< Previous COVER STORY www.fm-middleeast.com20 May 2021 holistic approach to digital initiatives are Transguard’s award-winning training programmes, which saw instructors providing classes for both site and headquarters staff in Lean Six Sigma, customer service, financial literacy and other topics. All told, more than 2,000 employees have taken these virtual classes in the last year. OUR DUTY OF CARE FOR OUR STAFF AND THE ENVIRONMENT In the midst of all of this, we were also keenly aware of our responsibility for our site-based staff, many of whom had their contracts paused or even cancelled, especially at the beginning of the pandemic when a number of our clients had to make difficult decisions to keep their own businesses afloat. We launched a number of CSR initiatives to keep our team happy and engaged, including our first virtual talent show (a live broadcast into company accommodations and to several new streamlined processes over the last year, including a digital overhaul of our room allocation process, which has allowed for more efficient accommodation assignments for site-based employees, who are also now deployed faster thanks to an enhanced rostering process that was also reengineered over the last few months. The payslip generation process was also subject to an optimisation review during this time, with the result of a 1,000% improvement in timelines for payslip generation. Transguard’s portfolio of self- produced apps also grew over the last six months. This started with the launch of a new app that was created to reduce paperwork in the company’s chauffeur driver division. The in-house produced app also tracks all trips, kilometres travelled, fuel cost per trip, photos and logs of any damage and even calculates the revenue per trip per day. Also in the final stages of in-house development is a meal management app for Taste of Home, Transguard’s catering division: Once complete, anyone with a Taste of Home meal plan will be able to review upcoming menus, change their meal preferences and redeem meals using the app’s ticketing feature. Not only is the new app anticipated to improve the dining experience for Taste of Home subscribers (both in Transguard’s own accommodations and in other accommodations serviced by the catering company), the resulting efficiencies in the back office translate into significant hard savings. Meanwhile, a new mobile app for technicians in Transguard Living, the consumer division of Transguard Group, introduced immediate improvement in terms of staff utilisation and travel time between jobs. Also benefitting from the company’s The UAE’s most recognisable security team also expanded its sizeable reach when it won the contract to be the sole security provider for the country’s largest bank as well as an agreement that saw Transguard add the extensive residential portfolio of the nation’s largest property developer to its existing contract, which covers the developers’ Hospitality and Entertainment portfolios. COVER STORY www.fm-middleeast.comMay 2021 21 HQ), quiz nights for HQ and site- based staff, and in October 2020, the return of the Transguard Pink bus and the distribution of pink-branded masks during October’s breast cancer awareness activities. Other virtual events throughout the rest of the year, as well as the very recent launch of our TikTok channel, represent the true out-of-the-box thinking that have served to keep our entire workforce connected with one another and the company. Just as we shaped solid solutions for our clients in the face of uncertainty, we’re proud that we took the initiative to provide our site-based staff with something solid to cling to against a landscape of ambiguity. In October 2020, Transguard celebrated its first accreditation for its CSR programmes when we were awarded the CSR Label from Dubai Chamber. The certification comes four years after we started our CSR division, which focuses on not only the health and welfare of its employees but also on the environment. We also celebrated a number of sustainability milestones in 2020, including achieving net-zero status in one of our accommodations, which we achieved thanks to energy saving initiatives and a rooftop solar panel plant that produced nearly 140,000 kwH in a single accommodation in a three- month period. As of February, the entire project resulted in a carbon offset of 425 metric tons, which is extraordinary. Thanks to a paperless campaign, Transguard saved more than 3.3 million sheets of paper in 2020 alone; the company also recycled nearly 400 kgs of plastic in its HQ. BRINGING OUT THE BEST IN US A year on from the UAE’s lockdown, I’m incredibly proud of how Transguard rose to the challenges of Covid-19. We found ways to adapt to our new normal – instead of being driven by fear, we embraced everything Covid threw at us and adjusted accordingly. Most importantly, though, each of us gained a fresh perspective on how best to focus on our customers. As the UAE appears to be firmly back on the road to recovery, I think the challenge I put forward in 2020 is even more apt today than it was a year ago. The reality is that people have short memories, and while FM was front-of-mind while we were all locked down, once the masks come off for good it is only a matter of time before the clock resets to pre-pandemic apathy. The FM providers who will thrive in a post-pandemic world are those who never take their foot off the pedal and who never look back. This is not the time for complacency; only innovation and a fierce focus on customer satisfaction that is built on solid service delivery will keep our industry relevant and vital. In 2020, Transguard expanded its portfolio to include contracts with all major supermarket chains in the UAE and to provide manpower for warehousing, delivery services and more for these essential service providers. SAUDI FOCUS 22 May 2021www.fm-middleeast.com In this Saudi focus report, FM Middle East interacts with a few FM players in the Saudi region to understand why it’s called the biggest FM market in the region A ccording to a MEFMA (Middle East Facilities Management Association) report, the Facilities Management market in Saudi Arabia is the largest in the region, accounting for around 55% of GCC spend. As per the report, “the current FM market in the Kingdom is worth around $20bn – larger than previous estimates as a high proportion of FM services are delivered using basic manpower supply companies rather than FM service suppliers. Even taking this into account, the market is small relative to the scale of the country’s building infrastructure, reflecting the historic low cost, low quality approach to building maintenance. We estimate that just under one third of the market –predominantly in the public sector - is currently outsourced.” Trying to get some more perspective from the above statement, Raymond AL Salhani, FM business unit director THE BIGGEST MARKET? at Alhajry Overseas, says: “There has been a vertical construction evolution in the Kingdom of Saudi Arabia during the last decades. For instance, there has been a rise in residential communities, commercial and industrial cities, recreational parks, mega hospitals, towers, schools, airports, and retail plazas. On account of the large land area of the country and its financial capabilities, Saudi Arabia is a distinctive region for the facilities management industry. Facilities management is SAUDI FOCUS May 2021 23www.fm-middleeast.com Raymond AL Salhani, FM business unit director at Alhajry Overseas. In conclusion, AL Salhani adds that technology is a main factor in the facilities management business and it is a must nowadays. He elaborates: “Saudi has the latest technologies in the FM industry and tonnes of software firms are available. The key point is to use the technology the right way and if not, it will be a waste. Numerous FM service providers and clients have the systems. It has to be implemented in order to be effective and not to have it just to comply with the technical of the tenders. Training and experience in FM plays a big role in exposing how to use technology in a good way to have efficient operations and cost reduction.” essential to add value to these facilities.” Business Wire states that the soaring investments being made in infrastructural development projects, the flourishing tourism sector, and the increasing number of construction activities in the country are some of the major factors driving the progress of the Saudi Arabia facility management market. “The mushrooming infrastructure industry is a major factor responsible for the growth of the market. The Saudi Arabian government is making huge investments in various massive construction projects in the country. For instance, the government launched the 'Smart City' initiative in 2017, under which, it will deploy smart parking solutions, smart lighting devices, environmental pollution tracking and monitoring systems, smart cameras, and smart solid waste disposal systems in various cities across the country. “The construction of these smart cities will push up the demand for maintenance services for the smart systems, which will, in turn, boost the advancement of the market. Apart from these mega-infrastructural development projects, the thriving tourism sector of the country is also propelling the growth of the Saudi Arabia facility management market. This is because the boom of the tourism sector has boosted the requirement of various services needed for maintaining the facility such as catering and security,” the report stated. When comparing to the UAE market, AL Salhani says: “The Saudi FM market is bigger in quantity and value, whereas the UAE FM industry is considered to be more advanced from an implementation and integration point of view.” He believes that the Saudi FM market is transitioning itself from the typical operations and maintenance concept to facilities management in the true sense. The maturity is noticeable on the level of service providers. He says: “Firms are facilitating their staff with FM training, using the latest technology, and getting ISO 41001 certifications. For the market to be mature, both parties have to be on the same level of understanding. The clients and the proponents of FM contracts should step ahead and take measures in applying the FM concepts through new tenders and move away from the conventional ones of operations and management.” Talking about the opportunities, AL Salhani adds that Saudi Arabia is the land of opportunities for facility management as well as for many other functions and industries. “Despite the fact there being numerous FM providers, the market is thirsty for a wider range of firms and organisations. The compass is heading towards hospitality and resorts which will be another boom in the FM world in KSA.” According to Simon Allison, CEO of hotel owners’ alliance, HOFTEL, who was speaking to Arabian Business: “Saudi has massively ambitious plans. They’ve got great teams, some of the best hotel talent has been attracted there from all over the world. They’ve got great people, they’ve got plenty of money and they’ve got very coherent development plans.” On the challenges, AL Salhani says: “Any agile industry faces challenges, and facilities management is a challenge in itself. New facilities, new scopes, advanced technology, and higher expectations make FM a challenging function. The common challenge is contracting in FM. It is the contract that tones the correct relationship between the client and the service provider. We lack of good contracting models and the old styles are still occupying the majority of the contracts.” Alhajry Overseas claims that it is a main player and competitor in the FM market in Saudi Arabia, which has also established its own MEP firm, catering company and its own cleaning chemicals factory. AL Salhani adds: “This enabled us to provide integrated FM services from our resources. In addition, we are a BICS-accredited training firm. Lately, the LEED certified facility Sky Tower in AL Khobar awarded Alhajry Overseas their integrated facilities management services in one consolidated long form contract. ON ACCOUNT OF THE LARGE LAND AREA OF THE COUNTRY AND ITS FINANCIAL CAPABILITIES, SAUDI IS A DISTINCTIVE REGION FOR THE FACILITIES MANAGEMENT INDUSTRY. FACILITIES MANAGEMENT IS ESSENTIAL TO ADD VALUE TO THESE FACILITIES. SAUDI FOCUS 24 May 2021www.fm-middleeast.com John Nolan, CEO at Initial Saudi Group, says that innovative requirements of mega projects such as NEOM are forcing the FM market to grow rapidly in the region J ohn Nolan, CEO at Initial Saudi Group, believes that Saudi Arabia is Middle East’s largest economy and its FM market is already the largest in the region, accounting for around 55% of the total GCC spend on FM services. He says: “The Saudi FM market is estimated to be worth $20bn per annum compared to $10bn in the UAE. However, only 31% of FM services work is outsourced in Saudi, compared to 45% in the UAE.” GROWING WITH TECHNOLOGY Nolan believes that “technology is the main factor in moving the FM business forward and this is an area where the Saudi market possibly lags behind in comparison to the UAE”. Major construction and infrastructure NEOM is a region in northwest Saudi Arabia on the Red Sea being built from the ground up. This will also bring a host of opportunities for the FM sector in the region.SAUDI FOCUS May 2021 25www.fm-middleeast.com John Nolan, CEO at Initial Saudi Group. Talking about the challenges facing the FM market, Nolan adds that many contracts are still awarded purely on price and to the lowest-cost contractor. He adds: “This means that service delivery is often a compromise between cost and quality, which is essentially a compromise between trying to meet the client’s expectations of service excellence but within the cost restrictions they impose. “Contract periods also present challenges to the service provider. With most contract periods being awarded for just between one and three years, there is limited opportunity to invest in the technology and long-term solutions that could ultimately bring cost and quality benefits to a true service provider/client partnership.” Initial Saudi Group has been one of the few service providers to react “very quickly and very early to the changing needs of the Saudi market”, adds Nolan. Initial Saudi Group is headquartered in Jeddah, Saudi Arabia with regional offices in Riyadh, Dammam, and Dubai Nolan says: “We recognised early on that one of the key differentiators in the market was going to be technology and that is why we have invested and continue to invest heavily in FM technology solutions. “And we were among the first to recognise that more sophisticated clients are increasingly demanding more sophisticated FM solutions — demands that we are able to meet through our approach of delivering world-class fully integrated FM services that are measurable and benchmarked against international standards. “We are also extremely proud of our highly trained and experienced teams of FM professionals who share the common goal of providing service excellence by using established industry best practice.” Nolan concludes by saying: “At Initial Saudi Group our target is to focus on innovations that drive efficiencies, increase quality, deliver cost savings, improve data analytics, and ultimately benefit the user/customer interface.” projects, such as the NEOM and the Red Sea projects, are driving rapid growth in the Saudi FM market; at the same time, the sophisticated and innovative requirements of these projects are forcing the FM market in the region to mature quickly. Nolan adds: “Essentially, these landmark developments require intelligent, integrated or bundled FM service solutions, delivered via output-based and performance-related contracts, and only those service providers with a more modern approach to delivery have the capabilities to meet these requirements. “Inevitably, the opportunities presented by these landmark projects and by the major infrastructure growth in general, has meant that many international FM service providers now have a presence in the Kingdom.” Additionally, in line with Saudi Vision 2030, the country is adopting more sustainable practices and moving towards a greener economy, and this shift is creating a wealth of opportunities, not only for the energy management industry, but for the FM sector as a whole. “FM plays a vital role in driving changes to the way facilities are managed and in implementing the innovations in technology that will play a key role in making our buildings greener,” says Nolan. These changes include areas such as intelligent building management solutions; intelligent energy management, from smart technology to renewable solutions; better management of water resources; better waste management and more ‘recycle, renew, reuse’ initiatives; and connecting buildings with communities and people. Technology plays an increasingly important role in how FM services are delivered, Nolan reiterates. “From the CAFM (computer- aided facility management) system that now sits at the heart of most FM service delivery, to intelligent building management systems and smart communications devices, technology has been part of the FM tool box for some time. “However, here in Saudi, we are seeing a trend amongst the more sophisticated clients — including landmark mega projects like NEOM and the Line, as well as state-of-the-art government facilities — where they are demanding solutions that are cutting-edge FM technology including IoT technologies, remote intelligent sensing/monitoring and robotics. “Many of these technologies are very new to the market here and there is pressure for FM companies to rapidly embrace and adopt them in order to meet these client demands,” Nolan says. WITH MOST CONTRACT PERIODS BEING AWARDED FOR JUST BETWEEN ONE AND THREE YEARS, THERE IS LIMITED OPPORTUNITY TO INVEST IN THE TECHNOLOGY AND LONG-TERM SOLUTIONS THAT COULD ULTIMATELY BRING COST AND QUALITY BENEFITS TO A TRUE SERVICE PROVIDER/CLIENT PARTNERSHIP. SAUDI FOCUS 26 May 2021www.fm-middleeast.com With $1.2tn worth of projects being planned in Saudi Arabia, the FM industry needs to up its game, says Jason Ruehland, chief executive offi cer at Muheel FM AT WORK 40% technical and 60% commercial, a clear sign of the appetite to change the quality of services. Ruehland says: “Facilities Management Middle East has done a lot recently to raise the awareness of FM in the Kingdom, but I feel that associations like IFMA, IWFM and MEFMA could be doing a lot more to support the industry.” In conclusion, Ruehland says: “$1.2tn worth of projects are being planned in Saudi Arabia through 2030, about half is already under execution. More than $100bn worth of projects are at the design stage and planned to go to tender in the next two years. The FM industry needs to be ready to meet the demand and protect the Kingdom’s assets.” I n a conversation with Jason Ruehland, chief executive officer at Muheel, he says that at present Saudi Arabia “is at the starting gate of FM sector development, trailing the UAE which is still seen as the more advanced FM country in the region”. Although as revealed by other FM industry veterans in the region, Ruehland agrees that the FM market in Saudi Arabia is already the largest in the region. He says: “Lot of property services are still provided by manpower supplying companies, and this does narrow the lenses of true FM contracts in the Kingdom, which is estimated to be worth around $20bn.” Talking about the opportunities, Ruehland says that the Saudi government has launched a major initiative to upgrade the quality of FM across its portfolio of projects. He says: “In 2020, the government established Mashroat (Mashroat in Arabic means projects) to revolutionise public sector FM projects. A huge amount of Saudi’s infrastructure is government-owned, and high outsourcing rates means a large proportion of FM spend is from the public sector.” Mashroat aims to drive up asset management standards across the government estate, and address, amongst other issues, things like international best practice & standards, budgeting & cost control, monitoring & supervision, and supplier accreditation. Professionalisation of the industry offers huge potential for facilities management companies like Muheel which deliver international standards, says Ruehland proudly. Addressing one of the major challenges that the Saudi FM market faces, Ruehland adds that 65% of the population is below the age of 30. He elaborates: “The youth that are coming through are from higher education and vocational education programs, which is impressive. They are well educated, tech savvy, speak Arabic and English, and are hungry to learn and work, but not many are aware of a career in FM. “Let’s be honest, it’s never been the most attractive of industries, and most people just fall into FM rather than pick it up as a career, when the fact is that this industry contributes 8-9% towards the country’s GDP.” “The Kingdom needs more colleges and universities that teach real-world operational skills to manage facilities,” Ruehland adds. Ruehland does agree that the FM market is changing fast. “Client adoption of digital work management systems (CAFM/CMMS) and operating standards like SF20 for Building Maintenance and British Institute of Cleaning Science is on the rise. Clients are becoming more confident at implementing and managing output-based contracts, rather than input-based contracts with a defined headcount.” Recently, the Ministry of Finance changed their tender evaluations from 20% technical and 80% commercial to THE KINGDOM NEEDS MORE COLLEGES AND UNIVERSITIES THAT TEACH REAL-WORLD OPERATIONAL SKILLS TO MANAGE FACILITIES. Jason Ruehland, chief executive offi cer, Muheel.Register to attend the Middle East’s dedicated trade event for commercial interiors, from the 31st May to 2nd June 2021. WORKSPACE is an essential event for serious buyers in the office interiors community. Commercial interior designers, facilities managers, architects, end-users and retail buyers attend to source office furniture and products, grasp insights from expert leading design professionals, and network with office interiors brands. Get back to business by rejoining and reconnecting with the workplace design industry at WORKSPACE! THAT’S WHY WORKSPACE EXISTS. 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