What is facility management and why the sudden boom?

October 18, 2017 7:00 am


What’s more important than building projects is the post-construction phase of maintaining them, whether these are residential, commercial or even industrial buildings.

With facility management (FM), some tenants are more interested in security, others in cleaning services, or proper landscaping, HVAC equipment maintenance, etc.

According to research company TechSci, the UAE Facility Management Market is to grow at 9% during 2016 – 2021.

The value of FM services in the country was estimated at $11.26bn in 2016, and was expected to reach $12.5bn in 2017 and up to $17bn in 2021.

Meanwhile, the Middle East Facility Management Association (MEFMA) has forecast that the value of Saudi Arabia’s facility management market is expected to reach $49.8bn by the end of 2030.

Read: Dubai makes room for construction of new hotels 

KSA’s FM market growing

MEFMA recently estimated in 2017 that Saudi accounted for 55 per cent of the entire Middle East FM sector, with the local market’s value currently standing at $20.3 billion.

“The expected growth can be attributed to key drivers that include steadily booming real estate, tourism, and retail sectors as part of Saudi Vision 2030,” said the MEFMA report.

UAE’s market booming

The 2011-2021 TechSci Research on the UAE market revealed that construction projects worth $629 billion had a 2021 completion date, which would ultimately drive growth in FM.

Construction spending in the UAE in 2016 is estimated at $43.74bn and is to grow to $46bn in 2017, according to the research.

Read: GCC’s $51 billion construction market attractive to Brazilian investors

The report expects consolidation in the market through mergers and/or acquisition transaction between integrated service providers or Tier-I and bundled service providers or Tier-II providers.

“For instance, in 2017, UAE-based facilities management (FM) provider, Imdaad, announced investment of $16 million for the acquisition of small players, said the report.

Dubai is ready to host Expo 2020, which is helping combine the valuation from tourism and aviation activities in the Emirate to $53 billion by 2020, boosting FM services in those sectors.

According to the World Travel & Tourism Council (WTTC), the contribution of tourism in UAE’s GDP is set to reach $64.47bn by 2026.

Read: Dubai to award $3 billion construction contracts for Expo 2020

Key project wins announced

EFS Facilities Services, a main player in the UAE market as an integrated total service provider for FM, announced in 2017 that the company secured contracts worth AED1bn ($272m) across its operating regions.

The company said that it was awarded key contracts in the UAE, Saudi Arabia, Qatar, Jordan, and Egypt, for both public and private sector clients operating in various industries, such as education, master communities, residential, and commercial entities

Farnek, another prominent UAE-based total integrated facility management company, announced that it was awarded a two-year contract to provide cleaning services for RAKBANK.

Geoff Stecyk, RAKBANK COO, commented: “We especially appreciate the company’s commitment to the environment by using sustainable cleaning materials and products wherever possible.”

Farneek, which services Dubai International Financial Centre (DIFC), boasts a large banking client portfolio that includes Standard Chartered Bank, Al Hilal Bank, the National Bank of Abu Dhabi (NBAD), UAB, Mashreq Bank and Abu Dhabi Islamic Bank (ADIB).

The company has also announced a three-year contract win, worth over AED10 million ($2.72m), to provide cleaning services, MEP maintenance and contact centre staff and services for Dubai Parks and Resorts, as well as a 15-month MEP contract for IMG Worlds of Adventure, Dubai’s newest adventure park, which was launched last September.

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By Hadi Khatib
Hadi Khatib is a business editor with more than 15 years' experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about it.



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