MEA Facility Management Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 53.73 Billion |
| Market Size (2029) | USD 74.59 Billion |
| CAGR (2024 - 2029) | 6.78 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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MEA Facility Management Market Analysis
The MEA Facility Management Market size is estimated at USD 53.73 billion in 2024, and is expected to reach USD 74.59 billion by 2029, growing at a CAGR of 6.78% during the forecast period (2024-2029).
Several private and public projects, including construction, infrastructural, energy projects, etc., are creating a huge demand for FM services.
- Driven by the growing emphasis on cleaning, disinfection, and space management practices, and with several ongoing infrastructural projects, the facility management market is anticipated to grow steadily over the forecast period. The extreme climatic conditions have further necessitated hard and soft FM services in the region. The regional market is characterized by the integration of various technologies, like computer-aided facility management (CAFM) and building management systems (BMS), which are expected to take center stage alongside the penetration of Remote Monitoring, Internet of Things, Mobile Solutions, Robotics, Artificial Intelligence to ensure the viability of FM contracts, especially for outsourced FM Services. The COVID-19 pandemic has further accelerated the adoption of technology processes to continue with remote FM services in the region.
- Saudi Arabia, the United Arab Emirates, and Qatar can be identified as key areas of growth for the facility management market in the region, owing to their increasing demand for commercial real estate. The intensifying competition between Dubai and Saudi to host global companies has resulted in relaxing taxation and ensuring the provision of a supportive business ecosystem in the region. According to October 2021 reports, the Royal Commission of Riyadh City announced that the country plans to host 7,000 new businesses, making Saudi Arabia its regional headquarters. With the influx of businesses, the region is expected to see a boost in demand for FM services.
- Furthermore, the economic development of countries like Nigeria has positively influenced the studied market. Current market dynamics indicate the increasing demand for outsourcing FM services, moving away from in-house services. Favorable government support to induce large-scale infrastructural development through monetary aid and policy changes is predicted to steer the demand for FM services. However, the region's high unemployment rate is attributed to the lack of skills, which has posed a significant challenge for the growth of the facility management market.
- With the regional regulatory bodies outlining real estate owners and developers to optimize their real estate assets, the demand for FM services is rising. However, with a lack of skilled workforce and the cost of hiring rising, the market players are engaging in partnerships and acquisitions to pool talent and deliver long-term contractual obligations.
- The COVID-19 pandemic highlighted the need for cleaning and sanitation services as part of the hygiene protocol across healthcare institutes, which led to strong demand for soft facility management services. The demand side dynamics presented a new opportunity for leading several companies to redesign their policies and further tailor their service offerings to include hygiene maintenance and COVID-19 safety provisions.
MEA Facility Management Market Trends
Outsourced Facility Managment is Driving the Market Growth
- The Middle East and African outsourced facility management sectors are still in the growth stage compared to more established and mature markets. The increasing emphasis on adopting green buildings across developing sectors, such as retail and real estate, is expected to stimulate the growth of outsourced facility management in the region. For instance, EchoStoneannounced has planned to build 182,000 affordable, certified green buildings in Lagos, Nigeria, by 2023.
- The growing application of facility management in commercial buildings, infrastructure, and industrial projects drives the market's growth for outsourced FM, including soft services. One of the major factors driving the facility management market is growing construction activity. For instance, Saudi Arabia is invested heavily in constructing ports, railways, roads, and airports. For large-scale projects, outsourced facility management services will bring new opportunities to the market.
- Outsourced Facility management services across the region are growing owing to several megaprojects currently being undertaken. KSA is working on most development projects in the country's commercial sector. With continuing investment and technological enhancements, Saudi Arabia invests in diverse projects. Saudi plans to invest approximately USD 1 trillion in its non-hydrocarbon sector by 2035. Some key projects include Qiddiya Entertainment City, King Abdullah Financial District, Neom, the Red Sea Project, and Amaala.
- Qatar National Vision (QNV) 2030 is a long-term economic development plan which has included the preparations for the 2022 FIFA World Cup. Qatar invests heavily in infrastructure programs focused on its non-oil and gas sectors. The Ministry of Transport and Communications (MoTC) functions as the main regulator of the transportation sector, overseeing the work of individual transport operators and project owners, and creates an oppertunity for the vendors' out sourced FM services.
- Additionally, in collaboration with its government and private sector, Qatar is working on major rail and expressway projects, the recent opening of the new commercial seaport and significant capacity upgrades at Hamad International Airport(HIA), logistics flows, and multimodal transportation networks are being developed at a remarkable pace. To support these construction projects, facility management services need to be outsourced. This will drive new growth opportunities in the facility management market.
Commercial Segment to Dominate The Market
- The Middle-East and Africa facility management services market is fragmented as significant local players enter the commercial sector. For instance, the market is dominated by local players such as EFS Facilities Services Group, Emrill Services LLC, Farnek Services LLC, Sodexo, Inc., etc. And the local players are offering competitive pricing in the market, which reduces the suppliers' bargaining power and thus gives the buyers an option to quickly switch their facility management vendors with minimal switching costs. Local players with fewer international relationships are leading to less adoption of technically advanced FMS services such as robotics used for cleaning practices which will be a major threat with a long-term effect.
- The inflow of investments from foreign companies in different sectors has positively attributed to the growing need for offices boosting the commercial real estate sector. Furthermore, the demand for the commercial real estate sector in the region translates to a higher requirement for facility management services for maintenance and cleaning, among others. As regional companies recover from the pandemic and instruct employees to return to the office, the vacancy rate is expected to decline in commercial spaces. With a special focus on cleaning services to disinfect office spaces and maintain hygiene protocols, the region's demand for soft FM services has witnessed a large spike.
- Moreover, the increase in office buildings also demands facilities management. For instance, Reem Mall in Abu Dhabi marks one of the megaprojects to boost the commercial retail sector by facilitating more than 450 stores for retail, a hypermarket, a multiplex cinema, and two food courts, supporting the commercial food outlets, too. Several such projects are under construction in the GCC and Northern African countries.
- Kuwait is a fast-emerging IT hub within the Middle East and Africa region. With the country's 2035 Vision, the nation is poised to become a financial and commercial center within the region. The rapid development of IT hubs in the country is directly influencing the demand for FM services in the country.
- Cairo continues to be the center of primary activity in terms of the development of the commercial real estate sector in Egypt. The lift of lockdown restrictions had added to the mobility of the people and organizations, allowing them to re-convene work from the office, which is also set to increase the occupancy rate in the country. Furthermore, the entry of several foreign organizations into the Greater Cairo region has boosted the office space demand. It is expected to hold a strong positive impact on the facility management services.
MEA Facility Management Industry Overview
The Middle East and African facility management market is highly fragmented, with local and international players having decades of industry experience. The FM vendors are incorporating a powerful competitive strategy by leveraging their expertise. Additionally, they are spending a large chunk of the amount on advertising.
- June 2022 - EmrillServices announced the expansion of its in-house offerings by introducing rope access cleaning to its broad range of services. The company would add Industrial Rope Access Trade Association (IRATA)-certified rope access cleaning to its existing façade cleaning services, utilizing scaffolding and building maintenance units to access buildings' external windows and façades.
- February 2022 - A two-year Total Facilities Management (TFM) contract has been given to Farnek by PID Owners Association Management LLC (PIDOAM), a division of Dubai Investments PJSC. According to the agreement, Farnek would assign more than 100 workers to the Green Community and DIP communal spaces for the maintenance of the mechanical, electrical, and plumbing (MEP), cleaning, and security services.
MEA Facility Management Market Leaders
EFS Facilities Services Group
Emrill Services LLC
Farnek Services LLC
Mace Group Limited
Sodexo, Inc.
*Disclaimer: Major Players sorted in no particular order
MEA Facility Management Market News
- June 2022 - Egypt's MRB executed facility management contracts worth EGP 3 billion (USD 160 million), covering 50 commercial and residential projects nationwide. To jointly supply their services to malls, hotels, and resorts in Egypt, MRB and FACIL, a hospitality management services provider based in Dubai, signed a memorandum of understanding. The two businesses woyild focus on early-stage participation in malls and hospitality projects in Egypt to optimize building and system operations and deliver customer satisfaction.
- May 2022 - Imdaad Sustainable Facilities Management (FM) services company won a contract worth AED 93 million in UAE. In this contract, the company could offer the FMS provide an extensive range of industry-leading services, including mechanical, electrical, plumbing (MEP), air conditioning (HVAC), heating, ventilation, and civil works, for its clients operating in a variety of sectors such retail, hospitality, real estate, and healthcare.
Facilities Management Middle East Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Megaprojects in the Pipeline is Expected to Boost the Construction Sector Driving the Need for Facility Management Services
5.1.2 Growing Demand of Soft Facility Management Services
5.2 Market Restraints
5.2.1 Fragmented Nature of the Market in the Region
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Inhouse Facility Management
6.1.2 Outsourced Facility Mangement
6.1.2.1 Single FM
6.1.2.2 Bundled FM
6.1.2.3 Integrated FM
6.2 By End User
6.2.1 Commercial
6.2.2 Institutional
6.2.3 Public/Infrastructure
6.2.4 Industrial
6.2.5 Healthcare
6.2.6 Other End Users
6.3 By Country
6.3.1 Saudi Arabia
6.3.2 United Arab Emirates
6.3.3 Qatar
6.3.4 Kuwait
6.3.5 South Africa
6.3.6 Egypt
6.3.7 Nigeria
6.3.8 Rest of Middle-East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Engie Cofely Energy Services LLC (engie Sa)
7.1.2 EFS Facilities Services Group
7.1.3 Ejadah Asset Management Group
7.1.4 Emrill Services LLC
7.1.5 Farnek Services LLC
7.1.6 Initial Saudi Arabia Company Limited
7.1.7 Kharafi National for Infrastructure Projects Developments Construction and Services SAE
7.1.8 Mace Group Limited
7.1.9 Serco Group PLC
7.1.10 Sodexo Inc.
7.1.11 Ecolab Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE TRENDS
MEA Facility Management Industry Segmentation
Facility management services involve building upkeep, utilities, maintenance operations, waste services, security, etc.
The Middle East and Africa Facility Management market is segmented by Type (In-house and Outsourced (Single, Bundled, and Integrated)), End-user (Commercial, Institutional, Public/Infrastructure, Industrial, and Healthcare), and Country. The market sizes and forecasts are provided for a value of USD billion for all the above segments.
The Middle East and Africa Facility Management Market is valued at USD 45.97 billion in the base year and is expected to grow at a CAGR of 6.78% during the forecast period to become USD 69.85 billion by the next five years.
| By Type | |||||
| Inhouse Facility Management | |||||
|
| By End User | |
| Commercial | |
| Institutional | |
| Public/Infrastructure | |
| Industrial | |
| Healthcare | |
| Other End Users |
| By Country | |
| Saudi Arabia | |
| United Arab Emirates | |
| Qatar | |
| Kuwait | |
| South Africa | |
| Egypt | |
| Nigeria | |
| Rest of Middle-East and Africa |
Facilities Management Middle East Market Research FAQs
How big is the MEA Facility Management Market?
The MEA Facility Management Market size is expected to reach USD 53.73 billion in 2024 and grow at a CAGR of 6.78% to reach USD 74.59 billion by 2029.
What is the current MEA Facility Management Market size?
In 2024, the MEA Facility Management Market size is expected to reach USD 53.73 billion.
Who are the key players in MEA Facility Management Market?
EFS Facilities Services Group, Emrill Services LLC, Farnek Services LLC, Mace Group Limited and Sodexo, Inc. are the major companies operating in the MEA Facility Management Market.
What years does this MEA Facility Management Market cover, and what was the market size in 2023?
In 2023, the MEA Facility Management Market size was estimated at USD 50.32 billion. The report covers the MEA Facility Management Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the MEA Facility Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Facility Management Services in Middle East Industry Report
Statistics for the 2024 MEA Facility Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. MEA Facility Management analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
