Saudi Arabia Facility Management Market Report Probes the USD billion Size, Share, Growth Report and Future Analysis by 2033

Key Insights

The Saudi Arabia Facility Management Market size was valued at USD 23.54 USD billion in 2023 and is projected to reach USD 41.94 USD billion by 2032, exhibiting a CAGR of 8.6 % during the forecast period. Facility management (FM) is a strategic discipline that has the core responsibility of operating assets and infrastructure within the organization efficiently. It comprises of a wide array of services, Mining, cleaning, safety, and space use among others. The FM can be distinguished into two types which include the so-called hard FM and the so-called soft FM ( hard FM - material maintenance and soft FM - e.g. catering and janitorial services). The main elements of FM include in-touch planning of the maintenance process, finance allocation, and conformity with regulations. It empowers industries like commercial real estate, healthcare, and hospitality and covers various aspects. The effects of an FM that works as it should are diversified, that is, by saving on costs due to reducing waste, increasing the level of security and safety, improving productivity, and providing users with a better experience. FM is the backbone of advanced facilities, as enables optimal functioning of facilities that support the organization to attain its strategic objectives and promote a healthy environment for success.

Saudi Arabia Facility Management Trends

• Growing demand for outsourced facility management services
• Increasing adoption of technology in facility management
• Rising awareness of sustainability and environmental concerns

Driving Forces: What's Propelling the Saudi Arabia Facility Management Market

• Government initiatives: The Saudi Arabian government's Vision 2030 plan emphasizes the development of smart cities and infrastructure, which is driving the demand for facility management services.
• Economic diversification: The government's efforts to diversify the economy away from oil are creating new opportunities for facility management companies in non-oil sectors such as healthcare, education, and tourism.
• Population growth: The growing population of Saudi Arabia is increasing the demand for residential, commercial, and public buildings, which in turn is driving the need for facility management services.

Challenges and Restraints in the Saudi Arabia Facility Management Market

• Lack of skilled labour: The shortage of skilled labour in the facility management industry is a major challenge for companies operating in Saudi Arabia.
• Competition from international companies: International facility management companies with global experience and expertise are increasingly entering the Saudi Arabian market, posing a competitive threat to local companies.

Emerging Trends in Saudi Arabia Facility Management

• Adoption of artificial intelligence (AI) and the Internet of Things (IoT): The use of AI and IoT in facility management is becoming increasingly common. These technologies can help automate tasks, improve efficiency, and reduce costs.
• Sustainability and environmental concerns: Facility management companies are increasingly focused on sustainability and environmental concerns. This is driving the adoption of green cleaning products, energy-efficient equipment, and waste reduction programs.

Growth Catalysts in Saudi Arabia Facility Management Industry

• Government support: The Saudi Arabian government remains committed to the development of the facility management industry through initiatives like the Saudi Green Building Forum, National Transformation Program, and Vision 2030. These initiatives emphasize sustainability, energy efficiency, and smart building technologies, driving demand for facility management services.
• Private sector investment: Private sector companies recognize the growth potential in the facility management industry and are actively investing in the sector. The demand for outsourced services continues to rise, and private companies see the opportunity to capitalize on the profit potential.
• Growing demand for specialized services: The increasing complexity of infrastructure and advancements in technology have led to a growing demand for specialized facility management services. This includes expertise in areas such as energy management, waste management, and health and safety protocols.

Market Segmentation: Saudi Arabia Facility Management Analysis

Service Type

• Hard Services
• Soft Services
• Other Services

Industry Vertical

• Healthcare
• Government
• Education
• Military & Defense
• Real Estate
• Others

Leading Players in the Saudi Arabia Facility Management Market

• Sodexo (France) 
• CBRE Group Inc. (U.S.) 
• Compass Group PLC (U.K.) 
• Cushman & Wakefield (U.S.)
• Tenon Group (India) 
• Dussmann Group (Deutschland) 
• Majid Al Futtaim – ENOVA (United Arab Emirates) 
• MEEM Facility Management Co. (Saudi Arabia) 
• MUHEEL SERVICES (Saudi Arabia) 
• TAMAM (Saudi Arabia) 

Significant Developments in the Saudi Arabia Facility Management Sector

• In 2022, Sodexo acquired Al Hokair Group's facility management business in Saudi Arabia.
• In 2022, CBRE Group Inc. launched a new facility management service called "CBRE Insights."
• In 2021, Compass Group PLC expanded its facility management operations in Saudi Arabia by acquiring the Alpha Catering Group.

Comprehensive Coverage Saudi Arabia Facility Management Market Report

The comprehensive coverage report provides an in-depth analysis of the Saudi Arabian facility management market, including its market size, growth drivers, challenges, and opportunities. It offers profiles of key players, industry trends, and insights into emerging technologies shaping the sector. The report serves as a valuable resource for industry participants, investors, and stakeholders seeking to gain a competitive edge in this dynamic market.

Regional Insight

The Saudi Arabian facility management market is primarily concentrated in the major urban centers of Riyadh, Jeddah, and Dammam. However, there is an increasing demand for these services in other regions, particularly in the Eastern Province and the Northern Region. This growth is attributed to factors such as rapid urbanization, increasing construction activity, and a growing awareness of the benefits of professional facility management practices.