JANUARY 2018
THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS
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On the web Keep up to date with all the latest news, features and much more on our website. www.cbnme.com
// contents
January 2018 // Issue #35
8 Ed Note 12 News 24 Comment
Aurora’s Cian Farah talks about the benefits of an end-user driven market
26 Comment
RICS' Rob Jackson discusses the importance of bringing consistency to regional construction
28 Cover Story
Regional industry experts discuss the trends that will dominate the UAE market in 2018
www.cbnme.com
construction business news me // January 2018 //
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CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Diarmuid O'Malley dom@bncpublishing.net Group Sales Director Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706
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Editor Paromita Dey paromita@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Marketing Executive Mark Anthony Monzon mark@bncpublishing.net Photography Hayder Al-Zuhairi
32 Interview
ASU MD asserts a positive outlook for the MEP contractor in 2018, owing to its enviable project pipeline
36 Feature
Experts discuss and highlight the importance of fire safety regulations in the UAE in the aftermath of recent incidents
40 Event preview
A quick look at the upcoming Intersec 2018
62 Supplier News 64 Editor’s Pick 66 Diary
SUBSCRIBE subscriptions@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Construction Business News ME contact sales@bncpublishing.net T +971 55 339 5097 All rights reserved Š 2015. Opinions expressed are solely those of the contributors. Construction Business News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Construction Business News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Construction Business News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by UPP
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Inspiring Innovative Leadership
Leaders in Project Management
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// Editor's note
editor’s note
New year resolutions
Let me begin by wishing you a very Happy New Year. As the curtains came down on 2017, we all have been waiting to go into 2018 with bated breath. Not particularly challenging, but the year had its own set of ups and downs. But amidst this uncertainty, the GCC saw some big project launches, and the delivery and handover of some highprofile developments. The GCC's construction market has shown a 30% pick-up this year, with $130bn worth of completed projects recorded so far, according to new research. The new study by MENA Research Partners (MRP) said that completed projects increased from $100bn in 2016, despite headwinds that extended from oil price slump to budget adjustments in many GCC countries. The figures remain at par with an annual average of $135bn during the 2009-2014 period. With total GCC active projects at
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around $2.6tn – equivalent to 160% of GDP - the regional construction market presents "sufficient depth and opportunities for investors and regional market participants over the years to come". The research also showed that the UAE and Saudi Arabia account jointly for 70% of the value of active projects. As oil prices appear likely to continue to improve, and with government spending expected to pick up again, the stage is set for the infrastructure sector’s recovery. And with mega-events on the horizon, such as Expo 2020 in Dubai and the 2022 FIFA World Cup in Qatar, there is ample reason for members of the construction industry – and others – to feel optimistic. Of course, nothing is set in stone but, in years to come, we may well look back on 2017 as the year in which the saplings of recovery began to sprout in the GCC’s construction industry.
// construction business news me // January 2018
Paromita Dey Editor paromita@bncpublishing.net @paromitadey1 linkedin.com/in/paromita-dey
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Update
An update from around the region
For News, features and more, Visit www.CBNme.com Follow us on twitter for breaking news: @cbn_ME Follow us on Facebook for up-to-the-minute breaking news
Real Estate
Dar Al Arkan unveils AED800mn Dubai Canal tower Saudi Arabia-based developer, Dar Al Arkan, unveiled its plans to expand to global markets, with an AED800mn development on the Dubai Water Canal in the Business Bay area. The company has partnered with luxury brand, Roberto Cavalli, to design the interiors of the 34-storey waterfront skyscraper in true Italian fashion. Named as I Love Florence, the new luxury tower will offer its residents an immersive living experience that combines the sophistication of fascinating Florence with the famed luxury of dazzling Dubai. Yousef Bin Abdullah Al Shelash, chairman at Dar Al Arkan, commented: “Dar Al Arkan, since its establishment in 1994, has been offering Saudi investors unique investment opportunities that enhance and protect their wealth and preserve it for the next generation. Our solid track record in delivering 15,000 residential units and 500,000sqm of commercial space in Saudi Arabia for over 23 years will support our global expansion, which aims at presenting further diversification to our existing investors, as well as attracting international investors to our investment portfolio.” Towering over the 3.2km man-made waterway, the high-rise will combine views of the canal’s vibrant 12
outdoor and night scenes, with the elegance of the Florence’s Arno riverside, reflected in the interiors sketched by one of Italy’s most famed design houses. This is the first time ever that the Roberto Cavalli fashion brand lends its name to a real estate development, anywhere in the world, to present rich interiors that project bespoke living and are an embodiment of all the strength and glamour of the maison “Roberto Cavalli” lifestyle, delivering energy, prestige, emotion, success, and desire to experience. Gian Giacomo Ferraris commented: “We are excited to be entering for the first time as a group to the real estate sector with the Roberto Cavalli brand, and we believe that the developer couldn’t have chosen
// construction business news me // January 2018
a more suitable location for this project in the Middle East, where Roberto Cavalli enjoys a strong following. Dubai has carved its position as the house of fashion and design in the region. I see a strong correlation between Florence and Dubai, with both cities projecting elegance, art and design in everything they do, each in its own way. The new tower will embody Roberto Cavalli’s passion for beauty, design, and his celebration of Italian craftsmanship. It will encapsulate the high-end luxury our fashion house has been famed for.” The tower, which will have views of the Dubai Canal, will feature for the first time in Dubai New York style homes, with elevators opening directly into the apartments, providing utmost pri-
vacy. Units will be available in one-, two-, three-, and four-bedroom penthouses. Abdullah El Shelash concluded: “When we set out to draw our vision to become leaders in the global real estate development, we decided to only settle for the best, hence our choice of Dubai Canal as a location, and the epitome of Italian luxury, Roberto Cavalli, to conceptualise and create truly outstanding living spaces, not only in the residential units, but across the tower’s amenities, including the lobbies, gym, swimming pool, yoga area, outdoor training area, and hallways.” The tower architecture has been designed by VX Experts. Dar Al Arkan has also appointed La Casa Engineering Consultants. Construction will start in January 2018.
Legal
Pinsent Masons enter association with Saudi firm Sachin Kerur, head of Pinsent Masons ME
International law firm, Pinsent Masons, has entered an association with Saudi Arabian law firm, Alsabhan & Alajaji (SJ), to enhance its coverage across the Middle East. The association with SJ will complement Pinsent Masons’ existing regional presence, providing clients of both firms in Saudi Arabia with specialist on-the-ground expertise. This comes at an important time for the Kingdom as it embarks on transformational economic and infrastructure changes. Pinsent Masons and SJ have been working closely together for a number of years on Saudi, regional MENA, and international matters, most evident in the infrastructure, energy, and technology sectors. This aswww.cbnme.com
sociation will be a natural extension to the close relationship that the firms have enjoyed for some time. Sachin Kerur, head of Pinsent Masons in the Middle East, said: “Saudi Arabia is the largest construction, energy, and related technology market in the GCC. When you consider Vision 2030 and other projects and initiatives that are being planned or implemented in the Kingdom, it will be very apparent why this association is a key strategic development for us. We have worked closely with Naif and Ibrahim over a number of years and they understand and share our commitment to client delivery and sector focus.” Ibrahim Alajaji of Alsabhan & Alajaji law firm com-
mented: “Our close relationship with Pinsent Masons enables us to strengthen our response in the infrastructure, energy, real estate, and technology sectors. What really excites me is that we can offer businesses connected to Saudi with deep industry sector knowledge and experience that operates out of so many global locations as well as Saudi Arabia itself. We have been really impressed with Pinsent Masons’ commitment to the Middle East and its global reputation as an innovator in legal services.” Naif Alsabhan, Alsabhan & Alajaji law firm, added: “This association comes at a time where Saudi is executing its transformation plan under the 2030 vision. By merging
our local knowledge and the longstanding international experience of Pinsent Masons, this association will enable us to provide highquality services to international and national clients.” Richard Foley, senior partner at Pinsent Masons, said: “Our vision is to be recognised as an international market leader in the global sectors in which we operate. We have a long heritage in the Middle East having operated there for decades and established an office in the UAE in 2004. Formalising our relationship with SJ is the next step in our development in the region as it will enhance our offering to clients who operate in Saudi Arabia at such a dynamic time for the country.”
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// NEWS
Construction
Gemini begins construction of luxury Dubai tower Dubai-based real estate developer, Gemini Developers, broke ground and began construction of its 29-storey Symphony tower in Business Bay. The tower is the second in the series of high-end luxury residential projects planned by the developer, after 90% completion of their Splendor at MBR City project in Sobha Hartland community. Symphony project has a built-up area of 33,628sqm; the apartment units range from 40sqm to 269sqm. The G+29 tower will house 455 residential apartments that include studio, one, two, and three-bedroom flats. The residential project will be equipped with amenities like smart home technologies, gym, yoga lawn,
swimming pool, rooftop BBQ, jogging track, kid’s play area, retail stores, green open spaces, and concierge services for the residents. The ground-breaking ceremony marks the beginning of the construction of the project that is slated for completion in May 2020 – five months before the Expo 2020 begins on October 20. Sudhakar R Rao, managing
director of Gemini Property Developers, said: “Dubai’s upward market trend has given us enough reason to launch new projects. Due to the growth of the non-oil economy, Expo 2020, and other mega developments, we foresee the market to remain on this upward trajectory of sustained growth. “The UAE has emerged as one of the most vibrant,
cosmopolitan and progressive countries in the Middle East and there is very strong demand for value-for-money housing in many parts of the country. We are confident that due to UAE’s preference for high-quality living, our projects will be well received.” He continued: “This milestone project marks an important phase of our journey into the real estate industry and reinforces our position in the Dubai’s real estate market, which gave us a leverage to launch more such projects that are in-demand for both investors and end-users.” The developer has awarded the enabling works contract to National Piling and will be announcing the contract with the main contractor soon.
Utilities
ACWA Power-led consortium bags Salalah IWP project An ACWA Power-led consortium with Veolia and DIDIC has been awarded the Salalah Independent Water Project by the Oman Power and Water Procurement Company (OPWP). The plant will be located in Salalah, Dhofar region and will have a capacity to generate 25 million gallons per day of desalinated water using reverse osmosis technology. The project is being procured by OPWP under a build-own-operate framework on the back of a 20-year water purchase agreement (WPA). Dhofar Desalination Company, the project company, will be owned by ACWA Power, Veolia Middle East, 14
and Dhofar International Development & Investment Holding Co (DIDIC). Paddy Padmanathan, president and CEO of ACWA Power, said: “Water is the most vital commodity for human life as well as a necessity for all enterprises. We are delighted to have been awarded this project and the opportunity to continue supporting Oman as a reliable supplier of desalinated water and power.” The engineering, procurement, and construction (EPC) of the plant will be handled by a consortium of Fisia Italimpianti SpA and Abeinsa Infraestructuras Medioambiente S.A. The operations and maintenance of
// construction business news me // January 2018
the plant will be undertaken by a consortium of Veolia Middle East, NOMAC Oman, and Dhofar International Development (DIDIC). Thamer Al Sharhan, managing director at ACWA Power, said: “Oman is a strategic country for ACWA Power – our portfolio of six plants can generate over 4,300 MW of power and 42 million gallons
per day of desalinated water. ACWA Power is committed to ensuring the success of this project while creating real value for the local communities. As such, the project will play a key role in meeting the increasing demand for water in Oman, which is expected to be on an average, about 6% per annum over the next seven years.”
Government
Dubai Land Department, Q4 Consultants sign partnership agreement Dubai Land Department (DLD) has signed a strategic partnership agreement with Q4 Consultants for the Indian company to act as a ‘Real Estate Promotion Trustee’, supporting DLD in its mission to consolidate Dubai’s position as the world’s premier real estate destination for innovation, confidence, and happiness. The agreement was signed by HE Sultan Butti bin Mejren, director general of DLD, and Deepak Batra on behalf of Q4 Consultants. The company will also promote attractive investment opportunities that can be enjoyed by Indian investors in Dubai’s real estate market. Mejren commented: “We place a high priority on the Indian market, especially as the Indian investors occupy a leading position among the top three nationalities investing in Dubai each year. India has huge numbers of investors looking for international investment opportunities, and Dubai is certainly able to answer this demand with its diverse investment options and attractive real estate environment.” Her Excellency Majida Ali Rashid, assistant director general and head of the Real Estate Investment Management and Promotion Centre, the investment arm of DLD, said: “This agreement demonstrates our keenness to strengthen cooperation between a select group of real estate promotion professionals in www.cbnme.com
a number of countries in order to attract local and foreign investors to Dubai. We are confident that our agreement with Q4 Consultants will help us achieve these goals.” Deepak Batra from Q4 Consultants added: “We thank DLD for placing its trust in us as its Real Estate Promotion Trustee in India. We will promote Dubai’s real estate investment opportunities while also helping Indian investors to learn about the relevant laws and regulations, and assisting them by using the language they prefer to communicate in. As a result, they will become familiar with Dubai’s investment climate, how it
works, and the attractive opportunities it offers. We look forward to creating a platform where Indian real estate investors feel welcome, safe, and protected.” Indian nationals are among the highest investors in Dubai’s real estate market. Figures issued from DLD’s Real Estate Studies and Research Department show that the total value of Indian transactions from the beginning of January 2017 to the end of November this year reached AED20.94bn, from 7,810 investments carried out by 6,150 investors, while the value of Indian investments reached AED14.18bn. A total of 1,295 Indian brokers are employed in Dubai’s real
estate market, and over the same report period, they earned commissions of AED226mn for 2% of the sales they made. The new agreement will enhance real estate promotion in India and encourage greater investment from Indian investors. Q4 Consultants will provide real estate promotion services in India, including customer inquiry services, to attract investment and introduce investors to DLD’s services. The company will also support DLD by participating in real estate promotion exhibitions and workshops organised by the department and its partners in different areas of India.
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// NEWS
Aldar to release more Water’s Edge homes Abu Dhabi-listed developer, Aldar Properties, announced that due to strong demand it will release more apartments for sale in Water’s Edge, the waterfront development on Yas Island. According to a company statement, demand has soared for the waterfront homes, with the units launched to date already sold out. The new release will comprise studios to three-bedroom apartments, with prices starting from AED500,000 and Escrow accounts with Union National Bank utilised for all purchases. Talal Al Dhiyebi, chief executive officer, Aldar Properties, said: “The appetite for waterfront homes on Yas Island continues to exceed expectations. When we release new units, they sell out in a matter of days. We are making every effort to cater to this demand.”
Located on Yas Island’s Eastern shores, Water’s Edge offers the complete outdoor lifestyle with pedestrian access to all amenities including a waterfront promenade with multiple dining and retail options. It also features private courtyards with spacious landscaped areas, pools, multipurpose courts, and a mosque. Water’s Edge residents will benefit from the abundant attractions that make Yas Island the most exciting destination in Abu Dhabi. The development lies adjacent to the upcoming Sea World theme park, and a five-minute walk from Yas Mall, Ferrari World, and the Yas Marina Circuit. Water’s Edge is scheduled to begin phased handovers between June and December 2020.
Retail
Seven Tides launches Anantara Residences Sky Collection UAE-headquartered developer, Seven Tides, unveiled the Anantara Residences Sky Collection - fully furnished luxury studio apartments form part of the five-star Anantara The Palm Dubai Resort on the eastern crescent of Palm Jumeirah. Abdulla Bin Sulayem, CEO of Seven Tides International, said: “This is a great opportunity to own a luxury freehold property on Dubai’s Palm Jumeirah, which continues to be one of the most sought-after locations in the emirate. Our Anantara Residences Sky Collection will appeal to a wide range of home buyers and investors, for whom prestige, quality and a strong return on investment (ROI), are prerequisites to purchase.” The payment plan for the studios, which are priced at AED1.2mn, includes 10% upon reservation agreement; 40% upon sales and purchase agreement; and the final 50% upon completion in July 2018. Further, one- and two-bedroom apartments are located on the lower floors of the buildings and are completed and ready to move in. These are priced AED2.7mn for one-bedroom 16
apartments, ranging from 108sqm to 141.5sqm; and AED3.9mn for twobedroom apartments, from 164sqm to 191sqm. For these, there is a 10% payment upon reservation agreement and the remaining 90% upon sales and purchase agreement. Apartment sizes range between 51sqm to 59sqm for a studio and are sold with high-end fittings and finishes. They come fitted as standard with luxury furniture, fitted kitchens, rain showers and floor-to-ceiling windows. In addition to access to the Anantara
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The Palm Dubai Resorts’ private beach and the 10,000sqm temperature-controlled swimming pools, residents can use the wide variety of leisure facilities, including the fully equipped gym, tennis courts, and children’s play areas. They also have access to any of the resort’s top-class restaurants and the Anantara Spa. Bin Sulayem added: “Our Anantara Residences Sky Collection offers an unparalleled lifestyle of luxury with stunning views over the resort’s lagoons, across Palm Jumeirah and the Dubai skyline.”
MEP
Turkey’s AE Arma wins Dubai hotel MEP contract
// Bitesize news
Fit-out specialist ISG announced the appointment of Dima Qumsieh as its new business development director.
Cluttons has been appointed by KAR Properties, to handle all aspects of property and FM, in addition to offering leasing services, for Busaiteen Views in Bahrain.
Turkish engineering and contracting firm, AE Arma-Elektropanç, won a mechanical, electrical, and plumbing (MEP) works contract from Gunal Construction for a luxury hospitality project in Dubai. On completion, the $52mn Wow Hotel and Hotel Apartments project will stand tall at 336m on the Business Bay, featuring 80 floors. The luxury development will house 946 units with views of Burj Khalifa, hotel suites, and rental apartments. The hotel suites, restaurants, pools, and apartments are located on the 58th and 74th floors, the highest section of the hotel, with views, said the statement from AE Arma-Elektropanç. www.cbnme.com
An eco-friendly tower with a 184,778sqm construction area, Wow Hotel and Hotel Apartments, will be focusing on smart housing solutions and aims to install low and medium high-voltage systems, and generator systems besides key lighting and intelligent building automation systems. The other key facilities include climate control, fire detection, fire protection, and extinguishing systems. Work began on the project in October 2017 and is due for completion by the end of 2019, said a statement from the Turkish group. The scope of work includes construction of a hotel apartments building compris-
ing five basement levels, a ground floor, 10 car parks, three mechanical floors, 68 additional floors, and a roof. Wow Hotel and Hotel Apartments will be one of the most important accommodation and entertainment centers in the region, said a top official. Burak Ç. Kızılhan, the chief executive of AE Arma-Elektropanç, said: “By taking part in major projects such as Wow Hotel and Hotel Apartments, we are trying to represent our country in the best possible way in the global arena. This will be one of the most prestigious and big Turkish establishments in the region when completed.”
Damac Properties announced the launch of Sahara Villas within an international golf community in the heart of Dubailand, Akoya Oxygen.
Dubai based contractor, ALEC, and consultancy firm, WSP, collaborated for the next in their series 'joint graduate and early career professional' initiative.
construction business news me // January 2018 //
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// NEWS
// Snapshot
Abu Dhabi’s new shopping destination, Reem Mall, announced a new partnership with Azadea Group, to bring 11 brands to the mall, totalling an area coverage of more than 4,200sqm.
Hospitality
Basma, ARADA partner with Minor for Anantara Sharjah Resort Basma Group and ARADA have signed a management agreement with luxury hospitality group, Minor Hotels, to launch the Anantara Sharjah Resort. Scheduled to open in mid-2020, the 233-key Anantara Sharjah Resort will be located on a prime beachfront location in Sharjah, approximately 15 minutes’ drive from Sharjah International Airport. The Anantara Sharjah Resort will offer a selection of accommodation options including deluxe rooms and luxury suites. Facilities will include multiple dining options with a specialty restaurant located on a pier, a male and female spa and wellness centre, a kids’ club, a swimming pool, and a ballroom able to accommodate up to 540 guests for a banquet. The Anantara Sharjah Resort is coowned by Basma Group and ARADA, with the latter playing a developer management role in the delivery of the property. Both companies are headquartered in Sharjah, under the chairmanship of HE Sheikh Sultan bin Ahmed Al Qasimi. HE Sheikh Sultan bin Ahmed Al Qasimi, 18
chairman of Basma Group and chairman of ARADA, said: “Anantara is one of the world’s most prestigious luxury hotel brands, and this new property marks yet another hospitality milestone for Sharjah. We’re looking forward to launching the Anantara Sharjah Resort in 2020, and delivering on our commitment to providing exceptional new destinations to the residents of Sharjah, as well as tourists to our fast-growing emirate.” William E. Heinecke, founder, chairman, and CEO of Minor International
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PCL, said: “We are delighted to be partnering with Basma Group and ARADA to bring our luxury Anantara brand to Sharjah. There is a huge opportunity within the luxury segment in this fastgrowing destination and we are confident that Anantara will be well received within the market.” Dillip Rajakarier, CEO Minor Hotels, commented: “Anantara is very well established in the Middle East market and adding a resort in Sharjah is a great opportunity to further extend the brand in the region and reach new markets. We look forward to working with Basma Group and ARADA to bring the new resort to market and to ensuring its success as one of the leading hotels in the emirate.” Minor Hotels currently operates 13 properties in the Middle East across four of its brands – Anantara, AVANI, Tivoli, and Oaks – and has a further strong pipeline in the region across these four brands. In total, the company currently operates 39 properties in 12 countries around the world.
Image by: Xavier Gillet, used under Flickr Creative Commons 2.0 License
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// Event
Exhibition
Intermat 2018 expands with four new theme villages
With the aim of addressing the challenges raised by the digitalisation of the building and public works industry, and to propose a wider range of solutions, Intermat 2018 has chosen to shine the spotlight on new technologies developed by companies. For the very first time, start-ups, small and medium enterprises (SMEs), and larger firms will present their new solutions and products on four dedicated spaces: Construction Tech 100% Start Up Village, Smart 20
Road Village, Building Smart Village, and Demolition and Recycling Village. A series of talks and roundtables on the market’s topical subjects will also be on the agenda of each theme zone to encourage exchange and sharing between professionals. In each zone, lectures and talks will be given on topical subjects, offering a platform for exchange and information sharing between professionals. Intermat 2018 has revisited its sector organisation to fulfil its exhibitors and visitors
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wishes for a clearer presentation of the industry's equipment, solutions and techniques, a more efficient visit, and a spotlight on the sector's latest innovation. Isabelle Alfano, director at Intermat, said: “The construction and infrastructure sector is a key contributing factor to the development of regions and their appeals as regards to mobility, housing, energy, and employment. In view of the profound economic, social, and environmental changes currently happening, Intermat ac-
companies industry players in this transformation with new high-added value tools and content. “The mission of Intermat 2018 is thus to provide all construction professionals with a mix of ingredients to enhance their efficiency together with sources of innovation and inspiration to accomplish the projects of the future. This edition features an exhaustive programme specifically designed to identify the major construction projects in the EMEA region.”
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// Event review
50 years of success
U
AE-based construction equipment conglomerate, GENAVCO, celebrated its 50th anniversary in a glitzy evening at the Jumeirah Beach Hotel. A spectacular event filled with breathtaking shows and entertainment, reflects on the history of one of the leading companies in the UAE for supplying commercial vehicles, road construction equipment, material handling equipment, lubricants, and many more industrial and construction equipment representing the world's leading brands. GENAVCO is a part of the renowned Juma Al Majid Group of companies.
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// construction business news me // January 2018
Asif Sayeed Khan, GM, Plant and Equipment
www.cbnme.com
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// Op-Ed
Custom-made in the UAE Cian Farah, CEO for Aurora Real Estate Development, talks about the benefits of an enduser market over an investment driven market
D
emand in the UAE real estate sector is increasingly shifting towards end-users rather than being driven by the investment community, which has dominated the sector for so long. As a real estate development company operating in the UAE since 2005, Aurora Real Estate Development has witnessed this shift gradually taking place and foresees the growth in this segment to continue in the future. I believe that this shift has had an extremely positive impact on the market and will continue to do so for the foreseeable future. Previously, investors dominated the market, with hardly any end-users. This resulted in the property market effectively turning into a stock market where buyers had little regard for efficiently designed spaces, finishes, and energy saving proposals. Yields were strong due to the large percentage of the population that was renting, however, the strong yield coupled with the excessive speculation eventually resulted in a large downturn. Historically, the UAE has seen expats renting property for a variety of reasons. Firstly, the down payment required to purchase property was simply out of reach. Secondly, the mortgage market was not as established as it is today, and the interest rates were very high. Thirdly, expats previously saw the UAE as a short-term placement rather than a long-term base. However, the market has now matured, and as a result those expats that remain have been increasingly attracted to purchase property rather than renting, due to more attractive and affordable payment plans, lower mortgage rates, improvement in the regulation, and the perception that the UAE will be their home for life. 24
Anything that makes a market more difficult to operate in is ultimately a good thing, as it drives efficiency and best practice.� The global economic downturn resulted in the UAE being hit particularly hard, especially in the real estate sector, which has thankfully experienced a gradual recovery. A slowdown in the economy typically sees a divide emerge between those companies with a strong reputation in the market and those who have lost their customers trust. As the market matures, it becomes increasingly important for companies to maintain
// construction business news me // January 2018
a strong reputation as the landscape becomes more competitive and the opportunities less prevalent. In the property market, buyers are also scrutinising contracts and finishes more so than before and seeking an increased personalised service and customisation associated with their property, in addition to a greater focus on affordability. Anything that makes a market more difficult to operate in is ultimately a good thing, as it drives efficiency and best practice. This is why Aurora Real Estate Development has been so successful in this market and continues to grow exponentially. Aurora is a boutique private investor and property developer in the UAE with a robust culture and ethos of quality, transparency, and attention to detail. The company was established to address a need in the market for efficiently designed contemporary spaces in the residential property market. To date, Aurora has delivered 46,451sqm of primarily residential developments over five projects and currently holds more than 65,032sqm of new developments in the pipeline. As part of the larger ECC Group of companies, Aurora is able to offer a higher level of control on quality and more integration in the construction process, minimising disputes and maximising efficiency, speed and deliverability. In addition, Aurora offers a personalised tailored service and delivers creative new concepts at an affordable price. The company has gradually progressed in the market due to a business model that focuses on the buyer’s needs and requirements, creativity, and deliverability. Hyati Residence: a case study The shift in attention towards end-user needs is perhaps best demonstrated in
Aurora’s 24,619sqm Hyati Residence project, located at Jumeirah Village Circle, Dubai. The newly completed Hyati Residence I & II consist of 20 townhouses, covering two plots (2,371sqm and 2,449sqm respectively), with each four-bedroom townhouse, consisting of a built-up area of 288sqm and spread over G+2 floors. The success of this particular project was the result of a clear vision to develop a project with the end-user in mind. It was important for the project to stand out as a milestone in the company’s journey and therefore an extensive amount of time and effort was spent on the space layout and the selection of materials, to ensure efficiently designed spaces were achieved with high-quality finishes, even if these had to be sourced internationally. For example, all the internal lights have been sourced through Fagerhult whose products are designed in Sweden. The veneers for the kitchen cabinets, the bathroom vanities and the wardrobes were transported from Spain, all the floor tiles in the units and corridors were imported from Turkey, and tiles for the reception and lift lobbies from Italy. Further, standout features in Hyati Residence include a creative steel and wood www.cbnme.com
staircase design, low-level LED lighting in the bathrooms, the lap pools in the townhouses, large water features in the central area of the apartments, and a double height reception with a polished concrete wall behind the reception desk. These design features and many others rarely seen in the UAE ensure Hyati Residence stands out from the crowd and meets the needs of buyers. Hyati Residence was also created to address the end-users need for quality housing at an affordable price. To that end, Aurora has already sold 17 out of 20 Hyati townhouse units and has received a fantastic response from its buyers who have now moved into their homes. Looking ahead to the long-term future of real estate development in the UAE and throughout the region, Aurora sees great potential for new business in this sector. The UAE and Dubai, in particular, remains a highly desirable destination and the population appears to continue growing in the future. All residents require accommodation, and with the ever-increasing expectations of buyers, the responsibility lies with the developer to supply the new housing demand.
Looking to the future: 2018 and beyond Over a number of years, Aurora has been witnessing the UAE property development industry cultivate a keen interest in adopting new technologies in order to deliver creative concepts to the end-user market and enhance the efficiency of the design and construction process. The extent to which new technologies will impact the sector in the coming years should not be underestimated by property developers. It is important for property developers to embrace the Building Information Modelling (BIM) transformation. This will enable designers to collaborate easily and deliver more efficient designs, while minimising clashes on site. It will also help facilities management companies better monitor buildings once completed and ensure the building remains in good condition. Developers must also explore sustainability measures, which will improve the energy requirements of the building, in turn reducing costs and increasing the demand for the building. This is a market trend that will continue to grow at pace – especially in a country such as the UAE where ambitious projects are the norm. The benefits of these tech-driven advancements from a developer’s perspective are diverse, including increased productivity, decreased construction costs, reduced wastage, enhanced safety, and improved sustainability, to name a few. From the end-user stand-point, technology has the capability to add value across every aspect of the final product. Aurora strongly believes that by adopting such technologies, companies in the region are able to eliminate many of the problems that have been troubling the sector for many years. As part of our philosophy, Aurora is embracing this technological revolution, and will continue to be meticulous in its aim to enrich the emirate by providing personalised projects of exceptional value, while exceeding the unique requirements of its clients and stakeholders.
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// Op-Ed
Setting standards Rob Jackson, RICS regional director, highlights the importance of bringing consistency to the regional construction industry
For governments, a standard like ICMS, provides them with the option for like-for-like comparisons, enabling practitioners to provide better cost projects to their clients.”
I
nconsistency and lack of clarity, when trying to compare and benchmark the costs of one project to another, is a huge global problem and more so here in the Middle East and North Africa (MENA) region. With a melting pot of nationalities, working practices, and multitude of standards being used by professionals in the industry, the challenge of ensuring a consistent method of cost measurement continues to be an issue many contractors, consultants, developers, governments, and investors face on a day-to-day basis. Until now, organisations have been able to collect, collate, and analyse 26
their own cost data but not compare externally. To change this, a group of professional and not-for-profit organisations established a coalition that developed and launched the International Construction Measurement Standards (ICMS) standard in 2017. As a universal system that crosses borders, it reduces inconsistency in presenting construction costs and enhances investor confidence, and ICMS is key for the transparency, productivity improvements, and overall growth of the construction industry. A number of commercial organisations, governments, and academic bodies formally announced their support for the standard by registering as ICMS ‘Partners’. Turner & Townsend, Faithful+Gould, EY, and Arcadis are some of the early global adopters. Since its launch, ICMS has also acquired regional supporters such as the Government of Ajman and other government entities in the region. The regional significance of this standard is immense, with more than 12,000 buildings and infrastructure assets under construction worth $448bn and a further 204 megaprojects worth
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$297bn underway. Among these are projects in the pipeline for UAE’s Expo 2020 and Saudi Arabia’s Vision 2030. A report by McKinsey Global Institute, Reinventing Construction: A route to higher productivity, detailed how poorly and slowly the construction sector has grown in terms of productivity compared to other industries. The report highlighted that the introduction of ICMS will drive consistency and transparency in the market by helping to ‘clarify the costs of projects and make performance management and holding to account easier’. Stakeholder perspectives Speaking to key industry leaders, it was apparent that ICMS as the new uniform benchmark for cost-reporting was considered a welcome move. Sinimol Noushad FRICS, a member of the ICMS standard setting committee and CEO of Dezire Project Consultants, believes the Middle East construction industry lacks a uniform benchmark for cost-reporting. She added that the property measurements and construction costs are reported in an ad hoc manner and vary from project to
project, and company to company, depending on the practice adopted in their native HQ countries. James Irvine MRICS, country manager at Currie & Brown, stated that “with globalisation, the challenges of a lower oil price, and the introduction of PPP in the region, the importance of ensuring a transparent and consistent approach to project costs is heightened. Introducing ICMS will have a significant impact on the construction market in this region.” Steven Batchelor FRICS, operations director at Faithful+Gould, remarked that ICMS will sit on top of, and be supported by various rules of measurement used to calculate hard construction costs when issuing design and/ or construction cost reports to clients. He further added that this target of consistent reporting will ultimately give transparency for financing and benchmarking international projects, which can only be a good thing for construction professionals. Industry gains By adopting ICMS, projects will benefit from the benchmarking of construction costs consistently and transparently, identifying causes of differences in costs between projects and allowing the project teams to be able to use the data with confidence for construction financing and investment, decisionmaking, and related purposes. With an increasing number of construction and infrastructure projects in the region, government spending has also increased. For governments, a standard like ICMS, provides them with the option for like-for-like comparisons, enabling practitioners to provide better cost projects to their clients. It also allows assessments of value for money, making it easier to comprehend and compare project costs, giving professionals greater budget control. With news of Dubai Government increasing the infrastructure and construction budget by 43% to support Expo 2020 and other strategic projects around the region, a standard such as ICMS can provide significant benefit for Dubai, www.cbnme.com
and the rest of the region. At a recent seminar, hosted by RICS to introduce ICMS to the regional market, Mohamad Al Dah, technical affairs director at Dubai Land Department, stated that currently more than one method exists for measuring things, and each firm brings its own standards. Through ICMS, a common denominator to all these standards can be concluded that will go beyond and above all others. It will also help with disputes, especially with developers who have multiple portfolios in different countries. By using this standard, projects can be delivered more efficiently. Investor confidence is paramount, at the moment, for GCC markets, and via ICMS, financial rigour can be added to construction projects that will enable better investment security to international lenders or multilateral development backers. Through this standard, improved cost projections can be provided to clients, helping developers avoid time and cost coverages, as well as under-investment in projects. Moath Maqbol, the GIS manager at Aldar, affirmed that “the impact of having simplicity in coding will be great and ICMS will also make it easier and useful to present values to clients”. Common and transparent data, provided through ICMS, will improve the dialogue between investors and developers, as Maqbol acknowledged, that they let consultants do
the cost coding and each consultant has a different way of doing it, bringing inconsistency. Adopting the standard Moving away from traditional measurement practices can be difficult for practitioners. According to Dah, educating the end users is one of the most prominent challenges, “we need to create awareness and educate them on the benefits and implementation of ICMS. The change has to be market driven”. To support the implementation of ICMS, RICS has developed various tools to help industry professionals. The recently launched, ICMS Explained: A user guide for the International Construction Measurement Standards, supports the financial management of construction projects that can be applied to any market in the world. It allows practitioners and service providers to capitalise on the technical innovation of an internationally-developed standard and scope out the fee-earning potential of data comparisons and cost analysis. With the increase of construction and infrastructure projects in the region, a globally recognised standard such as ICMS will revolutionise how the projects are reported and managed. Professionals using ICMS will be able to compare construction costs across a client portfolio or with similar projects in the region.
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The Trendsetters CBNME talks to five leading industry players to gauge the sentiments, whether positive or negative, for the construction and real estate sectors in 2018
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n the GCC, the reducing volume of project awards has been a major issue affecting the regional construction industry, but it is not the only one. A market outlook study by Deloitte states that due to the lower number of projects and tightened budgets generally, there is an increased
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level of competition across the industry to secure those few contracts that are still being awarded, and this has translated into downward pricing pressure, i.e. reduced margins when preparing project budgets or estimates. The past year certainly presented positive macroeconomic drivers for construc-
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tion that include population growth, diversified economic growth, a growing labour force, and mega events such as Vision 2030 and Expo 2020, in addition to a strong tourism drive. But will 2018 represent an improvement over 2017? Five top industry leaders present their views about the same:
Abdulrahman Khansaheb, managing director, Khansaheb Strategies for 2018 We intend to continue investing in our home market, the UAE, as well as steadily expanding our footprint across the region. Khansaheb Industries has a steady pipeline of projects and we will continue to approach both end-users and consultants to strengthen the business through more regional orders. We seek to grow organically and one of the ways in which we will do this is by expanding our manufacturing capabilities. Hence, we are opening a new facility in Jebel Ali’s Technopark in Q1 2018, which will increase our light manufacturing capacity for products such as non-metallic air ducts. Focus trend Supply will be a critical factor determining value of property in the region, both residential and commercial. With more units set to be introduced in 2018 on the back of increased construction activity ahead of Expo 2020, this would pressurise real estate prices. Yet, prime locations in Dubai still offer attractive yields to investors and demand for units within these areas has remained stable. Levels of demand will also be influenced by other factors such as employment growth, business conditions and oil price volatility, as both play a role in determining in investor sentiment when putting cash into the real estate market. It is highly unlikely that we will see any inflation in house prices, given the current liquidity challenges in the market. It seems as though, overall, the market will continue to bottom out in 2018. Past year performance 2017 was a very positive year for us with a consistent flow of projects, through which we were able to grow our business. We are confident that 2018 will be an even better year because of our expansion as well as the new products we will introduce in the market. In 2017, we acquired an exclusive license to manufacture Spiralite in the UAE. This will be a critical HVAC component for domestic, commercial, and industrial buildings in order to meet sustainable targets, as it is an energy efficient ductwork system which can offer significant energy savings of up to 58%.
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Jyotsna Hegde, president, Sobha Group
Strategies for 2018 We do have some plans for a masterplan project catering to the mid-end segment. The project will not be in our flagship Sobha Hartland; it’ll be another location. We’re in talks, and at some point, we’ll finalise. But we’re not yet ready to make an official announcement. There’s something in the pipeline, but we don’t want to disclose things unless everything is confirmed. Focus trend The general market is on an upswing; things are changing for the better. We’ve seen that 2017 has been definitely better than 2016; the second half has been extremely encouraging. The whole response from the market has been very exciting in the last few months. Dubai is one of the best places in the world for people to live in, and to invest in. Demand for quality real estate is definitely going up and contrary to what the market has been talking about, supply is not enough. There’s only so much being built. The next 10 years are going to be a very important time for Dubai’s economy, especially real estate. Past year performance 2017 has been an exciting year for us. We’ve launched a number of new projects as well. We’ve got the new Gardenia villas, and launched two new buildings keeping in line with the market demands. We had a good year because the construction has been going well; our project and infrastructure is fully funded, and everything is in place. We’re able to progress with the construction full speed.
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// Cover Story
Farhad Azizi, CEO, Azizi Developments
Strategies for 2018 Azizi Developments will remain construction-focused in 2018 and the first six months will see increased project deliveries and launches of new projects in prime locations in the emirate. We will also be consolidating on the success of our two key projects in 2017 - Azizi Riviera in Meydan One and Azizi Victoria in Mohammed bin Rashid City District 7 and focusing on their expansion, with first deliveries expected by the end of 2018 for Azizi Riviera. 2018 focus will also be on diversity in our developments, that will have Azizi expand on its recent multiple launches of lifestyle communities such as Azizi Riviera and Azizi Victoria. Focus trend The regional real estate sector will continue to show resilience despite market pressures and we expect to see healthy demand in 2018, along with a surge in off-plan projects in some countries in the region, like the UAE. We will also see a demand for premium real estate with good return on investment (ROI) in some markets. To respond to this demand, developers will remain focused on delivering projects in prime loca-
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// construction business news me // January 2018
tions with competitive payment plans. Overall, we also expect to see more regulations introduced that will benefit the real estate sector and encourage even more people to consider buying versus renting a home. Past year performance We witnessed peaked demand from GCC investors and individual buyers in 2017 and conceptualised and developed unique projects across the city to drive this demand, including our two mega projects – Azizi Riviera in Meydan One and Azizi Victoria in Mohammed bin Rashid City District 7. Azizi expanded its strategy in 2017 and began offering a 360˚ diversified lifestyle experience from residential clusters to mega urban developments, to buyers and investors. Our projects are located around the finest shopping malls, education facilities, recreational centres, and healthcare amenities. Commencing the year, from 20 projects we have concluded 2017, with more than 100 projects in various stages of development with a total portfolio of over AED20bn. Furthermore, we are very proud to say that we have witnessed year-on-year sales growth of 200% across our properties in Dubai.
Craig Plumb, head of research MENA, JLL
Focus trend Real estate markets are influenced by a mix of local and regional issues. While individual sectors are at different positions on their cycle in different cities across the region, the introduction of value-added tax (VAT) is a common factor that will influence all sectors in the UAE and Saudi Arabia in 2018. VAT is a key strategy in the plans of these countries to raise additional government revenue and help diversify their economies away from their current dependence upon the oil sector. While VAT is basically a ‘pass through’ tax paid by the end purchaser of a product or end consumer of a service, it will have a significant impact upon the real estate industry in 2018. The most immediate effects will include uncertainty and delays in invoicing and receipt of payments, that will negatively impact cash flows in all sectors of the economy. The long-term impacts of VAT are likely to include a reduction in profit margins for those contractors, developers, and owners who are not able to pass on the full impact of the 5% increase in their costs. As residential rents are exempted from VAT in both KSA and the UAE (with the sale of new residential supply zero rated in the UAE), VAT is likely to result in a shift of attention from the commercial to the residential sector of the market.
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Simon Townsend, head of valuations, advisory and consulting, CBRE Middle east Focus trend While e-commerce is still at the nascent stage of development in the wider Middle East region, it is clear that this trend will impact the regional real estate landscape. In the wake of online shopping, major structural changes will be required to help elevate the infrastructure and service delivery within bricks and mortar stores. This will also drive a wave of development in the industrial and logistics sphere, with new distribution facilities being developed around major transportation nodes to ensure faster delivery times, such as the Sheikh Maktoum International Airport (Dubai South), where IKEA’s new warehouse has already been delivered. In terms of the mall design, an increase in on-location storage facilities and new click and collect areas will also likely be required to be able to accommodate rising sales from online platforms. As a result, the traditional store may start to take on a slightly different role, which could bring rise to an increase in the number of concept stores, and other new ways for retailers to connect with customers and elevate the retail experience. This trend is increasing the demand for high-performance logistic hubs, which is providing a further investment catalyst with international operators considering build to suit or sale and leasebacks across the region.
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// Interview
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Game
Top of his
Ashraf Samy Botros from Al Shafar United (ASU) talks about the company’s outlook for 2018 and the impressive projects in the pipeline
Al Shafar United (ASU) had a very successful year in 2017, laying its hands on some of the most prestigious projects in Dubai, according to its managing director Ashraf Samy Botros. Al Shafar United for electro-mechanical engineering is an ISO 9001-2015. ISO 14001:2015, OHSAS 18001:2007 certified electro-mechanical flagship company of Al Shafar Group. It was established as an electro-mechanical department in Al Shafar General Contracting in 1989, taking part in development projects being carried out in Dubai. In 2007, ASU was launched as an independent electromechanical LLC under the umbrella of ASGC, charged to look after electromechanical contracts. Botros tells CBNME: “The year 2017 was very good for us. We are a successful and reputed MEP company in Dubai currently. We are working on www.cbnme.com
We are working on some of the most important projects in Dubai like the refurbishment of Dubai International Terminal 1 and the Dubai Mall Downtown extension” some of the most important projects in the emirate like the refurbishment of Dubai International Terminal 1 and the Dubai Mall Downtown extension. We have good jobs in here and are doing well.” The company started working on Emaar Properties’ Dubai Mall Down-
town expansion in February 2017 and has so far completed around 30% of the entire works. Botros states: “The total amount of the job is AED227mn and we aim to finish the work by August 2018.” ASU started to work on the refurbishment works for halls C and D at Dubai International Terminal 1 in October 2016 and Botros points out that “we will finish the AED326mn job in November 2018”. The contractor will be eyeing some more important projects in Dubai. Botros remarks: “We are looking for Phase 3 of Dubai Metro. We have submitted tenders and we are among the five shortlisted contractors. Every decision is in the process now.” He also stresses on the fact that most of the company’s portfolio of projects lies in Dubai but the MEP contractor
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has some vested interests in Egypt as well. The contractor is working on residential projects by Emaar Egypt, including villas and buildings. Tech focus ASU has implemented a building information modelling (BIM) technology in its technical office in 2014, which is responsible for the technical requirements of its projects, consisting of highly-skilled engineers to reach the desired projects delivery, ensure the completion of projects effectively and efficiently, and reduce cost and time while maintaining high standards. Botros mentions: “ASU BIM team has been trained to use the most common BIM software in the construction industry (Autodesk Revit and Bentley AECOsim). The selected team members were trained by BRE academy on the implementation of BIM level 2 as per the BS1192 and PAS1192-2 standards. We realise the importance of being up to date with the current technologies. Therefore, we focus on developing our own solutions and invest in new technologies.” Some of the technologies include Revit addons written in C# and VBA to increase the efficiency of the production of shop drawings from Autodesk Revit and Bentley Aecosim. ASU has also developed its own software, addons augmented reality (AR), for both Revit and AECOsim to increase the efficiency of the production of its models and drawings. Botros continues: “We understand the importance of applying the latest technologies available in the market, therefore we have been investigating the potential use of AR technology and have invested in Trimble TX6 3D laser scanner, which is being used to produce accurate and coordinated BIM models during renovation and expansion projects and as-built models during the handover stage." Future outlook Since its inception, Botros says that the vision of the company has always been to stress on high quality, handing over the job on time, and responsibility. “There is no dearth of jobs in the market, but they are different in nature. 34
Etihad Museum
Previously, there was more of residential and commercial projects; now it is changing to more of commercial projects like hotels and malls. “The market has only certain companies who can do such jobs. That’s why we are so successful in the market. You can take the example of Mohammed bin Rashid library, which is in the shape of a book; not everyone will be able to do it.” The contractor plans to bag two to three more jobs, worth another AED600mn in 2018. Botros mentions: “We have planned a lot of things in the pipeline. One of the important aspect that the Dubai government is focussing now is the usage of solar energy. We are planning to open a factory for solar heaters. We will source the solar panels from Canada and the UK. “This supports the Smart Dubai initiative, launched by HH Sheikh
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Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai the smartest and happiest city in the world, and achieve the objectives of the Dubai Clean Energy Strategy 2050 to make Dubai a global hub for clean energy and green economy by providing 7% of its total energy from clean energy sources by 2020, 25% by 2030, and 75% by 2050. “After sourcing the panels, we are going to assemble it in Dubai. We will supply and install the panels for our customers. We do have enough work in Dubai.” Botros plans to see ASU as a successful international company in the next five years. He concludes: “We are doing Mediclinic in Al Barsha South. They have also invited us to make a hospital in Mauritius. We hope to start working on the latter by the end of 2018.”
Al Shafar United (ASU) Projects Project Name & Location
Employer
Scope of work
Value of job (AED)
Start date
Boulevard Point Downtown
Emaar Properties
electrical, plumbing, HVAC, fire protection, BMC
155.22mn
Oct 2016 Sept 2018
BlueWaters Island residential buildings
Meraas
electrical, plumbing, HVAC, fire protection, BMC
350mn
Mar 2015 Apr 2017
Vivanta By Taj, Jumeirah Lake Towers
Signature Residences
electrical, plumbing, HVAC, fire protection, BMC
94.5mn
Apr 2016 Nov 2018
Mohammed Bin Rashid Library, Al Jaddaf
Dubai Municipality
electrical, plumbing, HVAC, fire protection, BMC
203.7mn
Oct 2016 Apr 2018
Mediclinic Parkview Hospital, Al Barsha south
Mediclinic Middle East
electrical, plumbing, HVAC, fire protection, BMC
184mn
Dec 2016 Sept 2018
Dubai Arena, Al Wasl
Meraast
electrical, plumbing, HVAC, fire protection, BMC
398mn
Dec 2016 Dec 2018
Dubai Aviation Refurbishment of Dubai Engineering International Terminal 1, Halls C&D Project Corporation
electrical, plumbing, HVAC, fire protection, BMC
326mn
Oct 2016 Nov 2018
Dubai Mall Expansion Downtown
Emaar Properties
electrical, plumbing, HVAC, fire protection, BMC
227mn
Feb 2017 Aug 2018
Thematic district: Opportunity Expo 2020
EXPO Dubai 2020
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-
-
www.cbnme.com
Completion date
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Tamweel Tower, Jumeirah Lakes Towers
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Safety first Industry experts talks about fire safety specifications in the UAE and how they should be adopted at the early stages to counter tragic mishaps In August 2017, the Torch tower in Dubai Marina caught fire, damaging 38 apartments over 64 floors, up to the 85th. There were no reported casualties in the incident but in the recent years, Dubai and the UAE as a whole has seen quite a few fire tragedies. To come up with permanent solutions for curbing the number of fire incidents in the country, the updated UAE Fire and Life Safety Code was unveiled at Intersec 2017. During the exhibition, First Lt Taher Hassan Altaher, head of Dubai Civil Defence (DCD)'s inspection and permitting section, said the 1,384-page code – 677 pages longer than its 2011 version – has been prepared based on international references and feedback from consultants, contractors, and local property developers such as Emaar and Deyaar. The new code includes guidelines related to cladding such as testing, installation, and maintenance responsibilities of each building development party such as clients, consultants, and contractors. Altaher added: "Existing buildings are being researched, and there's a timeline for all cladding for maintenance, after which they have to be changed. Until then, those cladding components have to be maintained." www.cbnme.com
He also said that ensuring the cladding is eventually changed is "still on the table". "Existing towers already have DCD approvals and don't have to change it. Cladding sections undergoing maintenance would have to comply with the new code." In another major update, all vital buildings in the UAE will be directly linked to a smart fire safety system of the Civil Defence where fire warnings will be sent automatically to operations room, said Major General Jassem Al Marzouqi, commander-inchief of Civil Defence, Ministry of Interior, in Abu Dhabi. The requirements for the buildings regarding the safety equipment are sprinklers, alarm system, fire extinguishers, and all safety tools to prevent fire. The improved fire safety code will be implemented in all new and upcoming buildings across the country. Ashish Chaturvedi, marketing manager, Ducab, believes that as a UAE corporate citizen, it is considered a responsibility to educate customers as well as the wider public on the importance of fire safety. “Today, there is a high level of awareness of the importance of fire safety standards in buildings, and now there are even greater attempts being made to ensure
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that the highest standards are understood and met.” He asserts that fire safety specifications should be adopted in the early stages in construction. “Within the construction field, fire performance cables are intended for all applications requiring circuit integrity during a fire. These cables generate very low smoke and are halogen free, thus helping to save human life and protect sensitive equipment. The biggest challenge today is that sub-standard cables do not compare when put to the test in fire conditions, and are thus frequently the cause of building fires; particularly in older infrastructure.” Chaturvedi also adds that the company therefore encourages contractors to seek cables and accessories that are certified by local and international bodies to ensure the highest level of safety. “These standards may include third-party certification to BS6387 by the Lost Prevention Certification Board (LPCB) in the UK. LPCB is in turn accredited by the United Kingdom Accreditation Service (UKAS). “When it comes to fire safety testing in particular, we have complete in-house test facilities to carry out all fire tests required by BS6387. Although the fire performance test is termed as a type test, we carry out its own program of regular sample testing of fire performance products. It is also important that any product is certified by independent LPCB & BASEC UK to meet the latest BS EN, IEC and IEEE standards, and current Code of Practice.” Karam Hamadeh, Middle East territory manager at Technical Glass Products, also believes that it is key that a strict fire safety specification is adopted early on by the designer, when it comes to passive fire rated systems. He says: “The safeguard here is adopting best industry practices when it comes to testing and certification. Adopting fire safety codes and frameworks such as UL and IBC uniformly across the board - in addition to conformance to the local codes - helps in substantially reducing the margin for mistakes. “Fire rated assemblies does not only mean the successful passing of a fire 38
Now there are even greater attempts being made to ensure that the highest standards in fire safety are understood and met.” Ashish Chaturvedi, Ducab
The safeguard here is adopting best industry practices when it comes to testing and certification.” Karam Hamadeh, Technical Glass Products test. The hose stream test and the impact safety tests are components of fire testing as important as the fire test itself. A hose stream test is a crucial component of the fire testing. It assesses the thermal shock resistance of an assembly and serves as a great test of robustness, a much-needed quality during a building fire.”
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Plans ahead Fire accidents in the UAE alone have already recorded a 41% drop during the first half of 2017 compared to targets set as part of the General Command of the Civil Defense's (GCCD) 2017-2021 strategy. Chaturvedi reveals Ducab’s expectation in 2018, adding “In 2018, we hope to see greater consciousness for product quality. It is encouraging to already see an increased focus on the certification of products installed to supply power to equipment used in fire-fighting, elevators, sprinkler pumps, and in large complex buildings, where a fire response strategy involves evacuation of occupants in a phased manner. “Our full range of FlamBICC cables are rigorously tested and approved to meet the life and fire safety objectives of fire survival time as determined by the British Standard Codes of Practice. Ducab commits to meet and adhere to all new certification standards as laid down by the UAE and international authorities, and we are confident of meeting the new standards in the UAE as well. Moreover, it is increasingly important to be innovative and diverse in your portfolio, providing solutions to the specific needs of clients at the most effective price point.” In addition, Hamadeh also points out that the demand for transparent fire barriers has been pushing the industry for the last six years in the GCC. “Fire rated glass and "more of it" has started to dominate project requirements. I believe the need for larger panels, less separations, and more clarity in fire barriers will be the trend for 2018 and the foreseeable future. “We have recently developed the ClearView system, comprising butt-glazed, low-iron fire-rated, hose stream tested, and impact safety-rated glass with a heat resistive perimeter frame. The butt-glazed joints feature nearly colourless transitions between adjoining pieces of the lowiron glass, eliminating the need for coloured internal glass unit spacers or vertical frame mullions.”
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YOUR NEEdS, OUR SOlUTiONS. BAHARAIN - Y.K. ALMOAYYED AND SONS B.S.C. - Manama - almoayyed@almoayyed.com.bh IRAQ - MTT - MACHINE TECHNOLOGY TRADING CO. - Baghdad - commercial@mtt-iraq.com JORDAN - GLOBAL BRAND TRuCKS LIMITED - Amman - sales.admin@ivecojordan.com LEBANON - OMATRA - Beirut - lebanon@omatra.org OMAN IVECO - International Integrated Equipment LLC (IEE) - Muscat - iie@sbigh.com OMAN ASTRA - AL FAIRuZ TRADING AND CONT. CO. LLC - Muscat - jobby@alfairuzoman.com KINgDOM OF SAuDI ARABIA - ORIENT MARKETING & TRADING COMpANY LLC Jeddah, Riyadh, Dammam, Abha, Al Madinah Al Munawara, Jubail - iveco@alfuttaim.sa KuWAIT - KuwAIT AuTOMOTIvE IMpORTS CO.w.L.L (Al Shaya & Al Sagar) - mail@kaico.net u.A.E. - AL GHANDI AuTOMOTIvE GROup - Dubai - samj@alghandi.com u.A.E. - uNITED ALSAQER HEAvY EQuIpMENT L.L.C. - Abu Dhabi - mohammad.himmo@alsaqergroup.com IVECO Middle East Representative Office: marco.torta@iveco.com IVECO CAPITAL Middle East: waleed.alshatnawi@cnhind.com
// Event pReview
Intersec 2018
Intersec 2018 points to latest technologies as tech-driven and networked homes transition from fantasy to reality
F
avourable government initiatives towards energy efficiency, a resurgent construction sector, and the rise of the Internet of Things (IoT) will turn the Middle East smart home market into a $1.86bn industry by 2022, according to a recent study. The Middle East Smart Home Market report, authored by analysts TechSci Research, said demand for smart lighting, HVAC, security and access control, entertainment, and other IoT-connected home devices will grow 28% annually, with revenues more than tripling in value from an estimated $536mn in 2017. The December 2017 study said video surveillance, intrusion and fire detection, along with access control would be among the fastest growing smart home segments, with revenues from these applications reaching $332mn by 2022, up from $91mn in 2017. In the GCC, high per capita incomes and growing preferences for luxurious, networked, 40
and high-tech homes is also a key factor, with the UAE ($203mn) and Saudi Arabia ($182mn), comprising 38% and 34% respectively of the entire Middle East smart home market in 2017. The two Gulf countries will hold a similar market share right up to 2022, according to the report, opening up plenty of opportunities for suppliers of home automation, security, entertainment, and energy management. Many players from across the globe will look to establish partnerships with regional real estate developers, consultants, integrators, and installers at the upcoming Intersec 2018 exhibition in Dubai. The three-day security, safety, and fire protection trade fair runs from January 21-23, 2018, at the Dubai International Convention and Exhibition Centre, and features a Smart Home and Building Automation section. More than 30 of the event’s 1,300-plus exhibitors will be part of a dedicated Smart Home Pavilion, where they will showcase their latest
// construction business news me // January 2018
home automation, security, access control, energy management systems, and multimedia technologies. Ahmed Pauwels, CEO of Intersec’s organiser Messe Frankfurt Middle East, said: “Smart, networked, and tech-driven homes are making the transition from the realms of fantasy to reality, as increased consumer awareness, favourable legislation, and falling installation costs drive smart home demand across the world. In the Middle East, security is an integral part of a home’s infrastructure, and deployment of security and access control systems such as wireless locks, IP-enabled devices, and iris detection systems, is increasing. “The technology allows home-owners to monitor activities through their smartphones, tablets, and other wireless devices from anywhere and anytime, and the latest solutions in the market will be on show at Intersec 2018’s Smart Home and Building Automation section.” Bird Home Automation from Germany
// Event pReview
and Italian companies Videx Electronics, FDF, Ksenia Security, and AVS Electronics, are among the global manufacturers sharing the stage at Intersec 2018’s Smart Home and Building Automation section, which at more than 300sqm, is 15% larger than the previous year. First-time exhibitor Ksenia Security will launch Lares 4.0, an IP-based integrated smart system where users can control through a single source the entire home eco-system, including access control, CCTV, heating, ventilation, and air conditioning (HVAC), along with other IoT-connected devices, such as entertainment systems. Flavio Zarlenga, sales and marketing director at Ksenia Security, said that Lares 4.0 can be controlled at home with a mobile user interface or remotely via a dedicated mobile app. “It’s possible to receive, even by e-mail, not only main alarm signals but also important information about the system status, while by means of the integrated web-server, users can remotely manage the system using smartphones or tablets. Lares 4.0 represents by far the most advanced and reliable solution in the digital revolution for both security 42
and home and building automation. “It can control lights, climate, irrigation, doors, windows, or any type of IoT-connected appliances, on top of all the security aspects such as video surveillance, intrusion detection, or access control. We’re fully aware of the huge potential in the Middle East smart home and building automation market, and totally confident in our new IoT Solutions to meet and exceed expectations. “Our platforms are already fully integrated with the most important home automation systems and, via cooperation with our local partners, we’ve recently developed some interesting projects in Saudi Arabia, the UAE, Jordan, and Bahrain.” Elsewhere, Spanish manufacturer Fermax, a specialist in audio and video door entry systems, will showcase its latest versions of audio and video access control kits, along with new IP solutions for building communications and security. Elena Ravello, brand manager of Fermax, said that the company already has a strong presence in the Middle East, having worked on several projects across the region: “Fermax has been in the Middle East for more than 10 years,
// construction business news me // January 2018
and our door entry systems are installed in top reference constructions such as the Palm Jumeirah UpTown Motor City, and Princess Tower in Dubai. “Fermax targets residential and commercial communications along with the security markets, and Intersec gives us the opportunity to launch new products, explain personally the technical specifications and the benefits of our products, as well as show their operation. We also want to enhance our brand globally, and we take advantage of this big event to meet our partners and customers, and of course find new clients from all the Middle East, North Africa, and Asia regions.” AVS Electronics will also debut its new range of Raptor wireless home automation control panels at Intersec 2018, where it will demonstrate its KNX/MODBUS interface for seamless operation. CEO Fabio Baro said: “The latest trend in the smart home market is towards integration within systems. The more a solution can be integrated with other applications in today’s smart home environment, the more successful that solution will likely become.” In its 20th anniversary edition, Intersec 2018 will occupy 59,000sqm across 12 halls, with the show’s other six sections covering Commercial Security, Fire and Rescue, Perimeter and Physical Security, Information and Cyber Security, Safety and Health, and Homeland Security and Policing. New developments include a Drones Pavilion and an indoor Drone Zone, while returning features include the Safety Design in Buildings Pavilion in the Fire and Rescue section, as well as an Outdoor Demonstration Zone of the latest fire rescue applications in action. A comprehensive three-day conference programme will be spearheaded by Dubai’s Security Industry Regulatory Agency (SIRA) Forum, while other topics will cover cyber security, drones, artificial intelligence, commercial security, and fire protection. Intersec 2018 is held under the patronage of HH Sheikh Mansoor bin Mohammed bin Rashid Al Maktoum, and supported by the Dubai Police, Dubai Civil Defence, the Dubai Police Academy, SIRA, and the Dubai Municipality.
1 – 3 May 2018 www.automechanikaDubai.com
The largest international trade exhibition for the automotive service industry in the wider Middle East Some compelling show figures: 1,955 Exhibitors 30,322 Trade Visitors 25 Official Country Pavilions
57 Exhibiting Countries 136 Visiting Countries 38 International Trade Associations
Register online to visit at www.automechanikaDubai.com/Logistics
// Machinery & Vehicles
Muscle & Might Our monthly review of the workhorses of the construction industry
46 A round-up of the important updates from the
global construction equipment market
48 A detailed look at machinery giant JCB’s rapid
Loadall production line
52 IVECO to launch its new heavy-duty Stralis X-WAY in
the Middle East in 2018
56 Continental Tyres’ Ian Jackson talks about its latest
tyre pressure monitoring system technology
44
// construction business news me // January 2018
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// NEWS
construction
Akem erects 66m crane in Istanbul The official agent of Raimondi Cranes in Turkey, AKEM Group, has completed the erection of a new MRT159 topless tower crane with a height under hook (HUH) of 66m on a jobsite in Üsküdar, Istanbul. The MRT159 is the first of four Raimondi cranes to be placed on the site, which is being managed by Kalyon Construction. Kalyon Construction, with nearly 50 years in the sector, is best known for its mega infrastructure projects with a portfolio that spans transportation hubs, airports, and energy facilities. The Raimondi MRT159 is the first crane to be erected on the Kalyon Construction jobsite H Okan Deligöz, general manager, AKEM Group, said: “A total of four Raimondi cranes will be positioned in Üsküdar. The
newly-erected MRT159 is planned to be onsite for approximately 12-14 months at the residential development. Two 10t MRT189s will be erected in three months’ time, and a final MRT159 is to follow shortly thereafter.” He continued: “We felt that the MRT159 would be a great value for our clients due to the crane’s maximum load of 10t with a 60m jib. In Turkey, a load
of iron or steel is typically around 2-2.1t, making this particular model versatile for any company that has recurring construction needs. Having previously worked with Kalyon Construction on the prestigious Kartal project designed by Zaha Hadid Architects, we have forged a strong relationship based on our dedication to client needs in terms of technical support.”
In total, four Raimondi cranes are to be erected at the residential development jobsite under Kalyon Construction. First unveiled at ANKOMAK 2016, the MRT159, which has a 65m jib length and a maximum tip load of 1650 kg, boasts a maximum load of 10,000kg. It also features a selection of three different winches with 30kW, 37kW, and 45kW motors, respectively. The MRT189 guarantees easy, safe, and comfortable access to all main systems. Winches, pulleys, electrical cabin, and safety devices can all be installed in a city version of the MRT189, using a city tower section, or in a climbing version. Both versions are available for installation on an embedded element, a fixed cross base, or a travelling cross base.
Equipment
SANY chairman hails largest ever Middle East order Chinese giant SANY Heavy Industry has signed a $86mn purchasing agreement with a Kuwaiti engineering construction contractor. According to the manufacturer, the sale is SANY's largest international order in Middle East market so far. Under the deal, SANY is providing a full range of its products to its Kuwaiti customer, including more than 600 truck cranes, excavators, and rotary drilling rigs. The equipment is intended to support Kuwait's national infrastructure projects, which are expected to greatly pro46
mote the implementation of "Belt and Road Initiative" in the Middle East. Signalling the significance of the deal, Xiang Wenbo, president of SANY Heavy Industry and Zhou Wanchun, chairman of SANY In-
// construction business news me // January 2018
ternational Headquarters, attended the signing ceremony. "SANY has always regarded product quality and service as its core competitiveness in the overseas markets," Xiang said, adding that SANY developed
specific products to suit the tough working conditions in the Middle East. SANY has invested heavily to build its service network as it looks to build on its solid foundation for even greater development within the Middle East market. Since its first entry into the Middle East market in 2006, SANY's machines have participated in a number of mega projects' construction, including Burj Khalifa Tower, Jazan Economic City in Saudi Arabia, and the world's largest airport -- King Abdulaziz International Airport.
cranes
Kuwait success for Abu Dhabi-based NFT NFT, one of the world's leading tower crane suppliers, has boosted its market presence in Kuwait with a number of deliveries to major projects in the country. One of the most significant deals has seen the first Potain self-erecting cranes enter the country. The customer, Nasser Al Hajri & Partners Company, bought an Igo T130 and an Igo 50, both of which are being used to lift pipes and support the installation of heavy materials at the Mina Al Ahmadi and Mina Abdullah (MAB) refineries owned by Kuwait National Petroleum Company. NFT also won its first ever contract with local construction giant, Combined Group Contracting (CGC). The company has supplied a number of high capacity MD 1100 and MD 550 cranes to lead construction on a $164mn car park facility for Kuwait's Ministry of Finance at Al-Farawaniya, Al-Farwaniyah Governorate, Kuwait. Nabil Al Zahlwai, CEO, NFT, said: “These deliveries mark the first appearance in Kuwait of both self-erecting and highcapacity MD special applications cranes. Potain has the most comprehensive range of tower cranes in the world and these projects are a great opportunity to show the market what they can do. Our team in Kuwait, led by Yousef El Ghabra and Fadi Daher, has worked extremely hard to win these contracts, but our unique experience and expertise with tower cranes means we’re already repaying our customers’ faith by providing first-class www.cbnme.com
support, even with stringent project requirements.” The high capacity MD cranes are needed because of the precast concrete sections used in the car park design. These require loads of up to 20t to be lifted, so NFT specified four MD1100 and two MD550 cranes, with jib lengths ranging from 40m to 70m and working heights from 50m up to 73m. The maximum capacity of the MD1100 models is 40t, while the MD550 can lift up to 25t. NFT is providing full Manitowoc Crane Care support on the car park project. This includes operators, technical study and support, and delivery and installation on site of the cranes. Fadi Daher, senior sales manager at NFT, said this was another important differentiator that helped secure the contract. “We have technicians installed permanently on site, so there is always someone there, no matter what time. We also have a container of spare parts on site, so any downtime is minimised.” Construction of the car park started in June 2016 with the tower cranes arriving in May 2017. CGC is renting the cranes from NFT over 29 months under a “lease to own” finance programme. This flexible arrangement gives CGC the opportunity to utilise the cranes on future projects. Daher added: “We always try to be as flexible as possible for our clients. The customer is satisfied with NFT’s and the tower cranes’ performance and has invited us to bid for other projects.”
Doosan refreshes prime power genset line-up
Doosan Portable Power has launched a new range of four generators from 2060kVA. Beyond construction and rental, the new generators, which are available as both 50Hz and 60Hz versions, extend the Doosan portfolio to a wider audience to cover applications such as home standby, telecommunications, and backup power for small businesses, said the company in a statement. The four new generators – G20, G30, G45, and G60 – provide prime power outputs of 20kVA, 30kVA, 45kVA, and 63kVA and all four units are available as open units (XF) or sound attenuated versions (XW). Doosan added that the equivalent 60Hz versions are also available in a range of voltages between 220V and 480V (phase to phase). The new generators are powered by Cummins diesel engines and are covered by the best standard warranty on the market – two years and/or 4000 hours on the complete powertrain. The new generators are also fully supported by the extensive Doosan Portable Power dealer network for the Middle East and Africa, from unit start-up to complete servicing, maintenance and troubleshooting back-up. In addition to dealer parts stock for planned servicing or emergency needs, parts are also available through the Doosan network and from within the Doosan Parts warehouse in Dubai.
Doosan explained: “Sharing the same design and characteristics, the new generators offer robustness and reliability, high performance, and a wide choice of features to meet the needs of a very wide range of power applications, from prime power in remote areas to stationary units in grid back up. The standard frame-fuel tank configuration of the generators ensures autonomy of at least 15 hours at 75% of the load, allowing users to work regular shifts without refuelling concerns.” Safe and easy access to operation and maintenance areas has been a priority throughout the design of the new generators. Accessibility to key areas, including the engine radiator compartment and maintenance points, has been enhanced. The air flow has been optimised throughout the generator unit to meet cooling requirements for locations with high ambient temperatures, without impact on the electrical output performance. A user-friendly feature is the electrical control and power compartment, which has been designed to meet the highest safety, reliability, and flexibility requirements. All control functions are grouped together on the 6010 Deep Sea Electronics simple-to-use operator control panel, displaying critical operating parameters at a glance.
construction business news me // January 2018 //
47
// Manufacturing
A 40-year stretch A look at machinery giant JCB’s rapid Loadall production line
N
estled in a quiet green corner of Staffordshire in the heart of the UK and set aside a dreamy lake that looks out onto some of the country’s most stunning landscapes, JCB’s Rocester home doesn’t immediately strike you as the hub of one of the machinery industries’ most successful stories over the past four decades. As JCB prepares to mark the 40th anniversary of Loadall production later this year, CBNME takes a look at the UK production line for a detailed look at the manufacturing processes that make the company’s telescopic handler the biggest selling in the world. From the first Loadall in 1977 JCB built its 200,000th telehandler in 2016 48
and this year celebrates four decades of this iconic machine. There are now more than 30 Loadall models, though the number of engine, transmission, boom, and cab options results in over 1,000 machine configurations being built at the centre of JCB’s Rocester facility. Over 35,000 tonnes of steel a year goes into the construction of chassis, stabiliser legs, and booms. Sheet steel is fed into two main production lines, one for booms and one for chassis, with a side production area for stabiliser legs. The steel is cut using computer-controlled laser and CNC plasma cutting machines. A 650-tonne press is used to form the box section of the boom, which is tack welded
// construction business news me // January 2018
with initial fitting of bushes, while chassis sides are drilled and tapped with all necessary holes. It takes 45 minutes to make two chassis sides, with a further seven to 12 minutes of drilling and tapping. All chassis and boom structures are tack welded by hand. Up to 70% of the chassis and boom weld is then carried out by robot welders, with manual operators completing the difficult to access welds. An incredible 14,509,818m of welding wire is used in the Loadall facility annually. A twin boring machine completes a final bore of the boom mounting points to ensure that the two holes are perfectly aligned. Two £1.2mn computer-controlled machining centres
TRUCKS
// Manufacturing
Profitable in a downturn JCB defied challenging market conditions by growing earnings by more than 34% in 2016, the company revealed earlier this summer. Announcing its annual results for last year, the Staffordshire-based machinery maker revealed that earnings for 2016 on an EBITDA basis were £287mn (2015: £214mn). Sales turnover rose by nearly 12% to £2.62bn (2015: £2.34bn), while machine sales increased to 66,011 (2015: 59,844). This robust performance was achieved despite a contraction in the global construction equipment market of 1% in 2016. “JCB’s strong performance in 2016 was against some economic headwinds which saw the global construction equipment market shrink,” explained JCB CEO Graeme Macdonald. “Some markets grew, such as India, which rose by almost 40%, while others fell, including Brazil which was down by more than 40%. The UK market contracted by 5% in 2016 but the good news is that, after a difficult few years, European markets grew strongly and were up by more than 10% last year.” JCB chairman Lord Bamford added: “While we face challenges in some parts of the world, the global construction market so far in 2017 is buoyant and is expected to grow further during the remainder of this year. We continue to launch innovative new products and enter new sectors which will enable JCB to secure strong levels of growth in the future. “The UK market has got off to a particularly buoyant start this year, with housebuilding driving demand for compact and mid-range equipment, particularly telescopic handlers. In addition, there are some key infrastructure projects such as HS2 (high speed rail 2) and Hinkley Point and Thames Tideway which are in the early stages of implementation, so customers are currently evaluating their fleet and machinery needs. Road improvements and widening schemes across the UK are also leading to increased demand for equipment.”
50
// construction business news me // January 2018
drill, tap, and finish the boom sections ready for assembly. Booms, chassis, and stabilisers are all fed through a twohour paint process, starting with a shot blast to remove contamination and prepare the steel for painting. All components are painted before assembly to ensure a high-quality finish. JCB gets through 73,000l of primer and 50,000l of gloss each year painting Loadalls. Finished components are baked at 90-120°C to provide a robust, protective covering for the machine. While yellow is the most popular colour, customers can also order Loadalls in their own livery. There are 300 staff in manufacturing and more than 460 workers in Loadall assembly. Sub-assembly sections sit on either side of the main assembly lines, preparing wiring harnesses, engines and transmissions, and cabs and axle assemblies. These feed into the main lines as required, ensuring that production moves swiftly through the process. JCB axles are fitted with wheels and attached to the chassis.
JCB built its 200,000th telehandler in 2016 and this year celebrates four decades of this iconic machine. ”
Hydraulic valve blocks, rams and cylinders from the hydraulic component division within the Rocester site go on next. Engines from JCB Power Systems are attached to transmissions from JCB Transmissions, with exhausts and other ancillaries added on the subassembly lines. There are around 3,000 components in a JCB Loadall and with up to 1,000 configurations, every build is strictly coordinated. With 35 build stages, it takes around eight hours to fully assemble a Loadall. Loadall cabs arrive fully finished and these are installed along with the machine’s cooling pack. Three inspection points ensure that every machine meets with JCB’s exacting quality standards. www.cbnme.com
Oils and fluids are added, and the engine started. Every Loadall goes on to a rolling road and the engine and transmission are put through 13 minutes of speed tests, to calibrate the driveline. Once warmed through, the Loadalls enter a UVXPOSE booth that uses ultra-violet light to check the integrity of hydraulic componentry. The initial fluids contain a tracing additive that is easily visible under UV light. An external test facility follows, where 10 operators carry intensive operational testing. This includes warmup, steering tests, and weight tests. Attachments that have been ordered are also installed and tested. The machines then enter a second UVXPOSE dark
room for checking, as part of an additional quality sign-off, before heading to the pre-delivery inspection centre. In August 2016, JCB opened the Loadall Customer Focus Centre (CFC). Every machine comes from predeli very inspection (PDI) to the CFC, where it is checked over again. Decals are attached and customisation completed, with the addition of toolboxes, lighting, and other optional equipment. The real innovation in the CFC is the Command Centre. Every Loadall model has JCB’s LiveLink telematics system feeding information into the Command Centre. Data is also imported from JCB’s tech web service centre and from customer calls. A team collates all available information from Loadalls all over the world. If a concern is identified, the team initiates an enquiry into the cause and if it relates to manufacturing, this can be fed back to the factory speedily. Afterwards, the Command Centre then tracks the next wave of machines to be produced to ensure quality is maintained to the highest standards. The system greatly improves the speed of feedback from the field, which would traditionally have taken weeks to get back to manufacturing.
construction business news me // January 2018 //
51
// Trucks
An X-WAY Vision Meet IVECO’s new heavy duty Stralis X-WAY, which launches in the Middle East in 2018
I
VECO’s newest truck, the Stralis X-WAY, will soon be launching in the Middle East and, in many ways, combines its work on upgrading the on-highway Stralis range with the robustness of its Trakker line-up. The Stralis X-WAY debuted last summer at the IVECO plant in Madrid ahead of a European launch towards the end of 2017. Accord-
52
ing to the CNH industrial-owned and Italy-based company, the truck “raises the stakes in light off-road missions with the highest payload in its segment, combining the best of IVECO’s fuel efficiency and safety technologies with the brand’s most robust chassis design”. The Stralis X-WAY has been designed with an exceptionally low kerb weight, allowing it to traverse
// construction business news me // January 2018
from heavy duty missions on highways to light work in off-road situations environments such as construction sites. IVECO believes that this, combined with its sturdy chassis, gives it the best payload capacity in the market in its category and the Super Loader (SL) version on an 8×4 chassis offers a kerb weight as low as 9t. This is currently the lowest available within the industry.
A wide range of high-efficiency engines, available with displacements of 9l, 11l, and 13l also means that the Stralis X-WAY is able to suit many different missions. IVECO believes that it may be used to deliver “excellent” fuel economy and “a powerful performance”. In Europe, the X-WAY launched with a new variation of the Hi-SCR engine technology which requires no EGR (as in exhaust gas recirculation, a feature of most modern diesel engines to lower NOx to meet Euro V1 regulations but criticised for excessive fuel consumption) and no parked regeneration. IVECO says its system, which has been used on its Trakker and Stralis trucks, dramatically cuts emissions and increases fuel efficiency, while lowering maintenance costs. It is particularly well suited to construction logistics missions where the absence of EGR – which lowers power density – also brings benefits in terms of payload as it makes the vehicle lighter. While details of the engine being www.cbnme.com
Our new X-WAY combines the legendary Trakker chassis strength with all the fuel saving and safety features of the New Stralis.” strapped to the Middle East version remain unconfirmed, should it launch with a version of the HiSCR engine, then IVECO will have an extremely compelling offer for Middle East fleets. IVECO has placed total cost of ownership at the centre of its marketing strategy in recent years and beyond the engine, the Stralis X-WAY, comes packed with advanced
technology and is intended to allow for long service intervals. Add the durability of the Trakker chassis and the Stralis X-WAY promises savings in maintenance and repairs. The use of disc brakes further reduces costs, thanks to reduced wear and tear. The fuel reduction technologies used on the European launch models include the same intelligent systems such as Hi-Cruise and the Smart Auxiliaries that achieved a 11.2% fuel reduction on 2016’s new Stralis XP heavy truck as validated by TÜV SÜD, one of the world’s leading independent technical service organisations. A modular, mission-oriented approach has been used on the Stralis X-WAY, enabling a long list of customisation options that can be designed to suit fleet requirements for a wide variety of applications. It offers a choice of artic and rigid versions different axles, suspensions, vehicle setups, engines, and transmissions; hi-traction hydrostatic drive; a wide range of engines and gearbox PTOs;
construction business news me // January 2018 //
53
// Trucks
and on- and off-road homologations. The wide choice of features and components, the structural strength, and low kerb weight result in a vehicle that can be configured for an extensive variety of missions, says IVECO. The Stralis X-WAY offers a choice of cabs - the AD (Active Day) short cab with low roof, AT (Active Time) sleeper cab with low or medium roof, and for ultimate comfort, AS (Active Space) sleeper cab, which was designed around the driver for the long-haul missions of the New Stralis XP. According to IVECO, driv54
ers will be just as comfortable and safe on the longer on-road sections of their missions and on the shorter off-road drives when collecting or delivering a load on a jobsite. Pierre Lahutte, IVECO’s brand president, says: “The Stralis X-WAY breaks new ground in missions that have very specific requirements. Designed for on-road applications and light off-road mobility, our new X-WAY combines the legendary Trakker chassis strength with all the fuel saving and safety features of the New Stralis. It offers all the perfor-
// construction business news me // January 2018
mance and comfort benefits of our most advanced long haul on-road trucks like the latest XP, together with the robustness of our toughest off-road vehicle. “With the X-WAY, our customers can have the confidence to tackle the uneven and sometimes challenging terrain encountered during the ‘last mile’ when delivering to construction sites. High productivity, safety, and excellent total cost of ownership (TCO) for light off-road missions: this is what our customers can expect from our brand-new truck.”
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// tyres
The pressure is on CBNME talks to Continental Tyres’ Ian Jackson about its latest tyre pressure monitoring system (TPMS) technology
The Emirates Authority for Standardisation and Metrology (ESMA) recently announced that it was introducing a smart chip system to prevent the use of fakes and monitor the integrity of tyres. While it is an intelligent and sophisticated system – the UAE’s is the most advanced system of its type in the world – delegates at a special event held by Continental Tyres and RoadSafetyUAE in December 2017, were given a preview of how the launch of the German tyre manufacturer’s own state-of-the-art technology, ContiPressureCheck, can use data from tyres to save even more 56
lives as well as lower fleet costs. Ian Jackson, technical systems, sales and services manager for Continental Tyre Group, tells CBNME that the tyre pressure monitoring system (TPMS) uses an array of sensors to provide live pressure data and additional warnings at the point where there has been both a 10% and then 20% reduction in air pressure inside the tyre, notifying the driver of a problem. Jackson explains: “ContiPressureCheck allows for the safe resolution of a potential tyre incident, allowing the driver to stop at a service station or off the road before the situation becomes
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critical. As tyre inflation pressure directly contributes to the vehicle’s overall fuel efficiency, providing the ability to constantly monitor this offers the operator the opportunity to reduce their fuel costs.” In addition to inflation pressure, ContiPressureCheck also constantly measures tyre temperature. According to Jackson, the system looks for spikes in tyre temperatures as it can be an indicator of a failure which, if left untreated, could have costly or even dangerous consequences. “Should spikes in temperature occur, which when investigated cannot be attributed
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// tyres
Tyre monitoring in the UAE The Emirates Authority for Standardisation and Metrology (ESMA) announced the launch of a modern generation of tyre monitoring system in the UAE at last year’s GITEX event, which includes the use of a smart chip planted inside tyres and connected to a national vehicle monitoring system. The system is seen as an effective way of monitoring the safety and reliability of vehicle tyres on the country’s roads. The UAE is the first country to apply this system to improve the safety of passengers and decrease the rate of accidents related to sub-standard tyres. ESMA developed the technology to monitor vehicle tyres, to prevent the use of sub-standard or recycled tyres on the country’s roads, and enable relevant authorities to prevent tampering and monitor the level of tyre safety. According to ESMA, the system will directly decrease the number of traffic accidents caused by the use of low-quality tyres.
How to store tyres If stored in unfavourable conditions or if not properly handled, tyres change their physical properties. This can lead to a shorter service life, and the tires may even deteriorate to the extent that they become unusable. Correctly stored and handled tires retain their properties virtually unchanged for several years. Tyres should never be stored in the open air, even under a protective covering. Tyres also should be stored in a cool, dry area, moderately ventilated and away from direct sunlight. The storage temperature must not exceed normal room temperature. In heated areas, the tyres must be shielded from the heat source. The tyres must be protected from direct sunlight and continuous changes of air. As ozone is particularly damaging to tyres, the storage area must not contain any devices (electric generators or compressors) that generate ozone. Solvents, fuels, lubricants, chemicals, etc, should not come in direct contact with the tyres.
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to the tyres, this flags potential mechanical issues such as binding brake or wheel bearing failures.” Research by Continental Tyres shows that as many as one in four truck tyres may be running underinflated by 10%. This not only leads to significantly higher fuel costs – as under-inflation can increase fuel consumption by up to 3% - but also contributes to the likelihood of tyre failure, which is currently responsible for 20% of all truck breakdowns. According to Jackson, 90% of tyre related breakdowns are preceded by undetected punctures. “Safety is, of course, the primary benefit as the system will pre-warn the driver of any temperature or inflation issues. Larger commercial vehicles obviously have quite a distance between where the driver is sitting and the tyres themselves, so it is important for them to be aware of the condition of their tyres.”
He continues: “The main benefit with ContiPressureCheck is that it is constantly transmitting live data, continually pre-empting any potential issues in real time.” Unlike other systems that attach sensors to the pressure valve on the tyre, the ContiPressureCheck sensor is attached to the inside of the tyre itself, which improves measurement accuracy, claims Jackson. “Devices which are strapped to a metal wheel rim will be more susceptible to heat transfer during braking, making it difficult to monitor the temperature effectively. Sensors that are attached to the valves have the issue that the primary air seal is removed and instead rely entirely on the O-ring.” Continental’s own TPMS is the result of a partnership between the company’s tyre and automotive systems divisions, and Jackson says that it has been specifically designed from a tyre manufacturer’s point of view: “We understand how a tyre behaves and what factors routinely effect its performance, so we built a TPMS with those in mind.” www.cbnme.com
We will be shipping from our factories with the same quality wherever you are. It’s a truly first global platform.” The sensors used by ContiPressureCheck come in a rubber housing which is mounted inside the tyre. When the tyre needs replacing, the sensor is simply removed and fitted into a new housing and placed into the new tyre to continue its service life. If a new sensor is required and fitted, the system will evaluate all the sensors and by default, recognise and accept the new addition. If two or more new sensors need replacing at the same time, there is a need to reconfigure the system using the hand-held device. According to Jackson any tyre fitter
can install the system once they have had proper training and possess “a thorough understanding of commercial vehicle electronics”. Another charm to the system, he adds, is that it requires no maintenance at all. “If a wheel changes position, the system simply needs to be reconfigured via the hand-held devices,” he says, adding that the sensors will last approximately six years or 600,000km, “whichever comes first, and replacement sensors can easily be purchased from Continental Tyres or from an approved ContiPressureCheck stockist”. While the system is at the cutting edge of tyre technology, Continental Tyres has worked hard to ensure fleets of any type and budget can utilise it. Jackson says: “I genuinely believe all fleets could benefit, which is why we have tailored the system to allow for different applications. However, a long-distance truck operator may prefer live data streamed to the driver to ensure real time assessment of the tyres condition when away from base. But what is worth bearing in mind is
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// tyres
that it doesn’t need to be complicated. “Our ContiPressureCheck ‘Light’ is an entry level system which simply uses the sensors in the tyres and an easy-to-use hand-held device. With this ‘Light’ version, a quick walk round check can be completed once a week – which is enough for some users. This will enable an accurate pressure and temperature report to be generated for the whole fleet extremely quickly.” If deployed across a whole fleet using a telematic system, fleet managers would be able to access live data from all their vehicles, which Jackson says, will not only help report fleet-wide potential problems, but also generate reports to ensure an optimal tyre policy going forward. He adds that the system will also work with software such as its automatic trailer learning (ATL) to ensure truck and trailers can be switched as and when necessary with the system automatically connecting with them. “This not only involves minimal disruption, but also means that if a trailer has not been utilised for a while, ContiPressureCheck will run a complete check on all the new tyres it registers,” he explains. While ContiPressureCheck has only just been introduced to the Middle East, it has been out in the wild and used by fleets since 2014 in some markets, and Jackson says the reaction has been very positive so far. “To the point where we have some customers tell us that drivers prefer vehicles with ContiPressureCheck fitted. One of our ongoing customer initiatives is to provide practical advice and training tools to ensure drivers and fitters are fully up to speed on the system. We find when this is done, that the benefits speak for themselves.” The use of TPMS has been mandatory in the EU and the US for a number of years on passenger cars, and Jackson argues that legislation that requires it on new commercial vehicles should 60
follow suit. “Without a doubt, it would make the roads a far safer place. TPMS is essential to identify any potential inflation or temperature problems before they occur. Drivers can safely pull in for repairs at a service station or safe site rather than trying to fix a problem on the side of the road, which is, in itself, dangerous.” As the interview draws to a close,
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Jackson looks ahead to how Contintental Tyres sees the technology progressing. He concludes: “Telematics integration on a bigger scale is a priority for us and we’re working with a number of telematics companies through our customers. And the integration of tyre wear information is something we are looking at for the next phase.”
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Investment
CNHI successfully concludes World Investment Conference CNH Industrial (CNHI) successfully took part in the 22nd edition of the World Investment Conference, an annual event organised by the World Association of Investment Promotion Agencies (WAIPA). The conference, held on November 27 - 28, 2017, in Dubai, was attended by investment promotion agencies from all over the world, high-ranking representatives of public and private institutions, development agencies, universities, and NGOs. The 2017 edition of the conference, which is traditionally oriented towards the promotion of direct foreign investment, was particularly aimed at supporting investments that are able to guarantee sustainable development at local and global levels. CNHI was the only private
corporation in the capital goods sector to be invited to the conference, due in part to its business portfolio that covers all areas of infrastructure development, from earthmoving equipment to goods and passenger transport vehicles, from quarryconstruction vehicles to engines for power generation applications. The company is present in the Middle East and North Africa (MENA) region with extensive sales and service network for sev-
eral of its brands, notably CASE Construction Equipment, IVECO, IVECO ASTRA, and FPT Industrial. CNHI was represented at the conference by Michele Ziosi, head of institutional relations Europe, Middle East, Africa, and Asia-Pacific, who opened his talk by explaining how the CASE brand has been progressively expanding in the Gulf region, starting from Dubai itself, with the goal of accompanying the con-
tinual growth taking place in the area. Also, in relation to the challenges and opportunities of corporate investments, Ziosi stressed that “the sustainability of products and processes is a key ingredient of the success of a company’s investments. In this context, CNHI’s leadership in the research, development, and sale of alternative fuel machines and engines alongside the most advanced and cleanest of conventional fuel units, provides ample evidence of the company’s commitment to assisting in corporate communications and the drive to reduce emissions in the environment; likewise, the company’s many projects supporting local communities testify to its commitment in the realm of social accountability”.
Interkran erects five Raimondi tower cranes in Schaffhausen Official Raimondi Cranes agent, Interkran AG (Interkran), based in Lachen, Switzerland, has erected a total of five tower cranes in the Swiss town of Schaffhausen. The jobsite is a mixed-use project based in Schaffhausen’s old steelworks and will include residential, commercial, and office space. Swiss developer and builder, Klaiber Bau AG, will position the five cranes for a period of approximately two years, where they will be used in the full build of the large-scale project. “We have erected five Raimondi cranes onsite in Schaffhausen, two MRT223s and three MRT189s. The heavy lifting MRT223 has jib lengths of 70m and 66m, while the MRT189 has jib lengths from 65m, 60m and 42.5m respectively. This Klaiber Bau jobsite was fully attended to by the Interkran team in terms of the crane needs, from all logistics and transport to technical and application perspectives,” explained Teixeira. Now celebrating nearly two decades in the sector, Texeira added that Interkran has successfully collaborated previously with Klaiber Bau on smaller projects, which led to the latest work between the two companies. “Our work with Klaiber Bau has been mutually rewarding, and Interkran has put our full strength behind servicing our client on this demanding jobsite. We’re pleased to put our five of our Raimondi fleet at their disposal for use in this important project.”
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The ambitious community revitalisation project plans to dedicate 73% of the completed space to residential housing, with additional dining and public service areas projected to employ approximately 500 individuals. The development’s showpiece city garden will be open to the public, and ample vehicle and bicycle parking is also incorporated into the plans.
hvac
Leminar Flame Safe successfully tested in Spain Leminar Air Conditioning Industries has successfully tested and certified its Flame Safe Non-Coated Duct Systems for fire performance at Applus+ Laboratory in Spain. Flame Safe, which is designed and developed entirely by Leminar, is a cost-effective alternative to coated type duct system. It was introduced to the market in the early part of 2016, making Leminar the only manufacturer in the Middle East to produce both coated as well as non-coated type fire rated ducts within the same facility. The recent test results have confirmed the product’s strict compliance with the technical specifications required by British Standard 476 part 24 (ISO 6944) that relates to a ductwork’s ability to resist the spread of fire. Flame Safe meets the stability, integrity, and insulation criteria set forth under this framework. The results also validate Flame Safe’s superior quality
and Leminar’s credible manufacturing practices, said the company statement. Dipak Bhadra, general manager, Leminar Air Conditioning Industries, said: “Integrity is an important value at Leminar. From our early days, we have voluntarily opted to subject all our products to rigorous testing in European countries. Testing helps to increase the product’s reliability by detecting latent defects, improves its quality and ensures any post-sale incidents. We believe it is one of the best ways to make sure we offer only the highest quality products to our customers.” Testing was conducted for both Type A (Fire outside) & Type B (Fire inside) un-insulated and insulated ducts suitable for smoke, ventilation, car park extract, pressurisation systems, and commercial kitchen extract systems. In addition to this testing, Leminar has also obtained certification and third-party listing with Exova Warringtonfire, UK for Flame Safe.
Technal ME to create awareness about fire safety regulations Aluminium facade systems specialist, Technal Middle East, has launched a campaign to create more awareness among UAE building contractors, consultants, and specifiers about fire safety for building facades. According to Sam Robinson, general manager, Technal Middle East: “We have developed a guideline to help the construction industry better understand how to ensure compliance with the relevant codes and standards for fire safety of external walls on high-rise buildings. Our guideline makes understanding the fire hazards of combustible external wall materials clearer. In particular, we focus on the EN-1364-4 fire resistance test required in the UAE. Fire resistance is determined through destructive fire testing and the EN 1364-4 fire test is one of the most stringent and hardest to get through.”
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To kickstart the campaign, Technal organised a seminar on the UAE Fire and Life Safety Code rules on façades. Over 100 professionals from the UAE construction industry attended the event. Following this, Technal will be reaching out to more companies to ensure compliance to UAE Fire and Life Safety Code. Technal also recently launched a new non-fire-rated curtain wall assembly which has successfully undergone the EN-1364-4 fire resistance test required in the UAE. EN-1364-4 is proven to be the most stringent test compared to other standards used currently. Fully tested up to REI 180 minutes, Technal’s curtain wall assembly design extends the rating of the compartment floor to the exterior curtain wall assembly up to three hours.
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// Editor's pick
Hit the brakes China’s construction and investment activity in the infrastructure sectors will decelerate as Beijing attempts to tackle the high levels of local-government debt Growth in China's construction industry will continue to slow down between 2018 and 2022 as the government undertakes numerous reforms aimed at addressing overcapacity within the sector and high levels of local-government and state-owned enterprise (SOE) debt, such as winding down expansionary capital investments and revising large infrastructure projects. According to the new report by BMI Research, it is suggested that the pace of these and other economic reforms will accelerate after President Xi Jinping further consolidated his power during the National Party Congress in October 2017. Overall, growth in China's construction and infrastructure industry will also decelerate as Beijing's development priorities under the present 13 Five-Year Plan continue to shift away from large-scale initiatives and toward locally focused and service-oriented projects. Taking into account more-recent data from the National Bureau of Statistics, the report has downgraded the forecast for China's construction industry, and now expect real growth to average 4.7% annually between 2018 and 2022. Ongoing economic reforms initiated by the government, largely with the goal of deleveraging the financial sector, will lead to a slowdown in construction investment. The central government's attempts to improve transparency of local-government debt will see the former take control of opaque financing vehicles that have become commonplace in China's construction and infrastructure sectors. This will weigh on investment activity, particularly in the real estate segment and for projects, without 64
clearly apparent and tangible economic or financial benefits. In this vein, the central government in November 2017 suspended two metro projects in Inner Mongolia after the National Development and Reform Commission said it would more closely scrutinise the proposed infrastructure investments. The impact of these reforms on construction and investment activity are reflected in slowing steel demand and continuing capacity cuts on steel production. The report stated that while the Chinese government will continue to provide substantial support for infrastructure development, the scope of infrastructure investments over the next five years will be smaller in scale than in earlier periods. Upcoming projects will be more local in focus and involve greater participation from private inves-
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tors, representing a shift away from the high-value, expansive projects that have epitomised China's infrastructure sector over the previous decade. While this shift is tied to overall efforts of reducing local-government debt, it is also motivated by China's still-sizeable need for quality-of-life focused investments, such as social infrastructure, urban transport improvements, and water and trash utilities. This shift is evident in China's public private partnership (PPP) pipeline, where more than 55% of projects fall under Municipal Engineering, Environmental Protection, Urban Development, or Social Infrastructure. Similarly, the provinces in the PPP initiative receiving the most attention are inland, relatively underdeveloped provinces such as Guizhou, Xinjiang, and Mongolia.
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FM expo saudi Jeddah, Saudi Arabia FM Expo Saudi is the country’s new exhibition and congress dedicated to the facilities management industry. With major new infrastructure projects, higher rates of outsourcing, coupled with the ambitious regulatory plans, Saudi Arabia’s FM services market is quickly evolving. As awareness levels, particularly in the government sector, increases, the FM industry in Saudi Arabia is projected to grow at a staggering rate. Featuring a high-level congress programme, and co-located with Saudi Clean Expo, FM Expo Saudi will bring together key decision makers to network and will offer all those involved fantastic business development opportunities. Safety Design in Buildings Conference Dubai, UAE The Safety Design in Buildings conference is a GCC-wide initiative to debate safety standards and practices in the built environment. Experts are invited to share insights through presentations and panel discussions for an improved protection of people and assets in the Gulf. The campaign is open to contributions by regulators, construction and safety professionals, and periodically facilitates conference platforms in all GCC capitals and major cities. The campaign continues to build a pool of local and international experts who commit to unbiased presenting and consulting to their best knowledge and ability. All experts are dedicated to continuous professional education and to striving for highest quality standards in their respective disciplines.
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Intersec Dubai, UAE Intersec is the leading trade fair for professionals in the safety, security, and fire protection industries. For the last 19 years, it’s been the most important business platform in the MENA region. The 2017 edition saw more than 1,300 exhibitors gathering at Dubai World Trade Centre, and more than 32,000 visitors passed through the event’s doors. At the 2018 edition, one of the major topics of the event will be safety design in buildings, and people will be able to visit the third edition of the smart home pavilion. The exhibition’s job and career section will be even larger, as will the live demonstration area for drones. There are set to be even more exhibitors than the last event, showcasing the latest developments in security technology. Intermat Paris, France Intermat, the international exhibition for construction and infrastructure, will take place from April 23-28, 2018, at Paris Nord Villepinte, France. The exhibition will host 183,000 visitors and 1,500 exhibitors presenting an offer of equipment, materials and solutions for civil engineering and structural building works. Intermat has adjusted its sector organisation to respond to visitor expectations (more clearly specified sectors, a more efficient visiting experience and greater emphasis on innovation), arranging the event around four activity sectors for optimal clarity. One special feature makes this event unique - an outside demonstration area. Visitors can see the exhibitors' machines perform in a gigantic open-air construction area.
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