Qatar Construction News by Firefly Communications

EXCLUSIVE IntErVIEw: LEADInG QAtArI ArCHItECt IbrAHIm JAIDAH on moDErn ArAbIC bUILDInG DESIGn

launch issue

CONSTRUCTION PERSPECTIVES 6 MUST-READ INTERVIEWS WITH LEADING PLAYERS IN QATAR’S CONSTRUCTION SECTOR

Localising QATAR CONSTRUCTION Why more Qatari nationals must be recruited in the industry

DOHA: SMART CITY? Exploring urban solutions through technology

Plus: Next steps for Hamad International Airport? Combatting corruption in construction

QCN is brought to you by the makers of The Edge, Qatar’s Business Magazine

contents M ay-2014 www.qatarconstructionnews.com

30.

Cover Story

Leaders in Qatar’s construction sector share their perspectives on the dynamics of the local market, its challenges and opportunities.

Regulars

From the Editor - 4 Construction News - 6 Guest Column - 14 Qatar Tenders - 56

24.

Interview Qatar’s modern Arabic architecture: Connecting the past with the present

Ibrahim Jaidah, CEO of the Arab Engineering Bureau, discusses the birth of modern Arabic architecture – an eclectic combination of Islamic and contemporary design.

16.

Feature Story DOHA: SMART CITY? At the pace cities are currently growing, they are straining to meet the demands of an increasing population. Is a city linked together through technology the answer to our urban problems? If yes, can Doha become a shining example of such a smart city?

52.

Feature Story Giving national character to Qatar’s construction industry Greater labour scarcity at home and heightened competition in the Gulf would mean relying heavily on foreign labour, an unsustainable strategy for Qatar. David Jones explains why the future construction scene of the country must see a higher number of nationals involved, both in public and private sector.

QCN | May 2014

publications director mohamed jaidah m.jaidah@firefly-me.com general manager joe marritt j.marritt@firefly-me.com managing editor miles masterson m.masterson@theedge-me.com editor farwa zahra f.zahra@theedge-me.com digital editor/editorial asst. shehan mashood s.mashood@theedge-me.com international sales director julia toon j.toon@firefly-me.com | +974 66880228 head of business sales manu parmar m.parmar@theedge-me.com | +974 33325038 sales manager adam kynnersley a.kynnersley@theedge-me.com | +974 66079716 area sales manager UAE roger cousin r.cousin@firefly-me.com | +971 508716076 distribution & subscriptions azqa haroon/joseph isaac a.haroon@firefly-me.com j.issac@firefly-me.com art director sarah jabari senior graphic designer niveen saeed production coordinator ron baron photographer herbert villadelrey printer ali bin ali printing press Doha, Qatar

firefly communications PO Box 11596, Doha , Qatar Tel: +974 44340360 / Fax: +974 44340359 www.firefly-me.com The Edge, Qatar Construction News is printed monthly by ÂŠ 2014 Firefly Communications. All material strictly copyright and all rights reserved. Reproduction in whole or in part, without the prior written permission of Firefly Communications, is strictly forbidden. All content is believed to be factual at the time of publication. Views expressed by contributors are their own derived opinions and not necessarily endorsed by The Edge or Firefly Communications. No responsibility or liability is accepted by the editorial staff or the publishers for any loss occasioned to any individual or company, legal or physical, acting or refraining from action as a result of any statement, fact, figure, expression of opinion or belief contained in The Edge. The publisher (Firefly Communications) does not officially endorse any advertising or advertorial content for third party products. Photography/image credits and copyright, where not specifically stated, are that of Shutterstock and/or iStock Photo or Firefly Communications.

May 2014 | QCN

editor’s letter

In many ways, introducing a new magazine in the market is analogical to constructing a building. It has been months of planning the blueprint for Qatar Construction News (QCN), ensuring its foundations are laid right with attention to every detail, and while we were busy doing the groundwork for its inaugural issue, I repeatedly faced the question: Why a construction magazine? But then, why not? Here we are witnessing the literal transformation of Doha’s skyline and the city’s facade. Flipping through the newspapers every day, there’s almost always a major headline directly let alone remotely connected to the construction boom in the lead up to 2022 World Cup. Whether it is the increasing influx of expatriates, mostly filling the job pool in the country’s construction sector, or limited residential units for the growing population that has now reached 2.16 million. Whether it is the increasing number of hotels, limited parking spaces, overcrowded malls, or on a daily basis, the sheer load of traffic congesting Doha’s roads and the pains of experiencing frequent diversions, one thing is very clear: Qatar’s construction scene is more vibrant than ever before, and seemingly, will leave its share of repercussions on areas beyond this sector. Writing along the same lines, David Jones on page 52 discusses how the 2022 World Cup will leave Qataris with a sense of national pride, while encouraging them to be part of otherwise less attractive sectors, construction being one of them. Beyond the brick and mortar, let us not forget about the imminent labour reforms the Ministry of Interior has recently promised, highlighting the interest of all expatriates, currently making up about 94 percent of the economically active population. In our cover story on page 30, we bring perspectives from some of these expatriates, currently holding top positions in Qatar’s construction industry, dealing in areas of civil, electrical and geotechnical engineering, among others. The exclusivity of these interviews and other stories in the magazine is reflective of the hard work all team members have invested in bringing you QCN – a 100 percent Qatari publication focused on Qatar’s dynamic construction industry. Enjoy reading our launch issue, and in the ones to come, expect an added variety of contents.

Farwa Zahra Editor May 2014 | QCN

Construction

News Once fully open, the terminal will house 16 lounges, 26 art installations, more than 100 food and beverage and retail outlets, transit hotel, a swimming pool, a luxury spa, squash courts and a four-storey catering facility that is one of the largest in the world.

Infrastructure

CAN DOHA’S NEW AIRPORT AVOID FURTHER DELAYS AFTER ITS SOFT LAUNCH? “There is capacity to phase the expansion to full operation over a longer period if this soft launch exposes unexpected issues that require a longer time to rectify.” – Anthony Holmes, director, IIS.

Departures hall at the Hamad International Airport.

May 2014 | QCN

After years of delay, Hamad International Airport opens its gates to the first passengers as 10 carriers shift to the new airport while the rest will move in May. Qatar Construction News (QCN) explores how realistic this target is. On April 30, Qatar’s new airport Hamad International Airport (HIA) welcomed arriving passengers for the first time. A Qatar Airways flight was the first to officially land on the East Runway. The flight carried board members of the Steering Committee of New Doha International Airport (NDIA) and other delegates, and received a water salute by the Qatar Civil Aviation Authority Rescue Fire Fighting Services. Ten carriers have commenced operations at the new passenger terminal at HIA. The remaining airlines, including national carrier Qatar Airways, are expected to move to the new airport by May 27, HE Abdul Aziz Mohammad Al Noaimi, chairman of the NDIA Steering Committee, has announced. With the repeated delays of the soft

launch, the hope is that the promise will be realised within the given timeframe. Anthony Holmes, director of Institute for Infrastructure Studies, Qatar, believes the next couple of weeks will clarify this. While it is unlikely that HIA will revert to being non-operational, he said, “There is capacity to phase the expansion to full operation over a longer period if this ‘soft’ launch exposes unexpected issues that require a longer time to rectify.” Holmes, however, said that a soft launch is a prudent step that recognises an airport is a complex facility, and while offline testing may indicate that systems are functioning within required parameters, a residual risk remains until the airport has been operated at full capacity. “A soft launch is an intermediate step in the Operational Readiness and Testing (ORAT) process designed to expose any operational and systems faults that might emerge when the airport scales up from the simulated operation of the conventional ORAT programme.” Once fully open, the terminal will feature 16 lounges, 26 art installations, more than 100 food and beverage and retail outlets, a transit hotel, a swimming pool, luxury spa, squash courts and a fourstorey catering facility that is one of the largest in the world. The new airport’s onsite public mosque can accommodate 500 worshippers at prayer time.

construction news

“HIA is a world-class aviation hub purpose-built to cater to the rapidly evolving aviation and passenger needs of the 21st century,” said Al Noaimi. HIA and Airport City (together comprising the NDIA project) span 29 square kilometres, 60 percent on land reclaimed from the Arabian Gulf. The project includes 100 buildings of various uses. The passenger terminal features an internal area of 600,000 square metres and has three concourses and 33 contact gates, which will subsequently be increased to five concourses and 65 contact gates, including eight for the A380, in the final build-out. “HIA will be a source of pride and joy for all people of Qatar for many decades to come. It will deliver a memorable experience to all passengers that will travel through its gates; an experience that reflects Qatar’s status and importance on the world travel and tourism map,” said Al Noaimi. Seconding him, Holmes said, “Of course, HIA is a spectacular terminal for which the state of Qatar can be proud,” adding, “When it is fully operational, HIA will be at

million

Hamad International Airport and Airport City together span 29 square kilometres, 60 percent on land reclaimed from the Arabian Gulf.

The annual capacity of HIA in terms of the number of passengers.

the forefront of international airports and will remain preeminent until a new airport development incorporates designs and technology not currently available to HIA. Usually this takes from two to five years.”

Interior view of the Emiri Terminal at the Hamad International Airport.

The on-site public mosque at Hamad International Airport can accommodate 500 worshippers at prayer time.

QCN | May 2014

Construction

News Awards

Key RECENT contracts awarded in Qatar • NSCC International Doha has been awarded the subcontract for the foundation works on the Doha Metro Green Line – Al Rayyan/CRing Station. This enabling works package was awarded by the main contractor consortium Porr-SBGHBK Joint Venture. The enabling works package includes diaphragm wall, contiguous piles, anchors, shotcreting works, steel net walls, rock nails and weep holes, and will take seven months to complete. • Qatar Railway Company has also awarded a USD4.4 billion (QAR16 billion) contract for the design

and construction of the Doha Metro Gold Line underground project, a D&B joint venture led by Aktor SA, and comprise Larsen and Toubro (L&T), Yapi Merkezi Insaat ve Sanayi Anonim Sirketi (Yapi Merkezi), Sezai Turkes Feyzi Akkaya Marine Construction (STFA) and Al Jaber Engineering. • Systra-Parsons joint venture has been awarded USD234 million (QAR852 million) project management and work’s supervision contract for Phase I of the Doha Metro. • Qatar Public Works Authority

(Ashghal) has awarded the C-Ring Road improvement project to Bin Omran Trading and Contracting. • The Qatari Ministry of Municipality and Urban Planning awarded ECG the contract to provide consultancy services for Umm Salal Municipality parks (package 3), namely Snay Lehmaidi, Umm Ebairiya and Bu Fesseela. ECG’s scope covers topographic and geotechnical surveys; development of conceptual, preliminary designs, design permits and detailed design; in addition to tender documents and tender action services.

Real Estate

Qatar’s real estate transactions increase by 29 percent Statistics released by the Ministry of Justice Qatar, reveal that Doha’s property market has grown substantially quarter-on-quarter, with a 29 percent increase in the number of transactions between Q4 2013 and Q1 2014, with the aggregate value of sales reflecting a 35 percent increase. Land sales continue to dominate movement in Doha’s real estate sector, representing approximately 77 percent of all property transactions in the last three months, according the latest Asteco Qatar Q1

May 2014 | QCN

2014 report, with the total value topping QAR7.35 billion. Qatar’s capital has also seen strong overall performance in the residential rental market despite a second wave of apartment releases on The Pearl-Qatar, easing the pressure on rental rates slightly following stabilisation in Q4 2013. After a decrease in the overall value of property transactions in Q4 2013, the first three months of the year saw improvement in residential sales activity as aggregate values increased by 19 percent quarter-on-quarter,

The Pearl-Qatar is one of the high-end properties in Doha. According to Jan Crisp, general manager, Asteco Qatar, take up of one- and three-bedroom units in The Pearl-Qatar remains strong.

although Asteco reports that due to the release of new stock on The PearlQatar, values for this area leveled off. “Towers with abovemarket-value prices are losing out in terms of sales transaction volume as

price-conscious buyers take a more measured approach to investment. We have also seen a significant increase in mortgage enquiries recently,” said Jan Crisp, general manager, Asteco Qatar.

Construction

News Transport

Qatar Rail receives first tunnel boring machine The first tunnel boring machine (TBM) that has reached Doha will have an average speed of up to 21 metres per day (m/day). Qatar Railways Company has taken delivery of the first of 21 tunnel boring machines. TBM S-865, also known as Lebretha, is the first TBM which will be launched for the Doha Metro as part of the Red Line North Underground project. In terms of the number of TBMs, Red Line North requires four compared with Red Line South requiring five, while Green Line and Gold Line requiring six TBMs each. TBM Lebretha was dismantled into 22 sections for ease of transport. Reassembling it into a complete

machine will take a few months over which the arrival of a further 20 TBMs is also expected. It will be assembled and launched from the Al Wahda site towards West Bay Central. Lebretha will travel a distance of approximately eight kilometres and will take approximately 22 months to complete the task between Q3 2014 and Q2 2016. Its average speed will be between 14m/day and 21 m/day, depending on ground conditions. Its daily excavation quantity will be approximately 680 cubic metres (m³), with a predicted total excavation quantity of 5.4 million m³. For the Red Line North Underground project, the D&B joint

venture is being led by Italy’s Salini Impregilo, with South Korea’s SK Engineering & Construction Co. Ltd, and Galfar Al Misnad Engineering & Contracting WLL (ISG JV). The scope of work comprises the design and construction of approximately 13km twin-bored tunnel, including seven underground stations.

Equipment

Bobcat launches S450 skid-steer loader

Bobcat has launched the new generation S450 skid-steer loader that replaces S130.

Bobcat joined Qatar’s construction scene in March 2014 through a partnership with Jaidah Heavy Equipment division, and has launched the new

May 2014 | QCN

generation S450 skid-steer loader, replacing the S130 model, a compact loader with many of the new features and improvements found on the larger Bobcat

new generation models. The S450 skid-steer loader can be supplied with a choice of 48 different product families of approved attachments (with more to come), offering solutions for a wide range of applications. Like the larger models, the S450 skid-steer loader offers significantly improved comfort and visibility to allow greater control and accuracy in tight working spaces. In addition, for the first time in a skid-steer loader model in this size class, the S450 loader is supplied with a fully pressurised

cab with air-conditioning as an option. Other key features include increased hydraulic performance and efficiency; a new tailgate design; integrated rear bumper and enhanced serviceability. The internal area of the cab has been increased by 10 percent compared to the S130 model, resulting in more space around the operator. All-round visibility is increased by 30 percent compared to the cab on the S130 model while the new front working lights contribute to improved forward visibility with a 50 percent increase in output.

NewsEvents Construction

Project Qatar CHRVI 12-15 MAY

26-29 MAY

With its 11th edition, Project Qatar returns with two new specialised conferences.

CHRVI Middle East is set to address HVAC, Energy Efficient Solutions and Technologies.

To be held from May 12 to 15, Project Qatar is expecting to welcome more than 2100 participating companies and guests from more than 50 countries. The 11th International Construction Technology & Building Materials Exhibition will be taking place at the Qatar National Convention Centre (QNCC). V.S. Narayanan, managing director of Oriental Trading Company, said, “This is the seventh year we are participating in Project Qatar. As the Qatar construction industry continues to attract major investment opportunities, this renowned exhibition offers the best exposure in the region for discussing integral topics and solutions, meeting contacts and conducting business related to the sector.” The event will also feature LightingTech Qatar and HVACTech Qatar, which are two new specialised conferences launched concurrently with Project Qatar 2014, designed to address the lighting and HVAC industry needs specific to the Qatari market.

Participation of 100 international, regional and local companies is already confirmed for the May exhibition The International Exhibition for Cooling, Heating, Refrigeration, Ventilation and Insulation (CHRVI) Middle East, which will be held from May 26 to 29 at Qatar National Convention Centre, aims to meet the increasing demand for energy use reduction technology, and to present the latest available methods in the industry. The regional HVAC market is expected to grow at an average of nine percent annually, and CHRVI Middle East will focus on the latest technologies in cooling, heating refrigeration, ventilation and insulation in manufacturing and commercial sectors.

Cityscape Qatar

billion), are a major attraction for investors and progress is underway. The country’s population has increased by 15 percent since our inaugural exhibition in Doha…Set against these impressive growth figures, Cityscape Qatar 2014 will be a not-to-miss opportunity for investors looking to enter the market,” said Deep Marwaha, group director for Cityscape. To be held from June 2 to 4 at Qatar National Convention Centre, a part of the event is dedicated to case studies and sector updates that will be presented by the industry’s leading experts. One of the event’s highlights Real Estate Summit will be held on the first two days, bringing together international real estate investors, developers, financiers and public sector bodies. The Retail Forum, a dedicated conference, will be held for the first time at Cityscape Qatar on June 4 to explore Qatari retail scene, focusing on opportunities for mall developers, mall operators and retailers.

2-4 jUNE The 2014 edition of Cityscape Qatar, one of the major real estate events in the region, will be held from June 2 to 4.

Project Qatar 2014 will welcome 24 international pavilions at the Qatar National Convention Centre in Doha.

May 2014 | QCN

The latest episode of Cityscape Qatar will feature an increase of 20 percent in the number of exhibitors, covering companies from more locations this time. 55 percent of all exhibitors are travelling from abroad in order to learn about the latest project news and showcase their companies. “Qatar’s mega-projects, amounting to more than USD150 billion (QAR546

Visitors look at a model of real estate development in Qatar, displayed at Cityscape Qatar 2013.

sectioncolumn guest

Dirty Games The construction sector continues to be among the top ranking industries in Transparency International’s Bribe Payer’s Index. M. Vasanth Kumar, chief executive officer of Arabian MEP Contracting, suggests how the sector can help fight against corruption.

M. Vasanth Kumar is the chief executive officer of Arabian MEP Contracting.

“Private businesses can play a crucial role in the global fight against corruption by creating an anti-corruption culture.”

May 2014 | QCN

Not many would have failed to notice a recent high profile legal case which happened in one of the GCC states (Oman) in which several construction industry executives and state officials were imprisoned and penalised for indulging in unethical business practices in awarding construction awards. Like seasonal flu, corruption is a contagious disease and can easily spread all around the region. Due to the sheer scale of money involved and extreme competition, historically, construction and corruption are often seen collaborating with each other at various levels and under various forms which makes it extremely complex to figure out the origin and structure. Exploitations in the construction sector leads to violation of standards, leading to poor quality and safety, thereby posing significant risks to our civil society. It is because of this direct repercussion of poorly-built construction and infrastructure works on a wider society, that the sector should be strictly monitored. There should be no impunity for the corrupt and those found guilty should be prosecuted and punished. Transparency International in their 2013 Corruption Perception Index (CPI) report had stated that over two-thirds of the 177 countries ranked have scores less than 50 in a scale of 0 – 100, in which 0 means highly corrupt. The results generated by the study are alarming with no country scoring a perfect 100. The CPI, however, is limited to the perceived levels of corruption in public sector enterprises around the world. This leaves us wondering how serious the problem could be in the private sector. This situation calls for preventing and detecting corrupt activities by implementing effective anti-corruption programmes, more important today than ever before. It is a widespread misconception that individuals or private companies resorting

to corrupt practices in private projects are immune to prosecution. In fact, they are also under surveillance and those errant companies and individuals could be taken to task by concerned authorities. Arguably, private sector provides the largest number employers, holding a significant share in the world economy. This also means that these private businesses can play a crucial role in the global fight against corruption by creating an anti-corruption culture within their organisations. Some measures leading to this goal involve adopting clean business policy with zero tolerance level to corrupt practices, and ensuring all employees comply to the highest code of ethical conduct. External audit companies together with internal audit department can effectively contribute to the cause by focusing more on background checks, conducting audits on anti-corruption activities, performing due diligence, monitoring third parties, and reporting any irregularities to the concerned authorities without any fear. By aggressively enforcing selfdiscipline in its business, a private company is less likely to face the grind of a public prosecution. However, more importantly, it will also help the company safeguard its reputation as transparency and high ethics make a business even more profitable and sustainable. Corruption by itself is like an economy, so huge in size and expected to be at least a quarter of the global construction economy. It is hard to make a corruption free world, but as responsible citizens of the world, we have a moral obligation to at least control by taking adequate measures in whatever best way possible Our shared vision of a world free of corruption is likely only if we unite on our common goal and implement changes at grassroot level in all sectors and in all walks of life.

section

Doha: SMART city? EXPLORING URBAN SOLUTIONS THROUGH TECHNOLOGY

The urbanisation, industrialisation and digitisation of economies is driving growth in the smart cities sector, says Ghassan Barghouth of Schneider Electric.

USD

billion

The value of the smart city market annually.

May 2014 | QCN

By 2050, more than 70 percent of the worldâ&#x20AC;&#x2122;s expected population of nine billion will live in cities, many of them in emerging markets, according to the United Nations. But at the pace cities are currently growing, they are straining to meet the demands of an increasing population resulting in congestion, challenges in creating steady supplies of food, water and the delivery of services such as the removal of waste. Is a city linked together through technology the answer to all of our citiesâ&#x20AC;&#x2122; problems? Can Doha become a shining example of a modern smart city? by Shehan Mashood

he rapid expansion of the city of Doha is indeed a reflection of a modern city trying to deal with this challenge. Projects already underway such as Lusail City, on the other hand, are an example of what the future of cities could look like. Located 15 kilometres (km) north of the capital, the city will feature a light rail transit system, park and ride systems, large open green areas, and intelligent utilities such as a

district cooling system that is expected to be the largest in the world, saving 675 million kilograms of CO2 each year. A future city, a smart city, will include not just a strong economy, but one that provides all its citizens with a higher quality of life powered by sustainable and environmentally friendly solutions. It is a market that is expected to be worth USD1.5 trillion (QAR5.46 trillion) by 2020, according to a Frost and

technology Sullivan report. Companies such as IBM have already capitalised on this growing industry, with revenues from its smart city initiative Smarter Planet expected to bring in USD7 billion (QAR25 billion) by 2015, up from USD3 billion (QAR11 billion) in 2010. In order for smart cities of the future to be able to solve problems of today, urban planning now requires the creation of an intelligent eco-system of infrastructure and services giving rise to the term ‘smart cities’. Like many terms used to define mega trends, there is not one agreeable definition of what a smart city is. What is clear however is that many see it as an opportunity to place ICT at the centre of an integrated infrastructure of a city that includes smart buildings, smart transportation, smart public services, and smart water and energy.

What is smart, exactly? Highways and mass transit systems, such as the ones we are seeing being built in Qatar, are an essential part of any city to make it habitable. A smart city would, for example, integrate the road infrastructure with vehicles to create an intelligent system where the two communicate with each other in real time. Data gathered from a network of sensors in both vehicles and roads can then show live traffic conditions and the ability to affect changes to deal with congestion and any number of other applications. In fact, the Qatar Mobility Innovations Center (QMIC) recently showcased a connected vehicles concept where the vehicles had the ability to communicate with each other and the road infrastructure. The vehicles were able to receive alerts to avoid collisions, once every vehicle becomes part of the connected grid, industry projections state up to 80 percent of car crashes could be avoided. The system also provided realtime travel time information for dynamic routing and guidance, information about road works ahead of time, alerts of nearby broken down vehicles and emergency vehicles, receiving updates about dynamic speed limit, and even information about optimal driving speed to avoid stopping at upcoming traffic lights. The same goes for the water management system, waste collection or energy grid of a smart city. Proponents

of smart city technologies claim that being able to monitor data in real time will allow the city to make adjustments based on consumption and usage giving citizens a better quality of service and reducing waste. This connectedness and real-time data is driven by a trend called the Internet of Things. Ghassan Bargouth, the country president for Schneider Electric Qatar, Kuwait and Bahrain, tells Qatar Construction News (QCN) that as a firm specialising in energy management, safeguarding existing resources such as power and water are key, and the Internet of Things is one of the most important tools in achieving sustainability. “For every smart solution, the Internet technology used to integrate and consolidate is greater than ever before,” he says, adding, “A quick look into IT growth shows that in 2010, nearly 12.5 billion devices were connected through the Internet. This number is set to increase to 25 billion by 2015 against the global population of 7.2 billion in the same year. The urbanisation, industrialisation and digitisation of our economies are driving this growth.”

The Marina District of Lusail City will feature a smart waste collection system connected through 18km of pipes that will collect 68 tonnes of waste daily. (Image Lusail)

There is a huge sustainability drive not just from a sustainability perspective but also from services perspective, so businesses are investing heavily in how to be better and more efficient in the context of smart cities, says George Galica, head of business solutions at Vodafone Qatar.

QCN | May 2014

technology

“The urbanisation, industrialisation and digitisation of our economies are driving growth.” – Ghassan Barghouth, Schneider Electric.

smart city efficiencies Environmental impact Cities use

60%

80%

of the world’s annual energy needs

19%

of the world’s total electricity consumption is from lighting

30%

energy efficiency can be achieved in 20 years by cities that monitor energy use information

Source: Postscapes: Tracking the Internet of Things

70%

The percentage of the world’s population that will live in cities by 2050.

Greenfield projects such as the Msheireb Downtown Doha project have the advantage of building new technologies into the infrastructure of the city at the beginning. This provides them a significant advantage over many cities and projects that have legacy systems to contend with.

May 2014 | QCN

Smart utilities In Qatar, Barougth says Schneider Electric has implemented a smart leak detection system for Kahramaa, the country’s water utility provider, to conserve water distribution in the network and identify leakages in the network. “The system has significantly reduced leakages and as it expands its distribution network, the system can be expanded across more points,” he explains. Another smart initiative being implemented in Qatar is a waste management system for Lusail City, which is being built north of Doha, the Marina District will have a pneumatic waste collection system connected through 18km of pipes that will collect 68 tonnes of waste daily, without the requirement of any trucks.

Alex Mitchell an associate working in the urban infrastructure planning and solid waste management division of Arup, tells QCN that their firm worked on developing a resource and waste management solution for the Msheireb Development with the ultimate goal of sending zero waste from the development to landfills. The principal objective in sustainable waste and resource management is to use material resources more efficiently, and most importantly to cut down on the amount of waste produced to zero, explains Mitchell. “Over the coming decades, the world must cope with a growing, urbanising global population,” he says, “It must tackle climate change; and it has to find a way for countries to grow their economies while cutting their carbon emissions and reducing the waste produced.” However, while the idea of zero waste for a smart city is popular in marketing materials, there is a debate as to whether this can be realistically achieved in scientific and engineering terms, opines Mitchell. “Absolute zero waste can be achieved only where there is control over inputs and outputs to a system, through upstream design and manufacturing processes and downstream end-of-life management, respectively. The ability to achieve zero waste, therefore, is very much dependent on the scale of the system (project-level, corporate, municipal, city,

technology

Once the Msheireb Downtown Doha development is completed, the project will be the world’s largest collection of LEED certified buildings, a global standard for green buildings. This is expected to create a 32 percent reduction in energy use.

May 2014 | QCN

regional, or national) and the level of control afforded to system inputs and outputs,” he explains.

Who will build it first? Qatar and some of its Gulf Cooperation Council counterparts do have the opportunity to implement such bold national level projects for smart and sustainable ventures. The ability to build greenfield projects, which means building something entirely new, such as Lusail City or the Msheireb Development allows planners to connect all the services in the city at the beginning, which is much easier

than integrating new technologies into an old city, a path many cities in Europe are having, to adopt. While much of the focus of discussion about smart cities has revolved around technologies such as self-driving cars, or apps that find you parking, the real longterm viability of a city, as these smart technologies become a norm for most cities in the coming decades, will be about whether a city is able to adapt to people’s changing needs. Speaking at the recent Arab Future Cities Summit, in Doha in April, George Galica the head of Business Solutions at Vodafone Qatar, said, “Citizens’ expectations have changed, of how they interact with the government, and how they consume has changed. There is a huge sustainability drive not just from a sustainability perspective but also from services perspective, so businesses are investing heavily in how to be better and more efficient.” The key to a successful smart city will be, as he explained, the way governments and business link their applications and services to the citizens’ experience.

QCN | May 2014

advertorial

Supporting the Vision

QQSS IN qATAR Operating throughout Qatar and the Middle East, dedicated to serving the interests of the regions construction and engineering industries. QQSS Quantity Surveying Services have been established in Qatar since 2012, we are a professional quantity surveying services provider and specialist construction cost and contractual consultant to the Qatar construction and engineering industry. QQSS are the obvious ‘Partner of Choice’ providing high quality quantity surveying, estimating and tendering services in both the private and public sectors, which consistently meet and exceed the expectations of all our clients. Our vision is absolute, simple and reflects the ethos embedded in our commitment as a company, that is to firmly establish QQSS as the region’s leading ‘Partner of Choice’ for all commercial and contractual activities. A vision supported through partnership agreements with our clients. In a market that constantly demands greater certainty of professional standards and ethics, QQSS have attained RICS Regulated Firm status. Regulation is by the Royal Institution of Chartered Surveyors, an independent

professional body originally established in the UK by Royal Charter (1868). This designation ensures both professional and ethical standards are of the utmost importance and reinforces our commitment to leading the industry on a regional scale. Qatar has a vision, whether this is the World Cup of 2022 or beyond, wherever one turns you cannot avoid noticing the intensity of construction and infrastructure projects in the region. Stakeholders on construction projects strive to achieve ‘value for money’, which is often measured against clients’ expectations on time, cost and quality. Of these parameters, we firmly believe that the ability to define costs from inception of a project, the development and refining of these costs as the design develops, adopting an appropriate procurement strategy and to control costs throughout the construction phase is fundamental to achieving success. QQSS are characterised by robust commercial; and contractual skills, the integration of

these skills with our management leadership provide clients with an all-inclusive high quality service and in turn assists them to achieve their goals and objectives. QQSS is a Chartered Quantity Surveying Service, we specialise in providing a full range of commercial and contractual support services to clients throughout the MENA region. Our services range from pre contract tender take off and bill of quantities preparation through to construction phase, commercial and contractual management and quantity surveyor secondment. We also specialise in claims and dispute management which one may appreciate is a service in high demand in Qatar. Each and every client has a different requirement, whether this is adhoc contractual support, temporary or long term commercial secondment, advising on or preparing claim submission and/ or defence. We pride ourselves on our flexibility to provide a bespoke, tailor made service that robustly protects our client’s interests.

PETER LOCKS MANAGING DIRECTOR - QQSS Peter Locks, Managing Director, is a dual qualified Quantity Surveyor holding a MSc in Construction Law and Dispute Resolution and a member of The Chartered Institute of Arbitrators. Peter has over 15 yearsâ&#x20AC;&#x2122; experience in both local and international construction projects. QQSS operates throughout the Middle East and is one of the regionâ&#x20AC;&#x2122;s leading commercial and contractual services provider, dedicated to serving the interests of the regions construction and engineering industries.

Peter Locks QQSS Quantity Surveying www.qqss.com.qa

PARTNER OF CHOICE

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May 2014 | QCN

interview: ibrahim jaidah

Qatar’s modern arabic architecture Connecting THE past with the present Many buildings in Doha reflect purely Western architecture, but there are also those such as the Museum of Islamic Art and the Msheireb Downtown Doha development that blend an Arab identity with contemporary design. In an exclusive interview with Qatar Construction News (QCN), Ibrahim Jaidah, CEO of the Arab Engineering Bureau, and one of Qatar’s leading architects, discusses the birth of modern Arab architecture – an eclectic combination of Islamic and modern design – along with his company’s ongoing projects. by Farwa Zahra

A Ibrahim Jaidah, CEO of AEB, says that working with global companies is beneficial for both global and Qatari partners.The local companies learn global standards and the global organisations benefit from the latter’s local knowledge.

merican author Wayne Dyer espouses a concept that transformation literally means going beyond one’s present form. If this holds true, then Doha’s skyline presents an epic case of transformation. In the last few years, the city has gone through a phase of rapid developments now synonymous with Qatar being the host country for FIFA World Cup in 2022. While the construction upsurge has driven modernisation, it has not taken away the cultural roots of the Arab state, something clearly reflected in Doha’s architecture, which features an eclectic blend of modern and Islamic influences. Ibrahim Jaidah, CEO of Arab Engineering Bureau (AEB), says this trend has been on the rise in Qatar as well as in the Middle East in recent years. “There was an era when

“I was very aggressive in grabbing opportunities. I wanted to design projects in prime locations.”

QCN | May 2014

â&#x20AC;&#x153;We are literally seeing the birth of a contemporary Arabic or Islamic architecture happening here in Qatar.â&#x20AC;? - Ibrahim Jaidah.

Al Sharq Village and Spa, Doha. (Image AEB)

Designed by AEB, patterns across the building of Retaj Al Rayyan Hotel in Doha are reflective of modern Arabic architecture. (Image AEB)

600

The total number of AEB employees in 2013, compared with six as a start-up in 1991.

“I am so very proud to see international companies propose designs that are culturally relevant in their essence.”

May 2014 | QCN

[many] cities around the world wanted to follow modern architecture movements, so there was sort of an ignorance to any sort of identity issues,” says Jaidah, who sees the amalgamation of modern and historic architecture as a new movement altogether. “Qatar is now at its peak of identity, not holding onto the old identity but taking the ingredients of our identity and making them into modern designs. So we are literally seeing the birth of a contemporary Arabic or Islamic architecture happening here in Qatar,” adds Jaidah. The AEB CEO defines Arab contemporary architecture as something very modern in terms of sustainability and building materials, but only belonging to the Arab part of the world. This new form of architecture, according to him, is manifested in the Msheireb Downtown Doha project and the Museum of Islamic Art. Seeing similar projects throughout the Middle East, Jaidah is positive about the recognition of Arab contemporary architecture as an established school. “I think that it will be followed by students and generations to come,” he says. “I have been trying to develop this throughout my career and I think the city has become mature enough to develop in this direction.” Within Qatar, Jaidah believes Msheireb and The Pearl-Qatar to be unique and essentially different. With stadium designs for 2022 World Cup currently being proposed, Jaidah sees cultural relevance in many of these works. “I am so very proud to see international companies propose designs that are culturally relevant in their essence. However, I am eager to see the results for the competition for the main stadium,” he says. When asked about the prospects of Arab

contemporary architecture in other parts of the world, Jaidah believes though it may be popular in cities in the Muslim world, it may not suit other locations. Considering the nature of Arab contemporary architecture, the proliferation of this form requires architects with an understanding of Arab art and expertise in modern architecture. Qatar, however, faces a dearth of local architects. “The Qatari force in the private sector in the engineering and architectural industry is much less than one percent, there are hardly any in this industry. All of them are going into the government sectors and the semi-government sectors,” says Jaidah. Explaining the gap currently being filled up by expatriates with architectural expertise, he adds, “There are so many opportunities which are not being taken advantage of. Working in the government and dealing with the big consultants, they definitely get exposed, but nothing really like in the private sector where you have to take all of the responsibility.” Ironically, many of the latest government buildings in Qatar represent the modern Arab architecture in discussion, as says Jaidah, “They definitely have to reflect the local culture.” These projects, additionally, also demand quality. “They have to reach a high standard of quality because the government [is] no longer living in the days where the cheapest will work…now they are looking for top standards,” says Jaidah. Some such government projects, according to him, include the building of the traffic department and Civil Defence, both designed by AEB. Speaking about the company’s projects in 2014, Jaidah reveals, “At the moment AEB is handling some mega projects which are at

different stages of design and construction. Just to name a few, AEB is involved in Doha Festival City’s mega retail project, Marsa Malaz Kempinski hotel at The Pearl-Qatar, Firehouse Artist in Residence, Gulf Mall, and numerous buildings at Lusail.” “There is an influx of architects coming from all over the world. You see people from north, south, everywhere, and you name it; simply because of the high demand as one reason; two, the government has been extremely picky in getting the best in the field,” says Jaidah, who sees the presence of Western architectural companies as positive competition, adding value to Qatar’s architectural legacy. “The top names in the world are doing projects here,” he continues, “which raises the standards and that is why I always say, in a few years, we will definitely be able to bring architectural students from anywhere in the world and show them an encyclopaedia of the best of the best here in Qatar.” Conversely, Jaidah feels that foreign companies benefit from the expertise of companies such as AEB. “We also work with some of these famous architects when they come to practice in Qatar, they seek our advice, our local knowhow, our regulations on very detailed designs as well as the understanding of the contracting,” explains Jaidah, whose company has grown from six employees in 1991 to 600 today. With branches in six countries, AEB has also designed projects in several other countries as well, furthering this pool of international architectural knowledge. Speaking about the growth strategies of AEB, Jaidah discloses to QCN, “I was very aggressive in grabbing opportunities. I wanted to design projects in prime locations, so wherever there was an opportunity to design something, I was grabbing it. Slowly ,I started to get known within the market for my design capabilities and then the growth started. The team that I had standing with me and fighting with me, managed to keep the quality, and then the growth came.” One of AEB’s latest projects is the Marsa Malaz Hotel located on a standalone island at The Pearl-Qatar. Speaking about the project’s uniqueness, Jaidah explains, “Usually when you design a building, there is a front, there is a back… here this building is like [being] on a stage... it is viewed from every corner, so you will

have to treat every inch of the building as an important element. There isn’t really a front, or a back.” Adding to this, the building also has a fifth dimension. “Even the roof was designed very carefully with special terraces,” says Jaidah. The future seems positive for Qatari architecture and construction in general. However, with most building materials being imported, Qatar remains vulnerable to international price hikes, explains Jaidah. While the country is not alone as many GCC countries also depend on imports, Qatar faces an added challenge ahead of the FIFA World Cup 2022 and National Vision 2030, which call for massive construction in the years to come. While establishing its own facilities is the most viable solution for Qatar, innovative architectural features at design stage can help ease pressure to reduce the consumption of imported materials, he feels. “It is the method of construction and the use of more modern manufactured materials that can save you a lot,” adds Jaidah, “the solution is to start manufacturing ourselves in country, rather than having to bring it.” Being the founding organisation of the Qatar Green Building Council, Jaidah has been promoting sustainable construction in Qatar, and sees sustainability as an unavoidable consideration in the near future. “We have so many projects that are under design, that are fulfilling this. Whether it is in government buildings or even mosques… the mosques that we are designing, they are all going green now, so we are contributing extremely heavily,” he closes.

Ibrahim Jaidah, CEO of AEB, sees Western architectural companies as positive competition, adding value to Qatar’s architectural legacy.

The intricate patterns, a common feature of Arabic architecture, are often created inside a building to complement its outer facade. (Image AEB)

QCN | May 2014

Constructio Perspective Insights fro leaders in Q constructio

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The demands on Qatarâ&#x20AC;&#x2122;s construction industry at the moment are immense

Rod Stewart, Qatarâ&#x20AC;&#x2122;s country managing director and managing director, Property Sector, Atkins in the Middle East, says the closest comparison of Qatar can be made with Singapore, a peninsula that undertook transformation to become the sophisticated, international city that it is today.

May 2014 | QCN

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Rod Stewart, Qatar’s country managing director and managing director, Property Sector, Atkins, Middle East. With 35 years of experience in civil engineering industry in the United Kingdom, the Middle East and South East Asia, Rod Stewart is Qatar’s country managing director and managing director, Property Sector, Atkins in the Middle East. In an interview with Qatar Construction News (QCN), Stewart speaks about his focus to help coordinate the activities of various government bodies involved in the delivery of Qatar’s multi-billion dollar transport infrastructure programme. Could you tell us about Akins Qatar? We have a large presence in Qatar working on major projects in the infrastructure, rail and emerging property market. With almost 500 staff members based in Qatar, we look forward to working on some of the most exciting projects in Qatar’s history.

What is Atkins’ role as a resource provider for the Central Planning Office? Atkins is providing consultancy services to the Central Planning Office (CPO). Staff members working on this assignment have a wide range of skillsets including engineering, transport and traffic planning, highways and rail, urban design and planning, communications, GIS, IS, programme assurance, cost estimating, and management consultancy, among others. The CPO was initiated by the State of Qatar in October 2011 in response to a

need for the state to deliver an integrated transport system to world-class standards in order to achieve its National Vision 2030, while delivering the important interim milestone of the 2022 World Cup. The scale of the construction work which is about to take place in Qatar, is unprecedented anywhere in terms of the density of development, the scale and complexity of projects and the timescale for delivery. Via the CPO, Atkins is responsible for coordinating and resolving interfaces between the road, rail, metro and other key programmes which are to be delivered throughout Qatar during the next 20 years.

What is the progress on metro and rail projects in Qatar? Atkins is heavily involved in the Doha Metro project working on Red Line South with our team, mobilised since mid 2013, from setting up IT infrastructure to putting in place project processes, and preparing presentations to Qatar Rail. 80 staff members working on the Red Line South project have now been mobilised to the site office at C-Ring Road as work on the project moves into the Detailed Design Stage.

Other than the ongoing boom in Qatar’s construction sector, how do you see the market as different from others? Never before have we seen such a large amount of construction work planned in such a relatively short space of time. The demands on the industry at the moment, as well as on the people who live here, are immense. The closest comparison can be perhaps made with Singapore - a peninsula that faced similar geographical and economic constraints and undertook a transformation to become the sophisticated, international city that it is today. There is no fixed model for this sort of thing, no blueprint to follow, and so we are presented with one of the most challenging and exciting undertakings ever seen in our industry. More than half the people living here are linked to construction work in some way or another. And it is our sector that will help the government transform this state into a leading international hub for tourism, business and industry.

“Never before have we seen such a large amount of construction work planned in such a relatively short space of time.”

QCN | May 2014

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The scale of geo-engineering works in Qatar is unprecedented Khaled Awad chairman and founder of Advanced Construction Technology Services. Khaled Awad is chairman and founder of Advanced Construction Technology Services (ACTS), a multinational company specialising in material testing and consulting, as well as geotechnical and geophysical engineering operating in Qatar since 2003. In his interview with QCN, Awad explains how to manage inflation in construction costs in Qatar over the next six years. What are some key projects that ACTS is involved with in Qatar? We are involved in a multitude of projects in Qatar. Some of the most prominent ones include the geotechnical and geophysical works for the Inner Doha Re-sewerage Implementation Strategy (IDRIS) with Ashghal. We have recently completed the geophysical works for the first stadium for the 2022 World Cup, Doha Expressway, and we are working on the Green Line and Red Line of Doha Metro for the geotechnical and environmental works. Also, we have site laboratories in Sheraton Park with QDVC, in the Barzan project with Descon at Ras Laffan, and in the East Corridor with China Harbour. Last but not least, we have been awarded the quality control and testing works for the Lusail Road development Project (CP4) with Midmac-Yuksel.

The high cost of building materials is a major concern in Qatar. Where do you see this trend going in the near future? As a simple answer, upward. The issue is how high it will go and how to manage inflation in construction costs in Qatar in the next six years. Three factors will contribute to medium-term stability in the prices: First, the expansion of local facilities (cement factories, aggregate sources, and other materials) as well as well-organised and timed large-scale import arrangements.Secondly, the procurement strategy the

May 2014 | QCN

The Qatar construction market presents a world of opportunities, says Khaled Awad, chairman and founder of Advanced Construction Technology Services.

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Testing and controlling the quality of concrete is important to ensure the strength and longevity of a project.

authorities have started to contemplate, including long-term agreements and framework contracts.Thirdly, the optimal design whereby thorough planning, design efficiency and value engineering are never compromised because of time constraints.

What is the scope of geotechnical engineering in Qatar? In anticipation of the growing need for reliable engineering data for the various Qatar 2022 projects and Qatar 2030 plans, and in order to optimise the design and construction costs of these projects, the local authorities have been effectively addressing the critical importance of geoengineering and have started building a national database of geotechnical design parameters. For example, the work Ashghal is doing in IDRIS, through the framework agreement and through several other projects, will facilitate the quick rollout

of projects in the near future as a large database of ground and soil information is being thoroughly developed. Similarly, QRail has highlighted in their requirements the importance of thorough geotechnical and geophysical investigation and the awarded contractors are aligning with this strategy. In many ways, the scale of geoengineering works in a country of the size of Qatar is unprecedented.

In Qatar and the wider Gulf, what is the general level of awareness/prevalence of building materials certifications by international bodies? There has been a growing awareness of the importance of certification in general, not yet of building materials but mostly of personnel and production facilities. At ACTS, being the local sponsoring of the American Concrete Institute for its certification programmes in the Middle

â&#x20AC;&#x153;Qatar has the chance to demonstrate true leadership in marrying construction growth with environmental stewardship.â&#x20AC;?

QCN | May 2014

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East, in Qatar alone, we have certified more than 350 engineers, inspectors and technicians in various ACI programmes. We are also certifying ready mix facilities according to the US National Ready Mix Concrete Association (NRMCA) to ensure their plants and trucks comply with NRMCA requirements. There is not yet a certification of building materials per se but this can be implemented should the authorities and national inspection bodies consider this a tool for competitiveness in the pursuit of better quality.

What are some challenges of dealing in the Qatari market? It has many similarities with several other Gulf markets with respect to the speed of construction, the large dependence on foreign labour which is an issue given visa restrictions, and the need to address the aggressive weather conditions. However, the Qatari market has also its own characteristics because of the size and limited resources available within the country. Instead of just being a risk, resource scarcity is starting to create a momentum of innovation and creativity, and provide a platform for environmental responsibility, as the re-use of resources has become a need rather than a luxury. Moreover, one important differentiation for Qatar is the development and the successful enforcement of Qatar Construction Standards (QCS).

How did the ACTS’ latest seminar on concrete in Qatar help to “enhance the competitiveness and innovative capacity of the construction industry”? We organise yearly conferences on concrete construction around the Middle East sponsored by international organisations. The goal of these conferences, which have been recently attracting a very large audience, is to be a regional

May 2014 | QCN

forum of discussion for engineers, contractors, suppliers and clients and to highlight the technical challenges addressed by the construction sector while bringing up-to-date information about technology. Our recent seminar about ‘Anchorage to Concrete’ falls in the same context. It addressed the technological breakthrough of anchorage in the USA and the world. Anchorage has been an underestimated design and construction criterion and several structural failures have been attributed to improper anchorage. We presented new techniques of designing anchors to concrete, and these techniques made their way to the upcoming ACI 318 Building Code, which is the main design reference for construction projects in the region.

What is the level of opportunities in Qatar for consultants such as ACTS? The Qatar construction market presents a world of opportunities. These are not just related to the expected hyper growth in the Qatari construction sector as a whole but also to the engineering challenges posed by several of the upcoming projects. Similarly to other Gulf countries that became panaceas for architects or contractors, Qatar will soon become an engineering panacea, which will provide technical lessons and information on a global level. Moreover, balancing construction growth with environmental responsibility seems to be a key strategy for Qatar. Several other Gulf countries tried to prioritise environmental issues but retracted over time due to various constraints. Qatar has the chance to demonstrate true leadership in marrying construction growth with environmental stewardship.

“Balancing construction growth with environmental responsibility seems to be a key strategy for Qatar.”

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â&#x20AC;&#x153;Qatar will soon become an engineering panacea, which will provide technical lessons and information on a global level.â&#x20AC;?

QCN | May 2014

â&#x20AC;&#x153;We are the construction managers of the new Sidra Medical and Research Center at Education City, one of the largest medical centres in the Middle East.â&#x20AC;? - DOnna sultan, CEO, KEO.

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Major projects in Qatar usually tend to be high profile Donna Sultan, chief executive officer of KEO, International Consultants, a company in its 50th year as a professional consulting firm with more than 2400 people and 14 offices throughout the Middle East and Africa, reveals latest updates on KEO’s major projects such as the Doha Zoo and Al Wakrah Stadium. What is KEO’s presence like in Qatar?

Donna Sultan, chief executive officer of KEO, International Consultants.

KEO Qatar has more than 1300 staff in the country. We are fully licensed here in Qatar to provide architectural, engineering, project management, infrastructure and landscape architectural services. Our history of doing work in Qatar goes back to 1990 and we have continually been active in the market ever since. Our strategy has always been to have KEO Qatar be a fully resourced branch that is capable of providing in-country consultancy services, from master planning to preparation of construction documentation for projects. We also have a major presence of expertise and professionals that provide a full range of project and construction management services. That is complemented by our infrastructure expertise available in Qatar that includes some of the most experienced engineers in design and supervision of roads, bridges, and water and wastewater projects. We also have sustainability experts, quantity surveying and contract specialists.

What are some major projects of the company in Qatar? Al Wakrah Stadium will include a future international school for 1000 pupils, says Donna Sultan, chief executive officer of KEO.

May 2014 | QCN

It’s difficult to do justice to select major projects. There have been many fascinating and outstanding landmark projects or programmes that we have been part of such as The Pearl-Qatar and Education City. Currently, we are involved in leadership or major support role for projects that include the New Doha Zoo which has received wide publicity for its unique status as a future major visitor destination, as well as Sharq Crossing - one of the most

“What I see as a serious challenge to any consultant operating in Qatar is attracting and maintaining the best possible pool of talent.”

ambitious infrastructure projects being carried out in Doha today. We are the designers and supervisors of the new Qatar Petroleum District project, one of the largest construction sites in West Bay with built-up area of over 690,000 metre square that includes highly sophisticated energy modeling exercises. We are the construction managers of the new Sidra Medical and Research Center at Education City, one of the largest medical centres in the Middle East. We are PM’s or CM’s for Al Wakrah Stadium, various major sporting centres for the Qatar Olympic Committee, various hospitals related facilities for Hamad Medical Corporation. We are also the engineers servicing the Public Works Authority (Ashghal) on their Expressway Program in a number of their important road projects as well as on their major water and wastewater projects. KEO is also lead designer and consultant for the new Doha Grand Park, a major and important downtown development. We are also involved in detailing and engineering one of the largest new malls in Qatar, the Salwa Resort, new towers at The PearlQatar and design or supervision of new hotels, commercial towers, and many facilities at the new Hamad International Airport and developments in Lusail for various clients. The list does not include many other significant projects in many areas of Qatar.

How do you compare Qatar’s market to other Gulf States, and to the global market? Qatar’s market has been very active in moving forward with projects to meet the requirements of the 2022 World Cup growing at much faster rate than other Gulf countries. However, United Arab Emirates’ project market has started to pick up pace and especially in Dubai in preparation for Expo 2020. Abu Dhabi market shall soon follow suit. Oman and Kuwait project markets are growing, but at slower pace. The

Bahrain market is currently sluggish. Saudi market is very large and has great potential.

What are some challenges consultants like KEO face in Qatar? The construction industry faced a major recession due to cancelled projects or projects put on hold. Since 2008, all of us in the industry have had to face extraordinary competition for any and all opportunities in our marketplaces. No more hotly pursued than in the last years Qatar market where there has been steady and important development projects supported by public funds. We are seeing now that a number of the GCC countries are heating up and there is now a very strong competition for talent. What I see as a serious challenge to any consultant operating in Qatar is attracting and maintaining the best possible pool of talent. Excellence is driven by best professional talent a country or a company can attract. Another observation I would make is that major projects in Qatar usually tend to be high profile with high priority profiles that demand tight deadlines. This does place unique challenges and stress on any organisation participating in such projects, but we are up for them.

What has been the progress on the New Doha Zoo, when is it scheduled for launch? Qatar’s Public Works Authority (Ashghal) recently confirmed that New Doha Zoo is due to begin construction works this year and that site enabling works are already in progress. The project, which is set to become a world-class destination and a unique zoological experience, is expected to be opened to the public in Q4 of 2017. Spanning an area of over 75 hectares, the new zoo will be seven times the size of the old zoo. It will boast a drive-through safari displaying animals and plants from around the world, including an African Savannah, an Asian Woodland, and a South American

“Since 2008, all of us in the industry have had to face extraordinary competition for any and all opportunities in our marketplaces.”

Rainforest. Facilities will include a unique land bridge to allow the animals to roam to the adjacent Aspire Park; an educational and conservation Discovery Centre; multiple entertainment and food and beverage outlets and the capability to build three hotels.

What are some updates on Al Wakrah Stadium? This certainly is one of KEO’s most challenging and dynamic projects in Qatar. The latest is that early works began late December 2013 and main packages of construction are due to begin later this year. Al Wakrah will be able to house 40,000 people with the top stadium grandstands that will be demountable to allow the capacity to be lowered to 20,000. Other features include climate-controlled practice pitches, a multipurpose indoor arena with a variety of sport facilities. It will also include a future international school for 1,000 pupils. As was reported in a recent statement released by the Secretary General of the Supreme Committee for Delivery and Legacy, the completion of the Al Wakrah Stadium is set for 2018.

QCN | May 2014

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All suppliers’ focus is now on Qatar Ramez Chehab, equipment division manager, Alshaya Trading Company. Equipment division manager of recently-launched Alshaya Trading’s Heavy Equipment Division in Qatar, Ramez Chehab, explains how the trend in Qatar is shifting from renting heavy equipment to buying them. Could you tell us about Alshaya Trading? Alshaya group with diversified sales and operation activities is one of the leaders in retail business and a major player in supplying building materials such as ceramics, marble, sanitaryware, kitchen, office furniture, heavy equipment, shelving, and many other products which serve the growth and development of the construction industry.

What is the company’s extra presence in Qatar?

Equipment division manager of Alshaya Trading Company, Ramez Chehab tells that the demand for last two years was for earth moving equipment as most of the awarded contracts were for the construction of infrastructure.

Alshaya Trading Company is strengthening its presence in the Qatari market by expanding its business. Recently we have opened our Heavy Equipment Division. Our target is to provide experienced sales engineers to work not only as sales staff but also as advisors, while benefiting the clients as we also have on board a wellestablished and skilled service team to support and maintain our products.

Tell us about the products you supply, manufacturer details and product variety? Heavy Equipment division’s prime target market is the construction industry. We are suppliers of a variety of international brands such as Powerco Generators from the United Kingdom, Maximal Forklifts from China, Icaro steel bar bending and cutting machines from Italy, cradles and hoists from Ketong China, and many other products for concrete and road construction.

Which of these products are in high demand in Qatar? The demand for the last two years was for earth moving equipment as most of the awarded contracts were for the construction of infrastructure. Starting in 2014, the demand for equipment for buildings and tower construction will be the major requirement to build the facilities required for 2022 World Cup.

May 2014 | QCN

“Qatar is a growing market and within the next five years, we expect the market to have the second highest demand for heavy equipment after the KSA.”

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“The trend in Qatar was for rental because of the shortterm projects, but now the trend is to buy as the new projects are big enough.”

What are some opportunities Qatar’s heavy equipment market offers? Qatar is a growing market and within the next five years, we expect the market to have the second highest demand for heavy equipment after the KSA. In view of this, business opportunities will be open to the companies who supply the best quality and offer the fastest delivery and best aftersales support and services.

“equipment will be a major requirement to build the facilities required for the 2022 World Cup.”

How competitive is the local market? Very competitive. All suppliers’ focus is now on Qatar since the demand for heavy equipment in European and GCC markets is decreasing.

Will the port’s limited capacity affect the timely delivery of products? It might affect delivery time for other suppliers, but for us at Alshaya Trading Company, we can support our branch in Qatar by offering equipment from our head office branch in Kuwait, carrying stock for immediate delivery.

What are some of the latest products in the market? How responsive is Qatar’s market in adopting new technologies? New products in the Qatari market are the tunnelling equipment, which are tailormade in Europe to be supplied especially for the Metro project. High technology equipment for hospitals is also adopted in Qatar’s hospital project specifications.

Buying products or renting them, what are the general trends in Qatar? The trend in Qatar was for rental because of short-term projects, but now the trend is to buy as the new projects are big enough and it will be more feasible to buy the equipment instead of renting them.

QCN | May 2014

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General manager of Jaidah Electrical division, Paolo Bruno says the advantage for Jaidah, as local group, is the wellestablished presence and the deep knowledge of the market trends.

Competition in the market is high and always around the corner Paolo Bruno, general manager, Jaidah Electrical division.

Paolo Bruno, who joined Jaidah Electrical division as general manager in 2013 with the challenge to bring the electrical division to the top of its performance, aims to create an identity for this division as a standalone unit recognised as one of the top players in Qatar’s market. How early in a project’s development does Jaidah Electrical division get involved? Does getting involved earlier as a supplier yield better results? We are involved in the projects from the inception stage because we follow the movements of the major developers as well as the consultants that are fixing the electrical specifications. Obviously, there is a certain advantage in following up the projects from the beginning in order to specify our products portfolio and to establish a trustful relationship with the consultants, as they give the final approval of the best bid. But the competition in the market is high and always around the corner.

What is the market like in Qatar? In spite of many talks about the

May 2014 | QCN

booming of the market, we have to realise that in reality the execution of most of projects is still to come. The country is in the stage of developing the infrastructure backbone. On the other hand, Qatar is in a much better position in comparison with the rest of the world because of its consistent plan of growth and development for the whole country, mainly driven by the FIFA event’s deadline.

How do you compare Jaidah Electrical’s products to those of some global players? Jaidah, a local player for over a century, chose the products portfolio in order to respond to the demands and needs of the market. Therefore, we do have top brands in our portfolio on which we have established a successful partnership for sustainable growth

in the Qatar market. The advantage for Jaidah, as local group, is its well established presence and the deep knowledge of the market trends, as well as a professional team of various nationalities working to satisfy the customers’ needs.

What are some of the challenges you see in Qatar’s market? The actual challenges in Qatar’s market are the lack of liquidity and the slow release of the projects, from the execution point of view. This year, we expect some positive movements and from next year, we should see a progressive growth of business. Another positive challenge is the fact that the country wants to become one of the hubs of the Middle East in technology, research, healthcare, transportation and sports.

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“the challenges in Qatar’s market are the lack of liquidity and the slow release of projects.”

QCN | May 2014

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Qatari Courts process CAN often BE confusing for international counterparties With ten years-plus experience in construction law, James Bremen, partner in Herbert Smith Freehills’ Doha office, speaks about the legal environment in Qatar’s construction industry. Being the eighth largest law firm in the world, Herbert Smith Freehills in Qatar offers services in the areas of energy, corporate, projects, construction and general disputes. How easy or difficult is Qatar’s legal environment for contractors in the construction sector?

James Bremen, partner in Herbert Smith Freehills, Doha office.

The legal and contracting environment in Qatar can be a challenging one for contractors. There is sometimes significant misunderstanding of the meaning and impact of Qatari law as well as a tendency to bring a very Western approach to both the form and terms of contracts, and the manner in which they are administered. This approach is sometimes not the best way in which to manage projects in Qatar. There remain very significant opportunities for international contractors in Qatar, but they need to invest real effort to come to terms with both the legal and the cultural environment that they are operating in.

What is the most common nature of legal disputes you have seen in Qatar’s construction industry?

James Bremen, partner in Herbert Smith Freehills’ Doha office, says it would be reasonable to assume a verdict in Qatar could take between one to two years to be reached.

May 2014 | QCN

The nature of disputes in Qatar is not at all different to those we see in any emerging jurisdiction, on any mega project. The key areas of dispute are time and associated costs, variations (scope changes), and payment. Often the opportunity to put in place measures to manage and mitigate these risks is not capitalised on by both employers

and contractors at the time of contracting. The forms of contract sometimes used do not assist in managing these risks, and the jurisdiction-specific idiosyncrasies of the market. This is often compounded by parties not fully understanding the legal consequences of Qatari governing law. The areas of concurrency and prolongation costs are very often misunderstood and cause major differences of opinion between employers and contractors.

What are some measures you suggest to mitigate these disputes? Some forms of contract used in Qatar are not appropriate for the types of work undertaken. For example, employers prefer a strong risk transfer to the contractor but also wish to retain a high degree of control, and these two approaches are not always compatible. Where possible, contracts should be negotiated. Additionally, often scopes of work are rushed to market with the result that variation disputes can arise. This is in neither party’s interest and a clear scope at the outset ought to be both the employer’s and contractor’s goal. Finally, some contracts have issues in terms of the enforceability of some of their terms, this creates uncertainty and is a sure means for disagreement. These areas ought to be

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addressed. There are a number of other areas, such as programme management, which merit mentioning. But the way to mitigate disputes in Qatar is to negotiate a clear, complete and fully enforceable contract, and to then manage that in an open, transparent and collaborative manner.

What are some legal repercussions for key parties involved in the projects that face delays? Should projects be delayed, some contractors may have an entitlement to breakage costs where there has been a termination for convenience, or prolonged suspension by the employer. That may have some impact on particular contractors’ operations in Qatar more generally. At the same time, the “seam” or “project on project” risk in Qatar is a real one, with so much planned to be done over the next decade. A change in the works packages is also likely to have some impact on the interface risk with other projects and their programmes. It is of course possible that any reduction in the number of packages/ projects may have a favourable impact on certain projects, due to a slight reduction in competition for materials/labour and site access, but that will be different on a project by project basis.

What do you think are major reasons behind project delays in Qatar? There are a number of issues around delays. Three leading causes are: 1. Sometimes employers have unrealistic programmes which contractors don’t challenge at the time of contracting but plan to attack as soon as they are on site. 2. Allocation of risks under some contracts place risks on some contractors which they cannot manage and so these risks cause disputes; and 3. Both employers and contractors need better communication and to have empowered people running their projects so instructions/agreements can be made in a timely manner.

How are external factors (such as material delays) translated in penalties in case of delays? Should the contractor have responsibility for the timely progression of the works and he is in delay because of issues surrounding

May 2014 | QCN

his inability to procure adequate materials, then, after a certain time, there is the possibility that the employer may impose liquidated damages for the delay in the works. These issues ought to be negotiated at time of contracting. Two key areas of contractor concern in Qatar presently is both availability of materials (the New Port Project is being constructed to ease pressure on the existing facilities) and also contractor’s exposure to risks arising from permitting and government agency interfaces.

Compared to other parts of the world, how fast are the verdicts announced in Qatar? Most construction contracts in Qatar are governed by Qatari law and subject either to the jurisdiction of the Qatari Courts or to international arbitration. The Qatari Courts process is one which is often confusing for international counterparties, and can take a reasonable amount of time to produce verdicts. That said, large-scale international arbitrations also often take very considerable amounts of time to resolve. For those commencing proceedings under either Qatari Courts or international arbitration in Qatar on substantive matters, it would be reasonable to assume a verdict could take between one to two years to be reached. This will of course vary upon the complexity and nature of the matters in dispute.

Could you tell us about the complexities of a legal dispute over projects involving multiple parties? Usually, the liability of contractors will be joint and several for the totality of the work. Sometimes, one joint venture (JV) partner performs better. Such issues then cause difficulties for the project as a whole. The “performing” joint venture partner then approaches the employer with a view to taking over the balance of the work. However, complex issues of liability arise and this is often legally difficult to structure where the remaining contractor is in dispute with both the employer and its own JV partner. These complexities are often added to by disputes arising at the subcontractor level, and while there are no direct contractual relationships between the employer and the subcontractors, the subcontractors often have practical control over the site and also have certain rights to proceed against the employer directly under the Qatari Civil Code.

“Subcontractors often have practical control over the site and also have certain rights to proceed against the employer directly under the Qatari Civil Code.”

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Giving national character to

May 2014 | QCN

human resources

Qatarâ&#x20AC;&#x2122;s construction industry

n the future, will we look at the physical infrastructure of Doha, as we do at the pyramids today, and wonder how and why such monumental creations were raised from the desert? More importantly, will we have an answer, other than pathos and the virtually endless supply of expendable cheap labour? The urban landscape of Doha has changed beyond measure over the last decade. The construction industryâ&#x20AC;&#x2122;s talent landscape, however, is static, sclerotic and anachronistic by comparison. The pattern of traditional employment of people and productivity practices have remained durable throughout this period of growth, but this will ostensibly not be the case in the next 10 years and beyond. With global energy prices remaining high, new major transport infrastructure projects in delivery and the largescale preparation for 2022 World Cup looming, Qatarâ&#x20AC;&#x2122;s construction industry will no doubt expand at an even faster rate in the next 10 years than it has in the last. This means employment opportunities within the industry, at all levels, will also continue to expand. Nonetheless, it is unlikely that general expansion will lead to a massive increase of Qatari employment in construction in its current form, within the next decade at least. There will continue to be a reliance on foreign labour to complete the ambitious government-sponsored and private sector construction projects. This means that there will be a net increase of many hundreds of thousands of new labourers residing in Qatar during this period, many of whom could be vulnerable to unwarranted risks in their living and working conditions, as well as the manner in which they

With greater labour scarcity at home and heightened competition from other Gulf nations, each with their own ambitious projects underway, relying heavily on foreign labour is not a sustainable strategy for Qatar. So argues David Jones, founder and managing director of HR consultancy, The Talent Enterprise, who explains why the construction sector in the country must see a higher number of nationals participating, both in public and private sector.

are recruited from their home countries, as well as their poor treatment and exploitation by unscrupulous employers, agents and peers. In many ways, construction and infrastructure development represents greater potential risks than potential benefits for the perceived legacy of large projects, such as the FIFA World Cup. International scrutiny of current labour laws and practices is already increasing in this industry in particular. Any further accidents or incidents will continue to attract criticism. If the current lead-up to the FIFA Brazil World Cup this year is any indication, workers, along with international and domestic campaign groups, will gain more leverage as 2022 approaches and also even during the event itself. With just over 70 months to go, now is the time to continue a progressive and measured approach towards labour reform, not only as the right thing to do, but more importantly as the smart thing to do. Initial moves have already been made, and these need to continue to avoid appearing short-term in nature and knee-jerk reactions. Providing and regulating a structured mechanism for representation and resolution, perhaps moving towards a labour framework similar to that of Oman, would offer a channel for any disputes to be resolved more effectively and efficiently. Qatar is rightly proud of the visual impact of its incredible built environment and such measures help to ensure that it is equally proud of how that built environment was delivered. Nonetheless, local labour visibility in the development and delivery of the 2022 World Cup should be a top priority. A sense of achievement in having delivered a major project such Increasing national as the World Cup and welcomed and hosted hundreds of thousands of employment within business, sporting and cultural leaders, the construction will be a source of national pride for industry is the smart generations to come. Our research at The Talent thing to do, whether Enterprise into what drives highin terms of performing Qataris in the private strengthening bids sector today indicates that national pride is a major motivator for local for government talent to be attracted and retained contracts or within the private sector growth sustaining industries, including construction. Arabtec announced its intention to productivity. hire 10,000 nationals from across the Gulf Cooperation Council (GCC), and this has shifted the debate about

QCN | May 2014

human resources increasing national employment within the industry from a purely CSR perspective, to being the smart thing to do, whether in terms of strengthening bids for government contracts or sustaining productivity. Technological change will also have a major impact on labour markets within the industry in the decade ahead. The current reliance on hiring expatriate labour, the familiar ranks of men with shovels, along with technicians and managers, will change beyond recognition. Greater labour scarcity at home and heightened competition during the same period from other nations in the region with their own ambitious projects underway, would mean this is not sustainable in its current form. Different segments of this labour market will be attracted by different things - executive autonomy on quality projects will be important for managers and technicians, while decent earnings, reliably paid with respect will be important for semi-skilled labourers. Whilst it may seem slightly fantastic, the impact of robotics is already affecting labour markets in Doha in other industries due to the limitless labour supply and lack of need for increasingly expensive and controversial expatriate labour. Greater augmentation or replacement of purely human labour is around the corner, and this increases the proportional expansion of new types of jobs within the construction industry – hardware maintenance, remote control centres,

Implementing innovative policies and approaches to talent management within construction could be the industry’s greatest legacy for Doha and the GCC for the rest of the 21st century.

and project and resource management to mention a few, all of which will be potentially far more attractive to Qataris in the future. This will change the face of an industry which has traditionally not been seen as attractive to Qataris. So far the development of Doha’s urban landscape has focused on building the physical infrastructure required for delivery. Building the human capital and psychological infrastructure of the nation is arguably more important for the longterm continued development of Qatar. Implementing innovative policies and approaches to talent management within construction could be the industry’s greatest legacy for Doha and the GCC for the rest of the 21st century.

While the development of Doha’s urban landscape is in focus, building the human capital and psychological infrastructure of the nation is more important, writes David Jones.

David Jones is the managing director of The Talent Enterprise. Jones has worked for more than 23 years spanning consulting and line HR in Europe & the Middle East. He is the co-author of Unlocking the Paradox of Plenty – A Review of the Talent Landscape in the GCC.

May 2014 | QCN

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Localising QATAR CONSTRUCTION Why more Qatari nationals must be recruited in the industry

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