Big Project ME April 2021 by CPI Trade Media

Licensed by Dubai Development Authority

179 April 2021

MEConstructionNews.com

THE BUSINESS OF CONSTRUCTION

Refurbish to Recover

ANTHONY TAYLOR, HEAD OF REAL ESTATE AT EMIRATES NBD ASSET MANAGEMENT, TELLS BIG PROJECT ME THAT REFURBISHING EXISTING ASSETS WILL HELP IMPROVE OCCUPANCY LEVELS IN A CHALLENGING MARKET

Fragmented tools

Complete Construction Cloud

CONTENTS

April 2021

ANALYSIS

FEATURES

INSIGHT

The briefing

Comments

The big picture

Gavin Davids speaks to Anthony Taylor, head of Real Estate at Emirates NBD Asset Management, about how refurbishment of assets can improve tenancy retention levels

Tenders

Progress report

Experts discuss implementing good commissioning processes and the importance of employee engagement

In profile Anthony Taylor

The industry’s brightest minds share their thoughts on a variety of topics and issues impacting the construction industry

Providing a wrap-up of the biggest local, regional and international construction news stories

Big Project ME, in association with ProTenders, provides the biggest tenders for the month of April 2021

Market report

Big Project ME profiles the El Hammam Agricultural Wastewater Plant in Egypt and learns how it will impact the country’s future

Analysis

ProTenders’ Dr Deva Palanisamy provides an overview of Qatar’s construction sector

Project profile A Future from the Nile

Nakheel’s Palm Tower reaches the 95% completion mark on the Palm Jumeirah

Dr Fadi Bayoud asks if the industry truly understands what collaboration means and how it can be applied

MEConstructionNews.com | April 2021

WELCOME

Introduction

Can we truly collaborate?

s I was putting together this month’s issue, I was lucky enough to have some very interesting chats with some of the sharpest minds working in our industry today, and all of them left me with plenty of food for thought as we move into a new quarter for 2021. When speaking with Dr Fadi Bayoud, I had to agree with his straightforward observation that while there have been many attempts to increase and improve collaboration in the industry, there has not actually been a concerted attempt to understand what that collaboration means, and how to find a way to collaborate that will benefit all stakeholders involved on a project. As we move forwards into an era that will demand more collaboration and communication between partners, this is an urgent issue that must be addressed, and as Dr Bayoud says, it can only come from within the industry and there must be a realisation that there is a common goal that is being worked towards.

April 2021 | MEConstructionNews.com

Working towards a common goal is also something that Bashar Abou Mayaleh has been a strong advocate for during his 22 years in the construction industry. As we all know, the supply chain has taken a massive hit due to COVID-19, and as he rightfully says, the industry needs to come together to help protect the most vulnerable. While the market will always dictate terms, there needs to be more done to ensure that those terms are fair and equitable for all stakeholders. It does not benefit anyone if we see those further down the supply chain crushed due to issues around payments and clauses that make it almost impossible for contractors to do their job. We have all seen or know how the industry has suffered in the last year, so if we are to avoid more companies falling by the wayside, this is an issue that needs to be addressed with some urgency, whether by the government or by the industry itself. Otherwise we may find ourselves faced with a smaller, less diverse, and consequently, less capable construction industry.

Gavin Davids

HEAD OF EDITORIAL & CONTENT gavin.davids@cpitrademedia.com @MECN_Gavin MEConstructionNews me-construction-news

Licensed by Dubai Development Authority

179 April 2021

MEConstructionNews.com

THE BUSINESS OF CONSTRUCTION

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Advertising

Refurbish to Recover

ANTHONY TAYLOR, HEAD OF REAL ESTATE AT EMIRATES NBD ASSET MANAGEMENT, TELLS BIG PROJECT ME THAT REFURBISHING EXISTING ASSETS WILL HELP IMPROVE OCCUPANCY LEVELS IN A CHALLENGING MARKET

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Design ON THE COVER

Big Project ME sits down with Anthony Taylor, of Emirates NBD Asset Management, to discuss how refurbishment of assets could help retain tenants and increase occupancy levels MEConstructionNews.com @meconstructionn MEConstructionNews me-construction-news

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Web Development The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication. The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority to CPI Trade Publishing FZ LLC. Printed by Al Salam Printing Press LLC. CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2021. All rights reserved.

April 2021 | MEConstructionNews.com

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CONSULTANT

SHEIKH MOHAMMED DECREES ESTABLISHMENT OF INHERITED PROPERTY DISPUTE TRIBUNAL

Egis completes acquisition of Kuwait’s Projacs International

CONSTRUCTION

Abu Dhabi Airports to pull MTB contractors’ bonds over project

EXPERTS Digital twins show the way towards a net-zero emissions construction sector

CONSTRUCTION

DEWA commissions $153m 400/132kV substation at MBR Solar Park

CONSTRUCTION

Grundfos bounces back after COVID-19 revenue slump

CONSULTANT

EMPC appoints Arab Architects to Reef Mall refurbishment April 2021 | MEConstructionNews.com

READERS’ COMMENTS

ANALYSIS The tech to enhance collaboration and transparency

The question of inheritance all too frequently unravels the bonds of families and can leave many lives in tatters. The importance of this intervention by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and ruler of Dubai therefore cannot be overstated. The establishment of a special tribunal to resolve disputes between heirs in relation to the sale of inherited residential property provides clarity to both home owners and the real estate market in general in the UAE. The move to protect the rights and interests of all concerned parties, especially the elderly, minors, femes sole, divorcees, widows and people of determination closes a loop hole and provides protection to these vulnerable groups. The decision to move the tribunals away from Dubai Court is an interesting initiative and in many ways it is a return to the spirit of personal dispute resolutions that were conducted many years ago in Dubai. My main hope is that this will provide speed and certainty to many and allow them to continue with their lives as soon as possible. Name withheld by request

Date

From 21 Jun

Venue

Online

VIRTUAL

Vision 2030, Saudi Arabia to lead the region’s construction sector into a new dawn 21 – 23 June 2021, Online

About the

Construction Intel Summit KSA

Insightful

Saudi Arabia’s construction sector was booming in 2020, with a pipeline of projects worth a staggering trillion dollars. However, when the pandemic hit, it caused massive disruption with work stoppages, cash flow squeezes, project delays, and supply chain disruptions.

This event will bring together the industry’s leading minds to engage in discussions and share presentations, all of which you will be able to follow from the comfort and safety of wherever you are.

Discussions

In 2021, the Saudi economy is expected to recover as global conditions improve and the COVID-19 vaccine becomes increasingly available. While this recovery is undoubtedly good news, it also poses the question about what comes next for the construction sector in the Kingdom. The government aims to cement the role of the private sector by prompting private investment in manufacturing, tourism, and renewable energy, which opens the door to the implementation of parallel reforms that will encourage private sector investment.

Networking

Complimentary

Get in touch

Opportunity

This event presents you with an opportunity to connect with industry decision makers and influencers. There are several ways to sponsor, from interactive live polls to session background branding, and from lead generation campaigns to presentations.

Content

Sponsorship

Gavin Davids | +971 4 375 5480 gavin.davids@cpitrademedia.com

Jude Slann | +971 4 375 5714 jude.slann@cpitrademedia.com

Event Partners ASSOCIATED PARTNER

SILVER SPONSOR

BRONZE SPONSOR

PRESENTED BY

THE BRIEFING

MEP systems

Invisible touch – Embracing all 6 dimensions MIDDLE EAST

Martin W. J. Smith – MEP Building Services Technical Expert at Diales makes a case for the benefits to clients and contractors alike of implementing a good and timely commissioning process of building services MEP systems April 2021 | MEConstructionNews.com

uildings are all conceived with a particular purpose in mind. Project teams are set the goal of delivering on the “Need” of the client and the building users. However, many buildings fail to satisfy, and this can be for many reasons. One such reason is the lack of attention paid to the proper setting to work in the first instance. One theme that often leads to client dissatisfaction is poor operating function of MEP systems due to poor commissioning and those activities that are intended to lead to successful setting to work. Such outcomes do not tend to be caused solely during the

short time that the commissioning and associated activities are afforded but are affected by a much wider neglect of the necessity and importance of this area of work. Commissioning is the unseen, sometimes unnoticed process that is an absolute necessity to ensure that each building service and consequently the whole building performs the function desired. Hence MEP commissioning is the “invisible touch”. What might be done to improve this? Whilst it is appropriate that each project team member focusses on its own aspect of delivery, it is also important to retain a grasp of the overall project objective. It is important to

All elements matter Project teams must recognise the importance of all elements of the design, construction, implementation and setting to work of the building.

Learn for the future Martin W.J. Smith states that a ‘good commissioning’ approach not only has project specific benefits, but also allows teams to learn and prepare for future project challenges.

promote whole team and whole project thinking, cooperation and co-ordination to ensure that the physical form of the building fulfils the functional need, by including appropriate time, resources and capital to ensure the product is “Commissioned” (Checked, Balanced, Tested, Set to work) and Handed over to a client in a state that suits his Need. To fulfil the sophisticated needs of our built environment requires a balance of 6 dimensions. The three spatial dimensions; a building must be the right size; the fourth is Time: a building must fulfil the client’s need in a timely manner; The fifth is Cost: a buildings’ objective is almost always measured against a financial investment value; and finally, the sixth dimension is the senses; animate interaction with the manipulated controlled environment is perceived by our senses. To satisfy the senses demands the forced dynamic adjustment of the environment. Such adjustment is achieved primarily by the implementation of building services engineering systems, to satisfy the perception of sight, temperature, humidity, sound and smell. However, MEP building services installation and setting to work by the inherent process of constructing buildings occurs last and is often paid too little attention, hence, the opportunity to satisfy the “need” is lost. Whole project teams must recognise the importance of all elements of the design, construction, implementation and setting to work of the building and include building operation after construction in its whole project life approach from the outset of the project and into building operation. The Dynamic MEP systems that allow satisfaction of the “Need” and “Function” are not yet sufficiently intelligent to “set themselves up” and perform immediately without help from the project team. The project process therefore must allow for the comprehensive inclusion of the whole commissioning process to ensure proper building function. Often, the focus of attention lies with other elements of the project

design and construction process. Even if commissioning is recognised for its true importance during the design stages of a project, it is often the physical process that is squeezed. The capital cost imperative to both clients and contractors dictates that it is inherent in the building process that agreed construction programmes should be kept on track. Consequently, when a project falls behind programme, the construction team almost invariably attempts to maintain the final delivery date by making adjustments to construction activities where it is seen fit or it is “easy” to do so. MEP building services installations are installed and are ready for commissioning towards the end of the construction programme. Commissioning cannot start until all systems are complete and it always occurs last in a construction programme. So, if a construction programme is to be squeezed, which activities are likely to suffer? Those that occur last. It might even be suggested that since such activities are carried out by third or fourth tier sub-contractors in the chain of engaged parties, the higher tiers see little direct consequence and have

no direct contact with the workface at this point and such decisions to reduce the time allowed is an easy decision to take. Commissioning and the associated activities are the easiest target to squeeze. When the time allocated for commissioning and demonstration is cut short, the product is compromised. All such activities must be given due time if a building is to perform and fulfil the clients “Need”. It should be recognised, unlike other industries, building project teams are not afforded the opportunity to build a number of prototypes prior to production to test the finished product is deemed satisfactory for the client / marketplace. No two buildings are alike, and it is an important part of project delivery to remember and take cognizance that there is no prototype. Part of the commissioning process must understand and respond to the unique product being delivered. This of itself takes, time, effort and capital. A “good commissioning” approach to project delivery provides not only project specific benefits but allows teams to implement lessons learned on previous projects to future ones.

MEConstructionNews.com | April 2021

THE BRIEFING

Harmonising Processes MIDDLE EAST

Mariam Azmy outlines her plans to drive employee engagement and gender diversity as she moves forward in her new role as chief human resources officer for the ASGC group

April 2021 | MEConstructionNews.com

n February 2021, ASGC appointed Mariam Azmy as the chief human resources officer for the group as part of the company’s drive to improve employee wellbeing, development and engagement programmes, while also enhancing its People Agenda. Having joined the company as HR officer in 2004, Azmy has been instrumental in supporting employee growth and development through the modernisation of ASGC’s corporate culture. Over the course of her tenure, she has been responsible for planning and managing the parent company’s human resource programmes, while also providing a high level of expertise for its subsidiaries. Furthermore, she

has also helped strengthen ASGC’s talent acquisition programmes, while also helping to develop the company’s gender diversity initiatives, having doubled the percentage of women in the company over the last three years. Having been tasked with carrying forward this work and developing strategies that will enable the company to continue to growth while involving and engaging employees, she speaks exclusively to Big Project ME about the task ahead of her. What is your mandate as chief human resources officer? Within this role, I will be looking at fostering a cohesive people agenda across ASGC Group’s portfolio of companies and utilising that agenda to

People agenda Mariam Azmy says that she will be looking at fostering a cohesive people agenda across ASGC Group’s portfolio of companies, utilising that agenda to drive business results.

2014

Year Azmy joined ASGC

help drive business results. Historically, as each company within the group was set up under independent management, they had operated in a more isolated manner, building their own processes and structures. However, in this digital era characterised by rapid change across all sectors, that approach makes less and less sense and inhibits the us from gaining competitive advantage as well as the benefit of economies of scale and scope. We will be looking at harmonising the processes of the HR functions across all of our group companies and supporting digital transformation within the function. Subsequently, we will be using that data to make smart decisions about how the group can be best supported in terms of talent, skills and capability to meet the needs of the changing industry landscape. What will be the immediate areas of focus for you as you settle into this role? The immediate area of focus is to ensure that we have quality data across the board, as well as harmonising structures and processes such as talent acquisition, total reward, internal communication, employee engagement, performance management etc. My team and I are also placing a strong focus on development and have rolled out our L&D plan to the entire group this year. Why do you feel that there is a need to modernise the recruitment and talent acquisition process? Is this an industry-wide issue? I believe that all companies, not just in the construction industry, need to continually look at modernising their recruitment and talent acquisition processes. We are living in a data-driven world now and it would be remiss of us to not take that into account in our decisions around people. We want to make sure that we are hiring the right people, from the most cost-effective sources, who are passionate about the work they do and ultimately create success for both themselves and the company. By analysing metrics such as the quality of new hires, sourcing data and costs - and combining that with psychometric results, data from our performance management system and employee engagement scores

What we are focusing on is awareness across the group of drawing more women into the recruitment funnel to begin with” - we will be able to streamline our recruitment processes and ensure that we spend less time and resources whilst also ensuring the right talent is brought into the organisation. How can the industry improve and strengthen employee welfare, development and engagement? I believe that it is very important to listen to people. At ASGC, we are a familyowned business and as such, find that the values of our family trickle down into the organisation. As a family, we’re very open with one another and discuss challenges freely. Hence, we have an ‘open-door’ policy within the company and people are free to discuss any issues they have with their management at any time. We also run yearly engagement surveys and take the feedback very seriously. For example, following

on from the survey conducted last November, we have already altered our approach to performance and feedback and have improved our internal communication strategy based on specific employee feedback. What are some of your ambitions and targets when it comes to improving the gender balance within ASGC’s workforce? I’m not in favour of the ‘Noah’s Arc’ approach of having specific targets set for the number of women to be recruited in each group entity or function as I feel this can create a perception of favouritism being granted based on gender, and ultimately, does a disservice to the empowerment of women in the long run. Instead, what we are focusing on is awareness across the group of drawing more women into the recruitment funnel to begin with so that recruitment decisions can be based fairly on qualifications, skills, and role-specific requirements. We are also aware that there is heavy unconscious gender bias in this industry, so we’re also going to be rolling out Diversity and Inclusion training at management level across the group to generate awareness about varying types of bias and promote fair and equitable decisions at all levels. MEConstructionNews.com | April 2021

THE BIG PICTURE

03 SPAIN

01 UNITED STATES

Comansa expands flattop tower crane range

Bentley Systems acquires Seequent in $900m deal Bentley Systems has entered into a definitive agreement with investors led by Accel-KKR to acquire Seequent, a specialist in software for geological and geophysical modelling, geotechnical stability and cloud services for geodata management, visibility, and collaboration. The deal is for $900m in cash, subject to adjustment, plus 3,141,361 BSY Class B shares. The acquisition will deepen the potential of infrastructure digital twins to help understand and mitigate environmental risks, advancing resilience and sustainability.

02 UNITED STATES

Ayana Holding and Marsan Real Estate Group form JV for $1.6bn Florida project Ayana Holding, the Dubai-based real estate eco-system provider, has announced the formation of a joint venture with Marsan Real Estate Group, a Floridabased property developer, to develop the $1.6 billion BellaViva project in Whispering Hills, in the United States. The development comes complete with golf courses, restaurants, shopping malls, a medical clinic, boutique hotel, spa, hospital, and commercial spaces and consists of 5,500 luxury homes across 1,800 acres of land, hills, lakes and nature reserves.

04 GERMANY

06 BAHRAIN

Diyar Al Muharraq launches Mozoon

Wolffkran achieves climate-neutral certification in Germany Wolffkran has announced the achievement of an important green credential, becoming one of the first manufacturers in the industry to be certified in Germany as a climate-neutral company. The global tower crane heavyweight said the step is a continuation of its drive to “live up to its pioneering reputation”. Andreas Kahl, managing director of Wolffkran Germany, also announced several other climate initiatives to be carried out by the crane manufacturer. The certification was conducted by Fokus Zukunft GmbH & Co.

April 2021 | MEConstructionNews.com

Tower crane manufacturer Comansa has expanded its 21LC series of flat top cranes by adding two new models with load capacities that are on average 16% and 23% higher respectively over the existing 21LC550 model from which they have evolved. The new 21LC600 and 21LC650 models offer maximum load capacities of 20t and 25t and can be assembled with ranges of between 30-80m with configurations every 5m, allowing a maximum point load of up to 4.95t. Both models also incorporate an optional boom configuration that allows the total range to be extended to 85m at the tip.

05 EGYPT

Aldar offers to buy 51% stake in Egypt’s Sodic Aldar Properties, the UAE-based developer, has said that it has submitted a preliminary non-binding offer for a majority stake in the Egyptian real estate group, Sixth of October for Development and Investment Company (Sodic). The offer for a minimum of 51% of the outstanding share capital of Sodic is subject to due diligence, applicable regulatory approvals and other conditions, a statement said. It will be implemented by a consortium controlled and majority owned by Aldar, it added. The mid-point of the range values the company at $420 million and represents a 14% premium to Sodic’s closing price on March 11, 2021.

Diyar Al Muharraq, the largest real estate development company in Bahrain, has announced the launch of its latest freehold residential plots project, Mozoon, within its fully-integrated modern city. Located in the heart of the masterplan, Mozoon is categorised by its prime waterfront location, with views overlooking the main canal, a statement from the developer said, adding that the development has been designed to meet a diverse spectrum of individual home builder’s needs providing options of both waterfront plots as well as inner residential plots with sizes starting from 320 sqm.

01 02

THE BIG PICTURE

06 07

05 08

08 SAUDI ARABIA

PMKConsult appoints new KSA head 07 QATAR

L&T unit secures 400kV substation contract in Qatar Larsen & Toubro (L&T) has announced that its Power Transmission & Distribution business unit has won a major substation contract in Qatar. As per the terms of the deal, the company will install a 400kV substation to help improve grid stability and enable the use of existing switchgear without major replacements. Issuing an update about its recent business activity, the company said it also won several orders across its spectrum of offerings in India including renewable energy projects in Gujarat and Rajasthan.

Former KEO International VP Mark Jamieson has joined PMKConsult as its first new executive appointment since the 3SixtyConsult merger at the beginning of the year. A well-known and respected industry figure, Mark Jamieson, CEing. FICE will join the leadership team “taking the helm” in KSA as Director, said the firm in a statement. Jamieson will be based in Riyadh and has previously served as VP for KEO International Consultants where he headed its Project Management/ Cost Management (PM/CM) division and was general manager for KSA.

09 UNITED ARAB EMIRATES

Diales establishes in-house team of Arabic-speaking technical experts Diales, a global specialist in expert witness services, has launched a new market offering for Middle East-based clients requiring litigation technical support in Arabic. The firm has established a unique in-house team of Arabic-speaking technical experts, who are able to assist clients in the submission of complex technical matters to local courts across the GCC region, and in the presentation of the case in court. The highly experienced team has already been involved in several landmark litigation disputes, worth over $272.2 billion.

MEConstructionNews.com | April 2021

THE BIG PICTURE

11 10

13 12

18 14

10 UNITED ARAB EMIRATES

12 UNITED ARAB EMIRATES

JC Maclean wins $32.6m contract for interior fitout of Reem Mall

Tadweer recycled 1.9m tons of C&D waste in 2020

JC Maclean International has been appointed as the interior fit-out contractor on Reem Mall, Abu Dhabi. It was appointed by the main contractor Itinera Ghantoot to execute the interior works at a cost of $32.6m. Reem Mall is being developed by Al Farwaniya Property Developments LLC, with Dewan Architects and Engineers as the lead engineers. The three-storey mall will feature the world’s first indoor snow park, Snow Abu Dhabi. The total built-up area of the mall is said to be 600,000m2.

April 2021 | MEConstructionNews.com

11 UNITED ARAB EMIRATES

Dubai launches 2040 Urban Master Plan

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai has launched the Dubai 2040 Urban Master Plan that will map out a comprehensive future map for sustainable urban development in the city. The Plan is aligned with the UAE’s vision for the next 50 years and is focused on enhancing people’s happiness and quality of life. It will focus on reinforcing Dubai’s competitiveness as a global destination by providing a wide diversity of lifestyle and investment opportunities for citizens, residents, and visitors over the next 20 years.

Abu Dhabi Waste Management Centre (Tadweer) recycled 1,915,724 tons of construction and demolition (C&D) waste in Abu Dhabi in 2020, accounting for 80% of the total C&D waste it handled in the year. The total tonnage of recycled waste is equivalent to 255 domes of the Louvre Museum Abu Dhabi. The emirate also accounted for 2,400,000t or 32% of C&D waste handled in 2020. In order to reduce waste resulting from C&D activities across the emirate, Tadweer is implementing various programmes to enhance its recycling capabilities.

THE BIG PICTURE

14 UNITED ARAB EMIRATES

SEWA completes $2.65m strategic water project in Kalba 13 UNITED ARAB EMIRATES

DXB Entertainments transfer $1.3bn debt to Meraas DXB Entertainments, the Dubai-based leisure and entertainment company and operator of the emirate’s major theme parks, has said that it has won approval from shareholders to transfer $1.3 billion debt to the UAE developer Meraas Leisure and Entertainment, in exchange for 53 billion ordinary shares during a general assembly held on March 9, 2021. Shareholders also approved the board’s proposal to increase the issued share capital of the company from $14.5 billion to $17 billion and backed the listing of the conversion shares on the DFM.

The Sharjah Electricity and Water Authority (SEWA) has announced the completion of a $2.65 million project to establish a strategic water reservoir with a capacity of 2 million gallons, as well as the installation of six modern distribution pumps in the city of Kalba. The project aims to ensure the water supply across all regions, in line with SEWA’s strategic plan and its future vision, which is aimed at achieving a balanced approach between development and conservation of natural resources in line with future expansions.

15 OMAN

Oman announces $4.2bn green refinery project in Duqm A new $4.2 billion refinery that will leverage environmentally friendly technology will be built in Oman’s port city of Duqm. The plant will be developed through a public-private partnership between the Oman government and Canada Business Holdings (CBH), in collaboration with the Special Economic Zone Authority at Duqm (SEZAD). The plant will refine petroleum using technology that is less harmful to the environment than conventional methods. The plant is expected to produce about 300,000 barrels of oil a day.

17 INDONESIA

DP World inks deal for $1.2bn Indonesian port 16 INDIA

Ritchie Bros sees increase in demand from India for mobile cranes

Global machinery and heavy equipment auctioneers Ritchie Bros. has reported that India is emerging as an important buyer market for used Middle Eastern mobile cranes and heavy lifting equipment sold in the company’s auctions in Dubai. Ritchie Bros. said in a statement that in 2020, its Middle East operations experienced a gradual increase in demand from Indian buyers at its Online Timed Auctions, with sales of some mobile crane categories increasing three-fold compared to the same period the previous year.

DP World, Caisse de dépôt et placement du Québec (CDPQ) and Maspion Group have inked a $1.2 billion deal that will see an international container port and industrial logistics park take shape in the Gresik region of East Java. Works on the projects are expected to begin in Q3 of 2021 and once complete, it is expected to enhance East Java’s position as a key trade gateway for Indonesia. DP World will set up a joint venture company along with CDPQ’s global investment platform and Maspion Group for the project.

18 CHINA

JLG invests $25m in battery technology company Microvast JLG Industries has announced a planned investment of $25m by its parent company Oshkosh Corporation in Microvast, a global provider of next-generation battery technologies for commercial and specialty electric vehicles. The new partnership, in combination with the company’s existing electrification supply chain partners, will “continue to strengthen and advance the development of industry-leading electrified solutions across the JLG product line”, including boom lifts, scissor lifts, low-level access lifts, vertical access lifts, amongst others.

MEConstructionNews.com | April 2021

MARKET REPORT

Industry outlook

Qatar Construction Overview for Q2 2021

QATAR

Dr Deva Palanisamy, VP of Project Intelligence for ProTenders, provides an outlook for Qatar’s construction sector as we move into Q2 2021

ith about $253.9 billion worth of projects planned or underway, Qatar is investing heavily to diversify and expand its economy and to meet the needs of fast-growing populations. In early 2021, Qatar and GCC neighbours signed the AlUla Agreement, ending the GCC diplomatic dispute that had left Qatar isolated. The re-opening of ties has set a positive tone and eased major sectors like transport, commercial and investment environment. In a positive development, several PublicPrivate Partnership projects have been

April 2021 | MEConstructionNews.com

sanctioned which should help to boost local and international investors confidence. Furthermore, following on from the economic and oil prices recovery in the latter half of 2020 and in 2021, the country’s construction activity is also set to recover. Public sector tendering had slowed to a crawl due to Covid-19 pandemic outbreak in 2020. However, the market picked up again in Q4 2020. A major driver of this is of course, the FIFA World Cup 2022. Qatar has driven massive investment into the infrastructure projects required to deliver for the tournament. The country’s project pipeline has more than 479 planned developments worth $86 billion that are yet to be awarded, with planned infrastructure projects accounting ($38.1 billion) for a large portion of overall investment. According to ProTenders data, there are currently 4653 projects under construction, with Urban sector projects accounting for $73.3 billionn by value. As of March 2021, the total project value is estimated to be worth $253.9 billion. The infrastructure and Energy sector is likely to have the highest share (41.75%, or $106 billion), followed by the Urban sector with 40.41% or $102.6 billion, and the Oil and Gas sector with 17.8% or $45.2 billion. The oil and gas sector will be the most stable in terms of

contract awards size year on year, ProTenders says, forecasting that the greatest growth will be in the infrastructure sector as development. Other key sectors forecast to witness greater development are the healthcare, education and hospitality sectors once the restrictions gradually ease and normality is resumed. There is a slowdown in new project announcements since the start of the crisis. It is not very clear if the tenders that were under evaluation before crisis will be shelved/ awarded. Hence, it is difficult to predict at this point if 2021 is going to be almost the same as 2020 or better or worse, but since FIFA is just a few years away, the majority of infrastructure work needs to be carried out. “Despite the uncertainty, Qatar remains wealthy and committed to their development plans. This will continue to drive huge investments into capital projects. “The investments under its Vision 2030 are expected to provide growth momentum over the coming years, as infrastructure spending will remain a priority for the government to support the economy,” Dr Deva Palanisamy says. “Longer term, there are still questions over the projects market post the World Cup, for which the government is expected to reveal over the next two years as part of its 2030 Vision,” she concludes.

MARKET REPORT

VALUE OF PROJECTS BY STATUS ($BN)

ONGOING PROJECTS BY SECTOR ($BN) Planning

On Hold

14.6

135.9

Infrastructure

389.8 Total Under Construction

UPCOMING PROJECTS BY SECTOR ($BN)

Urban Buildings

67.9

73.3

Infrastructure

Urban Buildings

38.1

29.3

167.9 Total

85.9 Total

Oil & Gas

Design

167.9

37.2

Tender

34.2

26.7

18.5

The investments under its Vision 2030 are expected to provide growth momentum over the coming years, as infrastructure spending will remain a priority for the government to support the economy”

200

1000

100 Design

On Hold

2000

Under Construction

300

On Hold

Under Construction

3000

Tender

400

Planning

Under Construction

4000

Tender

500

Design

Planning

5000

Tender

INFRASTRUCTURE PROJECTS BY STATUS (TOTAL NUMBER)

Design

OIL & GAS PROJECTS BY STATUS (TOTAL NUMBER)

Planning

URBAN BUILDINGS PROJECTS BY STATUS (TOTAL NUMBER)

CONSTRUCTION CONTRACT AWARD FORECAST Q2 2021 ($BN) Main Contract Award

3.02

Tender

Postponed Award

31.2 10

Source: ProTenders

34.2

MEConstructionNews.com | April 2021

ANALYSIS

Collaboration

Collaborative Advantage in the Construction and Engineering Industries MIDDLE EAST

While everyone agrees that collaboration is needed for the industry to survive, Dr Fadi Bayoud of Strategic Anchors, asks if anyone actually knows what it entails and how it can be applied? April 2021 | MEConstructionNews.com

t the end of February 2021, the UAE launched the National Guide for Smart Construction, which includes “benchmarking qualifying contractors’ capabilities and enhancing cooperation between architects, designers and contractors to improve the overall results of the construction project, including the construction index, unified smart building index”.

This is excellent news, but it is not enough. The industry should not only seek “cooperation”, but rather “collaboration”, and not only between the architects, designers, and contractors, but also with the client/developer/owner/ operator and the regulator. On the same grounds, construction requires that we exit the transaction mentality of projects and enter the mentality of “construction business must serve the society”,

ANALYSIS

where the true value can then be created for the betterment of lives. Another important announcement also made the news mid of March 2021: Dubai2040 Urban Master Plan. It is “a comprehensive plan that lays out the future of Dubai’s sustainable urban development … with the aim of transforming the emirate and creating a truly interconnected, people-led city that balances community with tourism and modernity with heritage and nature.” This futuristic plan requires modern construction engineering activities that will be successful only if they are based on a thoughtful collaboration between all stakeholders along the entire Lifecyle of the project. Thus, we need to re-think how construction projects must be initiated, developed, constructed, and operated in a collaborative manner. COLLABORATION There have been many attempts in the region to increase the level of collaboration amongst the four major stakeholders (Client/ Developer, Consultant/Engineer, Contractor, Regulator), and all have contributed to increasing awareness and finding solutions for certain issues. However, none of these attempts has worked on the concept of “Collaborative Advantage” which allows a deeper analysis of issues and relationships as a way of finding solutions that are aligned with the different players’ diverse, and sometimes contradictory objectives. In 1994, the Harvard Business Review published a paper by Rosabeth Moss Kanter which uncovered three fundamental aspects of alliances/collaboration: • They must yield benefits for the partners, but they are more than just the deal. They are living systems that evolve progressively in their possibilities. Beyond the immediate reasons they have for entering into a relationship, the connection

offers the parties an option on the future, opening new doors and unforeseen opportunities. • Alliances that both (or all) partners ultimately deem successful involve collaboration (creating new value together) rather than mere exchange (getting something back for what you put in). Partners value the skills each brings to the alliance. • They cannot be “controlled” by formal systems but require a dense web of interpersonal connections and internal infrastructures that enhance learning. Thus, Collaborative Advantage must consist of shared gaols (Bryson, Ackermann, and Eden 2016) that guarantee achieving together what cannot be achieved separately (Huxham and Vangen 2005). For engineering construction, any attempt to explore a brighter future without finding Collaborative Advantage is futile. This unfortunately does not happen overnight or through a few workshops that do not dig deep enough to understand, and stand on, the purpose and objectives of each of the major players. Senior executives know that each of the four major stakeholders

have different sets of goals and that they will do “anything” to achieve these goals, even if this means not letting others achieve their goals when things get messy, or even worse when things are still working fine, but each wants the ultimate control and win. The main question is, thus, how to help the players in achieving this “Collaborative Advantage”?

It is time that stakeholders discussed what, where, how, why and when they need to do things differently, sustainably, and profitably for the benefit of all. It is their collective duty to find the advantage that allows their firms to be part of the future”

OBJECTIVES Firms are made for a purpose: achieving a goal, or more specifically, a system of goals (that is several goals reinforcing each other by patterns and causality). Generally, whatever does not help in achieving those goals is not given priority, and thus either is neglected or is hindered. Isn’t this a natural process for all businesses and industries? Every organisation considers that it has the right to do all that is possible to achieve its economic, business, and operational objectives. However, when it comes to the construction industry, we must realise that there are common goals among the major stakeholders, and they are held dear to each. Hence, for a relationship to work and thrive, we must categorise goals that allow for a better understanding of what

PUBLIC VALUE GOALS

Extend beyond core and shared goals of the project (be it a private development or public asset) and need the contribution of all the stakeholders. Examples are CSR initiatives that contribute to the cultural, educational, creative, societal values SHARED CORE GOALS

Shared by more than one organisation and made possible through collaboration

NEGATIVE-AVOIDANCE GOALS

Goals that are the negative consequences of strategies used to achieve other goals and thus are risks that need to be identified, assessed, and possibly managed

NEGATIVE PUBLIC VALUE

CORE GOALS

The core of, or central to, an organisation achieving its mission

FIGURE 1: COMMON GOALS AMONG THE MAJOR STAKEHOLDERS

Undesirable public value consequences generated by pursing strategies to achieve other goals

MEConstructionNews.com | April 2021

ANALYSIS

FIGURE 2: EXAMPLES OF CORE GOALS TECH LEADERS

FIGURE 3: EXAMPLES OF SHARED GOALS

GROW TALENT

BE TRUSTED

POSITIVE CF

LEARNING

BUILD PARTNERSHIPS

INCREASE PRODUCTIVITY

MAINTAIN

EMPLOYEE WELFARE

GROWTH

WEALTH

IMPROVE PERFORMANCE

REDUCE COST

PROFITABILITY REDUCE REWORKS

is important for each and what is commonly important for all. Bryson, Ackermann, and Eden in their 2016 article at The American Society for Public Administration categorised goals that lead to collaborative advantage. These goals can be seen in Figure 1. FINDING AND AGREEING ON GOALS The challenge is in the processes of finding and agreeing on the shared core gaols and public value goals that pertain to the specific project. In order to make this process less challenging and more productive, facilitated workshops are run with representatives of the

major stakeholders of the project; these workshops are based on two important concepts: anonymous contribution and procedural justice. This same process will also find the risks and negative objectives that all parties must work to avoid. Once these goals are agreed upon and linked together using causality mapping, they form a system of goals, where one goal leads to the other. Then, an agreement amongst the stakeholders is reached on what strategies are required to: (See Figure 4) It must be mentioned that the above process can be made on two levels, Industry nation-level and project-level, as seen in Figure 5:

FIGURE 4: COLLABORATIVE ADVANTAGE

ANONYMITY One of the factors that makes this method work is “Anonymity”, where people get separated from the problem (face-saving is guaranteed) and feel no emotional or political impacts for saying things that they think should not or could not be said. Thus, this creates an environment where collective intelligence and objective reasoning work synergistically in better understanding the problem and consequently in proper decisionmaking for strategic alignment between the major stakeholders. A MINDSET SHIFT However, a new mindset is required to achieve the Collaborative

INCREASE QUALITY

Advantage. It is time that stakeholders sat on a round table and discussed what, where, how, why, when they need to do things differently, sustainably, and profitably for all benefit of all. It is their collective duty to find the collaborative advantage that allows their firms to be part of the future; this will require however inclusive characters and leadership with high standards. REFERENCES: Kanter, R.M., 1994. Collaborative advantage. Harvard business review, 72(4), pp.96-108. Bryson, J.M., Ackermann, F. and Eden, C., 2016. Discovering collaborative advantage: The contributions of goal categories and visual strategy mapping. Public Administration Review, 76(6), pp.912-925. Vangen, S. and Huxham, C., 2005. Aiming for collaborative advantage: Challenging the concept of shared vision. Advanced Institute of Management Research Paper, (015).

FIGURE 5: TWO LEVEL AGREEMENT PROCESS

AC HI

L DE

GO A

R IS K

S / OP P OR

T IE

ST A

Achieve the shared core goals and public value goals, without hindering the core goals. Actually, there is a higher probability that core goals become more attainable due to the tangible and intangible benefits of collaboration and alliance

Identify, mitigate risks, and/or spot opportunities coming from negative goals April 2021 | MEConstructionNews.com

Hold stakeholders accountable

NATION INDUSTRY LEVEL

PROJECT / PROGRAMME PORTFOLIO LEVEL

A set of selected players meet in facilitated workshops to anonymously explore, surface and link the issues, risks, opportunities and goals that govern the macrorelationship of the major stakeholders in the market

The major stakeholders meet in facilitated workshops to anonymously explore, surface and link the issues, risks, opportunities and goals that govern the relationships within the specific project(s) they are involved in

Date

25 May

Venue

Ritz Carlton JBR

R I T Z C A R LT O N J B R , D U B A I , U A E

Charting the course of architecture, interior design and master planning 25 May 2021

About the

Future of Architecture Influences such as climate change, increased urbanisation, health and wellbeing, and - more recently - the outbreak of COVID-19, are challenging construction industry stakeholders to reimagine the exterior and interior design of buildings, as well as the master plans of cities. New materials and ever advancing technology have also opened up a realm of possibilities, all of which begs the questions – what will buildings and cities of the future look like and how can they better support and nurture our day-to-day lives?

Insightful

Discussions This event will bring together the industry’s leading minds to engage in discussions and share presentations, all of which you will be able to follow from the comfort and safety of wherever you are. Complimentary

This virtual summit will bring together experts to discuss trends, opportunities and much more.

Networking

Get in touch

Opportunity

Content

Sponsorship

Jason Saundalkar | +971 4 375 5475 jason.s@cpitrademedia.com

Andy Pitois | +971 4 375 5473 andy.pitois@cpitrademedia.com

Event Partners GOLD SPONSOR

SILVER SPONSOR

BRONzE SPONSOR ASSOCIATED PARTNER

PRESENTED BY

April 2021 | MEConstructionNews.com

IN PROFILE

Emirates NBD Asset Management

Refurbish to Recover

ANTHONY TAYLOR, HEAD OF REAL ESTATE AT EMIRATES NBD ASSET MANAGEMENT, TELLS BIG PROJECT ME THAT UPGRADING AND REFURBISHING EXISTING ASSETS WILL HELP IMPROVE OCCUPANCY LEVELS IN A CHALLENGING MARKET SPACE

MEConstructionNews.com | April 2021

IN PROFILE

n September 2020, ENBD REIT, the shariah-compliant real estate investment trust managed by Emirates NBD Asset Management, announced the launch of a major refurbishment programme for the largest asset by value in its portfolio – Al Thuraya Tower in Dubai Media City. Valued at $77.04 million, the tower accounts for 20% of ENBD REIT’s total portfolio value and consists of two basement levels, ground floor retail units, five floors of parking, and 24 floors of leasable office space, at a total new leasable area of 19,376sqm. Constructed in 2005, the building’s refurbishment project includes aesthetic improvements and material upgrades, as well as the construction of infrastructure to align it the standards of newer, nearby buildings, ENBD REIT says, adding that the project was a strategic measure to enhance the tower’s leas ability and boost occupancy levels.

April 2021 | MEConstructionNews.com

The pressures faced during the pandemic provided a good opportunity for landlords to assess their buildings and identify where improvements are necessary to improve occupancy as the market reopens” Destination of choice Anthony Taylor says that ENBD REIT intends to make their assets a destination of choice for existing and potential tenants.

$5.4m

Budget to upgrade Al Thuraya Tower

Amongst the upgrades made were changes to the foyer and entrance, as well as to lighting and tiling in corridors throughout the tower. Common bathrooms also had their layouts improved and restyled, with increased access for people of determination, while extensive upgrades were carried out to fire escape stairs, chillers, and lifts, as well as to the car park, which included new signage, re-surfacing, lighting, and painting. Furthermore, extensive measures were taken to ensure that the building operates as a safe and virus-free environment for its occupants, in light of the COVID-19 pandemic.

The project to upgrade Al Thuraya Tower is but one example of ENBD REIT looking to add value to its portfolio through an active asset management strategy that aims to improve the leaseability of its units to achieve tenant satisfaction. This strategy is set to continue into 2021, with Anthony Taylor, head of Real Estate at Emirates NBD Asset Management telling Big Project ME that the current focus is on ENBD REIT’s office portfolio, with ground-floor upgrades being made to the trust’s Dubai Healthcare City’s 25 and 49 buildings, while it has also created smaller, fully fitted offices in Burj Daman for businesses looking for ready-to-move spaces. “Our biggest project at the moment is the refurbishment of Al Thuraya Tower 1 in Media City, our largest asset by value. The building has seen some pressure on occupancy, and the Board has approved a major refurbishment of the building, with the intention of transforming this asset into a destination of choice for potential tenants,” he explains. “For the refurbishment of Al Thuraya, we engaged consultants Savills as project manager and cost consultants, Bluehaus as interior designers, KPS as the main fitout contractor and KONE as lift suppliers. The ENBD REIT Board

IN PROFILE

approved a budget of up to $5.44 million to facilitate these works. “For our Burj Daman office spaces, we appointed Colliers as project leaders, Atelier Five Interior Works LLC as our fitout contractor and, Spencer Interiors and Sedus as furniture specialists. For our DHCC buildings we are working with KPS,” Taylor outlines, pointing out that ENBD REIT works closely with its service providers and appointed entities to ensure that the project scope and budgets are achieved. A large part of this shift towards refurbishment and retrofitting is due to the COVID-19 pandemic impacting the local real estate market, Taylor says. He explains that the office market is seeing tenants require more flexi-office

Number of buildings being upgraded in Dubai Healthcare City Pandemic impact The impact of the pandemic is pushing owners and developers towards retrofitting and refurbishment of assets.

space, and in some cases, smaller spaces to accommodate down-sizing plans. “The pressures faced during the pandemic provided a good opportunity for landlords to assess their buildings and identify where improvements are necessary to improve occupancy as the market reopens. Refurbishing work, particularly in commons areas, is a lot easier to complete while buildings are not operating at full capacity and the prevalence of remote work provided an opportunity to undergo significant work in office assets,” he continues, pointing that an additional benefit for landlords is that due to the market’s changing dynamics, contractors’ pricing remains competitive, providing them with another

We will continue to evolve ourselves in the service of our customers, Dubai, and the region as a whole. As such, we became the first government entity to apply blockchain technology across all its operations” MEConstructionNews.com | April 2021

IN PROFILE

In addition to upgrading our assets and maintaining an active leasing strategy we are closely monitoring our loan to value (LTV) ratio and would consider disposals if the right pricing for an asset can be achieved” April 2021 | MEConstructionNews.com

incentive to finalise refurbishments in the current environment. “With the real estate sector facing market headwinds there is definitely a realisation that not upgrading assets can have a long-lasting effect on performance. Retrofitting assets is important to maintain tenant satisfaction and attract new tenants in the future,” he explains. Taylor also emphasises that ENBD REIT is actively engaged in the refurbishment of four of six office buildings, and that maintenance of assets to a very high standard is a key part of their asset management strategy as occupancy levels are crucial to the company’s performance as a REIT. Switching focus, Taylor highlights that

Refurb strategy ENBD REIT is actively engaged in the refurbishment of its assets in Dubai Healthcare City.

$77m

The value of ENBD REIT’s Al Thuraya Tower

while there has been a lot of talk about converting offices to residential units in the medium term as office spaces remain under pressure. However, he warns that the costs of such repurposing are often not feasible due to the high prices involved, and due to the glut in supply of apartments in Dubai at the moment, which is keeping rentals and capital values down. “We anticipate alternative sectors to remain attractive given longer lease terms and higher demand for units. Healthcare and logistics are the two sectors we expect to outperform in the medium term. As employee wellbeing becomes more of a focus post-COVID-19, office and residential towers with more common facilities and break-out areas that improve occupants experience at the building are likely to perform better. “The market is expected to remain price sensitive for some time so providing this in a costeffective way will be key for landlords realising better performance from their assets,” he continues, adding that the current market conditions makes upgrading existing assets a more viable strategy, compared to disposing and acquiring new assets. “However, once the market starts to pick up it is unlikely that ENBD REIT will be purchasing older assets with the intention to upgrade. We intend to complete the upgrade projects mentioned previously, maintain high levels of building maintenance standards and work with new and existing tenants in securing long-term leases at attractive market rates,” he states. Looking towards the remainder of 2021, Taylor says that he expects net asset values to stabilise in 2021 as Dubai Expo 2020 kicks off and the pandemic is better controlled around the world but cautions that its impact will continue to be felt for a while longer. “In mid-2020 we were anticipating an uptick in 2021 as we came out of the pandemic and market conditions began to stabilise. As we enter the second quarter of the year, we are now expecting the market to stabilise toward the end of the year as the impact of the

IN PROFILE

Our biggest project at the moment is the refurbishment of Al Thuraya Tower 1 in Media City, our largest asset by value. The building has seen some pressure on occupancy, and the Board has approved a major refurbishment of the building”

pandemic still exists globally, despite the UAE Government’s highly effective initiatives to mitigate the spread of the virus and targeting an ambitious vaccination programme facilitating the recovery of overall economy and allowing local businesses to operate in a safe environment,” he says. “A fall in the valuation of our assets has put pressure on ENBD REIT’s portfolio. In addition to upgrading our assets and maintaining an active leasing strategy we are closely monitoring our loan to value (LTV) ratio and would consider disposals if the right pricing for an asset can be achieved. If we took that option, it would most likely be in the office or retail space for the purpose of maintaining a balanced portfolio.”

2021

Net asset value is expected to stabilise in 2021

Right price Taylor states that ENBD REIT will consider the disposal of assets if the right pricing can be achieved.

However, he asserts that ENBD REIT remains in a healthy financial position with positive rental income and sufficient cash to meet all foreseeable obligations, attributing this to the measures taken previously to minimise costs and bring down expenses on debt in a lower interest rate environment. “In line with its strategy to deliver value to shareholders, the REIT’s management has negotiated down a number of service contracts to mitigate the impact of sustained softening in the real estate market, and this has positioned us well to weather current conditions and offer shareholders improved returns when the market begins its recovery,” Taylor states in conclusion.

MEConstructionNews.com | April 2021

April 2021 | MEConstructionNews.com

PROJECT PROFILE

El Hammam PROJECT NAME: El Hammam Agricultural Wastewater Treatment Plant PROJECT LOCATION: Western Nile Delta, Egypt JOINT VENTURE LEAD: Metito JOINT VENTURE PARTNERS: Hassan Allam, The Arab Contractors, and Orascom Construction PROJECT TIMELINE: 18 months

A Future from the Nile

BIG PROJECT ME PROFILES THE EL HAMMAM AGRICULTURAL WASTEWATER TREATMENT PLANT IN EGYPT, A PROJECT THAT WILL HAVE A CRUCIAL ROLE TO PLAY IN THE COUNTRY’S AGRICULTURAL FUTURE AND ITS DEVELOPMENT OF THE WESTERN DESERT REGION MEConstructionNews.com | April 2021

PROJECT PROFILE

t the start of March, Metito, the global provider of total intelligent water management solutions, announced that it had been awarded a contract for the design, supply, construction, operation and maintenance of the El Hammam agricultural wastewater treatment plant in Egypt. With a capacity of six million cubic meters of water per day, the agricultural wastewater treatment plant will be one of the largest in the world when it is completed. It is being jointly developed by Hassan Allam, the Arab Contractors (Osman Ahmed Osman & Co) and Orascom Construction. This vital project is part of the Egyptian government’s strategy to expand the country’s agricultural areas and develop the Western Desert region. Furthermore, the government intends that it will also contribute towards creating a positive social and economic

April 2021 | MEConstructionNews.com

As the technology lead in this JV, we will provide the process design and engineering, sizing and selection, installation, testing and commissioning of the overseas equipment and local electromechanical items” Vital project Karim Madwar says that the project will have a major impact on Egypt’s future.

500

Size of Metito’s workforce on the project

impact in the country, including in the development of new agricultural and population communities. In order to achieve the plant’s delivery capacity, Metito explains that agricultural drainage water from the north of the Nile Delta will be collected and transported to the plant via a 120km-long course. The treated water will then irrigate up to 500,000 feddans west of the Nile Delta area. To understand the scale and impact of this project on Egypt’s agricultural future, Big Project ME spoke to Karim Madwar, Metito managing director – Africa, about the scope of work for the water management

solutions provider, and its impact on the North African country. “Metito has more than 60 years of experience providing customised, comprehensive, and advanced solutions across the full spectrum of its industry with a growing portfolio of mega desalination and wastewater plant projects, developed on fast-track basis. This project was recently awarded to a joint venture consisting of Metito, Hassan Allam, The Arab Contractors, and Orascom Construction. Our scope of work involves the design, supply, construction, and operation and maintenance for five years. “We have been working closely with the Egyptian Authorities implementing their progressive multi-pronged developmental plans that included various strategic water projects including the latest commissioned – the Al Mahsamma agricultural drainage treatment recycle and reuse plant which has a capacity of 1,000,000 m3/day and which was completed in only 10 months. “With our reputation of excellence and keenness to play an active role in Egypt’s water future, we are honoured to be trusted with this project and look forward to its success,” Madwar says, adding that the project is scheduled to be operational in two years’ time. Having been awarded to the JV in March 2021, the scheduled completion date for the contract is in 2023, and Madwar states that as the leading entity

PROJECT PROFILE

on the project, it expects to allocate more than 500 designers, engineers, operators and technicians during the process design and engineering phase, the procurement and installation of electromechanical equipment, and the five years O&M phase. “As the technology lead in this JV, we will provide the process design and engineering, sizing and selection, installation, testing and commissioning of the overseas equipment and local electromechanical items. Metito will carry out the coordination with the civil works partners to assure all works

120

Length of the course transporting the water to the plant in km

have been designed and executed according to the process design requirements,” explains Madwar. The main challenge facing the team is to complete construction, operate the first stream, and complete the supply of all project equipment and materials within the 18 month timeline. An additional challenge is that sewage water with a high salinity of 2000 mg/l is present in the agricultural drainage, making it more challenging in terms of water treatment from the design and construction perspective, he says.

We are confident this will be a synergistic cooperation and we will again achieve a milestone for Egypt and a benchmark for the industry worldwide” MEConstructionNews.com | April 2021

PROJECT PROFILE

We have been working closely with the Egyptian Authorities implementing their progressive multi-pronged developmental plans that included various strategic water projects” April 2021 | MEConstructionNews.com

Atif Abdel Gawad, Metito Africa projects director adds that the high salinity of the drainage water means that it will require special pre-treatment and mixing it with normal irrigation water to get the quality of treated water suitable for irrigation purposes. “Another key challenge is that due to the capacity of the plant there is a need for larger-thanstandard sized equipment (e.g.: disc filters) which will be especially tailor-made for El Hammam,” he elaborates while stressing that Metito’s extensive experience in comprehensive wastewater treatment solutions and technology will facilitate such processes.

Tailor made equipment Due to the capacity of the plant, largerthan-standard equipment has been especially tailor-made for El Hammam.

50,000 Feddans irrigated by water from the plant

“Al Mahsama is a good recent example that serves a similar purpose and up until now is the largest operations agriculture drainage recycle and reuse plant,” Madwar points out. “The drainage water is transferred to the plant from Ismailia irrigation drainage canal, located west of Suez Canal, through two individual pump stations crossing underneath the Suez Canal, (the old and new branches of the canal), into a srabuim siphon, from which the water is further pumped through the plant’s pump station using eight vertical turbine type pumps- six working pumps and two on standby- with each pumping at a speed of 7,000m3/hr.”

PROJECT PROFILE

Furthermore, he states that Metito will be utilising its long-standing relationship with its stakeholders on the El Hammam project to overcome any challenges encountered, having previously partnered with them on earlier successful projects. “We are confident this will be a synergistic cooperation and we will again achieve a milestone for Egypt and a benchmark for the industry worldwide.” With the COVID-19 pandemic still a concern, Madwar states. Metito’s standard health and safety principles will be updated and added to, in order to ensure that the workforce is kept in a safe and secure environment, with their well-being put at the forefront. “Metito’s standard HSSQE principles have proven its competency in managing mega-projects with a huge workforce. Our employees are our most valuable asset and the measures we have in place on health, safety, sustainability, quality

and environment follow local and international standards,” he explains. “As a consequence, to the evolving pandemic, additional measures have been put in place as precautionary and preventative measures meant to

Industry benchmark Madwar says that the project will be a major milestone for Egypt and a global benchmark for the industry.

control and prevent the spread of the virus as well as to maintain the health and safety of our people at all times.” Highlighting the importance of the project to Egypt’s future, Madwar states that the ‘iconic national project’ will not only expand the country’s agricultural area, but it will also play a crucial part in developing the West Delta region, creating new sustainable communities that will have a myriad of positive social and economic impacts across the country and region. “The El-Hammam plant forms part of the government’s strategic plans to expand Egypt’s agricultural area and develop the Western Desert region. It will contribute to the creation of sustainable communities, as well as new job opportunities. “Metito is honoured to play an active role in the development of this national mega wastewater treatment project. Without a doubt we will have another benchmark project that we can all be proud of in Egypt,” he concludes.

MEConstructionNews.com | April 2021

In association with:

CONCRETE REPORT Pumping it Up TRUCK-MOUNTED CONCRETE PUMP MAKERS DISCUSS THE POST-COVID MARKET SPACE Printing the Future OUTLINING THE PROS AND CONS OF 3D CONCRETE PRINTING FOR THE CONSTRUCTION INDUSTRY

Leaving a Legacy

BASHAR ABOU MAYALEH SHARES HIS THOUGHTS ON THE INDUSTRY AS HE BIDS FAREWELL TO CONCRETE INDUSTRIES COMPLEX

IN PROFILE

Bashar Abou Mayaleh

“There is no good management if there is no succession plan, and that has never been far from my mind. I was always looking to create a new generation of leaders” BIG PROJECT ME SPEAKS TO BASHAR ABOU MAYALEH, THE OUTGOING MANAGING DIRECTOR OF CONCRETE INDUSTRIES COMPLEX, ABOUT HOW COVID-19 HAS EXACERBATED THE PRESSURES ON THE CONCRETE INDUSTRY, AND WHAT SORT OF LEGACY HE LEAVES BEHIND AT HIS COMPANY Concrete Report 2021 | MEConstructionNews.com

MEConstructionNews.com | Concrete Report 2021

IN PROFILE

aving been at the helm of Concrete Industries Complex (CIC) for the last 22 years, Bashar Abou Mayaleh has seen many peaks and troughs in the concrete industry. Despite the many challenges and difficulties faced along the way, he insists that each of those experiences, no matter how painful, taught him and his team valuable lessons that they have used to good effect. That is why, as he enters his final weeks as managing director of CIC, Abou Mayaleh believes that 2020 will be a hugely important year for CIC’s future, despite it being one of the most challenging on record. “Life always gives you golden chances to learn new things, and this is the best thing to come out of any crisis. We really learnt a lot of new things (from 2020),” he says, speaking to Big Project ME for the final time before he brings the curtain down on his career at CIC. “Firstly, in terms of our safety and environment response to the crisis, CIC did an excellent job in taking all the precautions. We educated our people about the pandemic and how to deal with it, and we were able to create a very nice culture where everybody is responsible towards dealing with this pandemic – that they’re responsible for their health, the health of their colleagues, and towards the health of the community. There has been an amazing level of commitment from CIC staff and workers towards how we responded to the requirements of the pandemic.” However, from a business point of view, things were not quite as smooth. Abou Mayaleh explains that a number of projects were abruptly put on hold or cancelled, which had an impact on

One of the things I’m most proud of is that I’ve always believed in supporting my employees and their career growth. I believe that the next generation of leaders is qualified and ready to continue our success” Lasting legacy Having served as managing director for 22 years, Bashar Abou Mayaleh will be leaving CIC in 2021.

Learning from the crisis The pandemic forced CIC to learn and adapt to new methodologies and ideas in order to continue operations.

Concrete Report 2021 | MEConstructionNews.com

the company’s financial and operational models, due to the huge overheads and difficult break-even points. “We have had a lot of new ideas about controlling and reducing our costs. Some of the actions were painful, because we unfortunately had to lay off some employees. But in general, the balance between the available revenue and our costs was beyond our expectations. The response from our staff and workers

to put forward a lot of initiatives towards cost control was amazing. “But the challenge was in the precast sector, because it is subcontracting. At Emirates Beton and Hard Block, as suppliers, they had relatively fewer challenges, but as subcontractors they were already originally suffering from unfair subcontract agreements even before the pandemic, like many other subcontractors in the industry. “They are suffering from poor

IN PROFILE

cashflow created by those unfair contracts, where everyone in the chain can delay your payment as a subcontractor, and here I’m talking about subcontractors in general,” he states emphatically, highlighting what he calls a crucial issue facing the subcontracting industry. “We could control the operations in a good way, relatively speaking, and the results have been fantastic for CIC, except that we took a hit because of some bad debts. A few major players in the market have gone bankrupt or stopped their payments, and we have had one or two defaults due to this bad debt. Without them, everything was beyond what we had targeted, in fact. “My personal belief is that the global economy will take time to recover, but we are optimistic. Unfortunately, and I don’t like to say this, many of our competitors are in a very bad shape. I always believe in having a strong industry because that is much better for everyone. But now, many of the concrete producers are suffering a lot. “We find ourselves in a much stronger position, which will allow us to continue taking a bigger share of the market. These days, the size of the job are reducing when compared to 2019, but we’re signing some big projects and are really optimistic. In fact, we are entering 2021 with the biggest backlog that we’ve had for the last five to six years,” Abou Mayaleh says. Despite his company’s success, he remains adamant that finding a way to resolve the issues around contracts and payments, and strengthening the concrete industry as a whole, should be of the utmost importance for the construction sector. He points out that CIC has tried to lead efforts to bring the industry together find a way to resolve this conflict but has met with little success. “We kept trying to meet with the industry to discuss how we can give the industry a better chance to serve the construction sector. That would enable the industry to be in a very healthy situation, mainly financially, but unfortunately, with less jobs in the market, clients and main contractors will keep imposing

tougher conditions in the contracts, so I’m not very optimistic. “I think that the government authorities must interfere to emphasise that these kinds of subcontracts, with all these unfair conditions, are void and unacceptable. There has been some discussion with Dubai Municipality recently, and they have been thinking about creating some kind of unified subcontract agreement, but I’m not sure about the quality of inputs to generate such a thing, and how long it might take. It might take another two or three years, and by that time, it might be too late for some companies – in fact, it’s already too late for some companies,” he warns sombrely. “This is a very big subject. If you recall over the last two years, we have witnessed the disappearance of big subcontractors in the electromechanical, precast, steel structure, glass and aluminium sectors. One of the biggest reasons behind this is the unfair subcontract agreements.” Abou Mayaleh states that with subcontractors being forced to take

Market pressures Abou Mayaleh says that subcontractors are dealing with unfair subcontract agreements that are forcing many companies out of business.

2021

CIC is entering 2021 with its biggest backlog in several years

on the risks of the client and main contractors, payments can often be delayed for the slightest reasons, and that lengthy liability periods will only increase the pressure. “For example, my scope of work on a project would be concrete. I finish the first on the project, but I will have to wait till the finishes are being applied to be paid. My retention should be one year from the end of my scope of work, but in general, for all subcontractors, their retention can be three to four years. This has been a big problem, and with the pressure of the economic situation, it’s only increasing.” Despite the many challenges facing the industry, Abou Mayaleh can be content in the fact that he’s leaving CIC in a healthy and progressive state, having spent much of the last 22 years working to develop the company’s technological capabilities, as well as investing in the next generation of engineers, technicians and professionals. Over the years, CIC has developed relationships with both local and international players to find the best and latest advancements in the concrete industry, conducting research to find new mix designs and enhancements, all to deliver the best performance and product to its customers, he says. Perhaps his biggest legacy, however, is the people that he is leaving behind. “I’ve always considered my just as a member of the team. I was always just a big brother and I took care to create a new generation of leaders. There is no good management if there is no succession plan, and that that has never been far from my mind. I was always looking to create a new generation of leaders. “This has been a big part of our success – our belief in bringing together advanced and flexible procedures, while having financial control, and always being progressive. One of the things I’m most proud of is that I’ve always believed in supporting my employees and their career growth. “I believe that the next generation of leaders is qualified and ready to continue our success and take it to new horizons.”

MEConstructionNews.com | Concrete Report 2021

TECHNOLOGY

Concrete Pumps

Pumping It Up MIDDLE EAST

With Covid-19 running as a background theme, three top truckmounted concrete pump makers discuss their measures, models and plans, how the market is behaving, and the region’s constant drive towards higher reach booms Concrete Report 2021 | MEConstructionNews.com

he truck-mounted concrete pump is a vital part of the threepronged concrete ecosystem comprising production, transportation and delivery – or, in equipment terms, the batching plant, the transit mixer and the pump. With the constantly increasing use of ready-mix concrete for almost all construction purposes in the Middle East, whether highrise tower blocks or residential

villas, the wheels of the truckmounted concrete pumps are kept turning constantly, yoked as they are to the wheel of the region’s construction industry. And even in these lean Covid19-affected times, the region still keeps those wheels turning, albeit at slower speed, with projects of various natures. Not the worst of times, then, to bring a new mobile concrete pump into the region, as German concrete specialist Schwing Stetter, represented in the UAE by the Construction

TECHNOLOGY

Machinery Company (CMC), did recently with its S43 model. Ziad Hamade, commercial and logistics manager, CMC, explains: “The MENA region market is one of the major global markets for Schwing, especially for truckmounted concrete pumps. In the past decade or so, we have seen growing market demand and the biggest sales had have been made from our region. “Recently, there is a demand for higher reach booms; in fact, this demand started in 2017 where CMC managed to sell seven units in one year. This demand is still there now, but not it’s not as strong as previous years, as a ready-mix company requires probably only one such highboom unit, or maximum of two, to tackle all their project demands.” Another dampener on the overall demand, of course, is the ongoing Covid-19 crisis. As a global phenomenon, the Middle East region is not exempt from the economic fallouts of the pandemic, and Hamade adds: “Just as every other market worldwide, our region has got affected as well. In such times, you need to be adaptable to the new situation.

In the GCC region, we see demand for selected models, such as the 42m, 48, 55 and 61m boom length pumps. It’s been around 2-3 years now that requests for pumps below 42m have been absent”

Reaching new heights Among Cifa’s new models in the Middle East is the K61L, which has a 61m boom. The model answers the growing demand for higher reach booms.

Thanks to our immediate action and new payment options – such as in-house financing, and easy, long payment tenures - we have managed a slow recovery. There is still demand at low levels for concrete pumps, and the construction sector always has an eye on the future. Considering these two factors, it’s no surprise for us that we were able to recently close a deal for one unit, while another deal for two units is in the final stages of closing.” Hamade believes that a big part of the reason that CMC is still managing to sell its truckmounted concrete pumps in the

depressed economic atmosphere is the quality of the product from its principal – Schwing Stetter. “Schwing produces various models of truck-mounted concrete pumps to target all segments of the market demand worldwide. In our market, though, some of their models outshine others. These models are the 34, 36, 42, 43, 55 and 61, the numbers representing the maximum boom reach. “Of course, beside the truck-mounted concrete pumps, Schwing Stetter has a wide range of other concrete related equipment, such as stationary concrete pumps,

transit mixers, placing booms, mobile and stationary batching plants, and concrete recycling plants. The company is a global concrete equipment specialist and its reputation in the truckmounted concrete pump segment rests on its overall excellence in production.” Hamade adds that since 2003, more than 500 Schwing pumps have been imported to the UAE by CMC and delivered to their end users. “Numbers speak better than words, and this is how good and reliable the Schwing-CMC combination is. We estimate the Schwing-CMC market share to be around 30% of the total market while all the others, including the Asian brands, make up the remaining 70%,” he points out. According to Hamade, what makes Schwing “one of the best and most popular pump makers in the world”, is the company’s trademark Rock Valve system. “No other sequencing valve combines such low maintenance costs per mile with ease of rebuilding as the Rock Valve. All the other brands use the S Tube Valve. And that’s just the beginning: Schwing’s exclusive Super X Outriggers

Essential requirement Cifa believes a model with a boom length of 55m is a “must-have” in the line-ups of all brands in the region, along with the 42m pump. The K55L Steeltech model is among its most popular.

MEConstructionNews.com | Concrete Report 2021

TECHNOLOGY

is another popular feature that makes for super-fast set-up times and provide a compact and stable platform for pumping. And then there is our well-known and very well-received Vector System.” Turning to the new model, Hamade explains: “Our most popular model is the S43, followed with the S42. This is due to the fact that the S43 meets 90% of the job-site requirement vertically and horizontally. The perfect combination of Schwing’s exclusive Rock Valve, Super X outriggers and the Vector Systems makes it the ‘Queen’ of pumps. This is the main reason why we always call the S43 the Queen. This model gives us close to 90% of our sales, compared to all the other models in the line-up. “Other features behind its popularity are the easy-tomaintain and easy-to-operate features. You don’t need to be a technical expert to operate and maintain Schwing pumps once you follow the manuals and safety measures, and attend CMC’s operators training. And all this is underlined by the long lives of the products. Our service department still receives from time to time Schwing models from 1999, which are still operational with major ready-mix companies. Going strong at over 20 years of active service life in a harsh environment such as the UAE is quite unheard of in the truck-mounted concrete pumps segment.” “Schwing has been exporting its pumps for more than 45 years to our market, and they have gained the experience and know-how on what suites the region. All Schwing units for the region are built with a special cooling system to overcome the harsh ambient temperatures of the Middle East. Moreover, Schwing’s R&D development is proactive and is on a continuous progress path to improve the quality and performance of their products according to

the changing nature of job-site challenges, as they arise.” And Schwing is not resting on its laurels. The company has introduced some key new models, such as the 47, which slots in between the 43 and 55. When it comes to commanding customer loyalty, another concrete equipment giant is no less potent. Italian powerhouse Cifa, now under the ownership pf Chinese behemoth Zoomlion, also finds its products inspire a loyal group of customers in the Middle East. Wajih Eit, head of area, Africa, Middle East and South Asia at Cifa says: “If you take the GCC average we are right there among the top-sellers, but if you go country by country, then of course it depends. You have countries where Cifa is second or third, or even the undisputed leader.”

Concrete Report 2021 | MEConstructionNews.com

CAPEX is not really the main thing on the table right now, so only those with established projects in hand are approaching suppliers. Surprisingly, we have sold a 50m pump despite this situation”

Of course, the Covid-19 situation has put a spanner in the works for Cifa, at least temporarily. Eit explains that Cifa was all set last year to make an announcement for a new dealer with a signing ceremony in Saudi Arabia, inviting customers and stakeholders, but “unfortunately we couldn’t travel to do that when the impacts of Covid-19 started to be felt on the ground”. The pandemic had other repercussions on Cifa as well. The company had to suspend operations at its central facility and production plants in Italy for over a month and a half, which directly impacted supply to dealers and customers, and Eit estimates it will tell on Cifa’s bottom line. In fact, Cifa is not alone. It’s projection of 20-25% decline in turnover for 2020 is matched by several of its peers and the equipment industry in general. But the company is taking the bull by the horns and already being proactive. “We are also making a whole revival budget for us and our dealers, and rethinking our targets based on the new data from the market,” Eit reveals. While the revival plans are for the future, Cifa, like all other manufacturers in the market, has had to deal with immediate contingencies caused by the pandemic that have required it to make modifications to its working model. “We work through dealers and due to the safety rules and regulations, they couldn’t send technicians out to support customers at certain job-sites for a period of time where our machines were still working, albeit at a very low scale. So, we have done a lot of online sessions during this period of lockdowns and social distancing - online training sessions with our dealers and online remote support for customers in need of our services. We had a lot of these sessions with our technicians from Italy

TECHNOLOGY

and from the dealers’ side with customers for online remote support, trying to fix whatever can be fixed. But this has been a very short period where dealers couldn’t send their technicians to support customers. But we didn’t have many issues with our machines in this period, anyway.” Speaking of the machines leads Eit to explain Cifa’s offering: “A big advantage that Cifa enjoys is that we have the widest range of the products on the market. In the truck-mounted pumps category, we have a large product line-up, from the smallest to the highest pumps. In terms of technological variations, we have the carbonfibre Carbotech range and the selfexplanatory Steeltech and Classic ranges. In the GCC region, we see demand for selected models, such as the 42m, 48, 55 and 61m boom length pumps. It’s been around 2-3 years now that requests for pumps below 42m – such as the 36 or 38m – have been absent. Instead both the 42m and 55m models are musthaves in our line-up now, as they are for every pump manufacturer.” Among the global giants in the concrete equipment space, Liebherr has perhaps the smallest

presence in the Middle East market, says Ali Kassem, regional sales manager, Middle East, Concrete Technology Division, at the company. Apart from a few sales in Saudi and couple of units in Kuwait, Liebherr does not have the volumes to report as some of its competitors do. Kassem, however, feels this is only the beginning for the brand in the region. “Our market presence in the region is still on the smaller side. We are still at the beginning of our exposure of the GCC market. We have had some sales around the region whether it is in the GCC or Middle East in general, like the Levant area and Africa. But on the whole, we are still developing our product and presence in this market.” And Liebherr is doing this on the back of and advanced line-up of products, he adds. “We may still be in the developmental stage in terms of market presence, but we are looking after our product line. We’ve done a lot of R&D on pumps in general, on the rotation of the pump, and safety. We also opened our new pump production facility in Germany, where they

will be manufactured with the rest of our concrete product line – the mixers and batching plant.” With the brand still being in relative infancy in the region, its presence is not large enough to be impacted to the same level by the Covid-19 situation as the bigger market players. However, Liebherr has still felt the effects of it, Kassem adds. “Obviously, Covid-19 has impacted everywhere. There are jobs to be done in the market but no money flow to back this up. Payments and cash flow are troubling our customers, and their plans have changed to reorganisation and restructuring, as a lot of their projects were either frozen or some even cancelled. CAPEX is not really the main thing on the table right now, so only those who have established projects in their hand and need the equipment for it are ones approaching suppliers.” On the operational side, Liebherr has responded to the Covid-19 situation by making some modifications to the way it conducts business. “Our focus during this time is to be very close to our customers. It has been very

difficult, as with social distancing and people working from home you cannot meet everybody. But we decided that we needed to be in touch with clients, at least from a social responsibility point of view, if not for business. “We know that construction didn’t stop completely in the GCC, so we decided we had to be there and support customers with our spare parts and our service teams, who were always on calls. There were quite a few companies with work, and they needed parts, support and service and we even had to troubleshoot problems in the middle of the night with some customers who were still in production.” The Covid-19 situation has taught some key lessons, feels Kassem. “It’s shown us how to approach the future, whether from design and operations perspective or supporting the machines. I think a lot has to be done on remote operation, self-service and remote support so equipment can be managed remotely. We actually have some products for this, but I think we need to do more. We now have a direction.”

Research and development Liebherr launched its new 42m-boom length model last year and has also developed an advanced pumping element that is common on most of its pumps for simpler maintenance.

MEConstructionNews.com | Concrete Report 2021

COMMENT

3D Printing

Printing the Future MIDDLE EAST

Dr. Mustafa Batikha, associate director of research at the HeriotWatt University Dubai’s School of Energy, Geoscience, Infrastructure and Society, discusses the pros and cons of 3D concrete printing and points the way forward Concrete Report 2021 | MEConstructionNews.com

rapidly growing population is one of our biggest challenges in the 21st century. Recent data from the United Nations confirms that the world’s population will reach 9.7 billion in 2050 with an average yearly increase rate of 0.84% between 2010 and 2050. With this population growth, it is predicted that the global construction industry will record a compounded annual growth rate (CAGR) of 5.7% to reach about $12tr trillion by 2024. Governments around the world are under enormous pressure due to a shortage of affordable housing. For example, the UAE government has taken the initiative of launching The Emirates Development Bank

(EDB) with $2.7bn aimed at financing affordable residential projects for UAE citizens by 2021. On the other hand, there is a demand for addressing important issues in the construction sector, such as sustainability and health and safety, in the backdrop of rapid and cost-effective construction. Thus, the construction industry is in need of new innovative construction technologies such as 3D Concrete Printing (3DCP), which is paving the way for meeting future requirements. UNDERSTANDING THE TECHNIQUE

3DCP was developed to build a structure upwards through a series of layers, one on top of another through a robotic arm or a gantry girder system.

COMMENT

The concrete material in this technology is the printer’s ink, while a nozzle attached to the printing system plays the printing mechanism’s role. The final output is a layer of concrete of the desired shape and thickness. Printer selection plays a vital role in terms of cost and printing quality. For example, the robotic arm offers better flexibility since it has six degrees of freedom. It also allows superior quality in printing for precise, complex printed shapes. Its limitation is the limited arm length. Also, the operation and maintenance of the robotic arm make printing cost higher than the gantry girder by about three times. The robotic arm’s biggest disadvantage is that the printer has an unstoppable process until the element is fully printed. Therefore, design errors will produce material wastage. However, the selection of the printer is defined based on the printed structure’s type. ADVANTAGES OF 3DCP

3DCP in construction avoids the disadvantages of in-situ reinforced concrete (RC), such as excessive construction waste, formwork cost (which comprises more than 60% of the overall cost), formwork preparation time (which takes up 50% to 70% of the total construction duration), and the lack of worker health and safety (where workers’ injuries in in-situ RC construction are double the accidents registered by other industries). WinSun, a pioneer of 3D printing technology in construction, claimed that the labour cost of their ‘Office of the Future’ project in Dubai was reduced by more than 50% when compared to conventional buildings of similar sizes. Compared to Precast Concrete (PC) construction, 3DCP is more economical and sustainable, although PC is faster in terms of construction duration. A recent study by Heriot-Watt University

also confirms that 3DCP reduces cost by 39% and CO2 emissions by 48% compared to PC. There is a high percentage of steel reinforcement in precast concrete, which results in high CO2 emission in the manufacturing process. Besides, the formwork manufacturing process in precast consumes energy, although the formwork can be reused 75 times.

THE GLOBALITY OF 3DCP

Globally, projects implemented using 3DCP include the Rain Collector of 2.15x2.20x2.6 m3 completed within nine hours by XTreeE; the Icon House of 33m2 within 47 hours by Austin Texas; a 38m2 villa within 24 hours by Apis Cor company; a two-storey structure of 400m2 by HuaShang Tengda within 45

days; Dubai’s 250m2 Office of The Future completed within 17 days by WinSun Global; and a two-storey office of 640m2 – the world’s largest 3D-printed building – completed for Dubai municipality within 500 hours by Apis Cor. 3DCP will make further progress, thanks to Dubai’s ambitious plan to 3D-print 25% of the city’s new buildings by 2025. CHALLENGES FACING 3DCP

3D ambitions The world’s largest 3D printed building is a twostorey, 640 square metre, one completed in 500 hours by Apis Cor for Dubai Municipality. The city wants 25% of new buildings 3D printed by 2025.

Looking at the current and future challenges facing 3DCP, various solutions might need to be adopted. To date, no official codes and standards for 3DCP design have been outlined by the authorities. Therefore, research is critical into supporting the issuing of a design standard for 3D printing. The concrete material used in printing has a relatively high cement quantity, making it costly and not sustainable. Developing this material by using recycled substances will reduce the cost and significantly improve sustainability. The structural configurations of the printed elements need to be studied and confirmed for economic design and energy savings. Additionally, printing roofs and elements under bending with a low steel reinforcement percentage needs further research as well. Currently, printed buildings are capable of only rising to one or two storeys with steel reinforcement addition. The challenge of the future is to make 3DCP more suitable for multi-storey buildings under different action scenarios. The use of 3DCP for segmental precast construction requires more intensive research in order to be used in large structures. The connections among segments need to be studied to confirm high performance and low maintenance during their life cycle. More research and development is required to make the 3DCP printer more flexible and efficient.

MEConstructionNews.com | Concrete Report 2021

MEGASHOR

COMMENT

Industry insight

SUHAIL ARFATH HLOOV

How can Digital Twins help achieve net-zero construction?

igital twins are virtual replicas of a physical asset that can be used to simulate scenarios and situations, before the asset is actually built, so as to optimise developments and buildings for peak efficiency and to identify potential issues before they cause a problem. Industry 4.0 is set to be a key part of developing smart cities and buildings and represents a significant evolutionary shift in manufacturing – which will be a key factor for the construction industry moving forwards. Industry 4.0 centres on the cyberphysical connection, as well as the exchange and automation of data, moving physical assets from being static structures into being part of a connected ecosystem. Within construction, technologies such as Big Data, the Internet of Things (IoT) and Building Information Modelling (BIM), amongst others, have already significantly improved the way buildings are being designed, built, operated, and maintained. However, at present, these technologies work in isolation, but certain companies are now starting to marry them to create frameworks for smart cities, where assets, buildings and infrastructure are not only communicating with each other, but actively using the data generated and collected to feed into a Digital Twin model to create an interconnected

network, allowing them to become active elements within the energy landscape. This is possible because the Digital Twin model will allow designers and engineers to develop an understanding of the physics that dictate real world conditions – such as energy flows, environmental conditions, and material attributes. Using machine learning and AI, this data will continuously evolve over the asset’s lifetime, helping to identify patterns in use, where building or network operations aren’t efficient, and help to find solutions to these issues. Digital Twin, can connect disparate data sources and uses analytics to turn data into actionable insights while fostering collaboration and knowledgemanagement across an organisation, giving organizations the flexibility, and making it versatile to meet challenging needs of carbon neutral infrastructure assets. Digital Twins present a massive opportunity to the construction sector as it looks to realise zero-carbon goals, promote sustainable, greener building practices, and create communities and cities that are better for everyone to live in.

Taking a digitalfirst approach helps organisations put their people at the centre of the digital transformation and realise a consistent and reliable digital future. It helps define your digital transformation, where you are and where you are going, your business goals, metrics, outcomes, and how to get there most effectively”

However, if you thought implementing Building Information Modelling – BIM was hard, then realising the vision of Digital Twin might look even harder. This is where a well-defined and thought-out framework/approach like the DigitalFirst framework becomes critical. The Digital-First approach centres on how you empower your people and leverage data to realise your Digital Twin vision for your projects and organisation efficiently. A digital-first requires a sea change in thought and approach. It means reconsidering every aspect of a business, from the tools employees use for everyday tasks to a company’s entire organizational structure and governance. Digital-first does not necessarily mean changing all those things. However, it does mean overcoming the fear of that change and adopting an agile, modern mindset that enables the workforce to innovate and disrupt effectively. Taking a digital-first approach helps organisations put their people at the centre of the digital transformation and realise a consistent and reliable digital future. It helps define your digital transformation, where you are and where you are going, your business goals, metrics, outcomes, and how to get there most effectively. Digital-first focuses on the business outcomes you want to achieve and zones in on the technologies that help you leverage and democratise your data and best help you reach them. No technology or tool, no matter how sophisticated and advanced, is a panacea. However, most businesses can benefit from a Digital-First framework anchored by the four principles: Mindset, Skillset, Dataset, and Toolset focused simply on empowering your PEOPLE at the centre. • Mindset: Cornerstone of Successful Transformation • Skillset: Thrive as a Digital Enterprise of the future today • Dataset: Break down data gatekeeping and silos across project Ecosystem • Toolset: Choose for today’s needs and Tomorrow’s Demands Suhail Arfath is Director, Digital Transformation and Innovation at Hloov. MEConstructionNews.com | April 2021

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Middle East tenders UAE MIXED-USE

Makers District (Phase 2) TERRITORY Reem Island, UAE BUDGET $800 million CLIENT IMKAN Properties DESCRIPTION The project's scope of work consists of a mixeduse development located on Reem Island, Abu Dhabi. Phase 2 entails 1500 housing units and a hotel and about 50000 square meters of office space. COMPLETION 31/07/2021 INFRASTRUCTURE

Gharn Al Sabkha & Sheikh Mohammed Bin Zayed Interchange TERRITORY Sheikh Mohammed Bin Zayed Road, UAE

BUDGET $55 million CLIENT Roads & Transport Authority (RTA) DESCRIPTION The project's scope of work involves the construction of an interchange at Gharn Al Sabkha and Sheikh Mohammed Bin Zayed in Dubai. The project includes the road works, infrastructure works, pavements, landscaping works, street lighting and associated facilities. COMPLETION 30/04/2022 RESIDENTIAL

Al Maryah Residential Tower TERRITORY Al Maryah Island, UAE BUDGET $65 million CLIENT Heights Real Estate Establishment DESCRIPTION The project's scope of work consist of a 38-storey residential tower located at Al Maryah Island, Abu Dhabi. The project also includes apartments, retail outlets, landscape, 3 lower podiums, 3 upper podiums, 18 additional floors which include a health club, 5 mid-rise, 9 lower towers, 7 upper towers, 2 penthouses, car parking facilities, and associated facilities. COMPLETION 30/10/2023

using four (4)-795 kcmil ACSR/ AW CONDOR 54/7 conductor per phase and two (2) OPGW along the length of the new line. The project includes the installation of capacitor banks, conductors, insulators and towers. COMPLETION 30/12/2023 OIL & GAS

Abqaiq NGL Plant Dew Point Control System

SAUDI ARABIA INFRASTRUCTURE

Makkah 380kV Overhead Transmission Line TERRITORY Makkah, Saudi Arabia BUDGET $85 million CLIENT Saudi Electricity Company DESCRIPTION The project's scope of work involves the installation of two 380kilovolts overhead transmission lines (OHTL) to connect the on-going Makkah (MKH) housing 380/110kilovolts substation located at Makkah, Saudi Arabia. The approximate route length of the total overhead transmission line (OHTL) is 93.28 kilometers. The project involves

TERRITORY Abqaiq NGL plant, Saudi Arabia BUDGET $300 million CLIENT Saudi Aramco DESCRIPTION The project's scope of work involves an installation of dew point control system, inlet facilities, dehydration facilitie, inter-connecting pipelines and associated facilities at the Abqaiq NGL plant in Saudi Arabia. COMPLETION 30/01/2024 RESIDENTIAL

Abu Ali Bachelor Camp TERRITORY Abu Ali Island, Saudi Arabia BUDGET $50 million

MEConstructionNews.com | April 2021

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CLIENT Saudi Aramco DESCRIPTION The project's scope of work involves the construction of residential units, administration building, roads, infrastructure works and associated facilities in Jubail, Abu Ali Island, Saudi Arabia. COMPLETION 30/12/2024

OMAN INFRASTRUCTURE

North Al Batinah Independent Water Plant TERRITORY North Al Batinah, Oman BUDGET $320 million CLIENT Oman Power & Water Procurement Company (OPWP) DESCRIPTION The project's scope of work involves the construction of a new water desalination plant of approximately 150,000 cubic meters per day (33 million imperial gallons per day) located at North Al Batinah in Oman. The project also includes water desalination plants, seawater intake system, pre-treatment system, post-treatment system,

laying of pipelines, installation of instrumentation and control system and a pumping station. COMPLETION 30/06/2023 MIXED-USE

Oman Gate TERRITORY Al Seeb, Oman BUDGET $320 million CLIENT Oman Ministry of Tourism DESCRIPTION The project's scope of work consists of a mixed-use development located at Al Seeb, Muscat, Oman. The project also includes a 9.7 hectares waterfront plot, Omani-themed bazaars and heritage outlets, a marina for yachts and leisure crafts, restaurants and cafes. COMPLETION 30/12/2024 INDUSTRIAL

Barka Dates Processing Plant (Phase 1) TERRITORY Oman BUDGET $120 million CLIENT Oman Ministry of Agriculture & Fisheries DESCRIPTION The project is being developed in two phases. The

initial phase includes a processing capacity of 30,000 tonnes per annum, head office building, an administrative building, storage facilities and associated facilities. The final phase will include a total processing capacity of 80,000 tonnes per annum. COMPLETION 30/12/2024

BAHRAIN INFRASTRUCTURE

Madinat Salman & Ramli Housing Development Water Station Augmentation Works TERRITORY Madinat Salman and Ramli, Bahrain

BUDGET $55 million CLIENT Bahrain Electricity & Water Authority (EWA) DESCRIPTION The project's scope of work involves the water station augmentation works located at Madinat Salman and Ramli Housing developments, Bahrain. The project includes one ground storage tank of 5 milligrams in North Bahrain New Town Distribution Station (NBNT DS), and two elevated storage reservoir with all associated works (lot A and lot B) and 1 tank (unit) with a capacity of 5000000 cubic meters of water. COMPLETION 30/12/2024 OIL & GAS

Bahrain Well Head Compression For Non Associated Gas Wells TERRITORY Bahrain BUDGET $50 million CLIENT Tatweer Petroleum DESCRIPTION The project's scope of work involves an installation of well head compression facilities, laying of inter-connecting pipelines and flowlines, mechanical, Instrumentation works and associated facilities in Bahrain. COMPLETION 30/12/2023 AVIATION

Bahrain Aircraft Engine Runup Facility TERRITORY Bahrain International Airport, Bahrain BUDGET $50 million CLIENT Bahrain Airport Company (BAC) DESCRIPTION The project's scope of work involves the construction of an aircraft run-up facility, aircraft parking facilities, warehouses, administrative space, workshops, jet blast deflector and associated facilities at Western Apron in Bahrain International Airport, Bahrain. COMPLETION 30/12/2023 April 2021 | MEConstructionNews.com

TENDERS

QATAR ENERGY

Facility E Integrated Water & Power Plant (IWPP) TERRITORY Ras Rakan, Qatar BUDGET $3 billion CLIENT Qatar General Electricity & Water Corporation (KAHRAMAA) DESCRIPTION The project's scope of work involves the construction of Facility E Independent Water and Power Plant located at Ras Rakan, Doha, Qatar. The project shall cover the installation of a combined cycle power plant with a net power capacity in the range of 2000–2500 megawatt (MW) and a net water production capacity in the range of 100-130 Million Imperial Gallons per Day (MIGD) and design seawater temperature of a maximum of 38°celsius. The project also includes 378,541 cubic meters per day of water. The desalination plant will be based either on the multi-stage flash process (MSF) or on a multiple effect distillation process (“MED”) or on a hybrid solution of MSF or MED plant supplemented by reverse osmosis plant (“RO”) or 100% RO. COMPLETION 30/05/2024 INFRASTRUCTURE

Bu Sidra & Fereej Al Manaseer Road works TERRITORY Bu Sidra and Fereej Al Manaseer, Qatar BUDGET $80 million CLIENT Public Works Authority (ASHGHAL) DESCRIPTION The project's scope of work involves the construction of road and infrastructure works, Telecom ducts, stormwater drainage, interim roads, pathways and pavements, electrical and power systems and associated facilities in Bu Sidra and Fereej Al Manaseer areas of Qatar. COMPLETION 30/12/2023

HOSPITALITY

Gewan Island Corinthia Hotel TERRITORY Gewan Island, Qatar BUDGET $70 million CLIENT United Development Company (UDC) DESCRIPTION The project's scope of work involves the construction of a 110 guestrooms and 30 suites hotel on 13,000m2 area at Gewan Island, Doha, Qatar. The facility includes banquet hall, a basement for car parking facilities, a cafeteria, landscaping works and associated facilities. COMPLETION 30/01/2024

KUWAIT INFRASTRUCTURE

Burgan & Magwa Area Flowlines TERRITORY Burgan and Magwa, Kuwait BUDGET $130 million CLIENT Kuwait Oil Company (KOC) DESCRIPTION The project's scope of work involves the laying of an oil pipeline network and

associated facilities at Burgan and Magwa areas in Kuwait. COMPLETION 30/09/2023 AVIATION

Kuwait Airport Expansion New Passenger Terminal 2 Airside Work TERRITORY Kuwait International Airport City, Kuwait BUDGET $145 million CLIENT Kuwait Ministry of Public Works DESCRIPTION The project's scope of work involves the airside works on the new passenger terminal 2 located at Kuwait International Airport City, Kuwait City, Kuwait. The project also includes passenger mover

tunnel, multiple tunnels to link the new terminal with the airport, baggage transfer tunnel, vehicles moving tunnel, service tunnels, waste management facilities, retail storage and customs control facilities. COMPLETION 30/12/2023 CORPORATE

Boubyan Bank Headquarters TERRITORY Kuwait City, Kuwait BUDGET $80 million CLIENT Boubyan Bank DESCRIPTION The project's scope of work consist of a headquarters building located at Kuwait City, Kuwait. The design concept of the building was inspired by Boubyan Bank’s logo. The headquarters will be home to convention halls, public area, cafeteria, meeting rooms, storage rooms, parking facilities, visitors zone, development of the landscapes and spacious offices. The design reflects the client’s requirements by providing a fully furnished office tower with a combination of maximum floor efficiency and a breath-taking design concept. COMPLETION 30/06/2024 MEConstructionNews.com | April 2021

PROGRESS REPORT

Final update

Nakheel’s Palm Tower reaches 95% completion Landmark development is set to open by October this year

he Palm Tower, Nakheel’s new 52-storey landmark development on Dubai’s Palm Jumeirah is now almost 95% complete, with all components due to open by October this year, the developer has said. Standing at a height of 240 metres above the world-famous island, the luxury mixed-use building is in the advanced stages of fit out, with all exterior cladding completed, a statement from Nakheel says.

April 2021 | MEConstructionNews.com

Located at the heart of the Palm Jumeirah and connecting to Nakheel Mall, The Palm Tower offers all-round views of the island, the Arabian Gulf and the Dubai skyline – and world-class amenities for residents and visitors. The building comprises of 432 luxury, fully furnished residences – which are due for handover from October this year, as well as a 290-room St. Regis hotel, opening this summer. The hotel and residences are topped off by a three-storey rooftop dining and leisure destination which includes The View observation deck, opening soon, as well as AURA Sky Pool, featuring one of the world’s highest infinity pools, and SUSHISAMBA, which will both open later this year. Aqil Kazim, chief commercial officer at Nakheel, said: “The Palm Tower

Landmark addition The Palm Tower is the latest landmark attraction for Nakheel on the Palm Jumeirah.

240 Total

height of the tower in metres

is the latest, iconic addition to Palm Jumeirah and Nakheel’s growing list of landmark projects across Dubai. Its residential, hospitality and leisure components will further enhance Dubai’s position as a world-class destination for living, leisure and tourism. “Capturing the attention of investors across the globe, The Palm Tower Residences is one of the most soughtafter addresses in the region, offering the ultimate in high-rise living, with a host of amenities within the complex, an onsite Palm Monorail station and Palm Jumeirah’s diverse range of dining and leisure attractions on the doorstep.” The studios and one-, two- and three-bedroom apartments occupy levels 19 to 47 of the building, with prices from $462,836. The St. Regis Dubai, The Palm will be located on the first 18 floors of the building.

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