UAE Facility Management Market Research Report: Forecast (2021-2026)

Market Definition

Facility management comprises tools & services that support the functionality, safety, and sustainability of buildings to provide the surrounding people with better facilities and living & work environments. It involves the integration of places, people, processes, and technologies with each other, thereby enabling the effective management of a workplace. The facility management offers the following necessary services:

• Equipment Maintenance
• Space Planning
• Portfolio Forecasting
• Maintenance & Operations

Market Insights

The UAE Facility Management Market is anticipated to grow at a CAGR of around 9% during the forecast period, i.e., 2021-26. UAE, the financial hub of the Middle East, emerged as one of the most potential markets for Facility Management (FM) services in 2020. Various initiatives & efforts by the UAE government toward diversifying its economy from the traditional oil export service sector to non-oil sectors are propelling the growth of the facility management market in the country.

The rapidly expanding construction sector is also projected to offer lucrative opportunities to the facility management service providers in the UAE. In addition, the mounting demand for facility management services in commercial & residential buildings, coupled with rising industrial projects across the UAE, also drove the market. Moreover, the increasing inflow of tourists in the UAE is accelerating numerous construction activities associated with hotels, malls, etc., which, as a result, is augmenting the need for facility management services.

The Middle East Facility Management Association (MEFMA) has announced MEFMA CONFEX 2022, i.e., scheduled to be held from March 14 to 16 under the theme "Technology and Data-driven Facility Management – The core of business excellence and sustainability."

The prime aim of this MEFMA CONFEX 2022 is to establish a unique platform for experience & knowledge sharing and connect with top FM professionals, including developers, service providers, and government representatives.

Recent Developments by the Leading Players in the UAE Facility Management Market:

• In January 2021, market leader, Farnek Services LLC, was offered four hospitality contracts in Dubai. These projects include facility management services for hotels like Fairmont Dubai on Sheikh Zayed Lane, Revier Hotel in Business Bay, S Hotel in Al Barsha, and Sonder– JBR Suites on The Walk (Jumeirah Beach Residence.)
• In June 2020, Imdaad LLC declared the launch of the Infinite Protection Package, its new disinfection service, which will be operated by its subsidiary, Isnaad, with a plethora of soft facility management services to create a hygienic, safe, and healthy UAE.
• In 2019, another prominent leader in integrated facility management services, EFS Facility Services Group, acquired a contract of around USD40 million. The leader has also won several projects, including large government entities in the UAE.

Impact of Covid-19 on the UAE Facility Management Market

• The Covid-19 pandemic in 2020 caused turbulence in the economies of GCC countries, including the UAE.
• However, the UAE Facility Management Market witnessed both disruptions & opportunities amidst the pandemic.
• While the market witnessed payment delays & capital issues, it also observed a significant hike, owing to the surging adoption of sanitization & cleaning services as the paramount requirement to prevent the risk of virus spread.
• The payment delays and costs for safety & compliance caused significant financial losses to facility management service providers in the UAE.
• Moreover, social distancing & other guidelines imposed by the UAE government for the proper accommodation & transportation of manpower led to additional expenses for the facility management providers, including the procurement of PPE kits, especially for the frontline workers.
• However, the demand for HVAC maintenance services increased, with air ducts requiring frequent cleaning & disinfection.
• Moreover, the surging demand for security services like health checks & thermal scanning of people at entry points of various government, commercial, & hospitality establishments also fueled the market growth amidst the crisis.