Saudi Arabia Facility Management Market Size (2024 - 2029)

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, at a CAGR of 12.48% during the forecast period (2024-2029).

• The International Facility Management Association (IFMA) defines facility management as the integration of a physical workplace with an organization's workforce and operations. This encompasses equipment maintenance, space planning, and portfolio forecasting. Facility management services span leadership and strategy, real estate and property management, project management, quality assurance, human considerations, emergency planning, business continuity, environmental sustainability, and more.
• Saudi Arabia's facility management market is poised for accelerated decarbonization, offering dynamic growth opportunities for industry players. The Kingdom is making significant strides in its clean energy transition, a commitment underscored by the Saudi Green Initiative, which targets net zero emissions by 2060.
• In Saudi Arabia, there's a pronounced shift in facility management services towards eco-friendly and sustainable building practices. This movement is largely driven by government initiatives promoting responsible environmental practices and boosting energy efficiency in building construction and operations.
• Saudi Arabia's facility management market is booming, fueled by a renewed focus on workplace optimization and productivity. This growth aligns with the country's Vision 2030 initiative, which seeks economic diversification and modernization across various sectors. Consequently, there's been a surge in investments in real estate, infrastructure, and corporate environments, driving up the demand for adept facility management services.
• Despite a youthful local population in Saudi Arabia, many aspiring professionals in the facility management industry lack the requisite qualifications and experience. This challenge is magnified by the industry's demand for advanced technical skills. Consequently, talent acquisition and retention emerge as significant hurdles in the KSA Facility Management market. As the infrastructure and real estate sectors expand, the need for skilled facility management professionals—ranging from technicians to engineers—grows. Yet, in a competitive job landscape, attracting and retaining this talent proves challenging.
• Post-COVID-19, facility management, and service delivery have undergone transformative shifts. With health and wellness taking center stage in the aftermath of the pandemic, Saudi organizations are turning to professional facilities managers to spearhead these initiatives. This evolution has rendered FM service providers' roles more strategic and long-term, emphasizing hygiene and safety.
• For example, in September 2023, WAYAKIT, a biotech spinout from King Abdullah University of Science and Technology (KAUST), collaborated with Saudi Ground Services (SGS) to roll out sustainable cleaning solutions for the airline sector. This partnership aims to significantly curtail the reliance on hazardous and toxic materials for hygiene maintenance. By aligning with SGS, WAYAKIT reaffirms its commitment to developing eco-friendly products that resonate with the goals of Saudi Vision 2030 and the Saudi Green Initiative.

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 service (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, outsourced [single FM, bundled FM, integrated FM]), and end-user industry (commercial and retail and restaurants, manufacturing and industrial, government, infrastructure and public entities, institutional, and other end-user industries), region (Riyadh, Makkah, Eastern Province, Rest of Saudi Arabia). The Report Offers the Market Size in Value Terms in USD for all the Abovementioned Segments.