SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT
Construction An ITP Business Publication
WEEK
CONSTRUCTIONWEEKONLINE.COM
MAY 23–29, 2009 [273]
NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST
INSIDE NEWS
Saudi Government reforms to attract foreign investment PAGE 11
ANALYSIS
Is it time for the construction industry to focus on KSA? PAGE 16
FACE TO FACE
Industry experts discuss Saudi’s sponsorship system PAGE 18
EXCLUSIVE
SAUDI’S SUPER SIZED
SUCCESS
DEPUTY MINISTER FOR TOWN PLANNING URGES FOREIGN FIRMS TO SET UP IN THE KINGDOM Dr Abdulrahman Al Shaikh
SAUDI ARABIA SPECIAL • SAUDI ARABIA SPECIAL • SAUDI ARABIA SPECIAL
10 TO KNOW
Getting started in KSA? CW digs out suppliers to know PAGE 42
CITY FOCUS
The latest projects, news and tenders from Jeddah, KSA PAGE 52
CONTENTS MAY 23-29, 2009 | ISSUE 273 14
20
FEATURES 20 EXCLUSIVE INTERVIEW Deputy minister for town planning Dr Abdulrahman Al Shaikh says KSA is the place to be in.
22 SPECIAL REPORT CW looks at the benefits of free zones.
29 SAUDI 10 TO KNOW CW draws up a list of 10 people in Saudi Arabia that you should consider taking out for a coffee.
16
32 SITE REPORT 22
Saudi Arabia editor Benjamin Millington reports from the 18th floor of Jeddah Gate.
DIRECTORY 40 SHOWCASE 42 TOP 10 KSA SUPPLIERS 44 PROJECTS 46 TENDERS 48 SPECIALIST SERVICES
REGULARS
29 32
2 ONLINE 4 MAIL
FRONT 11 SAUDI GOV REFORMS TO ATTRACT FOREIGN INVESTMENTS Saudi Arabia is looking to soften regulations governing foreign land ownership, which could boost construction in the Kindom.
12 CONSTRUCTION WEEK SAUDI ARABIA CONFERENCE NEWS Extensive coverage from our conference that took place in Jeddah last week. News, updates and people who were spotted at the event.
14 NEWS IN PICS Topical images with the latest news.
BACK 52 CITY FOCUS 15 EVENTS Industry dates for your diary.
16 KSA ANALYSIS
The latest projects, news and tenders from Jeddah, Saudi Arabia.
54 CONSTRUCT SAFE
Is Saudi Arabia the place to be?
The industry’s very own comic strip on health & safety best practices.
18 FACE TO FACE
48 DIALOGUE
Industry experts discuss the current system of private sponsorship.
GCLA’s Geoff Sanderson tells us why moving to Saudi Arabia was a good idea.
MAY 23–29, 2009 CONSTRUCTION WEEK
1
ONLINE
www.ConstructionWEEKonline.com MOST POPULAR DEPA SAYS WORKING ON BURJ DUBAI A ‘NIGHTMARE’ EMAAR PROPERTIES TO RECRUIT 1600 NEW STAFF 10 BIGGEST INFRASTRUCTURE CONTRACTS IN KSA GTCC SCOOPS US $109MN ABU DHABI CONTRACT
HAVE YOUR SAY JOIN THE DISCUSSION
Scores of disgruntled investors have spoken out against Damac following last week’s interview with its CEO Peter Riddoch, find out what they had to say and post your comments.
ONLINE POLL IN PICTURES: KNOWLEDGE ECONOMIC CITY The US $8 billion development in Madinah is one of Saudi Arabia’s four economic city projects. Built on 4.8 million m² of land and incorporating 8 million m² of built-up space, officials say it will generate some 20,000 local jobs once complete. See a selection of images online at www.ConstructionWeekOnline.com
FEATURES Video
KING ABDULLAH ECONOMIC CITY Watch our clip for a complete overview of this multi billion dollar mega project in Saudi Arabia.
LAW 13 AMENDMENT Mohammed Kamal of Lovells’ asks Emad Farouq, senior legal counsel of the Dubai Land Department about the law’s implications.
2
CONSTRUCTION WEEK MAY 23–29, 2009
41.67% 41.67% 11.11% 5.56% There are more contracts due to government projects
Oil money feeds construction Facilities management
2009 AWARDS Find out who the winners are in this year’s award ceremony held in Dubai on Tuesday. Comment
Construction
WHY IS KSA THE PLACE TO BE FOR CONSTRUCTION FIRMS?
FIRE SAFETY Ali Sharif of Gulf International Trading Group explains the importance of choosing the right materials.
It’s an unexplored region so a less congested market
Better laws and regulations
TO VOTE IN THIS WEEK’S SPOT POLL GO TO www.ConstructionWEEKonline.com
RE: BAHRAIN LABOUR FEES WILL STAY If sufficient notice is given then these fees should be factored into the cost and then passed on to the customer. If they are unable to do this then the entire cost strategy has to be reviewed and the business has to move fast on to other areas of trade.
ROSANNE
RE: DEPA SAYS WORKING ON BURJ DUBAI A ‘NIGHTMARE’ If a project has become successful, people must thank the whole team who worked on it. The hardship of labourers must be understood by the leaders sitting in their air conditioned offices.
RE: PETER RIDDOCH ON THE RECORD
RE: SAADIYAT LABOUR CAMP SET TO OPEN
Lake View was handed over in 2008? That’s news to all owners in Lake View. The area variation law is entitled Article 12 of Law 13 of 2008. The clue is in the title - this law came out before handover and applies to our contract. Regardless of the law, Damac never provided any proof to customers; they just demanded the payment with threats of penalties if payment wasn’t made promptly. The final straw is that even if you pay Damac all payments they still won’t give you your keys until you voluntarily sign a letter of discharge and adherence meaning you have no legal comeback at all.
KHALID ELMANDOUH
Well it’s about time that we heard something positive about the progress of the developing GCC countries. It isn’t all doom and gloom and as the article states – the downturn has created some significant opportunities for the construction world including a drop in building material prices, and surplus capacities in equipment and human capital.
man behind the world’s tallest success.
RE: ARE RECORDBREAKING PROJECTS WRONG? I think in the current market scenario, sustainability of a project is more important, instead of going in for megasize projects. Developers should first concentrate on completing the present ones. A small suggestion - do not go too fast. CLARENCE LEWIS
JOEL
RE: PALISADES IS ‘GOING AHEAD’ When will the development start? This is unacceptable. I have lodged a complaint with Rera.
JITENDRA
CHARLES A
Depa should be proud of building such an iconic tower even though millions of obstacles must be faced. If I was head of Depa, I would tell the world that I am the
WELL DONE The Construction Week website is very informative. All relevant data is available for readers to view. RANA BABUR MANZOOR
GULAMABBAS KHALFAN
ZUHAIR BAGHDADWALA
I wish to thank David Sharpe and his team for delivering the project on time.
RE: KSA BENEFITS FROM RECESSION
projects which are not viable. It’s a very cumbersome process for investors to get back their hard earned money from the greedy developers and I request the government and Rera to intervene and give some confidence back to the investors.
RE: DUBAI COMMITTEE WILL SCRAP ‘UNVIABLE’ PROJECTS I personally believe that this step should have been taken a long time ago - before commencing on any project. Rera should have reviewed each proposal and then allowed the project to take off. It will take a long time for this company to get its confidence back and I suggest that people should be paid back immediately for all those
ANON
RE: SAUDI PLANS TO BUILD 1MN HOMES If this article is right in saying that Saudi Arabia’s population is growing by 2.5% a year and 65% of families don’t have a home then why is Saudi only building one million homes? Surely the country will need a lot more than that? RICHARD WRIGHT
WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email editor@ConstructionWeekOnline.com. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest Middle East business articles. The opinions expressed in this section are of particular individuals and are in no way a reflection of the publisher’s views.
4
CONSTRUCTION WEEK MAY 23–29, 2009
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FOREWORD
SAUDI ARABIA. WOULD YOU?
“SAUDI ARABIA ISN’T REFERRED TO AS THE ‘SLEEPING GIANT’ FOR NOTHING”
You know the feeling when you’ve taken a big bite out of your burger, and just then you’re asked a question? On behalf of the entire team here at the Construction Week towers, that’s how we’re feeling – frustrated. There’s so much happening in Saudi Arabia and we can’t convey all of it soon enough. Last week, I only touched on the success of the Construction Week Saudi Arabia Conference, but in this issue you’ll see what I’d left out – enough to dedicate an entire edition to KSA by creating a Saudi Arabia Special filled with pertinent news, analyses and great decision making information from the Kingdom. In fact, we have so much news left over that we decided to create a special online section to include it all. Log into www. ConstructionWeekOnline.com/SaudiArabia. As you’ll see in the following pages, our Saudi Arabia editor Benjamin Millington met up with many industry bigwigs in Riyadh and Jeddah, and at our conference, to get a feel of how things are on the ground there. And from what I hear, it looks like Saudi is on the brink of a new era. With the Saudi government bending backwards to attract foreign investment, it would seem a little strange to not, at least, consider setting up in the Kingdom. In an interview with the deputy minister of town planning, Dr Abdulrahman Al Shaikh, we learn that the Saudi government is working on reforming many investment and ownership laws that are now being seen as outdated – much to the joy of foreign, and quite a few Saudi, contractors and developers who have previously shied away from the Saudi market. An analysis on whether Saudi Arabia is the place to be, also gives us an insight into the current atmosphere of change that exists in the country. With opportunities in education – construction of the Noura Bint Abdulrahman University for Women in Riyadh, tourism – 45.3 million tourists are expected to be visiting Saudi Arabia per year by 2020 with 50,000 hotel rooms scheduled to be constructed and the construction of six economic cities, work seems to be in abundance. Saudi Arabia isn’t referred to as the “sleeping giant” for nothing. It’s amazing how accurate that phrase is because it insinuates an awakening. And it’s better to be prepared for when that sleeping giant begins coming round, which could be any time now.
CONRAD EGBERT EDITOR conrad.egbert@itp.com
WRITE TO THE EDITOR Please address your letters to: Construction Week, PO Box 500024, Dubai, UAE or email editor@ConstructionWeekOnline.com. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEK.online.com and air your views on any one of a number of the latest articles.
6
CONSTRUCTION WEEK MAY 23–29, 2009
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Registered at Dubai Media City ITP Business Publishing PO Box 500024, Dubai, United Arab Emirates TEL +971 4 435 6000 FAX +971 4 435 6080 Offices in Dubai & London
ITP BUSINESS PUBLISHING CEO Walid Akawi MANAGING DIRECTOR Neil Davies DEPUTY MANAGING DIRECTOR Matthew Southwell EDITORIAL DIRECTOR David Ingham VP SALES Wayne Lowery PUBLISHING DIRECTOR Jason Bowman EDITORIAL SENIOR GROUP EDITOR Stuart Matthews EDITOR Conrad Egbert TEL +971 4 435 6256, EMAIL conrad.egbert@itp.com ONLINE EDITOR Elsa Baxter TEL +971 4 435 6247, EMAIL elsa.baxter@itp.com BAHRAIN & SAUDI ARABIA EDITOR Benjamin Millington TEL +973 1 756 4111, EMAIL ben.millington@itp.com SENIOR REPORTER Jamie Stewart TEL +971 4 435 6268, EMAIL jamie.stewart@itp.com ASSISTANT EDITOR Sarah Blackman TEL +971 4 435 6278, EMAIL sarah.blackman@itp.com CONTRIBUTING EDITOR Alison Luke ADVERTISING PUBLISHING DIRECTOR Jason Bowman TEL +971 4 435 6344, EMAIL jason.bowman@itp.com COMMERCIAL DIRECTOR Raz Islam TEL +971 4 435 6371, EMAIL raz.islam@itp.com SENIOR ACCOUNT MANAGER Shishir Desai TEL +971 4 435 6375, EMAIL shishir.desai@itp.com KEY ACCOUNT MANAGER Philip Wharton TEL +971 4 435 6336, EMAIL philip.wharton@itp.com CLASSIFIED SALES EXECUTIVE Bipin Soneji TEL +971 4 435 6119, EMAIL bipin.soneji@itp.com ONLINE SALES MANAGER Scott Woodall TEL +971 4 435 6172, EMAIL scott.woodall@itp.com STUDIO GROUP ART EDITOR Daniel Prescott ART EDITOR Nadia Puma DIRECTOR OF PHOTOGRAPHY Sevag Davidian CHIEF PHOTOGRAPHER Nemanja Seslija SENIOR PHOTOGRAPHERS Alan Desiderio, Efraim Evidor, Khatuna Khutsishvili STAFF PHOTOGRAPHERS, Khaled Termanini, Thanos Lazopoulos, Jovana Obradovic, George Dipin, Leila Cranswick, Rajesh Raghav, Ruel Pableao PRODUCTION & DISTRIBUTION GROUP PRODUCTION MANAGER Kyle Smith PRODUCTION MANAGER Eleanor Zwanepoel PRODUCTION COORDINATOR Devaprakash VA MANAGING PICTURE EDITOR Patrick Littlejohn IMAGE RETOUCHER Emmalyn Robles DISTRIBUTION MANAGER Karima Ashwell DISTRIBUTION EXECUTIVE Nada Al Alami CIRCULATION HEAD OF CIRCULATION & DATABASE Gaurav Gulati MARKETING HEAD OF MARKETING Daniel Fewtrell EVENTS & CONFERENCES DIRECTOR, CONFERENCES, MARKETING & EVENTS Kimon Alexandrou COMMERCIAL DIRECTOR Michelle Dencer-Brown PRODUCER Oscar Wendel ITP DIGITAL DIRECTOR Peter Conmy ITP GROUP CHAIRMAN Andrew Neil MANAGING DIRECTOR Robert Serafin FINANCE DIRECTOR Toby Jay Spencer-Davies BOARD OF DIRECTORS KM Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin CORPORATE WEBSITE www.itp.com CIRCULATION CUSTOMER SERVICE TEL: +971 4 286 8559 WEB www.ConstructionWeekOnline.com ITPIMAGES Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com. SUBSCRIBE online at www.itp.com/subscriptions NOTICE The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication, which is provided for general use and may not be appropriate for the readers’ particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.
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12
>Topical images with the latest news
14
>Industry events on the horizon
15
> Analysis: Is Saudi Arabia the place to be?
16
> Face to face
18
PATRICK BAZ/AFP/GETTY IMAGES
FRONT
>Construction Week Saudi Arabia Conference news
A FURTHER SOFTENING OF LAWS GOVERNING FOREIGN INVESTMENT COULD OPEN THE GATEWAY INTO SAUDI ARABIA FOR GCC FIRMS.
GOV REFORMS TO ATTRACT FOREIGN INVESTMENT By Benjamin Millington and Jamie Stewart Saudi Arabia is looking to soften the rules that govern foreign ownership of land, a move that could lead to a flood of foreign investment in the Kingdom, Construction Week can reveal. A relaxation of Dubai’s foreign land ownership rules in 2002, is widely believed to have been one of the main reasons behind the emirate’s construction boom. Speaking to CW, deputy minister for town planning Dr Abdulrahman Al Shaikh said, “GCC residents are free to purchase land in Saudi Arabia.” “It is still not allowed for other foreigners, but these regulations are currently under study and I think things will change soon.” Saudi Arabia has recently been looking at relaxing foreign investment laws including those governing business partnerships.
“Previously no foreign investment was allowed unless [the investor] worked with a Saudi partner,” Al Shaikh said. “Now any foreigner can come into the country and start working like any local company. The government is realising the benefits of this. They are changing the regulations step by step.” Al Shaikh also conveyed the government’s willingness to welcome construction firms from across the GCC to Saudi Arabia. “I encourage contractors, consultants and developers to come to Saudi Arabia and look for opportunities,” he said. In line with Al Shaikh’s comments, a number of regional firms have expressed a desire to move into the Saudi Arabia construction market, to offset the slowdown they have had in other parts of the Middle East.
MAG Group Properties CEO Mohammed Nimer said last week, “We are looking at the chances [in Saudi Arabia] and have started doing so very seriously.” Nimer also revealed that the developer is looking at potential firms to partner with, should it decide to make the move. “We are studying the partnership options,” he said. “The idea of having a partner is very valid. It is safer, and lessens the risk.” Dubai-based Gulf Technical Construction Company (GTCC) has also expressed an interest in establishing itself in the Saudi Arabian market. “We currently have projects in Dubai and Abu Dhabi and we are hoping to expand into the GCC, specifically into Saudi Arabia, very soon,” GTCC executive director Saleh Muradweij said.
MAY 23–29, 2009 CONSTRUCTION WEEK
11
SAUDI ARABIA CONFERENCE NEWS JEDDAH STRATEGIC PLAN UNVEILED By Benjamin Millington Saudi Arabia has launched the Jeddah Strategic Plan, so far,” he said. “There’s a strong demand from the Sauwhich maps out the city’s development over the next di population for residential development and there’s 20 years. strong support from the government for Governor of Makkah Prince Khathese projects.” lid Al Faisal bin Abdulaziz Al Saud Jeddah is the second biggest city in inaugurated the plan last week. It Saudi Arabia and the gateway to the holy has been in development for the cities of Makkah and Madinah. past three years. Urban sprawl is a major problem for the The plan aims to reduce the numcity, putting pressure on infrastructure, ber of slums in Jeddah, build more which in turn has led to pollution and affordable housing and increase other social issues, Amir said. the density of the city, offering A shortage of property, especially affordable housing, has forced people to live in opportunities for developers in real estate. unplanned settlements, or slums. Currently there are 50 slums in the city, The news was announced at the Construction Week Saudi Arabia housing 1.2 million people. Conference by Jeddah Development The plan’s major projects include a new and Urban Regeneration Company city centre, which covers 12 million m² strategic planning and management on a vacant site next to old airport that of land and property vice president will provide a “downtown and dense Dr Abdulgader Amir. environment,” and the Jeddah Town “Real estate in Saudi Arabia Centre, announced last year, which covers is considered one of the biggest THE JEDDAH STRATEGIC PLAN WILL GUIDE 6 million m² and encompasses the historic untapped resources in the region THE CITY’S DEVELOPMENT FOR 20 YEARS. Old City area and some waterfront.
FOLKS IN QUOTES Landscape Architects principal Geoff Sanderson
How important is selecting the right sponsor when setting up in Saudi Arabia? It’s essential. You must find a sponsor that is compatible with your business and highly regarded in the market. Those that are hasty to set up might make very expensive mistakes. I met with so many companies that were only half-interested and their agenda didn’t match ours. So we took our time and made the right decision. Our sponsor, the Abunayyan Group, has opened so many doors and we have picked up four sizable projects in the past three months.
Infrastructure investment company Awnas CEO Dr Abdulrahman Alangari
What impact has the financial crisis had on Saudi Arabia’s construction industry? The main concern is the financing from banks. It’s causing a lot of problems for contractors and developers who want to go ahead with their plans, because the banks have limited their commitments. Even government projects have been affected and there’s no sign from the banks when this might ease.
Head of the founding group for the Saudi Green Building Council and architect Sultan AY Faden
What is the timeline for the formation of the Saudi Green Building Council? We plan to make 2009 our founding year and we expect to finish our own version of Leed within two to three years. Meanwhile we are establishing strategic partnerships with government and semi-government organisations in order to implement the green initiatives into their regulations. Saudi Arabia works in zones and each authority has control on certain districts and cities, so it is easier for us to implement our green initiatives through broad government bodies, rather than dealing with all the municipalities and sub municipalities.
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CONSTRUCTION WEEK MAY 23–29, 2009
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
GREEN BUILDING COUNCIL MAKING STRIDES
KSA FOCUS FOR JONES LANG LASALLE
The Saudi Green Building Council is planning to be fully operational with an office and staff members by July this year according to Sultan Faden, the head of the founding group. The non-profit organisation was approved by the government’s Presidency of Meteorology and Environment (PME) in January and is spending the first six months of the year fundraising. Speaking at the Construction Week Saudi Arabia Conference Faden said the group is currently forming strategic partnerships with various government and semi-government agencies to implement their green initiatives and regulations. One of the initiatives is a “Saudi version” of the green building rating system, Leed, which should be finialised within the next two to three years, said Faden. The group is also working towards “greening” the Kingdom’s building materials, in particular it plans to encourage the Kingdom’s 350 ready mix plants to add volcanic ash to their concrete.
Global real estate services firm Jones Lang LaSalle said 50% of all its construction activity underway in the Gulf region is coming out of Saudi Arabia. “It’s more than Abu Dhabi and it’s more than Dubai which is quite a big change when compared to the previous years,” the firm’s head of Saudi operations John Davies told participants at the Construction Week Saudi Arabia Conference. “It’s also an indication that your business will soon start experiencing a similar pattern, if not already.” Davies, who is based in Riyadh, outlined a number of key property trends in the Kingdom which included a focus on affordable housing amid a growing population, the cooling of speculative investments and an increase in international developers entering the market. He said it had been a tough year for obtaining project finance, but there are indications that banks may start lending again with the average loan deposit limit recently decreasing from 90% to 80%.
NEWS IN NUMBERS
PHIL DALGLISH, DIRECTOR MIDDLE EAST, BURO HAPPOLD.
GEOFF SANDERSON, PRINCIPAL, GREEN CONCEPTS
JOHN HARRIS, HEAD OF OPERATIONS FOR JONES LANG LASALLE.
DR ABDULRAHMAN ALANGARI, CEO, AWNAS
65% MCDC
Samba inks
SAR2
billion 1 million
housing finance agreement with Saudi Electricity Company
SPOTTED
new homes will be needed in Saudi Arabia over the next
5 years
Saudi Arabia’s population is
25 million
of families don’t own a home in KSA Population growth rate is
2.5% per year
net profits rose from
US $50.7 million to
$59.3
million in
12 months
16.8%
-a increase MAY 23–29, 2009 CONSTRUCTION WEEK
13
FRONT
NEWS IN PICS
ABOVE: Makkah Construction and Development Company’s (MCDC) year-on-year net profits rose 16.8% from US $50.7 million (SAR190 million) to $59.3 million over the past 12 months, the firm announced last week. MCDC was a founding member of the Jabal Omar Development Company, which cancelled its Western Gate Road (pictured) contract with Jadwa Investment three weeks ago. RIGHT: Abu Dhabi based Al Maabar has officially launched the next phase of Bab Al Bahr, a joint-venture project with L’Agence pour le Développement de Bouregreg. The launch was attended by HH Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, and His Royal Highness Prince Moulay Rachid of Morocco. FAR RIGHT: Al Fajer Properties has announced the completion of the superstructures for five of its nine towers in Jumeirah Lakes Towers area in Dubai. Once complete, the Jumeirah Business Centre towers will add 186,000m² of office space and an additional 8000m² of retail space to the community. BELOW: Al Hanoo Holding chairman Sheikh Abdullah bin Fahid Al Shakrah reviewed his firm’s experience in developing the Al Nujoom Islands projects (pictured) last week at the Infrastructure Development Summit MEA in Dubai. Al Shakrah said that resuming development work on projects is essential for pushing the economy towards recovery; to avoid being caught in a vicious economic circle.
14
CONSTRUCTION WEEK MAY 23–29, 2009
> For more pictures log on to www.ConstructionWEEKonline.com
EVENTS
Event:BuildingSustainabilityintotheMiddleEast Overview:Followinguponfromthesuccessof the2008ConferenceinDubai,Construction WeekishostingthesecondannualBuilding Sustainabilityevent.Theconferenceissettobe heldalongwithEmiratesGreenBuildingCouncil. Date: 27 May Venue: The Park Hyatt Dubai hotel Phone: + 971 4 4356125 Email: oscar.wendel@itp.com Website:www.itp.net/eventssustainability09
Event focus
CONSTRUCTION WEEK QATAR BRIEFING DATE: 4 JUNE VENUE: TO BE CONFIRMED PHONE: +971 4 435 6125 EMAIL: DILIP.MENON@ITP.COM WEBSITE: WWW.ITP.NET/EVENTS/ CWSEASONPASS The 2009 Construction Week Qatar Briefing is a timely update designed to offer delegates the relevant information needed to successfully do business in the country. Attendees will gain an update and forecast on the Qatar real estate market and hear discussions on investment opportunities in the hospitality sector. Other topics include accessing funding for projects – an overview of banking in Qatar; opportunities in real estate, tourism and business park developments; identifying partners, agents and distributors; and creating architecture in line with national heritage.
Event: Facilities Management Awards 2009 Overview:TheFMawardsceremonyaimsto helprecogniseandrewardthosewhohave madesignificantcontributionstotheindustry’s
development.Organisationsthathaveeducated andexcelled,plusindividualswhohavedelivered aboveandbeyondthecallofdutywillbeamong the winners. Date: 25 May Venue: The Westin, Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline. com/fmwards
Event: Construction Week Qatar Briefing Overview:Atimelyupdatedesignedtooffer delegatestherelevantinformationneeded to successfully do business in the country. Attendeeswillgainanupdateandforecast on the Qatar real estate market and hear discussionsoninvestmentopportunitiesin thehospitalitysector.Othertopicsinclude accessingandfundingforprojects-anoverwiew ofbankinginQatarandcreatingarchitecturein line with national heritage. Date: 4 June Venue: Sheraton Hotel, doha, Qatar Phone: +971 4 435 6125 Email: dilip.menon@itp.com Website:www.itp.net/events/cwseasonpass Event: Middle East Architect Awards Date: 30 September Venue: To be confirmed Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website:www.constructionweekonline/meaa Event:ConstructionWeekIraqBriefing2009 Overview:Enteringthisterritoryintheautumn of2009,ConstructionWeekwillholditsfirst conferenceonIraqconstructiontoexplore thestrategiesformarketentryandexpansion inrealestatedevelopmentandinfrastructure projects. If you are looking for large-scale and long-term business opportunities in Iraq, you will gain advantages by building relationships now. Date: 19-20 October Phone: +971 4 435 6125 Email: oscar.wendel@itp.com Website:www.itp.net/events/cwseasonpass Event: Construction Week Awards Date: 4 November Venue: To be confirmed Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline/ cwawards Event: MEP Awards Date: 9 December Venue: To be confirmed Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline/ mepawards
Event: Saudi Aircon 2009 Overview: International air conditioning, ventilation,heatingandrefrigerationshow. Venue: Riyadh Exhibition Centre Date: 24-26 May Phone: +966 1 454 1448 Email: esales@recexpo.com Website: www.eventseye.com Event: Project Lebanon 2009 Date: 16-19 June Email: arabtourism@ifpexpo.com Website: www.ifpexpo.com Event:5thBuildAsiaInternationalExhibition and Conference. Date: 1-3 August Venue: Karachi Expo Centre, Pakistan Email: info@buildasia.net Event: Inter-build Jordan Date: 2-5 August Venue:AmmanInternationalMotorShowCenter Website: www.eventseye.com Event: HME 2009 Date: 4-6 August Venue:OmanInternationalExhibitionCentre Website: www.oite.com Event: Turkmen Construction - 2009 Date: 20-22 August Email: expo@online.tm Event: Saudi Build Venue: Riyadh Exhibition Centre Date: 4-7 October Email: esales@recexpo.com Phone: +966 1 454 1448 Event: CityScape Dubai Overview: International Property and development event. Venue:DubaiInternationalExhibitionCentre Date: 5-8 October Phone: +971 4 332 1000 Website: www.eventseye.com Event: SME Expo and conference 2009 Date: 27-29 October Venue:DubaiInternationalExhibitionCentre Phone: + 971 433 21000 Email: webmaster@dicec.ae Event:BuildingandConstructionExhibition Date: 21-27 November Venue: Kuwait International Fair Ground Website: www.kif.net Event: The Big 5 Overview:Massiveconstructionexhibitionfor the GCC and wider Middle East. Date: 23-26 November Venue:DubaiInternationalConventionand Exhibition Centre Website: www.the big5 exhibition.com
MAY 23–29, 2009 CONSTRUCTION WEEK
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ANALYSIS Land of opportunity WITH A SERIES OF FIVE YEAR DEVELOPMENT PLANS FUELLED BY HUGE PETROCHEMICAL INVESTMENTS, IS THE TIME RIGHT FOR THE CONSTRUCTION INDUSTRY TO BEGIN FOCUSING ON SAUDI ARABIA? By Jamie Stewart
In the Kingdom of Saudi Arabia, it is no less about the “O” word today, than it has been since the discovery of its vast oil reserves 60 years ago – the “O” word being opportunity. So in the midst of a worldwide recession, what is it about Saudi Arabia that allows opportunity to flourish despite the financial gloom elsewhere? Bahrain-based Arcapita investment director and Victory Heights general manager Yasser Abdulla is familiar with the concept of opportunity. Through Arcapita he has embarked on a number of ventures across the GCC establishing one-off JVs to develop specific real estate projects. Abdulla told Construction Week that Saudi Arabia is the place to be. “We see much potential for growth in Saudi Arabia, where the demographic creates a good demand for real estate,” Abdulla said. “It’s a natural market that will be there for the long term.”
Demographics Cityscape Saudi Arabia event director Deep Marwaha said last week that the market for residential development will design, plan and build more than a million homes over the next five years across the country to meet the needs of its populace. “With a population of 25 million people growing at 2.5% a year, Saudi Arabia is set to double its population in 28 years,” he said. “Forty per cent of Saudi nationals are under the age of 20 and 70% under 30, and 65% of families currently don’t own a home.” This growing population is a product of the booming wealth of the country, which is fuelled by petrochemical exports. According to US state department Bureau of Public Affairs, oil accounts for “more than 90% of the country’s exports and nearly 75% of government revenues.” Further, the bureau states, “proven reserves are estimated to about one quarter of world reserves.” As a result of petrodollars and high per-capita
THE US $50 BILLION KING ABDULLAH ECONOMIC CITY IS UNDER-CONSTRUCTION 100KM FROM JEDDAH.
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CONSTRUCTION WEEK MAY 23–29, 2009
ARCAPITA INVESTMENT DIRECTOR AND VICTORY HEIGHTS GENERAL MANAGER YASSER ABDULLA.
“IT’S A NATURAL MARKET THAT WILL BE THERE FOR THE LONG TERM”
GDP the population of Saudi Arabia began to boom in the 70s, which has resulted in today’s youthful demographic, most of whom will one day require a home, hence the construction potential. Education Opportunities also abound due to the developmental policies of the government of Saudi Arabia. A series of five year plans have been in place since 1970. The current plan, which covers 2005-2010, has a focus on economic diversification, education and the inclusion of women in society. An example of how such plans can lead to lucrative work for the construction industry is Noura Bint Abdu Rahman Univeristy for Women in Riyadh, the first university in the country exclusively for women. Work is split into three packages worth a combined total of US $11.5 billion (SAR43 billion). Two of these packages cover the buildings and associated works, while the third covers the infrastructure.
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
RMD KWIKFORM DIRECTOR JAMES DEWAR.
Tourism The 2005-2010 development plan also highlights tourism as a sector with the potential to further diversify the economy of the country. Supreme Tourism Commission secretary general and Saudi Commission for Tourism and Antiquities (SCTA) president Prince Sultan bin Salman bin Abdulaziz Al Saud outlined the country’s tourism development plans in the build up to the Arabian Travel Market earlier this month. The Prince said that 45.3 million tourists will be visiting Saudi Arabia annually by 2020 with a combined expenditure of $21.4 billion. In order to accommodate such numbers, plans have already been enacted to construct 50,000 hotel rooms and 74,000 housing units. The SCTA signed 17 new contracts worth $5.3 million in the first quarter of 2009 alone with Saudi Arabian firms to undertake works on a number of tourism projects. Budget As a mark of the government’s commitment to its developmental plans, $128 billion of expenditure was allocated in Saudi Arabia’s 2009 budget, including $9.3 billion on water, agriculture and infrastructure projects. This commitment came despite a predicted budgetary deficit of $4.5 billion, which is further proof of the willingness of the government to press on with its construction
SAUDI ARABIA BUDGET EXPENDITURE AND REVENUE SINCE 2000 (JADWA INVESTMENT).
plans. In addition, Saudi Arabia was rated top of all GCC countries in the Doing Business 2009 report released by the World Bank and the International Finance Corporation. The ranking is an indication of the pace of reform in each country listed. Saudi Arabia is reforming fast, and doing business is becoming easier. RMD Kwikform director James Dewar, who conducts business in all GCC markets, said the ease of doing business has improved “very much” in recent years due to government reform. “The opening of the Saudi Arabian General Investment Authority [in 2000], which has the sole purpose of making things more user friendly, certainly made the market more attractive,” he said. Outlook Construction in Saudi Arabia is driven by the government’s plans to diversify the country’s economy – the very same driving force that has been behind Dubai’s decadelong construction boom. But in Saudi Arabia, the boom is fuelled by an economic safety net – the guaranteed
income that lies in the generous helping of natural resources beneath the desert sands. Growth is happening right now. “We have identified three areas where we are going to be based – Jeddah, Riyadh and Al Khobar,” RMD Kwikform’s Dewar explains. “We have secured three out of five intended properties, and we have staff in place.” The firm is clearly gearing up for an increase in business in the Saudi Arabian market in the near future. A concrete sign of growth. Across the country, multi-billion dollar projects such as Jubail Two, the new industrial zone 8km west of the original Jubail One, will keep extracting wealth from the ground, which will then be channelled into housing, education and tourism projects, such as the $50 billion King Abdullah Economic City. All of this paves the way for fresh construction contracts in a variety of fields, from affordable housing to petrochemical mega-projects. Saudi Arabia is fast becoming the GCC’s modern day land of opportunity.
MAY 23–29, 2009 CONSTRUCTION WEEK
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FRONT FACE-TO-FACE
ESSAM KALTHOUM
DR ABDULQADER AMIR
Al Shamiyah Urban Development Company CEO
VP, strategic planning, Jeddah Development Company
Bahrain is to move to a system of sponsorship for migrant workers through recruitment agencies and Saudi Arabia has signaled its intention to follow suit. Our industry experts discuss the implications. WHAT IS YOUR OPINION ON THE CURRENT SYSTEM OF PRIVATE SPONSORSHIP? Many aspects of the current system are not fit for the stage of development that the country is in. It causes great injustice to imported labour, and it gives a deceiving element of competition to many businesses and industries. Also, it stands in the way of reforming the local labour market and transforming it to global standards. It is an obstacle in the face of true Saudisation.
The current Saudi Arabian sponsorship system is to some extent an outdated and bureaucratic process. It ties down the employee and restricts his movements, and also causes unnecessary work for the employee in coping with issues from arranging visas to approving a driving license. The process is particularly problematic for unskilled workers who find they have little in the way of rights without the employer’s input and decision.
HOW WOULD THE PROPOSED SHIFT TO SPONSORSHIP VIA RECRUITMENT AGENCIES AFFECT SAUDI ARABIAN BUSINESSES? Initially, it will increase the cost of labour. But once the local economy adjusts to that, the effects will be positive. The labour market will enjoy the benefit of a standard covering the quality and reliability of supply. The cost of labour in general will be normalised reflecting levels that will allow fair competition. Finally, it will help the country to eliminate a great source of injustice and unfairness.
Overall the benefit would be positive. However, for many of the large, world renowned western companies with trained HR staff who routinely handle employees at all levels in a considered and professional manner, this could be a negative move. It could effectively take much of the HR decision-making out of their hands and give it to a less experienced agency who do not understand the particular needs and processes of the company.
HOW WOULD THE PROPOSED SHIFT AFFECT THE SAUDI ARABIAN LABOUR MARKET? It would enhance the moral standard governing relationships between employers and employees, offering the worker more rights. At the same time, it would offer employers a higher level of quality and selectivity of the work force. Additionally, such a shift would bring a missing balance to the labour market. The current cost of labour is cheap. This is the main obstacle facing the true and effective Saudisation of many work force layers.
Overall, the shift to sponsorship by recruitment agencies would benefit the Saudi Arabian labour market in terms of it being seen as more transparent and overtly responsive to the needs of the employee. This is particularly true with respect to the lower-skilled employees and those working for individuals who are often at the mercy of an employer who may not consider, or even be aware, of individual infraction of the law.
WHY HAVE SOME GULF COUNTRIES REFUSED TO CONSIDER IMPLEMENTING THE SAME POLICY? Gulf States in general are slow to adopt changes. Plus, this issue has a substantial social impact, as it touches an area where many nationals are benefiting, either directly through positions such as drivers, or indirectly through the thousands of small to medium business establishments that use the private sponsorship system to maintain their labour supplies. It should not be long before all GCC states consider such a shift.
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Due to the current economic climate, some countries appear to be more concerned with finding ways to ensure employment for nationals, and to ensure the movement of Arab nationals who are seeking work from one state to another. Plus they appear to be trying to keep existing, but unemployed, expatriate workers in the country. Modification of the sponsorship system is perhaps seen as a subsequent issue to be discussed.
EXCLUSIVE INTERVIEW DR ABDULRAHMAN AL SHAIKH Man with a plan SAUDI ARABIA’S DEPUTY MINISTER FOR TOWN PLANNING DR ABDULRAHMAN AL SHAIKH DISCUSSES THE KINGDOM’S NATIONAL SPATIAL STRATEGY, THE ECONOMIC CITIES AND OFFERS ADVICE TO FOREIGN COMPANIES LOOKING TO ENTER THE MARKET By Benjamin Millington, photos by Rajesh Raghav What is KSA’s Spatial Strategy?
The Kingdom is very big, about eight times the size of the UK – it’s almost like a continent. With this vast area and a rapidly increasing population a national spatial strategy is essential or you cannot make all the right strategic decisions to control developments, the population and commercial activities, or direct them to the right places. So this national strategic plan was approved by royal decree about 15 years ago to create balanced development between regions, and within regions. It suggests which cities should be developed first and which resources devoted where. And what is the result of this strategy?
Based on the study, which we spent about ten years doing, the Kingdom was divided into 13 provinces, each with its own capital city and surrounding secondary cities. In each province we encourage industries that will utilise the local characteristics or resources of the area, some areas we promote agriculture, some mining industries and others petrochemicals industries. Following on from that we encourage establishing related downstream industries to allow the most efficient use of our resources. This is the way it works, but the implementation takes a very long time and we are facing many challenges. What is the biggest challenge?
The increase in population is a major challenge because we are now almost 26 million people with a population growth of something like 8% per annum. This creates uncontrolled expansions to cities and rapid growth of urban centres.
had to revise the spatial plan to fit them in. One important area of study was the effect these huge economic cities may have on neighbouring areas. We didn’t want to create a vacuum with the new cities pulling everybody out of the market. This was the main concern of the government and so based on our studies we suggested where the economic cities could be integrated. So there’ll be no gaps or huge differences between them, in fact they’ll help existing cities create more opportunities. Are these economic cities needed?
Yes, these came with a strategic objective. The economic cities aim to create economic diversification and attract foreign investors and experts. We think it will provide valuable opportunities for securing a variety of modern, technical and commercial industries and help us move away from being an oil based economy. King Abdullah Economic City (KAEC) is already attracting billions of dollars from outside the Kingdom. Will all six economic cities be built?
Yes. They have been well planned by our foreign investment agencies, there are comprehensive feasibility studies, they have been approved by the higher authorities and the major component of its success is interest from foreign investors. Each city has its own unique character based on local resources. For example, in Jizan they are using aluminium industries as the core and in Hail they are using phosphate and other mines to form the core.
Do the six economic cities fit into the spatial plan?
Do Jubail and Yanbu industrial cities set a good example for how a city can be built around industry?
The economic cities came later and we
Absolutely. Jubail and Yanbu are very
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FAST FACTS Dr Abdulrahman Al Shaikh: • Is married with one son and three daughters • Enjoys walking, jogging, swimming and table tennis • Loves watching local and international football • Rates Dubai, Switzerland, Austria and Australia as his favourite holiday destinations • Says his job gives him joy because he’s contributing to the long term success of the Kingdom
successful stories. When they were started in the 1980s everybody was saying ‘these people are crazy, don’t bother doing it’ – everybody was gambling about its failure and now everybody is talking about its success. It proved to be the right decision at the right time. I know there are some people who have their doubts about the success of the economic cities, but this is the nature of people. I believe they will prevail, because the Kingdom’s economy and resources are sound and if it is the will of the government to support it, then it will go on. It is definitely benefiting from the experience of Jubail and Yanbu, but rather than being based around petrochemicals, each city has its own own core industry.
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
How is the government making it easier for foreign investors?
We are trying to ease the regulations for foreigners now and I can see a number of huge projects coming to Riyadh which have several foreign partners. Previously no foreign investment was allowed unless they had a Saudi Arabian partner. Now any foreigner can come and start working like any local company. The government is realising the benefits of this and changing regulations. Another thing is the softening of land ownership regulations. It was recently announced that GCC residents are free to purchase land here. It is still not allowed for other foreigners, but these rules are currently under study and changes are expected. Should foreign companies come here? POTENTIAL NATIONAL GROWTH CENTRES THAT THE GOVERNMENT OF SAUDI ARABIA IS FOCUSING ON.
Is there more risk associated with these industries than petrochemicals?
As with any project I think there is an element of risk. But when you study things well and believe it works then you should go ahead. This hasn’t been done in a day or two, it was carefully planned and the response from investors is very encouraging. Billions of dollars have been invested in these cities and I think it will prove to be a correct decision. What are the advantages of starting a city from scratch such as KAEC?
It gives you the chance to put in the right infrastructure and plan correctly. You can control future expansion and provide services from the start, utilising the resources that are available to that area in the right way.
from its services, then I think it will go ahead without major problems. How do you ensure that people come?
This is the challenge for all planners – how to make the city attractive to live in. A city is not just boxes and streets and offices, it is the place where you spend most of your life and must include attractive recreational areas. This is something that we are enforcing for all new plans coming from the private sector. We make sure they are providing green areas, entertainment areas, places
“WE ARE TRYING TO EASE THE REGULATIONS FOR FOREIGNERS [AND] NOW ANY FOREIGNER CAN COME AND START WORKING LIKE ANY LOCAL COMPANY.”
What can go wrong when starting a new city?
It’s not that it goes wrong, but when you start something from scratch you need to convince people to come to it and make them like it. It takes effort and time to get them used to it and to establish their own community and society. If it is close to a major city and can easily benefit
for people to meet socially and places for sport. In the past, people in Saudi Arabia haven’t liked parks, playgrounds, cafes or restaurants in their areas, but it is now becoming more common. The whole philosophy is changing here with people spending more time outside their homes and developers are starting to see this.
The Saudi market is very attractive. It’s the largest and strongest market in the region for real estate development. I encourage contractors, consultants and developers to come to Saudi Arabia and look for opportunities. Even with the financial crisis the Kingdom is still in a better position than most countries due to our good financial system. The budget that was announced last year was the biggest in the Kingdom’s history so there are still very good reasons for construction companies to come here. What would you say to foreign companies looking to move here?
We are encouraging investors and businessmen to get involved in complete projects or communities, not just land use. It is something that is gaining momentum and something that we will ease the regulations on. If an investor comes to us and says they want to make a complete project then we encourage them and give them a chance to do it. The atmosphere is very good for developers to come and look for such kinds of opportunities here. There is ground for these projects in Saudi Arabia and the buying power is strong in the Kingdom. Statistically many of the buyers in Dubai are Saudi; if developers were to give them something in their own country then they will respond.
MAY 23–29, 2009 CONSTRUCTION WEEK
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IN THE ZONE CONSTRUCTION WEEK TAKES A CLOSER LOOK AT SHARJAH’S FREE ZONES: WHAT ARE THE BENEFITS OF OPERATING IN THESE AREAS AND HOW DO CONSTRUCTION PROJECTS GAIN FROM THEIR EXISTENCE? By Alison Luke
C
ould Sharjah be the best place from where medium enterprises (SMEs). So it seems that whether a firm is to conduct your business in the Middle East? seeking to expand operations within the region or simply looking If news from the Special Economic Zones for more suppliers to meet the demands of project schedules and (SEZ) Forum held in the Emirate in mid- budgets, the continued success of the free zones is set to play a May is any indication of times ahead, then large part in the future of the construction industry. the answer may be yes. Incentives put in place by the government AL HAMRIYAH FREE ZONE ensured that foreign trade rose to US $17.2 billion (AED63 billion) Established in 1995, Al Hamriyah Free Zone began as an area of in 2008, according to reports from the Forum. In addition, Ali 15 million m2 and has since grown to more than 22 million m2. Salem Al Mahmoud, director general of the Economic Develop- Despite the current economic downturn, more than 100 trade licences ment Department in Sharjah reported that the industry sector were issued monthly in Q1 of 2009, which shows a reasonably contribution in the GDP increased from $1.5 billion in 2004 to sustained level of growth compared to 2008; an average of 125 $3.3 billion in 2007. The cost of setting up a business in Sharjah licences were issued monthly in the 2008 period. is less than in other Emirates and the The zone includes industrial and comfocus on industrialisation has turned it mercial facilities plus a 14m-deep water into a commercial centre with an annual THE FOCUS ON port and adjacent 7m-deep inner harbour, INDUSTRIALISATION HAS growth rate of 12%. The Emirate curwith scope for further expansion. It was TURNED SHARJAH INTO A the first zone in the world to win ISO rently accounts for more than 40% of COMMERCIAL CENTRE WITH AN 14001 certification for environmental all industrial activity in the UAE. ANNUAL GROWTH RATE OF 12% safety and has since been awarded ISO Among the major contributors to this success are the Emirate’s free zones, 9002 status for quality. which provide the base for many of the Most activities are permitted in the foreign firms that wish to invest and operate in the region. A Zone as long as they are environmentally friendly and meet local concept introduced by the UAE government to enable foreign regulations. investment without ties to local firms, the free zones are playFirms can lease pre-built warehouses, factories and offices or ing a vital part in the growth of the economy. The construction even lease industrial plots of land on which they can build taiindustry is benefiting from this in two ways: the ability to set lor-made facilities. Staff accommodation is also available within up in the UAE without altering their global company status and Al Hamriyah. operational methods; and secondly, the ease with which foreign Plans for the future development of prime property within the firms can operate in the free zones has meant a wider choice of zone include the construction of industrial plots that are sized international standard services and products are readily avail- in multiples of 5,000m2. Each plot can be developed by invesable in the local market. Two zones currently operate in Sharjah: Al Hamriya Free Zone and the Sharjah International Airport Free Zone (Saif). Both of which have reported large growth over the past few years, with WHAT IS A FREE ZONE? more expected. Reports from the SEZ Forum indicate a rise in industrial facilities within the zones from 180 in April 2001 to Free zones are trading areas that enable foreign investors to operate more than 2000 in mid-2008; investments rose from $500 mil- within a country while maintaining their international status and working procedures. They remove the need for the involvement of lion to $2 billion during the same period. And opportunities are set to grow further as it was announced local investors in their firms and ensure that 100% of profits are at the forum that in order to target further potential investors, maintained within the original firm. With benefits including tax-free Sharjah is planning to set up seven areas – including Construction trading, they are intended to encourage the investment of foreign World - within Saif and Al Hamriyah specifically for small and firms within the region and increase the overall economic growth.
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ADJACENT TO SHARJAH AIRPORT INTERNATIONAL AIRPORT, SAIF ZONE THAT WAS SET UP IN 1995, OFFERS WAREHOUSES SPANNING AN AREA OF 125M2 TO 600M2.
tors to meet their needs and up to 60% of the leased land can be developed. Leases are provided on the basis of a minimum five year term, with a fixed rate for this period. The maximum initial lease term is 25 years, although this can be renewed for a further 25 years.
LICENSE TYPES
SAIF ZONE The Sharjah Airport International Free Zone (Saif Zone) was set up in 1995 and now services more than 4150 companies from 91 countries. It covers an area of around 10km2 and a wide range of firms operate from the Zone, including manufacturers, consultants and contractors. Located adjacent to Sharjah International Airport, the Zone offers facilities including fully-furnished offices; 125m2,
Four types of license are available for firms operating within the zone: • Industrial — which allows the import of raw materials intended to manufacture, process or assemble a specified product; • Commercial — which allows the holder to import, export, sell, distribute and store specified items; • Service — which allows the firm to carry out specified services solely within the free zone; • National Industrial — which gives duty exemption on products imported into the AGCC States and provides the license holder with the same status as local or AGCC companies inside the UAE. SAIF ZONE NOW SERVICES AROUND 4150 COMPANIES FROM 91 COUNTRIES.
MAY 23–29, 2009 CONSTRUCTION WEEK
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OPERATING WITHIN SAIF To operate from within the Saif Zone, a company has to be incorporated. The legal status of the companies in the Zone are classified as follows: • Company branch; two options are available: branch of a foreign company or of a local company. • Free zone company (FZC): two or more can establish a FZC with a minimum capital of AED150,000. Normally a maximum of five shareholders is allowed; this can be increased to seven with approval from the Saif-Zone management. • Free Zone Establishment (FZE): an individual can establish a FZE with a minimum in Saif-Zone, therefore there is only one owner (shareholder), with a minimum capital of AED150,000.
250m2, 400m2 and 600m2 warehouses and staff accommodation. In addition, the freezone can also provide temporary storage facilities for its clients. Legal services, international couriers, traffic and licensing offices, workshops, access to 50 international banks, low-cost energy and labour, budget consultancy services and computer training are also offered. Processing of all documentation such as trade licenses and visas can be carried out on site, often within 24 hours if the required paperwork is provided. Again, the number of companies operating within Saif Zone is continuing to increase despite the current economic climate, although at a slower rate than previously. To date no construction industry-related firms have closed within the Zone, with most financial issues being restricted to the real estate sector firms.
Three main categories of trade licence are offered: industrial, which applies to manufacturing firms; commercial, which applies to those trading goods; and service. There are several sub-divisions within these categories, for example, under a commercial licence, firms can buy and sell three similar product lines, whereas in order to buy and sell an
FREE ZONE COMPANIES There are many firms operating within the Sharjah free zones that offer products and services for use in the construction industry, including the following:
CLIPSAL MIDDLE EAST
COMBISAFE GULF FZE
ONYX BUILDING SYSTEMS FZC
Operating in Saif Zone, Clipsal Middle East is the regional operation of the Australian electrical accessories firm. The firm offers products for industrial, commercial and domestic applications, with the Saif Zone head office handling marketing and technical support of 31 countries in the Middle East, including GCC, Levant, Africa and part of the Mediterranean. The firm houses and distributes more than 45,000 different products and has established different divisions including wiring accessories; industrial products, lighting; switchgear; energy and lighting management; and air inflation technology. http://clipsalmef.arabic-products.com
UK-based firm Combisafe is one of Europe’s leading suppliers of fall-safety systems. The firm has more than 20 years’ experience in providing total solutions for fall protection and can design and supply systemised safety solutions. Operating from Saif Zone, the firm’s product lines include the net barrier system, a flexible edge protection solution for roof construction. It has recently provided more than 850 steel mesh barriers, safety posts and attachments to the Ferrari Theme Park project on Yas Island, Abu Dhabi. www.combisafe.co.uk
Based in Saif Zone, Onyx Building Systems was formed as a specialised civil contracting company for the industrial sector. Intended to respond quickly to market demands it has been involved in several major projects. The Onyx Group also includes a manufacturing capability for aluminium and steel products including profiled sheets, composite panels and purlins. Its Saif Zone plant offering the preparation of detailed fabrication designs using AutoCAD Detailing Software in addition to traditional draughting techniques to design the required products prior to manufacture. www.onyxfzc.com
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THE BENEFITS OF FREE ZONES • • • • • •
100% company ownership (ie no need for local partnership) 100% exemption from income and corporate taxes 100% repatriation of capital and profits Fast issuing of trade license, often within 24 hours Exemption from commercial levies Locations are adjacent to bulk trading and transit areas such as airports or sea ports • Range of accommodation options offered on a lease basis • Simplified sponsorship and visa process for staff
unrestricted number of products a general trading licence will be required. Firms that gain a licence to operate within Saif Zone are guaranteed their premises for 25 years. As part of the contract, for the first five years there is no rental increase; the overall rent will rise by a maximum of 15% over the 25-year period, giving firms a financial advantage over those operating outside the freezone. New leases will be subject to new pricing structures. In general five staff visas are provided for a rented office space; the number provided to firms operating in areas such as warehouses is dependent on individual needs.
©Arup Sport
©Dubai Airports
©Dennis Guichard Photography
AN ARTIST’S RENDITION OF SAUDI ARABIA’S KING ABDULLAH ECONOMIC CITY.
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SAUDI ARABIA IS WORKING ON ESTABLISHING SIX ECONOMIC CITIES TO PROMOTE FOREIGN INVESTMENT.
• • • • • • •
King Abdullah Economic City Eastern Economic City Hail Economic City Talbuk Economic City Madinah Economic City Rabigh Economic City Jizan Economic City
It has also been reported that Al Abbassi Island, which is close to the Yanbu port, will be turned into a free zone, and the Yanbu Chamber of Commerce and Industry has appointed a consulting company to provide a feasibility study for the island.
FREE ZONE COMPANIES WS ATKINS & PARTNERS OVERSEAS Atkins is one of the world’s leading engineering and design consultancies. It is the largest engineering consultancy in the UK, the largest multi-disciplinary consultancy in Europe and the world’s eighth largest design firm. Based in Saif Zone, the firm is involved in the planning, design and enabling of complex capital projects throughout the Middle East. It has several specialist divisions, including
building design; building surveying; cost and project management; and development infrastructure. It has undertaken numerous high-profile projects in the region including the Bahrain World Trade Centre, Dubai Metro and the Burj Al Arab. www.atkinsglobal.com
WSP MIDDLE EAST With offices in Dubai, Abu Dhabi and Sharjah’s Saif Zone, WSP Middle East is one of the region’s fastest growing, multi-disciplinary
engineering consultancies. The firm currently employs around 850 staff and is a member of Fidic and a corporate member of Transparency International. Its disciplines include structural and building services, civil and environmental, plus the more specialised areas of high-rise, intelligent building design and fire engineering. Its project portfolio includes the Dubai World Trade Centre development and Mirdif Shopping Mall, Dubai. www.wspgroup.ae
M.S. AL-SUWAIDI GROUP www.suwaidi.com M.S. AL-SUWAIDI GROUP is one of the leading diversi ed Groups in Kingdom of Saudi Arabia with a number of Strategic Business Units (SBU) in its fold, Currently looking to recruit high caliber professionals for the following positions for its ag ship Industrial Project Services company (O&M, Construction, Scaffolding, Construction Equipment) based in Jubail, KSA. www.suwaidi-industrial.com
General Manager Construction Division Manager O & M Division Manager
Project Control Department Manager Marketing Manager Head – QA / QC / Project QA/QC
Contracts Administration Manager Senior Quantity Surveyor Senior Project Manager
Applicant should have at least 15-20 years of experience of which 5 years should have been similar position in large Construction / Oil & Gas, Petrochemicals/EPC /LSTK Projects. Bachelor Degree in Engineering with MBA is Preferable. Experience in Middle East / KSA preferred.
Apply in Con dence indicating the position you are applying for with relevant experience to; Email: shcrecruitment@alsuwaidi.com.sa / careers@alsuwaidi.com.sa Fax: +9663-6671855. Short listed candidates will be contacted for interview.
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1 0 P EO P L E TO KNOW IN SAUDI ARABIA IF YOU ARE LOOKING TO SET UP SHOP IN SAUDI ARABIA, ARE ALREADY PRESENT THERE OR ARE SIMPLY LOOKING TO ADD TO YOUR CONTACTS BOOK, CONSTRUCTION WEEK SUGGESTS 10 INDUSTRY BOSSES YOU MAY WANT TO MEET UP WITH, FOR A COFFEE OR TWO By Conrad Egbert and Benjamin Millington
ABDULGADER AMIR Role: Vice President – strategic planning Company: Jeddah Development and Urban Regeneration Company Place: Jeddah Amir is currently the vice president for the Jeddah Development Company. He assumed office in April 2007 as the vice mayor for Urban Planning for the Municipality of Jeddah, before which, he worked as its chief planner. Amir also taught at King Fahd University of Petroleum and Minerals in Dhahran, KSA, for over 10 years where he
headed two major departments – the city planning department and the Architecture department. Last week, he revealed a 20 year strategic plan for Jeddah. “We have been given a unique opportunity to invest on behalf of the government in rebuilding the city of Jeddah and increasing the standard of living for its residents. In doing so there will be many opportunities for developers, both Saudi and international, to undertake projects as part of the strategic plan.”
ABDULRAHMAN AL SHAIKH Role: Deputy Minister for town planning Company: Ministry for Municipalities and Rural Affairs Place: Riyadh Al Shaikh graduated as a civil engineer from King Saud University in Riyadh before undertaking his masters in engineering at Stanford University in California, US, and his PhD from the Imperial College of Science in London. Moving back to Saudi Arabia, Al Shaikh became a lecturer at King Saud University where he taught for 11 years and became the
chairman of the civil engineering department. Following this he joined the Ministry for Municipalities and Rural Affairs as the deputy mayor of Riyadh, a post which he occupied for six years. He then moved into his current role as deputy minister for town planning, a position he has occupied for the last four years. “The atmosphere is very good for developers to come and look for such kind of opportunities here. There is ground for these projects in Saudi Arabia and the buying power is strong in the Kingdom. Statistically many of the buyers in Dubai are Saudi; if developers were to give them something in their own country then they will respond.”
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ALAA ABDULLAH SAEED Company: Emaar Middle East Role: CEO Place: Jeddah Emaar Middle East is a joint venture between Dubai-based Emaar Properties and Saudi Arabia-based real estate company Al Oula Development. The company currently has two main projects under construction, the US $1.6 billion (SAR6 billion) Jeddah Gate project and the $1.2 billion Al Khobar Lakes project. “For our line of business Saudi Arabia is better shielded from the economic downturn. The population growth is also much stronger than in other areas of the world. If you look at the potential growth of demand in Saudi Arabia, it’s very attractive. Also, five years ago the market was really fragmented with the main players trading in land, now they are coming in and providing full turnkey solutions, which takes the market to a whole different level and the consumers are eating this up. At the same time the progressive improvement of the government in freeing up and assisting in the things that we need have given us a boost in penetrating this market in such a short period of time. The private sector is always pushing for more but so far the government has accommodated a lot of the issues that we want. It’s not easy, but it’s positive.”
PRINCE ALWALEED BIN TALAL AL SAUD Role: Chairman Company: Kingdom Holding Company (KHC) Place: Riyadh Prince Alwaleed formed the Kingdom Holding Company in 1980, and today the company is one of the world’s larg-
ESSAM AHMED KALTHOUM Role: CEO Company: Al Shamiyah Urban Development Company Place: Jeddah Kalthoum graduated from King Fahad University of Petroleum and Minerals in Dhahran, Saudi Arabia and has
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CONSTRUCTION WEEK MAY 23–29, 2009
est and most diversified private investment companies, with holdings in a large number of Middle Eastern and international companies. KHC’s domestic and international portfolio includes investments in a range of sectors, from iconic real estate landmarks and world-famous luxury hotels, to banking, media and information technology, retail business and healthcare, entertainment and tourism. The Prince’s real estate is valued at around US $3.2 billion.
more than 14 years experience in senior executive roles, and 13 years in entry and mid-level management. He has worked in both the private and semi-government sectors with roles at Samama O&M Group, Al Saif Investment Group, Crystal Chemical Company and as deputy director general of the Royal Commission for the Yanbu Project. As CEO of the Al Shamiyah Urban Development Company he is currently overseeing the development phase of two
multi-billion dollar projects in Makkah, the Haram Main Access project and the North Haram project. “These are huge projects, over the last seven years we’ve spent around US $53.4 million (SAR200 million) on design alone. Both projects are expected to be built over the next 15 to 20 years.”
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
GEORGE DINIC Role: Program Manager Company: Saudi Arabian Bectel Company (Sabco) Place: Jubail Dinic obtained his PhD from the Imperial College of Science in London and worked in various senior roles in the industry. He is employed by Sabco as program manager for the Royal Commis-
MOHAMAD AL NAGADI Role: President Company: Saudi Building Code National Committee Place: Riyadh
sion’s Jubail Industrial City. The 2009 budget allocated for Jubail’s expansion is US $880 million (SAR3.3 billion); a 35% to 40% increase from the previous year. “The Royal Commission and Sabco would have about 50 active contracts in construction at any point in time.That is a fairly demanding challenge because it’s really like closing a contract a week. They can go from small contracts such as $2.7 million right up to$133 million depending on the type of contract.”
tion of deputy minister for planning and programs. “The world is going through a dark economic tunnel but the atmosphere of the construction industry in Saudi is booming.”
Al Nagadi is also a member of the Kingdom’s Shura Council. He obtained a Bachelor in Structural Engineering studying between King Saud University and Dayton Ohio University. He then spent time working with the Ministry of Public Works and Housing before moving to the Ministry of Municipality and Rural Affairs where he held the posi-
SULTAN AY FADEN Role: Founder Company: Saudi Green Building Council Place: Jeddah Faden is an architect and head of the founding group for the Saudi Green Building Council. He obtained a Bachelor of architecture from King Fahd University of Petroleum and Minerals in
FARID CHAKER Role: Assistant General Manager Company: Saudi Oger Place: Riyadh
Dhahran. He also has a diploma in architecture and design from the Architecture Association in London. He has a total of seven years experience in three different consulting firms – Zuhair Fayed, Beeh Group and Arch-centre. In 2007 he began the process of forming the Saudi Green Building Council, which is expected to be fully operational by July. “The world has gone through a green awakening and Saudi Arabia has a chance to have a big impact. We already have many companies willing to join us.”
Chaker is responsible for all construction activities of Saudi Oger. He graduated from Ecole Supérieure d’Ingénieurs De Marseille in France with a Civil Engineering degree. Chaker is involved in several turn key projects in Saudi Arabia including
MOHAMMED A HAMMAD Role: Manager – central and western region projects Company: Saudi Aramco Place: Dhahran Hammad also holds the position of president of the Project Management Institute (PMI) Arabia chapter. He obtained a Bachelor of Science and Civil Engineering from Cairo University in Egypt before joining Saudi Aramco. He has more than 25 years project management experience with Saudi Aramco and headed up multi-billion dollar projects such as the Shaybah oil facility, the Hawiyah gas plant and the Hawiyah NGL plant. “Look at all the economic cities that are starting up across the country. Every year we see the government invest in construction programs.”
The Pilgrims Accommodation, The National Museum, the construction of King Abdullah University of Science & Technology, Princess Noura Bint Abdulrahman University for Women and the King Abdullah Economic city and many residential and offices projects.
People in this feature have been listed alphabetically and are in no particular order of preference.
MAY 23–29, 2009 CONSTRUCTION WEEK
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G AT E WAY T O A N E W J E D DA H UNLIKE ITS NEIGHBOURS, SAUDI ARABIA IS A COUNTRY WITHOUT ANY HIGH-RISE MASTER PLANNED DEVELOPMENTS. BUT NOT FOR LONG. EMAAR PROPERTIES’ JEDDAH GATE PROJECT IS CURRENTLY UNDER CONSTRUCTION AND LEADING THE CHARGE TO REBUILD JEDDAH’S CITY CENTRE Words by Benjamin Millington, photos by Rajesh Raghav
T
here must be no other city in the world that struggles with out-ofcontrol urban sprawl and yet has a 12km2 vacant lot in the city centre. But such is the case with Jeddah. Since the opening of Jeddah’s King Abdulaziz International Airport to the north of the city in 1981, the site of the old airport in the heart of Jeddah has remained undeveloped. Reasons for this are varied and not exactly clear, but what is clear is that the site presents a unique opportunity to build a new city centre, without the hassles of an existing urban environment. The developer to first recognise this potential was Emaar Middle East, a joint venture company between Dubai’s Emaar Properties (61%) and Saudi Arabia’s Al Oula Development (39%). In late 2004, Emaar made a proposal to the Jeddah Municipality and subsequently began work on a master plan for the site in 2005. “Based on this vision the municipality was convinced that they had a chance to do something, and since the government owns 55% of the land, they chose to go forward with investing and upgrading the area,” says Emaar’s director of sales and marketing Akram Omar. Taking the reins of the project, the municipality engaged international consultants HOK to work on a new master plan in 2006. Involved in the process were nine land owners from the private sector who own 45% of the site. The master plan was handed over in August 2008 and was composed of eight districts including a CBD, a financial district and
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King Abdullah towers — projects which are yet to be launched. Meanwhile Emaar, as one of the land owners, has forged ahead with construction of its own development within the old airport, the US $1.6 billion (SAR6 billion) Jeddah Gate project.
JEDDAH GATE Jeddah Gate is spread over two land parcels within the site, the first on King Abdullah Road covers 413,000m2 and the second on Abdullah Al Suleiman Street covers 140,000m2. When completed it is envisaged the project will consist of around 70 mixed-use towers, 6000 residential units, 250,000m2 of office space, 75,000m2 of retail space as well as schools, mosques and green areas. Omar, who is also an architect by profession, says the master plan is based on a series of communal plazas linked by pedestrian walkways, or spines. “On King Abdullah road we have a crescent plaza surrounded with low rise plots; this creates a visual attraction to the site and attracts people to the area,” says Omar. “This then links to the second community plaza which is surrounded by retail outlets, a mosque and serviced apartments. The spine then continues to a residential plaza and then to Jeddah Boulevard, which has a wide walkway with cafes and a light rail. The spine ends at the office plaza.” The first phase of construction kicked off in November 2007 and included the
TENDER NEWS
Tenders for the next three residential towers will be called in Q1 2010
CLOCKWISE FROM TOP: VIEW FROM THE 18TH FLOOR OF JEDDAH GATE’S RESIDENTIAL TOWERS; A PROPOSED MODEL OF THE PROJECT IN 10 YEARS; ONE OF THE RESIDENTIAL TOWERS UNDER CONSTRUCTION; THE JEDDAH GATE SALES CENTRE WITH A FULL SIZED MOCK UP APARTMENT.
MAY 23–29, 2009 CONSTRUCTION WEEK
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> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
tively conventional construction methods for what is a relatively conventional construction project. Assembling the jigsaw arrangement of the tower’s façade, a total of 4500 concrete precast panels, is proving complex, but Zeitoon says they are “getting the hang of it” and will soon be installing 70 panels a week.
DEVELOPMENT CHALLENGES
FAST FACTS Jeddah Gate: • Total cost is estimated at US $1.6 billion (SAR6 billion) • The site covers two land plots totaling 553,000m2 • The project will include construction of around 70 mixed-use towers • The first three towers will be handed over in June 2010 • 70% of infrastructure for the main land plot is now complete • Construction of the first 30-storey office tower will begin in the next two months • The site has achieved one million working hours without accident
infrastructure for the project’s 413,000m2 plot and three residential towers – one 19storey and two 22-storeys. Emaar’s senior project manager Basil Zeitoon says 70% of infrastructure is now complete and the last concrete slabs for the towers should be laid this month, with final handover due in June 2010. “We have around 850 workers on site now and all construction activities are progressing really fast,” says Zeitoon. “At one point we were laying slabs on an eight day cycle by using a sliding steel shuttering system for the columns and core walls and plywood formwork for the slabs. “We used that method right up to the 20th floor and the main advantage was speed, but also quality, less labour and safety.” Aside from the shuttering system, Zeitoon says the managment have employed rela-
While construction of the first towers is humming along, Omar says it hasn’t all been smooth sailing for the development team with regards to the long process of obtaining government approvals. As the Kingdom gets used to the idea of foreign investment and huge masterplanned developments, it seems Emaar has confronted the government’s teething problems head on. “When we first started, the authority for approvals was scattered between various government offices in Riyadh and Jeddah. There were a lot of issues at that point of time,” says Omar. “Finally a system was set in place and all the authorities for approval went back to Jeddah and now we have one point of contact which is Jeddah Municipality. That was a year back and I believe in the coming years it will get quicker.” The original timeframe for completion of the project was between 5 to 7 years, but Omar says it will now, more likely, be between 7 to 10 years due to the delays in the approval process. The next milestone for the development will be sometime in the next two months, when construction starts on the first office tower — one of three office towers that will visually define the perimeter of the site. The 30-storey tower will have 60,000m2 of sellable office space and begin to create the mixed-use feel that Jeddah Gate will eventually have, says Omar. Following that will be construction of the second package of three residential towers sometime in the first half of next year. The towers will be identical to the ones currently under construction and are already approved and design-ready. This will bring the total number of towers to seven, well shy of the intended 70, but Omar says there will come a time
EMAAR SALES AND MARKETING DIRECTOR AKRAM OMAR SAYS 70% OF UNITS HAVE ALREADY BEEN SOLD.
“WE’RE NOT REALLY EAGER TO THROW MORE UNITS ON THE MARKET OR LAUNCH MORE TOWERS NOW”
when the pace of development picks up – they’re just waiting for more movement in the market. “This year is tough and from a cash flow point of view you can’t really push hard and have units ready on site when the market is not really responding,” he says. “It won’t affect the long term plan, but we have to go step by step and we’re not really eager to throw more units on the market, or launch more towers now.” Of the three towers under construction 70% of units have been sold, but Omar says selling is currently a bit of an uphill battle, a fact that necessitated his move from the development team to sales. Aside from the financial crisis, Emaar faces a big challenge in educating the market about the benefits of their product. The concept of high-rise master planned communities is completely new to Saudi Arabia, a conservative country where people have traditionally preferred to live in villas. To counter this Omar says they are providing more separation between the towers, separate male and female health clubs and larger more luxurious apartments than they would offer in any other country. But he believes that the real selling point will be the creation of a self-sustained community with a pleasant outdoor environment
MAY 23–29, 2009 CONSTRUCTION WEEK
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filled with cafes, retail stores, greenery, parks and water features - an environment where you can live, work and play. “This type of project doesn’t exist in Saudi Arabia and it’s difficult to educate the market about the benefits when there is no point of reference for customers. Emaar is really creating one as it goes. “I think we will be in a much better position next year - the office tower will be under construction, we’ll hand over these towers, we’ll start construction on the next three towers and we may even start work on the Crescent Plaza – with this, a sense of community will be starting to form and appeal to customers; this is something that is not there yet.” Another difficulty facing the development team is public skepticism about the Jeddah Municipality’s plans for the old airport site, which has remained a piece of desert for almost 30 years. With little action happening on the rest of the site Omar says it’s been hard to convince consumers that the master planned city centre metropolis will ever materialise, but there are positive signs. The planned Makkah-Madinah railway, which will have a capacity to ferry 72,000 passengers an hour between the holy cit-
EMAAR SENIOR PROJECT MANAGER BASIL ZEITOON SAYS HE HAS 850 WORKERS CURRENTLY WORKING ON SITE.
“AT ONE POINT WE WERE LAYING SLABS ON AN EIGHT DAY CYCLE BY USING A SLIDING STEEL SHUTTERING SYSTEM FOR THE COLUMNS AND CORE WALLS AND PLYWOOD FORMWORK FOR THE SLABS”
JEDDAH GATE – PROJECT TEAM: DEVELOPER
Emaar Middle East
PROJECT MANAGEMENT CONSULTANT
CIMS Saudi
ARCHITECT/ENGINEER
Saudi Diyar Consultants
MAIN CONTRACTOR
International Building Systems Company
PRECAST FAÇADE MANUFACTURER/CONTRACTOR
Primco (SBG subsidiary)
INFRASTRUCTURE CONSULTANT
Zuhair Fayez Partnership (ZFT)
INFRASTRUCTURE CONTRACTOR
STS/SBCM joint venture
ies, will have its one stop in Jeddah located within the old airport site. Excavation work on the station recently commenced on the site and the train is expected to be functioning in three years - a positive sign that the municipality is committed to the project. “This is a very major part of the old airport development and means the municipality will have to start work on delivering a road network, sewer lines and other infrastructure,” says Omar. “It will also help push them to release more land for development and this will tell the people of Jeddah that this development is real and moving, slowly yes, but it’s moving. “Jeddah Gate is really a project that was ahead of its time, but over the coming years I have no doubt that it will build up significant credibility in the market.”
Engineering Works Foundation Infrastructure (L.L.C.) P.O. Box: 111245, Dubai - U.A.E. P.O. Box: 2752, Abu Dhabi - U.A.E. Tel: +971 4 340 9022 Fax: +971 4 340 8952 E-mail: brian@ewfi.ae
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BAHRAIN REPORT ISSUE PUBLISHED: 6TH JUNE 09 BOOKING DEADLINE: 26TH MAY 09 ADVERTISEMENT COPY DEADLINE: 2ND JUNE 09
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FOR ADVERTISING ENQUIRIES CONTACT: COMMERCIAL DIRECTOR SENIOR ACCOUNT MANAGER RAZ ISLAM SHISHIR DESAI TEL: +971 4 435 6371 TEL: +971 4 435 6375 EMAIL: RAZ.ISLAM@ITP.COM EMAIL: SHISHIR.DESAI@ITP.COM 1 CONSTRUCTION WEEK NOVEMBER 25–31, 2008
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www.ConstructionWEEKonline.com/directory
DIRECTORY
SHOWCASE | TOP 10 | PROJECTS | TENDERS | CITY FOCUS | SUPPLIERS DIRECTORY
SHOWCASE 40 Jubail, Saudi Arabia TOP 10 42 Suppliers you should know in KSA 44 PROJECTS 46 TENDERS CITY FOCUS 48 Jeddah, Saudi Arabia SPECIALIST SERVICES 50 HVAC & plumbing 51 Steel/manufacturers 52 Concrete/corrugated sheets 53 Wood/building materials
To advertise please call Bipin Soneji +971 4 435 6119, or email bipin.soneji@itp.com
MAY 23–29, 2009 CONSTRUCTION WEEK
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¦SHOWCASE
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ABOVE: Jubail One - Industrial Zone B is part of the massive Jubial Industrial City. Today it is the world’s largest industrial city and home to a multi-billion dollar petrochemicals industry that accounts for 7% of Saudi Arabia’s gross domestic product. RIGHT: Ongoing infrastructure works at Jubail Two - stage one, FRP pipeworks. Two 4m diameter pipes will supply seawater at a rate of up to 200,000m3 an hour with another 4m diameter pipe installed for supply/return.
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CONSTRUCTION WEEK MAY 23–29, 2009
CLOCKWISE FROM LEFT: The US $115 million pump station that will supply the industries with seawater for cooling, is being built at the end of an open canal; area construction manager for Jubail Two Aamar Hassan at the open sea water canal that supplies Jubail One with seawater; pipes transporting seawater directly from the Gulf to Jubai Two run over an 8km stretch; pipeline corridors at King Fahad Industrial Port are undergoing a major expansion.
JUBAIL INDUSTRIAL CITY, SAUDI ARABIA Jubail Industrial City is currently undergoing a massive expansion that is being overseen by the Royal Commission and Bechtel’s Saudi Arabian entity, the Saudi Arabian Bechtel Company (Sabco). It includes huge residential areas, a university, bigger port facilities, a rail network and a new industrial zone called Jubail Two, which will cover an area of 84km2 and will be located 8km to the west of the original industrial zone of Jubail One. A US $8 billion (SAR30 billion) refinery will also be built and operated by Satorp - a joint venture between Saudi Aramco and France’s total.
MAY 23–29, 2009 CONSTRUCTION WEEK
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To buy images within these pages please email itpimages@itp.com or visit itpimages.com
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
10 SUPPLIERS YOU SHOULD KNOW WITH THE WEALTH OF PROJECTS UNDERWAY IN SAUDI ARABIA, CONSTRUCTION WEEK FINDS 10 COMPANIES WITH THE POTENTIAL TO PLAY A KEY ROLE IN THE SUPPLY CHAIN By Jamie Stewart
AL KIFAH BATCHING PLANT Al Kifah Batching Plant is the building supplies wing of the Al Kifah Holding Company. The firm, based out of its plant in the Eastern Province of KSA manufactures mobile, portable and static concrete batching and mixing plants and accessories including aggregate sand washing plants, cement silos, radial and static conveyors and
RMD RMD Kwikform is currently involved in a push to further its Saudi Arabian business. RMD Kwikform provides formwork and shoring solutions to the global construction industry. It is a UK headquartered company with operations in 15 countries, including all GCC markets. It has offices in Saudi Arabia, UAE, Qatar, Bahrain, Lebanon, Oman and Kuwait. Director James Dewar says the
AL MUHAIDIB BUILDING MATERIALS Al Muhaidib Building Materials (MBM) is one of the largest importers, stockists, wholesalers and retailers of building materials to the construction industry in the Saudi
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electric control panels. The company says it has plants operating “in most Middle East countries,” and adopts “the latest innovative design techniques, allowing many combinations to suit different specifications and environmental considerations.” The Al Kifah Holding Company, based in Saudi Arabia, started its activities in 1980 as the manufacturer and supplier of construction machinery and earth moving equipment. www.alkifah.com
SABIC Sabic’s business lies in the manufacture of chemicals, fertilizers, plastics and metals. Sabic, the Saudi Basic Industries Corporation, states it is the largest and most profitable non-oil company in the Middle East, and one of the world’s five largest petrochemicals manufacturers. It is involved in the manufacture of chemicals, fertilisers, plastics and metals. It is a public company based in Riyadh. The firm says that “when it comes to making business decisions our ethical commitments are just as important as economic factors.” The Saudi Arabian government owns 70% of its shares, and the remaining 30% are held by private investors in Saudi Arabia and other countries within the GCC. www.sabic.com
firm is currently involved in a push to take advantage of the burgeoning Saudi Arabia construction market. The company is going to be based out of Jeddah, Riyadh and Al Khobar, and has secured three out of five properties from which to base itself. “We already have a number of full time staff in place in Saudi Arabia,” Dewar says. The group focuses on the construction supply chain, and “the impact each link of the chain can have on the overall project.” www.rmdkwikform.net
Arabia market, with an emphasis on steel and timber products. The firm says it has “long-standing experience and association with the major suppliers of timber and steel products throughout the world.” In Saudi Arabia MBM has over 400,000m2 of warehousing space in 50 locations, which allows it to cover all of the large cities and towns across
the country. MBM is a member of the AK Al Muhaidib and Sons group of companies. The group started out over 40 years ago in the eastern region of Saudi Arabia, and today is comprised of over 20 individual companies operating throughout Saudi Arabia, the GCC, and further afield. www.mbm.com.sa
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
ZAMIL STEEL Zamil Steel Industries announced positive financial results earlier this year for 2008 Zamil Steel Industries is involved in the design, manufacture, and supply of pre-engineered steel buildings. It offers structural steel works for industrial applications, such as electrical power plants, petrochemical plants, desalination plants, steel mills, and high rise buildings. The company announced the results of its consolidated financial statements for last year in February. Net profits for the
CONSTRUCTION MATERIAL CHEMICAL INDUSTRY Construction Material Chemical Industrial (CMCI) was established in 1984 in Dammam. The firm manufactures a range of concrete chemicals to service
year were US $60 million (SAR 225.1 million) compared to $55 million for the same period in 2007, an increase of 9%. Zamil Steel Industries was founded in 1977 and is headquartered in Dammam. www.zamilsteel.com
the growing Saudi Arabian construction industry. The company developed and grew in capacity as a producer of construction chemicals. Its products range from new generation concrete admixtures, high performance waterproofing systems, superior epoxy mortars, adhesives and coatings, advanced grouting systems for equipment and machinery,
EL SEIF ENGINEERING CONTRACTING COMPANY
Legrand specialises in products and systems for electrical installations and information networks, which include switches and sockets, cable management, and home automation systems. Legrand operates through a net-
Alyusuf Group incorporates the Alyusuf Aluminium Factory, Alyusuf Glass and Mirrors, and Alyufuf Décor. The Alyusuf Aluminium Factory specialises in all types of aluminium profiles and sections, and carries out works such as windows and doors for residential and commercial buildings, including frameless doors, partitions, showrooms and shop-front fitting, aluminium display counters and aluminium kitchens. www.alyusufgroup.com
concrete repair systems and a range of curing and sealing products. The company says it has supplied over 3000 projects across KSA and the Middle East. It has branch offices in Riyadh, Jeddah, Madinah, Yanbu, Jubail, Al Hassa and Khamis Mushayt and a network of distributors in the Middle East and Asia. www.cmci-sa.com
fields of civil and building construction in the Kingdom, possessing the highest classification awarded in KSA of Grade 1, Class A. It plays a role in the fields of operation and maintenance of engineering, technical and electronic systems and installations. The parent company, El Seif Group, launched operations in Saudi Arabia and the Middle East in 1951 in the commerce and transport sectors. www.el-seif.com.sa
El Seif Engineering Contracting Company is part of the El Seif Group, a Saudi group of companies with diverse interests in KSA and across the Middle East. The company, established in 1975, is ranked among the top three firms in the
LEGRAND
ALYUSUF GROUP
work of regional specialists, including its Saudi Arabia base in Jeddah. According to Legrand, “This means the assurance of having a single contact who is competent and easy to reach.” The firm says it has over 4800 active patents covering close to 1450 different systems and technologies. www. legrandelectric.com
PRETECH Pretech, based in the Yanbu Industrial area, operates from a 25,000m2 production plant, with the capacity to produce 250m3 of precast concrete units and 3000m2 of hollow core slabs per day. The company manufactures precast pre-stressed hollow core slabs for shoring and retaining walls, wall panels and bridge deck units.
Companies listed in this feature are in no particular order of preference.
MAY 23–29, 2009 CONSTRUCTION WEEK
43
PROJECTS §
¦PROJECTS A SELECT UAE DATABASE - BUILDING PROJECTS FOCUS TO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM
Project focus
KING ABDULLAH ECONOMIC CITY
To list your projects in this section email details to editor@ConstructionWeekOnline.com
The US $50 billion (SAR187.5 billion) King Abdullah Economic City (KAEC) is a massive development located in Rabigh, Saudi Arabia and is being built by Emaar Properties. The master plan of the city shows that it will be divided into an industrial zone, residential zone, sea resort and sea port. The industrial zone will cover an area of 63 million m², with 17 million m² falling under construction for phase one. The zone will include offices, electrical substations, plants, factorites and a mosque. The sea resort provides a built-up area exceeding 3.5 million m² to be used to build hotels, residential apartments, a golf resort, spas and water sports facilities. In addition to that, the sea port provides 14 million m² to build a world-class port on Saudi Arabia’s west coast. The port will include 30 berths to serve global trade routes between Asia, Europe and Africa. Furthermore, last year King Abdullah visited the city and evaluated the progress. He also inaugurated projects and initiatives with a total worth of $35 billion. These projects
PROJECT TITLE
THE FIRST PHASE OF KAEC IS DUE TO BE COMPLETED BY 2011.
include a science and research complex, Thunderbird University, Health Care City and KAEC Media City. Construction began in 2006. The first phase is expected to be completed by 2011, while the overall project is due to be finished in 2025.
CLIENT
CONSULTANT
MAIN CONTRACTOR
VALUE (US$MN)
STATUS
240 PUBLIC HOUSING VILLAS IN YANBU
Royal Commission for Jubail and Yanbu
In House
Al Muhaidib Contracting Company
8000 RESIDENTIAL UNITS - NORTH JEDDAH
Kinan/Savola Group/Eleba Company
Not Appointed
Not Appointed
CENTRAL QUALITY CONTROL LABORATORY IN RIYADH
Ministry of Commerce & Industry
Saudi Architects Office
Al Afug Contracting Establishment
10
project under construction
100 BED HOSPITAL IN QATIF
Ministry of Health
Beeah Planners
Saeed Radad Al Zahrany
17
project under construction
THUMAMAH PARK IN RIYADH - PHASE 1
Arriyadh Development Authority
Omrania & Associates
Not Appointed
28
project under design
JABAL AL KABA DEVELOPMENT - MEGA HOTEL
Abdul Latif Jamil Real Estate
Dar Al Handasah
Saudi Constructioneers Establishment
101 - 250
project under construction
DAR AL QEBLAH COMPLEX
Munshaat Real Estate Projects Company
Zuhair Fayez & Partners
Saudi Binladin Group
180
project under construction
UMM AL QURA UNIVERSITY EXPANSION - STAFF ACCOMMODATION - PHASE 2
Umm Al Qura University
SaudConsult
Nesma & Partners Contracting Company
16
project under construction
IMAM ISLAMIC UNIVERSITY IN RIYADH - ISLAMIC STUDIES COLLEGE
Imam Islamic University
Tibsa/In House
Saudi Art of Architecture Maintenance
27
project under construction
UMM AL QURA UNIVERSITY EXPANSION - PHARMACY COLLEGE
Umm Al Qura University
SaudConsult
Al Arrab Contracting Company
19
project under construction
SAUDI ARABIA
44
CONSTRUCTION WEEK MAY 23–29, 2009
74
640
project under construction
project in concept stage
PROJECT TITLE
CLIENT
CONSULTANT
MAIN CONTRACTOR
VALUE (US$MN)
STATUS
KING FAHD NATIONAL LIBRARY
Arriyadh Development Authority/King Fahd National Library
SaudConsult/Gerber Architects
Saudi Binladin Group
78
project under construction
RESIDENTIAL TOWN IN AL BATHA - PHASE 4
Ministry of Finance
Abdulrahman Al Noeim Engineering Consultant
Al Eraini Contracting Company
14
project under construction
TABUK DOMESTIC AIRPORT EXPANSION
General Authority for Civil Aviation
Saudi Consolidated Engineering Company
Saudi Binladin Group
59
project under construction
ITCC PARK IN RIYADH
The Public Pension Agency
Zuhair Fayez & Partners
Not Appointed
530
award awaited for the main contract
AL FANAR COMMERCIAL CENTER IN DAMMAM
Sheikh Saleh Al Subeaei
Arabian Services Group
Asmael General Contracting Company
2.5 - 15
project under construction
TV STATION IN DAMMAM
Ministry of Culture & Information
Zuhair Fayez & Partners/Theatretech
First Gulf Contracting Company
27
project under construction
BENAA CITY IN RIYADH
Benaa al Kawaed Real Estate Development Company
Abdul Elah Al Mohanna Engineering
Not Appointed
55
project under design
PEDIATRIC & MATERNITY HOSPITAL IN RAFHA
Ministry of Health
Al Mashriq Contracting
Al Mashriq Contracting
53
project under construction
IMAM ISLAMIC UNIVERSITY - PHASES 1 & 2
Ministry of Higher Education
Tibsa
Al Fouzan Trading & General Construction
133
project under construction
EXTERNAL ATRIUM IN THE PROPHETS MOSQUE
Ministry of Hajj
Dar Al Handasah
Saudi Binladin Group
1000
project under construction
LABORATORY FOR GENERAL PRODUCTS IN JEDDAH
Authority for Management & Specification
Soleiman Abdullah El Kheraiji Consultant
Naif Abo Ryash Establishment
3
project under construction
AL DOSSARY TOWER IN DAMMAM
Yousef Al Dossary
Saudi Designers Engineering Consultants
Al Zahrani for Trading & Contracting
20
project under construction
SCHLUMBERGER OPERATION BASE COMPLEX IN DAMMAM
Schlumberger Middle East SA
Al Hojailan Engineering Consulting Office
Al Hojailan Engineering Consulting Office
19
project under construction
300-BED HOSPITAL IN RIYADH
Ministry of Health
Abdulrahman Al Noeim Engineering Consultant
Al Fouzan Trading & General Construction
57
project under construction
TWIN TOWERS IN JEDDAH
Salah Serafi Corporation
Abnia Design Consultant
Mubarak Al Guthmi Contracting Company
80
project under construction
INDUSTRIAL INSTITUTE IN DAMMAM
Zamil Industrial Investment Company
Al Awami Planners & Consulting
Amjad Shami Contracting Establishment
20
project under construction
HQ FOR THE INTERIOR MINISTRY IN JEDDAH
Ministry of Interior
SaudConsult
Al Mashriq Contracting
16
project under construction
§ PROJECTS
> For the latest projects information visit www.ConstructionWEEKonline.com/projects
SAUDI ARABIA
To list your projects in this section email details to editor@ConstructionWeekOnline.com
APRIL APRIL 18–24, 11–17, APRIL 4–10,2009 2009 CONSTRUCTION CONSTRUCTION WEEK WEEK
47 41 59
TENDERS §
¦TENDERS FREE TENDERS AND SERVICES IN THE CONSTRUCTION INDUSTRY TO INCLUDE YOUR TENDERS IN THIS SECTION EMAIL TENDER DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM
BAHRAIN Issuer: Kingdom of Bahrain Ministry of Works Tender No: SPDh/091/08 Description: Suitably experienced dredging and reclamation firms invited to bid for the reclamation and marine works for the new fishing harbour at Malkiya. Closes: 27 May Bond: BHD5000 Contact: www.tenderboard.gov.bh Issuer: Municipalities and Agricultural Affairs Tender No: FIN/04/09 Description: Construction of Janbiyah Garden. Closes: 27 May Fees: BHD50 Bond: BHD4000 Contact: www.tenderboard.gov.bh Issuer: Bahrain Electricity and Water Authority Tender No: 099/2009/4120 Description: Design, supply, installation of a jib crane arm with electric hoist. Closes: 27 May Fees: BHD15 Bond: BHD500 Contact: www.tenderboard.gov.bh
To include your tenders in this section email tender details to editor@ConstructionWeekOnline.com
Issuer: Bahrain Electricity and Water Authority Tender No: 091/2009/4120 Description: Supply, installation, testing and commissioning of steam valves and servomotors for a steam turbine. Closes: 27 May Fees: BHD25 Bond: BHD1000 Contact: www.tenderboard.gov.bh THE 2400KM NORTH SOUTH RAILWAY PROJECT IS CURRENTLY UNDER CONSTRUCTION.
Tender focus
SAUDI RAILWAY ORGANISATION Saudi Railway Organisation manages all of the rail transport in Saudi Arabia, which provides a freight service on three main lines totalling 1018km. These tracks currently connect the region’s capital of Riyadh with the Eastern Province’s city of Dammam. The firm, however, plans to expand this network by adding the Saudi Landbridge, a 945km line from Riyadh to Jeddah and a 115km line from Dammam to Jubail; and the Haramain High Speed Rail Project linking Saudi’s two holy cities, Makkah and Madinah via Jeddah. In addition, the organisation plans to construct the North South Railway from Riyadh via Buraidah, Hail and Al Jawf to Al Haditha. The 2400kmlong railway, which is currently under construction, will be used for the transportation of minerals and passengers in the Kingdom. Last week, Saudi Railway Organisation awarded a US $37.8 million (SAR142 million) contract to UK-based engineering firm Foster and Partners, according to reports from Jeddah-based Okaz newspaper. The company will carry out engineering designs for the passenger stations of the Hamarain railway. Al Rajhi consortium won the civil works for the $1.9 billion project in January 2009. Construction is scheduled for completion in 2013.
46
CONSTRUCTION WEEK MAY 23–29, 2009
Issuer: Civil Aviation Affairs Tender No: EMD/9/P/311 Description: Design and reconstruction of existing pump station at Bahrain International Airport Bond: BHD1000 Contact: www.tenderboard.gov.bh
EGYPT Issuer: Egyptian company for the Metro Management and Operation Description: Request of international offers for the supply of electric metro trains to operate on Cairo Metro’s first line. Closes: 23 May Fees: EGP50,000 Bond: EGP5,000,000 Contact: Ramses Square, Cairo Tel: +20 2 267 0932 Issuer: Central Egypt Flour Mills Description: Design, supply and erection of two flour mills. Closes: 25 May Fees: EGP20,000 Bond: EGP80,000 Contact: Soultan Land, Nile Cornich, Minya. PO Box 13 Tel: +20 86 364 9997 Issuer: Egyptian Electricity Transmission Company Description: Design, manufacture and supply two 220KV and 2 x 125MVA power transformers. Closes: 15 June Fees: EGP11,259 Bond: EGP563,000 Contact: 5 Sixth October street, El Mounib, Giza Tel: +20 3 571 6390
OMAN Issuer: Rural Areas Electricity Company Tender No: 95/2009 Description: Construction of Khadrea new power station in Wusta region. Closes: 18 May Fees: OMR1,080,000 Contact: www.tenderboard.gov.om Issuer: Mazoon Electricity Company Tender No: 104/2009 Description: Upgrading of Ashkhara substation to 2x10MVA transformers in al Sharqiya region. Closes: 25 May Fees: OMR187,000 Contact: www.tenderboard.gov.om Issuer: Mazoon Electricity Company Tender No: 102/2009 Description: Extension of power supply to Al Qateen, Abu Qutayifan, Al Hais, Maqttah in Dima and Wadi Atyin. Closes: 25 May Fees: OMR224,000 Contact: www.tenderboard.gov.om
Issuer: Ministry of Transport and Communication Tender No: 134/2009 Description: Consultancy services including designs and construction supervision for development of Shinas Port. Closes: 1 June Bond: OMR500,000 Contact: www.tenderboard.gov.om Issuer: Rural Areas Electricity Company Tender No: 125/2009 Description: Additional generation at Khasab power station in Musandam Governorate. Closes: 15 June Fees: OMR570,000 Contact: www.tenderboard.gov.om Issuer: Ministry of Transport and Communication Tender No: 149/2009 Description: Consultancy services for the design and supervision of the new headquarters and operations centre for Oman Post Company. Closes: 15 June Fees: OMR100,000 Contact: www.tenderboard.om Issuer: Supreme Committee for Town Planning Tender No: 128/2009 Description: Hasik infrastructures master plan project for the construction of internal roads, surface water drainage and wastewater treatment plant. Closes: 22 June Fees: OMR1,500,000 Contact: www.tenderboard.gov.om
Issuer: Oman Electricity Transmission Company Tender No: 145/2009 Description: Construction of 132/33KV grid station at Muttrah and associated 132KV transmission line. Closes: 22 June Fees: OMR1,500,000 Contact: www.tenderboard.om Issuer: Ministry of Education Tender No: 131/2009 Description: Construction of 14 classrooms at a mixed, basic education school at Wadi Al Hyoul, Wilayat. Closes: 22 June Fees: OMR347,000 Contact: www.tenderboard.gov.om
QATAR Issuer: Qatar Petroleum Tender No: GT09105700 Description: Demolition of old and redundant buildings including residential houses, offices and workshops. Closes: 7 June Fees: QAR500 Bond: QAR5000 Contact: Contracts Department – Corporate Division, Qatar Petroleu, PO Box 3212, Royal Plaza, G Wing, 4th Floor, Room G11, Doha Issuer: Qatar Petroleum Tender No: GT09106400 Description: Pipeline maintenance at Dukhan Closes: 28 June Fees: QAR500 Contact: Contracts Department - Corporate Division, Qatar Petroleum, PO Box 3212, Royal Plaza, G Wing, 4th Floor, Room G11, Doha
SAUDI ARABIA Issuer: Royal Commission for Jubail & Yanbu Tender no: PIC A-1621A Description: The scope of work includes the procurement and construction of the expansion of the sanitary sewer system at Yanbu Industrial City. The work will include the construction of a new lift station. Closes: 24 May Fees: SAR1000 Contact: Directorate General for the Commission at Yanbu PO Box 30031 Issuer: Royal Commission for Jubail & Yanbu Tender no: 712-C03 Description: Primary and secondary site development infrastructure at Mutrafiah stage two. Closes: 25 May Fees: SAR33,500 Contact: Directorate General for the Commission at Yanbu PO Box 30031 Issuer: Ministry of Transport Tender no: MOT-4 Description: The scope of work includes the construction of
phase two of the 2nd ring road in Makkah. Closes: 31 May Fees: SAR2000 Contact: Ministry of Transport Contracts Department Issuer: Ministry of Transport Tender no: MOT-3 Description: The scope of work includes refurbishment of intersection two and seventeen at Riyadh ring road. Closes: 2 June Fees: SAR2000 Contact: Ministry of Transport Contracts Department Issuer: Ministry of Transport Tender no: MOT-1 Description: Refurbishment of exits and entrance roads of King Saud bin Abdulaziz University in Riyadh. Closes: 3 June Fees: SAR2000 Contact: Ministry of Transport Contracts Department Issuer: Ministry of Transport Tender no: MOT-1 Description: Construction of Riyadh-Besha Highway. Closes: 3 June Fees: SAR2000 Contact: Ministry of Transport Contracts Department Issuer: Saline Water Conversion Corporation Tender no: SWCC-1 Description: Construction of safety and fire building in Al Aziziah. Closes: 21 June Fees: SAR500 Contact: www.swcc.gov.sa
UAE Issuer: Dubai Electricity and Water Authority Tender No: CE/0802/2008 Description: Request for eligible bidders to a repair gas turbine exhaust system for station ‘E’. Closes: 24 May Fees: AED1000 Contact: Dubai Electricity and Water Authority, PO Box 564, Dubai, UAE Issuer: Federal Electricity and Water Authority Tender No: E23/09 Description: Extension of existing 33/11KV substations in the Northern Emirates. Closes: 9 June Fees: AED1500 Contact: Federal Electricity and Water Authority, PO Box 1672, Dubai, UAE Issuer: Federal Electricity and Water Authority Tender No: E11/2009 Description: 33/11KV substation works in Northern Emirates. Closes: 9 June Fees: AED4000 Contact: Federal Electricity and Water Authority, PO Box 1672, Dubai, UAE Issuer: Dubai Electricity and Water Authority Tender No: CW/0104/2009 Description: Supply of one complete pump-motor without base frame for Najma Pumping Station, phase three. Closes: 15 June Fees: AED200 Contact: Dubai Electricity and Water Authority, PO Box 564, Dubai, UAE
MAY 23–29, 2009 CONSTRUCTION WEEK
47
To include your tenders in this section email tender details to editor@ConstructionWeekOnline.com
Issuer: Ministry of Transport and Communication Tender No: 110/2009 Description: Construction of roads at Al Jabal Al Akhdhar. Closes: 1 June Fees: OMR175,000 Contact: www.tenderboard.gov.om Issuer: Public Establishment for Industrial Estates Tender No: 109/2009 Description: The scope of work includes the expansion of Nizwa Industrial Estate- phase two. Closes: 1 June Fees: OMR100,000 Contact: www.tenderboard.gov.om
Issuer: Ministry of Education Tender No: 129/2009 Description: Construction of 18 classrooms at Abu Al Muthir boys basic education school at Wadi Quriyat. Closes: 22 June Fees: OMR428,000 Contact: www.tenderboard.gov.om
§ TENDERS
> Check the latest tenders online at www.ConstructionWEEKonline.com/tenders
SPECIALIST SERVICES §
¦SPECIALIST SERVICES CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 435 6119, OR EMAIL BIPIN.SONEJI@ITP.COM
Supplier focus
PRECAST TECHNOLOGIES
MANUFACTURER OF PRECAST CONCRETE PRODUCTS
To advertise please call +971 4 435 6119 or email bipin.soneji@itp.com
Owned by Al Rajhi Investment Group, Precast Technologies (Pretech) was established in Saudi Arabia to manufacture precast prestressed hollow core slabs, which can be used as wall panels, shoring and retaining walls and bridge deck units. Other precast concrete elements are designed, produced and erected by Pretech such as wall-beams, columns, staircases, girders, foundations and barriers. The company, which was formed in 2006, has two mixer plants with extruders producing hollow core slabs of thickness varying from 150mm to 500mm. Pretech is located in Yanbu Industrial area and the company’s new production plant covers an area of 25,000m². Currently the company has the capacity to produce 250m³ of precast concrete units and 3000m² of hollow core slabs per day. It also has a concrete transportation system - a shuttle for fast delivery to the casting and extruder machines. All products are manufactured inside the plant using technologies such as rotating tables, a central shifter for shifting tables, flying buckets for pouring concrete and a laboratory for all types of tests. Pretech’s quality department tests all concrete for its compressive strength, slump and entrained air.
PRESIDENT OF PRECAST TECHNOLOGIES HENRIK PEDERSEN.
Final quality checks for specification compliance, integrity, and appearance are also carried out on individual pieces prior to delivery.
HVAC & PLUMBING RELATED EQUIPMENT
48
CONSTRUCTION WEEK MAY 23–29, 2009
STEEL
STEEL
CONSTRUCTION/MANUFACTURERS
BUILDING MATERIALS
§ SPECIALIST SERVICES
> For directory information visit www.ConstructionWEEKonline.com/directory
CONSTRUCTION CHEMICALS
RECRUITMENT
,OOKING TO RECRUIT WORKERS FROM
)NDIA .EPAL
"ANGLADESH 3RI ,ANKA
0HILIPPINES 4HAILAND
6IETNAM 0AKISTAN
OR LOCAL LABOUR SUPPLY To advertise please call +971 4 4 435 6119 or email bipin.soneji@itp.com
7E ALSO UNDERTAKE -IGRATION 3ERVICE TO !USTRALIA #ANADA 4EL &AX % MAIL ASSIDUAA EIM AE CONSTRUCTION SELF-HELP
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MAY 23–29, 2009 CONSTRUCTION WEEK
49
SPECIALIST SERVICES §
¦SPECIALIST SERVICES CONSTRUCTION PRODUCTS AND SERVICES FOUND EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 435 6119, OR EMAIL BIPIN.SONEJI@ITP.COM
CONTRACTORS/MANUFACTURERS
CONCRETE
CONSTRUCTION/MANUFACTURERS
OTAL (LLC) Dubai, U.A.E Phone: (+971-4) 267 9646 e-mail: otal@eim.ae website: www.otal.ae DEWATERING
Engineering Works Foundation Infrastructure (L.L.C.) P.O. Box: 111245, Dubai - U.A.E. P.O. Box: 2752, Abu Dhabi - U.A.E. Tel: +971 4 340 9022 Fax: +971 4 340 8952 E-mail: brian@ewfi.ae
SPECIALIZED DEWATERING SERVICES: • Specialized in Deepwell, Wellpoint, Open pumping techniques • Professional Service
To advertise please call +971 4 435 6119 or email bipin.soneji@itp.com
• Round the clock backup • Effective Groundwater control
PP CORRUGATED SHEETS
50
CONSTRUCTION WEEK MAY 23–29, 2009
RECRUITMENT
WOOD AND TIMBER
BUILDING MATERIALS
§ SPECIALIST SERVICES
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STEEL
HEM, IPE, IPN, UPN
FLOORING
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BUILDING MATERIALS
MAY 23–29, 2009 CONSTRUCTION WEEK
51
CITY UPDATE
JEDDAH, SAUDI ARABIA THE LATEST PROJECTS AND NEWS FROM JEDDAH, SAUDI ARABIA By Sarah Blackman
KHALED DESOUKI/AFP/GETTY IMAGES JEDDAH ISLAMIC PORT WAS BUILT FOR MUSLIM PILGRIMS TRAVELING TO MAKKAH DURING HAJJ.
The city of Jeddah, which is located on the coast of the Red Sea, was founded as a fishing hamlet 2000 years ago. Due to its closeness with Islam’s holy city of Makkah, in 647AD Jeddah turned into a port for Muslims taking part in the annual rituals associated with Hajj. With a current population of more than 3.4 million, Jeddah comprises a number of impressive features including an 80km corniche along the coastline, as well as the
52
CONSTRUCTION WEEK MAY 23–29, 2009
King Abdulaziz University, which 37,000 students attend; and King Abdulaziz International Airport, the country’s third largest airport, which has a specially built terminal for pilgrims destined for Makkah. Because of the major problems of congestion during Hajj, when over three million people travel to the region, a new railway line will be constructed, which is intended to cut the five hour car journey to Makkah to just half an hour.
JEDDAH HAS A POPULATION OF
3.4
MILLION
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
THE LATEST NEWS FROM JEDDAH GREENLIGHT FOR NEW INFRASTRUCTURE PROJECTS Vehicles have started to cross the newly completed Jeddah flyover at the intersection between Muhammad (Tahliah) Street and Prince Miteb (Arbaeen) Street. The US $5.1 million (SAR19.3 million) project started in January 2008 and consists of 3.3m-wide lanes in both directions. Ahmad Banafa, general supervisor of projects at the Jeddah municipality, which awarded the contracts for the infrastructure projects, told Arab News that the opening of the flyover was delayed by a month due to unexpected circumstances relating to lack of communication between clients. There are 18 ongoing road development projects including Quraish Street along King Fahd Road, which are estimated to cost $266.7 million, according to deputy mayor for construction projects Ibrahim Kutubkhanah. “Projects currently under bid are estimated at $293.7 billion while 35 projects worth $801 million are still in the design phase,” said Kutubkhanah.
MAKKAH CONSTRUCTION PLAYERS AWARDED FOR EXCELLENCE Eight companies including Saudi Aramco were awarded the Makkah Award for Excellence in Jeddah last week for their contributions to the development of the province. The winners were announced by Prince Khaled Al Faisal governor of Makkah at the event, which was held for the first time. “It completes our development strategy in the region by encouraging outstanding work from both individuals and organisations,” he said. The award was established last year and organised by the Makkah Board of Culture headed by Prince Khaled. It aims to increase competition and creativity by giving recognition in selected fields. “The award is open to anyone who feels that he or she has contributed significantly to the development of the region,” the prince added. The award is also open to both local and international companies. “What’s important is the significance of their contributions to the Makkah region.” The Makkah Award of Excellence is divided into eight categories including administrative excellence, which Saudi Aramco Wester Region walked away with. In addition, the Architectural Excellence Award went to the Khuzam Development Project initiated by the Jeddah municipality and Dar Al Arkan Company. The project is turning an undeveloped area into a city landmark. The Environmental Excellence Award went to the Arafat Tree Project initiated and funded by Abdul Rahman Faqeeh, while businessman Saleh Kamel scooped the Economic Excellence Award for initiating significant projects in the province.
THE JEDDAH GATE PROJECT IS WORTH AROUND US $1.6 BILLION.
JEDDAH MEGA PROJECTS Jeddah Gate Client: Emaar Properties Estimated value: US $1.6 billion Schedule: The project is under construction and will be built in several phases. The expected development time is ten years. Scope: Jeddah Gate is a big development in the heart of Jeddah, located on two sites. The first is spread over 413,000m² and is located along King Abdullah Street and the second is spread over 140,000m² along Abdullah Al Suleiman Street. The project will comprise 6000 residential units, 230,000m² of commercial space and 75,000m² of gross rentable area for retailers. Haramain high-speed rail project Client: Saudi Railway Organisation Estimated value: US $1.9 billion Schedule: Construction is scheduled for completion in 2013. Scope: The railway will be a high speed electrified passenger double line between Makkah, Madinah and Jeddah. The speed of the train is 360kmph. The design, construction, operation and maintenance of HHR will be executed in two phases. Mile Tower Client: Kingdom Holding Company Contractors: Omrania & Associates are the main consultants. Estimated value: US $15 billion Schedule: The project is now at design stage and construction is expected to start in the first quarter of 2010. It is set to be completed in 2014. Scope: The project calls for the construction of the 1600m-high skyscpaper. The Mile Tower will be a mixed-used building and include apartments, hotels, commercial shops and malls. It will be the tallest skyscraper in the world. King Abdullah University of Science & Technology Client: Saudi Aramco Contractors: Saudi Oger, Saudi Binladin Group, Huta Sete Marine Works Estimated value: US $3.5 billion
Schedule: In July 2007, Saudi Oger was awarded the main construction contract for the university campus. Project duration is two years and is due to be completed in September of this year. Scope: The project calls for the construction of King Abdullah University of Science and Technology on Thuwal approximately 80km north of Jeddah. Kaust is divided into four packages; residential buildings, civic buildings, a univeristy campus and a marina. The university will cover over 36 million m² and will be capable of serving up to 20,000 people. JEDDAH SMALL PROJECTS Client: Saudi Electricity Company Estimated value: US $50 million Schedule: Mohammad Al Ajmy Establishment was awarded the main construction contract this month. The project is currently under construction and is expected to be completed in quarter two of 2011. Scope: The project calls for the construction of a power cable in Jeddah. The cable will connect Al Quizah 2 Substation, Al Nozha Substation and Mina Substation with the national grid. Client: Saudi Electricity Company Estimated value: US $60 million Schedule: Saudi Services for Electro Mechanic Works Company was awarded the main construction contract this month. The project is currently under construction and is expected to be completed in quarter two of 2012. Scope: The project calls for the construction of a 380KV power cable in Jeddah. The cable will connect Al Kindra Substation with University Substation in Jeddah city. Client: Aldar Al Khasa Estimated value: US $200 million Schedule: Freyssinet Saudi Arabia was awarded the main construction contract in December 2008. Construction is in progress and is expected to be completed in the first quarter of 2012. Scope: The project calls for the construction of two towers at Jeddah Business Park.
MAY 23–29, 2009 CONSTRUCTION WEEK
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ConstructSAFE Construction Week and Build Safe UAE have come together to bring you an illustration to communicate health, safety and welfare risks to all construction stakeholders (especially the workforce) to prevent accidents on site. Exclusive to Construction Week.
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CONSTRUCTION WEEK MAY 23–29, 2009
> For the ConstructSafe comic strip log on to www.ConstructionWEEKonline.com
Introducing the Construct Safe lead characters (from Left to Right)
experience. Poor health, safety & welfare knowledge
Raoul: Senior Supervisor with 30 years experience and good health, safety & welfare knowledge
Farik: Apprentice labourer new to the industry with no experience. Poor health, safety & welfare knowledge
Achmat: Construction labourer with little
Illustrations by Jincom Publishing
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MAY 23–29, 2009 CONSTRUCTION WEEK
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DIALOGUE GEOFF SANDERSON Taking a chance on Saudi Arabia Green Concepts Landscape Architects (GCLA) has moved to Saudi Arabia but was it due to desperate times and was it a desperate measure? CW asks GCLA’s principle Geoff Sanderson.
What projects are you working on in Saudi Arabia?
In Jeddah we’re working on the metropolitan park, part of the proposed open space network, which is an east west park network that connects Jeddah’s waterfront to the mountains on the other side of the city. The part we are working on is 12km and we’re doing that in joint venture with Zuhiar Fayez, a very large consultancy in KSA. We’re also doing three other sizable projects in Riyadh at the moment. That’s a fair start and these projects have all come in the last three months. Did your company make the move to Saudi Arabia as a result of the slow down?
Not as a result of the slow down, we planned this a long time ago in anticipation of a significant slowdown in Dubai and started our move here before that actually happened, hence we’re already up and running. Our office is almost ready to open in Riyadh; we may also open an office in Jeddah and in Bahrain in the long term. Our company is part of the Packer Group in Australia and so we are well managed and well financed. We just started a major project in Tunisia and so there is also a chance of opening an office there as well. Our resources were such that a move to Saudi Arabia was not only manageable, but it was a logical step for us to take.
market. Our sponsor is the Abunayyan Group and they are just delightful people. I had meetings with managers of some of the companies that they already sponsored and everyone spoke very highly of them. Those companies were also very successful and enthusiastic. I met with so many others that were only half interested and I knew that their agenda didn’t match ours. That’s the key piece of advice. Those that are hasty to get into the market might make very expense mistakes when it comes to choosing a sponsor. Our sponsor has opened so many doors for us and made it relatively easy for us in a way. And what about one’s finances?
It’s not an easy market unless you’re very well financed – you have to spend money to make money. You’ve got to expect to spend a lot of time without a cash flow forging new relationships and making contacts. There may be some small or medium sized consulting firms that think this is the new Makkah, but it comes with a lot of risk, the same as setting up in North Africa or Eastern Europe. Have there been any unexpected challenges setting up in Saudi Arabia?
No, because I’ve been so long in this region I was prepared for it. The relative novices may not expect it to be quite as difficult How has your business been affected by the slowdown? to penetrate. The other thing they won’t expect is that the fees Some of our staff is currently on leave because 18 out of our are considerably less than what we are used to in the UAE. You must expect lesser fees and reduce your margins, you 22 projects in Dubai were put on hold and that had an awful can’t expect to trade based on the effect, except that some of our really big projects were outside Dubai. None margins that we were used to in the BIO the less we had to downsize to a small healthy days in Dubai and we’ve had to Geoff Sanderson obtained his Master of extent, but we’re now rebuilding again adjust our services accordingly. Science in Horticulture from Melbourne and will be hiring some new staff next On the positive side your overheads University Australia and also completed are much less in Saudi - rentals are month. a Bachelor of Landscape Architecture much less, petrol is half the price, at RMIT and the Australian Institute of Do you have any advice for people salaries for most people are less, food coming to the region on difficulties Landscape Architects, of which he is a past prices are less – nearly everything that they may face in setting up here? president. He practiced as a landscape you are going to pay for in Saudi is architect, mainly in private enterprise, The reason it took us quite a while going to be less than the UAE. So our since 1972 and as a horticulturist since to come into the Saudi market is costs come down and we can provide 1967. He has worked for 19 years in the that we took our time trying to find a competitive service, but in total it is Arabian Gulf region - six years in Bahrain the right sponsor. You must find a more than a client is used to paying for and 13 in the UAE. sponsor that is compatible with your what they’ve had in the past from an business and highly regarded in the engineering company.
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CONSTRUCTION WEEK MAY 23–29, 2009
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