Saudi Arabia Facility Management Market Was Led by Soft Services Category

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Discover the Leading Edge: Soft Services Dominate Saudi Arabia's Facility Management Market! Dive into the dynamic landscape where soft services take the spotlight, shaping the future of facility management in Saudi Arabia.

The important factors supplementing the development of the industry are the increasing construction activities and increasing tourism. The spending of a substantial part of the gross domestic product on construction and the strong support of the government for this sector are the key factors powering facility management outlay.

The soft services category held the largest share, about 70%, in 2022. The category is powered by the high acceptance of support, cleaning, catering, and security services by private and public institutions and complexes.

There is a considerable requirement for outsourcing these services as a result of the growing corporate sector competitiveness and a wish to focus on the core strengths. The advantages of outsourcing comprise cost savings related with planning of commercial space, catering, lifespan of the equipment, use of energy, technical maintenance, and further aspects.

Outsourced facility management services are, furthermore, needed for management of bigger spaces. This requirement for them is also powered by the desire for improved environments of the workplace and lower expenses associated with operations.

Also, corporations are turning toward facility management companies for providing all the above-mentioned services for the satisfaction of the clients and employees, which will power the requirement for soft services.

The corporate and business sector had the largest share, about 35%, in 2022, in Saudi Arabia facility management market and it will grow significantly, around 12%, in the years to come. Under its economic diversification plan, Saudi Arabia is concentrating on the service and business sectors.

Consequently, the nation is observing the large-scale development of office spaces and business zones, which will boost the requirement for facility management services in the kingdom.

The King Abdullah Economic City, which was fashioned through a private-public collaboration amid the Saudi Arabian administration and private investors, is the major privately funded economic zone globally. A gateway for logistics and trade KAEC gives businesses access to a quickly expanding market.

Furthermore, the industry and manufacturing is growing significantly.

Above 100 national and worldwide firms in the consumer products, logistics, automotive, and pharma industries have processes in the city.

A bonded zone and urbane storage operations will be added to the city in the years, to come which would surge the demand for FM.

The rising construction activities, and growing tourism industry has a lot to do with the facility management market in Saudi Arabia, in the years to come.

Source: P&S Intelligence