Market Trends of Middle East and Africa Soft Facility Management Industry
This section covers the major market trends shaping the MEA Soft Facility Management Market according to our research experts:
Infrastructural Development Activities Continue to Create New Opportunities for Soft Facility Managment Market
- Many regional governments focus on constructing new commercial projects such as smart cities, railways, hospitals, etc. In these smart city projects, the governments are planning to implement advanced automation technologies, which are expected to propel the soft facility management market demand over the next five years.
- Several government-driven initiatives are changing the dynamics of the soft facility management market, reshaping the healthcare landscape, and creating stronger institutional setup and effective regulatory frameworks to promote private sector investment in healthcare. On this note, Saudi Arabia plans to invest USD 66 billion in healthcare infrastructure and boost private sector participation by 2030.
- Long-term soft facility management contracts will create new growth opportunities for the market. For Instance, the UAE government announced that it plans to open new industries across UAE and the country's overall economic output to reach USD 82 billion by 2031.
- The Qatar Integrated Railways Project covers four metro lines in Doha, tram routes in West Bay, Lusail high-speed line, and dedicated freight airways. The Doha Metro is a rapid transit system that became operational in 2019. The future phase involves introducing an additional line (blue) that expands the existing metro with more than 60 stations, and the first expansion is to be completed by 2026. Such railway construction projects will create new growth opportunities for the soft facility management market.
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Saudi Arabia is Expected to Witness Significant Growth
- Saudi Arabia is one of the most prominent countries in the region concerning infrastructural development. According to the International Monetary Fund (IMF), the country's GDP amounted to USD 833.54 billion in 2021 and is expected to cross USD 1,072.44 billion by the end of 2027. Soft facility management services are also expected to grow significantly as infrastructure development projects contribute to their economic growth.
- Saudi Arabia is also working on smart city development projects. The Smart City initiative launched by the Saudi government has been pushing its construction sector strongly. Under the initiative, the government plans to install smart solid waste disposal, and environmental pollution monitoring tools, among others, in five Saudi cities. In addition, an investment of USD 500 billion in infrastructure development has been planned under Saudi Vision 2030. Such construction activities are expected to grow the soft facility management market further.
- According to the Saudi Arabian Royal Commission of Riyadh City report, Saudi Arabia plans to host 7,000 new businesses. With the influx of businesses, the region is expected to see a boost in demand for soft facility services. The increasing number of commercial establishments and technology integration are expected to drive market growth.
- According to the Saudi Gazette report, the value of the retail chain in the country is expected to grow at a CAGR of 12% during the forecast period. The growth of the commercial retail sector is anticipated to drive the demand for soft facility management services.
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