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The Middle East and Africa Facility Management Market is estimated to register a CAGR of 7.63% from 2022 to 2027. 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 forecasted 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 taxations 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 are predicted to steer the demand for FM services. However, the high unemployment rate of the region 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 growth in the 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.
Scope of the Report
Facility management services involve the management of 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)), by End-user (Commercial, Institutional, Public/Infrastructure, Industrial, Healthcare), and by Country.
|Inhouse Facility Management|
|United Arab Emirates|
|Rest of Middle East and Africa|
Key Market Trends
Outsourced Facility Managment is Driving the Market Growth
- The Middle East and Africa outsourced facility management sector are still in the growth stage compared to more established and mature markets such as Europe and the United States.
- The growing application of facility management in commercial buildings, infrastructure, and industrial projects drives the market's growth. 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.
- Facility management services across the region are growing owing to several megaprojects and gigaprojects currently being undertaken. Dubai is working on most development projects in the country's commercial sector. Moreover, hosting Dubai Expo 2020, conducted in 2022, required substantial investments from the Dubai government across various infrastructure and related commercial projects. The government initiatives across infrastructure development projects will increase the need for better facility management services across the commercial sector. Both Outsourced and In-house facility management can be adopted based on demand.
- Qatar National Vision (QNV) 2030 is a long-term economic development plan driven by 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. In collaboration with its government and private sector, Qatar is working on long-term projects such as 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.
- The rest of MEA is geographically small; Ethiopia and Kenya offer a very active market for outsourced facilities management. The critical end-user sectors are banking, commercial and industrial. Many large construction projects are either planned or under construction. These developments are expected to drive the demand for Outsourced FM services in the region.
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Commercial Segment to Dominate The Market
- The Middle East & 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 switch their facility management vendors with minimal switching costs quickly. Local players with fewer international relationships are leading to fewer 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. Further, 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 the regional companies recover from the pandemic and instruct employees to return to the office, the vacancy rate is expected to decline in the commercial spaces. With a special focus on cleaning services to disinfect the office spaces and maintain hygiene protocols, the demand for soft FM services has witnessed a large spike in the region.
- Saudi Vision 2030 is the major factor driving new construction plans. The government vision is to prompt the development of megaprojects across multiple commercial spaces, be it in the retail, tourism, or residential sector, all of which will need facilities management services. For instance, USD1 trillion was spent on infrastructure and real estate projects and USD 575 billion investment to develop the Red Sea Coast into a global tourism and business hub. Additionally, there are eleven mega projects active in Saudi Arabia.
- 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.
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The Middle East and Africa 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. Also, they are spending a large chunk of the amount on advertising.
- May 2022 - Emrill launched an efficiency-enhancing App across four vertical communities comprising 178 buildings. The app aims to enhance operational efficiencies by 25% across workforce optimization and task completion. The app features a digital monitoring solution that helps schedule task allocation through an online platform. This allows supervisors to monitor the completion of the task, viewing as per individuals, or teams, posted on different floors.
- February 2022 - EFS Facilities Services inaugurated a benchmark initiative of EFS Centralised Stores (ECS), featuring innovations leveraging technology, storage solutions, and warehouse logistics management. The initiative will help support the replenishment of the satellite stores across the UAE. Some of the store's unique features include an integrated robotic system, improved tracking systems, automated material handling, flexibility, and many advanced solutions, contributing to improving material handling and supporting different services provided by the group.
- June 2022 - EmrillServices announced the expansion of its in-house offerings by the introduction of rope access cleaning to its broad range of services. The company will add Industrial Rope Access Trade Association (IRATA)-certified rope access cleaning to its existing façade cleaning services, which utilize scaffolding and building maintenance units to access buildings' external windows and façades.
- May 2022 - Imdaad sustainable Facilities Management (FM) services company won a contract worth AED 93 million. In this contract, the company offers 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.
Table of Contents
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
126.96.36.199 Single FM
188.8.131.52 Bundled FM
184.108.40.206 Integrated FM
6.2 By End-User
6.3 By Country
6.3.1 Saudi Arabia
6.3.2 United Arab Emirates
6.3.5 South Africa
6.3.8 Rest of Middle East and Africa
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
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.
8. INVESTMENT ANALYSIS
9. FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Middle East and Africa Facility Management Market market is studied from 2020 - 2027.
What is the growth rate of Middle East and Africa Facility Management Market?
The Middle East and Africa Facility Management Market is growing at a CAGR of 7.63% over the next 5 years.
Who are the key players in Middle East and Africa Facility Management Market?
EFS Facilities Services Group, Emrill Services LLC, Farnek Services LLC, Mace Group Limited , Sodexo, Inc. are the major companies operating in Middle East and Africa Facility Management Market.