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The Potential of Establishing a Hospital in SOKHNA360

The Egypt Healthcare Market is projected to grow at a CAGR of around 10.79% during the forecast period, i.e., 2023-2028. The massive presence of public and private healthcare facilities, including specialist hospitals, clinics, etc., significantly supported the revenue expansion of the Egypt Healthcare industry during the historical period. Egypt has significantly aided in developing a solid reputation as the region's center for medical tourism due to the country's satisfactory reputation in the Middle East and Africa region, its affordable pricing on trained medical personnel and infrastructure, as well as its simpler visa requirements, compared to other countries in the region.

Healthcare Sector Update in Egypt: Recent Figures and Trends:

Overall Growth:

The Egyptian healthcare sector is experiencing steady growth, fueled by population increase, rising disposable income, and government initiatives.
Market size: Estimated at $26 billion in 2023, projected to reach $35 billion by 2025.
Growth rate: Averaging 7-8% annually, outpacing the national GDP growth.

Public vs. Private Healthcare:

Public healthcare: Dominant provider, covering around 70% of the population through a national health insurance scheme.
Private healthcare: Growing rapidly, driven by increased demand for premium services and specialized care.
Private market share: Expected to reach 30% by 2025, attracting significant investments.


Inequitable access to quality healthcare: Rural areas and underserved communities face shortages of healthcare personnel and facilities.
Out-of-pocket spending: UHI doesn't cover all expenses, leading to a financial burden for some patients.
Brain drain: Medical professionals emigrating for better opportunities, impacting workforce availability.
Infrastructure and equipment limitations: Modernization of hospitals and equipment needed to meet growing demand.

Factors Impacting Future Healthcare Demand in Egypt:

Source: Egypt Healthcare Sector Overview | Colliers 2021/2022  

Healthcare key indicators in Egypt:

Although the private sector is the largest player with 63% of total hospitals, it is highly fragmented with only 31 beds per private hospital compared to 96 beds per government hospital and 209 beds per parastatal hospital. This offers significant opportunities for consolidation in the private sector through Merger and Acquisition (M&A).
Source: Egypt Healthcare Sector Overview | Colliers 2021/2022
As many emerging markets face uncertain prospects and economic pressures as a result of the global pandemic, Egypt which requires large investment in the healthcare sector will have to focus on PPPs and privatization to raise the funds required to fulfil the demand gap.
PPP and privatization is expected to bring in much needed new technologies, an improvement in operational efficiencies and international linkages with key healthcare providers from Europe, USA and Asia.
  • Egypt’s healthcare sector, particularly the private healthcare sector, offers several lucrative opportunities for developers, investors and operators. However, it also possesses several challenges, such as high costs of capital and a brain-drain of qualified doctors and paramedical staffs typically to the GCC countries.

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