Saudi Arabia Facility Management Market Size and Share Analysis by Service (Property, Cleaning, Security, Catering, Support, Environmental Management), End User (Corporate and Business, Public Administration, Industry and Manufacturing, Hospitality, Healthcare, Construction, Education), Mode (In-House, Outsourced), Sector (Public, Private), Type (Hard, Soft) - Industry Demand Forecast to 2030

Market Overview

The Saudi Arabian facility management market was estimated to generate $37,378.1 million in 2022, and it is expected to grow at a CAGR of 11.2% during 2022–2030, to reach $87,248.7 million by 2030.

The key factors augmenting the growth of the industry are the rising construction activities and growing tourism in the region. The spending of a significant part of the GDP on construction and the strong government support for this sector are the primary factors driving facility management expenditure in the kingdom.

Thus, the Kingdom of Saudi Arabia's expanding infrastructure development projects, such as the Red Sea Project, Qiddiya Entertainment City, King Abdullah Financial District, and Neom City, as well as the Saudi Vision 2030 development plan, are expected to accelerate the growth of digital infrastructure and support business and corporate expansion.

Moreover, the growing adoption of the internet of things, rapid industrialization, employee engagement programs, and swift industrial automation are expected to further drive the growth of the market in Saudi Arabia.

Additionally, facility management provides numerous advantages to an organization's business strategy, communications, and operational efficiency, including support for staff productivity, risk management for staff and facilities, promotion of sustainable approaches to long-term cost management, mitigation of the effects of natural disasters, and security.

Impact of Pandemic on Industry

With the announcement of the countrywide lockdown, the industry faced a significant loss. This is attributed to the restrictions imposed on pilgrims during the holy month of Ramadan. It includes the Hajj and Umrah pilgrimages, which attract millions of tourists from around the world; their suspensions put a massive dent in international arrivals and domestic travel activities.

Owing to this, operations across shopping complexes, mosques, malls, hotels, recreational centers, and theaters were put on hold, in order to curtail the spread of the virus across the country. This, in turn, led to a negative impact on the sector, with a significant drop in the demand for services across such facilities.

However, once the situation improved, Saudi Arabia’s General Commission for Audiovisual Media reopened movie theaters with strict guidelines on social distancing. Therefore, with the opening of commercial facilities gradually, the market for facility management is expected to bounce back, as facility owners rush to do the needful before welcoming back people.

Soft Services Hold Major Share

The soft services category is estimated to hold the largest share, around 70%, in 2022. The category is driven by the high adoption of cleaning, support, catering, and security services by public and private institutions and complexes.

There is a significant demand for outsourcing these services due to the increasing corporate sector competitiveness and a desire to focus on the core strengths. The benefits of outsourcing include savings on the costs associated with commercial space planning, catering, equipment lifespan, energy use, technical maintenance, and other aspects. Outsourced facility management services are, moreover, necessary for managing bigger spaces. This need for them is also fueled by the desire for improved workplace environments and lower operating expenses.

Furthermore, corporations are turning to facility management companies to provide all the aforementioned services for the satisfaction of clients and employees, which, in turn, drives the demand for soft services.

Growing Construction Activities Key Booster of Service Demand

One of the municipal transformation projects resulting from the National Transformation Program 2020 and the Saudi Vision 2030 is the Application of Smart City Concepts initiative, which has been launched by the Ministry of Municipal and Rural Affairs. Its main goal is to accelerate urban development in the nation, which will raise peoples' levels of satisfaction and improve cities' livability and sustainability.

Furthermore, this initiative aims to improve the efficiency of city management, minimize the negative environmental impact, attract local & foreign investments, and create job opportunities. The government has planned to apply the concepts of smart cameras, smart parking, smart solid waste disposal, smart lighting, and environmental pollution monitoring in five cities.

In all, the country has around $1 trillion worth of projects planned or under construction, which will further drive the facility management market in Saudi Arabia. Along with the mega projects, such as AMAALA, King Salman Park, QIDDIYA, Red Sea project, Jabal Omar, Diriyah Gate, NEOM, and King Abdullah Financial District, the Saudi Arabian government has invested massively in home maintenance startups, such as B8ak, FalconViz, Ajeer, and Muqawiloon.

Moreover, the prosperous hospitality industry, owing to the presence of many tourist attractions, is leading to the increasing demand for facility management services in the country.

Moreover, to enter the market and cater to customers in an efficient manner, global companies are increasingly joining hands with local firms. The increasing awareness about the advantages of facility management and outsourcing these services is further fueling the growth in the demand for them.

Explore more about this report - Request free sample pages

Corporate and Business Sector Is Largest End User

The corporate and business sector accounted for the largest share, around 35%, in 2022, and it is expected to show a significant growth rate, around 12%, during the forecast period. Under its economic diversification plan, the kingdom is focusing on the service and business sectors. As a result, the country is witnessing the large-scale expansion of office spaces and business zones, which, in turn, is expected to boost the demand for facility management services in Saudi Arabia.

The King Abdullah Economic City (KAEC), which was created through a public–private collaboration between the Saudi Arabian government and private investors, is the largest privately funded economic zone in the world. A gateway for trade and logistics, KAEC gives businesses access to a rapidly expanding regional market.

Moreover, the industry and manufacturing category is growing with significant rate. More than 100 national and international firms in the consumer products, automotive, logistics, and pharmaceutical industries have operations in the city. For instance, a vehicle manufacturer is building commercial trucks here, an air conditioner company is preparing for production and exports, and a European oil company runs a lubricant blending facility in the city. A bonded zone and sophisticated storage operations will be added to the city in the upcoming years, which would increase the demand for FM.

Top Facility Management Companies in Saudi Arabia:

• Muheel Services LLC
• Safari Group
• APSG Group
• EFS Facilities Services Group
• Khidmah Sole Proprietorship LLC
• Musanadah Facilities Management Company
• Nesma Trading Co. Ltd.
• Al Borj International
• Petrojana

Saudi Arabia Facility Management Market Size Breakdown by Segment

The report analyzes the impact of the major drivers and restraints on the market, to offer accurate market estimations for 2017-2030.

Based on Service

• Property
  • HVAC maintenance
  • Mechanical and electrical maintenance
• Cleaning
• Security
• Catering
• Support
• Environmental Management

Based on End User

• Corporate and Business
• Public Administration
• Industry and Manufacturing
• Hospitality
• Healthcare
• Construction
• Education

Based on Mode

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

Based on Sector

• Public
  • In-house
  • Outsourced
• Private
  • In-house
  • Outsourced

Based on Type

• Hard
• Soft