June 2017
Kuwait Facility Management Market Outlook to 2021
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June 2017
Kuwait Facility Management Market Outlook to 2021
T ABLE OF C ONTENTS 1. Executive Summary 2. Research Methodology 2.1. Market Definitions 2.2. Abbreviations 2.3. Market Size and Modeling 3. Facilities Management Introduction 4. Value Chain Analysis 5. Market Size by Revenue 6. Market Segmentation 6.1. By Soft and Hard Facilities Management Services 6.1.1. Soft Services Segmentation (Housekeeping, Security, Landscape Access, and Other Business Support Services) 6.1.2. Hard Services Segmentation (Fire and Security Systems, HVAC, ElectroMechanical, and Operation and Building Maintenance), 2016 6.2. By Integrated Facilities Services, Bundled Services and Single Services, 2016 6.3. By Self Personnel and Outsourced Personnel 6.4. By Sectors (Retail & Commercial, Hospitality, Residential and Others) 7. Regulatory Landscape (Tenders and Contracts Regulations and Procedures) 8. Trends and Developments 9. SWOT Analysis 10. Competitive Landscape of Kuwait Facilities Management Market 10.1. Market Share 10.2. Company Profiles 10.2.1. Kharafi National 10.2.2. United Facilities Management 10.2.3. EFS Facilities Management Services 10.2.4. Fawaz Group 11. Future Analysis of the Kuwait Facilities Market 11.1. By Hard Services & Soft Services 11.2. By Integrated Facilities Services, Bundled Services & Single Services 11.3. By Sectors (Retail & Commercial, Hospitality, Residential and Others) 11.4. List of Major Projects which are Expected to Drive Kuwait Facilities Management Market During the Forecast Period 12. Analyst Recommendation 13. Macroeconomic Factors Impacting Kuwait Facilities Management Market 13.1. Kuwait GDP 2011-2021 13.2. Kuwait Construction Industry, 2011-2021 13.3. Kuwait Real Estate Market, 2011-2021 Š Licensed product of Ken Research; should not be copied
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Kuwait Facility Management Market Outlook to 2021
13.4. Kuwait Retail industry, 2011-2021 Disclaimer Contact Us
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June 2017
Kuwait Facility Management Market Outlook to 2021
L IST OF F IGURES Figure 1-1: Flow Chart of Kuwait Facilities Management Market, 2016 Figure 4-1: Value Chain Analysis of Kuwait Facilities Management Market Figure 5-1: Kuwait Facilities Management Market on the basis of Revenues in USD Million and Growth Rate in Percentage (%), 2011-2016 Figure 6-1: Kuwait Facilities Management Market Segmentation by Soft and Hard Services on the basis of Revenues in Percentage (%), 2011-2016 Figure 6-2: Kuwait Soft Services Market Segmentation by Type of Services (Housekeeping, Manned Security, Landscape Access & Façade Access and others) on the basis of Revenues in Percentage (%), 2016 Figure 6-3: Kuwait Hard Services Market Segmentation by Type of Services (HVAC, Electromechanical Services, Landscape Access and others) on the basis of Revenues in Percentage (%), 2016 Figure 6-4: Kuwait Facilities Management Market Segmentation by Type of Services (Single Services, Integrated Services and Bundled Services) on the basis of Revenues in Percentage (%), 2011-2016 Figure 6-5: Kuwait Facilities Management Market Segmentation by Outsourced Personnel and Self Personnel on the basis of Revenues in Percentage (%), 2011-2016 Figure 6-6: Kuwait Facilities Management Market Segmentation by Sectors (Retail & Commercial, Hospitality, Residential and Others) on the basis of Revenues in Percentage (%), 2016 Figure 10-1: Kuwait Facilities Management Market by Major Companies (Kharafi National, UFM and Others) on the basis of Revenues in Percentage (%), 2016 Figure 11-1: Kuwait Facilities Management Market Future Projections on the basis of Revenues in USD Million, 2016-2021 Figure 11-2: Kuwait Facilities Management Market Segmentation by Services (Hard Services & Soft Services) on the basis of Revenues in Percentage, 2016-2021 Figure 11-3: Kuwait Facilities Management Market Segmentation by Services (Integrated Services, Bundled Services & Single Services) on the basis of Revenues in Percentage, 2016-2021 Figure 11-4: Kuwait Facilities Management Market Segmentation by Services (Retail & Commercial, Hospitality, Residential and Others) on the basis of Revenues in Percentage, 2021 Figure 13-1: Kuwait GDP in USD Billion, 2011-2021 Figure 13-2: Kuwait Construction Industry in USD Billion, 2011-2021 Figure 13-3: Kuwait Real Estate Industry in USD Billion, 2011-2021 Figure 13-4: Kuwait Retail Industry in USD Billion, 2011-2021
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June 2017
Kuwait Facility Management Market Outlook to 2021
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June 2017
Kuwait Facility Management Market Outlook to 2021
L IST OF T ABLES Table 2-1: Correlation Matrix of Kuwait Facilities Management Market Table 2-2: Regression Coefficients Output for Kuwait Facilities Management Market Table 3-1: Recent Housing Projects in Kuwait, 2011-2016 Table 3-2: Major Infrastructure Projects Awarded in 2011-2016 Table 3-3: Recent Healthcare Projects in Kuwait, 2011-2016 Table 3-4: Largest Projects Awarded by Government in 2016 Table 5-1: Kuwait Facilities Management Market and Rationale for Revenue, 20112016 Table 6-1: Kuwait Facilities Management Market Segmentation by Soft and Hard Services on the basis of Revenues in USD Million, 2016 Table 6-2: Kuwait Facilities Management Market Segmentation by Soft and Hard Services on the basis of Revenues in USD Million, 2011-2016 Table 6-3: Kuwait Soft Services Market Segmentation by Type of Services (Housekeeping, Manned Security, Landscape Access and Others) on the basis of Revenues in USD Million, 2016 Table 6-4: Kuwait Hard Services Market Segmentation by Type of Services (HVAC, Electromechanical Services, Landscape Access and others) on the basis of Revenues in USD Million, 2016 Table 6-5: Kuwait Facilities Management Market Segmentation by Type of Service (Single Services, Integrated Services and Bundled services) on the basis of Revenues in USD Million, 2016 Table 6-6: Kuwait Facilities Management Market Segmentation by Type of Services (Single Services, Integrated Services and Bundled services) on the basis of Revenues in USD Million, 2011-2016 Table 6-7: Kuwait Facilities Management Market Segmentation by Outsourced Personnel and Self Personnel on the basis of Revenues in USD Million, 2016 Table 6-8: Kuwait Facilities Management Market Segmentation by Outsourced Personnel and Self Personnel on the basis of Revenues in USD Million, 2011-2016 Table 6-9: Kuwait Facilities Management Market Segmentation by Sectors (Retail & Commercial, Hospitality, Residential and Others) on the basis of Revenues in USD Million, 2016 Table 7-1: Registration Process for a Company in Kuwait, 2016 Table 7-2: Tender Process in Kuwait, 2016 Table 7-3: Tender Laws in Kuwait, 2016 Table 9-1: SWOT Analysis of Kuwait Facilities Management Market, 2016 Table 10-1: Kuwait Facilities Management Market by Major Companies (Kharafi National, UFM and Others) on the basis of Revenues in USD Million, 2016
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Kuwait Facility Management Market Outlook to 2021
Table 10-2: Competitive Landscape for Kharafi National including Company Overview, USP, Future Plans, Employees, Business Segment, Business Strategy, Revenue, Product Portfolio and Other Parameters, 2016 Table 10-3: Competitive Landscape for United Facilities Management Including Company Overview, USP, Future Plans, Employees, Business Segment, Business Strategy, Revenue, Product Portfolio and Other Parameters , 2016 Table 10-4: Competitive Landscape for EFS Facilities Management Services Including Company Overview, USP, Future Plans, Employees, Business Segment, Business Strategy, Revenue, Product Portfolio and Other Parameters , 2016 Table 10-5: Competitive Landscape for Fawaz Including Company Overview, USP, Future Plans, Employees, Business Segment, Business Strategy, Revenue, Product Portfolio and Other Parameters, 2016 Table 11-1: Kuwait Facilities Management Market Future Outlook and Projections, 2016-2021 Table 11-2: Kuwait Master Plan Goals to be met by 2030 Table 11-3: Kuwait Facilities Management Market Segmentation by Services (Hard Services & Soft Services) on the basis of Revenues in USD Million, 2016-2021 Table 11-4: Comparative Analysis for Kuwait Facilities Management Market Segmentation by Services (Integrated Services, Bundled Services & Single Services) on the basis of Revenues in USD Million, 2016 and 2021 Table 11-5: Comparative Analysis for Kuwait Facilities Management Market Segmentation by Services (Retail & Commercial, Hospitality, Residential and Others) on the basis of Revenues in USD Million, 2021 Table 11-6: Upcoming Major Projects in Kuwait, 2016-2021 Table 11-7: Upcoming Major Hotel Projects in Kuwait, 2016-2021 Table 12-1: Analyst Recommendation for Kuwait Facilities Management Market, 2016 Table 13-1: Rationale and Description for Kuwait GDP, 2011-2021 Table 13-2: Rationale and Description for Construction Industry in Kuwait, 20112021 Table 13-3: Rationale and Description for Real Estate Industry in Kuwait, 2011-2021 Table 13-4: Rationale and Description for Retail Industry in Kuwait, 2011-2021
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HOW FACILITIES MANAGEMENT MARKET IS POSITIONED IN KUWAIT? The Facilities management service industry in Kuwait is at nascent stage. The market has witnessed a robust growth over past five years. The Facilities management industry has begun growing with the outsourcing of soft services such as cleaning, housekeeping and others in Kuwait. Facilities Management is a management discipline that supports and improves core company processes and increases return on investment by result-oriented use of resources, services, and activities, vital to the success of any organization. There are several advantages stacked in the favor of FM, including, cost advantage, economies of scale, and efficient management of facilities and assets. Facilities management market has grown from USD ~ million in 2011 to USD ~ million in 2016, growing at a CAGR of ~% during the period. The major growth drivers for the industry are booming real estate market, growing construction industry, increasing number of shopping malls & super markets, expanding hospitality sector and others.
The developments in the industry in terms of technology have been approaching people to move towards adopting the Facilities management. The market has transformed to a greater extent since initially the idea of integrated Facilities management was unfamiliar, however at the present time the penetration of these services has increased. The Facilities management industry has been emerged as one amongst the most booming industries across India. However, the availability of skilled labour and cutting margins due to high number of unorganized players could pose a challenge to the growth of this market. The industry competition is primarily based on price and the quality of service. The low cost of entry in the Facilities services business further intensifies the marketplace, with firms facing competition from a large number of regional and local owneroperated companies, located mostly in key cities. The industry is largely dominated by giants such as Kharafi Nations, UFM, EPS, Fawaz group and others.
Figure: Kuwait Facilities Management Market Size on the Basis of Revenues in USD Million, 2011-2016 120.00 100.00
80.00 USD Million
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Kuwait Facility Management Market Outlook to 2021
60.00 40.00 20.00 0.00 2011
2012
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2014
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Kuwait Facility Management Market Outlook to 2021
MARKET SEGMENTATION BY SERVICES TYPE (HARD SERVICES/SOFT SERVICES) Soft Services have dominated the market of Facilities management in Kuwait over past few years. Soft services are those services which require human skill to perform. These services include housekeeping, security, business support services, Access card management, special investigations and others. Soft Services market has increased at a CAGR of ~% during 2011 to 2016.Development in the hospitality industry and hotels in Kuwait has amplified the demand for housekeeping services in the region. The commercial sector is the largest contributor in the soft services market which has accrued most of the revenues in the soft Facilities management services market. Hard services have added a percentage share of ~ in terms of revenues in 2016. Hard Services market has increased at a CAGR of ~% during 2011 to 2016.The absolute value of hard services is increasing over the past five years owing to the growing number of supermarkets and hyper markets in the country. Super & hyper markets require regular maintenance of AC and refrigerator system, resulting in the increasing demand for HVAC services. Table: Kuwait Facilities Management Market Segmentation by Hard Services & Soft Services on the Basis of Revenues in Percentage (%), 2016 Revenues in Segments Percentage (%) Soft Services ~ Hard Services ~ Total ~
MARKET SEGMENTATION BY INTEGRATED SERVICES, SINGLE SERVICES AND BUNDLED SERVICES Single services are the largest contributor in the industry with the share of ~% in the revenues of the industry in 2016. Single Services have separate contracts for specific service, which is placed with specialist providers. The major demand for single services is coming from residential sector. Residential sector majorly demands for single Facilities service such as cleaning, washing, housekeeping, maintenance and others. Integrated services have contributed a share of ~ % in the revenues of the industry. Integrated Facilities management services are offering consolidated services from cleaning services to IT management services. All the services are offered under one contract and one management team. Bundled services are the least contributor in the market with the share of ~% in 2016.Bundled services are grouped into hard and soft bundles such as a bundled package will cover building fabric, M&E, lifts and another package will cover catering, cleaning, hospitality and security. Table: Kuwait Facilities Management Market Segmentation by Integrated Services, Single Services and Bundled Services on the Basis of Revenues in Percentage (%), 2016 Revenues in Segments Percentage (%) Single Services ~ Integrated Services ~ Bundled Services ~ Total ~
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Kuwait Facility Management Market Outlook to 2021
MARKET SEGMENTATION BY SECTORS
KUWAIT SOFT & HARD SERVICES MARKET SEGMNETATION
Retail & Commercial sector has largely dominated the revenues of the industry with the share of ~% in 2016. Growing number of new shopping malls & hyper markets and the expansion of the existing malls such as the Avenues Mall in the Kuwait City and others in the country has attributed in the rising size of retail sector in the country. Robust growth in the hospitality industry in the country has triggered the demand for the facility management services from this sector in the country. Hospitality sector has contributed a share of ~% in terms of revenues in 2016. Growing number of tourist population in Kuwait has increase the number of hotels in the country. The hotels are majorly demanding hospitality and maintenance services. Residential sector has contributed ~% in the revenues of the industry. Growing number of residential units in the country has increased the demand for facilities management services in past few years. The incline in this sector has given enormous potential to the facility management companies for providing soft facilities management services.
Table: Kuwait Hard Services Facilities Management Market Segmentation Types of Services (HVAC, Electromechanical Services, Landscape Access and others) on the Basis of Revenues in Percentage (%), 2016 Revenues in Segments Percentage (%) Housekeeping ~ Security ~ Landscape Access ~ Others ~ Total ~ HVAC service is the dominating segment in the Hard Services Facilities management industry. The increasing number of offices, shopping complex, hospital and hotels in the country has driven the demand for HVAC services. Operational services have contributed the share of ~% in the industry. Housekeeping services are the largest contributor in the industry with the contribution of ~% in the industry in 2016. Security is the second largest contributor in the industry followed by landscape access and others. Table: Kuwait Hard Services Facilities Management Market Segmentation Types of Services (Housekeeping, Security, Landscape access and others on the Basis of Revenues in Percentage (%), 2016 Revenues in Segments Percentage (%) HVAC ~ Operational & Maintenance ~ Electromechanical Service ~ Fire Safety & Security ~ System Total ~
Table: Kuwait Facilities Management Market Segmentation by (Retail & Commercial, Hospitality, Residential and Others) on the Basis of Revenues in Percentage (%), 2016 Revenues in Segments Percentage (%) Retail & Commercial ~ Hospitality ~ Residential ~ Others ~ Total ~
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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. Growing 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 20162021 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 USD Million
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100.00 0.00 2017
2018
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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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Kuwait Facility Management Market Outlook to 2021
COMPANIES CITED IN THE REPORT Companies Covered in the Report Major Players in Kuwait Facilities Market
List of Companies
Kharafi Nations UFM EFS Facility Management Fawaz Group
KEY FACTORS CONSIDERED IN THE REPORT
Comprehensive analysis of Kuwait Facilities Management Market and its segments Listed major players and their positioning in the market Identified major industry developments in last few years and assessed the future growth of the industry Value chain analysis of Kuwait Facilities Management Market
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Kuwait Facility Management Market Outlook to 2021
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