U.A.E. Facility Management Market to Double by 2030 Amidst Tourism and Construction Growth

NEW YORK - Sept. 6, 2024 - PRLog -- \The facility management market in the U.A.E. was valued at USD 19.2 billion in 2023 and is projected to reach USD 39.5 billion by 2030, growing at a CAGR of 10.9%. This growth is primarily driven by the expanding tourism sector and increased investments in the construction industry.

The ongoing development in the U.A.E.'s tourism sector is expected to significantly boost the facility management market. In November 2022, Dubai's prime minister launched the UAE Tourism Strategy 2031, part of the "Projects of the 50," which is set to become one of the largest initiatives in the coming years. This strategy aims to position the U.A.E. as a top global destination for tourists.

The facility management industry has also witnessed a surge in mergers and acquisitions in recent years. These activities are helping companies expand, enhance service offerings, and broaden their geographic reach, ultimately improving operational and financial performance.

A key trend in the industry is the growing adoption of cloud-based solutions. The introduction of new SaaS platforms and their increased accessibility have improved the security and management of material components and manpower, resulting in cost savings for both customers and service providers.

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Key Insights

• Cleaning Services: In 2023, cleaning services held the largest share of the facility management market, accounting for approximately 30%. This segment is also growing at the fastest pace, driven by heightened awareness of cleanliness post-COVID-19. The increased focus on hygiene, including regular home cleaning and handwashing, has led to a substantial rise in the demand for cleaning services.
• In-House Services: The in-house segment led the industry in 2023, capturing over 65% of the market. This dominance is attributed to industry players' reliance on in-house services for managing assets and providing various other services such as security and catering.
• Outsourcing: The outsourcing segment is advancing at a robust CAGR of 11.0%, primarily due to the growing demand in the public sector.
• Soft Services: Soft services accounted for the largest share of the market in 2023, approximately 70%, and are growing at the fastest rate.
• Private Sector: The private sector was the largest contributor to the industry in 2023, with around 75% of the market share. In recent years, the private sector has increasingly recognized the benefits of outsourcing facility management services to enhance service delivery and support business functions.