According to BNC Network’s latest GCC construction intelligence report, the total estimated value of 707 GCC healthcare projects is about $60.9 billion as of January.
According to the report, 445 projects together worth $51.9 billion are hospital projects, while the other 262 projects – worth $9 billion – are medical clinics or research centres.
Out of the total projects, 264 (worth $24.7 billion) are in construction, while 227 projects worth $12.7 billion are in the design and pipelines stages. Another 75 projects with a collective estimate value of $1.76 billion are in tender.
Out 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 total value of $813.9 million were awarded in the GCC, a 33 percent hike compared to the same time period in 2016.
Avin Gidwani, CEO of BNC Network said, “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.”
With higher oil price, the GCC will see higher investment in infrastructure, housing and these activities will provide new employment which will increase demand for more healthcare projects.
He added that, “Historically, the GCC healthcare sector was driven by the public sector hospitals that offered subsidised medical care and almost free medicines. 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 reduced by 1 percent as compared to November, with the total estimate value down by 2 percent.
Also, six healthcare projects with a total estimated value of $600.5 million were completed throughout the course of December.
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