Facilities management industry valued at US$892 billion in Gulf Region.

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3 Feb 2008

Research indicates that the facilities management (FM) market in the Arabian Gulf will be worth an estimated US$892 billion over the next 25 years.

The figures released by Middle East Strategy Advisors (MESA) show that the FM industry in the UAE alone is potentially worth US$704 billion, with the markets in Saudi Arabia and Qatar worth US$96 billion and US$92 billion respectively.

The region’s only exhibition dedicated to facilities management, FM EXPO, has almost doubled in size with a 70 per cent increase from last year, reflecting the rapidly growing importance of the market. Organised by Streamline Marketing Group and dmg world media, this year’s FM EXPO will also have a large international presence with exhibitors from Germany and Australia, as well as a UK pavilion.

Facilities management is still a relatively new concept in the Middle East yet experts predict that the industry will eventually outstrip the region’s booming construction business.

Facilities Management is valued at US$892 billion over the next 25 years.

Agata Pawlik, Project Manager, Streamline Marketing Group said, “Facilities management is gathering more attention as new mega construction projects are being developed and this requires the early involvement of the FM in development projects. Proper strategy and planning at the outset of a project significantly reduces life cycle costs and leads to a building’s sustainability.

“It is essential that developers have an adequate life cycle cost estimation, as the initial development costs are a fraction of the total costs of a building over time. More property owners and developers are realising that FM is an industry that provides essential input to complex property management. FM Expo provides an arena for property professionals to learn about the new and innovative FM solutions available to them,” Pawlik said.

Experts in the field estimate that in the life cycle of a building, the design and construction phase only accounts for 20 per cent of the overall costs, with the remaining 80 per cent being taken up by the operation, maintenance and management of the facilities.

Furthermore, the rate of development and new property laws are steering the sector to an integrated approach. A significant number of new facilities management companies are launching their Integrated Facilities Management systems.