RIYADH: The facilities management market in Saudi Arabia is projected to double in value by 2030, according to a Dussmann Group executive, as the company inaugurated its regional headquarters in Riyadh.
Hakan Lanfredi, a member of the executive board at the Berlin-based firm, estimates the current value of the industry in the Kingdom at $25 billion. He anticipates rapid growth by the end of the decade, driven by Saudi Arabia's ambitious Vision 2030 projects.
Dussmann Group relocated its regional headquarters from the UAE to Riyadh, aiming to capitalize on the expanding facilities management sector in the Kingdom. This move follows a trend of firms choosing Riyadh as their Gulf base after the Kingdom introduced a special initiative to attract multinational businesses.
Incentives, including zero percent corporate income tax for 30 years and the ability to bid for government contracts, have attracted companies like PepsiCo, PwC, and Deloitte. Speaking at the inauguration of Dussmann Group's new office, Lanfredi noted, "The demand for facility management consulting is increasing due to the numerous projects underway."
He added, "We see immense market potential in Saudi Arabia, which is expected to reach nearly $50 billion by 2030." Lanfredi explained that to become a major player in the Saudi market, "we need to align with Vision 2030." He also highlighted that the Saudi market's growth potential far exceeds that of the UAE, which is the most mature market in the GCC region.
Dussmann Group's presence in Riyadh is part of a joint venture formed in 2020 with Saudi investment conglomerate Ajlan & Bros Holding. Ajlan Al-Ajlan, the group's managing director, emphasized that this was the first joint venture for the investment organization.
Regarding the decision to move the headquarters from the UAE to Saudi Arabia, Al-Ajlan stated, "We recognized the growth and vast potential opportunities within Saudi Arabia and wanted to be part of it." He also noted that the joint venture started with a few hundred employees and has since grown to over 4,000. The goal is to reach more than 10,000 employees in the next three to four years, with the majority based in Saudi Arabia.
Al-Ajlan aims to capture a significant market share and become a leading player in the sector, leveraging Dussmann Group's expertise. "We are not here to reinvent the wheel; they have operations in over 25 countries with more than 60,000 employees. We intend to bring this know-how to the region, specifically to Saudi Arabia," he said.
The German Ambassador to Saudi Arabia, Michael Kindsgrab, attended the ribbon-cutting ceremony as the guest of honor, calling it a "happy day for German-Saudi business relations." He added, "With such a prominent company establishing its regional headquarters in Saudi Arabia and expanding its operations, moving from 4,000 to 10,000 jobs, this is undoubtedly good news."
