The Facility Management market in Qatar is showing positive growth, driven by the rise of smart cities, and the growing demand for integrated FM solution: Ken Research

21-Feb-2023   Mr. Majed Zeitun, Designation: CEO, Elegancia Facilities Management, Qatar   Author: Twinkle Karnawat

In conversation with Mr. Majed Zeitun, CEO, Elegancia Facilities Management, Qatar, we tried to understand the Facility Management Industry in Qatar. Further, we discussed about sub-contracting which happens in the market.

“Construction companies are attempting to enter the Facility Management Market, they may have the expertise and resources to provide some FM services, but are not well equipped to provide all the diverse services required to manage a building's entire lifecycle.”

Q1) How would you explain Qatar's Facility Management sector pre-pandemic?

Only a few companies for integrated facilities existed prior to COVID-19, but the Facility Management industry saw constant expansion. Due to the development of new infrastructure and real estate, the nation's economy was expanding quickly, also, the market was less congested. The market was too small to support large initiatives. When the government used to issue tenders, there was a lot of opportunity because major FIFA-related projects were on the horizon.

Q2. What were the effects of pandemic on Facility Management industry in Qatar?

Even if there was a covid slow down, FM was doing more or less fine. Facility Management businesses were forced to create new cleaning and disinfection processes, social seclusion techniques, and heightened security measures fast to adjust to the new norm. The industry also saw a change towards automation and digitization to minimize human involvement and increase productivity. However, there were no new tenders.

Q3. What is the size of the FM Industry in Qatar?

Although it is difficult to pinpoint the exact size of Qatar's Facility Management market, it is obvious that the industry is expanding quickly; the market can be estimated to be in the range of USD 1.5-2 billion, depending on the services we are including as services like waste Management are enormous.

Q4. Could you briefly explain the Facility Management market's value chain?

The value chain for the Facility Management market is complex, with numerous players involved in providing clients with high-quality services. For facilities to be effectively managed, productive, and occupant-safe, these parties must work together effectively.

Service providers are the businesses that provide Facility Management services, including energy Management, cleaning, security, and more. They are the key people in the market and in charge of providing the services that customers demand. Subcontractors are the organizations or people that service providers hire to carry out particular activities or services, such electrical or plumbing work.

Q5. Can you elaborate on how FM businesses conduct subcontracting?

Process of subcontracting in FM businesses typically involves-

Initially determining the need whether a certain service or task that the FM business cannot or does not want to execute internally is identified as being necessary. This may cover everything from professional cleaning services to HVAC upkeep. The FM business then assesses potential vendors or contractors who possess the knowledge, tools, and experience necessary to carry out the requested task or service. This assessment may involve looking through their credentials, past performance, and cost.

Following that, the FM company negotiates contracts with the chosen subcontractor, specifying the terms and conditions for the project's scope, cost, and timing. The FM company monitors the subcontractor's work to make sure it adheres to specifications and is finished on schedule and under budget. This could entail frequent check-ins, progress updates.

For example- during the World Cup, let’s say some company needed 7000 personnel to provide certain service, but only had 5000. Of those, 2000 were employed through contractors and were temporary employees, while the remaining 5000 were permanent employees paid based on pay rolls.

Q6. How are people hired for long-term projects?

It is primarily determined by the project's duration. The employer may decide to extend the project's duration, renew the worker's contract, or cease the employee's employment at the conclusion of the project. Overall, the hiring process for FM projects of varying duration is similar, with some variations in terms of recruitment channels and the duration of the contract. In order to guarantee that projects are executed effectively and to a high degree, FM businesses often strive to hire employees with the appropriate skills and experience.

Q7. What is the typical length of FM projects?

While the duration of Facility Management

projects can vary widely depending on the type and scope of the work being performed, it is possible for some projects to last for multiple years.

In some cases, long-term FM contracts may be established between a client and an FM company, where the company agrees to provide ongoing services for a specified period, on an average three years. These contracts may cover a variety of services, including building maintenance, security, cleaning, and other Facility-related tasks.

Q8. You previously spoke about how construction businesses are attempting to enter the FM sector in Qatar. Could you please elaborate? Also, who are the major FM players in Qatar?

It's usual for construction firms to add Facility Management services to their list of offerings and skill sets. The possibility of long-term contracts and recurring revenue streams is what drives construction businesses to enter the FM sector. It's crucial to keep in mind that FM is a distinct and specialized industry, and construction firms seeking to get into the market will need to develop knowledge and skills in fields like asset Management, energy Management, and sustainability. They could have to spend money on building or buying software solutions to support FM activities, as well as on training and employing FM specialists.

There are roughly around 9 -10 firms who primary provide Facility services and are not involved in construction work. Al-Asmakh a-to-z who has a lot of manpower, Mosanada, EMCO, COMO, FMM and more.

Q9. How are the FM market policies in Qatar?

While ensuring that services are delivered to the greatest standards of quality, safety, and environmental responsibility, the laws and regulations in Qatar for the FM sector aim to encourage the growth and development of this business.

FM service providers in Qatar are required to be registered with the Ministry of Commerce and Industry (MOCI) and possess a current business license. Companies must comply with the MOCI's requirements, which include possessing a certain amount of capital and qualified people. FM businesses must abide by waste Management and recycling rules issued by the Qatar Environmental Ministry. The National Vision 2030 of Qatar is a long-term strategy to further the nation's economic and social growth. This strategy includes measures to enhance urban growth and infrastructure.

Q10.What does Qatar's Facility Management industry's future hold?

In recent years, Qatar has invested heavily in developing world-class sports facilities and infrastructure to host major international events, including the 2022 FIFA World Cup. This has generated a significant demand for smart Facility Management services, as the country seeks to ensure that these facilities are operated and maintained to the highest standards of efficiency and sustainability.

As the country continues to invest in infrastructure and urban development, the demand for smart, sustainable FM services is likely to increase, creating new opportunities for FM companies to expand their services and capabilities.

For more insights on the market intelligence, refer to the link below: -

Qatar Facility Management Market

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications