I've never seen an actual name of the material. It has the look of Dakota leather (pebbly ? for lack of a better word), but I don't know if it is actual leather.It's definitely not plastic, like the X5/X6 as, like you said it has stitching, and you can see that it is a sheet of material covering it. It's not alcantara - the suede-like material used on the M Sport roofliner.
I guess it is either Dakota or some type of synthetic leather material.
The first is a close-up I took at the dealership of the non-Nappa, and the second is mine with Nappa and contrast stitching:
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