GCC healthcare industry set to thrive in coming years UAE and Saudi Arabia lead surge in healthcare spending in the Gulf as the health expenditures set to reach $135.5billion by 2027
O ver the past few years, the Gulf Cooperation Council (GCC) countries have been characterised by a growing economy, rising income levels and a growing population base. The improving healthcare infrastructure, coupled with the existing profile of the region as a tourism hub, has led to the development of medical transformation within the GCC. The GCC the healthcare sector has witnessed a major expansion due to significant investments over the time. Higher spending by governments and greater involvement of the private sector have helped cope with the booming demand and improve the quality of health infrastructure in the GCC. The region has 750 plus hospitals with more than 110,000 beds in addition to a large number of primary healthcare centres, clinics and laboratories with no end to the expansion in sight, according to an Alpen Capital report. With a massive pipeline of an estimated 170 healthcare projects across the GCC with a combined value of $55 billion, the scale of the region’s healthcare services is going to expand even further. Saudi Arabia has the highest number of healthcare projects under construction, accounting for 19.2%, followed by Kuwait with 12.9%, the UAE with 10.3%, and Oman with 2.1%. That brings a lot of business opportunities not only for architectural consultancies but also for a range of suppliers specialising in healthcare projects, especially hospitals and clinics. UAE leads healthcare In the UAE, providing world-class healthcare is one of the six pillars of the National Agenda in line with the UAE Vision 2021, which was unveiled by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in 2010. As part of the National Agenda, the UAE government has been working in
collaboration with all health authorities in the country to have all public and private hospitals accredited according to clear national and international quality standards of medical services and staff. This is the reason that the UAE’s healthcare sector continues to lead regionally and globally in medical services and scientific achievements. The Legatum Institute Prosperity Index Report has ranked the UAE in the top position in three key global competitiveness indexes in the healthcare sector: early detection programmes, scope of medical coverage and antenatal care coverage. Accounting for over a quarter of the GCC healthcare spending, the UAE government has long been the primary investor in this sector. Looking to promote the private sector growth, Dubai Healthcare Corporation has published a roadmap for public- private partnerships in new hospital projects to address future needs of the emirate. According to Alpen Capital, Dubai alone will require additional 8,300 physicians and 8,800 nurses by 2025. Demand has been growing especially in rehabilitation clinics, mental healthcare facilities and dialysis centres, according to Dubai Healthcare Corporation, offering new opportunities to investors in the sector. The share of the country’s population above the age of 65 is forecast to increase to 4.4% by 2030 from 1.1% at present, according to the World Bank, stimulating demand for healthcare and geriatric care in particular. By 2026, the UAE’s overall healthcare spending is forecast to reach around 6% of the country’s GDP, according to KPMG, up from nearly 4.3% in 2018. That translates to up to $26 billion in spending by 2028, a report by UAE Ministry of Economy says. Some 700 healthcare projects are under development in the country with total investment of $60.9 billion, mostly carried out by the private sector, according to the report. The UAE also leads the GCC’s healthcare spending growth rate with a projected investment of $30.7 billion in the sector by 2027, marking an annual growth rate of
36 Federation of GCC Chambers
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