Facilities Management Market – Gulf Cooperation Council April 2015
Executive Summary
Market
Facilities management services in the GCC region is slated to grow at x% CAGR over 2013-18e Though a considerable proportion of the services is being outsourced, the concept of outsourcing is still nascent The UAE and Saudi Arabia is expected to show profound growth in the coming years compared to the other nations in the region
Drivers Drivers & Challenges
Strategic Recommendati ons
Challenges
– Construction boom in GCC – Growth in retail – Growth in real estate – Upcoming events
– Budgetary pressure – Lack of skilled labour and cultural difference – Unsophisticated contract and delivery mechanism
Need for accreditation and benchmarking Smart buildings with sustainability quotient a key determinant for facilities management Government should look at introducing long term contracts Professional qualifications and training imperative for industry participants Major Players
Competitive Landscape
Player 1
Player 2
Player 3
Player 4
Player 5
Player 6
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•Introduction •Market Overview – GCC Qatar Bahrain
UAE
•Drivers & Challenges •Competitive Landscape
•Strategic Recommendations •Appendix
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Facilities Management – Definition •Facilities management is the integration of processes within an organization to maintain and develop the agreed services which support and improve the effectiveness of its primary activities
Objectives
•Reducing operating costs within the business
•Provide advice on efficient use of building space
•Managing facility resources and services to support the operations of an organization
•Strategic property plan
Modern Definition
•Broad range of property and business related support responsibilities that have an impact on a business on a continuous basis FACILITIES MANAGEMENT MARKET IN GCC 2015.PPT
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Facilities management in the GCC region is expected to show profound growth in the coming years Facilities Management Market – GCC • Facilities management sector in the GCC is expanding owing to large pool of properties that require maintenance along with sustainable solutions
Market Size & Growth
USD bn
• There are multiple stakeholders that stand to benefit from the increasing use of facilities management, including residents, building owners, government, service providers and the society at large • There is an emerging trend in the market towards shifting from fixed costs to variable costs to increase flexibility of resources when needed
f e
X% d c b a
• Players are aiming to ensure sustainable FM initiatives which focus on the delivery of an integrated model capable of satisfying the changing trends Sustainability of conventional building maintenance frameworks is becoming extremely important
• FM practitioners are gradually beginning to take a more significant role as developers become more aware of the relevance of employing highly competent FM professionals in the initial stages of processes
2013
2014
FACILITIES MANAGEMENT MARKET IN GCC 2015.PPT
2015e
2016e
2017e
2018e
5
SAMPLE
Facilities Management – GCC Snapshot (1/2) Supplier Margins
Segmentation (2014) Outsourced
Margin
In-House
Before Recession
Margin
2014
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A macro perspective of the total life cycle cost of construction projects over the next 25 years Over the next 25 years:
Facilities Management Cost Initial Development Cost
Unit % 100 90 80 70
f1
60
e1
50
d1
40
b1
30
c1
20
a1
10
a
b
c
d
2013
2018e
2023e
2028e
f
0
2033e
2038e
In the next 25 years, total cost of any constructional development will be divided between 2 essential components namely the development cost and facilities management cost wherein facilities management cost will be x% of the total life cycle cost of the construction of the project
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SAMPLE
… tremendous infrastructural development aided with major upcoming events in the country Facilities Management Market – Overview (2/2)
Market Size & Growth USD bn f
e
X% d
• One of the major challenges faced in Qatar is that of low awareness • International companies operating out of Qatar provide a strong customer base but many end-users have still not opened to the concept of outsourcing facilities management services • However, need of the hour is energy conservation and pragmatic solutions that reduce energy costs • Major construction developments that may present a higher carbon footprint are putting pressure on developers to balance carbon emissions during the lifecycle of the building
c z
b
0 2013
2014
2015e
2016e
2017e
2018e
Outsourced In-House X%
Y%
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SAMPLE
Facilities Management in Bahrain has not developed compared to the other nations in the region Facilities Management Market – Overview • Facilities management in Bahrain is still considered to be at its infancy when compared to other developed neighboring nations like Qatar and the UAE • However, rise in construction in the country is slated to change the landscape and provide abundant opportunities for growth • Presently, the sector in the region is fragmented and a growing awareness for facilities services requires the establishment of trusted supply chain mechanisms • In Mar 20.., the government announced that it is looking forward to resolve issues which have brought a number of high-profile infrastructural developments to a halt • This is expected to give a thrust to the construction sector thereby posing as a prospective opportunity for facilities management sector • An amount of USD x bn has been set aside for infrastructure projects that will also call for facilities management services
Market Size & Growth USD bn f X%
e d
a
b
2013
2014
c
0 2015e
2016e
2017e
2018e
Outsourced In-House X%
Y%
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Prodded by construction growth, facilities management market in the UAE is considered as the most matured one
SAMPLE
Facilities Management Market – Overview • Boom in construction is driving the facilities management market in the country • The market has directed itself away from the segmented services such as maintenance, cleaning and security towards integrated facilities management solutions • The UAE has been considered as the most matured FM market in the GCC region
Market Size & Growth USD bn
f z1
e d
a
b
c
0 2013
• Though an increasing number of players are entering the FM market in UAE, yet not all are sufficiently equipped to meet the elevated benchmarks of the global FM industry
2014
2015e
2016e
2017e
2018e
Outsourced In-House X%
• Smaller players are said to be not adequately capitalized and may have insufficient expertise or limited staffing ability
FACILITIES MANAGEMENT MARKET IN GCC 2015.PPT
Y%
10
Drivers & Challenges – Summary
Challenges Drivers
Budgetary pressure
Construction boom in GCC
Lack of skilled labour and cultural difference
Growth in retail
Unsophisticated contract and delivery mechanism
Growth in real estate Upcoming events
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Qatar
Bahrain
UAE
• Presence in each of the countries is highlighted in the following slides through this ticker • In case, a company has presence only in the UAE, the third box is highlighted and if it has presence in all the countries then all the three boxes are highlighted
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Player 1 - (1/3) Company Information
Products & Services Category
Corporate Address
Products/Services
Services Others
Tel No. Fax No. Website
Key People
Year of Incorporation
Name
Designation
Business Highlights (1/3) Description
News
Overview
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Strategic Recommendations (1/3)
SAMPLE
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