Dubai: With most of the older commercial and residential areas in the city offering limited space for new builds, UAE’s health care operators are in a race to take up locations in New Dubai or on the peripheries.
“Almost every other week we are looking to identify free plots that can serve the resident base in Dubai Marina or JBR ... it’s a difficult process because we have to be sure about details such as the traffic impact study, etc,” said Dr. Shajir Gaffar, CEO of VPS Healthcare — Dubai and northern emirates. “Because of the nature of the developments there, any operator will have to make sure there is unimpeded and quick access from all sides. It’s also the reason why we had to decline three of the proposals we were shown.
“These — and some of the other emerging areas in Dubai — are still underserved by health care facilities, especially multi-speciality ones. Only the clinics are there and some centres specialising in single specialities.”
VPS Healthcare — which operates the super-premium Burjeel Hospital in Abu Dhabi and the first to introduce a concierge service — has a $1.5 billion outlay over a five-year period to develop its network in the UAE, some of the other Gulf states and India. Last month, it opened a 70-bed multi-speciality hospital in Bur Dubai’s Consulate Area under the ‘Medeor’ branding. “The Bur Dubai location gives an opportunity to test the hub-and-spoke model in the emirate when new locations are identified.”
Health care operators suggest there are possibilities even outside of New Dubai areas. “The peripheries such as Al Ghusais still offer excellent prospects to create 100-bed facilities,” said Wilson T. J., Group Director at Aster DM Healthcare. “A 100-bed fits perfectly with the economies of size that health care operators would like to have. These days, there’s limited possibility for a 250- or 300-bed investment, especially from a private player ... 100-beds or thereabouts would be the right mid-size.”
Industry sources say that the financing requirements to develop such projects have not undergone any drastic changes. “Land values had undergone some changes, but have stabilised, the cost of equipment and personnel too are in control,” said Wilson. “Between now and 2020, health care developments will be fast tracked in line with the way the city itself will grow into newer areas.
“Any gaps that may exist will be filled up quite quickly. It will depend on how quickly operators are able to make a move to pick up the spots.”
