Market Definition
Facility Management (FM) refers to the efficient and effective management of human resources, operations, communications, security, catering, etc., to ensure the smooth running of an infrastructure. These services are essential to an organization's productivity, cost savings, & employee well-being. As the hybrid working culture continues to expand with the rising demand for more flexibility at work, most organizations are considering outsourcing facility management services.
Market Insights
The UAE Outsourced Facility Management Market is expected to grow at a CAGR of around 11% during the forecast period, i.e., 2023-28. Most of the market expansion would be driven by the booming tourism and building & construction industries of the country, which owes to the mounting influx of tourists and active government efforts toward diversifying the economy away from the oil & gas sector, respectively.
The UAE is amongst the most popular tourist destinations in the world, owing to its modern skyscrapers, rich culture, desert experience, shopping festivals, lavish lifestyle, and theme parks. With the growing number of tourists in the country, more & more hotels, resorts, shopping malls, and corporate spaces are being developed, which require regular maintenance in order to stay in their best conditions and keep luring visitors.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 11% |
| Region Covered | Abu Dhabi & Al Ain, Dubai, Sharjah & Northern Emirates |
| Key Companies Profiled | EMRILL Services LLC, Imdaad LLC, Farnek Services LLC, EFS Facilities Management Services, Etisalat, Khidmah LLC, Al Shirawi Facilities Management LLC, Interserve, Transguard, SERCO |
| Unit Denominations | USD Million/Billion |
As a result, several organizations across the country are seeking outsourced FM services to achieve reduced operational costs and freedom to focus on their core business areas, thereby driving the market. Moreover, the rising number of smart city & green building projects, coupled with the flourishing e-commerce sector, i.e., leading to the increasing establishment of warehouses, are other prominent aspects augmenting the demand for outsourced facility management services in the UAE.
In order to cater to the varied end-user requirements, FM service providers are actively working on expanding their reach while also integrating advanced technologies like artificial intelligence, robotics, & infrared/thermal scanning, among others, into their service offerings and, as a result, creating new directions for the UAE Outsourced Facility Management Market to witness lucrative prospects in the coming years.
Market Segmentation
Based on Type:
Of them all, integrated services are projected to witness a rapidly rising demand rend in the UAE Outsourced Facility Management Market during 2023-28. Integrated Facility Management (IFM) is consolidating multiple FM services like contracts, vendor partnerships, space management, & real estate planning, among others, under a single unit.
It offers various benefits to organizations, such as streamlined operations & simplified processes, reduced costs, enhanced operational efficiency, minimized complexity, and improved service delivery. The flourishing IT & telecom sectors in the UAE are the prime end-users of IFM services as they need to efficiently manage all their operations, such as project management, asset management, on-demand maintenance, scheduled services, & preventive maintenance, among others, at a single point.
Moreover, the ever-rising demand for integrating cloud-based technologies into facility management solutions due to advantages like enhanced reliability, lower costs, customization, remote access, & real-time insights is also augmenting the demand for IFM services and, consequently, stimulating the growth of the UAE Outsourced Facility Management Market. Several companies operating in the industry are joining forces with tech companies to integrate cloud-based software into their FM service offerings and offer their clients the above-cited benefits. For instance:
Based on End-User:
Here, the commercial sector is projected to acquire a significant market share through 2028. It owes primarily to increasing infrastructural development associated with hotels, retail outlets, malls, & office buildings in the country. In the UAE, Dubai is witnessing various ongoing & upcoming commercial development projects in different sectors like IT & telecommunication, manufacturing, BFSI, etc.
These developments are backed by massive government investments & efforts toward diversifying the economy from oil & gas exports. The rising establishment of corporate buildings owing to the expanding IT sector, coupled with active efforts by telecom companies on 5G deployment, are creating profitable prospects for FM service providers to yield significant profits in the future. Hence, these trends indicate a significantly growing UAE Outsourced Facility Management Market across the commercial sector during 2023-28.
Regional Projection
Geographically, the UAE Outsourced Facility Management Market expands across:
Of all regions in the UAE, Dubai holds the largest share of the Outsourced Facility Management Market. It ascribes to its booming construction industry with numerous ongoing infrastructural development projects, i.e., generating massive demand for FM services. The trend of outsourcing FM services is gaining ground in different industries across Dubai.
Dubai holds most commercial development projects in the UAE. Ever-increased government investments in various commercial & infrastructural development projects, significant improvements in tourism activities, especially post-Covid-19 pandemic, and surging green building construction activities are propelling the demand for FM services in the region.
Furthermore, the increasing establishment of warehouses & logistics centers owing to the rapidly expanding e-commerce sector is another prominent aspect fueling the demand for FM services in Dubai. These trends are likely to create lucrative prospects for the key companies operating in the UAE Outsourced Facility Management Market to expand their consumer base & yield significant profits in the coming years.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The UAE Outsourced Facility Management Market is projected to grow at a CAGR of around 11% during 2023-28.
A. The swiftly expanding tourism industry and increasing number of commercial & infrastructural development projects are the prime factors projected to drive the UAE Outsourced Facility Management Market during 2023-28.
A. EMRILL Services LLC, Imdaad LLC, Farnek Services LLC, EFS Facilities Management Services, Etisalat, Khidmah LLC, Al Shirawi Facilities Management LLC, Interserve, Transguard, and SERCO are the key companies participating in the UAE Outsourced Facility Management Market.
A. Integrated FM services are anticipated to emerge as an area of remunerative opportunities for the leading players in the UAE Outsourced Facility Management Market during 2023-28.
A. In the UAE, Dubai would continue generating remunerative prospects for the Outsourced Facility Management Market during 2023-28.
