Blue period for the art market

With liquidity drying up, the global economic downturn could put a damper on the UAE's art market, Matthew Girling, European & Middle East Chief Executive at the international auction house Bonhams, told Emirates Business.

The UAE has emerged as the most exciting new international art market in recent years, and the appetite for all forms of art has grown exponentially following the announcement of several key art infrastructure projects. And Bonhams has been one of the early auction houses stepping into the market, preceded only by major player Christie's, which organises two sales a year in the UAE.

With its own second sale in the UAE set for the One & Only Royal Mirage Hotel on Monday, Bonhams hopes both to further whet the regional appetite for art and capitalise on its success.

Pre-sale viewing of both the art and some fine jewellery from future sales is being held at the hotel from 2pm to 8pm until tomorrow night.

Girling talked to Emirates Business ahead of the event.



—What are your estimates for this sale? How much do you expect to raise?

—We achieved 33 world records at our inaugural Middle East auction in March this year, surpassing all expectations with total sales of over $13 million (Dh47.7m). It's difficult to say how much we'll achieve at our second auction on Monday, but I can tell you that we have some truly incredible pieces such as Anish Kapoor's Mountain (estimate $1.8 – $2.6m), a large and dynamic work by Iranian Faramarz Pilaram (estimate $400,000-$600,000) plus a rare work from pioneer artist Sohrab Sepehri from his Tree series (estimate $400,000-$600,000).

—Some 50 per cent of the works on sale are by Iranian and Emirati artists. Are you consciously focusing on regional work?

—Yes, from our experiences in emerging art markets such as Hong Kong and South Africa, we have noticed a growing trend for first time collectors to purchase contemporary art from their own indigenous regions. With the blossoming and development of a national psyche of arts appreciation in the UAE, it was only natural that we played a part in showcasing works from Emirati artists in our second Middle East auction. We believe you'll now start to see a rise in Emirati, Arab, Iranian and Pakistani artists selling at auction. One of the world's leading art critics, Souren Melikian, recently commented that Iranian art is particularly undervalued at this point in time, and has great potential.

—You've said that the UAE is destined to become one of the world's leading art markets. When do you think this will happen?

—It is already happening – all eyes of the international art world are now on the UAE. This is one of the world's only remaining buoyant economies, and has some of the world's most significant emerging artists such as Iran's Farhad Moshiri. What sets Bonhams apart here is that we are selling pieces by Iranian and Arab artists that haven't previously gone to auction worldwide. We like to think we're working as a bridge-builder between the traditional elites of the art world and a larger appreciative local audience.

—What needs to be done for the UAE to get there sooner?

—Middle East art buyers and collectors have already contributed to the success of the London and New York markets, so the fact that all the auction houses have now established auctions in the region means we are well on the way to creating a significant regional art scene.

—But what is the market for art like in the current economic scenario?

—Things appear to be quietly buoyant, but the international and regional art market is not going to be immune to the global financial market by any means. What you need to keep in mind regarding the Middle East art market, is that initially the volume was turned up so high with enthusiasm that sales at all auction houses were attracting record prices of over 10 times the original estimated value for works.

—We're going to see a correction?

—Expectations have been set a little unrealistically high, so yes, we'll probably see the market correcting itself accordingly. You've got to remember that an artwork achieving a price set within its original estimate is still a success, it doesn't have to achieve record prices to be considered a victorious result. What the Middle East definitely has in its favour is the rise of global importance of Arab modern and contemporary art – it's an emerging market and there's still great potential for market expansion.

—With other auction houses like Christie's here in the region, how is the competition impacting you?

—It's a case of the more the merrier in my view, we want the auction market to be established in the region.

—What new buying patterns have you noticed?

—It's a bit too soon to tell, but the market seems to be quite interested in sculpture. We're also noticing that while modern and contemporary Arab art is on the rise, there's support for older historical Oriental material which we'll be looking into for future auctions.

—What's next for Bonhams? Are you looking to expand your presence in the market here?

—We've already planned to expand our presence by holding three auctions next year. We think there's ample growth potential across the Gulf and we'll be looking at other regional art hubs such as Abu Dhabi, Bahrain and Qatar.



Bonhams Middle East sale for Modern and Contemporary Arab, Iranian, Indian and Pakistani Art. From 7pm at The One & Only Royal Mirage Hotel on Monday. Pre-sale viewing is open to the public from 2pm to 8pm tomorrow.