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Mega Projects Enhance Growth of Saudi Arabia’s Facilities Management

NEOM (Photo: Saudi PIF)
NEOM (Photo: Saudi PIF)
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Mega Projects Enhance Growth of Saudi Arabia’s Facilities Management

NEOM (Photo: Saudi PIF)
NEOM (Photo: Saudi PIF)

Mega Saudi projects have contributed to increasing the volume of facilities management investments, which are expected to exceed $60 billion during 2030.
Facilities management is defined as a comprehensive field that brings together the workplace (buildings and facilities), its workforce, and system operations.
It aims to ensure smooth workflow, improve the efficiency of using facilities, and create a safe and comfortable work environment.
The sector covers a wide range of services, including hard services such as mechanical and electrical maintenance, fire safety, and maintenance of building systems and equipment, and soft services such as cleaning, recycling, pest and infection control, floor maintenance and waste disposal.
An electronic platform was launched in 2023 to develop the sector.
In comments to Asharq Al-Awsat, Chairman of the Board of Directors of the Saudi Facilities Management Association, Eng. Ayed Al-Qahtani, said that the volume of the sector is expected to reach $60 billion in 2030, with a 13.5 percent growth rate until the end of the decade.
Total government spending on the infrastructure and public services sector in the Saudi budget for 2023 amounted to about SAR 190 billion ($50.6 billion), of which facilities management constitutes a large part, according to Al-Qahtani.

According to MordorIntelligence’s expectations, the size of the facilities management market in Saudi Arabia will reach $49.6 billion by 2029, driven by many factors, including government investments in infrastructure projects.
For its part, P&S Intelligence believes that the market will grow at a compound annual rate of 12.4 percent, reaching $90.1 billion by the end of the current decade, pointing to increased construction activities in the country, a growing tourism industry, and over-reliance on advanced technologies.
Al-Qahtani stressed that the Kingdom’s market in the facilities management sector is the fastest growing in the world, with the entry of major international companies into the local market.
He revealed that the association intends to hold the International Facilities Management Conference and Exhibition in September, under the patronage of the Minister of Municipalities and Housing, Majid Al-Hogail, and in strategic partnership with the Saudi Facilities Management Company, which is owned by the Public Investment Fund.
The company was established in 2023 to meet the market needs and provide sector services for the Fund’s real estate development projects.
Al-Qahtani noted that the objectives of the upcoming conference were based on three elements: the quality of human life within the built environment, the role of artificial intelligence in facilities management, especially in light of recent developments and the global tech outage, in addition to the protection of data inside buildings.
He said he expects the event to witness the signing of 10 to 15 cooperation agreements.

 

 

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Saudi Non-Oil Exports Reach Highest Levels Since 2022

A view of the Jeddah Islamic Port. (Asharq Al-Awsat)
A view of the Jeddah Islamic Port. (Asharq Al-Awsat)
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Saudi Non-Oil Exports Reach Highest Levels Since 2022

A view of the Jeddah Islamic Port. (Asharq Al-Awsat)
A view of the Jeddah Islamic Port. (Asharq Al-Awsat)

Saudi Arabia’s non-oil exports have reached their highest levels since the second quarter of 2022, continuing to grow at a steady pace. By the end of the third quarter of this year, non-oil exports, including re-exports, totaled SAR 80 billion (USD 21 billion), reflecting a 16.8% increase compared to the same period in 2023.

This growth aligns with the goals of Vision 2030, which aims to diversify Saudi Arabia’s economy and reduce reliance on oil revenues. Credit rating agency Moody’s recently upgraded Saudi Arabia’s credit rating to AA3 from A1 with a stable outlook, citing the Kingdom’s ongoing economic diversification and the strength of its non-oil private sector. Moody’s projects the non-oil private sector’s GDP to grow by 4–5% annually in the coming years.

According to data from Saudi Arabia’s General Authority for Statistics, non-oil national exports (excluding re-exports) grew by 7.6% in the third quarter of 2024, reaching SAR 57 billion (USD 15.1 billion). Re-exports saw a remarkable surge of 48.4%, amounting to SAR 23 billion (USD 6.1 billion).

In contrast, total merchandise exports dropped by 7.7% to SAR 276 billion (USD 73.5 billion) due to a 14.9% decline in oil exports. As a result, the share of oil exports in total exports decreased from 77.3% in the third quarter of 2023 to 71.3% this year.

Chemical industry products accounted for 25.5% of non-oil exports, growing by 5.3% compared to the same period last year. Plastics, rubber, and their derivatives followed closely, representing 24.9% of non-oil exports, with an 8.9% increase from the third quarter of 2023.

China remained Saudi Arabia’s top export destination, accounting for 15.2% of total exports in the third quarter of 2024. Japan and South Korea followed, at 9.3% and 9.2%, respectively. Other major destinations included India, the UAE, the US, Poland, Egypt, Bahrain, and Taiwan. Together, these ten countries accounted for 66.4% of Saudi exports.

Experts emphasize that the growth in non-oil exports strengthens Saudi Arabia’s economy and reflects the success of its diversification strategy under Vision 2030.

Shura Council member Fadhel Al-Buainain highlighted the importance of considering the scale of Saudi non-oil exports during the third quarter of 2024. He emphasized two key aspects of Saudi non-oil exports.

First, the 16.8% growth achieved is a significant leap that boosts the Saudi economy’s ability to continue strengthening non-oil exports, which are a focal point of Vision 2030 and its economic diversification goals.

Second, he said the 48.4% increase in the value of re-exported goods represents substantial growth, reflecting the Kingdom’s potential to play a pivotal role in regional re-export activities. This, in turn, can stimulate exports and position Saudi Arabia as a global logistics hub.

He further noted that the increase in export value compared to the second quarter of this year, amounting to SAR 37.2 billion (USD 9.92 billion) or 15.6%, indicates sustained and accelerating export growth.

Al-Buainain believes that Saudi Arabia’s ports on the Red Sea and the Arabian Gulf are well-equipped to play a central role in re-exporting, supported by free economic zones, robust infrastructure, and a well-established transportation and logistics network.

He also stated that the improvement in global demand, particularly in the petrochemical sector, which accounted for the largest share of exports, contributed to this growth.

However, the global economic conditions may face certain challenges that will reflect negatively on global demand, he remarked, stressing the importance of diversifying exports.

Dr. Osama Al-Obaidi, an international commercial law consultant and professor, told Asharq Al-Awsat that the significant increase in non-oil exports in the third quarter of this year compared to the same period in 2023 is linked to the growth in petrochemical exports, particularly plastics, rubber, and their derivatives.

He explained that this rise reflects the effectiveness of Saudi Arabia’s economic diversification efforts and its reduced reliance on oil as a sole income source, in line with Vision 2030.

It also highlights the success of the substantial investments made by the government to develop ports and logistics services, such as King Abdulaziz Port in Dammam and Jeddah Islamic Port.

Moreover, improvements in domestic, regional, and international airports, along with initiatives to promote local industries—particularly chemicals, food products, pharmaceuticals, and other high-demand goods in foreign markets—have also played a pivotal role.