Mushrooming Tourist Footfall Fueling Facility Management Demand in Saudi Arabia 1
The Saudi Arabian facility management market revenue expected to grow from $31,264.1 million in 2020 to $87,216.0 million by 2030.

The smart city initiative launched by the Saudi government aims to boost infrastructure development in urban areas. Due to the subsequent surge in construction activities, the Saudi Arabia facility management market value is expected to increase from $31,264.1 million in 2020 to $87,216.0 million by 2030, at an 11.1% CAGR between 2020 and 2030. Among the under-construction mega projects in the kingdom currently are AMAALA, QIDDIYA, King Salman Park, Red Sea project, Diriyah Gate, Jabal Omar, King Abdullah Financial District, and NEOM City.

Additionally, the government plans to integrate smart cameras, smart solid waste disposal, smart parking, smart lighting, and pollution monitoring tools into five cities. Another key factor that will propel the Saudi Arabian facility management market growth will be the rising travel and tourism activities. To cater to the increasing number of visitors and further boost this sector, new resorts and tourist attractions are being developed, which will require various facility management services after they are commissioned.

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During the COVID-19 pandemic, a major part of the country, including its tourist attractions, religious places, hospitality units, commercial spaces, and many factories, was shut down. This negatively impacted the Saudi Arabian facility management market, as the shutting down of end-user facilities killed the demand for such services.

Saudi Arabia Facility Management Market Segmentation Analysis

In the years to come, the cleaning service category will witness the fastest growth in the Saudi Arabian facility management market. Due to the COVID-19 pandemic, the awareness on hygiene has risen massively, since the virus is transmitted via nasal droplets accumulating on hands and objects that haven’t been sanitized. 

The business and corporate category held the largest share in the Saudi Arabian facility management market in the past, based on end user. To reduce its dependence on oil trade, the government is offering support to the private sector. This is leading to the development of office spaces, which is propelling the demand for various facility management services in the business and corporate sector.

Throughout this decade, the in-house bifurcation, under the mode segment, will keep dominating the Saudi Arabian facility management market. In-house employees can be expected to do a more-thorough job than third parties, especially in the areas of catering, asset management, and security. This is why most end users in the kingdom prefer to take care of their facility management needs by themselves.

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The highest CAGR in the Saudi Arabian facility management market, under segmentation by type, of 11.9%, is predicted to be seen in the soft services category. Public and private entities in the kingdom are generating an increasing demand for cleaning, catering, security, support, and other non-technical services. This service demand is now being fulfilled by third-party companies, thereby driving the industry.

Presently, the higher revenue in the Saudi Arabian facility management market, on the basis of sector, is generated by the private bifurcation. The kingdom’s efforts to diversify its economy have led to the growth of private-sector companies in the last few years.

The major players in the Saudi Arabian facility management market include Muheel Services LLC, APSG Group, Safari Group, AMNCO, Khidmah LLC, EFS Facilities Services Group Limited, Enova Facility Management, Nesma Trading Co. Ltd., Musanadah Facilities Management Co. Ltd., Al Borj Facility Management, Al Hajry Overseas Co. Ltd., Petrojana, Zahran Holding Company, FMCO, Initial Saudi Group, CBRE Group Inc., Jones Lang LaSalle Incorporated, and Al Yamama Group.

Key Findings of Saudi Arabia Facility Management Market Report

  • Property services were demanded most widely historically
  • End users to increasingly outsource facility management services
  • Growing hospitality sector driving market expansion
  • Market players securing service contracts for continued prosperity
  • Usage of advanced technologies key trend in industry
  • Demand for cleaning services rising fastest

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