Big Project ME August 2024 by CPI Trade Media

Climate Positive Concrete

BIM Management

Project Collaboration

Contract Management

Asset Management

Field Management

ANALYSIS FEATURES INSIGHT

08 The Briefing

DAMAC signs main works contract with Modern Building Contracting Co. for DAMAC Harbour Lights

12 The Big Picture

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

14 Market Report

Savills shares insights on Bahrain’s property market in the first quarter of 2024

18 In Profile

Climate Positive Concrete

Jason Saundalkar speaks to Green Valley Biochar’s Tolga Soytekin and Bton Group’s Thomas Demmel about their new partnership and decarbonising construction in the GCC with climate positive biochar concrete

24 Interview Risk Hotspots in Giga-Projects

Joseph Brewer identifies a raft of contingent risks on giga-projects and highlights what can be done to address them

32 Comment

JLL’s Barry O’Reilly discusses the ripple effect of Saudi Arabia’s construction boom on the UAE’s real estate market

34 Comment

Urban planners in the region will need to use innovative design strategies to create even tighter neighborhoods, while forecasting future social habitation trends as far as ten years down the line says Gensler’s Steven Velegrinis

40 Final Update

ZaZEN Properties hands over ZaZEN Gardens in Dubai

Climate positive materials are key

Welcome to a new edition of Big Project Middle East (BPME)! With summer in full swing, I’ve been reflecting on what’s transpired in the regional built environment in H1 2024 purely from a sustainability standpoint.

In organising our various summits, I’ve been able to see first-hand the progress that authorities and construction stakeholders in the region have made with regards to driving change and decarbonising the sector. Plenty has been accomplished and that should be applauded, however there’s still a long road ahead before the sector significantly reduces its contribution to greenhouse gas emissions (GHGe) and global warming. The same is true for the rest of the world as well, as reports show that atmospheric concentrations of the three main GHGs – carbon dioxide, methane, and nitrous oxide – climbed to unprecedented levels in 2023, which contributed to a rise in global temperatures and extreme weather events.

In fact, at the end of 2023, a United Nations report noted that calculations indicate that

the world is speeding to 2.5-to-2.9-degrees Celsius of global warming since pre-industrial times. This of course shatters the goals of the Paris Agreement, which aimed to limit warming to 1.5C. While this might make it sound like it’s game-over, there’s still time to act; the report noted that if countries are able to slash their emissions by 42% by the end of the decade, there’s still a chance to achieve the goals of the Paris Agreement, and stave off catastrophic climate change.

Coming back to the built environment, I reckon one of the biggest opportunities for the sector to decarbonise is to continue innovating and developing more sustainable materials. There’s been several positive developments on this front, one of which is the focus of this month’s cover story. Concrete and its key component - cement - is a significant contributor to global GHGe (8% of global emissions), so it’s great to see sustainable alternatives that are climate positive.

As more climate positive materials come to market, coupled with existing sustainability focused initiatives and new delivery methods (modular construction etc), I firmly believe that the built environment will be able to significantly reduce its GHGe in the coming years, and contribute to building a Net Zero future.

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Climate Positive Concrete

218

ON THE COVER

BPME speaks to Green Valley Biochar’s Tolga Soytekin and Bton Group’s Thomas Demmel about their new partnership and climate positive biochar concrete

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STRATEGIC PRESENTED BY ELITE SPONSOR

DIGITAL TWIN

PROPERTY

Condor Sonate Residences launched in JVT

INFRASTRUCTURE

DEWA delivers new US $370mn substation network

CONSTRUCTION

Unigulf to supply thermal insultation to Azizi developments

CONSTRUCTION

China Machinery Engineering to deliver Sitra Phase 3

PROPERTY

Emaar expands loyalty scheme to two properties in Bahrain

EXPERTS: Embracing the 20-Minute city

Building a digital future

CONSTRUCTION

Work commences on Sobha Hartland mall

The retail and dining hub is set to provide a vibrant community focus, with an accent on sustainable design

PROPERTY

SUSTAINABILITY

Top Estidama rating for Sustainable City – Yas Island Abu Dhabi’s Urban Planning Council awards the development its highest-possible certification for villa sustainability

CONSTRUCTION

Record-breaking year for Mace as series of major projects complete Key highlights from 2023 includes completing ‘iconic projects’ such as One Za’abeel in Dubai and the Brent Cross West rail project in London

CONSULTANT

Next phase begins for Bahrain Sports City

Major new amenity will help position Kingdom’s brand on the global stage and provide critical sports hub for the region

CONSTRUCTION

New luxury resort announced for NEOM’s Magna district Equinox Resort Treyam will create upscale hospitality hub between THE LINE and Gulf of Aqaba

CONSULTANT

Riyadh stadium epitomises KSA’s new era

INFRASTRUCTURE

Adnoc awards major pipeline EPC contract

CONSTRUCTION

Kleindienst Group launches 1bn dirhams Marbella Resort Hotel

SUSTAINABILITY

Jebel Ali Beach development formally approved

Trident Grand Mall sold for US $20mn

Contract Award

DAMAC signs main works contract for DAMAC Harbour Lights

Scope of work includes the construction of a 52-storey tower and a parking block

DAMAC Properties has announced the signing of a new contract with Modern Building Contracting Co. (MBCC). The partnership is said to mark a significant milestone in the development of a 52-storey tower that will feature 294 luxurious apartments.

“We are excited to partner with MBCC on this landmark project. Their proven track record and dedication to excellence align perfectly with our vision for this development. This 52-storey tower will not only enhance the skyline but also set new benchmarks in luxury living,” said Mohammed Tahaineh, General Manager of Projects at DAMAC.

Under this contract, MBCC will undertake the main works package, which includes the comprehensive construction of the tower and the

parking block. Known for their largescale projects across Dubai, Sharjah, Ajman, Ras Al Khaimah, and Lebanon, MBCC brings a wealth of experience and a strong reputation for quality and reliability to this ambitious project.

The 52-storey tower is expected to be completed by Q2 2027. The timeline reflects the meticulous planning and coordination required to deliver a project of this scale and complexity, ensuring that every detail meets the highest standards of quality and excellence, the firm said in a statement.

In keeping with DAMAC’s commitment to innovation and sustainability, the project will incorporate advanced construction technologies, including the use of bathroom pods. These prefabricated units will streamline construction, enhance efficiency, and ensure consistent quality across all apartments.

UNITED ARAB EMIRATES

We are excited to partner with MBCC on this landmark project. This 52-storey tower will not only enhance the skyline but also set new benchmarks in luxury living”

Positioned between Port Rashid and Dubai's Drydocks World, DAMAC Harbour Lights offers spacious one-, two-, and three-bedroom apartments designed to reflect maritime history, while providing modern seafront living. Harbour Lights is said to also feature a range of modern amenities. Inspired by the Greek word 'Chrysogonos,' meaning 'begotten of gold,' the design incorporates elements of opulence and gran-deur associated with maritime history, the statement noted.

DAMAC Harbour Lights is one of more than 15 residential towers

Project delivery

The project will incorporate advanced construction technologies, including the use of bathroom pods, the firm said.

launched by the developer over the past two years. With an increasing demand for luxury and branded residences, DAMAC continues the trend by offering home projects that are tailored for investors who seek residences that are a blend of comfort and value for money. As well as residential towers, keeping pace with a rich portfolio of community projects including the upcoming DAMAC Lagoons, the developer’s third master community which is expected to begin handing over units this year, the statement concluded.

EWEC issues

RFP for 400MW BESS

UNITED ARAB EMIRATES

The firm said it is deploying BESS to enhance the flexibility and stability of Abu Dhabi’s energy network

An RFP for an independent greenfield 400MW battery energy storage system (BESS) power project in Abu Dhabi has been issued by Emirates Water and Electricity Company (EWEC). Once operational, it aims to provide up to 800MW-hours of storage capacity, EWEC said in a statement.

The RFP is being issued to bidders who passed the qualification process following the Expression of Interest (EOI) stage that took place in April 2024. A total of 93 companies and consortiums are said to have submitted bids, while 27 companies and consortiums qualified

for the RFP stage after submitting statements of qualification. The deadline for sending the bids has been set for Q4 2024.

A BESS is designed to capture energy from renewable and nonrenewable sources and store it in rechargeable batteries (storage devices) for later use. The battery is a Direct Current (DC) device and when needed, the electrochemical energy is discharged from the battery to meet electrical demand to reduce any imbalance between energy demand and energy generation.

The increase in renewable energy sources and push to achieve Net Zero carbon makes BESS solutions an essential technology for commercial

and industrial organisations. BESS systems are increasingly seen as a vital pathway in the transition to green energy and accelerating the move towards Net Zero.

EWEC said that it is deploying BESS to enhance the flexibility and stability of Abu Dhabi’s energy network, allowing for the effective management of peak demand

Through this strategic project, we are strengthening Abu Dhabi and the UAE’s position as leaders of the global energy transition and accelerating the nation’s Net Zero goals”

and integration of increasing amounts of renewable energy.

“As we commission the development of the UAE’s nextgeneration energy infrastructure, the 400MW BESS project marks a key milestone in our strategic efforts to enhance the resilience and efficiency of the power network. Utility-scale BESS technology will

facilitate our rapid integration of increased amounts of renewable energy from solar PV to the system and enable us to operate and manage peak demand more efficiently,” said CEO Othman Al Ali.

BESS technology will provide crucial ancillary services such as frequency response and voltage regulation, further reinforcing the security of supply and supporting the utility company to increase its solar photovoltaic (PV) capacity to 7.5GW by 2030, the statement added.

The accelerated growth in renewables will significantly reduce the carbon dioxide intensity of EWEC’s power supply, from 330kg/MWh in 2019 to an estimated 190kg/MWh by 2030.

“Through this strategic project, we are strengthening Abu Dhabi and the UAE’s position as leaders of the global energy transition and accelerating the nation’s Net Zero goals. We look forward to working with best-in-class partners to bring this vision to fruition, further advancing the energy sector into a more sustainable future,” he concluded.

EWEC senior lead Othman Al Ali is the CEO of Emirates Water and Electricity Company (EWEC).

01 UNITED KINGDOM

Agratas awards contract for UK battery cell facility

Agratas has awarded UK-based contractor Sir Robert McAlpine the contract to build a battery cell manufacturing facility in the UK. Agratas noted that Sir Robert McAlpine will build ‘Building One’ of the facility and ancillary developments, covering a gross external built area 244,710sqm near Bridgwater in Somerset.

The contractor said it has started preparations for the development, which is scheduled to be operational in 2026. It added that initial works are already underway, with piling expected to commence in the coming weeks.

Mace and Doha

Festival City leads the charge for Tesla

The first Tesla Superchargers in Qatar became fully operational last month. With the addition of Qatar, Tesla now has Supercharger stations in four countries in the Middle East.

Doha Festival City now features a total of 46 EV charging stations – the most at a single location in Qatar.

Mace led the project management and installation of the 12 Tesla Superchargers, having previously overseen the completion of 23 EV charging stations at Doha Festival City two years ago for FIFA World Cup Qatar 2022.

02 AFRICA 1,400km highway to be developed

The ‘first’ highway in Angola, Africa will be built by contractor China Road and Bridge Corporation. The project will span 1,400km with costs estimated to be approximately US $2.5bn, however an expected completion date has yet to be announced.

The country’s inaugural highway –which was first approved as a public/ private partnership funding scheme in 2020 – will link the northern and southern regions of Angola, including connections with neighbouring Namibia and the Democratic Republic of Congo, said a report.

Douglas OHI begins work on Ghubrah 3 Desalination Plant

Douglas OHI has begun the construction of temporary office facilities and essential utility infrastructure for the Ghubrah 3 Desalination Plant in Oman. The groundbreaking is said to signal the commencement of construction activities on the project, which will be the largest desalination plant in Oman.

Set to serve as a lifeline for 2.5m inhabitants of Muscat, the plant is billed as a vital infrastructure project and will have a normal capacity of 300,000cu/m per day and the ability to ramp up to 315,000cu/m per day during peak demand periods.

03 SAUDI ARABIA NEOM completes construction of light rail network systems

NEOM has completed the construction of light rail systems and underground parking ahead of schedule, marking a significant milestone in the construction of its zero-carbon city initiative.

The project achieved rapid daily progress, with each drilling rig completing three piles per day; the 10 high-capacity rotary drilling rigs were from Chinese heavy machinery manufacturer XCMG Machinery.

The underground parking and light rail are said to be key elements of NEOM’s advanced sustainable transportation plan.

06 INDONESIA

Works on Bali’s US $20bn subway project to begin in September

An investor has been secured by the provincial government of Bali, Indonesia for a US $20bn subway project.

The new system of trains is meant to reduce congestion on existing road infrastructure.

The infrastructure development’s project manager PT Sarana Bali Dwipa Jaya (SBDJ) notes that construction is expected to start in September. The scheme will run through four phases and introduce an underground rail network between Bali’s I Gusti Ngurah Rai International airport and the country’s popular tourist destinations.

04 DOHA

05 OMAN

China announces plans for 8GW solar facility

China Three Gorges Renewables Group has announced plans for the ‘world’s largest solar farm’ in Ordos, Inner Mongolia, China.

The 8GW facility is expected to be developed at a cost of US $11bn and is expected to span 200,000 acres, which will make the facility almost 100km2 larger than the island of Singapore, and about 30km2 larger than New York City. Three Gorges has a 56% stake in the project, with Mongolia Energy Group holding the remainder.

Expected to open in 2027, it will be able to power approximately six million homes.

Mace appointed as PMP for MTR projects

Mace has been appointed as the PMP for Hong Kong’s MTR Corporation’s railway extension projects.

The MTR said it is undertaking six railway projects and extensions: the Northern Link Project, Hung Shui Kiu Station, Tuen Mun South Extension, Tung Chung Line Extension, Oyster Bay Station and Airport Railway Extended Overrun Tunnel.

Mace said it will create a PMO to ‘enable the smooth implementation of PMO functions and digital systems to support the client’s transformational and digital project goals and vision’.

appointed for project in

Australia’s federal and state governments have appointed CPB Contractors, a subsidiary of Australia-based Cimic Group, to develop the Tram Grade Separation Projects in Adelaide. The Cimic Group said the scope of work for the projects includes works at three locations along the Glenelg Tram Line in Adelaide.

The project will be delivered inconjunction with several other firms including: Arup, Aurecon, McConnell Dowell and Mott MacDonald.

The plan also calls for signal upgrades along the tram corridor and the creation of new public spaces, said Cimic Group.

08 HONG KONG

CHINA

Industry Outlook

BAHRAIN

Bahrain Property Market Q1 2024

Savills shares insights on Bahrain’s property market in the first quarter of 2024

Bahrain recorded a GDP growth of 2.4% in 2023, a decline compared to 4.9% in 2022, owing to the effects of geo-political tensions, and recessionary pressures, according to the preliminary data released by the Information and eGovernment Authority (IGA). However, the the Ministry of Finance and National Economy projects an annual real GDP growth of 3.0% in 2024, driven primarily by the non-oil sector.

The non-oil sector plays a significant role in driving economic growth. The most significant contributors to GDP are financial corporations, which account for 17.8% of GDP, and the manufacturing sector, which contributes 13.6% of GDP. Other important sectors include government services, transportation and communication, and the construction sector.

Inflation in Bahrain has significantly decreased. The previous year ended with an average Consumer Price Index (CPI)

of 0.1%, suggesting very low inflationary pressures and creating a positive environment for consumer and business confidence.

Despite the CPI being one of the lowest in the region, there is a possibility of a 1.4% price increase in the first quarter and an average increase of 2.0% throughout 2024.

Based on the initial findings of the Foreign Direct Investment (FDI) survey conducted jointly by the Information and eGovernment Authority and the Central Bank of Bahrain, the total FDI inflows for 2023 amounted to BHD 2.6bn, marking a substantial year-on-year growth of 147.8%.

The sector of Financial and Insurance Services witnessed the most significant surge, with FDI inflows reaching BHD 2.7bn.

In the Agility Emerging Markets Logistics Index 2024, released by Agility, Bahrain

secured the 16th position among 50 countries worldwide. This index evaluates the performance of countries based on four key aspects: Domestic Logistics Opportunities, International Logistics Opportunities, Business Fundamentals, and Digital Readiness. Furthermore, Bahrain has climbed 14 spots to rank 54th out of 184 countries in the 2024 Index of Economic Freedom, a report published by the Heritage Foundation.

According to data by the Survey and Land Registration Bureau, the value of real estate trading decreased by 1.2% YoY in 2023 to reach BHD 1.1bn. However, the volume of transactions grew by 24.1% YoY in 2023. Meanwhile, between January and March 2024, there were 6,124 sales transactions, representing a 3.0% drop in trading compared to the same period last year.

RESIDENTIAL SALES MARKET

Despite facing challenges, Bahrain’s real estate sector continues to experience growth. This upward trend is fuelled by several factors, including government support, increased investor confidence, and a rising demand for real estate in the region.

Home buyers are becoming more strategic in the market, primarily focusing on mid-range properties. The availability of more affordable housing options with improved amenities has shifted the market dynamics in favour of tenants.

A notable trend is the increased demand for luxury waterfront properties, driven by Bahrain’s coastal location and flourishing high-end tourism industry. These properties appeal to discerning buyers seeking exclusivity and comfort.

On the residential supply side, a steady stream of projects are expected to be handed over in 2024. This continued increase in supply could further widen the gap between demand and supply. Some of the significant completions in Q1 2024 include Onyx Residences by Kooheji Development, Al Nasseem Phase 2 Villas by Diyar Al Muharraq, and Wadi Al Riffa by Bareeq Al Retaj, among others.

The capital values of residential units in the country are influenced by the balance between project supply and demand. With a significant amount of supply lined up, capital values could potentially see a marginal decline in the short term as new projects are completed.

The capital values of apartments remained relatively stable in the country, with a slight quarter-on-quarter growth of 0.3% in Q1, primarily due to the

growth in high-end apartment units, now averaging at 832 BHD/sqm.

Factors such as tighter liquidity conditions, lower loan-to-value ratios, and higher lending rates have affected the demand for premium developments, particularly villas. Highend villas sawa year-on-year dip of 4.5% in capital values, averaging at 583 BHD/sqm.

RESIDENTIAL RENTAL MARKET

Overall rental values in the residential sector recorded marginal declines compared to Q4 2022. Rents across apartments were corrected by 1.3% and villas by 1.0% y-o-y. Across apartments, the biggest drop was observed for low-end properties, where quoted rents dropped by 5.6% y-o-y and are now estimated at BHD 425/month. Mid-end properties were corrected by 3.5% y-o-y and are now estimated

at BHD 493/month. High-end properties on the other hand, saw a marginal annual increase and are now estimated at BHD 649/month. Rental values on average dropped by 1.0% across villa developments. On average, rents in the low-end segment dropped by 3.1% y-o-y and are estimated at BHD 775/ month. Rents across mid-end and high-end segments are now estimated at BHD 1,069/ month and BHD 1,275/month respectively, having corrected by an average of 1.0% y-o-y.

OFFICE SALES & RENTAL MARKET

During the current review period, the office sector’s activity was relatively quiet. The market’s dynamism was primarily fuelled by businesses renewing their leases in high-quality Grade A properties. These businesses chose to continue operating from their existing

locations. Rental rates for high-end offices now average at BHD 6.4 per sqm per month. This is slightly higher than mid-end offices at BHD 6.3 per sqm per month and significantly higher than low-end offices at BHD 4.1 per sqm per month. This has resulted in a yearon-year rental contraction of 1.8% overall.

In terms of capital values, the limited fluctuations in office rental prices have led to no significant changes. Despite the demand for spaces in quality assets, the capital values for Grade A properties have remained stable. This stability is due to an increase in supply, with quality completions like Sayacorp, Future Generation Reserve Tower, and Seef Boulevard expected in the near term. These additions to the market could further correct rentals, potentially leading to a capital value drop of 1-3%. In contrast, low-end properties in the

Capital Governorate have experienced a 6.0% quarter-on-quarter drop in capital value.

On the demand side, financial services and government entities were the key space takers during Q1 2024. There has been a noticeable increase in demand for LEED-certified office spaces as well. This trend is expected to continue as companies strive to meet their Environmental, Social, and Governance (ESG) goals and requirements. Additionally, the demand for co-working spaces is on the rise, particularly from startup companies and businesses looking to downsize or right-size their operations.

RETAIL RENTAL MARKET & INDUSTRIAL RENTAL MARKET

The retail and trade industries are experiencing a positive trend. For the fourth quarter in a row, rental rates have maintained stability.

Due to the festive season, there was a surge in mall footfalls in the first quarter of 2024. The government’s efforts to draw tourists, including significant infrastructure investments and the organisation of events and festivals, could potentially enhance the retail sector in the foreseeable future. The country's mall and mixed-use development rentals remained stable and sits at BHD 12.3/sqm/ month and 7.9 BHD 12.3/sqm/ month, respectively. However, strip retail rentals have dropped by 1.0% y-o-y.

The manufacturing sector is the primary driver of demand in the industrial market, with an average space occupancy ranging from 1,500 sqm to 3,000 sqm.

In terms of rentals, despite a yearon-year increase of 1.2%, average rental rates for large and medium-sized warehouses have remained steady.

Biochar Concrete

Climate Positive Concrete

JASON SAUNDALKAR SPEAKS TO GREEN VALLEY BIOCHAR ’S TOLGA SOYTEKIN AND BTON GROUP ’S THOMAS DEMMEL ABOUT THEIR NEW PARTNERSHIP AND DECARBONISING CONSTRUCTION IN THE GCC WITH CLIMATE POSITIVE BIOCHAR CONCRETE

he landmark Paris Agreement entered into force on the fourth of November 2016 and outlined a number of goals with regards to combating climate change, and accelerating and intensifying actions and investments needed for a sustainable low carbon future.

Some of the key aspects of the agreement included strengthening the global response to climate change, with the goal of limiting global temperature increases to well below two degrees Celsius, while pursuing efforts to limit the increase to 1.5-degrees Celsius. To achieve this goal, parties agreed to reach global peaking of greenhouse gas emissions (GHGs) as soon as possible, with the understanding that peaking will take longer for developing countries, with the aim of achieving a balance between anthropogenic emissions by sources and removals by sinks of GHGs in the second half of the century.

Since the Paris Agreement came into effect, significant progress has been made in terms of decarbonising industries and economies around the globe, however there’s plenty more than needs to be done in the journey towards Net Zero.

POST PARIS RED FLAGS

In early January 2024, the National Aeronautics and Space Administration (NASA) issues a statement confirming 2023 was the warmest year on record. Its statement on 12 January noted: ‘earth’s average surface temperature in 2023 was the warmest on record, according to an analysis by NASA. Global temperatures last year were around 1.2-degrees Celsius above the average for NASA’s baseline period (1951-1980), scientists from NASA’s Goddard Institute for Space Studies (GISS) in New York reported’. It added: ‘in 2023, hundreds of millions of people around the world experienced extreme heat, and each month from June through December

set a global record for the respective month. July 2023 was the hottest month ever recorded. Overall, Earth was about 1.4 degrees Celsius warmer in 2023 than the late 19th-century average, when modern record-keeping began’.

“NASA and NOAA’s global temperature report confirms what billions of people around the world experienced last year; we are facing a climate crisis. From extreme heat, to wildfires, to rising sea levels, we can see our Earth is changing,” said NASA Administrator Bill Nelson.

“The exceptional warming that we’re experiencing is not something we’ve seen before in human history. It’s driven primarily by our fossil fuel emissions, and we’re seeing the impacts in heat waves, intense rainfall, and coastal flooding,” remarked Gavin Schmidt, Director of GISS.

More recently, on 6 June 2024, Copernicus - the European Union’s Earth Observation Programme – announced that May 2024 marks 12 months of record-breaking global temperatures. Its press statement highlighted: May 2024 was warmer globally than any previous May in the ERA5 reanalysis dataset, going back to 1940, and was the twelfth month in a row that was the warmest in the ERA5 record for the respective month of the year. While unusual, we nevertheless

saw a similar streak of monthly global temperature records in 2015/2016. Last month was 1.52-degrees Celsius above the estimated May average for the 18501900 pre-industrial reference period.”

EXTREME WEATHER EVENTS

As the climate changes, industry experts including those from NASA warn that the frequency and intensity of extreme weather events will increase, including heat extremes, wildfires, droughts, tropical cyclones, heavy precipitation, floods, high-tide flooding and marine heat waves. In the Middle East, and more specifically the UAE, on 16 April the country witnessed its heaviest rainfall on record, surpassing anything documented since the start of data collection in 1949 according to the National Centre of Meteorology. The downpour bought life to a standstill and caused significant damage to property and infrastructure.

In an interview with Khaleej Times, Dr. Diana Francis, Senior Research Scientist and Head of the Environmental and Geophysical Sciences (ENGEOS) Lab at Khalifa University said the UAE will experience more frequent extreme weather events in the future. She noted that due to global warming, the country will have increased rainfall in the spring, as well as hotter and longer summers.

37%

The built environment sector is responsible for 37% of total carbon emissions globally

She explained, “There has been indication in the recent reports of the International Panel on Climate Change (IPCC) that extreme weather events like heat waves or rainfall are going to be ‘more frequent’ and ‘more intense’ due to the increase in global temperature. This varies according to the region. It could be a heatwave in Asia for instance, or intense rainfall that we witnessed in the UAE.”

Taking all this information into account, it’s absolutely imperative that efforts be stepped up to prevent catastrophic climate change and the occurrence of extreme weather events. The built environment has a key role to play, as the sector is responsible for 37% of total carbon emissions globally, and involves several hard-to-abate sectors.

According to World Economic Forum and Boston Consulting Group, the green transition of the building value chain can unlock US $1.8tn in market opportunities globally, as well as significant social and

Making a difference Thomas Demmel, CEO of Bton Group.

environmental value. The WEF noted that to fully seize the opportunities presented by the green transition of the building sectors, stakeholders across the value chain should adopt a strategic and collaborative approach, especially around standard setting, flagship development, policy design and innovation.

One area of the sector that deserves significant focus is cement and concrete, which have a significant environmental footprint stemming from its manufacture and use in buildings and infrastructure. It’s estimated that 7.3bn cubic metres of concrete is used worldwide each year, and cement – the core material used to make concrete – is responsible for 9% of all CO2 emissions globally.

TACKLING CONCRETE EMISSIONS

Reducing the impact of this material on the environment is therefore crucial, and is the focus of a partnership that was announced in early July 2024 between Green Valley Biochar and Bton Group. The former company is a producer of biochar – a carbon sinking material traditionally used for soil enhancement – while the latter is a Germany-based

technology-driven concrete company. The collaboration is said to represent a significant step towards sustainable construction in the GCC region.

The partnership between the two firms will see biochar being used in the production of concrete. The Bton Group is said to have developed technology that allows the use of biochar in concrete without any adverse effects. The firm said that the use of biochar actually enhances the durability of the concrete, and the resulting product is climate positive, achieving more than 100% CO2 savings.

Discussing the concrete industry and cement’s impact on the environment and the partnership with Bton Group, Tolga Soytekin, Co-Founder, Green Valley Biochar notes, “Concrete is used twice as much as any other construction material. Cement (the core ingredient within concrete) is responsible for 8% of global emissions and 90% of the emissions within concrete. As the global population is expected to rise to 10bn by 2060, there is a need to build at scale with a material that will not destroy the planet. This is why Green Valley Biochar and Bton Group’s partnership is so important.

90%

Cement is responsible for 8% of global emissions and 90% of the emissions within concrete

We can produce concrete which sinks more CO2 than is produced. In other words, the concrete produced as a result of our partnership is climate-positive.”

As per the terms of the memorandum of understanding (MOU) signed by the two firms, Green Valley Biochar will supply or manage pyrolysis plants for the production of biochar and secure the supply of biomass. The Bton Group will then utilise the biochar in concrete production. The partnership is expected to open a new market for Green Valley’s biochar and enable Bton Group to provide large-scale climate positive solutions to the region.

The partnership between the two firms was set in motion by an environmental solutions consultancy. Soytekin says, “Bton and Green Valley Biochar were introduced by Synova, an environmental solutions consultancy working closely with a major real estate developer in the UAE. Part of the developer’s mandate was for the use of locally sourced lightweight aggregates, hence the two companies were a perfect fit.”

Shedding light on some of the shortand long-term goals of the partnership,

First step Bton opened its first plant for climatepositive concrete in Germany in Soltau, in the German State of Lower Saxony.

Soytekin states, “In the short term, we will immediately deliver solutions to clients fulfilling their needs for carbonneutral concrete, thereby meeting their sustainability goals. In the long term, Green Valley and Bton will establish production facilities that include onsite pyrolysis plants for efficient manufacturing. Through ongoing discussions with developers, we expect there to be extremely large off-take demands, which will require establishing multiple production facilities.”

Soytekin says that in addition to the firm’s existing facility in Dubai, it will establish new facilities in Abu Dhabi and Saudi Arabia. “These locations have been selected due to the vast amount of construction required in the coming years. There is a strong emphasis on decarbonising construction and reducing reliance on existing resources. The partnership between Green Valley and Bton not only allows for the decarbonisation of concrete, it also utilises non-traditional resources, enabling a more resilient supply chain and reducing the impact of the fluctuating material markets,” he outlined.

Thomas Demmel, CEO of Bton Group is positive about the impact of the partnership and sees significant opportunities in the region. He comments, “The combination of Green

Expansion

The partnership is expected to open a new market for Green Valley’s biochar and enable Bton Group to provide large-scale climate positive solutions to the region.

Valley Biochar and Bton’s technologies enables the production of a previously unattainable product: biochar concrete. Traditionally, when using more than 2% of biochar within concrete, the absorbent properties of biochar would lead to poor mixability, pourability, and strength in concrete. However, Bton’s technologies overcome this major challenge, allowing the seamless incorporation of biochar into concrete products. This innovation drives

Biochar concrete absorbs more emissions than it produces, offering the same strength and durability (if not better) as traditional concrete. It boasts a superior finish and can be produced in all existing strength classes and for all existing applications”

the sustainable concrete market forward, enabling developers to create truly sustainable buildings and infrastructure.”

REAL WORLD BENEFITS

Highlighting the production process for the carbon positive concrete and its benefits, Demmel outlines, “Within Bton’s concrete production process, CO2-reduced cement (low-clinker) is used, enabling a reduction of CO2 by

70%. Bton’s technologies allow for these cement to be used while achieving the same strengths and curing times as when using highly emitting Portland cement (high-clinker). This means that the concrete contains 70% less CO2 with the same performance and cost as traditional concrete. Additionally, Bton’s lower hydration temperature eliminates the need for additional cooling methods such as cold water or ice, saving time, money, and labour, particularly in hot climates like the UAE, where temperature control is crucial to avoid cracking.”

“The addition of Green Valley’s biochar is the key enabler to producing concrete with neutral or even negative CO2 emissions. Biochar is a carbon sink, with 1kg of biochar equating to 3kg of CO2e (depending on the feedstock) which when added to concrete, greatly reduces its carbon footprint. As well as biochar allowing for carbon-neutral and carbon-negative concretes, the additional carbon embedded into the concrete can also enhance the durability and strength of the concrete, leading to a product with specifications even better than those produced through traditional production methods.”

He emphasises, “The resulting product is concrete that actually absorbs more emissions than it produces, offering the same strength and durability (if not better) as traditional concrete. Our concrete also boasts a superior finish and can be produced in all

Sustainable alternative Biochar concrete meets all required norms and specifications, performing exactly as traditional concrete. This allows construction and development companies to use it as a direct replacement for their existing concrete says Demmel.

existing strength classes and for all existing applications in the sector.”

Soytekin adds, “It’s important to consider the type of biochar used in the cement mixture as all types of biomass can be converted to biochar, however, certain biomass used as a feedstock during the pyrolysis phase produces a lower carbon product. Green Valley exclusively used hardwood waste and creates biochar with 80to-90% recalcitrant carbon content, making it ideal for use in industrial applications for maximum impact.”

40%

Bton’s innovative process allows for the production of concrete that is 40% lighter than regular concrete

Demmel is also quick to point out that compared to alternative low carbon concretes, biochar concrete does not come with additional costs. “Unlike other CO2-reduced concretes, the concrete produced as a result of the partnership between Green Valley and Bton does not come with a green premium—a large increase in price due to its sustainable and CO2 reduction characteristics. Instead, it is priced competitively against traditional concrete. It also meets all required norms and specifications, performing exactly as traditional concrete. This allows construction and development companies to use it as a direct replacement for their existing concrete. The product has undergone rigorous testing in both Europe and the Middle East and is held to the highest standards, having been independently verified.”

He adds, “Additionally, Bton produces biochar concrete in lightweight concrete

classes. Bton’s innovative process allows for the production of concrete that is 40% lighter than regular concrete, while maintaining the same compressive strength. This results in a concrete that is extremely resistant to natural disasters such as earthquakes while being simultaneously climate-positive.”

Here, Demmel states that biochar concrete also offers a number of benefits with regards to its mix and recycling. “Bton’s biochar concrete can incorporate large amounts of recycled concrete and materials within its mix designs. The biochar concrete produced by Bton is also fully recyclable in the same way as traditional concrete, enabling a truly circular production process.”

He summarises, “The groundbreaking partnership between Green Valley and Bton is poised to revolutionise the sustainable construction industry in the Middle East. The innovative biochar concrete is not only climatepositive but also competitively priced, making it an instant game-changer for any construction project.”

“The partnership will benefit the whole construction industry and allow for highly sustainable - in fact, carbon negative/climate positive and price competitive concrete/precast concrete elements. This collaboration, which has been propelled by one of the largest real estate developers in the UAE, is a landmark for technology-driven circular solutions in the GCC,” he concludes.

Risk Hotspots in GigaProjects

AT A TIME WHEN WE HEAR MORE AND MORE ABOUT SAUDI ARABIA’S ‘GIGAPROJECTS’, IT’S WORTH KEEPING IN MIND THAT THEY ESCALATE NOT ONLY THE LOGISTICS OF URBAN DESIGN, PROCUREMENT AND PROJECT MANAGEMENT, BUT ALGORITHMICALLY INCREASE THE LIKELIHOOD OF CRITICAL RISK. HERE, RISK MANAGEMENT AUTHOR JOSEPH BREWER AUTHOR OF ‘ WHEN MEGA GOES GIGA’ IDENTIFIES A RAFT OF THESE CONTINGENT RISKS, AND WHAT TO DO ABOUT THEM…

here’s no getting round it: very large and complex projects are fragile for many reasons and they tend to be overlysensitive to many issues that smaller projects tend not to face (and even if they do, with a smaller scale, they’re more easily resolved). So, it makes sense that execution plans must not only focus on doing the right things, but they also have to address the key vulnerabilities these giga-type projects face.

Let me say this very clearly: about 60% of large complex projects actually fail.

The reality is that the history of large complex projects is strewn with significant cost overruns and schedule delays. Using basic cost and schedule criteria, benchmark data indicate that, nominally, two-thirds of such projects significantly fail. In short, they fail at a much higher rate than normal-sized large projects. Of course, for those who wish to undertake such behemoth efforts, these realities are discomforting. The obvious resort will be to visit the host of published best practices and guidelines that attempt to identify the most effective methods to address these heavyweight challenges. Yet often, these won’t tackle the challenges in enough detail, nor effectively categorise the solutions.

So - let’s invert the problem and describe a cluster of risks that help organisations guard against what NOT to do. The following are core ‘hotspots’ contingent on the new raft of giga-projects. You may well recognise them without having realised that they are in fact endemic scenarios which organisations large and small are confronting every hour, every day.

FAILURE TO DO THE BASICS WELL

In the last 30 years the industry has attempted numerous times to define the best practices associated with developing and executing large projects. These industry best practices are not hard to

find and are readily available to any organisation with the resources to train its employees. History has demonstrated, however, that establishing these best practices so they become integral to the project organisation’s culture and daily behaviour is both time consuming and difficult. As a result, projects are still routinely developed and executed without teams deploying all of these best practices. Ensuring that all project team members are well versed in these best practices and synchronised on terminology and methodology is paramount when executing a large complex project.

UNSTABLE OBJECTIVES

All projects start with an intended objective, sometimes referred to as its mission or desired outcome. All projects suffer negative impacts if this objective is not fixed and stable throughout the project. The end-point that defines success for a project must remain the same throughout its journey. If not, it will suffer rework, delays, added costs, and schedule extensions. When these occur to a very large and complex project, the negative impacts are equally large and complex.

UNQUALIFIED TEAM MEMBERS

The engineering and construction industry identifies and executes projects. The industry is volatile. Peak to valley workload levels can easily range from five to one. While many reasons exist for this, the resulting impact on the personnel who staff this industry is immutable. The company may be growing and hiring, often acquiring inexperienced personnel, or the current staff is moving on due to insufficient future work, perhaps seeking work in other industries.

Another concurrent reality is that the large majority of people who have relevant experience with projects are already working on a project. Thus, when the time comes to staff-up that next project, organisations begin to ask the inevitable question - who is available? Answering that question often doesn’t place the most qualified personnel in commensurate roles on the new project. The result is often inexperienced, or insufficiently experienced, personnel assigned to key roles - particularly on large projects

where there are more roles to fill. These two concurrent realities alone perhaps explain why the industry struggles with consistently deploying its best practices.

UNPROVEN TECHNOLOGY

Credible benchmark data show projects attempting to deploy a new primary technology face higher levels of challenges and thus perform less well than projects deploying mature and proven technologies. Deploying new technologies is a welcomed initiative. It’s one reason why the engineering and construction industry can become more productive and produce better and higher-quality products. Some best practices specifically relate to the unique

Getting the basics right Ensuring all project team members are well versed in best practices and are synchronised on terminology and methodology is paramount when executing a large complex project.

challenges of executing new technology. Deploying new technologies within the scope of a very large and complex project, however, simply increases the risks that unexpected discoveries will occur and will create late changes.

Large complex projects are best suited for mature technological scopes. If new technology elements are inevitable, then learning and deploying the best practices for managing this discoveryprone scope is very worthwhile.

INCOMPLETE FRONT-END LOADING

“Fix the scope before starting the project.” This old adage has matured significantly in construction. Today, the contents and level of detail in front-end engineering

design (FEED) packages are precise. These FEED activities are critical to the success of projects. Complete, robust execution of these activities is a prerequisite to project success. Funding, however, is required to perform this early work. Complex projects require large amounts of early funding for robust FEED. An unfortunate propensity is to underfund this early work when the project scale is very large. Obtaining large amounts of funds for a big project not sufficiently defined to obtain quality estimates or bids is understandably difficult. If sufficient funds are not obtained, however, and the resulting FEED is not performed well, the consequences will be dire.

CONSTRAINED FUNDING

This will in all likelihood sound very familiar. Large complex projects often have very large budgets and can experience cash flows greater than US $300mn per month. These size numbers make everyone nervous. Often this manifests in attempts to constrain the spending to reasonable levels. In short, you can’t put gorillas on diets.

Attempts to constrain funding often start ahead of full authorisation (the typical full funding point) during the formative period for the project. Nothing can be more damaging than to prevent a large project from doing the work that it needs to do. Yet those who attempt to limit the funding often feel they have a duty to keep project leaders from spending funds too freely. Nothing could be further from the truth. If the nominal project capital cost is, say $10bn, then it may well take $750mn to complete FEED and obtain a quality cost estimate to take to the funding committees. And yes, someone has to put up that initial $75omn before full funding can be achieved. Not a comfortable journey for the faint-of-heart.

LATE CHANGES

Changes in project objectives and technologies can have negative impacts on cost and schedule, especially changes that occur after full sanction. Large complex projects always take longer than typical large projects. This lengthened schedule gives greater opportunity for change to creep into the picture.

Change forces can come from changes in management, market conditions, the local community, environmental regulations, labor supply, and numerous other areas. Due to their greater scope and longer schedules, large complex projects attract greater than average change forces. Early stakeholder alignment and planning – in order to combat these forces - are all there is to minimise this reality.

A PROJECT AHEAD OF THE DEAL?

Multiple entities often sponsor large complex projects. These can be joint venture partners, multiple municipalities, and/or government entities. The result is that none of these organisations is on their own turf, using their typical processes for project development.

Therefore, they are typically working for the first time with a project’s specific set of stakeholders and using unfamiliar processes to build alignment on what they want to achieve and how they want to achieve it.

Often these stakeholders, however, are aware that a large project’s schedule for development and execution will take many years. This realisation builds consensus that the project effort should begin, even though the details of what is to be built may still be ambiguous. Starting a large complex project under these circumstances is very risky.

EXPECTING PRECISION

PREDICTABILITY:

COST AND SCHEDULE

Large projects are notoriously unpredictable by most people’s gut-check standards. If +/- three sigma defines a normally distributed system and with one

Resources are key Large complex projects require plenty of human resources in all the roles, both from the owner’s team as well as the contractor’s team.

sigma equal to 9% as the cost variation versus an authorisation estimate, then +/- 27% defines the ‘normal’ cost variation. Consider that a one sigma of 9% represents some of the best project systems in the world. Schedule variability is equally large. Bring to this environment executive leaders or public servants, all with an expectation that annual budgets will stay within a range of a few percent, and the components for significant non-alignment and conflict potential begin to appear. Careers have ended due to this disconnect of understanding.

IGNORING KNOWN RISKS

“Let’s focus on what we can control!” Not bad advice in the right setting. This thinking, however, can cause sponsors as well as project leaders to dismiss risks they recognise as completely out of their control and influence. Because this mantra is so prevalent within operating

organisations, it can leak into the culture of a project leadership team and cause it inadvertently to fail to place these type risks within the contingency and schedule analysis efforts, or within the risk management structure, or to underestimate their potential impacts. Just because one cannot influence a risk does not mean simply to ignore its power to create a negative result. Closely monitor its developments.

CONSTRAINED RESOURCES

Constraining the funds needed to develop and execute a large complex project can be devastating. Other types of constrained resources can have an equally harmful effect. The most prominent is a constraint on personnel: the type of personnel who have the experience to staff and lead the project teams supporting a major complex programme. Large complex projects need plenty of human resources in all the roles, both for the owner’s team(s) as well as the contractor teams. Naïve views persist that large scale projects can benefit from ‘economies of scale’ and thus require less people per unit of work. In fact, the reverse is true. These projects come with unique challenges that require human resources dedicated to managing them.

PRIORITISATION

Prioritisation and Pareto charts are the daily bread of operating organisations. They are at liberty to decide the most important work for today and what is to be done tomorrow or next year. This view of course permeates a project’s culture and project teams’ mindsets. And when used in the right settings and in the right way, prioritisation is both reasonable and prudent. When used within a project’s culture, however, it can be disastrous. It focuses our attention on what is ‘most important’ and similarly draws attention away from what is ‘not so important.’ In this way, some things are delegated to someone else later. Many seemingly unimportant things are not worked on because they were down a bit on the Pareto chart. Projects, and especially large complex projects, cannot suffer from this type of culture. Everything on a Pareto chart or on a checklist must be performed as scheduled, with the

needed quality, every day, by every team member. A gate review meeting (or startup) is not the place to discover a piece of important work simply was not important enough to get done on time.

CONTRACTING THAT DOES NOT FIT THE MARKET

Different parts of the globe have different preferential and customary contracting practices for executing large projects. For example, large lump-sum contracts are customary within Asia Pacific countries, but not so within North America or Northern Europe. Trying to implement contracting styles from one’s home-base viewpoint in a region that considers those styles to be foreign is often disastrous. Yet home-base contracting styles frequently seem to be hard-wired into our brains as the ‘right way’ to get things done. Some Asia Pacific companies have attempted to execute large lump-sum contracts in the US, and vice-versa, North American companies attempting to execute mixed-contracting styles in Asia Pacific. Neither ever go well. A certainty in this industry: construction is always local. (Yes, a few modular projects have worked when the circumstances required it.) Get familiar with the contracting practices wherever they may be before assuming the home-base style can fit in anywhere.

Interventions Seasoned leaders in this industry tend to make their interventions sooner than they did earlier in their careers and are more direct with less ambiguity as their careers progress.

TIMID INTERVENTIONS

Plan A does not always work. This is true with personnel selected for a particular role on a project, or a contractor selected for a specific scope of work. All the right things are done to pre-screen these individuals and companies, but sometimes Plan A is not working out as imagined. Everyone’s attention then is drawn to the situation. Options are pondered. Coaching, mentoring, training, and coercion are tried. “Everything will work out.” There is a chance they might. The waiting and hoping begin.Such is the DNA of timidity.

There is no formula as to how much time should be used to correct a situation that needs correcting. Most people will take too long. It is human nature to hope, taking deep breaths. Seasoned leaders in this industry, however, tend to make their interventions sooner than they did earlier in their careers and are more direct with less ambiguity as their careers progress. Large complex projects cannot suffer through timid interventions.

IGNORING INTERFACE MANAGEMENT

Large complex projects invariably, and appropriately, are divided into smaller component project scopes. When performed correctly, this is a very helpful tool. By dividing a large

project into smaller more manageable projects, however, the need to ensure the interfaces between the sub-projects are well synchronised becomes an important co-ordination effort. To be sure, it is not a trivial effort; it comes with being large and complex. Often, project leaders simply want to delegate this effort down to the component contractors. This invariably does not go well. Each contractor is reasonably looking out for their own interests, and this does not bode well for interfaces needing to synchronise on a large number of dimensions.

It is one thing to have roadways match up at interfaces and piping connections that match in specifications, sizing, and flange ratings, but interface management does not stop there. It includes wiring, control logic, and fluid flow rates and pressure, both in equilibrium, as well as transient conditions. Interface management is something the owner wants to keep close and monitor its progress diligently.

IGNORING THE “SUPPLY OF EVERYTHING” PROBLEM

Large complex projects at their heart are a supply problem. The rate at which these type of projects consume resources is unequalled. Their appetites can be

likened to tsunami waves. It’s impossible to understand the resources they will consume in a set amount of time. The demand for everything a typical project needs increases: people, experts, buyers, engineers, designers, materials, specialised equipment, construction inspectors, decision making by decision makers, cash flow, space. Name it, mega and giga projects need it in quantities that will tax most global supply chains.

As a minimum, analyse the size of purchases and the potential impact they will have on suppliers. Assess the capabilities and bench strength of the organisations being drawn upon. Sometimes it may be desirable to standardise on a particular supplier or equipment type, only to find out they do not have the capacity to meet the need at the scheduled time. Assess vulnerability to these types of supply chain constraints early, and then assemble mitigation plans. Failure to do so is like racing in a fog.

FAILURE TO COMMUNICATE, COMMUNICATE, COMMUNICATE

On a typical large complex project, a leader can send out an email, then follow up at the weekly team meeting to ensure everyone got and understood the message. Scale this up to mega or giga, and many project teams are now involved, located in different contractor offices, all wanting to be left alone to execute their project, and yet they need to remain synchronised on a large number of topics.

There are interfaces, equipment and design specifications, schedules, contract terms and interpretations, learnings from other teams; the list goes on. What works for effective communications on a single large project is simply inadequate when things scale up to a large complex endeavor. Multi-dimensional communication paths must be developed to support this massive synchronisation effort. Without this, disintegration and confusion will naturally develop.

FAILURE TO PROVIDE TRANSITION LEADERSHIP

Projects are composed of a number of serial phases or stages. An inherent sequence is found in all project work.

Early formations of objective ideas give birth to site and technology decisions that are defined in more detail via FEED work and deliverables. After FEED, design work follows and is integrated with procurement and delivered to the site for construction activities. Those activities are followed in a structured sequence by turnover and startup efforts. Such work processes have natural transition points in them, e.g., FEED to design.

Each of these transition points is typically surrounded by each team member’s assumptions about what will happen next and how. Of course, these assumptions are built on each individual’s past experiences, which may or may not be similar. Transitions like this have a way of exposing each team member’s differing views as to how each transition will transpire. When transitions are scaled up to a large complex project, chaos often ensues, even when each team has achieved alignment internally. It is doubtful such alignment will naturally occur across all the sub-project teams.

To tackle this particular challenge requires the use of ‘transition

leadership teams’. Such teams are composed of the natural leaders from among all the sub-project teams, who then poll all members about their needs and expectations for each transition. Then everyone knows about deliverables, action items, and alignment efforts. They will also know how it will happen and how each action will affect them. Transition leadership teams are an effective tool for handling the roughwater rapids of project transitions.

TO SUMMARISE

Large complex projects, often referred to as mega or giga projects, are prone to above-average failure rates due to their many additional vulnerabilities when compared to smaller projects. We’ve explored some pitfalls to which these large projects are especially susceptible. When planning for such a project, specific plans and resources are definitely required to help protect against these pitfalls. Finally, and equally important, while these pitfalls may be more impactful on mega/ giga projects, they are also, of course, relevant on any size of project.

The Kingdom’s future global

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Real Estate Repercussions

JLL’s Barry O’Reilly discusses the ripple effect of Saudi Arabia’s construction boom on the UAE’s real estate market MIDDLE EAST

Since the launch of Saudi Arabia’s giga projects, the Kingdom has emerged as a key driver in the construction sector in the Middle East. In fact, 39% of the MENA project pipeline is in KSA, with activity forecast to experience 4% growth each year between 2024 and 2027. According to the Saudi Contractors Authority (SCA), the building and construction sector contributes 6% to GDP, making it the second-largest non-oil sector in the country.

While it presents unprecedented economic opportunities for KSA and the region, the high concentration of multiple colossal developments, at

various design and development stages, has strained the construction activities of the nation and neighbouring countries. This includes mature markets like the UAE, where the demand for talent and staff retention has intensified, and supply chain pressures have increased. As a result, businesses must rethink their operating models and project delivery approach to remain competitive.

TALENT

Staff retention in the UAE has become a major challenge, due to the highly competitive salaries, benefits, and compensation packages offered to attract talent to Riyadh. According to the Ministry of Finance’s 2024 budget

statement, the Kingdom has created 1.12m jobs in the private sector.

In the past, working in KSA was more niche: it traditionally attracted young, single individuals who were willing to earn a higher salary and gain experience working on some of the world’s most ambitious and exciting projects. However, with the rapid modernisation and social changes in recent years, cities like Riyadh and Jeddah are becoming more attractive to expats, with shopping malls, restaurants, parks, sports facilities, and recreational amenities; they are attracting an increasing volume of talented and experienced individuals, who now feel happy to relocate their families.

Developers and contractors in Saudi are also placing increased pressure on staff to live in the Kingdom, thereby reducing the opportunities for staff to base themselves in the UAE and commute to KSA on a ‘fly in, fly out’ basis.

The increased attraction from KSA is creating challenges around the retention of key staff, as well as inflating salary levels in Dubai and Abu Dhabi. Companies need a new approach to talent acquisition, rewards and performance to retain their business advantage. For years, companies in the region have been vying for the same limited pool of qualified professionals. However, in the Middle East, there exists an incredibly diverse population in terms of nationality, race, ethnicity, age, and experience, which represents a significant untapped talent pool. Unfortunately, this potential is often overlooked due to gender, racial or age stereotyping, stemming from ingrained cultural norms and societal expectations.

Moreover, implementing transparency and merit-based compensation packages and fostering an inclusive work environment that prioritises employee

Homebase Developers and contractors are placing increased pressure on staff to live in the Kingdom, which is reducing opportunities for staff to base themselves in the UAE and travel on a ‘fly in, fly out’

basis.

Experienced operator

Barry O’Reilly is Head of Project Management and Project & Development Services UAE, JLL.

satisfaction can significantly contribute to talent retention. Companies can make investments in training and development to upskill their workforce and enhance employee engagement.

SUPPLY CHAIN PRESSURES

Pressure on the global supply chain has been an issue since the pandemic and has been prolonged by recent cross-border conflicts. As a result, there have been delays caused by the closure of trade routes, a surge in demand for locally sourced products, and escalating prices.

The increasing demand for construction materials for Saudi’s gigaprojects has intensified competition, raised prices, and extended project timelines in the UAE. These challenges, coupled with ambitious project schedules across the region, have led to resource scarcity and rationing.

However, it is important to note that this situation is likely temporary, and efforts are being made to streamline the supply of locally sourced materials within Saudi Arabia through prefabrication and modular construction. In the meantime, many materials initially allocated for the UAE are being redirected to the larger projects in Saudi Arabia.

To reduce the impact of supply chain disruptions, companies must get around what’s traditionally been their way of approaching supply chain and manufacturing. Apart from diversifying suppliers and developing contingency plans, technology adoption can provide insights to anticipate and mitigate disruptions. Consider repurposing or recycling existing and surplus construction materials to reduce the strain on natural resources and decrease the industry’s reliance on raw materials procurement,

while simultaneously fostering a more eco-friendly and resilient sector.

Rather than disposing of used or excess materials in landfills, the establishment of green building material exchanges enables companies to engage in buying, selling, or donating these materials. This approach not only extends the lifespan of materials but also promotes the circular economy. By embracing these practices, the industry can also make significant strides towards a more sustainable future.

HUMAN-CENTRIC DEVELOPMENTS

The implications of these cost increases in the sector resulting from an increase in labour and material costs presents a unique opportunity for innovation and differentiation. Developers are staying ahead by integrating cost-saving measures and sustainable practices into their projects to attract a new segment of investors and buyers. This includes repurposing ageing or underperforming buildings and focusing on creating sustainable, inclusive communities with a focus on wellness. By reusing existing structures, developers can preserve architectural heritage and reduce reliance on new construction, benefiting both the environment and their bottom line, while increasing speed to market. Additionally, community developments prioritise connectivity, featuring walkable neighbourhoods that promote social interaction and provide easy access to amenities. These developments are designed to cater to changing lifestyle preferences and are expected to have high demand and long-term sustainability.

While Saudi Arabia is expected to maintain its influence on the region’s construction activities, the UAE market remains immensely appealing to real estate investors and individuals choosing the UAE as their permanent residence. Accodring to JLL’s UAE Construction Market Intelligence Q1 2024 report, the UAE stands out with a high-value pipeline of $590bn in the Middle East and North Africa’s projects market, with residential projects accounting for $125bn (21%), and mixed-use projects representing $232bn (39%).

A vision for urban mobility in the Middle East

Urban planners in the region will need to use innovative design strategies to create even tighter neighborhoods, while forecasting future societal habitation trends as far as ten years down the line says Gensler’s Steven Velegrinis

The Middle East is at a critical juncture in its development. Rapid urbanisation has brought prosperity and modernisation but also significant challenges, particularly in terms of traffic congestion and environmental impact. Urban mobility remains a critical element of city life as it impacts its residents, the environment, and affects the value of real estate.

Whilst the idea of compact neighbourhoods is hardly new, the 20-minute city concept offers one, forward-thinking, solution to these issues. By designing cities where residents can access work, education, healthcare, and leisure within a 20-minute walk from any point in the neighborhood, we can significantly reduce our reliance on cars, thus alleviating traffic congestion and cutting down carbon emissions.

Other solutions present as critical for improving urban mobility as well. Enhanced public transport systems and last-mile mobility services play a vital role in creating a seamless urban experience. Efficient and reliable public transport options, such as buses, trams, and metro

systems, reduce the dependence on private vehicles. Investment in public transport infrastructure ensures that cities can accommodate growing populations without exacerbating traffic congestion.

URBAN PLANNING INITIATIVES

The UAE has been at the forefront of innovative urban planning. In a notable recent development, The Executive Council, chaired by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, convened at the 2024 Arabian Travel Market, to approve a new traffic plan centred on remote working. The plan aims to ease congestion and improve traffic flow on the roads, showcasing Dubai’s proactive approach to urban mobility challenges.

Expo City in Dubai stands as an existing example of the 20-minute city concept in action. This development was designed with sustainability and accessibility at its core. Expo City is a microcosm of what urban living can and should be in the Middle East. It boasts a mix of residential, commercial, and leisure spaces all within a 20-minute walkable distance. The infrastructure supports cycling

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and walking, with green spaces and pedestrian-friendly pathways integrated throughout the development. This design reduces the need for car travel, thereby decreasing traffic congestion and contributing to lower carbon emissions, so tackling, head on, immediate urban mobility constraints.

Another notable example is Msheireb Downtown Doha in Qatar. As the world’s first sustainable downtown regeneration project, it combines modern construction techniques with cultural and contextual precedents, focusing on the human experience and comfort in an arid climate. This meticulously planned area ensures easy access to essential services, promotes pedestrian-friendly spaces with wide sidewalks and shaded walkways and includes efficient public transport links.

The development unites a sense of community with retail, offices, a mosque, hotels, and both low-rise and high-rise residential buildings, significantly enhancing residents’ quality of life while reducing environmental impact by encouraging walking and public transport use over private cars.

WALKABLE CITIES

Within the Middle East, authorities are actively embracing the walkable city approach with regards to existing urban areas and those that have yet to be built. The Dubai 2040 Urban Master Plan recognises the significance of time in people’s lives and acknowledges that effectively managing and utilising time for commuting and meeting basic needs is a crucial pillar in enhancing the quality of life. Future projects like these are highlighting government support in urban mobility.

However, transitioning to a 20-minute city model is not without its challenges. In basic terms, our cities are not designed for cellular neighbourhood structures, and this means that to a degree, we will always need to move from one part of the city to another. The advancement of 20-minute cities requires significant

investment in infrastructure and a paradigm shift in urban planning.

By designing cities where residents can access work, education, healthcare, and leisure within a 20-minute walk from any point in the neighborhood, we can significantly reduce our reliance on cars, thus cutting down carbon emissions”

THE IMPORTANCE OF INTERLINKS

45,000

Expo City Dubai includes 10km of cycling tracks, a 5km running track and 45,000 sqm of parks and gardens

Policymakers and urban planners must prioritise mixed-use developments that integrate residential, commercial, and recreational spaces. There needs to be a concerted effort to enhance public transport systems and make walking and cycling more attractive and thermally comfortable options. Additionally, community engagement is crucial to ensure that developments meet the needs of residents and foster a sense of ownership and pride in their neighborhoods.

Last-mile mobility services, such as bike-sharing programs, e-scooters, and on-demand shuttle services, complement public transport by providing convenient options for the final leg of a journey. These services bridge the gap between public transport stations and residents’ homes or workplaces, making it easier for people to choose sustainable modes of transport. While in cities like Dubai and Doha, integrating these last-mile solutions with existing public transport networks has been effective within their 20-minute cities, enabling these links on a city-wide scale will be crucial for achieving a truly connected and efficient urban mobility system.

Looking beyond isolated neighbourhoods, society will always have the need to travel further than their immediate surroundings. To this end we must also consider interlinking options between neighbourhoods as well as alternatives to longer distance travel requirements. New modes of transport such as last mile, electric, autonomous, EVTOL Drones are being discussed in a more tangible way, with visible progress being made. This is a critical marker that it’s not only on urban planners to facilitate urban mobility improvements but the transport industry and government support as well. As we look to the future, with continued investment and a collaborative approach to urban planning, urban planners in the region will need to use innovative design strategies to create even tighter neighborhoods, while forecasting future societal habitation trends, as far as ten years down the line, given the average project timeline. The region is going to quickly push to the 20-minute city, meaning master planners need to feature smart mobility solutions that encourage sustainable and flexible means of movement, allowing people to travel safely and conveniently between their office and home, to airports and around the city.

Urban planning Expo City is a microcosm of what urban living can and should be in the Middle East notes Steven Velegrinis, Design Director, Gensler Middle East.

BY BUILDING THE FUTURE

Since 1975

Artificial Intelligence

Artificial Intelligence for Construction Quality

Implementing AI is crucial for achieving global goals related to construction quality, sustainability, and well-being says Heriot-Watt University’s

Dr. Mustafa Batikha

The use of Artificial Intelligence (AI) in the industry to improve product manufacturing began in the 1970s with the introduction of ComputerAssisted Design (CAD) and Computer Numerical Control (CNC), which aided in designing and refining products for better accuracy and optimisation. In the 1990s, AI expanded to capturing worker experiences and gathering data. Today, AI plays a crucial role in enhancing quality control, optimisation, robotics, predictive maintenance, and workplace health and safety.

The construction industry has historically been slower than other sectors in adopting modern methods of working. As a result, construction defects often lead to higher costs, management challenges, delays in project delivery, and issues related to quality, waste, and health and safety. Recently, there have been strong calls for the construction industry to

swiftly embrace digitisation to address these issues. Evidence suggests that implementing AI applications can significantly enhance the construction process. Beyond the potential economic boost of approximately two precent (US $1.6tn) to the global economy, digitisation supports global goals related to quality, sustainability, and well-being.

For instance, there is a strong push to adopt 3D Concrete Printing (3DCP) in building construction. The UAE has set a goal for 25% of its buildings to be 3D printed by 2030. This initiative highlights the advantages of 3DCP, including greater flexibility in architectural design, reduced material waste, and shorter project timelines. Additionally, 3DCP promotes a safer work environment and appeals to younger generations. It has also been shown to be more cost-effective, timeefficient, and environmentally friendly in reducing CO2 emissions compared to traditional construction methods. Machine Learning (ML), a subset of AI, is also making significant contributions

to the construction industry. It processes large datasets derived from real-case historical experiences to forecast potential issues such as project timelines and resource allocation. ML improves safety by predicting hazards before they arise and enhances quality control by detecting defects using sensors, thereby minimising the need for manual inspections.

Furthermore, building Information Modelling (BIM) is increasingly recognised as a powerful AI tool, providing a 3D virtual representation of a facility before physical construction begins. It allows subcontractors to contribute their input to identify and avoid potential faults, thereby reducing waste generation during construction. Additionally, BIM helps prevent project delays, potentially saving up to 20% of costs. Furthermore, BIM has become essential in Quantity Surveying (QS) for its ability to deliver fast and accurate cost estimates.

Digital twins are a significant application of AI in construction, representing a virtual replica of a physical asset. They enable real-time interaction with the physical property throughout the entire construction lifecycle. Digital twins enhance communication and coordination among project stakeholders, document project progress, and help in reducing costs and time. They also play a crucial role in verifying quality and ensuring worker safety. Given that the construction industry has the highest rate of worker injuries, AI offers promising solutions to address this issue. For instance, integrating computer-connected technologies on-site—such as drones, CCTV cameras, sensors, IoT-enabled wearables, two-way radios, and instant language translation tools can help identify unsafe conditions or behaviours that could lead to accidents.

While AI offers significant advantages to the construction sector, it is, as any new technique, challenging to take advantage of. Firstly, the traditional nature of the construction industry presents a barrier. AI is advancing rapidly, and there is a need to build trust among contractors by demonstrating the success of AI-implemented projects and illustrating its benefits.

Additionally, there are concerns about AI potentially displacing jobs. Due to automation, it is projected that 14% of global workers may need to transition to new professions by 2030. To address these concerns, it is crucial to focus on the social impact of AI and foster public trust in its transformation. Moreover, government strategies should allocate more resources to training and developing AI experts in construction to meet future demands.

Another significant concern is AI security against hackers and cybercrime,

which incurs additional costs and demands continuous surveillance. In the construction industry, even minor AI errors can have substantial impacts on quality, costs, and planning. The most critical risk is that such mistakes can result in accidents and loss of life. Therefore, further research is urgently needed to prevent high-level attacks.

One more challenge is the high initial cost of AI solutions in construction. For instance, using 3DCP instead of traditional methods requires additional expenses in terms of construction materials, machinery, and maintenance, which can be unaffordable for small firms. However, as technology becomes more widespread, its costs are expected to decrease.

Another question is the ethics and privacy concerns of integrating AI in the workplace. For example, automated monitoring can negatively impact employees, leading to stress, anxiety, and a loss of trust in supervisors. Therefore, new policies and regulations must be implemented to protect sensitive personal information.

Despite the initial costs, implementing AI in construction is crucial for achieving global goals related to quality, sustainability, and well-being. However, extensive research is still needed to mitigate its drawbacks.

Tools of the trade BIM is increasingly recognised as a powerful AI tool, providing a 3D virtual representation of a facility before physical construction begins says Dr. Mustafa.

Advocating for technology Dr. Mustafa Batikha, Assistant Professor, Civil Engineering at Heriot-Watt University Dubai.

ZāZEN Properties hands over ZāZEN Gardens

The project will generate 390,000kWh of energy via an onsite solar facility and reduce 470 metric tonnes of carbon emissions annually

ZāZEN Properties has handed over its ZāZEN Gardens development, which is billed as the UAE’s first LEED Goldcertified residential development. The 155-unit project is said to represent a

significant milestone in sustainable urban development and aligns with the UAE’s Net Zero 2050 vision.

The project is said to set a new benchmark for eco-friendly living in the region and is expected to reduce approximately 470 metric tonnes of carbon emissions annually, and generate nearly 390,000kWh of onsite solar electricity each year.

“Our commitment to building for the future and fostering better living experiences has been a guiding principle through every step of this project. We are immensely proud of the team’s relentless dedication to build high quality, sustainable, community centric developments. With the help of our partners, we have completed this project in just 18 months to rave reviews and awards. We are proud to deliver on our promise and set a benchmark with every

155 Total number of units in the residential project

project we take on. With ZāZEN Gardens we are raising the bar in the Al Furjan community just as we did in JVT,” stated Madhav Dhar, Founding Member, and COO of ZāZEN Properties.

He added, “At ZāZEN, we see the real estate market as integral to Dubai’s visionary future. Achieving sellout at ZāZEN Gardens, just six months after the project’s launch showcases the new and rapidly increasing appetite that consumers have for high quality residential developments that balance quality, community and sustainable living. Therefore, the sustained success of real estate hinges on continual growth and progressive initiatives that add value to the buyers and investors in the market. With upcoming projects prioritising quality of living and connectivity, Dubai’s real estate sector is set to transform and grow.”

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