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190 March 2022
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THE BUSINESS OF CONSTRUCTION
Time for Change
BIG PROJECT ME SPEAKS TO SUSY ARYANI SINGGIH, OF LOOTAH HOLDING, ABOUT REVAMPING CULTURES, MINDSETS AND ATTITUDES ACROSS THE GROUP
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CONTENTS
March 2022
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16
18
22
28
40
ANALYSIS
FEATURES
INSIGHT
08
The briefing
22
36
Event Review
The big picture
Big Project ME speaks to Susy Aryani Singgih, about how she’s reforming Lootah Holding’s company culture and shifting mindsets within the organisation
38
Event Review
40
Progress report
HKA tackles the gender pay gap in the industry, while Heriot-Watt University Dubai looks at the future of the energy sector
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Providing a wrap-up of the biggest local, regional and international construction news stories
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Market report
18
Analysis
Savills finds that Dubai’s residential market is amongst the best performing in the world
In Profile Susy Aryani Singgih
28
Site Visit LINQ Modular factory tour
Big Project ME is taken around LINQ Mondular’s facility in Dubai Industrial City, where the region’s first high-quality modular homes are being developed.
Big Project ME recaps the events of the Construction Digital Twins Webinar, which was held online on February 16, 2022
Big Project ME, recaps the events of the annual Big Project ME Golf Day 2022
Azizi Developments reaches 30% construction on Park Avenue projects in MBR City
Dr Fadi Bayoud of Strategic Anchors outlines what construction firms need to do if they want to be part of Dubai’s 2040 plans
MEConstructionNews.com | March 2022
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WELCOME
Introduction
Change is on the way
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few days ago, Deloitte released its 2022 engineering and construction industry outlook, which was an interesting read as always, but there were two trends highlighted that I found particularly interesting, given our main features this month. The first trend highlighted is about how connected construction will help the industry unlock new value streams, with emerging technologies, data and advanced analytics set to be at the heart of the industry’s digital transformation, which will see construction operations connected, integrated and automated, securing and solidifying the entire value chain. This is something LINQ’s Gwyn Taylor highlighted during our tour of the modular homes manufacturer’s facility, where he outlined how the company’s utilisation and intersection of various technologies is helping them deliver the region’s first high-quality, fully modular homes. Built and designed using digital construction technology, these homes are also highly sustainable and efficient, thanks to the manner in which they’ve been delivered.
March 2022 | MEConstructionNews.com
Given the demand for housing in the region only seems to be going one way, the introduction of modular housing presents an interesting option for investors and homeowners. The second trend highlighted by Deloitte was about firms continuing to grapple with labour shortages as the workforce landscape evolves. To me, there is one simple answer to address the shortage – improve gender diversity. For too long has construction remained a boys’ club. Given how rapidly the construction and real estate industries need to evolve, the need for different skillsets, abilities, knowledge and mindsets is going to be crucial in the coming years. It makes no sense to ignore a talent pool that is readily available and willing to work. This is something that Susy Aryani Singgih at Lootah Holding is fighting to change. It was fascinating listening to her share her vision for the group, and how inclusive and diverse she wants it to be as it moves forward with its plans. I can only hope more companies in our industry follow Lootah’s lead.
Gavin Davids
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THE BUSINESS OF CONSTRUCTION
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Time for Change
BIG PROJECT ME SPEAKS TO SUSY ARYANI SINGGIH, OF LOOTAH HOLDING, ABOUT REVAMPING CULTURES, MINDSETS AND ATTITUDES ACROSS THE GROUP ON THE COVER
Big Project ME speaks to Susy Aryani Singgih, Group COO and Group general counsel of Lootah Holding, about her role in reshaping the group’s culture as it evolves to meet new realities MEConstructionNews.com @meconstructionn MEConstructionNews me-construction-news
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READERS’ COMMENTS
CONSTRUCTION
ALDAR AWARDED $2.3BN
30% of construction works across key projects complete says Azizi Developments
WORTH OF CONTRACTS IN 2021
Really interesting couple of weeks of news from Aldar. Securing the funding from Apollo Group Management, nearly $1.5 billion in total, should be a significant influx of cash. The $500
CONSTRUCTION
million to be dropped into
ADNOC and Borealis break ground on $6.2bn polyolefin expansion project
a land joint-venture should allow the Abu Dhabi firm to kick-start a significant phase of development around the UAE capital (no pun intended) which
ANALYSIS: Dubai market review and forecast
is bound to be a boost for the construction sector.
CONSTRUCTION
Stating the obvious here,
ALEC appoints new digitalisation head to steer construction company’s technology charge
but we need developers to keep on developing now that we are looking beyond Expo 2020 Dubai event. You only have to look at the Aldar financial reports that released at the same time this month to see the difference it
CONSULTANT
can make. 16 contracts
IDC and Naseej begin construction of Nadeen School Dilmunia in Bahrain
totalling $2.3 billion is a huge sum but the fact that 14 UAE-based firms were appointed means a raft of opportunities at the Subcontracting level. This is a top-down industry and the money needs to keep
MACHINERY
NMDC and Daewoo Engineering & Construction sign MoU to grow regional business opportunities March 2022 | MEConstructionNews.com
flowing if we are all going to grow in the market.
INSIGHT: Solitaire Riyadh – Giving retail a new face
Name withheld by request
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THE BRIEFING
Diversity
Overcoming Pay Disparities based on Ethnicity MIDDLE EAST
Nurul Sabri, a senior consultant at HKA, discusses the gender pay gap in the industry, and how ethnic minorities often face greater challenges when seeking parity March 2022 | MEConstructionNews.com
T
here have been many discussions about gender diversity and equality in the construction industry as well as gender pay gap. For women working in the industry especially ethnic minority women, the challenges are even more acute. Not only is there a gender pay gap affecting women but in addition, ethnic minority women in the region are also subjected to alternate pay
structures based on ethnicity or race. The topic of pay disparity by ethnicity is not uncommon in the UK and US and has been widely discussed. It represents the unfair divergence between the pay of different groups of people by demographic characteristics. In my opinion, addressing not only the gender pay disparity, but also the ethnicity pay disparity, is key to fostering an equal and inclusive working environment.
THE BRIEFING
A critical first step to achieving meaningful change is for the industry as a whole to acknowledge the issue exists. Simply put, we cannot address an issue if we refuse to accept it exists. Next is to change mind-sets and behaviour. McKinsey research in Model for Effective Change Management states that transformations stand the best chance of success when they focus on four key actions to change mind-sets and behaviour. By understanding why or the reason for a change will inspires people to behave in support of such change. There are few suggestions on actions that we can focus on to bring meaningful changes, which is divided into four key areas: Educate, Lead, Culture and Measure. 1. EDUCATE
• Eliminate Bias It is said that pay discrimination often is rooted in different forms of bias, including biases about specific ethnicity and their value. Combating biases is critical to getting this right. McKinsey said biases can lead to blind spots, making people to overlook the individual abilities. Employees should be paid what they are worth. Value should not be determined by skin colour nor gender, but from an employee’s dynamism, skills, and knowledge. Continuous anti-bias training is also critical to combat workplace biases that devalue the contributions of specific ethnicity. To move in a new direction, the change must be led from the top. Senior leadership must challenge biase when they see it and advocate and revise company policies to promote equality in pay practices within workplaces. • Public Awareness We should create public awareness that differentiating employees’ pay within the same grade on the basis of ethnicity is wrong, unfair, discriminatory, and considered unethical. The aim is to attract people’s attention towards this subject, which might lead to small talks amongst them. Hopefully this small talk could lead an interest
Speak up Nurul Sabri says that employees need to speak up and have difficult conversations if they want to create a better work environment for themselves.
2022
The new UAE Labour Law came into effect on 2 February 2022
towards this subject and make people interested to do an in-depth study about this and take necessary action. 2. LEAD
• Be an ally and consistently taking key allyship actions Being an ally (allyship) allows those who are at lower risk of discrimination the opportunity to advocate for the underprivileged colleagues to gain visibility, validity, and credibility for their work and contributions. Allyship from senior leaders and more privileged colleagues can make a big difference. However, being an ally alone is not enough. The ally should consistently take key allyship actions such as advocate for equal payment structures for all and actively confront discrimination against underprivileged colleagues. • Regulate legislation prohibiting discrimination based on ethnicity Passing law is an important step towards the change. In the UK and the US, there are laws providing protection
9
against pay discrimination due to race, colour, religion, sex or national origin. The new UAE Labour Law which will take effect on 2 February 2022 expands on general prohibition on discrimination and prohibits discrimination on the basis of race, colour, sex, religion, national origin, social origin and disability. Such law is good to support and promote equality and inclusiveness at workplace. 3. CULTURE
• Speaking up and Having Difficult Conversations Too often employees stay in situations where they are being undervalued for fear of not finding another opportunity, or fear of ruining the relationships with the bosses and leaders that they have internally. In order to overcome this, one needs to speak up and start to be comfortable in having difficult conversations. Difficult conversations are a necessary part of working well with others. Reaching an understanding is often the first step toward creating a better work environment. 4. MEASURE
• Employee Engagement Survey It is important for companies to consistently measure the fairness of its pay policy. For example, my company, HKA, carry out an annual Employee Engagement Survey that helps the company to understand, amongst other things, employee’s views on the fairness of pay scales and its process of calculating pay. The survey seeks to understand whether (i) the effort, skill and experience are accurately reflecting in the employee’s pay and (ii) the process of calculating pay in the company is fair and unbiased. Such survey results are vital to help companies continuously improve in this aspect. There is no doubt that narrowing or overcoming the pay disparity based on ethnicity will not be an easy process. But neither is it a defence against action. It will require the commitment of all levels and a strong collaborative approach. We are all accountable. Let’s overcome this pay disparity based on ethnicity together. MEConstructionNews.com | March 2022
10
THE BRIEFING
The Future of Infrastructure MIDDLE EAST
Dr Hassam Chaudhry, director of Studies for Architectural Engineering at the School of Energy, Geoscience, Infrastructure and Society at Heriot-Watt University Dubai, looks at the future of the energy sector and the role integrated renewable energy will play
March 2022 | MEConstructionNews.com
T
he energy supply sector (electricity, heat/cold, and other energy) is one of the largest contributors to global greenhouse gas emissions, responsible for approximately 35% of total emissions. Households consume 29% of global energy and contribute to 21% of resultant carbon dioxide emissions. In January 2017, the UAE launched the “Energy Strategy 2050”, a national energy strategy based on supply and demand. The strategy aims to improve the contribution of clean energy in the total energy mix from 25% to 50% by 2050 and cut the carbon footprint of power generation by 70%. While the energy sector has historically been moving slowly towards incorporating strategies and products that reduce its harmful impacts, it is now looking to change its course.
In the UAE, there has been a massive growth in urbanisation. Despite the COVID-19 pandemic and the delay by one year of EXPO 2020 Dubai, urbanisation, and development have continued to rise at a rapid rate. Research indicates that buildings consume 80% of the overall energy demand in the UAE and 40% across the globe. Moreover, the UAE’s Federal Electricity & Water Authority (FEWA) estimates that around 60% to 70% of energy demand in the UAE currently stems from building HVAC requirements. Furthermore, the infrastructure in the UAE is estimated to grow at a compound annual growth rate (CAGR) of approximately 5% by 2026. Globally, according to the World Economic Forum (WEF), a transition of energy, materials, and infrastructure is necessary for the next two decades to keep global temperature increases below 1.5 degrees
THE BRIEFING
while ensuring the energy future is affordable, secure, and inclusive. The study also states that recent trends and technologies are changing energy production, delivery, and consumption. In parallel, world demand for raw materials could double by 2060. Getting on track to net-zero emissions by 2050 will require annual investment in clean energy infrastructure to reach nearly US$4 trillion by 2030. One solution that might keep costs lower is integrated renewable energy. INTEGRATED RENEWABLE ENERGY
While there is still a long way to go, the industry has researched major changes and building technologies to address the challenge. Integrated renewable energy is considered a crucial technology for the energy transition. It combines the individual electricity, heat/cold, and mobility energy sectors, ensuring efficient, economical, and the right use of renewable energy. Compared to conventional energy systems, these systems have numerous benefits, such as decentralised energy production, environmental impact reduction, and better energy security. Its source, renewable energy, is available in most parts of the world. From solar power to hydro and wind to geothermal – renewable energy
provides the sector every opportunity to reduce its carbon footprint. A diverse range of promising technologies is already available to enhance the flexibility of energy systems such as smart grids, energy storage, demand response, and green hydrogen. For example – one such technology is the fuel cell electric car that is powered by hydrogen, making them more efficient and environmentally friendly as they emit water vapour and warm air only. Furthermore, operating a reliable electricity system requires the instant pairing of supply and demand. Renewable energy-enabling technologies can help maintain the supply-demand balance by acting as either supply or demand, making it a flexible resource that can help grid operators manage the integration of renewable resources and respond
Working together Only by viewing the whole energy system in its entirety and understanding how it all works together can decarbonisation be achieved, says Dr Hassam Chaudhry.
2060 World demand for raw materials could double by 2060
11
to changes in system conditions. Several positives and benefits can be achieved when renewable energy sources (such as solar and wind), distributed generation, energy storage and related technologies, and demand responses are integrated with the transmission and distribution systems. Benefits such as using clean energy instead of carbonheavy fossil fuels, better utilisation of available assets resulting in a lower cost of production, the system reliability, resiliency, and security are increased due to the use of the integrated technology. Integrated renewable energy systems work in a coordinated manner and, through their versatility, can provide long-lasting benefits across the globe. Although adopting such systems has been slow, it is now time to fully use the system to benefit the larger good. Underpinning the above is the ever-increasing need to create a more sustainable future. Although renewable energy is the answer to most environmental issues, it will not facilitate the decarbonisation of the economy on its own, only by viewing the whole energy system in its entirety and understanding how all distinct elements can work together efficiently– energy carriers, infrastructures, and consumers – can decarbonisation goals become a reality.
Despite the COVID-19 pandemic and the delay by one year of EXPO 2020 Dubai, urbanisation, and development have continued to rise at a rapid rate. Research indicates that buildings consume 80% of the overall energy demand in the UAE and 40% across the globe” MEConstructionNews.com | March 2022
12
THE BIG PICTURE
01 UNITED STATES
03 UNITED KINGDOM
Bentley Systems acquires Power Line Systems in $700m deal Bentley Systems, the infrastructure engineering software company, has announced the completion of its acquisition of Power Line Systems — a leader in software for the design of overhead electric power transmission lines and their structures. The firm was acquired from private equity firm TA Associates for approximately $700 million in cash. Bentley Systems said that when it provided its full‑year 2022 financial outlook, they would reflect the inclusion of Power Line Systems in their figures.
02 UNITED STATES
Apollo to invest $1.4bn into Aldar Aldar Properties and Apollo Group Management have signed a landmark commitment that will see Apollo‑ managed funds and clients invest a total of $1.4 billion in strategic capital to drive the developer’s transformational growth initiatives. As part of the deal, Apollo will take a direct minority stake in Aldar Investment Properties at its Net Asset Value, highlighting the underlying strength of its asset base and Apollo’s conviction in the company’s growth strategy, management capabilities, and ability to capitalise on accretive opportunities that lie ahead.
Kent awarded engineering works contract for VNZ project in UK’s Humber region
Kent, the Dubai‑based integrated energy services provider, has announced that it has been awarded engineering work for the V Net Zero (VNZ) Project by Harbour Energy, the UK’s largest independent oil and gas company. The VNZ Project will materially support the delivery of the UK Government’s 10‑point Energy Transition Plan for 2030 and has the potential to exceed the Plan’s carbon capture goal on its own/single‑handedly.
04 AUSTRIA
06 EGYPT
Austria’s SAN Group to set up green biotech facility in RAKEZ
Schindler Group awarded Cairo Monorail contract
Austria based biotechnology firm SAN Group plans to set up a green biotechnology facility within the Ras Al Khaimah Economic Zone (RAKEZ). The company’s green hydrogen and farming subsidiary, SAN Enertech, will be constructing a fully integrated sustainable hydrogen production unit, plant, and fish farming on a land plot of 8,470sqm in RAKEZ Al Hamra Industrial Zone at an investment of $3.2m. It will consist of a research centre, laboratory, desalination plant, green house, as well as hydroponic and aquaponic indoor systems.
March 2022 | MEConstructionNews.com
05 REPUBLIC OF CONGO
DP World commences construction on new Banana Port in DR Congo DP World and the Democratic Republic of Congo (DRC) have laid the first stone to mark the start of construction of the new Banana Port. The stone laying follows the signing of a collaboration agreement in December 2021 between DP World and the DRC Government to develop the first deep water port in the country. The new port is being developed at Banana, along the country’s 37km coastline on the Atlantic Ocean in Kongo Central province.
Schindler Group has announced that it has been awarded a contract to deliver, install and maintain 136 elevators and 272 escalators for the Cairo Monorail Project. The landmark project will help to connect Egypt’s New Administrative City to East Cairo. The city will be Egypt’s first smart city, covering 700 square kilometres in the desert east of Cairo, making it the size of Singapore. Designed as the country’s new administrative hub, it is expected to house 6.5 million people. Its official opening is planned for the end of 2021.
THE BIG PICTURE
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01 02
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08 QATAR
Qatar FM market to be worth $22bn by 2030 07 SAUDI ARABIA
SFD inaugurates $137m worth of projects in KSA The Saudi Fund for Development (SFD) has inaugurated two new development projects in the water and housing sectors, as well as the laying of the foundation stone for a project in the transportation sector, in the Republic of Djibouti. The total value of investments for the projects is $137 million. One of the projects Al Marshad includes the construction of a 120‑unit residential project. The second project inaugurated covers the construction of 105‑kilometres of water pipes and eight water tanks to pump clean water from the Bissidiro region.
A report by P&S Intelligence notes that Qatar’s facility management (FM) market is poised for growth over the next few years. Its revenue is likely to surge from an estimated $5.28bn in 2021 to $22.3bn by 2030, at a 17.3% CAGR between 2021 and 2030. The strongest reason is Qatar National Vision 2030, under which the government seeks to make the country less reliant on the oil and gas industry. For this, infrastructure is being constructed on a massive scale to support other industries, which will then also drive the demand for FM.
09 UNITED ARAB EMIRATES
Al Hamra Mall sold to Aldar for $111m Al Hamra, the Ras Al Khaimah based real estate development and investment company in Ras Al Khaimah, has divested one of its flagship retail assets, the Al Hamra Mall to Aldar Properties, for a consideration of $111.6 million. Al Hamra Mall is spread across G+1 floors and offers an area of 27,000sqm and caters to both residents and tourists. The RAK developer said that the sale reflects Al Hamra’s track record of creating high‑ value real estate assets at key locations in the Emirate of Ras Al Khaimah, with the potential to attract inbound investments from reputed investors and developers.
MEConstructionNews.com | March 2022
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THE BIG PICTURE
15 16 17 11 10
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10 SAUDI ARABIA
12 UNITED ARAB EMIRATES
Depa receives $41m in investment from PIF Depa has entered into a subscription agreement with Saudi’s Public Investment Fund (PIF). The deal sees PIF invest $41m in the Dubai company in return for allotment of 750m new Class A shares. The deal will also see a restructuring of Depa’s board, which will increase the number of directors from five to 11 – with the six newly‑appointed directors to be nominated by PIF. As part of the transaction there will be a warrant instrument issued to PIF, whereby certain payments relating to tax and/or DSG will allow PIF to exercise the Warrant Instrument and receive up to 272,829,158 additional Class A shares.
March 2022 | MEConstructionNews.com
11 BAHRAIN
Construction begins on Nadeen School Dilmunia in Bahrain Ithmaar Development Company (IDC) and Naseej have started construction of the Nadeen School Dilmunia. The facility is at the heart of the mixed‑ use development, which is being built on a man‑made island in Bahrain. The Nadeen School Dilmunia was designed by Mohamed Salahuddin Architects and Engineers Bureau (MSCEB). It will accommodate 1,056 students up to the ninth grade. The new campus will include a total of 44 classrooms with wide corridors to create internal teaching, learning, and recreational areas.
wasl Properties launches Gardenia Townhomes II in Jebel Ali
wasl Properties, the UAE‑based real estate developer, has announced the launch of Gardenia Townhomes II, part of its master development in Jebel Ali, Dubai. The development features 92 townhouses, comprising of 66 three‑ bedroom and 26 four‑bedroom units in various plot sizes. The release of the townhouses comes in the wake of the selling‑out of Phase One of the project, three years ago. Phase One consisted of 257 units. The development is located near Ibn Battuta Mall.
THE BIG PICTURE
15
14 OMAN
13 UNITED ARAB EMIRATES
ALEC appoints new head of Digital Construction ALEC has announced the appointment of Andy Boutle as its head of Digital Construction is part of its ambitious strategy to accelerate the ongoing digitisation of its operations. In this newly created role, Boutle will focus on the digitisation of the entire value chain for projects undertaken by ALEC, with an emphasis on increasing workflow communication and vertical efficiencies. Boutle has worked in various engineering and management roles for both consultants and contractors with a more recent specialisation in BIM.
Oman’s Jusoor Foundation launches social investment projects Oman’s Jusoor Foundation has launched four projects within its social investment programme in North Al Batinah. $894,000 will be invested into the projects, which are being funded by OQ and Sohar Aluminium. The first project is the 28,000sqm Al Qurm Natural Park in the Wilayat of Shinas. The second project is the construction of a park in the mountainous area of Al Hayleen in the Wilayat of A’Suwaiq on an area of 2,000sqm. The third project was to provide equipment to clean beaches in the wilayats of the Governorate.
15 CHINA
Dar Al Arkan opens Beijing office Saudi Arabia’s Dar Al Arkan has opened its first office in Beijing, China, in line with the developer’s strategic expansion plans. The Beijing office will serve multiple functions to allow for joint ventures between Dar Al Arkan and leading Chinese real estate developers for the Chinese and the Saudi market, further increasing and facilitate collaboration between Saudi Arabia and China and enhance investment and knowledge sharing opportunities. It will primarily promote cooperation and partnerships within the real‑estate and technology sectors to exchange and implement global best practices.
17 SOUTH KOREA
16 SOUTH KOREA
NMDC and Daewoo Engineering and Construction sign MoU The National Marine Dredging Company (NMDC) has signed a memorandum of understanding (MoU) with Daewoo Engineering & Construction, in a bid to cumulatively grow business opportunities across the Middle East and Africa. Through the MoU, the two entities will jointly explore onshore and offshore engineering, procurement and construction projects. The partnership will focus on marine, dredging and reclamation projects, in addition to identifying opportunities in industries such as energy, port development and urban development projects.
South Korea’s Doosan Heavy to build $834m casting and forging facility in KSA Doosan Heavy Industries and Construction Company, the South Korean firm, has announced that it has secured a $834 million EPC contract to build a casting and forging facility at the King Salman International Maritime Industries Complex, which is located near Jubail, in the Eastern Province of Saudi Arabia. The facility will have an area size of 400,000sqm and the capacity to produce 60,000 tons of casting and forgings per year, making it the largest facility of its type in KSA. will be completed by Q1 2025.
18 MALAYSIA
Dubai’s ekar begins expansion into SE Asia with Malaysia launch On‑demand car rental company ekar has launched its car subscription service in Malaysia, starting in Kuala Lumpur. The move comes hot on the heels of its Thailand launch announcement last month and its service will be the first offering of its type available in starting city Kuala Lumpur. The firm explained in a statement that it plans to roll‑out across Malaysia towards the end of 2022. ekar also expects to launch peer‑to‑peer carshare in Malaysia by the end of 2022.
MEConstructionNews.com | March 2022
16
MARKET REPORT
Industry outlook
Dubai’s Residential Rebound UNITED ARAB EMIRATES
Savills World Cities Prime Residential Index finds that Dubai recorded the third highest growth in 2021 prime residential capital values among 30 cities as its residential market rebounded
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ubai’s prime residential capital values climbed 17.4% in 2021, as buyers flocked to the city for its competitive pricing, quality of life and warm climate in addition to the UAE’s successful handling of the Covid-19 pandemic, according to Savills World Cities Prime Residential Index. The emirate experienced astonishing price growth in second half of 2021, reaching levels not seen since before the financial crash in June 2008, driven by strong demand which outstripped existing supply, a successful vaccination program, opening of international borders, and other national government measures.
March 2022 | MEConstructionNews.com
Prime residential markets continue to revive globally with positive price growth seen across 28 of the 30 cities in the Savills Index in 2021. North America outperformed all other regions, driven by rising incomes, affluent buyers and a return of urban migration. Miami was the strongest performer; experiencing high demand because of its warm climate and quality of life, a situation echoed in Dubai’s prime market. Along with the prime sales market, Dubai has experienced significant rental growth fuelled by national government measures and the return of professionals to the city. On a year-on-year basis, Dubai’s prime residential rents jumped 25% in December 2021, the highest among the 30 cities tracked in the index. Rental values across the Index increased by 3% in the six months to December 2021, and over 85% of cities saw positive rental growth over the period. Cities achieved their strongest half-year performance in seven years, driven by the great revival of mega cities New York, London, and Singapore as well as buyers desire for the lifestyle on offer in the likes of Dubai and Miami. “Despite the threat of market cooling measures, such as rising interest rates, 2022 looks on course to continue the positive trend of 2021,” comments Paul Tostevin, head of Savills World Research. “Prime rental growth has made a staggering recovery in the second half of 2021, creating an ongoing imbalance between
supply and demand which is underpinning increased prices. 28 out of 30 cities are set for growth in 2022, albeit at a more moderate rate than last year. Low-interest rates and rising incomes have increased mortgage affordability, while some cities (Miami, Dubai and Lisbon) have benefitted from the flexibility of remote working, and the desire for more space. Alongside a return to offices, education and travel will also deliver growth to all major cities.” Swapnil Pillai, associate director, Middle East Research said, “The stellar performance of Dubai in our research findings is proof of the successful efforts of the government in making the emirate a destination of choice during the pandemic. Prime capital values in Dubai are still undervalued compared to its global counterparts which will set the stage for further price appreciation in 2022, albeit at a more sustainable level.” Average prime capital value growth across the Index is forecast to reach 4.3%, the second-highest in five years. All cities, except for Hong Kong and Paris, are set for positive growth in 2022. Dubai is poised to grow above the average, up to 6%, as the strong demand spills over into 2022, whilst Miami and Berlin are forecast to increase by 10% or higher. Across the 30 cities in the Index, the average gross yield over the year remained at 3%. 2021 front runners Dubai and Moscow took the lead with yields above 4.5%, whilst Asian cities recorded just under 2%.
MARKET REPORT
PRIME RENTAL VALUE GROWTH TO DECEMBER 2021
6 MONTHS
17
1 YEAR
30% 20% 10%
WEEKLY RENT COMPARISON DECEMBER 2021 (US$ PER SQFT)
US$1.36
Tokyo
US$1.26
Los Angeles London
US$1.09
Moscow
US$1.08 US$1.01
Paris
NEW YORK
New York achieved 11.5% rental value growth in the last six months
US$0.93
Rome
US$0.89
Seoul Singapore
US$0.77
Amsterdam
CITY
2021 PRIME CAPITAL GROWTH VALUE
2022 PRIME CAPITAL GROWTH FORECAST
Miami
21.3%
+10% or higher
Berlin
9.6%
+10% or higher
Moscow
15.0%
+8% to 9.9%
Seoul
12.0%
+8% to 9.9%
Singapore
7.9%
+6% to 7.9%
London
2.8%
+6% to 7.9%
Dubai
17.4%
+4% to 5.9%
Los Angeles
19.7%
+4% to 5.9%
Sydney
8.0%
+4% to 5.9%
US$0.76
San Francisco
7.5%
+4% to 5.9%
San Francisco
US$0.76
Amsterdam
4.0%
+4% to 5.9%
Miami
US$0.76
Geneva
6.5%
+4% to 5.9%
Milan
2.8%
+4% to 5.9%
New York
2.6%
+4% to 5.9%
MIAMI
Miami attracts buyers for space and quality of life
Milan
US$0.69
Berlin
US$0.65
Madrid
1.8%
+4% to 5.9%
Bangkok
US$0.64
Barcelona
0.4%
+2% to 3.9%
Mumbai
US$0.59
Hangzhou
17.1%
+2% to 3.9%
US$0.57
Guangzhou
14.5%
+2% to 3.9%
Shanghai
11.0%
+2% to 3.9%
Tokyo
2.4%
+2% to 3.9%
Mumbai
1.3%
+2% to 3.9%
Bangkok
4.6%
+2% to 3.9%
Rome
1.3%
+2% to 3.9%
Cape Town
-0.2%
+2% to 3.9%
Lisbon
7.6%
>0% to 1.9%
Kuala Lumpur
1.6%
>0% to 1.9%
Shenzhen
5.4%
>0% to 1.9%
Beijing
1.0%
>0% to 1.9%
Hong Kong
1.3%
0%
Paris
-1.6%
0%
Sydney Shenzhen
US$0.56
Dubai
US$0.55
Shanghai
US$0.55
Beijing
US$0.53
Barcelona
US$0.47
Madrid
US$0.43
Hangzhou
US$0.34
Guangzhou
US$0.33
Cape Town Kuala Lumpur
US$0.22 US$0.16
LONDON
Professionals, higher education students and international buyers have returned
DUBAI
Professional expatriates have driven prime rental growth
Kuala Lumpur
Amsterdam
Bangkok
Hong Kong
Paris
Cape Town
Sydney
2022 CAPITAL VALUE GROWTH FORECAST VS CAPITAL GROWTH VALUE IN 2021
US$1.64
Hong Kong
San Francisco
Shanghai
Barcelona
Madrid
Rome
Tokyo
Mumbai
Beijing
Los Angeles
Milan
INDEX STANDOUTS
US$1.97
New York
Source: Savills Research
Shenzhen
Guangzhou
Seoul
New York
Hangzhou
Berlin
Singapore
London
Moscow
Miami
-10%
Dubai
0%
MEConstructionNews.com | March 2022
18
ANALYSIS
Dubai2040
A New Era UNITED ARAB EMIRATES
Dr Fadi Bayoud of Strategic Anchors outlines what a construction engineering business must do if it wants to be part of Dubai’s 2040 plan and circular economy
T
he Dubai2040 Urban Master Plan will open a new era for Dubai and UAE, where existing industries will transform and evolve, and
March 2022 | MEConstructionNews.com
many others will develop. Therefore, the economic and social environments that we experience now will be gone forever. Before Duabi2040’s implementation is halfway through or even before it starts implementation, the business, technology, and social landscapes will already be different: new digital products and solutions, new processes, new mentalities, new people, new social norms, new educational paradigms, new climate ... new everything. Do you want your firm to play an active part in the “new everything”? If the answer is yes, then you must build a strategy that is aligned with Dubai2040 vision. But, how? To prepare for this vision and play an active part in it, firms must go through a strategic soul-searching exercise, which is not easy because they would be mostly looking into an emergent future that is oriented by Dubai’s North Star: The Dubai2040 Masterplan!
A good business strategy starts by 1. analysing the current state of the industry and by 2. imagining scenarios based on the possible futures of the technological states that might and could impact the industry and the social landscapes and by 3. evaluating the change impact on the firm and its customers and people. This happens through uncovering a set of questions and their possible answers, with Dubai2040 in focus. ASK THE RIGHT QUESTIONS
Asking the right questions is halfway to finding the right answers that fit the firm’s needs! Be wary, however, of those who give you generic and offthe-shelf solutions/answers! Good questions and answers produce a common language and an alignment to facilitate an informed strategy that is based on grounded assumptions, distilled
2040 Vision Dubai’s 2040 Masterplan will require firms to align their strategies with the emirate’s vision and plans.
2040
The Dubai2040 Urban Master Plan will open a new era for the country
ANALYSIS
from data and information. The data for each company is obtained from its culture, people, pattern of “the ways they do things”, clients, history, etc. In addition, it is the quality of the questions that are generated that determine how data and information are gathered and analysed. Good questions will allow different people to see the same ‘data’ differently, thus will allow them to assume/conclude different ‘information’ which will generate different assumptions, thus different strategy; this especially happens when these people are leading the same company. Consequently, no two companies (no matter how similar they are in terms of products/services and markets), no two companies will have the same response even to the same questions that they may individually generate; for each company there is only partial overlap with respect to the questions with natural variety to responses and will draw different strategic conclusions. How to engage with the New North Star that has now appeared on Dubai’s horizon? By formulating an informed strategy that emerges from engaging with conflicts and dilemmas through Strategic Conversations. These demands extract collective intelligence that leads to collective knowledge that i) reflects a company’s wisdom, ii) develops into intent, and iii) emerges as shared purpose to navigate the future. SUGGESTED QUESTIONS
Having the Circular Economy in mind, these are some of questions that came to my awareness, which can provoke many, many more other questions to explore. In addition, question should not be answered once and shelved; on the contrary, this exercise must be repeated as required so that the firm enjoys the benefits of a real-time and dynamic strategy making. 1. Future Landscapes: What will the World, Middle East (West Asia), GCC, UAE, and Dubai be like across the five-year intervals from five to 20 years from now? More specifically, what are the megatrends, emerging issues, and possible signals that can shape these landscapes: governments, industries, firms, customers, and people? Consequently, what are the possible scenarios (futures) that can
Look to the future Dr Fadi Bayoud says that firms need to make decisions in the present that will benefit them in the future.
400%
Public beaches will increase by 400%
60%
of the Dubai2040 Urban Master Plan will comprise of nature reserves and natural areas
materialise out of these megatrends, emerging issues, and possible signals? Based on that, what are the things that we are doing now that will have no place in such scenarios and futures? Similarly, what are the things that we are doing now that will continue to be useful in the future? Also, questions extend to analyse the things that we are not doing now but will be useful in the future, in addition to analysing and evaluating the things that we do not want to do. (Strategy is also choosing what not to do!) 2. Objectives: Organisations originate for a purpose in a context. When the context changes with new emerging states and the options offered thereby change, that purpose and what the firm does (the outcome of its system) must adapt to the surroundings. So, questions must reveal objectives and desires as well as what we do not want to achieve. Important question then surface, which are: i) how to prioritise these objectives, ii) who the major stakeholders are that have an impact on objectives, and iii) how to deal with them? In parallel, we need to ask whether these objectives are aligned or can be aligned with what the future might bring. Since our day-to-day issues dictate how we approach problems and how we look at the future, we need to analyse how our current business problems/issues affect the selection of these objectives/priorities. And in order to analyse our strategic thinking, we check whether our firm enjoys a system
19
of interconnected objectives that generates a holistic and strategic view. 3. Industry and Market: Although exiting an industry may not be easy if the future turns adversarial to an industry, we must ask whether it is worth changing it and/or our strategic group? If we choose to stay, can the products and/or services that we offer now become more futureproof? And if they cannot, can we expand their availability for the future, and what changes do they require to be more futureproof? Or are we better off if we introduce new products and/or services? Then another important question surfaces: what products and/or services will be useful for scenarios that will depart from the linear prediction and forecasting? 4. Readiness: The future will be very different, and we need to be ready for it; but how? It is a certainty that we need to let go of the status quo and the parties that are married to holding on to the status quo. We must change; but what and how to change is a crucial question? What and how do we have to develop, transform, and evolve? But then, how to define readiness, to start with? For each of the ‘Objectives’ that we seek to achieve, do we have the seed for it, or we need this seed? Can our processes, people, and business model be developed, transformed, and/ or evolved to meet these objectives? How did we perform and what was our success rate with previous transformations? What have we
It is the collective duty of the senior executives to find a strategy that allows their firm to be part of the future; this will require however an inclusive character and leadership with high standard” MEConstructionNews.com | March 2022
20
ANALYSIS
learned? Do we have an archive with lessons we believe we have learned, or can we possibly gain the benefits from the lessons learned by others? Have we accumulated enough knowledge to answer the above questions? And most importantly, do we know who we truly are? Have we done a deep analysis of our weaknesses and strengths? 5. Time: Construction activities (which involve a conversion that requires planning and execution) must finish before 2040; but how long before? Consequently, when will the activities need to start? When do we need to be ready with a timeline for our analysis, objectives, and the evaluation of the critical paths and the various dependencies? A major question here: how can we develop a dynamic timeline that adapts to changes and emerging issues? 6. Resources: Construction is a resource-based industry with a wide range of installed capacity in terms of input and productivity and quality of output. Resources dictate to some extent what real options can be availed of. So, the first set of questions are: What resources do we have? How futuristic are they? How distinctive are they? How dynamic are they? In order to know how we handle our resources; we must analyse and evaluate our history in creating and well-managing them. Since these resources will be needed in the future, we answer the following questions: what are the resources that are required in the above scenarios, that are now available? What are the resources that are required in the above scenarios, that are not yet available? How are these resources linked to our above objectives? Furthermore, analysing the Lifecyle of Resources give us the insight whether they are market-ready, or in the R&D, or can only be sourced from early adopters, etc. For the resources that we do not have, we ask how to develop, acquire, integrate, and/or build them? Consequently, do we have the infrastructure to handle these resources and their dynamic (changing) natures when they enter the market? If not, what must we do then? Are we big enough or smart enough to help in making our infrastructure market ready? March 2022 | MEConstructionNews.com
SOME SUGGESTIONS AND IDEAS THAT CONTEXTUALISE THE ABOVE QUESTIONS
Below are some suggestions (not even close to being exhaustive) on what firms might want to explore: AGREE ON YOUR STRATEGY WITH YOUR TEAM
It is time that firms’ senior executives sat on a round table and discussed
134%
Areas for tourism will be expanded by 134%
what, where, how, why, when they need to do things differently, sustainably, profitably, and socially acceptable. Many disciplines must be present on this round table because the world will not accommodate firms with one-man-show! It is the collective duty of the senior executives to find a strategy that allows their firm to be part of the future; this will require however an inclusive character and leadership with high standard.
DUBAI2040 URBAN MASTER PLAN
SUGGESTIONS WITH THE CIRCULAR ECONOMY IN MIND
Expanding the services within existing urban centres
Surgical construction is required, where new concept of construction operations is required to: • • • • • • • • • • •
Approach net-zero emissions Infuse sustainability in everything we do Use eco-friendly designs and operations Use construction recycled material Use renewable energy sources Reduce or even eliminate noise, dust, vibrations, and other pollutions Reduce or eliminate traffic disruptions Reduce or eliminate the use of heavy machines Reduce the number of construction people Operate with superior Health and safety standards etc.
Will it then be 3D-printed or completely finished products that are assembled on site? How will the products be transported to site? What is the role of underground service tunnels? Sustainability, smart sensors, & AI in everything
Start developing resources to handle these
7.8 million people during the day
• What smart & AI infrastructure will they require? • How will the social landscape evolve, and how can we be ready?
Green spaces & lots of water – in the form of parks & nature reserves – will occupy 60% of the city
This requires many multidisciplinary engineering teams to design, plan, construct, and sustainably maintain using AI, sensors, robots, smart systems, AR/VR, 3D printing, and technologies that are yet to be invented.
Public beaches will increase by 400%
What will the role of biotechnology be in engineering construction?
55% of the population will live within 800 metres of public transport and use integrated services centres
Companies must think about the last 800 meters: unmanned land/aerial/underground vehicles will be the solution, and they will require different kinds of roads and infrastructure? Can micro-tunnelling be an option? Wil MaaS (Mobility-as-a-Service) play a role? Who will be leading MaaS and how can construction firms make use of it? For sure, sensors and IT will be integral to the infrastructure.
Date
07 June
Venue
Dubai
DUBAI / UAE
Sustainable design, resilient transportation and empowered youth – the keys to a brighter future 07 June 2022
About the
Future of Architecture The second Future of Architecture Summit (FOA) will build on the breakout success of the inaugural edition with a captivating and insightful agenda that will be discussed and debated by some of the region’s best and brightest minds.
Insightful
Discussions The one-day conference will feature high quality dialogue and provocative discussions; we will be hosting leading names from across the region, providing a terrific opportunity to see how the realities behind the major debates are progressing.
The Summit will provide a platform for construction industry stakeholders to discuss a multitude of topics including future city requirements, net zero building design, resilient design strategies, future transport infrastructure, nurturing future talent and much more. Along with a rich agenda, the summit will also provide unparalleled networking opportunities in full compliance with all local COVID-19 related regulations.
Networking
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22
IN PROFILE
Lootah Holding
Time for Change BIG PROJECT ME SPEAKS TO SUSY ARYANI SINGGIH, THE GROUP COO AND GROUP GENERAL COUNSEL FOR LOOTAH HOLDING, ABOUT THE IMPORTANCE OF GENDER DIVERSITY IN THE INDUSTRY AND HOW THE PANDEMIC HAS CHANGED EVERYTHING FROM CONSUMER DEMANDS, THROUGH TO HOW COMPANIES NEED TO OPERATE
| MEConstructionNews.com October March 2022 2021| MEConstructionNews.com
23
MEConstructionNews.com | March 2022
24
IN PROFILE
t is estimated that women make up just 14% of the global construction workforce, with the vast majority of that number concentrated in office and off-site roles. When broken down further, the discrepancy becomes even more apparent, with even fewer women to be found in leadership roles within companies. When one looks at the Middle East, the picture is even starker, with the number of female decision makers in the regional construction industry able to be counted on one hand, and the percentage of women working in the industry far lower than the global average. This is due to a combination of cultural, social, and economic factors, but there are signs that things are changing, particularly in the wake of recent announcements by the UAE government. These announcements target the improvement of gender balances in the country’s workforce – with a particular emphasis on women in leadership roles – come as part of its pledge to fulfil one of its Sustainable Development Goals. Therefore, as part of the initiative, the UAE’s private and public sector has committed to raising the percentage of women in leadership positions to 30% by 2025. Amongst the companies that have signed up to this pledge are some of the region’s biggest real estate developers – Majid Al Futtaim and Dubai Holding, along with other construction-associated firms such as Schneider Electric. In addition, the government has been actively pushing for young women and girls to take on STEM education courses in university, thereby broadening the graduate hiring pool for the construction and engineering industries. Given the growing interest and changing attitudes towards gender March 2022 | MEConstructionNews.com
diversity in the industry, Big Project ME caught up with one of the few female leaders in the UAE construction and real estate sectors, and the recipient of the 2021 Female Executive of the Year Award at the Big Project ME Awards 2021 – Susy Aryani Singgih, the Group COO and Group general counsel for Lootah Holding. A solicitor of the Senior Courts of England and Wales, with extensive international experience, Singgih has worked in London, Singpore, Indonesia, Japan, and the UAE, in both the public and private sectors. Prior to joining Lootah Holding, she held senior positions with the Government of Dubai, and was also the General Counsel of Dubai Ventures Group (a Dubai Holding company). She has also held senior positions at prominent international banks and worked at international law firms. As part of her role at Lootah Holding, she has been tasked with driving change across the group’s companies, transforming their cultures
Driving change Susy Aryani Singgih has been tasked with transforming the culture of Lootah Holding’s companies and modernising them.
Shifting priorities The pandemic has caused buyers and investors to shift their priorities when it comes to purchasing properties and apartments.
$19m
Total value of the new LOCI residential project
and shifting mindsets across the board, and particularly in their construction and real estate businesses. “I was initially somewhat reluctant with joining a family-owned company, because there was this perception that family businesses can be quite messy and not as structured as corporates. But when I met with the shareholders, I fell in love with their vision (for the company) and wanted to be part of their growth,” Singgih says while reflecting on her journey with Lootah Holding, which began approximately three years ago. “I was hired to make the company have more of a corporate environment and change the way it used to operate. However, while we are transitioning to a more corporate culture, we still want to maintain this family-like bond, where the employees feel like they’re part of a family, that they’re part of a goal and that they’re instrumental to the organisation.” Singgih explains that it is important to her and to the leadership team at Lootah Holding that employees don’t feel like they’re just coming in and punching the clock. By getting them to buy into the company’s culture and values, employees will be more committed and invested, thus bringing in different perspectives and thought processes to the table. “We have created different strategies, changed the way we operate – and of course, with the pandemic, we all got blindsided and lost our bearings a little, but we’re proud of the fact that we didn’t downsize. Instead, we found ways to keep our workforce intact, found ways to keep operating, and slowly, we found our way and now in 2022, it will be all about growth,” she asserts proudly. However, the pandemic also offered Lootah Holding’s companies some valuable lessons, with the construction-related segments – Lootah Real Estate Development and Lootah Engineering and Construction – having to adapt and cope with a market that changed almost overnight. “It was a challenge, because the demand in the market shifted somewhat,” Singgih says. “The pandemic made people realise that they wanted bigger living spaces, that they wanted to a space that afforded them the opportunity to have a proper life with
IN PROFILE
25
their families, but also with a work area. So, there was a need for a hybrid model. “You can see that people have shifted from apartments to villas, while people who used to share apartments have shifted into their own spaces. But it’s not only the pandemic, it’s also Dubai as a whole. Over the years, I’ve seen the transition from affordable housing becoming quality affordable housing, which is why Dubai continues to be an attractive place for people to move to – there’s nowhere else you can find such affordable housing, built with such quality,” she points out. Another major market shift has been for residences that incorporate modern concepts and designs, that have technology and sustainability at their heart, Singgih says. “The biggest transition I see is that people are more aware of the environment and are willing to pay more for environmentally friendly accommodation. People also want technology to be embedded into the way that they live – we have transitioned so much that the older buildings of Dubai are no longer appealing and there is now a need to make eco-friendly, technologically savvy spaces that allow people to live and work,” she adds. This is why Lootah Real Estate Development has launched a $19 million new project that is targeted at the needs of the UAE’s young professionals and learners. LOCI, as the project is known, is a five-storey, 114-unit residential development that provides a sustainable living experience, with ecofriendly, cleaner utilities and innovative design, built on an intimate scale. Singgih says that LOCI is in response to the demand in the market for a product of this nature, pointing out that there is a need to ensure that people of all levels have the right kind of facilities and accommodation, if Dubai is to thrive as a city. “The key to success for any business is to know what the demand is out there. When you tap into the market, you know what people are looking for, and then you produce it. People have realised that they want space, that they want a self-sustainable building where they have everything they need. The MEConstructionNews.com | March 2022
26
IN PROFILE
market has shifted so much in terms of its mindset, about what it considers critical and important,” she explains. “We have to look at the social element as well – it’s not only about making money. The Lootah Brand isn’t about money all the time. We have to think about people – we are part of the people, and for the people. We’re a very traditional and old brand, and we can’t just think about commercial gains – that’s what separates us from larger property developers and construction companies.” She adds that with Dubai having proved itself during the pandemic – with a strong economy and continuing to be open for business while still keeping residents and visitors safe and secure, there will be an upswing in demand for property within the emirate, especially in the wake of the Expo. “People talk a lot about oversupply in the market, which is relatively true. But at the same time, there is more demand now, especially with the Expo. People in this region – especially in the GCC – love the idea of having a second home in Dubai. That belief has extended over the years to even include Europeans, for whom the concept of having a second home in Dubai is a very appealing one. Especially with the Golden Visas being introduced. So, I believe that there is a demand for housing here, and as long as there is demand, then real estate and construction companies will continue to thrive.” However, Singgih is quick to point out that while the opportunities may exist in the market, the sector will need to adapt and chance to take advantage of them. In particular, she highlights the need for collaboration between sectors, especially in the wake of the pandemic. “I think now, more than ever, you see different sectors collaborating together, which is a positive trait. We have people in technology working with people in real estate to create something unique. I see the collaboration between technology and real estate getting stronger in the coming years, actually. People are willing to invest more in housing with technology, because the pandemic has taught us and prioritised our spending, and people have realised that the home is the most important thing.” March 2022 | MEConstructionNews.com
A need for space Home-owners and tenants consider space and light to be key factors when choosing a residence now, post the pandemic.
5
Total number of storeys in the LOCI residential project
Although Lootah Holding is thriving despite the challenges of the pandemic, Singgih asserts that as Group COO, more needs to be done within the company to bolster its inner structures and set it up to be a leading organisation within the UAE and beyond. At the top of her priority list is addressing the gender balance disparity within the company itself, and particularly in the construction and real estate segments of the business. When she joined the company, she says she found the Real Estate, Construction and Logistics business units to be heavily male dominated and has formulated a plan to improve this. “In the real estate and construction sector, it’s difficult for women to be taken seriously and it’s difficult for
The pandemic made people realise that they wanted bigger living spaces, that they wanted to a space that afforded them the opportunity to have a proper life with their families, but also with a work area. So, there was a need for a hybrid model”
IN PROFILE
them to penetrate into the sector, because it’s very male-dominated space, it’s a very rough environment. While we do have women in the construction sector, they’re mainly designers and engineers who are sitting in an office, and that’s sad, because if there were more women in construction, and if they were able to walk onto a site and see other women taking part, I think they would feel more comfortable.” Therefore, it is no surprise that Singgih wholeheartedly backs the UAE government’s initiatives to promote gender diversity and encourage young female students to choose STEM courses and careers. “If you look at the new batch of Emirati graduates, especially women, you’ll find that there are more and more
women in engineering, biochemistry and so on – subjects that used to be taboo for women. And as our children grow, looking at these women in these industries, it will be more achievable for them, whatever they want to be,” she says, highlighting the cultural barriers that need to be broken, so that women can enter the industry. “Parents have a role to play in teaching their kids that anything is achievable, while corporates have a role to play by encouraging gender equality – not for the sake of it or to tick a box, but by getting rid of that stigma.” For her part, she says that ever since she became Group COO, she has made a conscious decision in recruitment to ensure that at least 50% of the CVs chosen are female.
Smart homes Technology will play a huge role in residential housing market, with buyers wanting smarter and more adaptive homes.
114
Total number of units in the LOCI residential project
27
“At the end of the day, I pick the candidates who are the most competent, irrespective of gender. But at sourcing time, I ensure that it’s at least 50% male and 50% female, so as to allow women the opportunity to apply and be considered.” Furthermore, she states that she has also taken extensive steps to put in place employee welfare and wellbeing protocols, so as to ensure there is a better work-life balance in place for her employees. Given the demands of the real estate and construction sectors, Singgih acknowledges that it can be difficult for individuals to cope with the stresses, especially at a time when the pandemic has put a strain on everyone’s mental well-being. While the UAE government has taken steps to address the work-life balance, there is still plenty more to do, she asserts. “Dubai has begun to change, but it took a while to transition to the modern way of working. Asia and Europe have moved away from sitting in front of a screen for 12 to 15 hours a day. Now, I ask my employees to be more effective and to work smarter – time management is crucial, as is prioritising jobs. People still feel insecure about logging off at 5PM, as if it means that they’re not working. I push back against that belief,” she says, adding that she has been able to introduce a policy of mental health awareness for employees across the group. “We have very good coverage for mental health, so that people can see professionals without stigma. The pandemic has made all of us anxious, so we’ve increased our focus on mental health and wellbeing. We hold regular workshops, where we tell people that it’s okay to not be okay and give them a space to talk about their worries. “Corporates have to be more human in their approach – they have to understand that people are not machines. You have to invest and care about your people. People like it when they see that their leaders see them as humans, and invest in them – their productivity will increase, as well as their dedication and passion,” she concludes. MEConstructionNews.com | March 2022
28
| MEConstructionNews.com | MEConstructionNews.com September March 20222021
SITE VISIT
29
LINQ PROJECT NAME: LINQ Modular Factory LOCATION: Dubai Industrial City PARENT COMPANY: ALEC FACILITY PLOT SIZE: 31,000sqm MANUFACTURING AREA: 10,500sqm
Built for Purpose GWYN TAYLOR, GENERAL MANAGER OF LINQ, TAKES BIG PROJECT ME ON A TOUR OF THE MANUFACTURER’S FACILITY IN DUBAI INDUSTRIAL CITY, AS IT GEARS UP TO LAUNCH PRODUCTION OF THE REGION’S FIRST HIGH-QUALITY MODULAR HOMES MEConstructionNews.com MEConstructionNews.com| |August March 2022 2021
30
SITE VISIT
he UAE’s construction projects market saw a significant rebound in 2021, with the residential sector leading the way, with the highest number of construction asset awards, a report from leading real estate investment and advisory firm JLL says. This trend is likely to continue into 2022, with demand for residential units set to increase, the property expert states. Furthermore, it pointed out that the pandemic has provided new impetus to investment trends in the country, with investors now considering sustainability as a major factor in where their put their money. The role of the built environment in creating a more sustainable future is now in the spotlight like it never was before. Stakeholder pressure is only rising, with investors, regulators, occupiers and lenders all demanding more from the built environment sector, JLL says. Space, flexibility and cost are also key considerations for the residential investor in 2022, which is why local and regional developers are now exploring a host of alternatives in an effort to attract and maintain investor interest.
March 2022 | MEConstructionNews.com
Sustainable living There is an opportunity in the market to create sustainable, high-quality, modular homes, LINQ believes.
2020
LINQ established
Modular – or prefabricated – homes have begun to emerge as a leading option for the residential real estate development sector after years of the concept being regarded as inferior or ‘cheap’. Thanks to continuous improvements in technology, finishings and building material quality, modular constructed homes are the equal – if not better – of traditionally built structures. In fact, many in the industry predict that the ongoing rise of modular construction has the potential to reshape the way large-scale residential developments are conceived and built, thanks to a range of benefits, including greater control, better environmental
and sustainability standards, reduced costs, and on-time delivery. While modular construction has been in vogue for a number of years in the region, its deployment has primarily been confined to the hospitality and commercial real estate sectors. However, that could soon be about to change, thanks to the influence of major markets such as the UK and Singapore, where modular residences are gaining significant traction amongst homeowners and investors. One company, based out of Dubai Investment Park, has noticed this shift in interest, and having set up shop there in 2021, is now poised to position itself as a regional leader in the modular residential construction space. Established as a company in 2020, LINQ Modular was conceived as a modular housing solution provider that could deliver desirable living spaces that are reliable, robust and of highquality. The company is the brainchild of executives from ALEC Engineering and Contracting, the Dubai-based main contractor, and LINQ’s parent company. These executives believed there is an opportunity to create sustainable, high-quality modular housing that could be easily shipped to both regional and international markets. Heading up the operation is Gwyn Taylor, LINQ’s general manager, who leads a team of experts creating carbon neutral housing solutions that are fast and straight-forward to assemble, to developers and individual investors. “Modular was an opportunity that we were looking at, amongst other things,” Taylor tells Big Project ME during a tour of LINQ’s facility in DIC. “It came up about four years ago when we were approached by a developer from the UK that was interested in looking at the opportunity to develop a modular product to import into the UK market. Those discussions started and died off quite quickly, but we decided to carry on our investigation into the opportunity. “We did that independently and procured a consultant from the UK and we designed and built a prototype as a technical exercise, to showcase what a modular home could look like, and try and dispel the (pre-existing) image of prefab homes,” he says.
SITE VISIT
Having joined ALEC nine years ago, Taylor has been involved with the company’s Related Businesses division since its beginning, working with Hercu Viljoen, the managing director of the division. Around two years ago, he was offered the opportunity to take over LINQ and begin setting up the company’s business plan and getting it ready for operations. “The industry has to change, and we have to move forward. The construction industry probably has the lowest productivity in global business terms. It’s been through the least change and runs at the lowest levels of efficiency. New technologies have to be adopted and it has to go through a transformation, which is going to be painful. And the adoption of modern methods of construction and off-site technology and engineering is a big part of that transformation,” he asserts.
Taylor and his team have faced a number of barriers to entry when it came to the modular homes sector. He explains that not only is cost a factor – the initial set up of the facility and equipment is not cheap – but there is also a knowledge barrier to overcome. Furthermore, any business that seeks to disrupt the established order of doing things needs to prove its capabilities to the market if it is to win work. “We really looked into it, but we thought that this is something that’s really going to change the industry. It’s going to be part of the industry’s transformation and we have to be at the front of that, rather than at the back. That was really the big driver for the decision (to launch the business). Highlighting issues facing construction such as supply and demand imbalances, market imbalances, inability to deliver,
Barriers to entry There are significant barriers to entry for the modular construction sector, including high setup costs and available knowledge pools.
350 Total
number of workers targeted for the facility within five years
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high labour costs, labour shortages and geographic difficulties in delivering projects, Taylor says that having a product-focused approach, rather than a project-focused one, can have considerable benefits. We’ve designed our concept around being logistically enabled. We looked at standard logistic platforms, and at ways of shipping the product effectively. You’ve got to look at the global supply chain and understand how much of the building materials supply chain is manufactured here in the UAE. “The reality of what we’re trying to do here is intersect the global supply chain, to get the materials here, package them together and then ship the product – it’s not as drastic as it sounds.” Initially, the facility will be shipping the completed units to the UK, but Taylor says that the process to get the final products approved in the UAE is
MEConstructionNews.com | March 2022
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SITE VISIT
underway, with the manufacturer working with a local developer and consultant to convince Dubai Municipality. “We’ve been working for the past twelve months with a developer and an engineering practice, both UAE based. On a collaborative basis, we’ve said that we want to try and get a multi-storey modular steel frame approved in Dubai. It took us a few months, but we realised that we wouldn’t be able to do that on our own as we’re a completely new business – they’re not even going to listen to us as ALEC, so we need the support of a major developer and a respected engineering practice. “We’ve been collaborating on getting approval on a multi-storey steel frame modular system. It’s not high-rise, but it’s mid-rise. We’re hopefully in the last
March 2022 | MEConstructionNews.com
Working on approval LINQ is working with a local developer and a consultant to get approvals for the concept from Dubai Municipality.
90% LINQ’s
facility is 90% ready for production
10% of that process. That’s the first step, at the moment the Municipality will only mandate steel frames to G+1, which is low rise housing, so it’s still definitely a positive market for us, but the volume really comes when you get into the mid-rise apartment buildings.” The decision to ship the completed units to the UK came about because of how well legislated the market there is, Taylor says. He points out that Singapore and the UK are the two best legislated and mandated markets in the world for modular construction. In addition, with the UK government investing massively into affordable housing, and stipulating that 25% of government-invested money must go into modern methods of construction, the opportunities
in the UK market are evident. “There is a support network under it, where the authorities have looked at implementing modular – they have regulated it to ensure that it is properly delivered at site level. The stigma has been dealt with and the authorities are in control of it, which doesn’t exist here yet.” LINQ’s facility is now 90% ready, with just a few minor upgrades left to be done after nine months of work to make it fit for purpose. This included the installation of new cranes and lifts, along with guidance tracks, designating workspace areas and so on. However, Taylor reveals that the facility will not have much in the way of automated equipment or robotics, at least initially, as the focus will be
SITE VISIT
We really looked into it, but we thought that this is something that’s really going to change the industry. It’s going to be part of the industry’s transformation and we have to be at the front of that, rather than at the back” on training and putting in place a skilled and capable workforce. “At our facility, the big investment is not in the machinery or robots. It’s in the big training that we do, people with the core skills to do the job properly, where we take people with the core skills to do a job properly and on a repeatable basis. There’s a really big misconception that when you open a factory, you have to automate it from day one. “We can do that, but it’s a massive risk because the reality is that what you want do is automate your repetitive processes, and while we’re building a standard product range, until we get to a point of standardisation, importing in automated processes in robotics (is a waste of time) as what it really means is that we’ll end up changing those processes to keep adapting to what we’re changing as we develop the product. Our process for the factory is quality first – we want to develop a process that is built to support a repeatable quality product, and then focus on speed. “Once we’ve got that, then we’ll understand our constraints and bottlenecks, which is when we’ll be able to look at providing mechanised support and automating to create a better flow, but it’s a staged process that we have to go through,” Taylor asserts. Keeping this in mind, Taylor and his team have begun onboarding their workforce in the facility. Bringing them on in small tranches of 50, the focus is very much on developing skills
and improving production, so as to achieve a consistent level of quality. Although the pandemic has slowed down the process, there is currently a team of about 30 people working on the first units in the facility. Eventually however, Taylor says, the target is to have 350 people in place within a period of three to five years, though this will depend on the workflow and the standardisation of the product range as it grows. “What we’re looking for is a better level of skill and communication – what we’re trying to do is flatten the management curve by having a better quality of production operative. The guys on our work floor will have unambiguous
Flexible workforce LINQ’s workforce is extensively trained and upskilled across different skillsets to ensure flexibility across the workfloor, Gwyn Taylor says.
10,500 Total size, in sqm, of LINQ’s facility
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information, in an unambiguous workspace. We’re trying to provide a workspace for them where they know exactly what they’ve got to do, and where they’ll have all the materials and information. We also need them to be multi-skilled, so that we have balance in our production lines, in case we need to move people around.” To that end, he says that LINQ has put in place a training programme where workers will be onboarded with a primary skilled, and then secondary and tertiary skills will be identified and honed so that eventually all workers will be equally capable across all three skills. “We want to make sure that we have workforce engagement from that point of view as well,” he says, adding that it is key to manage the process and create a flow environment, where everything is worked on as it should be, so that the product moves through the factory smoothly. “We have about 10,500sqm of open workspace – the factory is full at that point – every workstation would have a module being worked on, at any one time. Until we take a module out, we’ can’t bring a module in. If something goes wrong, then we lose a workspace, but we can’t really get above that number, you can’t force more people into the process to make it go faster. “You can only manage the process and ensure everything is working as it should be,” Taylor states as he concludes the tour of the facility.
MEConstructionNews.com | March 2022
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COMMENT
Industry insight
PAUL FIRTH
CALLISONRTKL
The factors driving the need for reimagining existing spaces
G
iven the pace at which the world is changing, driven by technology and accelerated by the pandemic, there is a need to build better, more socially inclusive, flexible, adaptive and regenerative spaces. Across the region, the value of sustainable mixed-use developments is becoming more pronounced. As engines of economic and community vitality, this layered type of development is replacing single-use assets and prompting many to consider recrafting and diversifying their existing portfolios with a mix of uses. These findings have been emphasised in a recently released CallisonRTKL report highlighting the need for reimagining and recrafting existing spaces. At CRTKL, we are guiding many clients through this process and offering design solutions that turn underperforming retail assets around by introducing new anchors in the form of residential, hospitality, work, sports and entertainment spaces. Taking the buildings we have and reappropriating them for a new consumer and new normal is where we need to direct our attention, not least because it can address the issue of embodied carbon and is a more sustainable approach. According to the report, the three key
March 2022 | MEConstructionNews.com
factors driving the need for reimagining and recrafting existing spaces are: 1. THE CURRENT ENVIRONMENT
The world has forced consumers to reassess the lives they lead, and the impact created on the world around them. Now, that introspective contemplation is filtering through to the urban realm. The industry has a once in a generation opportunity to change the urban fabric of towns and cities for the good of communities, and the betterment of the planet and society at large. In order for towns and cities to respond and adapt they must start to weave in new layers. It is important that this uses the rich tapestry of existing buildings, both historic and modern. In addition, green open spaces should be the foundation for this transformative overlay of new stitching and connective threads. Applying careful approaches such as, curation, blending and shaping to struggling or tired building stock will bring diverse, exciting, and truly mixed-use environments that can begin to form the towns and cities of the future.
and demanding a new way of valuing real estate. Like our new conscientious citizens, they seek to make a difference by focusing on the following areas: • Environmental impact – save the planet, sustainability, carbon reduction, net zero. • Ethical consciousness – knowing that the sourcing & morals of everything are the best - from food, to clothes, to buildings to energy is sourced ethically. • Societal betterment – neighbourhood and community, diversity and inclusion. • Wellness – Better health, fitness, nutrition, appearance, sleep, and mindfulness. Paul Firth is Associate Principle at CallisonRTKL.
TONY OWENS CUNDALL
2. THE NEW CONSUMER
In this technology-driven world, the consumer has been enabled to do everything differently. The new consumer is moving from needing ‘stuff’, to demanding experiences. They make conscientious purchases and care about community and creativity and individualism. They want to customise. They want to rent everything that represents their new, now and next. There is a dramatic shift in the way they use buildings and spaces. Through their digital overlay, now they can seamlessly have what they want, when they want it and how they want it. This new mindset demands a blended mixed-use environment in which you buy shoes where you go to exercise. A home that you work in. A workplace that you live in. A library where you get a health check. The demand is for a healthier, balanced, flexible lifestyle that delivers experiences and memories within a cultural and authentic place. 3. NEW VALUES
Over and above the physical environments that people are now looking for to suit their lifestyle, Generation C are placing a new emphasis on the value of their own impact on the planet. Governments, funders and institutional investors alike are committing
Facilitating the transition to a low-carbon economy
T
he COP26 summit is an opportunity for the parties to commit to the goals of the Paris Agreement and the UN Framework Convention on Climate Change. Since the 2015 Paris Agreement, many countries have made commitments on climate action, and many have committed to reach Net Zero emissions by 2050. Most of the global community have agreed to work together to limit global warming to well below two degrees, and to adapt to the impacts of a changing climate and to make finance available to assist with the
COMMENT
transition from fossil fuels to alternative energy sources. The International Energy Agency predicted that carbon emissions would reduce by just 40% by the middle of the century based on current progress. Significant investment is required to facilitate the transition to a low-carbon economy. Scaling up investments to finance the transition from fossil fuels to renewables, as well as smart power networks, energy efficiency measures, and electrification in sectors including transportation, buildings, and industry, will be required to transform the world's energy systems. According to the International Energy Agency, worldwide energy investments are currently over $2tn per year, or 2.5% of global GDP (IEA). To achieve net zero CO2 emissions by 2050, this must climb to $5tn, or 4.5% of GDP, by 2030 and remain there until at least 2050. The bulk of this money will go towards decarbonising electricity generation and infrastructure and to make power networks better suited to much higher volumes and variability of renewable energy. Without a global climate policy and a joint commitment by all, today’s minor emitters will develop into significant emitters as their populations and incomes rise. These are also the countries that are typically most hit by the effects of climate change, making transition costs more difficult to bear due to rapidly rising energy demands and limited financial flexibility to finance green projects. Green or climate finance to fund emissions reduction investments in developing countries would allow the burden to be more evenly shared and help the global economy achieve net zero emissions. China, the EU, Japan, Korea, and the United States have all pledged to achieve net zero emissions by the middle of the century, yet the current energy crises in some of these regions suggest that the transition from fossil fuels will not happen in time. Investment in renewable energy projects is essential if the Paris Agreement commitments are to be achieved. As the world starts to recover from the pandemic, it must now tackle climate change and make the commitment to change for everyone’s future. The alternative cost is unimaginable. Tony Owens is technical director at Cundall.
MADHAV DHAR
ZĀZEN PROPERTY DEVELOPMENT
Looking at Dubai’s real estate market in Q2 2022
P
eople were sceptical about how Dubai’s real estate market would recover after the pandemic. Supply was at all-time highs, people were losing jobs or having salaries slashed and the tenant default rate was unpredictable. All this resulted in a 12% drop in rent and left owners worried about the future of the market. As lockdown ended and 2020 came to an end, we witnessed an unexpected surge in the Dubai real estate market. This was because the world acknowledged and witnessed the UAE government's response and management of the pandemic, the excellent work of the entire healthcare industry, the successful vaccination drive and how every citizen and resident positively contributed to the betterment of the UAE community. Of course, the long-awaited Expo 2020 opening and the improved laws for foreign investors also contributed to the surge in real estate investment. This combination allowed for rapid growth resulting in $36.86 billion in real estate transactions as of November 2021. Let’s look back and see how we got here, the trends observed, and what to expect going into 2022: THE NEED FOR SPACE
As a result of the lockdown, people started to value bigger spaces. This resulted in a demand for villas and townhouses as well as larger apartments. The secondary villa and townhouse market saw a 15% increase. Within the apartment segment, buyers are now looking for two and three-bedroom units versus studios and one-beds.
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MORE END-USERS
More end-users came into the UAE market as the supply of ready stock was high, tenants were looking for more space and mortgage rates were and are at all-time lows. Owning a home became more viable. This will continue into 2022 as prices normalise from all-time highs in 2021. Foreign investors will also continue to realise that, pegged against other leading international cities, rental returns in Dubai, even in a down market, are considered strong, averaging between 4 to 5% net. Add to that the low-price entry point for freehold properties, high capital appreciation and low mortgage rates, it continues to be a no-brainer as an investment destination. LUXURY HOMES SKYROCKETED
Travel restrictions and constant lockdowns globally caused many high-net-worth individuals to move to Dubai to take advantage of the city's infrastructure, business environment, amenities, and ease of life. As a result, luxury property boomed in 2021, with investors buying a second home in Dubai or moving their base completely. These investors focused on real estate assets in the Palm Jumeirah and Emirates Hills and are now even looking at areas like Business Bay and Jumeirah Village. MODERN COMMUNITY LIVING
Many organisations will stick to a hybrid working model. Consequently, buyers will still require space, facilities and amenities to entertain, raise a family and work from home. Developments that provide community-like amenities without sacrificing connectivity will benefit. ENVIRONMENTAL RESPONSIBILITY
As the UAE announced it will be hosting the UN's climate change summit, COP28, in 2023, governments, corporations and individuals alike are becoming increasingly more aware of their responsibility towards a sustainable future. With buildings in urban cities contributing almost 40% of worldwide carbon emissions, it is now a responsibility for all property developers to put sustainable solutions at the heart of the development process, and for governments to put in place legislation and incentives to push sustainable development opportunities, in line with achieving net-zero by 2050. Madhav Dhar is Co-founder and COO, ZāZEN Property Development. MEConstructionNews.com | March 2022
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EVENT REVIEW
EVENT REVIEW
Bentley Systems
Connecting the Virtual and Physical Worlds Big Project ME recaps the events of the Construction Digital Twins Webinar – How to get Time on Your Side, which was presented by Paul King, solutions director, Construction at Bentley Systems
O
n February 16, 2022, Bentley Systems and Big Project ME held a webinar that focused on Digital Twins and how the technology is changing the construction industry by connecting the physical and virtual worlds together. Over the course of the hour-long discussion, Paul King, solutions director, Construction at Bentley Systems, shared insights on how digital twins not only synchronise
work and improve visibility on projects for all stakeholders, but also help the teams building the projects to make sense of the right data, at the right time, across the project’s entire lifecycle. Given the scale and variety of construction challenges facing the industry (ranging from internal issues such as data transparency, talent management, adoption of new technologies, and the utilisation of resources correctly, through to external obstacles such as fragmented value chains,
March 2022 | MEConstructionNews.com
extensive subcontracting, competitive pressures and complex portfolios) King asserted that digital twin technology and its correct deployment technology was vital to the future of the sector. He added that poor communication and project information are two of the main causes of rework on construction projects, with workers often wasting time searching for project data and resolving avoidable issues. During the discussion, King touched upon a key point of project
data being unstable or unusable, which leads to poor decisions being made. Expanding on the theme, he added that construction is one of the least digitised industries on the planet, with old processes used in the field, and old IT systems used in the office. “Recent reports by FMI have found that workers waste, on average, two days a week searching for project data and resolving avoidable issues. Poor communication and project information are the cause for nearly
EVENT REVIEW
half of all reworks, with a quarter of all project data unusable.” Therefore, in order to change the industry for the better, King suggested that there needed to be a reshaping of regulations, while contractual frameworks needed to be amended to reflect the change in how the industry can use and deploy technologies. Most importantly, he asserted that there needs to be an improvement in the procurement and supply chain management. “Rethink design and engineering processes, improve on-site execution, infuse digital technology and advanced automation, and reskill the workforce,” he said, adding that as a software provider, Bentley has found that its 4D processes have saved – on average – four weeks off the schedule for every eight months of construction time. “Our mission at Bentley is to leverage our software and services to drive impact through the world’s infrastructure, improving the quality of life for everyone. As a software company, our environmental footprint is relatively small, but our environmental handprint, through the infrastructure software and services that we provide, is substantial. And that empowers our customers to realize infrastructure outcomes that are more sustainable, predictable and resilient,” he stated. King also touched upon how technology is changing a company’s competitors, with frequent small jumps made in work processes and technology usage, while processes and systems are tested for shorter periods, and the risk of failure is managed as part of the development process. “The way to get ahead is to get started,” he said, adding that the most transformative way for the industry to adopt technology is to educate and inform itself. However, King pointed out that the transformation can be hard, with only 16% of digital transformations improving performance, and that success rates can be as low as 4%. He explained
that this was either because some companies and employees are not ready for the change, do not want to accept it, or perhaps there is no experience in house for those wanting to change their ways. This is why the best way for the industry to transform is to educate itself on the advancement of construction technology. “Infrastructure digital twins are helping to address three big themes that affecting the construction industry right now,” he said. “The first is market disruption, which is driving firms to plan, manage and execute their projects better. Most construction firms have had very low margins for many years, but low margins leave almost no room for error, and firms are facing supply chain constraints, overseas competition, and increasing complexity. “Also, COVID hasn’t gone away. Talent shortage is another pressing problem. We simply don’t have enough people entering the industry, and companies find it
Workers waste, on average, two days a week searching for project data and resolving avoidable issues. Poor communication and project information are the cause for nearly half of all reworks, with a quarter of all project data unusable”
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hard to retain them because of competition,” he continued. Secondly, he pointed out that digital technology is changing how construction firms operate. “Smart project management makes it possible to make better decisions about managing labour and materials on a project. Real-time progress monitoring provides forward-looking insights to better control activities, and smart scheduling tools provide a clear competitive advantage. “Robots are also starting to appear on site. From simple line marking machines, to brick-laying devices, to robot dogs performing inspections. Artificial Intelligence is also starting to have an impact. During construction planning it’s enabling predictive design, optioneering, virtual reality, and construction logistics planning. On site, it’s enabling cloud-hosted connected data environments that foster collaboration and process vast quantities of real-time data,” King said. Finally, he stressed on the immensity of the global infrastructure pipeline and how it is crucial for the industry to accelerate its adoption of technology, so as to fulfil the demands being placed on it. “Governments are beginning to make up for years of underinvestment in roads, bridges, and water systems. Around the world, government COVID recovery strategies are allocating billions of dollars to funding infrastructure projects. But the industry has a limited number of people to support them. Therefore, it’s crucial for the industry to accelerate its adoption of technology so we can start to do a lot more with a lot less,” he stated. “This is an interesting time to be in the construction business. COVID-19 has forced us to work efficiently and differently. There are large projects in the pipeline coming up, and these advanced technologies will make work easier,” King concluded. MEConstructionNews.com | March 2022
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EVENT REVIEW
March 2022 | MEConstructionNews.com
EVENT REVIEW
39
A Day on the Greens Recapping the events of the 2022 edition of the annual Big Project ME Golf Day, which was held at the Trump International Golf Course
T
he Trump International Golf Course in Dubai played host to the 2022 edition of the Big Project ME Golf Day. More than 70 construction professionals took part in the annual event for a day out on the greens, with great weather to boot. The day-long golf tournament took place over 18-holes and featured on-course competitions and networking in a relaxed and fun-filled environment. Targeted at senior executives and decision-makers from some of the region’s most prominent developers, consultants and contractors, attendees at the
Big Project ME Golf Day 2022 came from companies such as ALEC, AMAALA, Trimble, Omnium, McLaren, Lootah, STO, Black & White Engineering and Nakheel, amongst many others. After a long day of fierce but friendly competition, the winning team, with a total net score of 54.8 was Andre Naude, Jacques Lemmen, Francois van Niekerk and Jean Van Loggerenberg. They won Trump Green Fee vouchers. Coming in a close second was Wayne Taylor, Graham Atherton, Mark Sayer and James Sayer, who won a brunch at the Observatory Bar and Grill. Rounding out the top three was the team of James
Goodman, Ben Goodman, Paul McNeill and Russell Owen. The winner of the Longest Drive Competition on hole nine, sponsored by Driver Trett, was James Sayer, who won an AED1,000 voucher from The Trump. Raz Islam, managing director of CPI Trade Media told Big Project ME that he was delighted with the turnout on the day, especially given the uncertain times and challenges caused by the pandemic. He thanked the sponsors and participants for their support in making the event a success and praised the events team and Trump staff for ensuring a safe and well-organised tournament for participants.
“A special thank you is due to our sponsors and partners without whom it would not be possible to hold the Big Project ME Golf Day 2022: ALEC, Autodesk, Black & White Engineering, Driver Trett, Hill International, Johnson Arabia, Kairnail, Lootah Real Estate Development, Mirage, Observatory Bar and Grill, Omnium International, Safelift, SketchUp and STO.” “And of course, thank you to AGMC for providing an opportunity to our competitors to win a luxury car. Hopefully, someone will be able to win it next time! Congratulation to the winners, and see you all at the next event!,” Islam remarked.
SPONSORS AND PARTNERS
AGMC
MEConstructionNews.com | March 2022
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PROGRESS REPORT
Final update
30% completion reached on Azizi’s Park Avenue projects in MBR City Developer says that revamped procurement processes has resulted in faster construction and higher quality levels
A
zizi Developments, the UAE-based real estate developer, has announced that it has made rapid progress – reaching 30% across its three premium off-plan projects, Park Avenue I, II and III, at MBR City in Dubai. Featuring a total of 401 units – 372 residential and 29 retail
March 2022 | MEConstructionNews.com
units – the three buildings come with their own fully equipped gyms and swimming pools. Giving an update on the project, CEO Farhad Azizi said: “We have made significant progress with Park Avenue I, II and III, crossing the 30% milestone. Our revamped procurement processes have resulted in faster construction and substantially higherquality levels that are sure to excite our valued investors and end-users.” “The Park Avenue developments are in great demand from local and foreign investors because of the sophisticated, affluent, and contemporary lifestyle they provide through their build quality, strategic location and exceptional amenities,” he stated. Azizi added that work is progressing at pace, with the structure of Park Avenue I now 57% complete, while Park Avenue II and III’s
Revamped processes Azizi’s revamped procurement processes has resulted in faster construction and higher quality levels.
401
Number of units across the three buildings
structures have reached 63% and 71% respectively. It added that total manpower has been increased to 280 to further accelerate construction. “Built around the concept of connected serenity, Azizi’s Park Avenue project is the epitome of a strategic, easily accessible and convenient location that is its own little getaway within the city,” he explained. “Surrounded by greenery and within proximity to Azizi’s planned community, Riviera, the upcoming Meydan One Mall, the Meydan Grandstand, The Track, and only a 10-minute-drive to Dubai Mall and Downtown Dubai, these contemporary homes are ideally located for those wanting access to some of the city’s most vibrant points of interest while also being able to bask in the tranquillity of their own community with panoramic views of Dubai’s skyline,” he concluded.
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From 29 March
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Virtual VE Summit Now entering a new era of significant upscaling, the Construction industry has a raft of never-before-seen tools at its disposal for creating strong stakeholder returns. The VE Summit highlights these key change-makers: the synergy between Value Engineering and Sustainable Construction; and how Data – the industry’s untapped resource – can improve the safety, productivity and quality of regional development.
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There is a focus, too, on Artificial Intelligence and how I.O.T tech can transform on-site protocols with new standards of excellence. But are we leveraging these advances enough and fully understanding their worth? Plus, for those brave enough to innovate, the advances in prefabrication and modular construction offer dramatic savings in cost and time.
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