The UAE’s facilities management (FM) industry is set to register solid growth over the next five years with its revenue likely to hit Dh24.34 billion ($6.62 billion) by 2022 posting a robust double-digit CAGR (compound annual growth rate) of 12.5 per cent over the current Dh13.5 billion ($3.67 billion) revenue, said a report.
Compiled by a US-based business consulting firm involved in market research and growth strategy consulting, this report was commissioned by Imdaad, a Dubai-based integrated FM solutions provider with a strong presence in the GCC, to examine the market in the UAE and forecast future trends within the industry.
The report titled ‘High Level Overview of the UAE Facilities Management Market’ was officially launched during the 11th edition of FM Expo, the largest dedicated industry show in the Middle East, which opened today (September 25) at the Dubai World Trade Centre.
Organised by dmg events Middle East, Asia & Africa, FM Expo is co-located with The Big 5 Outdoor Design & Build Show, Windows, Doors & facades Event, and Gulf Glass and will run until September 27
The report revealed that UAE was in the ‘mature’ stage of FM industry and home to at least 100 active competitors of varying sizes, which are largely dominated by domestic companies owing low-entry barriers.
On the growth outlook, Imdaad said it is guided by numerous factors, such as the UAE’s strong construction growth in the lead up to Expo 2020 Dubai, greater affinity on part of project owners to outsource non-core activities and overall improvements in quality of services offered by FM entities, made possible by increased use of reporting software and greater transparency.
Abu Dhabi Economic Vision 2030 and 2030 Dubai Industrial Strategy are also anticipated to provide strong demand for FM services, added the report.
FM services, it stated, will gain prominence in the coming years as the UAE aims to enhance gains from economic diversification, balance economic growth with sustainable solutions as part of UAE Vision 2021, optimize energy consumption and integrate technology as a means to rein in cost-efficiency across the board.
Imdaad Group CEO Jamal Abdulla Lootah said: “The study is a major contribution to the UAE’s FM landscape, giving stakeholders such as senior officials, public servants and corporates access to a trove of data and insights that concern the industry.”
The report covers an array of key talking points, from hard facilities management to energy management verticals, and also contains informed recommendations that will serve as a reliable reference for important strategic decisions such as investments, hiring, assessing competition and for entering into new partnerships, he stated.
According to him, the report indicates that the UAE has a growing appetite for competitive and efficient FM services.
“The country’s incredible efforts in diversifying the economy, investments in infrastructure and ambitious deadline-driven construction projects have provided a fertile ground for FM services to take root and thrive. It is no coincidence that the industry is poised for a double-digit growth in revenues,” he noted.
“However, we must also heed the restraints cited in the report that restrict companies from exploiting full potential of FM services,” added Lootah.
The study pointed out that FM delivery and growth in the future will be determined by ‘adoption of technology’ and measured by ‘service efficiency’.
It reinforced the pressing need for local FM companies to deploy strategies that integrate technology in traditional services and make them more efficient in order to achieve higher savings and expand profit margins for FM providers and clients alike.
“Service and IT integration are expected to have the maximum level of adoption in UAE’s FM market. On the energy management front, sustainable solutions will be the key driver, and this will be supported new energy-saving regulations, Leed-certified buildings and the UAE’s march towards achieving increased building efficiency by 2030, it added.