UAE Facil i ty Management MarketAnalysis , 2011 – 2021

Contents

© TechSci Research

2

• 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

• Contact Us 25

Industry Structure & Stakeholders

3

©TechSci Research

UAE Facility Management Market

Single Service

Providers

Tier III Companies

Sub-Contractor to

Tier I Companies

Commercial Complexes

Residential Sector

Bundled Service

Providers

Tier III Companies

Tier II Companies

Commercial Complexes

Industrial Set ups

Integrated Service

Providers

Tier II Companies

Tier I Companies

Large Government

Projects

Strategic Partnership

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

services to public and private entities.

Figure 1: UAE Facility Management Market Structure

Source: TechSci Research

UAE Facility Management Market Size, By Value

4

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Figure 2: UAE Facility Management Market Size, By Value, 2011-2021F (USD Billion)6

.01

6.7

8

7.5

7

8.8

0

10

.03

11

.26

12

.49

13

.72

14

.95

16

.18

17

.41

12.81%11.65%

16.25%13.98%

12.26%

10.92% 9.85%

8.97%

8.23%7.60%

3.00%

5.00%

7.00%

9.00%

11.00%

13.00%

15.00%

17.00%

0

2

4

6

8

10

12

14

16

18

20

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

Source: TechSci Research

Cost IndexDubai (USD)

Sharjah (USD)

Difference(%)

Apartment for Rent (3 bedrooms) in City Centre

4,104.82 1,494.84 63.58%

Price per Square Meter to Buy Apartment in City Centre

4,751.53 1,558.57 67.20%

Basic Utilities (Electricity, Heating, Water, Garbage) for

85m2 Apartment162.15 147.52 9.02%

Meal for 2 People, Mid-range Restaurant, Three-course

41.64 28.32 31.99%

Table 1: Dubai & Sharjah Cost Index Comparison, 2015

Source: UAE Ministry of Economy, TechSci Research

Construction projects worth

USD629 billion expected to be

completed in UAE by 2021. Upon

completion, these projects will

pave the way for growth of

facility management service in

the country.

List of Facility Management Companies – UAE

Company Location

Etisalat Facility Management LLC Dubai

Emrill Services LLC UAE

MAB Facilities Management L.L.C. Dubai

Interserve PLC Dubai

Reliance FM Dubai/Abu Dhabi

Cofely Besix Mannai Dubai/Abu Dhabi

Berkeley Services Group Dubai/Abu Dhabi

Idama Facilities Management

SolutionsDubai

Imdaad Dubai

EFS Facilities Services Dubai

Macro Limited Dubai

United Facilities Management Dubai

Farnek Services LLC 4 Emirates

Khidmah LLC. UAE

Al Shirawi Facilities Management

LLCDubai

Qurum business Group (QBG) Dubai

Chicago Maintenance &

Construction Co. (LLC)Dubai

Deeyar Facilities Management LLC UAE

Khansaheb Civil Engineering LLC Dubai

Table 2: UAE List of Facility Management Companies, 2017

Source: TechSci Research

5

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Company Location

Prime Square Technical Services

LLCDubai

Green Initiative Group Dubai

Maxicare Facility Management

ServicesUAE

OCS Group Limited Abu Dhabi

Serve U LLC Dubai

Advanced Facility Management Abu Dhabi

Adeeb Group Abu Dhabi

Transguard Group Dubai

CLEANING & MAINTENANCE

CENTER L.L.C. [CMC]Dubai

Duserve Facilities Management UAE

ETA Facility Management Dubai

EMCC LLC 4 Emirates

Census International Abu Dhabi

Delight Facility Management LLC Abu Dhabi

MKO facility Management LLC Dubai

Inaya Facility Management Dubai

Al-Futtaim Engineering Company

LLCUAE

Arabian Integrated FM Abu Dhabi

Company Location

Emirates International Facility

Management LLC (EIFM)Abu Dhabi

HTS Facility Management LLC UAE

One Touch Technical Services

LLCDubai

Abu Hasan Technical Works

L.L.CDubai

GDG Technical Services LLC. UAE

Tool Time LLC UAE

OnTime Facilities Management Dubai

Zamil Operation & Maintenance Dubai

BK Gulf LLC Dubai

Handyman Facilities

Management LLCDubai

Join Tech Facility Management

ServicesAbu Dhabi

Megaton Facility Management Abu Dhabi

Al Arabia Operation &

Maintenance LLCDubai

IWIN Electrical & Plumbing

Works LLCDubai

Source: TechSci Research

6

©TechSci Research

List of Facility Management Companies – UAE

Table 2: UAE List of Facility Management Companies,

2017 Contd.UAE facility management market

expected to consolidate as Tier-I and

Tier-II companies expand further

through merger and acquisitions. For

instance, In 2017, UAE-based facilities

management (FM) provider, Imdaad

announced investment of USD16 million

for the acquisition of small players.

Facility management companies would

be driven by user’s need to avail multiple

services, prompting companies to offer

integrated and customized facility

management solutions.

UAE Construction Sector is on a Spending Spree

Mixed, 56.50%

Residential, 14.08%

Transport, 13.20%

Leisure/hotel, 6.20%

Energy/ Power, 3.10%

Retail, 2.71%

Commercial, 2.32%

Others, 1.89%

Figure 4: Dubai Construction Projects in Execution

& Planning Stage, By Type of Project, 2016

37.68 38.97 40.22 41.58 43.74 46.07 48.76 51.6654.96 56.59

3.42% 3.21% 3.37%

5.19% 5.33%5.83% 5.95%

6.40%

2.96%

0.00%

2.00%

4.00%

6.00%

8.00%

0.00

10.00

20.00

30.00

40.00

50.00

60.00

2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

Construction GDP Growth Rate

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

7

©TechSci Research

Source: UAE Ministry of Economy, TechSci Research

Source: UAE Ministry of Economy, TechSci Research

Dubai Expo 2020 to act as major driver in

growth of construction projects in Dubai

region.

Around USD9.40 billion to be spent for

development of multiple expo complexes in

the region.

Abu Dhabi Urban Planning Council plans to

construct low-cost housing facility in the

region would also boost the construction of

residential projects in the region.

Drivers for Facility Management

14.20

20.00

2015 2020F

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

(Million)

Electricity, 22%

HVAC, 19%

MEP Services,

13%

Building Managemen

t , 13%

Cleaning, 12%

Others, 21%

Figure 5: UAE Distribution of Grade A Offices’ Operation

Cost Per Annum, 2016

8

©TechSci Research

Source: TechSci Research

Source: TechSci Research

Combined valuation from tourism and

aviation activities in Dubai set to reach

USD53.10 billion by 2020. This would

encourage need for facility

management services in upcoming

tourism and leisure projects in the

region.

Ongoing efforts by UAE to diversify its

economy, from conventional crude-oil

export to service-sector driven

economy would aid in construction of

commercial centres and other mixed-

use projects which will boost demand

for facility management services.

UAE Office Space Supply Outlook

7,059 7,472 7,6128,282 8,630 8,970

2012 2013 2014 2015 2016E 2017F

Figure 7: Dubai Gross Leasable Office Area Estimates,

2012-2017F (Thousand Square Meter)

Figure 8: Abu Dhabi Gross Leasable Office Area

Estimates, 2012-2017F (Thousand Square Meter)

2,870 3,028 3,170 3,3143,660 3,715

2012 2013 2014 2015 2016E 2017F

Source: Ministry of Infrastructure Development

Source: Ministry of Infrastructure Development

Rising Delivery of Office

Spaces in Dubai & Abu

Dhabi is projected to surge

demand for facility

management services.

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UAE Residential Supply Outlook

Source: Ministry of Infrastructure Development

Source: Ministry of Infrastructure Development

10

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

(Thousand)

425 432 447 452 452 473 505

2132

23

2012 2013 2014 2015 2016E 2017F 2018F

Completed Future Supply

Figure 10: Abu Dhabi Residential House Supply, 2012-

2018F (Thousand)

231237

242 244 244 247251

2

4

7

2012 2013 2014 2015 2016E 2017F 2018F

Completed Future Supply

Development plans linked with Dubai

Expo 2020 would result in influx of

tourist and worker population in

Dubai, prompting need for housing

projects.

In 2015, Abu Dhabi Urban Planning

Council (UPC) approved 26 property

projects covering gross floor area of

2.3 million square meters.

Abu Dhabi General Services Company

(Musanada) would invest USD643

million in development of residential

plots, mosques and schools in the

region.

Upcoming property projects are

expected to surge the demand for

facility management services in Dubai

and Abu Dhabi’s residential sector.

UAE Hotel Supply Outlook

Figure 12: Abu Dhabi Total Number of Hotel

Room Estimates, 2012-2018F (Million)

Source: Ministry of Infrastructure Development

Source: Ministry of Infrastructure Development

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Figure 11: Dubai Total Number of Hotel Room

Supply, 2012-2018F (Million)

57.83 60.85 64.35 72.1 78.56 78.6192.61

14

14.55

2012 2013 2014 2015 2016E 2017F 2018F

Completed Future Supply

17.3 18.2 19.65 20.42 21.35 21.35 23.25

1.91.2

2012 2013 2014 2015 2016E 2017F 2018F

Completed Future Supply

According to World Travel & Tourism

Council (WTTC), contribution of

tourism sector in UAE’s GDP is set to

reach USD64.47 billion by 2026, up

from USD36.43 billion in 2015. This

would offer huge opportunity for

tourism related development projects

across the country.

Dubai Tourism Vision 2020 and Abu

Dhabi Vision 2030 aim to promote

tourism sector by encouraging

investment in development of hotels,

resorts, tourist centres etc., thereby

fuelling the need for facility

management services in UAE.

UAE Retail Space Outlook

Figure 13: Dubai Total Retail Space, 2012-

2018F (Thousand Square Meter)

12

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Figure 14: Abu Dhabi Total Retail Space, 2012-

2018F (Thousand Square Meter)

Source: Ministry of Infrastructure Development

Source: Ministry of Infrastructure Development

2868 2901 2958 3182 3444 3444 3789

345358

2012 2013 2014 2015 2016E 2017F 2018F

Completed Future Supply

1982 21912562 2616 2627 2627 2708

185325

2012 2013 2014 2015 2016E 2017F 2018F

Completed Future Supply

UAE’s retail sector will expand from

USD56.6 billion in 2016 to USD71

billion by 2021, thereby fuelling

development of malls, retail shops etc.

Dubai set to emerge as a prime

location for shopping globally and

aims to attract investment worth

USD4 billion by 2017 for development

of retail centres.

Abu Dhabi’s retail sector is expected

to grow at a rapid pace owing to

strong domestic demand for luxury

goods and constant inflow of tourists,

which would result in addition of retail

space, thereby offering business

opportunities for facility management

service providers in the region.

UAE Upcoming Hotel Projects

©TechSci Research

13

Project Name Project Type City Completion Date

Tin Hotel Hotel Dubai 1-Dec-19

Chototel HotelHotel

Dubai 1-Nov-18

Forever Rose Hotel Hotel Apartments Dubai 1-Dec-20

Blue DiamondHotel

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. 196 - Al Mujarrah

Hotel Apartments Sharjah 1-Jun-19

Premier InnHotel

Dubai 1-Dec-17

Lemon Tree Hotel Hotel Abu Dhabi 1-May-19

Hotel Apartments - Jumeirah Village Circle (JVC)

Hotel Apartments Dubai 1-Sep-18

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

Hotel Building - Dubai Media CityHotel

Dubai 1-Nov-18

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

Source: Ministry Of Infrastructure Development

UAE Upcoming Hotel Projects

©TechSci Research

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Project Name Project Type City Completion Date

Manazel New Development Hotel Abu Dhabi 1-Jul-19

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

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

Hotel Building - Al Maryah IslandHotel

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 Residence

Hotel Apartments Dubai 1-Feb-18

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

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

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

Source: Ministry Of Infrastructure Development

UAE Upcoming Commercial Projects

List of Ongoing/Upcoming Commercial Projects

Project Name RegionCost of Project

(USD Million)

Estimated

Completion Date

Al Maryah Mall Abu Dhabi 1,000 2018

Dubai Parks and Resorts Dubai 2,800 2020

Blue Water IslandsDubai

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 (MBR) City – District One

Dubai 10,000 2017

Jumeirah Central project Dubai 19,818 2021

Source: MEED Projects, TechSci Research

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

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Drivers and Challenges

Drivers

Growing Focus Towards Green Buildings

Increasing Number of Construction Projects

Booming Population

Upcoming Mega-Events Such as Dubai Expo 2020

Challenges

Lack of Awareness

Lack of Skilled Workforce

Low Margins

©TechSci Research

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17

Growing Focus on Sustainability

Technology Integration

Integration of Facility Management in Building

Designs

Booming Internet of Things (IoT) Market

Increasing Focus on Outsourcing

Market Trends & Developments

©TechSci Research

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

Rest of UAE include Ajman, Fujairah, Ras al-Khaimah and Umm al-QaiwainSource: TechSci Research

Abu Dhabi

2015 2021F

Dubai

2015 2021F

50.32% 51.08%

Rest of UAE

2015 2021F

11.84% 10.40%

24.16% 24.83%

Sharjah

2015 2021F

13.68% 13.69%

UAE Facility Management Market Share, By Region

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

19

©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.

Dubai Expo 2020

• Expected Participation of 180 Nations and International Companies

• Employment Opportunities for 277,150 personnel during 2013-2021

Cost of Spending in UAE – Plumbing

20

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

Multiple-Storey Building

USD1,200-1,350USD550-650

Villa

USD900-1,000

Others

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

USD4,000-5,000

Commercial Buildings

Industrial Buildings

Single-Storey Building

Others include mosques, recreational centers, etc.

*NOTE: The figure represents average cost in the UAE in 2016

Source: TechSci Research

21

©TechSci Research

USD400-450

Cost of Spending in UAE – Painting

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

USD650-750

Villa

USD1,200-1,350

Others

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

USD1,800-2,000

Commercial Buildings

Industrial Buildings

Single-Storey BuildingMultiple-Storey Building

Others include mosques, recreational centers, etc.

*NOTE: The figure represents average cost in the UAE in 2016

Source: TechSci Research

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