Huge op­por­tu­nity for pri­vate sec­tor in Egypt’s health­care in­dus­try: JLL

PUB­LIC EX­PEN­DI­TURE ON HEALTH­CARE AV­ER­AGES AROUND 5.2% OF THE EGYP­TIAN STATE BUD­GET IN 2016

The Daily News Egypt - - Business - By El­sayed Soly­man

Egypt’s health­care sec­tor presents sig­nif­i­cant op­por­tu­ni­ties for pri­vate sec­tor in­vestors, ac­cord­ing to a new re­port re­leased by JLL at Cityscape Global in Dubai.

The re­port, called “Healthy Re­turns”, high­lights op­por­tu­ni­ties for in­vestors and other real es­tate play­ers in the health­care mar­ket across MENA over the next five years as the re­gion re­sponds to an ag­ing pop­u­la­tion and in­creased de­mands for hos­pi­tals and other health­care fa­cil­i­ties.

Pub­lic ex­pen­di­ture on health­care in Egypt is low, av­er­ag­ing around 5.2% of the Egyp­tian state bud­get in 2016, which re­quires ad­di­tional in­vest­ment to be at­tracted from the pri­vate sec­tor, says the re­port.

“The dated pub­lic health­care in­fra­struc­ture in Egypt pro­vides op­por­tu­ni­ties for pri­vate in­vestors, with many ex­ist­ing fa­cil­i­ties in dire need of ren­o­va­tion and up­grade,” said Ay­man Sami, the coun­try head of Egypt at JLL.

“The sheer num­ber of hos­pi­tals and clin­ics avail­able pro­vide many op­por­tu­ni­ties for ren­o­va­tion and ex­pan­sion projects for those in­vestors un­will­ing to in­vest in new or green field projects,” he added.

Ac­cord­ing to the re­port, the flota­tion of the Egyp­tian pound has made in­vest­ing in Egypt more af­ford­able than in the past, mak­ing it a more at­trac­tive mar­ket for over­seas in­vestors.

The gov­ern­ment has also taken a series of mea­sures to at­tract fur­ther for­eign in­vest­ment, in­clud­ing a new In­vest­ment Law, which aims to unify reg­u­la­tions, in­tro­duce non-tax in­cen­tives, es­tab­lish the Gen­eral Author­ity for In­vest­ment and Free Zones, and strengthen in­vest­ment pro­tec­tion guar­an­tees.

The mi­gra­tion of Egyp­tian cit­i­zens from ru­ral ar­eas has also in­creased pres­sure on health­care fa­cil­i­ties in Cairo.

“As with other mar­kets across MENA, Cairo is ex­pe­ri­enc­ing in­creased de­mand for pri­vately op­er­ated fa­cil­i­ties to help cope with the grow­ing chal­lenges within its health­care sec­tor,” said Sami.

THE SHEER NUM­BER OF HOS­PI­TALS AND CLIN­ICS AVAIL­ABLE PRO­VIDE MANY OP­POR­TU­NI­TIES FOR REN­O­VA­TION AND EX­PAN­SION PROJECTS

Ay­man Sami, the coun­try head of Egypt at JLL

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