Qatar Facility Management Market Overview
The Qatari facility management market is estimated to attain a size of $2,891.8 million in 2018 and is projected to reach $4,734.9 million by 2024, witnessing a CAGR of 8.5% during 2019–2024. 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.
The Qatari facility management market has a promising future due to increasing investment in the infrastructure sector, owing to the upcoming mega events in the country, such as FIFA World Cup 2022, Gulf Expo, and others. For instance, more than $200 billion is being invested for infrastructure development in the country which includes new rail lines, new international airport and port, highways, hotels, and various others, to host the FIFA World Cup 2022. Also, under the Qatar National Vision 2030, rapid expansion of tourism, education, and real estate sectors will contribute toward the economic growth of the country and result in demand for facility maintenance services.
On the basis of service, the Qatari facility management market is classified into property services (heating, ventilation, and air conditioning (HVAC) maintenance; mechanical and electrical maintenance; and others), 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. In the facility management industry of Qatar, the fastest growth during the forecast period is expected to be experienced by catering services, owing to growing hospitality and tourism industry in the country.
Based on end user, the Qatari facility management market is categorized into commercial, industrial, and residential. Commercial sector is estimated to account for the largest share in the market, with more than 40.0% revenue share in 2018. Under its economy diversification plan, the country is witnessing large-scale expansion of hotels, commercial centers, malls, and several other commercial projects, which in turn, are expected to boost the demand for facility management services in Qatar.
On the basis of mode, the Qatari facility management market is bifurcated into in-house and outsourced (integrated, bundled, and single). In-house mode of service is estimated to dominate the market in 2018, as it accounted for more than 60.0% revenue share. The dominance of in-house mode of service is driven by the fact that a large number of companies still operate through internal facility management team or professionals, which take care of regular maintenance of the properties.
Based on type, the market is classified into hard, soft, and others (catering services, vehicle fleet management, environmental management, space management, and utility management). Hard services are estimated to account for the largest share in the Qatari facility management market in 2018, driven by the fact that these services are technical in nature and hence are expensive. Moreover, certain hard services such as HVAC maintenance services, mechanical services, and lift management services are of critical nature, which are essentially required by commercial, industrial, or residential units.
Qatar Facility Management Market Dynamics
Major trend observed in the Qatari facility management market is increasing awareness regarding protection of assets. For any organization, its facilities are its assets that support its primary business. Companies are becoming aware about the importance of asset protection as it involves a huge investment, thus encouraging them to invest in these services. It involves achieving investor’s profitability objectives as well as minimising assets’ capital expenditure. Thus, facility management companies managing multiple assets are focusing on integrating the sustainable environment, infrastructure, technology, real estate, and people to achieve maximum efficiency.
The Qatar National Vision 2030 is one of the major drivers, which is expected to propel the growth of the facility management industry in Qatar.
Qatar National Vision 2030 was launched in 2008 by the Qatari government to boost its economic growth. It is based on four key pillars such as human development, social development, economic development, and environment development. The national vision aims to develop the country by reducing its economic dependency on the oil and gas industry and enhance other sectors such as infrastructure and tourism. The vision is laying foundation for rapid infrastructure development and investment to achieve its aim. The vision will offer wide areas of opportunities for the development and growth of the facility management market in the country.
The stringent staffing policies and labor laws of the country act as the major restraints in the growth of the Qatari facility management market. Some of the essential points of the Qatari labor law include overtime dues; mandatory benefits such as annual leave, sick leave, gender equality, end of service benefits, health insurance, and end of employment; and others. Companies operating in the market are also facing problems in obtaining visas for staff, finding staff accommodation, and others.
Qatar Facility Management Market Competitive Landscape
Some of the major players operating in the Qatari facility management market are Mosanada Facilities Management Services, Cofely Besix Facility Management, Al-Asmakh Management WLL, COMO Facilities Management Services, OCS Qatar LLC, CBM Qatar LLC, Elegancia Hospitality & Facility Management Services, Al Tamyoz Business Group, Conservo Facility Management Co. WLL, Confident Enterprises WLL, and ASTAD.