Big Project ME November 2021 by CPI Trade Media

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THE BUSINESS OF CONSTRUCTION

Taking the Lead

BIG PROJECT ME LEARNS HOW THE RED SEA DEVELOPMENT COMPANY’S BIM IMPLEMENTATION APPROACH IS REVOLUTIONISING KSA CONSTRUCTION

The maximum on eight axles. The LTM 1650-8.1 A lifting capacity of 700 tonnes with either a 54 or 80 metre telescopic boom. Global mobility and convenience thanks to Hillstart Aid, ECOmode, ECOdrive, VarioBase and hydraulic VarioBallast. Nothing more is possible on eight axles. www.liebherr.com

Mobile and crawler cranes

CONTENTS

November 2021

ANALYSIS

FEATURES

INSIGHT

Comments

Tenders

The briefing

We learn how asbestos is still a danger in construction and how a more ecofriendly cement can be produced

The big picture

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

Market report

Analysis

JLL looks at the resurgence of the Cairo hospitality sector in Q3 2021

In profile Paul Wallett

Big Project ME speaks to Paul Wallett of Trimble Solutions about the adoption of new technologies and construction’s digitalisation

Project profile Taking the Lead

Gavin Davids hears from Ian Williamson and David Glennon of The Red Sea Development Company about how the megaproject’s implementation of construction technology is reshaping the Kingdom’s construction sector

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

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

40 Progress report

Dubai Holding announces the completion and launch of Ain Dubai

Saudi-US Business Council report says that Saudi Arabia’s construction sector is on the rebound from the pandemic

MEConstructionNews.com | November 2021

WELCOME

Introduction

Provoking change

hen we talk about construction technology, the focus is often on what the technology can do and about how it has the ability to find marginal gains on projects, such as improving efficiencies, performance, or wastage. It’s often assumed that the application of the technology will solve any and all issues that a company, or indeed an industry, is facing. This is clearly not the case – without the right application and thinking behind the implementation, no matter how good the technology is, it is bound to fail. Which is why I believe that one of the most important requirements for any technological evolution is leadership. Having a leader with a clear vision and process in place means that all the stakeholders involved will have a target in place to follow, and a standard to achieve. This is crucial for any long-term change to occur, and which is why it is so interesting to hear from The Red

November 2021 | MEConstructionNews.com

Sea Development Company this month. Speaking to Ian Williamson and David Glennon, it quickly becomes apparent that the developer’s goals aren’t just limited to the gargantuan Red Sea Project. Instead, their goal is to reshape how the Kingdom’s entire construction industry functions. Given the size and scale of the project, every contractor and consultant in the region will want a piece of the pie – but in order to get some, they’ll need to make sure they meet the very high standards put in place by the digital delivery team at TRSDC. By taking on a leadership role and contractually mandating that companies working with them are digitally enabled, TRSDC is provoking change across the Kingdom, creating an industry that is modernised and in tune with the ambitions of the country’s leadership. This is an approach that I’m seeing quite a few master developers take, both in the UAE and further afield. And I believe that it is this sort of leadership that will finally make construction a truly digitised industry.

Gavin Davids

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Taking the Lead

BIG PROJECT ME LEARNS HOW THE RED SEA DEVELOPMENT COMPANY’S BIM IMPLEMENTATION APPROACH IS REVOLUTIONISING KSA CONSTRUCTION ON THE COVER

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HOW MACHINERY IS SHAPING THE FUTURE OF CONSTRUCTION

Sports Boulevard Foundation issues contracts for wellness project in Riyadh

CONSULTANT

Bvlgari Hotels and Resorts launches new property in Los Angeles

EXPERTS: Capital Projects and Infrastructure – ‘The whole is greater than the sum of the parts’ CONSTRUCTION

Empower begins supply of wasl Properties’ 1 Residences

CONSTRUCTION

DHL Global Forwarding and TotalEnergies ink deal for 14,000MWh solar project

CONSTRUCTION

Bloom Holdings appoints contractor for 181-unit residential project

READERS’ COMMENTS

VIDEO: AMANA powers the UAE’s digital transformation

November 2021 | MEConstructionNews.com

I thought it was very interesting to see how many articles came up last month on the subject of how machinery can affect change in the construction industry such as this piece by Jeff Bennet (of Husqvarna Construction). Indeed, we read how Volvo and SSAB are now able to produce fossil-free machines as well as how JCB is moving into green hydrogen power all within a couple of days of each other. Bennet says in his article that machinery advances are currently focused on more environmentally friendly and efficient ways of working, with the most exciting of these developments in electric powered tools and equipment. Obviously, there are a lot of electric tools on sites already but I see very few signs of us being able to cut the cord to the diesel generators that power them. Major steps need to be taken in terms of infrastructure and logistics to make this practical. However, I think it may be only intervention by governments and city planners that not only reward developers but also their contractors which will truly lead construction to going green. Name withheld by request

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THE BRIEFING

Asbestos

An Ongoing Challenge

MIDDLE EAST

Anthesis’ Charles Faulkner discusses whether asbestos materials can make their way into company supply chains

he World Health Organisation (WHO) estimates that globally, 107,000 people die every year as a result of exposure to Asbestos. Breathing in the microscopic particles of Asbestos dust causes respiratory diseases that are extremely debilitating, painful and in

nearly all cases fatal. There is no known cure for Asbestos-related disease. The import, manufacture and use of Asbestos has been prohibited in the United Arab Emirates (UAE) since November 2006. Similar Asbestos bans exist in the rest of the Gulf Cooperation Council (GCC) countries, however they don’t exist in the GCC’s neighbouring countries. Asbestos is only banned in around one third of the world’s countries, most of which are in Europe. Vast quantities of Asbestos are still mined, refined, and turned in to Asbestos Containing Materials (ACMs) in the remaining two-thirds of the countries around the globe. According to the United States Geological Survey (USGS) the biggest remaining active Asbestos mines are located in Russia and Kazakhstan, but it is the countries where the manufacturing of Asbestos products takes place that

November 2021 | MEConstructionNews.com

are of more concern for the GCC. China and India manufacture and export thousands of tonnes of ACMs each year, the majority of which are utilised in the construction industry. With a quick online search, it is possible to purchase a plethora of Asbestos materials from the aforementioned countries at rock-bottom prices. From gaskets to insulations, roof sheeting to ceiling tiles; all can easily be purchased by the kilogram or square meter in never-ending quantities. Sometimes the purchaser may be unaware of what they are buying as the marketing of these ACMs has become more sophisticated in recent years. Sellers make impossible claims such as ‘Dust Free Asbestos’ and in certain circumstances they substitute or remove the word ‘Asbestos’ altogether. ‘Asbestos cement’ is now sold as ‘fibre cement’ and ‘compressed Asbestos

Health hazards Asbestos poses a major health hazard to people working on construction sites, but there is still a demand, and a supply, for it.

2006

Year in which asbestos was prohibited in the UAE

THE BRIEFING

107K Number of people dying every year from asbestos exposure

Eliminate the risk Charles Faulkner says that the industry needs to do more to eliminate the risk of Asbestos products entering construction sites.

fibre gaskets’ are now just ‘CAF gaskets’. Counterfeit materials are also commonplace, so any guarantee of ‘Asbestos Free’ or ‘Non-Asbestos’ should be treated with a degree of scepticism. Although banned by legislation and prohibited under the various green building regulations, Asbestos is still making its way onto construction sites and into buildings in the Middle East. Occasionally this is reported in the local national newspapers, however more often than not it goes undetected due to a general lack of awareness and the unscrupulous marketing tactics of Asbestos producing companies. Over the past 12 years, I have encountered a large number of newly constructed buildings that have had Asbestos installed in them – some as recent as 2021. Additionally, I have received numerous phone calls from individuals requesting where they can purchase ACMs (most commonly Asbestos cement pipework, roof sheeting, Asbestos gaskets, and insulations). Although these phone calls still are met with incredulity, they point to a wider concern. For many people within the construction industry the health hazards associated with Asbestos are still not well known, neither is the legal status of this hazardous material. There is still a demand, and without looking too hard there is also still a supply. Problems associated with the removal of Asbestos materials once they have been installed in a new/retrofitted building are of a different order of magnitude than if they have been delivered to a site and construction has not yet commenced. The time and costs associated with the identification (consider the needle in a haystack scenario of finding Asbestos gaskets installed into a new power station) and removal of Asbestos materials from a building can be eyewatering in comparison to eliminating the risk before construction. Regulators and local enforcing authorities have done an excellent job at prohibiting these materials through various bans and through the requirements set out in green building regulations, but what can be done by construction industry stakeholders to

Although banned by legislation and prohibited under the various green building regulations, Asbestos is still making its way onto construction sites and into buildings in the Middle East” completely eliminate the possibility of Asbestos being installed in their sites? First and foremost, at the procurement stage, Asbestos must be contractually prohibited by all relevant parties involved in both construction and maintenance works. Reference should be made to relevant legislation and local building codes, and it should be clearly stated that Asbestos is a banned material and must not be used. Reviews and desktop audits of material and equipment specifications should be carried out to reduce the

risk of Asbestos being brought on to a new construction site. Onsite audits and inspections of building materials brought on to a site should be carried out by competent and trained professionals. Such inspections should be accompanied by bulk sampling and analysis for Asbestos content, to prove that materials are in fact ‘Non-Asbestos’. The expense of having a professional Asbestos consultant sample and analyse a few bulk materials, pre-construction, pales into insignificance in comparison to the disruption, reputational risk and legal ramifications that could arise from an Asbestos abatement project in a brand-new building. Raising Asbestos awareness and the risk posed by this material to relevant stakeholders must be a focus for developers, contractors, and consultants. In those buildings that are to be retrofitted, refurbishment Asbestos surveys (formerly known as type 3 Asbestos surveys) should be completed, and in the event that Asbestos removal is required, this should only be conducted by trained professionals under the supervision of qualified, competent and registered Asbestos Supervising Consultants (ASCs).

MEConstructionNews.com | November 2021

THE BRIEFING

Concrete Change MIDDLE EAST

Karen Scrivener, a leading cement researcher, explains to Big Project Middle East why the concrete industry needs to look inwards if it wants to reduce its impact on climate change

s the world’s population has grown and spread across the planet in search of new habitats and resources, there have been many crucial inventions that have helped establish humanity as the dominant species on this planet. However, perhaps the most important invention in human history has been the development of concrete. In the modern era, this material and the industry behind it, has become an essential part of the economic growth and development of any country. Whether it’s the houses we live in, the roads we drive on, or the buildings we work in, cement-based materials such as concrete and mortar play a huge role in our daily lives. This dependence on concrete comes at a cost. With more than 30 billion tonnes of concrete and other cementbased materials in use worldwide, it is the second-most used material on earth after water and consequently, one of the

November 2021 | MEConstructionNews.com

biggest contributors to climate change. Despite this, Karen Scrivener, one of the world’s foremost cement researchers and a full professor at the École Polytechnique Fédérale de Lausanne (EPFL)’s Construction Materials Laboratory, asserts that concrete is actually a relatively green, environmentally friendly material when compared to other man-made materials, particularly in terms of cost, energy and emission efficiency. In an interview with Big Project ME, Scrivener explains that replacing concrete with other materials isn’t the answer the industry needs. Rather, she states that the concrete industry needs to focus on improving itself and developing the material more efficiently and sustainably. What is the concrete industry doing to change the impact it is having on climate change, and is it enough? The process of cement production is very efficient. Cement plants equipped with the best available technologies are one

Concrete improvement Karen Scrivener says that the concrete industry needs to focus on improving itself and developing the material more sustainably.

30bn Tonnes of

concrete and other cementbased materials in use globally

THE BRIEFING

of the most efficient thermal process available. Still the industry is actively working to achieve targets of lowering the carbon footprint. More and more waste materials, biomass and alternative materials are being used as fuels to reduce the use of non-renewable fuels. The composition of the earth limits the chemistries possible to make cements and there are no miracle solutions out there. Most important, is to replace as much clinker as possible with substitutes. Traditionally these have been by products like fly ash from burning coal and slag from producing iron, but these are disappearing as they come from carbon intensive industries. The use of Calcined clay allows this strategy to be taken much further with a potential to reduce CO2 emissions by more than 400 million tonnes per year. The industry is also working to adopt carbon capture and storage (CCS). However, this will require billions of capital investment and innovations in technology. Another area where there are certainly more gains possible is by improving the efficiency of use from cement into concrete and then into the final buildings. How can sustainable concrete be produced and what is EPFL doing in this regard? Sustainable concrete can only be produced by incorporating and focusing on all three major pillars of sustainability: economy, environment, and society. A sustainable concrete: • must require less energy for production, • must produce less carbon dioxide, • must reduce burden on natural resources, • must be cost-efficient, and • must be safe, serviceable, and durable. Currently, EPFL is focusing on the adoption and use of a newly developed and more sustainable cement referred to as ‘limestone calcined clay cement’: ‘LC3’. LC3 has been recognised as a promising solution to reduce carbon footprint of concrete industry by United Nations Environmental Programme (UNEP) and International Energy Agency (IEA). What is LC3? How is it produced

• Production of LC3 requires less energy compared to other cements available in market. • LC3 can be produced in the existing cement plants with low additional capital investment. • The raw material required to produce LC3, low-grade limestone and clays, are abundantly available in most countries that have high cement demand. • LC3 has comparable and even higher performance compared to most of available cements in market.

Effective solution LC3 can be an effective solution in reducing the contribution of the cement industry towards climate change.

400m Tonnes of CO2 emissions can be potentially reduced by using calcined clay

and why is it considered an effective solution compared to previous efforts? LC3 is a new family of blended cements that uses a combination of limestone and calcined clays to substitute a high proportion of energy- and emissionintensive ordinary cement. LC3 can reduce clinker content by more than 50% content without compromising the performance of concrete. LC3 can be produced using low-grade limestone and clays that are widely available worldwide as overburden in limestone and clay mines. These cements can have up to 40% lower CO2 emissions than traditional cement. The production process of LC3 is simple and can be easily adopted in existing cement plants. Raw clay is first calcined at approximately 800°C and then ground and mixed with ground limestone, ordinary Portland cement and gypsum to produce LC3. LC3 is an effective solution to reduce the contribution of the concrete industry to climate change due to several reasons, such as the following: • Production of LC3 emits up to 40% less CO2 compared to other cements available in market.

What are some of the hurdles to uptake and how can they be overcome? Outreach to cement producers to manufacture LC3 plays is the first hurdle. EPFL and the team have been working to create awareness about LC3 by organising LC3 information days, workshops and conferences such as the event on 3rd November in the Swiss Pavilion of the Expo. As mentioned earlier, LC3 technical resource centres have been providing technical support to cement producers to facilitate the uptake of LC3. Customers of the cement industry range from large industrial customers such as government, big builders, and small contractors to Individual home builders. Individual home builders account for a large part of cement consumption in developing countries. Outreach to such a large range of customers is another hurdle to the uptake of LC3 in the industry. Standardisation of LC3 at the cement level has largely been achieved, but there is still work needed on concrete standards and building codes. This is needed to encourage the use of LC3 in large construction projects. Once LC3 is successfully implemented in large construction projects outreach to Individual home builders will be easier. Can LC3 be produced in the UAE? Carbonate sources and clays make a significant proportion of geology of the UAE, which suggests the possibility of producing LC3 using the locally available materials. Considering the massive upcoming development projects in the region, LC3 can be a potential solution to make the industry more environment friendly.

MEConstructionNews.com | November 2021

THE BIG PICTURE

01 UNITED STATES

03 NETHERLANDS

Bvlgari Hotels and Resorts launches new property in Los Angeles

Mammoet’s new Focus 30 crane completes first project

Bvlgari Hotels and Resorts has signed an agreement to launch a new luxury resort in Los Angeles, with an opening scheduled for 2025, it has been announced. The agreement was signed with owner and developer Gary Safady, making Bvlgari Resort Los Angeles the second Bvlgari property in the US, with its Miami property scheduled to open in 2024, and the 12th in the Bvlgari Hotels and Resorts collection. Located in the Santa Monica mountains, The property will be surrounded by 33 acres of hillside park and natural wildlife, less than five miles from Rodeo Drive.

02 UNITED STATES

Ritchie Bros acquires SmartEquip for $175m Global equipment and vehicles auction powerhouse Ritchie Bros. Ahas announced it will acquire the US company SmartEquip, an online platform providing customers with real-time service and diagnostic support, for $175 million. Ritchie Bros. said it has entered into a definitive agreement with SmartEquip and the completion of the acquisition is subject to customary closing conditions, including, among other conditions, the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

Mammoet’s new Focus 30 crane has performed its inaugural lift, installing a vessel at the refinery in the UK in a top-and-tail operation executed Aalong with a 500t mobile crane. The global heavy lifting and transport services giant said the new Focus 30 is designed to deliver significant lifting capacity at complex sites and requires no laydown area during assembly of its boom as it is erected vertically in sections. This enables the Focus 30 to be built away from the lift-site and requires the disruption or closure of less infrastructure during its use.

04 EGYPT

06 KUWAIT

KSA and Egypt sign $1.8bn worth contracts for interconnected power grids

Tamdeen Group launches Middle East’s largest indoor multistorey go-karting track

Saudi Arabia and Egypt have signed contracts with three consortiums of international and local companies to connect the two nations power grids in a project worth a total of $1.8 billion. The electric grid interconnection project aims to exchange electrical capacities amounting to 3,000 MW with a 500kV HVDC technology. It consists of the construction of three highvoltage substations linked by overhead transmission lines and marine cables in the Gulf of Aqaba with a length of 22 km.

November 2021 | MEConstructionNews.com

05 IRAQ

Masdar to develop 1GW worth of solar projects in Iraq Masdar has announced that it has signed a strategic agreement with the Republic of Iraq to develop five solar photovoltaic (PV) projects in the country, with a combined capacity of 1 gigawatt (GW). The agreement with Iraq’s Ministry of Electricity and the National Investment Commission will see the development of the following projects: a 450-megwatt (MW) plant in the Dhi Qar Governate; 100 MW and 250 MW plants located in Ramadi; a 100 MW plant in Mosul; and a 100 MW plant in Amarah.

Tamdeen Group, the Kuwaiti mixeduse property developer, has announced the opening of the largest indoor multi-storey go-karting track in the Middle East at Al Kout Mall, its flagship retail destination in Kuwait City. A two-level rooftop location spread across 5,380sqm, Q8 Karting will be located on the 10th floor of Al Kout Mall, with a dedicated entrance from a shop inside the mall. It will also be accessible through different elevators from all levels of the indoor parking area.

01 02

THE BIG PICTURE

05 06 04

07 08

08 UNITED ARAB EMIRATES

07 UNITED ARAB EMIRATES

World’s first robot for interior paint jobs launched at GITEX A new mobile, intelligent paint robot for the construction industry, billed as a world’s first, has made its debut at the Gitex Technology Week being held in Dubai and is being demonstrated at the event. Named MYRO, the robot has been developed by the eponymous company MYRO International, which is a robotics organisation focused on solving “complex yet monotonous problems related to human productivity and workplace hazards”. The company offers distribution licences to regional partners to supply products and services to contractors and developers.

Majid Al Futtaims begins handover of Al Lailac’s second phase at Al Zahia project Majid Al Futtaim Communities and Sharjah Asset Management have announced the start of handovers for the second phase of the Al Lilac neighbourhood in Sharjah’s Al Zahia project, comprising 169 units of townhouses and courtyard villas. The handover of the second phase comes after the successful completion of the first phase of Al Lilac in March and follows the successful launch and handover of Al Jouri and Al Narjis neighbourhoods. Al Lilac will be the third neighbourhood to be fully occupied within Al Zahia.

09 UNITED ARAB EMIRATES

Bloom Holding appoints Emirates Link Maltauro as main contractor for Aldhay UAE developer Bloom Holding has appointed Emirates Link Maltauro as the main contractor for its 181-unit residential project, Aldhay. Located on the Eastern Mangrove Corniche, Aldhay is scheduled for completion in the third quarter of 2023 and will add 181 townhouses to the existing 457 villas and townhouses in the developer’s Bloom Gardens masterplanned community in Abu Dhabi. Bloom said construction work was moving at a steady pace with the enabling and piling works already completed.

MEConstructionNews.com | November 2021

THE BIG PICTURE

12 10

15 16

10 SAUDI ARABIA

12 BAHRAIN

ACWA Power and Total Solar in the running for 1,200MW KSA solar projects

NBB extends financing support to new hospital to include solar panel installation

Acwa Power and Total Solar have become major bidders for four solar energy projects across Saudi Arabia, the country’s Ministry of Energy has announced. The four projects have a combined capacity of 1,200MW. The competition is the third round of the country’s National Renewable Energy Programme and will allow bidding in two categories. The first category includes the 80MW Layla and the 120MW Wadi Al Dawasir solar projects, while the 300W Saad and the 700MW Ar Rass schemes will be offered in the other category.

November 2021 | MEConstructionNews.com

11 SAUDI ARABIA

Saudi Arabia’s PIF announces ‘The Rig’ The Rig’ has been announced by Saudi Arabia’s Public Investment Fund (PIF). Billed as the world’s first tourism destination on an offshore platform, it will span 150,000sqm, and provide several hospitality offerings, adventures, and aquatic sporting experiences. The project is expected to feature three hotels, world-class restaurants, helipads, and a range of adventurous activities including extreme sports. It is said to align with PIF’s strategy 2021-2025 to drive innovation in Saudi Arabia’s tourism and entertainment sectors, providing promising development opportunities.

The National Bank of Bahrain (NBB) has announced that it has extended its financing of the new King Hamad American Mission Hospital (AMH), which is expected to open in 2022. In addition to financing the construction of the hospital, NBB is now also financing the installation of solar panels. The hospital will be the first eco-friendly hospital in the Kingdom, covering up to 50% of its electricity requirements from photovoltaic energy. It will occupy an area of 57,000sqm in A’Ali in Bahrain.

THE BIG PICTURE

14 UNITED ARAB EMIRATES

Shurooq announces four new luxury hospitality projects 13 UNITED ARAB EMIRATES

Dubai unveils Hatta Master Development Plan HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai has approved the Hatta Master Development Plan, which is said to form an integral part of the Dubai 2040 Urban Master Plan. The Dubai 2040 masterplan was launched earlier this year to create a roadmap for enhancing infrastructure and implementing a series of development projects and initiatives across the emirate over the next 20 years. It also aims to transform Hatta into an attractive local and international destination for business, investment and tourism.

The Sharjah Investment and Development Authority (Shurooq) has announced that the Mysk Moon Retreat has begun welcoming guests and bookings to experience the emirate’s first-of-itskind luxury glamping destination. The authority also unveiled four new luxury hospitality projects – they include Al Jabal Resort in the city of Khorfakkan, a luxury hotel in the city of Kalba, another hotel in Khorfakkan, which will feature the first waterpark on the UAE’s East Coast, and Al Bridi Resort, which is part of the Sharjah Safari project in the city of Al Dhaid.

15 UNITED ARAB EMIRATES

Dubai Investments to develop $272m mixeduse project on RAK’s Al Marjan Island

A $272m mixed-use beachfront residential, beach resort and lifestyle destination will take shape on Al Marjan Island, following a land acquisition deal that Dubai Investments signed with Ras Al Khaimah-based master-developer Marjan. The project will be designed to provide a perfect amalgamation of hospitality, and residential elements inclusive of a beachfront resort, beachfront serviced apartments and beachfront villas plus waterfront residential buildings, retail and F&B components along with other recreational facilities.

17 INDIA

16 INDIA

Wirtgen paver sets world records during Indian highway construction A Wirtgen SP 1600 slipform paver has set four world records during the paving of a stretch of a new highway being constructed in India linking the cities of Mumbai and New Delhi. The SP 1600 set the record for the longest distance of motorway paved in 24 hours, completing a 2.56km fourlane stretch and its hard shoulder withing 24 hours. The stretch has a working width of 18.75m over the entire distance and the entire effort led to the creation of three more world records.

India’s L&T says Middle East projects constitute 61% of $9.3bn order book

Indian construction conglomerate Larsen & Toubro (L&T) has said that the Middle East is one of its key growth regions, constituting almost 61% of the company’s international order book, worth $9.3 billion. The region also accounted for 13% of its total order book composition. In FY21, Middle East contributed the highest order backlog after its India order book, contributing 12% to its total revenue. The company’s portfolio strategy targets a well-balanced and geographically diversified businesses.

18 INDIA

India announces Mou with Dubai for investment in J&K The Indian government has announced that it has signed an accord with Dubai to build infrastructure in Jammu and Kashmir, marking the first investment agreement by a foreign government in the troubled Himalayan region since the withdrawal of its autonomy and its division into two territories directly ruled from New Delhi. The MoU will see Dubai – part of the UAE – building infrastructure such as industrial parks, IT towers, multipurpose towers, logistics centres, a medical college, and a speciality hospital.

MEConstructionNews.com | November 2021

MARKET REPORT

Industry outlook

Cairo hospitality shows beginnings of recovery

EGYPT

JLL report finds that third quarter of the year has seen the sector turn a corner

airo’s hospitality sector is shaking off the impact of the global pandemic and gradually showing signs of recovery, according to JLL’s Q3 2021 Real Estate Market Overview report. While performance is not yet back to pre-Covid levels, the third quarter has seen the sector turn a corner with occupancy rates registering 41% in the YT August 2021, compared to 29% in the same period of last year. Helping to boost the sector has been the Egyptian government’s easing of flight restrictions and the permitting of hotels to increase operational capacity from 50% to 70%. This also follows the notable increase in vaccination rates over the past quarter.

November 2021 | MEConstructionNews.com

This relaxation of rules has worked to the advantage of hotel operators with domestic tourism slightly increasing as people opted for staycations rather than travelling abroad over the summer season. A modest increase in tourism from some of the Gulf countries also helped over the three-month period. “Over the medium to long-term, the rate of recovery will be dependent on the government’s efforts in speeding up the rollout of its vaccination programme, coupled with its strategy to enhance and deliver new and existing tourist destinations,” said Ayman Sami, Country Head, JLL Egypt. The opening of Hyatt Regency West Cairo marks the first hotel completion of the year. Around 250 keys were delivered in Q3 2021, bringing the capital’s total stock to around 28,000 keys. Almost 200 keys are expected to be delivered in the fourth quarter. The occupancy rate registered 41% in the YT Aug 2021, compared to 29% in the same period of last year. This, combined with a 3% year-on-year rise in average daily rates (ADR), meant that revenue per available room (RevPar) rose by 45% to USD 35 in Q3 2021.

In terms of retail performance, activity in Cairo slowed in Q3 as local residents headed to the North Coast for the summer season. Retailers followed by expanding their offerings in the northern cities in the form of smaller popup shops to satisfy the higher levels of demand. “What we observed is that as activity slowed this quarter, developers in Cairo took the opportunity to study their tenant mix and assess which new concepts they could bring to the market to increase footfall and dwell-time,” said Sami. “An option that some developers have been exploring is attracting those brands to the capital which have had success on the North Coast, especially the unique Lebanese and local F&B concepts,” he added. Around 15,000 sqm. of retail space was completed in Q3 with the delivery of Gateway mall bringing the total retail stock to 2.5 million sqm. Around 57,000 sqm. of GLA is expected to enter the market by the end of this year. Looking ahead, activity in Cairo’s retail sector is expected to increase in the fourth quarter as people return from their summer vacations and the focus shifts back to the city.

MARKET REPORT

CAIRO RETAIL SUPPLY 2021

2.5M

CHANGE IN 2021 RENTS ACROSS CAIRO MALLS

57,000

Total Retail Stock (sq m GLA)

Primary Malls

Q4 2021 Deliveries (sq m GLA)

Secondary Malls

What we observed is that as activity slowed this quarter, developers in Cairo took the opportunity to study their tenant mix and assess which new concepts they could bring to the market to increase footfall and dwell-time” CAIRO HOTEL SUPPLY 2021

28,000 Total Keys

CAIRO HOTEL OCCUPANCY RATE

41%

200

29%

YT August 2021

Q4 2021 Keys

YT August 2020

CAIRO HOTEL AVERAGE DAILY RATE 2020-2021, US DOLLARS 2021 Average Daily Rate

US$85 2020 Average Daily Rate

100

US$83

CAIRO HOTEL REVENUE PER AVAILABLE ROOM 2020-2021, US DOLLARS 2021 RevPar

2020 RevPar

US$24 10

Source: JLL, STR Global

US$35

MEConstructionNews.com | November 2021

ANALYSIS

Contract outlook

Value of awarded contracts in KSA reaches $6.9bn in Q2 2021

SAUDI ARABIA

US – Saudi Business Council report says that sector’s Q2 performance marks the third consecutive quarter of growth after the pandemic

he total value of awarded contracts during Q2’21 climbed to $6.9 billion, according to a report by the US – Saudi Business Council, marking three consecutive quarters of growth after pandemic induced slowdowns caused values to bottom out during the third quarter of 2020. The value of awarded contracts grew by 34% QoQ and by 134% YoY.

USSBC’S CONTRACT AWARDS INDEX PERFORMANCE THROUGH Q2 2021 The USSBC Contract Awards Index (CAI) climbed to 101.74 points to end the second quarter. The gradual rebound in the CAI is attributed to an uptick in awarded contracts during H1’21 following delays in awarding and executing numerous mega-projects in 2020. The CAI grew by 9.44 points QoQ as it elevated above the 100-point threshold following two consecutive quarters of contraction. BREAKDOWN OF AWARDED CONTRACTS ACROSS TOP PERFORMING SECTORS Power: The power sector witnessed 13 contracts during Q2’21 as it maintained its lead from last quarter as the highest awarded sector. The power sector grew by $642 million or 46% QoQ and by a substantial$1.9 billion or 207% YoY. This marks the highest value of awarded contracts in the power sector since the fourth quarter of 2015, when

November 2021 | MEConstructionNews.com

it tallied $3 billion. Impressively, the power sector’s $3.4 billion in H1’21 surpassed the total value of awarded contracts in all of 2020, which reached $2.2 billion. The power sector in H1’21 grew by $2.6 billion or 77% YoY. Petrochemicals: The petrochemicals sector had no contracts awarded last quarter but surged to the second highest ranking during Q2’21 with $1.2 billion on only three contracts. The petrochemicals sector had no awarded contracts during the same period last year but did have sizeable contracts that were awarded in the first quarter prior to the pandemic. For H1’21, the value of awarded contracts in the petrochemicals sector was $1.1 billion or 48% lower YoY. Water: The water sector had five contracts that were awarded during Q2’21 that were valued at $878 million. The value of awarded contracts grew by $305 million or 53% QoQ but declined by $272 million or 24% YoY. Through

Growth in the Kingdom Saudi Arabia has marked three consecutive quarters of growth after pandemicinduced slowdowns.

Fragile footing KSA’s construction sector is still on fragile footing as it faces a number of headwinds despite the improvements seen.

Number of power sector contracts awarded in Q2 2021

ANALYSIS

H1’21 the water sector has witnessed $1.5 billion worth of awarded contracts, which is $451 million or 24% lower than the same period last year. Transportation: The value of awarded contracts in the transportation sector was marginally lower than the water sector as it finished the quarter with $855 million. This brings the total value of awarded contracts through H1’21 to $1.4 billion, which has already surpassed all of 2020’s awards of $1.3 billion.

earmarked for 2021. The recovery in oil prices has largely supported the reduction in the Kingdom’s deficit, which was expected to reach $38 billion by end of 2021 yet has only accounted for 9% of that amount through the first half of the year. Typically, the rise in oil revenues has prompted the Kingdom into a procyclical spending pattern, with capital expenditures being a main beneficiary. A positive development is the strong pickup in the Kingdom’s Gross Fixed Capital Formation (GFCF) thus far in 2021. One of the major impacts on the economy stemming from the pandemic was the reduction in construction

Resilient Kingdom Albara’a Alwazir says that the growth in Q3 is a reflection of its resiliency as it pursues advancement of its physical and social infrastructure.

8.4%

Growth of non-oil sector in Q2 2021

activities whereby investments on capital goods significantly declined. Delayed and suspended projects halted new demand for machinery and ongoing improvements to land. GFCF declined by 13% YoY by the end of 2020 after dropping as low as 24.8% during Q2’20. The resumption of construction activities by the end of 2020 saw GFCF gradually increase resulting in a gain of 18.3% YoY during Q2’21 and by 7.2% QoQ. As the number of construction activities continue to increase, GFCF will return to pre-pandemic levels and increase the level of investments in unfinished dwellings, non-residential buildings, and civil engineering works. The rebound in housing starts thus far in 2021 also bodes well for the construction sector as this data point serves as proxy for upcoming residential real estate developments. Housing starts remained relatively robust in 2020 despite the pandemic but still lagged compared to 2019. The pickup in housing starts during H1’21 reflects an increase of 16,442 starts or 10% increase YoY. Furthermore, mortgages remain elevated with $2.25 billion worth of issuances in July 2021. Pent-up demand for affordable housing coupled with the government’s goal of achieving a 70% homeownership rate by 2030 will keep the residential real estate sector’s construction activities vibrant over the medium to long-term.

USSBC CONTRACT AWARDS INDEX PERFORMANCE, 2015-2021 400

300

200

2021

2020

2019

2018

2017

2016

100

2015

CONTRACT AWARDS OUTLOOK “The construction sector continues to witness a rebound in contract awards thus far in 2021 despite ongoing challenges due to the pandemic. The consecutive growth in awarded contracts over the last three quarters after bottoming out during the third quarter of 2020 reflects the resiliency of the Kingdom’s pursuit to advance its physical and social infrastructure,” said Albara’a Alwazir, Director of Economic Research at the US – Saudi Business Council. However, he warns that the construction sector is still on fragile footing as it faces a number of headwinds that must be accounted for as it continues to improve. Alternatively, the sector is benefiting from a number of tailwinds as well, which will be significant drivers in the resurgence of the sector to pre-pandemic levels. Beginning with the tailwinds, the macroeconomic landscape continues to improve on the back of a resurgent non-oil sector, which grew by 8.4% during Q2’21 YoY in real terms. Despite the lower base effects caused by the pandemic, a number of economic activities still registered remarkable growth such as non-oil manufacturing, which grew by 15.3%; wholesale & retail trade, restaurants and hotels grew by 16.9%; community, social, and personal services grew by 17.1%; construction grew by 3.2%. Furthermore, the rise in oil prices, which crossed the $80 per barrel mark in September and the gradual increase in production bodes well for future investments into the domestic economy. The Kingdom’s total revenues through H1’21, which reached $121 billion is on pace to surpass the budgeted $226 billion

MEConstructionNews.com | November 2021

IN PROFILE

Trimble

Digital Horizons JASON SAUNDALKAR TALKS TO TRIMBLE SOLUTIONS’ PAUL WALLETT ABOUT THE ADOPTION OF NEW TECHNOLOGY AND DIGITALISATION FOLLOWING THE OUTBREAK OF COVID-19

| MEConstructionNews.com | MEConstructionNews.com October 2021 November 2021

MEConstructionNews.com | November 2021

IN PROFILE

espite the growing complexity of projects, pressure on margins and other challenges, the construction industry has been slow to embrace technology and digitalisation. Paul Wallett, regional director, Trimble Solutions - Middle East and India states, “Prior to the outbreak of the pandemic the primary drivers were predominantly related to the type and complexity of projects we see across the Middle East region, architecturally challenging in nature, which necessitated the need for better tools to help execute on time and within the budget. Most of the design, engineering firms and contractors involved in these projects had implemented BIM to some degree, as well the tender documents incorporated BIM standards as a mandatory requirement for companies to qualify on the bids.” “The caveat to that, however, was the level of detail that was a matter of debate and often left open, as long as a master BIM model was supplied back to the owner/operator at the end of

Great leap forward One upshot of the COVID-19 pandemic is that the construction industry has leapt forward five years in the adoption of digital workflows and processes.

19,200

Total builtup area, in metres2, at the UAE Pavilion

the contract. Most often, the work was completed using traditional 2D methods.” He adds, “With the onset of COVID and remote working, many companies who were otherwise able to get by using a mix of traditional approach and contract BIM requirements to adopt model-based workflows, are now having to digitise to survive. The outcome of COVID-19 has been a large uptake in model-based cloud sharing platforms and services to collaborate, coordinate and share data with the stakeholders. As per a McKinsey report, the industry leapt forward five years in the adoption of digital workflows and processes as a consequence of the pandemic. At the beginning of the lockdown, to keep the wheels of the construction industry moving, we offered our cloud model

sharing solution Tekla Model Sharing free of charge to support our customers.” THE PANDEMIC PUSH Describing the 2020/2021 period, Wallett notes, “2020/2021 has proved to be a watershed year for the adoption of digitalisation and technology in the construction industry. The general slowdown or even the complete shutdown seen during this period pushed many industry players into relooking at their operating models and making some much needed changes, most prominently related to digitalisation and automation. Trimble saw significant uptake in cloud-based technologies such as Trimble Connect and Tekla Model Sharing across the Middle East region since the outbreak of COVID-19.”

Companies are finding that most construction waste can be reduced or eliminated by adopting a constructible process utilising digital tools and data in building information models (BIM) at the outset of a project” November 2021 | MEConstructionNews.com

IN PROFILE

Wallett notes that the nature of the industry is such that there is a fair bit of dependence on the presence of a large volume of workforce onsite for physical work. The non-physical work that includes architectural design, planning and structural engineering happens offsite; but the industry is yet to embrace true digitalisation and automation to an extent that will help it efficiently execute and manage offsite workflows as well.” He comments, “To accelerate this process, Trimble has taken affirmative actions to support its customers’ businesses through enhanced productivity. By moving to a subscription only approach, we have widened the reach and availability of our flagship product, Tekla Structures, the flagship BIM software. Our offerings enable seamless collaboration over the cloud, allowing the users working remotely to deliver without loss of efficiency, which is very much the need of the hour during this worldwide medical emergency.” Discussing the rationalisation for offering subscription-based services, Wallett states that the move came from a desire to better service its customers and the broader industry. “The pandemic

has changed the way industries used to function and our customers have massively accelerated their digitalisation efforts since last year and are now depending on remote working more than ever. We stand committed to helping our customers generate the maximum value out of their investments in our technologies and solutions. And our shift

Worth the effort Although the shift to a subscription model is an extensive process, and necessitates wide-ranging changes throughout an organisation, customers stand to gain tremendously.

from perpetual licenses-based model to a subscription-based model underlines this commitment. This allows our customers to minimise their capital investments and avail services to whatever extent and for as long they wish to use,” he remarks. “Businesses across industries are assessing how best they can embrace op-ex models for investments in technologies, machinery as well as other assets. The global technology industry is also responding to this trend and is increasingly offering software on a subscription model, as it offers better flexibility and control over cash flows, and lower entry costs.” He adds, “The shift to a subscription model is an extensive process, and necessitates wide-ranging changes in the technical, business architecture and operational aspects of an organisation. We believe it was all well worth the effort, as our customers stand to gain tremendously from subscription-based offerings and pricing in terms of two key benefits: lower costs that are tied closely with business value generated from these investments, and access to latest features and innovations speedily and easily. The shift allows many more new customers to start

MEConstructionNews.com | November 2021

IN PROFILE

adopting world class tools, democratize technology and bring its benefits to their doorstep, impacting the society at large in an expansive, positive way.” INDUSTRY TRENDS & CHALLENGES Speaking about prevalent trends in the regional construction industry, Wallett points to digitalisation and sustainability as key trends driving the industry. He notes that these two trends are critical to ensure sustainable growth in the industry going forward. He remarks, “The AEC industry in the region is now waking up to the need to digitalise construction sustainably and is increasingly recognising its long-term benefits and business value. With the region’s construction industry projected to grow at an average annual rate of 3.8% by 2025, Trimble’s Connected Construction is already responding to the projected demand.” “Sustainability starts with connected construction and the answer to increasing sustainability and lowering the construction industry’s carbon emissions, costs, and material waste lies in connected construction. However,

Driving the industry Digitalisation and sustainability are two of the key trends driving the construction industry forwards.

November 2021 | MEConstructionNews.com

to eliminate waste, boost productivity, and truly enable a connected team, changes must be applied across the entire construction continuum.” He elaborates, “Before construction begins, architects, engineers and designers can use software and analytics technology such as SketchUp PreDesign and Sefaira to create eco-friendly models,

while also considering other aspects of the project’s environmental impact such as material, water, and energy needs. With advances in technology, users can explore different concepts nimbly and with ease, without fully defined parameters, to make sustainable design decisions.” “Advances in building performance analysis tools allow answering questions early on about heating and cooling loads, lighting, appliances, and other energy demands of the completed project, owners can make more informed decisions about the long-term environmental impacts of their projects.” “Companies are finding that most construction waste can be reduced or eliminated by adopting a constructible process utilising digital tools and data in building information models (BIM) at the outset of a project. With this approach, all phases and trades are connected, models and workflows are contentenabled, and data-rich constructible models drive smarter workflows. These models include construction-ready content that is easily accessible through open formats. A key part of this process is the constructible, data-rich 3D model that goes beyond simple geometry and contains accurate and intelligent information that can be used throughout the project lifecycle,” he comments. “File-sharing systems can ensure that everyone has the most recent set of plans and is working toward the same goals. By collaborating with all stakeholders, knowing what is expected and having the right equipment in place, there is less room for error. It puts forward an advanced method which embraces the need for greater accuracy and efficiency for all construction industry players, which include architects, engineers, contractors, and owners.” “With increased awareness and focus on sustainable construction, and with connected construction at the core, the regional industry will only hasten the adoption of technology solutions. Already, AEC companies globally have experienced high success in project delivery using Trimble technology, both at the job site and in office, reporting up to 50% less rework, up to 30% cost savings, informed decision making, and up to 30% increase in machine productivity and fuel savings.”

Asked about some of the common issues construction companies in the region deal with on projects, Wallett explains, “Miscommunication, lack of coordination, and data misinterpretation are some of the key issues the AEC firms often face in their day-to-day work. These issues have consequences because they give rise to errors such as data entry duplication; there have been instances of disputes among contractors, engineers, and business owners; resulting into decreased productivity.” “Trimble’s portfolio of software can help narrow the gaps and resolve the issues. These solutions are designed to connect stakeholders including architects, engineers, fabricators, MEP contractors, general contractors, construction managers, and building

owners and occupiers, whether they are in the office or on-site, and achieve transformative results. This seamless collaboration and coordination make the process of construction quicker, safer and more cost-efficient thus enhances productivity and leads to better utilisation of materials, assets and workers.” A TECH DRIVEN INDUSTRY New technology and solutions are coming to the market, some of which are expected to have a significant positive impact on the delivery of projects. Commenting on new technology that could potentially become more commonplace in the industry, Wallett notes, “The construction industry is already witnessing many changes with increasing customer sophistication,

The greatest defence Connected construction is the greatest defence against the inefficiencies that stem from data locked up in silos, says Paul Wallett.

29,695

Total builtup area, in metres2, at Alif - The Mobility Pavilion

higher emphasis on total cost of ownership than just initial investment, updated regulations for safety, sustainable construction, building codes standardisation, and digitalisation of processes. These disruptions have led to various innovations such as modular, factory-based approach to construction, data driven digital workflows (constructible BIM), automated prefabrication in off-site ‘factories’, Augmented Reality (AR) to robotics or drone-powered scanning technology.” “We believe that connected construction is the greatest defence against the inefficiencies that stem from data locked up in silos, and effective use of data has the potential to impact AEC sector’s efficiencies like never. With intelligent data fueling fabrication, prefabrication, and lean construction, companies can reduce waste, improve productivity, and increase profitability across the project. Prefabrication is already contributing to creating more sustainable models by enabling companies to build components in a controlled environment with all necessary tools and equipment readily on hand, which increases speed and predictability, and we expect it to grow speedily in the future.” “What COVID-19 and the oil price fall of last year did was to focus minds on accelerating economic diversification and digitalisation of processes, and from that we expect many new opportunities to emerge,” he concludes.

Sustainability starts with connected construction and the answer to increasing sustainability and lowering the construction industry’s carbon emissions, costs, and material waste lies in connected construction” MEConstructionNews.com | November 2021

September2021 November 2021| |MEConstructionNews.com MEConstructionNews.com

PROJECT PROFILE

The Red Sea Development Company PROJECT NAME: The Red Sea Project CLIENT: The Red Sea Development Company LOCATION: Saudi Arabia TOTAL PROJECT AREA: 28,000 square kilometres

Taking the Lead BIG PROJECT ME LEARNS HOW THE RED SEA DEVELOPMENT COMPANY’S IMPLEMENTATION OF BIM IS NOT ONLY IMPROVING THE WAY IT IS DEVELOPING THE TOURISM MEGAPROJECT, BUT IS ALSO RESHAPING HOW THE SAUDI ARABIAN CONSTRUCTION SECTOR OPERATES | November | August 2021 MEConstructionNews.com MEConstructionNews.com

PROJECT PROFILE

arlier this year, The Red Sea Development Company, the developer behind the ambitious regenerative tourism project, announced that it had become the first asset owner in the world to achieve the prestigious BIM Project Kitemark, awarded by the British Standards Institutions (BSI) for its digital project delivery and adoption of Building Information Modelling (BIM), aligned to ISO19650. ISO19650 is a series of international standards for the effective management of information throughout the delivery and operational phase of construction. TRSDC was awarded the BIM Project Kitemark for its excellence in information management, which has enabled the developer to embed best practice throughout its organisation and indeed, its partnerships on the megaproject. Established in 2018, TRSDC deployed BIM right from the start and has continuously looked to develop its digital project delivery services since then. The company says that using BIM has helped it create a shared environment that allows international teams to continue

Deployed from the beginning BIM technologies and processes were deployed from the start of The Red Sea Development Company’s operations.

2023

Scheduled completion date for Phase One

November 2021 | MEConstructionNews.com

working at pace, despite challenging COVID-19 impact environments. Furthermore, it highlights that the use of digital techniques has meant that better quality, data-driven decisions, are able to be made in much shorter timeframes – days, rather than weeks, for instance. TRSDC asserts that BIM is a core part of its ‘model-first’ environment, and that it has been working closely with project partners to build BIM capabilities across all facets of its operations on the megaproject. In turn, it hopes that this total embracement of BIM will have a positive impact on the Saudi market for future digitally enabled projects, with benefits

such as the minimisation of waste by using Design for Manufacture and Assembly techniques and the utilisation of modern methods of construction, such as off-site manufacturing, becoming commonplace throughout the Saudi construction industry. With the Red Sea Project having passed significant milestones and with work on Phase One – which includes work on 16 hotels and the project’s international airport – on track to be completed by 2023, Big Project ME spoke to Ian Williamson, chief project delivery officer, and David Glennon, senior digital delivery director, about how TRSDC’s deployment of BIM has helped the project progress, and why its role as a digital leader is so crucial for the future of the Kingdom’s construction sector. “We’re 40% of the way through Phase One delivery and we’ve just committed more than $3.19 billion worth of contracts, and we’re awarding at just over a rate of $266.6 million a month. We’ve spent around $1.59 billion of cash on the project. A lot of our infrastructure in terms of roads and highways has been built, and on the marine side, jetties to get out from the mainland, allow access to the islands, and so on, have been completed,” says Williamson. “We’ve awarded ACWA Power the utilities PPP, so that project is mobilised, trenching is starting, and the first works are getting done on the utilities side. We’ve got a contract for the distribution of utilities, which is with CCE for our Coastal Village, and we’ve got about 200 buildings there that are set to be handed over by December (this year). We’ll have the first 8,000 homes effectively built in the Coastal Village by the end of the year, fully commissioned and handed over to our operations teams. With TRSDC taking over its offices there in August this year, Williamson adds that operations on the megaproject are rapidly moving from early works to the building of completed projects. With plenty of work to be done between now and the end of 2022, which is when The Red Sea Project is scheduled to begin welcoming its first guests, it is all systems go for the project team. Given the vast scale of The Red Sea Project, as well as the amount

PROJECT PROFILE

The lack of ability to travel and do things dynamically meant that we’ve had to advance everyone’s understanding of technology to be able to enable not just meetings, but walking into the physical space utilising BIM technology” of work being carried out across the different packages, leaning on technology is the certainly the only way forward for the developer. To this end, the work carried out by David Glennon and his Digital Delivery team has been essential to the continued success of the project. While technology has been embraced since the beginning of operations, he reveals that it has only been over the last 18 months that its uptake has really accelerated – thanks in no small part to the COVID-19 pandemic. “If you look at about two years ago, we were being relatively traditional with how we were (doing things), but with the beginning of home working

and not being able to get together, it accelerated the way we’re using some of these digital techniques. One of the things that we’ve done is deploy a collaborative design platform and make it available to everyone. We’ve given all the consultants and contractors the tools collaborate, and we’ve given them really in-depth training on how to come together and collaborate,” Glennon explains. “The lack of ability to travel and get into meeting rooms and do things dynamically meant that we’ve had to advance everyone’s understanding of technology to be able to enable not just meetings, but walking into the physical space utilising BIM technology,”

Advancing understanding David Glennon and his team have worked tirelessly to educate and train TRSDC’s project partners in using digital tools.

Number of hotels to be built in Phase One

Williamson elaborates. “COVID has certainly accelerated – by a few years – the embracement of technology at all levels, right from the CEO down, and through the organisation. And it’s not just at The Red Sea Development Company, but across our huge supply chain around the world.” “We’ve also started to use some lean design techniques, which has meant that we’ve been able to change our traditional design review processes – which may take weeks – down to days, and in some cases, hours,” Glennon relates. “By bringing all the information together and getting all the key stakeholders into a room at the same time, we’ve been able to very quickly identify what the top four or five issues are, feed that back to the project partners, and get them moving again. This then gives us a couple more days to go into a bit more detail and feed that back to them as well,” he says, adding that while some of this work is reflected in the Kitemark award, a lot of it is done by closely working with partner organisations and understanding how they operate, so as to help them shift towards a common way of working for all parties. Williamson points that as the developer behind one of Saudi Arabia’s biggest and most influential projects, the initiative and leadership has to come from TRSDC. By setting the standard for the rest of the industry, the hope is that other organisations and companies will follow

MEConstructionNews.com | November 2021

PROJECT PROFILE

suit, thereby organically raising the level of the sector’s digital transformation. “We have to set the scene, the standards, the vision and the intent. BIM has clearly been embraced by structural engineering organisations at least 10 years ago, and MEP has been catching up, but certainly on the architect side, they’re loathe to embrace what we’re asking for. Interior design and landscape as well, that is not something they’ve historically engaged with. “We’ve got 10 consultants on a hotel project and trying to get all parties to similarly engage is a challenge. Some are clearly more advanced than others, but David and his team are working hard to pull everyone up to the same level. Even the consultancy specialisations that have not embraced it before are being encouraged to come onside. Sometimes, it’s a bit of a carrot and stick approach from us. We’re persuading and cajoling, encouraging and pointing out the merits to some, but sometimes we have to be a bit more contractual and highlight the contractual obligations that they have to fulfil and that they’ve signed up to,” Williamson states. Despite these challenges, Glennon points out that the benefits are rapidly becoming apparent to the industry,

200

Buildings set to be handed over before December 2021

November 2021 | MEConstructionNews.com

with many partner companies realising the potential BIM offers and are willing to learn how to best utilise it. “We’re driving it as the developer and once we’re clear why we want the data in a certain way, so as to drive other processes, they get it and understand it. What I think is more interesting however, is that the contractors who aren’t using it, they know that this is their opportunity to learn from us and the partners around them. We’re

definitely starting to see a change in the market in that regard, especially at the contractor level, where they’re starting to use the data and tools,” he reveals. “They start to understand that here is an opportunity to learn and grow as an organisation, and to be ready for the next project. (Once they understand that), they’ve actually been really pleased to get involved.” Glennon adds that the BSI Project Kitemark has been helpful in this regard, with professionals working at local contractors and consultants seeing it as the level that they need to achieve within the industry. Furthermore, he reveals that off the back of the award, training providers are now wanting to provide their services to organisations within the country, which was something almost impossible to imagine 18 months ago. “As a developer, we’re going to have to live with these assets for the next 50 years of their lives,” says Williamson, “So, we’re in a unique position, where we’re specifying the requirement, defining a source of funding, and we’re building it. Ultimately, however, the real long period is the operations side. Most of these assets will go up within three to five years of their inception, and we can manage the whole digitalisation over the course

PROJECT PROFILE

of a 25-years or longer lifecycle. It proves its worth – during design, that’s well established and self-evident; it’s starting to prove its worth during construction, it could go a lot further; and eventually, we’ve got to take it further and figure out how we can take complex sets of data and really assist the operations and FM teams to really utilise it. “It can be quite daunting to receive an avalanche of information, so we need to start working out how to simplify how they can get access to the right information. But we’re in a uniquely privileged position of dealing with the whole lifecycle of an asset, so therefore, it almost has to be us to trigger the standards and their application,” he adds. “We have a real opportunity for this to be the case study for how this is done in a real and meaningful way,” Glennon says, “I’ve worked on many projects and in many organisations over the years where we’ve handed the project over in a good way, but we know that there’s been a missing link, and that we’ve handed it over to an asset manager who won’t really use the data that’s come out of it, and that seems like such a waste.” One example of TRSDC’s commitment to effectively utilising data is its recent partnership with The King Abdulaziz City for Science and Technology (KACST), which will see it provide high-resolution satellite data of key locations at The Red Sea Project. This satellite imagery will

As a developer, we’re going to have to live with these assets for the next 50 years of their lives. So, we’re in a unique position, where we’re specifying the requirement, defining a source of funding, and we’re building it”

improve the ability of teams to track construction progress, while at the same time closely monitor the environment for any unexpected changes, and respond appropriately, if needed. This satellite data will be integrated into TRSDC’s Geographic Information Systems (GIS) and Building Information Models to provide seamless access to the imagery for TRSDC’s planning, engineering and environmental departments. Specifically, TRSDC’s GIS department will overlay the latest

Detailed data The satellite data from KACST will help the TRSDC team to monitor progress across the massive site, and show change over time.

Long-term vision Ian Williamson says that TRSDC’s commitment to digitally-empowered construction is due to its long-term vision for its assets.

masterplans and detailed designs onto the satellite data to monitor progress and detect clashes. The data will also be used to identify optimal routes/ sites for construction activities in addition to becoming an invaluable addition to monthly progress reports. “We’ve got a GIS platform that’s now up and running, and becoming more available to suitable parties,” Glennon says. “The satellite imagery is just another layer of data that’s in there as we’ve got lots of surveys and sensors, but the advantage is that it shows us changes over time. So, from a construction perspective, every month, we get a fresh layer on top of (existing data). That’s helpful for us to understand where things are, where things have moved, and where the progress is happening, and make the changes required for logistics and all of that. “It can also help us if there are disputes in a contract as we have got factual data (to refer to), but personally, I think it’s more interesting for the environmental team, as they’ll get regular updates from the satellites and they’ll be able to look at the real impact of activities on site. It may not give them the answers, but it will give them an indication that they need to go and look at something,” he adds in conclusion.

MEConstructionNews.com | November 2021

EXPERT VOICE

HKA

The Causal Link and the Dark Art in Delay Claims MIDDLE EAST

Nader Emile, director and regional manager, KSA at HKA, shares the secrets of delay analysis in construction claims

ne of the main hurdles in construction delay claims is establishing the causal link. This requirement stems from the general principle of reparation under the law of negligence in that where the fault of a person causes harm or damage to another, resulting in losses, the person who committed the fault is liable to compensate the person who suffered the loss. The same principle, pivoting

November 2021 | MEConstructionNews.com

on the causality element, has permeated through the contract law. From a project delay perspective, the claimant needs to establish the causal link between the claimed event (cause) and the resulting delay or loss (effect). In terms of legal liability, a distinction is to be drawn between two stages of establishing causation. Factual causation is established by proving that the breach or the fault of the defendant has as a matter of fact caused damage

or loss to the claimant, whereas legal causation needs to be established before holding a defendant liable for his act that, as a matter of fact, caused harm. FACTUAL CAUSATION The claimant has to establish that he would not have suffered any damage or loss ‘but for’ the act of the defendant . However, there could be more than one event causing the loss. In such a case, by applying the ‘but for’ test, none of the events could qualify as the cause of the loss.

FOR MORE INFORMATION Please visit the HKA website at: www.hka.com SIMULTANEOUS CAUSES: Where there is more than one event happening simultaneously and each event alone would have caused the loss, (‘concurrent causes’). The claimant would only be required to establish that the claimed event has materially increased the risk of the loss happening. Where more than one event happening simultaneously combined to produce one single result that would not have occurred had each event happened in isolation, i.e., where each event is necessary but alone not sufficient (‘cumulative causes’), it would be enough for the claimant to prove that the claimed event has made a material contribution to the loss. CONSECUTIVE CAUSES: In other cases, the events happen to be successive, (‘consecutive causes’), and each cause would have resulted in the claimant’s loss had it happened alone. Case law highlights three distinct scenarios. 1. The first scenario is where the effect of the first event is extinguished by the second event. This is where the immediate cause of the loss is clearly attributable to the second event and not the first, and therefore the effect of the first event, by way of the second event’s existence, could never manifest. In this case the causal link is only established with regards to the second event. 2. The second scenario is where the effect of the preceding event is still continuing in a way so that the succeeding event had no effect at all, and hereby the causal link is only established with regards to the preceding event. 3. The third scenario is when the effect of the preceding event combines with the effect of the succeeding event to produce the same damage. The two events here are ‘duplicative causes’ and they are often referred to as ‘concurrent in effect’.

CAUSAL LINK AND DELAY ANALYSIS The causal link mostly intersects and intertwines with the, often perceived, dark art of delay analysis, which is mainly concerned with investigating the reasons that caused a project to be late. In that regard, the same causation principles apply. For instance, an important distinction is being highlighted nowadays between a concurrent delay and a non-critical delay. It is held that an Event B cannot be considered as a concurrent cause of a delay where another Event A had already caused the delay , or where the delay due to Event A had already started to take effect before Event B started, even when Event B alone would have delayed the project in any event. The causal link in this case would be established with regards to Event A. This principle is one of the main tenets of the Time Impact Analysis method of delay analysis (TIA), which requires that the delay impact of a particular event be assessed with reference to a programme that is updated with

progress just before the start or trigger date of the event .

From a project delay perspective, the claimant needs to establish the causal link between the claimed event (cause) and the resulting delay or loss (effect)”

LEVEL 1 - DELAY TO PROGRESS (ACTIVITY LEVEL) Establish what delayed the 1st floor columns

TWO MAIN LEVELS OF PROVING FACTUAL CAUSATION Evidently, in project delay claims, demonstrating factual causation applies on two main different levels. The causal link has to be established first at the level of the impacted activity, including the determination of the root cause, and second at the level of the overall project completion. In that regard, a project delay is considered to have been incurred if an event which actually occurred and actually impacted the works (level 1), caused delay to the project completion or is going to cause delay according to the programme (level 2). Therefore, after having established the causal link between the event and its impact on the works, the claimant has to demonstrate that the event has delayed the critical path of the project, since the critical path is determinative of project completion at any point in time.

LEVEL 2 - DELAY TO COMPLETION (PROJECT LEVELS) Establish that the delay in columns delayed/will delay Project Completion Delay Event 1

Design changes by Employer? Mis-management by Engineer?

Delay in Shop drawings approval?

Mis-management by Contractor? Change of law/regulations?

Lack of resources?

Increased scope Unforeseen site obstacles?

Additional work?

Employer’s instructions? Contractor’s decision?

Resequencing?

Employer’s requirements? Poor workmanship and re-work?

Additional inspections?

Exceptionally adverse conditions? Expected seasonal conditions?

Weather?

Investigation/Substantiation

Path 1

Project Completion Delay Event 2 Delay in constructing Structural Columns 1st Floor

Path 2

Programme/Delay Analysis

MEConstructionNews.com | November 2021

COMMENT

Industry insight

MOHAMED SWIDAN PROCORE

What the Projects of the 50 means for Construction

t’s an exciting time for the UAE. The ongoing unveiling of the Projects of the 50, a raft of projects celebrating the 50th anniversary of unification and driving the nation’s next phase of growth, is making history. So far, we’ve seen new investment commitments, evolved work regulations and even a new data law – all governed by a set of ten ‘Principles of the 50’ to guide this vision of the future. Central to this vision is the expanded role of technology. Along with a scheme to attract 100 of the world’s best coders to the country every single day, the government has launched a Fourth Industrial Revolution Programme to accelerate adoption of 4IR tech across UAE industry, with the hope to increase industrial productivity by 30%. Embracing advanced technology is recognised as critical for growth and driving efficiency. This has huge implications for construction. The Projects of the 50 should not just facilitate change: they should inspire it too. Historically, construction has been slower than other sectors to adopt new technological tools but not only are they important in realising the full potential of the industry, they’re crucial in achieving UAE-specific goals. For example, the Dubai 2040 Urban Master Plan paints an exciting future but it’s also ambitious, centring on projects of unforeseen complexity and scale. It needs a construction sector behind it that’s working as smoothly and effectively as possible, and that relies on using the right tech.

November 2021 | MEConstructionNews.com

So, what does the ‘right tech’ look like in this context? It’s tools that can take all the complexity of a construction project and simplify it down – without losing accuracy – so processes are optimised, and confusion kept to a minimum. This can be achieved through single platform technology: one place that can connect every stakeholder on a project, from site operative through to client, and gives each oversight of the whole process. It’s a sharper, smarter way of working that increases productivity, as sought after by the Projects of the 50, and makes the impossible possible. Productivity gains come from several places. Centralising project data in this way drives informed decision making by allowing a construction team to track project performance in real time and see the whole picture at a glance. This means Owners and their General Contractors can make reliable, cost-effective and timely decisions, as well as identify any issues before they snowball into problems that impact the programme schedule. And it also helps construction firms manage their relationship with their supply chain and spot points where efficiency could be improved. However, it’s not just about centralising data, but streamlining communication too. Technology that eliminates information and communication silos also prevents the confusion and mistakes that come from disjointed conversations and stops these pushing a project beyond its deadline or budget. Knowledge sharing is essential to success – hence the government’s Champions 4.0 Network, as part of its 4IR plans, where local and international companies will come together to share best practice and advice. It’s through such collective discovery and learning that an industry, and a nation, develops. Construction therefore has two roles to play in furthering the Projects of the 50: physically building the infrastructure that will enable the UAE to economically, socially, and politically progress, but also establishing it as an international tech hub that attracts the best talent from around the world. Pushing and pursuing innovative digital practices, using tools that make work easier, and creating a truly collaborative environment are all ways construction can help the UAE. Mohamed Swidan is a senior director and head of MENA for Procore.

NAJI ATALLAH AUTODESK

The Bridge that Designs and Builds Itself

ethinking how businesses plan, design, and manufacture products is no small task. So, while many companies understand the importance of digital transformation, the process of transitioning an entire manufacturing process, and securing the necessary buy-in, is a colossal effort. One of the Middle East’s biggest engineering consultancies, Dar, is therefore working with Autodesk on “Smart Bridge,” a generative design approach coupled with an intelligent self-learning manufacturing system that can lay a foundation for the transition from legacy blueprint processes to an AI-driven construction process. The intelligent selflearning and generative design will lay the foundation for AI-driven construction. The original “Smart Bridge” project had two research streams: to generatively design and 3D-print a “Smart Bridge,” and to produce what was called Spark Design Assistant, an AI-driven algorithm that learns from Dar’s bridge design experience to create and optimize new bridge designs. The “Smart Bridge" was designed to use recyclable materials and the generative design

Rather than making prismatic shapes with simple geometries, you can reimagine the design, giving architects more freedom”

COMMENT

process enabled optimum saving of material, and additive manufacturing without the need for formwork, practically eliminating waste, resulting in a lower overall carbon footprint. The Dar “Smart Bridge” is the result of a collaborative research project which takes a first step towards realizing this thought experiment. The manufacturing process uses a robotic arm with a customised end-effector capable of printing fibre-reinforced polymers (FRPs), and various sensors for closed-loop monitoring of the print quality. Further sensors are embedded while the part is still being printed, which will allow the bridge to “learn” throughout its operating life. Dar wants to move on from old ways of doing things and to break out of the established constraints of construction. Robots have the potential to help. Rather than making prismatic shapes with simple geometries, you can reimagine the design, giving architects more freedom. “The “Smart Bridge” is a pedestrian bridge designed and 3D-printed as a proof of concept in two stages: first, as a 2-meter bridge to test and refine the process, then as a 5-meter bridge to augment the process to a larger span and monitor its behaviour over time. Sensors are used to earn the name “Smart Bridge”, by implementing closed-loop control first developed in advanced manufacturing. The machining processes of the past rely on giving G code to the robot or machine, which then follow those XYZ coordinates to machine or 3D print the requested part. While we are still sending those coordinates, we're also getting data back from the robot to inform the next layer of the toolpath, which has been relatively simple for the start of the project. By measuring temperatures and using that to tell the robot whether to speed up or slow down for the next layer, we’re at the first step in a more complex feedback system for printing. How will the bridge, which needs high safety parameters, perform over time? With more data capture, the health of the bridge will be monitored in real-time using a combination of embedded and external sensors that collect structural and environmental measurements. This data will feed into a “digital twin” of the bridge to provide valuable insights. Naji Atallah is head of Construction and Manufacturing at Autodesk.

KATHLEEN MCGRAIL WSP MIDDLE EAST

The Whole is Greater than the Sum of the Parts

he Capital Projects and Infrastructure sector is facing a challenging market landscape across the Middle East. Many public and private bodies who were driving the design, build and operation of assets have been affected by the implications of oil price volatility and the impact of the COVID-19 pandemic. As a consequence, many projects have been cancelled or placed on hold, while existing assets generate negligible returns for shareholders. As we approach the end of 2021, it is unlikely that strategic priorities will start to change, notably with those responsible for multiple assets conducting urgent portfolio reviews. However, in order to progress, there simply must be a change in approach towards how to generate satisfactory returns and realise true potential asset value across the whole portfolio. This is no easy challenge; historical trends and future forecasts indicate that investments have been made in infrastructure assets specifically because they are expected to deliver strategic value for many years. However, the promise of long-term value is of course simple to make when the assets are just plans on a drawing board. Ultimately, assets are only valuable if they continue to serve the ongoing needs of their users and shareholders. Therefore, any public or private body responsible for developing and managing these assets should be constantly striving to realise the assets’ greatest lifetime value.

In order to fund new capital projects and realise the true benefits from existing assets in the long term, it is time to utilise a more holistic approach and look not only to address the full asset lifecycle, but also to manage asset portfolios more effectively. Lifecycle Portfolio Management is a substantive enabler for encouraging desirable private sector participation in capital projects and infrastructure assets, particularly in the Middle East. By looking at everything in an overarching and integrated manner, organisations can reap significant benefits which would not be achieved by looking at projects and assets in isolation. The key is the continuous process of selecting and managing the optimum set of opportunities, projects and assets that deliver the maximum in business value or return on investment. A significant proportion of existing infrastructure in the Middle East is ageing whilst demand grows to meet the needs of population growth, the desire for better quality of life and higher standards of safety, and improved health and environmental protection. However, these objectives can only be achieved by adopting this transformational, integrated, holistic approach to managing capital projects and assets, both within an organisation’s portfolio and across their lifecycle. It is of course very difficult to design and build an asset of substantial scale and complexity that is durable, resilient to change and able to meet future needs sustainably over a long period of time. It’s even harder still to manage an asset’s associated ecosystem of interactive and supportive parts, often a fast-moving mix of constraints and demands, including: • Misalignment on the allocation of constrained resources • Fluctuations in availability of supply chain and logistics • Changes in stakeholders’ priorities • The introduction of new technologies • Shifts in demographics and social behaviours All of these challenges will have the potential to significantly impact the continued operation and associated value creation of each asset. Only by mitigating these challenges can we expect an enhancement to the delivery of services. Kathleen McGrail is Managing Director – Advisory Services at WSP Middle East. MEConstructionNews.com | November 2021

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Middle East tenders UAE GOVERNMENTAL

Mahawi Presidential Guard Command Camp (Phase 1) TERRITORY Al Forsan Camp, UAE CLIENT Presidential Guard Command BUDGET $50 million DESCRIPTION The project's scope of work involves the construction of 40 buildings as part of camp facility (Al Forsan Camp 1A to 32A) for Presidential Guard Command in Abu Dhabi. COMPLETION 12/30/23 MIXED-USE

City Tower 1 TERRITORY Sheikh Zayed Road, UAE CLIENT Galleria Investments BUDGET $410 million DESCRIPTION The project's scope of work involves the renovation of an 83-storey high-end commercial and residential tower located at Sheikh Zayed Road, Dubai. The building will replace the existing City Tower 1 on the same location. It also includes 4,650 square meters of office area, 705m2 retail area, parking facilities for 1,253 vehicles and associated facilities. COMPLETION 3/30/25

of work involves the construction of an LPG terminal located at Khor Khwair, Ras Al Khaimah. The project will receive bulk LPG by ship, offload, transfer, store and distribute by road tankers. The terminal will be designed for around 6000-8000 tonnes with one or more spheres installed within the plant area and room for future expansion. The project also includes fire fighting system, LPG pipeline, LPG storage area, LPG transfer pumps, Marine loading arm at the jetty, Road tanker loading gantry and associated facilities. COMPLETION 12/31/23

SAUDI ARABIA COMMERCIAL

Al Ula Tourism Development - Sharaan Resort Service Area & Urban Centres TERRITORY Al Ula in Yanbu, Saudi Arabia CLIENT Royal Commission for Al Ula BUDGET $50 million DESCRIPTION The project's scope of work involves the construction of 40 villas over a total gross floor area

Arabia. The scope includes water networks, sewage network and associated facilities. The project will be executed in Phases. COMPLETION 3/30/24 MIXED-USE

Al Qiddiya Entertainment City Golf & Residential Neighbourhood of 37,860 sqm, retail units, public amenities and associated facilities in the service area and urban centers phase 1 of Ula Tourism Development in the ancient city of Al Ula in Yanbu, Saudi Arabia. COMPLETION 9/30/24 INFRASTRUCTURE

Jeddah North Al Arous Infrastructure Work (Phase 1A) TERRITORY Jeddah North, Saudi Arabia CLIENT Public Investment Fund BUDGET $50 million DESCRIPTION The project's scope of work involves the construction of primary, secondary and tertiary roads for Riyadh Community Homes named Jeddah North in Jeddah, Saudi

TERRITORY Riyadh, Saudi Arabia CLIENT Qiddiya Investment Company BUDGET $620 million DESCRIPTION The project's scope of work consists of golf and residential neighbourhood located at Qiddiya, southwest of Riyadh, Saudi Arabia. The golf and residential neighbourhood sits near the centre of the property where panoramic vistas of the project are available from an array of residential and resort offerings that include a championship 18 hole golf course and club house facilities, a luxurious resort hotel and spa and equestrian facilities—all accessed from villas, townhomes and private retreats. A range of additional retail, residential, community services and commercial support facilities are distributed

OIL & GAS

Khor Khwair Liquefied Petroleum Gas (LPG) Terminal TERRITORY Ras Al Khaimah, UAE CLIENT Ras Al Khaimah Gas Commission BUDGET $300 million DESCRIPTION The project's scope MEConstructionNews.com | November 2021

TENDERS

throughout the property for ease of access and utility that support the modern lifestyle Qiddiya is designed to deliver. COMPLETION 1/30/25

OMAN OIL & GAS

Muscat Methanol Export Line TERRITORY Muscat, Oman CLIENT OQ SAOC BUDGET $100 million DESCRIPTION The project's scope of work involves the construction of a methanol export line and liquid jetty, three Marine Loading arms, 30” pipeline from methanol plant to Jetty, Firefighting lines, drain lines, Tie-ins and associated facilities in Muscat, Oman. COMPLETION 12/30/25 INDUSTRIAL

Barka Dates Processing Plant (Phase 1) TERRITORY Oman CLIENT Oman Ministry of Agriculture & Fisheries

BUDGET $120 million DESCRIPTION The project is being developed in two phases. The initial phase includes a processing capacity of 30,000 tonnes per annum, head office building, an administrative building, storage facilities and associated facilities. The final phase will include a total processing capacity of 80,000 tonnes per annum. COMPLETION 12/30/24 INFRASTRUCTURE

North Al Batinah Independent Water Plant TERRITORY North Al Batinah, Oman CLIENT Oman Power & Water Procurement Company BUDGET $320 million DESCRIPTION The project's scope of work involves the construction of a new water desalination plant of approximately 150,000 cubic meters per day (33 million imperial gallons per day) located at North Al Batinah in Oman. The project also includes water desalination plants, seawater intake system, pre-treatment system, post-treatment system, laying of pipelines, installation

of instrumentation and control system and a pumping station. COMPLETION 6/30/23

covers construction of access road from Al Rayya highway, parking facilities, security guardhouse, two power substations, FedEx warehouse (5,000m2) and its associated fit-out works, a common processing facility warehouse 2 (2,500 m2) and core & shell, warehouse 3 (2,500 m2), warehouse 4 (2,500 m2), water tanks, pumping station, airside security wall with associated works, an emergency gate, airside roads and yards. COMPLETION 12/30/24 INFRASTRUCTURE

BAHRAIN COMMERCIAL

Bahrain International Airport Cargo Village Package (Phase 1A) TERRITORY Bahrain International Airport, Bahrain CLIENT Bahrain Airport Company (BAC) BUDGET $50 million DESCRIPTION The project's scope of work involves the construction of phase 1A of the Cargo Express Village at Bahrain International Airport in Bahrain. The scope

Sheikh Salem Al Sabah Camp 132/11kV Main Transformer Station TERRITORY Sheikh Salem Al Sabah Camp, Bahrain CLIENT Kuwait Ministry of Electricity & Water BUDGET $60 million DESCRIPTION The project's scope of work involves the construction of a 132/11kV main transformer substation, transmission cables, extension and maintenance of ground cables, installation of generator and transformers and associated facilities at Sheikh Salem Al Sabah Camp in Kuwait. COMPLETION 12/30/23 INFRASTRUCTURE

Sheikh Jaber Al Ahmed Alsabah Highway Upgradation TERRITORY Manama, Bahrain CLIENT Bahrain Ministry of Municipalities Affairs & Urban Planning BUDGET $20 million DESCRIPTION The project's scope of work involves the widening and upgrading of Sheikh Jaber Al Ahmed Alsabah Highway to Motorway Standards (Maamer Culvert) in Manama, Bahrain. The scope also includes widening of the existing culvert, laying of 23 pipe culverts, site preparation work, filling and demolition work, November 2021 | MEConstructionNews.com

TENDERS

installation of six rectangular cells, infrastructure works and associated facilities. COMPLETION 12/30/23

of 512m, GSE Tunnel West of 676m, Aviation Fuel Distribution (Aviation Fuel and Hydrant System with Hydrants and fuel pipelines including Testing and Commissioning), External works covers pavement, eervice roads, traffic signs & markings, fencing, storm drainage sewer system, water, irrigation, fire fighting, AGL & AFL: Fixtures, Poles, Cans, cabling, CCR, Guidance Signs, Controls, Passenger Boarding Bridges, foundation, anchoring, earthing, PCA & GPU: Piping, Chillers, AHU, Ducting, Pits, Controls, Cabling, Boards, Pits, VDGS: Gantries & Brackets, VDGS, GOS, Cabling Control Pits , potable water, bluewater, sanitary systems, cabling, patching, routers, duct banks, Pits, controls. COMPLETION 12/30/23

QATAR INFRASTRUCTURE

Al Mearad & South West Muaither Roads & Infrastructure Work (Package 4) TERRITORY Al Rayyan, Qatar CLIENT Public Works Authority (ASHGHAL) BUDGET $50 million DESCRIPTION The project's scope of work involves the construction of roads and infrastructure works package 4, pavements, pedestrian walkways and associated facilities in Al Mearad and South-West of Muaither, Al Rayyan, Qatar. COMPLETION 3/30/24 INFRASTRUCTURE

South Al Meshaf Roads & Infrastructure Work (Package 10) TERRITORY Al Wakrah, Qatar CLIENT Public Works Authority (ASHGHAL) BUDGET $70 million DESCRIPTION The project's scope of work involves the construction of roads, pedestrian and cycle paths, a foul sewer network, treated sewage effluent network, surface and groundwater drainage networks, potable water network and associated facilities in the south of Meshaf, Al Wakrah, Qatar. COMPLETION 6/30/24 INFRASTRUCTURE

Facility E Power Evacuation & Integrated Water & Power Plant TERRITORY Ras Rakan, Qatar CLIENT Qatar General Electricity & Water Corporation (KAHRAMAA)

BUDGET $3.5 billion DESCRIPTION The project's scope of work involves the construction of an integrated water and power plant and installation of OHTL, substation located at Ras Abu Fontas which was earlier planned to be located at Ras Rakan, in the Madinat Ash Shamal region, Qatar. The scope covers construction of combined-cycle power blocks, water desalination plant, water transmission lines, storage facility, pipelines, transmission lines, 220kV cables, 132kV cables, 400kV cables, 400kV overhead line and two substations. COMPLETION 9/30/24

KUWAIT AVIATION

Kuwait International Airport Expansion Terminal 2 - New Passenger Terminal Airside Work TERRITORY Kuwait International Airport, Kuwait CLIENT Kuwait Ministry of Public Works BUDGET $145 million

DESCRIPTION The project's scope of work involves the airside works on the new passenger terminal 2 located at Kuwait International Airport City, Kuwait City, Kuwait. The scope includes passenger mover tunnel, multiple tunnels to link the new terminal with the airport, baggage transfer tunnel, vehicles moving tunnel, service tunnels, waste management facilities, retail storage and customs control facilities. The scope covers construction of Catering Building (69,000m2 Built-up-area), Consolidation Center (26,200m2 Built-up-area), Security Gates/Gate Houses, central plant (4,700m2 Built-up-area), electrical substation (630m2 Built-up-area), APM/ Baggage Tunnel of 510m, Cargo Tunnel of 80m, GSE Tunnel East

INFRASTRUCTURE

Boubyan 132/11kV Main Transformer Stations TERRITORY Boubyan, Kuwait CLIENT Kuwait Ministry of Electricity & Water BUDGET $60 million DESCRIPTION The project's scope of work involves the construction of two 132/11kV transformer stations, cables and associated facilities at boubyan in Kuwait. COMPLETION 12/30/23 EDUCATIONAL

Jaber Al Ahmad Private University (J4) TERRITORY Jaber Al Ahmed City, Kuwait CLIENT Public Authority for Housing Welfare (PAHW) BUDGET $70 million DESCRIPTION The project's scope of work involves the construction of a private university, a library, infrastructure work, parking facilities and associated facilities on a plot area of 88,977m2 in Jaber Al Ahmed City, Kuwait. COMPLETION 12/30/24

MEConstructionNews.com | November 2021

PROGRESS REPORT

Final update

Ain Dubai officially launched for operation

Landmark project on Bluewaters was inaugurated by HH Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, chairman of the Dubai Media Council

in Dubai, the world’s largest and tallest observation wheel, was officially opened on October 21, 2021, by HH Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Chairman of the Dubai Media Council.

The landmark project is the latest addition to Dubai Holding’s diverse entertainment portfolio and is located at the heart of the lifestyle island destination Bluewaters. Standing at more than 250 metres in height, the observation wheel contains 48 passenger cabins around its circumference, giving it the capacity to carry more than 1,750 visitors at once. One complete rotation of the wheel takes 38 minutes and visitors will be able to take in 360-degree views of Dubai, over the waters of the Arabian Gulf. Each of the cabins is larger than two double-decker buses placed side by side. Ain Dubai’s key components were assembled using two of the world’s largest cranes, and the structure used 11,200 tonnes of steel in its construction, 33% more than the amount used to build the Eiffel Tower. The landmark entertainment venue delivers extraordinary and customisable

November 2021 | MEConstructionNews.com

Landmark attraction Ain Dubai is the latest addition to Dubai Holding’s diverse entertainment portfolio and is at the heart of the lifestyle island destination of Bluewaters.

1,750

Number of passengers Ain Dubai can carry at once

one-of-a-kind experiences for every occasion. A marvel of engineering, over 10 key countries came together in the making of Ain Dubai, a statement from Dubai Holding added. During the opening ceremony, HH Sheikh Ahmed bin Mohammed was briefed on the key features of the new entertainment destination, including watching a short film documenting various phases of the construction of the observation wheel, which took nine million man-hours to build. At the heart of Ain Dubai is a hub and spindle assembly that weighs 1,805 tonnes, equivalent to the weight of four A380 aircraft. It is supported by four legs, each of which is 126m long. HH Sheikh Ahmed bin Mohammed was also briefed on the hall designated to receive VIPs, and the souvenirs area attached to Ain Dubai that serves tourists and visitors.

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A supplement of:

SMART CITIES REPORT

ME BIM Summit 2021

RECAPPING THE EVENTS OF THE DAY AS THE ME BIM SUMMIT RETURNED AS A LIVE EVENT

Reimagining Smart City Design

DR HARPREET SETH LOOKS AT HOW URBAN PLANNING AND COMMUNITY DESIGN HAS CHANGED POST-PANDEMIC

The Human Challenge

BIG PROJECT ME TALKS TO SANJAY TANWANI OF AECOM ABOUT PUTTING PEOPLE FIRST IN SMART CITIES In association with:

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WELCOME

Introduction A supplement of:

02 12

Editorial HEAD OF EDITORIAL & CONTENT Gavin Davids gavin.davids@cpitrademedia.com +971 4 375 5480 Advertising COMMERCIAL DIRECTOR Jude Slann jude.slann@cpitrademedia.com +971 4 375 5714 Design ART DIRECTOR Simon Cobon simon.cobon@cpitrademedia.com DESIGNER Percival Manalaysay percival.manalaysay@cpitrademedia.com Marketing & Events EVENTS & CONFERENCE PRODUCER Paul Godfrey paul.godfrey@cpitrademedia.com +971 4 375 5470 EVENTS EXECUTIVE Minara Salakhi minara.s@cpitrademedia.com +971 4 433 2856 SOCIAL MEDIA & MARKETING EXECUTIVE Gladys DSouza gladys.dsouza@cpitrademedia.com +971 4 375 5478

hile the concept of Smart Cities has been around for decades, the discussions around the topic have focused on the areas of monitoring, data collection and analysis, rather than homing in on the fundamental issue of human behaviour. If we are to truly develop Smart Cities, then we need to consider the people who live in them. All the technology in the world will be of little use if it cannot positively impact the individual behaviours that exacerbate urban challenges. This fundamental problem is one that Sanjay Tanwani of AECOM attempts to address in our main interview in this year’s report. With the pandemic having profoundly impacted the way we think about our cities, it is essential that we delve deeper into what makes a city more socially equitable, engaging and economically viable.

People First

Gavin Davids

HEAD OF EDITORIAL & CONTENT

gavin.davids@cpitrademedia.com @MECN_Gavin MEConstructionNews me-construction-news MEConstructionNews.com | Smart Cities Report 2021

PLANNING

In association with:

C Smart Cities Report 2021 2019 | MEConstructionNews.com

In association with:

PLANNING

The Human Challenge of

Cities Smart

BIG PROJECT ME SPEAKS TO SANJAY TANWANI OF AECOM ABOUT WHY IT IS CRUCIAL TO PUT PEOPLE-FIRST WHEN IT COMES TO PLANNING AND DEVELOPING SMART CITIES MEConstructionNews.com | Smart Cities Report 2021 2019

PLANNING

In association with:

In order to fully understand how this balance can be achieved, Big Project ME spoke to Sanjay Tanwani, design director and Cities program lead – Urbanism + Planning at AECOM: What defines a Smart City? Firstly, we need to start by demystifying Smart Cities. Smart Cities are primarily technology and data driven frameworks, that intend to enhance livability, boost economies, and help inform city authorities to make better decisions. Just like a smart watch, the intention of Smart Cities is to monitor, feedback and analyse in real-time the performance of a city’s various systems. As a smart watch would provide an assessment of your healthy habits, Smart Cities provide an assessment on healthy city indicators such as transportation, air quality, waste management and so on. The Smart City concept has been around for almost a decade now, with a series of pilots and application methods to ensure successful implementation. However, it is fair to say that the most successful initiatives created to enable Smart Cities have not necessarily been technology-oriented and instead, but are instead focused on people, the end-users. It is therefore my opinion that Smart Cities should not be overly digitalised, and technology should be strategically embedded into the personified experience

296 million Pop. 7B (2010)

6.3 billion Pop. 7.9B (2021)

7.5 billion

Pop. 8.2B (2026)

of the city, ensuring cities are safe, vibrant, and are providing the best services possible for residents. In addition, Smart Cities should aim to improve citizen engagement, promote commerce, deliver innovative solutions for urban challenges, and help address climate change. Why is it important to start with people rather than technology? So far, Smart City incentives have placed a definitive emphasis on monitoring, data collection and analysis. Almost exclusively focusing on supply-side. Examples include the automatic reduction of energy supply during nonpeak hours, the optimisation of traffic light systems to prioritise public transit and the notification to waste management teams when garbage collection is ready. Although these efforts are necessary and certainly an improvement from past conditions, they do little to address individual behaviours that exacerbate urban challenges. In particular: • How do we encourage individuals to reduce energy and water consumption at home? • How do we cajole commuters to use public transit rather than private cars? • How do we reduce the production of waste in the home? Without addressing these human-level issues, we are unlikely to solve the biggest urban challenges. Therefore, in the

People Fifth Industrial Revolution Responsive

Mechanically Centralised

2030

Third Industrial Revolution

1970

2016

Technologically Driven

Fourth Industrial Revolution

Smart Cities Report 2021 | MEConstructionNews.com

Source: https://www.bankmycell.com/blog/how-many-phones-are-in-the-world

n the wake of the pandemic, interest in the concepts of smart cities development is at an all-time high as governments and municipalities look to adopt and promote technologies that improve and drive efficiencies in the built environment and urban infrastructure. In the Middle East, Dubai stands out as a leading advocate for smart cities and its associated technologies, with the government driving forwards with several initiatives and programmes that will bring the city into a smart, sustainable and connected future. However, as cities look take full advantage of the benefits of digital technologies, it is essential that they have a people-first vision so as to ensure that they can simultaneously develop and adopt the latest technologies, while ensuring that their residents and citizens are involved in the conversation, and that their rights are protected.

Smartphone users in the world today1

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pursuit towards efficient Smart Cities, we must involve people in the conversations, through public engagement and public initiative pilots. This will support the development of people-centric solutions to human-level urban challenges.

Collect Data

What is AECOM doing to Robu st C further the region’s om Smart City ambitions? Analytics Data collection, analysis and Application feedback are key components Smart City of Smart Cities. This requires Feedback Loop rigorous testing and scenario building to understand what works well, and not so well. At AECOM, we offer an interactive performancebased modelling platform that provides a comprehensive framework Data Driven Build Scenario to build a balanced and effective Decisions urban plan that meet targets. AECOM also has a well-established digital ecosystem which, through an all-encompassing performance-based approach, supports the integration of technology into the fabric of society, analysis capabilities using 5G mobile the economy and the environment. The networks that unify an enormous ecosystem is highly flexible, with the number of complex sensors, and security ability to adapt to changing contexts mapping robots, it’s safe to say the and changing needs of citizens. EXPO site is an early example of what One of the major challenges future Smart Cities could look like. of delivering Smart Cities is the During the development stages An example for the future implementation of new technology of District 2020, AECOM focused on The EXPO 2020 Dubai site is an early example designing and delivering smart and into legacy infrastructure. To address of what future Smart this, AECOM’s approach populates connected communities that elevate Cities could look like. a digital twin with modelled data which is replaced with real-world data from IoT sensors as the city developments complete construction and infrastructure is phased out. With this feedback loop, the performance models can recalibrate, and identify gaps and operating adjustments to meet the set targets and goals. In addition, our process incorporates the concept of performance feedback and monitoring from a variety of intelligent sensors located in the urban environment. ement nag Ma

etwork tion N s ica un

the application of smart design well beyond current practice. An example of this is AECOM’s Road Diet Strategy, which aims to reduce private car lanes over time, in favour of pedestrianisation, and sustainable transport-oriented streets. This will evolve in line with the anticipated increase in usage of public transit and light mobility modes, reflecting on the human centricity aspect of delivering smart solutions. Parallel to this, in both the EXPO event site, and the District 2020 Legacy Masterplans, AECOM employed the Digital Twin strategy to test scenarios and provide advanced analytics to gain real-time insights about the proposed physical asset’s performance, operation or profitability. What new ideas and innovations are currently being developed to push the concept of Smart Cities forward? On the technology side I’m excited about many innovations coming through, such as Metaverse (where physical and virtual worlds combine), Ambient Intelligence (AmI) and Smart Environments (SmE). Imagine an autonomous adaptive built environment supported by several “invisible” small computing components, embedded in our immediate surrounding. This can be as simple as having

Data Se

cur ity

Dubai has been vocal about becoming a Smart City. What impact will an event like EXPO 2020 have on these aspirations? EXPO 2020, and in particular District 2020, will make waves for the Smart Cities concept and its implementation. With extensive data connections and MEConstructionNews.com | Smart Cities Report 2021

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neighbourhood streets automatically adapt for different uses (vehicular traffic or pedestrian shared surfaces) and weather conditions (retractable sunshades, rain protection etc.) to more immersive experience such as walking around AR overlayed high streets which blend the physical and virtual realms. On the governance side, the idea of citizen engagement and data privacy are key to the implementation of Smart Cities. With the advancement in smart grids and adoption of IoT, it is essential to establish how these incentives can be integrated into cities to enrich the urban quality of life. This includes the transition to a circular economy, promoting equitable growth, and addressing climate emergencies. A streamlined and smart approach, led by government programs which prioritize citizen involvement and ensure a reduction in privacy risks and security concerns. How has the pandemic shifted the thinking around the Smart Cities concept? And Can Smart Cities help us combat Climate Change? The pandemic has forced us to rethink the future of our cities. The change in living,

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working, and commuting patterns has impacted office footprints, transportation patterns, and consumption habits. There is an eagerness among policymakers, technologists, and urbanists alike to seize this moment in order to re-imagine a more resilient, inclusive and sustainable city. It is not surprising that the concept of smart cities is gaining greater attention now, given their perceived potential to solve complex urban problems. Amid these changing times, the concept of Climate-Smart needs to be popularised, introducing technology and innovation to reduce the impacts of climate change. It is essential to acknowledge that Smart Cities initiatives are vital to making the netzero transition a reality. With the UAE committing to net-zero by 2050, now is the time for us practitioners to take Climate-Smart action by partaking in a performance-based approach towards planning and designing our cities. AECOM, with its “Future we Want” initiative at COP26, celebrates research and innovation that could support the global transition towards becoming a climate-resilient, carbon emission-free future and improve our understanding of the available

innovative and smart solutions to be incorporated as part of our practice.

Use of clean technology can lead to:

$430 million reduced energy costs

16%

reduced carbon emissions by 2025

What does AECOM have in the pipeline when it comes to the development of Smart Cities? Over the past years, AECOM’s Urbanism + Planning team has delivered projects ranging from national strategic plans to detailed district and neighbourhood level masterplans. Building on AECOM’s Sustainable Legacies strategy and AECOM’s Digital Ecosystem, our Urbanism + Planning team actively incorporates sustainable and innovative principles in all projects, irrespective of size or scale. When approaching a project, our team delves deeper into the elements of a city that encourage a more socially equitable, engaging, economically viable, and environmentally conscious context. With this approach, we believe that Smart Cities initiatives should give precedence to sustainability and include citizens at the core. As we explore that lens, we are committed to delivering outcomes that are inherently focused on designing and planning vibrant and equitable places that offer a high quality of life for all.

Energy efficient Net-positive buildings Retractable sun shades Performance efficient fixture Small computing components

Real time insights

Road diet strategy

Energy generating pavements

Smart Cities Report 2021 | MEConstructionNews.com

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Digital Cities

Building Back Better

MIDDLE EAST

Spyros Salpeas, head of Professional Services, Indirect Middle East & Africa, Orange Business Services, the pandemic has accelerated the third wave of digital cities

he Middle East is now home to numerous smart city developments across the region with a focus on the GCC but also extending to Egypt. The Institute for Management Development’s (IMD) 2020 Smart City Index recently ranked Abu Dhabi and Dubai as the smartest cities in the region in the use of technology to improve the quality of life for residents. Projects, like the $500 billion Neom smart city in the Kingdom of Saudi Arabia and Kuwait’s $4 billion to eco-friendly Saad Al-Abdullah City, are hugely complex undertakings. Today, the ‘smart city’ is an intelligent and sustainable city that

Smart Cities Report 2021 | MEConstructionNews.com

Connected cities The top learning from the pandemic was the crucial importance of digital, converging digital and physical infrastructure, powered by cloud and IoT.

$4bn Value of Kuwait’s Saad AlAbdullah City

is connected, agile and innovative, making extensive use of IT and digital technology to embrace the challenge of improving the quality of life of citizens and boosting the economic attractiveness and tourism potential for local authorities and companies. As we cautiously exit the pandemic, cities are more connected than ever, and technology plays a central role in our everyday lives. City leaders report the top learning from the pandemic was the crucial importance of digital, converging digital and physical infrastructure, powered by cloud and IoT. The pandemic has accelerated digital transformation generally and cities are more important as the world emerges

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from disruptions - digital cities can be the resilient hubs people now need. It’s not all about the technology. Digital cities should be designed around people and built on a foundation of trust. Every digital city is a unique network of integrated services that grows and develops organically over time as new use cases emerge and then evolve, supported by new bursts of innovation. The pandemic has triggered a new burst of innovation and led to the third wave in the evolution of digital cities. BUILDING BETTER DIGITAL CITIES Digital is now ubiquitous and it’s all about creating new data in cities. The immediate impact of Covid-19 on smart cities has been digital acceleration transforming digital cities again with new use cases and ushering in a new wave of city evolution, based on vast amounts of data and growing intelligence. Initially, smart city projects focused on digital infrastructure, such as super-fast broadband. The second wave of digital cities focused mainly on solutions and architectures. We believe we are now entering the third wave of digital cities, built on the existing city data platform and accelerating towards increasing intelligence through innovation. This acceleration to intelligence is the defining characteristic of the third wave of digital cities. In this third wave of evolution, Big Data and predictive analytics are driving digital city projects and generating vast volumes of data. The third wave adds the Cloud and layers of AI on top of the existing data platform to create a more responsive and cognitive city. This new wave also opens up the options to add new use cases and solutions delivered quickly ‘as a service’ via the Cloud (always on, always available) – transforming the business and finance models of digital cities and accelerating innovation even faster. This creates new innovation and business opportunities for the benefit of the local population. Digital acceleration is now the imperative for cities, individuals and companies and this has is resulting in enormous amounts of new data. Intelligent cities are not engines

The third-wave Salpeas says that the third wave of digital cities is now upon us, built on existing city data platforms and increased intelligence through innovation.

$500

Value of the Neom smart city being built in KSA

2025

The first phase of the Neom smart city project is scheduled for completion by 2025

of innovation and ecosystems that leverage collective intelligence. Innovation must be a continuous process benefitting everyone in the city and so innovation doesn’t stop here in the third wave. Intelligent cities must look ahead to the next major challenge, after Covid-19. THE NEXT WAVE - SUSTAINABILITY Climate change is driving the global move to de-carbonisation (with the target of carbon neutral) and means management and compliance is increasingly important and intelligent cities must respond – ‘greening’ cities comes at a cost and digital technologies can offer solutions. It’s clearly a challenge but also an opportunity to achieve a new level of sustainability based on intelligent cities. Decarbonisation is becoming a driver for new use cases built on top of the data platform in the city to lower emissions and reduce energy consumption. It will result in a new level of control over every aspect and impact of the city which will be able to make intelligent decisions on emissions and energy, supported by enterprise commitments to decarbonisation as business adopts ESG (Environment, Social, Governance) targets and also innovates and develops. Innovation is essential and it’s all driven by data.

Big Data and predictive analytics are driving digital city projects and generating vast volumes of data. The third wave adds the Cloud and layers of AI on top of the existing data platform to create a more responsive and cognitive city”

MEConstructionNews.com | Smart Cities Report 2021

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Urban Planning

Reimagining Smart Cities’ Design Post the Pandemic MIDDLE EAST

Dr Harpreet Seth, Head of Architecture Studies, HeriotWatt University Dubai, examines how technologies and applications developed to fight the pandemic are now being used to shape the future Smart Cities Report 2021 | MEConstructionNews.com

ince the advent of the pandemic, governments at various levels across the world have been implementing smart city technologies to help combat its impact – using it to track the spread of infections and to support the execution of medical strategies. In addition to demonstrating the value of smart technologies, these new applications are helping shape the future of smart cities. The

pandemic prompted governments and authorities to repurpose existing digital infrastructure in many innovative ways that were difficult to imagine previously. Urban planners and the design community will now need to depend on technology more than ever in ways we never visualised prior to the pandemic. As we reimagine our built environment, we need to find creative ways to reduce the many points of contact between people and surfaces.

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Depending on technology Urban planners and the design community will need to depend on technology more than ever, in ways never previously visualised prior to the pandemic.

Some of the key and immediate changes to the concept of smart cities post-pandemic requires accelerating digital transformation and envisioning new design approaches. These will not only help us adapt to the new normal but also create new modes of social interactions essential for our wellbeing and make our cities more resilient: • Embracing automation. Even before the pandemic began, we had already started to see and experience automation in the form of touchless faucets and sensoroperated doors, especially in hotels, malls and airports. Now that we have been facing a pandemic for over a year, it is obvious that everybody wants to avoid touching anything unnecessarily. In terms of design upgrades, it is office buildings and even residential properties that should prioritise replacing doorknobs, light switches, thermostats, and other touch operated objects with motion sensors and voice controls, in order to reduce avoidable human contact. • Feeling safe with cleanliness and hygiene. Without a doubt, cleanliness and hygiene is now an integral part of feeling safe. As we re-evaluate our built environment – especially public places – architects and designers are adopting new design considerations in the form of anti-bacterial surfaces and anti-microbial fabrics that will eventually become more common in new projects such as hotels and spas, restaurants, cinemas, malls, and museums. Educating people and encouraging a shift in their attitude will remain vital to ensuring their safety. • Striking the balance between live-work-play. With a lot of individuals still working from home and some companies allowing their employees indefinite remote working, people’s leisure and recreation needs will need to be reimagined as well. The design community are already seeing a rise in the demand for repurposed living spaces. From reducing tactile contact (sensor-

As we reevaluate our built environment – especially public places – architects and designers are adopting new design considerations in the form of antibacterial surfaces and anti-microbial fabrics that will eventually become more common in new projects such as hotels and spas, restaurants, cinemas, malls, and museums” based controls) to integrating fitness (home gyms) and work (digitally enabled workstations) into their homes, none of these are going to be possible without the aid of smart technologies. Live-work-play is the new design typology that has become more prominent over the last one year. Hence, the need for balance and taking a pause between each facet of live-work-play will continue to grow into the near future.

SHAPING THE FUTURE OF OUR CITIES The smart city discourse has conventionally revolved around the subject of sustainability. While it is important to remain focused on our original objective of creating smart cities that are efficient and sustainable, adopting a holistic approach to digital transformation and resilience planning is also crucial. Although it is positive to see the roll-out of vaccines across the world, reclaiming a world as it was prior to the pandemic could be a few years away. It is hence important to make urban resilience a top priority. Architects have a great role to play in influencing changes to housing, mobility, work, and recreation, so that we are more prepared in thwarting or managing future crises. Smart city technologies can help us make our cities more habitable, resilient, and sustainable – and this is exactly what we need to create a safe and prosperous future that is responsive, not reactive. The pandemic is also a lesson on why cities need to partner and collaborate with national governments to follow a consistent set of policies and synchronised actions. Though most cities can lean on their national governments for help during major crises, that is not always the case, even in developed countries. Cities must become more independent and innovative, enrolling all stakeholders in their crisis response and recovery planning – and that’s where smart city technologies will play the role of a critical enabler. While some governments might relegate smart city priorities to the backburner as short-term economic recovery plans take precedence, few governments such as the UAE have seen the pandemic as an opportunity to boost their digital investments, especially with respect to smart city components. By incorporating pandemic preparedness and reviving the economic health of their cities, such governments are definitely going to reap the plural benefits of investing early in smart city technologies.

MEConstructionNews.com | Smart Cities Report 2021

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DESIGN

Sustainability

Getting Urbanisation Right: The Role of Sustainability Advisory in Smart Cities

MIDDLE EAST

Kumar Subramania, Senior VP at MAST Consulting, outlines how sustainability principles need to be at the core of smart city design and planning

ccording to figures shared at the end of 2020, by the World Economic Forum, 56.2% of the global population currently lives in cities. Significantly, the report confirmed that this rise in urban population is accelerating in the developing world. A mere 20% of Africans and Asians were city dwellers in 1950; but the latest figures for the two continents are 43% and 51%, respectively. South America now exceeds Europe in its total urban population, having reached a figure of more than 80%. This rapid urbanisation – which is set to continue

Smart Cities Report 2021 | MEConstructionNews.com

in the coming decades - is great news from a development and standard of living perspective. Historically, cities are a wonderful means to giving people access to a better life, more amenities, and social services such as education and healthcare. But this does come at a cost. The downside of urbanisation can easily manifest itself as economic inequality, pollution, congestion, and stress on the systems delivering essential services. For most of the last two decades, the consensus strategy to amplifying the benefits of urbanisation, and limiting the negatives, can be summed up in a two-word catchphrase: Smart Cities.

Finding balance Smart Cities can help amplify the benefits of urbanisation, and limit the negative aspects.

2050

Target for achieving net zero across all industries

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But implementing such optimised and tech-enabled cities successfully, will require a holistic approach, based on deep-dive analysis and planning. In essence, smart cities are built on deploying emerging technologies, empowered with the use of real-time data; to optimise the delivery of services, enhance city planning, make the management of assets seamless, and create system and process transparency. From the technology standpoint, this involves leveraging IoT, Big Data, AI, Digital Twins, Machine Learning and more; to create agile systems that maximise outcomes sustainably, through the system-wide integration and alignment of these innovations. Our cities currently occupy about 3% of the planet’s landmass, while accounting for almost 80% of energy usage, and 75% of our carbon footprint and global waste. And as the recent global pandemic demonstrated, these urban communities need to be far more resilient than they are at present, as well. So, implementing a tech-enabled approach to managing our cities certainly makes sense. But the challenges are multi-faceted. A truly ‘smart’ city needs to address concerns around sustainability, agile infrastructure, and great service delivery; as well as the entire spectrum of environmental, social, and governance (ESG) issues. In addition, with a rising consensus on achieving net zero

With an outcome like Urban Sustainability, the real challenge will be constant customisation – to the eco-system of the particular city, the stakeholders involved, the desired outcomes, and the regulatory environment”

Enabling the evolution Sustainability Advisors will be key enablers of cities customising their approach to sustainable smart cities.

industry, across all sectors, by 2050; replicating this outcome in our cities will be necessary as well. In other words, a full-spectrum approach, empowered by data-led transparency and insights, will be the default model for our cities – from infrastructure to management. But making the transition to this future will be as much about strategy, as selecting the right combination of technologies. A lot of different aspects will need to be optimised, to make this historical leap to a more sustainable world of the future. Green buildings, sustainable energy generation, clean transport alternatives, product and asset lifecycle assessments, reskilling workforces, and much more – the list is virtually endless. So how can such complexity be addressed in a way that cities around the globe can customise to their needs, and replicate? What should be the basis of our approach, to enabling this

Cities currently occupy about 3% of the planet’s landmass

75%

Cities account for 75% of our carbon footprint and global waste

evolution? Sustainability Advisory services will be key enablers of this revolution – especially in providing an overview under which a diverse set of innovations, skillsets, and areas of expertise, can be harnessed; to create the synergy needed. The role of a consultancy - in the smart city context - begins with creating ESG policies and strategies, which align the complex-web of stakeholders involved under a single overarching umbrella. Next, depending on where each stakeholder group is, in their ESG journey; software platforms that are optimal for the purpose will need to be implemented, for effective monitoring and reporting. Fortunately, the benefits of optimal tech-enabled ESG management have become universally apparent – from enhancing revenue for the businesses involved, and increasing returns on investment, to driving sustainability across all operations and systems. A sustainability consultancy’s approach, to achieve these outcomes optimally, can be broadly divided into three elements. The first is Advisory – which delivers expert advice based on a deep understanding of current regulatory requirements; anticipates future developments; and aligns these requirements with strategies, policies, and processes. The second element concerns Implementation – which puts the outcomes of the advisory aspect into efficient practice, within an appropriate governance and compliance framework. And the final piece of the puzzle is Monitoring - which enables continual refinement and course corrections, keeping the sustainability prerogative on track perpetually, linking outcomes and performance to UN SDG’s, GRI or other relevant frameworks. Ultimately, even the most powerful and capable technology is only a tool; and each ecosystem that adopts it presents a new use-case, for which it needs to be optimised. With an outcome like Urban Sustainability, the real challenge will be constant customisation – to the eco-system of the particular city, the stakeholders involved, the desired outcomes, and the regulatory environment. Effective advisory will be the compass, to help all stakeholders navigate the transition to truly ‘Smart’ cities.

MEConstructionNews.com | Smart Cities Report 2021

EVENT REVIEW

Smart Cities Report 2021 | MEConstructionNews.com

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EVENT REVIEW

ME BIM Summit

ME BIM Summit Recap

Big Project ME’s reporter on the ground, Mark Dowdall, recaps the events at the ME BIM Summit, which returned as a live event on November 1, 2021

eld at the Westin Dubai Mina Seyahi and organised by CPI Trade Media and Big Project ME, the sixth edition of the ME BIM Summit saw a return to live events, on November 1st, as 180 of the GCC’s top professionals came together to discuss the future of BIM technology in the region. The event began with opening statements by Gavin Davids, editor of Big Project ME, and event host, Paul Godfrey, before Session One kickstarted the day’s conversation with a joint keynote presentation from Wissam Hijazi, director of virtual design and construction at EllisDon, Middle East and Senthil Arjunan, Vice-president of Digital Transformation at Aldar. The key theme of the presentation was the value in using digital tools to ensure projects are delivered on time, budget and quality. “There are a lot of things we can do around BIM and VDC, which is probably

the emphasis of this presentation,” Arjunan pointed out afterwards. “Things like big data has picked up in the last couple of years. We have a closer eye on blockchain, for example, in terms of that becoming a widely adopted technology and I think that’s more relevant when all the stakeholders get involved.” He added: “I think every technology impact comes with change management, and also the culture around it. Obviously, the technology gets mature based on where the industry is moving and then gradually this becomes more baseline and standard within organisations. Having that effective change management and managing that culture of change within those organizations; that is the key to success. The tech part comes later. It’s people, culture and more upskilling that is fundamental to the larger transformation.” Following the keynote, the first panel discussion titled ‘Digital Twins and the Disruption of the Real Estate and

Construction Industry’ began. The session was moderated by Prakash Senghani, director and head of digital delivery at JLL. He was joined by Juan Tena Flores, regional digital design manager at KEO International Design Consultants, Muhammad Jabakhanji, director of operations at Concerted Solutions, Nizar Jegham, director of digital advisory services ME at WSP, Kaarin Kalavus-Collins, associate director at Turner and Townsend, and Wajdi Mereb, BIM digital engineering expert. During this 45-minute discussion, the panellists explored how digital twins have been impacted by global forces, particularly the pandemic, and focused on how the industry is moving towards a more sustainable living. “The biggest trends at the moment are all around sustainability and how we are going to be able to build more sustainably, operate more sustainably and look at extending the life of our existing assets”

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EVENT REVIEW

commented Senghani, following the session. “This is going to be a couple of things. Some of it is behavioural, so changing the way that we use buildings; trying to use them for multiple uses rather than just having single use buildings and then the other things are going to be more technological driven so putting more sensors in and introducing more technology to help run and optimise our buildings more efficiently and effectively.” He added: “As we become more and more data rich, we are going to become a target for cybersecurity bad actors and so we need to get an understanding of how we can secure that data but still make it available to people and allow them to make decisions.” Following the first panel, James Frampton, regional leader at SoftwareONE |MTWO Construction Cloud, took to the stage and further highlighted the sustainability theme, focusing on how stakeholders in the supply chain can start reducing their carbon emissions and footprint, with the construction industry currently one of the highest contributors worldwide. “One of the biggest things to consider

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The biggest trends at the moment are all around sustainability and how we are going to be able to build more sustainably, operate more sustainably and look at extending the life of our existing assets” is reducing the amount of rework that a project has to do,” he said. “When we do rework, yes, we waste time, and it costs more but we also waste material when we are getting rid of old stuff and doing stuff again. If we can reduce the level of rework in a project, then that’s one of the biggest ways that we can also make that project more sustainable. “A lot of companies are coming to us

Smart Cities Report 2021 | MEConstructionNews.com

as part of their digital transformation journey; and in line with that, the trend that we are seeing now, is how can we leverage digital transformation to more sustainable outcomes.” Session Two was opened by Mohammed Abdelrahman, associate BIM director at The Red Sea Development Company. His keynote presentation on ‘BIM and Data Management in Digital Construction’ shared the digital aspects of the design and construction process, and its impact on the creation of a digital twin. “To control a giga-scale project, it’s really important to build the infrastructure properly from the beginning. We have to have a proper standardisation of how the delivery [of data] should come to you because this is the base that will innovate anything that comes later on. “The Saudi vision is for 2030 and technology is changing every day, but the basics of how data should be standardised and how quality should be received will remain fundamental all the time.” He added: “If you can just translate the technology into something physical,

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understood by construction managers, that will make a huge change. You will get the support; you will get the innovation and you will get what you need to do things quicker and in higher quality. “The world is moving towards drones, 360 images, photogrammetry, all this kind of stuff that will lead later on to more artificial intelligence, more robotics. All of this is coming in the future we just need to have the basics properly established now.” The second panel discussion of the day, titled “Expanding the scope of BIM through Digitalization of Construction” was moderated by Dr. Anas Bataw, director of Centre of Excellence in Smart Construction at Heriot-Watt University Dubai. Joining him on stage were Nayer Girgis, digital team leader at ASGC, David Glennon, digital project delivery director at The Red Sea Development Company, Sthavya Kannamparambil, technical manager at The Red Sea Development Company, Nicky Dobreanu, CIOB and Paul Wallett, regional director at Trimble Solutions. The key points in this session centred

on the next stages after BIM and the lessons that have been learned from the BIM journey so far. The panel agreed that BIM has helped enormously when it comes to digitalisation and understanding how to approach it; but to move forward

The world is moving towards drones, 360 images, photogrammetry, all this kind of stuff that will lead later on to more artificial intelligence, more robotics. All of this is coming in the future we just need to have the basics properly established now”

there needs to be better collaboration with other initiatives that are out there. “This is important; not only within a team or between different teams and different departments,” said Dr. Bataw after the session. “But also, collaboration with the different organisations involved in a project or in the industry. And most importantly, there needs to be more collaboration between our industry and other industries so we can learn from them or even bring them in to be a part of our journey. “My BIM journey started more than 15 years in the UK. When I came to this region first BIM was looked at in a different way. Now, however we are seeing BIM being approached in the right way but more importantly we are already looking at the future. We are looking at how we can move on from BIM but also look how we can integrate different solutions initiatives and that’s exactly what interested me in today’s session.” After the coffee break, Session Three began with a keynote presentation by Noora Nabil Bin Haider, GIS Engineer at Dubai Municipality, which showcased how BIM’s

MEConstructionNews.com | Smart Cities Report 2021

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E-Submission Platform works and streamlines the approvals process for Dubai Municipality. Dayesh Jaiswal, director of Techture, was next up on stage as he explored how to increase the value of BIM for the client. “There is still a lot of hidden value which can be explored if we integrate BIM with other technologies like virtual reality and also if we do a bit of customisation. We need to increase the value of conventional deliverables like 4d simulations and quantity estimations, make them more visible and more practical for the user,” he said. “The challenge is to focus on bringing value to the client and not just on satisfying consultant requirements. When we work with someone, we first try to understand however the design processes better through virtual reality, how can we do quantity estimations through quantity automated quantity takeoffs and how can we make project management more inclusive through the use of dashboards.” This led to the final panel discussion, titled ‘The Democratisation of Data and its Impact on the Future of Construction’, which was moderated by Elena Salun, head of CAD and BIM at Cracknell. She was joined by Suhail Arfath, director of Digital Transformation at Hloov, Louise Collins, head of Engineering and Energy at JLL, Salah Abdulatif Al Dilmi, section manager of Rail Infrastructure Maintenance at Rail Agency, Roads and Transport Authority, Dr Ali Ismail, BIM Expert at Dubai Municipality and Allison Wicks, founder and managing partner at Qualitaz. The main topics of interest were the behaviour of the industry in relation to the data, the need for an organisation to engage all members of their staff with the data, to be able to share it more easily and to get the most value from it. “If we have that I think that is what is going to make the exchange of data more transparent,” said Salun. “Internally, within the organisations this needs to happen between the different departments, and we need to have enabling tools for people, who may not be as technical savvy, to extract the data from a BIM model. She concluded: “We are on the right path and there is no turning away from it, whether we like it or not. This is not even the future; this is the present. What we must do is try make the transition as painless as possible and we can only do that if we all work together towards the same goal.” Smart Cities Report 2021 | MEConstructionNews.com

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TECHNOLOGY

Android Building

The Android Approach MIDDLE EAST

Sanjeevv Bhatia, chairman of SB Group and CEO of Netix Global, says that the ‘Android Building’ approach complements the Middle East’s Smart City revolution

ccording to research, the KSA smart cities market, fuelled by pandemic-induced digitisation, is expected to grow to $14.75 billion by 2027, at a CAGR of 19.6%. In the UAE, smart city initiatives already have a head start, with Dubai and Abu Dhabi featuring in the top 50 global smart cities. Leading Middle Eastern economies have earmarked competitive budgets

for investments into state-of-theart systems and technologies that can potentially start a regionwide smart city revolution. Relatively older buildings and infrastructure continue to be riddled with legacy, vendor-locked systems which are inflexible and therefore hard to optimise. Operators and decision makers cannot consider replacing the entire hardware due to financial implications. Conversely, in an open protocol model, irrespective of systems being at different stages of digitalisation, there is a massive scope for optimisation and efficiency enhancements. This boils down to the IoT-led integration of multi-vendor systems and the breaking down of silos. Integration also enables city-wide capture of data generated by systems such as lighting, electricity grids, and water networks. The collated data is subjected to AI analytics to derive actionable insights — all in real-time, and operable by a single-window operator in a centralised command centre. But now, with the emergence of the ‘Android Approach’ to buildings, the complexity of a smart city initiative can be simplified to a

Smart Cities Report 2021 | MEConstructionNews.com

mere plug-and-play undertaking. This approach to smart city operations can be linked to Android OS, which is open-source, highly programmable, easily operable, and has no vendor lock-ins. In the same vein, open protocol controllers are retrofitted to existing BMS/ BAS and legacy systems in cities. So, without cost-intensive hardware replacement, existing systems in cities can be made more efficient in terms of energy usage, savings, and performance. Stakeholders also have the freedom to work with any service provider thereafter, and replace them if they fail to meet expectations. Also, the “Androidification” allows them to seamlessly add new systems/devices/services, as and when innovations emerge. The ‘Android Approach’ can help smart city stakeholders automate functions such as lighting, surveillance, utilities maintenance, etc. So, as opposed to a rigid smart city framework, the ‘Android Approach’-powered smart city is more agile and resilient to disruptions. This can be advantageous in light of changes like, say, the ever-evolving

regulations surrounding carbon footprint and sustainability goals. Regional initiatives like the UAE Energy Roadmap and the Green Riyadh Program are precursors of greater initiatives to come. The agility also means that operators are well-positioned to offer more value-centric services to residents while achieving instant ROI due to savings and positive civic outcomes. The ‘Android Approach’ is also highly scalable, and with large-scale adoption, the impact can be macroeconomic. Smart cities offer the perfect avenue for greater adoption of automation and associated technologies. But the adoption must be uniform across both Greenfield and Brownfield developments, and it is here that the ‘Android Approach’ to smart cities makes its most clinching case. Alongside, there is a need for smart city solutions providers to form strategic partnerships and provide end-to-end support, from planning to delivery to execution, across all aspects like utilities, communications, security, mobility, governance, healthcare, smart living, logistics, and sustainability.

Big Project ME November 2021

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