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THE BUSINESS OF CONSTRUCTION
Project Champions
BIG PROJECT ME CELEBRATES THE BEST OF THE REGIONAL CONSTRUCTION INDUSTRY FOR 2019
2
CONTENTS
December 2019
10
18
24
30
34
48
ANALYSIS
FEATURES
INSIGHT
10
24
34
Big Project ME Awards
48
ME BIM Summit 2019
57
Tenders
60
Progress report
The briefing
Executives from ACWA Power and ENOC Link discuss using renewable energy on projects, and digital disruption
14
The big picture
Providing a wrap-up of the biggest local, regional and international construction news stories
18
Market report
20
News analysis
ProTenders report finds that the UAE will continue to invest in healthcare, education and sustainable infrastructure projects
Clementine Malim from Savills Middle East says that sustainable urban regeneration can revitalise a city
December 2019 | MEConstructionNews.com
In profile Fouad Mashal
Big Project ME has an exclusive interview with Fouad Mashal, CEO of Al Barakah International Investment, about the Abu Dhabi developer’s first venture into the leisure and entertainment sector with Al Qana
30
Project profile Etihad Rail Stage 2
Big Project ME speaks to CSCECME about the latest developments in the ongoing works on its package for Etihad Rail
Angitha Pradeep recaps the Big Project ME Awards 2019, held at the Oberoi Hotel on November 26
Angitha Pradeep recaps the events of the ME BIM Summit 2019, which featured the region’s leading BIM experts
Big Project ME, in association with ProTenders, provides the biggest tenders for the month of December 2019
TRSDC announces the award of the design contract for the project’s international airport, which goes to Foster + Partners
4
WELCOME
Introduction
2019 sets the stage for a stellar 2020
H
ere we are then, at the end of another year, and what a year it’s been. 2019 has been a year full of interesting developments. While the anticipation for Expo 2020 Dubai continues to dominate the headlines, this year has seen a number of significant steps towards reforming the real estate and construction industries, starting with the announcement from HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, that a committee will be formed to maintain the stability and balance between supply and demand in the real estate market. Furthermore, the raft of government-backed infrastructure projects has been a key factor in the growth of the construction sector in 2019, with Dubai in particular benefiting from this surge. While Expo-linked infrastructure projects have been the focus, the UAE has invested significantly in developing the infrastructure of the entire country, with significant spending on road networks and in the oil & gas sector.
December 2019 | MEConstructionNews.com
Looking at the rest of the GCC, Saudi Arabia continues to be a massive player in the growth of the sector, with the government spending billions to develop projects that will diversify its oil-dependent economy. Chief among these are NEOM City and The Red Sea Project – two gargantuan developments that have the potential to reshape the Kingdom’s entire economic outlook. Kuwait too has been a significant spender this year, while Oman and Bahrain have also launched several transformational projects. This focus on projects was reflected in the submissions for the Big Project ME Awards 2019, which saw 140 nominations submitted for consideration, the bulk of them in the project-focused categories. I was delighted to see so many quality nominations, though the one comment I would make for 2020 is that we would love to see greater diversity among the submissions. There is plenty of quality work being done in the GCC that should also be recognised. Finally, I would like to wish all our readers a very happy New Year, and may 2020 be a successful year!
Gavin Davids
GROUP EDITOR gavin.davids@cpitrademedia.com @MECN_Gavin MEConstructionNews me-construction-news
Congratulations to ASGC Contractor of the Year Project of the Year for Coca-Cola Arena Excellence in BIM
Follow ASGC on
@ASGCUAE
6
Licensed by Dubai Development Authority
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December 2019
MEConstructionNews.com
THE BUSINESS OF CONSTRUCTION
Group MANAGING DIRECTOR Raz Islam raz.islam@cpitrademedia.com EDITORIAL DIRECTOR Vijaya Cherian vijaya.cherian@cpitrademedia.com
Editorial GROUP EDITOR Gavin Davids gavin.davids@cpitrademedia.com +971 4 375 5480 JUNIOR REPORTER Angitha Pradeep angitha.pradeep@cpitrademedia.com +971 4 375 5479
Project Champions
BIG PROJECT ME CELEBRATES THE BEST OF THE REGIONAL CONSTRUCTION INDUSTRY FOR 2019
ON THE COVER
Big Project ME celebrates the innovators, trend-setters and change-makers in the construction industry at the Big Project ME Awards 2019
SUB EDITOR Aelred Doyle aelred.doyle@cpitrademedia.com
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December 2019 | MEConstructionNews.com
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8
ONLINE
MOST POPULAR
READERS’ COMMENTS
FEATURED
CONSTRUCTION
DUBAI MUNICIPALITY, DUBAI
Guardian Glass helps Sabic’s Home of Innovation achieve zero net energy balance
SILICON OASIS LAUNCH LAB TO DEVELOP GEOSPATIAL INFRASTRUCTURE
I can’t think of a greater gift from this phase of development in the UAE than proving that we can all build the infrastructure
CONSULTANT
that holds our cities and
Turner & Townsend readies UAE’s largest IKEA for December opening
communities together in the most sustainable way possible. The construction industry in the UAE has
Experts: The company behind Al Wasl Plaza’s dazzling steelwork
always relied on bringing over the best brains of the construction industry
CONSTRUCTION
from across the world.
Riviera Group announces opening of La Riviera Apartments
The legacy of this can be seen in the iconic buildings that push up into the skylines of Dubai and Abu Dhabi. Initiatives like this (Dubai Municipality,
Dubai Silicon Oasis launch lab to develop geospatial
CONSULTANT
H+A Global wins design contract for Wellness Village in Jeddah
infrastructure) and the work being done in institutions like Masdar and the universities are proof that the future will be about establishing the country as a centre for innovation for the entire
CONSTRUCTION
L&T Construction wins multiple EPC contracts from JUIDCO December 2019 | MEConstructionNews.com
Project profile: The Mall of Oman, a nation’s destination
global industry. Name withheld by request
Experience the Progress.
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lifting capacity: 8,000 kg radius: 45.0 m lifting capacity at the jib head: 2,200 kg hook height: 59.1 m
Liebherr Middle East, FZE. Jebel Ali Free Zone (South), Plot No. S. 1050 P.O. Box 2540 Dubai United Arab Emirates Phone+971 4 88 91 888 info.ldu@liebherr.com www.liebherr.com/mk
MK now available in Middle East
10
THE BRIEFING
Infrastructure
Green Waters
MIDDLE EAST
Rajit Nanda, chief investment officer for ACWA Power, discusses key trends in the energy industry and how developments in renewable power and technology have transformed GCC water desalination techniques
S
audi Arabia’s ACWA Power and Emirates Water and Electricity Company (EWEC) recently announced that they have reached financial close on the world’s largest reverse osmosis desalination plant, Taweelah Independent Water Project (IWP) in Abu Dhabi, for $868.5m. Under the terms of the agreement, 60% of the ownership for the project is held by the Abu Dhabi Power Corporation (ADPower), of which EWEC is a subsidiary, while the remaining 40% is owned by ACWA Power. Construction began three months ago and the project is scheduled for completion in Q4 2022. The EPC contractor is a consortium of Sepco III from China and Abengoa from Spain. The tariff offered by ACWA Power for the Taweelah IWP plant is the
December 2019 | MEConstructionNews.com
lowest achieved to date in the world for desalinated water. The project, when constructed, will also set another world record by using the least energy per gallon of desalinated water produced; the size of the project is 200 million imperial gallons per day (MIGD). Meanwhile, a second desalination plant based on reverse osmosis technology has already started limited construction and is expected to be commercially operational in Q3 2022. The UAQ 150 MIGD IWP is located at a coastal site in Umm Al Quwain along the border of Ras Al Khaimah. ACWA Power is the lead developer and holds 40% of the shares, while another 40% is owned by Abu Dhabi’s Mubadala and 20% is owned by FEWA. The water purchase agreement is with FEWA, making it the off taker and part shareholder.
200m
The Taweelah IWP plant project will produce 200 million imperial gallons per day (MIGD) of desalinated water
11
Cost-competitive The use of new, sustainable technologies has made reverse osmosis-based water production more cost-competitive.
Metamorphosis The regional energy mix is going through a metamorphosis and conventional power is being replaced by renewable energy.
Considering the recent developments in water desalination projects, Big Project ME sits down with Rajit Nanda, chief investment officer at ACWA Power, to hear his observations on the region. Nanda says: “Some of the trends we are seeing in the region concerning water projects are that governments have started recognising that there is doubledigit growth in this sector and are trying to meet this increasing demand with reverse osmosis-based desalination.” He says there are two phenomena happening in water desalination. First, there is more capacity for the natural increase in water requirement. Secondly, many of the procurers and utility companies are shifting from existing thermal desalination technology to more cost-efficient reverse osmosis-based technology. He further explains: “In the past, reverse osmosis-based water production used to be slightly expensive, but with the advancement of technology and the use of solar power, since the most important operating cost of desalination is electricity, it has become very costcompetitive. Apart from that, there is a significant improvement in the membrane technology, as well as in terms of efficiency and longevity. All of this coupled together is leading to breakthroughs in the cost of desalinated water production. It has become half of what it used to be six, seven years back in this region.” Several different forms of desalinated water technology are currently in the pilot stage, and with their expansion into commercial viability, the expected cost of water production is going to go even further down from the current $0.5/m3 to maybe 30-35 cents/m3. Seven years ago, the cost of producing water was $1/m3. Moreover, Nanda says that since reverse osmosis is starting to use solar power during daytime, integrated with the overall water facilities, there is a new phenomenon of transitioning from water to ‘green water’. “When you have water projects which are based on sustainable sources of energy, let’s call it green water. Not only on the water side, but on the power side as well, countries and procurers are embracing decarbonisation and we are starting to see a real fusion in
If you look into the pipeline and the procurements that are being undertaken in the UAE, Saudi Arabia, Oman and even Bahrain, all these countries are rapidly embracing and accelerating the deployment of renewables into the overall grid” the GCC region. What that essentially means is that the overall energy mix is going through a huge metamorphosis, and conventional power is now being
replaced with renewable power in a very significant manner for all the new capacity additions that are coming online. “If you look into the pipeline and the procurements that are being undertaken in the UAE, Saudi Arabia, Oman and even Bahrain, all these countries are rapidly embracing and accelerating the deployment of renewables into the overall grid.” Nanda says renewable energy is becoming cost-competitive, is available significantly below grid parity, is sustainable, and is here to stay. “From a regulation perspective, the UAE market for power generation is based on the independent power producer model, where the contracts are on a fixed stake or pay basis. These are long-term contracts and therefore able to attract very competitive private capital, because the whole model is a de-risk model – you don’t take market risk. In this powerpurchase agreement, the price is fixed; and when there is no price volatility, private capital can be attracted at a very competitive cost,” he concludes.
MEConstructionNews.com | December 2019
12
THE BRIEFING
Linking the Future MIDDLE EAST
Saeed Amiri, chief business officer at ENOC Link, talks about how the company is transforming its business to a more digital operation, and adapting to changing market and customer requirements
December 2019 | MEConstructionNews.com
E
arlier this year, ENOC announced that it will invest $600m to expand its fuel network in the UAE and Saudi Arabia, particularly to meet increasing demand from customers for Expo 2020 Dubai. More recently, the company announced ENOC Link, a fully owned subsidiary of ENOC Group, created as part of Next, the group’s digital accelerator programme. The service, currently available only in select areas, allows motorists to refuel their cars without having to visit a petrol pump. Big Project ME meets with Saeed Amiri, chief business officer at ENOC Link, to learn how the company is transforming its existing business to a more digital operation and adapting
to changing market and customer requirements. Amiri explains: “ENOC Link is an extension to our existing gas network stations, but with this new venture we are bringing the services of a gas station to our clients. Here, we have two different business models – B2B and B2C. B2C customers require fuel to be delivered to their homes, offices or wherever they are, while B2B is mainly focused on commercial and corporate customers. “So our model is based on an app. It’s an on-demand service where the customer has to download the application, register his vehicle and credit card, and can then order fuel anytime he wants. Our delivery truck will reach him, and the refuelling will be done seamlessly.
13
Servicing industry ENOC Link has begun piloting its B2B services and the construction industry’s equipment sector is one target market.
30
ENOC Link currently has 30 fuel delivery vehicles
“On the B2B side, we started piloting this service from April, and through market research and studies have identified that corporate customers really need fuel to reach them for a variety of reasons. One of the reasons is that cranes and construction equipment can’t physically reach gas stations, hence it is easier for them to have fuel delivered to them. “Meanwhile, ENOC Link was piloted to our B2C customers in September, but we have not launched it in the entire city for now. We have signed a few deals with residential developers to exclusively deliver fuel to their tenants.” Amiri says that with Expo 2020 Dubai approaching, the firm is anticipating 25m visitors and a dramatic increase in the fuel requirements. ENOC currently has a network of more than 130 gas stations, which will be upgraded to 190 gas stations by the end of 2020. “We have also launched the compact station, which is a smaller model of the traditional fuel station and is also relocatable, so it is an extension to the existing gas stations that we have. Similarly, ENOC Link is another extension to our gas stations. We believe there are specific areas in Dubai and other emirates where gas stations are not available and end users need a trusted fuel delivery service.” Moreover, he says ENOC has a complete fraud-free solution – an online truck where ENOC has eliminated human interference in the transaction, with all communication on an end-to-end digital basis. “For our business customers, in addition to these facilities, they have their own dashboard where they can see all the transactions executed, including the kind of fuel, kilometre count, utilisation of vehicles, etc. Not only that, companies can track fuel consumption, engine efficiency and make intelligent choices for future equipment purchases, so it’s a complete solution.” Asked about safety concerns, Amiri says this is one of the main reasons it took a long time for ENOC to launch the service. “We started this a year ago, and most of the time was spent
The UAE market is evolving, and we need new innovative products like ENOC Link that are in line with the government’s vision and will contribute to its smart city visions” in perfecting the model, because safety is the most important factor in any oil & gas industry,” he says, adding that all components of the
delivery truck have been designed based on high safety standards. “Coming to the licensing and regulation side, we have always supported the UAE government’s initiatives, whether that is in stopping illegal trade of fuel or to address concerns about unreliable fuel suppliers in the market.” Amiri says it’s always good to have competition, because in a healthy market customers have different choices of suppliers. He concludes: “The UAE market is evolving, and we need new innovative products like ENOC Link that are in line with the government’s vision and will contribute to its smart city visions. Here we are reducing traffic on the road and at the station, and you will find fewer customers changing their route to visit gas stations.” MEConstructionNews.com | December 2019
14
THE BIG PICTURE
01 USA
03 IRELAND
Enel Green Power to construct 299MW wind farm
$440m Greenlink Interconnector project under process
France’s Enel Green Power has commenced construction on the 299MW Aurora wind farm in North Dakota in the US. Parent company Enel is investing $450m in the wind farm, which will be operational by the end of 2020. The Aurora wind farm will generate about 1.3TWh of clean energy while avoiding about 850,000 tonnes of CO2 emissions annually. It will be supported by a 23-year power purchase agreement (PPA) under which 142MW of power from the project will be supplied to local utility Basin Electric Power Cooperative.
02 USA
JFK International Airport to have new terminal The Board of Commissioners of the Port Authority of New York and New Jersey (PANYNJ) has approved a proposed lease agreement for a new $7.4bn terminal at John F Kennedy International Airport (JFK) in New York. The lease agreement will be signed with a consortium of airlines, and development and financial partners include Carlyle Group and JLC Infrastructure. The 260,128sqm terminal will begin construction in early 2020, with completion scheduled for 2025.
04 UNITED KINGDOM
06 SPAIN
Iberdrola to develop solar plants in Spain
Muse wins development role on $841m scheme in UK Muse Developments has been selected as the development manager for the $841.5m North West Quadrant scheme in Slough, England, as part of the Slough Urban Renewal plan. The scheme will provide 1,400 homes across a range of tenures, more than 23,225sqm of commercial space, 4,180sqm of ancillary leisure and retail, and 13,935sqm of cultural facilities and public realm. Master-plan proposals for the new scheme are planned to be developed over the coming months, with public consultation scheduled for the end of 2020.
December 2019 | MEConstructionNews.com
Greenlink Interconnector Limited, the developer of a 500MW interconnector between the UK and Ireland, has announced that it has submitted planning applications for a subsea interconnector on both sides of the Irish Sea. Being built with an investment of $440.8m, the Greenlink Interconnector project involves the construction of subsea and underground interconnector cables. In addition, it will build the associated converter stations to link the existing electricity grids in Ireland and Great Britain.
05 FRANCE
Siemens wins $503m contract in France
Siemens has secured a contract worth about $503m from the special-purpose company Compagnie Electrique de Bretagne, owned by French gas and energy provider Total Direct Énergie (TDE), a subsidiary of Total, for the construction of a new combinedcycle power plant in France. The plant will be executed as a turnkey project and will have an installed capacity of 446MW. Under the contract, Siemens will be responsible for the supply of an SGT5-4000F gas turbine, an SGen52000H generator, an SST5-3000 steam turbine, an SPPA-T3000 control system and the heat-recovery steam generator.
Spanish power firm Iberdrola has announced plans to build three solar plants in the Extremadura region of Spain, with a combined capacity of 400MW. The two solar projects will have a power generation capacity of 50MW each, while the third 300MW facility will have grid access as well. Scheduled for commissioning in 2020, the two projects are expected to create 200 jobs during the construction phase. The new projects will add to the company’s 1,800MW of solar projects currently under construction or in pipeline. By 2022, Iberdrola aims to have 3GW of installed renewable capacity in Spain.
THE BIG PICTURE
03
15
07
04
05 01
06 02
09
08
08 GHANA
Ghana to have $2.6bn high-speed railway project 07 POLAND
Kellogg’s begins construction on new facility in Poland US food manufacturer The Kellogg Company (Kellogg’s) has commenced construction on its new $121.3m manufacturing line at its Pringles factory in Kutno, Poland. The new facility is expected to commence operations by May 2021. The new manufacturing line is the fourth facility at the Kutno plant, and will be housed in a 21,000sqm building. Kellogg’s added that it has invested in the new line to meet the growing demand for Pringles across Europe, and that the new facility is expected to create 100 new jobs in the region.
The government of Ghana has signed a concession agreement with South African firm Ai SkyTrain Consortium Holdings for the construction of a $2.6bn highspeed railway in Ghana’s capital, Accra. The initiative involves the development of five routes. Backed by African Development Bank (AfDB) funding, the Accra SkyTrain high-capacity public transport system will feature pneumatic propulsion technology and will have the capacity to transport more than 380,000 passengers annually and create 5,000 jobs during its implementation phase.
09 EGYPT
Alexandria Metro to start construction in Q1 2020 The governor of Alexandria, Abdul Aziz Qansua, has reportedly announced that the construction of the Alexandria Metro will begin in the first quarter of 2020, at a cost of $1.05bn. It will be implemented over two years in three phases. Upon completion, the first phase will extend from Abu Qir railway station to Misr station, the second phase will go from Misr station to Max station, and finally the third stage will extend from Max station to Alkyl and then 21km to Matrouh Road, with a holding capacity of 10,000-15,000 commuters an hour.
MEConstructionNews.com | December 2019
16
THE BIG PICTURE
10 14 11 13
17
12 16
18
15
10 JORDAN
12 UNITED ARAB EMIRATES
A Memorandum of Understanding (MoU) has been signed to boost cooperation in a detailed technical study on electrical interconnection between the three parties. The electrical interconnection grid would link the six GCC countries to the interconnection point in Jordan through a 1,400km-long 400kV overhead line, then interconnect with Egypt through a 780km-long 400kV overhead line. The interconnection would transmit around 2,000MW of power between the GCC countries, Egypt and Jordan in the first phase. This power transmission capacity might be increased, based on the electrical demand of the connected parties.
The Dubai Land Department (DLD) recorded 4,774 overall property sales in October, the highest since 2008, disputing claims of Dubai’s property market weakening. The emirate also registered 2,841 overall off-plan transactions last month, the second highest since September 2015, which had 3,258 deals. Dubai property prices have been declining since 2014 due to a three-year slump in oil prices and market oversupply; however, other factors have helped increase sales recently. The central bank has issued a notice to remove the 3% early settlement fee for mortgages introduced last year and go with the default 1% or $2,722 cap.
GCCIA signs MoU with Jordan, Egypt
December 2019 | MEConstructionNews.com
Dubai property market sees 11-year high 11 SAUDI ARABIA
KSA to have world’s largest mixed-use entertainment centre Al Akaria Saudi Real Estate Company has announced its collaboration with Arabian Dreams KSA, to develop the world’s largest mixed-use entertainment and shopping centre development of its kind at Akaria’s Al Widyan site in Riyadh. Estimated to cost $5bn to develop, this new destination will comprise theme parks, water parks, recreational and sports facilities, retail dining, shopping centres and hospitality components. It will also have the latest AI technology for visitors to experience. The project is in line with Saudi Arabia’s Vision 2030.
THE BIG PICTURE
17
14 BAHRAIN
AXA 6,200sqm building to be ready by end of year 13 SAUDI ARABIA
Saudi Arabia starts Diriyah Gate project Saudi Arabia’s Diriyah Gate Development Authority (DGDA) is set to lay the cornerstone for Diriyah Gate, a new cultural and lifestyle tourism destination in Diriyah, Riyadh. The event comes as the country seeks to diversify its economy and increase tourism figures. The 7sqkm project will include places to gather, explore, shop, dine, live and work. It will also have a diverse collection of museums and galleries, as well as a range of cultural and educational experiences. It will be surrounded by more than 20 luxury hospitality brands and will also feature five iconic squares, a Formula-E racetrack and a 15,000-seat arena.
Construction consultancy Linesight has announced that it will deliver AXA Insurance Gulf’s first fully-owned 6,200sqm seven-storey building, situated in the Bahrain Bay development, on time and within budget by the end of 2019. Approximately 3,200sqm will be available for office and retail lease. The AXA building will be grade-A standard, with sustainability a main consideration in the design, build and fit-out works. The build will feature rooftop solar panels, automated lighting controls and up-to-date security.
15 OMAN
Region’s largest paper recycling facility in Oman Suhar Industrial City has signed an investment deal with Keryas Paper Industry which provides Keryas with land in Phase Seven of the former entity, in order to establish a paper recycling facility. The project is expected to occupy some 58,000sqm and will be developed at a cost of $40m. The paper recycling is expected to use the latest technologies and is expected to have a production capacity of up to 600 tonnes per day. Construction work is expected to begin in December 2019 and pilot production is expected to begin in the last quarter of 2020.
17 TAIWAN
Construction begins on $2bn wind farm in Taiwan 16 INDIA
ADP approves $451m funding The Asian Development Bank (ADB) has approved a $451m loan to improve power connectivity in the Indian state of Tamil Nadu, with a 765kV transmission link established to transfer 9,000MW of extra capacity from Virudhunagar to Coimbatore, a major industrial centre, and Chennai. Expected to be completed by the end of 2024, the project includes the construction of a 400kV network to collect the power generated at renewable and thermal power plants in the Thoothukudi district and transmit it to the district of Virudhunagar, which is an important industrial centre for the state of Tamil Nadu.
A joint venture of Macquarie’s Green Investment Group (GIG) and Swancor Renewables has commenced onshore construction on the $2.05bn Formosa 2 offshore wind farm off the coast of Miaoli County, Taiwan. Due to become one of the largest offshore wind farms in Taiwan, the 376MW Formosa 2 project will have the capacity to generate enough clean electricity to power over 380,000 households per year. Siemens Gamesa will provide 47 8MW wind turbines for the project, and construction is scheduled to commence in spring 2020.
18 HONG KONG
Bouygues wins $1.2bn tunnel contracts
Bouygues Construction has been awarded two contracts worth $1.23bn by the Hong Kong government for two road tunnels in the Kowloon Peninsula. The two contracts for the Central Kowloon Route (CKR) and the Trunk Road T2 form part of a new trunk road under construction, known as Route 6. Under the first contract, worth $401.7m, Bouygues Travaux Publics will be responsible for the construction of a 2.8km section of a twin-tube tunnel linking Yau Ma Tei and Ma Tau Kok, two access tunnels and a ventilation shaft. Bouygues said it has already commenced the works, with the project scheduled for commissioning in 2025.
MEConstructionNews.com | December 2019
18
MARKET REPORT
Industry outlook
UAE Q1 2020 Construction Contract Award Forecast
UAE
ProTenders analysis finds that the UAE will continue to invest in healthcare and education projects, as well as sustainable infrastructure
T
he UAE’s leadership and vision has resulted in a significant drive towards economic diversification and innovation. UAE strategy 2021 focuses on a
December 2019 | MEConstructionNews.com
knowledge economy, world-class healthcare and a first-rate education system. As such the UAE will continue to invest through public and private investment in healthcare and education, as well as a sustainable infrastructure, over the near future. According to current available data, there are $385.8bn of projects forecast in the UAE. Although $252.9bn of these projects are announced to be awarded in 2020, we highly believe that the contractors’ capacity, funding and real estate cyclical planning will result in only a maximum of $89bn of these projects to be awarded in 2020, with the balance moving forward. Hospitality and infrastructure projects led by the UAE governments will not be delayed beyond the announced date, as these are key economic projects. We forecast that residential and commercial
office buildings developed by the private sector will be delayed beyond 2020. As such, we forecast on average $34bn of infrastructure projects to be awarded between 2020 and 2022. Over the same period, we forecast $45bn of urban sector projects. The Dubai government has approved a budget for 2019 foreseeing expenditure of $15bn, a marginal increase on last year, with infrastructure investment for the upcoming Expo 2020 again a focus for the emirate. The emirate of Fujairah has been granted a budget of $272.2m to fund the construction of infrastructure projects as the UAE’s urban development efforts pick up pace. Nuclear power and waste are other resources that the UAE is looking to, to diversify away from oil & gas sources. Renewable energy has emerged as an attractive option for the UAE.
MARKET REPORT
VALUE OF PROJECTS BY STATUS ($BN) Design
ONGOING PROJECTS BY SECTOR ($BN) Oil & Gas
Planning
182.3
867.3 Total
UPCOMING PROJECTS BY SECTOR ($BN)
Infrastructure
65.4
130.2
19
116.1
Oil & Gas
Infrastructure
69.3
142.0
452.8 Total
414.5 Total
Urban Buildings
Urban Buildings
TOP 5 CONTRACTORS BY VALUE ($BN)
TOP 5 CONSULTANTS BY VALUE ($BN)
Tender
8
40
30
4
20 Wade Adams Contracting
AECOM
60
BIC Contracting
60
Ghantoot Transport & General Contracting
12
CSCEC
90
Arabtec Construction
80
Abu Dhabi General Services PJSC
16
Roads and Transport Authority (RTA)
120
Abu Dhabi National Oil Company
100
Aldar Properties
20
Emaar Properties
150
Fluor Corporation
TOP 5 DEVELOPERS BY VALUE ($BN)
203.2
Adnan Saffarini Consultants
271.3
KEO International Consultants
452.8
WSP
102.0
Under Construction
CONSTRUCTION CONTRACT AWARD FORECAST Q4 2019 - Q1 2020 ($BN) Urban Buildings
19.0
Urban Buildings
35.0 Infrastructure
22.0
Infrastructure
8.0
Q1 2020 total
60.0
19.0
Q4 2019 total
32
59.0 24
16
16.0
40
Oil & Gas
8
Source: ProTenders
Oil & Gas
MEConstructionNews.com | December 2019
20
ANALYSIS
Sustainability
The Case for Sustainability – What Middle East cities can learn from London
UNITED ARAB EMIRATES
Clementine Malim, associate, International Residential Sales Middle East, Savills Middle East, examines how sustainable urban regeneration can revitalise a city
A
ll around the world, developers are looking to repurpose land and space, reviving urban spaces and regenerating brownfield and industrial sites. London is a great example, with a number of key urban regeneration schemes, including Battersea Power Station, King’s Road Park, Triptych and Grand Union, transforming former industrial and brownfield sites into connected world-class residential communities. Developments such as these are a response to the demand and undersupply of secondary market stock. Outbound investment in real estate from the Middle East grew by 62% in the first half
December 2019 | MEConstructionNews.com
of 2019, faster than any other region, as MENA buyers recognise the opportunity that London and other key cities offer in terms of the growth in demand for rentals in sustainable communities, as well as the financial growth offered by sustainable developments. The lack of prime space for developments in the city has served to drive demand further from Middle East investors. The UK is now the most popular country for capital investment, followed by Germany, with London traditionally holding the title of most popular city for global investors, keen to take advantage of currency exchange rates. Savills has identified that a £5m investment in prime central London real estate would
Driving demand The UK is currently the most popular country for capital investment, with London the most popular city for global investors.
1,400
jobs to be created at Apple’s Battersea Power Station HQ
ANALYSIS
effectively cost 40% less today than five years ago (pre-tax). The London gap in pricing is closing, however – the pound is predicted to recover as property demand increases and uncertainty wains, and more sustainable living is offered in attractive communities. As the market stables out, developers have responded to the demand with regeneration sites at the forefront. Truly sustainable communities and regeneration developments, however, are about much more than their environmental impact. They should drive social and economic regeneration, offering opportunities for jobs and education and supporting local businesses. Key drivers in London value are the quality of place and the travel time to central locations. Sustainable developments also need to include social, cultural and economic elements. The most popular include open parks/spaces, centres for the community and convenient access points. Developments such as the iconic Battersea Power Station and Grand Union, which is part of a canal-side regeneration project with 11 acres of public green spaces and waterside walks, are transforming the local landscape and creating thriving communities and truly sustainable neighbourhoods and work hubs. When it comes to access and location, sustainable developments are now expected to provide work, retail and community hubs, in order to reduce travel time and contribute to a healthier work-life balance. People are looking to work closer to home, which major global companies have recognised – Google has invested £1bn in a new King’s Cross HQ which will generate 3,000 jobs by 2020, and Apple has created another 1,400 jobs to fill its new world-class hub at Battersea Power Station HQ. As well-being becomes increasingly important, the ability to walk to work, school and local retail outlets is being seen as a major benefit, as it reduces traffic in the area (limiting greenhouse gas and noise, as well as the potential for accidents). New sustainable communities require a shift in the preferred mode of transport, from motor vehicles to walking, cycling
and public transport, which in turn require improved infrastructure, from electric charging stations and cycle lanes to new lines of public transport. In London, transport links across the city are improving with new extensions proposed for the London Underground and over ground, and easy access to key road, rail and air hubs. The new development at Battersea Power Station, for example, will benefit from a Northern Line extension which will provide a Zone 1 station at Battersea and transform the iconic riverside building into a thriving mixed-use community. At the same time, Triptych Bankside offers an enviable location close to key leisure
11 Grand
Union project will have 11 acres of green space
Driving communities Truly sustainable communities drive social and economic regeneration and increased productivity.
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and cultural hotspots such as Borough Market, Shakespeare’s Globe Theatre and the Shard, while remaining an easy transport hub for the City. These changes increase productivity in the area, attract more visitors and investment, and often translate into an increase in residential values. New developments, whether in London or Dubai, are now being designed as communities with their own identity. Community spaces within these developments have been proven to help battle loneliness and social isolation, and with this in mind are often built on shared similarities. The way these communities are developed, and the amenities they offer,
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ANALYSIS
Sustainable developments are now expected to provide work, retail and community hubs, in order to reduce travel time and contribute to a healthier work-life balance” are fundamental to establishing the character of an area and creating a sense of belonging, whether through sporting facilities, retail stores, restaurants and cafés, artwork, event programmes, green spaces or leisure facilities. In London, King’s Park Road is a new multi-phase development that has
been specifically designed to create its own well-equipped community, with top-of-the-range facilities including two in-house cinemas, a 25m swimming pool, gym, spa and golf simulator. These sustainable developments in London can hold valuable lessons for the Middle East. Buyers desire convenience-driven, technologically connected, sustainable community living. Creating these communities and place-making in this way strengthens the local community and neighbourhood in support of local businesses. Proposed sustainable communities and regeneration developments need to take into account the local climate, transport links and internal spaces. The buildings themselves need to involve more than just solar panels; it’s important to assess the orientation of the buildings to take advantage of thermal energy, to look at the size of the windows to take advantage of natural light, to use locally sourced products, and to reduce carbon emissions in the delivery chain. In terms of infrastructure, these new communities in the Middle East need to be supported by improved public transport options, construction efficiencies, building management efficiencies, an increased use of renewable energy and electric vehicle charging infrastructure. The UAE’s specific climate conditions play an important part in the necessity for enhanced infrastructure. Dubai Metro
December 2019 | MEConstructionNews.com
London learnings Middle Eastern investors can learn valuable lessons from developments in London, says Clementine Malim.
Setting benchmarks Pilot projects such as The Sustainable City set the benchmark for future sustainabilityfocused developments.
46 total area,
in hectares, of Dubai Sustainable City. The property development has 500 villas and 89 apartments
has just celebrated its tenth anniversary, testament to increasing demand for public transport with tunnels and connective walkways. We expect to see further use of underground building design that offers climatic insulation and sustainable features in the future. In Dubai, Sustainable City is a very good example. The project is built around principles of social, environmental and economic sustainability, and offers an environmentally friendly lifestyle with waste and water recycling and car-free residential clusters. Even though the supply of sustainable buildings in the region is still at a nascent stage, developments such as these are pioneering the concept and setting a benchmark for future developments. An increasing number of developers are now trying to incorporate some element of sustainability either into the design or the raw materials used, as the long-term advantages of a sustainable development outweigh any upfront financial implications. The last 20 years have seen an exponential transformation of Dubai, diversifying and growing at break-neck speed, with developers responding and playing catch-up to meet economic conditions and unprecedented acceleration in both population and investment. Some developers have succeeded in creating fully fledged master communities with excellent town planning, superior designs and a real identification of resident requirements and good infrastructure and facilities. The supply has kept abreast of demand and has expanded into soughtafter, mature lifestyle communities. The abundance of ‘affordable’ housing in secondary and suburban areas of Dubai has created a supply of options to suit all needs and budgets. Less considered developments that do not compete with these facilities or which are disconnected from infrastructure have become plentiful, and accordingly pricing and demand have adjusted. Moving forward, it would be good to see the maturing balance of neighbourhoods and the dots joined between communities, as we see in cities such as London.
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IN PROFILE
Fouad Mashal
The Happiness Quotient
BIG PROJECT ME CATCHES UP WITH FOUAD MASHAL, CEO OF AL BARAKAH INTERNATIONAL INVESTMENT, THE ABU DHABI-BASED DEVELOPER BEHIND THE UAE CAPITAL’S MOST EXCITING UPCOMING LEISURE AND ENTERTAINMENT DESTINATION, AL QANA December 2019 | MEConstructionNews.com
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MEConstructionNews.com | December 2019
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IN PROFILE
lthough Dubai is still the bestknown tourism destination in the GCC, particularly in the UAE, other cities in the region are investing heavily to boost their own offerings in the tourism, entertainment and leisure sectors. With the loosening of restrictions, developers in Saudi Arabia have begun investing heavily in these sectors, while Oman continues to see investment in hospitality and tourism-focused projects. However, if we look closer to home, we find that the UAE capital of Abu Dhabi is undergoing its own drive towards turning itself into a destination that will attract visitors from across the globe, albeit for very different reasons compared to Dubai. While the Sheikh Zayed Mosque is probably the most easily recognisable tourist landmark in Abu Dhabi, it is rivalled by the likes of Louvre Abu
Vibrant ecosystem Fouad Mashal says that Al Qana will create a vibrant ecosystem for businesses, creating a complementary mix that caters to the many varied communities and visitors to the lifestyle destination.
2.4km total length of the Al Qana waterfront
Dhabi, Ferrari World and Yas Island, among many others. That list could soon be supplemented by the launch of a new dining and entertainment destination. Set to open in Q4 2020, Al Qana is an entertainment and dining destination being built along 2.4km of waterfront, and its offerings have already begun to cause a stir in the regional and international tourism markets.Not only will the project offer visitors a range of F&B and leisure options, it will also include a marina, the largest stand-alone cinema in Abu Dhabi and, most intriguingly, the Middle East’s largest aquarium. This is in addition to facilities such as a fitness
and wellness hub, a skatepark, and family and community social spaces. As the targeted opening date for the project approaches, the developer, Al Barakah International Investment, says 52% of the leasable space has been signed over to entertainment and anchor options. This will allow the developer to move towards concluding what it calls “attractive and distinct concepts” in the remaining available spaces. “Al Qana plans to attract more than 150 must-see concepts across 11 blocks with a total GLA (gross leasable area) of 60,000sqm. We are aiming to create a vibrant ecosystem for businesses, whether they are F&B providers, recreational outlets or wellness hubs,” says Fouad Mashal, CEO of Al Barakah International Investment. “It is important that there is a complementary mix catering to the many varied communities and visitors who will make Al Qana such an exciting lifestyle destination.” Given the scale and ambition of the Al Qana project, Big Project ME caught up with Mashal to discuss the vision and strategy behind the destination, and to understand the role the project will have in the greater scheme of Abu Dhabi’s ambitions and targets. “Abu Dhabi’s future is flourishing with investment opportunities,” Mashal says. “In line with the capital’s vision for 2030 and the Tomorrow 2021 Plan,
Al Qana is a destination that will play a key role in supporting the government to realise its vision of enhancing Abu Dhabi’s status as one of the world’s most popular destinations for business, lifestyle and entertainment” December 2019 | MEConstructionNews.com
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We built Al Qana because we identified a demand in the market for such a social and recreational project in the capital. It is our flagship project and once completed, our priority will be to keep enhancing it and adding value” Al Qana is a destination that will play a key role in supporting the government to realise its vision of enhancing Abu Dhabi’s status as one of the world’s most popular destinations for business, leisure, lifestyle and entertainment. “We are fortunate in Abu Dhabi to have major landmarks dedicated to leisure and entertainment. Al Qana will become a new landmark, one that is introducing a new concept. It will create a vibrant ecosystem for Abu Dhabi’s community, who are seeking an exciting waterfront destination in the heart of the capital. “Al Qana’s features are aimed at encouraging social interaction and
providing a healthy, balanced lifestyle, while also contributing to the happiness of residents and visitors. This aspect of the development is essential, as happiness and well-being rankings are rising in importance as measures of Abu Dhabi’s health, prosperity and success. This is also what encouraged us to dedicate more than 50% of the leasable space at Al Qana to entertainment.” Established more than 40 years ago, Al Barakah International Investment has long invested in key sectors of the economy. Together with its sister company, Al Barakah Investment Holding International, it has enjoyed a successful rise as a major player in the
70% National
Aquarium is currently at 70% completion First venture The Al Qana development is Al Barakah International Investment’s first venture into the leisure and entertainment sector.
development of the UAE’s economic life. Its diverse investment portfolio includes real estate development, including the construction and management of residential towns, as well as projects in the tourism, hospitality, retail and services, and health and medical sectors. Yet this is the company’s first venture into the leisure and entertainment sector. Mashal explains that this is an exciting and promising area of investment, as in recent years Abu Dhabi’s government has been ramping up its efforts to establish the capital as the ultimate entertainment destination.
MEConstructionNews.com | December 2019
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IN PROFILE
Building the Bridge “As a group, we’re not limited to this sector for further growth and will consider investments that will positively contribute to our community and the Abu Dhabi economy,” he says. “Abu Dhabi aims to cement its position as one of the most liveable cities in the world and the ultimate destination for entertainment. Therefore it is important to create spaces in the capital that encourage social interaction and provide residents with a healthy lifestyle that contributes to their well-being. Al Qana was designed to support this vision. “It is a landmark that will be positioned prominently in the social fabric of Abu Dhabi, nearby the heart of the new city. It will also be close to other major developments and attractions such as Warner Bros, Ferrari World and Louvre Abu Dhabi, while it will also have a direct eyeline view of Sheikh Zayed Mosque.” Despite the project having to compete with destinations in neighbouring cities, Mashal insists that Al Qana will be complementary to these offerings and remains confident in the project’s viability. “There is no doubt that the UAE is providing world-class entertainment and is seeking to promote an integrated concept of well-being. Al Qana aims to enhance the quality of life in Abu Dhabi by improving the recreational, cultural, sporting and active initiatives in place, and thus complementing the existing entertainment landscape in the country,” he explains. The massive development has already begun to receive international recognition as a destination of choice for visitors, with Mashal revealing that a range of international and local brands have expressed an interest in being part of it. With construction scheduled to be completed in Q4 2020, he says all 11 blocks of the destination are currently under construction, while the massive National Aquarium is 70% completed, putting that particular aspect of the project ahead of schedule. Although work is progressing smoothly, Mashal says the developer and project team have had to overcome December 2019 | MEConstructionNews.com
As part of Al Qana’s offerings, Al Barakah International Investment has begun construction on a concept known as The Bridge Wellness Hub, one of its seven destinations. The Bridge is an integrated lifestyle wellness hub designed to be a disruptive space within its industry. The project expects to open its doors in Q4 2020 to coincide with the grand opening of Al Qana, the developer said in a statement. The developer says the concept of The Bridge comes from a combination of two ideas. The first is a space that bridges all aspects of one’s life, work, play and personal and physical development. The second is the combination of science and art to deliver a superior experience that is design-driven and intuitive, yet grounded in academic research and delivery of real results. With a total space area of over 8,000sqm, The Bridge will feature seven service tracks (Move – Pause – Taste – Seek – Choose – Expand – Learn), combined into a customised individual journey spread across three floors
and a roof garden lounge. To support the development of the centre, over 150 worldclass employees and experts are being brought into the project, Al Barakah says. “The Bridge is set to become the largest wellness offering in the Middle East. We joined forces to disrupt the market and introduce to Abu Dhabi an innovative concept that aims to improve the quality of life/well-being of residents by offering a new lifestyle journey. We learned from our founding father the late Sheikh Zayed that the happiness of our communities is central to the development of our nation,” says Fouad Mashal, CEO of Al Barakah International Investment. “Abu Dhabi has already taken great strides in promoting the importance of physical activity. We are confident that The Bridge and the overall Al Qana project will play a key role in cementing Abu Dhabi’s position as one of the most liveable cities in the world and the ultimate destination for entertainment and well-being.” “There’s a growing quest for wellness in our societies, and
this is becoming a worldwide phenomenon and a big shift towards better lives. A cognisant and well-informed healthy community can lead in the powerful transformation of an entire city and empower its people to lead in vibrant and progressive self-fulfilling constructs. According to the Global Wellness Institute, wellness is now a $4.2 trillion industry,” adds Khalid Nahhas, founder of The Bridge. “Our partnership with Al Qana aims to bring to the capital a lifestyle destination that will deliver a customer experience that is no less than profound. The Bridge has been conceived as an architectural marvel that uniquely includes the essence of what inspires people to build their best selves. We have crafted each of the seven tracks from the best school of thoughts around the world, to ensure we nurture the community.” The Bridge also supports the National Strategy for Wellbeing 2031, an initiative recently adopted by the UAE Cabinet in an effort to promote an integrated concept of wellbeing and make the UAE a global leader in quality of life.
IN PROFILE
Al Qana plans to attract more than 150 must-see concepts across a total GLA of 60,000sqm. We are aiming to create a vibrant ecosystem for businesses, whether they are F&B providers, recreational outlets or wellness hubs” significant challenges along the way. “Such an important project doesn’t come without its challenges. We are building a social dining and entertainment destination with high expectations from nationals,
residents and government officials as well. This is the reason why we’ve worked so hard to hire experienced and talented staff,” he explains. “We’ve also partnered with worldclass companies from around the world
Wellness focus Al Qana has teamed up with The Bridge Wellness Hub to create a destination focused on all aspects of visitors’ lives and well-being.
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to raise the quality of the project. We aim to exceed expectations by delivering a unique destination that will provide an unparalleled experience to visitors and make them feel rejuvenated, excited and alive. “We built Al Qana because we identified a demand in the market for such a social and recreational project in the capital. It is our flagship project and once completed, our priority will be to keep enhancing it and adding value. We’ll also keep exploring opportunities in the market and will communicate on any plans in due time. “The vision behind the project is for it to become the ideal destination to get away from the busy city. That is why we conceptualised it as a waterfront social dining and entertainment destination. It is important to have a complementary mix, offering visitors and residents an exciting lifestyle journey,” he reiterates at the conclusion of the interview.
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September2019 December 2019| |MEConstructionNews.com MEConstructionNews.com
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Etihad Rail Stage 2 (Package A) DEVELOPER: Etihad Rail JOINT VENTURE CONTRACTORS: CSCECME and SK E&C TOTAL LENGTH OF PACKAGE A: 139km
The Next Step
WITH THE LATEST ROSTER OF CONTRACTS NOW AWARDED FOR ETIHAD RAIL STAGE 2, BIG PROJECT ME SPEAKS TO CSCECME’S ALAM GIR KHAN ABOUT THE CHALLENGES AND LOGISTICS OF THIS CRITICAL LINK IN THE UAE TRANSPORT INFRASTRUCTURE MEConstructionNews.com MEConstructionNews.com| |September December 2019
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PROJECT PROFILE
hina State Construction Engineering Company (CSCEC) is no stranger to large-scale infrastructure projects. With a portfolio that includes the widening of Emirates Road, the complex multilayering of Wafi Bridge and the Palm Gate development, it’s also a division of arguably the world’s largest constructor, China State Corporation Beijing, a Global 500 player responsible for three of the world’s 10 highest super-talls. Now, with the joint venture between CSCEC and South Korea’s SK Engineering and Construction (SK E&C) being awarded a contract for Package A of Etihad Rail in Abu Dhabi, there is every opportunity for the well-resourced Asian titan to play to its core strengths. The project includes earthworks, bridges, tunnels, track-laying and links to Stage One of Etihad Rail, requiring 1.3m tonnes of ballast, more than 400,000 concrete sleepers and 33,000 tonnes of rail. Package A of Stage Two connects Ruwais with Ghuweifat on the Saudi border and includes all design and build, civil and track works along the
America is a good example. It was the connectivity that the railways brought – joining both sides of the country and all the communities in between – that really led to the economic growth and expansion of the nation. The Gulf Railway will play a powerful role in enabling the final stage of development for the GCC nations, helping them trade better and improving their access. The railway is critical to that expansion.“You also have to remember that on a global average, rail is also the cheapest and safest means of travel – it really opens up the possibility of long-distance travel to almost everyone, whatever their income.”
Critical connection Package A of Stage Two provides arguably one of the most critical sections of the Gulf Railway in terms of volume of traffic.
65% Percentage of mechanised work on the project
139km network line, providing arguably one of the most critical sections of the Gulf Railway in terms of volume of future passenger and freight traffic. Big Project ME spoke to CSCEC project director Alam Gir Khan about the logistical preparations and construction hotspots that an undertaking on this scale inevitably involves. First things first. What is CSCEC’s take on the contribution that the Gulf Railway will make to the region as a whole? “If you look at the world’s most developed nations,” says Alam Gir Khan, “it’s clear that the railways have played a major role in building their economies.
WHEN WILL THE PROJECT BEGIN? “Actually, in essence it already has. We are now preparing the first earthworks stages, in preparation for concrete works commencing January/February. It’s a full design & build project, and although officially commencing on March 19, preparation is vitally important, so aspects such as sleeper production are already underway. At this stage, we are ourselves purely responsible for Stage 2A, but remember that Etihad Rail has already set out a full blueprint for 2B, 2C and 2D. “With a project such as this, there are three payment milestones, but beyond that everyone is of course focused on giving full handover to Etihad Rail. So our experience at planning and delivering complex projects is essential.
Passengers will be able to travel to their destinations at 220km/h. What we’re doing now is ensuring that all the fundamentals are in place to make that new level of connectivity as safe and convenient as possible” September2019 December 2019| |MEConstructionNews.com MEConstructionNews.com
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You also have to remember that on a global average, rail is also the cheapest and safest means of travel – it really opens up the possibility of long-distance travel to almost everyone, whatever their income” “Thanks to our parent business, we of course have the resources and backing to ensure smooth delivery throughout – this again is a vital factor with a project of this scale. “I can also tell you that the head office in China is 120% committed to this project and its goals and sees it as one of the company’s most significant outlier projects globally.” THE HIDDEN COMPLEXITIES While the track being laid is standard gauge (1,435mm), that’s just about all that is standard on a project with so many diverse responsibilities. “Keep in mind that there are many stakeholders, requiring very complex coordination and a consistent, seamless interface throughout the work,” says Khan. “We have to communicate professionally with all stakeholders and conform to their procedures. Everyone has their own priorities and timeframes, and we have to ensure that these fit in with the overall blueprint and our deliverables to Etihad Rail. “This is particularly challenging with complex structures such as bridges and interchanges, where coordination across different aspects of the build is key. Of course, we ensure that all parties work to accepted international standards throughout. The main criteria we work to is the AREMA standard, followed throughout the GCC, but many individual
139 Length of
the line section CSCECME is working on, in km Working together The number of stakeholders on the project requires consistent coordination and conformance to procedures.
elements and materials of course have to align with ISO guidelines.” Environment & Sustainability Since the initial launch of the Gulf Railway concept, all the key stakeholders have emphasised the importance not only of minimising environmental impact (the project traverses some of the world’s most pristine desert), but also of setting extremely high on-site health & safety standards. “All the environmental licenses have already been taken care of,” says Khan, “and we are also ensuring that work starts early in the morning with a long gap during the hottest peak hours, resuming late afternoon.
Wherever possible, work is undertaken at night, but that’s not always feasible, especially for some of the more complex engineering procedures. “Physical handling on-site will be kept to a minimum. About 65% of the work is mechanised, and physical work is restricted almost completely to loading and unloading procedures. Of course, we will be using the most up-to-date track-laying machinery – our key piece of equipment represents an investment of almost $1 billion! “We also ensure that shifts are never more than eight hours; we work to a rota of two or three shifts per day, depending on the scale and schedule of particular elements, and there will be up to 1,200 men on-site once the project is at full throttle.” AT THE LEADING EDGE It’s often forgotten that the Gulf Railway isn’t just a means of connecting the GCC member states, but an extremely high-tech system that in terms of speed and ride quality will be on a par with the best the world has to offer. Alam concludes: “When it’s completed, the line will stretch from Kuwait City to Muscat. Passengers will be able to travel to their destinations at 220km/h. What we’re doing now is ensuring that all the fundamentals are in place to make that new level of connectivity as safe and convenient as possible.”
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BPME AWARDS 2019
Celebrating Excellence
Big Project ME Awards 2019 MIDDLE EAST
Big Project ME Awards returns to celebrate the excellence of the regional construction sector in 2019
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he 2019 edition of the Big Project ME Awards took place on November 26 at The Oberoi Hotel in Business Bay, Dubai. The event attracted a crowd of more than 250 construction industry professionals, with CEOs, managing directors, division heads and other senior figures in attendance to celebrate the successes of the regional construction industry this year. Held annually, the event was hosted at The Oberoi for the first time, and the area’s stunning architecture provided a fitting backdrop for the night’s proceedings.
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December 2019 | MEConstructionNews.com
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Having grown into one of the most recognised and well-regarded award nights in the construction industry, this year’s event featured submissions from a raft of contractors, subcontractors, developers, consultants, suppliers and manufacturers from across the GCC and MENA region. This year’s awards saw more than 140 nominations filed for consideration across 23 categories, with several high-profile contractors and developers vying for the biggest prizes on the night. Among the nominees for the awards were local government authorities and bodies, including Dubai Municipality,
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Project superstars The Big Project ME Awards 2019 saw a number of highquality projects winning on the night.
23 industry
awards were presented this year
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the Ministry of Infrastructure Development and Sharjah Electricity and Water Authority. “The Big Project ME Awards 2019 was another massive success for us, and we’re extremely delighted with the response the event has had. The high attendance levels and engagement we saw on the night showed us how valued these awards are by the region’s construction sector. “I’m delighted to see that we had a number of first nominees and winners taking part this year,” said Raz Islam, managing director of CPI Trade Media, the organisers behind the event and publishers of Big Project ME.
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The two biggest awards of the night went to ASGC, the Dubaibased contractor, which was named Contractor of the Year, while its work on the Coca-Cola Arena was Project of the Year. It also picked up the Excellence in BIM award for its work on implementing the technology. Other big winners were ALEC, which won the Skills Development Programme of the Year; Hercu Viljoen, Big Project ME Executive of the Year; and ALEMCO, MEP Contractor of the Year. This year’s judges were Chris Seymour (Mott MacDonald), Joe Tabet (JT + Partners), Matthew Sexton (Say Studio), Nicholas Harris
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Out in force Several high-profile individuals from the construction industry were present on the night.
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(Omnium International), Paul Bogan (Serco ME), Roger Griffiths (HeriotWatt University) and Tim Martin (Gensler), as well as Jason Saundalkar, editor of ME Consultant, and Gavin Davids, editor of Big Project ME. The sponsors for the Big Project ME Awards 2019 were: Platinum Sponsor: Ithra Dubai; Gold Sponsors: Airolink, ALEC, ASGC and Eltizam Asset Management Group; Silver Sponsors: AESG, CCS, Hadley Group, Hill International, Voltas; Bronze Sponsor: 12d Model. The awards’ Intelligence Partner was ProTenders, while the Knowledge Partners were CIOB and RICS.
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BPME AWARDS 2019
Big Project ME Executive of the Year
Big Project ME Woman of the Year
NOMINEES: X Kenneth Rob Davies – MD, Depa Interiors X Yu Tao – President and CEO, CSCEC ME
NOMINEES: X Eman Al Mansoori, Ministry of Infrastructure Development X Nadia Zaal, Al Barari
WINNER: Hercu Viljoen – MD (Related Businesses), ALEC This award recognises the individuals shaping the way the regional construction industry operates. Winners here are not just admirable champions of their business and its commercial deployment in the region, but also know how to change and transition an organisation from within. The judges believed that Hercu Viljoen, managing director (Related Businesses), ALEC, was the outstanding candidate because of the role he has played in transforming the
way his company operates. He systematically enhanced how teams can communicate at all levels and consistently aligned a staff of thousands with new, emerging values and cultures designed to encourage empowerment and employee cohesion. The judges also believed that Viljoen – regarded as a leader within his company – provides vision, direction and leadership to the executive teams, as well as having a keen ability to identify the right opportunities to grow and expand the company’s business portfolio. The judges’ view was that he has a strong commitment to the development of the local industry, as a keen communicator of best practice and the highest standards of integrity. As Viljoen was regrettably unable to attend in person, his award was kindly collected on his behalf by Sean McQue.
December 2019 | MEConstructionNews.com
WINNER: Farah Zafar, AMAALA Farah Zafar, chief legal officer at AMAALA, has been instrumental in the growth and success of prominent development companies in the region, while also leading government transactions for and on behalf of government entities in Dubai, Oman and Ajman. She is currently working to establish the governance and regulatory framework required for new destinations in the Kingdom of Saudi Arabia, together with all the supporting legal, governance, commercial, development and infrastructure aspects the projects will require.
Zafar said: “It has been 30 years of hard work and it’s amazing to be recognised within the world of construction, infrastructure development and projects in the Middle East, which has predominantly been a maledominated environment. AMAALA is a PIF project and we are causing so many strides in female empowerment and employment, so this award really solidifies the fact that if you work hard and you are dedicated and focused, then you can be recognised in the industry. “I think Saudi Arabia is the future of the Middle East and in 2020 it will excel in every form, be it sustainability, diversity or empowerment. We are handling construction, infrastructure and development in a wholly unique manner, so I look forward to implementing all of those in 2020,” she told Big Project ME.
BPME AWARDS 2019
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Contractor of the Year NOMINEES: X ALEC X CSCEC ME X Multiplex ME WINNER: ASGC This category proved to be the most hard-fought of all, with the judges requesting that all shortlisted firms be given honorary mentions for their work. Along with a high level of technical expertise throughout,
there were exceptional project portfolios and a strong commitment to staff welfare and safety. Yet ultimately, ASGC triumphed as a result of its deployment of state-ofthe-art technology, sustainability and employee development – particularly looking at the scale and logistical demands of its projects. “This is one of the top prizes in the construction industry and we are really appreciative that we have won for this category, it’s a pride for us,” said Abdulaziz Mohamed Binshafar, vice president at ASGC.
MEP Contractor of the Year NOMINEES: X CSCEC ME X Emirates Falcon Electromechanical Company X Voltas WINNER: ALEMCO In a category where technical excellence and professional capability have always been at the forefront of the judges’ criteria, ALEMCO was simply pre-eminent – especially given its pristine
record of delivering projects on time and on budget. The company also proved to be exemplary in working in a collaborative manner with all key stakeholders. “We have got a very firm strategy of what we plan to do going forward into the future, and we are a business that supports our key clients. We like to deliver high-end projects within time and budget, and we spend a lot of time developing good people in the business, that’s our USP to success,” said Bjorn Viedge, commercial manager for ALEMCO.
Civil Contractor of the Year WINNER: CSCEC ME The judges best described the status of the winner when saying that it’s a name “almost synonymous with infrastructure and transport construction in the UAE”. CSCEC ME is not only working currently on premium projects such as Etihad Rail, but has also delivered vital backbone infrastructure for iconic residential developments like Akoya Oxygen – as well as classic largescale programmes including the
improvement of Al Awir Road and the Parallel Roads project. “It’s really a big surprise for me to win this award, this recognition comes after 14 years of hard work in the region. We established our infrastructure division in 2006; we have a very strong team and we are very optimistic for this market, for Dubai and UAE, and we have done a lot of projects for Expo 202o. We will keep focusing on building stronger relationships with all our clients,” said Wei Chuanhai, president assistant for CSCEC ME. MEConstructionNews.com | December 2019
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Sustainable Contractor of the Year NOMINEES: X Ssangyong Engineering & Construction Company WINNER: Multiplex ME Sustainability can’t simply be an add-on. This was the standard emphasised by Multiplex, which has not only painstakingly implemented core international standards, but has actively worked to offset any environmental damage that a project may cause.
“This win definitely showcases the holistic commitment of the organisation towards sustainability. We are actually very passionate about introducing a positive change, even for influencing the design of buildings that we construct, and creating a more sustainable asset base in the region. It’s definitely encouraging to be recognised for the efforts that the business has invested in to create a positive impact,” said Tushant Suri, head of Sustainability (Environmental & Social) for Multiplex.
Fit-Out Contractor of the Year NOMINEES: X A&T Interiors X ALEC Fit-Out X Pinnacle WINNER: Depa Interiors One of the factors distinguishing Depa Interiors has been its delivery of an exceptionally wide-ranging project portfolio, with diversified expertise allowing it to be a comprehensive, one-stop shop for the most complex projects. In
Mixed-use Project of the Year WINNER: Ithra Dubai – One Za’abeel In a category awarded by the editorial team at Big Project ME, One Za’abeel was recognised not only as a marvel of engineering, but as a symbol of Dubai’s ambition, innovation and pioneering spirit – a superb mixed-use project set to become a destination that will define Dubai’s skyline for years to come. Also using a range of best practice methodologies, One Za’abeel is aesthetically bold, and
set to become an icon of worldclass architectural appeal. “To win once, it’s a great honour, but to win twice, it’s definitely an affirmation of the work we have been doing. If we actually focus on what the attributes are of those challenges, we can then build on those and take advantage of those opportunities. The fact that we have developed a city that’s known worldwide is a testament to the direction that we have had from our leadership,” said Raad Jarrah, chief development officer for Ithra Dubai.
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2018/2019, the spectrum of client projects ranged from Dubai Expo 2020 through to international hotel brands – and even metro stations in Saudi Arabia! The judges also praised Depa Interiors’ exceptional quality of work, as well as its innovative working methodologies. “It is sensational to win two years in a row and is just a reflection of the team we have got. We have also got a lot of projects that are coming to completion in the next six months,” said Rob Davies, managing director at Depa Interiors.
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Skills Development Programme of the Year NOMINEES: X Eltizam – Employee Happiness Strategy 2019 X Al Ghurair Group – Skills Development Programme WINNER: ALEC – ALEC EVOLVE A unanimous choice from the judges, ALEC’s win is testament to how well the company understands the importance of staff development and how much value it places on taking
an active role in enhancing the experiences, skills and knowledge of the people within the business. “This award reflects the investment and the commitment made by the management in developing our people through all the phases, it’s quite an organic development. However, 2020 is going to be a challenge for the construction industry, so we need to be more efficient,” said Statia Breen, head of People and Culture for ALEC.
Sustainable Government Department of the Year NOMINEES: X Sharjah Electricity and Water Authority WINNER: Dubai Municipality – Department of Sewage Treatment Plants and Networks Through its work, Dubai Municipality’s Department of Sewage Treatment Plants and Networks demonstrated to the judges that it is taking on
significant sustainability challenges in the city through visionary strategies in the water sector. “The vision of sustainability is from the Dubai government itself, and we as DM need to follow up on these constant changes. We need to make projects and facilities sustainable and cost-efficient, so we try to balance sustainability with the proper investment in projects,” said Abdulsalam Al Mehairi, manager of the Dubai Municipality technical support and administrative section.
Product Innovation Award NOMINEES: X Emirates Falcon Electromechanical Company – Prefabricated MultiService MEP Modules WINNER: Topcon Positioning ME – GTL-1000 Topcon has developed a product that can integrate with software to generate automatic construction verification, to create a complete package that provides users with a “live, as-built
model of their project”. With efficiency becoming increasingly important in the industry, Topcon impressed the judges due to its ability to reduce errors made on a construction project. “Topcon has been innovating for more than 85 years in construction and engineering for infrastructure products and solutions, so it’s a great pleasure and we are very excited to win this award, particularly for this product, since it’s relatively new,” said Shaheed Rahman, marketing manager for Topcon. MEConstructionNews.com | December 2019
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Project of the Year NOMINEES: X DWTC – 25 Hours Hotel and Offices 4&5 Project X Cimolai Rimond ME – Al Wasl Trellis Structure, Expo 2020 X ALEC – Mobility Pavilion, Expo 2020 WINNER: ASGC – Coca-Cola Arena The biggest award at the Big Project ME Awards 2019 honoured ASGC’s Coca-Cola Arena. Even among a shortlist of projects
selected as outstanding, Dubai’s first-ever multi-purpose arena is altogether in a league of its own. What notably stood out for the judges was the sheer technical excellence of the structure, with leading-edge technologies coming into play at every stage to ensure a highly successful completion. “We have to work hard to be on stage next year, it’s not easy to win this award and it’s more difficult to maintain it!” exclaimed Abdulaziz Mohamed Binshafar, vice president at ASGC.
Excellence in BIM Implementation NOMINEES: X ALEC – Mobility Pavilion, Expo 2020 X KEO International Consultants – The Address Harbour Point WINNER: BAM International – Yas Arena In the case of BAM International which won for its Yas Arena project, there was an exceptional use of BIM technology as a planning and collaborative tool for the entirety of the project – critically important to
delivering a staggeringly complex project in close proximity to existing developments and infrastructure. “As a company it is important that we evolve with the times, so we take great pride in our innovative spirit, and it is always a fantastic opportunity to present ourselves in these award shows and present our ability. “Each year we see how we can evolve, improve and take it from there – it’s a step-by-step process,” said Eoghan O’Neill, project manager for BAM International.
Sustainable Project of the Year NOMINEES: X KEO International Consultants – Expo Village X ASGC – Mohammed bin Rashid Library X Majid Al Futtaim Properties – Tilal Al Ghaf WINNER: Nestlé Middle East – Al Maha Factory The winner, Nestlé Middle East’s Al Maha Factory, was chosen for its commitment to tackling December 2019 | MEConstructionNews.com
climate change and adopting renewable energy policies at its manufacturing facilities in Dubai. “We are thrilled to receive such an outstanding award, and grateful to have an amazing team to achieve our sustainability goals. Thank you for recognising our commitments to excel in manufacturing excellence through environmental initiatives, and in particular to lead the way in the adoption of renewable energy in the industry,” said Myra Malik, project lead – Environmental Sustainability for Nestlé Middle East.
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Design and Build Project of the Year NOMINEES: X HPBS – Arab Academy of Science, Technology and Maritime Transport X ASGC – Coca-Cola Arena X ALEC – The Residences at Marina Gate I & II and Jumeirah Living Marina Gate WINNER: McLaren Construction – Al Karamah Private School Al Karamah Private School is the first education facility in the country
serving local pupils with Autism Spectrum Disorder – and what’s more, an exceptional working collaboration with stakeholders led to the project’s design and delivery in an astonishing 4.5 months! “Even though we had a good team, it was a constrained project with extremely tight timelines, but we all worked collaboratively to deliver what the client had asked for. At the moment we are in talks to build the next phase of the project,” said Fergus O’Boyle, senior project manager for McLaren Construction.
Excellence in HSE on a Project NOMINEES: X AF Construction – Dubai Creek Horizon X Majid Al Futtaim Properties – Mall of Oman X Shapoorji Pallonji Mideast – Oman Convention Centre WINNER: Kier Dubai – Dubai Harbour Infrastructure and Logistics The winner, Kier Dubai, was not only compliant with the highest international and local
standards of health and safety, but showcased a strongly progressive attitude, led from the top with board commitment to an effective health and safety agenda. “We will continue with the strategies that we have and those that we have implemented on-site. We are also building up a system where we look after the welfare and well-being of our employees, and from that our employees know that we are a company that cares,” said Ian Sweeney, senior works manager for Kier.
Infrastructure Project of the Year NOMINEES: X ASGC – Dubai International Airport Improvement Works X CSCEC ME – Parallel Roads Bridge X Ministry of Infrastructure Development – Shamal Bridge WINNER: Khatib & Alami – Al Madinah Al Munawwarah Treatment and Sludge Management Project Despite an impressive list of shortlisted names, the judges were
unanimous in their choice of winner, highlighting not only the scale and complexity of the project, but also its absolute necessity. This is a life-critical development in line with Saudi Arabia’s Vision 2030 objectives to help improve water supply and sanitation in Mekkah. “It’s a big motivation for the team, the management and the client. This will definitely make it more well-known to everybody in the region that we do strategic and winning projects,” said Mohannad Faris, associate at Khatib & Alami.
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Technology Champion of the Year WINNER: Bashar Abou-Mayaleh – MD, Concrete Industries Complex The editorial team at Big Project ME chose Bashar Abou-Mayaleh as the Technology Champion of the Year in recognition of his efforts to promote the use of technology within his company, and for being in the vanguard of technology adoption in the industry. His commitment to overseeing the transformation of his company into one of the most accomplished
users of construction technology in the region, particularly in the concrete sector, is commendable. “We always believe in technology in our group, and we believe that technology will lead us forward and help us position ourselves as one of the leading companies in the industry. “There are a lot of projects available now in the precast field, and precast is really helpful in this matter because it can assure quality and completion on time,” said Abou-Mayaleh in a statement.
Business Leader of the year WINNER: Chris Roberts – CEO, Eltizam Asset Management Group Big Project ME decided on Chris Roberts as the winner, based on the scale and breadth of his ambition and vision. Not only did he oversee a 20% growth rate in H1 2019, but he has also helped drive the company’s expansion into new territories and market sectors, including a foray into North Africa. Moreover, he is a passionate advocate for the use and implementation of technology
in the industry, during both the construction of buildings and the operations and maintenance phase of an asset’s lifecycle. “We are going through a lot of future acquisitions for the next 12 months, as well as some very big projects we are working on at the moment. It’s still very tough in the market at the moment, but I think the opportunities in the future are very, very strong,” said Chris Roberts, CEO of Eltizam Asset Management Group, after picking up his award.
Sustainability Programme of the Year NOMINEES: X Al Futtaim Construction – Corporate Social Responsibility Initiative X Emirates GBC – UAE’s Green Key Programme WINNER: Multiplex – Science Based Targets The judges felt that Multiplex has demonstrated its commitment to sustainability by being the first contracting business in the Middle East to set and establish December 2019 | MEConstructionNews.com
a set of short-, medium- and long-term targets, in alignment with IPCC 2018 guidelines. “One of our key pillars is to create a positive impact on people, communities and the environment we operate in, and we have chosen a scientifically driven methodology to commit and mitigate our impact on climate change. And it’s not something we want to restrict to ourselves, we are more than happy to share it with our partners and peers,” said Tushant Suri, head of Sustainability at Multiplex ME.
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Excellence in BIM NOMINEES: X ALEC X HPBS WINNER: ASGC The Excellence in BIM award recognises the work ASGC has done with BIM across the organisation. The work done by the company showed the judges that it has a clear understanding of using BIM across all levels, from top to bottom, and throughout all its subsidiaries.
“It’s the first time we are nominated for the BIM award. However, it’s our strategy to put technology ahead of everything in our work, and we feel that our effort has really paid off by receiving this nomination and this award, and we will keep investing in technology,” said Abdulaziz Mohamed Binshafar, vice president at ASGC, after collecting the trophy. “It’s going to be a busy year for ASGC and the construction industry, especially for contractors, with Expo 2020 just ahead of us,” he added, while speaking to Big Project ME.
Personality of the Year WINNER: Dr Anil Pillai – CEO and MD, Airolink Construction Group Another award selected by the editorial team at Big Project ME, Personality of the Year was bagged by Anil Pillai, CEO and MD of Airolink. He has seen his company grow from a tiny contractor working on boutique projects to an up-and-coming player in the local construction market, working on several high-profile projects in Dubai.
“We will nearly be at $2bn as project expectation by the next year. Manpower-wise we are around 3,500, and we want to employee around 5,000 people, so we are growing. It’s an honour to receive this award and it gives a boost to our company. Our strategy for the next three years is to get more projects, and we are planning for $5-10bn projects in the market. It’s natural to have ups and downs in any industry, but we are expecting the industry to become better in the next three years,” said Pillai.
Developer of the Year NOMINEES: X Lootah Real Estate Development X Select Group X Sobha Realty WINNER: Ithra Dubai After much debate and discussion, the judges said they were impressed with Ithra Dubai for its contribution to the enrichment and strategic development of the city, through its state-of-the-art infrastructure and architecture.
“It’s an honour to be nominated and actually win this award. This recognition to us as a team, young as we are in terms of our achievements, yet the focus that we have put into the projects that we have developed is validated by our peers. This award will add more determination to the work that we have done and achieved to date, and it gives us the motivation to continue the journey and focus on what more we can deliver as we go down the road,” said Raad Jarrah, chief development officer for Ithra Dubai.
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CASE STUDY
The Green Planet
The Green Planet – leading the way in sustainability MIDDLE EAST
Big Project ME and Armstrong Ceiling Solutions profile the work done by the commercial ceiling solutions provider on Meraas’ The Green Planet, an indoor tropical rainforest in City Walk, Dubai
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ver the last five years, the Middle East has made great strides to develop greener buildings, with more and more architects and designers investing in sustainable materials and ensuring buildings are Leadership in Energy and Environmental Design (LEED)-certified. According to a recent report, Dubai is currently ranked third in the list of global cities with the highest number of green buildings. This is certainly the case for The Green Planet, the first indoor tropical rainforest, which provides the people of Dubai with an opportunity to experience and gain a deeper understanding of the fragile ecosystem of the equatorial regions.
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PROTECTING THE ECOSYSTEM In 2017, Armstrong Ceiling Solutions, a leader in commercial ceiling, suspension systems and wall solutions, was tasked with providing innovative and beautiful solutions that would survive the structure’s simulated tropical environment while remaining safe and aesthetically pleasing for visitors. The project required specialist systems and materials that could withstand the constant high temperatures and humidity required by tropical plant life. In partnership with project architect Grout McTavish, Dubai property developer Meeras and a number of qualified experts and consultants, Armstrong Ceiling Solutions was able to provide a solution that not only
Specialist systems The project required specialist systems and materials that could withstand constant high temperatures and humidity.
60,000 size of The Green Planet structure in square feet
CASE STUDY
protected the ecosystem but contributed to creating a greener building too. IMPROVING SUSTAINABILITY WITH CEILING SOLUTIONS Using a variety of specialised materials, Armstrong Ceiling Solutions provided thoughtfully engineered metal and wood ceiling solutions for the radial walkways and video presentation rooms. It supplied its Metal R-H 200 material, certified by Cradle to Cradle – a globally recognised measure of safer, more sustainable products that support a circular economy and make a positive impact on society. Wood grille was one of the key materials used on this project. Wooden slats were strategically installed above the walkways to create impact and lead visitors through the structure. Fashioned from Ipe wood, wood slats are almost twice as dense as most woods, and up to five times harder. They are naturally resistant to rot, abrasion, harsh weather and insects, making for perfect high-humidity resistant ceilings that can endure the simulated weather conditions and constant wear and tear that the project demands. For back-of-house office areas, class A optima tegular glass fibre ceilings were used as they provide excellent sound absorption, an ideal solution for areas where individuals require increased silence for improved concentration. All these solutions have contributed to The Green Planet becoming a
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Experiencing rich biodiversity, visitors can connect with over 3,000 species of plants and animals which would have otherwise been inaccessible, helping to nurture a sense of respect towards these tropical organisms” Nurturing respect The Green Planet serves as an educational facility that connects visitors with the environment.
3,000
species of plants and animals inside the Green Planet
more sustainable building, with the design, construction and operation aimed at conserving energy. THE GREEN PLANET – LEADING THE WAY IN SUSTAINABILITY Located in City Walk, an outdoor retail complex in the heart of the city, The Green Planet is a 60,000sqft structure inspired by the idea of an origami-like glass cube. It surrounds and protects the structure’s core, a cylindershaped biome that houses the living environment for thousands of species. It comprises four floors (plus two below-grade spaces) that encircle a 25m-high life-sustaining tree – the largest
indoor man-made tree of its kind. Visitors enter the biodome at grade level into a mossy flooded rainforest floor where they find a giant aquarium containing stingrays, freshwater turtles and arapaima. Experiencing rich biodiversity, visitors can connect with over 3,000 species of plants and animals which would have otherwise been inaccessible, helping to nurture a sense of respect towards these tropical organisms and foster greater understanding for the importance of sustainability. Armstrong Ceiling Solutions is committed to making a positive difference in the lives of people – and The Green Planet symbolises this perfectly.
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EVENT REVIEW
BIM
ME BIM Summit 2019 MIDDLE EAST
Big Project ME covers the fourth edition of the BIM Summit, which discussed the farreaching impacts of intelligent modelling and the new technologies transforming the way we think about building cities
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eld at the Habtoor Grand Hotel in Dubai and organised by CPI Trade Media and Big Project ME, the fourth edition of the ME BIM Summit saw more than 200 of the GCC’s top professionals congregate to discuss the future of BIM technology and the built environment in the region. The event began with opening statements by Gavin Davids, group editor for Construction at CPI Trade Media and editor of Big Project ME. He was followed by Farah Kurdi from Mott MacDonald, who gave the summit chair address and said that the power of building information modelling (BIM) and city information modelling (CIM) comes from the way they empower people. “Digital twins are quickly becoming the go-to for creating robust models of an asset at various stages of its lifecycle. However, what are the key similarities and differences between digital twins and BIM, and how can the two be used together to ease the building process and benefit the
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built environment? Today’s summit is the apt forum to discuss these and similar issues of equal importance to construction and BIM professionals,” Kurdi remarked. PANEL DISCUSSION 1 With BIM now firmly entrenched in the regional construction industry, the first panel discussion focused on how technology can take the next logical step in its evolution and be applied to the planning and development of cities in the GCC. The panellists were Ahmed Abou Alfa from UAE BIM Association, Andrew Milburn from Godwin Austen Johnson, Juan Tena Florez from KEO International Consultants, Omar M Baghdadi from AECOM and Surinder Yadav from Shapoorji Pallonji ME. The topic of discussion was the relationship between BIM and CIM and how a holistic, data-driven approach can be implemented for city planning. The keynote panel, moderated by Kurdi, highlighted key themes such as the importance of data analysis
A paradigm shift As part of the first panel discussion, Omar M Baghdadi from AECOM said that while BIM is the origin of it, CIM allows you to look at cities from a more holistic point of view, which will eventually lead to a paradigm shift in how the entire process is viewed.
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experts took to the stage for the Summit’s panel discussions
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to measure health, happiness and well-being in smart cities, and how to tackle the challenges this poses. The 45-minute panel discussion began with Milburn envisioning a future where people involved with work are associated with intelligent models and technology, which we would think of as education and research today. He said: “For me, the power of digital technology is the way it can actually empower people, how it can democratise situations and create opportunities.” This led Baghdadi to talk about his definition of CIM. “BIM is the origin of it, but CIM helps you look at cities from a more holistic point of view, which will eventually lead to a paradigm shift in how we look at the entire process.” However, he pointed out that we are not there yet. Abou Alfa, asked about his interpretation of smart future cities, noted the harvesting and analysis of data. He explained that the future entails a collaborative platform which will give space to people, government entities
Right information One of the key principles of collaboration is getting the right information from the right people, at the right time, which means that information from design to construction should be accessible to everyone, panellists said.
200 delegates
from across the GCC attended this year’s Summit
and construction industry-related experts to create and innovate digitally. “The future of CIM will be data and data will be money. Who owns the data, will own the world!” “Since everything is integrated with smart city systems – the ability to gather information, and the problems that revolve around overpopulation and pollution – you get to know about the issues, and once the problem is identified, finding solutions is not that difficult. It’s usually finding the problem which is the problem,” added Yadav. Florez said: “Nowadays, with technology evolving rapidly, I believe that it’s an instrument of help to the challenges we have in order to achieve better CIM, and now there are new applications in the last few years that are helping it to move faster, and are also tackling challenges that we see in the market.” Here, Baghdadi made an interesting point on data and the right to privacy. “The main challenge moving forward is about privacy, because the biggest issue
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with that is how will there be a balance between the people that have the data and an individual’s right to privacy. Going forward it will be the biggest concern, as more and more people and things are getting connected.” PANEL DISCUSSION 2 How can digital twins technology be married to the BIM model to create robust data models that improve the performance of physical assets and mitigate issues that may arise during the design, build and operations phase? The panellists were Alexander Kolpakov from AECOM, Arsen Safaryan from ALEC Engineering and Contracting, Arsenious Abtnago from ASGC Construction, Barry Wormald from AESG Project Development Consultants, Damir Jaksic from KEO International Consultants, Naji Atallah from Autodesk and Nour H Kassassir from Parsons. The topic was the use of the digital twin concept to improve knowledge
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EVENT REVIEW
Panel 1 Thoughts: Farah Alkurdi
sharing and the decision-making process between digital and physical assets. The 45-minute panel was moderated by Craig Garrett from Bentley Systems, and focused on two key issues: using the digital twin concept to analyse the impact of decisions and visualise results; and using data gathered from digital twins in a BIM model. To begin the discussion, Garrett posed the question of whether digital twin technology is the next evolution – from CAD to BIM to digital twins? Kassassir said there is a need to talk about the challenges hindering the adoption of technology. “First, there is a lack of understanding of the value of technology, which cascades down to the ability of the supply chain to deliver and to innovate, because right now projects are procured due to services, as opposed to outcomebased. Everybody is risk-averse, so that stifles innovation and transparency, and everybody is working in silos. When you
The new RFPs come with a similar requirement, so the demand is obviously increasing, which means on the owner/ operator side there is more realisation of digitally compiled data. However, early engagement is still a problem” December 2019 | MEConstructionNews.com
The panel started with a thought-provoking idea about city information modelling (CIM). Is it all about data and data collection, or is it about the community collaborative process in building up a city? Is CIM the natural progression of BIM? Yes it is, and stakeholders are now looking at a holistic approach rather than an asset-based view, which is how we distinguish between asset and city. The panellists discussed whether city planning should be done by gathering data which will become a form of future currency, or whether to have crowd-sourced community planning. They agreed that CIM can be implemented in the GCC, which has been the case on certain projects throughout the region.There was a conversation about who the stakeholders engaged in CIM should be, and whether the traditional way is the right one. Should it be limited to urban planners, architects and engineers? Or should the community participate in the design of their cities? The panellists spent time discussing the social aspect of city design and why old cities are loved by crowds, as well as what we can do to implement
strategies to promote sustainability, wellbeing and connectivity. What is a smart city? This was much debated, with somewhat differing views. Is a smart city considered smart because of the availability of smart devices, or because of the connectivity and infrastructure available for the residents to use (smart users)? Flying cars were briefly mentioned, as one example of the various definitions of smart cities. How can we measure happiness and well-being? One panellist suggested that with the current form of social media and sharing of information, it should be simple to gauge the happiness factor of residents; or it could be done through the use of three icons to identify consumer satisfaction. It was an interactive panel, and although there were some disagreements, the diversity within the team created the output that you would expect. We all agreed in the end that CIM is the natural progression of BIM, but completely different in the way that the construction industry should take note of it. We are now in the era of designing smart cities that promote sustainability, well-being and happiness. Imagine the wide impact of this on society, and take it from there! Farah Alkurdi is Built Environment Sector Lead – ME at Mott MacDonald Limited.
work in silos, technology becomes a means to an end, it becomes useless.” Wormald agreed, adding that the problem is not with technology but with the way it is used. “Even after 34 years since I first worked with 3D drawings, we are still arguing if it can succeed, and we still can’t get coordinated drawings on a project. How are we going to achieve it in the next five or ten years?” Garrett made the point that with digital twins, it’s not just about design and build; it’s not just CapEx, it’s OpEx as well. They are talking about the real asset and its operational state, and creating a twin of that. However, Safaryan pointed out that in the last four years they have seen a dramatic demand in the increase of operation and maintenance data to be handed over in a model format. “The new RFPs come with a similar requirement, so the demand is obviously increasing, which means on the owner/ operator side there is more realisation of digitally compiled data. However, early engagement is still a problem.” Kolpakov said the operations team would be the owner of the digital twin dynamically linked to the asset. “They would want the design and construction data so they won’t have to build the BIM model themselves; they would also like to get it in a more intelligent form, unlike now, so they can take these data points and link it with the BMS system, SCADA system and almost create a digital twin, and they would be the one who would operate that model.” Atallah observed: “We are talking about a bit of clarity in the OpEx side, and we always say the value of BIM at the end of the day is for the owner, so maybe with that clarity the concept of BIM evolves into the concept of digital twins, and this is where the focus on the outcome becomes more relevant.” Abtnago said, “From a contracting point of view, all the stakeholders are not contributing to each other. As a contractor, we are the bridge between the two different phases. We are receiving the pre-construction phase outcome, and we are responsible to deliver what will be utilised in the operational phase as well.” The panellists further discussed the importance of creating a modelled asset
EVENT REVIEW
Panel 2 Thoughts: Craig Garrett combined with data – both historical and live – to predict the behaviour of assets, and agreed with Garrett’s conclusion that digital twins are the logical building block for building smarter cities. PANEL DISCUSSION 3 How can BIM be used to provide a digital representation of an active construction site’s physical and functional characteristics, and to provide fast, up-to-date information that improves its efficiency, performance and effectiveness? As discussed in the previous panels, BIM technology can help monitor and improve the layout of a job-site, boosting workplace efficiency and mitigating issues that arise during the operations phase. For the final panel discussion, Bahaa Ibrahim from Hard Precast Building Systems, Elena Salun from Cracknell, Joylyn Dela Cruz from Aurecon, Sheik Uduman from RSP and Dr Yasemin Nielsen from Heriot–Watt University Dubai talked about enabling better communication and collaboration with BIM technology. Nithin Thomas from Shapoorji Pallonji ME moderated the panel, discussing the applications of BIM and how it can help move elements of a project off-site and into the factory, as well as reducing the risk of errors and clashes through a common data environment. Ibrahim started the discussion by saying that from a prefabrication point of view, BIM was really very important in order for the industry to have the complete benefits of a prefabrication process. “It is very important to think about how to link the final product into the design stage, as well as work with other subcontractors, the main contractor and the client, since we start at the design stage. We are leading the subject by introducing the BIM model to all the stakeholders of the project, and we also advise them to start using the same and continue using it after the handover of the project.” From an architectural point of view, Salun said that even though there is awareness of what technology can do, it’s not completely understood by everyone. “We talk about BIM, technology and data; however, we keep doing business as usual. Moreover, the
I recently moderated a panel session on building information modelling (BIM) and digital twins at the 2019 Middle East BIM Summit. A panel session brings out the issues surrounding a topic and lets people discuss them with the invaluable shared experience of key industry representatives. Digital twins are the new hot topic in our industry. However, before we can discuss digital twins, we must put our diverse understanding of the term into context. As we have been trying to understand what BIM means to the industry, we are now facing the same dilemma with digital twins. A digital twin is a digital representation of a physical asset, process or system, as well as the engineering information that allows us to understand and model its performance. Typically, a digital twin can be continuously updated from multiple sources, including sensors and continuous surveying, to represent its near real-time status, working condition or position. A digital twin enables users to visualise the asset, check status, perform analysis and generate insights to predict and optimise asset performance.
Earlier in the conference, the concept behind digital twins was explained and backed up by sound case studies. Therefore, I was disappointed to hear how far behind the industry appears to be. Many of the panellists stated that the adoption of digital twin technology was more a future aspiration, rather than a current reality. However, we should not be too surprised. Until recently, BIM was considered the standard everyone was striving to obtain. Now, before many have achieved it, the goal posts have moved. Another key aspect is that digital twins account for the operational and maintenance aspects of a project which are often still not fully integrated into project thinking. Therefore, a wider appreciation of the whole project lifecycle is needed, in order to truly understand the process. It consists of a live feedback loop from operational analysis and sensors back into the virtual twin environment, which will help make better-informed decisions for better outcomes. Regardless of our current understanding, what became apparent in the discussion was that digital twins are set to take centre stage, advancing rapidly beyond BIM and enabling assetcentric organisations to converge their engineering, operational and information technologies. Craig Garrett is Academies Manager of Bentley Institute’s Digital Advancement Academies.
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use of data should be planned during earlier stages, because that’s when we can get the benefit later on, so the way we collaborate needs to change intrinsically.” Cruz had a similar view: “One of the key principles of collaboration is getting the right information from the right person at the right times, which means if we follow the mandate then information from design to construction should be accessible to everyone.” This led Uduman to point out that the problem is every region has its own work flow standard, for which software sometimes can’t meet the requirements. When you compare the technology, it shouldn’t be “compared with what I have and what I want; ideally, it should be compared with what I had and what I have now”, he explained. Cruz added that there are now lots of technologies to aid BIM, such as virtual reality to help with safety training. So one of the things they are trying to do is minimise the presence of people on work-sites, which means minimising risk on-site,” she said as the panel came to a conclusion.
The use of data and how we use it should be planned at the earlier stages, because that’s when we can get the benefit. The way we collaborate needs to change intrinsically” MEConstructionNews.com | December 2019
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Industry insight
TOBY RANDLE FENWICK ELLIOTT
The construction law issues likely to affect delivery of Saudi Vision 2030
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s a construction lawyer working on various projects in KSA, I have been asked to share my thoughts about some of the key construction law issues likely to affect the successful delivery of Saudi Vision 2030. First, let’s take a look at some of the mega projects and the fundamentals planned as part of this trillion-dollar Vision: NEOM will be a brand-new $500bn futuristic mega city 33 times the size of New York City. The Red Sea Project will be a completely new destination including 50 new hotels on 22 islands, six mainland destinations and a planned new town for 35,000 workers. Quidiya City will be 40km from Riyadh’s city centre. The resort is expected to attract 1.5m visitors per year, with reports suggesting the infrastructure alone could cost nearly $8bn. AMAALA will be an extra luxurious new tourism destination on the Red Sea coast, spanning over 3,800sqkm. Diriya Gate will be a 7sqkm project with a diverse group of museums, galleries, and other educational and cultural attractions. In terms of the construction law challenges that stakeholders are likely to face, I am reminded of what I was once told by a well-known English QC when I was a junior barrister 25 years ago: “No-one tells you the easy and obvious things. You have to find those out for yourself.” If readers will forgive me, I’m going to share some of that obvious stuff here. The issues I identify below are of course well understood by the key players in every project. But it does December 2019 | MEConstructionNews.com
no harm to remind ourselves of them. It is important that everyone understands the fundamentals and takes time to find them out for themselves at the beginning, not after a problem has emerged. That way, the problem may never emerge at all. Is the contract or sub-contract a lump sum, target cost or remeasurement? This question fundamentally affects the commercial approach on any project, and it is remarkable how often the people who should know the answer simply don’t. Who has design responsibility for each element? And who has responsibility to coordinate those designs? A common problem is that everyone else thinks someone else is responsible for a particular element of the design and its coordination – the problem doesn’t manifest until a delay is inevitable. Seemingly obvious issues like this are often overlooked until it’s too late and a problem has emerged. What are the mechanisms to manage change in the contract? Are there any time limits to bring claims? What do you need in place to bring or respond to a claim? If those mechanisms are operated early, with good communication and transparency between all concerned, challenges can be managed much more easily. Make sure you have detailed records available to enable you to bring or respond to a claim. Daily photographs and videos are invaluable. Records of who was doing what and where are also vital. Such records can be worth their weight in gold – literally. The cost of producing them almost always pays for itself multiple times over. Don’t assume all is well just because the early stages of a project are reported to have gone according to plan in terms of budget and programme. Big issues may already exist which simply haven’t manifested yet or haven’t been acknowledged by one party or another.
Don’t assume all is well just because the early stages of a project are reported to have gone according to plan in terms of budget and programme”
Don’t be afraid to ask difficult questions when things are going well. What value of work are you truly committed to under your contract? Is there a way out if challenges emerge, funding dries up or unforeseen events occur? What are the termination for convenience options and risks? How well is the scope defined? Typically, the client commences a design and then asks a contractor to take responsibility for completing it. Properly understanding how advanced that design is from an early stage is vital. It’s clear that momentum is building now, and Saudi Vision 2030 really is starting to happen. Only last month The Red Sea Project announced the award of the contract for the design of the new airport, an important milestone and the first of the infrastructure projects that will form the foundation for this project. Construction works also kicked off last month to develop the first residential areas for workers on NEOM, and works are due to start in January 2020 on Diriya Gate. Toby Randle is a partner at Fenwick Elliott and lead partner in a new construction law alliance between Fenwick Elliott and KSA firm HMCO.
JEREMY SUMERAY ARMSTRONG CEILING SOLUTIONS
A user-centric approach will ‘LEED’ the way
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he focus on sustainability is one of the biggest trends in the Gulf Cooperation Council’s building sector, with Dubai having one of the highest numbers of LEED certified buildings. Market demand is higher than ever before.
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Building for wellbeing requires a usercentric design approach. Inclusive and integrated, it brings users and scenarios into the design process, staying focused on users’ needs to build around well-being” Specifiers are looking for practical solutions, they want simplicity, clarity and proof, while designers are becoming even more environmentally conscious and searching for solutions that tick all the boxes. There are many factors to consider during the building design process, whether it’s the use of materials, lighting or acoustics to help achieve a LEED-certified building. However, it’s important that each component is driven towards improving the user experience. Here are a few key ways this can be achieved: BE SELECTIVE WITH RESOURCES Over the years, there has been a strong emphasis on recycling and indoor environment quality. Currently, 60% of all materials are consumed by the construction and operation of the built environment, with many of these going to landfill at the end of their life. The challenge is to retain building materials in the economy, rather than the current linear model of take, make and dispose. We should be designing buildings for disassembly and reuse in order to improve resource efficiency. This can be achieved by choosing reusable and recyclable materials, which in turn can help to lower costs and use resources more efficiently. Ceiling solutions with Cradle to Cradle certification have been designed to be endlessly reusable, taking into account how a product is designed, what’s in it and where it goes after use. Therefore, companies should look out for this certification when specifying building products, as they have been designed for recycling using manufacturing processes which minimise water consumption and
adopt renewable energy strategies. Here at Armstrong, our Cradle to Cradlecertified ceiling solutions meet the LEED Materials and Resources credit, which rewards project teams for selecting products that are verified to have improved lifecycle impacts. THINK BEYOND THE EXTERIOR Creating a greener building goes far beyond the external surroundings, and it’s important that we look at the interior elements that can help to achieve LEED certification. High-performance acoustics are essential to absorb and block unwanted noise and should be a top design priority, particularly in green buildings where the norm is not only to use fewer resources, but to create environments that promote health and well-being for individuals. In addition, by implementing passive heating and cooling ceiling systems, companies can ensure they have better control of creating a constant, comfortable temperature around the clock. A well-designed ceiling with high light reflectance improves space illumination, allowing fewer light fixtures, reduced electrical light output, lower maintenance costs and reduced cooling load. High light reflectance ceilings can enhance the benefits of indirect lighting by improving overall lighting uniformity, returning up to 90% of the light back into the space, compared to 75% with standard ceilings. PLACING THE USER EXPERIENCE AT THE HEART OF THE DESIGN Building for well-being requires a usercentric design approach. Inclusive and integrated, it brings users and scenarios into the design process, staying focused on users’ needs to build around wellbeing – it will not only help to achieve LEED certification but will improve individuals’ productivity and well-being. The industry needs to up its game and go beyond creating spaces that just look aesthetically appealing. We need to be creating sustainable building environments that individuals can work, live and play in for generations to come. Jeremy Sumeray is marketing manager, Sustainability, at Armstrong Ceiling Solutions.
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SAEED AL ABBAR
EMIRATES GREEN BUILDING COUNCIL
The UAE’s greenprint for net zero carbon buildings
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he narrative of sustainable development has gained traction in recent years, along with the importance of net zero carbon buildings, with the World Green Building Council targeting all buildings to be net zero carbon by 2050. Highly energy-efficient, net zero carbon buildings meet energy needs, on-site or off-site, from renewable sources. However, net zero is not a new vision. In fact, traditional homes and structures in the region, especially wind towers, draw on the principles of sustainability by using local materials and passive design to enhance the well-being of residents. Today, net zero buildings have gained tremendous importance in our collective move towards decarbonisation. Emirates Green Building Council (EmiratesGBC), as an independent forum aiming to conserve the environment by strengthening and promoting green building practices, has played a pioneering role in promoting net zero buildings over the last few years. We serve on the WorldGBC Advancing Net Zero Steering Committee and contribute to a MENA Net Zero Advisory Panel that brings a regional focus to the global movement toward Net Zero. We have also documented the ‘Defining Nearly Zero Energy Buildings in the UAE – 2017’ report, which provided a roadmap for near zero energy buildings in the UAE. Furthermore, we have established the Net Zero Centre of Excellence, a think tank and accelerator that serves as an important platform for the government, MEConstructionNews.com | December 2019
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academia and the private sector to learn and share knowledge on how to advance net zero carbon buildings. To further advance the net zero buildings movement, EmiratesGBC has also partnered with the International Living Future Institute to offer Zero Energy and Zero Carbon certifications for projects in the UAE. We also introduced the Zero Building or Zero Building Design of the Year category at our MENA Green Building Awards 2019, which recorded strong entries. Majid Al Futtaim’s Tilal Al Ghaf Sales & Experience Centre won the award – a great showcase of what can be achieved in the UAE. We are continuing our work on promoting net zero, and every stakeholder in the UAE – from cities and developers to owners and tenants – can partner in this cause. They can take up the World Green Building Council’s Net Zero Carbon Buildings Commitment, which challenges companies, cities, states and regions to reach net zero operating emissions in their portfolio by 2030 and to have all buildings be net zero by 2050. In fact, five EmiratesGBC members have committed to the cause already. The UAE has already taken the pivotal first step, and we are in a strong position to achieve the net zero carbon buildings commitment. The UAE Clean Energy Strategy 2050, the Green Building Regulations already enforced in Abu Dhabi, Dubai and Ras Al Khaimah, and other sustainable energy initiatives reflect the nation’s focus on achieving this. The UAE was also one of the first national governments to announce its commitment to the Zero Carbon Buildings for All initiative, led by the World Resources Institute (WRI) and endorsed by the UN Secretary General. This not only underlines the forward-looking vision of the UAE but also the nation’s laser-sharp focus on helping achieve the goals of the Paris Agreement. At the heart of this positive transformation, which also calls for public and private sector collaboration and action, is the need to position building performance as a core component of the net zero strategy. Net Zero is a strategic imperative for the building sector, and its value will benefit us and the coming generations. Saeed Al Abbar is Chairman of Emirates Green Building Council. December 2019 | MEConstructionNews.com
digitally through adopting state-of-the-art building technologies that deliver various unit layouts and designs at affordable rates.
SHAHD ALMEHDAR JLL JEDDAH
Building Technologies Drive Change in Saudi Arabia’s Residential Market
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ngoing announcements by the government of Saudi Arabia reflect the Kingdom’s ambitions to provide more affordable housing to its citizens, while achieving efficiencies in the building and construction sector. This is crucial, as construction costs form a significant component of the selling price of any residential project. Key to making a project affordable, then, is the ability to minimise construction time and cost, while ensuring the efficiency and quality of the development is maintained in the long term. STRONG FUNDAMENTALS DRIVING DEMAND AND INNOVATION The demographic structure of Saudi Arabia, characterised by a large young population, continues to act as the primary driver of demand for residential property. According to Oxford Economics, the Kingdom’s population is expected to grow from 33m in 2018 to 40m by 2030. Almost 60% of the population is made up of people aged 15-49, who typically demand more modern solutions to their real estate, unlike traditional households. With these demographics and changing lifestyles in mind, the city has seen a shift in the type of real estate products offered, with greater focus on quality, smart and sustainable solutions. As such, it has become vital for the traditional construction industry to transform
INNOVATION AND TECHNOLOGIES IN REAL ESTATE The Kingdom has already taken steps to develop new environmentally friendly dwellings – ‘eco houses’ – using innovative eco-friendly building materials and technologies. These include wind turbines, solar panels, high efficiency lighting, ultra-efficient insulation and recycling. The Ministry of Housing (MoH) has also launched the Building Technology Stimulus (BTS) programme, in line with the National Housing Strategy. Through this, it plans to build 1.5m smart, affordable and sustainable residential units through adopting innovative building technologies. The BTS programme employs modern methods of construction (MMC), using premanufactured parts and pre-cast structures (like kitchen and washroom fixtures), with parts assembled off-site then delivered as required. This improves and standardises the quality of build, while saving time and money. The programme also employs future methods of construction (FMC), using futuristic technologies such as 3D printing and robotics. ENCOURAGING PUBLIC-PRIVATE PARTNERSHIPS Earlier in the year, Jabal Omar Development Company (JODC) announced a collaboration with the MoH on its BTS programme. Both entities will work jointly on developing innovative building technologies, in order to increase the annual construction rate and raise the standards of housing development in the Kingdom. This form of
It has become vital for the traditional construction industry to transform digitally through adopting stateof-the-art building technologies that deliver various unit layouts and designs at affordable rates”
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public-private partnership incentivises the private sector to develop affordable housing, while ensuring the end user is protected. Consequently, by encouraging private sector participation we can expect to see growth in the number of local and international companies, in addition to building tech entrepreneurs setting up businesses that provide autonomous building management systems, geospatial data analytics for urban space planning and management, and products for sustainable modular housing. Demand for smart, low-cost buildings continues to grow exponentially in Saudi Arabia, which is driving changes in the overall real estate market. Smart building technologies aim to bridge the gap between the built environment and the occupant experience, with a limited impact on the environment and in many cases without incremental cost. Shahd AlMehdar is Senior Research Analyst, Jeddah at JLL
DR RUSTY BRAINARD THE RED SEA DEVELOPMENT COMPANY
An Ambitious Vision for Environmentally Sustainable Tourism
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he marine and terrestrial ecosystems of the 28,000sqkm area of The Red Sea Project comprise stunningly beautiful and biologically diverse coral reefs, abundant and thriving populations of sea turtles, dolphins, seabirds and other protected species, massive sand dunes and majestic rock formations. The Red Sea Development Company (TRSDC) is developing a luxury tourism
destination built around environmental sustainability that will create jobs and drive economic growth in the Kingdom. Unlike other sustainable development efforts, which focus on minimising negative impacts, TRSDC is actively working to establish a new global standard by striving to enhance the surrounding environment over the long term. The protection and enhancement of the destination’s beautiful habitats and the creatures that live there are directly linked to the long-term ability of the destination to attract tourists and thus provide sustainable jobs and income for local communities. It is forecast that The Red Sea Project will provide about 70,000 direct and indirect jobs and contribute SAR 22bn to the Saudi economy. Tourism is a globally significant industry, contributing $8.8 trillion to the global economy and 319 million jobs in 2018. That represents 10.4% of worldwide economic activity and one in ten of all jobs. A key pillar of Vision 2030, the tourism sector in Saudi Arabia is expanding to attract new leisure tourists to the Kingdom while offering religious visitors a reason to stay longer. To support this level of employment and economic contribution beyond 2030, we must protect and enhance the natural habitats unique to our destination. Because we are working in a largely untouched area, we have a responsibility to develop it sensitively and sustainably. That is why we undertook a comprehensive Marine Spatial Planning exercise in partnership with King Abdullah University of Science and Technology (KAUST) to inform the concept master plan. The results of that exercise provide a basis of our commitment to enhance conservation value by 30% over the next twenty years. As part of this commitment, TRSDC is working with scientific partners at KAUST and other research institutions around the globe to develop state-of-the-art approaches to growing thermally resilient corals. In this way we hope to take on the significant challenge of building and maintaining our coral reefs in the face of climate change. A LIGHT TOUCH TRSDC is leaving 75% of the 90+ islands in the Al Wahj lagoon untouched, using 100% renewable energy and committing to zero waste to landfill. Sustainable food production will reduce imports and associated greenhouse gas emissions, with
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Development will incorporate prefabrication and modular construction, to minimise the number of construction workers on-site and reduce the environmental footprint” a goal of one third of food grown on-site. The company is also implementing a total ban on single-use plastics, which are widely used in the hospitality sector. TRSDC is working with hotel partners to implement greener solutions such as using refillable glass containers for soaps and shampoos in hotel rooms. The goal is to achieve carbon neutrality or better, which will require 100% of the CO2 emissions associated with the incoming and outgoing flights of up to one million visitors annually, as well as all emissions associated with imports of everything coming to the destination, including food and supplies, to be sequestered. We are currently exploring solutions to help us achieve this. At TRSDC, every contract we sign requires partners, contractors and suppliers to take a sustainable approach. Development will incorporate prefabrication and modular construction, to minimise the number of construction workers on-site and reduce the environmental footprint. And construction will use ‘green’ concrete, a low carbon footprint material using recycled raw materials. The crossing connecting the hub island with the mainland was designed and routed to minimise impact on water flows and marine life. Rather than taking the shortest path to the island, the crossing makes use of existing land masses and is planned to avoid corals and to protect the surrounding ecosystems. Not all the solutions or technologies required have been identified, and in some cases they may not yet exist, but TRSDC is committed to working with the global science and technology community to fund and deploy the right solutions, focusing on longterm sustainability over short-term profits. Dr Rusty Brainard is chief environment officer at The Red Sea Development Company. MEConstructionNews.com | December 2019
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Middle East tenders UAE RESIDENTIAL
Burj Royale BUDGET $350 million CLIENT Emaar Properties TERRITORY Dubai, UAE DESCRIPTION The project’s scope of work consists of a 58-storey residential tower with opulent views to Burj Khalifa and the Dubai Fountain located at Downtown Dubai, Dubai. The project is close to the Dubai Mall and Dubai Opera. The project offers 1, 2 and 3 bedroom apartments with regal amenities. Burj Royale complements its residences with modern amenities that include a barbecue area, common courtyard and terrace, high-speed internet, meeting room, residents lounge area, video security, reception service and a rooftop observation deck with close proximity to a wide range of popular food and beverage outlets and cafes. It also includes parking facilities, elevators, changing rooms and associated facilities. PROJECT COMPLETION November 2022
Services PJSC (Musanada) TERRITORY Abu Dhabi, UAE DESCRIPTION The project’s scope of work involves the construction of a training village located at Al Haffar, Abu Dhabi. The project includes construction of a training village, main administration building, sports zone, indoor ranges, prison zone, anti-narcotics zone, dog training centre, F7 zone, driver training centre, air wing zone and infrastructure works. PROJECT COMPLETION June 2021 COMMERCIAL & RESIDENTIAL
Dubai Creek Beach Sunset BUDGET $151 million CLIENT Dubai Holding Group, Emaar Properties TERRITORY Dubai, UAE DESCRIPTION The project’s scope of work consists of 3 residential buildings located at Dubai Creek Harbour, Dubai. Building one has ten floors, building two has nine floors and building three has six floors, along with retail outlets, children’s play areas, sports facilities, common gardens, a restaurant, car parking and a
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RESIDENTIAL
Yas Acres Lea Waterfront
mall. The project offers 1-, 2-, 3- and 4-bedroom apartments. The sunset apartments are housed in three stylish low- to mid-rise buildings connected by a podium that hosts several lifestyle amenities, including a swimming pool. While two of the three buildings have contemporary architecture, the third is designed in Arabesque style. A pedestrian bridge connects Sunset residences to Creek Island Dubai, another lively hub of leisure activities from top developer Emaar in Dubai Creek Harbour. The project has private beach living within urban settings and is walking distance to the future Dubai Creek Tower. PROJECT COMPLETION December 2023
BUDGET $500 million CLIENT Aldar Properties TERRITORY Abu Dhabi, UAE DESCRIPTION The project’s scope of work consists of 238 residential villas located at Yas Acres, the northern part of Yas Island, Abu Dhabi. The project also includes parks, play areas, picnic areas, schools, waterside walkways, a nine-hole golf course and its associated facilities. PROJECT COMPLETION December 2022
SAUDI ARABIA INFRASTRUCTURE
Shuqaiq Desalination Plant (Phase 4) BUDGET $510 million CLIENT Saline Water Conversion Corporation TERRITORY Jizan, Saudi Arabia DESCRIPTION The project’s scope of work involves the construction of a 400,000 cubic metre per day desalination plant located at Jizan, Saudi Arabia. The project includes power plant, sea water intake system, installation of pumps, installation of pressure exchanges, installation of membranes and associated facilities. PROJECT COMPLETION November 2023
GOVERNMENTAL
Al Haffar Training Village
Wadi Makkah
BUDGET $205 million CLIENT Abu Dhabi General
BUDGET $1.1 billion TERRITORY Mecca, Saudi Arabia
COMMERCIAL & HOSPITALITY
MEConstructionNews.com | December 2019
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TENDERS
CLIENT Wadi Makkah Company DESCRIPTION The project’s scope of work consists of commercial buildings and hotel buildings located at Mecca, Saudi Arabia. The project includes I and E Park (Innovation and Entrepreneurship Park), MTV offices, business incubators (offices and labs), innovation cluster, SandT Park (Science and Technology Park), other recreational and housing components, nine-storey hotel buildings, five-storey serviced apartment buildings, convention centre and residential units. PROJECT COMPLETION May 2021
OMAN INFRASTRUCTURE
Suwaiq Port Quay Wall BUDGET $105 million CLIENT Marafiq TERRITORY Suwaiq Port, Oman DESCRIPTION The project’s scope of work consists of a quay wall located at Suwaiq Port, Al Batinah North Governorate, Oman. It also includes basin, dredging and reclamation works, and associated facilities. PROJECT COMPLETION August 2022
RESIDENTIAL
Nairyah Housing Complex BUDGET $105 million TERRITORY Nairyah, Saudi Arabia CLIENT Saudi Railway Company DESCRIPTION The project’s scope of work consists of a housing complex and associated works located in Nairyah, Eastern Province of Saudi Arabia. PROJECT COMPLETION May 2022 HOSPITALITY
Jeddah Four Seasons Hotel Renovation
at Ras Al Hadd, Sur City, Oman. The project also includes an accommodation zone for 450 employees, parking facilities and infrastructure facilities. PROJECT COMPLETION May 2023 INFRASTRUCTURE
Adam to Thumrait Road Dualisation (Part 3) a four-star hotel (240 rooms), restaurants, lobby lounge, an executive lounge, parking facilities, installation of elevators, Installation of safety and security systems and associated facilities. PROJECT COMPLETION March 2022
HOSPITALITY
Hayy Al Sharq Hotels BUDGET $152 million CLIENT Muscat National Development & Investment Company TERRITORY Barka, Oman DESCRIPTION The project’s scope of work consists of two 8-storey hotel buildings located at Barka, Batinah South Governorate, Oman. The project also includes a three-star hotel (260 rooms),
BUDGET $267 million CLIENT Midad Real Estate Investment & Development Company DESCRIPTION The project’s scope of work involves the renovation of a hotel building located at Jeddah, Saudi Arabia. The project work includes fit-out works, interior works, mechanical electrical plumbing (MEP) works, civil works and associated facilities. PROJECT COMPLETION January 2023
December 2019 | MEConstructionNews.com
RESIDENTIAL
Ras Al Hadd Resort (Package 5) Staff Accommodation BUDGET $165 million CLIENT Qatari Diar Real Estate Investment Company, Oman Tourism Development Company TERRITORY Ras Al Hadd, Oman DESCRIPTION The project’s scope of work involves the construction of staff accommodation located
BUDGET $202 million CLIENT Oman Ministry of Transport & Communications DESCRIPTION The project’s scope of work involves the dualisation of Adam to Thumrait Road in Adam, Al Dakhiliyah, Oman. The project stretches from the wilayat of Haima to Muqshin with a length of 132.5km. The project includes the construction of 16 at-grade U-turns, service roads, 4 rest areas, 2 weigh stations, 21 lay-bys, 8 emergency median openings, 22 ROP parking, 115 reinforced concrete box culverts for cross drainage and 88 pipe culverts for median drainage, median dykes and embankment protection. PROJECT COMPLETION April 2022
BAHRAIN INFRASTRUCTURE
Muharraq Ring Road to Busaiteen Link Road Work BUDGET $82 million CLIENT Bahrain Ministry of Works, Municipalities Affairs & Urban Planning TERRITORY Manama, Bahrain DESCRIPTION The project’s scope of work involves the construction of roads from Muharraq Ring Road to
TENDERS
Busaiteen Link Road in Manama, Bahrain. The project also includes road painting works, signalling works and associated facilities. PROJECT COMPLETION October 2022
in Al-Jahra Governorate, Kuwait. The city will accommodate 20,000 workers. The project will cover an area of 1,015,000sqm 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 centre, restaurants, bakery, etc. PROJECT COMPLETION April 2022
INFRASTRUCTURE
Ras Rayaa Harbour BUDGET $250 million CLIENT Bahrain Ministry of Works, Municipalities Affairs & Urban Planning TERRITORY Diyar Al Muharraq, Bahrain DESCRIPTION The project’s scope of work involves the construction of a harbour located at Diyar Al Muharraq, Bahrain. PROJECT COMPLETION December 2023 RESIDENTIAL
Al Madina Al Shamaliya Development Island 14 – Villa Complex BUDGET $150 million CLIENT Bahrain Ministry of Housing TERRITORY Madinat Salman Island 14, Bahrain DESCRIPTION The project’s scope of work consists of 303 residential villas each comprising 2 floors located at Madinat Salman Island 14, Bahrain. The project also includes a children’s play area, landscaping works, clubhouse, installation of safety & security system, street lights and associated facilities. PROJECT COMPLETION December 2021 RESIDENTIAL
Durrat Al Bahrain Residential Islands BUDGET $55 million
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INFRASTRUCTURE
CLIENT Durrat Khaliji Bahrain TERRITORY Durrat Al Bahrain, Bahrain DESCRIPTION The project’s scope of work involves the construction of atoll 5 and 6 residential islands located at Durrat Al Bahrain, Bahrain. PROJECT COMPLETION December 2021
KUWAIT ENERGY
Dabdaba Photovoltaic Power Plant BUDGET $1.65 billion CLIENT Kuwait National Petroleum Company TERRITORY Kuwait City DESCRIPTION The project’s scope of work involves the construction of a 1,500mw photovoltaic solar plant located at Al Shegaya Renewable Energy Park, 100km west of Kuwait City. The project includes the design of PV plants; procurement of all components including wiring, PV modules, inverters and control system; construction, performance testing, commissioning, operating and maintaining the plants for the
period defined by KNPC; and training of staff for operating the plants upon completion of the operation and maintenance contract period. PROJECT COMPLETION September 2021 COMMERCIAL & RESIDENTIAL
South Al Jahra Labour City BUDGET $125 million CLIENT Kuwait Ministry of Public Works, Kuwait Authority for Partnership Projects & Kuwait Municipality TERRITORY Al-Jahra Governorate, Kuwait DESCRIPTION The project’s scope of work involves development of the city for expatriate workers located
West Al Fintas Fresh Water Ground Tanks (Phase 2) BUDGET $1.5 billion CLIENT Kuwait Ministry of Electricity & Water TERRITORY West Al Fintas, Kuwait DESCRIPTION The project’s scope of work involves the construction, completion and maintenance of 2 ground tanks of freshwater reinforced concrete 85m imperial gallons located at West Al Fintas area with annexes No. 3 – Phase II, Kuwait. PROJECT COMPLETION March 2021 INFRASTRUCTURE
Mubarak Al Kabeer Seaport (Phase 1) Stage 3C BUDGET $350 million CLIENT Kuwait Ministry of Public Works, Mega Projects Agency TERRITORY Mubarak Al Kabeer Seaport, Kuwait DESCRIPTION The project’s scope of work involves the construction of a handling equipment manufacturer located at Mubarak Al Kabeer Seaport, Kuwait. PROJECT COMPLETION December 2022
MEConstructionNews.com | December 2019
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PROGRESS REPORT
Final update
TRSDC awards Foster + Partners design contract for international airport Airport due to be 1m completed in 2022 number
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he Red Sea Development Company (TRSDC), the developer behind the ambitious Red Sea Development tourism project in Saudi Arabia, has announced the award of the design contract for its international airport to Fosters + Partners. By 2030, the destination’s international airport is expected to serve one million annual tourists and visitors, a statement from the developer said. The airport is due
for completion in 2022 and will have a schedule of domestic and international flights, with peak capacity of 900 passengers per hour. In line with the company’s sustainability goals, the project will have an eco-friendly and sustainable design. Upon completion in 2030, the destination will deliver up to 8,000 hotel rooms across 22 islands and six inland sites. The annual number of visitors will be carefully managed to avoid over-tourism and ensure that every guest enjoys a memorable experience, the developer added. Gerard Evenden, head of studio, Foster + Partners, said: “The Red Sea Airport has been envisaged as a
December 2019 | MEConstructionNews.com
of annual tourists expected at the airport by 2030
Eco-friendly design In line with TRSDC’s sustainability goals, the airport project will have an eco-friendly and sustainable design, inspired by the colours and textures of the desert landscape.
gateway to one of the most unique resorts in the world and an integral part of the visitor experience. “Inspired by the colours and textures of the desert landscape, the design seeks to create a calm and luxurious journey through the terminal and will become a transit hub for visitors coming in by both land and air,” Eveneder added. “The airport will be a cutting-edge facility providing a unique experience for our visitors. Smart technology will play a vital role in the development of the airport, and it was key for us to work with a company who could assemble a team with the skills to ensure the airport would be smart by design,” added Ian Williamson, chief project delivery officer at TRSDC.
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