GCC healthcare projects value tops $61bn, says report

The total value of 707 healthcare projects exceeded Dh223.5 billion ($61 billion) in January 2018, according to a report by BNC Network, a construction intelligence platform in the region. Of these, 445 projects worth $51.9 billion are hospital projects while the remaining 262 projects worth $9 billion are medical clinics or research centres, stated the company in its latest GCC Construction Intelligence report. Out of the 707 projects in the GCC, 264 worth $24.7 billion are under construction, 227 projects worth $12.7 billion are in the design and pipeline while there are 75 healthcare projects with a combined estimated value of $1.76 billion in tender. The healthcare industry constitutes 4 per cent of all active projects in the GCC's urban construction sector and in dollar terms, these projects account for 5 per cent of the total estimated value, stated the report. In the fourth quarter of 2017, eight healthcare contracts with a combined estimated value of $813.9 million (Dh2.98 billion) were awarded in the GCC. In the fourth quarter of 2017, the number of healthcare contract awards in the GCC increased by 33 per cent as compared to the fourth quarter of 2016. CEO Avin Gidwani pointed out that mandatory health insurance scheme, that is gradually bringing the entire population of the GCC under medical insurance cover, was driving investment in hospitals, clinics, pharmacies and other healthcare facilities. "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," he noted. “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,” stated Gidwani. In December, the number of healthcare projects in the GCC decreased by 1 per cent as compared to November 2017 and the total estimated value of these projects decreased by 2 per cent. Notable projects like New Khasab Hospital located in Oman worth $197.5 million was awarded during December, 2017, stated the BNC report. Six healthcare projects with a combined estimated value of $601 million were completed last month,