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The Qatar facility management market is expected to grow at a CAGR of 7.90% during the forecast period, 2022-2027. The government-led construction boom and surging emphasis on green building practices are increasing Qatar's demand for facility management.
· In addition to transport projects, the government aims to rapidly expand tourism, education, and real estate, to maintain its competencies under the Qatar National Vision 2030 (QNV 2030 ). Further, as the 2022 FIFA World Cup deadline is nearing, the region is witnessing a rise in construction activities and is upgrading its infrastructure.
· According to Qatar's Ministry of Finance, Qatar has a budget of 210.5 billion Qatari Riyal ( USD 58 billion) to complete the infrastructure projects. It is the most significant budget in the last five fiscal years in the Gulf states and follows a year of heavy spending on infrastructure projects.
· According to a Bloomberg report, World Cup-related infrastructure projects are valued at USD 300 billion. In addition to building stadiums specifically to host FIFA world cup matches, Qatar has been investing in modernizing its infrastructure. The goal is to become more of a transport hub for a significant portion of the globe. Development of airports, upgraded roadways, a more extensive metropolitan network, and emerging cities are the country's top priorities.
· The shift in approach toward building energy-use reductions has led to a change in the roles of FM teams. Although Qatar is ahead in the green building practices than most countries in the region, the scope for FM operators is likely to increase further as the number of developers and organizations adopting green building practices in the country is increasing significantly.
· Further, Qatar's residential, commercial, industrial, and public infrastructure sectors are the most served. The upcoming sectors include oil and gas companies, banks, large waterfront properties, and sports and healthcare facilities. Furthermore, it seems that increased awareness among the buyers in the market is prompting facility management operators to match the pricing accordingly.
· In the future, FM operators will likely focus on incorporating technology-based solutions into their everyday operations. By embracing digital disruption, FM operators can collaborate between asset owners, developers, and service providers. Also, to counter the outbreak of COVID-19 in the region, the maintenance solutions that were previously being employed are extended to janitorial and sanitizing operations, such as wiping down flat surfaces, touch panel displays, and door handles.
· Micro and macroeconomic factors restrain the market from growing. While volatile oil prices are likely to impact the spending levels of end-users, the shortage of skilled labor and increasing labor costs prevent Facility Management companies from reaching their business goals.
Scope of the Report
Facility management services involve building upkeep, utilities, maintenance operations, waste services, security, etc. These services are further divided into hard facility management services and soft facility management services spheres. The adoption of facility management solutions and services is likely to be driven by several factors, including an increase in demand for cloud-based facility management solutions and a rise in demand for facility management systems linked with intelligent software.
|By Type of Facility Management|
|Inhouse Facility Management|
|By End User|
|Other End Users|
Key Market Trends
Public/ Infrastructure Sector Accounts for Significant Growth
· The government buildings in the country use services such as fire alarms and safety, energy management solutions, CCTV monitoring services, and other integrated facility management services. Local providers, like Elegancia, look to clientele across the government organizations aggressively and subsequent long-term project partnerships.
· The PWD sector is expected to roll out 19 infrastructure projects with Residential Real Estate as a critical focus. These include plans to build hard infrastructure on more than 5000 plots of land. Eleven other projects that include new health care facilities, schools, and highway and road expansions that were started earlier will be completed.
· Also, the introduction of freehold property has increased the number of property owners from the Western countries that demand high facility management standards. According to Ian Harfield, CEO of CBFM, the Middle Eastern market is more of a dynamic market in comparison to the US, European, and Australian markets. Moreover, service providers must be dynamic and agile to meet the clients' changing needs. Most international companies enter the Qatari market through joint ventures with local companies since retaining a skilled workforce is challenging.
· Qatar upholds the transport infrastructure with great connectivity through air, rail, road, and sea, which is a major contributor to the country's sustainable growth. The country continues to invest heavily in exploring areas for enhanced connectivity and upgrading the existing infrastructure. For instance, in the second half of 2021, the spending on major infrastructure projects was QR 15 billion ( USD 4 billion), which was 20.8% of the state's budget.
· Further, the infrastructure push from the government is focused on providing more opportunities to local construction firms, with small-scale businesses expected to be principal beneficiaries of nationwide development projects. This trend is expected to help create influential local facility management participants. With the availability of stronger local partners, the market is expected to attract foreign partners to continue to invest in large projects in a post-2022 scenario.
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Increasing Emphasis on Green Building Practices
· The growing importance of Qatar in the market is the high number of certified green buildings. In the Middle East, only UAE has a higher number of certified green buildings. Qatar has the fifth-highest number of LEED-registered and certified buildings outside the U.S.
· Qatar Green Building Council (QGBC), the local regulatory body, has been actively promoting sustainable practices. By organizing the Qatar Sustainability Week (QSW), the regulatory body is raising awareness among a wider community (the public and private sectors).
· The Global Sustainability Assessment System (GSAS) system, developed by Qatar, is the world's most comprehensive green building assessment system. It has been developed after a rigorous assessment of 40 green building codes available worldwide. The codes developed strongly focus on sustainable development and environmental stress mitigation.
· Sustainable Energy Management Services remain one of the key offerings of the vendors in the market. The vendors' advisory services include reducing water consumption, carbon emissions, and compliance with legislation and energy consumption metrics.
· The city of Lusail, which epitomizes the government's Vision 2030 sustainable development plan, has a range of features, including water-sensitive landscaping plans and a district cooling system designed to save 65m tons of CO2 a year.
The Facility Management Landscape is highly competitive, with several local and international players active in the Qatar Market. International FM participants operate in the country through partnerships with local players. With the market expected to broaden and yield more opportunities, more players are expected to enter the market soon. The recent developments in the market are -
· April 2022 - Barwa real estate group QPSC announced the execution of the Fusion application on Oracle Cloud.
· Sep 2021 - Sodexo launches its new in-patient dining solution Touch2Order and cutting-edge digital food ordering application, One Klick, across the Middle East. The app incorporates AI systems to supplement patient, visitor, and medical staff experience in regional healthcare institutions. Sodexo has large patient comfort, safety, and clinical support and facilitates efficient and smooth operations in UAE, Qatar, Oman, and Kuwait healthcare sites.
Oct 2021 - Al Asmakh Facilities Management and A to Z Services announced their intention to merge to create one large integrated facility management company in Qatar. The merger will result in the combination of eight individual entities, four are from A to Z services, and AL Asmakh Facilities Management contributes four.
May 2021 - Sodexo partnered with Leanpath to launch the next-gen AI-driven waste reduction technology. The partnership aligns with the company's Better Tomorrow 2025 initiative to reduce waste.
Table of Contents
1.1 Study Assumption 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 Substitutes
4.2.5 Intensity Of Competitive Rivalry
4.3 Impact Of COVID-19 On The Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Emergence of Qatar as One of the Key Investment Destinations in the GCC
5.1.2 Growing Emphasis on the Outsourcing of Non-core Operations
5.1.3 Increase in Market Concentration Due to the Entry of Global Firms with Diversified Service Portfolios
5.2 Market Challenges/Restraints
5.2.1 Regulatory & Legal Changes
5.2.2 Growing Presence of Global Firms Collaborating with Regional Entities Pose a Challenge for Local Firms
6. MARKET SEGMENTATION
6.1 By Type of Facility Management
6.1.1 Inhouse Facility Management
6.1.2 Outsourced Facility Management
184.108.40.206 Single FM
220.127.116.11 Bundled FM
18.104.22.168 Integrated FM
6.2 By Offering
6.2.1 Hard FM
6.2.2 Soft FM
6.3 By End User
6.3.5 Other End Users
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Emcor Facilities Services WLL
7.1.2 Al Faisal Holdings (MMG Qatar)
7.1.3 Sodexo Qatar Services
7.1.4 Al-Asmakh Facilities Management
7.1.5 G4S QATAR SPC
7.1.6 Facilities Management & Maintenance Company LLC
7.1.7 Engie Cofely Mannai Facility Management
7.1.8 Como Facility Management Services
7.1.9 Amenity Facility Management & Services WLL
7.1.10 EFS Facilities Services
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Qatar Facility Management Market market is studied from 2020 - 2027.
What is the growth rate of Qatar Facility Management Market?
The Qatar Facility Management Market is growing at a CAGR of 7.9% over the next 5 years.
Who are the key players in Qatar Facility Management Market?
Al Faisal Holdings (MMG Qatar), Sodexo Qatar Services, Al-Asmakh Facilities Management, G4S Qatar, EFS Facilities Services are the major companies operating in Qatar Facility Management Market.