Tech Drives Booming Facility Management Sector in the UAE

EVER wondered how businesses keep their facilities running smoothly and efficiently? The answer lies in the crucial role of facility management, which ensures that buildings and infrastructure are well-maintained and operating at their best. Facility management involves overseeing the maintenance, security, and overall operations of a building or facility. This field encompasses a wide range of tasks, from managing utilities and coordinating maintenance schedules to ensuring compliance with safety regulations.

WHAT IS FACILITY MANAGEMENT?

Facility or facilities management (FM) is a profession dedicated to supporting people. It ensures the functionality, comfort, safety, sustainability, and efficiency of the buildings we live and work in, as well as their surrounding infrastructure. According to ISO and adopted by IFMA, “Facility Management is an organisational function that integrates people, place, and process within the built environment to improve the quality of life and the productivity of the core business.”

This blend of responsibilities supports the operations of each organisation, creating an environment where systems work together seamlessly. Facility management is utilised across nearly every sector to handle a diverse array of buildings and facilities. This includes office buildings, manufacturing plants, industrial facilities, laboratories, retail spaces, healthcare facilities, educational facilities, and much more.

Effective facility management is vital for the success of any business. By managing facilities effectively, organisations can boost productivity, cut operational costs, and create a safe and comfortable environment for both employees and customers.

UAE FACILITY MANAGEMENT MARKET POISED FOR GROWTH

The UAE Facility Management Industry is segmented by services (hard services and soft services), type (in-house, outsourced single, bundled, and integrated FM), and end-users (commercial & retail, manufacturing & industrial, government, infrastructural & public entities, institutional), and by cities.

According to a report by Mordor Intelligence, the UAE Facility Management Market is projected to grow from $7.62 billion in 2024 to $10.53 billion by 2029, at a CAGR of 6.68 per cent. This growth is primarily fuelled by the expansion of tourist-oriented infrastructure like railways, airports, and hotels, alongside stringent safety, cleanliness, and hygiene regulations in the UAE. The growth in the country’s tourism sector and increasing investments in the construction sectors are also expected to play a crucial role in the FM market.

Facility management services have matured across cities including Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, Umm al Quwain, and Ajman, supported by robust infrastructure development projects aimed at economic growth. The increasing concentration of facility management service providers in these regions has impacted the financial performance of companies in the sector.

Dubai’s strategic location between Europe and Asia offers optimal trading conditions, bolstered by initiatives to develop its technology and infrastructure for a superior logistics and transport system. The rapid growth of e-commerce and the construction of warehouses are further boosting the demand for facility management services.

The commercial and retail sector significantly contributes to the facility management industry in the UAE, driven by rapid infrastructure development and increasing demand from hotels, retail outlets, malls, and office buildings. This sector encompasses office buildings occupied by various business services, including corporate offices of manufacturers, IT and telecommunication companies, finance and insurance firms, property agencies, and other service providers. The expanding IT sector in the UAE is anticipated to further boost the demand for commercial and facility management services.

Dubai, in particular, accounts for the majority of development projects within the UAE's commercial sector. Notably, the Dubai Expo 2020, held in March 2022, saw the Dubai government invest $ 7.0 billion in infrastructure and related commercial projects, thereby heightening the demand for facility management services in the retail sector. The growth in the Dubai region is largely attributed to increased investments from the government, and is expected to positively influence the demand for facility management services. Additionally, the post-pandemic revival of tourism is projected to bolster the hotel industry, further driving the need for facility management services.

The real estate sector's expansion and the development of smart cities are also key factors driving the demand for facility management.

TRENDS SHAPING THE INDUSTRY

Technological Advancements: The advancement of new technologies is expected to further fuel market growth in the facilities management (FM) sector. Integrating the latest innovations, such as building information modeling (BIM), advanced heating, ventilation, and air conditioning (HVAC) systems, and automated facility management software, enables companies to provide exceptional solutions to customers.

"The UAE's facilities management industry is swiftly adapting to emerging trends, notably machine and tool automation, integration of smart technologies, and sustainability practices. Companies are increasingly deploying Internet of Things (IoT), BIM, and AI to enhance operational efficiencies and ensure real-time management of assets,” says Tariq Chauhan, Group CEO of EFS Facilities Services Group, told BTR.

Chauhan adds, "There's a growing emphasis on user experience, tailoring services to boost occupant comfort and productivity. These trends are not only shaping the industry but also aligning FM services with broader economic transformations, positioning the UAE as a leader in innovative facilities management." By adopting these advanced technologies, the FM industry can improve operational efficiencies, ensure real-time asset management, and enhance user experiences, thereby driving the industry's growth and aligning it with global economic and environmental goals.

Markus Oberlin, CEO of Farnek, envisions a future where the convergence of net zero initiatives, digitalisation, and the cultivation of tech-savvy talent fundamentally shapes the landscape of the Facility Management (FM) industry. Recognising the pivotal role of these factors, particularly in real estate development and building management, Oberlin emphasises the driving forces behind this transformation: governments, investors, and consumers demanding sustainable, efficient solutions.

In February 2022, Farnek created a new smart FM technology solutions company. The HITEK solution 4.0, developed in-house, was initially launched in Q3 2021, connecting people, assets, and spaces from multiple remote sites, using intelligent analytical platforms for cleaning, security, and maintenance, so they could be smartly centrally managed and monitored by leveraging the Internet of Things (IoT), Building Management Systems (BMS), Cloud, Machine Learning (ML), and Artificial Intelligence (AI)-based technologies.

“HITEK has empowered its solutions with AI featuring big data analysis, which can use historical data from buildings and other facilities to forecast energy consumption, costs, time and the amount of footfall in buildings. This helps FM companies to optimise the appropriate use of resources such as manpower, logistics, spare parts, which all help to enhance operational efficiency and cost management,” Oberlin added.

Rising Demand for Sustainable Solutions: The rising emphasis on green building practices, is also driving the demand for facility management services. Green buildings require FM’s to efficiently manage air quality, energy consumption, water usage, and waste management. Green buildings, characterised by low operating, maintenance, and development costs, a healthier indoor environment, and enhanced durability, are creating significant opportunities for market players to enhance and showcase their offerings.

Sustainability is a significant focus, with firms embedding energy-efficient systems and green building standards to meet stringent ESG requirements.

Chauhan emphasised the critical role of sustainability in facility management amid the rapid urbanisation in the UAE. “The commitment of the region to sustainable development demands FM services that emphasise energy conservation, resource management, and environmental protection. The adoption of green building practices and the integration of advanced technologies such as IoT for effective energy management are crucial. These initiatives not only support national objectives like the UAE Green Agenda 2030 but also improve operational efficiency and reduce costs,” he says.

Chauhan further adds saying, “Facilities management can set a precedent by utilising eco-friendly materials and practices in public construction and renovation projects, thereby influencing wider market practices and supporting a sustainable economic environment. The role of FM extends further to include managing business continuity risks and disaster preparedness. Commitments to climate change measures and adherence to ESG standards place a significant responsibility on FM professionals to act as stewards of sustainability.”

— kushmita@khaleejtimes.com

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