The construction industry in Gulf Cooperation Council (GCC) countries is observing significant growth due to the surging tourism activities and improving economic conditions. In recent years, GCC member nations have been allocating huge budgets to the construction sector, owing to which, the countries are adopting facility management solutions in abundance. The rising budgetary allocation to this sector can be attributed to the escalating focus of member nations on reducing their economic dependence on oil and gas revenue.
Additionally, the flourishing travel and tourism industry is also expected to drive the GCC facility management market at a CAGR of 10.1% during the forecast period (2020–2030). The market was valued at $53,804.3 million in 2019 and it is projected to reach $137,297.8 million revenue by 2030. The growth of the travel and tourism sector is supported by the vision of the governments to divert their attention from the oil and gas industry to other industries. Moreover, the introduction of the new visa system of Saudi Arabia will attract over 100 million visitors to the country by 2030.
The service segment of the GCC facility management market is classified into cleaning, catering, property, support, security, and environmental management. Among these, the property category generated the highest revenue in 2019, due to the burgeoning demand for property management services at the newly constructed structures in GCC countries. The property category is further bifurcated into mechanical and electrical maintenance and heating, ventilation, and air conditioning (HVAC) maintenance. Of these, the HVAC maintenance category held the larger market share in 2019, due to the extreme climatic conditions in GCC nations.
According to P&S Intelligence, Saudi Arabia led the GCC facility management market in the recent past, owing to the flourishing tourism and infrastructure sectors in the country. Moreover, the surging investments being made by the government of Saudi Arabia in the construction and infrastructure sectors, primarily on account of their increasing focus on reducing the country’s economic reliance on the oil and gas industry, are fueling the installation of facility management systems in the nation. For instance, the launch of real estate initiatives such as the Red Sea Project by 2030 and Amaala by 2028 will fuel the installation of such systems in the country in the forthcoming years.
Whereas, Qatar is expected to demonstrate the fastest growth in the GCC facility management market during the forecast period, due to the rising construction of towers, malls, and stadiums in the country. Additionally, the increasing implementation of government initiatives to raise awareness of facility management solutions will also support the market growth in the country in the coming years. For instance, the Facility Management Interest Group was established by the Middle East Facility Management Association (MEFMA) and the Qatar Green Building Council (QGBC) to share best practices related to facility management services among various service providers.
Therefore, the growing construction sector and expanding travel and tourism industry will augment the demand for facility management services in the GCC in the coming years.
No comments:
Post a Comment