GCC Facility Management Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

GCC Facility Management Market Dynamics

Outsourcing of Facility Management Services Is Major Trend

• The outsourcing of services is a major trend being witnessed in the facility management market of GCC.
• The demand for outsourced facility management services is increasing in GCC countries owing to the advantages it offers, such as reduced overhead costs and freedom to focus on core competencies.
• Additionally, GCC countries have become a hub of construction activities, which has induced a high demand for maintenance services to increase the lifecycle of facilities.
• Thus, the market for outsourced facility management services is growing due to organizations’ need for concentrating on core business activities, instead of facility maintenance.

Increasing Construction Activities Driving Market

• The construction industry in GCC countries is expected to witness rapid growth in the coming years, attributed to the favorable economic conditions and increasing tourism activities.
• As part of several strategic visions, GCC member nations have allocated high budgets to the construction sector, which is providing a push to the facility management market.
• The countries are focusing on reducing their economic dependence on oil and gas revenue, which is one of the major factors resulting in the increasing investment in the construction sector.
• As per estimates, the total construction pipeline of the GCC is worth around USD 2.7 trillion, with Saudi Arabia alone accounting for USD 1.5 trillion worth of projects.
• The New Murabba Development Co. project aims at creating the world’s largest downtown in Riyadh, with dimensions of 400 meters in length, breadth, and height each.
• According to The Peninsula, Qatar’s public works authority, Ashghal, has started 22 new projects worth $1,126 million (QR 4.1 billion) in 2023.
• In February 2023, HH Sheikh Mohammed bin Rashid Al Maktoum launched the U.A.E. National Railway Network, which has a freight fleet comprising 38 locomotives and more than 1,000 wagons capable of transporting all types of goods.
• The surging need for sustainable development is another among the major factors driving the growth of the facility management market, owing to the increasing efforts in member countries for reducing energy consumption.
• The demand for environment-friendly buildings and construction materials is increasing for a sustainable and green future.
• The governments of various GCC countries are extending their support to green projects to ensure minimal degradation of the environment.
• In addition, the unique benefits of green buildings, including the optimal utilization of natural light, highly efficient HVAC systems, and fewer volatile organic compound emissions, have pushed the demand for energy management, which has become an integral part of facility management contracts.

Low Awareness of Facility Management and Workforce Management Issues Pose Challenges

• Many end users are still not aware about the concept of facility management services or have not opened up to the concept of facility management outsourcing.
• Also, they are not aware about the benefits of facility management, and still consider it as an overhead cost instead of a value adding function.
• Also, almost all GCC countries face high inflation and are struggling to contain costs.
• Companies tend to refrain from long-term service contracts related to outsourcing activities, and are not open for price escalation clause in an agreement, which is making it even tougher for facility management firms to retain their margins.
• Facility management is a labor-intensive industry that requires a large number of unskilled staff for soft services, such as manned security, catering, cleaning, and janitorial, and attracts a huge chunk of workforce from Asian countries.
• Most of the companies face issues in handling workforce due to the involvement of strict labor laws, which mandate good working environment and accommodation for workers.
• This complicates the job of facility management companies, as their services are entirely based upon the workforce; however, an efficient management of workforce provides a successful agreement delivery and workforce retention.

Segmentation Analysis

Service Insights

In 2024, the property category accounted for the largest market share, of 35%, and it is also the fastest-growing category. This was because of the increasing demand for property management services, such as heating, ventilation, & air conditioning (HVAC) maintenance and mechanical & electrical maintenance, at the newly constructed buildings in GCC countries.

Based on property service, HVAC maintenance services witness the highest demand. This is majorly attributed to the extreme climatic conditions in GCC countries resulting in a high dependence of buildings on HVAC systems, which is expected to fuel the demand for their maintenance in the coming years.

These services are covered:

• Property (Largest and Fastest-Growing Category)
  • Heating, ventilation, and air conditioning (HVAC) maintenance
  • Mechanical and electrical maintenance
  • Others
• Cleaning
• Security
• Catering
• Support
• Environmental Management
• Others

End User Insights

The commercial category is the largest, and it is also projected to witness the fastest growth during the forecast period, of 11.23%. This is attributed to the growing awareness on expenditure optimization among end users for commercial building management. Moreover, the increasing requirement for maintenance and cleaning services, for attractive and clean facilities, to attract customers/visitors, is fueling the market growth.

These end users are covered:

• Commercial (Largest and Fastest-Growing Category)
• Industrial
• Residential

Mode Insights

In 2024, the in-house classification held the larger share, of 65%. This is attributed to the advantages of the in-house employees performing their duties better and being responsible for their work. In addition, long-term financial analysis generally supports in-house facility management services, as they are considered sustainable in the long term.

The outsourced bifurcation is expected to witness the faster growth during the forecast period. This can be ascribed to the increasing need of companies to outsource these services, in order to maintain focus on their core competencies. Additionally, the growing awareness of outsourced facility management services drives the market in this category.

These modes are covered:

• In-House (Larger Category)
• Outsourced (Faster-Growing Category)
  • Integrated
  • Bundled
  • Single

Type Insights

Hard services accounted for the largest value share in 2024, ascribed to the growing adoption of advanced hard services that require minimal staff for organizing the work atmosphere across different sectors. In addition, the entry of multinational corporations in GCC countries is fueling the demand for hard facility management services. The other major reason was the increase in the foreign direct investments in the energy management and real estate sectors, which drove the market for hard services in member countries.

Soft services are expected to witness the highest CAGR during the forecast period, of 12.02%. This can be owing to the increasing demand for soft services, including cleaning, which ensure superior standards of cleanliness, hygiene, safety, and customer service.

These types are covered:

• Hard (Largest Category)
• Soft (Fastest-Growing Category)
• Others

GCC Facility Management Market Regional Outlook

In 2024, Saudi Arabia held the largest market share in GCC facility management, of 40%. This is majorly attributed to the growing infrastructure and tourism sectors. In addition, an increase in the revenue from the oil and gas sector of the kingdom is fueling the industry growth, as the government is heavily investing in the development of other sectors, such as infrastructure and construction. According to the Japan External Trade Organization (JETRO), the Saudi Arabian facility management industry is likely to reach USD 100 billion in the next 20–25 years, with around USD 1 trillion worth of projects planned or under construction here.

Qatar is the fastest-growing market with a CAGR of 10.67% on account of the steady development of commercial and residential properties in the country. As towers, stadiums, malls, and other structures are being constructed, the facility management market is expected to witness exponential growth in the coming years. In order to promote, educate, and empower facility management providers in the area of sustainable practices, a new initiative was launched in the country. Under this initiative, the Facility Management Interest Group was set up by the Qatar Green Building Council (QGBC) and the Middle East Facility Management Association (MEFMA), as a platform where the best practices related to facility management services can be shared. Furthermore, the Qatar Vision 2030 will be responsible for pushing the market for facility management services in this country.

These countries are covered:

• Saudi Arabia (Largest Country Market)
• U.A.E.
• Kuwait
• Qatar (Fastest-Growing Country Market)
• Rest of GCC (Bahrain and Oman)

GCC Facility Management Market Share

• The GCC facility management market is fragmented in nature as a variety of services come within the ambit of facility management.
• This leads to the presence of companies that offer comprehensive solutions for diverse needs, as well as those that take care of individual requirements.
• The former kind of companies generally cater to the commercial and industrial sectors and large residential colonies with long-term contracts, while the latter are generally contracted by individuals.
• Additionally, not all companies operate in all GCC countries, while some do not even cover one entire country, limiting themselves to a single or few major cities or regions.