U.A.E. 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) – Competition Analysis and Demand Forecast to 2030

Market Overview

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.

Owing to Extreme Climatic Conditions, Property Services Witnessed Highest Demand in 2020

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.

Business and Corporate Category To Demonstrate Fastest Growth due to Rapid Economic Diversification

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-House Mode Held Larger Market Share in 2020 due to Its Convenience to Users

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.

Owing to Their Pivotal Role in Effective Day-to-Day Management, Soft Services Generated Highest Revenue

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.

Private Sector to Dominate Market in 2030 in view of Rising Demand across Corporate Institutions

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.

Increasing Concerns over Health and Hygiene Leading to Demand for Cleaning Services

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.

Growth in Tourism To Help Market Advance

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.

Increasing Construction Projects To Boost Market Demand

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.

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Focus of Market Players on Client Wins

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:

• In January 2021, Farnek Services LLC won four hospitality contracts worth $2.06 million (AED 7.56 million) in Dubai, including the five-star Fairmont Dubai on Sheikh Zayed Lane, the four-star 230-room Revier Hotel in Business Bay, the four-star S Hotel in Al Barsha, and the deluxe Sonder – JBR Suites on The Walk, Jumeirah Beach Residence.
• In September 2020, Emrill Services LLC was awarded a five-year contract by Aramex International LLC. Mechanical, electrical, and plumbing (MEP), housekeeping, and specialist services are all part of the deal, which covers the company's seven facilities in Abu Dhabi and Dubai.

Key Players in U.A.E. Facility Management Market Include:

Market Size Breakdown by Segments

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

• Property
  • HVAC maintenance
  • Mechanical and electrical maintenance
  • Others
• 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