Arab News | Saudi facility management market surpasses $50bn, driven by smart cities

RIYADH: Saudi Minister of Municipalities and Housing Majed Al-Hogail affirmed that the Kingdom’s facility management market has exceeded $50 billion, amid the country’s urban expansion and major projects. 

Speaking during the opening of the third International Facility Management Conference and Exhibition 2026 in Riyadh, the minister said the sector represents a key pillar for maximizing asset value, improving urban efficiency, and building a globally competitive national industry, Al-Eqtisadiah reported.  

The event was organized by the Saudi Facility Management Association under the theme “Smart Facilities, Smart Cities,” with the participation of more than 200 public and private entities, as well as experts, academics, and specialists from around the world. 

Major cities boost demand for asset management 

Al-Hogail said the conference is being held as Saudi cities expand and their assets and services grow, alongside national and global commitments, foremost among them Expo 2030 Riyadh and the 2034 FIFA World Cup. 

He added that facility management has become a key element in conserving resources, improving services, and enhancing decision-making efficiency, stressing the importance of shifting from facility operations to managing asset value throughout their life cycles and from addressing failures after they occur to anticipating needs before they arise. 

He further said that data, artificial intelligence, and digital twins provide practical tools to improve asset efficiency by analyzing performance, forecasting needs, and supporting operational decisions, contributing to more reliable services and more efficient use of resources. 

Data and AI drive transformation 

Al-Hogail said the ministry is focusing on two main priorities. The first is data- and outcome-driven asset management by linking design, planning, operation, maintenance, and improvement stages, while developing contracts and performance indicators that measure the actual value of assets. 

The second is building a competitive Saudi market capable of developing solutions and skills, supporting the growth of national companies, encouraging innovation and private-sector investment, and improving the capabilities of Saudi professionals in engineering, technology, asset management and data analysis. 

Al-Hogail emphasized that the ministry’s role focuses on developing a clear and supportive regulatory environment and strengthening partnerships among government entities, the private sector, and universities, as well as knowledge centers and experts to raise professional standards and expand the sector’s economic impact. 

Partnerships and solutions support sector readiness 

Al-Hogail said that the third International Facility Management Conference and Exhibition 2026 aims to move from exchanging ideas to building scalable partnerships, projects, and solutions, strengthening the sector’s readiness for the next phase. 

He added that smart cities are built on their ability to turn data into decisions, decisions into services, and services into value that people can experience, noting that the future of facility management in Saudi Arabia rests on technology as a tool, data as a foundation, investment as a driver and efficiency as a benchmark. 

The conference brought together government and private-sector entities and international experts to showcase the latest practices, technologies and solutions aimed at developing the facility management sector and strengthening its role in supporting urban and economic development in Saudi Arabia.