Surging Construction Activities Driving Demand for Facility Management in Saudi Arabia

With the expansion of the infrastructure industry, the demand for facility management services is surging in Saudi Arabia. The country has witnessed the launch of several construction projects in the recent years, and this trend will continue in the coming years, due to strong government support and the huge investments being made in this industry. For example, the government announced in January 2019 that it intends to invest $426 billion by 2030 for developing industries and infrastructure in the country.

These infrastructural development projects, once completed, will massively push up the demand for facility management services in the country. Besides, the booming tourism industry is also positively impacting the demand for these services in the country. This is because of the soaring requirement for maintaining resorts and hotels, shopping complexes, and various other facilities and also for catering and security, on account of the expansion of the tourism industry in the country.

Furthermore, the Ministry of Tourism in the country announced in June 2020 that it plans to launch a tourism development fund with an initial investment of $4 billion. Hence, it is safe to say that the expansion of the construction and tourism industries is fueling the growth of the Saudi Arabian facility management market, with the market revenue expected to grow from $31,264.1 million in 2020 to $87,216.0 million by 2030.

Amongst these, the property category held the largest market share in 2020, due to the huge demand for routine maintenance and asset management services and for the advertisement of several leasable properties. When mode is taken into consideration, the market is categorized into outsourced and in-house. Between these, the outsourced category will demonstrate the faster growth in the Saudi Arabian facility management market in the upcoming years, as per the estimates of the market research firm, P&S Intelligence. 

Thus, it is clear that due to the increasing construction and infrastructural development activities and the thriving tourism industry, the demand for facility management services will skyrocket in Saudi Arabia in the coming years.

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