Big Project ME September 2020

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THE BUSINESS OF CONSTRUCTION

A LongTerm Vision

BIG PROJECT ME LEARNS HOW THE RED SEA DEVELOPMENT COMPANY IS BUILDING A GIGA-PROJECT THAT WILL CHANGE EVERYTHING WE THINK WE KNOW ABOUT DELIVERING LARGE-SCALE PROJECTS

Experience the Progress.

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1

CONTENTS

September 2020

08

16

18

20

28

40

ANALYSIS

FEATURES

INSIGHT

08

The briefing

20

34

Comments

The big picture

Gavin Davids speaks to Ian Williamson of The Red Sea Development Company about how it is using modular and off-site technology to answer its challenges on the giga-project

36

Tenders

Progress report

Industry leaders discuss the impact of smart buildings and how modular technology could start a construction revolution

12

In profile Ian Williamson

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

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

28

Big Project ME, in association with ProTenders, provides the biggest tenders for the month of September 2020

16

Market report

Big Project ME speaks to Azizi Developments, the developer behind the massive residential project in MBR City: Riviera

40

18

Analysis

Knight Frank report looks at the opportunities available in KSA’s maturing industrial and logistics sector

Project profile A Serene Escape

Al Khozama Company says work on Phase Two of The District Al Faisaliah in Riyadh has commenced

Bishoy Azmy, CEO of ASGC, shares his views on the impact of the Coronavirus on the construction industry and the need for change

MEConstructionNews.com | September 2020

2

WELCOME

Introduction

Making the case for modular

A

few years ago, I was invited on a press trip to Bangalore, India to visit a factory where low-cost, prefabricated housing units were being developed as part of a scheme to provide affordable housing to underprivileged members of society.

During that visit, I was fortunate to not only tour an entire house made on the factory floor, but also to interact some of the materials being utilised to build it.

However, while I was considerably impressed by the technology, speed and efficiency of the ‘construction’ process, I did come away thinking that while it was perfect for highvolume, low-cost production, the quality of the finished product would unfortunately limit its uptake and usage on a truly global level.

Therefore, I was quite intrigued to hear that The Red Sea Development Company, the developer behind the gigantic Red Sea Project on the West coast of Saudi Arabia, has decided to push forward with utilising modular and off-site construction technology to help build the luxury hotels

September 2020 | MEConstructionNews.com

and resorts that will house guests and visitors to the massive eco-tourist destination.

During my conversation with Ian Williamson, TRSDC’s chief project delivery officer, it was interesting to hear how their residential township for permanent employees – known as the Coastal Village – is being developed as a test case and proving ground for the viability of these technologies.

Not only will the finished products have to be developed to a standard comparable – if not better than – any five-star luxury hotel, but given the ethos of The Red Sea Project, they will also have to be environmentally friendly and sustainable.

It’s certainly not an easy task for the suppliers, manufacturers and contractors involved with the project, and it’s going to be really interesting to see how they rise to the challenge and deliver on what is being demanded of them.

Till next month. Be safe and remember to keep social distancing.

Gavin Davids

GROUP EDITOR gavin.davids@cpitrademedia.com @MECN_Gavin MEConstructionNews me-construction-news

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Group MANAGING DIRECTOR Raz Islam raz.islam@cpitrademedia.com MANAGING PARTNER Vijaya Cherian vijaya.cherian@cpitrademedia.com

Editorial

A LongTerm Vision

BIG PROJECT ME LEARNS HOW THE RED SEA DEVELOPMENT COMPANY IS BUILDING A GIGA-PROJECT THAT WILL RESHAPE THE REGION’S CONSTRUCTION INDUSTRY WAY OF THINKING AND METHODOLOGIES

ON THE COVER

Big Project ME talks to Ian Williamson, chief project delivery officer at The Red Sea Development Company, about its utilisation of modular and off-site construction technology MEConstructionNews.com @meconstructionn MEConstructionNews me-construction-news

GROUP EDITOR Gavin Davids gavin.davids@cpitrademedia.com +971 4 375 5480 JUNIOR REPORTER Angitha Pradeep angitha.pradeep@cpitrademedia.com +971 4 375 5479 SUB EDITOR Aelred Doyle aelred.doyle@cpitrademedia.com

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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 2020. All rights reserved.

September 2020 | MEConstructionNews.com

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READERS’ COMMENTS

FEATURED

CONSTRUCTION

ENEC: BARAKAH

Amaala awards marina services contract to Saudi startup

NUCLEAR PLANT NOW SENDING MEGAWATTS OF POWER TO UAE GRID

It’s the nature of projects like this that they tend to stretch over many years, and sometimes CONSTRUCTION

decades (ENEC: Barakah

Phase Two work on track for Bahrain’s Water Garden development project

nuclear plant now sending megawatts of power to UAE grid). As such, there is a danger that the original requirement will have been surpassed by events in

Expert Voice Webinar: Ian Williamson and Shaping the Kingdom’s Future

the years that follow the initial green light. However, given the volatility

CONSTRUCTION

(socially, economically

Azelio and ALEC Energy to build verification project in Abu Dhabi in Q3 2020

and in the energy market) that we have seen in the intervening decade, this is one infrastructure project that seems more relevant than ever. Obviously, this is only the start of a long phase of testing ahead

CONSTRUCTION

of commissioning and

Riyadh’s The District Al Faisaliah redevelopment project starts second phase

then, finally, full operation but I see this as a major milestone for the region’s clean energy ambitions.

Major progress, then. We just need to ensure that we continue to explore all the other potential renewable technology out there.

CONSTRUCTION

Le Carrousel, the Moroccan capital’s new waterfront development, on course for 2022 completion September 2020 | MEConstructionNews.com

It’s the environmentally

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responsible thing to do.

Name withheld by request

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8

THE BRIEFING

Smart buildings

Changing the Way we Build MIDDLE EAST

Jeff Bennett, commercial director - Middle East, Africa and Turkey at Allegion MEA, speaks to Big Project ME about the ongoing impact of smart buildings in the way buildings are being designed and built in the region September 2020 | MEConstructionNews.com

W

ith requirements and capacities changing, how can smart building solutions support operators and users during their daily operations?

The outbreak of coronavirus pandemic has changed the way people and businesses operate. Introducing smart technology such as embedded sensors and monitor temperature can play a significant role to create a better space for all.

Going wireless is already a popular trend, and when combined with automation of a door or opening, it can help reduce the chance of

transmitting viruses and bacteria through hand-to-door contact too.

With the increasing demand for social distancing and safe infrastructure in place, businesses are redesigning their spaces, adapting them to the ‘new normal.’ Touchless door solutions can provide seamless access that’s aligned with those new requirements and provide a quality experience.

Adopting secure, smart and touchless access control solutions, addressing the unique and growing needs of the safety and security for various sectors like multifamily properties, healthcare facilities, commercial offices and education campuses, will not only reduce

9

Technology transition The construction industry will seek solutions that are touchless, scalable, and rapid.

2020

By the end of this decade, few items will be ‘dumb’

energy costs in the long run but will also enhance the end user’s experience and improve their comfort and wellbeing. We can see a lot of interest from these sectors ahead of the school year and reopening of the businesses post the lockdown phase.

How will smart building technologies impact the way we design and build structures of the future? What will be some of the biggest changes the industry will need to prepare for?

Smart technology is gaining prominence everywhere. The way we work and live is changing, and so is the way architects and designers thinking about our living spaces of the future. Smart technology is at the core of these transformational trends.

Companies involved in the construction of critical infrastructure projects such as residential, commercial, healthcare and education properties will have to place greater emphasis on contactfree technologies to maintain cleanliness and hygiene in high-traffic environments.

The transition to a “new normal” would lead construction companies to source solutions that are touchless, scalable, and rapid. The pandemic could see a brighter future for cutting-edge technology in the industry such as contact-free technology, mobile enabled multi-technology readers, augmented reality (AR), virtual reality (VR), building information modelling (BIM) and much more. These technologies actively encourage health and safety in the industry whilst helping visitors meet social distancing requirements.

They are set to stay and develop further long after COVID-19 vanishes.

To meet this demand, we have actually developed and just introduced a new touchless access solutions portfolio that is aimed at redefining access control amid the challenges exposed by the pandemic.

It’s objective is to serve the industry with secure, smart, touchless access control solutions, helping keep people safe where they live, work and thrive.

Will we ever see buildings becoming living organisms, reacting and adapting to external stimuli due to intelligent and adaptive software and technology?

The UAE is among nations adopting and introducing the most innovative solutions across different sectors.

Here are a few trends to watch out for as buildings continue to evolve:

The pandemic could see a brighter future for cuttingedge technology in the industry such as contact-free technology, mobile enabled multitechnology readers, AR, VR, BIM and much more”

A SECURE EXPERIENCE

Tech needs to guarantee its users security both from a physical and digital perspective. Data needs to be safely stored, but the hardware (eg. locks) needs to also be sturdy and stand the test of time and attempts to physically hack it.

SCALABILITY

The biggest trend in emerging tech isn’t a new device – it’s the everyday stuff around you. The spaces around us are increasingly populated by sensors and devices that connect people to one another and to digital services. In 2020, watch for physical things around you to have the ability to perceive, interact, move, and manipulate the environment with various levels of autonomy. At the end of the decade, very few items around us will be “dumb.”

Hardware and software must both be scalable. So, not only must the mechanical elements of a system stand the test of time (eg. how many times can a door be opened before the hinges break) but the digital elements need to be configured so that they can works seamlessly even when their use increases exponentially.

If not, they become subject to what is known as a memory leak, where small flaws become huge problems when the product is used at a large scale.

SIMPLICITY

The user interface must be simple.

This implies both a seamless physical integration with the surrounding ‘geography’ and intuitive digital interaction of the user with the device.

MEConstructionNews.com | September 2020

10

THE BRIEFING

Accelerated Change MIDDLE EAST

Big Project ME speaks to Riad Bsaibes, CEO of Amana Investments about how modular and off-site building is shaping up as the future for the construction industry in the post-COVID-19 era

September 2020 | MEConstructionNews.com

What goes into creating an offsite construction platform?

It is important to look at the shift in the construction ecosystem initially and the drivers shaping the industry.

The combination of sustainability requirements, cost pressure, skills scarcity, new material, and digitisation are set to transform the value chain within the ecosystem, and this in turn will create a higher level of investment in digitisation, R&D, equipment and sustainability practices.

With the region shifting to a more sustainable building practice, as well as a growing population, we are seeing a paradigm shift in the ecosystem of construction.

Coupled with the volatility in supply and demand, this has led to

the need for an agile and flexible construction solution and processes.

Within the world of modular, we are disrupting and enhancing the process without displacing the stakeholders evolved throughout the cycle. The ecosystem remains unchanged while the process has evolved and enhanced to reflect the client needs.

The entire construction process is moved into a factory and manufacturing environment, a process by which the building is subdivided into smaller units called modules, designed, and manufactured offsite in a factory.

Modules in various stages of completion form a production line that progresses from assembly to complete fit-out.

This shift into a controlled factory environment shifts 85% of construction

11

Recent shift Riad Bsaibes, CEO of Amana Investments, says that clients have recently begun asking about modular construction technologies, particularly in KSA.

30%

Reduction in manpower through modular construction

activities from the site to a factory, leading to shortened build times, earlier return on investment, lowered levels of reliability on manpower, and minimal impact on the environment. This is also an ideal scenario in a post COVID-19 era – reducing labour costs on a project by 30% with even higher savings depending on the projects’ scalability While modular construction does not necessary replace traditional construction, companies should strongly consider off-site techniques as another tool to add to the toolbox. One key value proposition off-site provides is accurate delivery mechanics, enabling clients to become more flexible with their product offering, as well as the agile management of market supply and demand. Therefore, the final products are easy relocatable, further enabling the client to shift and relocate when market needs arise.

What are some of the common challenges facing the implementation of offsite construction?

The earliest challenge faced would be the approvals of design and finishing items earlier in the process which is not common practice in the world of construction. Another is the authority approval for a new methodology of construction. Both challenges are resolved with the shift in awareness, perception, and mindset of off-site construction.

While the market was initially slow to react to implementation requests for off-site manufacturing, we have recently seen a shift whereby local companies have engaged us with a view to tapping into such methods and bringing the technology to KSA. How can firms incorporate construction technology on their off-site manufacturing projects?

This is achieved through designing in a modular mind¬set which means that all architectural, structural and electromechanical design processes occur at the same time since ‘modules’ are parts of an entire building. Buildings are designed in a Building Information Modelling (BIM) virtual environment using state of the art software such as Revit and Tekla. The advantage is a single resource

Within the world of modular, we are disrupting and enhancing the process without displacing the stakeholders evolved throughout the cycle” of information allowing all design disciplines to work together effectively.

Buildings are virtually tested, enabling asset managers to work with their consultants collectively to evaluate building performance prior to manufacturing and construction. The as built BIM model can be integrated with Facility Management (FM) software enabling Developer Teams, Asset Managers, Operators to optimally manage and control the assets.”

The result is a well synchronised product, that is error free, and comes with a seamless delivery and operation.

How has the construction industry changed in the wake of the COVID-19 pandemic?

The COVID-19 crisis has accelerated

an overdue transformation of the world’s largest ecosystem. This radical change can be expected to impact the construction value chain and offer new opportunities to arise.

The combination of sustainability requirements, cost pressure, skills scarcity, new material, and digitisation are set to transform the value chain.

This in turn will create a higher level of investment in digitisation, R&D, equipment, and sustainability.

The pandemic has accelerated the demand for modular and offsite construction as it provides a safer construction environment, reduces the need for manpower by 30%, which is an ideal solution for the post COVID-19 era. This is achieved as 85% of construction activities are shifted to a factory-controlled environment.

As changing liquidity dynamics compel architects, planners, contractors, and investors to seek increased project efficiencies, it is likely that modular solutions will further develop and gain traction across the region.

2020 has redefined the world as we know it. COVID-19 has pushed the need for technology across all industries from healthcare – manufacturing, communication, ecommerce, services, and the construction sector has been no different.

MEConstructionNews.com | September 2020

12

THE BIG PICTURE

01 UNITED STATES

03 UNITED STATES

Hilti unveils wearable exoskeleton human augmentation device

Bechtel secures executive project management contract for NEOM’s cognitive cities

Construction tools manufacturer Hilti has developed a wearable exoskeleton for workers – a “human augmentation device” that is designed to help commercial contractors, tradesman and management alike tackle health and safety as well as labour shortage challenges.

According to the statement, to create the EXO-O1, the Hilti Group partnered with Ottobock, a global leader in prosthetics, orthotics and exoskeletons.

Hilti is currently testing the new exoskeleton and will be bringing the product to market later this year.

02 UNITED STATES

JLL partners with SGS to certify healthy and safe workspaces JLL has partnered with inspection, verification, testing and certification firm SGS to provide clean and healthier workplaces. The collaboration aims to provide clients with the opportunity to verify cleaning procedures and protocols, a statement said.

The impact of COVID-19 is reshaping how the world thinks about work, with health and safety being the highest priorities.

Data shows that employees want to be back in the office, with a recent JLL survey revealing that 58% of distant workers have missed the office.

NEOM Co has awarded a contract to Bechtel for executive project management work on the development of the primary, base infrastructure for NEOM. It will oversee and create resource-efficient utilities and a highly advanced transport system to connect NEOM’s cognitive cities.

Work will include simultaneous construction in multiple locations requiring extraordinary engineering solutions in challenging terrain, the developer said.

04 UNITED STATES

06 MOROCCO

Laticrete names former Sain-Gobain executive as new CEO

Imkan says mixed-use project in Morocco to be completed by Q3 2022

Laticrete has named former SaintGobain executive Patrick Millot as its new CEO, effective 10 August 2020.

Moving from his position as CEO of Abrasives and Composites Systems at Saint-Gobain, Millot will replace David A. Rothberg, who will continue to serve as chairman of the board for the flooring specialist.

“I am thrilled and honoured by this opportunity! Laticrete is a wonderful success story and a great global company with a leading brand in construction,” remarked Millot, a 24-year industry veteran.

September 2020 | MEConstructionNews.com

05 UNITED KINGDOM

HKA acquires construction dispute specialist Probyn Miers HKA has acquired one of the UK’s leading firms of experts in construction dispute avoidance and resolution. Probyn Miers has offices in both London and Dubai.

Its team of specialists in engineering and construction-related disputes are now part of HKA with immediate effect.

The firm was founded in 1998 and represents clients across a broad range of sectors including commercial, energy, transportation infrastructure, residential and high-rise towers, international airports, hospitality, and other complex building types.

Imkan has said that work is progressing on its Le Carrousel, a mixed-use project located on the waterfront of Morocco’s capital, Rabat.

Phase One of the project is due to be completed by Q3 of 2022.

Imkan added that it had awarded an $82 million construction contract for the first phase to Sogea Maroc, the subsidiary of the French Group Vinci.

Under this deal, the contractor will build the residential areas, seafront promenade including over 40 retail outlets across the coastal development.

THE BIG PICTURE

13

05

02

04 03

01

06 07

08

09

08 EGYPT

07 ALGERIA

JLG delivers four ultraboooms to ENGTP in Algeria Powered access major JLG has announced the delivery of four JLG 1250AJP boom lifts last month to National Enterprise of Large Oil Works (ENGTP) in Algeria.

The delivery follows another one from JLG in July last year, when ENGTP received six articulating booms as part of a national and international call for tenders. In total the company has taken delivery of 10 booms delivered over a period of 12 months.

ENGTP operates a fleet of 28 JLG machines with a variety of working heights. The equipment operates on the contractor’s sites in north and south Algeria.

Egypt’s Elsewedy Electric to build $38.6mn energy project in DR Congo Elsewedy Electric, an integrated energy and infrastructure solutions provider operating in the Middle East and Africa, has announced that one of its units has inked a deal with the Societe Nationale D Electricite (SNEL) to build a 220-15/6.6 kV high voltage distribution substation in the city of Kasumbalesa in DR Congo.

The project will be developed in the province of Haut-Katanga at an investment of $38.6 million, it added. Elsewedy Electric’s scope of work will include EPC for the entire project on a turnkey basis.

09 KUWAIT

Fluor-led JV announces completion of clean fuels project in southern Kuwait Fluor Corporation and its joint venture (JV) partners Daewoo Engineering & Construction and Hyundai Heavy Industries have achieved final provisional turnover of the facilities for Kuwait National Petroleum Company’s (KNPC) Mina Abdullah Package 2 (MAB2) Clean Fuels Project.

According to a statement, the Clean Fuels Program is being delivered on three KNPCowned and operated refineries in Kuwait.

Over 12,000 craft workers are said to have been on-site during peak construction, supported by a JV team.

MEConstructionNews.com | September 2020

14

THE BIG PICTURE

18

10 12 13

11 14

15

16

17

10 BAHRAIN

12 SAUDI ARABIA

Phase Two work on track for Bahrain’s Water Garden development project

KSA’s National Water Company invests $40m in Madinah wastewater project

Bahrain’s Works, Municipalities Affairs and Urban Planning ministry has said that steady progress is being made on the kingdom’s Water Garden development project, with Phase Two work on track.

According to a BNA report, citing the Works, Municipalities Affairs and Urban Planning Minister Essam bin Abdulla Khalaf, construction work on the parking lot and service only buildings have already been completed.

He also called for the conservation of the historic identity of the garden.

September 2020 | MEConstructionNews.com

11 BAHRAIN

JV deal to bring Dubai Aquarium-style attraction to Bahrain’s Marassi Galleria Eagle Hills and Emaar Entertainment have formed a joint venture (JV) to bring an aquarium and underwater zoo to the Marassi Galleria shopping mall in Bahrain.

The shopping mall is taking shape in Marassi Al Bahrain, an urban project

by Eagle Hills as part of a JV with Diyar Al Muharraq, the developer of the Diyar Al Muharraq megaproject.

According to a statement, the Marassi Aquarium and Underwater Zoo is billed as the first of its kind in the kingdom and will span 26,900sqft.

Saudi Arabia’s National Water Company (NWC) has announced the signing of a contract for the implementation of a wastewater project in the Madinah region at an investment of more than $40 million.

In a statement, NWC said that the project will serve the districts in the north and northwest Madinah regions. It will also serve southern districts such as AlRanonaa, Al-Jabrah and Bani Bayadah.

The main pipelines of the project will be 7,775m long, with diameters between 1,200 and 2,200mm, the statement said.

THE BIG PICTURE

15

14 UAE

Dubai Ruler revamps ICD board of directors 13 SAUDI ARABIA

Amaala awards marina services contract to Saudi start-up A contract has been awarded by Amaala for excavation, backfilling, and earthworks to start-up Hasco (Hasan Al-Harbi Corporation). The start-up offers marine logistics services and is based in Duba.

As part of the contract, Hasco has deployed a team of 90 in the Triple Bay Marina area of the megaproject to manage the excavation of the marina basin. The start-up has also overseen the installation of critical infrastructure, including access roads and the construction of on-site offices, following the initial preparation works across the Amaala site.

HH Sheikh Mohammed bin Rashid Al Maktoum, in his capacity as Ruler of Dubai, Vice President and Prime Minister of the UAE, has issued Decree No. 24 of 2020 on the Board of Directors of the Investment Corporation of Dubai.

HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, has been named as Chairman of the Board, and HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum as the Vice Chairman. Other members of the Board include: HH Sheikh Ahmed bin Saeed Al Maktoum, Reem bint Ibrahim Al Hashemy, while Mohammed Ibrahim Al Shaibani will serve as the managing director.

15 UAE

ICD Brookfield Place awarded LEED Platinum rating ICD Brookfield Place, the Dubai-based lifestyle and business destination, has announced that it has been awarded the LEED (Leadership in Energy and Environmental Design) Platinum rating for its sustainability and green building initiatives.

Jointly developed by the Investment Corporation of Dubai (ICD), a governmentowned wealth fund, and Canada’s Brookfield Property Partners at an investment of over $1 billion in Dubai, UAE, the 1.5 million sqft mixed-use development features an office tower and large open civic spaces.

17 INDIA

16 UAE

Azelio and ALEC Energy to build verification project in Abu Dhabi in Q3 2020

Azelio, a Swedish company specialising in thermal energy storage with dispatchable power, has announced that it will install a verification project in Abu Dhabi in Q3 2020, together with Masdar and Khalifa University.

An agreement has been signed with ALEC Energy to set up the project site in Masdar city, Abu Dhabi. Preparation for the energy storage installation is progressing according to plan, with the project reaching an important milestone with a signed agreement with ALEC Energy to prepare and setup the installation site.

GAJ announces handover of Garden Bay project in Lucknow, India Dubai-based Godwin Austen Johnson (GAJ) has announced the handover of its latest project in northern India. The Garden Bay Lucknow is a new township situated on the Sitapur-Hardoi Link Road in Lucknow and comprises 600 villas.

The project offers a tranquil living community that responds to the desire for an inviting, contemplative space, where nature, community and healthy living come together to make a positive contribution to the city. Facilities include a clubhouse and a dedicated community retail space.

18 CHINA

Sany 4,000-tonne crane help execulate Sany’s new 4,000t lattice boom crawler crane, the SCC40000A, executed its first project last month when it lifted the fourth propylene splitter tower into place at a $2.3bn petrochemicals complex in northern China.

The erection of the splitter at China’s first integrated production line for rubber and plastics was successfully accomplished by the SCC40000A as it is “the heaviest construction task” and with a lifting capacity of up to 4,000t and lifting moment of 90,000 tonne-metres, the new crane is a “robust hoisting solution developed

by Sany to support” such projects.

MEConstructionNews.com | September 2020

16

MARKET REPORT

Industry outlook

Maturing KSA industrial and logistics sectors provides new opportunities SAUDI ARABIA

Knight Frank report finds that market fundamentals in a growing sector remain strong, despite short to medium term challenges

S

audi Arabia’s GDP is expected to contract by 6.8% in 2020 on the back of strict lockdown measures, the collapse in oil prices and subsequent reductions in production as part of the OPEC+ deal, where non-oil GDP is expected to decline by 4.0% in 2020, according to initial estimates by the IMF. SECTOR OVERVIEW In the short term, to help the sector deal with the demand shock of COVID-19, the Saudi Industrial

September 2020 | MEConstructionNews.com

Development Fund (SIDF) has announced several initiatives including the rescheduling of loan payments for small and medium enterprises (SMEs) and medical factories. This will make available new financing products for pharmaceutical and medical supplies producers and revolving lines of credit initiatives to finance operating expenses of qualified SIDF SME clients.

The government has identified the industrial and logistics sector as a key component of its economic diversification strategy where the National Industrial Development Logistic Program (NIDLP) looks to position Saudi Arabia as a leading industrial destination and as a global logistics hub for the mining, energy and logistics sectors.

In an attempt to achieve these objectives, the NIDLP program plans to provide a range of essential enablers, including the provision of financing, development of infrastructure, expansion of the implementation of digitisation procedures, enhancing research, innovation and training and raising the efficiency of available cadres.

These long-term initiatives will be supported by the recent improvement of

Saudi Arabia’s soft infrastructure where the ease of doing business ranking has improved from 92nd in 2019 to 62nd in 2020.

SAUDI ARABIA INDUSTRIAL MARKET OVERVIEW The Saudi Arabian industrial and logistics market is divided into two types of industrial developments, first those provided by the Saudi Authority for Industrial Cities and Technology Zones (MODON) and secondly private industrial cities.

MODON currently has 35 industrial cities which are either completed or under development, spanning almost 200 million square metres across Saudi Arabia.

MARKET OUTLOOK In the short run, Saudi Arabia’s industrial and logistics sectors face some considerable headwinds, namely as a result of COVID-19 and on the back of multiple reforms enacted by the Saudi Government. Given these challenging macroeconomic conditions, we expect that rental rates and occupancy levels will soften over the course of 2020.

MARKET REPORT

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GLOBAL GDP AND TRADE VOLUMES (YEAR-ON-YEAR % CHANGE) GDP, CONSTANT PRICE

TRADE VOLUME OF GOODS AND SERVICES

15% 10% 5% 0% -5%

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

-15%

2008

-10%

MODON currently has 35 industrial cities which are either completed or under development, spanning almost 200 million square metres” INDUSTRIAL CITIES – DEVELOPED LAND SUPPLY BREAKDOWN

-2%

5%

-4%

38%

2021

2020

2019

2018

2017

JEDDAH INDUSTRIAL CITIES - DEVELOPED LAND BREAKDOWN BY EACH INDUSTRIAL CITY

Industrial City 1

Industrial City 1

28

105

11%

Existing supply (million square metres)

MODON

2016

2015

JEDDAH INDUSTRIAL CITIES - TOTAL ALLOCATED LAND BREAKDOWN BY EACH INDUSTRIAL CITY

54

62%

-6%

RIYADH INDUSTRIAL CITIES - TOTAL DEVELOPED LAND SUPPLY BY MODON & PRIVATE SECTORS Q1 2020

Total supply (million square metres)

Private

Jeddah

10%

Dammam

0%

Ar-Riyadh

15%

Other Cities

2%

Al-Kharj

20%

Al-Madina

4%

Al-Ahsa

25%

RIYADH INDUSTRIAL CITIES - TOTAL ALLOCATED LAND SUPPLY BY MODON AND PRIVATE SECTOR Q1 2020

Knight Frank Research, Macrobond

SAUDI ARABIA GDP, IMF WEO, ESTIMATE, CONSTANT PRICES (YEAR-ON-YEAR % CHANGE)

Private

27%

Industrial City 2

8%

41%

73%

Industrial City 3

76%

26%

29

Total land (million square metres)

MODON

Industrial City 2

Total land (million square metres)

MODON Oasis

5%

Industrial City 3

24%

MODON Oasis

9%

MEConstructionNews.com | September 2020

18

ANALYSIS

COVID-19

Out of Crisis Comes Opportunity MIDDLE EAST

Bishoy Azmy, CEO of ASGC, shares his views on the impact of the Coronavirus on the industry and the need to embrace change

T

here is a lot of fear and negativity in business right now for obvious reasons. However, I am optimistic about

the future and believe that those who are able to adapt can emerge from this crisis as winners.

Of course, the COVID-19 pandemic is a crisis which had an immediate negative impact, but one has to think from a business perspective how we can take advantage of this. How can we reposition our company, ourselves and strategies to play to our strengths and address what will become the new normal?

We realise that 2020 is hugely impacted by COVID-19 and all of our pre-COVID plans for the year have now been largely shattered. We will emerge from this global pandemic as a different player. Some people will fall, some people will evolve.

As Charles Darwin noted: “It is not the strongest of the species that survives, nor

September 2020 | MEConstructionNews.com

Addressing the new normal Companies need to reposition themselves to play to strengths to address what will become the new normal post COVID-19.

2021

Construction will see renewed optimism in 2021

the most intelligent that survives. It is the one that is most adaptable to change.�

Change is not a new normal. Change is an inevitable part of life. We all regularly face different kinds of crises and the mindset of the individual, and the mindset of an organization, should be adaptable and flexible enough to accommodate change.

If we are able to accommodate change, we will be able to adapt to the impact of COVID-19 and stay resilient. If we look at the stock market and global economies right now, we see how technology companies and progressive businesses with strong leadership are actually doing very well because they have a culture of embracing and even creating change. On the other hand, traditional businesses in declining industries are suffering.

ANALYSIS

If we consider the construction industry, COVID-19 is simply accelerating problems and issues that the industry was already facing. The industry, whether in the local market or globally, was already dealing with low margins, uncomfortable health and safety standards, poor procurement and contractual arrangements between stakeholders, very high risk, and, most importantly, affordability issues.

The affordability of our product is an issue. Globally, there is a huge gap between what most people can afford to pay for the product of construction (whether it is a house, apartment, office or any other development) and the actual cost to buy. The cost of our product as an industry is increasing but the income of most people in the world is not rising at the same pace.

Companies with high leverage will find it even more difficult to cope with these challenges because of the increased pressures it brings. Even where a company is generally in good health, debt can cause suffocation.

Businesses with low levels of debt will be best placed to adapt in times of crisis.

THE NEED TO ADAPT COVID-19 is simply accelerating the impact of the issues in our industry and we need to find solutions.

Whether these solutions now require investment in technology such as 3D printing, more efficient ways of thinking, different ways of procuring or the sourcing of cheaper and more environmentally friendly materials, the underlying issues challenging the industry have not changed. The pandemic has not changed our world – it has simply expedited the need to find solutions to pre-existing challenges.

Companies that can find solutions to the challenges quickly are going to emerge as winners out of the COVID-19 situation and we are focused on this outcome.

We are trying to adapt, evolve, streamline, cut costs, collaborate more with our clients. We are trying to work with our clients as an integrated part of the delivery process to lower the cost of the end product.

We are trying to increase our use of technology and reduce reliance

19

2020 will be a year of repositioning and challenging financial reporting.

However, our industry can use the crisis to address its issues, become more agile and in tune with the changing needs of the product we deliver” Accelerated impact COVID-19 has accelerated the impact of preexisting issues in the construction industry, and solutions need to be found, Azmy says.

Embrace change Outdated construction practices, working methods and hours need to be questioned and the industry encouraged to approach things differently, Azmy says.

on manual work in the construction process, automating where possible so that we have a factory line rather than unique prototypes with their own learning cycles which we cannot benefit from on the next project.

We are embracing the concept of modular construction, being more flexible in the way we work to allow creativity in the workforce and our internal supply chain. Outdated construction practices, working methods, working hours, dress codes – all of these are now being questioned. Everyone in our business should be encouraged to approach things differently and embrace change. The end results are what is important.

REASONS FOR OPTIMISM It is clear that 2020 will be difficult year for business but I am very optimistic for 2021 and beyond. 2020 will be a year of repositioning and challenging financial reporting. However, our industry can use the crisis to address its issues, become more agile, financially efficient and in tune with the changing needs of the product we deliver to our customers.

We are fortunate that our business is not highly leveraged and has an agile and dedicated team which is willing to think outside of the box. We are focused on adapting to the new normal and I am actually very optimistic about the remainder of 2020 and beyond.

MEConstructionNews.com | September 2020

20

September 2020 | MEConstructionNews.com

IN PROFILE

21

Ian Williamson

“Opportunities will be given to those who meet our high environmental standards. It was resisted initially, but people eventually accept that we’re serious about maintaining those standards” BIG PROJECT ME SPEAKS TO IAN WILLIAMSON, CHIEF PROJECT DELIVERY OFFICER AT THE RED SEA DEVELOPMENT COMPANY, ABOUT HOW IT IS USING OFF-SITE AND MODULAR TECHNOLOGY TO ANSWER ITS CHALLENGES AROUND MAINTAINING HIGH-QUALITY STANDARDS AND MEETING DELIVERY TIMELINES MEConstructionNews.com | September 2020

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IN PROFILE

ituated on a gigantic 28,000 square kilometres site, The Red Sea Project in Saudi Arabia is an ecotourism and hospitality project of immense scale and natural beauty. Featuring some of the world’s best coral reefs and mangrove forested islands, along with 200 kilometres of nearly uninhabited scenic coastline and more than 100 mountains, the countrysized ecotourism and hospitality-focused destination is one of a type in the world.

Developed by The Red Sea Development Company (TRSDC), on behalf of the Saudi Arabian government, the project is part of the Kingdom’s Vision 2030 and will create more than 35,000 new, direct, jobs; along with a further 35,000 indirect jobs in the wider community through the creation of opportunities for local businesses, entrepreneurs and supporting industries, to the scale of nearly $6 billion.

The Red Sea Project is one of three similarly sized giga-projects announced

by HRH Crown Prince Mohammed

Opening new doors Saudi Arabia hopes that the giga-projects will open up new areas of economic activity, create jobs and cultivate entrepreneurial activity.

$6bn

Amount the project will add to the KSA economy

bin Salman bin Abdulaziz Al-Saud in 2017. Collectively, these giga-projects will not only open up new areas of economic activity, create jobs and cultivate entrepreneurial activity, but they will also serve as cultural and societal benchmarks for the Kingdom as it enters into an ambitious phase of its evolution as a country on the world stage.

Work on the project is now well underway, with the developer awarding a raft of contracts in recent months.

Furthermore, work has begun on an important pilot project for TRSDC, where the production of the residential units for the Coastal Village – a sprawling complex intended to house the future

workers operating the destination – are being built off-site by Saudi Amana Contracting and their subsidiary DuBox. Part of a larger design scheme and home to around 14,000 employees and their families, these residential apartments will serve as a test case for The Red Sea Project, where a substantial portion of the building or installation of hospitality and private residential units will be built and assembled in a factory located away from the project site, explains Ian Williamson, chief project delivery officer for TRSDC, during an exclusive interview with Big Project ME. “In terms of progress, it’s fair to say that we’ve gotten off to a great start.

We had our masterplan signed off by our board and HRH in November 2018.

Since then, it’s been about taking the masterplan forward through the design stage, and in parallel, getting on with construction. We’re constructing in a place that’s remote – it’s 500 kilometres north of Jeddah, it’s about two hours drive north from Yanbu, and there’s nothing there for us to build on. There’s a southto-north highway called Highway 5 that runs along that coastline, but there’s no power, no water – nothing available to us to get this development off the ground.

“So, we’ve built the construction village to host the first 10,000 construction workers. We’re building road networks – we’ve already built around 80 kilometres of road infrastructure. We’re also on the first phase of works on five

We’ve built the construction village to host the first 10,000 construction workers. We’ve already built around 80 kilometres of road infrastructure.

We’re also on the first phase of works on five islands of the 92 in the archipelago” September 2020 | MEConstructionNews.com

IN PROFILE

islands of the 92 in the archipelago. In addition to the airport and the marina, there are two major inland sites, and (these have) the usual infrastructure you need to service hotels and private residences,” Williamson says.

“Quite recently, we’ve awarded our largest value contract to date for airside infrastructure works for the destination’s airport. It’s an international airport and we expect people to generally arrive from regional hubs such as Jeddah, Riyadh and Dubai. It’s still to be validated exactly which airlines will fly in and from where, but it’s a future proof airport, with a 3.7 kilometre-long, Code F runway. This means it will be able to take the largest civilian aircraft. It’s also got seaplane runways, helicopters and all the usual facilities you’d expect from a major international airport that can (eventually) accommodate one million passengers a

year (by 2030). In the first phase of the project, it will probably be 200,000 to 300,000 passengers a year,” he adds.

The airport will be key for the success of the project, with 96% of guests expected to arrive by air, Williamson estimates. While there’s sure to be traffic coming from places like Jeddah and NEOM, the bulk of visitors will be flying into the remote location, both from within KSA and from the GCC. With the first hotels and resorts set to welcome guests by 2022, completing the airport on time is vital, Williamson asserts. He also points out that a lot of enabling work has been carried for the projects in phase one; with the Coastal Village progressing along particularly well due to its utilisation of off-site construction methodologies.

“We have a Coastal Village that will house close to 14,000 permanent residents

1m

Number of passengers the airport will be able to handle by 2030

Careful planning All construction work on The Red Sea Project is being carried out with the sensitive local environment in mind.

23

of The Red Sea Project. These are the hospitality workers and so on. They will have schools, entertainment, and so on, within it. In any other language, it’s considered to be a small town, but we’re using the euphemism ‘Costal Village’ for it.

“We’ve already awarded the first residential apartments, which has been well publicised, to Saudi Amana Contracting. I’ve just come back from the site and they’re already going up to the second level of the 10 apartment buildings. That’s the beauty of modular construction – there are very few people on site and here we are, assembling eight blocks a day, which is eight rooms.

The corridors are precast, the staircases are precast, the lift shafts are precast, it’s all made off-site, brought in on trucks and craned into position.

“You can put up an entire floor in a day. All 10 ground floors are up, and

MEConstructionNews.com | September 2020

24

IN PROFILE

now the first floors are going up. By the end of the year, we’ll have 280 rooms which we’ll take the privilege of using as The Red Sea Development Company, during the course of the construction process. But they’re very much part of the first part of the project; they’ll be for the community who will live here.”

Williamson adds that a design and build contract has also been awarded to Al Bawani for villas at the Coastal Village, while other residential accommodation projects are also being put out into the market.

“We’ve got townhouses, villas, apartment blocks, and now we’re in the market for two other types of residential accommodations – one we’re calling studio apartments, which will appeal to

Project gateway The airport is expected to connect the project to regional hubs across the GCC, as well as major cities within the Kingdom, such as Riyadh and Jeddah.

280

Number of rooms that will be ready by yearend

September 2020 | MEConstructionNews.com

single workers and will have self-catering facilities inside. Then we’ve got shared facilities called Z-types, where a level of workforce will be sharing rooms. These are 48 blocks, and it is another $186 million to $213 million contract, with all the other pieces we’ve assembled around it.

“The Coastal Village is really welladvanced. It has been well-designed and now we’re heavily involved in the procurement and selection activity, which is creating quite a buzz in the industry.

It’s going to be interesting to see whether off-site manufacturing wins out over pre-cast solutions or casting in situ.”

It’s importance to the overall future of The Red Sea Project is critical, says Williamson, pointing out that when the original forecast was done for the

gigaproject – with a delivery date for 2022 to 2023 for Phase One, a workforce of 55,000 people was estimated. Not only would those numbers put undue pressure on the sensitive environment, but it would also make it a challenge for the project team to control standards and quality across the site.

“That level of footfall coming onto the islands, and getting into the coastal areas, is likely to damage the environment,” says Williamson.

“We had to find mechanisms to reduce that down. Our current forecast for the workforce is 28,000 to 30,000, so we’ve significantly reduced the number of people we want on site, so as to control conditions and quality, as well as health and safety.

IN PROFILE

We need people who understand the vision and buy into the longterm journey. This is a Vision 2030 deliverable that’s worth tens of billions of dollars, so we need people who are prepared to come in and invest” “You’ve got a controlled environment for the workforce, but you’ve also got a controlled environment for plants, machinery and equipment.

Otherwise, these are just laid down on a project site, with all the health and safety, and environmental risks that are associated with that.

“We can control the way it’s manufactured, and it’s easier to send a smaller number of people to the site and inspect it. These are pre-finished, volumetric concrete units with everything in – the tiling on the walls, the kitchens and bathrooms are fitted out. It is an entire room – or series of rooms – that are already completed, with very little on-site or finishing works to do.

“When you go on-site, what strikes you is how few contractors there are on site. It is a tenth of what you in a normal cast in situ situation. There’s no sprawling laydown area or hazardous materials. You can minimise the risk of people coming into contact with large plants and machinery, while also protecting the site from pedestrians and vehicles. There’s a whole feeling of cleanliness on site that’s remarkably different from other construction sites,” he outlines, adding that the reduction in waste materials and overall footfall of contracting activity is incredibly low.

However, the real challenge will be extrapolating this technology to the luxury hotels and resorts planned for the gigaproject, Williamson states, adding that the

Coast Village will serve as a test-bed for proving that a modular, off-site approach can work on these types of projects.

“Our luxury hotels are one of a kind.

Every hotel is unique, and while some of the designs have been released into the market, there will slowly be more of a reveal about where we’re going to go on the design side. But we do have three hotels on outer islands and they’re very unique products, with two of them being timber-based and one is one of a kind. We’ve already released the package to market to off-site manufacture these hotels and these are incredibly challenging (packages).

They’ve never been built this way before.

Perfect partners Williamson says that it is crucial that TRSDC chooses the right partners to develop the project due to the environmental and sustainability concerns.

30,000 Current forecast for the size of the workforce

25

“One may be an entire monocoque structure, which will come fully fitted out. It’s an over water villa and we’ll have a separate subcontractor make ready the substructure, the piling into the seabed, to build a platform that is ready to receive infrastructure servicing.

These will then be put into place by barge cranes, so it’ll be a pretty complex exercise trying to put them into position in a coral-rich marine environment.

“The only way we can prove this concept is to have each of the bidding teams build a sixth of these villas as part of the bidding process. We thought about making a whole one, but that would take too long, and would probably be unnecessary. This will enable us to make an appropriate selection, about who’d be a good partner for this project,” Williamson states.

He adds that the timber-based hotels will pose an equally difficult challenge as they will probably be too big in scale to be able to manoeuvre them into place in their delicate environments.

The challenge here would be how to make them sub-assemblies that would be manageable in such a complex marine environment, while minimising the number of people required on site to assemble them, he points out.

“We’re giving the market quite a challenge, because at that quality level, I don’t think it’s been done before.

We’ve seen hotels and companies further afield do great bathroom

MEConstructionNews.com | September 2020

26

IN PROFILE

products, and we’re using some of that technology in the Coastal Village.

“Saudi Amana have got subcontractors bringing in whole bathroom units into these residential units, but to do it on a scale of what you’d expect to see in a fivestar luxury hotel is unproven territory.

“This is very much a consortia coming together and bringing in different expertise; for example, it could even be ship building technology that is used to fitout a yacht being applied to an overwater villa, allied with somebody who can bend and fabricate large steel structures or other composite structures.

“TRSDC is pushing the market to form these consortia and join forces, because, ultimately, we need fully assembled, fully fitted, ready to move into units brought to site. It’s an exciting time for us,” he adds, highlighting an ongoing project with Foster+Partners, which will see 11 hotels being designed with a high degree of modularity, while still maintaining distinctive elements and features for each of them.

“I don’t think I’ve seen offsite manufacturing of this variety, scale and volume. Can the industry rise to the challenge?”

It is due to these many challenges that Williamson is keen to stress that TRSDC will not just choose a partner on the basis of them having the lowest bid.

He asserts that the developer is not looking for suppliers or contractors who just want to be on one single project, but rather want companies who are willing and able to see the bigger picture.

Encouraging collaboration Ian Williamson says that TRSDC is working to bring global players together with Saudi companies to help deliver the giga-project.

2030

The project is a key part of Vision 2030

September 2020 | MEConstructionNews.com

“We need people who understand the vision and buy into the longterm journey. This is a Vision 2030 deliverable that’s worth tens of billions of dollars, so we need people who are prepared to come in and invest.

“I’ll give you Saudi Amana as an example, while they’re a UAE-based entity, they have a Saudi organisation that is very much part of the group.

They’ve chosen to come and set up a manufacturing facility in Rabigh, on the West Coast, which is initially for The Red Sea Project, but longer term, aims to serve other giga-projects in the Kingdom.

We want people who have that vision of a long-term partnership relationship.

“They’ll still have to bid, compete and successfully secure projects, don’t

get me wrong – opportunities will be given to those who meet our high environmental standards, and the bar that we have set for HSE, which is much higher than GCC standards in the past.

That’s taken a while for companies to come in and understand. It was resisted initially, but people eventually accept that we’re serious about maintaining those standards,” Williamson asserts strongly, explaining that there are multiple environmental checks and balances in place across all levels of the project.

“There are no shortcuts, no cutting corners. We need people who have the right accreditation as an organisation, the ISO certifications and the thirdparty validations and so on. We have visited the major players in the market and we hopefully, we have briefed people well and brought that inspiration and passion to them.

“We’ve encouraged collaboration and the coming together of global players with Saudi companies, which is absolutely necessary for a project of this scale, quality, standard and timeline that we’re trying to deliver,” he states in conclusion, starkly illustrating the massive opportunity available to the Kingdom’s construction industry.

Discover more YOU CAN CHECK OUT OUR FULL EXPERT VOICE INTERVIEW WITH IAN WILLIAMSON AT: WWW.MECONSTRUCTIONNEWS. COM/LIVE-VIDEOS

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July-August2020 September 2020| |MEConstructionNews.com MEConstructionNews.com

PROJECT PROFILE

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Riviera PROJECT NAME: Riviera PROJECT DEVELOPER: Azizi Developments TOTAL BUILT-UP AREA: 375,541 sqm TOTAL NUMBER OF UNITS: 16,000 units in 4 phases TOTAL NUMBER OF BUILDINGS: 71 PROJECT COMPLETION DATE: Q1 – Q2 2021 (Phases 1 – 3)

A Serene Escape BIG PROJECT ME PROFILES THE ONGOING DELIVERY OF AZIZI DEVELOPMENT’S RIVIERA MEGAPROJECT IN MOHAMMED BIN RASHID CITY IN DUBAI, AND FINDS OUT HOW THE FRENCH MEDITERRANEANINSPIRED COMMUNITY WILL PROVIDE A DIFFERENT OFFERING TO RESIDENTS MEConstructionNews.com MEConstructionNews.com| |July-August September 2020

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PROJECT PROFILE

n August this year, Azizi Developments announced that it plans to invest more than $952.8 million on new projects in Dubai, with 45 buildings to be constructed over the next two to three years in various high-demand areas across the city, despite the ramifications of the COVID-19 global crisis.

In a statement, the Dubai-based developer says that the investment will go into developing 14 and 22 buildings in Riviera Phases Three and Four respectively, its three Avenue buildings in MBR City, two projects in Dubai Healthcare City, and four projects in Al Furjan.

Azizi says that announcement comes in the wake of it having sold more than 80% of its current ongoing projects and inventory, and that demand is expected to surge, especially in the areas mentioned, which are some of the most sought-after residential destinations in the UAE.

The construction of the Al Furjan and Dubai Healthcare City projects, which will feature around 645 and 973 units respectively, Riviera’s Phase 3, comprising approximately 3,700 units, Phase 4, with around 5,400 units, and the 423 Avenue units, will commence between August and December of this year.

“Our launches are based on demand, which has been exceptional in MBR City, Dubai Healthcare City and Al Furjan. Our current stock across these up-and-coming locations is nearly sold out, which is why we are now planning further developments accordingly. The new communities will be unique in the lifestyles they grant residents – they are a new type of product, and we will be reaching out to new markets with them,” says Farhad Azizi, CEO of Azizi Developments.

“The $952.8 million project will be spread out across several years, with more than 11,000 homes being developed.

We are confident that this investment in Dubai, the most promising, forwardthinking and growth-inclined city in the world, is well placed, and look forward to further catalysing the emirate’s vision and development”, he adds.

Chief amongst these projects is the Riviera development in MBR City, which is seeing steady progress being made, as the developer announced that nearly 60% of construction and infrastructure work was completed in Phase One, in June 2020. At the same time, work on Phase Two stands at 37%, while Phase Three is at 22%.

September 2020 | MEConstructionNews.com

60%

Percentage of work completed on Phase One Mediterranean inspiration The development aims to replicate the sensibility and feel of living on the French Mediterranean coast.

At the same time, the master developer is making substantial progress in the building of roads, sidewalks, drainage and water systems, as well as in backfilling and laying of telephone line cables, the developer tells Big Project ME. Located at the heart of MBR City, the project consists of 71 mid-rise buildings, with 16,000 residences in the midst of the city’s business, leisure and retail hubs. Phase One will consist of 3,589 residences across 18 towers, consisting of 2,461 studios, 935 one-bedroom, 111 two-bedroom, and 82 three-bedroom units, most of which are projected to be completed in 2020. It has a total built-up area of 375,541 sqm and a total gross floor area of 180,854 sqm.

“Azizi Riviera draws its inspiration from the French Mediterranean lifestyle, which is not merely about architectural art, but about a certain ‘joie de vivre’ – an enjoyment of life, an exultation of spirit. The project stands out for its mega-integrated retail boulevard of more than 1.6 kilometres in length that features a multitude of F&B, lifestyle, and convenience options,” the developer says.

“Located on the banks of the Dubai Creek, a vibrant hub with a canal walk of over 2.6 kilometres, it is a premium waterfront lifestyle offering complemented by equestrian and golfing facilities in its vicinity. Les Jardins, a vast lush green social space that spans across all of Riviera, is also easily accessible from the development.”

31

Azizi adds that it has sold more than 95% of the residences in the first phase of Riviera, recording sales of more than $582 million. It puts this investor response down to the project’s central and strategic location, as well as its array of amenities and lifestyle options.

Central to the development’s appeal is its location in MBR City, which is fast gaining a reputation as one of the most sought-after destinations in Dubai. In 2019, a Property Monitor report revealed that MBR City experienced the highest sales volume of residential apartments in Dubai, with 3,361 units sold, surpassing all other major areas and making it the most popular residential destination in the city.

(In order) to ensure adherence to our high-quality standards, we have had to replace some of the contractors.

However, we are now on track, as we now have the right combination of contractors and funding in place”

Moreover, the report also unveiled other noteworthy data, such as MBR City’s high volume of move-in and low volume of move-out requests, with 1,392 residents having moved in to the highly strategic, central area. This can be attributed to its direct connectivity to major retail, business and leisure hubs of the city, as well as its outstanding infrastructure.

“Furthermore, Property Monitor also highlights that MBR City ranked 4th in the sales price category for apartments, right after City Walk, Cultural Village Apartments and Downtown Burj Khalifa.

The high residential prices in MBR City are a testament to its popularity, with demand and supply driving prices up.

Locational appeal Azizi says the investor response to the project is due to its appealing location, as we as its range of amenities and lifestyle options.

95%

Percentage of residences sold in the first phase

MBR City was also ranked among the top 10 prime locations in terms of rental yields, granting property owners who invest in the area strong returns,” says Azizi in an email interview with Big Project ME. “Meydan is the visionary concept of His Highness Sheikh Mohammed bin Rashid al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai. Since its inaugural opening in 2010, Meydan has attracted the attention of the world. MBR City is a central, yet serene escape within the city. It is host to a vibrant canal, vast and beautifully landscaped parklands, winding walkways, large open spaces and breath-taking architecture. Riviera offers a tranquil lifestyle, while also immersing residents in convenience and connectivity. We see it as the perfect fit for our premium, French Mediterraneaninspired waterfront community.”

With construction work progressing at a rapid pace, Azizi says that the construction schedule for the massive project is developed in tandem with the contractors and its inhouse engineering department.

“Through our meticulous and experienced engineering department, we work closely with our contractors to ensure that the construction schedule and completion dates are announced as realistically as possible, and to ensure that they develop projects that reflect high standards of quality and aesthetics, and that are delivered according to agreed timeframe.”.

MEConstructionNews.com | September 2020

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“We have appointed several contractors for this megaproject, including Progress Contracting, Al Shamandi Contracting, Zahrat Al Safa, Chirag Contracting and Prestige Contracting. These carefully selected appointments underline our focus on working with best-in-class contractors to develop our projects to the highest standards of quality and aesthetics.

“These firms bring strong experience in undertaking megadevelopments, ensuring that standards meet and surpass investors aspirations.

“We select only the most reliable contractors, with proven track records.

We also have a very strong design and engineering department that ensures that our contractors perform as agreed and deliver on time,” Azizi asserts to Big Project ME. The developer adds that it has an inhouse dedicated quality control department that is utilised to assess the quality of work performed by its contractors.

It explains that quality is a matter of ensuring that delivery promises are kept, with units handed over on time and without default, in a seamless manner and in line with what their customers expect.

“We have a lot of pride in our work and are taking concrete measures to ensure our quality throughout the cycle of purchasing land, designing and engineering, project management and project delivery,” the developer says.

The right partners Azizi says that it has appointed several contractors on this project, carefully selecting those companies that meet its requirements.

6,000

Number of workers operating on the Riviera site

September 2020 | MEConstructionNews.com

As a sizeable megaproject that is planned to comprise of approximately 16,000 units upon completion of all four phases, constructing Riviera comes with sizeable challenges. Due to this, contractors involved in the project have to be able to be able to meet the demands and challenges put in front of them. “(In order) to ensure adherence to our high-quality standards, we have had to replace some of the contractors. However, we are now on track and projects will be delivered as planned, as we now have the right combination of contractors and funding in place. Optimising the portfolio and construction procedures of developments is a common practice

in the real estate industry, especially in challenging times,” the developer says.

With more than 6,000 workers onsite, working 24-hours a day, keeping the labour force safe has been a crucial priority for Azizi and its project team, especially as the COVID-19 crisis continues to impact the region’s operations and economies.

Despite the global situation that unfolded in recent months, Azizi says that its developments have continued to progress swiftly, due to construction having remained one of the very few vital, fully operational sectors throughout the challenging period.

As such, the developer says that it

We are limiting new launches. This, however, is not due to COVID-19 or other market conditions – rather, it is due to the extensive amount of developments that are already in our pipeline and that we are focusing on delivering”

PROJECT PROFILE

put in place stringent HSE measures to make sure labourers and project team members were protected against the coronavirus threat.

“We have taken several steps in response to the global outbreak of COVID-19, in line with safety and healthcare measures being executed by the government and recommendations being given by local and international health authorities,” Azizi relates. “Our preventative efforts began in February, when we installed hand sanitising stations and commenced the regular disinfection of our offices and communities, disseminated DHA-validated, educational information on how to practice proper hygiene to all of our stakeholders, and began imposing minimal contact and self-quarantining policies.

“We have also implemented strict social distancing measures at our construction sites, with buses only carrying a third of their capacity, workers being scheduled in such a way that not more than two work together in the same room or space, and rest times being distributed throughout the day to prevent large groups from gathering, for example.

“Furthermore, through our dedicated Quality Control and Quality Assurance (QC & QA) department and frequent communication via our engineering department’s project managers, we ensure that all of our contractors abide by our strict health and safety protocols.

We make sure that our workforce

3,000 Targeted number of units by end of 2020

Achieving timelines Despite the impact of the COVID-19 pandemic, Azizi says that it is confident about delivering the proejct on time.

is being given appropriate Personal Protective Equipment (PPE) such as face masks, gloves, overalls and sanitisation products, and carefully monitor their use of it. Our contractors were also asked to frequently test workers’ temperatures, before every shift.

“Moreover, we have provided our office staff with the necessary tools and systems that allow them to work remotely.

Staff were given access to all of the firm’s applications and servers, allowing business to be conducted as usual.”

In addition, procurement has been carefully planned by the developer and its project stakeholders, with the majority of construction materials sourced from local rather than international suppliers.

Those that were sourced from premium European suppliers were procured and received prior to the pandemic outbreak, it adds. Thus, this ensures that the project has not had to face supply issues at all during the pandemic.

Despite the global situation that has unfolded in recent months, Azizi says that its development portfolio continues to progress swiftly, and as such, it remains confident about achieving its project completion timelines and completing its target of delivering approximately 3,000 units by the end of 2020.

“We are limiting new launches in the short to mid-term future. This, however, is not due to COVID-19 or other market conditions – rather, it is due to the extensive amount of developments

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that are already in our pipeline and that we are focusing on delivering,” the developer reveals to Big Project ME. “Beyond 2023, up until 2025, we are planning to launch and deliver another 100+ projects, worth several billion US dollars, through our strategic partnerships with Dubai’s key master developers, which grant us an extensive land bank that we can choose to acquire and develop. This is once the oversupply across Dubai is reigned in.

“Therefore, we are currently focusing on the delivery of quality projects that add value to the market, distinguished by their excellent accessibility, premium amenities and outstanding build quality, rather than on launches and sales.

“With the vast volume of impactful initiatives, policies and regulations the UAE government has introduced to pave the way for a resurgence, and its solid macro fundamentals and world-leading tourism and business environment, we are confident that Dubai will be one of the first markets worldwide to see a very pronounced rebound.

“With the UAE real estate sector embarking on a path of growth as we speak, and with the economy and businesses worldwide beginning to open up, we anticipate a strong uptick in demand and sales that will become apparent by Q4 of 2020 – this is when we believe prepandemic levels will be reached, and then exceeded,” it concludes.

MEConstructionNews.com | September 2020

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COMMENT

Industry insight

AMY HODGETTS OASYS

Why Engineers Must Always Consider HumanInduced Vibration

H

uman induced vibration, or more accurately vibrations caused by human footfall, often conjure images of Millennium Bridge-style swaying or collapsing buildings. But in reality, the ‘damage’ caused by human induced vibrations is less likely to ruin a structure and more likely to cause discomfort in people! Though not as dramatic as a structural failure, any good engineer wants to make sure the people using their structures, be it bridges or buildings or anything in between, can do so safely and comfortably.

This is why human induced vibration must be considered within the design process.

RESONANCE VS IMPULSE There are two ways that human-induced vibrations affect structures: resonant, and impulse or transient response.

Put simply, resonance occurs when Object A vibrates at the same natural frequency as Object B. Object B resonates with this and begins to vibrate too. Think singing to break a wine glass! Although the person singing isn’t touching the glass, the vibrations of their voice are resonating with the glass’s natural frequency, causing this vibration

September 2020 | MEConstructionNews.com

to get stronger and stronger and eventually, break the glass. In the case of a structure, resonance occurs when the pedestrian’s feet land in time with the vibration.

On the other hand, impulse or transient vibration responses can be a problem on structures where its natural frequencies are too high for resonance to occur, such as where the structure is light or stiff. Here the discomfort is caused by the initial “bounce” of the structure caused by the footstep and is a concern on light or stiff structures.

Engineers must, of course, design to reduce the vibration effects caused by either impulse or resonance.

POTENTIAL IMPACTS FROM HUMAN INDUCED VIBRATION Human induced vibration can lead to a number of effects upon the structure and its users. These include: Interfering with sensitive equipment: Depending on the building’s purpose, what it houses can be affected by the vibrations of people using the building. Universities and laboratories, for example, may have sensitive equipment whose accuracy and

According to research, vibrations in buildings and structures can cause depression and even motion sickness in inhabitants.

It has been argued that modern efficient designs featuring thinner floor slabs and wider spacing in column design mean that these new builds are not as effective at dampening vibrations as older buildings are”

performance could be damaged by vibrations. Even in ordinary offices the footfall vibration can wobble computer screens, upsetting the workers.

Swaying bridges: One of the most famous examples of human-induced resonance impacting a structure occurred with the Millennium Bridge.

As people walked across the bridge, the footsteps caused the bridge to sway, and everybody had to walk in time with the sway because it was difficult not to.

Thankfully, this feedback can only occur with horizontal vibrations so building floors are safe from it, but footbridges need careful checking to prevent it.

Human discomfort: According to research, vibrations in buildings and structures can cause depression and even motion sickness in inhabitants.

Tall buildings sway in the wind and footsteps can be felt, even subconsciously by the occupants. It has been argued that modern efficient designs featuring thinner floor slabs and wider spacing in column design mean that these new builds are not as effective at dampening vibrations as older buildings are.

Jeopardising structural integrity: The build-up of constant vibrations on a structure can, eventually, lead to structural integrity being compromised. A worse-case scenario would be the complete collapse of the structure and is the reason some bridges insist that marching troops break step before crossing. Crowds jumping in time to music or in response to a goal in a stadium are also dynamic loads that might damage an under-designed structure.

HOW TO AVOID IT As mentioned, modern designs that favour thinner slabs and wider column spacing are particularly susceptible to all forms of vibration, human-induced or otherwise, but short spans can also suffer due to their low mass. Using sophisticated structural design and analysis software is an effective method for engineers to test for and mitigate footfall and other vibrations at the design stage.

Amy Hodgetts is a content writer on behalf of Oasys, a leading commercial developer of engineering software.

COMMENT

SAMANTHA ROWLES SERCO MIDDLE EAST

The Benefits of Using One Operator to Consult and Deliver

W

hen looking for impactful and efficient change, you might consider seeking out the services of a consultant to ensure you hit the goals you’ve set for yourself. They’ll come on board, review what you’d like to achieve and share with you the processes and activities that will get you there. But therein lies a flaw – you need yet another company to come in and actually deliver it for you. Consultants are typically a hands-off, theoretical entity that can set the stage for what you’d like to achieve and potentially help you find a partner who can deliver it. But their ideas are often generic in ambition and lacking in practical application to achieve successful execution.

This inherently creates further problems when you eventually find an operator brave enough to stake their reputation on the delivery of these plans, often joining the process too late and subsequently, at a disadvantage.

The nature of consultancy work often overpromises as there isn’t a commitment to execute delivery and the provider, inturn, commits to delivering a solution that may be beyond their capabilities. With so many pitfalls, it can seem daunting to achieve your vision in a way that is succinct, efficient and most importantly, costeffective. But there is a solution: using a single provider to both consult and deliver.

In the post-COVID world, clients are looking to drive cost-savings, whilst maintaining the same levels of quality and customer experience. Innovation and changing the way ‘things have always been done’ whilst delivering certainty in cost savings but maintaining quality and experience is key.

By outsourcing to one company, a huge amount of risk and complexity is mitigated.

The unification created by aligning the design of service with its delivery means that solutions are realistic, tangible and completely deliverable. A sole provider will not set themselves up for failure, nor will they load-up their consultative piece of work with unachievable goals and promises, leading to a sub-par, disappointing end point. The lack of a requirement to tender for a second provider further along the process strengthens this unification, as the deliverability of the solution is completely controlled in-house by one party, with no fragmentation of accountability and responsibility. Accountability is in fact strengthened as there is no separate consultant party that can walk away at the end of their commitment, leaving the service provider to flounder during an undeliverable

By outsourcing to one company, a huge amount of risk and complexity is mitigated.

The unification created by aligning the design of service with its delivery means that solutions are realistic, tangible and completely deliverable.

A sole provider will not load-up their consultative piece of work with unachievable goals and promises”

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solution. In addition, this reduction in the number of involved parties can often result in a solution that is cheaper than the market can offer through separate parties.

There’s no clearer example of where this can work than in the digital asset management space.

Rather than the traditional approach of using one company to procure and implement the system and another company to deliver and manage the system, a singlesource approach can instead produce much more effective asset lifecycle management and asset performance results.

Moreover, the integrity of data (and the value creation) is strengthened by reducing the number of parties across the supply chain.

By using a single provider, that is technology agnostic to the different systems on the market, who can procure, implement, manage and maintain the optimum solution to meet the current and future needs; clients can expect a more progressive approach of continuous improvement where maintenance is seen as an investment, and not an expense, as clients have greater transparency and accuracy on future capex and opex decision making in a way that truly reflects the condition of their facilities.

Companies that are already moving toward this combination of consultation and delivery are honing their go-to-market strategy by enhancing their own internal capabilities, meaning they can offer clients a larger package of services under one, cost-effective approach. Procurement becomes streamlined and implementation becomes faster allowing clients to realise benefits sooner.

Serco is leading the way by consolidating our broad capabilities into packaged solutions that can be refined to each client’s exact requirement; and continually adapting it proactively to meet ever changing market needs post-COVID. By building this trusted relationship between client and consultant-provider, clients can save money, enhance services and set realistic, achievable goals in their strategies.

Above all, the centralisation of accountability means that the company enlisted to provide the service can be collaborated with as a true partner, working together with the client to manage budgets and to deliver solely on one goal with fewer roadblocks to success.

Samantha Rowles, Growth Operations and Enablement Director, Serco Middle East.

MEConstructionNews.com | September 2020

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TENDERS

Middle East tenders UAE INFRASTRUCTURE

Al Riffa Water Transmission Network BUDGET $65 million TERRITORY Al Riffa, Ras Al Khaimah CLIENT Federal Electricity & Water Authority DESCRIPTION The project’s scope of work involves the installation of water transmission network located in Al Riffa, Ras Al Khaimah.

The project work includes laying of 90.8 kilometers DI transmission pipeline, installation of pumps, water tunnel and valve chambers.

COMPLETION 30/03/23 MIXED-USE

Mixed Use Buildings at Deira Waterfront (Plot No. 14) BUDGET $155 million TERRITORY Deira Waterfront, Dubai CLIENT Ithra Dubai DESCRIPTION The project’s scope of work consists of 5 residential and commercial buildings located at Deira Waterfront, Dubai. The project also includes residential units, office space, meeting rooms, conference rooms, installation of elevators, safety security systems, car parking and associated facilities.

COMPLETION 31/05/23 INFRASTRUCTURE

400kV Substation & Modification Works (N-16480) BUDGET $50 million TERRITORY North Emirates CLIENT Abu Dhabi Transmission & Despatch Company

AVIATION

DESCRIPTION The project’s scope of work involves the construction of a 400kV substation and modification works in the North Emirates of the UAE. COMPLETION 30/08/23

King Khalid International Airport Expansion - Baggage Handling System

GOVERNMENTAL

Abu Dhabi Security Search K9 Housing & Buildings BUDGET $32 million TERRITORY Abu Dhabi CLIENT Abu Dhabi General Services PJSC DESCRIPTION The project’s scope of work consists of security search K9 housing and buildings located in Abu Dhabi. The project also includes an administration building, offices, cafeteria, parking facilities, and associated facilities.

COMPLETION 30/12/23

maximize the views for residents.

The interiors offer a minimalist approach and the use of neutral colors creates a welcoming interior when mixed with warm textures such as wooden elements, metal and stone. The project amenities include a gym, multipurpose room, outdoor children’s play area, swimming pool, barbecue pits, Zen/ yoga area and cabanas integrated within the landscaped podium.

COMPLETION 30/03/22

RESIDENTIAL

Creek Edge BUDGET $100 million TERRITORY Dubai Creek Harbour CLIENT Emaar Properties DESCRIPTION The project scope of work consists of 2 residential towers comprising 43 and 22 floors respectively, located at Dubai Creek Harbour, Dubai. The project offering 560 apartments and a limited collection of waterfront duplex townhouses on the podium level, several unique value propositions. The terraced stepping of the towers, high ceilings and large windows

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SAUDI ARABIA RESIDENTIAL

Jubail Housing Units BUDGET $35 million CLIENT Saudi Aramco Shell Refinery Company TERRITORY Jubail DESCRIPTION The project’s scope of work consist of 229 housing units located in Jubail, Saudi Arabia.

The project also includes the construction of garden, car parking facilities and associated facilities.

COMPLETION 30/12/23

BUDGET $40 million CLIENT Saudi Arabia General Authority of Civil Aviation TERRITORY Riyadh DESCRIPTION The project’s scope of work consist of a baggage handling system located at King Khalid International Airport, Riyadh, Saudi Arabia. The project aims to increase airport facilities in order to reduce air traffic congestion and increase transportation facilities within the airport. It also includes baggage conveyors, screening machinery units, and associated facilities.

COMPLETION 30/03/24 HEALTHCARE

Al Qiddiya Entertainment City Hospital BUDGET $700 million TERRITORY Riyadh CLIENT Qiddiya Investment Company DESCRIPTION The project’s scope of work of involves the construction of hospital with a capacity of 40 beds in the entertainment city, Riyadh, Saudi Arabia.

COMPLETION 30/12/25 HOSPITALITY

King Abdul Aziz Road Development Taj Hotel Palaces Resorts BUDGET $150 million TERRITORY Makkah CLIENT Umm Al Qura for Development & Construction Company DESCRIPTION The project’s scope of work consists of a hotel located in the King Abdul Aziz Road (KAAR) Development, Makkah, Saudi Arabia. Within walking distance of the grand mosque (Masjid Al-Haram), the hotel will have approximately 340 keys, banqueting

MEConstructionNews.com | September 2020

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TENDERS

facilities, banquet, parking facilities, several restaurants, and associated facilities.

COMPLETION 30/05/23 MIXED-USE

Wadi Al Aqiq Rehabilitation & Development (Phase 2) BUDGET $155 million TERRITORY Wadi Al Aqiqt CLIENT Al Madinah Al Munawarah Development Authority DESCRIPTION The project’s scope of work involves the rehabilitation and development of Wadi Al Aqiqt located in Madinah, Saudi Arabia. The project includes the construction of buildings, garden, Al Ghab nature reserve, Urwah palace, oasis park, 10 kilometer shaded foot and cycle paths, flood restoration facilities and associated facilities.

COMPLETION 30/03/23

OMAN MIXED-USE

Ras Al Hadd Eco Themed Tourism Development (Phase 2) BUDGET $175 million TERRITORY Ras Al Hadd, Al Sharqiyah CLIENT Oman Tourism Development Company DESCRIPTION The project’s scope of work consist of an eco-themed resort located at Ras Al Hadd, Al Sharqiyah, Oman. The project work includes the construction of 100 rooms resort, 196 residential villas, a dedicated center for wildlife preservation, observation park set over a 10,000 square meter area.

COMPLETION 30/12/23

TERRITORY Sohar Port CLIENT Oman Oil Company DESCRIPTION The project’s scope of work involves the construction of onshore mid-scale liquefied natural gas (LNG) bunkering hub located at Sohar Port, Oman. The global LNG bunkering market is entering a rapid growth period driven largely by the international maritime organization’s legislation to significantly limit sulphur emissions. The project also includes mid-scale modular liquefication plant for marine fuel with the capacity of 1metric tonnes per annum liquified natural gas, storage tanks, loading and unloading facilities, terminal and vessels and laying of pipelines.

COMPLETION 30/12/23 INFRASTRUCTURE

Barka & North Al Batinah Independent Water Plants BUDGET $320 million TERRITORY Barka and North Al Batinah CLIENT Oman Power & Water Procurement Company DESCRIPTION The project’s scope of work involves the construction of a new water desalination plant of approximately 100000 cubic meters per day (22 million imperial gallons per day) and 150000 cubic meters per day (33 million imperial gallons per day) located at Barka and North Al Batinah in Oman.

OIL & GAS

Sohar Port Liquefied Natural Gas Bunkering Hub BUDGET $50 million September 2020 | MEConstructionNews.com

ENERGY

Rusayl Combined Cycle Power Plant Expansion

The project also includes water desalination plants, seawater intake system, pre-treatment system, post-treatment system, laying of pipelines, installation of instrumentation and control system and a pumping station.

COMPLETION 30/09/23 HOSPITALITY

St. Regis Al Mouj Muscat Resort & Branded Residences BUDGET $205 million TERRITORY Al Mouj CLIENT Al Mouj Muscat DESCRIPTION The project’s scope of work consist of a resort and hotel building located at Al Mouj, Muscat, Oman. The project includes 271 crafted guestrooms and suites in the resort and 170 branded residences featuring a mix of one-to-four-bedroom units and duplexes, the master development is an exemple of modern luxury living, offering international tourists, families and residents’ world-class facilities and services.

COMPLETION 30/12/22

BUDGET $60 million TERRITORY Rusayl CLIENT Oman Cement Company SAOG DESCRIPTION The project’s scope of work involves the expansion of the 58MW combined cycle power plant, installation of gas turbine generator, steam turbine generator, heat recovery steam generator, air cooled condenser, equipment and erection, civil & Infrastructure works located at Rusayl, Oman.

COMPLETION 30/12/22

BAHRAIN INDUSTRIAL

Tubli Sewerage Treatment Plant Buildings BUDGET $75 million TERRITORY Tubli CLIENT Bahrain Ministry of Works, Municipalities Affairs & Urban Planning DESCRIPTION The project’s scope of work consists of four mixed-use buildings for Sewerage Treatment Plant (STP) located at Tubli, Bahrain. The project involves the administrative building of the sanitation affairs, Tubli station administration, workshops building, laboratory building along with tertiary treatment works, pumping stations, storage tanks, rehabilitation works on the existing facilities, digestors and associated facilities.

COMPLETION 31/03/23 RETAIL

Sakhir Sports City Shopping Mall BUDGET $50 million TERRITORY Sakhir CLIENT Bahrain Tourism & Exhibitions Authority DESCRIPTION The project’s scope

TENDERS

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of work consist of a shopping mall, retail units, restaurants, entertainment facilities, parking facilities, landscaping works and other associated facilities located in close proximity to Bahrain International Circuit, Sakhir, Bahrain.

COMPLETION 30/12/22

DESCRIPTION The project’s scope of work involves the construction of ring road at West Jileeb Shuyoukh area in Kuwait. The scope also covers construction of pavements, crossroads and associated facilities.

COMPLETION 30/12/23

INFRASTRUCTURE

Sabah Al Salem University City Data Center

COMMERCIAL

Manama Public Transport Infrastructure Work BUDGET $35 million TERRITORY Manama CLIENT Bahrain Ministry of Transportation & Telecommunications DESCRIPTION The project’s scope of work involves the infrastructure works for main and minor roads located at Manama, Bahrain. The project also includes landscaping works, installation of street lighting and other related works.

COMPLETION 30/12/22 INFRASTRUCTURE

East Hidd Housing Development Water Distribution Station BUDGET $22 million TERRITORY East Hidd, Hidd CLIENT Bahrain Electricity & Water Authority DESCRIPTION The project’s scope of work involves the construction of the water distribution system located at East Hidd, Hidd, Bahrain.

The project includes RCC storage reservoir of minimum two million gallons capacity, automated distribution pumping station, installation of speed pumps of about five million gallons per day and 1.1 kilometers, 600 millimeters diameter gravity transmission pipeline.

COMPLETION 30/11/22 AVIATION

Bahrain Aircraft Engine Run-up Facility BUDGET $50 million TERRITORY Bahrain

International Airport CLIENT Bahrain Airport Company DESCRIPTION The project’s scope of work involves the construction of an aircraft run-up facility, aircraft parking facilities, warehouses, administrative space, workshops, jet blast deflector and associated facilities at Western Apron in Bahrain International Airport, Bahrain.

COMPLETION 30/12/23

KUWAIT MIXED-USE

South Al Jahra Labour City BUDGET $500 million CLIENT Kuwait Authority for Partnership Projects TERRITORY Al Jahra Governorate DESCRIPTION The project’s scope of work consists of a mixed use development for expatriate workers located in Al Jahra Governorate, Kuwait. The project will accommodate 20000 workers. The project involves residential areas, commercial and neighborhood services, community services, municipal and utility services and infrastructure facilities.

The project will cover an area of 1,015,000 square meters located in South Al Jahra along the Sixth Ring Road. It will also include public utilities such as mosque, police station, fire station, a clinic, post office, etc. There will also be commercial establishments

such as supermarkets, sports center, restaurants, bakery, labor accommodation, landscape and playgrounds.

COMPLETION 30/07/24 INFRASTRUCTURE

Al Wafrah 6th Ring Road Fresh Water Line BUDGET $105 million TERRITORY Kuwait City CLIENT Kuwait Ministry of Electricity & Water DESCRIPTION The project’s scope of work involves the construction of freshwater line diameter 1200 milimeter from abundance to the 6th ring road located at Kuwait City, Kuwait.

COMPLETION 30/03/23 INFRASTRUCTURE

West Jileeb Shuyoukh Area Ring Roads BUDGET $50 million TERRITORY West Jileeb Shuyoukh CLIENT Kuwait Ministry of Public Works

BUDGET $40 million TERRITORY Sabah Al Salem University CLIENT Kuwait University Construction Program DESCRIPTION The project’s scope of work involves the construction of a data center information technology (IT) infrastructure, disaster recovery hosting under co-location and disaster recovery IT infrastructure, datacenter and disaster recovery network infrastructure, external network infrastructure, datacenter and disaster recovery information and cybersecurity infrastructure at Sabah Al Salem University in Kuwait.

COMPLETION 30/12/23 INFRASTRUCTURE

Kuwait New Passenger Terminal 2 Crossroads BUDGET $200 million TERRITORY Kuwait International Airport CLIENT Kuwait Ministry of Public Works DESCRIPTION The project’s scope of work involves the construction of road that will link at Magwa road with the passenger terminal at Kuwait International Airport, Kuwait.

The new road will extend from the 2nd ring road to the southern part of Terminal 2 of Kuwait International Airport. It also includes laying of road markings, road signs and landscaping works, installation of street lighting, traffic signal facilities and other associated works.

COMPLETION 30/12/23

MEConstructionNews.com | September 2020

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PROGRESS REPORT

Final update

Riyadh’s The District Al Faisaliah redevelopment begins second phase $533 million project is being designed

by US-based architecture firm, Gensler

L

uxury hospitality and property management company Al Khozama Company says the start of the second phase of its The District Al Faisaliah redevelopment project has commenced.

Costing $533 million to build, redevelopment project is being designed by the US-based

architectural firm Gensler. It is scheduled for completion in 2024.

The project incorporates Al Faisaliah Tower, Al Khairiah Towers, Al Faisaliah Hotel, Al Faisaliah Suites, Hotel Al Khozama and the Mode Al Faisaliah Mall in the Olaya District.

Work on the first phase began in 2017 and featured the refurbishment and expansion of the Mode Al Faisaliah Mall, extending its square-metre footprint by 20%, to 35,400sqm.

The nearby Al Faisaliah Hotel is also currently undergoing renovation as part of this phase ahead of its completion in 2021.

The second phase is described as incorporating futuristic architectural design with intelligent urban planning.

According to Al Khozama Company the

September 2020 | MEConstructionNews.com

Perfect integration The development of The District Al Faisaliah will create the perfect integration of contemporary retail, commercial, entertainment, hospitality, well-being and residential living, the developer says.

2024

Scheduled date of completion

design “is intended to create the perfect integration of contemporary retail, commercial, entertainment, hospitality, well-being and residential living.”

A nine-screen cinema is also set to be built in the redevelopment with fully landscaped outdoor green areas also planned. Visitors will be able to gain direct access to the Riyadh Metro or use a five-level underground parking facility for more than 1,000 cars.

The existing Hotel Al Khozama, one of the first to open in Riyadh, is set to close this month and be replaced by 2024 with a new replaced with a contemporary 5-star successor. The new property will comprise 200 guest rooms and suites, two restaurants, connected meeting rooms, a ballroom, spa & health club, and pool deck.