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Saudi Arabia Facility Management Market Industry Growth, and Trends

The Saudi Arabia Facility Management Market is expected to grow at a CAGR of around 15% during the forecast period 2021-2026 says MarkNtel Advisors.

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Saudi Arabia Facility Management Market Industry Growth, and Trends

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  1. Saudi Arabia Facility Management Market Analysis, 2021 marknteladvisors.com

  2. Market Segmentation Saudi Arabia Facility Management Market • By Company • ENGIE Solutions • Khidmah LLC • Interserve Plc • Enova Facility Management Services LLC • Rezayat Group • Musanadah Facilities Management Co. Ltd. • NesmaTrading Co. Ltd. • Al Borj International • Petrojana • Al Hajry Overseas Co. Ltd. • By Type • Hard • District Cooling • Building Management • Plumbing Apparatus, Pumps, Sanitary Units, etc. • Electrical Installation • Energy Management • Air Conditioning System • Roads & Street Lighting System • Others • Soft • Cleaning Services • Catering • Pest Control • Landscaping • Others • Risk • Insurance Management • Security • Disaster Management • Reserve/Sinking Fund • Administrative • Mail Management • Front Office Management • Space Planning & Management • Inventory Management • Others • By Operating Model • In-House • Outsourced • By Service Delivery • Integrated • Bundled • Single Services • By End Users • Commercial • Residential • Government • Retail • Education • Healthcare • Hospitality • Others • By Region • Central • West • South • East • By Enterprise Size • Large • Mid-Size • Small

  3. Study Background – Project Outline (1/8)

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  5. Study Background – Project Outline (3/8)

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  9. Study Background – Project Outline (7/8)

  10. Study Background – Project Outline (8/8)

  11. Saudi Arabia Facility Management Market Outlook, 2016-2026F

  12. Saudi Arabia Facility Management Market, By Revenues (1/3) Figure XX: Saudi Arabia Facility Management Market Revenues (USD Million), 2016- 2026F CAGR CAGR Revenues: XX.XX% Revenues: XX.XX% *Charts are dummy not to scale Source: MarkNtel Advisors • The growth of Saudi Arabia facility management market during 2016-2020 can be attributed to the adoption of strategic plans by the country in order to diversify its economy and the rising foreign investments in sectors such as tourism, real estate, etc. The rising investments in the country is due to the removal of ownership limits for foreign strategic investors in 2019 along with the adoption of seven Guiding Principles for Investment Policymaking which includes non-discrimination, investment protection, investment sustainability, enhanced transparency, securing public policy concerns, ease of entry for employees, and the transfer of knowledge and technology. These factors impacted the number of greenfield investments in the country which increased from 89 in 2017 to 134 in 2019. Hence, this provided new opportunities for the facility management service providers. Furthermore, the outbreak of COVID-19 resulted in the restriction of movement and thereby reduced the demand for facility management services.

  13. Saudi Arabia Facility Management Market, By Type (1/4) Figure XX: Saudi Arabia Facility Management Market Revenue Share (%) & Revenue (USD Million), By Type, 2020 & 2026F Market Share (Percentage) Revenue (USD Million), 2020 & 2026F 2020 2026 *Charts are dummy not to scale Source: MarkNtel Advisors • Overview • The hard facility management services held a significant market share in the Saudi Arabia facility management market during 2016-2020. In order to diversify the economy, the government are focusing towards the development of sectors such as healthcare, tourism, commercial, etc., where the establishment of new buildings would boost the requirement of hard services such as HVAC, building management, etc. The country is home to Mecca and Medina which has majorly contributed towards the attraction of tourists in the country. However, the regions in the country are now inclined towards tapping a tourist market beyond religious pilgrims. For instance: Through its e-visa program introduced by Riyadh, Saudi Arabia opened its doors for non-muslim tourists in 2019. This is expected to surge the requirement for new facilities such as hotels, which would strongly contribute to the growth of hard facility management services in the years to come.

  14. Saudi Arabia Facility Management Market, By Operating Model (1/4) Figure XX: Saudi Arabia Facility Management Market Revenue Share (%) & Revenue (USD Million), By Operating Model, 2020 & 2026F Market Share (Percentage) Revenue (USD Million), 2020 & 2026F 2020 2026 *Charts are dummy not to scale Source: MarkNtel Advisors • Overview • Outsourcing of facility management services in Saudi Arabia is increasing with the ride in the number of competitors offering diverse and niche services. With the rising focus of organizations on core business and for the better quality of services, the organizations have shifted towards outsourcing facility management services, which are expected to have a positive impact on the growth of Saudi Arabia outsourced facility management market during the forthcoming period as well. The customers in the country are increasingly outsourcing facility management services to third-party vendors where a growing trend among businesses across sectors to reduce their overheads, while spurring their productivity, protecting their margins, and leveraging niche expertise would aid the growth of outsourced facility management market. A Considerable amount of companies are considering outsourcing of facility management services during 2021-26, which would sprout opportunities for the third-party vendors.

  15. Saudi Arabia Facility Management Market, By Service Delivery (1/4) Figure XX: Saudi Arabia Facility Management Market Revenue Share (%) & Revenue (USD Million), By Service Delivery, 2020 & 2026F Market Share (Percentage) Revenue (USD Million), 2020 & 2026F 2020 2026 *Charts are dummy not to scale Source: MarkNtel Advisors • Overview • The bundled and integrated facility management services together held a considerable market share in the Saudi Arabia facility management market during 2016-2020. with the growing awareness for facility management services, the companies are opting for integrated services in which they can select more than 2-3 services. In order to cater the demand for integrated facility management services, companies established joint ventures. For instance: In 2019, Abdul Latif Jameel Land and Al Muhaidib Group introduced their joint venture i.e. Muheel an Integrated Facilities Management company in Saudi Arabia. • XX

  16. Saudi Arabia Facility Management Market, By End Users (1/2) Table XX: Saudi Arabia Facility Management Market Revenue (USD Million), By End Users, 2016-2026F Source: MarkNtel Advisors

  17. Saudi Arabia Facility Management Market, By End Users • Residential • With the growing population in the country, the demand for housing is rising and is expected to continue in the forthcoming period as well. This has encouraged the government to introduce new housing projects in the country which would provide new opportunities for hard and soft services in the years to come. For instance: • In 2020, the Ministry of Housing partnered with the private sector and announced the introduction of two new residential projects - Obhur Park and Mogan Village - in Jeddah. Obhur Park would provide 8,000 residential apartments and Mogan Village would include 83 villas. • Under Saudi’s Vision 2030, a smart city project named NEOM worth USD 500 billion is being developed in northwestern Saudi Arabia which would include residential area. The project was planned to be completed by 2025. however, with the advent of COVID-19 in 2020, the work on the project stopped. • Commercial • XX • XX • XX • XX

  18. Saudi Arabia Facility Management Market, By Enterprise Size (1/4) Figure XX: Saudi Arabia Facility Management Market Revenue Share (%) & Revenue (USD Million), By Enterprise Size, 2020 & 2026F Market Share (Percentage) Revenue (USD Million), 2020 & 2026F 2020 2026 *Charts are dummy not to scale Source: MarkNtel Advisors • Overview • XX • XX • XX

  19. Saudi Arabia Facility Management Market, By Competitors Figure XX: Saudi Arabia Facility Management Market Revenue Share (Percentage), By Competitors, 2020 • Others (USD XX Million) • XX • XX • XX • ENGIE Solutions (USD XX Million) • XX • XX • XX • XX • Enova Facility Management (USD XX Million) • XX • XX • XX • Khidmah LLC (USD XX Million) • XX • XX • XX USD XX Million • Interserve Plc (USD XX Million) • XX • XX • XX • Rezayat Group (USD XX Million) • XX • XX • XX Source: MarkNtel Advisors *Charts are dummy not to scale

  20. Saudi Arabia Hard Facility Management Market, By Revenues (1/2) Figure XX: Saudi Arabia Hard Facility Management Market Revenues (USD Million), 2016- 2026F CAGR CAGR Revenues: XX.XX% Revenues: XX.XX% *Charts are dummy not to scale Source: MarkNtel Advisors • Overview • The expansion of sectors such as retail, healthcare, hospitality, etc., is projected to generate new demand for services such as HVAC, building management, electrical installation, etc. With the increasing arrival of tourists in the country, the investments to establish new hotels are increasing which would boost the demand for installation and maintenance of air conditioning, plumbing and electrical systems. For instance: Hilton has planned to launch four new properties in 2021 under the brands Hilton Garden Inn Riyadh Financial District, DoubleTree Riyadh Financial District, Hilton Riyadh King Saud University, Hilton Riyadh Olaya. Moreover, NEOM has plans to introduce first hotel by 2022. • The advent of COVID-19 negatively impacted the demand for hard facility management services due to the lockdown imposed in the country and stoppage of various

  21. Saudi Arabia Hard Facility Management Market, By Type (1/2) Table XX: Saudi Arabia Hard Facility Management Market Revenue (USD Million), By Type, 2016-2026F Source: MarkNtel Advisors

  22. Saudi Arabia Hard Facility Management Market, By Type • Building Management • The rising inclination of the government to establish green buildings is expected to surge the preference for building management system services as the green buildings would include resources which would reduce impacts on the environment. This would be possible through improved design, construction, operation and maintenance. Thus, building management system is expected to play a major role in optimization. Thus, the building management systems market is anticipated to snowball during the forecast period. Furthermore, the growing trend of automating HVAC, electronic security functions, lighting and water management is expected to fuel growth in hard facility management market. The introduction of projects such as NEOM City and Qiddiya City would positively impact the demand for building management services. • Moreover, the spread of COVID-19 in 2020 is expected to boost the focus of the citizens towards automation for all the establishments. The builders are expected to integrate solution which would automate tasks and collect performance data for which they would require facility management companies. Hence, this expected to strongly contribute to the market share of building management systems during 2021-26. • Commercial • XX • XX • XX

  23. Saudi Arabia Hard Facility Management Market, By Operating Model (1/4) Figure XX: Saudi Arabia Hard Facility Management Market Revenue Share (%) & Revenue (USD Million), By Operating Model, 2020 & 2026F Market Share (Percentage) Revenue (USD Million), 2020 & 2026F 2020 2026 *Charts are dummy not to scale Source: MarkNtel Advisors • Overview • The in-house hard facility management market is projected to reduce during 2021-2026 on account of the customer’s inclination towards outsourcing the services which help the customers to focus on their core businesses. For instance: • In order to improve its asset and facility management, Saudi Arabia’s Ministry of Finance signed an agreement with the National Project Management, Operation, and Maintenance Organization in Public Entities (Mashroat) where Mashroatwould offer consultancy services and technical support to the ministry. • Moreover, the massive projects under the Saudi Vision 2030 would provide new opportunities for the hard facility management service providers thereby contributing to the market growth of outsourced facility management services.

  24. Saudi Arabia Hard Facility Management Market, By Service Delivery (1/4) Figure XX: Saudi Arabia Hard Facility Management Market Revenue Share (%) & Revenue (USD Million), By Service Delivery, 2020 & 2026F Market Share (Percentage) Revenue (USD Million), 2020 & 2026F 2020 2026 *Charts are dummy not to scale Source: MarkNtel Advisors • Overview • XX • XX • XX • XX

  25. Saudi Arabia Hard Facility Management Market, By End Users (1/2) Table XX: Saudi Arabia Hard Facility Management Market Revenue (USD Million), By End Users, 2016-2026F Source: MarkNtel Advisors

  26. Saudi Arabia Hard Facility Management Market, By End Users • Overview • FDI is one of the major effective ways to diversify the economy where the government increased its focus on the development of national infrastructure to attract more investments. The government also allowed 100% foreign ownership for the retail and wholesale sectors and introduced a large privatization programme. These factors contributed to the rising FDIs in the country which would also lead to the construction of new facilities which would require hard facility management services. The country attracted FDI inflows of around USD 1.9 billion in the last quarter of 2020 which is an 80% increase in comparison to the same period last year. In addition, The Ministry of Investment delivered 1,278 licenses for foreign investment projects in 2020. Table XX: Saudi Arabia Quarterly Foreign Investment Projects, 2017-2020

  27. Saudi Arabia Hard Facility Management Market, By Enterprise Size (1/4) Figure XX: Saudi Arabia Hard Facility Management Market Revenue Share (%) & Revenue (USD Million), By Enterprise Size, 2020 & 2026F Market Share (Percentage) Revenue (USD Million), 2020 & 2026F 2020 2026 *Charts are dummy not to scale Source: MarkNtel Advisors • Overview • XX • XX • XX • XX

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