Kuwait's FM market to top $1.9bn revenue by 2030
CONSTRUCTION NEWS
The Kuwaiti facility management (FM) market is poised for solid growth over the next few years with its revenue set to increase to more than $1.9 billion by 2030 from an estimated $954.4 million in 2021, growing at a CAGR of 8.5% between 2021 and 2030, according to P&S Intelligence, a leading provider of market research and consulting services.
Due to this, Kharafi National for Infrastructure Projects Developments Construction and Services SAE, Fawaz Trading & Engineering Services Company, O&G Engineering, Ecovert FM Kuwait, Al Awsat United Real Estate Company, Al Mazaya Holding Company, R&E Petroleum, Pimco, Refrigeration Industries Company and United Facilities Management stand to gain handsomely.
Even though the Covid-19 pandemic led to a vast reduction in the demand for facility management services in Kuwait in 2020, service providers can hope for a swift recovery in the coming years, stated the report.
With the general awareness that the coronavirus can survive in the air and exposed surfaces for a short time and infect anyone who comes near, the demand for cleaning and hygiene-related services has started rising rapidly.
Moreover, the Kuwaiti government has struck a $495-million deal with the private sector for the development of industrial, residential, and warehousing infrastructure, which is also acting as a key Kuwaiti facility management market growth driver.
Entities continue to outsource facility management to third-party service providers, to avoid keeping a large staff and to be free to focus on their actual operational areas.
Property services are in the highest demand in the country because they help in the day-to-day operations of built infrastructure; they include mechanical & electrical maintenance, HVAC maintenance, and an array of support services.
The commercial sector is the largest user of facility management services in Kuwait because of the strong focus of the government on the hospital & tourism, retail, education, and other commercial sectors.
The Kuwait Vision 2035 will bring further opportunities for Kuwaiti facility management market players as it involves infrastructure development on a massive scale.
According to P&S Intelligence, much of the infrastructure development, including that under Kuwait Vision 2035, is being done so that the reliance of the country on the oil and gas industry can be lessened.
With the global green push and Kuwait's own strong focus on sustainability, the oil and gas industry is set to lose its significance for the Kuwaiti economy after the next two decades, by which time the government wants to have developed other sectors enough, so that the country's economic growth isn't impacted much, it added.
To leverage the opportunities being created by infrastructure development, Kuwaiti facility management market players are expanding their operations.
For instance, a new brand, ProClean, was launched by Al Mulla Cleaning and Maintenance Services (AMCMS) in August 2021 for providing cleaning services at commercial, residential, and industrial facilities.
Similarly, in January 2020, Engie Services Kuwait was contracted by Taiba Hospital to offer integrated facility management services.-TradeArabia News Service
