Saudi Arabia facility management market stood at USD23.30 billion in 2021 and is forecast to grow at a CAGR of 6.97% through 2027. The growing number of organizations seeking to strengthen their positions in the facility management market and increasing investments in large-scale infrastructure projects such as Qiddiya, the Red Sea Project, Jabal Omar, and Al Widyan are expected to boost the demand for facility management services in the country. Saudi Arabia has many holy sites for the Islamic community, thus registering many travelers and visitors every year, resulting in huge opportunities for the construction and hospitality industries. Therefore, all these aspects are anticipated to drive the demand for facility management services in Saudi Arabia during the forecast period.

Facility management (FM) is a profession which includes various disciplines ensuring comfort, functionality, efficiency, and safety of the built environment by incorporating place, people, process, and technology. Facility Management (FM) aims at how these services are being managed. It is a management discipline that ensures efficient and effective support services for different organizations. It is a function within an association that incorporates people, process, place, and technology within the existing environment and aims at improving the productivity of the organization and the quality of people’s lives. Facility Management (FM) covers a range of areas such as cleaning, security, health & safety, building maintenance, catering & hospitality, environmental services such as waste management, etc.

Increasing Growth in Tourism and Construction Industry

The Government of Saudi Arabia is constantly working on expanding its economy by investing in the tourism industry. With the growth of the tourism industry in recent years, there has been an increase in demand for security, maintenance facilities, catering, and various other services. Furthermore, Saudi Arabia's ministry of tourism has announced plans to launch a tourism development fund, which is expected to raise demand for facilities management services. Moreover, the Saudi government launched the 'Smart City' initiative to develop infrastructure projects, in which the government plans to deploy smart parking solutions, smart cameras, smart solid waste disposal, smart lighting systems, and monitoring tools for environmental pollution, which are expected to drive the requirement for services to maintain these systems. Therefore, such factors are expected to increase the market for facility management in Saudi Arabia during the forecast period.

Awareness of Hygiene and Cleanliness

Citizens of Saudi Arabia are now becoming more aware of the cleanliness of their surroundings and personal hygiene due to the COVID-19-induced pandemic. Due to this, cleaning services in Saudi Arabia are expected to expand exponentially over the forecast period, propelling both hard and soft services in the facility management industry. Cleaning and disinfecting the surroundings, especially in commercial spaces, has become the norm in the post-COVID-19 era. Other services, such as toilet and washing facilities, and communal and eating areas, are expected to meet the same cleanliness norms in the coming period. Additionally, the Saudi Arabian government has made substantial contributions to the country's green construction culture. Many Leaderships in Energy and Environmental Design (LEED) certified green building projects had been filed in Saudi Arabia. The LEED certification expressly calls for smart building solutions in the project design, which may be accomplished quickly with the help of facility management professionals. Therefore, such transformations will likely act as a catalyst in developing the Saudi Arabia facility management market.

Technology Integration

As a result of growing technology breakthroughs, many business organizations in Saudi Arabia are choosing automated building management solutions, such as smart buildings. All the systems, such as heating, lighting, ventilation, etc., are integrated and controlled from one location. Hence, technology is gaining popularity in the country due to the rising complexity of new buildings and their high data dependency for optimal operation. Furthermore, surging demand for cloud-based IT services has been aiding the growth of the Saudi Arabia integrated facility management market during the forecast period. The advantages of cloud-based IT services include reducing organizations' operating costs and improving the security of the systems within and among the different verticals. Integrated facility management is an IT-based financial management system that public firms, private firms use, and government authorities to start, manage and monitor the assets and finances of their organizations. The system modulates their expenses and monitors their financial activities related to their services, products, assets, and solution protocols.