The Saudi Arabian facility management market size is expected to advance at a CAGR of 11.2% during 2022–2030, to reach $87,248.7 million by 2030.
The rapid growth of the construction sector in Saudi Arabia, due to the rise in the tourist count and increase in investments, is one of the major factors promoting the growth of the facility management market in the kingdom. Other trends such as heating ventilation, and air conditioning (HVAC) optimization, energy monitoring, and usage of robots are also boosting the demand for facility management services in Saudi Arabia.
The market saw a major recession in 2020 on account of the coronavirus pandemic, primarily due to the restrictions imposed on the traveling of pilgrims, which directly impacted the revenue generated by the tourism sector. With the restrictions on travel, as well as the imposition of nationwide lockdowns, the demand for facility management services declined throughout the kingdom.
The corporate and business sector is estimated to hold the largest share, around 35%, in 2022, and it is expected to hold its position throughout the forecast period. This is attributed to the high investments being made by different companies to increase their business in the country.
Moreover, the support from the government to expand the business and corporate sector is helping in the growth of the market. Business and corporate spaces require property accounting, renting, contract management, procurement management, and several other services, owing to which the hiring of associated professionals becomes necessary.
The growing travel and tourism industry is one of the major growth drivers for the Saudi Arabian facility management market. According to the World Travel & Tourism Council, the contribution of the travel and tourism sector to Saudi Arabia's GDP was 9.7% (SAR 291.6 billion) in 2019.
Moreover, Saudi Arabia’s travel & tourism sector's contribution to the national economy could surpass pre-pandemic levels, rising by 2% from the 2019 value and reaching nearly SAR 297 billion by 2023.
Further, by 2030, Saudi Arabia expects to host more than 100 million tourists annually. This is majorly attributed to the presence of several World Heritage Sites and religious destinations, such as Makkah and Medina; and the growth in leisure tourism in the country. To further improve its tourism industry, the prince had announced The Red Sea tourism project in 2017. Under this, a resort will be built across a lagoon and 50 pristine islands, in partnership with various hospitality firms. The first phase of the project, including hotels, luxury residential units, and logistics infrastructure, was expected to be completed by the end of 2022. Such large-scale real estate development projects will strengthen the need for facility management services, to maintain the properties.
The Saudi Arabian facility management market is majorly dominated by Muheel Services LLC, Safari Group, APSG Group, EFS Facilities Services Group, Khidmah Sole Proprietorship LLC, Musanadah Facilities Management Company, Nesma Trading Co. Ltd., Al Borj International, and Petrojana.