Published: July 2020 | Report Code: PE11352 | Available Format: PDF | Pages: 104
The U.A.E. facility management market size stood at $14,949.9 million in 2019, and it is expected to demonstrate a CAGR of 9.3% during the forecast period (2020–2030). The increase in the investments in the construction sector, along with the growth of the tourism sector in the country, is the major factor propelling the U.A.E. facility management industry.
The ongoing coronavirus (COVID-19) pandemic has created a significant impact on the industry, on account of the countrywide lockdown since early April. This has led to the shutting down of commercial spaces, including malls, shopping complexes, and offices, along with restrictions on gathering at mosques, which, in turn, has reduced the requirement for facility maintenance services in such areas. However, with the lifting of travel restrictions, in order to support the tourism sector, the tourist hotspots have begun preparations to receive visitors.
In 2019, the property services category held the largest share in the U.A.E. facility management market, on the basis of service. This is majorly ascribed to the increasing customer need for integrated services for property management. The country is witnessing massive growth in its construction industry, particularly in Dubai and Abu Dhabi, which is creating a huge demand for property management services. This, in turn, is serving as a growth factor for the U.A.E. facility management market.
The property category is further sub-categorized into heating, ventilation, and air conditioning (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, owing to which air conditioning is widely required at hotels, commercial offices, residential buildings, and manufacturing facilities. With the increase in the construction activities in the country, the requirement for HVAC maintenance is expected to surge in the coming years, in turn, promoting the growth of the U.A.E. facility management market.
The commercial category is expected to showcase the fastest growth in the U.A.E. facility management market during the forecast period, on the basis of end user. Facility management services enable commercial operators to focus on their core competencies; therefore, the outsourcing of such services is highly preferred in the commercial sector. Additionally, with the investments in the commercial sector of the country, the U.A.E. facility management market is expected to witness profound growth in this category in the coming years.
In 2019, the in-house bifurcation held the larger share, on the basis of mode, in the U.A.E. facility management market. Operators in the country are primarily relying on in-house services for the management of assets and other services, such as cleaning, catering, and security. In-house services have witnessed a higher preference in the country in the past few years, owing to the convenience they provide to users.
The outsourced mode has been further subcategorized into integrated, bundled, and single. Among these, the integrated category held the largest share in 2019. With a large number of commercial and manufacturing facilities wanting to retain their focus on core operations, facility management services are increasingly being outsourced to integrated service providers, who offer a comprehensive set of services to such clients. Such factors are expected to promote the growth of the U.A.E. facility management market.
Hard services generated the highest revenue in 2019 on the basis of type. Manufacturing companies are among the most prominent users of hard services, as they require technical expertise to effectively run their facilities. Hard services generally require a high level of technical know-how, which makes them relatively expensive, compared to soft services, thereby increasing their overall revenue contribution to the U.A.E. facility management market.
The market in the country is expected to witness strong growth, with increasing investments in the infrastructure and real estate sector of the country, along with strong support from the government. The U.A.E. government is implementing a strong focus on reducing its dependence on the oil & gas industry, therefore promoting the tourism and construction sectors. Additionally, the emergence of new technologies is expected to benefit the U.A.E. facility management industry.
With the launch of cutting-edge technologies, such as building information modeling (BIM), advanced HVAC, and automated facility management software, and integration of such technologies with facility management services, companies are likely to deliver improved services. This, in turn, is expected to attract more companies to the facility management sector, thereby propelling the growth of the U.A.E. facility management market.
Lately, there has been a spur in the demand for disinfection services, on account of the ongoing COVID-19 pandemic, especially from manufacturing plants and warehouses. 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. This, in turn, is expected to aid the growth of the U.A.E. facility management market in the coming years.
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, with the rise in foreign direct investments, footfall of travelers, and gross domestic product (GDP). As per the request of the U.A.E. government, Bureau International des Expositions has voted to postpone Dubai World Expo 2020 to 2021, owing to the COVID-19 pandemic. This resulted in a drop in GDP, tourist footfall, and job opportunities during the second quarter of 2020.
Nevertheless, with immense support from the government for the tourism sector, travel restrictions have been lifted, in order to support the economy. Additionally, the market holds a high potential for growth, due to the requirement for security services, disinfection services, safety services, and environmental management services in commercial complexes, tourist attractions, and hotels. Such factors are expected to drive the growth of the U.A.E facility management market during the forecast period.
|Base Year (2019) Market Size||$14,949.9 million|
|Forecast Period (2020-2030) CAGR||9.3%|
|Report Coverage||Market trends, Porters five forces analysis, revenue estimation and forecast, segmentation analysis, competitive analysis, companies’ strategic developments, competitive benchmarking, company profiling|
|Market Size by Segments||Service, end user, mode, type, end user capacity, workforce analysis|
|Secondary Sources and References (Partial List)||Association for Gulf and Arabian Peninsula Studies, Dubai Chamber of Commerce and Industry, Dubai Statistics Center, Gulf Cooperation Council, International Monetary Fund, MEED Projects|
The construction industry is expected to witness strong growth in the coming years, owing to the various projects related to the urban, industrial, transport, utilities, and oil & gas industries in the tender/bidding phase. Around 4,000 projects, worth $313.2 billion, are underway in Dubai, and the industry trends are 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, Container Terminal 4 (Jebel Ali Port) expansion project, and Royal Atlantis Resort and Residences located on Palm Jumeirah expansion.
The operators of such projects are expected to look for companies to manage these facilities, in turn, driving the U.A.E. facility management market.
The U.A.E. facility management market has the presence of several players, which include Emrill Services LLC, Imdaad LLC, Engie Cofely, Transguard Group LLC, and Farnek Services LLC.
These players are implementing a strong focus on winning client projects, in order to enhance their market share. For instance:
The U.A.E. facility management market offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Service
Based on End User
Based on Mode
Based on Type
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