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THE BUSINESS OF CONSTRUCTION

Aggressive Expansion

ZIAD EL CHAAR SAYS THAT DAR AL ARKAN HAS NO PLANS TO SLOWDOWN ON ITS AMBITIONS AFTER A TRIUMPHANT FIRST HALF OF THE YEAR

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CONTENTS

August 2022

ANALYSIS

FEATURES

INSIGHT

In Profile Ziad El Chaar

Expert Voice

Gavin Davids speaks to Ziad El Chaar, vice chairman of Dar Al Arkan about the Saudi real estate giant’s ambitious expansion plans

Youssef Merjaneh of Black & Veatch – EMEA, takes a look at what’s involved in the production of green hydrogen in this month’s exclusive Expert Voice column

Comments

Final Update

The Briefing

Charles K Nmai examines how to achieve carbon-neutral concrete while Drew Gilbert discusses potential of the metaverse

The Big Picture

A wrap-up of the biggest international construction news stories for the month

Market Report

Commerical Real Estate Consultants examines the first half-year performance of Dubai’s commercial property market

Analysis

Project Profile Rosewood Doha

Bentley Systems shares how its software helped Arabian Engineering Bureau to deliver the Rosewood Doha

The industry’s leading experts share their thoughts and opinions about the construction industry

DAMAC begins piling work on its $545m Cavalli Tower luxury residential project

David Clifton of Faithful + Gould, an SNC Lavalin Company, looks at how regional geopolitics are shaping the UAE’s economy

MEConstructionNews.com | August 2022

WELCOME

Introduction

Digital Drivers

t was around a decade ago that I first heard the term Building Information Modelling, when I was a young editor covering the MEP industry for another industry publication. Back then, it was considered to be something of an arcane technology that no one really understood and didn’t really get how it would apply to the construction sector – except for the MEP industry, where several engineers and designers (some of whom I’m still in touch with today) were adamant that this technology was going to change everything. Despite this early evangelism from the MEP sector, the uptake of BIM was still initially very slow. I still remember a senior construction leader confidently telling me that while these ‘fads will come and go’, nothing would ever replace his pencil and drafting table. I do wonder if he’s come around since – I imagine so, since his company has since been nominated (and won) awards for their work in utilising digital construction technology on their projects! This is why we decided to launch the ME BIM Summit all those years ago,

August 2022 | MEConstructionNews.com

starting with small roundtables, and then expanding into all-day events with dozens of speakers and hundreds of attendees. However, as the ME BIM Summit grew, the conversation around it also changed. Especially in the wake of the pandemic, the construction industry knew that it had to evolve if it was to survive. Fuelled by the UAE government’s own digitalisation strategy, the industry has moved forward rapidly, exploring how technology can benefit and improve it. Therefore, we believe that the time is right to also change and take the ME BIM Summit further than it has ever been before. This year, we will return under a brand-new name – the Digital Construction Summit – that better reflects the current state of the industry. This new event will embrace all facets of the digitalisation of the construction industry and will look at how data and technology can open up previously unrealised gains and improvements. So, join us on September 14, 2022, at The Oberoi Grand Hall in Business Bay, where we – and our partners – will be bringing you face-to-face with the new paradigms of construction. See you there!

Gavin Davids

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

CMY

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195 August 2022

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THE BUSINESS OF CONSTRUCTION

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Editorial HEAD OF EDITORIAL & CONTENT Gavin Davids

Aggressive Expansion

ZIAD EL CHAAR SAYS THAT DAR AL ARKAN HAS NO PLANS TO SLOWDOWN ON ITS AMBITIONS AFTER A TRIUMPHANT FIRST HALF OF THE YEAR

ON THE COVER

Ziad El Chaar, vice chairman of Dar Al Arkan, reflects on the real estate giant’s successful first half of the year and shares his thoughts on its regional and international ambitions MEConstructionNews.com @meconstructionn MEConstructionNews me-construction-news

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August 2022 | MEConstructionNews.com

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Date

23 Nov

Venue

Riyadh, KSA

Website

constructionintelsummit.com

R I YA D H / K S A

Understanding the complexities of making Vision 2030 a reality 23 Nov 2022 | Live

About the

Construction Intel Summit KSA

Make

Work on a number of large-scale, iconic construction projects is well underway in the Kingdom of Saudi Arabia, as part of its Vision 2030 blueprint. While the Kingdom’s leadership aims to transform the country, it also wants to be mindful of what this transition means for its people, its culture and its environment.

Meet representatives from the industry and engage with a captive audience of decision makers and influencers, who are involved in purchasing or specifying products and services. Our sponsorship packages offer you a wide range of opportunities adapted to your needs and the level of visibility that you want to reach.

Connections

Therefore, as the GCC’s largest country moves towards a more diverse and sustainable economy, it is essential that the global construction industry equips itself with the knowledge and insight to grasp the unprecedented opportunities presented to them by Saudi Arabia’s transformation. This is why the Construction Intel Summit KSA is coming to Riyadh on 23 November, 2022. The third edition, and the first live iteration of the Construction Intel Summit KSA aims to inform and educate attendees about the massive opportunities that remain across the Kingdom of Saudi Arabia.

Complimentary

Networking

Get in touch

This event presents you with an opportunity to interact and connect with regional industry decision makers and influencers. There are several innovative ways to sponsor and participate from speaking opportunities to branding, interactive live polls to presentations. Contact us for detailed information.

Content

Opportunity

Sponsorship

Gavin Davids | +971 4 375 5480 Jude Slann | +971 4 375 5714 gavin.davids@cpitrademedia.com jude.slann@cpitrademedia.com Raed Kaedbey | +971 4 375 5715 raed.kaedbey@cpitrademedia.com

Event Partners SILVER SPONSOR

SILVER SPONSOR

SILVER SPONSOR SUPPORTING PARTNER

ational

ngineering

PRESENTED BY

ureau

Architectural & Engineering Consultants

ONLINE

MOST POPULAR

INFRASTRUCTURE

Evaluation of prequalification bids for $2bn Bahrain Metro project underway Transport and Telecommunications Minister says the evaluation process will be concluded by the end of July 2022

CONSTRUCTION

Saudi German Health awards $59.5mn in contracts for Riyadh expansion

SUSTAINABILITY

“We have 93% certainty within the next five years of hitting new temperature highs” The global adoption of carbon taxes is required to enforce industry change says WSP Middle East’s Sophia Kee

TECHNOLOGY

Verdantix urges building facility managers to secure building systems against cyber-attacks

CONSTRUCTION

Shurooq reveals plans for adventure project in Khorfakkan Project overlooking Luluyah Beach will help bolster Sharjah as an appealing tourist destination in the region PROPERTY

PROPERTY

Abu Dhabi real estate market saw over $6bn in transactions in H1, 2022 Yas Island, Al Saadiyat Island and Al Shamkha were the top three areas in terms of number and value of real estate transactions in the emirate

Khidmah ranked in top 50 best workplaces in the country for 2022

SUSTAINABILITY

Al Futtaim Group Real Estate partners with TIER Mobility for micro-mobility services

INFRASTRUCTURE

Saudi Arabia and Iraq move forward on electricity interconnection project The completion of this project comes within the framework of Saudi Vision 2030 and its executive programs

Critical debates in the Diversity and Inclusion agendas: lobbying for real-time change

PROPERTY

25 October 2022 Dubai UAE

Provis achieves significant energy and utility savings across residential destinations

MEConstructionNews.com | August 2022

THE BRIEFING

Concrete

The Quest for Carbon-Neutral Concrete MIDDLE EAST

Charles K Nmai, President of the American Concrete Institute, shares his thoughts on how the construction industry can work towards meeting carbonneutrality goals through concrete

August 2022 | MEConstructionNews.com

t’s universally accepted that achieving carbon neutrality must centre around Portland cement and, accordingly, cement organisations such as the Portland Cement Association (PCA), the Global Cement and Concrete Association (GCCA), and the Inter-American Cement Federation (FICEM) have either developed or committed to industry roadmaps for netzero concrete—that is, to fully decarbonise the cement and concrete industry by 2050. These roadmaps involve different strategies and include savings in clinker production, savings in cement and binders, efficiency in concrete production, and efficiency in design and construction— which speaks to the objective of ‘construction productivity’. This includes the decarbonisation of electricity, carbon capture and use/storage,

and the re-carbonation of concrete. Savings in cement and binders and efficiency in concrete production are not new to the industry. Supplementary cementitious materials (SCMs) such as fly ash, slag cement, calcined clay/metakaolin, silica fume, and natural pozzolans are used worldwide, depending on availability, to optimise Portland cement concrete. Other SCMs such as rice husk ash and, in recent years, ground-glass pozzolans are also available regionally. Blending SCMs with Portland cement during the manufacturing process is also not new, though not extensive in North America, where concrete producers typically add SCMs separately, usually as a replacement for Portland cement. The main difference between blending during manufacturing and separate addition is the Portland cement

75%

Portland cement replacement levels of 70 to 75% are being used routinely throughout the United States

THE BRIEFING

replacement that can be achieved by the latter. Separate addition offers flexibility with respect to the types and amounts of SCMs that can be used in a given concrete mixture. Historically, fly ash and slag cement replacement levels have ranged from about 10 to 30% and 25 to 50%, respectively, and the higher ends of the ranges have typically been used in mass concrete applications. Concrete mixtures with combinations of SCMs are currently being used to achieve significant replacement levels of Portland cement in an effort to reduce the carbon footprint of the mixtures. Portland cement replacement levels of 70 to 75% are being used routinely in projects throughout the United States, particularly in high-rise buildings in New York City and California, and replacement levels of about 83% have been reported. These low cement content concrete mixtures require proportioning expertise and the right choice of chemical admixtures to meet project requirements. The projects in New York City include One World Trade Centre and its companion towers, 432 Park Avenue, and 30 Park Place (Four Seasons hotel)—all constructed between 2006 and 2017 with mixtures that contained fly ash, slag cement, and silica fume (high-reactivity metakaolin in the case of 432 Park Avenue for aesthetics). The San Francisco Public Utilities Commission Headquarters building, constructed between 2009 and 2012, had a 70% replacement of Portland cement using fly ash and slag cement. Not to be outdone, the concrete mixtures for the Goethals, Bayonne, and Tappan Zee Bridges in New York City, constructed between 2013 and 2017, had Portland cement replacement levels of 55 to 65% using fly ash and slag cement (plus silica fume for Tappan Zee). What is unique about these projects, and all the others not mentioned, is that the owners, through their design professionals, required the use of concrete mixtures with a low-carbon footprint. Indeed, the push for low-carbon concrete is currently being driven by owners. Greater success can be achieved if design professionals proactively take the lead and collaborate with stakeholders to achieve net-zero

concrete by 2050! Also fascinating is the fact that common SCMs—fly ash, slag cement, silica fume, and highreactivity metakaolin—were used. A wealth of information on these SCMs already exists in ACI documents, and one of our immediate goals is to repackage the information for the general public and highlight and provide a list of low-carbon SCM concrete projects. Traditional SCMs have been used successfully to significantly reduce the carbon footprint of concrete; however, there are issues that must be acknowledged. Issues include availability, depending on geographic location; lack of storage silos at concrete plants for SCMs; and code limitations on SCMs for air-entrained concrete mixtures exposed to de-icing chemicals in service. These issues can translate into higher costs. For example, Portland cement and SCMs must be shipped to Hawaii, making SCMs more expensive for design professionals on the islands. The need to lower the carbon footprint of concrete has led to increased production of Portland limestone cement (PLC) and increased focus on alternate cements and binder materials.

Alternative options The global cement industry is exploring different concrete mixtures to find a way to reduce their carbon footprint.

Achieving carbon neutrality Efforts to achieve carbon neutrality must centre around Portland cement, says Charles K Nmai.

2050

Industry stakeholders hope to achieve net-zero concrete by the target date of 2050

In 2018, ACI Innovation Task Group (ITG) 10 published two documents on these materials: ITG-10.1R-18: Report on Alternative Cements; and ITG-10R-18: Practitioner’s Guide for Alternative Cements. Readers should note that an alternative cement is defined as “an inorganic cement that can be used as a complete replacement for Portland or blended hydraulic cements, and that is not covered by applicable specifications for Portland or blended hydraulic cements.” Binder materials covered by this definition include geopolymers, activated glassy cements, activated fly ash cements, activated slag cements, calcium aluminate cements, calcium sulfoaluminate cements, magnesia cements, and CO2-cured cement. Several of these alternative cements have been available and used in niche applications prior to the current focus on low-carbon concrete. The publication of the two ITG reports preceded the inclusion of alternative cements in ACI 318-19 with the stipulation that the use of such cements is permitted if approved by the licensed design professional and the building official. ACI 318-19 also requires the approval to “be based upon test data documenting that the proposed concrete mixture made with the alternative cement meets the performance requirements for the application including structural, fire, and durability.” The need to have test data documenting performance for the application points to the need for proper assessment and validation of alternative cements and other innovative materials for the concrete industry that are not covered by existing standards and specifications. The pursuit of low-carbon concrete has inspired the introduction of a wide range of products promoted to minimise the Portland cement content of a concrete mixture. These include, but are not limited to, CO2 injection systems, admixtures based on synthetically produced crystalline calcium silicate hydrate (CSH) nanoparticles, synthetic limestone aggregates manufactured from waste CO2, and a powdered admixture based on a blend of dry-expanded polymeric microspheres and mineral powder that eliminates the need for air entrainment in frost-resistant concretes. MEConstructionNews.com | August 2022

THE BRIEFING

Into the Metaverse: Fusing the Real World with the Digital MIDDLE EAST

Drew Gilbert, design manager at OBM International, looks at the opportunities presented by the metaverse for the AEC industry

August 2022 | MEConstructionNews.com

new architectural era is among us, the creation of place making has teleported to a parallel world. A realm that bypasses physical constraints of materiality, structural integrity and enclosure from the physical elements. This has unleashed a new kind of reconceptualization of what architecture is, what it can be, and how we will experience it. As the metaverse concept has been around for decades, it has become a buzzword with the announcement of Facebook becoming Meta and billions of dollars being invested into metaverse technologies. Experiencing the internet will have a new connotation as we enter ourselves into the 2D screen into a fully immersive 3D world; A 3-Dimensional world of connectivity that enables users to shop, visit friends and family, meet with colleagues and clients all in one place. We must ask

ourselves the question on how to best utilise this evolving technology to enrich our lives and the built environment. A 3-DIMENSIONAL WORLD OF CONNECTIVITY The metaverse will become a collection of fully immersive real-time environments interlinked/interoperable with one another where users (in the form of avatars/meta personas) can interact with the environment and each other either for business/entertainment purposes in decentralised and co-created worlds. In short, the metaverse is a virtual reality version of the internet where the outside will be shared as a digital form. It is all possible thanks to the emergence of Web3.0 technology, a world driven by data, decentralisation, and user autonomy. The easiest way to visualise the transition from Web2.0 to Web3.0 is like moving from 2D to 3D. The existing protocols and services of today’s internet

THE BRIEFING

will still be visited, however with Web3.0, we will start to see services built on permissionless blockchains with open protocols, open standards, and built within open “worlds”. This provides massive opportunities for individual users, content creators, and businesses to expand and explore the latest evolution of the internet. While the infrastructure behind Web3.0 is still in the works, the future of the internet looks promising and it’s arriving faster than we think. The primary aspect of architecture was intended to provide shelter to human beings from external actors, in the metaverse this is no longer the case. An entire new world of possibilities has been unlocked. What kind of expression, creativity, and design has become possible? As technology advances, the philosophies continue to evolve. Each metaverse platform has a set of rules, for example a set plot size that may limit the height and footprint, polygon count that may limit the detail of the design, or even a cap on the number of users that can access at once, these new constraints will create a new kind of architecture and it will continue to adapt as the metaverse evolves. The methods of conceptualizing architecture in the metaverse will need to be reimagined. As Architects building and shaping the future of Metaverse Architecture, we will start to incorporate aspects of multiple fields, for example user interface, content design, character design, landscape development, blockchain based protocols, and even game design. Within the metaverse there will be multiple virtual worlds that contain a mix between both the physical and digital world, where people can experience and engage in a vast range of activities. Most activities will be centred around social activities like meeting with friends, clients, and loved ones, but there is also a utility aspect that can enable education to be easily accessed around the world, or even have easy access to governmental agencies and healthcare that are operated 24/7 by expert digital assistants. Each of the current metaverses offer different possibilities; A creator entering the metaverse must first ask what the most important aspects are of what they are trying to achieve. Aspects like daily

The metaverse will become a collection of fully immersive realtime environments interoperable with one another where users can interact with the environment and each other in decentralised and co-created worlds” Different possibilities Drew Gilbert says that different metaverses offer different opportunities to creators, designers and architects.

Decarbonising the Earth Metaverses can utilise Digital Twins technology to represent the physical world and help control energy and emissions.

2030

Google and Microsoft are setting up data centres to run on completely carbon-free energy by 2030

user count, age and demographics of users, open or closed platforms (either enable full freedom of creation or to work within a “design” framework) along with other factors will determine which metaverse platform will best suit their needs. Entering a metaverse may or may not require the purchase of digital land in the form of a Non-Fungible Token (NFT) and purchased with the native cryptocurrency of the platform. The structures in the metaverse are made of polygons or voxels that is defined as three dimensional pixels. Each one of the current metaverses offer different options. While some provide a sprawling, colourful, low poly wonderland. Expanding to other more tightly detailed worlds that focus on high-quality renders that explore niche ideas. And others use cubes as a standard building block for each ethereal build and an ingrained emphasis on recreating an Earth-like world. OPPORTUNITY TO DE-CARBONISE THE EARTH As we are heading towards the next big-tech paradigm shift, we must consider the impacts it may have on our planet. Many blockchains such as Ethereum verify transactions through a method called “Proof-of-work” and this process is an energy consuming process where hundreds of computers on a network solve complex cryptographic

puzzles to verify transactions. Simply put, every transaction that is made using cryptocurrency on a PoW blockchain is energy consuming. The amount of energy consumed for the blockchain along is estimated to be 150 terawatt hours annually. Luckily there are hundreds of blockchains all working towards a more sustainable future. Ethereum network which is the major network that powers the majority of the virtual transactions will be rolling out the next generation that will move to “Proof-of-Stake”, which reduces energy consumption while providing the same transaction verification. In addition to recycling e-waste and setting up 100% renewable energies datacentres, for example, Google and Microsoft are setting up run data centres on completely carbon-free energy by 2030. Another way the metaverse can help in that is by using Digital Twins. Digital twins represent the physical world and allow users to interact with these digital replicas from anywhere and in a number of productive and efficient ways. They are especially effective in helping to control energy usage and carbon emissions. The options are limitless, and the opportunities being presented by governments all over the world are making it more attractive and affordable to rethink how technology can help reduce greenhouse gasses. MEConstructionNews.com | August 2022

THE BIG PICTURE

01 UNITED STATES

03 COLOMBIA

Caterpillar to move global HQ to Texas

Caterpillar Inc. has announced it will move its global headquarters to the company’s existing office in Irving, Texas, from its current location in Deerfield, Illinois. The company has had a presence in Texas since the 1960s across several areas of the company, however Illinois still has the largest concentration of Caterpillar employees anywhere in the world. The company will begin transitioning its headquarters to Irving in 2022. As a result of continuing challenging market conditions and the need to prioritise resources, Caterpillar decided not build its headquarters complex in Peoria.

02 UNITED STATES

Cummins appoints Jennifer Rumsey as president and CEO Jennifer Rumsey, President and Chief Operating Officer (COO) of Cummins Inc will take up the role of President and CEO, starting on 1 August, 2022, the company has announced. Rumsey will be the seventh CEO and first woman to lead the company since it was founded in 1919. She will take over from Tom Linebarger who will continue to serve as Chairman of the Board of Directors and in an Executive Chairman role, working directly with Rumsey on specific initiatives such as completing the pending acquisition of Meritor.

Abu Dhabi DoE inks MoU with Colombia’s Ministry of Mines and Energy A five-year memorandum of understanding (MoU) has been signed between the Abu Dhabi Department of Energy (DoE) and the Ministry of Mines and Energy of Colombia at the DoE’s headquarters. The agreement explores opportunities for collaboration on capability development and sharing of knowledge and information, supporting joint projects and initiatives, and promoting the development of bilateral scientific, technical, technological, administrative, and commercial cooperation.

04 UNITED KINGDOM

06 ITALY

Select Group acquires The Mere Golf Resort & Spa in Knutsford, UK

RINA Consulting names new CEO

Dubai-based real estate developer Select Group has acquired The Mere Golf Resort & Spa in Knutsford, in the UK. The developer said the property is complementary to its existing portfolio of hotels, with key parts of Cheshire, specifically Knutsford, having been identified as a desired location for the group. Offering 81 luxury guest bedrooms, an event capacity of up to 550 people, a championship golf course and golf services, as well as an award-winning spa and health club, the acquisition is a strategic move for Select Group.

August 2022 | MEConstructionNews.com

05 NETHERLANDS

Witteveen+Bos EMEA DMCC appoints Rob van den Boomen as MD Rob van den Boomen has been appointed as the new Managing Director for Witteveen+Bos EMEA DMCC. Boomen is said to posess strong entrepreneurial and leadership qualities, which the firm says are vital for his new role. Boomen has held various positions within Witteveen+Bos over the past 30 years, both in the Netherlands and overseas. He takes over as MD from Daniël Dusseljee, who will be starting a new position within Witteveen+Bos in the Netherlands. Boomen was most recently Managing Director of the firm’s Indonesian office.

Alberto Cavaggioni has been appointed as the new CEO of Italy headquartered engineering consultancy RINA Consulting. He takes over from Roberto Carpaneto who led the consultancy since 2007 and will now serve as President. One of his key responsibilities will be to grow the company’s business in foreign markets. RINA provides a wide range of services across the energy and mobility, marine, certification, infrastructure and real estate and industry sectors. It has a global presence with over 4,400 employees and 200 offices in 70 countries worldwide.

THE BIG PICTURE

04 05 07 06

08 LEBANON

07 SERBIA

Metito to develop, modernise and operate Serbia’s first PPP water project

Metito has been appointed by the City of Zrenjanin and Serbia’s Public Water Company (PWC) to develop, modernise and operate a state-of-the-art water treatment plant in the Zrenjanin. The deal is said to be the first public private partnership (PPP) water treatment project in the Republic of Serbia. The water quality challenge in Zrenjanin is a complex case and, leveraging its global expertise, Metito has devised a sustainable and innovative solution that will see the integration of state-of-the -art technology.

Beirut’s Waterfront City Business Park awarded LEED Gold certification Lifestyle destination developer Majid Al Futtaim Communities has announced that its Waterfront City Business Park in Beirut, Lebanon has achieved LEED Gold certification. Located on the Dbayeh seaside just off the highway, Waterfront City Business Park is said to be “the region’s first and only grade A office facility”. Covering 72,000sqm with 60% of the masterplan dedicated to green open spaces, the pedestrian-only zone features twelve purpose-built office buildings.

09 IRAQ

KSA and Iraq move forward with electricity interconnection project Following the signing of a memorandum of understanding (MoU) at the start of 2022 which outlined an electricity interconnection between Saudi Arabia and Iraq, the two countries have now signed an executive report that outlines the project’s principles. The 435km electrical interconnection will link Arar in northern Saudi Arabia to Yusufiya near Baghdad with a total capacity of 1,000MW and a voltage of 400kV. The project is expected to contribute to the reliability of the electrical networks in the two countries.

MEConstructionNews.com | August 2022

MARKET REPORT

Industry outlook

Dubai Commercial Property Market Review for H1 2022

UNITED ARAB EMIRATES

Commercial Real Estate Consultants report examines the commercial property market in Dubai for H1 2022

he Commercial Real Estate market witnessed unprecedented growth for H1 2022, reflecting the confidence in the market by businesses, investors, and all stakeholders, a report from Commercial Real Estate Consultants (CRC) has found. The economic reforms such as 100% foreign ownership, ever-evolving visas initiatives, and the efficient management

August 2022 | MEConstructionNews.com

of the pandemic have been instrumental in creating buoyancy in the commercial sector. H1 2022 witnessed an 89% increase in sales value and a 38% increase in units transacted compared to H1 2021. Offices recorded a 19% increase, while retail sales saw the highest rise by 64% compared to last year. As Dubai returned to normal, CRC recorded a significant rise in demand for commercial sales, with leads for offices up by 152%, warehouses up 139%, labour camp up 291%, and retail up by an astounding 674% compared to H1 last year. Highlight the sheer growth in demand for commercial properties and the trust in the current market. According to CRC data, leasing transactions decreased by 1% for H1 2022 over H1 2021. However, the warehouse sector witnessed the highest growth at 142%, as businesses are growing as well as e-commerce setups needing more prominent storage places. Across all sectors, commercial leasing

leads rose by 180% for warehouses, 136% for retail, and 114% for office spaces. Business Bay and Jumeirah Lake Towers continue to attract enterprises and record the highest office sales transactions for H1 2022, followed by Emirates Living, Barsha Heights (Tecom), and Dubai Silicon Oasis. For retail sales, the top areas were International City, Jumeirah Lake Towers, and Business Bay. Many companies relocated their operations and employees from Eastern Europe and Russia to the UAE. While global companies, such as Meta and Visa, chose Dubai to branch out their business activities, mirrored in the significant rise in new license registrations compared to renewals. Overall, the demand for Dubai’s commercial properties will continue to thrive as many businesses return to normal operations, and new entrants head to Dubai to explore new markets and business opportunities.

MARKET REPORT

DLD TRANSACTIONS BY PROPERTY TYPE H1 2021

H1 2022

1000

2.0M

750

1.5M

500

1.0M

250

0.5M Retail

Offices

Retail Transacted Value

Offices Transacted Value

TOP 5 DLD OFFICE SALE TRANSACTIONS LOCATIONS, H1 2022 Business Bay Jumeirah Lakes Towers Emirates Living Barsha Heights (Tecom) Dubai Silicon Oasis

500

400

300

200

100

TOP 5 DLD RETAIL SALE TRANSACTIONS LOCATIONS, H1 2022 International City Jumeirah Lakes Towers Business Bay MBR City Jumeirah Village Circle

OFFICES

WAREHOUSES

150

120

AVERAGE RENTAL PRICE, H1 2022 (PRICE/SQ FT)

Business Bay

AED 113

RETAIL

Business Bay

AED 99

150

100

Dubai Media City

Al Quoz

AED 121

AED 51

Source: CRC, Property Monitor

Jumeirah Lake Towers

AED 110 Jumeirah Lake Towers

AED 76

Dubai Investment Park

AED 19

Dubai Industrial Park JLT

Business Bay

Media City

Barsha Heights

AED 22

MEConstructionNews.com | August 2022

ANALYSIS

Sustainability

Building a Greener HVAC Industry MIDDLE EAST

Varun Malhotra, senior consultant at Cundall, shares his thoughts on sustainable trends in the HVAC industry

s the world is accelerating the transition to Net Zero, sustainability has also been the driving force in the Heating, Ventilation and Air Conditioning (HVAC) industry. Despite its challenges, sustainable HVAC has finally grown within August 2022 | MEConstructionNews.com

reach thanks to energy efficient and low emission technology. Countries in the MENA region are very vulnerable to the impact of climate change, as they are naturally affected by harsh climate conditions and extremely high temperatures. The International Monetary Fund and World Health Organisation have both identified MENA as one of the most impacted regions, with acute risks to public health from heat effects. For most buildings HVAC, therefore, is no longer an optional luxury, but a must have, and climate change effects are already boosting the market’s growth yearon-year in the Middle East. In response to the twin dilemma of the growing need for cooling and the imperative to reduce energyrelated carbon emissions, the HVAC

industry has aligned itself with the global decarbonisation trajectory. The potential benefits are substantial. The International Energy Agency, for example, has estimated that climate-friendly, energy-efficient cooling technology could reduce global greenhouse gas emissions by up to 460 billion tonnes over the next four decades. Doubling the energy efficiency of equipment by 2050 would also enable the world to meet the growing demand for cooling, while avoiding the need to generate an additional 1,300GW of electricity and save on the costs associated with generation and distribution. Coinciding with this, government agencies are setting stricter energy performance standards and making sustainable HVAC compulsory. This

50% By using green energy sources, consumers can reduce energy consumption by up to as much as 50%

ANALYSIS

hour before returning home from work, so that instead of coming home and turning it on at highest level to quickly cool down a hot room/home, it can be set to a more energy-efficient level. Energy analysis software programs are also emerging, enabling users to identify energy solutions and reduce utility costs by helping identify and prevent energy wastage, and also to optimise equipment operation times to coincide with peak supply from any onsite renewables.

The International Energy Agency has estimated that climate-friendly, energy-efficient cooling technology could reduce global greenhouse gas emissions by up to 460bn tonnes over the next four decades” includes the developing nations where regulations accompanying the acceleration of cooling equipment uptake are also encompassing a transition in technology to reduce, if not eliminate, the use of fossil fuels to reduce their carbon footprint. The industry is also slowly shifting the perception that new, energyefficient technologies are expensive and out of reach, and consumers are now catching on to the benefits of sustainable HVAC. The value proposition of increasing comfort while making significant saving on energy bills and maintenance costs is very clear, and advances in equipment coming onto the market are breaking through the performance ceiling in relation to affordable cooling capability at a reasonable energy cost. Here are some of the most promising sustainable HVAC trends:

STRICTER EFFICIENCY STANDARDS

INCREASED AUTOMATION AND ENERGY MONITORING

The rise of automation is shaping all industries, from marketing and IT to HVAC. Programmable thermostats, for example, enable users to automate temperature monitoring. More advanced HVAC systems can be used along with smart home controllers and building management systems, even detecting and fixing technical issues without human intervention. This technology allows users to operate their heating and cooling units remotely. For example, remote operation enables the use of pre-cooling for an

The rise of automation Increased automation will allow for more advanced HVAC systems to be used, Varun Malhotra says.

Growth market The Middle East and African HVAC market is projected to generate revenues of $10.1 billion by 2024.

This is another piece of great news for both consumer utility bills and the planet. The minimum efficiency ratings for HVAC systems are now changing and are expected to increase over the coming years. Globally, manufacturers are conducting a significant amount of research to develop products that help building operators and owners meet the energy efficiency criteria, reducing their carbon emissions and energy consumption. As the Middle East and Africa’s HVAC market is projected to generate a revenue of $10.1 billion by 2024, the adoption of sustainable HVAC systems is a welcome trend that is being observed across the region. This article first appeared on Big Project ME's sister publication: www.meconstructionnews.com

ADOPTING GREEN ENERGY

Conventionally, HVAC accounts for more than a third of a building’s operational carbon footprint. Leading players are introducing products that rely on alternate sources of energy including renewable energy to help in reducing dependence on traditional fossil fuel-reliant energy resources. With the use of green energy sources, consumers can reduce energy consumption by 25% to 50% . MEConstructionNews.com | August 2022

ANALYSIS

Economics

The Growing Influence of the GCC

MIDDLE EAST

David Clifton, regional director – Faithful + Gould, an SNC-Lavalin Company, looks at how current regional geopolitics will impact the UAE economy and how that will affect the country’s real estate and construction landscape August 2022 | MEConstructionNews.com

ith UAE and KSA the only nations that can realistically up production in the OPEC and OPEC+ group, what does that mean for their economies post the Arab summit attended by them, Joe Biden, and the leaders of Egypt and Jordan? We know that KSA’s maximum output is circa 13 million barrels per day (bpd) and UAE c.3.7 million bpd and they are currently producing at a level of 11.4 million and 3.2 million respectively. This is a lower level from KSA, as it can typically deliver 12.4 million bpd (in line with OPEC+ agreements). With $732 million and $185 million per day as extra revenues since the oil price spike, the questions remain, why pump more? What is in it for these countries, and what do they get in return? Looking at local and regional issues, we see that in recent years, both the UAE

and Saudi Arabia are politically becoming incrementally more powerful globally. The UAE in particular is very well placed to maximise not just its influence, but also its view that post-pandemic infrastructure stimulus and direct economic investment will drive the current economy and encourage future economic growth. When we look at the development and construction sector, we can see that whilst the anecdote of all roads lead to Saudi Arabia that has existed in the last five years is broadly true, we are seeing a trickle-back effect to the UAE, primarily Abu Dhabi. There is a significant pipeline of opportunity within the Emirate that is being developed by government and sovereign wealth fund (SWF) derived investments. This has great potential to start the recovery for the industry. Although it should still be added that UAE is still a place where we have too many contractors and not enough work,

Driving growth The UAE, and Abu Dhabi in particular, believes that post-pandemic infrastructure stimulus and direct investment will drive future economic growth.

3.7m Current number of barrels being produced by UAE per day

ANALYSIS

FIGURE 1: MAIN CONTRACT AWARDS VS. COMPLETIONS ($ BILLIONS), 2012-2021 CONTRACT AWARDS CONTRACT COMPLETIONS $60.0

$30.0

$0.0

-$30.0

-$60.0

2012

2013

2014

whereas the reverse is becoming truer by the day in Saudi Arabia. So, what is next for UAE? We’ve already seen the commitment for the development of passenger rail from Etihad Rail, the continued community developments by ALDAR and commitments from other ADQ (or related) companies such as KIZAD, MODON and TAQA to deliver ground-breaking schemes that align to Abu Dhabi 2030, Net Zero and the government’s strategic objectives to diversify the economy and support to citizens and residents. We also see a pre-contract pipeline of work that is worth $232 billion for the next two years in UAE. This is highly unlikely, but the fact it exists is a positive. It should be expected that we can expect a managed return to growth. With the centralisation of development around a small group of entities, we would expect to see a levelling of projects to market. A compound annual growth

2015

2030

The Abu Dhabi Economic Vision 2030 aims to build a sustainable and diversified, high valueadded economy by 2030

2016

2017

2018

2019

rate (CAGR) of c.4-5% is reasonable, but dependent on an approval process that hasn’t been tested to its fullest as yet. The need to stimulate this area of the economy is significant if UAE is to capitalise on outgrowing its competitors and also continue its ascension to a major player. All while supporting an industry that represents nearly 8% of GDP, 15% of the population and 13% of the wages paid in the country. We are also seeing a view to diversify the funding models for the schemes we see in the pipeline. On face value, this is sound logic (think back to being a graduate and trying to get a loan versus having money and not necessarily needing one), the challenge of the PPP offices in Dubai and Abu Dhabi is to develop the guarantees that are needed outside of IWP / IWPP / IPP and renewables to ensure a suitable level of attraction. This is especially important given the flight from equities and funding to bongs

2020

as we see central back interest rates rise (and they will rise a significant level more). With the US dollar strengthening over and above fair value, for the GCC, this should mean acceptable inflation at most levels compared to the rest of the world. When we look at construction, we’ve seen an 8% regional spike in inflation this year (average) driven by geopolitics (war), materials price spikes (war and fear) and in Saudi Arabia, the assumption that the industry is currently or shortly to be overloaded. However, some relief will occur due to imports not being a fair value and thus trading at an historical discount. Even when factoring shipping cost increases. In effect, with UAE and indeed KSA having a greater geopolitical sway in the international community, it is reasonable to expect increased countrywide investment as governments look to shore up their infrastructure and keep the countries attractive for FDI, talent and visitors alike.

FIGURE 2: UNITED ARAB EMIRATES GDP, 2012-2024 % GROWTH RATE UPPER LEVEL LOWER LEVEL

$ BILLIONS

2021

TRENDLINE

$480

20%

$360

10%

$240

$120

-10%

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2019

2020

2021

-20%

MEConstructionNews.com | August 2022

DUBAI / UAE

Celebrating the projects, teams, and individuals supporting innovation and technology in the built environment. 25 October 2022

About

Judged

The Event Winning an inaugural ME Digital Construction Award will be a recognised badge of excellence amongst your clients and peers. These awards celebrate the technology champions who have played a key role in the digitalisation of the construction industry, which is at the heart of the GCC economy. These awards celebrate the companies, organisations and solutions providers whose construction technology solutions lead the way – whose outof-the-box innovations deliver critical commercial ‘edge’, day in, day out. They honour the achievements of the key players responsible for the industry’s

By Professionals dramatic post-Covid re-set, which has seen digitalisation become a pillar of the industry. The inaugural ME Digital Construction Awards is brought to you by Big Project ME, one of the leading trade titles in the region. To ensure complete objectivity, the Awards are judged by a mixture of public votes and a specially recruited judging panel; they are influenced by one criteria only – the informed decision that they are truly the bestin-class. We look forward to honouring your business.

Built around the concept of transparency and clarity, the awards are decided upon by an independent panel of judges from across the spectrum of the industry. The editorial team take considerable efforts to ensure that nominees are assessed by the appropriate experts who have a chance to assess nominations both individually, and in a group discussion. This ensures that winners are chosen on the basis of the work they do over the course of the year, and on the reputations, they develop within the industry. At CPI Trade Media, we are proud to state that our awards are unbiased, transparent and fair, with no external influences on the decision-making process.

Get in touch

Award Nomination Enquiries

Table Booking & Sponsorship

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

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

Raed Kaedbey | +971 4 375 5715 raed.kaedbey@cpitrademedia.com

Date

25 Oct

Venue

Dubai

Website

medigitalconstructionawards.com

Nominate

now The

Categories Excellence in Digital Planning and Design

Digital Construction

Big Project ME’s Technology

Digital Construction

Net-Zero Technology

Digital Construction

Digital Collaboration

Digital Construction

Digital

Implementation for the Year

Technology Provider of the Year (Hardware)

Project of the Year

Technology SME of the Year

Champion of the Year

Innovator of the Year

Company of the Year (Contractor)

Champion of the Year

Company of the Year (Consultant)

Champion for the Year

Technology Provider of the Year (Software)

Visionary of the Year

2022

Event Partners SUPPORTING PARTNER

SUPPORTING PARTNER

PRESENTED BY

IN PROFILE

Dar Al Arkan

Aggressive Expansion ZIAD EL CHAAR, VICE CHAIRMAN OF DAR AL ARKAN, TELLS BIG PROJECT ME THAT THE SUCCESSFUL FIRST HALF OF 2022 IS JUST THE BEGINNING FOR THE SAUDI ARABIAN REAL ESTATE GIANT AS PLOTS REGIONAL AND INTERNATIONAL DOMINANCE

October2022 August 2021| |MEConstructionNews.com MEConstructionNews.com

MEConstructionNews.com | August 2022

IN PROFILE

y any measure, the year 2022 has been a mammoth one for Dar Al Arkan, the Saudi Arabian real estate developer. The first eight months of the year has seen the Kingdom’s largest listed developer achieve more than most companies would in five years, with a range of projects, announcements and partnerships confirmed as part of its ambitious strategic expansion plan – both regionally and internationally. At the start of the year, the developer announced that it had agreed a strategic partnership with Compass Project Consulting, which has since grown into the acquisition of an undisclosed majority stake in the Dubai-based project consultancy firm. In February, Dar Al Arkan opened its first office in Beijing, China – a move that is in line with its strategic expansion and will allow it to promote cooperation and partnerships within the real estate and technology sectors to exchange and implement global

August 2022 | MEConstructionNews.com

Going global The first half of 2022 has seen Dar Al Arkan launch several major projects in new international markets.

$8.5bn Value of Dar Al Arkan’s asset portfolio

best practices in these respective industries. Furthermore, the office allows the company to develop joint ventures with its Chinese counterparts for both the Chinese and Saudi markets, thus enhancing investment and knowledge sharing opportunities. In March, the developer announced a deal with Oman Tourism Development Company (OMRAN Group), to develop AIDA, which is regarded as one of the largest premium mixed-use real estate projects in the Sultanate of Oman. This project marks Dar Al Arkan’s first entry into the country and is set to be a key part of Oman Vision 2040.

Also in March, the company launched its first project in Qatar, the Les Vagues residences by Elie Saab, which is being developed in collaboration with Qetaifan Projects. All of these significant moves were being carried out with ongoing work on its Dubai-based projects, including its very first project outside Saudi Arabia – the $218 million Urban Oasis by Missoni residential project in Business Bay. Construction work also began on its $272 million W Residences Dubai, while significant progress has been made on its $217 million DaVinci Residential Tower, which is being built in partnership with Italian hyper car manufacturer, Pagani Automobiles. Rounding out this list of enviable achievements is its first European luxury residential project – Sidra, a $133 million, 500,000sqm exclusive vacation and housing development in Bosnia. On top of all these project announcements, on June 30, 2022, Dar Al Arkan sold a $400 million, three-year Sukuk, with Bahrain’s GFH Financial Group acting as a joint lead manager, alongside other parties. The sukuk has been met with strong demand from both regional and international investors and is the 12th issuance for the Saudi developer till date. With a portfolio of assets valued at more than $8.5 billion, the developer says that the issuance will be used to

IN PROFILE

We have an aggressive expansion plan both inside and outside Saudi Arabia, but inside the Kingdom will always be bigger in proportion, because as a real estate developer, our strength is in our home market” further support its development goals and pipeline of world-class projects. “We have a strategy of expansion for inside Saudi Arabia and a strategy of expansion outside Saudi Arabia,” Ziad El Chaar, vice chairman of Dar Al Arkan, tells Big Project ME during an interview at Urban Oasis by Missoni, the developer’s first nonSaudi-based project. “We’re actually being motivated by the Ministry of Investment and the Ministry of Tourism in Saudi Arabia to go outside KSA and do projects, and to plant the Saudi flag in the cities that we’re operating in, so as to show that there are many successful companies

in the Kingdom, who can cross borders and continue their success – be in Dubai, in Muscat, in Doha, in London, in Spain, or in China.” “Dar Al Arkan is one of the few companies that has around $8.5 billion in assets, which shows how solid the company is in terms of asset base. Out of this, approximately $798 million is free cash, which gives us the ability to look for opportunities to deploy that free cash on projects that have good IIR and a good return on equity in our target markets,” El Chaar states. He adds that the impressive financial results registered by the company in 2022 (the developer saw a

Specialised focus Dar Al Arkan has made the strategic decision to focus on the residential sector of the real estate market.

Sea-front residences at Les Vagues

675% profit spike in Q1 due to higher sales) is due to the timely completion of projects. He points out that Dar Al Arkan has been working very aggressively over the last year on a number of projects – mainly in Saudi – and that their ongoing completions will continue to have a positive financial impact on the company’s position. “Our speciality has always been residential and specialised residentials, which could be serviced apartments, co-living projects, etc. We believe that if you want to continue your success, then you should continue in your speciality and grow it. Globally, we’re increasingly seeing deeper specialisation. You cannot be a jack of all trades in real estate – you will fail in some categories. “We have an aggressive expansion plan both inside and outside Saudi Arabia, but inside the Kingdom will always be bigger in proportion, because as a real estate developer, our strength is in our home market. We are expanding outside of Saudi because we have a very large customer base and very wide distribution channels, with many associations with a large number of brokers, so we’re basically developing these projects for our customer base,” El Chaar says. He adds that having been established in 1994 and having delivered thousands of units in Saudi Arabia alone, he and his team at Dar Al Arkan

MEConstructionNews.com | August 2022

IN PROFILE

have developed a strong sense of what projects appeal to their customer base. “Most of the people working in the company used to work for other developers who tried to expand beyond their hometown and failed. We’ve learnt their lessons and learnt what to do and what not to do. For example, we will never expand outside of Saudi and go into first homes. [That’s because] in every market, you have very experienced and aggressive developers who would be better than you in developing first homes for that city, so do go competing with them. “That’s why we always go into the second homes or vacation homes markets. We have a clear strategy for that expansion. Inside Saudi Arabia, we’re collaborating with a lot of the governmental companies, especially the PIF companies, to develop portions of their big masterplans.” This is one of the reasons why the developer decided to acquire a stake in Compass Project Consulting. El Chaar explains that there is a twofold rationale behind the decision – one is that it provides an entry into the fast-growing project management segment, and secondly, it will strengthen the armoury of the real estate giant as it looks to bid for the Kingdom’s upcoming megaprojects as a project consultant. “We used to do our own project management, our own value

August 2022 | MEConstructionNews.com

We’re actually being motivated by the Ministry of Investment and the Ministry of Tourism in Saudi Arabia to go outside KSA and do projects, and to plant the Saudi flag in the cities that we’re operating in” Bringing expertise Dar Al Arkan will bring its expertise as a developer to bear when working alongside its partners and joint ventures, El Chaar says.

347

Total units in the Da Vinci Tower

engineering, and we have a lot of expertise there as a developer. We saw that many other project management companies because they are not coming from a development perspective, don’t have the same strength that we are able to convey in project management, value engineering or design review. [That’s why] we thought that there was a clear commercial opportunity to get into this business,” he explains. “We now have Compass Dubai and Compass Saudi Arabia and we’re inputting a lot of real estate development experience into the projects that we are project managing, while at the same time, Compass

will benefit from the projects that Dar Al Arkan will eventually do.” El Chaar points out that one of the objectives of Vision 2030 is to motivate Saudi companies to take on initiatives into sustainability and modern construction, and that the acquisition and partnership with Compass Project Consulting will help push Dar Al Arkan forwards in that regard. This is also why the developer is taking a small step forward into the construction technology sphere, with the establishment of a subsidiary – Dar Al Arkan Construction Technology – which will carry out research and development.

IN PROFILE

“It will benefit us in the future, that’s why we’ve opened it – to see if we can succeed in this area. But most of it is still in the research and development phase. I hope in time, we’ll be able to crack it and present viable construction methodologies that will assist in the attainment of the targets of Vision 2030.” He adds that the developer is working with three companies – two in China and one in Denmark – to design villas and build them using 3D printing technology. This will not only have significant sustainability gains but will also allow the team at Dar Al Arkan Construction Technology to test new materials that will allow for major gains in efficiency and energy usage. Finally, El Chaar points out that despite the successful first half to the year, there is still plenty of work and adaption to come for the developer. He attributes the accomplishments to sound financial planning by the company’s leadership, explaining that care has to be taken to ensure that investments aren’t left exposed. “You need to make sure that if there’s a slowdown in the areas that we’re operating in, that we don’t get exposed, because eventually, the cash flow that is coming from the projects will be a little weaker. That’s why financial planning is the first thing that we do. We select projects that do not require heavy equity from Day

One, and we will continue to look at these types of projects till we see that there is some stabilisation around us and that we have weathered the current storm that (we’re facing). “We are also watching construction costs very carefully, versus the prices that we have. With oil prices up and inflation up, you would expect material prices to also rise. We’re also watching construction costs very carefully, considering the prices that are prevailing today. This is so that when we award a contract six months from today, we know what to expect prices to be. In fact, we have already factored in some increases

2032

Dar Al Arkan aims to be in the top 20 listed developers in the world within 10 years

in prices for projects that will be awarded as of September 2022! “We did not jump into the real estate industry because there was growth in the industry. we’ve been in the industry for the last 28 years and hope to be here for another successful 28 years and beyond. “We believe in this sector, it’s a vital sector,” he asserts. “It will go through ups and downs like any other sector, and we will maintain our position. [In fact], we have a target that 10 years from today, in the year 2032, we want to be among the top 20 real estate developers – listed – outside China,” El Chaar concludes.

MEConstructionNews.com | August 2022

THE OBEROI / DUBAI / UAE

Digital construction tools to improve delivery and operations in the smart build environment 14 Sept 2022

About the

Digital Construction Summit

Our

Welcome to the evolved, dynamic, and rebranded Digital Construction Summit, formerly the ME BIM Summit, which will take place in September 2022. A host of highly curated panel discussions, seminars, workshops, an interactive exhibition and networking activities will be put together to connect leading minds to examine the ongoing evolution of the construction industry in the middle east.

Our mission as the media arm of the industry is to continue the education, process and support of digitisation by creating a network filled with informative content and knowledge.

Over the last nine years, the ME BIM Summit has grown from strength to strength and as the digital transformation of the regional construction industry continues to gather pace, the scope of the event has grown beyond BIM and embraced all aspects of the digital construction journey.

We want to connect the minds from aspiring students all the way to the leaders in position today and to equip the decision makers of tomorrow with how all the digital tools available will help the built environment.

Mission

Equipping the

Future Leaders

In the wake of the pandemic, construction firms have awoken to the true power of digitalisation and are now heavily investing in technology to speed up their transformations into industry powerhouses of the future. We want to facilitate and energise this conversation, to help create a better, more inclusive, and adaptive smarter construction eco-system.

Participation

Get in touch

Participate by exhibiting, creating a workshop, join a panel discussion or run a demonstration – whichever way – it’s a lucrative platform to get connected. Contact us now to learn more about this opportunity to interact and connect with regional industry decision makers and influencers.

Content

Opportunity

Sponsorship Jude Slann | +971 4 375 5714 jude.slann@cpitrademedia.com Raed Kaedbey | +971 4 375 5715 raed.kaedbey@cpitrademedia.com

Date

Venue

14 Sept

The Oberoi

Website

2022.digitalconstructionsummit.com

Complimentary

2022

Agenda

Connecting

We believe content empowers us and our speakers seek to provoke insightful debate and shed light on current trends, challenges and solutions.

Connecting young minds, innovators and entrepreneurs to the principles and leading minds within the current built environment ensuring equal understanding throughout the chain.

Investment

Knowledge

Across the Board

and Expertise

The importance of funding and investment in technology and digital tools through start-ups, SMEs, enterprise and government level.

Knowledge and expertise sharing are vital for success across an industry; discussing challenges and experiences that can be overcome in the future with digital adoption, education and new normal ways of working.

Tomorrows leaders

Future

Power In the wake of the pandemic, construction firms have awoken to the true power of digitalisation and are now heavily investing in technology to speed up their transformations into industry powerhouses of the future.

2022

Event Partners GOLD SPONSOR

SILVER SPONSOR

BRONZE SPONSOR

TECHNICAL SPONSOR

PRESENTED BY

| MEConstructionNews.com | MEConstructionNews.com September August 20222021

PROJECT PROFILE

Rosewood Doha PROJECT NAME: Rosewood Doha PROJECT LOCATION: Lusail City, Doha, Qatar CLIENT: Arkaz Investment DESIGNER AND STRUCTURAL ENGINEER: Arab Engineering Bureau PROJECT VALUE: $411.9 million BUILT-UP AREA: 152,684sqm TOTAL AREA: 23,173sqm

Delivering Quality ARAB ENGINEERING BUREAU EXPLAINS HOW THEY UTILISED BENTLEY SYSTEM’S RAM CONCEPT TO DELIVER THE ULTRA-LUXURIOUS ROSEWOOD DOHA, A PROJECT THAT IS SET TO REDEFINE QATAR’S HIGH-END HOSPITALITY LANDSCAPE MEConstructionNews.com | August 2022 2021

PROJECT PROFILE

ocated within the $45 billion Lusail City development spanning 38 square kilometres across four islands, Rosewood Doha is the Middle East’s new ultra-luxury destination. The development is comprised of two iconic towers linked at the base by a three-level podium, reaching a built-up area of 152,684 square meters. The 40-storey residential tower will house 300 apartments, promising to deliver the pinnacle of luxury living in Qatar, with a range of bespoke amenities and services. The 37-storey hotel tower will feature 154 hotel rooms and 161 apartment suites, along with a rooftop terrace, restaurants, and eateries poised to provide a dynamic culinary experience. Both towers stand on a rectangular base, turned perpendicular to one another, allowing maximum exposure to the water and marina views. Rosewood’s design was inspired by local underwater coral formations, showcasing an organic architectural approach aimed at respecting the site and its surrounding Arabian Gulf waters while promoting harmony between human habitation and nature. “Rosewood Doha and Rosewood Residences Doha will create a new and differentiated benchmark for ultra-luxury hospitality in the region,” says Sonia Cheng, Rosewood CEO. Arab Engineering Bureau (AEB) conceptualised the design and is responsible for structural engineering through to construction to realize their innovative development concept. With curvilinear cladding for the podium that complements the organic façade of the towers and gives the impression of two corals, the striking architecture will make the building a city landmark. In order to achieve the client’s brief, AEB needed skill and creativity to bring the design to life. August 2022 | MEConstructionNews.com

One of the client’s requirements was to keep the project on a tight budget and the structural system is a cantilever slab on four corners. Designing such a slab system would be difficult and challenging”

PROJECT PROFILE

Project Objectives:

Rosewood Doha

• To provide structural engineering solutions supporting an organic architectural concept. • To design a post-tension steel slab system, meeting the aesthetics requirements and project budget.

Project Playbook:

RAM Concept

Fast Facts • The $411.9 million Rosewood Doha project is set to redefine luxury living in the Middle East. • The organic architectural concept presented structural design challenges amid a tight budget. • AEB used RAM Concept to evaluate their post-tension steel structural slab system to meet the architectural requirements and budget, while ensuring structural integrity. ROI • RAM Concept improved efficiencies by 20% to 30% when designing the post-tension steel structural system. • The solution reduced slab thickness, saving 25% in concrete volume and 20% to 30% in costs. • AEB’s structural design contributes to Doha Rosewood achieving a 4-star GSAS sustainability rating.

MEConstructionNews.com | August 2022

SUPPORTING AN ORGANIC ARCHITECTURAL DESIGN CONCEPT To support the Rosewood’s organic architectural design concept, AEB faced structural engineering challenges that included designing a cantilever slab support system on four corners amid a tight project budget. “One of the client’s requirements was to keep the project on a tight budget and the structural system is a cantilever slab on four corners. Designing such a slab system would be difficult and challenging,”

August 2022 | MEConstructionNews.com

explains Ibrahim Jaidah, chief architect and GCEO, AEB. The design team wanted to use a post-tension steel slab as opposed to a conventional flat concrete slab system to meet the cost constraints while creating column-free spaces to create open floor plans. Designing such a structural system required them to consider the complete geometry of the towers and podium, including column and beam sizes and locations, slab thickness, and concrete dimensions,

Comprehensive technology To ensure accurate calculations for optimal structural integrity, AEB required comprehensive, customisable structural design technology.

3,000

Total number of apartments

as well as analyse design loads, stress, deflection, and tendon layout. To ensure accurate calculations for optimal structural integrity while meeting the architectural requirements, AEB required comprehensive, customisable structural design technology. DESIGNING THE OPTIMAL STRUCTURAL SYSTEM In order to achieve their requirements, AEB selected RAM Concept, as its large variety of design codes and design capabilities could easily cover all aspects of the flooring system. “Using RAM Concept for structural design includes the availability of a large variety of design codes and it is a highly customisable software that contains design tools to cover all aspects of the flooring system,” says Jaidah. Using Bentley’s structural engineering application, AEB modelled and analysed both towers and considered all loads from an architectural and multidiscipline design perspective. This analysis determined the optimal outputs and tendon layout for all post-tension floor slabs. They also used the software to determine the slab thickness with the reinforcements, applying varying loads and producing conceptual structural drawings based on the architectural layout. The interoperability and automated features of RAM Concept enabled AEB to work with different disciplines and easily modify the model to incorporate changes and digitally represent

PROJECT PROFILE

Using RAM Concept for structural design includes the availability of a large variety of design codes and it is a highly customisable software that contains design tools to cover all aspects of the flooring system”

the actual condition of the slab. Through accurate modelling and analysis, they eliminated all beams, reducing the height between floors, creating more space above and below the ceiling for mechanical and electrical equipment, and adding additional rooms and apartments within the same overall tower height. “In this project, we eliminated all beams. RAM Concept’s features give us the accurate punching shear stress and accurate deflection that allowed us to accurately simulate the slab and modify the tendon layout,” Mohamed Mosallam, lead structural engineer at AEB, points out. DRIVING SAVINGS AND SUSTAINABILITY THROUGH ADVANCED TECHNOLOGY Compared to other structural engineering software, RAM Concept provided an interoperable, userfriendly interface capable of delivering an optimal structural design solution, Mosallam says. “The main key features and advantages of the punching shear stresses, tendon layout, and [capability to] export the tendon layout are features not available in other software,” he adds. By accurately modelling and analysing the post-tension steel slab system using the application, AEB was

able to determine that increasing the tendon layout in specific locations reduced the concrete slab thickness and enabled them to eliminate the beams. This steel structural support solution reduced the concrete volume by 25%, saving 20% to 30% in costs. The use of the technology simplified and automated previously manual tasks, saving AEB 20% to 30% in resource hours and helping them complete the structural engineering work ahead of schedule, the firm says. Using the posttension technique and RAM Concept led to a significant reduction

Simplified tasks The use of technology simplified and automated previously manual tasks, saving AEB 20% to 30% in resource hours.

161

Total number of apartment suites

in the design and construction processes for both towers. “Comparing this process with any other structural software, we highly recommend RAM Concept to complete the design with the highest level of accuracy,” says Mosallam. The post-tension steel structural design not only improves structural durability and reduces maintenance costs, but it also plays a vital role in achieving the sustainability requirements of the building, which is targeted at a 4-star Global Sustainability Assessment System (GSAS) rating, he highlights in conclusion.

MEConstructionNews.com | August 2022

EXPERT VOICE

Black & Veatch

Realising Green Hydrogen’s Potential MIDDLE EAST

Youssef Merjaneh, Managing Director of Black & Veatch EMEA, looks at the type of projects that will foster MENA’s hydrogen economy August 2022 | MEConstructionNews.com

reen hydrogen can be used as a zero-carbon fuel, feedstock and energy carrier, and for energy storage. As the world races to combat climate change and transform its energy systems, green hydrogen has a prominent role in decarbonisation strategies across the Middle East and North Africa (MENA). MENA countries pledged and budgeted more than US $105 billion toward hydrogen projects and infrastructure, according to business intelligence channel MEED; whose analysis concluded that green hydrogen was attracting the highest level of project funding compared to other decarbonisation categories. CREATING GREEN HYDROGEN

Any form of renewable energy can power green hydrogen electrolysis – the process which splits water into

hydrogen and oxygen. Solar is MENA’s most common renewable energy source, but wind also has a role to play. In addition to renewable electric power, an abundant water supply is essential for green hydrogen production. The quantity of water consumed differs depending on the application, but roughly 9,800 litres of demineralised and deionised water is required for each tonne of green hydrogen produced. As a global engineering, procurement, consulting, and construction company, Black & Veatch serves multiple markets that encompass the hydrogen value chain. We have strong experience in the development of renewable energy and natural gas feedstocks; water treatment for industrial applications; hydrogen generation and purification; hydrogen compression, handling and power generation; and selection of cost-effective storage technology. Our

FOR MORE INFORMATION Please visit the Black & Veatch website at: www.bv.com consultants bring strategic, regulatory and market experience to evaluate and support the sequenced growth of regional hydrogen economies. Black & Veatch is currently building 245 megawatts (MW) of electrolysis capacity across two projects, both scheduled to go commercial before 2025. To put that number in perspective, we are nearly doubling the world’s electrolysis capacity with our engineer, procure, construct (EPC) projects. Our current hydrogen EPC projects include the world’s largest green hydrogen production and storage hub. The ACES-Delta, a joint venture comprised of Mitsubishi Power and Magnum Development, hydrogen hub will initially be designed to convert more than 220 MW of renewable energy daily to 100 tonnes of green hydrogen that will be stored in two expansive salt caverns. The project is located in Delta, Utah, USA. Storing excess renewable energy as hydrogen in this manner yields a long-term and long-duration energy storage solution, complementing battery energy storage solutions, while allowing renewable energy to be deployed in times of highest demand. With hydrogen storage solutions, developers will be able to accommodate and optimise seasonal shifts of excess renewable energy. Black & Veatch will engineer, procure, construct, start-up and commission the facility. Mitsubishi Power will provide the hydrogen equipment integration, including the 220 MW of electrolysers. The hydrogen storage hub is adjacent to the Intermountain Power Agency’s (IPA) IPP Renewal Project, an 840-MW, hydrogen-capable gas turbine combined cycle power plant. With construction beginning in Spring 2022, the ACES facility will enable operations at that power plant as it scales up from its initial 30% hydrogen fuel to an eventual 100%. GREEN HYDROGEN FOR CCGT PLANTS

Black & Veatch is the owner’s engineer on the IPP Renewal Project, which marks one of the earliest installations of combustion turbine technology designed to use a high percentage of green hydrogen. The plant will generate power with high flexibility that will allow it to

quickly ramp up and down in response to California’s challenging ‘duck curve,’ where the region’s high ratio of variable renewable energy presents challenges for stable grid operations. Whether dispatched for base load power, to follow load and renewable generation swings, or in response to long-duration energy storage needs that far exceed current battery capabilities, the IPP Renewal Project will support the transforming energy mix in the western United States. We are undertaking the EPC role on a smaller but similar project, which will use green hydrogen blended with natural gas to fuel an existing combined cycle plant. The first-of-a-kind 25-MW green hydrogen production facility incorporates Cummins electrolysers, with production targeted for 2024. The hydrogen will be blended with natural gas and supplied to the owner’s existing combined cycle combustion turbine power plant.

Long-term results The ACES-Delta project provides long-term hydrogen storage in salt caverns.

$105b MENA countries have pledged more than US$105 billion toward hydrogen projects

GREEN AMMONIA PRODUCTION IN THE MIDDLE EAST

There is significant potential for green ammonia as a transportable and tradeable zero-carbon fuel, particularly for exporters in the Middle East. As

Black & Veatch is nearly doubling the world’s electrolysis capacity with its current EPC projects, says Youssef Merjaneh.

the global green hydrogen economy evolves and demand in Europe and Asia grows for the importation of green ammonia, as an energy carrier of hydrogen, we will see developers across the region explore hybrid green ammonia and LNG infrastructure synergies, and start planning their transition into this expanding zerocarbon export opportunity. Black & Veatch was engaged to develop a feasibility study report for a proposed 300 ton per day ammonia plant based on green hydrogen to be set up in the Middle East. Following the successful completion of the feasibility study, Black & Veatch was appointed to conceptualise the complete project including providing support for electrolyser selection and finalisation. The company is also undertaking studies of this kind for green hydrogen/green ammonia project in Europe, the USA and Asia Pacific. Green hydrogen production is a complex and rapidly evolving process while the global energy community is still working through and discovering the most efficient, effective and sustainable application of this zero-carbon energy source. To succeed in this environment, hydrogen project developers and investors need confidence in the quality of the planning, engineering and construction support they receive alongside a clear understanding of the technologies’ roadmaps, maturities, and commercial viabilities, and thereby avoid the risks and consequences of getting locked into path dependencies. We believe the most effective support will come from partners with expertise in hydrogen, renewable energy generation, water and wastewater treatment and the complex interfaces between these elements which define hydrogen projects – many of which are first-of-a-kind in terms of technology and location. In addition to capabilities and expertise in all these different areas, Black & Veatch’s strength includes managing and integrating multiple technologies in a project to provide a complete solution. To ensure the equipment selections best aligned with projects’ commercial goals, the value of a technology agnostic partner cannot be overstated. MEConstructionNews.com | August 2022

COMMENT

Industry insight

CHANDRA DAKE DAKE GROUP

Sustainable development finds an admirer in Dubai 2040 Master Plan

ay back in 1960, the Emirate of Dubai started modernising and planning for its future with an emphasis on urban development and related infrastructure. Since then, the city has come up with six editions of the Urban Master Plan. And now, the Dubai 2040 Urban Master Plan, the seventh such plan, has been formulated. The plan promises to further improve the city’s quality of life and make it an easy space to live in, with sustainability and protection of the environment as focus points. For starters, Dubai’s initiative is praiseworthy because it draws upon an already good track record in liveability indices. For example, as per the InterNations Expat City Ranking 2021, Dubai ranks third worldwide in terms of ease of living. The city has been hailed for being easy to navigate even without local language proficiency and for its friendly local population. Dubai also does very well in the quality of the urban living index. When it comes to drafting master plans for the improvement of any city, every key economic sector must be factored in along with a roadmap for each. As such, cities tend to have a business-as-usual approach, where issues such as high energy and carbon footprint are secondary to economic growth. Against this backdrop, it is commendable

August 2022 | MEConstructionNews.com

that Dubai 2040 Master Plan has emphasised “green” projects and their conservation. Even a casual look at the 2040 Urban Master Plan reveals that the city planners have been mindful of sustainability and efficient resource utilisation. One of the key requirements of an environmentally responsible and sustainable city, especially in water-stressed regions, is provisioning for water security and inducing the 3R’s (reduce, reuse, recycle) wherever applicable. This involves maximising the utility of all available sources of water and harvesting rainwater while ensuring that our actions reconcile with social, economic, and environmental pillars of sustainability. Sustainably managing water resources becomes much easier if a city is built around the concept of soaking up and storing water safely and effectively — or "Sponge Cities" as they are known colloquially. As the name suggests, a sponge city soaks up water in rainexposed areas when the urban landscaping is done using porous material. The water is harvested, stored in underground reservoirs, and, with effective piping, redistributed to the utility grid. Sponge Cities also ensure flood management, strengthen the ecological infrastructure, and streamline drainage systems. As the Dubai 2040 Urban Master Plan posits a “green and healthy future”, addressing water scarcity — one of the pressing issues hindering holistic sustainability in the UAE — through proactive urban landscaping is a logical move. Integrating the concept of Sponge Cities into the Urban Master Plan will not only ensure that rainwater — the purest form of natural water — is harvested sustainably for various purposes but also mitigate flooding and waterlogging, which have become rampant in recent years. With urbanization set to increase due to population growth, sponge city deployment is a prudent step bearing in mind the next 20 years. All in all, the formulation of a Master Plan when the city is already ahead of the curve across multiple parameters attests to the leaders’ farsightedness. At a time of a great reset, when circumstances are evolving rapidly, planning for 20 years ahead is indeed tasking. However, a blueprint will ensure that planners have a good point of reference to accommodate changes, measure progress, and build better. Chandra Dake is executive chairman and group CEO of the Dake Group.

JOHAN EKSTROM

HUSQVARNA CONSTRUCTION

Using the right tools and technology to build more energy efficiently

s technology becomes more pervasive in construction sites, the industry will see an increase in productivity as well as a truncated construction schedule. To benefit from the technological advancements in the industry, it is advisable for construction sites to join the bandwagon and move at the same technological pace as other industries. The Middle East and Africa Construction equipment was valued at $125.3bn in 2018 and is estimated to reach a value of $285.4bn in 2024 at CAGR of 9.4%. Key drivers for technology adoption in construction are efficiency, productivity improvements, safety as well as cost reductions. The main drivers and benefits include: 1. TIMELY COMPLETION OF PROJECTS Construction delays result in increased costs to the original program scope. One reason behind specific concrete job delays can be the use of manual machines or traditional methods used to cut, drill the concrete, resulting in timeconsuming processes and involving safety risk. Light construction equipment has evidently brought a period of change in the industry. It offers numerous benefits to the contractor such as precision engineering, speed & efficiency in the job, modern engines with low fuel consumption and lower emissions.

COMMENT

With the help of the right type of equipment and diamond tools, fitted with cutting-edge technologies, smart application and bespoke approach contractors can ensure the cutting time is safe, efficient and is as per requirements. Heavy-duty machines that are embedded with advanced technology can do twice the amount of work and other tasks in less time and more efficiently. The utilisation of high-frequency current and digital processing can increase performance, productivity, and mobility. 2. INCREASED COST SAVINGS The reliability of the heavy-duty construction equipment also translates into higher profitability resulting in reduced defect-related claims, professional quality outputs and a higher quantity of jobs done in the same day. To gain the maximum efficiency, selection of right diamond tools for the application that contractors is performing is crucial. For that, the advice from concrete cutter or demolishing specialists that have expertise in using complex solutions will help avoid costly mistakes. 3. INCREASED SAFETY AND LESS HAZARDOUS Construction equipment housed with the latest technology are less hazardous, resulting in considerably reduced CO2, helping companies apply a greener footprint. An electric power cutter is an ideal solution to reduce work hazards, including inhaling exhausting fumes and dust at indoor jobs. 4. LONGER LIFETIME Using a power cutter on a daily basis for different applications has a longer lifetime use compared to other small power tools used to cut concrete. Combined with the right diamond tools for different application, it provides the contractors and application specialists to perform multiple jobs for long without major wear and tear. By using powerful tools and cutting-edge technology, developers are able to build stronger, taller, and more energy efficient structures, contractors benefit from increased productivity, improved collaboration, and be able to tackle more complex projects and for construction professionals it has made the sites safer. Johan Ekstrom is business development manager, senior application and product specialist at Husqvarna Construction.

DR. IVOR WILLIAMS TRSDC

Committing to creating a sustainable tourism industry

ith rising temperatures causing increasing frequency and severity of coral bleaching on reefs around the world, and ecosystems and habitats being impacted by human activity, there is a pressing need for committed proactive management of coral reefs, and nowhere more so than in the tourism industry, which is often decried for the effects it can sometimes have on the environment. There is an important opportunity now for developers to take accountability, beginning at the inception of a project and maintaining throughout a development’s lifecycle. True accountability goes beyond the simple announcement of ambitious plans. It is also defined by how effectively progress is tracked and outcomes are measured and requires transparent reporting. At The Red Sea Development Company (TRSDC), we are trying to set new standards for the tourism and hospitality industry by building a destination that puts the environment first in a way that we believe no other developer has done before. Our approach is one that brings together cutting-edge environmental research, sustainable practices, and a mission to achieve positive impact. With the Red Sea coast’s abundant and diverse wildlife, our research aims to explore and understand these ecosystems as well as inform on how to best conserve and

protect them. We have achieved a substantial milestone in this regard with the completion of our environmental baseline survey. This survey is by far the largest effort undertaken by a development company that I am aware of; it is more comparable in scale to initiatives undertaken by government agencies on a national level -for example our team surveyed fishes and corals at 300 different sites, we recorded >25,000 bird nests and over 500 sea turtle nests across our area. To achieve this level of effort, we recruited a team from academia and government institutions, including more than a dozen PhD scientists with collectively decades of experience. It’s a source of pride to be part of such a tremendous and committed team. The methodologies we used are in line with best practices, with data gathered through both direct observation and the utilization of hightech monitoring approaches. The application of advanced technology, such as machine learning to analyse benthic survey images, allowed us to gather massively more data than we otherwise could. That’s vital when you’re working in an area as large and diverse as ours – including 92 islands and more than 200 km of coastline. For this study, we worked closely with scientists from local institutions and agencies, particularly those at the Red Sea Research Centre in King Abdullah University of Science and Technology. Besides the help we have received, being a good partner with other research and management efforts in Saudi Arabia is fundamental for us. Our goal is that the information and understanding we gain not only has value for the tourist destination we’re developing, but also contributes to the larger Red Sea research and management community. Of course, The Red Sea Project is the primary driver behind the study. We recognize that to be able to deliver a truly sustainable destination, we need first rate information on the status and trends of the environment we operate in and the habitats and organisms that are present here. Our baseline study is by no means a one off. Our ongoing monitoring programs will allow us to observe and report changes over time. This baseline survey becomes the starting point against which we will measure our success against the company’s ambitious targets for conserving and protecting the local environment. We have long term goals, but for us to achieve those, the time to act is now. Dr. Ivor Williams is Marine Ecosystem Monitoring director at TRSDC. MEConstructionNews.com | August 2022

PROGRESS REPORT

Final update

Piling works commence on DAMAC’s Cavalli Tower

$545m luxury residential project expected to be completed within four years, developer says

iling works for the 70-storey Cavalli Tower have commenced according to developer DAMAC Properties. The luxury residential project was launched last year and is being built at a total investment of $545mn and is located in the Dubai Marina. On completion, it will offer occupants views of the Palm Jumeirah and is to August 2022 | MEConstructionNews.com

boast premium interior designs by Italian fashion house Roberto Cavalli. According to the developer, piling works are being executed by the National Piling & Land Draining Works. A total of 213 piles and approximately 1,400 metric tonnes of steel and 10,000cu/m of concrete are being used in the piling process, which entails drilling the ground to provide footings, in order to transmit the building’s load to deep strong strata underneath. “This is a milestone achievement as piling provides the foundations for the impending superstructure. We have received enormous interest in this project and have nearly sold out all units, our customers are super excited that construction work is progressing, and we can’t wait to build and complete, what we believe will be one of the most

Milestone achievement The commencement of piling works marks the start of work on the project, which has received enormous interest from investors, DAMAC says.

Cavalli Tower will be 70-storeys high

iconic and innovative towers that Dubai has ever seen,” said Niall McLoughlin, Senior Vice President at DAMAC. Once complete, the project will feature 485 units which are divided into three sections: the first floors are considered luxury, the middle section is upper luxury, while the top floors offer super luxury features and finishes. The luxury and upper luxury sections will have access to their own sky pool and sky gardens, while the super luxury category boasts an infinity pool, a cigar lounge and a private pavilion, where residents can host their own private dinner parties and hire their own chefs, stated the developer. Designed by Shaun Killa – who also created the Dubai Museum of the Future – the tower is expected to be completed in four years, DAMAC noted.

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