Facilities management companies in the GCC can expect to see revenues grow at an average of 10% per year for the next two years, according to a new report.
A survey commissioned by the Middle East Facilities Management Association (MEFMA), found that growth drivers include the thriving construction sector and an expanded scope of work coming from existing clients.
It also found that the FM sector is likely to see further consolidation in the form of mergers and acquisitions.
Jamal Lootah, president of MEFMA, said: “We commissioned this report to showcase the immense potential of our region's FM industry and how FM companies today can play a significant role in sustaining this expected increase in revenues.
“True enough, the move towards further consolidating the FM market will also likely result in an increase in Mergers & Acquisitions--merging smaller FM companies with the larger and more reputable FM entities.”
He added: “These are truly exciting times for the GCC region's FM industry as experts have predicted that revenues will continue to grow at a compounded annual growth rate (CAGR) of 10 per cent in the next two years--further fuelled by the continuously increasing number of projects in the GCC and the expanded scope of work presented by existing FM clients.”
The MEFMA report indicates that local FM companies will focus on core services including MEP, HVAC, janitorial, clean energy management, firefighting, rope access, duct & water cleaning services.
The survey was completed by global consulting firm Protiviti and was conducted across 35 FM providers of varying workforce sizes across the UAE, Saudi Arabia (KSA) and Oman.