Report Overview

Saudi Arabia Facility Management - Industry Trends & Forecast Report 2027

Saudi Arabia facility management market was at USD 31.0 billion in 2020 and is projected to reach USD 68.0 billion by 2027, growing at a CAGR of 12.0% over the forecast period 2021-2027. Facility Management services across different regions of Saudi Arabia like Makkah, and Riyadh have expanded exponentially, thereby driving the growth of the Saudi Arabia facility management market. Various infrastructural development programs, as well as an increase in construction activities, have fueled the growth of this sector and will continue to do so in the coming years. The growing tourism sector is also going to accelerate the demand for facility management during the forecast period. Moreover, through the application of advanced technologies like the Internet of things (IoT), and Artificial Intelligence (AI), the companies are offering improved, productive, and cost-efficient services, which are driving the market growth.

Saudi Arabia Facility Management - Market Overview

Facility management services include project management, human resources management, logistics management, communications management, security management, and other services to ensure the smooth running of an environment runs smoothly and make it suitable for living or working. These 'environments' include infrastructure, real estate, buildings, and grounds.

Facility Management services are divided into subcategories based on their work type. The sub-segments are known as hard services and soft services. Hard services are technical in nature and are responsible for managing physical properties. It includes electrical maintenance, elevator/life and conveyor maintenance, fire safety and emergency services, building maintenance, etc. Soft services are a range of essential services which require daily performance by other people. These services include cleaning, security, waste management, pest control, help desk, etc.

Saudi Arabia Facility Management Market Forecast and Trends

Growth Drivers

Infrastructure Development is Expanding the Saudi Arabia Facility Management Market

Infrastructural development is very crucial for the growth of an economy. Therefore, the Saudi Arabia government is making big investments in the same direction. To enhance transportation infrastructure, highways, metros, railways, airports, and other modes of transportation are being built. This is driving the facility management business in the country forward. Furthermore, privately owned environments such as shopping malls, movie theatres, and real estate are on the rise, necessitating facility management services to ensure proper operation. These factors are expected to drive the Saudi Arabian market forward during the forecast period.

The Application of Internet of Things (IoT) and Advanced Technology is Booming the Market

Advanced technologies, such as the Internet of Things (IoT) are being used in every industry (IoT), and the facility management industry is no exception. The high penetration of technology has been helping service-providing companies in Saudi Arabia to expand and offer better management. Furthermore, to broaden the scope of management, they are combining different technologies such as sensors, gauges, smart devices, and so on. Numerous companies in Saudi Arabia have been leveraging the Integrated Workplace Management System (IWMS) to evaluate data and implement tools for managing available resources. These technologically advanced services also enable them to monitor requirements and performance in real-time. These factors will play a major role in driving the growth of Saudi Arabia facility management market during the forecast period.

Restraints

Absence of Technological Applications and Well-Structured Contracts

The Saudi Arabia facility management industry must put in a lot of effort to make better and more effective use of technology. Small and medium-sized businesses face many obstacles when it comes to incorporating technology into their everyday operations. This is mostly due to the limited amount of capital available for investment, which must first be used to manage the company. The rapid growth of infrastructure development is becoming more demanding and necessitates a larger workforce. Without technology, small businesses find it difficult to handle their operations, and as a result, they struggle most of the time. Furthermore, larger corporations sign contracts for longer periods. However, this may not be the case for smaller ones. As a result, they struggle with keeping the contract ongoing or find a new one.

Impact of COVID-19 on Saudi Arabia Facility Management Market

The outbreak of COVID-19 and the implementation of lockdown had a very drastic effect on the facility management market in Saudi Arabia. Because of the lockdown, offices, shopping centers, airports, and railways were forced to close, thereby reducing the demand for these services.

However, after COVID-19, there has been a significant increase in cleanliness and hygiene awareness, which aided the facility management industry is getting back on track. Governments and private institutions are recruiting to restart business activities, which are rising the demand for labor even more. Furthermore, for managing containment zones, demand for facility management is going to surge in many countries.

Saudi Arabia Facility Management Market - By Type

Based on type, the Saudi Arabia facility management market is categorized into in-house and outsourced segments. According to an estimate, both in-house and outsourced facility management services possess great potential to push the market forward. However, the in-house type covered the larger share of the market. The primary reason behind this growth is that this segment allows companies to hire their employees for management on a contract basis. This fosters loyalty towards the company, resulting in improved performance and outcomes. However, as more facility management companies relocate to Saudi Arabia, the outsourced segment is expected to develop and overtake the in-house segment during the forecast period.

Saudi Arabia Facility Management Market - By End-User

Based on end-users, the market is segmented into commercial and retail, manufacturing and industrial, government, infrastructure, & public entities, institutional, and others. The infrastructure segment held the highest revenue share in facility management in Saudi Arabia. Since Saudi Arabia's infrastructure is constantly growing, there is a huge demand for facility management services in this sector. Furthermore, the manufacturing and industrial sector is also projected to grow at a substantial rate in the upcoming years.

Saudi Arabia Facility Management Market - Regional Insights

Geographically, the Saudi Arabia’s facility management market is divided into Makkah, Riyadh, Eastern Province, and the rest of Saudi Arabia. Among these, Makkah and Riyadh have high concentrations of facility management demand. This is because Riyadh is Saudi Arabia's capital with a well-developed infrastructure. It has a large number of offices, malls, and other sectors that include facility management. Makkah, on the other hand, is a holy land with a high tourism rate. Furthermore, all of the regions are constantly under construction as a result of government measures for infrastructure growth. As a result, the Saudi facility management market is always thriving and is expected to expand during the forecast period.

Saudi Arabia Facility Management Market - Competitive Landscape

The key players in the Saudi Arabia Facility Management market are Initial Saudi Group, SETE Saudia, Saudi Emcor Company Limited, Zamil Operations, and Maintenance Company (Zamil Group), Almajal G4S, Al Yamama Group, Enova Facility Management, Khidmah LLC, Nesma Trading Co. Ltd., AMNCO, Al Borj International, CBRE Group, Inc., Zahran Holding Company, Safari Group, and other prominent players.

The Saudi Arabia facility management market is an amalgamation of both giant companies and small enterprises. These market players are always adopting competitive strategies like partnerships and mergers to stay ahead of their competitors. They also use smaller contracts to secure larger offers for providing facility services in order to increase their clientele in the local market. Furthermore, these businesses are implementing cutting-edge technology in order to provide better services and management.

Recent Developments

• In March 2021, Ramco Systems, a global software provider to expand its operations in Saudi Arabia. The company aims to provide a single integrated system for automating the logistic services. This expansion has been declared keeping in mind the business models of leading logistic service providers like SISCO and Xenel Group, and LogiPoint. The integrated platform will be able to manage different operations like facility management, transport, hub, warehouse, fleet management, etc.
• In February 2020, Enova Facility Management and Kinan International joined and got into a three-year contract to deliver facility management services at 10 malls around Saudi Arabia. The purpose of this joint venture was to provide stock management, mechanical, electrical, subcontractor work, technical, etc. for managing 265,000, square meter areas. Enova Facility Management will be leading this course.

Scope of the Report

By Type

• In-House
• Outsourced

1. Single
2. Bundled
3. Integrated FM

By End-User

• Commercial and Retail
• Manufacturing and Industrial
• Government, Infrastructure, and Public Entities
• Institutional
• Other

By Region

• Makkah
• Riyadh
• Eastern Province
• Rest of Saudi Arabia

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Growing Investment Towards Infrastructural Development
         2. Increasing Penetration Of Internet Of Things (Iot) And Advanced Technology
      2. Market Restraints
         1. Absence of Technological Applications and Well-Structured Contracts
      3. Market Challenges
         1. Negative Influence of the COVID-19 Pandemic
      4. Market Opportunity
         1. Awareness Surrounding Hygiene and Cleanliness
         2. Gradual Shift Towards Economic Diversification
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. Saudi Arabia Facility Management Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Type
         1. In-House
         2. Outsourced
            1. Single
            2. Bundled
            3. Integrated FM
      2. By End-User
         1. Commercial and Retail
         2. Manufacturing and Industrial
         3. Government, Infrastructure, and Public Entities
         4. Institutional
         5. Other
      3. By Region
         1. Makkah
         2. Riyadh
         3. Eastern Province
         4. Rest of Saudi Arabia
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on Saudi Arabia Facility Management Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Initial Saudi Group
   2. SeteSaudia
   3. Saudi Emcor Company Limited
   4. Zamil Operations and Maintenance Company
   5. Almajal G4S
   6. Al Yamama Group
   7. Enova Facility Management
   8. Khidmah LLC
   9. Nesma Trading Co. Ltd.
   10. AMNCO
   11. Al Borj International
   12. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: Saudi Arabia Facility Management Market Segmentation

Figure 2: Saudi Arabia Facility Management Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: Saudi Arabia Facility Management Market Size, By Value (USD Million), 2017-2027

Figure 5: Saudi Arabia Facility Management Market Share (%), By Type, By Value, 2017-2027

Figure 6: Saudi Arabia Facility Management Market Share (%), By End-User, By Value, 2017-2027

Figure 7: Saudi Arabia Facility Management Market Share (%), By Region, By Value, 2017-2027

List of Tables

Table 1: Saudi Arabia Facility Management Market Size, By Type, By Value, 2017-2027

Table 2: Saudi Arabia Facility Management Market Size, By End-User, By Value (USD Million), 2017-2027

Table 3: Saudi Arabia Facility Management Market Size, By Region, By Value (USD Million), 2017-2027

Table 4: Initial Saudi Group Financial Analysis

Table 5: Initial Saudi Group Business Overview

Table 6: SeteSaudia Financial Analysis

Table 7: SeteSaudia Business Overview

Table 8: Saudi Emcor Company Limited Financial Analysis

Table 9: Saudi Emcor Company Limited Business Overview

Table 10: Zamil Operations and Maintenance Company Financial Analysis

Table 11: Zamil Operations and Maintenance Company Business Overview

Table 12: Almajal G4S Financial Analysis

Table 13: Almajal G4S Business Overview

Table 14: Al Yamama Group Financial Analysis

Table 15: Al Yamama Group Business Overview

Table 16: Enova Facility Management Financial Analysis

Table 17: Enova Facility Management Business Overview

Table 18: Khidmah LLC Financial Analysis

Table 19: Khidmah LLC Business Overview

Table 20: Nesma Trading Co. Ltd. Financial Analysis

Table 21: Nesma Trading Co. Ltd. Business Overview

Table 22: AMNCO Financial Analysis

Table 23: AMNCO Business Overview

Table 24: Al Borj International Financial Analysis

Table 25: Al Borj International Business Overview