Toy sector likely to grow by 4%

The toy sector in the UAE and the rest of the GCC is expected to grow by four per cent this year according to the organisers of the Middle East Toy Fair, which opened in Dubai yesterday.

Abdul Rahman Saif Al Ghurair, Chairman of the Dubai Chamber of Commerce and Industry, said: "The sector is always growing."

Worldwide toy sales are expected to reach Dh317 billion by 2010 – an increase of 14 per cent since 2008.

Elisabeth Brehl, Managing Director of fair organisers Epoc Messe Frankfurt, said: "The GCC toy business grew by six per cent in 2008 compared with the previous year. And despite the international financial crisis the sector will see solid growth this year – even if it is at a lower rate of four per cent.

"The figures and appealing demographics reveal that the Middle East market puts a premium on spending related to children's upbringing and education."

The young GCC population offers major business opportunities to the sector. Recent statistics indicate that the birth rates in the UAE and Saudi Arabia are growing annually at a rate of 2.8 per cent and 1.61 per cent respectively, compared with 1.1 per cent in the UK and 1.4 per cent in the US.

Show Manager Monica Schulz Blank said: "The toys business will maintain steady growth in the UAE and the region despite any downturn elsewhere in other sectors.

"The four-to-12-year age segment constitutes a larger percentage of the population of the Gulf and Middle East compared with Europe and many toy manufacturing companies have been producing products that are more culturally oriented to the Arab World. Children always want toys and parents cannot stop them having them."

The UAE is the seventh largest importer of toys worldwide, with the total value reaching Dh603 million in 2007. Around 55 per cent of this is re-exported to GCC and African countries, according to figures from Dubai Ports.

"The UAE was previously the eighth largest nation worldwide for toy imports, but the latest market developments have boosted its rating to seventh after the US, UK, China, Iran, India, Hong Kong and ahead of Canada, Thailand and Australia."

Blank said the number of countries represented and companies taking part in the show were up on last year. He said: "We have 100 exhibitors from 30 countries and expect to attract more than 5,000 visitors from 100 countries."

Al Ghurair said: "Dubai Municipality's labs have verified that all the toys displayed at the fair meet safety and health standards."

The show continues at the Dubai International Convention and Exhibition Centre until tomorrow. Those taking part include leading manufacturers and distributors of products for babies and children, stationery and educational supplies.