$61bn GCC healthcare projects in the pipeline for 2018
Number of hospital projects in the GCC reached 445, with estimated value exceeding $51.9bn, BNC Network says
A total 707 GCC healthcare projects worth more than $60.9bn (AED223.50bn) are currently under development.
According to the latest GCC Construction Intelligence report issued by BNC Network, 445 projects worth $51.9bn (AED190.47bn) are hospital projects.
The remaining 262 projects are worth $9bn (AED33bn) are medical clinics or research centres.
Out of the 707 projects in the GCC, 264 worth $24.7bn (AED90.64bn) are under construction, 227 projects worth $12.7bn are in the design and pipeline, while there are 75 healthcare projects with a combined estimated value of $1.76bn (AED6.46bn) are in tender phase.
The healthcare industry constitutes 4% of all active projects in the GCC's urban construction sector and in dollar terms, these projects account for 5% of the total estimated value, according to BNC Network’s report.
In the fourth quarter of 2017, eight healthcare contracts with a combined estimated value of $813.9m (AED2.98bn) were awarded in the GCC.
During this period the number of healthcare contract awards in the GCC increased by 33% as compared to the fourth quarter of 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,” said Avin Gidwani, chief executive officer of BNC Network.
“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 added.
In December, the number of healthcare projects in the GCC decreased by 1% as compared to November 2017 and the total estimated value of these projects decreased by 2%.
Notable projects like the New Khasab Hospital located in Oman worth $197.5m was awarded during December 2017.
Six healthcare projects with a combined estimated value of $600.6m were completed during December 2017.