The second in a series of short columns from ASSETS magazine, published by the Institute of Asset Management in the United Kingdom.
Next posting - Myth's of RCM number 4, RCM does not support Whole-of-Life Asset Management
Surging oil costs, rapid population growth and the desire to diversify the regions income streams has made the Middle East one of the world’s boomtowns. The scale is unimaginable; everywhere you look there are new towers being built, whole new suburbs, vast expansion projects, and massive infrastructure projects.
And, as astute business people, they have had no hesitation to invest in the systems, knowledge and skills required to develop truly world class asset management programs. However, unlike other regions of the world the reasons are different.
In the West, Asset Management is generally used as a means of increasing cost effectiveness and managing risk. Wise goals maybe, but here, at this time, the end goal is one of sustaining performance, maximizing production opportunities, and customer satisfaction. Cost effectiveness, worthy as it is, is the least of concerns here.
Take the booming Dubai real estate markets. Depending on who you talk to there are between 100,000 and 300,000 new residences coming online within the next twelve months, with more being announced and planned every single day. The horizon is littered with tower cranes in every direction. Not only that, but here they build islands!
In Saudi Arabia they are building an entirely new industrial city, other gulf states are also in the throws of their own gigantic expansion projects, and then there is the infrastructure to support all of this.
Regardless of what happens with the price of oil over the next 5 -10 years, it would take a brave man to bet against this region continuing to grow as an economic powerhouse. And there can be no doubt that strong asset management and reliability will continue to underpin this as the vision becomes reality.
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