Saudi Arabia’s Ministry of Health has “suspended” a medical tower in Riyadh, according to a spokesperson at the ministry.

The $200m project, which was set to be a 400-bed hospital building within the King Saud Medical Complex in Riyadh, has been suspended due to budgetary issues, said the spokesperson.

In 2016 to date, there has been $2.1bn-worth of healthcare projects put on hold, according to regional projects tracker MEED Projects. This figure includes the $1.2bn King Khaled Medical City in Dammam, which was put on hold after contractors submitted bids for the main construction contract.

Also in August, the $290m King Faisal Tertiary Pediatric Care Hospital, which is being developed in the capital, was put on hold.

Saudi Arabia’s healthcare market is forecast to reach $27.4bn in 2020, registering a compound annual growth rate (CAGR) of 11 per cent from 2015.

This growth is expected to be achieved through increased private sector participation, and as a result a number of healthcare and hospital schemes in the kingdom are being put on hold while the authorities look for alternative financing solutions.