OCTOBER 2016
THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS
The launch of more affordable housing in Dubai is a sign of a maturing market. But is it really affordable? We design.. we construct.. we build.. Kingdom of Saudi Arabia, PO Box 65697 Riyadh 11566 Tel: +966 11 293 1193 Fax: +966 11 293 1170 www.albawani.net
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Editor’s note News Contracts Market Report In Person
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How Kuwait-based SSH made a breakthrough in Dubai
36 Cover Story
A Tale of Two Cities: More affordable housing is a sign of a maturing property market in Dubai
46 Take 10
Dubai Mega Projects
32 14
construction business news me October 2016 3
GETTING CLOSER TO THE TOP...
Getting closer to the top of the tallest mountain in the UAE will soon be a lot easier, thanks to the fleet of Volvo construction equipment used in the building of the road to the Jebel Jais mountain. When it’s finished, the route will run from Ras Al-Khaimah right to the 1,910 metre summit. The road has already become a popular destination for motoring enthusiasts, who like to show off what their machines can do. But when the road runs out, that’s where the Volvo operators show off their machines. And it’s impressive to see what they VIDEO http://goo.gl/FPsU43
can do. If you want to get closer to the action, scan the code and watch the video. Building Tomorrow.
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Accelo and the versatile medium-duty Atego to the strong and rugged heavy-duty models Actros and Zetros, Mercedes-Benz offers the best product solution for a broad spectrum of applications. Mercedes-Benz Trucks combine high-quality, premium products with a superior level of customer services.
Jordan, T. Gargour & Fils Co. (+962) 6 416 2410, www.Jordan.Trucks.MercedesBenzMENA.com Kuwait, Abdul Rahman Albisher & Zaid Alkazemi Co. (+965) 1 833 111, www.Kuwait.Trucks.MercedesBenzMENA.com Lebanon, T. Gargour & Fils SAL (+961) 1 255 366, www.Lebanon.Trucks.MercedesBenzMENA.com Morocco, Auto Nejma Maroc S.A. (+212) 522 65 09 90, www.Morocco.Trucks.MercedesBenzMENA.com
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Oman, Zawawi Trading Company LLC (+968) 2 465 9200, www.Oman.Trucks.MercedesBenzMENA.com Pakistan, Shahnawaz Pvt. Ltd. (+92) 2 135 8758 52, www.Pakistan.Trucks.MercedesBenzMENA.com Qatar, Nasser Bin Khaled & Sons Automobiles (+974) 4 462 4444, www.Qatar.Trucks.MercedesBenzMENA.com Saudi Arabia, Juffali Industrial Products Company (JIPCO) (+966) 2 682 2000, www.KSA.Trucks.MercedesBenzMENA.com
Tunisia, Société Le Moteur SA (+216) 71 205 502, www.Tunisia.Trucks.MercedesBenzMENA.com UAE – Dubai, Gargash Enterprises LLC (+971) 4 347 6777, www.Dubai.Trucks.MercedesBenzMENA.com UAE – Abu Dhabi, Emirates Motor Company (EMC) (+971) 2 656 7400, www.AbuDhabi.Trucks.MercedesBenzMENA.com Yemen, United Engineering & Automobile Co. Ltd. (+967) 1 330 080, www.Yemen.Trucks.MercedesBenzMENA.com
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54 Legal Viewpoint
New Firefighting Code Requirements: Who bears the Risk?
58 On Site
Abu Dhabi’s Al Maryah Central mall
64 66 68 70
Supplier News Event Preview Save the Date Editor’s Pick
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10 construction business news me October 2016
Kuwait
Qatar
editor’s note
A Tale of Two Cities Cityscape Global in Dubai is traditionally accompanied by a flurry of announcements from big name developers keen to show off their high end projects at the show - and this year was no exception. All the usual suspects including Dubai holding, Emaar, Nakheel and DAMAC were out in force with giant booths displaying models of glitzy developments in minute detail. The star of this year’s show was undoubtedly the $20bn Jumeirah Central project. Occupying 436 hectares in a prime central Dubai location along Sheikh Zayed Road opposite Mall of the Emirates, news of this ‘city within a city’ will have been music to the ears of the construction industry. This is the side of Dubai we’ve become accustomed to over the years, projects conceived and delivered on a scale rarely seen in other parts of the world. But the shoots of a new market have begun to
12 construction business news me October 2016
emerge as the Dubai economy matures and more and more immigrants put down roots for the long term. Affordable housing has become a hot topic in the real estate sector, to the point where it’s almost become fashionable for developers to tack the label onto everything and anything. Just as companies rarely miss the chance to trumpet their activities as sustainable (when often they are anything but), it seems to have become a ubiquitous part of a developer’s public relations drive to claim they are doing their bit for the affordable housing segment. But the truth is that many of these so called affordable properties remain well beyond the purchasing power of the average Dubai buyer and it may require more government intervention to incentivise development of a stock of affordable housing worthy of the name.
Jason o'Connell Editor
Porto Arabia Towers Doha, Qatar
Mall of Qatar Doha, Qatar
Viva Bahriya Towers Doha, Qatar
Qatar National Museum Doha, Qatar
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Dubai unveils $20bn Jumeirah Central Jumeirah Central
Mega project will be home to 35,000 residents and 7,200 hotel rooms
D
ubai has unveiled one of its most ambitious mega projects to date, a $20bn urban mixeduse district at the heart of the city alongside Sheikh Zayed Road opposite Mall of the Emirates. Jumeirah Central will comprise 47 million sq ft of gross floor area and be home to 35,000 residents. The all-season city district will have nine million sq ft of retail space including three malls, 4.5 sq ft of outdoor shopping space and more than 44,000 car parking spaces. A unique tourism destination, Jumeriah Central will offer 7,200 hotel rooms, the largest number of hotel rooms centred in one district. The project will include a multi-modal transport network, including two existing metro stations and aerial gondolas. Over half of the area will be open space with 1 million sq ft of climatecontrolled arcades for all-season lifestyle and a comfortable pedestrian experi-
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ence. It will be connected by a comprehensive cycling network that spans over 33 parks and open spaces. Overseen by Dubai Holding, Jumeirah Central is a product of the collaborative work of over 19 government and private agencies, international experts and consultants. At the launch His Highness Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, said: “As our vision for future cities evolves, Dubai will continue to set the benchmark for city development across the globe. “Jumeriah Central is a clear milestone in our journey towards building the city of the future and the creation of engaged and happy communities. We will not stop investing in our economy, and these projects are tools to expedite that journey of growth. We are confident in the strength of our economy and are optimistic for the future of our nation.
To that end, our vision will continuously evolve and expand.” The range of facilities include schools, offices, parks, shopping centres, smart police services and comprehensive community amenities. H.E. Mohammed Abdullah Al Gergawi, Chairman of Dubai Holding, said: “Jumeirah Central is a result of extensive research into future urban development and the creation of more cohesive societies. “It is a clear demonstration of our leadership’s vision, aiming to further Dubai’s global position as an attractive destination for residents and tourists alike. The uniqueness of this project will not only be a model for advanced urban development, but will also play a key role in enhancing the quality of life and in shaping future generations. “All project plans and designs have been endorsed by government authorities in Dubai and we expect to start development in the coming months”.
Mott MacDonald supervises infra works in Bahrain Manama, Bahrain
Mott MacDonald is supervising construction of major infrastructure works on Bahrain’s Al Madina Al Shamaliya Islands 10, 11 and 12 on behalf of the country’s Ministry of Housing. The scope of the works includes site grading, highways, storm water drainage, electrical, potable water, sewage and irrigation networks, telecommunication ducting and roadside landscaping. Two vehicular bridges connecting Islands 9 and 10 will also be built, as well as one vehicular bridge and one pedestrian bridge connecting Islands 11 and 12. Simon Crossdale, Mott MacDonald’s project manager, said: “This commission builds on our existing excellent relationship with the Ministry of Housing. We also have teams established and working on other major projects in the country, including the Bahrain Affordable Housing public-private partnership project at Al Luwzi and Al Madina Al Shamaliya Islands 13 and 14 (East) and the Al Madina Al Shamaliya Island 14 (West) housing packages supervision.” Mott MacDonald will supervise the infrastructure and utilities contractor, as well as the bridges contractor, during both the construction and defects liability periods.
Nakheel lines up six consultants for $2bn project
Dubai master developer Nakheel is drawing on the talent and expertise of home-grown engineering and architectural consultants to help deliver its new AED7.5bn ($2.04bn) Jebel Ali Gardens community. Nakheel has tasked six Dubaibased, Emirati-led companies with overseeing the design and construction supervision of the sprawling development with a total of 42 towers that will house 40,000 people in nearly 10,000 apartments. The appointed consultants are MEECON (Middle East Engineering Consultants, Golden Square Engineering, Eng. Adnan Saffarini Office, Arif & Bintoak Consulting Architects & Engineers, Design Center Architects & Engineers Consultants and Bel-Yoahah Architectural &
Engineering Consultants. A construction tender will be released in Q1 2017, with anticipated completion in Q1 2020, Nakheel said in a statement. Jebel Ali Gardens is one of a growing number of developments in Nakheel’s residential leasing portfolio which aims to double the number of existing units for lease to nearly 36,000. The development is set on a 5.5 million sq ft site – of which around 20 percent will be communal green space – with a built-up area of 19 million sq ft. Forty-two buildings, ranging from 18 to 29 floors, will be grouped into 12 blocks, each featuring a gym with panoramic views over the landscaped grounds. There will also be ground-floor retail space in each building.
UDC mulls new link road to Pearl Qatar United Development Company (UDC) is considering building a new road to connect man-made island, The Pearl, Qatar with the rest of Doha in bid to ease traffic congestion. The developer has launched an engineering study for the mainland link in co-ordination with the Ministry of
Transport and Communications and has already hired consultants to study feasibility of the project. The number of residents and visitors entering the Island on a daily basis has grown to the point that there are now an estimated 30,000 vehicles using a single connection, a number that will
continue to climb as new properties are launched, UDC said in a statement. Contributing to the traffic congestion is the ongoing Lusail Expressway and metro infrastructure works, it added. The existing highway connecting The Pearl-Qatar has four lanes running in each direction.
construction business news me October 2016 15
NEWS
Italian construction giants target Middle East with new JV
Two of Italy’s leading construction industry names have joined forces and formed a UAE headquartered joint venture. Operating out of Abu Dhabi’s Masdar City, Cimolai Rimond Middle East will leverage decades of proven expertise across the complete architectural, engineering and construction eco-system. The partners offer complete turnkey construction based on the latest advances in integrated project delivery solutions using Building Information Modelling (BIM) technology. “Cimolai Rimond Middle East’s rich vein of expertise will help clients capture more value from every phase of their work by mitigating risks, providing consistency and getting things built and managed,” said Robert Di Franco, Country Manager and Projects Director, Cimolai Rimond Middle East. “It will transform fragmented, traditional project management processes which have been yielding outcomes much below expectations, to a collaborative and efficiency optimised IPD process with market-leading BIM technology tools delivering high-outcome results and putting tight budgetary control back in the driving seat.” Cimolai and Rimond are well attuned
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to the Middle East. Cimolai, a mega structures steel manufacturer, supplier, engineering and construction giant, was involved in the delivery of Doha’s landmark Aspire Tower and the giant maintenance hangar at Hamad International Airport. Meanwhile, Rimond, which previously operated an office independently in the UAE, was the construction contractor for the showpiece, Foster+Partners designed, UAE Pavilion for Expo Milano 2015. Rimond applied an integrated design process with a custom BIM strategy right from tender stage for the pavilion, which allowed the work to be completed without delays, extra cost or rework. The company has since handled the complete dismantling of the pavilion and the logistics behind its relocation to Masdar City where it will become the clean energy pioneer’s visitor centre. Cimolai Rimond Middle East, which retains some of Europe’s most acknowledged, next generation building pioneers to drive its R&D and knowledge-sharing programmes, is looking to also assist with educating regional professionals on the latest building technique breakthroughs.
Bluewaters Island bridges to be completed by year end Construction work on the Bluewaters Island access bridges has reached 85 percent and will be completed by the end of the year, Dubai’s Roads and Transport Authority (RTA) announced. The project, which is being undertaken by the RTA in conjunction with Meraas Holding Group at a cost of AED 475mn ($130mn), consists of a main bridge of two lanes in each direction stretching 1,400 meters in length and 25 meters in width. A further two lanes are designated for the planned Automated Personal Rapid Transit System to ease the mobility of visitors to and from Nakheel Harbour & Tower metro station on Sheikh Zayed Road, said Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors of the RTA. Construction work also includes road connections, lighting, bridges and other infrastructure works such as the shifting of impacted utility lines, as well as the construction of new ones for power, water, irrigation, sewage, and telecommunications among others, added Al Tayer. The island – set to become home to the world’s largest Ferris wheel (Dubai Eye) – will host retail, residential, hospitality and entertainment zones and is anticipated to attract more than three million visitors per year. A footbridge and cable car will link the island with the waterfront of JBR.
Six Construct completes Fujairah tanker jetty Six Construct has completed construction of an oil tanker jetty at the Port of Fujairah in the UAE. The subsidiary of Belgian construction company Besix Group was responsible for designing and building the jetty at the UAE’s only multi-purpose port on the Eastern seaboard. The terminal will open a new era in the Gulf of Oman as the first on the Indian Ocean Coast of the Arabian Peninsula capable of receiving Very Large Crude Carriers (VLCC), the world’s largest tanker vessels. Six Construct carried out civil works and installation of the maritime structures, while the topside work was completed by the Singaporean Rotary. Pierre Sironval, the managing director
of Six Construct, said: “Working in marine environment is a challenge in itself, especially when driving 65m piles in deep water (26m). “Pile driving methods instead of pile drilling methods were adopted at the early stage of the works, and precast elements have been designed in accordance with the lifting constraints of the project. We also installed a concrete line which connected to the breakwater to minimise the offshore in-situ concrete,” he added.
UDC awards piling contract for Pearl Qatar project United Development Company (UDC) has awarded Navayuga Engineering Company a contract to carry out piling works at Al Mutahidah Towers in Viva Bahriya at The Pearl-Qatar. The contract will see the execution of approximately 917 piles as well as the excavation and backfilling works in preparation for the next construction phase. Piling works are expected to be completed in 150 days ending in January 2017 after which the construction of the main building will begin, UDC said in a statement. Comprising approximately of 450 apartments from studios to penthouses in the precinct of Viva Bahriya at The Pearl-Qatar, the project is expected to be completed in the fourth quarter of 2019.
construction business news me October 2016 17
NEWS
Bruce Shaw to rebrand as Linesight
Alef Residences
International construction consultancy firm, Bruce Shaw, has changed its name to Linesight. Bruce Shaw International has operated in the Middle East for eight years and has regional offices in the United Arab Emirates (UAE), Saudi Arabia and Bahrain. The company is working on projects such as the Alef Residence, on Dubai’s Palm Jumeirah Island, King Abdullah University, in Saudi Arabia and Abu Dhabi International Airport. “This is an exciting time for the company as we evolve and move purposefully to become a firm more focused on global expansion into markets like the Middle East and North Africa, providing market
specific expertise designed to serve the needs of an ever evolving client base,” said Niall Greene, Managing Director, Middle East, Linesight. “We are – and will continue to be – a business built on the foundations of partnership building, resourcefulness, integrity and a dedicated client focus. However, as we move forward through 2016 we will bring a greater service offering to our current clients in the provision of best value and high quality consultancy and leverage our assets for future clients alike.” Linesight now operates in over 40 markets worldwide in multiple sectors including data centers, life sciences, com-
mercial, high tech industrial, hospitality, healthcare, education, residential and retail. The firm’s rebrand allows its global assets and projects to be consolidated under a single brand. In the Middle East, Linesight will continue its cost management consultancy contract for Al Sharq Investment Group’s Alef Residences project – a project that includes a 5-star hotel, a landscaped garden and a 475-metre stretch of beachfront. Linesight’s work has involved the detailed preparation of all cost estimates throughout each stage of the design process as well as the procurement of all contractors for the site works.
Secretariat International opens first Middle East office US-based consultant Secretariat is expanding its footprint in the Middle East with the opening of its first office in Dubai. Mike Saulsbury, one of its most senior executives, will lead a team that will provide construction consulting and dispute services.
18 construction business news me October 2016
Don Harvey, managing director: “We perform substantial work in the Middle East and Secretariat’s presence will further compliment the service to our clients in the region. “Mike is a seasoned testifying expert that has worked on many world-class projects and is recognised as a leading
expert in his field.” Secretariat International offers scheduling, damages, project management and dispute resolution services to public and private sector clients. Its other offices are located in Atlanta, Los Angeles, New York, Singapore and Washington DC.
NEWS
Ritchie Bros buys IronPlanet for $760mn
Industrial auctioneer and construction machinery distributor Ritchie Bros. has agreed a $760mn takeover of IronPlanet, an online marketplace for used heavy equipment. Ritchie Bros. said the acquisition complements its primarily end-user customer base, as it focuses largely on the needs of corporate accounts, equipment manufacturers, dealers and government entities in equipment disposition solutions. IronPlanet conducts its sales primar-
ily through online-only platforms, with weekly online auctions and in other equipment marketplaces. The company sold approximately $787mn worth of merchandise in 2015 and has achieved a 25.2% compounded growth rate in assets sold from 2013 through 2015. The momentum has continued this year with a 41% increase in merchandise sales during the first half of 2016 compared to the same period in 2015. “This transformative transaction is the
logical next step for Ritchie Bros., building on our multi-channel platform, global reach and long-standing customer relationships,” said Ravi Saligram, Chief Executive Officer of Ritchie Bros. “Together with IronPlanet, we will create a combined company of trusted brands with the ability to provide customers around the world with a greater number of choices and platforms to sell, buy and list equipment when, where and how they want – whether onsite or online.”
Christian Ulbrich replaces retiring Colin Dyer as CEO of JLL Real estate investment and advisory firm JLL has announced Christian Ulbrich will replace Colin Dyer as Chief Executive Officer from October 1. Dyer led the company since 2004, overseeing a fivefold growth in revenue to $6bn – through organic growth, over 80 strategic acquisitions across the globe, and the addition of more than 100 of-
fices and 30 new countries to its geographic footprint. He will continue to guide the company’s data, information and analytics priorities until he retires from JLL at the end of this year, remaining on the Board and serving as an adviser through 2017, JLL said in a statement. “Working closely with Christian since he joined JLL,
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I know first-hand his deep understanding of global real estate dynamics and ability to lead across wide and diverse geographies,” said Dyer. “With his guidance and our strong management team, JLL will continue to grow and prosper.” Ulbrich will report to the Board of Directors, on
which he serves as an executive member, and he will also chair the company’s Global Executive Board on which he has served for eight years.
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NEWS
Dubai sees world record continuous concrete pour
Gulf Asia Contracting (GAC) has set a new world record in Dubai for the longest ever continuous concrete pour. The feat was achieved on September 9 for the AED 600mn ($163mn) GEEPAS Tower in Arjan, Al Barsha owned by Western International Group. Just under 20,000 cubic meters of concrete was poured over a continuous period of 42 hours with 600 plus workers working in multiple shifts round-the-clock. Unibeton Ready Mix engaged over
than 300 transit mixers making more than 2,500 trips to deliver the concrete from more three plants. The concrete pouring was carried out by massive installations of 14 concrete pumps on site with an additional 5 pumps on stand-by. More than 3,000 tonnes of steel has been used and 150,000 man hours have been put into constructing the raft of the building. Dr. Ravi Pillai, chairman of RP Group, parent company of GAC
said: “This is an impressive feat by GAC which highlights our proven strengths in undertaking complex projects, which demand seamless operational efficiency and top-notch construction expertise. With a built-up area of 1.5 million sq.ft. GEEPAS Tower will have 684 residential units, a fully equipped gymnasium, health club, swimming pool and 730 space car park. The project is scheduled for completion in March 2018.
Emaar unveils 290 metre property at JBR Emaar Hospitality has unveiled plans to build a spectacular 290 metre hotel at Jumeirah Beach Residence (JBR) with a shimmering façade and a distinctive ‘hole’ in the middle. The Address Jumeirah Resort + Spa will function as two towers with separate cores connected at the base and at the top. One tower is dedicated to a 182 room hotel and serviced residences and the other tower will contain residential apartments. The 20,000 m2 development will
22 construction business news me October 2016
be set at the end of JBR and Dubai Marina overlooking the new Bluewaters Island which is currently under construction. Attractions include a rooftop infinity pool, 100 metres of beach frontage and exclusive F&B concepts including a lounge at the highest level. The Address Hotels + Resorts has four operational hotels and two serviced residences in Dubai with five other hotels and six serviced residences currently being developed in the UAE.
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Appointments
Renault Trucks appoints new regional president Renault Trucks has appointed Gregoire Blaise as President for Greater Middle East, assuming responsibility for the brand from Lars-Erik Forsbergh who moves to Singapore to head the Volvo Trucks operations in South East Asia. The 46-year-old was previously General Manager and VP of China for Sunwin Bus, a Volvo Group and SAIC joint venture, and has been working at Renault Trucks since 1999. He is responsible for all Renault Trucks operations for both North and South markets in the greater Middle East region, including Egypt, Jordan, Lebanon, Syria, Iraq, Kuwait, Iran,
Afghanistan, Pakistan, Saudi Arabia, Bahrain, Qatar, UAE, Oman, Yemen, Sudan, South Sudan, Ethiopia, Eritrea, Djibouti and Somalia.
“I am very proud to assume this new role at Renault Trucks,” said Blaise. “The Greater Middle East region is very important for us and this has been demonstrated by the significant investments we’ve made in recent years.” Blaise successively held the positions of Managing Director for Renault Trucks Dealer Subsidiaries Holding for Strasbourg (2006-2010) and Marseille (2010-2012). After completing a year as Key Account Manager for Volvo Group Governmental Sales (2013), Blaise was appointed General Manager, VP China for Sunwin Bus (2014-16).
Bart Leclercq to boost strategic client alliances Bart Leclercq has joined Aurecon in Dubai as Client Director, Global Partners. Leclercq will form strategic alliances with key global partners, harnessing synergies between organisations to deliver exciting projects around the world. Leclercq will use his experience and knowledge of the Middle East to provide strategic, design and technical leadership to Aurecon’s teams working on major projects around the region. “Leclercq will be instrumental in helping us bring our clients’ big dreams to life here in the Middle East,” said Ermis Marques, Aurecon’s Regional Director for the Middle East.
“The Middle East is where achieving superlatives – the tallest, highest, fastest – is the norm. Our clients believe in challenging the status quo and constantly pushing boundaries. In this regard, Leclercq is a perfect fit for Aurecon. Not only does he have a stellar track record in the Middle East, but he shares our desire to help our clients build even bolder dreams.” Leclercq joins Aurecon from WSP, where he served as Senior Technical Director leading business development work in the Middle East. In this role he was involved in a number of landmark projects including One&Only The Palm, Dubai Trade Centre District, and City of Arabia.
Siemens appoints Adrian Wood Qatar CEO Siemens has appointed Adrian Wood (50) as Chief Executive Officer (CEO) of the company’s operations in Qatar, effective September 1, 2016. Wood assumes his new role after almost four years as CEO of Siemens in Kuwait. He takes over from Fatih Sakiz, who will pursue new opportunities. Siemens has been operating in Qatar since 1970 and currently employs around 500 people there. Some of the company’s key projects in Qatar include the Qatar Foundation Tram System and the EUR 470mn ($527mn) contract with the Qatar General Electricity and 24 construction business news me October 2016
Water Corporation for 18 turnkey substations. A key focus for Siemens in Qatar is interconnecting the virtual and physical worlds in industry, urban infrastructure and energy, driving the digital transformation. Meanwhile, Herbert Klausner (52) has been appointed as CEO of Siemens in Kuwait, effective October 1. Klausner joins the regional management team from the Power Generation Division in Siemens AG in Germany, where he headed Large Gas Turbine Berlin Operations. His career at Siemens spans 33 years, including positions in Kuwait, Indonesia, Austria and Germany.
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Contracts
Daewoo E&C wins $730mn road contract in Qatar
Daewoo Engineering & Construction has clinched a $730mn contract to build an 8.5-km section of multi-lane highway in Qatar. An existing highway located 15km south of Doha will be extended by 4.5km
and a new, 4km stretch of road will be built. The job includess construction of three multi-level interchanges. Construction work is expected to take 42 months after it begins.
Khansaheb wins $100mn Ajman mall contract
Khansaheb has won a AED 387mn ($105.3mn) contract from retail and leisure giant Majid Al Futtaim to expand and upgrade City Centre Ajman. The deal will see the company more than double the size of the existing mall to 70,000 m2 and
build a new car park to create 2,400 parking spaces. Exterior landscaping work and the re-configuration of access roads leading to the mall will also be part of the job. Work has started on the project and is expected to be completed by July 2018.
Nakheel awards $51mn deal for villas at Nad Al Sheba Nakheel has signed a contract worth AED 188mn ($51.2mn) for the construction of 133 homes at Nad Al Sheba, Dubai. Square General Contracting Co. is tasked with building the villas in the fourth and final construction package, which brings the total awards for the development to nearly AED 2.6bn. Nakheel is expected to release a construction tender by the end of the year for a 1.2 million sq ft mall as part of the master community along Sheikh Mohammed Bin Zayed Road.
Hill wins $3.8mn contract for Helios Towers in Abu Dhabi Hill International has received a AED 14.1mn ($3.8mn) contract from Al Fouad Group to provide project management services in connection with the design and construction of Helios Towers in Abu Dhabi. The project involves two skyscrapers—a 62-story residential tower and a 46-story commercial office tower— accommodating 620 residential units, approximately 53,000 square meters of office space, 5,600 square meters of retail space, and parking for nearly 1,800 vehicles.
J&P clinches contract for Qatar Foundation Stadium A joint venture led by Cyprus-based Joannou & Paraskevaides (J&P) has been confirmed as the main contractor for the Qatar Foundation Stadium, the fifth venue to begin construction for the 2022 FIFA World Cup. Located in Doha’s Education City, the 40,000 seat stadium 26 construction business news me October 2016
is scheduled for completion by the end of 2019. Preparation work completed by the CCC/TCC JV in July included further bulk excavation of a total volume of 650,000 cubic meters and implementation of a dewatering system for the next mainpackage contractor.
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Contracts
Al Fara’a wins contract for Maryah Plaza project Abu Dhabi based civil construction firm, Al Fara’a Group has been named as the main contractor on the $1bn Maryah Central development in Abu Dhabi after Taiwanese developer Farglory said it would resume construction of the project after an 18-month delay for a redesign to make it more affordable. Stationed at the waterfront in Al Maryah Island’s new financial free zone, Maryah Plaza will consist of four towers, three of which will house luxury apartments.
Bloom awards enabling works for Soho Square Bloom Properties has awarded Dutch Foundation Company and Concrete Rehabilitation with the enabling works contract for its Soho Square mixed-use urban development on Saadiyat Island in Abu Dhabi. Work is set to commence in September and is scheduled for completion in the first quarter of 2017. Soho Square is the second mixed-use development by Bloom Properties on Saadiyat and encompasses residential, retail and commercial space.
Galfar wins $157mn Duqm port contract Oman’s Galfar Engineering and Construction has been awarded a OMR 60.7mn ($157mn) contract by the Special Economic Zone Authority, Duqm (Sezad) for the construction of a fisheries port and related marine and road works. Construction work will take 30 months with an additional six months for mobilisation. Work on the port will include dredging, land reclamation, breakwaters, quay walls and concrete floating pontoons with berthing facilities.
DEWA selects advisor for 200MW CSP solar plant
Aldar hands out $70mn Shams Meera contract
Aldar Properties has awarded the AED 258mn ($70mn) main contractor package to Fibrex LLC for its mid-market Shams Meera residential development. Work will begin immediately on a pair of 25-storey towers overlooking a landscaped park in Shams Abu Dhabi on Reem Island. Consisting of 400 apartments, the buildings will share an underground basement car park, a garden area, swimming pools and a children’s play area. 28 construction business news me October 2016
A consortium of KPMG (Financial), Mott MacDonald (Technical) and Ashurt (Legal) will advise Dubai Electricity and Water Authority (DEWA) on the first phase of its concentrated solar power (CSP) plant. The 200MW project will be operational by April 2021 and DEWA will generate 1,000MW using this technology by 2030. The project lies within the Mohammed bin Rashid Al Maktoum solar park, with a planned capacity of 5,000 MW by 2030.
Market report
Dubai Primed for Growth Expo 2020 masterplan
T
he next few years look very promising for Dubai’s construction sector thanks to a surging population, tourism, Dubai Expo 2020 and strategic government investments under key initiatives such as the Dubai Plan 2021. There are approximately 3,773 construction projects in the emirate with a combined estimated value of over $400bn - including projects on hold, according to new research by BNC Network. The report, commissioned by Big 5 organisers DMG Events, shows that $100bn worth of projects have reached the tender stage or are under construction. However,
30 construction business news me October 2016
though only 21 percent of the projects in Dubai are on hold, in dollar terms they constitute around 54 percent of all project values due to several high-value projects currently still on hold. Traditional building projects covering commercial and residential property, retail, education, health care, hospitality, leisure, religious buildings and mixed use urban developments amount to 3,089 projects worth $319.8bn, accounting for approximately 77 percent of the $400bn worth of announced projects. Of these, 2,365 projects fall under residential and commercial building category with 276 projects worth $100mn or more.
Mixed use urban developments worth a total of $136.9bn constitute more than 40 percent of the value of all traditional building projects. Examples under construction include Sobha Hartland Development ($2.1bn), Royal Atlantis Resort and Residences - Palm Jumeirah ($1.4bn) and Entisar Tower ($1.1bn). Though transportation projects make up just 5 percent of the total number in Dubai, in dollar terms they make up 15 percent of all project values due to a small number of mega developments in this sector. Of the 187 transportation projects, the 10 largest ones have a combined estimated value of $47.8bn, which make
up almost 77 percent of total transportation project values in Dubai. One of the largest examples is the $2.9bn contract recently awarded to a French, Spanish and Turkish consortium to expand the Dubai Metro Red line to the Expo site. There are approximately 213 infrastructure projects in Dubai including aviation, marine, rail and roads with a total value of around $63.7bn, making up around 15 percent of all project values in Dubai. Aviation and rail projects are worth a combined $46.9bn, or around 74 percent of all infrastructure project values. KEY DRIVERS State-led initiatives support many infrastructure and building projects and the Dubai government is backing many construction projects. POPULATION GROWTH Dubai’s population currently stands at approximately 2.46 million people and
may reach 3.4 million people by 2020, a huge growth rate of 40 percent within the space of just a few years. The growing number of people in urban centers puts a strain on the city's infrastructure creating a need for expansion. Dubai currently has 319 transportation projects, including roads, with a total estimated value of $130bn. TOURISM Last year, Dubai welcomed 14.2 million overnight visitors, and is on track to reach 20 million in 2020. Upgrading airport facilities go hand-in-hand with promoting local airlines and tourism. There are approximately 14 individual airport related projects in Dubai at different stages of construction with a combined estimated value of $55.1bn. EXPO 2020 The Emirate is also getting ready to draw up to 25 million visitors to the first world expo to take place in the Middle
East, 70 percent of which are expected to come from overseas. Total spend on infrastructure projects related to Dubai Expo 2020 might reach up to $18bn, including the Dubai Metro extension to the Expo site. The centrepiece of the site itself will be the $30mn Santiago Calatrava-designed UAE Pavilion while the entire site is expected to live on after the six-month event as commercial buildings. DUBAI PLAN 2021 Dubai’s ambitious plans for sustainable growth includes building a competitive knowledge-based economy and a “Smart City,” as outlined in the Dubai Plan 2021. For example, new metro lines will allow for greater ease of mobility as well as improving Dubai’s environmental footprint. Dubai currently has approximately 21 rail projects with a combined estimated value of $56.6mn. Eighteen of these projects are at the concept or tender stages of construction.
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construction business news me October 2016 31
In person
In We spoke to the bigger clients here such as Meraas and Emaar and they were very excited about our offering
32 construction business news me October 2016
t n e g telli n g i s e D After more than half a century in the Gulf, Kuwait based SSH has spread its wings with new offices in Riyadh and Dubai and things are really taking off. It took quite a while for SSH to get around to establishing a presence in Dubai but the multidisciplinary design and engineering firm is now making up for lost time. The Kuwaitbased company has been active in the Gulf for 55 years but only last year opened its first office in the emirate. Such has been the response that SSH is already taking on more floor space and increasing the head count at its base in Dubai Design District. “When we came to Dubai we had a five year plan, we didn’t expect it to move so quickly, but the key thing we’ve noticed is that the bigger Dubai clients like the offer that we have,” explains Michael Byron, resident director UAE, who is responsible for winning and delivering work. “The response we’ve had from our client base here is phenomenal. We came to Dubai as a regionally based company but with an international design team. We spoke to the bigger clients here such as Meraas and Emaar and they were very excited about our offering.” SSH is working with Meraas as lead consultant on phase 1 developments north and south of the new Dubai Water Canal. The project is still in the design phase so exact details have not been announced but
Byron reveals the development will include hotels, serviced apartments, houses and retail. The company has been appointed by Emaar on Harbour Views, a two-tower residential project at Dubai Creek Harbour, and is also about to begin working with Wasl properties in Dubai. Byron explains the advantages that SSH, as a locally based company can offer over some of its larger competitors. The company has a studio of about 80 designers in Dubai which service clients directly. They include front end designers, visualisers, mechanical engineers and structural engineers. “We’re competing with the big international companies but all of our team is based here and we have a team all around the Gulf so we can draw on those resources,” he says. “We don’t fly in and out, our team is here. All of our top engineers and architects are based here in Dubai. We can go and see the clients directly, sometimes at even an hour’s notice.” The Dubai push is just the most recent example of the quick fire expansion that has seen SSH grow organically from 350 to 1,100 employees across the region in the space of just four years. The company also opened a Riyadh office last year to add to construction business news me October 2016 33
In person
Jaber Al Ahmad Cultural Centre
GCC branches in Bahrain, Oman, Qatar, Abu Dhabi and its home base of Kuwait. Byron says further expansion to around 1,500 employees is on the cards in the next few years. Impeccable credentials SSH offers the full scope of services from master planning through to construction supervision. The firm’s core five disciplines are architecture, interior design, structural engineering, MEP engineering and landscape architecture. Healthcare, hospitality and residential projects make up around 90 percent of its work at the moment. “It’s where the opportunities are and it’s where we believe we can deliver the best value,” says Byron. “Healthcare is not an easy sector but we have a very good dedicated healthcare team and we have a number of projects in Kuwait. With the company being 55 years in Kuwait we have very strong relationships there.” Byron says the most exciting work undertaken by the company recently are major cultural projects in Kuwait such as The Jaber Al Ahmad Cultural Centre, a national theatre, opera, music, archive and conference centre. SSH has taken the project through as lead consultant from design to over34 construction business news me October 2016
seeing contractor Al Hani which is close to finishing construction. It has also worked on a museum in Kuwait for the same client, the Amiri Diwan, in collaboration with contractor Al Ghanem. The exterior is finished and fit out is underway. SSH is very active in Oman where it recently oversaw the Oman Convention and Exhibition Centre (OCEC) in Muscat, a project it inherited from another consultant a few years ago. It took the project through to construction supervision and the client has reappointed it for the third phase. Surprisingly, one country where SSH has less of a presence is Qatar. “We are active in Qatar although we’re a little bit more conservative,” Byron says. “We’re focused on healthcare and on some private clients. We’ve been appointed on a large hospital which is now on hold but we’re hoping to remobilise sometime soon. And we’re in the design phase of a mid-size shopping mall. Qatar is a market where it’s extremely important to manage risk and to have a strong client relationship.” Byron believes SSH has successfully navigated itself through the worst of any oil price induced downturn in the region.
“We’ve had to respond to pressure in the market, it hasn’t been plain sailing, there was definitely a reaction towards the end of last year and early this year,” he admits. “We’ve responded by becoming more flexible and reducing our cost base. Many of our competitors have had to do the same. We can see more stability moving forward. That correction has taken place and there has been consolidation in the market overall. We can see a strong trend moving forward. The peaks and troughs won’t be as significant.” Overall, Byron is bullish on the prospects for SSH in the region, especially in its home market of Kuwait and in Dubai. More surprising, perhaps, is how upbeat he is on another of its new markets. “We expect to see continued growth in Kuwait,” he says. “The government is committed to rolling out projects which we have a good chance of participating in. We see our Oman business continuing to be strong, we see growth areas here in the UAE, it’s very robust. We have a good business in Bahrain as well with a good platform of work. But the big growth market for us in the next five years will be Saudi.”
Cover story
36 construction business news me October 2016
The launch of more affordable housing in Dubai is a sign of a maturing market. But is it really affordable? By Jason O’Connell
C
ityscape Global in Dubai is traditionally accompanied by a flurry of announcements from big name developers keen to show off their high end projects at the show - and this year was no exception. Dubai holding, Emaar, Nakheel, DAMAC and all the usual suspects were out in force with giant booths displaying models of their glitzy developments in minute detail. The star of this year’s show was undoubtedly the $20bn Jumeirah Central project, announced by Dubai Holding on the eve of the show. Occupying 436 hectares in a prime central Dubai location along Sheikh Zayed Road opposite Mall of the Emirates, news of this ‘city within a city’ will have been music to the ears of the construction industry. The project will involve 250 individual building projects and be home to 35,000 residents, three shopping malls, 7,200 hotel rooms and space for 45,000 cars. Nakheel, one of Dubai’s busiest developers so far in 2016, also featured strongly with a pair of new twin tower projects located on Palm Jumeirah and Ibn Battuta Mall respectively. These added to a string of announce-
ments in the months leading up to Cityscape for projects in every corner of the city such as Jebel Ali, Deira Islands and Dragon City. DAMAC Properties unveiled a number of new villa and apartment projects during the show under its AKOYA brand, taking its year-to-date tally to 10 projects worth a combined AED 13bn. Emaar was on hand to display a spectacular model of the Santiago Calatrava-designed tower monument that will landmark the Dubai Creek Harbour mega development. The Mohammed Alabbar-led firm also unveiled its latest offering in Dubai South near the new Al Maktoum International Airport. Emaar South will be a mixed use development with 15,000 homes, community retail, an 18-hole championship golf course & clubhouse, hotels, schools, and leisure amenities. Separately, master developer Dubai South launched The Villages and The Pulses, the first of many communities that will make up the $25bn residential component of a development that will eventually be home to 1 million people. These are just a handful of projects, some of them on an unprecedented
construction business news me October 2016 37
Cover story
scale, to launch in Dubai in recent months. What do they tell us about the general wellbeing of Dubai’s real estate market, bearing in mind that property values have been flagging for the best part of two years and are apparently set to fall until at least the tail end of next year? Faisal Durrani, head of research at Cluttons, says a phased introduction will help the market absorb these developments. “In the three days leading up to Cityscape we saw 30,000 units announced which isn’t unprecedented but there is sometimes a danger when such large projects are announced that the market might react badly, particularly when it is softening. “But when it comes to such big projects, particularly with all of them concentrated in three developments, you need to remember that a lot of these are going to be phased and might be built over a much longer period of time than the initial first phase delivery of these things which is expected in 2020. “We’re not going to include these things in our pipeline until contracts have been awarded and tenders have been put out. So these are all part of the vision that Dubai has to double the population and to bring in 20 million tourists by 2020 which is why all announcements are anchored around that date.” Who lives in a place like this? One high end project that is hitting the market right now is the exclusive $2bn Alef Residences and accompanying hotel on the Palm Jumeirah. General contractor Al Futtaim Carillion has topped out both buildings and is on track to complete construction in the second quarter of 2017. The ultrahigh end residential component consists of eight mansions and a total of 104 homes with an average price tag of AED 24mn ($6.5mn). A penthouse duplex will set you back a cool AED 51mn while an entire mansion retails at a whopping AED 268mn. With such a small pool of potential buyers it’s perhaps not surprising that units are not exactly flying off 38 construction business news me October 2016
Farhad Azizi
“People initially plan to come to Dubai for a short time but they end up staying longer and that encourages them to buy,” Farhad Azizi
the shelf. The project is still only 20 percent sold and the developer says it is close to selling another 20 percent. But Matthew Bate, executive manager of Al Sharq Investment, a joint venture of Qatar’s Al Mana Global and Saudi Arabia’s Al Sharq Group, says sales, which began in November 2018 long after construction started, are on track. “It’s a very bespoke product where you’re dealing directly with very high net worth individuals,” he says. “Typically we’ve found that the people that would buy into this already have
an association with Dubai, perhaps because they holiday here and like it. But we also have people that will use it as a home. “It helps to have nice market conditions and the market hasn’t been in our favour, there’s no doubt about it. When we first started looking at this product we knew we were somewhat isolated from typical market conditions. You’ve always got high net worth individuals and there’s nothing else like this in Dubai so it fills that market niche.” Though this is the JV’s first project Bate says it definitely won’t be the last although the company is in no rush to go out and start aggressively building. “It’s not just a matter of selling the rest of these apartments before we start another, it’s also a matter of leveraging what you’ve done,” he says. “We didn’t sell off plan because this is the first development so we wanted people to know that this was real and that we would deliver.
“We only went to market 18 months before opening which is quite unheard of in Dubai. If you look around Cityscape people are going to market with a delivery time of four to six years but that’s not what we wanted to do. We want to get this right and get the confidence in the market and build the Alef brand. When we go to do another development people will know us as the company that did the Alef residence on the Palm.” Market evolution – towards affordable housing Even for Dubai, the Alef Residences is a somewhat extreme example of luxury. But at the opposite end of the scale new developers are emerging to meet rising demand for more affordable homes. One of these is Danube Properties, which has launched six residential apartment projects to date, all of which are sold out. Danube started off with villas in Al
Design
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Furjan then a project in Studio City next to Mall of the Emirates. It returned to Al Furjan with an apartment building and is about to launch a new project in Arjan next to Miracle Garden. The first of its six projects is due to be delivered this month, several months ahead of schedule. “Our policy is very simple,” says Rizwan Sajan, CEO of Danube. “To start one project at a time. We make sure we sell it and award the construction contract for the project before starting a new one. If you invest in Danube you’re sure to get delivery on time. We don’t overstretch ourselves. Other developers start two or three projects at a time. Our projects are not big, just AED 300-500mn each is the maximum.” So why is now the right time to invest in the more affordable, mid-market property segment? “Prices in Dubai are very low,” Sajan says. “You can own a furnished
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construction business news me October 2016 39
Cover story
HH Sheikh Mohammed visits the Nakheel stand at Cityscape Gobal
studio apartment for AED 450,000 – AED 500,000 and the rent for that is AED 50,000 – AED 60,000 per year. So instead of paying the rental I would rather put my money towards owning my own apartment, and with the flexible payment plans which we have, we are only charging you 1 percent per month which is a very good way of investing your money. Today is a good time to invest because Dubai is almost at the bottom, you can’t go much cheaper than this.” Though he plans to take it one project at a time, Sajan says he hopes to launch three to four projects per year. “The market looks very good now and I can only see it going up over the
40 construction business news me October 2016
next four to five years. If you haven’t already bought I would strongly recommend buying anywhere in Dubai. You don’t have to buy from Danube, but do buy now because in a couple of years you won’t be able to buy at these prices.” Higher up the scale is Azizi Developments, which currently has a pipeline of 20 projects also very focused on the up and coming Al Furjan neighbourhood near Ibn Battuta Mall in the south of Dubai. Its’ two-tiered stand is one of busiest at Cityscape. Though it’s not allowed to sell on site, Azizi has an office within walking distance of the venue at Dubai World Trade Centre.
The company has already handed over two residential projects and expects to handover one or two new projects every month. By the end of the year the Azizi will have handed over a total of 856 apartments in five developments, all in Al Furjan. Farhad Azizi, chief executive officer of the company, says there has been a clear shift in the market, with more people wanting to get on the property ladder. Two years ago Azizi was selling 25 homes a month but in August it sold 263 apartments and many of the buyers are end users rather than investors. Azizi believes it can manage 15 to 20 projects in a year and plans to
Cover story
Nakheel’s Palm 360 twin towers on Palm Jumeirah
launch 15 in 2017 and the same again the following year. A typical two bed residential apartment in Al Furjan costs around AED 1.3 to AED 1.4mn. A one bed is AED 1mn and a studio is around AED 500 to 550,000. All of its properties come fully furnished. “People initially plan to come to Dubai for a short time but they end up staying longer and that encourages them to buy,” Azizi says. “That demand has grown significantly. I’ve been speaking to some of our customers and they’re saying ‘I’ve been renting for ten years and now I wonder why’. In those ten years they could have bought and paid for a property and resold or rented it out for a higher price.” The trend towards more end user ownership has also changed with the help of the banks and more flexible
42 construction business news me October 2016
payment plans, Azizi says. “Our payment plan is 30 percent during construction and 70 percent at handover. We have a very strong mortgage department to help the client get financing through the banks which makes everything simpler. That facility has been great for us.” Though Azizi has projects in other areas of Dubai, notably the Palm Jumeirah, the bulk of its developments are in Al Furjan. Azizi explains the appeal of the area: “Al Furjan is an up and coming area with a lot happening,” he says. “Nakheel is building and Danube and many other private developers are there. It’s close to Ibn Battuta Mall, Sheikh Zayed Road, Discovery Gardens and The Gardens. The new metro is coming close to our projects and the Expo site is not far away. The area has a big future and
is affordable. In five years it will be even better. Emirates Hills used to be very affordable but not anymore.” But is it really affordable? There seem to be wildly differing definitions of the term affordable and some developers may be stretching it to the limit. Many of the properties dubbed affordable may in fact be beyond the reach of the average buyer. “People are struggling with the definition of affordable housing,” says Clutton’s Faisal Durrani. “From our perspective all we can do is look at average incomes and an average household makes about AED 200,000 per year. If you’re looking for a mortgage you might get three to four times that which means something priced between AED 600,000 and AED 800,000. As a family home, that’s unavailable in the market right now.
STAND NO, SSB 111 STAND NO. 327-4
Cover story
Alef Residences on Palm Jumeirah
“You’ve got Nshama’s Town Square which has three bed townhouses priced at AED 1.2mn which is the cheapest townhouse on the market today. However when compared to what people can secure as a mortgage against an average household income it’s still twice that. There’s a danger that the word affordable is being lost because every developer is announcing schemes they claim are affordable but in reality are probably not.” Durrani says it would be helpful to have some guidance from the Federal government which in the past stepped in to introduce mortgage caps to limit speculative activity. Options for government intervention in the UAE housing market include the UK route of having quotas of affordable housing. Alternaively there’s the Singapore model of having a housing development board. Dubai Municipality has sectioned off parts of the city which they say are going to be used for affordable housing, however Durrani says we still haven’t seen very much in the way of development going into those areas. He says developers need to be given an incentive to build affordable housing on their plots. 44 construction business news me October 2016
Faisal Durrani, Cluttons
“It’s not a question of the land price being too expensive or build costs being too high but there’s no talk about it at a federal level so it’s not at the front of developer’s minds,” he says. Another issue is that there may be a bit of a stigma attached to affordable housing in a market best known for high end developments. “Right now affordable is almost like a dirty word,” Durrani says. “There are a lot of developers in this market who’ve built substantial portfolios of glitzy projects earlier on and there
might be a reluctance to focus their attention on something that’s less shiny and perceived to be of lower quality. “That mind shift has yet to happen. They need to understand that this is a vastly underserved segment of the market and there are huge opportunities to cater to local and domestic demand from people struggling to get on the property ladder. People are staying longer in Dubai and in order to put down roots you need to be able to afford to buy and right now that’s a distant dream for many.”
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Dubai Mega Projects These projects are expected to underpin Dubai’s development over the next decade and lead to a bonanza for construction contractors.
Jumeirah Central
Jumeirah Central is a $20bn urban mixed-use city district that will comprise 47 million sq ft of gross floor area just off Sheikh Zayed Road opposite Mall of the Emirates. The whole project will consist of 278 individual building projects and include 11,000 residential units, 1 million sq ft of retail space, 8 million sq ft of office space, 7,200 hotel rooms, 40 new entertainment attractions, 37 plazas and 33 parks. The development will have 25 points of access and eight modes of transit such as metro, tram, buses and aerial transportation system. Overall the master plan is 35 percent residential, 21 percent office space, 19 percent hotels and 24 percent retail and 1 percent other. Construction of the first phase is set for 2017.
46 construction business news me October 2016
Dubai Creek Harbour Nestled alongside the Ras Al Khor wildlife sanctuary on the creek, Emaar’s 6 square kilometre masterplanned community will be more than twice the size of Downtown Dubai and have 2km of waterfront and house 679 million sq metres of residential space, 851,000 sq metres of commercial property, 22 hotels with 4,400 rooms and 11.1 million sq metres of retail. The Santiago Calatrava-designed tower that will be the centrepiece of the huge development will cost $1bn and be 100 metres taller than Burj Khalifa. Construction contracts are expected to be awarded soon with Emaar targeting completion in time for Expo 2020.
Dubai Parks and Resorts Set to open its doors on October 31, Dubai Parks and Resorts consists of three main theme parks – Motiongate, Bollywood and Legoland plus Legoland water park and the Riverland retail, entertainment and dining district. Around 6.7 million ticketed visits are expected in 2017. Construction work has already begun on a fourth theme park – Six Flags – which is due to open in 2019. The entire AED 13.2bn ($3.6bn) development is spread across 30.6 million square feet of land located on Sheikh Zayed Road opposite the Palm Jebel Ali and equidistant to Dubai and Abu Dhabi International Airports. Meraas Holding is the majority shareholder of Dubai Parks and Resorts.
construction business news me October 2016 47
TAKE 10
Bluewaters Island Construction of Meraas Holdings’ AED 6bn ($1.63bn) development on a manmade island opposite Jumeirah Beach Residence has reached an advanced stage and the project is set for completion in 2018. The standout feature of the project is undoubtedly the world’s largest ferris wheel which will stand 210 metres tall. Three million visitors a year are expected to descend on the island which will also feature numerous retail, residential, hotels and entertainment offerings.
Deira Islands Infrastructure and coastal works are well under way at Deira Islands, which will add 40 km, including 21 km of beachfront, to Dubai’s coastline. The project is a scaled down version of Palm Deira, which Nakheel initially launched in 2004 as an AED 11bn artificial island like Palm Jumeirah and Palm Jebel Ali. The current incarnation was relaunched in 2013 and progress has accelerated recently with a number of contracts handed out and the entire project is expected to be completed in 2020. Consultant AE7 will lead construction of the single largest component of the project – the AED 5bn, 20-tower Deira Islands Boulevard. Dar Al Handasah will oversee design, engineering and construction supervision of a AED 900mn resort and waterpark. Nakheel is also developing Deira Mall and Deira Islands Night Souk, among other new attractions.
Dubai Expo 2020 The master plan for the Expo 2020 site was approved in May. Enabling work to prepare the 4.38-square-kilometre site located in the south of the city close to Dubai Parks and Resorts and the new Al Maktoum International Airport - have been completed and infrastructure works will continue until early next year when construction on the main buildings will begin. The bulk of the buildings are expected to be ready by the end of 2019, well ahead of the start of the event which is scheduled for October 2020. The site will be served by a 15km extension of the Red Line of the metro from Nakheel Harbour and Tower station.
48 construction business news me October 2016
Dubai Watar Canal The 3.2 km canal will link Dubai Creek from Business Bay to the Arabian Gulf, effectively turning a huge chunk of central Dubai into an island. Construction of the AED 2bn ($550mn) canal has been a major undertaking, cutting a swathe through a busy part of Dubai including across the city’s main thoroughfare, Sheikh Zayed Road (SZR). A number of bridges have been built to cross the water at SZR, Jumeirah Beach Road and Al Wasl Road, necessitating lengthy traffic diversions. The vast majority of excavation work has been completed and canalside infrastructure, including 10 water stations, is currently underway. The canal is encouraging the development of high end projects on its banks including the almost complete Al Habtoor City and DAMAC’s Aykon City development.
Meydan One Meydan One, on the opposite side of Al Khail Road to Downtown Dubai, will become home to more than 78,000 residents and feature the 711m tall Dubai One Tower, Meydan One Mall, a Civic Plaza with dancing water features, a 4km canal and a 100 berth marina and the world’s longest indoor ski slope. The centrepiece of the whole development will be the Meydan One Mall which will feature a 150m long by 80m wide retractable roof and the largest dancing water fountain in the world, measuring 400m in width and 100m in height. The first phase of the development is expected to be ready in 2020.
construction business news me October 2016 49
TAKE 10
Dubai South Formerly known as Dubai World Central, Dubai South was launched in 2006 as a purpose-built city with an eventual population of one million built around Al Maktoum International Airport, which will be expanded in phases to a capacity of 220 million passengers per year. The 145 sq km city is really a series of mega projects rolled into one. The airport, which by some estimates could eventually cost up to $32bn, will be just one of nine districts with hubs also dedicated to aviation, logistics, residential, exhibitions, golf, commercial activities, the humanitarian sector and a business park. The residential district alone will cover 87 million square feet of real estate developed at the total estimated cost of AED 25bn. The first residential projects – The Villages, The Pulse and Emaar South – were unveiled at this years’ Cityscape
Mall of the World Recent developments suggest that this $22bn mega project has slipped down the list of the government’s priorities following the announcement of Jumeirah Central. Though Dubai Holding insists it remains committed to the project, it recently announced it will move to an unspecified location on Mohammed bin Zayed Road, it’s third relocation since it was first announced in 2014. The original plans called for 8 million square feet (745,000 square metre) of shopping space connected to a theme park, 100 hotels and serviced apartment buildings with 20,000 rooms.
50 construction business news me October 2016
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Legal viewpoint
New Firefighting Code Requirements: Who bears the Risk? Contractors must be mindful of new regulations when pricing their tenders, says Heba Osman, Partner, Fenwick Elliott
I Heba Osman, Fenwick Elliot LLP
54 construction business news me September 2016
n the last couple of years there have been several notable building fires in the UAE, highlighting the need for certain actions that must be taken to ensure safety of constructed buildings, particularly high-rise towers. This has also prompted the Dubai Municipality to update its existing Fire Fighting Code by issuing on 20 April 2016 circular number 215 dealing with the protection from fire and prohibiting the use of any flammable materials in buildings or cladding (Circular 215). There is also talk of a new Federal Fire and Life Safety Code (Firefighting Code), which would apply to all buildings in the United Arab Emirates. This Circular 215 states to have come in effect on the date it was issued, and mandates that all consulting engineering firms, contractors, suppliers and developers abide by its new requirements. Circular 215 provides, inter alia, that it is not permissible to use: 1. any flammable material or any material in which flammable material was used to manufacture or any systems that may reduce the ability of the material to fight fire. It is only permissible to use these materials if the ratings of such material are in accordance with the Dubai Firefighting Code or with certain chapters of the US Firefighting Code (NFPA 5000); 2. exterior walls and cladding systems that are not fire proof in accordance
with either of the aforementioned Firefighting Codes; which should also remain fire proof for at least 3 hours for any building or 2 hours for private villas; and 3. any flammable material in painting, adhesives or other materials that are used within the building that have a firefighting rating less than aforementioned exterior walls. Circular 215 also sets certain requirements in respect of the design of the false ceiling and other spaces within the building and its windows to ensure that in the event of fire, areas can be segregated to prevent it from spreading. Similarly, the Firefighting Code appears to set various new requirements or enhancement that all parties and companies involved in the construction of any building are required to abide by these requirements. The question that this article deals with is, who bears the financial risk associated with these new or enhanced requirements? The simple answer is: it depends. Looking at the FIDIC 1999 New Red Book (which remains to be one of the most commonly used standard forms of contract in the region), it provides in Clause 1.13 that the Contractor is under an obligation to comply with all applicable “Laws”. The word “Laws” is defined as “all national (or state) legislation, stat-
The Address Hotel Downtown
utes, ordinances and other laws, and regulations and by-laws of any legally constituted public authority”. The main question here would be whether Circular 215 or the Firefighting Code fall within the remit of this definition? Arguably yes, as the definition includes ordinances which are, simply put, regulations issued by a governmental entity; which would include a circular issued by the Dubai Municipality or the UAE Directorate of Civil Defense both being legally constituted public authorities. Therefore, the main position is that the Contractor is the party who bears the risk of these enhancements or new requirements and should price its ten-
der or contract bearing in mind that it is under an obligation to comply with its provisions. However, as these regulations are relatively new, it is important to consider whether it entitles a Contractor to claim an extension of time or additional cost. This is logically possible if the changes or enhancements were not specifically required under the Contract at the time of concluding it. Turning again to the FIDIC 1999 Red Book, Sub-Clause 13.7 titled “Adjustment for changes in Legislation” may be of help in instances when Circular 215 has come into effect after the conclusion of the Contract. This SubClause 13.7 reads:
The Contract Price shall be adjusted to take account of any increase or decrease in Cost resulting from a change in the Laws of the Country (including the introduction of new Laws and the repeal or modification of existing Laws) or in judicial or official governmental interpretation of such Laws, made after the Base Date, which affect the Contractor in the performance of its obligations under the Contract. If the Contractor suffers (or will suffer) delay and/or incurs (or will incur) additional Cost as a result of these changes in the Laws or in such interpretations, made after the Base Date, the Contractor shall give notice to the Engineer and shall be entitled construction business news me September 2016 55
Legal Viewpoint Torch Tower, Dubai Marina
subject to Sub-Clause 20.1 [Contractor’s Claims] to: • (a) an extension of time for any such delay, if completion is or will be delayed under Sub-Clause 8.4 [Extension of Time for Completion]; and • (b) payment of any such Cost which shall be included in the Contract Price. After receiving this notice, the Engineer shall proceed in accordance with Sub-Clause 3.5 [Determinations] to agree or determine these matters. On a first reading this provision appears to set the risk of the changes or enhancements to the existing Firefighting Code on the Employer, which is somehow correct. However, this is subject that this new “Law” would have come to effect prior to the “Base Date”. The FIDIC 1999 Red Book defines this “Base Date” as “the date 28 days prior to the latest date for submission of the Tender”. This means that for this provision to apply the change in legislation must have taken place within the 28 days prior to the closing of tender date. If it has occurred before it, the argument would be that the Contractor should have known of these legislations and taken account of it when preparing its tender. The reason this “Base Date” is important as there have been many discussions in the media as to when the Circular 215 would come into effect. There are also several articles suggesting that this Circular 215 would come into effect after its translation to English. While the source of this suggestion is not clear however, this Circular 215 itself states in Arabic that it comes into effect on the date it has been issued being 20 April 2016. Accordingly, it would be logical to accept that this is the effective date unless the
56 construction business news me October 2016
Dubai Municipality states otherwise. Nonetheless, the Contractor’s right to receive an extension of time and/or additional payment is not automatic. The Contractor must send a notice stating how this is a change in the law and how exactly it affects the time for completion and/or cost. Parties on all construction projects in the UAE, especially those in the tendering phase, must take note of the enhanced and new requirements
regarding firefighting. On one hand, it is important that contractors, subcontractors and suppliers ensure that they price their tenders taking into account these requirements even if such is not specifically mentioned in the tender documents or the contract. On the other hand, designers and consulting engineers must ensure that their designs and specifications prepared for the project are in compliance with such new provisions and requirements.
On site
Central Perk Gulf Related is making steady progress on a retail destination that should breed new life into downtown Abu Dhabi. Jason O’Connell writes.
O
ne year into construction and the Al Maryah Central shopping mall in downtown Abu Dhabi is taking shape. Anchored on one side by the first Macy’s department store outside the United States and on the other by the second Bloomingdales in the UAE, the $1.05bn project will connect to the existing Galleria Mall to form a 2.8 million square feet shopper’s paradise, equivalent in size to Dubai’s Mall of the Emirates. This will be the retail element of a
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larger, mixed-use waterfront development on Al Maryah Island that includes the existing Rosewood and Four Seasons hotels plus the city’s Central Business District (CBD) and the Cleveland Clinic next door. Plans for a pair of towers, one of them containing a hotel, have reached an advanced stage. Gulf Related, a joint venture of Gulf Capital private equity group and New York-based Related, one of the largest private real estate companies in the US, is developing the project, its second after
the high end Galleria Mall next door. The company broke ground on site in November 2014 and excavated 160,000 m2 in the space of five and a half months, says Andrew Tonner, senior vice president Project Management at Gulf Related. Securing permits early allowed the company to proceed with works such as piling (950 piles), which was carried out by NSCC and the shoring which was done by Bauer construction. In the meantime Gulf Related concluded a tender process and selected Mul-
tiplex as the main contractor in August this year. The Australian company is now 12 months into a 33 month schedule and is overseeing around 20 subcontractors. Handover is expected in January 2017 allowing for an 11-12 month fitout period before the mall opens to the public in March 2018. Around 6,000 workers are currently onsite which is expected to swell by a further 2,000 at the fitout stage. Tonner says progress has been relatively smooth so far but will get more complicated once fitout gets underway for the 400 tenants that will eventually move in. Handover of the two department stores is set for January 2017. “That’s where the bigger headache is, in the retail mall and that’s where the lessons learned from the Galleria and the experience in our team comes to bear. We know where the challenges and pitfalls are and we’re prepared to deal with this,” says Tonner. “For instance we’ve already chatted to the Municipality about early permitting for tenants to get them in ahead of time and make sure their designs are ap-
proved and they can get the contractors appointed so that when we’re ready to let them in they can come straight in. “We’ve maybe 50 or 60 fitout guys that interact with the tenants. If you imagine 400 tenants it’s a huge exercise in terms of getting all these guys design approved. And then there’s the authority approval and site logistics.” Market Mechanics Does Abu Dhabi really need another mall? After all, anyone that has visited the Galleria can’t fail to have noticed that it’s not the busiest shopping destination around. But its developers insist that Al Maryah Central is targeted at a different demographic altogether while its downtown location should give it the edge over competitors. The sheer variety of what’s on offer also means there will be something for everyone. For example, it will have Family World and Sport World, two destination retail parts of the shopping centre on the roof with lots of outside space. “It’s more urban than most projects of this kind, sitting right in the immediate
density of downtown,” says Kevin Ryan, chief operating officer & managing director, Gulf Related. “There are 13 bridges on this island (6 open right now) so connectivity is very good. “The Galleria is the luxury section of this combined set of projects and there’s 15 waterfront licensed dining venues. That’s a big differentiator compared to, for example the major shopping malls in Dubai. It’s very upscale in terms of its finish but the leasing mix is mid to upper level. Luxury stays in the Galleria. We’re also spending quite a bit of money on the outside of the building to make sure it’s very appealing in this environment which is the new central business district.” Ryan says the four storey department stores at either end of the building will help attract a wide variety of visitors to the mall as each one occupies a different space in the retail market. Gulf Related managed to lure Macy’s and Bloomingdales as anchor tenants for the development thanks to its close relationship with Al Tayer Group, which holds the local license for both brands and is also one
construction business news me October 2016 59
On site
of the largest tenants in the Galleria. This is Al Tayer’s second Bloomingdales in the UAE following the Dubai Mall and the Al Maryah store was designed to the group’s specifications. “At the time that we launched this project Al Tayer Group was in the process of getting the Macy’s license. Macy’s Inc is the parent company for both Macy’s and Bloomingdales. Macy’s is well known as being value driven, with lower price points and a lot of their own brands. Bloomingdales sits higher up. Between the two they cover mid-market merchandise all the way up to luxury.” Abu Dhabi has been harder hit than Dubai by the drop in oil prices in the past couple of years. Is Ryan concerned about the dip in market conditions? “It is more challenging,” he admits. “Things have slowed down a little and maybe we have to negotiate a little more tightly. But because of our location we think we should be market dominant due to location, quality of anchoring and the fact that it’s part of a mixed use development with good access. So in general our outlook is still pretty positive. And also we’re not opening for two years.” Ryan is sticking firmly to the opening date of March 2018. “There are always challenges, particularly in this region, but we did open the Galleria on time so it’s our goal to repeat that again,” he says. 60 construction business news me October 2016
Al Maryah Central in numbers $1.05bn total cost
Started Nov 2014 March 2018 completion date
6,000 workers
2.8
million sq ft of retail space
400 tenants
Al Maryah Central is now 50 percent leased, with over 785,000 square-feet of signed leases. As well as Al Tayer Group leading retailers Dubai Holding, Majid Al Futtaim, Chalhoub Group have signed up a number of their brands and there will also be a 21 screen multiplex by VOX with IMAX. The Two Towers Gulf Related plans to issue separate tenders for a pair of towers that will be part of the same complex as the mall and the CBD. One of the buildings will
offer 225 luxury apartments while the other will contain a 200 key five star hotel and 150 serviced residents. “We’re in the early design stage for both towers in the north and south corners and looking to procure a contractor by the end of the year,” says Ryan. “We view them as separate projects because they’re independently financed. We’ll have different investor groups and probably different contractors for each tower. We’ve put retail in the bases so it plugs into the shopping centre.” With a combined development cost of around $480mn, Gulf Related expects to complete financing for the 400,000 sq ft buildings by the end of this year, finalise design in 2017 and complete construction of both towers in 2020. Though Gulf Related plans to do more projects in the region, Ryan says it will probably focus on quality rather than quantity and shift its attention more towards the residential sector. “There’s not that many more opportunities for more shopping,” he says. “We think there’s room for Al Maryah Central but probably not for another one of this scale in Abu Dhabi. But what happens is if you do good projects they have a tendency to generate business for you. So doing the Galleria turned out well the way it did.”
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COMMENT
Green leap forward Why Qatar has moved to recycle construction waste into building materials. By Dr. Khaled Hassan, Country Director – Qatar, TRL
A
s Qatar’s construction activity continues to remain at an all-time high, the country has placed key reliance on the importation of materials that are essential to its ongoing construction projects. Now Qatar has taken a big eco-friendly step in its move to transform construction waste into building materials—not only resulting in a reduction of costs for these projects but also reducing its carbon footprint and protecting the environment. Recent industry reports have shown that some of the large-scale infrastructure projects underway in the country are now dealing with the challenge of an unmet demand of high-quality materials and have resorted to imported aggregates for use in asphalt and concrete applications. In addition, the high amount of construction activity has also generated a large amount of construction and solid wastes, which are sent to local landfill sites. Seeking to address this issue, Transport Research Laboratory (TRL), a leading transport consultancy and research firm, along with a group of stakeholders embarked on a project called, ‘Innovative Use of Recycled Materials in Construction.’ The endeavour included collaborative partners Qatar Standards, which is a part of Qatar’s Ministry of Municipality and Environment, Public Works Authority (Ashghal), and Qatar University. This three-year undertaking
62 construction business news me September 2016
Dr. Khaled Hassan project focussed on the transformation of waste materials into building materials. The project was funded by the National Priorities Research Program (NPRP), which is administrated by the Qatar National Research Fund (QNRF) at Qatar Foundation. The ‘Innovative Use of Recycled Materials in Construction’ project complements Qatar’s policy towards achieving sustainable development and the move to protect the environment—two vital points mentioned in the country’s national vision. The initiative not only looks towards addressing the shortage of locally available aggregates but also aims at increasing awareness on the importance of green construction in Qatar. The project has successfully resulted
in the identification of main waste streams in Qatar including recycled aggregates from excavation waste (EW), and recycled concrete aggregate (RCA) being sourced from a landfill site at Rawdat Rashid. Considerable quantities of recycled aggregate were identified, which can significantly contribute to the efforts of reducing relying on imported aggregate to meet the demand for construction applications. A series of comprehensive laboratory tests were carried out in order to identify the optimum use of EW and RCA as unbound pavement materials and coarse aggregate in structural concrete, non-structural concrete and concrete blocks. Based on the results, optimised mixtures were selected and later used in the construction of full-scale site trials (buildings and roads) to demonstrate how to apply the new recycled materials and mixtures in practice. The performance of recycled materials in service was observed for a period of two years—subjecting the project sites under normal exposure conditions such as heat, humidity, aggressive ground conditions, and heavy trafficking. The results were used to update the Qatar Construction Specifications (QCS 2014) and promote green construction of buildings and roads. The latest edition of the QCS, which was published in 2014, permits the use of recycled aggregates from EW and RCA as coarse aggregate in concrete at up to 20 per cent replacement of imported gabbro for structural concrete and up to 50 per cent for non-structural concrete. Recycled aggregates are now also permitted up to 100 per cent in subbase applications. Also, excavated limestone waste is permitted as aggregate in asphalt in the lower layers of the pavement, but not in the surface course. During the project, the recycled aggregate materials were supplied by Qatar Quarry Company – Lafarge; the building trials were constructed by the Qatari Arabian Construction
Company (QACC); and the trial road is constructed by Boom Construction Company. A key factor to the success of the project is the strategic collaboration between government, industry, research and academia, all of which have expressed support for the government’s objectives of sustainable development and green construction. Industry experts have pointed out that the use of recycled aggregate will help drive in major economic and environmental advantages as compared to the use of imported aggregate. A comparison of the likely costs of local recycled aggregates in Qatar indicated a significant reduction of up to 60 percent as compared to imported aggregates. Studies of the project also relevantly showed that the use of local recycled aggregate has driven in a reduction of the carbon footprint by at least 50 percent, which can be attributed to the energy saving in the transport and shipping of the imported aggregates to Qatar. Other drivers include the limitations on port capacity and concerns about the quality of imported aggregate. The implementation of recycling in construction on a large scale would require significant changes to the existing construction practices in Qatar. To address this, codes of practice, standards and guidelines have been developed for sorting out waste at source before sending it to landfill and certifying recycled aggregate by Qatar Standards. These will significantly improve the quality of recycled materials, provide confidence in use, and change the perception of inferior quality of recycled materials. Guidance documents have also been prepared to provide experience on the use of recycled aggregate in different construction applications. TRL, in collaboration with Qatar Standards, has also recently released a guidebook entitled, 'Recycled Aggregate in Construction – Qatar Experience,' which seeks to raise awareness and help Qatari construction companies comply with the new
set standards. The 225-page book includes a comprehensive data on the construction industry in Qatar and the potential of recycling initiatives supported by a set of statistical tables and charts, photographs and case studies. It also showcases a range of studies that have been conducted in Doha and the UK between 2010 and 2015, focusing on the development of codes of practice and supporting mechanisms to convert the vast quantities of construction waste into high-value construction products. In addition, Qatar Standards has also updated the Qatar Construction Specification and now includes the move to permit the use of recycled aggregates in a range of applications--including structural concrete, non-structural concrete, concrete blocks, asphalt pavements, road subbase materials and fill applications. Despite this, the new set of specifications does not force clients and con-
tractors to use recycled aggregates, so the uptake will be determined largely by the cost. TRL is also keen to help those companies looking to make the move to recycled aggregates, offering independent audits to check the quality of the materials before Qatar Standards certification. Recently, another project in Qatar has been awarded to implement recycled aggregate in real construction projects. The new project will place key focus on the performance of recycled aggregate across a wide range of construction applications and monitor performance in practice. The project team assigned for this task will work with a wider group from the government and construction industry to provide sustainable aggregate. Results of this undertaking will be published and distributed to ensure that stakeholders are aware of recycled aggregates and have confidence in their use. construction business news me September 2016 63
SUPPLIER News
ALEC to adopt Aconex solutions on all projects
Dubai Parks and Resorts picks Siemens technology
S C
onstruction contractor ALEC will adopt Aconex solutions for managing information and processes across its entire project portfolio. The pair have a history of successful collaboration in the Middle East, beginning with the Shangri-La Qaryat Al Beri luxury hotel, apartments and villas in Abu Dhabi which completed in 2007. More recently ALEC used Aconex solutions during the construction of new concourses at Dubai International Airport (DBX). Maisam Zaidi, head of IT at ALEC, said the innovative use of technology is key to the firm’s strategy for growth and market leadership throughout the Middle East. “Our objective is to be the leading construction company in all of the areas in which we operate,” said Zaidi. “To accomplish that, we need to be
64 construction business news me October 2016
a leader in every aspect of our own operations. Technology plays a key role in the automation and standardisation of processes across our entire project portfolio. “Adopting Aconex – a secure, neutral, cloud-based enterprise solution – is an important part of our global strategy, driving change not just within ALEC, but across the entire construction and engineering industry.” Henry Jones, senior vice president, Europe, Middle East and Africa (EMEA) and global accounts at Aconex, said: “This enterprise agreement reflects the strength of our business with ALEC and its project partners over many years. We are pleased to cement our relationship with a tierone contractor that is driving innovation across its operations to successfully deliver complex and demanding construction projects.”
iemens will provide a building management system for Dubai Parks and Resorts, the Middle East‘s largest theme park destination, which opens this month. Desigo CC Building Management System (BMS) will control the day-to-day operation of buildings across the venue, making it the first implementation of the technology at a Middle East theme park. The system will allow centralised control and monitoring of key buildings across several sections of the theme park including Motiongate, Legoland and Legoland Water Park as well Lapita Hotel. It will optimise systems including heating, ventilation, air conditioning, lighting, fire alarms, water metering, room automation and energy management across multiple buildings. A 3D graphical interface will display the status of these different systems in real time, enabling operators to monitor and control the performance of buildings across the large site from a single location. Koen Bogers, Senior Executive Vice President, Building Technologies Division, Siemens Middle East, said: “This project required a building management system which puts the customer in full control of their building and safety tasks. We were able to customise the technology to allow fast access to key data across multiple sites and disciplines, optimising the operation and maintenance of an important new development.” Global installations of Desigo CC have enabled reductions in building operating costs of up to 20 percent, and versions of the technology have been installed in Abu Dhabi’s Sheikh Zayed Grand Mosque, Dubai’s 3D-printed ‘Office of the Future’ and the Atlantis Hotel on Palm Jumeirah.
Comansa CM launches new range of flat-top tower cranes
T
ower crane manufacturer Comansa CM has launched a new series of flat-top tower cranes. Four new models with maximum load capacity of 10 and 12 tonnes are already available for the market, while two more will be arriving by the end of the year. The new cranes from the Hangzhou factory are models 16CM185 10t, 16CM185 12t, 16CM220 10t and
16CM220 12t, all with maximum jib length of 65 metres. The cranes 16CM260 10t and 16CM260 12t will be launched soon and will come with jib length of 70 metres. All the cranes from the CM1600 Series feature flat-top design, frequency controlled mechanisms, different options of hoist speeds and the PowerLift system. This new CM1600 Series allows Co-
mansa CM to fill the gap between the CM1100 Series (with max. loads of 6 and 8 tonnes) and the CM2100 Series (up to 25 tonnnes of maximum load capacity). Andy Huang, sales manager, said: “Comansa CM’s range is now even more complete and allows us to be part of all types of projects, from small residential to large-scale industrial and infrastructures.”
Piping player RAKtherm plots expansion path
U
AE-based MEP supplier RAKtherm has revealed plans to increase its international footprint in response to growing global market demand for piping solutions. The three-pronged plan comprises capital expenditures, market dominance strategies, and product innovation which has resulted in a 34 percent increase in production capacity, said the firm said which already operates in 35 countries worldwide. Ali Hashim, Chairman of Hashim Group said: “The demand for high-tech, high performance piping solutions that conforms to the highest interna-
tional standards to support large-scale construction projects is immense. “We are preserving and expanding our market territories by developing the latest MEP technology solutions to meet plumbing challenges. Furthermore, in 2017 we
will be launching the new range of piping systems developed by RAKtherm” “Investments to the tune of $200mn in capital expenditures which we announced last year is for technology enhancement, equipment modernization, and for launching of the new innovative piping systems from RAKtherm,” he added. RAKtherm uses advanced German technology to deliver high-performance piping systems with a service life of 50 years to support major MEP projects across GCC, North and South Africa, South and East Asia and Europe.
construction business news me October 2016 65
Event Preview
Big 5 unveils new simplified layout The region’s biggest construction tradeshow takes place from November 21 to 24
T
his year’s Big 5 show in Dubai will have a brand new floor plan clustered in five product sectors, organiser dmg events Middle East, Asia & Africa has revealed. From Nov 21 to 24, the event is expected to attract 75,000 participants, hosting over 3,000 exhibitors across the entire Dubai World Trade Centre (DWTC) venue. Event Director Josine Heijmans is confident the new layout will facilitate business opportunities, while effectively responding to the current needs of all construction industry professionals. “One of the key reasons for our visitors to attend The Big 5 is to look for specific products, innovations and new technologies as well to network with new or existing business partners and industry peers,” Heijmans said. Although the event’s old layout already accommodated dedicated prod66 construction business news me October 2016
uct sectors, the majority of the international exhibitors were located in country pavilions. This, coupled with the expansion of The Big 5 over the years, made it more challenging for attendees to find the specific products or the companies they were looking for. The five product sectors in which exhibitors will be grouped this year are: Building Interiors & Finishes, MEP Services, Building Envelop & Special Construction, Construction Tools & Building Materials, and Smart Building & Design technologies. “These main sectors are further broken down into subsectors, so it will be really easy to navigate the exhibition halls and find the right exhibitors and products,” Heijmans said. “In addition, a new App, route planners, a search function on the website and staff onsite will further support visitors attending the show”. Beyond offering both visitors and
exhibitors a better experience, the new floor plan is studied to align with the construction industry’s current trends, as the introduction of the Smart Building & Design Technologies sector shows. Heijmans also promises a stronger focus on the theme of sustainability at The Big 5 this year. Visitors will be able to cast their vote for the show’s GAIA Awards, which since 2008 honour companies in the construction sector whose products and services demonstrate a reduction of construction’s impact on the environment. For the first time ever, the GAIA Awards’ judging panel will include these votes in their decision while selecting the final winner of 2016. In 2015, the Big 5, held in conjunction with PMV Live and Middle East Concrete, welcomed a record of over 73,000 visitors across 113,526 square meters space.
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October 17-20, 2016 Riyadh, Saudi Arabia For over 30 years, Saudi Build has been Saudi Arabia’s largest construction trade exhibition, attracting thousands of international manufacturers, exporters and businessmen, as well as tens of thousands of regional engineers, importers and industry professionals to connect and engage with the latest technology that the Kingdom’s largest sector has to offer.
Cityscape Kuwait
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October, 19-22, 2016 Bologna Exhibition Centre SAIE is an internationally renowned trade fair for the construction sector. The fair offers the possibility to see and compare the products of the industry´s leading companies. Moreover it as an innovation platform for the construction industry. Visitors can here in depth and comprehensive information on the latest developments, trends, services and products in various fields.
The Construction Summit
October 26, 2016 Dubai, TBC The Construction Summit, now in its second year, will be beneficial to those interested in the best practices of carrying out a successful project. The 2015 event gathered over 100 attendees that included government officials from RTA, DEWA, Dubai Municipality, TECOM as well as top-level management from the region’s best construction firms. The 68 construction business news me October 2016
summit is open to top-level managers and decision-makers from companies specialized in architecture, engineering, design, manufacturing, software, facilities management, etc.
PMV Live
November 21-24, 2016 Dubai World Trade Centre PMV Live is the most important heavy machinery event in the Middle East. The event connects professionals with leading global suppliers of high-quality heavy construction machinery, plant equipment, commercial and construction vehicles, consultants, precast machinery, and a range of other products and services.
Bauma China
November 22-25, 2016 Shanghai New International Expo Centre Bauma China, the International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles, takes place in Shanghai every two years and is Asia’s leading platform for experts in the sector.
Bauma Conexpo
December 12-15, 2016 Huda Ground, Gurgaon, Delhi BAUMA CONEXPO INDIA—the International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles—provides the construction industry in India with a professional platform for networking, investment and the exchange of ideas and information.
CONEXPO-CON/AGG 2017
March 7 – 11, 2017 Las Vegas, Nevada Where every major construction industry is represented amongst 2,500+ exhibitors over 2,500,000 square feet and more than 140 education sessions including asphalt, aggregates, concrete, earthmoving, lifting, mining, utilities and more.
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The Rise of Smart Cities How disruptive technologies are evolving the GCC real estate sector, says Orient Planet Research
T
he GCC real estate market has witnessed remarkable growth over the past years, with the sector remaining resilient despite the effects of oil price fluctuations. In the UAE alone, the local industry is expected to climb at a compound annual growth rate of 6.4 percent from 2015 to 2019. Despite the regional market’s strong performance and positive outlook, the tools of the trade have not evolved much to keep up with the technological innovations dominating the world over. The practice is nonetheless changing. According to a report titled ‘Disrupting Real Estate: The Impact of Technology and the Industry’s Future’ released by Orient Planet Research, the digital wave has touched even the regional real estate industry. The sector, the report notes, is now eagerly navigating its way through this digital transformation to optimise processes and achieve significant value increases. “As older systems and traditional ways of doing business become less efficient amidst today’s evolving markets, many real estate companies are now combining their expertise with available modern digital tools to get ahead of their competitors, increase their efficiency and productivity, and most importantly, enhance the experience of their clients,” says Nahla Nana, Research and Innovation Director of Orient Planet Research. “Such a crucial move is fundamental, especially for organisations who want to remain relevant in a technology-centric, highly connected world. It is also in sync with the UAE and the rest of the GCC region’s significant digital and ‘smart’ transformation efforts. It pays to be attuned with modern trends for regional organisations to become globally competitive and maintain their edge.” The report examines various significant disruptive technologies for the property industry over the next decade and why regional real estate firms must be agile and flexible enough in embrac-
70 construction business news me October 2016
ing these innovations. Beyond social media, the study specifically highlights technological trends that are automating brokerage, leasing tasks and activities as well as bringing down barriers between potential tenants and real estate owners. In particular, it examines how drones, artificial intelligence, the Internet of Things, virtual and augmented realities, 3D Printing, and blockchain processing are reshaping and reimagining the experience of both real estate brokers and investors. Augmented reality (AR), for example, is designed to alter one’s experience of an actual visual space. The report states that AR has been gaining more popularity in real estate marketing in recent years due to numerous factors, chief of which is promoting higher user engagement through visual interaction. A 3D creation of a property can be viewed using this technology, allowing users to check out various sections from different angles and not just the bits that a camera can capture. Given that mobile applications with AR are easily available on modern mobile devices, the report notes that this is also the easier way to reach potential property buyers with all the information about available apartments and houses on sale. Drones, on the other hand, make
manual, ground-level photography of a market property unnecessary. Real estate firms can also do away with using helicopters and other aircrafts to capture aerial views of their properties. According to the report, they can utilize drones to do all these tasks not just to make a sale but also to take a range of data across large areas of ground. Through data gathered by drones, firms can now more efficiently compute insurance and property prices by identifying risk factors such as flooding, subsidence, or landslides. “The rise of smart cities in the GCC is spurring all these significant technological developments,” adds Nana. “While the region is fast catching up with their use, much still needs to be done to maximise their potential. Aligned with the region’s vision for a technologydriven future and the sustainable smart city agenda of many of its states, our research offers a novel concept for residential and commercial real estate developers, among others, to use cutting-edge technologies to elevate client experiences and improve customer satisfaction. We are the first in the region to offer a study tackling the impact of the latest innovations that could eventually yield significantly higher returns on investment for the entire real estate sector.”
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