Healthcare construction contracts to rise by $1.45bn
Ventures Middle East Onsite report, commissioned by The Big 5 show, revealed the value of contract awards for healthcare will increase by $1.45bn in 2015.
According to the report, GCC Healthcare Construction Market Outlook, contracts worth $5.9bn in 2014 is set to rise to $7.3bn this year as population grows, with higher per capita income and life expectancy driving demand for healthcare services.
Event director at dmg events, organiser of The Big 5, Josine Heijmans said: “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.”
The report states that UAE is building more than 20 hospitals with the expectancy of half a million medical tourists by 2020. Medical revenues for next year is expected hit $300m 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.
Even though Saudi Arabia remains the largest healthcare industry in the region with compound annual growth of 9.2% from 2015 to 2020, UAE will be joining Qatar with a CAGR of 7%. Both countries aim to capitalise on the emerging medical tourism industry in the region.