Investments in facilities management in Saudi Arabia have thrived, thanks to numerous mega projects launched under the transformative Vision 2030.
According to Asharq Al-Awsat, projections suggest that investments in this emerging sector will surpass $60bn by 2030. As a result, Saudi Arabia is developing the facilities management sector to match the growing demand.
Facilities Management
Facilities management aims to ensure the functionality, efficiency, and safety of buildings, infrastructure and real estate. It addresses two main areas: hard facilities management and soft facilities management.
The hard facilities management tackles physical assets and building maintenance, including plumbing, wiring, elevators, and heating and cooling. Meanwhile, soft facilities management focuses on tasks performed by people and organizations, such as cleaning, security and waste disposal.
Facilities Management in Saudi Arabia
Recognizing the growing importance of facilities management sector, the Kingdom established the Saudi Facility Management Association (SFMA) in line with Saudi Vision 2030 as a step towards prosperous future. Hence, the SFMA aspires to enhance facility management in Saudi Arabia by setting criteria for practicing and developing the field.
For this purpose, the SFMA aims to exchange knowledge and experience between facility management professionals, harness science and technology to develop this field, set facility management standards, and take part in achieving national development goals in line with Vision 2030.
Expected Growth
The Chairman of the Board of Directors of SFMA, Eng. Ayed Al-Qahtani, expected that the volume of facilities management sector will reach $60bn in 2030, with a 13.5% growth rate until the end of the decade, he told Asharq Al-Awsat.
He added that facilities management accounted for a large part of the Saudi government total spending on the infrastructure and public services sector in the 2023 budget, reaching SAR 190bn ($50.6bn).
According to Mordor Intelligence, a global market research firm, the volume of the facilities management market in Saudi Arabia will reach $49.6bn by 2029. This projected growth will be driven by several factors, including government investments in infrastructure projects.
Meanwhile, P&S Intelligence, a leading market research and consulting services provider, expects that the Saudi market will experience a growth at a compound annual rate of 12.4%, to reach $90.1bn by the end of the current decade. The firm attributed this growth to increased construction activity in the Kingdom, a thriving tourism industry, as well as increased reliance on advanced technologies.
Leveraging the Boom
Al-Qahtani underscored that the Saudi facilities management market is the fastest growing in the world, pointing to the entry of major international companies to the local market.
To harness this growth, Al-Qahtani said that the SFMA will host the International Facilities Management Conference and Exhibition in September. The event will be hold under the patronage of the Saudi Minister of Housing and Municipalities, Majid Al-Hogail, and in a strategic partnership with the Saudi Facilities Management Company.
The Saudi Facilities Management Company, owned by the Public Investment Fund (PIF), was established in 2023 to meet the growing market needs, in addition to providing the PIF’s real estate development projects with services.
The upcoming facilities management conference focuses on three elements: life quality inside the built environment, the role of artificial intelligence (AI) in facilities management, and the protection of data inside buildings. Al-Qahtani expects the conference to witness the signing of 10 to 15 cooperation agreements.
Saudi Mega Projects
Under Vision 2030, which aims to diversify the Kingdom’s economy and reduce its reliance on hydrocarbons, Saudi Arabia has launched dozens of mega projects worth more than $1 trillion. The most prominent mega projects include NEOM, Red Sea Project, AlUla, Diriyah, Qiddiya Project, Sports Boulevard, AMAALA, and King Salman Park.
These ambitious projects are expected to shape the future of Saudi Arabia and drive an economic boom for the Kingdom. Owing to their scale, these mega projects requires high-quality and cost-effective facilities management.
