New strata law has given a boost to the UAE’s facilities management market, estimated to be worth $704 billion over the next 25 years.

James Garbutt, senior vice president and manager of new facilities management specialists Spectrum, 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 10 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, the company said in a statement.

Spectrum Real Estate Asset Management, a subsidiary company of Kuwait-based First Dubai Real Estate Development, will officially launch Spectrum as a specialist FM company at FM Expo, the region’s only exhibition dedicated to facilities management, which will take place in Dubai from June 8-10.

“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.

“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,” said Garbutt. – TradeArabia News Service