Big Project ME February 2022 by CPI Trade Media

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February 2022

MEConstructionNews.com

THE BUSINESS OF CONSTRUCTION

Breaking Boundaries

BIG PROJECT ME CELEBRATES THE BEST OF THE REGIONAL CONSTRUCTION INDUSTRY AT THE BIG PROJECT ME AWARDS 2021

CONTENTS

February 2022

ANALYSIS

FEATURES

INSIGHT

Event Review

Tenders

Progress report

The briefing

Trimble says the industry is moving towards subscription-based offerings and Husqvarna Construction predicts what’s coming in 2022

The big picture

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

Market report

Analysis

JLL provides a year-end review of the UAE real estate market

Project Profile Ashar Tented Resort

Big Project ME speaks to AW², about its work on the spectacular Ashar Tented Resort in AlUla, Saudi Arabia

Awards Coverage Big Project ME Awards 2021

Big Project ME celebrates the best and brightest of the Middle Eastern construction industry at the Big Project ME Awards 2021

Big Project ME recaps the events of the Construction Intel Summit - KSA Part 2, which was held online on January 26-27, 2022

Big Project ME, in association with ProTenders, provides the biggest tenders for the month of February 2022

Acciona completes construction of KSA’s Shuqaiq 3 desalination plant

Matthew Sexton of SAY Studio predicts some of the key themes for the GCC’s interior design and architecture spaces in 2022

MEConstructionNews.com | February 2022

WELCOME

Introduction

Building on Success

here’s no better way to start this month’s letter than by congratulating the winners of the Big Project ME Awards 2021, which was held on January 24, 2022, at The Raffles, Wafi Dubai. However, more than the fact that we had 23 award winners, I was delighted to see and meet so many new people and companies at the awards night itself, along with some familiar ones. This was reflected in a record 231 nominations this year, with new entrants coming from Egypt, Oman, Qatar, Iraq and Algeria – a reflection of the growing reach of Big Project ME and also a signal that the regional construction industry is getting back to its feet and is ready to showcase itself and its achievements. While I’m delighted and honoured that we had a wide range of nominees this year, I would like to mention that in 2022, it would be beneficial to all interested nominees to carefully read and follow the nomination guidelines on the awards

February 2022 | MEConstructionNews.com

website, and on MEConstructionNews. com, as this will give you the best possible chance of winning an award. To me, there’s nothing more disappointing than receiving a submission for a fantastic project, only to find that the nominees have skimped on the information or missed out on crucial elements that the judges would need to make an informed decision. For next year’s awards, I would love to see the same variety and breadth of submissions (if not more), but with a strong focus on showcasing the best of your projects and companies. Looking forward to the rest of this year, I’m quite excited by what’s in store. If all goes to plan, we’re going to be doing some expanding of our own, as I’m working closely with the events and conferences team to put together some interesting and thought-provoking ideas for a series of ambitious events and summits this year. Stay tuned for more details as you’re not going to want to miss out on being a part of what we’ve got planned!

Gavin Davids

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

COMPANY OF THE YEAR 2021 COST CONSULTING COMPANY OF THE YEAR

2015, 2016, 2018, 2019, 2020 & 2021

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THE BUSINESS OF CONSTRUCTION

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Editorial

Breaking Boundaries

BIG PROJECT ME CELEBRATES THE BEST OF THE REGIONAL CONSTRUCTION INDUSTRY AT THE BIG PROJECT ME AWARDS 2021

ON THE COVER

Big Project ME celebrates the achievements of the Middle Eastern construction industry with its annual awards night.

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The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication. The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority to CPI Trade Publishing FZ LLC. Printed by Al Salam Printing Press LLC. CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2022. All rights reserved.

February 2022 | MEConstructionNews.com

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Date

Venue

28 Feb

Raffles

RAFFLES / DUBAI / UAE

Honouring the champions of the truck and fleet sectors, rewarding outstanding performance 28 February 2022

About

2022

Winning an inaugural Truck & Fleet ME Award will be a recognised badge of excellence amongst clients and peers.

Open Voting Categories

Nomination Categories

These awards celebrate the champions whose vehicles play a key role in the operations, logistics and projects at the heart of the GCC economy. They award the manufacturers and dealers whose trucks lead the way – whose out-of-the-box innovations deliver critical commercial ‘edge’, day in, day out. They honour the achievements of the key players responsible for the industry’s dramatic post-Covid re-set.

z Heavy-Duty Truck of the Year

z Innovation in Mobility

The Event

MOST POPULAR

READERS’ COMMENTS

FEATURED

CONSULTANT

BIG PROJECT MIDDLE

Select Group launches new development in Dubai’s Business Bay

EAST AWARDS 2022 WINNERS ANNOUNCED

Congratulations to all the winners at this year’s Big Project Middle East Awards. Anyone who has received recognition this year can

CONSTRUCTION

truly pat themselves

Aldar and Diamond Developers combine forces to launch new $489mn sustainable community

on the back after a pretty challenging 12 months for all of us. Covid continues

INSIGHT: How a tumultuous 2021 is shaping the outlook for the year ahead

to cause difficulties even if it feels like the construction industry has learned to live with it over the past two

CONSTRUCTION

years. Hopefully we

35% of construction complete on Hatta hydroelectric plant says DEWA

can now start to look ahead and all being very well this could be the year where we see the light at the end of the tunnel. Talking of the future, I always look at the winners’ podium at

CONSULTANT

event like these as an

Heriot-Watt University Dubai Campus achieves LEED Gold certification

indication as to where the market is heading and it was great to see so many of those collecting awards were doing it on behalf of companies that are serious about safety

CONSTRUCTION

Damac announces second Paramount Hotel in Dubai February 2022 | MEConstructionNews.com

ANALYSIS: Magic Kingdom – The outlook for Saudi Arabian construction

and sustainability. Name withheld by request

THE BRIEFING

Software

Subscription for Flexibility MIDDLE EAST

The construction software industry is trending towards greater adoption of subscription-based offerings, says Paul Wallett of Trimble

ransitioning away from the traditional model of buying perpetual construction software licences, instead adopting a subscription-based approach to using software licences, is increasingly appealing more to construction firms. Shifting to a subscription-based licence model has proven to be a win-win for everyone. For the industry clients, it is more rewarding as it focuses more on the client’s convenience, savings, and long-term

February 2022 | MEConstructionNews.com

value. For Solution providers, this model generates higher revenue over the longer term, enhances customer value, and increases customer retention as well. As a global leader in construction technology, Trimble has recently shifted its offerings to a subscriptionbased licensing model, which has proven effective and welcomed by our clients across the globe. We have the new subscription trend in the Middle East as well, and feedback has shown the immense benefits

Tekla Structures, is available to users via three tiered subscription plans

THE BRIEFING

this model offers to both parties. Clients have begun to experience the benefit of the shift. Several months ago, we envisioned a strategy that bridged the gap between cost and productivity in the construction sector, and deliver better service to our clients and hence, the implementation of a subscriptionbased licensing model. Our clients can now generate the maximum value from their investments, and it has helped them manage their operational budgets and profit margins more effectively, Trimble’s new business model also works well for small and medium-sized companies in the engineering and construction sector. The affordable and flexible pricing of subscription options enabled these companies to employ technology for enhanced business efficiency. This shift is also driven by an industry-wide momentum towards converting majority of large capital investments to operational expenses for better flexibility and control over cash flows, and lower year-one costs. Today, our flagship software, Tekla Structures, is being widely used by users and is available via three subscription plansDiamond, Graphite, and Carbon. Furthermore, Tekla Structures subscription customers enjoy a wide range of benefits such as bigger discounts for multiple licenses, simplified financial planning, cheaper cost for upgrades, and reduced infrastructure requirements. Tekla Structures Diamond offers all the features of the flagship Tekla Structures, the Carbon version is for viewing and collaboration, while Tekla Structures Graphite is optimal for modelling and design documentation. The variants give the subscribers a freedom to choose the service that they feel is best suited to their type of workflows. This freedom and flexibility are major factors why customers find this model attractive as it gives control and options to the products or software. For instance, customer services can be easily

SME construction Trimble’s new business model works well for small and mediumsized companies in the engineering and construction sector.

cancelled when users are unsatisfied with the offering or find them too expensive. Further, this model makes it easy for clients to upgrade the solution and plan accordingly to the workflow requirement. Paul William Henderson, CEO, Le REVE LLC (3DE Global) says “Tekla

Structures Subscription Service has enabled us to grow without tying up a large amount of capital in perpetual licenses. Also, the new Diamond subscription has enabled us to increase our Rebar team because it is now included in the steel package.” Customers often opt for subscriptions because of the convenience factor coupled with options to personalise the solution. Personalisation is one of the things that clients nowadays demand to better suit their requirements and needs. Subscription model lets clients choose the level of service with tiered pricing structures and even tailored recommendations. This enhances services and support as software subscribers now feel more connected with providers and receive assistance for potential software-related concerns. Users are now entitled to guarantee assistance according to terms and conditions, and bugs are fixed as soon as they occur. On the side of the solution provider, this also opens opportunities to receive feedback that could help improve services and modify offerings in line with the needs of the target market. Alan C. Bebillo, (CSA Dept.) of Arabian Consulting Engineering Centre (ACEC) expresses: “We have been successfully working with Tekla Structures for the second year now. It has been a great experience as it has improved my team’s productivity and quality of work, offering the highest level of development. “The new subscription offering has made work even better by allowing us to work on multimaterial, fully detailed 3D models as the software is not limited by structural material,” he says. The transition away from traditional to a subscription model requires essential changes along with adopting an entirely new perspective on customer relationships. With this model, software companies do not just improve customer experience and increase retention, it also enables easy tracking and prediction that could guide clients in strategic planning. MEConstructionNews.com | February 2022

THE BRIEFING

Top Five Trends for Construction in 2022 MIDDLE EAST

Jeff Bennett, General Manager for Middle East and Africa region at Husqvarna Construction, shares his thoughts about what the industry will be focusing on during the year ahead

February 2022 | MEConstructionNews.com

he construction sector in 2021, despite bouncing back, remains a year of stringent regulations, labor shortages and higher construction expenses. The overall construction industry outlook for 2022 varies by country and region. For example, GlobalData expects a 3.2% growth for the sector worldwide in 2022. Staying on top of industry trends in building techniques and technology usage, therefore, is more important than ever. In 2022, the industry plans to be positioned as a more advanced, welcoming, and environmentally friendly industry. Jeff Bennett, general manager for Middle East and Africa at Husqvarna Construction predicts that 2022 will be a year that shows some common themes becoming more evident across the industry, globally.

SUSTAINABILITY AT THE CORE OF THE INDUSTRY

In the past, environmental sustainability and the energy-intensive construction industry didn’t often go hand-in-hand. As the world turns an eye toward sustainable means and solutions, construction industry must follow suit. In the present age of informed consumers, requests from construction companies often include sustainability specifications, especially if customers want to receive eco-friendly accreditations. Sustainable construction focuses on six principles: To Conserve, Reuse, Recycle/Renew, Protect Nature, Create Non-Toxic and High Quality. The growing concern for the environment and resources will see a significant impact on construction projects and construction machinery industry. There is an increasing demand for sustainability to reduce the carbon footprint throughout every stage of the construction process (i.e.,

THE BRIEFING

building, maintenance, demolition). Companies can measure the success of going green in construction through metrics such as lower operating costs. It is evident that sustainable construction industry trends in 2022 will remain a hot topic, especially as people become more concerned about climate change and how to mitigate it.

Analysis, USA is leading the adaptation of electrified machines by 58%. EMERGENCE OF DIVERSITY IN THE INDUSTRY

LEAPING INTO THE DIGITAL AGE

Automation is the key to solving a lot of challenges the industry is facing. Hence, it is no wonder that automation and robotics will be discussed at a greater level among industry leaders. The industry has been slow in adopting technology but 2022 should see a more modern industry take shape. Since the onset of the pandemic, automation and construction technology is showing construction industry leaders and allowing teams all over the world to do much more with less by leveraging powerful and innovative technology tools to increase productivity, efficiency and to enhance safety. WORKER SAFETY

Construction sites demand intensive work and safety is a huge concern in the construction industry with 21% of workplace fatalities taking place in the construction field. In 2018 alone, 1,008 construction workers died on the job from falls, being struck-by-object, electrocution, and caught-in/between hazards. Apart from codes covering construction, firms have to take note of regulations for workers’ safety. Many of these sites have respiratory hazards, such as vapor or particulates, which typically require the use of a hazard-specific respirator. Another safety measure that is needed to be incorporated is introduction of robots that can handle injury-inducing tasks, such as scaffolding construction and bricklaying. Construction robots, if used efficiently, have the potential to prevent accidents and transform the industry. Robotic innovation is taking centre stage and solving significant problems for the construction industry, i.e.: inspecting hard-to-access areas, heavy lifting, demolition, site preparation, and so on. From remote-controlled

Pushing forward With the use of modern building and design tools, the construction industry will evolve and push forward, says Jeff Bennett.

bulldozers and tele-operated excavators to demolition robots and autonomous compactors, these new technological advances will mitigate risk and make construction a safer industry all around. BATTERY OPERATED MACHINES

21%

Workplace fatalities take place in the construction field

Earlier, battery life and/or charging times were often viewed as limitations when it came to performance in the construction industry. Over the years, things have dramatically changed, and battery technology has enabled enhanced capabilities and more efficient power generation and utilisation. Battery-powered tools and lighter-duty equipment will become more commonplace. When it goes into action, it could reduce carbon emissions by as much as 95%. According to a report by Interact

When you think of an industry dominated by men, construction might be one of the first that comes to mind. However, there’s a continued emphasis on diversity in today’s society, and although women are minorities in the construction industry, they are valuable contributors. Of all the people working in construction, women comprise only 10.3%. Even smaller is the number of women on the front lines of a job site—only one for every 100 employees in the field. According to a report by McKinsey & Co most gender-diverse companies are 25% more likely to achieve above-average profitability than companies with less diversity. Organisations are shaping up for 2022 to be a year of growth for the industry and hiring more women is an optimal way to advance their diversity and capitalise on that expansion. Despite various barriers, women will continue to build their path in the industry. 2022 is anticipated to be another rewarding but challenging year, and the industry needs to be poised for growth opportunities. With the use of modern building and design tools, the industry will evolve and push forward.

MEConstructionNews.com | February 2022

THE BIG PICTURE

01 UNITED STATES

03 SWEDEN

Investcorp acquires Resa Power Investcorp, the Bahrain-based global alternative investment firm, has announced its acquisition of Resa Power, a US-based provider of missioncritical engineering, testing and maintenance services for electrical infrastructure, from Blue Sea Capital. Investcorp said that Resa, which is headquartered in Houston, is a leader in providing maintenance and testing, systems integration, and related distribution services to clients across the renewables, commercial, and industrial end markets in North America. The company has more than 20 locations across the US and Canada, it added.

Volvo Trucks launches enhanced version of electric truck 02 FRANCE

Vinci completes $5.5bn acquisition of ACS’s energy business Vinci has announced the completion of its acquisition of ACS’s energy business. The acquisition covers most of the contracting business of the ACS Industrial Services division; nine greenfield concession projects under development or construction (mainly electrical transmission networks in Latin America); and its renewable energy project development platform. The acquisition is a major milestone in VINCI’s strategy of creating a global leader in the energy sector and developing renewable energy concession projects.

Volvo Trucks has launched an enhanced version of its Volvo VNR Electric with up to 85% increased range and faster charging. The first generation of Volvo VNR Electric had an operating range of up to 240 km (150 miles). Now an enhanced version of the class 8 electric truck is launched, with an operational range of up to 440 km (275 miles) and increased energy storage of up to 565kWh. The improved performance is due to, among other things, improved battery design and a new six battery package option.

04 ITALY

06 SOUTH AFRICA

Italy’s Webuild Group wins $1bn contract for mega carpark in KSA

PMKConsult extends service offerings into Africa

Italy’s Webuild Group has announced that it has won a $1.07 =billion contract to build a multistorey mega car park for 10,500 vehicles in Riyadh, Saudi Arabia. The Diriyah Square – Package 2 Super-Basement Works contract includes a three-storey underground parking area with a total built up area of nearly 1 million square metres. The project has been commissioned by the Diriyah Gate Development Authority and will create more than 9,000 jobs; the statement added. The mega car park is part of the Diriyah Gate Development in Ad Diriyah.

February 2022 | MEConstructionNews.com

05 SENEGAL

Construction begins at Port of Sdayane in Senegal DP World and the Government of Senegal have laid the first stone to mark the start of construction for the new Port of Ndayane. The stone laying ceremony follows the concession agreement signed in December 2020 between DP World and the Government of Senegal to build and operate a new port at Ndayane, which is about 50km from the existing Port of Dakar. The investment of more than US$1 billion in two phases to develop Port Ndayane, is DP World’s largest port investment in Africa to date, and the largest single private investment in the history of Senegal.

PMKConsult has extended its services to the African continent following the signing of a multilateral agreement between Africa-based specialist entities Crane Group Consulting and Property Solutions Africa (PS Africa). The agreement is said to cover real estate transaction advisory delivered by PS Africa, with commercial and project management consultancy delivered by Crane Group Consulting and PMKConsult respectively. PS Africa has witnessed significant increases in large multinational real estate enquires into Africa in the past several years.

THE BIG PICTURE

02 04

07 08 05

08 SAUDI ARABIA

Acciona hands over 450,000cu/m IWP plant to SWPC 07 SAUDI ARABIA

KSA’s Al Yamamah Steel wins $78m SaudiEgypt border order Al Yamamah Steel Industries Company, a Saudi-based company, has announced that it has won two orders worth $78 million from Hyundai Engineering and Construction Company for the supply of steel towers for the construction of electricity transmission lines for a key project on the Egyptian border. The first contract covers the supply of steel towers for the construction of a 380KV line running between the new Afif BSP and Mahd BSP, while the second contract is for the construction of a 500KV electricity interconnection project between Saudi Arabia and Egypt.

Acciona has handed over the Shuqaiq 3 Independent Water Project (IWP) to Saudi Water Partnership Company (SWPC). The firm was the engineering, procurement and construction (EPC) contractor for the IWP desalination plant, which can produce 450,000cu/m of potable water per day. The project also includes the EPC of a large electrical special facility to feed the plant with power and some other additional installations from the existing power plants in the vicinity, The seawater reverse osmosis (SWRO) desalination plant is said to be working at full capacity.

09 UNITED ARAB EMIRATES

BUTEC acquires all 17 companies of ENGIE Group in Africa BUTEC Group, the Dubai-based construction and services group, has announced the signing of an agreement to acquire all 17 companies of the ENGIE Group in Africa. BUTEC said that these services are in more than 15 countries across Africa, with more than 1,500 employees. They are mainly carried out by ENGIE Services Maroc in North Africa, ENGIE Services Côte d’Ivoire (Tieri), Afric Power and ENGIE Burkina Faso in Western Africa, and ENGIE Ampair/ Thermaire in Southern Africa.

MEConstructionNews.com | February 2022

THE BIG PICTURE

14 10

13 15

18 16 17

10 EGYPT

Borouge partners with Krah Misr on $1.27bn Bahr Al Baqar Wastewater Treatment Plant

Borouge has announced a partnership with Krah Misr to supply infrastructure solutions for the world’s largest wastewater treatment plant, Bahr Al Baqar Wastewater Treatment Plant in the northwest of Egypt. The USD$1.27 billion plant will boost Egypt’s water resources used to irrigate agricultural land, while decreasing the risk of contaminated water entering agricultural, industrial, and municipal water. Borouge and Krah Misr will supply spiral wound polyethylene pipes.

February 2022 | MEConstructionNews.com

12 SAUDI ARABIA

11 SAUDI ARABIA

KSA’s Alakaria agrees $109m financing agreement with AlJazira Bank

Saudi Real Estate Company (Alakaria) has announced that it has signed an agreement with AlJazira Bank to secure sharia-compliant bridge financing facilities worth $109 million towards the purchase of a key plot of land in the AlMarjan region of the Kingdom. In a filing to Tadawul, the Saudi bourse, the company said that the banking facilities will be used to finance a part of the land’s purchase. The plot, located in Al Qadisiyah District/AlMarjan, is worth a total of $193.8 million (excluding the real estate transaction tax and broker’s commission).

Tasfiah announces $1bn sale of Al Qatif beach in KSA’s Eastern Province Saudi Real Estate Contributions Commission (Tasfiah) has announced the successful sale of the Al Qatif beach, for $1 billion in a public auction in the governorate of Al Khobar, in the Kingdom’s Eastern Province. The beach covers more than five million square metres on Tarout Island, one of the oldest settlements in the Arabian Gulf. The deal is one of the largest real estate transactions in the Kingdom. Tasfiah said that so far, a total of $3.99 billion has been reached as a return to shareholders through its public auctions and sale of land contributions.

THE BIG PICTURE

14 UNITED ARAB EMIRATES

13 UNITED ARAB EMIRATES

Shurooq inks deal with Marriott International for East Coast projects The Sharjah Investment and Development Authority (Shurooq) has signed a franchise agreement with Marriott International for the opening of two hospitality projects on the emirate’s East Coast. The agreement, signed by Shurooq’s Sharjah Collection & Hotels Management, marks the debut of Marriott’s Autograph Collection in Sharjah. According to a statement, two of Shurooq’s new hospitality projects in Kalba and Khorfakkan under the Sharjah Collection & Hotels Management will operate under the Autograph Collection brand.

Marjan and Wynn Resorts join forces to bring gaming resort to RAK Marjan, RAK Hospitality Holding and Wynn Resorts have revealed a multibillion-dollar plan to build an integrated resort development, including a gaming area, on the man-made Al Marjan Island in Ras Al Khaimah, UAE. The new resort is in the initial stages of design and development and will be applying for an integrated resort licence from Ras Al Khaimah Tourism Development Authority, US-listed international developer and operator of luxury resorts, Wynn confirmed in a statement.

15 UNITED ARAB EMIRATES

Concrete works on Uptown Tower reach peak Besix has announced that concrete work on the Dubai Uptown Tower has reached its 329m peak. The Belgian group said the project was nearing its structural topping out, as well as 90% of façade completion. The tower will reach a final height of 340m and is being developed by Dubai Multi Commodities Center (DMCC), with the design provided by Adrian Smith + Gordon Gill Architecture. Works are being carried out under the supervisory management of Turner International Middle East, with WSP and Wood-Baggot as structural/technical and architectural consultants respectively.

17 UNITED ARAB EMIRATES

16 UNITED ARAB EMIRATES

60% of Saih Al Rahal Road Improvement Project completed Construction of the Saih Al-Dahal Road Improvement Project, which links Saih Al-Salam Road with Mohammed bin Rashid Al Maktoum Solar Park is 60% complete, Dubai’s Roads and Transport Authority (RTA) has announced. According to a statement, the singlelane road is being replaced by a dual carriageway extending 11km comprised of two lanes in each direction, along with a median and three roundabouts to ease the movement in all directions. The new road will link with the entry points of Al Qudra Lakes.

Robert Letts appointed as ISG business development director for Middle East

ISG, the global construction specialist, has announced the appointment of Robert Letts as director of Business Development for its Middle East business, succeeding David Cronin, who moved with ISG to the United Kingdom at the end of 2021 to taken on the role of Business Development Director, Science and Health, after three successful years with ISG in the UAE. Letts has 17 years of business development experience – 11 of those in the UAE, mainly in leadership roles.

18 PAKISTAN

Savills opens three locations in Pakistan

Savills has opened in three locations in Pakistan as of January 1, 2022. The real estate advisory firm, which formerly operated as Colliers International franchise in Pakistan, will join Savills with its 42-strong team. Established in 2007, the existing business will give Savills extensive national coverage, operating out of three offices in Karachi, Lahore, and Islamabad. It will form part of and further strengthen Savills’ market leading Middle East operation and connect both East and West with our regional businesses as we continue to grow our global network, said a statement from the firm.

MEConstructionNews.com | February 2022

MARKET REPORT

Industry outlook

UAE Real Estate Market – Year in Review UNITED ARAB EMIRATES

JLL end of year report finds that new work week, labour and visa laws are driving recovery in the UAE’s real estate markets

he office market in the UAE displayed signs of recovery in Q4 2021, following several months of muted activity, according to JLL’s 2021 year-end report. In Dubai’s CBD, improving demand for good quality office stock combined with relatively limited supply in this segment translated into Grade A rents increasing by 2% year-on-year to an average of AED 1,712 per sqm per annum. On the same basis, Grade A rents in Abu Dhabi also rose by 5% to an average of AED 1,650 per sqm. Towards the end of 2021, the UAE saw the introduction of reforms such as a change to the work week from Monday-Friday, aligning with global markets, as well as new labour laws and visa options. The report highlights that over the

February 2022 | MEConstructionNews.com

medium to long-term, such initiatives will help bolster the UAE’s competitiveness by attracting and retaining a skilled workforce and making it a more appealing location to live and work. “The pandemic-induced uncertainty about future business conditions and changes in employee preferences have underpinned a surge in enquiries for flexible space options such as serviced business centres,” said Khawar Khan, Head of Research for the Middle East, Africa & Turkey region at JLL. Occupiers have also expressed interest in good quality fitted office space in an effort to minimise capital expenditure due to constrained budgets.” In the residential market, a “race for space” and the relative affordability of villas and townhouses during the depths of the pandemic helped to stimulate the strong recovery in sales prices – a trend which extended into Q4 2021. This was seen in both Dubai and Abu Dhabi. Waterfront developments in Dubai, as well as villa projects in Abu Dhabi – particularly on Saadiyat Island and Yas Island – experienced solid demand from investors and end-users alike. The retail market registered a pick-up in footfall and turnover in Q4 2021. This has been attributed to various factors, including the success of the UAE’s vaccination programme which has led to easing

restrictions, a resumption of global travel, as well as the start of the Expo event in October 2021. Due to the uncertain economic climate, retail occupiers continue to push for incentives such as rent-free periods, contribution towards capital expenditure on fit outs and revenue-share options. On the back of the Expo event and strong leisure demand, Dubai’s occupancy rate reached 63% in the YT November 2021 – up significantly from 40% in the corresponding period last year. Over the same period, the city’s average daily rate (ADR) rose by 25% year-on-year to USD 150. Abu Dhabi’s occupancy rate rose to 66% in the YT November 2021, when compared with 60% a year earlier. Meanwhile, the capital’s ADR increased by 4% year-on-year to USD 92 in the YT November 2021. “The emergence of the new Omicron Covid-19 variant has prompted a wave of travel restrictions in the MENA region and other parts of the world. As a result, travellers and hoteliers will likely face an extended period of uncertainty. Still, our expectation is that the UAE’s hospitality market will continue its gradual recovery in 2022 as both business and leisure travel see further improvement as key source markets continue to relax travel restrictions,” concluded Khan.

MARKET REPORT

DUBAI RESIDENTIAL SUPPLY 2021

Total Stock

ABU DHABI RESIDENTIAL SUPPLY 2021

639,000 58,000

Total Stock (sq m GLA)

ABU DHABI RETAIL SUPPLY 2021

-4%

520,000

2.9m

Average Rental Rates

2022 Planned Deliveries (sq m GLA)

Total Stock (sq m GLA)

DUBAI OFFICE SUPPLY 2021

9.1m Total Stock (sq m GLA)

3.9m

Average Rental Rates

2022 Planned Deliveries (sq m GLA)

-5%

341,000

Average Rental Rates

2022 Planned Deliveries (sq m GLA)

ABU DHABI OFFICE SUPPLY 2021

70,000

Average Rental Rates

2022 Planned Deliveries

Total Stock

DUBAI RETAIL SUPPLY 2021

4.4m

-3%

273,000 9,000

Average Rental Rates

2022 Planned Deliveries

Total Stock (sq m GLA)

128,000

Average Rental Rates

2022 Planned Deliveries (sq m GLA)

Our expectation is that the UAE’s hospitality market will continue its gradual recovery in 2022 as both business and leisure travel see further improvement as key source markets continue to relax travel restrictions” DUBAI HOTEL SUPPLY 2021

58%

32,000

Occcupancy YT Nov21

Total Keys

DUBAI HOTEL AVERAGE DAILY RATE 2020-2021

ABU DHABI HOTEL AVERAGE DAILY RATE 2020-2021

2021 ADR

US$150

US$92

2020 ADR

200

US$88 200

150

100

US$120 50

Source: JLL, STR Global

Occcupancy YT Nov21

2022 Planned Deliveries

150

2022 Planned Deliveries

66%

1,200

100

140,000 16,000 Total Keys

ABU DHABI HOTEL SUPPLY 2021

MEConstructionNews.com | February 2022

ANALYSIS

Interior design

Key Takeaways from 2021 and an Outlook on the Interior Design Market for 2022 MIDDLE EAST

SAY Studio’s Managing Director, Matthew Sexton, looks back on a unique 2021 and ahead at the interior design and architecture space across the GCC

n 2020 the construction industry recorded a contraction of 10.4%, GlobalData predicted a growth to of 4.4% in 2021 however this figure has, to date only hit 2.2%. The industry

is expected to register an annual average growth of 3.9% between 2022 and 2025. As of June 2021, the total GCC construction project market was estimated to be worth US$3.2 trillion, covering buildings, infrastructure and industrial, along with the power & water, and oil & gas sectors. In 2022, residential, commercial, mixed use, airports, sports facilities, hotels, healthcare and education facilities, will be the largest contributors to the construction sector, with new contractor awards estimated at a value of $45.1billion, followed by oil & gas projects at $22.6 billion and infrastructure at $17.5 billion. The UAE and Saudi Arabia are at the forefront of construction contractor awards in 2022, which are expected to be worth $11.4 billion and $20.1 billion, respectively. Qatar, which is set to host the football world cup next year, will list $5.5 billion worth of building contracts.

February 2022 | MEConstructionNews.com

The UAE showed a decline in contract awards during Covid for the short term, however, the longterm outlook is relatively promising, as the government continues with infrastructure initiatives such as the Energy Strategy 2050, the Sheikh Zayed Housing Programme and the Dubai Tourism Strategy. Infrastructure projects are a key part of the UAE’s economic expansion as it looks to build efficient transport and logistics networks, as well as reliable supplies of clean energy. With over $1tn of construction and transport projects planned, and $58bn worth of construction contracts being tendered, Saudi Arabia is by far the region’s biggest construction market. The kingdom accounts for 54% of all construction projects planned in the GCC, and 54 per cent of those being tendered. The coronavirus has proven that academics and tech visionaries who

Changing dynamics The changing dynamics of the workplace have necessitated a rethink in how offices and workplaces are designed and built.

$3.2 trillion Total value of GCC construction project market as of June 2021

ANALYSIS

have been talking since the 1980s about the possibilities of remote work, were not exaggerating. After months of working remotely, we have all learned that most tasks and meetings function effectively without an office. Offices, however, offer more than just a place to work. It offers opportunities to socialise, share ideas, realise the intricacies of their job, and build trust with colleagues. Many innovative business ideas are born between encounters in the workplace – the water cooler talks. Today our requests for proposals are asking us to show how design, technology and management practices can be used to make tomorrow’s offices more effective as social, learning, and innovation spaces. Flexible working has taken the forefront in businesses, ongoing restrictions are still causing teams to be dispersed, a major new trend comes from the need to design the Hybrid Office. We have seen a shift from workplace to “culture space.” Post-pandemic finds the office will only secondarily be a place to carry out tasks or engage in routine meetings. As a result, employees will increasingly be working a hybrid office, moving between a homework assignment space and a traditional office building. The latter will become primarily a culture space, providing workers with a social anchor, facilitating connections, enabling learning, and fostering unscripted, innovative collaboration. With working from home, employees are becoming naturally accustomed to a more casual approach to their working days. This is mirrored in both the physical space and within company culture and patterns of behaviour. Many employees have been given access to an unprecedented amount of choice and can control when, how and where they work and will want this to continue. Many people will now be looking for a workplace that feels and looks more like a home-from-home. The combination of “resimercial” and commercial design features – resimercial – isn’t a new concept at all and is a design trend that has been gaining momentum for a number of years. The appeal of “resimercial” has gained momentum since employees were obliged to work from home.

The UAE is one of the best-placed countries in the world to lead the recovery from the Covid-19 pandemic. While sectors such as aviation and tourism remain deeply impacted, other key areas such as Dubai real estate and Abu Dhabi’s oil and gas projects sector are already growing. Top brands are now looking to Middle East hubs to define global trends, a recent project completed by SAY for PwC became the only commercial WELL Health-Safety Rated space in the Middle East and Europe, with the theme “office of the future.” This set the precedent for offices across the rest of the world. With the impact of Covid new office spaces all have a health & safety design requirement. The WELL Health and Safety seal is a mark of trust from the international WELL-building institute, the global authority on healthy buildings. Global brands are working to strict regulations in the design phase to achieve this. The seal can be seen on buildings which have set out to prioritise end user’s health and safety. This includes measures such as cleaning

Key learnings Matthew Sexton says learning how to harness the power of technology was a key lesson in 2021 for SAY Studio.

$20.1 billion

Saudi Arabia’s expected construction contractor awards in 2022

and sanitising procedures, air and water quality control, emergency preparedness programs and health services. Technology can’t be missed from the key learnings list from 2021. SAY Studios both adapted and created technologies for remote access, process facilitation for workplace and hospitality clients. The first big step taken was the adaptation of extended reality software which was applied across the UAE’s hospitality sector. The newly adapted software offers new and existing hotel operators, a real time rendering platform. The anticipated time saving, from conception to delivery, is as much as 80%, and a total cost saving of up to 50%. It’s always challenging when it comes to finalising a design along with specific materials, as this is traditionally done firstly through 3D visualization. This can be time consuming, especially when you factor in the number of revisions that are often required, coupled with the restrictions in numbers of people in a meeting, no-shows due to Covid contact and you have a much-delayed project. The adaptation of existing software is certainly not new, however, Say Studios with extended reality (XR) technology, has applied it to the design process which allows for a more immersive experience, thus reducing time spent “optioneering”. In implementing robust construction initiatives, the UAE has adopted a collaborative Public-Private Partnership (PPP) across the sector’s segments, including education, transport, and municipal works, to ensure efficiency and head start economic activities in the postpandemic era. With most of the UAE’s population inoculated, the region expects the hospitality and tourism industry to rise alongside global easing of travel restrictions. Being one of the world’s most sought-after travel destinations in 2021, the UAE will establish 11 new hotels at the end of 2021, primarily built by foreign players. The UAE boasts the highest sovereign credit rating of any country in the region and has made the most progress on Covid-19 vaccinations. It led the world throughout the pandemic in terms of the scaling-up of its testing infrastructure and the growth trajectory from halfway through 2021 is set to continue into 2022.

MEConstructionNews.com | February 2022

| MEConstructionNews.com | MEConstructionNews.com September February 2022 2021

PROJECT PROFILE

Ashar Tented Resort PROJECT NAME: Ashar Tented Resort LOCATION: Ashar Valley, Saudi Arabia CLIENT: Royal Commission of AlUla (RCU), French Agency for AlUla Development (AFALULA) DESIGN: AW² TOTAL BUILT UP AREA: 10,800sqm

At the Heart of Nature

STÉPHANIE LEDOUX AND REDA AMALOU SPEAK TO BIG PROJECT ME ABOUT HOW THE ASHAR TENTED RESORT HAS BEEN DESIGNED TO FIT INTO ITS SPECTACULAR SURROUNDINGS IN THE ASHAR VALLEY IN ALULA, SAUDI ARABIA | February | August 2022 MEConstructionNews.com MEConstructionNews.com 2021

PROJECT PROFILE

ocated in the desert of northwest Saudi Arabia, AlUla is billed as a cultural oasis and open-air living museum. The location is home to the Ashar valley, which has been chosen by the Royal Commission of AlUla (RCU), as one of the sites to develop the Kingdom into a world class tourist destination. Architecture and interior design studio AW² was selected by the RCU in partnership with the French Agency for AlUla Development (AFALULA), to design a luxury tented resort on an untouched site within the valley. The resort will be located 15km from the Kingdom’s first UNESCO World Heritage Site, Hegra. Accor, under the Banyan Tree brand, will operate the Ashar Tented Resort with 47 new high-end suites in addition to 35 renovated suites positioned on a neighbouring site, bringing the total number of units up to 82. Designed by AW², the new tented suites will be completed by a luxury spa and several gourmet restaurants. Here, Big Project ME speaks to Stéphanie Ledoux and Reda Amalou, partner architects at AW²

The main goal for this design was to create a communication bridge with the rest of the world, attracting visitors and allowing the world to experience the beauty of an exceptional natural environment” Key project site Ashar is one of the project sites selected by the Royal Commission of AlUla (RCU) to develop KSA into a world class tourist destination.

47 Total

number of new high-end suites

February 2022 | MEConstructionNews.com

Architecture Workshop about the design and delivery of the hospitality project. How did AW2 come to work on the Ashar project? What was the tender/ bidding process like and why was your firm selected over competitors?

We were selected to participate in a competition for the Royal Commission for AlUla. During the competition, both our design approach and our competences in hospitality projects were appreciated and led to us being invited to tender for Ashar Tented Resort, a project that the RCU was developing with AFALULA, the French Agency for AlUla’s Development.

Our contextual approach was favoured by the client, as a way to create a hospitality destination based on authenticity and heritage, and the RCU and AFALULA knew our successful track record to deliver this type of project. What did the client want to achieve with Ashar? What was the brief that AW2 was given and had to work with?

Ashar Tented Resort was conceived following the client’s request for an extraordinary place to stay in the heart of the AlUla region – a unique location that brings together the history, culture, and heritage of the Kingdom of Saudi Arabia

PROJECT PROFILE

in an environment that encapsulates the natural beauty of the desert landscape. The main goal for this design was to create a communication bridge with the rest of the world, attracting visitors and allowing the world to experience the beauty of an exceptional natural environment. The brief was very much linked to this, as the first major hospitality destination in the AlUla valley in a very environmentally sensitive site: Ashar. The main idea was that the project should be inserted into the site using a tented resort structure, connecting the project to the local Bedouin heritage. What did AW2 look to for inspiration on this project and how were these elements incorporated into its architecture/design?

The key to this project was incorporating the history and culture

of the Kingdom of Saudi Arabia into accommodation that would attract visitors from around the world. As a result, the stunning suites take inspiration from traditional Bedouin tents, acting as an expression of the region’s past and enabling all who come and stay to discover the country’s rich cultural, natural and historic assets. At AW2 we also look to find inspiration from understanding the essence of local places, through the discovery of local know-how and traditions, and through talking to the local people. What are some of the project’s unique features in terms of architecture/design?

The 47 tented suites have been designed in relation to the coves created by rock formations, situated to give extended views across the desertscape while

Natural wonder The Tented Resort’s elements include 47 tents featuring 28 onebedroom units, 15 two bedroom units and four three bedroom units, as well as amenities. It will feature a total builtup area of 10,800sqm.

28 Total

number of onebedroom units to be built at the resort

providing maximum privacy for guests. The resort blends seamlessly into the natural scenery of the Ashar Valley, while pedestrian trails through a landscape dominated with sand dunes creates an intimate experience, reinforcing the camping mindset of the location. What learnings from its other projects around the world did AW2 incorporate into the Ashar project? What learnings has AW2 taken away from this project?

Like with all our projects around the world, we focused on the qualities of the site to propose architecture integrated in a meaningful way. Our understanding of scale is another learning that we incorporated into the Ashar Tented Resort project – the ability to take into account the enormity of the site and create architecture that merges with

MEConstructionNews.com | February 2022

PROJECT PROFILE

the surroundings. This is something we have learnt over the years and through all the different contexts we have worked in: how to design a project that aims not to modify the site. We have also learnt through our work across the globe that a close relationship with the client is essential for understanding the ambitions for the future of the project, and that these are aligned with the process right the way through from conception, to design and ultimately construction. Our projects are always formulated as they develop as opposed to starting by describing the outcome, each of our projects is a testament to this design approach. In terms of what we have taken away from this project, we have a great deal of respect, humility even, for the beauty of this site. The use of local resources and reinterpreting a traditional desert

In harmony Guided by the Charter Report, Strategic Masterplanning Guidelines for AlUla and the Saudi Vision 2030, AW² says its design integrates and responds to the Kingdom’s ambitions.

10,800 Total built-up area of the resort site,in square metres

February 2022 | MEConstructionNews.com

structure have been learning experiences that have allowed us to get closer to the heritage and traditions of the region. What were some of the challenges the firm had to contend with while working on this project and how were they overcome?

As AlUla is currently in the development phase, the construction resources on the ground are still growing and so we have adapted to the local availability. The desert climate has also been a major consideration. We have studied the material choices to make sure the architecture is adapted to the heat. Most importantly, the design challenge has been to make sure that the project integrates into the site and doesn’t take away from it. What impact did COVID-19 have on the design/delivery of

this project? How did the firm overcome these challenges?

Due to the outbreak of the COVID-19 pandemic, it has unfortunately not been possible to travel to visit the construction site as much as our team would have been able to do under normal circumstances. This means we have had to find new and innovative ways to remain involved, even if we can’t be on the ground. In response, we have created a partnership with a local firm, so an architect is able to follow the construction on site for us and bridge the distance that the pandemic has created. How is this project being delivered; are the contractors using modular construction/3D printing technology/ offsite manufacturing etc?

Ashar Tented Resort is being delivered through a low environmental impact

PROJECT PROFILE

approach to design which is now a given on every one of our projects. This approach plays an integral role in all our concepts, from the scale of the masterplan down to the smallest interior details. For example, we used local materials and incorporated sun protection, natural ventilation, and limited energy use into the design at Ashar. Sustainability is critical to how travellers interact and enjoy a place; within the hospitality sector we are particularly keen to offer guests the option of sustainable tourism.

The suites take inspiration from traditional Bedouin tents, acting as an expression of the region’s past and enabling all who come and stay to discover the country’s rich cultural, natural and historic assets” approach, composed of a simple platform and solid structure protected from the sun by a canvas covering. This three-tiered design is made up of a natural colour palette, allowing the tented suites to disappear into the site, the main construction material will be compressed earth bricks – a local and natural resource. In this way, the architecture respects the desertscape, making sure the stunning scenery remains the centre stage. What role did technology play in the design/delivery of this project? Was any new ground broken in terms of the technology/tools used?

Due to the nature of the project, technology was less of a key factor as the design is linked to a traditional form of architecture. Technology mainly played a role in connecting us to the construction site at a distance when we were unable to physically travel. What are some of the project’s unique sustainable and smart features and what impact will they have once the hospitality project is up and running? What steps did the firm take to ensure that the project respected the surrounding area?

At AW2, over the last 25 years we have developed a bioclimatic

Design and delivery Stéphanie Ledoux and Reda Amalou, partner architects, AW² Architecture Workshop.

15 Total

number of twobedroom units to be built

What are some of the current/ emerging trends in the hospitality and travel sector, following the outbreak of COVID19? What impact have these trends had on existing/ new hospitality/tourism projects?

AW2 is lucky in the sense that most of our projects are based on the creation of unique experiences in particular contexts, where privacy is considered a key design feature, which is already Covid-compatible. We believe that Covid is likely to accelerate this trend, as people look for ways to establish healthy relationships to one’s surroundings. This goes hand-in-hand with a trend we have noticed recently, where there is a tendency, or desire even, to return to what is essential, using local materials, or reinterpreting traditional patterns and forms.

MEConstructionNews.com | February 2022

BPME AWARDS 2021

February 2022 | MEConstructionNews.com

BPME AWARDS 2021

Breaking Boundaries Big Project ME hosts the industry’s best and brightest for the Big Project ME Awards 2021 at The Raffles Wafi, Dubai, in celebration of the companies and projects that are setting new standards and pushing boundaries

he 2021 edition of the Big Project ME Awards was held at the Raffles Hotel, Wafi in Dubai, UAE on January 24, 2021, with 23 winners from the contracting, subcontracting, supplier and developer segments of the industry celebrating their achievements for the year just past. Amongst the big winners on the night were industry giants such as ASGC, ALEC, China State Engineering and Construction Corporation

Middle East, The Red Sea Development Authority, Diriyah Gate Development Authority, Voltas and The Arab Contractors, amongst many others. More than 230 nominations were submitted for this year’s awards – a record for the annual event – by companies from across the GCC and MENA region. Following a comprehensive first round of eliminations, the judging panel was presented with around 130 nominations to finalise their winners and shortlisted companies.

This process took place via a secure online meeting between the judges, which consisted of some of the leading experts from the regional construction industry. This year’s panel consisted of: • David Kinniburgh – General Manager, UAE for GHD • Ewa Juszczyk – Project Director at U+A • Dr Fadi Bayoud – Managing Director of Strategic Anchors • Farah Naz – Lead Specialist Services – Sustainable Solutions and ESG – Buildings & Places – Middle

East & Africa – AECOM • Isaac Coker – Head of Mechanical – Middle East – WSP Also on the judging panel were Gavin Davids, Head of Editorial and Content at Big Project ME, and Jason Saundalkar, Editor of Middle East Consultant. The partners for the 2021 edition of the Big Project ME Awards 2021 were: Gold Sponsors: ALEC and MTWO; Silver Sponsors: Hill International, HKA, Serco and Voltas, while the event’s Bronze Sponsor was kairnial.

GOLD SPONSOR

SILVER SPONSOR

BRONZE SPONSOR

ORGANISED BY

MEConstructionNews.com | February 2022

BPME AWARDS 2021

Project of the Year NOMINEES: • Address Beach Resort and Residences – Multiplex Construction • Aquaventure Water Park Expansion – Khansaheb • Manar Mall Promenade – Al Hamra Real Estate Development WINNER: • One Za’abeel – ALEC One Za’abeel was chosen by the judges as it is a benchmark for what is possible in construction.

The building is already an iconic addition to Dubai’s skyline, but also presented ALEC with immense construction and engineering challenges. “This is a very complex job and it’s breaking the boundaries of engineering,” says Theuns Erasmus, project direct of One Za’abeel for ALEC. “In 2022, the team is getting together to push One Za’abeel to completion, and we feel that this award is representative of the UAE, which is always pushing boundaries.”

Developer of the Year NOMINEES: • DAMAC Properties • Lootah Holding • Select Group WINNER: • Diriyah Gate Development Authority Diriyah Gate Development Authority was unanimously chosen for its work in delivering a sustainable and cultural destination that will reshape Saudi Arabia’s future. Over

the last year, the developer has moved forward into implementation and delivery phases, with more than $5 billion worth of contracts already signed. John W Murphy, chief development officer at Diriyah Gate Development Authority said: “The scale and history of this project really mark it out. There’s a history and connection through the royal family all the way through to today, and we’re building something new that will connect to the past.”

Best Pavilion at Expo 2020 Dubai NOMINEES: • Mobility Pavilion – ALEC • Opportunity Pavilion - ASGC • Sustainability Pavilion – ASGC WINNER: • Kingdom of Saudi Arabia Pavilion – ALEC ALEC’s work on the Kingdom of Saudi Arabia Pavilion at Expo 2020 Dubai was chosen by the judges due to it being an iconic and inspiring representation of the Kingdom’s future. February 2022 | MEConstructionNews.com

“It was a challenging project but it’s also a very inspiring project. It is a nation’s projection for the future, and they are really focused on sustainability and want to prove themselves as an entity,” said Darren Burke, senior contracts manager for ALEC. “There was huge collaboration between all those involved. Saudi Aramco led it on behalf of their government, and they were excellent collaborators. They were clearly focused and committed to delivering to the timeline.”

BPME AWARDS 2021

Contractor of the Year NOMINEES: • ALEC • China State Construction Engineering Corporation Middle East WINNER: • ASGC This was an extremely competitive category for the judges, who ultimately decided on ASGC due to its outstanding track record over the last year, but also for showing strong

growth and expansion, despite the challenges of the pandemic, as it expanded into Egypt in 2021. “I believe we did very well last year. We are a strong contributor to the construction industry’s development in Dubai, and we are also expanding in Abu Dhabi,” said Amir Yehia Boshra, senior project manager at ASGC after collecting the award. “We expect more with ASGC and we are trying to do our best to continue that – we are 100% looking to be better (next year).”

Civil Contractor of the Year NOMINEES: • The Arab Contractors WINNER: • China State Construction Engineering Corporation Middle East CSCECME was chosen by the judges for its exemplary body of work over the last year. The company has been involved in strategic projects that will support the economic development of the UAE.

These projects range from railway networks, highways and road networks, to support projects for Expo 2020 Dubai. “It’s nice to be recognised for our hard work over the last year. We always focus on the delivery to clients, which are always executed on time, with high customer satisfaction,” says Cheng Qianli, deputy general manager and project director – Civil & Infrastructure Division, China State Construction Engineering Corporation (ME).

Sustainable Government Department of the Year WINNER: • Etihad Rail Etihad Rail was selected as this year’s Sustainable Government Department of the Year for its overall focus on sustainability. “It’s a pleasure to win this award, and unexpected as well, but you are talking about the largest and biggest project right now in the UAE,” said Nashaat Al Badawna, executive director of Health, Safety, Environment

and Quality, Etihad Rail. “Sustainability is part of our DNA, so this tells part of the story. “I think we have proven what we are doing in terms of the environment. We have proven, in terms of construction, what we have saved. I believe that we have done a lot, but there is still a lot to do going forward. Last year was a bit of a difficult year, but in 2022, it is booming, and the project is going forward at full force.”

MEConstructionNews.com | February 2022

BPME AWARDS 2021

Sustainable Contractor of the Year NOMINEES: • China State Construction Engineering Corporation Middle East • The Arab Contractors WINNER: • ASGC ASGC was chosen as the winner for its overall focus on sustainability, as well as its extensive portfolio of delivered projects that have been developed with green building principles in

mind. Furthermore, as a business, it has implemented stringent and creative sustainability measures to ensure the buy in of employees. “I think we were chosen for this award because sustainability is our target for the company,” said Samuel Zaki, design director at ASGC. “We have been requested to look everywhere on how we can work closely to assure that all our projects are sustainable. This award will push us to go again and keep looking at how we can improve.”

Fit Out Contractor of the Year NOMINEES: • ACCIONA Cultural Engineering • Depa Interiors • Khansaheb Interiors WINNER: • ALEC Fit-Out ALEC Fit-Out was chosen by the judges for its outstanding delivery and detailing work on complex interior projects, highlighting it as one of the standout companies of the year.

MEP Contractor of the Year NOMINEES: • China State Construction Engineering Corporation MEP Division • LASCO MEP Works • Voltas WINNER: • ALEMCO The judges picked ALEMCO for their overall achievements this past year, which included the delivery of several high-profile projects at a consistent level

of quality and performance. “We regard ourselves as a Grade A contractor in the region and we have successful executed a number of key project, which is why I think we’ve received this award,” said Bjorn Viedge, commercial manager at ALEMCO. “We’ve got a couple of large projects to complete in the UAE, but we’re also looking at securing some work in Saudi Arabia, and we have a couple of exciting new business verticals that will be starting this year.”

February 2022 | MEConstructionNews.com

“I think we have received this award as our team has delivered an outstanding selection of projects. We’ve been very busy at Expo and have delivered a number of iconic projects there. We’re also working on a number of luxury hotels in the UAE,” said Tom Gilmartin, business development manager, ALEC Fit-Out, after picking up the award on the night. “Regionally, we have our first job in Saudi Arabia and we’re also in Qatar and Ethiopia as well.”

BPME AWARDS 2021

Sustainable Project of the Year NOMINEES: • New Delta Treatment Plant – Metito/Orascom/ The Arab Contractors/ Hassan Allam Joint Venture • The Coastal Village – The Red Sea Project – The Red Sea Development Company WINNER: • Mohammed Bin Rashid Library – ASGC The Mohammed Bin Rashid Library combines cutting edge

technology with innovative design and planning to be one of the most sustainable buildings in the region, if not the world. Certified as LEED Platinum, the judges recognised the work put in by ASGC’s project team, terming MBR Library as one of the best examples of sustainable design in the region thanks to engineering that has ensured it will function with low levels of water consumption and energy usage, while it has also been built with low-emission building materials.

Smart Project of the Year NOMINEES: • Dubai Digital Park – China State Construction Engineering Company Middle East • Etihad Rail Al Faya Station Depot Leak Detection System - PermAlert • Mahsma Water Treatment Plant – Hassan Allam WINNER: • Workforce/Vehicle Monitoring Locator – The Red Sea Project – The Red Sea Development Company

“This is a smart technology that ensures the safety of the contractor workforce on site. We have between 13,000 and 14,000 workers on site, and we need to know where they are at any moment in time, for their safety. We have a geography of 28,000 square kilometres, and we need to know where people are so that no one gets left behind. It’s also partly a security access to the site,” said Ian Williamson, chief project delivery officer for The Red Sea Development Company.

MEP Project of the Year NOMINEES: • Dubai Digital Park – China State Construction Engineering Corporation MEP Division • Expo Village 7 – China State Construction Engineering Corporation MEP Division WINNER: • Oman Across Ages Museum – Voltas The judges were hugely impressed by the Oman Across Ages Museum, whose MEP

work was carried out by Voltas to a world-class standard. “The Oman Across Ages Museum is a very unique project because it’s one of the few world-class facilities in the country, and that too in a remote location like Nizwa,” says AR Suresh Kumar, head of Voltas International Operations. “This is a job that came with a huge amount of BIM coordination, with structural engineering and all kinds of different, complicated elements.” MEConstructionNews.com | February 2022

BPME AWARDS 2021

Infrastructure Project of the Year NOMINEES: • Al Shindagha Corridor Phase 2D Improvement – China State Construction Engineering Corporation Middle East • King Salman Energy Park - SPARK • South Helwan 3X650MW Supercritical Thermal Power Plant – Hassan Allam Holding WINNER: • Cairo Metro Line 3 – Phase 4B – The Arab Contractors

The judges felt that the Cairo Metro Line 3 – Phase 4B project stood out for its sheer complexity and scale. “This is one of the mega projects in our portfolio,” said Hamdi Ahmed Hassan, general manager of The Arab Contractors’ Dubai branch. “It’s an underground metro and there are many challenges, especially when you are working underground. There are many surfaces and a lot of engineering. It’s a unique project.”

Fit Out Project of the Year NOMINEES: • Milium International – Horton Interiors • Parliament Building – The Arab Contractors WINNER: • Mobility Pavilion – ALEC Fit Out The judges highlighted the stunning interior works of the Mobility Pavilion and ALEC Fit Out’s work in delivering such a complex and impressive project.

“It’s no surprise that the Mobility Pavilion won Fit Out Project of the Year. It’s a world class project in the region and it demonstrates a lot of things – technology, digital and immersive experiences. It’s actually a movie that takes visitors on an incredible journey, using sound, music and media production to tell a lovely story,” said Walid Zarzor, project director for Mobility Pavilion. “It’s set the benchmark for experiential projects in the region.”

HSE Project of the Year NOMINEES: • Al Shindagha Corridor Phase 2D Improvement – China State Construction Engineering Corporation Middle East • Dubai Exhibition Centre – Expo 2020 – Voltas WINNER: • The Red Sea Project – The Red Sea Development Company The Red Sea Project was recognised for its innovation and forward thinking, as February 2022 | MEConstructionNews.com

well as for its high standards of risk management. Andrew Tyson, head of construction for TRSDC, said: “I think we’re looking to bring a new level of health and safety, environmental and management standards to the way things are done in Saudi Arabia. We have 13,000 workers on site now, and by the end of the year, we should be up to the 20,000 plus mark. The project is growing and evolving and work on health and safety is never done.”

BPME AWARDS 2021

BIM Project of the Year NOMINEES: • Bahr El Baqr Water Treatment Plant – The Arab Contractors • Expo Water Feature – Techture WINNER: • Downtown Views II – China State Construction Engineering Corporation Middle East The judges felt that Downtown Views II deserved the trophy because of how successfully BIM is utilised through its lifecycle. The data generated by the many

construction processes has been handed over to the operator and facilities manager, as well as to the client, to ensure that the O&M phase is done properly. “This was a very big and challenging project and BIM supported us during it. The project is located near Downtown Dubai and Dubai Mall, and covers around 300,000 square meters, so BIM was essential in delivering it. It was very hard work,” said Chen Haizhang, Downtown Views project director for CSCECME.

Excellence in BIM Implementation for the Year NOMINEES: • China State Construction Engineering Corporation Middle East • Multiplex Construction WINNER: • ASGC ASGC was chosen by the judges for its successful approach to BIM. Its comprehensive approach to implementing technology across its organisation is what

pushed the judges to vote for it as the winner of the award. “We won this award because ASGC is doing massive work and we have very talented people using BIM for all of its lifecycle from the beginning to the end,” said Bassam Bisha, Technical Director of ASGC. “For the year ahead, there will be a push to use BIM increasingly for facilities management because it’s a very powerful tool that we will need to utilise more effectively.”

Skills Development Programme of the Year NOMINEES: • The Hassan Allam Talent Programme • Institute of Construction Engineering and Management Technologies – The Arab Contractors WINNER: • Tahadiy Initiative – ALEC “It’s really nice (to win this award) because we’ve been working a lot on this project,”

said Mariano Genzone, People and Culture – operations manager at ALEC. “It is basically an innovation programme, jointly done between the Innovation Team and the People and Culture Team at ALEC. “It’s a combination of mentoring, innovation, and also of learning on the journey. The end result is not only the output, but also the journey and that was the main intention of the programme.”

MEConstructionNews.com | February 2022

BPME AWARDS 2021

Product Innovation of the Year NOMINEES: • Ares Prism at Qiddiya – Ares Prism • Tenderd App – Tenderd • TFS Compliance – Joule Group WINNER: • DuPod Smart Pod – DuPod, an AMANA Company The judges felt that the DuPod Smart Pod is an innovative product that will help build projects more sustainably and efficiently.

“This award translates into a lot of effort that has been done in product innovation in our group,” said Ihab Ramlawi, managing director and cofounder of DuPod, an AMANA Company. “Two years ago, we started working on a product that introduced the Smart Pod. This includes sensors that can track the consumption of water and heating, and so on. This is why this product is very important and why we are very proud to get this award.”

Sustainability Programme of the Year NOMINEES: • The Red Sea Project – The Red Sea Development Company • Reusable Asphalt Materials – The Arab Contractors WINNER: • Green Workforce Accommodation – ASGC ASGC’s efforts were recognised by the judges because their Green Workforce Accommodation programme represented how

Big Project ME’s Technology Champion of the Year WINNER: • DuBox, an AMANA Company This award was presented to DuBox because the Big Project ME editorial team felt that the company best exemplified the marriage of technology and construction. A 100% home-grown UAE company, the innovative firm has come to market with a mandate to disrupt traditional construction processes, while

also raising the quality of the regional built environment. “Winning this award is another badge of honour for the company. This is very prestigious award and it’s a sign of an increasing awareness and acceptance of modular construction which is industrialised construction that allows for the construction process to happen in a factory, under factory provisions,” said Riad Bsaibes, president and CEO of AMANA Investments.

February 2022 | MEConstructionNews.com

the integration of sustainability principles at the very base of their operations, while still keeping worker welfare at the forefront. “I think that ASGC is the first company in the UAE – maybe the Middle East – to build this kind of labour accommodation to these green building standards. It is high quality and high standard,” said Yossry Kostantien, facilities director at ASGC, adding that the programme is in line with Dubai’s sustainability ambitions.

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BPME AWARDS 2021

BPME Female Executive of the Year NOMINEES: • Anita Nouri – Green Energy Solutions Sustainability • Samantha Rowles – Serco Middle East • Sandra Woodhall – Tangram Gulf WINNER: • Susy Aryani Singgih – Lootah Holding Singgih won over the majority of the judges due to her vast amount of experience at the highest level of corporate governance and international expertise, in both the private and public sectors. Singgih is the Group General Counsel for Lootah Holding, as well as the Group Chief Operating Office. As part of her remit, she has been tasked with improving the group’s engineering

BPME Male Executive of the Year NOMINEES: • Jonathan Timms – Diriyah Gate Development Authority • Laurent Farge – ALEC Fit-Out • Michael Ghanem – LASCO MEP Works WINNER: • Ian Williamson – The Red Sea Development Company The judges chose Ian Williamson as the Male Executive of the Year because of his outstanding work in leading a team of both internal and external stakeholders towards the delivery of The Red Sea Project, a visionary sustainable tourism destination that is one of the biggest and most eye-catching in the world. “We got this award for working on a fantastic project that is transforming Saudi Arabia in

terms of its global tourism. It is very much part of the 2030 Vision and is creating new jobs for Saudi, bringing GDP and several billions of dollars,” said Williamson. “2022 will be a phenomenal year in terms of Saudi Arabia. It will be fiercely competitive, with a huge number of opportunities. Everyone in the Middle East should be flocking to Saudi Arabia to seize them. There’s eight years to go in terms of the 2030 Vision but with some fantastic milestones enroute. “At the end of this year, we’re opening our resorts to the public, in 2023 we will complete phase one of the project. But it’s not just the Red Sea project but projects down the west coast, projects in Jeddah, projects in Riyadh, it’s a fantastic time to be in Saudi Arabia.”

February 2022 | MEConstructionNews.com

and construction offerings, while also bringing forward a comprehensive focus on worker and employee welfare. “I am deeply honoured and humbled to be awarded Female Executive of the Year by Big Project ME. For me, this award is an affirmation of my belief that women can work in any industry of their choosing. Despite the fact that women are not equally represented in the construction industry, we nevertheless play a pivotal and important role in its success,” Singgih said. “I am hoping that by recognising women’s role in the construction sector, one that is perceived to be mostly male dominated, we will raise awareness of the gender gap and over time eliminate gender bias.”

BPME AWARDS 2021

MEConstructionNews.com | February 2022

EVENT REVIEW

Construction Intel Summit KSA - Part 2

A Blueprint for Competitive Edge

Held on January 26-27, 2022, the Construction Intel Summit KSA Part 2 took a deep dive into the key issues facing Saudi Arabia as it begins to speed up its transformation. Paul Godfrey recaps the main talking points from the two days of the Summit

hen it comes to Saudi Arabia’s neartrillion-dollar opportunity, what are the most effective strategies for market entry? How can we best ensure smooth-running of a megaproject involving potentially scores of business partners? These are the style of questions that the livestreamed webinar Construction Intel KSA Part 2 was created to

answer. On 26th-27th January, it brought together key Construction sector pundits and champions to assess current scenarios and give practical, grounded advice on the approaches most likely to bring competitive edge and market differentiation. This was provided in no uncertain terms by the webinar’s ice-breaker session - a ‘fireside chat’ between Gavin Davids, head of Editorial and Content, Big Project ME, and David

Clifton, vice president - Business Development, UAE and Northern Gulf, Hill International. The key issues they debated ranged from an overview of global and regional macro-economic trends and how they impact the region (including the importance of oil price trajectory); the pressing need to address urgent supply chain issues, particularly when it comes to delivering Saudi’s giga-projects; whether there is sufficient FDI to support the

nation’s highly ambitious plans; and - critically - how KSA’s new social contract and commitment to Saudi-isation affects the available manpower resources and ability to deliver across critical job roles and responsibilities. On this last issue, Clifton made the telling point that so often, the teams comprising of KSA nationals have strong qualifications and great attitude, but lack the experience of managing and delivering the projects they are engaged with.

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February 2022 | MEConstructionNews.com

EVENT REVIEW

Day One Recap: An Infrastructure masterclass - and the growing role of Technology must-have, since it can • Help make large-scale enterprises more manageable, ie, rationalising multidepartmental engagement in giga-projects • Set increasingly favourable project horizons and shorten deadlines • Build bridges between public and private sectors and their differing priorities and preferences for outcome

In order to give panoramic coverage of the crucial issues, the event’s sessions were driven by three main verticals Infrastructure, Technology and Asset Management. An outspoken infrastructure innovator, Peter Docwra - Former Executive Director, G20 Summit Riyadh started the infrastructure agenda by giving a detailed casebook of the approaches that proved most effective when delivering the recent G20 Summit, and how it was possible to flip the occasion to a virtual format in only nine working days! He spoke clearly and unequivocally about the importance of working from a basis of trust and transparency and the importance these values have for navigating successfully through the highest echelons of the public sector. It became apparent in the next session that, even for mid-sized businesses, there is an increasing need to work with an integrated technology platform - in fact, Herman van Eeden, senior consultant, RIB Software, argued

that this isn’t only the best possible means for integrating diverse stakeholders and for delivering a detailed ‘dashboard’ of realtime progress and profitability. Does this mean complex training and set-up investments, and therefore, potential delays? Not at all - in fact, the delays will come when there isn’t the right kind of technology platform in place, or if companies are

trying to bolt together a messy assembly of different Excel spreadsheets, accounting and project management formats. Next, Brad Barth, chief product officer, InEight, met with Paul Godfrey in the second of the day’s ‘fireside chat’ sessions, launching a focus on Technology issues. He argued that an integrated management platform is no longer a ‘nice-to-have’, but a

Dr Marwan Abu Ebeid, Digital Transformation lead, Turner, followed Barth with a presentation that argued that an organisation’s path to Digital Transformation was in fact nothing like as challenging as it’s so often presented, and can potentially deliver massive incremental improvements in delivery, internal coherence and - ultimately - profit margins. It can also bring on board the vast benefits of Smart working and AI, showing organisations how and where they work best, enabling them to systematically reduce waste and focus on maximizing core strengths.

MEConstructionNews.com | February 2022

EVENT REVIEW

Day Two Recap: Technology as a path to Innovation the first step towards opening the door to the new, unlimited dimensionality of the Metaverse. THE OMNI-PRESENT ROLE OF ASSET MANAGEMENT

The first panel of Day Two focused on the critical theme of ‘Innovation delivery and Technology’, and brought together Mike Paul, managing director, InEight EMEA; Prakash Senghani, director, head of Digital Delivery, JLL; and Gavin Britton, Portfolio and Products director, Atkins. Mike Paul focused on the allimportant need for Innovation, not for its own sake, but because it’s the one and only way that a business can differentiate itself, not least in the process of bidding for competitive tenders. What about those values that Peter Docwra mentioned - trust and transparency? Don’t they best differentiate a business? The panel took the view that yes, they do, but in today’s high-energy market the only way they can be communicated is via the technology interface that a business uses. If this isn’t there, or if it’s not good enough, nothing else that a business does will adequately convey that it’s actually trustworthy and transparent. What about the Metaverse?

ISOs are only starting points - they need to be delivered by successful client engagement and project delivery”

February 2022 | MEConstructionNews.com

Does this represent a fresh universe where entire megaprojects can be comprehensively mapped and analysed? Prakash Senghani believes that it will do eventually, but that presently, we’re still a long way from effectively deploying it as a working tool. Mike Paul and Gavin Britton believe that the new work around the Digital Twin concept - developing BIM paradigms - is

The day’s second panel focused on the ways that today’s organisations can innovate the Asset Management mix in order to win higher volumes of business and run the projects they already have on-time and on-budget. Perhaps surprisingly, it was the ‘people’ dimension which dominated the discussion, which engaged • Paul Bogan, chief digital officer, Serco • David Fulham, operations director, Middle East & Africa, AMCL • Peter Docwra, former executive director, G20 Summit Riyadh’ • Ash Toma, head of Digital Management, Atkins David Fulham argued that client work needs to be delivered via a top-down mandate, and it is responsibility of the

EVENT REVIEW

Anchor Session: The Infrastructure Opportunity contractor, developer, or consultant to advocate that working procedure. Also, the success or failure of the Asset Management mix can only be assessed accurately by taking a full life-cycle view. This is particularly important when it comes to the role of PublicPrivate Partnerships (PPPs), where the working model in the GCC region has so often lacked the mechanisms for protecting the interests of the private sector in the medium to long-term. Peter Docwra similarly believes that working relationships are critical to effective Asset Management and concurred with Paul Bogan that effective technology interfaces can really help build these relationships and the all-important credibility factor. Yet we also need to think about the experience of the teams we have - reflecting the point made by David Clifton in Day One’s ‘fireside chat’ segment. Do the people we have shown the experience and ability to build these key relationships; isn’t there an incredible need for training, which again needs to follow the top-down model? Meanwhile, Ash Toma focused on the raft of relatively new legislation and introduction of fresh ISO standards, complementing the raft of activities covered by ISO55001. Achieving these standards, he believes, is vital in establishing a business’ credibility; but we should remember that the ISOs are only starting points - they then need to be delivered in practice and seasoned by successful client engagement and project delivery.

In Day Two’s compelling final session, Bharat Limaye, CEO and managing director, Probity Management Consultancies, focused on the role of Infrastructure and how it is both the barometer and enabler of a nation’s economic success. As a case in point, he showed slides of the trans-European road network created by the ancient Romans - and how the key urban sites this created have remained the most prominent commercial hubs until the present day. The ‘golden rule’ here is that a nation’s Infrastructure is so important to its success that it will never be finished or completed, and the nation will always see it as a principle focus of investment. Hence, in KSA, the Transport and Logistics sectors are set to receive US$147 million of government investment over the next 10 years, because the aim is that by 2030 they will account for 10% of the nation’s GDP. As for Bharat’s tip for successful investment and the sectors that incoming businesses should opt for above any other?

There is no doubt that if you want a safe bet, that sector would be Hospitality and Tourism; it has consistently been on the front burner and throughout all the recent changes and trends in the economy, this is the only sector where the government has not faltered or lessened its commitment”

“There is no doubt that if you want a safe bet, that sector would be Hospitality and Tourism; it has consistently been on the front burner and throughout all the recent changes and trends in the economy, this is the only sector where the government has not faltered or lessened its commitment.” CONCLUSION

In an event dedicated to giving real, grounded guidance about the Saudi Construction sector, three points emerged as the most critical • Innovation is everything: it’s the best way to differentiate your organisation from its competitors • Saudi officialdom places huge value on character traits such as Trust and Transparency - but they can now only be projected through the effective use of technology • Working with experienced teams is key: qualifications and good attitude are no substitutes for on-the-job experience and real expertise

MEConstructionNews.com | February 2022

COMMENT

Industry insight

RIAD BSAIBES

AMANA INVESTMENTS

Five key trends shaping construction in 2022

he construction industry in the GCC region is on a growth trajectory, despite continuing pandemic challenges. Digital transformation is expected to continue apace in 2022, improving efficiencies, reducing operational costs, and increasing profitability. The regional construction industry is also improving its performance on sustainability, diversity, and inclusion by increasing investments in connected construction, leveraging technology and innovative methodologies. As such, here are five notable trends we believe will shape construction in 2022: 1. SHIFT TO CONNECTED CONSTRUCTION

The future success of the construction sector hinges on deploying connected construction technologies across the value chain. Integrating assets, people and processes into a single intelligent and secure platform will improve operational efficiencies and transparency, reduce errors, and help move projects successfully to completion. Regional construction companies are adopting Building Information Modelling [BIM] to fast-track project development and completion. Globally, the BIM market is expected to reach $18.73 billion by 2028, growing at a CAGR of 15.3% from $6.91 billion in 2021. 2. FROM PROJECTS TO PRODUCTISATION

Faster and greener, modular construction has emerged as a viable solution in a rapidly evolving landscape. The global modular construction market size is expected to reach February 2022 | MEConstructionNews.com

$138.9 billion by 2028, growing at a CAGR of 6.4% from 2021 to 2028, as improving productivity and workplace safety at construction sites are expected to drive the market. Manufacturing construction potentially reduces material waste by up to 30% and improves the work safety by up to 70%. As it decreases the need for manpower by up to 30%, it is an ideal solution to overcome labour shortages. Moreover, modular buildings can be constructed in 50-75% of the time of a conventional site-built project of comparable size. 3. CIRCULAR ECONOMY AND SUSTAINABILITY

The GCC is accelerating the move to a decarbonised future, articulated through agendas such as The UAE Vision 2021, Dubai Strategic Plan 2030, and Saudi Vision 2030. The construction industry, responsible for one-third of global carbon emissions, is being regulated by federal building codes such as ESTIDAMA. Industrialised construction is being increasingly adopted – a building’s structural components are manufactured off site, then assembled on site. Industrialised construction will systematically reduce the captive carbon footprint of buildings. Driven by investor and consumer demand as well as regulations, construction projects are integrating sustainability through technology. 4. BUILDING NATIONAL RESILIENCE

Building national resilience in digital infrastructure and security is a priority for the GCC states. Technological advances and the increasing adoption of cloud-based services are stimulating the demand for digital infrastructure. Data centres are a critical element of the infrastructure required to build digital economies. 5. TACKLING THE SKILLS GAP

With increased digitalisation, the skills gap is anticipated to grow and is a key concern for construction leaders as it negatively impacts project timelines, agility, growth, and innovation. In 2022, attracting talent, upskilling, and reskilling the workforce will be critical. There is also an urgent need to focus on diversity and inclusion in the GCC construction sector. Riad Bsaibes is the president and CEO of AMANA Investments.

ROBERT THOMAS CORE

Dubai market review and 2022 forecast

he UAE government continues to make strides with pioneering policies and reforms, cementing its position as a global hub for business, investment and talent with a raft of highly favourable visa regulations aimed at attracting and retaining residents across all demographics. The latest reform to align with the global workweek and being the first country in the world to officially commence on a 4.5-day work is expected to have a cascading positive effect on Dubai’s business competitiveness. Dubai continues to manage the pandemic efficiently with the highest vaccination rates and robust protocols - keeping safety and business continuity at the forefront. The launch and ongoing success of Expo 2020 along with a very busy winter season with one of the highest hotel occupancies recorded in Q4 2021 is a further testament to Dubai’s global appeal. With many demand drivers including forward-thinking and strategic government initiatives, the lowering of LTVs along with business resilience during the pandemic, have helped Dubai in reviving strong investment interest across sectors. This has created upward pressure on the real estate market with a 10% rise in city-wide capital values and a 7% rise in rentals witnessed over 2021, while prime residential districts considerably outperformed. Looking forward, with a robust budget of AED181 billion announced for 2022-24 focusing on infrastructure, social development, security, safety and innovation, economic sentiment is the most optimistic it has been in the last seven to eight years. We expect 2022 to see a continued uptick in values, albeit at a slower

COMMENT

pace compared to the last few quarters and forecast steady activity levels with demand coming in from new entrants, investors and existing occupiers leading to a flight to quality in established office and residential districts. We expect sales transactions, in the secondary and particularly off-plan market, to see a steady uptick in 2022 as demand continues from local and international buyers. Investor interest increased sharply over 2021 due to relative ease in travel restrictions, positive sentiment, and a rise in the number of tourists stemming from Expo 2020 coupled with Dubai’s demonstrated success in managing the pandemic efficiently. That said, the Dubai residential market continues to be led by end-users driven by the raft of social and economic reforms along with the lowering of interest rates and LTV ratios. Sales prices will witness a gradual, yet, continued rise, particularly in prime villa and apartment districts, with most districts expected to near 2014 peak values. The rental market will balance out and start favouring the landlords after being tenantfriendly for years, however, rental rises will not be uniform across the city. COVID-19 variants will continue to impact remote working, thus keeping demand for villas and larger units strong. Prime districts will continue outperforming the market, further intensifying market fragmentation. While we expect most districts to recover, prime districts due to limited availability and high demand, are expected to see sharper rises. With a high number of handovers expected in 2022, oversupply will remain a downside risk, particularly in the suburban apartment districts due to most of the supply concentrated in these areas. While COVID-19 variants cause continued uncertainty, we expect market sentiment to remain positive over 2022 due to the UAE government’s focus on making the country the preferred place for businesses and residents while safely managing the pandemic and maintaining business continuity. These reforms are expected to positively impact the real estate market and bolster demand across asset classes. However, market recovery is expected to be segmented with a few residential districts witnessing slower stabilisation rates due to the supply overhang, and the Grade B and C office stock continuing to face challenges. Robert Thomas is Head of Agency at CORE.

FOCUS ON THE LIVED EXPERIENCE

FRANK JANSSENS KROHNE

Steps towards decarbonisation in 2022

midst Abu Dhabi Sustainability Week, it seems an apt time to reflect a little on decarbonisation and the broader ESG dialogue. COP26, the UN climate change conference, was followed by ADIPEC the world’s most influential meeting place for the oil and gas industry. With decarbonisation and energy transition very much on the industry agenda, where can we make genuine changes for the immediate future without negatively impacting business? This is the issue on every business leader’s mind today. In fact, I wondered if it was possible to apply learnings from an inclusive workplace discussion, I had chance to catch at ADIPEC to improve the ESG arena. There are three key themes to consider: LEADERSHIP BEHAVIOUR

Do we as leaders genuinely care about sustainability? I am heavily invested in industrial processes and infrastructure which lend themselves very well to this kind of thinking. On the other hand, I am also a father and have a deep responsibility to advocate for positive change for the next generations to come. Our company mottos is “measure the facts” and, in terms of sustainability, we play a role in helping our customers in precise measurement across their operations so they can optimise and make informed decisions around reducing, reusing and recycling resources. Part of our engineering and process advisory role is in understanding issues and recommending efficient solutions, through which we continue to play a small but growing part in the incremental changes underway.

By bringing to life the small, subtle changes around the office and our global operations we can make a difference. While we are fortunate to be regionally headquartered in a forwardlooking society such as the UAE, we need to bring greener ways of working to life around the office too. Can we use less water and electricity in our everyday operations? Local GCC companies such as DEWA, ADDC, SWCC, NEOM, are strong educators in this space and provide excellent case studies and proof points. It is through alchemical public-private partnership that we can combine vision and investment with expertise in innovative measurement and process optimisations solutions. The end results are greater than the sum of their parts, offering exponential positive outcomes that will likely achieve far more than was originally intended. The important thing is to bring the vision to life and showcase the benefits. BE THE MOST SUSTAINABLE PERSON YOU CAN BE

Beyond workplace behaviours, this final thought can be applied across every part of our lives – do you make greener choices where you can? Most buildings and communities in the UAE offer some level of recycling facility but do we make full use of this? Where we have buildings with huge windows and natural light streaming in, are we turning off our electric lights? What do we do with our plastic PET bottles? The choices are there to be made and they can be increasingly complicated. The decision to purchase a fully electric car over a traditional combustion engine or hybrid vehicle opens a discussion around battery technology and product lifecycle overall, when perhaps not owning a vehicle at all is the “greener” option for your family and the topic rolls on. As a final reflective takeaway, I would ask: Does our behaviour and our consequent choices reflect this pearl of wisdom? “It is our choices, Harry, that show what we truly are, far more than our abilities.” – Harry Potter and the Chamber of Secrets, J.K. Rowling At KROHNE every day we try to make the right choices both in the context of our legacy and in our ongoing mission to equip our partners to make the right decisions. Frank Janssens is vice president, sales at KROHNE. MEConstructionNews.com | February 2022

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Middle East tenders UAE RESIDENTIAL

LIV Marina Tower TERRITORY Dubai Marina, UAE CLIENT LIV Real Estate Development BUDGET $60 million DESCRIPTION The project's scope of work involves the construction of a 50-storey residential tower, located in Dubai Marina, Dubai. COMPLETION 01/01/2025

tower in Dubai Marina. The project also includes the construction of apartments, four-level parking facilities, development of landscape and associated facilities. COMPLETION 01/12/2026 HOSPITALITY

RESIDENTIAL

Richreit Tower TERRITORY Dubai Marina, UAE CLIENT RichReit Real Estate Development BUDGET $151 million DESCRIPTION The project's scope of work involves the construction of a super-tall 71 storey residential

DESCRIPTION The project's scope of work involves the construction of 380/132 kilovolts substation located at Al Mahdiya, Riyadh, Saudi Arabia. The project also includes installation of power transformers, switch gear and civil works. COMPLETION 30/06/2024

Saadiyat Island Ritz Carlton Resort TERRITORY Saadiyat Island, UAE CLIENT National Corporation for Tourism & Hotels (NCTH) BUDGET $127 million DESCRIPTION The project scope of work consists of a resort located at Saadiyat Island, Abu Dhabi. The project comprises 380 hotel rooms, 7 residential buildings, 250 apartments, 32 villas, 75 luxury villas, parking facilities and associated facilities. COMPLETION 30/12/2024

SAUDI ARABIA COMMERCIAL

Al Ula Tourism Development - Sharaan Resort Service Area & Urban Centres

INFRASTRUCTURE

TERRITORY Al Ula in Yanbu, Saudi Arabia CLIENT Royal Commission for Al Ula BUDGET $50 million DESCRIPTION The project's scope of work involves the construction of 40 villas over a total gross floor area of 37,860 sqm, retail units, public amenities and associated facilities in the service area and urban centers phase 1 of Ula Tourism Development in the ancient city of Al Ula in Yanbu, Saudi Arabia. COMPLETION 30/09/2024

North Jeddah Reservoir TERRITORY Jeddah, Saudi Arabia CLIENT National Water Company (NWC) BUDGET $70 million DESCRIPTION The project's scope of work involves the construction of 2 mineral tanks with a capacity of 1,000,000 m3 for each, 40km pipeline in North of Jeddah, Saudi Arabia. COMPLETION 30/12/2023

OMAN

INFRASTRUCTURE

Al Mahdiya 380/132kV Substation TERRITORY Al Mahdiya, Saudi Arabia CLIENT Saudi Electricity Company BUDGET $50 million

INFRASTRUCTURE

Innovation Park Sewage Pumping Station TERRITORY Muscat, Oman

MEConstructionNews.com | February 2022

TENDERS

CLIENT The Research Council (TRC) BUDGET $40 million DESCRIPTION The project's scope of work involves the construction of a sewage pumping station, collection tanks, pipelines and associated facilities in Muscat, Oman. COMPLETION 30/03/2024

the Batinah Expressway, 9.2 kilometres dual road linking the intersection on the Al Batinah Expressway with the Suhar bridge, roads linking to the old Al Batinah Highway, flyovers, culverts, underpasses, and interchanges. COMPLETION 30/12/2024

INFRASTRUCTURE

Mahoot General Hospital

HEALTHCARE

Al Batinah Expressway (Package 7) TERRITORY Al Batinah North, Oman CLIENT Oman Ministry of Transport & Communications BUDGET $360 million DESCRIPTION The project's scope of work involves the construction of 270 kilometres (km) expressway located in Al Batinah North, Oman. The project includes a dual carriageway of 2.3 kilometres and 2.1 kilometres for roads 4 and 4A respectively, a single carriageway of 22.3 and 22.75 for roads 4 and 4A respectively, service road of 16.1 kilometres and 7.3 kilometres for roads 4 and 4A respectively, 14 kilometres road linking the Khazaen economic zone with

TERRITORY Al Wasta, Oman CLIENT Oman Ministry of Health BUDGET $62 million DESCRIPTION The project's scope of work consist of a hospital building located at Mahoot, Al Wasta Governorate, Oman. The project also includes primary checkup rooms, patient rooms, waiting rooms, installation of fire sprinkler systems, electrical work, an alarm system and infrastructure works. COMPLETION 30/09/2024

BAHRAIN RESIDENTIAL

Qalali Beach

Building Package TERRITORY Qalali, Bahrain CLIENT Bahrain Tourism & Exhibitions Authority BUDGET $50 million DESCRIPTION The project's scope of work involves the construction of a waterfront buildings, parking facilities and associated facilities on Qalali corniche in Bahrain. COMPLETION 30/12/2024 INFRASTRUCTURE

Janabiyah Block 575 Roads & Sanitary Work TERRITORY Janabiyah, Bahrain CLIENT Bahrain Ministry of Municipalities Affairs

& Urban Planning BUDGET $20 million DESCRIPTION The project's scope of work involves the construction of new residential access roads of various widths with an approximate total length of 4,570 meters, earthworks, asphalt paving works, stormwater drainage works, paving blocks and associated facilities in Janabiyah Block 575 in Bahrain. COMPLETION 30/12/2023 MIXED-USE

Bahrain Marina (Phase 1) TERRITORY Bahrain Marina, Bahrain CLIENT Bahrain Marina Development Company BUDGET $70 million DESCRIPTION The project's scope of work consists of a 2-storey retail facilities and the marina located at Bahrain Marina located in Bahrain. The project also includes construction of the leisure and entertainment area, a 10-screen cinema, including the waterside retail, family entertainment, a 2,500 square meter public plaza and the yacht club. The project entails retail area of 27137 square meters (sqm), and 18308 sqm of gross leasable area. COMPLETION 30/12/2024

QATAR INFRASTRUCTURE

North Semaisma Roads & Infrastructure Work (Package 2) TERRITORY Semaisma, Qatar CLIENT Public Works Authority (ASHGHAL) BUDGET $40 million DESCRIPTION The project's scope of work involves the construction of roads and infrastructure works project in the North of February 2022 | MEConstructionNews.com

TENDERS

Semaisma, Qatar. The scope also covers pedestrian walk, cycle track, groundwater drainage network and associated facilities. COMPLETION 30/09/2024 EDUCATIONAL

Qatar Academy - Sidra TERRITORY Sidra, Qatar CLIENT Public Works Authority (ASHGHAL) BUDGET $75 million DESCRIPTION The project's scope of work involves the construction of an academy, administrative spaces, parking facilities and associated facilities at Sidra in Qatar. COMPLETION 30/12/2024 INFRASTRUCTURE

Doha Northern Areas (2022) Road Improvement Works TERRITORY Qatar CLIENT Public Works Authority (ASHGHAL) BUDGET $25 million DESCRIPTION The project's scope of work involves the construction of road improvement works, earthworks, pavements and associated facilities in the northern areas of Qatar. COMPLETION 30/03/2024

KUWAIT INFRASTRUCTURE

Al Sabah Medical District 132/11kV Main Transformer Stations TERRITORY Al Sabah Medical District, Kuwait CLIENT Kuwait Ministry of Electricity & Water (Ministry of Electricity & Water & Renewable Energy) BUDGET $100 million DESCRIPTION The project's scope of work involves the construction of four 132/11kV transformer

station, cables, associated civil and infrastructure works. COMPLETION 30/12/2024 COMMERCIAL

Sabah Al Salem University City Data Centre TERRITORY Sabah Al Salem University, Kuwait CLIENT Kuwait University Construction Program (KUCP) BUDGET $40 million DESCRIPTION The project's scope of work involves the construction of a data centre information technology (IT) infrastructure, disaster recovery hosting under co-location and disaster recovery IT infrastructure, data centre

and disaster recovery network infrastructure, external network infrastructure, data centre and disaster recovery information and cyber security infrastructure. COMPLETION 30/12/2023 AVIATION

Kuwait International Airport Expansion Terminal 2 - New Passenger Terminal Airside Work TERRITORY Kuwait International Airport City, Kuwait CLIENT Kuwait Ministry of Public Works BUDGET $145 million DESCRIPTION The project's scope of work involves the airside works on the new passenger terminal 2 located at Kuwait International Airport City, Kuwait City, Kuwait. The scope includes passenger mover tunnel, multiple tunnels to link the new terminal with the airport, baggage transfer tunnel, vehicles moving tunnel, service tunnels, waste management facilities, retail storage and customs control facilities. The scope covers construction of

Catering Building (69,000m2 Built-up-area), Consolidation Centre (26,200m2 Built-up-area), Security Gates/Gate Houses, central plant (4,700m2 Builtup-area), electrical substation (630m2 Built-up-area), APM/ Baggage Tunnel of 510m, Cargo Tunnel of 80m, GSE Tunnel East of 512m, GSE Tunnel West of 676m, Aviation Fuel Distribution (Aviation Fuel and Hydrant System with Hydrants and fuel pipelines including Testing and Commissioning), External works covers pavement, service roads, traffic signs & markings, fencing, storm drainage sewer system, water, irrigation, fire fighting, AGL & AFL: Fixtures, Poles, Cans, cabling, CCR, Guidance Signs, Controls, Passenger Boarding Bridges, foundation, anchoring, earthing, PCA & GPU: Piping, Chillers, AHU, Ducting, Controls, Cabling, Boards, Pits, VDGS: Gantries & Brackets, VDGS, GOS, Cabling Control Pits , potable water, bluewater, sanitary systems, cabling, patching, routers, duct banks, Pits, controls. COMPLETION 30/12/2023

MEConstructionNews.com | February 2022

PROGRESS REPORT

Final update

ACCIONA completes construction of Shuqaiq 3 desalination plant in KSA SWRO plant is a key project in the modernisation of the Kingdom’s water sector

CCIONA has completed the construction of the SWPC’s Shuqaiq 3 Independent Water Project (IWP) Seawater Reverse Osmosis (SWRO) desalination in Saudi Arabia and it is working at full capacity. The SWRO plant, of high-energy efficiency, is a key project in the modernisation of the water sector that is currently being carried out by Saudi Water Partnership Company

(SWPC) of Saudi Arabia, a statement said. ACCIONA is the Engineering, Procurement & Construction (EPC) contractor for the desalination plant, which will produce 450,000 cubic meters of potable water per day. The project also includes the EPC of a large Electrical Special Facility (ESF) to feed the plant with power and some other additional installations from the existing power plants in the vicinity. This SWRO plant is going to provide water to the areas of Asir and Jizan covering a potential population of two million inhabitants in this extremely dry region close to the border with Yemen. ACCIONA Middle East EPC Director for the Water Division, Mazen Bachir, said: “This milestone is the result of exceptional collaborative teamwork between the owner, the client, the owner’s engineer and the project team”. Javier Nieto, PPP Director, ACCIONA Water Business, added that the project was completed to schedule despite challenging circumstances, and that the project would contribute to

February 2022 | MEConstructionNews.com

Key project The SWRO plant will provide water to a potential population of two million inhabitants of Asir and Jizan, near Saudi Arabia’s border with Yemen.

43%

Saudi’s Vision 2030 program, hopes to reduce water use by up to 43% by the end of the decade

supplying drinking water in a ‘sustainable and innovative way’. Saudi Arabia, a country with a population of around 33.4 million, is the third biggest consumer of water per capita in the world, after the United States and Canada. According to ACCIONA’s latest Sustainability Report, total production of desalinated water in the Middle East region will be 13 times higher in 2040 than in 2014. In a region with serious water shortages, the demand for desalinated water is growing in response to climate change and an increasing population. Julio de la Rosa, ACCIONA Middle East Director for the Water Business, added: “We are very proud to contribute with the measures implemented by the Kingdom of Saudi Arabia to rationalise water consumption as part of its Vision 2030 program, with the aim of reducing consumption by up to 43% by the end of the decade. Thanks to the reverse osmosis technology, this project will help also to reduce the CO2 footprint.”

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