Investors are getting more upbeat about the healthcare market in the GCC region, as Gulf states push for transformation within the critical sector as part of their diversification agenda, according to a new JLL report.

The real estate and investment management firm noted that more regional players in the healthcare sector are acquiring either local companies or international brands to expand their portfolios.

The surge in investor confidence is driving demand across the healthcare value chain in the region, with the market forecast to hit $135 billion by 2027, JLL said in a report on Monday.

Healthcare spending within GCC alone is poised to reach $124 billion in 2028, according to Sandeep Sinha, Head of Healthcare Consulting – MEA, JLL.

“Under their economic diversification agenda, countries in the GCC are driving the transformation of this critical sector within infrastructure development, clinical capabilities, human capital development, digital transformation and establishment of healthcare innovation hubs,” Sinha said.

“This has attracted more private equity companies and witnessed an increase in active deal making, further positioning the region as a key healthcare player on the global stage.”

The company recently advised a consortium led by UAE-based Fajr Capital to take a majority stake (65%) in the ownership of the GCC business of Aster DM Healthcare.

(Writing by Cleofe Maceda; editing by Seban Scaria)