Published: April 2021 | Report Code: PE11352 | Available Format: PDF | Pages: 129
The U.A.E. facility management market was valued at $14,360.2 million in 2020 and is expected to demonstrate a CAGR of 10.8% during the forecast period (2021–2030). The increase in investments in the construction sector and the growth in the tourism sector of the country are some of the major factors propelling the U.A.E. facility management industry. Moreover, the country is witnessing an increasing use of advanced technologies, such as artificial intelligence, robotics, and infrared/thermal scanning, in facility management market.
The COVID-19 pandemic has resulted in a significant impact on the industry, on account of the countrywide lockdown and other stringent measures taken by the government to curb the spread of the disease. However, with the lifting of travel restrictions, the tourism sector in the country is expected to recover, which would positively impact the facility management market in the U.A.E.
In 2020, property services held the largest revenue share in the U.A.E. facility management market, on the basis of service. This can be majorly ascribed to the increasing demand for integrated heating, ventilation, and air conditioning (HVAC) maintenance services in addition to mechanical and electrical maintenance services from industrial and commercial facilities in the country. Moreover, the country has witnessed massive growth in its construction industry in recent years, particularly in Dubai and Abu Dhabi, which, in turn, has resulted in a huge demand for property services, thereby serving as a growth factor for the U.A.E. facility management market.
The market for property services has further been categorized into HVAC maintenance, mechanical and electrical maintenance, and others, based on type. Among these, the HVAC maintenance category is expected to demonstrate the fastest growth during the forecast period, on account of the extremely hot weather conditions in the country. Since air conditioning is widely required in commercial offices, hotels, residential buildings, and manufacturing facilities, the demand for these services continues to rise in the U.A.E. facility management market.
The business and corporate category is expected to showcase the fastest growth in the U.A.E. facility management market between 2021 and 2030, on the basis of end user. This is due to increasing investments in the corporate sector by the government for the economic diversification of the country. Moreover, the corporate sector requires facility management services to ensure its smooth operations. This factor is pushing the facility management market growth in this category.
In 2020, the in-house bifurcation held the larger share, on the basis of mode, in the U.A.E. facility management market. End users in the country primarily rely on in-house services for the management of assets and other services, such as cleaning, catering, and security. In-house services have been witnessing higher preference in the country, owing to the convenience they provide to the end users.
The outsourced mode has further been categorized into integrated, bundled, and single. Among these, the integrated category held the largest market share in 2020. With a large number of commercial and manufacturing facilities focusing on core operations, facility management services are increasingly being outsourced to integrated service providers who offer a comprehensive set of services to their clients. Such factors are expected to promote the growth of the U.A.E. facility management market.
Soft services generated the highest revenue in the market in 2020, on the basis of type. Commercial and residential buildings require soft services in order to manage their day-to-day operations more effectively. The constant need for these services has, thus, led to their highest revenue contribution to the U.A.E. facility management market.
The U.A.E. facility management market has also been categorized into public and private sectors, of which the private sector is expected to dominate the market in 2030. This can be mainly attributed to the surging demand for facility management services among private businesses and corporate institutions, such as healthcare facilities and educational institutions.
Of late, there has been a spur in the demand for cleaning services, primarily disinfection services, from manufacturing units, warehouses, residential complexes, hospitals, offices, and other public institutions in the wake of the COVID-19 pandemic. According to industry experts, the demand for cleaning services grew a hundredfold within a month, from 10 appointments in February to 1,000 appointments in March 2020, and has been doubling on a daily basis since then. This rise in the demand for cleaning services is majorly due to the COVID-19 outbreak, which has made people more hygiene-conscious. This can be viewed as one of the key trends observed in the U.A.E. facility management market.
The growth in the U.A.E.’s tourism industry is expected to play a vital role in driving the country’s facility management market, especially with the expected rise in foreign direct investments, tourist inflow, and gross domestic product (GDP) in view of the upcoming world expo in Dubai. Although on the request of the U.A.E. government, the Bureau International des Expositions has voted to postpone Expo 2020 Dubai to 2021 in the wake of the COVID-19 pandemic, the event is expected to create immense opportunities for the tourism sector when it is rescheduled.
Moreover, in the coming years, the tourism industry in the country is expected to boost on account of the growing support from the government and the growing demand for security services, disinfection services, safety services, and environmental management services in tourist attractions and hotels. Such factors are expected to drive the growth of the facility management market in the country during the forecast period.
The construction industry is expected to witness strong growth in the coming years, with various projects in the tender/bidding phase. Around 4,000 projects, worth $313.2 billion, are underway in Dubai, and the industry trend is expected to remain upbeat through 2021. Some of Dubai's current mega projects are the Dubai Metro Red Line extension, which is part of the Expo 2021 preparations, the Container Terminal 4 (Jebel Ali Port) expansion project, and Royal Atlantis Resort and Residences (Palm Jumeirah). Such projects are expected to generate a high demand for facility management services, which, in turn, would drive the U.A.E. facility management market.
|Base Year (2020) Market Size||$14,360.2 Million|
|Market Size Forecast in 2030||$39,680.8 Million|
|Forecast Period CAGR||10.8%|
|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)||Association for Gulf and Arabian Peninsula Studies, Dubai Chamber of Commerce and Industry, Dubai Real Estate Institute, Dubai Statistics Center, Emirates Real Estate Association, Global Facility Management Association, Gulf Cooperation Council, Department of Economic Studies and Policies, Ministry of Economy, U.A.E., World Bank, World Travel and Tourism Council|
Numerous players are operating in the U.A.E. facility management market, including Emrill Services LLC, Imdaad LLC, Engie Cofely, Transguard Group LLC, Farnek Services LLC, Blue Diamond Facilities Management LLC, Reliance Facilities Management, Deyaar Development PJSC, Al Shirawi Facilities Management LLC, AG Facilities Solution LLC, EFS Facilities Services Group Limited, Tafawuq Facility Management LLC, Adeeb Electrical & Electronic Services Co. LLC, and Ejadah Asset Management Group LLC.
Many of these companies are providing their services for the ongoing mega projects in the country, including Yas Bay, Al Qana, the Museum of the Future, Ikea Al Wahda, Burj Jumeirah, Dubai Creek Tower, Hyperloop, Mohammed Bin Rashid Library, and Heart of Sharjah.
Moreover, these players have been focusing on winning facility management contracts in order to enhance their market share. For instance:
The U.A.E. facility management market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.
Based on Service
Based on End User
Based on Mode
Based on Type
Based on Sector
In 2030, the value of the U.A.E. facility management market will be $39,680.8 million.
The U.A.E. facility management market is expected to grow at a CAGR of 10.8% during the forecast period (2021–2030).
Property is the largest category under the service segment of the U.A.E. facility management industry.
The major U.A.E. facility management market drivers are growing tourism industry and increasing investments in the construction sector.
Most U.A.E. facility management market players are focusing on client wins to sustain their business growth.
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