POISED FOR GROWTH

Oil and Gas - - SPOTLIGHT -

Over the years, the GCC re­gion has ex­hib­ited a no­table in­crease in de­mand for out­sourced FM op­er­a­tions, thus fur­ther cul­ti­vat­ing the re­gional mar­ket’s growth and ex­pan­sion. Ev­ery day new ser­vice providers are en­ter­ing the mar­ket to vie for a share of the out­sourced FM mar­ket.

The projects un­der Abu Dhabi’s emi­rate-wide Vi­sion 2030 and Dubai’s Ur­ban De­vel­op­ment Mas­ter Plan 2020 are par­tic­u­larly im­mense and are set to fur­ther fuel and en­hance the lo­cal economies, along with the FM sec­tor, ac­cord­ing to Im­daad.

The UAE’s fa­cil­i­ties man­age­ment

(FM) in­dus­try is ex­pected to grow at a com­pounded an­nual growth rate of 8.51% be­tween 2016 and 2021, largely driven by mas­sive projects de­vel­oped in sup­port of the ob­jec­tives out­lined in the UAE Vi­sion 2021, Im­daad said.

The re­gion’s FM sec­tor gi­ant, which was part of a re­cent sur­vey of the Mid­dle East’s FM sec­tor con­ducted by the Bri­tish In­sti­tute of Fa­cil­i­ties Man­age­ment, said the sur­vey re­sults showed that 36% of re­spon­dents would be solely out­sourc­ing their FM ser­vices, while a con­sid­er­able 60% ex­pect more out­sourc­ing of FM op­er­a­tions in fu­ture.

Out­sourc­ing in FM is con­tin­u­ously gain­ing wider trac­tion thanks to the grow­ing trend among busi­nesses across sec­tors to re­duce their over­heads, while spurring their pro­duc­tiv­ity, pro­tect­ing their mar­gins and lever­ag­ing niche ex­per­tise, Im­daad said in a state­ment.

Point­ing to a pro­jec­tion by Frost & Sul­li­van, the state­ment added that the global out­sourced FM in­dus­try will be worth $1 tril­lion by 2025. Out of this to­tal rev­enue, other stud­ies state that the share of bun­dled and in­te­grated ser­vices is fore­casted to hit an im­pres­sive 35% mark. The pop­u­lar­ity of out­sourced FM comes as no sur­prise as FM sup­port typ­i­cally lessens costs by up to 20%, Im­daad added.

Point­ing to the global trends, Im­daad said the growth of the FM mar­ket in the re­gion mir­rors devel­op­ments in the sec­tor through­out the world, which has seen the sec­tor evolve from an in-house ser­vice to a boom­ing in­dus­try. Cit­ing a mar­ket re­search re­port re­leased by Global In­dus­try An­a­lysts in July, the state­ment added that the in­dus­try is ex­pected to reach $394 bil­lion glob­ally by 2017, with in­te­grated fa­cil­i­ties man­age­ment as the fastest grow­ing seg­ment. Enor­mous growth in con­struc­tion, tourism and health­care in­dus­tries in Oman will in­crease the de­mand for FM ser­vices. Ad­di­tion­ally, 9th Year De­vel­op­ment plan, 2016-2020 will trig­ger the de­mand of FM ser­vices ow­ing to the in­crease in in­fra­struc­ture projects which will have a pos­i­tive im­pact on the mar­ket.

With the con­tin­ued growth and de­vel­op­ment planned for the Mid­dle East, it cer­tainly is an ex­cit­ing time for the Fa­cil­i­ties Man­age­ment in­dus­try. While the in­dus­try is at the fore­front of de­vel­op­ment, there is need for a col­lec­tive voice and strat­egy in or­der to in­flu­ence reg­u­la­tion, train­ing and in­no­va­tion.

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