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

Qatar Facility Management Market Trends & Growth Drivers

Rising Infrastructural Development Is a Key Trend

• The Government of Qatar is focusing on infrastructure development, which helps in boosting its economy. The Municipality and Environment Sector of Qatar assigned $7000 million (QR 25.4 billion) in its 2021 budget to develop water and electricity networks and major infrastructure projects, in addition to ongoing the work of development, maintenance, and expansion of roads.
• Furthermore, industrialization has also boosted the infrastructural development in Qatar. For example, in 2020, Manateq – Economic Zones Company announced an investment of $2700 million (QR 10 billion) for developing basic infrastructure facilities in industrial zones.
• In addition, according to The Peninsula, Qatar’s public works authority, Ashghal, has started 22 new projects worth $1,126 million (QR 4.1 billion) in 2023.
• Additionally, the six projects that have been awarded an estimated worth of $302.1 million (QR 1.1 billion) include the construction and development of several buildings, in collaboration with various authorities.

Introduction of Freehold Property in the Country Drives the Market

• One of the major factors expected to drive the Qatari facility management market is the introduction of freehold properties.
• In 2020, the Government of Qatar decided to allow non-Qataris to own properties in the country, to accelerate investments.
• The property eligibility comprises allowance to non-Qataris to own shops, offices, villas, and units in residential facilities and participate in the real estate developments in assigned areas.
• This decision will drive investments in the country’s building sector and propel the demand for FM services eventually.

Stringent Staffing Policies and Labor Laws of the Country Is a Challenge

• Stringent rules and regulations regarding staffing policies are expected to be the chief restraint in the growth of the market.
• Companies operating in this field are facing various problems, such as obtaining visas for staff, staff accommodation, and others.
• For example, residents are not allowed to share their family living area with bachelors, thus migrant workers have to relocate to the outskirts of the city, which leads to an increase in their travel time to work sites.
• Some of the essential points compiled from Qatar labor law include overtime dues, and mandatory benefits such as annual leave, sick leave, gender equality, end-of-service benefits, and health insurance.
• In order to comply with strict labor and workforce-related norms, facility management service providers need to invest their time in abiding by these regulations, which ultimately increases their capital expenditure.

Qatar Facility Management Market Analysis

Service Insights

• The cleaning category holds the largest revenue share and it is also projected to record the fastest growth during the forecast period in the Qatari facility management market.
• This is ascribed to the increasing need for cleanliness and hygiene in the hospitality and commercial sectors.

Services covered in the report include:

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

End User Insights

• The business and corporate category is the largest end-user category in the market, with an estimated revenue share of around 44% in 2024, and it is also expected to witness the fastest growth in the coming years.
• The largest share of this category is attributed to the increasing need for attractive and clean facilities to attract customers/visitors.
• Also, increasing awareness among end users regarding commercial building management to optimize operational expenditure is fueling the market growth in the country.

The following end users are included in the report:

• Business and Corporate (Largest and Fastest-Growing Category)
• Public Administration
• Industry and Manufacturing
• Hospitality
• Healthcare
• Construction
• Education
• Others

Mode Insights

• The market for outsourced services is expected to gain momentum in the coming years and will progress at a CAGR of around 22% during the forecast period.
• This can be ascribed to the increasing demand for FM services due to their growing awareness and the surging construction industry of the country.
• In addition, the outsourced services provide integral support to businesses by maximizing return on investment and establishing long-term competitive advantages in the marketplace.

Modes covered in the report are:

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

Type Insights

• Soft services accounted for the largest revenue share in the market, accounting for an estimated share of around 60% in 2024.
• This is due to the increasing demand for soft services, including cleaning services, which confirm higher standards of cleanliness, hygiene, safety, and customer service.
• Whereas, the hard services category is expected to record the fastest growth during the forecast period.
• This can be ascribed to the country's rapidly growing building and construction industry. Furthermore, these services the ensure safety and well-being of employees or building residents.

Types covered in the report include:

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

Sector Insights

• The private category dominates the market as well as it is expected to witness the fastest growth in the coming years.
• The private sector has recognized the benefits of outsourcing FM services to optimize and transform the delivery aspects and support their functions.
• The strategic approach based on acquiring value-added skills from the private sector has created a high demand for these services in the country.
• Furthermore, the rising number of contracts between facility management providers and private institutions has pushed the market.

The following sectors are included in the report:

• Public
• Private (Larger and Faster-Growing Category)

Qatar Facility Management Market Share

The Qatari facility management market is fragmented in nature, due to the presence of a large number of local and international 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.

Qatar Facility Management Market News

• In July 2023, Estithmar Holding Q.P.S.C. announced that its subsidiary, Elegancia Facilities Management, has secured a partial contract for facility management services at the Queen Alia International Airport in Jordan.
• In June 2023, Estithmar Holding Q.P.S.C. signed three memorandums of understanding (MoUs) with Iraq’s National Investment Commission for a value of $7 billion, to build modern comprehensive cities and 5-star hotels and operate and manage several hospitals in Iraq.
• In March 2023, Darwish Interserve Facility Management W.L.L. announced a partnership with Cultural Village (Katara).
• In March 2023, CBM Qatar LLC announced that its Atalian U.K., Ireland, and Asia operations will merge with the OCS Group, to create a new international FM provider.
• In July 2022, OCS Group signed a sales and purchase agreement with Clayton, Dubilier & Rice (CD&R). Under this agreement, funds managed by CD&R will acquire the entire share capital of OCS Group International, the facility services division of OCS Group.