The value of contract awards for healthcare projects in the Gulf region will increase by $1.45 billion in 2015, according to a new report.

According to the Ventures Middle East Onsite report, around $5.9 billion in contracts were awarded in 2014, but that figure is set to rise to $7.3 billion in 2015, as population growth, higher per capita income, and life expectancy drive demand for healthcare services.

“Populations across the GCC are increasing in number, disposable income, and lifestyle and what this latest report demonstrates is that higher birth rates and life expectancies are creating demand for hospitals, health centres, and maternal, child, and elderly care services,” said Josine Heijmans, event director at dmg events and The Big 5.

The healthcare industry in Saudi Arabia is projected to remain the largest in the region, and register an annual growth of 9.2 percent from 2015 to 2020.

Compound annual growth of 7 percent will see UAE join Qatar in registering the fastest growth as both countries seek to capitalise on an emerging medical tourism industry in the region.

According to the report, the UAE is building more than 20 hospitals to care for the half a million medical tourists that are expected by 2020, with medical revenues to hit $300 million by 2016.

At the same time, the report states that Bahrain, Oman, and Kuwait are also expected to register a significant rise in project completions in 2015.

“Close to 70 mega-hospital projects are under construction, each of which are valued at over $100 million, and there are a further 280 smaller hospital projects mentioned in the report as being under construction,” said Heijmans.

The report comes ahead of the Middle East region’s biggest construction event, The Big 5, which will be held at Dubai World Trade Centre on November 23-26.