Building Management Systems in the Middle East a Growth Market
ABU DHABI, July 22 /PRNewswire-AsiaNet/ --
"Total facilities management market estimated to top $576 Million by 2012" -
Fountain
Boosted by the boom in commercial, retail and residential sectors and a strong demand for
total facilities management (TFM), the regional market for bundled and total facilities
management in the Middle East is expected to grow at a CAGR of 19.3% to cross USD $576
Million* according to UK's CMPi, organizers of Working Buildings Middle East, which is
scheduled to take place at the Abu Dhabi National Exhibition Centre on 17th and 18th November
2008.
"While the boom in construction is fuelling the growth, the main demand is
from the luxury hotels and Multinational Corporations (MNCs) that are pushing
the momentum in the Gulf region," noted Chris Fountain, Group Director of CMPi.
Mr. Fountain added that TFM in the region was historically taken into account only upon the
post-construction stage of projects. "In recent times
however, developers are starting to acknowledge the importance of integrating
TFM at the earliest stage possible in order to prevent problems before they actually occur and
hence TFM companies are now involved in the design stage of
construction projects," he stressed.
"In the past, key decision makers were generally disinclined to consider
total lifecycle costs and chose quick returns on investments and this
reflected in the short-term duration of TFM contracts; this is however
changing now and makes our event a timely platform for global TFM providers to
seek lucrative contracts in the region," Mr. Fountain observed.
The GCC region's investment in tourism, retail and business services has
led to the massive growth in the construction of new high-end commercial, residential and retail
establishments. Multibillion dollar mega-projects that
involve mixed use of these sectors also exist in the region, the ownership structure of which
normally involves consortia of MNCs and governments. Together with the extreme weather
conditions that shorten the lifespan of
buildings, these new developments open up opportunities for high-quality
facilities management.
"The introduction of Freehold Property Laws in the region, and the
subsequent establishment of Building Committees have made property owners more
conscious in maintaining their properties and Multinational Corporations
(MNCs) and branded hotel chains that have entered the region have
internationally renowned service quality levels, and are helping to raise the
standards of FM," Mr. Fountain added.
At present, most of the opportunities lie in the emirates, where although
Dubai is still the largest and one of the fastest growing markets in the
Middle East, Abu Dhabi is rapidly picking up. Abu Dhabi is also investing in
top-end hotels, cultural and recreational facilities to support its ambitious
tourism targets, presenting attractive opportunities for Total FM.
Another emerging market is Qatar. Growth is expected from the relaxation
of property laws, which now allows foreign nationals to own freehold title to
any real estate, and the attempt to diversify the country's economy away from
oil. The 2006 Asian Games in Doha helped to stir commercial and residential developments in
the country. Mega-development projects are also underway. However, the region is still largely
dominated by single-service maintenance
contractors.
Bahrain is the region's financial centre and offers a long-term potential
for the Total FM sector because of the country's diversification into tourism,
retail and business service sectors.
Opportunities for the Total FM sector in Oman and Kuwait are lower at the
moment, since these countries' real estate and construction sectors are not as
developed compared with the rest of the GCC countries. In the past most of the
projects were in the public sector and funded by the government.
Working Buildings Middle East will provide a valuable opportunity for local and international
companies to showcase their products and services to
the increasingly important Middle East market. The new event has been designed
to target all those involved in the management and maintenance of buildings and property.
Working Buildings Middle East will explore the latest products,
services and best-practice examples relating to the complete life cycle of a
building.
*The research on bundled & TFM for the ME region has been conducted by Frost & Sullivan
on behalf of CMPi
SOURCE CMPi UAE Ltd
/CONTACT: Integrated Identity, +971-4-3124496, or Fax, +971-4-3124497, info@integrated-
identity.com/
Photo Desk, photodesk@prnewswire.com/
NEWS 
