Bonhams, London's third-largest auction house, said it increased sales by 25 percent in 2007 as the art market boomed across the board. Bonhams sold $590 million at its global auctions last year, European and Middle East Chief Executive Matthew Girling said in an interview in Dubai today. "Growth has been all organic," said Girling, 48."It was pretty much across the spectrum. It was a record year for Islamic art, jewelry, classic cars and American paintings."Bonhams released financial results for the first time last year, disclosing sales of $473 million, following acquisitions, including Butterfields of California and Goodman Auctions of Australia. Bonhams has expanded sevenfold since 2000. Girling, in Dubai to promote Bonham's first auctions in the region planned for March 2 and 3, said that 2008 may witness slower growth if financial markets falter. "What tends to happen is that when the downturn comes in the stock market, the art market tends to follow on six months later, maybe even some time a year later," Girling said. "The art market tends to rely on a bit of surplus cash. We're at the frothy end of things."Christie's International, which is owned by French billionaire Francois Pinault, put estimates for its February London auctions at 38 percent higher than a year earlier. In the February 2007 London sales, Christie's and rival Sotheby's sold 49 percent more art by value than the year before. Takeover Targets Bonhams will continue to look for acquisitions in 2008 should any opportunities emerge, said Girling today."The pickings are quite slim in our business,"he said."I don't think there are many opportunities."Emerging markets will play a larger role for Bonhams in 2008, specifically Russia, China and the Middle East. "To say we had an office in Moscow would be over-egging the cake," he said. "We've appointed an agent in Moscow. There are indications that it might be interesting in the future. China's art market has been Hong Kong-based, but clearly the rest is coming on stream."In Dubai in March, Bonhams will be offering jewelry, watches, modern and contemporary Arab, Iranian, Indian and Pakistani art. "When you go somewhere new, you go with what you perceive to be your safe bets," Girling said today."When established, you can have a bit of fun and experiment." Bonhams will focus on contemporary over historical Islamic artifacts at its first Dubai auction. The market for historical Islamic objects is traditionally in Paris and London, said Girling. "Here, the demographic is younger and they may see that as something their father or grandfather may have bought," he said. Bonhams remains considerably smaller than the leading auction houses, Christie's and Sotheby's, which both sold around $6 billion of art last year. Sotheby's, after trailing Christie's in 2006, drew even with its rival in 2007. Christie's is based in London. Sotheby's, which has its main salerooms in New York, is incorporated in Wilmington, Delaware.