For the life of me, I am unable to have Houzz upload my photos! Here we go

Just to show you size of room, floors and secrétaire

This is the colorful Kelim

You may want to use the Kilim rug for your color inspiration and with two dogs a navy fabric for reupholstering couch would be a nice choice (also consider durability of fabric). Without seeing style of couch though, it’s hard to suggest what would suit and perhaps the link below may help https://housefur.com/the-best-sofa-fabrics-for-dog-owners/amp/

Search “Kilim rug living rooms“ on Pinterest to see how different color couches work, how room is accessorized to reflect an airy feel, look for smaller and lighter pieces, and add splashes of color.

You are going to gets lots of different opinions, so it’s really important to also view/research as many on line ideas as you can. You’ll soon get a sense of what you like and what works best for your lifestyle.

What an absolutely beautiful rug! Are you looking for leather or cloth upholstery?

I think if you went with a modern boho look, you can achieve the "cozy but airy" look and feel. Here are a few inspo pix:

Walker Residence · More Info

Mid Century Modern Boho · More Info

Grapevine Texas Urban Modern Home · More Info

Some inspiration. I think you can see from what's been posted that the key to your light and airy boho look will be pure white walls. Then the colorful Kelim and other decor can kick it up a notch.

Wallingford · More Info

Coastal Boho · More Info

Midcentury Sunroom · More Info

Thanks DeejnOhio! I am looking for fabric? What color would you go with?

Thanks Sabrina! I love the photos you sent. What color upholstery would you go with? Personally, if it weren't for my furry babies, I would've gone with white.

Thanks decoenthusiast! Agree on the white walls. What about the upholstery color? This is my true dilemma?

And the wood finishes please.

What color are the dogs?

From a computer merely, but greige floor and greige walls seems a start for airy. And adding a few brights with texture would add some coziness.

Interesting from a pro on houzz: "Many opt for neutrals on walls, floors and large pieces of furniture with the intention of introducing color through accessories. But often, bright throw pillows and vases look out of place in a sea of gray, beige or greige. Combat blandness with a statement piece (in a statement color), like this CHAIR.
You can always reupholster or swap out a single piece of furniture like this, should you tire of it. (But, I don't think you will)."

Houzz Photo · More Info

Another pro's thought. Funny how a blond/natural wood, whether table or lamps can be an accent, with cooler neutrals around it....

"The light stained oak in this dining set is a perfect complement to pale gray walls. The focal point of the room, of course, is the radiant red cupboard."

Shaker Grey · More Info

Sabrina showed a medium blue -- a sofa could be versatile in that color, or a chambray / denim color. Faded even.

And go with your rug.

"Hide" Wall Art · More Info

Basilica Sky, Table Lamp, Basilica Sky Finish, White Hardback Shade · More Info

Sunset Trading American Slipcovered Sofa | Indigo Blue · More Info

Or contemporary furniture with few details? [the shape seems a bit cozy to me]

Flash Furniture Egg Series Red LeatherSoft Side Reception Chair · More Info

Maureen... Thanks so much for your suggestions and link. Will do my research. Actually, navy was my choice except that I am scared of it being too dark for the room. Yes, compact yet comfortable pieces is what I am after. Any thoughts about the wood finish of the coffee table and tv stand? I haven't bought them yet.

Decoenthusiast, Master Yoda and Gypsy are blonde and caramel.

I will admit being partial to leather, with my two hairy Australian Shepherds who love to cuddle. I do have a white slipcovered sofa in my sunroom, which is also their bedroom, so I have to keep a cover on it. Kind of messes up the look I was going for. Anyway, if you consider leather, here is a great deal on a contemporary, top-qualty sofa I think would look great with your rug, and follows the advice others have given you above.

Re: the upholstery color, I'd pick up one of the lighter blues from your rug for the sofa, then add a modern leather chair in a caramel color.

Deeinohio, don't we love our dogs!!! According to the link sent above by Maureen, leather does seem to be the best choice for pet owners. I do live in a hot environment though (Egypt). So, leather is not doable for me. But, the article also suggests microfiber. The grey suggested by you would look good with the kilim. Thanks!

Sabrina, Thanks fr the suggestions. What about the wood stain?

For the floors, you mean? I'd leave them alone. The lighter wood will give you a more Scandinavian feel.

Hard to suggest a coffee table and console without knowing your style and size of couch and colors you have decided on. Based on “airy“ 😀 perhaps white would be a good choice and select simple, clean lines. To achieve “cozy“ your rug, art, accessories will be the biggest factors and be sure to use the colors in your rug in your cushion choices to pull the room together. Good luck

Sometimes use of textures reads cozy.