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THE BUSINESS OF CONSTRUCTION

Reimagining Education

BIG PROJECT ME TOURS CITIZENS SCHOOL, AN EDUCATIONAL FACILITY THAT AIMS TO REDEFINE HOW STUDENTS DEVELOP

Economic transport of concrete with the HTM 1204 XL Optimize your profit through the high loading capacity. With Liebherr, you benefit from high quality and perfect service. www.liebherr.com

Concrete Technology

CONTENTS

May 2022

ANALYSIS

FEATURES

INSIGHT

Event Review

Comments

Final Update

The Briefing

Facilio discusses its successful Series B funding round, while Bentley Systems shares how it brought light to a remote part of India

The Big Picture

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

Market Report

JLL reviews the Q1 2022 performance of the UAE real estate market

Analysis

In Profile PNC Menon

Gavin Davids interviews PNC Menon, chairman of Sobha Realty, about the developer’s ambitious targets for 2022

Site Visit Citizens School

Big Project ME goes back to school with Jason Burnside of GAJ Architects, for a firsthand look at the impressive Citizens School

Big Project ME recaps the key talking points and issues raised at the Virtual Value Engineering Summit, which was held on March 30, 2022

The industry’s leading experts share their thoughts and opinions about the construction industry

Dar Al Arkan tops out the $218m Urban Oasis residential tower

David Clifton of Hill International provides an update on his outlook for the KSA construction sector

MEConstructionNews.com | May 2022

WELCOME

Introduction

Back to school

s someone who’s lived in the UAE for most of my life, I have distinct memories of times before the accelerated growth spurt in the late 1990s and early 2000s and that disparity was really brought home while writing this month’s cover story. While I was growing up in Fujairah, the school I went to was initially just a collection of ramshackle portacabins and low-rise concrete buildings, housing just a few hundred students, while our ‘sport field’ was a one-size-fits-all, multipurpose sandy expanse that doubled as the school bus loading zone at the end of the day. When it rained, it also became our venue for water sports, thanks to its stubborn refusal to drain for weeks. Football was always a treacherous enterprise as an erroneous slide tackle could see you disappear into a cloud of dust or unearth an undiscovered patch of gravel – always a painful discovery! Given that context, it was quite amazing to tour Citizens School with GAJ Architects and see how far along the idea of building

May 2022 | MEConstructionNews.com

and designing school buildings has come. It was fantastic to see the care and attention to detail that has been lavished on ensuring that students have the best educational experience, while being housed in a stateof-the-art building that wouldn’t look out of place anywhere in the world. Furthermore, the school aims to become a functional and necessary part of the community around it, and its founders fully intend for it to become a hub for the various neighbourhoods around it, particularly with regards to its educational clinic, which will be open to the public outside of school hours. This is an interesting approach to take, given the tendency for Dubai to operate in silos – communities here tend to be fairly selfcontained, with their own schools, amenities and retail outlets – so it’s nice to see a different vision. I wonder if it’ll catch on? As we move into May, I’m getting increasingly excited about our upcoming Energy and Sustainability Summit, which is being held on June 21, 2022, at St Regis – The Palm. It’s shaping up to be a great event with some top-quality speakers confirmed and more to come. If you’re interested in taking part, do drop me a line!

Gavin Davids

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

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THE BUSINESS OF CONSTRUCTION

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Reimagining Education

BIG PROJECT ME TOURS CITIZENS SCHOOL, AN EDUCATIONAL FACILITY THAT AIMS TO REDEFINE HOW STUDENTS DEVELOP ON THE COVER

Big Project ME vists the Citizens School in Dubai to see how the 43,000sqm campus is helping redefine education

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FEATURED

CONSULTANT

WORLD CEMENT ASSOCIATION CALLS FOR MENA CEMENT FIRMS TO DECARBONISE

NPCC led consortium awarded major carbon capture and storage project contract

CONSULTANT

Mahmoud Abougabal joins HKA’s Expert Services Team as Director

EXPERTS: Overcoming resistance to new technology CONSTRUCTION

Akar Technical Services completes $14.9m contract work at Dubai Properties’ Villanova in Dubailand

FLEET

RTA unveils five-year sustainability plan

CONSTRUCTION

Kuwait’s HEISCO and Mitsubishi Power emerge as lowest bidders for 2,400MW Sabiya Power Plant project May 2022 | MEConstructionNews.com

READERS’ COMMENTS

INSIGHT: Facilio reveals its data-driven vision

It is a welcome intervention that The World Cement Association (WCA) has called upon cement firms in the MENA region to take decarbonisation action, ahead of COP27 in Sharmel-Sheikh, Egypt and 2023’s COP28 in Abu Dhabi, UAE. However, it is worth noting that this is as much of a balancing act as decoupling from fossil fuels and will have a global impact. Even I was surprised to read that cement manufacturing in the MENA region makes up 15% of the world’s total production. It is great to see that the UAE and Saudi Arabia at least seem to be taking this seriously have both made pledges to reach net zero half way through this century but will they find themselves priced out of the local market if the construction industry is able to find cheaper imports from neighbouring countries? Financially and ethically it makes sense to reach a region-wide agreement on how cement is produced, backed-up by tariffs on high carbon imports – and possibly even penalties for firms that choose their bottom line over a greener future. Name withheld by request

Date

14 Sept

Venue

Website

Dubai

digitalconstructionsummit.com

DUBAI / UAE

Digital construction tools to improve delivery and operations in the smart build environment 14 Sept 2022

About the

Our

Digital Construction Summit

Mission

Welcome to the evolved, dynamic, and rebranded Digital Construction Summit, formerly the ME BIM Summit, which will take place in September 2022. A host of highly curated panel discussions, seminars, workshops, an interactive exhibition and networking activities will be put together to connect leading minds to examine the ongoing evolution of the construction industry in the middle east.

Our mission as the media arm of the industry is to continue the education, process and support of digitisation by creating a network filled with informative content and knowledge.

Over the last nine years, the ME BIM Summit has grown from strength to strength and as the digital transformation of the regional construction industry continues to gather pace, the scope of the event has grown beyond BIM and embraced all aspects of the digital construction journey.

Complimentary

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

Content

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

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PRESENTED BY

THE BRIEFING

Digitisation

Datadriven Vision MIDDLE EAST

Following a successful Series B funding round, Facilio outlines its plans for the digital transformation of the built world May 2022 | MEConstructionNews.com

n February this year, Facilio, the property operations software platform provider, announced that it had raised $35 million in Series B financing, led by Dragoneer Investment Group, with participation from Brookfield Growth and existing investors Accel India and Tiger Global Management. Founded in 2017, Facilio offers a unified software platform that leverages an AIled predictive engine to help real estate portfolios digitise processes and optimise their property operations. Replacing the traditional and siloed software landscape that has frustrated the market for decades, the solution aggregates data from multiple, disconnected systems across portfolios into an integrated, cloud-based platform, helping operations and maintenance [O&M] teams become data-driven and agile. Furthermore, the platform encompasses a suite of SaaS applications for maintenance [CMMS/CaFM solutions]

and operational visibility, sustainability, and remote equipment performance monitoring. This modern approach allows customers to reduce operating costs, exceed sustainability targets, and elevates customer experiences. Having emerged as a next-generation leader in the $50 billion commercial real estate-focused operations software market, Facilio has established a broad, global customer-base and is rapidly gaining market share with faster-thanmarket sales growth across multiple geographies. It’s growing list of portfolioscale deployments includes commercial office buildings, retail chains, hospital systems and higher-education campuses. As the company takes the next step forwards in its evolution following its Series B financing, Big Project ME speaks to Prabhu Ramchandran, founder and CEO of Facilio. The company is well positioned to accelerate digital transformation in the built world and

Leading the way Facilio has emerged as a next-generation leader in the $50bn commercial real estatefocused operations software market.

$35m Total amount Facilio raised in Series B financing

THE BRIEFING

lead the industry’s transition towards IoT-led connected buildings, he says. Now, however, the financial backing from the investors will it enable it to help more companies to reach success through a predictive, connected model. “We will be using this investment for strengthening our UAE and Middle Eastern customer facing teams – specifically our sales and support teams,” he says. “We’ll also look at using it to expand into more Middle Eastern countries, and to scale our research and development teams to launch more products. “There is huge frustration in the market with current outdated and silo-ed tools. Facilio has been working towards the vision of moving the industry towards data-driven, connected and mobility enabled solutions. This funding will help us execute our vision at scale and bring in more innovation for the market.” In the wake of the pandemic, real estate related businesses are heavily dependent on reopening properties safely, while still operating with efficiency and agility. Therefore, the need for technology that enables them to work with remote operations capabilities, reduced operational costs and improved workforce efficiency is crucial, Ramachandran points out. “Our vision is to bring in connected, data-driven, intelligent solutions for real estate operations. This is aligned with new market needs, and we believe that these solutions will provide real estate players with the platform to improve their profit margins and meet the needs of their customers.” It is this vision that attracted investors to finance the company’s Series B financing round, with Josh Raffaelli, managing partner at Brookfield Growth stating that as customers of Facilio, they have seen first hand the benefits the platform brings. “What Prabhu and the team are building isn’t merely a great product portfolio, but a movement towards data-led property operations. The company is writing the blueprint for how modern real estate portfolios will operate in the next decade and beyond. “Technology-led real estate operations are shaping into a lucrative

market. Industry stakeholders are increasingly taking stock of the many benefits, such as operational agility, productivity, instant ROI, and superior CX, that software-led platforms can unlock seamlessly,” Raffaelli explains. “Such possibilities, for relatively older buildings with disconnected systems, are a major boost. So, the case for value in the market makes itself. And by investing in Facilio, Brookfield intends to gain exposure to this attractive market.” He adds that Facilio’s value proposition is its ability to deliver demonstratable results as advertised,

Delivering results Facilio’s value proposition is its ability to deliver demonstrable results as advertised.

Established dominance Facilio’s founders aim to strengthen its established dominance in the UAE real estate market.

pointing out that not many companies can say the same, especially in a longvalue-chain asset class like real estate. “Most importantly, Facilio boasts market dominance in the UAE, which we believe to be a trailblazer in the larger Middle East and a byword for innovation globally. A testament to that is ICD Brookfield Place, a 990,000 sq.ft landmark office project in Dubai’s Commercial Business District that recently launched with Facilio’s cloud platform to deliver a connected model of operations. “The company’s inherent strengths, combined with the allure of the markets that it operates in, made a clinching case for funding. Together, we intend to pursue excellence in real estate operations and maintenance and set unprecedented standards.” Ramachandran adds to this by highlighting the importance of technology-led building operations to the UAE’s ambitions of becoming a digitally empowered nation, and a leader in the development of smart cities. “Data-drive and connected operations lays the foundations for the real estate industry to building upon and implement AI-powered solutions and evolve into larger smart cities solutions. The value is multi-fold in terms of improved agility and productivity, reduced operational costs, meeting sustainability goals, and elevating customer experiences,” he concludes.

MEConstructionNews.com | May 2022

THE BRIEFING

Delivering Light INDIA

Maureen Gallagher of Bentley Systems, showcases how digital twin technology helped deliver an ambitious project to deliver light to one of India’s most remote regions

May 2022 | MEConstructionNews.com

s part of India’s commitment to economic development in the northeast region, and to renewable energy targets aimed at quickly reducing carbon emissions, the Indian government initiated the NER-II Transmission Limited Project, a USD$25.5 million renewable energy initiative that will serve a population of over 30 million residents in India’s most remote areas, aiming to improve reliability of the power supply, reduce intermittency, and accelerate the penetration of renewables in the northeast region. The Ministry of Power awarded the project to Sterlite Power Transmission, a leading global developer of India’s energy transmission infrastructure projects. The scope of the project includes developing transmission lines that span 448 kilometres, as well as design and construct a 400-kilovolt/132 kilovolt

substation in the state of Tripura to evacuate gas-generated power across the region from the national grid. “Since gas is a natural balancer for renewable energy, connecting NER to the national grid is critical,” comments Sudanshu Tripathi, head of marketing at Sterlite Power. “As the only substation delivering much-needed power to Tripura, it was crucial that construction be completed quickly. Considering the importance of the project for the local region, Sterlite Power had to avoid delays in delivering the substation. “Additionally, situated at the foothills of the Himalayas amid dense forest subject to heavy rains and flooding, the project presented complex geographical and environmental conditions, compounded by a tight timeline and an indigenous population resistant to change,” he adds. RESOLVING CHALLENGES To overcome these challenges, Sterlite

Complex challenge The project posed several complex challenges, including geography, environment, tight timelines and a resistant indigenous population.

448

The scope of the project includes developing power lines that span 448km

THE BRIEFING

Power needed to implement efficient design and construction, accurate information flow among stakeholders, prompt and informed decision-making, and rigorous project monitoring. So, they searched for an accurate modelling solution that would deliver right-firsttime design. They required an integrated visual modelling environment where they could easily share information and detect and resolve clashes early in the design process to meet the short schedule. However, their traditional 2D design methods for substation planning had minimal data-sharing potential and did not support the design team’s needs for detecting potential clearance problems between electrical components and support structures. Their current conventional software had limited capability in terms of managing interdependencies and linking design, planning, and construction works. Additionally, it limited their ability to provide real-time visualisation of construction progress and facilitate efficient stakeholder communication and resource planning. The company recognised that these inefficiencies posed enormous risks in the substation timeline, prolonging inspection, stakeholder approval, and handovers. “We realise the conventional approach has limitations in terms of design optimisation, which ultimately leads to delay during project execution,” states Mayank Srivastava, manager of Sterlite BIM program. DIGITALISING WORKFLOWS To effectively coordinate design and construction, gain approval from state authorities to lay the transmission lines, and meet the project deadline, Sterlite Power chose to adopt digital twin technology and establish an open, connected data environment. They switched to OpenUtilities Substation and ProjectWise to overcome the inefficiencies of conventional design, establishing a 3D collaborative modeling environment to streamline design workflows, facilitate accurate information sharing, and enable early clash detection among structures and equipment. Using this technology, they developed a digital component library that provided

Sharing information Working in a visually connected data environment with digitalised workflows has provided seamless and accurate information sharing.

15%

Integrating SYNCHRO for planning helped deliver the project over a month early and achieve a 15% return on investment

traceability and accountability for design, exporting these component models as symbols to develop the entire substation model layout and ensure proper connection among the equipment. Working in a visually connected data environment with digitalised workflows provided seamless and accurate information sharing among the team and stakeholders to overcome the design challenges and achieve right-of-way clearance, securing permission from local authorities to lay the transmission lines. To further refine design and enhance construction planning, Sterlite Power adopted 4D BIM technology using SYNCHRO, performing real-time, virtual construction monitoring and simulation. Using the software allowed for robust planning, linking design and scheduling processes and then mapping all project activities to the 3D model for greater visibility into the project plan. Furthermore, the digital model helped visualise the impact of design changes, facilitating accurate, data-driven decisions and avoiding construction errors on site. “Building this model enabled us to maintain interdependencies in an effective manner. It also provides greater visibility of the construction plan in a 3D environment with the project team, which helped them make important decisions quickly,” explains Srivastava. The team also generated a detailed reality model from drone-captured images, which helped them optimise substation layout and increase efficiencies.

SETTING NEW BENCHMARKS Using the technology to digitalise workflows and establish a connected data platform, Sterlite Power saved a total of $14,438 in resource hours and reduced the project schedule by more than one month. Working in an integrated modelling environment enabled data-driven decisions and early clash detection that reduced rework and saved $30,189. Through real-time virtual construction monitoring, they achieved a 15% return on investment. The integrated 3D and 4D BIM and digital twin solution resulted in paperless workflows, established traceability, minimized information loss, and enhanced collaboration among all stakeholders. By engaging with the community and local state authorities, they gained approval to lay the transmission lines, a breakthrough for the team as prior development projects failed to do so. Through innovative use of Bentley’s cutting-edge technology solutions, Sterlite Power has set new industry benchmarks for sustainable energy solutions. They plan to extend BIM workflows to asset management and utilise the models for more efficient substation operations and maintenance. Upon completion, the new substation and transmission lines will bring reliable power to 30 million residents of the northeast region while taking India closer to its goal of reducing carbon emissions through reliance on renewables. MEConstructionNews.com | May 2022

THE BIG PICTURE

01 UNITED STATES

03 UNITED KINGDOM

Global construction equipment sales hit new record in 2021

GFH’s UK subsidiary sells Tesco Distribution Centre for $35m

Global construction equipment sales rose 10% in 2021 to a new record of 1.196 million units, according to Off-Highway Research. The newly updated Global Volume & Value Service report revealed that all major world markets, apart from China, experienced growth last year. The most robust growth was seen in North America (up 25%) and Western Europe (up 22%), while emerging markets, excluding India and China, were up 24%. It said a 5% drop in demand is expected this year, yet 2022 would still show the second highest sales volume on record.

02 UNITED STATES

Radisson Hotel Group eyes net-zero by 2050 The Radisson Hotel Group has committed to decarbonising its business by setting aggressive emission reduction targets to be net zero by 2050, in line with the SBTi NetZero Standard. The ‘Radisson Hotel Group’s 2021 Responsible Business Report’ referenced the goal and outlined its latest sustainability targets in line with a strategic five-year plan. The plan is said to include accelerating the implementation of the crossindustry Pathway to Net Positive Hospitality and Hotel Sustainability Basics initiative, and to reaffirming the group’s commitment to people, community, and planet as an employer.

Bahrain-based GFH Financial Group has announced that its UK subsidiary, Roebuck Asset Management has concluded an off-market sale of a Tesco Distribution Centre for more than $135 million. The 540,000sqft temperature-controlled centre was originally developed by Tesco in 2010. It serves in excess of 400 supermarkets and convenience stores. The sale marks the conclusion of an extremely successful hold period of Roebuck, who acquired the asset for $94 million in October 2017, for a Korean consortium.

04 FRANCE

06 NETHERLANDS

Egis acquires Waagner Biro Bridge Services Group

Netherlands Pavilion commences deconstruction as part of its circular concept

Egis, the France-based international company active in the consulting, construction engineering and mobility service sectors, has announced a major expansion in its capabilities in the Middle East, with the acquisition of the Waagner Biro Bridge Services group of companies. The strategic buy includes Waagner Biro Bridge Gulf and Waagner Biro Bridge Fabrication in Dubai., Waagner Biro Bridge Contracting and General Maintenance in Abu Dhabi and Waagner Biro Bridge Qatar. The group has been in operation in the GCC for more than 50 years.

May 2022 | MEConstructionNews.com

05 SPAIN

ACCIONA develops new software for concrete manufacturing

ACCIONA, through a collaboration of its R&D+i Department with its Roads and Bridges specialised business unit, has announced the development of new geometric control software for the manufacturing of concrete segments used for bridges constructed using the Match Cast method. The methodology involves manufacturing concrete segments using the previous segment as a mould and a geometric reference to ensure a perfect fit when the segments are assembled.

Following Expo 2020 Dubai, the Netherlands Pavilion has commenced the deconstruction, continuing its circular concept. Designed by V8 Architects as a temporary circular climate system, a biotope in the desert where visitors can experience natural phenomena a such as condensation, solar energy, photosynthesis, fungus production and temperature transmission. It is the physical representation of the Netherlands’ core message: connecting sustainable solutions in the areas of water, energy and food.

01 02

THE BIG PICTURE

09 08

08 SAUDI ARABIA

07 SWITZERLAND

FIDIC launches new Digital Transformation Committee

A Digital Transformation Committee has been launched by FIDIC (International Federation of Consulting Engineers), as part of its ongoing push to boost its structure and global external affairs and stakeholder relations capabilities. The committee will monitor and identify changes in digital technology and techniques to help futureproof FIDIC’s products and services delivery, such as for FIDIC contracts, and will also Identify issues or trends in the digital space that could be potential disruptors.

SWPC announces shortlist of prequalified firms for 1,392km RiyadhQassim IWTP project Saudi Water Partnership Company (SWPC) has announced that 20 developer/ developer consortiums have been prequalified for the Riyadh-Qassim Independent Water Transmission Pipeline (IWTP) project, which will have a transmission capacity of 685,000 cu m per day once complete. A total of 31 companies have expressed their interest in the project, of which, 19 were Saudi firms.

09 UNITED ARAB EMIRATES

DCV MENA celebrates first female employees to attain heavy truck licence in UAE Daimler Commercial Vehicles MENA (DCV MENA) believes the achievement of its first two female employees to obtain a Heavy Truck (HT) license in the UAE will have long-lasting ripple effects across the commercial vehicles industry. Mandy Chan and Meliza Gilroy obtained their Heavy Truck (HT) license after completing a rigorous training course at Belhasa Driving School. DCV MENA added that its dedication to pushing change in the sector is reflected in its approach to workplace diversity and accountability.

MEConstructionNews.com | May 2022

THE BIG PICTURE

14 12

10 16

10 SAUDI ARABIA

12 QATAR

SAMA amends articles implementing Regulations of finance laws

Refurbishment of Somerset West Bay Doha completed

The Saudi Central Bank (SAMA) has amended several articles of the Implementing Regulations of the Finance Laws in Saudi Arabia. The amendments include the decision of the Minister of Finance to revoke Article 4 of the Implementing Regulation of Real Estate Finance Law. The change means real estate finance companies are now allowed to practice financing activities without stipulating the prohibition of combining Real Estate financing and other forms of financing activities.

May 2022 | MEConstructionNews.com

11 BAHRAIN

Diyar Al Muharraq completes infrastructure works Diyar Al Muharraq has completed infrastructure works for the main roads on the Southern Island within its integrated residential city in Bahrain. Concluded construction works included the extension of electricity, water, sewage, rainwater, telecommunications and irrigation networks. The infrastructure development work was implemented in two phases. In phase two, the work included paving and road lighting works which were delivered in six months. The junction was upgraded from a three-way to a four-way traffic light and four roundabouts were added.

The Somerset West Bay Doha hotel has reopened following a full renovation according to Ascott Limited. The revamp is said to be in line with the group’s expansion plans for the region. Owned by Katara Hospitality, Somerset West Bay Doha opened in 2008 with a total of 200 units comprising two- and threebedroom apartments and was primarily focused to cater to long-stay guests. To align with traveller needs, the revamped property offers 228 units in one-, two- and three-bedroom apartments for solo, leisure and business travellers.

THE BIG PICTURE

14 UNITED ARAB EMIRATES

13 UNITED ARAB EMIRATES

Mahmoud Abougabal joins HKA’s Expert Services Team in Dubai

HKA has recruited Mahmoud Abougabal to its Expert Services team based in the Dubai office. Mahmoud has 15 years’ regional experience working in the construction industry. He also has a bachelor’s degree in architectural engineering, a master’s degree in project management, construction and infrastructure and a master’s degree in construction law and dispute resolution. Mahmoud is also a member of the Chartered Institute of Arbitrators.

ADNOC awards SNC-Lavalin fouryear advisory and engineering services contract Abu Dhabi National Oil Company (ADNOC) has awarded a four-year advisory and engineering services contract for its offshore operations power project to SNC-Lavalin. The scope of work includes the design review of the converter stations, the submarine cables, integration with the onshore and offshore grid, as well as reviewing the implementation plans for HSE, Quality Control (QC) and Quality Assurance (QA) of contractors.

15 UNITED ARAB EMIRATES

RTA unveils five-year sustainability plan A five-year sustainability plan for 20212025 has been endorsed by Dubai’s Roads and Transport Authority (RTA). The move is part of the authority’s strategic goals and objectives and are based on environmental, societal, and economic drivers of sustainability. The step is taken as part of RTA’s efforts to improve maturity levels of sustainability and become one of the most sustainable government entities in the field of roads and transport worldwide. The plan is compatible with Dubai’s local policies, highlighted by Dubai Plan 2030 and Dubai Urban Plan 2040, as well as global policies.

17 MALAYSIA

NPCC-led consortium awarded major FEED contract in Malaysia 16 OMAN

Maysan Properties awards contract for Phase One of Khimji Ramdas in Oman

Maysan Properties has awarded a major contract to business conglomerate Khimji Ramdas for the construction of the first phase of Maysan Square. The mixed-use project is taking shape in the Duqm region of Oman. A part of an Integrated Tourism Complex Project (ITC), Maysan Square comprises 20 buildings to be constructed across five phases within Oman’s first Lifestyle Business District located within the Special Economic Zone of Duqm.

Petronas Carigali has awarded National Petroleum Construction Company (NPCC)’s consortium with Technip Energies a major FEED contract, for what is billed as one of the world’s largest carbon capture and storage (CCS) projects. Abu Dhabi-based NPCC said its work on the Kasawari gas field off the coast of Sarawak in Malaysia marks its entry into Southeast Asian market. Technip Energies is a leading engineering and technology company for energy transition, with leadership positions in Liquefied Natural Gas (LNG), hydrogen and ethylene.

18 JAPAN

Japan’s Tadano to launch world’s first electric rough-terrain crane by end of 2023 Japanese manufacturer, Tadano has announced its plans to launch the world’s first electric roughterrain crane by the end of 2023. Currently in development, the crane will be able to drive to the jobsite and complete all lifting operations using battery rather than diesel power to deliver zero-emissions operations. Those expected to benefit most are workers operating in congested and noisy urban areas, completing lift projects at night and operating indoors.

MEConstructionNews.com | May 2022

MARKET REPORT

Industry outlook

UAE Real Estate Market Q1 2022 Review UNITED ARAB EMIRATES

Expo 2020 Dubai and influx of international visitors supports improved market performance, JLL report finds

upported by the Expo event and returning international visitors, the UAE’s hotel market performed strongly in the first quarter of this year, according to JLL’s Q1 2022 UAE Market Overview report. The uplift in overall performance was primarily driven by beachfront and luxury developments, which have been benefitting from strong leisure demand. Also, both upper-upscale and midscale hotels saw

May 2022 | MEConstructionNews.com

higher average daily rates (ADR). “Post-pandemic, operators may look towards adopting a more robust revenue management strategy to help owners achieve a higher bottom line. The resultant short-term impact may be a small dip in performance, but it should ultimately lead to improvements in the longer term,” said Khawar Khan, head of Research for the Middle East, Africa & Turkey region at JLL. In the office market, building on the momentum seen in the final quarter of last year, rents in well-managed quality office buildings continued to perform well. In Dubai, average Grade A rents in the CBD were up 9% year-on-year to about AED 1,840 per sq. m. per annum in Q1 2022. On the same basis, Grade A rents in Abu Dhabi rose by 5% to an average of AED 1,650 per sq. m. per annum. Financial and technology firms remain the main drivers of demand for Grade A office space, with a majority of leases being signed by occupiers active across those sectors. “Flexible workspaces are seeing strong interest from new market entrants, as

well as some corporates who are taking a “wait-and-see” approach before signing long leases elsewhere due to the evolving market situation,” added Khan. In the residential market, construction activity continued in earnest as improving sentiment and rising demand from investors & end-users alike provided developers with renewed impetus to deliver projects. Over the remainder of this year, an additional 42,000 units are expected to be completed. Improving tenant demand for residential units broadly underpinned the annual increase in rents in February, of 11% in Dubai and 3% in Abu Dhabi In the retail market, certain retailers, particularly in the F&B segment, reported robust revenues – exceeding the levels seen prior to the COVID-19 pandemic. On the other hand, consumer spending on luxury goods remained constrained and this was reflected in a broadly flat performance for this segment in Q1. Overall, the easing restrictions and ongoing recovery in tourism continued to provide some respite for the UAE’s retail sector.

MARKET REPORT

DUBAI RESIDENTIAL SUPPLY Q1 2022

657,000 42,000

ABU DHABI RESIDENTIAL SUPPLY Q1 2022

11%

2022 Expected Deliveries

Total Stock

274,000

Average Rental Rates

Total Stock

DUBAI RETAIL SUPPLY Q1 2022

4.6m Total Stock (sq m GLA)

334,000

9,000

Average Rental Rates

2022 Expected Deliveries

ABU DHABI RETAIL SUPPLY Q1 2022

-5%

2022 Expected Deliveries (sq m GLA)

2.9m

Average Rental Rates

Total Stock (sq m GLA)

214,000

Average Rental Rates

2022 Expected Deliveries (sq m GLA)

Post-pandemic, operators may look towards adopting a more robust revenue management strategy to help owners achieve a higher bottom line. The resultant short-term impact may be a small dip in performance, but it should ultimately lead to improvements in the longer term” DUBAI OFFICE SUPPLY Q1 2022

90,000

3.9m

Average Rental Rates

2022 Expected Deliveries (sq m GLA)

Total Stock (sq m GLA)

DUBAI HOTEL SUPPLY Q1 2022

144,000 12,000 2022 Expected Deliveries

Total Keys

77%

Total Keys

ABU DHABI HOTEL AVERAGE DAILY RATE 2021-2022 2022 ADR

US$108

2021 ADR

US$150 90

300

US$92 240

180

Occupancy YT Feb 22

2022 Expected Deliveries

US$222 120

75%

7,000

32,000

Occupancy YT Feb 22

2022 ADR

Average Rental Rates

2022 Expected Deliveries (sq m GLA)

ABU DHABI HOTEL SUPPLY Q1 2022

DUBAI HOTEL AVERAGE DAILY RATE 2021-2022

Source: JLL, STR Global

124,000

150

Total Stock (sq m GLA)

120

9.1m

ABU DHABI OFFICE SUPPLY Q1 2022

MEConstructionNews.com | May 2022

ANALYSIS

Saudia Arabia

Drive for Development: Is Saudi Arabia Moving Forward?

SAUDI ARABIA

David Clifton of Hill International says that the outlook for Saudi Arabia has shifted after a tumultuous first quarter around the globe May 2022 | MEConstructionNews.com

022 started with a major imbalance between all forecasters and analysts’ expectations from the end of 2021 and the real environment. This is of course driven by the act of war in Ukraine by Russia. But what that has meant for the global, regional, and Saudi economy is a compounding effect of some expected results of the pandemic. We now see inflation on the move towards 10% globally and a forecast of just under 9% for KSA for 2022. This is driving a range of monetary and political policy. Some of which

has been expected – the reining in of quantative easing (QE), and now the increasing central bank interest rates which is driving the cost of capital up. For the fortunes of the Kingdom, we’ve seen oil rise to $120 per barrel at a point, which from a budgetary perspective is significant. The 2022 budget was predicated on c.$60 per barrel and as an indicator, a sustained $120 price would generate $732m of extra revenues per day (although both figures it should be noted are based on Brent Crude, not Saudi Heavy Crude which trades at a significant discount. Further of note is the major

78% Increase

in construction awards in Saudi Arabia from 2020 to the end of 2021

ANALYSIS

FIGURE 1: SAUDI ARABIA INFLATION RATE, 2011-2023 %

TRENDLINE

7.5%

5.0%

2.5%

0.0%

-2.5%

2011

2012

2013

2014

supply deals concluded regularly was a with Eastern powers that won’t show as a barrel price until published by ARAMCO) – which is a positive for the Kingdom in terms of deploying new revenues for development of the economy. The price pressure seems likely to continue even after the strategic reserve release by the USA. How OPEC+ acts will be interesting to observe, but in practice, the increase of production, should it happen, will take 3 months to meet the market. Looking at the KSA development market, we’ve seen a c.78% increase in awards from 2020 to the end of 2021. However, we’ve only seen an industry personnel increase of just under 1.5%, so we are now in the realms of forward capacity issues, underpinned by continuing input price pressures. What we are and will continue to see in addition to capacity is capability

2015

2016

2017

constraints that exist in the market in KSA. Resources are challenged due to the major pandemic and contract completion trend in 2020 and 2021. This has meant a significant backlog issue for the supply chain, with most other major projects scheduled for completion in 2022 and 2023, the industry faces an issue in terms of resource risk and skills gaps should delays occur in awards in this year. Further factored to that is the working capital requirements of any major new scheme. Cost of capital is rising quickly and combined with historical cashflow issues in the industry due to non or late payment (and thus the finance credit risk), any attempt to grow or maintain the status quo will be a challenge. Compounding the capital situation in the supply chain has been the lack of cost awards for COVID related

2018

2019

Backlog issues Due to the pandemic and contract completions in 2020 and 2021, resources are challenged in KSA, creating a backlog issue for the supply chain.

10% Global

increase in inflation, with a forecast of just under 9% for KSA for 2022

2020

2021

2022

2023

delays. Time has been common, but no further revenue to cover working costs has been forthcoming in most instances. The uncompensated delays further constrain cashflow and the ability to service projects effectively. With the Russian invasion driving market uncertainty and the subsequent reaction, the prices of materials have again spiked, although in a much shorter timeframe than in the pandemic. We’ve seen landed rebar prices decrease by 38% from December to January and then rise by 52.5% in the following month and a further 3% the following month. Other commodities and materials have had a similar trend. This is currently and will for the foreseeable future make the pricing and delivery of projects much higher risk. When combining this the high oil price, which in most circumstances is good economical for the region,

FIGURE 2: SAUDI ARABIA MAIN CONTRACT AWARDS ($ BILLIONS) AND PERCENTAGE CHANGE, 2015-2024 SERIES 1

SERIES 2

TRENDLINE

$80

100%

$60

50%

$40

$20

-50%

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

-100%

MEConstructionNews.com | May 2022

ANALYSIS

FIGURE 3: SAUDI ARABIA CONSTRUCTION INFLATION, 2016-2024 %

TRENDLINE

12.0%

8.0%

4.0%

0.0%

-4.0%

2016

2017

we see continued pressure on material prices and a cost-of-living issue which is likely to drive salaries higher – on top of the scarcity of individuals as the market bounces back from the pandemic recession. This is likely to drive the industry into the red unless sensible client mitigation measures and negotiations occur. Which would reverse the intended increase in capacity in the Kingdom as bankruptcy occurs across the supply chain. It is well known that the turn upwards in an economy is the key driver to business failings as organisations are stuck with lump sum contracts in a rising market. In practice, markets almost always overreact in one direction or another, but the price spikes in input prices

What we are and will continue to see in addition to capacity is capability constraints that exist in the market in KSA. Resources are challenging due to the major pandemic and contract completion trend in 2020 and 2021” May 2022 | MEConstructionNews.com

2018

2019

2020

will take many months to even out and is very dependent on future sanctions. E.g., The EU reducing oil and gas purchases from Russia (it is still spending over $250m per day with Russia) and OPEC’s future commitment to bridging the supply gap which at present seems highly unlikely due to Saudi Arabia and UAE’s opposition to supply increases. When looking at awards for this year in the Kingdom, the forecast is revising upwards due to the recent announcements around internal investment and also the sustained higher oil price. This is also likely to see an increase in the compound annual growth rate (CAGR) due to rising prices in materials, labour and a natural supply

2021

Forecast revision The forecast for KSA is revised upwards thanks to internal investments and the sustained higher oil prices.

$732m Extra revenues generated per day due to oil price rise

2022

2023

2024

and demand issue in the capacity of the industry. To date we have seen Q1 2022 yield awards in line with expectation at c.$10.5 billion. This trend is expected to continue throughout the year. The chances of acceleration are limited by capacity and a historical lag in tendering to awarding projects. This is still a growth trajectory and 2023/2024 is likely to see upgraded forecasts based on a likely maintained higher oil price, a requirement to provide economic stimulus and a move towards greater introduction of alternative finance (PPP style projects) and market privatisation of government companies and the subsequent realignment of those organisations to make them more efficient and quicker to market. The outlook for the industry for 2022 is still positive, but the challenges are significant. This can be seen in the response of the Kingdom’s largest potential customer (PIF) and their efforts to acquire stakes in the supply chain to shore up supply for the giga projects, as well as the increased revenue streams. Attracting and retaining talent and securing supply chain capacity will be critical factors that dictate project success this year (and potentially for some time), combined with efforts to mitigate the input price risks. These are the challenges the industry faces, but with a healthy pipeline of work ahead, it is without question better than the alternative or the actual in the last few years.

Date

21 Jun

Venue

St. Regis - The Palm

Website

eassummit.com

S T. R E G I S – T H E PA L M / D U B A I / U A E

Putting innovation into practice: trending alternative energy solutions and the vanguard of sustainability 21 June 2022

About the

Energy & Sustainability Summit The transition to a cleaner, greener, and more efficient future With a vast array of building techniques, alternative energy solutions and hi-tech materials dedicated to delivering carbon neutrality, the Age of Sustainability is upon us. The Energy & Sustainability Summit is a live one-day event, that looks at the realities of the MENA region’s Energy Transition, and how the construction industry is putting sustainability into practice.

Make

Connections Meet representatives from the industry and engage with a captive audience of decision makers and influencers, who are involved in purchasing or specifying products and services. Our sponsorship packages offer you a wide range of opportunities adapted to your needs and the level of visibility that you want to reach.

Complimentary

The Summit focuses on critical developments in the Alternative Energy space, examines key initiatives in the quest for Net-Zero, and seeks to understand what it means to be Sustainable in the Construction Sector.

Networking

Get in touch

This event presents you with an opportunity to interact and connect with regional industry decision makers and influencers. There are several innovative ways to sponsor and participate from speaking opportunities to branding, interactive live polls to presentations. Contact us now for detailed information.

Content

Sponsorship

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

Jude Slann | +971 4 375 5714 jude.slann@cpitrademedia.com

Opportunity

Raed Kaedbey | +971 4 375 5715 raed.kaedbey@cpitrademedia.com

Event Partners BRONZE SPONSOR

SUPPORTING PARTNER

PRESENTED BY

IN PROFILE

Sobha Realty

Ambitious Targets BIG PROJECT ME SPEAKS TO PNC MENON, CHAIRMAN OF SOBHA REALTY, ABOUT WHY THE DUBAI-BASED REAL ESTATE DEVELOPER IS INCREASING ITS SALES TARGETS FOR THE YEAR, AND WHAT THAT INDICATES ABOUT THE HEALTH OF THE MARKET

| MEConstructionNews.com | MEConstructionNews.com October May 2022 2021

MEConstructionNews.com | May 2022

IN PROFILE

ubai’s decision to be one of the first cities in the world to open its borders since the pandemic has proved to be a boon for the emirate’s real estate sector, with total transaction volumes in Q1 2022 reaching 19,009 – the highest total ever recorded in the first quarter of the year. According to a recently released CBRE report, year-on-year in the year to date to March 2022, the total transaction volumes were 75.1% higher, with off-plan and ready transactions increasing by 114.9% and 52.9% respectively. Furthermore, during the first quarter of the year, secondary market transactions accounted for 56.1% of total transactions, with off-plan transactions accounting for 43.9% of the total. With the city also introducing further incentives to attract investors, such as additional provisions for Remote Working Visas, a Virtual Working programme, and an overhaul of the visa residency system, it is no surprise to see increasing demand in

Record performance Sobha Realty recorded $1bn in sales in 2021, and expects to achieve $1.6bn in 2022, PNC Menon says.

$1bn Amount made in sales in 2021

the sector, with both foreign and resident investors showing interest in a wide variety of properties across the country. As a consequence, one of Dubai’s most well-known real estate developers, Sobha Realty, recently announced that it has increased its sales target by 50% from 2021. The real estate developer says that it aims to achieve a sales target of USD$1.6 billion in 2022, thanks to a steady flow of investments, with 50% of foreign and 50% of resident investors showing interest in its offerings. In fact, according to figures shared by the developer, Indian, Chinese and Emirati nationals make up the top three investors in Sobha Realty, followed by

Russian, British and Nigerian nationals. Capitalising on this massive interest, the developer says that it plans to launch a $4 billion development in the third quarter of this year. Furthermore, work on its flagship project, the eight million square foot waterfront community, Sobha Hartland, is at the 60% completion market, it adds. Construction on the mixed-use development is underway in three phases, with a offering of luxury apartments, villas and high-end townhouses available for investors. Therefore, in order to better understand how the Dubai-based developer intends to build upon its success in a resurgent real estate sector, Big Project ME spoke to PNC Menon, chairman of Sobha Realty, about a variety of topics, including its plans for the year ahead, the shifting dynamics of the sector post the pandemic, and the need to be adaptive to change. Sobha Realty recorded $1 billion in sales in 2021 – what were the market factors that contributed to this success? This achievement, we believe, demonstrates the investors’ faith and confidence in our abilities. A critical contributor to this success is the government support we have received to adapt to the growing real estate market. Also, demand for real estate has remained strong, particularly from

As the UAE and the rest of the world align towards global sustainability targets over the next three years, we firmly believe that communitybased sustainable development will also become more important” May 2022 | MEConstructionNews.com

IN PROFILE

international territories and countries, which had previously been short-term investors. However, we are witnessing more of these investors emerge with the goal of eventually owning a second or third home in Dubai. This is bolstered by global travel restrictions and lockdowns which prompted many high-net-worth individuals to relocate to Dubai to take advantage of the city’s infrastructure and favourable government policies, resulting in a surge in the luxury property market segment in 2021.

International interest Dubai’s luxury home market is expected to thrive and maintain its momentum in 2022 due to the rising demand and interest from international investors.

Relocation destination Many high-net-worth individuals relocated to Dubai to take advantage of the infrastructure and favourable government policies in 2021.

Sobha Realty recently announced ambitious sales targets for 2022, what makes the company so confident about achieving these targets? Due to the rising demand and interest from international investors, Dubai’s luxury home market is expected to thrive and maintain its high momentum in 2022. Furthermore, the future of the emirate’s luxury home market appears bright following Expo 2020 Dubai, as it is brimming with new opportunities for buyers and investors.

We expect the luxury property market to retain its upwards trajectory in 2022, with more upscale buildings and projects on the rise. Consequently, the sector will attract more wealthy foreign investors, which can benefit the market, especially as demand from Ukrainian and Russian buyers will increase as well. Additionally, visa reforms, expatriatefriendly policies, and high-profit margins continue to draw investors from all over the world, making Dubai a lucrative real estate investment market.

MEConstructionNews.com | May 2022

IN PROFILE

Our properties have drawn significant attention from investors, who are seeking waterfront properties with all the luxury amenities and benefits. What are the market segments that have contributed most to your success and what does this interest tell you about how market sentiment and demand is changing?

May 2022 | MEConstructionNews.com

The prime districts continue to outperform the market, as we have seen. While we expect most districts to recover, prime districts have seen a much sharper rise due to its limited availability and high demand, with investors from different parts of the world showing interest in the luxury residences. In 2021, we saw a surge in demand for luxury villas and penthouses, with buyers demanding higher quality properties with larger layouts and sizes. The pandemic, lockdowns, and social

Prime demand Prime districts continue to outperform the market, with a sharper rise in market performance due to limited availability and high demand.

Space is key Larger layouts and sizes have become key considerations for clients in the wake of the pandemic, Menon says.

restrictions have elevated the need and value of a good home, resulting in a strong shift in preference towards waterfront properties, since 2020. Last year, the demand for large beachfront villas for sale and rent in Dubai was also high. Keeping this in mind, how do you anticipate Dubai’s real estate market changing in the coming months and years – particularly as a result of the pandemic and Expo 2020 Dubai?

IN PROFILE

international buyers. At Sobha, we have witnessed promising interests from investors in Israel, China, India, and Nigeria, in addition to Sobha Hartland is also garnering investor interests from several nationalities including Emiratis, Indians, Chinese, Europeans, and Africans. The mix of nationalities changes each year, but 50% of our investors are residents. We have further witnessed a steady flow of investments, with 50% of foreign and 50% of resident investors, respectively.

The real estate sector’s opportunity lies not only in physical structures, but also in tenant health and well-being, social sustainability, inclusion and diversity, and accessibility for which Dubai offers plenty” The real estate sector’s opportunity lies not only in physical structures, but also in tenant health and well-being, social sustainability, inclusion and diversity, and accessibility for which Dubai offers plenty. The UAE market will see an increase in users, and tenants will want more space, as owning a home has become more feasible. Moreover, foreign investors will continue to notice that Dubai’s rental returns, even during a downturn, are considered strong, averaging four to five percent. Additionally, when you factor in low-price entry points for freehold properties, high capital appreciation, and low mortgage rates, it remains the clear choice of investment destination for buyers. As a result of the impact caused by the pandemic, house buyers are seeking more amenities in their communities that enable them to entertain, raise families, and work from home, without sacrificing connectivity. As the UAE and the rest of the world align towards global sustainability targets over the next three years, we firmly believe that community-based sustainable development will also become more important – alleviating climate concerns, such as targets for zero net carbon output, energy efficiency, and adoption of renewables. As many adapted their strategies to simply survive during the crisis, we used the opportunity to rethink our

priorities, to stay ahead of the curve and avoid becoming reactionary in the face of economic turmoil. In turn, this translated into the successful launch of our new Waterfront District and its first tower, Waves. You’ve mentioned the growing interest from expat investors in Sobha Realty projects? Has there been a change in the demographics of investors in recent months? Will that impact project plans in any way? Dubai’s reputation as a safe destination to live and work continues to grow, resulting in increased demand from

Ahead of the curve Sobha Realty used the pandemic as an opportunity to rethink strategies and adapt to the market, PNC Menon says.

19,009

Total transaction volumes in Q1 2022

Finally, what are your plans for the coming year and what does your project pipeline look like for the years ahead? Our current priority is the timely completion of the Sobha Hartland master development, which includes townhouses, luxury apartments, and high-end villas, spanning across eight million square feet of prime land in the heart of the city. At present, Sobha Hartland has reached a 60% rate of completion as previously mentioned. It is our goal to complete the project by 2025 and ensure timely handovers. Our current plans also include a continued focus on the UAE, particularly Dubai, and we will continue to expand our Emirate land bank and develop high-quality, unique homes for buyers seeking luxury investments, over the next decade.

MEConstructionNews.com | May 2022

| MEConstructionNews.com September May 2022 | 2021 MEConstructionNews.com

SITE VISIT

Citizens School PROJECT NAME: Citizens School PROJECT CLIENT: Al Zarooni Emirates Investment PROJECT DESIGNER: GAJ Architects PROJECT CONTRACTOR: Intermass PROJECT LOCATION: Al Satwa, Dubai, UAE

Education Redefined BIG PROJECT ME GOES ON A TOUR OF THE CITIZENS SCHOOL, AN UPCOMING EDUCATIONAL PROJECT IN DUBAI THAT HAS BEEN DESIGNED BY GAJ ARCHITECTS FOR AL ZAROONI EMIRATES INVESTMENT AS A CAMPUS THAT WILL REDEFINE HOW STUDENTS LEARN AND DEVELOP THEIR ABILITIES | August | May 2022 MEConstructionNews.com MEConstructionNews.com 2021

SITE VISIT

owards the end of March this year, local newspapers were abuzz when the Citizens School claimed that it would be the first school in the Middle East to allow the use of cryptocurrencies to make payments for tuition fees, while in April, the school announced that it is launching a start-up studio to develop and fund student-led ideas, in partnership with the global education platform, 8billionideas. These innovative and forwardthinking ideas are par for the course with the Citizen School. Located in Dubai’s Al Satwa area, the UK curriculum school says it is determined to move away from established educational norms. Scheduled to open in September this year, the school, which has been designed and developed by Al Zarooni Emirates Investments, intends to ‘reimagine education’ and help position Dubai as a global hub of learning excellence. Designed to present learning through a new lens, the school and its 43,000 square metre campus aims to provide students with educational experiences that focus on

May 2022 | MEConstructionNews.com

the whole growth of a learner, with each child’s unique requirements factored into that experience. Not only will this approach empower children with choices to explore themes, expand interests and determine the routes they want to take to reach their full potential, it will also equip them with a rich and connected bank of knowledge and skills that are relevant for the 21st century, says Hisham Hodroge, CEO of the school. “Our curriculum uses the British curriculum as a framework, and it is enhanced with elements from the Citizens Tapestry, together forming part of our bespoke curriculum and putting the child at the centre of their education

Building blocks Phase One of the project focuses on the primary school, nursery, sports complex and playing fields.

More than a school Once complete, the school will form part of the surrounding community with its clinic open to the public.

journey, identifying their passions and building upon their strengths. “The school is designed to integrate with its surroundings and it’s important that the school is perceived as part of the community. We are all about creating an extension to the surrounding community into our school, and one of our core pillars is strengthening that relationship between students, parents, and the overall community around us.” However, in order to achieve this vision, the school campus needed to be built to reflect these lofty ideals. Therefore, Al Zarooni Emirates Investment appointed GAJ Architects to prepare a design for the campus, which was to be built on a plot that had previously housed two schools that were demolished to create space for it. The project is being developed in two phases, with the first phase preparing for its September launch when Big Project ME visited the site, alongside Jason Burnside, partner and head of Education Design at GAJ Architects. He explains that Phase One of the project includes the foundation stage, primary school, sports complex and nursery, each other their respective playing fields. Phase Two includes the development of the secondary school, which will located within the same plot. Once completed, both phases will accommodate a total of 2,600 students. “The difference with the Citizens School is that from the beginning, it was the vision of the client to create something that would offer more than just a school. There is a great philosophy behind the school, which is looking at equality for all students. You might think that’s obvious, but actually in schools today, not every student learns at the same rate, and in the same way as others,” he tells Big Project ME during the tour. “So, the ethos behind this school was to create a very immersive learning environment, so that students who were not grasping concepts as quickly as others could actually be mentored within the school. That led to a philosophy that runs through the design, and also through the organisation of the school, where we have a diagnostics centre as well. “In future, what will happen – when the school is a full capacity – is that there

SITE VISIT

will be a clinic function within part of the building. Here, children who need to be assessed in particular areas of their learning can come as part of the school, and it will be just seen as normal. There will be no stigmatism around it and they can transition between the diagnostics and teaching areas seamlessly. In the evenings, this area then becomes available to the public, and parents who have concerns can come and have access to the centre’s specialists and diagnostics.” It is because of GAJ’s expertise in designing educational institutions with a difference that Al Zarooni came to them, Burnside says. He explains that the firm has been involved with the project for nearly five years and were even involved

choosing the site for the project, as they looked to fulfil the client’s vision, doing all of the design up to tender documentation. Intermass, the Sharjah-based contractor carried out the delivery of the building, while another AOR oversaw the construction phase, he adds. “When we started designing the school, we didn’t start with the idea that we would have half a hospital and half a school, it had to feel like there were no boundaries to it, so students didn’t feel like they were being observed. “The design is very subliminal, you move from space to space, and you’ll see this in the reception, which bleeds into the library, and so on. You might ask why we did that, but we’re trying to show

Subliminal design The school has been designed to feel like there are no boundaries within sections, and students can move from space to space.

43,000 Total area of the campus, in square metres

that learning should be fun, and that it’s something you should have access to all the time, and that you shouldn’t need to go into a room called a ‘library’ to pick up a book. If you’re interested in reading, you should be able to have access to it.” These concepts clearly come to life in the school’s entrance, where visitors first encounter the key spaces of the school – the reception, the parent’s café, the lobby, and the learning stairs. Situated at the entry, the reception and parent’s café have been designed to create a welcoming, relaxed and immediate contact point for all visitors, with the café emphasising the school’s philosophy of wellness and healthy eating and lifestyle.

MEConstructionNews.com | May 2022

SITE VISIT

Furthermore, the lobby area comprises of elements that inspire to engage and socialise, such as soft seating and use of natural materials to bring a sense of warmth. Indoor plants will also be prominently featured so as to foster a connection to the outdoors and promote wellness. However, the heart of the school will be the wide interactive staircase – or learning stairs as they’re called – which will create a sense of connection with the rest of the campus, leading up to the library, and offering views of the playing fields and classrooms. It has been purposefully designed to encourage interaction and enhance the sense of community and shared principles,

May 2022 | MEConstructionNews.com

Inspiring engagement GAJ Architects have utilised natural lighting and materials to create spaces that inspire engagement and socialisation.

2,600 Total number of students once completed

Burnside points out, adding that the massive skylight above it will flood the area with natural daylight, which will also promote wellness and connectivity. The school’s primary library has also been built under this skylight, creating an open and naturally lit area for students to enjoy a range of experiences. The space has been designed to encourage interactivity, with multiple levels of challenges for different ages and abilities, bookshelves at various heights, childsized tables and chairs, soft seating, reading nooks and showcase displays. An inclusive and collaborative learning experience is also promoted, Burnside says, explaining that acoustics, natural materials and neutral colours

have been deployed to create a calm setting for focused study. The design of the foundation learning zones, as well as the classrooms and corridors, carry this theme forward, with the emphasis on getting the children excited and stimulated about learning and exploring. A ‘hideand-seek exploration zone’ has been developed, while various playful and flexible elements have been installed in the classrooms and corridors to encourage interactive learning. Private reading nooks have also been installed to encourage students to focus and concentrate, while on the ground floors, each of the classrooms open up into protected play areas.

SITE VISIT

What is important is to structure their learning, guided by the teachers, in a way that they’re seeing some benefit. They don’t want to be stuck in a classroom for three or four hours a day” “You’re dealing with very young children and their attention span is probably not as concentrated as it would be as you start to move through their education. What is important is to structure their learning, guided by the teachers, in a way that they’re seeing some benefit. They don’t want to be stuck in a classroom for three or four hours a day.” Keeping in mind that the school will initially open its doors only to children at the junior school level, Burnside says that one of the challenges GAJ encountered while designing the masterplan was to plan out how to incorporate an active school, while construction work on the senior school section continues to take place. “The whole idea of the school was really to look at the efficiency of getting all of these different functions organised in a masterplan that would allow the client to operate the school initially with only the lower school, and then construct the senior school section. But at the same time, make sure that within the offering for the first three or four years, they’ve got access to the full sports facilities and so on,” Burnside says. “It was really about thinking through the whole process and how the contractor can actually come in and construct the school, whilst it’s in operation.” Planning the design with the future in mind was a key part of the design process, Burnside highlights. With technology becoming increasingly prevalent in the education sector, he says

that Citizens School has been designed and built with connectivity in mind, keeping in mind trends in education. “COVID has just accelerated the trend. It was already there, digital learning was already starting to come in, but no one really anticipated the switch from digital learning in the classroom to digital learning at home, but most schools have had a policy of students bringing their own devices. That was slowly coming in ahead of the pandemic hitting, so students these days are more prepared than we were for technology (to be part of the learning experience). “So, for us in terms of the architecture and design around these services, we’ve

Translating a vision Jason Burnside and his team at GAJ have delivered on the client’s vision, creating an amazing campus for students, parents and the community..

Connected spaces The campus has been built with digital connectivity in mind, as students and teachers will be utilising technology to learn and teach, respectively.

had a few schools come back to us (on previous projects) and talk about future proofing in terms of the bandwidth. That was one of the areas that schools struggled to cope with: Wi-Fi access. So now, any of the new schools that we do, have CAT6 cable installed, and for some schools in Saudi that we’ve handed over, they actually have CAT7, even though that’s way ahead of what’s necessary – but it’s not going to change. We’re just going to become more data consuming. “Therefore, we made sure that every corner of the building (Citizens School) has 10MBps access. We think that this is great, because the client has obviously seen and identified a potential trend and is willing to put that into the budget,” he continues as the campus tour comes to an end. With the campus set to welcome its first intake of students in September for the new academic year, Hisham Hodroge says he can’t wait for the community to experience what Citzens School will offer. “It has been a great reaction, people have been amazed by the campus and our approach to the design of the school, which is about the provision of flexible learning environments, collaborative learning spaces, and an overall facility that is geared towards enhancing the holistic learning journey of our children. “We didn’t have a detailed brief for this project, but we had a vision, and GAJ have been able to translate that and we’re extremely proud of the result”.

MEConstructionNews.com | May 2022

EVENT REVIEW

Value Engineering

The changing face of Value Engineering On 30th March, the virtual Value Engineering Summit showed how advances in AI are creating a broader mix of capabilities for Value Engineering, ensuring there’s scope for a new generation of priorities

alue Engineering means creating value and finding an optimum balance between quality and expense. In today’s highly competitive Construction environment, there’s never been a better time to explore its benefits and see how it can enhance a business’s competitive advantage, literally from the first conception and ‘get-go’ of a project.

These were the crucial factors addressed by the Value Engineering Summit on 30th March - a livestreamed webinar featuring presenters and panelists committed to enhancing project value and who work on every aspect of the development chain. SMART SOLUTIONS AGAINST A CHALLENGING BACKGROUND

In his keynote presentation, David Clifton, vice president - Business

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Development, Hill International (Middle East), looked at the larger economic picture. With the world arguably heading for a median international inflation rate of around 10%, and the cost of re-bar rocketing upwards by 23% in the last two months, Value Engineering isn’t about making ‘ad hoc’, project-by-project contingencies: rather, it must reflect the overall performance of the organisation and its ability to weather a climate

of rapidly rising inventory costs. Given these factors, can a business, for example, build bridges between client expectations and its own performance requirements? The key elements of any Value Engineering programme will also inevitably reflect not only the basics such as the conversion costs of imported goods, but the competitive advantage it will gain from more sophisticated (and better inflation-protected)

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supply chain options. With the latter in mind, the rising cost of oil can quite easily, for example, jeopardise calculations that would have seemed rock-solid until quite recently: back in 2018, it was debated whether oil would ever again break the US$50 per barrel mark again. Now in 2022, prices regularly exceed US$110 per barrel… THE STORY OF THE NUMBERS

Given these factors, it’s critical for a business to know where it stands commercially on a daily basis and be able to ‘crunch the numbers’ in the ways that will provide correct and relevant data for any given Value Engineering initiative. These were the factors addressed in the day’s next VIP presentation, by Carolina Fong Guzzy, Co-Founder/ Digital Engineering Manager, Accienta. She explained the role of effective data capture and analysis and how to transition out of antiquated processes to create a properly informative digital dashboard. She explained how the retrieval of relevant data also directly impacts the quest for more elaborate aspects of added value, such as sustainability. Yet, the data and mechanisms

driving these elements generally won’t be achievable with the IT capabilities that most businesses have, and this may require the organisation embracing a full-on process of Digital Transformation. Carolina explained how Digital Transformation can be put into effect in the most practical ways and once operational, how it can influence the most basic perspectives from which organisations understand and see project delivery and - ultimately - value.

ISN’T SUSTAINABILITY THE OPPOSITE OF VALUE ENGINEERING?

There is an abiding view that Value Engineering can’t afford to entertain higher aspirations, whether they involve, for example, sourcing exotic materials or sharpening visual appeal by bringing on board international design specialists. The quest for Sustainability is all too often a classic case in point. While sustainability need not

necessarily add to a project’s bottom line, there is still a perpetuating ‘urban myth’ that believes qualities such as sustainability are expensive luxuries that are best engineered out (not in). So, the Value Engineering Summit brought together an expert panel, combining perspectives from four very different disciplines. The title of the panel was ‘Why Sustainability and Value Engineering aren’t Enemies’, and the session featured: • Prakash Senghani, Head of Digital Delivery, JLL • Peter Docwra, Former Executive Director, G20 Summit Riyadh • John Shenton, Regional Contract Manager – GCC. for Averda • Aliyar Mufaris, Commercial & Tendering Department Head, Bainona Engineering Consultancy Comprehensively, the panel argued that in today’s world, sustainability has to be incorporated from Day One and - far from breaking the template - the cost optimisations it necessitates can quite harmoniously be part and parcel of the Value Engineering model. Peter Docwra, for example, argued that sustainability can

MEConstructionNews.com | May 2022

EVENT REVIEW

indeed be a core component in an integrated project management platform, and is something that clients (especially from government and public sectors) will now increasingly expect to see as a ‘given’. Therefore, even mentioning sustainability in a summarised client presentation is something that requires considerable forethought and precise planning - and there is simply no option other than finding sophisticated ways of budgeting for its practical requirements, even across a protracted life cycle. Meanwhile, Prakash Senghani urged everyone to remember that sustainability is a process, not a ‘fait accomplit’, and any Value Engineering model has to therefore be ambient and flexible, future proofed as necessary for evolving scenarios, liabilities and costs. He recalled Carolina Fong Guzzy’s remarks that availability of the right data is the only way to ensure that the company dashboard is capable of making the assumptions and predictions that formal and effective Value Engineering will necessitate. This point was amplified further by John Shenton, speaking about sustainability and public sector planning. What about, for

example, the ‘hidden’ aspects such as waste disposal and the lifetime value of the development itself? Or how well will a building’s external panelling weather and endure? Will transport systems have sufficient capacity, and do public areas allow for any interpretation of a post-pandemic ‘new normal’? Is the right data available for these assessments and how effectively have they been costed-in? These are all vital steps in making coherent Value Engineering judgements.

May 2022 | MEConstructionNews.com

Aliyar Mufaris then added the powerful comment that when it comes to competitive client pitches, the bar has never been higher: his company, Bainona, had built an outstanding record with government and the private sector by always expressly looking at the sustainability life cycle; being able to answer telling questions about the commercial returns on a property long after its ‘honeymoon’ season is over and is part-and-parcel of effective Value Engineering.

In the day’s anchor slot, Ash Toma, Regional Strategic Asset Management Director, Middle East, Atkins, focused on the role of smart management and data from an altogether fresh angle - explaining that advances in Artificial Intelligence (AI) are empowering completely new dimensions of input into Value Engineering equations. They are in effect lifting the bar in terms of the rigour and scope of analysis and thereby opening the door to fully costing-in and understanding more complex factors such as sustainability. He argued that opportunities of this kind are only available if business leaders are ‘data cognisant’, and moreover, without this attribute they can no longer hope to be competitive in client pitches. Companies need to re-create themselves around the ability to source and manifest the numbers; but more importantly still, they need to have a rigorous understanding of what they need the numbers to tell them. Once they have these answers, a company can build a properly integrated data platform: with this in place, it’s no longer the case that Value Engineering is an isolated exercise, but rather, the norm.

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Understanding the complexities of making Vision 2030 a reality 21 Nov 2022 | Live

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Work on a number of large-scale, iconic construction projects is well underway in the Kingdom of Saudi Arabia, as part of its Vision 2030 blueprint. While the Kingdom’s leadership aims to transform the country, it also wants to be mindful of what this transition means for its people, its culture and its environment.

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Therefore, as the GCC’s largest country moves towards a more diverse and sustainable economy, it is essential that the global construction industry equips itself with the knowledge and insight to grasp the unprecedented opportunities presented to them by Saudi Arabia’s transformation. This is why the Construction Intel Summit KSA is coming to Riyadh on November 21, 2022. The third edition, and the first live iteration of the Construction Intel Summit KSA aims to inform and educate attendees about the massive opportunities that remain across the Kingdom of Saudi Arabia.

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Industry insight

AHMED GHOBARA CALLISONRTKL

Home of Things and connectivity to shape the future of the Egyptian residential market

he brief for the home is changing. The need now is for productive living environments with the technological infrastructure to support residents. Consequently, a new era is driving hybrid lifestyles and hybrid working cities. In Egypt, 17 smart cities are being developed that will be totally reliant on technology. In addition to the smart cities, Egypt is working on several projects to increase the broadband coverage to remote areas in the country. This supports Egypt’s Vision 2030 which emphases the importance of increasing innovation for the development of more connected buildings and cities, driving national development, economically and environmentally. CRTKL has developed a number of projects in Egypt including the Children Cancer Centre in Cairo, the Mall of Egypt, Almaza City Centre, Cairo Festival City and its mall expansion. The residential market and the demands being placed on the home have changed. The need now is for places that are fluid, flexible and authentic. Across the Middle East region and in Egypt, people are demanding a more

May 2022 | MEConstructionNews.com

dynamic lifestyle offering that caters to new hybrid working styles and provides greater community and cultural connection. The rise of smarter buildings is leading to the development of smarter cities that are more connected and more efficient than ever before. Here are three new concepts are driving residential development: THE HOME OF THINGS The ‘Home of Things’ (HoT) refers to the physical objects within the home that are embedded with sensors, processing ability, software and other technologies that connect and exchange data with other devices and systems over the Internet or other communications networks. Innovative technology in a fully integrated HoT allows endless opportunities for improved home performance and convenience. Connected and controlled through a resident’s mobile device, the HoT could support amenities by tracking, measuring and improving personal energy usage and well-being. Biometric data gathered here could then be shared with in-house practitioners or resident nutritionists, counsellors, and other health professionals that could rotate through a new type of hyper-local medical office or telemedicine pods that are built into the offer. In Egypt’s new Administrative capital on the outskirts of Cairo, residents will use smart cards and apps to unlock doors and make payments and use the internet on public WiFi. Through mobile apps and data, citizens will be able to manage all their life affairs from their smart phones. THE BRANDED RESIDENCE – RESIDENTIAL MEETS HOSPITALITY MEETS HEALTHCARE New attitudes about health, wealth, and family are transforming an industry that formerly defined by medical care and home equity. To attract both the booming young and elderly populations, development is moving in a new direction towards brand residences and a lifestyle product that blends residential operations with a hospitality approach that is based on a professionally managed rental model. These models will focus on holistic health, community integration and mixeduse opportunities, incorporating wellness programs across education, exercise (both

instructor and technology led), health, nutrition and intergenerational connection. THE HYBRIDISED MODEL OR A ‘UNIVERSAL BUILDING’ There is a need for the new building typology to feature shared uses that come together to form a hub for a community of creatives, who blend living with working and socialising. The Universal Building allowing for flexible development strategies to take shape over time. With the ability to easily shift the program mix, this supports a city’s strategic goals in that it offers innovative housing and workplace options for an evolving and diverse community. It refers to a framework building with changeable systems, structure, and modules. This uniquely flexible platform can adapt program uses based on changing market needs. the column grid to carefully considered floor-to-floor heights, the building will easily shift between residential, office and social spaces. Ahmed Ghobara is a senior associate at CallisonRTKL.

LEWIS ALLSOPP

ALLSOPP & ALLSOPP

Positioning Dubai for the future

he approval of the virtual assets law and the establishment of the Dubai Virtual Assets Regulatory Authority is a step ahead for Dubai. The city continues to remain at the forefront of emerging technologies and aligns with how the world is developing.

COMMENT

By creating an authority and infrastructure to measure and facilitate the growth of virtual assets, the United Arab Emirates is keeping itself ahead of most of the world. The leadership of the country is always quick to react to the latest developments in business but always pays close attention to technology and innovation. Dubai is forward-thinking and always has been but I think we saw this as clear as day, when the Dubai 2040 Urban Plan was announced at a time when the world was still heavily talking about the COVID-19 pandemic and their recovery strategies, with some still heavily in the throws of dealing with the virus. The city’s leadership is always one step ahead and despite working through what the pandemic threw at them, they were able to execute the launch of the vision of the city in years to come. It gives residents and onlookers across the globe, immense confidence, therefore attracting investors, new companies, existing companies, professionals and families. The virtual assets law and the establishment of the Dubai Virtual Assets Regulatory Authority will have a positive impact on business start-ups, established businesses opening offices in Dubai, innovation, creation and so much more by giving consumers a chance to invest or purchase with cryptocurrencies. The real estate industry in Dubai has seen investors buying properties with cryptocurrency already. However, we are still a bit away from this becoming the norm. It is still very early days of virtual assets being used to buy real estate here in Dubai, however, it is encouraging to see that Dubai has a regulatory framework in place, which I’m sure will advance as we see more virtual assets being used in the city. As we move forward, I predict that we will see many aspects of the Dubai real estate industry becoming virtual. For example, title seeds. By digitalising these documents, the process of buying and selling properties could happen instantly rather than taking hours or days and could happen without both buyer and seller being present. This, I believe, is where Dubai is headed, and I see this happening in the not-so-distant future. Lewis Allsopp is CEO of Allsopp & Allsopp.

ALINA ADAMCO

METROPOLITAN PREMIUM PROPERTIES

Europeans drive Dubai’s secondary real estate market investment

t is no secret that Dubai’s real estate market is going through a boom. Consider this. According to data from the Dubai Land Department the city recorded transactions worth $408 million in a single day in April. In March, hundreds of property deals completed in a single day pushed the amount of real estate transactions to nearly touch AED2 billion. The start of Ramadan which is generally a slow period has also not had an effect. Dubai witnessed 2,012 real estate transactions worth $1.44 billion in the first week of Ramadan. The top end of the market has been the main driver for this phenomenal growth as transactions are up 30 per cent year-onyear, with 4,083 deals being recorded in January 2022 alone. The average property prices (per square foot) also witnessed an increase of 35.1 per cent during the month. The uncertainty in today's geopolitical climate is driving European investors, business owners and families to consider Dubai as a key business and lifestyle hub and real estate as a safe investment. Investors primarily from Germany, UK, Italy and France are snapping up ready properties as soon as they are put on the market and in some cases even before they are listed. This rise in demand has resulted in the secondary market heating up with prices surging over 15% in the past two months.

There has been a spike in the number of transactions for villas and townhouses, with a notable interest and high demand for waterfront/ shoreline property. These two segments are very much in demand right now. Seafront properties are seen as secondary residences and investments whereas townhouses and villas are popular with Dubai residents who are looking for a forever home. The most sought-after locations include Port De La Mer, Dubai Marina, Palm Jumeirah, JBR and Emaar Beachfront. Dubai had bounced back strongly from the pandemic and this level of sales was last seen in 2014. The government’s economic incentives, new residency visas, the EXPO 2020 and the world’s best vaccine roll-out programme have all resulted in attracting greater investor interest from around the world. The city is seen as a safe haven and investors are looking to the city’s real estate as a safe investment. With more companies offering remote working opportunities, Europeans are relocating their families to Dubai while companies are shifting their base and their staff to the city. One client from Austria relocating his business to Dubai was looking for AED 200 million in residential property for his employees. Properties in the mid-to luxury segment are most popular with demand outstripping supply. Investors are keen to buy super-premium properties whereas earlier they would initially pick up smaller properties or rent before they purchase their forever home. At Metropolitan Premium Properties we have seen our secondary market transactions increase three times in Q1 this year which has resulted in a 250% sales growth versus the same period last year. Our European client base has increased 20% in Q1 2022 compared to the same period last year. We are seeing a significant increase from Western European markets for secondary properties however there is more demand than there is supply at the moment which means we are working with other agencies to find stock for our clients. Dubai has clearly bounced back from the seven-year hiatus and all the data and trends indicate a record year for real estate as developers launch new projects and HNWI’s continue to invest in the city. Alina Adamco, secondary Market Sales & Leasing director, Metropolitan Premium Properties. MEConstructionNews.com | May 2022

PROGRESS REPORT

Final update

Dar Al Arkan celebrates topping out of $218m Urban Oasis residential tower Structural completion milestone marked as developer prepares to deliver the project before the end of 2023

ar Al Arkan has announced the topping out of its Urban Oasis residential tower. The $218 million, 34-storey project is being developed in partnership with Missoni and is located near the Dubai Water Canal. The structural completion milestone was celebrated by Dar Al Arkan chairman Yousef Al Shelash, who visited the site and took part in the topping out ceremony. Urban Oasis is Dar Al Arkan’s first project in the UAE, and the region’s first ever bespoke Missoni-inspired living spaces designed by the fashion

May 2022 | MEConstructionNews.com

brand’s MissoniHome line, which is dedicated to interiors, decor, and furnishings, said a statement. Situated on the Dubai Water Canal, it is in close proximity to Downtown Dubai’s top attractions such as Burj Khalifa and The Dubai Mall, and many other premium lifestyle locations. The project’s homes offer uninterrupted views of the Dubai Water Canal, making the tower a true urban oasis within the bustling city. It consists of high-end one, two and three-bedroom apartments and four-bedroom penthouses with luxury interiors from MissoniHome, stated the Saudi developer. Residents will also have access to luxury facilities and services, including a swimming pool, children’s play area, car parking, an equipped gymnasium, and a 24-hour, seven-days a week concierge and security service. The tower has been 80% sold to a diverse range of homeowners and investors from all over the world representing over 45 nationalities, it added. It is scheduled to be completed before the end of 2023.

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