Find out what is driving the need for more FM services in Saudi Arabia

by Brianna Crandall — January 5, 2018 — A new report from Ken Research titled Saudi Arabia Facilities Management Market Outlook to 2021 — Growth in Infrastructural Projects to Foster Demand for Facilities Management Services provides a comprehensive analysis on the “soft” and “hard” facilities management (FM) market in the Kingdom of Saudi Arabia.

The Saudi FM market is projected to reach $39.58 billion by 2022. Growing investments by public as well as private entities for improving the country’s infrastructure, an increase in the number of green buildings, and a booming construction market are some of the major factors aiding growth. An increasing number of mergers and acquisitions and a growing influx of international players are expected to positively influence the market during the forecast period.

The report provides information on the Saudi regulatory landscape, trends and developments in the dynamic FM market as well as issues and challenges, vendor selection criteria, competitive landscape, company profiles, future analysis by segments, a list of major projects in the pipeline, and analyst recommendations. The report serves as a benchmark for every new player seeking to enter into the facilities management market in Saudi Arabia, according to Ken Research.

Saudi Arabia facilities management market

The Saudi FM market has witnessed robust growth in the past few years. The country’s growing infrastructure industry and booming hospitality sector have brought a surge in demand for facilities management services in the country. An increase in project activity centered on tourism, the construction of resorts, hotels and budget hotel chains in the Kingdom has raised the demand for soft and hard services in the country. In addition, the growing real estate market in Saudi Arabia has increased the number of residential and commercial units, resulting in the rising demand for FM services, especially housekeeping services.

Market segmentation

By hard services and soft services: The Saudi FM market can be segmented on the basis of types of services offered. “Hard” services refer to services required to maintain, repair and replace mechanical and electrical systems and equipment, including heating, ventilation and air-conditioning (HVAC), gas and water systems, and their control systems and appliances. “Soft” services refer to catering, hospitality, janitorial and housekeeping, pest control, waste management, reception, concierge, fleet management, car park management and security services, among others.

Hard services dominated the Saudi FM market. Increased construction coupled with new green and energy-efficient concepts in the design of shopping centers, hospitals, airports and others has led to a surge in the demand of HVAC, operations and maintenance services, electromechanical services and fire safety and security systems, further impacting the FM market positively.

By integrated service, single services and bundled services: The facilities management market is also segmented on the basis of integrated services, single services and bundled services. Integrated services was the largest contributor in the industry in 2016, with single services and then bundled services following. Companies opt for integrated services in order to limit complexity by reducing the number of service suppliers, maintaining a single point of contact and establishing financial certainty for customers.

By sectors: The residential sector was in lead in terms of revenue generation in 2016, with growth stemming from the government’s construction initiative following the Arab Spring in 2011. The commercial sector followed, then the hospitality sector, oil and gas, logistics, education and others.

Major players in the Saudi Arabia facilities management industry

The Saudi FM market is fragmented, with many players operating in this industry. It has attracted various international players over the years due to its high potential, such as OCS Arabia, Cushman & Wakefield, JLL, Atkins and others.

The market has been elevated owing to the rising awareness and demand of the FM market. The industry is largely dominated by giants such as Saudi Oger, Almajal G4S, Zamil, Samama, Nesma Trading and others.

Facilities management market will grow at a healthy rate in coming future. The facilities management market in Saudi Arabia is highly fragmented and nascent. This will give immense opportunity to the global and local players to tap the market with technology advancements in the FM industry. Growing hospitality industry in the country is expected to trigger the demand for HVAC services, security, cleaning, housekeeping and other facilities management services.

Future potential

The Saudi FM market is expected to grow at a healthy rate in the future. The industry is highly fragmented and nascent, giving immense opportunity to global and local players to tap the market with technology advancements.

The growing hospitality industry, retail and construction industry for residential and commercial units, and a rise in various industries such as tourism, IT and others are expected to impact the market in positive manner.

The Saudi Arabia Facilities Management Market Outlook to 2021 — Growth in Infrastructural Projects to Foster Demand for Facilities Management Services is available from Ken Research, Report Buyer or Research and Markets.