The increasing infrastructural development and construction activities in Saudi Arabia is a major factor boosting the requirement of facility management solutions in the country. The Saudi Arabian government is making huge investments in the infrastructure sector and launching major infrastructural development projects across the country, which are, in turn, fueling the demand for facility management solutions in the country. In January 2019, the Saudi Arabian government announced its plans of investing $426 billion for the development of industries and other infrastructure projects in the country by 2030.
The ‘Smart City’ initiative is one of the major infrastructural development initiatives launched by the government in recent times for developing the infrastructure of the cities. Under the Smart City initiative, smart cameras, smart solid waste disposable systems, smart parking solutions, environmental pollution tracking devices, and smart lighting devices would be deployed in various cities across the country, which will, in turn, propel the demand for maintenance services for these systems.
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Apart from the aforementioned factor, the growing tourism sector will also create huge requirement of various facility management services such as those pertaining to security and catering in the country in the future years. The Ministry of Tourism of Saudi Arabia announced in June 2020 that it intends to launch a tourism development fund soon. The Ministry made an initial investment of $4 billion in the fund. Therefore, with continued government support and funding, the tourism industry will thrive in the coming years, which will, in turn, generate huge demand for facility management services in the country in future.
As a result, the Saudi Arabia facility management market attained a valuation of $32,480.4 million in 2019 and is predicted to advance at a CAGR of 9.3% from 2020 to 2030. Cleaning, security, property, support, catering, and environmental management are the most widely used types of facility management services in Saudi Arabia. Out of these, the usage of property services is predicted to be the highest in the forthcoming years. This is attributed to the escalating requirement of proper maintenance of the facility and the various heating, ventilation, and air-conditioning (HVAC) equipment installed in the facility.