UAE Facility Management and Contract Catering Market: Information by Type, Application (Real Estate, Hotels, Hospitals, Corporate, Education, Oil and Gas), and Region — Forecast Till 2026

Today, numerous business organizations are outsourcing a wide range of services like contract catering and facilities management to manage their operations adequately. Catering and facilities management services have effectively penetrated different sectors in the UAE including real estate, hotels, healthcare, and public sector. Upcoming mega projects, rapidly growing construction & renovation of airports, and the rising focus of the government on diversifying other businesses are driving the demand for contract catering in the country. Upcoming events like Expo 2020 is expected to attract a large pull of visitors, and such activities in the UAE are offering strong growth potential for the markets.

UAE facility management and contract catering market was valued at USD 2,735.2 million in 2018 and is projected to grow at a CAGR of 10.5% during the forecast period of 2019–2026.

UAE-Facility-Management-and-Contract-Catering-Market

UAE Facility Management and Contract Caterings – Need of the Hour?

Real estate and urban infrastructure development in terms of airports, roadways, ports, and railways are accelerating the demand for catering and FM services. The boom in the UAE’s construction activity – led by Dubai Expo 2020, FIFA World Cup 2022, and investments in aviation and Gulf railway – is creating lucrative opportunities for regional and international catering and FM companies. For instance The completion of large infrastructure projects, including Al Reyadah Carbon-Capture Project by Abu Dhabi National Oil Company (ADNOC) in 2016, Sheikh Rashid bin Saeed Crossing by Dubai Roads and Transport Authority (RTA) in 2015, and Al Sufouh Tramway by Dubai Roads and Transport Authority (RTA) in 2014, has fueled revenues in the contract catering and facilities management market.

UAE-Facility-Management-and-Contract-Catering-Market-Growth

Growth of Tourism Industry

The UAE’s hospitality market is diversifying its offerings. The government’s initiatives to diversify the economy and reduce dependence on oil and gas is aiding the development of non-oil sectors. Tourism is expected to play a much more significant role in the UAE contract catering and facility management market. Tourism accounts for a significant share in employment generation, and in 2016, it contributed around 10.4% of total employment, as per Government.ae. The UAE hosts major events in the region, attracting millions of tourists. For instance, the Dubai World Cup (one of the richest horseracing events in the world), Dubai Classic Golf Championship, Barclays Dubai Tennis, and Dubai International Rally are just some of the many events that take place every year in the UAE. Other than these, Al-Ain is one of the world's oldest inhabited settlements and a UNESCO World Heritage Site, which makes it a perfect attraction for tourists. Growth in the tourism sector is benefitting the catering industry that serves in-flight meals in the UAE. Emirates Airlines is one of the biggest airlines worldwide with a sophisticated catering division.

Incresaing Outsourcing Activities are Helping Integrated Facilities Management Market

As the commercial-built real estate industry grows, corporate outsourcing continues to move upward. The UAE is among the top-ten retail destinations worldwide. The outsourcing trend is gaining traction in different industries across the UAE, offering growth prospects for the industry. In addition, the UAE government is encouraging green construction activity. For instance, Dubai has started implementing its Clean Energy Strategy to achieve 75% clean energy by 2050. Green targets include 50% clean energy by 2050, and treatment of 75% waste by 2021, as stated by the EcoMENA Organization. These initiatives are expected to increase the demand for FM services in the region. Moreover, with the rolling out of different government programs for economic and social development, this trend will grow leap and bounds. For instance, Abu Dhabi’s Economic Vision 2030 is one such program aimed at the economic growth of the Emirate

Growth of Hospitality Industry is offering Lucrative Opportunities for Contract Catering

The UAE’s hospitality and tourism markets are robust with massive potential for investments from both local and global players. The UAE is heavily investing in the hospitality industry as a strategic initiative for economic diversification, with hotels and tourism being the key focus areas. The UAE’s hospitality industry has a positive outlook. The number of hotel rooms in the country is estimated to reach around 165,000 by 2020. Moreover, the leisure and entertainment market will also grow, as 45 million tourists are expected by 2021, as per the U.S.-UAE Business Council. The growth of the hospitality industry is expected to create opportunities for contract catering in the region.

Increasing investment in tourism is also offering growth prospect for future. There has been a wave of investments promoting tourism and infrastructure development to meet the demand from several events and expos. For instance, Rising investments in startups are also expanding the market space in the region. For instance, recently, the Dubai-based office lunch delivery startup ‘Lunch:on’ raised another USD 2.5 million in Series A investment. The startup delivers breakfast and lunch to offices and provides corporate catering solutions. Lunch:on delivers lunch to over 500 companies in the UAE. Moreover, the UAE’s hotel sector, particularly Dubai and Abu Dhabi, will continue to attract investments. For instance, in 2018, Jumeirah’s Saadiyat Island resort, a 293-room beachfront property with seven restaurants, was completed outside downtown Abu Dhabi.

Market Growth, to a Great Degree, Will Depend on Insurance Providers Adding UAE Facility Management and Contract Caterings in Their Listing

The market is slated to register more widespread adoption as insurance providers continue to expand the expanse of their coverage, bringing UAE Facility Management and Contract Caterings into the fold. Government and private providers alike are offering favorable reimbursements and this scenario will bolster market growth in the coming years. Without insurance, UAE Facility Management and Contract Catering services – with their steep prices – will stay far beyond the reach of a majority of the global population.

Intended Audience

Facility Management Service Providers
and Contract Catering Manufacturers
Hospitality Industry
Real Estate Industry
Regulatory Bodies
Fixed Price Contract to Account for a Large Share of the Pie in Contract Catering Market

Fixed price, cost plus and others are major types contract of contract caterings studied in the report. Fixed price contracts are typically refer to the annual cost of catering is agreed upon by the client and contractor at the outset. The client, as per the contract’s term, pays equal monthly installments to the contractor. On the other hand, cost plus contract are, in which client pays all the operating costs, including the food and labor.

Among the two types of contract caterings, fixed price contract captures a larger share of the market, accounting for around 60.4% in the forecast period.

Hotels to Account for a Larger Value Share in Contract Catering Market, Throughout the Forecast Period

End User segment of contract catering services can be categorized into hotels, real estate, hospitals, education sector, oil and gas, corporate, defence and other. Hotels segment is dominating, owing to surging number of hotels in the UAE. As per the U.A.E. Business Council, in 2018, Dubai had 703 hotel and hotel apartment properties with 111,864 rooms, an increase of 6% compared to the last year.

Real Estate Will Emerge as the Most Prominent Market, With Impetus from Burgeoning Growth in the Construction Industry

Dubai and Abu Dhabi dominate the UAE’s residential construction market. In Dubai, 69% of working emigrants don’t have university degrees and most likely have low-paying jobs, providing a large workforce for the facility management industry, as per the International Trade Administration (ITA). Abu Dhabi’s retail sector is expected to grow at a rapid pace on account of the strong domestic demand for luxury goods and constant inflow of tourists, offering business opportunities for facility management service providers in the region.

New Developments are Providing Impetus to the UAE Facility Management and Contract Caterings in Their Listings

The UAE is one of the fastest-growing countries in the Middle East. The country is also considered as the most advanced and adaptive market for facilities management services. The country acts as the central area for contract catering and facilities management services due to tangible developments in Dubai and Abu Dhabi. Dubai is the largest demand generating city for contract catering and facilities management services in the UAE due to its enormous infrastructure investments. However, Abu Dhabi, Sharjah, and RasalKhaimah (RAK) are steadily catching up with the residential and commercial infrastructure developments.

Key Players

Some of the key players in the global UAE Facility Management and Contract Catering market are Abela & CO (LLC), SFC Group, Saffron Hospitality, Al Mazroui Catering, National Catering Services & FoodStuff, Royal Catering Services L.L.C, Intercat, ADNH Compass (Abu Dhabi National Hotels), PROCAT CATERING SERVICES LLC, Jones Lang LaSalle, IP, Inc., Sodexo and Compass Group PLC.

UAE Facility Management and Contract Catering Market Segmentation

By Type of Contract

Fixed Price
Cost Plus
Hybrid
By End-User

Hotels
Real estate
Hospitals
Education Sector
Oil and Gas and other industrial businesses
Corporate
Defense and Other Government Clients
Others
By Country

United Arab Emirates (UAE)
What the Report Covers

In-depth analysis of market dynamics, including drivers, restraints, and opportunities
A quantitative analysis of the current market and a forecast for the duration from 2019 to 2026
Prevailing market opportunities in key segments of the global UAE Facility Management and Contract Caterings market
Recent developments

Contact Us:
Email: sales@straitsresearch.com
Address: 825 3rd Avenue, New York, NY, USA, 10022
Tel: +1 6464807505, +44 203 318 2846
Website: https://straitsresearch.com/

About Us:
StraitsResearch.com is a leading market research and market intelligence organization, specializing in research, analytics, and advisory services along with providing business insights & market research reports.

This release was published on openPR.