The growing travel & tourism industry in GCC countries, due to the support provided by governments, is the key factor positively impacting the demand for facility management services in Gulf Cooperation Council (GCC) member nations. For instance, according to Gulf Business, Dubai welcomed 16.7 million tourists in 2019, 5.1% more than the previous year. In addition, Oman recorded a 24.3% rise in the number of visitors in 2019 compared to 2018. Due to these factors, the GCC facility management market is expected to generate $137,297.8 million in 2030, advancing at a CAGR of 10.1% during 2020–2030 (forecast period).
The COVID-19 pandemic has created a negative impact on the facility management market. This is due to the economic slowdown that led to the deferment of existing pipeline projects, which had a significant impact on the revenue growth rate in 2020. Furthermore, the idle manpower due to the scaling down of business operations, supply chain disruptions, high health and safety concerns of employees, high cost allocation for safety and wellbeing, and cost escalations due to the high spending on quarantining and isolation services have negatively impacted the facility management industry.
On the basis of end user, the GCC facility management market is classified into commercial, industrial, and residential. Among these, the commercial category held the largest market share in 2019 due to the rising investment in commercial real estate. In 2016, the National Transformation Program (NTP) 2020 was initiated to meet the objectives of the Saudi Vision 2030. Under it, a huge investment is being made for the development of the private sector, which, in turn, is expected to attract a large number of facility management service providers in the country.
Further, on the basis of mode, the GCC facility management market is bifurcated into in-house and outsourced services, of which outsourced services are expected to be the faster-growing bifurcation during the forecast period. This growth would be due to their increasing provisioning in the healthcare, banking, and financial services sectors. The ability of external firms to provide satisfactory services to end users is expected to drive the market for outsourced facility management services in GCC countries in the coming years.
Geographically, the facility management market in Saudi Arabia is expected to witness lucrative growth as a consequence of the upcoming real estate projects in the country, including Al Widyan by 2020, Amaala, by 2028, and the Red Sea Project by 2030. These projects are expected to offer immense growth potential to the country’s facility management market. To enter the market and serve customers in an efficient manner, global companies are increasingly joining hands with domestic companies. Moreover, the increasing awareness about the advantages of facility management and outsourcing these services is further fueling the market growth.
Players in the GCC facility Management market are signing agreements with facility owners to enhance their market presence. For instance, in June 2020, CBM Qatar LLC secured two facility management contracts from the Al Kaabi Tower located on Al Aaliya Street in Doha and the Embassy of the Republic of Singapore in Doha. As per the contracts, the company will provide cleaning, security, and mechanical, electrical, & plumbing (MEP) services for two years at the properties mentioned.
Similarly, in January 2020, Darwish Interserve Facility Management W.L.L. secured a three-year contract from the Qatar Civil Aviation Authority to provide integrated facility management services, such as cleaning and MEP services, at the Qatar Air Traffic Control Centre (QATCC).
Major players operating in the GCC facility management market include EMCOR Group Inc., Khidmah LLC, Interserve plc, Musanadah Facilities Management Co. Ltd., Engie Cofely, Kharafi National for Infrastructure Projects Developments Construction and Services S.A.E., United Facilities Management, Emrill Services LLC, Imdaad LLC, and Farnek Services LLC.