Big Project ME March 2021

Licensed by Dubai Development Authority

178 March 2021

MEConstructionNews.com

THE BUSINESS OF CONSTRUCTION

Redefining Perspectives

BIG PROJECT ME SPEAKS EXCLUSIVELY TO JOHN PAGANO, CEO OF AMAALA AND THE RED SEA DEVELOPMENT COMPANY, ABOUT HOW SAUDI ARABIA'S GIGA PROJECTS WILL REVITALISE THE KINGDOM

Experience the Progress.

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1

CONTENTS

March 2021

08

10

18

20

30

44

ANALYSIS

FEATURES

INSIGHT

08

The briefing

20

38

Comments

The big picture

Gavin Davids speaks to John Pagano, CEO of AMAALA and TRSDC, about how the giga projects will reshape the Kingdom’s construction and real estate landscape

40

Tenders

44

Progress report

Industry specialists discuss how Saudi Arabia can jumpstart its recovery and why C&D waste recycling is gaining traction

12

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

16

Market report

18

Analysis

ProTenders’ Dr Deva Palanisamy looks at KSA’s construction sector in Q1 2021

In profile John Pagano

30

Project profile In Full Bloom

Big Project ME speaks to Gerard Evenden of Foster + Partners about the recently launched Coral Bloom project and how it will shape the future of The Red Sea Project

The industry’s brightest minds share their thoughts on a variety of topics and issues impacting the construction industry

Big Project ME, in association with ProTenders, provides the biggest tenders for the month of March 2021

Nicklaus Design to design championship golf course for an exclusive residential community in Qiddiya

Ali Sajwani says that investment opportunities in Saudi Arabia are growing as the country transforms its economy

MEConstructionNews.com | March 2021

2

WELCOME

Introduction

Change in the Kingdom

D

uring my welcome speech at the Big Project ME Awards at the end of January, I had mentioned that we would be holding a webinar in the first quarter of 2021 focusing on the Saudi Arabian construction sector, and the many opportunities available within it for both domestic, regional, and international firms.

Given the interest in that topic, we felt that it would be the perfect time to dedicate this month’s issue to the Kingdom, particularly with the giga projects powering its resurgence starting to ramp up operations.

I was fortunate to be able to speak to John Pagano, CEO of both AMAALA and The Red Sea Development Company, about how these massive projects will not only be drivers of change for Saudi Arabia but will reshape the entire region’s construction landscape.

We’ve often talked about sustainability and efficiency in these pages, and while there’s been progress in recent years, I think that the time has come for us to see them become tangible realities. Over the course of a nearly hour-long conversation with John,

March 2021 | MEConstructionNews.com

it became very clear that these aren’t mere catchphrases or niceties being promoted, but are in fact very real, minimum standards that contractors, subcontractors, consultants and suppliers will be expected to adhere to.

Coral Bloom is perhaps the best example of this. While I’ve covered many sustainability-focused projects in my years covering construction, this is perhaps the first one I’ve seen that is actively designed around the care and preservation of an entire ecosystem. It’s an exciting foray into a new way of design and development, one that could have huge implications on how we create new spaces and buildings in the future.

It’s often been said that change can only come from the top – well here it is. Two of the largest and most high-profile projects in the world are demanding that construction in the region change and meet their standards, with no compromises. Now, the question is, will the industry be able to meet them?

As I mentioned, we will be holding our first ever Construction Intel Summit KSA, so if you’re interested in taking part, please do get in touch. I’d love to hear your ideas!

Gavin Davids

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

4

Licensed by Dubai Development Authority

178 March 2021

MEConstructionNews.com

THE BUSINESS OF CONSTRUCTION

Group MANAGING DIRECTOR Raz Islam raz.islam@cpitrademedia.com MANAGING PARTNER Vijaya Cherian vijaya.cherian@cpitrademedia.com

Editorial HEAD OF EDITORIAL & CONTENT Gavin Davids gavin.davids@cpitrademedia.com +971 4 375 5480

Redefining Perspectives

BIG PROJECT ME SPEAKS EXCLUSIVELY TO JOHN PAGANO, CEO OF AMAALA AND THE RED SEA DEVELOPMENT COMPANY, ABOUT HOW SAUDI ARABIA'S GIGA PROJECTS WILL REVITALISE THE KINGDOM

Advertising COMMERCIAL DIRECTOR Jude Slann jude.slann@cpitrademedia.com +971 4 375 5714 HEAD OF KEY PROJECTS Andy Pitois andy.pitois@cpitrademedia.com +44 7816 843610

Design ON THE COVER

Big Project ME focuses on the giga projects in Saudi Arabia and the impact they will have on the Kingdom’s construction and real estate sectors

ART DIRECTOR Simon Cobon simon.cobon@cpitrademedia.com DESIGNER Percival Manalaysay percival.manalaysay@cpitrademedia.com

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March 2021 | MEConstructionNews.com

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6

ONLINE

MOST POPULAR

READERS’ COMMENTS

FEATURED

CONSTRUCTION

INDUSTRY TALK: TALENT AND

TRSDC announces ‘Coral Bloom’ plan for main hub island at destination

GREEN TECHNOLOGY TOP INDUSTRY’S 2021 WISH-LIST

I think if there is one thing these guys are all sharing is that the industry has to be realistic about how the year is going to pan out. I am sure GlobalData has done CONSTRUCTION

a thorough job in terms

Select Group launches latest project in Business Bay

of how the construction market in the region is reacting to the Covid-19 crisis but I would argue that

ANALYSIS: ALEC identifies key trends for the construction sector in 2021

the writing was on the wall for our mega-projects in the region going back 18 months

CONSULTANT

to 2 two years – possibly

Phase One of Sa’ada development in Bahrain now open says EMPC

longer. If you look at the big projects that are underway in Saudi Arabia, for instance, you can see that even they are having to balance out making a statement with making a development sustainable. And as painful as it may be in the short-

CONSULTANT

term that has to be a good

Intertek starts fire testing and certification services for Saudi building materials sector

thing going forwards. I firmly believe that the onus is now on the construction industry to prove it can be greener and is also willing to invest in its talent. Let’s make sure we also pack our brains as we find our

CONSTRUCTION

India pavilion at Expo 2020 Dubai to be complete by March 31 March 2021 | MEConstructionNews.com

VIDEO: How BIM is at the heart of Amana’s award-winning achievements

feet again in the recovery!

Name withheld by request

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VIRTUAL

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About the

Virtual VE Summit

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While the construction industry is weathering the storm of fast-tracked delivery schedules, constrained budgets, unfavourable contract terms, rising material costs and more, there are now additional complications to contend with. COVID-19 will continue to impact the industry in a number of ways in the near to mid-term despite the availability of vaccines.

This event will bring together the industry’s leading minds to engage in discussions and share presentations, all of which you will be able to follow from the comfort and safety of wherever you are.

The construction industry is at a precarious point and must leverage modern techniques and tools to continue delivering projects that sustain economic and social growth, while maintaining margins. A greater focus on sustainability and reducing waste will renew calls for more efficient design and delivery. Join the debate and shed light on current trends, issues and solutions.

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Register now Register for free and stay connected

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8

THE BRIEFING

Saudi Arabia

Can the Kingdom spend its way its way out of trouble?

SAUDI ARABIA

Paul Godfrey says that Saudi Arabia’s 2021 budget shows that the quest to diversify the economy is an uphill struggle March 2021 | MEConstructionNews.com

W

hile Saudi Arabia may well have $1.3 trillion of development projects underway, the reality is that its core economic platform has taken an unprecedented battering in the last 12 months.

When the finance ministry announced the nation’s annual budget on 16 December 2020, there was precious little in the way of good news.

Indeed, the projection was that the budget deficit will soar to

Negative forecasts Successive negative forecasts have projected an annual budget deficit of $50bn for 2020, up $15bn on 2019.

Austerity measures Saudi Arabia has introduced a series of austerity measures to help bolster the economy.

around $79 billion, with the official forecast stating that: “It is expected that the budget deficit will increase at the end of 2020 to about $79.45 billion, and we aim to reduce it by the end of 2021 to $37.6 billion,” This follows successive negative forecasts, with the Kingdom having projected an annual budget deficit of $50 billion for 2020, up $15 billion on 2019.

“The (economic) crisis has been managed with great care and effectiveness, which led to the mitigation of the negative effects on

9

$1.3 trillion Total value of projects currently underway in Saudi Arabia

the Saudi economy,” Saudi Crown Prince Mohammed bin Salman was quoted as saying by state media.

“2020 was a difficult year for the whole world due to the outbreak of the coronavirus pandemic, but the kingdom’s economy has proven its ability to withstand its impact.”

The reality is, the Kingdom is tightening its belt and pressing ahead with austerity measures amid low oil prices. Saudi Arabia plans to spend $263.91 billion in 2021, according to the budget statement, a drop of about seven percent compared to this year.

A core challenge is the fact that unlike other GCC economies, the Kingdom has been relatively slow to diversify away from the fossil fuel sector as the primary source of income. Oil income still contributes to more than two-thirds of Saudi public revenues: this is more than twice the level we see, for example, in the UAE, where government-led initiatives have led to a significant rise in the role of the SME/enterprise sectors, along with massive, early-stage commitment to retail and property development.

It should not be forgotten, as well, that in November, energy titan Aramco posted a 44.6 per cent slump in profits for the third quarter, as the coronavirus pandemic dramatically reduces the global demand for crude oil.

In fact, even as we move into 2021, there is little hope of turnaround here: Saudi Arabia needs a crude price of about $80 a barrel to balance its budget, economic experts say, far higher than the current price of around $50.

Ironically, without these key oil revenues, it becomes harder to pay for the moves towards diversity – and these deflated prices will hinder Crown Prince Mohammed bin Salman’s ambitious “Vision 2030” reform programme.

Hence, a series of austerity measures that have included tripling value added tax (VAT) to 15 percent, an unpopular measure that has weighed on household income, pushed up inflation and hit consumer spending.

Other aggressive campaigns include

2020 was a difficult year for the whole world due to the outbreak of the coronavirus pandemic, but the kingdom’s economy has proven its ability to withstand its impact”

hiking fees on expatriate workers and raising fuel and electricity prices.

Notwithstanding, the government has been careful not to cut public jobs and salaries amid already high youth unemployment. Nearly twothirds of all Saudis are employed by the government, and the public sector wage bill accounts for roughly half of all government expenditure.

As we move deeper into 2021, only time will tell if the Kingdom can spend its way out of trouble and to what extent the $1.3 trillion of development will indeed create a more balanced economy and a more favourable picture for powerful foreign investment.

MEConstructionNews.com | March 2021

10

THE BRIEFING

Reimagining Waste MIDDLE EAST

Big Project ME speaks to Ruchin Garg, regional manager (MEA) at CDE, about the company’s quarter-century journey, their commitment to sustainability and a circular economy, and the projects in the region

March 2021 | MEConstructionNews.com

E

stablished in 1992, CDE is a Northern Ireland headquartered organisation and a supplier of wet processing equipment, with landmark projects such as the world’s largest sand washing plant and the world’s most extensive construction and demolition (C&D) waste recycling plant under its belt.

With operations spread across eight regions from Northern and Latin America to Australasia, CDE’s HQ in Cookstown is also the world’s largest campus dedicated to the wet processing of materials in sand and aggregates, mining, C&D waste recycling, industrial sands, and environmental sectors.

Ruchin Garg, regional manager for Middle East & Africa (MEA) at CDE

tells Big Project ME, that the company installed its first project in the MEA region in 2008. Since then, CDE has installed over 100 projects across the region with different applications.

Located in Qatar, CDE’s first plant in the region can process 1200 tonnes of dune sand per hour, is the largest sand washing plant in the world, and includes the provision to recycle over 90% of the water used in the project.

“CDE spearheaded the region with its sand and aggregates washing solutions for the construction sector – with plants in Kuwait, Saudi Arabia, Oman, Bahrain, South Africa, and Tanzania. The range of CDE solutions has revolutionised the sand and aggregate washing industry in terms of efficiency, allowing customers to wash even the dirtiest of sands

11

Looking forwards Garg says that the regional infrastructure growth and greater adoption of the circular economy will drive demand for CDE waste recycling.

100

Number of projects across the MEA region

and aggregates thanks to its pinpoint accuracy in silt and clay cut points.”

“Looking to the future, the region is bustling with expected infrastructure growth and greater adoption of the circular economy – and we are excited to play our role in the region’s progression,” he adds.

“The major market trend we have observed is the push towards a circular economy. Soaring urbanisation presents a mounting challenge to meet the demands of the construction industry, and recycled materials are an effective solution when supported by the most appropriate technologies and practices.

“For 2021 and beyond, we foresee the region adopting wet processing technologies for higher-end product specifications and waste diversion.

Our clients are a testament to our commitment to research and development, process design, manufacturing quality and after-sales services. We have a dedicated approach to each client with a relentless focus on economic and environmental sustainability for the people and the planet.”

UNLOCKING VALUE Garg states that when supported with the appropriate processing practices and technology, sand and stone resources recovered from C&D activities can be utilised for high-value construction and infrastructure projects. CDE has helped customers around the world to realise the potential in recycled aggregates.

Commenting on their after-sales services, Garg says they have a customer care team based in Dubai, and that the local unit of engineers and project managers are equipped to provide bestin-class support for their customers.

Additionally, CDE also works with the customer to provide in-depth training on maintenance and optimisation.

“The most recent development in this field is a suite of smart technology, CDE CORE, for plant maintenance and breakdown. This innovative range of technology solutions enables customers to increase the efficiency of their plant, automate processes, and lower their operating costs.”

Asked to outline some of the challenges in the region, Garg says, “One

Legislation across the region needs to be revisited to allow usage of recycled sand and aggregates with the necessary process in place” of the key challenges in C&D recycling is the high level of contamination, which is much higher than those in similar conditions in other parts of the world.

Globally, he observes that the industry’s leading issues include sand depletion, water management, and sustainable mining. CDE, through their research and development, and engineering capability strives to be part of the solution, Garg insists, highlighting the importance of educating clients about the circular economy and driving a real change in the industry’s approach to sustainability.

Garg says that Saudi Arabia’s focus to build a more robust economy while reducing its dependence on crude oil will help the nation and the region, in general. Similarly,

he points out the UAE’s promising initiatives across different emirates.

He elaborates, “In the region, sharp economic growth in the construction industry has led to increasing legislation aimed at reducing the volume of waste destined for landfill.

In 2019, the Ministry of Climate Change and Environment (MOCCAE) issued a Ministerial Resolution on the use of recycled aggregates.”

“This outlined the requirements for recycling, among other nonhazardous solid waste, concrete and gravel into new, high-value materials for projects including road surfacing.

The resolution also mandated local departments to ensure contractors collect and sort waste generated at their construction and demolition sites.”

He continues, “Although there is progress being made right across the MEA region in the field of C&D waste recycling, there is still work to be done. Legislation across the region needs to be revisited to allow usage of recycled sand and aggregates with the necessary process in place.”

“We share the region’s focus towards a circular economy and sustainable development and look forward to upcoming opportunities in the region which can solve the industry’s main challenges.”

MEConstructionNews.com | March 2021

12

THE BIG PICTURE

01 CANADA

03 GERMANY

Canada’s SNC-Lavalin sells oil and gas business to Dubaibased Kentech

German giants team up to accelerate implementation of green-friendly technologies

Kentech Group, the Dubai-based specialist services and solutions firm for the energy sector, has announced that it has entered into a definitive agreement to acquire the oil and gas business of the Toronto-listed SNC-Lavalin Group.

Completion is anticipated in the first half of 2021, subject to regulatory approvals.

The prospective acquisition includes the people and assets brought together through SNC’s acquisition of Kentz and other energy services businesses.

02 UNITED STATES

Volvo CE reports 6% rise in net sales for Q4 2020 Volvo Construction Equipment (CE) said that despite a steep drop in demand in H1 2020 due to the pandemic, it recovered well, delivering improvements by Q4 2020.

Net sales in the last quarter of last year increased by 6% to SEK20,810 million.

Adjusted for currency movements net sales were up by 15%. Operating income amounted to SEK2,321m, corresponding to an operating margin of 11.2%.

Earnings were positively impacted by higher machine and service sales. For the full year net sales decreased by 8%, to SEK81,453m.

BASF, a German chemical company, has announced a strategic partnership with Siemens Energy to help accelerate the implementation of new technologies designed to lower greenhouse gas emissions.

BASF said that by combining its technological expertise with Siemens Energy’s product and services portfolio, it aims to extend its leading role in lowering CO2 emissions in chemical production.

04 SLOVENIA

06 EGYPT

Riko completes construction on Slovenian pavilion at Expo 2020 Dubai

Orange Business Services to design and build new data centre for Egypt’s New Administrative Capital

Riko, the Slovenian engineering group, has completed construction of the Slovenian pavilion at Expo 2020 Dubai, and has handed the project over.

“The pavilion highlights three elements that best identify Slovenia: water, as a symbol of life, vitality, flow of materials and ideas; the floating forest, the nature that is the heart of Slovenia and the soul of Europe; and a sieve, a large “parasol”, a wooden umbrella, which is a technological invention with a strong Slovenian identity,” the company says.

March 2021 | MEConstructionNews.com

05 SOMALILAND

ADFC-funded solar project goes operational in Somaliland Abu Dhabi Fund for Development (ADFD) has announced that its funded solar energy project at Berbera City in the African nation of Somaliland has been connected to the local electricity grid.

Set up at a cost of eight million dollars, the project will meet the increasing demand of the entire city of approximately 50,000 people, ADFD stated.

The project was completed within seven months, from March to October 2020, overcoming the obstacles created by the coronavirus pandemic.

Orange Business Services, a networknative digital services company, has announced that it will design and build a new data centre to provide cloud services for Egypt’s ‘New Administrative Capital’.

The services offered by the data centre are planned to start on schedule, in the first half of 2021, despite the challenges of the Covid-19 pandemic.

Once implemented, Orange Egypt will also manage and operate the new data centre.

01

02

THE BIG PICTURE

13

03

04

08 09 06 07

05

08 JORDAN

Work on Jordan’s BRT project 53% completed 07 EGYPT

Egypt completes $192m rehabilitation work on 831km long canal network Hala El Said, Egypt’s Minister of Planning and Economic Development, has announced that rehabilitation and lining work has been completed on 831-kilometre-long canals in various governorates in January, at a total investment of $192 million.

According to local media outlets, the minister said that the funding available for the project has so far exceeded $256.4 million and that an increase in funding is being studied in light of implementation rates.

Work is moving at a steady pace on the Bus Rapid Transit (BRT) project between ,.Amman and the city of Zarqa, with 53% of work on the line complete.

The project is likely to completed within the next 18 months. infrastructure in the second half of 2020.

Secretary General of the Ministry of Transport Wisam Tahtamouni said the value of the project’s four stages has hit $175 million. Work on Phase One of the national railway network project connecting the ports in Aqaba through the city of Maan, up to the proposed land port in the Madouneh area is set to start imminently.

09 KUWAIT

50% of works completed on Kuwait’s Al Andalus complex 50% of construction works on the mixed-use Al Andalus complex in the Hawally district of Kuwait is complete, SSH have announced. The project is being developed by the Ajial Real Estate and Entertainment Company.

According to a statement from SSH, all structural work has been completed and architectural finishes are heading towards the tower elevations and inside floors.

The project is spread across more than 40,000sqm and is linked by a pedestrian bridge to an existing multilevel car park with approximately 1,200 parking bays.

MEConstructionNews.com | March 2021

14

THE BIG PICTURE

18

13 14

11 12

15

10 16 17

10 SAUDI ARABIA

12 QATAR

$2.1bn in construction works contracts awarded at KAFD

Egis wins contract for Doha industrial wastewater treatment project

Construction works contracts in excess of $2.1bn have been awarded for the King Abdullah Financial District (KAFD) by Saudi Arabia’s Public Investment Fund (PIF).

Aiman Al-Mudaifer, PIF’s head of the Local Real Estate Division, said most of the contracts were awarded to companies based in the Kingdom.

KAFD is expected to spread over an area of 1.6 million sqm in the north of Riyadh.

The project is expected to comprise of 59 towers and house 12,000 residents.

March 2021 | MEConstructionNews.com

11 BAHRAIN

Bahrain to begin major highway upgrade in April Bahrain authorities have announced that a major project to develop the Al Fateh Highway with a view to easing traffic will be launched in April.

The works will extend from the Shaikh Hamad Causeway in the north to the Mina Salman intersection in the south.

Main works will include expanding the Al Fateh Highway into four lanes in each direction, with the construction of a three-lane tunnel each way at the intersection of Al Fateh Highway with Awal Road, and the provision of a ground intersection controlled by traffic lights.

Ashghal, has awarded Egis a design, build, operation and maintenance contract for the first phase of the Integrated Industrial Wastewater Treatment Works project in Doha.

The deal outlines the provision of professional consultancy services in relation to designing, building, operating and maintaining the wastewater treatment plant.

The contract engages a team of 18 professionals for a period of over four years, said a statement from Egis.

THE BIG PICTURE

15

14 UNITED ARAB EMIRATES

Wilo Middle East acquires PumpsPro 13 UNITED ARAB EMIRATES

Tadweer reopens construction waste crusher in Al Dhafra region The Ghayathi Crusher in the Al Dhafra region has been reopened according to the Abu Dhabi Waste Management Centre (Tadweer). The move is said to be part of the centre’s strategic plan to promote environmental sustainability and develop an integrated waste management system in Abu Dhabi.

The facility aims to cut construction and demolition (C&D) waste in the emirate and can handle 2,000 tonnes of C&D waste per day (30,000 tonnes per month).

Wilo Middle East (WME), an international manufacturer and innovator of pumps and systems, has announced the acquisition of PumpsPro, a pump solution service provider under Direct Trade House International LLC (DTHI). The acquisition entails the creation of a new business unit that will maintain the name of PumpsPro but will be managed and operated as a Wilo company.

Wilo Middle East will acquire all of PumpPro’s assets, highly skilled service workforce, brand, and extensive portfolio of customers. The move is expected to further reinforce Wilo Middle East’s position as a complete solution provider.

15 UNITED ARAB EMIRATES

UAE implements 129 development projects worth $3.2bn The UAE’s Ministry of Energy and Infrastructure has announced the implementation of 129 development projects worth $3.2 billion, as part of the ministry’s five-year plan, running from 2018 to 2023.

These plans include 12 infrastructure developments for educational facilities, projects to develop 15 government buildings accessible to the public, 28 projects for the construction and maintenance of federal roads, and a further 31 projects for dams and water canals, at a total cost of $1.41 billion.

17 OMAN

16 OMAN

Johnson Arabia expands Oman presence with AWP fleet Johnson Arabia has announced a simultaneous expansion of its regional geographical footprint and its aerial work platform (AWP) fleet, augmenting its number of units with 112 new AWPs, most of which will be deployed in its new location in Muscat, Oman.

Johnson Arabia said that it will soon take delivery of 112 new machines, which will complement its existing fleet across the group.

The delivery will comprise the latest models from the two leading access equipment manufacturers JLG and Genie.

OPAZ and Sabeen Group to build 10,500sqm commercial entertainment centre in SEZAD Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) and Sabeen Group have signed a land usufruct agreement to set up a 10,500sqm commercial entertainment centre in the Special Economic Zone at Duqm (SEZAD).

The first phase of the project will consist of cinemas, virtual reality games, and an indoor golf course, as well as restaurants, shops with local, regional, and international brands, and a car park.

18 UZBEKISTAN

ACWA Power announces $2.5bn worth of key Uzbekistani power projects ACWA Power have announced updates related to the development of power projects in Uzbekistan.

This includes the ground-breaking ceremony for the 1500MW Sirdarya CCGT plant, and the signing of power purchase and investment agreements for wind power plants in Bukhara and Navoi.

The Sirdarya CCGT plant is expected to meet 15% of power demand in Uzbekistan and comprise of 8% of installed power capacity when complete.

MEConstructionNews.com | March 2021

16

MARKET REPORT

Industry outlook

KSA Construction Outlook for Q1 2021 SAUDI ARABIA

Dr Deva Palanisamy, VP Project Intelligence at ProTenders, says that Saudi Arabia’s construction sector is showing positive signs for the first quarter of 2021

T

he ongoing pandemic has created a number of challenges not only for the construction industry but also disrupted the global economy and Saudi Arabia has

March 2021 | MEConstructionNews.com

been no exception. The construction industry, particularly the Oil & Gas and Infrastructure sectors, were performing well and witnessing a surge in activity across many sectors. The government announced a raft of measures including a cut back in projects spending as its revenues from oil sales declined sharply. Beyond the short-term impact of an economic downturn on construction demand, the crisis is also expected to hit long-term supply and demand, causing in lasting shifts in investment patterns.

However, data from Q1 2021 shows that Saudi Arabia has weathered the storm fairly well. At $5.2bn the value of contracts awarded between June and December 2020 was just 20% down on the same period in 2019.

Currently, there are 1289 projects under construction, with Urban sector projects account for $102.6b by value.

The project on-hold rate is significantly higher when compared to Q1 2020. As of February 2021, the total project value is

estimated to be worth $1358.1b. The building sector is likely to have the highest share $620.8b (45.71%) followed by the infrastructure $498.3b (36.69%) and Oil and Gas sector $239b (17.6%).

Despite this, there is no doubt that 2021 will end up being a very difficult year. This reflected by the revised forecast in which we anticipate a total of $10bn worth of contracts to be awarded for the year, down from $45bn awarded in 2019.

The construction industry is expected to grow due to expected economic recovery resulting in increasing awareness about antibacterial construction materials and much will depend on the oil price. The schemes like PIF projects are being prioritised and increasing emergence of PPP projects is another insignia that Saudi Arabia is exploring different options to finance its 2030 Vision. Although a high level of economic insecurity continues, the economic activity could be back on track by 2021, if the virus is controlled within the next few months and the right economic policies are enacted.

MARKET REPORT

VALUE OF PROJECTS

BY STATUS ($BN)

ONGOING PROJECTS

BY SECTOR ($BN) Infrastructure

Planning

On Hold

1,358.1 Total Under Construction

UPCOMING PROJECTS

BY SECTOR ($BN)

Urban Buildings

101.4

127.1

649.0

17

102.6

Infrastructure

Urban Buildings

191.9

75.3

302.9 Total

406.2 Total

Oil & Gas

Oil & Gas

Design

302.9

181.6

Tender

97.5

98.9

75.3

Data from Q1 2021 shows that Saudi Arabia has weathered the storm fairly well. At $5.2bn the value of contracts awarded between June and December 2020 was just 20% down on the same period in 2019”

500

60

300

250

30

150 Planning

Design

Planning

On Hold

450

On Hold

90

Under Construction

750

Tender

600

On Hold

120

Under Construction

1000

Tender

750

Design

150

Planning

1250

Under Construction

INFRASTRUCTURE PROJECTS

BY STATUS (TOTAL NUMBER)

Tender

OIL & GAS PROJECTS

BY STATUS (TOTAL NUMBER)

Design

URBAN BUILDINGS PROJECTS

BY STATUS (TOTAL NUMBER)

CONSTRUCTION CONTRACT AWARD FORECAST Q1 2021 ($BN) Main Contract Award

5.4

Tender

Postponed Award

120

100

80

60

40

92.1 20

Source: ProTenders

97.5

MEConstructionNews.com | March 2021

18

ANALYSIS

Saudi Arabia

Why investors should take notice of Saudi Arabia SAUDI ARABIA

Ali Sajwani, general manager at DAMAC Properties, says that with Saudi Arabia undergoing a rapid transformation, investment opportunities in the Kingdom are growing

T

he Kingdom of Saudi Arabia is undergoing a phenomenal social and economic transformation under the leadership of King Salman and Crown Prince Mohammad Bin Salman. In a bid to diversify its non-oil March 2021 | MEConstructionNews.com

economy and attract FDI, the government has launched a series of initiatives, amongst which, the Saudi Vision 2030 stands as a blueprint for the future.

The all-encompassing strategic vision, which is designed to usher in long-term social and economic prosperity for the country, is already showing great results. During the recent G20 Summit, Saudi Arabia’s Minister of Investment Khalid al-Falih said that foreign direct investment to Saudi Arabia had risen 12% in the first half of 2020, compared with the same period last year. This is a great indicator of the confidence that foreign investors have in the Saudi market.

Saudi Arabia’s tourism industry is also growing on the back of visa and policy reforms. As part of the first phase of its National Tourism Strategy, the Saudi government has launched a $4 billion tourism fund, which aims to develop 38 sites across seven destinations by 2022. As part of Vision 2030, the Saudi government wants the

Religious tourism Saudi Arabia is investing in developing Makkah and Madinah as it expects religious tourism to grow over the coming years.

$36.7 billion Tourism generated revenue for KSA by 2023

industry to contribute to at least 10% of its total GDP, up from 3% currently.

According to government projections, tourism is expected to generate $36.7 billion for the country by 2023, with an annual 5.6% increase in the number of visitors by 2023. The government is also focusing on investing in domestic tourism, which is expected to hit 70.5 million visitors by 2023, almost double the current estimate, according to Colliers International Group.

RELIGIOUS TOURISM By far, the country’s main source of tourism will continue to be religious tourism. Saudi Arabia is home to the two holiest cities in Islam: Makkah and Madinah. According to the Pew Research Centre, the global Muslim population is expected to increase by 70% – from 1.8 billion in 2015 to nearly 3 billion in 2060.

As performing a pilgrimage is a main pillar of the Muslim faith, religious tourism to the country has enormous potential.

ANALYSIS

To capitalise on these projections, the inaugural Makkah Economic Forum highlighted eight investment initiatives in the Hajj and Umrah sector worth over $266.6 million. For one project alone—the Makkah and Madinah historical sites development project—the government has set aside $113.3 million in investment to renovate four historical sites in the two cities.

The Ministry of Hajj and Umrah has also launched several initiatives to encourage small to medium-sized businesses to invest in companies offering Umrah services and improve the private sector’s performance.

Tourism demand is expected to grow with the government working to increase its capacity to accommodate 30 million pilgrims annually by 2030.

The government has put considerable effort and resources into ensuring that the required infrastructure is in place to support the influx of worshippers.

These investment and development plans have helped shape several hospitality projects in and around both these cities over the past few years.

While the purchase of real estate property is restricted for foreign investors in the holy cities, the current pipeline of projects suggests that the real estate sector is poised for growth in the country, fuelled by demand in Makkah.

The influx of religious tourists has also helped boost the performance of the retail sector with a multitude of retail stores and F&B shops opening up across the cities. This has, in turn, allowed the real estate sector to expand across a variety of segments.

The long leasehold format, from a regulatory point of view, will prove to be key to the demand for real estate developers in the country.

19

Tourism is expected to generate $36bn for the country by 2023, with an annual 5.6% increase in the number of visitors by 2023.

The government is also focusing on investing in domestic tourism” Transforming kingdom Saudi Arabia’s transformation makes it an ideal environment for investment, says Ali Sajwani.

Steady growth Riyadh’s real estate sector is showing strong signs of growth as the Kingdom’s economy recovers.

decade. The multiple and interconnected aspects of Saudi Arabia’s transformation make for an ideal environment for investment in the country’s real estate and hospitality markets.

With initiatives such as the Sakani affordable housing programme, which is aimed at providing affordable homes for Saudi citizens via subsidised land plots and access to cheaper finance, transactions in Riyadh, and the country’s second largest city Jeddah, are expected to grow in the coming years.

Even the Saudi Real Estate Refinance Company (SRC), owned by the Public Investment Fund in Saudi Arabia, which was established to develop the

housing finance market in the country, has purchased a portfolio of mortgages worth over $799 million in July 2020. The move aims to provide additional liquidity to the market, allowing for additional loans to be issued, to increase the home ownership rate across the Kingdom.

A PROMISING FUTURE Between 2019 and 2021, analysts expect 70,000 units to be added in Riyadh and 25,000 units in Jeddah. Prices are also beginning to stabilise in the two cities.

Experts believe that a pickup in economic activity will cushion the price decline in these two cities, and we could see recovery in the medium and long-term.

GROWING REAL ESTATE SECTOR As economic activity picks up pace, Saudi Arabia’s real estate market is expected to follow suit, with the country’s capital and largest city, Riyadh, steadily growing.

Considering the heightened economic activity in the country, demand for affordable housing is also on the rise.

Another stated goal of Vision 2030 is to increase homeownership among Saudi nationals to 70% over the next MEConstructionNews.com | March 2021

20

March 2021 | MEConstructionNews.com

21

IN PROFILE

John Pagano

“Development and the environment do not have to be at odds.

If you value your natural capital as much as you value your financial capital, then you’re starting off on the right basis” BIG PROJECT ME SPEAKS EXCLUSIVELY TO JOHN PAGANO, THE NEWLY APPOINTED CEO OF AMAALA, AND THE CEO OF THE RED SEA DEVELOPMENT COMPANY, ABOUT HOW SAUDI ARABIA’S GIGA PROJECTS ARE REDEFINING THE PERSPECTIVES OF WHAT THE CONSTRUCTION INDUSTRY IS CAPABLE OF MEConstructionNews.com | March 2021

22

IN PROFILE

arlier this year, the board of directors at AMAALA confirmed that Nicholas Naples, the CEO of the ultraluxury destination, was leaving his post as part of the evolution of the project.

Naples, who had been in charge since 2018, was responsible for developing strategy and overseeing progress for the project, which is located on Saudi Arabia’s north-western coast.

Over the last three years, Naples has overseen significant progress made on the early stages of the project, with the groundwork laid for its three core communities, the design of its dedicated airport revealed, and the first phase construction beginning.

Furthermore, he has helped oversee the formation of an Advisory Board composed of prominent experts from the fields of hospitality, wellness and sports, travel and tourism, arts and culture, construction, sustainability, and luxury, lifestyle, and wellbeing, while also putting in

March 2021 | MEConstructionNews.com

Progress onsite Over the last three years, AMAALA has made significant progress on the early stages of the project.

2023

Scheduled completion date for phase one

place a strong and professional project team to help deliver the project.

However, the developer asserts that Naples was never intended to remain as CEO for the entirety of the project, and that his departure is part of the planned evolution of AMAALA. It adds that he will continue to be involved in the destination’s development as a senior adviser.

Stepping in to replace Naples is a familiar face, with John Pagano, the current CEO of The Red Sea Development Company, taking over.

While he will continue in his role with TRSDC, Pagano has also been tasked with taking AMAALA forward.

With almost 40 years of experience under his belt, Pagano has ample expertise in delivering large-scale, multi-billion-dollar developments to life, including the world-renowned Canary Wharf development in London.

Furthermore, he has spent a large part of his career offering strategic advice and services to landowners, investors, and developers of large-scale real estate developments around the world, equipping him with a vast amount of knowledge and industry knowhow – ideal preparations for the challenges facing him as he takes on his new role.

Having been at the helm of The Red Sea Development Company since 2018, he has personally overseen the development and growth of The Red Sea Project, which has become one of the most well-known and anticipated ‘giga projects’ in Saudi Arabia, with attention on it from across the world.

In combination with his new role, he now has a chance to not only shape the future of these hugely impactful projects, but also redefine the construction landscape as we know it in the GCC and beyond.

Speaking exclusively to Big Project ME from his offices in Riyadh, Pagano states that while leading both organisations and projects will certainly be challenging, he’s confident that the teams and structures that have been put in place will ensure that they will be delivered to a high standard.

IN PROFILE

23

While both projects have their differences, they also have a lot of similarities and synergies between them. By consolidating under one leadership, it allow us to explore those opportunities and create greater efficiencies” “I start from the point of view that both projects have very strong teams. I’ve obviously built the Red Sea team from scratch, and I have the highest confidence in their ability to not need as much attention at this stage, so that I can devote a little bit more time to the AMAALA project.

“The priority for AMAALA will be to go from the planning phase, where they’ve had success in getting three masterplans approved, and move steadily now into the construction phase. They’ve started some enabling works on site – that’s the first phase, which we hope to complete by the end of 2023. Enabling earthworks, the marina, the airport, all of that is under construction. So really, my priority is to build on that momentum and provide the leadership and guidance to what is already a very strong team, and to make sure that they have all the tools necessary to enable them to achieve the scheduled objectives and quality goals that we’ve set up,” he says.

“My experience has been on largescale megaprojects; and I see this as no different. I have the experience of running multiple large-scale projects at the same time, so I think I’ve got the experience and the skillset to manage between the two.

“While both projects have their differences, they also have a lot of similarities and synergies between them. By consolidating under one MEConstructionNews.com | March 2021

24

IN PROFILE

We intend to welcome our first guest to The Red Sea Project by the end of 2022, but our main first phase construction is scheduled for the end of 2023, which overlaps with what we’re intending for AMAALA” March 2021 | MEConstructionNews.com

leadership, it allow us to explore those opportunities and create greater efficiencies between the two projects, leveraging the knowledge gained from one project to the benefit of the other, and vice versa. There are a lot of good reasons why this consolidation is a positive step for both projects,” Pagano explains.

As operations on both projects ramp up, so will the need to increase the workforce, and managing a combined workforce that is already at 1,000 and rising will be no easy task, especially as the pandemic continues to hinder operations.

However, the organisations will continue to scale up as per the needs of the projects, Pagano says, pointing

Explore opportunities By consolidating under one leadership, both projects will be able to explore opportunities and create better efficiencies between them.

1,000

Combined number of staff on both projects

out that their crucial role in fulfilling Vision 2030 makes it essential that they progress as scheduled.

“Our timelines for both projects are similar. We intend to welcome our first guest to The Red Sea Project by the end of 2022, but our main first phase construction is scheduled for the end of 2023, which overlaps with what we’re intending for AMAALA, so there is a lot of pressure on the staff.”

He adds that given the circumstances, safety will continue to be a priority for personnel. Pointing to the lessons learnt on The Red Sea Project during the pandemic, Pagano explains that the focus will be on maintaining the momentum on both projects, while ensuring that not major

IN PROFILE

outbreaks take place on the sites.

One favourable factor is that that both project teams are still working outdoors for the most part – particularly AMAALA, where groundworks, airport site grading, preparations for runways and aprons, and other related projects are underway.

“If the restrictions go on for the whole of 2021, then I think we will face some challenges, because the restriction of movement for people will ultimately cause issues in being able to ramp up staff.

“It is steady-as-it-goes for the moment, and we’re managing, but I don’t anticipate too many problems because I’m optimistic with the rollout of the vaccine, and also because the countries that have had issues are now starting to get on top of it.”

With both projects tracking towards their completion dates, Pagano believes that his role will primarily be about making sure that the teams are organised and coming to the market at the right time.

A large part of this confidence is down to the performance and capabilities of Saudi Arabia’s contracting community, he says, highlighting the industry’ positive contribution to The Red Sea Project, and its more recent efforts on AMAALA.

“The domestic market has responded extraordinarily well.

On the Red Sea Project, we have something to the order of 75% of the contracts awarded to date given to Saudi contractors, with the other 25% obviously being international.

We’re going to leverage the domestic, regional and international market, so as to be able to build these very large-scale projects,” he continues.

“There will be several projects coming up, with many contracts awarded over the coming month, probably in the second half of the year rather than the first half.

The first half of the year is very

Leveraging the market The domestic market has responded well to the challenges set by the giga projects.

75%

Of contracts have been won by KSA firms

25

much focused on enabling works, either marine enabling or landbased work. We’re working very hard on our infrastructure as well, there’s a large-scale pipeline project that’s currently being priced in the market. That maybe awarded in the coming months.”

Pagano reveals that AMAALA is moving into the detailed design phase (AKA schematic design phase) for the first phase of hotels at the destination, with seven planned to open during the first phase.

“I think, later in the year, we’ll start seeing packages related to those specific hotels. The airport landside package is due to go to market imminently, which will represent a significant contract.

We have already awarded the construction worker village contract, which is under construction, while the marina works package has also been awarded. In addition, the marina basin for Triple Bay is under construction,” he outlines.

In total, he predicts that by the end of the year, the total value of contracts awarded at AMAALA will match the $4 billion awarded

by The Red Sea in 2020.

“This is dependent on the approach we take on the infrastructure, but that would be a comparable sort of figure. Both projects are of similar scale, in terms of the first

MEConstructionNews.com | March 2021

26

IN PROFILE

phase, so that would seem like a reasonable target at this stage.”

Shifting focus to the Red Sea Project, Pagano states that the recent announcement about Coral Bloom – the concept for Shurayah Island, the destination’s main hub island – proves just how serious Saudi Arabia is about achieving its targets with these giga projects.

He explains that when the design concept for the island was chosen, it was through an extensive process that involved research and competition, with eight or nine firms vying for the honour of developing the concept.

Not only were these firms tasked with coming up with an inspiring, never before seen design, but they also had to take their inspiration from the surrounding environment and create something that was low impact and sustainable, while still being luxurious.

“If COVID has taught us anything, it is to have a greater appreciation of

March 2021 | MEConstructionNews.com

the world we live in, and the fragile environment around us. We only have one world and planet, and I think that it’s been a bit of a wake-up call to everybody to be more aware of it and to take better care of it. It’s an opportunity to hit the reset button, and that’s what we’re trying to do at The Red Sea Project. Development and the environment do not have to be at odds. You can develop if you take the

Fragile ecosystem Pagano says that every effort is being taken to protect the fragile ecosystems across The Red Sea Project.

In touch with nature The Red Sea Project’s resorts and hotels are being designed to fit into the natural landscape around them.

right steps and approaches, and if you value your natural capital as much as you value your financial capital, then you’re starting off on the right basis.

“Coral Bloom brings all of that to life. It’s a different type of resort experience – there are 11 resorts on the island, but you’re not going to see your traditional large-scale, multistorey hotels. Most of these resorts are one-storey and really nestled into the natural landscape, so you’re in touch with nature. We’ve taken special care with regards to the island, protecting the natural edges, which is where most of the ecology and biodiversity exists – the mangroves, the seagrass, and the coral. We’ve really gone above and beyond to protect that natural edge,” he continues.

“We’ve kept all the assets within the existing landscape, and we’ve created new habitats. In fact, we’re enhancing the mangroves, rather than taking them away, because the mangroves are great

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While this recovery is undoubtedly good news, it also poses the question about what comes next for the construction sector in the Kingdom. The government aims to cement the role of the private sector by prompting private investment in manufacturing, tourism, and renewable energy, which opens the door to the implementation of parallel reforms that will encourage private sector investment.

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IN PROFILE

If COVID has taught us anything, it is to have a greater appreciation of the world we live in. We only have one world and planet, and I think that it’s been a bit of a wake-up call to everybody to be more aware of it and to take better care of it” for sequestering carbon. Meanwhile, we’re building lightweight structures in order to make them more responsive, so that we’ll have more energy efficient buildings. It’s very much about bringing people back in touch with nature. Luxury travellers today are less interested in consumption and are more interested in experiences.”

While Coral Bloom may be the headline project for the destination, it is the work being done behind the scenes that really exemplifies how the developer is challenging the norm, Pagano insists. The entire project (which is the size of Belgium) is set to be 100% powered by renewable energy – something that has never been attempted at this scale anywhere in the world.

“We’re running renewable energy 24-hours a day and we’re setting global firsts,” he says. “We’re building the biggest utility-scale battery storage system in the world at 1,000MWh. There’s been a lot of hype around what Elon Musk did in Australia, where they installed something like 35MWh, which is very small in comparison.

I’m also aware of others that are in the pipelines, at about 750MWh. “However, Red Sea is leading the way and showing that it can be done, but that you just need the will.

Technology exists and you may have to pay a little bit more in order to accomplish it, but what value do we March 2021 | MEConstructionNews.com

IN PROFILE

place on our natural environment?

What value do we place on our children’s future? On being able to enjoy the world that we live in? This is another example of us trying to show the world that you can things in a better way. I think at the end of the day, we’ll be rewarded by the fact that in a post-COVID world, people will be looking for greener, responsible tourism. They’re going to want to go to places that do the right things, and the investment we’re making is going to be rewarded by that,” he asserts.

On a local and regional scale, AMAALA, The Red Sea Project, and others like it in Saudi Arabia are predicted to have a transformational effect on the Kingdom’s construction landscape, with contractors, consultants and suppliers expected to benefit and contribute towards the goals and ambitions of Vision 2030.

Therefore, Pagano urges the industry to seize the opportunities presented to them and to evolve and grow with the developers that are showing the way forward.

“Clearly, this is a great time to be in the construction space,” he says. “We’re probably spending more money than the region as a whole on construction. It’s a great opportunity for them to grow their businesses and further contribute to the local economy, and it’s a great opportunity for others in the region

Transformational impact The giga projects will have a transformational impact on KSA’s construction sector, says John Pagano.

$4bn

Total value of Red Sea Project contracts in 2020

to also participate. We encourage contractors to come and establish themselves in the Kingdom, and to avail themselves of the huge amount of work that’s coming.

“Evolution in construction and technology is driven by the consumers – they drive that evolution by placing demands on industry, who then have to respond to the challenges they’ve been set.

“The view of the giga projects is that we’re going to force the industry to think about the environment and sustainability. By setting the challenge to them and setting the requirement that they’ve got to

29

abide by our vision and take the extra steps, they’ll be forced to innovate and evolve,” he insists.

“We’re forcing the industry to start rethinking how we can construct and minimise our environmental footprint. Certainly, on the Red Sea Project, but elsewhere as well. We’re focusing on offsite manufacturing, on building in a controlled environment, on reducing the number of operatives on site, on being more efficient.

Those are the challenges we’re setting, and I can see the construction industry taking up the charge.

“We’re also forcing them to look at innovative technologies – we want to sequester carbon and use nature-based solutions, as well as technological solutions.

Through a combination of those challenges, the industry is starting to think more about sustainability.

If there are companies that are not up to it, then there will be other participants that will come in and take market share away from them.

“So, I think they’ll be forced to rise to the challenge that we, as consumers, are ultimately going to demand. It’s a matter of survival for them,” he warns in conclusion, an indication of just how serious he, and the rest of the Kingdom is about becoming the region’s standard bearer for construction and development.

MEConstructionNews.com | March 2021

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March 2021 | MEConstructionNews.com

PROJECT PROFILE

31

Coral Bloom PROJECT NAME: Coral Bloom PROJECT DEVELOPER: The Red Sea Development Company LEAD ARCHITECT: Foster + Partners PROJECT LOCATION: Shurayrah Island TOTAL NUMBER OF HOTELS: 11

In Full Bloom

BIG PROJECT ME SPEAKS EXCLUSIVELY TO GERARD EVENDEN, HEAD OF STUDIO, FOSTER + PARTNERS, ABOUT THE RECENTLY ANNOUNCED CORAL BLOOM PROJECT ON THE RED SEA PROJECT’S MAIN HUB, SHURYRAH ISLAND – THE CENTREPIECE OF THE WORLD’S MOST AMBITIOUS REGENERATIVE TOURISM PROJECT MEConstructionNews.com | March 2021

32

PROJECT PROFILE

n February 10, 2021, His Royal Highness Prince Mohammed bin Salman, Crown Prince of Saudi Arabia and Chairman of The Red Sea Development Company (TRSDC), announced the launch of the Coral Bloom concept – a resort development situated on the Red Sea Project’s main hub of Shurayah Island.

Set to be the flagship destination for the world’s most ambitious regenerative tourism project, Coral Bloom has been created by architectural firm Foster + Partners and been designed to blend in with the island’s pristine natural environment. While the concept aims to set the standard in the Kingdom, TRSDC also intends for it to be at the forefront of global architecture and design standards.

Given that the concept calls for 11 hotels – all set to be operated by some of the most prestigious hospitality brands in the world – to be built on the island, this will be no easy task.

March 2021 | MEConstructionNews.com

The materials we use and the low impact they have ensures that the pristine environment is protected, while the additions we make to the island serve to enhance what is already there – hence the name, Coral Bloom” Global leader TRSDC intends for Coral Bloom to set the standard for architecture and design standards in the Kingdom and beyond.

11

Number of hotels planned for the island

Not only will the hotels have to be designed and adapted to the landscape around them, but the developer says that it is imperative that the island’s natural beauty is kept intact.

Although there will be elements of the destination that will have to be enhanced, with new beaches created on the dolphin-shaped island along with a new lagoon; these enhancements will have to be carried out while preserving what already exists and without damaging any habitats or natural shores.

Therefore, Foster + Partners say that biodiversity considerations will take centre stage , with plans designed to avoid disruption to the island’s

mangroves and other habitats that provide natural defences against erosion and rising sea levels. The architecture firm also asserts that the new habitats created will only enhance the island’s natural state.

“Our vision for Shurayrah is inspired by the island’s natural state, with the hotels designed to give the impression that they have washed up on the beaches and nestled among the dunes almost like driftwood. The materials we use and the low impact they have ensures that the pristine environment is protected, while the additions we make to the island serve to enhance what is already there – hence the name,

PROJECT PROFILE

Coral Bloom,” says Gerard Evenden, head of Studio at Foster + Partners.

The Red Sea Project’s masterplan is underpinned by this commitment to sustainable, lowimpact development, he adds.

Although the destination plans to have 50 resorts, consisting of up to 8,000 hotel rooms and 1,300 residential properties, TRSDC maintains that this will be achieved in an ecologically responsible manner.

In order to do this, the developer has conducted an extensive marine spatial planning exercise, while the masterplan leaves 75% of the project’s islands untouched. Shurayrah will be one of only 22 islands selected for development, it points out.

Unique opportunity Coral Bloom offered Foster + Partners the unique opportunity to work with one of the best-preserved coral reefs in the world.

50

Number of resorts across The Red Sea Project

The Red Sea Project is already passing significant construction milestones and work is well on track to welcome the first guests by the end of 2022, when the international airport and the first four hotels will open. The remaining 12 hotels that are planned for phase one are scheduled to open in 2023.

Given the scale of the ambitions, Big Project ME caught up with Gerard Evenden to learn how Foster + Partners will be approaching this monumental challenge of creating an immersive luxury experience on such a large scale while adhering to the high architectural and sustainable design standards laid out by TRSDC. “The Red Sea projects are a unique

33

opportunity to work with one of the best-preserved coral reefs in the world and put the region on the global luxury tourism map,” Evenden says.

“The research being carried out on these coral reefs could help preserve and revive others around the world.

The project is also symbolic of Saudi Arabia opening up to the world, offering an incredible opportunity for both locals and international tourists to experience the exceptional natural beauty of the country.”

“Therefore, our design approach is aligned to the idea of creating a sustainable vision for the future, with the aim of preserving the natural beauty of the region. The entire project is underpinned by a commitment MEConstructionNews.com | March 2021

34

PROJECT PROFILE

to sustainability, focusing squarely on creating a circular economy that produces energy from wholly renewable sources,” he adds.

As part of these plans, TRSDC says that it is committed to delivering a 30% net conservation benefit by 2040. It is creating the world’s largest district cooling plant powered by renewable energy, 24 hours a day, to facilitate efficient centralised

March 2021 | MEConstructionNews.com

cooling across the destination. The entire destination will be powered by renewables underpinned by the largest battery storage system in the world, the developer states.

Furthermore, Evenden explains that the masterplan for Coral Bloom has been designed to reflect local culture and traditions. Leveraged on existing construction methods, the latest pre-fabrication building techniques

Local traditions The masterplan for Coral Bloom has been designed to reflect local culture and traditions.

and cutting-edge environmental technologies are being used so as to minimize the impact on the fragile ecosystems across the destination.

“The vision for the Shurayrah Island project has been based on three main tenets – creating an exquisite luxury destination around one of the world’s hidden natural treasures, setting new standards in sustainable development and positioning Saudi Arabia on the

PROJECT PROFILE

global tourism map,” he continues.

“A key part of the brief was to develop a coherent and consistent approach to the design of the island and its constituent parts. Coral reefs, by their nature, are made of several different elements but they come together to read as a singular entity. This was the inspiration for our masterplan where each of the resorts offers a different experience

and appeals to a varied audience, but the entire island embodies a collective identity as Coral Bloom.”

Evenden says that a key decision about the design came in the wake of the team’s first site visit, which was when they realised the importance of the island’s edges in terms of biodiversity. Meanwhile the middle of the island was relatively barren, meaning that there was more scope

22

Islands have been chosen for development

35

for them to work with in that area.

This led them to design a lagoon that creates new beaches towards the island’s middle, leaving the existing beaches on the island’s perimeter relatively untouched.

“We also wanted to produce a scheme that could offer a variety of experiences so that guests can continue to visit the island through different life stages – from exclusive

MEConstructionNews.com | March 2021

36

PROJECT PROFILE

Our vision for Shurayrah is inspired by the island’s natural state, with the hotels designed to give the impression that they have washed up on the beaches and nestled among the dunes almost like driftwood” March 2021 | MEConstructionNews.com

retreats to large family holidays.”

“The proposals are respectful of the extreme environmental sensitivity of the region, taking a ‘light-touch’ approach that will have the least detrimental impact on the wonderful biodiversity of the island. Using offsite manufacturing, the project seeks to maximise its sustainable credentials by reducing construction timeframes and waste while ensuring the highest levels of quality,” he continues, pointing out that the palette of materials is inspired by nature and will be low-impact.

“The design responds to the local palette of colours – the pale hues of the sand, the dense vegetation and the spectacular shades of the sea.

“Each resort is carefully curated

A light touch The hotels on Shurayrah Isand have been designed with a ‘light touch’ approach to ensure minimal impact on the environment.

100%

The entire project will be powered by renewable energy

to be a unique place, while neatly fitting in with the larger sustainable vision for the islands.”

He adds that the project will investigate appropriate construction technologies that will carry out most of the disruptive construction work off-site using sustainable materials and processes.

Evenden states that Foster + Partners will be working closely with TRSDC on the complete coordination of the project to ensure smooth delivery. He also reveals that the firm is looking into the logistics for the delivery of finished buildings on site.

“The construction work will largely take place offsite, while reducing waste materials and the carbon content of the buildings. We are looking to source local

PROJECT PROFILE

building materials, as far as possible, and investigating the possibility of setting up temporary factories for assembling the buildings close to the site. The idea is to reduce the amount of equipment that will need to be taken on site through innovative design and construction practices,” he explains.

Of course, the impact of the COVID-19 pandemic has hit the tourism industry hard and although The Red Sea Project isn’t operational, Evenden says that the design and planning for Coral Bloom had to take into account how the pandemic would change the future of hospitality.

“We are working closely with TRSDC and all potential hotel operators to address the challenges that the current pandemic poses for the future of hospitality. The Coral Bloom project offers an exciting opportunity for us to incorporate new ideas and create innovative models for the holiday resorts of the future,” he says, explaining that there will be no internal corridors, for example, as a response to a growing demand for space and seclusion following the pandemic.

Coral Bloom is just one of several projects that Foster + Partners is working on in the region. These include the Red Sea Airport as well as the luxury developments of Southern Dunes – located in the mountainous regions inland and Omaha Al Sheikh – another exclusive island resort along the Red

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We hope the Coral Bloom project will enable Saudi Arabia to develop a tourism industry that is sensitive to the flora and fauna of the region and create a new model for sustainable tourism” Regenerative effect Evenden says that Coral Bloom aims to have a regenerative effect on the natural habitat around it, with more mangroves and coral reefs created.

12

Hotels have been planned for phase one

Sea Coast. These projects take their inspiration from the natural world – in the case of Coral Bloom, from the sea and the land – and Evenden says that everything from the larger masterplan, through to the materials used on site, have been inspired by the nature that surrounds them and a desire to have a positive impact on it.

“We hope the Coral Bloom project will enable Saudi Arabia to develop a tourism industry that is sensitive to the flora and fauna of the region and create a new model for sustainable tourism. The project also aims to have a regenerative effect on the natural habitat, creating more

mangroves and coral reefs. It will be a truly spectacular place that will firmly occupy a spot on the list of global luxury tourism destinations.

“Similarly, the design of the airport terminal has been informed by the soft, flowing forms of the surrounding desert. The five terminal pods resemble sand dunes in the landscape with the colours and textures of the roof reflecting the desert landscape. The themes of the desert with its oasis and wadi are carried though in the design of the interiors and arrival garden.

The landscaping has been influenced

by Arabian landscapes with a local selection of plants,” he concludes.

MEConstructionNews.com | March 2021

38

COMMENT

Industry insight

SAHEM AZZAM ORANGE BUSINESS SERVICES

The importance of asset management in the Middle East

S

mart city projects are booming across Middle East and Africa, from Saudi Arabia’s $500 billion ‘Neom’ to Kuwait’s $4 billion ecofriendly Saad Al-Abdullah city, along with smart city ideas and initiatives. Smart cities have boomed along with the rise of IoT. According to the GSMA, IoT revenues in MEA will reach $55 billion by 2025, while IoT will also grow MEA’s GDP by $18 billion by 2025.

Building smart cities requires a lot of valuable construction equipment, from diggers to earth movers, dump trucks and other heavy construction equipment typically found on construction sites. IoT has become increasingly important in helping improve efficiency and reduce theft by tracking location, performance and other operational metrics in real time.

Asset management in construction companies has traditionally been a manual process, which has been hard to track, because assets tend to move around from site to site as needed. This meant that information on an asset’s location or condition could become quickly outdated before it got back to the central office.

The net result of this was that not having access to timely, accurate data about the condition of assets meant inefficient use and consequently higher operating costs.

By equipping construction assets with IoT-connected sensors, companies are able to use digital asset tracking to monitor the location, movement and performance of their physical assets. By collecting data from these now-connected assets, companies can

March 2021 | MEConstructionNews.com

build a consolidated system for monitoring, tracking and analytics in asset management.

Operational efficiency is increased by being able to quickly pinpoint the location and nature of a fault in a connected system, for example. Efficiency and productivity are improved by being able to check inventory of devices without manually monitoring them on the construction site.

In addition to tracking asset location, predictive maintenance is one of the key use cases for IoT-enabled asset management.

According to a PWC report, predictive maintenance in construction companies could reduce costs by 12%, improve uptime by 9%, reduce safety, health, environment and quality risks by 14% and extend the lifetime of an asset by up to 20%. Historically, predictive maintenance has been impeded by poor asset location visibility and inefficient maintenance record keeping. IoT asset management, with its real-time equipment and vehicle tracking, overcomes that issue. If a construction company has assets deployed at multiple sites, it can instantly know the location of all assets, how they are being used and their maintenance status, improving efficiency, reducing repair costs and extending equipment life.

Enterprises in can also benefit from an asset management strategy, so they can develop, operate, maintain, upgrade and dispose of assets cost effectively. Asset management can give a holistic view of an asset’s entire lifecycle, from procurement and implementation through to renewal and disposal. General benefits include a faster return on investment, the ability to measure improvements in operational efficiency, lower costs and better risk management: all of which are typically popular for enterprises.

IoT asset tracking can help companies throughout MEA manage assets much more efficiently. By having better visibility of asset location and condition, in real-time, companies can remove the time presently wasted searching for assets –tools, vehicles or equipment – and reduce equipment downtime through data and improved planning. You are then able to maximise employee and equipment efficiency and optimize any underutilized assets. And of course, it helps you track your assets and reduce the threat of theft of valuable equipment.

Sahem Azzam is Vice President - Middle East, Africa and Turkey, Orange Business Services.

PROF DR TADHG O’DONOVAN

HERIOT-WATT UNIVERSITY DUBAI

Why robots are a game changer for construction

I

t is widely acknowledged that the use of robots increases productivity and has the potential to disrupt the construction industry. And while manual labor will likely always be an important part of modern construction, the benefits stemming from the use of robots are undeniable.

Studies indicate that the global market for construction robotics estimated at $87.4 Million in the year 2020, is projected to reach a revised size of $252.5 Million by 2027, growing at a CAGR of 16.4% over the analysis period 2020-2027.

The most popular application today is for on-site production robots. These are robots that can lay bricks, weld metal components, apply adhesives, and assemble doors and windows.

The most well-known is probably Hadrian X®, the world’s first mobile robotic block laying machine and system, capable of building the walls of a house in as little as a day. In the area of prefabrication, construction robots are now being used to make parts for prefabricated buildings.

For construction professionals of the future, now may be a good time to invest in the skills that will be needed to navigate this revolution in the industry”

COMMENT

AUTONOMOUS VEHICLES From diggers to bulldozers, there are several building site vehicles that can be automated.

Today we even have machinery that can move construction debris without human intervention.

Inspection robots such as drones using sensors can provide vital information about construction progress. Coupled with the use of AI, these robots can predict what tasks are required as well as spot potential issues.

Finally, in the area of health and safety, robots are a welcome addition to the construction industry. This industry is physically demanding, and strain from repetitive lifting of heavy weights is a common cause of building site injuries.

And this is where exoskeletons could help.

Exoskeleton robots are a unique form of professional service robots that mimic, augment or enhance the construction worker’s movements. They provide essential support that allow for increased strength and endurance.

For construction professionals of the future, now may be a good time to invest in the skills that will be needed to navigate this revolution in the industry. A report by the World Economic Forum predicts that we will need to reskill more than 1 billion people by 2030, and automation and machine learning will be at the heart of these changes.

While this could vastly improve productivity and efficiency, workers not in possession of the right skills are at risk of being left behind.

That is why degree programs such as HeriotWatt University’s multi-disciplined BEng in Robotics, Autonomous and Interactive Systems are so important to the future of the construction industry. These courses bring together disparate fields such as electronics, computer software, and mechanics. They are designed to be practical and allow students to develop skills beyond the traditional academic content.

Additionally, Heriot-Watt’s new Dubai campus features a robotarium, which is a state-of-the-art facility for robotics and artificial intelligence; it will support students as they develop, design, and interact with robotics and autonomous systems. These are vital skills for the engineers of the future, and it is imperative that they are taught, if we want the construction industry to advance further.

Prof Dr Tadhg O’Donovan is Head of the School of Engineering and Physical Sciences, Heriot-Watt University Dubai.

ANDREW ROBERTSON MOBILE MINI

Why we need construction offices in 2021

A

cross the UK, construction workers have been impacted by social distancing regulations which have disrupted normal work since the first national lockdown. The impact was demonstrated by the greatest fall in output since records began in January 2010.

Since then, construction work has continued despite consequent lockdowns in England and Scotland. But while some workers are required to visit the site to complete work, other key roles in the sector can work remotely. Such roles include engineers, surveyors, and architects.

The vaccine drive has created optimism that the pandemic is nearing an end, but some industry leaders worry that remote working is here to stay. This could prevent the construction sector from recovering and growing. The sector needs construction offices, with all workers returning to the site as soon as it is safe to do so.

According to one employee experience index, 49 per cent of people working in UK construction and engineering had no experience of working from home before the pandemic.

While the construction industry evaded the compulsory closing of non-essential businesses during the second and third national lockdown in England, social distancing regulations and expectations of who can work on-site remain. The guidance prioritises those who cannot work from home. In construction and engineering, this may be limited to labourers and infrequent visits from engineers when on-site reviews must be completed.

Despite the vaccine rollout, experts agree that social distancing will continue for the majority of 2021. However, as construction

39

workers continue to return to sites, these regulations must be adhered to. Therefore, additional working space is essential.

Site managers may look for a storage container for sale to create a portable and easy shelter for workers. As an office, the space is versatile, allowing engineers to review plans and make appropriate amendments in the vicinity of the construction work. Office spaces are valuable for collaboration, and with a variety of roles on construction, office space is central in curating innovative decisions which can help improve the quality of work, regulate safety on site, and help reduce costs.

Working from home prevents this collaborative effort. While objectives such as CAD and steel detailing may be compatible with remote working, doing this in isolation prevents co-workers and other departments from contributing to the planning stage.

There is a consensus among construction workers that normal working circumstances should return as soon as possible to help the sector recover. The Office for National Statistics states that while construction output has achieved a seventh consecutive month of growth and has finally recovered to meet pre-pandemic levels, aspects of the sector such as new work still 3.1 per cent below output in February 2020. This represents £282 million of output in the sector.

Continuing into 2021, a clear majority of construction businesses do not intend to maintain remote working capabilities. According to the ONS, only 5.5 per cent of construction businesses want a permanent increase of home working, as opposed to 83.5 who do not want remote working to increase after the pandemic.

11 per cent of businesses were not sure.

While the construction sector makes it clear that remote working should be avoided in the future, only one in five businesses show any real desire to increase these capabilities.

While all industries have taken a hit during the past year, confidence in construction is at risk of not returning to its full potential unless appropriate action is taken. Resuming normal working conditions is essential and doing this while adhering to social distancing and health guidelines is important. Accommodating as many workers as possible back into construction sites and offices may be the saving factor for the sector.

Andrew Robertson is a copywriter working with Mobile Mini.

MEConstructionNews.com | March 2021

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Middle East tenders UAE INFRASTRUCTURE

Shakhbout City 11KV Primary Substation TERRITORY Shakhbout, UAE BUDGET $22 million CLIENT Abu Dhabi Distribution Company (ADDC) DESCRIPTION The project’s scope of work involves the construction of 11kV load transfer to the existing 33/11 KV primaries to the new 132/11kV primary substation located in Shakhbout City, Eastern Region, Abu Dhabi.

COMPLETION 30/08/22

SAUDI ARABIA ENERGY

TERRITORY Saad, Saudi Arabia BUDGET $410 million CLIENT Renewable Energy Project Development Office DESCRIPTION The project’s scope of work involves the construction of 300 megawatts photovoltaic solar plant located at Saad, Saudi Arabia.

The project also includes two solar power plants, installation of solar panels & transformers and laying of transmission lines.

COMPLETION 30/12/23

RECREATIONAL

Warsan Roof Top Gathering Lounge TERRITORY Warsan, UAE BUDGET $8 million CLIENT Dubai Electricity & Water Authority DESCRIPTION The project’s scope of work involves the construction of a roof top gathering lounge and associated works located at TP Warsan Complex, Dubai. The is part of DEWA Administration Building.

COMPLETION 30/06/21

2) Jeddah Solar Photovoltaic Plant

of work involves the dualization and upgrade of the border road between Dubai and Sharjah located in Industrial Area, Dubai.

COMPLETION 31/03/24

Renewable Energy Program (Round 3) Saad 300 MW Solar Plant

TRANSPORT

North South Rail Waad Shimal - Ras Al Khair - Jubail Signalling & Telecom

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Works (S&T 110) TERRITORY Jubail, Saudi Arabia BUDGET $35 million CLIENT Saudi Railway Company (SAR) DESCRIPTION The project’s scope of work involves the signaling and telecom works (S&T 110) located at Jubail, Eastern Province, Saudi Arabia. The project also includes installation of 85km signaling and telecommunication lines , installation of security systems, laying of fiber optic cable, control tower , electrical works and associated facilities.

COMPLETION 30/08/22 ENERGY

Renewable Energy Program (Round

TERRITORY Jeddah, Saudi Arabia BUDGET $1.85 billion CLIENT Renewable Energy Project Development Office DESCRIPTION The project’s scope of work involves the construction of 300 megawatts (MW) solar photovoltaic independent power plant (IPP) located approximately 50 kilometers south-east of Jeddah, Makkah Province, Saudi Arabia. The project is part of 1.5 gigawatts (GW) second round of Renewables Programme.

The project also includes installation of the solar system, installation of transformers, laying of transmission lines and associated facilities.

COMPLETION 31/12/23

OMAN INFRASTRUCTURE

Samail Industrial Area Water Distribution Network TERRITORY Dakhilyah, Oman BUDGET $72 million

INFRASTRUCTURE

Dubai & Sharjah Border Road Dualization & Upgrade TERRITORY Sharjah, UAE BUDGET $15 million CLIENT UAE Ministry of Public Works (Ministry of Infrastructure Development) DESCRIPTION The project’s scope MEConstructionNews.com | March 2021

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TENDERS

CLIENT Oman Public Authority for Electricity & Water (The Public Authority for Water) DESCRIPTION The project’s scope of work involves the construction of a water distribution network located at Samail, Dakhilyah, Oman. The project includes the construction of water transmission lines, pumps and pipelines.

COMPLETION 30/04/22 INDUSTRIAL

Food Complex for Oman Sugar Refinery Company TERRITORY Sohar, Oman BUDGET $550 million CLIENT Oman Sugar Refinery Company DESCRIPTION The project’s scope of work consists of a food complex located at Sohar, Oman. The project also includes 1 million tonnes per annum (MTPA) sugar complex, 360 million tonnes per annum (MTPA) oil complex, 0.3 million tonnes per annum (MTPA) flour complex, the wheat complex and a captive power station.

COMPLETION 30/08/23

AVIATION

institutional building, hotel service stations, an electrical distribution system, pad-mounted switchgear, frequency converters, storage of power cable spools, pavement, roadways and associated facilities.

COMPLETION 30/10/24

Muscat International Airport Southern Runway & Taxiway Upgradation TERRITORY Muscat, Oman BUDGET $50 million CLIENT Oman Ministry of Transport & Communications DESCRIPTION The project’s scope of work involves the refurbishment and upgradation of an existing runway, taxiway, construction of airside roads and fence, landside roads, airfield ground lighting system, utilities (Ducts / LV / IT networks) and associated work at Muscat international airport in Oman.

COMPLETION 30/12/24

BAHRAIN OIL & GAS

Bahrain Two New Well Manifold TERRITORY Bahrain BUDGET $50 million CLIENT Tatweer Petroleum DESCRIPTION The project’s scope of work involves the installation

INFRASTRUCTURE

of two new well manifolds, laying of inter connecting pipelines, instrumentation works, mechanical works, electrical works and associated facilities in Bahrain.

COMPLETION 30/12/23 INFRASTRUCTURE

Bahrain P964 Shore to Ship Utilities TERRITORY Manama, Bahrain BUDGET $70 million CLIENT U.S. Army Corps of Engineers DESCRIPTION The project’s scope of work involves the construction of a P964 Shore to the Ship utility project in Naval Support Activity, Manama, Bahrain. The scope includes commercial and

South Bahrain Loop Road Development (Phase 1) TERRITORY South Bahrain BUDGET $10 million CLIENT Bahrain Ministry of Works, Municipalities Affairs & Urban Planning DESCRIPTION The project’s scope of work involves the construction of Phase 1 of the Loop Road Development in South Bahrain, Bahrain. The scope includes construction of approximately 9.5km of two lanes single 7.5m wide carriageway, 2m wide hard shoulder at the west, and 1.0m hard strip at the east side, earthworks, asphalt paving, installation of kerbs, fencing works, stormwater drainage works, road marking & signs, street lighting and associated facilities.

COMPLETION 30/12/23

QATAR HEALTHCARE

Al Wakra New Mental Health & Psychiatry Hospital TERRITORY Al Wakra, Qatar BUDGET $165 million CLIENT Hamad Medical Corporation (HMC) DESCRIPTION The project’s scope of work consist of a mental health and psychiatry hospital building located at Al Wakra, Qatar. The project also includes 160-bed hospital expandable upto 208-bed capacity, 30,000 square meters accommodation over three levels, 45,000 square meters gardens over three levels, 6,000 square meters March 2021 | MEConstructionNews.com

TENDERS

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recreational space, 750 capacity car parking spaces in basement.

COMPLETION 30/12/23 INFRASTRUCTURE

Bu Sidra & Fereej Al Manaseer Road works TERRITORY Bu Sidra and Fereej Al Manaseer, Qatar BUDGET $80 million CLIENT Public Works Authority (ASHGHAL) DESCRIPTION The project’s scope of work involves the construction of road and infrastructure works, Telecom ducts, stormwater drainage, interim roads, pathways and pavements, electrical and power systems and associated facilities in Bu Sidra and Fereej Al Manaseer areas of Qatar.

COMPLETION 30/12/23 COMMERCIAL

Commercial Building for Al Sharq Newspaper TERRITORY Lusail, Qatar BUDGET $45 million CLIENT Al Sharq Newspaper (Dar Al-Sharq Group) DESCRIPTION The project’s scope of work involves the construction of a 15,507m2 headquarter building with 2 basement, ground, mezzanine and 3 floors for commercial, parking facilities and associated facilities at Energy City, Lusail, Qatar.

COMPLETION 30/10/23

KUWAIT OIL & GAS

South East Kuwait KERP Bio Remediation Zone 3 TERRITORY South East Kuwait BUDGET $180 million CLIENT Kuwait Oil Company (KOC) DESCRIPTION The project’s scope of work involves the bio-remediation

of oil extraction located at South East Kuwait, Kuwait. The project includes 3 million m3 tonnes of contaminated soil, soil remediation, clearance of unexploded ordnance prior to remediation of oil lakes, contaminated piles, oil spills and trenches, landfills , reducing TPH concentrations, expansion of an existing landfill facility for Hydrocarbon Contaminated Soil, remediation & excavation works of all wet oil lakes (WOL), dry oil lakes (DOLs) and oil contaminated piles (OCPs), coastal deposits, wellhead pits, coastal trench, tartrate, backfilling works, enabling works, treatment platform areas and facilities, fencing, water supply, treatment and power network, preparation of treatment areas, material stockpiles/holding areas, new roads and gatch roads, excavation of oil-contaminated soil, mixing of the contaminated soil from piles and dry oil lakes with the liquid sludge in wet oil lakes to allow easier handling of wet oil lake contents, soil treatment using bioremediation, sampling and analysis to monitor

treatment progress, staging and disposal of other excavated materials, recovery and handling of liquids from excavation, treated soil placement, site restoration, construction of disposal facilities, weighbridge, storage facilities and groundwater works.

COMPLETION 30/05/24

cables for feeding the 3 main 132/11 kilovolts transformation substations located at District N6, Al Mutlaa City, Kuwait. The project includes the installation of pilot cables, conductors, armour wires and sheath voltage limiters.

COMPLETION 30/12/23

INFRASTRUCTURE

Kuwait Airport Expansion New Passenger Terminal 2 Airside Work

AVIATION

Al Mutlaa City 132kV Ground Cables Extension (N6) TERRITORY Al Mutlaa City, Kuwait BUDGET $32 million CLIENT Public Authority for Housing Welfare (PAHW) DESCRIPTION The project’s scope of work involves the extension and maintenance of ground

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

COMPLETION 30/12/23

MEConstructionNews.com | March 2021

44

PROGRESS REPORT

Final update

Jack Nicklaus to design golf course in Qiddiya Championship course is for a private golf and country club, set within an exclusive residential community in the heart of Qiddiya

D

ecorated golfer and course designer Jack Nicklaus has confirmed that he is designing his first golf course in Saudi Arabia.

The championship course will take shape in Qiddiya, Saudi Arabia’s new capital of entertainments, sports, and the arts.

According to a statement, the course is located 40 minutes

March 2021 | MEConstructionNews.com

from the Saudi capital of Riyadh and is under design and awaiting commencement of construction.

Nicklaus Design is creating the championship course for a private golf and country club, set within an exclusive residential community in the heart of the Qiddiya development, just outside Riyadh, with ground expected to be broken later this year. The golf course will be framed by the Tuwaiq mountain range, a statement said.

Construction of Qiddiya began in 2019; the golf development will include a high-end resort hotel and spa, as well as exclusive residences.

It will be constructed to the highest standards, with a view to hosting the most prestigious international championships in future years, challenging elite golfers while providing casual players with an opportunity to enjoy the sport and develop their skills.

On course The golf course is under design and is currently awaiting the commencement of construction.

40 The course

is located 40 minutes from Riyadh

Nicklaus commented, “I am excited by this project and my first golf course design in the Middle East.

To be selected as one of the first international designers to work in the Kingdom is a great honour. I’ve already spent time looking at the topography of the land, images of the backdrop and terrain, and discussing with our design team a strategy for the course.

“The design will fully integrate the natural environment and the beautiful Qiddiya landscape, bringing together green spaces and mountainous terrain to form a picturesque canvas for both a beautiful and challenging golf course.”

The planning of the course has been undertaken by Qiddiya in consultation with Golf Saudi. The Nicklaus-designed course is said to be the centrepiece of what has been positioned as the most exclusive golf residential community in the Kingdom.

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