Kuwait Facility Management Market Overview
The Kuwait facility management market is estimated to attain a size of $1,736.7 million in 2017 and is projected to witness a CAGR of 8.5% during 2018-2023. The growing application of facility management in commercial buildings, residential construction projects, infrastructure projects, and industrial projects is driving the growth of the market in the country.
KUWAIT FACILITY MANAGEMENT MARKET, BY SERVICE, $M (2013 – 2023)
The facility management industry in Kuwait is flourishing due to the increasing investment in the tourism and construction industries. The government of Kuwait has been consistently rolling out new infrastructural projects. For example, in 2017, the country undertook the construction of $492 million runway at Kuwait International Airport, and $1.3 billion project for the Burgan Oilfield. Additionally, the country’s five-year economic development plan of 2015 assigned $116 billion on construction spending for various projects.
On the basis of service, the Kuwait facility management market is segmented into property services, cleaning services, security services, catering services, support services, environmental management services, and other services. The other services include reception staffing, utility management, furniture supplies, and contract management. Property, cleaning, and security are the three most preferred services among end users in Kuwait. Cleaning services are expected to register the fastest growth in the facility management market of Kuwait, during the forecast period.
Kuwait Facility Management Market Dynamics
Economic diversification is the key trend observed in the Kuwait facility management market.
The major trend observed in the Kuwait facility management market is the country’s increased investment in the construction sector to decrease its economic dependency on the oil and gas sector. According to Institute of International Finance (IIF), Kuwait faced the hardest hit from global oil output-cut that led to 2.2% economic contraction in 2017. Also, according to the Organization of the Petroleum Exporting Countries (OPEC), Kuwait’s energy sector makes up about 60% of its GDP and almost 95% of its export revenue. Hence, to reduce its reliance on the energy sector, the country is focusing on increasing private investments in other sectors such as tourism, hospitality, and construction, which is expected to attract foreign players and support the growth of the facility management market in Kuwait.
The growing hospitality industry in the country and increasing investment in upcoming infrastructure projects are the major drivers expected to propel the growth of the facility management market in Kuwait.
The increasing investment in upcoming projects, especially in the residential and commercial units, malls, and others will strengthen the demand of facility management services in the country. Also, Kuwait’s growing real estate industry and increasing per-capita income of the young population is leading to high quality residential options, which in turn is leading to increased demand for companies to manage these facilities. To provide maintenance facilities to these properties, local and regional players are tapping the market potential. The real estate development companies in Kuwait are also launching their own affiliates. Thus, infrastructure development will have a positive impact on the growth of the market in Kuwait.
The lack of competent professional resources is the major restraint in the facility management market of Kuwait. It is a labor intensive industry, and the companies are facing problem in hiring skilled staff. This complicates the job of these companies, as their services are entirely based on workforce. Efficient professional resources provide successful delivery and quality services to customers. Also, as companies are relying on expatriate workforce, rules and regulations related to the immigration of workers is a major challenge faced by the market players in Kuwait.
Kuwait Facility Management Market Competitive Landscape
Some of the major players operating in the facility management industry are Kharafi National, O&G Engineering W.L.L, Fawaz Refrigeration & Air Conditioning Company, EcovertFM Kuwait, Al Mazaya Holding Company, Al-Awsat United Real Estate Co., R&E Petroleum Co., Refrigeration Industries & Storage Company, PIMCO, and United Facilities Management.