Big Project ME January 2023

Page 1

Licensed by Dubai Development Authority THE BUSINESS OF CONSTRUCTION January 2023 MEConstructionNews.com 200 Champions of Construction BIG PROJECT ME BRINGS TOGETHER THE BEST OF THE REGIONAL CONSTRUCTION SECTOR AT THE BIG PROJECT ME AWARDS 2022

Simran Bragg and Adam Jull discuss the Omnix and IMSCAD partnership, and Ibrahim Imam looks ahead to 2023 12

The Big Picture

14 Market Report

Property Finder report finds that Dubai had a record-breaking year in 2022 16

Analysis

David Clifton of Faithful + Gould, a member of SNC-Lavalin Group, shares his insights on Saudi Arabia’s future in 2023

Profile

30 Event Review

Big

42 Data Management

Rob Clifton of Asite, discusses how data management will play a crucial role in construction as digitalisation picks up pace

48 Final Update

Ithra Dubai says that One Za’abeel has entered final construction works

1 MEConstructionNews.com | January 2023 CONTENTS January 2023 ANALYSIS FEATURES INSIGHT 08 14 16 18 24 30
08 The Briefing
A wrap-up of the biggest international construction news stories for the month
18
Profile Kez Taylor Big Project ME exclusively interviews Kez Taylor following ALEC’s US$100m acquisition of TARGET Engineering
ZāZen Gardens Big Project ME profiles ZāZen Gardens, the new sustainability-focused residential project being built in Al Furjan, by ZāZen Properties
In
24 Project
Project ME celebrates the achievements of the construction industry at the Big Project Awards, which was held on December 15, 2022

Introduction

Two Hundred Not Out

the Year, the Grand Egyptian Museum.

Looking forward to 2023, we’ve got a packed year ahead, with a number of summits and awards in place. Our first major event for the year will be the ME Digital Construction Awards, which will be held on March 15, 2022. This is a brand-new awards ceremony and comes about as a result of the growing digitalisation push happening in the regional construction industry.

This month’s issue marks a special milestone for Big Project ME – our 200th issue of the magazine! It’s been incredible to see how far this title has come since it started out many years ago, and how it has evolved and adapted to the rapidly changing landscape around it.

Having started out as a purely print presence, the magazine has grown to encompass a digital presence (via MEConstructionNews.com), conferences and summits, through to awards and other industry focused events. I’m proud to say that it is now one of the leading titles in the Middle East.

It’s particularly appropriate that this landmark issue also celebrates the 12th anniversary of the Big Project ME Awards, which were held at the Ritz Carlton in JBR, Dubai on December 15, 2022.

As you can see, the awards are our main focus for this landmark issue, and I’m delighted with how they went off. Not only did we have a very healthy number of submissions for the second year in a row –more than 230 – but we also had a number of nominations come in from beyond the GCC – including our winning Project of

The twelve award categories cover projects, providers, companies (both contractor and consultant), and individuals, and are targeted at those companies looking to push the boundaries of construction technology. I’m hoping there’ll be plenty of submissions coming through over the next few weeks – don’t miss out!

Beyond March, we have host of summits happening – some of these will be new additions to the calendar, while others will be returning favourites. With the UAE being the host of COP28, there will be a strong sustainability and green energy focus to everything we do this year, so do stay tuned, it’s going to be a fantastic 12 months!

On that note, I’d like to wish you all a Happy and Prosperous 2023, and I’m looking forward to a successful year ahead!

2 January 2023 | MEConstructionNews.com WELCOME
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Editorial

Champions of Construction

ON THE COVER Big Project ME celebrates the many achievements of the regional construction industry at the 12th Big Project Awards, which was held on December 15, 2022 at the Ritz Carlton JBR

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Licensed by Dubai Development Authority THE BUSINESS OF CONSTRUCTION January 2023 MEConstructionNews.com 200
PROJECT ME BRINGS TOGETHER THE BEST OF THE REGIONAL CONSTRUCTION SECTOR AT THE BIG PROJECT ME AWARDS 2022 4 January 2023 | MEConstructionNews.com
BIG
6 ONLINE January 2023 | MEConstructionNews.com LATEST NEWS FEATURES CONSTRUCTION Modon Properties launches new desert destination in Liwa, Abu Dhabi CONSTRUCTION Khorfakkan Resort due for 2025 completion PROPERTY Muriya launches new luxury waterfront residential resort in Oman SUSTAINABILITY Empower successfully recertifies three ISO standards OPERATIONS Imdaad to provide FM services for Al Nasr Club CONSULTANT: AESG to “strongly penetrate market” with new cost management service INTERVIEW: Omnix and IMSCAD ink deal to bring VDI environments to AEC firms Vote now! 25 JAN 2023 | DUBAI / UAE Honouring the champions of the sectors, rewarding outstanding performance PROPERTY: Dubai real estate boom to continue in 2023, Realiste predicts

FINANCIAL

Sheikh Mohammed bin Rashid launches the Dubai Economic Agenda ‘D33’ The agenda outlines economic targets of US$8.71tn over the next 10 years as well as the rollout of key initiatives to double the size of Dubai’s economy

CONSTRUCTION dnata breaks ground on $14mn cargo warehouse in Iraq The air service provider says it provides quality and reliable ground handling, cargo, catering and retail services at over 120 airports in 19 countries

CONSTRUCTION

DEWA says 58.4% of work completed on $387mn Hatta Hydroelectric Power Plant

The 250MW plant is said to be the first of its kind in the Gulf region and has a lifespan of up to 80 years

CONSTRUCTION

Bahrain invites developers to bid for construction of 700 residential units The homes will be built under the Government Land Development Programme and consist of three separate tenders for leading developers

PROPERTY Arada completes work on US$190.5m Nest in Aljada

purpose-built housing cluster will feature 2,473 fully furnished dormitories spread over 12 apartment blocks

MEConstructionNews.com | January 2023 7 ONLINE
FEATURED NEWS 7 MAR 2023 | DUBAI / UAE Register now for free! Expert intel on Access & Handling, boosting output, functionality and workplace best practice
Dubai real estate boom to continue
TECHNOLOGY Over two million smart metres installed says DEWA
Interactive
installation
CONSTRUCTION AMF: Construction sector worth $187bn
recovery, KSA
way
MOST POPULAR
PROPERTY
in 2023, Realiste predicts
CONSULTANT
lights
comes to City Walk
to regional
leading the
ENERGY SPPC plans to re-tender two IPPs
Premium,
in Saudi Arabia

Value-Add Partnership

Adam Jull of IMSCAD and Simran Bagga of Omnix International discuss the recent partnership agreement between the two firms and the sectors they’ll be targeting in 2023 and beyond

Omnix International and UK-based virtualisation services specialist IMSCAD have announced a partnership. The seeds of the partnership were first laid approximately eight years ago, but in the wake of the COVID-19 pandemic, and the growing appetite in the built environment for digital transformation, as well as the need to work from different locations and devices, the two firms have inked a partnership.

“We work very closely with Autodesk and our skills are around deploying graphical software in a VDI (virtual desktop infrastructure) or cloud environment. This allows people to work more flexibly and on different devices

and such like away from the traditional workstation. Since Omnix and Autodesk have a long history of joint innovation, and Omnix has a broad reseller base, they were the perfect match for us to get into that customer base with our solutions and services,” said Adam Jull, CEO & Founder of IMSCAD.

“We’re effectively a services business and, as we are independent, we go across all solutions, and we just advise our customers on what to do, and then they can decide whether to go ahead or not. To date we’ve got over 700 deployments under our belt and have Autodesk customers globally in VDI or cloud, so we have a lot of experience and expertise that we can offer."

Simran Bagga, Vice President of Omnix Engineering and Foundation

January 2023 | MEConstructionNews.com 8
THE BRIEFING
MIDDLE EAST
Virtualisation
700IMSCAD has carried out more than 700 deployments of its virtual environment solution

Technologies pointed out that Omnix and Autodesk have worked together for over 30 years. She said that her firm was keen to partner with IMSCAD as it sensed a significant opportunity to provide an integrated virtual desktop environment for CAD modelling to customers in the region.

“This hasn’t really been happening in the region because of concerns around security, scalability, and dependability and with hybrid work environments and the outbreak of the pandemic, things have been far more complicated than they need to be and can definitely be simplified going forward.

“Our partnership with IMSCAD will act as a value-add complimentary solution for our current Autodesk partners and customers who are looking to expand their reach, their mindset, their businesses, and how they work and deal with virtual situations in today’s world.

“The partnership with IMSCAD is a win-win because they bring us the technology and the know-how, and we bring them the channel ecosystem, and our experience in the region. We know the region well and have experience of working with partners and customers and they know the technology well. So, I think we complement each other well,” she added.

SHOWCASING THE TECHNOLOGY

Discussing how Omnix and IMSCAD will address the local market, Bagga states: “The big focus for us is on getting partners to be comfortable selling this technology because everybody wants to sell what’s in their comfort zone, and today these solutions are outside that zone. What we’re trying to do here is have a dedicated in-house commercial resource whose job is to pitch the IMSDCAD solutions to our existing channel ecosystem because we have a very healthy channel ecosystem, given the fact that we are a reputed value-added distributor.”

“Following that, we’re going to engage with the market with a number of activities including doing training webinars for our sales and technical partners and customers. We’ve defined a well-structured go to market strategy where we’re saying ‘hey, can we enable

Market focus

Simran Bragga says that Omnix International is looking to focus on the UAE and KSA as its key markets, followed by Kuwait, Qatar, Oman and Bahrain.

and recruit partners to think about this technology’. We’re also looking at how these partners can translate the experience they have to customers, so we’re keen to handpick a few of our partners to tell the story to their customers. We’re looking to put together a number of case studies in the next few months. There’s a lot of heavy lifting to do when it comes to showcasing technology like this.”

there in person if a customer wants to meet us, our teams in the UK manage all these companies and their requirements all over the world – we’ve done about 700 Autodesk customers in a virtual environment so far. It’s quite a specialist job and there are challenges, but we focus on it day in and day out – that’s our specialisation as a company. This is what we sell; we guide a customer and liaise with the customer on what’s best for them, and then go and deploy it.”

Asked about the profile of companies they’re keen to target and which sectors show the most promise, Jull remarked: “AEC firms are obviously key but we’re also looking into the manufacturing and oil and gas sectors. One of Omnix’s partners is focused on the oil and gas market and they’ve just signed up with us.”

Bagga concluded: “We’re looking to focus on the UAE and Saudi Arabia as our key markets, followed by Kuwait, Qatar, Oman and Bahrain.

Win-win partnership

The partnership with IMSCAD and Omnix will see both companies share their experiences and knowledge of the region.

Jull added: “From our point of view, we’ve built our business in the US and Europe, and we do everything remotely – we remote consult, remote deploy and remote support. So, while we won’t be

“There is no specific order of markets we want to focus on but we’ll go wherever we see opportunities to position and pitch these solutions. Saudi Arabia is definitely on our cards to visit and make a strong pitch for because of the amount of development happening in the country at the moment - technology such as this will help firms achieve their goals.” This article originally appeared on MEConstructionNews.com

9 MEConstructionNews.com | January 2023 THE BRIEFING

Construction to see Growth in 2023

MIDDLE EAST

The construction industry has always been a cornerstone of the GCC region’s economy and will continue to be a main pillar for years to come. The GCC is expected to see construction activity rebound in 2023 with an expected growth of 3.5% to 4%, which is an impressive number.

and proactive to ensure that this opportunity reaches its full potential.

As the construction industry continues to evolve, it will face numerous challenges over the coming year. These may include changes in safety regulations, rising material costs and an increased demand for accelerated projects that require highly skilled personnel.

THE GLOBAL SUPPLY CHAIN AND LABOUR SHORTAGES

Imam,

MENA and APAC at PlanRadar, exclusively shares his insights on the GCC construction sector for 2023 with Big Project ME

The region is poised for significant growth with investments in transportation, renewable energy, residential real estate, and tourism.

The sector has a large pipeline of projects spanning across the region including urban development in Dubai and Abu Dhabi, Etihad Railways in the UAE and Saudi Arabia's new megacity NEOM.

The construction sector in the GCC countries is positioned for growth but it's not without challenges. Industry players must remain vigilant

Supply chains are set to be one of the greatest challenges for contractors in 2023. As more countries struggle with supply and labour shortages, projects become more difficult to complete on time and on budget.

To make matters worse, shifting demand from customers keeps supply chains in a constant state of flux. With the increase in global competition, companies must be agile and adaptive

January 2023 | MEConstructionNews.com 10
Ibrahim
THE BRIEFING

to meet their supply needs if they want to remain competitive.

Despite these challenges, there are many opportunities for contractors to adjust their supply chains for success.

By building resilient supply networks and using technology to optimise workflows, construction companies can weather the supply chain storm and stay ahead of the competition.

FURTHER COVID‑19 OUTBREAKS

With further COVID-19 outbreaks and a global economy that continues to suffer, the ability of developers and contractors to work productively and without disruption will be highly contested.

Although the peak of the pandemic seems to be over in most parts of the world, recent years have shown that it is difficult to make predictions about future developments. Further regional outbreaks of the virus could continue to lead to difficult workforce planning and delays in the construction phase.

THE RISING COST OF BUILDING MATERIALS

The rising cost of building materials is one of the most prominent challenges that contractors, owners and developers must be mindful of. Construction projects have been hit hard by a scarcity of materials, leading to prolonged completion times and increased costs for those involved and has significantly influenced housing prices.

The construction industry needs to embrace innovative ways to mitigate the effects of increasing costs like targeting sustainable practices that not only help to reduce building material costs but also energy consumption over time.

KEY TRENDS IN THE CONSTRUCTION SECTOR IN 2023

The construction sector in the GCC region is expected to become increasingly advanced in 2023.

In addition to advancements in technology and digitalisation, there will also be a strong focus on green building practices and sustainability.

DIGITISATION

The construction industry in the GCC region is set to drastically benefit from

digitalisation by 2023. Construction digitisation refers to a range of technology-enabled processes such as remote monitoring, predictive analytics, cloud computing and others which are meant to improve the efficiency and cost management of construction projects.

These technologies help to make construction processes more precise, complete projects faster, enable more streamlined communication among stakeholders, eliminate paperwork and reduce cost overruns on projects.

To make the most out of such remarkable potential offered by digitisation in this sector, we need to see an increase in collaboration between technologydriven companies and traditional construction firms – an approach that could have a transformative effect on the entire GCC’s construction industry.

ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING

Artificial intelligence and machine learning are predicted to play a bigger role in the construction sector in the GCC region by 2023. With the help of AI, large amounts of project data can be processed faster and in an automated way. AIs can identify recurring patterns that are subsequently used for datadriven predictions that help project managers make informed decisions and

most out of the potential offered by digitisation, there needs to be an increase in collaboration.

thus improve efficiency in their projects.

Through the automated evaluation of images taken on construction sites, artificial intelligence can also be used to identify safety deficiencies or to assist in the monitoring of machinery and equipment. This not only reduces the risk of maintenance-related outages or construction stops, but also increases the safety of employees and helps to comply with legal requirements.

AI implementation in the regional construction sector is set to become even more widespread over the next few years in both private and public organisations. For many companies, however, the selection of the right tools and the implementation itself remains the biggest challenge. If companies manage to implement this technology into their processes at an early stage, they will continue to benefit from significant competitive advantages in the coming years.

STRONG FOCUS ON SUSTAINABLE CONSTRUCTION

With GCC countries actively pushing for green building and looking to invest in new sustainable construction projects, a great opportunity has arisen for businesses across the region to capitalise on this trend.

Sustainable construction adoption can potentially bring down costs while maintaining higher standards of quality. Adopting sustainable solutions such as improved insulation or eco-friendly materials provide an opportunity for more reliable, comfortable, and low-cost living spaces.

Sustainable construction will be utilizing innovative methods to meet environmental regulations while also providing high quality investment opportunities. Sustainable construction is clearly on its way to becoming a prominent trend throughout the GCC during 2023.

Despite present market challenges, the construction industry in GCC is forecasted to experience growth in 2023. To capitalize on these potential opportunities for expansion, it's essential that businesses become aware of key trends and obstacles facing the sector. A strategic approach can help maximise long-term prospects for success.

11
MEConstructionNews.com | January 2023 THE BRIEFING
2023
AI and machine learned are predicted to play a bigger role in the GCC construction sector in 2023
Key focus Digitalisation and sustainability will be in focus for the GCC construction sector in 2023, Ibrahim Imam said. Increase collaboration In order to make the

AMEA Power awarded $120m solar PV project in South Africa

AMEA Power has been awarded a 120MW solar photovoltaic (PV) project in South Africa as part of the Sixth Bid Submission Phase of the Renewable Energy Independent Power Producer Procurement (REIPPP) Program.

The Doornhoek PV Project will sell electricity to the state utility, Eskom, under a 20-year Power Purchase Agreement. AMEA Power is the majority shareholder in the US$120 million project and has partnered with a consortium wholly owned by African women, formed by Ziyanda Energy and Dzimuzwo Consulting.

02 SAUDI ARABIA

Hassana Investment Company invests $2.4bn into DP World assets

Saudi Arabia’s Hassana Investment Company, an investment manager for the General Organisation for Social Insurance (GOSI) has invested approximately $2.4 billion in three of DP World’s flagship UAE assets. The investment will be carried out via a new joint venture with DP World, through which it will hold an economic interest with a stake of approximately 10.2% in the three assets. These investments imply a total enterprise value of approximately $23 billion for the key assets, which are: Jebel Ali Port, Free Zone and the National Industries Park.

03 SAUDI ARABIA

ENGIE participates in largest-ever auction of carbon credits

ENGIE has participated in the largestever auction of carbon credits held during the Future Investment Initiative (FII), which was organised by the Regional Voluntary Carbon Market Company.

ENGIE said that its ENGIE GEMS entity traded a total of 483,100 carbon credits to the Regional Voluntary Carbon Market Company for the auction.

This was the largest single contribution to the 1.4 million carbon credits that were sold in the auction – which was the largestever auction of its kind. 15 Saudi and regional entities took part in the auction.

SEC appoints WSP to support environmental ambitions

Saudi Electricity Company (SEC) has appointed WSP to support it in achieving compliance against local and international environmental regulations.

The consultancy will support the SEC’s environment and sustainability ambitions across two phases, and help it become an industry pioneer.

The utility giant has commissioned an environmental compliance programme covering all of its facilities in the Kingdom, driven by Vision 2030, which aims to protect and enhance the Kingdom’s environment.

Waterfalls project

Construction work on the US$12.5 million Hatta Sustainable Waterfalls project has begun, Dubai Electricity and Water Authority has said.

Saeed Mohammed Al Tayer, MD & CEO of DEWA, launched the project, which will be part of the entity’s social and investment responsibility to make Hatta a distinctive tourism destination.

The Hatta Sustainable Waterfalls project is inspired by the hexagonal beehive design since Hatta is famous as a global hub for high-quality honey.

DAMAC Properties launches Ibiza residential cluster at Lagoons development

DAMAC Properties has announced the launch of the ‘Ibiza’ residential cluster within its DAMAC Lagoons master development in Dubai.

The latest addition to the Mediterranean-inspired community comes after the successful launch of Portofino, Venice, Malta, Nice, Santorini, Costa Brava, Marbella, and Monte Carlo.

The Ibiza cluster is based on the Spanish island known for its nightlife and beaches. It is built across a 45 million sqft area.

12 January 2023 | MEConstructionNews.com
04 SAUDI ARABIA 06 UNITED ARAB EMIRATES
01 SOUTH AFRICA
THE BIG PICTURE
05 UNITED ARAB EMIRATES DEWA begins construction of $12.5m Hatta Sustainable

GAJ appointed as lead architects for Serenia Living on Palm Jumeirah

Godwin Austen Johnson (GAJ) has said that it has been appointed by Palma Development as the lead architects for the new Serenia Living residential complex located on Dubai’s Palm Jumeirah.

The project will offer an array of 225 residences featuring a mix of twothree-, and four-bedroom units as well as half floor and full floor penthouses, across four buildings. Two of the towers will be dedicated to a collection of 22 penthouses and each building will be feature a one-off duplex Sky Mansion.

08 KAZAKHSTAN

AD Ports Group signs

JV deal with KMTF

AD Ports Group has signed a shareholder agreement with KMTF (Kazmortransflot), a fully owned offshore logistics and services subsidiary of the Kazakh National Oil Company (KazMunayGas), to launch an exclusive joint venture, 51% owned by AD Ports Group and 49% owned by KMTF, for offshore and shipping services for energy companies in the Caspian Sea.

The joint venture will look at investments opportunistically will offer a broad range of services.

The enterprise will tender for a number of identified projects with estimated maritime contract values of more than US$780 million.

09 JAPAN

EGA to

supply Kobe Steel with solar aluminium

Emirates Global Aluminium has agreed to supply CelestiAL solar aluminium to Kobe Steel to make automotive body sheet for Nissan.

The agreement with Kobe Steel will see the supply of EGA’s CelestiAL solar aluminium to one of the largest rolling mills in Japan. Automotive body sheet is used by the giant Japanese automaker to form vehicle body panels such as doors and bonnets.

EGA has supplied thousands of tonnes of aluminium to Kobe Steel every year, for more than 25 years.

13 MEConstructionNews.com | January 2023
THE BIG PICTURE 04 03 01 02 06 05 07 08 09
07 UNITED ARAB EMIRATES

Industry outlook

Off-plan deals fuels remarkable year for Dubai real estate

Zeitgeist 2022 Report from Property Finder finds that the Dubai real estate market experienced a recordbreaking year in 2022, with value surpassing US$65.3 billion

According to the recent Zeitgeist 2022 Report from Property Finder, the real estate market in Dubai experienced a record-breaking year in 2022 where registered sales reached 88,028 transactions as of November 2022,

up from 60,258 transactions in 2021. This represents a significant increase of 46% and surpasses the market peak in 2013 by 38%.

In terms of value, Dubai’s real estate market has surpassed USD$65.3 billion, recording a 61% gain compared to 2021. This growth has been fuelled by the remarkable success of off-plan deals, which climbed by 86% compared to 2021.

Off-plan transactions value made up 44% of all transactions in 2022, up from 40% in 2021 as measured by volume, in the market, which saw a shift between these two performance categories. In contrast to 2021, when transactions were valued at about US$12.14 billion, the value of transactions climbed to 35% of all transactions by reaching a total of US$22.5 billion. The first sales transactions for apartments saw the largest numbers (in terms of value). In contrast, the overall value of the transactions for villas/townhouses beat the previous mark established in 2021 to be the highest ever recorded.

RECORD-BREAKING PERFORMANCE

“Due to the volatile market conditions, 2022 saw shifts in consumer behaviour. The market had a record-breaking performance due to rising demand, recent events and initiatives like the FIFA World Cup, the golden visa, and larger attempts to shift to a digitally driven economy. Hence, garnering more interest in the off-plan market as evident in our search trends on our portal as well,” said Scott Bond, country manager at Property Finder.

The most frequently searched apartment neighbourhoods in 2022 were in the city’s core, which continues to include the Palm Jumeirah, Downtown Dubai, Jumeirah Village Circle, Jumeirah Beach Residences, and Jumeirah Lakes Towers.

Meanwhile, Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Arabian Ranches 2, DAMAC Hills (Akoya by DAMAC), Akoya, Mohamed Bin Rashid, and The Springs are the most soughtafter villa and townhouse areas.

14 January 2023 | MEConstructionNews.com
MARKET REPORT
UNITED ARAB EMIRATES
15 MEConstructionNews.com | January 2023 MARKET REPORT Source: Property Finder VOLUME OF TRANSACTIONS The market had a record-breaking performance due to rising demand, the golden visa, and larger attempts to shift to a digitally driven economy” TOTAL VOLUME OF SALES TRANSACTIONS, 2020-2022 100,000 80,000 60,000 40,000 20,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 15% Villa/ Townhouses 2022 FIRST SALES REIGNED APARTMENTS SEARCHED FOR VILLA/TOWNHOUSES SEARCHED FOR 85% Apartments 33% Second Sales 67% First Sales 15% Three Bedrooms 34% One Bedroom 31% Two Bedrooms 20% Others 18% Four + Bedrooms 37% Three Bedrooms 30% Four Bedrooms 15% Others MOST SEARCHED APARTMENT LOCALITIES MOST SEARCHED VILLA/TOWNHOUSE LOCALITIES Palm Jumeirah Dubai Marina Jumeirah Beach Residence Jumeirah Lakes Towers Jumeirah Village Circle Business Bay Downtown Dubai Palm Jumeirah Dubai Hills Estate The Springs Arabian Ranches Arabian Ranches 2 Mohamed Bin Rashid DAMAC Hills

Saudi Arabia

Strong Advances in the Kingdom

policy – based largely on the desire to encourage increases in oil output – this has provided the country with more political cache in the G7 and G20 (of which it is a member of the latter).

With oil prices trending above US$100 for a major portion of the year. Saudi Arabia is forecast to have run a budget surplus of c.US$22 billion. Thus, the Kingdom is in a strong fiscal position to not only aid its citizens by muting the inflationary pressures that are currently creating a cost-of-living crisis in large parts of the world, by adopting greater subsidies and price controls, but it is also able to deliver greater investment for 2023 and further ahead budgets.

above the budgeted for price per barrel, this is unlikely to subside in the near term, driving further growth in GDP.

We forecast the non-oil economy to have grown by c.3.5% in 2022, largely due to PIF programmes and government stimulus.

MANAGING INFLATION

Non-oil economic growth

Saudi Arabia’s non-oil economic growth was 3.5% in 2022 due to PIF programmes and government stimulus.

With 2022 having been turbulent globally, the region has been one of the few net beneficiaries due to the spike in energy prices, and thus significantly increased government revenues. Combined with a drive from developed countries to greater influence Saudi Arabian

The surplus finances are also likely to see further additions to PIF’s capital bank, along with further boosts to the fund via the increased revenues from dividends that ARAMCO will be expected to vest with shareholders as its 2022 results are announced.

With the oil contribution to GDP at over 40% of GDP, we expect GDP growth in 2022 of more than 12%. This is supported by the 11% growth noted in the first, second and third quarters of the year. With oil still trending

Global current inflation is trending towards our forecast of 10% for 2022, while in certain G7 countries such as the UK, France, and Germany, it is likely to be higher. The Saudi government has kept a suppression on this through a mix of price controls (e.g.: power and water) and subsidies (such as food), with a food and material security programme fully underway. With the budget surplus, we would expect to see inflation to continue to be managed even in the face of more rate hikes by the Fed, Bank of England, ECB and potentially Bank of Japan, due to the expected budget surpluses next year and in 2024.

For KSA, we expect inflation to have peaked in 2022 at 4.5% which has been our position for the majority of 2022.

With the global effect on input prices from the Russian invasion of Ukraine

January 2023 | MEConstructionNews.com 16
David Clifton, regional director at Faithful+Gould, a member of the SNC-Lavalin Group, shares insights into the Kingdom’s future as it gears up for a crucial 2023
ANALYSIS
SAUDI ARABIA
4.5%
Peak of inflation in KSA in 2022, compared to global current inflation trending towards 10% for 2022

largely mitigated to almost pre-invasion levels, we have seen industry inflation start to ease its steep upward trajectory, although it is still rising, which points to market sentiment over input prices.

By way of demonstration, landed rebar (in country) has declined 15.54% since its April peak and decreased by 7.85% from July to end of October. The initial shock to the market from the Russian invasion, and the post pandemic demand recovery, has started to be mitigated by a rebalancing of the supply and demand. It should be noted that the price point is still over 25% ahead of pre-pandemic prices in January 2020. This is largely being driven by energy costs in recent months.

With the industry continuing to expect a boom, what we are seeing more of is ‘tender fatigue’.

The supply chain cannot cope with the quantum of enquiries and is either unwilling or unable to scale their pre-contract teams to deal with the continued influx.

There are serious concerns in the market about not just the quantity of tenders, but the re-tendering, lack of decision making and a yet to appear move to fairer contracting mechanisms. This is driving selective behaviours and a lot of ‘cover’ pricing. This is where the supply chain estimates a high number at the bid, so that if they win it’s highly profitable. However, the expectation is that the bid will lose, but the bidder will still retain favour with the client body, ‘in case’ that entity becomes favoured with work or money or they have more interesting pipeline projects.

KEY CHALLENGE

We have seen significant delays in the closing out of contract awards in H2 2022, with major delays in decision making and appropriate sign off to progress or retendering. This has dented some of the market enthusiasm that has been so high over the past years due to the cost of tendering unable to

Easing trajectory Industry inflation has started to ease its steep upward trajectory, although it is still rising, pointing to market sentiment over input prices, Clifton says.

12%

be matched by work in the backlog.

Our contract awards assessment in 2022 shows a 12% growth to c.US$41.2 billion, although moving forward, we expect to see a CAGR of awards of ~5%, with forecasts for 2023 and 2024 as growth areas to keep the market trending upwards.

However, this is not in line with market expectations and whilst 2023-2024 will be above average pre-pandemic levels, the contract awards are unlikely to touch on peak years such as 2012, 2015 and 2019.

With the market now in growth mode, 2023’s key challenge for major project owners is to engage ever wider with suppliers and potential employees to build not just the capacity, but the capability and knowledge to deliver. With a global slowdown and advanced economy recession (either here or coming), now should be the ideal time to push awards harder. Especially when coupled with the significant increases in oil revenues for the Kingdom, 2023 looks to be a positive year for the industry.

17 MEConstructionNews.com | January 2023 ANALYSIS
SAUDI ARABIA INFLATION RATE, 2011-2024 BASE CASE UPPER LIMIT LOWER LIMIT TRENDLINE 6.0% 4.0% 2.0% 0.0% -2.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022e 2023e SAUDI ARABIA MAIN CONTRACT AWARDS ($ BILLIONS) AND PERCENTAGE CHANGE, 2015-2024 $ BILLIONS BASE CASE UPPER LIMIT LOWER LIMIT TRENDLINE $80 $60 $40 $20 $0 2015 2016 100% 50% 0% -50% -100% 2017 2018 2019 2020 2021 2022e 2024e 2023e 2024e
Growth in contract awards in Saudi Arabia during 2022, to a total value of $41.2bn
October 2021 | MEConstructionNews.com KEZ TAYLOR, CEO
ALEC
SPEAKS EXCLUSIVELY TO BIG PROJECT ME ABOUT THE DUBAI-BASED CONSTRUCTION GIANT’S RECENT ACQUISITION OF TARGET ENGINEERING CONSTRUCTION COMPANY 18 IN PROFILE ALEC January 2023 | MEConstructionNews.com
Right Fit
OF
,
The
19 MEConstructionNews.com | January 2023

owards the end of 2022, the Dubaibased contractor, ALEC Engineering & Contracting – part of the Investment Corporation of Dubai – announced that it had signed a share purchase agreement to acquire TARGET Engineering Construction Company, the oil and gas EPC contractor that was formerly part of Arabtec.

The agreement will see ALEC acquire 100% of TARGET, enhancing its resources significantly through the latter’s 11,000-strong workforce, marine vessels, and fabrication facilities. In addition, the deal includes TARGET’s controlling stake in IDROTEC srl, the Italian specialised marine design engineering firm.

“This acquisition further advances ALEC’s position in the regional construction industry while simultaneously enabling it to enter and fast-track its strategy of becoming a key player in the Middle East Oil & Gas, and Energy and Renewables sectors by drawing

from the extensive expertise, and resources that TARGET Engineering has developed over its celebrated 40-year history,” says Khalifa Al Daboos, Deputy CEO at ICD.

“For the Investment Corporation of Dubai, this move enables us to align strongly with the UAE government’s ongoing investment into developing world-class critical infrastructure facilities that support its ambition of being an advanced, sustainable economy.”

With the acquisition set to have a significant impact on the future and performance of both entities, Big Project ME caught up with Kez Taylor, CEO of ALEC, for insights into the thinking

A great opportunity Acquiring TARGET is a great opportunity to advance ALEC’s position in the regional construction industry, while entering new sectors, says Kez Taylor.

behind the deal, and the significance of it in terms of both companies’ strategy.

“ALEC has an established track record of continuously enhancing the skills and capabilities within the organisation and leveraging this expertise to enter into – and become a market leader – in new market segments,” he states. “Bringing TARGET Engineering within our fold is a move that plays to both these objectives as their specialist skillsets in Oil & Gas, Energy — including renewables, marine, and industrial construction — perfectly augment ALEC’s own capabilities. This will enable us to present an even stronger joint value proposition to customers.”

“We saw this as a great opportunity. TARGET have a very good reputation, a very good name in the oil and gas, and marine engineering sectors,” he tells Big Project ME in an exclusive interview.

“We also saw great potential in the clean energy sector, and in the transition from carbon to clean energy. They’re a very good fit for ALEC in terms of diversification.”

Major

acquisition

The acquisition is the largest that ALEC has ever made, and TARGET’s performance will contribute significantly to the group’s overall performance.

At around US$100 million, the acquisition is the biggest ALEC has made, Taylor states, adding that TARGET’s performance will make up around 30% of future turnover targets. Together, the companies will have a joint turnover of nearly US$2 billion, although TARGET will continue to operate as an independent entity.

“TARGET will be run by the management that are within that business. We’ll look at synergies between the two companies, obviously to improve things both ways, but it will be a separate business reporting to ALEC,” he adds, while also explaining that the acquisition was financed partly out of debt, with the remainder coming from the capital ALEC has put in.

“It’s a good deal for us. Over the next five years, we see both ALEC and TARGET doubling in size over the next five years. Both businesses are going through a significant growth phase, and there’s a lot of work around, for us, at the moment between Saudi Arabia and the UAE, in particular. There’s going to be significant investment in the oil and gas, marine, and future energy businesses,” he says.

With the regional emphasis on diversifying the energy mix, Taylor points

20 January 2023 | MEConstructionNews.com
IN PROFILE

out that both Saudi Arabia and the UAE have committed to Net Zero Carbon by 2050. In order for that to happen, there needs to be significant investment over the next 30 years, which will lead to significant opportunities, he adds.

However, for the immediate future, the plan is for TARGET to continue operating independently and as normal, particularly given its strong pipeline of ongoing and upcoming projects.

The company’s customer base is comprised of leading Oil & Gas companies, major EPC (Engineering, procurement, and construction) contractors, government entities and property developers. Amongst the noteworthy projects that it has successfully completed include work on ENEC’s Barakah Nuclear Power Plant, ADNOC Gas Processing’s Ruwais LNG

Noteworthy projects

Amongst TARGET’s most noteworthy projects is ENEC’s Barakah Nuclear Power Plant.

Terminal, Saudi Aramco’s Abqiq plant, and ENOC’s Jebal Ali Refinery expansion.

Its portfolio also includes current active projects such as Borouge 4 and Delma B in joint venture for ADNOC, and IGDC for ADGAS.

“We’re going to allow them to operate, but we’ll look at wherever we can innovate and improve, and we’ll do that – on both sides of the business.

“If you look at it, while they are two different businesses, there are a lot of common elements. So, what I think we’ll do is look at who’s best in class, whatever the sector, and then look at synergising those common elements moving into the future.”

Taylor states that with the acquisition now completed, ALEC’s focus for the immediate future will be on the growth phase for both businesses. With the

contractor bringing a strong financial position, world-class project execution capabilities, and leadership to the table, TARGET will be able to develop its growth plans for Middle East and deliver best-inbreed EPC and specialist marine services to a wide range of entities, he adds.

“What we’re looking at doing is consolidating over the next period. We are not necessarily looking at going on an acquisition drive. We’ve made this move, we’ve invested a lot in it, and on other things such as LINQ, and what we’ve really got to do over the next period is make it work.”

However, while Taylor is quick to point out that ALEC has enjoyed a hugely productive 2022, with the various entities in the construction group achieving significant milestones over the course of the year.

21 MEConstructionNews.com | January 2023 IN PROFILE
30% TARGET will make up 30% of future turnover in the group

Part of this includes an ongoing comprehensive implementation of a fouryear digital construction strategy, which has seen the company commit itself to upskilling staff and improving efficiencies and sustainability through technology.

Furthermore, the company has also launched a strategic projects and developments division that will specialise in alternative engagement models – such as design and build, construction management, and turnkey developments – all with an eye towards steering the company towards a more sustainable future. For example, subsidiary ALEC Energy has signed an

MoU

to leverage the expertise of both companies in enabling private and public sector clients to meet and exceed goals outlined in the UAE Energy Strategy 2050.

This commitment to sustainability and digital transformation is a key part of the construction giant’s determination to be a leader in its industry, Taylor says, pointing out that shifting market dynamics have left ALEC as one of the few major contractors with the capability and knowledge to take on large-scale projects.

Growth phase

Both companies are going through growth phases, and there will be significant investment in the oil and gas, marine, and future energy businesses.

you look at the kind of companies that have that ability, there’s very few today, compared to what was there 20 years ago. So, from an ALEC perspective, we’re going to focus on large complex projects, and trying to successfully execute them, and TARGET will continue to do the same thing with their projects with ADNOC and ARAMCO.”

With Saudi Arabia already a key market for the group, Taylor adds that the last year has seen ALEC consolidate its position within the Kingdom. With the TARGET acquisition now completed, that position will only be solidified, given its historical links within the country.

“It’s going very well – we’re very well positioned in Saudi Arabia, and we’re going to be picking up our turnover significantly (there),” he adds.

“We recently completed the visitor centre in Diriyah Gate, it’s the first project to be completed in Diriyah Gate, and we’re working on the water park in Qiddiya.

“In terms of being able to ramp up our workforce, that’s something we’ve been doing over many years (on different projects in the region), so we can provide what’s needed (as per the project).

Saudi in focus

“We pride ourselves on

ability to do complex projects successfully. If

ALEC aims to pick up its turnover in KSA significantly, having won some major projects there, including the Qiddiya water park (pictured).

However, in terms of who you work with, you’ve got to be very selective, and you’ve got to make sure you’re dealing with competent, capable, and financially strong businesses, and we’re trying to do that,” he asserts in conclusion.

22 January 2023 | MEConstructionNews.com IN PROFILE
with Stantec, the global leader in sustainable design and engineering,
our
We saw a great opportunity. TARGET have a very good reputation, a very good name in the oil and gas, and marine engineering sectors. We also saw great potential in the clean energy sector, and in the transition from carbon to clean energy”
MEConstructionNews.com | December 2022
MEConstructionNews.com | January 2023 25 Green is Gold BIG PROJECT ME SPEAKS TO MADHAV DHAR, CO-FOUNDER AND COO OF Z A ZEN PROPERTIES, ABOUT THE SUSTAINABILITY-FOCUSED DEVELOPER’S ZAZEN GARDENS PROJECT IN AL FURJAN, DUBAI, WHICH WILL BE A LEED GOLD RATED RESIDENTIAL PROJECT THAT AIMS TO HIGHLIGHT THE VIABILITY OF ENVIRONMENTALLY CONSCIOUS LIVING PROJECT PROFILE ZāZen Gardens PROJECT NAME: ZāZen Gardens PROJECT DEVELOPER: ZāZen Properties MAIN CONTRACTOR: Aroma International Building Contracting TOTAL BUILT-UP AREA: 310,000sqft TOTAL LANDSCAPED AREA: 35,000sqft SCHEDULED COMPLETION DATE: April 2024

ZāZEN Gardens is ZāZEN Properties’ newest project. It will be the only certified LEED Gold residential project in Al Furjan. With Well-Being integrated at its core, and through a variety of sustainable practices, the development is aligned with key UAE initiatives such as the Dubai 2040 Urban Masterplan, UAE Net Zero 2050. Furthermore, the project will support the upcoming COP28, which HH Sheikh Mohammed bin Rashid Al Maktoum has called the most important event to be hosted by the nation in 2023.

Upon completion, the project will reduce around 470 metric tons of carbon emissions annually– equivalent to the planting of 12,147 trees. ZāZEN Gardens is a six-story high midrise development, consisting of 159 apartments that span from 824 to 1,612 square feet. It also has two retail outlets on the ground floor that will cater to the Al Furjan community.

Building at a LEED standard within a single plot is not typical; such efforts are often reserved for master developments as larger areas of space make for easier integration, but we are leading the way to show private developers that it is possible, and it is the future.

The entire development will cover approximately 310,000 square feet of built-up area and will boast 35,000 square feet of landscaping, multiple recycling stations, EV charging stations and solar panels on the rooftop to help generate on-site solar energy, reducing common area service charges for owners.

Also, integrative Well-Being Design is a unique concept that we are bringing into the residential realm in Al Furjan. It is the overarching practice of unlocking the natural frequencies

around us that transform physical environments, enhancing the optimal health and well-being of our residents.

This includes Land Energy Optimisation, Classical Feng Shui, EMF Mitigation and Building Biology. These practices are essential to creating healthy buildings that prioritise human health, and preserve the Qi, or life force. With the increasing incidence of autoimmune diseases, allergies, and airborne viruses and bacteria, there is a growing need for healthy and restorative environments.

At ZāZEN Gardens we have created a harmonious environment where energy flow creates spaces that truly nourish the mind and body.

What is the current rate of project on the project – how much is completed and what needs to be done? The construction is at about 7.5%, having just begun broken ground in mid-October 2022. The ground floor and first floor concrete slab casting is complete with the rest of the major structure works on schedule for an April 2024 completion.

The construction schedule is for 18 months, with an April 2024 handover. Currently progress is on track with subcontractors appointed and major structure work underway.

ZāZEN Properties prides itself on timely delivery. Our first project, ZāZEN One in JVT, was handed over as promised in January 2022, despite

159

Total number of residential units

the COVID lockdown in 2021. We are confident we will complete all relevant work, including approvals, to start welcoming owners to take handover after 30th April 2024.

Who is the contractor on the project, and why were they chosen as a partner on this project?

The main contractor on the project is Aroma International Building Contracting (Aroma). They are one of the leading main contractors in the UAE., with branches in Dubai and Abu Dhabi, and a commercial license to build `unlimited’ floors. Their core strength is their highly experienced staff, flexibility and willingness to go the extra mile to help us achieve our targets.

They recently handed over the Dubai CommerCity project, which is the first free zone dedicated to e-commerce in the MENA region, for the Dubai Airport Free Zone Authority (DAFZA) with a contract value of US$196 million. They also completed our first project, ZāZEN One in JVT, on time, within budget and with the highest level of quality and safety. There were zero accidents over the 24 months construction period. We are happy to be working with them again and continuing our excellent partnership with Aroma and all our other subcontractors and stakeholders.

Have there been any major challenges along the way? How have

26 January 2023 | MEConstructionNews.com
an you provide some background on the project and share some details on its scale and scope of development?
PROJECT PROFILE
Harmonious Environment ZaZEN Garden has been built to reflect the growing need for healthy and restorative environments, says Madhav Dhar.

you worked to overcome them?

As with all under construction projects, there have been challenges to begin with:

• Space constraints: Since the building footprint covers the entire plot, till the boundary, construction activity and material storage have to be pre-planned in phases. Our scheduling and coordination for this has been top notch and must continue to be, to complete the project as planned. For material delivery we

Benchmark for building

The LEED certification system has been the benchmark for the entire development.

used the Just-In-Time philosophy, to avoid storage issues at site.

• Lack of water discharge point: There was no water discharge point available near the project to connect the dewatering system. For this we used water tankers to shift the groundwater, which required additional planning and approvals.

at site. This included all finishing works, appliances, lighting, furniture etc, so that customers can see the actual finished product they will receive.

This work was completed in just over one month, in time for the off-plan sales launch in December and required preplanning and confirmation of all materials and drawings. additional manpower, coordination with suppliers, testing and commissioning and authority approvals.

Why have you decided to go for the LEED-Gold rating on this project? Has that ambition caused any challenges during the construction process?

As one of the leading private sustainable developers in Dubai, our goal is always to help people live better. We believe that sustainable development is one of the ways in achieving this and the LEED certification system has been the benchmark for designing, constructing, operating, and maintaining environmentally responsible buildings for decades.

Work underway

Construction work is about 7.5% underway, and the project aims to be completed by April 2024.

• Sales Centre and Show Apartment: The contracting team and sub-contractors were tasked with completing a full sales centre and show apartment

As the most widely used green building rating system in the world for rating the health, efficiency, and cost-saving of developments, we are confident our customer base would appreciate

27 MEConstructionNews.com | January 2023 PROJECT PROFILE
ZāZEN
Gardens is truly a first-of-its-kind development in the Al Furjan area, if not in Dubai. With the integration of Sustainability and Well-Being, we are aiming to deliver a space that goes beyond just four walls”

a globally recognised solution that adds value to how they live.

However, pursuing the LEED Gold certification comes with its challenges. It requires us to rethink not only design, but material selection, equipment efficiency and selection, construction practices and many other processes. Fortunately, our goal from conception has been to have the first LEED Gold residential development in the area, so we went in understanding the challenges

and had solutions in place. Being one of the first LEED Gold certified residential developments in Dubai, we will face more hurdles as we reach completion and learn along the way.

How did chasing the LEED Gold rating alter your procurement strategies? Adhering to LEED standards has made our team go back to the drawing board for all major components, with our main and sub-contractors. Our BOQ

First in Al Furjan

The development will be the first LEED Gold residential development in the Al Furjan area.

from the start had to incorporate LEED Gold standards into all items, which had a cost implication on the overall project. This involved a lot of coordination with our partners and some studying to understand the specifications and its implications.

Back to the drawing board Adhering to LEED standards forced the project team to rethink their plans and designs for all major components.

Fortunately, with our first project, ZāZEN One, in JVT, we had partially encountered these requirements. Even though we had not pursued a LEED rating there, the project was built with sustainability at its core.

What sort of sustainabilityfocused design and engineering solutions have you implemented in the project?

With regards to Sustainability in Architectural Design:

• Vast areas of green landscape have been introduced to decrease the number of hard surfaces exposed to the sun, which limits the urban island heat effect, reducing the overall surrounding temperature and improving air quality.

• The orientation and shape of the building was specifically designed to allow part of the building to shade the other parts at all times, lowering sun exposure.

• Light colours of the elevation and glass with low U value, will be used

January 2023 | MEConstructionNews.com 28 PROJECT PROFILE
We are hopeful that developments like ours, will spearhead a new wave of sustainable real estate projects that contribute to reducing the 40% of annual global CO2 emissions which construction is responsible for”

to slow and limit heat absorption.

• Efficient equipment and fixtures have been selected to reduce energy and water waste, resulting in a 24% reduction in annual electrical energy costs and over 33% reduction in annual water usage.

• Solar panels have been added on the roof to generate on-site solar energy. This will be passed onto owners in the form of lower service charges for the common area.

• Specific Recycling bins/facilities are provided to help separate waste material for easy disposal.

• Electric car charging stations will be provided within the development. Overall, the project concept promotes a sustainable community lifestyle, with Well-Being design being added in to really help create the best environment for you to

Pushing boundaries

The development aims to promote a sustainable community lifestyle and spearhead a new wave of sustainable real estate developments, says Dhar.

grow in. We are always pushing the boundaries of how to create healthy, wholesome and high-quality residences that promote community living.

Finally, what sort of impact do you expect this project to have in terms of perceptions about sustainability in projects?

470 Metric tons of carbon emissions reduced annually

ZāZEN Gardens is truly a first-of-itskind development in the Al Furjan area, if not in Dubai. With the integration of Sustainability and Well-Being, we are aiming to deliver a space that goes beyond just four walls.

We have meticulously crafted each element with your health and prosperity as a priority, ensuring that you feel nurtured and energised. With our world class amenities, high quality finishes and spacious homes, you can truly live holistically.

Our projects can help highlight the benefits of investing in sustainable developments from an end-user or investors point of view.

Once customers see that the cost implication to them is minimal, and that the benefits outweigh the misconceptions, there will be a lot more demand for similar types of projects. And with Dubai being a truly global hub, with investments in real estate driving growth, the requirement to match European and International living standards will be at the forefront.

Moreover, we are hopeful that developments like ours, will spearhead a new wave of sustainable real estate projects that contribute to reducing the 40% of annual global CO2 emissions which construction is responsible for, and align with the strategic goals of the UAE and Dubai.

29 MEConstructionNews.com | January 2023
PROJECT PROFILE
30 January 2023 | MEConstructionNews.com BPME AWARDS 2022

Champions of Construction

Held at the end of 2022, there were 19 winners recognised at the 12th edition of the Big Project Middle East Awards. The latest edition of the annual event saw more than 160 guests from across the GCC and MENA region come together at the Ritz Carlton on the famous JBR Walk in Dubai, for a night of fun and festivities.

With close to 230 submissions received when nominations closed on November 15, the editorial team and the judges had a tough job on their hands to choose winners from a surfeit of quality nominees. The number of submissions rivalled those received in 2021 and was representative of the strong health of the industry, Gavin Davids, Head of Editorial and Content – Big Project ME, said.

“I was very pleased with the number of nominations received for this edition of the awards, and consequently, the strong shortlists that we put together for each category. I think the judges did a fantastic job, and certainly chose some worthy winners,” he continued.

The judging process was split in two parts – an initial process that saw the Big Project ME editorial team comb through all the nominations, vetting them to ensure that they met nomination guidelines and standards, and that they were appropriate for the focus of the awards.

The second, and most crucial, aspect of the judging process was the meeting of the Judges Panel on December 6, which consisted of a handpicked selection of experts from across the industry:

• Christine EspinosaErlanda – Senior Associate at Godwin Austen Johnson

• Kerem Cengiz – Managing Director – MENA at LWK + Partners

• Luke Somerville – Managing Director at Compass Project Consulting

• Peter Westeng – Chairman of Omnium International

• Simran Bagga – Vice President at Omnix Engineering and Foundation Technologies

• Jason Saundalkar –Head of Content at MEConstructionNews.com

• Gavin Davids – Head of Editorial and Content at Big Project ME

“This year, we had some very strong nominations from all over the region. The judges had a hard time deciding who to

choose, but I think we successfully narrowed down the shortlist and chose the appropriate winners for each category. I’m delighted that we had entries come in from all over the MENA region – and that we had some big winners come from outside the GCC,” Davids highlighted.

Kerem Cengiz, managing director – MENA at LWK + Partners, praised the wide crosssection of nominations at this year’s awards, pointing out that there were some very interesting and intriguing submission.

“There were some very strong technical submissions, and some very hotly contested segments, while others were much more obvious and easier to identify. Generally, however, it’s been a good set of nominations this year,” he asserted.

31
Returning for the 12th year, the Big Project Middle East Awards were held on December 15, 2022, at the Ritz Carlton JBR, in celebration of the best projects and construction companies in the MENA region
MEConstructionNews.com | January 2023 BPME AWARDS 2022
ORGANISED BY PRESENTED BY CATEGORY SPONSOR BRONZE SPONSOR SILVER SPONSOR GOLD SPONSOR GOLD SPONSOR GOLD SPONSOR

Big Project ME Executive of the Year

WINNER:

• Barry Lewis – Managing Director – ALEC

SHORTLISTED NOMINEES:

• Baharash Bagherian – CEO – URB

• Francis Alfred – Managing Director – Sobha Realty

• Ian Williamson – Chief Projects Delivery Officer – Red Sea Global

• Kenneth Rob Davies – Managing Director – Depa Interiors

The winner of the Big Project ME Executive of the Year for 2022 was

Big Project ME Professional of the Year

WINNER:

• Li Bo – Engineering Manager/ Divisional Deputy Engineering Manager – CSCEC –Infrastructure Division

SHORTLISTED NOMINEES:

• Deepak Hingorani – Project Director

– Aroma International Contracting

• Heba Abo El-elaa – Bridge Engineer – The Arab Contractors

Li Bo was chosen as the Big Project ME Professional of the Year because the judges were impressed by her breadth

of knowledge and expertise, as well as her leadership potential, ability to take responsibility, and her showcased decision-making capabilities. With more than 15 years of experience under her belt, she has participated in, and helped deliver a number of prestigious and critical projects, which was another factor in their decision.

“In 2022, we finished an infrastructure project which utilised smart construction and (was focused on) sustainability. The future will be focused on green construction and to build a better world,” she said.

Skills

WINNER:

Development

• Red Sea Global – The Red Sea Vocational Training Program / Elite Graduate Program

SHORTLISTED NOMINEES:

• ALEC – Tomohy Initiative

• ASHGHAL – New Corporate Strategy 2018 – 2022

• ECC – KAIZEN through LEAN Principles

• Sobha Realty – Sobha Institute for Construction Excellence

Red Sea Global’s Vocational Training

ALEC’s Barry Lewis, who was chosen because of his fundamental role in his company’s success this year. Lewis has played an active role across a number of projects in ALEC’s portfolio and has shown a proven ability to develop long-term strategic relationships and partnerships to drive business growth.

“We’re in an exciting time. Saudi Arabia has got a fantastic portfolio of projects that are exciting for us as a business, and even domestically, there’s some exciting new ventures. Our plans are of growth, and we’re looking forward to it,” he told Big Project ME.

Programme of the Year

Program and Elite Graduate Program were chosen by the judges because the judges felt they were catalysts for human capital development and diversified growth, while also creating more than 120,000 jobs for the local population.

“This award goes to the support that we receive from our top management and to the wonderful team that work to ensure our top talents receive the best training and opportunities to allows them to grow,” said Zehar Filemban, Talent Development executive director at Red Sea Global.

32 January 2023 | MEConstructionNews.com BPME AWARDS 2022

Supplier of the Year

WINNER:

• Desert Board

SHORTLISTED NOMINEES:

FILA Industria Chimica Middle East

LATICRETE Middle East

VERTECO

This year’s winner of the Supplier of the Year trophy was chosen by the judges because it is a home-grown brand with sustainability at the forefront.

Utilising waste from locally available palm trees, Desert Board creates a sustainable building product via an

Developer of the Year

WINNER:

SHORTLISTED NOMINEES:

URB

DAMAC Properties

Sobha Realty was chosen by the judges to be the Developer of the Year as it had demonstrated a stellar record over the course of 2022, with continuous growth and innovation shown to the market.

As one of the foremost backward integrated companies in the world, Sobha Realty’s inhouse

competencies and resources that have allowed it to deliver major projects on time and under budget.

The developer’s key projectSobha Heartland - recently passed the 60% completion mark and is on track for its 2025 completion.

“This award is a testimony to our company ethos. The entire company is built around quality, being transparent, and we aim to improve ourselves for the future, and do as well as we can as a responsible developer,” said Vaibhav Setia, head of Development at Sobha Realty.

innovative and efficient process that left the judges highly impressed.

“We’ve been working extremely hard on this project and it’s finally coming to fruition. We’re really looking forward to making more ground into the market in 2023.

“We have a lot of people interested about the product itself, and we’re excited about the different aspects where it can be applied in the construction and logistics industries,” said Cian Farah, ECC Group Director, responsible for ECC Fit-Out and Construction.

Sustainable Government Department of the Year

WINNER:

Etihad Rail

Etihad Rail was chosen as the Sustainable Government Department of the Year because it has been a catalyst for economic growth and sustainable social development. Not only is it helping to redefine the way logistics and transportation is perceived in the region, but it is providing residents and businesses with a modern, safe, and sustainable network that is

connecting cities and countries across the GCC in a way never seen before.

Furthermore, the government entity is playing a major role in enabling the UAE to reach its netzero emissions by 2050 target. This is by helping reduce annual transport emissions by several tonnes per year. In addition, during the construction of the network, the company is taking every possible precaution to minimise negative impacts on the natural environment around it.

33 MEConstructionNews.com | January 2023 BPME AWARDS 2022
Sobha Realty

Sustainable

WINNER:

• iBuild

Contractor

of the Year

SHORTLISTED NOMINEES:

• Orascom Construction

• Sobha Realty

iBuild was chosen as the Sustainable Contractor of the Year because of its innovative and sustainable construction methods in its nomination, highlighting its achievement of earning Silver Status with the Green Business Bureau.

Furthermore, the company showcased how it is implementing

sustainability across its operations, both on its project sites and in its offices, while still succeeding as a general contractor.

“We believe that sustainability is the future for our world, and especially the construction industry. We have implemented solar panels to have clean energy on all our construction sites, and we’re implementing a lot of methods to carry out all our projects in a sustainable environment, and decreasing carbon emissions,” explained Amir Boshra, Operations director at ASGC, the parent company of iBuild.

Fit Out Contractor of the Year

WINNER:

• ALEC FITOUT

SHORTLISTED NOMINEES:

• Depa Interiors

• Pinnacle Interiors

ALEC Fit-Out picked up the FitOut Contractor of the Year off the back of a highly successful 2022, during which the company delivered and picked up a number of highprofile and iconic projects.

Over the course of the year, the company said it aims to register more

MEP Contractor of the Year

WINNER:

• ALEMCO

SHORTLISTED NOMINEES:

• China State Construction Engineering Corporation

Middle East – MEP Division

• LASCO

• Voltas

ALEMCO was chosen by the judges as the MEP Contractor of the Year for its overall achievements and its consistent standard of high-quality MEP work, across a variety of projects.

The company delivered a number of high-profile works over the course of the year and has an order book in excess of US$270 million.

Furthermore, the subcontractor is committed to innovation and fostering a culture of continuous improvement and efficiency.

“This win is evidence of the hard work that our team puts into all our projects, and of course towards all our clients. It’s just the beginning of what we aim to achieve going into 2023, and we have a lot more to come,” said Tyron Holgate, head of Department at ALEC.

than US$270 million in revenue, more than double its turnover from 2021.

Furthermore, it has successfully expanded into Saudi Arabia, having recently delivered its first project there. Qatar, Egypt, and Ethiopia are also major target markets for the fit-out contractor.

“We are a business that is growing at the moment, and our turnover next year will grow by 20% to 25%.

“The business is doing well and we’re delivering good projects,” stated Laurent Farge, general manager of ALEC FitOut.

34 January 2023 | MEConstructionNews.com BPME AWARDS 2022
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Civil Contractor of the Year

WINNER:

• China State Construction Engineering Corporation

Middle East

SHORTLISTED NOMINEES:

• Orascom Construction

• The Arab Contractors

CSCEC ME won the Civil Contractor of the Year award because of their exemplary work over the year, having been involved in highly strategic infrastructure projects that will support regional economic development.

The company posted revenues of US$293 billion at the end of 2021, and with several major projects awarded in 2022, including the infrastructure running tunnels for NEOM, can expect 2023 to be even better.

“Last year, we completed two very challenging projects – Shindagha and Etihad Rail – but we also successfully developed in the Saudi Arabian market. Next year will be challenging, but we’re ready,” said Qianli Cheng, general manager of CSCEC Middle East – KSA, and deputy general manager of CSCEC ME – Civil and Infrastructure Division.

Contractor of the Year

WINNER:

• ALEC

SHORTLISTED NOMINEES:

• China State Construction Engineering Corporation Middle East

• Hassam Allam Construction

• McLaren Construction

• Orascom Construction

ALEC was picked by the judges to be Contractor of the Year for 2022 off the back of its ongoing successful operations in Dubai,

Abu Dhabi, and Riyadh, where the company is working on a number of high-profile and iconic projects

Furthermore, the company has embraced innovation as a core corporate value, with an innovation department reporting directly to the CEO and employees challenged to come up with creative solutions beyond the status-quo.

The company has also successfully launched a number of new business units and services in 2022, while it has also expanded into new territories, with a new office opened in Riyadh.

HSE Project of the Year

WINNER:

• KHAZNA Data Centre –McLaren JLW Joint Venture

SHORTLISTED NOMINEES:

• Opera House and Arts and Culture City – Orascom Construction

• SABIS International School AlJada – iBuild

• The Red Sea Project – Red Sea Global

The KHAZNA Data Centre by the McLaren JLW Joint Venture was the winner of the HSE Project of the Year as it highlighted a detailed breakdown

of the company’s policies and standards that were rigorously implemented. Furthermore, senior management from the joint venture carried out regular tours and site checks to ensure that HSE levels were being maintained on site.

“2022 has been a very challenging year, especially with COVID and trying to keep everyone safe on this very fast-paced project. In 2023, we’re concentrating on behavioural safety, and we’ve got visual impact training that we’ve inherited from EXPO,” said Jaime Selway, QHSE manager at McLaren Construction Group.

36 January 2023 | MEConstructionNews.com BPME AWARDS 2022

Fit-Out Project of the Year

WINNER:

• Vision Pavilion – ALEC FITOUT

SHORTLISTED NOMINEES:

• Convention and Exhibition Centre, Expo 2020 – Depa Interiors

• Heliport Terminal @ Expo 2020 Dubai – Pinnacle Interiors

• SABIS International School Aljada – iBuild

The Vision Pavilion was chosen as the Fit-Out Project of the Year because of its exquisite work and visual impact. Conceived as a gift and tribute to HH

Energy Project of the Year

WINNER:

• UAE Wind Program – Power Construction Corporation of China

SHORTLISTED NOMINEES:

• Abu Dhabi Water and Electricity Authority Shared Savings Project – Taka Solutions

• New Administrative Capital District Cooling Plant – Kortech

• Ras Ghareb Wind Farm –Orascom Construction

The judges were highly impressed with the scale and importance of the

UAE Wind Program, and by the work carried out by the Power Construction Corporation of China. It consists of a number of projects within an overall masterplan, and is also the first of its kind in the country. Built across a variety of locations, there were often no reference points to consider.

“Thanks to everyone who has participated in this project – and thanks to our developer Masdar, who awarded this project to Power China. I believe that we have the confidence to complete this project on time, with good quality, in the near future,” said a spokesperson.

“The Vision Pavilion was a brilliant design and build project by ALEC FITOUT. The project is very special, and it opens up a new sector for us, where we’re looking at immersive experiences, combining fit-out with AV, media and content. It’s quite an exciting field to be in at the moment,” said Tom Gilmartin, Business Development manager at ALEC FITOUT.

Sustainable Project of the Year

WINNER:

• Bustanica – Emirates Crop One

SHORTLISTED NOMINEES:

• 100MW Green Hydrogen Plant –Orascom Construction (part of the Green Hydrogen Consortium)

• Masdar Central Park – Masdar City

Bustanica was chosen by the judges because of its importance for the region’s food security, and also because of how it has embraced sustainability throughout its operations and construction process. Given the many

challenges posed by climate change, the project stands as testament to the solutions offered by the construction industry thanks to its best-in-class innovations and technologies.

“Vertical farming will change (how we view food security). The project is definitely going to help in terms of the supply chain, and by having fresh produce coming from the UAE, rather than having to be imported from outside. We hope to see more and more of these types of projects,” said Leila Echtai, Sourcing manager – Strategic Projects at Emirates Flight Catering.

37 MEConstructionNews.com | January 2023 BPME AWARDS 2022
Sheikh Mohammed Bin Rashid Al Maktoum, the Vision Pavilion is a key legacy project that was developed in top secret as a manifestation of the Ruler of Dubai’s willpower and determination.

Big Project ME’s Community Retail Project of the Year

WINNER:

• The Waterfront Market – Ithra Dubai

The Waterfront Market is a project that is steeped in the history and culture of Dubai’s past, as it is a revamp of the city’s iconic Deira Fish Market, which opened in the 1950s. Having been built to evoke the traditional elements of an Arabian souk, while including the modern amenities of a multi-use venue, the retail development has quickly

Big Project ME’s Iconic Project of the Year

WINNER: • One Za’abeel – Ithra Dubai

As the iconic One Za’abeel nears its completion in 2023, Big Project ME’s editorial team sought to recognise the hugely impressive work carried out by Ithra Dubai and its project partners. Coming up between Dubai World Trade Centre and Za’abeel Park, the architectural and engineering marvel consists of two towers linked by a suspended bridge. Home to offices, an ultra-luxury hotel, and several retail and F&B

outlets, the One Za’abeel project is set to be a symbol of Dubai’s ambition, innovation, and pioneering spirit.

“We’re accepting this award as Ithra Dubai, the developer of the project, on behalf of thousands of people who have contributed to it. When it’s finished in 2023, it’s really going to change the skyline of Dubai and the region. 2023 will bring the end of the construction period, but we’ll be moving into the opening phase, where we’ll be bringing in tenants. It’s a very exciting period,” said Lachlan Gyde, executive director – Asset Management, Ithra Dubai.

established itself at the heart of the vibrant Deira community.

It is set to be a transformational development and a key part of the Deira Enrichment Project, which is being developed by Ithra Dubai.

“This award is a reward of five years of hard work. It’s really been a team impact, and together we have been able to achieve these rewards,” said Mohammed Ibrahim Juma Almadani, centre manager at Dubai Waterfront Market.

Infrastructure Project of the Year

WINNER:

• Improvement of Al Shindagha Corridor Phase 2D – China State Construction Engineering Corporation Middle East

SHORTLISTED NOMINEES:

• Light Rail Transit – LRT –The Arab Contractors

• The Red Sea International Airport – Red Sea Global

CSCEC ME took home the award of Infrastructure Project of the Year for its work on the Improvement

of Al Shindagha Corridor Phase 2D – China State Construction Engineering Corporation Middle East.

The judges felt that the impact of the project made it a deserving winner as it has the potential to transform its immediate surroundings and improve traffic flow in a significant way. With a project value of US$192.2 million and a project duration of 30 months, the work carried out by CSCEC ME was recognised for its complexity, innovation, and resourcefulness, while technology played a key role in helping deliver the project.

38 January 2023 | MEConstructionNews.com BPME AWARDS 2022

The Categories

Excellence in Digital Planning and Design Implementation for the Year

Digital Construction Project of the Year

Big Project ME’s Technology Champion of the Year

Digital Construction Company of the Year (Contractor)

Digital Construction Company of the Year (Consultant)

Digital Construction Technology Provider of the Year (Software)

Digital Construction Technology Provider of the Year (Hardware)

Digital Construction Technology SME of the Year

Digital Construction Innovator of the Year

Net-Zero Technology Champion of the Year

Digital Collaboration Champion for the Year Digital Visionary of the Year

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February

Project of the Year

Winner: • Grand Egyptian Museum – Orascom Construction

Shortlisted Nominees:

• KEC Hub – Knowledge Economic City

• Bustanica – Emirates Crop One

The Grand Egyptian Museum by Orascom Construction took home the Project of the Year Award for 2022 because of its sheer scale and impact on national pride for Egypt. Hosting an entire civilisation’s history and cultural artefacts, the museum has a built-up area of 167,000sqm, which encompasses exhibition galleries, conference halls, landscaping, commercial retail, and F&B destinations.

Containing some

of the world’s most important treasures, the Museum has been built to reflect the grandeur and splendour of Ancient Egypt, and its design presented Orascom’s project team with a number of engineering and planning challenges –many of which were overcome through innovation and the use of technology.

“It’s a pleasure to win this award and it is a reflection of the work from the full team, and the senior management who have supported us. We’re looking forward to 2023 and to deliver more successful projects,” said Michael Youssef Atalla, Procurement manager – Tenders at Orascom Construction, who picked up the award on the night.

40 January 2023 | MEConstructionNews.com BPME AWARDS 2022
41 MEConstructionNews.com | January 2023 BPME AWARDS 2022

A Greater Sense of Data

Data can be considered as the foundation of decision-making, says Rob Clifton, chief operating officer at Asite. Speaking to Big Project ME, he states that data is a powerful tool that can improve projects, boost productivity, and create a single source of truth that ensures that project teams have access to the most up-to-date information available.

Furthermore, if correctly utilised, data has the potential to improve the wide built environment in a number of ways, such as by improving sustainability, developing greater understanding of operational performance, and increasing efficiencies.

However, in order for this to happen, companies need to be better at data management, and in this interview, Clifton outlines what the sector needs to do to fully capitalise on the potential on offer.

What are some of the fundamental challenges around data management?

One of the greatest challenges is around data silos. A single construction project involves countless stakeholders. They are contributing work and deliverables in various formats on multiple solutions. Unfortunately, deep point solutions are the norm. But these quickly become redundant without a cross-platform solution to bring information together.

This is where we as Asite come in. We allow everyone involved in a project to input their data and information into one secure location—the project Common Data Environment (CDE). Organisations can store, track, manage, and securely share project data from one centralised location across the supply chain, while maintaining a single source of truth.

What is the difference between structured and unstructured

January 2023 | MEConstructionNews.com 42
Big Project ME speaks to Rob Clifton, COO at Asite, about how data and its effective management, can have a transformative impact on the entire built environment ecosystem
TECHNOLOGY
Data Management

Structured data is machine-readable. It’s highly organised, easily accessible, and searchable. When working with information in digital format (data), it’s important that it can be understood and used by computer systems. This allows you to quickly search, query, and find data within large sets of information.

Take Building Information Modelling (BIM), for example. BIM is data. Models contain a whole host of different data about different elements of the project. But for the data to get into the model, it needs to be structured in specific ways.

Unstructured data, on the other hand, is more qualitative data—it can’t be processed or analysed as easily. This isn’t to say it’s not important for the project; it is. If you want to understand why a floor plan was designed a certain way or even what the weather was like on the day the walls were poured, this would likely be found in the project’s unstructured data.

Obviously, it would be better and more efficient if everyone organised and ‘structured’ their data in the same way—so no one has to re-type or repurpose the data—that is something the industry needs to work towards.

How can the industry address the lack of interoperability within the industry?

As I’ve said, data silos and the lack of interoperability are huge issues. Many software vendors still believe it’s in their best interests to lock in as much of the data captured as possible. The industry needs to change its mindset from focusing on individual contributions to a more lifecycle approach.

Yes, ensuring data is available for your part of the project is important. But so is ensuring that data can be accessed by your project partners today and in years to come. Your data doesn’t stop being valuable when you’re finished with it. If anything, it becomes more valuable over time.

Thankfully, ISO 19650 is making progress in this space. In the Middle East, the standard is being introduced widely as BIM

Changing mindsets

Data silos and the lack of interoperability are huge issues for the construction industry, and a change in mindset, towards a more lifecycle approach, is urgently needed.

adoption grows and our Asite platform benefits from full ISO 19650 compliance.

How can AI and Big Data be effectively utilised in the construction sector?

Local presence

Asite has focused on strengthening its Middle East presence and has two data centres in UAE and KSA, respectively, says Rob Clifton.

Let’s look at CDEs. Yes, it stores project data, but it also makes the data more usable. CDE’s allow us to store big data. Workflows can be set up to automate tasks, the data can be analysed to make better decisions. It also ensures all your project data is in one location, not only creating a single source of truth but also creates the well-organised data structure needed for AI functionality.

By allowing for the storage Big Data and then using current AI tools to improve productivity here and now, it also opens the door for even more disruptive tech in the future. But I think it all comes back to having the right processes and tools. The construction industry produces huge amounts of data. We need to get better at collecting and utilising it properly, leveraging the data so to speak. When combined with Big Data and AI, digital twins can unlock even more—like what-if scenarios and the ability to run simulations, providing previously

unavailable insights. Within the context of infrastructure and the built environment, it enables the futureproofing of these assets—if used correctly.

What are some recent examples where Asite’s work has benefited clients?

We work with major, global companies, including Laing O’Rourke, Skanska, and Aldar Properties. All of our clients benefit from a single, centralised repository for their data. They can access, edit, track, and manage all information assets in one location. Plus, it reduces the risk of data loss as the platform ensures a full audit trail.

Recently, we worked with a UK client where their use of our platform played a considerable role in their achieving their ISO 19650 re-accreditation. They could confidently sit and demonstrate how they conform with the standards by using our platform.

Also, we hold data centres globally in each of its key operating locations, so data management processes meet local requirements. Unlike many of our competitors, we have two data centres in the Middle East, one in the United Arab Emirates and a second in the Kingdom of Saudi Arabia.

We wanted to strengthen our Middle East presence and ensure project information for UAE and KSA projects, respectively, stay in their region.

43 MEConstructionNews.com | January 2023
data and how can it impact a project’s success?
TECHNOLOGY

2023 Forecast

The Future of Construction in 2023

As the engineering and construction industry continues to confront disruptions stemming from COVID-19, shifting project types, increased competition, and a retiring labour force, we are starting to see how the way we work has changed forever.

In the construction industry, the primary use cases for new technologies during the pandemic were remote worksite monitoring to bolster worker safety and progress reporting, supply chain management, and enhanced sustainability for green construction projects.

Here is how I see those technologies continuing to transform the industry, as well as others to come in 2023:

WORKER SAFETY WILL ALWAYS BE A TOP PRIORITY Safety has and always will be a top priority in the construction industry. Organisations are constantly looking

for ways to mitigate risk and improve working conditions. The contractors who have implemented advanced tracking technologies on the jobsite, such as vests with tracking chips, were able to help promote social distancing by creating real-time worksite maps. Project teams were able to closely monitor worker proximity and contact tracing, etc.

In 2023, we are poised to see safety technology move from identifying potential hazards to predicting them.

Combined with AI, organisations might use visual sensor data to track people and machinery to understand what happens and where it happens on a site, helping identify potential hazards before they unfold. As these technologies continuously track what heavy machinery is in use, where project materials are left, and how people move throughout a job site, they can help managers recognise potentially dangerous

January 2023 | MEConstructionNews.com 44
Burcin Kaplanoglu, vice president of Innovations at Oracle, shares his predictions about how technologies will continue to transform the global construction sector in the coming year
INDUSTRY OUTLOOK

situations and attempt to mitigate them before anything bad happens.

REMOTE SITE MANAGEMENT TO INCREASE OPERATIONAL EFFICIENCY

The days of every employee commuting to work every day seem to be behind us. In the construction industry, that means using remote site monitoring technologies to better understand what is happening on the job site in real-time.

At the Oracle Industry Lab near Chicago, we have been testing various technologies in a 5G-enabled workplace of the future. Using drones, sensor data, robotics, and more, we help our customers and partners keep an eye on a job site remotely in a web browser or mobile device.

These technologies combine safety, quality, and operational efficiency to give site project managers peace of mind that they don’t need to drive hours out of their way to check on each site every day.

I am not saying these technologies will make managing a construction site a fulltime remote responsibility, but it does allow for firms to turn it into a hybrid position.

While managers will still need to visit the job site to better gain a true sense of the space, as well as to examine the qualitative aspects of the site, we do anticipate companies growing more comfortable in their ability to rely on technology to virtually track quantitative data and day-to-day operations.

SUPPLY CHAIN TECHNOLOGIES WILL BE AS IMPORTANT AS EVER

One of the most essential lessons learned over the past few years has been how it is impossible to predict how potential delays in global supply chains can result in material shortages, and how that can impact project timelines.

Thankfully, supply-chain technologies are continuing to get better, and smart construction technology platforms allow teams to connect project scheduling information with design coordination connecting across related engineering and construction documents as well as automating supplier contract and payment management.

Delivery teams are able to connect critical documents across a single source of truth, or common data environment (CDE), including submittals, drawings, specifications, warranties, and instructions.

This allows teams to universally connect, update, and synchronise information across an entire project. For example, if a material’s price or availability changes suddenly, you may be able to quickly make the adjustment and see its impact on your budget and timeline. Connecting the office to field workflows to continue

to advance real time project productivity and resource tracking.

A unified, interoperable solution like this helps ensure that related documents are stored together, and the project schedule can stay on track. This helps teams synchronise the project schedule if new factors arise, ensuring that project milestones are met.

SUSTAINABILITY WILL MOVE BEYOND CORPORATE GOALS

Most companies by now have outlined their environmental, social, and governance goals, detailing how they plan to move to greener technologies and help curb climate change.

Looking forward, construction firms will look to not only just meet those goals, but to exceed them.

Predicting how natural disasters or the effects climate change could have on an asset is a difficult task, but intelligent construction platforms purpose-built for the industry can improve decision-making.

Predictive insights garnered through the use of AI might help mitigate risks and assist in lowering carbon emissions. For example, digital documents, drawings, and 3D models can help reduce paper consumption.

Even more helpfully, though, these construction technologies can help reduce waste and costly rework by visualising the end result before construction begins.

Construction companies have constantly been looking for ways to make their businesses more sustainable, and data analysis can be part of the solution.

Data analytics can change how everything is constructed, from individual buildings to major public infrastructure projects and even entire cities.

Data can help teams measure the sustainability of current construction methods and leverage those insights to show sustainability throughout the entire construction lifecycle’s plan, build, and operate phases. When employed correctly, data can help propel the built-asset industries toward long-term sustainable development.

45 MEConstructionNews.com | January 2023
INDUSTRY OUTLOOK
Remote job-site Site project managers can utilise technology to help them manage construction sites remotely. Fundamental change Kaplanoglu says that as construction companies continue to look for ways to be more sustainable and efficient, it will lead to

What to Expect in Real Estate in 2023

Real Estate Trends

As the UAE gears up for the year 2023, real estate investors must be proactive in understanding the trends that are likely to shape this dynamic industry. With a focus on sustainability and innovation, 2023 is poised to bring significant changes in the UAE’s real estate landscape.

Moreover, in line with the UAE’s long-term vision of transitioning towards sustainable development, green projects are expected to take precedence over other investment areas. From energy-efficient buildings and clean transportation infrastructure to reduced water consumption and improved air quality - investments in these domains are likely to reap enormous financial rewards than those without a focus on sustainability. Investors must also keep an eye out for innovative technologies such as artificial intelligence (AI) and

the Internet of Things (IoT), which are expected to revolutionise how developers create and manage buildings.

INTEGRATING SUSTAINABILITY

As an investor, it is essential to consider investing in projects that can facilitate sustainable development with positive long-term implications. For instance, the integration of smart water systems in housing projects offers more efficient water usage for the entire condominium and can save thousands of litres of water each day. In addition, such technology also includes features like monitoring and reducing use and detecting emergency leakages.

Waste management systems can also go a long way in making developments more sustainable – there are several advanced solutions that developers are now incorporating on-premises to help their residents make the switch to greener habits smoothly. By paying attention

January 2023 | MEConstructionNews.com 46
Yousuf Fakhruddin, CEO of Fakhruddin Properties, shares his anticipated trends in real estate development and investment for the coming year
INDUSTRY OUTLOOK
MIDDLE EAST

to these growth areas and ensuring the necessary resources are put into place for successful implementation, investors can create a lasting impact on society at large by promoting sustainability.

Ultimately, as more sustainable projects are implemented in 2023, investors should remember to take into consideration the long-term benefits that such initiatives can bring and ensure their investments align with these objectives.

Another major trend investors should watch out for is the increasing adoption of home automation solutions within real estate projects - as they benefit in more ways than one from it. With home automation, the real estate industry can enjoy significant benefits such as reduced energy costs due to optimised energy usage, improved security and convenience for tenants, better maintenance, and management of properties, and more.

AUTOMATION ADVANTAGES

Furthermore, home automation solutions also give tremendous competitive advantages as they provide an easier way for investors/ developers to integrate their projects into modern lifestyles by offering advanced technology-driven features that appeal to a wide range of customers. For instance, smart home systems can reduce energy costs by utilising intelligent controls to monitor and adjust room temperature, lighting, and other features according to user preferences.

This ensures optimised energy usage that reduces wastage without compromising on the consumption needs of the inhabitants. Additionally, this system can also alert homeowners/ tenants of any potential safety risks, such as gas leaks or carbon monoxide presence in their homes, further reinforcing its reputation as a secure property.

In addition, automated systems can provide convenience features like remote control of lights and appliances, voice commands for music playback or quick access to entertainment options like, all of which add value to the living experience, as well as the resale value of a real estate investment.

QUALITY IN THE AIR

Indoor air quality is also increasingly becoming a crucial factor in sustainable

Lasting impact

Sustainable developments offer investors an opportunity to create a lasting impact on society.

Long-term benefits

Investors should remember the longterm benefits that sustainable initiatives can bring to a project or development, says Yousuf Fakhruddin.

architecture. This is another crucial factor to keep in mind for investors looking to buy a property. Investing in properties equipped with technologies that help maintain healthy IAQ can go a long way in the years to come. As the demand for healthier indoor air quality grows, so will the need for more sustainable developments in the time to come.

Proper indoor air quality management involves controlling not only the indoor temperature and humidity levels but

also ensuring that adequate ventilation, filtration, and purification systems are in place. Additionally, optimum indoor air quality management can help reduce energy consumption by optimising heating and cooling systems – making it an effective way of reducing our environmental footprint.

We at Fakhruddin Properties, for instance, have incorporated a highquality air purification technology that is both energy-efficient and cost-effective. Our Indoor Air Quality solutions are designed with precision technology that can effectively reduce airborne particles, bacteria, carbon dioxide levels, odours, and other pollutants for a completely safe and healthy environment.

A healthy indoor environment contributes significantly to a healthy lifestyle, and more and more properties will be seen incorporating solutions to offer that in the new year. Overall, 2023 is expected to bring exciting opportunities for real estate investors across the UAE, but it may be wise to be prepared for any kind of economic downturn, just in case it was to make its way towards this space, so as to make the best of one’s investments.

Investors will also benefit by being aware of the government’s plans for transitioning towards a digitalised economy. By putting their money in tech-enabled infrastructure, they can gain access to more efficient processes that can help them achieve better returns.

Similarly, they must understand the importance of data analytics and its role in making informed decisions about future projects. Investors can remain competitive and maximise their profits by staying up to date with the latest developments in this space.

In addition, they should be wary of the potential risks associated with using outdated technology and projects that are not compliant with the latest environmental regulations. As the UAE moves more aggressively towards green initiatives and sustainability goals, investors need to ensure they are aware of all relevant legal requirements before committing to their resources. Doing so will not only make them more compliant but also enable them to capitalise on any beneficial changes that may arise due to these initiatives.

47 MEConstructionNews.com | January 2023
INDUSTRY OUTLOOK

Final update

One Za’abeel begins final construction works

Iconic mixeduse development on course to be handed over in 2023, developer Ithra Dubai says

Ithra Dubai says it has begun final construction work at One Za’abeel development after it revealed that the cladding work for the development has been completed.

The developer adds that the project remains on course for its grand opening in 2023.

The development is taking shape in Dubai’s skyline after the achievement of

a new milestone in Q3 2022, it added in a statement announcing the completion of the full glass cladding of its 3 towers: One Za’abeel The Residences, One Za’abeel Tower, and The Link.

Work on the development is now focused on the interior fit-out and will be available for residents and visitors later in 2023, as per phased handover schedule, said Ithra Dubai. Current work is focused on the interior fitout in compliance with Gold LEED certification requirements in preparation for the phased handover, it added.

“An architectural and engineering marvel, One Za’abeel is redefining the concept of mixed-use developments in Dubai, and the region. The development’s towers and panoramic sky concourse, The Link, offer the finest in retail, residential, office space, and hospitality. The Link

229

Number of hotel rooms available at One Za’abeel

is posed to break the Guinness World record for the “Longest Cantilevered Building,” said the developer.

Raad Al Jarrah, Chief Development Officer at Ithra Dubai, added: “We’re developing and creating an iconic mixed-used development that will contribute to Dubai’s landscape.”

The mixed-use development will provide high-end retail experiences throughout The Gallery on its podium levels, and will feature the world’s first luxurious urban vertical resort.

Managed by One&Only, the resort includes 94 One&Only Private Homes, and 229 luxurious hotel rooms and suites.

One Za’abeel’s hospitality offering also includes SIRO Hotel, which will manage 132 guest rooms and a state-ofthe-art wellness and recovery fitness club, the developer concluded.

48 PROGRESS REPORT
January 2023 | MEConstructionNews.com
Current works Work on the development is now focused on the interior fit-out, in compliance with Gold LEED certification requirements. C M Y CM MY CY CMY K

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