Posted on February 03, 2017

GCC countries are expected to award healthcare contracts worth $6.5bn in 2017 based on current project schedules, according to a new report.  In 2016, projects worth $4bn were awarded in this region. According to Ventures ONSITE, which tracks construction projects, the GCC healthcare construction industry is all set to continue its healthy position in 2017, fuelled by demographic and macroeconomic factors. 

The major hospital projects expected to be awarded to contractors in 2017 include the MoI hospital in Doha and a new mental health and psychiatry hospital in Al Wakrah, the report states, adding that Qatar accounts for 14% of the value of hospital projects in the six GCC countries and 8.1% of the number of such projects. “GCC governments are introducing regulatory changes to improve efficiency and quality of healthcare services. There are global and regional investors already active in the region’s healthcare sector, with more international, local and regional players preparing to take advantage of the favourable climate,” the report noted. 

Sixty hospital and related projects were completed in the GCC in 2016 with another 92 expected to be finished in 2017. Also, the number of hospital beds is expected to reach 114,000 by 2020 compared to 101,797 in 2015. “There is a pipeline of nearly 400 planned and ongoing hospital or healthcare-related projects valued at $57bn in the GCC. Out of 400, there are 37 projects in the bidding and evaluation stage that will be awarded soon to contractors,” said Mibu John, managing director of Ventures ONSITE. “The value of contracts expected to be awarded to contractors in 2017 is estimated at $6.5bn as per the current project schedules. This is against $4bn worth of projects awarded in 2016.”

source: Gulf Times