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As one of the fastest growing sectors in the country, the government’s pledge of over $200bln on an infrastructure-building program has impacted the economic diversification efforts
Doha: The Facility Management (FM) market is currently experiencing a growing demand, fueled by urbanization, infrastructure expansion, and economic diversification.
According to the latest data by Mordor Intelligence, the industry’s strong development estimates the market to reach $6.74bn in 2024 and is expected to amount to $10.93 bn in the next five years with a CAGR of 10.15 percent during the forecast period.
Analysts strongly point out the country’s rapid infrastructural development and increasing public awareness are key FM sector enablers. The report states “With a heightened focus on cleaning, disinfection, effective maintenance of facilities, and efficient space management, coupled with numerous infrastructural projects, the facility management market is poised for steady growth in the coming years.”
The report highlights that the sector is on the rise due to the nation’s prompt economic augmentation and government initiatives. It said “This surge offers FM companies opportunities to showcase their expertise in facility maintenance and optimization.”
Over the decades leading up to hosting mega events in the country, Qatar has positioned itself as a resilient investment destination in the region. Sources told The Peninsula that the country’s geolocation, progressive economic policies, and strategic partnerships and projects are some of the primary reasons attracting foreign direct investments to Qatar.
However, the industry’s growth also comes along with certain challenges. Market experts in the country note that FM grapples with a “shifting regulatory and legal environment.” These pose gradual impediments for the companies, directly affecting their operations, compliance, and efficiency.
On the other hand, top industry leaders also outline that the expansion and evolution of Qatar’s real estate landscape have “far-reaching implications” for the market. The latest report by Qatar Financial Market Forum 2024 remarks that Qatar is witnessing various real estate projects at the moment.
As one of the fastest growing sectors in the country, the government’s pledge of over $200bn on an infrastructure-building program has impacted the economic diversification efforts due to large-scale transportation projects and the rapid growth of tourism, education, and real estate builds.
The report says “This vision, in turn, amplifies the need for top-tier facility management services and opens substantial avenues for FM service providers.”
On the other hand, the Qatari regime also introduced a range of policies to draw numerous FDIs including favorable regulatory frameworks, tax incentives, and simplified business procedures. Furthermore, the Government granted consent for foreign investment and foreign property ownership laws to be 100 percent in the majority of the sectors.
Projects including the significant cultural landmark - Simaisma, which spans up to 8 million sq m with a 7 km waterfront along Qatar’s eastern coastline, developed by the Qatari Diar Real Estate Company offer a myriad of investment opportunities for the private sector and is poised to bolster the FM market in the years ahead. |
