June 2018
THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS
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ARADA's Ahmed Alkhoshaibi on how the developer is having a success run with its unique products for the Sharjah real estate market
P30 - Key highlights from Cityscape Abu Dhabi
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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
JUNE 2018 // Issue #40
8 Ed Note 12 News 22 Comment
Bentley Systems’ Ashish Kumar talks about creating economical designs with technology
24 Comment
Chloe Hilton at Pacific, Al Marjan Island highlights the rising popularity of Ras Al Khaimah
26 Cover Story
ARADA’s Ahmed Alkhoshaibi talks about the developer’s plans and strategies for Sharjah
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construction business news me // June 2018 //
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CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@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
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30 Event review
CBNME presents key highlights from Cityscape Abu Dhabi 2018
36 Interview
Pierre Santoni from Parsons talks about the role of technology in the growing infrastructure projects
40 Site visit
CBNME visits Emaar South to check the construction progress of Phase I, scheduled for delivery mid next-year
68 Editor’s Pick 70 Diary
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 50 440 2706 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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// construction business news me // June 2018
It fits, but will it do the job?
Steel. It’s hard to tell the difference just by looking at it, but there are actually thousands of different grades of steel. The Volvo Tooth System has an optimal specification and a high-end design for a premium performance in the toughest conditions – specifically made for your Volvo. We spend years of research and testing to produce the parts that make your Volvo deliver the highest productivity and profitability, over and over again. Stay genuine – Genuine Volvo Parts. volvoce.com
// Editor's note
editor’s note
A steady approach
We are currently halfway through the holy month of Ramadan which is a time for self-reflection for people. Nonetheless, the GCC construction sector has always been concerned about a drop in its productivity levels, which has led to slowdown in the sector in the past years as well. Most construction companies have reduced their working hours for labourers, following the policies of not working for more than eight hours in both day or night shifts. Midday breaks prohibit the workers from working under direct sunlight when the temperature is at the highest. However, business goes on as usual; progress on the under-construction projects are going on at the same pace. According to a recent survey by Turner & Townsend, the whole Middle East region stands to benefit from the stabilisation and steady increase in
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oil prices. In the UAE, construction spending has been held up by government investment in infrastructure ahead of major global events in the coming years such as Expo 2020 Dubai. In addition to this, let me also give you a small brief about our upcoming July issue, slated to be one of our biggest issues in 2018. 'Power Hour', will feature 60 influential and top league players from the construction and the real estate sectors in the GCC. The ranking will be based on their overall performance in the past year as well their backlog of completed and ongoing projects. I would urge all the industry players in the region to actively participate in our quest of applauding the top performers in the market. Well, as an ending note, I wish all our readers a very blessed Ramadan Kareem and Eid Mubarak!
// construction business news me // June 2018
Paromita Dey Editor paromita@bncpublishing.net @paromitadey1 linkedin.com/in/paromita-dey
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// Update An update from around the region
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Construction
Nakheel posts 5% rise in Q1 2018 net profit
Dubai developer Nakheel made a net profit of AED1.55bn in the first quarter of 2018 – up 5% as compared to Q1 2017. The master developer handed over nearly 200 land and built form units to customers during Q1 2018 and sold the last available villas at its new Warsan Village community, with all 934 homes now purchased. Meanwhile, its retail, hospitality, and residential leasing businesses all continued to perform robustly. Between January 1 and March 31, 2018, Nakheel 12
officially signed construction contracts worth almost AED5bn. Among them was an AED4.2bn contract for Deira Mall at Deira Islands, and an AED385mn contract for its first joint venture at Deira Islands – the 800room beachfront hotel and waterpark from Spain’s RIU Hotels & Resorts. Q1 2018 also saw significant construction progress at several Nakheel residential, retail, and hospitality projects, including The Palm Tower, Nakheel Mall, and The Palm Gateway on Palm Jumeirah;
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Deira Islands Night Souk, Deira Mall, and the RIU and Centara resorts at Deira Islands; and Warsan Souk at Warsan Village. Nakheel chairman Ali Rashid Lootah said: “It has been an impressive start to 2018, with our Q1 results reflecting our ongoing delivery and diversification as per our business plan, and our key role in enhancing Dubai’s real estate sector – through a growing range of residential, retail, and hospitality projects – in line with government goals. As ever, we thank our lead-
ers for their continued trust, support and belief in our company.” The master developer recently signed a new partnership with Austria’s largest independent hotel chain, Vienna House, to create a $160mn, 600room beachfront resort at Deira Islands. Under the planned partnership, the two companies will build a beachfront holiday complex – Vienna House Deira Beach – at Deira Islands, Nakheel’s new, 15.3sqkm master planned waterfront city.
Retail
Emaar posts 62% increase in net profits for Q1 2018 Dubai-based developer, Emaar Development, recorded a 62% growth in net profit to AED819mn during Q1 (January to March) 2018 compared to AED506mn in Q1 2017. Revenue for Q1 2018 grew by 95% to AED3.27bn compared to AED1.67bn for the same period in 2017, reflecting strong construction progress focused on timely delivery. The company recorded sales of AED3.91bn in the first three months of the year and now has a total backlog of AED41bn. This highlights the company’s strong fundamentals and robust delivery pipeline of over 27,200 residential units in the next four to five years. In Q1 2018, Emaar Development launched the sale of over 2,500 residential units across its mega-developments with overwhelming response from investors within the UAE and international markets. Mohamed Alabbar, chairman of Emaar Development
and Emaar Properties, said: “With the listing of Emaar Development, our focus was to unlock its true potential and create added value for our shareholders. This is demonstrated by the growth of the business and focus on delivering high-quality projects and service with our customer-first approach. With our new developments, we are bringing exceptional lifestyle choices that meet the aspirations of our new generation through future city hubs that add value to the economy.” In key launches during Q1
2018, the company unveiled Emaar Beachfront, a private gated island destination in the Arabian Gulf, offering residents the opportunity to experience Miami beach style living in Dubai. The launch of the first project Beach Vista was a sell-out success with strong investor response for subsequent project, Sunrise Bay, together recording total sales of over AED1.35bn. With the continued demand for residences in Dubai Creek Harbour, Emaar Development launched The Grand, an exclusive collection of ultra-luxury apartments, pent-
houses, and podium-level townhouses. Emaar also marked significant progress in the construction of Dubai Creek Tower, where as of now, 90% of the pile cap work has been completed. At Emaar South, a joint venture with Dubai South, the developer launched Saffron, its first garden townhouse community. Emaar Development also launched an innovative concept for co-living with Socio and Collective in Dubai Hills Estate, nextdoor to the upcoming Dubai Hills Mall. Socio recorded sell-out response and Collective witnessed strong customer demand. The company has over 10 mega-developments in its portfolio, and its strategy is to maintain its leadership role in prime residential real estate in Dubai, draw on its significant land bank and partner with leading entities to create sustained value for its shareholders.
Abdali Boulevard Company awarded the management of the facilities for The Boulevard project to FM company, EFS Facilities Services.
ISG has strengthened its senior leadership team in the Middle East with the promotion of Scott McCulloch to the role of general manager.
// Bitesize news
Real estate developer, Dubai Properties, launched the third phase of Amaranta in its Villanova community in Dubailand, to be completed in Q4 2020. www.cbnme.com
Developer Lootah Real Estate Development unveiled a new residential project, Lootah Residence II, in International City in Dubai, comprising 100 apartments.
construction business news me // June 2018 //
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// NEWS
Real estate
SHUAA Capital, Jabal Omar sign MoU for real estate vehicles
What we try to focus on in the past few years is to bring a strong differentiation in our services. ” Henrik Ehrnrooth, president and CEO of KONE Corporation
UAE-based SHUAA Capital and Jabal Omar Development Company (JODC) signed a Memorandum of Understanding (MoU) with an aim to launch and manage real estate investment vehicles in Saudi Arabia. Pursuant to the recent MoU between JODC and ADFG, the largest shareholder in SHUAA Capital, to explore opportunities for collaboration and partnerships associated with new developments in Makkah and throughout Saudi Arabia, SHUAA Capital and JODC are now seeking avenues of coop-
eration towards the creation and management of a set of strategic real estate funds directed towards managing the development and expansion of centrally located real estate hotspots across the Kingdom. JODC CEO, Yasser Al-Sharif, said: “We are delighted with the strategic partnership with SHUAA and the potential business that we envisage to develop together, given their track record and experience in real estate in Saudi Arabia. This MoU demonstrates commitment to our strategy to build new
strategic relationships with key stakeholders in the region.” Jassim Alseddiqi, chairman SHUAA Capital, said: “We are delighted to be partnering with Jabal Omar on upcoming real estate investment projects throughout Saudi Arabia. SHUAA’s established record in managing real estate funds and developments within the Kingdom, coupled with JODC’s unique reputation and achievements in building prime mega developments, will help create a favourable and mutually-beneficial partnership model for delivering the highest quality developments and achieve returns for stakeholders.” The alliance between SHUAA Capital and JODC is one of several planned ventures, aimed at securing a pole-position within Saudi Arabia’s growing economy, as part of the Kingdom’s Vision 2030 transformation plans.
// In numbers
10
ABU DHABI VILLA SALES PRICES
Azizi Developments awarded AED559mn contracts for buildings in Azizi Riviera Phase 4 16
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Source: Asteco
Real Estate
Aldar acquires AED3.7bn worth assets from TDIC
Abu Dhabi-based developer, Aldar Properties, reached an agreement with Tourism Development & Investment Company (TDIC) to acquire a portfolio of prime real estate assets worth AED3.7bn in one of the largest real estate acquisitions in the country’s history. Aldar has acquired assets located in key destinations, with a focus on Saadiyat Island. This comprises 14 operating assets within various sectors ranging from hospitality, retail, residential, education, and infrastructure, in addition to a selection of prime strategic land plots and projects under development
on Saadiyat Island. Talal Al Dhiyebi, CEO of Aldar Properties, commented: “Acquiring assets on Saadiyat Island presents Aldar with an unprecedented opportunity to add significant value to its portfolio. The opening of the Louvre Abu Dhabi has demonstrated the government’s commitment to make Saadiyat Island one of the most soughtafter destinations in the world. We believe this landmark acquisition will further advance Abu Dhabi’s real estate sector and accelerate the development of Saadiyat Island, taking it to the next level. This is a very exciting time for the market, and as its leading player,
we’re well placed to take advantage, with the injection of these new assets representing a strong addition to our impressive portfolio.” The operating assets being acquired include Eastern Mangroves complex, Saadiyat Island district cooling assets, Cranleigh School Abu Dhabi, Westin Golf & Spa and other community retail and leisure assets and will deliver an incremental net operating income of approximately AED120mn to Aldar’s Asset Management portfolio on an annualised basis. The gross development value of the projects under development on Saadiyat Island, is AED2.5bn. The land being acquired, located on Saadiyat Island is infrastructure enabled and includes approximately 1.1 million sqm gross floor area. The acquisition is expected to fully complete by end of June 2018 and it is subject to fulfilment of certain conditions.
// They said...
“One of the contributing factors to escalating numbers of disputes in the region is the impact continued low oil prices. ” Rob Jackson, RICS
“I am delighted to be joining the Raysut Group at such an exciting time in the company’s development. ” Ashley Bryan, Raysut Cement
Nshama unveils new apartments in Town Square Dubai Town Square Dubai by Nshama has launched Rawda 2 apartments that are located right by the Town Square Park and offer access for residents to the Reel Cinemas cineplex, and a retail precinct with over 500 retail and F&B outlets, in addition to a range of leisure attractions. With views also opening to the Courtyard and Town Square Boulevard, Rawda 2 comes with an affordable choice for home-buyers, with only 10% upfront payment needed, and the fifth installment to be paid only upon 100% completion. The remaining 40% of the
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total value of the residence may be paid over two years. This means residents can check into their own homes and make the rest of the payments over the next two years. The second and third installments of 15% each are also conveniently paced apart at six-month intervals, while
the fourth installment of 10% comes 18 months from now, after the 50% construction milestone is achieved. Fred Durie, CEO of Nshama, said: “Town Square Dubai has indeed come to life with the first residents moving in, the parks greeting families, and the cycling track serving as their preferred outdoor pursuit. We have put in place a robust infrastructure including one of the largest district cooling facilities serving the community and work on the Town Square Central Park is progressing at brisk pace.”
“We are thankful to our shareholders for their support and trust in us. ” Mohamed Alabbar, Emaar Properties
construction business news me // June 2018 //
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// NEWS
// The big Picture
Conares, the second largest private steel manufacturer in the UAE, has inaugurated its 12’’ pipe mill in Jebel Ali Free Zone (JAFZA). Contracts
Top 5 Web Stories
KONE bags Dubai Hills Mall supply deal
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Ellington begins handover of JVC homes
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Aldar acquires TDIC assets
3
UD Trucks new Quester launch
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Al Farwaniya lays Reem Mall foundation
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Site visit to VOX Cinemas Palm Jumeirah
Finnish group Kone Corporation won an order from UAE developers Emaar Development and Meraas to supply 156 elevators, escalators, and travelators for its upcoming retail destination, Dubai Hills Mall. The mall is ideally located within Dubai Hills Estate, offering easy access to customers from several parts of Dubai. It will feature more than 650 retail outlets, a 6,000sqm supermarket, an 18-screen
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cinema, family entertainment centres, a clinic, spas, and external concert spaces. Sustainably designed, Dubai Hills Estate is a 2,700acre multi-purpose development that will form an integral part of the Mohammed Bin Rashid City (MBR City). It is a unique blend of elegantly-planned neighbourhoods centred around an 18hole championship golf course. As per the deal, Kone will deliver 88 escalators, two inclined autowalks, or travelators, and 66 elevators to ensure smooth people flow for visitors and employees alike. Pierre Liautaud, the executive VP for South Europe, Middle East and Africa at Kone, said: “Dubai Hills Mall will become a key venue for lifestyle experiences at the Dubai Hills Estate. Visitors will expect the highest level of ease and efficiency when moving within the premises, and we are extremely proud that our solutions were selected to support the realisation of this vision.”
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// NEWS
Projects
DP World unit and Monaco partner for marina projects DP World Group subsidiary, P&O Marinas, has announced an agreement with Monaco government-owned Société Monegasque International Portuaire (SMIP) to work on selected marina projects in the Mediterranean and other locations around the world. A MoU has been signed in Monaco to invest, develop, and manage yachting destinations dedicated to superyachts. The agreement was signed by Mohammed Al Mannaei, CEO of P&O Marinas, and Aleco Keusseoglou, chairman of SMIP. P&O Marinas manages the seaside Mina Rashid Marina project, in Dubai. There are three phases – the first, which was launched last November, features 500 quays, and the other two, once finished, will be able to harbour 20,000 yachts. The new marina, which
is called Marina Cube, is expected to be a new tourist maritime and entertainment attraction, stretching over 13sqkm, featuring a number of facilities, including an integrated entertainment city. Mohammed Al Mannaei, CEO – P&O Marinas and executive director – Mina
Rashid, said: “The marinas and superyachts market is a growing part of our business and we are building on Dubai’s heritage and expertise in this sector having already established it as a centre for cruise and marina development following the wise vision and directives
of our leadership. By partnering with SMIP, we will complement each other’s experience to ensure the very best facilities feature high standards and innovative services that create long-term sustainable value to clients, local communities, and shareholders.”
Al Hamra completes Manal Mall expansion Phase 1 Ras Al Khaimah developer, Al Hamra, announced the completion of Phase 1 of the revamped Manar Mall, one of the emirate’s premier retail and leisure destination with a total of 164 international and local retailers, food outlets, and entertainment options. The main construction work is now finished with fit-out work for individual units taking place in stages, some vendors have already started to fit out their branded units. Phase 1 of the refurbishment project is expected to be complete by Q3 2018 when landscaping and infrastructure work for Phase 2 is carried out. Benoy Kurien, general manager of Al Hamra Group, said: “The design
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team have been working tirelessly to get the right look and feel. We’re now
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ready to move to the second phase of development where our focus will be on
securing even more top range brands. “We are creating something exceptional for Ras Al Khaimah and the rest of the Northern Emirates with a diverse retail, F&B and entertainment complex, helping us to realise our corporate vision as the largest and most visited mall in the Northern Emirates.” Once fully completed, the gross leasable area (GLA) will increase from just over 27,870sqm to nearly 55,741sqm, adding an additional 80 retail destinations, including those from the Lals Group, with brands including Homes r US; American children’s brand, Carter’s; the unique lifestyle brand, Daiso Japan; Italian multibrand store, Miriade; and American sports brand, US Polo Assn.
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// Op-Ed
Pushing limits Ashish Kumar, senior sales director, product sales for Middle East and Africa at Bentley Systems, talks about how Dubai engineering firms are at the forefront of creating economical designs
C
reating an economical design project without sacrificing quality or safety is the goal of any engineering team. But, how one accomplishes this can be tricky and often requires innovative design applications. The engineering teams on two construction projects in the UAE needed to do exactly that – meet the budget and deliver a uniquely designed structure. The first is a library with an iconic design that will be a beacon of learning for the community, while the second is a multi-million square foot mall built on a man-made island that will bring in area residents and tourists. Using innovative software from Bentley Systems, both project teams met the goal of the stakeholders and put themselves in a good position to win more work.
A Cultural Centre Like No Other Dubai-based Al Shafar Steel Engineering (ASSENT) needed to design a cost-efficient project while delivering an architectural design that met the needs of its client. The government of the UAE charged the organisation with designing the 66,000sqm Mohammed Bin Rashid Library in Dubai. The project was conceptualised in February 2016, the Year of Reading in Dubai, and hence, is designed in the shape of an opened book on a lectern. The seven-storey library covers 60,386sqm of property 22
High-profile projects are examples of what can be achieved when forwardthinking organisations team with technology partners that can help them meet their goals.” and will host nine million visitors a year. The facility serves as a cultural centre, the largest in the Middle East, and will draw artistic and intellectual initiatives. It will also be linked digitally with libraries around the world to share and retrieve rare, valuable, and difficult-to-obtain sources of information. To develop the imaginative steel elements on the project, ASSENT used Bentley Systems’ STAAD.Pro’s intuitive structural analysis and design software to model the forms. Using STAAD and the streamlined workflow that it facilitates, the team delivered the model to stakeholders ahead of schedule. As a result, ASSENT saved 15% of total structural design resource hours. “Bentley’s technology helps produce economical designs without sacrificing safety and quality,” said Abdelsalam Ahmed, design group leader with ASSENT. “STAAD allowed us to define a complex-shape model and efficiently collaborate with the design team.”
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A Boost to the local economy Located in Palm Jumeirah, an artificial archipelago off the coast of Dubai, the Nakheel Mall is a 418,000sqm complex featuring 42ha of retail and dining space, and will act as an entertainment destination. It includes a hotel, medical center, fitness facility, and movie theatres. It also includes a three-level underground parking structure that accommodates 4,000 vehicles. Located next to the Palm Tower and accessible via the Palm Monorail and near the Dubai tram and metro, the Nakheel Mall will boost the local economy when it is completed. The multi-billion dirham luxury facility boasts a VIP entrance and rooftop fountains with waterfalls that plunge 65 feet into the mall. RASANA Engineering, the only steel contractor hired for the project, was asked to design the steel structure economically and safely, and, much like ASSENT on the library project, without sacrificing quality. To complete this task, RASANA needed interoperable structural design
A rendering of Nakheel Mall in Palm Jumeirah
technology with advanced analysis capabilities. Using STAAD.Pro Advanced for analysis and design of all steel structures, and irregular built-up structures, the project team initially modeled all structures in Trimble’s Tekla analysis and design software, and imported them into STAAD.Pro Advanced for further design and analysis. The direct integration of these two products improved project collaboration and eliminated rework. Indeed, the dynamic performance of STAAD.Pro Advanced accelerated the analysis process and helped RASANA deliver on-time and on-budget construction drawings. “STAAD is the most trusted software for steel structures here in the UAE,” said Jebin Jacob, structural design engineer with RASANA Engineering. “The Design Review Authority only accepts projects that were designed in www.cbnme.com
STAAD [and] we were confident that our design was 100% compliant with local requirements.” Because the technology increased the analysis at a rate that is 100 times faster than normal analysis, STAAD. Pro Advanced helped to reduce costs on many of the steel sections. Moreover, RASANA improved its productivity and design efficiency, increased quality, and shortened the schedule. All of which resulted in a 15% savings in design time. Jacob said: “The flexibility of STAAD allowed us to design this unique structure, which is an exciting focal-point for the community. Modeling with STAAD allowed us to efficiently define a complex model and share, design, and collaborate with the design team.” Integrating STAAD.Pro Advanced reduced the time to design the project, which was originally
budgeted for 7,900 design hours, but ended up needing just 6,656 hours. The flexible modeling environment enabled RASANA to better understand the behavior of the structure more quickly. The software optimised analytical modelling and allowed RASANA to efficiently define a complex model, streamline collaboration, and enhance information mobility among the team to meet project deliverables. These high-profile projects are examples of what can be achieved when forward-thinking organisations team with technology partners that can help them meet their goals. In these cases, the design teams were met with critical challenges that needed to be resolved without increasing the budget or the time schedule. Bentley’s STAAD solution enabled both teams to meet their goals and, best of all, their clients’ expectations.
construction business news me // June 2018 //
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// Op-Ed
Climbing the ladder Chloe Hilton, business development manager at Pacific, Al Marjan Island, talks about the growing popularity of Ras Al Khaimah among investors and end-users
R
eal estate across the UAE, and in particular, Ras Al Khaimah, has been through a transformative change over the past decade, especially in recent years. Once a relatively untapped desert haven, Ras Al Khaimah has utilised its natural beauty to become a preferred destination for holidaymakers, developers, and investors alike; with projects such as Al Marjan Island helping to spur regional and international interest in the emirate, underpinning the growth potential of the burgeoning area. A major contributor to growth in the emirate is the tourism sector, which is improving year-on-year, bolstered by the dedication of Ras Al Khaimah’s Tourism Development Authority (RAKTDA), elevating the emirate to become one of the region’s fastest growing tourism destinations. For 2018, RAKTDA set the prominent target of attracting one million annual visitors; based on Q1 results, it’s likely the emirate is well on track for achieving this goal. As a flourishing tourism hub, Ras Al Khaimah attracts holidaymakers from key international source markets including Germany, Russia, and the UK, with an influx from emerging markets including Czech Republic, Poland, and India. Of course, Ras Al Khaimah’s close proximity to one of the world’s busiest transport hubs at Dubai International Airport is helping to draw visitors to 24
the Northern Emirates, but it’s also important to note that Ras Al Khaimah International Airport has expanded significantly in recent years, too. Regular flights to key tourist source markets include Saudi Arabia, Egypt, Pakistan, India, Poland, and the Czech Republic. It also offers seasonal flights to other destinations, including Latvia and Russia and, with plans to develop routes to more cities worldwide in the future, the airport will help to further facilitate growing visitor numbers each year. It’s not just the tourism market driving Ras Al Khaimah’s development, either. The region has managed to draw thousands of international businesses as a base for their Middle East, Africa, and South Asia operations, attracted by its cost-efficiencies and strategic
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location. A few years ago, fDi Magazine, published by the Financial Times in the UK, ranked Ras Al Khaimah among the Top 10 Small and MidSized Global Cities of the Future, along with the likes of Zurich, Geneva, and Edinburgh, which is something that I believe is really exciting for the region and its potential. In a move that has assisted small and medium-sized enterprises (SMEs) to flourish, the RAK government launched the RAK Economic Zone last year, which is already being recognised as one of the world’s best free zones, with over 13,000 companies already listed in the zone. For businesses, the RAK Economic Zone offers a trading environment free from corporate and income taxes, and the
ability to fully repatriate their profits. But, in what is perhaps the most attractive quality, it’s as much as 50% more affordable than free zones in other emirates such as Dubai, so it’s fair to assume we can expect the zone to continue its upward trajectory of growth in the coming years. Moves such as these have seen Ras Al Khaimah’s economy rapidly expand, being rated as A/A-1 by Standard and Poor’s, and the ratings agency believes the emirate’s fiscal position will remain strong for the foreseeable future – a strong indication of the advancements the emirate is making across a variety of sectors. The shifting business and leisure landscapes are also being reflected in the property market, with investors, holidaymakers, and homeowners from around the world choosing to purchase real estate. Up-and-coming areas include the prestigious, manmade Al Marjan Island, which has recently seen the completion of its first residential development, ‘Pacific’. Compared to the likes of Dubai, property prices in Ras Al Khaimah offer investors affordability, in addition to easy access from airports and other emirates, and the sense of serenity and true relaxation, which can be hard to find in other emirates – it’s a perfectly unique blend of affordability and tranquil luxury. Transforming into a destination in its own right, Al Marjan Island is already home to a collection of fivestar hotels on the island, including the DoubleTree by Hilton, Rixos Bab Al Bahr, and the Marjan Island Resort and Spa, with as many as 15 more hotels in the pipeline. Around 18.5ha of mixed-use projects are also planned by global developer Emaar, including high-end residential projects, hotels, and shopping promenade, which will further draw visitors and buyers from around the world. Savvy investors are increasingly setting sights on the island, with many drawing similarities to Dubai’s own man-made island, The Palm Jumeirah, in which early investors www.cbnme.com
Ras Al Khaimah’s close proximity to one of the world’s busiest transport hubs at Dubai International Airport is helping to draw visitors to the Northern Emirates.”
have enjoyed tremendous returns as the area developed. A current hub for development and progression for Ras Al Khaimah, Al Marjan Island is destined to play a pinnacle role as the heart of the emirate’s booming tourism sector and the wider economy, and thus it’s not unreasonable to suggest that investors could expect similar returns when investing in developments such as Pacific. Setting the standard for properties on the island, Pacific has recently recorded a significant number of Saudi and CIS investors and holidaymakers purchasing the beachfront apartments at affordable prices, with the development presenting an unmissable opportunity to invest early and achieve
impressive long-term growth as interest in the area distends. An attractive real estate proposition for residents, tourists, and investors, I’d encourage those looking to buy in the UAE to consider Ras Al Khaimah as a worthwhile investment, with property on Al Marjan Island a noteworthy consideration. With the emirate promoting itself as a leisure and adventure destination, highlighted recently by the launch of the world’s longest zip-line at Jebel Jais, the continued demand from tourists, investors, and businesses is expected to rise; Ras Al Khaimah offers a story investment proposition for those seeking well-priced properties in the Middle East’s hub, the UAE.
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We carefully assess any opportunities that are made available to us based on their individual merits.� 26
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C h a s in g t h e
v i s i on In an exclusive interview with CBNME, ARADA chief Ahmed Alkhoshaibi talks about the developer’s future plans to boost the real estate landscape of Sharjah
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ccording to the recent Sharjah Property Market Snapshot for Spring 2018 by Cluttons, villas in Sharjah have continued to buck the wider trend of retreating rents in the emirate’s residential rental market, recording an increase of 1.7%, while apartment rents in Sharjah registered a steep decline of 13.6% in rents, in the last quarter of 2017. In addition to it, a trend of new developers entering the Sharjah market has added an exciting dimension to the sector. ARADA, being a new developer itself, has built up a formidable presence for themselves in the market with the launch of Aljada, a master-planned destination, covering over 2.2sqkm that is set to become Sharjah’s largest ever mixed-use development project. Delivered in phases starting from 2019, construction on Aljada began in the first quarter of 2018 and the entire project is expected to be completed by 2025. Aljada is an all-encompassing district that comprises considerable retail, leisure and entertainment options, www.cbnme.com
in addition to a wide range of residential and commercial offerings, such as a dedicated business park. Commenting on the development of the company, Ahmed Alkhoshaibi, CEO, ARADA, says: “Sharjah is currently undergoing a major transformation, largely thanks to the government’s foresight and continued investment in the local economy. The government’s decision in 2014 to allow all nationalities – not just UAE, Gulf, and other Arab nationals – to buy property in Sharjah has seen a sea of change in the real estate sector. “Prior to founding ARADA in December 2016, we conducted market research in Sharjah itself, and found that there was a real and urgent demand for fully comprehensive communities that allow residents and visitors to live, work, and play all within the same destination. This is exactly what Aljada provides to Sharjah. The emirate’s largest ever mixed-use community, Aljada, features extensive residential options, all within a beautifully designed space, with
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A five bedroom signature villa in Nasma Residences
Residential parks in Aljada
A rendering of First Avenue Street in Aljada
Sama Majlis Villa at Nasma Residences
easy access to large green areas for every resident, as well as the largest leisure and entertainment destination in the Northern Emirates, the Central Hub, which is being designed by Zaha Hadid Architects. “In addition, Aljada also features a Business Park with 500,000sqm of leasable space, as well as four hotels, schools, and sizeable retail options throughout the community. This is what makes Aljada truly unique, and why it is the fastestselling project in Sharjah.” Jointly founded by KBW Investments (KBW) and Basma Group (Basma), ARADA is a partnership enterprise dedicated to the creation of prime residential properties. It is led by the top figures from both organisations whereby HE Sheikh Sultan bin Ahmed Al Qasimi s serve as ARADA’s chairman, while HRH Prince Khaled bin Al28
waleed bin Talal acts as the company’s vice chairman. Alkhoshaibi opines: “There’s no doubt that the presence of two highly respected individuals as leaders of ARADA has been hugely beneficial to the fortunes of the company. Both HE Sheikh Sultan bin Ahmed Al Qasimi and HRH Prince Khaled bin Alwaleed bin Talal have many years of experience in a number of corporates and have an excellent understanding of the business environment, both here in the Gulf and overseas. “And, in the short time since ARADA was launched, we have built up a formidable team of more than 200 executives. Each of them are experts in their field, and together they bring many decades of experience, many spent with the UAE’s top developers and other property giants from around the world. We have also worked to
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learn from those who have gone before us - our team has been careful to note the successes and failures of other developers from around the region, and further afield, in an attempt to ensure that we bring the very highest quality workmanship and delivery to our projects.” Early 2017, the developer had launched its maiden project, Nasma Residences, an 800-unit masterplanned community with a host of facilities. The project offers a choice of two- and three-bedroom townhouses, four-bedroom semi-detached homes, and five-bedroom signature villas. The development expands over 46ha of land area and anchored by four community offerings, including a 13acre landscaped park with cycling and jogging tracks and large play areas; a multi-purpose community centre with club house offering sports and
Ahmed Alkhoshaibi, CEO, ARADA
recreation facilities; children’s nursery and full-service medical clinic; an international school; and a retail mall offering a large-scale anchor shopping experience for day-to-day and specialty needs and a range of casual dining experiences. Alkhoshaibi claims: “We’re delighted to say that we’ve received an overwhelming response from buyers for our first project, Nasma Residences. They have been attracted to our vision of providing comprehensive communities at a price point that works for everyone. As of now, we have sold 500 units in Nasma Residences, which features more than 800 villas and townhouses, from the three phases we have launched so far. We expect to launch the last two phases in the coming months and expect to sell all the units in the project by the end of the year.” www.cbnme.com
At Aljada, the developer launched the first phase in September 2017, and the second phase, East Village, at Cityscape Abu Dhabi in April 2018. And till date, ARADA has sold 1,000 units in Aljada. The chief says: “Majority of sales so far have come from Emiratis, followed by Gulf nationals and citizens of other Arab countries, while recent months have seen an increase in purchases from citizens of South Asian countries such as India and Pakistan.” To keep on expanding its portfolio, the developer hopes to announce the company’s first project in Dubai by the end of 2018. Alkhoshaibi points out that the new one will also focus on the company’s key objectives of providing beautifully designed and sustainable communities, with exceptional amenities, all at an accessible price point, just like the previous ones.
Complementing the local expansion, ARADA, in the longer term, is duly interested in expanding into international markets. He says: “We see Saudi Arabia as a country of significant opportunity, particularly given the changes that are happening in the Kingdom at the moment. Although we have no specific timeline for launching a project in Saudi Arabia, I would hope that we would be able to announce our entry into this exciting market within the next two or three years. Further afield, we are also considering overseas markets such as the UK, Australia, and Italy, where we have an existing land bank, although any expansion into these areas would come at a later date. In general, we carefully assess any opportunities that are made available to us based on their individual merits.” The Sharjah real estate market, as a whole, has been consistently more stable than many of its peers in the region, thanks to strong regulations that have protected both developers and investors, the developer claims. “This was one of the many reasons why we launched ARADA in 2016. We see Sharjah as something of a hidden gem for real estate investors, given the strong underpinning of education and culture and the growing sense of entrepreneurship here, and believe that it is on the cusp of significant change.” Supporting the growth, over the course of 2018, ARADA expects to launch and sell out Phases 4 and 5 of Nasma Residences, and also expect to launch the third phase of Aljada, as well as the project in Dubai. Alkhoshaibi concludes: “In terms of strategies for 2018, we have focused heavily on products that will appeal to mid-market investors and end-users as we see huge demand in this segment. Thus far, we have seen a split of roughly 70:30 in terms of investors over endusers in our projects. Over time, as our projects start handing over units to homeowners, we expect to see this ratio drop towards 50:50, as is the usual trend.”
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// Event review
Cityscape Abu Dhabi 2018
The 12th edition of Cityscape Abu Dhabi brought together more than 100 local and international exhibitors, and provided the platform for the launch of numerous real estate projects with an estimated worth exceeding AED15bn
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he 12th edition of Cityscape Abu Dhabi officially opened on April 17, 2018, and opened the doors to organisations keen to tap into an audience of real estate investors from around the world, and many of the big names in the regional property industry. Leading local and international developers, including Aldar Properties, Bloom Holding, and IMKAN, were out in full force, displaying the latest developments and upcoming projects slated for the emirate. Cityscape Abu Dhabi ran until April 19, 2018, at Abu Dhabi National Exhibition 30
Centre (ADNEC), and was held under the patronage of HH Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. Having witnessed a strong demand for its developments in Dubai, Azizi Developments attracted a record number of buyers and investors to its stand over three days. This traction was a result of attractive offers on select projects including Azizi’s mega community developments in Meydan – Azizi Riviera and Azizi Victoria - both of which witnessed tremendous response from potential buyers.
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Mirwais Azizi, chairman of Azizi Group, said: “We received a positive response for all our projects showcased at Cityscape Abu Dhabi this year. By popular demand, we released canal side units for Azizi Riviera that really appealed to the buyers and investors who were looking for properties with unique location features. They were especially interested in the pricing structure that we offered on select projects, including the 50% waiver on Oqood and the 7% guaranteed net rental return for three years. “We currently have a portfolio of AED45bn in the UAE, and this includes
The team at IMKAN
200 projects under various stages of development. We have some new and exciting announcements in the pipeline for 2018 and we will reveal them in due course.” The chairman also pointed out that 2018 started out on a strong note and the developer is continuing to see increased demand for community projects with easy access to the main landmarks in the city. Unveiling details on a range of mixed-use developments, Bloom Holding also showcased existing projects such as Bloom Heights and Bloom Towers in Dubai, and Park View www.cbnme.com
and Soho Square in Abu Dhabi. Sameh Muhtadi, CEO of Bloom Holding, said: “This year represents our seventh time participating in Cityscape Abu Dhabi. We consider it to be the most significant venue for our products. We launched two projects in 2017 and sold Tower A of both of the projects; currently we are offering Tower B for both, Bloom Towers and Bloom Heights. “In 2018, we are also announcing a project that we will be undertaking in the United States. It’s a part of our strategy to diversify internationally. The mixeduse project will be located in Rochester,
Minnesota, and will comprise a healthcare component and senior living concepts. In addition, we will invest in hotels and condos for sale.” Muhtadi also added that the company will announce two major projects in September this year. “We will start construction of those early next year in Abu Dhabi. One of them will be extremely large and is a 15-year long project; it will be over six phases. The other one will be of very quick turnaround and will be delivered early 2020.” He continued: “We are very focussed on customer attention, needs, and make
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sure the quality of our products is highest in the market. The customers are quite educated and tech-savvy now; they all ask the right questions. It’s a very good time to invest in the UAE given the fierce competition in the market. I believe as long as there is economic and population growth, there will be continued demand for quality real estate.” Property developer IMKAN, renowned for creating soulful places that enrich lives, showcased a number of projects both in the UAE and internationally, including Makers District, its 18ha mixed-use waterfront development in the capital’s Reem Island. The real estate company also unveiled models of its other domestic and international projects including Sheikh Fatima Park in Abu Dhabi, Al Burouj in Cairo, Carmine in Marrakech, and a highprofile mixed used project in Rabat. IMKAN CEO, Walid El Hindi, commented: “We are very proud of where we are today because this is our one-year anniversary. We launched the company last year at Cityscape Abu Dhabi and today we are proud to announce that not only we are able to create a brand but also have been working on 26 projects worldwide. But the most important part for us as a company is that we have around five projects under construction currently. “I think the feedback we have been receiving is very positive. Our brand is not only associated with unique projects but also with sensitive approaches through design for our projects. Our idea is to create soulful places for people to live in. We are changing the way people live for better.” He continued by saying: “The market is going to face ups and downs as a part of an historical pattern. However, most of our projects are long-term. And our long-term view for all the markets in which we have presence is very positive. We believe, specially for Abu Dhabi with its new approach of creating and presenting the city as a cultural hub, is truly a remarkable achievement the city has made. We also believe that all of what we do and try to align our vision with it, you know you are on the right track.” Dubai-based Binghatti Developers made an impact at this year’s Cityscape 32
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According to me, prices for the real estate market will go up end of this year.” - Muhammad BinGhatti, CEO and head of architecture at BinGhatti Developers
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// Event review
We received a positive response for all our projects showcased at Cityscape Abu Dhabi this year.” - Mirwais Azizi, chairman, AZIZI Group
Abu Dhabi by exhibiting its latest projects, Millennium Binghatti Residences in Business Bay and Binghatti Stars in Dubai Silicon Oasis. Sharing his thoughts on the 12th edition of Cityscape Abu Dhabi, Muhammad BinGhatti, CEO and head of architecture at Binghatti Developers, said: “We have a landbank of 28ha, which we have collected across different areas of Dubai, including areas like Jumeirah Village Circle (JVC), Dubai Silicon Oasis, Business Bay, and Jaddaf. As a developer, we believe in focussing more on mid-range properties. “I believe now it’s a buyers’ market and full of opportunities. Whoever doesn’t enter the market will feel [sorry] later on. According to me, prices for the real estate market will go up end of this year. I am very optimistic with the outcome of the show. The show has witnessed a lot of encouraging footfall.” 34
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We are very focussed on customer attention, needs, and make sure the quality of our products is highest in the market.” - Sameh Muhtadi, CEO, Bloom Holding
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// Interview
I n T o u c h w it h T o m o rr ow Pierre Santoni, senior vice president at Parsons, talks about how technology is in the forefront for supporting the growing infrastructure projects
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W
ith a multi-million dollar infrastructure project pipeline including a GCC-wide rail project, technological advancements are considered to be of supreme importance in the region. Present in the Middle East for more than 40 years, Parsons’ first project in the region dates back to the 1950s. In the last 10 years alone, Parsons has completed more than 900 projects in the Middle East, including Dubai Metro, Etihad Rail Phase 1, and many more. The company has also been awarded the site-wide infrastructure design and construction supervision services contract for the Expo 2020 Dubai site, and are also involved in several other projects that will contribute to providing the infrastructure required for Expo 2020. In an exclusive interview with CBNME, Pierre Santoni, senior vice president at Parsons, discusses how technology is implemented for large-scale infrastructure projects to stay a step ahead. what are the infrastructure projects that Parsons is currently working on? As Parsons, we cover a wide variety of the projects in the infrastructure sector, where we try to provide end-to-end solutions for the fields that we are involved in. Some of the mega projects that we are involved in includes the Expo 2020 and Dubai Metro Red Line expansion (Route 2020). We also collaborate for a lot of work with the Government of Dubai and the Roads and Transport Authority (RTA); a vast majority of roads and bridges in the emirate have been designed and are managed by Parsons. We also do a lot of work for private developers including the likes of Emaar and Dubai Properties. We are also the project managers for the Santiago Calatrava’s Dubai Creek Tower in the Dubai Creek Harbour. Some of our recent successes include the Dubai Design District and the City Walk project in the emirate. Regionwide, we are working on the much-awaited Doha Metro. In addition to that, we have a very active practice in Saudi Arabia where we have around 1,200 people working for us at the moment. www.cbnme.com
Parsons worked on the Dubai Metro
As a whole, we are not focussed on the production of energy itself; what we provide is protection for the infrastructure. ” Any particular projects that Parsons is eyeing in 2018? We are currently tendering for a lot of projects in the region. It’s actually very exciting; the beginning of 2018 saw the issue of big tenders for projects like the Etihad Rail Phase 2. In addition, we are a member company of Hyperloop One’s technical advisory board, which is designed to facilitate a close dialogue between Virgin Hyperloop One and a small number of key partners. We have contributed technical resources and know-how to advance the complex engineering that is required for such an innovative transport mode. We are lucky to be in this part of the world who are thirsty for innovation and technology and, every single day,
we get request from clients asking us to do better work. Our role is to bring the requests to fruition. Parsons is always in the forefront for collaborating with tech companies. Any more to come in the future? We are one of the most technology driven companies in the industry. We have tied up with technology partners to extend in the region and also have our own technologies developed inhouse. One of the most effective and the important ones is the Intelligent NETworks (iNet) platform which is an advanced transportation management system. It is a platform that can be supplemented with as many pointers as you want to support smart cities. Then we tied up with Renovo, a Silicon Valley-based mobility software technology company, and together we collaborate to enable the deployment and scaling of commercial automated mobility on demand (AMoD) systems. These systems are designed to manage an entire transportation ecosystem made possible by ride hailing, highlyautomated vehicles, next-generation intelligent transportation systems, and other technologies that are now commercially available. It’s a partnership that started about
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// Interview
Parsons was the project manager for the Dubai Water Canal
six months ago and gained popularity quite quickly. The first AMoD deployment will be in 2018; we are waiting for the right opportunity. What kind of support have you received from the regional governments? There are a lot of ways to deliver support; one of that is through the proper implementation of projects. We work on projects that are financed by the respective governments and in turn, they also have the responsibility to set up regulations and legislations, which are sustainable in the long-term. We lead in different ways, but the governments provide us with the effective enabling environments. For example, for the Dubai Metro, we carried out program management and construction supervision services. We are also doing the same for the Etihad Rail, the first freight railway network in the UAE. Which is the best performing market for Parsons in the region? Dubai is the most dynamic market for 38
us at the moment. The emirate has sustained growth for the last few years and has shown impressive performance despite dipping oil prices and geopolitical issues. We are also quite big in Saudi Arabia with a strong presence. We delivered some big projects there; we are also in the process of delivering the Riyadh Metro soon. It’s the single largest civil engineering project at the moment in the world. How does Parsons contribute to the energy infrastructure sector in the region? As a whole, we are not focussed on the production of energy itself; what we provide is protection for the infrastructure. One of the trends we have seen in the recent years is the threat to critical infrastructure. Parsons is one of the strongest in the industry in critical infrastructure protection (CIP) and cyber security protection. From physical to cyber threats, we provide services for the prevention and mitigation of these threats throughout the delivery of the project – starting from the very early planning stages
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to the operation and commissioning. Regionally, we are in talks with some of the main energy providers like DEWA, FEWA, and many more to collaborate with them for such services. Any particular strategies that Parsons has adopted for 2018? We are looking and extending our business in innovative mobility, which we provide in other parts of the world but not so much in the Middle East. Any technology driven solutions for the clients that we work for is our current focus. We believe in bringing the best practices first to the Middle East market. Clients are very innovative in this market. I have never seen a client here that has held us back in terms of innovation. We have several main divisions, including public and private sector and defence and security. The defence and security division look after CIP and cyber protection, in which we are seeing a very strong growth in the region. Also, private sector developers have been performing tremendously well for us in the region.
// Site Visit
The south Has risen Again CBNME takes a tour of the Emaar South development, where Phase 1 of the monumental project is currently under construction and on time for delivery 40
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ubai South (formerly known as the Dubai World Central) is the next upcoming zone in the emirate that is expected to support a number of activities including logistics, aviation, commercial, exhibition, humanitarian, residential, and other related businesses based around Al Maktoum International Airport. The construction area is spread across 140sqkm, close to the Expo 2020 site, and is estimated to be the future home of 900,000 people. To support the fast growing and favourable development, one of Dubai’s most sought-after developers, Emaar Properties, announced a huge residential project, Emaar South, featuring six districts anchored by an 18-hole championship golf course, a number of large community parks, dedicated retail precincts, and three- and fourstar hotels. Fadi Shaher El Borno, general manager, joint ventures, Emaar Properties, comments: “In terms of size and scale of the development, Emaar South cov-
We have paid close attention to the landscape, so we have awarded major contracts.” www.cbnme.com
ers 7sqkm. We are constructing the project in four phases; the first phase is well under construction. The whole masterplan comprises 25,000 units, comprising 7,000 villas, townhouses, tiered townhomes, and approximately 15,000 apartments. The centre of attraction for this development is the 18-hole championship golf course, which sits at the heart of the project.” Work is ongoing at a rapid pace with Emaar making significant progress on various components including road and infrastructure work. Development of all the residential components launched are also progressing at a fast pace, with Urbana 1 tiered townhouse community readying for handover in the third quarter of 2019. Urbana 2 and Urbana 3 homes are also scheduled to be delivered by end of 2019, in addition to the Golf Views apartments. The Golf Links villa community is scheduled for delivery in the first half of 2020, just in time for the Expo 2020 Dubai.
Work on the sprawling green district park and the vast landscaping will start soon as well as that of the championship golf course. The main spine of the development, billed to be a boulevard, will also take shape shortly. The 132kV substation that will serve the community will also be finished next year. Borno says: “Phase 1 includes Urbana 1, Urbana 2, and Urbana 3; Saffron townhouses; Golf Links and Golf Views apartments; retail centre; main boulevard; District Park and all the associated landscapes; the clubhouse; utility yard; and the three major holes of the golf course. In any brownfield or greenfield site, the first two years is majorly getting all the infrastructure done. “The masterplan officially broke ground just beginning of 2017. Different packages have different completion dates; in terms of buildings works, they are about 40% complete. “We are currently towards completing the deep and shallow
Fadi Shaher El Borno, general manager, joint ventures, Emaar properties
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Infrastructure works for phase 1 are in full swing
services and the roads. We are past enabling works by a year and a half. Also, we have already completed the roads in the Urbana 1 community. Concrete works are almost completed as well.” He also adds that buyers come from different parts of the world, from modern families interested in the tiered townhomes, and other families who like to live in apartments and typical townhouses. “We saw equal demand for different products. We believe in catering to the world.” Currently there are just over 4,000 workers on site between infrastructure and building works. Borno points out that there are three major contractors on site responsible for infrastructure, building works, and utilities. “We are talking about eight main contracts worth AED1.5bn mainly building works, 1,700 units between different asset classes, deep and shallow infrastructure services and roads, and the utility yard for power.” Borno also claims that the developer always supports all its products with major amenities. “Within Phase 1, we are building a retail centre, which will have a supermarket, nursery, bank, and all the necessities that any residents will need day to day. We will also have a school and a mosque that will be constructed very soon. “We have also paid close attention to the landscape, so we have awarded major landscape contracts. We always promote a healthy living for our residents, so we have walkways, pathways, bicycle tracks, and even outdoor activities like gym equipment to promote a healthy style of living. We have ensured that we have walking paths which will take you to the boulevard and the golf course.” Within each community like the Urbana or the Saffron or the golf course, the developer has included community clubhouse and club centres which makes every community self-sustained. 42
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Currently 4,000 workers are on site between building and infrastructure works
Eight main contracts have been awarded for the project
// Site Visit
Borno says: “We continuously improve and always learn to do things better from the predecessors. The golf course is under construction and as part of Phase 1, we are building the three major holes and a driving range, supported by a golf clubhouse.” The Golf Links neighbourhood will offer only four- and five-bedroom golf villas that overlook the greens, have extensive backyards, and assure a serene lifestyle away from the bustle of the city. The G+1 four-bedroom villas in Golf Links have a built-up area of 275sqm while the five-bedroom homes are spacious at 356sqm. Featuring living and dining areas, openkitchen with built-in cabinets and breakfast counter, walk-in wardrobe cabinets in the master-bedroom and built-in wardrobe cabinets in all others, the residences will have covered parking for two vehicles. Emaar South is uniquely positioned at the crossroads of Dubai and Abu Dhabi, and a short drive from Jebel Ali Free Zone (JAFZA), the home to thousands of global enterprises. Its central location brings assured longterm value for customers – through strong returns on investment and rental yields. Its diverse residential offerings ensure that families seeking a getaway in the heart of ‘new Dubai’
The masterplan officially broke ground in the beginning of 2017
Emaar South is uniquely positioned at the crossroads of Dubai and Abu Dhabi
The project is being built in four phases
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will find something to suit every lifestyle. Emaar South promotes relaxation, play and the outdoors, and is set among a network of parks and green spaces in addition to the soothing fairways of a championship golf course. Borno concludes: “The master development is definitely in the range of 10-year span and we are very much market-driven. We are very aggressive and continuously launching various products. We will also be building Phase 2 and Phase 3 within and Emaar being a market leader, we always respond to the market demands and changes.”
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// Interview
Faรงade in focus Eddy Abou Khalil, general manager, Cosentino Middle East, talks about the general trends in the external facades and cladding in the region
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ccording to recent market reports, the global cladding market is expected to reach $111.1bn by 2025. The shift in trend towards protecting exterior walls and growing construction of non-residential buildings such as offices in both developed and developing economies is expected to drive cladding growth. Stringent green building regulations and codes such as the LEED certification and others are encouraging investments in energy-efficient exterior panels in commercial as well as residential buildings. Spanish family-owned company, Cosentino Group, produces and distributes high-value surfaces for designers and architects. Its Middle East general manger, Eddy Abou Khalil, 46
gives an insight into the regional market and the rising demand for innovative and energy-efficient products. In the aftermath of so many fire incidents in Dubai, what improvements can be brought to the external facades and cladding of a building to avert them? Electrical short circuits, smoking, and barbecues on balconies have been behind most fire incidents in Dubai. And in such cases, poor quality exterior cladding is responsible for the rapid spread of fires, causing damage to both property and lives. In the aftermath of these fire incidents, the UAE Fire Safety and Life Protection Code have been updated and developers, consultants, contractors, and
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manufacturers have to comply with the stringent specifications and installation guidelines for cladding. As a manufacturer of cladding surfaces, Cosentino invests heavily in R&D to create quality material that is highly resistant to heat and fire. Our ultra-compact surface, Dekton, is one such innovative material that has practically zero flammability. We also take the responsibility to increase awareness about such material that is not only fire safe but also offers other benefits such as energy efficiency. What are the current projects that Cosentino is working on? Any new ones that the company is eyeing for? Currently, we are working on W Hotel,
Marina Gate, and Belgravia by Ellington which are nearing completion. We have just been awarded two new residential projects at Bluewaters and 1/ JBR. In addition, we are continuing to target both residential and commercial projects across the GCC and Levant. What are the new trends in facades and cladding that would dominate the regional market in 2018? There is a growing trend towards materials available in large format that enables more freedom in the design of facades. Aluminum Composite Panel (ACP) seems to be gradually losing its foothold as natural cladding like stone or materials that replicate the look slowly gains popularity.
How do you differentiate Cosentino from the competitors in the region? We differentiate through our products, services, and the relationships we are building with developers, fabricators, and the A&D community in the region. For the Middle East market, we have two pioneering and technologically advanced brands, Silestone and Dekton, that are superior quality, extremely low maintenance, and versatile for interior and exterior applications. We are one of the few to offer large format slabs with the added plus of having a showroom capable of displaying these large format slabs. We are also focused on educating our partners and building longterm relationships. We invest heavily in activations ranging from design collaborations to talks and knowledge exchange to support the industry. How was 2017 for Cosentino? Any new strategies for 2018? 2017 was a challenging year for us as it was for most others. We have learnt from that and we’re moving ahead with a positive outlook for 2018. Globally, Cosentino’s strategy is to get closer to the A&D community. In order to do this, in 2013, Cosentino launched the concept of opening
showrooms in the city centre of key global cities in a format called ‘Cosentino City’. A Cosentino City is not a conventional store. Rather it is designed as an information and service centre for architects, interior designers, and end consumers. It is a space immersed in the brand DNA, designed to encourage experiential engagement with our materials and interaction with our team. In November 2017, we opened the doors to Cosentino City Dubai at Dubai Design District (d3). And we manage the Middle East operations from this regional hub. To strengthen our presence, we have also doubled our team strength and have dedicated professionals managing each regional market. Do you feel there is a lack of awareness in the market about facades and cladding? What should be done to improve on that? There is low awareness about surfaces in general. As a manufacturer, we tackle that through all the initiatives that we host at our Cosentino City. These include talks, events, and interactive workshops with industry experts covering various topics, all aimed at increasing knowledge about specifying the appropriate product for the desired application.
How different are the facades and cladding in the region from the ones globally? What is the one standout feature here? Construction in the Middle East stands out for its prolific use of ACP and glass in facades compared to anywhere else in the world. This has been largely driven by factors such as cost and practicality of the material. However, now with strict regulations for the use of cladding material in building façade systems, developers and contractors are looking at sturdy options with better longevity. While cost is still a major concern for developers, there is definitely a shift in preferences. www.cbnme.com
construction business news me // June 2018 //
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// Machinery & Vehicles
Muscle & Might Our monthly review of the workhorses of the construction industry
52 Combilift unveiled its new EUR50mn global headquarters and manufacturing facility in Ireland 54 CBNME meets the Renault Trucks team guiding the company’s Middle East progress 58 Richard Sweatt, Middle East territory manager, Euro Auctions, shares his insight into buying excavators 62 Key highlights from Intermat Paris 2018 64 CBNME talks to industry majors about the changing role of cranes in a maturing market 48
// construction business news me // June 2018
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// Talking point
Fleet Intelligence Ford Trucks discusses how its FMS solution can transform fleet operations Ford Trucks continues to bring new features and special services to its customers in the region. During its successful product launch event of its Tractor Head Series recently in the region, Ford Trucks also launched its new Fleet Management System (FMS), which enables clients to track critical and essential data as well as the status of their vehicle to control the operational costs of fleets. It can also deliver huge savings on fuel and help fleets to better control the uptime of their vehicles. Efficiency and productivity are increasingly important to fleets in the region with many of them utilising telematics and software to manage their operations. To maximise the effectiveness of their operations, fleet can equip Ford’s Trucks own sophisticated FMS solution and access mission- critical data such as being able to follow each truck’s location and the vehicle’s condition. Ford Trucks’ FMS unlocks the operational potential of fleets with features such as the live monitoring of vehicles, fuel consumption tracking, and sudden fuel drop alerts. It is also a powerful tool for monitoring driver performance and will measure on-site operational productivity via detailed reports on the vehicles and drivers. Driving in the Middle East is a demanding profession and the skills, experience, and abilities of fleet drivers can vary considerably. Through features such as the Intelligent Dashboard, as well as reports and alarms, fleet managers can ensure that drivers abide closely to the traffic rules by tracking poor driving practices and speeding, thereby decreasing the potential risk of car accidents and the number of driving fines and penalties. 50
Major benefits • Safe Driving • Cut idle times significantly • No more fast, aggressive, and high RPM driving • Increased use of correct routes • Enjoy 25 data tracking features • Get reports on all violations • Access correct and qualitative analyses • Access detailed reports on customised website • More detailed vehicle monitoring with optional accessories
If there has been an accident or emergency, fleet managers will receive instant warning messages from the vehicle ensuring they can respond immediately. The location of vehicles can be identified in the shortest time possible in the case of stolen or lost vehicles - fleets should also be able to receive additional discounts from insurance companies due to the use of the vehicle tracking system. For added security, Ford Trucks’ solution can also prevent the theft of fuel from vehicles using its array of special sensors and software programs. To optimise the management of the fleet and drivers, managers are also able
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to draw up individual driver profiles and properly evaluate the performance based on statistical data. Managers can also receive daily reports to access upto-date data on operational costs. Ford Trucks estimates that by deploying its FMS, fleets can save up to 20% on their fuel costs and can also reduce maintenance costs by extending intervals and reducing wear and tear. It enables fleet managers to better plan maintenance schedules and services while repair work on their vehicles can be followed by using specially developed software programs. The Ford Trucks FMS is an in-built solution created in partnership with Arvento, one of the leading companies in the FMS sector and has provided its solution in three continents. Arvento brings to Ford Trucks FMS solution a broad product portfolio and a wide range of after sales service points which perfectly matches with Ford Trucks’ high-end series. Ford Trucks is always dedicated to being the right partner to its clients far beyond the initial purchase and after sales support is essential for the FMS as well. In fact, Ford Trucks FMS’s 7/24 RealTime Tracking and Control and wide after sales network makes this agreement a perfect match for fleets. This system is designed to maximise fleet flexibility and can be customised depending on fleet requirements with a series of features for fleet verticals. Ford Trucks will also work with clients to put together an FMS service payment plan that fits with their budgets. Ford Trucks also offers further flexibility with preventive service contracts and comprehensive service contracts which customers can again tailor, depending upon their operating requirements.
RAIMONDI LR213 LUFFING CRANE MAX. LIFTING CAPACITY
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30864.7 lb
// Machinery
S oa r i n g s u cc e s s CBNME attended the official opening of Combilift’s new EUR50mn global headquarters and manufacturing facility in Monaghan, Ireland
F
orklift manufacturer and material handling solutions provider, Combilift, officially opened its new global headquarters and manufacturing facility in Monaghan, Ireland. Celebrating its 20th anniversary this year, the company also announced that it will be significantly expanding its workforce with the creation of 200 new jobs in the next three years. Built at a cost of EUR50mn, the investment in the new 46,500sqm facility will allow Combilift to realise its ambitious growth plans. Martin McVicar, managing director of Combilift, said: “We have employed an additional 230 people since we announced our plans for this factory in 2015 and the combination of this production plant and the growing skilled workforce will allow us to double production within the next five years.” Combilift currently exports 98% of its products to 85 countries through its 250-strong international dealer 52
network. The current workforce stands at 550 people and the new employment opportunities will be for skilled technicians, design engineers, logistics and supply chain specialists, and those with mechanical and electrical mechatronics skills. New Factory The new 46,500sqm purpose–built factory is set on a 100-acre site with room for future expansion when required. With 11 acres of roof space, it is one of the largest manufacturing operations under one single roof in the Republic of Ireland. Incorporating the latest manufacturing processes with a focus on sustainability, the new factory will enable Combilift to double its output in a single shift across all production lines. Four 90m moving assembly lines produce a finished truck every 15 minutes. There are 60 welding bays, two plasma cutting machines, three paint lines which use sustainable
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water-based paints, and three automatic shot blasters to cater for different sized products. 12,000 pallet locations ensure ample storage space for parts and components. The facility also includes a 50-seat cinema training room, 5,000sqm of office space, and a dedicated R&D Development and Testing Centre. 23% of roof space is covered in skylights, enabling staff to work in natural daylight without the assistance of artificial lighting. Other lighting is provided through 1,100 LED lights with individual PIR sensors. Solar panels supply 185kW of energy with a 1MW biomass plant fuelled by recycled wood (pallets etc.) to heat the spraying booths and assembly area. 110,000l of rain water is harvested for jet washing and bathroom facilities. More than 50 truckloads of finished products are dispatched from the factory each week, and spare parts are shipped across the world to the dealer network. Certified to international
quality and safety management standards, the new headquarters and manufacturing facility has been awarded ISO 9001 international quality management system, ISO 14001 Environment Management, and OHSAS 18001 Occupational Health and Safety Assessment Series. Mass Customisation McVicar attributes the company’s impressive growth and its status as an acknowledged world leader in the material handling sector to mass customisation. “Combilift has set the benchmark for the mass production of customised innovative products. Mass customisation is the new frontier for both the customer and the manufacturer as customers are increasingly expecting products to be tailored to their requirements. We listen to and take feedback on board from our customers and dealers to identify solutions that best match their individual specific needs.” Combilift invests 7% of its annual turnover in research and development to enhance its customisation capability and to maximise return of investments (ROI) for its customers. McVicar adds: “The flexibility in our new facility means that we can continue to accommodate any request for a customised material handling solution. We also see ourselves as much more than a forklift manufacturer and are transforming the transport and logistics sector with our innovative, spacespacing products and our services.” Combilift also offers a free logistics and warehouse design service which enables customers to see the benefit that its products will bring to their business. “Our engineers proactively design, plan, and produce material flow analysis and 3D animations - 150 to 200 per day for our worldwide customers - which clearly illustrate the capacity potential as well as the optimum flow of materials on their site,” said McVicar. Product portfolio Combilift’s product portfolio has www.cbnme.com
Between 2008 and 2018, Combilift diversified its product range by developing a number of innovative space saving warehouse and heavy load handling products; the Aisle Master articulated truck and the Straddle Carrier (Combi-SC) respectively. Pedestrian products were introduced into the range in the last five years, enabling Combilift to gain foothold in this growing market. The Combi-WR, CombiWR4, and the Combi-CS all incorporate Combilift’s unique patented multi-positional tiller arm technology. “There is a growing demand for pedestrian trucks, driven by safety concerns where customers and/or employees are in the vicinity of operating forklifts,” said McVicar. “It is our intention to significantly expand this range, as can be seen with the launch of the new high lift capacity Combilift Powered Pallet Truck (Combi-HC-PPT).”
Martin McVicar, MD, Combilift
expanded way beyond its first multidirectional model, according to McVicar. “Combilift has always focused on a number of niche market segments and has a proven track record of launching one or two new products annually. In the first 10 years, we focussed on the long load material handling sector with the multidirectional range which revolutionised the handling of long materials, allowing customers to handle long products in less space more safely.”
Middle East plans Combilift started its Middle Eastern business 12 years ago back and, according to McVicar, there are lots of opportunities in the region. “We had a recent meeting in Dubai with Danube; they are a DIY chain and are really interested in looking at pedestrian equipment because their stores are always busy and we all know how much health and safety is becoming important in every country. So, for us, the more safety conscious the customers become, it’s a real benefit for our business. “In the Middle East, we have been doing business for over 12 years now. So, it’s a very significant market for us. We are growing there, and a lot of opportunities lie in the market.” The company sees its biggest growth in Saudi Arabia. McVicar concludes: “We try to target the easy projects first. In Saudi Arabia, we have a lot of business happening for steel fabricators; the construction market is buoyant, and the long loads material handling solutions are very successful. Also, there are a lot of warehouses being built in the country. Hence, we witness growth from that sector as well.”
construction business news me // June 2018 //
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// Trucks
In for the long haul CBNME meets the Renault Trucks team guiding the company’s Middle East progress
R
enault Trucks is emerging from Volvo Trucks’ massive re-organisation of its brands with a renewed ambition and refreshed line-up. Its own rich heritage in the region reaches back decades, particularly across North Africa where there remains a strong link with its French colonial past. It would be tempting to view its strong presence in countries such as Morocco, Algeria, and
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Tunisia, where almost one in every two trucks bear a Renault badge as the major focus for the company, but in the last year it has taken steps to enhance its capabilities and reach across the entirety of the Middle East and North Africa. Recently dealers and customers gathered at its May Long Haul Days event in Istanbul to test its latest trucks and find out more about its newest services,
// construction business news me // June 2018
Gregoire Blaise, VP, Greater Middle East, Renault Trucks, rattles through a list of significant changes to its approach to the market, including the establishment of a new regional headquarters for its new and used trucks operation under the Greater Middle East banner, a roll-out of its T, C, and K ranges, Euro 5-powered trucks in the UAE, the introduction of its automatic crawler gear system XTENDED
Optidriver, a re-start in Sudan and entry into Pakistan. While 2017 saw a total of 49,930 trucks delivered globally, Blaise says that Renault is ramping up its presence in a challenging market overall. “We can say that 2017 for the industry was not a very good year. Overall, the markets were declining and there were a lot of difficulties as I’m sure you were aware,” he says before adding that Pakistan could be relatively strong for Renault Trucks in the future, despite competition from Japanese and Chinese manufacturers because of the investment in infrastructure in the country. “For the last five years, it has really been doing regular and steady growth.” Olivier De Saint Meleuc, SVP, Renault Trucks International, explains that the strategy for the truck maker is to invest in the region now so it is prepared when the market recovers. “We consider that the actual market is very low but when Europe drops this time, the Middle East will grow - this is why we are making the investment now; investing in new headquarters, re-staffing in all different countries, investing in new importers,” he remarks. “We invest now so we can take the fruit when the market is higher.” Furthermore, the company has set-up a financial advisor in Dubai as it considers how it can provide financial support to fleets via its dealer, says Blaise: “We are exploring the possibility to bring some financial tools to countries although each of them will be a different case.” Currently serving 46 service centres in the region, Renault Trucks is also working closely with its local partners, De Saint Meleuc says, to identify how it can better help their fleet customers. “What we have felt for many years is that it is important to have offices in each of the countries in which we operate and have people on the ground to understand what the customer really wants,” he says. “The key strategy is to work with our importers because they are running each country and know the culture. The dealer always knows the customer better than we do. The trust in our importers is the key for how we want to build our www.cbnme.com
infrastructure worldwide.” “Going back to 2016, we decided that we needed to be closer to our customer,” says Blaise. “The main purpose is to listen.” During the event, CBNME was told how Renault Trucks’ C and K range vehicles have been developed to provide an efficient response to customer demands, whether they are being driven on or off the road. The company believes they set new standards in terms of robustness and productivity and on the sidelines of the Istabubal Park Circuit, the team was shown how each model can easily be adapted to suit a wide range of applications within the distribution and construction. Explaining that, importantly for fleet buyers in the region, both the ranges have undergone rigorous quality trials and exhaustive field testing under real operating conditions “to ensure they excel” within the Middle East market, Blaise says that the priority is to offer trucks that maximise fuel efficiency. “We have two ranges that cover Euro 3 and Euro 5 which can go for different segmentations, three different cabs, three engines, and you can do any number of configurations using these to do any application but, most importantly,
we are proven to be best-in-class in fuel efficiency,” he says. “By proven I mean, we have conducted a lot of tests with all the competitors with similar set-ups and in the same conditions and traffic. We have one of the best engines, drivelines, cabs, trucks, and with the best fuel efficiency, customers have a huge responsibility to benefit from that. “I know that fuel consumption isn’t one of the main (concerns of fleets) as the fuel prices are not up high but be sure that it will not last and the price will increase because of tax, etc,” he remarks. “If you are better at managing fuel efficiency compared to your competitors, then you will be more competitive than they are.” At the Long Haul Days event, Renault Trucks demonstrated how much of this extra fuel efficiency is being produced by the development of a new engine and a newly extended Optidriver driveline system which enables drivers to move at very low speeds on rugged terrain or when pulling a heavy load. Those invited to Istanbul were able to experience Renault Trucks’ newest features out on the track. “We say it is a proven new range,” says Blaise. “It demonstrates adaptation and evolution but we have some new
construction business news me // June 2018 //
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// Trucks
Optimising Total Cost of Ownership Renault Trucks believes it has developed a global transport solution that optimises operating costs for fleets in any market. The manufacturer has committed itself to be being present throughout the vehicle's entire operating life and provide them with efficient financing and insurance solutions, low fuel consumption, instruction in economic driving, and efficient locally-based maintenance services, as well as ways of reducing downtime costs. To help its customers cut fuel consumption and therefore reduce operating costs, Renault Trucks has made this issue the focus of its concern right from the vehicle design stage. The C range is fitted with an OPTIDRIVER automated gearbox as standard, together with cruise control with features designed to optimise commercial speed and reduce fuel consumption. The cabs of the C and K ranges have windscreens set at an angle and in trapezoid form, narrower at the front than at the rear, which boosts the air penetration coefficient by up to 12%. Hauliers will also experience increased profitability thanks to the technical qualities of the C and K ranges, since the engines deliver a hitherto unrivalled level of performance. With its optimised curb weight, the C range offers a Gross Combination Weight Rating (GCW) of up to 100 tons for a 6x4 tractor. For its part, the K range offers a GVW of up to 120 tons. Focussing on the driver as well as the vehicle, Renault Trucks has been developing its own instruction in economic driving over more than 30 years, which is being continually adapted to keep pace with customers' changing needs and technological innovations. Over 25,000 drivers have now followed OPTIFUEL training instruction.
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features. We have addressed minor issues that we faced at the beginning: there's a new engine and we have extended the Optidriver system to allow you to have very slow movement of the trucks and still have control.” He continues: “We are convinced Optidriver is the best gearbox in the market. And for construction and long-haul applications, it is a fantastic gearbox. We are still investing but moreso to finetune - and our customers are extremely happy with it. The reality today is that only an extremely highly skilled driver can save a slight amount of fuel. You have to be extremely good to be better than the gearbox. There are some drivers who think are better but it is our task to convince.” The move to Euro 4 and Euro 5 emissions standards in the UAE has been a major change within the Gulf market and like other manufacturers, Renault Trucks, saw a pick-up in demand for Euro 3 vehicles prior to its introduction as fleets. “We saw a bounce before the implementation,” Blaise notes. “For our customers, there is an added constraint that they wanted to avoid. While we have had to do some training on it for our aftersales which is normal, but I believe it is much harder for manufacturers from India or China. We have been on this Euro 5 journey for a long time, but it is not a big deal.” “It is more a question for us to work with our importers to anticipate the preand post-buy volumes,” adds De Saint
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Meleuc. “From a service perspective, it is something that we are managing well. This is an example of why it is important with us as Renault Trucks to have via our importers a direct connection with the final customer. Whether it is Saudi Arabia or Pakistan or everywhere, this is why we need to keep feet on the street.” With De Saint Meleuc calling the Middle East as high on the agenda for the truck-maker, Blaise highlights the importance of bringing dealers and distributors together at an event such as Long Haul Days in Istanbul. “We believe that any customer touching or using our trucks is convinced that our brand deserves much more than it has right now in the Middle East. We need these events and demos - and partners who are fully committed. We are back, and we want to be here in the long-term as we believe the market growth will come from this region.” Blaise is a relative newcomer to the Middle East, arriving in 2016 as part of Volvo’s shuffling of its four-strong truck pack (Renault Trucks, Volvo Trucks, UD, and Mack). He explains why he is sure Renault Trucks can maintain momentum against its peers in the market. “We are in a business where people have memories because they are buying and using a truck for a long time. In our business, if you are really principled, committed; and there when your customer needs you, they remember that. This is why I am enjoying my work.”
// Auctions
Top Tips for Buying an Excavator Richard Sweatt, Middle East territory manager, Euro Auctions, shares his insight into buying excavators with CBNME
E
xcavators are the work horses of projects in the region but when buying an excavator at an auction, where there is typically a multitude of models and types to choose from, how do you pick the best of the bunch? How do you find that perfect excavator? How do you avoid ending up with a rogue machine? Machinery auctions specialists, Euro
Auctions, has created a ‘Top Tips’ list for CBNME that will help you ensure you carry out all your checks and end up with a real star. Richard Sweatt, the territory manager for Euro Auctions in the Middle East, has put together an in-depth guide of several excavator features and functions that should be carefully examined prior to purchasing a used example. “At Euro Auctions, we run live parade
Tip #1 History
“The first point to consider is the history of the machine as much as the hours. If the machine has had one or two ‘careful’ owners in its life, the hours for a five-year-old machine may not seem excessive. If the excavator is three years old but an ex-rental machine, then it could have had a lot of different users in its life, but it has only had one owner and typically been serviced well. It’s all about who owned it and the application it has been worked in that will tell you the likely condition.” 58
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style auctions. You can tell a lot from just looking carefully as each machine comes on to the ramp for sale. Is it breathing, or smoking, or is it excessively noisy?” He tells CBNME. “Exhausted? You will be, but if you are looking for a good machine, you have to put the effort in to finding out exactly what you are bidding on or buying. Follow these tips and you won’t go too far wrong.”
Tip #2 Slew Ring/ Pins and Bushings “Check for wear in the moving parts. Start the machine and operate it slowly placing the bucket on the floor then applying pressure. It’s all about slow movements that will allow you to see any play in the machine. Pay close attention to the Boom base Pin and the slew ring as these are the expensive bits to repair. Expect some movement in the pins in older machines and look to see if the pins and bushes have been greased.”
Exhausted? You will be, but if you are looking for a good machine you have to put the effort in to find out exactly what you are bidding on or buying.”
Tip #3
Exterior Condition “The exterior of the machine should be checked for dents, cracks, and bends. On level ground, push the bucket out half way and place it on the ground. Get out and stand in front of the machine. Is it sitting flat on the ground? (Better with a ditch bucket on) this will show up any major twisting in the boom and stick. Look at the inside of the stick and boom for damage from heavy use on demolition. If the machines have lots of stone chips around the cab area, this is a sure sign it was used on a breaker. “Stand at the back of the machine and look down either side to see if the panels are straight. The most common place for damage on an excavator is the offside rear side panel. Lastly, look under the machine at the belly panels. If these are all dented and twisted, you can be sure it’s had a hard life.”
Tip #4 Hydraulics
“Crowd up the boom and stick to expose as much of the hydraulic cylinder chrome as possible. Have a look for burs and scrapes. Look for leaking hydraulic oil. Hoses are cheap to replace but metal pipes and components might be expensive. Check the hydraulic pump compartment for oil on the bottom and for signs of repairs to the pumps. A good user would repair leaks as a matter of course. Perhaps this is another telltale sign of how the machine has been looked after!” www.cbnme.com
Euro Auctions bidding for success in Middle East Euro Auctions continues to build upon its success in the Middle East. Its latest Dubai auction held recently drew in an everincreasing number of bidders looking to acquire fantastic deals from the array of equipment being offered. The one-day sale resulted in a final hammer total of almost $3mn, 30% of which was transacted online. Average lot prices were up over 20%, reflecting the improving quality of the equipment being consigned to the auction by the ever-expanding number of vendors, says Euro Auctions. New bidder registrations for this sale were also boosted significantly by approaching 100 new and first-time bidders; around one-in-three of whom placed successful winning bids, securing the equipment they were seeking. Euro Actions leases a 91,000sqm site in the Jebel Ali Free Zone (JAFZA) that includes a purpose-built auction complex covering over 3,000sqm with a 360-seat, fully air-conditioned enclosed auction arena as well as ancillary buildings, workshops, and infrastructure services and logistic licences in place for the new venture and will trade under the Euro Auctions brand. Bidders came from across the Middle East including UAE, Lebanon, Saudi Arabia, Jordan as well as from Turkey, Egypt, and Pakistan plus there was a strong Western European contingent, with the UK, Netherlands and Spain all well represented. “The general consensus is that around twothirds of all the quality equipment sold at the recent auction will be retained in the Middle East for use on emerging projects, but a good proportion of the rest looks like it could be returning to Europe,” stated Jonnie Keys, Euro Auctions’ commercial manager. “The quality of the equipment being offered in Dubai appeals to global buyers as does our strong market presence, together helping deliver real growth.”
construction business news me // June 2018 //
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// Auctions
Tip #5 Hour Meter
Tip #7 Bucket and Attachments
“Check the hour meter and consider if it looks to fit with the condition of the machines. In almost every instance, this will be enough but if it looks wrong, investigate the filters as they may be marked with the next service hours. If you are really not sure, then the manufacturer will keep a warranty record with hours.”
“What buckets does it come with? This will impact the price. A machine with a full set of buckets will save you a lot of hassle and expense. The bucket teeth should be examined to see if they are worn as well as the cutting edge between the teeth. Does it come with attachments? More importantly if you plan to run a breaker or other attachments does it have hydraulic lines to service them?”
Tip #6 Tracks
“Tracks are an important and expensive part of the overall machine. The current condition of the tracks should be examined. Look at the obvious things first. Check the track pads. Do they have any depth? Are they all there and straight? Check the sprockets, idlers, and rollers for wear. Check the rollers for collapse bearings. Now look at the track chains with the engine off. Feel the pins for wear. Are they round or not? Then look at how far out the idler is on the machine. This is a sign of pin and bush wear. In our yards, there are always lots of machines to compare against. Tracks are expensive, so mark down the price of a machine with worn tracks.”
Tip #8 Parts and Service “The model of the excavator you choose should be researched. Think about whom you have available to service the machine and which manufacturer is strong in your part of the world. Spare parts are readily available by post but if the machine breaks down and becomes inoperable, you will need local service. For mainstream brands, this is less of a problem but some manufacturers still have gaps in their service offering.”
Tip #9 Price “Excavators hold their value well and whilst a lot of emphasis is based on the hours, additional factors may come into play when determining the value of used excavators. This includes the year the model was made, overall condition, service records, as well as the demands of the global market, and currency. We sell thousands of excavators every year, so look at our website to get pricing to help you make a good decision! If you need some more advice at our auctions, ask one of our staff who will be happy to help you.”
Tip #10 Start Your Engines! “Start the machine, set it up to operating temperature, and listen for unusual engine noises. Check for excessive exhaust smoke. Step out of the cab and open the engine compartment to check for breathing. Check for oil leaks around the engine and in the bottom of the engine compartment. Examine all fluid levels and coolant levels, noting the oil condition and checking for water in the engine oil. 60
See if the filters show current dates and are in good condition. Make several simulated digging cycles with the boom, stick and bucket. Swing the boom left and right, extending the stick, opening and closing the bucket. Operate the blade up and down. Raise the front of the machine with the blade. Swing the upper body to the left and right, again checking for hesitations. Run the machine in forward and in
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reverse and turn left and right with the tracks. Are the controls operating smoothly? While the machine is running, check the operation of all controls and gauges. If the cab is enclosed, operate the air conditioning and note any glass, mirror or door latch problems. Finally check whether the window wipers work along with external lights.” Time to Bid or Buy!
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// Event review
Intermat 2018 CBNME reviews the best brands and launches on the fringes of this year’s Intermat 2018 in Paris
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f you wanted to see the very latest in cutting-edge equipment technology, then there was no better place to visit than Intermat 2018. Sitting between last year’s ConExpo in Las Vegas and next April’s Bauma in Germany, it is typically the big machines and brands that dominate the coverage at the Exhibition Center Nord Villepinte on the outskirts of Paris, but Intermat 2018 had plenty of other great launches worth highlighting. It is possibly unfair to bundle a globally recognised name like Genie into a look at the smaller launches, but its stellar line-up of machines will probably be over-shadowed by the blockbuster crane and electric heavy machine launches at this year’s event. The Terex-brand says it is focusing on rising market demand for clean, quiet, low, and emissions-free access solutions, as well as machines that offer the ability to lift heavier loads at Intermat 2018. The highlights on stand E5 K 025 include its 62
new generation of environment-friendly hybrid and electric work platforms, new additions to the Xtra Capacity (XC) boom lift family, and an upgraded model of the electric Genie GS-4047 scissor lift. The brand says it will also be showcasing its new Genie Lift Guard line of operator protective systems, and new Genie Lift Power generator solution. Showcasing its line-up, Genie told CBNME: “Genie hybrid and electric models on show will include the ERA awardwinning 20m Genie Z-60/37 FE hybrid articulating boom lift, the 12m Genie Z-33/18 electric articulating boom lift and the 11.89m Genie GS-4047 electric slab scissor lift. Genie XC models on show will include the 41.15m Genie SX-135 XC boom lift, either the 25. Genie S-85 XC boom lift or the 19.84m Genie S-65 XC boom lift and the 13.86m Genie Z-45 XC articulating booms lift.” Meanwhile, the UAE-based company KBW Investments’ Raimondi Cranes
// construction business news me // June 2018
followed its bow at the Big 5 Heavy event in Dubai with an appearance alongside its French agent, GP MAT International (GP MAT). Erected onsite was the Raimondi MRT234 equipped with elevator, and the Raimondi LR330, which launched in February 2018. Eng Domenico Ciano, technical director, Raimondi Cranes, explained that France is one of Raimondi’s strongest markets. “Our French market share in Raimondi is reflective of our dedication to manufacture intelligently-designed tower and luffing cranes, and the significant quality service put forward by our valued partner GP MAT since 1996.” The team at Raimondi Cranes were on site with GP MAT’s president, Torchard, and Ciano has praised his counterparts’ role in the success of establishing the cranes in the French market. “Under Torchard’s leadership, GP MAT has positioned Raimondi’s heaviest lifters on many strategically important French
jobsites. We will continue to build on our extremely fruitful partnership by supporting their work with Raimondi’s technical specialists and export and aftersales care experts.” Wacker Neuson Group displayed the battery-powered and entirely emission-free compactor, the vibratory plate AP1850e, as it demonstrates how it is expanding its zero-emission range for operator and environmentally friendly work. The single direction vibratory plate AP1850e is the only battery-powered plate on the market and will go on sale following Intermat. With a running time of up to one hour, it can be used for the best part of a workday on almost any building site. The battery and the charger used the same modules as used in Wacker Neuson's battery rammer, so operators are able to use the battery in one of the devices whilst charging the other. “By doing this, we are fulfilling our customer’s requirements in view of the practicality and flexibility of use,” said Alexander Greschner, chief sales officer of the Wacker Neuson Group. “The vibratory plate AP1850e is particularly suitable for the compaction of both granular and asphalt surfaces. Electric drives are becoming ever more important. These solutions are an important addition to rental fleets, as many of their customers lease products, especially for projects such as interior space restructuring or tunnel construction.” Alongside the new plate, the zerowww.cbnme.com
emission range includes two battery rammer models, the dual power excavator, an electric-operated track dumper and two electric wheel loaders, one from Wacker Neuson and one from Wacker Neuson Group’s subsidiary Kramer. Shows like Intermat 2018 are also opportunities for tyre makers to demonstrate how they can make a positive impact on site productivity. Consequently, India’s BKT Tires, alongside ALLU and others in the Earthmoving and Demolition area, set out to make a “remarkable presence” at the event. The company has invested $500mn into broadening its off-highway tyre presence and is bringing its entire product portfolio to the exhibition including solutions that are suitable for a variety of needs and applications such as its cutting-edge Earthmax tyre line-up and a selection of tyres for industrial
machinery. This included the Portmax PT 93, which made its debut in the European market at the show. Specifically designed for terminal tractors, this tyre is suitable for intermodal transport operations. BKT claimed it provides excellent stability, top driving comfort along with durability. Ohio outfit Dana rolled-out the full breadth of its drive and motion products for the construction industry at the event. This included a newly optimised axle/ gearbox combination for small and medium-sized single drum rollers that enables original equipment manufacturers to reduce the package size of motors, pumps, and other hydraulic components. Dana’s solution includes the Spicer 192 rigid planetary axle, a Brevini CTU Series gearbox, and Brevini SH Series variable displacement hydraulic motors. This combination facilitates the use of an axle with a high reduction ratio, which increases the power available to the rest of the system and allows manufacturers to use more compact hydraulic components while maintaining optimal performance, the company claims. “The designs of single drum rollers are becoming increasingly compact and versatile to provide improved visibility, enhance operator comfort, increase productivity, and accommodate advanced emissions controls and other new systems,” said Aziz Aghili, president of Dana Off Highway Drive and Motion Technologies. “This configuration illustrates the tremendous value Dana can deliver through our unique portfolio that combines Spicer drive systems and Brevini motion systems.”
construction business news me // June 2018 //
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// Cranes
Reaching out CBNME talks to major industry experts about the changing role of cranes in a maturing market
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Whenever the construction market faces a slowdown economically, the demand for used equipment starts to increase,” says Nagham Al Zahlawi, strategy and marketing manager at one of the world’s premier crane suppliers, NFT, drawing inspiration on the words from the fellow UAE-based powerhouse, Mohamed Abdulrahman Al-Bahar. “This cannot be truer today,” she adds. “With contractors focusing on short-term decision making, the bulk of our orders are for second hand tower cranes. As the construction market grows in the Middle East and there is an ever-growing need for cranes (and for us), it begs the question of looking into the crane market deeper.” 64
In global markets and in the Middle East, second hand cranes have always been used and there seems to be a steady demand for them. Globally, NFT has become a go-to for second hand machinery as many suppliers and traders are looking into matching supply and demand, Al Zahlawi tells CBNME. “The world economic crisis happened so abruptly that many manufacturers failed to see the warning signs and could not cut production quickly enough, which led to them sitting on huge inventories of machines,” she remarks. “Considering many buyers are now looking for bargains, the used market has been soaring over the past decade.” As a dealer for Manitowoc, Grove,
// construction business news me // June 2018
and Potain, NFT has risen from its Abu Dhabi base over the last two decades, riding the boom of the noughties and turned the ensuing slump in the market to its advantage to embark on a global expansion that has seen it supply, install, and work its cranes globally. Consequently, it is well-placed to be regarded as a thought leader in the industry, even launching a blog on its website named What’s UP, where it helps contractors struggling with a challenging market to make the crucial decision of whether to repair existing equipment or replace it with new models. “In this blog, we talk a lot about Manitowoc’s dedicated rebuild, repair, remanufacture, and exchange program
From L-R: Wael Hasan, commercial manager, ME, and Eng Mauro Masetti, commercial director at Raimondi
The Raimondi LR330 luffing crane exhibited at Intermat 2018
for all models of Manitowoc, Grove, and Potain cranes. It’s called the EnCORE program and it has been running since 2011,” she explains. “EnCORE refurbishment services are located in the Charlieu, France Potain Tower Crane manufacturing facility. Each refurbished crane is rebuilt with genuine Potain tower crane parts.” These are then painted using the same advanced paint technologies applied to new production, she continues to explain. All refurbished cranes and parts are covered through Potain’s warranty programs and supported by the global Potain network, with all technical documents in the language of choice to support the refurbishment. Through the www.cbnme.com
EnCore programme, Manitowoc offers various levels of refurbishment and, depending on the condition of the crane, owners can choose either an entry, standard, or premium level of refurbishment. In the Middle East, NFT uses its new 300,000sqm facility to increase stock, refit used equipment, and improve customer service. The yard is now home to NFT’s growing stock of 2,000 tower cranes of which 50% are second hand models. It also contains 500 hoists and 35,000 pieces of spare parts. “NFT has dedicated two facilities for reconditioning used tower cranes. The first one will be handling all the welding and painting while the second one will
be focussing on mechanical and electrical work. The two facilities are joined together like an assembly line whereby each part of the used tower crane is checked and improved step by step until finishing with painting. The yard has enough space for testing as well, Al Zahlawi remarks. The company also continues to ensure that its in-house technical department is available to advise on contractors on how to make the most of their cranes once they are deployed on-site. “We always recommend that contractors involve their crane supplier from the beginning of the project study. Just like the contractors wish to be involved in the design stage with the developer, the same applies for tower crane or crane suppliers. Indeed, NFT’s structure engineers study the building requirements and will recommend an optimised solution using a combination of tower cranes and other cranes to fulfil the job within the budget and space constraints. “This is something we offer to our customers as an added value whenever tendering for a project. Allowing suppliers to be involved from the beginning will minimise unexpected costs and problems during the project development.” Dubai was estimated to be home to 20% of the world’s cranes during the peak boom years of the last decade. Apocryphal figure or not, tower cranes suspended hundreds of metres in the air were a common sight then, and, while they still pepper the city’s skyline today, the maturing of the market means that they are often found at much lower heights and helping to build affordable housing. Indeed, Al Zahlawi says in the construction of low rise (“precast villas or eight storey buildings”), self-erecting tower cranes like the HUP by Potain are replacing mobile cranes and telehandlers. “Firstly, self-erecting tower cranes can be positioned close to the building because they operate in a very small footprint and are therefore less likely to obstruct movement around the site,” she explains. “Lifts are performed quickly and accurately while self-erecting tower cranes have the ability to reach areas
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// Cranes
where mobile cranes cannot. In addition, the folding structural design means that the tower crane can be operational in one to two hours automatically without any hire of secondary machines. The cost of fuel, labour, and maintenance are reduced. Most importantly, self-erecting tower cranes have bigger lifting capacities at same radius when compared to mobile cranes or telehandlers. “Self-erecting cranes are quite unique in their concept and are sadly overlooked by contractors. We are the sole supplier when it comes to large selferectors (45- 50m jib, 30m height) with a high capacity (8-10t).” When asked that the general demand for cranes is in the market, she admits that it’s hard to get exact statistics as there is no monitoring for this “kind of thing” but, for NFT, demand has been high. “We currently have more than 100 tower cranes on site in the UAE alone as of today; this excludes cranes we have sold and just focuses on tower cranes on rental,” she says. “There is an increasing demand for high-capacity tower cranes, pushing manufacturers to focus on bigger equipment. NFT’s advantage is that we have the largest tower cranes by Potain in our fleet – such as strong luffers with the MR 418 and MR 608. We have in fact supplied 10 MR 418s for a mega project in Dubai.” Given that the GCC is home to two of the top three tallest buildings in the world, it comes as no surprise that larger cranes are in high demand, she adds. It is a segment where NFT has few rivals. “We have a reputation worldwide for being specialised in giant cranes (40T) and a lot of tower crane companies around the world consult us for our expertise. We have 14 units of the 40tonnes machine in our fleet, which is the largest in the world. In the GCC, we have a handful of MD 1100s working on the ground including eight in the Kuwait International Airport project alone, and we expect more demand for such cranes in the near future, especially in industrial and pre-cast type of construction. We also have in our fleet a couple of giant tower cranes with a max capacity of 64T, such as the MD 3200 – the largest in Potain’s product range to date.” 66
A success story Owned by Dubai-based KBW Investments, Raimondi Cranes is currently experiencing its best-ever year in the Middle East, says its regional commercial director Eng Mauro Masetti. “Since the appointment of Wael Hasan as commercial manager of the MENA region last year, we’ve seen a surge in business,” he tells CBNME. “From the climbing of existing Raimondi cranes to sales of new multiple cranes on large jobsites, we are thrilled to share that we are in a very strong market position. We are also in the process of submitting quotations for a few jobsites that seem very promising. I am optimistic that these sites will opt for Raimondi, based on our proposals and our ROI value, and our strong after sales care mandate which our repeat customers value a great deal.” The strong start to 2018 will soon further be bolstered by the launch of Raimondi’s newest product, the company’s first hydraulic luffer. Eng Masetti says the new crane is already showing promising numbers. “It is currently in agent pre-sell stage, as we always present cranes to our exclusive agent network ahead of releasing the product to the general public. This would make our third new launch in under 12 months – so our R&D segment is really delivering on the guarantees that we’ve been making over the past few years,” he remarks. “It is part of our commitment to be designing ahead of the curve and setting a benchmark in heavy lifting machinery, even where accessories are concerned. The SL20-TC crane elevator, designed in compliance with Standard EN81-43, is fitted with front and side windows meant to facilitate easy crane inspection, while the Raimondi Deluxe R16 Crane Cabin has a total exterior of more than 80% glass meaning crane operators have better onsite viewing fields.” He adds that the three new products followed “very successful” launches of its MRT159 and the LR213 cranes in 2016: “we’re a company that has taken five new products to market in under two years – all designed with end-user dynamics in mind.” In addition to its advances in design and production, Raimondi, which has maintained its manufacturing operation in Legnano, Italy, since the acquisition by KBW Investments in 2014, has just returned from Intermat 2018 in Paris. Eng Masetti says the past 12 months have been its most active yet, enhancing its presence in the global marketplace. “We have showcased our technologies at the Big 5 Heavy in Dubai, Intermat 2018, ConExpo in Las Vegas, and we will also be present at KHL’s Tower Cranes North America (TCNA) in Miami from June 18-19. This is probably Raimondi’s most aggressive year across all of the arms of our business. We are proud to be a market leader and we intend to keep up the momentum.” Raimondi Cranes Middle East owns a fully operational yard in the UAE and, via its in-house teams of technicians and engineering specialists, it is able to offer multiple services to clients across the GCC. From new sales to site-planning, Raimondi’s client care specialists, led by the experienced Hasan, provide in-depth consultation “regardless of size and scope” on a huge range of activities such as rentals, crane planning, crane operation methodology, crane erection and dismantle, spare parts and service contracts, anti-collision systems, base and tie leg design, in-house client-side training, and service and maintenance. The ability to straddle a wide range of disciplines ensures the company is able to accommodate the increasingly complex demands of contractors and developers. “Bespoke operations are definitely increasingly in popularity both in the MENA region and throughout Europe. The increasing complexity of jobsites, specifically those in densely built up areas, require expert and astute site planning. Our technical team has met every challenge that clients have shared with us,” concludes Eng Masetti.
// construction business news me // June 2018
// Editor's pick
Push forward Kuwait eyes private sector to invest in country’s growing infrastructure projects and encourage an investment climate, according to a Deloitte report
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uwait continues to create an encouraging investment climate for the private sector to invest in infrastructure projects. This is according to Deloitte’s latest report, Doing business guide – understanding Kuwait’s tax position, which finds that the country offers a series of potential benefits to foreign investors including income tax holidays up to 10 years, and exemptions from custom duties for importing relevant equipment and materials into the country. The Kuwait Direct Investment Promotion Authority (KDIPA) has also introduced a scoring system that is followed when evaluating the issuance and approval of the investment licenses. The aim of the standards is to encourage businesses who have successfully contributed to Kuwait’s economy by offering them a set of incentives on direct investment promotion in the State of Kuwait and Executive Regulation. KDIPA has also issued earlier this year a new resolution announcing that the foreign taxpayers could calculate and claim their annual tax credit for their licensed operations. All of this results in promoting investment opportunities in Kuwait. Ihab Abbas, partner and tax leader at Deloitte Kuwait, said: “Kuwait is opening its doors to foreign investment and encouraging companies to invest in the country to be part of its future development plans. Kuwait has previously announced its “2035” vision, which includes various mega projects. The plan will mainly focus on developing North Kuwait and the different islands around the country. The development program is aimed at attracting investment, developing competitiveness, improving legisla68
Once VAT is implemented, businesses having operations in Kuwait will have to enable their systems to fully comply with local VAT obligations and reporting requirements.”
ture to support the economic and social systems whilst creating more than 200,000 jobs. Kuwait has indeed become an attractive landscape for investment opportunities.” The report provides an overview of the tax position of the country through its transition to Value Added Tax (VAT) and other tax changes affecting the GCC country. The guide addresses the key tax considerations for doing business in Kuwait, alongside key legal, economic, and market drivers which impact clients who are looking to invest in the country, or those who have been present there for some time, but are looking to undertake a review of their tax exposures, which may include remedial or long-term solutions The Kuwait Government has
// construction business news me // June 2018
committed to introducing VAT through the signing of a VAT Treaty along with the rest of the representatives of the Member States of the GCC. The treaty acts as the basis for the domestic VAT legislation by stipulating certain principles, which must be followed by all members, while allowing Kuwait to opt for different VAT treatments in relation to some supplies. The Kuwaiti government has committed to introduce VAT by signing the main framework agreement with the GCC countries. The draft law has been approved by the Cabinet and is now with the Kuwaiti Parliament for approval. Robert Tsang, indirect tax partner, Deloitte Middle East, said: “The introduction of VAT in Kuwait would entail increased administrative, reporting and record keeping requirements to comply with. VAT - being a consumption tax - would mainly impact end customers through price hike, although business may experience narrowing margins and increased price competition after the introduction of VAT. Experience from the UAE and KSA shows that those business which prepared on time could gain competitive advantage and avoid business disruptions after VAT was introduced.”
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// Save the date
Save the date Mark your calendar
June
21-23
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Indian Property Show Dubai, UAE The Indian Property Show is an internationally acclaimed event, showcasing Indian properties to NRIs across the globe. It is one of the most awaited events for Indian properties in several countries. So far, Sumansa Exhibitions has successfully organised 30 Indian Property Shows internationally in locations such as the UAE, UK, Singapore, South Africa, Qatar, and Hong Kong, in a span of nine years while the list is still increasing. With a unique educational focus, Sumansa holds seminars on all days of the exhibition to inform and educate the people on various aspects like property investments, legal issues, finance etc.
Smart Skyscrapers Summit New South Wales, Australia A platform for knowledge sharing and networking, the event will survey projects in development in the Australian context while simultaneously looking to and drawing inspiration from examples abroad. An exclusive opportunity to be exposed to new, innovative ideas, the summit will focus on how cities adapt and cope with the demands of structural change, technological advances and environmental factors. Emphasising smart, sustainable, and green solutions for high rise development, the Smart Skyscrapers Summit is the foremost fastest growing skyscraper event that will see a huge cross section of field experts providing leading global and regional perspectives on the future of skyscraper infrastructure.
// construction business news me // June 2018
June
28
July
24-25
Global Property Consultant Summit Dubai, UAE The Global Property Consultant Summit, organised by the Datamatix Group, aims to discuss the opportunities and challenges in the real estate sector and explore emerging trends that are redefining investment opportunities in the real estate sector with a particular focus on upcoming landmark projects that are opening new avenues for stakeholders and investors. The summit provides unprecedented platform to exchange ideas, knowledge, and strategies on how to increase the efficiency of the real estate sector and create attractive economic opportunities as per the international standards to enable and attract more international investments, while creating a distinctive administrative environment that ensures investment opportunities in the sector.
SA Major Projects Conference Adelaide, Australia The South Australian Major Projects Conference is back in its 11th year and will take place at the Adelaide Convention Centre. The two-day conference will profile major infrastructure projects across the State, which will create employment opportunities in years to come. The event will also provide a platform to explore the plans and polices of the newly elected Liberal Government, which include better infrastructure planning and more transparent decision-making to support long-term economic growth and more jobs for South Australia. The event offers delegates the perfect platform to discuss topics and issues presented in addition to providing fantastic networking opportunities with key industry stakeholders.
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T H E P OI N T E A DA Z Z L I NG E N T E RTA I N M E N T & DI N I NG DE ST I NAT ION AT PA L M J U M E I R A H OPENING WINTER 2018
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