The UAE Integrated Facility Management Market is projected to grow at a CAGR of 13.57% during the forecast period, i.e., 2022-27, says MarkNtel Advisors in their recent research report. The major factor contributing to the growth of Integrated Facility Management Services in the UAE has been the country’s plan of diversifying the economy from a solely oil-based economy to a service-based economy. Over the last decade, the government's initiatives have acted as a catalyst for the development of the UAE Integrated Facility Management market. For instance, in 2019, the UAE government announced initiatives such as One Free Passport Zone to boost the inflow of foreign companies and establish their bases in the country.
Moreover, an increase in infrastructure development projects, including the construction of offices, hotels, and residential units in the kingdom, further created the demand for the facility management services such as hard, soft, risk, and administrative. Although in 2020, owing to the outbreak of the COVID-19 pandemic, the downfall in the market can be validated by the imposition of restrictions & lockdowns on public gatherings, commercial spaces, etc. Additionally, according to the WTTC, the tourism sector portrayed a revenue contribution drop to nearly 5.4% in 2020, compared to 11.6% in the past year.
Furthermore, the decrease in tourists from abroad in the UAE led to the decrease in business activities of hotels, shopping malls, restaurants & cafes, and entertainment spaces, which finally negatively impacted the growth in the demand for facility management services. However, with the resumption of the economic activities & proposed investments in the construction sector of around USD12.3 billion to initiate the development of Riyadh city, including 61 shopping centers & around 84 mosques. The demand for integrated facility management services is expected to regain its pace, further states the research report, the "UAE Integrated Facility Management Market Analysis, 2022-2027."
Hard Facility Management Services to Gain Momentum in the Forthcoming Years
Based on the service type, the market is bifurcated into Hard, Soft, Risk, and Administrative. Among them, the Hard Facility Management services grabbed a sizeable market share during the historical period due to the growing construction of retail malls, industrial hubs, expansion of corporate offices, luxurious hotels, etc., and the same is expected in the forthcoming years. The rapid expansion in the healthcare sector, educational institutions, and government offices have propelled the demand for Hard Facility Management Services in UAE. Moreover, extreme weather conditions in the country significantly contributed to the demand for district cooling services in the country. Significantly, the establishment of new hospitals & reviving of commercial offices in the country post-COVID-19 would boost the demand for electrical installation, energy management, building management, etc. Therefore, positively impacting the growth of hard services facility management in the forthcoming years.
Large Enterprises to Acquire Significant Share in the Market during 2022-2027
Based on the enterprise, the market is divided into Large, Mid-size, and Small. Of them, the Large enterprise accumulated a major share in the UAE Integrated Facility Management market historically. Large enterprises have varied & complex tasks to perform that can range from management of business conference meetings to providing food service to their employees on time. Therefore, it comprises a chain of management tasks to be conducted daily. Due to this, large enterprises seek facility management services. Moreover, with the rising construction of hospitals, hotels, malls, supply chain hubs, etc., the UAE is expected to increase the demand for facility management services in the coming years.
For instance, in 2022, Select Group and Emirates Strategic Investments Company (ESIC) entered an agreement with Six Senses to construct a hotel in the UAE. The project would spread over 1,11,484 square meters. This investment will enhance the demand for facility management in the UAE. Hence, it is expected to accelerate the growth of the UAE integrated facility management services in the forthcoming year.
According to MarkNtel Advisors, the leading players in the UAE Integrated Facility Management Market are EMRILL Services LLC, Imdaad L.L.C., Farnek Services LLC, EFS Facilities Management Services, COFELY BESIX Facility Management (IFM), Khidmah LLC, Al Shirawi Facilities Management LLC, Interserve, Etisalat Facilities Management L.L.C., Enova Facility Management Services LLC.
Key Questions Answered in the Study