Construction remains the core reason for Middle East region’s prosperity. The region is undergoing a massive infrastructure overhaul to create fresh revenue streams, and attempting to reduce the dependence on crude oil earnings. Therefore, the construction sector remains the growth engine of economic development for the entire region.
The foreign investments in services industry such as BFSI, tourism, entertainment, etc. has been surging. The commercial space is currently expanding vigorously. Moreover, several government initiatives toward social welfare such as affordable housing, healthcare centers, etc. are emerging as key opportunity areas for the facility management service providers.
According to the MarkNtel Advisors’ research report titled “Middle East Facility Management Market Analysis, 2020”, the market size is projected to grow at a CAGR of around 7% during 2020-25.
The facility management market is expected to grow on an account of expansion of hotel chains and infrastructure development for global events such as Dubai Expo 2020 and Football World Cup 2022 in Qatar. Also, UAE has devised a strategic plan to host 25 million tourists per year by 2025, increasing from 18 million in 2018. Saudi Arabia is also bracing itself to welcome an increased number of religious tourists. Thus, religious tourism infrastructure development is on a steady rise. Therefore, these developments are opening new avenues for FM companies in the region.
Hard FM Services is Expected to Dominate the Middle East Facility Management Market
In 2019, Hard FM services, driven by HVAC maintenance, had the highest market share in Middle East Facility Management market. However, this share is expected to decline during the forecast period on an account of declining per sq. ft. cost of maintenance. At the same time, the demand for soft services is rising at a faster pace. The year-on-year growth rate of soft services has been outpacing the hard services. Moreover, the cost of soft services is considerably higher in comparison to hard services.
Financial Savings is the Primary Objective for Availing FM services
Financial savings in terms of cost optimization, and achieving operational efficiency was the prime objective of customers outsourcing facility management operations in UAE, Saudi Arabia, Oman, Kuwait, and Bahrain. Price, brand name, and service quality are the key factors considered while selecting a vendor for facility management in the Middle East.
Key Questions Answered in the Market Research Report
Market Outlook, Segmentation and Statistics
Frequently Asked Questions
Q. What would be the growth rate or CAGR of Middle East facility management market during 2020-25?
A. The market size of Middle East facility management market during 2020-25 is forecast to be around 7%.
Q. Which type of facility management services would grab the highest market share during 2020-25?
A. It is forecast that hard facility management services will dominate the market with majority market share, with market size registering considerably higher CAGR due to the hot and humid weather conditions in the country.
Q. Who are the key competitors or players operating in Middle East facility management market?
A. Emrill Services LLC, Imdaad L.L.C, Farnek Services LLC, EFS Facilities Management Services, COFELY BESIX Facility Management, Khidmah LLC, Al Shirawi Facilities Management LLC, Interserve, Etisalat Facilities Management L.L.C., Mosnada Facility Management Services are few of the leading players in the Middle East facility management market.
Q. Does the report scope cover facility management type and country wise market statistics also?
A. Yes, the scope of the report encompass detailed facility management type and country wise statistics such as market size, market segmentation based on various subcategories.
Q. Which operational model would emerge as an opportunity area for players in facility management?
A.The In-house services captured the highest market share in the Middle East facility management market due to satisfaction with in-house services, low budget, perceived high risk.