Over 700 healthcare construction projects, worth an estimated US$65 billion, which are currently underway in the GCC states, should provide a much-needed boost to the health sector in the region.
The latest report on status of the healthcare sector in the GCC, by Business News Construction (BNC), a leading Middle-East project database for new business opportunities and market analysis, found that 133 of the upcoming health projects were each worth over $100 million.
Pointing to a growing population, aging demographics, potential for medical tourism and government led initiatives, to provide quality healthcare services, the report noted that healthcare economy in the GCC is expected to register a strong growth in the coming years.
The report added that medical treatment, hospital activities and allied human health activities in the Gulf are likely to reach $71 billion by 2020, a 76 percent increase from $40.3 billion in 2015.
Kuwait, which makes up around 11 percent of the value of all healthcare projects in the GCC, has doubled its budget for the ministry of health in the past five years and now allocates around KD2 billion to healthcare in the state. The ministry is in the process of building several new hospitals as well as expanding and renovating many existing hospitals and medical centers.
Revitalized spending in this sector is expected to create a lot of opportunities for both local and international organizations operating in the construction of healthcare facilities. Today, Kuwait’s public healthcare sector accounts for more than 80 percent of healthcare spending in country but in future the private sector is expected to play a more prominent role.