The rapid growth of the construction sector in Saudi Arabia, rising tourist count, and increasing investments for the development of infrastructure are some 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. Considering such factors, the Saudi Arabian facility management market is expected to generate $87,216.0 million revenue in 2030, advancing at a CAGR of 11.1% during the forecast period (2021–2030).
The market was significantly impacted in 2020 owing to 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 a nationwide lockdown, the demand for facility management services has declined throughout the kingdom.
On the basis of end user, the Saudi Arabian facility management market is categorized into business and corporate, public administration, industry and manufacturing, hospitality, healthcare, construction, education, and others. Amongst these, the business and corporate sector held the largest share in 2020, and it will hold its position throughout the forecast period. This is attributed to the high investments being made by different companies to increase their business in Saudi Arabia.
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 professionals becomes necessary.
Additionally, the Saudi Arabian facility management market is categorized into property, cleaning, security, catering, support, environmental management, and others, on the basis of service. Among these, the property category accounted for the largest share in 2020 owing to the high requirement for the advertisement of leasable properties, as well as asset management and routine maintenance services.
Furthermore, the market has been categorized into in-house and outsourced, on the basis of mode. Of these, outsourced is expected to be the faster-growing category during the forecast period as a result of the rising demand for integrated services, latest technologies, and reductions in operational costs.
The outsourced mode has been further categorized on the basis of type into integrated, bundled, and single. Among these, the bundled category held the largest share in 2020 due to a large number of end users preferring bundled services, as these services can be customized as per requirement.
Players in the Saudi Arabian facility management market are putting a strong focus on winning client deals in order to gain a larger market share. Many companies are focusing on acquiring many contracts at the under-construction mega projects, such as the Red Sea project, Riyadh metro, Diriyah Gate, and Neom.
For instance, in February 2020, Engie Cofely, a division of Engie S.A., acquired two contracts for providing facility management services. The company signed an agreement to provide computer-aided facility management services at King Salman Energy Park (SPARK) and International Maritime Industries (IMI) in the country. The agreement was signed during the Aramco IKTVA Forum and Exhibition 2020.
Additionally, in March 2019, EFS Facilities Services Group signed a contract with Tatweer Buildings Company for providing facility management services for three years. The company’s role as a managing agent would include the provision of services at 2,714 schools across Saudi Arabia, including in the cities of Jeddah, Mecca, and Madinah.
Muheel Services LLC, Safari Group, APSG Group, AMNCO, EFS Facility Services Group Limited, Khidmah LLC, Enova Facility Management, Musanadah Facilities Management Co. Ltd., Al Borj International, Petrojana, Nesma Trading Co. Ltd., Al Hajry Overseas Co. Ltd., Zahran Holding Company, Initial Saudi Group, FMCO, Jones Lang LaSalle Incorporated, CBRE Group Inc., Al Yamama Group are some of the key players operating in the Saudi Arabian facility management market.