Kuwait’s facilities management sector to reach $1.9bn by 2030 – report
14 Feb 2022
Study by P&S Intelligence projects annual growth rate of 8.5% for 10-year period starting 2021 in country’s FM market on Covid recovery and economic diversification
Kuwait’s facilities management (FM) sector is projected to expand at a compounded annual growth rate (CAGR) of 8.5% between 2021 and 2030 to attain revenues of more than $1.9 billion from an estimated $954.4 million last year, according to a study by P&S Intelligence.
The Indian market research and consulting services firm said in it report that even though the Covid-19 pandemic led to a vast reduction in the demand for FM services in Kuwait in 2020, service providers can hope for a swift recovery in the coming years.
The report added that this recovery is partly predicated on the general awareness that with the coronavirus capable of surviving in the air and exposed surfaces for a short time and infecting anyone who comes near, the demand for cleaning and hygiene-related services has started rising rapidly.
The Kuwaiti government has also struck a $495m deal with the private sector for the development of industrial, residential and warehousing infrastructure, which is also acting as a key growth driver for the Kuwaiti FM sector. Entities continue to outsource FM operations to third-party service providers to avoid keeping a large staff and to be free to focus on their actual operational areas, added the report.
The sectors that are the biggest contributors to the rise in demand for FM services include real estate and property, with mechanical and electrical maintenance, HVAC maintenance and an array of support services driving growth as they help in the day-to-day operations of built infrastructure, especially in the commercial sector due to Kuwait’s focus on tourism, retail, education and other such sectors. The Kuwait Vision 2035 will bring further opportunities for the Kuwaiti FM sector as it involves infrastructure development on a massive scale, P&S added.
With the global green push and Kuwait's own strong focus on sustainability, the oil & 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, the report said.
Some of the established player in the Kuwaiti FM market include 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. While the report said that all of these companies stand to gain handsomely from the expansion of the Kuwait FM market, others are also expanding their operations to leverage growing opportunities.
Citing an example, the report pointed to a new brand, ProClean, which was launched by Al Mulla Cleaning and Maintenance Services (AMCMS) in August last year 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.