Kuwait Facility Management Market Research Report: By Service (Property, Cleaning, Security, Catering, Support, Environmental Management), End User (Commercial, Industrial, Residential), Mode (In-House, Outsourced), Type (Hard, Soft) - Industry Analysis and Demand Forecast to 2030

Market Overview

The Kuwaiti facility management market is estimated to have generated $954.4 million revenue in 2021, and it is expected to grow at a CAGR of 8.5% during 2021–2030. The key factors responsible for the growth of the industry include the growing hospitality industry and upcoming infrastructure projects.

The COVID-19 pandemic has severely impacted the market for facility management services in Kuwait. The major reasons for this include the pressure on client budget, arbitrary contract cancellation, idle manpower due to scaling down, supply chain disruption, increased health and safety concerns of employees, high-cost allocation toward safety and wellbeing, and cost escalation due to increased spending for quarantine and isolation services. In the coming years, the need for facility management in Kuwait is expected to rise, due to the increase in demand for cleaning and sanitation services, and rising demand for heating, ventilation, and air conditioning (HVAC) maintenance services.

Commercial and Outsourced Service Categories Dominated the Market

The commercial category is estimated to have held the largest share in the Kuwaiti facility management market in 2021, based on end user. 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 outsourced category is estimated to have led the facility management market of Kuwait in 2021, and it is also expected to attain the same position in the coming years, based on mode. This can be mainly because the involvement of external parties enables companies to focus on their core competencies instead of other services.

Cleaning Service and Hard Service Type To Witness High Growth Rate

The cleaning service category is projected to register the fastest growth in the Kuwaiti facility management market during 2021–2030, based on service. This can be because the COVID-19 pandemic has placed health and sanitation on higher demand. Since the pandemic started, the expectation of clean, hygienic, and germfree work spaces 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.

The hard service category is expected to attain the highest growth rate in the market during the forecast period, based on type. 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.

Economic Diversification Is a Key Market 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 and Upcoming Infrastructure Projects Driving 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 the 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.

Further, the Public Authority for Housing and Welfare (PAHW) of Kuwait announced a deal with the private sector for $495 million in housing projects, and further, this public–private project includes developing warehouses, handicrafts, labor accommodations, and infrastructural works. The growing real estate industry in the country and the increasing per capita income of the young population, which was $32,032.0 (KWD 9,743.5) in 2019, are leading to the preference for highly appealing residential units. Real estate development companies in Kuwait are also launching their facility management affiliates; hence, infrastructure development will have a positive impact on the growth of the Kuwaiti facility management market.

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Market Players Involved in Product Launches and Mergers and Acquisitions to Gain Significant Position

The facility management industry in Kuwait has a large number of players, which has increased the competition. In recent years, players in the market have been involved in different strategic developments in order to attain a significant position. For instance:

• In August 2021, Al Mulla Engineering AME, a member of Al Mullah Group Holding Company K.S.C.C., signed a distribution agreement with Johnson Controls AquaMist, a manufacturer of water mist fire suppression systems. Through this agreement, AME expanded its offerings by including an innovative technology of fire protection using a water-based fire suppression system through the water mist technique, which makes it the only company in Kuwait to have access to this technology.
• In December 2020, Kharafi National for Infrastructure Projects Developments Construction and Services S.A.E announced the achievement of ISO 41001:2018 “Facility Management – Management Systems” – through BUREAU VERITAS Company. With the help of this certification, the company became one of the first companies to achieve such a certificate in the Middle East region. The scope of the certification is providing IFM services for utilities operation and maintenance of the compounds of residential, commercial, and industrial sectors.

Key Players in Kuwait Facility Management Market Are:

• Kharafi National for Infrastructure Projects Developments Construction and Services S.A.E
• O&G Engineering W.L.L.
• Fawaz Trading & Engineering Services Co. W.L.L.
• EcovertFM Kuwait
• Al Mazaya Holding Company
• Al-Awsat United Real Estate Co.
• R&E Petroleum Co.
• Refrigeration Industries Co. (S.A.K.)
• PIMCO
• United Facilities Management (UFM)

Market Size Breakdown by Segment

The Kuwaiti facility management market report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.

Based on Service

• Property
  • Heating, ventilation, and air conditioning (HVAC) maintenance
  • Mechanical & electrical maintenance
• Cleaning
• Security
• Catering
• Support
• Environmental Management

Based on End User

• Commercial
• Industrial
• Residential

Based on Mode

• In-House
• Outsourced
  • Integrated
  • Bundled
  • Single

Based on Type

• Hard
• Soft