More hospitals needed to support growing demand in MENA

The MENA region is lagging behind other developed economies and needs more hospital beds.

The Middle East and North Africa (MENA) region is lagging behind other developed economies in terms of healthcare infrastructure provision, with more hospital beds needed.

A report by real estate consultancy JLL highlights a shortage of hospitals, clinics and other healthcare facilities across MENA, and states that with medical tourism a priority for many regional governments, there is a pressing need to improve provision.

Per capita spending on healthcare in the UAE is only 17 % of what is being spent in Switzerland, and MENA has an average of 1.9 hospital beds per 1,000 population in comparison to an OECD (Organisation for Economic Cooperation and Development) average of 4.8 beds.

To maintain the current provision rate of hospital beds per person, 10,500 additional beds are needed in the five major cities across the region – Dubai, Abu Dhabi, Riyadh, Jeddah and Cairo – over the next five years, which equates to 70 additional hospitals, assuming a typical ratio of 150 beds per hospital.

If the region were to increase the provision of hospital beds in line with the current OECD average, a huge 470,000 additional beds would be required, which equates to 3,130 new hospitals across these five major cities by 2022.

The region also has an ageing population with the number of people over 65 years predicted to increase by 4.4 % per annum to 26 million over the next five years and associated healthcare provision required.

The UAE has a reputation for transparency and an investor-friendly environment, and has attracted a number of overseas healthcare providers to the country, such as the Cleveland Clinic in Abu Dhabi and the Moorfield’s Eye Hospital in Dubai.

Abu Dhabi has placed healthcare among its nine strategic pillars in its 2030 Economic Vision, providing further potential opportunities for investors to build new facilities and upgrade existing ones.

Developers of larger planned communities in the region are also recognising the need to incorporate clinics and other non-specialist healthcare facilities in their schemes.

The main challenge to the healthcare sector in the UAE is meeting the high standards required to become an international healthcare hub.