Facility Management Services Market in Middle East 2016-2020

Overview of the facility management (FM) services market in the Middle East

Market research analysts at Technavio have predicted that the FM services market in the Middle East will grow steadily during the forecast period and post a CAGR of around 10% by 2020. This market research analysis identifies the increasing focus of countries in the Middle East towards infrastructure development as one of the primary growth factors for this market. Owing to a number of mega-scale projects, there will be an exponential increase in the growth of the infrastructure development industry. The construction of the Kingdom Tower in Saudi Arabia and the expansion of the Al Maktoum International Airport in Dubai that involves expanding the passenger terminal to increase the passenger capacity from five million to more than 26 million per year are some of the major projects that will drive infrastructure development. Additionally, the construction of a new harbor facility at the Al Ahmadi harbor in Kuwait, the underground metro project in Riyadh, and the development of smart cities such as Lusail City in Qatar, will also drive the growth of the infrastructure development industry. This, in turn, will drive the demand for facility management as they include industries such as hospitality and real estate, that are major end-users for facility maintenance services.

In terms of geography, Saudi Arabia will be the major revenue contributor to the FM services market throughout the next four years. The country is characterized by rapid infrastructure and real estate activities especially in the port city of Jeddah, that has a number of educational institutions and commercial centers. The presence of several residential and commercial properties, hotels and service apartments, and the government’s constant focus on infrastructure development will drive the demand for facility management services in this region.

Competitive landscape and key vendors

The market is characterized by the presence of both established and domestic facilities management companies, where several vendors offer integrated facility services to a number of end-user industries such as infrastructure, industrial, healthcare, and educational institutions. Currently, the UAE has the largest concentration FM companies in this region, and Saudi Arabia consists of a mix of both integrated FM vendors and local manpower supply companies that outsource labor to end-users through contractual agreements. To sustain themselves in the market and enhance customer base, facilities services companies are focusing on offering additional services. For instance, one of the leading vendors Emrill Integrated Facilities Management, provides FM services, health and safety services in workplace management, and also real-time customer center services.

The leading vendors in the market are -

• Emrill Integrated Facilities Management
• Macro
• Imdaad
• Farnek
• Saudi Oger
• Reliance FM
• Etisalat Facilities Management

Segmentation by services and analysis of the FM services market in the Middle East

• Hard services
• Soft services

Due to the increased preference of end-user industries in the region to outsource housekeeping, security, and pantry services, the soft services segment dominated the market during 2015. This segment includes several services including maintenance, security, and housekeeping. Additionally, the expected increase in waste generation by GCC countries due to a number of ongoing megascale construction projects will induce FM service vendors to provide waste management services as well.

Segmentation by end-users and analysis of the FM services market in the Middle East

• Infrastructure
• Industry
• Education
• Government
• Healthcare

According to this market study, the infrastructure industry will be the major end-user segment of the FM services market throughout the predicted period. The lack of a direct commercial taxation policy and direct income tax system and the availability of a stable banking sector will result in increased investments in infrastructure development. This will, in turn, increase the number of development projects and increase investments from foreign real estate agencies, propelling the market’s growth prospects.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the facility management services market in the Middle East?
• What are the key market trends impacting the growth of the facility management services market in the Middle East?
• What are the challenges to market growth?
• Who are the key vendors in the facility management services market in the Middle East?
• What are the market opportunities and threats faced by the vendors in the facility management services market in the Middle East?
• Trending factors influencing the market shares of the Middle East.
• What are the key outcomes of the five forces analysis of the facility management services market in the Middle East?

Technavio also offers customization on reports based on specific client requirement.

Related reports

• Facility Management Services Market in India 2016-2020
• Global Facilities Management Services – Procurement Market Intelligence Report 2016
• Global Next-generation Building Energy Management Systems Market 2016-2020