Report Overview

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

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 Construction Activities For Infrastructural Development
         2. Increasing Safety And Hygiene Awareness In Working Environments
      2. Market Restraints
         1. High Cost Of FM Business Operations
      3. Market Challenges
         1. Negative Impact of the COVID-19 Pandemic
      4. Market Opportunity
         1. Growing Adoption Of IoT
         2. Increasing Investment Towards Infrastructural Development
   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. UAE Facility Management Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Type
         1. Hard Services
         2. Soft Services
      2. By Service
         1. In-House
         2. Outsourced
            1. Singled
            2. Bundled
            3. Integrated FM
      3. By End User
         1. Commercial And Retail
         2. Manufacturing And Industrial
         3. Government, Infrastructure, And Public Entities
         4. Institutional
         5. Others
      4. By Region
         1. Abu Dhabi
         2. Dubai
         3. Others
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 UAE Facility Management Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Emcor Facilities Services WLL
   2. ENGIE Cofely Energy Services LLC
   3. Imdaad LLC
   4. Farnek Services​ LLC
   5. Enova Facilities Management Services LLC​
   6. Etisalat Facilities Management LLC
   7. Emrill Services LLC
   8. Marafeq Facilities Management​ LLC
   9. Deeyar Facilities Management LLC
   10. ServeU LLC
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: UAE Facility Management Market Segmentation

Figure 2: UAE Facility Management Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: UAE Facility Management Market Size, By Value (USD Billion), 2017-2027

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

Figure 6: UAE Facility Management Market Share (%), By Service, By Value, 2017-2027

Figure 7: UAE Facility Management Market Share (%), By End User, By Value, 2017-2027

Figure 8: UAE Facility Management Market Share (%), By Region, By Value, 2017-2027

List of Tables

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

Table 2: UAE Facility Management Market Size, By Service, By Value (USD Billion), 2017-2027

Table 3: UAE Facility Management Market Size, By End User, By Value (USD Billion), 2017-2027

Table 4: UAE Facility Management Market Size, By Region, By Value (USD Billion), 2017-2027

Table 5: Emcor Facilities Services WLL Financial Analysis

Table 6: Emcor Facilities Services WLL Business Overview

Table 7: ENGIE Cofely Energy Services LLC Financial Analysis

Table 8: ENGIE Cofely Energy Services LLC Business Overview

Table 9: Imdaad LLC Financial Analysis

Table 10: Imdaad LLC Business Overview

Table 11: Farnek Services​ LLC Financial Analysis

Table 12: Farnek Services​ LLC Business Overview

Table 13: Enova Facilities Management Services LLC​ Financial Analysis

Table 14: Enova Facilities Management Services LLC​ Business Overview

Table 15: Etisalat Facilities Management LLC Financial Analysis

Table 16: Etisalat Facilities Management LLC Business Overview

Table 17: Emrill Services LLC Financial Analysis

Table 18: Emrill Services LLC Business Overview

Table 19: Marafeq Facilities Management​ LLC Financial Analysis

Table 20: Marafeq Facilities Management​ LLC Business Overview

Table 21: Deeyar Facilities Management LLC Financial Analysis

Table 22: Deeyar Facilities Management LLC Business Overview

Table 23: ServeU LLC Financial Analysis

Table 24: ServeU LLC Business Overview