Big Project ME February 2023

Leading the Digital Journey

BIG PROJECT ME SPEAKS TO MOHAMED SWIDAN TO LEARN HOW PROCORE IS GUIDING THE MENA CONSTRUCTION SECTOR ON ITS DIGITAL TRANSFORMATION JOURNEY

KAIRNIAL is paving the way to make zero defects a reality at handover

Centralize a defect register, accessible to all users

Enhance communication between on-site and off-site teams

Kairnial enables a fluid construction work flow providing instant access to high powered information

ANALYSIS FEATURES INSIGHT

08 The Briefing

Emmanuel de Smedt shares his insights on the sealant industry in 2023, while Uros Trojanovic looks at digitalisation in the built environment

12

The Big Picture

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

14 Market Report

Betterhomes report examines the market dynamics of Dubai’s booming real estate sector

16 Analysis

Fadi Bayoud of Strategic Anchors, discusses the transformation challenges and change hurdles in the construction sector

20 Industry Insight

Mohamed Swidan

Big Project ME speaks to Mohamed Swidan of Procore about the firm’s efforts to help the regional digital transformation

28

Project Profile

The New Palace of Justice, Big Project ME profiles The New Palace of Justice, the smart judicial facility in Kuwait City, which has been designed by Pace Architecture Engineering + Planning

34 In Profile

Big Project ME speaks to Madhav Dhar, of ZaZen Properties, about his views on the real estate sector in 2023, and the importance of sustainability for investors

40

Final Update

Red Sea Global awards $266m utilities and infrastructure works for AMAALA to AL-AYUNI Investment and Contracting Company

Moving the needle forwards

As we move rapidly into 2023, there are two themes that seem set to define the construction industry’s year ahead – Digitalisation and Sustainability. To me, the two are interlinked, as successfully implementing one, means better performance in the other. You cannot be a truly sustainable construction company in 2023, if you are not digitally empowered. Conversely, part of any organisation’s digital transformation journey is adopting sustainable processes and procedures.

We’re seeing this happen more often across the sector as companies realise that they need to do both, if they are to make a contribution to regional ambitions on both fronts. With COP 28 happening in the UAE, in November this year, I suspect that the conversation that is happening in the background, will soon shift to being shouted from the rooftops.

Looking at our cover story this month, as well as our other interviews, it’s plain to see that the industry has already been thinking about this and looking at how they can move the needle forward on both sides.

This February, we’ll have the opportunity

to how seriously the industry is taking this shift towards digitalisation with the entries for the ME Digital Construction Awards – the deadline for which is February 15, 2023, ahead of the awards themselves on March 15. I’m excited to see who and what will be submitted, as I think these awards are a unique opportunity for the industry to showcase their skills and capabilities in a field that is constantly developing and moving into different, unexpected directions. I hope I’ll be pleasantly surprised! Following the awards, we’ll be ramping up preparations for the 2nd edition of the Energy and Sustainability Summit, which will be held in May. Launching last year’s event was an eye-opening experience, as I wasn’t quite sure what to expect – however the response was fantastic, with some in-depth and informative conversations taking place before, during, and long after the summit itself. I’m certain that this year will surpass the high bar set, and I’m looking forward to down to work on it. Do reach out and let me know if you’re interested in speaking at it.

Till then, I hope you’ve all had a productive and successful start to the year!

Gavin Davids HEAD OF EDITORIAL & CONTENT

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Leading the Digital Journey

ON THE COVER

Group MANAGING DIRECTOR Raz Islam raz.islam@cpitrademedia.com

MANAGING PARTNER Vijaya Cherian vijaya.cherian@cpitrademedia.com

DIRECTOR OF FINANCE & BUSINESS OPERATIONS Shiyas Kareem shiyas.kareem@cpitrademedia.com

PUBLISHING DIRECTOR Andy Pitois andy.pitois@cpitrademedia.com

Editorial HEAD OF EDITORIAL & CONTENT Gavin Davids gavin.davids@cpitrademedia.com

+971 4 375 5480

Advertising

SALES DIRECTOR Raed Kaedbey raed.kaedbey@cpitrademedia.com

+971 4 375 5715

SALES EXECUTIVE Madeleine Martin madeleine.martin@cpitrademedia.com

+971 4 375 5714

Design

ART DIRECTOR Simon Cobon simon.cobon@cpitrademedia.com

DESIGNER Percival Manalaysay percival.manalaysay@cpitrademedia.com

Photography

PHOTOGRAPHER Maksym Poriechkin maksym.poriechkin@cpitrademedia.com

Marketing & Events

EVENTS EXECUTIVE Minara Salakhi minara.s@cpitrademedia.com

+971 4 433 2856

SOCIAL MEDIA EXECUTIVE Dara Rashwan dara.rashwan@cpitrademedia.com

Circulation & Production

DATA & PRODUCTION MANAGER Phinson Mathew George phinson.george@cpitrademedia.com

+971 4 375 5476

Web Development

WEB DEVELOPER Abdul Baeis abdul.baeis@cpitrademedia.com

WEB DEVELOPER Umair Khan umair.khan@cpitrademedia.com

FOUNDER Dominic De Sousa (1959-2015)

Big Project ME speaks to Mohamed Swidan, senior director and head of MENA at Procore,

CONSTRUCTION

Eshraq announces successful land transaction with Danube

PROPERTY

Modon Properties opens new fish market in Abu Dhabi’s Mina Zayed district

ANALYSIS: Is Oman’s construction industry waking up?

CONSTRUCTION

RSG awards $266mn contract to AL-AYUNI for first phase of development at Amaala

INTERVIEW: Omnix and IMSCAD ink deal to bring VDI environments to AEC firms

INFRASTRUCTURE

RTA opens Sheikh Zayed bin Hamdan Al Nahyan street improvement project

CONSTRUCTION

Deyaar completes Mesk and Noor districts

INTERVIEW: “COP28 has the potential to have a significant impact”

CONSTRUCTION

Saudi’s PIF and Samsung C&T partner to develop construction tech and modular housing

As part of the deal, Samsung C&T Corp will build modular homes in the Kingdom in a joint investment with PIF

PROPERTY Espace Real Estate expands with two new Dubai offices

The brokerage said it plans to expand progressively into the off-plan and new projects sectors

INDUSTRY

Extreme weather is driving investments into climate risk digital solutions says Verdantix McKinsey, Conning, BlackRock, Moody’s and S&P Global and others have acquired or launched climate resilience solutions in the past two years

INDUSTRY

2023 could be tough for cement producers says World Cement Association Director Market pressures could gradually push cement producers to establish higher cement prices

MOST POPULAR

SUSTAINABILITY

Sheikh Mohamed bin Zayed Al Nahyan announces 2023 as the ‘Year of Sustainability’

PROPERTY

Knight Frank report shows Grade A warehouse lease rates continue to escalate

CONSTRUCTION

Tasjeel and SAM launch first site offering testing services for vehicles in Sharjah

INDUSTRY

Alstom certified as ‘Top Employer’ in three Middle East markets

PROPERTY

219 ultra-prime homes sold in Dubai in 2022 says Knight Frank

The record-breaking year has the highest $10mn+ villa sales ever recorded

CONSTRUCTION

World’s first 3D-printed mosque to be developed in Dubai

Top Trends for the UAE’s Construction Adhesives and Sealants Market in 2023

Although the pandemic has now become ‘yesterday’s news’, it has changed the world in many ways. The way corporations function today has highly evolved due to the obligations of COVID-19. The Middle East construction sector, specifically, faced numerous challenges through the pandemic, including issues with supply chain management, costs of implementing health and safety measures, restrictions on the labour movement and so on, provoking the industry to come up with innovative solutions. However, the industry has evolved through innovations and technological advancements. Contractors and developers are focusing on

building sustainable communities to meet consumer demand. An essential aspect of construction is the materials used to build the communities the project calls for.

The industry is gradually progressing, creating a new approach to development. The Adhesives and Sealants market in the Middle East & Africa (MEA) region is expected to grow at a CAGR of more than 4.8% between 2022 and 2027.

As consumer demands grow within the construction industry and the healthcare infrastructure, together with tourism projects, the need for adhesives and sealants is also expected to grow.

Considering the changes in lifestyle since the pandemic, enriched buying capabilities and a growing population are the key drivers of the increasing

Emmanuel de Smedt, managing director at Al Muqarram Industry, shares his thoughts on what manufacturers need to do to keep pace with changing market dynamics in the coming year

50% Contractors are trying to ensure that at least 50% of their projects are built through eco-friendly products

consumer demand for automobiles, houses, electronics and more, requiring adhesives & sealants for manufacturing. The increase in upcoming construction projects is developing the market unlike ever before.

Additionally, with the construction industry shifting its focus to building smart cities and sustainable communities as part of UAE’s Net Zero emission ambitions attaining Vision 2030, more and more contractors are looking for newer, more innovative bio-based products in the market. This, in turn, will result in a massive boom in demand for sustainable products within the region’s adhesives and sealants sector.

Over the years, construction companies have been evolving to meet market demands and ensure consumer satisfaction in delivered projects. Projects such as Dubai Expo City, UAE, and NEOM, KSA, are just the beginning.

Over the next year, there are several emerging market trends that the construction industry can expect. As consumer demands and industry focus evolve, manufacturers will have to upgrade their products to stay in business.

TREND 1: INCREASE IN DEMAND FOR SUSTAINABLE PRODUCTS

Within the MEA region, Saudi Arabia stands to be the biggest market for the Sealants and Adhesives industry. The industry’s sales are driven by the end user rather than the trading market.

The industry is evolving itself based on consumer demand. The future expects a rise in the market for waterbased adhesives since they do not contain solvents. Water-based materials are not harmful and generally classify as “green products” or eco-friendly. Since sustainability is a key focus for construction, there will be a significant rise in demand for water-based, sustainable products and materials.

Moreover, consumers are also looking to invest in more bio-based adhesives, specifically creating opportunities for the food markets. Only some manufacturers produce food-grade products because these require additional work, such as getting FDA approvals and distilled water tests. The bio-based adhesives are in high demand within the food industry.

TREND 2: INCREASE IN USE OF SPECIALISED ADHESIVES

The adhesives market is bound to witness a growth in demand and use of specialised adhesives suitable for different substrates, such as wood, furniture upholstery, adhesives for the HVAC industry and so on. Adhesive manufacturers with a 360-degree focus on different types of substrates providing adhesives suitable for heavy-duty bonding are significantly gaining the attention of end users and traders due to the different requirements in one project.

TREND 3: MODULAR CONSTRUCTION

Modular construction is another important trend developing within the construction industry due to the rapid availability of materials. Another reason why modular construction is expected to be in great demand is due to its better finishing and speed of project delivery. Additionally, this construction approach is cheaper and does not entail much hassle. Modular construction is a trend developed by the industry to adapt to unanticipated circumstances, such as the rise in oil prices during the war. With the increase in oil prices, the sector witnessed a surge in supply chain and

material costs; modular construction helps escape such matters. Moreover, with the region increasing its focus on green infrastructure, contractors are trying to ensure that at least 50% of their projects are built through eco-friendly products.

Approximately 18 to 20% of industry and manufacturing experts have begun catching up to the upcoming trends while advertising and exhibiting products that focus on the eco-friendly, green building requirements that have pre-built structures in the factories for the direct implementation process in infrastructure development.

Over the next five years, factors such as the growth of technology and innovation will change the construction style, especially in countries and regions building their sustainability visions, such as UAE or KSA with their Vision 2030 or 2050 goals.

In addition to these trends, the country will also focus on promoting locally manufactured products and building brands with ‘Made-In-UAE’ tags to escalate the nation’s economy. As more and more companies facilitate and embrace ‘Made-in-UAE’ products, the UAE’s primary structural glazing will significantly elevate the industry and economic growth.

4.8% The adhesives and sealents market in the MEA is expected to grow at a CAGR of more than 4.8% between 2022 and 2027

With the construction industry shifting its focus to building smart cities and sustainable communities as part of UAE’s Net Zero emission ambitions attaining Vision 2030, more and more contractors are looking for newer, more innovative bio-based products in the market ”

Centre Technology Around People

In 1985, the Vienna Convention for the Protection of the Ozone Layer was signed, providing frameworks for worldwide reductions of numerous substances responsible for the ozone depletion in the form of the Montreal Protocol. Fast forward to December 2021, when the UAE announced the ‘UAE Net Zero 2050’ strategic initiative aligned with the country’s golden jubilee year, with aims of achieving net-zero emissions by 2050. This strategic initiative, among other carbon negative and net-zero initiatives around the world have pushed international leaders across all industries, including construction, mining, transport, etc., to explore the potential of eco-friendly and sustainable infrastructure.

As a result of the global shift, investing in technology has become a major focus point in any company’s business strategies. As per the Global Cost Report prepared by CBRE Group, experts have specifically pointed out the emphasis around technology in

the construction industry, estimating that 6% to 12% of the total budget of construction companies is being allocated for technology, which is expected to grow by two-fold by 2040.

There is no question that these technological integrations and transformations are necessary for long-term sustainability, however, it is equally important for these transformations to be centred around people, such as residents.

Digital transformation in buildings is not introduced post construction, it starts in the design stages, continues through construction and the benefits are seen upon project handover. Whether the building goals are focused on security, customer experience or carbon reduction, technology is key in maximising productivity and producing data for better future decision-making.

From an asset management perspective, several technologies have become readily available throughout the years, allowing asset managers to improve on their

Uros Trojanovic, Divisional CEO, EAST-O Holdings, shares his thoughts on how construction technological integrations and transformations are integral for long-term sustainability in the built environment

existing operations through proper implementation and utilisation that revolves around creating a healthier and more secure home for residents.

Some of these technologies are:

1. IOT AND SMART APPS

Following the principle of netzero emissions, IoT is an essential technology when it comes to collecting information on energy savings and reducing carbon footprint. Different smart apps can be integrated around buildings for various applications, including HVAC systems for monitoring indoor air quality and energy usage, both of which play an important role in residents’ health and safety. IoT sensors collect data and provide realtime information on air quality inside buildings, they detect humidity and CO2 levels and notify managers if any harmful contaminants are detected. On the other hand, applying smart lighting allows the utilisation of information collected from IoT sensors to optimise energy usage in each area based on occupancy at different times;

therefore, one doesn’t have to wait for monthly utility bills and actions can be taken instantly. Over time, smart lighting can save businesses significant costs, if applied correctly.

2. NARROWBAND IOT (NB-IOT)

This Low Power Wide Area (LPWA) technology could potentially be implemented at any site, eliminating the use of long wires that spread out to connect devices from different locations to one another. NB-IoT works through transferring signals between devices wirelessly like a mesh with low dependency on internet, making the process of connecting IoT devices simpler and more efficient. This technology can be very useful if a manager is looking to connect a building’s smart CCTV’s or other smart devices across facilities, further enhancing buildings’ security systems. With other benefits being reduced power consumption, extended range, easy deployment and low component cost.

3.

The most important element of smart community building is listening to your customers. Managers today must look into introducing user-friendly apps that engage residents with their building managers and give them the ability to voice their concerns, book available amenities, pay their rent or

service charges, receive news, important notices and much more through their mobile devices. The transition to digital channels to engage with customers, results in a reduction of printed paper used for bills, cheques, brochures, flyers, etc., which significantly reduces the production of unnecessary paper waste. The analytics derived from such applications can then be used by managers to enhance operations and resolve day-to-day issues.

4. SMART SECURITY SYSTEMS

Planning and knowledge

The shift to digital transformation will require thorough planning and knowledge in various technologies, says Uros Trojanovic.

Listening to customers

The most important element of smart community building is listening to what customers want, so as to effectively engage with them.

The installation of high-end smart security systems across any building boosts the confidence of residents and gives them a justified sense of security. Installing such systems allows managers to monitor movements, implement intrusion mechanisms, visitor management systems, automated number plate recognition systems, etc., which all contribute to ensuring the residents’ wellbeing and safety while ensuring minimum carbon footprint. The conventional days where residents used intercom to communicate with their front desk or access cards to their premises are now replaced with smart apps that perform these tasks digitally. Implementing smart technology not only reduces the use of paper and plastic but also saves time.

The shift to digital transformation requires thorough planning and knowledge in various technologies and applications that can be integrated with existing systems. Nevertheless, majority of the industry leaders believe with utmost certainty that the benefits of digitisation far outweigh the initial effort and expense, and trends like automation or smart building have become major talking points for all customer-centric asset managers.

Employing technological trends appropriately can significantly reduce energy usage, carbon footprint, general operational costs and ultimately enhance the residents’ quality of life. That is why companies around the globe will continue to invest in these rapidly evolving technologies and we definitely expect a surge in innovation and progress in the coming years.

CUSTOMER APPS

2040 Construction companies technology budgets are expected to grow two-fold by 2040

Kuwait’s PART issues consultancy services tenders for P1 of railway network

Kuwait’s Public Authority for Roads and Land Transport (PART) has issued consultancy services tenders for Phase One of its 110km railway project network. It will run from the southern border with KSA through to the Shaddiyah region.

The scope of work includes a detailed study and design work for the rail network, as well as preparation of documents for the tender of Phase One. The winning consultant will be appointed by the end of May, while the final designs and studies will be completed by the end of 2023.

Construction begins on 300MW solar PV project

Saudi-based Jinko Power Technology Co subsidiary – Al Ghazala Energy Company – has begun construction of its 300MW Saad Solar PV project in the Kingdom, following the project’s financial close.

Engineering and construction firm Elsewedy Electric for Transmission and Distribution of Energy (EET&D) has been selected as the EPC contractor.

The scope of the full-wrap EPC contract covers design, supply, construction, warranty, initial operation, and maintenance of the project. It is scheduled for commissioning in Q4 2024.

04 UNITED ARAB EMIRATES Abu Dhabi DoE inks deal with NYU Abu Dhabi for energy and water sustainability

The Abu Dhabi Department of Energy (DoE) has signed a memorandum of understanding with New York University Abu Dhabi (NYUAD). It aligns with both organisations’ endeavours to achieve Abu Dhabi’s long-term economic development goals and outlines enhanced cooperation and the exchange of information and expertise in capability development. It calls for scientific, technical, technological, legislative, and administrative cooperation in energy and water efficiency, sustainability, and conservation.

Deal signed to develop UAE’s first EV battery recycling plant

The UAE’s first recycling plant for endof-life electric vehicle (EV) batteries is set to take shape, following the signing of a joint collaboration agreement comprising Beeah Recycling (a subsidiary of Beeah), the UAE Ministry of Energy and Infrastructure (MOEI) and the American University of Sharjah (AUS).

As per the deal, Beeah Recycling will join the ministry and AUS to identify world-class technologies for the EV battery recycling facility. The addition of an EV battery recycling facility will help further increase landfill waste diversion in the future.

03 UNITED ARAB EMIRATES Khansaheb Industries signs distribution deal with LG Electronics

A distribution agreement for the promotion and distribution of LG heating, ventilation and air condition products has been signed by Khansaheb Industries with LG Electronics Global. The deal is expected to bring greater product diversity to UAE businesses and consumers, Khansaheb Industries stated.

The agreement will see the firm sell LG’s wide diversity of HVAC products. Those include units with variable refringent flow, direct expansion, air handling units, and chillers. The partnership will deliver highly efficient and sustainable cooling solutions.

06 UNITED ARAB EMIRATES Dubai Municipality launches 3D infrastructure mapping project

Dubai Municipality has launched the ‘3D Infrastructure and Service Lines Map’ project, positioning the emirate as a fully smart model that provides cutting-edge services.

Contemporary technologies will be used to provide a 3D scan of underground service lines, guaranteeing delivery of all relevant data and the accuracy of the geospatial database. This includes details such as the irrigation, sewage, and rainwater lines, along with road lighting lines and power and water lines data.

01 KUWAIT

02 SAUDI ARABIA

05 UNITED ARAB EMIRATES

07 UNITED ARAB EMIRATES World’s first 3D-printed mosque to be developed in Dubai

The world’s first 3D-printed mosque will be developed over the next two years in Bur Dubai, according to Dubai’s Islamic Affairs and Charitable Activities Department (IACAD).

Once complete in 2025, the 2,000sqm facility will house 600 worshipers.

It will take approximately four months to complete the 3D printing of the building’s structure, followed by another 12 months to fully fit out the building.

The cost of building the mosque will be 30% more than usual, as it is the first of its kind in the world.

EMIRATES Yas Holding launches real estate division Taraf

08 UNITED ARAB

Investment company Yas Holding has launched a real estate division that aims to ‘bring a new standard of luxury, highquality and uniquely crafted properties to residents and investors in the UAE and beyond’. The launch of Taraf is said to be part of a diversification and growth push for Yas Holding. The developer said it will introduce ‘five thoughtfully designed properties in the UAE during 2023’. Taraf will deliver curated and exclusive residential properties in prime locations across the UAE, for national and international clients.

09

AWC to invest US$30.6m to renovate and improve Bangkok’s The Empire tower

Asset World Corp Public Company (AWC) has announced plans to invest US $30.6mn to renovate and add lifestyle places to The Empire, the group’s largest office tower, in Bangkok. The launch of the ‘Co-Living Collective: Empower Future’ at The Empire will turn the tower into a new lifestyle space that embraces the future of work-life integration.

With a total area of 1,500sqm spanning across the 53rd floor, the coliving space of The Empire aims to create a new benchmark for Thailand.

THAILAND

Dubai Full Year Market Report for 2022

Richard Waind, group managing director, summarises the performance of Dubai’s real estate market in 2022, in Betterhomes’ Dubai Real Estate Market Report for 2022

What a year 2022 was for the Dubai real estate market. A new record was set for the volume and value

of residential transactions, new heights were reached for luxury homes, and Dubai confirmed its status as the number one destination for global citizens seeking safety, opportunity, and an unrivalled lifestyle.

After the initial surge we witnessed in 2021, the market started to show signs of stabilisation in 2022. As we enter 2023, we can be confident that the outlook looks healthy. The volume of transactions for ready units was consistent over the last three quarters, and the pace of price increases has slowed to sustainable single digits. The Dubai Land Department (DLD) ushered in an era of greater transparency with the Open Data initiative, and the high prevalence of end users and resident buyers gives confidence about the long-term stability of the market.

Looking ahead to 2023, we can expect more of the same. Supply of both new and ready property will remain constrained,

while Dubai is likely to continue to attract new residents and investors, ensuring transactions remain strong. Interest rates are likely to remain at current levels, or slightly higher, for at least the first half of the year, which will impact affordability and keep sales prices in the secondary market in check. The off-plan and luxury markets are likely to remain on an upward trajectory as new launches fill the gap created by the current lack of ready property.

High rates of renewal and low rates of transiency in the face of rising rents will keep rental inventories low again in 2023. Coupled with a growing population and a lack of new homes being delivered, we can expect further rises in rents. This will be welcome news to investors who have seen average yields rise to 6.5%, and it is likely to result in greater tenant demand for more rural periphery communities in the coming months.

UNITED ARAB EMIRATES

TOTAL VALUE OF SALES TRANSACTIONS (OFF-PLAN VS SECONDARY), AED BILLIONS TRANSFERRED OFF-PLAN

The off-plan and luxury markets are likely to remain on an upward trajectory as new launches fill the gap created by the current lack of ready property”

TOP THREE COMMUNITIES BY BUYER DEMAND

2. Palm Jumeirah

1. Dubai Marina

2. The Springs

3. Mudon

3. Business Bay

1. Dubai Land

The Changing Role of Project Management

MIDDLE EAST

When you ask Engineering and Construction (E&C) professionals if they would like to change the way their firm operates, most will eagerly say ‘Yes’. If you ask them whether they want to change, then the ‘Yes’ answers would be uttered with less excitement because of the difficulties that they know about. If the question turns into whether they can change, then the answers turn into a whispered ‘No’!

As in all industries, E&C is flooded with business/management and technical problems. However, the interesting

aspect is that most of these problems are common across all companies, with very few exemptions. These problems can be categorised whether they fall within the control of the firm’s senior executives or not.

In management thinking and practice, skilled management (the people who lead and manage the firm) concentrates on what it can control, do, and change, while leaving space for contingencies and scenarios for the issues that it cannot control. Why is this easier said than done? Because managing firms in complex industries is a difficult undertaking.

Let’s initially consider the two ecosystems that deal with value creation in E&C project-

Fadi Bayoud, director of Strategic Anchors, discusses the transformation challenges and change hurdles in the engineering and construction sectors

based firms; the first is the project-based ecosystem that creates value; and the second is the corporate-based ecosystem that supports the value creation. Any attempts of finding solutions that do not holistically align these two ecosystems will only fall short to successfully lead the firm through the industry’s uncertainties, complexities, and disruptions.

Each of these two ecosystems require a different set of management tools and expertise, but they must be linked to create the holistic value that management seeks. For example, a firm cannot reap the benefits of having an excellent operations director, or even an excellent CxO team,

when its project and construction managers and engineers are of poor or mediocre calibre.

It is not a secret to state the fact that project management in the E&C industry is hovering around mediocrity, at best! This is a bad reality, especially since many of the problems mentioned above are solved, in the majority, by project personnel. Moreover, having high-calibre project personnel can altogether prevent the occurrence of these problems.

What contributes in failing to build a holistic value for the firm – and for the industry as a whole – is the unfortunate trend of management blaming project personnel for being poor or

mediocre, when management itself does not support them with fit-for-purpose construction project management processes, or documentations that are aligned and linked with ISO standards (9001, 14000, 45000), and ERP systems that they are properly trained upon, followed without exemptions, and maintained to reflect clients’ needs and industry changes. Management must consider that young project personnel got employed because they have the minimum requirements, which is in most cases a university degree. However, they do not carry skills in project management and thus they must learn it, either by observing

and doing (and in many cases, what they are currently observing is not worth learning), or by getting trained and upskilled to think of projects as a business, technical, and managing endeavours. As engineering knowledge must be learnt, so must construction project management knowledge.

To clarify, the benefits of what a well-established (aligned and linked to ISO and ERP), welltrained upon, and fit-for-purpose construction project management process and documentations can do for the project are:

• Provide better alignment between different internal stakeholders.

• Ensure better understanding

EIGHT STEPS FOR THE SUCCESSFUL IMPLEMENTATION OF A CHANGE INITIATIVE FROM DR JOHN PAUL KOTTER

Steps

Create a Sense of Urgency

Build a Guiding Coalition

Comments addressed to the Management

Most of E&C firms share the same set of problems. There is no need to hide; face it and state the existing situation, and inspire people to think about a better future

Pick up visionaries, high-flyers, and those who are eager to improve and grow.

Search for those young site engineers who complain about the current situation; they might not be the best of technical engineers, but they might have a holistic view on things and thus can become good managers.

Train them and make them actively participate in the coalition

Form a Strategic Vision and its plan

Agree on a vision where the above-mentioned problems are minimised or even avoided. Put forward a narrative on how this vision can benefit you company, your people, and your clients and partners.

Let the team participate in putting the plan to achieve the vision.

Enlist a Volunteer Army

The vision and plan must cover all the topics but choose a list of priorities.

Pick up a department or a project that is led by a visionary manager and rally its people and your coalition around the priorities related to this department or project.

Enable Action by Removing Barriers and soften the opinions of naysayers

Generate Short-Term Wins

Empower people and help them see the pig picture. Remove unnecessary bureaucratic red tapes. Dare to challenge your previous decisions.

Do not allow the naysayers to hold things, despite their apparent power

Every change counts. Celebrate the change in a procedure or workflow, for example. Make sure that the changes are properly implemented in the project management and ISO manuals/documents, and in the ERP if applicable.

Sustain Acceleration

Institute Change

Learn from the successes and failures. Do not get discouraged. Think of the big picture and keep talking about it. Keep the momentum on-going, reward the success

Link these changes to the strategic vision and firms’ values, and wisely institute the change

PROBLEMS THAT ARE COMMON ACROSS MOST ENGINEERING AND CONSTRUCTION FIRMS

of the relationship with external stakeholders.

• Improvement on performance and productivity because obligations, duties, responsibilities, and accountabilities are clear.

• Clarity on schedules and inherent risks for better planning and follow-up

• Access to the required procedures and method statements

• Visibility on technical and business risks to avoid delays and disruptions.

• Production with highquality workmanship that abides with HSE.

• Elimination of bad behaviours and minimum tolerance

for poor performance

• Minimisation of time and material waste that improves performance and productivity.

• Avoidance of wrong, delayed, and/or missing paperwork and reporting.

• Improvement on progress reporting that can minimise billing issues and consequently cashflow disruptions.

• Better management of subcontractors, with all the good things that come with it

• Transparency for better relationship with Engineer/ Consultant and Client

• Building holistic business and project management thinking that encourages innovation to solve ad-hoc problems.

•

To

A NOTE ON CHANGE MANAGEMENT

As per Doctor John Paul Kotter, the Professor at Harvard Business School on leadership and Change, these are the eight steps for successful implementation of a change initiative: Through my project work, I have conducted a lot of research

on both successful and failed initiatives, advisory work (my successful and failed ones), and discussions with many CxO’s and directors. It was apparent that most of the firms likes and wants to change; however, only few could.

Those who could (and I know many of them) were able to combine strong strategic and operational thinking, dared to navigate through the ocean of obstacles and hurdles, and succeeded in negotiating the needs and wants of their people with the interests of the future of the firm.

Easily said that done? Yes! And the first steps are always hard. Is there a chance of failure? Yes, of course; but we learn from our failures to succeed later.

About The Event

Winning an inaugural ME Digital Construction Award will be a recognised badge of excellence amongst your clients and peers.

These awards celebrate the technology champions who have played a key role in the digitalisation of the construction industry, which is at the heart of the GCC economy.

These awards celebrate the companies, organisations and solutions providers whose construction technology solutions lead the way – whose 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, which has seen digitalisation become a pillar of the industry.

The inaugural ME Digital Construction Awards is brought to you by Big Project ME, one of the leading trade titles in the region.

To ensure complete objectivity, the Awards are judged by a specially recruited judging panel and

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are influenced by one criteria only – the informed decision that they are truly the best-in-class.

We look forward to honouring your business.

Judged By Professionals

Built around the concept of transparency and clarity, the awards are decided upon by an independent panel of judges from across the spectrum of the industry.

Given that the awards are targeted at the digital construction technology industry, the editorial team take considerable efforts to ensure that nominees are assessed by the appropriate experts who have a chance to assess nominations both individually, and in a group discussion. This ensures that winners are chosen on the basis of the work they do over the course of the year, and on the reputations, they develop with the industry.

At CPI Trade Media, we are proud to state that our awards are unbiased, transparent and fair, with no external influences on the decisionmaking process.

Award Nomination Enquiries

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

Table Booking & Sponsorship

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Madeleine Martin | +971 4 375 55714 madeleine.martin@cpitrademedia.com

2023

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Leading the Digital Journey

BIG PROJECT ME SPEAKS TO MOHAMED SWIDAN, SENIOR DIRECTOR AND HEAD OF MENA AT PROCORE , ABOUT HOW THE USBASED SOFTWARE FIRM IS HELPING DRIVE THE REGIONAL DIGITAL TRANSFORMATION AND IMPROVE UNDERSTANDING AROUND DATA IN THE CONSTRUCTION SECTOR

n September last year, Procore, a leading global provider of construction management software, announced the opening of its first office in the Middle East and North Africa (MENA) region. Located in Dubai Internet City, the office opening follows a successful launch in 2021, and is a reflection of the company’s long-term investment and vision for the region.

While the new base is emblematic of Procore’s continued growth and expansion, it is also key to the company’s ambitions as it will serve as a hub for its operations in the region, enabling its varied client base of owners, general contractors, and specialty contractors to build smarter.

As the regional construction industry tips further towards digitalisation, Procore’s focus on accelerating collaboration, streamlining communication, and providing realtime visibility into project performance will be vital in helping the sector work

towards successfully delivering agendas such as Saudi Arabia’s Vision 2030 and the Dubai 2040 Urban Master Plan. With the US-based software firm’s ethos being built around being a partner to its clients, having a local presence will be key to its strategy moving forwards. Mohamed Swidan, senior director and head of MENA, tells Big Project ME that Procore now will be able to play an integral part in helping companies realise their potential with a local base in place.

“The office opening is a milestone in a journey. It’s not the end goal. When

we started our regional operations in January 2021, we began by building a team on the ground to better serve our customers, partners, and channels. We wanted to make sure that as we’re building the team, we continue on our journey and our commitment to the region, so the office really is just a milestone in that journey, from a commitment point of view.

“People have received it very positively, and the industry sees it as a renewed commitment from Procore to the market. We have every single

The secret power of any organisation is its people. We’ve hired outstanding talent that’s quite well versed - not only with the region, but also with the industry as we’ve got a number of individuals from a construction technology background”

customer touchpoint in the region, so our customers get to enjoy the full customer journey with us, from the start, with people who are serving them and catering to them within their lifelong journey with Procore,” he asserts.

Since 2021, Swidan has hired a team of more than 20 people, all based locally in the Dubai office. This team has the technical knowledge and resources to meet a variety of customer needs, including sales, marketing, implementation, customer success and more. According to Swidan, this team is the secret behind the company’s successful launch over the last two years.

“I think the secret power of any organisation is its people. We’ve hired outstanding talent that’s quite well versed – not only with the region, but also with the industry as we’ve got a number of individuals on this team

who’ve come from either a construction technology background or have come from the construction industry itself.” 2022 proved to be a successful year for Procore, with the team overseeing strong performances across the board in terms of customer acquisition, brand building, and ability to serve existing customers all receiving positive marks. The company’s primary markets in the region – Egypt, KSA, UAE – have seen new customers added to its portfolio, and everything is primed for a big 2023, he states. However, now that all the pieces are in place, Swidan asserts that he is keen for Procore to be a force for change within the construction sector. With digitalisation becoming increasingly important across all facets of the industry, he points out that adopting technology will not only have a transformative impact on an

organisation’s abilities and services, but it will change the entire way it operates.

“Our strategy is to be a partner to the industry and make sure that we’re impacting every single individual in the construction world,” he says.

“We want to change people’s lives in the construction industry, and make sure that we’re assisting organisations in their journey and helping them to digitise so that they can be more efficient and productive, more profitable, and can focus on the areas where they can grow.”

“What our customers are asking us for is to make it easier for them to use technology. That’s their biggest ask. They want to make sure that with this change, their employees and their organisations will jump on the bandwagon and not resist for the longest period. It’s only human nature for any

Procore currently has 17 offices around the world

individual to push back against change when it’s happening, and that’s okay.”

Swidan explains that given that mindset, it is critical that companies like Procore ensure that whatever solutions they offer to the market must be easy for every individual to use – from office to the site. And as part of their offerings, solution providers should help organisations drive that change internally, he adds.

Another key request often heard from clients is that when developing a product, the focus remains constructioncentric, he explains. Swidan points out that software developers need to keep this in mind when thinking about trends of the future and preparing and building their products accordingly.

However, a major roadblock is that there is significant resistance to change within the industry, with methods and

attitudes ingrained in organisations –especially ones that have been successful while doing things in the traditional way.

“It’s not that they lack experience or have a lack of expertise, but the roadblock is to accept change, to do things differently after decades of doing things a certain way. It’s not easy (for them). The second roadblock that we’ve encountered is the idea that digital transformation is a one step process. That’s never going to be the case.

“Digital transformation is a continuous journey that does not end with you investing in a certain technology on day one, and that’s it. It’s an aspiration to reach a state where you grow as an organisation and as technologies advance, you actually benefit from them and they serve each other and your organisation.”

One of the major issues encountered while helping clients on their digital

transformation journey is what Swidan calls ‘patching up’. This is when disparate technologies are bought to fix particular issues, and in the end, they end up operating in silos and not talking to each other.

“You think you’re digitally transforming (when you do this), but you’re not. You’re just trying to patch things up. When you start thinking of digital transformation, it’s about how you select a vendor – a technology partner – that will serve you today, tomorrow, and for years to come,” he asserts, adding that it is critical for an organisation to choose a partner that will assist it, and allow it to integrate with other technologies, rather than one that creates bottlenecks for growth.

“We are in a region that’s continuously aspiring to be better and driven to excellence, which means there

Local expertise Procore will be able to offer its clients in the MENA region a local presence, with staff familiar with the regional and local construction industries.

86% of owners say Procore helps standardise processes across all projects

are new initiatives and projects the whole time. The challenge for organisations is that as they’re running, they don’t have time to stop and reassess, to build a strategy for the future with the use of technology – that drives a lot of the attitude and behaviour, in the sense of, ‘let’s just patch it up along the way’.

“It’s important to realise that not doing something, and focusing and reflecting before building a strategy, is good time investment – one that is often better than building a project along the way.”

What gives Swidan hope is that there is a new generation of construction professionals coming into the industry who are well versed with technology, are familiar with it, and understand its capabilities. However, it is imperative that leaders in the construction sphere listen and take on the responsibility to drive change.

“I honestly think that it’s our responsibility as leaders to drive the change, because if we don’t, we will end up having a talent issue in the coming years. It sits at the leaders’

level to accept that the world has changed, and that we need to adapt to that change, and in fact, drive it and amplify it in every conversation.

“When you look at young talent joining industries, they will definitely create some noise on what their demands and asks are. If they’re not listened to or are not served, then they’ll quickly start looking somewhere else for that to be given to them,” he warns, adding that the decisions made by leaders now, will have an impact on communities and societies both in this generation and the next.

Another crucial area of focus for Swidan and his team in the coming year will be educating their customers about the importance of data and how to properly harness its power, especially in the context of the region’s smart city ambitions and its desire to adopt new and innovative ways of operating and maintaining utilities and infrastructure.

“When you look at transformations or organisations that want to make data-driven decisions, there is always a shortage of data. They’re always trying to find data so that they can understand trends and predict the future. Construction has no shortage of data, and that’s a very strong starting position.

“The challenge is how that data is being captured. When you start looking at that historically, there is not a single ‘one space’ where the

It’s our responsibility as leaders to drive the change, because if we don’t, we will end up having a talent issue in the coming years. It sits at the leaders’ level to accept that the world has changed, and that we need to adapt to that change”

Creating noise

Young talent entering the construction sector will demand that it adopt technology and change with the times, Swidan says. Long-term partner Procore intends to be a long-term partner for its clients in the MENA region, and will support them throughout their digital journeys.

data is being collected. It’s being collected across different places. As I was saying earlier, you can buy technologies that patch things up, but they don’t necessarily serve your way and strategy forward. When you start taking that into consideration, then you’re not really benefiting from the data, you’re just inputting it into certain systems and manual processes.

“The biggest thing is that we need to make sure that data is inputted into one common data environment, and if we start there, then with the amount of data that is available in construction, then that’s a strong base to start from - a single place from which you can build actionable insights. That will help build predictability, that will build a comprehensive pool of information that will serve you in the future,” he explains, pointing out that inputting data into a common environment will help organisations keep pace with the change around them.

While he acknowledges that there are concerns about sharing of information, he allays fears by explaining that there are different types of data – private and public.

In this region, companies have the power to publish data that will serve them best, rather than giving rivals a competitive advantage.

“You’re simply getting your house in order, more than anything else. If you’re looking at it in terms of gaining

a competitive advantage, then you’re doing it for you. If you’re looking at data in terms of it being shared, it’s not. It’s your own organisation, your own team, and people.

“If you look at the historical way of doing things, drawings are left at site and that’s more dangerous for someone to pick up a competitive advantage, than data that’s sitting with a lot of security behind the technology and with access that’s granted based on who you are and where you work.

“We’re in more control of what we want to share or don’t want to share,” he asserts.

As the region continues to advance and evolve rapidly across all sectors of the economy, Swidan says that Procore will be front and centre, supporting the construction sector through this period of change. As such, he is keen to ensure

that the right foundations are put in place to ensure every organisation and professional in the industry can enjoy the long-term benefits on offer.

“Our responsibility as a company towards this industry is to continue to nurture and educate. It’s our responsibility to share that knowledge from our perspective and ensure that we’re enlightening them on how technology can serve them best. We’ve got to establish that base first – you can’t build something without the right foundations, right?

“It’s about helping them realise that digital transformation is a journey, and what the building blocks are for it. We must have them understand how we can support them in that journey, and how we can support them with one single source of truth,” he states in conclusion.

16% Users surveyed said Procore reduced rework by 16%

Building

blocks Mohamed Swidan asserts that organisations need to understand the importance of putting in place the building blocks for digital transformation.

Our responsibility as a company towards this industry is to continue to nurture and educate. It’s our responsibility to share knowledge from our perspective and ensure we’re enlightening how technology can serve them best”

Energy & Sustainability Summit

Rapidly increasing investment in sustainable construction, environmentally friendly technologies, and renewable energy infrastructure has sparked an energy revolution in the MENA region.

Billions of dollars are being poured into the construction and energy sectors as companies look to create a new ecosystem of green construction technologies and alternative energy solutions, with government bodies often leading the way.

This year, the Energy & Sustainability Summit will focus on the growing global focus on investing into green construction methods, supporting start-ups in the green built environment,

Participation

Opportunity

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

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and the rise in off-grid and alternative and renewable energy solutions – particular green hydrogen, solar and wind.

The Summit will also welcome companies and speakers who are exploring and researching sustainable building solutions, ranging from products, through to systems and technologies.

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

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

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n December 2022, at Big Project ME’s sister awards, the Middle East Consultant Awards, Pace’s New Palace of Justice project was crowned as the ‘Best Project’ in the category of Government and Infrastructure.

Chosen as the winner in a category that recognises the region’s top infrastructure projects for the government sector, the accolade came from a jury of industry experts who praised the project as one that has had a positive impact on society.

The New Palace of Justice, with its smart building, constitutes a huge change in the work of judicial authorities in the Middle East. The project aims to better serve the community through enhanced central smart judicial facility. It has also put Kuwait on the map of delivering high end world-class architecture.

A colossal project utmost significance, the New Palace of Justice is a testament to the State’s ongoing evolution and modernisation. Upon its completion, the landmark building is slated to become the largest judicial

70% Percentage of overall completed works

building in size in the Middle East and will be amongst the largest in the world. Situated in the heart of Kuwait City along the Arabian Gulf, the project soars 26 storeys above ground, and covers an area of 33,384.50 sqm. The US$785.4 million project houses more than 141 courtrooms and around 131,000 square metres of office space. Engaged by the Amiri Diwan, Pace was tasked with rebuilding and expanding the historic Palace of Justice in Kuwait City, the firm came up with a unique and modern design focused on creating a monolith structure, abstractly, but sophisticatedly representing the scale of justice,

with a solid plaza and two floating cantilevered towers, or ‘wings’.

Additionally, the two fractions of the building are joined together to create a glistening hollow expanse in its centre, which compliments the opulent design by resembling a golden geode inspired by the traditional geometry of the Middle East. Underneath the towers sits a public plaza which forms the entryway into the entire facility, with its open and transparent welcoming concourse.

Highlighting the unique and awardnominated design of the project, Pace CEO, Tarek Shuaib says: “We succeeded in realising our shared vision with the client for the project - and its subsequent real-world aesthetic features. This entailed modernising and upgrading the justice system – and create a grand structure that reflects that significance with highly advanced smart technologies and facilities.”

He adds that Pace sought a design that would reflect Kuwait’s enduring commitment to justice and communicate solidarity and a strong foundation for all new beginnings, with every feature supporting its dual functionality as a space for both the people and the government.

Functionality for this project involved an efficient planning strategy which was accomplished with a design that serves to separate the three types of circulation systems required: Public, Private (Judicial) and Defendants.

Serving the community

The New Palace of Justice aims to better serve the Kuwaiti community via an enhanced central smart judicial facility.

We succeeded in realising our shared vision with the client for the project. This entailed modernising and upgrading the justice system – and create a grand structure with highly advanced smart technologies and facilities”

The monolith structure houses two fractions that are joined together to create a glistening hollow expanse in the centre, which resembles a golden geode inspired by the traditional geometry of the Middle East. Underneath the towers sits a public plaza which forms the entryway into the entire facility, with its open and transparent welcoming concourse. The 20-floor atrium, spanning between the geode segments and interlaced with bridges, creates an abundant sense of movement and circulation.

The outdoor courtyard is where people can rest and enjoy the surrounding views of the sea and cityscape. As visitors continue their journeys inside the building, soft strands of natural light permeate the golden mesh facade into the hallways. The external facade module was devised with optimal window sizes to provide ample natural sunlight cast through the golden geode, which improves wellbeing and productivity.

The external facade module was devised with optimal window sizes to provide ample natural sunlight cast through the golden geode, which can improve the well-being and productivity of its occupants. Also, as visitors continue their journeys inside the building, soft strands of natural light permeate the golden mesh facade into the hallways. In terms of the building’s landscape architecture, Pace’s concept of the Storming Skies blurs the line between pure landscaping and art. With the use of hanging metal bars over the plaza, the illusion of a storm cloud is created. A visitor’s perception of these clouds would change relative to their position in the building.

FAST-TRACK CONSTRUCTION

The project has achieved record completion rates through the use of Fast Track technology, one of the latest rapid construction methodologies which relies on advanced, sophisticated

Record completion

The project has achieved record completion rates through the use of Fast Track technology, one of the latest rapid construction methodologies.

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and highly efficient construction, in a manner that guarantees the highest quality of implementation.

In terms of complexity and how it was overcome, having been proposed and designed to replace an existing Palace of Justice building – the high rise and fast track techniques employed within this location that is the busy metropolis of Kuwait City has been a challenge. Advanced structural methods were employed to have two large 20+ story towers cantilevered.

Construction works are progressing according to the project’s timeframe, despite the added challenges and limitations imposed by the pandemic and previous lockdown enforcement.

PROGRESS UPDATE

Construction progress reached almost 70% to date, having broken ground during the first quarter of 2019 only.

Utilising Fast-Track construction technologies,

The project houses more than 141 courtrooms and around 131,000 square metres of office space

Pace managed to complete:

• All structural works in Phase 1.

• 60% of external façade works

• 65% of MEP works

• 60% of elevators and escalators installations.

• 55% of internal finishes, even though environmental enclosure has yet to be achieved.

Phase One procurement is complete, and all materials are either on site or in storage.

Phase Two procurement is well progressed with some materials

already delivered, some in transit, and the reminder under fabrication.

Site works commenced with the removal of the existing parking lot of the old building and the erection of the new structure in its place, parallel to the existing Palace – which will be subsequently demolished and replaced. Works currently underway include the installation of pre-cast concrete panels at the building’s perimeter envelope, while validating the site’s readiness for upcoming stone cladding and aluminium curtain walls installation.

Safety first Everyone working on the project has been equipped with the necessary safety equipment and personal protective equipment, and health and safety is the utmost priority on site.

Pace is fast-tracking floor slabs concrete casting and processing Electro-Mechanical installations and ducting works following the concrete activities completed at each floor. The construction team is also installing internal partitioning studs and underlaying terrazzo flooring for every casted floor to overlap construction activities and fast track the schedule of works, along with the relocation and refurbishment of services and utilities.

HEALTH AND SAFETY PRIORITISED

Finally, Pace states that it has been committed to keeping the project on track during these critical times. Health and safety measures have been an utmost priority on site for Pace, with the project’s entire team committed to upholding the highest standards of health and safety during all phases of construction.

Works have resumed with a heightened focus on the health, safety, and wellbeing of all those involved – including workers, site engineers and office staff.

Internal finishes 55% of internal finishes have been completed, even though environmental enclosure has yet to be achieved, the team say.

All those working on the project are always equipped with their all the necessary safety equipment and personal protective equipment (PPE), including face masks, goggles or face shields, safety vests and shoes. Social distancing guidelines are also being closely observed throughout the project, the firm concludes.

Aligning with Objectives

BIG PROJECT ME SPEAKS TO MADHAV DHAR, CO-FOUNDER AND COO OF ZAZEN PROPERTIES, ABOUT THE DUBAI-BASED DEVELOPER’S SUSTAINABILITY FOCUSED PROJECTS, AND EXPECTATIONS FOR THE REAL ESTATE SECTOR IN 2023

s the UAE pushes forwards with key initiatives around sustainability, including the Dubai 2040 Urban Masterplan and UAE Net Zero 2050, there is tremendous scope for real estate developers to adopt and incorporate environmentally friendly initiatives in their projects.

Dubai has seen increasingly high demand for off-plan real estate in 2022, with the segment growing by 130% and US$7 billion recorded in sales transactions as of October 2022. These figures represent the highest value of transactions in a decade, and with COP 28 set to be held in the UAE this year, sustainable real estate is set to be a major contributor to the anticipated continued strong momentum in 2023.

ZāZen Properties, the Dubaibased sustainable property developer, recently launched sales for its newest project, ZāZen Gardens, a LEED-Goldcertified in Al Furjan. The launch follows the successful debut of the

developer’s ZāZen One residential project, which was completed in January 2022 and sold out in months.

The developer cites that real estate transactions in Dubai’s off-plan sector increased by 92.5% in 2022. This increase in off-plan real estate sales reflects the return of developers who are launching new projects to meet the growing demand for high quality residential apartments, especially in areas like Al Furjan.

In the second part of our interview with Madhav Dar, co-founder and COO of ZāZen Properties, Big Project ME explores the developer’s plans and takes an in-depth look at Dhar’s views

of a real estate sector that is poised for exponential growth this year.

What has the response been like for ZāZEN Gardens and ZāZEN One and why have you gone down this route of focusing on sustainability?

ZāZEN Gardens is on pace to follow a similar sales trajectory to that of ZāZEN One and sell out in a matter of months. The latter, our first development, has been repeatedly nominated for its design and sustainability efforts for carving out niche living spaces in the vibrant Jumeirah Village Triangle (JVT) community. Sales interest in ZāZEN Gardens is significant, and we are optimistic that it will garner comparable recognition to that of its predecessor.

ZāZEN Properties designs and builds modern, inspiring spaces for people to live, work and grow, while protecting the environment and their health. Each space is built with the customer in mind; conceptualised from the ground up and designed based on how they live – and not what’s easy to sell.

The company’s goal is to help people in the UAE live better by providing carefully tailored homes instead of apartments, and a sense of community instead of a building. Our over arching objective is to align with key UAE initiatives, like Dubai 2040 and UAE Net Zero 2050, to help achieve both regional and global targets, while positioning the company as a homegrown brand that pushes the limits of what a ‘midmarket product’ should look like.

Why have you chosen Al Furjan as the location for your projects?

Al Furjan is a rapidly growing micro community within Dubai and has been extremely popular over the last 18 months, with multiple offplan launches by master and private developers alike. At the beginning of this year, the metro line was expanded with four stations within that area, with Al Furjan being one of them.

Being a sustainable, community focused, developer, our project locations have focused on established communities that have services, amenities, and connectivity nearby. It allows for people to get to know their neighbours, for

Living better ZaZen Properties designs and builds spaces for people to live, work, and grow, helping them to live better, says Madhav Dhar.

Rapidly growing Al Furjan was chosen as the location for ZaZen Gardens because it is a rapidly growing micro community in Dubai.

communities to be developed within smaller catchment areas, encourages residents to interact with each other at the parks, sports areas or at community events and even allows them to benefit from public transport options.

Moreover, with many amenities being shared between subcommunities of the district, the added convenience of supermarkets, clubhouses, schools, restaurants, and sports facilities can provide added value that benefits investors, residents, and tenants.

What are your thoughts on the market moving into 2023? What are the likely opportunities and challenges?

As it stands today, Dubai’s real estate prices are poised to continue increasing or at least hold steady. Globally, there are concerns of a looming recession,

but the UAE continues to be viewed as a leading destination for its deft handling of the pandemic, proven ability to sustain itself in times of turbulence, its unparalleled safety, and several other reasons that are set to sustain the country’s real estate momentum. Moreover, Dubai remains appealing as one of the top-five most visited cities in the world and an ideal place for expatriates to live and work in, with foreigners making up about 90% of the country’s population. The ongoing remote and work-from-home revolution, the opening up of the UAE Golden Visa residency program, a pick-up in immigration, and a continued influx of HNWIs, are among other contributing factors that will allow the real estate growth in the city to sustain.

With eight billion people in the world, growth of about 20% is expected

through 2050 to bring this figure to nearly 10 billion; this will spur demand for essential needs like housing and responsible solutions must be adopted to combat the negative environmental impact of an increasing population.

Initiatives such as the ‘UAE’s Fourth Industrial Revolution Strategy’ and ‘Operation 300Bn’, which are respectively targeting diversification by means of innovation, and reducing dependence on global supply chains to bolster the national economy, must accordingly be emphasized by the country’s real estate developers to create a more sustainable future for both current and future residents of the planet.

There has been a resurgence in off-plan sales – do you think this momentum will be sustained? Why are we seeing

25% Dubai plans to have 25% of all journeys driverless by 2030

Leading destination

The developer says that it believes that the UAE will continue to be a leading destination for expatriates to live and work in.

an increase in interest in it?

Dubai’s real estate growth has been supplemented by the remarkable success of off-plan transactions, which rose by 86% when compared to 2021. The value of these deals made up 44% of all transactions in 2022. Volatile market conditions saw shifts in consumer behaviour last year, and the market saw a record-breaking performance due to increased demand.

The UAE Golden Visa scheme, the country’s efforts to ramp up its diversification away from oil, and the Qatar World Cup are just a few of the driving forces behind the off-plan resurgence; the momentum is projected to maintain its upward trajectory with the UAE construction market expected to reach a value of US$133.53 billion by 2027.

Flexible payment plans, buyer’s protection laws, tax-free investment,

high rental ROI, an extensive selection, and valuable capital gains are key incentives for potential off-plan investors, and this is spurring an increased interest in the segment.

Do you feel that there is an oversupply in the market in certain segments? Do you intend to pivot ZāZEN to other market segments in response?

With the increased focus on expanding the industrial and manufacturing segment and the introduction of the new UAE Tourism strategy, the country and especially Dubai will see its population surge, leading to more demand for housing. So, there is no oversupply if you take a mid to long term outlook.

The high-end segment in fact is under supplied and due to that, will see prices stay relatively stable over the next

two to three years, until fresh supply is delivered in the market. Since rents have outpaced home price growth over the past year, the mid to low end segment will be open to end users, who are now serious about staying in Dubai long term, as well as investors who are looking to capitalise on attractive payment plans and earn rental income in Dubai.

As it pertains to ZāZEN, we are not limited to the types of developments we make. Our main goal is to add value whether it be in Al Furjan or Palm Jumeirah.

What are your plans for ZāZEN Properties in 2023 and beyond?

We still have a land bank which we will continue to develop. Our goal is to continue to pave the way for sustainable developments in Dubai. We will also look to start working with other landowners, to

44% Off-plan transactions made up 44% of all real estate deals in 2022

Long-term plans

The mid-to-low end segment will be open to end users looking to stay in Dubai long term.

educate them on the benefits of building sustainably while still making a profit. We will also continue to align with the Dubai 2040 Urban Masterplan, which is exactly how we have always envisioned the city to be, and the UAE 2050 net zero commitment. Ideally, we would like to get into master developments. However, the value, the opportunity and time must be right for that. When that comes, we will be ready for the challenge. For now, we are focused on building sustainable communities within a building, all while not compromising on quality, amenities, and your well-being.

Are you planning on moving beyond Dubai?

Not at this stage with our own land bank. We would love to explore other parts of this great nation in the near future. 2023 may not be the right time, but you never know what comes up, vis a vis a joint venture opportunity.

What are your thoughts on Dubai’s ambitions of turning itself into a smart and sustainable city? How can developers like ZāZEN take advantage of this desire for change?

The UAE is one of the most forwardthinking countries in the world and Dubai is a city that is ahead of the global curve in many aspects. While the country is planning to build the first city on Mars by 2117, the emirate has planned to have

25% of journeys driverless by 2030 . These are just some of the several pioneering efforts that are being made in the nation. In terms of the UAE’s drive to become smart and sustainable, developers must follow suit with projects that complement these ambitions. With technology and innovation having shaped the current state of the world, and convenience being prioritised by people all over, UAE developers can tailor their projects to meet the needs of the country’s residents accordingly.

Building LEED-certified or Well-Being focused projects is a strong starting point to ensure that all types of residences are

Aligning with the masterplan Dhar says that ZaZen Properties will continue to align with Dubai’s 2040 Urban Masterplan and the UAE’s 2050 net zero commitment. Sustainability focused ZaZen Properties will focus on sustainable developments that preserve the environment and provide energy and cost savings.

sustainable developments that preserve the environment, provide cost and energysaving benefits, all while being a healthy environment for you and your family.

What are some of the most essential ways developers can help improve the quality of life for residents and cities?

This is a very subjective question. What makes your life ‘better’ may not work for others. So, it’s very hard for developers to gauge what works. For example, ZāZEN Gardens has introduced the concept of integrated Well-Being design. Many people may not understand this or even feel that it’s just a gimmick, as they can’t touch or feel it. But as a developer it is our job to push these boundaries and try to educate customers when they come in. If we can add value to their lives without hurting their pocket too much, they will be happy. And once the project is ready and people move in, word of mouth takes over to add value to our claim.

That being said, we believe that creating healthy and sustainable environments is something that should be basic now. All it really requires is education. Education for customers to understand the benefits so that there is demand. And education for contractors, developers, and the rest of the chain, so that they keep learning, innovating and providing better spaces for people to live, work and grow, just like ZāZEN.

Our goal is to continue to pave the way for sustainable developments in Dubai. We will also look to start working with other landowners, to educate them on the benefits of building sustainably while still making a profit”

AL-AYUNI awarded $266m infrastructure and utility contract for AMAALA

Primary Infrastructure and utility contract will be a critical part of the first phase of development across the Triple Bay masterplan

Red Sea Global (RSG) has awarded a US$266.3mn contract to AL-AYUNI Investment and Contracting Company, for the first phase of development at AMAALA, the ultra-luxury tourism destination located on the Kingdom’s north-western coast across its Triple Bay masterplan.

In a statement, RSG said that the primary infrastructure and utility contract was awarded to AL-AYUNI

based on its overall technical and commercial competencies, as well as its regional and global credentials. It added that all design and construction methods meet RSG’s stringent criteria for end-to-end sustainable development, including economic, financial, social, and institutional factors.

Classified as a ‘First Class’ contractor in the Kingdom since 2006, AL-AYUNI will be responsible for delivering state-of-the-art primary utility infrastructure systems, while minimising Triple Bay’s carbon footprint as part of AMAALA’s commitment towards Net Zero operations, the statement continued.

“This infrastructure deal forms a critical part of Red Sea Global’s ambition to pioneer a new relationship between luxury tourism and the natural environment. The sheer scale of the developments and our relentless pursuit of regenerative tourism require meaningful partnerships that can deliver resilient infrastructure.

“Together with AL-AYUNI Investment and Contracting

1,200 Number of hotel rooms planned for first phase of the AMAALA project

Company, we are confident that we can collectively shape the future of developments in the Kingdom and beyond,” said John Pagano, Group CEO of RSG.

AMAALA’s first phase of development, focused on the Triple Bay masterplan, will encompass eight hotels and upwards of 1,200 hotel keys. Upon full completion in 2027, the destination will offer 3,000 hotel rooms across 25 hotels as well as highend retail establishments, fine dining, wellness, and recreational facilities.

Faheed Al-Ayuni Chairman of ALAYUNI Investment and Contracting Company added: “Red Sea Global is a future-forward developer that is closely aligned with our legacy of innovating world-class solutions, cementing trusted relationships, and setting new benchmarks.”

“It is an honour for us to contribute to its pioneering destinations and we look forward to unlocking the full breadth of our robust capabilities to meet RSG’s ambitious sustainability targets.”