Market Definition
Facility management may also involve managing security, safety, and environmental factors, as well as overseeing the procurement of supplies and services needed to keep the facilities running smoothly. Ultimately, the goal of facility management is to ensure that the physical assets of an organization are well-maintained and properly utilized in order to support the overall mission and objectives of the organization.
Market Insights
The UAE Facility Management Market is projected to grow at a CAGR of around 9.0% during the forecast period, i.e., 2023-28. UAE, the financial hub of the Middle East, emerged as one of the most potential markets for Facility Management (FM) services in the historical period. 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 market in the country.
The rapidly expanding construction sector is also projected to offer lucrative opportunities to the service providers in the UAE. In addition, the mounting demand for such 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 administration services.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 9% |
| Region Covered | Dubai, Abu Dhabi & Al Ain, Sharjah & Northern Emirates |
| 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 L.L.C., Enova Facility Management Services LLC |
| Unit Denominations | USD Million/Billion |
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 the industry.
Furthermore, 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. Besides, the Covid-19 pandemic in 2020 has also augmented the demand for cleaning services such as building sanitization. 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.
Market Dynamics
Key Driver: Rapidly Expanding Infrastructure Sector of the UAE
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 need 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 market demand and driving the growth of the overall market.
Possible Restraint: Lack of Funds & Resources with Small & Medium-Sized Companies to Avail Facility Management Services
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.
Growth Opportunity: Massive Investments in UAE's Tourism Sector for Economic Diversification
The increasing demand for modern infrastructure due to the surging inflow of tourists in the UAE is projected to boost the market growth. 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 market expansion in the years to come.
Market Segmentation
Based on Type:
Here, the Hard Type services acquired a significant share of the UAE Facility Management Market in 2022, mainly due to the rapidly expanding real estate sector, coupled with the surging number of retail malls, industrial hubs, and corporate centers being constructed across the country. The Hard FM services include HVAC maintenance, fire safety alarms, plumbing, electrical maintenance, etc. The increasing adoption of HVAC systems due to the extreme climate of the UAE is a crucial aspect projected to boost the demand for Hard services type in the coming years.
On the other hand, the Soft services type are gaining grounds, mainly due to the mounting need for post-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 and crystallization, coupled with other specialized maintenance and cleaning services. As a result, the market is expected to provide lucrative growth opportunities in the coming years.
Nevertheless, administrative services are also witnessing increasing adoption owing to the massive greenfield investments flowing into 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 need for administrative services in the country.
Based on Operating Model,
Of both, the demand for Outsourced Operating Model 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 the historical period, UAE ranked number one among all GCC countries in terms of outsourcing facility administration services. Moreover, organizations that focus on core business operations are increasingly shifting their preferences toward a better quality of management of the facility that includes comprehensive services, which, as a result, is fueling the overall market growth.
On the other hand, the In-House Operating Model 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 operating model unit has resulted in a drop in the market share of these services.
Regional Projection
Geographically, the UAE Facility Management Market expands across:
Within UAE, Dubai holds the largest share of the 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 administration 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 in Dubai. These projects are expected to spur the demand for the industry in Dubai and, in turn, boost the UAE market expansion in the coming years.
Recent Developments in the UAE Facility Management Market
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Frequently Asked Questions
A. The UAE Facility Management Market is projected to grow at a CAGR of around 9.0% during 2023-28.
A. Rapidly expanding infrastructure sector of the UAE is likely to drive the market further during the projected time frame.
A. The prominent players anticipated to stiffen the competition 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.
A. Outsourced OM is anticipated to emerge as an area of remunerative opportunities for the leading players in the UAE facility management market during the forecast period.
A. Globally, Dubai would provide lucrative prospects for the UAE facility management market in the years ahead.
A. Massive investments in UAE's tourism sector for economic diversification is expected to present remunerative opportunities for the leading players in the UAE facility management market during the forecast period.
A. Lack of funds & resources with small & medium-sized companies to avail facility management services might impede the market growth.
