Healthcare contracts worth $6.5bn to be awarded in GCC
The GCC countries are expected to award healthcare contracts worth US $6.5 billion in 2017 as per current project schedules.
This is against the US $4-billion worth of projects awarded in 2016, according to Ventures Onsite MENA Projects Tracker.
The GCC healthcare construction industry is all set to continue its healthy position in 2017 fuelled by demographic and macroeconomic factors.
GCC Governments are introducing regulatory changes to improve efficiency and quality of healthcare services. There are global and regional investors already active in the region’s healthcare sector, with more international, local and regional players preparing to take advantage of the favourable climate.
Some of the recent overseas entrants to the UAE healthcare sector include Bascom Palmer Eye Institute and Kings College hospital. The sector also witnessed a surge in mergers and acquisitions in the past 2 years like NMC Healthcare acquiring Fakih IVF, a provider of fertility services and ProVita Medical Centre, provider of long-term care, and also South Africa-based Mediclinic International’s acquisition of Al Noor Hospitals Group.
“There is a pipeline of nearly 400 planned and on-going hospital or healthcare related projects valued at US$57 Billion in the GCC. Out of 400, there are 37 projects in the bidding and evaluation stage that will be awarded soon to contractors.”, said Mibu John, Managing Director of Ventures ONSITE- construction project intelligence portal, “The value of contracts expected to be awarded to contractors in 2017 is estimated at US$6.5 Billion as per the current project schedules. This is against US$4 Billion worth of projects awarded in 2016”.
Sixty hospital and related projects were completed in the GCC in 2016 with another 92 expected to be completed in 2017. The number of hospital beds is expected to reach 114,000 by 2020 compared to the 101,797 in 2015.