Youssef Ouchagour, construction industry analyst at Timetric’s Construction Intelligence Center, looks at the current state of the healthcare construction market and presents five of the largest healthcare projects currently under construction in the Gulf Cooperation Council (GCC) region.
Building adequate and effective healthcare facilities has become an urgent priority in the GCC region as the pressure continues to grow on the existing healthcare infrastructure due to a number of regional factors, including rapid population growth, higher life expectancy, a higher per capita income and a rise in lifestyle related diseases.
GCC healthcare construction market outlook
According to Timetric’s Construction Intelligence Center (CIC) project database, there are 119 active healthcare projects in the GCC countries with a combined value of $46bn. As expected, the majority of these projects are located in Saudi Arabia, the country with the largest population in the GCC, followed in order by the United Arab Emirates, Kuwait, Oman, Qatar and Bahrain.
40% of active projects in the GCC region, with a combined value of $21bn) are under execution, with the remaining 60% of projects at various pre-execution stages, with a combined value of $25bn. This shows that there is a wealth of future opportunities within the healthcare sector for the GCC construction industry.
The expected growth of the Healthcare Sector in the GCC region over the next few years will be mainly driven by the GCC governments’ efforts to strengthen and modernise their healthcare system — 68% of the active Healthcare projects in GCC countries are publicly funded projects; these have a combined value of $39bn.
Privately funded projects represent 25% of the total number of active healthcare projects in the region and have a combined value of $4.5bn. The total investment in healthcare projects through public/private partnership is around $2.2bn. The number of projects funded by the private sector is set to grow over the next few years due to the high demand for high quality healthcare facilities and services and the rise of the medical tourism trend in the region. The same is expected for projects funded through public/private partnerships as the GCC governments are looking for alternative ways to fund healthcare projects due to budget restraints.
* Data provided by Timetric's Construction Intelligence Center.
Military Medical Complex – Saudi Arabia
The Saudi Ministry of Defence General Directorate of Medical Works (GDMW) is undertaking the construction of a Military Medical Complex at the premises of the King Khalid International Airport in Riyadh, Saudi Arabia. GDMW is the second largest provider of medical services in the Kingdom with 26 hospitals and more than 140 clinics.
The project involves the construction of a comprehensive medical complex, over an area of 9M m2 located on the Riyadh Airport highway, near the Princess Noura University. The project will provide specialized care to military personnel, their families and national leaders and will include a 4,000-bed hospital, an auxiliary medical zone, an education and academic area, a housing and recreational area in addition to administrative buildings, warehouses and utility systems. The Military Medical Complex will eventually be home to 25,000 people including students, doctors, nurses and staff members.
The $7.2bn project will be implemented in two phases. The first phase of the project will create 1,500 beds, the second phase will increase the capacity of the complex to 4,000 beds.
CallisonRTKL (former RTKL) have developed the project’s master plan. Zuhair Fayez Partnership Consultants and UHS – Universal Hospital Services were appointed to work on the detailed designs of the project. In March 2015, Saudi Binladin Group was awarded the contract, worth $3.8bn, for the first phase of the project.
When completed, the complex will contribute to the expansion of the healthcare infrastructure in Saudi Arabia, thus reducing the mounting pressure on the Saudi healthcare system. In addition to providing medical services to its users, the facility aims to become a hub of medical research and education.
New Al Jahra Hospital – Kuwait
The Ministry of Health (MoH) in association with the Ministry of Public Works (MPW) in Kuwait, is undertaking the construction of a hospital at a site adjacent to the existing Al Jahra Hospital in Al-Qasr, Al Jahra district located 30 Km West of Kuwait City.
The Al Jahra Hospital project was initiated by the Emir of Kuwait, Sheikh Sabah Al Ahmed Al Jaber Al Sabah, as a response to the growing need for a new state-of-the-art healthcare facility in Al Jahra. The project is also in line with the Ministry’s plan to adopt the World Health Organisation’s proposal of allocating at least 22 hospital beds for every 10,000 people by 2030.
The development will act as an expansion of the existing Al Jahra Hospital — it will offer a range of medical services and act as a trauma centre for the Al Jahra district. The new hospital, valued at $1.28bn, will be built on an area of 235,000m2 and will include a 14-floor main hospital building with 1,200 beds, a dental centre with more than 100 clinics, a regional health administrative building, a central services station and public and staff park buildings.
Major departments within the hospital include: accident and emergency with a helipad on the roof, separate adult and paediatric treatment areas, over 20 outpatient clinics, outpatient procedures including endoscopy, pulmonary and cardiology, radiology and nuclear medicine, same day medical observation unit, a modern surgical suite with 20 operating rooms, including four hybrid rooms, and a women’s centre.
Design consultants working on the design of the New Al Jahra Hospital include TRO JB, PACE and DNA Barcelona. Bexel Consulting was appointed as a consulting engineer for the project in order to monitor its construction from start to finish using 3D and 4D building information modelling (BIM). In February 2015, Mohammed Abdul Mohsin Al Kharafi & Sons was awarded the design-build contract. Construction work on the project is ongoing. The development is expected to be complete in the first quarter of 2018.
Al Ain Hospital Expansion – Abu Dhabi
Abu Dhabi General Services Company (Musanada), the company in charge of delivering and maintaining Abu Dhabi’s government assets, is expanding Abu Dhabi’s Al Ain Hospital. Once complete, the new expansion will be handed over to Abu Dhabi Health Services Company (Seha), the company that owns and operates all public hospitals and clinics across the emirate.
The new hospital will provide integrated medical services to the people living in Al Ain City, the second largest city in the emirate of Abu Dhabi, addressing the need for additional healthcare facilities due to the region’s rapid population growth.
The new $1.2bn hospital expansion, which stretches over an area of 350,000m2, will include a main hospital building, a logistics centre, a 60MW power plant and an underground car park for 1,500 cars.
When completed, the new facility will have the first stroke unit in the UAE, a high tech cardiology unit and specialized trauma, and orthopedics and sports medicine units. The new facility will also include a research and training centre for healthcare professionals, which will be affiliated with the United Arab Emirates University.
The capacity of the new hospital expansion is 719 beds — 484 beds will be used for the general medicine, surgery, maternity and children units, 67 beds for the intensive care unit, 142 beds for medical rehabilitation and 26 beds for VIP suites and royal patients. The new hospital expansion and the clinical services it provides will comply with the latest and highest international practices and standards.
The design of the project has been prepared by a joint venture (JV) of Switzerland’s ICME Healthcare, Germany’s Faust Consult Architects & Engineers and Germany’s Obermeyer Engineering Consulting. Allen & Shariff International has been appointed as the project management consultant (PMC) and Strabag as the enabling works contractor.
In December 2013, a JV comprising Arabtec Construction and Constructora San Josa SA was appointed as the project’s engineering, procurement and construction (EPC) contractor. Construction works are underway and completion of the project is scheduled for Q4 2018.
King Faisal Medical City – Saudi Arabia
The King Faisal Medical City is being developed by the Saudi Ministry of Health in the city of Abha, the capital of the province of Asir, located in the South West of Saudi Arabia. When completed, it will provide to the people living in the province easy access to healthcare. The project is part of the late King Abdullah's vision to create world-class healthcare centres throughout the Kingdom.
The King Faisal Medical City will be built on an area of 262,836 m2 and will be implemented in two phases. The first phase involves the construction of the Central Tower, a 500 bed main hospital building. The second phase involves the construction of two additional wings, the North and South Towers, to house five speciality hospitals and associated facilities: cardiology (200 beds), neurology (150 beds), oncology (200 beds), rehabilitation (200 beds) and ophthalmology (100 beds).
In addition to the medical buildings, the development will also include an administrative, laboratory and research related buildings, a convention centre, a mosque, a hotel, retail outlets and housing for the staff.
HDR, Inc. has been appointed as the project’s design consultant, Zuhair Fayez Partnership is the lead consultant and Hill International is the management consultant. Al-Fouzan Trading & General Construction Co. was awarded the EPC contract for the first phase. Construction works on the first phase are scheduled to be complete by early 2018. The second phase is expected to be finished in 2020.
Royal Oman Police Hospital – Oman
Royal Oman Police (ROP) is building a healthcare complex in Muscat to provide medical care to its staff and their families. The hospital is to be built in phases over an area of 1M m2 in the Airport heights area in Muscat, Oman.
The first phase of the project involves the construction of the main hospital building, which will accommodate 400 beds and will be composed of a number of specialized hospitals, based on a concept called ‘Hospitals within the Hospital’. The specialized hospitals will be spread over 6 floors and include a cancer centre, a trauma centre, a children’s clinic, a women’s clinic, a cardiac centre, a surgery department and a VIP Hospital which will provide medical care for highly ranked members of the Royal Oman Police.
In addition to the specialized services mentioned above, the hospital will provide ambulatory care and will include orthopaedic units as well as diagnostic and treatment zones. Other facilities to be built as part of this project include research and education facilities, multi storey accommodation and residential units for staff, substations, a sewage treatment plant and a multi-storey car park.
A JV composed of Option One International WLL and Al Manarah Engineering Consultancy has been appointed as the project’s engineering and design consultant. The $553M construction contract for the first phase of the hospital has been awarded to Galfar Engineering and Contracting Company in January 2015. Construction activities on the first phase and planning activities on second phase are underway. The project is expected to be complete in Q4 2020.
* For more information on the construction industry, visit the Timetric's Construction Intelligence Center.