APRIL 2020
THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS
Opinion
WOMEN IN CONSTRUCTION
EVENT REVIEW A RECAP OF CONEXPOCON/AGG 2020
TALKING POINT THE RISE OF LUXURY BRANDED LIVING
CBNME recaps the stringent measures taken by the construction industry to keep people safe, to relief packages, and how this could change the way future projects are developed
A MEMBERS OF EMIRATES TRANSPORT BUSINESS CENTERS:
CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm
// CONTENTS
rabih@bncpublishing.net Group Publishing Director Joaquim D'Costa
APRIL 2020 // ISSUE #62
jo@bncpublishing.net +971 50 440 2706
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Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818
Deputy Editor Kasun Illankoon kasun@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net
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REPORT TALKING POINT COVER STORY PROJECTS OPINION TRUCKS EVENT REVIEW
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Photography Ahmad Khader ahmad@bncpublishing.net
Marketing Executive Aaron Sinanbam aj@bncpublishing.net
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// EDITOR'S NOTE
EDITOR’S NOTE MY THOUGHTS - COVID-19 This is a tough ed-note for me to put together. In just a few weeks the COVID-19 pandemic has changes the entire landscape of the construction industry. Make no mistake, there is no going back to the old ways of operating even for hands-on industry like construction. Health and Safety of workers on site, offices and at their accommodations will be scrutinised further. Construction sites could be heading towards more automation and robotics than ever before to minimise any health risks. Workplace dynamics will change dramatically and relationships between property owners and tenants will be revaluated. Has buyer confidence dipped? If so, how long before they start
pumping money into future property developments. All of this in a space of a few weeks. It has shown how the industry has needed to adapt and evolve on a daily basis due to the unknown of what could happen tomorrow. On the flipside, UAE has shown strong resilience in supporting businesses who are going through this crisis. The government is determined to ensure that businesses escape unscathed for the wellbeing of the population and its economy. Are these forced changes in how we operate good or bad? Only time will tell but the rest of 2020 will be seen as testing period for all players involved in the construction industry.
ON THE WEB Keep up to date with all the latest news, features and much more on our website. www.cbnme.com
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Kasun Illankoon Deputy Editor kasun@bncpublishing.net
اﻟﺤﻴﺎة ﻓﻲ دﻳﺮة إﻛﺘﺸــــﻒ ﻣﺘﻌﺔ اﻟﻌﻴﺶ اﻟﺠﺪﻳــــــــﺪة
إﻧﻀــﻢ اﻟـــﻰ اﻟﺤﻴـــﺎة ﻓـــﻲ دﻳــﺮة، ﻗﻠﺐ دﺑــﻲ اﻟﺘﺠﺎري
DEIRA LIVES EXPERIENCE THE URBAN REJUVENATION JOIN THE DEIRA COMMUNITY IN THE HEART OF THE DUBAI TRADING HUB
ﻟﻺﺳﺘﻔﺴــﺎر
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ﺑﻮر راﺷﺪ
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ﻣﺸﺮوع إﺛﺮاء دﻳﺮة
اﻟﻤﺮﺣﻠﺔ اﻻوﻟﻰ
DEIRA ENRICHMENT PROJECT
PHASE ONE
HE
IC
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T AT CY HY EN G RE ﻣﺤﻄﺔ ﻟﻠﺤﺎﻓﻼت BUS STATION
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PALM DEIRA METRO STATION
ﺳﻮق دﺑﻲ ﻟﻠﺬﻫﺐ
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ﻣﻮﻗﻒ ﺣﺎﻓﻼت اﻟﺼﺨﺒﺔ
ﻣﺤﻄﺔ ﻣﺘﺮو اﻟﺮاس
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ﻣﺤﻄﺔ ﻣﺘﺮو اﻟﻐﺒﻴﺒﺔ
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أو ﺗﻔﻀﻞ ﺑﺰﻳﺎرة ﻣﻮﻗﻌﻨﺎ اﻹﻟﻜﺘﺮوﻧﻲ ﻟﺘﺴﺠﻴﻞ اﻫﺘﻤﺎﻣﻚ
CALL US ON 04 605 3000 BEFORE LEASING SPACES RUN OUT OR VISIT OUR WEBSITE TO REGISTER YOUR INTEREST
www.deiraenrichmentproject.com leasing@ithradubai.com KEY PROJECT HIGHLIGHTS
ﻣﻌﺎﻟﻢ اﻟﻤﺸﺮوع اﻟﺮﺋﻴﺴ ّﻴﺔ
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إﺟﻤﺎﻟﻲ ﻣﺴﺎﺣﺔ ﻣﺘﺎﺟﺮ اﻟﺒﻴﻊ ﺑﺎﻟﺘﺠﺰﺋﺔ ٢ ﻗﺪم٨٣٤،٢٠٣
إ ﻣﺘﺪاد ﺟـﺪﻳﺪ ﻟﺴﻮق اﻟﺬﻫﺐ
ﻣﺒﺎﻧﻲ٨ ﻏﺮﻓﺔ ﻓﻨﺪﻗﻴﺔ ﻓﻲ١،٤٥٠
ﻣﺨـــﺎزن ﻋﻤﻮدﻳﺔ
.إن اﻟﻤﻌﻠﻮﻣــــﺎت واﻟﻤـــﻮاد اﻟــــﻮاردة ﻫﻨﺎ ﺑﻤــــﺎ ﻓﻲ ذﻟﻚ اﻟﻨﺼــــﻮص أو اﻟﺮﺳﻮﻣــــــﺎت أو ﻏﻴﺮﻫﺎ ﻣﻦ اﻟﻌﻨﺎﺻـــــﺮ " أﻋــــــﻼه" ﺧﺎﺿﻌـــــﺔ ﻟﻠﺘﻐﻴﻴـــــﺮ The information and materials contained herein including text, graphics or other items are provided “as is” and subject to change.
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// REPORT
OMAN’S REAL ESTATE OPPORTUNITY Cautious real estate recovery in 2019 presented opportunities for buyers, tenants: Oman Property Market Report by Cavendish Maxwell
Cavendish Maxwell, a leading property consultancy and chartered surveying firm in the Middle East, released its Oman Property Market Report for 2019-2020 comprising key property data and trends for the country’s real estate industry. The industry report was compiled by the firm's in-house strategic consulting and research team, and covers key data and overviews into the residential, retail, office, industrial, hospitality and entertainment sectors. Commenting on the report, Aditi Gouri, associate partner, strategic consulting and research at Cavendish Maxwell, said: Positive indications for the real 14
estate sector, such as high growth in traded value of properties, emerged in 2019 despite Omanisation efforts impacting residential real estate sector demand. However, since the beginning of 2020, Oman’s internal and external environment has changed rapidly. Whilst political stability has prevailed in the Sultanate after the change in power, the government is now increasing focus on the areas of budget deficits, debt and unemployment. At the same time, they will need to navigate the economic environment in the months ahead, which will be governed by the constantly evolving global situation and oil price movements.
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KEY MARKET INSIGHTS As part of its diversification strategy, Oman is focusing on its tourism industry as a key growth driver of the economy with the aim to boost the share of the sector’s contribution to GDP to 6-10% by 2040. In 2018, tourism contributed 2.9% to Oman’s GDP. Total tourism revenue in Oman stood at OMR 1.4 billion of which inbound tourists contributed 49% at OMR 680 million. With increasingly more expats leaving Oman due to the government’s Omanisation drive, residential property prices and rents have been impacted. Between December 2018 and December 2019 alone, the total
Aditi Gouri, Associate Partner, Strategic Consulting and Research at Cavendish Maxwell
expat population in Oman recorded a year-on-year decline of 2.9%. Supported by the recovery in oil prices until 2019, Oman’s real estate market recorded a gradual recovery providing more opportunities for buyers and tenants. After recording a steep drop to OMR 2.6 billion in 2017 from OMR 6.6 billion in 2016, traded value of property in Oman improved slightly to OMR 2.7 billion in 2019. Against the backdrop of the tepid economic environment combined with the Sultanate’s protectionist policies, a number of enterprises have found it difficult to sustain, impacting demand for office space. According to Invest Easy, between 2016 and 2019, the total number of registered enterprises decreased from 38,070 in 2016 to 21,913 enterprises in 2019, recording a negative CAGR of 17%. Oman’s retail sector is currently witnessing the rapid construction of new malls adding further pressure on the supply side. However, over the longer term, innovative retail concepts and online shopping are expected to drive growth in the sector. Oman’s hotel capacity has expanded over 80% in less than a decade to build a thriving tourism and hospitality industry. As of December 2019, total hotel occupancy rate in 3–5-star properties was 65.8% versus 66.1% in December 2018, showing a slight decrease. However, revenues rose 6.5% from OMR 25.7 million in December 2018 to OMR 27.4 million December 2019. WWW.CBNME.COM
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BRAND APPEAL Chris Graham, Consulting Partner, ESRAR Real Estate Consultancy, on the rise of luxury branded living Since the turn of the millennium, the influx of the world’s leading international hotel operator brands has seen Saudi Arabia’s hospitality offering continue to broaden at an impressive rate. Unsurprisingly, with the massive national infrastructure development, robust economy, strong domestic demand, and increasing openness and outreach programme to attract overseas visitors under the stewardship of the Crown Prince, world-famous brands are eager to plant their flags in the Kingdom’s super-prime locations 16
with luxury hotels and residences. Whilst the associated branded residential real estate market is still at an early stage with only a handful of branded developments being launched, this is expected to become a significant growth sector in the real estate market. With such a large domestic concentration of high net worth individuals, an increasing number of expatriate workers coming to live and work in the country, and the imminent opening up of the market to foreign lifestyle investors, conditions are
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highly favourable for the expansion of the branded residence concept along with the many benefits that it offers. A notable example is Amaala on the Red Sea, which is attracting every leading hospitality brand to compete for the prime hotel and residential opportunities that will be offered in this 6* wellness and lifestyle resort. “Branding real estate creates an aspirational model that reflects the prestige and kudos associated with a luxury brand, facilitating stand-out in an increasingly competitive and
crowded marketplace, in which consumer expectations continually rise,” explains London based real estate marketing specialist Chris Graham of Graham Associates, author of a leading new report on branded residences, who hosted a workshop on the subject at the recent Saudi Arabia Hospitality Investment Conference in Riyadh. Branded residences first appeared around a century ago in New York, yet today it seems surprising that they did not become an established model until the 1980s – and, even then, they remained a niche segment of the luxury real estate market targeting a privileged HNWI audience. These premium homes are in the best locations and associated with a 5* hotel, which provides a range of ‘at home’ services and luxury amenities to its neighbouring residents. Not much has changed in terms of the overall concept during the past 35 years; however, since the turn of the millennium the growth of branded residences has been truly astonishing. From 2002 to 2012 the number of hotel brands offering residences increased tenfold and is forecast to grow by a further 27% in the next three years. “This remarkable growth has been driven by wide-ranging and proven benefits for developers, operator brands and purchasers,” observes Mr. Graham. “I describe this as an unusual “win-win-win” scenario, in which all of the parties can benefit.” Mirroring the increase in global wealth that has simultaneously multiplied the number of HNWIs since the new millennium, the growth is also evident in the variety of brands as well as global locations. Mr. Graham highlights how market participants have expanded beyond traditional hotel brands, now spanning a wide variety of sectors (and which he accurately predicted will continue to broaden). Companies licensing their brands to luxury residential real estate now include automotive manufactures (e.g. Porsche, Aston Martin, Lamborghini), interior designers (such as WWW.CBNME.COM
Chris Graham, Consulting Partner, ESRAR Real Estate Consultancy
YOO), “Starchitects” (renowned global architects like Gensler, Foster+Partners, WATG), fashion and jewellery (highend consumer brands such as Bvlgari, Versace, Missoni, Fendi, and Armani), restaurants (e.g. Nobu and Hard Rock) and media / entertainment companies (e.g. Paramount, Walt Disney, Fashion TV, and now high-end publisher Condé Nast). However, with so many brands from an ever-widening spectrum of sectors now participating, differentiation, relevance and positioning are essen-
tial. “As the branded model progressively becomes the norm rather than the exception in many destinations,” comments Mr. Graham, “it is crucial to ensure that today’s wealthy homebuyer understands how one brand will benefit his or her lifestyle and investment ambitions over another.” Many experts agree: “In an increasingly congested market, the winning brands will be those that can seamlessly manage the residential experience for the homeowner,” adds Muriel Muirden, Managing Director of Strategy at
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// TALKING POINT
WATG and a leading expert on global branded residences. “This is why established luxury hotel brands with proven hospitality credentials and world-class reputations can shine in the residential arena,” says Chris Graham, who has worked with numerous luxury developments around the world over the past two decades. “It is no longer simply about bricks, mortar, marble worktops and gold-plated taps; it is much more about the superior quality of life that residents will experience and how the brand can deliver these,” he explains, adding that this extends into security, wellbeing and sustainability, which are now increasingly important considerations for 21st century homebuyers. “On the important and topical issue of sustainability, rising consumer awareness about the serious threat to the global environment caused by noneco-friendly products and processes is forcing real estate developers and hospitality companies to pay much more than merely lip-service to it.” Whereas the preferred choice of accommodation among wealthy Saudi families is villas, increasingly residents and ex-pats are embracing the convenience of high-rise luxury living, which has spurred growth of luxury residential towers in major cities across the Kingdom. Although most are not branded, they have introduced the concept of lateral elevated living and are paving the way for luxury branded condominiums in the region, mirroring the extraordinary growth seen in neighbouring GCC countries. A growing trend among wealthy purchasers is for the practical convenience offered by spacious vertical living. “We are certainly seeing more supersized apartments,” observes Mark Davison, Head of Design at world-leading developer of branded real estate YOO, which works with legendary designer Philippe Starck. “These appeal to wealthy clients that like the convenience and security of spacious, lateral living - especially 18
Benefits Associated with Owning a Branded Residence
• Prime location • Cutting-edge design, technology, security and architecture • Trust, credibility and prestige associated with a luxury brand • ‘Trophy’ status of owning a 5* home in the best location • World-class leisure facilities • Stronger resale values • Higher rental income • Professional management • Hassle-free ownership • Premium/luxury lifestyle • 24/7 concierge services • Owner benefits, e.g. residents’ discount card, privileged access to the brand’s other properties • Like-minded neighbours – a community of peers
with the added benefit of in-house concierge and housekeeping services on hand so they do not need to keep large numbers of staff, such as would be required in a stand-alone home.” “We detected a shift in the market whereby more wealthy families desire all the premium facilities, service and security that are associated with modern condominium living, but they have no wish to compromise on space,” comments Arun Pathak, Managing Director of WelcomHotels Lanka, whose ITC branded Sapphire Residences in Colombo include some of the largest
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apartments seen in South Asia (including two 19,000 sq ft penthouses). “This is why we created the concept of Sky Mansions. These mega-sized apartments are specifically designed to enable whole families – and, if required, their staff - to live in unrestricted comfort, enjoying similar spaces that they would have in a standalone villa, but with the added benefit and convenience of extensive leisure facilities on their doorstep. It offers the best of all worlds.” So, does having a renowned 5* name over your door really justify the higher price tag? “Well, if you look at the astonishing growth in the number of branded residences around the world, clearly large numbers of wealthy homebuyers consider that the numerous benefits that they deliver are indeed worth the extra cost,” says Chris Graham. “Fundamentally, luxury brands provide reassurance in terms of quality, design, maintenance, service and management of the residences; buyers know what they can expect. An established brand’s involvement implies a superior level of protection against risk, giving added confidence to buyers.” He points out that this is particularly relevant when buying an off-plan property, as purchasers know that it is likely to be completed, equipped, furnished and managed to the high standards that are commensurate with that brand. “It is all about peace of mind, which is a rare and valuable commodity in this day and age.”
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// COVER STORY
CBNME recaps the stringent measures taken by the construction industry to keep people safe, to relief packages, and how this could change the way future projects are developed
AL NABOODAH OUTLINE RESPONSE MEASURES TO COMBAT COVID-19 With over 10,000 employees, 6,000 of whom are accommodated in the Group’s own residential facilities, responding sufficiently to the health crisis has represented a significant logistical challenge for the HSE and Facilities Management teams. In an exclusive statement to CBNME Swaidan Saeed Juma Al Naboodah, Managing Director, Al Naboodah Group Enterprises said: “At Al Naboodah Group Enterprises, we always place the health and well-being of our employees as a top priority, and during times of crisis this is no exception. The COVID-19 pandemic has created an unprecedented challenge for our HSE and Facilities Management teams, and they have responded accordingly with a comprehensive range of measures designed to limit the spread of 20
Coronavirus and ensure the safety of our employees. Our Rapid Response Team has also worked tirelessly to implement our business continuity plans in order to ensure that we can maintain critical functions and operations. This includes establishing back-ups for essential skills and materials, and remote working protocols with secure access to our company networks and teleconferencing capabilities.” The teams rose to the challenge, with a COVID-19 Management Plan
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established on March 10th, and implemented within days across all of the Group’s offices, showrooms, yards, worksites, accommodation and facilities. Concurrently, a Rapid Response Team was formed comprising representatives from departments across the entire Group, including Sustainability, HSE, Facilities Management, Group IT, and Marketing & Communications. Reporting directly to the Group’s Managing Director, the Rapid Response Team has been tasked with coordinating the
response of the Group’s many businesses and departments to the crisis based on their individual needs, and ensuring that consistent and accurate messaging is conveyed to all stakeholders. Almost immediately, remote working drills were conducted to assess the robustness of the Group’s VPN solution under heavy usage. After successful drills, senior management approved a work-from-home policy for staff deemed capable of working remotely. ADDITIONAL MEASURES TAKEN SO FAR WITHIN THE GROUP INCLUDE: • Issuing of regular communications on preventing the spread of COVID-19, including display of posters on noticeboards in multiple languages promoting good hygiene and guidance on steps to take in the case of a suspected infection. • Increasing cleaning and disinfectant regimens across all offices, show-
WWW.CBNME.COM
rooms, yards, sites and accommodations, paying particular attention to door handles, taps, keyboards, mouse, telephones, equipment, washrooms, and anywhere there is regular hand contact. • Deployment of hand sanitiser dispensers across all common areas and prominent places, along with posters encouraging regular use. • Deep cleaning and disinfecting of all staff and worker transportation after every journey, with particular attention to hand holds, handles, seats and seatbelts. • Extension of working hours of medical facilities and clinics within Employee Villages, with additional resources to respond to potential outbreaks where necessary. • Coronavirus isolation and observation areas established to quarantine those considered to be at risk of infection, with medical provisions and
staff provided to constantly monitor and assess. • Separate catering provisions with increased health and hygiene measures to be provided to quarantine areas. • Routine screening of all employees with digital infrared thermometers and visual observation. Employees displaying any symptoms are isolated immediately. The Group’s various businesses and departments are reporting to the Rapid Response Team in real time, and adjustments are being made daily to respond to ongoing developments. It is also monitoring the websites of the Dubai Health Authority, the Ministry of Health & Prevention and the World Health Organisation, among others, to keep abreast of the latest news and information. These health measures and responses to the COVID-19 crisis may change based on new developments.
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// COVER STORY
KHIDMAH OFFERS DISCOUNTED DISINFECTION AND SANITIZATION SERVICES TO HOMES AND BUSINESSES Khidmah, Aldar Properties’ wholly owned facilities management business, announced that it will be offering discounted disinfection and sanitization services for homes and businesses across Abu Dhabi through the coming period. This is part of Aldar’s recently announced programmes worth AED 100 million aimed at supporting its residents, tenants, customers and partners. Abdulla Al Wahedi, Khidmah Chief Executive Officer, said: “To cope with the current environment, and driven by its wise leadership, the UAE is taking decisive steps to support communities and businesses. As such, we are compelled to play our part and offer our expertise to help residents and commercial tenants disinfect and sanitize their homes and workplaces at discounted rates.” “Residents can rest assured that they will not need to leave their premises during the sanitization and disinfection process as our technical team will utilize odourless, organic cleaning products certified by the Environmental Protection Agency. We have also applied a strict cashless payment policy in line with heightened hygiene guidance.” We have also rolled out its own internal preventative measures to safeguard its employees and customers from infection, including disinfection and sanitization of workers’ accommodation and buses and conducting daily employee health evaluations. The company has also used the Khidmah Training Centre to train its technical team on the procedures and specific 22
Abdulla Al Wahedi, Khidmah Chief Executive Officer
products to be used in order to strictly follow all hygiene guidance provided by the UAE authorities and the World Health Organization among others. Khidmah focuses on providing facilities management and home maintenance solutions across different sectors
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including residential, commercial, retail, government, education, hospitality and healthcare. Services include integrated facility management, landscaping, cleaning, home maintenance, pest control, handyman services, energy management and many more.
LOOTAH BCGAS AND DUBAI CHAMBER ANNOUNCE AED 15mn COVID-19 SUPPORT PROGRAMME Lootah BCGas, a subsidiary of S.S. Lootah Group, the leading provider of gas utility and infrastructure services in the United Arab Emirates, announced a Covid-19 support programme worth AED 15 million in cooperation with Dubai Chamber of Commerce and Industry. The programme aims to support Lootah BC Gas’s residential and commercial gas utility customers in the UAE to face the challenges arising from Coronavirus (Covid-19). Eng. Yahya Lootah, CEO, S.S. Lootah Group, stated that Covid-19 support programme is in line with His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of UAE, and Ruler of Dubai, to unite efforts to support business continuity and stimulate the UAE economy. “Lootah BC Gas has a long standing corporate social responsibility programme that supports sustainability in business community and society. We are glad to work in cooperation with Dubai Chamber of Commerce and Industry to stimulate the contribution of the private sector as a true partner in supporting government measures to mitigate the impact of the Coronavirus (Covid-19) on various economic sectors” Lootah added. H.E Hamad Buamim, President & CEO of Dubai Chamber praised Lootah BC Gas’s initiative, which comes at the right time and reflects a high degree of responsibility, stressing that this is not the first time the company has proven its high standards in the labour market, and its reputation as a responsible institution, serving the community with its various initiatives. “The private WWW.CBNME.COM
Hamad Buamim, President & CEO of Dubai Chamber
sector is a partner in dealing with such challenges, and its efforts and initiatives complement the effective governmental measures to counter the spread of Coronavirus. The private sector must continue to show solidarity and cooperation to overcome these challenges, moving forward,” Buamim remarked. Lootah BCGas’s Covid-19 support programme includes a package of direct financial support measures that benefit more than 50,000 residential customers as well as nearly 500 commercial establishments, most of which operate in the tourism sector, such as hotels and restaurants. The financial support package includes discounts of up to 20% on gas consumption.“ Lootah BCGas is committed to supporting cus-
tomers and business partners to meet the challenges imposed by the current circumstances, in order to enhance their ability to fulfil their obligations, especially towards their workers in order to protect the skilled work force and maintain business continuity,” Lootah said. These financial support measure will be provided over a period of three months to both residential and commercial customers through a dedicated team operating out of the company’s call centre in Dubai. “We are committed to maintain the safety and health of our customers, employees and the wellbeing and stability of their families, as a true guarantee of business continuity,” Lootah added.
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// COVER STORY
Benoy Kurien, Group CEO, Al Hamra
AL HAMRA ANNOUNCES RELIEF INITIATIVES TO MINIMISE IMPACT OF COVID-19 IN RAK Al Hamra has created an economic relief package which includes several initiatives to help ease the financial burden of its valued mall tenants, freehold owners, residents and customers, impacted by the Covid-19 outbreak. The announcement is in line with the UAE Government and Ras Al Khaimah’s objectives to support the economic environment and boost financial stability. The initiatives include up to 3 months rental relief, reduction in cooling consumption charges, deferral of fees, waiver of payment delay penalties and payment due date extensions. Dedicated teams have been deployed to assess specific requirements of various businesses and individuals to provide 24
economic relief and support. The tasked force is also reassessing cost-effectiveness of operations in order to pass on the benefit to the end users and customers. Benoy Kurien, Group CEO of Al Hamra, said: “We have been proud partners in shaping the real estate landscape of Ras Al Khaimah and this pride comes with a responsibility to the Emirate as well as to our partners and consumers who have contributed to our success. This pandemic is reshaping the way we think about community and has made one thing strikingly clear: our interdependence. We are working closely with our stakeholders to ensure that we recover from this period together, stronger and more resilient.
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“We understand the predicament faced by all and the impact of the Coronavirus outbreak on our economy. During these unprecedented times, we, are more committed than ever to stand firmly by our valued partners and customers. Our initiatives aim to support business continuity by offsetting some of the impact, and to promote the welfare of the community. Our dedicated teams will reach out to our partners in the following days to understand and discuss their requirements and implement effective measures. We will continue to support the government, our customers and partners in all ways possible to overcome this challenging situation together.”
COVID-19 WILL CHANGE REAL ESTATE DESIGN AND PROPERTY MANAGEMENT IN THE SHORT AND LONG TERM Lootah Real Estate Development noted the ways in how real estate can change due to the threat of the coronavirus disease (COVID-19) pandemic—listing down its immediate solutions while advising longterm measures developers can do. As the UAE implements various measures to combat the spread of the disease, Lootah runs down the changes they have done, as well as recommends long-term solutions other real estate developers could observe to combat COVID-19. For short-term solutions, Saleh Abdullah Lootah, Lootah’s CEO, said they have focused on stricter sanitation measures both for its occupants and staff. These include the provision of hand sanitisers in high traffic areas, limitation of people in elevators to ensure social distancing, placement of posters promoting health and safety, disinfection of surfaces that are frequently touched (flat surfaces, lobby desks, countertops, kitchen areas, electronics, elevator buttons, doorknobs, etc.). It has also temporarily closed its amenities like gym, pools, sauna & spa as per the UAE guidelines in all of its properties. As an industry leader, Lootah also advises his peers from the industry to observe a healthy and hygienic environment by implementing these measures to further improve the quality of living for its investors and community. “Small initiatives like adjusting indoor environments and improving ventilation, temperature and humidity can have a positive effect against viruses. WWW.CBNME.COM
Saleh Abdullah Lootah, Lootah’s CEO
While social distancing seems to be the temporary immediate action, I believe it is reasonable for the real estate community to collaboratively think about solutions that incorporate preventive measures,” added Lootah. Lootah has also advised other industry leaders to think of long-term plans to guarantee the safety of everyone against the disease, such as the development of buildings with contingent designs that may act as preventive measures in the future.
Such measures, he advised, may include touch-less technology in the buildings—wherein there could be automatic sliding doors and voice-activated elevators. He added that another measure that could be implemented in real estate is the installation of heat map detectors to scan the temperature of each visitor at the building entrances. Lootah also recommended re-modelling the vent system of the building that involves air purification measures.
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SULTAN BIN ALI AL OWAIS REAL ESTATE ANNOUNCES RENT WAIVER FOR TENANTS AMID COVID-19 Sultan bin Ali Al Owais Real Estate announced a 45 day rent waiver to assist its tenants manage the economic effects of COVID-19. The Company that specifically develops properties to rent, and owns and manages a portfolio of over 3000 properties across the UAE is known for its emphasis on its long-term rental ethos and retention of residential tenants exceeding 20 years.
The decision came in line with prevailing global conditions resulting from the Corona Virus pandemic. “Tenants that have been with us for decades are practically family for us. While battling the spread of Covid19 is the responsibility of every UAE resident through Social Distancing and other measures, we just want to make sure that our tenants have one less thing to worry about during these difficult
times,” said Haleema Al Owais, CEO, Sultan Bin Ali al Owais Real Estate Sultan Bin Ali Al Owais Real Estate was established in 1972 and has grown to become a prominent real estate company since. The company operates as a holistic conglomerate with all functions of rental real estate like Facilities Management and Security under its own umbrella through its offices in Dubai and Sharjah.
AL-FUTTAIM PROVIDES UP TO THREE MONTHS’ RENT FREE SUPPORT FOR ITS MALL TENANTS WORTH AED 100mn Al-Futtaim Group announced that it will be making a substantial contribution to ease the financial burden of its retail tenants by offering a fund of AED 100 million to help its retailers affected by business disruption and slowdown due to the COVID-19 pandemic. The fund will cover up to three months’ rent relief for eligible tenants across its malls in an effort to aid the recovery of their businesses in the UAE. Over the last week, a taskforce has been established to examine how AlFuttaim could support its retail tenants as COVID-19 forced most residents of the UAE to spend more time at home. The team was tasked with quickly developing effective measures to help the 26
affected tenants. Timothy Earnest, Group Director, Al-Futtaim Malls commented: ‘In these unprecedented times, we understand the difficulties faced by the businesses and the impact this current situation is having on our economy. As a business deeply attached to the wellbeing of the UAE, we have a role to play and have
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committed ourselves to finding ways to support while the malls remain open. We hope this contribution will help pave way for business continuity in this difficult environment.” He added: “Our tenants are of utmost importance to us always, but even more so in this challenging time. It is our duty to provide guidance and assistance to them in this time of need. All tenants will be contacted in the coming days by dedicated mall teams to discuss their individual requirements and process for relief.” Al-Futtaim Group’s mall portfolio in the UAE comprises of Dubai Festival City Mall and the newly opened Festival Plaza mall.
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// PROJECTS
PROJECTS IN SAUDI ARABIA CBNME looks at the latest projects currently underway in Saudi Arabia. This month, thanks to our intelligent partner ProTenders, we look into in detail of the Noble Quran Oasis Museum and Serafi Mega City projects
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SERAFI MEGA CITY The project's scope of work consists of four mixed-use towers located at Tahlia area of Jeddah, Saudi Arabia. The development includes a 24-storey 5-star hotel, 2 office towers each comprising 25 floors and a 4-storey shopping mall, restaurants with a podium, parking facilities and infrastructure works. Apart from the standard accompaniments, the complex will house the country's first IMAX theatre and have a restaurant located on the bridge linking the two towers at a height of 160 meters. upon completion, the twin towers will be the tallest structures along the Red Sea coast.
PERCENTAGE COMPLETE
97%
FACTS • Built-Up Area: 200,000 m² • Budget: $205M • Period: 2006 - 2020 • Plot Size(m2): 450000.0 • Structures: 4 • Hotel Stars: 5
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// PROJECTS
NOBLE QURAN OASIS MUSEUM The project's scope of work consist of a museum located along King Salman Road, Madinah, Saudi Arabia. The project includes construction of 'The Holy Quran Oasis' which will be a cultural center and a specialized 100,000 square meters (m2) museum that includes main entrance, museum shows, quran research center, hall of (hymns, quran stories, miracles, sciences of the Koran, Quran and Muslim arts, children's hall, visiting hall and exhibition hall), quran library, administration office, special teaching sections for men and women, conference center, research center for Quran studies, research department, restaurants, visitor’s facilities, open parks, shopping, services areas, car parking, warehouse, related facilities and interactive audio-visual presentations on the most important topics related to the Holy Quran, accompanied by data and information integrated in a way that makes this Oasis a world-class cultural and knowledge landmarks. The project aims to link the historical past of the Holy Quran with the stage of starting towards the future, finding a means of communication and an educational institution offering all the topics in relation to the Holy Quran by means of presentation for all age groups, in addition to preserving the heritage of the Holy Quran. The Qur'an Oasis, which will serve both academic and recreational purposes, will also display more than 3,000 rare manuscript copies of the holy book.
PARTICIPANTS PERCENTAGE COMPLETE
37%
• Al Madinah Al Munawarah Development Authority
• SCTH
• Ministry of Islamic Affairs
Endowment Dawa & Guidance Affairs
• Saud Consult
• Rafael de La-Hoz Arquitectos • Gerber Architekten • PACE
• Jamal Abdul Fatah Jaroudi Contracting Establishment
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FACTS • Budget: $200M • Period: 2014 - 2021 • Plot Size(m2): 200000.0 • Structures: 1
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// OPINION
WOMEN WHO BUILD
With the UAE’s construction sector expected to grow by up to 10% in 2020, female recruits can play a key role in helping solve one of the industry’s biggest challenges, writes Morgan Tuckness, Head of Technical Services & Development - Global Hospitality at Drees & Sommer
While the number of women working in the construction sector worldwide has risen proportionally over the past decade, the stereotypical image of men on worksites and in corporate boardrooms is still a fair reflection of the reality for our industry. Gender equality has become a hot topic in the construction sector in recent years, reflecting a broader societal demand that women can and should play bigger roles in industries that are traditionally male dominated. No doubt negative stereotypes persist 32
among men working across all levels of the construction industry, which makes our challenge as female professionals all the greater. Yet, with the industry facing a looming skills shortage, the onus is firmly on employers to recruit capable and ambitious staff regardless of their gender. The UAE’s construction sector is facing a significant human resources challenge in this respect. With the projects market forecast to grow by up to 10%, as per KPMG’s Annual Global
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Construction Survey in 2020, the current skills shortage poses a threat to contractors striving to meet challenging deadlines. According to KPMG’s annual Global Construction survey, while 53% of industry leaders surveyed in the UAE were optimistic about the coming year, 44% of respondents cited time and cost overruns respectively as the biggest hurdles facing capital construction projects currently underway in the Emirates. Women can play a major role in
meeting this skills shortage and reinvigorating construction workforces. Recent research published by the UN’s Women’s Empowerment Principles (WEPs) initiative estimates that ending discrimination against female workers can enhance overall workplace productivity by up to 40%. Many of the industry’s biggest players are slowly embracing this ethos and we have witnessed a shift in the level of effort and focus when it comes to gender balance in the workplace. This is reflected in the increasing number of female professionals employed in the construction sector, albeit, many in entry and junior-level roles. However, the lack of women working in mid-tier and senior roles reflects the greater challenge facing those trying to push through our industry’s glass ceiling, which is not moving as fast. Further exacerbating the challenge facing women aspiring to a career in the construction sector are the lack of employment policies designed to help them forge a successful path in our industry. Given the historically larger male
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talent pool that exists in our industry, employment applications made by men will, at least for the foreseeable future, outnumber those made by women. To redress this imbalance, employers should be urged to adopt a policy designed to ensure female candidates are better represented during the interview process, one way to do this is to make sure job postings are not pulled down until there is a female candidate. Another major issue facing both men and women working in the construction industry is the lack of realistic and flexible HR policies. Employers should be urged to adopt a more dynamic approach to supporting working parents in the industry. Traditionally, there has been a significant drop-off in the number of women working in mid-level professional positions in our industry when they marry and decide to start a family. By providing more flexible working conditions and benefits for two-person working households we will create equitability. This should not be perceived as a symptom of entitlement – it’s more a case of trying to create a conducive
work environment for both male and female professionals, which I believe will lead to a better gender balance in construction workplaces. Having spent the past 15 years forging my own career in this industry, I am encouraged by the growing number of women working in key roles. For those women considering their own career in construction, I would urge them to be tenacious and confident – it is a challenging path, but there are so many amazing opportunities here in the Middle East and women shouldn’t be discouraged by being in the minority. I would also encourage them to seek a mentor and take advantage of the growing number of networking opportunities that now exist for female construction professionals in the region. We all need an advocate. Lastly, I urge all of my female colleagues to maintain the pressure on employers and remind them about commitments they have made about hiring women and promoting a healthier gender balance and fostering diversity and inclusion.
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// TRUCKS
SCANIA CBNME caught up with Erik Bergvall, Managing Director at Scania Trucks, to discuss about the company’s prospects for 2020 and how their new truck generation is a game changer for the industry.
2020 Targets for Scania Middle East for 2020 are to grow in all markets, enter new segments and extend our product and service offering in the region. We aim to take the lead in sustainability by providing our customers not just with the product but complete sustainable transport solutions. NEW TRUCK GENERATION The New Truck Generation is a result of ten years of development work and investments of over two billion Euros, 34
Scania has made significant improvements in this and some of them are highlighted below• New design and shape of the front and chassis for improved aerodynamics • Powertrain updates resulting in exceptional fuel efficiency and driving performance • Extended storage options • Enhanced driver’s seat adjustment options • Maintenance based on your operation, increased uptime and profitability
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• Unique safety features such as roll-over curtain side airbags, Stability Control, Active Emergency Braking (AEB), Electronic Braking System (EBS), • Adaptive Cruise Control (ACC) and Lane Departure Warning (LDW) • More space behind the seats for wider beds • New infotainment system with 7” touch screen • The Scania Opticruise automated gearboxes now feature a layshaft brake for even smoother and much
faster gear shifting, actually twice as fast when shifting up. And as option we also have a version with a clutch pedal that can be used on demand when you really need it, for example when manoeuvring in tight environments. • We have also improved our road handling and the brake performance by 5% We offer the widest range of alternative fuels in the industry – Hybrid, Bioethanol, Natural gas (CNG/LNG), Hydrogenated vegetable oil, Biogas and Biodiesel. Which one of them is the best alternative for you depends on the character of your business. Apart from the New Truck Generation, in 2019 Scania introduced its first prototype Autonomous Bus and truck – the Scania NXT and AXL. The Scania NXT is the new battery electric selfdriving urban concept vehicle designed to ferry commuters in the morning, WWW.CBNME.COM
deliver goods during the day and collect refuse at night. The Scania AXL is a fully autonomous cabless concept truck built for mining and construction sites. With the Scania AXL and NXT, we are taking significant step towards the smart transport system of the future, where self-driving will play a natural part. TECHNOLOGY AND INNOVATION Every Scania we’ve put on the road in the last decade has been full of smart technology, advanced sensors and wireless connectivity – which means that we have hundreds and thousands of constantly connected vehicles and engines in use all over the world today. The main reason to all of this is Data, there is no better way to improve something than analysing it real world usage. With the Scania Fleet Management system, you can get both information and insights – a lot more of it than our free monitoring reports. All constantly updated and available 24/7.
Safety is also another feature we heavily invested into, with the 360 degree HD view camera system you can park, load and manoeuvre through traffic much safer. The Adaptive Cruise control helps keep a safe distance from surrounding vehicle when cruising. This has been improved to handle speeds all the way down to stationary, making cruising safer and easier even in traffic jams. The side detection feature increases safety by detecting objects in blind spots. It consists of 2 systems – Vulnerable Road User Collision Warning and Blind Spot Warning. CHALLENGES Most markets in the Gulf are still suffering due to the heavy fall in the construction sector which has affected all suppliers of heavy duty trucks. Also Oil & Gas segments are still under pressure. We hope to see improvements in the next year within these sectors as they represent a major share of the heavy truck sales.
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// REVIEW
CONEXPO-CON/AGG 2020 CONEXPO-CON/AGG is North America’s largest construction trade show. Held every three years in Las Vegas, this massive event features the latest equipment advances and newest technology applications in every aspect of construction.
CONEXPO-CON/AGG EXPLORES THE FUTURE OF CONSTRUCTION
Whether it is artificial intelligence, autonomous equipment, big data, small gadgets, new energy technologies, sustainable highways or the future of cities themselves, CONEXPO-CON/ AGG/s Tech Experience focuses on what contractors and manufacturers need to know to keep ahead of the technology curve. “I’m amazed at what some of the minds we have here at the Tech Experience think up,” said Helen Horner, Director of Education Programs at the 36
Association of Equipment Manufacturers (AEM), the organization that coowns and operates CONEXPO-CON/ AGG. “What we’re seeing in bringing all these ideas to one place is how some of them connect to form new ideas. Hopefully, those ideas germinate after the show to give us even more amazing technology to explore at the next CONEXPO-CON/AGG.” One example was a Tech Talk on wireless energy transfer built into roadways to continuously charge electric
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vehicles while they drive, followed by a talk on turning concrete into a battery. “New ideas and new connections are the core of what we want people to experience at CONEXPO-CON/ AGG,” said Show Director Dana Wuesthoff. “The big iron and big deals are definitely fun, but the technology, information and education are what secure the future of this industry, and the continuing viability of the businesses that attend and exhibit here.”
CASE PREVIEWS NEW TECHNOLOGY ENHANCEMENTS FOR G SERIES WHEEL LOADERS CASE Construction Equipment previewed all new enhancements at CONEXPOCON/AGG 2020 to its G Series wheel loaders that feature increased technology to improve production and the overall operating experience. These latest enhancements (standard or optionally fit based on feature) are anchored by a large touchscreen display that serves as the command center for the new integrated onboard payload system, control customizations, improved telematics and streamlined operating parameters. “Wheel loaders are well-suited to incremental improvements in technology and operation that achieve considerable cost savings and productivity gains,” says Andrew Dargatz, product marketing manager, CASE. “The technology advances incorporated into G Series wheel loaders through the new operator interface simplify operation,
streamline equipment reporting and maintenance activities, and give each operator more tools to improve overall performance and efficiency.” These wheel loader technology enhancements will further benefit from the launch of the new CASE North American Uptime Center — a remote monitoring control center where customers who opt in can have their
equipment monitored in real time by CASE service technicians. The goal of the Uptime Center is to connect CASE, its dealers and customers with meaningful and actionable operating data — and G Series wheel loaders with the new 4G modem and other tech advancements/improvements will be one of the first CASE product lines to benefit from this capability.
WIRTGEN LARGE MILLING MACHINES IMPRESS INDUSTRY AT CONEXPO-CON/AGG 2020 The high-performance W 220 Fi and W 250 Fi models, the flagships of the new generation of machines, particularly impressed the industry audience during their world premiere. Like all of the large milling machines in the new F series, they set standards when it comes to milling performance and machine efficiency, primarily thanks WWW.CBNME.COM
to the innovative Mill Assist machine control system. This is because Mill
Assist helps the milling machine operator optimize machine performance and significantly reduce diesel, water, and pick consumption as well as CO2 and noise emissions. Practical experience shows that users already use Mill Assist more than 90% of the time their machine is in operation, significantly cutting costs as a result.
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// REVIEW
GENIE SHOWCASES NEW S-80 J BOOM AT CONEXPO 2020 A new addition to the next generation of Genie® S® telescopic boom lifts, the Genie S-80 J model is a higher reaching version of the recently introduced Genie S-60 J model. These new Genie telescopic booms are right-sized for completing work-at-height applications and provide the essential performance that operators need to get work done at height from a jibbed boom. The Genie S-80 J model has an unrestricted platform capacity of 660 lb (300 kg) to get the job done with two occupants, plus tools, and a 6-ft (1.8 m) jib, leading length and capacity for low-weight booms in this height category. With a platform height of 80 ft (24.4 m) and horizontal reach of 55 ft (16.8 m), this new boom provides operators with access where it’s needed — at the top of the envelope. “This second model introduction in the Genie essential performance boom line offers rental companies
the opportunity to increase their rental return on invested capital (rROIC) by mixing their fleets with a variety of Genie booms, matching the right boom to the right application,” says Sean Larin, Genie Product Manager, Terex AWP. According to Larin, within a rental fleet, the Genie S-80 J model complements the popular heavy-lifting Genie S-85 XC™ (Xtra Capacity™) model, which is well-suited for heavy trades work. For example, Genie S-80 J man lifts are ideal for completing work-at-height jobs, such as: • General construction • Maintenance • Inspections • Painting And, Larin says, Genie S-85 XC work lifts are well-suited for performing heavy-lifting work, like: • Commercial and industrial construction • Structural, electrical and plumbing • Specialty applications
MASS-PRODUCED INNOVATION FROM THE WIRTGEN GROUP The North American premieres of Vögele’s WITOS Paving Docu, Hamm’s HP 180i tired roller, and Kleemann’s MOBICAT MC 120 Zi PRO jaw crusher also underscored the group’s position as the innovation driver and technology leader in the road construction sector. The Wirtgen Group Technology Center, where visitors could learn about the specialized product brands’ application technologies in more detail, was also extremely popular. 38
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