Report Description

UAE facility management market is expected to increase during the forecast period due to the UAE government being the largest sponsor of construction activities, particularly infrastructure projects, which would fuel the UAE Facility Management Market in the forecast period. UAE has emerged as one of the most popular tourist destinations in the world which has led to the development of modern skyscrapers, shopping malls, and theme parks. Such huge facilities demand dedicated services, such as cleaning, security, gardening, waste management, document management, and laundry, which will drive the growth of the UAE facility management market over the next few years.

Daily operations required to guarantee that a physical environment supports an organization's needs and fundamental function are known as facility management. Facility management comprises lease administration, accounting, planning, and management of capital projects, maintenance and operations, energy management, and many more.

UAE Facility Management Market: Drivers & Trends

Growth in Real Estate Sector

The UAE facility management market is majorly impacted by the growth of the real estate sector in the country. Strong and stable economic conditions coupled with liberal government policies such as providing Emirati citizenship and golden visas to investors and select ex-pats to allow 100% ownership of businesses to foreign nationals would significantly fuel the real estate sector in the country, particularly in Dubai and Abu Dhabi. This would increase the demand for facility management services, such as security, HVAC maintenance, and cleaning services, thereby boosting the UAE facility management market.

Sustainable Smart Cities Development

The UAE government aims to develop smart and sustainable cities to preserve the environment and to achieve a perfect balance between economic and social development. The facility management industry is benefiting from sustainable smart city projects by implementing automation and enhanced data-driven technologies. UAE is methodologically adopting smart city infrastructure to integrate the latest and sustainable technologies in the built environment, which in turn, is anticipated to aid the growth of the UAE facility management market during the forecast period.

Demand for Improved Facility Services

Companies in the UAE are outsourcing facility management and related services to streamline management and improve performance which will increase the demand for integrated facility management services. Moreover, large conglomerates have operational bases in UAE, and they demand improved soft services to manage their facilities across multiple locations. Single contracts from such organizations can hugely benefit facility management companies. The integration of innovation, technology, and upskilling in facility services will drive the UAE facility management market.

Rising Demand for Sustainable and Energy Efficient Green Building Solutions

To ensure the country's sustainable development, the UAE is encouraging the usage of eco-friendly solutions to cut down on energy consumption and lower the greenhouse effect. As a result, the nation is concentrating on creating green structures. The term "green building" refers to a structure and procedures that save resources and the environment throughout a building's entire lifecycle, from its design to its construction to its operation to its rehabilitation to its demolition. The Emirates Green Building Council (Emirates GBC) was established in 2006 with the mission of improving green construction practices for the country's sustainability and environmental protection. FM professionals in the UAE are well equipped and competent in greening existing buildings and can simultaneously lead a building to the path of achieving green building certification. Consecutively, Dubai received the Platinum Rating in the Leadership in Energy and Environmental Design (LEED) for Cities certification awarded by the US Green Building Council (USGBC) in 2019.

Government Projects & Initiatives

The government of UAE is launching various infrastructural developmental master plans that would predominantly increase the number of commercial and residential facilities across the country and therefore create opportunities for facility management players. For instance, Dubai’s 2040 mega-urban master plan would increase the potential market for facility management players as they will get involved at the envisioning stage of this master plan. This visionary master plan would have immense opportunities for automation, technology, and artificial intelligence in integrated facility management services offerings. Going with the simple estimate, it will require about a 300,000-strong FM workforce to support such a plan. Moreover, the facility management industry players need to raise their bar both in terms of quality and compliance through upskilling, automation push, setting processes, and building best practices and state-of-art supply chains.

Integration of Facility Management in Building Design

In UAE, facility management is being increasingly incorporated into the designing of buildings, which helps builders to construct buildings that can be easily maintained over a long period. Facility managers are consulted at the start of the design phase to provide feedback on the effective utilization of the project area, landscaping, fire and safety systems, and lifecycle cost analysis of the building. Over the lifecycle of a building, almost 80% of the total cost is incurred on facility management. Facility management in building design aims to reduce the total cost of these services over the building’s entire lifecycle. Furthermore, facility management integration helps the owners to easily manage and control the facility with the minimum disruption possible, thereby increasing the total life of the buildings.

Growing Usage of Integrated Workplace Management Systems

The integrated workplace management system (IWMS) aims at increasing the operational, environmental, and financial performance of facilities by managing real estate portfolios, maximizing capital projects, improving facility utilization, and reducing energy and other operational costs of facilities. Moreover, factors such as the increasing use of cloud computing and government mandates on technological advancements are further boosting demand for IWMS in the UAE Facility Management Market.

Increasing Usage of CAFM & BIM Software

Emerging technological developments in facility management are encouraging many corporate organizations to opt for automated building management solutions. Computer-aided facility management (CAFM) and building information modeling (BIM) software are witnessing increasing implementation in facility management and the real estate industry. These are the administrative tools that aim to develop and track the virtual models of building operations. Additionally, the adoption of IWMS to manage real estate portfolios will fuel the UAE facility management market during the forecast period.

Surging Demand for Cyber and Information Security Management

Modern facility management also includes IT, automated controls, and security against cyber-attacks. UAE government and businesses are constantly focusing on building efficient defense management against cyber-attacks. Factors, such as increasing internet penetration, rising cases of cyber-attacks, and surging use of IoT, are driving the demand for cyber and information security management in facility management services.

Age of IoT, Artificial Intelligence, and Smart Devices

IoT is increasingly gaining acceptance in the facility management industry as it improves the quality of services offered to customers. IoT in integrated facility management primarily involves the automation of building functions, such as air conditioning of buildings, ventilation, and automated security. IoT allows facility managers to undertake tasks that are considered hazardous or difficult for humans, thereby increasing the scope of integrated facility management. IoT coupled with Automation, Real-Time Data Analysis, and Machine to Machine Communication will help in predictive and condition-based maintenance which is anticipated to augment the demand for advanced facility management services and therefore, boost the facility management market in a tech-savvy country like UAE.

Massive Requirement for Initial Capital Investment

The country’s facility management industry is highly cost-driven, as it requires huge initial capital investment due to its high operational and maintenance cost. Furthermore, high labor costs and the incorporation of new-age technologies such as Integrated Workplace Management Systems (IWMS), Computer-aided Facility Management (CAFM), Building Information Modelling (BIM), and the Internet of Things (IoT) are also among the major factors leading to higher cost for facility management companies. Organizations need to understand the value of good facility management services, only then the UAE Facility Management Market can grow.

Lack of Skilled Workforce

Many professionals working in the facility management business do not have the required skill sets to deliver high-quality management services. Shortage of skilled labor, poor talent acquisition, and lack of proper training are the major challenges faced by the market players in this industry. As a result, the companies in UAE struggle to acquire well-qualified and capable staff in the market. Companies need to provide constant training programs to workers in the industry to overcome this challenge.