Big Project ME November 2023

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November 2023

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THE BUSINESS OF CONSTRUCTION

Expertise On-Demand

BIG PROJECT ME TALKS TO TAYLOR STERLING ABOUT THE FIRM’S NEW ON-DEMAND RECRUITMENT SERVICE AND CONSTRUCTION TALENT CHALLENGES

Engineered for the future, built on experience LTM 1110-5.2 with LICCON3 The LTM 1110-5.2 with 3 new core features: the crane control system, the driver’s cab and the gearbox. The new LICCON3 crane control system comes with large touch displays and is prepared for fleet management and telematics. The ZF TraXon gearbox with DynamicPerform offers wear-free manoeuvring. Plus a modern crane design – the future of the all-terrain series. www.liebherr.com

Mobile and crawler cranes

1

CONTENTS

November 2023

08

14

18

24

28

36

ANALYSIS

FEATURES

INSIGHT

08 The Briefing

18 In Profile

28 Sustainable Impact

Jason Saundalkar speaks to Taylor Sterling’s Chris Cooper about the firm’s new on-demand talent service, and the challenges construction firms face in terms of recruitment and building a pipeline of talent

36 Comment

Hilti has launched Nuron, which aims to simplify jobsites, enhance productivity and improve operator health and safety

12 The Big Picture

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

14 Market Report

High levels of demand are continuing to fuel the UAE’s commercial real estate market says CBRE’s Taimur Khan

Expertise On-Demand

24 Project Profile Taking the Reins

Barry Lewis is tasked with leading ALEC’s growth strategy, with a focus on diversification into construction-adjacent lines of business, and further penetration across the GCC’s construction sector

BPME speaks to Stephen Flint, Managing Director at Khansaheb about the firm’s recent BESS deployment and its broader efforts to decarbonise operations

The future of transportation architecture in the region is an exciting one, where efficiency and sustainability go hand in hand writes Heriot-Watt University Dubai’s Rana El-Dabaa

40 Final Update

One Za’abeel’s ‘The Residences’ is ready for handover to residents says ICD

MEConstructionNews.com | November 2023

2

WELCOME

Introduction

Putting 2023 to bed

T

he last quarter of the year is always an interesting period, as the months are absolutely packed with conferences, exhibitions and awards ceremonies. It’s also when we at Big Project Middle East (BPME) lock in what we want to do with our various platforms in 2024.

It’s also a time of reflection for the team; 2023 has been a great year for us, as we launched several new events, all of which have been well received by the industry at large.

I believe that the success of these events reflects our relationships with all of you in the built environment who, over a coffee or a meal, give us an informal download on what’s going on in the sector, and what’s coming down the pipeline that we need to keep our eyes on. These chats are invaluable to us and I, personally, look forward to having them with all of you, whenever possible.

Before we officially close the book on 2023, the BPME team still has a couple of events to get out the way, including the first edition of the Critical Infrastructure Summit, the second live edition of the Construction Intel Summit KSA and, in early January (18th), the

November 2023 | MEConstructionNews.com

Big Project Middle East Awards. Nominations are still open but please remember that we will stop accepting nominations on 15 November. As we typically receive hundreds of nominations (and need to give each nomination the appropriate amount of time with our judges), we will not be able to offer extensions on the deadline.

There are 31 categories that you can nominate for, and each category features unique guidelines that will help you in terms of sourcing information and putting in a strong nomination. You can also read the nomination guidelines on the awards website (https://bigprojectmeawards.com) for a more general overview on best practices you can apply with regards to your nomination.

As far as what 2024, I can confirm that we will be significantly stepping up our focus on sustainable development, and will incorporate that element into the BPME brand’s various platforms, from the magazine to its conferences and awards programmes.

Although it’s taking place towards the end of the business and calendar year, COP28 and what comes from it will also influence what we do in the new year – particularly if regional governments roll out new legislation, mandates and goals on sustainable development.

Jason Saundalkar HEAD OF CONTENT

jason.s@cpitrademedia.com MEConstructionNews me-construction-news

Managing complex construction projects has never been easier BIM Management Project Collaboration Contract Management Asset Management Field Management

www.thinkproject.com

4

Licensed by Dubai Development Authority

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THE BUSINESS OF CONSTRUCTION

Group MANAGING DIRECTOR Raz Islam raz.islam@cpitrademedia.com MANAGING PARTNER Vijaya Cherian vijaya.cherian@cpitrademedia.com DIRECTOR OF FINANCE & BUSINESS OPERATIONS Shiyas Kareem shiyas.kareem@cpitrademedia.com PUBLISHING DIRECTOR Andy Pitois andy.pitois@cpitrademedia.com

Editorial

Expertise On-Demand BIG PROJECT ME TALKS TO TAYLOR STERLING ABOUT THE FIRM’S NEW ON-DEMAND RECRUITMENT SERVICE AND CONSTRUCTION TALENT CHALLENGES

HEAD OF CONTENT Jason Saundalkar jason.s@cpitrademedia.com +971 4 375 5475

Advertising SALES DIRECTOR Farhan Ahmed farhan.ahmed@cpitrademedia.com +971 4 375 5478

ON THE COVER

Big Project ME talks to Taylor Sterling’s Chris Cooper about the firm’s new on-demand talent service

Design ART DIRECTOR Simon Cobon simon.cobon@cpitrademedia.com DESIGNER Percival Manalaysay percival.manalaysay@cpitrademedia.com

Photography MEConstructionNews.com @meconstructionn MEConstructionNews me-construction-news

PHOTOGRAPHER Maksym Poriechkin maksym.poriechkin@cpitrademedia.com

Marketing & Events EVENTS EXECUTIVE Minara Salakhi minara.s@cpitrademedia.com +971 4 433 2856

Circulation & Production DATA & PRODUCTION MANAGER Phinson Mathew George phinson.george@cpitrademedia.com +971 4 375 5476

Web Development The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication. The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority to CPI Trade Publishing FZ LLC. Printed by Al Salam Printing Press LLC. CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2023. All rights reserved.

November 2023 | MEConstructionNews.com

WEB DEVELOPER Abdul Baeis abdul.baeis@cpitrademedia.com WEB DEVELOPER Umair Khan umair.khan@cpitrademedia.com FOUNDER Dominic De Sousa (1959-2015)

“The Big Project ME Awards has proved itself to be among the most distinguished in the industry with leading players in construction from the region participating. Al Naboodah Construction Group are delighted to be a part of this gathering of eminent industry professionals”.

Senan Abdullah Al Naboodah

Managing Director Al Naboodah Construction Group

The Awards Now in its 14 year, Big Project ME’s Excellence in Construction Awards has significantly expanded its scope of focus on contractors, developers, operators, projects, sustainability and individuals, and welcomes nominations from across the MENA region. th

Big Project Middle East (BPME) is one of the most recognised construction focused trade publications in the region, so winning an award means earning a wellrecognised and highly valued badge of excellence.

The Categories 31 awards are up for grabs at Big Project ME’s Excellence in Construction Awards, reflecting the full scope and size of the built environment. This year’s categories are broken into several groups including: Individual Awards; Sustainability Awards; Developer Awards; Contractor Award and Project Awards.

18 January 2024 Ritz Carlton JBR / Dubai

BigProjectMEAwards.com

6

ONLINE

LATEST NEWS

FEATURES

INDUSTRY

ByrneLooby rebrands into Ayesa

INTERVIEW: Building a regional first CONSTRUCTION

Al Zorah Development Company launches new residential project

INFRASTRUCTURE

US $5.5bn to be invested in Paraguay’s infrastructure in five years

ANALYSIS: Oman real estate returns to growth

CONSTRUCTION

Boutique Group appoints firms to create luxury hotel in Riyadh

REPORT: Dubai is number one globally for homes above US $10mn

PROPERTY

Aldar sets record occupancy for Grade A properties November 2023 | MEConstructionNews.com

Delivering a Vision – The Knowledge, REGISTER NOW Engineering, Technology and nuances 29 November 2023 transforming the Kingdom Rosh Rayhaan by Rotana, Riyadh

ONLINE

FEATURED NEWS

7

MOST POPULAR INFRASTRUCTURE

RCU and Suez ink deal to provide municipal and environmental services for AlUla Integrating Suez’s expertise into RCU’s delivery of city services will ensure the safe, sustainable, and consistent provision of water and waste solutions

CONSTRUCTION

Bahrain’s Alba achieves milestone on PS5 Block 4 Project

CONSTRUCTION

Morocco announces plans to build and upgrade stadiums ahead of 2030 World Cup A new stadium will be built at a cost of US $500mn and is expected to be ready by 2028

INFRASTRUCTURE

Third cross-border railway to be developed between China and Kazakhstan

PROPERTY

London Gate to deliver 2,000 units across Dubai in six months Developer with international credentials set to focus on prime areas of Dubai, including the Marina, Al Furjan and JVT ENERGY

Miral and Emerge to develop 524kWp project in Yas Bay Waterfront

INFRASTRUCTURE

Red Sea Global launches Saudi’s largest EV charging network 150 charging stations ready to power-up fleet of 80 courtesy sedans, as sustainable resort prepares for first tourists

FINANCE

CONSTRUCTION

Damac awards US $326.7mn contract for construction of villas in Damac Lagoons Spanning 4.5m sqm Damac Lagoons is the company’s third master community development in the city and is located adjacent to Damac Hills

18 January 2024 Dubai, UAE

NOMINATE NOW #BigProjectMEAwards2023

UAE is ranked 4th globally for renewables FDI

INFRASTRUCTURE

Construction of world’s first energy island given the all clear

MEConstructionNews.com | November 2023

8

THE BRIEFING

Productivity

The contractor’s new tools UNITED ARAB EMIRATES

With the launch of Nuron, Hilti aims to simplify jobsites, enhance productivity and improve operator health November 2023 | MEConstructionNews.com

H

ilti has launched Nuron, a new cordless platform that is said to simplify work on construction sites, enhance tool park management, drives performance to higher levels and improves operator health protection. Nuron is based on a single battery platform that covers all relevant applications from light- to heavy-duty, Hilti explained.

On construction sites, customers often need different energy sources for their tools. There are corded tools, gas-powered tools, and cordless platforms with varying voltages for various applications.

That leads to running cords, mixing fuel, searching for tools and suitable

batteries, and bringing multiple chargers. Hilti is changing this paradigm with Nuron, the firm said.

Discussing the platform, the company said that batteries and chargers are interchangeable with all Nuron tools, which is crucial for optimising tool parks and reducing business costs. The 22Volt cordless platform is said to deliver ‘unprecedented performance, enabling heavy-duty applications that were once restricted to corded, gas-powered or higher voltage battery systems. The basis for this is the completely redesigned battery interface, which ensures significantly higher power transfer than corded mains and, thus, higher performance’.

THE BRIEFING

The re-engineered Nuron batteries are also said to be more durable and include new fiberglass-reinforced housing and external shock-absorbing bumpers, which provide extra protection even in the most challenging conditions in the region.

The electronics are also fully sealed to protect against moisture, dust and other jobsite contaminants.

“On average, arranging cables and power generators in a construction site takes up about a fifth of the working day. Working across high floors, elevated and tight areas, remote and spread-out locations becomes even more complex and time-consuming. At Hilti, we create innovative products that enhance our customers’ productivity. Nuron enables professionals to convert most power tools to cordless devices, and we will continue adding more products to the same platform over the coming years,” commented Thomas Dropsit, Head of Sub Region Gulf at Hilti.

22-Volt platform The cordless platform is said to deliver ‘unprecedented performance, enabling heavy-duty applications that were once restricted to corded, gas-powered or high voltage battery systems.

Operator health and safety Hilti says its its Dust Removal System and Active Torque Control are now available with all relevant tools to minimise dust inhalation and avoid injuries caused by accidental tool rotation.

operator’s hand is removed, switching off the tool when it is accidentally dropped, the firm pointed out.

CLOUD CONNECTIVITY FOR INCREASED PRODUCTIVITY

Hilti stated that its Nuron platform also offers intelligence – all tools generate data, which are then stored on the batteries and will be sent securely to the cloud during every charge without operator interaction, the firm pointed out.

The collected data will include information such as tool usage, tool utilisation, charging location and

9

battery state-of-health, ensuring operators work with batteries in optimal conditions. This information can then be used to immediately alert individuals if action is needed or can be accessed on-demand as required and is available on mobile and desktop platforms via Hilti’s ON!Track software, Hilti added.

Dropsit concluded, “We are committed to bringing cloud connectivity feature to the United Arab Emirates by 2025. With existing Hilti services like Tool Park Management and ON!Track, tool data can be used to optimise several assets and reduce downtime and costs.”

ENHANCING HEALTH & SAFETY ON JOBSITES

The firm pointed out that its Dust Removal System and Active Torque Control are now available with all relevant tools to minimise dust inhalation and avoid injuries caused by accidental tool rotation. Active Vibration Reduction, which is billed as a critical health protection and comfort feature, has been expanded to many more tools within the Nuron portfolio to reduce operator fatigue. Furthermore, in redesigning all 100 tools available from launch, ergonomics, weight, and robustness have been optimised, and made compatible with an approved tethering system to prevent tools from falling when working at heights.

Hilti said it has also worked with construction professionals to develop two new technologies for increased safety with angle grinders. The 3D ATC system switches off the tool and activates the disc brake when there is sudden, uncontrolled movement in any direction. The same risk-reducing function comes with the new SensTech system, which senses when the MEConstructionNews.com | November 2023

10

THE BRIEFING

Stepping up decarbonisation in Azerbaijan AZERBAIJAN

ACWA Power, Masdar and SOCAR have inked a MoU to develop 500MW of renewable energy projects

November 2023 | MEConstructionNews.com

S

audi-based ACWA Power has signed a Memorandum of Understanding (MoU) with Abu Dhabi Future Energy Company (Masdar), and the State Oil Company of Azerbaijan Republic (SOCAR) to develop 500MW of renewable energy projects in Nakhchivan Autonomous Republic of the Republic of Azerbaijan.

According to a statement, the MoU was signed by Thomas Brostrom, Chief Investment Officer of ACWA Power, Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, and Afgan Isayev, Vice President of SOCAR.

THE BRIEFING

As per the terms of the MoU, the companies will pool their expertise to expedite the development of renewable energy projects that accelerate decarbonisation and help Azerbaijan achieve its Net Zero goals.

“We are thrilled to join forces with Masdar and SOCAR in our commitment to advancing clean energy solutions around the world. Our shared vision for a sustainable and decarbonised future transcends competition. By coming together, ACWA Power, Masdar and SOCAR are demonstrating our unwavering commitment to accelerate decarbonisation efforts globally. We are proud to collaborate in helping Azerbaijan advance towards its Net Zero goals, and through this partnership, we aim to set an example for the industry,” explained Marco Arcelli, Chief Executive Officer of ACWA Power.

ACWA Power is said to have entered the Azerbaijan market in 2019, with the goal of supporting the nation in meeting its renewables integration, greenhouse gas (GHG) emissions reduction, and decarbonisation targets.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar added, “We are delighted to join forces with our strategic partners to further the global energy transition and accelerate the development and deployment of renewable energy.

This builds on Masdar’s existing partnership with Azerbaijan for the 230MW Garadagh Solar PV plant, the largest in the region. With plans to develop a potential pipeline of up to 10GW of renewable energy projects in the Central Asia nation, this latest collaboration in Nakhchivan will further strengthen Azerbaijan’s Net Zero ambitions. Our alliance with ACWA Power and SOCAR demonstrates our shared goal of supporting countries to diversify their energy mix and decarbonise economies for a greener, cleaner future.”

ACWA Power said that it is currently developing a 240MW wind power plant in Azerbaijan, at an investment value of US $286mn.

In addition, four implementation

Partnership The signing of the MoU will see the development of 500MW of renewable energy projects in the Republic of Azerbaijan.

Solar PV Masdar had previously undertaken to develop the 230MW Garadagh Solar PV plant, which is said to be the largest in the region.

agreements for projects including a 1GW onshore, a 1.5GW offshore wind farm and a battery energy storage project were signed earlier this year with the Azeri Ministry of Energy, while a cooperation agreement with State Oil Company of Azerbaijan Republic (SOCAR) will enable collaboration and exploration in the fields of renewable energy and green hydrogen.

11

Afgan Isayev, Vice-President of SOCAR noted, “We are pleased to announce the formalisation of the tripartite collaboration between SOCAR and our esteemed partners, Masdar and ACWA Power, solidifying our aspiration to advancing renewable energy initiatives in Azerbaijan. Building upon our existing collaboration with Masdar and our ongoing cooperation with ACWA Power, this partnership represents a crucial milestone in our journey toward a sustainable energy future.

This strategic alliance underscores our dedication to harnessing the vast potential of solar and wind energy, furthering our efforts to reduce carbon emissions, and fostering economic growth in our region. We are excited to embark on this path of energy transition, ultimately contributing to a greener and more prosperous Azerbaijan.”

Masdar noted that it has been present and active in Azerbaijan since 2020, and developed the 230MW Garadagh solar plant, which become operational in October this year. The firm said it also signed agreements to develop onshore wind and solar projects and integrated offshore wind and green hydrogen projects with a total combined capacity of 4GW in the country.

Masdar and Azerbaijan have agreed on an option to expand the total capacity for renewable projects to 10GW across multiple technologies.

MEConstructionNews.com | November 2023

12

THE BIG PICTURE

01 UNITED STATES

03 UNITED STATES

Amazon to invest US $3.5bn into five new data centres

Cemex to deliver over 15,000m3 of lowcarbon concrete

Five new data centres will be developed at a cost of US $3.5bn according to Amazon. The firm said that the data centres will be built in New Albany, Ohio in the United States.

Construction is expected to begin in 2025 on the data centres and supporting buildings, with handovers expected to be in 2030.

According to Amazon, the investment is just the initial component of a $7.8bn commitment to expand data centers in the state.

The Columbus area is said to now have a total of 40 data centers operated by 25 companies.

02 UNITED STATES

GCCA announces new President Fernando Gonzalez has been appointed as the President of the Global Cement and Concrete Association (GCCA). The organisation’s various members have committed to achieving Net Zero’ concrete by 2050.

Following his appointment, Gonzalez called for the industry and governments around the world to estabLish a ‘robust regulatory framework’ that can further accelerate the cement and concrete sector’s decarbonisation efforts. He has been GCCA Vice President since 2018 and succeeds the outgoing President, Jan Jenisch, whose term of office now ends after two years.

01 02 03

Cemex has announced it is providing its low-carbon Vertua concrete for the construction of Houston Methodist’s Centennial Tower, which is said to be part of the world’s largest medical complex.

The firm said it will be providing more than 15,000m3 of low-carbon concrete for the 26-storey tower, which is taking shape in Texas, in the United States, and is due for completion in 2027.

The firm notes that it has already contributed around 8,400m3 of lower carbon concrete for the tower’s foundation, which was delivered in a single 20-hour pour.

04 UNITED KINGDOM

06 ESTONIA

John Vint named MD of PMKConsult UK

RB Rail AS secures US $1.2bn in additional funding for Rail Baltic link

In line with its ambitions for geographic expansion, PMKConsult has appointed John Vint as Managing Director of PMKConsult UK. The firm said it has realised 100% revenue growth yearon-year since its merger with legacy brand 3SixtyConsult in 2020.

Following the merger, the firm launched its operations in the UK and in Saudi Arabia and is said to be managing a multimillion-dollar portfolio of projects and assignments for flagship UAE developers, well-known international brands and multi-national organisations across the MENA region, Africa and Europe.

November 2023 | MEConstructionNews.com

05 MOROCCO

Morocco announces plans to build and upgrade stadiums As part of its plans for co-hosting the 2030 World Cup, Morocco has said it plans to build a large stadium in Benslimane, near Casablanca, and upgrade six others.

According to the Prime Minister’s office, a deal was signed on the same day between the government and state-owned fund CDG to finance the new stadium to be ready by 2028 for a total cost of US $500mn.

The six stadiums to be renovated to host the African cup of nations in 2025 and the 2030 World Cup are in the cities of Agadir, Casablanca Fez, Marrakech, Rabat and Tangier.

An agreement has been signed by RB Rail AS, which will bring an additional US $1.2bn in funding from the European Cohesion Fund, for the planned high-speed Rail Baltic link across Estonia, Latvia and Lithuania.

The new financing will support several important Rail Baltica sub-projects in Estonia, including the underpinning of the line, construction of road crossings, and other infrastructure. The financing is in addition to the existing co-financing support from the three countries.

THE BIG PICTURE

13

06 04 08

05

07

09

08 KAZAKHSTAN

New rail link to be developed 07 SAUDI ARABIA

RSG announces refurbishment of Al Wajh Airport The Al Wajh Airport (EJH) will be refurbished as part of its expanded portfolio of projects, Red Sea Global (RSG) has announced.

The development is said to be focused on modernising the airport to bring it in line with international standards.

As well as upgrading the existing terminal and infrastructure, RSG is building a new international terminal, the designs of which will be revealed soon. This will see EJH ready to offer more direct flights leading to greater connectivity and job opportunities for local people.

Plans have been announced to develop a third cross-border railway between Kazakhstan and China.

An agreement was signed by the Ministry of Transport of the Republic of Kazakhstan and the State Committee for Development and Reform of the People’s Republic of China, on the joint development of cooperation on the AyagozTacheng railway construction project.

According to the statement made

by Marat Karabayev, the Minister of Transport of Kazakhstan, the agreement includes plans for a railway line that will connect the Kazakh city of Ayagoz to the Chinese city of Tacheng.

09 INDONESIA

DP World and Maspion begin development of new container terminal DP World and Indonesian conglomerate Maspion Group have begun development of a new container terminal in Gresik, East Java.

The terminal will enhance East Java’s position as a key trade gateway and connect Indonesian enterprises with customers in the region and globally, DP World noted.

The firm said that its strategic partnership with Maspion Group underscores its commitment to boost infrastructure and capacity in East Java and facilitate seamless trade in the region.

MEConstructionNews.com | November 2023

14

MARKET REPORT

Industry Outlook

UAE Office and Industrial Market Review Q3 2023 UNITED ARAB EMIRATES

High levels of demand are continuing to fuel the UAE’s commercial real estate market says CBRE’s Taimur Khan

L

easing activity in Abu Dhabi’s occupier market remained relatively solid over the third quarter of 2023, where the total number of rental registrations reached 8,814, recording a year-on-year increase of 9.8%. Over this period of time, new rental registrations in the emirate were November 2023 | MEConstructionNews.com

found to have increased by 25.2%, whereas renewed registrations dropped by 9.9%.

The vast majority of occupational activity within Abu Dhabi continues to originate from government-related entities in both on-shore and off-shore locations. That said, over the past quarter, we have seen increased demand from private sector occupiers across a range of businesses, where the legal and financial services entities have seen marked growth in occupier activity.

The availability of quality stock remains limited owing to the lack of developments.

This has led firms to secure more sizable spaces to accommodate future expansion plans. Serviced office providers are also expanding operations on the back of the elevated levels of demand for fitted and flexible spaces. Such demand is particularly prevalent from new market entrants.

ABU DHABI AND DUBAI OFFICE MARKETS

The market-wide average occupancy rate in institutional-grade buildings reached 90.8% in the third quarter, up from 87.1% a year earlier.

Rental performance has improved further on the back of the rising levels of demand, where in the year to the third quarter of 2023, average Prime, Grade A, and Grade B rents increased by 7.0%, 8.6%, and 13.0%, respectively.

Moving forward, we expect that rental growth within the Prime and Grade A segments of the market will continue to be relatively strong, owing to the lack of quality stock resulting from the scarcity of new developments alongside the elevated levels of demand. Given the prevailing market conditions, incentives coming from landlords remain relatively limited.

Meanwhile, robust levels of demand continue to be seen in Dubai’s occupier

MARKET REPORT

DUBAI OFFICES, AVERAGE OCCUPANCY RATE

DUBAI OFFICE RENTS, YOY% CHANGE

95.0%

30.0%

90.0%

25.0%

85.0%

20.0%

80.0%

15.0%

75.0%

10.0%

70.0%

5.0% 2019

2020

2021

market in the third quarter of 2023. Data published by the Dubai Land Department show that a total of 35,822 rental contracts were recorded, registering a rise of 40.7% from the year prior. During this quarter, the number of new rental registrations totalled 26,568, up 50.1% compared to the previous year. Over this period, the total number of renewed contracts reached 9,254, registering a year-on-year increase of 19.2%.

The supply and demand imbalance remains one of the major concerns, and this continues to underpin a landlord-favoured market.

The prevailing market backdrop is putting additional pressure on businesses. Global corporates, which usually have lengthier decision-making processes are, more often than not, failing to meet landlords’ tight decisionmaking timelines, with many landlords

2022

2023

Prime

Source: CBRE Research

12.0%

90.0%

10.0%

85.0%

8.0%

80.0%

6.0%

75.0%

4.0%

70.0%

2.0% 2021

2022

2023

Grade C

Grade D

drive rental growth, where in the year to the third quarter of 2023, average Prime, Grade A, Grade B, and Grade C rents increased by 10.7%, 14.4%, 20.1% and 30.0%, respectively.

With the delivery of new stock remaining limited over the upcoming period, we anticipate that the performance within this segment will remain steadfast going forward.

UAE INDUSTRIAL & LOGISTICS MARKET

In the third quarter of 2023, activity within the industrial and logistics (I&L) sector remained relatively subdued, given the lack of available stock.

This has resulted in a more landlordfavoured market, where occupiers are pushed to comply with landlords’ conditions, and the incentives provided continue to be relatively constrained.

ABU DHABI OFFICE RENTS, YOY% CHANGE

95.0%

2020

Grade B

operating on a first-come, first-served basis.

Many occupiers are instead choosing to renew leases and often committing to longer lease terms in order to ensure certainty.

However, for some, this will, in the mediumto-long term, impact their businesses’ growth plans. Moreso, with limited new developments in the pipeline and those which are seeing strong pre-leasing activity, this trend is likely to underpin the market for some time. Another notable trend which has been witnessed during this quarter is the marked increase in demand for fitted and serviced spaces, given the cost-effective/flexible solutions provided.

The average occupancy rate within this market segment reached 92.4% in Q3 2023, up from 86.9% a year earlier. The lack of availability of quality stock, paired with the elevated levels of demand, continues to

ABU DHABI OFFICES, AVERAGE OCCUPANCY RATE

2019

15

Prime

Grade C

Grade D

MEConstructionNews.com | November 2023

16

MARKET REPORT

ABU DHABI INDUSTRIAL RENTS (AED/SQM) ADAFZ

MUSAFFAH

KEZAD

ICAD

AL MARKAZ

600 550 500 450 400 350 300 Q1 2020

Q2 2020

Q3 2020

Q4 2020

In the year to the third quarter of 2023, the total number of rental contracts registered in Abu Dhabi marginally grew by 0.5%. New rental registrations increased by 13.5%, whilst renewed contracts registered dropped by 7.5%. In Dubai’s industrial and logistics market, data from the Dubai Land Department showed that Ejari registrations totalled 2,227, up 10.9% from the previous year. Over the same period, new rental contracts registered dropped by 6.1%, whilst renewals increased by 20.4%.

These market fundamentals continued to drive higher leasing rates in Abu Dhabi and Dubai, where rental rates grew by 7.5% and 17.7%, respectively, in the year to the third quarter of 2023. Average rents in Abu Dhabi reached $108 per sqm, and in Dubai, reached $11 per sqft as of Q3 2023.

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Based on recent data, the transportation and logistics sector grew by 10.5% midway through the year, registering the most significant contribution to the emirate’s GDP growth with a 42.8% contribution to the headline growth rate while achieving an added value of $8.5bn. The considerable performance within this sector will continue to attract capital and demand. That being said, the lack of availability of vacant stock that resulted from the scarcity of new developments will remain a notable issue.

Although development opportunities within this segment are substantial, the availability of infrastructure continues to pose significant hurdles. On the back of the current market backdrop, further increases in rental rates are expected moving forward in both Abu Dhabi and Dubai, however, not at the same pace.

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

“The UAE’s commercial market maintained strong performance levels during the third quarter of 2023, bolstered by the country’s hub status that continues to support strong levels of inbound investments. Despite the increasingly uncertain global economic backdrop, the UAE’s robust fiscal position and ease of doing business are expected to inhibit any potential downside risk," said Taimur Khan, Head of Research – MENA at CBRE in Dubai.

“Over the remaining quarter of the year, strong activity and performance levels will continue to be seen; that being said, we anticipate that the rate of growth in both activity and asset performance will likely moderate. The former will be underpinned by the lack of quality stock and the latter by the more uncertain global economic backdrop,” he concluded.

DUBAI INDUSTRIAL RENTS (AED/SQFT) DUBAI SILICON OASIS DUBAI SOUTH DUBAI INDUSTRIAL CITY

DAFZA AL QUSAIS UMM RAMOOL

DUBAI PRODUCTION CITY JEBEL ALI NON FREE ZONE RAS AL KHOR NATIONAL INDUSTRIES PARK JAFZA DUBAI INVESTMENTS PARK AL QUOZ

70 60 50 40 30 20 10 Q1 2020

Q2 2020

Q3 2020

Q4 2020

November 2023 | MEConstructionNews.com

Q1 2021

Q2 2021

Q3 2021

Q4 2021

Q1 2022

Q2 2022

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IN PROFILE

Taylor Sterling

Expertise On-Demand CHRIS COOPER, PARTNER AT TAYLOR STERLING TALKS TO JASON SAUNDALKAR, HEAD OF CONTENT AT BIG PROJECT MIDDLE EAST ABOUT THE FIRM’S NEW ON-DEMAND TALENT SERVICE, AND THE CHALLENGES CONSTRUCTION STAKEHOLDERS FACE IN TERMS OF RECRUITMENT, AND BUILDING A PIPELINE OF FUTURE TALENT

| MEConstructionNews.com February 2023 November 2023| MEConstructionNews.com

19

MEConstructionNews.com | November 2023

20

IN PROFILE

he GCC construction market continues to make headlines, with the key markets of Saudi Arabia and the UAE leading the charge with a total pipeline that’s said to be in excess of US $1.30tn. The need to deliver these projects in a relatively short time frame has naturally placed significant pressure on construction companies in terms of sourcing talent and other resources, which will enable them to meet their various commitments.

In response to the demand for talent and new market realities, construction and engineering executive search firm Taylor Sterling has launched a new suite of services, which are designed to meet the region’s increased demand for talent, and unlock the potential of the gig economy trends within the sector.

Here, Big Project Middle East speaks to Chris Cooper, Partner at Taylor Sterling about the firm’s on-demand talent service, and the challenges facing construction stakeholders with regards to recruitment and building a pipeline of future talent.

What was the inspiration behind launching the on-demand service?

Were your clients actively asking for it or was it a gap you sought to fill having observed the market for many years?

The demand for an on-demand, scalable source of highly experienced and top-performing individuals is not a new concept to many industries and is common practice in many parts of the world. However, it was not that prevalent in the Middle East, where the workforce is built upon being employed and on a company visa.

From a personal perspective, reaching a certain age and experience, I found myself talking more with friends and peers about a different way of working. We toyed with the idea of leaving the C-level suite of large

organisations and focusing on being knowledge providers to smaller or medium-sized businesses that could not necessarily afford us full-time.

After taking the plunge and setting up, I found more and more people doing the same or who had previously done it, but I hadn’t been aware of them. Many of these people are professionals with key skills and knowledge but were not salespeople and, therefore, struggled to get work beyond their own small networks.

The governments in the Middle East, and especially the UAE, had already set out their economic plans for the future. The UAE, as early as 2017, has been actively promoting that to be the “best economy in the world”, it needed to do many things, but being a “diversified knowledge-based economy” was one of the four key pillars.

COVID-19 accelerated the conditions already in place for Interim Talent & Knowledge Solutions, including progressive legislation changes and greater ease of doing business,

November 2023 | MEConstructionNews.com

Man on a mission Chris Cooper, Partner at Taylor Sterling.

which included small businesses and freelancers. COVID-19 also accelerated ways of working; a simple example would be that it was initially hard to change clients’ mindsets about accepting a Zoom or Teams call instead of meeting in person if we were bringing a team together with the right knowledge and skills, but based in different parts of the world. However, after COVID-19, this became a modus operandi.

These changing dynamics created more flexibility around talent solutions as clients had to make structural changes to their businesses and previous employees embraced a new way of working that was possibly against the previous model of full-time, always physically present working.

At Taylor Sterling, we aim to attract the best 5% of professionals in the field of construction and engineering. We then support them in growing their business with back-ofhouse support, community training and opportunities, and marketing their knowledge and expertise as an individual and as a complementary team with other members.

Our clients have access to this network of the best professionals across a large set of knowledge and skills sets.

Not only do clients have access to the best professionals, but Taylor Sterling can assemble specific teams for any required task or project for these clients.

What are the pros and cons of construction companies going down the route of short term/on-demand hires? Can this model work with giga projects that span several years and require knowledge to be retained?

No company can afford to have staff members sitting around and just waiting for the next opportunity to be awarded. Furthermore, the permanent employment of key staff members with specific knowledge and experience can take more than six months. It is here that Interim Talent & Knowledge Solutions can really benefit a business by making it more agile.

The advantages of Interim Talent & Knowledge Solutions are: • Rapid and temporary deployment

IN PROFILE

• Demonstrated and specialised knowledge or skill set • Unbiased viewpoint • Cost-efficient – full-time employment isn’t always necessary • Customisability and adaptability of the solution • Knowledge sharing and accessibility That said, there can be disadvantages if not delivered in a way that is fullyaligned with the business’ needs: • Short-term focus on project objectives may overlook the longterm goals of the organisation • Potential integration complications if not well thought out and communicated to current employees • Possibly limited allegiance to the organisation • Potential long-term expenses if they transition to full-time employment • Length of time taken to train and inform interim staff on the company’s way of working We can assist with ensuring that these disadvantages are limited and help any client to fully exploit the advantages. For example, when assembling teams, it is not only important that the individuals themselves have the required knowledge, experience and expertise but also that they can work and complement each other for the project’s overall benefit and achieve the desired outcomes.

What learnings did you take from other industries in terms of how they approach resourcing, and how did you incorporate it in your firm?

The right talent Cooper says that the firm’s clients have access to a network of the best professionals across a large set of knowledge and skills sets.

Healthcare, IT and technology, financial services, and management consultancy have historically used Interim Talent & Knowledge Solutions, especially in developed markets in the West. Some of the key issues that were being addressed by these differing industries included: • The historical importance of access to a pool of experienced professionals who address specific challenges and being able to call on these as required either after winning a new project or managing a needed rapid change for whatever reason • Flexibility and ability to adapt and perform whilst focusing on their core business • The drive for innovation and knowledge; this talent pool needs to be at the forefront of their game as they are selling their knowledge and experience to clients – there is a requirement that if you want to get work, you need to be the best • These Interim Knowledge practitioners and teams are extremely results-focused.

Clients utilise them to deliver tangible value to a project or organisation within a specified

21

timeframe that is clearly defined • Despite working conditions similar to the construction industry, including long hours and relentless demands, other industries had happy and more engaged workforces. These workforces were given and able to work in a more flexible way that suits and supports their life choices whilst still delivering for their clients • The use of technology is abundant and necessary, driving not just quality but also efficiency in working These insights drove the decision to develop our firm to be ‘the’ talent & knowledge solutions provider in the construction and engineering sector in the Middle East. We saw that whilst we were going to be laser-focused on the target clients and markets we serve, we needed to ensure that we provided solutions to all of the problems our clients were facing, from simple payroll administration and providing employment solutions in countries where they have no presence to finding that individual that can come in for six months to help develop a strategy.

What are some of the key issues construction stakeholders face with regards to talent and recruitment? How can these challenges be addressed?

MEConstructionNews.com | November 2023

22

IN PROFILE

We aim to attract the best 5% of professionals in the field of construction and engineering. We then support them in growing their business with backof-house support, community training and marketing their knowledge and expertise” In the construction industry in the Middle East, developers, consultants, and contractors face several challenges in relation to talent and recruitment, including: Skills Shortage: One issue that has always been at the forefront for any client is that there is a significant skills shortage in the industry, making it challenging to find qualified employees. This shortage is considered a fundamental project delivery risk, and businesses need to have comprehensive recruiting and training models to mitigate it and align with key providers to ensure they can succeed.

Modernising the Workforce: The Middle East needs to invest in talent, modernise its workforce, enhance soft skills, and hone the technical capabilities of its employees to keep up with the evolving industry.

Demand for Niche Technical Skill Sets: The demand for niche technical skill sets often requires significant pay premiums for professional qualifications and experience. This leads to a shortage of talent in niche areas.

Acquiring Talent: According to Hay’s GCC Salary Guide 2022, many employers are facing challenges in accessing skilled and experienced talent.

Employee-Focused Programmes: Failure to develop and implement

Broader diversity focus We also have to consider that equality and diversity span so much more than gender says Cooper.

Addressing talent requirements Marcus Taylor, Partner at Taylor Sterling.

November 2023 | MEConstructionNews.com

employee-focused programmes can lead to the loss of talent and damage to the company’s competitiveness.

Labour Flexibility: Flexibility in the employment of labour is considered particularly important by employers in the construction industry due to fluctuating labour requirements.

Talent Retention: With the workforce keen to upskill and demanding pay raises, job

autonomy, and fulfilment, retaining talent can be challenging.

These challenges highlight the need for a strategic approach to talent acquisition and management in the Middle Eastern construction industry.

What is your view on the industry with regards to diversity and equality? Has it improved or remained stagnant?

The construction and engineering

IN PROFILE

industry in the Middle East has made progress towards achieving diversity and equality in leaps and bounds over the years. We have seen a number of initiatives rolled out by both governments and at a company level that have had a positive impact, and we are seeing organisations making a solid effort to increase their female headcount.

We’ve also seen the industry celebrating the accomplishments of women in construction, putting the sector front and centre for the next generation of women entering the workforce. Perhaps some of the biggest strides have been taken in Saudi Arabia, where we are seeing top leadership roles filled by women.

This simply would not have been possible in the not too distant past.

However, the cynic in me wonders if some of this progress isn’t simply for PR and soundbites, and I don’t think I am alone in thinking there is still much more to do. We also have to consider that equality and diversity span so much more than gender, and true inclusivity also covers people of determination, neurodiverse people and marginalised groups. While we are definitely taking some really positive steps, I think it will be a while before this region reaches some of the major milestones associated with true diversity and equality.

What impact are nationalisation programmes having on construction companies with regards to their diversity and inclusion agendas?

At a fundamental level, any policy limiting a company’s hiring choices without additional changes will likely disadvantage them. The severity of these adverse effects is tied to the comparison between foreign and native workers regarding cost, hiring convenience, skill sets, and productivity. The company’s response to the policy will be the ultimate measure of its success.

If companies can easily replace foreign workers with native ones without incurring significant costs, or if they can easily adapt their technology, the policy’s impact on expenses and production choices will be minimal. However, if native

23

is made up of our highly experienced and top-performing advisors.

How technology plays a role in connecting these two networks is two-fold. Firstly, we use a pioneering AI solution that supports the inclusion of talent in our network based on the digital footprint of those individuals who may have previously been overlooked. Secondly, we recently welcomed Graham Almond to our core team of partners. He is an ambassador and coach for the new generation of systems, including the cutting-edge TalentTelligent suite.

The tools TalentTelligent provides are now not only at our disposal but also at our client’s disposal, and they are taking technology and methodology to a new, largely untapped level in the construction industry.

What does the built environment have to do to secure a pipeline of future talent? Are construction firms engaging enough with academic institutions?

Leveraging technology The firm uses an AI solution that supports the inclusion of talent in its network based on the digital footprint of individuals who may have previously been overlooked.

workers cannot adequately replace foreign ones or the cost is prohibitive, companies may have to modify their operations or even leave the market.

Furthermore, the policy could prove counterproductive if the negative effects on companies are too severe, leading to a decrease in native employment as many companies downsize or close.

How does Taylor Sterling identify candidates to add to its network?

Do you take advantage of technology to help with this?

We engage with two different networks.

Firstly, we have our network of employers, these are companies that meet our robust standards in terms of their leadership, culture and how they treat their people. The size or the age of a company is not really a factor in the decision to add it to our network, but we want to be confident people going to work for that organisation will be happy and engaged. Our second network is made up of our on-demand source, scalable Interim Talent & Knowledge Solutions. This network

A well-practised initiative that has been embraced by our industry and other sectors is career days, or open days, where organisations and professional bodies come together to promote the industry and secure talent. However, the truth of the matter is that the construction sector is ageing. We are not attracting enough talent to replace the old guard who are ageing out. Also, some of the larger companies arguably responsible for attracting and nurturing new talent are not investing enough or committing the resources to attracting and developing the talent needed.

While there is a place for career days and connecting with students before they join the workforce, I think we need to do more, be that further embracing technology, looking at ways to enable individuals to work remotely or creating environments that people want to work in.

Of course, some of the options available to other sectors where so much more of the work is not site-based may not work for our sector, I think the onus is on us to try and find ways to attract the best and the brightest talent to the construction and engineering industry.

MEConstructionNews.com | November 2023

24

IN PROFILE

ALEC

Taking the Reins BARRY LEWIS IS TASKED WITH LEADING ALEC’S GROWTH STRATEGY, WITH A FOCUS ON DIVERSIFICATION INTO CONSTRUCTION-ADJACENT LINES OF BUSINESS, AND FURTHER PENETRATION ACROSS THE GCC

| MEConstructionNews.com | MEConstructionNews.com October 2021 November 2023

25

MEConstructionNews.com | November 2023

26

IN PROFILE

wo major organisational changes have been announced by ALEC Engineering and Contracting (ALEC), a part of the Investment Corporation of Dubai (ICD). Barry Lewis has been appointed the firm’s new CEO, while former-CEO, Kez Taylor who led the firm for 22 years, transitions into an advisory position on the board as Non-Executive Director of ALEC. In his new role, Lewis is tasked with leading ALEC’s ambitious growth strategy, with a focus on diversification into construction-adjacent lines of business, further penetration across the GCC, including into Saudi Arabia, and expansion into new geographies.

In the months ahead, Lewis will focus on overseeing three company-defining initiatives currently in progress — ALEC’s focused expansion into Saudi Arabia; the continued diversification and growth of its business in areas such as modular and data centre solutions; and enhancing activities at TARGET, the recently acquired

subsidiary, as a leader in the Energy, Oil & Gas and Marine Industries.

Speaking to Big Project Middle East exclusively, Lewis says that ALEC has been working to create a robust ESG framework that outlines its sustainable principles and objectives, and expects that COP28 will be significant for the UAE in terms of its Net Zero ambitions.

“COP28 is set to be a significant milestone in the UAE’s journey towards achieving its Net Zero target by 2050. We expect that government entities are currently in the process of drafting legislation and regulations that will in all likelihood be unveiled at COP28. Having frameworks in place is of course essential to progress as it mandates the accountability needed to affect tangible change.”

He adds, “At ALEC, we have been working to create a robust ESG framework that clearly outlines our principles and objectives. In line with this, this year, we are set to unveil our first ever sustainability report, providing a comprehensive overview of our commitments to environmental, social and governance topics. In preparing this report, we have aimed to align with industry best practices and standards such as the Global Reporting Initiatives (GRI) Standards, Dubai Financial Market’s ESG reporting guide-lines, and the United Nations Global Compact’s

November 2023 | MEConstructionNews.com

Big win Earlier in the year, ALEC was announced as one of two main contractors that will support the delivery of the Wynn Resort in Ras Al Khaimah.

20,000 To effectively deliver its impressive pipeline of projects, ALEC continues to expand its workforce of over 22,000 employees

10 principles. While we recognise that there is still work to be done, by introducing this annual report, we have set in place the processes to quantify the impact of the sustainability initiatives that we have been implementing.”

Lewis is also quick to point out that his firm recognises that achieving sustainable outcomes calls for collaboration along the supply chain. “Any project has a number of stakeholders who must all be committed to sustainable development principles for an optimal end result.

ALEC is championing this change in the industry and working together with developers, designers, subcontractors, facilities management teams and more, to advance the sector as a whole,” he explains.

Commenting on his short- and long-term goals for the booming Saudi construction market, Lewis states, “Our entry into Saudi Arabia is a natural progression for the long-term, sustainable growth of our business. Our strategy therefore isn’t built around capitalising just on the current boom in mega and giga projects. Rather, our short-term goals have actually been developed to serve our longterm ambition of being the leading contractor and provider of constructionadjacent services and solutions to the Kingdom for decades to come.”

IN PROFILE

Outlining his longer-term strategies, Barry outlined his plans to develop greater synergies between the group’s multiple lines of business to create comprehensive and compelling value for clients. He also aims to nurture ALEC’s culture and make further investments into its people development, innovation and the adoption of digital technologies — three areas which he believes give ALEC the definitive edge when it comes to attracting the industry’s best talent, and delivering some of the most iconic projects in the region.

TALENT PIPELINE

Lewis is also keen to tackle the challenge of attracting future talent to the built environment. He highlights, “Despite being a pillar of the economy, relative to other industries, the regional construction sector isn’t necessarily perceived to be as appealing to young professionals. The future of the industry hinges on the inflow of fresh, passionate talent who bring with them new skills, and ideas.”

He adds, “Contractors, along with other stakeholders, have a

Modernising construction Earlier in the year, ALEC subsidiary LINQ received a new modular construction license from the Dubai Municipality to begin a pilot project for a G+6 building.

25%

This year, ALEC has achieved a yearto-date growth in revenue of 25%

major role to play in making the profession more attractive – whether by compensation, opportunities for growth, working hours, or other means that today’s young professionals most value in their employer.”

ALEC has been on a steady upwards growth trajectory in recent years. The company was recently awarded major projects including the Wynn Resort Ras Al Khaimah and has achieved a yearto-date growth in revenue of 25%. The current work on hand is at a record level of over $5.4bn. To effectively deliver its impressive pipeline of projects, the company continues to expand its workforce of over 22,000 employees.

The CEO transition plan has been in place for over four years, during which Lewis has played a vital role in enabling these successes and will now lead the company through its ‘next golden phase’.

“Under Kez’s leadership, ALEC has firmly established itself as one of the leading players in the region’s construction sector. With Barry Lewis as CEO, ALEC will be led through its next phase of growth, marking a new and significant milestone in

27

ALEC’s journey,” said Khalifa Al Daboos, Deputy CEO at ICD. “Having worked closely with Kez for over two decades, and having expertly led ALEC’s operations, Barry has proven himself as a highly capable leader with a strong reputation in the industry. As CEO, I am confident that Barry will take the company from strength to strength, maximising ALEC’s value proposition to our clients, and distinguishing the group as the leading provider of world-class construction and related services in the region.”

Lewis concludes, “We firmly believe that it is our people, company values and culture, willingness to embrace technology and push the boundaries of what’s possible, and relentless pursuit of excellence that have earned us a reputation as the industry’s trusted partner in delivering complex mega projects. As clients in the region continue to commission ambitious mega projects, that are establishing the Middle East as the epicentre of global tourism, culture and innovation, ALEC stands ready to turn these visions into reality.”

MEConstructionNews.com | November 2023

28

INTERVIEW

Battery Solutions

Making a Sustainable Impact MIDDLE EAST

BPME speaks to Stephen Flint, Managing Director at Khansaheb about the firms recent BESS deployment and its broader efforts to decarbonise operations

November 2023 | MEConstructionNews.com

I

n October, Khansaheb Civil Engineering announced it was the first contractor in the Middle East to use a battery energy storage system (BESS) to power large construction equipment. The firm described the rollout as a sustainability milestone, and said that deploying lithium-ion battery solutions will ‘vastly reduce carbon emissions’.

The firm said that it partnered with AJI Rentals to use Ampd Energy’s ‘Enertainer’ to power two tower cranes at the site of the Serenia Living project, which is taking shape on the Palm Jumeirah. The Enertainer is said to be a plug-and-play solution, which electrifies construction power generation, and offers a seamless, quiet, and fully automated energy supply, facilitating the construction industry’s shift away from fossil fuels.

By reducing the use of traditional diesel generators, Khansaheb said that it is reducing the comparative carbon footprint by up to 85%, utilising a system that operates at a noise level 30 times quieter, emits minimal diesel fumes, and reduces risks related to diesel handling. The firm noted that the two deployed Enertainer solutions will reduce carbon emissions by a predicted 128t over a 12-month period.

Following the announcement, Big Project Middle East caught up with Khansaheb Managing Director Stephen Flint to discuss the firm’s goals for decarbonising construction operations, and its progress to date.

The firm today employs around 8,000 people including subcontractors and notes that the most significant factors influencing its carbon footprint are: plant and transport; generators; people; heavy transport

INTERVIEW

(buses, trucks etc.) and light transport (cars, pickups, minibuses).

“In 2013 as part of our SustainAbilities Agenda we began measuring a number of critical factors that influence our Carbon Footprint namely: diesel consumption, petrol consumption, electrical power consumption, water consumption and waste. Based upon the data collected, we set ourselves annual targets for reduction of consumption and reduction of waste; these targets were converted to monthly consumption benchmarks,” says Flint.

“We have put in place systems for measuring and reporting this data, month by month across all parts of our business. We have also benchmarked the above targets against the number of people employed and turnover per annum. We have been measuring our progress for 10 years and the results we have achieved are remarkable by any standard. To achieve the targets we set across all of our operating divisions business wide, has required strategic planning and intervention as well as management intervention.”

Elaborating on the firm’s decarbonisation strategy and goals further, Flint says the firm aims to: convert its light vehicle fleet to electric vehicles; reduce reliance on heavy plant using smart technology; reduce reliance on diesel generators by using smart technology and renewable energy sources; have a continuous commitment to energy efficiency and reducing consumption at accommodation units; use low carbon and energy efficient products wherever possible in construction operations, and use renewable energy sources such as solar energy on sites.

Sharing examples of its decarbonisation efforts, the firm notes: • Its project car parking areas are fitted with solar shading connected to a solar–diesel hybrid system, renewable energy is then fed back into the project • Battery Energy Storage Systems are used to power large construction equipment • EV vehicles are being introduced in stages, as part of a stepped

At the helm Stephen Flint is Managing Director at Khansaheb.

85%

By reducing the use of traditional diesel generators, Khansaheb hopes to reduce its carbon footprint by up to 85%

change to its fleet • EV charging stations have been installed at its head office and project site offices.

These will also be fed from our solar diesel hybrid system • Catering for our workforce that ensures healthy meal choices whilst reducting energy needs to prepare • Providing energy efficient construction methods to clients and consultants • The firm has its own in-house waste recycling centre and waste collection service BESS ON JOB SITES

Going back to its earlier announcement with regards to deploying AMPD Energy’s Enertainer BESS system, and how the system was tested/validated before it was deployed, Flint responds, “The AMPD Battery Energy Storage System was first presented to us by AJI Rentals, who provided evidence of the system operating across Asia and Europe, where the system has

29

been tested and the concept proved to work successfully. AJI offered a rental solution which allowed Khansaheb to be the first to use the technology in the Middle East.”

Highlighting the benefits the BESS system can bring to jobsites across the region, he adds, “The BESS system reduces the size of the diesel generators required on site to power the tower cranes, dramatically reducing the amount of carbon emission generated. It therefore reduces the amount of fuel required to power the smaller generators, which produces large cost savings on fuel.

The BESS also ensures there is no fluctuation in the power to the tower cranes, which reduces power surges and failure to electrical components.”

Asked about how long the BESS can power the tower cranes on the jobsite, and how charging the system is tackled, Flint remarks, “Depending on the connected load drawing power, up to four to six hours. The batteries are charged with a three phase 20A-90A 400vac power connection; the power source can be from the grid, hybrid solar system or small diesel generators.”

With regards to the challenges the firm anticipates in the use of the BESS and whether the system is susceptible to hot weather-based performance degradation, Flint states, “The AMPD system has in built air conditioning units, which ensures the battery room and all heat sensitive components are in a cooled environment for optimum operating conditions. The AMPD BESS has been operational for the last two months, during the end of the summer, without any operational issues.”

He points out, “BESS deployments are new to the Middle East and will require a period of time to grow confidence in the performance and the robustness of the systems.”

Discussing what impact the BESS has had on tower crane performance, Flint comments, “The performance of the cranes has not been affected at all. The power delivered is as good as or even better than a grid connection, and the system is compatible with any make or model of tower crane.”

MEConstructionNews.com | November 2023

30

INTERVIEW

ANNUAL CONSUMPTION Unit Measure

2013

2023

Reduction

Diesel

Ltrs

13m

3m

10m

Petrol

Ltrs

1.90m

0.3m

1.6m

Electricity

KWh

20m

8m

12m

Water

Ltrs

384m

200m

184m

Waste

Tonnes

52,000

10,000

42,000

Flint says that the BESS can also provide power to passenger hoists, material lifts, welding machines, bar bending machines and concrete pumps.

SECTOR WIDE SUSTAINABILITY

While the built environment has taken steps to decarbonise, globally, it is still one of the largest emitters of greenhouse gas emissions (GHGE).

Asked for his thoughts on how the sector has tackled decarbonisation and sustainability, Flint notes that the segment has improved considerably in recent years, and must continue to do so. He also reckons that there will be further mandates from the government to ensure that the sector develops in a sustainable manner.

Highlighting how developers, building owners, consultants and contractors can contribute to meeting

the UAE’s sustainability goals, he notes: • Take a consistent approach to leading change across our industry, civil engineering and construction • Buildings and infrastructure must be procured, designed and constructed with sustainability as a priority • Mandating a sustainability plan from every business entity, which requires performance measurement and continual improvement through effective implementation of targets, goals and key performance indicators • Provide subsidies on implementing renewable energy and other easily available renewable options, such as, solar, Biodiesel, BESS, etc.

• Investing in the UAE supply chain for construction related energy efficient products and making such products readily available in the

The results we have achieved are remarkable by any standard. To achieve the targets we set across all of our operating divisions business wide, has required strategic planning and intervention as well as management intervention” November 2023 | MEConstructionNews.com

128

The two deployed Enertainer solutions will reduce carbon emissions by a predicted 128t over a 12-month period

market at a competitive price • Increase the number and distribution of construction waste reuse and recycling plants • Improve infrastructure to facilitate the use of EV vehicles • Improve the availability of EV vehicles in the UAE Discussing COP28 and what the contractor anticipates may emerge on the back of the global sustainability focused event, Flint reckons the top three requirements will be: • Fast tracking energy transition from using fossil fuel to making more efficient and effective use of renewable energy • To increase the use of electric vehicles in the UAE • To mandate performance data collection and submission to authorities. As a requirement for every business entity (above a defined size) to set measurable targets as part of corporate governance Flint concludes, “We believe that we can align our business with all these goals and mandates, the BESS deployment is a good example. Khansaheb already has a demonstrable track record of setting and achieving sustainability goals and measurable targets.”

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COMMENT

Energy

Energy efficiency to achieve greener buildings

MIDDLE EAST

Improving the energy performance of buildings is a key element in the fight against climate change says ACCIONA ME’s Luis Carlos Barroso November 2023 | MEConstructionNews.com

C

ities have become one of the most populated places in the world. Their growth changes every year with the increase and arrivals of new inhabitants, and it is estimated that this growth will go on increasing over the next few years. According to the latest United Nations report (UN), 68% of the population will live in

cities in 2050 and the building sector has enormous potential to mitigate the impact of climate change in both developed and developing countries.

This scenario means that the main cities have the challenge of becoming ‘Smart Cities’ or intelligent cities. By making the most out of the energy resources and taking advantage of Information and Communication Technology (ICT) data, it is possible

COMMENT

to create better infrastructure and city asset management, which promotes more balanced urban planning.

Smart Cities create great business opportunities for both the public and the private sectors. One of them involves the optimisation of the energy resources through energy efficiency technologies.

Energy efficiency is the series of actions that allows optimisation

Immense opportunity According to the latest United Nations report, 68% of the population will live in cities in 2050 and the building sector has enormous potential to mitigate the impact of climate change in both developed and developing countries.

of the relationship between the quantity of energy consumed and the final products and services obtained: making more from less.

The aim is to reduce the energy consumption of a given asset, and then share the associated savings between the client and the sustainability expert company.

In this way, both parties have a tangible - and quite fast - profit along with a reduction of the carbon footprint for decades to come. For some years now, there has been a growing interest in improving energy efficiency on the part of companies and public administrations.

The opportunity to make use of these technologies in the Middle East are significant since buildings in this region require heavy cooling systems to cope with the extreme seasonal heat and other energy-hungry equipment. The implementation of energy efficiency procedures in those buildings along with the commitment to renewable energies are paving the way to drastically decrease the impact to the environment.

It is important to create awareness on energy efficiency practices and to initiate more retrofitting of existing - inefficient - buildings and projects to reduce the overall energy consumption.

The residential sector is responsible for the consumption of almost 47% of the GCC’s total energy, against a global average of 25%. Considering that there are 25,000+ ongoing construction projects in the GCC right now, it is extremely important to join forces, address current challenges and harness the immense opportunities that lie ahead. Systems, hardware and equipment must be updated and appropriately maintained to reach a balance between energy and water savings. Should we not take corrective measures to improve energy efficiency in the building sector, energy demand is expected to rise every year.

One of the key drivers to attain more intelligent buildings and system integration is through the energy savings that can be

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achieved. Evaluation of occupancy patterns, application of daylight, heating, ventilation, and air conditioning (HVAC) and lighting sensors in appropriate locations are only a few examples.

A report published in October 2016 by the International Renewable Energy Agency (IRENA) noted that cities account for 65% of global energy used and 70% of manmade carbon emissions. This makes optimising energy consumption a fundamental objective of a smart city.

Therefore, efficiency is one of the principles that should govern the work undertaken by all public authorities.

Achieving the desired effect by using the least possible resources is an obligation that applies to every area of our public administrations.

In recent years, this approach has become increasingly relevant to the way they use energy resources.

Environmental awareness and the growing public concern about the effects of climate change mean that energy efficiency has become not merely our responsibility but also an opportunity, a way to encourage a greater commitment to sustainability throughout society.

By consuming energy sensibly and efficiently, public authorities are taking on an educational role and leading by example.

THE MOST MODERN TECHNOLOGIES FOR ANALYSING MILLIONS OF READINGS

The essential first steps towards saving energy involve understanding how that energy is used, how much energy is consumed, and when it is used and to do what. For this reason, it is essential to do an energy audit to understand the current energy consumption patterns and identify areas for improvement. We need to benchmark the building’s energy usage against industry standards or similar buildings to set realistic efficiency goals.

Our technical team design and implement the energy monitoring facilities, which enables the registration of consumption at all manner of facilities and systems

MEConstructionNews.com | November 2023

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COMMENT

It is important to create awareness on energy efficiency practices and to initiate more retrofitting of existing - inefficient - buildings and projects to reduce the overall energy consumption” (lighting, heating, air conditioning and thermal insulation, etc.), integrating different control solutions. Then we perform a remote real-time follow up of consumption at the facilities and of the operating processes of its customers. This enables a correct analysis of the variations detected with respect to the reference indicators, generating alarms and examining measures and alternatives in transmission and operation, thereby enabling energy consumption and economic expenses to be reduced.

The information obtained on the status and energy performance of the facilities enables the technical team to design savings measures and solutions based on customer needs, offering permanent advisory services adjusted to variability in the operation or in the use of energy consumers.

For example, some practices that aim at reducing energy usage and optimise the building’s performance are: 1. Upgrade Building Envelope: Insulating walls, roofs, and floors to prevent heat loss or gain. Seal

November 2023 | MEConstructionNews.com

Energy efficiency advocate Luis Carlos Barroso, ACCIONA ME BD Director, Facility Service.

High consumption The residential sector is responsible for the consumption of almost 47% of the GCC’s total energy, against a global average of 25%.

any gaps or cracks in the building envelope to minimise air leakage 2. Energy-Efficient Lighting: Replace traditional incandescent bulbs with energy-efficient LED lighting. Install occupancy sensors, daylight sensors, and timers to control lighting usage 3. HVAC System Optimisation: Regularly maintenance and service heating, ventilation, and air conditioning (HVAC) systems to ensure they operate efficiently. Consider implementing programmable thermostats and zone control to better manage temperature settings 4. Energy Monitoring and Reporting: Implement real-time energy monitoring systems to track energy consumption and identify anomalies. Generate regular reports to assess progress and identify areas for improvement By applying these analysis techniques examples, all sorts of specific savings and efficiency measures will be implemented, such as changes to how installations are used, the replacement of obsolete or inefficient equipment, and the use of control and automation devices.

This will allow a response to isolated alerts raised by unusual consumption and provide information that should lead to operational improvements, the identification of inefficient consumption patterns, etc.

It is imperative to cut down fossil fuel power generation plants in favor of renewable plants and alternative power plants such as waste-toenergy facilities. New residential/ commercial buildings must meet more stringent energy efficiency targets to accomplish a 30% reduction in energy consumption by 2030.

Not being able to do so will leave our future generations struggling with all the negative consequences that climate change will bring.

Improving the energy performance of buildings is a key element in the fight against climate change. With the government sector leading the adoption of retrofit projects across the GCC, we are optimistic that the above goals will be accomplished.

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COMMENT

Infrastructure

Designing airports and seaports of the future

MIDDLE EAST

The future of transportation architecture in the region is an exciting one, where efficiency and sustainability go hand in hand writes Heriot-Watt University Dubai’s Dr. Rana El-Dabaa

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he means of transportation are evolving at a rapid pace across the world. Seaports and airports, crucial hubs in the global movement of goods and people, are no exception.

As per the International Air Transport Association, global air travel is predicted to rebound significantly in 2023, with passenger levels reaching over 95% of the pre-pandemic figures. It’s anticipated that approximately 4.35bn individuals will take to the skies in 2023, compared to the 4.54bn passengers recorded in 2019.

This forecast marks a substantial resurgence in the aviation industry after the profound disruptions caused by the pandemic. The gradual return to near-normal passenger numbers is likely influenced by factors such as easing of travel restrictions, and a growing desire

November 2023 | MEConstructionNews.com

for international and domestic travel.

As travel makes a strong comeback, airports are witnessing a substantial increase in passenger numbers.

For instance, the Dubai International Airport, the world’s busiest hub, has raised its annual projections as it surpassed pre-pandemic passenger levels recorded in 2019 during the first half of 2023. Dubai Airports has reported an impressive 49% surge in passenger traffic, accommodating 41.6mn passengers in the initial six months of 2023, compared to the 27.9mn passengers served during the same period in 2022. This remarkable growth demonstrates the industry’s swift recovery and emphasises the critical role of airports in managing the surging traveller demand efficiently and safely.

As technology advances and sustainability becomes a central concern,

49%

Dubai Airports reported a 49% surge in passenger traffic passengers in the first six months of 2023

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the architecture and design of these vital transportation nodes must adapt to meet the needs of the future. Airports have historically been major contributors to greenhouse gas emissions. Given the growing environmental concerns, the primary consideration in the planning of seaports and airports is sustainability.

Prospective designs prioritise the reduction of carbon emissions and the promotion of eco-friendly practices.

Modern airport designs place a strong emphasis on energy efficiency in terminal structures, incorporating environmentally friendly materials and energy-efficient technologies.

This not only lowers energy usage but also enhances the overall traveller experience, making it more enjoyable and environmentally responsible.

Airports are embracing renewable energy sources like solar and wind power to minimise their carbon footprint.

Within the airport premises, ecofriendly transportation options such as electric shuttles or hydrogen-powered vehicles are being introduced to reduce pollution and enhance air quality.

THE EVOLUTION OF SEAPORTS

Seaports are adopting sustainable practices by implementing innovative designs and technologies to lower emissions and embrace cleaner energy sources, such as electric and hydrogenpowered cargo handling equipment. The future of seaports might include ‘vertical ports’, and multi-story container storage facilities that minimise land usage.

These vertical ports, which resemble high-rise buildings, can make better use of urban space, a crucial advantage in areas where land is scarce. These designs incorporate automated systems for moving containers within the building, increasing efficiency, and reducing labor costs. Vertical ports could redefine the concept of port facilities, maximising storage and reducing the environmental impact of expanding ports into sensitive ecosystems.

Furthermore, floating seaports are gaining popularity due to rising sea levels and the need for more efficient cargo transportation. They are resilient, adjustable, and eco-friendly. The future of airport architecture is increasingly

intertwined with green principles. These eco-friendly designs also prioritise energy efficiency and less carbon emissions.

Green airport architecture represents a forward-thinking approach to designing and constructing airports with a strong emphasis on sustainability and environmental responsibility. For instance, the Hamad International Airport in Doha, Qatar, is a great example of green airport architecture. The airport’s innovative design incorporates sustainable features such as a vast array of solar panels, energy-efficient systems, and advanced waste management techniques.

These elements significantly reduce the airport’s carbon footprint, while maintaining a high standard of service.

The integration of technology and data analytics is also leading to a significant change in the operational dynamics of seaports and airports. Through the deployment of smart infrastructure, real-time monitoring and management of maintenance and security have become possible. Furthermore, artificial intelligence and machine learning are

Efficiency Modern airport designs place a strong emphasis on energy efficiency in terminal structures, incorporating environmentally friendly materials and energy-efficient technologies, says Dr. Rana El-Dabaa.

Sustainable vision Dr. Rana El-Dabaa, Assistant Professor of Architecture at HeriotWatt University Dubai.

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poised to play a pivotal role in predicting maintenance requirements, thus ensuring uninterrupted operations.

In addition to this, facial recognition and biometric technologies are making strides in enhancing security measures and elevating the passenger experience. Furthermore, airports and seaports are increasingly adopting modular and prefabricated building techniques to streamline construction processes and minimise operational disruptions. These innovative methods offer a range of advantages, including accelerated construction timelines and greater flexibility for future expansion, enabling these vital transportation hubs to adapt to evolving needs and accommodate growth more efficiently.

Modular buildings provide flexibility for quick assembly and customisation.

They keep pace with technology and are an invaluable solution for airports and seaports. Modular construction allows seamless expansion, benefiting both operators and travellers.

DESIGNING FOR THE FUTURE

The design of seaports and airports is undergoing a remarkable transformation to meet the challenges of the future.

Aligning with the objectives of COP28, sustainable practices, innovative technology, and a renewed focus on passenger and cargo efficiency will remain at the forefront of these architectural innovations. It is estimated that around 70,000 people will be arriving in the UAE for COP28, to discuss the Paris Agreement and assess progress towards it.

During this time, Heriot-Watt University Dubai will set aside two floors of its campus as a Climate Hub to host visitors from around the world and engage in various insightful discussions to address topics of global concern including future designs and sustainable practices.

Moving forward, we anticipate seaports and airports will not only be transportation hubs but models of sustainability and cutting-edge design, enhancing our connectivity and reducing our environmental impact. The future of transportation architecture is exciting, where efficiency and sustainability go hand in hand, making the world a smaller and more eco-conscious place.

MEConstructionNews.com | November 2023

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Metaverse

Shaping tomorrow’s cities in the Metaverse MIDDLE EAST

The metaverse is opening a fresh chapter in urban planning writes Landvault CEO Samuel Huber

November 2023 | MEConstructionNews.com

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n our ever-evolving world, everything’s going digital, including how we plan and build our cities. The idea of the metaverse has developed as a transformative digital area with vast ramifications for multiple businesses. Urban planning, once rooted in the physical realm, is on the brink of a major makeover.

Urban planning and architecture could undergo a significant transformation as a result of the metaverse’s promise to provide immersive experiences, digital twins, and virtual land ownership. Given the evident tendencies of rapid expansion and amazing technological advancements in the region, its significance in defining the urban landscape, particularly within the

region, cannot be understated.

The metaverse isn’t just for gaming, entertainment, and online shopping - it’s currently giving rise to opportunities for enhancing operations in the field of urban development and planning.

In modern cities, urban planning involves structuring land use to build infrastructure for efficient distribution, communication, and transportation networks, while continuously adjusting for improvement. Building digital twins or duplicates of actual cities in the metaverse enables collaborative efforts to generate and assess various development scenarios.

This approach ensures that urban planning is not only effective but also sustainable and built to last.

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SHAPING SMARTER CITIES

In the modern world of digitisation, the public sees online experiences as the norm. From the ability to order a taxi or food with a click of a button to initiating international bank transfers from the comfort of one’s home, the simplicity of online user experience is no longer a luxury but rather an expectation. The metaverse eliminates the need for physical visits, making things convenient and accessible.

Plus, it makes delivering services smoother, user-friendly, scalable, and cost-effective, changing the way public services work.

Digital twins aren’t just plain simulations; they’re dynamic, data-packed models that let urban planners keep an eye on how cities function and change in real-time.

They are incredible for simulating different urban scenarios. Think of it as a playground for predicting floods, energy needs, traffic flow, and climate changes. These simulations empower urban planners to tackle challenges, reduce risks, and use resources wisely, leading to more resilient and eco-friendly cities.

It’s worth noting that cities like Dubai have started

Digital planning Building digital twins or duplicates of actual cities in the metaverse enables collaborative efforts to generate and assess various development scenarios.

Metaverse advocate Samuel Huber is CEO of Landvault.

creating virtual experiences. Bayut, one of the region’s leading real estate platforms has taken the initiative by incorporating ‘floor plans’ and 3D models for specific houses and apartments listed on its platform.

With the real estate market booming in the Gulf, the metaverse is opening up an entirely new prospect of opportunities. Now, individuals and businesses can possess, trade, and develop virtual land. This uncharted territory represents an economic frontier, where owning virtual land emerges as a fresh avenue for investment and expansion.

ACCESSIBLE BLUEPRINTS AND DEVELOPMENT PLANS

Inclusion is important in urban development. That’s where the metaverse provides a new approach -virtual open houses. These open houses are marking a pivotal moment for developers and architects aiming to tap into global markets.

Imagine this: you’re comfortably seated in your New York living room,

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attending a virtual open house for a property listing in Dubai. This scenario perfectly illustrates how the metaverse breaks down geographical barriers, connecting potential buyers and investors worldwide. It’s not just about expanding the market; it’s about fostering a global community of urban planners and enthusiasts.

Within this interconnected space, people from diverse backgrounds unite, bringing their unique perspectives and innovative ideas to the table. This enriches the field of urban planning with creativity and expertise.

With GCC governments investing billions in critical projects like power, water, oil and gas, transportation, and social infrastructure, the metaverse is stepping up as a super useful tool for smart planning and development.

It’s sparking innovation, teamwork, and green thinking. In conclusion, the metaverse is opening a fresh chapter in urban planning—a digital world where borders don’t exist, creativity knows no bounds, and everyone’s voice matters.

By embracing the metaverse’s potential, the GCC region and the world can shape cities that are not only smart and eco-friendly but also reflect the diverse needs and dreams of the people who call them home. As we dive into this digital future of urban planning, one thing’s clear: tomorrow’s cities are born in the metaverse.

MEConstructionNews.com | November 2023

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PROGRESS REPORT

Final Update

One Za’abeel’s ‘The Residences’ ready for handover to residents The Investment Corporation of Dubai (ICD) has announced that One Za’abeel is ready to welcome home-owners to ‘The Residences’

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he official opening of The Residences, which comprises 264 ultra luxury residential units, has been long anticipated, and the handover – which has been accelerated by two months - marks a fresh milestone for the development, said a statement.

Standing 235m tall and 59 stories high, One Za’abeel The Residences offers a mix of one, two, three, and four-bedroom simplexes and duplexes and a five-bedroom penthouse.

Beginning in November, home-owners will be welcomed to the ultimate lifestyle destination and enjoy views of Dubai with easy access to its most significant locations, ICD said.

“The road to this handover has been paved with memorable milestones that reflect the Dubai community’s desire for highquality, luxury mixed-used spaces. One Za’abeel is elated to welcome the individuals and families that have entrusted us with creating their homes as the first stage of our opening to the public. Our aim has always been to

November 2023 | MEConstructionNews.com

reflect the enterprising spirit of Dubai, and in turn, Dubai has embraced us at every stage. As we near the finalisation of this grand project we look forward to welcoming luxury-seeking and strategically minded visitors, businesses, and tourists and we are grateful for the eagerness and excitement we have received,” said Issam Galadari, Director of One Za’abeel.

Designed with meticulous care, the high-quality residences are finished with the finest craftsmanship and provide residents with an elevated living experience. Nestled within One Za’abeel, the development is a hub for world-class residences, grade-A offices, ultra-luxury retail space, the first One&Only’s vertical Urban resort at One&Only One Za’abeel, and SIRO the ultimate fitness and recovery hotel. SIRO One Za’abeel will be home to a holistic fitness and wellbeing program, in a beautifully designed hotel environment with skyline views of Dubai, the statement noted.

Billed as an architectural feat and engineering marvel, the high-rise mixed-use development is located in the heart of Dubai, and stands as a symbol of Dubai’s pioneering spirit, reflected from its sleek exterior to the finest details of its interior.

Taking its place as part of Dubai’s skyline, One Za’abeel’s twin skyscrapers are dissected by ‘The Link’, the world’s longest cantilevered building, which offers luxurious hospitality and entertainment options, ICD concluded.

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How We Build Now Tracking technology in the Middle East and North African construction 2023