The United Arab Emirates (UAE) Facility Management Market is witnessing remarkable growth, fueled by ongoing infrastructure development projects and the government’s focus on economic expansion. According to the latest market research report titled “United Arab Emirates Facility Management Market Report (2023-2028),” the market is estimated to reach USD 7.14 billion in 2023, with a projected Compound Annual Growth Rate (CAGR) of 6.68% during the forecast period. This surge in demand for facility management services is attributed to the country’s increasing investments in various sectors and its commitment to sustainable practices.
The facility management industry in prominent UAE cities such as Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, Umm al Quwain, and Ajman is experiencing significant expansion due to ongoing infrastructure development projects. These projects have created a demand for comprehensive facility management services to ensure the smooth operation and maintenance of these newly established structures. Additionally, the government’s emphasis on economic growth has led to increased investments in various industries, further boosting the demand for facility management solutions.
The UAE is actively promoting green building practices to achieve sustainability goals. This emphasis on environmental responsibility has resulted in increased demand for facility management services that align with green building standards. As the country takes strides towards digitizing services, facility management is being integrated with smart technology to optimize energy consumption, reduce waste, and enhance overall operational efficiency.
The commercial end-user segment is expected to dominate the UAE facility management market share. Dubai, in particular, has witnessed substantial development in the commercial sector, with investments of USD 7.0 billion from the Dubai government for the Dubai Expo 2020. These investments have stimulated the demand for facility management services in the retail sector. The commercial segment encompasses industries like IT, finance, insurance, and property, all of which are witnessing significant growth in the UAE. The rapid expansion of the IT sector is anticipated to drive further demand for facility management services in the commercial domain.
Dubai is expected to play a pivotal role in the growth of the UAE facility management market. The Dubai Expo 2020, held in 2022, necessitated substantial government investments, leading to an upsurge in demand for facility management services in the commercial sector. Additionally, the surge in e-commerce activities has spurred the construction of new warehouses and logistics centers, further driving the need for facility management solutions.
The ongoing development in the Dubai region, driven by government investments, is expected to positively impact the facility management market. Furthermore, the post-pandemic recovery in tourism is anticipated to contribute to the growth of the hotel industry, creating additional demand for facility management services.
Recent developments in the UAE facility management market include the establishment of an advanced freight terminal in collaboration with Etihad Rail and Dubai Industrial City. This initiative aims to enhance the country’s infrastructure and transportation network, solidifying its position as a gateway to North Africa, the Middle East, and South Asia. Additionally, leading companies like JLL have secured facilities management contracts, further highlighting the growing potential of the market.
The United Arab Emirates Facility Management Market is witnessing significant growth driven by infrastructure development projects and the government’s commitment to economic expansion. The commercial and IT sectors in Dubai are pivotal contributors to this growth, with investments in retail and logistics bolstering the demand for facility management services. Dubai’s active participation and investments are expected to play a key role in shaping the market’s future. With recent developments supporting the expansion of the facility management sector, the UAE is well-positioned to continue its growth trajectory in the coming years.