Report Overview

UAE facility management market is gaining significant traction because of the flourishing tourism sector in the country, along with the increasing construction activities because of the increasing number of infrastructure development projects.

UAE Facility Management Market- Industry Trends & Forecast Report 2027

The UAE facility management market was worth USD 14.4 billion in 2020 and is further projected to reach USD 29.8 billion by the year 2027, growing at the CAGR of 11.0% in the forecast period. A flourishing tourism sector in the UAE is causing the UAE facility management market to gain significant traction. Additionally, increasing construction activities in the country because of the increasing number of infrastructure development projects, are taking the kingdom’s facility management market to new heights.

Source: BlueWeave Consulting

UAE Facility Management Market- Overview

Facilities management (FM) aims to provide logistic services and other property support services in an efficient and effective manner. It refers to the management of projects, human resources, operations, communications, security, etc., designed to ensure that an environment runs smoothly and is suitable for living or working. The term environment here refers to infrastructure, real estate, buildings, and grounds. FM services are divided into two subcategories based on their work type. The sub-segments are known as hard services and soft services. Physical assets and technical services constitute hard services, while soft services involve a range of functions that are performed on a daily basis by others.

UAE Facility Management Market Forecast and Trends

Growth Drivers

Growing Expenditure Towards Tourism

As the government is making investments towards economic diversification, the tourism sector in the UAE is emerging as the strongest sector. The United Arab Emirates is the most established and flourishing among all the gulf nations. This factor is significantly fueling the growth of the UAE facility management. Furthermore, the increasing construction of railways, airports, transportation facilities, hotels, etc., for tourists and the strict regulations regarding safety, cleanliness, and hygiene in the UAE is driving the demand for facility management in UAE.

Increasing Cloud Adoption in Facility Management

A major contributing factor to the growth of the UAE market is the growing adoption of cloud-based facility management. The launch of SaaS platforms and better accessibility virtually which allows advanced security and remote management of material components and manpower are assisting in cost reductions. In addition to disaster recovery, scalability, easy accessibility, and real-time collaboration, SaaS platforms can also provide insights into ongoing operations, which drives the growth of the UAE facility management market.

Restraints

High Cost of FM Business Operations

A rising inflation rate in the UAE economy puts increasing pressure on the providers of facility management services. The cost of manpower accounts for 60% of the operational costs for the service providers, which are being burdened by inflation. Furthermore, the cost of spare parts, consumables, logistics, as well as manpower is highly volatile and proves to be a major barrier to the growth of the UAE facility management market.

Impact of COVID-19 on UAE Facility Management Market

The unprecedented outbreak of COVID-19 significantly disrupted UAE’s economic growth. Major economic activities, such as oil and gas, tourism, etc., responsible for the UAE's GDP were hindered by the increasing COVID-19 cases and subsequent lockdown. Additionally, the government of the UAE imposed a temporary ban on commercial operations to limit the spread of the virus during the initial phase of the pandemic. Consequently, the market demand for facility management fell sharply, resulting in huge losses for service providers.

UAE Facility Management Market - By Type

Based on types, the UAE facility management market is segmented into hard services and soft services. The hard services segment holds the largest market share because of the growing demand for services, such as plumbing, drainage line cleaning, lighting and electrical maintenance, AC repairing, etc. Additionally, the increasing number of commercial facilities in the UAE is also powering the growth of the hard services segment. On the other hand, soft services are expected to grow at a high rate due to the growing awareness of waste management, water management, and energy management, among others.

UAE Facility Management Market - By Service

Based on services, the UAE facility management market is segmented into in-house and outsourced. Due to better management of the employees and staff's punctuality and regularity, the in-house service segment accounts for the biggest share of the market. Outsourced services are likely to witness the highest CAGR during the forecast period due to their cost-efficiency and ability to manage a wide range of facility issues. Furthermore, the growing penetration of cloud and IoT technologies in FM services contributes to market growth.

UAE Facility Management Market - Regional Insights

Geographically, the UAE facility management market is segmented into Abu Dhabi, Dubai, and others. Dubai dominates the UAE facility management market due to its high investment in infrastructure development. To boost the country's GDP, the government is focusing on diversifying the economy beyond the oil and gas industry. Dubai's tourism industry is also one of the major sources of foreign cash inflow. Therefore, the commercial spaces and infrastructure rely on facility management services for efficient facilities management.

Competitive Landscape

The leading players in the UAE facility management market are Emcor Facilities Services WLL, ENGIE Cofely Energy Services LLC, Imdaad LLC, Farnek Services​ LLC, Enova Facilities Management Services LLC, Etisalat Facilities Management LLC, Emrill Services LLC, Marafeq Facilities Management​ LLC, Deyaar Facilities Management LLC, ServeU LLC, and other prominent players.

The industry is highly fragmented, with a large number of participants, and has tremendous growth potential. To expand their revenue, the market players focus on expanding their services across industries. They are also investing in the adoption of advanced technologies, such as IoT and cloud computing. In addition, competitive strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., are also prevalent in this market.

Recent Developments

• In October 2021, ServeU, a leading facility management company, launched its own dedicated customer mobile application to manage its Facilities Management (FM) services.
• In September 2021, Imdaad, a Dubai-based sustainable Facilities FM services provider, announced a partnership with Disrupt-X, a Dubai-based IoT development company, to introduce IoT technology for enhancing FM services in the UAE.

Scope of the Report

By Type

• Hard Services
• Soft Services

By Service

• In-House
• Outsourced

1. Singled
2. Bundled
3. Integrated FM

By End-User

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

By Region

• Abu Dhabi
• Dubai
• Others