Why is Demand for Facility Management Services Soaring in Kuwait?

With the increasing tourist footfall, the hospitality industry is booming in Kuwait. This is, in turn, augmenting the requirement for facility management services in the country. Additionally, the government is taking various initiatives for boosting the tourism industry such as encouraging huge investments from private companies, increasing the capacity of airports, developing new attractions, and launching international promotion campaigns, which are accelerating the expansion of the hospitality industry. As tourists need hotels, resorts, and guest houses and clean premises, their soaring population is driving the need for facility management services in the country. 

Furthermore, the government is making hefty investments in various projects, particularly those pertaining to oil and gas extraction activities and processing facilities, malls, and residential buildings, which are further pushing up the requirement for facility management services in Kuwait. For example, the burgeoning requirement for public housing is predicted to fuel large-scale residential construction in the country in the coming years. Moreover, many real estate developers in the country are launching several facility management affiliates, thereby propelling the demand for facility management services.

Owing to the aforementioned factors, the value of the Kuwait facility management market is expected to rise from $958.2 million in 2019 to $2,057.5 million by 2030, while the market is predicted to advance at a CAGR of 8.3% between 2020 and 2030 (forecast period). The industry is highly fragmented in nature and the major players are currently focusing on contract wins in order to augment their revenue and gain an edge over their rivals.

When the type of property services is taken into consideration, the Kuwait facility management market is divided into mechanical & electrical maintenance, heating, ventilation, and air conditioning (HVAC) maintenance, and others. Amongst these, the HVAC maintenance services category will register the fastest growth in the market in the forthcoming years, as per the estimates of the market research firm, P&S Intelligence. This will be because of the extreme weather conditions in the country that generate a huge requirement for the renovation and refurbishment of the existing systems in commercial and industrial buildings for enhancing their efficiency. 

Hence, the demand for facility management services will rise enormously in Kuwait in the coming years, mainly because of the expansion of the tourism sector and the rapid development of various commercial, residential, and industrial buildings in the country.