The facilities management market is expected to be valued at $400 billion by the end of this year with the highest growth coming from emerging markets in the GCC region.
I believe the UAE FM market is the most progressive in the region and is expected to grow by 9% this year alone. This is due to the continuous demand arising from residential, commercial, hospitality and infrastructure sectors with potential opportunities arising within education, healthcare, and retail.
However, experts have predicted that the KSA market will overtake the UAE as the largest FM market this year and is estimated to be worth around AED 110bn. The KSA market has seen an annual growth of 10-11% and is expected to grow even further this year due to market drivers such as government initiatives, growing requirements for housing, reduction of overheads, outsourcing FM services, an evolution of technology, awareness of TFM solutions and projects nearing completion.
At the moment, the GCC market as a whole is trailing behind developed FM markets in Europe and the US. The companies from those markets are introducing operations in the MENA region focusing on soft services such as small maintenance, cleaning and landscaping and eventually expanding further into the hard services that require more technical expertise. On the other hand, the major players in the region are securing their revenue pipeline by winning contracts in developing markets like Saudi Arabia and Qatar.
The emphasis this year will be on outsourcing FM services and implementing FM strategy from the inception of projects with the importance of providing quality of services and sustainability going forward due to increasing regulation to adopt green practices. It will be interesting to see how FM companies handle these challenges while for some it would be viewed as an area of opportunity. In conclusion, the FM industry is growing regionally and globally hence emphasis is placed on recruitment for talent with technical expertise and the focus towards training to respond positively to the growing demand. The next few years is expected to be positive for the FM industry driven by growth in the region.
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