The Middle-Eastern art market of today has made significant progress since the 2001 Sotheby’s sale of the Riad Al-Rayyes collection of Arab art.

When Christie’s first opened its doors in Dubai in 2005 they projected $30 million in sales between 2006 and 2009. Yet in only 24 months of auctions Christie’s managed to generate more than $100 million.

In May 2006 Christie’s in Dubai held its inaugural sale of International Modern and Contemporary Art. This was the first Christie’s auction to feature Modern & Contemporary Arab & Iranian Art. The Arab and Iranian section exceeded all expectations, almost tripling its presale estimate, with $2.2 million raised from this category alone. Just eight months later, in February 2007, a comparable selection of Arab and Iranian art raised just over $4 million. However, the sale in October 2007 was the true turning point with over $12.6 million of Arab and Iranian art sold in one evening. The fourth series of sales in April 2008 sold over $18 million for Arab and Iranian art, 32% higher than the volume achieved in October 2007. For the first time in any auction house, three works in this category achieved $1 million hammer price or above; whilst the fifth sale in October 2008 included Turkish art for the first time.

Similarities are often drawn between the Middle Eastern art market and that of the unstoppable force that is the Chinese contemporary art market as a result of the country's roaring economy. However, some have even greater expectations for the Middle East because of the many art initiatives in place to showcase the region's artists as well as important Western art that has the direct backing of the government or its royal families. Abu Dhabi is planning to spend $50 million to fill its Louvre. Sheikh Hamad bin Khalifa al-Thani of Qatar is on a buying spree to fill a quintet of museums he's planning in Doha, the emirate's capital.

The region’s wealth is no doubt pushing prices higher, but the new appreciation for modern and contemporary art, comes along with a new breed of collectors, buyers and investors willing to spend money on it - a global phenomenon we are now seeing throughout both Western and Emerging art markets.

The art industry is certainly taking an increasing interest in the region and not a moment too soon. The organisers of long-established US art and antiques show, Haughton International Fairs, launched its first satellite exhibit in Dubai in February 2008 and followed their success with their second edition of the fair in Dubai in February 2009. Art Dubai marked its third year in 2009 as the leading fair for contemporary art in the Middle East and included The Global Art Forum – a series of debates on contemporary art in the Middle East. British art collector Charles Saatchi has also made his interest in the area known, and has reportedly been exploring the possibility to open a gallery in the United Arab Emirates. Saatchi has also added a Middle-East exhibition to his schedule at his new gallery in Duke of York Square in London; “Unveiled: New Art from the Middle East”, showcasing 90 works from artists from Syria, Iraq, Lebanon and Iran.

Record Prices for Contemporary Middle Eastern Artists: Iranian contemporary artist, Farhad Moshiri (born 1963) sold ‘Love’ (2007) for $900,000 (excluding premium) through Bonham’s in March 2008. Moshiri was also introduced for the first time to the main Western Contemporary Evening sale in July 2008 at Sotheby’s in London, where he sold a work for $560,000, more than three times the high estimate. Five works by Iranian artists broke through the $1 million barrier for the first time in March and April 2008.

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1858 Ltd works in association with the HSBC Private Bank Design and Art Advisory team. It is a leading international art advisory firm providing independent and impartial advice to high net worth individuals, financial institutions, corporations and museums. From its headquarters in London and offices around the world, 1858 services an international client base providing expert advice on all areas of the art collection process.