Big Project ME November 2022

Page 1

Licensed by Dubai Development Authority THE BUSINESS OF CONSTRUCTION November 2022 MEConstructionNews.com 198 Transforming History BIG PROJECT ME PROFILES DIRIYAH, THE HISTORICAL, CULTURAL AND LIFESTYLE MEGAPROJECT, THAT WILL TRANSFORM THE KINGDOM’S CAPITAL ONCE COMPLETED
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08 The Briefing

Eduardo Montero discusses intelligent mobility solutions and Abbas Sajwani shares his plans to disrupt luxury real estate

The Big Picture

20 In Profile

Ian McGauley

Project Profile

Market Report

Knight Frank finds that the total value of KSA real estate and infrastructure projects has skyrocketed

Analysis

Thomas Gateff of M2L Concepts, looks at how Saudi Arabia’s tourism and entertainment projects will shape the MENA region

1 MEConstructionNews.com | November 2022 CONTENTS November
2022
12
A wrap-up of the biggest international construction news stories for the month 14
16
34 Industry Insights Paul Sweeney of
Consulting
38 Comments Industry experts share their thoughts on the key issues facing the construction industry 40 Final
RCU unveils the designs for the first AlUla neighbourhood ANALYSIS FEATURES INSIGHT 08 14 16 20 28 34
Big Project ME speaks to Ian McGauley, of WSP about how the consultancy is working to engage and develop its young Saudi talent 28
Diriyah Big Project ME profiles Diriyah , the historical, cultural and lifestyle megaproject that will reshape Riyadh
Compass Project
, shares his thoughts on delivering KSA’s giga-projects
Update

Introduction

Kingdom Calling

we still have visitors tuning in to watch the recorded panel discussions and presentations.

Given all of this, it’s an absolute nobrainer to capitalise on this momentum and bring the Construction Intel Summit – KSA to its spiritual home – Saudi Arabia. Not only will it mark the launch our first summit outside of the UAE, but it will also offer attendees an unparalleled range of insights, discussions, analysis across a whole raft of crucial issues and topics.

Following the recent announcement from the UAE that most COVID restrictions are being lifted, I think it’s safe to say that we are now in the ‘post-pandemic’ era. This has led to a lot of positive sentiment in the market, which has been increasingly reflected in the summits and conferences that we’ve been putting together over the last few months.

Not only have we seen attendance figures rival – or in some cases surpass – prepandemic numbers, but we’ve also seen a surge in engagement that has lasted for months following an event. This bodes well for the future of the industry, as these summits and conferences are crucial meeting points for ideas and people, and we hope to see more of them flourish over the coming year, especially with the UAE hosting COP 28 next November.

One summit that Big Project ME launched during the pandemic was the Construction Intel Summit – KSA, which came to life as a webinar. Given it was at the height of the pandemic, we had minimal expectations for it, but were pleasantly surprised to see it generate record engagement figures for us. In fact, to this day, nearly two years on,

If you’re in Riyadh on November 23, 2022, I encourage you to come down to the Al Faisaliah Hotel and join us for a day of debate that is sure to reshape your understanding of what is happening in the Kingdom. See you there!

On another note, I need to mention that the Big Project ME Awards have been shaping up pretty impressively, with approximately 140 nominations already submitted - a clear reflection of the positive sentiment in the market, if there ever was one!

Nominations will be closing on November 15, so you’ve still got a little bit of time to get them in, and I’m looking forward to seeing a lot of you at the awards themselves on December 15, 2022!

2 November 2022 | MEConstructionNews.com WELCOME
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Transforming History

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ON THE COVER

Big Project ME profiles the immense Diriyah project in Riyadh during a tour of the mega-project with Diriyah Gate Development Authority

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Licensed by Dubai Development Authority
November 2022 MEConstructionNews.com 198
THE BUSINESS OF CONSTRUCTION
4 November 2022 | MEConstructionNews.com
PROJECT ME PROFILES DIRIYAH, THE HISTORICAL, CULTURAL AND LIFESTYLE MEGAPROJECT, THAT WILL TRANSFORM THE KINGDOM’S CAPITAL ONCE COMPLETED
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23 NOV 2022 | RIYADH / KSA Register now for free!
Understanding the complexities of making Vision 2030 a reality

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Mobility

Mobilising the Middle East

MIDDLE EAST

mobility firms are working closer than ever with architects and engineers to design state-of-the-art elevator and escalator solutions that make moving around cities, public spaces and buildings seamless and more sustainable.

Having established a presence in the Middle East region since 1982, TK Elevator (formerly known as thyssenkrupp Elevator) has leveraged decades of engineering expertise and user-focused innovation to get people where they need to go.

dynamic building and construction markets in the world, with iconic skyscrapers and unique projects constantly in progress – and we are proud to play a key role in many of them today, as we have been over the years. Our signature TWIN system has proven to be the mobility solution of choice here due to its unrivalled efficiency and space-saving advantages for tall buildings with heavy passenger traffic.

Ideal solution

With there being many older, first-generation tall buildings in the Middle East, modern mobility solutions would be an ideal solution for them.

Innovation DNA

As the world continues to evolve, the way people move in modern metropolises is transforming radically along with it. With high-rises reaching greater heights than ever and increasingly complex infrastructures becoming the foundation of urban lives,

With the GCC – and the UAE in particular – rapidly moving forward with its sustainable and smart city ambitions, intelligent mobility solutions will be crucial to achieving them. Therefore, Big Project ME recently sat down with TK Elevator’s Middle East CEO, Eduardo Montero, to gain his insights on the company’s role in shaping the future of mobility within the region.

Could you tell us about some of TK Elevator’s projects in the Middle East?

The Middle East is one of the most

Featuring an industry-first, unique design with two elevator cars operating independently in the same shaft, it has received many accolades as a technological breakthrough in the industry, fortified further by a TÜV-certified four-stage safety system that is a testament to our German engineering heritage.

Currently, TWIN serves a variety of key buildings around the Middle East, such as the PIF Tower in Riyadh, NBK Headquarters in Kuwait City, Future Generation Reserve Fund Project in Manama, State Audit Bureau Towers in Doha, and Latifa Tower in Dubai – just to name a few.

TK Elevator will continue to innovate and push its technical expertise through all its products, as it is part of the company's DNA, says Eduardo Montero.

1982

Year TK Elevator established a presence in the Middle East

November 2022 | MEConstructionNews.com 8
Eduardo Montero, CEO Middle East of TK Elevator, discusses how intelligent mobility solutions can help cities achieve their smart and sustainability ambitions
THE BRIEFING

Our mobility solutions were also recently installed in the Lusail Stadium, where the final match of the FIFA World Cup will be held; the Lusail Plaza Towers project in the same city, which is set to be inaugurated soon, will also be proudly served by over 200 TKE units including 16 TWIN systems.

What service offerings and technology solutions does TK Elevator provide to the Middle East market?

TK Elevator is the preferred one-stop solutions provider of many property owners and managers, as well as public and private entities around the world that manage a diverse portfolio of commercial and residential properties.

On top of meeting our customers’ pain points, we strive to become their partner in growth by taking care of customers’ needs throughout the product lifecycle – from product and solution offerings to maintenance and modernisation service.

In terms of maintenance, TK Elevator has the capability to service elevators, escalators and moving walks of all makes, allowing our customers to reap the synergistic and cost benefits from economies-ofscale. Similarly, our modernisation service helps property owners create extra value for their properties.

Older buildings will benefit from modernisation in the form of vastly increased elevator passenger capacity without the need for additional elevator shafts, and in some cases increased property value and rental income. In fact, many older, first-generation tall buildings in the Middle East are due for overhauls and our modernisation service is the ideal solution for these projects, as the additional value it brings could be significant.

Speaking of projects in the Middle East, what are the latest trends you are seeing?

Sustainability is one. Following movements in the larger industry, sustainability is driving the latest building trends in the Middle East. Developers and architects today are looking for solutions to build more energy-efficient buildings for our future

generations – and greener mobility solutions are a key part of this outlook. That’s why, we offer various energy and resources-efficient products to meet the needs of residential and commercial projects, one of TWIN’s two elevator cars can be configured to park during non-peak hours to save energy while maintaining seamless services, which offers a clear advantage in terms of flexibility and efficiency over conventional double-deck configurations. Our high-speed elevators can also be equipped with regenerative drives, which recovers energy generated by elevator operations, and feed it back into the building’s power grid.

200Connectivity is another prevailing trend. Our innovative MAX and AGILE digital solutions are set to pave the path forward for connected buildings, where real-time operations monitoring as well as predictive maintenance of elevators and escalators are made possible by IoT technology and cloud-based operation insights.

MAX conveniently places the health conditions of mobility systems at the fingertips of property managers. This results in more effective maintenance arrangements and significantly reduced system down-times, leading to higher level of satisfaction for all parties.

In addition to staying on top of trends with your mobility solutions, what will the company’s focus be on moving forward?

Innovation and technical expertise are at the core of our DNA that runs through all of TK Elevator’s products and services, in reflecting our 200-year German engineering heritage. That’s why, even after we rebranded from thyssenkrupp Elevator to TK Elevator in February 2021, we continue to be very well-received by the engineering community, our customers, and end-users around the world.

In the Middle East, TWIN will continue to be our flagship offering as it is the ideal solution for the architectural wonders that are being built here as we speak. Our products have been proudly serving many iconic and newly constructed buildings as well as infrastructure projects including airports and metro stations.

Just this year, TK Elevator was awarded to supply the vertical transportation (VT) systems that will be installed at the upcoming Guggenheim Abu Dhabi Museum in Saadiyat Island’s cultural district, where we are also installing our units at the Zayed National Museum – both projects highlight our ongoing commitment to providing some of the most innovative and customer-centric mobility solutions.

Looking ahead, our customers will always be at the forefront of our growth, as we continue to create the most value for them through our safe and innovative solutions.

9 MEConstructionNews.com | November 2022 THE BRIEFING
TKE units installed in Qatar’s Lusail Plaza Towers including 16 TWIN systems

Disrupting the Luxury Property Market

A

HS Properties – the luxury real estate company owned by entrepreneur Abbas Sajwani – has added two more projects to its portfolio, bringing the company’s gross development value to US $550mn (between projects sold and under development).

Specialising in selling premium high-ticket properties, AHS Properties acquired two low-rise apartment building plots – one in Palm Jumeirah and another on Dubai Canal. The buildings – both nine stories high –will contain 25 penthouses and sky villas, offering residents exclusivity and privacy. The projects will feature state-of-the-art spas private cinemas, cigar lounges and private swimming pools on all balconies, a statement from AHS Properties said.

Shaun Killa, from Killa Design, a veteran of Dubai’s architecture sector and designer of the Museum of the

Future, has been appointed as Lead Architect, the firm pointed out.

AHS Properties entered the Dubai real estate market in November 2021 with a total asset value of more than $100mn, comprising four luxury properties in the Palm Jumeirah and Emirates Hills. Since then, the company notes that it has sold three villa projects on the Palm, with a combined value of more than $75mn.

With Dubai’s ultra-prime residential properties seeing strong demand, as investors look to invest in the emirate’s niche housing segment, prices are being pushed on the higher side by at least 15% this year. Leading property consultants have also noted that the demand for the city’s most desirable neighbourhoods, combined with restricted supply, is driving the record price growth.

Big Project ME spoke to Abbas Sajwani ahead of the announcement to discuss his thoughts on AHS Properties’ performance over the last

10 November 2022 | MEConstructionNews.com THE BRIEFING
AHS Properties, the recently launched luxury real estate company has added two new projects to its portfolio and founder Abbas Sajwani tells Big Project ME that he has no plans to slow down

year and understand how the company intends to position itself within an increasingly competitive market space.

Following the launch of AHS Properties in 2021, what has been the response to the company’s offerings?

AHS Properties was established in early 2021 with an impressive development value of $115mn. This has now grown to more than $500mn. I am extremely proud of what we have been able to achieve in such a short period of time.

Our properties do not sit on the market very long because we are offering premium mansions to a niche market. Our customers know what they want and have the resources to snatch up properties quickly. We will continually add projects to the AHS portfolio, and you will hear about our new acquisitions before the year’s end.

How does AHS Properties differentiate itself in the market space?

I bring on board the best of the best in the industry, from world renowned architects, designers, and brands to give AHS products an edge in the market. Also, aside from the traditional luxury property

areas such as Palm Jumeirah and Emirates Hills— AHS also has a new property along the Dubai Canal. We continue to give luxurious options for our clientele who are looking for a premium product but with stunning city views.

What are the company’s plans for 2023 and what’s in the project delivery pipeline? We have taken on two new product launches with our low-rise buildings

Ripe market

The Dubai property market is ripe for luxury property sales as high-net worth individuals from around the world move to the city.

on Palm Jumeirah and Dubai Canal and will be ready for the market by December 2024 with a GDV of $400mn. The exclusive projects each will have 25 sky villas and penthouses with incomparable city views.

With regards to the project launch – what sort of response do you anticipate for the project?

We have already received a lot of interest in these properties. The market is ripe for luxury property sales as high-net-worth individuals from around the world are looking to buy a second home in Dubai.

We also have clients who have bought properties from AHS and are referring others to our brand because they are happy with the product and the premium offerings that AHS offers.

How

will this project

establish AHS’ Properties brand in the market?

This will really set us apart from our competition with Shaun Killa as Lead Architect and with interior designs by 1508 London and Hirsch Bedner Associates.

Already, we have disrupted the luxury property market and more and more people are taking notice of AHS Properties.

11 MEConstructionNews.com | November 2022
THE BRIEFING
Rapid growth Since it was established in early 2021, AHS Properties has seen its development value grow to $500m, says Abbas Sajwani.
I am extremely proud of what we have been able to achieve. Our properties do not sit on the market very long because we are offering premium mansions to a niche market. Our customers know what they want and have the resources to snatch up properties quickly”

01 UNITED KINGDOM

Masdar acquires BESS developer Arlington Energy

Masdar has acquired the UK-based battery energy storage system (BESS) developer, Arlington Energy, allowing its expansion into the UK and the European renewable energy markets.

Arlington Energy works to develop, build, operate, and finance flexible energy solutions, having taken over 170MW of assets through to operation in the past two years. Masdar’s acquisition of Arlington Energy will enable the development, construction, operational management, and financing of BESS projects under one platform.

02 DENMARK

Trackunit connects 1.4m assets globally

Trackunit has connected more than 1.4 million assets globally, almost tripling the number of assets it has linked in the last year, the company has announced.

According to the technology provider, connected assets have risen from less than 500,000 a year ago, setting a new milestone and representing a significant spike in the adoption of its software.

The growth follows Trackunit’s move to partner with the industrial IoT division of Canada’s ZTR in November 2021, but also as new business comes on board ahead of the return of Bauma, the company says.

03 ITALY

Raimondi Cranes unveils new corporate identity and vision

Raimondi Cranes has unveiled a new corporate identity and vision including extensive research into two core areas of its business.

Building on almost 160 years of manufacturing history, the company announced it had invested extensive resources into two core areas:

Firstly, a new production facility implementing lean-manufacturing innovative techniques, and secondly, the development of 14 new flattops that have been optimised according to customer feedback.

04 SOUTH AFRICA

URB plans $20bn sustainable city in South Africa

Dubai-based developer, URB, has announced plans for Africa’s largest sustainable city. THE PARKS, which is said to have a development value of $20 billion and will occupy an area of 17sqkm.

The development aims to provide the world’s highest standard for sustainable living for an expected 150,000 residents in the eastern region of South Africa. It is expected to be car- and waste-free and will feature 40,000 homes across 12 residential districts and boast a mix of residential, medical, tourism, entertainment, retail, and education elements.

Orascom Construction adds $670m to backlog

$670 million worth of new contract awards were added to Orascom Construction’s backlog in Q3 2022. The new contracts bring its total awards in the nine months of 2022 to $3.1 billion.

Middle East projects comprised 70% of new awards, mainly in the infrastructure, logistics and commercial sectors. New awards signed by US subsidiaries accounted for 30% of the total.

The data centre sector accounted for a significant portion of new awards and added that its estimated consolidated backlog stood at $6.1 billion as of 30 September 2022.

Mukesh Ambani buys Dubai’s most expensive

villa

Mukesh Ambani, India’s second richest man and chairman and managing director of Reliance Industries Limited (RIL), has bought Dubai’s most expensive villa for a record-breaking US $163mn.

The Indian billionaire bought the beach-side mansion – located at the heart of the Palm Jumeirah – from the family of Mohammed Alshaya.

The ten-bedroom residence, with a private spa and indoor and outdoor pools, is said to be a short walk from the $80mn home that Ambani purchased earlier this year for his son, Anant.

12 November 2022 | MEConstructionNews.com
06 UNITED ARAB EMIRATES
THE BIG PICTURE
05 EGYPT

Arada closes $100m tap of $350m Sukuk issuance

Arada has successfully closed a US $100 million tap of its existing $350 million sukuk, which was issued in June and listed on the LSE. The tap was priced at 99 cents on the dollar, with an investor yield of 8.386%. Arada’s existing five-year fixed rate RegS debut Sukuk issuance was rated BB- by Fitch and B1 by Moody’s.

The Joint Lead Managers and Bookrunners for the tap were Standard Chartered Bank and Emirates NBD Capital, HSBC, Abu Dhabi Commercial Bank, Mashreq, Sharjah Islamic Bank, Kamco Invest, and Warba Bank.

08 QATAR Qatar Tourism announces new tourism attractions

Ahead of the FIFA World Cup Qatar 2022, Qatar Tourism has announced new tourism attractions, hotels and resorts that will be open to visitors.

The projects represent a major milestone in Qatar’s emergence as a tourist destination, with the country seeking to welcome six million visitors a year by 2030.

Highlighting the entertainment options, Qatar Tourism focused on Al Maha Island; Lusail Winter Wonderland and Lusail Boulevard; Qetaifan Island North; Corinthia Yacht Club and West Walk. A number of new beaches and beach clubs will also open.

09 OMAN

SHA completes Phase One of Hajar masterplan project in Oman

Stirling Hospitality Advisors (SHA) has announced the completion of Phase One of its mixed-use Hajar masterplan project in Oman.

The four-phase project was launched in June this year, with the firm spearheading the development across the tourism and hospitality sectors to optimise the destination’s economic potential and attract further investment.

The key development encompasses an overarching strategy to develop an attractive, profitable destination.

13 MEConstructionNews.com | November 2022 03 01 02
THE BIG PICTURE 06 05 07 08 09
07 UNITED ARAB EMIRATES

KSA’s Vision 2030 projects top US$1.1 trillion

Knight Frank report finds that the total value of real estate and infrastructure projects since the launch of Saudi Arabia’s National Transformation Plan has skyrocketed

The total value of real estate and infrastructure projects since the launch of Saudi Arabia’s National Transformation Plan in 2016 has crossed US$ 1.1 trillion according to global real estate consultancy Knight Frank.

With more than 555,000 residential units, over 275,000 hotel keys, in excess of 4.3 million sqm of retail space and over 6.1 million sqm of new office space expected by 2030, the planned construction in the Kingdom will easily make Saudi Arabia the largest construction site the world has ever known.

Healthcare, education, and wellbeing sit at the core of these transformative

plans, which will contribute to an extraordinary evolution in the Kingdom’s physical realm, making it unrecognisable from what we see today.

Away from NEOM, the US$ 20 billion Diriyah Gate is one of the Kingdom’s other colossal projects. The city-sized historic district of Diriyah will add 20,000 homes to Riyadh’s residential stock by the time it is completed in 2027.

Knight Frank estimates that 46% of construction has been completed on the US$ 5 billion spent so far. In a recent survey of 1,000 households across Saudi Arabia, Diriyah Gate was named as the third most popular giga project amongst Saudi respondents as a place to own a home, behind the Red Sea Project (2nd) and NEOM (1st).

Riyadh itself is poised to undergo explosive growth, with the population projected to close in on 17 million by 2030, up from around 7.5 million today.

To meet this ambitious growth target, the city has itself seen real estate projects worth US$ 104 billion unveiled over the last six years. Furthermore, Knight Frank points to plans for a brand-new international airport worth US$ 147 billion, details of which are expected soon.

The new international airport accounts for close to 74% of the US$ 200 billion nationwide infrastructure spend.

Sustainability is a key theme for Riyadh too, Knight Frank said, citing recent plans for the 10 square kilometre ALNAMA Smart City, which will be the capital’s first zero-carbon city, housing some 44,000 people when completed.

“Vision 2030 has lit the embers of excitement across the Kingdom and with NEOM being positioned as a crown jewel in the transformative plans, people are eager to be part of history. Super-cities like NEOM will redefine urban living in a spectacular way, while meaningfully embracing sustainability in a resource hungry region. Sub-cities like The Octagon, Trojena and The Line will set new benchmarks for luxury living in the region and with close to 30% of homeowners in Saudi prepared to spend upwards of US$ 800,000 on a second home in the Kingdom, developers have their work cut out to satisfy this pent-up demand,” Faisal Durrani, Partner – Head of Middle East Research concluded.

MALL OF ARABIA

A new super-regional mall for Riyadh US$ 325mn 200,000 sqm 2025

MALL

14 November 2022 | MEConstructionNews.com
REPORT
MARKET
MISK FOUNDATION CITY The world’s largest nonprofit city US$ 800mn US$ 181mn 78% 60,000 sqm 8,600 units 75,000 sqm 2026
OF SAUDI A colossal mega mall development US$ 4.3bn US$ 15mn 57% 3 office buildings 3,000 units 296,000 sqm 1,000+ keys 2026 THE AVENUES MALL A new mega mall development for Riyadh US$ 2.9bn US$ 1.7bn 44% 50,000 sqm 190 units 400,000 sqm 1,300 keys 2025
MEGA PROJECTS
VALUE VALUE OF COMMISSIONED PROJECTS
LAYSEN VALLEY A unique mixed-use wellbeing community US$ 1.8bn US$ 1.8bn 80% 100,000 sqm 40,000 sqm 1 hotel building 2025 DAHIYAT AL FURSAN A mixed-use residential community US$ 20bn 100,000 units Mega mall 3 hotel buildings 2027 RIYADH’S
PROJECT
15 MEConstructionNews.com | November 2022 MARKET REPORT
destination for the future
A unique and luxurious tourism destination
SALMAN PARK
largest urban park and community
ULA A world class hub for arts, culture and nature
JABAL OMAR A mega urban development project
NEOM A super city
US$ 500bn US$ 7.5bn 29% 1-2 million sqm 300,000+ units 1-2 million sqm 40-80,000 keys 2030 AMAALA
US$ 1.4bn US$ 569mn 38% 750+ units 2-3,000 keys 2028 KING
The world’s
US$ 17bn US$ 1.2bn 30% 600,000 sqm 12,000 units 500,000 sqm 2,300 keys 2027 AL
US$ 15bn US$ 700mn 49% 10,000 units 7,000+ keys 2024 JDC-
US$ 4.4bn US$ 3.9bn 83% 200+ units 135,000 sqm 11,000 keys 2024
luxury tourism project
THAKHER A mixed-use urban development US$ 8bn US$ 976mn 100% 750+ units 60,000 sqm 28,000 keys 2030 RED SEA PROJECT The world’s most ambitious
US$ 16bn US$ 3.2bn 57% 5-10,000 sqm 1,000+ units 10,000 sqm 5-10,000 keys 2030-35
mega
units
keys 2030
GATE A mixed-use cultural and historical heritage city US$
US$
46%
units
keys
ECONOMIC CITY A mixed-use mega development US$
US$
74%
470,000
2025
A mega urban development project US$
ABDULLAH
DISTRICT
business heart of Riyadh
AND RIJAL ALMAA Saudi’s natural beauty
units
CENTRAL A revitalization project centered
ECONOMIC CITY
mega
for the future
ARABIA’S GIGA PROJECTS CURRENT CONSTRUCTION PROGRESS OFFICE (SQM) RESIDENTIAL RETAIL HOSPITALITY EXPECTED COMPLETION DATE
QIDDIYAH An entertainment-led
development US$ 9bn US$ 2.5bn 61% 80-100,000 sqm 3,000+
150,000+ sqm 3,000+
DIRIYAH
20bn
5bn
1 million+ sqm 20,000
250,000 sqm 2-4,000
2027 JEDDAH
30bn
1.7bn
800,000 sqm
sqm
MASAR-MAKKAH
4.4bn US$ 1.7bn 67% 990,000 sqm 10,000+ units 185,000 sqm 40,000 keys 2030 KING
FINANCIAL
The
US$ 10.5bn US$ 10bn 98% 900,000 sqm 1,000+ units 100,000+ sqm 500+ keys 2027 SDC-SOUDAH
US$ 3bn 1,300+
300 units 2,700 keys 2031 JEDDAH
on history US$ 20bn 17,000 units 2,700 keys 2030 KING ABDULLAH
A
city
US$ 8bn US$ 4.5bn 95% 95,000 sqm 10,000 units 11,000 sqm 250+ keys SAUDI

Leisure & Tourism

Experience the Kingdom W

sectors

hile most countries take decades or even centuries to make their mark on the world, some don’t let time become a limitation. Since the last global recession, many countries have realised that empowering their economies by focusing on the tried and tested global industries of tourism, construction, entertainment, and hospitality can bring in needed long-term sustainability and prosperity. However, none can claim the sheer size of the vision Saudi Arabia has set for itself. The Kingdom has in just the last few years taken considerable steps to ensure its place on the global stage. No other sector can vouch for this more than the experience design and tourism industries.

When considering the largest economy in the Middle East, one must account for the long-term vision of its Crown Prince and Prime Minister, Mohammed bin Salman. In just a few years, he brought changes to laws that have been untouchable for decades, to make the country more palatable to its rapidly growing young population.

In a surprise move in 2018, the government ended a 30-year ban on cinemas. In just 3 years, this saw the creation of 45 movie theatres with more than 1,000 films screened. This was followed by the introduction of a series of annual festivals throughout the country’s biggest cities titled Saudi Seasons, featuring concerts, automotive races and restaurant culture amongst other innumerable entertainment experiences, underscoring

November 2022 | MEConstructionNews.com 16
Thomas Gateff, co-founder and managing partner, M2L Concepts, looks at how Saudi Arabia’s design industry is set to change the MENA region’s tourism and entertainment
SAUDI ARABIA
ANALYSIS

the hunger for these experiences in the 35 million-strong population. The General Entertainment Authority in the Kingdom wants to invest US$64 billion over the next 5 years to develop its domestic entertainment industries.

Tourism has seen a boost in its future, with plans to welcome over 100 million visitors before the end of the decade. The Ministry of Tourism is investing up to US$4 billion to supercharge the industry. Gen Z is commanding even more disposable income and wants to spend it on new experiences. By offering these experiences in-country KSA can keep the spending within itself as well as increase exposure to the rich tourism opportunities in its historically rich cities and rural areas.

Al Ula, KSA’s first UNESCO World Heritage Site, is being transformed into a cultural, eco-tourism destination offering recreational activities that include sightseeing, hiking, camping, and other nature experiences. Near Riyadh, the historic city of Diriyah plans to showcase the Kingdom’s 300 years of culture by offering unique heritage experiences. Diriyah will see the development of 20 hotels, hundreds of eateries, eight museums and galleries and a golf course.

With entertainment as a focus, Qiddiya will become the world’s largest entertainment city. Featuring over 300 leisure and entertainment facilities that will include a 20,000-seat clifftop stadium, motorsports facilities, and

the world’s largest Six Flags theme park, this newly minted city wants to attract 14 million visitors per annum.

New Jeddah Downtown will focus on arts and culture, offering museums and art sites next to commercial areas, along with parks, resorts and beaches. All of this is only a small sample of the mega vision of the Kingdom, without counting the super-project NEOM, launched in 2017.

What is underscored across all these developments is the desire for the Kingdom and its leaders to ensure unique experiences for its citizens, residents, and tourists to enjoy. With

the pandemic limiting social activities, people have been desperate to enjoy more of the world now that restrictions are lifted. There is a need for spaces that are essential for the healthy development of children, and recreation for adults.

As such, investment opportunities in the Kingdom are now at an all-time high, with more requirements for leisure facilities based on economic indicators. The country has been able to foster growth despite the pandemic due to a resilient oil market, a growing number of capital developments, and the implementation of an array of distinct strategies including those mentioned above.

Albara’a Alwazir, director of economic research at the US-Saudi Business Council, said recently that ‘the growth of the Kingdom’s economy, which witnessed sizeable increases to GDP due to global oil market dynamics and steady strengthening of its non-oil GDP, will keep the construction sector active’.

We can see that from the value of construction contracts awarded in Saudi Arabia this year, with the first quarter of 2022 accounting for $12.3 billion in contracts. The sector recorded its highest quarterly growth in the second quarter of 2022 since 2014, jumping nearly 8.8% to reach $7.6 billion.

The stability and scope on offer pave the way for companies who specialise in experiences to come in and stake their claim on the future. Experience

17 MEConstructionNews.com | November 2022 ANALYSIS
100m Number of visitors to KSA expected by the end of the decade
There is a need for spaces that are essential for the healthy development of children, and recreation for adults. As such, investment opportunities in the Kingdom are now at an all-time high, with more requirements for leisure facilities”

design companies, such as ours, that focus on location-based experience and alternative reality concepts, can offers solutions such as vertical gardens and water features incorporated with biophilic elements to take advantage of the climatic conditions in the Kingdom.

Harsh summers create a need for designs that ensure comfort and safety such as ample shading to provide cooling solutions to visitors. The construction of leisure facilities requires insulation to ensure cooler climes to offset the 50°C average summer temperatures.

With US$12 billion being the value of the location-based experience economy

by next year, designers need to foresee evolving consumer behaviour when planning leisure facilities. The Kingdom has many demographics to focus on, making it critical to anticipate challenges that will be faced by this populace, and hence create more welcoming and inclusive experiences.

Sustainability is another key factor to consider, as the millennial generation has done a remarkable job focusing on climate and its impact.

Making sustainable practices a regular habit as well as following mindful living has become a regular state of affairs, which designers should keep in mind when scoping, planning and creating

Anticipating challenges

Given the many demographics within the Kingdom, it is critical to anticipate challenges faced by its populace, says Thomas Gateff.

experiences that will hopefully ensure a low to zero carbon footprint.

Underscoring the Kingdom’s clear indication that sustainable living is a priority is its NEOM development. The US$500 billion project is set to re-engineer nature itself, with the smart city encompassing an area of 26,500 square kilometres on Saudi Arabia’s Red Sea. NEOM consists of several key developments, including The Line, a 170km long linear city that will house nine million residents and be powered entirely by renewable energy; NEOM Bay, an airport city offering air travel facilities to the district; Oxagon, an industrial city offering port facilities along the Red Sea; and Trojena, the Kingdom’s outdoor skiing destination that recently won the bid to host the 2029 Asian Winter Games.

NEOM takes full advantage of the latest advancements in metaverse innovation, including the ‘second nature’ experience of virtual realities which are currently on track to be worth US$50 billion by the end of the decade. Consumer spending on VR and AR (augmented reality) could reach US$72 billion much faster, by 2024. The Kingdom wants to ensure it becomes a mainstay of these digital experiences.

Key factor

Sustainability is a key factor to consider when designing projects as the millennial generation is focused on climate and its impact.

With construction underway and thousands of companies being contracted for their expertise, there is tremendous scope for engineering experiences that will entertain, educate and empower KSA and the region.

18 November 2022 | MEConstructionNews.com
Gen Z is commanding even more disposable income and wants to spend it on new experiences.
By offering these experiences incountry KSA can keep the spending within itself as well as increase exposure”
ANALYSIS
October 2021 | MEConstructionNews.com IAN MCGAULEY, MANAGING DIRECTOR - PROJECT MANAGEMENT SERVICES AT WSP IN THE MIDDLE EAST, TALKS TO BIG PROJECT ME ABOUT THE UNIQUE ACCELERATED GRADUATE DEVELOPMENT PROGRAMME AND THE EXTRAORDINARY VALUE IT’S BRINGING TO PROJECT WORK AND CLIENT LIAISON IN KSA 20 IN PROFILE WSP November 2022 | MEConstructionNews.com “The true giga-project is about people”
21 MEConstructionNews.com | November 2022

urely, one of the most under-discussed areas when it comes to the present and future generation of projects in the Kingdom is the role of Saudi nationals themselves. Many senior construction, engineering and development professionals have long since been concerned that with experienced Expats taken out of the equation, it’s not so much a case of a skills gap, but the obvious reality that many young Saudi nationals simply don’t - as yet - have the experience of working on major projects. So how can the world’s most ambitious catalogue of public and private works be completed to the clients’ satisfaction, and what’s more, set proper benchmarks for onpoint build, delivery and handover?

One of the best solutions has been pioneered by WSP, with its multi-tiered Accelerated Graduate Development Programme - literally an ‘incubator’ that aims to fast-track both hard and soft skills development via real-world

Fast-tracking development

WSP’s Accelerated Graduate Development Programme fast-tracks both hard and soft skills development, says Ian McGauley.

project engagement and a highlyevolved mentoring quotient. Big Project ME spoke to Ian McGauley, a managing director at the forefront of the programme, about his experiences with it to date and the mechanics of how accelerated development actually works.

Having this local strength is extremely important to us as a business, because it’s a core part of how we work strategically. We pride ourselves on being a company that’s always led by its local presence: our international reach is there to help and inform where necessary, but for us, that local presence - whatever the market we are in - is all-important. There’s no better way of ensuring the quality of that approach on the ground than by having graduates who are passionate about their mission, passionate about the project, and passionate about their country. We don’t believe in superimposing the international business on the local operation, or in overriding what it’s doing. Now, we have exactly the right way of ensuring that quality on the ground.

Developing talent

WSP aims to develop a group of highly educated, extremely talented young professionals to help deliver Vision 2030.

What are the benefits WSP can enjoy if it can manage to bridge the experience gap and employ more Saudi locals? As an organisation, if we can get this right - and I think we can - we will have a group of highly educated, extremely talented people who are passionate about what they do, and will be very much drivers in delivering the goals of Saudi Vision 2030.

Plus, that enthusiasm is really contagious. I can give you a good example: our Accelerated Graduate Development Programme features an important mentoring element, and I’ve lost count of the number of times that I’ve seen ‘reverse mentoring’ take place. When we meet with the senior project teams to discuss what have been the highlights of the week, nine times out of ten they cite recent conversations with the graduates they’re mentoring - they’ve actually become inspired by the passion for the role and the project that the graduates have shown! The energy that’s been driven by that passion

22 November 2022 | MEConstructionNews.com
IN PROFILE
One of the real tests here is how organically female graduates are involved in every aspect of the work we do. For example, they are increasingly at the absolute centre of the work on-site”

is astonishing - and remember, we’re talking here about some very senior, serious expat professionals who aren’t noted for getting overly-emotional!

I always think mentoring is a twoway process, and that’s never truer than with what we’re seeing here. The interaction and enthusiasm coming from the mentoring has an important side-effect that we can’t afford to ignore.

How long will it take to address the gap in the workforce and have Saudi graduates in place to replace the expats being hired to do the roles Saudis may not have the experience for?

This isn’t a ‘quick fix’. It’s not a race, it’s a journey. The important thing is to get it right and to make sure that the Graduate Cohort is comfortable in the roles they are being given and feel extremely confident about the work that’s being delivered. One of the factors that I should mention here is that we have never had a client say they would prefer to have an experienced

expat working on a project: they have warmed to the local’s passion and energy, and appreciate the dynamics that are under way. We’re setting the process in motion, but this is a case of quality-first; it’s not something you rush unnecessarily.

Tell us more about the ‘mentoring’ aspect of the Accelerated Graduate Development Programme; how does it work in practice?

It varies from person-to-person and for each mentor. For some, it might be about a certain amount of ‘homework’ or written exercises, for others, it’s about discussing progress on a particular project: but what is constant here is that the mentoring provides a series of regular ‘check-ins’ where the mentor can share the benefit of their experience, and where the more generic tasks are always supplemented by a people-first approach and mindset.

For me, it’s not so much about a formal process as it is about

Mentoring process

WSP’s

listening and giving advice. From an HR perspective, of course there’s a platform of materials and a particular path through the curriculum - but it’s important to combine all the training in ‘hard’ skills with factors like emotional intelligence. It’s not really just about trying to create the best bridge engineer in the world, for example, but developing skills like leadership and the ability to work effectively with clients and colleagues - and knowing what to do when you’re under pressure.

At the end of the day, its also important to remember that we’re not just trying to create carbon copies of ourselves as Expats, but on-boarding people who will have different, complementary responses to challenges and opportunities.

Is there a good gender mix in the Graduate programmes, in the same way that we would see in other markets WSP operates in? Absolutely. This year, we had around

23 MEConstructionNews.com | November 2022 IN PROFILE
Accelerated Graduate Development Programme features an important mentoring element where both graduate and professional learn from each other.
570 WSP currently has over 570 employees based in Saudi Arabia

4,000 applicants for 13 positions on the Graduate Cohort, and seven of the graduates that we selected were women. One of the real tests here is how organically female graduates are involved in every aspect of the work we do. For example, they are increasingly at the absolute centre of the work on-site: I recently did a Safety Tour on one of our larger sites, and one of our female Graduate Architect’s attended, fully kitted-out in the required PPE - this would all have been unthinkable just a few years ago. Of course, these changes reflect the transitions taking place in Saudi society itself, and our Graduate Cohort reflects how women are now in the slight majority when it comes to degreelevel study in the STEM disciplines.

In Year One, we hear that graduates are revolved across four key projects in order to build diverse experiences as quickly as possible. Is this the same four projects for each graduate, or does the project choice vary for each one?

It varies for each one. We’re very concerned to customise the experience and make sure that each graduate is involved on a project that he or she can feel fully engaged with. Then, we also ensure that the sequence of projects each graduate follows builds up the right combination of skills and gives a properly-rounded training.

Are the graduates especially being deployed on the ‘mega-projects’ (where presumably, because of the longer development cycles, they can reach full maturity and go on to contribute 100%)?

That’s a very good point, and a process that we certainly follow. But remember, that although a mega-project can provide in-depth, long-term exposure, you wouldn’t necessarily want to stay on it all your working life! So we make sure that people can also transition away from these long-term activities as required, and in a way that works best for their development.

4,000

Are there any cross-cultural issues when Saudi youngsters are working with international expats?

No, there are none. When we first started this, there was a good deal of nervousness around concerns like ‘how will we make this work?’, or ‘what will happen if so-and-so says this?’, but these fears were completely unjustified.

In fact, what’s happened here is that the Graduates’ great passion has rubbed off on everyone else, and has actually created a unique style of working culture, which has very much overcome any of the challenges that you’d normally expect.

Remember, too, that there are many angles to this. It’s not a small undertaking, and we place a lot of importance on creating the right teams and the right working environment. This is actually a giga-project within a giga-project: we are quite literally building the future. After all, the true giga project isn’t about buildings and structures, it’s about people.

24 November 2022 | MEConstructionNews.com IN PROFILE
Working culture The Graduate program has created a unique working culture which has helped overcome any cultural challenges that have arisen.
Around 4,000 graduates applied for WSP’s Graduate Cohort programme this year

How do clients react and respond to seeing new graduates working on their projects?

The response from many of our clients is very positive. They’re impressed to see how WSP is creating building blocks for the next generation, and, equally, they’re inspired to experience the unique energy and passion that is evident in our young talent.

WSP values Saudis as immensely valuable assets to the company’s sustainable legacy and future projects in the country. Bringing our clients along on this journey is very important in this process and we are proud to be supporting the statement of HRH Crown Prince Mohammed bin Salman, when he said that “vibrant and lively young talented Saudis” are the future leaders for the Kingdom.

The common theme that our clients and project partners see within our graduates is their collective ambition; they are eager to learn, develop, and gain experience in order to equip themselves with the tools required to help drive the Kingdom’s growth and global competitiveness. The excitement and optimism of the younger generations paints a very promising picture for the future of Saudi Arabia. As our Accelerated Graduate Development Programme matures, our aim is to empower even more young Saudis with the opportunity to acquire global experience, mentoring, and skills development on some of the Kingdom’s most iconic projects.

Is there a preference for experienced expats, or is the Saudi talent factor important?

Depending on the sector, this may have been the case in previous

decades. However, the role of the expat workforce in Saudi Arabia continues to evolve. At the moment, what we’re seeing is that the cycle is focussed on elevating skills transfer and knowledge sharing. This is an essential step in order to help Saudi talent build deep industry knowledge and understanding of the crucial areas for future development.

The Saudi workforce participation is in a good position. This is driven by the new waves of young Saudis joining the labour force and contributing to the realisation of Saudi Vision 2030.

As more of the younger population pursue higher education and go on to gain real-world experience from multi-national organisations, the collective pool of knowledge will help the youth boost national capabilities and play a growing role in the national economy.

We hear many things about Digital platforms being crucial when it comes to winning and managing key accounts: how familiar are young graduates with these Digital tools?

Digital skills will definitely play a major role in the future of all industries. However, for our emerging talent there is also a big emphasis on developing digital competencies alongside soft skills such as problem solving, professionalism and building future-ready leadership attributes. Helping them develop the holistic skillsets which are needed to level-up their careers will enable our graduates to thrive in their preferred areas of specialism. Akin to this, we aim to upskill them in how the advancement of technologies such as Project Management Information Systems and data analytics can inform decisionmaking and drive efficiencies for programme and project delivery.

Do you believe that having Saudi graduates working on client projects can overcome specific challenges - and if so, how?

Our role as experienced leaders in this industry is to help them grow as experts in their discipline areas. Giving our graduates firsthand exposure to client projects is a vital step towards improving their knowledge of our clients’ strategic visions. Having this deep knowledge of our projects and stakeholder visions shapes their ability to interpret challenging situations and apply the best solutions to achieve the desired outcomes. We really appreciate the current clients that are supporting us to help boost the capacity of talented young Saudis in engineering professions.

How do you get your Saudi graduates involved from Day One?

Following the induction process of each intake, our graduates have the opportunity to be involved in a diverse mix of projects. These projects are all, in one way or another, being delivered to enhance the future of Saudi Arabia. There is a real pride aspect for many of our graduates in relation to key aspects of the Kingdom’s Vision Realisation Program. That’s why, from Day One, they are given the opportunity to pursue roles on projects that are aligned with their development journeys and future aspirations. These range from various major infrastructure projects within Jeddah, transport and mobility focussed projects, to roles on many of the landmark giga-projects.

How long do you believe that it takes to bring a talented graduate up to speed?

The learning timeframes for any professional vary depending on their learning styles and propensity for knowledge comprehension and retention. On top of this, some of our graduates are developing expertise in a mix of disciplines in relation to their respective development journey. At WSP, the main differentiator for getting our graduates and young professionals up to speed on key accounts is strong leadership and inclusive working environments. We pride ourselves on having workplace cultures where everyone has a chance to voice their ideas and be listened to. We believe this drive for equality and inclusion more than anything else strengthens the unity and collective success of our teams.

25 MEConstructionNews.com | November 2022 IN PROFILE
Jafar Alsenan, Client Services Lead, WSP Middle East:
“Accruing experience with the best”
Giving our graduates firsthand exposure to client projects is a vital step towards improving their knowledge of our clients’ strategic visions”

Understanding the complexities of making Vision 2030 a reality

About the Construction Intel Summit KSA

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

Therefore, as the GCC’s largest country moves towards a more diverse and sustainable economy, it is essential that the global construction industry equips itself with the knowledge and insight to grasp the unprecedented opportunities presented to them by Saudi Arabia’s transformation.

This is why the Construction Intel Summit KSA is coming to Riyadh on November 23, 2022. The third edition, and the first live iteration, the Construction Intel Summit KSA aims to inform and educate attendees about the massive opportunities that remain across the Kingdom of Saudi Arabia.

Focusing on four key themes: Design Considerations, Project Interfaces, the Energy Transition and Enabling Saudization, this one-day event aims to bring together leading experts from inside and outside the Kingdom to share their experiences and knowledge with representatives of the country’s construction and real estate sector.

Make Connections

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

2022 Agenda

The Construction Intel Summit KSA will combine high-level panel discussions, keynote speeches and expert presentations to communicate the views of industry experts and change-leaders.

Unique Opportunity

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

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The event will focus on four key themes: z Visionary Designs: Design Considerations and Procurement Strategies to achieve Vision 2030 z Project Interfaces: Integrating Multiple Contract Packages and Sequencing Workflows on the Kingdom’s gigaproject z Energy Transition: Providing direction and unification while driving Saudi Arabia’s Energy Transition process z Enabling Saudization: Providing pathways of growth and development to Saudi Arabia’s burgeoning talent pool of Saudi construction professionals Complimentary Register now Venue Al Faisaliah Hotel Website constructionintelsummit.com
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November 2022 | MEConstructionNews.com
MEConstructionNews.com | September 2022 29 Making History BIG PROJECT ME PROFILES DIRIYAH, THE HISTORICAL, CULTURAL AND LIFESTYLE MEGAPROJECT COMING UP IN RIYADH, SAUDI ARABIA, THAT WILL TRANSFORM THE KINGDOM’S CAPITAL ONCE COMPLETED PROJECT PROFILE Diriyah MEConstructionNews.com | November 2022 PROJECT NAME: Diriyah PROJECT DEVELOPER: Diriyah Gate Development Authority PROJECT SIZE: 14sqkm INVESTMENT PIPELINE: US$50.6 billion PROJECT COMPLETION: 2025 (Phase One)

n November 2020, King Salman bin Abdulaziz, the ruler of Saudi Arabia, laid the foundation stone for Diriyah Gate, marking the launch of one of the Kingdom’s most important projects –one that will reshape its capital Riyadh and provide resident and visitors with a completely new lifestyle experience.

Situated approximately 15 minutes away from Riyadh’s city centre, Diriyah is a massive development project that aims to become a mixed-use historic, cultural and lifestyle destination, built around Saudi Arabia’s historical birthplace and a UNESCO heritage site in At-Turaif.

The megaproject aims to showcase 300+ years of the Kingdom’s history via a range of experiences focused on heritage, hospitality, education, retail, and dining. Created in the Najdi architectural style, Diriyah will embody the principles of both new urbanism and historical architectural typology, the authority behind the project, Diriyah Gate Development Authority (DGDA), says.

Once completed, the megaproject will be home to more than twenty luxury and ultra-luxury hospitality venues, as well

as museums, galleries, public squares, retail outlets, hotels, recreational spaces, residences, educational institutions, and offices. With a projected resident population of more than 100,000 people, 55,000 jobs created, and more than 25 million visitors annually, the project will truly be transformative for the Kingdom. However, delivering it is no easy task, given the sheer size and scale of the project.

There is a total of 14 square kilometres of redevelopment planned, along with an investment pipeline worth US$50.6 billion. As a crucial part of Saudi Arabia’s Vision 2030 blueprint, it is estimated that the completed

Transformation project

The megaproject will transform Riyadh with more than 14sqkm of redevelopment planned.

project will add approximately $7.2 billion to the Kingdom’s annual GDP.

In order to deliver this gigantic undertaking, expertise is required from almost every sector. Therefore, over the last couple of years, several major contracts have been awarded, with 2022 seeing Egis receive a contract for the project management services of all phases of the South and Garden districts, while WeBuild has been awarded a $1.07 billion mega-carpark construction contract. The multistorey, mega-carpark will have space for 10,500 vehicles and will include a three-storey underground parking area, with a total built up area of nearly one million square meters. It will create more than 9,000 jobs, DGDA says.

Other notable awards from 2021 included Pace being appointed to design and supervise the construction of the six-kilometre-long spine of Wadi Hanifah Park, which is a nature-focused getaway consisting of four interactive zones; and Binyah, a business unit of Saudi Real Estate Company, being awarded a $115 million contract to carry out infrastructure work, also at Wadi Hanifah.

The Wadi is an integral part of Diriyah’s masterplan, the DGDA points out, adding that it was what drew people to the area centuries ago and led to the founding of the ancient city that is being restored today. The masterplan for the Wadi will comprise of the Heritage and Cultural Zone, the Wadi Living Zone, the Eco-Tourism Zone, and the Sports and Activity Zone.

In addition, the northern section of the development’s infrastructure was awarded to SaudiCo in 2021 as well in a $1.5 billion contract, while the southern infrastructure development contract went to a joint venture between El Seif and China State, at a value of $1.8 billion.

Another major attraction for Diriyah is the 15,000 square metre premium dining destination, Bujairi Terrace, which is scheduled to open before the end of the year. The asset collection will include 20 food and beverage brands that are being curated to cater for both local and international markets and will form part of the overall first phase of the development.

These F&B brands have been handpicked and offer a mix of offerings to visitors and residents, with global

30 November 2022 | MEConstructionNews.com
PROJECT PROFILE
Showcasing history Diriyah will showcase 300+ years of Saudi Arabia’s history through various experiences.

flagship names sitting alongside Middle Eastern – particularly Saudi – cuisine to ensure authenticity and context.

Founded in 2017, Diriyah Gate Development Authority’s mandate has been to preserve and celebrate the historic city, while also ensuring that the gigaproject is developed on schedule.

Big Project ME was invited by DGDA to tour the gigantic site earlier this year, and was able to speak with Mohamed Saad, vice president and chief development officer at DGDA, about progress on site and the impact of the project overall.

“One of the biggest challenges has been [to build around and preserve the historical and cultural landmarks].

Especially around Wadi Hanifa, which has historically been planted and over the years, people damaged the wadi, building without being compliant to any codes. So, we’re demolishing all this, and restoring the wadi to its original state,” Saad says, adding that in At-Turaif, there is zero tolerance towards affecting the site in anyway, shape of form, with sensors in place to track vibrations or cracks during the construction process.

Adding to the challenge is that as the site teams are working across the megaproject, excavations and operations are uncovering new historical finds throughout the site, with Saad highlighting a recent find as an example of the care and caution the teams have to exercise.

“We were replanting a park and they reached a depth of 1.5 metres and had to pause because they started seeing evidence of mud and stone walls. We

have a protocol and a very strict policy when we do these kinds of things. We have supervision from the heritage and cultural team, things will pause and go to the culture committee, there’ll be inspections, surveyors will come and do their work, and so on.”

This consideration is especially important considering the size and scale of the infrastructure works across the site, with the massive super basement under Diriyah Square extending three levels below ground, with space for up to 10,500 cars and covering a total built up area of nearly one million square metres. The mega car park is the core of the entire project as it includes civil and structural works, tunnels, and other connections. Awarded to WeBuild’s

Pedestrian plans

The masterplan for the megaproject has kept pedestrianised access at the forefront of the planning, DGDA says.

subsidiary, Salini Saudi Arabia, it is part of a much larger infrastructure plan for the mega-development.

“It’s the central piece. We’re working now on the design of the parking structures in South and the Gardens, and we’re very close to awarding the parking on the North. All the tunnels are under construction. We’ve split into two packages – Package A, which is the northern part of the tunnels, and Package B, which is the south part. There are two different contractors as we felt that the scale and volume had to be split, just to manage the risk,” Saad says, adding that SaudiCo is working on the northern tunnel, while a JV between El Seif and China State is handling the southern one.

Furthermore, he pointed out that the Northern carpark is very close to being put out for tender, with the DGDA team just going through governance to get the required approvals.

25m

Estimated number of visitors to the project annually

“This one is under design, so we’re tendering the designer within the next couple of months. We’re working North to South, and I know that phasing isn’t a word that we’re using much here, but it (the project) is naturally moving from North to South as we go. The south will be in the design stage, and the north will be more into construction,” he elaborated.

When it comes to the utilities, Saad said that the infrastructure contracts have been awarded, with the tunnels holding the utilities inside them. A contract has been awarded to Saudi Electricity Company (SEC) for DG1, for $371.4 million, he states,

31 MEConstructionNews.com | November 2022 PROJECT PROFILE

and that a contract for DG2 is close to being signed with them as well.

He explains that the infrastructure tunnels run parallel to the vehicular tunnels so as to make it more efficient, otherwise it would cause excess usage of concrete and duplication of work. Approval has been granted for the detailed master plan for DG2, which will allow the team to move to the next step of designing infrastructure for it.

Movement through the site is a crucial consideration for the masterplan, Saad says, explaining that the topography of the site has been utilised to encourage visitors to move through the site on foot, with plenty of pedestrianised access.

“You can park your car, go to the first basement retail level and then just get out to the wadi naturally. It’s all connected. We have four metro stations – two in DG1 and two in DG2 – and they’re all underground. We cannot have above ground metro stations, and we’re coordinating with the Royal Commission for Riyadh City to prioritise two of the metro stations on one line, and the other two will be for future expansion,” he states, adding that RCRC will be the ones to award the contract for the stations.

“The metro network isn’t under construction just yet, we’re still designing with RCRC, but it will happen. The coordination and design are happening. We’re coordinating the exact locations and there will be an intersection at one station to connect the future line.”

Saad adds that a discussion is ongoing with RCRC about the timeline

Zero tolerance

DGDA says there is zero tolerance about impacting or affecting the historical landmarks and sites around Diriyah during construction.

of construction for the stations. As per their standard construction methodology, construction of a station could take up to 58 months to build.

“We’re telling them that we don’t have this time – we need to come up with innovative methodologies to construct these stations as quickly as possible,” he asserts.

Further enhancing the connectivity across the development will be ‘Hero’s Park’, which will be a link between DG 1 and DG 2. Designed as a huge open space, the park is actually a bridge crossing Riyadh’s Western Ring Road and will be the main crossing point for the site, Saad says.

“It’s the main crossing point between the two master plans. There

are also two smaller pedestrian bridges and we’re studying to see if we need further connections for pedestrians,” he adds, but stresses that the Hero’s Park will be the main point of crossing.

For now, DGDA will be developing all elements of the project themselves, Saad says, but adds that there have been some discussions held with investors, mainly around residential areas.

“The discussions that are happening are around residential – investors are interested in taking a ‘super plot’ and developing townhouses and villas. There is a lot of interest from investors in hotels, but again it’s back and forth discussions and nothing has been signed off yet.”

DG1 will be anchored from the north by King Salman Square, which is set to

November 2022 | MEConstructionNews.com 32 PROJECT PROFILE
185m
Mud bricks will be produced for use on the site
The discussions that are happening are around residential – investors are interested in taking a ‘super plot’ and developing townhouses and villas. There is a lot of interest from investors in hotels, but again it’s back and forth discussions”

be 1.5 times the size of Trafalgar Square, Saad highlights, pointing out that it can hold up to 18,000 people. The plaza will be one of the iconic gathering points for the destination, while on the South side of the plaza will be the House of Al Saud, which will be one of the flagship museums with 45,000 square metres of GFA, he states, adding that the concept design has been done by Foster + Partners.

Alongside it will be a a number of luxury hotels, with brands such as Ritz Carlton, Address, and the Four Seasons, he adds. However, the majority of the retail will be concentrated around Diriyah Square, along with five ultraluxury hotels, along with branded residential sitting across the hotels.

King Salman Mosque will be another anchor point for the development, which can accommodate up to 14,000 worshippers when its open plaza is considered. There is also a period village, which will offer visitors an authentic experience, taking them back 300 years to how people used to live in the area.

The development will also be home to a number of academies and cultural attractions, such as the Arabic Calligraphy Museum, and the Arabian Peninsula Museum, he says.

By 2025, Saad says that a number of residential projects, which are under construction, and most of the hotels in Phase One would be very advanced or close to being delivered.

“I think by the end of 2025, Diriyah Square will be in a very advanced stage,” he states.

“We were actually doing a deep dive into the program with Mace, our PMC, and one of the interesting facts we were analysing was the physical constraints of the site, as no matter what we do, we can only fit in 70,000 workers per day.

“But in order to meet our program, we need to figure out how we can fit 150,000 workers per day – double the program. When you look at the site, you have physical constraints from the west, where you have a 20-metre escarpment, and the Western Ring Road from the other side, which has limited access points.”

Between all the contractors, there are currently between 10,000 to 12,000 workers per day currently on site, but Saad stresses that this needs to ramp up

Gathering points

Diriyah will be full of gathering points to encourage social interaction and experiences.

very quickly, with 2023 and 2024 likely to be the peak periods of construction.

This challenging programme will be further complicated with the rising prices of materials and squeezed supply chains; he adds.

prices, global commodity prices, the war in Ukraine and so on.”

Therefore, as part of this deep dive with Mace, Saad reveals that serious consideration is being given to utilising off-site construction methodologies, and other construction technologies to speed up the pace of work.

“Because we cannot fit more than 70,000 people, it’s a simple mathematical problem. You need 150,000 workers, but you cannot fit them. So let us consider pre-fabrication, pre-cast options. You can get really good quality pre-cast and prefabricated options. We actually built the car park for Bujairi Terrance, which is four levels all underground, all out of precast. Just the foundation was cast in-situ, and then slabs, beams and everything was done in precast and finished within 11 months,” he elaborates, adding that Nesma carried out the project.

Another element of the project that will delivered off site will be the traditional mudbricks for the exterior leaf of the external walls.

Deep dive

A deep dive into the program has found that the project will need to utilise off-site construction technology to meet deadlines and requirements on site.

“We are feeling the pressure of inflation – the market is very dynamic with all the giga-projects happening at the same time and the supply chain is not able to cope with this pace. The big contractors who have the capability to build projects of this size and complexity are all stretched.

“Inflation is not just affected by the capacity and volume of work in the market, but also by oil

“We have already acquired one million square metres off-site, 20-kilometres north of the Diriyah site, and there we’re producing 185 million mud bricks, and we’ll be innovating this material for the contractors, so that they can go ahead and build the skeletons, the frames in concrete, and when they’ve finished, the mudbricks will be delivered to the site so they can use them (to finish the external walls),” he concludes.

33 MEConstructionNews.com | November 2022
PROJECT PROFILE
November 2022 | MEConstructionNews.com 34

Giga-Projects Consultancy in Action

Paul Godfrey speaks to Paul Sweeney, Development and Program director at Compass Project Consulting about why, when it comes to the Kingdom, the highest levels have to be the norm

The first thing I should say is that the giga-projects are hugely significant to us as a business - and indeed, for every business in our industry sector,” states Paul Sweeney. “Giga-projects represent the main pipeline of opportunity in the construction sector in KSA for the next decade and beyond.

“Of course, this scale brings with it a unique set of working requirements - and companies need to understand this before they start. For example, with the type of in-depth experience we have as an organisation, we have a fairly mature understanding of what clients want from consultants, and we believe in offering a people-first solution: one that puts a high premium on matching the right experience to the projects in question. This means we can also protect clients in terms of their development and their contractual and project aspirations.

“Giga-projects also feature a very dynamic working environment, and we can ensure that we put people in the frame who have the skillsets, experience, and professional behaviours to perform effectively in that challenging contextwhich is not for everyone.”

What are some of the other factors

that need to be put solidly in place from Day One? For example, what would be the key steps in putting together a full project programme for one of the major verticals in a KSA giga-project?

“It may sound obvious”, Paul continues, “but first and foremost ensure that the Statement of Work is clear, agreed and communicated to all the parties involved. Once this is done, you need to immediately start thinking about your ‘next steps’ - for example, who will actually be driving the project?

For us, we ensure that all senior positions are filled quickly, so that effective services can be undertaken from the outset. This early deployment allows confidence to be established, because it’s obvious that there is clear control and a communication/planning structure in place, enabling all parties to operate in their preferred area of expertise - whether that’s project management, design and engineering, commercial management, procurement, construction, or facilities management.”

TECHNOLOGY IN PARTNER LIAISON

With BIM now becoming near universal amongst all the leading players, and the expectation from clients that there will be a paperless, digital dashboard for all project data, workflow, inventory

35 MEConstructionNews.com | November 2022
INDUSTRY INSIGHT

and deliverables, how does Compass go about differentiating itself with strong digital programme management?

“Well, today it’s essential”, says Paul, “to leverage technology in the construction sector, and as such, we have formed a strategic relationship with Mastt. Mastt is a capital works specific cloud software solution for project, programme, and portfolio management; it integrates finance, risk, reporting, and analytics features in a single automated system for the most efficient and effective facilitation of PM services and reporting.

“Another factor that’s important here is the impact of tech on risk management. Mastt transforms current risk management and reporting processes out of the existing manual spreadsheet into a cost-integrated digital solution, based on the client’s own risk management framework.

“We are then able to provide an automated roll-up of risk data at project, programme, and portfolio levels, allowing for views and never-before possible levels of data interrogation and visualisation for the project’s client. This represents multi-dimensional and complex portfolio information in creative new ways - such as interactive d3 charts - which allow the identification of key project interdependencies and mean we can therefore identify and prioritise the areas of critical delay/

Project partners

The Compass approach is to be highly collaborative from the outset and to be a true project partner, asserts Paul Sweeney.

adverse circumstances on any project. This in turn enables timely active intervention to implement effective corrective action.

“This technology also helps to optimise consultant time on reporting and administration, whilst maximising the thinking time available to develop the right solutions for project problems. I believe this is where the real value in technology lies.”

Maximising thinking time

Compass utilises technology to optimise consultant time and maximise the thinking time available to develop the right solutions.

GIGA-PROJECTS AS INNOVATORS OF CLIENT RELATIONS

As the giga-projects demand new levels of technology - the highest

levels have now become the norm - and place a high premium on customised staff match-up, have there also been new demands in terms of the major stages in client liaison and the style of interaction that this would require?

Paul argues that: “I can only speak for us. The Compass approach is to be highly collaborative from the outset –to perform as a true project partner. To be an extension of our client’s team, we want to understand our clients, their priorities, challenges, and opportunities. We aim to build trust by being open, honest, clear,

36 November 2022 | MEConstructionNews.com
Giga-projects feature a very dynamic working environment, and we can ensure that we put people in the frame who have the skill-sets, experience, and professional behaviours to perform effectively in that challenging context”
INDUSTRY INSIGHT

and vigilant at all times and across all facets of the project. The client needs to understand that we are there to protect their interests, in line with all the formal contracts - and that these best interests are non-negotiable.

“This same approach extends to our interaction with the many other stakeholders inevitably engaged on a giga-project: and remember, there can be dozens of these. Stakeholders can never be ignored. They all have a role to play at some stage in the design, construction and sign off processes.

“You might imagine that you want to reduce this complexity, but you need to understand that ‘no engagement’ (or exclusion from the process) results in delay and frustration for all parties - and

that can happen at any stage in the development process. So, the clear aim should be to communicate with and overmanage all the relationships.

“In other words, to make sure that stakeholders feel involved and connected to the wider success of the project message and that they have an important part to play.”

What about agility - being quick, adaptable, and flexible? Is it just an over-worked idea and a ‘nice to have’?

Paul continues: “Again, these expectations have become the new normal. For example, we are a very agile business, with a highly responsive Senior Management Team; the co-founders of the business are involved in every aspect of the day-to-day, and decision-making

is actioned very quickly through our flat organisational structure.

“These things are found at the core of the business, too. Governance procedures are robust and agile, and overview corporate decisions can be made very rapidly, which is well received by clients who demand a responsive consultancy service. Because we’ve given these aspects a good deal of thought, we’re able to offer quick responses on general business commitments, staffing, deployment, specialist support and commercial negotiations.

“Put simply – We do as we say and are as good as our word! The clients we are dealing with across the gigaprojects would never accept anything less,” he asserts in conclusion.

37 MEConstructionNews.com | November 2022 INDUSTRY INSIGHT
30km Over 30km of ski slopes are planned at NEOM Trojena
Involving stakeholders Sweeney asserts that it is crucial to make sure stakeholders feel involved and connected to the project message.

Smart Cities require forwardfocused data management

Ambition has become the defining trait of GCC countries. In a world fraught with environmental and resource challenges, governments here have turned to the concept of smart cities as a template for society-first infrastructure. The Line, part of Saudi Arabia’s US $500 billion NEOM project, is touted by its developers as the “future of urban living” and is being built to accommodate nine million people. A mere 200m wide, it will stretch across 170km of Saudi Arabian desert and soar to half a kilometre above it. A paragon of sustainability, it will run on 100% sustainable energy sources and be free of cars and, by implication, emissions. Instead, residents will walk to facilities, each of which will be no farther than five minutes from their homes.

The Line is just one region in NEOM, and NEOM is not the Kingdom’s only smart city venture. The Red Sea Project focuses on sustainable (or regenerative) tourism. And Saudi Arabia is not the only Arab Gulf country planning smart cities.

None of these projects would be possible without recent breakthroughs in technology. Innovations in areas such as artificial intelligence (AI) and the Internet of Things (IoT) have given innovators confidence to think big, bigger, and biggest. Smart cities are visualised as seas of sensors, cameras, and other hardware that form a detailed, accurate, real-time view of the urban environment for governments, businesses,

and citizens. At the centre lies the cloud, home to and provider of all these technologies.

ACCESSIBILITY, SCALABILITY, AND SECURITY

Everything from our energy and utilities to our roads and emergency services can be improved. But to work as intended, smart cities will require careful thought on the management of data, which needs to be scalable, secure, and instantly accessible always through a variety of channels. GCC governments have already embarked on a dizzying array of digital transformation schemes to leverage emerging technologies. These projects involve a mix of refreshes of old data architectures, the integration of others, and the cleaning and transformation of data to support real-time processing for up-to-the-minute actionable intelligence.

All of this must be backed up by minimal latency and zero downtime, even (in fact, especially) during a disaster. Rivers of data flow constantly into a central lake, but lakes must be duplicated for resilience. Meanwhile, smartedge processing frameworks take care of data reduction to ensure signals can be separated from white noise, moment to moment.

This system allows authorities at the municipal and national levels to make quicker and more effective decisions. When it comes to emergency response, traffic-congestion and road-closure data allows decision-makers to plan the most effective route for first responders to safely get to an incident. The same information can be shared with citizens to help them commute more conveniently.

PLANNING FOR THE WORST

Downtime exposes the smart city society to a catalogue of inconveniences and dangers, some of them physical. Outages can also be the prelude to sophisticated cyberattacks. Good data

management and robust cybersecurity go hand in hand. Any threat posture for a smart city should include comprehensive playbooks on mitigation and disaster recovery. And when looking for protection, decision-makers should look to scalable cloud services that can offer always-on protections against internal and external threats.

The growth in worldwide urbanisation has led to an increase in the demand for public services and utilities, and hence a surge in data volumes. Good data management must account for daily, weekly, monthly, and seasonal peaks in user activity. Again, such capacity issues are best addressed through the elasticity of cloud services, which also tend to be cost-effective, and easy to deploy and use.

The cloud is likely to form the foundation of every smart city ever built. Underlying technologies are managed by a trusted partner, which allows innovators to focus on adding value for the communities they serve rather than having to devote resources to maintenance or resourcing. More experiences, services, and platforms will be added as new technologies emerge.

INNOVATION, NOT UPKEEP

More integration and data-sharing is likely to occur as confidence grows in smart cities, and as governments’ digital transformation programs reach maturity. The ability to handle multiple database formats, across the cloud and traditional sources will be critical, as will the ability to opt for hybrid and multi-cloud environments to solve problems. Data streaming models facilitate these flexibilities because they draw from multiple sources and integrate information into actionable dashboards, rather than serving up segmented snapshots.

We can imagine the results springing up across the region. Shimmering, safe, efficient, clean-energy environments stretching out to the horizon. Ever-watchful administrators keeping everything in check through the power of streaming data, and ready to react swiftly and precisely to any internal or external disruption. At the heart of this new urban paradise? The cloud – a scalable home for all the data and technologies that allow governments to automate these great societies and keep enhancing them to make life better for all citizens.

Fred Crehan is Area vice president, Emerging Markets at Confluent.

COMMENT
38 November 2022 | MEConstructionNews.com
Industry insight
Smart cities will require careful thought on the management of data, which needs to be scalable, secure, and instantly accessible ”

MICHAEL KIY

More Sustainable and Digital

The construction and real estate industry is on the verge of substantial changes. But what will the future of construction and building operations look like?

Siemens Smart Infrastructure has identified seven trends that show where the journey is headed:

1. DIGITAL BUILDING DESIGN

Digital design using BIM gives building owners much more control over their project. Thanks to BIM, they can do a virtual walk-through of their building during the design stage. This is made possible by a detailed virtual model of the building, a “digital twin,” based on the BIM data.

The virtual model allows building owners to assess implementation variants in 3D and provide feedback. They can also take financial factors into account because the costs of each design measure are stored in the digital twin. As a result, it is easy to see how a particular change will affect the price.

Based on feedback from the owner and other stakeholders, the designers adjust the project, which can then be reviewed again. These iteration cycles are short and costefficient because algorithms take a lot of the work out of the hands of the designers. The digital twin allows for transparent design across disciplines. This helps avoid errors, optimally coordinate disciplines, and always provide up-to-date cost information.

2. COLLABORATION IN THE DIGITAL TWIN

For digital design to deliver on its benefits, the stakeholders involved in construction must share their data. Only then can

transparency be established across the entire design and construction process.

In modern software development these processes are modelled on platforms such as Github or Gitlab which allow multiple programmers to collaborate on a project. The software manages all inputs, and all changes are visible to everyone. However, the construction industry is not there yet. Many stakeholders still work with disconnected two-dimensional plans or move the BIM data to other systems, leading to major adjustment losses. The desired transparency over the entire design process is currently still a pipe dream.

3. DIGITAL PROJECT MANAGEMENT

When the digital building twin is in place, the next question is in which steps the physical building will be constructed. Today, the project planners determine the sequence. It is based on experience, is usually imprecise, and is difficult to adjust if delays occur in a sub step. Digitalisation promises dramatic improvements for project management. In the future, computer-aided project management is likely to become even more refined. This, in turn, could change the way contracts are awarded for construction projects.

4. BUILDING WHILE CONSERVING RESOURCES

The construction of buildings is resourceintensive and anything but climate-friendly: Each year, approximately 4.4 billion tons of cement are produced, releasing roughly as much CO2 as 700 coal-fired power stations. New technologies can also make construction more resource efficient. For example, 3D printing promises not only more efficient processes, but also a massive reduction in the environmental footprint, because additive manufacturing can be used to print new shapes that use less construction material without compromising stability.

5. ROBOTS ON THE CONSTRUCTION SITE

Another trend that can already be seen today is the use of robots: Drilling robots from Schindler or Hilti, for example, are already in use, independently drilling holes in concrete according to data specifications. In addition, robots are already being used to manufacture complex structures from alternative building materials.

Increased cost pressure will lead to more industrial construction. Using new digital manufacturing methods, components will be produced individually and on demand. Since more elements will be integrated into prefabricated products – electrical components, for example –the construction site of the future will increasingly focus on assembling prefabricated elements.

6.

DATA-BASED BUILDING OPERATION

Heating, cooling, and domestic hot water require the most energy during the building’s operational phase. A smart building of the future will have sensors and intelligent controls to make the operation of building equipment as efficient as possible. It will also take the behaviour and needs of the building occupants into account.

The data collected in the smart building can be analysed by algorithms to optimise building management: When deviations occur, facility management is informed so that they can decide what to do. The data will be available in a standardised form, and there will be applications that process the data and offer added value, such as energy savings. These applications can be available in a virtual marketplace, and customers will be able to select those that best serve their purposes.

7. ELECTRIC VEHICLES AS POWER STORAGE

In smart buildings, energy storage will have a larger role than it does today. Electric vehicles will play an important part: During the day, when they are parked at work, they receive for instance solar power and are charged. The stored power can then be used at home in the evening. Smart systems ensure that the battery still has enough of a charge to drive back to work the next day. If the calendar shows a meeting further away, the discharge of power from the vehicle’s batteries will be stopped earlier so that the destination can be reached easily.

39 MEConstructionNews.com | November 2022 COMMENT
Michael Kiy, director of Innovation Management, Siemens Smart Infrastructure.
For digital design to deliver on its benefits, the stakeholders involved in construction must share their data”

Final update

RCU unveils designs for first AlUla neighbourhood

to create an unrivalled destination for residents and visitors, providing a harmonious environment that connects people with nature and heritage, while supplying the vital services and facilities of daily life.

AlUla says

Designs for the first model neighbourhood in AlUla have been unveiled by the Royal Commission for AlUla (RCU). The move is said to be part of the RCU’s efforts to sustainably develop AlUla County for residents.

As part of its vision, the RCU will provide over 700 units for residents

Designs for the new, integrated, model neighbourhood reflect the surrounding natural and cultural environment and creates a community lifestyle through use of available spaces between buildings, providing pedestrian paths, creating public areas, and increasing green spaces across interconnected sites, said the RCU.

The commission promotes comprehensive sustainable development in a unique cultural and natural environment in the Kingdom’s northwest, transforming the region into a leading global destination as well

Harmonious environment

The neighbourhood will connect residents with nature and heritage of the area, while creating a community lifestyle.

700 Number of residential units provided by RCU

as a great place to live and work as it continues to achieve its vision for AlUla in line with the Kingdom’s Vision 2030.

The RCU said it received applications for building permits, as part of its ongoing sustainable urban development scheme in AlUla’s Sadr and AlUla Central. To date, the scheme is active in AlMahash and AlManshiah – key visitor hubs in AlUla.

The RCU said property owners who obtain building permits can access the AlUla Design Studio, which provides a range of new community services that will have a fundamental role in the urban development scheme.

The studio will provide models of architectural designs, enabling residents to choose the most appropriate for them, in line with AlUla’s history, heritage, and aesthetics.

40 PROGRESS REPORT
C M Y CM MY CY CMY K
Neighbourhood will reflect the surrounding cultural environment, Royal Commission for
November 2022 | MEConstructionNews.com

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