Construction Business News ME - January 2016

January 2016

THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS

ionals s s e f o r of AEC p n o i t a c u t the ed a k o o l A

700+ Projects Delivered

LEED Platinum, LEED Gold and LEED Silver Capability

s n o i t u l o S d e t a r teg End to End In

project experience

130+ years of

ISO 9001, 14001 and OHSAS 18001 certiďŹ ed

Pioneering Engineering Construction since 1881

For over 130 years, Drake & Scull International PJSC has been shaping skylines and transforming the lifestyle of communities around the world.

Drake & Scull is an industry leader, with a proven history of delivering more than 700 projects through its General Contracting, Engineering, Rail, Oil & Gas, Water and Wastewater Treatment and Infrastructure development business streamlines across the region.

www.drakescull.com

contents 6 8 16 18

Editor’s Note News Supplier News In Person

24

Analysis 30 Melanie Mingas looks 34

at the new c&D waste regulations

Stuart Matthews examines Dubai’s new publicprivate partnership law which aims to draw foreign investment and international expertise to the emirate’s infrastructure market

Project Review 40 Tabanlioglu Architects

talk about its upcoming project in Dubai Marina, Crystal Towers, and how culture and sustainability play a major role in design

42 Construction Business

News ME reviews the production of the much-anticipated Riyadh Metro

44 Dubai Parks and Resorts

will be the largest integrated theme park destination in the region.

Raed Kajoor Al Nuaimi, CEO of Dubai Parks and Resorts, talks about the challenge of delivering a megaproject

34

cover story

24 A spotlight on the education of young AEC professionals and how skills could be honed through qualification, training and experience

construction business news me January 2016 3

44

Managing Director Walid Zok walid@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Director Wissam Younane wissam@bncpublishing.net Group Publishing Director Diarmuid O'Malley dom@bncpublishing.net Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818

50 50 TAKE 10

Construction Business News ME looks into the top 10 upcoming projects in the Gulf region to watch out for

COMMENT

Group Editor Melanie Mingas melanie@bncpublishing.net Editor Lorraine Bangera lorraine@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Sales Manager Mostafa Abdo mostafa@bncpublishing.net +966 56 6695 333

Group Sales Manager Joe Taphouse Joe@bncpublishing.net

54 As the GCC goes through a rough patch, Ben Hughes writes how

Sales Manager Vishvanath Shetty vish@bncpublishing.net

60 As we see a dramatic increase in urbanisation, Baharash

Marketing Executive Mark Anthony Monzon mark@bncpublishing.net

smart contracting could be useful in times of uncertainty

Bagherian examines the missing link in empowering the next generation of cities

56 Q&A

Ideal Standard MENA’s Antonios Mourikis talks about penetrating further into the market through innovation

62 TRADE

With bold initiatives to fast-track the pace of industrialisation through Special Economic Zones (SEZs), Malcolm Dias analyses how bold initiatives by the government of Afghanistan could benefit regional investors and the Middle East’s logistics and construction companies

64 MACHINERY

Ramdas Rao, from Acore Global, talks about how innovation in machinery drive business

66 Editor’s Pick

Autodesk University Extension Dubai 2015 threw a special focus on design and how it helps shape the world. Experts from the firm highlight how technology could help propel society

+971 52 6745378

c o n t ribu t o rs Stuart Matthews

Marlow McGuinness Ltd ------Joanne Bladd

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4 construction business news me January 2016

editor’s note

Spotlight on skills As the construction industry progressively matures with the turn of every New Year, the need for more (and better) AEC professionals also increases.

When asked, most employers say they are looking for the right skillset while hiring new candidates or promoting existing employees.

This month we look at the real meaning of “skills” and how to measure them. Is skill defined by the knowledge an individual possesses or the number of years of work experience held? Does the hunt for “skills” consider the amount of effort an individual puts into his work, or the amount of workload it is possible to handle?

A graduate, fresh out of university, will have sufficient qualifications to be appointed to a junior position. To build on that, the graduate needs a job that will add to this existing knowledge.

Learning and development professionals would agree with me when I say that by merely showing up for a nine to five job and completing a task list does not improve your skills as a professional.

In times like this, when competition in the market is fierce, young professionals have to put in extra effort to make sure they are on top.

During the job hunt alone, human resources departments would agree that it’s a rat race out there, and no one is willing to lose. Applicants line up one after the other with impressive qualifications from prestigious universities or a resume packed with years of experience.

The need to be qualified, experienced, desirable and marketable is

6 construction business news me January 2016

increasing at an alarming rate.

With no set guideline on how to employ “the best”, companies have turned more demanding. For instance, earning a Master’s degree has been given a lot of weightage.

The blatant demand for “highly educated” individuals has made universities across the world increase the number of courses.

Billboards advertising master degrees aren’t uncommon in most cities worldwide. It almost seems like institutions are capitalising on the trend.

Students, desperate to be selected, are shelling out between $30,000 to $120,000 for a Master’s degree. Two decades ago a house mortgage would be the most common debt; today it is probably the student loan.

Companies in the region also have stringent expectations of candidates for senior positions. Frequently demanding 10 to 15 years of work experience, leaving younger professionals with a fading motivation to climb up the corporate ladder.

Demanding for either one isn’t wrong or unjustified. However, motive of the candidate plays a bigger role than companies account for. Every individual who has worked for a decade is not necessarily better than an individual who has worked for five, nor is every postgraduate better equipped than a graduate.

Ultimately, true development comes from a choice. A choice to challenge yourself, to take criticism positively and to learn from past mistakes. In my opinion, such everyday choices lay a better foundation to expand your skillset, than a rigid Situation Vacant list.

Lorraine Bangera Editor

construction business news me January 2016 7

NEWS

Dubai government incentivises companies with labour welfare As part of the Taqdeer Award launched by the Dubai government on 16 December 2015 at the Ritz Carlton DIFC, construction companies will receive government incentives if they invest in labour welfare.

The award will concentrate on the construction sector in its first year, inviting companies to participate in the Award by submitting a comprehensive submission document, which will be thoroughly evaluated by a Judging Committee.

Based on the number of points they receive in the evaluation, companies are awarded a rating ranging from one to five stars. The programme is open to Dubai-based companies in the construction sector that employ manual workers.

Companies in the construction sector involved in civil, electrical and mechanical work that have been operating for at least two years and have

executed a minimum of two projects in the last two years are eligible for applying to the Taqdeer Award.

In the first year of the Award, only companies involved in the construction of buildings, roads, bridges, tunnels, plumbing installation and power generation plants are eligible for applying.

ENEC completes major milestone at Barakah NPP’s second unit The Emirates Nuclear Energy Corporation has completed several construction milestones on Unit 2 of the upcoming Barakah Nuclear Power Plant (Barakah NPP) in Abu Dhabi.

Some of the milestones include the completion of the 2,000 tonne containment liner plate for the Reactor Containment Building (RCB) including placement of the upper dome, lifting the pressuriser into place and lifting the roof frame for the Unit 2 main control room.

The plate is a cylindrical steel shell that forms the inner wall, ceiling and floor lining of the reinforced concrete reactor containment building. Its structure measures nearly 60 metres in height (77 metres including dome) and 45 metres in diameter. It has to be constructed in multiple stages and parts, including 19 separate liner rings – each three metres in height – to complete the 2,000 tonne structure.

The process has taken 15 months to complete with a team of more than 240 construction workers and supervisors.

The project is part of UAE’s peaceful nuclear energy programme and aims to include four nuclear energy units in 8 construction business news me January 2016

According to local paper Gulf News, 283 companies in the construction sector can apply for the award, which will rank them on a scale of 1,000 points. Under the system, the companies with four or five rating will receive priority on government projects. Also companies with the top points will have a competitive advantage in bidding for international contracts.

Barakah NPP

the Western Region of Abu Dhabi by 2020. Once completed, the reactors will have a combined generating capacity of approximately 5,600MW and will supply nearly one-quarter of electricity demand in the UAE. Barakah Unit 1 is more than 81% complete and Unit 2 is almost 60% complete.

ENEC CEO Mohamed Al Hammadi said: “Each unit’s progression remains scheduled at approximately 12 months apart. This allows our highly skilled workforce to move efficiently and deliberately through their tasks to ensure the safe and timely delivery of the entire project.”

STR Global reports over 500 hotels under contract for construction Jordan

3,055 rooms in nine hotels

Qatar

6,976 rooms in 29 hotels

Egypt

3,934 rooms in 13 hotels

Saudi Arabia

34,415 rooms in 72 hotels

UAE

27,458 rooms in 94 hotels

Cluttons’ report highlights gap in Abu Dhabi real estate Lack of affordable housing in Abu Dhabi is a major opportunity for developers to fill the gap, according to real estate consultancy Cluttons.

The firm’s latest report, Abu Dhabi 2015/16 Winter Property Market Snapshot, points out that house prices have increased by 34% since 2010 and there is a clear need for affordable houses.

Edward Carnegy, head of Cluttons Abu Dhabi, said that the issue of affordability has been building for some time, initially following the introduction of the Federal Mortgage cap and doubling of property registration fees. “These had the desired effect of cooling the market, but now many people are forced to pay premium rents, limiting their ability to become owner occupiers in the long term. This presents a major opportunity for developers to deliver housing that is ‘genuinely affordable’, while still of a high quality, with the

potential to offer flexible access to home ownership through models such as ‘rent-to-own’.”

Though new legislation on fixed quotas for affordable housing are being currently drafted, details are not yet confirmed.

Carnegy said another factor that is affecting the market is the drop in oil prices. “It continues to impact the rate of job creation in Abu Dhabi, which has filtered through to the residential market in the form of weakening demand leading to an unsurprising slowdown.” construction business news me January 2016 9

NEWS

Louvre Abu Dhabi commences installation of natural stone The much-awaited Louvre Abu Dhabi is in its last stages of construction, ready to be handed over in mid-2016, according Emirates News Agency.

Chair of Tourism Development and Investment Company (TDIC), Ali Majed Al Mansoori, along with other officials from TDIC and Abu Dhabi Tourism and Culture Authority, toured the Louvre Abu Dhabi construction site last month.

The officials witnessed the latest construction progress taking place across the museum’s building, which included the commencement of the installation of 30,000 square metres of natural stone paving.

The construction was awarded to and Arabtec-led JV with Constructora San Jose SA and Oger Abu Dhabi LLC in 2013.

Latest progress on the project included the completion of the outer cladding on its 180 metre wide dome. Currently work to the museum’s main gallery, basement levels, entrance and administration buildings, is ongoing.

Next on the agenda: the removal of the 14-metre deep temporary concrete hydraulic cut-off walls currently built in the sand so that work could commence on dry land.

Al Mansoori said: “Louvre Abu Dhabi is one of the most significant and highly anticipated projects of the coming year and we are monitoring its progress very closely with our partners and contractors. Construction of the museum is in its final stages and we are looking forward to handover of the building taking place mid-2016.”

10 construction business news me January 2016

DSE secures AED245m project in Abu Dhabi Drake and Scull Engineering (DSE) has been awarded an AED245m contract to deliver MEP works for an Abu Dhabi-based project.

According to the contract, DSE will render engineering, detailing, procurement, testing, commissioning, and handover services for the project’s MEP, along with fire protection and natural gas systems.

Ahmad Al Naser, managing direc-

tor of Drake and Scull Engineering, said: “We are delighted to continue our trend of securing milestone projects which has helped us achieve AED2.53bn in project awards across the UAE, Kuwait and Oman in 2015.”

About the project he said that though it may be very technically challenging, it will be a showcase of core engineering (MEP) and design expertise.

GCC municipalities urged to reduce construction waste

GCC nations rank among the top ten in waste generation per capita, with construction and demolition (C&D) debris representing the largest proportion of waste in the Middle East, according to Waste and Recycling Middle East.

Limited related regulations in the region could also be a key reason causing the accumulation of the C&D waste in landfills.

Most experts in waste management say that recycling C&D waste can conserve raw material, energy, and water, as well as reduce the production of greenhouse emissions and other pollutants that can contribute to climate change.

The Waste Management Master Plan, being developed by Tadweer for Abu Dhabi, includes studies about the best practices, laws and policies related to waste management and the best cost efficient waste processing solutions. The

Plan’s outcome will also propose methods to reduce commercial and industrial waste and raise awareness about the importance of reducing waste especially that of construction and demolition works.

H.E. Eisa Saif Al Qubaisi, general manager of Tadweer, said: “We are aiming to reduce C&D waste levels.

We hope to demonstrate how efficient C&D waste recycling can have a positive impact on the region’s environment, society, and economy during EcoWaste 2016.”

As part of the annual Abu Dhabi Sustainability Week hosted by Masdar, EcoWASTE will run from 18-21 January 2016, co-located with the World Future Energy, and the International Water Summit (IWS), at the Abu Dhabi National Exhibition Centre.

Turn to page 30 for an analysis of the C&D regulations.

construction business news me January 2016 11

NEWS

UPC completes Al Saad master plan for UAE Nationals in Al Ain Xxxxxxxxxxxxxx

Abu Dhabi Urban Planning Council (UPC) announced Al Saad master plan located in Al Ain has been completed. The development is a new residential community with 306 plots for UAE Nationals built between two existing residential neighbourhoods of Ramlat Al Saad.

The new project will increase the existing population of 2,200 residents by approximately 3,130 residents following completion. It has been developed by the UPC in consultation with the Abu Dhabi Housing Authority (ADHA) and Al Ain City Municipality.

H.E. Ali Khalifa Al Qemzi, executive director of planning and projects at ADHA, said: “The Al Saad project which will be planned, designed and built in accordance with the Abu Dhabi National Housing Guidelines for Integrated Communities issued by the Abu Dhabi Housing Authority that aims at creating sustainable and complete housing communities.

“Abu Dhabi General Services Company (Musanada) has been tasked with the detailed master planning, design and execution of the project and it is scheduled to be completed in October 2018 in accordance with the approved Project Plan.”

Al Saad is one of 17 settlements in Al Ain that are included within Plan Al Ain 2030, joining Al Salamat and Al Yahar as dominant Emirati housing areas in the western sub-region.

DSCE launches State of Green Economy Report in Paris On 7 December 2015, vice chair of Dubai Supreme Council of Energy (DSCE) H.E. Saeed Mohammed Al Tayer launched the State of Green Economy Report 2016 in the World Climate Summit 2015 in Paris. The launch was in the presence of Ólafur Ragnar Grímsson, President of Iceland, and Dr Sultan Al Jaber, UAE Minister of State and Special Envoy for Energy and Cli-

mate Change.

The report provides an overview of initiatives that promote innovation and policy tools that help accelerate the process. It serves as a roadmap to establish new, impact-based and marketdriven paradigms to decarbonise the power sector and stimulate the market for energy efficiency.

Al Tayer said: “This report is the first

knowledge product which was developed to collate best practices that will contribute to knowledge sharing for the global good. The subjects in this report are likely to be discussed at the World Green Economy Summit (WGES) on the 5- 6 October 2016 as well as at the Water, Energy Technology and Environment Exhibition (WETEX 2016) on the 4 - 6 October in Dubai.”

KEF chair Faizal Kottikollon awarded at Indian Innovation Awards Faizal E Kottikollon, KEF Holding’s chair and founder, was presented the Construction Innovation Award by the consul general of India Anurag Bhushan at the Indian Innovation Awards held on 1 December 2015, UAE. The award ceremony was hosted by sister publication, Entrepreneur ME at the Jumeirah Golf Estates in Dubai.

The award was an acknowledgement of the vision that Kottikollon displayed in revolutionising the construction and infrastructure industry by the use of advance technology and robotics, which will be incorporated 12 construction business news me January 2016

at the upcoming KEF Modular facility in Jebel Ali- the world’s first fully automated robotics driven facility for modular construction.

The awards committee applauded this new facility as a harbinger of change in the way construction is done, which in turn will benefit other sectors such as healthcare, education and housing.

To read more about the Indian Innovation Awards 2015 pick up a January copy of Entrepreneur ME at local bookstores.

Waseela secures $10m construction packages for integrated systems

Roadwork at Tilal City, Sharjah

Sharjah-based Tilal City completes initial roadworks Sharjah-based developer, Tilal Properties, released a video highlighting the progress made on its upcoming AED2.4bn Tilal City development.

The project was launched last year in Sharjah, and the video showcases the completion of the initial laying of the arterial roads and ongoing works on secondary roads.

Haysam Jazairi, business development executive director at Tilal Properties said: “The completion of the initial phase of roadworks has also paved the way for other significant developments such as the installation of water and sewage pipelines and electric cable. We are in excellent shape to be ready to hand over Zone A and C at the end of next year.”

The project will include 1855 land plots available to GCC nationals as well as UAE residents to buy, lease, and develop properties.

Split into five zones (A-E), the masterplanned development will occupy an area of 25 million sq.ft and provide affordable housing for 55,000 – 65,000 residents in apartments, villas and townhouses.

The firm will be showcased Tilal City at Cityscape Kuwait 2015 and Elite Real Estate Exhibition, both held in December at the Kuwait International Fairgrounds in Mishref.

Information and communication technology firm, Waseela, has reportedly observed a significant increase in demand for converged ICT/ extra low voltage (ELV)/ building management systems (BMS) packages amongst mega buildings under construction in the GCC. It has been awarded $10m worth of construction packages requiring integrated ICT/ELV/BMS systems in UAE, Saudi Arabia, and Qatar.

The company is currently participating and bidding for long-term projects with converged ICT/ELV/ BMS packages, expected to materialise during 20162017 at an approximate value of $50m.

With green and smart buildings currently trending in the GCC construction sector, the role of technology in the construction been expanding. These technologies rely on integrated ICT or extra low voltage (ELV) or building management systems (BMS) systems for its efficient functioning. Converged ICT/ELV/BMS solutions are expected to be a requirement at newly constructed malls, hotels, hospitals, airports, schools, and stadiums.

“In the coming years and as the trends of smart buildings intensify, more converged and integrated ICT/ELV/BMS solutions will emerge requiring more complex and sophisticated engineering and integration capabilities,” said Dr Samer Taha, CEO of Waseela.

FCW shares urban planning strategies with Indian students UAE-based Falconcity of Wonders (FCW) welcomed a student delegation from India’s Centre for Environmental Planning Technology (CEPT) University to highlight urban planning techniques.

Alharith bin Salem Almoosa, vice chairperson and deputy general manager of FCW, presented the FCW project’s phases of development to the group along with its project management strategies.

The students were also taken on a tour around FCW to expose them to urban planning, design, construction and community management techniques implemented for the FCW community.

Almoosa said: “Habitat management is a crucial element of overall project management. Even if a development is grand, beautiful, and strategically located, it holds little value if its living environment is unsatisfactory for the residents.”

Alharith bin Salem Almoosa with Indian student delegation

construction business news me January 2016 13

NEWS

Autodesk University Extension Dubai showcases new technologies Lynn Allen, Autodesk Evangelist giving her key note address at AUx Dubai 2015

Construction update: Aldar reveals residential projects’ progress Hadeel A waterfront community consisting of apartments and villas launched in 2014 and is on track to be completed during 2017. Construction work is proceeding in line, with shoring and piling works now complete and ground floor works commencing last month.

Ansam Aldar’s first residential development on Yas Island, initiated in 2014, is expected to be completed during 2017. Casting of the raft foundation is nearing completion with strong progress on the ground and first floor slabs. The four buildings’ substructures and basements are also nearing completion.

Autodesk held its fourth edition of Autodesk University Extension Dubai (AUx) at the Dubai World Trade Centre on 16 December 2015.

During the event the company presented a number of advances toward the future of making things and new technologies that would help attendees navigate and thrive in this shifting landscape.

Under the theme, ‘Insight, Innovation, Inspiration’, more than 800 of the region’s top design and engineering professionals came together for a hands-on experience exploring advanced technologies.

Louay Dahmash, head of Autodesk Middle East, said: “Technologies like the Internet of Things (IoT), augmented and virtual reality and robotics will change the way engineers and designers work. Places and things are more connected, intelligent and dynamic than ever before. Our event is timely and strategic as there are countless ambitious and futuristic projects underway across the Middle East.”

Last year’s event highlighted design and how it helps shape the world. A key attraction was the ‘Autodesk Gallery,’ that showcased exhibits, including Airbus’ 3D printed concept plane and Soccket — the energy-harnessing soccer ball.

AUx Dubai 2015 also served as a forum for design and engineering professionals to upgrade and validate their skills by obtaining Autodesk Certifications at the event, as well as connecting with peers and experts.

To read more about AUx 2016 and new technologies in construction turn to page 66 14 construction business news me January 2016

Meera Aldar’s first mid-market focussed project, located in Shams Abu Dhabi on Al Reem Island, is expected to be delivered during 2018. With a shoring and piling contract now awarded to Meera, and detailed design and tender documentation phase with the main contractor expected to be appointed by March 2016.

Merief The community of 281 residential plots located in Khalifa City, is scheduled for completion during 2017.

All concept and preliminary designs have now been completed and the detailed design phase is also expected to be completed before the end of 2015 with a main contractor due to be appointed in April 2016.

Nareel Island The master planned community for Emiratis located in Abu Dhabi, and comprising 148 villa plots, is scheduled for delivery in 2017. Aldar is currently focussing on developing the infrastructure and public realm, both of which are in the detailed design stage. The main contractor is close to being appointed, having already awarded the earthworks and marine works tender packages.

SUPPLIERS News

Dorma launches dedicated service contact centre

BASF highlights underground construction technology at ATC 2015 Nick Chittenden recognised at ATC in Abu Dhabi

B

David Tudor

D

orma, access solutions and services provider, launched a service and maintenance contact centre in the UAE in December 2015. The centre aims to aid breakdown response and business needs of its customers.

The centre service available at – 800 DORMA (36762) – will serve the building end users and facilities management segment by offering end-to-end breakdown response support, technical know-how and customer service.

As per industry estimates,

the UAE construction industry is projected to exhibit sustainable growth prospects in the next few year with the percentage of GDP reaching 11.1% percent for 2015 which is likely to add new projects in the region over few years. David Tudor, service and maintenance director at Dorma MENA said: “We recognise that business needs within the construction segment have gone through a major overhaul and are now demanding of more innovation and rapid response.”

ASF, construction chemicals provider, showcased its products for underground construction at the third Arabia Tunnelling Conference and Exhibition (ATC) held in Dubai.

The supplier showcased its Master Builder Solutions portfolio that specifically caters to the regional tunneling industry. One of its products included a sprayed concrete equipment simulator, that increases efficiency and safety when creating monolithic and composite structures.

The company also displayed its comprehensive range of solutions for TBM (Tunnel Boring Machines), waterproofing systems and

injection system products.

Nick Chittenden, regional manager for BASF Underground Construction Middle East, was part of the panel discussion and the Young Engineers Forum. He said: “With our local experts and our globally enriched R&D support teams, we are able to customise for our regional customer as well as the climatic and environmental conditions.”

BASF is contributing 17 of 20 Tunnel Boring Machines (TBM) currently being used in the Doha Metro project.

Its solutions have also been used in the Shis Khorfakkan and Diftah Shis road projects in the UAE.

Hormann introduces new fire-proof doors for construction sites Door manufacturer, Hormann Middle East, has introduced its latest Tubular Frame Fire-Rated quality doors designed to be used in construction sites, factories and shops. The fire-rates or smoke-tight doors and glazing features are available in models of T30, T60 and T90.

Darius Khanloo, managing director of Hormann Middle East, said: “Reliable fire protection calls for adequate new develop16 construction business news me January 2016

ments and improvements to each and every detail.

“Hormann has continually extended its fire protection programme. Today, as a result, we can offer a complete and fully developed range.”

Wide range of reliable fire protection products in the fire-proof programme includes: fully glazed smoke-tight, T30 and T90 tubular frame parts in steel and aluminium,

flush-fitting steel fire doors, and sturdy doors made of steel and stainless steel.

Hormann aluminium fire-rated doors are available either as a coupling construction for simple connection on location, or as complete elements with a vertical or horizontal profile construction. Thus they can be easily matched to the fitting situation at the construction site.

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IN PERSON

A contractor’s dilemma

In the run-up to Dubai Expo 2020 in the UAE, the government has been taking an active role implementing best practice mechanisms across all construction projects. Ali Mirza, general manager of Nurol Construction, speaks with Lorraine Bangera about how this has been affecting contracting firms and advises on how to cope with the transformation 18 construction business news me January 2016

Inside the Bab Al Qasr Hotel - constructed by Nurol Construction

B

ased in Abu Dhabi since 2003, Nurol Construction was set up under the sponsorship of H.H. Sheikh Sultan Bin Khalifa Al Nahyan.

Being new to the market at the time, the firm was offered a lot of help from its mother company in Turkey, Nurol Holding.

Turkish general manager (GM), Ali Mirza, says that when he first moved to the GCC, he missed Turkey and working at Nurol Holding, but in a few weeks he never looked back.

He says: “Turks and Arabs have a similar culture and the same religion, which helps ease the transition.”

Mirza moved to the UAE with the intention to stay a couple of years, fifteen years later he considers himself half local. And he is not alone, the engineers and administrators he brought with him from Turkey happen to love working in here as well.

The firm has worked in multiple projects over the years, and before the crisis had over 16,000 employees under its name. Unfortunately, the number was trimmed down as a result of the crash. Mirza recollects the difficult times and says that though it was a painful experience, it taught them a great deal about survival in construction.

“Throughout the difficult times,”

Mirza says, “Nurol Holding was saving grace. It helped us tremendously during the crisis.”

Today the firm has overcome many obstacles and has a team of 1,600 employees and construction workers. It has worked on road, tunnels and other infrastructure projects, along with highend hotels in Dubai and Abu Dhabi. In total it has completed projects worth $2bn between the two cities, out of which $600m has been in Dubai and the rest in Abu Dhabi.

Nurol has also worked closely with the Abu Dhabi Municipality on several projects including the first connecting bridge between Abu Dhabi and Reem Island. More recently, the firm has worked with Abu Dhabi-based Tourism Development and Investment Company (TDIC) to construct a connecting bridge from Abu Dhabi to the upcoming Louvre Museum. The project was handed over on time in late October last year.

The firm is currently tendering for different jobs and working on a couple of ongoing projects. Mirza reveals it is currently preparing a tender for the Dubai Metro.

A contractor’s point of view As the UAE moves to include several best practices and sustainable procedures in its construction sector, there

Ali Mirza’s top tip: Believe in local markets “The UAE has a local market functioning for over 20 to 30 years, we should really respect that. Instead of looking for materials to be imported it makes more sense to look within the region or nation. This also stands for local talent. It is pointless to get highly qualified engineers from Germany or even Turkey, if they won’t know their way around the local municipality.”

have been a lot of changing regulations and specifications over the last couple of years. According to Mirza, this could happen within the period of a project delivery as well, which makes it tough for the contractor to follow.

He states that because of the constant change it is important to hire help. “We can’t just have one PR for all the procedures. We need one for labour visa, and another that follows up with the utility departments and municipalities, so that we are aware of what has been changed.”

Mirza says that it is not unforeseen to witness a delay in delivery and changes construction business news me January 2016 19

IN PERSON

like these definitely contribute to it.

He discloses that most contractors today don’t admit a specific requested timeline is too short to deliver a project.

“To secure the job, they agree on any specified timeline. Most commonly, contractors take a building contract of just 18 months. However, even if they try their best, the work still goes on for 20 to 24 months.”

There has also been a shortage of materials that have made things harder.

Mirza debates: “Even though everyone knows about the shortage of cement and steel, clients still insists on a short timeline.”

He points out that the market in the UAE has some fierce competition, as hundreds of construction companies flood into the region every year. “Most new companies in the region have no idea about the nature of the job and the basics of working in this region. As a result, they quote ridiculously low prices when the actual cost of the job should be 20 to 30% more.”

He adds: “Most clients don’t know the specifications, how much a project will really cost.”

He explains that it is not easy to compete because these new companies agree to a price that is 30% lower the actual value and a timeline that is six months shorter than other firms. “This doesn’t guarantee getting the job, but it does give the clients and consultants an opening to negotiate.”

Mirza tries to explain that the UAE or the Gulf region is very different than the West. Factors such as the heat in the summer or Ramadan (with shorter working days) has to be taken into account. He claims that if a project has to be completed in 18 months, two months would be nullified because of the summer (which has 13 hours of work) and a month for Ramadan.

“There is only 16 months to complete the project.”

Working in the UAE may have many pros, but comes with its own challenges. The GM says that it has been tough to deal with changes in legislations, changes in labour law, and more. He admits, however, that he wouldn’t have it any other way, as these changes are vital for developing a better system. As 20 construction business news me January 2016

changes occur rapidly across the sector, taking place one after the other, Mirza admits that it has been hard to adjust at the same rate.

Though the company has gone through a lot of tough times, Mirza says that he has hope for a brighter future.

He believes in keeping a strong and motivated team, out of which the tender department is most crucial.

“I think one thing that could really affect everything else, is the tender. The tender must be ready before you finalise on a project,” Mirza concedes. He explains that the contractor needs to understand the tender and clarify with the client as much as possible so that there is nothing missing in the design.

“If you are not clear about the tender, you are bound to end up in a fix later.”

All the cards need to be on the table.

Important factors such as the selection of the material and agreeing on a time-

Tunnel constructed by Nurol from Abu Dhabi to Louvre Abu Dhabi

Bab Al Qasr, constructed by Nurol Construction, would be ready for handover soon

Man behind the team

Bab Al Qasr, constructed by Nurol Construction, would be ready for handover soon

Bab Al Qasr, constructed by Nurol Construction, would be ready for handover soon

line and provisional sum, needs to be discussed. He says: “Of course in huge tenders, there will be things missing here and there. However, for a sizeable tender you have to make precise calculations.”

He states that once the tender is fully ready and understood, execution would be a lot easier.

To execute a great project, one needs

a great tender. Mirza says another factor not considered while tendering is productivity. It is common among contracting firms to get a full batch of workers one month, and expect them to be productive in the following month. He argues: “It would not be possible. It would take at least four to five months.

So when you are tendering you should consider the time.”

When it comes to management techniques, Mirza believes that it is important to be region specific and not keep changing methods every six months.

“There can be a lot of challenging times ahead,” he says. “But it is important to not lose it, be patient and support your team consistently.”

Mirza believes in being approachable with all his employees. He even keeps his office door open as a gesture to invite employees in. He says the only time he works privately is when everyone leaves after work.

He believes in sharing knowledge and experience, knowing your team, and being very hands on.

He even started a team building activity every Ramadan that started off as a means to mingle with other subcontractors and clients, but soon became exclusive to Nurol.

Mirza realised this was a great opportunity to make the team grow closer, so instead he made the Iftar dinner exclusive for Nurol employees only. He says that his team come with their families and they get to really know one another.

“There are some companies where the project manager doesn’t know the GM or vice versa, and they have been working in the same company for five years. I simply couldn’t do that.”

With a strong moral ground, Mirza has led his team through many difficult years. He proudly admits that he or his management team has never received a complaint from any employee who has worked for the firm. One of the key reasons being that every employee and worker has always been paid on time, and he vouches for that.

He humbly smiles and admits that even employees who leave the company, ultimately come back to work for the firm. While most other employees have stuck to the firm from day one of operations.

In Mirza’s books there is nothing that reflects a company better than the satisfaction of employees working in it. construction business news me January 2016 21

COVER STORY

The value of planned construction projects in the GCC is estimated to have reached $172bn in 2015 and, consequently, the number of architecture, engineering and construction (AEC) professionals is growing by the day. This month, Lorraine Bangera goes back to school, to examine AEC qualifications and the educational culture shaping the AEC sector

24 construction business news me January 2016

W

ith a large AEC industry and large projects on the horizon for the Dubai Expo 2020 and Qatar’s FIFA World Cup 2022, the talent present in the GCC region is key to delivering top-notch projects.

Recruiting and career growth in the region varies from company to company, some companies in the GCC focus on qualifications and the others on the number of years of experience.

Goldie Bekin, talent management and development manager for UAE and Oman at AECOM, says that while choosing an ideal candidate in this region, companies focus on the right skillset and are professionally qualified. “I don’t think one aspect is more important that the other, it is the combination of both.”

According to her, entry level graduates use qualification to open the door for them, and through experience navigate their way through their career.

“Though qualifications open the door to preliminary prospects, it is the experience you have gained working on various projects that opens doors to specific and celebrated opportunities.”

In the GCC, companies tend to lean towards paper qualification and being a chartered engineer. Lesley Desport, associate director of infrastructure at Atkins, says this sort of attitude predominately exists in the GCC, rather than the West. “I don’t believe that candidates could be ruled out on the basis of not being chartered in the UK.” She believes that in the West there is a better understanding of experience, rather than a candidate just being chartered. “In the GCC there is a high value of being chartered and I think it is higher than necessary.”

That being said, Desport agrees that it has always been advised to be chartered and could even be beneficial, however she insists that has never been so critical outside this region.

Ultimately, she advices young professionals to get chartered. “Especially if you want to remain in the Middle East, where it is almost an essential to become chartered. Even if you want to progress further in your career, there was no reason for graduates based in the Middle East not to consider it.”

Alex Albani, associate professor of

architecture at American University in Dubai (AUD), takes the discussion further by pointing out that in some countries, like the US, being professionally qualified is not even necessary to become an architect or engineer.

From his experience, in the US, all architects do not necessarily go through academic training. However, he does point out that it takes almost three years more compared to a person who is qualified.

He says: “If you don’t have a qualification, it will take you 15 years of on-the-job training to be eligible for a licensing exam. While if you have a professional qualification (which usually takes around five years), after three years of on-the-job training, you will be eligible to sit for a licensing exam.”

He clarifies that in the UAE, however, you have to have a professional degree and there were no set licensing exams for architects or engineers. “The government has been working on it, and I am looking forward to it being introduced.

Not only will a license set a standard but it will also raise the standard of the building sector.”

Some companies in the GCC focus on qualifications and the others on the number of years of experience

construction business news me January 2016 25

COVER STORY

constantly learning regardless of any training programme.

“At Atkins, engineers are urged to continuously perfect their skills by attending events and making sure they are always training.”

Desport, is also the chair of the Institution of Civil Engineers in Qatar, and makes sure her team runs two evening seminars on a monthly basis called the Professional Development Group to help professionals constantly learn how to better themselves as engineers.

If professionals are not part of any training agreement with their own companies, Desport reveals that there are plenty of other means to get trained including morning courses, evening seminars and so on.

Work experience can enhance degree certifications

“Firms, especially architectural firms, want someone who can land on their feet and make money for the firm” - Dr John Alexander Smith Training the qualified Dr John Alexander Smith, professor of architecture at AUD, observes that most students who graduate from universities have very limited experience. He says: “Firms, especially architectural firms, want someone who can land on their feet and make money for the firm.”

There has always been a dilemma between education and training, the academic professor observes. “In some countries, it is common for students who become full-time employees for up to a year, before they come back to complete their degree. This makes them very employable.”

According to him, a year of work experience before graduating could be very helpful for fresh graduates, even more than an internship. However, internships are a lot more common in this region than a year off to work, which he emphasises, needs to change.

Desport, on the other hand, supports the internship system saying that not only does it help young professionals but also adds value to the company. “If the intern has been valued by the com26 construction business news me January 2016

pany, we would most definitely be interested in bringing them on board.”

She says that internships are enormously beneficial for both parties, as a relationship is established. In Qatar specifically, she observes that internship programmes could be quite competitive.

However, if the company and the student have a prior relationship, it does make an arrangement a lot easier.

Once the students have become fresh graduates and join a firm such as Atkins, they are immediately trained via the inhouse training programmes. Desport discloses that the training programme at Atkins provides training in the discipline of their choosing, be it civil engineering, electrical or any other. It aims to support the graduate as they make their way to becoming chartered. She explains that once the graduates are done with the programme, they would be very close to applying to be chartered engineers.

She does quickly clarify that such inhouse training is not the be-all and endall of learning. In fact she argues that the only way professionals would continue to be any good, would be through

Where do most graduates come from?

The AEC sector has a high rate of expatriates working in it. According to Helen Robinson, head of talent for the Middle East at Atkins, there is a lack of GCC nationals applying to private sector positions.

Most experts agree that though GCC nationals are mostly good candidates for the roles, they tend to choose the public sector over the private.

Robinson discloses that GCC graduates, on the other hand, have had good reviews from employers. “The level of graduates coming out of this region has been pretty good. However, there has been a relatively less of graduates from engineering and architectural discipline because of the lack of AEC courses in the GCC.” According to Desport, Atkins based in this region, tends to employ more graduates from regional universities in Jordan, UAE and Egypt rather than the UK. Bekin imparts that AECOM also only targets regional universities specifically the UAE for employing graduates. “We don’t actively go into other countries looking for graduates. We found that we have been able to meet the needs of the organisation, by looking locally.” Of course that does not mean the company rules out any candidate that has applied from oversees, but locally groomed individuals are highly sought after.

Bekin perceives that there will always

Saiz with his students of Master of Science for Real Estate Development programme

Three reasons to pursue a Masters Director at Massachusetts Institute of Technology (MIT) Center for Real Estate Albert Saiz reveals three key reasons that motivate AEC professionals to opt for a Masters’ degree 1. To obtain the skills, exposure, and to network 2. To have a credential that shows you are at the intellectual level to thrive.

3. To shift either from application-based to managerial positions or to change specialisations and move from one side of the industry to another.

be some universities that will outshine another. However, regardless of rankings or reputation, Bekin claims to prefer receiving graduates who meet the eligibility criteria rather than look at those factors. She says: “GCC graduates have managed to get into AECOM, through entry tests which have been pretty tough.”

She claims that once they are in the company, they have been able to work and progress in their careers. “Thus, I don’t think the education in the UAE or the region is second class to education from another country.”

In contrast to most other countries, the GCC does not focus much on the ranking of universities while recruiting its graduates. Bekin declares that if she had to mention some universities with a good graduate turnout, she would pick the UAE’s American University of Sharjah and AUD, and Lebanon’s American

University of Beirut.

Robinson from Atkins, also says ranking hasn’t been on the criteria. “In the UK where they would be employing from a large number of graduates, ranking would probably be more advantageous. However in the Middle East, it isn’t really important.”

The post-grad There has been a growing demand for highly qualified individuals in the market, especially professionals with a Master’s degree.

Smith says that as the market slows down, investors get a bit picky and start looking for the best. The best then translates into not only someone with experience but also that “extra definition” through a Master’s qualification.

“A Master’s is like an extra qualification, and could sometimes define if you get a job or not. It also depends what kind of

Master’s you choose, if it is a specialisation and if it has demand in the market.

For example, if you have a Master’s in Landscape Design, it is a good one to have because most buildings need landscapes, such as driveways, parking, vegetation, and fountains. Thus a qualification like that could be attractive.”

He argues that acquiring such a specialisation is not tied to just a degree and could be acquired through obtaining a particular skillset through experience.

Bekin agrees that a Master’s degree could open doors that not having one wouldn’t. “However, on the flipside, if you have the right amount of experience and have been exposed to the right kind of projects and network of people, I don’t think not having a Master’s degree would hinder a professional’s growth.”

On a personal level though, Bekin maintains that it is important to acknowledge, that a Master’s could help construction business news me January 2016 27

COVER STORY

Downtown area of Dar Es Salaam, Tanzania.

Image courtesy of Dereje

with the personal development of a person and change their mindsets and the way their brain functions.

Albani says that even though a postgraduate degree may not be a sole requirement it could be very useful to focus on a specific niche. He explains that an individual pursuing a Master’s wishes to develop higher skills in a specific specialisation, get into research and wants to seem more marketable At Atkins, Master’s graduates are often considered for major roles, according to Robinson. The graduates of a Masters’ degree (in some circumstances) have an edge over their competition.

Albani exposes that this edge also allows them to demand for a higher salary, which other experts accept is true.

Evolving role of a university Smith argues that the role of a university is not to train students but to educate them. “It is an important distinction.”

He talks about the increasing pressure that has been thrown on universities to deliver technically savvy individuals. “They want someone who can immediately assume a position in private practice and make a valid contribution to the office, which is impossible to achieve immediately” 28 construction business news me January 2016

The professor urges that in cases like this a year off to work in a professional environment before graduation would truly help a student grasp what needs to be learnt, giving them enough time to get used to the expectations of being an AEC professional.

It would also help the company get to know the professional before considering to get them on-board in the long-term.

Albani states that lately academia has become a lot more hands-on concentrating on the practical. Though as an academic, he wants all future engi-

neers and architects to focus on theory as well. “I believe in having a theoretical background and professionals who have learnt where we were, where we are going, and where we will be.

“People who are not qualified and picked up practical skills without theoretical knowledge lack the in-depth know-how.”

He believes that through education a professional is exposed to a more holistic approach, which could help them come up with better solutions and rightly raise the standard of building here in the GCC.

ANALYSIS

Reversing a culture of waste

Reports suggest that of the approximately 120 million tonnes of waste currently produced in the GCC countries, 55% is from construction and demolition. As Abu Dhabi Sustainability Week gets under way, Construction Business News ME looks at how the GCC and wider Middle East can change its ways

R

esearch has found that more than half of the GCC’s total waste – which stands at 120m tonnes annually – is produced by construction and demolition (C&D). However, that could all be about to change as Tadweer sets out a new roadmap to not only reduce waste in Abu Dhabi, but take the message of waste reduction across the GCC with the Waste Management Master Plan.

The issue isn’t entirely confined to the

30 construction business news me January 2016

GCC; C&D debris represents the largest proportion of waste in the Middle East.

Limited C&D waste management regulations in the region, compared to other countries, have resulted in the accumulation of C&D waste in landfills. Yet experts in waste management say that recycling C&D waste can conserve raw material, energy, and water, as well as reduce the production of greenhouse emissions and other pollutants that can contribute to climate change.

According to Tadweer, C&D waste

recycling can even preserve natural resources and support the local economy through the marketing of recycled C&D material which is much cheaper and has the same quality as the raw material and can be used in infrastructure projects.

The Waste Management Master Plan, being developed by Tadweer for Abu Dhabi, includes studies about the best practices, laws and policies related to waste management and the best cost efficient waste processing solutions. The Plan’s outcome will also propose meth-

GCC Countries’ Waste Hazardous waste Industrial waste

18 20 Municipal waste

7 55

Waste from construction and demolition

ods to reduce commercial and industrial waste and raise awareness about the importance of reducing waste especially that of construction and demolition.

“Construction projects are rapidly increasing in the region with Expo 2020 preparations in Dubai, and the World Cup 2022 to be hosted in Qatar. With these developments, municipalities across the GCC are recognising the need for robust strategies to minimize the negative impact of large amounts of C&D waste,” says H.E Eisa Saif Al Qubaisi, GM of Tadweer.

Speaking ahead of the launch of Abu Dhabi sustainability week later this month, Dr. Salem Al Ka'abi, deputy GM of Tadweer, and head of the EcoWaste 2016 Committee, said: “The Waste Management Master Plan was established to help position Abu Dhabi as a global leader in waste management and sustainable resource policy development.”

“As part of the master plan, despite the growth in C&D waste that increasing construction projects are likely to cause, we are aiming to reduce C&D waste levels. We hope to demonstrate how efficient C&D waste recycling can have a positive impact on the region’s environment, society, and economy during EcoWaste 2016.”

The long and short While the waste caused by building supplies and hazardous materials is one part of the environmental puzzle, waste can

also take on many other forms and affect a business’s bottom line.

The industry average for waste on any individual project, stands at around 2.5% to 5%, however recently, and specifically in the GCC, this has begun to creep as high as 15%, once waste of labour and equipment is factored in.

In terms of doing business, it’s a significant margin to lose considering the ease with which it could be reduced.

Hassan Dajani, who heads business development for Bentley Systems in the region, says: “It is becoming a major problem and it’s down to the lack of communication and lack of collaboration; not realising how the final design may look and feel, and demolishing something only to do it again. This wastes man hours and other resources.”

Such processes are the byproduct of a culture of waste across the GCC; whether that is rooted in the false economies of parts, energy costs, labour, equipment or, simply, all of the above, is yet to be deciphered. What is known is that the culture must be reversed.

And change is happening. In recent months both Dubai and Saudi Arabia – the most active construction markets in the region – introduced PPP laws, which while far from waste regulations will keep a tight handle on budgets, causing a trickle-down effect that is hoped to increase transparency and efficiency in a range of projects.

However they will need management

Tadweer guidelines As part of regulating the sector relating to C&D waste, Tadweer is in the process of issuing the technical guidelines for the management of C&D waste in Abu Dhabi Emirate within the coming months. This guidelines aims to provide: • Proper guidance for best practices in C&D waste management • Contractor’s guide to reduce, reuse and safely dispose of waste • A determination of the roles and responsibilities of collection, transportation, recycling and disposal of C&D waste • Ensure all C&D waste are delivered to the recycling plant, and • The use of recyclable materials and aggregates in infrastructure projects.

tools to execute the change and it is this which takes the waste management debate back full circle to BIM. Dajani comments: “People are realising that technology is here to stay and it can save you money. Especially in PPP projects. You have people with different experiences and interests and they come together to make a profit so if they realise they can do something faster and with a greater profit margin, they should be doing it. construction business news me January 2016 31

ANALYSIS

“I have said this many times before. It isn’t about if you adopt technology tools, but when. If you want to be competitive you have to use technology.”

And it isn’t just the building materials, today even interior materials are under the spotlight and design communities are engaged in the benefits of BIM, and maximizing the efficiency of a project, as well as performance of an asset.

CAPEX/ OPEX The crux of the issue, is that the finished building isn’t considered during construction; only construction is considered during construction.

The effects of this culture of logic are multiple and varied and mirror those of BIM and collaboration software development.

“As you can tell from living in the GCC, projects are becoming larger and more complex. It is very common to collaborate on a project with specific team members across the globe so you can get the best specialists in any discipline and work remotely on these projects.”

32 construction business news me January 2016

“If you are to really manage and reduce your operation cost, especially of a school or hospital or airport, you need to look beyond and into the lifecycle asset management” – Hassan Dajani

However, collaborating badly, causes more problems than it solves and they usually contribute towards the upward trajectory in waste costs.

Dajani says: “BIM is a term, but those who really have control of their project and what they are building understand the entire asset lifecycle information.

Owners may consider it a cost but they are focusing on CAPEX, not OPEX. “If you are building something virtually you can superimpose your design model over what you are actually building by holding the iPad up to the ceiling and then seeing the MEP behind the brickwork. This won’t only save money but it might save lives.

“Technologies like laser scanning and concrete structure allows you to capture what is there from simple photographs and make operational decisions without physically demolishing anything. If you don’t know these things exist you’re left behind” he adds.

For Dajani, the solution is “optioneering”, creating thousands of project drawings via software to means test

the design and project coordination.

“When we talk about the role of technology in [reducing waste], I believe it can help tremendously in completing projects. It allows people on a team to collaborate virtually from anywhere in the world.

It simulates construction to determine the use of any heavy piece of equipment or machinery; it allows project managers to know for sure if they need a certain material or product, or even a piece of machinery in a certain place. The worst case is having too much equipment sitting idle and that is a form of waste,” he adds.

The road ahead The methods by which construction waste can be reduced are limited, but varied. They are also somewhat surprising with a survey by Frost and Sullivan naming Landfill as the least preferred method of waste disposal.

However, one method could be coming into its own over coming years, tackling both C&D waste reduction and also greenhouse gas emissions.

The GCC’s waste-to-energy (WTE) market has been sustaining a 20 to 25% growth rate, since 2012, in light of the region’s intensified efforts to adopt more sustainable, long-term waste management and recycling solutions.

The flourishing WTE sector in GCC is opening up significant opportunities for industry players and infrastructure development is already underway, with WTE projects in the pipeline and set to produce between 300 and 500 megawatts of power by 2020 - approximately 10 times more than the current WTE production estimates.

A diversification into WTE could also help meet regional electricity needs, which are growing 8% YoY. When it comes to reusing materials, one firm has been bringing bright ideas to the table for a number of years.

Speaking on the launch of his firm’s new carpet recycling scheme (see box), Andre Dulka, ME regional director of carpet manufacturer, Desso, said: “According to Dubai Municipality, the emirate produces around 7,000 tonnes of general waste each day – the equivalent of nine Olympic-sized swimming pools – of which, 35% of the total generated waste sent to UAE landfills is considered to be recyclable, there is a clear need for companies as well as individuals to do more to reduce this figure.”

The city’s Al Qusais municipal landfill is predicted to reach full capacity by 2021 and the municipality is preparing to implement a series of new measures designed to address waste management under the 2030 Masterplan.

These include a ‘polluter pays’ weightbased charging system, a waste tracking system and mandatory source segregation; with the collective goal of reducing landfill destined waste by 25% by 2020.

Essentially, if industry is to tackle waste effectively, it needs to look at the entire building cycle rather than isolated elements of the project, or isolated materials. The bottom line is emerging and it says that BIM will be the most effective way to reduce construction waste, by not creating or over-procuring the materials, equipment or labour in the first place.

Dajani adds; “Municipalities in different cities are starting to increase their use

Every Little helps Carpet manufacturer Desso has launched its carpet Take BackTM programme in the region with international commercial law firm, Holman Fenwick Willan, the first client to sign up for the unique recycling initiative.

Under the Take BackTM agreement, Desso removed the firm’s existing 3,500-kilogramme carpet, and sent it to the company’s Refinity® Plant in Holland for recycling. Desso also presented Holman Fenwick Willan with a Take BackTM certificate to guarantee that material is recycled according to its corporate Cradle to Cradle® principles.

The firm chose to refresh its Downtown Dubai-located office flooring using Desso’s patented AirMaster® product, which is able to capture and retain potentially harmful fine dust particles, lowering the concentration in an indoor environment by as much as eight times, compared with smooth flooring solutions, and four times lower than with standard carpet.

“More than 1,430 tonnes of postconsumer carpet was recycled in 2014, an increase of 84% from 2011, and with our first Middle East client getting the ball rolling in this region, we hope to see more companies pursue their environmental awareness agenda and support successful eco responsibility initiatives such as our Take BackTM programme,” said Andre Dulka, Regional Director, Middle East, Africa & India, Desso.

The initiative is part of Desso’s Cradle to Cradle concept, under which the company designs products that can be recycled infinitely and without quality losses, in a technical or biological loop.

of BIM. It isn’t a software, it’s the process of how you do things. It isn’t just about making it pretty. If you are to really manage and reduce your operation cost, especially of a school or hospital or airport, you need to look beyond and into the lifecycle asset management.” construction business news me January 2016 33

ANALYSIS

Partnership programme

Dubai’s new public-private partnership law aims to draw foreign investment and international expertise to the emirate’s infrastructure market.

By Stuart Matthews

T

here’s a new law in town and it has investment in its sights. Where once the development of large-scale infrastructure was solely the purview of government, the door is now open for public-private partnerships (PPP) to push Dubai forward.

The emirate’s new PPP law was passed on 20 September 2015 and entered into force on 19 November. If it can catch the eye of construction consortia it may herald a new era in the

34 construction business news me January 2016

way projects in the emirate are developed, providing new opportunities for contractors agile enough to take advantage of them. The law is a broad piece of legislation and while observers may be keen to see what additional resolutions will come to pass, the message the law sends is clear enough: Dubai is open for business.

“The law allows foreign businesses essentially the opportunity to put a different slant on the construction of infrastructure projects,” says Simon Hobart,

group general manager of the Links Group, which provides a corporate local partner for construction firms.

While Dubai’s development has been rapid by global standards, it has primarily been funded from government coffers. The new law opens the door to alternative forms of funding and procurement and could add greater pace to the market, bringing a wider diversity of projects into play.

“They’ve been doing electricity and water projects for years, with infrastruc-

ture being government funded” says Hobart. “I think what they are looking at now is a different, better and cleaner way of doing it. The introduction of a PPP procurement process not only brings foreign investment in for a project, but also allows them to bring expertise into the market.”

While government agencies may be keen to look at more innovative ways of pricing work via a PPP model, such a financial structure could still form part of a standard tendering process. This could see a mixed tender with the winning bid selected from a conventional contract or a PPP model, pitted head to head. Either way the emphasis will fall on bidders to come up with innovative financing strategies in order to win business.

As there may only be a small number of companies globally that could put together a PPP model for the largest of projects, Dubai could find itself attracting the biggest and best companies from around the globe to come in and build its next wave of infrastructure.

“Larger projects will be where consortia come into their own,” says Hobart.

“That is probably the biggest enticement to companies; they can come into this market and really make their own money from it.”

It’s a model which could herald a shift from what has been a very price conscious development since 2009. With future profit up for grabs, it may no longer be a case of simply being the cheapest tender in the bag. The PPP model may encourage expertise and management to come in and run projects to a higher standard, since they will have a stake in the finished product.

“Let’s not get away from the fact that a PPP model should give a good return to the consortium financially,” says Hobart.

“They’re not doing it for a margin, they’re doing it to make decent money on their investment, so they will have a different financial model to someone who just wants to get the job built quickly.”

A new era for projects While the law may kick start a new style of project development in the emirate, it is not a new idea. The prospect of such legislation emerging has been on the

Dubai Marina

“There may well be some advantage in being an early mover in the field. That is probably quite sensible in many ways, but equally some will say, let’s just see what further details come out and get some of the questions which need to be answered sorted out.”

– Sachin Kerur table for half a dozen years or so, as the government has explored new ways to fund projects.

“Dubai specifically has been looking at alternative forms of procurement for a while and there are obvious reasons for that,” says Tim Armsby, partner and head of energy and infrastructure, Middle East law firm Eversheds. “Dubai has been very successful in growing the city and the economy but most of that has been through traditional design and

build type arrangements. Increasingly - and I suppose this is being driven in part by the global financial crisis and now what seems to be a period of sustained lower oil prices - Dubai is looking for alternative means of finance.”

While there may have been a willingness and a demand for PPP style structures for projects, the absence of a specific law has until now acted as a constraint. Attempts to purchase a project would have fallen under the general procurement law (number 6 of 1997), which, says Armsby, follows the typical approach seen in many similar laws and is primarily aimed at the purchase of goods and services on a short-term basis.

“It’s not aimed at long-term contracts and generally the method of procurement is lowest price wins,” he says. “If you're entering into a 25 year deal with someone, of course price is a consideration, but ultimately you want to be absolutely sure they are technically capable and you’re going to get the best possible service and partner.”

While the regulations held back PPP progress they also acted as a constraint from a market perception perspective.

Without a firm framework in place there has been uncertainty in the market about how projects would be carried out. Awareness that there was a draft law in consideration for some time also raised questions about the willingness to use this form of procurement.

“I think that is one of the biggest benefits of the issuance of the law is that it’s construction business news me January 2016 35

ANALYSIS

now clear to everyone there is full support for PPP projects within government and that should yield a number of projects in the coming years,” says Armsby.

While Armsby believes that the opportunities this will create for contractors in the emirate are significant, there will be challenges ahead.

“If you look at the track record of these types of schemes in the Middle East and the GCC in particular, it has been dominated by projects in the energy sector, particularly power and water projects,” says Armsby. “So what you have at the moment is a large contractor and supply chain geared around independent water and power projects (IWPPs) and you have lenders and equity participants who are interested in taking the long-term stakes in these projects. When you move to another sector - particularly projects which are really more civil work - there might not necessarily be the technical components that you see in power and water projects. You're moving into a different contractor and investor base and I think that 36 construction business news me January 2016

will be the challenge at the moment for these first few projects.”

Regional initiative The solution suggests Armsby is engagement with the developers, lenders, investors and the whole supply chain to make them fully aware of the opportunities and to get the market ready. It’s the kind of outreach the emirate is already seeing through events such as the Dubai Investment Forum, which targeted international investors and saw them briefed by directors from a number of the emirate’s key agencies, including Dubai Electricity and Water Authority (DEWA) and the Dubai Municipality.

“For those contractors and developers who get in early it’s a significant opportunity to diversify their business and gain a track record in types of projects that we will definitely see more of, both in the UAE and the wider GCC,” says Armsby. If the idea of PPP takes hold and the region gets a few successful projects under its belt, contractors who earn their stripes in Dubai may be well

placed to push on to other countries.

“If you look at Kuwait they have struggled with their PPP scheme to date but recently replaced the PPP law to deal with some problems they faced under the old legislation,” says Armsby. “That has led to them tendering a number of projects attracting significant interest. Qatar is looking at a PPP programme, Oman is looking at a PPP programme, and Egypt has relaunched its PPP programme. Potentially there is a significant market both in the UAE and the wider region that contractors who have the experience, or want to diversify, can make the most of. There will be excellent opportunities.”

There is a clear desire for the legislation to also encourage innovation and not just in how the finances are structured. A provision in the legislations allows for unsolicited proposals to be put to the relevant authorities on a speculative basis. Put simply, this means companies with a bright idea can actively seek to have it adopted. While this may lure innovative ideas to the emirate Armsby

Panoramic view of Downtown Dubai

cautions that more details are needed to be clear on exactly how such a proposal may play out.

“The so called unsolicited proposals is an approach we've seen in other PPP laws,” he says. “Generally you see a little bit more detail on how exactly that will play out. There needs to be a balance between encouraging the private sector to come up with ideas, which is obviously a positive, against ensuring that if the government decides to use that approach they are getting cost-effective solutions procured in a transparent manner, while also compensating or providing a price preference to the entity which initiated the idea.”

It’s a process already in action in Kuwait where the concept has led to the government tendering for an integrated solar combined cycle plant.

The result is effectively a standard gas-fired power station but with a solar thermal component included, aimed at making the plant more efficient. Armsby describes it as an example of an innovative solution that has

flowed out of that kind of approach.

“It is encouraging to see they've included that type of provision in the law,” he says.

“They’re not doing it for a margin, they’re doing it to make decent money on their investment, so they will have a different financial model to someone who just wants to get the job built quickly.”

– Simon Hobart

The small print While the legislation has yet to have detail added through resolutions, or be tested in action, the response to the framework has been positive. Observers say the broad nature of the law leaves the options open for plenty of flexibility in where it can be applied and for what kinds of projects. Importantly it has a clear mechanism on the approval process for projects, which will gives both the entities procuring the project and the private sector comfort.

That approval will come through the Department of Finance (DoF) which has pivotal role to play in the administration of any prospective PPP projects.

This responsibility includes financial approval of projects that exceed the AED200m threshold for approval by any particular agency. Projects in excess of AED500m need the seal of approval construction business news me January 2016 37

ANALYSIS

from the Supreme Fiscal Committee.

“In effect the DoF sits at the top but then each government agency has to create its own PPP team to procure and evaluate projects,” explains Armsby.

Armsby suggests that means there will need to be a considerable amount of upfront training and preparatory work before individual government agencies will be in a position to procure projects.

“The exception is the RTA, because they are ready to go,” says Armsby.

“They've got a well publicised pipeline of projects they want to do by PPPs, but other departments will need to either recruit or train people so that they understand fully how PPPs work in order to be able to identify suitable projects and procure them.”

Just how important this will be is demonstrated by how a lack of knowledge has caused a number of schemes around the Middle East to fail, says Armsby. “There hasn't been an appreciation of how these projects work and how to value them compared to traditional procurement.”

“It’s important you've got a team of people who really understand how these work and are able to make decisions, otherwise there’s a likelihood that projects will not be specified correctly.

You could face a situation where the risk allocation isn't appropriate and that either means a tender isn't successful or effectively you're paying more for a project than you really need to because you're forcing contractors to price for risk that best sits with the government.”

The thirst for knowledge is an important part of the new legislation, which emphasises the transfer of skills and experience from the private to public sectors. There is a clear desire to treat projects as an opportunity to train and develop agency employees’ skill sets in the area of project management and operation. As such, the key to winning projects may prove to be the ability to transfer knowledge. With the law in place and in force, many people will simply be asking what happens next.

“The headline is that this is good news,” says Sachin Kerur, partner and head of Middle East Region for Pinsent Masons. “We've probably got a sus38 construction business news me January 2016

Construction site in Dubai, UAE

tained period of budgetary pressure for government ahead so anything that enables the private sector to take part in opportunities that otherwise might have been less forthcoming under these current budget conditions has got to be welcome.

“All areas all of the construction sector ought to be interested because it is broad ranging and it could mean that PPP is seen across a wide variety of infrastructure procurement.”

Kerur says that the fact it’s quite a broad general framework as opposed to a very detailed bit of legislation, means gaps need to be filled through further resolutions. Areas such as where the law intersects with things like the Commercial Companies Law and insolvency laws are all things which need to sit alongside the PPP law. There will also be questions about how company ownership and any potential joint ventures might be structured.

“What now needs to happen is there will be certain resolutions that need to be issued which finesse or promote the detail,” he says. “Now, whether people will await the next stage, such as resolutions or other aligned legislation to come out, or whether they will go forward and bring their ideas to government I'm not sure.

“There may well be some advantage in being an early mover in the field. That is probably quite sensible in many ways,

but equally some will say, let’s just see what further details come out and get some of the questions which need to be answered sorted out.”

Kerur believes that the passing of the law clearly signals to the private sector that the government wants to develop infrastructure in a way that hasn't been done before.

“It sends a really strong message as an enabling piece of legislation,” he says.

“In terms of discipline, commitment, and a signal of sentiment, it’s a very good thing to have.”

Regardless of what laws are in place, for PPP projects to fly they will need to be bankable and rigorously structured, with a heavy dose of transparency. Contractors may ask the same questions as banks and other equity providers because, while it will be in the interest of contractors to have projects in the market, it is the equity providers and the banks who will need to be convinced that each one is created with sufficient rigour and demand. That demand will be key in shaping the first project to be carried out under the new law, whatever it may be. Social infrastructure may prove to be the easiest of target sectors, with high demand for education and healthcare facilities in the emirate. If PPP is put to use alleviating bottle necks in infrastructure development, then there will be plenty of reason to welcome the law’s passing.

PROJECT REVIEW

Crystal Clear

Melkan Gursel Tabanlioglu, partner at award-winning Turkish firm Tabanlioglu Architects, speaks with Construction Business News ME about its upcoming project in Dubai Marina, Crystal Towers, and how culture and sustainability play a major role in design

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ocated between the beach and the vibrant JBR in Dubai Marina, upcoming Crystal Towers designed by Tabanlioglu Architects will offer a 360-degree panoramic view of the city.

Inspired by precious stone, the structure is designed with dissimilar triangles at horizontal and vertical angles forming the façade, resulting in a crystal-like surface intended to reflect the sea.

The 35-floor apartment tower and 30-floor hotel complex of total built up area of 1,696,957 sq.ft and completely framed in a glass skin is developed by Al Fattan Properties.

Melkan Gursel Tabanlioglu, partner at Tabanlioglu Architects, says that Crystal Towers, like other major projects, has a contemporary urban architectural finish with free-form living spaces. The project will present urban facilities such as restaurants, high-end shops, spas, and more located in the lower levels of the two towers.

Construction work on the project began two years after it was announced in 2012, and it is currently in its final stages of construction. Once completed, the project will be operated by Rixos Hotels in mid-2016.

Tabanlioglu says: “Since the crisis in 2008, Dubai has made very smart investments. I truly believe Crystal Towers is one of them.”

The firm takes an international approach to architecture and technology to ensure top-notch quality. According to her, one of the key ways to get ahead as an architectural firm is to be innovative and sustainable.

She explains: “Most projects in markets across the world tends to look the same. If you browse the internet, a

40 construction business news me January 2016

Upcoming Crystal Towers in JBR, Dubai

tower in China will look the same as a tower in the US or UAE.” She aspires to avoid this replication and says that her firm gives a lot of importance to standing out in the crowd.

“The only time we consider a project is when there is something different about it. You can’t replicate similar designs across the world, some essential factors like people and culture are different across regions.”

Tabanlioglu believes that before starting a project anywhere in the world, it is useful to look into the culture. “We need to make sure what we design reflects the people and the country.

“It is smarter to design a project after considering the specification of the local people and materials available.”

As sustainability in the region begins to rise, Tabanlioglu says that to survive in any market not only do you have to believe in sustainability but you have to be able to grow sustainably.

“Energy usage is a problem that is huge all over the world, and we

have limited resources. Today, being environmentally friendly is like being a good person, it is not something special. Just like you have to be a good person, you have to make environment friendly projects.”

The firm has been in the GCC for over a decade, it has an office in Dubai with 25 employees and an office in Doha with 10. Tabanlioglu says that the GCC is very special for the firm.

“It is very different from the rest of the world, unlike London or other western cities, the population is growing every day and there is a lot of demand for projects.

She adds: “Being an architect in this region is very exciting because the limits reach the sky.”

The firm has been recognised several times this year for its innovative and sustainable designs. Three projects across the region were even shortlisted at this year’s Cityscape Awards for Architecture in the Emerging Markets including: Astana Train station, Dakar Congress Centre and Qent Isitinye.

Under the Patronage of Mr. Adnan Mandourah, Secretary General, Jeddah Chamber of Commerce and Industry (JCCI)

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PROJECT REVIEW

Riding the rail Construction Business News ME reviews the production of the much-anticipated Riyadh Metro

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rench company, Alstom, has started the production of trainsets for the upcoming Riyadh Metro in its Katowice plant in Poland.

The contract was awarded to FAST consortium, which Alstom is a part of, two years ago by Arriyadh Development Authority – the executive arm of the High Commission for the Development of Arriyadh. The contract included the design and construction of lines four, five and six of the network.

Dr Yasser Omar, Alstom’s managing director for Saudi Arabia, says: “Riyadh is the most prestigious of many Alstom integrated metro projects including combinations of integrated control centres, signaling, trains, power, tracks and other sub-systems.”

Over the course of two years, the Katowice plant will be manufacturing all 69 of the Metropolis trainsets. The plant also comprises over 1,000 employees, it is one of Alstom’s largest train manufacturing sites in the world. It previously built metros for Amsterdam, Warsaw and Budapest.

The maximum speed of Riyadh Metro will be 80 km/h (only applied in long distance tracks). The driverless train will be 100% motorised and composed of two cars per set and is 36 metres long. “The overall system is designed according to highest international standards,” says Dr Omar. “The movements of the trains are controlled by state of the art signaling systems controlling both the speed and the distance

42 construction business news me January 2016

Metro production

between each train.”

To ensure safety, CCTV is installed in the trains and on the platforms. He explains this will help employees in the control centre to monitor real time incidents and prevent them as soon as possible. “Advanced passenger information systems will deliver real time information to the passengers through screens and loudspeakers on board the trains and on the platforms.”

Alstom will also provide Urbalis, its

Communication Based Train Control (CBTC) signalling solution. The first Alstom CBTC solution was delivered to the Singapore metro in 2003. Since then, Alstom has deployed Urbalis CBTC on 67 metro lines totalling more than 1,600 kilometers and more than 1,800 trains. The MD adds: “More than 25% of all radio CBTC track kilometers in the world operate using Urbalis CBTC.” Working closely with its customers,

Copyright of FAST Consortium

Alstom has gradually enhanced Urbalis CBTC resulting in high standard and solutions for all configurations. This includes; new lines or signalling renovations (brownfield or greenfield); ATO, driverless and unattended train operation systems (GoA2, GoA3, GoA4); pneumatic tyre or steel wheel trains; Alstom trains or other manufacturer trains.

The power supply and Alstom’s energy recovery system, HESOP, along with all its sub systems, have been optimised together to reduce energy consumption.

According to Dr Omar the mega project is being built by three consortia and comes with its own set of challenges.

“For example, in the case of our Fast consortium, building lines 4, 5 and 6 with 71.3 km of track and 31 stations in five years is quite a challenging task.

“In addition, diverting utilities for construction works in the middle of a busy city of 5.8 million people, without residents being affected by any service interruption, is also a challenge.”

In the short-term, a full-size mock-up of the Riyadh Metropolis trainset will be unveiled in Riyadh.

Upcoming Riyadh metro

Alstom’s driverless lines across the world: Line name

Start of Peak capacity in operation Passengers per hour

Line length

Fleet size

S i n g a p o r e N o r t h E as t L i n e

2003

80 000

20 km

25 trains

L au s a n n e m 2

2008

15 000

6 km

15 trains

S i n g a p o r e C i r cl e L i n e

2009

54 000

32 km

46 trains

Shanghai Line 10

2010

80 000

36 km

41 trains

Ta i c h u n g G r e e n l i n e

2017

15 000

18 km

18 trains

H o n g Ko n g S I L ( E )

2017

30 000

7 km

10 trains

S y d n e y N o r t h W e s t R a i l L i n k UTO

2019

80 000

36 km

22 trains

construction business news me January 2016 43

PROJECT REVIEW

Big joy rides

themes and

Upon its inauguration next year, Dubai Parks and Resorts will be the largest integrated theme park destination in the region. Raed Kajoor Al Nuaimi, CEO of Dubai Parks and Resorts, talks to Construction Lorraine Bangera about the challenge of delivering a megaproject

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pread across 25 million sq.ft of land and located close to the new Al Maktoum International Airport in Dubai, Dubai Parks and Resort (DPR) will comprise three theme parks – Motiongate Dubai, Bollywood Parks Dubai, and Legoland Dubai – together with Legoland Water Park. Once completed the projected revenue for the first full year of operation in 2017 is AED2.4 bn, with an aim of generating over 5,000 jobs in the sector directly and indirectly by 2017.

Around 1,000 jobs will be reserved for Emiratis as part of the firm’s Emiratisation efforts.

The parks will feature interactive rides, live shows, concerts and open-air festivals, while the master plan also includes retail space, Riverland Dubai, and hospitality project Lapita Hotel.

Raed Kajoor Al Nuaimi, CEO of DPR, says that the concept was inspired by many theme parks, global institutions and creative landmarks. “Motiongate Dubai and Bollywood Parks Dubai were inspired by global entertainment and two of the world’s most revered film industries: Hollywood and Bollywood.”

Al Nuaimi explains: “There might be numerous theme parks across the globe, but what makes DPR unique is that it was designed specifically to showcase the best from East to West.”

44 construction business news me January 2016

Raed Kajoor Al Nuaimi

Copyright of Dubai Parks and Resorts – Legoland Dubai

Copyright of Dubai Parks and Resorts – Rajmahal Theatre, Bollywood Parks Dubai close up

Copyright of Dubai Parks and Resorts – Lapita Hotel

construction business news me January 2016 45

PROJECT REVIEW

Copyright of Dubai Parks and Resorts – Legoland Dubai

Construction update The project was announced in late 2012 with groundbreaking in early 2014, and construction is scheduled to be completed before the end of the third quarter of 2016.

Al Nuaimi says: “Due to the sheer size of the development we have chosen to partner with multiple contractors, consultants and architects, rather than just one - collaborating with the world’s best and well-known names in construction and entertainment.”

Overall attraction design and construction management is being led by Hill International and Samsung SCT. DPR currently has over 30 contractors on site, with a mix of both international and local developers such as Brookfield Multiplex, Kier, Laing O’Rourke, Besix-Orascom and ARCO. “Building DPR has been a massive and ambitious project– it is the first time in the world that three theme parks, a water park, and a hotel, as well as a retail and dining district are opening together,” he says. “We have required huge amounts of resources and manpower to build and develop this project.”

At the moment the DPR management team is over 200 strong and is supported by over 30 contractors and close to 11,000 workers on site.

Challenges overcome Building this multi-themed entertainment destination on millions of square feet of land in the desert has definitely had its challenges, says Al Nuaimi.

The challenge for this particular project had to do with delays in other global theme park destinations as well as projects in the planning and delivery phases, as industry resources in terms of qualified suppliers and talent are stretched. “We’ve been fortunate, however, to put together a very experienced in-house team and group of suppliers that are capable of delivering quality products and services in line with our programme.”

46 construction business news me January 2016

He adds: “As with any project of this magnitude, whether it be importing hundreds of plant species, recruiting the right talent or employing the latest smart technology we need to ensure that each step is employed with detail and precision.”

The grand opening of DPR has been scheduled for October 2016 and Al Nuaimi is confident the deadline will be achieved, as construction is currently on schedule.

As of the end of September this year, 71% of the individual projects’ infrastructure and 50% of resort wide infrastructure development and construction had been completed. In addition, 63% of the ride engineering and manufacturing, which is being done off site, was complete, with rides starting to arrive on site.

He says: “In October, we announced that our first roller coaster was being installed at Legoland Dubai. While work on our two largest buildings, the DreamWorks building in Motiongate Dubai and the Rajmahal Theatre at Bollywood Parks Dubai, is moving rapidly and are visible to those who drive by our resort.”

Sustainability and safety Once fully functional DPR will feature three theme parks and a water park with over 100 rides and attractions. Motiongate Dubai has partnered with DreamWorks Animation, Lionsgate and Sony Pictures Studios to feature 27 rides and attractions across five themed zones. Bollywood Park Dubai will have 16 rides, Legoland Dubai will include more than 40 rides and finally Legoland Water Park will include 20 slides and attractions, including a half a million gallon wave pool.

With so many rides in the pipeline, Al Nuaimi assures that safety has been a paramount concern. “Throughout our design, manufacturing, and construction phases we are working closely with our partners to ensure every ride component is rigorously tested according to

People

Number of rides pa r k

Mo t io

Leg

nd

te r wa

200

management team

and

Legol

40

100

d

workers on site

Total number of rides

B ol l y w oo

11,000

27

te n ga

ola

20

16

Key dates

Project announced: 2012 H2 Groundbreaking: 2014 H1 Scheduled: 2016 H2 construction business news me January 2016 47

PROJECT REVIEW

Copyright of Dubai Parks and Resorts – Legoland Dubai

the highest international industry standards.”

Once the rides are shipped to Dubai each attraction will then undergo a stringent series of tests both before the park opens and then on a daily basis to ensure safety.

All of the rides will be factory certified by TUV SUD, an international provider of testing and safety certification.

The certification will take place prior to shipping and once again at the end of installation, testing and commissioning.

Al Nuaimi says: “We recognise that by integrating sound environmental, health, and safety management practices by preventing or minimising the environmental impact of our operations; managing and operating our facilities to maximise safety, promote energy efficiency, and protect the environment as well as meeting or exceeding all applicable environmental, health and safety legal requirements, as well as the requirements of ISO 14001 and OHSAS 18001. ” ISO 14001 is the principal management system that helps to control environmental aspects, reduce impacts and ensure legal compliance, while OHSAS 18001 is an Occupation Health and Safety Assessment Series for health and safety management systems.

Leisure and entertainment destination Leisure and entertainment is a very broad category as it includes everything from small family entertainment centres and cinemas to museums and large scale international theme parks.

Capital requirements and risk profiles vary significantly based on the asset class, size and scale of the project, product positioning or experience, location, support infrastructure and the market demand for the attraction.

Al Nuaimi says that leisure and entertainment developments can certainly be profitable if the concept is backed by sound fundamentals such as strong market demand, intelligent use of capital and efficient operations amongst 48 construction business news me January 2016

Copyright of Dubai Parks and Resorts – Motiongate Dubai

others. “The wider economic impact also needs to be given due consideration especially in case of large capital intensive projects such as theme parks; the overall economic impact is much greater than the direct income generated by the project - indirect job creation, demand for ancillary facilities such as hotels, restaurants, retail, airlines, car rental companies and so on.”

DPR has also been designed to primarily serve the regions that are within a seven hour flight time from Dubai, and with the range of attractions is designed to appeal to everyone, especially families with children.

Inspired by the leadership’s vision of positioning Dubai as a recognised global tourist destination and Tourism Vision 2020, DPR aims to capture the significant growth in the tourism sector as well as contribute to it by creating the region’s largest year-round integrated theme park resort.

Al Nuaimi adds: “We seek to pave the way for the next generation specialising in the industry, as well as lead in the development of the theme park sector in the UAE and the Middle East at large.”

TAKE 10

Project

Showdown

Construction Business News ME looks into the top 10 upcoming projects in the Gulf region to watch out for

1

Lusail City One of the most awaited and sought after projects in the region, the upcoming urban city, Lusail City, will accommodate a population of up to 260,000.

The 38 square kilometre development by Lusail Real Estate Development Company (LREDC), located 23 kilometres north of the city centre of Doha, will help diversify Qatar’s economy. Currently under construction, the project is developed by the state-controlled developer Qatari Diar Real Estate Investment Company and Parsons Corporation.

One of its most notable projects with the masterplan includes the Lusail Iconic Stadium, (capacity of 80,000 people) which will host the opening and final matches of the 2022 FIFA World Cup. When completed, Lusail City will feature 19 distinctive districts including the Blue-water lagoon with two marinas, 25,000 residential units housing 175,000 people, 36 schools, a hospital, an underground metro link to new Doha rail network, and two golf courses, among others.

Louvre Abu Dhabi France and UAE came together in 2007 to put forward the first universal museum in the Arab World, Louvre Abu Dhabi. Since then the road has been tough, but this year will be the year, we will welcome a new addition to UAE’s collection of wondrous structures.

Designed by Pritzker Prize-winner architect Jean Nouvel, the museum is set to be located in the heart of Saadiyat Cultural District. Almost two thirds of the museum is covered by a dome with a diametre of 180 metres. Supervised by Tourism Development and Investment Company (TDIC), the construction at the site started in January 2013 under Arabtec’s joint venture with Constructora San Jose SA and Oger

50 construction business news me January 2016

2

Abu Dhabi LLC. The AED2.5bn project has had its fair share of milestones, but it was never a regular project to begin with.

The project needed a temporary platform in the sea (constructed in 2009) after which more than 4,000 steel and 21,000 cubic metres of concrete were driven into the ground to serve just as a base for the main building.

The project is set to complete during this year, and upon completion the high concrete wall built in the sand will be removed to allow seawater to flow in.

The museum is one of the three planned for the cultural district in Saadiyat Island, alongside the Guggenheim Museum and Zayed National Museum.

Once completed, Jeddah’s King Abdulaziz International Airport will have annual passenger capacity of 80 million by 2035. The expansion aims to position the city of Jeddah as an international hub.

The project covers over 150 square kilometres of land with 20 new building facilities.

The development broken into three separate phases started in September 2006, and phase one is currently scheduled for completion in 2016.

The expansion includes airfield hard standing and paved areas, lighting, fuel network systems and storm water drainage network.

4

King Abdul Aziz Airport expansion

3

Situated adjacent to the FIFA 2022 World Cup stadium and Doha’s new metro line in Um Alaffai, Al Rayyan, the 1,750,000 sq.ft Mall of Qatar will host over 400 shops.

Developer UrbaCon Trading and Contracting (UCC) aims to make the $824m project Qatar’s largest shopping and entertainment destinations. The three storey project will span as wide as three football fields with a vaulted glass ceiling, and will open into a four storey central amphitheatre with a massive domed roof. The project has been designed by architects Chapman Taylor and KEO, and will be completed in 2016 H1.

Mall of Qatar

Kingdom Tower

The vision of H.R.H Prince Al Waleed Bin Talal Al Saud, chair of Kingdom Holding Co, of constructing the tallest tower in the world is taking shape as the construction for the tower is currently underway.

Built by the Saudi Bin Laden Group, the Kingdom Tower, is expected to rise to the height of more than one kilometre once completed in 2018. It will consist of offices, a Four Seasons hotel and serviced apartments, residential apartments as well as the world’s tallest observation deck.

Kingdom Tower is the centerpiece and first construction phase of the Kingdom City development, located along the Red Sea on the north side of Jeddah. Encompassing a construction area of 530,000m2, Kingdom Tower is designed by architect Adrian Smith and Gordon Gill Architecture. Dar Al Handasa is the project’s construction supervisor, while E.C. Harris is managing the project.

5

construction business news me January 2016 51

TAKE 10 The 438-hectare site is equidistant between UAE’s main cities, Abu Dhabi and Dubai. With construction beginning in 2015, the site is expected to be completed one year before Dubai Expo 2020 and create 275,000 jobs.

It aims to spatially manifest the theme ‘Connecting Minds, Connecting the Future’, and include a dedicated gated 200-hectare expo area and a surrounding residential, hospitality and logistics zone.

The masterplan will be divided into three distinct zones, each dedicated to sub-themes: Opportunity, Mobility, and Sustainability. The three zones will converge at the central Al Wasl Plaza.

7

Dubai Expo 2020 site

6

Abu Dhabi Airports Midfield Terminal Building

Dubai Metro

Catering to over 30 million passengers annually, the terminal building comprises of a reinforced concrete podium and multi-level basement with 69,000 tonnes of superstructure steelwork that lays out the roof structure over the central space and piers.

With more than 18,000 workers, 42 tower cranes and 35 mobile cranes on site, the 700,000m2 project is said to be completed by 2017. The whole project would use approximately 69,000 tonnes of steel, 680,000m2 of concrete and 500,000m2 of steel and glass cladding.

The MTB is designed to achieve a minimum Two Pearl Rating, following the Urban Planning Council’s Estidama approach towards sustainable design. The

52 construction business news me January 2016

project aims to be environment-friendly through design elements, such as high performance angled glass to reduce heat and increase air-conditioning efficiencies.

It is said to be one of the region’s most architecturally impressive structures, with a central space that could hold three football pitches and a 52 metre ceiling that is taller than the Emirates Palace.

The complex will include approximately 28,000 square metres of retail and food and beverage outlets. These are set around an 8,400 square metres indoor park, another first for the region, which will host Mediterranean plants and features at its centre, and desert landscapes at its edge.

Dubai's 3D printed office

8

Launched in June 2015, the UAE National Innovation Committee aims to demonstrate the use of latest technologies in regular projects by incorporating 3D printing technology in creating an entire building. Once completed, the building is said to be the world’s first fully functional 3D printed building.

The project is a partnership between Dubai and WinSun Global along with architecture and engineering firms Gensler, Thornton Thomasetti, and Syska Hennessy.

The concept of 3D printing, though existing in the market for quite a while, has been quite popular lately. Thought of as the technology of the future, it is said to play a major role in reshaping construction and design sectors and making it more efficient and sustainable. In fact 3D printing technology could reduce the building time by around 50 to 70%, reduce labour costs by 50 to 80%, and save between 30 to 60% of construction waste.

The office will be 2,000 sq.ft in size will be printed layerby-layer using a 20-foot tall 3D printer. The project will be assembled on site in Dubai in just a few weeks.

Even the interior furniture, detailing, and structural components will be built using 3D printing technology, combining a mixture of special reinforced concrete (SRC), glass fiber reinforced gypsum (GRG) and fiber reinforced plastic (FRP).

10

Akoya by Damac

Nakheel Islands

9

Deira Islands, developed in alignment with Dubai Vision 2020, will comprise four man-made islands situated adjacent to Deira district. The 15.3 square kilometre project will include a variety of mixed-used plots for development of beachfront resorts, hotels and residential communities. Some of the key features include 21 kilometres of beaches, an amphitheater that can accommodate 30,000 people, a shopping mall and a night market.

The project is expected to be completed in 2018 ahead of Dubai Expo 2020.

Developer Nakheel Properties will work with Teo A Khing design consultants on the project, while AE7 works on $12.8m infrastructure designs and RSP Architects and Ted Jacob Engineering Group work on $10.9m design and MEP works.

The $6bn community is said to be the most luxurious development in the region, with high-end branded real estate, luxury mansions and villas, serviced living concepts, the (so far still) Trump International Golf Course, a 4.3 million sq.ft private park and entertainmentthemed retail walks.

The 42 million sq.ft project is located off Umm Suqeim Road in Dubai, which is about a 30-minute drive from Downtown Dubai.

The community is said to be on schedule with many projects with the masterplan completing earlier than expected.

Main contractors have reportedly made a notable progress on-site with more than 2,600 villas and 18 apartment buildings at various stages of construction and the first substation – which will provide 75% of power to the development will be completed and handed over by 2019.

construction business news me January 2016 53

COMMENT

Tough time solutions As the GCC goes through a rough patch, Ben Hughes writes how smart contracting could be useful in times of uncertainty

W

ith oil prices depressed, allied with a more uncertain security position across the region, governments have taken a more measured approach to spending, which has typically resulted in spending cuts. Non-essential projects have been deferred and an increasing proportion of fiscal budgets are being diverted to military spend.

Indeed, lower oil prices are likely to result in oil-export related losses of approximately $360bn during this year alone. MEED Projects also forecasts oil prices will remainlow, between $50-70 per barrel until 2020, so this is an issue that will need to be managed for the foreseeable future.

This uncertainty and tightening of budgets inevitably impacts the private sector, not only because public sector awarded contracts have become increasingly scarce, but also as a result of weakened market sentiment which then has a cyclical effect on industry.

This is often experienced first, and most directly, by the construction sector which is either reliant on government spending on major capital and infrastructure projects, or reliant upon the private sector who typically deliver projects during times of stability and prosperity.

The value of projects awarded during Q1 of 2015 equated to a record $172bn.

Kuwait has outperformed its targeted spend, whilst Qatar has remained on target against forecasted spend. Saudi Arabia and the UAE, the region’s two

54 construction business news me January 2016

biggest spenders, have experienced a slowdown in the pace of growth and this is expected to become even more pronounced in 2016.

However, taking the increasingly cautious economic outlook to one side, there is still a healthy pipeline of projects across the region that are considered to be essential and therefore unlikely to be delayed or cancelled.

MEED Projects considers this pipeline to be around $1.8tr in value, with Saudi Arabia being the largest net spender at around $800bn; the UAE following behind with projects in the pipeline of $600bn; Qatar contributes $200bn in projects; and Kuwait follows with c. $175bn in projects. Of this total, almost $1tn is focussed on the construction sector, i.e. buildings, transport and commercial related projects, so there is clearly still a large market for contractors to tap into.

The new PPP law in Dubai, which came into force on 19 October 2015, may also help sustain this level of expenditure as the Dubai government has recognised the benefit of delivering major projects using both private sector cash and expertise. Indeed, this may well be viewed with interest across the GCC as other governments, looking to hedge their expenditure on essential projects, may consider this a viable option to share the financial and operational risk in delivering projects such as education facilities, hospitals, transport projects and power projects. Whilst PPP in the region has not achieved the same level of adoption than in more developed economies, who would bet against the Dubai government in creating an environment that positively encourages partnering between the public and private sectors, and in doing so delivers a range of significant proj-

Ongoing construction in Dubai

ects across the Emirate for many years to come?

However, given there is a reduced amount of expenditure across the construction sector, it is inevitable that there will be increasing competition to secure a share of the market, and this can sometimes translate into behavioural patterns that actually contribute to long-term issues. With less money being spent in the market, contractors tend to reduce their margin during the estimation phase to remain competitive. But if they have a constant cost base, i.e. their staff numbers remain the same, and they retain the same amount of plant, equipment and office accommodation, then as gross margins decline so too does their net cash position as relatively more cash generated may be used to cover fixed overheads.

Such issues might include non-payment of staff, long delays in paying supplier invoices and delayed payments on banking facilities, all of which again lead to cyclical problems that are often difficult to fix.

So how are such issues avoided in the longer term? By adopting a more measured approach to pricing, such as protecting margin, contractors will ensure a more reliable and robust cash position which may help avoid the issues outlined above. But this

is only part of the solution. Ensuring that projects are delivered efficiently is also a key factor in ensuring financial performance. For instance, many contractors across the region speak of having excellent policies and procedures, world-class project controls and integrated ERP systems. However, unless their project staff fully understand the contract and are delivering to that contract, they are managing change efficiently and also balancing project cash flow. At that point, gross and net margins could be reduced to the extent that they become negative which, if replicated across a number of projects, can have a significant impact on a contracting business’ balance sheet.

Having clear, concise and well implemented project controls can help protect against margin erosion.

For instance, understanding contract provisions around variations can go a long way to protecting that margin.

Frequently contractors implement changes without the necessary approvals in place, and this often leads to conflict, and in accounting terms, provisioning a proportion of this at year end. So using recognised practices such as Cost Value Reconciliation may help protect the margin of the project and allow management to make more informed decisions during

the execution of the project.

The contracting environment across the region is diverse, complex and can sometimes be contentious. Whilst international standard project controls and efficient project delivery go a long way, clients themselves also need to share the responsibility in improving the trading conditions for contractors.

A consensus view on variation orders and extension of time claims is a rare thing, but if clients and contractors acted in a more collaborative way using recognised and transparent project controls, such conflicts may be avoided in the future.

Perhaps the current economic conditions may actually be viewed as an opportunity for more efficient and collaborative project delivery, which if adopted across the industry, may lead to a longer term improvement in working practices and a more mature contracting environment, i.e. “survival of the fittest�.

Ben Hughes is a director of the Deloitte Capital Projects team, specialising in enhancing the performance of projects and clients within the construction and real estate industries. With coverage across the GCC and North Africa, he provides practical advice to clients which is focused on tangible savings derived from operational efficiency. construction business news me January 2016 55

Q&A

Test the water

Ideal Standard MENA, provider of total bathroom solutions, has been in the GCC for over two years. Business development director Antonios Mourikis talks about penetrating further into the market through innovation and a green motto

Ideal Standard is a recognised European brand, but it still considered new in the GCC. Could you tell us more about how Ideal Standard aims to grow in this market?

Our company has been around for over 100 years, 34 of those years we have been exporting products from Europe and the US to the GCC. So the market is not new to us. We did, however, only begin operations here two years ago when our shareholders decided to start a company in Dubai.

The company, Ideal Standard MENA, represents our international services here in the GCC. Though we still produce exclusively in Europe, we have all our distribution here. I think the GCC market is very lucrative and has a need for our products. It will take time but establishing ourselves in this market wouldn’t be difficult.

Could you compare the competition in this region with European and American markets?

From my observation, the competition is very aggressive in this part of the world because of the (comparatively) huge demand for suppliers. However, we are in a very good position. Though the competition has been established, everyone believes in our brand and our brand name. We were the first European-American bathroom supplier in these countries and in this part of the world.

What are some of the challenges you face in the market?

The challenge for us specifically is to make Ideal Standard MENA as strong and accomplished as we are in Europe.

In order to be a solid company in this part of the world, we need to build a reputation for many years which we cannot just expect that to happen overnight.

56 construction business news me January 2016

We specialise in such products, not just because it is a trend, but because we believe that by saving water you can ultimately save the planet. Watersaving could also be very cost-effective, particularly when it comes to residential projects. A good example of such a product would be one of innovations that we introduced over a decade ago, we produced regulators in our mixers which could save water consumption up to 50% eventually also reducing overall expenses.

Antonios Mourikis

Other ranges by Ideal Standard MENA

What are some of the latest trends that will be shaping the industry in 2016?

About a year ago, there was a need for green products in the European market.

I think that trend has now become global. Water-saving is a huge trend, globally and especially in the Middle East.

This part of the world, being an arid region, gives a lot more importance to water saving, especially in terms of innovation and technology. Saudi Arabia, in particular, has a big demand for water saving products, followed by the UAE and Qatar. I assume this would be a key trend for the next five years, till creating such products would be an absolute necessity.

What is the driving force behind the need to innovate?

We have always aimed to be different and create products that would ultimately help the customer. Our aim is simply to perform to the best of our ability and we could only do that by innovation. We also believe that we are here to help the planet which is why we refer to ourselves as “water-savers”.

Could you tell us more about your new innovation AquaBlade? How has the regional response been for this product?

The AquaBlade flush is a newly engineered technology that creates a cascading wall of water from the top of the toilet bowl opening. The optimum water flow is highly efficient and with minimal splash. I truly believe that this product will take over washrooms in the future.

Until now, the product has been very well received in Europe. We launched it recently at The Big 5 Show 2015 in the GCC, so we expect the same response from this region in the next couple of years.

The feedback we have gotten from clients has been very positive because of its unique, luxurious, and elegant finish.

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COMMENT

Learning from the bottom up Today, the majority of the world’s population lives in urban areas, most of which have outdated infrastructures and poor resources. As we continue to see a dramatic increase in urbanisation, the creation of sustainable cities is no longer a choice… it has become a necessity. Baharash Bagherian examines the missing link in empowering the next generation of cities

O

ver the past few years, I have sensed a strong spirit of determination among government officials from various cities around the world, all aiming to achieve their vision of a sustainable city. Unfortunately, most will fail at achieving that vision as they rely on a top-down approach to urban planning.

The top-down approach has a minute role in encouraging community involvement or ownership of proposals. The community plays a vital role however the top-down approach fails to recognise this. Cities are built with the needs and demands of communities, and by not involving them any approach would be a waste of resources.

Imagine if we could flip this model, and empower people from the bottom-up. Decentralisation of urban planning could empower local people to collectively play an active role in transforming our cities into vibrant and healthy places. In my opinion, it is the most passive way of achieving sustainable cities.

If cities were to invest in grassroots, people and young businesses with a passion for improving their own communities, they will be nurturing entrepreneurial spirit from the bottom-up.

60 construction business news me January 2016

This inward investment will create more green jobs and will result in a new way of thinking about cities.

A good example of this bottom-up entrepreneurship was the invention of the bicycle sharing programme in 1965. This experiment, by the Dutch social inventor Luud Schimmelpennink, involved him collecting several hundreds of bikes, painting them white and distributing them around the city for people to use freely. No one could have predicted that 50 years after an experiment by one individual, more than 700 cities worldwide would go onto providing a bike-sharing programme.

Imagine if cities were to become living laboratories, promoting a “Do-

It-Yourself” testbed environment for grassroots, all with a common goal of improving the quality of life in the city. These short-term testbeds, such as the invention of the bicycle sharing programme, are sometimes the key to achieving long term global change.

Given that almost 70% of us will be living in cities by 2050, promoting an entrepreneurial culture in the built environment could be the key to creating the next generation of sustainable cities. A decentralisation moving away from macro-scale city planning, towards a collection of localised micro-scale systems, could also be the key to transforming our linear economies into circular economies.

Thus the next generation of cities will be designed by locals for local needs; a decentralised collective innovation.

If neighbourhoods were designed by the same people who actually live in them, I believe we would see a significant shift in priority. For example, more affordable housing, more localisation of infrastructures and renewable resources to meet the demands of their areas. These shifts in priority have one thing in common; they all address the very basic needs to people’s livelihoods, which are critical to human development and social cohesion. These basic needs include a sustainable capacity to acquire continuous access to housing, water, electricity, food, medicine and clothing, all of which must be affordable.

Ultimately fostering a bottom-up collective, entrepreneurship is the most passive way of transforming our cities into more inclusive, liveable and resilient places. Thus empowering the next generation of cities requires a new form of thinking; a decentralised collective innovation.

Baharash Bagherian, designer and founder of Baharash Architecture, believes that great Architecture is more than buildings. In his work, each project is driven by a process of investigation and experimentation.

Some of his recent projects include phase two of Dubai Sustainable City, Panoramic Villa in Saadiyat Island and Water Boulevards in London.

COMMENT

Zone of industrialisation The Government of Afghanistan is bouncing back under the democratically elected, reform-minded President Mohammad Ashraf Ghani Ahmadzai. With bold initiatives to fast-track the pace of industrialisation through Special Economic Zones (SEZs), Malcolm Dias analyses how this spells good news for investors and Middle East’s logistics and construction companies

A

s part of Afghanistan’s economic development plan, its government signed a memorandum of understanding (MoU) with the US-headquartered Chord Group to establish a series of Special Economic Zones (SEZs) within the country.

Since the election of the National Unit Government in September 2014, Afghanistan has implemented a vast array of vital reforms to enable the country to develop full economic independence. These reforms have seen significant changes in the construction, mining, healthcare, banking and the agricultural sectors among others.

Earlier this year, the Afghan government established a SEZ Committee, to review how these tax and labour-concessioned zones could be used to stimulate local employment and attract foreign direct investment.

A recent study and recommendations

by Harakat, a non-profit Afghani organisation, concluded that the establishment of SEZs in Afghanistan would send a signal to investors that the country is committed to supporting private sector development, and could encourage higher levels of foreign investment, in line with the conclusions of the London Conference on Afghanistan held in December 2014.

This eventually led to the establishment of the Afghan Airfield Economic Development Commission (AAEDC), chaired by Mohammed

62 construction business news me January 2016

Herat, third largest city of Afghanistan, with a population of about 450,000.

Daoud Sultanzoy.

Sultanzoy stressed that Afghanistan is a country potentially rich in minerals, agriculture, horticulture, power generation and energy. He emphasised that several factors make Afghanistan the prime destination for investment.

“Afghanistan is the new frontier for trade, commerce and investment. We have a growing population base of 35 million people clamouring for consumer goods, an educated workforce, improved infrastructure with the recent building of thousands of miles of highways in addition to instituting the legal framework for secure banking and financial transaction, property ownership laws and other legislative requirements.”

Sultanzoy lauded the Afghan Government’s decision to create a series of ‘Special Economic Zones’ (SEZs) that allows the Commission to create a managed and optimised environment in Afghanistan to attract foreign investors into key sectors of the country’s economy. Investment in these sectors in turn will transform other industries, creating direct and indirect

local employment. It also simplifies the issuance of visas, customs and other processes required to bring specialist labour and equipment required for business operation within the SEZ facilities.

Allaying fears on the security situation in Afghanistan, Sultanzoy said: “Afghanistan is full of opportunities and there is a lot of promise and potential for investors coming into the country.

We now have the legislative and legal framework and physical infrastructure in place to attract businesses. We are ready and willing to do business with us.”

Sultanzoy also commented that the peace dividend derived as a result of pursuing economic reforms and taking new initiatives would benefit the region.

“To date, we have received encouraging responses and mounting interest from companies and governments from the Unites States of America, China, Russia, the GCC nations, European and Far Eastern countries and from the hinterland including Iran, the CIS countries and some African countries— truly an eclectic mix.”

The signing of the memorandum of understanding between the Chord Group and the Government of Afghanistan represents an important step in realising the new economic vision for the country.

Jason Blick, chair of the Chord Group said: “Logistics, transportation, construction and supply chain companies will be the biggest beneficiaries of opportunities coming out of Afghanistan. Geographically, the shared borders and the strong agricultural base, along with the opportunity to modernise its national infrastructure, are good foundations for an effective SEZ that can have a longterm impact on a country.”

Sultanzoy observed: “In order for Afghanistan to create a true free market for business and enterprise that provides a solid regulatory framework we sought out for industry leaders that can help guide us toward creating effective implementation plans. I am pleased to report the recent relationship developed with The Chord Group to add value to AAEDC as we further our Invest Afghanistan campaign.”

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Machinery

Tech-talk

Ramdas Rao, managing director at Acore Global, talks about how innovation in machinery drives business

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I am tired and bored of people who use the same technology,” Ramdas Rao, MD of Acore Global reveals. Acore is a supplier of lifting and heavy equipments from reputed brands.

In his opinion, the regional and international industry has grown leaps and bounds when it comes to engineering. There have been so many advancements in the way engineers utilise technology in the last decade but Rao observes that very few companies have incorporated this in their heavy equipment. “There needs to be a change, and we as a company are bringing that change through our products.”

He urges that every product the Acore team deals with brings something unique into the market. “By doing so the firm hopes to contribute to the next generation and move ahead in terms of technology.”

The technology does exist in the market, but there is still a visible gap. Rao says that it is possibly because people haven’t been familiarised with any of the new technology. Change stems from knowledge not ignorance. “To upgrade the market, our first step should be educating companies and providing hands-on training, especially when it comes to heavy machinery and equipment.”

Rao considers change to be the only thing that is constant. “But now we have to convert change into a mindset for people.”

He observes that as the economic situation in the market gradually declines, producers have been creating cheaper construction vehicles, and contractors have been procuring cheaper materials.

“What people don’t understand is incorporating technology is actually cost-effective, and could reduce your cost by 20 to 30%.”

New ranges in the market Rao says that every new product launched including the Leonardo HD, Magni’s RTH 5.23S, and PIXY 45T, has attracted buyers because they have never seen similar designs before.

“Unfortunately,” he admits, “the biggest challenge to overcome has been a common mindset buyers have of an innovative product assumed to be expensive.”

Rao assures that despite the technological advancements, manufacturers have priced these products very reasonably for any asset procuring company.

Each of the products launched were showcased at last year’s Big 5 Show at the Dubai World Trade Centre.

LEONARDO HD

PIXY 45T

Magni’s RTH 5.23S

This low level platform, Leonardo Heavy-Duty, is designed for harsh environments and features active pothole protection for an increased ground clearance, preferred in the contracting environment.

Tailor-made to the operator’s and contractor’s needs in the building industry, the range of platforms eliminates the need for scaffolding, scissor lifts and normal push-around units. It replaces ladders and scaffolding towers.

This mini loader combines the advantages of the rigid frame with the articulated chassis. Supplied with four-wheel steering and oscillating rear axle it allows tight turning radius but very high levels of stability and security.

The hydrostatic servo-assisted steering system, the articulated frame together with four steering wheels, each powered by an independent wheel motor, allows the operator, despite the size and the weight of the machine, to maintain the keep the driving of the machine always under control in a simple and safe way, thanks to the absolute directional stability of the vehicle.

Launched at The Big 5 Show Dubai in November 2015, the tele handler has a maximum lifting capacity of 4999 kg with maximum lifting height of 22.75m and a 360-degree rotation.

Manufactured by Magni, the product is one of the highest reaching machinery in the world with the highest capacity.

64 construction business news me January 2016

EDITOR'S PICK

Disruptively advanced

Autodesk University Extension Dubai threw a special focus on design and how it helps shape the world. Experts from the firm highlight how technology could help propel us forward

G

lobal software firm, Autodesk, organised its fourth edition to Autodesk University Extension (Aux) Dubai at the Dubai World Trade Centre on 16 December 2015. Through the oneday interactive conference and exhibition, the firm presented a number of advances toward the future of making things and new technologies that would help attendees navigate and thrive in this shifting landscape.

This year under the theme, ‘Insight, Innovation, Inspiration’, AUx had more than 800 regional design and engineering professionals coming together for a hands-on experience exploring advanced technologies.

Louay Dahmash, head of Autodesk Middle East, said: “Technologies like the Internet of Things (IoT), augmented and virtual reality and robotics will change the way engineers and designers work. Places and things are more connected, intelligent and dynamic than ever before.

Our event is timely and strategic as there are countless ambitious and futuristic projects underway across the Middle East.”

Its flagship Autodesk University in Las Vegas attracts over 30,000 attendees, while it also has functioning universities in Germany and Russia, and other extensions taking place all over the world.

The event covered a vast range, from technologies that aid the AEC industry to useful information for manufacturers, media and entertainment professionals.

Naji Atallah, head of AEC and manufacturing Middle East and Turkey at Autodesk, observes that though the event in Dubai had a lot

Keynote speech at AUx Dubai 2015

Naji Atallah

of scope, there is sharper focus on the AEC industry. “The overall focus in this region itself is the AEC industry, thus majority of the attendees come from the same industry.”

Atallah says that AUx give a glimpse of what the future holds.

The event showcased latest advancements and technologies that could one day be functional in society. It’s sort of a giant crystal ball but for being backed by solid facts and science.

Atallah terms these kind of hightech technologies displayed as “disruptive”. He says: “By disruptive I mean these technologies have the capacity to change the status quo.

These technologies can change the way an entire society functions and affects an entire spectrum rather than just one sector.”

Observing the upcoming trends in 2016, Atallah says that there is definitely more technology being used on the field in construction.

“Traditionally engineering data or engineering technology, used to be restricted to the office environment, which is ironic because most of the spending happens on the construction site itself. By using technology for onsite work, companies would be saving on a huge expenditure. So we promote the use of technology onsite through cloud data and the use of social applications.”

AUx Dubai 2015 also served as a forum for design and engineering professionals to upgrade and validate their skills by obtaining Autodesk Certifications at the event, as well as connecting with peers and experts.

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