Big Project ME May 2024

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Licensed by Dubai Development Authority THE BUSINESS OF CONSTRUCTION May 2024 MEConstructionNews.com 215 Enabling a Digital World BART HOLSTERS DISCUSSES THE APPETITE FOR DATA CENTRES AND WHAT GOES INTO BUILDING AND SUSTAINABLY OPERATING THESE INCREDIBLE FACILITIES

BIM Management

Project Collaboration

Contract Management

Asset Management

Field Management

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ANALYSIS FEATURES INSIGHT

08 The Briefing

UAE Cabinet approves US $540mn aid package for citizens whose homes and property were affected by floods

14 The Big Picture

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

16 Market Report

Knight Frank reviews key trends and the performance of Saudi Arabia’s residential market during the 2023-2024 period

22 In Profile

Enabling a Digital World

Big Project ME talks to Bart Holsters about the appetite for data centres, and Khazna Data Center’s approach to designing and operating these resource intensive facilities in the region

30 Project Profile

Elevating Coastal Luxury Living

Anwar Aman and Bhupender Patel discuss the first JW Marriott branded residential property in the GCC, which is set to be unveiled in Al Marjan Island in Ras Al Khaimah

34 Comment

With careful planning, innovative thinking and a commitment to excellence, sewerage tunnels can serve as lifelines for generations to come says ACCIONA’s Fernando Vara Ortiz De La Torre

38 Comment

PMKConsult’s Lewis Wright on building sustainable and secure data centres in the GCC

40 Final Update

LEAD Development has begun handovers in Nad Al Dhabi village, which is located in Abu Dhabi’s Jubail Island

1 MEConstructionNews.com | May 2024 CONTENTS May 2024
08 16 22 30 34 40

Climate resilience is critical

Infrastructure has been on my mind for several months, thanks in part to the launch of Big Project ME’s (BPME) inaugural Critical Infrastructure Summit (CISUMMIT), and due to the storms that pummelled the UAE and Oman on April 16.

The storms dumped a year’s worth of rain on the UAE in a single day - officials have said the rainfall was the heaviest the country experienced in 75 years.

The rains affected everyone in the country to varying degrees, ground life to a halt for a few days, and caused millions of dollars worth of damage to public and private property.

From a BPME perspective, we were forced to postpone the CISUMMIT to a later date to ensure the safety of our speakers and delegates. This in particular got me thinking about how invaluable infrastructure is to our day-to-day existence and - equally - how important it is for regional infrastructure to be resilient to adverse weather.

While climate resilience to storms may have once been an optional extra for regional cities and individual infrastructure projects to factor in, I reckon it’s now vital. Climate change is having an impact on weather patterns and the

occurrence and intensity of adverse weather events, as per scientists around the world.

“We are quite confident about the link to climate change. Studies by the Intergovernmental Panel on Climate Change show future increases in rainfall intensity in the region,” said Professor Friederike Otto from the Imperial College London, who was commenting on the adverse weather that affected the UAE and Oman in April.

A comprehensive report released by Carbon Brief in 2022 revealed the following eye-opening stats: 71% of the 504 extreme weather events and trends included in the map were found to be made more likely or more severe by human-caused climate change, and of the 152 extreme heat events that have been assessed by scientists, 93% found that climate change made the event or trend more likely or more severe.

Given the mounting data linking climate change to extreme weather events, and the increasing volume of adverse weather events around the world, it’s clear that cities and infrastructure must be built with climate resilience as a key pillar. It’s also another stark reminder that we absolutely have to step up our focus on achieving Net Zero to prevent catastrophic climate change from forever altering our lives.

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Licensed by Dubai Development Authority THE BUSINESS OF CONSTRUCTION May 2024 MEConstructionNews.com 215
CENTRES
BUILDING
OPERATING THESE INCREDIBLE FACILITIES 4 May 2024 | MEConstructionNews.com
HOLSTERS DISCUSSES THE APPETITE FOR DATA
AND WHAT GOES INTO
AND SUSTAINABLY

Emerge to deliver solar energy facility for Dubai Maritime City

INFRASTRUCTURE

Alstom lands Jeddah Airport APM upgrade contract

CONSTRUCTION

Arada awards $168mn in contracts for construction of 565 homes

British

6 ONLINE May 2024 | MEConstructionNews.com
LATEST NEWS FEATURES ENERGY
calls for bids
CONSTRUCTION Peel Ports Group
for works across portfolio INFRASTRUCTURE
Steel
supply track
Egypt’s Green Line EVENT: Future of Architecture Summit & Awards to be held on 12 June ANALYSIS: Construction costs in the Middle East set to rise by up to 7% in 2024
a Sustainable
REGISTER NOW 12th June 2024 Habtoor Grand Resort JBR Empowering progressive change with touchstone, informed debate and an industry-leading gala Awards FOA SUMMIT & AWARDS 2024_LEADERBOARD 728x90_PRINT.indd 1 26/04/2024 11:24 AM
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INTERVIEW: Building the Blueprint for
Tomorrow

INFRASTRUCTURE

Implementation phase of railway project between Oman and UAE begins

The project will have a major impact on passenger and cargo movement between the two countries

FINANCIAL

DEWA and Acwa Power announce financial close on 180 MIGD RO desalination plant

FINANCIAL

Dubai’s Department of Finance approves $10bn in PPP projects

The CPF programme for managing the PPP ecosystem performance within the Government of Dubai revolves around five strategic objectives

CONSULTANT

WSP Middle East launches Real Estate Advisory services in the region

New entity backed by $4bn funding from Abu Dhabi titan and local investment consortium

CONSTRUCTION

Hassan Allam subsidiary wins new Amaala Triple Bay contract

CONSTRUCTION

Dubai South and Aldar break ground on new logistics facility

The facility is expected to be completed by the end of 2024

CONSTRUCTION

RFPs announced for Bahrain residential project

Category ‘A’ consultants invited to bid for Phase 3 of kingdom’s flagship housing development

CONSTRUCTION New edition of DEWA Infrastructure manual launched

CONSTRUCTION

Waja Company to set-up e-car factory in Egypt

CONSTRUCTION

Egis to oversee rebuilding of historic Kuwait souq

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UAE Storms

UAE Cabinet approves $540mn aid package for citizens affected by floods

In response to damage to homes and property caused by severe storms, the UAE Cabinet approved a US $540mn aid package to support citizens

UAE authorities have approved a US $540mn aid package to support Emiratis who were affected by the recent storms, which were said to be the worst in the country’s history. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai set out the major relief effort, as he

chaired a meeting of the UAE Cabinet at Qasr Al Watan in Abu Dhabi.

Sheikh Mohammed said the funds would be used to address damage caused to the homes and property of citizens. He said a committee would be established to assess the damage caused by the adverse weather, which struck the country last Tuesday.

“In the Council of Ministers today, we approved an amount of 2bn dirhams to address the damage

May 2024 | MEConstructionNews.com 8
UNITED ARAB EMIRATES
THE BRIEFING

to citizens’ homes. A ministerial committee was assigned to follow up on this file, inventory the damage to homes, and disburse compensation in co-operation with the rest of the federal and local authorities,” stated Sheikh Mohammed.

He noted that the extreme weather was “unprecedented in its severity” and lessons would be learned from the deluge. He also noted that emergency services had received more than 200,000 calls related to the heavy flooding.

“Thanks to the follow-up and support of my President His Highness Sheikh Mohamed bin Zayed Al Nahyan, life returned to normal quickly. His Highness issued his directives to conduct damages assessments, provide support for families, and immediately assess the status of the infrastructure, emphasising that the safety of citizens and residents is the top priority,” commented Sheikh Mohammed.

He also stated that a committee was formed to assess the damage caused by floods and rain to infrastructure and propose solutions and measures at the national level. “The committee is chaired by the Ministry of Energy and Infrastructure and includes members from the Ministry of Defence, the Ministry of Interior, the National Emergency Crisis and Disaster Management Authority, and other federal entities, as well

Record rainfall

On 16 April, the UAE experienced the most substantial rainfall in its modern history across numerous regions, marking the largest volume since climate data recording began in

as representatives from all seven emirates,” Sheikh Mohammed outlined. He added, “The exceptional weather event turned out to be a blessing for us. The dams filled up, the valleys flowed with rainwater, and the underground water reserves replenished. We learned significant lessons on managing heavy rains in our cities, identified areas for development, and enhanced our readiness and preparedness, making us better prepared for the future.”

Following the storms, His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates

and Ruler of Abu Dhabi called for a quick response from authorities. He also expressed his appreciation for the awareness and responsibility shown by people during the adverse weather, according to WAM.

The President also requested that authorities quickly work on limiting the damage caused after the country witnessed its heaviest rainfall on record, and asked that necessary support be provided to all families affected by the severe weather, ordering that they be moved to safe locations in co-operation with local authorities.

9 MEConstructionNews.com | May 2024 THE BRIEFING
1949. Funds for citizens Sheikh Mohammed said funds would be used to address damage caused to the homes and property of citizens.

Al Maktoum International Airport to undergo US $34.8bn expansion

The move is part of Dubai Aviation Corporation’s strategy and will see all operations of Dubai International Airport transferred to the new facility in the coming years

The designs for a new passenger terminal at Al Maktoum International (AMI) airport and its overall expansion have been approved by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

The approval for the expansion project came during Sheikh Mohammed’s visit to Dubai Aviation Engineering Projects. Sheikh Mohammed was accompanied by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, and His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum,

May 2024 | MEConstructionNews.com 10
UNITED ARAB EMIRATES
THE BRIEFING

First Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance.

The project is expected to have a total cost of US $34.8bn and will be almost five times the size of Dubai International Airport. Once complete, Al Maktoum International will comprise five parallel runways with a quadruple independent operation, west and east processing terminals, four satellite concourses with over 400 aircraft contact stands, an uninterrupted automated people mover system for passengers, and an integrated landside transport hub for roads, metro, and city air transport.

“With the use of new technologies for the first time in the aviation sector, we are preparing for a new phase in the growth of the global aviation sector. We

are preparing for a phase in which Dubai leads the international aviation sector for the next forty years. We are also building an entire airport city in Dubai South, which will raise the demand for housing for one million people... and will include the most important companies in the world in the logistics and air transport sector,” remarked Sheikh Mohammed.

On completion, AMI will be the world's largest with a capacity to handle 260 million passengers. The move, which comes as part of the Dubai Aviation Corporation’s strategy, will see all operations of Dubai International Airport get transferred to the new facility in the coming years, said a statement.

Paul Griffiths, CEO of Dubai Airports added, “The growth of Dubai has always

World's largest airport

On completion, AMI will be the world's largest with a capacity to handle 260 million passengers.

been hand-in-hand with the growth of its aviation infrastructure, and today we see another bold step on that journey. The announcement of phase two of Dubai World Central - Al Maktoum International Airport's (DWC) expansion, marks the start of a huge investment of resources by our many stakeholders in designing and building a state-of-theart airport that will provide a quick, convenient, and high quality 21st century experience for our customers. This further solidifies Dubai's position as a leading aviation hub on the world stage.”

Dubai International Airport (DXB) will continue to serve as the primary hub, meeting the needs of 100m plus guests over the next few years as phase two of DWC takes shape, Griffiths concluded.

11 MEConstructionNews.com | May 2024 THE BRIEFING
Green lit The approval for the project was given during Sheikh Mohammed’s visit to Dubai Aviation Engineering Projects.

Nakheel and Meydan merge under Dubai Holding

The

goal is to create a more financially efficient entity, owning assets worth hundreds of billions, and comprising global expertise across various sectors said the Executive Office

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has announced that Nakheel and Meydan are to be merged under the umbrella of Dubai Holding. Accordingly, the Boards of Directors of Nakheel and Meydan will be abolished.

The two companies will join forces with Dubai Holding in an effort to sustain and advance growth through

a unified and integrated vision that builds on gains, spurs efforts and boosts Dubai’s global competitiveness, the Executive Office added. The entity will be led by Sheikh Ahmed bin Saeed, as per the Executive Office.

“In a new milestone to reinforce and boost our economic growth, today we directed the inclusion of Nakheel and Meydan companies under the umbrella of Dubai Holding, forming a global economic entity with a diverse portfolio in sectors such as technology, media, hospitality, real

May 2024 | MEConstructionNews.com 12
UNITED ARAB EMIRATES
THE BRIEFING

estate, retail, and more, led by Sheikh Ahmed bin Saeed Al Maktoum. The goal is to create a more financially efficient entity, owning assets worth hundreds of billions, and comprising global expertise across various sectors with which we can compete regionally and globally, achieving our national objectives, and realising the Dubai Economic Agenda D33,” said Shiekh Mohammed.

He added, “Wishing all the best to the team on this new mission. We are optimistic about an upcoming phase where we will multiply our growth, compete with our ambitions, and achieve our economic vision for our people.”

Sheikh Ahmed, who is also the CEO and Chairman of the Board of Directors of Emirates Group, and Chairman of the Dubai Civil Aviation Authority commented, "Inspired by the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Dubai is set to enter a new era of economic advancement." Nakheel and Meydan have previously unveiled several projects in sectors

Financially efficient

Specialised services

including property, retail, hospitality, food and beverage, leisure and entertainment and health care. They now join Dubai Holding to develop a highly diversified conglomerate operating in several sectors across property, tourism, hospitality, leisure and entertainment, and investments, the Executive Office said.

“This move is set to combine a complementary suite of services and expertise to diversify the economy and

maximise their competitiveness in the global marketplace. This strategic vision will provide an ideal platform to address the growing demand for specialised services globally and seeks to leverage new opportunities that are emerging and serve the global demand expected in the long term,” it added.

The beginnings of Dubai Holding are said to be strongly interlinked with the emirate's strategies in positioning itself as a global business and tourism centre. The conglomerate is active in sectors including hospitality, property, asset management, entertainment and investments, and is the personal corporate portfolio of Sheikh Mohammed, with Sheikh Ahmed as its Chairman.

Since its establishment in 2004, Dubai Holding has aimed at fostering an innovation-driven knowledgebased economy, the Executive Office said. Dubai Holding's portfolio also includes Jumeirah Group, Dubai Properties and Tecom Group.

13 MEConstructionNews.com | May 2024 THE BRIEFING
Dubai Holding's strategic vision will address the growing demand for specialised services globally. The merger under Dubai Holdings will create a more financially efficient entity with billions under management.
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01 BRAZIL DP World and Rumo to develop new facility at Port of Santos

A deal has been inked that will see DP World and Brazilian railway operator Rumo develop a new US $500mn terminal at the Port of Santos. The facility will be able to handle 12.5m tonnes a year of grain and fertiliser, and is expected to position the port as the country’s primary trade gateway and a key hub for South America.

The expansion is in addition to recent investments in DP World’s container handling facilities in the port, increasing capacity from 1.2m TEUs to 1.4m TEUs, while expanding the size of the quay from 1,100m to 1,300m.

Alstom lands

Jeddah Airport APM upgrade contract

Alstom has been awarded a contract to boost the capacity of the Innovia automated people mover (APM) system at King Abdulaziz International Airport. The move is said to be a significant step in the Kingdom’s preparations to accommodate the airport’s projected passenger growth.

Alstom will undertake the design, engineering, supply, integration, testing and commissioning of a full system upgrade of Jeddah’s International Airport Terminal 1 People Mover, including four additional Innovia APM cars, to be added into the current fleet of ten.

02 UNITED KINGDOM

Peel Ports Group calls for bids for works across portfolio

The United Kingdom’s second largest seaport operator, Peel Ports Group, has initiated a tender process where contractors can submit bids for two new frameworks for a long-term construction programme that will take place across its UK and Ireland sites.

The port operator is seeking to appoint contractors to the two frameworks for a period of up to eight years. One framework will cover general construction, while the other will cover marine construction. The programme is said to be worth approximately US $947mn.

Designs for US $2.5bn Baghdad Metro project complete

Iraqi authorities have said designs for the new Baghdad Metro project have been completed.

Spanning over 148km, the US $2.5bn project will feature 64 stations covering 85% of the city including all holy sites, colleges and tourism districts, stated Nasser Al Asadi, the Iraqi Prime Minister’s advisor on transport affairs.

Last month, authorities began inviting bids for the project for which a total of 26 multinational corporations from China, India, Germany, Italy, Spain and Qatar expressed their interests in the project.

03 EGYPT

British Steel to supply track for Egypt’s Green Line

British Steel has announced that it has secured a contract to supply track for Egypt’s Green Line railway.

The multi-million dollar contract will see the firm provide 9,500 tonnes of track that will be produced at its plant in Scunthorpe, UK for Egypt’s first fully electrified mainline and freight network.

The network is said to be 660km long and will carry both passenger and cargo trains up to speeds of 250km per hour. British Steel is said to be among a number of key suppliers providing rail for the project.

Egis to oversee rebuilding of Kuwait souq

Egis has been awarded a contract for the Souq Al Mubarakiya Development and Reconstruction Project in Kuwait. Building on the successful pre-design and design management phases of the project, Egis will now serve as the overall construction management consultant, the firm stated.

Souq Al-Mubarakiya played a pivotal role in shaping the country’s political, commercial, and social history. The project aims to revitalise and preserve the historic market’s unique 120-year-old heritage, with the development led and financed by Kuwait Finance House (KFH).

14 May 2024 | MEConstructionNews.com
01
04 SAUDI ARABIA 06 KUWAIT
THE BIG PICTURE
05 IRAQ

RFPs announced for Bahrain residential project

Bahrain’s Ministry of Housing and Urban Planning has issued a request for proposals (RFP) to consultants for providing contract management and construction supervision of the East Sitra Social Housing Project. The development will feature 531 residential units, once it is complete. The new project represents one of Bahrain’s largest-ever residential developments and aligns with the Kingdom’s aims of encouraging urban growth and regeneration as part of a commitment to an increasingly-diversified economy.

08 OMAN SSH completes mixeduse development project at Ghala Heights

SSH has completed an integrated mixed-use development that spans 146,776 sqm, making a significant mark on Muscat’s skyline.

Ghala Heights will serve as the home for the Mövenpick Hotel and Hotel Serviced Apartments, an upscale four-star hotel providing 282 guest rooms and 58 serviced apartments.

The hotel boasts four dining options, a spa, a rooftop infinity pool, and a fitness centre. Three residential apartment blocks, housing a total of 144 apartments, are located over a five-storey podium.

Power inks $262.7mn wind PPA in Uzbekistan

A US $262.7mn PPA has been signed by Acwa Power and the National Electric Grid of Uzbekistan for a 200MW wind project. As per the terms of the 25-year agreement, the company will develop the Nukus2 200MW wind power project along with a battery energy storage system (BESS).

Billed as a ‘key PPP project’, it is being undertaken under the build, own, operate and transfer (Boot) model.

Acwa Power said that it had $1.085bn in investments in Uzbekistan, which would be used for the construction of two windpower plants at overall capacity of 800MW.

15 MEConstructionNews.com | May 2024 02 09 03 05 09 UZBEKISTAN ACWA
THE BIG PICTURE 06 07 04
07 BAHRAIN
08

Saudi Residential Market Review

Knight Frank reviews key trends and the performance of Saudi Arabia’s residential market during the 2023-2024 period

The total number of real estate transactions across all asset classes in Saudi Arabia slipped by -17% in 2023 to just over 177,000, while the total value of all deals declined by -9% to SAR 197.7bn over the same period.

Residential transactions, which accounted for 58.7% of all real estate deals by total value, registered a -16% fall in the number of deals to just under 150,000 sales. With record house price growth across the Kingdom, deepening affordability challenges and shifting demand dynamics as younger

Saudis opt to delay home ownership in favour of renting, residential demand has faced headwinds for almost two years.

The total number of mortgages issued between January and November 2023 fell by -35%, compared to a decline of -22% over the same period last year. Similarly, the total value of mortgages issued declined by -36% to SAR 74.2bn during the same period, as higher interest rates and prices move potential buyers into a longer holding pattern, while they amass ever increasing deposits.

A key contributor to slowing deal activity of mortgage rates, which escalated from

16 May 2024 | MEConstructionNews.com
MARKET REPORT Industry Outlook

3% to 5% over the last 12-months. Despite an ongoing cultural shift towards the acceptance of apartment living, which has been galvanised by high home values and mortgages for apartments slipped by -25% to SAR 20bn over the course of the last year.

Mortgage affordability is a critical issue in the real estate market. The Saudi Ministry of Housing has been actively working to address the demand for more affordable homes as it works towards its 70% homeownership target by 2030. To bolster homeownership among nationals, a new mortgage guarantee services firm called “Dhamanat” was launched in July 2023. Dhamanat’s role is to provide financing guarantees in conjunction with mortgages, thereby facilitating easier access to home financing.

Separately, several new Premium Residency Visa options were unveiled in January, including

a real estate ownership visa. The announcement, which is tied to owning a property worth at least SAR 4 million, with no outstanding mortgages, or debt against the property is expected to pave the way for greater demand for high-end homes from international buyers.

RIYADH IN THE LIMELIGHT

Unlike the rest of the Kingdom, Riyadh stands out from the pack, with transaction volumes rising by 7% last year, compared to a -21% fall in Jeddah and a -12% decline in the Dammam Metropolitan Area.

A growing population in the Kingdom's capital, coupled with increasing urban migration is supporting heightened demand for housing. Despite this significant trend however, the total value of residential transactions in Riyadh had only risen by 1% during 2023 to SAR 50.9bn, hinting at a

rapid tapering of the strong price growth registered over the last two-to-three years.

While average apartment prices climbed to a new record high of SAR 5,250psm, equating to a year-on-year rise of 4.5%, prices during Q4 only increased by 2%. However, this performance has not been uniform, with apartment prices in northern districts such as As Sahafah (23%) and An Nakhil (13%) climbing at a faster rate during 2023 to reach SAR 7,744psm and SAR 7,785psm, respectively. Similarly, in Al Malqa prices stand at an average of SAR 9,200psm, equating to a rise of 14.5% over the last 12 months.

In contrast, villa prices have risen by a more modest 0.5% during 2023 to an average of SAR 4,970psm by the end of the year. Some districts like Al Uraijah (-14%) and Al Hamra (-13%) experienced sharp corrections during the year, with prices settling at SAR 2,390psm and SAR 5,590psm, respectively. Northern

17 MEConstructionNews.com | May 2024 MARKET REPORT
Source: Knight Frank, MOJ, SAMA TOTAL
NUMBER
300,000 250,000 200,000 150,000 100,000 50,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 300 250 200 150 100 50 Number of residential transactions Value of transactions (SAR billions)
200,000 160,000 120,000 80,000 40,000 2016 2017 2018 2019 2020 2021 2022 2023 200% 150% 100% 50% 0% -50% Mortgage Value (SAR billions) Y-o-Y % Change
VALUE AND VOLUME OF RESIDENTIAL TRANSACTIONS
OF RESIDENTIAL TRANSACTIONS (LHS) VALUE OF RESIDENTIAL TRANSACTIONS (RHS)
VALUE OF MORTGAGES ISSUED MORTGAGES VALUE (LHS) Y-o-Y % CHANGE (RHS)

areas such as Al Malqa (SAR 9,140psm) and Al Irqah (SAR 5,980psm) have mirrored the performance of prices for apartments, growing by 12% and 7%, respectively.

Over the medium to long term, the government’s vision to turn Riyadh into a new financial hub for the Kingdom and region is expected to drive up home ownership demand levels. Indeed, thus far, some 200 companies have signed up to the Program HQ initiative, including the likes of Unilever and Siemens. These businesses are contributing to rising job levels in the Kingdom, and also fuelling the high levels of intra-Saudi migration being recorded anecdotally.

The capital anticipates its population to double to nearly 16m by 2030 and even with 241,000 homes expected to be completed between now and then, we forecast a shortfall of 1.5m homes.

JEDDAH IN FOCUS

The number of residential transactions registered across Jeddah saw a double-digit decline of -21%, dropping from 23,990 deals in 2022 to 18,897 in 2023. In addition, the value of transactions declined at a rate of -26% during the same period to end 2023 at SAR 20.9bn.

Average villa prices in Jeddah fell marginally by -2.5% during 2023 to SAR 5,085psm. Q4 2023 alone registered a decrease of 1% in villa values. Villa prices in Ash Shati (SAR 8,580psm) and Al-Khaldiyah (SAR 7,380psm) remain the highest in the city, and are now 3% and 7%, higher than at the end of 2022, respectively.

Meanwhile, more affordable villa locations like Al-Kausar (SAR 3,123psm) and Al-Sanabal (SAR 2,623psm), the annual rate of decline has been stronger at -15% and -20%, respectively.

Elsewhere, apartment prices dropped by -2% in 2023, ending the year at SAR 4,150psm.

The average price for apartments across the city ranges from SAR 6,370psm in districts like Obhur Al Junubiyah, to SAR 3,510psm in Al Safa.

The current supply of residential units stands at 891,500 units, representing a 1.8% increase compared to 2022. It is anticipated that by 2026, the market will have grown by 4% due to the addition of almost 55,000 new units.

Despite not experiencing the same extreme inflation levels as North America and Europe over the last 18-24 months, borrowing has become more expensive in the Kingdom, especially outside the capital where monthly earnings lower average monthly earnings make the transition to property ownership even more challenging.

The government is working on ways to revitalise demand in the city through new large-scale real estate and infrastructure projects. Jeddah Central, for instance, will

18 May 2024 | MEConstructionNews.com MARKET REPORT
RIYADH RESIDENTIAL SUPPLY EXISTING SUPPLY UPCOMING SUPPLY 1,500,000 1,200,000 900,000 600,000 300,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024f 2025f 2026f JEDDAH RESIDENTIAL SUPPLY EXISTING SUPPLY UPCOMING SUPPLY
800,000 600,000 400,000 200,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024f 2025f 2026f
1,000,000

DAMMAM METROPOLITAN AREA RESIDENTIAL SUPPLY

emerge as a worldclass retail and hospitality hub for the city, complete with 17,000 homes when it is completed by 2030. For those with more modest budgets, over 25,000 affordable units are expected to enter the market by 2024 in the framework of the Ministry of Housing and Sakani Program, which should help to satisfy pent-up demand from those currently priced out of the market.

DAMMAM METROPOLITAN

AREA PERFORMANCE

Echoing Jeddah’s residential market, the Dammam Metropolitan Area (DMA) registered

apartment price falls of -0.5% over the course of the last 12 months, while villa rates slipped by -2.5%. Unsurprisingly, both the value and number of residential transactions recorded an annual decline in the DMA in 2023. The total number of transactions decreased from 9,500 in 2022 to 8,366 in 2023, representing a 12% decline. The total value of transactions dropped by 23% during the same period to SAR 10.1bn.

DMA’s historical role as a major administrative hub for the robust Saudi oil industry continues to underpin the demand for apartments and ready built units rather than villas.

As a result, the two key cities that comprise the DMA – Dammam and Khobar – have experienced diverging performance when it comes to residential values. Villas are generally more affordable in Khobar with an average price of SAR 3,185psm, whereas Dammam’s villa rates are 13% higher at SAR 3,620psm. For apartments, the opposite is true. Apartments in Khobar stand at 3,870psm, making them 16% higher than Dammam. The existing residential supply in DMA stands at 364,000 units. Looking ahead, we forecast this figure to increase by 7% by the end of 2026, which translates into 8,630 new completions.

19 MEConstructionNews.com | May 2024
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Enabling a Digital World

BART HOLSTERS, SENIOR DIRECTOR –OPERATIONAL EXCELLENCE AT KHAZNA DATA CENTERS TALKS TO BPME ’S JASON SAUNDALKAR ABOUT THE UAE’S DATA CENTRE MARKET, KHAZNA’S CURRENT OPERATIONS AND PLANS FOR THE FUTURE, AND SUSTAINABLY OPERATING THESE INCREDIBLE FACILITIES IN THE UAE

23 MEConstructionNews.com | May 2024
IN PROFILE

ccording to data from Mordor Intelligence, the UAE data centre market size is estimated at 429.3MW in 2024, and is forecasted to grow by a CAGR of 14.39%, reaching 841MW by 2029. A report from the market intelligence firm notes that the high penetration and adoption of smartphones and 5G connectivity, and growing focus on digitisation are amongst the key drivers for the country’s growing data centre space.

The data centre market in the UAE has several players, however Khazna Data Centers (Khazna) was said to have the lion’s share of the market, with a 45.8% share in 2023. Here, Big Project Middle East’s Jason Saundalkar talks to Bart Holsters, Senior Director – Operational Excellence at Khazna Data Centers about the UAE’s data centre market, Khazna’s current operations and plans for the future, and the challenges of sustainably operating these resource hungry facilities in the Middle East.

Share an overview of the data centre market in the UAE; what trend is most responsible for stimulating the demand for data centres in the UAE?

Rapid urbanisation and data privacy regulations, fuelled further by population growth, is driving increased demand for data centre infrastructure to support the digital transformation of cities. We are also seeing a growing demand for advanced technologies, including artificial intelligence (AI). AI adoption requires robust computing resources and storage capacity, leading to higher demand for data centres. The proliferation of cloud infrastructure to support AI workloads and smart city initiatives further contributes to the growth of the data centre market, as organisations seek scalable and efficient computing resources for data processing and analysis. Smart city projects, aimed at enhancing urban efficiency and

sustainability through interconnected technologies, rely heavily on data centres to collect, store, and analyse data from various devices deployed across the city. With the increasing trends of rapid urbanisation, AI adoption, cloud infrastructure expansion, and smart city initiatives, there are significant opportunities for growth in the market.

Furthermore, the UAE has invested heavily in high-speed internet connectivity and advanced networking technologies, providing the necessary backbone for data transmission and connectivity. Also, the availability of renewable power and the UAE’s clear commitment to a clean energy mix are key drivers for sustainable data centre growth in the country.

Finally, and likely one of the most significant drivers stimulating the demand for data centres in the UAE is the government-led digital transformation initiatives to create a broader ecosystem that relies on robust IT infrastructure, including data centres, to support digital innovation and economic growth.

How do you see data centre growth developing in the UAE going forward? What do you expect the market to look like by 2030?

The UAE’s data centre market is poised for significant growth due to a continued influx of investment from both the government and the private sector. This continued investment is driven by increasing demand for cloud and AI services, as well as the country’s digital transformation objectives to position itself as a regional digital hub. Further, the majority of data is nowadays produced by machines and sensors rather than by people alone, set to reach a staggering 175-zetabytes by 2025, according to some studies. We love data and we generate tons of it because we value the strategic advantages this “new gold” is likely to unlock.

Naturally, this new gold requires infrastructure to be hosted, processed and enabled to traverse the globe in a secure manner. This is why data centres or ‘Dataports’ have become indispensable pillars for socio-economic development, akin to the significance of airports and seaports. As the UAE keeps progressing towards becoming a smart nation, this expansion will also continue to drive the demand for data centre services to support the storage, processing, and analysis of large volumes of data generated these devices.

23 Khazna currently has 23 data centres commissioned and an additional seven in delivery

Furthermore, businesses are continuing to adopt multi-cloud strategies and are starting to leverage on the rapid developing AI technology. By 2030, the market is expected to see a further shift towards cloud and AI-focused data centres to facilitate a seamless integration between these different cloud environments and integrate the rapidly developing AI technology, and all with a strong emphasis on sustainability.

Khazna’s expansion efforts, coupled with our focus on eco-friendly practices, fully support the robust and innovative data centre ecosystems emerging in the coming years. To achieve this, Khazna is equally integrating and leveraging on the advances of these technologies, adopting AI-driven automation and predictive analytics to shape the future of our data centre operations, while optimising

24 May 2024 | MEConstructionNews.com
IN PROFILE
Focused on excellence Bart Holsters, Senior Director – Operational Excellence, Khazna Data Centres.

resource allocation, improving efficiency, and enhancing our service delivery.

What is the profile of customers that Khazna works with to develop data centres for in the UAE?

Khazna Data Centers serves a diverse range of customers across various sectors, including telecommunications, financial services, healthcare, government, and AI. We provide solutions and services tailored to meet the specific needs of businesses, enabling them to securely store and manage their data.

How many data centres does Khazna currently operate in the UAE?

Share stats and figures in terms of capacity, energy requirements etc.

Khazna currently has 23 data centres commissioned and an additional seven in delivery. We have a customer contracted capacity of 301MW and were the first carrier neutral pure wholesale data centre platform in the region. Environmental sustainability is a key consideration for Khazna. Our Future First strategy emphasises energy-efficient design, renewable

energy sources, and carbon-neutral operations to reduce environmental impact. We are integrating sustainable technologies such as economisers, adiabatic cooling, renewable energy and a biofuel conversion programme for our generators to name just a few, all contributing to Khazna achieving the region’s lowest annualised PUE at 1.4.

What are the solutions and services that Khazna offers? What makes your firm stand out compared to others operating in the UAE?

For over a decade, Khazna has been a cornerstone of digital infrastructure development, propelling the UAE into an international technology hub and spearheading the advancement of the digital economy. Amidst this evolution, Khazna remains committed to adopting world-in-class integration of cutting-edge technologies into its wholesale service offerings. What really sets Khazna apart is its continued drive to deliver superior customer experience, including a secure and reliable data centre platform, meticulously designed to meet stringent

45.8% By 2023, Khazna holds 45.8% of the UAE data centre market

industry green standards, connecting businesses to the future power of data for strategic growth and innovation. Our state-of-the-art facilities, combined with our expert team and strategic locations, create a digital ecosystem conducive to the seamless integration of Cloud and AI technologies, enabling our partners to unlock new possibilities and drive business success.

What are some of the key factors for the design and development of data centre facilities in the UAE? How does data centre design, construction and operation in the UAE differ compared to Western markets?

Khazna facilities prioritise the adoption of cutting-edge technologies and sustainable practices. We aim to exceed international standards by focusing on eco-friendly solutions, while driving down costs for our clients. We emphasise best practices across our buildings, services, and staff, guided by industry accreditations. We strive for Uptime Institute’s Tier III certification for Constructed Facility, ensuring compliance with global standards and efficient construction

25 MEConstructionNews.com | May 2024 IN PROFILE
State of the art AUH6 was commissioned in Feb 2024 and is the latest addition to Khazna’s network of data centres. AUH6 sets the bar for the next generation of data centres in the UAE, the firm says.

methods. Additionally, Khazna holds LEED Gold and Estidama Pearl-4 certificates for construction, underscoring its commitment to sustainability. The data centres are also certified with ISO 27001:2013 accreditation, guaranteeing robust information security management systems implementation.

Compared to Western markets, the UAE’s hot and arid climate necessitates specialised cooling systems and infrastructure to manage high temperatures efficiently. Khazna’s facilities are built with these challenges in mind using external architectural elements crafted to protect the building from the adverse effects of direct sunlight. This design approach effectively reduces the infiltration of heat into the building, therefore enhancing the data centre’s efficiency and sustainability.

In addition, Khazna’s facilities have adopted higher delta temperatures and use air cooled chiller systems with an option to trigger ‘free cooling’ and ‘adiabatic cooling’ when outdoor temperatures drop in winter, reducing the Power Usage Effectiveness (PUE) to a target of 1.4 reducing power bills.

What are some of the learnings Khazna’s experts have accumulated in their journey from building/ operating the company’s first

data centre to the present?

Overall, Khazna’s journey of building and operating data centres has been marked by continuous innovation. Scalability and modularity of our designs have evolved along with the technology and market dynamics. Data centres need to accommodate increasing demands for power density and connectivity. Our modular designs and flexible architectures allow for adopting the latest technologies, easy expansion and upgrades without disrupting operations. Another point of focus and constant learning is energy efficiency and minimising carbon footprint. This in addition of implementing stringent waste management policies throughout the lifecycle of the facility. Adopting a customer-centric approach since day one and spending time understanding the needs and expectations of our customers has also been crucial in developing personalised solutions, and transparent communication platforms to bolster trust and foster long-term partnerships.

Furthermore, many digital voyages are setting sail today, and data has become the lifeblood of innovation fuelling the need for more and larger digital infrastructure. With such expansive capacities reaching gigawatts sizes, an even greater responsibility rests on our shoulders to keep reinventing our designs in the realm

By 2030, the market is expected to see a further shift towards cloud and AI-focused data centres to facilitate a seamless integration between these different cloud environments and integrate the rapidly developing AI technology”

of sustainability. To that end, we believe the industry has started a paradigm shift as it migrates into the power and cooling business. The data centres of tomorrow will be embracing a new identity as a vital ‘prosumer’, moving away from the mere consumer model, and becoming a conscientious contributor to the wellbeing of the communities it serves.

What are some of the key challenges Khazna has faced in the design, construction and operation of data centres in the UAE? How were these challenges tackled? As you can imagine there are a number of challenges that will naturally emerge when you are pioneering and are defining the benchmark for the region’s digital industry spanning the stages of design, construction, and operation. In the design phase, accommodating the rapid growth of data centre demand while ensuring flexibility for future expansions posed a significant challenge. In our industry it is all about ‘time-to-market’. To address this, we have finetuned and adopted a standard innovative and modular design. Furthermore, we have adopted a modular design that involves assembling pre-fabricated components or modules off-site and then integrating them on-site. This approach enables a

26 May 2024 | MEConstructionNews.com
IN PROFILE
for purpose AUH6’s façade has been designed to protect the facility from the adverse effects of direct sunlight
through
with
built a PV
provide 7MW
reducing
UAE data centre market size
estimated to be
2024
Designed
and
its partnership
Emerge, Khazna has
plant to
of power,
its reliance on traditional power. 429.3 The
is
429.3MW in

much faster deployment and also adds to easily adapt to market dynamics. Next to reducing construction time and costs, it also ensures a better grip on quality control and consistency throughout the constructed facilities. In addition, we are running zero waste programs, with an increased focus to minimising environmental impact and maximising energy efficiency, starting from construction and running through the operations of our facilities.

When it comes to operations, one of the most significant challenge is without a doubt the extreme climate conditions, necessitating a very efficient cooling infrastructure and a team of performance engineers to constantly monitor and optimise the cooling infrastructure. Furthermore, there is a significant shortage of skilled data centre professionals. Khazna has rolled out several programs to attract young graduates into the industry to address the talent shortage, as well as upskilling existing staff through development programs and courses.

Real world and virtual security is critical to the smooth and reliable operation of data centres. How does Khazna tackle these issues?

Khazna addresses real-world and virtual security concerns through a multi-layered approach across its data centre facilities. Physical security measures include state-of-the-art surveillance systems, multiple ID verification methods to ensure every individual is accounted for, and 24/7 monitored security operations centre to safeguard against unauthorised access and physical threats. We also employ advanced cybersecurity protocols and technologies to protect against virtual threats, ensuring the integrity, confidentiality, and availability of data stored within its facilities. These measures collectively contribute to the smooth and reliable operation of Khazna’s data centers, providing customers with peace of mind regarding the security of their critical infrastructure.

Data centres are massive consumers of energy and have significant cooling requirements; how can

Stringent security Physical security measures include stateof-the-art surveillance systems, multiple ID verification methods to ensure every individual is accounted for, and a 24/7 monitored security operations centre.

841

The UAE data centre market size is expected to rise to 841MW by 2029

these requirements be tackled sustainably as the world steps up its focus on achieving Net Zero? As the world intensifies its focus on achieving Net Zero, addressing the significant energy consumption and cooling requirements of data centres is imperative. At Khazna Data Centers, we are spearheading sustainable initiatives to mitigate our carbon footprint. This includes transitioning to renewable energy sources like solar and wind power, reducing reliance on conventional energy and lowering greenhouse gas emissions.

Khazna also adopts innovative cooling methods such as adiabatic-free cooling chillers to optimise energy usage and minimise power consumption. Our modular approach enhances energy efficiency, scalability, and uptime, while our partnerships with entities like Emerge and BEEAH Digital further underscore our commitment to sustainability in the data centre industry.

The recent launch of Khazna’s flagship AUH6 data centre facility is a prime example of these sustainable initiatives.

Located strategically in Masdar City, an urban development renowned for its commitment to sustainable practices and innovative technologies, AUH6 aligns with Khazna’s Future First Strategy. Through Khazna’s collaboration with Emerge, a ground-mounted solar photovoltaic (PV) plant has been developed to efficiently provide electricity to fuel the operations at AUH6. This solar plant boasts an impressive installed capacity of seven megawatts peak (MWp). The external architecture of the AUH6 was also crafted to protect the facility from the adverse effects of direct sunlight. This design approach effectively reduces the infiltration of heat into the building, therefore enhancing the data centre’s efficiency and sustainability. Next to designing and building such state-of-the-art facilities, we also set ourselves some stringent KPI’s towards utility consumption avoidance. There is no point in designing the best data centres in the region and then failing to operate them to the best of their abilities. Our operations team keeps on raising the bar relentlessly to optimise environmental metrics such as Carbon Usage Effectiveness (CUE), WUE (Water Usage Effectiveness) and generated waste.

Next to maintaining world class O&M standards, we also invest in the latest software stacks, embedding technology such as Machine Learning (ML) & AI to improve our analytics and decisionmaking capabilities, and working our way towards a truly predictive O&M environment. We also don’t shy away from integrating new technologies and sustainability programs into our existing fleet. Switching our diesel generators to biofuel is a great example of such implemented sustainability program to decarbonise our fleet.

In our commitment to waste reduction, we aspire to achieve the esteemed Zero Waste Certification within the coming 24 months. This prestigious certification exemplifies our dedication to minimising waste, and equally underscores our proactive approach towards environmental sustainability. By setting this ambitious goal, we aim not only to meet but to exceed regional standards, showcasing our unwavering commitment to a zero-waste future.

27 MEConstructionNews.com | May 2024
IN PROFILE

Post COP28, has there been new legislation or mandates that directly affect data centres? If so, please detail these requirements and how Khazna is responding to them. Apart from COP28 and regulatory requirements, at Khazna we believe that the data centre industry is uniquely positioned to lead in carbon neutrality efforts. Data centres inherently consume vast amounts of energy, but innovative strategies such as renewable energy sourcing, energyefficient technologies, clean fuels, and waste heat recovery can significantly mitigate their environmental impact. In our pursuit of a renewable future, we are dedicated to intelligently decarbonising our fleet and enhancing our impact on the communities we serve. Intermittency and low energy density are global challenges that make relying solely on renewable energy challenging. This combined with the increasing power constraints requires some forward thinking on how data centres of the future should be energised. One way of doing this is utilising the installed backup-up power more efficiently and turn these mini-power plants into prime microgrids. Thermal power generation is particularly effective in the waste heat recovery process. By incorporating Heat Recovery Steam

We are integrating sustainable technologies such as economisers, adiabatic cooling, renewable energy and biofuel conversion programme for our generators to name just a few, all contributing to Khazna achieving the region’s lowest annualized PUE at 1.4”

Generators (HRSGs), you can easily convert waste exhaust heat into steam, subsequently utilised for Combined Cycle (CC) power generation or Combined Cooling, Heating & Power (CCHP) power and cooling generation, enhancing the end-to-end energy cycle efficiency by 50 to 60%. These microgrids can be multiple source, complemented by renewables, storage systems and the conventional grid. Such a microgrid is typically controlled by an intelligent Energy Management System to allow to combine or switch between sources, always ensuring the most efficient and reliable source is used at any given point of time. From a sustainability standpoint this approach assists to minimise natural resource wastage, optimises infrastructure utilisation, and immediately reduces carbon emissions. Such a strategic shift not only ensures better use of our energy resources but also establishes a clear pathway to achieving zero carbon emissions within the next decade or so. The technology is certainly not new, it simply requires some forward thinking to re-invent the conventional setup and configuration, and this is typically what we like to do at Khazna, Future First!

What are Khazna’s plans for expansion, which markets in the Middle East are of most interest?

Specialised approach

The UAE’s hot and arid climate necessitates specialised cooling systems and infrastructure to manage a data centre’s high temperatures efficiently.

Khazna is strategically expanding its operations in line with the Middle East’s booming digital economy, projected to reach $780bn by 2030. With the UAE and Saudi Arabia leading investments in digital transformation, Khazna has ambitious growth plans to become a global leading data centre provider.

175 Most data is produced by machines and sensors, set to reach 175zetabytes by 2025

As we embark on our expansion journey, we are experiencing significant growth, not only within the UAE, but also in neighboring markets including Egypt, along with ambitious plans for Saudi Arabia and Kuwait. Notably, Khazna’s flagship data centre AUH 6, which is AI ready, sets new standards for efficiency and performance, while our entry into Egypt through a strategic JV partnership with Benya Group marks Khazna’s first international expansion, reinforcing our commitment to regional growth.

Khazna is also focusing on strategically expanding its operations in emerging markets where robust data centre infrastructure is lacking, focusing on regions with potential socio-economic benefits. With the Middle East’s digital economy set to soar, Khazna aims to bridge infrastructure gaps by establishing new data centres supporting the region’s digital growth. This expansion not only supports economic growth but also enhances regional connectivity and technological advancement.

28 May 2024 | MEConstructionNews.com
IN PROFILE
C M Y CM MY CY CMY K

CONSTRUCTION

With its compact design and light weight the applicators reach challenging project sites with ease. The improved LWSE hi-frequency motor and the compact control unit are also suitable for expanding to wire sawing and core drilling units, handing out a wide range of applications to construction sites.

TECHNOLOGY
May 2024 | MEConstructionNews.com 30 PROJECT PROFILE

Elevating Coastal Luxury Living

Anwar Aman and Bhupender ‘Bruce’ Patel, Co-Founders and Co-CEOs of WOW Resorts, discuss the first JW Marriott branded residential property in the GCC, set to be unveiled in Al Marjan Island and why Ras Al Khaimah’s real estate market is poised to elevate standards of coastal luxury

in

the UAE

Considered one of the northern emirate’s premium tourism, business and investment destinations, Ras Al Khaimah has seen a substantial influx of real-estate interest in recent years, driven by the emirate’s forwardthinking policies and a significant investment in infrastructure that will pave the way for a more dynamic economy for future generations.

It is against this backdrop that in November 2023, UAE-based WOW Resorts announced their strategic collaboration with Marriott International to develop JW Marriott Residences and JW Marriott Al Marjan Island Resort on Al Marjan Island.

Bhupender ‘Bruce’ Patel, Co-Founder and Co-CEO of WOW Resorts says the collaboration with Marriott International sets the stage for a development that will live up to its promise and will redefine residential living, offering a truly unique and immersive experience for residents.

“We believe in creating spaces that transcend expectations, and this collaboration allows us to introduce a new standard of luxury living to the UAE. The stunning vistas, world-class amenities, and excellence in design make this project a testament to the extraordinary experiences that Marriott International is dedicated to delivering,” he says.

Additionally, Patel highlights that this is truly a milestone project, underlining that Al Marjan Island will be home to the first JW Marriott-branded residential property in Ras Al Khaimah and the GCC region.

“Partnering with JW Marriott for branded residences offers a compelling combination of global prestige, exceptional hospitality, design excellence, access to a global network, a proven track record, marketing support, and consistency in quality,” he highlights.

Further elaborating on the development, Anwar Aman, Co-Founder and Co-CEO of WOW Resorts explains that JW Marriott Residences and JW Marriott Al Marjan Island Resort will

31 MEConstructionNews.com | May 2024
UNITED ARAB EMIRATES
PROJECT PROFILE

comprise an exclusive portfolio of 474 residences, featuring a selection of one, two, three, and four-bedrooms and luxurious penthouses, alongside 264 meticulously appointed guest rooms. “This development, with an estimated value of US $1.31bn, will be ready for handover by 2026,” he states. Aman firmly believes that the luxury development is set to redefine coastal living in the UAE market and broader region. He remarks, “This significant development by WOW Resorts is anticipated to showcase the magnitude of our commitment to elevate the standards of residential living in the region. The development promises to be a fusion of cutting-edge design, world-class amenities, and unparalleled hospitality, creating an iconic landmark within the Al Marjan Island community.”

RAS AL KHAIMAH’S BOOMING REAL ESTATE MARKET

For Patel, the decision to have his firm’s project in Al Marjan was natural. “The UAE has a discerning clientele with a taste for uncompromising luxury, and Ras Al Khaimah provides the perfect canvas for this vision. The breathtaking landscapes and thriving community of Al Marjan Island come together seamlessly

474 The

project will comprise an exclusive portfolio

of 474 residences

with our commitment to delivering worldclass living experiences,” he outlines.

Patel says that the strong potential of Ras Al Khaimah’s property market has only been reinforced in recent years, with the market hitting an all-time high as home prices on Al Marjan Island recorded increases of 35-50% since the start of the year. “This is a growing trend and will continue to attract global investors with the promise of lucrative returns and unparalleled waterfront living,” he explains.

He points out that Ras Al Khaimah also differentiates itself from nearby competing tourism markets such as Dubai, underlining that the emirate is making the most of its diverse natural landscapes, including mountains, desert dunes, and pristine coastline. He states, “Ras Al Khaimah emphasises eco-tourism and outdoor adventures, offering mountain hiking, desert safaris, and water sports. This focus on natural beauty contrasts with Dubai’s urban landscape.”

As such, Patel believes that WOW Resorts and Marriott International’s visionary project stands as a testament to the dynamic evolution of Ras Al Khaimah’s fast-growing residential real estate landscape, pointing to their commitment to add

a touch of brilliance to its already burgeoning real-estate scene.

He adds, “We are confident that this project will position Al Marjan Island and the emirate as a global capital for branded residences and luxurious coastal living. Poised to be an architectural masterpiece on Al Marjan Island, we want to offer our clients stunning vistas, world-class amenities, and excellence in design that will make this project a testament to the extraordinary experiences that Marriott International is dedicated to delivering.”

ALIGNING AGENDAS

Aman says his firm has had a reason to celebrate as the first phase of the project is already sold out, and they are looking forward to more milestones and handover by 2026. Aman admits that there are challenges that come with any construction project but that their focus is on continuing with the positive momentum, while ensuring compliance with the broader sustainability agenda.

The Ras Al Khaimah government has had a strong sustainability focus, being the first government in the world to achieve ISO 50001 energy management certification across all its entities, which is something WOW Resorts wanted to support.

32 May 2024 | MEConstructionNews.com PROJECT PROFILE
Project value
development has an estimated value of US $1.31bn and is expected to be ready for handover by 2026 says Anwar
and
The
Aman, CoFounder
Co-CEO of WOW Resorts.
The development promises to be a fusion of cuttingedge design, worldclass amenities, and unparalleled hospitality, creating an iconic landmark within the Al Marjan Island community”

Patel says that the project in Ras Al Khaimah supports the government’s commitment to environmental stewardship and sustainable development. “By integrating energyefficient practices, renewable energy solutions, water conservation measures, waste management strategies, and community engagement efforts, the resorts contribute to RAK’s goals for sustainable development and environmental stewardship,” he points out. Embracing energy efficiency, the resort will employ LED lighting and solar panels alongside extensive monitoring systems and is focused on reducing overall energy consumption when it is open for business.

Patel explains that water conservation efforts include installing water-saving devices and recycling systems, and that waste management is a priority, with recycling programs to reduce single-use plastics. He also highlighted the resort’s commitment to sustainable building practices, incorporating eco-friendly materials and green building techniques.

“Actively engaging with local communities, WOW Resorts sources products and services locally, supporting the regional economy and fostering cultural exchange,” Patel says, adding they aim to address the need for responsible tourism by integrating sustainable and eco-friendly practices into their operations.

AN INVESTMENT IN LUXURY

Aman says that as Ras Al Khaimah grows as a thriving real estate destination, they are confident that this project will ensure excellent return on investment and position Al Marjan Island as a reputed destination for branded residences and luxurious waterfront living.

He points out that choosing a branded residence at either WOW Resorts or JW Marriott presents potential residents with a distinctive array of benefits compared to traditional real estate options with premium amenities, high-end finishes, and sophisticated design. “Residents will enjoy world-class services, including concierge assistance, spa facilities, fitness centres, and fine dining, providing a resort-like lifestyle in the comfort of their home.”

He notes the global recognition and reputation of well-known hospitality brands contribute to the prestige of living in such residences. “Professionally managed and maintained, these properties alleviate the day-to-day maintenance burden for residents. The option to participate in rental programs allows property owners to generate income, making their investment work for them around the clock. Essentially, the ownership experience of a branded residence at WOW Resorts or JW Marriott transcends traditional real estate, offering a unique blend of luxury, services, global recognition, and investment potential.”

Sustainable focus
The project is to have a strong focus on sustainability including water conservation through the use of water-saving devices and recycling systems.
2026
The project is expected to be ready for handover by 2026 says Anwar Aman, CoFounder and CoCEO of WOW Resorts

In addition, Aman says that the project will distinguish itself through exceptional lifestyle offerings and robust community engagement initiatives. It offers an experience characterised by unparalleled luxury, featuring worldclass amenities such as exclusive spas, fine dining establishments, and stateof-the-art fitness centres, he remarks.

“Residents experience a resortlike ambience within their own living space, enjoying the epitome of comfort and sophistication.” For Aman, the branded residences are more than an investment; it also aims to foster a sense of community through events and social gatherings, providing residents with opportunities to connect with like-minded individuals.

“The association with a globally recognised hotel brand adds prestige, allowing residents to enjoy the cachet of living in a property with strong brand recognition,” he notes.

Aman highlights the venture is the beginning of an exciting journey for WOW Resorts in the UAE. “With more projects in the pipeline, we are poised to redefine the hospitality and real estate industry,” he says, adding they are set to inject another substantial $816mn investment into the UAE.

He concludes, “We are ready to captivate and inspire residents in the years ahead, offering unparalleled experiences that reflect our unwavering dedication to excellence and commitment to the UAE.”

33 MEConstructionNews.com | May 2024
PROJECT PROFILE

Tunnels

Unveiling the vitality of sewerage tunnel construction

MIDDLE EAST

With careful planning, innovative thinking, and a commitment to excellence, sewerage tunnels can serve as lifelines for generations to come says ACCIONA’s
Fernando Vara Ortiz De La Torre

In the realm of infrastructure development, few projects embody the intersection of necessity, complexity, and innovation quite like the construction of sewerage tunnels. Often unseen and underappreciated, these subterranean arteries form the backbone of modern urban sanitation systems, safeguarding public health and environmental integrity. Yet, the construction process behind these vital conduits is a testament to human ingenuity, perseverance, and the imperative of sustainable development.

Embarking on the construction of a sewerage tunnel is akin to delving into the earth’s hidden realms, a venture fraught with challenges but brimming with opportunities. From initial planning stages to the final commissioning, every step demands meticulous attention to detail, and a commitment to excellence.

At the outset, exhaustive geological surveys and feasibility studies lay the groundwork for informed decisionmaking. Engineers must navigate through a labyrinth of geological formations, subterranean waterways,

and urban infrastructure, all while minimising disruption to the surrounding environment and communities. The selection of appropriate tunnelling methods, whether traditional techniques like cut-and-cover or state-of-theart technologies like tunnel boring machines (TBMs), is pivotal in ensuring efficiency and cost-effectiveness.

We have designed and built more than 800km of metropolitan, road and railway tunnels in which our innovative efforts have made us a world reference, not only in the construction of these subway megainfrastructures, but also in the machinery that allows us to make these projects a reality: tunnel boring machines (TBM).

TBMs have become the safest method of excavation in a context of technological advances in geotechnical engineering, improved working conditions inside tunnels and the use of ventilation systems, among other developments. These machines can reach colossal magnitudes - lengths of more than 100m, an excavation diameter of 18m and a weight of 2,800t. In other words, they can be as long as nine buses, as

May 2024 | MEConstructionNews.com 34
COMMENT

tall as a five-story building, and as heavy as fifteen Boeing 747 aircraft.

We have several types of tunnel boring machines (Main Beam, single shield, double shield, earth pressure, hydroshield) to respond to the specific capacities of the terrain in each project. Thanks to the company’s self-performing office (SPO) and in house TBM capabilities, engineers and technicians are able to refurbish the company’s TBMs and adapt these huge machines to any eventuality that the project may present.

ACCIONA also has a Specialized Business Unit with more than 400 experienced engineers around the world. These people are responsible for the execution of projects, and all that knowledge and expertise is centralised in our Head Quarters in Madrid, where lessons learnt from different projects are compiled and shared among this pool of excellent experienced professionals and tunnel experts. ACCIONA is one of the few companies that has its own Tunnel Boring Machine Control Centre, a pioneering remote storage and monitoring platform where it collects and analyses data obtained in real time by the TBMs thanks to Big Data. The system processes in real time more than four million pieces of data per TBM per day.

THE START OF CONSTRUCTION

As construction commences, the site becomes a hive of activity, with teams of engineers, technicians, and laborers working in harmony to bring the project to fruition. Excavators carve through layers of soil and rock, while reinforcement and waterproofing measures safeguard the integrity of the tunnel against the relentless pressure of earth and water. Simultaneously, stringent quality control protocols and safety measures are implemented to mitigate risks and ensure the well-being of all involved.

Yet, beyond the technical intricacies, the construction of sewerage tunnels embodies a broader narrative of societal progress and environmental stewardship. These infrastructural marvels represent a commitment to public health, providing essential services that safeguard communities from the scourge of waterborne

diseases. Moreover, by facilitating the efficient conveyance of wastewater to treatment facilities, they play a crucial role in preserving the ecological balance of our waterways and safeguarding the integrity of fragile ecosystems. Furthermore, in an era defined by the imperatives of sustainability and resilience, the construction of sewerage tunnels offers an opportunity to embrace innovative approaches and technologies. From the integration of renewable energy systems to the utilisation of

eco-friendly construction materials, every decision holds the potential to minimise environmental impact, and enhance the project’s long-term viability. Yet, for all its technical prowess and environmental conscientiousness, the construction of sewerage tunnels is not without its challenges. From budget overruns to unforeseen geological obstacles, each project presents its unique set of hurdles that demand creative problem-solving and unwavering determination. Moreover, in an age of rapid urbanisation and climate change, the imperative to future-proof these infrastructural assets against emerging threats looms ever larger.

In conclusion, the construction of sewerage tunnels is a testament to human innovation, perseverance, and the pursuit of a healthier, more sustainable future. As we delve into the depths of the earth to lay the foundations of modern sanitation systems, let us not only marvel at the engineering marvels unfolding beneath our feet but also recognise the profound societal benefits they bring. With careful planning, innovative thinking, and a steadfast commitment to excellence, we can ensure that these vital conduits continue to serve as lifelines for generations to come, safeguarding public health, preserving the environment, and fostering resilient communities.

35 MEConstructionNews.com | May 2024
COMMENT
Safe excavations TBMs have become the safest method of excavation in a context of technological advances in geotechnical engineering says De La Torre. The specialist Fernando Vara Ortiz de la Torre, ACCIONA Global Director Specialized Business Units.

The Challenges of Disconnected Technology

MIDDLE EAST

Trimble’s Paul Wallett examines whether disconnected technology is hindering project communication within the design and construction processes

In the fast-paced realm of project management, where technology and perspectives are in constant flux, effective communication stands out as the linchpin for achieving unparalleled success. The dynamism inherent in project management is, however, often impeded by disconnected technologies, posing challenges that can undermine efficiency, productivity, information flow, and collaboration.

In light of this, companies involved in the field make constant efforts to include effective communication tools to maximise the success of their projects.

These top communication tools are crafted with the objective of facilitating communication, boosting teamwork, and offering a centralised platform for managing project-related data, and strive to create a more cohesive, efficient, and successful project environment.

CHALLENGES IN THE FIELD OF PROJECT MANAGEMENT

Effective communication has emerged as an integral component that holds together the complicated web of procedures. Nevertheless, disconnected technology has frequently served

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COMMENT Technology

as a major cause for concern within the industry, creating numerous challenges as well as inefficiencies in communication, collaboration, security, data consistency, etc.

The siloed characteristic of tools and platforms constitutes one of the foremost challenges encountered by construction teams. There might be separate software systems for construction teams and design teams, which certainly leads to fragmented flow of information. This division can cause miscommunication, errors in interpretation, and a lack of realtime cooperation, which can ultimately impact the project’s budget and schedule.

In the field of design, engineers and architects create complex blueprints, which function as a guide for them throughout the construction processes. Due to technology differences, it might become extremely imperative to carry out expensive modifications and rework when these plans and strategies are not effectively communicated with the construction teams. A comprehensive strategy to technology integration must be implemented to bridge this gap while ensuring that the construction and design teams operate from the same digital platform.

In construction, miscommunications can lead to expensive mistakes, significant delays in projects, and other discrepancies. Numerous solution providers are currently in pursuit to help stakeholders resolve these challenges. For instance, connected construction technologies, have been assisting companies in enhancing communication throughout the design and construction phases. This technology guarantees that all stakeholders are on the same page by facilitating real-time data exchange, collaboration, and project management

As an example, consider a scenario in which state-of-the-art technologies were not deployed in building Dubai’s Museum of the Future - an architectural wonder that showcases various technical breakthroughs and advancements.

In this particular case, the lack of collaborative platforms and integrated project management systems would cause communication failures that directly affect the efficacy of construction.

Furthermore, the energy efficiency and immersive visitor experience of the Museum would be hampered due to the lack of integration of smart technology, such as IoT devices. Essentially, the precision, efficiency, and cutting-edge elements essential to the Museum of the Future’s visionary design would be compromised due to the absence of modern construction technology.

Today’s construction projects with complex designs involves processes, including design and detailing, estimating, project management, steel fabrication, field technology, and financial/back-office management. The fragmented nature of these processes can hinder productivity and jeopardise a project’s success. The solution to this challenge is employing an integrated platform that streamlines the modelling, detailing, and design processes, guaranteeing accuracy and consistency throughout the whole project lifecycle.

SOLUTIONS FOR BRIDGING GAPS

Coordination is much improved by centralising task management, progress monitoring, and communication using an integrated project management system. When this system is integrated with design and other estimating tools, it offers a unified perspective, which allows project managers to make well-informed decisions.

A question of productivity

The fragmented nature of modern construction processes can hinder productivity and jeopardise a project’s success says Wallett.

COMMENT

Real-time insights can be obtained through the integration of project data with finance management systems. Financial operations are streamlined, and fiscal responsibility is ensured through automated invoicing and billing processes that are linked to project milestones.

Delays in the critical phase of steel manufacture might have an extended impact throughout the entire construction endeavour. Schedules can be synchronised by integrating fabrication equipment with project management systems. The automated quality control procedures within this integration improve productivity and lower errors throughout the fabrication process.

Field teams, who work independently, constitute the foundation of project implementation. Providing them with access to mobile technology integrated into project management tools guarantees real-time updates. Construction technology companies are revolutionising project management by merging these elements into a cohesive digital environment. With this integrated approach, challenges to communication are minimised, cooperation is improved, and provide a holistic view of the project from start to finish. From concept to delivery, it is a transformational method that guarantees success, accuracy, and efficiency.

37 MEConstructionNews.com | May 2024
Technology advocate Paul Wallett, Regional Director of Trimble Solutions, Middle East.

Building Sustainable and Secure Data Centres in the GCC

As the demand for data centres continues to surge, navigating the complexities of their design, development, and operation is essential for success says Lewis Wright, Projects Director at PMKConsult

In the digital age, data centres have emerged as the indispensable backbone of our interconnected world. They facilitate the storage, processing, and dissemination of vast amounts of information that power everything from business operations to social interactions.

As a Project Director at PMKConsult with over a decade of experience across the UAE and the UK, I’ve witnessed firsthand the evolving landscape of this critical infrastructure, particularly in the dynamic region of the GCC.

The demand for data centres is not just about meeting today’s needs; it’s about building for tomorrow’s challenges. Understanding the intricacies of modern data centre

May 2024 | MEConstructionNews.com 38
MIDDLE EAST COMMENT Data Centre

requirements is crucial for ensuring their long-term survival.

Requirements for data centres are skyrocketing, driven by factors such as shifting work processes, accelerated technological advancements, and heightened concerns around data privacy. This surge calls for a comprehensive understanding of the complex requirements that modern data centres must meet to thrive in today’s digital ecosystem.

DESIGNING RIGHT

First and foremost, modern data centres must be designed with scalability, reliability, and efficiency in mind. They need to accommodate the exponential growth of data while ensuring uninterrupted access and optimal performance. In the GCC, where rapid urbanisation and economic diversification are fierce, data centres must also be resilient to extreme environmental conditions, such as high temperatures and sandstorms, which are unique challenges compared to data centres situated in cooler regions.

In recent times, sustainability has also become a paramount consideration in data centre development. These facilities are notorious consumers of resources, particularly power and water, so embracing sustainable practices,

Surging demand Requirements for data centres are skyrocketing, driven by shifting work processes, accelerated technological advancements, and heightened concerns around data privacy says Wright.

Project lead Lewis Wright, Projects Director at PMKConsult.

such as leveraging renewable energy sources, implementing efficient cooling systems, and adopting water recycling technologies, is imperative to mitigate environmental impact and enhance operational efficiency. However, alongside sustainability, compliance is another critical aspect that cannot be overlooked. Data centre developers and operators in the GCC must navigate a complex regulatory landscape, ensuring adherence to local laws, international standards,

and industry best practices. From data localisation requirements to stringent data privacy regulations, compliance poses significant challenges that require meticulous planning and execution.

SECURITY MEASURES

Physical and digital security are also of paramount concerns for data centre operators. Physical security risks, including unauthorised access, natural disasters, and sabotage, demand robust measures such as biometric access controls, surveillance systems, and resilient infrastructure design. Similarly, safeguarding against digital threats, such as cyber-attacks, malware, and data breaches, requires state-of-the-art cybersecurity protocols, continuous monitoring, and proactive risk mitigation strategies.

As the demand for data centres continues to surge in the GCC and beyond, navigating the complexities of their design, development, and operation is essential for success. By addressing the diverse requirements of scalability, sustainability, compliance, and security, we can build resilient, efficient, and secure data centres that serve as the foundation of our digital world. As industry experts, it’s our responsibility to lead the way in shaping the future of data infrastructure and driving innovation.

39 MEConstructionNews.com | May 2024
COMMENT

Final Update

Jubail Island begins handovers in Nad Al Dhabi village

LEAD Development will continue to handover units to homeowners on a monthly basis, following a strategically planned phased approach

Jubail Island has announced the successful handover of 44 units for the first group of homeowners in Nad Al Dhabi village. The milestone is said to mark a significant achievement for the island’s construction, signalling LEAD Real Estate Developer’s

commitment to timely delivery and completion of what is expected to be the region’s premier community.

As part of the overall project delivery, LEAD Development will continue to handover units to homeowners on a monthly basis, following a strategically planned phased approach. This ensures that homeowners receive personalised care and attention, guarantees efficiency, and allows for a smooth move-in process.

Nad Al Dhabi is one of six villages located within Jubail Island, offering residents access to a range of amenities and residential options. The village will see the addition of a community centre and mosque during Q4 of this year. The community centre will include a majlis, a leisure pool, a gym, a room for fitness classes, a multi-purpose community space, an indoor kid’s playroom, a kid’s pool, a kid’s playground, several

Handovers

LEAD Development said it began handing over land plot title deeds to owners in the first quarter of 2023, and noted that many have begun construction of their waterfront

sports courts, and retail areas to cater for all needs of the village.

44 Number of units in the first handover

“We are excited to be reaching a key milestone in the journey of Jubail Island’s development, which showcases our ongoing dedication to achieving targets and delivery timelines. Our team worked tirelessly, along with the consultants and contractors, to meticulously complete construction works across the island, adhering to the highest quality standards. We are confident that the units will reflect our commitment to excellence and will meet homeowners’ expectations,” stated Engineer Abdulla Saeed Al Shamsi, Corporate Director of Jubail Island Investment Company (JIIC).

Owned by JIIC and developed and managed by LEAD, Jubail Island will eventually feature six residential villages nestled amongst the natural beauty and rich biodiversity of the mangroves.

40 PROGRESS REPORT
May 2024 | MEConstructionNews.com
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