Saudi Arabia Facility Management Market Size
| Study Period | 2022 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 27.58 Billion |
| Market Size (2029) | USD 49.66 Billion |
| CAGR (2024 - 2029) | 12.48 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Facility Management Market Analysis
The Saudi Arabia Facility Management Market size is estimated at USD 27.58 billion in 2024, and is expected to reach USD 49.66 billion by 2029, growing at a CAGR of 12.48% during the forecast period (2024-2029).
The International Facility Management Association (IFMA) defines facility management as combining a physical workplace with an organization's workforce and work, including equipment upkeep, space planning, and portfolio forecasting. These services include leadership and strategy, real estate and property management, project management, quality, human aspects, emergency planning and business continuity, and environmental sustainability.
- There are various trends that may propel facility management in the Saudi region. For example, the Internet of Things (IoT) encompasses physical equipment and sensors that leverage the Internet to communicate with Facility Management (FM) teams. These devices produce performance data, serving as an early warning system for facility managers. This allows FMs to oversee and manage equipment, providing real-time operational insights remotely. When integrated with FM software, like a computerized maintenance management system (CMMS), IoT may swiftly identify issues (e.g., office temperature discrepancies), autonomously generate and allocate work orders, and monitor their completion.
- For instance, in March 2024, SIERRA unveiled its eFACiLiTY Enterprise Facility Management Software, touted as the most comprehensive computer-aided facilities management (CAFM) and integrated workplace management system (IWMS) globally. The software operates on a Software as a Service (SaaS) subscription model hosted on Microsoft Azure. It also offers the eFACiLiTYVirtual Assistant, an advanced multilingual AI/ML solution that leverages the Maintenance Guru. This intelligent feature diagnoses issues by navigating through our knowledge base and streamlines the creation of precise work orders with a single click.
- The Saudi Arabian government is rapidly investing in infrastructure projects to diversify the economy. These projects include air transport, urban planning, logistic centers, tourism, and several others. This creates fertile ground for facility management services as they are required to maintain these facilities and any new infrastructure.
- Outsourced FM has been successfully used in various industries, including the public sector, retail, professional services, healthcare, technology, logistics, manufacturing, and education. The areas covered by FM services vary widely, mainly depending on the type and size of the company and the sector in which it operates.
- The lack of awareness of the importance of facility management poses a significant challenge to the market studied. Enterprises in the country are trying to focus on their core businesses, but they are reluctant to outsource FM activities as a part of the vision to focus on the core. Talent retention and acquisition pose considerable challenges in the Saudi facility management market. The demand for skilled facility management professionals, including technicians, engineers, and skilled laborers, continues to grow with the growing infrastructure and real estate sectors. However, retaining and attracting talent in a competitive job environment may be difficult.
- According to the International Monetary Fund (IMF), the country's GDP amounted to USD 833.54 billion in 2021. It is expected to cross USD 1,072.44 billion by the end of 2027. Facility management services are also expected to grow significantly as infrastructure development projects heavily contribute to the country's economic growth.
Saudi Arabia Facility Management Market Trends
In-house Facility Management to be the Fastest-growing Type of FM
- In-house facility management refers to a wide range of tasks and responsibilities related to maintaining and operating a company’s buildings, equipment, and infrastructure by a dedicated team of employees hired directly by the company instead of outsourcing to external vendors.
- Government initiatives such as Saudi Vision 2030 focus on diversifying the economy and infrastructure development, fueling the growth of construction projects requiring facility management services.
- According to the Ministry of Finance, the budget allocation for housing, infrastructure, and transportation sectors in FY 2023 was reported to be around SAR 34 billion (USD 9.06 billion). Increasing investments in commercial buildings and mega-projects like NEOM are expected to drive demand for in-house facility management services to maintain and operate buildings, utilities, and other infrastructure needs.
- Government regulations in the healthcare and finance sectors emphasize an increased focus on facility control, making in-house management a strategic consideration for compliance.
- Several factors, such as increased economic activity, consumer spending, and tourism activities in Saudi Arabia, have increased the occupancy of hotels and commercial spaces. This has increased the need for better management of the facilities, thus driving the growth of the segment. In June 2023, the Minister of Tourism stated that the tourism sector’s contribution to Saudia Arabia’s GDP reached 4.45%, and the country would invest over USD 800 million in the upcoming ten years. This growth and plans of investment in the tourism sector are likely to benefit the facility management industry with demand for in-house facility management services.
- The growing number of companies looking to consolidate in the facility management market and rising investments in large-scale infrastructure projects are expected to drive the demand for in-house facility management services in the country. Saudi Arabia is home to many Muslim holy sites, resulting in many visitors and travelers each year and creating opportunities in the hospitality and construction industry.
- Overall, factors such as increased economic activity, consumer spending, and tourism activities have led to an increase in the occupancy of large residential layouts/projects, hotels, and commercial spaces, resulting in an increased need for better facility management.
Manufacturing and Industrial Industry is Expected to Witness Significant Growth
- The manufacturing and industrial sector covers major applications across the manufacturing industry, such as food and beverage, electronics, automotive, mining, and oil and gas industries.
- The Saudi Arabian manufacturing sector stands out as one of the region's fastest-growing, driven by pivotal government projects, favorable tax rates, and regulations that promote automation and sector advancement. The nation, eyeing a transition from its oil-centric economy, is collaborating with Jordan and Egypt on a monumental venture: a USD 500 billion industrial zone, NEOM, powered entirely by renewable energy. NEOM's strategic focus on energy, water, biotechnology, food, and advanced manufacturing is set to significantly boost the demand for facility management services across the country.
- Several projects are spearheading the integration of advanced control systems and automation in infrastructure development. The manufacturing sector's pivot towards Industry 4.0 underscores a proactive stance in embracing advanced technologies to enhance production efficiency and quality, propelling the country's FM market growth. A case in point, in November 2023, the Vedanta group, via its subsidiary Malco Energy Limited, inaugurated a new copper unit in Saudi Arabia, investing SAR 1 million. In an official filing, the group revealed the new entity's name as Vedanta Copper International (VCI) Business Limited.
- In October 2023, South Korean automaker Hyundai announced that it teamed up with Saudi Arabia's Public Investment Fund (PIF) to establish an automobile manufacturing factory in Saudi Arabia. PIF would own 70% of the company, and Hyundai would own 30%. This facility aims to establish an annual production capacity of roughly 50,000 automobiles. Production at this factory is expected to start by 2025.
- Based on the type of offering, the manufacturing and industrial sector in Saudi Arabia is expected to witness increased demand for soft FM, driven by the need for efficient facility management, workplace safety, and adherence to environmental regulations.
- Thus, the Saudi manufacturing and industrial facility management sector is characterized by a resilient, innovative, and adaptable environment. According to Tophotelprojects.com, in Saudi Arabia 2022, 24 out of 167 planned development of hotel projects were expected to be completed by the year-end. Forty projects, which means 24% of total hotel projects, are due to be completed by 2025 at the earliest. The strategic significance of facility management services in preserving operational effectiveness, safety, and sustainability is expected to become even more apparent within this vital and dynamic industry as the nation continues on its trajectory of industrial growth.
Saudi Arabia Facility Management Industry Overview
The Saudi Arabian facility management market is fragmented, with the presence of major players like Initial Saudi Group (Alesayi Holding), EMCOR Saudi Company Limited, Almajal G4S (Allied Universal), SETE Energy Saudia for Industrial Projects Ltd (Sete Saudia), and Zamil Operations and Maintenance Company (Zamil Group). Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.
- November 2023 - In a strategic sustainability partnership with Enova, Saudi Arabia's National Energy Services Company, TARSHID, launched energy-saving guarantee projects in public sector buildings. Spearheading this initiative, TARSHID collaborates with Enova to conduct audits and enhance energy efficiency at various sites, including those of the Saudi Standards, Metrology, and Quality Organization (SASO) and the Ministry of Municipal, Rural Affairs, and Housing (MOMRAH).
- September 2023 - AlesayiHolding Group strived toward growth and diversification by acquiring 85% of Initial Saudi Group, a leading facilities and workforce management group with over 40 years of operating experience. The agreement was signed by AlesayiHolding Group CEO and Initial Saudi Group's board member. Initial Saudi Group operates through its two major firms, Initial Facilities Management and Workforce Saudia. With over 25,000 associates, Initial provides various services across Saudi Arabia, including cleaning, security, engineering, support, pest control, and landscaping. The acquisition is driven by AlesayiGroup's primary focus on extending and diversifying its service offerings to cater to the growing demand for workforce services for the rising industries and emerging possibilities within the Saudi Vision 2030 framework, along with enabling seamless integration between the Group's sectors and companies.
Saudi Arabia Facility Management Market Leaders
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Initial Saudi Group (Alesayi Holding)
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EMCOR Saudi Company Limited
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Almajal G4S (Allied Universal)
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SETE Energy Saudia for Industrial Projects Ltd (SETE Saudia)
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Zomco (ZAMIL Operations & Maintenance) (ZAMIL Group)
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Facility Management Market News
- June 2024: National Building and Marketing Co. (NBM), based in Saudi Arabia, recently inked a significant deal valued at SAR 350 million (USD 93.33 million) with Al-Fayzia Real Estate Development Co. The contract, specifically for the 'Granada Riyadh Project,' entails NBM overseeing infrastructure and superstructure development. This includes constructing, finishing, and supplying all building materials, managing administrative tasks, and ensuring all services are in place for the project's investment readiness.
- January 2024: The Kingdom allocated more than USD 186 billion to the Saudi Green Initiative and tremendous resources, time, and effort to tackle climate change. The Public Investment Fund (PIF) is a prime example of using idle assets for national development, focusing on generating returns and stimulating growth. The government has prioritized 13 sectors for profitability to accelerate diversification across several sectors. PIF deployed the most significant fresh capital in 2023, investing over USD 35 billion.
Saudi Arabia Facility Management Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
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4.1 Market Overview and Key Trend Analysis
- 4.1.1 Growing Focus on Sustainability
- 4.1.2 Technology Integration
- 4.1.3 Integration of Facility Management in Building Design
- 4.1.4 Increasing Focus on Outsourcing
- 4.1.5 Impact of COVID-19 on Soft FM Services
- 4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3 Industry Ecosystem Analysis
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4.4 Key Base Indicator Analysis
- 4.4.1 Commercial Real Estate Sector in Saudi Arabia
- 4.4.2 Office Supply Uptake and Occupancy Rates
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4.5 Comparative Analysis: KSA FM Market in GCC Perspective
- 4.5.1 Ranking Analysis of KSA FM Market within GCC
- 4.5.2 Maturity Index, Key Similarities and Differentiators with other Key Economies of GCC
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Growing Demand for IFM and Outsourcing of Non-core Operations from Emerging Verticals
- 5.1.2 Emphasis On Green And Sustainable Building Practices
- 5.1.3 Renewed Emphasis on Workplace Optimization and Productivity
- 5.1.4 Giga and Megaprojects in KSA driving the demand for FM Services
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5.2 Market Restraints and Challenges
- 5.2.1 Cost Optimization Problems
- 5.2.2 Lack of Specialized Talents
- 5.2.3 Growing Competition Expected to Impact Profit Margins of Existing Vendors
6. MARKET SEGMENTATION
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6.1 By Service Type
- 6.1.1 Hard Services
- 6.1.1.1 Asset Management
- 6.1.1.2 MEP and HVAC Services
- 6.1.1.3 Fire Systems and Safety
- 6.1.1.4 Other Hard FM Services
- 6.1.2 Soft Services
- 6.1.2.1 Office Support and Security
- 6.1.2.2 Cleaning Services
- 6.1.2.3 Catering Services
- 6.1.2.4 Other Soft FM Services
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6.2 By Offering Type
- 6.2.1 In-house
- 6.2.2 Outsourced
- 6.2.2.1 Single FM
- 6.2.2.2 Bundled FM
- 6.2.2.3 Integrated FM
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6.3 By End-user Industry
- 6.3.1 Commercial, Retail and Restaurants
- 6.3.2 Manufacturing And Industrial
- 6.3.3 Government, Infrastructure, And Public Entities
- 6.3.4 Institutional
- 6.3.5 Other End Users (includes Multi-Tenant Houses within Residential Sector)
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6.4 By Region
- 6.4.1 Jeddah
- 6.4.2 Riyadh
- 6.4.3 Rest of Saudi Arabia
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 Initial Saudi Group
- 7.1.2 Saudi Emcor Company Limited
- 7.1.3 almajal G4S
- 7.1.4 Setesaudia
- 7.1.5 Zamil Operations And Maintenance Company (Zamil Group)
- 7.1.6 Samama Holding Group
- 7.1.7 Khidmah Saudi Arabia (Aldar Properties PJSC)
- 7.1.8 Engie Solutions Company Limited (Engie SA)
- 7.1.9 Nesma United Industries
- 7.1.10 Al-yamama Company
- 7.1.11 Olive Arabia Co. Ltd
- 7.1.12 Al Tamimi
- 7.1.13 Saudi Catering
- 7.1.14 Al Ghosaibi
- 7.1.15 Al Suwaidi
- 7.1.16 Al Zamil
- 7.1.17 Saudi Services Co. Ltd.
8. VENDOR POSITIONING ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Saudi Arabia Facility Management Industry Segmentation
Facility management services involve building upkeep, utilities, maintenance operations, waste services, and security. These services are divided into hard and soft facility management services. Hard services comprise mechanical and electrical maintenance, fire safety and emergency services, building management system controls, elevator and lift maintenance, and conveyor maintenance. Soft services include cleaning, recycling, security, pest control, handyperson services, ground maintenance, and waste disposal.
The Saudi Arabia facility management market is segmented by service type (hard services (asset management, MEP and HVAC services, fire systems and safety, and other hard FM services), soft services (office support and security, cleaning services, catering services, and other soft FM services)), offering type (in-house facility management and outsourced facility management (single FM, bundled FM, and integrated FM)) and end-user industry (commercial, retail, and restaurant, manufacturing and industrial, government, infrastructure and public entities, institutional, and other end-user industries), and by region (Jeddah, Riyadh and the rest of Saudi Arabia). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Service Type | Hard Services | Asset Management |
| MEP and HVAC Services | ||
| Fire Systems and Safety | ||
| Other Hard FM Services | ||
| By Service Type | Soft Services | Office Support and Security |
| Cleaning Services | ||
| Catering Services | ||
| Other Soft FM Services | ||
| By Offering Type | In-house | |
| Outsourced | Single FM | |
| Bundled FM | ||
| Integrated FM | ||
| By End-user Industry | Commercial, Retail and Restaurants | |
| Manufacturing And Industrial | ||
| Government, Infrastructure, And Public Entities | ||
| Institutional | ||
| Other End Users (includes Multi-Tenant Houses within Residential Sector) | ||
| By Region | Jeddah | |
| Riyadh | ||
| Rest of Saudi Arabia |
Saudi Arabia Facility Management Market Research FAQs
How big is the Saudi Arabia Facility Management Market?
The Saudi Arabia Facility Management Market size is expected to reach USD 27.58 billion in 2024 and grow at a CAGR of 12.48% to reach USD 49.66 billion by 2029.
What is the current Saudi Arabia Facility Management Market size?
In 2024, the Saudi Arabia Facility Management Market size is expected to reach USD 27.58 billion.
Who are the key players in Saudi Arabia Facility Management Market?
Initial Saudi Group (Alesayi Holding), EMCOR Saudi Company Limited, Almajal G4S (Allied Universal), SETE Energy Saudia for Industrial Projects Ltd (SETE Saudia) and Zomco (ZAMIL Operations & Maintenance) (ZAMIL Group) are the major companies operating in the Saudi Arabia Facility Management Market.
What years does this Saudi Arabia Facility Management Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Facility Management Market size was estimated at USD 24.14 billion. The report covers the Saudi Arabia Facility Management Market historical market size for years: 2022 and 2023. The report also forecasts the Saudi Arabia Facility Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Facility Management Industry Report
Statistics for the 2024 Saudi Arabia Facility Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Facility Management analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
