gcc healthcare construction market final

8/19/2019 Gcc Healthcare Construction Market Final

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ubai World Trade Centre

-26 Nov 2015


-26 Nov 2015


3 -26 Nov 2015

www.thebig

GCC Healthcare Construction

Market OutlookSe tember 2015


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Dubai World Trade Centre

3-26 Nov 2015 www.thebi

The GCC healthcare construction market is set to register strong growth in the coming years du

ising population and per capita incomes. The contractor awards for the GCC hospital construc

rojects are expected to increase from US$ 5,850 million in 2014 to US$ 7,300 million in 2015.

Kingdom of Saudi Arabia (KSA) is projected to remain the largest market in the region with the U

nd Qatar expected to be the fastest growing markets for the sector.

TRENDS AND DEVELOPMENTS IN THE GCC HEALTHCARE MARKET

he GCC healthcare sector will continue its strong growth in the coming years. The GCC countries depend heavil

overnment funding to meet healthcare needs, which have embarked on ambitious healthcare infrastructure buil

rograms supported by larger healthcare budgets. According to GCC Healthcare Sector Report by Alpen Capita

pril 2014, the GCC healthcare market is projected to grow at 12 percent per annum to US$ 69.4 billion by 2018.

ccording to Ventures Onsite MENA Projects Database, there are nearly 70 mega hospital projects in the GCC tha

nder construction and each valued at over US$ 100 million. Additionally there are several smaller scale hosrojects under construction. The total number of hospital projects in the GCC in all stages (planned, design, tende

onstruction and under construction) of development is nearly 350.

he contractor awards for the GCC hospital projects are expected to increase from US$ 5,850 million in 2014 to

,300 million in 2015. The Kingdom of Saudi Arabia (KSA) is projected to remain the largest market in the region

he UAE and Qatar are expected to be the fastest growing markets for the sector. Bahrain, Oman, and Kuwait

nticipated to register a significant jump in project completions in 2015 over 2014.

he growth drivers for the GCC hospital construction projects are rapidly growing population and per capita inco

sing life expectancies, high incidence of lifestyle-related diseases, and ambitious medical infrastructure projects byGCC governments.

Medical tourism is emerging as an important trend amongst GCC countries, further fuelling growth of the health

egment. The UAE and Oman are leading the way in tapping into this potential resource for growth with

overnments providing specialised facilities to support the trend. For example, the UAE is building 22 hospitals to

are of half a million medical tourists by 2020.

n addition, the GCC governments are also looking at public private partnership (PPP) models to help reduce ov

nancial risks, enhance the quality and range of services, gain expertise, and prompt innovation. The private sec

hare in the GCC healthcare market is expected to reach 33 percent by 2020.


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Synopsis of outlook for each GCC

country


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UAE

The UAE is one of the most developed markets in the GCC region. Healt

spending in the UAE is expected to reach US$ 10.8 billion by 2015. The

government is also liberalising policies to attract foreign investments, in ord

improvise the healthcare standard and boost the healthcare industry.

healthcare market is expected to grow at a compound annual growth

(CAGR) of around 7 percent from 2015 to 2020. Colliers International in i

2014 healthcare report estimated that the value of the UAE’s private hos

property is expected to reach US$ 2.83 billion and the estimated numb

private beds will reach 5,188 by 2020.

Dubai has witnessed a sudden spurt in private hospitals in recent years. In

the Dubai Health Authority (DHA) issued 301 new licenses and approve

new hospitals in the private sector to cater to the needs of a steadily gro

population. Many of them are under construction and some are operational.

As part of its efforts to encourage medical tourism, the UAE governme

aiming to increase the number of private and public hospitals. The governm

vision of making the country a top destination for medical tourism over

countries such as Germany and US will be one of the future growth strategi

the healthcare sector. For example, Dubai can expect at least half a m

healthcare tourists to be part of the massive influx of visitors arriving fo

Expo 2020. According to the Dubai Health Authority, revenues from me

tourism in Dubai are predicted to increase to US$ 299.5 million in 2016.

The major hospital construction contracts awarded in the UAE in 2015 inc

the following:

Gulf Medical University Hospital in Ajman (US$ 95 million)

Expansion of Zulekha Hospital in Dubai (US$ 54 million)

Al Bustan Specialty Hospital in Mussafah (US$ 30 million)

ADNOC Medical Centre in Khalidiya (US$ 15 million)

The healthcare

market is expected

to grow at a

CAGR of 7 percent

from 2015 to 2020

and revenues from

medical tourism in

Dubai are

predicted to

increase to US$

299.5 million in2016.


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KSA

The KSA is by far the largest healthcare market in the GCC as it accoun

more than half (52.3%) of the region's market. The country’s healthcare ind

has been witnessing significant growth due to rising population, prevalen

lifestyle and infectious diseases, longer life expectancy and govern

initiatives for improving healthcare infrastructure. A 10-year developmen

(2010-2020) is in place which aims to create five specialised hospital hubsRiyadh in the centre, Makkah in the West, Asir in the South, Dammam i

East and Al Jouf in the North. New initiatives have been taken for building

hospitals and primary healthcare centers. Government hospitals constitute

than half of the total number of hospitals in the country. Private hospita

registering rapid growth in regions such as Jeddah, Riyadh, Makkah. Acco

to figures from Alpen Capital, based on data from the International Mon

Fund, WHO and MoH , KSA’s healthcare spend is set to reach a total of

31.5 billion by 2018. KSA’s healthcare industry is slated to grow at a CAG

9.2 percent from 2015 to 2020.

In KSA’s record 2015 US$ 229 billion budget, healthcare and social a

received the second-biggest allocation, after education, amounting to US$

billion, representing 18.6 percent of the total and an increase of 48 percent

2014 budget. In February 2015, the ministry announced that work is underw

complete the construction of 88 centres holding 70 beds and focusing on a

range of specialist treatments. The government’s plans also include

construction of 132 hospitals, five new medical cities providing a total of

beds in hospitals and clinics, and expanding the existing medical citi

Makkah and Riyadh. Moreover, in the coming years, the number of p

hospitals and beds will increase significantly as the demand for healthcare

is rising at a fast pace than the growth in the number of public sector hospita

The major hospital contracts awarded in the KSA in 2015 include 500

Mental Health Hospital in Taif (US$ 98 million) and Mouwasat Hospital

Khobar (US$ 65 million).

Bahrain‘s Economic Vision 2030 lays special emphasis on the health sMillions of dinars will be invested in health centres and hospitals across Ba

over the next 10 years. Bahrain has several healthcare projects lined u

completion in 2015. In addition, the government plans to build a long-term

facility centre, along with a number of other health centres in the northern p

the country, for US$ 36.9 million. One of the major hospital contracts aw

in Bahrain in 2015 is the US$ 105.3 million Mohammed bin Khalifa Spec

Cardiac Hospital in Awali.

KSA’s healthcare

spend is set to

reach a total of

US$ 31.5 billion

by 2018 and is

expected to grow

at a CAGR of 9.2

percent from 2015

to 2020.

Bahrain Millions to be

invested in the

health sector in

the next 10 years.


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Oman

In its 2015 budget, Oman has allocated US$ 4.2 billion or 11.3 percent o

total outlay towards the healthcare sector, which translates into de

healthcare projects expected to be revisited in 2015. Oman is now targ

10,000 new clinics over the next 35 years, in line with the country’s long

strategy for the sector, Health Vision 2050. It also has short-term five-year hdevelopment plans. The main focus for the next five-year plan includes:

Construction of 7 hospitals, 5 health complexes and 27 health centre

Expansion of few of the existing health institutions in all governorat

The Ministry of Health is currently embarking on important health pro

which is estimated to cost a total of US$ 189.6 million. Apart from the cu

projects being undertaken, there are also several projects related to health ce

and other rehabilitation and expansion projects in the pipeline, which amou

US$ 104 million. This is all part of the government’s Eighth Five -Year Plawill place Oman as the next medical hub in the region. The budget o

Ministry of Health will have to almost double by 2020 (US$ 12.9 billion

the US$ 6.47 billion in the Eighth Five-Year Plan), which could see the p

health sector taking on a greater role. The number of hospital beds requir

meet the demand is expected to increase to an estimated 6,300 by 2015.

Allocations to the healthcare industry’s budget increased from US$ 3.9 bill2014 to US$ 4.3 billion in 2015, as Qatar prepares to double the numb

health facilities by 2022. Accordingly, funds have been allocated to comple

Sidra Medical and Research Center; expand facilities at the Hamad Ge

Hospital and the Hamad Medical Corporation (HMC); establish a dedi

hospital for workers; and build new health centers.

Qatar’s National Vision 2030 sets out the government’s goal of improvin

health of the country’s population by developing a world-class and integ

healthcare system.

Qatar’s Public Works Authority (Ashghal) had invited proposals by 11th A

2015 for pre contract professional consultancy services for design and ge

supervision of a new 250-bed hospital adjacent to Qatar University.

enabling works contractors are preparing to submit bids for another As

tender for the National Center for Cancer Care and Research.

The Ministry of

Health’s budget

will have to almost

double by 2020,

which could see

the private health

sector taking on a

greater role.

Qatar Allocations to the

healthcare sector

increased to US$

4.3 billion in 2015,

as Qatar prepares

to double the

number of health

facilities in the

country by 2022.


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KuwaitThe budget forecast for 2015-16 is expected to be close to US$ 6.6 bi

Kuwait nationals are entitled to free medical treatment at government faci

while expats are expected to pay an annual fee to access public healt

facilities. The country is divided into five health regions: Kuwait City, Al J

Jabriya, Reqqa and Farwaniyah. Each offers a general hospital providingoutpatient service and 24-hour emergency services. Kuwait’s governme

responsible for over 80 percent of the total investment in the healthcare s

The private healthcare sector is estimated to take a share of 15-20 percent o

healthcare spending.

However, the supply of the healthcare facilities in the country is yet to matc

population growth. In order to tackle this undersupply of healthcare facilitie

government has initiated the implementation of nine hospital expansion pro

which are expected to add a total of 5,000 beds to the existing capaci

addition to building new hospitals.

Moreover, the government has also announced a number of new projects

constructed across the country, based on the public-private partnership (

model, which is expected to bolster the service quality, while meetin

demand for healthcare facilities.

To tackle theundersupply of

healthcare

facilities, the

government has

initiated the

implementation of

Nine Hospital

Expansion Projects, which

are expected to

add a total of

5,000 beds to the

existing capacity.


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Major GCC Hospital Construction

Projects


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MAJOR HOSPITAL CONSTRUCTION PROJECTS ACROSS THE GCC, SEPTEMBER 2015

Project Name Country Client Est. Value

(US$ Mn)

Status

Military Medical City in Riyadh - Phase 1 Saudi Arabia Ministry of Defence and Aviation, Riyadh 3,800 Construction

Sidra Medical and Research Centre Qatar Qatar Foundation for Education Science

and Community Development

2,400 Construction

King Abdullah Bin Abdulaziz Project For

Development of Security Forces Medical Complexes

Saudi Arabia Ministry of Interior, Riyadh 1,813 Construction

Sultan Qaboos Medical City Complex Oman Ministry of Health, Oman, Muscat National

Development and Investment Company

(Tatweer)

1,500 Planned

Hospital Complex in Barka Oman Ministry of Health and Medical Education,

Iran

1,500 Design

King Abdullah Medical City - Makkah Saudi Arabia King Abdullah Medical City, Makkah,

Ministry of Health

1,400 Tender for

Construction

New Jahra Hospital (NJH) Kuwait Amiri Diwan, Ministry of Public Works

(MPW)

1,266.53 Construction

New Al Ain Hospital UAE Seha - Abu Dhabi Health Services, Abu

Dhabi General Services PJSC (Musanada)

1,089 Construction

Jaber Al Ahmed Al Sabah Hospital Kuwait Ministry of Health, Ministry of Public

Works (MPW)

1,057 Construction

New Medical City and Trauma Mass Casualty

Hospital

Qatar Public Works Authority (Ashghal) 1,000 Design

Farwaniya Hospital Expansion Kuwait Ministry of Health, Kuwait 924.75 Construction

Mafraq Hospital in Abu Dhabi UAE Bumrungrad International, Seha - Abu

Dhabi Health Services, Mafraq Hospital

871 Construction

Al Adan Hospital Expansion Kuwait Ministry of Health, Kuwait 800 Construction

New Sultan Qaboos Hospital in Salalah Oman Ministry of Health, Oman 700 Tender for

Construction

New Hospital Complex for Sheikh Khalifa Medical

City (SKMC)

UAE Seha - Abu Dhabi Health Services 680 Tender for

Construction

urce: Ventures Onsite Projects Database: www.venturesonsite.com
http://www.venturesonsite.com/http://www.venturesonsite.com/http://www.venturesonsite.com/http://www.venturesonsite.com/

gcc healthcare construction market final

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