German firm Dussmann Group relocates its regional HQ to Riyadh, anticipating $50 billion growth in the Saudi Arabia facilities management market as the Kingdom attracts major global companies

Saudi Arabia facilities management sector is set for significant growth, with its market value projected to double by 2030. Hakan Lanfredi, executive board member of the German-based Dussmann Group, forecasts that the industry, currently valued at $25 billion, could reach $50 billion by the decade’s end. This expansion is driven by Saudi Arabia’s Vision 2030 initiative, which is transforming the Kingdom’s infrastructure and economy.

Dussmann Group, a Berlin-based facilities management and consulting firm, recently moved its regional headquarters from the UAE to Riyadh, reflecting a strategic decision to tap into Saudi Arabia’s booming market. Lanfredi explained that the company’s relocation is closely aligned with Saudi Arabia’s expansive Vision 2030 projects, which are generating a substantial demand for facilities management expertise.

“We see a huge market potential here in Saudi Arabia,” said Lanfredi during the inauguration of the firm’s new Riyadh office. “The growth and expectations are enormous, and we believe the sector will reach almost $50 billion by 2030,” Lanfredi emphasised the importance of being at the heart of the action to become one of the biggest players in the Saudi market, a region that he believes offers greater growth potential than the more mature UAE market.

Dussmann’s decision to relocate is part of a wider trend of multinational companies moving their Gulf headquarters to Riyadh, following the Kingdom’s launch of a special initiative to attract global businesses. Incentives include zero per cent corporate income tax for 30 years and the opportunity to bid for lucrative government contracts. This initiative has already attracted major firms such as PepsiCo, PwC, and Deloitte, reinforcing Saudi Arabia’s position as a key business hub in the region.

The German Ambassador to Saudi Arabia, Michael Kindsgrab, attended the inauguration as a guest of honour and hailed the company’s move as a positive step for Saudi-German business relations. “This is a happy day for German-Saudi business relations,” said Kindsgrab. “If we have such a performer taking foot in Saudi Arabia, opening its regional headquarters here, expanding into the region, and moving from 4,000 to 10,000 jobs, I think this is nothing but good news.”

Dussmann Group’s relocation is also part of its joint venture (JV) with Ajlan & Bros Holding, a Saudi investment conglomerate. Formed in 2020, this JV marks Ajlan & Bros Holding’s first partnership in the facilities management sector. Ajlan Al-Ajlan, group managing director of the firm, explained that their decision to partner with Dussmann was driven by the enormous potential of Saudi Arabia’s facilities management sector.

“We see the growth and the massive potential opportunities within Saudi Arabia, and we wanted to make sure that we are part of it,” said Al-Ajlan. He emphasised that the partnership with Dussmann is not just about capitalising on the market growth but also about creating jobs. Since the JV’s inception, the number of employees has grown from a few hundred to over 4,000, and the company is aiming to expand this workforce to over 10,000 within the next three to four years. Most of these new positions will be based in Saudi Arabia, underscoring the direct economic benefits of moving the regional headquarters to Riyadh.

Dussmann Group brings decades of expertise in the facilities management sector, with operations in over 25 countries and more than 60,000 employees worldwide. Al-Ajlan believes that this expertise will be crucial to achieving its goal of becoming a prominent player in the Saudi market. “We are not here to reinvent the wheel,” he said. “Dussmann Group has the know-how, and we are bringing that knowledge to the region and specifically to Saudi Arabia.”

The company’s regional headquarters in Riyadh will serve as a hub for expanding operations across the Gulf region, while its presence in Saudi Arabia will ensure it can take full advantage of the opportunities created by Vision 2030. This ambitious reform programme aims to diversify Saudi Arabia’s economy away from oil dependency and includes massive infrastructure projects in tourism, transportation, and energy – all of which require high-level facilities management services.

In addition to job creation, Dussmann Group’s relocation to Riyadh represents a significant step in enhancing German-Saudi business ties. Ambassador Kindsgrab noted that the presence of a leading German company in the Kingdom is a testament to the strength of economic relations between the two nations, which continue to grow as Saudi Arabia advances its transformative Vision 2030 plans.

As the Kingdom’s facilities management sector continues to expand, Dussmann Group’s decision to relocate to Riyadh positions the company at the forefront of this rapid growth, ensuring it can play a leading role in shaping the future of facilities management in Saudi Arabia.