In the current economic uproar of Gulf markets, art is in the spotlight, and among the various genres, Iranian works are in high demand in Dubai.
“Galleries have been progressively setting up shop in Dubai for the last five years; today there are some 25 of them,” said Myrna Ayad, special project manager at Mixed Media Publishing, owners of the art magazine Canvas. The growth of the UAE art scene has been dovetailed by the advent of fine art auctioneers and valuers such as Christie’s or Bonhams, recently establishing offices or organizing auctions in the Emirates.
Initiatives such as the Dubai and Abu Dhabi art fairs have contributed significantly to developing the scene. Other events, such as hosting the collection of Jewish Persian Nasser David Khalili — one of the wealthiest men in England — have placed Dubai on the international cultural map. Sharjah having been named cultural capital of the Arab world in 1998 was another factor contributing to the development arts in the UAE.
The Middle East’s social landscape also plays in promoting art. “Its large diasporas include artists who fled their home countries due to political tensions, whether from Iraq, Lebanon or Iran,” Ayad underlined. Most artists are sponsored by other nationals residing in the West or in the Gulf, as shown with Iranian communities on the US West Coast and Iraqis in London.
Cosmopolitan cities like Dubai and Abu Dhabi have benefited to a great extent from this particular trend. Home to affluent communities who view art as another essential asset after their yacht, plane or house — according to Ayad — she noted that art is increasingly acquiring the role of a status symbol.
She pointed out that the UAE art scene has been pulsating for the last six years. When it comes to art forms “the collectors’ focus has been mostly on contemporary art, but modern art has also been gaining attention.”
Iran in demand
Iranian art, whether in the form of paintings, sculptures or installations, is widely accepted in the UAE, according to Mira Khoubrou, managing director at the XVA gallery, adding that “Iranians are among the most sought after artists on the Dubai art scene. Their productions are shown in galleries and have been collecting the highest prices at auctions around the country.” According to her, Iranian artists are frequently choosing Dubai as a base.
In the UAE’s large avenues, all the talk is on prominent artists such Faredoun Ave, Reza Derakshani and Ramin Harizadeh whose works include photography, installations or paintings. “Dubai’s particular location on the world map, close to Iran and of easy access to the Middle East and Europe, accounts probably for the development of Iranian art on the country’s scene, with pieces that were previously only exhibited in Iran showcased in galleries around the city,” explained William Lawry of Christie’s.
Ayad reckons that Iranian art has generated top dollar at recent charities and auction events including the rotating Magic of Persia auction. Pieces by Farhad Moshiri were recently sold for about $500,000 at a first auction, for $600,000 during the Magic of Persia event and for $900,000 at the recent Bonhams auction. Sherine Neshat is another mover and shaker of the Iranian art scene, with the artist’s mixed media creations having fared extremely well around the world.
The pretty Persian penny
In the last few years, the value of Iranian art has increased dramatically, propelled to new heights by Iranian collectors. “Pieces by Iranian artists are priced on the average in tens of thousands of dollars, with some varying from $60,000 to $300,000. Such figures exceed by far original levels witnessed only a few years ago,” explained Khoubrou who believes that purchases by Iranian collectors account currently for more than 60% of total Iranian art sales.
Reza Derakshani, an artist whose collection is on display at XVA, agrees with this figure. “Dubai has been following a trend long set by Tehran where most collections are still, up until now, privately owned. Demand for Iranian art has been growing steadily and I’ve noticed at the recent Bonhams collection that Iranian collectors were competing for certain pieces,” he said.
According to Lawry, higher prices for Iranian art are encouraging sellers to place pieces of finer quality on consignment. Khoubrou concurred, stating that “we have more and more requests from companies who wish to develop their private collections. In such a context, the amount of liquidity witnessed by the region is certainly helping the art scene.”
Maneli Keykavoussi, head of Middle Eastern markets at the Fine Art Fund Group believes that demand is fueled by scarcity of supply in an environment where collectors and museums are not natural sellers. Collecting art is a long tradition in Iranian society, which saw a peak at the time of the last shah, under the patronage of his wife, Farah Diba.
A diverse crowd, Iranian collectors can be divided in two main groups. The first is comprised of an older and more affluent group of connoisseurs while the second, younger group includes art aficionados who either wish to establish their own private collections or are simply looking into a new and more profitable investment class. Keykavoussi underlined the emergence of art as a new asset class: in the last few years the Fine Art Fund, which is a close-ended fund, has witnessed an IRR of cash on cash return of 59.68%, and 36% on assets sold.
“Art is moving out into the investment field. Its low correlation with the equity and money markets and negative correlation with the bond market makes it less susceptible to a downfall and positions it as a new hedging tool,” she adds. As an example, the Indian art scene turnover has grown from $20 million to $400 million dollars per year. “I do not see why this trend could not be applied as well to the Middle East region,” she said.
Iranian art in Dubai is mainly marketed through galleries and action houses. Derakshani reckons he is usually either approached by gallery owners or has contacted them directly. On the other hand, Ayad believes that Canvas has certainly contributed to the promotion of the local art scene through their worldwide distribution network and attendance of art fairs.
“Institutions such as Christie’s and Bonhams have also helped shaping the sector,” she added. With galleries sprouting in Dubai’s older quarters, art has certainly been given a new address de charme.
Arab patrons, although choosing to maintain a low profile, are also scouring the region in search of the perfect oeuvre d’art — their personal master piece, and indirectly tend to ultimately set a benchmark for art pieces and define what’s hot and what’s not, Ayad believes.
The young project manager underlined that it is not Iranian art that has become necessarily more popular but the whole Middle East that is emerging as a new art scene.
“Iran is large country with a sizable expatriate community, while Iranian art is definitely popular, but so is Middle Eastern art, after Indian and Chinese art,” she concluded. At a recent Christie’s auction Middle Eastern art reaped some $12.6 million, with Iranian art along accounting for $5 million.
“Although at the 2006 auctions, Iranian art was mostly sought after by Iranian collectors, of late it has generated more international interest, especially from Arab collectors,” Lawry pointed out, and added that the 2007 Christie’s auction, the first and second largest buyers of Iranian works were Europeans, while the third was an Arab .
