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:
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.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|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:
Impact of Covid-19 on the UAE Facility Management Market
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
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.
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.
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.
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:
Market Outlook, Segmentation and Statistics
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.
1.1. Product Definition
1.2. Research Process
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
5.2.2. By Operating Model
5.2.3. By Service Delivery
220.127.116.11. Single Services
5.2.4. By End Users
5.2.5. By Enterprise Size
5.2.6. By Region
18.104.22.168. Abu Dhabi & Al Ain
22.214.171.124. Sharjah & Northern Emirates
5.2.7. By Company
126.96.36.199. Revenue Shares
188.8.131.52. Strategic Factorial Indexing
184.108.40.206. 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
220.127.116.11. District Cooling
18.104.22.168. Building Management
22.214.171.124. Plumbing Apparatus, Pumps, Sanitary units, etc.
126.96.36.199. Electrical Installation
188.8.131.52. Energy Management
184.108.40.206. Air Conditioning System
220.127.116.11. Roads & Street Lighting System
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
18.104.22.168. Cleaning Services
22.214.171.124. Pest Control
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
126.96.36.199. Insurance Management
188.8.131.52. Disaster Management
184.108.40.206. Reserve/Sinking Fund
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
220.127.116.11. Mail Management
18.104.22.168. Front Office Management
22.214.171.124. Space Planning & Management
126.96.36.199. Inventory Management
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
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
15. UAE Facility Management Market Attractiveness Index, (2021-2026)
15.2.By Operating Model
15.3.By End Users
15.4.By Service Delivery
15.5.By Enterprise Size
16. UAE Facility Management Market Porter’s Five Forces Analysis
17. UAE Facility Management Market Pricing Analysis, 2020
18. Competitive Benchmarking
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
18.2.9. Etisalat Facilities Management L.L.C.
18.2.10. Enova Facility Management Services LLC