U.A.E. Facility Management Market Overview
Valued at $13,577.4 million in 2018, the U.A.E. facility management market is expected to witness a CAGR of 9.8% during 2019–2024. The increasing need for facility management services in commercial buildings, residential units, and infrastructure and industrial projects is driving the market growth in the country.
The facility management industry is considered one of the most flourishing industries in the U.A.E. at the present time, attributed to the increase in construction activities and the growth in tourism industry of the country. Moreover, investments in the country’s infrastructure and real estate sectors are gaining momentum, owing to the upcoming Dubai Expo 2020. The demand for facility management services has also increased in the country owing to huge infrastructural spending, which is in line with the development goals of the country. These factors are, thus, driving the growth of the U.A.E. facility management market.
On the basis of service, the U.A.E. facility management market is categorized into property, cleaning, security, catering, support, environment management, and other services (including reception, staffing, utility management, furniture supply, and contract management). Among these, environment management services are expected to register the fastest growth in the market, with over 10.0% CAGR during the forecast period. This can be mainly ascribed to the increasing focus on sustainable development and waste management in the country.
The U.A.E. facility management market is also categorized into commercial, industrial, and residential end users. Of these, the commercial end users accounted for the largest market share, of more than 35.0%, in 2018. This can be mainly attributed to the increased demand for facility management services among these users, as these services help them to maintain their assets and, at the same time, allow them to focus on their core competencies to enhance their market competitiveness.
Based on mode, the U.A.E. facility management market is categorized into in-house and outsourced services. Of the two, the in-house facility management service category dominated the U.A.E. market in 2018, accounting for a revenue share of more than 50.0%. The market dominance of in-house services can be imputed to the fact that a large number of companies still have internal teams or professionals for the regular maintenance of the property.
On the basis of type, the U.A.E. facility management market is categorized into hard, soft, and other services (including catering, vehicle fleet management, environmental management, space management, and utility management). Among these, hard services accounted for the largest market share in 2018, owing to the fact that these services are technical in nature and, therefore, carried out by professionals, which also involves a heavy cost. Since most of the hard services are of critical nature and, at the same time, are essentially required by commercial, industrial, and residential establishments, these constitute a significant share in the market.
U.A.E. Facility Management Market Dynamics
The major trend observed in the U.A.E. facility management market is the increasing popularity of integrated services. These include various services offered as a part of a single facility management solution. It is a method of consolidating many services under one contract and management team, which makes the day-to-day operations streamlined and easier to manage, and also ensures workplace productivity and wellness. One of the major benefits of these services for clients is the ability to finetune all the services to focus on core competencies. Hence, instead of contacting various vendors for different facility management activities/services, companies in the U.A.E. are shifting their preference to integrated facility management services.
Increasing investments in the construction sector of the country are expected to drive the U.A.E. facility management market. The construction sector is expected to witness strong growth in the forecast period, as various projects related to the industrial, transport, utilities, and oil and gas industries are in the tender/bidding phases. For instance, around 7,500 building projects worth $228 billion were in concept, design, tender, under construction, or on-hold stages in June 2017 in the U.A.E., which only reflects a healthy and growing construction sector, further suggesting a potential growth in demand for facility management services in the near future.
The inflation rate in the service industry is increasing, which is being viewed a major factor restraining the growth of the U.A.E. facility management market. Managing inflation has become a major challenge for the companies in the country. Moreover, various companies are moving toward cost-cutting measures, which is further posing a challenge in maintaining service quality standards, thus hindering the market growth.
U.A.E. Facility Management Market Competitive Landscape
Some of the major players operating in the U.A.E. facility management industry are Emrill Services LLC, Imdaad LLC, Farnek Services LLC, Cofely Besix Facility Management, Al Shirawi Facilities Management LLC, Etisalat Facilities Management LLC, Transguard Group LLC, Blue Diamond Facilities Management LLC, Reliance Facilities Management, and Deyaar Development PJSC.