Kuwait Facility Management Market Size & Share Analysis- Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Kuwait Facility Management Market Trends & Growth Drivers

Economic Diversification Is a Key Trend

• According to the press release published in the ARAB NEWS, in September 2021, the Kuwait Oil Company planned to invest more than $6.1 billion in exploration over the next five years and will increase production to 4 million barrels per day by 2040.
• As Kuwait is highly dependent on oil revenue, there is an urgent need to diversify its economy. 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.
• These investments are also aimed at improving the business environment and attracting foreign players.

Growing Hospitality Management Drives the Market

• The government is taking several steps to boost the country’s tourism industry, such as encouraging private investments, expanding airport capacity, building new attractions, and increasing international promotion campaigns, which are providing a push to the hospitality industry in the country.
• According to the WTTC, the total travel & tourism GDP in 2020 was 3.3% of Kuwait’s total economy, and leisure travel spending stood at $2,661.7 million in 2020.
• Moreover, the country’s international tourism expenditure in 2020 was $393.5 million. These factors have driven the construction of hospitality units, thus pushing the market for facility management in the country.

Lack of Competent Professional Resources Is a Challenge

• The lack of professional resources to provide quality facility management services is one of the major challenges for the Kuwaiti market growth.
• As facility management is a labor-intensive industry, service providers are facing problems in hiring skilled staff. This complicates the job of these companies, as their services are entirely based on the size and ability of the workforce.
• According to Société Générale S.A., the services sector (facility management is a part of the service sector) represents 69.05% of the GDP and employs 71.1% of the active population of Kuwait.
• Efficient professional resources are required to provide quality services to customers.
• Moreover, as companies are relying on the expatriate workforce, rules and regulations related to the immigration of workers are a major challenge faced by the market players in Kuwait.

Kuwait Facility Management Market Analysis

Service Insights

• The cleaning service category is projected to register the fastest growth, advancing at a CAGR of over 10%, in the Kuwaiti facility management market during the forecast period.
• This can be because the COVID-19 pandemic has placed health and sanitation in higher demand. Since the pandemic started, the expectation of clean, hygienic, and germ-free workspaces and public spaces has increased.
• Moreover, scanners and sensors are quickly being redeployed and innovated to help enterprises and governments deal with the safety aspect of sanitation.
• Whereas, the property category dominates the market. This is attributed to the increasing need for property management services to cater to the needs of newly constructed buildings in the country.
• In addition, the country is witnessing growth in its construction industry, attributed to the upcoming projects in Kuwait, which are creating a huge demand for facility management services.

Services covered in the report include:

• Property (Largest Category)
• Cleaning (Fastest-Growing Category)
• Security
• Catering
• Support
• Environmental Management
• Others

End User Insights

• The commercial category dominates the market, and it is also expected to witness the fastest growth in the coming years.
• This is because the country is diversifying its economy by focusing on the service and tourism sectors, under the economic diversification plan.
• As a result, the country is witnessing the large-scale expansion of hotels, commercial centers, malls, and several other commercial projects, which, in turn, boosts the demand for facility management services in Kuwait.

The following end users are included in the report:

• Commercial (Largest and Fastest-Growing Category)
• Industrial
• Residential

Mode Insights

• The outsourced category leads the facility management market of Kuwait, and it is also expected to attain the same position in the coming years.
• This is mainly due to the involvement of external parties enables companies to focus on their core competencies instead of other services.
• Also, organizations are shifting toward bundled outsourcing, in order to come up with the opportunity for multi-skilling and multi-tasking which can generate further operational efficiencies and performance benefits.

Modes covered in the report are:

• In-House
• Outsourced (Larger Category and Faster-Growing Category)

Type Insights

• The hard service category is expected to attain the highest growth rate in the market during the forecast period.
• This can be majorly due to the increasing investments by the government in industries like transport, energy, construction, and others, which lead to the expansion of the infrastructure sector.
• Whereas, the soft category is estimated to have held the largest revenue share, of around 35%, in the market in 2024.
• This is due to the increasing demand for soft services, including cleaning services, which ensure superior standards of cleanliness, hygiene, safety, and customer service.

The following types are included in the report:

• Hard (Fastest-Growing Category)
• Soft (Largest Category)
• Others

Kuwait Facility Management Market Share

Market Nature – Medium Fragmented

The Kuwaiti facility management market is medium fragmented in nature, due to the presence of a large number of local players. These players have been involved in several development strategies, such as mergers and acquisitions, partnerships and collaborations, and facility expansions, to gain a competitive edge.

Local players are currently dominating the market in the country and there is a limited presence of specialized global facility management service providers, thus international players are choosing to collaborate with local players to enter the market.

Kuwait Facility Management Market News

• In August 2022, Al Mulla Office Automation Solutions offered the secret sauce for exceptional customer service in the country.
• In July 2022, ENGIE Solutions Kuwait offered comprehensive solutions to guide Kuwait's transition to renewable energy. It provides energy efficiency solutions for various Kuwaiti facilities, such as hospitals, mosques, retail malls, and hotels.
• In May 2022, Limak Inşaat Kuwait S.P.C. participated, to support national employment, in the 3rd edition of the Youth Public Authority's 'Facilities Management' training program.