Facility management is a service that provides different types of management & maintenance support to an organization/facility. This industry has dramatically expanded in Saudi Arabia in recent years, principally due to rapid industrialization across the country. The key operations of facility management systems are:
The Saudi Arabia Facility Management Market is projected to grow at a CAGR of around 15% during the forecast period, i.e., 2021-26. The market is driven principally by the swiftly increasing number of projects for infrastructure development, coupled with the growing construction activities in Saudi Arabia, thereby propelling the demand for facility management services to look after the operations like maintenance & management of the building/facility.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||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, Al Hajry Overseas Co. Ltd., etc.|
|Unit Denominations||USD Million/Billion|
Moreover, Saudi Vision 2030 is increasingly focusing on infrastructural developments with several construction projects in the country, thereby playing a crucial role in driving the facility management market. Additionally, the integration of the Internet of Things (IoT) & industrial automation in facility management, coupled with employee engagement programs, are other crucial aspects driving the market.
Besides, due to numerous benefits of facility management like the productivity of facilities & personnel, risk management, communications management, implementation of new business strategies, risk management, cost-efficiency, etc., shall further boost their demand and fuel the overall market growth during the forecast period.
Demand for Facility Management to Upswing Post the Covid-19 Pandemic
The Covid-19 pandemic had a decelerating effect on most industries across Saudi Arabia, including the facility management market. Initially, to curb the virus spread, the government responded to the pandemic by imposing stringent movement restrictions & lockdown. As a result, most industries had to shut and adopt the work-from-home culture, owing to which all operations of the facility management were severely affected.
However, the market also observed new developments across Saudi Arabia amidst the crisis, with massive government investments in improving facility management and facilitating various other services, especially around containment zones.
Besides, with the swiftly reducing number of cases, the Saudi government uplifted restrictions and recommenced operations in facilities. It, in turn, generated a mounting demand for facility management across the country due to the rising awareness about cleanliness, sanitization, & safety to avoid the virus contract. Hence, the market observed a hike in the later phase of 2020.
Nonetheless, in the coming years, the role of facility management is anticipated to become prominent with a swift shift from operational to strategic level services & management, thereby integrating a new work environment and fulfilling employee needs from work-from-home to corporate culture.