Around 75% of the company’s business came from existing clients while the delivery of cost management services represented 70% of its workload
Thomas & Adamson (T&A), the international project management and cost consultancy firm, reports strong growth in business turnover supported by an increase in staff headcount in the Middle East, in the first half of its 2023 financial year (FY2023). Turnover and staff headcount grew by 25 and 20 % respectively, already representing remarkable growth compared to FY2022.
The strong performance in the Middle East has been driven primarily by the UAE. According to Mordor Intelligence, the UAE construction market size in 2023 is $38.99 billion, with $145 billion in projects currently underway, and a project pipeline of approximately $125 billion.
Within the UAE, the booming Dubai economy continues to fuel construction. According to data from the Dubai Media Office, the city’s real estate sector tracked total transactions of $77.59bn in H1, 2023, with the Dubai Land Department noting that 392 real estate projects are under development. During the same period, the city welcomed 8.5 million international visitors and saw the Dubai Financial Market rise 14% with a $19.33 billion gain in value.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council also said that Dubai has strengthened its status as one of the world’s top three hubs for high-net-worth individuals and that the city is one of the fastest-recovering from the COVID-19 pandemic.
Despite being a high-growth market, inflation across construction prices, dynamic market conditions and supply chain challenges, including high levels of construction price inflation have given rise to a desire by clients to minimise timeline deviations and cost overruns. The market has seen proven project management (PM) and cost management (CM) firms such as T&A win work to tackle these constraints. In late 2022, Saudi Arabia-based developer Dar Al Arkan said it was forecasting a 15 to 20% increase in costs in 2023.
In the FY2023 period to date, the Middle East accounted for 15 % of T&A’s global turnover and is on track to set a new high watermark for the region in the post-pandemic period. 80 % of T&A’s Middle East business came from Dubai, while 13 % came from Saudi Arabia. The remainder of the work was sourced from several other regional markets, including Abu Dhabi, Sharjah, Ras Al Khaimah and Egypt.
“We are pleased with the recent performance we’ve achieved in the Middle East and look forward to closing the year with stronger results still. It’s been a pleasure for Thomas & Adamson to work with such a diverse mix of valued clients across the region this year, and we look forward to supporting their development aspirations in the future,” says Zander Muego, Partner at T&A.
The CM service line represented 70 % of T&A’s workload during FY2023 to date, with the balance being PM-led engagements. The pipeline for Q4 2023, however, shows a 40 % increase in PM projects with T&A looking at a more balanced split between its two core service offerings. In addition, 75 % of its business came from existing clients, with the balance coming from new clients.
Muego adds, “We remain committed to being a trusted partner and working closely with clients to deliver excellence, efficiency, and satisfaction on projects across sectors. Our extensive track record of successfully delivering projects over 85 years is a testament to that commitment, and it’s great to see it is appreciated through significant repeat business from our regional clients, in addition to a healthy amount of new business.”
In addition to residential projects, T&A is engaged in developments in several other sectors, including cultural, F&B, workplaces, masterplanning, education and retail. Middle East clients during FY2023 to date include private developers, consultants, and government, reflecting the strengths of local economies and T&A’s proven capabilities in adding value to real estate projects.
On a global level, T&A has also tracked significant gains. Turnover to date in FY2023 is 28 % higher than what was achieved in FY2022, while staff headcount grew by 17 %. New work secured during the period is split 75:25 between the private and public sectors respectively.
