Middle East and Africa Soft Facility Management Market

MEA Soft Facility Management Market Analysis

The Middle East and Africa Soft Facility Management Market is expected to register a CAGR of 7.7% during the forecast period.

• The key players in the soft facility management market include EFS Facilities Services Group, Ejadah Asset Management Group, Emrill Services LLC, Farnek Services LLC, and Sodexo Inc, which offer cleaning facility management services, catering services, additional support, landscaping services, and security services that will drive new growth opportunities in the end-user industries (Commercial, Institutional, Public/Infrastructure, Industrial) in the Middle East, and Africa.
• Megaprojects are particularly used for infrastructure development and are being undertaken increasingly across the Middle East & African Countries. Megaprojects are highly complex that involve significant construction activities. New construction activities will further increase the need for soft facility services.
• Saudi Vision 2030 is the major factor driving new construction plans. The government's vision is to prompt the development of megaprojects across multiple commercial spaces, be it in the retail, tourism, or residential sector, all of which will need soft facility services. For instance, USD 1 trillion was spent on infrastructure and real estate projects and USD 575 billion in investment to develop the Red Sea Coast into a global tourism and business hub. Additionally, there are eleven mega projects active in Saudi Arabia. Such construction activities increase the need for soft facility services.
• Furthermore, automation and robotics have penetrated growth for the commercial maintenance and cleaning market. For instance, Proven Robotics introduced its first robotics technical services and training center in Saudi Arabia last year. These robots used for cleaning practices will bring new growth opportunities to the soft facility management market.
• Key players offer soft facility management and contribute significant growth to the market. For Instance, Sodexo offers soft services such as cleaning, catering, vending, etc. The company's services saw a significant revenue decline due to COVID-19. Post-COVID-19, the demand for cleaning and catering is expected to create new opportunities for the soft facility management market.

MEA Soft Facility Management Market Trends

Infrastructural Development Activities Continue to Create New Opportunities for Soft Facility Managment Market

• Many regional governments focus on constructing new commercial projects such as smart cities, railways, hospitals, etc. In these smart city projects, the governments are planning to implement advanced automation technologies, which are expected to propel the soft facility management market demand over the next five years.
• Several government-driven initiatives are changing the dynamics of the soft facility management market, reshaping the healthcare landscape, and creating stronger institutional setup and effective regulatory frameworks to promote private sector investment in healthcare. On this note, Saudi Arabia plans to invest USD 66 billion in healthcare infrastructure and boost private sector participation by 2030.
• Long-term soft facility management contracts will create new growth opportunities for the market. For Instance, the UAE government announced that it plans to open new industries across UAE and the country's overall economic output to reach USD 82 billion by 2031.
• The Qatar Integrated Railways Project covers four metro lines in Doha, tram routes in West Bay, Lusail high-speed line, and dedicated freight airways. The Doha Metro is a rapid transit system that became operational in 2019. The future phase involves introducing an additional line (blue) that expands the existing metro with more than 60 stations, and the first expansion is to be completed by 2026. Such railway construction projects will create new growth opportunities for the soft facility management market.

Saudi Arabia is Expected to Witness Significant Growth

• Saudi Arabia is one of the most prominent countries in the region concerning infrastructural development. According to the International Monetary Fund (IMF), the country's GDP amounted to USD 833.54 billion in 2021 and is expected to cross USD 1,072.44 billion by the end of 2027. Soft facility management services are also expected to grow significantly as infrastructure development projects contribute to their economic growth.
• Saudi Arabia is also working on smart city development projects. The Smart City initiative launched by the Saudi government has been pushing its construction sector strongly. Under the initiative, the government plans to install smart solid waste disposal, and environmental pollution monitoring tools, among others, in five Saudi cities. In addition, an investment of USD 500 billion in infrastructure development has been planned under Saudi Vision 2030. Such construction activities are expected to grow the soft facility management market further.
• According to the Saudi Arabian Royal Commission of Riyadh City report, Saudi Arabia plans to host 7,000 new businesses. With the influx of businesses, the region is expected to see a boost in demand for soft facility services. The increasing number of commercial establishments and technology integration are expected to drive market growth.
• According to the Saudi Gazette report, the value of the retail chain in the country is expected to grow at a CAGR of 12% during the forecast period. The growth of the commercial retail sector is anticipated to drive the demand for soft facility management services.

MEA Soft Facility Management Industry Overview

The Middle East and Africa soft facility management market is highly fragmented due to ongoing partnerships and recent advancements in the market. Some major players in the market studied include EFS Facilities Services Group, Ejadah Asset Management Group, Emrill Services LLC, Farnek Services LLC, and Sodexo Inc.

In April 2022, EFS won a soft services facility management contract for Jeddah Airport worth AED 272.25 million (USD 74.2 million). This contract would strengthen the leadership position in the market.

In August 2022, Farnek won a security contract worth AED 11.54 million (USD million). Security contracts provide security services across energy, healthcare, finance, manufacturing, education, residential, events and exhibitions, construction, and government, where they will mobilize 420 members to locations in Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, and Umm Al Quwain to provide a range of security services including guarding, maintenance, control and monitoring, inspections, and site reporting amongst others.

MEA Soft Facility Management Market Leaders

MEA Soft Facility Management Market News

• November 2022: Isnaad won the top cleaning company award from the Dubai Construction Innovation in FM Awards event.
• November 2022: Emrill partnered with the Dubai Festival City Mall to launch its first sustainable cleaning robot for a retail environment in Dubai. Automatic robots enable more advanced cleaning services in commercial properties.
• October 2022: Farnek won 16 new contracts in the UAE capital this year, worth USD 13.61 million. These contracts include cleaning, maintenance, security, hospitality, and total facilities management, covering a variety of vertical sectors such as education, prestige properties, food processing, residential towers, and a sports complex.