Bahrain FM: Rising above the odds

 

The future of the soft FM market in Bahrain is bright. The country's strong economy, growing population, and government focus on sustainability are all driving demand for FM services

 

Filed under
Facilities Management
 
June 22, 2023
 
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 Bahrain FM: Rising above the odds
 

Cleaning and soft FM market in the Kingdom of Bahrain Soft Facility Management (FM) Services in Bahrain is a rapidly growing market, with several challenges and opportunities, Cleaning is leading that market.

The country's strong economy and growing population are driving demand for FM services, while the government's focus on sustainability and green initiatives is creating new opportunities for FM service providers.

Lack of skilled labour in Bahrain

One of the biggest challenges facing the soft FM market in Bahrain is the lack of skilled labour, due to skilled labour's high cost, compared to the industry profit margin, which increases the business risk for medium and small businesses. The country has a relatively small population, and the number of qualified FM professionals is limited. This has led to a shortage of qualified workers, which has driven up wages and made it difficult for FM providers to find and retain high-calibre staff.

High cost of business
Another challenge facing the soft FM market is the high cost of doing business in Bahrain. The country has a high tax rate, and the cost of labour and materials is also relatively high. This has made it difficult for local FM providers to compete with foreign companies, which often have lower costs.

Bahrain - rising despite the challenges

Despite these challenges, the soft FM market in Bahrain offers several opportunities. The country's strong economy is expected to continue to grow,which will drive demand for FM services, part of the growth of the market is attributed to the increasing demand for integrated facilities management solutions, rising focus on sustainability, and growing adoption of smart technologies. The government's focus on sustainability and green initiatives is also creating new opportunities for soft FM providers.

The rise of green FM

One of the most promising opportunities in the soft FM market is the growth of green FM. Green FM is a type of FM that focuses on sustainability and environmental protection. This includes using environmentally friendly cleaning products, recycling and waste reduction, and energy conservation. The government of Bahrain is a strong supporter of Green FM. The government has set several sustainability goals, and it is working to make Bahrain a more sustainable country. This is creating new opportunities for FM providers that can offer green FM services.

The future of soft FM in Bahrain

The future of the soft FM market in Bahrain is bright. The country's strong economy, growing population, and government focus on sustainability are all driving demand for FM services. The soft FM market is expected to continue to grow in the coming years, creating new opportunities for FM providers, also it is the type of market that, if it did not grow will not collapse, and it will maintain its demand, this is true for all FM services either Soft or Hard.

The soft FM market is not so sophisticated but also requires a quite good deal of shrewdness to be able to maximise your profit and not to play on the margin of cost covering. A big part of that lies in a mixed portfolio where the service provider minimises the risk by providing more than one service, and part of those services to the least competitive market niche.

Many of the unserved areas in the niche soft FM market are currently served by non-soft FM service providers, which fill the void in the market and provide services because specialised service providers are not available. The residential housekeeping industry, for example, is currently served by labour providers without focusing on quality or customer satisfaction, as nonqualified or unskilled workers are used.

Proximity to the booming KSA market

Another advantage of professional soft FM providers is the proximity to the Saudi mega market, especially the eastern province. The demand is huge due to a large number of mega projects and the elevation of service standards in Saudi especially after the issue of a national guideline for assets and FM management by the Government Expenditure & Projects Efficiency Authority

(EXPRO). The guideline sets minimum requirements for FM services including soft services. 

Professional service providers, or those capable of meeting these requirements, can take advantage of an opportunity that is very high compared to current market levels in the region.

Here are some of the key trends that are shaping the soft FM market in Bahrain:

  • The growth of green FM 

As the government of Bahrain and businesses in the country become more focused on sustainability, there is a growing demand for green FM services. FM providers that can offer green FM services will be well-positioned to succeed in the future. Those who can't transform to green FM will phase difficult times.

  • The rise of technology
    Technology is playing an increasingly important role in the soft FM market. FM providers that can use technology to improve efficiency, productivity, and end-user satisfaction will be at a great advantage.
  • The availability of soft FM niche markets that are still not satisfied, by professional service providers.

  • The focus on customer service
    In today's competitive market, customer service is more important than ever. FM providers that can deliver excellent customer service experience will be more likely to win and retain clients.
  • The proximity to the Saudi mega market makes the market expansion less challenging compared to the Kingdom of Bahrain's limited market size.

The soft FM market in Bahrain is a dynamic and growing market, and continuously changing which makes it a great challenge for those who cannot figure it out quickly and act fast on the opportunities. FM providers that can adapt to the changing landscape and meet the needs of their clients will be well-positioned to succeed in the future which does not come by default and require a great deal of focus and dedication.

About the author:
Bader Salmeen is a Facilities Management Consultant. He has previously worked as the Director of Facilities Management at United Facilities Management in Kuwait, as the Director Projects at Gulf Technics Bahrain and Director Project & Support Services Director Project & Support Services at Hisham Abdulrahman Jaffer (HAJ), Bahrain.