August 2018
THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS
CIA 2018 A quick look at the upcoming Construction Innovation Awards 2018
Dubai raises retail bar A tech-driven retail destination in the making at Dubai Creek Harbour
P36 - Binghatti Developer’s young chief on the company’s success
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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
August 2018 // Issue #42
8 Ed Note 12 News 24 Comment
Hepher Associates’ Kieran Chauhan gives us an insight about his journey in the Middle East construction industry
26 Comment
Shaher Mousli from AMPG talks about the investment opportunities in Sharjah
28 Comment
Rob Jackson from RICS highlights the importance of enabling best practices in the construction industry
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construction business news me // August 2018 //
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Business
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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
32 Face to face
Binghatti Holding chief, Muhammad BinGhatti, talks about the developer’s successful market run in the UAE
36 Cover Story
Dubai Holding and Emaar unveils Dubai Square, a techdriven retail destination in Dubai Creek Harbour
42 Interview
Safdar Badami, MD, Al Muqarram Industry, talks about the future plans for the company
44 CIA 2018
A teaser to the upcoming Construction Innovation Awards 2018
48 Case Study
The Address Downtown hotel in Dubai reopened two years after the devastating fire
60 Editor’s Pick 62 Diary
Marketing Executive Mark Anthony Monzon mark@bncpublishing.net Photography Hayder Al-Zuhairi
SUBSCRIBE subscriptions@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Construction Business News ME contact sales@bncpublishing.net T +971 50 440 2706 All rights reserved © 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 // August 2018
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// Editor's note
editor’s note
Heat wave
It’s summer time in the UAE and people are already feeling the sweltering heat of the sun! And so, has the construction labour market felt the heat in Saudi Arabia with a mass exodus of expat workers recently. With more than 221,000 foreign workers leaving Saudi Arabia between the Q4 of 2017 and the Q1 of 2018, the kingdom’s construction sector has been the worst hit, said a recently released report. All sectors saw a drop in the number of foreign workers, with construction losing the biggest number of expats (about 126,000) along with 18,000 Saudi nationals who left the sector in Q1 2018. Trade, which includes wholesale and retail activities, came second, losing around 53,000 foreign workers. The total number of foreigners in the Saudi Arabia labour market declined by around 796,000 since the start of 2017,
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with about 221,000 leaving the market during the Q1. Also, according to the report, the number of foreigners leaving the market in Q1 2018 was not equally met by the number of Saudis hired. It was found that the biggest share of foreign workers who have left the market in Q1 2018 were receiving less than SAR1,500 per month on an average. These workers range between construction, trade, education, and agriculture sectors. Currently the most challenging thing that the Saudi labour market faces is the creation of new jobs for its nationals. As the previously oil-dependent economy undergoes structural changes, creation of new jobs is touted to be quite difficult. However, the country is trying to diversify to other avenues including tourism, entertainment, and the non-oil sectors, attracting foreign investments over the long-term.
// construction business news me // August 2018
Paromita Dey Editor paromita@bncpublishing.net @paromitadey1 linkedin.com/in/paromita-dey
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// Update An update from around the region
For News, features and more, Visit www.CBNme.com Follow us on twitter for breaking news: @cbn_ME Follow us on Facebook for up-to-the-minute breaking news
Contract
ARADA awards first construction contract for Aljada Phase 1
Property developer ARADA has awarded the main construction contract for the first four Areej Apartments blocks, within Phase 1 of Aljada, to Modern Building Contracting Company (MBCC). Mobilisation will take place onsite in the coming weeks, with full construction set to commence by the end of July. The buildings, which contain the first homes to be built within the 223ha project, are scheduled to be completed by the end of 2019. In total, over 250 units will be 12
built across the four Areej Apartments blocks. HE Sheikh Sultan bin Ahmed Al Qasimi, chairman of ARADA, said: “This award is an important milestone for Aljada as we move into the development phase of this iconic and transformational project. We’re pleased to be partnering with MBCC and look forward to working closely with them to help deliver Aljada’s first homes.” The contract award is the latest announcement at Aljada, the AED24bn mixed-use
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lifestyle destination located on the last large plot of undeveloped land in the heart of Sharjah. In April, ARADA announced the launch of East Village, a 15-building creative community targeting the younger generation, which constitutes Phase 2 of Aljada, while also confirming that enabling work onsite had begun. Also, in April, ARADA signed a management agreement with Emaar Hospitality Group to bring three new hotels, Address Aljada Sharjah, Vida Aljada Sharjah, and Rove
Aljada to the megaproject. In March, ARADA announced that Zaha Hadid Architects had won a global competition to design the Central Hub, the focal point of Aljada, and a new leisure and entertainment destination for the UAE. The first phase of the Central Hub will be completed by the end of this year. In January, the developer also confirmed that the global engineering giant, Jacobs, had won a key contract to design the infrastructure for the project.
Real estate
Aldar on track with its Yas, Saadiyat, and Reem Island projects Abu Dhabi-based Aldar Properties provided its latest quarterly update on its projects under development across key destinations in Abu Dhabi. On Yas Island, Aldar has begun the handover process for the first 300 homes on West Yas, the island’s first villa community. The community retail plaza, which includes the first Spinneys supermarket on Yas Island, is now open. Main construction work is progressing well on Yas Island’s two waterfront apartment communities with concrete and waterproofing well underway at Water’s Edge and cement and blockwork advancing across all five apartment buildings and beach houses at Mayan. At Yas Acres, Aldar’s flagship golf and waterfront development, construction at all 652 villas launched to date are in various stages of completion while infrastructure works including irrigation, gas, potable water pipes,
are making good progress. On Reem Island, Meera is nearing completion ahead of the scheduled handover later this year with all cladding and glazing work now substantially complete. The elevators are in the testing phase, while all internal carpentry and ironmongery in advanced stages of fixing. At The Bridges, a six-building development launched in April 2017, the first phase of the development has advanced to the ground floor
with the second phase progressing well following the completion of piling work. Mamsha Al Saadiyat, a 1.4km mixed-use project located at the Saadiyat Cultural District, is on track to be completed and handed over in 2019 with cladding, glazing work, and promenade construction all underway. The retail units are in final stages and are being prepared for leasing with show apartments ready over the upcoming quarter. Upon comple-
tion, Mamsha Al Saadiyat, meaning ‘Saadiyat Walk’, will offer luxurious beach-front residences with access to a diverse mix of retail, dining, and entertainment offerings. Engineering and structural work is now substantially complete at Jawaher Saadiyat, an exclusive gated community on Saadiyat Island, with finishing and mechanical, electrical, and plumbing (MEP) works making good progress. Jawaher Saadiyat comprises 83 luxury fourbedroom townhouses and four to six-bedroom villas, situated in a prime location overlooking the region’s first championship beachfront golf course, Saadiyat Beach Golf Club. In Al Ain, expansion and renovation work at Al Jimi Mall is moving into its final stages with fit-out works ongoing for a number of tenants, restaurants, and the eight-screen VOX cinema. The opening of the new extension will be later this year.
Al Naboodah Construction Group, a subsidiary of ANGE, celebrated achieving five million man hours without a lost-time accident at its Dubai Creek Harbour site.
Jumeirah’s newest property, the 200-room Al Seef Hotel by Jumeirah, is set to open in September 2018 on the banks of Dubai Creek.
// Bitesize news
Kuwait has awarded a KWD18.6mn contract for the development of its new passenger terminal (T2) at Kuwait International Airport, reported news agency Kuna. www.cbnme.com
Dubai-based developer, Azizi Developments, is offering competitive pricing along with attractive payment plans for its properties in Al Furjan and Palm Jumeirah.
construction business news me // August 2018 //
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// NEWS
Construction
Atkins appointed consultant for Khazaen Economic City
A lot of our business plans in 2018 will focus on productivity, innovation, and efficiency.” Hamish Tyrwhitt, group CEO, Arabtec Holding
Khazaen Economic City (KEC), a master development project in Oman, has appointed Atkins, a member of the SNC-Lavalin Group, as a lead consultant for Khazaen’s master planning, design, and supervision work for OMR2.6mn. The award of the contracts comes after months of in-depth evaluation and discussions with
each of the shortlisted firms, reported Oman Observer. Eng Kalat G Al Bulooshi, chairman of KEC, said: “We are delighted to appoint Atkins as the lead consultant for Khazaen. This is a demonstration of our approach of entering partnerships with global firms with a proven track record in delivering
truly outstanding projects and also implementing true In Country value.” Atkins’ scope of work includes full consultancy services for the integrated urban planning of the city covering 5,150ha, detailed master plan, environmental assessment, sustainability assessment, engineering designs for infrastructure and utilities, and preparation and evaluation of construction tenders for various infrastructure work of the city. Al Bulooshi added that the contract is for five years and can be extended for two additional years upon mutual agreement. The priority will be on completing the engineering and design work of about 500ha area related to the first phase of the logistics and industrial area, the dry port, the truck terminal project, the central fruit and vegetables market, and the central auto market in addition to the head office of Khazaen.
// In numbers
500
500
400
400
300
300
200
200
16
100
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sin
ess
Bay
0
Bu
Homes built by 100 Mohammed bin Rashid 0 Housing Establishment for Q3 2018.
731 648
366 307 281
Source: Cavendish Maxwell
600
ons
600
Lag o
700
The
700
Bu Down rj K to hal wn ifa
800
Vill Ju age me Cir irah cle
800
Mo ha Ras mme hid d Bi Cit n y
500
Top Five Locations for Apartment Sales in Q2 2018 (Off-plan)
Real Estate
// They said...
Azizi awards AED572mn deal for Riviera buildings
UAE-based developer, Azizi Developments, has appointed Majed Hilal Contracting to commence development of Phase 4 for its flagship project in Meydan One, Azizi Riviera, with construction commencing from the end of July 2018. The contractor has been appointed for a value of AED572mn to construct 11 canalside buildings that will make up over half of all developments in Phase 4 of Azizi Riviera. Azizi Riviera Phase 4 boasts a total of 4,753 units
consisting of 3,141 studios, 1,261 one-bedroom, 267 twobedroom, and 84 three-bedroom apartments. Mirwais Azizi, chairman of Azizi Group, said: “As a construction-driven developer, we continue to progress quickly with Azizi Riviera, one of our most ambitious projects to date. We recognise a growing interest in Dubai’s real estate market – and particularly in buying off-plan – and aim to match that with our hallmarks of timely de-
livery, superior quality, and value for money.” Azizi Riviera is the flagship project of Azizi Developments and the architecture, while drawing inspiration from the French Riviera lifestyle, will also contain versatile and contemporary elements. Outdoor recreation and proximity to the business hub of Dubai and other leading attractions, including the Meydan One Mall and the Meydan Racecourse, further contribute to making Azizi Riviera a sound return on investment. A key feature of the Azizi Riviera development is a mega integrated retail district which will consist of high-street bridge brands, leisure, and entertainment options. The development, on the banks of the Dubai Canal, will also offer access to long paved pedestrian paths and water transport, yachting facilities, and a proposed marina, among other attractions.
“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
Dubai remains MENA’s most transparent property market Dubai has retained its position as the Middle East and North Africa (MENA) region’s most transparent real estate market with a range of new government initiatives and an increasingly dynamic proptech industry pushing the emirate up in the global rankings. According to the JLL Global Real Estate Transparency Index (GRETI), Dubai was among the top three improvers globally in the ‘Semi-Transparent’ category and moved up the rankings eight places to 40 out of 100 markets covered in 2018 (from 48 in 2016).
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The emirate has recorded continuous progress and sits on a par with top-tier cities in countries including China (33), Russia (38), and Mexico (39). Craig Plumb, head of research, MENA
at JLL, said: “Our research shows there is a clear relationship between the transparency of real estate markets and the level of investment they attract. One of the key objectives of the Dubai Land Department is to attract more investment and the government have therefore launched a number of initiatives to improve transparency and the quality of information available to real estate investors. If all these initiatives are implemented, then we would expect Dubai to improve further in the global rankings over the next two years.”
“We are thankful to our shareholders for their support and trust in us. ” Mohamed Alabbar, Emaar Properties
construction business news me // August 2018 //
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// NEWS
// The big Picture
Dubai Land Department (DLD) signed a strategic partnership with Dubai Properties (DP), a member of Dubai Holding, to promote Dubai’s real estate sector. Construction
Top 5 Web Stories
Samana Greens project on track for completion
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1
DLD records healthy transactions
2
ARADA awards construction deal
3
Azizi offers payment plans
4
Meraas launches Hatta projects
5
MAF completes redevelopment
Dubai-based real estate developer, Samana Developers, said its AED75mn residential project Samana Greens is on track with the contractor on ground completing 10% of the construction works in 100 days. Samana Greens – a freehold project – consists of 131 residential units, comprising studio to two-bedroom apartments. Located close to the Miracle Gardens in Arjan area, Samana Greens will be easily accessible through two major expressways – Al Khail Road
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and Mohammed Bin Zayed Road – and gives its residents easy access to the major attractions in Dubai. Samana Greens is being developed as per the green building codes with LEED certification utilising best practices – greywater treatment to convert it into irrigation water, use of solar energy/panels to lower electricity consumption, use of green appliances, and sufficient spaces for greenery and moving. The green and sustainable development will complement Dubai’s vision for sustainable projects.
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// NEWS
Real estate
Omran, Majid al Futtaim to develop OMR5bn Muscat project Oman Tourism Development Company (Omran) and Majid Al Futtaim (MAF) have entered a partnership to develop an OMR5bn mixed-use community in Muscat. The joint venture will see the development of a vibrant mixed-use community that will serve as the new urban centre for Muscat. This new partnership plays a major role in Oman national economic diversification agenda and reflects Omran’s strategic role as a catalyst of investment that forges solid partnerships with trusted developers like MAF to create sustainable urban destinations and significant socioeconomic benefits to the sultanate, said a statement. The new mixed-use community is located in the western area of Madinat Al Irfan and spans over 450ha. The joint venture project in-
vestment value is estimated at OMR5bn over a period of 20 years and is anticipated to create more than 30,000 direct and indirect jobs in the country. Centrally located in Muscat’s urban corridor, the development will become the gateway to Oman, cre-
ating a modern downtown for residents, businesses, and visitors. Dr Ali bin Masoud Al-Sunaidy, chairman of Omran, stated: “The development of Madinat Al Irfan is a great addition to Muscat and reflects the vision of His Majesty Sul-
tan Qaboos bin Said to diversify the Omani economy. The overall scale of the project is unprecedented and directly aligns with the government’s vision to invest in sustainable developments to strengthen and diversify the economy of Oman.”
DLD records AED111bn transactions in H1 2018 Dubai Land Department (DLD) has revealed that real estate transactions in Dubai for the first half of 2018 (H1 2018) reached AED111bn. According to the report issued by DLD’s Department of Real Estates Studies & Research, H1 2018 recorded a total of 27,642 transactions, 18,191 sales worth about AED40bn, 7,668 mortgage transactions worth over AED57.6bn, and 1,783 other transactions valued at AED13.4bn. HE Sultan Butti bin Mejren, director general of Dubai Land Department, commented: “The strategic decisions launched by the government are in line with the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and
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Ruler of Dubai, and have had a significant impact on sustainable growth and on strengthening the competitiveness of
// construction business news me // August 2018
the national economy. Granting investors a UAE residency visa for up to 10 years and reducing government fees included
in previous initiatives will be the most important incentives for economic growth in the emirate, as they will have a positive impact on reducing business costs and will support Dubai’s position as one of the best investment destinations in the world.” Regarding the size of the investments, the report revealed that during H1 2018, the Dubai real estate market recorded 19,371 investments through 15,659 investors, totalling AED37bn. UAE nationals topped the list with 2,986 investments worth AED6.8bn, while Indian nationals ranked second — with investments upto AED5.9bn through 3,218 investments — followed by Saudi Arabians with investments worth almost AED3.7bn through 1,415 investments.
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// NEWS
Real estate
Emaar to build Middle East’s largest Chinatown at Dubai Creek Harbour Luxury developer Emaar announced a landmark development that will further strengthen UAE-China relations, coinciding with the historic visit of President Xi Jinping of China to the UAE. To honour Chinese expatriates in the UAE and further bolster business ties with China, Emaar will develop the Middle East’s largest Chinatown within the retail district of Dubai Creek Harbour, its 6sqkm mega-development. The retail precinct will occupy a central location within Dubai Creek Harbour – a destination which will be home to a new icon, Dubai Creek Tower, and encompass vibrant lifestyle elements. Further strengthening Emaar’s outreach to China, the company also announced that it will open three dedicated
pavilions in China – Beijing, Shanghai, and Guangzhou. The three offices will promote tourism, education, trading, and investment between UAE and China. In a third significant an-
nouncement, Emaar will expand its premium luxury hotel and serviced residences brand, Address Hotels + Resorts, to China. Discussions are ongoing to develop and operate Address
branded hotels in key cities in the country. Mohamed Alabbar, chairman of Emaar Properties, said: “The visit of Chinese President Xi Jinping to the UAE is historic and will further strengthen UAE-China relations, underpinned by initiatives such as the UAEChina Week announced by HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai. The development of the new Chinese retail and lifestyle district at Dubai Creek Harbour – as well as Emaar’s expansion into China, both in property and hospitality – highlight our commitment to the country, and our focus on contributing to the strength and success of UAE-China relations.”
Earthworks completed for Majid Al Futtaim Tilal Al Ghaf project UAE conglomerate Majid Al Futtaim has completed major earthmoving work for the first phase of its new flagship Dubai community, Tilal Al Ghaf. The grading works cover around 110ha of the 300ha site. These include excavation for Lagoon Al Ghaf, the community’s landmark swimmable crystal lagoon, and The Hive retail and leisure area that will form the heart of Tilal Al Ghaf, and site preparation for around 550 villas. In addition, earthworks included formation of temporary access roads to the site, comprising the Sales Centre and Show Village. In total, earthworks have excavated around 1.6 million cubic metres of rock and soil from the site. Around one million cubic metres of that has been reused as
22
fill, creating level ground so construction can begin. Hawazen Esber, CEO of Communities at Majid Al Futtaim – Properties, said: “As
// construction business news me // August 2018
a developer, Majid Al Futtaim has established a proven track record of creating landmark destinations with the highest quality standards. The completion of Tilal
Al Ghaf’s first phase earthworks ahead of schedule is a key milestone towards welcoming our first visitors and, ultimately, our first residents onsite to experience our mixed-use lifestyle offering.” The community Sales Centre, Show Village, and parts of Lagoon Al Ghaf and The Hive are expected to be active onsite by Q4 2018. Majid Al Futtaim launched Tilal Al Ghaf, its new flagship mixed-use community in Dubai, in April 2018, representing an AED14bn investment over the next 10 years. The community will feature four neighbourhoods, each having own unique character, with the Serenity and Harmony areas the first two offered as part of the launch phase.
Dubai’s The Sustainable City reduces carbon footprint The Sustainable City, the Middle East’s first fully operational sustainable community, has adopted B100 biodiesel to fuel the construction of the new buildings in Phase 2 including Fairgreen International School, Hotel Indigo, and the innovation centre. The renewable fuel alternative is manufactured from the used cooking oil consumed by the restaurants at the community plaza and will allow The Sustainable City to reduce its carbon footprint by up to 150 tons of carbon dioxide per year during the construction period. Faris Saeed, CEO of Diamond Developers — the company behind The Sustainable City — commented: “As The Sustainable City continues to grow, we
are pleased to be bringing our construction methods in line with our sustainable philosophy. B100 biodiesel minimises nearly all forms of air pollution and particularly greenhouse gases, so while protecting the environment, it will also allow us to maintain the pure, clean, and
untainted environment that our residents enjoy at the community. By switching to B100 biodiesel, we are taking a new step in our ongoing strategy to explore and adopt sustainable solutions at The Sustainable City.” The Sustainable City’s B100 biodiesel
is manufactured from used cooking oil and produced at Neutral Fuels’ bio-refinery in Dubai Investment Park. Compared to conventional gasoline and petroleum diesel, B100 cuts harmful emissions such as carbon monoxide by 50%, polyaromatic hydrocarbons by 90%, nitrogen oxides by 95%, and particulate matter by 99%. B100 diesel is non-hazardous, which minimises occupational risk, and is also sulphur free and 100% biodegradable, meaning it leaves no toxic residues. It requires no engine modifications and its high lubricity, combined with its excellent cleaning properties, make it the ideal sustainable alternative to conventional diesel.
Construction
Al Naboodah Construction bags AED750mn worth new contracts Al Naboodah Construction Group (ANCG), a subsidiary of Al Naboodah Group Enterprises (ANGE), has won a number of new contracts valued at over AED750mn recently. The contracts include construction of new emergency services buildings; roads and street light construction and utilities installation for a residential development; construction of a new corporate headquarters for a leading airline; and four substations for DEWA to accommodate the growing demand from new developments. Three of the four substations for DEWA are contracted to ANCG through Mitsubishi Electric Corporation and are located in the communities of Wadi Al Safa, Al Mamzar, and Warsan in Dubai. The fourth substation will be delivered in partnership with Siemens and will service www.cbnme.com
the Dubai South – Jebel Ali neighbourhood. Work on the substations is scheduled to begin this month and complete early in 2020. Another contract was signed to execute infrastructure works in the greater Meydan
area and entails the construction of roads, landscaping, and the installation of utilities. The corporate HQ complex ANCG is constructing includes a 46,700sqm office building, utility buildings, car parks, boundary walls, and
infrastructure. The fast track project is due for completion by the end of next year. ANCG will construct a dedicated fire station, ambulance station, and police station in a developing precinct with contracts that include fit-out and MEP. Senan Abdullah Mohammed Juma Al Naboodah, ANCG managing director, said: “Al Naboodah’s long history of construction in the UAE, as well as our unique business model which includes being selfsufficient and providing our own asphalt, concrete, MEP, plant and equipment, makes us highly competitive in the industry. For 60 years, the company has focused on delivering excellence in execution and has been instrumental in constructing some of the UAE’s most iconic projects.”
construction business news me // August 2018 //
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// Op-Ed
Inspire the next
Kieran Chauhan, partner at Hepher Associates Limited (HAL), gives us an insight into his journey and thoughts on the Middle East construction industry
I
have always had a strong appreciation for buildings and architecture, from admiring the way in which high-rise buildings are erected to how megaprojects such as The Palm Jumeirah in Dubai was created. My journey into construction was unorthodox as most of my experience post secondary school was heavily focussed within the IT sector, so much so, I even studied the same for one year at University. Prior to commencing the second year of my IT degree, it was evident to me that I had no desire to pursue a career in that sector and therefore within days, I transferred to a degree in Quantity Surveying and Commercial Management. I felt this not only fed my passion for how buildings were constructed, it also best suited my aptitudes. My inspiration to commence a career in the same stemmed from my admiration for buildings/architecture, passion for law, and an aspiration to be part of the process of creating extraordinary built assets for the present and the next generation. From experience, I strongly believe, it does not matter what age you are and/or what stage you are at in your present career; if you truly have a passion in construction, it is one of the very few industries that welcomes nonconstruction professionals. 24
Importance of professional accreditation Attaining professional accreditation with a professional institution demonstrates to others that the person possesses the knowledge, ability, competence, professionalism, and ethical values to a high standard. Since relocating to Dubai in 2015, I have recognised there are several professional institutions available and with so many to choose from, it can be difficult to decide which one to join. Therefore, I felt it would be useful to provide some points to consider when selecting a professional organisation to be affiliated with: • Presence – a professional body with a global presence demonstrates reach and is better placed to act for third parties and support its professionals from a national to an international level. • Establishment – a long established professional body has evidently gone through the motions of constantly developing itself over several years and showcases credibility to third parties. • Assessment criteria – the more rigorous the assessment criteria are, results in only the top calibre of individuals becoming members and, as a result this, upholds integrity and demonstrates the high level of professional
// construction business news me // August 2018
and ethical standards the professional body stands for. • Innovation – the extent of involvement in innovation to help counter the challenges the industry is facing and how the organisation supports the way in which the industry moves forward, e.g. this could be by publishing global standards, detailed guidelines, mobile applications, etc. • Training – does the professional institution offer training and education to its members in the form of courses, lectures, workshops, or online resources? The future of the industry is the next generation; hence, support and training need to be readily available to ensure the profession keeps moving forward in a positive direction. Middle East construction It is evident that the Middle East construction industry has been significantly impacted by the fall in oil prices which we are still feeling the effects of to date. The reduction in oil revenue continues to impact on the number of contracts awarded and according to MEED, the year 2017 was the worst year for contract awards within the GCC construction industry since 2012. With a reduced number of project opportunities, this has increased the competition
and Oman will have implemented the tax to generate further revenue. We are also seeing a number of recurring trends for disputes within the industry such as: • Delayed payments due to funding constraints; • Incomplete/inconsistent contract documentation; • Changes to the scope of work post contract; • Onerous contract conditions; • Poorly drafted / unsubstantiated claims.
With the backing of a recognised university degree, support from peers, and affiliation with a globally recognised professional institution, professionals can excel in the construction industry, have the ability to travel the world, and also be afforded with opportunities to work on remarkable projects.” and, so we have seen in recent years, many contracting organisations committing to more onerous contract conditions, unrealistic project timescales, and reducing their contract prices in order to secure work which inevitably causes disputes along the way. However, the year 2018 looks to be more optimistic with oil prices increasing and the announcement of regional mega projects such as Abu Dhabi, www.cbnme.com
Dubai, and Saudi Arabia’s Vision 2030. These megaprojects coupled with ongoing projects such as Dubai Expo 2020 will undoubtedly, significantly increase construction activity. Furthermore, the recent introduction of VAT will also help fund the construction economy especially for the UAE and Saudi Arabia both of which introduced VAT from January 1, 2018, and from 2019, Bahrain, Kuwait,
For professionals looking to either enter the industry or become chartered with an institution, especially in competitive regions such as the Middle East where professionals from all around the world are relocating to work, I would advise them to closely consider the points discussed earlier. Furthermore, for young professionals entering an industry with no prior experience can seem daunting. However, professional institutions such as the RICS and CIArb allows its young members to be part of a global support network of professionals to make the transition easier. With the backing of a recognised university degree, support from your peers, and affiliation with a globally recognised professional institution such as the RICS and CIArb, professionals can excel in the construction industry, have the ability to travel the world, and also be afforded opportunities to work on truly remarkable projects. It’s a privilege to be awarded Fellowship at RICS at the age of 28 and to be part of a global network of professionals that share a common ethos and objectives. Since attaining Membership with the RICS (MRICS), I have continuously delivered back to the organisation and the profession as I strongly believe it is important to circulate knowledge and give guidance wherever possible to benefit third parties. The Fellowship will undoubtedly have a positive influence upon my career progression opportunities due to the internationally recognised status. The credentials speak for itself and showcases credibility amongst my professional network.
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// Op-Ed
Path to success Shaher Mousli, CEO, Arthur Mackenzy Properties Group (AMPG), talks about the growing investment opportunities in the UAE’s third largest emirate, Sharjah
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harjah, popularly considered the cultural capital, is the third largest emirate in the UAE. The emirate plays an important cultural and economic role in the region. Sharjah is home to a number of commercial, educational, and cultural institutions, and enjoys a unique location since it overlooks the Persian Gulf on the West and the Gulf of Oman on the East. The discovery of oil resulted in an economic boom; however, the emirate’s leadership was focused on establishing a non-oil economy quite early on. This resulted in development of a diversified industrial base, highlights Oxford Business Group (OBG) in its 2018 Sharjah Report. The four largest sectors that drives Sharjah’s economy are manufacturing, accounting for approximately 16.9% of GDP; real estate with 13%; wholesale and retail trade with 12.1%; and financial services with 10.3%. The prudent model of a diversified economy, with no single sector comprising more than 20% of Sharjah’s GDP, ensures that oil price volatility has moderate effects on the local economy. According to Sharjah Update, aviation, construction, healthcare, manufacturing, real estate, retail and distribution, and tourism were the top contributors to Sharjah’s economy last year. OBG’s Sharjah Report 2018 highlights that the emirate has had propelled success in developing its industrial and manufacturing sector through a network of free zones and industrial zones that continues to develop and expand, and is one of the main industrial bases of the UAE. As per the information in Sharjah Update, 44% of AED22.1bn government budget has been allocated to 26
In 2017, government-backed initiatives propelled global firms, SMEs, and local start-ups to set up in Sharjah which in turn created an influx of investment across the robust sectors.” economic development, Sharjah is expected to continue investing strategically in developing key industry sectors through 2018. A key attraction for investors looking towards Sharjah has to be the network of free zones. Hamriyah Free Zone
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(HFZ), adjacent to Hamriyah Port, and the Sharjah Airport International Free Zone (SAIF Zone), next to the airport, offer 100% foreign ownership among many other advantages. Both zones are industry focussed. Sharjah Publishing City is a 40,000sqm publishing business-focussed zone that was inaugurated in 2017. A large printing facility is due to open this year to be followed by a second phase the following year. Sharjah is an important destination for the publishing industry in lieu of hosting the annual Sharjah International Book Fair. UNESCO designating the emirate as the 2019 World Book Capital offers an array of opportunities for the industry as a whole. Other free zones announced by the government and under various stages of development are Sharjah Media City, which will focus on the media and creative industries, as well as innovation more generally, Sharjah Healthcare City, and the Sharjah Research, Technology, and Innovation Park. The zone will aim to leverage research activities at nearby universities, hosting a range of R&D-oriented start-ups and businesses, which are definite steps in the right direction for a progressive city. Besides developing specialised, investor-friendly zones, government policies are aimed at fostering privatesector growth, and the emirate’s diversification has helped ensure continued investment into the economy. In 2016, Sharjah Investment and Development Authority and the American University of Sharjah (AUS) established the Sharjah Entrepreneurship Centre, known as Sheraa. It offers newly formed startups a 12-week accelerator programme, equity-free funding of up to $10,000 and rent-free office space.
In 2017, government-backed initiatives propelled global firms, SMEs, and local start-ups to set up in the emirate which in turn created an influx of investment across the robust sectors in Sharjah’s economy. Robust real estate sector There has been a surge in construction projects in Sharjah since late 2017 and this can be partly attributed to the increased budgets in infrastructure development in line with general upliftment in the regional economy. In addition, Sharjah has an annual population growth rate between 6% and 7% which directly translates into a healthy demand for residential properties. According to OBG, ‘much of the new work is addressing previous shortages in areas such as gated and lifestyle communities, high-end offices and retail premises, and more modern industrial estates’. Traditionally, buying and renting residential property in Sharjah has been pegged to Dubai. People move between the two emirates depending on the economic climate. The emirate has offered affordable housing option for people working in Dubai. Sharjah Real Estate Registration Department reports that it registered a 46% increase in the number of real estate sales transactions during the first six months of 2017 and announced a 37.2% increase in the value of real estate transactions made in the third quarter of last year. A significant facelift is also underway for the retail and leisure sector to meet the rising demand of residents and investors in the emirate. You may recall that in 2014, Sharjah government opened its realty market for foreign investment by allowing expatriates with a UAE visa to buy property in the emirate. This year, the government has passed a legislation whereby non-Arab nationals without a UAE residency visa purchase property in the emirate on a 100-year renewable land lease. It is only fair to say that the range of www.cbnme.com
mixed-use real estate projects in the pipeline for the next few years, and favourable legislations are bound to transform Sharjah’s built landscape and global appeal for investors as well as visitors. Tourism Tourism is another key area for the emirate in its diversification program. In line with this, the Sharjah Commerce and Tourism Development Authority’s Vision 2021 initiative aims to attract 10mn visitors by 2021. According to the insights shared by OBG, ‘the strategy, launched in 2015, seeks to build the emirate into a top regional destination for family tourism by investing in a range of ecotourism and cultural attractions. The initiative has contributed to a rise in both public and private investment in the sector, with more than $400mn in new hotel investments announced in 2017 and a $408mn expansion to Sharjah International Airport expected to bring annual capacity from eight million to over 20mn passengers’. Cultural, educational, and ecotourism also rank high on the tourism sector’s agenda offering various investment avenues further backed by supportive government legislations. Human Capital The 2018 Deloitte Global Human Capital Trends report indicates that
‘organisations are no longer assessed based only on traditional metrics such as financial performance, or even the quality of their products or services. Rather, organisations today are increasingly judged on the basis of their relationships with their workers, their customers, and their communities, as well as their impact on society at large — transforming them from business enterprises into social enterprises’. Sharjah upholds valuing human potential and appreciates what an individual can bring to society. Experts have developed strategies that combine global trends with cultural sensibility to build on human capital that will positively contribute to maintaining the appeal and pulse of the emirate. Sharjah is home to renowned educational institutions such as the American University of Sharjah and the University of Sharjah. Given the numerous developments that are underway, there is room for more international institutions that the government will gladly support and encourage since quality education is given prime important for the emirate’s growth agenda. To conclude, whether it’s affordability, return on investment or long-term growth that you are looking for, Sharjah is a sound option and without a doubt a rising investment hotspot on the regional as well as the global map.
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// Op-Ed
Value Addition Rob Jackson, RICS’ regional director, highlights the importance of adding value and enabling best practices in the construction industry
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s the role of Quantity Surveyors (QS’s) develops in the construction market, recognition of the benefits they bring to the built environment grows accordingly. Not just number crunchers, professional quantity surveyors help shape the world we live in, offering contractual and commercial advice to clients in the construction industry. Qualified Chartered QS have the ability to save clients and businesses millions each year through effective procurement and financial control planning. With nearly 22,000 active projects across the region, practical and skilled application of key techniques is essential to ensure that projects run smoothly and provide value for money. This has led to surveyors in the region facing a competitive and challenging market, with the demand 28
As the region’s construction activity develops, ensuring a robust, reliable, and effective cost management procedure is essential throughout the lifecycle of a project.” for experienced talent being greater than ever before. As the UAE gears up for Expo 2020 and Saudi Arabia works towards its
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development goals for Vision 2030, there is an increased regional focus on effective cost management and sustainability in construction projects, thus creating a level of expectancy on quantity surveyors in providing expert cost management services to the construction industry. Significance of effective cost management As the region’s construction activity develops, ensuring a robust, reliable, and effective cost management procedure is essential throughout the lifecycle of a project. Keith N Bennett FRICS, RICS Chair of Regional QS and Construction Board, believes that an effective cost consultancy is particularly crucial for a contractor who, in the case of an additional request for payment or dispute, has a contractual
obligation to prove his entitlement. “Without cost management, both within the contractor and client’s project monitoring team, disappointment, delays, and losses are inevitable which will involve all concerned parties including suppliers and sub-contractors. This can be avoided by adopting clear and concise cost management procedure at the outset.” With the construction sector poised for accelerated growth and many complex ambitious projects on defined and fixed completion dates, the attention to cost management is becoming crucial to all those involved in the process. However, as Bennett expressed, “some clients who have short-term goals prefer using competitive tenders, particularly in a fierce competitive market where margins are slim. This can lead to delays, prolongation, inflationary costs, mistrust, and adversarial situations. It has been clearly demonstrated and proved that early recognition of issues, with cost consultants involved from the very beginning confronting potential disputes at the root and dissipating the situation before it manifests into a stand-off, is crucial and benefits all parties immensely.” Standardisation According to a recent report by JLL, Dubai government passed their largestever budget for 2018 (AED57bn), where 20% will be spent on infrastructure, which is an increase of more than 40% since 2017. Large-scale infrastructure projects are usually quite complex in nature, whereby precise requirements of being on-time and on-budget need to be implemented to prevent major disputes between parties. Inconsistency and lack of clarity in comparing and benchmarking project costs is also a huge global problem that surveyors face. For effective cost management throughout a project’s lifecycle, utilising standards such as the International Construction Measurement Standards (ICMS) is critical. ICMS not only provides transparency, www.cbnme.com
Rob Jackson
accurate cost prediction, and management, but also supports surveyors in making more informed decisions and reducing disputes. Attaining the technical skills Cost consultancy needs to be utilised from the design stage through to the construction, and operational phase of a built asset lifecycle. Therefore, the role of the cost consultant needs to encompass all aspects from the ground up. In order to assist professionals in the construction industry and provide them with knowledge on the fundamentals of cost management, procurement, technology, partnerships and collaboration, lifecycle costing and planning, cash flows and evaluate contract forms, RICS has launched two
essential training programs namely the Quantity Surveying: Foundation and Quantity Surveying in Practice. These courses provide all the necessary basic competencies and tools required and expected of the profession. Whether construction professionals are keen to understand and gain the key underpinning principles of quantity surveying, or looking to move into the profession, or simply quantity surveying BSc/MSc graduates, they can all benefit from these training programmes. As the market grows, quantity surveyors need to ensure they have the skills that allows them to address the key challenges presented by assessing and communicating risks at all levels in the world of construction.
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// Report
Affordability On the rise A decrease in average sales and rental prices was recorded across key areas in Sharjah and Ajman, reveals dubizzle Property’s new report
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AE-based property platform, dubizzle Property, revealed its Northern Emirates report, comparing rentals and sale prices trends from the first six months of 2017 to H1 2018. With the increasing popularity of rental and sale properties in the Northern Emirates, dubizzle reveals key changes in the property landscape in order to empower consumers to make more well-informed decisions. The report findings indicate an 30
overall prominent decline in rentals and sale prices in both Sharjah and Ajman across apartments and villas. Rents decline in Sharjah in H1 When analysing the rental prices of apartments, a decrease in average prices was recorded across key areas. Al Nahda and Al Khan experienced the biggest drops, with a decrease of 16% from H1 2017, followed by Al Taawun, which saw a 14% drop, and Muwailih Commercial where rents are down by
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2%. Two-bedroom rental apartments in Al Nahda saw the largest decline, dropping 20%, putting the average cost for a two-bed at AED36,000. However, apartment sale prices in Sharjah showcased slightly different patterns. The most popular Al Khan area saw a slight increase in average sale prices by 4% while other key areas experienced a drop in the prices. Sale prices in Al Majaz fell by 19% while Al Nahda decreased 9% and Al Taawun saw a fall of 4%. Al Nahda, Muwailih Commercial,
and Al Taawun were the most popular areas amongst dubizzle property seekers for both sale and rent. Ajman experiences drop in prices Ajman witnessed a similar decline in both rentals and sales prices, with properties dropping even further than Sharjah. Apartment rentals across the entire emirate decreased. Al Jurf and Ajman industrial area saw the largest drop in rental prices in 2018 with a decline of 18% from 2017. This is followed by Al Sawan with a 14% decrease and Emirates City, where prices have dropped by 10%. Samer Abdin, general manager at dubizzle Property, says: "Across the UAE, properties are becoming more affordable resulting in a decline in cost of living. We are seeing an oversupply of property units in the market right now which has created a more competitive and affordable market. Our data highlights that apartment sale prices in Ajman, in particular, have fallen at a more pronounced rate than rental prices, giving property seekers an excellent opportunity to invest in their own property.� The greatest decline in average sale prices of apartments was in Al Nuaimiya, which fell 23%, closely followed by emirates city with an average decrease of 21%, and Al Mushairef coming in last with a 19% decrease compared to 2017. While these areas experience heavy declines, Al Sawan experienced the lowest decline in average sale price, dropping by only 10%. Overall, villa prices for both sale and rent have also significantly declined. When looking at the most searched areas amongst dubizzle users, Emirates City, Al Nuaimiya, and Al Sawan were amongst the top areas for both sale and rent. With over 130k listings at any given time and over 100k daily visits, dubizzle Property regularly shares insights and trends into the property market in Sharjah and Ajman. www.cbnme.com
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// Face to face
We’ve always decided to keep few projects in the market every year for end-users to keep our name and stay ahead of the game.�
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Ri si ng ab ove
Th e r e s t Muhammad Binghatti, CEO and head of architecture at Binghatti Developers, talks about how he spearheaded the developer’s successful journey within a short span of time The Dubai real estate market is today less speculative and more fundamentally-driven,” believes the young and dynamic chief executive officer (CEO) and head of architecture, Muhammad Binghatti, of Binghatti Developers. The real estate development branch of Dubai-based Binghatti Holding, Binghatti Developers, was established three years ago and the portfolio grew to more than 30 projects in excess of AED3.5bn year-to-date. A third-generation entrepreneur, Binghatti, opines that the mantra of the company is to transform the ‘Art of Property’ into reality. An architect with interest in art and poetry, Binghatti always has his focus fixed on how the design of the building could be iconic, environmentally friendly, cost effective, and very functional to provide attractive products to both end-users and investors. “We’ve grown the company by earning repeat business from customers and institutions such as national bonds, large hotel groups, and private investors. Essentially, once they get a taste of the investment potential and the strong returns that we offer in our properties, they come back for more. This has given us a strong name in the market, especially for these institutional investors, and we are proud to say that they keep coming back to us out of all the other developers in Dubai. “We’ve always decided to keep few www.cbnme.com
projects in the market every year for end-users to keep our name and stay ahead of the game in terms of enduser trends, offering something unique and innovative while at the same time, ensuring good value for money, highquality materials and finishing, great locations, and delivery on time.” Projects portfolio The developer is currently working on more than 30 projects in Dubai including Millennium Binghatti Residences, Binghatti Stars, Binghatti Crystals, Binghatti Sapphires, Binghatti Vista, Binghatti East, Binghatti West, and Binghatti Platinum to name a few. Binghatti mentions: “The latest and most prominent development we are working on is Millennium Binghatti Residences, a luxurious waterfront tower, located in Business Bay and inspired from the Millennium Hotels and Resorts. The project consists of 230 units including studio, one- and two-bedroom apartments, and offers a number of hotel-inspired lifestyle amenities. The building also features direct views of the Dubai Water Canal and Dubai skyline.” The tower features several hotelinspired lifestyle amenities such as a health club, swimming pool, jacuzzi, panoramic lifts, covered parking, landscaped garden, in addition to various services which include grocery, housekeeping, concierge, day-care, catering, laundry services, 24/7 grocery services,
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// Face to face
Binghatti Stars features 362 residential apartments
24/7 maintenance hotline, as well as many other premium facilities. Officially launched at Cityscape Global 2017, one of the company’s other projects, Binghatti Stars, is a building that features 362 residential apartments and is located in Dubai Silicon Oasis. The tower showcases a mixture of unit types, including studio, one-and two-bedroom apartments, along with a plethora of lifestyle amenities including a health club by Technogym, a heat monitored swimming pool and jacuzzi, a children’s play area, and a public terrace for residents to enjoy. Binghatti says: “The project was launched with the powerful idea that a building with iconic design, high quality materials, and an uncompromised finishing could be built and sold for a reasonable price in Dubai. As a developer, we realised that the market was saturated with luxurious, high-end real estate projects that were out of reach for the average Dubai resident. We capitalised on this phenomenon by specialising on the mid-segment niche of the market and were able to sell out the majority of the building to end users earning between AED15,000 and AED30,000 per month. “In line with HH Sheikh Mohammed’s initiative for affordable housing, we focused our efforts on reducing costs for the typical end user looking for a home in Dubai. This includes keeping ongoing maintenance and ser34
Millennium Binghatti Residences is a luxurious waterfront tower in Business Bay
vice fees as low as possible at AED10 per sqft, something developers in this segment often overlook when delivering projects in the mid-segment of the property market.” The developer, with a constant growth in its portfolio, is planning to launch four projects in Dubai Land Residence Complex, 10 projects in Jumeirah Village Circle (JVC), three in Business Bay, and two in Al-Jaddaf, along with different projects in Liwan as well as numerous other projects in Dubai Silicon Oasis soon. Binghatti mentions that the company will announce the special projects at Cityscape Global 2018 and “intend on getting a lot of attention at the event”. Market trends According to the JLL Global Real Estate Transparency Index (GRETI), Dubai has retained its position as the Middle East and North Africa (MENA) region’s most transparent real estate market with a range of new government initiatives and an increasingly dynamic proptech industry pushing the emirate up in the global rankings. Binghatti says: “The UAE is the most stable of all the real estate markets in the region and Dubai is our area of expertise. We’ve noticed a lot of institutional investors involved in the market, particularly in Dubai. RERA’s regulations and easing of business has allowed these banks to start operating more aggressively. There is more transparency and
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a lot more on what’s happening in the market and this gives the insight necessary for these funds to take actions and make decisions on investments.” Affordability has become a trend in the current real estate market and more investment has been going towards it. He says: “We’ve witnessed a shift into affordable housing over the past few years. Moreover, buyers are eyeing real estate investments as alternative homes, further increasing end-user demand. At the same time, the decline in the number of irrational investors, who make purely speculative investment decisions, has meant that the market is now more stable, sustainable, and attractive due to its decreased uncertainty.” Also, according to Binghatti, another important achievement is the evolution of RERA’s regulations. “In fact, RERA has done a tremendous job of enacting regulations that stabilise the market. For some
Muhammad Binghatti, CEO and head of architecture at Binghatti Developers
time now, these regulations have been acting as a balancing force between the interests of both investors and developers. This has contributed to a more equitable investment ecosystem. Ultimately, the development and advancement of the real estate regulatory framework in Dubai promotes further trust and certainty, therefore stimulating further demand for real estate developments.” Finally, being a young entrepreneur himself, Binghatti believes that Dubai’s younger inhabitants now perceive the emirate as a long-term home. “This was not always the case previously when young adults used to consider Dubai as a transitionary place where they work for a few years and leave thereafter. Consequently, more young adults are prepared to invest in and own property today than ever before. This certainly has a positive impact on the market as it avails more liquidity. As people settle down for longer terms www.cbnme.com
and own more property, their sense of stability increases which boosts their confidence as consumers. This translates into a higher propensity to consume which has positive spillover effects on the whole economy.” Future outlook Being a highly ambitious company, Binghatti hopes to reach a portfolio worth AED7bn by 2022, and “we will achieve this goal if we keep growing with the same pace”. He opines: “We are currently operating in several areas of Dubai through a portfolio of more than 39 projects worth AED3.5bn. We have already acquired a land bank of approximately 37ha across Dubai, and we are also looking forward to expanding in different areas of the emirate.” The developer will continue its expansion during the coming two to three years and have always planned a minimum of exponential growth every
year. The chief mentions: “For example, if we build two buildings in a year, we make sure to develop four buildings in the following year, and another four in the subsequent one. I believe that our strategy has been the same for the past three years in terms of growth. When it comes to design, we are willing to continue our branding through our architecture, except that we will raise the bar higher in terms of the types of design and style that we develop.” The company will also continue to focus on providing solutions for both institutional investors as well as end-users. Binghatti continues: “We continue to see Dubai as a very high potential market and feel that there is still a lot of growth available in the market especially leading up to the Expo 2020. In addition to this, we are seeing more institutional investors and real estate funds and investment banks getting involved in the property market, which is always a good sign. “It shows that there is a lot of maturity taking place and that there are a lot of enhancements in terms of regulation. The market is becoming more transparent which gives more comfort to these investment banks and funds to invest more money in Dubai. Concerning the end-user market, we will have projects in some of the upcoming areas in Dubai such as Millennium Binghatti Residences in Business Bay, Al Jaddaf, JVC, and of course our hub - Dubai Silicon Oasis.” According to Binghatti, the firm is mostly focusing on residential development, and more specifically, the mid-segment market. He concludes: “It’s no secret today that Binghatti Developers’ strength is in the midsegment property market and that it is leading this segment as it has been synonymous with a meticulous balance of quality and affordability. The company has successfully delivered numerous projects offering holistic solutions for end users. Moreover, the company has proven itself as a viable alternative to some of the largest market players in Dubai, strengthening its reputation with an extensive portfolio of completed projects.”
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// Cover story
Usher in a new era
Dubai Holding and Emaar champion new era in retail with Dubai Square, a tech-driven retail destination in Dubai Creek Harbour
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usiness conglomerate Dubai Holding and Emaar Properties have announced the launch of Dubai Square, a new retail metropolis that pushes the boundaries of modern retail and leisure in Dubai Creek Harbour by drawing on next-generation technology. Blurring the boundaries of online and in-mall shopping, integrating indoor and outdoor, and delivering a social experience like none other, the all-new Dubai Square is designed for the new era of customers - digital, connected, and tech-savvy - and setting a benchmark for retail experiences. Mohamed Alabbar, chairman, Emaar Properties, said: “Dubai Square disrupts the traditional mall and retail experience. Focused on the aspirations of the new generation of customers, it reflects the vi-
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sion of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, to position Dubai as a global hub and a smart city. Dubai Square will play a pivotal role in further establishing Dubai as the next champion of global retail. “With Dubai Square, we are delivering a new destination experience that will bring incredible value to our retail partners. Dubai Square is where technology meets the human touch, and retail meets next-generation entertainment. With its omnichannel offering, it not only drives instore retail but also the online engagement of brands with customers. With its location in Dubai Creek Harbour, and by serving as the closest mega-retail district to millions of passengers passing through the Dubai International Airport, it meets the real need
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for a new generation lifestyle destination, especially given Dubai’s growth in population and tourist arrivals.” HE Abdulla Al Habbai, chairman of Dubai Holding, said in a statement: “Dubai is experiencing tremendous tourist inflow and continues to rank highly as a holiday destination for people from many different parts of the world. The city’s appeal is anchored in its strong leisure and entertainment, retail and hospitality industry, the foundations of which Dubai Holding helped build and strengthen over time. Dubai Square is our new retail and leisure destination, and with this, we aim to actually redefine the shopping experience by introducing a variety of innovative concepts. This is our latest endeavour to bring the best to Dubai, as part of Dubai Holding’s promise, ‘for the good of tomorrow’.
Dubai Square • Gross floor retail space of 750,000sqm • 260ha of retail, hospitality and residential gross floor area • 570ha total built up area • 9,262 residential units in Dubai Square District • 1,563 hotel keys in Dubai Square District • Spread over three levels • Several lifestyle districts including the region’s largest and first Chinatown spread over three floors • Leisure attractions include an ice park, water park, and entertainment arena
“Dubai Holding has always been at the forefront of Dubai’s socio-economic growth through our contributions in building a range of strategic sectors. The retail sector is one of the pillars driving happiness amongst tourists, locals, and residents alike, and as such remains a key focus for us. We continue to play an important role in its development for the benefit of Dubai’s future, in line with our leadership’s vision of a happy and prosperous nation.” Dubai Square is set in the heart of Dubai Creek Harbour, the six sqkm mega-development only 10 minutes from the Dubai International Airport and Burj Khalifa by Emaar, as well as set by the historic Dubai Creek. Dubai Square will also be the closest mega-retail district to millions of visitors passing through Dubai www.cbnme.com
International Airport. It will play a central role in driving retail sales in Dubai, expected to be over AED160bn by 2021, and serving the estimated 20 million tourists to the city by 2020. Dubai Square will also feature an eclectic mixture of styles and references. The inspiration comes from leading cities across the world, with the fashion selection at the retail outlets drawn from London’s Oxford Street, Los Angeles’s Beverly Hills, Paris’s Champs-Élysées, Tokyo’s Ginza, Piazza della Republica in Florence, and Madrid’s Plaza Mayor, to name a few. Dubai Square will be linked directly to the Dubai Creek Tower through a cuttingedge underground extension. Here, the visitors can revel at a plaza at the base of the Tower. The Plaza is a clock-shaped haven of landscaping, palm trees and water
features sprawling across half a kilometre of land – the length of 10 Olympic sized swimming pools. Designed for the modern consumer Dubai Square is designed with the modern consumer in mind. Offering experiences that go well beyond traditional shopping, it offers an assortment of spaces to socialise in an authentic city atmosphere and raise the bar. Equivalent to the size of more than 100 football pitches - with over 750,000sqm of gross floor retail space – Dubai Square pushes the boundaries of design and mall layout. It is spread across three levels, each presenting a unique set of experiences to the customer. Skylights, glazed roofs, and shopfront windows will be part of the sensory visitor experience. Parks, patches
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// Cover Story
of green and lush landscaping will provide a natural balance to state-of-the-art facilities. Special LED technology is set to drive impactful and interactive backdrops and delight customers throughout their journey. Driven by tech Technological innovation permeates every aspect of Dubai Square’s function. Championing ‘omnichannel retailing’, it will offer customers a seamless blend of shopping via desktop, mobile, or at a retail store. The physical and the digital at Dubai Square co-exist in harmony, with stores acting as showrooms for their online presences. Digital conveniences will include custom-designed mobile apps, quick checkout solutions, search and barcode scanning applications, radio-frequency identification technology, mobile payments, and click-and-collect services. Dubai Square will also be a playground for tech brands around the world. It will be home to innovators in the automotive, computing, sustainable technologies, 3D printing, drones, artificial intelligence, and other emerging industries. Retail and leisure offerings Dubai Square will be home to the Middle East’s largest of its kind Chinatown, offering a wide range of retail attractions on the league of similar precincts globally. The Chinatown draws on the presence of over 200,000
Mohamed Alabbar, chairman, Emaar Properties
Chinese nationals living in the UAE and the thousands of tourists arriving annually to the country. It builds on the strong Chinese investments in the UAE and the momentum gained by Chinese tourist arrivals with the introduction of visa on arrival by the country. In addition, Dubai Square’s ground floor features an events arena and a broad spectrum of event spaces on streets and alleys. The first floor has a magnificent four-lane boulevard lined with luxury retail, dining, and leisure outlets. Unique immersive experiences will elevate the fashion offering at Dubai Square with special VIP dressing rooms, smart fitting rooms with interactive mir-
rors, curated private fashion collections, personalised AI recommendations, 3Dprinted clothing and accessories, fashion museums, and more. Across the boulevard is a grand luxury avenue, with high-profile brands and a dazzling piazza, and scores of casual dining restaurants. The second floor is a family-friendly haven featuring an impressive array of activities at Ice Adventure, as well as a cutting-edge Cineplex, a waterpark, sports arena, supermarket, and a metro link. A futuristic entertainment arena with 3D projection mapping, theatrical sound and lighting, high wire rigging, and other cutting-edge attributes is at the heart of the offering. This entertainment venue will host concerts and theatre shows, celebrity performances, acrobatics shows, museumquality exhibitions, and more. The culinary experience Whether it's nouvelle cuisine the visitors crave, fusion, vegan, Peruvian, FrenchVietnamese, or a new dining concept, they will be impressed by the high-quality of service in the facilities. Specially designed apps for ordering food and beverage on the premises will minimise queuing and long wait-times, while others are set to provide personalised dining recommendations and 3D-printed food delicacies. Dubai Square will also have live cooking stations, street vendors, festive pop-up markets, grab-and-go F&B offerings, and an organic market.
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Building the UAE’s highest road Jebel Jais is part of the Hajar Mountain Range in Ras Al Khaimah. It is the highest peak in the UAE. And for centuries unreachable by most. For 8 years, a fleet of Volvo FMX Trucks carried a total of more than 5.5 million cubic meters around the clock building a 36 km road that goes up more than 1910 meters. The rugged terrain, steep slopes and loose rock were not a challenge for Volvo FMX, which is built tough for such conditions. That is why more than 30 of our Volvo FMX trucks completed this ambitious road project without any major breakdown. To watch the full video please visit www.volvotrucks.ae/jebeljais
www.volvotrucks.ae/jebeljais
// Cover Story
Dubai Creek Harbour • Located by the Dubai Creek
• 10 minutes away from the Dubai International Airport
• Adjacent to the Ras Al Khor
Natural Wildlife Sanctuary with over 450 animal species
• Views of Downtown Dubai skyline and Burj Khalifa
• Dubai Creek Tower at its core
• Dubai Creek Plaza, 1.5km-long • Creek Island Dubai with 4.5km Creek Boardwalk
• A new age of retail with Dubai Square
• 750ha of residential space
• 940,000sqm of retail precincts
• 300,000sqm of commercial space • 66,000sqm of cultural space • 700,000sqm of parks and open spaces
• 24 hotels with 5,800 rooms
• To be home to over 200,000 people
Art offerings Dubai Square also features an Art District, serving as a crossroads for artists and art lovers from around the world. From tall Giacometti-style sculptures to small terracotta statues, from permanent exhibitions to ephemeral performance art, from large-scale concerts to one-man shows, the universal language of art will come to life here. In addition to serving as a creative hub for young designers, performers, and other creatives, year-round immersive events will integrate retail with dance, drama, literature, painting, music, photography, cinema, and other art forms. The Art District will be driven by Art Emaar, an initiative launched recently to bring new aesthetic experiences to Emaar’s master-planned developments and to engage people through various 40
arts and culture initiatives, underpinned by the showcases of works by eminent artists. A thriving lifestyle destination A one-of-its-kind modern masterplanned destination, Dubai Creek Harbour, is located along the Dubai Creek in the heart of the city. It is only 10 minutes from the Dubai International Airport and Burj Khalifa by Emaar in Downtown Dubai, and next to the Ras Al Khor Wildlife Sanctuary, which is protected under the UNESCO Ramsar Convention, and is a biologically diverse wetland reserve home to migratory birds including pink flamingos and over 450 animal species as well as rich mangroves. Dubai Creek Harbour will be populated with residential towers; a vibrant new precinct that ushers in the future of retail – Dubai Square;
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the Creek Marina with a modern yacht club; parks, green spaces, and promenades; and world-class hotels. Schools, hospitals, and recreational facilities in the vicinity, as well as Dubai’s upcoming iconic mosque, will round off the ideal family and tourist destination. It will feature four Dubai Metro links adding to the connectivity to the Dubai Creek District. With over 750ha of residential space, nearly 940,000sqm of retail precincts, 300,000sqm of commercial space, over 66,000sqm of cultural space, 700,000sqm of parks and open spaces, and 24 hotels with 5,800 rooms, Dubai Creek Harbour will serve as a strong economic catalyst for Dubai. When completed, Dubai Creek Harbour will be home to over 200,000 people, and be a thriving economy that drives the tourism, retail and hospitality sectors of the city.
// Interview
Seal the deal Safdar Badami, managing director, Al Muqarram Industry (AMI), talks about sustainable products and future plans for the company
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// construction business news me // August 2018
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l Muqarram Industry (AMI), one of the UAE’s leading manufacturer of silicone sealants, adhesives, adhesive tapes, coatings, aerosol products as spray paints, rust remover, and car care products, introduced Dolphin fire stop silicon sealant early this year. The ultimate line of defense against fire and smoke, the silicone sealant was certified by the UAE government, making AMI the first certified silicone sealant manufacturer in the UAE. In an interview with CBNME, AMI MD, Safdar Badami, throws light about the company’s success and its array of innovative products. Give us a brief overview of the company. With business experience of two generations, Al Muqarram Industry (AMI) has developed a strong research and development (R&D) department who creates a specialised formula for each product. Under our brand, Dolphin, we sell a wide range of silicone sealants, adhesives, coatings, tapes, and aerosol products. We are known for selling products of high quality at prices that suit our customers. After analysing the market in 2012, AMI expanded its trading business through a new division called the Al Muqarram Trading Company in Dubai. In 2014, the Al Muqarram Group established a new factory- Al Muqarram Air Fresheners and Paint Industry. A team of experienced, highly qualified, and trained professionals in sales, distribution, logistics, and customer service have brought together the group’s arms. Today, Al Muqarram represents a group of companies providing industrial and commercial solutions in the UAE market, and business network on global level. We connect the quality and customers in each corner of the world. What are the construction products that you have for the GCC market currently? AMI, under its brand, Dolphin, creates high quality products for the construction and automobile sectors. Sealants, adhesives, coatings, aerosol, and car care www.cbnme.com
AMI wants to elevate the lifestyle of its customers by giving them products that are high on utility.” are among high demand on building materials and automotive sector in the Gulf and, with a diligent research department, AMI has been a prominent manufacturer for these products since the year 2000. Alkoxy and neutral cure sealants are one of our top products within the Dolphin Weather Sealant. With extreme climate changes, Aquafix and Bitumenous Waterproofing will play a big role in the years to come due to the climate changes. Contact and floor adhesives are also products to watch out for. Any plans for new products for the construction sector this year? Dolphin aims at developing an entire range of fire rated products, especially keeping in mind the strict fire prevention guidelines given by the UAE Ministry of Interior Civil Defense. Lastly, in connection with our Dolphin Fire Stop Fire Rated Sealant, we need to have it approved by either Dubai and Abu Dhabi Civil Defense. Give us an overview about your market presence in the region. How do you differentiate from your competitors? AMI wants to elevate the lifestyle of its customers by giving them products that are high on utility. Everything we do is underpinned by our corporate values and our day-to-day actions are guided by our business conduct policies. In fact, our Dolphin Weather Sealant is now making names against Dow Corning and Sika products. Hence, we know that we are in the right direction and should continue on this path. Almost 46 building materials and 23 car care products are being sold which reiterates that we are among the com-
petitive manufacturers in the UAE. This has all been due to our commitment to quality resulting in a steady growth, success, and achievements. Our competent team of professionals has innovated quality products while keeping them affordable. In a short span of time, AMI has evolved greatly, earning a reliable brand name and trusted business partners. Dynamic and progressive, we believe in having the right attitude. AMI follows cutting-edge technology, strong convictions, and fair business principles to position itself to become one of the largest brands in the region. What are the criteria that you follow to maintain the standards of sustainability? Our products are green certified and fall under the architectural standards to be used in the construction with its low VOC content. With the constant evolution in various industries, AMI’s research and development team is in constant progress, developing new products and improving existing products that make it sustainable in the market. Being an ISO 9001 certified company enables us to sustain different market trends and work towards customer satisfaction. What are the construction projects that you have supplied your products to? AMI’S strongest brand, Dolphin, has been used in numerous projects in the UAE. For example, AMI’s Dolphin Weather Sealant is already used in projects, including The Hills project by Emaar, JAFZA Convention Center, Hidd Al Saadiyat villas in Abu Dhabi, ADNOC residential building expansion, and many more. Any expansion plans that you have for the company? Over the years, AMI has expanded both in the UAE and in the global market. It has diversified into GCC, Asia, and Africa. This implies meeting the needs and requirements of building materials and the automotive industry. We hope to add more products to the length and breadth of the company. We will continue to better our products and stay ahead of the market curve.
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// Awards preview
Date: Wednesday, October 17, 2018 Venue: The St Regis, Dubai Nomination deadline: August 31, 2018
Gates Open For the third year running, the Construction Innovation Awards 2018 is one of the leading events applauding the achievements of the region’s construction professionals. The awards strive to recognise individual excellence, corporate strengths, and project success. Companies are invited to nominate the people, projects, and initiatives of which they are most proud of, across 17 categories. Entries will be judged by an eminent jury of industry experts. Nominate yourselves now to stand a chance to win at the much-awaited construction industry awards event of 2018.
Company Awards Contractor of the year This award category recognises the outstanding main contractor active in the regional construction sector in the 12 months to the end of August 2018. Judges will be looking for an exemplary track record of delivering a number of high-quality projects to clients on time and on budget during this period and to the highest standards of safety. MEP Contractor of the year The award will go to the outstanding MEP contractor operating in the regional construction market in the 12 months to the end of August 2018. Judges will be looking for an exemplary track record of delivering a number of outstanding MEP projects to clients on time and on budget during this period and to the highest standards of quality and safety. Consultant of the year Contenders for the Consultant of the Year award will need to demonstrate a strong track record of delivering a number of exceptional projects in the 12 months to the end of August 2018. Judges will award extra merit for evidence of innovation and successful delivery of complex, ambitious projects. All types of construction consultancy companies (quantity surveyors, cost consultants, engineering consultants, project management consultants, etc) are qualified to nominate. 44
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Real estate developer of the year This category recognises the outstanding property developer active in the regional market in the 12-month period to the end of August 2018. Judges will be looking for an exemplary track record of delivering a range of outstanding projects on time during this period and to the highest standards. Preference will be given to entrants that provide evidence of innovation, complexity, productivity, and quality. FM Company of the year The award for the Facilities Management (FM) Company of the Year will go to the outstanding performer in region’s FM sector in the 12 months to the end of August 2018. Judges will be looking for strong evidence of growth and expansion during the period, delivery of quality service, innovation, and use of new technology. HSE Initiative of the year Contenders for the Health and Safety (HSE) Initiative of the Year award will need to provide details of an initiative successfully executed in the GCC in the 12 months to the end of August 2018. The category is open to all companies operating within the construction sector in the region. Special merit will be awarded to companies that can demonstrate the initiative has had a wider impact on the industry.
#CBNMEAWARDS18
Sustainability Initiative of the year Contenders for the Sustainability Initiative of the Year award will need to provide details of an initiative successfully executed in the region in the 12 months to the end of August 2018. The category is open to all companies operating within the construction sector in the GCC. Special merit will be awarded to companies that can demonstrate the initiative has had a wider impact on the industry. CSR Initiative of the year Contenders for the Corporate Social Responsibility (CSR) Initiative of the Year award will need to provide details of an initiative successfully executed in the 12 months to the end of August 2018. The category is open to all companies operating within the construction sector in the GCC. Special merit will be awarded to companies that can demonstrate the initiative has had a wider impact on the industry.
Project Awards Commercial project of the year The Commercial Project of the Year Award will be awarded to the office project that makes an important contribution to its surroundings, demonstrates construction best practice, and can show how construction techniques and technology have contributed to its success within 12 months till August 2018. Retail project of the year The Retail Project of the Year Award will be awarded to the malls and shopping complexes that demonstrate construction best practice, and can show how construction techniques and technology have contributed to its success within 12 months till August 2018. Hospitality project of the year The Hospitality Project of the Year Award will be awarded to any hospitality/tourism-related project that makes an important contribution to its surroundings, demonstrates construction best practice, and can show how construction techniques and technology have contributed to its success within 12 months till August 2018.
www.cbnme.com
Residential project of the year The Residential Project of the Year Award will be awarded to the project that makes an important contribution to its surroundings, demonstrates construction best practice, and can show how construction techniques and technology have contributed to its success within 12 months till August 2018. Sustainable project of the year The Sustainable Project of the Year Award will be awarded to the project that makes an important contribution to its surroundings, demonstrates construction best practice, and can show how construction techniques and technology have contributed to its success within 12 months till August 2018.
Individual Awards Project manager of the year The Project Manager of the Year award will go to the individual who can demonstrate supreme project management skills on major and complex projects over the past 12 months till August 2018. Engineer of the year The award for Engineer of the Year will go to the engineer who can demonstrate the greatest impact on his or her organisation during the previous 12 months. The category is open to any engineer working at any company operating within the GCC construction sector during the period. Construction Executive of the year The award for Construction Executive of the Year will go to the executive who can demonstrate delivering outstanding results at his or her organisation during the previous 12 months. The category is open to CEOs and other senior executives working at any company operating within the GCC construction sector during the period. Lifetime Achievement Award This award will go to an individual that has made an outstanding contribution to the construction and real estate sector in the region during his/her career. This award will be chosen by a panel of judges.
construction business news me // August 2018 //
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#CBNMEAWARDS18
// Awards preview
Wall of fame • Young Entrepreneur of the Year – Kareem Farah, Engineering Contracting Company (ECC) • Young Ideator of the Year – Mahmood Shaikhani, Shaikhani Group • Project Management Firm of the Year – Hill International • Commercial Project of the Year – Etihad Museum by ASGC • Hospitality Project of the Year – Damac Towers by Paramount Hotels and Resorts • Infrastructure Project of the Year – Burullus Power Plant in Egypt by Orascom Construction • Sustainable Project of the Year – The Sustainable City by • Residential Project of the Year – Jumeirah Living Marina Gate by Select Group • Sustainability Initiative of the Year – Dow Cool Reflective Roof Coatings by Dow IMEA • HSE Initiative of the Year – Life Preserving Principles by Aecom
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Drake & Scull International • Construction Executive of the Year – Mohamed Jafer Musthafa from Daemaar Group • Engineer of the Year – Clement Gunasekar from Al Faraa General Contracting • Project Manager of the Year – John Rinard from Parsons • Supplier of the Year – Kirby Building Systems • FM Company of the Year – Deyaar FM • MEP Contractor of the Year – ASU
Diamond Developers
@ cb n m e
• CSR Initiative of the Year – Because We Care campaign by
• Real estate developer of the Year – Azizi Developments • Consultant of the Year – Aecom • Contractor of the Year – Orascom Construction • Lifetime Achievement Award – PNC Menon, founder and chairman, Sobha Group
f ac e b o o k . c o m / cb n m e
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C o n s t r u c t i o n B u s i n e ss N e ws
ME
// Case Study
48
// construction business news me // August 2018
Ri s e o n c e again Roma Arora visits Address Downtown, which opened recently after the 2015 fire that set the hotel ablaze on New Year’s Eve
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ne of the most iconic properties in Dubai, Address Downtown, has reopened after nearly three years of exhaustive renovation works caused by a fire on New Year's Eve in 2015. An electrical short circuit on a spotlight was the cause of a fire that engulfed The Address Downtown Dubai hotel just before the midnight. A spark from cables connected to the light, which sat on a ledge between the 14th and 15th floors of the 63-storey tower, triggered the blaze. Towering high at 302m across 63 levels, the hotel, which is a part of the Emaar Hospitality Group’s Address Hotels & Resorts brand, looks stunning from all the quarters after it opened doors to the public once again. The interiors strike a right chord between the old and the new, with modern marble interiors, without losing the Arabesque touches and the key USPs that Address Downtown was known for. Caroline-Jane Houston, general manager, Address Downtown, shares with Design Middle East: “We worked with world-leading designers and consultants to ensure that the restored version of Address Downtown has a timeless appeal that upholds the brand’s distinctive positioning of ‘where life happens’.”
www.cbnme.com
The hotel lobby is full of fine architectural details, brilliant artworks, butterfly installations, and handcrafted décor accessories. The lobby evokes a real mix between stunning white pillars, floor-to-ceiling glass windows, and comfortable furnishings. “We decided to partner with exceptional artists from around the world to add elegant and inspirational elements to the hotel’s design.
The ethos of the hotel’s interiors is lifestyle luxury, blending opulent materials like patterned Italian marble fixtures with lifestyle installations such as the three synthetic-glass butterflies by Stephen Stefanou that hang above the stairway leading to The Restaurant,” explains Houston. The subtle and muted tones can be seen across the property in various humble shades. Rooms are spacious
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// Case Study
The hotel lobby is full of fine architectural details, brilliant artworks, butterfly installations, and hand-crafted décor accessories.
and connect with the overall theme of the property; one of the stunning rooms available is the Signature Spa Suite Fountain View, all opening to spectacular views of the skyline with a huge balcony. Houston says: “To maintain the popularity of the property, we have taken great consideration in the guest journey, from the mood lighting in the rooms to the movement of the environments, making the areas more easily accessible and more lifestyle in approach.” The property houses some leading fashion brands throughout the premises in a display cabinet, which is another highlight to check out. The guests can purchase the showcased items while staying at the property. The Restaurant at Address Downtown is designed in the style of an avant-garde French apartment with inspired spaces from the living room to the kitchen concept. Another beautifully curated restaurant is the STK, an ingenious interpretation of an American steakhouse in the form of a chic, contemporary lounge. There’s an uber cool place called Neos, an ultra-luxury lounge on Level 63, assuring guests a never-before ambience. One cannot keep their eyes off the very-sophisticated looking The Spa 50
with breathtaking views. It has nine treatment rooms, a hammam, steam rooms, and relaxation areas as well. Houston, who has been part of the initial opening team in 2009, exactly knew how to maintain the essence of the property. She shares: “We have modernised whilst maintaining familiarly, and this has been done by pulling in those inimitable initiatives that has made Address Downtown so special. The signature scent is one of the touchpoints that remains as before,
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as well as keeping popular areas like the Cigar Lounge, Zeta, and Neos. Having been part of the initial opening team in 2009, I have been able to help blend the areas of the property that worked well before, whilst looking at some that required improvement. We have also added some British influences as well, including our beautiful bespoke collection of Wedgwood Bone China and the team uniforms, which we call styles, that are based on British icons.”
It fits, but will it do the job?
Filters. A vitally important part of any engine. Every working day, liters of oil are pushed through, filtering out dirt and impurities and keeping the engine safe from damage. Volvo filters are designed to perform in demanding conditions. 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
// Machinery
D r ivi n g Excellence
One of the leading customers in Dubai praises Bobcat telehandler's reliability and performance
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ne of the leading Bobcat telehandler customer in Dubai has praised the high performance, reliability, and durability of the Bobcat telehandler range. The comments come from reputed contractor, Fujairah National Construction Co (FNC), and are supported by their experience with a top-of-the-range Bobcat T40180 18m telehandler. Purchased in December 2015 from Dubai-based Kanoo Machinery, the Bobcat dealer for the UAE, the T40180 has provided trouble-free performance since it arrived, already completing well over 10,000 hours on site. The T40180 has been working two shifts a day throughout this period and has been used on three major contracts including two new 18 storey buildings. According to Kanoo, the record of the T40180 is typical of what can be expected from the Bobcat telehandler range in the tough working conditions in the Middle East. Over the last two and half years, the T40180 has required only normal servicing under the preventive maintenance programme recommended by Bobcat. Its performance is a perfect illustration of the reliability and durability that customers can expect not only from Bobcat telehandlers, but also Bobcat skid-steer and compact loaders, compact excavators, backhoe loaders, and attachments in the exacting conditions found in the Middle East. 52
Farhan Mahmood Rizvi, engineered equipment and plant manager at FNC, said: “We have been delighted with the performance of the Bobcat T40180 telehandler. We make sure we look after all the equipment in our fleet, following or even exceeding manufacturers’ servicing and maintenance guidelines. We closely monitor all the components and performance of our machinery, ensuring all aspects such as greasing, oils and fluids, and genuine parts are used in full compliance with these guidelines.” From its roots in the construction of factories, commercial buildings,
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and warehouses, including many in the Jebel Ali Free Zone (JAFZA), FNC developed to become the first turnkey construction company in the UAE offering combined expertise in design, construction, and management for building high-rise towers exceeding 40 floors. Alongside being a turnkey contractor, FNC is also the largest steel framework contractor not only in the UAE but also in the Middle East. Rizvi added: “We have used the Bobcat T40180 telehandler for a wide variety of applications, from lifting rebar from trucks for foundation work to moving heavy materials
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// Machinery
such as the components for the steel work in buildings. The dependable safe lifting offered by the T40180 when it is used both with the wheels alone or with its stabilisers deployed has been an important aspect for us. The easy-to-use stabilisers also ensure that the full capabilities of the telehandler can be utilised in the most confined working areas and close to walls.� The T40180 18m telehandler at FNC is the largest model in the Bobcat range of rigid frame telehandlers. The T40180 model delivers market-leading load chart performance in its class, with an unmatched maximum lifting height of 16.2m when operated on tyres alone. The high stability of the telehandler ensures minimal loss of lift height and capacity, and the T40180 model is based on an easy-to-use design that provides class-leading efficiency and productivity backed by state-of-the-art safety systems. The T40180 telehandler has a maximum lift capacity of four tonnes and a maximum lift height of 17.52m. The lift capacity at maximum lift height is 2.5 tonnes, while at maximum reach (13.7m), the lift capacity is 560kg. Unloaded, the T40180 weighs 10.79 tonnes and provides a crowding force of 12,300 daN. The unique, patented Bobcat side shift system is a standard feature on the T40180 model, ensuring there is no need to reposition the machine if it is not aligned with an opening, providing maximum flexibility with a +/- 700mm side shift. High comfort, high visibility cab Featuring optimised ROPS/FOPS protection, the cab on the T40180 telehandler offers increased safety and visibility through a curved front window providing a better view of loads and attachments at height; a larger back window increasing sight to the rear; and a cab door with windows above and below the handlebar for optimum visibility when manoeuvring the machine. 54
From their comfortable seat, the operator is provided with an ergonomic array of machine controls all within easy reach and including a forward/reverse (FNR) control button on the joystick; a digital display; an adjustable steering wheel; and an integrated airflow solution. FNC has used the T40180 mainly with pallet fork and bucket attachments but the company also equips the telehandler with a man platform for periphery works on buildings. These are part of a wide range of attachments for Bobcat telehandlers, including different types of digging buckets, concrete buckets, jibs, and winches. The T40180 telehandler can also be supplied with a wide selection of engine, hydraulic, boom, rear, cab, frame, and tyre options. Kanoo Machinery has grown to
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become one of the leading materials handling, construction, agriculture, cleaning, and industrial equipment distributors in the Gulf. Products from Bobcat are marketed through dedicated sales and aftermarket product specialists available in all five branches (Dubai, Abu Dhabi, Al Ain, Sharjah, and Ras Al Khaimah) in the UAE. The company supports its customers through its expert team of sales and factory trained service engineers, technicians, and support staff. An extensive inventory of fast moving machines and consumables offers a fast response time to customer requests and is maintained in stock at all branches of Kanoo Machinery. This is complemented by the large inventory held in the Kanoo Distribution Centre in Al Quoz and JAFZA.
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// Equipment
A broad vi s i o n SDLG celebrates 1,000th wheel loader sale in Indonesia
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DLG celebrated the delivery of its 1,000th wheel loader in Indonesia at an event in Jakarta on July 18, 2018. The sale of the 1,000th unit — an LG936L — to customer, PT Bumi Mentari Karya, signals growing customer confidence in SDLG construction equipment. SDLG has seen three consecutive years of growth in wheel loader sales in Indonesia and is expecting another strong year ahead. Between 2014 and 2017, SDLG wheel loader sales rose 40% in Indonesia — the company was also the market leader for wheel loader sales during this period. On the back of this growth, the company recently sold its 1000th wheel loader in the country, an achievement that was celebrated at an event attended by the customer PT Bumi Mentari Karya, local dealers PT Indotruck 56
Utama and PT Intraco Penta Prima Servis, and SDLG senior executives. “We’re happy to be a part of SDLG’s milestone. The company’s wheel loaders are cost-effective yet reliable and have performed well for us, which is why we make return purchases,” said Wiby Swanto, senior manager of PT Bumi Mentari Karya. “For SDLG to sell 1,000 wheel loaders in Indonesia over a short period of time just goes to show the confidence that we and, I’m sure, other customers have in these machines.” At the celebrations, Victor Zhao, vice general manager of SDLG Import and Export, delivered the LG936L to Swanto. PT Bumi Mentari Karya will be using the unit at a palm oil mill in Pekanbaru, Riau. During the celebrations, SDLG also launched the RD730 road roller in Indonesia. The new LG936L will join PT Bumi
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Mentari Karya’s fleet of 19 SDLG wheel loaders, which includes 13 LG936L units and six LG938L units. As SDLG’s top-selling wheel loader for several years, the 3t-rated LG936L is widely-used on farms, timber plants, town construction, and other small projects. It has a bucket capacity of 1.8cbm, a maximum dumping height of 2,950mm, and a maximum dumping distance of 1,050mm. “SDLG wheel loaders’ success in Indonesia is only possible thanks to customers’ confidence and support of our machines and brand,” said Anthony Neo, SDLG director of sales support. “We really appreciate the opportunity today to thank and celebrate with our customers and local dealers. We will continue to deliver machines that are ever more reliable and productive while maintaining their value proposition.”
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// Market Watch
Cautious measures New AED50bn government package to reduce costs for real estate developers, promote publicprivate partnerships (PPP), and provide dual licenses for companies located in free zones
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lthough market conditions in Abu Dhabi remain relatively unchanged this quarter, Q2 witnessed a major announcement by Sheikh Mohammed Bin Zayed introducing an economic stimulus package for Abu Dhabi to drive economic growth, outlines JLL’s latest report. The threeyear AED50bn package should boost sentiment among key stakeholders and have a direct impact on the capital’s real estate sector. The stimulus package introduced in early June 2018 will drive initiatives that directly affect the real estate sector by reducing costs for developers, promoting partnerships between public 58
and private sectors, and also providing dual licenses for companies located in free zones to bid for, and undertake government tenders outside the free zone. Peter Stebbings, national director and head of Abu Dhabi, JLL, says: “The new government economic stimulus package has positive implications for the Capital with new initiatives directly impacting the real estate market and as with previous government stimuli should lead to an upswing in investment. “There has been an increased focus on promoting and implementing public-private partnerships across the region and within the UAE in particular. With the stimulus package being
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introduced in Abu Dhabi, real estate developers will be able to reduce costs, paving the way for positive sentiment across the market.” Residential Residential rents and sales prices continued to decline due to weak demand, cautious investor sentiment, and increased supply. Rents have been negatively impacted by weak demand following job losses and cuts in housing allowances leading to more vacancies. Concerns over the pace of the global economic recovery have also contributed to weaker investor sentiment, placing downward pressure on prices in the secondary market.
The three AED50bn year p a ckage should bo ost sentim e among ke y stakeho nt lders and have a direct im pact on the Ca pital’s rea l estate sec tor
Peter Stebbings, national director and head of Abu Dhabi, JLL
However, with the UAE’s decision to allow 10-year visas for expats and 100% foreign ownership in companies outside of free zones will boost sentiment in the residential market, providing expats with more security over their rights to remain in the UAE. Approximately 650 units were delivered in Q2 2018, bringing the total residential stock to around 255,000 units. Deliveries included C87 residential tower in Rawdhat, M Tower on Reem Island, and Marina Sunset Bay Apartments in proximity to Marina Mall. A further 7,000 residential units are currently scheduled to enter the market by the end of 2018, mainly within Reem Island, Yas Island, and Saadiyat Island. www.cbnme.com
for Grade A and AED900 per sqm for Grade B. The decline in the rents reflects the extent to which the market has shifted in favour of tenants over the past year. With vacancies on the rise due to consolidation, there is greater competition and more choice of space available to tenants. This has resulted in tenants having the upper hand when it comes to the terms and conditions including rental rates, rent-free periods, fit-out contributions, particularly within Grade B office buildings. Retail The introduction of VAT earlier this year has prompted retailers across the UAE to shift their focus to ways in which they can provide greater value to shoppers who have become more price conscious. Although VAT has had a short-term negative impact on consumer spending, other factors are likely to have a larger long-term impact on consumer spending. The food and beverage (F&B) sector maintains a strong position in the market with high demand still reported for shisha-licensed areas, for which interested parties are willing to pay substantial premiums.
However, a significant proportion of this supply could get delayed at the final stages of approval and handover. Office Office rents have slightly fallen in Q2 as consolidations continue to take place and other companies choose to downsize. Employment levels in Abu Dhabi continue to be affected, specifically in government agencies and financial service entities, placing downward pressure on rental rates. Headline rentals for both Grade A and Grade B office spaces continue to face pressure. Rates for shell & core offices exclusive of service charges are averaging at AED1,700 per sqm
Hospitality The hospitality market registered a 2% increase in occupancy levels and a 7% drop in ADRs compared to the same period last year. Consequently, RevPar declined by 4% in YT May 2018 compared to the same period last year. One reason for the decline in performance over the first half of the year was that the biennial IDEX Defence Exhibition and Conference did not take place this year, which is a huge draw for visitors. The significant level of upcoming supply is expected to add further downward pressure on ADRs and RevPar levels throughout the rest of the year.
construction business news me // August 2018 //
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// Editor's pick
Setting standards Makkah poised to welcome investment opportunities to boost economic growth as PIF announces latest mega project in Makkah, according to a JLL report
T
he latest mega project in Makkah ‘Rou’a Al Haram Al Makki', announced late last year by the Public Investment Fund (PIF), will play a significant role in boosting Makkah’s economic growth and, in turn, enhancing the overall sentiment in the Makkah real estate market, according to JLL’s H1 2018 Makkah Marketplace report. The government is now implementing different projects within the Saudi Vision 2030. The new project in Makkah is expected to contribute SAR8bn to the national economy. Construction is expected to commence later this year, paving the way to increase the city’s ability to host 30mn pilgrims annually in line with the government policy of lifting the quota on Hajj pilgrims, introduced in H1 2017. With the influx of pilgrims, there will be an expected increase in investment opportunities across all sectors of the real estate market. “With the latest megaproject being announced late last year, the Makkah market is likely to witness increased investment across all real estate sectors over the rest of 2018 and beyond,” said Craig Plumb, head of research, MENA at JLL. “The government is rapidly introducing policies and promoting additional investment across the entire Kingdom, to diversify the economy, and increase the rate of economic growth. Makkah remains central to attracting Hajj and Umrah visitors and will benefit from the megaproject that will also encourage other key stakeholders to invest across all real estate sectors. This new investment will be a particular boost in sentiment towards the hospitality and retail sectors.” The first Makkah Economic Forum, held in May, unveiled eight investment opportunities in the Hajj and Umrah 60
Whilst residential rents and sales prices softened further in H1 2018, Makkah should experience a continued increase in prices as new projects enter the market. ” sector in the office market, with a value of approximately SAR600mn across the two holy cities of Madinah and Makkah. The Ministry of Hajj and Umrah is also encouraging SMEs to invest in companies offering Umrah services to further improve the corporate sector’s performance. Whilst residential rents and sales prices softened further in H1 2018, further down the line, Makkah should experience a continued increase in prices as new projects enter the market. The new megaproject could potentially add a further 9,000 residential units to Makkah’s supply pipeline and this is just one example which is currently in the early phases of development. The food and beverage (F&B) sector is becoming an increasingly important in the retail market in Makkah, as a
// construction business news me // August 2018
number of recently completed plazas offering quality international restaurants and food outlets have been opened across the city. Citywide vacancies declined marginally by around 2% over the past 12 months to reach 4%. The ‘Rou’a Al Haram Al Makki’ project will further enhance the sector to support the project’s 310,000 visitor capacity. The hotel sector is due to witness a surge in supply as 70,000 hotel rooms are planned as part of the ‘Rou’a Al Haram Al Makki development. With other projects already under construction or announced, the supply of quality hotel rooms could increase considerably by 2030. There were a number of completions in the hotel sector in H1 2018 and further openings are expected in the second half of the year.
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// Save the date
Save the date Mark your calendar
September
4-6
September
23-25
62
Middle East Stone Dubai, UAE Middle East Stone is the MENA region’s premier B2B event for the natural stone, marble, and ceramics industry. Apart from showcasing the industry’s latest breakthrough products, it also attracts installation and maintenance solution providers from more than 30 countries globally. Every section of Middle East Stone caters to the region’s construction and fit-out industry’s diverse range of product and service requirements, from the latest design and innovation in products and technologies to cutting-edge applications and industry best practices. Sectors within the exhibition include Stone World, Tile World, Gems and Minerals, Stone Design, Quarrying and Machinery, as well as Chemicals, Machinery, and Tools.
Light Middle East Dubai, UAE Armed with the most illuminating technologies in the field, Light Middle East promises to put on a spectacular show come September. Light Middle East has established itself as the region's number one networking and sourcing platform for the entire scope of decorative, architectural, outdoor, and indoor lighting solutions, attracting a wide range of visitor profiles from around the globe. Visitors can expect a spectrum of the latest products, the most viable solutions and unmatched industry expertise. A show of great repute, the 12th edition of Light Middle East attracted 5,755 visitors from 84 countries and 345 exhibitors from 30 countries showcasing their finest products and services to a highly engaged audience.
// construction business news me // August 2018
Windows, Doors & Facades Show
September
23-25
September
23-25
Dubai, UAE Put together by the organisers of The Big 5 Dubai, Windows, Doors and Facades Show is a one-of-a-kind event. It caters exclusively to the real estate, construction, and interior design industries. The show brings a whole host of global consultants, manufacturers, and distributors of windows, doors, and facade products - including Schuco, Orgada, Elumatec, Gulf Extrusions, Cladtech, and Reynaers, giving the regional businesses a unique platform for trading, exchanging ideas, and networking. The successful 2017 event attracted 5,000 visitors, 300 exhibitors from 64 countries and over 8,000 industry professionals covering regional and global markets.
FM Expo Dubai, UAE FM EXPO is the Middle East’s premier event for the facilities management industry. Professionals from across the diverse facilities management disciplines will gather for three days of sourcing new products and services, enhancing their professional knowledge and networking with their peers. This highly educational and informative free-of-charge event offers infinite opportunities to connect with industry peers, experts, vendors, and understand the competitive landscape. The nature of this event lends itself to facilitating meetings between businesses to help them get in touch with visitors and showcase their full range of services and solutions.
Business Data SIM plans. The power of high-speed data on the move. • Special promotional prices • Range of the latest tablets • Live tracking of data consumption
du.ae/businessdatasim
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