Saudi Arabia Facility Management Market Overview, 2029

Saudi Arabia Facility Management Market Overview, 2029

Facility management in Saudi Arabia is a blooming field that is growing and evolving at a faster rate than in more established economies. This shift is primarily driven by factors such as increased urbanisation and a concentrated effort to maximise efficiency. As the country pursues modernization and economic diversification under Vision 2030, there is a greater emphasis on infrastructure development and maintenance. This emphasis has resulted in an increase in demand for facility management services to assist with the design, building, and operation of diverse projects. In comparison to established economies, Saudi Arabia's market is currently expanding rapidly; yet, it still lags behind in terms of market maturity and service offerings. Nonetheless, when compared to regional peers like the UAE and Qatar, Saudi Arabia has a clear edge due to its higher market potential. This potential is primarily due to the size of the Saudi market and ongoing infrastructure initiatives that are strengthening the country's economic landscape. Companies have established themselves as industry leaders, relying on their knowledge and ability to provide high-quality services. Furthermore, the industry is seeing the arrival of new competitors, both domestic and international, who are attracted by the potential development prospects. This inflow of new entrants adds energy to the market, encouraging rivalry and innovation as businesses compete for market share and relevance.

According to the research report “Saudi Arabia Facility Management Market Research Report, 2029,"" published by Actual Market Research, the Saudi Arabia Facility Management market was valued more than USD 500 Million in 2023. One of the primary reasons driving the rise of facility management in Saudi Arabia is the infrastructure boom fueled by Vision 2030. The ambitious national transformation program has sparked various large-scale infrastructure projects around the country, ranging from transportation networks to industrial complexes. These projects necessitate thorough facility management to ensure their smooth operation and durability, resulting in increased demand for integrated service providers. Furthermore, Saudi Arabia's strategic focus on tourist development is driving significant growth in facility management services. The rising tourism industry has resulted in the creation of hotels, resorts, entertainment venues, and other amenities to accommodate the growing number of visitors. Effective facility management is critical to ensuring the quality and functionality of these facilities, which improves the overall tourism experience and supports the sector's growth trajectory. Another important aspect influencing the landscape of facility management in Saudi Arabia is the increased emphasis on sustainability. With increased environmental awareness and a global trend toward environmentally friendly practices, there is a growing demand for green facility management solutions. This involves efforts to reduce energy consumption, waste, and improve the environmental performance of buildings and infrastructure. As sustainability becomes a more important concern in development projects, facility management companies are under increasing pressure to include environmentally responsible practices into their services.

The facilities management (FM) industry caters to a diverse range of enterprises, offering solutions and services tailored to their specific needs. Enterprises are typically categorised based on size, with large corporations characterised by extensive resources and operations, while small and medium-sized enterprises (SMEs) operate on a smaller scale. Within various industry verticals, FM services play a crucial role in supporting businesses across different sectors. In the Banking, Financial Services, and Insurance (BFSI) sector, FM ensures the smooth functioning of banking operations and financial institutions. In Healthcare & Life Sciences, FM contributes to maintaining the efficiency and safety of healthcare facilities and research laboratories. The IT & Telecom industry relies on FM for the management of office spaces, data centres, and telecommunications infrastructure. Similarly, the Construction & Real Estate sector depends on FM for the maintenance and upkeep of buildings, facilities, and infrastructure projects. FM services also play vital roles in Retail & Manufacturing, Government & Public Sector, Education, Travel & Hospitality, and other industries, ensuring operational efficiency, compliance with regulations, and the overall well-being of occupants and users. By catering to enterprises of all sizes and addressing the diverse needs of various industry verticals, the FM industry plays a crucial role in supporting the functioning and growth of businesses across different sectors.

Despite the strong growth possibilities, the facility management sector in Saudi Arabia has a number of issues that require attention. One of the most significant issues is market fragmentation, which is defined by the presence of multiple small-scale service providers alongside big integrated businesses. This fragmentation can result in inconsistent service quality and pricing, providing issues for both clients and industry stakeholders. Efforts to streamline the market and encourage provider collaboration could help alleviate this issue. Furthermore, a lack of experienced facility management specialists poses a considerable barrier to sectoral growth and development. As the need for specialised expertise grows, there is an urgent need for training and development activities to create a qualified workforce. Investing in education, certification programs, and vocational training can help to close the skills gap and assure the availability of qualified individuals to fulfil industry demands. Furthermore, the lack of standardised methods and clear legal frameworks presents issues for players in the facility management industry. Inconsistencies in service standards and regulatory ambiguity can lead to uncertainty and reduce operational efficiency. Establishing strong rules and regulations for facility management procedures can improve transparency, encourage fair competition, and develop confidence among both clients and service providers. Collaboration between industry players and regulatory agencies is critical to addressing these difficulties and creating an environment suitable to long-term growth and innovation in Saudi Arabia's facility management sector.

The government is actively promoting localization of the facilities management industry, encouraging domestic involvement. Initiatives are also ongoing to provide explicit norms and certifications to assure service quality. These measures aim to foster a thriving environment for domestic players while maintaining high levels of service delivery. The government hopes to support growth in the facility management sector while protecting consumer interests by promoting a regulatory framework that prioritises localization and quality. The advent of the Covid-19 outbreak presented considerable hurdles to Saudi Arabia's facility management sector. Lockdowns and economic slowdowns hampered routine corporate operations, creating market uncertainty. Despite these problems, there was a noticeable shift in service priorities, with increased demand for hygiene and sanitation services. This spike in demand not only forced changes to service offerings, but it also created new chances for businesses to meet changing consumer expectations. As the economy progressively recovers from the pandemic's effects, the long-term prospects for Saudi Arabia's facilities management sector remain good. The increased emphasis on cleanliness and sanitation is projected to continue, resulting in continuous growth and innovation in the business.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Facility Management market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Component
• Solutions
• Services

By Solution
• Integrated Workplace Management System (IWMS)
• Building Information Modelling
• Facility Operations & Security Management
• Facility Environment Management
• Facility Property Management

By Service
• Professional Services
• Managed Services

By Enterprise size
• Large enterprises
• SMES

By Vertical
• Banking, Financial Services, & Insurance (BFSI)
• Healthcare & Life Sciences
• IT & Telecom
• Construction & Real Estate
• Retail & manufacture
• Government & Public Sector
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Facility Management industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Facility Management market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Component
• Solutions
• Services

By Solution
• Integrated Workplace Management System (IWMS)
• Building Information Modelling
• Facility Operations & Security Management
• Facility Environment Management
• Facility Property Management

By Service
• Professional Services
• Managed Services

By Enterprise size
• Large enterprises
• SMES

By Vertical
• Banking, Financial Services, & Insurance (BFSI)
• Healthcare & Life Sciences
• IT & Telecom
• Construction & Real Estate
• Retail & manufacture
• Government & Public Sector
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Facility Management industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.