Qatar 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 Dynamics and Revenue Forecast to 2030

Qatar Facility Management Market Overview

Valued at $4,613.0 million in 2019, the Qatar facility management market size is projected to demonstrate a CAGR of 16.4% during the forecast period (2020–2030). The upcoming FIFA World Cup 2022 in Qatar and the Qatar National Vision 2030 are boosting the Qatar facility management industry.

The COVID-19 pandemic has created a significant impact on Qatar’s economic conditions, owing to a reduction in the growth rate due to a halt in various operations. Additionally, an increase in public borrowings and rise of unemployment owing to the outbreak have resulted in a reduction in the consumer spending on these services, which has negatively affected the facility management market in Qatar.

Property Services Generate Highest Revenue, due to Booming Construction Industry

In 2019, the property services category generated the highest revenue in the Qatar facility management market, on the basis of service. The country is witnessing a boom in its construction industry owing to the upcoming mega events and the Qatar National Vision 2030, which are creating a huge demand for property management services in order to cater to the needs of the newly constructed buildings in the country.

The property services category is sub-categorized into heating, ventilation, and air conditioning (HVAC) maintenance, mechanical & electrical maintenance, and others. Among these, HVAC maintenance accounted for the largest market size in 2019, which can be attributed to the extreme climatic conditions in the country resulting in the high dependence of commercial buildings on HVAC systems, which require regular maintenance.

Increasing Need for Attractive and Clean Facilities to Drive Commercial Category

The commercial category, based on end user, is projected to witness the fastest growth in the Qatar facility management market. This can primarily be ascribed to the increasing need for attractive and clean facilities for increasing the footfall of tourists and locals. Additionally, the increasing awareness among end users regarding commercial building management, to optimize the operational expenditure, is fueling the demand for facility management services in Qatar.

Offloading of Non-Core Tasks To Lead to Higher Demand for Outsourced Services

In terms of the mode of service, the facility management market in Qatar is bifurcated into in-house and outsourced services, of which in 2019, the outsourced mode of service held the larger revenue share. Outsourced services provide integral support to businesses by maximizing the return on investment and establishing long-term competitive advantages for end users in the market, owing to which they are highly preferred.

The outsourced services category has been further sub-categorized into integrated, bundled, and single services. Among these, the integrated services category is expected to demonstrate the fastest growth during the forecast period. A large number of commercial and industrial units are offloading their non-core tasks, such as facility management services, and outsourcing this work to integrated service providers. This is resulting in increasing business opportunities for integrated service providers.

Soft Services To be Highest Revenue Generators, owing to Increasing Demand for Cleaning Services

During the forecast period, the soft services category is expected to generated the highest revenue, on the basis of type. This would be owing to the increasing demand for cleaning services, which ensure high standards of cleanliness, hygiene, safety, and customer service. With the rise in the standard of living and increase in the consumer spending, the soft service demand is projected to surge, in turn, boosting the Qatar facility management market.

Large-Scale Infrastructure Development Taking Place in Qatar

Qatar is gearing up for massive infrastructure developments and challenges on account of the upcoming FIFA World Cup 2022 and the Qatar National Vision 2030. With the growing facility management industry, companies in this field are becoming active and keeping track of the developments here. The increasing demand for facility services is attributed to the steady development of commercial and residential properties in the country. As new towers, buildings, stadia, malls, and other structures are being constructed in the country, the Qatar facility management market is expected to witness exponential growth in the coming years.

In order to promote, educate, and empower facility service providers in the area of sustainable practices, a new initiative was launched in the country. Under this initiative, the Facility Management Interest Group was set up by the Qatar Green Building Council (QGBC) and the Middle East Facility Management Association (MEFMA), as a platform where the best practices related to facility services can be shared. The QGBC’s main goal is to raise awareness and understanding on sustainability and green buildings in Qatar, by establishing close ties with organizations operating in the industry. Such factors are expected to propel the market in the country during the forecast period.

Increasing Awareness regarding Protection of Assets is Major Market Trend

The major trend being observed in the market is the increasing awareness regarding the protection of assets. For any organization, its facilities are its assets that support its primary business. Companies are becoming aware of the importance of asset protection, as assets entail a huge investment, thus impelling them to invest in these services. Asset protection involves achieving the investor’s profitability objectives, as well as minimizing the capital expenditure on the assets. Thus, facility-service-providing companies managing multiple assets are focusing on integrating sustainable environment, infrastructure, technology, real estate, and people to achieve maximum efficiency.

Upcoming FIFA World Cup 2022 and Qatar National Vision Will Drive demand for Facility Management Services

The upcoming FIFA World Cup 2022, which is to be held in the country, is one of the major factors on account of which the market is expected to witness growth. The overall spending over a wide range of infrastructure projects, to host the world cup, is estimated at around $220 billion. On an average, over 10.0% of Qatar’s annual national output on building infrastructure is being spent to host the event. Additionally, the country has revealed plans to build a 40,000-seat modular arena for the same, which will include seats, concession stands, bathrooms, shops, and other facilities. Such developments are likely to increase the requirement for facility management services, in turn, driving the market growth.

The Qatar National Vision 2030 is another of the major drivers that are expected to propel the growth of the facility service industry in Qatar. The initiative was launched in 2008 by the Qatari government to boost its economic growth. It is based on four key pillars: 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 enhancing other sectors, such as infrastructure and tourism.

The vision is laying the foundation for rapid infrastructure development and investments to achieve its aim. The vision will offer wide areas of opportunities for the growth of the facility management market in Qatar in the coming years.

Contract Wins Being Adopted as Key Strategy

The Qatar facility management market has several players involved, which include Darwish Interserve Facility Management W.L.L., CBM Qatar L.L.C., AKTOR Qatar W.L.L., and Mosanada Facilities Management Services.

In recent years, players in the industry have focused strongly on winning contracts in order to stay ahead of their competitors. For instance:

• In June 2020, CBM Qatar L.L.C. secured two facility service contracts from the Al Kaabi Tower located on Al Aaliya Street and the Embassy of the Republic of Singapore, both in Doha. As per the contracts, the company will provide cleaning, security, and mechanical, electrical, and plumbing (MEP) services for two years at the above-mentioned sites.
• In January 2020, Darwish Interserve Facility Management W.L.L. secured a three-year facility service contract from the Qatar Civil Aviation Authority. The company would provide integrated facility management services, such as cleaning and MEP services, at the Qatar Air Traffic Control Centre (QATCC).

Some of the key market players in the Qatar Facility Management Market Are:

Market Size Breakdown by Segment

The report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

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