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
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