The growing tourism industry is driving the demand for facility management services in Kuwait. In order to boost its economy, the government is encouraging private investments in building new attractions, airport capacities, and oil & gas refineries. In addition, the expanding tourism industry has boosted the hospitality industry, which has created a large room for facility management services. Due to these factors, the Kuwait facility management market is expected to generate $2,057.5 million revenue by 2030, advancing at a CAGR of 8.3% during the forecast period (2020–2030).
The market has been significantly impacted owing to the ongoing coronavirus pandemic, primarily due to the restrictions imposed on the inflow of tourists to the country. Furthermore, the increase in public borrowings and rise in unemployment have resulted in a reduction in the consumer spending on these services, which has negatively affected the facility management market in Kuwait.
On the basis of end user, the facility management market of Kuwait is categorized into industrial, commercial, and residential. Among these, commercial end users are expected to hold the largest revenue share during the forecast period due to the increasing need for attractive and clean facilities to attract customers/visitors, which is driving the requirement for property cleaning and maintenance services. Under its economy diversification plan, the country is witnessing large-scale expansion of hotels, commercial centers, malls, and several other spaces, which, in turn, is expected to boost the demand for facility management services in Kuwait.
Further, on the basis of service, the Kuwait facility management market is classified into property, cleaning, security, catering, support, environmental management, and other services. Of these, the property category is expected to lead the market in the coming years, owing to the benefits provided by property management companies such as the usage of advanced software and technology, which reduces the maintenance costs in the long run. This resulted in the rising demand for property management services till 2019, and the situation is expected to remain the same during the forecast period.
On the basis of the type of property services, the Kuwait facility management market is classified into heating, ventilation, and air conditioning (HVAC) maintenance, mechanical & electrical maintenance, and others. Of these, HVAC maintenance services are expected to be the fastest-growing category during the forecast period due to the extreme weather conditions that create a high requirement for the refurbishment and renovation of the existing systems in industrial and commercial buildings, to enhance their efficiency.
Players in the Kuwait facility management market are winning contracts to enhance their market presence. For instance, in January 2020, ENGIE Services Kuwait signed a contract to provide integrated facility management services at Taiba Hospital.
Some of the major players operating in the Kuwait facility management market are Kharafi National for Infrastructure Projects Developments Construction and Services S.A.E, O&G Engineering W.L.L., Fawaz Trading & Engineering Services Co. W.L.L., EcovertFM Kuwait, Al Mazaya Holding Company, Al-Awsat United Real Estate Co., R&E Petroleum Co., Refrigeration Industries and Storage Company, PIMCO, and United Facilities Management.