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FM market in UAE to expand 8.5% annually, says survey

Increase in outsourced facilities management services to boost industry growth, says regional major Imdaad

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The UAE’s facilities management (FM) industry is expected to grow at a compounded annual growth rate of 8.51% between 2016 and 2021, largely driven by massive projects developed in support of the objectives outlined in the UAE Vision 2021, according to Imdaad.

The region’s FM sector giant, which was part of a recent survey of the Middle East’s FM sector conducted by the British Institute of Facilities Management, said the survey results showed that 36% of respondents would be solely outsourcing their FM services, while a considerable 60% expect more outsourcing of FM operations in future.

Outsourcing in FM is continuously gaining wider traction thanks to the growing trend among businesses across sectors to reduce their overheads, while spurring their productivity, protecting their margins and leveraging niche expertise, Imdaad said in a statement.

Over the years, the GCC region has exhibited a notable increase in demand for outsourced FM operations, thus further cultivating the regional market’s growth and expansion, it added. The projects under Abu Dhabi’s emirate-wide Vision 2030 and Dubai’s Urban Development Master Plan 2020 are particularly immense and are set to further fuel and enhance the local economies, along with the FM sector, Imdaad said.

Pointing to a projection by Frost & Sullivan, the statement added that the global outsourced FM industry will be worth $1 trillion by 2025. Out of this total revenue, other studies state that the share of bundled and integrated services is forecasted to hit an impressive 35% mark. The popularity of outsourced FM comes as no surprise as FM support typically lessens costs by up to 20%, Imdaad added.

Jamal Abdullah Lootah, CEO, Imdaad, said: “The public sector has lent its support to several developments that reflect its commitment to promote innovation and sustainability, and has thus cultivated stronger ties with the private sector. In fact, the UAE government announced in February that most government tasks would be outsourced to the private sector – providing a major boost to regional and multinational service providers such as Imdaad. This is a positive mood that we are certain will drive growth in the market to ensure that the country meets its long-term goals.”

Pointing to the global trends, Imdaad said the growth of the FM market in the region mirrors developments in the sector throughout the world, which has seen the sector evolve from an in-house service to a booming industry. Citing a market research report released by Global Industry Analysts in July, the statement added that the industry is expected to reach $394 billion globally by 2017, with integrated facilities management as the fastest growing segment.

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