The facilities management (FM) sector in Saudi Arabia, which represents 55 per cent of the GCC market, is growing at 13 per cent year on year and will be worth $29.1 billion by 2017, a report said.

The facilities management (FM) sector in Saudi Arabia, which represents 55 per cent of the GCC market, is growing at 13 per cent year on year and will be worth $29.1 billion by 2017, making it the largest FM market in the Middle East, a report said.

The FM in Saudi Arabia is currently worth $20.1 billion, explained Credo Business Consulting, a leading advisory services firm and MFFMA, a non-profit association, in a report ahead of FM Expo, a major industry event taking place from May 18 to 20 at Dubai World Trade Centre.

The forecast is based on new infrastructure projects coming online and a government initiative launched to improve the standards of FM.

“Trends in both private and public sectors suggest that it is poised to realize a higher potential and shed its historic low-cost low quality image,” said Alistair Stranack, Partner and Head of Credo Middle East.

“The fundamental economic drivers, coupled with the Government’s ambitious regulatory plans suggest to us that after many years of failing to deliver on its potential, the Saudi market is about to emerge into the giant it has always promised to be.”

The report also examined the challenges it faces during its development. Cost driven customers, where contracts are awarded to the lowest priced contractors is the biggest hurdle since it creates a false economy and detracts from the value that FM can add to a buildings life cycle.

Talent acquisition and training were also cited as barriers holding back industry development, as was a lack of regulation.

Mohammed AlDuraibi, CEO of Da'em Real Estate Investment Company and a MEFMA board member said this will change.

“Whilst current regulation has been a barrier to growth it can become a catalyst for development following a Saudi Government initiative to upgrade the quality of FM across its estate. Set up by Royal Decree, NCLOM will introduce international best practice in operations, cost control, monitoring and measurement and supplier accreditation,” he explained.

The report also breaks down development by sector, with real estate and healthcare to experience the highest growth rates to 2017 of 20 per cent and 17 per cent respectively.  Industrials will also benefit from continued efforts to diversify the economy away from oil and gas. – TradeArabia News Service