Imports of Malaysian timber to the UAE have increased even as the emirates holds on to its status as Italy's number one destination for furniture exports in the Gulf.

Though the amount of timber exported from Malaysia to the UAE has risen in recent years, total UAE timber imports dropped almost 14 per cent from $562 million in 1998 to $484 million in 1999, said Dato Syed Hussein Al Habshee, Malaysian ambassador to the UAE.

"This was perhaps due to the overhang from low oil prices in 1998," he added, but said the recovery in oil prices last year has again resulted in a boost in imports.

The UAE is Malaysia's largest market in the region for timber products. Total exports of timber products from Malaysia to the Middle East reached $214 million in 2000 - up 37 per cent on 1999.

To the UAE, they stood at $66.5 million, accounting for 31 per cent of the overall to the Middle East. Sawn timber imports were $16.1 million, that for medium density fibreboard was $15.5 million, while plywood accounted for $1.2 million and furniture, $33.2 million.

Total Malaysia exports of timber products worldwide rose by almost 4 per cent from 1999 to $4.66 billion this year.

The growing importance of the UAE and the region prompted the Malaysian Timber Council (MTC) to set up a regional office, in Dubai in 1999, said Al Habshee.

With such a strong emphasis on the region, MTC found it easy to have 32 companies take part at Index 2001 - currently being held at Dubai World Trade Centre.

In total, Malaysia has 63 companies taking part.

While this is a decrease from last year's 73 companies, Malaysian officials said the participants were taking up more space than before.

And Italy's massive contribution to the decorating of homes, offices and hotels in the UAE is reflected in the 110-plus companies taking part at Index 2001, said Ranieri Fornari, Italian ambassador.

The UAE remains the largest regional importer of Italian furniture since it superseded Saudi Arabia about three years ago because of the massive amount of furniture it re-exports, and also because of the popularity of Italian-designed furniture at Abu Dhabi and Dubai hotels, Fornari added.

Dubai, which is known for being a re-export hub, sends Italian furniture on to India, Pakistan, East Africa and other areas in the Middle East, said officials.

Last year, Italy exported $1.6 billion worth of furniture to the UAE, a 25 per cent increase on the previous year.

Officials added that classic furniture from Italy has a strong presence in the UAE market, but, increasingly, design furniture is starting to feature.

"We are here at Index 2001 because Italy makes up 30 per cent of the furniture and interior design market in the UAE," said Fornari.

"I think this is quite an achievement for us to reach over the course of time and it is because of the style, technology and quality of our products."