Market Trends of Oman Facility Management Industry
Outsourced FM is expected to Hold Significant Market Share
- Outsourced FM is expected to witness significant traction in the Oman Facility Management market over the forecast period. In the sheer volume of contracts, single, bundled, and the number of integrated FM services are increasingly being demanded in Oman. The same benefits are reduced costs, time service delivery, contractual service, no equipment maintenance, etc.
- Further, single FM services are expected to gain a significant share in the outsourced segment. Businesses choose a single service provider because they can be assured of superior service quality and efficiency. Using several service providers is a time-consuming activity that necessitates the management of multiple vendors and the associated hazards. This helps create significant opportunities for the market vendors to expand single FM services in the country.
- Additionally, single FM service providers with in-depth industry knowledge regularly update their service by integrating the latest trends and technological developments in their specific industries, which is an advantage in adopting this FM service approach, which would fuel the market growth.
- The rising GDP also drives the demand for Outsourced FM services in the country. For instance, according to the data from the IMF, the Gross Domestic Product (GDP) in current prices in Oman is expected to reach USD 95.51 billion in 2026 compared to USD 63.37 billion in 2020.
- Moreover, the growth in shopping malls and supermarkets nationwide further boosted the demand for outsourced facility management services. For instance, the opening of the Mall of Oman in 2021, with 145,000 sqm of retail space, various dining outlets, and a range of exciting lifestyle experiences, further led to the market's growth. Further, in February 2023, Majid Al Futtaim inaugurated the Mall of Oman.
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Commercial Segment is Expected to Dominate the Market
- The FM services in the commercial sector include facility management services in the buildings of convenience stores, multichannel retailers, IT and telecommunication offices, corporate offices of finance and insurance companies, etc. Oman has developed an excellent infrastructure to meet the international and external requirements for economic development.
- As the country's commercial industry gathers the benefits of its long-term approach to innovation, this has defined the sectoral growth over the forecasted period. The country's healthcare system has reported significant achievements in healthcare services and preventive and curative medicine in the last four decades.
- Moreover, the country is witnessing significant attraction in the commercial segment, with the country emphasizing building ICT infrastructure to reduce the digital divide through its National Broadband Strategy, which focuses on providing broadband service to more than 90% of urban areas by 2030, with overall penetration in the country reaching 75%. Further, the growing investments in the construction of vital ICT infrastructure and the improvement of various e-government services are expected to drive the IT and telecommunication companies in the region to establish their offices, thus positively impacting the market's growth.
- The country has observed significant construction projects in the past few years. According to World Bank, it is estimated that 7,857 businesses will be registered in the country by the end of 2024. With a forward outlook toward foreign investments and commercial service players' growth, the country has observed many construction projects in the past few years.
