QCN Yearbook 2015 by Firefly Communications

rice P d s FixReepair s ote i e qu ce w uâ&#x20AC;&#x2122;ll pay. i r p The price yo the

Arabian Agencies Company, L.L.C. New Industrial Area, St., 43, Bldg. 433,P.O. Box 22329 Tel. Nos. 44500925/6, 44600506 E-mail:araco@araco.com.qa

Fixed RepaPrice irs The the

pric e pric we quo e yo uâ&#x20AC;&#x2122;ll te is pay.

Arabian Agencies Company, L.L.C. New Industrial Area, St., 43, Bldg. 433,P.O. Box 22329 Tel. Nos. 44500925/6, 44600506 E-mail:araco@araco.com.qa

YearBook 2015 Contents ANALYSIS 18 Qatar PROJECTS

ENVIRONMENT & sustainability

Professionals from various sectors linked to the construction industry offer analysis on the construction, project financing, real estate, legal aspects, human resources and mechanical, electrical and plumbing works in Qatar.

Qatar PROJECTS 34

TECH & LEGAL 64

FIFA risk factors: Can Qatar stand the test ahead of the 2022 World Cup?

Smartifying construction: Can mobile apps assist the industry in Qatar?

The National Museum of Qatar: Will it depict its designer’s vision?

Doha Metro: Can it work amid Qatar’s climate, high percentage of private cars and its urban environment not conducive to a rail network?

Building Information Modeling: Shaping the future of Qatar construction

Industry insights: Qatari courts processes can often be confusing for international counterparties

Column: Qatari legislation related to construction in 2014

ENVIRONMENT & sustainability 48 50

A mountain of waste: Qatar’s environmental challenge could also be a great area of untapped potential

Winds of change: Moving from conventional to sustainable HVAC systems in Qatar as Doha emerges as the 12th most polluted city

TECH & LEGAL

Sustainability: Is Qatar’s construction sector ready to make green buildings mandatory?

Column: Recycling in Qatar’s construction sector for sustainable development

RESOURCES & equipment 80 82

HR: Why Qatar’s future construction scene will see a high number of nationals involved, both in public and private sector

Rising costs: Causes and repercussions of Qatar’s construction inflation

Heavy equipment: Qatar’s PMV sector gearing up for the challenge

Industry insights: Huge demand for trucks due to the new projects released by the government

2015 | QCN YEARBOOK | 5

YearBook 2015 Contents 80

RESOURCES & equipment 97

100

Industry insights: The practice of undercutting is not sustainable in the long term

REAL ESTATE & development 128 130

Towards sustainable regeneration: Engineer Abdulla Hassan Al Mehshadi, CEO of Msheireb Properties, discusses the inspirations, details and prospects of Msheireb Downtown Doha

134

Industry insights: Landlords in Qatar may need to adjust their pricing strategies if they are to secure tenants

Column: A new approach to hiring candidates with the right set of construction skills

CIVIL & Contracting 102

102

128 6 | QCN YEARBOOK | 2015

104

Connecting the past with the present: Qatarâ&#x20AC;&#x2122;s leading architect Ibrahim Jaidah discusses the birth of modern Arab architecture

109

Industry insights: Major projects in Qatar usually tend to be high profile

113

FIFA: Is Qatar on the right track ahead of the 2022 World Cup?

117

Industry insights: Expanding into different fields provides us experience and recognition

CIVIL & Contracting

REAL ESTATE & development

121

Industry Insights: Construction in Qatar is challenging, yet rewarding

125

Industry Insights: Strategic vision for a diversified group

PLUS: From the Editor 10 A year in quotes 14 Interview: Project Qatar 30 Tenders 139

PrOUDly Made in Qatar

Al Khayarin Group Of Companies 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 deputy editor ameen kader syed a.syed@firefly-me.com associate editor aparajita mukherjee a.mukherjee@theedge-me.com special projects editor roisin bailey r.bailey@firefly-me.com international sales director julia toon j.toon@firefly-me.com | +974 66880228 head of business sales manu parmar m.parmar@firefly-me.com +974 33325038 sales manager adam kynnersley a.kynnersley@firefly-me.com +974 66079716 deputy sales manager megan o’connor m.oconnor@firefly-me.com +974 5542 2741 senior advertising manager UAE nesreen shalaby n.shalaby@urjuan-me.com + 971 50 719 9707

• PVC Electrical Conduits & Fittings • uPVC Drainage Pipes • uPVC Soil-Vent Pipes • uPVC Duct Pipes

• • • •

uPVC Q-Tel Duct Pipes uPVC High Pressure Pipes uPVC Bends & Couplers Polyethylene Sheets for Construction & General Use

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 finaliser ron baron 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

• P.O. Box 37461, Doha-Qatar • Tel : +97444114320 • Fax: +97444114324 • Email: info@alkhayarinplastic.com • Web: www.alkhayarinplastic.com

Kg plastic QCN YearBook.indd 2

4/20/15 12:09 PM

editor’s letter

In reaching QCN’s first milestone, we thank our readers, contributors and advertisers for their support. Credit equally goes to the magazine’s creative team for making QCN what it is today.

10 | QCN YEARBOOK | 2015

QCN was launched exactly one year ago. Since then, Qatar has delivered some of its most iconic projects. The country’s first hub-andspoke Hamad International Airport launched last year, accommodating a passenger capacity of 30 million. Sheraton Doha went through a complete overhaul, while the formerly less-explored Banana Island transformed into Anantara resort. With work started on Al Wakrah Stadium, by December 2014, the Supreme Committee for Delivery & Legacy unveiled designs for three more of the eight announced stadiums for the 2022 World Cup – budgeted around USD4 billion (QAR14.5 billion), as calculated by Meed Projects. At present, Qatar’s construction sector stands at a combined approximate value of USD276 billion (QAR1 trillion) for currently planned and ongoing projects. Among the most imminent projects is the USD7.4 billion (QAR27 billion) Hamad Port, slated to start operations in July, followed by the USD8.25 billion (QAR30 billion) Barwa City due this year. Moving on to next year, Msheireb Downtown Doha – featuring the world’s largest collection of green buildings – is scheduled to open its doors sometime in 2016. The list of planned mega projects does not end anytime in the next few years. Qatar’s integrated rail systems – allocated with a hefty USD40 billion (QAR146 billion) investment plan, standing only behind the Lusail City in terms of budgetary value – will take another decade to be up and running. Then, of course, we have stadiums and more than 60 proposed training camps for

the 2022 World Cup, planned to be delivered by 2020. Add to this project pipeline the USD30 billion (QAR109 billion) contracts expected to be awarded in 2015 alone, and one is left with no doubt about the enormous, albeit challenging, scope of Qatar’s construction industry. Indeed, the pace and progress of ongoing and planned projects is daunting for organisations and people alike. For the residents, Doha’s transformation is a palpable reality. The sheer influx of expatriates, primarily driven by the construction boom, is so pronounced that it can be felt on a day-to-day basis. Reaching to and from work never took hours spent in traffic. Finding a parking spot at malls or parks once was a matter of a few minutes. Getting your child an international school admission was not as competitive as it is today. Traffic diversions were not a norm. Waiting lists at hospitals once were much shorter, while residential rents increased but only steadily. And with the rising number of vehicles on roads and escalating energy demands to meet the needs of Qatar’s growing population surpassing 2.3 million in March this year, the country’s environmental challenge was not as imperative as it is today. While these challenges are here to stay, let us not forget that Qatar’s construction industry has a promising future as it emerges among the most favourable nonhydrocarbon sectors contributing towards the countr y’s gross domestic product. In the context of the ongoing oil price crisis, for Qatar, the timing of rising construction activities is even more

welcome. Commemorating the nation’s remarkable journey towards 2022 and beyond, QCN Yearbook brings together the best of QCN from the last year, along with some fresh stories and interviews. From project insights and in-depth interviews, to analysis and opinions of leading industry professionals, in our first anniversary issue, we cover the key subsectors shaping Qatar’s construction landscape, even if it comes at a high cost with Qatar standing as the 17 th most expensive market for building and construction. I n r e a c h i n g Q C N ’ s fi r s t milestone, we thank our readers, contributors, and advertisers for their continued support. Credit equally goes to the magazine’s creative team for making QCN what it is today. Enjoy reading our special compendium issue.

Farwa Zahra Editor

YOur VisiOn OuR ExPERTISE

SERVICES:

• • • • • •

Infrastructural works Roads and Infrastructure works Concrete pavements Public green areas Swimming pools 3D Luxury villas

• • • • • •

Luxury villas Double villas compound Touristic complex Luxury restaurants Residential complex Miscellaneous stone and marble works

ISO 9001:2008; 14001:2004; 18001:2007

Contact: Techno Project International AL Gassar Tower, 8th Floor, West Bay - P.O. Box 22210, Doha, Qatar Tel: +974 4442 3008 Fax: +974 4442 3007 Key Contact: Mr. Antonio Tonizzo : E-mail: gm@tpi-qa.com Mr. Walid Annabi : E-mail: marketing@tpi-qa.com

‫تكـنـو بروجـكت انترناشـيونال‬

industry feature views story

A YEAR IN QUOTES Over the year, we asked industry professionals about key challenges in Qatar’s construction industry, impact of oil prices on the market, major disputes in the sector, and the country’s most attractive projects, among other topics. Here is what they had to say.

“If [the oil price drop] continues, it will of course reduce demand for resources and materials in the region which will, to some degree, suppress the rate of construction cost inflation.” Nick Smith, partner at EC Harris Qatar, adds that while it is very difficult to predict the future trend of oil price in the region and its impact, the company is witnessing increased levels of concern from some clients particularly within the public sector where funding is tuned to oil and gas revenues.

“Reduced income over the longer term will mean that the government will have to prioritise budget allocations based on what is most essential, even in the infrastructure sector.” Gopal Balasubramaniam, partner and head of audit at KPMG, Qatar, believes the oil price drop is not going to impact Qatar’s construction industry in the immediate future but can impact the industry if it prevails for long.

“A key concern for all projects, and especially those working to immovable deadlines, will be the avoidance of disputes and, where disputes do arise, ensuring their timely resolution.” Nick Pinder, senior associate, Eversheds LLP, says the law firm is increasingly being asked to provide advice in seeking to resolve issues before they evolve into disputes, which might threaten projects. He sees the proactive management of disputes as being critical to successful project delivery in Qatar.

“Disputes are a natural occurrence among parties in the construction sector, due to various factors, and these disputes have several consequential effects, such as delaying delivery, and negatively impacting cash-flow.” Khalifa Al Misnad, partner, Al Misnad & Rifaat, says the effective and swift resolution of disputes is essential in the sector in order to progress required construction works, and to boost confidence and protect the respective investments of all parties involved in the industry.

14 | QCN YEARBOOK | 2015

“The drop in oil prices will not have an effect on the large infrastructure projects in Qatar and the Gulf Cooperation Council, which have been budgeted and committed [to].” Engineer Khaled Awad, chairman for Advanced Construction Technology Services, says that the infrastructure projects which are critical to the diversification of the Gulf Cooperation Council’s economy and the growth of non-oil sectors will not be impacted by the ongoing decline in oil prices.

“Any impact will be secondary. The government has made clear that it will preserve its capital programme to help sustain gross domestic product’s growth.” Dr. Rupert Booth, chief economist, Faithful+Gould, says that Qatar’s construction sector will be increasingly supported by private sector investments driven by 2022 infrastructure and while there have been hydrocarbon project cancellations, which could have knock-on effects, it will help contain and not eliminate cost escalation.

“The two greatest challenges facing the construction industry are project delays and payment delays. Any delay in receiving approvals and payments will seriously affect project progress.” Vasanth Kumar, CEO, Arabian MEP Contracting, says that timely decisions from stakeholders such as clients, consultants and local authorities play a vital role in successful completion of any project as contractors alone cannot do wonders.

“Qatar has yet to offer more attraction to international resources in order to mitigate difficulties for existing construction sector players.” Ali Naji, senior project manager at Hamilton Project Management in Qatar, says the biggest issue facing Qatar’s construction scene is related to resources in terms of manpower availability and materials’ procurement required to tackle the challenge of the limited time available to deliver both infrastructure and private development projects concurrently.

STRABAG SE Group is one of Europe’s leading Construc:on companies offering clients an extensive range of services and developing customized solu:ons for technically and economically op:mized buildings and infrastructure of all kinds and sizes. With the strong presence of Strabag Qatar W.L.L. and Züblin Interna3onal Qatar L.L.C. for more than 10 years, both opera:ve brand names of STRABAG in the Qatari market; STRABAG con:nues to contribute its extensive experience and high proficiency in all fields of the building industry such as: -‐  Turnkey Projects -‐  Road Infrastructure -‐  Civil Engineering -‐  Tunneling & Microtunneling -‐  Ground Engineering With our GCC (Qatar, UAE, Saudi Arabia, Oman) and local market experience in handling construc:on projects at the highest level we have made a name for ourselves – worldwide. Vision, courage and innova:on have been the keys to our success all around the world. For us it important to always find the best customized solu:on and to make construc:on projects a success in terms of technology as well as economical efficiency. With the STRABAG team concept we offer our customers a performance spectrum covering all the building-‐related tasks – from the projec:on to the planning and execu:on up to the smooth start up of opera:ons.

Strabag Qatar W.L.L. P.O. Box 22980 Tel: +974 4499 0300 Fax: +974 4499 0390 Email: doha.oﬃce@strabag.com Website: www.strabag.com

Züblin Interna3onal Qatar L.L.C. P.O. Box 23041 Tel: +974 4499 0312 Fax: +974 4499 0332 Email: info.doha@zublin-‐interna:onal.com Website: www.zueblin.de

industry feature views story

“Magnitude and complexity of current and planned infrastructure projects is a historic record for Qatar. Some of the major concerns for any project developers are inflation and meeting deadlines.” Ibrahim Jaidah, CEO, Arab Engineering Bureau, predicts that in less than a decade, Doha will have one of the most advanced infrastructure facilities in the world.

“Growing concerns around the availability of key materials continues, with shortages of concrete and steel at the top of the list, and this will only increase further due to the acceleration of projects.” Matt Kitson, regional director of Hilson Moran, Qatar, says recycling construction waste should be adopted using a district-wide recycling network to overcome material shortages.

“Even if the supply issues are resolved, it is likely that the volume of material required by Qatar [and the region] will cause unplanned and significant cost inflation.” Anthony Holmes, co-founder and director of the Institute for Infrastructure Studies in the United Kingdom, says for Qatar’s construction, a new concern is regional political instability, which can potentially have a detrimental effect on the supply and transportation of construction materials.

“An important factor in the Qatar market is price escalation, most large-scale projects are based upon a fixed-price element and this is a high-risk element.” Mark Rudman, Faithful+Gould’s country manager for Qatar, says another key issue is logistics and material procurement as it requires consideration and forward planning. Procuring the right resource for the entire supply chain is always crucial and as the market is heating up from both an infrastructure and property perspective, this is becoming more challenging for clients, consultants, contractors and subcontractors alike. Another challenge, he adds, is recruiting the right people.

16 | QCN YEARBOOK | 2015

“2015 is going to be the year for the Qatar 2022 stadium and precinct build programme to really make its mark here, as construction ramps up across the portfolio.” Chris Scudamore, partner, PwC Qatar, says that having the chance to contribute to the delivery of the 2022 World Cup – whether it be the construction itself, or the related strategic or economic development projects – is both a great experience from a professional standpoint while also directly contributing to the national development of Qatar.

“Qatar Rail projects look attractive not only because of the multibillion dollar spend, but also because these projects have had very rapid mobilisation.” Manfield Mandigora, assistant director of Infrastructure & Capital Projects, Deloitte Qatar, adds that projects’ rapid mobilisation provides comfort that they are being well managed compared to some public projects, which have suffered from bad publicity due to delays. Ashghal, he adds, is reviewing its form of contract, which will likely result in making Ashghal projects more attractive.

“The rail and port projects are most attractive as they are essential infrastructure required to help Qatar continue to grow and flourish.” Scott Lambert, regional head of Construction & Infrastructure, Al Tamimi & Company, adds that all transport infrastructure are key drivers to any economy. After transport projects, he says, projects related to the 2022 World Cup such as the stadiums are of key importance as they will be an opportunity for Qatar to present itself to the world with innovative design.

“The reduction in the price per barrel of oil is unlikely to greatly impact Qatar’s ability to progress these mega projects, and contractors can find some comfort in knowing that their employer has sufficient cash to meet its obligations.” Laura Warren, partner of Projects & Construction at Clyde & Co, says that it is essential, like in any bidding process, that contractors are aware of the risks arising from doing business in any developing market.

analysis feature story

Big Numbers: Qatar’s construction in figures Ahmed Fouad brings together some big numbers shaping Qatar’s construction industry. With the launch of the Hamad International Airport, Qatar’s construction industry made a remarkable progress in 2014. Other significant moves during the same period included the awarding of all Doha Metro Phase One lines, and the completion of three state-ofthe-art multipurpose halls that hosted the Men’s Handball World Championship 2015. The event proved to the world that Qatar has the ability to successfully deliver the 2022 World Cup as promised by the Supreme Committee for Delivery and Legacy when they

USD

chose the slogan “Expect Amazing” for the event. With many mega projects ongoing in line with the country’s National Vision 2030 and of course the World Cup, Qatar is the place to be for construction professionals in the Gulf Cooperation Council and the

Qatar is the place to be for construction professionals in the Gulf Cooperation Council and the wider Middle East.

QAR

wider Middle East. Having the highest gross domestic product (GDP) per capita in the world, driven primarily by oil and gas revenue, the country’s construction sector is slowly expanding to claim a growing share of Qatar’s GDP. Below are some figures that explain the phenomenon shaping Qatar’s rapidly growing construction sector today. These figures show nothing but the continuous success of Qatar’s construction industry at present. Well done in 2014 and the country looks ahead to “deliver amazing” for the World Cup and beyond.

USD

276

455 billion

billion

The approximate value of projects planned or underway in Qatar.

Amount allocated for the development projects between 2011 and 2016 by the government of Qatar.

Budget for the Lusail City – Qatar’s most expensive development project.

billion

USD

billion The expected worth of contracts to be awarded in 2015.

18 | QCN YEARBOOK | 2015

Amount allocated for the development projects between 2011 and 2016 by the government of Qatar.

USD

billion Budget allocated for Qatar Integrated Rail Project.

Ahmed Fouad is senior delay analyst at Nexus Global.

+50% Qatar plans to spend more than half of its USD60 billion budget for 2014-15 on new projects.

16.8% Increase in spending on major projects, as allocated in 2014-15 budget.

Source: MEED, Reuters, EC Harris

analysis

Financing Qatar’s mega projects A quick scan down the list of strategic projects currently getting underway in Qatar reveals not only the enormous scale of construction, but also the size of the State’s project financing commitments, writes Oliver Cornock.

From the QAR136.5 billion Qatar Rail roll-out to the comparatively modest QAR20 billion and QAR30 billion sums attached to Education City, Msheireb Downtown, Barwa City and the 2022 World Cup stadiums, the project list accounts for a major section of the globe’s current construction pipeline. This local construction drive is coming at a time when the world as a whole looks a lot less financially confident. Of particular relevance for the region – and impacting Qatar too – has been the collapse in oil prices, which tumbled from a high of USD114.77 (QAR417.7) a barrel in June 2014 to a low of USD46.18 (QAR168) around the year end. Prices have since risen again, to around USD58 (QAR211) a barrel, yet this has had a major impact on what is still an important income earner for Qatar. This price decline is now also beginning to impact Qatar’s main hydrocarbon earner, liquefied natural gas (LNG). Lower hydrocarbons prices also adversely affected sentiment on Qatar Exchange, which was already negatively impacted by regional tensions. At the same time, the Qatar Central Bank (QCB) has been obliged to defend the Qatari Riyal over the last year, as the US dollar – to which it is pegged – has appreciated. Between November 2014 and January 2015, this led to a QAR19.6 billion drop in net international reserves. All of these factors added together would ordinarily cause considerable alarm in the project financing world. The Qatari State’s revenues have fallen along with the QCB’s reserves, while the stock market has also taken a plunge. Meanwhile, a tightening global market tends to make international financiers a lot more risk averse. With such a large infrastructure project roll-out going on, cutbacks and revisions would therefore

20 | QCN YEARBOOK | 2015

Qatar’s local construction drive is coming at a time when the world as a whole looks a lot less financially confident.

ordinarily be expected. Yet, this has not been the case in Qatar. Why? Well, the central reason is the huge financial reserves that the country continues to have access to. For the last several years, Qatar has recorded significant budget surpluses, building up a diversified savings and investments portfolio both at home and around the world. There is also considerable momentum in the economy as a result of major project investments in previous years and organic population growth. The latter expanded 9.5 percent in the year March 2014-March 2015, while real gross domestic product (GDP) growth hit 6.7 percent in the fourth quarter of 2014, according to Qatar National Bank (QNB) figures. That quarter, non-hydrocarbon sector growth reached 10.3 percent – with construction and services the main growth engines. This level of expansion is reflected in the fact that Qatar’s banks have seen very little change in their deposit bases – or any shift away from the riyal to foreign exchange. A graph of total deposits over the last year shows almost no fluctuation, despite oil prices tumbling, the dollar strengthening,

and regional turbulence increasing. This also shows the level of confidence there is in the Qatari banking system. At the same time, with LNG being Qatar’s main hydrocarbons sector earner, the State has been partly protected from falling oil prices. LNG is generally sold according to long-term contracts and offtake deals designed to smooth out short-term price fluctuations. These arrangements are progressively coming to an end, but until now, they have helped cushion the oil price blow. So, while 2014 saw hydrocarbon revenues fall – their contribution to the State budget going from USD65 billion (QAR236.6 billion) in 2013 to USD62 billion (QAR225.7 billion) in 2014 and an International Monetary Fund’s forecast of USD60 billion (QAR218.4 billion) in 2015-16 – the country will still make around USD372 billion (QAR1.35 trillion) in revenue from hydrocarbons over the next five years. Thus, while recent events have undoubtedly impacted Qatar’s financial strength, the country is well cushioned to avoid any major damage. What budgetary adjustments there have been may also have long-term benefits for project finance. All of these factors make Qatar quite an exceptional market, with the government set to continue its well-financed project roll-out unabated in the years ahead.

Oliver Cornock is regional editor, Middle East, for Oxford Business Group.

analysis

Human Resources:

Labour reforms for Qatar’s future construction Delivering better quality and quantity of output means moving up the value chain, for both employers and employees alike, write David Jones and Radhika Punshi of The Talent Enterprise. In the past year, we have seen a tremendous increase in the scale and scope of immigration into Qatar, much of it driven by construction and infrastructure expansion and the legions of expatriate ‘labourers’ who deliver the soaring towers, inspirational stadiums and network of tracks, building the infrastructure of the country before our very eyes. Estimates of more than a million new immigrants entering the country in the past year, or 142 percent increase in immigration overall, provide a snapshot of how the insatiable demand for labour from Qatar’s construction industry is driving far-reaching economic, cultural and social changes. What is the impact of this unprecedented growth in employment within the industry and what can we expect ahead? As long as busloads of workers are transported from labour camps to work long hours in the region’s construction industry, improving labour relations remains a top priority. Working and living conditions remain challenging to say the least, with accommodation often provided in basic and often dreadful, isolated conditions which would not even comply with basic standards in the developed world. Pay remains low by international standards and can often be unreliably dispersed. Health and safety records are poor and workplace rights are largely in favour of the employer. Driven both by a sustained increased international scrutiny and competition in the industry, we see a continuation of the prime focus on improving productivity, quality, health, safety and wellbeing among employers. In part, this is an evolution of industry practices towards something which we can all be proud of, although the scale of expansion of construction projects across the Gulf Cooperation Council

22 | QCN YEARBOOK | 2015

We see a continuation of the prime focus on improving productivity, quality, health, safety and wellbeing among employers in Qatar’s construction industry.

means that this is not just the right thing for Qatari employers, it is also the smart thing. With traditional labour pools seeing a reduction in supply and an increase in regulation, Qatar has to position itself as the preferred destination for workers faced with more choice about where to invest their human capital. This means that we will see significant proportional increases in pay and benefits required to attract, retain and motivate workers across the board into the industry, reflecting both more challenging supply conditions in global labour markets, along with local cost of living inflation. Moreover, smarter employers will increasingly realise that when they employ someone, whether directly or indirectly, they are not only renting their brawn, but also their brains. Overcoming the highly segmented internal labour markets within many employers will provide opportunities for greater commitment and retention for those with ambition, wherever they happen to be in the current payscale. Moreover, providing more opportunities to learn, as well as just to earn, while working in the region will also help to increase labour productivity here, which is among the lowest in the world, despite average earnings for manual workers starting at only

QAR43.70 per day. Delivering better quality and quantity of output, means moving up the value chain, for both employers and employees alike. From employers, this means that pay and conditions must improve. From employees, this means that skill development and skills verification to international standards and certification levels is an increasing priority. We see the current trend around the GCC for trade skills to be verified against local or international standards, both before and during workers’ sojourn in the region, as an important move to support the greater quality and regulation of our delivered projects. In sum, we see an acceleration of the moves towards a greater maturation of the industry’s people practices as we move forward. With millions of people from around the world having chosen to assist Qatar in delivering on its ambition, their experience and resulting word of mouth will determine the reputation of their employer and host country far more powerfully and pervasively than any marketing and PR budget could, no matter how large. It is up to all of us to ensure our labour practices are truly worldclass and we create legions of ambassadors and not agitators as the human legacy of our professional contribution to the development of Qatar and the broader region.

David Jones is the managing director and Radhika Punshi is the director of innovation at The Talent Enterprise.

analysis

Construction Law and Legal Practice in Qatar Legal expert Pamela McDonald writes about some key legal practices in Qatar’s construction sector – both before and after signing a contract. The importance of the law and a welldrafted contract to the successful execution of construction projects cannot be overemphasised. Key issues, including the scope of work, the procedures to be followed, the employer’s requirements, price and payment terms and the governing law underpinning the works are legally binding once a contract is entered into. Risks can arise for both the employer and the contractor if the terms of the contract are not understood and complied with. As construction lawyers at Pinsent Masons, we recognise the need to anticipate and manage these risks before the contract is entered into, and during the life of the project, as well as dealing with problems after they become apparent. Construction law in Qatar deals with a wide range of issues, including contract formation and terms, bonds and financing, insurance, employment, planning, negligence, claims for payment and delay, and the resolution of disputes. These contracts are commonly based on a standard form of contract, such as the one governed by the International Federation of Consulting Engineers (FIDIC). However, in Qatar, the allocation of risk in the standard contract forms are usually heavily amended following negotiation between the parties at tender stage. When drafting and interpreting contract terms, consideration must be given to Qatar’s Civil Code and, in particular, the approach under the Civil Code to concepts such as liquidated damages (which can be adjusted), the payment of interest, and limitations on the bringing of claims, including decennial liability. Given the high number of joint ventures formed in Qatar for the purpose of entering into construction projects where one partner is an international company, legal advice should be sought on these and other principles that apply. During the life of a project, often what is needed is not an extensive report on the

24 | QCN YEARBOOK | 2015

Key trends

We are often asked to advise clients on the correct interpretation of the specific notice clauses in their contracts and the enforceability of notice provisions under Qatar’s Civil Code.

interpretation of the law or a contract clause, but decisive guidance on the steps our clients should take to achieve a successful project, while also protecting against the risk of claims. We achieve this through active involvement in the project at every stage, enabling us to provide strategic advice to improve cash flow, reduce disputes, improve relations between the parties and reduce the risk of project failure or liability for time and cost overruns. Some key strategies on legal guidance include: • Early identification and analysis of the legal risks and opportunities, and developing a strategy to manage them. • Training the project/commercial team on risks and opportunities, and their role in managing and achieving them. • Proactive, regular advice based on the knowledge of the contracts, and the client’s commercial objectives. • Developing change management, reporting and record-keeping procedures, which comply with the legal requirements of the contracts. • Implementing a strategy to avoid and reduce formal claims and disputes, thereby avoiding damage to relationships and unnecessary costs.

A big concern for contractors and employers carrying out public interest projects in Qatar is time. Given the immovable 2022 World Cup deadline, there is significant pressure to achieve key milestones and completion dates. Liquidated damage provisions in construction contracts are increasingly imposing a significant rate of damages for every day or week that the contractor is late in completing the project or a stage of the works. Contractors are required to submit notices if they believe they are entitled to an extension of time. A common trend in the industry is disagreement between contractors and employers/engineers as to whether a claim is ‘time-barred’. It is alleged that the contractor is prohibited from claiming time or money because the required notification procedure under the contract has not been complied with. We are often asked to advise clients on the correct interpretation of the specific notice clauses in their contracts and the enforceability of notice provisions under Qatar’s Civil Code. Law and the contract terms are a consideration at every stage of a construction project. Navigated correctly, and with assistance from construction law specialists, parties to construction contracts should have clarity as to their role, the risks and their reward.

Pamela McDonald is a solicitor at Pinsent Masons’ Doha office.

analysis

Real estate:

What does 2015 hold in store for Qatar’s property market? A recent report by EC Harris named Qatar as the most expensive market in the Gulf Cooperation Council. Aziz Sharif gives a snapshot of the country’s real estate sector. Qatar’s real estate market was bullish in 2014. The volume of transactions and the increased land values led to inflationary pressures on the overall Qatari market. To give an indication of the level of activity in the market for land during the final week of 2014 alone, The Peninsula reported that there were 94 land deals worth QAR1.4 billion, with Al Wakrah being the top destination. The relevance of looking at land transactions is that it is one of the main drivers of commercial and residential inflation. We often overlook this as increasing population has been more conspicuous, but it does have a substantial influence. The cost of land drives the high construction costs, which in turn lead to higher rental prices. EC Harris, in their 2014 Cost of Construction Report named Qatar as the most expensive market in the GCC and land played the largest role in achieving this. If we observe the various sectors in the real estate market, we can get a general view of how 2014 played out due to the influence of land prices. Residential markets experienced demand hikes that they are still experiencing difficulties dealing with, but this is a good problem from the perspective of the suppliers. Qatar’s rather extreme population growth in 2014 led to some curious situations. For instance, the affordable housing development Barwa City raised its

26 | QCN YEARBOOK | 2015

The affordable housing development Barwa City raised their prices by up to 46 percent earlier this year due to increased demand.

prices by up to 46 percent earlier this year due to increased demand, according to The Peninsula. This essentially priced the development into a level akin to properties in prime locations. The force that has led to situations such as these is the supply shortage in residential units. A Colliers report recently stated that there is a 50,000 unit shortage that is not being adequately addressed. The supply is increasing at a compound annual growth rate of three percent. Therefore, there might be pricing fluctuations in the various real estate segments but the prices will generally continue rise. Furthermore, the price rises will most likely be resistant to recent reports of headcount reductions at various major entities in Qatar. Commercial real estate was also under a State demand pressure during 2014. As no new

malls opened in 2014, the demand for prime retail space has been high. The difference between commercial and residential units is indicated by the volume of demand which will be relieved by the mega malls coming on stream. The underpinning story for 2014 was the story of land. It has been marked by high prices and even higher levels of interest. A report by Qatar Central Bank had the Real Estate Price Index growth of 18.5 percent from January to June of 2014. That is a breathtaking pace. What does 2015 hold in store? Will the slowing capital expenditure or lower gas prices have an effect on land values or the number of units under construction? Given the level of mismatch between demand and supply, I think 2015’s story will be much the same.

Aziz Sharif is the Internet Ventures Portfolio manager at Ooredoo. Previously, he was the cofounder of Qatar’s real estate portal Mannzili.com.

analysis

MEP: High growth offering both risks and rewards for specialist subcontractors For Qatar’s ongoing construction projects, civil engineering goes hand in hand with mechanical, electrical and plumbing (MEP) works. Vasanth Kumar takes a look at the country’s growing MEP sector.

As Qatar’s construction industry continues to grow, the demand for high-quality MEP products and building services specialist installation subcontractors is at an all-time high. Building services typically account for 30 to 35 percent of the total building construction cost and is considered the single most highlyvalued component subcontracted by the main civil contractor. To add to its importance is the critical location in project sequencing wherein MEP design and installation activity often sits directly on the project critical path, rendering MEP as the lifeline of any project. Since MEP systems such as heating, ventilation and air-conditioning (HVAC) and associated building services are expected to be operational 24x7 in hot weather conditions, high quality, reliability and reputation are the key factors in selection of products, systems and, installation and maintenance contractors. Despite its utmost importance, Qatar’s MEP industry is in a crucial phase now and exposed to many risks due to the low price and demanding schedule offered by the main contractors. The situation is a result of an overcrowded and saturated civil construction sector. It appears that most of the projects awarded are based on cheap bids and highly competitive prices with limited budget for MEP subcontractor works. Bad business practices such as bid shopping are dangerously pushing MEP prices to unsustainable levels so much so that many MEP subcontractors who have signed up contracts are on the verge of bankruptcy. Facing delays and difficulty to secure reputed MEP subcontractors within the

28 | QCN YEARBOOK | 2015

Authorities in Qatar have introduced new regulations which call for registration and certification of MEP subcontractors.

budgeted cost, many main contractors take a risky option of self-performing MEP works by starting their own MEP division. For now, it is too early to predict the results as the cost element stays, irrespective of who does it. Recent fire incidents and accidents at many construction sites have raised many questions regarding the reliability of installed MEP operations. This could be due to faulty installations resulting from inexperienced personnel or compromise on quality and safety, etcetera. Whatever the case, there is hope as authorities have introduced new regulations which call for registration and certification of MEP subcontractors as well as engineers, products and design calculation approvals. Another factor seriously impacting project completion and performance of MEP subcontractors is the onerous contract terms enforced on unwary subcontractors. Construction contracts should be well drafted and balanced in terms of risk allocation. However, in today’s fiercely-competitive construction landscape, subcontractors often sign contracts with one-sided clauses. Going ahead with such contracts without reviewing

and understanding all clauses can put subcontractors under serious liabilities that can even lead to bankruptcy. The majority of main contractors often pass on the client’s bespoke forms of contract on back-to-back basis, which often contains unfavourable terms with one-way conduit clauses, forfeiting and depriving a contractor of his basic right. Therefore, we need a shift whereby the main contractors and clients are willing to use internationally-accepted forms of contract governed by authorities such as the International Federation of Consulting Engineers, the Joint Contracts Tribunal, and the New Engineering Contract, etcetera, as they contain general conditions of contract together with locally-modified particular conditions. MEP subcontractors should carefully study both expressed and implied terms in the draft contract. They must weigh risk versus reward before entering into a commitment. That said, MEP market sentiment in Qatar suggests that by 2017, construction industry dynamics will change in favour of this sector by increasing the number of offerings, keeping the subcontractors extremely busy until at least 2018.

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

project qatar

“We strive for Project Qatar to contribute to the realisation of the government’s development goals by bringing industry professionals, policy makers and thought leaders together under one roof,” says George Ayache, general manager of IFP Qatar.

EXPOSURE TO BOTH KNOWLEDGE AND TECHNOLOGY CAN ALLOW ATTENDEES TO ENHANCE THEIR COMPETITIVE ADVANTAGE

Project Qatar has evolved into one of the best-attended construction events in the region over the past decade, but for George Ayache, general manager of IFP Qatar and organiser of this exhibition, the true significance does not lie in the impressive statistics relating to attendees and participants but in the industry insight, networking and business opportunities that it offers. How has Project Qatar evolved over the past decade, and what are your expectations for this year? Since its inception in 2004, Project Qatar has evolved quite remarkably, with over 300 companies from 22 countries attending the first edition to the exhibitor numbers touching close to 550 from 36 countries in 2008. Last year, in fact, this number crossed an unprecedented mark of 2100 exhibitors as the event received strong representation from 47 countries. Keeping pace with this increase in exhibitor figures, the event saw the number of visitors also multiplying every year, from just 10,000 in 2005 and 18,000 in 2008 to close to 50,000 in 2014. This year, I think, the interest levels as well as the participation numbers for the event will be no less significant. And that’s very much evident from the fact that 80 percent of our exhibition space had already been fully booked months ahead of the event. The enthusiasm level is also very high due to the presence of inaugural international pavilions. Yet, for me, the true significance of Project Qatar does not only lie in such statistics. On the contrary, the exhibition derives its value from the insights it provides, the networks and business opportunities that it offers. As mega construction projects such as the Lusail City and Qatar Rail’s metro are in full swing in the backdrop

30 | QCN YEARBOOK | 2015

of two major sporting events – the 2022 World Cup and the International Association of Athletics Federations’ 2019 World Championships – that are fast approaching, Project Qatar promises to be ever more beneficial to all the stakeholders involved in the country’s economy and its dynamic construction sector. How is Project Qatar different from other construction events in the region? Project Qatar has established itself as a premier, internationally appealing platform for construction sector professionals to explore the latest industry insights, discover business opportunities and further extend their network. A number of exhibitions worldwide are relevant for construction professionals, but what makes Project Qatar exceptional is that it provides great opportunity for key industry professionals to come together in a country that has a lot to offer at the moment. Besides being the world’s third largest exporter of liquefied natural gas (LNG), Qatar is going to host a wide range of major events over the coming years – all of which are expected to provide great momentum for infrastructure investments. Embedded in one of the world’s most flourishing construction markets and economies – with projects worth QAR1.27 trillion under construction or in planning stage –

industry insights

Project Qatar hosts two concurrent exhibitions – Qatar StoneTech and Heavy Max – which showcase the latest construction equipment, technology and building materials.

Project Qatar provides an ideal setting for individuals and organisations to extend and diversify their portfolios. As this event enters its 12th year, what do you believe has been the key to its success? The continued success of Project Qatar is largely explained by three factors. First, it is a reflection of the generous and persistent support of the Qatari government at large and the Qatar Chamber, specifically, along with the contributions of various sponsors and international supporting bodies. Indeed, we owe special thanks to the government, our sponsors and our many local, regional and international supporters for enabling us to continue hosting and steadily expanding this soughtafter exhibition. Our experience over the past 10 years suggests that it is the belief in possibility, among all Project Qatar stakeholders, that inspires and enables us to successfully connect professionals from all corners of the globe, year after year. Second, industry professionals who attend the exhibition find themselves in one of the world’s most vibrant economies and construction sectors. At Project Qatar, participants not only gain insight into major market trends, but also get a chance to identify and seize business opportunities. Considering the scope of investment that Qatar’s infrastructure sector is expected to offer over the coming years, participation in Project Qatar could be seen as a starting point for developing long-term business relations. Third, Project Qatar is committed to providing participants with access to decision makers and thought leaders alike, while continuously showcasing state-of-theart technology. Having such exposure to both knowledge and technology often allows attendees to enhance their competitive advantage, which, eventually, could help them foster their operations worldwide.

What are the main attractions this year for regional and international players to participate in the event? This year, participants will be able to visit a number of inaugural international pavilions, while examining stateof-the-art technology, which we have found to evolve with each annual exhibition. Additionally, attendees are invited to partake in two of the most exciting concurrent exhibitions – Qatar StoneTech and Heavy Max – which showcase the latest construction equipment, technology and building materials. Moreover, Project Qatar 2015 is proud to introduce its new and improved B2B matchmaking platform. Visitors will now be able to register on the platform through Project Qatar’s website and meet exhibitors that match with their products and work profile. This easy and interactive software allows visitors to plan and prepare their visit, and to maximise their time at the show. How would you assess the growth of Qatar’s construction market that we have seen in recent times? Qatar has established itself as one of the most dynamic construction markets in the world. Guided by the Qatar National Vision 2030 – which fosters the kind of development that is conducive to human, social, economic and environmental development – Qatar is expected to achieve 7.7 percent growth in real gross domestic product (GDP) in 2015. While this is partially rooted in the country’s position as the third largest exporter of LNG, the International Monetary Fund (IMF) has found that 50 percent of Qatar’s GDP is derived from the nonhydrocarbon sectors. Accounting for 13 percent of GDP growth in 2014, the construction sector is integral to Qatar’s non-hydrocarbon economy. As the country prepares to host some of the major sporting events, Qatar continues to invest heavily in critical infrastructure. It has allocated a budget of QAR225.7 billion for 2014-15 alone, and

“Keeping pace with this increase in exhibitor figures, the event saw the number of visitors also multiplying every year – from just 10,000 in 2005 and 18,000 in 2008 to close to 50,000 in 2014.” – George Ayache, general manager of IFP Qatar.

2015 | QCN YEARBOOK | 31

project qatar

Last year, more than 2000 exhibitors participated in the event from close to 50 countries.

“This year, participants will be able to visit a number of inaugural international pavilions, while examining state-ofthe-art technology, which we have found to evolve with each annual exhibition.”

32 | QCN YEARBOOK | 2015

works towards a QAR20 billion deep-water seaport, roadways and highways worth QAR72.8 billion as well as eco-friendly stadiums estimated to cost QAR116.5 billion. The remarkable growth of Qatar’s construction sector is, therefore, a reflection of efforts undertaken in realising the development goals of Qatar. How do you think the global construction equipment and building materials companies can capitalise on Qatar’s burgeoning construction industry? Especially at Qatar StoneTech (the international stone and stone technology show) and Heavy Max (the international exhibition for Heavy Machinery), we witness the importance of companies engaged in the construction equipment and building materials industries. These conferences, which are held concurrently to Project Qatar, reflect the growing demand for building materials worldwide – given infrastructure investments of QAR728 billion over the next decade in Qatar alone – and the need for heavy equipment and machinery, demand for which is expected to increase by QAR134.7 million in 2015. Thanks to the scope of Qatar’s present and future infrastructure investments, construction equipment and building materials companies will confront a wide range of business opportunities, and – given the need for efficient operations, tailored to Qatar’s distinct environmental conditions – will likely be able to experiment with new technologies. Education City, along with other sites in Qatar, is perhaps one of the most prominent and representative examples of the creative possibilities open to those engaged in Qatar’s construction sector.

How can Qatar sustain this recent construction growth beyond 2022? What do you think the strategy should be? The growth of Qatar’s construction sector is interlinked with progress made in achieving the country’s development goals. Thus, the issue is not whether construction growth can be sustained, but when the developmental objectives outlined in the Qatar National Vision 2030 will be achieved. Of course, given the timeframe of the Qatar National Vision, it is very likely that major infrastructure projects – conducive to human, social, economic and environmental development – will continue to unfold up to 2030 and far beyond. The strategy for fostering such development, while driving growth across sectors – with construction being one of many – is no longer a matter of debate, having already been outlined in the Qatar National Vision 2030. It is the holistic and visionary character of Qatar’s leadership that has enabled the kind of growth and development Qatar has witnessed to date and that promises to lay the foundation of progress for many years to come. How should Qatar approach its planning and construction scheduling aspects in order to finish major projects on time? We strive for Project Qatar to contribute to the realisation of the government’s developmental goals by bringing industry professionals, policy makers and thought leaders together under one roof. The interchanges, which such encounters allow and the latest technology the exhibition showcases, are likely to enhance the government’s persistent efforts in realising the ambitions outlined in the Qatar National Vision 2030. As indicated by the progress made in realising Lusail City and Qatar Rail’s metro project – among other efforts – Qatar’s construction sector evidently is both competitive and sophisticated. Our mission is to enhance the sector and its projects even further.

Indirect / Direct Hybrid Air-conditioning Units The most efficient Air Conditioning & Heat Recovery Units in the world The best Outdoor Cooling System in the world

aPPlICaTIoNS PRoDUCTS Fresh air Package Units

Commercial and Public Buildings Schools, Colleges and Universities Shopping Malls

Energy Recovery Units Data Center Residential outdoor Cooling Units Industrial Buildings

Economical up to 80% saving on energy consumption. Environmentally friendly as no harmful gases are used in the process Effective delivery with temperatures as low as 14ยบC / 57ยบF 100% Healthy, oxygen rich fresh air. No recycling stale air.

Doha Cool & Fog W.l.l Email: alen.abraham@dohacoolfog.com / info@dohacoolfog.com / sales@dohacoolfog.com T: +974 44113040 F: +974 44113080 M: +974 55112515 / 55113040

An illustration of the redesigned Khalifa International Stadium â&#x20AC;&#x201C; one of Qatarâ&#x20AC;&#x2122;s key projects linked to the 2022 World Cup. With renovation works scheduled to be complete in 2016, the new Khalifa International Stadium will accommodate a seating capacity of 40,000. (Image Supreme Committee for Delivery & Legacy)

Qatar Projects 36 40 44

FIFA Risk Factors

Qatarâ&#x20AC;&#x2122;s National Museum

Doha Metro

qatar projects

36 | QCN YEARBOOK | 2015

feature story

Fifa World Cup: Risk factors Can Qatar stand the test ahead of 2022? With ambitious plans to begin with, Qatar initially announced 12 stadiums to be constructed for the 2022 World Cup, later proposing eight stadiums to FIFA. Ahmed Fouad gives an overview of Qatar’s progress on the eight stadiums that the country has promised to deliver, and warns about the risks involved in the process.

While the world was watching Brazil’s 2014 World Cup, for Qatar the event was more than a sports tournament. For Qatar, as a future host nation of the FIFA World Cup, it was a perfect platform to learn how to be better prepared when it is time to deliver in 2022. And every lesson counts, whether it is from construction or the operation of Brazil’s stadiums. After the latest tournament was over, the country sent its construction and building professionals to Brazil to share the latter’s experiences. The rationale behind these knowledge-sharing meetings was simple: with the World Cup only seven years away, now is time to capture all the lessons from the 2014 World Cup and forecast the 2022 risks based on them. Qatar originally announced plans for 12 stadiums, including nine new stadiums and three refurbishments. According to the FIFA bid evaluation report for Qatar’s submission, the renovation was scheduled to start from 2012, while the construction of new stadiums was planned for between 2011 and 2021. The forecasted construction and renovation costs of these 12 stadiums, as per the bid file, were stated at around USD4 billion (QAR14.5 billion). Later, however, the country proposed a cut-down number of eight stadiums to FIFA, which, according to some media reports, was motivated by cost-cutting following an assessment of the real needs on the ground. Eight is also the minimum number of venues required by FIFA. While the number of stadiums depends on FIFA’s approval, the forecasted

cost remains at USD4 billion (QAR14.5 billion). Works have begun at Al Wakrah Stadium, with designs of three new stadiums unveiled last year. Regardless of delays in starting dates, once awarded, these projects are expected to have a fixed completion date with no contingency time to deal with delays. This would mean the projects would soon become increasingly aggressive in terms of construction schedules and resource availability. Qatar plans to complete World Cup-related projects by 2020. Meanwhile, Qatar has also been awarded the hosting rights to the 2019 World Championships in Athletics, a tournament managed by the International Association of Athletics Federation, and typically held in August-September. Winning the bid for a tournament in 2019 means Qatar is left with an even tighter construction period for some of the stadiums.

USD

billion The budget allocated for 2022 World Cup stadiums.

Postponement risks

According to Project Management Institute’s (PMI) report published in PM Network in April 2014, 64 percent of Middle East capital projects ran over budget in 2012, while 80 percent were delayed in 2012 and nearly half of the projects were more than six months behind the scheduled time of completion. To develop a contingency plan, delay risks need to be identified. Supply chain risks are among the most critical that have the highest probability rate. One of the

2015 | QCN YEARBOOK | 37

qatar projects major reasons for delay arises from the preferred vendor list (PVL). A PVL is a list of approved vendors that contractors are allowed to purchase from. A vendor’s factory in the United States may be on the list while the same vendor’s factory in Asia may not be on the list, in which case materials from the Asia factory will be rejected. With the expected simultaneous demand due to Qatar National Vision 2030, the Qatar’s 2022 World Cup and Dubai Expo 2020, experts in the industry forecast that the lead time will increase by about 20 percent, leading to a surge in prices of imported building materials. Like any construction or infrastructure project, stadiums are also prone to changes during various phases of development. Hence, the forecasted changes requested by clients to keep the stadiums up to date and maximise the utility of their facilities are also likely to cause delays since materials need to be ordered accordingly. Usually, the purchasing departments of subcontractors go ahead with non-complying materials since the required materials are sometimes hard to procure and require custom manufacturing.

The Aspire Zone Foundation, a stakeholder of the Supreme Committee for Delivery & Legacy, will deliver Al Bayt Stadium.

Other risks

The following are some high-probability risks leading to significant impacts on workflow at different stages of the construction phase:

Finishing Façade-roof or shell construction is always on the critical path of the works (as it seals the building; gives its final external shape, and allows for a dust-free environment inside the building for finishing works to be completed). Hence, the specialised shell construction (SC) works should be closely monitored.

Permits Timely issuance of work permits for excavation and construction.

Technology Expected challenges during commissioning of stadiums including new technologies being used and their interface with other disciplines and systems.

2022 World Cup projects will soon become increasingly aggressive in terms of construction schedules and resource availability.

38 | QCN YEARBOOK | 2015

Approvals Civil Defence approval at design stage and handover.

Inflation From an economic standpoint, a major risk facing Qatar is that of inflation. The country has a history of significant inflation swings. During the previous construction boom (2006 Asian Games), the country’s inflation reached a record 15.2 percent, partly due to very short construction duration.

Utilities Tie-in deals between government bodies and contractors to connect project facilities to the country’s grid for power and utility supply.

MEP works MEP works are at the heart of modern construction, and will be responsible for up to 30 percent of overall projects’ values. Specialised shell construction (SC) performance, is thus one of the major risks. In addition to the scarcity of resources, MEP’s SC staff and controls departments for SC are not always strong. Due to the lack of sufficiently qualified SC staff, main contractors often manage leading SC functions, leading to increased staff for the main contractor which results in cost overruns.

Climate Several service disruptions during the day, due to intense climatic conditions in Qatar. The labour time lost at work has a negative impact on the project.

Workforce The increasing influx of expatriates requires expansion in accommodation, schooling and other such facilities. If not managed efficiently, the lack of such facilities can be a major hurdle in attracting the foreign workforce.

feature story

Forecasted changes requested by clients to keep the stadiums up to date and maximise the utility of their facilities are also likely to cause delays.

Current seaport capacity is not enough to handle the required import requirements for Qatar National Vision 2030 and the 2022 World Cup, that may cause delays until the new Hamad Port is operational to meet the growing need for imported materials. Some contingency plans and solutions that can be adopted to avoid delays include: • Freezing design before construction starts. A fixed design means clarity on the required building materials and their quantities, hence leading to timely deliveries. • Early identification and purchasing of items with long lead times. • Consolidating all forecasted project requirements by a government organisation to secure main construction materials such as cement and reinforcement steel. Consolidating schedules for contractors to order materials as early as possible and to plan for longer delivery times for items such as pipes and flooring materials. This, however, must be supported by a quick approval of design and material submissions by clients. • Revisiting the preferred vendors list to include more vendors and vendor factories in different countries.

Engineering risks

According to PMI’s PM Network’s Metrics: The Latest Statistics, Surveys and Studies, published in 2014, 1.2 million construction workers are required from 2014 to 2019, plus 135,000 highly skilled staffers. The report further states that for every USD1 billion (QAR3.64 billion) spent, 20,000 to 44,000 workers

More than 15,000 people attended the cooled, open-air Brazil 2014 Fan Zone, hosted by the Supreme Committee for Delivery & Legacy (SC) at Katara, to watch games across 10 nights from round of 16 through to the final of the 2014 FIFA World Cup Brazil. (Image SC)

are required in the region. Hence, 69 percent of the Middle East’s CEOs see limited access to skilled talent as a potential threat to growth, while the forecasted construction inflation rate from 2016 to 2019 is 16 to 20 percent. The statistics clearly indicate the complexities involved in the preparation for the 2022 World Cup. Other than delay-related risks, some challenges are related to scope of work, engineering, construction environment, resources and subcontractors. A major issue within the Amazon Arena in Brazil was rooted in the contract signed between FIFA and each host city. One of the terms of this contract stated that the host cities were required to comply with all technical requirements, reserving to the Organising Committee and FIFA the right to modify, delete or add new requirements at any time until the date of the competition. In effect, this meant that the organising committee and FIFA could, at any time, require changes in the original project, even if they generated additional costs to those responsible for the construction. Typically, major lump-sum contracts with government bodies have clauses that make the time and cost implications arising from such changes the responsibility of the main contractor. Additionally, the ‘No Claim Concept’ (that is, the contractor has no right to ask for extension of time) now applied in some projects increases the risks for the main contractors. Among many risks related to engineering, a significant one emerges from the complex nature of engineering workflow. The engineering process flows from concept design

to schematic design, leading to detailed design. Later, the process moves to Issued for Construction (IFC), Approved for Construction (AFC) and shop drawings. Due to the fast-track nature of the 2022 World Cup projects and their interface with other infrastructure projects in Qatar, various stages of construction have the potential to overlap in a risky manner. Lack of well-coordinated AFC drawings between disciplines, especially architecture and mechanical, electrical and plumbing (MEP) can also raise problems. Another challenge is related to the specialised designers required for MEP services and extra-low voltage systems for the state-ofthe-art cooling, telecommunication and security systems. With great demand within Qatar and in the Gulf Cooperation Council for their services, extra costs are expected. Sustainability and heating, ventilation and air-conditioning features of stadiums can also present new challenges during the engineering and design phase and their interface with other disciplines. A strong contingency plan, thus, would require a system whereby lessons learned from each project must be communicated to the ongoing and new projects to avoid similar pitfalls. Great opportunities come with great risks. While the 2022 World Cup has opened a window for Qatar to strongly position itself as a sports hub, the tournament has also brought the country into the global limelight. Given a fixed time of delivery, World Cup projects are unusually aggressive and risky in nature. However, these risks can be overcome and all challenges can be successfully resolved if all stakeholders involved work as one team with open minds.

Ahmed Fouad is senior delay analyst at Nexus Global.

2015 | QCN YEARBOOK | 39

qatar projects

The pros and cons of building Qatar’s national museum Will the National Museum of Qatar depict its designer’s vision of a desert rose?

40 | QCN YEARBOOK | 2015

The National Museum of Qatar, designed to resemble a rosette formation of crystals, is expected to be an iconic addition to Doha’s current landscape. (Image Ateliers Jean Nouvel)

feature story

The design of the National Museum of Qatar, currently under construction in Doha, is inspired by a desert rose – a naturally occurring rosette formation of crystals found only in arid, sandy conditions. Once complete, Jean Nouvel, designer of the project, believes it “will become Qatar’s voice of culture, delivering a message about the metamorphosis of modernity and the beauty that happens when the desert meets the sea”. Architectural illustrations, however, rarely accurately reflect depictions. Qatar will hope the structure of the National Museum of Qatar will be a radiant jewel in the desert peninsula’s crown, but will it live up to these expectations? Lee Winter, a Qatar-based construction professional, explores the pros and cons. With so much attention on the stadiums currently under construction for the often maligned 2022 World Cup, it is a considerable injustice that another of Qatar’s iconic buildings-in-waiting is not being merited with the top billing that it truly deserves. When compared to the largely generic stadiums (allowing for as much originality as one could expect from the limited world of football arenas and with a few dashes of moderate variations aside), Doha’s unparalleled new museum, the National Museum of Qatar, is almost otherworldly. Due for completion in 2016, it is gradually, yet resolutely, blossoming from the landscape situated on the south end of Doha’s Corniche. Once complete, the low-lying structure will provide a beguiling, if somewhat unexpected, revival to bleary-eyed travellers arriving in the country’s capital as they amble their way from Hamad International Airport and are met by the sprawling and captivating monument. Inspired by the desert rose, a naturally occurring rosette formation of crystals found only in arid, sandy conditions, the superstructure is deliberately hunkered-down into its surroundings, appearing to grow from the ground and be at one with it; much like the phenomenon that it mimics. According to the architect, Pritzker Prize winner Jean Nouvel, it is a representation of a passage of time, referencing Qatar’s steeped ancient history. A metaphor in more ways than one, with the grandiose and enterprising design mirroring the audacity and progression that Qatar is currently showcasing on several fronts, and a concept that echoes a process of crystallisation, the design seems to perfectly emulate the coming-together of history and tradition with modernity, artistry and ultimately, beauty. It is, to put it mildly, an elaborate and flamboyant concept. The exterior, exhibiting a sand-coloured finish and comprising several interlocking glass-reinforced concrete (GRC) panels, suggests the blade-like petals of the desert rose. Similarly, the interior comprises interpenetrating discs – some positioned almost vertically, others lying more or less horizontally – of varying curvature and diameter, and define the pavilions’ floors, walls and roofs. These interlocking pavilions, which encircle a large courtyard area, provide an organisation of the building that suggests the idea of a caravanserai – the traditional resting places

that supported the flow of commerce and travellers across desert trade routes. Nouvel himself echoes these sentiments, describing it as “a modern-day caravanserai” where visitors can “leave the desert behind, returning with treasured images that remain engraved on your memory”. A further metaphor from the architect, as the notion of a society in movement is beautifully encapsulated.

The exterior discs of the National Museum of Qatar are made up of primary and secondary steel truss structures, assembled in a hub-and-spoke arrangement. (Image Flickr Damon McDonald)

Finished product

Conceptualisation, it would seem, with sentiment and substance at its core, does raise a few questions, the most obvious being, quite simply: How will it look when it is finished? Architectural illustrations, after all, rarely depict accurate reflections of the real world. Qataris will hope (and probably expect) it to be a radiant jewel in the desert peninsula’s crown, but will it live up to these imposing expectations? Such a large-scale and monotone structure is sure to divide opinion. Will the extravagant ideas that tumbled from Nouvel’s award-winning mind translate into reality in the exact ways he visualised? Which leads us, of course, to the question; the question that pervades the mind of each person involved with the project, whether they care to admit it or not: Is it even achievable? And therein lies the rub. What goes on behind the scenes of a construction site is very rarely a smooth transition from design to build. In the Middle East in particular, it is a rare occasion where it could be said that everything’s coming up (desert) roses. And while this axiom applies to even the simplest

One of the single most difficult problems to conquer on such a bewildering project is the inevitable deviation of certain elements from their design position.

Designer of the National Museum of Qatar, Jean Nouvel, describes the project as a modern day caravanserai. (Image Ateliers Jean Nouvel)

2015 | QCN YEARBOOK | 41

qatar projects

“Just as Al Jazeera emits a voice which has become that of the Gulf, so the National Museum of Qatar will become Qatar’s voice of culture, delivering a message about the metamorphosis of modernity and the beauty that happens when the desert meets the sea.” – Jean Nouvel, designer

42 | QCN YEARBOOK | 2015

of structures, it translates to a rather more extravagant meaning for those tasked with delivering the most complex project in the whole of the Gulf. The aforementioned discs of varying angular trajectories, diameter, curvature and instances of interpenetration throw up innumerable difficulties from both an engineering and installation perspective. The exterior discs are made up of primary- and secondary-steel truss structures, assembled in a hub-and-spoke arrangement. Each of these spokes have elaborate, four-point adjustable brackets and as each and every one of the surveyors and engineers will testify, it takes more than a smile to get them positioned correctly. The glass-reinforced concrete (GRC) cladding then sits atop these brackets, enveloping every millimetre of the discs’ surface and eventually wrapping around them at the perimeter. If this intricate positioning process – requiring groups of workers collaborating on a minute-by-minute basis – were to be carried out in controlled laboratory settings, then the surveyors and their installation teams would be faced with sophisticated and taxing calculations, as well as delicate repositioning movements, all performed ad hoc, to ensure each panel has the correct position relative to X, Y and Z coordinates. That is to say, the four corners of each quadrilateral panel must be positioned correctly – to within two millimetres (mm) of accuracy – in terms of left/right (X), in/out (Y) and height (Z) across numerous different planes, angles and degrees of curvature. To label that ‘tricky’ would be to display a flair for the understatement that would rival Nouvel’s design ingenuity.

Take that task outside of ‘laboratory settings’, however, and relocate it to an ever-changing landscape where exposure to extreme sunlight is unavoidable, temperatures upwards of 45 degrees Celsius and humidity levels of 90 to 100 percent are commonplace, and condition changes of almost 30 degrees Celcius from sunrise to sunset occur almost year-round (causing the already complicated steeltruss configuration to expand and contract by as much as 10 to 15 mm throughout the day). Add to that the almost laughable but ostensibly pervasive misconception that coherent English is spoken by every labourer, installer and engineer on the site, and the picture becomes far clearer and uniquely formidable.

Further obstacles

Such are the unenviable issues that principal contractor Hyundai Engineering and Construction is facing – admirably, it must be said – on a daily basis. To delve a little deeper into the challenges, one of the more onerous obstacles lies at the intersection points of the different discs – for the discs that ‘stand alone’ are few and far-between. As one can imagine, where one disc, which, for example, has an angular trajectory of 45 degrees, meets another that sits off the horizontal plane by 30 degrees, complex predicaments arise when one, or both, of these discs (while being within the allowable tolerances) are not perfectly positioned. This obviously has a direct impact upon the ability of the surveyors and installation teams to install the relevant GRC panels in the correct theoretical positions. In the hands of lesser men, panic would ensue.

Each of the spokes in the exterior discs of the National Museum of Qatar has elaborate, four-point adjustable brackets. (Image Astad Project Management)

According to Jean Nouvel, designer of the National Museum of Qatar, the project is a metamorphosis of modernity and the beauty that happens when the desert meets the sea. (Image Astad Project Management)

feature story

To allay this headache, however, Hyundai has exerted considerable foresight by introducing minor, yet deliberate delays to the installation of the panels that meet at intersecting discs. They have chosen to execute as-built surveys that will record the site conditions whenever necessary and fabricate bespoke panels that should slot into place like the final pieces of a colossal jigsaw puzzle. This solution not only displays admirable time management manipulation, as the undesirable scenario of cutting panels in situ is avoided, but is also fiscally sound as labour teams are not forced to down-tools while a solution is deliberated by higher management.

Designing the impossible

As is evident, Hyundai is not naïve to the complexity of the quandaries which they face and have taken several precautionary measures to ensure the project is delivered on time and to specification. One of these measures takes the shape of German design consultants

Werner Sobek, who has been instrumental in relieving some of the issues being encountered. One of the single most difficult problems to conquer on such a bewildering project is the inevitable deviation of certain elements from their design position. The location of each disc on site has a theoretical position that is predetermined at the design phase. Achieving that placement on site, in the exact correct position according to the theoretical values, is practically impossible due to various accumulative tolerances related to fabrication, surveying and installation that simply cannot be avoided. With that being said, the design of the GRC panels is directly related to the design of the disc and therefore, if the discs are wrong (even to within acceptable degrees of tolerance) how will the panels fit? The design consultants, Werner Sobek has a thorough understanding of theoretical versus actual and has devised a decidedly adept system to mitigate certain errors. Deviation of the discs, in terms of the angular trajectory, sway, height positions being too low or too high, or even bowing and bending at the extremities, are accounted for in a bespoke set of mathematical formulas (laid out on a staggering array of spreadsheets) that allow each surveyor and their installation teams to make the numerous adjustments necessary on site, based on the actuality of each disc’s position. Of course, it is one thing to have a design consultant prepare an all-conquering spreadsheet that allows inaccurate, or even incorrect, disc position to be addressed, but if the professionals in the field are unable to comprehend its functionality, apply the mathematics and translate the theory to reality, then this exercise fails before it has even begun. And this is where surveying experts come to the fore. Specialising in cladding and façade works, Swansea Surveys is actively positioning themselves as the direct link between the design office, Hyundai management and the battleground that is the site itself, gaining an exhaustive understanding of the predicaments that each are concerned with, and proposing real-time solutions that satisfy all parties and address all requirements that may arise.

220

Capacity of the auditorium at the National Museum of Qatar.

Eradicating difficulties

To date, there have been countless vexations that the installation teams formerly present on site were simply unable to overcome, with none (as of yet) having a sufficient understanding of the necessary processes or possessing the capabilities to efficiently execute the correct installation practices. To eradicate these difficulties, Hyundai has drafted the expertise of Fibro Building, Trading and Contracting. Specialising in GRC fabrication and installation, Fibro have been given the daunting task of performing the convoluted positioning of the panels. As far as the interior is concerned, unique features, including ‘sonorous cocoons’ and entire walls that become cinematic displays, are the trappings currently causing companies such as Eagon Windows and Doors substantial anguish, with their primary concern being the installation of the glazed façades which fill the voids between discs and perimeter mullions (recessed into the ceiling, floor and walls), giving the glazing a frameless appearance when viewed from an external perspective. Perhaps the most overriding concern of all is the scarcity of such adroitness, or even competence, not only on this project, but across the country as a whole.

Lee Winter is a civil engineer working as the general manager at Swansea Surveys, Qatar.

2015 | QCN YEARBOOK | 43

qatar projects

“In the future you may not be able to park your car near the place you would like to see,” says Engineer Abdullah bin Abdulaziz Al Subaie, managing director of Qatar Rail Company, adding that a change in mindset will be required as every person owning a car is just not sustainable.

Doha Metro: Can it work?

Amid concerns, including Qatar’s hot climate, a high percentage of private cars per household and a legacy of urban environment not conducive to an intra-city rail network, questions have been raised about the efficacy of the Doha Metro project. In an exclusive interview with QCN, Qatar Rail Company’s (Qatar Rail) managing director and chairman of the executive committee, Engineer Abdullah bin Abdulaziz Turki Al Subaie, shares the company’s strategies to ensure successful delivery and effectiveness of the Doha Metro, by Farwa Zahra.

44 | QCN YEARBOOK | 2015

interview

The reach of the metro service will be broadened by feeder buses to cover neighbourhoods not accessible by foot.

A model of one of Doha Metro’s stations, once it is ready to start services.

Given the harsh climatic conditions in the Gulf, can a public transport project like the Doha Metro work in Qatar? Engineer Abdullah bin Abdulaziz Turki Al Subaie, managing director (MD) and chairman of the executive committee of Qatar Rail, shares some of the strategies Qatar Rail has adopted to deliver an effective means of public transport. First, the weather. The locations of the 38 stations of the Doha Metro are strategised to be in highly dense areas around Doha, says Al Subaie. “We will try to connect to the surrounding buildings through some kind of corridors, shaded or sometimes even cooled. The stations will provide shelter for people in the hot weather, so it will be more convenient for them to use these stations to move from one place to another.” While the temperature levels within stations and their surroundings can be maintained, what cannot be controlled is the city’s overall climate, making it difficult for commuters to travel by foot. The reach of the metro service is planned to be broadened by the use of feeder buses to cover neighbourhoods not accessible by foot. “We can have them every five minutes or three minutes or 10 minutes, depending on the demand and time of the day,” says Al Subaie, explaining that the frequency of feeder buses will be governed by the trains’ schedules. Another major concern making Doha’s Metro a tough terrain involves the challenges during its construction phase. With the current state of congestion on roads, Doha can ill-afford traffic disruptions. As part of its traffic control strategy, Al Subaie says that the company is trying

to avoid road closures wherever possible. In areas where it is unavoidable, “we always think of diversions of the same capacity. We are trying to keep the time of these road closures or diversions as minimal as possible. Also, we pick a time, if possible, during the year when we have less demand on the road, for instance, in summer.” Last year, Qatar Rail received seven tunnel boring machines (TBMs). The idea for TBMs, Al Subaie says, came after consideration to avoid traffic disruptions. “We are working on many stations but people probably don’t feel it” due to minimal diversions and closures. To maintain traffic flow, Qatar Rail is coordinating with the Public Works Authority (Ashghal), and has recently signed an agreement with Qatar Mobility Innovations Center (QMIC), which will provide services for traffic monitoring, congestion management and logistic management of contractors. Al Subaie says, “We have a lot of materials to be disposed of after this excavation; and the contractors usually move these materials to outside the city. We have big fleets between all contractors. We don’t want these fleets to worsen the situation of traffic inside the city, so we use QMIC for monitoring the fleets, selecting the best time, selecting the best route, trying not to affect the city.” The successful delivery of the Doha Metro is also associated with a ready supply of imported building materials. While the limited capacity of Doha’s old port has been a topic of discussion in the country’s construction sector, Al Subaie does not see it as a problem. “I’m in communication with the head of the port authority and he says that they are not running even at their maximum capacity,” he says, adding that the real demand for imported materials will emerge around the finishing stage of the project. By the time the Doha Metro reaches this stage, Al Subaie is positive the new port will be up and running. For the initial stages such as excavation and concrete, he says, primary materials are used which are usually found in Qatar. “Cement is produced here, sand is available here, water is here, so only the aggregate is imported from outside and there is a big stock in the country, which is sufficient for one year.”

Work in progress

The Doha Metro project will have 38 stations across the city.

Considering the scope of the Doha Metro spread across the city and beyond, management of the project is bound to involve dealing with multiple contractors. “If we have our lines moving from Al Wakrah in the south of the city to the north, it will intersect with power, water, telecommunication, gas, sewer, roads, bridge and also buildings, and if you are also moving this below the ground, you need to study topography and geology,” explains Al Subaie. This intersection, hence, means involving contractors to provide services in areas from engineering to facility and asset management. The key is to select the right contractors and monitor them. In selecting the right contractor, Al Subaie says, the process starts with awareness and expression of interest from companies all over the world. These companies are invited in a forum where Qatar Rail introduces the project, its scope, requirement, conditions and client’s expectations, along with the risks and opportunities involved. The second stage, he continues, involves prequalifying them for different activities or disciplines for civil works, underground works and systems, etcetera. The next stage involves the formation of consortiums featuring a mix of local and international contractors. Explaining the rationale behind this, Al Subaie says, “The idea is that

2015 | QCN YEARBOOK | 45

qatar feature projects story

“There are many international contractors that have experience of railways projects outside of Qatar, but they don’t have local projects know-how.”

there are many international contractors who have experience of railway project outside of Qatar but they don’t have local projects know-how, and we have our local contractors with local projects knowledge but lacking the experience of railway projects.” A consortium, then, he says, is rich in a sense that each party adds value to the project. The selection of these contractors is based on criteria involving financial capacity, previous projects, success rate and client feedback, among other things. This leads to an invitation to bid, after which, the quality of the bid is assessed, followed by technical assessment, technical ranking and commercial ranking.

Taking calculated risks

As construction works continue to progress, questions related to post-construction phase need to be addressed through estimates on headways (frequency of trains) and ridership (number of passengers), which further dictate decisions on procurement of trains. Qatar Rail is currently carrying out a study to analyse passenger demands. A part of this study also involves demand estimates during special occasions such as the 2022 World Cup. “The maximum frequency is to have a train every one and a half minutes, but usually trains run in different cycles during different periods. So during rush hour, it will run at higher frequency,” he explains. While the subject of headways can be explored conclusively once the project is near completion, Al Subaie says the company is exploring options to make it as flexible as possible while maintaining robust safety conditions. “It is dynamic, it is not something fixed, but

every one and a half minutes is considered one of the highest frequencies in the world. You cannot achieve beyond this standard because of safety aspects,” he says. A conclusive finding on headways will also lead to decisions on the number of trains to be procured. With their modular structure, the trains used for the Doha Metro will allow flexibility for varying passenger capacities. “We are starting with half of the train’s length so we can add the same capacity later on in future years whenever we need so… it can go up to 2500,” says Al Subaie. While tram contracts for Lusail Light Transit have already been awarded, Qatar Rail awarded the rolling stock and railway system contract to a consortium led by Mitsubishi Heavy Industries which includes Mitsubishi Corp, Hitaichi, Kinki Sharyo and Thales in February this year. As of April, the company finished tunnel-digging 20 kilometres of Doha Metro project.

A question of attitude shift

doha metro in numbers

2500

maximum capacity of a Doha Metro train

1.5 min Minimum headway between trains

Tunnel boring machines received for the project

46 | QCN YEARBOOK | 2015

3 min

Minimum headway between feeder buses

Station locations

27metres

Depth of stations’ bottom line

Ostensibly, Qatar Rail is equipped with strategies to ensure the metro project sees smooth progress towards its execution. However, the efficacy of this multi-billion dollar project will only be defined by its utility, something that demands an attitude shift from the current transport scene, backed by personal vehicles. For instance, stations located in central Doha will not necessarily be equipped with a large number of parking spots. “In the future, you may not always be able to park your car just near to the place you would like to see,” says Al Subaie, adding that the option to park your car and ride the metro will only be encouraged for passengers coming from the outskirts of Doha. “We are trying to minimise the number of cars entering the city from the outskirts of Doha. So we don’t want, for example, someone to come into the city and park inside the city,” he explains. “When the metro has been built, you need a mindset that supports public transport and the concept of ‘sharing is

Excavation area at the Doha Metro’s Al Diwan site. (Image Qatar Rail)

interview

QAR

46 billion The approximate total cost of the Doha Metro project.

caring’. At the end, it is not sustainable that everyone has their own car and we have to be very conscious of our environment,” says Al Subaie, explaining the company’s final strategy to educate the public in order to increase the metro’s ridership. Accomplishing the company’s vision “to be the favoured mode of transport for all” requires intensive awareness campaigns involving all groups of stakeholders. Qatar Rail plans to launch focused communication campaigns to promote optimum use of metro facilities and to encourage people to use the metro as part of their daily traffic life. These campaigns will also help to educate the general public on the social, economic and environmental benefits. “Our vision is for Qatar to have one of the world’s best integrated transport systems connecting people, places, goods and services, enabling economic prosperity and quality of life for all. We are proud to be undertaking this challenge,” says Al Subaie. “We are heading to achieve the target date for starting the [first phase of] the metro that involves three lines Red, Green and Gold – running by October 2019,” he concludes.

Doha Metro: Impacts educed air R pollution, as CO2 emissions will decrease, resulting in improved human health.

Reduced number of road accidents.

Reduced traffic congestion, potentially cutting down the number of cars from one million to 500,000. Job opportunities at the Doha Metro.

Increased trading between the GCC countries, as each train will remove around 300 lorries or trucks from the road.

Ability for youngsters to travel alone. An important step towards accomplishment of the National Vision

2030.

“We are trying to minimise the number of cars entering the city from outskirts of Doha,” says Engineer Abdullah bin Abdulaziz Turki Al Subaie, managing director of Qatar Rail Company.

Once fully functional, the Doha Metro project is expected to reduce traffic on Doha’s roads by half.

2015 | QCN YEARBOOK | 47

According to the World Health Organizationâ&#x20AC;&#x2122;s 2014 ranking, Doha is one of the most polluted cities in the world. With a high rate of carbon emissions, Qatar government has been increasingly promoting sustainable practices to protect its environment. Of its recent green buildings is the Qatar National Convention Centre (QNCC), pictured here. QNCC was conceived with a focus on sustainability, and was built according to the United States Green Building Councilâ&#x20AC;&#x2122;s Leadership in Energy and Environment Design (LEED) gold certification standards.

Environment & Sustainability 50

Green buildings

Waste Management

Sustainable HVAC

Recycling construction materials

environment & sustainability

Green buildings: Making the move from optional to mandatory

In Qatar – and across the Gulf – green buildings have long been regarded as a responsible option in the construction sector, but as an option nonetheless. Now, buoyed by a locally-focused certification system and driven by pending legislation, green buildings are going from being optional to being mandatory. Is Qatar’s construction sector ready to make the change?

16%

Qatar’s share in GCC’s green buildings market.

Buoyed by systems such as GSAS and backed by government legislation, Qatar’s green revolution looks increasingly certain to happen.

50 | QCN YEARBOOK | 2015

A ‘green’ building is, to a large extent, a Western concept. In regions such as Europe and the United States (US), it was born out of necessity, driven by the idea that, in a ‘green economy’, energy-efficient buildings can help reduce operational costs by cutting down the consumption of active sources of energy. Dr. Yousef Mohammad Al Horr, founding chairman of the Gulf Organisation for Research and Development (GORD), defines green buildings as being sustainable structures where the design “focuses on increasing the efficiency of resource use – energy, water, and materials – while reducing building impacts on human health and the environment through better design, construction, operation and maintenance”. There is a widespread belief that, in a resource-rich region such as the Gulf, the need for energy efficiency is not quite as pressing as it is in the West. As Meshal Al Shamari, director, Qatar Green Building Council (QGBC), points out, “In the West, energy is very expensive. Energy is much cheaper here [in the Gulf]. That makes the attraction to green investment much less enticing.” But in spite of this apparent lack of economic incentive within the Gulf Cooperation Council (GCC), Qatar has emerged as one of the leaders when it comes to green buildings, and, by developing the Global Sustainability Assessment System (GSAS), the country is further establishing itself as a regional – and global – leader in the field. Indeed, of the GCC’s 1200 plus green buildings, 16 percent belong to Qatar; while Doha is home to the Msheireb Downtown Doha project, which houses no less than 100 green buildings. A report by Ventures Middle East ranked Qatar at number two in the region’s green building market. In Qatar, then, the future of construction is a bright, renewable shade of green. But what about the present? Speaking in January 2015, Al Shamari told QCN that, of the 200 green buildings in Qatar, about one quarter were already complete. “We have 50 completed and certified, 100 with Msheireb Properties almost in completion, and many other developments in Qatar Foundation,” he said. “In Lusail City, many projects in design and construction have already started, with further growth in governmental

projects and private projects [which are green].” These projects, he explained, use a combination of the Leadership in Energy and Environmental Design (LEED) and GSAS certification systems. The QGBC, part of the World Green Building Council, has played a crucial role in promoting sustainability in the country’s construction sector through a series of workshops, and has been an active force behind recent green projects in Qatar. The QGBC recently provided another hint at potential legislation, which would move green construction from a voluntary, nice-to-have practice to a mandatory, have-tohave practice. This hint came in the announcement of the launch of Qatar’s first green directory for the construction industry. This directory, which is scheduled for release in early 2016, will list local companies which provide green solutions, both in services and materials. This will be a massive help to companies that are required – in terms of green buildings – to source materials locally. “One of the challenges that we face here is the unavailability of the right information,” Al Shamari says. “Many investors or developers like to use green materials but don’t know what services or materials are available in Qatar, and which kinds of materials are available. So what we are trying to do is make a kind of platform for those products. Any company that would like to register has to come to us, we review the product to check it is clean.” The compilation of that green directory is no easy task, as Al Shamari explains. “The most important process is review of the products, because you get so many from all over the world claiming that they are green. We need to review each product and make sure it conforms to certification. If they have already registered with GSAS, with LEED, with United States Green Building Council, the type of materials they use, the services, that’s very important.” The significance of the Qatari-developed GSAS system, and its relationship to LEED (which was developed in the US), cannot be understated. While the two systems share a similar goal – that is, to help building owners and operators be environmentally responsible and use resources efficiently – the methodologies are different. GSAS, Al Shamari explains, selects items that are more

feature story

Qatar has more than 200 green buildings right now. Tornado Tower, located in West Bay, is one of the most prominent sustainable developments in Doha. (Image FotoArabia)

2015 | QCN YEARBOOK | 51

environment & sustainability

Dr. Yousef Mohammad Al Horr, founding chairman of the GORD, defines green buildings as being sustainable structures where the design “focuses on increasing the efficiency of resource use – energy, water, and materials – while reducing building impacts on human health and the environment through better design, construction, operation and maintenance”.

In March 2012, RasGas Headquarter was awarded Qatar’s first LEED Certification for Commercial Interiors with gold level by the US Green Building Council. (Image FotoArabia)

“Once we have the new [GSAS] codes established and operating in the market, that will force everybody to go for that approach.” – Meshal Al Shamari, director of Qatar Green Building Council.

52 | QCN YEARBOOK | 2015

suitable to Qatar, and its applicability is spread across a diverse range of projects. “There is a GSAS for mosques, which we don’t have in LEED,” he says. “Then, there is GSAS for rails, for example, and other such projects that are more relevant to the Arabian countries.” Given a choice between LEED or GSAS certification, many developers are finding themselves opting for both. The 2022 World Cup stadiums, for example, appear to be aiming for dual certifications. “I think some of them will have a dual certification,” notes Al Shamari. “They can have LEED and GSAS, because once you start the development or collecting the points related to your rating system, it is an easy process to get another certificate.” Qatar’s green buildings vision is getting considerable government backing – as demonstrated by the Qatar National Vision (QNV) 2030 and its corresponding National Development Strategy (NDS) 2011-2016. The market sentiment in the country’s construction sector is hinting, more and more, towards the implementation of legislation which would make green buildings mandatory.

In fact, the Qatar NDS 2011–2016 states that GSAS “will be brought into the new regime”. Darin Rovere, president of the advisory firm Sustainability Excellence, believes that the key now is for Qatar to translate that conceptual support of green buildings into effective implementation. “Success factors include an emphasis on systematic alignment of corporate, government and civil society strategies and activities with the QNV’s clearly-articulated national objectives, agreement on national key performance indicators, and challenging but achievable national targets for these indicators. Given Qatar’s ambitions and pace of progress, stakeholders should expect and work towards increasingly more aggressive targets relating to different aspects of economic, environmental, social and human capital performance. Multi-stakeholder efforts can help to share risks, promote faster adoption, and accelerate learning and performance gains,” he says. Rovere sees Qatar’s clearly articulated QNV and NDS as being one of the State’s biggest advantages when it comes to sustainability. “Alongside this advantage is the energy and sector initiative that demonstrates how to put the QNV in action, for a sector that reflects more than half of Qatar’s economy,” he says. “It aligns to the QNV, targets and assesses performance against the QNV and NDS, drives performance gains amongst participating companies, and generates widespread commitment to actual implementation of the QNV by critically important stakeholders. This combination is a competitive advantage with regard to most of the region, as well as internationally, and can be further built upon.” Al Shamari expects green buildings to ultimately become mandatory – especially once the GSAS system is

feature story

According to Meshal Al Shamari, director of Qatar Green Building Council, a motive behind creating Qatar’s green building directory is the fact that many developers, despite the willingness to adopt sustainability, do not know what green services or materials are available here.

Passivhaus, an ongoing project of QGBC, is a house that depends on passive sources of energy wherever possible. The experiment underway is aimed to calculate the amount of energy that can be saved through sustainable building practices. Pictured here is an illustration of a standard villa (left) along with a passivhaus.

GSAS has now been adopted into the environmental design curriculum at Qatar University and Saudi Arabia’s King Fahd University.

ready for implementation. “Once we have the new [GSAS] codes established and operating in the market, that will force everybody to go for that approach,” he says, adding that, “It is a choice now but I’m sure in the near future, it won’t be.” Pushed for a prediction on the timing, Al Shamari says that, “In two years’ time, we will have mandatory regulations, so that will, for sure, increase the number of [green] projects. The optional period will give a chance to companies to enter that market, because sooner or later it will be mandatory. It is better that everybody prepares during these two years to be ready for the next move.” Naturally, as this legislation looms larger and closer, one can expect the demand for green building to increase dramatically. To meet that future demand, Qatar is already developing a new generation of green architects, designers and engineers. GSAS has now been adopted into the environmental design curriculum at Qatar University and Saudi Arabia’s King Fahd University. “This means that upcoming designers are systematically trained in GSAS, and mandatory compliance by developers is simpler to

achieve as the system is now codified in national building specifications,” says GORD chairman Dr. Al Horr. Of course, the successful and effective implementation of GSAS – and of a broader culture of green building – cannot come from government endorsement and university lecture halls alone. Buy-in will have to come from the engineers and corporates who design and build these structures, now and in the future. The buy-in is already coming. To date, more than 2000 engineers have completed GSAS-CGP, a three-day workshop to become GSAS-certified green professionals, while more than 300 companies have registered as Service Providers of GSAS, which authorises the representative company to lead the overall planning, scheduling and coordinating of the required GSAS construction inspections. In Qatar, as across the GCC and the world, it is no easy task to make the construction industry ‘go green’. As Dr. Al Horr points out, there are a number of hurdles which stand in the way – from a lack of incentives to a lack of awareness about green construction, higher perceived costs, a lack of regulatory measures and a lack of overall acceptance on the social level. But as Qatar looks to a greener future, there is increasing room for optimism. “GORD is supporting the four pillars of Qatar National Vision 2030 (human, social, economic and environmental developments) by crafting a green legacy to which all government buildings will have to conform by 2016,” says Dr. Al Horr. “Afterward, all new commercial buildings and residential buildings will be brought into the new regime.” It is that word – “will”, not “might” – that points to the future of green building in Qatar. Buoyed by systems like GSAS and backed by government legislation, Qatar’s green revolution looks increasingly certain to happen.

2015 | QCN YEARBOOK | 53

environment & sustainability

A mountain of waste

The rapid population and economic growth Qatar has experienced over the past decade has led to a unique environmental challenge the country needs to address immediately â&#x20AC;&#x201C; its waste generation problem. What is more, this environmental challenge could also be a great area of untapped potential for economic development of the country, writes Shehan Mashood.

54 | QCN YEARBOOK | 2015

feature story

“Although our research has found online billing to be more secure and timely for our customers, some are requesting the continuation of paper bills,” says Fatima Sultan Al Kuwari, director of community and public relations at Ooredoo, while describing the company’s initiative to encourage environment-friendly billing methods.

Qatar Development Bank figures from 2013 show that Qatar’s solid waste management market has the potential to generate as much as QAR2.4 billion a year. (Image Corbis)

Over the past decade, the amount of solid waste generated in Qatar has risen rapidly, almost alongside the growth of its gross domestic product (GDP). In fact, numerous studies have shown that around the world, waste generation has been closely linked to the growth of a nation’s GDP, and Qatar is no different. However, this has meant that Qatar is among the biggest waste generators per capita in the world, producing 584 kilograms per year, ranking it 18th in the world among 164 countries. Data also shows that even with such a relatively small population, its total municipal waste generation of more than 2.5 million tonnes per year ranks it 71st in terms of total waste generated. Addressing this waste management challenge is an environmental imperative that the government has taken seriously. Among its initiatives include the Domestic Solid Waste Management Centre (DSWMC) located in Mesaieed, which started operations in 2011, and has the ability to divert up to 95 percent of waste away from landfills. The centre, which costs USD550 million (QAR2 billion) to build, was supposed to have capacity sufficient until 2019. However, by mid-2013, the plant was operating at its full capacity of processing 2300 tonnes of domestic and solid waste per day. This represents a unique opportunity for private sector investment in an area that shows significant promise. In fact, Qatar Development Bank figures from 2013 show that Qatar’s solid waste management market has the potential to generate as much as USD663 million (QAR2.4 billion) a year. The data shows opportunities

“Commercial construction companies look for ways to stay under budget, and it turns out that being environmentally friendly might be the key to doing just that.” – Nicola Maxwell, chairperson of Solid Waste Interest Group, QGBC.

Qatar’s waste in numbers Waste generation per capita

584kg per year

Total municipal waste generation

2.5million tonnes

per year

Waste incinerated

4% Waste recycled

3% Waste disposed in landfills

93%

Source: Waste Atlas

2015 | QCN YEARBOOK | 55

environment & sustainability

The Ministry of Environment recently formed a partnership with the Qatar Green Building Council to look into making recycling more efficient across Qatar.

“As industrial activity expands, scrap generation and recovery opportunities are on the rise.” – Salman Shaban, Lucky Star Alloys.

56 | QCN YEARBOOK | 2015

in the areas of waste collection, sorting, recycling, producing electricity from waste, biological and waste disposal. The business opportunity Many businesses are starting to notice the importance of waste generation and management, and have numerous initiatives in place. The construction industry is of special importance in Qatar, which in 2012 contributed to 78 percent of all waste generated in Qatar. Each month, the Solid Waste Interest Group, part of the Qatar Green Building Council (QGBC), meets to discuss and strategise effective ways to handle solid waste in Qatar, says Nicola Maxwell, chairperson of Solid Waste Interest Group at QGBC, and sales manager at Averda, a waste management firm. “Recycling is one of our big areas of focus, and we just recently formed a partnership with the Ministry of Environment to help find ways to make the process more efficient across the country,” says Maxwell. Cost is a major factor for companies to consider when implementing waste management, especially in Qatar where there is a high level of competition in the construction industry. Not only is reusing, repurposing, and

recycling construction material good for the environment, explains Maxwell, but it might also be good for an organisation’s bottom line. “Like many European commercial construction companies, firms in Qatar also look for ways to stay under budget within their construction sites, and it turns out that making the effort to be environmentally friendly might be the key to doing just that,” she explains. For example, says Maxwell, taking steps to reuse or recycle a material on site may make the difference between being under or over budget. It is probably also appealing to clients, who see the value in owning green buildings, she points out. The key to creating an economic advantage in such situations requires a little advance planning. “Assess a demolition site before tearing down a building and keep an inventory of anything that can be reused or sent off for recycling,” Maxwell adds. “Get the construction team involved and train them on what to look for and what to do with any salvaged items. Then, create designated areas where those salvaged materials will be sorted. Make sure you watch over your team to hold them accountable for the task at hand. Try to make use of any

reusable items on the job site, as that will be the most cost-effective technique.” It is possible to reuse steel, which has the added benefit of often being produced locally, from recycled scraps. According to Maxwell, materials such as steel can be recycled for scraps, and carpet can

Revenue Opportunities Construction & demolition

Household recycling

QAR

Commercial waste collection

Commercial waste recycling

QAR

382 364 million million 364 276 million million Waste to energy

QAR

491 million Source: QDB Data

feature story

be sent off for recycling. It is even possible to crush and reuse concrete. Not all of these techniques will work on every commercial construction site, says Maxwell. However, thinking carefully before demolishing an existing building to make way for a new one may yield some surprisingly reusable materials, help buildings adhere to green standards, and save on project costs in the process. Taking advantage One such business set up to take advantage of Qatar’s growing waste problem is Lucky Star Alloys, a scrap metal recycling facility. The facility is located in the New Industrial Area and designed for processing, quality checks and packaging for delivery to clients locally as well as for export. The facility was designed in response to the growing industrial requirements of Qatar, says Salman Shaban, the commercial manager of Lucky Star Alloys. “The main objective of the overall waste metal recycling process is to divert as much quantity as possible from the landfills to our recycling facility,” says Shaban, adding that while most of the recycled materials are exported to clients in over 40 countries around the world, there has been increased interest in the recycled materials from their facility, and material is being sold locally to recently established recycling plants within Qatar. The concept of waste metal recycling is relatively new in Qatar, explains Shaban, and the recycling industry is at a stage where the new structural reforms and infrastructural developments are being implemented. However, he says, he is keen to be a part of this green movement by adding value to the country’s recycling systems while making it economically viable. “As industrial activity expands, scrap generation and recovery opportunities are on a continuous rise,” says Shaban. The future of waste Maxwell agrees saying, “The government is in the process of amending and re-implementing waste legislation here in Qatar. Once this legislation is imposed, people and businesses in Qatar will ultimately have to manage their waste more effectively. With enforced awareness and action around effective waste management, projects across the country such as the World Cup will be able to manage their waste and recycling at an optimal level.” Shaban believes that a key to any national plan should include enforcement in areas of segregating waste at the source, penalising those who do not abide by the rules and increasing both general awareness and accessibility to recycling among the population. Maxwell concurs, saying, “Encouragement and awareness are crucial factors in ensuring sound waste management practices such as recycling.” However, there are numerous challenges to getting companies and everyday users to waste less and reuse more to stem the rise of waste. At Ooredoo, for example, the company is rolling out a programme that removes paper billing as an option.

“Our main challenge is our customer’s willingness to move from paper bills,” says Fatima Sultan Al Kuwari the director of community and public relations at Ooredoo. She adds, “Although our research has found online billing to be more secure and timely for our customers, some are requesting the continuation of paper bills.” As cities such as Doha grow, there is a newfound need to drastically reduce waste streams, says Maxwell, and this will require a major shift away from our current linear model of waste management, where we make, use, and then dispose. “Supplies of raw material are dwindling while urban centres across the developing world are expected to see a dramatic population increase over the coming years,” says Maxwell. In order to tackle Qatar’s waste management problem, there must be industry-wide cooperation in order to ensure a synergy between waste generation, government legislation and society’s outlook on waste, she continues, and there are profound benefits to incentivising stakeholders. But in the meantime, the tangible goals should be to reduce avoidable waste, and identify ways to use waste that benefits our economy, Maxwell concludes.

Qatar’s construction industry is by far the largest contributor to waste, accounting for 78 percent of total waste generated in 2012. (Image Corbis)

18th Qatar is among one of the biggest waste generators per capita globally, producing 584 kilograms per year.

2015 | QCN YEARBOOK | 57

environment feature story& sustainability

The Pearl-Qatar is among Doha’s leading real estate projects relying on sustainable means of HVAC. It also houses the largest district cooling plant in the world.

Winds of change: Moving from conventional to sustainable HVAC systems in Qatar With Doha emerging as the 12th most polluted city in the World Health Organization’s ranking for 2014, Qatar cannot afford to further increase its carbon footprint. The country generates 31,000 gigawatt hours (GWh) of electricity each year, while its power requirements stood at 6412 megawatts as of 2013, steadily growing over the years. A large part of the energy consumed goes into the heating, ventilation and air-conditioning (HVAC) components. Effectively, it means that by changing conventional HVAC practices to encourage sustainable solutions, Qatar can substantially improve its environmental quality. QCN’s Farwa Zahra speaks to some HVAC experts in Qatar, discussing the past, present and future of sustainable HVAC in the country.

“Residential and commercial buildings in the GCC are estimated to use 70 to 80 percent of the energy that is generated, out of which 60 to 70 percent is used for climate control.” – Daniele Cerutti, general manager, Knauf Exeed Insulation.

58 | QCN YEARBOOK | 2015

According to HVAC Market in GCC 2012-2016 by Research and Markets, the HVAC market in the Gulf Cooperation Council (GCC) is expected to grow at a compound annual growth rate of 7.43 percent over the period 2012 to 2016. A key driver, analysts say, is the increasing construction activities in the region. On the positive side, the region is also growing in terms of sustainable HVAC systems. But why is there a need for Qatar to adopt sustainable means of HVAC? Why sustainable HVAC? Oxford Business Group’s report Qatar 2014 suggests that the country generates 31,000 GWh of electricity each year. While currently in excess, the “demand will begin to outstrip supply by 2018 at current capacity”. According to the Qatar Electricity and Water Company, the country’s power requirements have increased from 3550 megawatts (MW) in 2007 to 6412 MW in 2013. A large part of Qatar’s current electricity supply goes into the HVAC component of the developments, further rising Doha’s position in the world ranking for most polluted cities. “Residential and commercial buildings in the GCC are estimated to use 70 to 80 percent of the energy that is generated, out of which 60 to 70 percent is used for

climate control,” says Daniele Cerutti, general manager, Knauf Exeed Insulation. Explaining the connection between sustainable HVAC and energy consumption, Vasanth Kumar, chief executive officer of Arabian MEP Contracting, says, “Since HVAC systems alone consume approximately 70 percent of electrical load in the Middle East, even a small saving means a lot in terms of sustainability as it will substantially reduce carbon footprint.” Apart from energy efficiency, HVAC also significantly impacts water efficiency, indoor environment quality and operation and maintenance of a facility throughout its life. While the environmental impact of traditional HVAC is crucial for Qatar, another downside of these systems include their higher cost. “A generally high-level estimate regardless of the nature of buildings, indicates that about 28 percent of the initial cost of mechanical, electrical and plumbing (MEP) segment is attributable to HVAC installations,” says Jaygopal Kottilil, senior manager, MEP Engineering, Tanween. The past As Qatar strives to reposition its growing HVAC market, it must be remembered that the country has a history of sustainable cooling techniques used in the Arab

feature story

architecture. Known as ‘badgir’ in traditional Persian architecture, wind catchers have been used in Iran and the Arab world since ancient times. The Iranian cities of Yazd are marked with a distinctive feature of badgirs rising above the roofs shaping their unique architectural landscape. Also known as ‘malqaf’ in the Arab world, the wind catcher technology is also believed to have existed in Ancient Egypt. Walking through Souq Waqif’s thoroughfare, one can find examples of such wind catchers, representing traditional Arab architecture. Then there are works of modern construction such as Qatar University. What appear as structural units to enhance the buildings’ façade are in fact modern wind catchers. Standing at varying heights to catch maximum prevailing wind, these wind towers feature four openings each, adorned with geometrical patterns. Depending on passive wind, a badgir or malqaf provides a natural ventilation system. It is designed with scoops or shafts rising above the roofs to catch strong wind, passing it through the interior space, and eventually building up pressure to release the hot air out. A badgir, thus, works both as an air-conditioning and exhaust system. The air entering the interior can be channelled across various spaces through individual openings, while cutting down energy consumption. The present Effective as it may seem, wind catchers and shades are not the only sustainable ventilation and air-cooling

systems. Using some of the most advanced sustainable HVAC practices is the Doha Festival City project, currently under construction to emerge as Qatar’s largest mall. Providing details of the project’s sustainable HVAC features, Prasanth Chakkingal, lead mechanical engineer at Arabian Engineering Bureau, says that skylights in the mall’s corridors are provided through glazing in the vertical wall rather than roof skylight. This design feature, he adds, will help avoid direct transmission of solar energy into the conditioned space. Complying to ASHRAE 62.1 2007 standards, there will be adequate fresh air for better indoor air quality, while the engineers are working to implement effective U-values (a measure of the rate of heat loss or gain through a construction) for walls, roofs and glazing. Furthermore, the AC condensate will be collected and used for irrigation. Similarly, treated sewage effluent (TSE) water will be used for Cooling Tower Makeup and blown down with minimal treatment to be used for irrigation. The fresh air fans and exhaust air fans have been provided with variable speed pumping in heat recovery units that will be operated to 50 percent of their capacity during nonoperational hours of the mall. Other projects using sustainable HVAC, Kumar mentions, include the Lusail City, Mshereib Downtown project, Qatar Internal Security Force developments, Qatar Foundation, Qatar Rail and FIFA-related projects. “There are many such sustainable HVAC projects in Qatar and the biggest of all is Qatar Cool district cooling plants. They cover The Pearl-Qatar entirely and a major

70%

Approximate percentage of electricity consumed by HVAC systems in the Middle East.

Qatar University’s unique façade is inspired by traditional wind catchers. Standing at varying heights, these wind towers come with four openings designed with geometrical patterns. (Image FotoArabia)

2015 | QCN YEARBOOK | 59

environment & sustainability

Atiqul Alam, senior mechanical engineer, KEO International Consultants, says that considering that buildings consume about 35 percent of the overall energy demand in Qatar, it is important to reduce the buildings’ U-value to cut down cooling loads in new projects.

60 | QCN YEARBOOK | 2015

portion of West Bay towers zone,” he adds. The future Looking at the ongoing projects, the future of sustainable HVAC in Qatar seems promising. “From what it was some 10 years ago, I see considerable improvement now in Qatar. This is certainly encouraging, acknowledging the fact that Qatar is having rich reserves of energy,” says Tanween’s Kottilil, who believes that an effective HVAC system is robust, reliable, sustainable, economical and safe. So, what can Qatar do to ensure these traits are part of its future HVAC market? The country is already utilising district cooling technology in some of its leading developments including The Pearl-Qatar. Speaking about this technology’s effectiveness, Kumar says, “District cooling systems provide significant reduction in electrical consumption, up to 50 percent compared to traditional HVAC systems.” Atiqul Alam, senior mechanical

engineer, KEO International Consultants, says a number of approaches lie ahead for Qatar to strengthen its green portfolio through HVAC. Considering that buildings consume about 35 percent of the overall energy demand in Qatar, he says, “The first approach we could take is to reduce the building U-value to cut down cooling loads in new projects. Currently an average building U-value varies between 0.7 to 1.2 W/m2.K. If we could set up a minimum U-value target, for instance, 0.25 W/m2.K, we could get three to five times more thermalefficient buildings.” Another suggestion he offers is to design and install seawater-based district cooling plants. Such projects can be integrated with a power generation plant and realise trigeneration principles where we can produce power, utilise by-product heat and produce chilled water for district cooling. “In buildings, we could implement gas-powered fuel cells as a backup energy source. We could also set up minimum energy efficiency targets for HVAC equipment to further implement green HVAC solutions,” says Alam. Challenges ahead While a number of approaches towards sustainable HVAC are

One way of achieving sustainable HVAC is by installing district cooling plants, pictured here.

“There are serious consequences of over-designed HVAC systems, such as occupying additional space and volume, loss of leasable/ saleable area; increased capital cost and operating cost, etcetera.” – Jaygopal Kottilil, senior manager, MEP Engineering, Tanween.

feature story

there for Qatar to embrace and encourage, a number of challenges also lie ahead. “Owners, designers, contractors and facility operators, nowadays, appear to seriously address green issues in many of their projects. However, I firmly believe Qatar still has a long way to go,” says Kottilil, warning about the risks of over-engineering and overdesigning HVAC. Over-designing, he says, results from our habits to remain safe in rudimentary engineering calculations, overuse of design margins and excessive application of safety margins. “There are serious consequences of over-designed HVAC systems, such as occupying additional space and volume, loss of leasable/saleable area, increased capital cost, increased operating

Despite increasing environmental concerns, traditional air-conditioning in the form of standalone units is widely used in most residential developments across Doha.

cost due to inefficient operation of overspecified HVAC equipment, and increased utility (electricity and water) charges,” he says. Suggesting a solution to address this challenge, he says that a more rational and prudent approach is to understand the nature of a building’s perceived operational strategy and then set the design criteria to align with it. (See boxout: Eight design considerations for sustainable HVAC) Over-engineering, on the other hand, results from overspecifying materials, equipment and installation details, and can be addressed through value engineering. As many advanced approaches are yet to enter Qatar’s sustainable HVAC market, the ones currently being used are not short of problems. Explaining a complexity about district cooling technology, for instance, Kumar says, “The flipside of district cooling is that it can be implemented only for large real estate developments or mega projects, as it works on economy of scale.” Effectively, it means that Qatar needs to explore a variety of approaches for sustainable HVAC to ensure its practicality for all sorts of projects. These concerns, however, are only to mention a few. “There are several challenges but the two most crucial challenges are high cost and skills shortage,” concludes Kumar.

Eight design considerations for sustainable HVAC Like a traditional HVAC system, the key to achieving an effective sustainable HVAC system is by incorporating it right from the planning stage. Prasanth Chakkingal, lead mechanical engineer at Arabian Engineering Bureau, shares some key considerations when designing a project with sustainable HVAC.

Use an integrated design approach whereby key stakeholders such as architects, mechanical engineers, electrical engineers, structural engineers, interior designers, clients, project management consultants/ client representatives and sustainability engineers sit together from the conceptual stage and evolve the design. Coordinate with the architects when finalising the building fenestration, and concluding the effective U-values for wall, roof and window/skylights. Select HVAC equipment on a case-to-case basis with high coefficient of performance. For instance, water-cooled chillers should be used where water is available and opting for variable refrigerant flow system for air-cooled direct expansion units. Use treated sewage effluent water for water-cooled systems and use blowdown/AC condensate drain with minimal treatment for irrigation purposes. Provide pumps with variable speed pumping (VFDs) to optimise the energy. Provide fresh air-handling/exhaust unit blowers with VFD and ramp down as required during non-operating hours based on actual demand of the project. Employ heat recovery systems such as thermal wheel, heat pipe/ plate heat exchanger for optimising energy. Incorporate adequate controls or building management systems to monitor the operation of the HVAC system according to the actual project requirement.

2015 | QCN YEARBOOK | 61

environment & sustainability

Recycling in Qatar’s construction sector Qatar heavily relies on imported materials to meet the needs of its ongoing construction activities. Dr. Khaled Hassan of TRL shares insights on transforming construction waste into building materials.

A number of large-scale infrastructure projects underway in Qatar are facing a shortage of locally-manufactured materials of high quality, thus relying on imported aggregate. At the same time, large quantities of construction and solid wastes are generated and sent to landfill sites. To help overcome this problem, a project on the ‘Innovative Use of Recycled Materials in Construction’ was awarded to a group of stakeholders, including TRL, with its collaborative partners of Qatar Standards, part of Qatar’s Ministry of Environment, Public Works Authority (Ashghal), and Qatar University in 2011. The three-year project, which focuses on transforming waste materials into building materials, is funded by the National Priorities Research Program (NPRP), which is administrated by the Qatar National Research Fund (QNRF) at Qatar Foundation. Innovative Use of Recycled Materials in Construction is in line with Qatar government’s policy on sustainable development and protection of the environment as mentioned in the Qatar National Vision 2030. Aimed at promoting sustainable construction in Qatar, the programme resulted in the identification of recycled aggregates from excavation waste (EW), and recycled concrete aggregate (RCA) being sourced from a landfill site at Rawdat Rashid. Considerable quantities of recycled aggregate were also identified in Qatar that could make a significant contribution to the demand for aggregates in various construction applications. Comprehensive laboratory testing was carried out to identify the optimum use of EW and RCA. The selected optimised mixtures were then used in the construction of full-scale site trials (buildings and roads) to demonstrate their applicability. The trials were monitored in service for a minimum of one year under normal exposure

62 | QCN YEARBOOK | 2015

In addition to improving the aggregate supply chain, the use of local recycled aggregates reduced the carbon footprint by at least 50 percent, mainly due to the energy saving in transport.

conditions such as heat, humidity, aggressive ground conditions, and heavy trafficking, and the results were used to update the Qatar Construction Specifications (QCS) 2014 and promote green construction of buildings and roads. Consequently, the latest edition of the QCS, published in 2014, permits the use of recycled aggregates from EW and RCA as coarse aggregate in concrete, at up to 20 percent replacement of imported gabbro for structural concrete and up to 50 percent for nonstructural concrete. Recycled aggregates are also permitted up to 100 percent in sub-base applications. Similarly, excavated limestone waste is permitted as aggregate in asphalt in the lower layers of the pavement, but not in the surface course. The recycled aggregate materials are supplied by Qatar Quarry Company (a business partner of Lafarge); the building trials are constructed by the Qatari Arabian Construction Company (QACC), and the trial road is constructed by Boom Construction Company. In fact, a key success of the project has been the collaboration between government, industry,

research and academia, all of which support the government objectives of sustainable development and green construction. It is expected that the use of recycled aggregate will yield major economic and environmental advantages when compared to the use of imported aggregate. A comparison of the likely costs of local recycled aggregates in Qatar indicated a significant reduction of 60 percent compared to imported aggregates. In addition, the use of local recycled aggregate reduced the carbon footprint by at least 50 percent, mainly due to the energy saving in transport that can be avoided in shipping the primary aggregates to Qatar. Limitations on port capacity and concerns about the quality of imported aggregate would also support greater uptake of the recycled materials in construction. The implementation of recycling in construction on a large scale would require significant changes to the existing construction practices in Qatar. Codes of practice have been developed for sorting out wastes at source before sending to landfill and certifying recycled aggregate by Qatar Standards. These will significantly improve the quality of recycled materials, provide confidence in use, and change the perception of inferior quality of recycled materials.

Dr. Khaled Hassan is the regional manager for TRL’s Middle East operations.

Qatar’s construction currently stands among the fastest growing markets in the international construction industry. The growth comes with the market’s evolution from a technological standpoint. Sophisticated computer programmes such as AutoCAD and Building Information Modeling are now increasingly used in the country’s ongoing projects.

Tech& Legal 66

construction apps

Building information modeling

industry insights: Herbert smith freehills

qatar construction laws IN 2014

tech & legal

Yves Frinault, founder and CEO of a construction app called Fieldwire, says, “As smartphones and tablets continue to become more affordable, they are going to start showing up more and more on site, and carry with them very cost effective, powerful and mobile technology.”

Smartifying construction:

Can mobile apps assist the industry in Qatar?

Growing mobile device engagement is reshaping the way business in Qatar is conducted, but can the country’s construction sector embrace the technological boom as rapidly as other leading sectors? With the industry heavily dependent on an unskilled workforce, can mobile apps transform Qatar construction? QCN’s Farwa Zahra approached representatives of construction-focused apps to explore the scope, viability and challenges of implementing these apps in Qatar. The beginning of building and construction is as old as human history itself. Starting from pioneering hand tools and readily available materials such as stones and wood, the industrial revolution transformed the pace and nature of the construction industry. Heavymoving equipment changed on-site operations, bringing skyscrapers to reality. Since then, technology in the construction industry has continued to advance. Today, tenders are being floated electronically, allowing access to more bidders. Recruitment is increasingly facilitated through the Internet. Most construction companies now have an online presence through official websites and social media. From a technical standpoint, heavy equipment is constantly being innovated to facilitate seamless transport of materials. Precast concrete and pipes have accelerated the pace of construction, while 3D modeling has enabled modifications within a project right at the design stage, and Building Information Modeling (BIM) has further increased the scope of prior planning. Speaking with QCN, Yves Frinault, founder and CEO of Fieldwire – a construction app – says, “If you look at the last 20 years, you can see very successful technological advances. 3D modelling has completely changed the way we design buildings, collision models and structural analysis. Prefabrication and modular design is showing

66 | QCN YEARBOOK | 2015

To effectively deliver the ongoing mega projects, Qatar’s construction industry has to move on from predominant paper-based drawings and communication to smart technologies such as BIM and construction apps.

feature story

Use of construction apps designed for coordination purposes can significantly reduce the need for conventional communication between site engineers and other staff members representing subcontractors, lead contractors and project owners, etcetera.

“We anticipate the GCC and especially Qatar to be leaders in adopting apps and BIM in the region.” Kai Häkkinen, branch manager, Tekla, Qatar.

phenomenal results everywhere it is applied.” That said, the mobile revolution is yet to penetrate into the actual physical field, particularly in the Gulf Cooperation Council (GCC) worksites where use of mobiles and gadgets for work-related purposes is still rare. Frinault agrees, “The way people perform work in the construction field is one area that has not seen any fundamental advance. One of the key reasons is that projects rarely have a horizon beyond two or three years, making it hard to invest in technology beyond that term.” Giving a snapshot of the current status of technology at construction sites here, Kai Häkkinen, Tekla’s branch manager in Qatar, says, “In the Middle East and Qatar, there is a strong opportunity for the construction sector to adopt the leading technology, especially BIM software that can enhance site coordination.” On the other hand, Gari Nickson, CEO of recently-launched construction app GenieBelt, believes the scope of technology in construction cannot be limited to BIM. “BIM is a lovely word. What is BIM? Ask 10 people and you get 10 different answers. I think BIM is going to be great in 10 to 15 years. For now though, it is only really designers on larger projects that can actually get value from it,” he says, adding that at this stage, what the construction industry really needs is to establish the basics to prepare for the spread of BIM and other advanced software.

Construction apps

A number of apps focused on the construction sector are now available in the market to facilitate project tracking and coordination. With most of them free to download, those which are charged usually show lesser downloads, indicating the target market’s preferences. Between free and paid categories are apps such as GenieBelt which have core features free of charge while users can pay to get access to advanced features. Based on the number of downloads on Google Play Store, some popular construction apps include X Construction Lite, Construction City and Bridge Architect Lite, with a download rate of up to 10 million. One such app is PlanGrid. Built with a focus on field collaboration and communication, the app can annotate and share plans, photos, issues, Request for Information

While BIM is going to be great in 10 to 15 years, Gari Nickson, CEO of GenieBelt, believes that for now, it is only designers on larger projects who can actually get value from it.

(RFIs), documents and reports related to the project. Fieldwire is another constructionfocused mobile collaboration platform aimed to engage field crew members including foremen, superintendents and engineers. Users of this app can view their plans, report and document issues, attach progress photos and follow task completions, etcetera. The idea is to facilitate any site activity that otherwise requires users to walk back to a trailer or track someone down on site. Fieldwire brings together the general contractor

2015 | QCN YEARBOOK | 67

tech & legal

To a great extent, the success of construction apps in Qatar, or anywhere else in the world, depends on the willingness of workers to use gadgets.

and subcontractors on one platform and becomes the central hub to find information on site. Then there is GenieBelt, which provides access to real-time progress reporting from site, relevant documents associated with the correct tasks, comments and questions based on specific tasks, and a list of contact details of people on a project, etcetera. “We provide a platform that allows you to reduce project delivery time, administrative work and reduce conflicts while at the same time increasing collaboration, communication and transparency,” Nickson tells QCN.

Scope of construction apps in Qatar

“Construction is 80 percent craft mixed with 20 percent of collaboration, and apps often focus on the second part.” – Yves Frinault, founder and CEO, Fieldwire.

68 | QCN YEARBOOK | 2015

Ostensibly, the workforce characteristics of the GCC construction sector vary from those of the West in terms of origins, familiarity with gadgets, levels of education and mobile engagement. However, Nickson, who was trained as a quantity surveyor and has worked in the Middle Eastern market of Oman in the past, believes that the construction processes are not too dissimilar to those in the United Kingdom. “We have actually had a very good uptake in the Middle East. Since we launched publicly on November 5, 2014, we have had hundreds of people from the Middle East sign in to the platform, which is really positive,” says Nickson on the region’s collective potential. However, considering the profiles of unskilled field workers in Qatar, one wonders if the use of construction apps will ever go beyond the level of senior staff members on site? Nickson believes, at the moment, it is unrealistic to expect everyone on the ground to report progress on every granular task. What can be a useful starting point, he suggests, is for the users to ask the manager from the subcontracting company or a site manager to report progress on their phone, later moving to advanced handling of such apps. Increasing familiarity of skilled and unskilled construction workers with smart devices can significantly drive mobile app engagement for work purposes on site. With smartphones and gadgets becoming more affordable within Qatar, like anywhere else in the world, one can foresee the technology gap closing between senior and junior workforce in the future. So while it is unrealistic to expect the construction sector to push the mobile revolution, the technological revolution itself will drive the use of smart devices in the construction sector, leading to an evolved professional environment. “Employees are often getting smartphones for themselves before they start using it on the job,” says Frinault. He adds that in the United States, for example, 65 percent of the workers on site now have smartphones, which is a massive trend, enabling the conditions to finally

For technology to penetrate effectively into the construction sector, it must be designed in such a way that it reaches the entire spectrum from carpenter on a project site to the CEOs of the companies, says Ruth Goins, marketing manager, PlanGrid. (Image PlanGrid)

bring technology on site in the way one could not imagine a few years ago. The same is true for Qatar as well, where most migrant workers use mobile phones as a medium of communication with their families back home. “I think the Middle East is following the same pattern right now. As smartphones and tablets continue to become more affordable, they are going to start showing up more and more on site, and carry with them, very cost-effective, powerful and mobile technology,” says Frinault. Looking at the future of mobile app engagement in Qatar’s construction sector, Häkkinen sounds optimistic, saying, “We anticipate the GCC and especially Qatar to be leaders in adopting apps and BIM in the region, thanks to widespread broadband network penetration and rapid uptake of mobile devices.”

Challenges

With increasing pressure to hire growing numbers of migrant workers in order to match the pace of Qatar’s construction boom, it would be unrealistic to expect that every unskilled and even skilled candidate joining the industry would be computer literate. But is it really necessary to be computer literate to use construction apps? Nickson does not think so, saying, “A majority of builders are still not computer literate, but as it turns out, they do know how to update their Facebook status, and more and more of them have a smartphone in their pocket. Therefore, our solution is to leverage smartphones to create a simple, yet powerful communication platform to allow better communication within construction.” If workers can be trained to use construction apps, how much of a role does their level of education play in effective training? Irrespective of the level of education, one can expect increasing familiarity with smart devices in the near future, smoothing the pace of technological penetration. Furthermore, new generation apps are designed to allow easy operability. “The consumerisation of those apps makes them accessible to all public regardless of education,” says Frinault, who adds that as long as owning a smart device is accessible economically for on-ground workers, they will use it, provided that they can read and understand English language. Many of the migrant workers in Qatar’s construction sector, however, may not understand English, as it is not the first language of labourers coming mostly from Asian countries such as India, Bangladesh, Nepal and Pakistan. Häkkinen is of the view that BIM models on mobile apps can fill this linguistic gap in Qatar, as they act as the ‘language’ that most people

feature story

can understand regardless of their level of familiarity with the technology or education level. However, because of these models, the size of the apps may increase to require more sophisticated devices. “Mobile apps for project management are widely available, and are increasingly easy to learn and use. But they require different type of information like building models. As models contain a lot of data, the size of the apps can be quite large,” adds Häkkinen. Frinault points out another challenge, which is the lack of a strong incentive to work better on site. The problem is linked to the very nature of construction practices. “Construction is 80 percent craft mixed with 20 percent of collaboration, and apps often focus on the second part,” he explains, adding, “Some projects can have very inadequate contracts or very confrontational relationships between owners, general contractor and subcontractors. When that happens, people stop having an interest in working efficiently together and it can be a barrier to the usage of apps.” Ultimately, it is the willingness of workers that can catalyse the mobile push in the construction sector. “The major challenge is convincing people to adopt a new way of communicating that, while more efficient in the long run, takes a little bit of time to learn and adjust to,” says Ruth Goins, marketing manager at PlanGrid. From her experience, she says it is usually younger people in the industry who are more receptive to using PlanGrid.

scale projects and augmented reality glasses are two of the main trends that seem to have the most potential for construction.” For now, he thinks, the biggest ongoing trend remains prefabrication, which will be the engine behind successful companies in the decade to come. Eventually, according to Häkkinen, easy-to-use and economic software solutions for site usage are key in defining the way technology shapes the construction industry in the future. “The building data is already there – the region’s construction sector needs to harness it in order to drive innovative and sustainable development,” he adds. For Goins, 3D modeling and BIM will continue to expand into 4D and provide more overall information about a project and its context. “Software to address productivity obstacles will continue to appear and companies will have a suite of applications and programmes that they will use to become more and more productive,” she says, while advising the software companies to head towards providing flexible solutions that do not involve huge commitments from the users. “Technology, while becoming more powerful, will have to become more global and understand that it reaches the entire spectrum of tech-savviness, from the carpenter on a project site to the CEOs of the companies, and value every one of those customers equally,” adds Goins.

Future of technology in construction

With Qatar’s construction industry standing on a par with international markets in terms of technical advancements, it is not unrealistic to expect construction apps to take over field operations in the future. As latest construction software such as BIM becomes part of Doha’s mega projects such as the National Museum of Qatar, the country’s construction sector seems set to adopt more innovative technologies in the future. Asked about some of the latest trends to expect in the sector, Frinault says, “3D building printing on large-

popular construction apps Construction Master Pro Rating

4.8

Downloads 10,000 Snapseed Rating

4.4 Downloads

10 million

Bridge Architect Lite Rating

4.1Downloads

5 million PlanGrid Rating

4.1

Downloads 100,000

While the global construction industry has been advancing with technologies such as BIM, paper-based drawings and documents remain prevalent on the sites of many ongoing projects in Qatar.

“The major challenge is convincing people to adopt a new way of communicating that, while more efficient in the long run, takes a little bit of time to learn and adjust to.” – Ruth Goins, marketing manager, PlanGrid.

Handy Construction Calculator Rating 4.4 Downloads 10,000 Construction Tractor Simulator Rating 3.5 Downloads 1 million X Construction Lite Rating

4.2

Downloads 10 million

AutoCAD 360 Rating

4.1

Downloads 10 million

BimX Rating 4.2 Downloads 100,000 Construction Calculator Rating Construction City 3.8 Downloads Rating 4 100,000 Downloads 5 million

City Construction Simulator 3D Rating 3.3 Downloads 1 million

Construction Simulator 2014 Rating

*Ratings and downloads are based on statistics from Google Play Store

4.3

Downloads 100,000

2015 | QCN YEARBOOK | 69

tech & legal

BIM: SHAPING THE FUTURE OF QATAR CONSTRUCTION Despite the skillset constraints, Qatarâ&#x20AC;&#x2122;s current Building Information Modeling (BIM) standards are comparable to any developed market, but how does the construction sector move up to the next level? Syed Ameen Kader finds out.

70 | QCN YEARBOOK | 2015

feature story

In the absence of legacy baggage, Qatari companies, which are relatively new in comparison to the developed markets such as the United Kingdom and United States, can take a fresh approach to adopt BIM.

Why Qatar started adopting building information modeling (BIM) for its construction projects is perhaps self evident. The construction sector has seen fast transformation in the last few years. While Qatar – on its way to build the country for the future – kept on executing ambitious projects, it also made sure that the sector remains receptive to new ideas, technologies and solutions that came its way to build faster and better. Today, almost every large construction project uses BIM for some element or another, throughout the building lifecycle – be it planning, designing, engineering and construction or operations, management and maintenance. The question now is how can Qatar’s construction sector make the best use of the latest developments in the BIM space and leverage upon its full potential. Implementation of BIM in many modern projects in Qatar is indeed a major evolution for the sector considering the fact that it does not have a long legacy of technologies in construction. The industry has been constrained by issues relating to shortage of skilled manpower, and the disparity in skillset and level of educated workforce available to it. In spite of that, Qatar’s construction sector has come a long way in terms of BIM adoption. But where does the country move now from here?

Lack of standardisation

The use of BIM is expected to increase due to a surge in mega projects such as the Qatar Foundation Stadium which is due to be completed in 2018.

With Qatar witnessing its ongoing construction boom, the country has to adopt a national approach towards developing BIM standards. A variety of international standards are available worldwide, and are used by different countries. In the Middle East, however, at present, there are no fixed BIM standards being followed, with companies taking international standards as

2015 | QCN YEARBOOK | 71

tech & legal

The level two is a process in which separate disciplines create their own models, but all project data is shared electronically in a common environment.

“The readiness of the supply chain (designers and contractors) right now is one of the greatest obstacles. International consultants and contractors have small teams, but are reaching their limits,” says Christoph Weber, managing director of Hochtief ViCon Qatar.

72 | QCN YEARBOOK | 2015

a guideline, or taking bits and pieces from those to tailormake what suits them the best. That said, if one wants to draw a comparison, Qatar’s BIM standards are in line with UniFormat – a commonly used BIM process in the United States (US) and Canada; or the level three that is followed in the United Kingdom (UK). Christoph Weber, managing director of Hochtief ViCon Qatar, says, right now, all major projects in Qatar demand some level of BIM of the designer and contractor. “Quite often these are very high levels, even in international comparison. Some developers in the region even mandate BIM levels to contractors, which are very close to what is called ‘Level Three BIM’ in the UK,” says Weber. However, the practice of mandating BIM is primarily driven by private sector, and not followed across the board. So Qatar has still some distance to go in terms of adopting the level three in depth. It has to overcome a number of technological hurdles first. “The readiness of the supply chain (designers and contractors) right now is one of the greatest obstacles. International consultants and contractors have small teams, but are reaching their limits,” Weber says, adding that most, though not all, regional and local players are slowly catching up, with a rare few of them being quite advanced. In simple terms, level three is basically a fully open and integrated process where models can be shared among the project team members on a web-enabled BIM hub. However, developed countries are now looking to upgrade their BIM standards. The UK, for instance, is targeting to achieve the level two by 2016. The level two is a process in which separate disciplines create their own models, but all project data is shared electronically in a common environment. This is a bit complex but offers more freedom and diversity. One also has to take into account that the US and the UK have made it compulsory to use BIM in construction projects, while Qatar has not. And rightly so, because the country’s workforce – primarily brought in from both developing and developed countries – does not necessarily have same levels of skillset or education. Making BIM mandatory under a law can hence jeopardise the process of free and smooth BIM adoption. Furthermore, it is difficult to develop any specific standard which is comprehensive enough to cover all complexities in a project. A standard for Qatar’s BIM industry needs to be an open, diverse and evolving process.

No legacy baggage

Interestingly, Qatar has the advantage of being a young and developing construction market. In the absence of legacy baggage, Qatari companies can take a fresh approach to adopting BIM. This allows them to try out new solutions and implement advanced BIM systems right from the start. They also do not have to worry too much about integrating old systems with the new ones. Often, for companies, it is a challenging task to migrate from one system to another or integrate the two. That is not the case with Qatar, providing breathing space for international designers and architects to introduce innovative solutions. “BIM has arrived in Qatar with the involvement of professionals from the global design and construction firms,” says Allen Jay Holland, BIM manager, design division, KEO International Consultants. He explains BIM is essential for the delivery of today’s complex construction projects. “It provides a virtual prototype through which the design may be refined and improved prior to the actual commencement of construction. BIM is also a valuable tool for the builder’s use during construction, and at the completion of construction, an ‘as-built’ BIM may be used by the owner or operator for facility operations and maintenance activities,” Holland adds. Bentley’s sales director, project delivery, EMEA and Turkey, Andy Glyde, says, “By insisting on the use of BIM right from the planning stage, the project owner can ensure that the information generated is mobile and can be readily shared across disciplines as the project moves from one phase to another.” He says that in the case of many rail and road projects in Qatar and the extensive construction efforts associated with the country’s hosting of the mega event, the spotlight is sharply on ways to complete all major projects on time and within budget, but without compromising health, safety, and environmental best practices. “Then there are the remaining challenges associated with the adoption of BIM. Today, the requirement for BIM is being written into contracts more and more, and the take up has been extraordinary. But the need continues in Qatar

feature story

Bentley’s sales director, project delivery, EMEA and Turkey, Andy Glyde, says, “Today, the requirement for BIM is being written into contracts more and more, and the take-up has been extraordinary. But the need continues in Qatar for real education in BIM best practices.”

Qatar follows a BIM standard that is in line with UniFormat – a commonly used BIM process in the United States and Canada; or the level three, followed in the United Kingdom.

for real education in BIM best practices,” explains Glyde. According to him, there is a plenty of BIM technologies in the market, but BIM is not just about a product or a fancy 3D model. Rather, it is about improved workflows and processes that centre on sharing enriched information throughout the lifespan of the infrastructure. “Hence, the focus needs to be on how we can most effectively and efficiently use people and processes to not only create infrastructure, but also maintain it for many years to come,” Glyde emphasises.

Skillset development

BIM simulation of a traffic junction linked to Vissum model. (Image ViCon)

While much of the focus is currently directed to 2022 World Cup related projects, foreign construction companies working here appear to have adopted a short-term approach to the manpower issue. Generally, the workforce is hired on a project basis from different countries and then given short induction or training before being sent to worksites. Barring some local and foreign companies, new entrants are not seen to be adopting any long-term strategy to develop skills of their workforce. Louay Dahmash, head of Middle East, Autodesk, says, “Qatar is probably early on the BIM adoption curve.

Louay Dahmash, head of Middle East, Autodesk, says, “There will definitely be a significant demand for a number of highlyskilled BIM engineers in the years to come, especially with fastimproving projects with pressing deadlines. There definitely has to be the commitment to train local talent and make them BIM enabled.”

There will definitely be a significant demand for a number of highly-skilled BIM engineers in the years to come, especially with fast-improving projects with pressing deadlines. There definitely has to be the commitment to train local talent and make them BIM enabled.” He reveals this is not a long-drawn process as it takes generally few months for trained manpower to pick up the pace on BIM solutions and tools.

On the right path

Dahmash believes that Qatar has the resources to not only attract and develop BIM talent but also become a centre of excellence in the region when it comes to creating a modern construction industry based on BIM. “We definitely see Qatar becoming a hotbed for well-trained BIM engineers in the long term because of the amount of skilled work that will need to be done over the next 10 years,” he adds. The trend has already started with a few private entities and government institutes taking initiatives to train and develop a skilled workforce. Hochtief ViCon Qatar, for example, offers training and certification programmes for BIM managers on projects it is involved in. The company also jointly organises the BIM User Days, a nonprofit series in partnership with the Qatar University and the Teeside University. “This event series has been an invaluable opportunity to bring together regional experts and interested parties from all areas of the industry, and to increasingly involve students and young professionals to be prepared for the growing demand in Qatar and the Gulf,” says Weber, whose company works as a software neutral consultant and has been part of many construction projects including the Lusail City for years. Industry professionals in Qatar are also engaging themselves on various forums and social media platforms to share their knowledge and experience. Doha BIM Users Group is one such community on LinkedIn, which was created by Holland last year, and already has a base of close to 450 members. With the industry coming together to play an active role in developing and promoting BIM best practices, it is only a matter of time for Qatar to become a regional leader in this space.

2015 | QCN YEARBOOK | 73

advertorial feature story

GEt YOuR BusinEss mOvinG intO thE fAst lAnE with hYundAi COmmERCiAl vEhiClEs Hyundai Tractor Heads for Heavy Duty Applications

yundai has fast emerged as a global truck maker with a design philosophy that emphasizes three factors: top performance, reliability and economy. Hyundai’s unique ability to combine these three factors is what sets Hyundai apart from other contemporary brands. Today, Hyundai Motor Company enjoys a global reputation as a high quality manufacturer uniquely capable of combining efficient manufacturing technology with a strict design to cost philosophy. In a world where time is money, Hyundai trucks are built to run reliably and economically, working around the clock to carry maximum payloads often under extreme road conditions. They’re built touch to minimize down time and reduce your fixed costs. National Car Company, the sole distributor for Hyundai Commercial Vehicles (Trucks & Busses) in Qatar, has a well-established sales and aftersales network catering the needs of an ever growing customer base in various business segments such as construction, oil industry, transportation, and food industry among others. The Hyundai HD series bring a new dynamism and capability to the light and medium duty trucks. Tough and stylish, comfortable and dependable, the HD series offers the perfect vehicle for the demand of the trucking business. Capability and Convenience The Hyundai HD series offer one of the safest and most ergonomic cabs available. It is not just comfortable, it works with the driver. For example, the curved instrument and switch panel layout means less reaching and more instinctive control. Minor controls, cab access, door and grab handles are optimally positioned, and there are ample interior illumination and stowage space. When it comes to driver comfort and convenience Hyundai is always right out there at the forefront. Power and Reliability The advance & continuously upgraded Hyundai diesel engines deliver the powerful performance, combined with exceptional reliability and durability, which makes Hyundai trucks so appealing. More Perfect, More Secure on the Job The Hyundai HD series trucks are developed for perfect safety. Driving a Hyundai is driving with Peace of Mind. Safety begins with an impressively durable and strong frame. That serves as the foundation for an all-steel suspension system and excellent ride and handling qualities. For superlative stopping power, Hyundai offers a full air braking system supplemented by an exhaust brake. ABS with Anti-Slip Regulator and front / rear auto brake adjusters can be ordered as options. For your security and peace of mind, the fuel filler cap is fitted with a lock and sliding lock cover.

74 | QCN YEARBOOK | 2015

Outstanding Performance The new HD450L, HD600L tractors & HD370 Chassis are the right choice for customer’s needs of low fuel consumption, high payload and maximum vehicle availability. Extended wheel base The new HD450L, HD600L tractors boast a longer wheel base to reduce interference between cab and trailer when cornering as well as applying to various types of trailers, reflecting local customers’ needs The Workplace, as Your Home The ergonomically designed driver’s space on the Hyundai Heavy Duty Truck harmoniously combines functionality with efficiency. The steering wheel with tilting function, well-positioned overhead console and climate control switches are provided for easy to drive. From the wraparound instrument panel and power windows to the central door lock system and numerous storage bins, every feature in the cabin works to relieve the stress and strain of daily driving.

County Bus - A Coach with a Passion for Travel The Bus of the Future is now here. It’s the County which offers a seating capacity up to 30. The smooth outer shell with its flush panoramic windows is Futuristic and unique. The County styling beautifully harmonizes with its practical personality and the rounded edges and flush fitting surfaces contribute to a clean, simple image. Its dimensions are small but where looks are concerned it numbers among the greats. And it offers maximum comfort for your passengers. Further, practical and functional outside mirrors ensure excellent all-round vision. In short, County is impressive in every respect. Aero City for More Capacity The New Super Aero City simply radiates a sense of solidness. With a capacity ranging from 45 to 60, Its occupant can be in no doubt whatsoever that they are in the safest of hands. Its secret : the truss type structure. So, centre frame is improved flexural and torsional rigidity than frame type structure. And the sturdy body, organized with one-piece type roof bows and enforced roof corner panel, provide extra stability and a wide range of safety factors both active and passive - ensures the best possible protection for all occupants.

For more information, log on to www.hyundai-qatar.com

industry insights

Qatari courts process can often be confusing for international counterparties James Bremen, partner in Herbert Smith Freehills’ Doha office, says it would be reasonable to assume a verdict in Qatar could take up to two years to be reached.

With 10 years-plus experience in construction law, James Bremen, partner at Herbert Smith Freehills’ Doha office, speaks about the legal environment in Qatar’s construction industry. Being one of the largest law firms 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? 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 in which they are working.

What are some of the common legal disputes you have seen in Qatar’s construction industry? 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 of the measures you suggest to mitigate 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, and this creates uncertainty and is a sure means for disagreement.

These areas ought to be 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 fullyenforceable contract, and to then manage that in an open, transparent and collaborative manner.

What are some of the legal repercussions for parties involved in the projects facing 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.

2015 | QCN YEARBOOK | 75

tech & legal What do you think are the major reasons behind project delays in Qatar? There are a number of issues around delays. Three leading causes include the following: Sometimes, employers have unrealistic programmes which contractors do not challenge at the time of contracting but plan to attack as soon as they are on site. Allocation of risks under some contracts place risks on some contractors which they cannot manage and so these risks cause disputes. 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 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 the time of contracting. Two key areas of contractor concern in Qatar presently are availability of materials (the Hamad Port is being constructed to ease pressure on the existing facilities) and also contractor’s exposure to risks arising from permitting and government agency interfaces.

76 | QCN YEARBOOK | 2015

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 up 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 (JV) 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.” – James Bremen, partner, Herbert Smith Freehills, Doha.

According to James Bremen, disputes in Qatar can be mitigated by negotiating a clear, complete and fullyenforceable contract, and to manage that in an open, transparent and collaborative manner.

tech & legal

Qatari legislation related to construction in 2014: A retrospective Dr. Minas Khatchadourian of the Qatar International Center for Conciliation and Arbitration discusses some important rules and provisions related to the construction industry as published in the Qatari Official Gazette during 2014. Amendments

The Law No. (2) of 2014 (the new law) amends certain articles of Law No. 19 of 2005 (the old law) on the Exercise of Engineering Professions, which applies to licensing of engineers and architects working in Qatar. Under the new law, the Ministry of Municipality and Urban Planning (MMUP) has replaced the previous Planning and Building Development General Authority, and accordingly the Minister of Municipality and Urban Planning became the competent minister receiving the authority to govern the engineering profession. The Committee of Engineers and engineering consultancy firmsâ&#x20AC;&#x2122; acceptance and classification has received some minor amendments. The chairperson and his deputy shall be appointed by the MMUP. The committee shall be composed of 11 members where a member from Qatar University and a member from the Ministry of Interior have been added (Article 2). Under the old law, licences to practise engineering professions were for two years (Article 11), whereas the new law differentiates between the engineers and architects on one hand, and the engineering consultancy firms on the other. The engineers shall enjoy a licence valid for three years instead of two, whereas licences for engineering consultancy firms remain valid for two years. The new law makes it clear that foreign branches of international engineering consultancy firms may be exempted from the application of its provisions if they have been entrusted by the State for engineering works of special technical nature for the public interest use. Fines have been either added or increased under the new law for any violations related to the non-renewal of the practising licence on time (Article 11), or related to the penalties imposed in case of infringement of the law (Articles 27 and 33). For example, if a licence lapses, engineers shall be fined QAR1000 and engineering consultancy firms shall be fined

78 | QCN YEARBOOK | 2015

QAR10,000 per month of delay up to three months. Any delay lasting more than three months will result in de-registration. Also, the fine for practising in the engineering profession without obtaining a licence has increased from QAR50,000 to QAR100,000 under the new law.

New real estate development law

The Qatari legislator has introduced a very important piece of legislation by the Law No. 6 of 2014 regulating Real Estate Development. The Law focuses on four key areas: (a) licensing for developers; (b) financial protections for purchasers; (c) regulatory approval for off-plan sales; and (d) property registration. Real estate development cannot be undertaken unless the developer has the appropriate licence issued by the Ministry of Economy and Trade. Licences are granted to the developers for three years and can be renewed for a further period. Licensed developers will be included on a real estate developersâ&#x20AC;&#x2122; register to be established at the ministry. Development must commence within six months of the developer receiving approval from the ministry for off-plan sales and the developer is required to submit progress reports. In order to protect prospective purchasers for off-plan properties, a related escrow account should be opened to ensure that advance payments and instalments paid into the account are used solely for the purpose of the development. Payments out of the account will also be restricted and will not be permitted until it is 20 percent complete. As for the registration of the properties sold off-plan, the Law No. 6 of 2014 provides for the establishment of an Interim Real Estate Register. Interim title deeds will be issued for each registered unit. The Ministry of Economy and Trade will establish a Real Estate Dispute Resolution Committee to hear disputes arising from the Real Estate Development Law and from the real estate sector.

Conformity certificate for building products

Within the plan for preparing a set of standards for Qatar Construction Specifications (QCS) 2014, the Minister of Environment has issued Decree No. 192 of 2013 and published in 2014 relative to the certificate of conformity for technical requirements in the field of the Qatari construction and building products. The said decree indicates that any organisation working in Qatar in the production of construction or building material is eligible to apply for obtaining a certificate of conformity upon the fulfilment of specific conditions (Article 2). In particular, the applicant organisation should possess an independent quality control department as well as a laboratory to operate the quality tests and to be available for any control measures undertaken by the Ministry of Environmentâ&#x20AC;&#x2122;s official inspectors. A preliminary inspection shall take place first in order to collect and analyse a sample of both the raw material and the final product. A report shall be prepared in the light of the result which is followed by a plan agreed upon for a continuous quality control on the said product(s). Finally, the certificate of conformity shall be issued. Its validity shall be for one year subject to renewal. It is noteworthy that QCS 2014 sets the standards for building materials and construction safety in Qatar. The standards are binding on all private and public buildings and construction processes.

Dr. Minas Khatchadourian is the director of the Qatar International Center for Conciliation and Arbitration. He is a member of the Chartered Institute of Arbitrators, and the International Chamber of Commerce Qatar Arbitration Commission.

With the ongoing construction boom, Qatarâ&#x20AC;&#x2122;s heavy equipment market has been witnessing a surge in demand. Other resources crucial to the countryâ&#x20AC;&#x2122;s construction sector include human capital with the right skills, and ample project finances to avoid delays.

Resources& equipment 82

Human resources

Construction costs

heavy equipment

93 97 100

industry insights: scania trucks industry insights: Alutec Construction skills

resources & equipment

Building a different future: Giving national character to Qatar’s construction industry With labour scarcity at home and heightened competition from other nations in the Gulf which have ambitious projects underway, relying heavily on foreign labour is not a sustainable strategy for Qatar. David Jones, founder and managing director of HR thinktank The Talent Enterprise, explains why the future construction scene of the country will see a high number of nationals involved, both in the public and the private sectors.

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.

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

82 | QCN YEARBOOK | 2015

In the far future, will we look at the physical infrastructure of the city, like we do at the pyramids today, and wonder how and why such monumental structures were raised from the desert? More importantly, will we have a different 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 industry’s talent landscape, however, is static, sclerotic and anachronistic by comparison. The pattern of traditional employment, people and productivity practices have remained durable throughout this period of growth – this will not be the case in the next 10 years and beyond. With new major transport infrastructure in delivery and the major preparation for 2022 looming, Qatar’s construction industry will no doubt expand at an even faster rate in the next 10 years than it did in the last. This means that employment opportunities within the industry, at all levels, will also continue to increase. Nonetheless, it is unlikely this will lead to a massive expansion 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 these will be vulnerable to unwarranted risks in their living and working conditions, as well as how they are recruited from their home countries and how they can be manipulated by unscrupulous employers, agents and peers. In many ways, construction and infrastructure development represents greater potential risks rather than potential benefits for the perceived legacy of large projects, such as the 2022 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.

column

Qatar’s labour market will be significantly impacted by technological changes in the long term.

Increasing national employment within the construction industry is the smart thing to do, whether in terms of strengthening bids for government contracts or sustaining productivity.

With Qatar’s construction sector heavily dependent on expatriates, visibility of local labour in the development and delivery of the 2022 World Cup will be a top priority for Qatar. (Image Corbis)

With only about 90 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 and knee-jerk reactions to future potential incidents delivery deadlines. By providing and regulating a structured mechanism for representation and resolution, perhaps moving towards a labour framework similar to that of Oman, for both Qatari nationals and expatriates, would provide 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 will be a top priority. Whether in the delivery of the new airport, metro or the World Cup itself, all will seek to accelerate the growth in focus on promoting Qatari employment in the private sector, even in construction and infrastructure development, where Qataris are currently woefully under-represented. A sense of achievement in having delivered a major project such as the World Cup and welcomed and hosted hundreds of thousands of business, sporting and cultural

leaders, will be a source of national pride for generations to come. Our research at The Talent Enterprise into what drives high-performing Qataris in the private sector today indicates that national pride is a major motivator for local talent to be attracted and retained within the private sector growth industries, including construction. Arabtec announced its intention to hire 10,000 nationals from across the Gulf Cooperation Council, and this has shifted the debate about increasing national employment within the industry from simply the ‘right’ thing to do from a purely Corporate Social Responsibility perspective, to 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 lots of 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. While it may seem slightly fantastical, the impact of robotics is already affecting labour markets in Doha in other industries – whether baggage handling at Hamad International Airport, logistics at DHL or jockeys at the camel race track, the limitless elastic labour supply and lack of need for increasingly expensive and controversial expatriate labour is compelling. 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, project and resource management to mention a few, all of which are potentially far more attractive to growing numbers of 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 long-term 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 Gulf Cooperation Council for the rest of the 21st century.

David Jones is the managing director of The Talent Enterprise. He has worked for over 24 years spanning consulting and line HR in Europe and the Middle East. He is the co-author of the best-selling book Unlocking the Paradox of Plenty – A Review of the Talent Landscape in the GCC.

2015 | QCN YEARBOOK | 83

resources & equipment

With extensive experience across the Middle East, Terry Tommason leads EC Harris’ major programmes and projects across Qatar and the Gulf Cooperation Council.

Rising costs: Causes and repercussions of Qatar’s construction inflation

In a recent report reviewing construction costs across the world, Qatar has again emerged as the most expensive country in the Middle East and North Africa. What are the factors leading to increasing construction inflation in Qatar, and what are their repercussions? What are the roles of oil price dip and the 2022 World Cup in driving Qatar’s construction inflation today and into the future? In an exclusive interview with QCN’s Farwa Zahra, Terry Tommason, general manager at EC Harris – an Arcadis company – in Qatar and director for the buildings sector across the Middle East, answers these questions. In January, the global built asset consultancy firm EC Harris announced its latest construction cost report. Titled International Construction Costs Report: What will it mean for 2015? the report analysed 43 key construction markets in terms of costs. In this context, Switzerland and Denmark have emerged as the most expensive markets, while India takes the last slot, indicated as the cheapest country for construction. Overall, Qatar takes up the 17th place in the list. The country also emerged as the most expensive market within the Gulf Cooperation Council (GCC) and the wider Middle East and North Africa (MENA) region. Just above Saudi Arabia is the United Arab Emirates (UAE), two slots below Qatar, at 19th. In the Arcadis 2012 report Qatar: Avoiding the Inflation Bubble, it was forecasted that Qatar’s construction inflation could reach 18 percent between 2016 and 2019. However, in a more recent study titled Second Global Infrastructure Investment Index 2014, Arcadis’ analysts have expressed a possibility of construction inflation rate reaching up to 20 percent during the same period. On the expected level of construction inflation within 2015, Terry Tommason, general manager at EC Harris Qatar and director of buildings sector in the Middle East, indicates a rate between eight and nine percent. “According to our EC Harris reports, we forecasted that at peak levels of activity, and without appropriate mitigating actions, there is a risk that inflation over the period of 2016 to 2019 could reach 18 percent per annum, but in 2015, Qatar construction inflation is forecasted to reach eight to nine percent. This could, however, be

84 | QCN YEARBOOK | 2015

suppressed by the price of oil and the ongoing spending reviews depending on how long it takes for the volatility to stabilise.”

Causes

Qatar’s ranking as the most expensive country for construction in the region is not a new phenomenon. In fact, the country has held this regional position since 2013. Speaking about some key reasons behind this trend, Tommason says, “Qatar is a small country relative to its planned expenditure on built assets. It has the need to import much of its materials and labour, and is constrained from a logistics perspective,” adding that in general, GCC countries such as Qatar have historically been massively challenged by peaks in construction activity as a consequence of bottlenecks in accessing materials and labour. However, the issue, according to Tommason, is now exacerbated by the recovery in the UAE market and Saudi Arabia’s aggressive social infrastructure aspirations. “Global demand for the best resources and base construction materials is also increasing and serves as a reminder that Qatar is not alone in its challenge to deliver large and complex programmes of work,” he says. Arguably, Doha’s old port’s limited capacity is often considered as one of the sources of escalating costs, by creating supply chain bottlenecks leading to project delays and postponement costs. Tommason believes that the new Doha port’s development in south of Doha and north of Al Wakrah is a crucial infrastructure project that will help to address the current inbound logistics issues for bulk materials and containerisation.

feature story

“Once planned capacity comes on stream in 2016,” says Tommason, “the flow of essential construction materials will become less susceptible to delay and demurrage costs as well as alleviating pressure on the existing and congested Doha Commercial Port and MIC Port.” However, Tommason continues that even if the new port is commissioned on schedule, the planned rate of construction expansion still outstrips the capacity of the port during the predicted peaks of demand. Unless measures such as the use of temporary jetties or alternative access via Ras Laffan or Ruwais are implemented, bottlenecks with the inbound logistics on all the existing entry points will still be a cause of cost and delay.

Repercussions

Emanating from varied causes, Qatar’s ongoing construction inflation is bound to affect a number of stakeholders. When asked about aspects most affected by cost escalation, Tommason says, “The biggest impact on construction cost in Qatar and the Gulf is derived from the cost of the materials which are dependent on the prices of the commodities (such as metals) that make up this quantum. Labour, while less significant, is an important component and the ability to get skilled labour into the Middle East will continue to face big challenges.”

Qatar National Vision 2030 requires unprecedented investment across all market sectors that has fuelled the inflation challenge for the country, says Terry Tommason of EC Harris.

the challenges will potentially reflect on the progress of the ongoing projects, particularly those linked to oil and gas companies already facing cost cutting amid falling oil prices in the international market. Tommason says, “The highest risk will be the overlap between a number of large-scale and essential programmes, all of which will be required to fulfil the 2022 World Cup facilities and infrastructure requirements, creating a peak in construction activity over the next two to three years. As this activity is dependent upon the capacity

Doha Metro is one of Qatar’s key mega projects that will also provide necessary transport infrastructure for the 2022 World Cup and beyond. Pictured here is a site of Doha Metro near Sports Roundabout. (Image Avi Viljoen/Flickr)

Effects on contractors: For key stakeholders such as contractors and subcontractors, the principal impact will be the constraints it places around their own supply chains, according to Tommason. “Securing resources and materials with a view to locking them down for the construction duration against a fixed price will not be for the faint hearted,” he says, explaining that competition for resources and materials will be intense and contractors are unlikely to bear the burden of the risk as they have done to date. The trend will drive changes in how clients currently select and engage contractors since the likelihood is that contractors will either nobid or heavily risk-price their tenders as the market warms. “Successful contractor engagement by clients is therefore crucial to ensuring that Qatar is ready for 2022 and will require a quantum leap in trust and approach from all parties concerned,” adds Tommason. Effects on investors: According to Arcadis’ Second Global Infrastructure Investment Index 2014, Qatar is the second most attractive country for infrastructure investment after Singapore. However, with construction becoming more expensive, will there be a shift in investor sentiment over the coming years? Tommason believes that overseas investors have historically been cautious of Qatar and the GCC due to opaque market conditions and real estate laws and regulations. “The inflation challenge in Qatar will unquestionably compound as we near the 2022 World Cup, and we expect that most investors will be keen to mitigate their exposure by forward planning around their supply chain and starting their projects sooner rather than later,” says Tommason advising the investors to choose their targets very diligently during these years ahead and to have a clear route of entry and exit with a robust risk plan. Effects on projects: While the risks of construction inflation are there for key stakeholders, ultimately,

2015 | QCN YEARBOOK | 85

resources & equipment

“The inflation challenge in Qatar will unquestionably compound as we near the 2022 World Cup.” – Terry Tommason, general manager, EC Harris, Qatar.

of local supply chains, there is a real risk of the market’s failure to supply.” Further programme smoothing at a national level through the prioritisation and deferment of work should be considered to mitigate this, he adds.

Oil price dip and Qatar’s construction inflation

According to the latest Business Optimism Index-Qatar, the country’s construction sector showed the highest ranking among non-hydrcarbon sectors. But with hydrocarbon resources driving a large part of Qatar’s economy, can the construction sector stand independent of the oil and gas sector? And, is there any significant relationship between the ongoing dip in oil prices and Qatar’s construction inflation? On the future trending of the oil price in the region and the impact that any protracted volatility will have on the market, Tommason says, “Currently we are witnessing increased levels of concern from many clients across the region particularly within the public sector where funding is tuned into oil and gas revenues. We have examples of projects being deferred and in some cases being cancelled. If this trend continues, it will reduce the demand for resources and materials in the region, which will to some degree suppress the rate of construction cost inflation for a limited period.” Nonetheless, in the case of Qatar, he believes this impact is more likely to be short-termed as the 2022 World Cup deadline is immovable with major projects that are critical to the tournament. “This is not just about stadiums, it is about delivering some of the largest infrastructure and building projects in the

Qatar is actively trying to cut down the amount of imported building materials by establishing its own manufacturing facilities. (Image Arabian Eye)

Qatar is heavily dependent on imported construction materials. (Image Arabian Eye)

86 | QCN YEARBOOK | 2015

feature story

world to facilitate the greatest show on earth. Hence, I’m afraid the challenge of inflation is not going to disappear anytime soon in Qatar although it may take slightly longer to bite deep,” explains Tommason, adding that despite no chance of substantial effects, “investors will be inevitably cautious around the regional market due to the oil price projections until such time as the situation stabilises.” The oil price dip can potentially impact project financing. According to Tommason, in Qatar, much of the capital sourced for government programmes is leveraged from oil and gas revenues and governmentbacked banks but private developers typically leverage debt from the financial sectors. Hence, the risks in this regard can become extremely volatile and increase exponentially in markets that are heating up and becoming unpredictable. “If the oil price remains low for the first half of this year, the probability will be that the private sector will be called upon to take a more active role in the financing and delivery of these major projects across the Middle East, moving into 2016 and beyond,” says Tommason.

“The biggest impact on construction cost in Qatar and the Gulf is derived from the cost of the materials.”

Qatar’s future trends linked to construction inflation Qatar’s construction inflation likely to reach up to 20 percent between

Construction cost projections

More factors in the future are going to compound Qatar’s construction inflation. With Dubai Expo 2020 and a number of infrastructure projects underway across the region, the growing pressure to procure and retain labour force will drive the rate of construction inflation. Stated differently, if skilled labour needs to be hired and retained, the sector will inevitably require a competitive edge over other regional markets. This competitive edge may take the form of higher salary, improved accommodation and more perks attached to the overall package. Explaining this phenomenon, Tommason says, “Qatar is in competition with other mega programmes within the region and across the world. Worker health, safety and welfare issues will increasingly be under scrutiny as the spotlight of the World Cup increases and as improvements are made, this should help to attract and retain workers.” Elaborating on the effects of the initiatives on construction inflation, he continues, “While the investment in significant improvements to working conditions is welcome, this will also be a factor in driving construction costs.” Since a significant part of Doha’s ongoing construction activities come as a result of Qatar’s winning bid for the 2022 World Cup, speculations about slowed-down construction post-2022 suggest changes in the cost of construction here. In contrast to the common viewpoint that the World Cup is a major influencer behind increasing construction costs, Tommason says, “The World Cup is not necessarily the primary driver for construction cost inflation i‎n Qatar. The challenges were comparable in the lead-up to the 2006 Asian Games in Doha and subsequent real estate boom. The 2030 vision for Qatar has required unprecedented investment across all market sectors and has fuelled the inflation challenge.” “As Qatar relentlessly strives towards completing its 2030 Vision, I would anticipate the country to continue to face inflation challenges in the years ahead as it invests heavily in construction projects that develop its infrastructure for future generations post-2022. This is the beginning of that journey and certainly not the end,” Tommason concludes.

Possible cancellation of projects backed by the oil

and gas sector due to the ongoing dip in oil prices

2016 and 2019.

Increased role of private sector in case of a

continued dip in oil prices Increased competition for material procurement,

leading to a rise in international prices Improved facilities for labour, increasing

the overall construction costs

Contractors’ preference for no-bid or heavily riskpriced tenders

Clients’ preference

for turnkey contractors

Stiffened competition for labour leading to increased cost to

hire and retain skilled labour Immovable deadline for the 2022 World Cup

to contribute towards construction inflation Contractors to secure materials by locking them at a fixed

price over the project’s duration Construction expansion likely to outstrip the capacity of the new port during

the predicted peaks of demand

Increased chances of delays in projects due to the above reasons

2015 | QCN YEARBOOK | 87

resources & equipment

QATAR’s PMV SECTOR GEARING UP FOR

THE CHALLENGE

As the country’s construction sector intensifies its activities to meet the timelines relating to mega events, PMV players say they are equipped to meet the surge in demand. Amidst all the talks of how manpower and building materials are going to be the key to achieving timely completion of many of the country’s ambitious construction projects, one more element that is equally critical but often escapes the media hype is the availability of equipment and machinery. That’s perhaps because the country’s PMV (plant, machinery and vehicle) sector has so far managed to take up the challenge head-on. There might have been a few instances of hiccups or delays in procuring some of the critical equipment for construction projects, but in general, Qatar has not lagged behind when it comes to the availablility of the latest technology and equipment. Ask any major PMV supplier and they will tell you how the sector has been at the forefront to play an important role in realising Qatar’s dream – the dream of building a future. “The Qatari market is adapting well to the new technologies, aiming for higher productivity and a clean environment,” says Ayman Ahmed, managing director of Jaidah Heavy Equipment (JHE), a company that has been active in the Qatar market for more than 50 years. Jaidah is one of the biggest dealers in heavy and industrial equipment and commercial vehicles in Qatar. It represents some of the top international brands such as Komatsu Forklifts, Bobcat and Doosan Infracore, among others. Understanding the needs of the local market, Jaidah has introduced many of the latest industry products, such as the Komtrax GPS system on Komatsu machines, the new Bobcat S450 skid-steer loaders with cutting-edge operation technology, and Charington Beach cleaners, to name a few. It is not just about bringing machines from Europe or China and delivering them here, but also about studying the local needs in depth, and looking into the domestic conditions and environment before launching any product in Qatar. While Volvo Trucks, for example, was setting up its shop here some three years ago with its local partner Domasco, it did a lengthy regional study to ensure that the market needs and demands were met in full. “Experts from Sweden together with their counterparts in Qatar conducted local surveys, assessing the specific conditions and requirements. When we started this project, the main concern was to bring the right truck for the extraordinary operation conditions in the local environment,” says Lars Erik Forsbergh, president, Volvo Trucks Middle East.

88 | QCN YEARBOOK | 2015

But companies are also not shying away from introducing advanced solutions and machines that are well adapted in the developed markets such as Europe or America. In order to offer the best solution to Qatar, Volvo has brought in its exclusive I-Shift transmission technology, which is very efficient when maneuvering at low speed. “I-Shift offers smooth, yet swift gear changing, always selecting the right gear. It enables the driver to focus on driving and keeping both hands on the steering wheel,” says Forsbergh, adding that 100 percent of Volvo’s new generation trucks sold in Qatar are fitted with I-Shift. The company says most of the new features of the Volvo FMX trucks that come with I-Shift technology are designed to increase the vehicle’s productivity and durability, something that is very important for customers in this segment. Also, the Volvo FMX trucks sold in Qatar are all 13L engines and Euro III compliant. Another latest solution that the company has made available to Qatar is a web-based Dynafleet telematic system, which allows customers to track their vehicle’s position 24x7, 365 days a year. “This system allows business owners to pinpoint areas challenging profitability while ensuring that their drivers operate in the safest and most efficient possible conditions,” Forsbergh says. Talking about the current trend of the latest products that are entering the Qatari market, industry players say tunneling equipment, which is tailor-made in Europe, is being supplied especially for the Doha Metro project. High technology equipment for hospitals are also being adopted in Qatar’s hospital project specifications.

Competitive market

PMV suppliers from around the world are aware that there is a massive demand for advanced machines and solutions in Qatar’s construction sector. Hence, it is no surprise that major companies are present here, through local partners. This also makes the market more competitive and demanding from a quality and standards point of view. There is an abundance of opportunities but not without a competition. It is a very competitive market because all of the suppliers’ focus is now on Qatar since the demand for heavy equipment in European and Gulf Cooperation Council markets is decreasing.

feature story

PMV suppliers are bullish about the unprecedented growth that Qatarâ&#x20AC;&#x2122;s construction equipment market is witnessing.

2015 | QCN YEARBOOK | 89

resources & equipment

skilled technicians who they heavily invest in, as they are their main assets. Yves Aertssen, director of Gulf Earth Moving (GEM), observes that user convenience such as air-conditioned cabined equipment has altered the market preferences towards different kinds of earthmoving equipment. “This change is happening because of the increased focus on quality, health, safety and environment requirements on all projects,” he adds.

PMV companies are introducing advanced equipment and solutions that are well accepted in developed markets.

High demand

“Trained maintenance personnel also play a pivotal role in executing an effective preventative maintenance programme,” says Chris Hills, service director, Konecranes Middle East FZE.

Global PMV companies understand that there is an abundance of opportunities but not without a competition.

90 | QCN YEARBOOK | 2015

In view of this, business opportunities will be open to the companies who supply the best quality and offer the fastest delivery and after-sales support. Forsbergh points out that all major truck players are present here in Qatar as it is a booming market. “This market is becoming more and more aware of the total cost of ownership. The fleet managers and owners want to make the best out of their trucks and increase their productivity. So productive drivers are becoming more and more important,” he says, adding that they provide tailormade driver training, according to customers’ needs, to make sure that truck usage is optimised. In order to live up to the growing needs for efficient after-sales support for a large population of Volvo trucks, Domasco plans to double its current servicing capacity by adding one more centre later this year. Ahmed of JHE says the competition is very tough in Qatar. “All suppliers want to benefit from the huge development of the country, especially with the high demand now. To differentiate us in this market, Jaidah offers full solutions to its customers, including a wide range of high-quality brands, and after-sales services,” says Ahmed of JHE that supplies products from Isuzu, UD trucks, Palfinger cranes, besides others. Ahmed says it offers different in-house financing facilities, 24x7 service calls to assist, stock availability of machines and parts, and a highly-trained sales team and

PMV suppliers are bullish about the unprecedented growth that Qatar’s construction equipment market is witnessing. And they are ready to capitalise on this. Qatar is a growing market, and within the next five years, industry players say, it will have the second highest demand for heavy equipment after Saudi Arabia. In the last few years, there has been more demand for earth-moving equipment as most of the awarded contracts were infrastructure projects. But from now on, industry insiders suggest, there will be higher demand for equipment that is required for the construction of buildings and towers due to the need to build facilities for the 2022 World Cup. In the future, Forsbergh predicts, Qatar’s truck market will continue to be promising and booming. “We have had double-digit growth in 2014, and we are forecasting the same for 2015. The new range is allowing us to be a key player in a demanding market such as Qatar,” he says. With so much focus on completing projects on time, industry players say, contractors and construction companies will continue to rely more on latest machines and technology – something that is going to drive the demand for the construction equipment sector in a big way. “Due to huge infrastructure projects that are going on in Qatar now, the demand for heavy equipment and trucks will go up, in addition to all the industrial products required to support the construction companies to execute these projects,” says Ahmed. Aertssen of GEM says they are having first-hand experience of the region’s demand for specialist earthmoving equipment such as long-reach excavators, heavy-weight excavators, ground improvement equipment, crushers and screens. “The huge demand for these specialist plant items is there to support both current and prospective projects throughout the Gulf Cooperation Council,” he says. Due to major upcoming events in the GCC, such as the 2022 World Cup and Dubai Expo 2020, and expansions of existing or creation of new refineries in the oil and gas sector, Aertssen says, there will be exponential growth in the demand for large and well-managed earth moving equipment.

Safety practices Against the backdrop of occasional criticism on Qatar’s safety standards in construction, equipment manufacturers are putting in extra effort to make sure their users follow necessary safety practices, and that process often includes providing training to their customers and operators. Forsbergh highlights that over 1.2 million people die each year on the world’s roads. This means around 3500 people a day. “Volvo seeks to prevent accidents before they ever happen by supporting the driver as far as possible. Development is carried out on the basis of how human

feature story

Ayman Ahmed, managing director of Jaidah Heavy Equipment (JHE), says, “Due to huge infrastructure projects that are going on in Qatar now, the demand for heavy equipment and trucks will go up, in addition to all the industrial products required to support the construction companies to execute these projects.”

The Volvo FMX trucks sold in Qatar are all 13L engines and Euro III compliant.

Gulf Earth Moving (GEM) has worked on excavation, soil improvement and revetment works of Doha’s new port. (Image GEM)

Equipment manufactures are putting extra efforts to make sure their users follow all the safety practices.

beings function and react,” he says. In this context, he adds, the design of the driver’s environment is extremely important. “Our cabs are crashtested in the world’s toughest safety tests. Crumple zones, injury-preventive materials inside the cab, three-point seat belts and airbags are some examples of safety measures that protect the driver in the event of a collision,” he explains. Besides proper training, regular inspection and maintenance of equipment is critical to avoid any accidents while using a machine. Several equipment companies also offer training and maintenance as part of a package deal. Konecranes, that recently developed a Crane Reliability Study (CRS), providing a thorough analysis of overhead lifting equipment, says an active and consistent preventive maintenance programme is crucial to improving safety, productivity and lifetime of a crane. “Trained maintenance personnel also play a pivotal role in executing an effective preventive maintenance programme,” says Chris Hills, service director, Konecranes Middle East FZE. Konecranes runs a programme called Crane Operator Training to ensure the safe operation and performance

of cranes. “This is even more important when operating cranes equipped with smart features, for example, a positioning system,” he adds. So how often should an inspection of a crane be done to avoid any accidents? “This very much depends on the crane type, the operation it is working in and how much it is being used,” he says. From a service perspective, he adds, ambient temperature and dust is a challenge for cranes working outside. He highlights, “The role of preventive maintenance in these conditions cannot be emphasised enough.” A positive trend, Hills adds, is an increase in the number of customers coming to them for inspection and maintenance solutions. With opportunities there, the PMV industry faces some challenges in terms of the limited capacity of the existing Doha port, shortage of trained manpower, among others, but it is addressing those issues seriously. With the increasing intensity in Qatar construction industry, the sector has a lot more positives to look at, and it is poised to capitalise on them.

2015 | QCN YEARBOOK | 91

advertorial feature story

Qatar Steel The leading steel brand in the region is participating in the 12th International Construction Technology & Building Materials Exhibition (PROJECT QATAR 2015), which will be taking place at the Qatar National Convention Centre (QNCC), from 4 - 7 May. Qatar Steel Company was formed in 1974 as the first integrated steel plant in the Arabian Gulf. Commercial production commenced in 1978 with the company becoming wholly owned by Industries Qatar in 2003. Today, Qatar Steel is widely recognized as a foremost leader in the steel industry, extending its pioneering commitment from an expansive mill site located in Mesaieed Industrial City in Qatar. Inspired by our vision and strategic goals, we have grown through organic expansions within Qatar and through strategic investments in GCC that include Qatar Steel Company FZE in Dubai, Qatar Metals Coating Company WLL [ Q-Coat] in Qatar and AlSOLB Steel in Saudi Arabia. What are your expectations from the Project Qatar event this year? Mr. Ahmed Al Ansari, Commercial Division Manager of Qatar Steel said “We are delighted to participate as an exhibitor in Project Qatar 2015, which is the largest of its kind to be held in the Middle East. Qatar Steel is keen to consolidate its leadership position in the regional steel map by participating in the event and to achieve the objective.” We expect Project Qatar 2015 will provide us the needed edge as stated below. • The exhibition is expected to provide strong opportunity to build relationship with local trade partners and explore possibility of increasing sales in the local market which has the highest growth • The exhibition also expects to provide excellent platform to showcase “Qatar Steel” brand highlighting the quality of products and services delivered under it. As an exhibitor, what will your offerings be at the event? Using state-of-the-art production technology, Qatar Steel produces Direct Reduction Iron [DRI], Hot Briquetted Iron (HBI), Steel billets and finished steel products namely reinforcing bars, re-bars in coils and wire-rod of different sizes which will be showcased in the event. During its four decades of operations, Qatar Steel has built an outstanding reputation for unrivalled quality, consistency and reliability. Also, any special events that you have planned to attract visitors to your booth? Please elaborate. Qatar Steel’s exhibition stand looks unique while compared to other exhibitor’s stand modeled in old traditional house. The stand design is unique and is expected to draw high appreciation and applause by regional and international visitors. What are your expectations from the conferences that will be held as part of the expo? The conference is expected to open discussion on various business fronts related to demand supply, project complicacies, etc. to name a few.

92 | QCN YEARBOOK | 2015

Also, have you planned any strategies to generate sales from an event of this nature? Introduce us to the same. Qatar Steel’s dedicated and committed work force will be there in service at the stand to cater to the requirements of the guests and understanding the latest trends of the market and changing market situation. Various products and services will be showcased to enlighten the guests. What are the factors that compelled you to participate at the event this year? Qatar being a local and one of the largest markets of reinforcement bars, is the prime attraction point for Qatar Steel to participate. Awarded for innovation in Waste Recycles Qatar Steel was honored as winner in the category of innovative waste recycle / waste management practices in sustainability reporting. The award was presented by H.E Dr. Mohammed Bin Saleh Al-Sada - Minister of Energy & Industry. Qatar Steel received its first award as 1st runners up in 2011 sustainability reporting. The company is working to reduce its environmental impact by investing in cutting-edge technology and improving continuously in efficiency in an effort to extend support to Qatar Steel’s promise of ‘Making Steel Matter’. Project Qatar is the premier platform to showcase our products and image.

industry insights

huge demand for trucks due to projects released by qatar government With over 700 trucks already present in Qatar, Scania is witnessing double-digit growth in demand for its vehicles. Scania has built its reputation in the industry on its superior fuel efficiency, environmentallyfriendly engines, and after-sales service. The company recently sold 12 new 2015 model trucks to Teyseer Building Materials and Transport. Although there is currently no regulation regarding engine specifications, Scania chooses to offer only Euro III engines in Qatar, in an effort to protect the environment while also offering better mileage and fuel efficiency. In an exclusive interview with QCN, Mohamed Aroua, Scania sales manager, Arabian Agencies Company, gives his take on the local truck market. How do you see the current market demand for trucks? We are seeing huge demand for trucks in the market due to the new projects that have been released by the government. Scania presents and provides the right products for those projects in terms of better fuel consumption and after-sales service. Which market segments do you cater to? If we divide our business, we have three different segmentations: one, long haulage, which includes logistics; two, construction which is divided between excavation and transportation of material, and ready mix; and three special-purpose trucks for military, waste management and other applications.

We are active in all three segments, and Scania, during the past two years, has been witnessing a growth in market share due to good after-sales service and product reputation. In a couple of years, we expect being the market leader for at least one of these segments. Talking about 2015 model trucks, what are the new features? Scania is focused more on environmentally-friendly engines. We only use Euro III engines, which generate very low emissions. Second, our customers do not have to worry about the running costs. We have the lowest fuel consumption in the whole truck market, and our fuel consumption is 28 litres per 100 kilometres. That is because of the engine technology. Most of the

Teyseer Building Materials and Transport recently bought 12 new 2015 model Scania trucks, which come with a number of advanced features.

2015 | QCN YEARBOOK | 93

resources & equipment

sharing experience of using Scania trucks Teyseer Building Materials and Transport – part of the Teyseer Group – has five divisions which are mainly into supplying cement, construction steel, timber, shuttering props and paint, rebar fabrication, and regional land transport. Today, the company has a fleet of 160 trucks – all Scania. It recently bought 12 new 2015 Scania trucks. Mohd Jamil Kanwar, general manager of Teyseer Building Materials and Transport, shares more about the company’s transport division and why he prefers Scania trucks. experience with Scania trucks. Second, we are buying Scania because we can have a high degree of customisation. When we place an order, we give our specifications to the manufacturer and they manufacture according to our requirements.

For what purposes do you mainly use Scania trucks? We use them for logistical purposes, mainly to transport cement, chemicals, oil and steel. Our trucks are moving around all over United Arab Emirates, Oman (Muscat and Salalah) and also Saudi Arabia. Though our transport business is not a profit-making centre, it does play an important role in giving good services to our clients. This is one of the main differentiators between our competitors and us. In the construction industry, time is the essence. If the site is short of materials for one day, the loss is substantial.

How is the after-sales service of Scania trucks? The after-sales service is very good and that is why the trucks are on the road. At the same time, we have our own full-fledged workshop. When our trucks go outside the country and in case of a breakdown, everybody knows the engine very well because they have used them for a long time. Additionally, if the spare part is not available, we have spare trucks of the same model whose parts can be fitted into other Scania trucks. You recently bought 12 new 2015 model trucks. Why did you choose Scania again? We are making ourselves ready for more business opportunities on the back of the 2022 World Cup. Things have started moving now and hopefully by the third quarter of 2015, the market will further improve. All the mega projects, which were in the pipeline, are being tendered for now.

Why do you only use Scania trucks? If you go through our record, you will find that we still have older model trucks, and we are using them even today. They are in perfect condition and moving in and out of the country. So to answer your question, I would say, first, we have very good

Do these trucks have latest technologies such as GPS tracking system? Yes, the new truck comes with these features. This also helps us track where the truck is. This is very important for us. In the future, all of the logistics clients will ask whether or not one has them installed in the trucks.

Mohd Jamil Kanwar, general manager of Teyseer Building Materials and Transport, says they are making themselves ready for more business opportunities on the back of the 2022 World Cup.

94 | QCN YEARBOOK | 2015

trucks in the market today have Euro II engines. Another big advantage for our customer is that Scania works with a modular system. That means if you have a different kind of truck, you do not have to worry about the parts because 99 percent of them are compatible with each other. In the 2015 edition, we have a new feature called opti-cruise. It’s a new automatic clutch. What we did was shift 50 percent of the load from the driver to the truck. The only difference between our competitors and us is that we are still using full mechanical manual gearboxes with an automatic clutch. The customer can now save more on fuel, with some saving in the clutch as well. The downtime will also be reduced. Operation and productivity of the truck will be relatively higher compared to the others and this is one of our key strengths. Why have you chosen to offer only Euro III engines in Qatar and not Euro II? At the moment, there is no regulation that makes it mandatory for operators to use only Euro III engines. One can still have Euro II engines, though they are inferior in fuel efficiency and environmental friendliness. In fact, the majority of trucks, let us say 80 percent, in the market today have Euro II engines. Even though Scania still produces Euro II engines for other markets, we, as a policy, do not offer Euro II engines here in Qatar. We really want to bring the government’s attention towards the environment here, and that is why we do not allow any Euro II engine to be fitted on our Scania trucks here. But, pricing wise, is it a jump if one switches from Euro II to Euro III engines? Scania does not really focus on price or profit. We focus more on business continuity. At any time, the government may apply this regulation of Euro III. So what

Mohamed Aroua, Scania sales manager, Arabian Agencies Company, says even though Scania still produces Euro II engines for some other markets, the company, as a policy, does not offer Euro II engines here in Qatar.

industry insights

Mohamed Aroua, Scania sales manager, Arabian Agencies Company along with Mohd Jamil Kanwar, general manager of Teyseer Building Materials and Transport, after handing over the trucks.

about the customer who has already 2015 Euro II engine? What will he do with this engine? It will not pass the traffic inspection. We want our customers to be more relaxed and comfortable with the investment that they are making in Euro III engines, which have a high durability and have a good market reputation.

Enertech HHP QCN YrBk.pdf

4/22/15

9:18 AM

What about the GPS system? Was it there before? We are giving free GPS to our customers. We started this in 2014, and the only reason was to give more solutions to our customers. We want to be partners with our customers, not just a supplier. That’s our philosophy.

2015 | QCN YEARBOOK | 95

advertorial feature story

“SITECO” AND JAIDAH ELECTRICAL TO JOIN HANDS TO LIGHT QATAR’s STREETS, STADIUMS:

NEWS 1

Jaidah Electrical, a subsidiary of Jaidah Group, announced Commencing of sole dealership agreement with Siteco, a subsidiary of Osram, who have over 150 years of experience with lighting, and a renowned manufacturer of technical indoor and outdoor lighting. Under the agreement, Jaidah Electrical will be the sole distributors of Siteco lighting products in Qatar, reinforcing Jaidah Group’s position as one of the most trusted providers of lighting products in Qatar. For over two decades, Jaidah Electrical has been a key contributor in powering the continued development of Qatar, becoming an integral partner in supporting the local commercial sector through

NEWS 2

unrivalled, reliable services and products. Jaidah Electrical Division General Manager Mr. Altug Okay said: “Jaidah Group has a history of long-standing relationships with major international manufacturers, making us perfectly suited for to satisfying the high demand for lighting products related to Qatar’s infrastructure development. Our agreement with Siteco will reap rich returns for both parties and enhance our efforts to facilitate further growth in Qatar’s lighting business sector especially for street and stadium lighting and looking forward to having a positive impact on the Qatar’s growth by delivering high quality products”.

OSRAM TRAINING FOR FRONTLINE STAFF:

Jaidah Electrical, along with Osram ME conducted a one day training program for the frontline staff working with their wholesale distributors, retail distributors and major customers in the lighting sector. Around 67 persons attended the training program held at Copthorne hotel, Doha during the 3rd week of March 2015. Mr. Asif Zahid, Sales Manager - Trade, Osram ME headed the training which lead the attendees through the world of lighting – informative, engaging and interactive session. It was a quick, simple and stress-free way of acquiring useful knowledge and new insights into LED products and explained about the excellence in perpetuating Osram products, and highlighting their improved energy efficiency. The one day training program brought awareness to its participants

96 | QCN YEARBOOK | 2015

about the latest technologies of Osram LED products. The attendees were awarded with certificates by Mr. Altug Okay, General Manager of Jaidah Electrical Division and Mr. Asif Zahid, Sales Manager - Trade of Osram ME.

industry insights

Thampi Narayanan, managing partner of Aluminium Technology and Auxiliary Industries (Alutec), says they offer every possible aluminium and glass-related facility under one roof.

Could you tell us more about your company and the solutions you offer? In 1995, I started this company with 12 people. From there on, we kept growing on a yearly basis. Our growth trajectory still continues. Our main achievement is that we have been able to offer every possible aluminium and glass-related facility under one roof. This is probably very rare in the entire world. There are companies who are perhaps bigger but they are doing part activities. But we do everything – from aluminium raw material to the end product and production of glazings. You name it and we have the facilities. That’s the strength of Alutec. We have workforce from 26 nationalities – from Europe, Asia and Africa. The market was very different in those days when you started. How did you foresee that there would be demand for your products and services? From the year 1995 onwards, the outlook of Qatar started changing. So we also started investing into the business. Later came the Asian Games in 2006. That made big changes, and now you have 2022 World Cup and Qatar National Vision 2030. So Qatar is growing and we are also growing. How was the last year for you from a business point of view? What is your expectation for 2015? We never ever had shortage of work here. We always have enough job orders. We are adding more facilities

the practice of price undercutting is not sustainable in the long term After starting his company in 1995 with just 12 people, Thampi Narayanan, managing partner of Aluminium Technology and Auxiliary Industries (Alutec), has come a long way. Today, Alutec claims to be one of the largest aluminium and glass companies in Qatar, offering everything under one roof. In an exclusive interview with QCN, Narayanan shares how his company evolved over the years and why there will be more demand for his kind of business. to absorb additional business. So I would say the year 2014 was good, and this year will also be good. We already have enough booked orders for 2015 and we are still getting new ones. What is the production capacity of your plants? We can execute projects worth up to QAR300 to QAR400 million per year. In tonnage terms, we can process 4000 tonnes of aluminium and about 400,000 square metres of glasswork. This glass capacity has increased significantly after our new glass factory was commissioned in 2013. We are building these facilities looking ahead of what is expected to come in the future. What category of projects drive your business? These are mainly from real estate, hospitals, offices, and of course, private real estate buildings. Where do you source your raw materials? The import of aluminium raw materials is reducing because Qatar government has an aluminium smelter facility here. Also, there is the Qatar Aluminium Extrusion Company (QALEX), the brainchild of Qatar Industrial Manufacturing

Company (QIMC), in which we are also a partner, which is producing raw materials for us. Do you upgrade your technology to meet growing quality demand from architects and designers? Now if you look at Qatar, most of the internationally known architects are designing buildings, which are not easy to build. So you need modern and up-to-date facilities. You need

Alutec has provided curtain walls and automatic doors for the Ghanem office building which was completed in 2014.

2015 | QCN YEARBOOK | 97

resources & equipment

Alutec supplied aluminium glazed curtain walls, composite columns and wall cladding for the staff access building at the Hamad International Airport.

Car rental facility at the Hamad International Airport where Alutec did the work of aluminium perforated cladding and column cladding.

visitors from Europe, the US and Japan to validate our companies from various projects, and we have not had any negative feedback. How has your company’s growth been so far? We have had an average growth rate of 12 to 15 percent every year. We expect our growth rate to reach 30 to 35 percent in the coming years. knowledge. So we have to upgrade ourselves or else we will be out of business. We keep on adding new technologies to upgrade our facility. There is not a single year in the last 20 years when Alutec did not upgrade its facility. We bring technology from all over the world, be it the United States (US) or Europe. Do you have the capacity to take on mega projects? Of course we have the capacity. If you take the example of sustainable buildings, we have every facility to make that happen all under one roof. The raw materials quality meets the standards of the government. The production meets the local requirements. Are you supplying for the 2022 World Cuprelated projects as well? Regarding the stadiums, so far it has not happened because those are in the process of being awarded. But I have seen there are three major stadiums, which have been released now for tender. We will bid for those projects. Alutec has the capacity and capability to do these jobs. There is a general perception that local companies are not capable of taking up critical projects, so there is an emphasis on imports. What is your view on this? That happens, to some extent, because people are not validating the local facilities. That could be the reason. We have had

98 | QCN YEARBOOK | 2015

hat kind of competition do you face? W I have not seen any consistent competition in the recent past. They come and they disappear in one or two years and then someone else comes. So I have not seen any successful and consistent competition so far. They are all short-term because they come and take jobs without knowing the market realities. The practice of price undercut that new entrants sometimes offer is not sustainable in the long run. How sustainable or green is your product? If you look at the raw materials, all are produced mainly in the Gulf Cooperation Council countries. Aluminium is a recyclable material and so is glass. These are the two main components. We are complying with all the environmental rules in our factories. What is your take on the industry’s ability to take up a large number of projects that are expected to come due to the 2022 World Cup? The Qatar government department has done a survey, and a technical team has visited and inspected our facilities. They were surprised to see such facilities under one roof. We have got a certificate from Ashghal stating that we have the capability and capacity to take up the Public Works Authority’s jobs. Qatar government is probably encouraging the local facilities to upgrade their standards. This is actually the first time that the government is taking such an initiative to evaluate the local facilities.

The company supplied interior glass wall and curved glass lift enclosure for the Jasmiya Tower which was completed in 2013.

ALUMINIUM TECHNOLOGY AUXILIARY INDUSTRIES W.L.L. T. 4460 2334/ 4460 2835/ 4450 4131 F. 4460 2841 to 42 P.O. Box: 40625, ST. No. 31, Bldg. No.157, Gate No. 149 Salwa Industrial Area, Doha-Qatar E. alutec@qatar.net.qa

SPECIALIZED IN: Â&#x2021; Â&#x2021; Â&#x2021; Â&#x2021; Â&#x2021; Â&#x2021; Â&#x2021; Â&#x2021;

Glazed curtain wall : Unitized, Structural, Spider & Conventional. 8/ FHUWLÂżHG ÂżUH UDWHG VWHHO JODVV GRRUV ZLQGRZV SDUWLWLRQV FXUWDLQ wall. Cladding : ACP, Stainless Steel, Bronze & Fibre cement panels. Bulletproof/blast resistant glass, tempering & lamination of jumbo glass, curved lamination & acoustic glass panels. Architectural decorative screens â&#x20AC;&#x201C; Metal & Glass. Automatic sliding, hinged & revolving doors. Staircase, handrails & balustrades Protective coatings : PVDF/Kynar, powder coating, anodizing & wet coating.

"Pioneer in High Quality Building Facades"

resources & equipment

Construction skills: a new approach The human resource challenge for Qatar’s construction is not just about acquiring workers, but also hiring those with the right set of skills. Lewi Griffiths looks at some ways of addressing this issue.

The sheer scale of major infrastructure projects across the Gulf Cooperation Council (GCC) and the wider region in the next 15 years, according to EC Harris, includes 117 major programmes planned for completion by 2030. These will cost more than USD1 trillion (QAR3.64 trillion), with 1.2 million additional labourers needed between 2014 and 2019, and 135,000 professional staff needed at programme peak. These numbers dictate a wholesale shift in the way that skills are acquired, verified and enhanced for workers in the construction industry. Innovations in construction methods, increasing environmental considerations, and the scrutiny of projects from a welfare perspective on the international stage, are just a few of the complexities that may not have existed 10 or 15 years ago. There is a push, albeit a slow one, for a set of global skills-based standards grounded in Key Performance Indicators (KPIs). This evolution is likely to focus initially on health and safety, workforce welfare, the environment, and functional safety in parallel with verifying a consistent standard for entrylevel skilled and semi-skilled roles. This requires us to rethink the skills agenda for the construction industry in a way that combines the experiential skills with the taught skills. It should bring together ‘time acquired’ skills with the ‘just-in-time’ (JIT) skills, and give veracity to those claiming skills, while providing an internationally recognised mechanism to develop existing, and acquire new skills.

Verification

The bulk of learning in construction should reflect direct context and be built upon experience in the workplace. The ultimate aim is to create a sustainable model where the

100 | QCN YEARBOOK | 2015

workforce is mobile and consistent in terms of entry-level standards. In this model, core competencies in a trade, such as carpentry, can be identified and measured regardless of where the worker originates, the job, or location. With migrant workforces making up Qatar’s workforce, it is important to verify skills prior to workers leaving their home country. For example, there is a move towards Construction Skills Certification Scheme (CSCS) in the United Kingdom. The scheme proves an individual is competent to work on site in a given trade, the competencies they claim they have, and have undertaken the necessary training to work in the given environment in a safe manner. Skills verification can be achieved by creating physical and virtual centres that individuals attend in their country prior to arrival in the GCC.

Skills passport

A skills passport ties directly to the concept of lifelong learning and is a knowledge management piece. It follows verification and demonstrates that the holder is suitably qualified and experienced. Driven by safetycritical industries such as nuclear and rail, the skills passport is usually built on a cloudbased infrastructure with a worker database that holds the training records for passport holders. It also has the ability to report on the data held, and generate secure physical cards or passports for the individuals to carry and show on site. A skills passport also allows instant recognition of new skills. The passport enables an employer to confidently hire, as it proves an individual has undertaken all necessary site induction and health and safety training. The skills passport is supported by a training framework that maps job roles, competencies within

those roles, and the intensity to which they should be undertaken according to a specific job. If undertaken correctly, skills passports can create a more flexible, mobile, and responsive construction workforce in Qatar that is capable of working in a safer and more efficient manner.

Rapid up-skilling

The pace of change in skills requirements has created a situation where resources that were once plentiful are becoming limited and vice versa, and as technology and processes become more complex, this situation will be exacerbated. The need to brief workers on a shift-by-shift basis is increasingly important. The advent of distributed learning to tablets and smartphones may not be appropriate to the labour market in the region, but the creation of briefing cubes or boards where workers are informed about the shift ahead and what will be undertaken could be. This will drive not only skills acquisition but will also improve efficiency, quality, and health and safety.

Lewi Griffiths is commercial director at Pera Training – a workplace training provider in the United Kingdom.

Qatarâ&#x20AC;&#x2122;s construction market currently stands at an estimated worth of about QAR1 trillion. Local and international contractors, subcontractors, consultants, project managers and architects are involved in some of Qatarâ&#x20AC;&#x2122;s leading projects.

Civil & Contracting 104

modern arab architecture

109

industry insights: Keo consultants

113

world cup preparation

117

industry insights: Al sraiya HOLDING

121

industry insights: khayyat contracting & trading

125

industry insights: Tadmur holding

civil & contracting

Ibrahim Jaidah, CEO of AEB, is of the view that working with global companies has proved to be beneficial for both global and local partners. While the local companies learn from the former’s global standards, the global organisations benefit from the latter’s local knowledge.

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. 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, writes Farwa Zahra. American 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 development now synonymous with Qatar being the host country for the 2022 World Cup. 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 [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

104 | QCN YEARBOOK | 2015

interview

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 PearlQatar to be unique and essentially different. With stadium designs for the 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 Qatar’s latest government buildings 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,” adds 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, Jaidah reveals, “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, 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 practise in Qatar. They seek our advice, our local knowhow, our regulations on very detailed designs as well as the understanding of the contracting [climate],” explains Jaidah, whose company has grown from six employees in 1991 to more than 600 today. With branches in six countries, AEB has also designed projects in several other countries, 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.

Qatar’s modern buildings such as the Museum of Islamic Art demonstrate a contemporary version of geometric patterns used in traditional Arab architecture.

“The Qatari force in the private sector in the engineering and architectural industry is much less than one percent.”

2015 | QCN YEARBOOK | 105

civil & contracting

“We are literally seeing the birth of a contemporary Arabic or Islamic architecture happening here in Qatar.”

Pictured here is Al Sharq Village and Spa, designed by Arab Engineering Bureau. (Image AEB)

106 | QCN YEARBOOK | 2015

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. However, with most building materials being imported, Qatar remains vulnerable to international price hikes, explains Jaidah. While the country is not alone as many Gulf Cooperation Council countries also depend on imports, Qatar faces an added challenge ahead of the 2022 World Cup and Qatar National Vision 2030, which call for massive construction. 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. “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 the country, rather than having to import it.” 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 that we are designing, they are all going green now, so we are contributing extremely heavily,” he closes.

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

a qatari magazine dedicated to the countryâ&#x20AC;&#x2122;s booming construction industry sector name | banner heading

smartphone and tablet optimised.

www.qatarconstructionnews.com

The Edge | 1

industry insights

Donna Sultan, chief executive officer of KEO International Consultants.

Major projects in Qatar 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 the latest updates on KEO’s major projects such as the Doha Zoo and Al Wakrah Stadium. What is KEO’s presence in Qatar? KEO Qatar has more than 1300 staff in the country. We are fully licensed 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 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 masterplanning to preparation of construction documentation for projects. We also have a major presence of expertise and professionals who 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 of KEO’s major projects in Qatar? It is 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 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 a built-up area of over 690,000 square metres 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 project and construction managers for Al Wakrah Stadium, various major sporting centres for the Qatar Olympic Committee and various hospital-related facilities for Hamad Medical Corporation. We are also the engineers servicing the Public Works Authority (Ashghal) on their Expressway Programme in a number of their important road projects as well as on their major water and wastewater projects. KEO is also the 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 Pearl-Qatar and design or supervision of new hotels, commercial towers, many facilities at the new Hamad International Airport and developments in the Lusail City for various clients. This 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, and is growing at a much faster rate

2015 | QCN YEARBOOK | 109

civil & contracting than other Gulf countries. However, the United Arab Emirates’ project market has started to pick up pace, as has Dubai’s in preparation for Expo 2020. The Abu Dhabi market shall soon follow suit. Oman and Kuwait’s project markets are growing, but at a slower pace. The Bahrain market is currently sluggish. The Saudi market is very large and has great potential. What are some of the challenges consultants 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. A number of the Gulf Cooperation Council 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 the 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 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? The site enabling works started in 2014. 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 Rainforest. Facilities will include a unique land bridge 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 of the updates on Al Wakrah Stadium? This certainly is one of KEO’s most challenging and dynamic projects in Qatar. The early works began late December 2013. 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 and a multipurpose indoor arena with a variety of sport facilities. It will also include a future international school for 1000 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.

Among KEO’s projects in Qatar is the Education City, pictured here.

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

KEO was named the construction managers of the new Sidra Medical and Research Center at Education City – one of the largest medical centres in the Middle East.

110 | QCN YEARBOOK | 2015

PROVIDING YOU THE STRONGEST PRODUCTS WITH THE FINEST SERVICE

On your quest to achieve success, you need a reliable partner by your side. At Jaidah Industrial Supply, we bring the most advanced products from the best international brands to cater to your Safety, Metal Fabrication, Tools & Equipment, Machineries and Material Handling needs. Together with our trusted reliable after sales services, we ensure your business operates at its maximum potential. Industrial Area St. No.24 | P.O. Box 150, Doha - Qatar T: +974 4463 8777 | F: +974 4460 4286 E-mail: customercare.isd@jaidah.com.qa www.Jaidah.com.qa

interview

Abdulaziz Ali Al Mawlawi, senior design management engineer with the Supreme Committee for Delivery & Legacy (SC), says that all stadiums for the 2022 World Cup are being designed and constructed with the goal to comply with the GSAS and LEED certification standards. (Image SC)

is Qatar on the right track ahead of the 2022 World Cup? An interview with Abdulaziz Ali Al Mawlawi, senior design management engineer, Supreme Committee for Delivery & Legacy.

From the number of stadiums proposed for the 2022 World Cup to the timing of the tournament, Abdulaziz Ali Al Mawlawi, senior design management engineer, Supreme Committee for Delivery & Legacy, discusses the progress of Qatar’s World Cup preparations in an exclusive interview with QCN’s Farwa Zahra.

“We hold our contractors, our subcontractors and ourselves accountable for ensuring the highest standards for health and safety are upheld.”

220,000 The combined seating capacity of the five stadiums Qatar has so far proposed for the 2022 World Cup.

Qatar is nearly halfway to the 2022 World Cup since the venue, Doha, was announced in December 2010. Supervising the preparations for the tournament, the country’s Supreme Committee for Delivery & Legacy has announced designs for five stadiums proposed for the World Cup. The country is yet to reveal designs for at least three more stadiums to comply with FIFA’s minimum requirement on the number of venues to hold the tournament. Getting updates on the progress towards the World Cup preparations, QCN approached Abdulaziz Ali Al Mawlawi, senior design management engineer with the Supreme Committee for Delivery & Legacy. With a bachelor’s degree in Civil and Structural Engineering from the University of Leeds and a master’s degree in Strategic Business Management from HEC Paris, Al Mawlawi is currently managing all design issues related to the Lusail Precinct in order to ensure the delivery of the Lusail Stadium. Of the overall progress in preparation for the 2022 World Cup, Al Mawlawi told QCN that construction is underway at a number of stadiums, including early works at the Al Wakrah and Al Khor stadiums. Among the key complexities circumventing Qatar’s winning bid for the 2022 World Cup was the issue of the tournament’s timing in summer, until FIFA’s recent decision to move it to November-December. In 2014, Brazil launched the world’s first sustainable stadium accredited with Leadership in Energy and Environmental Design (LEED) certification system. Speaking about Qatar’s strategies to deliver sustainable stadiums, Al Mawlawi says, “All stadiums for the 2022 FIFA World Cup are being designed and constructed with the goal of certification using the GSAS (Global Sustainability Assessment System) and LEED certification standards,” further adding that, “Incorporating green building certification ensures a structured approach is

taken to delivering sustainability by considering criteria such as building materials, environmental impact, and stadium operational requirements.” Explaining the reasons for registering with established systems for sustainability accreditation, Al Mawlawi says, “Applying third-party certification processes confirm that the project was designed, built and will be operated the way it was intended, through its entire lifecycle.”

Towards Qatar’s National Vision

In the context of the World Cup, attaching the concept of sustainability to stadiums alone would be limiting the scope of an otherwise expansive field of green construction. In fact, a large part of Qatar’s preparation for the World Cup involves delivering the infrastructure required to accommodate the influx of visitors during the tournament, and of workers joining Qatar’s workforce prior to the event. “The Supreme Committee for Delivery & Legacy is committed to ensuring that all projects and infrastructure leave a genuine social, human, economic and environmental legacy that is aligned with the 2030 Qatar National Vision,” says Al Mawlawi. Highlighting that the planned development was already laid out in the country’s national vision, he continues, “Infrastructure development within Qatar is being planned to support the Qatar National Vision 2030. The Supreme Committee for Delivery & Legacy is developing a tournament operations strategy that is aligned with Qatar’s national infrastructure needs... As we move forward with the preparations for the first FIFA World Cup to be held in the Middle East, Qatar is progressing at a rapid pace. We are making sure that our preparations align with Qatar’s other development imperatives, as described in the Qatar National Vision 2030.” Moreover, Al Mawlawi, who considers the ongoing construction and infrastructure works linked

2015 | QCN YEARBOOK | 113

civil & contracting

to the World Cup as one of the milestones in achieving Qatar National Vision 2030, rather than looking at these developments as part of an independent opportunity.

Key challenges

Looking at the difficulties in the way of successfully delivering the World Cup, Qatar is faced with both external and internal challenges. One such complexity relates to the number of stadiums. Commenting on the matter, Al Mawlawi says, “Our bid to host the 2022 FIFA World Cup included 12 stadiums; however, the process of selecting the final proposed lineup of host venues is ongoing.” Apart from such external uncertainties, the projects underway for the World Cup are also prone to the common risks attached to the construction sector. One such challenge is that of dealing with delays, which becomes even more critical for SC working against an immovable deadline of 2022. Speaking about the organisation’s strategy to deal with the issue, Al Mawlawi says, “The Supreme Committee for Delivery & Legacy is working closely with all partners responsible for delivering stadiums and infrastructure for the 2022 FIFA World Cup. We are proud to confirm that construction on the Al Wakrah Stadium is ahead of the schedule.” When asked about some milestones one can expect in the near future, he adds, “Our preparations for the 2022 FIFA World Cup are progressing well with construction already underway at two proposed stadiums. Three other proposed stadiums will be in different phases of construction in the near future. These early milestones are clear indicators that we are working hard to deliver tournament stadiums on schedule.” While not specifying any particular time, Al Mawlawi asserts that the stadiums will be complete in advance to allow ample time for testing phase. Among the internal challenges is the treatment of migrant workers in Qatar – an issue that has stirred international criticism and scrutiny over the last couple of years. When asked about some steps SC has taken to ensure workers’ welfare is maintained according to international standards, Al Mawlawi says, “We hold our contractors, our subcontractors and ourselves accountable for ensuring the highest standards for health and safety are upheld on Supreme Committee for Delivery & Legacy construction sites and worker accommodation.” Giving details of some strategies, he tells QCN, “Compliance with our standards will be vigorously enforced through a comprehensive four-tier auditing system, implemented with the support of independent third-party auditors. We will publish the results of these audits to track progress and share what we learn with our stakeholders in government and in the international community.” In December 2014, the Supreme Committee released its first Semi-Annual Workers’ Welfare Compliance Report featuring its goals, achievements, and challenges in relation to the first six months of implementing the SC Workers’ Welfare Standards. The worker welfare compliance system starts with the tendering process when the bidders are asked to submit a report documenting the living and working conditions of their workers. After the award phase, the welfare standards are monitored through this four-tier audit system, which includes monthly self-audits by the contractor, ad hoc SC audits, ad hoc external monitor audits and Ministry of Labour & Social Affairs inspections.

114 | QCN YEARBOOK | 2015

Key concerns and lessons

While most concerns around the 2022 World Cup currently revolve around the issues of construction, once the stadiums are complete, a whole new set of operational concerns will follow. These will involve the complexities that may arise during the tournament. To have a look into these concerns, a delegation of SC attended the FIFA Observers Programme in Brazil. Commenting on the experience as a great learning opportunity, Al Mawlawi says, “It’s a given that attending a mega event such as the FIFA World Cup provides one with a good idea of the effort required to manage such an event. However, attending the well-organised Observers Programme arranged by FIFA added even more value to the knowledge we gained by attending the Brazil FIFA World Cup.” Summarising some key takeaways from the visit, he says, “It was immensely valuable to witness the work of the different departments and teams that planned and managed the event. It was also an eye-opening experience to be present during the exciting and challenging moments of the event. Our group captured a lot of lessons for Qatar to consider, such as making sure to engage FIFA and the various local stakeholders from the beginning of our planning, to avoid future challenges and delays and to distribute all possible benefits.”

“Our group captured a lot of lessons for Qatar to consider, such as making sure to engage FIFA and the various local stakeholders from the beginning of our planning, to avoid future challenges and delays and to distribute all possible benefits.”

To feature a seating capacity of 40,000, Khalifa International Stadium has been redesigned to meet FIFA’s venue requirements for the 2022 World Cup. The renovation works are scheduled to complete in 2016. (Image SC)

With its design unveiled in December 2014, the new Qatar Foundation Stadium will be located in Education City. The stadium is scheduled to be complete in 2018. (Image SC)

industry insights

Al Sraiya Holding Group’s vice chairman, Rashid Sraiya Al Kaabi says that as a diversified group they offer a range of integrated services delivered through one brand name.

EXPANDING INTO DIFFERENT FIELDS PROVIDED US an OPPORTUNITY TO GAIN EXPERIENCE AND RECOGNITION

Diversification has been the key to success for Al Sraiya Holding Group, which completes four decades this year. In an exclusive interview with QCN, the group’s vice chairman, Rashid Sraiya Al Kaabi reveals what it takes to build a trusted company that offers a ‘one-stop’ solution for all construction needs. This year you complete four decades in the business. How has your journey been so far? A journey for a holding group is always filled with new challenges. It takes a lot of strategic planning and risky decisions, especially when you want to break into several fields that are different from one another, as Al Sraiya Holding Group has done (engineering, trading, general services, hospitality and industrial). This year (2015) in particular has been exciting as it marks 40 years for Al Sraiya in the market, and we have been celebrating through new projects and investment

plans that will surely benefit the group’s strength and position in the Qatari market. We are also very focused on grasping new opportunities through new partnerships with multinational companies that can further enhance our ongoing projects, and allow Al Sraiya to further expand. Do you reckon your strategy to diversify has been key to your success? Diversifying our businesses and joint ventures are both contributing factors to the success Al Sraiya has achieved so far. Expanding into different fields has provided the

Al Sraiya was the turnkey subcontractor for the multi-story Barwa Commercial Avenue which comprises one parking basement, ground floor showroom, mezzanine and two floors of rentable office space.

2015 | QCN YEARBOOK | 117

civil & contracting group with opportunity to gain experience and recognition, echoing the brand name as a ‘one-stop’ for all construction needs, which is the idea we have been working to own in the customers’ minds. Expansion allows us to work with many different customers, with whom we have strived to maintain strong relations, even after the projects are complete. We also continuously forge new ties with international companies and worldwide chambers because it allows us to invest in technologies and increase efficiency of our production facilities. These are necessary to create a strong core industry and a highly trusted brand in the market.

Al Sraiya Contracting has done a number of construction projects in Doha including the 17-storey Al Jassim Tower which was completed in September 2008.

What have been your recent business achievements? We are continuously becoming involved in notable projects. It would be difficult to name only a few. However, the success we have achieved particularly in recent years is focused on working with large clients in mainly the construction field (such as Ashghal), contributing to projects such as the Lusail City and Doha’s New Port, that will help Qatar’s economy to develop. We have already built our reputation as one of the strongest in our field, and maintaining companies in a diversification of fields is an accomplishment on its own. Being a local company, what more do you bring to the table? We bring value to the market through 40 years of management expertise, accumulated operational competence, and added resources such as capital, corporate staff services, local market intelligence, and knowledge. As we are a diversified group, we offer a range of integrated services that are delivered through one brand name – Al Sraiya. Furthermore, resources are distributed between the sister companies, which eliminates issues that could arise due to the lack of resources or connections. What are some key trends in Qatar’s construction sector? The market is currently focused on everything ‘mega’ – mega projects, mega investments, mega accomplishments. Qatar’s economy has significantly grown in the last few years due to its preparation for the 2022 World Cup. Furthermore, plans to achieve the goals laid out by Qatar National Vision 2030 have drawn the attention of all construction companies. All new and ongoing projects are dedicated to growth of the country, which also encourages companies to network with international brands for resources and new technology. That being said, expansion is key in the coming period. It is now preferable for construction companies to employ the help of other fields such as engineering and industrial. All sectors need to overlap for concrete achievements. How confident are you about the sector’s preparedness to deal with the surge in construction projects due to the World Cup? Qatar’s economic sector in particular has gained significant strength in recent years due to growing projects and investments. This has caused a rise in the market’s competition and because of this, resources are no longer only offered locally but also internationally (through investments and joint ventures). Therefore, we do not expect an issue with the availability of resources. On the other hand, Qatar has set goals to complete by the 2022 World Cup and Qatar National Vision 2030, and it is understandable why there is some concern over its timely completion. However, through strategic planning and expertise, we believe Qatar will be able to achieve its goals in time.

118 | QCN YEARBOOK | 2015

How are your other businesses doing in the sectors of hospitality, general services and trading? Companies under the holding group such as Al Sraiya Trading & Contracting, Badr Contracting, Simsima Cement Tiles and Block Factory, Al Sraiya Consulting & Engineering, Bin Sraiya Readymix, Doha Beton and Clic Qatar Trading Company, etcetera, have acted as main contractors for clients such as Ashghal, undertaking the construction of towers in Dafna and Lusail City, Hamad International Airport, and Doha’s new Hamad Port, in addition to buildings for the government and local authorities. Our other businesses have all shown an increase in the first quarter of 2015, particularly in the hospitality sector. Millennium Hotel Doha has already earned two awards during the International Hotel Awards 2015. Overall, growth has so far been continuous, and we are looking forward to more achievements by the end of the year and in the near future.

The company also constructed a nurse’s club, cafeterias, education centre and a Friday mosque inside the Hamad Medical City.

industry insights

According to Mohammed Moataz Al Khayyat, CEO of Khayyat Contracting and Trading (KCT), some of the major challenges for local design and build companies include banks’ inflexibility regarding required guarantees against contractors financing and competition from foreign companies. (Image KCT)

Construction in Qatar is challenging, yet rewarding Souq Waqif Car Park is one of Doha’s latest projects delivered by Khayyat Contracting and Trading (KCT). In an interview with QCN, Mohammed Moataz Al Khayyat, CEO of KCT, talks about the group’s key projects. Tell us about KCT and its company, UrbaCon Trading & Contracting (UCC). The company has a team of 25,000 trained specialists in various occupations as well as over 5000 qualified engineers working on the latest technical specifications for the construction of high technology buildings. KCT also possesses a number of high-rise buildings and many industrial and commercial lands and factories. Through trained resources and consistency in meeting demanding schedules, KCT’s clients receive a quality project in record time with cost effective solutions to improve the bottom line. For a design and build company such as UCC, what are some of the challenges of operating in Qatar’s construction market? There are many challenges facing the country and the Gulf construction companies. Perhaps the most notable are financing challenges, banks’ inflexibility regarding required guarantees against contractors financing, entering big tenders, implementation of projects, and the diversity of standards for companies qualification. In addition, there is huge competition from foreign companies as they are engaged in 80 percent of infrastructure and building projects in the Gulf Cooperation Council (GCC) countries. But the encouraging sign is that the size of infrastructure, real estate and construction projects has been increasing, and the forecasts indicate that the projects in the GCC will reach a value more than USD800 billion (QAR2.9 trillion) in about five years. Having worked on Anantara’s Banana Island Resort, how do you think the resort will ensure visitors during peak summer time? Banana Island Resort is designed as a year-round family destination. Of course, being on an island, guests can cool off in the sea when temperatures soar, or in their chilled private swimming pool. The resort also caters to those who wish to have a break from the sun with a shaded surf pool, scuba diving, beach club, luxurious spa, cinema, family bowling centre, restaurants and cafes, a fully equipped gymnasium, and a 7000 square metre (sqm) wellness centre. The resort also caters to all business needs with a fully equipped business centre. All in all, the Banana Island Resort offers plenty of options to work and have fun throughout the year. Are there any artificial turfs or sand surfaces created in the resort to match its Maldivian style? How sustainable is the project? The Maldivian flavour has been created in the island by utilising

2015 | QCN YEARBOOK | 121

civil & contracting

Orient Pearl Restaurant, located in Doha’s Corniche, is one of KCT’s projects. (Image KCT)

substantial traditional wood sections in buildings, and simulated thatch roofs. Also, footpaths are typically kept as simple sand tracks. The resort also features Maldives’ traditional over-water villas, and lush tropical landscaping. Similar to the Maldives, the island is self-contained with its own wastewater treatment plant, which provides irrigation water, and a reverse osmosis plant serving all other water requirements. Tell us about the recently-opened underground Souq Waqif Car Park? The Souq Waqif Car Park has three air-conditioned basement levels, accommodating approximately 3000 vehicles. One of the features is the pedestrian tunnels which connect the car park to both Souq Waqif and directly to the Corniche. The Corniche tunnel has been carried out utilising traditional tunnelling methods. In order to avoid disruption in traffic flow by closing the Corniche highway, each tunnel has escalators, lifts, stairs and a ramp to cater for all pedestrian requirements. Which project in Qatar do you find most rewarding in terms of uniqueness and experience? We have been engaged in a number of rewarding projects here in Qatar, ranging from the Lekhwiya Football Stadium, Banana Island Resort and Souq Waqif Car Park to mention just a few. However, to date, the most rewarding one has been the refurbishment of the Sheraton Doha, this design and build project was very challenging and drew on our full portfolio of companies, ranging from interior design, highend joinery, marble works, aluminum works, GRG, MEP, facility management, logistics and supply of furniture and equipment, to complete this substantial project in just seven months. What are some of the upcoming projects which you think will become iconic for Doha in the future? Doha has many well-known iconic projects planned or in progress. These include the Doha Metro, Sharq Crossing and of course the football stadiums. However, one project, which is really going to have an influence in everyone’s daily life here, is the Doha Grand Park, now called Al Bidda Park. This 2.5 million sqm park, designed by the KCT Group, will provide a central attraction in Doha. The park will provide expansive green landscaped areas for residents and visitors alike, together with lakes, hotels and cafes, etcetera. Similarly, the Mall of Qatar, a flagship 425,000 sqm development, currently under construction

122 | QCN YEARBOOK | 2015

by the KCT Group, will offer both family entertainment and excellent shopping opportunities for Doha’s residents for years to come. What are some of the measures that UCC has taken to ensure good health, safety and environment (HSE) conditions for its employees? HSE within the KCT Group is encouraged as a culture, it is the responsibility of each and every employee. The group ensures that all necessary personal protective equipment is provided, together with in-house training at custom-built centres. The group also takes extra care of its workforce during the summer months with the regular provision of rehydration and air-conditioned rest areas. What are some of the key concerns in Qatar’s construction sector currently? A key concern in the market is the availability of skilled resources. We find that specialist subcontractors are becoming very busy and as a consequence, unreliable. Hence, KCT’s strategy is to expand on its own heritage and develop in-depth resources in all fields; it was this strategy that enabled the group to meet challenges of the Sheraton project, where some 16,000 employees were engaged during the peak period.

The Mall of Qatar, a 425,000 square metres development, is currently under construction by the Khayyat Contracting and Trading. (Image KCT)

We find that specialist subcontractors are becoming very busy and as a consequence, unreliable.

advertorial feature story

CITYSCAPE

Cityscape Qatar 2015 Announces Huge List of Exhibitors at the Country’s Leading Real Estate Development Event

qatar

Key exhibitors at Cityscape qatar 2015 include the United Development Company, Cityscape’s Foundation Sponsor, along with al Bandary real Estate and retaj qatar International development opportunities and upcoming projects, as these projects will in turn deliver vast investment and growth in transportation, residential and commercial real estate. This year we have a great calibre of exhibitors who will show both their brand as well as their projects to the industry’s most influential stakeholders.” Also, Al Bandary Real Estate will be showcasing their huge projects at Cityscape Qatar, and one of their latest development projects is “Amwaj”, a brand new Tower which will feature a charming aqua park inside it. In addition, Al Bandary Real Estate will also be discussing other upcoming projects that have been planned for both West Bay and in Lusail, two key hubs in Qatar. Doha, Qatar: 19 April, 2015 – Cityscape Qatar 2015, one of the Middle East’s leading real estate development and investment events, has announced a vast list of exhibitors who will participate in this years’ show. The high profile three day event will take place under the patronage of H.E. Sheikh Abdullah Bin Nasser Bin Al Thani, Prime Minister and Minister of the Interior for the State of Qatar, on 11-13 May 2015, at the Doha Exhibition Center, Qatar.

The esteemed three-day conference and exhibition is expected to attract over 8,000 visitors and will showcase a wide range of real estate investment opportunities and services to private and professional investors as well as key industry professionals from Qatar, the region and from around the globe. Further, Cityscape Qatar 2015 will explore diverse projects and potential opportunities in delivering upon Qatar’s National Vision 2030.

Cityscape Qatar 2015 has already confirmed a number of exhibitors from local companies, including the United Development Company (UDC), Al Bandary Real Estate, United Developers and Retaj Qatar International (Retaj Group), who will be greeted by an expected 8,000 visitors. There will also be a number of regional and international companies participating, including Azizi Developments and Dubai Properties from the UAE, MENA Real Estate from Kuwait and the Turkish company, Bosphorus International Real Estate Investment. Cityscape Qatar offers the ideal platform and opportunity for real estate developers to engage with different stakeholders, as the government of Qatar embarks on a number of real estate, construction and infrastructure projects. UDC, Foundation Sponsor for Cityscape Qatar 2015, is one of Qatar’s leading companies that work to identify and invest in long-term projects that contribute to Qatar’s growth. UDC has confirmed it aims to showcase The Pearl-Qatar as a world-class mixed use urban development and to highlight the role it plays in promoting Qatar’s growing perception as a destination for luxury developments and investments. Meanwhile, Retaj Group, one of the leading business houses in Qatar with esteemed divisions that focus on building and developing in the realty division, will focus on a number of projects related to the real estate and hotel sectors during Cityscape Qatar 2015. The Retaj Group will be introducing a number of its remarkable projects during the summit, including their buildings and apartments in Lusail City, a futuristic project which will create a modern and ambitious society. Other ground breaking projects include its land selling trading project in the UK, and the villas, apartments and suites resort project in Sarajevo, Bosnia and Herzegovina. Deep Marwaha, Group Director on behalf of Cityscape Qatar, said: “Cityscape Qatar is the ideal opportunity to showcase real estate

124 | QCN YEARBOOK | 2015

To find out more about Cityscape Qatar 2015, please visit: www.cityscapeqatar.com

industry insights

Strategic vision for a diversified group Tadmur Holding was set up in 1985 and in about 30 years, it has evolved and grown into a holding group. Dafer Mustafa Hallawa, chief executive officer talks to QCN, focusing on their transition, business model and their plans for the years ahead.

Dafer Mustafa Hallawa, CEO of Tadmur Holding, says their expansion was aimed at entering into joint ventures with international contractors for major projects in areas where the company does not have the sufficient knowhow to handle independently.

Tell us how the business scenario has evolved in the 30 years since Tadmur Holding was set up. We started in 1985 as a small company, with a total number of six employees. From the beginning, we had a vision that our target was to build an organisation that could earn the trust of the Qatari market. With that vision, we concentrated on a few crucial differentiators: providing an excellent service and at the highest quality standards; and being honest and transparent with our customers, suppliers and clients. With this as our guiding philosophy, we started building up the small divisions. In 2006, we ended up with 18 divisions, employing around 4000 people when we realised that we could no longer run a company with so many divisions, and a more efficient way of managing would be to transfer them into a holding company with subsidiaries and each company becoming a strategic business unit. To facilitate this restructuring, we employed KPMG in 2006 and they helped us with the organisational charts and the accounting logistics, post which, we established Tadmur Contracting and Trading Establishment into a holding company with eight subsidiaries in January 2009. Are all your businesses related to the construction industry? Most of them are related to the construction industry such as Tadmur Contracting, Tadmur Roofs and Pools, and Tadmur Trading, and construction is the biggest segment of our business. But we have one subsidiary â&#x20AC;&#x201C; Arabian Supplies â&#x20AC;&#x201C; which deals in fast moving consumer goods (FMCG), where we market food and non-food items. Could you highlight a couple of major projects that you have completed? We completed two schools for the Supreme Education Council in August 2014 and another in November, followed by three other schools in December 2014. All of these were completed on schedule. This was preceded, in 2011 and 2012, by a couple of projects, which we are proud to be associated with. One such project is the Student Centre at Qatar Foundation, our solo project, valued at QAR570 million. The second pride project is the

2015 | QCN YEARBOOK | 125

civil feature & contracting story

“This year looks better both by the volume and the number of tenders that are being given out and consequently, the number of bids that we are currently working on.”

Tadmur Contracting completed the Library Building at Qatar University. The scope of work comprised concrete and steel structural works, earthworks and electromechanical works.

Qatar University Central Library, which was awarded in 2008, but the delivery was in mid-2010 and valued at over QAR300 million. Currently, we are constructing a residential compound with 130 villas, with clubhouse and other facilities, behind Aspire Zone, in the capacity of main contractor. Are you working on any project related to the 2022 World Cup? Not directly, but we are bidding for enabling works for some of the projects, specifically for some of the clubs. We already have experience in this area, having built the Al Arabi Club, the only and the first club in the world to be air-conditioned in open air, for the Asian Games, which were held in December 2006, and handed it over in June 2006. This was done by one of our subsidiaries, Takyeef Electromechanical along with Tadmur Contracting. We have also worked in the capacity as the contractors on the Al Sadd Club air-conditioning, which was showcased to FIFA at the time of the 2022 World Cup bid in 2010. In September 2010, for the first time, the club was opened to a game when the outside temperature was 40 degrees Celsius though the seating area temperature was 26 degrees Celsius and the football pitch was at

19 degrees Celsius. At present, we still do the operation and maintenance of the system at the club. In terms of skilled manpower supply, is that a constraint you face? Manpower is always a tricky issue and the availability in the Gulf countries, with so many countries that are booming such as Saudi Arabia and the United Arab Emirates, supply is perpetually less than demand. We do face problems in recruiting trained professionals because of the high availability of jobs in the neighbouring countries. But at all times, we need to find the right people at the right price, which is the main enabler for us to win projects. Currently, both the Ministry of Interior and the Labour Department have good support policies in place for main contractors in Qatar, and this is a substantial improvement than what we had in 2012-13. One major change has been with regard to granting visas for nationalities, which we could not get earlier. If you look back on 2014, how has it been for you and the industry, and moving forward how do you see your prospects? For us, 2014 was a slow year mainly because no bulk projects were

awarded. That holds true for the overall market sentiment in Qatar. Relatively, 2015 looks better both by the volume and the number of tenders that are being given out and consequently, the number of bids that we are currently working on. If these bids come to life and they are actually awarded, then 2015 is going to be definitely a busier year than 2014. That said, in the current scenario of sliding energy prices, we need to watch carefully how fast the tenders will be awarded. One constraint is the availability of basic raw materials, which, if resolved, will speed up the delivery of projects, since there is no dearth of contractors – both local and international – in Qatar. I think the government is already working on the issue of availability of raw materials and ensuring a continuous supply of key raw materials that have to be sourced from overseas in case these are not available in the local market. To this end, the government has established the Qatar Primary Raw Material Company, which is now stocking gabbro, sand, and other materials. Additionally, the capacity of Qatar National Cement Company has also been increased and there is another line which will open in 2016 which will then bring up the country’s production for cement in very big quantities. Moving forward, how do you look at any new business strategy for business expansion? The expansion that we did in 201314 has been aimed at entering into joint ventures with international contractors for major projects in areas where we do not have the sufficient knowhow to handle singly. That precisely is the strategy that most of the local contractors are adopting currently. Other than that, we are concentrating on our strong skillsets mainly in the contracting business with Tadmur Contracting, Tadmur Roofs and Pools and Takyeef Electromechanical and our FMCG business suppliers. These strategies are important on the back of the competitive and high-risk nature of the contracting business, which results in low margins. This necessitates that we monitor and revisit our strategy at regular intervals to enable mid-course correction in case the need arises.

126 | QCN YEARBOOK | 2015

advertorial

ARACO has grown steadily in the market with strategic investments and a strong product portfolio

RACO’s ambition is to be recognized as the “Ultimate” company in relation to supporting our customers and delivering world class products.

The company’s Scania range with construction, utilities and transport applications do extremely well. ARACO is the official distributor of Scania brand, that has served many large companies in Qatar. In support of our brands and with the group’s vision at the core of company philosophy, it is important for us to identify

how that vision translates into customer expectations. We aim to create value for our customers, so they make money from doing business with us and return back again. To meet customers’ needs

within Qatar, ARACO’s facilities of 46,000sqm are equipped with workshop, parts store and dedicated training areas, led by a team of skilled technicians and parts personnel who if needed by the customer are available 24 hours a day, 365 days a year to provide aftermarket support promptly within Qatar. ARACO’s philosophy is to strive for continuous development and delivering the “Ultimate” support to its customers.

2015 | QCN YEARBOOK | 127

The increasing influx of expatriates in Qatar means a need to expand its residential capacity. With the countryâ&#x20AC;&#x2122;s population exceeding 2.3 million in February, experts believe the high-end residential sector is seeing the highest demand in Doha. Pictured here is The Pearl-Qatar, a real estate programme underway scheduled to be fully constructed by 2017. (Image Fotoarabia)

Real Estate& development

130

Msheireb downtown

134

industry insights: Deloitte

real estate & development

Engineer Abdulla Hassan Al Mehshadi, chief executive officer of Msheireb Properties, says that the company has tried to maximise the use of local materials wherever possible.

Msheireb Downtown: Towards sustainable regeneration

Msheireb Downtown Doha, a development currently under construction, has gained international attention for Qatar. Building on the idea of sustainable regeneration, the project strives to revitalise old Arab architecture while incorporating green credentials with 100 LEED certified buildings – the largest collection of buildings with LEED’s gold and platinum rating. In an exclusive interview with QCN’s Farwa Zahra, Engineer Abdulla Hassan Al Mehshadi, chief executive officer of Msheireb Properties, discusses the inspirations, details and prospects of Msheireb. In old Arab architecture, one finds examples of lowcarbon cities utilising passive energy sources adjusting to the region’s climatic conditions. While wind catchers and wind towers were designed to create a ventilation path for natural air into indoor spaces, thick walls were designed to maintain cooler temperature inside. As narrow thoroughfares helped increase the airflow, fabric shades were used to design shelter points. Within Doha, to some extent, Katara Village provides a modern reincarnation of old Arabia. On a much larger level, however, Msheireb Downtown demonstrates the idea of sustainable regeneration. Currently under construction in central Doha, Msheireb Downtown project, with its traditional design, stands in stark contrast to much of Qatar’s recent urban development comprising Western inspired skyscrapers. According to Ventures Middle East’s report Focus on Sustainability in Construction, once completed, Msheireb will be the world’s largest collection of Leadership in Energy and Environmental Design (LEED) certified buildings. Chief executive officer of Msheireb Properties, Engineer Abdulla Hassan Al Mehshadi reveals the origin of the idea behind this project. “The whole idea of regenerating the heart of the city of Doha came from Her Highness Sheikha Mozah bint Nasser. The idea was to bring something back to the centre, create a centre

130 | QCN YEARBOOK | 2015

for the city of Doha,” he says, adding that when the decision was made, there were also some considerations on challenging construction and development principles in Qatar through green buildings aimed at being LEED certified. Hence, the ideas of regeneration and sustainability were at the back of Msheireb’s masterplan.

The problem with regeneration

Despite plans to open doors for the public and tenants as part of the project’s first phase around 2016, a definite answer on the delivery date depends on the pace of work throughout the construction phase. What brings added uncertainty to Msheireb’s scheduled date of completion is its core feature of regeneration, which makes it different from most projects. When asked about the challenges of rebuilding an existing development compared to building a new development from scratch, Al Mehshadi tells QCN that Msheireb poses a number of unique challenges in addition to the common engineering and architectural issues facing any construction project. “We had to remove the earlier development including all old buildings. That created a challenge. Constructing inside the city itself is another challenge. Coming up with a new idea and showing people something entirely different is also a challenge,” he explains.

“The attractiveness of the project has been seen from day one. You have the location, you have a lot of unique selling points to this project and a lot of people are interested in being a part of it.”

interview

With work in progress day and night at the construction site of Msheireb Downtown Doha, the project is planned to open doors for public around 2016 as part of its first phase.

While Msheireb’s design draws inspiration from early Arab architecture, the project could not be entirely regenerative. Considering the modern demands of Doha, there had to be a crossover between traditional and contemporary styles. To this end, the project features a strategic mix of tall and flat structures. “There is a sort of harmony that was created and the principle we have followed,” says Al Mehshadi, explaining the logic of the masterplan “was to allow the wind to blow through the roads in Msheireb as we have kept the majority of high-rise buildings at the back side. So the front or the north side of the project is always open to wind, with the higher buildings at the back side or the south side of the development.” Whether at the back or front of the development, taller buildings within Msheireb can help increase the occupants’ capacity and attract expatriates belonging to non-Arab ethnicities. Speaking about the attractions available for people in Msheireb, Al Mehshadi says, “Expats will also have attractive components within the project. We have cinemas, we have theatres, we have restaurants in all levels and we have flats as well. The commercial buildings will have offices. So all of these will act as a magnet for different types of people from different backgrounds and ethnicities.”

Sustainable development

As Qatar’s leading development adhering to LEED certifications, at completion, Msheireb Downtown has to tick the boxes of resource efficiency, energy efficiency, cost-effectiveness, water conservation and maintenance of indoor air quality. According to Al Mehshadi, Msheireb is the only development that has a regeneration development of 100 buildings, all LEED-certified with minimum gold grade, while some also aim to attain the highest certification level of platinum. Some of these systems supporting Msheireb’s green credentials include the use of district cooling, smart metering, and photovoltaic power generation. “The LEED requirement is stringent when it comes to air quality, impact on the environment, utilisation of power, wastage of power and water, and so forth. All of these are integral to the package of the LEED certification

Msheireb Downtown project will blend Arab architecture with modern construction technology. Pictured here is an exterior view of Msheireb’s Eid Prayer Ground. (Image Msheireb Properties)

and the principle of design that we have adapted,” says Al Mehshadi. While the impact of Msheireb can be controlled through sustainable construction practices, the central location of the project makes it prone to air and noise pollution. Speaking about making sustainable choices when it comes to building materials, Al Mehshadi tells QCN that wherever possible, the project is utilising locallymanufactured products. “We have tried to maximise the use of local materials but unfortunately the Gulf states do not have a lot of local materials used in construction… We obviously have production by local companies such as Qatar Steel and Qatar Readymix but I cannot classify those as purely local.” As most of the natural resources Qatar owns are not feasible for the construction industry, import of necessary building materials is inevitable for the Gulf state. Making smarter choices, however, can lower the costs of imported materials. One way of doing this is by establishing trading alliances with countries located close to Qatar. Another approach is to import raw materials and later process them locally. “One should

“We have tried to maximise the use of local materials but unfortunately the Gulf states do not have a lot of local materials.”

2015 | QCN YEARBOOK | 131

real estate & development

For the Msheireb Downtown project, the company is aiming to use locally-sourced materials in order to avoid international price pressures.

“The [material] prices will be under pressure because of the exponential growth and construction in this area.”

132 | QCN YEARBOOK | 2015

distinguish between raw material naturally available and the way that we process that raw material to ensure that we have a good product to go into the infrastructure project. From a manufacturing capacity, I think Qatar is doing extremely well. On the availability of raw material, this is natural, just like we have a lot of gas and oil and others do not have it,” says Al Mehshadi. Regardless of the nature of building materials Qatar imports, the country’s dependence on imported products makes it prone to international price pressures. Qatar has already been forecast to experience increasing construction inflation because of escalating material prices, shortage of labour and immovable deadlines among other factors. Summarising the trend, Al Mehshadi says, “The prices will be under pressure because of the exponential growth and construction in this area.” He adds that another challenge would be that of sourcing. “We will also have a sourcing challenge. So, we have to ensure that we have a good control on the material supply and the supply chain altogether. It is not only material that will be somewhat challenging, but also the availability

of the right resources and the right calibre of people to help us run all the projects.”

Doha’s architectural legacy

Once the project’s first phase is near completion, Msheireb Properties will have to delve into the real estate details of the property for tenants and possibly, buyers. Hinting that Msheireb Downtown will have a rental range comparable to Doha’s existing rent band, Al Mehshadi says, “We are evaluating the numbers now, so I cannot tell you exactly. But I think Msheireb is a project within Doha and it will be matching the prices in Doha.” With a combination of tall and flat structures, where does Msheireb Downtown stand on Doha’s architectural map? “You don’t expect the city to be totally flat. Certain areas are high and some areas are flat. This should be part of the urban planning of a city,” says Al Mehshadi, who foresees Doha expanding further outwards. Explaining the ongoing evolution of the city, he says, “Doha is starting to grow. In the old days, we used to have a distance between Wakrah and Doha. Now they

interview

are more or less connected. You will see things changing towards Al Khor. Salwa Road is also being developed… We have a lot of land available to further develop.” Just like Msheireb is a mix of tall and flat structures, Al Mehshadi imagines Qatar’s ideal urbanisation with a variety of structures. “Qatar is not fully filled with buildings. We still have ample room to grow, expand and construct. And I don’t think that it is fair to have a full country flat in this modern [age],” says Al Mehshadi, adding that similar projects are being planned across Qatar, “We are evaluating options on projects. The design is being looked into, the development is being looked into. We don’t want to announce yet because the definition of the project is not yet final.” Regardless of where Msheireb Downtown falls on the rental range, or how it fits into Doha’s architectural map, Al Mehshadi is positive about the project’s prospects once it opens doors for tenants. “The attractiveness of the project has been seen from day one. You have the location, you have a lot of unique selling points to this project and a lot of people are interested in being part of it,” he concludes.

Msheireb Downtown project is designed in such a way that the flat buildings are at the front, while the majority of high-rise buildings are at the back. Pictured here is a model of Msheireb Downtown project displayed at Cityscape Qatar 2014.

Once complete, Msheireb Downtown Doha will feature the world’s largest collection of certified green buildings.

2015 | QCN YEARBOOK | 133

real feature estate story & development

According to Nick Witty, director, real estate, Deloitte, significant annual increases are unsustainable in certain sectors and as such, landlords may need to adjust their pricing strategies.

Qatar is an emerging real estate market backed by a strong government and extremely positive economic fundamentals

According to Nick Witty, director, real estate, Deloitte, significant rental increases on an annual basis are unsustainable in certain real estate subsectors. Landlords may need to adjust their pricing strategies if they are to secure tenants and retain an acceptable level of rental income. What are some key trends in Qatar’s real estate? A significant volume of development activity in Qatar is speculative in nature, meaning that construction commences with no tenant necessarily signed up at that time. During the construction period and post practical completion, a ‘letting’ agent is appointed to attract and sign up tenants, but there is always a risk that the development in question remains vacant for a period of time. While approximately 10 years ago, the market was relatively immature and the limited new product was relatively easy to lease, today the market has matured significantly and, as such, tenants have more choice and are in many cases more discerning. As a consequence, I envisage developers become far more end-user focused, whereby the functionality of the building will be more important than the form (that is, the external appearance), so they will build with this in mind in an attempt to secure quality tenants for longer periods of time. Currently, there are about 13 new malls under construction in Doha, which will add an additional 1.3 million square metres (sqm) to the existing retail supply of approximately 712,000 sqm by the end of 2017, assuming they are delivered on time. The more successful developments will be those that have carefully thought out tenant mix plans, offering a wide choice to the shopper, but equally those that have been designed with both the shopper and retailer in mind. The developments that do not match these criteria will struggle. In the office sector, there is significant new supply coming up to 2018, which will deliver approximately 2.3 million sqm. In this case, the requirements of the tenant are imperative, which include a high volume of car

134 | QCN YEARBOOK | 2015

parking, flexible floor plates, a high quality IT backbone, etcetera. As with retail, those buildings that do not match these requirements will struggle and may be forced to offer discounted rents to secure secondary tenants.

Where do you see rents going in all four subsectors? How likely is a rental freeze in the residential sector? Irrespective of the projected longer-term oversupply, it is unlikely that rental levels will abate much in the short term in any of the subsectors, simply because there is short-term demand as a result of the significant economic diversification referred to above. Qatar has been identified as one of the most expensive locations to live in the Gulf Cooperation Council (GCC) and many expatriate residents have to subsidise their housing allowances. Clearly, significant annual increases are unsustainable in certain sectors and as such, landlords may need to adjust their pricing strategies if they are to secure tenants and retain an acceptable level of rental income. Notably, an Emiri Decree issued in Q1 2014 effectively capped retail rents whereby retailers were granted a one-year extension of their existing leases on the same terms and conditions. This type of initiative suggests that the government is aware of property market issues and is prepared to react if they feel necessary.

What other measures do you think Qatar can take to relieve rent pressures? Rents are generally market driven and when tenants cannot afford a particular product, they will naturally migrate to a different, more affordable one. This will create different market tiers across all use classes – prime, secondary and tertiary.

500,000 Number of people The Pearl-Qatar and Lusail will accommodate once the developments are complete.

“An Emiri Decree in Q1 2014 effectively capped retail rents, [which suggests] that the government is aware of property market issues and is prepared to react if they feel necessary.”

industry insights

“Qatar has been identified as one of the most expensive locations to live in the Gulf Cooperation Council and many expatriate residents have to subsidise their housing allowances.”

Given the release of additional units on Qanat Quartier at The Pearl-Qatar, the level of demand will have to increase significantly. There are a total of 60 towers planned in the Pearl-Qatar. More than 20 of those are currently inhabitable or near completion and the majority are not fully occupied.

In the event landlords cannot lease their prime product due to the affordability of the tenant and they are experiencing high levels of vacancy, by default, they are most likely to reduce their rents. While this may take time, this balance of supply, demand and pricing is likely to take effect. Clearly the challenge will be whether tenants have an option, other than high-rented accommodation, and whether they are prepared to move down a tier, only time will tell.

Which real estate subsector, in your opinion, will see the highest level of competition in Qatar in the near future? All sectors are increasing supply, but high-end residential is likely to face the most competition. There are a total of 60 towers planned in The Pearl-Qatar. Approximately 24 of those are currently inhabitable or near completion and the majority are not fully occupied. Given the release of additional units on Qanat Quartier and the ongoing development of residential within the Foxhills District of Lusail, the level of demand will have to increase significantly. Lusail and The Pearl-Qatar, when developed, will provide accommodation for more than 500,000 people.

Is Qatar’s real estate market any different from the rest of the Gulf? Each GCC market has its own characteristics. Following the boom period up until 2009, the majority of these markets were mainly led by supply. However, following the global financial crisis, they have had to adapt. Qatar should continue to work on the development of a sustainable market over the short to medium term, that matches demand yet attracts the requisite number of tourists, businesses and others to ensure the economy grows at a reasonable pace.

How do you see the buying trend for property investors? Mature international investors that invest in real estate such as pension funds, hedge funds, etcetera, are very selective and generally risk averse. If we concentrate on the office and retail sector, in most cases, they have to meet certain criteria which can only be met in more mature markets. Further, the global financial crisis has meant a correction in their investment parameters and in many cases, they have retrenched geographically to what they consider ‘safe havens’. Currently, Qatar is an emerging real estate market backed by a strong government and extremely positive economic fundamentals. As the real estate market matures, and international developers regain confidence in investing abroad, it is likely that Qatar will be on their radars.

What are the factors discouraging foreign investments? It is not so much an issue of Qatar’s market as it is an issue of the confidence, strength and appetite of foreign investors. Many have had their ‘fingers burned’ during the boom period and are now in a period of consolidation. Clearly, Qatar will need to ensure it is competitive in relation to other GCC states if it is to be considered by foreign investors; and this may take the form of additional free trade zones, and more detailed landlord and tenant legislation. This is likely to evolve over time and be considered very carefully before implementation.

Of the real estate developments under construction in Qatar, which ones would be most attractive? Dealing first of all with the residential sector, I believe The Pearl-Qatar will continue to attract interest from tenants and buyers alike for a variety of reasons. Although it is still under construction, it is accessible and sections of it are well established, benefitting from convenience shopping, restaurants, a cinema complex, good-quality amenities within the towers themselves and reasonable maintenance of the common areas. From a retail perspective, one of the most attractive propositions will be Doha Festival City scheduled to complete in 2015. Comprising a retail and entertainment hub, incorporating business and hospitality facilities, motor showrooms and a theme park, it is likely to become the major retail destination in Qatar and its first regional mall, given its significant critical mass and ease of access.

What are some common disputes in Qatar’s real estate? The most common disputes have undoubtedly related to the timely completion and handover of projects, both residential and commercial, by developers to end users across the region.

Do Qatari nationals prefer to invest in local or foreign real estate? Historically, Qataris have been keen to invest at home for a variety of reasons, but many local Qatari investors are now seeking to mitigate the risk of concentrating a portfolio in a single geography by looking further afield, and favoured locations are the United Kingdom, France, Germany, the United States and parts of the Far East.

2015 | QCN YEARBOOK | 135

QCN is international

International Sales Representatives Asia Sonney Media Networks Tel: +852-2783-1603 / +8522151-2351 E-mail : hemant@sonneymedia.com

QCN currently has a growing network of international media sales representatives across numerous jurisdictions. To reach Qatarâ&#x20AC;&#x2122;s thriving construction market from any location, please contact your closest representative to inquire about advertising in QCN, Qatarâ&#x20AC;&#x2122;s Construction Magazine.

For sales enquiries please contact: International Sales Director:

Julia Toon

Tel: +974 66880228 E-mail: j.toon@firefly-me.com United Arab Emirates Senior Advertising Manager UAE :

Nesreen Shalaby

Tel: +971 50 719 9707 E-mail: n.shalaby@urjuan-me.com Qatar Head of Business Sales:

Manu Parmar

Tel: +974 33325038 E-mail: m.parmar@firefly-me.com

India Media Star Pvt Ltd Tel: +91 22 42202103 E-mail: ravi@mediastar.co.in Australia & New Zealand The Media Machine Tel: +61 89 447 2734 E-mail: okeeffekev@bigpond.com Germany IMV Internationale Medien Vermarktung GmbH Tel: +49 8151 550 8959 E-mail: w.jaeger@imv-media.com Turkey Media Ltd Tel: +90 212 275 84 33 E-mail: tanbilge@medialtd.com.tr United Kingdom & Ireland Smyth International Media Representatives Tel: +44 (0) 208 446 6400 E-mail : jo@smyth-international.com

France Mediactiv Tel : +331 5688 2080 E-mail : info@mediactiv.com Switzerland Mediactiv Tel : +41 22 779 1289 E-mail : info@mediactiv.com Italy Mediactiv Tel : +39 02 58 322149 E-mail : info@mediactiv.com Benelux Mediactiv Tel : +32 2 335 1063 E-mail : info@mediactiv.com Seoul, Korea YJP & Valued Media Co., Ltd Tel: +82-2-3789-6888 E-mail : hi@YJPvm.kr USA WorldMedia Tel: +1-212-244-5610 E-mail: melissaworrell@worldmediaonline.com

PREMIUM Yo u r p u b l i c a t i o n s p a r t n e r

Introducing... Firefly Premium The custom print and digital media publishing division of Firefly Communications. Firefly Premium produce quality bespoke and contract publications for a top echelon of corporate companies in Qatar. Specialising in: ➤ ➤ ➤ ➤

PRINT MAGAZINES COMPANY NEWSLETTERS DIGITAL PUBLICATIONS E-NEWSLETTERS

➤ ➤

PDF READERS AND ELECTRONIC MAGAZINES COMMEMORATIVE AND COFFEE TABLE BOOKS

Let Firefly Premium find a solution for all your print or electronic publishing needs. Underpinned by professional personal customer service and world-class editorial, design and production services.

Firefly Premium FOR MORE INFORMATION CALL: +974 44340630 OR EMAIL : PREMIUM@FIREFLY-ME.COM

www.QatarTenders.com Tender Name

Description

Client

FEES (USD)

Closing (m/d/y)

Mobile Laboratories and Testing Equipment

Design, supply, installation and commissioning of mobile laboratories and testing equipment

Public Works Authority (Ashghal)

412

5/26/15

Gas Detectors

Engineering, procurement, construction and installation for installation of flammable and toxic gas detectors

Qatar Petroleum

137

5/24/15

Calibration Services

Provision of calibration verification of electromagnetic flow metres for various drainage pumping stations

Public Works Authority ASHGHAL (Qatar)

137

5/21/15

Consutlancy Services

Consultancy services for preparing Water Resources Policy and updating/developing the National Strategy of Water Resources

Qatar General Electricity & Water Corporation (Kahramaa)

275

5/21/15

Dining Room Construction

Design and construction of a dining room

Aspire Foundation

5/19/15

Street Light Poles

Supply and delivery of street light poles

Aspire Foundation

5/19/15

Wooden Fence

Design, supply, delivery and installation of wooden fence

Aspire Foundation

5/19/15

Roads, Infrastructure & Landscaping Works

Design and build of roads, infrastructure and landscaping of Al Wakrah Logistics City

Manateq, Qatar

2747

5/19/15

Cooling Tower Drift Eliminators

Supply, delivery, installation, testing and commissioning of cooling tower drift eliminators

Aspire Foundation

5/17/15

White Steel Barriers & Fence Barriers

Collection, design, fabrication, modification and delivery of existing white steel barriers and supply, fabrication, delivery and installation of fence barriers

Aspire Foundation

5/17/15

Precast Concrete Wall Shelters Remaining Works

Completion of remaining works of precast concrete wall Qatar Petroleum shelters at various stations

137

5/17/15

Laboratory Analytical Services

Provision of laboratory analytical services for HSE environment

Qatar Aluminium Company Ltd. (Qatalum)

5/12/15

Furniture

Fabrication, supply and installation of furniture for industrial training rooms

Qatar Aluminium Company Ltd. (Qatalum)

5/12/15

2015 | QCN YEARBOOK | 139

Tender Name

Description

Client

Architectural Design and Consultancy Services

Provision of architectural design and consultancy services

Qatar Foundation

Sewerage Works

Carrying out miscellaneous house sewerage connection Public Works Authority works (Ashghal)

FTC Filter Reactors Refurbishment

Refurbishment of FTC filter reactors

Online Leak Sealing

FEES (USD)

Closing (m/d/y)

275

5/11/15

275

5/10/15

Qatar Aluminium Company Ltd. (Qatalum)

5/10/15

Call-off contract for online leak sealing at various locations

Qatar Petroleum

137

5/10/15

Sewerage Works

Carrying out property sewerage connection works

Public Works Authority (Ashghal)

206

5/7/15

Professional Design & Construction Supervision Consultancy Services

Provision of professional design and construction supervision consultancy services

Katara Hospitality

316

5/7/15

HAZOP Study Services

Contract for HAZOP study

Oryx GTL

137

5/6/15

Audio/Video System

Design, supply, delivery, installation and commissioning of banquet hall's audio/video system

The Torch Doha

137

5/5/15

Police College Construction

Execution of Police College

Ministry of Interior, Qatar

1374

5/4/15

General Scaffolding Works

Carrying out general scaffolding works

Qatar Aluminium Company Ltd. (Qatalum)

275

5/3/15

General Civil & Maintenance Works

Carrying out general civil and maintenance works

Qatar Aluminium Company Ltd. (Qatalum)

275

5/3/15

Fire Suppression System Construction

Design, engineering, supply, construction, installation, mechanical completion and commissioning of Fire Suppression System

Qatar Aluminium Company Ltd. (Qatalum)

137

5/3/15

Cathodic Protection System

Provision of cathodic protection system for waste water RasGas Company injection well casings Limited

Asphalting Works

Asphalting of ASP lay-down area

140 | QCN YEARBOOK | 2015

Qatar Aluminium Company Ltd. (Qatalum)

137

5/3/15 5/3/15