psalexa

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

  • Published: April 2021
  • Report Code: PE11355
  • Available Format: PDF
  • Pages: 132

Market Overview

The Saudi Arabian facility management market size stood at $31,264.1 million in 2020, and it is expected to demonstrate a CAGR of 11.1% during the forecast period (2021–2030). Advanced technologies, such as augmented reality (AR)/virtual reality (VR), artificial intelligence, and robots, are some of the key factors that are helping the market grow. Further, the increase in construction activities, along with the growth of the tourism sector of the country, is one of the major factors propelling the Saudi Arabian facility management industry.

The COVID-19 pandemic has had a negative impact on the industry on account of the countrywide lockdown in 2020. This has led to the shutting down of facilities such as malls, shopping complexes, and offices, along with restrictions on gatherings at mosques, which, in turn, has reduced the requirement for facility maintenance services.

Saudi Arabia Facility Management Market

Rising Awareness on Hygiene To Drive Cleaning Services at Highest CAGR during Forecast Period

Cleaning services, which were the fastest-growing category during the historical period (2015–2020), are expected to show the same trend during the forecast period, based on service. Moreover, this category will hold the largest share in 2030 owing to the rise in the demand for cleaning services due to COVID-19, which has led to a heightened awareness among people regarding general hygiene. As a result, entities will likely hire professionals for such services at their facilities, which, in turn, is expected to drive the market for facility management services in Saudi Arabia.

Saudi Vision 2030 Helped Business and Corporate Category Hold Largest Share in 2020

The business and corporate category held the largest share in the facility management market of Saudi Arabia in 2020, based on end user, and it is expected to retain its position in 2030. This is ascribed to the strong government support, along with the high investments in the business and corporate sector.

For instance, the National Transformation Program 2030 of the Government of Saudi Arabia, a part of its Saudi Vision 2030 development plan, focuses on accelerating the development of primary and digital infrastructure projects. This infrastructure growth will encourage businesses and corporates to expand in the kingdom, which will further raise the requirement for facility management services, thereby pushing the market of facility management in Saudi Arabia forward.

Reliability of In-House Mode To Help It Retain Its Dominance throughout Forecast Period

The in-house category held the larger share in 2020, under segmentation by mode, and this Saudi Arabian facility management market trend is likely to continue in the coming years. This can be ascribed to the increase in the reliance on in-house services, owing to its sustainability in the long run, primarily for asset management, catering, and security.

Rising Demand for Non-technical Services among Corporations Led to Largest Share of Soft services

On the basis of type, soft services held the largest share in 2020, and they are expected to retain their position in the forecast period. This is attributed to the high demand for non-technical services such as cleaning, security, catering, and support services at public, as well as private complexes and institutions. Furthermore, corporations are turning to facility management companies to provide all aspects of aforementioned mentioned corporate maintenance services for the satisfaction of clients and employees, which in turn drives the demand of soft services.

Rapid Infrastructure Growth Pushed Service Demand in Private Sector

On the basis of sector, the facility management market in Saudi Arabia was led by the private category in 2020. This is majorly attributed to the rapid construction of plastic factories, medical laboratories, educational buildings, and offices of construction companies.

Due to Volatile Oil Prices, Government Focusing on Economic Diversification

The increasing focus of the government on economic diversification is a key trend being observed in the Saudi Arabian facility management market. In order to reduce the dependence on the oil & gas sector, which was severely affected by the slump in the oil prices in 2015 and 2016, the government is putting a strong focus on developing a long-term economic roadmap to decrease the country’s dependence on hydrocarbons. In this regard, the government has introduced an economic reformation plan, known as the Saudi Vision 2030, in order to develop other sectors, including health, education, infrastructure, recreation, and tourism. Such factors are expected to propel the construction of several types of facilities, thus boosting the demand for facility management services in the kingdom.

Saudi Arabia Facility Management Market

Increasing Investments Leading to Wide-Scale Construction Activities in Saudi Arabia

The facility management sector in Saudi Arabia is majorly being driven by the growing infrastructure industry owing to a large number of construction projects in various stages of implementation in the country. The strong support from the government, along with the increasing investments in the sector, is propelling the requirement for facility management services. For instance, in January 2019, the government announced plans to invest $426 billion by 2030 in order to develop infrastructure and industries. Such factors are expected to augment the revenue for facility management companies in Saudi Arabia during the forecast period.

Due to Growing Infrastructure Investments, Saudi Tourism Sector Thriving

The tourism sector is one of the largest contributors to the country’s economy. With the growth of the tourism sector in recent years, the need for services to maintain hotels and resorts, shopping complexes, and other facilities and provide security, catering, and several other facilities to owners and visitors has witnessed a rise. In June 2020, the Ministry of Tourism announced plans to start a tourism development fund with an initial $4-billion investment. Such factors are expected to promote the growth of the Saudi Arabian facility management market by increasing the demand for such services at the existing and under-construction commercial premises.

Saudi Arabia Facility Management Market Report Coverage
Report Attribute Details
Historical Years 2015-2020
Forecast Years 2021-2030
Base Year (2020) Market Size $31,264.1 Million
Market Size Forecast in 2030 $87,216.0 Million
Forecast Period (2021-2030) CAGR 11.1%
Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Companies’ Strategic Developments, Company Profiling
Market Size by Segments By Service, By End User, By Mode, By Type, By Sector
Secondary Sources and References (Partial List) General Authority of Statistics, International Labour Organization, International Project Management Association, FM EXPO Saudi, Ministry of Commerce & Investment Saudi Arabia, Ministry of Housing, United Nations, World Bank Group, US-Saudi Business Council, International Monetary Fund

 

Large-Scale Projects Being Bagged by Key Players

The Saudi Arabian facility management market comprises a large number of players, such as Muheel Services LLC, Safari Group, APSG Group, AMNCO, EFS Facility Services Group Limited, Khidmah LLC, Enova Facility Management, Musanadah Facilities Management Co. Ltd., Al Borj International, Petrojana, Nesma Trading Co. Ltd., Al Hajry Overseas Co. Ltd., Zahran Holding Company, Initial Saudi Group, FMCO, Jones Lang LaSalle Incorporated, CBRE Group Inc, and Al Yamama Group.

Many of these companies have signed many small contracts for providing services at mega projects, such as Amaala, King Salman Park, and Qiddiya. Additionally, players in the industry have aimed at bagging large-scale projects in order to stay ahead of their competitors. For instance:

  • In August 2020, APSG announced the successful start of a new large-scale project with its strategic client Alrajhi Bank. The project includes the provision of cleaning, maintenance, and hospitality services at more than 150 branches and 612 ATMs of Alrajhi Bank in the southern region of Saudi Arabia.
  • In February 2020, Enova Facility Management and Kinan International Real Estate Development Co. signed a three-year contract for facility management services at 10 malls across Saudi Arabia, which cover a 265,000-square-meter area. Enova stated that it will provide subcontractor work, stock management, mechanical, electrical, and plumbing (MEP) services, and technical services.

Key Players in Saudi Arabia Facility Management Market Include:

  • Muheel Services LLC
  • Safari Group
  • APSG Group
  • AMNCO
  • EFS Facility Services Group Limited
  • Khidmah LLC
  • Enova Facility Management
  • Musanadah Facilities Management Co. Ltd.
  • Al Borj International
  • Petrojana
  • Nesma Trading Co. Ltd.
  • Al Hajry Overseas Co. Ltd.
  • Zahran Holding Company
  • Initial Saudi Group
  • FMCO
  • Jones Lang LaSalle Incorporated
  • CBRE Group Inc.
  • Al Yamama Group

Market Size Breakdown by Segments

The Saudi Arabian facility management market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Service

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

Based on End User

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

Based on Mode

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

Based on Type

  • Hard
  • Soft

Based on Sector

  • Public
    • In-house
    • Outsourced 
  • Private
    • In-house
    • Outsourced
Frequently Asked Questions About This Report
What is the present Saudi Arabian facility management market size?+
Which is the most-widely provided service in the Saudi Arabian facility management industry?+
Why are the end users in the Saudi Arabian facility management market outsourcing the tasks?+
What is the key trend in the Saudi Arabian facility management industry?+
What is the strongest strategic measure in the Saudi Arabian facility management market?+
Place An Order
USD 2500 USD 3500 USD 4500
Customized Report Solution

Get a bespoke market intelligence solution

 
We are committed to ensuring the highest level of client satisfaction
Quality Acknowledgement
Quality Acknowledgement

Our dedication to providing the most-accurate market information has earned us verification by Dun & Bradstreet (D&B). We strive for quality checking of the highest level to enable data-driven decision making for you

Unmatched Standards
Unmatched Standards

Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights

Reach Us
Reach Us Whenever You Need Us

With 24/7 research support, we ensure that the wheels of your business never stop turning. Don’t let time stand in your way. Get all your queries answered with a simple phone call or email, as and when required

Data Security
Complete Data Security

We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws