Market Trends of Saudi Arabia Soft Facility Management Industry
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.
Understand The Key Trends Shaping This Market
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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.
