Positive indicators for 2008 exports of Swiss watches to the Middle East

01-Feb-2009

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Positive indicators for 2008 exports of Swiss watches to the Middle East

Middle East provides an oasis for Swiss watch exports in 2008

Resilient yet robust Middle East holds promise, potential for Swiss watches

The global meltdown and economic recession notwithstanding, Swiss watch exports to the Middle East bucked the trend, as with the rest of the European & American continents and to the Far East, to actually register a vigorous & robust 23.4 % increase in 2008 value terms over the corresponding 2007 figures.

Defying the odds adversely impacting the remainder of the world, Swiss watch exports to the Middle East have consistently demonstrated single-digit increases for wristwatches and double-digit increases in the case of movements since 2002.

Senior watch & jewellery industry professionals are optimistic about the trade’s prospects for the region despite the continuing international financial woes. The Middle East has been the staging ground and litmus for new business prospects in the face of a remarkable resurgence for the industry. The recent simultaneous opening of nine different stores all in one humongous mall—The Dubai Mall by Damas for such diverse brands as Paspaley Pearls, Graff, Folli Follie, Leo Pizzo, Iosi, Poratti and Nouvelle Bague, is a good and specific case in point. Lately, Tiffany & Co. opened its 3,700 sq. ft. flagship store, its seventh in the UAE, at the swank The Dubai Mall, jointly at the hands of its New York-based President James Quinn and Damas Chairman Tawfique Abdullah. Jacob & Co. will also be opening its first exclusive boutique in the region in conjunction with regional partners, BinHendi Enterprises.

Other notable examples of continued and growing interest in the Middle East that translates into a strong an sure vote of confidence include the recent opening of a new Chopard boutique in Abu Dhabi, the second UAE boutique for Jaeger LeCoultre at The Dubai Mall; the inauguration of the second Cartier boutique at the Villagio Mall in Doha, Qatar and the sponsorship deals exemplified into the Rolex sponsorship of the Abu Dhabi Golf Championships 2009, the Omega sponsorship of the Dubai Endurance Races 2009 and the Longines sponsorship of the Dubai Show Jumping Championships 2009.

The recent successful conduction of the Dubai International Film Festival (DIFF) saw a galaxy of Hollywood stars and celluloid celebrities from across the world displaying jewellery from some of the most renowned international watch & jewellery brands.

Exhibitions are also leaving their mark and are a good indicator of buoyancy in the region. The recent success of the 17^th Jewellery Arabia 2008 in November in the Kingdom of Bahrain and renewed interest in the forthcoming 6^th Doha International Jewellery & Watches Exhibition to be held in the Qatari capital from 17 to 22 February 2009 point out to an area of renewed interest in the region by renowned international brands. The first edition of the International Jewellery Exhibition 2009 (IJEX) to be held in Muscat, the capital of Oman from 15 to 19 April 2009, the 7^th International Gold & Jewellery Exhibition to be held in Kuwait and the first ever Joaillerie Saudi Arabia to be held the capital Riyadh from 3 to 6 May 2009 are further testimonies of confidence and hopefulness in the Middle East.

The following table clearly indicates the growth of Swiss watches to the UAE in every price category during the January—November 2008 period over the corresponding January—November 2007 time frame.

Important: It must be noted that a sizable percentage of exports to the UAE is in turn re-exported to its vast hinterland that includes the Middle East & North Africa, Iran, the CIS & Caucasian countries, South Asian subcontinent and other parts of Africa.

Table I: Exports of Swiss wristwatches to the United Arab Emirates by price categories.

Price (CHF)*	Jan—Nov 2007		Jan—Nov 2008
Price (CHF)*	Units	Value CHF	Units	Value CHF
I) 0—200	496,269	30,567,284	596,886	37,478,083
II) 200--500	71,457	24,228,023	83,419	28,443,157
III) 500-3,000	83,691	114,427,721	102,578	130,698,716
IV) 3,000+	30,310	283,542,076	44,637	403,063,656
Total	681,727	452,765,104	827,520	599,683,612

(*CHF= Swiss Francs)

Table II: Absolute, Percentage Increases (Jan - Nov 2008 over corresponding Jan - Nov 2007) of Swiss watch exports to the UAE

Price (CHF)*	Increase Units	% Increase Units	Increase Value	% Increase Value
I) 0—200	100,617	+ 20.27 %	6,910,799	+ 22.61 %
II) 200—500	11,962	+ 16.74 %	4,215,134	+ 17.4 %
III) 500-3,000	18,837	+ 22.57 %	16,270,995	+ 14.22 %
IV) 3,000+	14,327	+ 47.27 %	119,521,580	+ 42.15 %
Total	145,793	+ 21.38 %	146,918,508	+ 32.45 %