The cities of Abu Dhabi, Dubai, and Doha have established a strong presence in the region’s economic landscape, with their markets showing remarkable growth thanks to international projects, foreign investment inflows, and rising populations. In addition, Expo 2020, to be held in Dubai, and the 2022 FIFA World Cup, to be hosted by Doha, are key drivers of demand for world-class infrastructure, as well as the creation of numerous exclusive amenities and luxury facilities.
821,560 real estate employees in the UAE
Al Masa Capital’s real estate report notes that the real estate sector’s contribution to the economy has strengthened over the past decade due to the strength of the region’s real estate market. It explains that between 2000 and 2009, the real estate services market in the United Arab Emirates grew at a faster rate than that of the six Gulf Cooperation Council (GCC) countries.
In the United Arab Emirates alone, the real estate services sector employs approximately 821,560 workers, equivalent to 18.6% of the total workforce. In 2015, this sector contributed approximately 13.3% to the gross domestic product. The real estate services sector includes facilities management (FM) and property management (PM), and both services are still in their early stages in the Gulf Cooperation Council (GCC) countries compared to developed markets such as Europe and North America. Both services cover a wide range of jobs, technologies, and professions.
Facilities Services Industry
The facilities services industry in the Gulf Cooperation Council (GCC) countries has shown tremendous growth rates and outstanding potential due to increased spending on infrastructure throughout the region. The rapid development of real estate and advanced infrastructure—such as airports, roads, ports, and railways—has led to increased demand for the facilities management industry. Furthermore, governments" efforts to diversify their economies away from oil have had a significant impact on boosting the growth of the facilities management sector. While the United Arab Emirates has long been the leading market in terms of the volume of business in em (FM) and property management (PM) in the region, this sector has begun to flourish and gain momentum in both Saudi Arabia and Qatar.
According to Al Masa Capital experts, the facilities management industry in the Gulf has achieved an average annual growth rate of approximately 10%, driven by the booming real estate markets in Saudi Arabia, Dubai, and Qatar, ahead of Expo 2020 and the 2022 FIFA World Cup, respectively. The facilities management (FM) market in the Gulf Cooperation Council (GCC) countries is expected to reach $66 billion by 2020, compared to $37.3 billion in 2015, due to the market’s enormous potential and massive infrastructure spending across the region.
The tourism sector continues to support the real estate market
The report notes that the tourism sector will further accelerate the growth of the real estate market in the Gulf Cooperation Council (GCC) countries, particularly in the United Arab Emirates. While hospitality, residential, and office rentals remain promising markets in the GCC, the retail sector is expected to continue expanding at significant rates in the coming years. As for the residential sector, it is also expected to remain active and accessible to all at affordable prices. Given the relatively smaller real estate markets in the GCC countries, numerous new projects have been added in recent years, providing a significant amount of space. However, this trend appears to be shifting, as there has been a growing interest in renovating and modernizing existing projects rather than building new ones.
