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Analysis of Facilities Management Market in Middle East
Frost & Sullivan, November 2009, Pages: 82
The market for Facilities Management in Middle East is mainly driven by the magnitude of construction activities and the growing awareness about the advantages of using such professional services. The market generated revenues worth $ 3500 million in 2008, mainly contributed by the companies in the United Arab Emirates (UAE). This research service covers markets in the GCC including Bahrain, Kuwait, Oman, Qatar, UAE and Saudi Arabia.
This Frost & Sullivan research service titled Analysis of Facilities Management Market in Middle East provides an overview of the facilities management (FM) market and analyzes the competition prevailing among the companies. The study also offers a snapshot of opportunities prevailing in the market for the competitors. In this research, Frost & Sullivan's expert analysts thoroughly examine the following application sectors: industrial, healthcare, manufacturing, government and commercial segments.
Mammoth Construction Projects Ensure Stable Growth for the Facilities Management Market in the Middle East
The FM market in the Middle East has been growing in leaps and bounds, with multi-billion dollar construction projects fuelling growth. Multinational companies are setting a benchmark in terms of operations, bringing their facilities on par with international standards. Green building techniques, which involve professional maintenance of buildings are gaining traction and opening up new avenues for FM companies. As most end users lack the in-house expertise to handle professional facilities management, the scope for the FM market has widened. Another important driver is the transfer of risk to a third party. “The FM market in the Middle East is in the infancy stage when compared to other developed regions such as Europe and North America,” notes the analyst of this research service. “This creates abundance of opportunities, and the sheer size of construction happening is a testimony to the excellent future of facilities management in the Gulf region.” In the FM market, great stakes are placed on building owners’ knowledge of the potent advantages of outsourcing these services. Management services, when outsourced, allow the end-user to focus more on their core activities.
Despite the demand upswing for FM and its increasing popularity, the market was heavily impacted by the economic recession. Some construction projects have been shelved; and end users were skeptical about drawing up any new contracts. Companies are struggling to keep their costs low for long-term contracts. During 2008, the number of contracts equaled that of 2007 though the value of the contracts was small. Manpower cost is also a serious concern for FM companies. “Though manpower is in abundance in this region, the cost involved in recruiting and managing the workforce is quite high,” says the analyst. “This is mainly due to the immigrant workers whose work permit issues and accommodation are taken care of by the employers.” With labor laws getting stricter, manpower cost is continuing on an upward trajectory. End user perceptions of FM services are also clouding market prospects. Many end users and building owners consider FM services an extravagance as it overburdens their budget End-users have failed to understand that FM services enhance the lifecycle of a building and help reduce maintenance costs in the long run. Labor issues and inflationary pressures have been overcome by remodeled strategies and creating awareness about the monetary benefits of deploying professional FM services to contain maintenance costs. Inflation, a consequence of high oil prices, has been influencing the profit margins of many facilities management companies since the beginning of 2008. Reducing the consumption of natural resources such as water and power is another prominent issue that requires attention in this region.
Adapting to local market conditions and providing competitive pricing will be the special challenge for multinational companies that are keen on entering this arena. Considering the overall scenario, FM companies should unleash industry best practices to stay ahead in the market. FM companies should remain flexible in order to provide customized services to cater to the evolving needs of clients. Adopting advanced technology will help FM companies to add value based service and sign more lucrative contracts.
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By End-use Vertical:
- Commercial office space
- Government and public space
- Manufacturing and industrial facilities
1. Executive Summary
- 1.1 Introduction
- 1.2 Market Definition and Segmentation
2. Market Overview
3. Facilities Management Market Overview
- 3.1 Introduction
- 3.2 Market Engineering Measurements
- 3.3 Industry Challenges and Market Dynamics
- 3.4 Market Trends
- 3.5 Effective Market
- 3.6 Market Opportunities
- 3.7 Competitive Landscape
- 3.8 Regional Trends
- 3.9 Revenue Forecasts
4. Building Operations and Maintenance Services/Hard Services
- 4.1 Introduction
- 4.2 Market Engineering Measurements
- 4.3 Market Overview
- 4.4 Industry Best Practices
5. Support Services/Soft Services
- 5.1 Introduction
- 5.2 Market Engineering Measurements
- 5.3 Market Overview
- 5.4 Industry Best Practices
6. End-user Analysis and Trends
- 7.1 Success Factors
- 7.2 Recommendations
- 7.3 Company Profiles
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