Oman Facility Management Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Oman Facility Management Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Oman facility management market is expected to grow at a CAGR of 13.52% during the forecast period, 2022-2027. Facility management comprises a wide range of solutions and services influencing enterprises' efficiency and productivity. The new management system establishes a benchmark for driving effective facility management principles across Oman.

· Adopting integrated facilities management (IFM) across Oman FM vendors has created ample opportunities for the market. With immense pressure on businesses to operate as efficiently as possible and take care of their cash flows, offering integrated facilities management has led the end-users to incur lesser costs for regular tasks. Therefore, businesses opted for the strategic approach to cut costs by pooling more tasks under an integrated umbrella.

· ISO 41001 is an international standard for a facility management system. It offers a framework to implement, develop, and maintain the ideal benchmark of effective facilities management across industry sectors worldwide. Therefore, a Facility Management Standard that sets apart the industry by adopting global best practices and policies has offered a win-win situation for FM organizations and customers in the country.

· Oman has drafted its Vision 2040 to boost future developments in the country. The knowledge-based population and societies will empower the future vision of the country. With the help of industrial growth, the country wishes to join the developed countries worldwide. With the help of building smart and sustainable cities and technologically-advanced infrastructure facilities, the country aims to be a pioneer in the Middle East region.

· However, the facility management market is in an emerging stage in the Oman ecosystem. The significant demand from the commercial sector players has grown considerably in the past few years. However, the country's FM market consists of several smaller and local vendors, which poses a significant challenge in terms of pricing pressure, lower margins, barriers to entry in the market, etc. The players must standardize the offerings for diverse market needs in a fragmented market. Local players with fewer international relationships led to fewer adoption of technologically-advanced solutions, which will be a major threat with a long-term effect.

· In the first phase of the COVID-19 pandemic, the Oman facility management market witnessed a significant decline in growth (implementation of lockdowns, work-from-home scenarios, etc.). The lockdown effect additionally led to the labor shortage across the facilities and the facilities management companies owing to the majority of the workforce hired from foreign countries. Hard facilities management services like heating, ventilation, and air conditioning have also recorded significant growth during the country's pandemic.

· Soft services such as cleaning, recycling, security, pest control, handyman services, grounds maintenance, and waste disposal have become mandatory activities across the commercial sectors.

· Hard and Specialty services have also been added to an FM company's portfolio to offer an end-to-end solution. Oman's real estate sector and growing investments across construction activities have led the building management companies to outsource the facility management to a third-party vendor.

· Moreover, in the sheer volume of contracts, single, bundled, and the number of integrated FM services are being demanded increasingly. The same benefits are reduced costs, time service delivery, contractual service, no equipment maintenance, etc.

· Also, the advancement in the form of adherence to global service delivery standards such as ISO and BICS, for instance, along with the usage of automated equipment, have been optimizing time and efforts to deliver superior quality.

· The opening of Mall of Oman in 2021, with 145,000sqm of retail space, a variety of dining outlets, and a range of exciting lifestyle experiences, further led to the market's growth. The rising GDP also drives the demand for Outsourced FM services in the country.

· Oman has developed an excellent infrastructure to meet the international and external requirements for economic development. As the country's commercial industry gathers the benefits of its long-term approach to innovation, this has defined the sectoral growth over the forecasted period. The country's health care system has reported significant achievements in health care services and preventive and curative medicine in the last four decades.

· In March 2021, the Madrid Chamber of Commerce revealed that Oman offers a wide range of business and trade opportunities. Oman is strategically located in the Middle East and has a population of 5 million.

· Its economy is based primarily on oil and gas, but it is increasingly aware of the need to diversify. Sectors such as tourism and the agri-food industry, in which Spain has significant experience, can benefit from diversification.

· The country has observed significant construction projects in the past few years. According to World Bank, it is estimated that 7,857 businesses will be registered in the country by the end of 202. With a forward outlook toward foreign investments and commercial service players' growth, the country has observed many construction projects in the past few years.

The Oman FM market is fragmented, with local and international players possessing significant years of industry experience, and the intensity of the competitive rivalry is high. The companies keep innovating and enter into strategic partnerships to retain their market share.

· March 2022 - Petroleum Development Oman (PDO) signed contract extension agreements with several Super Local Community Contractors (SLCCs), which reflects the great success and the maturity achieved by these companies in the oil and gas sector. The company signed a contract with Sakan Facility Management, an SLCC consortium, to build an integrated station to provide land transportation services for employees working in the concession areas.

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