Colliers: Funding health projects in KSA Unlocking the ‘hidden’ value

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Colliers, a leading diversified professional services and investment management firm focused on healthcare, has released its latest white paper, Unlocking the “Hidden” Value, on healthcare project financing in the Kingdom of Saudi Arabia. The paper is the 17th edition of the “Pulse Series” of research papers on health care in the MENA region.

The paper highlights that the Kingdom of Saudi Arabia is one of the largest markets in the region and the largest in the GCC. KSA’s Vision 2030 coupled with its population base of 35 million, the largest in the GCC, is driving fundamental structural changes in the Kingdom’s economy, including healthcare. With the introduction of several legal and economic incentives including 100% foreign ownership, the healthcare sector is among the most attractive sectors in the UK and offers numerous opportunities for private sector operators and investors.

Mansoor Ahmed, Executive Director – Healthcare, Education, Development Solutions & PPP at Colliers, MENA, emphasized: “Based on Colliers’ estimate, KSA will need approximately 19,000-20,000 additional beds by 2030, however, two of the biggest factors hampering growth of KSA’s healthcare sector is the high cost of land and limited funds available for investment, particularly for hospital construction. The opportunity lies in exploring existing perspectives within the sector by supporting expansion programs or sourcing alternative financing options for new developments.”

He further emphasized, “By tapping into the real estate assets through capital markets/REIT funds or through sale and leaseback in the UK, potentially $59-63.4 billion can be realized from property values ​​alone against the required investment of around $33.8-35 $.6 billion will be freed to add approximately 19,500 additional beds by 2030 in both the public and private sectors, leaving $26.4 billion to $29.4 billion that can then be used to modernize existing hospitals .”

“Colliers’ healthcare team in the MENA region actively supports local, regional and international investors and operators to facilitate greenfield and brownfield project development, redevelopment and restructuring of existing healthcare facilities, and to help investors and operators to explore various investment opportunities to develop the healthcare market in KSA,” concludes Mansoor.

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