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UA E Fa c i l i t y M a n a g e m e n t M a r ke t

A n a lys i s , 2 0 1 1 2 0 2 1
Contents

UAE FM Industry Structure & Stakeholders 03


Market Size, by Value 04
FM Companies in the UAE 05
Drivers for the FM Industry 08
Sectoral Outlook: 09
Office Space Supply
Residential Supply
Hotel Space Supply
Retail Space Supply
UAE Upcoming Hotel Projects 13
Upcoming Commercial Projects 15
Drivers & Challenges 16
Trends & Developments 17
UAE FM Market Share, by Region 18
Dubai Expo 2020 to Drive UAE FM Market 19
Cost of Spending in UAE Plumbing & Painting 20
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TechSci Research
Industry Structure & Stakeholders

Figure 1: UAE Facility Management Market Structure

UAE Facility Management Market

Single Bundled Integrated


Service Service Service
Providers Providers Providers

Tier III Tier III Tier II Tier II Tier I


Companies Companies Companies Companies Companies

Sub- Large
Contractor to Commercial Residential Commercial Industrial Strategic
Government
Tier I Complexes Sector Complexes Set ups Partnership
Projects
Companies
Source: TechSci Research

UAE facility management market can be categorized into three segments - Single Service Providers,

Bundled Service Providers and Integrated Service Providers.

Single service providers usually Tier III companies, provide individual services such as cleaning,

security and maintenance.

Bundled service providers include Tier II or Tier III companies, provide two or more facility

management services to consumers.

Integrated service providers Tier I companies, provide almost all kinds of facility management
3
services to public and private entities.
TechSci Research
UAE Facility Management Market Size, By Value

Figure 2: UAE Facility Management Market Size, By Value, 2011-2021F (USD Billion)

20 16.25% 17.00%
13.98%
18
12.81% 15.00%
16 11.65%
12.26% 13.00%
14
10.92% 9.85%
12
11.00%
8.97%
10
8.23% 9.00%
8 7.60%
6 7.00%
4

16.18
10.03

11.26

12.49

13.72

14.95

17.41
7.57
6.01

6.78

8.80

5.00%
2
0 3.00%
2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

Source: TechSci Research

Table 1: Dubai & Sharjah Cost Index Comparison, 2015

Dubai Sharjah Difference


Cost Index
(USD) (USD) (%) Construction projects worth
Apartment for Rent (3 USD629 billion expected to be
4,104.82 1,494.84 63.58%
bedrooms) in City Centre
completed in UAE by 2021. Upon
Price per Square Meter to
4,751.53 1,558.57 67.20% completion, these projects will
Buy Apartment in City Centre
Basic Utilities (Electricity, pave the way for growth of
Heating, Water, Garbage) for 162.15 147.52 9.02%
facility management service in
85m2 Apartment
Meal for 2 People, Mid-range the country. 4
41.64 28.32 31.99%
Restaurant, Three-course
TechSci Research
Source: UAE Ministry of Economy, TechSci Research
List of Facility Management Companies UAE

Table 2: UAE List of Facility Management Companies, 2017

Company Location Company Location


Etisalat Facility Management LLC Dubai Prime Square Technical Services
Dubai
LLC
Emrill Services LLC UAE
Green Initiative Group Dubai
MAB Facilities Management L.L.C. Dubai
Maxicare Facility Management
Interserve PLC Dubai UAE
Services
Reliance FM Dubai/Abu Dhabi
OCS Group Limited Abu Dhabi
Cofely Besix Mannai Dubai/Abu Dhabi
Serve U LLC Dubai
Berkeley Services Group Dubai/Abu Dhabi
Advanced Facility Management Abu Dhabi
Idama Facilities Management
Dubai Adeeb Group Abu Dhabi
Solutions
Imdaad Dubai Transguard Group Dubai

EFS Facilities Services Dubai CLEANING & MAINTENANCE


Dubai
CENTER L.L.C. [CMC]
Macro Limited Dubai
Duserve Facilities Management UAE
United Facilities Management Dubai
ETA Facility Management Dubai
Farnek Services LLC 4 Emirates
EMCC LLC 4 Emirates
Khidmah LLC. UAE
Al Shirawi Facilities Management Census International Abu Dhabi
Dubai
LLC Delight Facility Management LLC Abu Dhabi
Qurum business Group (QBG) Dubai MKO facility Management LLC Dubai
Chicago Maintenance & Inaya Facility Management Dubai
Dubai
Construction Co. (LLC)
Al-Futtaim Engineering Company
Deeyar Facilities Management LLC UAE UAE
LLC
5
Khansaheb Civil Engineering LLC Dubai Arabian Integrated FM Abu Dhabi
Source: TechSci Research TechSci Research
List of Facility Management Companies UAE

Table 2: UAE List of Facility Management Companies,


UAE facility management market
2017 Contd.
Company Location expected to consolidate as Tier-I and

Emirates International Facility Tier-II companies expand further


Abu Dhabi
Management LLC (EIFM) through merger and acquisitions. For
HTS Facility Management LLC UAE
instance, In 2017, UAE-based facilities
One Touch Technical Services
Dubai management (FM) provider, Imdaad
LLC
Abu Hasan Technical Works announced investment of USD16 million
Dubai
L.L.C for the acquisition of small players.
GDG Technical Services LLC. UAE
Facility management companies would
Tool Time LLC UAE
be driven by users need to avail multiple
OnTime Facilities Management Dubai
services, prompting companies to offer
Zamil Operation & Maintenance Dubai
integrated and customized facility
BK Gulf LLC Dubai management solutions.
Handyman Facilities
Dubai
Management LLC
Join Tech Facility Management
Abu Dhabi
Services

Megaton Facility Management Abu Dhabi

Al Arabia Operation &


Dubai
Maintenance LLC
IWIN Electrical & Plumbing 6
Dubai
Works LLC
Source: TechSci Research TechSci Research
UAE Construction Sector is on a Spending Spree

Figure 3: UAE Construction Sector Spending, 2012-2021F (USD Billion)

60.00 54.96 56.59 8.00%


48.76 51.66
50.00 43.74 46.07
38.97 40.22 41.58 6.40%
6.00%
37.68 5.83% 5.95%
40.00 5.19% 5.33%
30.00 4.00%
3.42% 3.21% 3.37%
20.00 2.96%
2.00%
10.00
0.00 0.00%
2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

Construction GDP Growth Rate


Source: UAE Ministry of Economy, TechSci Research

Figure 4: Dubai Construction Projects in Execution


& Planning Stage, By Type of Project, 2016 Dubai Expo 2020 to act as major driver in
Energy/ Retail, Commercial, Others, growth of construction projects in Dubai
Power, 2.71% 2.32% 1.89%
3.10%
region.

Leisure/hotel,
6.20% Around USD9.40 billion to be spent for

development of multiple expo complexes in


Transport,
13.20% Mixed, the region.
56.50%

Abu Dhabi Urban Planning Council plans to

construct low-cost housing facility in the


Residential, region would also boost the construction of
14.08%
7
Source: UAE Ministry of Economy, TechSci Research residential projects in the region.
TechSci Research
Drivers for Facility Management

Figure 5: UAE Distribution of Grade A Offices Operation


Cost Per Annum, 2016
Ongoing efforts by UAE to diversify its

Others, economy, from conventional crude-oil


Electricity,
21% 22%
export to service-sector driven

economy would aid in construction of


Cleaning
commercial centres and other mixed-
, 12%

use projects which will boost demand

for facility management services.


Building HVAC,
Managemen 19%
MEP
t , 13% Services,
13%

Source: TechSci Research

Figure 6: Number of Tourists in Dubai, 2015 & 2020F


Combined valuation from tourism and
(Million)
20.00 aviation activities in Dubai set to reach

14.20 USD53.10 billion by 2020. This would

encourage need for facility

management services in upcoming

tourism and leisure projects in the


2015 2020F 8
Source: TechSci Research
region.
TechSci Research
UAE Office Space Supply Outlook

Figure 7: Dubai Gross Leasable Office Area Estimates,


2012-2017F (Thousand Square Meter)

8,630 8,970
8,282
7,472 7,612
7,059

Rising Delivery of Office


2012 2013 2014 2015 2016E 2017F
Source: Ministry of Infrastructure Development
Spaces in Dubai & Abu
Dhabi is projected to surge
Figure 8: Abu Dhabi Gross Leasable Office Area
demand for facility
Estimates, 2012-2017F (Thousand Square Meter)
management services.
3,660 3,715
3,170 3,314
2,870 3,028

2012 2013 2014 2015 2016E 2017F


9
Source: Ministry of Infrastructure Development
TechSci Research
UAE Residential Supply Outlook

Figure 9: Dubai Residential House Supply, 2012-2018F


Development plans linked with Dubai
(Thousand)
23
32 Expo 2020 would result in influx of
21
tourist and worker population in

Dubai, prompting need for housing


473 505
432 447 452 452
425 projects.

In 2015, Abu Dhabi Urban Planning

2012 2013 2014 2015 2016E 2017F 2018F Council (UPC) approved 26 property

Completed Future Supply projects covering gross floor area of


Source: Ministry of Infrastructure Development
2.3 million square meters.

Abu Dhabi General Services Company


Figure 10: Abu Dhabi Residential House Supply, 2012-
2018F (Thousand) (Musanada) would invest USD643
7
4 million in development of residential
2
plots, mosques and schools in the

251
region.
244 244 247
242
237
231
Upcoming property projects are

2012 2013 2014 2015 2016E 2017F 2018F expected to surge the demand for

Completed Future Supply facility management services in Dubai 10


Source: Ministry of Infrastructure Development
and Abu Dhabis residential sector. TechSci Research
UAE Hotel Supply Outlook

Figure 11: Dubai Total Number of Hotel Room


Supply, 2012-2018F (Million) According to World Travel & Tourism
14.55
Council (WTTC), contribution of
14
tourism sector in UAEs GDP is set to

reach USD64.47 billion by 2026, up


92.61
72.1 78.56 78.61
57.83 60.85 64.35 from USD36.43 billion in 2015. This

would offer huge opportunity for

2012 2013 2014 2015 2016E 2017F 2018F tourism related development projects
Completed Future Supply
across the country.
Source: Ministry of Infrastructure Development

Figure 12: Abu Dhabi Total Number of Hotel


Room Estimates, 2012-2018F (Million) Dubai Tourism Vision 2020 and Abu
1.2
1.9
Dhabi Vision 2030 aim to promote

tourism sector by encouraging

23.25 investment in development of hotels,


19.65 20.42 21.35 21.35
17.3 18.2
resorts, tourist centres etc., thereby

fuelling the need for facility


2012 2013 2014 2015 2016E 2017F 2018F
management services in UAE.
Completed Future Supply
11
Source: Ministry of Infrastructure Development
TechSci Research
UAE Retail Space Outlook

Figure 13: Dubai Total Retail Space, 2012-


UAEs retail sector will expand from
2018F (Thousand Square Meter)
USD56.6 billion in 2016 to USD71
358
345 billion by 2021, thereby fuelling

development of malls, retail shops etc.

3444 3444 3789 Dubai set to emerge as a prime


2868 2901 2958 3182

location for shopping globally and

aims to attract investment worth


2012 2013 2014 2015 2016E 2017F 2018F

Completed Future Supply USD4 billion by 2017 for development

Source: Ministry of Infrastructure Development of retail centres.

Abu Dhabis retail sector is expected


Figure 14: Abu Dhabi Total Retail Space, 2012-
to grow at a rapid pace owing to
2018F (Thousand Square Meter)
325
185 strong domestic demand for luxury

goods and constant inflow of tourists,

which would result in addition of retail


2562 2616 2627 2627 2708
1982 2191
space, thereby offering business

opportunities for facility management


2012 2013 2014 2015 2016E 2017F 2018F
service providers in the region.
Completed Future Supply 12
Source: Ministry of Infrastructure Development
TechSci Research
UAE Upcoming Hotel Projects

Table 3: UAE Upcoming Hotel Projects, By Project Type & City, As of September 2016

Project Name Project Type City Completion Date

Tin Hotel Hotel Dubai 1-Dec-19

Hotel
Chototel Hotel Dubai 1-Nov-18

Forever Rose Hotel Hotel Apartments Dubai 1-Dec-20

Hotel
Blue Diamond Fujairah 1-Nov-18

Vida Town Square Hotel Dubai 1-Feb-18

Firdous Sobha Resort Umm Al Quwain 1-Dec-19

Novotel Hotel Hotel Dubai 1-Dec-18

Hotel Apartments Building at Plot No.


Hotel Apartments Sharjah 1-Jun-19
196 - Al Mujarrah

Premier Inn Dubai 1-Dec-17


Hotel

Lemon Tree Hotel Hotel Abu Dhabi 1-May-19

Hotel Apartments - Jumeirah Village


Hotel Apartments Dubai 1-Sep-18
Circle (JVC)

Hotel Building - Mall of the Emirates Hotel Dubai 1-Nov-18

Hotel Building - Dubai Media City Dubai 1-Nov-18


Hotel 13
Source: Ministry Of Infrastructure Development TechSci Research
UAE Upcoming Hotel Projects

Table 3: UAE Upcoming Hotel Projects, By Project Type & City, As of September 2016 Contd.

Project Name Project Type City Completion Date

Manazel New Development Hotel Abu Dhabi 1-Jul-19

Business Hotel - Business Park - Khalifa


Hotel Apartments Abu Dhabi 17-Jul-18
Industrial Zone Abu Dhabi (KIZAD)

The Link - Dubai Motor City Hotel Dubai 31-May-19

Hotel
Hotel Building - Al Maryah Island Abu Dhabi 1-Apr-19

Marina Rise Tower - C2 - Reem Island Hotel Abu Dhabi 1-Dec-18

4 Star Hotel - Rashid Hospital Expansion Hotel Dubai 1-Dec-17

5 Star Hotel - Rashid Hospital Expansion Hotel Dubai 1-Dec-18

Ras Al Khaimah Marriott Resort Resort Ras Al Khaimah 12-Jun-19

Eagle Hills Towers - Jumeirah Beach Hotel Apartments Dubai 1-Feb-18


Residence

Dusit Hotel - Sharjah Waterfront City Hotel Sharjah 1-Feb-19

Shaza Hotel - Sharjah Waterfront City Hotel Sharjah 1-Feb-19 14


Source: Ministry Of Infrastructure Development TechSci Research
UAE Upcoming Commercial Projects

Table 4: UAE Ongoing/Upcoming Commercial Projects, As of October 2016

List of Ongoing/Upcoming Commercial Projects

Cost of Project Estimated


Project Name Region
(USD Million) Completion Date

Al Maryah Mall Abu Dhabi 1,000 2018

Dubai Parks and Resorts Dubai 2,800 2020

Dubai
Blue Water Islands 1,600 2018

Sharjah retail complex Sharjah 56.70 2021

Museum of the Future Dubai 200 2017

Mall of the World Dubai 6,750 2020

Sharjah Waterfront City Sharjah 5,450 2018

Sir Bu Nair Island project Sharjah 135 2017

Mohammed Bin Rashid Al Maktoum


Dubai 10,000 2017
(MBR) City District One

Jumeirah Central project Dubai 19,818 2021


15
Source: MEED Projects, TechSci Research
TechSci Research
Drivers and Challenges

Drivers
Challenges

Growing Focus Towards Green Buildings


Lack of Awareness

Increasing Number of
Construction Projects
Lack of Skilled Workforce

Booming Population
Low Margins

Upcoming Mega-Events Such as Dubai


Expo 2020

16
TechSci Research
Market Trends & Developments

Growing Focus on
Sustainability

Technology Integration

Integration of Facility
Management in Building
Designs

Booming Internet of Things


(IoT) Market

Increasing Focus on
Outsourcing

17
TechSci Research
UAE Facility Management Market Share, By Region

Figure 15: UAE Facility Management Market Share, By Region, By Value, 2015 & 2021F

Developments pertaining to Dubai Expo 2020 is expected to generate ample opportunities for facility
management services in Dubai through 2021

Rest of UAE
2015 2021F
11.84% 10.40%

Dubai Sharjah

2015 2021F 2015 2021F

50.32% 51.08% 13.68% 13.69%

Abu Dhabi

2015 2021F
24.16% 24.83%

Rest of UAE include Ajman, Fujairah, Ras al-Khaimah and Umm al-Qaiwain 18
Source: TechSci Research
TechSci Research
Dubai Expo 2020 to Drive UAE Facility Management Market

Millions of visitors are anticipated to visit the country for Dubai Expo 2020. In order to bring the

country to the forefront, Government of UAE is continuously upgrading its commercial as well as

tourism sectors.

In 2016, construction projects worth USD155 billion were under execution in the country, and

projects worth USD629 billion are slated for completion by 2021. Post completion, these projects are

expected to boost demand for facility management services in the country.

In order to host the mega-event, an estimated USD9.40 billion would be required for building

multiple expo complexes across an area of 438 hectares.

Expected Participation of 180 Nations


Dubai and International Companies
Expo
2020 Employment Opportunities for 277,150
personnel during 2013-2021

19
TechSci Research
Cost of Spending in UAE Plumbing

Figure 16: UAE Average Annual Spending on Plumbing, By Type of Building, 2016* (USD)

Villa

USD900-1,000

Multiple-Storey Building
Single-Storey Building

USD550-650 USD1,200-1,350

Industrial Buildings Others

USD3,500-4,500 USD2,000-2,500

Commercial Buildings
Others include mosques,
recreational centers, etc.
*NOTE: The figure represents average cost in
USD4,000-5,000 the UAE in 2016 20
Source: TechSci Research
TechSci Research
Cost of Spending in UAE Painting

Figure 17: UAE Average Annual Spending on Painting, By Type of Building, 2016* (USD)

Villa

USD1,200-1,350

Single-Storey Building Multiple-Storey Building

USD400-450 USD650-750

Industrial Buildings Others

USD1,600-1,750 USD1,300-1,450

Commercial Buildings

Others include mosques,


recreational centers, etc.
USD1,800-2,000 *NOTE: The figure represents average cost in
21
the UAE in 2016
Source: TechSci Research
TechSci Research
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