U.A.E. Facility Management Market Overview
The U.A.E. facility management market is estimated to attain a size of $13,577.4 million in 2018 and is projected to reach $23,882.3 million by 2024, witnessing a CAGR of 9.8% during 2019-2024. The growing application of facility management in commercial buildings, residential construction projects, infrastructure projects, and industrial projects is driving the growth of the facility management market in the country.
The facility management industry in the U.A.E. is considered as one of the most flourishing industries in recent times, attributed to the increase in construction activities and the growing tourism industry. Investment in the country’s infrastructure and real estate sector is gaining momentum in recent years owing to the upcoming Dubai expo 2020. There is already an upright demand of facility management in the U.A.E., attributed to the huge infrastructural spending, which is in line with the development goals of the country. These factors are driving the growth of the facility management market in the country.
On the basis of service, the U.A.E. facility management market is segmented into property services, cleaning services, security services, catering services, support services, environment management services, and other services (including reception, staffing, utility management, furniture supplies, and contract management). Property services are further categorised HVAC maintenance, mechanical and electrical maintenance, and others (including sales and leasing, maintaining properties, advertise rental properties, space planning and design, asset management). Property, cleaning, and security are the three most preferred services among end users in U.A.E. Among these three, cleaning services are expected to register the fastest growth in the facility management market, during the forecast period.
Based on end user, the U.A.E. facility management market is categorised into commercial, industrial, and residential. Commercial sector is estimated to account for the largest share in the market contributing for more than 35.0% in 2018, attributed to the advantages it offers to commercial users to maintain focus on their core competencies to enhance their competitiveness in the market and also, maintain their assets at the same time.
Based on mode, the U.A.E. facility management market is categorised into in-house and outsourced. Outsourced market is further categorised into integrated, bundled, and single. In-house facility management service is estimated to dominate the U.A.E. market in 2018 as it accounted for a revenue share of more than 55.0%. The dominance of in-house services is driven by the fact that a large number of companies still operate internal facility management team or professionals which take care of regular maintenance of the property.
Based on type, the U.A.E. facility management market is categorised into hard services, soft services, and others (including catering services, vehicle fleet management, environmental management, space management, and utility management). Hard services is estimated to account for the largest share in the U.A.E. facility management market in 2018 driven by the fact that these services are technical in nature which are considered expensive. Moreover, certain hard services such as HVAC maintenance services, mechanical services, and lift management services are of critical nature which is essentially required by commercial, industrial or residential units.
U.A.E. Facility Management Market Dynamics
Growing focus on management of facilities and shifting focus on integrated facility management are the key trends observed in the U.A.E. facility management market.
The major trend observed in the facility management market is the growing focus of end users of these services. The growing property market, a fast expanding hospitality sector, growing mergers and acquisitions in the industry, and adoption of more advanced technology is resulting in increased demand of these services. The increasing demand of real estate has generated the need of more construction projects in the country, and is leading to increase in the demand of these services. Also, increasing merger and acquisition activities amongst the market players are broadening their facility service portfolio and helping them to serve customers in a better way, which is creating opportunities for the market to grow.
Increasing investment in the construction sector of the country is expected to drive the growth of the facility management market in the U.A.E. The construction industry is expected to witness a strong growth in the coming years, owing to the various construction projects in tender/bidding phases related to urban, industrial, transport, utilities, and oil and gas industries. For instance, around 7,500 building projects worth of $228 billion were in concept, design, tender, under construction, and on hold stages by June 2017 in the U.A.E., which only reflects a healthy and growing construction sector.
The inflation rate for service industry has been increasing globally, which is posing a major restraint for the facility management market. Managing inflation for a healthy growth is a major restraint that companies are facing. A consolidated strategy can help in safeguarding cost alignment and ensure sustainable service quality standards. Various companies are moving toward cost-cutting measures, which poses further challenges in maintaining service quality standards.
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.