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Over the past five years the Middle East's facilities management market has grown at an impressive rate and further advances have been predicted. Peter Ward looks into the industry's progression and the role the MEP sector has to play in its development.
The Middle East's massive building boom has brought with it the emergence of what could become one of the largest sectors in the region - facilities management (FM).
However, despite being one of the fastest growing industries, many still have trouble defining FM, which could be the main obstacle to its ascendancy.
According to the International Facilities Management Association (IFMA), FM can be defined as: 'a profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, process and technology'.
Operon Middle East director Paul Anson describes its complexity and sophistication a little more clearly, saying: "It is not just a man in a van with a toolbox, tinkering with something when it breaks down."
In simple terms FM involves managing, maintaining and providing services for a building after construction is complete and during the time that it is inhabited.
Options provided by FM consultants include security, cleaning and repairs, as well as overall maintenance of any plant that has been installed for the building operation, such as the air conditioning systems.
Anson is also quick to stress the real benefits of FM, beyond the immediate upkeep of a building. "If you go for FM services and pay a little bit more you're actually investing in the future value of your building.
"I think what people are struggling to see at the moment is that by investing now in a properly maintained building, they are going to increase its future value," he stresses.
Market changes
Statistics show that the FM market has come a long way in the past few years and it has possibly an even bigger distance to travel in years to come. The market is estimated to be worth $892 billion (AED3,276 billion) over the next 25 years.
Its development is directly linked with that of the construction industry. Put simply, as the number of buildings increases, the number needing FM services will also rise.
Being linked with an industry in which 3,339 projects worth more than $2.8 trillion (AED10.3 trillion) are currently underway is clearly not going to be detrimental to FM companies.
Like construction, the development of the FM market is progressing at a different pace throughout the region. Dubai is generally considered to be leading the way, with Abu Dhabi closely following.
Other Emirates such as Sharjah and Fujairah are developing more slowly, and although major projects are planned in Saudi Arabia the FM industry there remains small in comparison with that in Dubai.
It seems inevitable however that the areas lagging behind in the market will still have to go through the learning curve that Dubai's sector has been through and, to some extent, is still experiencing.
While the future certainly seems secure for the industry, Emcor COO Christian Roberts believes that FM still has a long way to progress.
"Although the concept of FM is becoming more common in the Middle East, it is still in its infancy stages. As such there is still a lack of understanding over the difference between facilities management and facilities maintenance and the value that is added to client assets through the management function."
Roberts highlights the major factors for the development of FM in the Middle East as "the construction boom, changes in property law, the ageing of existing facilities, poor construction quality of buildings and harsh environmental conditions".
Projects underway
FM's importance in the region has been highlighted recently with the announcement that the Atlantis resort on the Palm Jumeirah, Dubai will have to spend US $2.9 million (AED11 million) a year in order to maintain its facilities.
The contract for this work has been awarded to BK Gulf FM, a company that has its roots in MEP contracting.
BK Gulf will be dealing with maintenance on all of the mechanical and electrical installations in the $1.5 billion hotel resort. It will also be responsible for advanced systems such as the lighting control for the restaurants, ballroom and meeting facilities. Management of the resort's water parks, which hold over 15 million gallons of water, will also fall to BK Gulf.
A team of 130 people will be involved in the upkeep of the hotel. With the resort's launch date scheduled for September2008, BK Gulf has already started work on the project.
Head of facilities management at BK Gulf, Tony Martin is one of many FM consultants who believe that their early involvement can improve services down the line.
"BK Gulf promotes early FM involvement with all its clients. The benefit we have then is that our company carried out the fit-out and we then have the continuity, in-house expertise and contacts close at hand to utilise," Martin explains.
The amount of involvement of FM companies in the design process of developments varies. Olive VFM technical director Christopher Mills says: "I've been involved in the design stage with engineers for the past four years, but whenever I go to an FM conference they are bitterly complaining about not being involved in the design process."
