Emrill is facility Management Company based in Dubai which won a manned guard security contract from Emaar for their sites in downtown Dubai and the Dubai Marina Master Communities, in 2018.
Manned guard security market in Middle East is largely dominated by the three major economies namely Turkey, Saudi Arabia and UAE. Together, they accounted for more than three fourth of the market by revenue. Diversification of economy in sectors related to requirement of soft services such as finance, real estate, tourism and others has guided the growth in the market. Fluency in English and local language along with prior experience in security services has driven the premium segment of the manned guard services.
Diversification of Economy to Sectors Requiring Soft Services and Privatization of Business
The growth was mainly driven by high infrastructure growth, development of tourism, liberalization of economy and government spending on internal security through outsourcing. All major countries in the region have set a target to diversify their economy by 2030 to reduce their dependence on oil by less than 50% of their GDP. Increased investment in development of social infrastructure such as educational institutes and hospitals and leisure attractions such as resorts, safaris, commercial and retail spaces have further helped in boosting the demand for manned guards in various capacities. Heavy investments in infrastructure projects are driving the growth in central region (including Saudi Arabia, Iraq and Jordan). Smart city projects as well as various high profile events across the Middle East are acting as tailwinds for sector growth
Changing Paradigm of Competition in the Market
The market is evenly divided among global and regional players with regional players using the knowledge of local conditions to their benefit in order to compete with the global players which have large resources. Nationalization and Mandatory hiring of local people in the manned guard services has given the boost to domestic companies operating in the region. Foreign Companies, which specialize in offering the entire gamut of facility management and manpower management solution have edge over specialized manned guard services companies as these services are bundled with other soft services in facility management. Local companies are also adopting the same business model and are fast gaining the market share. Hemaya in Qatar, Transguard in UAE, Nesma in Saudi Arabia are some leading local companies mainly operating in their respective home countries as active suppliers of manned guard services.
Adoption to Changing Technology and Regular Training to Act as Major Differentiator in Garnering High Value Clients
Use of technologies has improved the quality of solutions offered by the security companies but at the same time reduced the manpower required to deliver same quality of security to the end user. The quality of training provided by the companies to the guards has also improved as the adoption of better technology has created demand for well educated and technologically sound guards who meet the physical standards. High premium is charged for making such guards available thus improving the revenue of the companies.
High employee’s turnover, non compliance by small regional players and government restrictions to businesses are some of the stumbling blocks that manned guard security companies have to face in the region.
According to Ken Research report titled “Middle East Manned Guard Security Market Outlook to 2022 – By Countries (Turkey, KSA, UAE, Iraq, Iran, Jordan, Israel, Qatar, Egypt, Kuwait, Oman), by Organized and Unorganized, by End Users (Commercial Buildings, Government Buildings, and Residential Units)” Internal instability, increasing investments in infrastructure sector, growing tourism sector, increasing awareness to threats are the major growth drivers in Middle East manned guard security market.
For more information on the research report, refer to below link:
Ankur Gupta, Head Marketing & Communications