A total of 37 mega hospital projects worth $28.2bn are already underway in the Gulf region
Healthcare projects worth $55.2 billion are in the pipeline for the Middle East and North African regions, an industry report has found.
A total of 37 mega hospital projects worth $28.2 billion are already underway in the Gulf region, with these expected to add 22,500 hospital beds to existing capacity, the Alpen Capital Healthcare Report said.
The rest of the year is expected to be even more robust for the healthcare projects market, the report added, pointing out that major projects are being undertaken throughout the region.
In the UAE, some of the high-profile projects coming up include Al Ain Hospital, Al Ain; Burjeel Medical City, Abu Dhabi; Gulf Medical University Hospital, Ajman; Mediclinic Parkview Hospital, Dubai; and King’s College Hospital, Dubai.
In Saudi Arabia, major projects include King Abdullah Bin Abdulaziz Project for Development of Security Forces Medical Complexes; King Khaled Medical City, Dammam; King Faisal Medical City, Asir; Mouwasat Hospital, Al Khobar; and Amal Mental Health Hospital, Taif.
According to global property consultants JLL, who are the official content partners for Building Healthcare, it is not surprising that more real estate players in MENA are seeking to diversify into the healthcare sector.
“The healthcare sector offers the ability for real estate investors to participate in a growing market backed by the government, where long-term leases can be structured to major regional and international healthcare providers,” said Craig Plumb – head of research, Mena – JLL.
“From a developer’s perspective, healthcare facilities can contribute to the overall attraction of residential communities and also comprises a potential source of demand for commercial space within office or retail projects. While major hospitals may be too specialist for many contractors, clinics and other less specialist medical uses are well within the capabilities of more general contractors.”