Kuwait Facility Management Market Growth, Trends, Forecasts Report 2020-2025 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Kuwait Facility Management Market - Growth, Trends, Forecasts (2020-2025)" report has been added to ResearchAndMarkets.com's offering.

The Kuwait Facility Management Market was valued at USD 1,176.22 million in 2019, and is expected to reach USD 1,774.87 million by 2025, registering a CAGR of 9.26%, during the period of 2020-2025.

Facility management (FM) includes management methods and techniques for building management, infrastructure management for an organization and also the means of overall harmonization of the work environment in an organization. This system standardizes services and streamlines processes for an organization.

The Facility Management (FM) market in Kuwait is relatively new in GCC despite multiple local companies operating in the country since past two to three decades. The players in the market have recently being trying to push awareness specifically amongst the governmental sectors. This is preferred because most of the buildings constructed in the country are from the government investment and are emerging as smart buildings. Also, the new technologies being used in those building offer the existing players with a potential of upskilling their FM services in tandem with it.

Multiple local players shared plans on offering a defined structure and business streams to offer client with a cradle-to-grave solution. The inclusion of FM providers from design to decommissioning has been considered as a competitive edge and simultaneously attracting GCC or Global entrants to the market.

Moreover, the real estate owners and government officials are considered as forerunners after MNCs are becoming increasingly aware of the added value to their assets. This has been fueling adoption of comprehensive and fully integrated service platforms delivering all facility management services, and thus, not to have each service delivered through different companies. For instance, companies such as ENGIE, UFM, Kharafi National, EcovertFM in Kuwait have shared plans to continue to bank on IFM as a service model.

Furthermore, the COVID-19 outbreak has acted as a catalyst for change and has reiterated the need to pay attention to how facilities are being managed and services are being delivered. All built environments, owned or leased offices, warehouses, retail stores or manufacturing facilities, will require careful consideration and tailored plans. Digital technologies have offered ways on changing how real estate functions and facilities are used. It has altered how, when, and where people work, redefining the workplace and the way of living.

Key Market Trends

Construction Activities in Kuwait

• Major projects in tandem with Vision 2035 have been contributing to county's growing investment towards construction sector. Also, multiple renovation activities have been observed too. For instance, launched back in 2018, a USD 60 million work renovation scheme for Al Zour power plant was being resorted for. The country's Minister of Oil and Minister of Electricity and Water signed a deal inclusive of the cost of refurbishing all units of the power facility, as well as upgrading all equipment used on site to ensure it is as energy efficient as possible and this gas-fired power station's renovation program is expected to span 60 months.
• In August 2020, Saudi Arabia's King Salman Energy Park (SPARK) and Kuwait's National Petroleum Services Company (NAPESCO) invested SAR 375 million towards opening an oilfield services equipment facility. It recently signed another deal with Target United Energy to invest in another oilfield equipment and services facility. The construction of Phase 1 of SPARK has reached 60% in July 2020, and the project is expected to be completed by 2021.
• Further, most construction projects in Kuwait are driven by public spending. As of August 2019, Kuwait Integrated Petroleum Industries Company (KIPIC) awarded Veolia via its Middle East subsidiary a contract for the operation and maintenance of its refinery wastewater treatment plant in Al Zour in southern Kuwait. The same led investment of USD 63 million contract for a period of 7 years.

Infrastructure development to aid demand for outsourced FM

• Kuwait has recorded projects worth USD 60 billion toward its Vision Kuwait 2035 strategy as of late 2019, according to Asad United Group. The country has been focusing on the development and constructional activities and programs on creating more opportunities for contractors alike.
• For instance, as of April 2020, TAM with Job Order Contracts in Kuwait awarded an Indefinite Delivery Indefinite Quantity Job Order Contracting (JOC -- for sustainment, restoration, and modernization projects) Single Award Task Order Contract (SATOC) for the District's Kuwait program. Work performed is not limited to, Camp Arifjan, Ali Al Salem Air Base, Camp Buehring, Al Jaber Air Base, Camp Patriot, Udari Range, Kuwait Naval Base.
• Moreover, there are several huge projects to construct new electricity generators to join the highly advanced electrical grid, which is worth about USD 17 billion. There is also the construction of 8000 housing units and the construction of new hospitals to enlarge the health sector to be able to cover the increasing populations needs.

Competitive Landscape

Kuwait Fcility Management Market is framgmented and has few major players who has adopted various growth strategies, such as mergers and acquisitions, new product launches, expansions, joint ventures, partnerships, and others to strengthen their position in this market.

The major players in the market are PIMCO KUWAIT, KHARAFI National, ECOVERT FM, Al Mazsya Holding Company KSCP, among others.

Companies Mentioned

• Tanzifco Company W.L.L
• Magnaflux Corp.
• Al Mulla Group
• Alghanim International General Trading & Contracting Co. W.L.L. (Falghanim)
• United Facilities Management Company K.S.C.C
• ENGIE Services General Contracting for Buildings Company WLL
• Al Mazaya Holding Company KSCP
• EcovertFM
• Kharafi National FM
• PIMCO Kuwait

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