UAE Facility Management

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

By Type (Hard, Soft, Risk, Administrative), By Operating Model (In-House, Outsourced), By Service Delivery (Single Service, Bundled, Integrated), By Size (Small Enterprise, Mid-Size Enterprise, Large Read more

  • Buildings, Construction, Metals & Mining
  • Dec 2021
  • 187
  • BM44021

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.

Report Coverage Details
Study Period Historical Data: 2016-19
Base Year: 2020
Forecast Period: 2021-26
CAGR 9%
Key Companies Profiled 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 LLC, Enova Facility Management Services LLC
Unit Denominations USD Million/Billion

 

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.

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

Market Segmentation

By Type:

  • Hard
  • Soft
  • Risk
  • Administrative

Here, the Hard Facility Management services acquired a significant share of the UAE Facility Management Market in 2020, mainly due to the rapidly expanding real estate sector, coupled with the surging number of retail malls, industrial hubs, & corporate centers being constructed across the country.

The Hard FM services include HVAC maintenance, fire safety alarms, plumbing, electrical maintenance, etc. The increasing demand for HVAC systems due to the extreme climate of the UAE is a crucial aspect projected to boost the demand for Hard facility management services in the coming years.

Moreover, the rising trend of smart homes in the country is significantly infusing the need for managing air conditioning systems, lighting controls, etc., present in buildings, which, in turn, is fueling the growth of the Hard facility management market.

On the other hand, the demand for Soft Facility Management services is mainly due to the mounting need for after-construction cleaning services. In addition, the increasing construction of new buildings in the country, especially in Dubai, is creating the demand for floor care services, including marble polishing & crystallization, coupled with other specialized maintenance & cleaning services.

As a result, it will provide lucrative growth opportunities for the Soft Facility Management market in the coming years. Besides, the Covid-19 pandemic in 2020 has also augmented the demand for cleaning services like the sanitization of buildings. The same trend is likely to be followed in the coming years due to the mounting awareness among people about hygiene, which would also significantly boost the Soft FM market.

Nevertheless, administrative services are also witnessing an increasing demand owing to the massive greenfield investments flowing in the country. The ongoing efforts by UAE’s government to diversify its economy, from conventional crude-oil export to service-sectors, is expected to propel the construction projects from the commercial sector, thereby augmenting the demand for administrative service in the country.

By Operating Model

  • Outsourced
  • In-House

Of both, the demand for Outsourced Facility management services is increasing at a rapid pace across the UAE, owing prominently to the increasing number of market players entering the industry providing specialized services while enabling reduced operational costs. In 2019, UAE ranked number one among all GCC countries in terms of outsourcing facility management services. Moreover, organizations that focus on core business operations are increasingly shifting their preferences toward a better quality of facility management that includes comprehensive services, which, as a result, is fueling the overall market growth.

On the other hand, the In-House facility management services held the largest market share in the previous few years owing to the prominent end-users that require the management of services like cleaning, catering, & security. However, the depletion in service quality, improper management of a large set of services, and high initial costs of deploying an in-house facility management unit has resulted in a drop in the market share of these services.

Key Trends in the UAE Facility Management Market:

The retail sector of the UAE underwent massive transformations in recent years, with extensive expansion across Dubai, hailing as a prominent city of shopping malls. These developments display a long-term prevalence of shopping malls with the establishment of international brands and instigating a positive effect on the demand for Facility Management services.

In March 2019, Tafawuq Facility Management launched its training center in the UAE, with electrical, mechanical, & plumbing being the prominent training areas based on the international standard SFG20. On the other hand, the training on safe work practices is in line with British Safety Council Standards and cleaning techniques based on the British Institute of Cleaning Science.

Regional Landscape:

  • Dubai
  • Sharjah & North Emirates
  • Abu Dhabi & Ain

Within UAE, Dubai holds the largest share of the Facility Management market. It is due to the rising initiatives by the government to boost infrastructural developments, coupled with several ongoing construction projects in Dubai. Moreover, the flourishing tourism industry and World Expo of Dubai are other crucial aspects infusing the need for facility management services.

Further, the Dubai Metro Red Line extension, Royal Atlantis Resort & Residences (Palm Jumeirah), and the Container Terminal 4 (Jebel Ali Port) expansion are a few big projects currently starting in Dubai. These projects are expected to spur the demand for facility management services in Dubai and, in turn, boost the UAE Facility Management Market in the coming years.

Market Dynamics:

Key Drivers

Massive Investments in UAE's Tourism Sector for Enhancing Diversification to Drive Growth

The increasing demand for modern infrastructure due to the surging inflow of tourists in the UAE is projected to boost the facility management market during 2021-26. The regulatory bodies in the country are heavily investing in the tourism sector to improve economic diversification, and the government has started issuing tourist visas for the first time in the UAE's history. Such initiatives are likely to propel the construction of facilities like hotels, malls, cultural centers, etc., in the country, which, in turn, would boost the facility management market in the years to come.

Rapidly Expanding Infrastructure Sector of the UAE to Drive the Facility Management Market

The UAE government is actively investing in the country's infrastructure sector with the increasing construction of railways, ports, airports, etc. As a result, there have been numerous collaborations between the government & several facility management service providers to keep the infrastructure clean & green, thereby infusing the demand for cleaning services. Moreover, governments are signing several contracts with various international players to complete & link their infrastructure both internally and across the borders. Across the UAE, Dubai is observing a rapid proliferation of several consultation & Information Technology (IT) firms. Due to the country's focus on diversifying the economy away from oil, Dubai is taking several initiates to construct office complexes, which, in turn, is propelling the demand for facility management services and driving the growth of the overall market.

Possible Challenge: Lack of Funds & Resources with Small & Medium-Sized Companies to Avail Facility Management Services Might Hinder the Market Growth

Several small & medium-sized enterprises in the UAE do not have heavy investment budgets or resources to avail facility management services. As a result, it leads to various challenges like fire breakouts due to negligent electrical system maintenance, reduced employee morale & productivity, sanitization & hygiene issues, etc. Hence, these financial restraints of small & medium-sized companies might hamper the overall market growth in the coming years.

Competitive Landscape

According to MarkNtel Advisors, the major leading players in the UAE Facility Management market are 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 LLC., and Enova Facility Management Services LLC.

Key Questions Answered in the Market Research Report:

  1. What are the overall market statistics or estimates (Market Overview, Market Size- by Value, Forecast Numbers, Market Segmentation, and Market Shares) of the Global Next-Generation Ultrasound System Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Next-Generation Ultrasound System Market? 
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Next-Generation Ultrasound System Market based on a competitive benchmarking matrix?
  5. What are the key results derived from the market surveys conducted during the Global Next-Generation Ultrasound System Market study?

Market Outlook, Segmentation and Statistics 

  • Impact of COVID-19 on UAE Facility Management Market
  • Industry Potential & Outlook
    • By Revenues
  • Industry Segmentation & Outlook
    • By Type
      • Hard
      • Soft
      • Risk
      • Administrative
  • By Operating Model
    • In-House
    • Outsourced
  • By Service Delivery
    • Integrated
    • Bundled
    • Single Services
  • By End Users
    • Commercial
    • Residential
    • Government
    • Retail
    • Education
    • Healthcare
    • Hospitality
  • By Enterprise Size
    • Large
    • Mid-Size
    • Small
  • By Region
    • Dubai
    • Abu Dhabi & Al Ain
    • Sharjah & Northern Emirates
  • By Competitors
    • Competition Characteristics
    • Market Share & Analysis
    • Competitive Matrix
  • UAE Facility Management Market Hotspots & Opportunities
  • UAE Facility Management Market Regulations & Policy
  • Key Strategic Imperatives for Success and Growth

Frequently Asked Questions

A. The UAE Facility Management Market is expected to grow at a CAGR of around 9% during 2021-26.

A. The Hard Facility Management service dominated the UAE Facility Management Market and is projected to create lucrative growth opportunities for the leading players in the market during 2021-26.

A. The flourishing tourism sector and the increasing number of construction projects across the UAE are the key factors projected to drive the Facility Management Market during 2021-26.

A. The resumption of construction activities after the upliftment of lockdown has surged the demand for Facility Management services. Additionally, with less economic dependency on crude oil, the facility management market in the UAE is expected to witness significant growth opportunities during 2021-26.

1.     Introduction

1.1.   Product Definition

1.2.   Research Process

1.3.   Assumptions

2.     Executive Summary

3.     Expert Verbatim- What our Experts Say?

4.     Macroeconomic Outlook

5.     UAE Facility Management Market Outlook (2016-2026)

5.1.   Industry Potential & Outlook

5.1.1. By Revenues

5.2.   Industry Segmentation & Outlook

5.2.1. By Type

5.2.1.1.  Hard

5.2.1.2.  Soft

5.2.1.3.  Risk

5.2.1.4.  Administrative

5.2.2. By Operating Model

5.2.2.1.  In-House

5.2.2.2.  Outsourced

5.2.3. By Service Delivery

5.2.3.1.  Integrated

5.2.3.2.  Bundled

5.2.3.3.  Single Services

5.2.4. By End Users

5.2.4.1.  Commercial

5.2.4.2.  Residential

5.2.4.3.  Government

5.2.4.4.  Retail

5.2.4.5.  Education

5.2.4.6.  Healthcare

5.2.4.7.  Hospitality

5.2.4.8.  Others

5.2.5. By Enterprise Size

5.2.5.1.  Large

5.2.5.2.  Mid-Size

5.2.5.3.  Small

5.2.6. By Region

5.2.6.1.  Dubai

5.2.6.2.  Abu Dhabi & Al Ain

5.2.6.3.  Sharjah & Northern Emirates

5.2.7. By Company

5.2.7.1.  Revenue Shares

5.2.7.2.  Strategic Factorial Indexing

5.2.7.3.  Competitor Placement in MarkNtel Quadrant

6.     UAE Hard Facility Management Market Outlook (2016-2026)

6.1.   Industry Potential & Outlook

6.1.1. By Revenues

6.2.   Industry Segmentation & Outlook

6.2.1. By Type

6.2.1.1.  District Cooling

6.2.1.2.  Building Management

6.2.1.3.  Plumbing Apparatus, Pumps, Sanitary units, etc.

6.2.1.4.  Electrical Installation

6.2.1.5.  Energy Management

6.2.1.6.  Air Conditioning System

6.2.1.7.  Roads & Street Lighting System

6.2.1.8.  Others

6.2.2. By Operating Model

6.2.3. By Service Delivery

6.2.4. By End User

6.2.5. By Enterprise Size

6.2.6. By Region

7.     UAE Soft Facility Management Market Outlook (2016-2026)

7.1.   Industry Potential & Outlook

7.1.1. By Revenues

7.2.   Industry Segmentation & Outlook

7.2.1. By Type

7.2.1.1.  Cleaning Services

7.2.1.2.  Catering

7.2.1.3.  Pest Control

7.2.1.4.  Landscaping

7.2.1.5.  Others

7.2.2. By Operating Model

7.2.3. By Service Delivery

7.2.4. By End User

7.2.5. By Enterprise Size

7.2.6. By Region

8.     UAE Risk Facility Management Market Outlook (2016-2026)

8.1.   Industry Potential & Outlook

8.1.1. By Revenues

8.2.   Industry Segmentation & Outlook

8.2.1. By Type

8.2.1.1.  Insurance Management

8.2.1.2.  Security

8.2.1.3.  Disaster Management

8.2.1.4.  Reserve/Sinking Fund

8.2.1.5.  Others

8.2.2. By Operating Model

8.2.3. By Service Delivery

8.2.4. By End User

8.2.5. By Enterprise Size

8.2.6. By Region

9.     UAE Administrative Facility Management Market Outlook (2016-2026)

9.1.   Industry Potential & Outlook

9.1.1. By Revenues

9.2.   Industry Segmentation & Outlook

9.2.1. By Type

9.2.1.1.  Mail Management

9.2.1.2.  Front Office Management

9.2.1.3.  Space Planning & Management

9.2.1.4.  Inventory Management

9.2.1.5.  Others

9.2.2. By Operating Model

9.2.3. By Service Delivery

9.2.4. By End User

9.2.5. By Enterprise Size

9.2.6. By Region

10.  UAE Facility Management Market Regulations

11.  UAE Facility Management Market Trends & Developments

12.  UAE Facility Management Market Dynamics

12.1.Impact Analysis

12.2.Drivers

12.3.Challenges

13.  UAE Facility Management Services Market, Customer Buying Behaviour, 2020

13.1.Factors Influencing Customer’s Decision

13.2.Priority Matrix of Customer’s Need

13.3.Customer and Service Provider Proximity Analysis

14.  UAE Facility Management Market Winning Strategies, 2020

14.1.Investment Scenario

14.2.Hotspots

15.  UAE Facility Management Market Attractiveness Index, (2021-2026)

15.1.By Type

15.2.By Operating Model

15.3.By End Users

15.4.By Service Delivery

15.5.By Enterprise Size

15.6.By Region

16.  UAE Facility Management Market Porter’s Five Forces Analysis

17.  UAE Facility Management Market Pricing Analysis, 2020

18.  Competitive Benchmarking

18.1.Competition Matrix

18.1.1. Product Portfolio

18.1.2. Target Markets

18.1.3. Target End Users

18.1.4. Research & Development

18.1.5. Strategic Alliances

18.1.6. Strategic Initiatives

18.2.Company Profiles (Business Description, Product Offering, Strategic Alliances or Partnerships, etc.)

18.2.1. EMRILL Services LLC

18.2.2. Imdaad L.L.C.

18.2.3. Farnek Services LLC

18.2.4. EFS Facilities Management Services

18.2.5. COFELY BESIX Facility Management

18.2.6. Khidmah LLC

18.2.7. Al Shirawi Facilities Management LLC

18.2.8. Interserve

18.2.9. Etisalat Facilities Management L.L.C.

18.2.10.  Enova Facility Management Services LLC

19.   Disclaimer

UAE Facility Management Market Segmentation