The document provides the results of a survey of 253 professionals in the facilities management industry in the Middle East. Some key findings from the survey include: - Respondents were optimistic about business prospects, with a majority expecting increases in turnover, budgets, and workforce size over the next 12 months. - Demand for facilities management services is expected to grow as more functions are outsourced. However, attracting and retaining skilled staff is seen as a major challenge due to competition. - Most respondents saw opportunities to expand their business in areas like training and adopting new technologies, though views on how technology is currently being utilized differed. - Overall the survey indicates positive confidence in the facilities management industry across the Middle East region

1. The Facilities Management
Business Confidence Monitor 2015
Middle East
IN PARTNERSHIP WITH

2. This collaboration between the British Institute of Facilities Management (BIFM), FM
EXPO and i-fm.net, provides a depiction of the regional facilities management (FM)
industry, as viewed by the professionals who work in it everyday. Through a survey and
series of interviews, the report is aimed to capture a complete picture of FM market
confidence by canvassing the views of the sector’s senior decision makers as well as the
teams on the ground delivering those services throughout the Middle East. The outcome
of this work gives us an accurate indication of the current state of play and an authentic
forecast of overall business confidence for the next 12 months within the market.
As the industry has developed and continues to develop in the region, assessing its
progress will be an important part of shaping its future.
This year’s research demonstrates a positive outlook within the market. This is seen in
expectations for growth in business turnover and in the opportunity and appetite for future
training and qualifications. A majority of FM employees are confident of a pay rise and
even more are confident of an expansion in workforce. Almost 51 percent were confident
of an increase in salary in the next 12 months, while a staggering 61 percent believe that
their workforce will increase in the next 12 months.
The results also point to key opportunities for alert organisations. Just one amongst
these is the chance to introduce training and qualifications to meet the demands of
professional staff who want them, which may at the same time help to tackle the key
business challenges of recruiting and retaining staff.
While statistics are interesting, opinions are vital too - that’s why we’ve included views
gathered from around the industry in our analysis and highlighted a few key interviews.
We hope the results gives you something to consider and will play a significant role in the
Middle East’s FM industry as it assesses its plans for the future.
Welcome to the Facilities
Management Business
Confidence Monitor 2015
“More specialists will
be attracted to enter
the local market, either
as entrants from abroad
or as start-ups, and
this will enable general
providers to sub out
more efficiently”
Survey Respondent
The Facilities Management Business Confidence Monitor 2015Page 2
Gareth Tancred - CEO, BIFM
David Emanuel - Managing Director, IFM.net
Jaafar Shubber - Senior Project Manager, FM EXPO

3. WHO TOOK THE SURVEY?
The survey in total had 253 responses. The survey was conducted online, targeting those
with a direct or indirect interest in the facilities management (FM) sector. Respondents
primarily came from service providers (60 percent) with public and private-sector clients
making up a further 25 percent of those who took part. Of the individuals who answered
the survey, 85 percent identified themselves as in a middle management position or
higher, across a breadth of typical industry roles.
Unsurprisingly, given the relative strengths of the FM industry in the different countries
of the region some 73% of respondents work in the UAE. The remaining 27% principally
work in other areas, of which 10% were from another region.
Most notable among the demographic data was the fact there was a very even spread
among the sizes of organisation the respondents work for. Factors which may have
contributed to this include the relative ease of setting up a business in the UAE and
describing it as an FM company, although a number of smaller businesses or single
service providers may be significantly more limited in scope when compared to genuine
total facilities management organisations.
DESCRIBE YOUR ORGANISATION?
“Significant opportunities to develop the
professionalism and quality of FM in the region
as clients better understand the benefits to be
realised from the sector”
Survey Respondent
Results
and analysis
Page 3The Facilities Management Business Confidence Monitor 2015
60%
Service
providers
Public- and
private-
sector
clients
Other
25%
15%
73%
5%
8%
2%
3% 10%
UAE
QATAR
SAUDI ARABIA
KUWAIT
OMAN
OTHER
WHICH REGION DO YOU PRINCIPALLY
WORK IN?

4. There is good news for those in the outsourcing business as
the largest slice of client respondents indicated that their FM
is totally outsourced (36 percent). When asked about how this
was likely to develop 60 percent said more FM operations will be
outsourced in the future. This is an optimism shared by those
interviewed directly, although there was a word of caution with
one interviewee suggesting that while outsourcing is a strong
international trend, it still has some way to go to fully develop in
the local market.
FM suppliers were also well regarded in terms of their ability to
deliver innovation and best value. 78 percent of respondents were
satisfied or very satisfied with that aspect of their interaction,
something which may be surprising in a region where there is
still a great deal of variance among the companies operating, in
terms of both their standards and sophistication.
Outsourcing
set to increase
Business
environment
and budgets
The Facilities Management Business Confidence Monitor 2015Page 4
The optimistic tone of the survey continued when respondents
were asked to describe the current FM business environment
with 61 percent seeing it as ‘positive’ or ‘very positive’.
Subjects interviewed for the report broadly agreed with the
outlook, citing everything from increased construction activity and
deliveries, to event based projects, as reasons why it was fair to
expect a healthy level of business to continue in the near future.
Also there was an acknowledgement that there continues to be
a steady, if gradual, improvement in understanding of what FM is
and where it can add value for clients who fully engage with the
idea. That said there is still much to be done to continue improved
understanding and awareness.
Almost no one thought the FM environment would deteriorate
over the next 12 months, while 71 percent believed it would
improve. Respondents were backing this belief in improvement
with positive expectations about budgets, capital investment,
forward order books and turnover, all of which the majority
believe will increase to one degree or another.
“The
FM industry
is developing in
this region. End users need
to be educated about facility
management functions. There
should be criteria for starting an FM
company in the UAE. Local laws and
regulations should be introduced
and implemented to increase the
sanctification of end users”
Survey Respondent

5. Q&A
The macroeconomic view
Page 5The Facilities Management Business Confidence Monitor 2015
IS THE REGION AS BUOYANT AS THE SURVEY WOULD INDICATE?
We see buoyancy across the region, but for different reasons in each
country. We believe the industry is in a much better position now
- compared to before the downturn - and we’re seeing a return to
investment in construction, plus we’re also seeing the large developers
such as Emaar and Nakheel start to invest again in building new mega
developments and across the region we’re seeing significant investment
in infrastructure and transport such as Qatar Rail, Saudi Rail and the
Riyadh Metro projects.
Seeing it from an FM point of view the UAE is clearly the most
developed market.
In Qatar the FIFA World Cup 2022 is driving a lot of activity, obviously
in sporting arena’s but also in supporting infrastructure such as
hospitality and retail, as well as mega developmentssuch as the
Msheireb Heart of Doha Development and QP District. In Qatar, a lot
of companies entered the market and we do expect to see growth
and opportunities, but we’re not seeing any provider standing out and
taking the lead.
Saudi Arabia is probably the most interesting market in the region at
the moment. There is more investment going into Saudi Arabia than
anywhere else. It is investing in huge developments and educational
facilities. We’re also seeing requirements for significant levels of
Saudisation in contracts to provide employment to local people. A
number of international players are entering the market, but levels of
FM outsourcing in KSA remain low in comparison to UAE or Qatar.
WHO IS MOST LIKELY TO MAKE THE BEST OF THE MARKET?
The people that maximise those opportunities I believe will be the people
who can differentiate themselves from others, a lot of the newer entrants
have now shown the capability to have any real impact in the market.
Since the global economic downturn, FM providers have been put under-
increasing pressure from clients to deliver savings and efficiencies,
leading to areduction in operating costs. The companies that were able to
differentiate themselves, drive innovation and quality and offer value for
money, have managed to grow during this difficult period and are likely to
continue to do so.
Saeed Ahmed
FM Director – MENA
Interserve International
“We see
buoyancy
across the
region”

6. Crucially, given the already competitive labour market for both
professional and skilled operational staff, results indicate that 65
percent of respondents believe their workforce will increase. A
similarly substantial 55 percent of respondents believed their in
house teams would increase in size. The reasons given varied,
but all centered around the core idea that there would be more
work and more contracts available to win.
Boosting team sizes may prove easier said than done and
respondents were aware that it may not be straight forward. Two
of the top five business challenges identified in the survey as an
obstacle or barrier to business success over the next 12 months
included a shortage of skilled staff (29 percent of respondents
picked this as one of their top three choices) and recruiting/
retaining staff (26 percent of respondents picked this as one of
their top three choices).
Competition for skilled staff is on the increase as new markets
develop around the region. Emerging markets in places like Saudi
Arabia are working hard to recruit professionals with regional
experience and the current weighting of the industry means many
of these people are being taken out of the UAE market via some
highly competitive offers.
When asked about their individual career prospects responses
reflected the fluid nature of the labour market and a belief that
it is one with plenty of opportunity in it if for those with the right
skills and experience. Confidence in career prospects was high
with 84 percent of people ‘somewhat confident’ or ‘extremely
confident’ about their prospects over the next 12 months. Only 21
percent felt they were facing direct job security issues, although
25 percent were unsure.
On the issue of pay, 51 percent of respondents expected to see
an increase in the next 12 months with a further 23 percent
uncertain. Only 27 percent thought they would not receive a rise.
Something companies need to be alert to is the relative mobility
of the workforce in the region. While 41 percent of respondents
had no plans to change organisation in the next 12 months, 29
percent have plans and a further 30 percent are unsure either
way. The uncertainty could well be an indicator of people who
are keeping their options open, making them likely targets for
unsolicited job offers.
This represents a risk all companies face as competition for
skilled people looks set to hot up. Executives interviewed
confirmed that turnover remains high and pay increases have
continued to be given at higher-than-inflation levels.
“Over the last six to seven years we have seen salaries increase
above the level of inflation and would expect them to continue to
do so as competition increases for good and experienced staff,”
said one regional executive.
Part and parcel of this workforce mobility is an awareness of the
need for qualifications, possibly to create enough differentiation
to secure an improved job offer. 70 percent believed further
qualifications would be essential to their career development and
61 percent had plans to pursue those qualifications over the next
12 months.
This appetite for training represents a significant opportunity for
FM specific training organisations who can offer certified courses.
It may also point to a key way of improving employee retention for
those organisations with the resources to support employees in
coordinated pursuit of professional development.
Encouragingly some 67 percent of respondents believed their
organisation would ‘increase’ or ‘increase significantly’ their
spend on staff training over the next 12 months.
Workforce plans and challenges
“Stock of property is increasing and much of it built in the last decade
is now requiring more than minimal maintenance. Also the large
number of owner-occupiers of residential property is increasingly in
need of AMCs rather than ad-hoc maintenance call outs”
Survey Respondent
The Facilities Management Business Confidence Monitor 2015Page 6
52%
14%
2% 1%
Extremely confident
Somewhat confident
No strong view
Somewhat unconfident
Extremely unconfident
32%
CONFIDENCE IN CAREER PROSPECTS

7. 91 percent of respondents believe they are using technology to grow their business.
However it is clear from the sheer variety of answers covering where any investment
might be going that there is a very broad view of what constitutes technology. While some
make mention of Computer-Aided Facility Management (CAFM), Enterprise resource
planning (ERP), Building Information Modeling (BIM) and remote devices for field work,
the variety of answers reflects a wider misunderstanding of the role of technology in FM.
Among the executives interviewed it was clear that while all had an appreciation for the
benefits and applications of technology in the FM sector, no one believed the regional
industry had got to grips with the role technology might have to play.
While there is a lot of ground to make up in the appropriate application of the right
technologies in the region, some hope that this is happening may be seen in respondents
claims about their organisations’ research and development (R&D) spend. Although the
responses were not technology specific, some 47 percent believed spend on R&D would
‘increase’ or ‘increase significantly’ over the next 12 months.
RESPONDENTS
Technology’s turn up
91%
47%
believe they are
using technology
to grow their
business
spend on R&D
would ‘increase’
or ‘increase
significantly’
over the next
12 months
Page 7The Facilities Management Business Confidence Monitor 2015
Q&A The technology view
Adrian Jarvis
General Manager
FSI (FM Solutions) Middle East
WHAT’S A KEY CHALLENGE OF TECHNOLOGY IN FM?
The big thing is making people aware that not all things are driven by cost.
There is value to investment and looking at a proper investment can give
better returns than just buying into something to tick a box.
DO YOU BELIEVE PEOPLE ARE USING TECHNOLOGY TO GROW
THEIR FM BUSINESSES?
There’s a lot of smoke and mirrors, with a lot of people trying to jump on
the smart cities bandwagon and talking about technologies that they don’t
understand. There are a lot of people buying FM technologies to tick boxes
but they are not applying the correct level of focus to actually implement
the tool properly and therefore get proper business value out of it.
HOW DO YOU SEE TECHNOLOGY BEING DEPLOYED CURRENTLY?
You’re finding that some of the employers are getting quite savvy around
technology and using it to measure and monitor contractual output. Yet
most of the FM providers still think of input based contracts, rather than
using the technology as a means to be more efficient and actually show
their clients they are doing the job they were contracted to do in a timely
and cost effective fashion. Our lifeblood is technology, but we know if it is
not applied properly it’s not going offer any value.
WHAT’S YOUR PERFECT TECHNOLOGY SCENARIO?
In a perfect world, technology gives visibility to the work of FM. It can help
people to understand that FM actually does something that is tangible
and real and something that the wider populace should be more aware of.
People should try to be more proactive in the way they contract with service
providers and use measurement to help both parties improve, as they
move toward output based contracts.
People should try to be more proactive in the way they contract with service
providers and use measurement to help both parties improve, as they
move toward output based contracts.

8. “Growth in the market
but also thin margins
and more competitors
entering, lured by the
perception of low barriers
to entry”
Survey Respondent
With abundant confidence about the prospects for the
economic performance of their businesses from a vast
majority of those who took the survey. 93 percent were
at least as confident about the next 12 months as they
had been about the last, if not more so - there is a clear
optimism about the FM industry in the region from those
who are in the business.
While that’s good news for established businesses,
executives interviewed think it might be tougher than
expected for any new entrants. While it is easy to set up
and get a foot hold, at least in the UAE, several agreed that
with a number of good players already in the market, it
would be difficult for a new company to gain any significant
share unless it was through acquisition or partnership.
As businesses look ahead, 45 percent of respondents
believe their business objectives are based around a
growth in revenue, up to 20 percent per annum. A further
18 percent thought that more rapid growth - above 20
percent per annum - was on the cards.
Sale of businesses, or acquisitions drew very little in the
way of interest from respondents.
Opportunities identified by individual respondents included
expansion in retail, hospitality and social infrastructure,
as well as the array of new commercial developments.
Challenges identified clustered around staffing, cash flow
and competition.
Both cash flow and competition were highlighted as
barriers or obstacles to success in the next 12 months by
39 percent and 55 percent of respondents respectively, in a
question where they had to pick their top three options.
The consistency of the responses in these areas, across
different questions, shows the significant role staffing,
cash flow and competition will play in determining whether
or not businesses are as successful as people hope over
the next 12 months.
The Facilities Management Business Confidence Monitor 2015Page 8
“Our business will grow however
margins are being squeezed to
the point that a lot of business is
becoming unattractive”
Survey Respondent
“Not being able to pass on
inflationary cost increases
to customers (e.g. staff
accommodation costs)”
Survey Respondent
CHALLENGES
Challenges and opportunities
OPPORTUNITIES
“Whilst demand from owners
should be robust, the overall UAE
economy prospects has been
exaggerated in the last two years
and some “reality check” will occur
and this will have a decelerating
effect on new investment”
Survey Respondent
“Ensuring proper cash flow,
not to be carried away by
a surge in opportunities,
be selective in taking up
projects”
Survey Respondent
“[Non]-specialised
providers promoting
themselves to be FM
providers”
Survey Respondent

9. Q&A
The business development view
Page 9The Facilities Management Business Confidence Monitor 2015
ARE YOU AS POSITIVE IN YOUR OUTLOOK AS THE SURVEY
RESPONDENTS?
I would probably put myself in the positive bracket because I think that
clients are starting to understand the importance of what FM means. There
are a lot of new units being released over the next couple of years and that
means from the owners’ perspective they want to keep their places as
nice as possible and maintain the integrity of their buildings. With more
competition out there, the nicer their place looks, the more likely it is they
can get a premium amount for their apartments.
WILL BUSINESS CONTINUE TO IMPROVE?
It comes back to the major developers in the country that, again, are
starting to change the game in terms of the kind of FM supplier they want:
no longer is it about somebody being there with a wash cloth. Obviously
they also realise a lot more now that with flagship properties they need to
maintain them, do it well and be market leaders themselves.
WHAT AREAS OF THE BUSINESS IS YOUR ORGANISATION
INVESTING IN?
We’re spending a lot of time on research and development in technology.
This year at Farnek the theme is innovating technology, so we are, and will
continue over the next few months, to introduce new technology.
AND WHAT CHALLENGES DO YOU THINK ARE OUT THERE?
As much as there are developers that are definitely believing and changing
the goal posts, there is still a large percentage that don’t, so we are still
going to have that challenge where price is king.
Jennifer Peltenberg
Director of Business
Development & Marketing
Farnek
“Clients are starting to understand
the importance of what FM means”

10. Responses to the Facilities Management Business
Confidence Monitor 2015 indicate a firmly held
belief in the health of the regional FM industry.
Central to this has been the role of the UAE acting
as a regional bridgehead for global best practices
coming into the Middle East.
No one doubts that there is still much more to
learn about how the FM industry can play a role
in the region, but there is an acknowledgement
and understanding that key proponents of well
organised FM have had some success in educating
the market thus far.
CONCLUSION

11. The nascent nature of the FM industry in other
nations is likely to continue to put pressure on the
UAE industry. This pressure will be felt in areas
such as staff retention and pay, as lucrative offers
come in for experienced professionals with some
knowledge of the Middle East. If the FM industry
takes off in a market the size of Saudi Arabia, this
pressure is only likely to intensify.
Individual FM professionals are aware of the
opportunity they may be presented with as the
industry continues to mature. This can be seen in
both the expectation of salary improvements and
in the desire among a large majority for further
professional development and qualifications.
There is a clear opportunity for a training body
to offer certifiable qualifications with an FM
specialisation, if the demand indicated in the survey
responses proves to be real. If this was offered as
an in house option by FM employers it may help to
offset a key concern around staff retention. While
the labour market in the region is always likely to
be more fluid than in more established markets,
professional staff with ambition can sometimes
value opportunities for development and education
above straight forward remuneration increases.
Competition in the market continues to increase, a
factor businesses are acutely aware of. There is a
sense, both from survey responses and interviews,
that the open nature of the market - especially in
the UAE - is impacting prices and standards as
poorly qualified businesses effectively buy work
through rock bottom offers. Equally there is a belief
that clients are becoming more aware of what FM
services should be, which may eventually force the
smaller, less-qualified start-ups out of business.
However, if there continues to be a steady flow
of new work into the market - as many seem to
expect - then it may be a while before this starts to
take effect.
As in other areas of business related to the
construction and property markets, cash flow
continues to be a key challenge. The wider industry
has battled with late payments since the onset of
the financial crisis and several respondents cited
the absence of effective banking support as an
aggravating factor. The FM industry is not alone in
facing these challenges regionally, but it will likely
have to find its own solutions.
If people’s expectations of a busy market are met
in the coming months, bidding for the right work
at the right price will be essential if companies are
going to be able to provide value and innovation at
a profitable margin.

12. Report released at FM EXPO 2015.
Visit www.fm-expo.com
BIFM
The British Institute of Facilities
Management (BIFM) is the professional
body for Facilities Management (FM).
Founded in 1993, we promote excellence
in facilities management for the benefit
of practitioners, the economy and
society. Supporting and representing
over 15,500 members around the world,
both individual FM professionals and
organisations, and thousands more
through qualifications and training.
We promote and embed professional
standards in facilities management.
Committed to advancing the facilities
management profession we provide a
suite of membership, qualifications,
training and networking services
designed to support facilities
management practitioners in
performing to the best of their ability.
FM EXPO
FM EXPO, the only largest event in
the middle east region that connects
professionals from the facilities
management, building maintenance,
hygiene, health and safety, energy
and environment industries, all under
one roof.
I-fm.net
i-FM, the award-winning web-based
news and information service catering
to the needs of the facilities management
community.
With a reputation for top-quality news,
features, comment and research, we
have grown and developed with the
industry - always maintaining our
distinctive focus on the FM marketplace.
Updated every business day, the site
delivers a unique service – easily
accessible, fully searchable and
highly topical.