FM revenue to hit US $8 billion by 2013

Frost & Sullivan Research Analyst Suganya Rajan.

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The facilities management market is expected to be worth US $8 billion by 2013, according to a new report.

Statistics, compiled by Frost and Sullivan, show that the market earned revenues of over US $3.5 billion in 2008 and the overall facilities management sector in the GCC will grow at a compound annual growth rate of 18% over the next five years.

“The FM market in the Middle East is in the infancy stage when compared to other developed regions such as Europe and North America,” said Frost & Sullivan Research Analyst and author of the Middle East Facilities Management report 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.”

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The report said that the market growth rate slowed during the crisis and some new construction projects were put on hold and hence, developers were reluctant to sign facilities management contracts.

However, the industry is now expected to see significant growth rates.

"This is largely due to the demands from building owners who now expect an international standard of building management. Further, there is a renewed pressure on developers to be more sustainable and introduce a number of new technologies into the buildings. As a consequence the facilities management market in the Middle East is attracting many new entrants. Most of these are domestic conglomerates that are expanding their services portfolio," Rajan told Emirates Business 24/7.