Huge Growth Opportunity in Saudi Arabias USD 20-Billion Facilities Management Sector, Says MEFMA
The facilities management(FM) market in the Kingdom of Saudi Arabia (KSA) remains a mostly untapped market, an 'emerging giant' that uses substantial growth chances for regional FM players wanting to increase and introduce on their services in the Kingdom, highlighted experts from the Middle East Facilities Management Association(MEFMA) which held a workshop and networking event recently in Riyadh, which was sponsored by Advanced Facilities Management.
The MEFMA Report "FM in Saudi Arabia - an Emerging Giant has actually disclosed that the Kingdom continues to hold the biggest share in Gulf FM spending, making up about 55 per cent of complete expense. Although the KSA market is presently valued at USD 20 billion, it is still considered to be creating in terms of percentage to the country's structure framework advancement, and is identified as based on workforce supply solutions and low-grade building maintenance. MEFMA has actually estimated that under one-third of the FM need mainly originates from the general public industry which is counting heavily on outsourced services.
The workshop, led by Ali Al Suwaidi, MEFMA Board of Director, reviewed different FM issues under the theme 'Handover in Mega-Projects' and the locations for growth within these projects. As an example, Saudi Arabia's housing market is poised for development as more projects come online complying with the federal government's critical move to increase the field, considering 52 percent of Saudi citizens to end up being home owners by 2020 according to the Saudi Vision 2030 plan. These tasks would need FM solutions in order to preserve the sustainability of the facilities.
On the sidelines of the workshop, MEFMA likewise held a forum and networking event themed Total Cost of Ownership in FM in Saudi Arabia, with visitor speakers Dr. Talal A. AlHarigi from the National Training Facility for Facilities and Hospitality Administration (FHM), Abdulaziz Al Omair from Tatweer Structures Company, Musad Aldaood from Tamam, and Saleh Al Rajhi from Advanced Facilities Administration. The occasion was moderated by MEFMA Board Director Aiyd Al-Qahtani.
Jamal Abdullah Lootah, President of MEFMA, commented: "Saudi Arabia's FM field is swiftly creating as more properties go online in the Kingdom. The regional industry has actually observed the various Saudi market characteristics, with the general public sector counting heavily on outsourcing solutions while the private sector has the tendency to try out internal management making use of typical workforce solutions, rather than obtaining fully-integrated FM remedies. We are certain the time is ripe for established regional FM service providers to refresher course the trends in the country."
MEFMA highlighted that GCC-based FM clients in recent years have started welcoming international patterns which favour longer agreements with their FM service providers prolonging from three to five years, as well as the demand to include more specified output-based targets within their agreements. These trends are extra visible in established markets such as Dubai and are significantly being adopted in Abu Dhabi and Doha. The organization connected such adjustments to technical developments as the key enabler, specifically its impact on efficiency, solution high quality and openness - key factors that put weight on the substantial payment of the FM field to the regional economy.
