United Arab Emirates Facility Management Market Size

UAE Facility Management Market Analysis

The United Arab Emirates Facility Management Market size is estimated at USD 7.62 billion in 2024, and is expected to reach USD 10.53 billion by 2029, growing at a CAGR of 6.68% during the forecast period (2024-2029).

The main things that are driving the need for facility management in the UAE are the growing number of tourist-oriented railways, airports, transit facilities, hotels, etc., and the strict rules about safety, cleanliness, and hygiene in the UAE.

• 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 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 1,000 government services and establish 2,000 Wi-Fi hotspots.
• Moreover, green buildings require FMs to efficiently manage air quality, energy usage, water consumption, and waste. Low operating costs, low maintenance costs, low development costs, a healthier indoor environment, and enhanced durability are the characteristics of a green building. Owing to the increasing demand for sustainable facility management solutions, market players in the region significantly improved their offerings and gained opportunities to showcase them further.
• Furthermore, Dubai's strategic location between Europe and Asia serves the East and the West, offering optimum trading conditions for the Emirate. To facilitate trade and e-commerce operations, Dubai has executed various crucial initiatives to develop its technology and infrastructure to implement an excellent logistics infrastructure and a well-integrated transport system. Since e-commerce as a whole is growing quickly, and warehouses are being built quickly in the country, the demand for facility management services is also going up.
• However, the increasing stringency of labor laws and immigrants compensating with the workforce hampered market growth.
• With the outbreak of COVID-19, the UAE Facility Management Market witnessed a growth decline. Also, it affected the profits and liquidity of businesses by increasing procurement expenses and capital costs while simultaneously forcing customers to defer purchases, thus reducing the income of facility management companies.