· GCC
hospital contract awards to rise to US$7.3bn in 2015
· KSA largest
market, UAE and Qatar to offer fastest growth
· Nearly 70 US$100m-plus
mega hospitals under construction
29 October, Dubai – A new report commissioned by The Big 5 has said
that the value of contract awards for healthcare projects will increase by
US$1.45 billion in 2015.
According to the Ventures
Middle East Onsite report, entitled GCC
Healthcare Construction Market Outlook, around US$5.9 billion in contracts were awarded in 2014, but that
figure is set to rise to US$7.3 billion in 2015, as population growth, higher
per capita income, and life expectancy drive demand for healthcare services.
“Populations across the
GCC are increasing in number, disposable income, and lifestyle and what this latest
report demonstrates is that higher birth rates and life expectancies are
creating demand for hospitals, health centres, and maternal, child, and
elderly care services,” said Josine Heijmans, Event Director at dmg events and The Big 5.
The healthcare industry
in Saudi Arabia is projected to remain the largest in the region, and
register a CAGR
of 9.2 percent from 2015 to 2020. Compound annual growth
of 7 percent will see UAE join Qatar in registering the fastest growth as
both countries seek to capitalise on an emerging medical tourism industry in
the region.
According to
the report, the UAE is building more than 20 hospitals to care for the half a
million medical tourists that are expected by 2020, with medical revenues to
hit US$300 million by 2016. At the same time, the report states that Bahrain,
Oman, and Kuwait are also expected to register a significant rise in project
completions in 2015.
“Close to 70
mega-hospital projects are under construction, each of which are valued at
over US$100 million, and there are a further 280 smaller hospital projects mentioned
in the report as being under construction,” said Heijmans.
The report comes ahead of the Middle East region’s
biggest construction event, The Big 5, which will be held at Dubai World
Trade Centre on 23-26 November. Some 85,000 participants are expected to
attend the event, which will feature 30 live demonstrations and 75 free
CPD-certified seminars led by experts from across the industry.
The headline event will welcome more than 3,000
exhibitors who will showcase some of the most innovative technologies from
around the world, and their applicability in GCC markets.