Italy's construction and natural stone industries continue to strengthen their position in the UAE, with robust export growth and a steadfast commitment to sustainability.

Recent data reveals Italy’s expanding influence in the region, underscored by innovative technologies, high-quality products, and a focus on environmental impact reduction. 

Export Growth Highlights Italian Strength in the Sector

In the first half of 2024, Italian exports of stone materials and stone-working technologies reached EUR 1.155 billion, marking a 4.2% increase in natural stone exports alone, which totalled EUR 1.067 billion. Exports to the UAE rose by 2.1% to nearly EUR 40 million, reinforcing the UAE’s position as the eighth-largest global market for Italian stone products.

This growth further cements the UAE as a strategic hub for Italian businesses in the Middle East.

Italian Excellence in Global Construction

 Italy’s natural stone sector is globally renowned, employing 34,000 workers across 3,200 companies and exporting 71% of its production. The industry’s total trade surplus rose by 1.4% in the first half of 2024, reaching a remarkable EUR 1.35 billion. Iconic Italian marbles and building materials have played a key role in shaping the UAE’s urban landscape, contributing to structures such as the Sheikh Zayed Grand Mosque and Emirates Palace.

Italy's growing presence in the UAE market is also driven by innovation. Italian exports of building materials, including cutting-edge technologies for construction and stone processing, have surged. Products such as metal structures, synthetic fibre solutions, and ceramic architectural elements have seen increasing demand. Italian manufacturers remain committed to providing sustainable solutions that cater to the UAE’s ambitious construction and infrastructure projects, valued at USD 777 billion across the GCC.

Valerio Soldani, the Italian Trade Commissioner to the UAE speaks to Built Environment ME about the European country’s commitment to collaborate across the mega and giga projects happening across the GCC.

Q. Trade between Italy and the UAE has grown significantly. What role does the built sector – construction and materials – play in this relationship?

 In 2024, we are set to break every record for Italian exports to the United Arab Emirates, with a projected 22% year-on-year increase in the first three quarters alone. By the end of the year, exports are expected to surpass the €8 billion mark.

The construction sector is pivotal in this trade relationship, with the Emirates hosting major projects alongside other regional markets in the GCC and MENA regions. The region currently has over €850 billion in active projects, highlighting its significance. Many Italian companies are deeply involved, some of which have established local branches in the Emirates to better serve the market. This sector is one of the key drivers of Italy’s export growth. 

Q. What is the Italian delegation showcasing at Big 5, and why is presenting here significant?

We have 300 Italian companies in total, with 100 represented across two official Italian pavilions under the Italian Trade Agency. They are showcasing a wide range of products, from advanced technologies to final and interior design products, covering every aspect of the construction project lifecycle. This includes natural stone producers, natural stone technology manufacturers, and companies specialising in water treatment, materials, sustainability-focused solutions, and innovative technologies for new project development.

All these companies have come to Dubai because it serves as a central hub for conducting business across the region. They have a longstanding history of engaging with regional markets, using Dubai and the Emirates as a gateway to the broader Middle East.

The Italian Trade Agency has been active in this region for years. For the 2024 edition of Big 5, we are pleased to announce a significant expansion of our presence. We have finalised an agreement to increase our participation by 30% in terms of the number of companies and exhibition space.

This enhancement reflects Italy's role as one of the most prominent national participants at the event. In 2024, we will also host a major side event titled Building Value in the Gulf. This event will bring together leading Emirati stakeholders and top Italian companies for networking and collaboration, underscoring Italy’s commitment to partnering with the Emirates on a journey towards sustainability, innovation, and the development of exceptional construction projects infused with style and cutting-edge technology.

Q. What trends in the Italian market could disrupt the status quo here?

The main trend, though more of an industry commitment than a fleeting tendency, is sustainability. Italy leads the European Union in circular economy practices, repurposing materials into innovative solutions for foreign markets while sourcing an increasing share of energy from renewable sources. This focus is set to expand in the coming years.

Additionally, the growing trend involves establishing strong relationships with regional developers and delivering customised solutions. Italian companies, ranging from SMEs to established brands, are increasingly setting up local branches in the GCC. This approach allows them to move away from merely exporting goods and towards a more integrated, relationship-driven strategy. These trends, particularly in sustainability and innovation, represent a more holistic business model.

The Italian Trade Agency plays a key role in fostering these collaborations by supporting Italian companies and maintaining a constant presence to build connections with local developers and stakeholders.

Q. How have Italian firms evolved to serve the GCC market?

Italian firms have adapted by closely aligning themselves with local developers to support key projects in the region. Italian companies contribute significantly across various sectors, including water management, energy, and infrastructure, as well as smaller-scale supply chain products. A prime example of innovation is the Trackit project by the Italian Trade Agency. This blockchain-based system tracks every step of the supply chain process, ensuring transparency and sustainability for made-in-Italy products.

For instance, whether it's a lock from a renowned Italian brand or a specific chemical product, customers can trace its entire lifecycle and verify the company's investment in sustainable practices and technology. This commitment resonates strongly with local and regional demand, where developers are increasingly prioritising sustainability and corporate responsibility.

By offering solutions that align with these values, Italian firms continue to achieve record-breaking export figures. Developers and stakeholders actively seek partnerships with companies capable of meeting sustainability goals and addressing the challenges of a rapidly evolving market.