KARACHI: The UAE-based MBF Group has signed an agreement to construct a medical city in Islamabad, the federal capital city of Pakistan, at an initial cost of $970 million (UAE dirham 3.562 billion).
Analysts described the project as the single largest Foreign Direct Investment (FDI) by any UAE entity in decades. Work on the project is expected to start within the next two months.
A statement from the group said that Sheikh Mohammed Bin Faisal Al Qassimi, founder and owner of the MBF Group, had promised that the new university hospital would offer the most advanced levels of health care services.
“The medical city will feature the country’s first medical mall, therapeutic and recreational areas, a regional cardiology, and an orthopedic center,” the statement added.
The Group has signed an agreement with Intelligence Bureau Employee’s Cooperative Housing Society (IBECHS) and Nixon to establish an integrated medical city within the 100,000-square meter Gulberg Greens in Islamabad.
The project will include a 400-bed university hospital that will offer the most advanced levels of health care services.
The city will house a nursing college and is expected to serve around one million patients and clients on a monthly basis.
“There is a need for such advanced hospitals to serve Pakistan’s growing population. The group will manage the city’s 1,000 medical, technical and administrative staff, who will all be Pakistanis, and is responsible for providing medical equipment and beds,” said Al Qassimi.
The hospital aims to provide international-standard care. The project looks to meet the growing demand for medical services in Islamabad and provide specialist health services that are in short supply.
Nixon will represent MBF Group in Pakistan, medical city being their first joint project.
The construction on the project is expected to start in next two months after signing of the agreement.
“Recently MBF Group and IBECHS have signed the agreement. We are expecting that the work on construction of medical city would start in next two months”, Mohsin Fareed, an official of Gulberg Green Islamabad, an IBECHS project, told Arab News.
The medical city would serve the twin cities of Islamabad and Rawalpindi and adjoining areas.
“UAE is actively investing in Pakistan’s health, education and infrastructure sectors. The medical city would also provide health facilities to people of Azad Jamu and Kashmir, Northern Areas and Khyber Pakhtunkhwa KP,” said Dr. Mirza Ikhtiar Baig, Chairman of Pakistan-UAE Business Council.
“This could be the single largest amount of the FDI ($970 million) by any investor from the UAE probably in a decade. Groups from UAE have been the major investors in Pakistan for many years, but investment (levels) had come down in recent times. However, it is very encouraging sign from investors, given the fact that Pakistan is a much faster-growing market and has a greater population than the Middle East,” said Khurram Schehzad, senior financial analyst and chief commercial officer at JS Global Capital.
Flows of FDI to Pakistan have been declining for many years, mainly due to security concerns. However, the improved security situation is now encouraging foreign investors.
Pakistan received $2.8 billion FDI during the last fiscal year to June 30, 2018, with $128 million of FDI in the first month (July 2018) of the current fiscal year.
The share of UAE in FDI was $1.8 million. China has been the single largest investor, investing $80 million in July 2018.
