A total of 264 projects are under construction, with 227 in the design and pipeline stages
The total value of 707 GCC healthcare projects is over $60.9 billion as of January, according to BNC Network’s latest GCC construction intelligence report.
According to the report, 445 projects collectively worth $51.9 billion are hospital projects, while the other 262 projects – worth $9 billion – are medical clinics or research centres.
Of the total projects 264 (worth $24.7 billion) are under construction, while 227 projects worth $12.7 billion are in the design and pipelines stages. Another 75 projects with a combined estimated value of $1.76 billion are in tender.
Of the entire GCC urban construction sector, the report estimates that healthcare industry projects constitute 4 percent of all active projects, and 5 percent of the total value.
In Q4 2017, eight healthcare contracts with a combined value of $813.9 million were awarded in the GCC, a 33 percent increase compared to the same time period in 2016.
“Mandatory health insurance scheme, that is gradually bringing the entire population of the GCC under medical insurance cover is driving investment in hospitals, clinics, pharmacies and other healthcare facilities,” Avin Gidwani, CEO of BNC Network, said. “With higher oil price, the GCC will see increased investment in infrastructure, housing and these activities will create new employment that will increase demand for more healthcare projects.
Historically, the GCC healthcare sector was driven by the public sector hospitals that offered subsidised medical care and almost free medicines,” he added. “However, there has been a fundamental shift in the healthcare system, where the employers are now being made responsible for the employees’ medical care and welfare. This necessitated the introduction of the mandatory health insurance schemes and created a demand for increased number of hospitals, clinics and pharmacies.”
In December, the number of healthcare projects in the GCC decreased by 1 percent as compared to November, with the total estimate value falling by 2 percent.
Additionally, six healthcare projects with a collective estimated value of $600.5 million were completed throughout the course of December.