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New Strata Law 'boosts FM business, leads to better buildings'.
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| 9 Apr 2008 |
The UAE’s facilities management market, estimated to be worth US$704 billion over the next 25 years, has been given a fresh boost by the recently expanded Strata or condominium Law, and will result in higher quality, better managed buildings, a new name in the FM business says.
James Garbutt, senior vice president and manager of new facilities management specialists Spectrum, says the company, along with many other FM operators, are capitalising on the introduction of the new legislation which rules that developers’ liability towards properties will remain for ten years after completion.
The Strata Law, which has been in effect at Dubai International Financial Centre since 2006, was recently extended to apply to all of Dubai. As a result, FM companies providing services such as building maintenance, operations, space management, energy management and communications infrastructure have experienced huge business growth as real estate companies, developers and unit owner associations seek to fulfil the requirements of the law.
Spectrum Real Estate Asset Management, a subsidiary company of Kuwait-based First Dubai Real Estate Development K.S.C.C, will officially launch Spectrum as a specialist FM company at FM Expo, the region’s only exhibition dedicated to facilities management, which takes place in Dubai from 8-10 June.
Sky Gardens - one of the buildings maintained by Spectrum.
“We are seeing a high demand for our services following the introduction of the Strata and Escrow Account legislation,” said Garbutt. “We formed only recently but have already secured several large instructions including nine towers in downtown Jebel Ali, a 60-storey tower on Sheikh Zayed Road and we are busy making arrangements for the operational management of Sky Gardens, DIFC which will soon be operational.”
Figures released earlier this year by Middle East Strategy Advisors (MESA) showed the FM industry in the Arabian Gulf to be worth an estimated US$892 billion over the next 25 years, the lion’s share of this being in the UAE, with the markets in Saudi Arabia and Qatar worth US$96 billion and US$92 billion respectively. The growth of the industry is reflected by the fact that FM EXPO, organised by Streamline Marketing Group, will be at least 50 per cent bigger this year compared with 2007.
Garbutt said: “As the market becomes more aware of the new requirements by law, they will see how our more strategic approach to FM can deliver competitive prices and add longer term asset value to the building. Spectrum Real Estate Asset Management has a fantastic opportunity to benefit from this legislation, which will lead to better quality buildings that are operated and run at higher performance levels,” Garbutt continued.
Accompanying the Middle East’s FM boom, FM Expo, taking place at Zabeel Hall, Dubai International Convention and Exhibition Centre, will bring FM companies together with the region’s real estate developers and property owners.
A two day ‘Property & Facilities Management Conference’ will run alongside the exhibition, featuring representatives from two leading Strata Law companies in Dubai, Peter Crogan, CEO, BCS Strata Management and Adrian Quinn, Executive Chairman, Essential Strata Management. They will explain the new Strata Law, its regulations and its impact on both developers and the FM industry.
Agata Pawlik, Project Manager, Streamline Marketing Group said: “The FM industry is still relatively new in this region, but is quickly gaining recognition in real estate circles, especially in light of the new condo laws. FM Expo will give real estate developers a unique opportunity to see how this law affects them and what options are available in regards to FM services, companies and supplies.”
The exhibition attracts leading companies from property management, energy management, environment, maintenance, IT, health and safety, and security in the Middle East, Europe and worldwide.
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