Kuwait Facility Management, Middle East Facility Management Middle East Facility Management | Page 11

Kuwait Facility Management Market Outlook to 2021
TRENDS & GROWTH DRIVERS
Boom in Oil & Gas Sector: Boom in the oil &
gas sector of the country has increased the
number of power plants and refineries.
Kuwait Petroleum Corporation has entered an
agreement
with
Duqm
Refinery
&
Petrochemical Industries Co. LLC (DRPIC’s) to
cooperate in development of DRPIC’s. This
has increased the demand for HVAC services,
operational
&
maintenance
and
Electromechanical services in Kuwait.
Hotels & Commercial Developments in
Kuwait: The hospitality industry in Kuwait
has witnessed a tremendous growth in past
few years. Hotels & Commercial sector
continues to grow, driven by rising influx of
business, leisure and religious tourists.
Government measures to bolster tourism
activities in the region like encouraging
private sector investments, building new
attractions, expanding airport capacity, and
increasing international promotion campaigns
are providing impetus to the hotel industry in
the country.
Growing Unorganized Sector:
Facilities
management includes a wide range of services
which has led to the emergence of a large
unorganized
sector
in
Kuwait.
The
unorganized sector consists of a number of
small players with focus on one or two
services such as security or cleaning. There are
more than a thousand unorganized players in
the market who do not comply with any rules
and regulations of the government or the
industry associations like statutory regulations
and insurance.
Gr owing Number of Infrastructural Projects:
Kuwait has everything in place to deliver long
term, sustainable growth opportunities for
anybody Involved in Middle East construction
i.e. rich in natural resources, high level of life,
strategic location.
FUTURE GROWTH OF KUWAIT
FACILITIES MANAGEMENT
MARKET
Facilities management market will grow at a
tremendous rate in coming future. The market
will increase at a CAGR of ~% during 2016-
2021 to reach at USD ~ million in 2021 owing
to the rising commercial and residential space
in the country. Growing preferences of
population to live in a clean and secure
environment which will be professionally
managed will boost the demand for facilities
management services. Growing Hotel industry
in the country will trigger the demand for
HVAC
services,
security,
cleaning,
housekeeping
and
other
Facilities
management services.
Figure: Kuwait Facilities Management
Market Future Projections on the Basis of
Revenues in USD Million, 2017-2021
300.00
200.00
June 2017
100.00
0.00
2017
2018
2019
2020
2021
Kuwait Facilities management market will be
largely dominated by Soft services in coming
future. The soft services market will contribute
a share of ~% in 2021. The hard services
market will witness a robust growth in
absolute terms but the percentage share of
hard services will be low as compared to soft
services.
The Government sector will add a share of ~%
in terms of revenues in 2021. The second
largest segment will be the Real estate sector
which will add revenue of ~% in 2021.
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