Facility management has become a progressively important aspect of the construction, tourism, healthcare, retails, defense & military verticals and is often expected as a key enabler in improving an organization’s resources efficiently and competitively. The Middle East facility management market is anticipated to grow at a CAGR of approximately 15%, owing to increasing construction activities and significant demand from transportation, education, and government verticals in the region.
The Middle East is well known for its crude oil extraction; therefore, to decrease its dependence on it, the region is focusing more on infrastructure development to generate more revenue. In addition, foreign investments in the service sectors such as tourism, BFSI, and entertainment, among others, are on the surge, supporting the growth of the Middle East facility management market. Further, various initiatives undertaken by the governments of the Middle East nations towards social welfare, including healthcare, and affordable housing, are creating growth avenues for the facility management market.
The construction segment holds a substantial market share
The construction segment is the key segment among the end users, which holds a significant share in the Middle East facility management market. The rapid development of infrastructure and the increasing number of retail outlets, hotels, and malls are the vital factors attributed to the surging demand for facility management solutions. A surge in the IT industry across the Middle East is further anticipated to boost the overall market growth during the forecast years.
Moreover, increasing investment in infrastructure and real estate is accelerating the construction of smart buildings. Adding to this, the increasing number of buildings requiring maintenance and cleaning services increases the demand for facility management in the Middle East.
Explore a related report on the Global Contractual Cleaning Services Market
Middle East facility management market is stirring in the direction of the next level of disruption where workplace strategies, digitalization, outsourcing, and technological innovations hold the prominent ability for improving profitability and diminishing expenses. The outbreak of COVID-19 has elevated the need for industrial transformation, fueled by technology and automation that has pushed the demand for facility management solutions across the industries.
UAE in the spotlight owing to robust investment initiatives of the Government
The UAE holds most of the development projects that have been undertaken in the commercial sector. Increasing investments from the government are anticipated to positively impact the facility management market. Moreover, development in tourism post-COVID-19 is expected to support the market’s growth. As per the Dubai Smart City Plan of 2021, the proliferation of consulting firms, and IT and economic diversification with the construction of several new complexes pushed the overall market growth of the facility management market.
Every year, a large number of tourists fly down to Dubai, owing to the luxurious lifestyle boasted by the city. Five-star restaurants with world-class facilities, hospitality, food culture, heritage, and sporting activities are the major factors that attract tourists from all across the globe; reflecting a possible adoption of facility management solutions. Moreover, before the onset of the EXPO 2020 in Dubai, several investments were made by the governments such as infrastructure and associated commercial projects that further boosted the demand for facility management.
Market Structure and Competition Landscape
The Middle East facility management market is fragmented, owing to the presence of a large number of regional and international players. Some of the facility management service providers operating in the Middle East include, Al Shirawi Facilities Management LLC., Deyaar, Duserve Facilities Management & Building Cleaning Services LLC, Consolidated Contractors Co., Delight International Facilities Management, INAYA Facilities Management Services, AA Group, Creative Associate Facility Management, Oman International Group SAOC, Perfect Reflection Facilities Management Services, Como Oman, Genetco Facilities Management & Engineering Services, EMCOR Group Inc., White Gloves Facilities Management and Cleaning Services, Al Asmakh Facilities Management, Efs Facilities Services Group, Emrill Services LLC, Farnek Services LLC, Al Borj Facility Management, and Server Facilities Management, among others. The facility management service providers are integrating technology into their offerings that are supporting their portfolio, for instance:
- In 2020, Darwish Interserve Facility Management, a Qatar-based company signed a contract for three years for facility management services with the Civil Aviation Authority of Qatar to provide integrated amenities including cleaning and MEP at the Air Traffic Control Centre of Qatar.
- In March 2019, EMCOR (Dubai) Group Inc. signed a contract with Riyadh-based real-estate developer Tatweer Buildings Company to offer facility management services.
- In April 2019, Engie Cofely Energy Services LLC completed the full acquisition of Cofely BESIX Facility Management (CBFM). This acquisition offers direct access to the need of the clients.
Key Market Segmentation
RationalStat has segmented the Middle East Facility Management market based on service type, organization size, end user, and country.
- By Service Type
- Soft Facility Management Services
- House Keeping
- Pest Control
- Janitorial Services
- Pools Maintenance
- Landscaping
- Waste Management and Others
- House Keeping
- Hard Facility Management Services
- Cleaning Facility Management
- Waste Management Facility Management
- Security Facility Management
- Lighting Facility Management
- HVAC Systems Facility Management
- Lighting Facility Management
- HVAC Systems Facility Management
- Water Systems Facility Management
- Fire Safety Facility Management
- Others (incl. audio visual, roads & grounds, etc.)
- Soft Facility Management Services
- By Organization Size
- SMEs (Small and Medium Enterprises)
- Large Enterprises
- By End User
- Construction
- IT & Telecom
- Government
- Education
- Retails & Commercial
- Defense & Military
- Healthcare
- Others (Transportation and Logistics, Media and Entertainment, etc.)
- By Country
- Saudi Arabia
- UAE
- Qatar
- Oman
- Kuwait
- Turkey
- Israel
- Bahrain
- Rest of the Middle East
Research Methodology
RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
Secondary Sources
- Annual reports, company filings, investor presentations, product catalogs, company documents, industry associations
- Industry and market-related documents available in the public domain
- Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs
Why Buy this Report?
The report is intended for facility management service providers, construction and real estate companies, government organizations, market educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption pattern, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The Middle East Facility Management market is expected to grow at a CAGR of over 15% during the forecast period 2022-2028.
UAE is dominating the Middle East Facility Management market in 2021.
The Middle East Facility Management market is estimated at around US$ 24.5 billion in 2021.
Rapidly growing construction activities in the region are the key driver in the Middle East Facility Management market.
Major companies operating in the Middle East Facility Management market include Al Shirawi Facilities Management LLC., Deyaar, Duserve Facilities Management & Building Cleaning Services LLC, Consolidated Contractors Co., Delight International Facilities Management, etc.