New Strata Law boosts FM business
Dubai, April 9, 2008
The UAE’s facilities management market, estimated to be worth $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.
Senior vice-president and manager of new facilities management specialists Spectrum James Garbutt said 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 the 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 fulfill the requirements of the law.
Spectrum Real Estate Asset Management, a subsidiary company of Kuwait-based First Dubai Real Estate Development KSCC, 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 June 8 to 10.
“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 $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 $96 billion and $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.
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.
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. – TradeArabia News Service