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Middle East Facility Management Association: Saudi Arabia tops GCC in FM spending with 55%

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<Experts from the Middle East Facility Management Association (MEFMA) have highlighted the tremendous growth potential of the facilities management (FM) sector in Saudi Arabia, noting that it has become a “giant industry” with promising prospects for regional players looking to build a strong presence in what observers say is still a relatively untapped market. This came during a recent workshop in Riyadh sponsored by Advanced Facility Management (AFM) to promote effective networking among the Middle East's leading FM industry players.

The recent report, sponsored by Advanced Facility Management (AFM), was released in Riyadh. <According to a recent report by the Middle East Facility Management Association (MEFMA) titled ”Facility Management in Saudi Arabia - The Emergence of a Giant Industry”, the Kingdom continues to account for the largest share of total GCC spending on facility management, at approximately 55%. Although the FM market in Saudi Arabia is currently valued at US$20 billion, it is still considered an emerging market in terms of its share of the construction infrastructure development. Analyses indicate that the Saudi FM industry is characterized by a reliance on manpower supply services and low-quality building maintenance solutions. The Middle East Facility Management Association (MEFMA) estimates that less than a third of the demand for FM solutions comes predominantly from the government sector, which relies heavily on outsourced services. <The workshop, moderated by Ali Al Suwaidi, Board Member of the Middle East Facility Management Association (MEFMA), saw extensive discussions on the most pressing issues related to facilities management during an interactive session titled ”Delivery Policy in Mega Project Management“, highlighting the key growth areas related to mega projects in the Saudi Arabian market. Attendees discussed the tremendous opportunities arising from the accelerated pace of residential projects in the Kingdom, as the residential sector is poised for sustained growth, with new projects associated with the government's strategic programs to enable 52% Saudi citizens to own homes that meet their financial needs by 2020, in line with Vision 2030 to ensure a decent life for Saudi families. There is no doubt that the scale of residential projects requires the use of facilities management services, which will ensure the efficiency and sustainability of facilities in the long term.

Jamal Abdullah said. <Jamal Abdullah Lootah, President of the Middle East Facility Management Association, said: “The facilities management industry in Saudi Arabia is growing and evolving at a rapid pace as the number of real estate and residential projects grows. The regional spotlight is now on the dynamic local market, with the government sector moving towards large-scale outsourcing and the private sector continuing to rely on in-house management based on traditional services, rather than utilizing integrated facilities management solutions. We are confident and optimistic about the local market, and the time is ripe for the Middle East's leading FM providers to capitalize on the emerging opportunities and prospects to best serve our shared aspirations.”

The Middle East FM Association (MEFA) held an event at the Middle East's premier facility management conference in New York City, which was organized by the Middle East FM Association. <On the sidelines of the workshop agenda, the Middle East Facility Management Association (MEFMA) held a networking forum under the theme “The Holistic Approach to Facilities Management in the Kingdom”, with the participation of keynote speakers including Dr. Talal Ahmed Al-Huraiji of the National Training Center for Facilities and Hospitality Management (FHM), Abdulaziz Al-Omeir of Tatweer Buildings, Massad Al-Dawood of TAMAM Maintenance and Building Cleaning Services, and Saleh Al-Rajhi of Advanced Facilities Management (AFM). The interactive sessions were moderated by Engineer Aayed Al-Qahtani, Board Member of the Middle East Facility Management Association (MEFMA). <According to MEFMA, in recent years, FM clients in the GCC region have been adopting global trends, including signing longer-term contracts with FM providers, typically 3 to 5 years, and including more specific and personalized requirements in the contracts. These trends are most evident in strong markets such as Dubai, but are becoming increasingly popular in Abu Dhabi and Doha. The association attributed the changes to the accelerating pace of technological development, which has a significant positive impact on productivity, transparency and service quality, all of which are key factors in the FM industry's contribution to the growth and sustainability of the regional economy.