Swarovski upbeat as Gulf market recovers

Dubai: It's now official. Swarovski's Middle East business was partly feeling the cold grip of the econ-omic downturn over the last months.

However, Werner Baumgartner, managing director of the Austrian crystal manufacturer's subsidiary in the Middle East, is tingling with optimism.

Baumgartner said he was receiving clear signals from markets and business partners "that the worst is over".

"People are getting more confident again," said Baumgartner.

Swarovski's business comprises wholesaling of the world-renowned fashion crystals and the sale of architectural and lighting components throughout the Middle East.

"It is much different from January when the entire Gulf was in a state of economic shock," he said.

After oil prices hit the $70-mark and government programmes jump-started an idle economy, things now are slowly coming back on track again, he says.

In terms of revenue, the past year held better fortunes for Swarovski than the prior one due to strong sales in Saudi Arabia and Kuwait, Baumgartner said.

However, he refrained from divulging exact numbers under the company's official policy.

In the UAE, Swarovski still relies on the stable purchasing power of UAE nationals - the most important target group for crystal-designed abayas.

Swarovski's major market in the UAE is manufacturers of abayas. They include Hanayen, which is based in Dubai, and Sharjah-based Sweet Lady, as well as national designers.

Besides that, Swarovski is also supplying architectural and design projects.

Two of the latest projects in this respect have been the Bang Lounge in Dubai's Old Town and the Cavalli Club in the Fairmont Hotel.

Baumgartner said one of the most prominent recent orders was for crystal equipment destined for the world's biggest chandelier in Abu Dhabi's Shaikh Zayed Mosque.

The latest sector Swarovski's local unit is delving into is the decorative lighting business.

This is a new field that is following a trend whose popularity has recently swelled in the region, Baumgartner said.

Swarovski works with crystal chandelier designer Schonbek, a US firm with Bohemian roots. Together they offer a "unique lighting design that has basically no noteworthy competitor worldwide," he added.

However, the fact that many construction projects remain on hold poses a challenge for Swarovski as the sector used to be a thriving market for decorative lighting locally.

Background: Bohemian-inspired

Swarovski is a manufacturer of crystal glass and a range of related products as well as optical instruments. The company is headquartered in Tyrol, Austria, and was founded in 1895.

The company's famous expertise in crystal-glass jewellery and cutting dates back to the founding family, the Swarovskis, after whom the company is named, in what was then Bohemia and today is the Czech Republic.

The product range includes crystal sculptures and jewellery sold in shops and duty free outlets worldwide, as well as fashion crystals for clothing, decor and lighting objects such as chandeliers.

Swarovski runs a crystal theme park in Tyrol designed by Austrian artist André Heller. However, no such park is planned for Dubai at the moment.