EFSIM: New SAR 930M contracts in 2025 to drive expansion

Tariq Chauhan, CEO and Board Member of EFSIM Facilities Management Company

*How do you view Saudi Arabia’s facilities management (FM) market, and where does EFSIM position itself in terms of market share across key sectors?

- EFSIM has played a pioneering role in the development of Saudi Arabia’s FM industry, supporting its transformation from a predominantly Operations and Maintenance (O&M) focused industry towards an output-based one. As an early mover and driver of the output-based FM, EFSIM has established a strong leadership position in the segment.

Today, we are among the few FM providers in the Kingdom of notable scale with the ability to deliver fully integrated, performance-driven FM solutions for large-scale and specialized projects. These include high-growth sectors such as giga projects, aviation, healthcare, industrial, education, and commercial facilities. As of March 2025, we manage over 32 million sqm across 118 active contracts, maintaining an impressive client retention rate of over 90% over the past decade.

Through our strategic focus on long-term contracts, a stellar track record of delivery, and a nationwide footprint, we are positioned not just as a market participant but as a national FM champion aligned with the Kingdom’s transformation goals.

*How do you assess upcoming developments in the FM market over the next 12 to 24 months, and what indicators do you monitor to gauge growth trends?

- Saudi Arabia’s facilities management (FM) market is experiencing rapid transformation, driven by Vision 2030’s focus on infrastructure development, giga projects, and service quality standards. Valued at approximately SAR 109 billion in 2024, KSA represents the largest FM market in the GCC.

Our core focus area, the output-based FM segment, is a major growth engine within the industry and is Over the next 12 to 24 months, we expect to see robust growth in Saudi Arabia’s FM sector, as the market shifts from traditional manpower-heavy models to integrated, performance-based FM solutions. This is being driven by operational demands across giga projects, increased outsourcing by public sector entities, and rising expectations around service quality, digitalization, and sustainability.

In our view, four sectors will drive the most demand: Giga and mega projects, Healthcare and education, Industrial cities and logistics hubs and aviation and transport infrastructure, each with increasing requirements for specialized services, high compliance standards, and round-the-clock operational readiness.

To monitor market momentum and identify opportunities, we track a mix of forward-looking and real-time indicators, such as tender offers coming to the market, contract pricing trends in the market and new project announcements.

*How are the company’s revenues and profits distributed across major market sectors and geographic regions?

- EFSIM’s financial profile reflects a well-diversified portfolio across both client sectors and geographic coverage within the Kingdom. As of the fiscal year ending 31 December 2024, 45.8% of revenues came from the Northern region, reflecting our established positioning within the region. The Western region contributed 24.5%, driven by extensive infrastructure and development activity, while the Central and Eastern regions accounted for 19.9% and 9.7% of revenues, respectively.

In terms of profitability, this balanced geographic distribution helps manage operational efficiency and optimize resource allocation across the Kingdom. Our ability to effectively mobilize our workforce and assets nationwide supports strong margins, despite the complexities inherent to a geographically dispersed portfolio.

*Given the strong competition in Saudi FM market, how has EFSIM managed to maintain its market share in terms of number and value of new contracts compared to peers?

- EFSIM’s ability to its grow market share, even in a competitive environment, is anchored by our strategic focus on delivering comprehensive integrated FM solutions that create real value for our clients. As a pioneer in out-based FM solutions in Saudi Arabia, we have established strong relations with major giga projects and blue-chip clients, built on a track record of excellent service delivery, which position us to be the partner of choice for new projects and tenders. This is reflected in our client retention rate of over 90% over the past decade.

Additionally, our focus on high-growth and complex segments, particularly giga projects and aviation has differentiated from other players in the market. Between FY2022 and FY2024, revenues from giga projects rose significantly, from SAR 105 million to approximately SAR 395 million, highlighting our proven capability to manage large-scale, demanding engagements. Similarly, our aviation segment achieved steady growth, increasing from SAR 94 million in FY2022 to SAR 177 million in FY2024, reflecting specialized capabilities and consistent client trust.

Our diversified business mix across giga projects (49% of total revenue in FY2024), aviation (22%), oil and gas, education, commercial sectors, and international clients ensures revenue stability, profitability, and reduced reliance on any single sector.

Combined with robust operational excellence, long-term client relationships, and our capacity to scale rapidly and mobilize resources efficiently across the Kingdom, we have been able to secure and renew major contracts and remain in a strong position to continue to do so in the future.

*Give us an insight into the highlights of your financial performance in recent years, and what measures are you taking to maintain revenue stability and profit margins going forward?

- EFSIM has delivered strong financial performance in recent years, with revenue more than doubling from SAR 338 million in FY2022 to approximately SAR 803 million in FY2024, representing a CAGR of 54.2% for the period. This strong momentum continues into 9M 2025 with the company delivering revenues of SAR 725 million, up 24.7% compared to 9M 2024.

Profitability has also steadily improved, as EBITDA margins expanded from around 9% to nearly 12%, while net profit margin increased from 5.1% to 6.4% over the same period.

These results reflect both our strategic sector diversification and our disciplined approach to cost control and operational efficiency.

Looking ahead, to ensure revenue stability and protect margins, we remain focused on securing long-term integrated contracts, ongoing investment in technology and digital platforms to further optimize operations, and prudent working capital management. Combined with our consistently high client retention rates, these efforts ensure EFSIM has a solid foundation for sustainable and profitable growth.

*What is the total value of current contracts under management, and what is the percentage of long-term agreements to the total?

- Between FY2022 and 31 March 2025, EFSIM secured new facilities management contracts totaling approximately SAR 3.6 billion. These awards have resulted in a healthy contractual backlog of SAR 1.8 billion with a weighted-average remaining duration of about three years, highlighting our focus on long-term, multi-year engagements. Our growth trajectory has remained strong into 2025, securing additional new contracts worth more than SAR 930 million by the end of July.

As of 31 March 2025, we have a robust portfolio of 118 active contracts across all the regions of Saudi Arabia and in all major growth sectors. This diversified, predominantly government-backed portfolio provides EFSIM with clear revenue visibility and supports sustained profitability.

*Does the company have new projects under review or negotiation as part of its expansion plans? What are the strategic areas EFSIM is focusing on for expansion?

- We are constantly reviewing and evaluating new opportunities in line with our strategic growth priorities. Our immediate focus is on deepening our presence in critical sectors such as aviation, healthcare, and industrial facilities, where our specialized expertise offers clear competitive advantages, while continuing to deliver value-add results to our existing clients.

Our approach is deliberate and selective, aimed at sustainably diversifying our business while reinforcing our core strengths.