Facilities management (FM) in the Middle East is entering a transformative era in 2025. Projected to reach almost US$75 billion by 2029, the industry faces exciting opportunities and challenges while at the cusp of adopting new operating models that prioritise technological innovation, sustainability and upskilling. For FM organisations, 2025 will be a year to redefine FM operations, enhance capabilities, strengthen supplier relationships and embrace data-driven strategies to align the regional sector with global advancements, ensuring its continued growth and impact. Rakesh Kishan, Chief Executive Officer of Trascent Arabia and Managing Principal of Trascent, tells us more.
Rise of technological integration
Technology will play a pivotal role in FM, with Artificial Intelligence (AI), robotics and process automation leading the way. These innovations will transform how services are delivered and consumed, creating seamless user experience. Imagine employees using mobile devices or voice-activated systems to interact with their workspaces – turning on lights, adjusting room temperatures or pre-ordering coffee—all seamlessly integrated through smart technologies.
This shift, however, brings with it the critical need for upskilling within FM organisations and among service suppliers. The traditional reliance on low-cost labour must give way to investment in skilled professionals capable of managing advanced systems to unlock productivity and efficiency gains. Global trends in advanced markets demonstrate that increased technological adoption in FM leads to significant productivity improvements. For instance, Frost & Sullivan projects that building management systems (BMS) will generate over US$500 million in GCC revenue by 2027, as building owners increasingly adopt these smart automation solutions. Regional FM organisations must follow suit by centralising operations, adopting remote management tools and leveraging automation to remain competitive and future-ready.
Procurement process evolution
Legacy methods of procuring FM services sometimes are disproportionately focused on purchasing labour, often at the lowest cost. In advanced FM markets such as the US, UK and many parts of Asia, procurement practices for FM offer a marked contrast. RFP requirements in advanced FM markets emphasise experience-based specifications in addition to outcomes, technology enablement of services, innovation and transformation. Advanced FM markets are purchasing FM services in a way that is encouraging suppliers to innovate and technology enable – which means upskilling their capabilities to deliver better services. Legacy methods of procurement often seem to have a singular focus – lowest labor cost for a number of people. Procurement strategies for FM in the GCC have to also transform to keep up with the evolving needs of the region.
Upskilling and professional development
The days of prioritising cost reduction at the expense of expertise are gone. With AI, robotics and smart systems becoming more prevalent, FM professionals must develop advanced technical and managerial competencies to facilitate these innovations effectively. In fact, according to PwC, 61% of employees state they need to learn new tools and technologies to perform their jobs.
Organisations must prioritise training and development to cultivate a workforce capable of leveraging new tools to deliver superior service. With government strategies like Vision 2030 propelling Saudi Arabia toward global leadership in business, technology and tourism, the FM sector must build a skilled workforce to manage the advanced infrastructure supporting these ambitions.
Companies must shift from cost-cutting to value creation by hiring skilled professionals and investing in a culture of continuous education. Enhanced training will improve service quality, operational efficiency, and client satisfaction. Technical asset and data management, sustainability qualifications and soft skills are in demand.
Additionally, FM organisations must emphasise data literacy, enabling professionals to interpret insights and make informed decisions. This commitment to professional development will position the sector to meet the challenges of a rapidly evolving market while maintaining competitiveness.
Sustainability takes centre stage
With several regional governments taking a net zero future approach, sustainability is no longer a buzzword; it has become a strategic differentiator for the FM sector. In 2025, the push toward carbon neutrality and sustainable operations will intensify. Clients are increasingly looking to FM providers to help them meet ambitious sustainability goals across the entire lifecycle of real estate assets—from design and construction to operation and decommissioning.
As simpler measures, like energy-efficient lighting or waste reduction programmes, get exhausted, organisations must explore innovative ways to embed sustainability into every phase of their operations. This holistic approach includes managing building materials, recycling and integrating green certifications into operational frameworks. Suppliers will also be held to higher standards and align their contracts with client sustainability goals, emphasising accountability and transparency.
Sustainability will extend to areas like material recycling, water conservation and green certifications, making it a key differentiator in a competitive market. Companies that proactively address environmental goals will create long-term value for their clients and the broader community.
Power of data and centralised systems
Data will become the backbone of FM operations in 2025, enabling organisations to optimise decision-making, enhance efficiency and maximise ROI. Centralised systems and real-time analytics will provide FM leaders with insights needed, from capital expenditures to service delivery, to improve asset performance, reduce costs and deliver superior services.
By leveraging this, organisations can identify patterns and drive actionable insights like implementing predictive maintenance, optimising resource allocation, better lifecycle management of assets and making smarter investments. For example, real-time analytics can identify inefficiencies, enabling timely interventions and reducing operational disruptions. Data-driven strategies will also allow FM companies to operate more effectively, enhance client experiences and build long-term resilience.
The year 2025 marks the beginning of a transformative journey for FM in the Middle East. Facilities management is evolving beyond maintaining buildings to driving innovation, creating value and supporting sustainable operations. As the sector embraces advanced technologies, sustainability, upskilling and data-driven strategies, FM organisations will redefine client experiences and elevate the profession’s role in regional growth. By navigating these trends, FM leaders have the opportunity to set new benchmarks for excellence, ensuring the sector’s resilience and future success.