A surge in construction activities and growth in the tourism industry in Saudi Arabia are expected to expand the Saudi Arabian facility management market at a 9.3% CAGR during 2020–2030 (forecast period). At this rate of advancement, the market size is expected to rise from $32,480.4 million in 2019 to $76,244.9 million by 2030. Additionally, the increasing focus of the Saudi government toward economic diversification is also benefitting the market.
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The government of Saudi Arabia is attempting to reduce its dependency on the oil & gas sector by developing a long-term economic plan that incorporates economic reform plans, such as 'Saudi Vision 2030'. Under this initiative, the government aspires to develop public sectors that encompass tourism, health, recreation, infrastructure, and education. The development of these sectors will increase the adoption of several maintenance services, thereby, propelling the growth of the market.
Based on the type segment, the Saudi Arabian facility management market is bifurcated into hard and soft services. Of these, the demand for hard services will rise more rapid than soft services, as they are highly applied in professional services. With the expansion of the infrastructure sector and support from the government, the Saudi Arabian market is expected to generate more revenue from the hard services, in comparison to soft services.
As for the strategic measures, players in the market are focusing on winning client deals. Keeping up with the trend, Tadbeir Company Ltd. signed a contract with Emaar Middle East LLC, in December 2018, to offer facility management services at Jeddah Gate. The company will provide its services at a residential tower and Emaar square that host several restaurants, showrooms, buildings, and a public plaza that spreads across an area of 413,000 square meters.
Other players in the Saudi Arabian facility management market include Nesma Trading Co. Ltd., Petrojana, EMCOR Group Inc., Al Borj International, Khidmah LLC, Interserve plc., and Engie S.A. All these players aim at bagging contracts for large infrastructure facilities. In the same vein, EMCOR Group Inc. entered into a contract with Tatweer Buildings Company to offer facility management services for three years. EMCOR would provide facility management services to 2,714 Saudi schools, including those in the cities of Madinah, Mecca, and Jeddah.
Taking into account all the growth drivers and market trends, it can be projected that the market holds a strong potential for growth in Saudi Arabia.
