Wednesday 8 July 2020

UAE facility management market set for 8.5pc growth

NEW YORK, August 13, 2016

The facilities management (FM) industry in the UAE is expected to grow at a compound annual growth rate (CAGR) of 8.51 per cent between 2016-2021, according to a new report.

The facility management market in the country is anticipated to grow at a steady rate on account of huge infrastructure spending in the country ranging from residential to industrial sector, said the report by TechSci Research, a leading global market research firm.

The market will be driven by projects such as Abu Dhabi's emirate-wide Vision 2030, and Dubai Urban Development Master Plan 2020, it said.

"UAE Facility Management Market Forecast & Opportunities, 2021" report analyses the market of different types of facility management services and provides statistics and information on market sizes, shares and trends.

Due to hosting of World Expo in 2020 in Dubai, an amount of Dh8.174 billion ($2.22 billion) is estimated to be spent on infrastructure in the city. With six mega projects in the UAE namely Emirates roads master plan (to be completed by 2016), Etihad railway network (2018), Dubai Airport expansion (2018), Abu Dhabi Airport expansion (2017) Abu Dhabi Metro (2020), Dubai Metro expansion (2030) all together costing about $55.11 billion, the facility management market is going to measure a robust growth, it said.

Drivers and restraints
The rapid real estate and urban infrastructure development in terms of airports, roadways, ports and railways have resulted in increased demand for facility management industry.

The focus of the government to diversify its economy other than the oil sector has boosted the growth of facility management market. Apart from upcoming new buildings and infrastructure facilities, the maintenance of old buildings and facilities has provided opportunity for the facility management industry, it said.

Due to high standards laid down by the Middle East Facilities Management Association (Mefma) and the Real Estate Regulatory Agency (Rera), there has been stiff competition between the different facility management companies to lead in the market keeping in the view the best quality, practices and standards. Another biggest challenge faced by the facility management companies is overcoming inflationary issues in the region.

Based on type, the UAE facility management market is segmented into the following: Property services, cleaning, security, catering and support services, the report said.

Based on end-users, the market is segmented into the following: Industrial, commercial and residential markets.

Based on regions, the market is divided into the following: Dubai, Abu Dhabi, Sharjah and other Emirates

In the UAE, a bill to reduce new large building energy consumption by up to 30 per cent by 2030, has provided a new scope for the facility managers and real estate companies to design, build and maintain buildings in a sustainable way.

 At present, Dubai and Abu Dhabi are leading regions in the UAE facility market followed by Sharjah due to major portion of infrastructure investments and developments concentrated in the area. - TradeArabia News Service

Tags: UAE | Dubai | MAB Facilties Managment |

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