Contract awards for healthcare projects in the GCC are forecast to reach a new high this year, according to a new report.
A record $5.9 billion in contracts were awarded in 2014 and this year they are set to hit $7.3bn – an increase of $1.45bn.
The report by Ventures ME, prepared exclusively for The Big 5 2015, found that falling oil revenues in the GCC has not affected investment in healthcare.
It says in the UAE alone more than 20 hospitals are under construction to care for the half a million medical tourists that are expected by 2020. Revenue from care is forecast to to hit $300 million in 2016.
The healthcare industry in Saudi Arabia remains the largest in the region, with a projected CAGR of 9.2 percent from 2015 to 2020.
The report said: The government’s plans also include the construction of 132 hospitals, five new medical cities providing a total of 6,200 beds in hospitals and clinics, and expanding the existing medical cities in Makkah and Riyadh.”
Compound annual growth of 7 percent will see UAE join Qatar in registering the fastest growth as both countries seek to capitalise on an emerging medical tourism industry in the region.
In Qatar the report notes: “Allocations to the healthcare industry’s budget increased from $3.9 billion in 2014 to $4.3 billion in 2015, as Qatar prepares to double the number of health facilities by 2022.”(Continued below promotion)
“Millions of dinars will be invested in health centres and hospitals across Bahrain over the next 10 years,” says the report. “Bahrain has several healthcare projects lined up for completion in 2015. In addition, the government plans to build a long-term care facility centre, along with a number of other health centres in the northern part of the country, for $36.9 million.”
Oman is spending heavily as well: “The Ministry of Health is currently embarking on important health projects, which is estimated to cost a total of $189.6m… there are also several projects related to health centres and other rehabilitation and expansion projects in the pipeline, which amount to $104m.”
In Kuwait the report concluded “the supply of the healthcare facilities in the country is yet to match the population growth. In order to tackle this undersupply of healthcare facilities, the government has initiated the implementation of nine hospital expansion projects, which are expected to add a total of 5,000 beds to the existing capacity in addition to building new hospitals.”
“Close to 70 mega-hospital projects are under construction, each of which are valued at over US$100 million, and there are a further 280 smaller hospital projects mentioned in the report as being under construction,” said Josine Heijmans Event Director for The Big 5
The Ventures Middle East Onsite report, entitled GCC Healthcare Construction Market Outlook, can be downloaded FREE