To reduce their reliance on crude oil, the governments in the Middle East region are rapidly diversifying their economies by investing in mega infrastructure for business, entertainment, adventure, and educational purposes. Several economies in the region have defined their vision plans to restructure their economies by 2030. Saudi Arabia has already launched its Vision Plan 2030 to re-model their sources of income. While, Dubai, Abu Dhabi, Kuwait, Bahrain has also defined their plans and industrial strategies extending up to 2030. These strategic plans are expected to act as a major growth driver for the facility management market during 2020-30.
According to the MarkNtel Advisors’ research report, “Middle East Facility Management Market Analysis, 2020”, the regional facility management market is set to surge at CAGR of around 7% during 2021-25. The surge in tourism activities, migration from Europe, Asia, and Africa, growing public and private investment in infrastructure and Greenfield industrial units, etc. are the key reasons promulgating the demand for facility management in the Middle East.
During 2015-2019, UAE and Saudi Arabia garnered the majority of the foreign direct investments in the region. Therefore, both the countries are set to remain the hotspots for FM service providers during 2020-25.
Growing Traction towards Integrated Facility Management (IFM)
In 2019, the majority of the end-users preferred bundled services over single and integrated. However, the trend has been declining with growth proximity towards integrated facility management. It is expected that the market share of integrated facility management services would exceed 40% in the Middle East by 2025. The key reason for an uptick in the growing digitalization of operation by IFM providers, highly skilled manpower, access to the latest technologies, etc.
Corporates, Hotels and Retail Malls Cornered the Majority Market Share
The corporate space in UAE is expanding year on year. The key target areas for the investors were Dubai, Abu Dhabi, Jeddah, and Doha. These end-users have a greater inclination towards bundled and integrated FM services.
The most sought after FM services by these end-users in 2019 were HVAC maintenance, Cleaning, Catering, Security, and Plumbing. The customers in these end users are willing to pay more for better service quality, as revealed by MarkNtel in its research report “Middle East Facility Management Market Analysis, 2020”.
Rising Competition Shrinking the Margins
The competition in the Middle Eastern Facility management market has been intensifying with the influx of a large number of foreign players and the resurgence of domestic companies. According to MarkNtel Advisors, the margins of competitors in the facility management market have been registering a downward trend. However, the companies operating in the niche services with robust technological integration are quite successful in expanding their business operations without compromising on margins. So, innovation would act as a key differentiator during 2020-25. Also, the margins of IFM service providers are considerably high in comparison to single services. .
“Middle East Facility Management Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the market potential, regional opportunities, key factors impacting sales and purchase decisions, hotspots, and opportunities available for FM service providers across the region. Moreover, the report also encompasses the key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the competition assessment, formulation of Go to Market Strategies and identifying the blue ocean for their offerings.
1. By Type of Service (Hard, Soft, Risk, Administrative)
2. By Operating Model (Outsourced, In-house)
3. By Service Delivery (Bundled, Integrated, Single Service)
4. By Enterprise Size (Large, Medium, Small)
5. By Countries (Residential, Government, Retail Malls, Healthcare, Educational Institutes, Corporates, Others)
6. By Country (Saudi Arabia, UAE, Qatar, Oman, Kuwait, Bahrain, Lebanon, Egypt, Others)
Key questions answered in the study:
1. What are the current and future trends of the Middle East Facility Management Market?
2. How the industry has been evolving in terms of end-user demand and application areas?
3. What are the future plans and customer expectations of end-users across the region?
4. How the competition has been shaping across the countries followed by their comparative factorial indexing?
5. What are the key growth drivers and challenges for the Middle East Facility Management Market?
6. What are the customer orientation, purchase behavior, and expectations from the FM companies across various regions?