When most people hear the word Dubai, several things usually come to mind: man-made islands, the tallest hotel in the world (Burj al Arab), residences in the shape of a gigantic palm tree that stretch along the Gulf, and the ongoing construction of the world's tallest skyscraper (the 134-floor Burj Dubai, to be completed in 2008).

But although more than 25 percent of the world's construction cranes are working around the clock there, Dubai is generating more than a boom in infrastructure and tourism, as major industries have begun looking at Dubai as the entry point to markets throughout the Middle East, as well as in the Emirates itself. The global toy industry is among them. The city has hosted the Middle East Toy Fair for the past six years, and this year 137 exhibitors from 30 countries, including Australia, China, Germany, France and the United States as well as states closer to home—Lebanon, Saudi Arabia, Egypt, Jordan and Morocco—were present.

The show, which took place May 13 through 15, boasted several pavilions, sectioned off by region, and more than 6,100 attendees, including media and buyers from around the world. Exhibitors were intent on expanding their product's reach into the Middle East, as well as further developing Dubai as their embarkation point to markets in Africa.

Ontario-based Wild Republic, for one, wants to put direct focus on both markets by opening a new office in Dubai this summer. General manager Dirk Jaffer told Playthings that the company sees a big push for its safari and wildlife plush in the Mideast and Africa, and decided to open the office in Dubai to reach the market directly, instead of finding a local distributor the way most foreign companies do when expanding into the region. “It's our introduction to the people of the region,” he said. The company is starting off with a smaller selection of product to see how—and what—takes off at toy stores, gift shops and, in Africa specifically, safari shops. “We want to identify ourselves in this region. We have the U.K., Denmark, Italy, Australia, Singapore, Canada, but we're not here yet.”

Germany's Ravensburger, Vilac of France, Bestever of Australia and baby product company Amallis of Dallas are some international exhibitors that recognized the importance of having a presence in this part of the world, a region with a bounty of young families, and where more than 50 percent of the population is under the age of 16, according to recent estimates from London-based market research company Media Matters. The study also reports the Middle East toy market at more than $1.5 billion in sales, with an expected growth of 11.5 percent by 2008. The same study finds that the average yearly expenditure per child on toys and video/computer games in the Middle East is $327, more than twice the level of sales in Europe and the second largest spending after North America.

Ramona Pariente, president of Safari, Miami Gardens, Fla., understands the opportunity offered in the region. Safari was on hand with wildlife figures, and Pariente had orders throughout the show from educators, toy and gift shops and other museum/wildlife shops throughout the Middle East. She told Playthings that, while the Middle East isn't for every toy category, the market is still growing, and is one more North American manufacturers should be a part of—and soon! “We've been invited for several years,” said Pariente. “And I said, 'I think it's time to showcase here, because it is a growing market.' Honestly, we came with so many preconceptions, but you quickly learn that buying in this part of the world is the same as anywhere else. Some are looking for electronics, some are looking for plush. The market here is still developing, but this region of the world has a lot of potential.”

Another first-time exhibitor, Kids Inc. of Dubai, a distributor of educational children's toys like wooden toys and games from Haba, Spielstabil, Chelbona and Nathan, as well as ride ons from Denmark's Winther. Director Petra Arzberger-Al Naqeeb told Playthings that, since play is rarely incorporated into educational programs in the Arab world, the show gives her a chance to promote more educational toys to retailers and educators. However, this lack of “fun” in education is improving, and she is working with local schools to develop fun lesson plans in Arabic and English. There are also safety standards that need to be addressed for toys manufactured in the Middle East, which is why she chooses more European toys for now. “There's a new generation looking for educational toys,” she said. “Electronics will always be up, but the market for educational toys will increase.” Arzberger-Al Naqeeb is currently looking for a retail space in Dubai, but it is very difficult to get the right real estate at an affordable price in Dubai's boomtown economy. There's the biggest and the best in Dubai, of course, and real estate options are tight, particularly when looking for a prime location for a toy store—competition among existing toy retailers is fierce. Among the players are big box stores like Toys “R” Us, which has several stores in the Emirates; the smaller Gulf Greetings chain, the Mideast arm of Hallmark; and The Toy Store, which currently has four stores, two in Dubai— including the one visited by Playthings in The Mall of the Emirates—one in Qatar and another in Oman, with a larger store opening in Bahrain in another year and a half. Egypt and South Africa locations are also on the agenda.

Peter Bracken, managing director of The Toy Store, and Domen Grobovsek, purchasing managing director, sat down with Playthings to discuss their approach, and how they continue to be successful in the Middle East as one of the littler guys. Grobovsek said that parents in the Middle East have specific preferences when it comes to purchasing toys, so flashiness isn't necessarily a factor in categories like dolls. “In the Emirates, children are still into Bratz,” Grobovsek explained. “They look at the popularity, and at the end of the day, if the girls like the look, they'll buy it. It's a very educated society. Although it's popular, it's never really been about Bratz and 'girl power.' Here, it's more about what is nice looking. Toys are taken for what they are—toys.”

Current big sellers for smaller kids at The Toy Store include plush; hobby kits like Caterpillar; remote controlled vehicles; dolls; preschool wooden toys; properties like Dora the Explorer, Thomas and Friends; Power Rangers action figures; and, one of the most popular items in store, World Wrestling Federation figures from Jakks Pacific. For girls, the doll category is still strong with Barbie, Bratz and Fulla. A sensation since its initial launch four years ago, Fulla, a Barbie-like fashion doll from New Boy, based in Damascus, Syria, has several different styles, including contemporary “indoor” outfits as well a version with the traditional Muslim abaya and prayer mat. The Toy Store has devoted an entire section to Fulla merchandise, including craft kits, accessories and playsets.

Grobovsek said that the store tries to have product targeted for younger families, and he added that, like most markets, choosing boys' toys is more challenging than finding ones for girls, so they use this as an opportunity to take risks by searching the world (via most international toy fairs) for new products their competitors wouldn't carry, including adult collectibles.

In the collectibles category, Grobovsek and Bracken noted that some in the industry see it as a risk, because some properties “just don't translate” in the Middle East. The Simpsons and SpongeBob SquarePants, for example, are not popular properties here, he says. However, Grobovsek noted that not having a license for Mideast distribution and poor promotion by those who do often do more to keep collectibles off shelves than do issues of cultural translation. “Collectibles are a great opportunity here,” said Grobovsek. Companies like Master Replicas [and] McFarlane would develop if they were over here. There is such a big immigration of people [internationally].”

Hussein Ftouni, president and CEO of the Dubai-based The Licensing Company—whichworks with several big U.S. and European properties, including Disney characters, Barney and the U.K.'s Noddy—told Playthings that he agrees that the collector market is a tough sell in the Middle East. Properties like Lord of the Rings, 24, Prison Break, and yes, The Simpsons, don't translate as they would in humor or drama in the States, Europe or elsewhere. “Unfortunately, The Simpsons doesn't work in the Arab region,” he said. “There are lots of restrictions to content, and you just don't see people wearing licensed product. Big licenses here seem to be just for kids. If it's vulgar, it's usually something that doesn't translate well here.”

For licensed products, children's properties work the best for Ftouni, who visits the New York, Hong Kong and Nuremberg toy shows each year to find new children's properties, and is currently talking with Nickelodeon about licensing characters to the region. “The Middle East is important because of licensing,” he said. “The arrival of a U.S. license here translates into something very successful to us. It seems to be what licensors are looking for, but most are still not ready to come to the Middle East.”

The Toy Store's Bracken believes that the Middle East can be a tricky region, but that someone has to make the first move bringing in new product and brands that have never been seen there before. “It's an excuse when people say a property doesn't translate in the Middle East,” said Bracken. “The Simpsons has been a property here for many years, but it just wasn't marketed properly. There's such a huge mix of consumers here.”

Overall, it's important for retailers within the Middle East to get out and go to shows in the U.S. and elsewhere and find the next big thing, according to Grobovsek, who added, “From the purchasing side, you cannot sit behind a desk and decide what a 6-year-old girl wants to play with. It just doesn't happen.”