The rising need for facilities management services in the Middle East

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The Middle East Facilities Management Services Market has been forecast to grow by $34.05 bn during 2022-2027, registering a CAGR of 10.85%. The growth of the market over the next few years depends on several different drivers. These drivers include the growing prominence of technology in FM, a shift from an oil-dependent economy, a growing emphasis on sustainability, and a rapid growth in commercial construction. In this blog we are going to review the commercial construction factor.  

In recent years the UAE, Saudi Arabia, and Qatar have had rapidly developing infrastructure and commercial real estate together with planning enormous public investments. Their governments are trying to make an exceptionally business-friendly environment too to support economic growth. According to the World Bank and PWC, these three countries have the world´s least demanding tax regimes out of the 189 countries their report looked at, including the UK, US, and Russia.  

The UAE  

Dubai is where IREP is headquartered and perhaps the greatest example of development in the Middle East. Dubai is heavily focusing on projects in the country’s commercial sector – this includes retail and hospitality as well as office buildings. Hosting Dubai Expo 2020 in 2022, required substantial investment from the Dubai government across various infrastructure and relevant commercial projects. Additionally, Reem Mall in Abu Dhabi is one of the megaprojects which will boost the commercial retail sector. It will host more than 450 retail stores, a hypermarket, a multiplex cinema, and two food courts. These large-scale construction projects will boost the demand for facilities management services in the UAE during the forecast period.  


The key driver for the growth of facilities management in Qatar is expected to be Qatar National Vision (QNV) 2030. It is a long-term economic development plan which started with preparations for the 2022 FIFA World Cup. Qatar is investing heavily in infrastructure programs focused on its non-oil and gas sectors. In collaboration with its government and private sector, the country is working on long-term plans such as developing major transportation networks. The recent opening of the new commercial seaport and significant capacity upgrades at Hamad International Airport (HIA) is another proof of the country’s infrastructural expansion.   

Saudi Arabia  

Saudi Vision 2030 is the major driver of new construction plans within the country. The government’s vision includes the development of megaprojects across many commercial areas such as retail, tourism, and the residential sector. For instance, it spent $1 trillion on infrastructure and real estate projects and $575 billion in investment to develop the Red Sea Coast into a global tourism and business hub. Additionally, there are eleven mega projects currently active in Saudi Arabia. The country invests heavily in building ports, railways, roads, and airports. For such large-scale projects, outsourced facility management services will bring new growth opportunities to the market. On the private side, the Royal Commission of Riyadh City announced that the country plans to host 7,000 new businesses.  

Final words  

The rapid growth of commercial construction in the Middle East is a main driver of the rising need for facilities management services in the region. Countries such as the UAE, Qatar and Saudi Arabia are heavily investing in developing infrastructure, commercial real estate and public investment projects while also offering a very business friendly environment with low taxes and simple compliance. This is needed for local companies to push their facilities management services and for many international companies to enter the market.  

If you need advice in relation to your new, or existing portfolios in the Middle East, or anywhere else in the world, contact us. 


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