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RELATED ARTICLES: Transguard wins FM contracts with Emaar and MAF; Maxxess brings access solutions to KSA; Imdaad to provide complete FM services at JLT
The facilities management market (FM) in the region is growing rapidly, according to Frost & Sullivan, though service providers face a number of challenges.
These include rising employment costs and erosion of profit margins.
Companies that can overcome these challenges will benefit from a market that will grow in value from US $3.5 billion in 2008 to $8 billion in 2013.
“The FM market in the Middle East is in the infancy stage when compared to other developed regions such as Europe and North America,” says Frost & Sullivan research analyst Suganya Rajan.
“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.”
Despite growing demand for outsourced FM services, Frost & Sullivan says companies are struggling to keep their costs down and preserve profit margins.
“Though manpower is in abundance in this region, the cost involved in recruiting and managing the workforce is quite high,” says Rajan.
“This is mainly due to the immigrant workers whose work permit issues and accommodation are taken care of by the employers.”
Adapting to local market conditions and providing competitive pricing will be the special challenges for companies keen on entering the market.
FM companies are therefore advised to embrace industry best practices and set up themselves up to provide customised and value added services.
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