How Tourism Industry Prosperity is Contributing in U.A.E. Facility Management Market Growth?


The direct contribution of the travel and tourism sector to the gross domestic product (GDP) of the U.A.E in 2016 was $18.7 billion, which was 5.2% of the total GDP, according to the online government portal. From 2017 to 2027, the contribution of this sector to the country’s GDP is expected to increase by 5.1% per annum to $31.6 billion. This remarkable growth in the tourism industry is playing a major role in the growing adoption of facility management services. The U.A.E. has major tourist destinations including Abu Dhabi, Sharjah, and Dubai. Owing to the large number of attractions located in Dubai, the city receives the highest number of tourists in the country. Keeping in mind the huge tourist inflow, many construction projects are in the pipeline, such as the $1.7 billion mega tourist resort Marsa Al Arab, a Formula One Theme Park in Dubai's Motor City, the new IMG Worlds of Legends Theme Park, and Six Flags at Dubai Parks and Resorts, which are already giving a boost to facility management services. 

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A study published by P&S Intelligence claims that the U.A.E. facility management market would garner $23,882.3 million in the coming time to grow significantly from the $13,577.4 million, which it amassed in 2018, at a 9.8% CAGR. Facility management services maintain the functionality of built structures by integrating people, processes, and technology. These services include catering, cleaning, support, property, environment management, and security services. In 2018, the highest demand was for property services due to the large number of heating, ventilation, and air conditioning systems and other electrical appliances installed in buildings, which need regular maintenance. In the coming years, the demand would grow the fastest for environment management services due to the rising focus on waste management and sustainable development in the country.

As the country is set to host the Dubai Expo 2020, it is expected to witness an increase in the volume of tourists that year. The U.A.E. is synonymous with luxury travel, where the focus of the tourism department is on providing travelers with a lifetime experience by offering them world-class facilities and treatment. Therefore, major tourist-centric projects, such as Dubai Water Canal, Bluewaters Island, Dubai Theme Parks, and Dubai Creek Harbor, are underway for the sea of tourists that the country is set to receive in 2020. These projects are expected to be completed before the beginning of the expo. To maintain such high-end and expansive projects, facility management services would be required, thereby providing remarkable growth prospects for the U.A.E facility management market

Facility management services are provided mainly as soft and hard services. Other services include vehicle fleet management, catering, utility management, environmental management, and space management. Owing to the technical nature of hard services, which require heavy capital investment and professional intervention, they remained the most profitable for service providers in 2018. This can also be attributed to the importance they hold in the industrial, commercial, and residential establishments, and the fact that these require great technical know-how for their implementation.

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