United Arab Emirates Facility Management Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The United Arab Emirates Facility Management Market is segmented by Services (Hard Services, Soft Services), by Type (Inhouse, Outsourced (Single, Bundled, Integrated FM)), by End-user (Commercial & Retail, Manufacturing & Industrial, Government, Infrastructural & Public Entities, Institutional) and by Cities.

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Market Snapshot

The UAE Facility Management Market
Study Period: 2020-2027
Base Year: 2021
CAGR: 6.72 %

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Market Overview

The UAE facility management market was valued at USD 6.07 Billion in 2021, and it is expected to grow at a CAGR of 6.72% during the forecast period 2022-2027. The market is set to reach USD 9.18 billion by 2027.

  • The demand for retail spaces in the United Arab Emirates increased in the past few years. A significant number of new retail construction is projected over the next two years to fill three Mall of Americas, 16.5 million square feet, according to real estate player JLL. This is expected to increase the amount of retail space in Dubai by near to 40%. In Dubai, local shopping centers and destination malls serve 3.3 million inhabitants.
  • Furthermore, the growing concentration of facility management service providers in the regions has further affected the companies' bottom lines. The surging emphasis on green building practices is increasing the demand for facility management in the United Arab Emirates. The country's government is also concentrating on smart cities, with plans to digitize up to 1000 government services and establish 2000 Wi-Fi hotspots.
  • Facility management services across Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, Umm al Quwain, and Ajman have matured with infrastructure development projects rising across the United Arab Emirates for economic growth. Furthermore, the country's logistics industry was expected to contribute to its economy by 8% in 2021. With strong growth in the e-commerce sector, the rapid infrastructure development of warehouses in the country further increased the demand for facility management services.
  • However, the growing stringent regulation over labor laws and immigrants compensating with the workforce further hindered the market growth. The government intends to train its population while creating jobs rather than importing human resources from foreign countries. Thus, minimum wage and share of job allocation have been set for each vendor, affecting the company's profit margins.
  • Many players providing some facility management services led to a contested market space with un-differentiated services, thus creating pressure on margins. Furthermore, pressure on margins and declining pay scales, along with restrictions on work permits and the cost of nationalization, are significantly challenging the FM vendors.
  • With the outbreak of COVID-19, the UAE facility management market is expected to witness a slight decline in growth. During the initial phase of the virus outbreak, the imposed lockdown led to a workforce shortage across the FM companies, as most were non-local. Furthermore, as the country's infrastructure spending slowed growth, Dubai and Abu Dhabi, for instance, had their lockdown measures.

Scope of the Report

Facility management (FM) consists of multiple disciplines to influence organizations' efficiency and productivity, including the management of building upkeep, utilities, maintenance operations, waste services, security, etc. The UAE facility management market is segmented by facility management (in-house facility management, outsourced facility management (single FM, bundled FM, integrated FM), by offering type ( hard FM, soft FM), and by end-user (commercial, institutional, public/ infrastructure, industrial).

By Services
Hard Services
Soft Services
By Type
Inhouse
Outsourced
Single
Bundled
Integrated FM
By End-user
Commercial and Retail
Manufacturing and Industrial
Government, Infrastructure, and Public Entities
Institutional
Other End-users
By Cities
Abu Dhabi
Dubai
Rest of United Arab Emirates

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Key Market Trends

Commercial End-User is Expected to hold significant Market Share

  • The commercial and retail segment is one of the prominent segments that contributes a good share of facility management in the United Arab Emirates, owing to the rapid infrastructure development and rising demand from hotels, retail outlets, malls, and office buildings in the country.
  • However, in the United Arab Emirates, Dubai accounts for most of the development projects being undertaken in the country's commercial sector. Moreover, the Dubai Expo 2020, which happened in March 2022, had USD 7.0 billion investments from the Dubai government across a range of infrastructure and related commercial projects, which also increased the demand for facility management services in the commercial sector.
  • Moreover, the commercial sector covers office buildings occupied by business services, such as corporate offices of manufacturers, IT and telecommunication, finance and insurance, property, and other service providers. The rise in the IT sector across the United Arab Emirates is expected to allow more commercial and facility management services expansion.
  • Furthermore, the telecom players focus on 5G deployments in the United Arab Emirates, creating significant opportunities for the region's facilities management sector. For instance, in June 2020, Etisalat UAE concentrated on non-standalone 5G deployments for the next two years before developing a standalone 5G network.
  • A survey conducted by JLL of commercial real estate customers of large companies globally, including the United Arab Emirates, has found that 67% of respondents were planning to invest in workplace mobility programs, where flexible office space supplies may have a significant part. This trend may act as a disruption to the market.
  • Additionally, economic growth, ongoing diversification, and a growing population– especially among high-worth individuals (HNIs)- have led to increased retail sales in the region. With the collective effort of the private and government institution, UAE's retail has seen a massive transformation in the last few years.
UAE Facility Management Market

Dubai Accounts for Major Market Growth

  • Among the country's cities, Dubai accounts for most of the development projects undertaken in the country's commercial sector. In May 2022, Dubai Land Department (DLD) witnessed a growth of 41% in commercial office sales year-over-year from May 2021, with an 87% increase in the value of properties sold, as more end users are leveraging favorable business conditions for regional and local growth. The commercial real estate sector's strong growth is expected to positively impact the demand for facility management services.
  • Dubai accounts for most of the development projects undertaken in the country's commercial sector. Moreover, hosting "Dubai Expo 2020," which was conducted in 2022, required substantial investments from the Dubai government across a range of infrastructure and related commercial projects, which may further increase the demand for facility management services in the commercial sector. Furthermore, the rise of E-commerce has led to the construction of new warehouses and logistics centers, driving the demand for FM services.
  • The growth of the Dubai region is mainly due to increased investments from the government and is expected to influence the demand for facility management in this region positively. Furthermore, improvement in tourism activities in this region post-pandemic is expected to contribute to the growth in the hotel industry, thereby creating ample demand for facility management services.
  • Dubai could aim as a smart city by 2021, leading to the proliferation of information technology (IT) and consulting firms. Due to this and the country's economic diversification initiatives, many new office complexes have been constructed, pushing the demand for facility management services in this sector. Furthermore, in line with the Smart Dubai 2021 plan, ServeU implemented its digital roadmap by focusing on business enhancement via operational performances.
  • Furthermore, the outsourcing trend is gaining traction in different industries across Dubai, offering growth prospects for the industry. In addition, the UAE government is encouraging green construction activity. For instance, Dubai has started implementing its Clean Energy Strategy to achieve 75% clean energy by 2050. Green targets could include 50% clean energy by 2050 and treatment of 75% waste by 2021, as stated by the EcoMENA Organization. These initiatives are expected to increase the region's demand for facility management services.
  • Facility management firms amid COVID-19 have been preparing to embrace a greater role by emerging as strategic partners in the safe re-opening of offices. Likewise, adopting appropriate resources, strategies, and technologies have substantially grown.
  • The resumption of activities and occupants' confidence to operate on a secured premise are some drivers of booming FM services in the city. The segment reports substantial growth over the forecasted period with implementations such as connected building technologies.
UAE Facility Management Market

Competitive Landscape

The UAE facility management market is highly competitive, with several domestic and international players active in the region. International 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. Key players include EFS Facilities Services Group, Imdaad LLC, and Enova Facilities Management Services LLC.

  • February 2022 - Farnek, a smart and green facilities management (FM) firm based in the United Arab Emirates, created a new smart FM technology solutions company. The HITEK solution 4.0, developed in-house, was initially launched in Q3 2021, connecting people, assets, and spaces from multiple remote sites, using intelligent analytical platforms for cleaning, security, and maintenance, so they could be smartly centrally managed and monitored by leveraging the Internet of Things (IoT), Building Management Systems (BMS), Cloud, Machine Learning (ML), and Artificial Intelligence (AI) based technologies.
  • August 2021 - ServeU Facilities Management announced its expansion by launching a consumer (B2C) segment from enterprises in the emirate. A new service called Home Essentials would give customers access to cost-effective facility management (FM) services for their homes.

Recent Developments

  • April 2022 - Etihad Rail, the UAE’s National Rail network, and Dubai Industrial City, a manufacturing and logistics hub part of TECOM Group, would host an advanced freight terminal spread across 5.5 million sqft. The rail freight terminal would complement Dubai and the UAE’s advanced infrastructure and state-of-the-art transport network, cementing the nation’s position as a gateway to the Middle East, North Africa, and South Asia (MENASA).
  • March 2022 - JLL could land a facilities management contract with Edgnex. Edgnex turned to JLL for its facility management needs as it pursued the first phase of its strategy to deliver data center facilities across unique and diverse markets locally and globally and later the other facility management services.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power Of Suppliers

      2. 4.2.2 Bargaining Power Of Buyers

      3. 4.2.3 Threat Of New Entrants

      4. 4.2.4 Threat Of Substitutes

      5. 4.2.5 Intensity Of Competitive Rivalry

    3. 4.3 Base Indicator Analysis

      1. 4.3.1 Construction Activities In United Arab Emirates

      2. 4.3.2 Expansion Of Key International FM Services

      3. 4.3.3 Major Contracts Awarded In Key Cities

    4. 4.4 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Construction Boom Owing to the Growing Clout of Multinational Conglomerates

      2. 5.1.2 Increasing Emphasis on Green Building Practices​

      3. 5.1.3 Growing Demand for Soft FM Practices​

    2. 5.2 Market Challenges/Restraints

      1. 5.2.1 Regulator and Legal Challenges

      2. 5.2.2 Growing Concentration of FM Vendors to Impact Margins

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Services

      1. 6.1.1 Hard Services

      2. 6.1.2 Soft Services

    2. 6.2 By Type

      1. 6.2.1 Inhouse

      2. 6.2.2 Outsourced

        1. 6.2.2.1 Single

        2. 6.2.2.2 Bundled

        3. 6.2.2.3 Integrated FM

    3. 6.3 By End-user

      1. 6.3.1 Commercial and Retail

      2. 6.3.2 Manufacturing and Industrial

      3. 6.3.3 Government, Infrastructure, and Public Entities

      4. 6.3.4 Institutional

      5. 6.3.5 Other End-users

    4. 6.4 By Cities

      1. 6.4.1 Abu Dhabi

      2. 6.4.2 Dubai

      3. 6.4.3 Rest of United Arab Emirates

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 EFS Facilities Services Group

      2. 7.1.2 Imdaad LLC

      3. 7.1.3 Enova Facilities Management Services LLC

      4. 7.1.4 Emrill Services LLC

      5. 7.1.5 Deyaar Facility Management LLC (deyaar Development PJSC)

      6. 7.1.6 Serveu Facilities Management

      7. 7.1.7 Marafeq Facilities Management LLC

      8. 7.1.8 Etisalat Facilities Management LLC

      9. 7.1.9 Farnek Services LLC

      10. 7.1.10 Engie Cofely Energy Services LLC (ENGIE SA)

    2. *List Not Exhaustive
  8. 8. VENDOR POSITIONING ANALYSIS

  9. 9. INVESTMENT ANALYSIS

  10. 10. FUTURE OF THE MARKET

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Frequently Asked Questions

The United Arab Emirates Facility Management Market market is studied from 2020 - 2027.

The United Arab Emirates Facility Management Market is growing at a CAGR of 6.72% over the next 5 years.

Imdaad LLC , Enova Facilities Management Services LLC​, Emrill Services LLC​, Serveu LLC, EFS Facilities Services Group are the major companies operating in United Arab Emirates Facility Management Market.

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