Market Research Report : Facilities management market in gulf cooperation council 2015 - Sample

Facilities Management Market – Gulf Cooperation Council

April 2015

2

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 & Challenges

Competitive Landscape

Drivers – Construction boom in GCC

– Growth in retail

– Growth in real estate

– Upcoming events

Challenges

– Budgetary pressure

– Lack of skilled labour and cultural difference

– Unsophisticated contract and delivery mechanism

Strategic Recommendati

ons

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

Player 1 Player 2 Player 3

Player 4 Player 5 Player 6

FACILITIES MANAGEMENT MARKET IN GCC 2015.PPT

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•Introduction

•Market Overview – GCC

Qatar

Bahrain

UAE

•Drivers & Challenges

•Competitive Landscape

•Strategic Recommendations

•Appendix

FACILITIES MANAGEMENT MARKET IN GCC 2015.PPT

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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

•Provide advice on efficient use of building space

•Strategic property plan

•Managing facility resources and services to support the operations of an organization

•Reducing operating costs within the business

•Broad range of property and business related support responsibilities that have an impact on a business on a continuous basis

Modern Definition

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 sector in the GCC is expanding

owing to large pool of properties that require

maintenance along with sustainable solutions

• 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

• 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

Facilities Management Market – GCC

USD bn

X%

2018e

f

2017e

e

2016e

d

2015e

c

2014

b

2013

a

Market Size & Growth

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SAMPLE Facilities Management – GCC Snapshot (1/2)

Supplier Margins Segmentation (2014)

Margin

Margin

Before Recession

2014

In-House

Outsourced

FACILITIES MANAGEMENT MARKET IN GCC 2015.PPT

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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:

0

10

20

30

40

50

60

70

80

90

100

f

2038e

b1

2013

a

a1

f1

2033e

e1

2028e

d

d1

2023e

c

c1

2018e

b

Unit %

Facilities Management Cost

Initial Development Cost

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

FACILITIES MANAGEMENT MARKET IN GCC 2015.PPT

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SAMPLE … tremendous infrastructural development aided with major upcoming events in the country

Market Size & Growth

0

X%

2018e

USD bn

f

2017e

e

2016e

d

2015e

c

2014

b

2013

z

Y%

X% In-House

Outsourced

• 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

Facilities Management Market – Overview (2/2)

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SAMPLE Facilities Management in Bahrain has not developed compared to the other nations in the region

• 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

Facilities Management Market – Overview Market Size & Growth

0

USD bn

X%

2018e

f

2017e

e

2016e

d

2015e

c

2014

b

2013

a

Y%

X%

In-House

Outsourced

FACILITIES MANAGEMENT MARKET IN GCC 2015.PPT

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SAMPLE Prodded by construction growth, facilities management market in the UAE is considered as the most matured one

• 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

Facilities Management Market – Overview Market Size & Growth

• 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

• Smaller players are said to be not adequately

capitalized and may have insufficient expertise or

limited staffing ability

X%

Y%

In-House

Outsourced

0

z1

2018e

f

2017e

e

2016e

d

2015e

c

2014

USD bn

b

2013

a

FACILITIES MANAGEMENT MARKET IN GCC 2015.PPT

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Drivers & Challenges – Summary

Drivers

Construction boom in GCC

Growth in retail

Growth in real estate

Upcoming events

Challenges

Budgetary pressure

Lack of skilled labour and cultural difference

Unsophisticated contract and delivery mechanism

FACILITIES MANAGEMENT MARKET IN GCC 2015.PPT

12 FACILITIES MANAGEMENT MARKET IN GCC 2015.PPT

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)

Key People

Business Highlights (1/3)

Company Information Products & Services

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation Name Designation

Category Products/Services

Services

Others

Description News

Overview

FACILITIES MANAGEMENT MARKET IN GCC 2015.PPT

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SAMPLE Strategic Recommendations (1/3)

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Thank you for the attention The Facilities Management Market – Gulf Cooperation Council 2015 report is a part of Netscribes’ Retail and Services Series. For more detailed information or customized research requirements please contact:

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FACILITIES MANAGEMENT MARKET IN GCC 2015.PPT