The Saudi Arabia Facility Management Market is anticipated to grow at a CAGR of 4.54% in the forecast period of 2023-28. The growth of the market attributes primarily to the mounting construction activities and surging focus on infrastructure developments to manage operations like lease management, business continuity, space optimization & management, energy management, etc.
In line with Saudi Vision 2030, the government is escalating the digital infrastructure & encouraging the expansion of businesses & corporates, thereby augmenting the demand for facility management services. Additionally, with the increasing inflow of tourists & massive government investments in establishing new hotels in the country, the facility management market is projected to soar for services like space optimization, lighting, installation & maintenance of air conditioning, plumbing, and electrical systems, among others.
Moreover, organizations getting more inclined toward energy efficiency & building sustainability is another crucial aspect leading to the surging adoption of facility management, mainly to reduce energy costs & optimize consumption across Saudi Arabia, further states the research report, “Saudi Arabia Facility Management Market Analysis, 2023.”
Demand for Hard Facility Management Services to Witness the Highest Growth during 2023-28
The fastest-growing demand for Hard Facility Management Services is principally due to the substantial investments by the Saudi government & private sectors in developing real estate buildings & public infrastructure. This type of service includes the management of air conditioning, lighting, heating, temperature, plumbing, wiring, fire safety, etc., which are the crucial aspects of a facility. These services are offered by contracting with the building management that includes everything like workforce & other related services. In addition, the increasing urbanization in Saudi Arabia is creating a significant demand for infrastructure projects and, consequently, for Hard Facility Management services.
Bundled & Integrated Services Held a Considerable Market Share
The growing awareness about the benefits of facility management services is encouraging companies to opt for multiple services (hard, soft, or both) based on their requirements. It is why the integrated & bundled service deliveries together attained a considerable market share in the previous few years. Moreover, considering the mounting demand for integrated facility management services in Saudi Arabia, several companies have established joint ventures. For instance:
Abdul Latif Jameel Land and Al Muhaidib Group, in 2019, introduced their joint venture, i.e., Muheel, an Integrated Facilities Management company in Saudi Arabia.
Key Market Competitors
According to MarkNtel Advisors, the leading players in the Saudi Arabia Facility Management Market are ENGIE Solutions, Khidmah LLC, Interserve Plc, Enova Facility Management Services LLC, Rezayat Group, Musanadah Facilities Management Co. Ltd., Nesma Trading Co. Ltd., Al Borj International, Petrojana, and Al Hajry Overseas Co. Ltd.
Key questions answered in the study: