Saudi Arabia Soft Facility Management Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 12.46 Billion |
| Market Size (2029) | USD 23.06 Billion |
| CAGR (2024 - 2029) | 13.10 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Soft Facility Management Market Analysis
The Saudi Arabia Soft Facility Management Market size is estimated at USD 12.46 billion in 2024, and is expected to reach USD 23.06 billion by 2029, growing at a CAGR of 13.10% during the forecast period (2024-2029).
The Saudi Arabian soft facility management market is experiencing significant growth, driven by the growing construction and infrastructural activities, rising focus on quality of life and satisfaction of building occupants, and the country's increased focus on sustainability. Businesses increasingly acknowledge the direct connection between employee well-being and productivity. Consequently, soft service providers prioritize creating conducive and comfortable workspaces for employees. Such factors further propel the country's demand for soft FM services.
- The booming construction industry due to the implementation of Saudi Vision 2030 and the growing hospitality and tourism sector are driving the growth of the Saudi Arabian soft facility management market. The country's hospitality and tourism sector is on an upward trajectory, marked by a surge in visitor arrivals and an increasing footprint of foreign hospitality vendors. This momentum in the hospitality sector has spurred construction activities, leading to a heightened demand for soft FM services. These services are pivotal in enhancing customer experience and comfort in hotels nationwide.
- Saudi Arabia's construction industry is surging, propelled by the ambitious goals of Saudi Vision 2030. This vision seeks to diversify the nation's economy beyond oil, resulting in monumental projects such as new cities, commercial hubs, and entertainment centers. Rapid infrastructure expansion demands a wide array of facility management services — from cleaning and security to catering and maintenance — all vital for ensuring smooth operations and sustainability.
- Saudi Arabia's hospitality and tourism sector, invigorated by the Vision 2030 initiative, is propelling the growth of the soft facility management (FM) market. As this sector expands, the demand for diverse FM services—ranging from cleaning and security to catering and customer service has surged.
- The Saudi Arabian soft facility management (FM) market is witnessing consistent growth, fueled by the Kingdom's ambitious economic diversification and swift urbanization. Yet, this expansion faces hurdles, notably a shortage of skilled talent and mounting pressures for cost optimization. While sectors like healthcare, hospitality, and corporate environments increasingly demand top-tier, specialized FM services, the local market struggles with a constrained pool of qualified professionals. This talent gap results in a heavier dependence on expatriate labor, a solution that, while effective, brings challenges, including high costs and complications from visa restrictions and localization policies.
Saudi Arabia Soft Facility Management Market Trends
Janitorial Services Holds Major Share
- The Saudi Arabian janitorial services market, a segment of the larger soft facility services arena, is on a steady upward trajectory. Key drivers include heightened investments in commercial real estate, a flourishing tourism industry, and government-backed initiatives such as Vision 2030, which drives infrastructure growth and urbanization. Spanning services from cleaning and maintenance to waste management, the market sees public and private sectors increasingly turning to specialized providers for outsourcing.
- Saudi Arabia’s Vision 2030 is spurring economic diversification and urban development, resulting in a boom of new commercial buildings, hotels, and residential complexes. This infrastructure surge fuels an increasing demand for janitorial services, essential for upholding cleanliness and hygiene standards. As urbanization accelerates, the need to regularly maintain public spaces and facilities intensifies, further propelling the market.
- According to the data from the World Bank, the share of the urban population in Saudi Arabia reached 84.95% in 2023. As cities become more densely populated and urban areas expand, the need to make buildings more pleasant, comfortable, and safe for their occupants increases.
- The hospitality industry is expanding as tourism continues to flourish, leading to a heightened demand for top-tier janitorial services. Hotels, resorts, and recreational facilities mandate consistent cleaning and maintenance to uphold guest satisfaction and adhere to health and safety standards. Ambitious undertakings such as NEOM and the Red Sea Project are poised to amplify the demand for janitorial services in the foreseeable future.
Commercial and Retail Industry to be the Largest End User
- The commercial and retail sector covers office buildings occupied by business services, such as corporate offices of manufacturers, IT and telecommunication, finance and insurance, property, convenience stores, and multichannel stores.
- Saudi Arabia's commercial and retail sectors are witnessing a rapid expansion in the soft facility management (FM) services market. This growth is largely attributed to Saudi Arabia's concerted efforts toward economic diversification and the swift evolution of its retail and commercial real estate landscapes. As businesses and retailers increasingly turn to outsourcing for non-core functions, there has been a notable surge in demand for soft FM services, encompassing cleaning, security, catering, and customer support. The market is fiercely competitive, with local and international players curating services to meet the distinct needs of commercial and retail settings.
- In response to this growing demand, investments in city development projects are rising. For instance, Saudi Arabia's Public Investment Fund (PIF) intends to invest SAR 4 trillion (USD 1.1 trillion) in real estate over the next ten years to develop 12 cities for the Saudi Downtown project. The country's total construction output value is estimated to reach USD 181.5 billion by the end of 2028, up almost 30% from 2023 levels, as per industry experts. Increased constructions have resulted in an increased need for soft facility management services for cleaning, security, energy management, and other services.
- Saudi Arabia is rapidly establishing itself as the GCC region's premier tourism destination. In line with this momentum, work is underway on Avenues, Riyadh, a monumental project valued at SAR 17.2 billion (USD 4.586 billion), set to make its grand debut in Q1 2026. The ceremony was in Q1 2022, and the project is 44.5% completion. Covering an expansive 390,000 sq. m, Avenues, Riyadh is set to feature a built-up area of 1,870,000 sq. m. This mixed-use development promises a rich tapestry of hospitality, lifestyle, and entertainment offerings. Notable features include three distinguished hotel towers: Waldorf Astoria, Canopy by Hilton, and Conrad Hotel. The development encompasses a residential tower, an office tower, and a vast parking facility accommodating over 14,000 vehicles.
Saudi Arabia Soft Facility Management Industry Overview
The Saudi Arabian soft facility management is fragmented, and FM companies are incorporating technologies into their services, strengthening their facility management service portfolio. A significant number of joint ventures/acquisitions were made with rising large-scale projects. Therefore, the intensity of competitive rivalry is high. Some players include Khidmah Sole Proprietorship LLC (Aldar Properties PJSC), ASMACS Group, Crystal Facilities Management Limited, Initial Saudi Group, and SGS Saudi Arabia (SGS SA).
- February 2024: Hassan Allam Holding revealed that its subsidiary, Kortech, secured comprehensive mechanical and electrical works for the headquarters of a leading developer in Saudi Arabia. The project is located in the King Abdullah Financial District (KAFD) in Riyadh. Kortech's extensive responsibilities span the 23rd to the 30th floor of Tadawul Tower. Its work includes electrical systems, fire-fighting systems, plumbing, HVAC, ELV ICT and communication solutions, data centers, broadcast systems, and 4K video walls, all contributing to a built-up area of approximately 21,000 sq. m.
- January 2024: Kortech, a subsidiary of Hassan Allam Holding and a leading engineering and construction company in the MENA region, announced a significant milestone. Their joint venture with Sharqawi, a Saudi electromechanical contractor, secured a major contract for a medical wellness resort. This resort is located within Amaala Triple Bay, an ultra-luxury destination on Saudi Arabia's northwestern coast. The project scope includes comprehensive mechanical, electrical, and plumbing (MEP) works for a 75-key hotel, 13 branded residences, and villas, covering a total built-up area of 175,000 sq. m. The work encompasses HVAC systems, electrical and light current systems, and fire-fighting & fire alarm systems.
Saudi Arabia Soft Facility Management Market Leaders
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Khidmah Sole Proprietorship LLC (Aldar Properties PJSC)
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ASMACS Group
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Crystal Facilities Management Limited
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Initial Saudi Group
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SGS Saudi Arabia (SGS SA)
*Disclaimer: Major Players sorted in no particular order
Saudi Arabia Soft Facility Management Market News
- August 2024: KTV Working Drone, based in Saudi Arabia, obtained its first operational permit from the General Authority of Civil Aviation. This permit authorizes it to clean building facades, marking a significant milestone as it prepares to launch its services in Saudi Arabia. This licensing initiative reflects the authority's dedication to promoting advanced drone applications, enabling beneficiaries to implement modern operational methods and keep pace with global developments.
- June 2024: Laundryheap, the 24/7 laundry delivery service in the GCC, officially launched its on-demand laundry and dry-cleaning services in Saudi Arabia, now available in Riyadh and Jeddah. This strategic move aims to enhance convenience and efficiency in the Saudi Arabian laundry service market.
Saudi Arabia Soft 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
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 and Recovery in the Post-pandemic Era of the Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Booming Construction Industry Due to Implementation of Saudi Vision 2030
5.1.2 Growth in the Hospitality and Tourism Sector
5.2 Market Challenges
5.2.1 Shortage of Skilled and Specialized Talent and Cost Optimization Problems
5.3 Market Opportunities
5.4 Key Base Indicators of the Market
5.4.1 Occupancy Rates of Offices
5.4.2 Commercial Rest Estate Sector in the Region
5.4.3 Demand for Outsourced Soft FM Services
5.4.4 Rise of IFM Services in Saudi Arabia
6. MARKET SEGMENTATION
6.1 Service Type
6.1.1 Janitorial Services
6.1.2 Pest Control Services
6.1.3 Waste Management Services
6.1.4 Security Services
6.1.5 Vending Services
6.1.6 Other Soft FM Services
6.2 End-user Industry
6.2.1 Commercial and Retail
6.2.2 Manufacturing and Industrial
6.2.3 Government, Infrastructure, and Public Entities
6.2.4 Institutional
6.2.5 Other End-user Industries
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Khidmah Sole Proprietorship LLC (Aldar Properties PJSC)
7.1.2 ASMACS Group
7.1.3 Crystal Facilities Management Limited
7.1.4 Initial Saudi Group
7.1.5 SGS Saudi Arabia (SGS SA)
7.1.6 Jood FM
7.1.7 Alhajry Overseas
7.1.8 Muheel Facilities Management
7.1.9 SAMAMA Holding Group
7.1.10 EFS Facilities Management Services Group
7.1.11 Al Yamama Group
8. MEP AND HVAC SERVICES IN SAUDI ARABIA
8.1 Market Size Estimates and Forecasts of MEP and HVAC Services
8.2 Associated Trends Observed in KSA
8.3 Summary of Recent Developments
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
Saudi Arabia Soft Facility Management Industry Segmentation
Soft services are services and facilities that improve the workplace by enhancing security, creating a pleasant atmosphere, and increasing efficiency.
The Saudi Arabian soft facility management (FM) market is defined based on the revenues generated from the soft facility management services used by various end-user industries across Saudi Arabia. The analysis is based on the market insights captured through secondary research and the primaries. The report also covers the major factors impacting the market's growth in terms of drivers and restraints.
The Saudi Arabian soft facility management market by service type (janitorial services, pest control services, waste management services, security services, vending services, and other soft FM services), end-user industry (commercial and retail, manufacturing and industrial, government, infrastructure, and public entities, institutional, and other end-user industries). The report offers market forecasts and size in value in USD for all the above segments.
| Service Type | |
| Janitorial Services | |
| Pest Control Services | |
| Waste Management Services | |
| Security Services | |
| Vending Services | |
| Other Soft FM Services |
| End-user Industry | |
| Commercial and Retail | |
| Manufacturing and Industrial | |
| Government, Infrastructure, and Public Entities | |
| Institutional | |
| Other End-user Industries |
Saudi Arabia Soft Facility Management Market Research FAQs
How big is the Saudi Arabia Soft Facility Management Market?
The Saudi Arabia Soft Facility Management Market size is expected to reach USD 12.46 billion in 2024 and grow at a CAGR of 13.10% to reach USD 23.06 billion by 2029.
What is the current Saudi Arabia Soft Facility Management Market size?
In 2024, the Saudi Arabia Soft Facility Management Market size is expected to reach USD 12.46 billion.
Who are the key players in Saudi Arabia Soft Facility Management Market?
Khidmah Sole Proprietorship LLC (Aldar Properties PJSC), ASMACS Group, Crystal Facilities Management Limited, Initial Saudi Group and SGS Saudi Arabia (SGS SA) are the major companies operating in the Saudi Arabia Soft Facility Management Market.
What years does this Saudi Arabia Soft Facility Management Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Soft Facility Management Market size was estimated at USD 10.83 billion. The report covers the Saudi Arabia Soft Facility Management Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Soft Facility Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Soft Facility Management Industry Report
Statistics for the 2024 Saudi Arabia Soft Facility Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Soft Facility Management analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
