Booming Tourism Industry Driving Growth of U.A.E. Facility Management Market

May 25 13:35 2021
Booming Tourism Industry Driving Growth of U.A.E. Facility Management Market
The U.A.E. facility management market is predicted to advance at a CAGR of 10.8% from 2021 to 2030 by P&S Intelligence

One of the most-popular tourist destinations in the world, the U.A.E. charms travelers with its modern skyscrapers, rich culture, desert experience, shopping festivals, lavish lifestyle, and hair-raising theme parks. As a result, the U.A.E. facility management market is set to grow to $39,680.8 million by 2030 from $14,360.2 million in 2020, at a 10.8% CAGR between 2021 and 2030.

This is because seeing the rising number of globetrotters in the country, new hotels and resorts, shopping malls, and tourist attractions are being developed. After being commissioned, these places require regular repair and maintenance and an array of other supportive services to stay in prime condition and keep attracting visitors. In this regard, the U.A.E. facility management market is also being by the surge in commercial and residential construction activities, in preparation for the Dubai Expo 2020 event.

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As was the case around the world, the COVID-19 pandemic in the U.A.E. was characterized by widespread lockdowns. As a result of the shutting down of most of the commercial and industrial spaces, the U.A.E. facility management market was negatively impacted, as the demand for services declined massively. Moreover, the service technicians faced difficulties in reaching end users due to the movement restrictions.

U.A.E. Facility Management Market Segmentation Analysis

In the coming years, the cleaning category will grow the fastest in the U.A.E. facility management market, based on service. Due to COVID-19, the awareness on general hygiene has increased, as maintaining clean facilities is being considered as one of the best ways of keeping the infection at bay. As a result, the demand for cleaning services is rising at commercial and industrial settings.

The business and corporate division dominated the U.A.E. facility management market in the past, on the basis of end user. Dubai aims to be a smart city by 2021, which has led to the proliferation of information technology (IT) and consulting firms. Due to this and the country’s economic diversification initiatives, many new office complexes have been constructed in the country, which has pushed the demand for facility management services in this sector.

In the near future, the higher CAGR, of 11.8%, in the mode segment of the U.A.E. facility management market is predicted to be seen in the outsourced bifurcation. Owing to the increasing awareness of the benefits of outsourcing such operations, including reduced operational costs and freedom to focus on their core business area, industrial and commercial firms are hiring third-party service providers.

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The soft services bifurcation of the type segment will continue to hold the larger share in the U.A.E. facility management market throughout this decade. Services such as building security, landscaping, cleaning, catering, office decoration, and office relocation are considered non-essential, but they are important for increasing the overall productivity and employee satisfaction. Thus, as these services are of direct benefit to the workforce, they continue to be demanded frequently.

Till now, the higher revenue in the U.A.E. facility management market has been contributed by the private sector on account of the realization of the benefits of outsourcing such services by private companies. Moreover, the number of such firms is rapidly rising in the country, as the government is supporting various industries to reduce its dependence on the oil trade.

The major companies in the U.A.E. facility management market are Emrill Services L.L.C., Etisalat Facilities Management LLC, Engie Cofely, Blue Diamond Facilities Management LLC, Deyaar Development PJSC, Reliance Facilities Management, AG Facilities Solution L.L.C., Tafawuq Facility Management L.L.C., EFS Facilities Services Group Limited, Al Shirawi FM L.L.C., Farnek Services L.L.C., Imdaad L.L.C., Adeeb Electrical & Electronic Services Co. L.L.C., Ejadah Asset Management Group L.L.C., Transguard Group L.L.C., and ServeU Facilities Management L.L.C.

Key Findings of U.A.E. Facility Management Market Report

  • Historical demand was highest for property services
  • Demand for hard services to rise fastest
  • Economic diversification key driver for market
  • Under-construction megaprojects huge opportunity for service providers
  • Market players strongly pursuing service contracts
  • Usage of advanced technologies increasing in facility management services

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