While participants identified significant opportunities for circular FM in the Middle East, discussions also surfaced a range of structural, cultural and commercial challenges that currently limit widespread adoption. These challenges were not framed as insurmountable barriers, but rather as systemic constraints that require coordinated action across organizations, markets and policy environments.

Short-term Focus & Investment Horizons

One of the most frequently raised challenges related to the short-term orientation of investment and decision-making. Participants noted that the prioritization of immediate gains over long-term value can discourage investment in circular practices that deliver benefits over extended asset life cycles.

This short-term focus was linked to:

  • Project-driven development models
  • Short-term FM contracts
  • Investor expectations centered on quick returns

In this context, circular FM initiatives that rely on longer payback periods or life cycle optimization may struggle to gain traction without revised commercial and contractual structures.

Contractual & Commercial Constraints

Participants highlighted that short term FM contracts can limit innovation and experimentation with circular approaches. Inadequate contract language was seen as a particular constraint, especially where performance metrics, success measurement, or circular objectives are not explicitly defined.

Several participants noted that without contractual mechanisms that reward long-term performance, FM service providers may be disincentivized from proposing circular solutions that extend beyond the contract period. The absence of standardized circular clauses or FM specific circular standards was also cited as a limiting factor.

Asset Ownership & Control

The question of asset ownership emerged as another important challenge. Participants discussed the reluctance of some clients to relinquish ownership or control of assets, which can limit the adoption of service-based and circular business models.

This issue was closely linked to uncertainty around responsibility, risk allocation and long-term accountability. Without clear frameworks that define ownership, liability and performance responsibility, circular models such as reuse, leasing or XaaS can face resistance.

Supply Chain & Resource Constraints

Participants pointed to scarcity of local products, materials, and manufacturing capacity as a practical constraint. Reliance on imported materials and technologies can increase costs, lengthen lead times and reduce flexibility in implementing circular solutions.

Material scarcity and fragmented supply chains were also seen as barriers to scaling circular practices, particularly when local ecosystems to support reuse, refurbishment or remanufacturing are underdeveloped.

Limited Awareness, Skills, and & Capability

A recurring theme was the lack of awareness, knowledge, and training related to circular economy principles across both FM teams and client organizations. Participants suggested that circular concepts are not always well understood, leading to conservative decision- making and resistance to change.

This skills gap was observed at multiple levels:

  • Client representatives with limited exposure to circular value propositions
  • FM teams lacking formal training in circular practices
  • Limited access to expertise needed to design, implement and operate circular FM solutions

Change resistance was often framed because of this capability gap rather than opposition to circularity itself.

FM Involvement Too Late in the Asset Life Cycle

Participants also noted that facility management is often engaged too late in the design and development process, reducing its ability to influence material selection, system configuration, and long-term maintainability.

When FM input is excluded from early design stages, linear practices can become locked in, making circular interventions more complex, costly or impractical once assets are operational.

Regulatory Gaps &and Inconsistent Incentives

Although participants acknowledged growing sustainability ambitions across the region, they also identified gaps in circular- specific regulation, particularly as it relates to FM operations. Existing green building or sustainable construction frameworks were viewed as insufficient on their own, especially where FM perspectives are not integrated.

A lack of consistent incentives was also highlighted, with participants noting that without financial, regulatory, or reputational drivers, circular practices may remain optional rather than normalized.

Pressure of Scale, Speed, and & Delivery

Finally, participants emphasized that the speed and scale of development in the Middle East can itself act as a constraint. Tight project timelines, SLA pressures, and performance KPIs focused on delivery rather than life cycle outcomes can crowd out experimentation and innovation.

In this environment, circular practices may be perceived as adding complexity unless they are clearly aligned with operational priorities and performance expectations.

International Facility Management Association (IFMA) supports over 25,000 members in 140 countries. Since 1980, IFMA has worked to advance the FM profession through education, events, credentialing, research, networking and knowledge-sharing.