The Government of Kuwait is currently focusing on reducing the economic dependency on oil revenue. According to the Organization of the Petroleum Exporting Countries (OPEC), the energy sector of Kuwait accounts for around 60% of the country’s gross domestic product (GDP) and nearly 95% of its export revenue. Owing to this reason, economic diversification has become the need of the hour due to the rising global focus on renewables. To decrease its reliance on the energy sector, the nation is focusing on escalating private investments in the construction, tourism, and hospitality sectors.
As a part of this economic diversification, the country is constantly rolling out new infrastructure development plans. Heavy investments are being made in the construction of residential units, malls, and industrial and educational facilities. A spike in the construction activities will amplify the need for facility management services in Kuwait, which is why real estate development companies in the country are also introducing their facility management affiliates. Owing to such reasons, the Kuwait facility management market will progress at an 8.3% CAGR during 2020–2030, which is why market value will reach $2,057.5 million by 2030 from $958.2 million in 2019.
Additionally, the growth of the hospitality sector on account of the expanding tourism sector will escalate the adoption of facility management services in the coming years. The growing tourism industry is creating a requirement for clean premises, which is leading to the widescale adoption of such services in the country. The government is encouraging private investments, amplifying international promotion campaigns, constructing new tourist places, and expanding the airport capacity to boost the country’s tourism sector.
The Kuwait facility management market is characterized by the presence of several companies that are focusing on winning contracts to gain an edge over their competitors. Some of the leading service providers hustling for contracts include United Facilities Management, Al-Awsat United Real Estate Co., Kharafi National for Infrastructure Projects Developments Construction and Services S.A.E, Al Mazaya Holding Company, Refrigeration Industries and Storage Company, O&G Engineering W.L.L., EcovertFM Kuwait, R&E Petroleum Co., PIMCO, and Fawaz Trading & Engineering Services Co. W.L.L.
Thus, the increasing emphasis of the government on infrastructure development and tourism industry’s growth will generate a high requirement for facility management services in the coming years.
Source: www.psmarketresearch.com
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