Saudi Arabia Facility Management Market Assessment, By Type [Hard Services-Plumbing, Electrical Works, Maintenance and Repair, Others; Soft Services-Security and Safety, Catering, Cleaning, Others], By Service Model [Insourced, Outsourced], By Industry Ty

Saudi Arabia Facility Management Market Assessment, By Type [Hard Services-Plumbing, Electrical Works, Maintenance and Repair, Others; Soft Services-Security and Safety, Catering, Cleaning, Others], By Service Model [Insourced, Outsourced], By Industry Type [Organised, Unorganised], By Sector [Education, Healthcare, Real Estate, Banking, Hospitality, Housing, Others], By End-user [Commercial, Residential, Industrial, Public], By Region, Opportunities and Forecast, 2016-2030F

Saudi Arabia Facility Management Market size was valued at USD 25.36 billion in 2022 and is expected to reach USD 54.76 billion in 2030 with a CAGR of 10.1% for the forecast period between 2023 and 2030. The Facility Management (FM) market in Saudi Arabia has witnessed significant growth driven by various factors. The country's ambitious Vision 2030 initiative, which aims at diversifying the economy and reducing dependence on oil, has increased infrastructure development and urbanization, thereby boosting demand for FM services. This drive towards creating world-class cities has fostered the need for efficient and sustainable management of facilities, further propelling the FM market. Moreover, the growing emphasis on optimizing operational costs and enhancing resource utilization has pushed businesses to outsource their facility management functions, thereby driving the demand for specialized FM services. The market is also influenced by technological advancements, including integrating Internet of Things (IoT) devices and smart building solutions, enabling remote monitoring and real-time data analysis for improved efficiency and decision-making.

The COVID-19 pandemic has also underscored the importance of health, safety, and hygiene within facilities, leading to a heightened focus on maintaining clean and sanitized environments. This trend has prompted FM providers to adopt innovative cleaning and disinfection methods and implement touchless technologies to ensure the well-being of occupants. Recent Saudi Arabian FM market developments include adopting sustainable practices to align with global environmental standards and regulations. Green building initiatives and energy-efficient solutions are gaining traction, driven by government mandates and the corporate sector's growing commitment to sustainability. As the market continues to evolve, collaborations between FM companies and technology providers are anticipated to flourish, resulting in the seamless integration of advanced technologies and solutions that redefine the landscape of facility management in Saudi Arabia.

For example, in 2023, UEM Edgenta Berhad, a prominent company specializing in Asset Management and Infrastructure Solutions in the region, revealed the successful conclusion of a deal involving its fully owned subsidiary, Edgenta Arabia Limited (EAL). The transaction involved partnering with Mohammed I. Alsubeaei & Sons Investment Company (MASIC) to acquire a 60% equity share in MEEM for Facilities Management Company (MEEM) and provide capital for its growth. This achievement was realized after meeting the necessary local regulatory approvals and fulfilling the conditions specified in the definitive agreements.

Emphasis on Green and Sustainable Building Practices

The Saudi Arabia Facility Management Market is placing a pronounced emphasis on green and sustainable building practices. As part of the country's commitment to environmental preservation and in alignment with global sustainability trends, there is a growing demand for facility management solutions that prioritize energy efficiency, resource conservation, and reduced carbon footprint. Green building initiatives, encompassing energy-efficient systems, water conservation strategies, and eco-friendly materials, are gaining prominence.

Both governmental regulations and corporate initiatives are driving the integration of sustainable practices into facility management strategies to comply with environmental standards and enhance operational efficiency, reduce operating costs, and create healthier indoor environments for occupants. This focus on sustainable approaches is reshaping the landscape of facility management in Saudi Arabia, contributing to a more environmentally conscious and future-ready built environment. For example, in August 2023, signaling a significant effort to promote the sustainable advancement of real estate ventures in Saudi Arabia, the nation's sovereign wealth fund introduced establishing a fresh facilities management enterprise.

Growing Attention to Outsourcing

There has been growing attention to outsourcing for facility management in Saudi Arabia. This trend is driven by several factors, including the desire of companies to focus on their core business activities and to reduce costs. One of the primary benefits of outsourcing facility management services is that it allows companies to transfer the responsibility for managing their facilities to a specialized third-party provider. This can result in improved service levels, reduced costs and increased efficiency. Another factor driving the trend toward outsourcing in Saudi Arabia is the country's growing economy and the resulting demand for high-quality facilities.

Infrastructure Development and Growing Real Estate Sector

The Facility Management Market in Saudi Arabia is experiencing substantial growth due to robust infrastructure development and a burgeoning real estate sector. The country's ambitious initiatives, such as Vision 2030, are propelling the construction of various infrastructure projects and promoting urbanization. These developments drive the demand for efficient facility management services to ensure optimal operational performance, cost-effectiveness, and enhanced occupant experiences. The expanding real estate sector, including commercial, residential, and mixed-use properties, further amplifies the need for comprehensive facility management solutions, contributing to the market's upward trajectory. For example, in 2023, Yarn Cloud, a pioneering Saudi Arabian company specializing in property management solutions, restated its dedication to Saudi Arabia's Vision 2030. The company has emphasized that its strategic approach is harmonized with the nation's ambitious objectives for digital transformation, economic variety, and sustained advancement.

Growing Demand for Soft FM Services

In recent years, Saudi Arabia's facility management market has witnessed a growing demand for soft FM services. Soft FM services refer to non-technical support services essential for a facility's smooth running. These services include cleaning, catering, security, landscaping, and pest control. One of the key factors driving the demand for soft FM services in Saudi Arabia is the increasing focus on sustainability and energy efficiency. Many facilities are looking for ways to reduce their energy consumption and carbon footprint, and soft FM services can help them achieve this goal. For example, landscaping services can help reduce the heat island effect in urban areas, while cleaning services can help maintain indoor air quality.

Government Scheme

In Saudi Arabia, the facility management market has been growing steadily over the past few years, driven by the country's focus on sustainable development and its Vision 2030 plan, which aims to promote economic diversification and reduce its dependence on oil. LEED certification is becoming increasingly important in the Saudi Arabian facility management market as building owners and operators seek to reduce their environmental impact, increase energy efficiency, and improve occupant health and comfort. The Saudi Green Building Forum (SGBF) has been promoting LEED certification and other green building practices in the country since 2010.

Impact of COVID-19

The pandemic significantly impacted the facility management market in Saudi Arabia, as it has on many other countries worldwide. Here are some ways the pandemic has affected the industry: Reduced demand for facility management services, Increased focus on health and safety, Greater use of technology and Delays in many construction and renovation projects, which has knocked on facility management companies. Overall, the COVID-19 pandemic has had a mixed impact on the facility management market in Saudi Arabia. While the reduced demand for services has been a challenge, the increased focus on health and safety and the greater use of technology could lead to long-term benefits for the industry.

Key Player Landscape and Outlook

In the dynamic Saudi Arabia Facility Management Market landscape, key players are positioned to capitalize on the region's robust infrastructure development and growing real estate sector. Established companies and innovative startups are vying for a strategic edge by offering comprehensive facility management services that encompass smart technologies, sustainability practices, and enhanced customer experiences. As the market continues to evolve, collaboration between facility management providers and technology firms is expected to drive the integration of cutting-edge solutions such as IoT-based monitoring, predictive maintenance, and data analytics. Moreover, the market's response to the emphasis on sustainability and the need for efficient operational management will likely shape the competitive landscape, prompting players to align their strategies with Saudi Arabia's Vision 2030 objectives and the global shift towards more environmentally conscious practices.

For instance, in July 2023, the newly appointed leader of New Musanadah outlined a series of digital transformation strategies and unveiled a comprehensive five-year growth plan. These initiatives aim to broaden the company's presence throughout Saudi Arabia and leverage technological advancements to enhance operational efficiency and customer experiences. Through these strategic moves, New Musanadah aims to strengthen its market position and contribute significantly to the country's ongoing development and expansion of its facility management sector.

For instance, in 2022, the Middle East Facility Management Association (MEFMA) is set to orchestrate the 'MEFMA Seminar' while introducing fresh educational materials tailored for the Facility Management sector in the Kingdom of Saudi Arabia (KSA). This initiative underscores MEFMA's commitment to enhancing professional development and knowledge-sharing within the industry. Through the seminar and new educational content, MEFMA aims to provide industry professionals in KSA with valuable insights, cutting-edge practices, and networking opportunities, contributing to the region's continual growth and evolution of the Facility Management sector.