SPOTLIGHT ON THE MIDDLE EAST


LIVING WELL: Constantly rising living standards in the region and the overall improvement of the economic situation in most of regional states accounts for the upswing in fortunes for the textile care industry


opening a new channel by engaging with Civil Defense projects in UAE. Salhab comments:”This initiative involves servicing preexisting machines and offering new machines for different locations, expanding the company’s footprint and establishing new business opportunities in essential service sectors.” Salhab expects a continuous growth in the laundry and drycleaning sector across the region, especially in industrial laundry services. According to him, that will be mainly due to several factors: Ongoing expansion in tourism, hospitality, and healthcare sectors: Particularly in countries like UAE and Saudi Arabia, where hotels, hospitals, and large facilities continue to grow. Medium-sized businesses are also modernising, creating steady demand for efficient, reliable laundry solutions. As he also adds, there is a gradual shift towards automation, digitisation, and sustainable practices, which will shape the future of the industry in the region. However, as Salhab and other market players reveal, a number of serious problems may create serious problems for a further expansion of major players in the region. Among them is primarily ever elevating labour costs along with staff retention difficulties:


In contrast to other markets, currently a significant number of Middle East customers continue to focus on initial investment rather than the total cost


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of ownership which means that clients especially in medium-sized businesses prefer to focus solely on the initial purchase cost rather than evaluating the total cost of ownership, which includes energy efficiency, maintenance savings, and long-term reliability. This mindset can delay their investment in high-quality, energy-efficient equipment.


In recent years Miele and other global players, operating in the Middle East have also faced aggressive price competition from local low-cost competitors and suppliers who offer cheaper equipment, often compromising on quality and after- sales service. This creates price pressure and can affect overall industry standards. While there is increasing interest in eco-friendly solutions, many local customers remain still price-driven and take sustainability lightly, especially since strict government regulations are not yet fully enforced. This sometimes results in reluctance to invest in energy-efficient, well-built machinery, even when it aligns with long-term operational savings and environmental responsibility Finally, André Tienemann, director of sales for Kannegiesser told LCNi that the market remains very important for the company, while the already achieved results remain strong. According to Tienemann: “2024 proved to be an exceptionally strong year for us in the Middle East laundry and textile care market. We secured several significant


new projects, and the positive momentum generated by Texcare Frankfurt resulted in a surge of new inquiries, opening up valuable opportunities. Notably, the Israeli market, where initial expectations were conservative, exceeded projections significantly. By leveraging our local partnerships and providing robust remote support, we ensured our customers; laundry operations remained uninterrupted and efficient.


“The general trend continues its positive trajectory. Our strategic forecasts from three years ago are now materialising, demonstrating the accuracy of our long- term vision.


“We are confident that the demand for laundry and drycleaning services in the Middle East will continue to grow in the coming years. While we anticipate potentially reaching peak growth within our sector this year, it is important to understand that market saturation occurs rapidly in emerging markets like the Middle East. This does not signify a cessation of investment, but rather a gradual moderation. Notably, the region has demonstrated remarkable resilience over the past three years, effectively navigating global challenges such as Red Sea piracy and escalating regional conflicts. While global tensions may have indirect effects, primarily on supply chain logistics and resulting price adjustments, the region has shown a capacity to maintain its economic momentum.”


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