Unprecedented growth beckons as Giga-projects transition to active operations, creating a massive vacuum for lifecycle asset management. Vision 2030’s tourism and industrial expansion guarantees long-term demand for integrated, high-quality facility services across the Kingdom.
Chicago, Jan. 19, 2026 (GLOBE NEWSWIRE) — The Saudi Arabia facility management market was valued at USD 51.23 billion in 2025 and is projected to hit the market valuation of USD 134.82 billion by 2035 at a CAGR of 10.16% during the forecast period 2026–2035.
The transition from asset construction to active operation is fueling an unprecedented surge in the Saudi Arabia facility management market. Total contract awards in the Kingdom reached a record-breaking USD 148 billion in 2024, heralding a tidal wave of maintenance imperatives. Contractors have pledged USD 105 billion to Giga-projects as of 2025, locking in enduring service pacts for operators. NEOM exemplifies this scale, with USD 28.7 billion in construction contracts awarded by 2024—assets now demanding hands-on management. The Saudi Arabia facility management market must gear up to service 300,000 homes within NEOM’s masterplan.
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Operational pressures are surfacing even in pre-launch stages. Red Sea Global already staffs 14,000 at its Turtle Bay FM hub, preparing for 50 resorts by 2030. Residential handovers are accelerating too: Roshn notched USD 2.5 billion in sales while advancing 50,000 homes by February 2024. These milestones pivot the market from build-phase to service-era, compelling stakeholders to recalibrate workforce strategies for tangible demand.
Key Findings in Saudi Arabia Facility Management Market
- By Service type, soft services set to capture the largest 74.33% market share.
- By Mode of service, outsourcing of facility management services leads the Saudi market by commanding 55.62% market share.
- By Enterprise size, large enterprises are undisputed powerhouses fueling facility management growth by capturing the largest 67.55% market share.
- By Service delivery model, contract-based delivery enjoys the lion’s share (76.32%) of the market.
Soft Services Capture 74.33% Share Through Waste Recycling and Hospitality Expansion
The commanding 74.33% market share of soft services in the Saudi Arabia facility management market is increasingly driven by the Kingdom’s strategic pivot toward high-volume hospitality support and the circular economy, moving beyond traditional cleaning. Recent Catrion wins highlight diversification beyond aviation into high-growth sectors. In January 2025, Catrion secured a SAR 2.3 billion, five-year catering contract with Riyadh Air, supplying premium meals for its expanding fleet amid Saudi’s aviation boom. The SAR 114 million healthcare meals deal, also from January 2025, covers hospital nutrition services, tapping Vision 2030’s healthcare investments. These bolster non-airline revenue streams This agreement is not merely for food service but encompasses the design, build, and operation of a central industrial laundry facility and catering production unit. This validates that soft services are the operational backbone of the new giga-projects, requiring industrial-scale laundry and housekeeping solutions to service thousands of hotel keys and staff accommodations in remote locations.
Simultaneously, the waste management sub-segment of soft services in the Saudi Arabia facility management market is exploding due to the Saudi Investment Recycling Company (SIRC). With a mandate to divert 85% of industrial waste from landfills by 2035, SIRC is transforming waste collection from a low-value utility into a sophisticated recycling operation. This regulatory pressure forces commercial entities to increase spending on specialized waste management services, further inflating the soft services revenue basket. The segment’s dominance is thus secured by the dual engines of luxury hospitality logistics and mandatory environmental compliance.
Outsourcing Commands 55.62% Share of the Saudi Arabia Facility Management Market Driven by Specialized Technical Energy Partnerships
Outsourcing’s 55.62% leadership is fueled by a “competency gap” where Saudi entities must partner with international experts to manage complex, energy-intensive infrastructure. The market is witnessing a wave of acquisitions and joint ventures where local operational risk is transferred to global leaders. ENGIE Solutions demonstrated this aggression by acquiring Allied Maintenance Company (AMC), a move designed to combine local labor reach with international technical protocols. This integration allows them to service sophisticated industrial clients that self-delivery models cannot support.
A prime example is ENGIE’s facility management contract with International Maritime Industries (IMI) at Ras Al Khair. The complexity of managing the MENA region’s largest maritime yard requires proprietary “Smart O&M” platforms and energy optimization technologies that are unavailable to in-house teams. By outsourcing, IMI ensures its critical assets are maintained to global standards while offloading the risks associated with technical downtime. This trend in the Saudi Arabia facility management market is accelerating across the industrial sector, where clients like King Salman Energy Park (SPARK) prioritize outsourced providers who can deliver guaranteed efficiency outcomes over simple manpower supply, cementing outsourcing as the preferred mode for high-value assets.
Large Enterprises Dominate 67.55% Share via Consolidated Government Asset Portfolios
The 67.55% dominance of large enterprises in the Saudi Arabia facility management market is structurally enforced by the consolidation of government assets under massive holding companies, which effectively eliminates opportunities for smaller players. Tatweer Buildings Company (TBC) stands as the definitive proof of this centralization. Wholly owned by the PIF, TBC acts as the central facility manager for the Ministry of Education, managing a portfolio of over 6,000 schools and administrative buildings. Instead of thousands of small contracts for individual schools, TBC issues aggregated, high-value tenders that only large enterprises with vast liquidity and logistical reach can fulfill.
Furthermore, the private sector mirrors this consolidation. Cenomi Centers, the Kingdom’s largest mall operator, manages its sprawling retail portfolio by engaging large-scale providers capable of standardized delivery across multiple cities. The market is moving away from fragmented, site-specific management to portfolio-wide agreements. Consequently, large FM providers are the only entities capable of absorbing the mobilization costs and bank guarantees required by these “super-clients.” This structural preference for economies of scale ensures that large enterprises remain the undisputed powerhouses of the Saudi FM growth story.
Contract-Based Delivery Secures 76.32% Share with Long-Term Energy Performance Agreements
Contract-based delivery holds a massive 76.32% share because the Saudi Arabia facility management market’s financial model is shifting toward long-term Energy Performance Contracting (EPC). Unlike on-demand works, these contracts are essential for amortizing the capital costs of retrofitting aging infrastructure. Tarshid (The National Energy Services Company) is the primary architect of this dominance. Tarshid signs multi-year, binding agreements with government entities—such as its recent energy efficiency contract with the Saudi Arabia Railways (SAR)—to retrofit buildings and maintain them for over a decade.
These contracts are sticky and non-cancellable because the FM provider’s remuneration is often tied to the energy savings generated over the contract term (Shared Savings Model). For instance, Tarshid’s retrofit of the Kingdom Centre involves upgrading chillers and lighting with a long-term maintenance view that transactional models cannot support. This financial entanglement ensures that facility management is locked in via multi-year legal frameworks rather than ad-hoc purchase orders. As the Kingdom races to reduce domestic energy consumption, the proliferation of these performance-based contracts guarantees that this delivery model will continue to eclipse on-demand services.
Tourism Explosion in the Saudi Arabia Facility Management Market Drives Unprecedented Demand For Hospitality Services
A historic rise in visitor numbers is reshaping the service landscape, injecting urgency into hospitality FM across the Kingdom. The Kingdom recorded 128 million passengers traveling through its airports in 2024, a flux that creates immense pressure on soft services like cleaning, concierge, and guest-facing upkeep to sustain first impressions. Tourism targets were smashed early, with 116 million tourists visiting in 2024—international travelers accounting for 69 million arrivals, while domestic tourism remained robust at 59 million passengers requiring seamless local transport hub services. This demographic surge directly correlates with physical expansion in hospitality, as the sector scales to accommodate the traffic.
The hospitality sector is expanding its physical footprint rapidly: data shows 443,200 hotel rooms were recorded in the Kingdom as of Q3 2024, representing a massive leap from the 214,600 rooms in the same period the previous year—a near-doubling driven by giga-projects like Amaala and The Red Sea. The Saudi Arabia facility management market is witnessing a corresponding spike in regulatory activity, with authorities licensing 3,950 tourism hospitality facilities by Q3 2024, up sharply from only 2,000 in the prior comparable period. Quality is becoming a priority alongside quantity: JLL’s 2025 report confirms 160,000 quality hotel keys currently in operation, with an additional 106,000 keys in the active pipeline for delivery. Niche heritage sites are generating unique service needs too—AlUla recorded 286,259 visitors in 2024—necessitating specialized skills that diverge from standard commercial cleaning, such as artifact preservation and cultural-site security. The trajectory indicates a sustained boom for providers specializing in hospitality management, particularly those integrating tech like IoT for real-time hygiene monitoring to align with post-pandemic standards and Vision 2030’s premium tourism ethos.
Industrial Expansion Necessitates Specialized Hard Facility Management Solutions
The industrial sector is undergoing a rapid transformation that demands technical expertise, elevating hard FM as a cornerstone of the Saudi Arabia facility management market. Data indicates that 2,598 factories were under construction in Q4 2024, representing a total investment value of SAR 166 billion—projects that will soon require sophisticated mechanical, electrical, and plumbing (MEP) maintenance to ensure operational uptime. The current stock is already substantial: 9,991 factories were fully operating by end-Q4 2024, backed by SAR 966 billion in capital, making the integrity of nearly a trillion riyals in assets a critical FM imperative.
Growth shows no signs of abating, with authorities issuing 1,346 new industrial licenses throughout 2024 to fuel expansion. Production launches are frequent and capital-intensive: 103 new factories began operations in January 2024 alone, with investors pouring SAR 900 million into that month’s cohort. Future facilities will demand high-tech maintenance, as the Kingdom targets 4,000 automated factories by 2035 under its Industry 4.0 agenda. Service providers must invest aggressively in workforce training for automation, robotics, and predictive maintenance analytics to capture this lucrative niche. This evolution not only diversifies FM revenue streams but also positions technically advanced firms as strategic enablers of Saudi Arabia’s manufacturing self-reliance.
Transport Infrastructure Deliveries Create New Public Sector Opportunities
Public transport systems coming online are creating intensive daily upkeep opportunities in the public sector for the Saudi Arabia facility management market. The newly operational Riyadh Metro network spans 176 kilometers with 85 stations, each mandating rigorous cleaning, security, and maintenance protocols. Public adoption has been swift: 18 million passengers rode the system between its December 2024 launch and February 2025, scaling toward a daily capacity of 3.6 million—footfall that tests FM resilience in high-density environments.
Aviation infrastructure mirrors this usage intensity. Saudi airports managed 905,000 flights in 2024, expanding connectivity to 170 global destinations. Key hubs operate near capacity: King Abdulaziz International Airport (Jeddah) boasts an annual 50 million passenger capacity, handling 49 million in 2024; King Khalid (Riyadh) served 37.6 million; King Fahd (Dammam) processed 12.8 million. The Saudi Arabia facility management market is vital to these nodes’ operational continuity, from terminal sanitation to asset lifecycle management, unlocking PPP-driven contracts as privatization accelerates.
Commercial Real Estate Surge Powered By Regional Headquarters
The demand for premium office maintenance is escalating in major cities, as Vision 2030’s economic diversification draws global business to Saudi hubs. Riyadh’s total existing office stock reached 5.2 million sqm as of H1 2024, with developers rushing to add supply amid surging occupancies. A total of 52,000 sqm of new office space was delivered in Riyadh during H1 2024, fueling immediate FM needs for HVAC, security, and tenant services. Upcoming projects in the Saudi Arabia facility management market promise even larger scale: construction is underway on 39,000 sqm of Gross Leasable Area (GLA) at Diriyah Square offices as of May 2024, encompassing a total Gross Floor Area (GFA) of 47,000 sqm. Jeddah is also seeing steady activity, recording 1.21 million sqm of office stock in H1 2024—expanding the Kingdom’s Grade-A portfolio.
Business formation rates are driving this occupancy surge, creating a fertile ground for FM providers. Investors registered 135,000 new commercial business licenses in Q3 2024, bolstering a massive overall business ecosystem of 1.5 million commercial registrations nationally as of that quarter. A pivotal policy driver is the Regional Headquarters (RHQ) program, which lured 517 international companies to establish headquarters in Riyadh by 2024. These multinational clients demand international standards of facility care, insisting on integrated services from security to energy management—often benchmarked against global norms like LEED certification. Consequently, the Saudi Arabia facility management market is witnessing a flight to quality, as service providers catering to these elite tenants differentiate through tech-enabled IFM, predictive maintenance, and ESG-compliant operations to secure premium, long-term contracts.
Residential Transaction Volume Signals Community Management Sector Growth
The housing market is generating substantial opportunities for owners’ association management, aligning with Vision 2030’s homeownership push. Transactions are moving at high velocity: the value of residential transactions hit SAR 35.4 billion in Q3 2024, with volume equally impressive at 45,924 deals completed that quarter. Each transaction represents a potential contract for property management services, from common-area upkeep to compliance enforcement. Future supply in the Saudi Arabia facility management market will further boost this segment: planners have confirmed 300,000 residential units planned for the NEOM region, while supporting infrastructure like 1,000 parking spaces for the new Diriyah Square offices underscores ancillary FM demands.
Urban density in established cities provides a steady base of work, ensuring revenue stability. Riyadh’s total stock consists of 1.46 million residential units as of Q3 2024, with Jeddah following closely at 899,000 units in its coastal portfolio. Managing these communities requires a mix of security, landscaping, and waste services, evolving beyond transactional repairs. The Saudi Arabia facility management market is shifting to “lifestyle management”—encompassing smart-home integrations, community events, and sustainability audits—to resonate with affluent buyers. Providers are increasingly engaging Owners Associations proactively, leveraging data analytics for preventive maintenance to secure long-term contracts. The sheer number of units guarantees a stable revenue stream for competent firms, particularly those local players navigating Saudization quotas while delivering white-glove service.
Logistics Hubs and Retail Developments Require Integrated Maintenance
The flow of goods is creating parallel demand for warehousing facility management and automation , as trade volumes soar under diversification goals. Air cargo volumes are robust: Saudi Arabia handled 1.2 million tons in 2024, with the capital leading—Riyadh’s King Khalid Airport processed 573,000 tons. Jeddah remains a critical entry point at 461,000 tons via King Abdulaziz Airport, while the Eastern Province stays active with King Fahd Airport in Dammam handling 140,000 tons. Maintaining the cold chain and security for these goods is vital, demanding specialized FM like temperature-controlled storage and inventory-linked maintenance.
Retail real estate is simultaneously expanding, amplifying high-footfall opportunities. Jeddah’s total retail stock reached 2.16 million sqm by H1 2024, with developers adding 106,000 sqm that period as new malls open. Riyadh is growing its shopping footprint too: 77,000 sqm of retail space was scheduled for delivery in the second half of 2024. Malls are evolving into entertainment centers requiring 24/7 management for lighting, escalators, and crowd control. Saudi Arabia facility management market players are adapting to these environments through CAFM platforms and AI-driven footfall analytics. Success hinges on pristine aesthetic standards to drive visitor retention, positioning agile providers for bundled retail-hospitality contracts.
Leading Providers Secure Major Contracts Within Niche High Value Sectors
Specialized sectors like healthcare offer high-value opportunities, underscoring FM’s role in mission-critical assets. The Security Forces Medical Complex in Jeddah was delivered in 2024 with a value of USD 3.4 billion, now reliant on sterile, 24/7 hygiene protocols. Aviation cleaning emerges as another intense niche: airlines operated 474,000 domestic flights in 2024, with international connectivity equally demanding at 431,000 flights total. These volumes necessitate rapid-turnaround sanitization and compliance with IATA standards.
Local champions are seizing these aggressively. EFSIM (EFS Facilities Services Group) secured SAR 750 million in new contract wins during H1 2025, their recruitment drive reflecting robust growth—onboarding 800 new professionals that period to reach a total workforce of 8,500 employees in 2025. Competitors mirror this: Shalfa Facilities Management landed a SAR 258.8 million contract from Tatweer Buildings in 2025, plus a lucrative SAR 162 million security pact with the Presidency of State Security. These wins highlight integrated local firms’ dominance, blending scale with Saudization-compliant labor. The Saudi Arabia facility management market is consolidating around players delivering specialized technical skills, confirming a vibrant, hyper-growth landscape for 2025 and beyond as giga-projects mature into FM goldmines.
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Saudi Arabia Facility Management Market Major Players:
- Initial Saudi Group (Alesayi Holding)
- EMCOR Facilities Services, Inc.
- Almajal G4S (Allied Universal)
- SETE Energy Saudia for Industrial Projects Ltd
- SAMAMA Holding Group
- ENGIE Solutions (Engie Group)
- Nesma United Industries Co. Ltd
- AL-YAMAMA Group
- Olive Arabia Co. Ltd
- Tamimi Group
- Facilities Management Company (FMCO)
- Al Suwaidi Holding Company KSA
- Khidmah
- ZOMCO
- EFSIM
- Other Prominent Players
Key Market Segmentation:
By Service Type
- Hard Services
- Asset Management
- MEP and HVAC Services
- Fire Systems and Safety
- Elevator and Escalator Maintenance
- Pest Control Services
- Building Fabric Maintenance
- Energy Management and Sustainability Services
- Other Hard FM Services
- Soft Services
- Office Support and Security
- Cleaning Services
- Catering Services
- Landscaping and Grounds Maintenance
- Waste Management
- Reception and Concierge Services
- IT and Tech Support Services
- Accommodation Management
- Other Soft FM Services
By Mode of Service
- In-house Facility Management
- Outsourced Facility Management
- Single Facility Management
- Bundled Facility Management
- Integrated Facility Management
By Enterprise Size
- Large Enterprises
- Small- Medium Enterprises (SMEs)
By Service Delivery Model
- Contract-Based
- Short-Term Contracts
- Long-Term Contracts
- On-Demand / Ad-Hoc Services
By End User
- Business and Corporate
- Education
- Industry and Manufacturing
- Healthcare
- Public Administration
- Hospitality
- Construction
- Others
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