CW Issue 262 by ITP Business Publishing

FACE TO FACE 14 | PROJECT UPDATE 16 | BUSINESS LEADS 38 | CLASSIFIED 45 | ON-SITE TALK 48 www.constructionweekonline.com

WEEKLY NEWS, FEATURES, TENDERS AND JOBS FOR THE CONSTRUCTION INDUSTRY IN THE MIDDLE EAST

START LENDING

Banks have been called to relax their lending criteria to boost construction

SAUDI ARABIA

King Abdulla Economic City signs six agreements in bid to finish on time

OBSTACLE

RACE

We get on site at Abu Dhabi’s Yas Island F1 theme park that is scheduled to be completed

March 7 - 13, 2009 | ISSUE 262

ISSUE 262, March 7 - 13, 2009

14 CONTENTS 2 COMMENT & LETTERS 4 REGIONAL NEWS 12 WHATâ&#x20AC;&#x2122;S ONLINE 16 PROJECT UPDATE Features Editor Shikha Mishra visits Yas Island, dubbed as the ultimate tourist attraction in the UAE, to find out what progress is being made.

26 PRODUCT REPORT

Assistant Editor Fida Slayman reports on how construction companies can improve their health and safety initiatives and in turn decrease the number of accidents and fatalities on site.

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38 BUSINESS LEADS 43 PROJECT FOCUS 64 ON-SITE TALK

March 7 - 13, 2009

EDITOR’S COMMENT Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000, Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP Business Publishing CEO Walid Akawi Managing Director Neil Davies Deputy Managing Director Matthew Southwell Editorial Director David Ingham Publishing Director Jason Bowman Editorial 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 Editor Benjamin Millington Tel: +973 1 756 4111 email: ben.millington@itp.com Assistant Editor Jamie Stewart Tel: +971 4 435 6268 email: jamie.stewart@itp.com Assistant Editor Sarah Blackman Tel: +971 4 435 6253 email: sarah.blackman@itp.com Saudi Arabia Correspondent Reema Memon Tel: +966 507 893 613 Advertising 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 Photography Director of Photography Sevag Davidian Chief Photographer Nemanja Seslija, Senior Photographers Alan Desiderio, Efraim Evidor, Khatuna Khutsishvili Staff Photographers Khaled Termanini, Thanos Lazopoulos, John Pocock, Jovana Obradovic, George Dipin, Samin Abarqoi, Leila Cranswick, Rajesh Raghav, Ruel Pableo, Louis Savage Production & Distribution Group Production Manager Kyle Smith Production Manager Eleanor Zwanepoel Deputy Production Manager Ammar Shawwa Production Coordinator Devaprakash V.A Tel: +971 4 435 6305 email: devaprakash@itp.com 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 Senior Marketing Executive Masood Ahmad ITP Digital Director Peter Conmy

Summer’s round the corner It’s been pretty stormy in the region over the past few months. But the sand storms have been the least of my worries. But, with every dusty day we come closer to the promise of a clear and sunny one. And judging by what transpired at last week’s Abu Dhabi Economic Forum, that day doesn’t seem too far off. The undersecretary of the Abu Dhabi Department of Planning and Economy Mohammed Abdullah said that the local economy would see itself through the next year with the UAE Government spending on local infrastructure projects, along with its recent move to inject more funds into the emirates’ banks. A display of such conﬁdence can only be shown if a larger safety net already spans the economy. In any case this brings relief to the region’s construction industry, which has seen many building projects put on hold or cancelled. Sultan Al Mansouri, the UAE minister of economy, went a step further and was reported as saying that he didn’t think the UAE would fall into recession at all. He predicted a stable economy for at least “nine months” from now, but did say that there would be a slowdown as the UAE was not immune to global forces. Last month the Dubai Government pumped US $20 billion into the economy and the Real Estate

Regulatory Agency said developers in the emirate have access to up to $2.2 billion from escrow accounts to cover construction commitments. In addition to this encouraging news, neighbouring Saudi Arabia should be happy with a report released last week from Bank of America Securities-Merrill Lynch claiming that the Kingdom’s economy will be “minimally” affected by the global turmoil this year and will be back on track in 2010. The report went on to say that the kingdom’s GDP will shrink by 0.2% in 2009, but will be relatively unaffected due to its savings, lack of reliance on foreign trade and diversiﬁed economy with construction leading the way. Saudi Arabia’s GDP is expected to bounce back by 2.8% in 2010. The report said it has saved 76% of the oil revenues between 2002 and 2008, with its public debt falling from over 100% of GDP in the 1990s to a mere 13.5% in 2008. Saudi Arabia is the largest construction market in the Gulf, with US $400 billion worth of projects planned or under way. Summer could be here quicker than we think.

Conrad Egbert, editor E-mail: conrad.egbert@itp.com

ITP Group Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin

TALKBACK

Send your comments to rob.wagner@itp.com

RE: Cirrus throws a line at Aquarius Gate investors What a load of rubbish! The only line Cirrus have thrown to investors is a 30 day notice for the 3rd payment of 10%, which takes investor payments up to 30%, or the investor will have there property taken back off them. Further, Cirrus has not started any construction on the project. Nishchint

You should offer electric scooters for public use instead. When you want to change the world, then you should install a prt system that covers all public transport needs. But at the moment I don’t believe that there is any system that has solved all topics concerning safety and traffic organisation. Christian

RE: Fast-Tracked I am sure Drake & Scull will successfully complete this project (Centro and Rotana Hotels, Yas Island) in time since they’ve got the experience, manpower and technology. Johncy

RE: Steel Supplement I was delighted to see that the steel industry was covered last week in such detail. I work for the sector myself and feel that it does not get enough coverage especially when it is such an important part of the construction process. Erica Wallis

Circulation Customer Service Tel: +971 4 286 8559 Certain images in this issue are available for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com. Printed by Color Lines Press Subscribe online at www.itp.com/subscriptions 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 reader’s 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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Construction Week: Worldwide Circulation Statement Average Qualified Circulation 12,625 (Jan-June 2008)

March 7 - 13, 2009

RE: Abu Dhabi public transport plan revealed This small personal rapid transit system makes no sense!

Letters may be edited for clarity or length

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REGIONAL NEWS

Worker impaled by reinforcement

Limitless to invite DJA tenders in Q3

BY BENJAMIN MILLINGTON An Indian construction worker was killed in Bahrain last week after falling more than 12 floors and being impaled on steel reinforcement, according to the Labour Ministry. The man was working as a subcontractor for Al Hamad Construction on the US $600 million (BHD245 million) Villamar Towers project, which is under construction at Bahrain’s Financial Harbour. No other details about the man have been released. The Labour Ministry told Construction Week the worker fell while trying to get down from scaffolding at the top of the tower after pouring a concrete column. The man was wearing a safety harness but it was not clipped onto the safety rail. It’s believed he fell only 1.5m off the scaffolding but landed awkwardly and toppled backwards off the tower’s highest concrete slab. The Ministry is currently investigating and questioning four witnesses to the accident. Villamar Tower’s developer Gulf Holdings Company and Al Hamad Construction have also launched their own internal investigation. To date no public statement has been issued. In a separate incident, Construction Week has also learned that a labourer committed suicide on Saturday at the Reef Island project located next to Bahrain Financial Harbour. The Indian national was also working for Al Hamad Construction and is said to have hung himself on the 7th floor of the tower. It’s believed the man was suffering depression regarding personal issues in India.

March 7 - 13, 2009

Bids for construction of the first of the four central plaza buildings will be invited in the third quarter of this year.

BY JAMIE STEWART Dubai-based master developer Limitless will begin rolling out further construction contracts within its Downtown Jebel Ali (DJA) development from the fourth quarter of this year, project director Salah Ameen has said. The firm will invite tenders in the third quarter of this year for construction of the first of four central plaza buildings within the mega-project. A three-month period of review and negotiation will take place, with an award expected by the fourth quarter. Contracts for the subsequent three central plaza buildings will be rolled out with approximate two-year intervals between each. The value of the contracts is yet to be determined, due to the current unpredictability of the

market. “We had some estimated values,” Ameen said. “But the situation means we have to do further reviews.” Ameen also added that Limitless intends to aim for Silver Leed status across the masterdevelopment, meaning its subdevelopers and contractors must be prepared to meet the same target. It was also revealed that six international firms are in the running for the design and build contract to provide the DJA “people mover.” All bids and proposals are expected to come in by midMarch and undergo a similar two- to three-month review period before an award is made in June. “We have not yet selected the system, but within the scope, we have indicated that we need something that is environmentally friendly and restricts the noise

levels associated with transport,” Ameen said. “We want an elegant system of moving people around. This may mean small shuttles, it may mean small train cars, and it may even mean a system of driverless mini-buses. “We are expecting the firms in the running to come back to us with ideas that may be new, or they may have been implemented somewhere else.” Ameen did not disclose which firms are involved in the bidding. “They are international, and specialists within this particular field,” he said. DJA covers an 11km x 300m strip parallel to Sheikh Zayed Road, opposite the Jebel Ali Free Zone. It will be split into four zones, each of which will be serviced by a Dubai Metro station. Limitless is constructing three of the four stations in conjunction with the RTA and its partners. www.constructionweekonline.com

REGIONAL NEWS

CSR experts slam green dept cut backs BY JAMIE STEWART Two top corporate social responsibility (CSR) experts have criticised the non-adherence to sustainable business practices on the part of many companies in the midst of the economic crisis. The comments were made by Deloitte director of sustainability strategies Ralph Thurm and Sharjah Environment and Protected Areas Authority director Abdulaziz Al Midfa, speaking at the Emirates Environmental Group (EEG) second community lecture for 2009 last week. “The country suffered a great loss by letting go of many talented individuals who contributed to the sustainability campaign in the corporate sector,” Al Midfa said. “Many companies are missing their priority and reverting to outdated management strategies which caused the climate of collapse in the financial system in the first place.”

Sharjah Environment and Protected Areas Authority director Abdulaziz Al Midfa.

The EEG said in a statement following the event. “It is ironic that many companies decided to downsize if not totally axe their sustainability units – a move that echoes the level of understanding of many companies of corporate social responsibility.” A number of firms have been

forced to make harsh cutbacks as the shockwaves of the global recession have been felt across the region. Some have opted for a shortterm saving by making cuts from departments with a strong focus on sustainability, which tend to deliver more substantial returns but over a longer period of time. Thurm spoke on the importance of a company “understanding the current business climate and defining a long term vision within its core business strategies.” Al Midfa also added: “It is a big challenge for companies to emerge from the current crisis. It is an even bigger challenge to restore trust and confidence in the private sector in the light of the global economic crisis.” The EEG, a voluntary NGO, works within the environmental protection field through means of education, action programmes and community involvement, and is a member of the United Nations Global Compact.

Machine tool makers focus on emerging markets BY GREG WHITAKER The Taiwanese machine tool market will focus on emerging markets, though the UAE and Saudi Arabia will only make up a modest part of this strategy, according to a panel of experts at an industry trade fair. Speaking about ways to survive the economic crisis at the Timtos tool show held in Taipei, Alan Lu, chairman of the Taiwanese Association of Machinery Industry said that the GCC countries offered an opportunity, if only a modest one at present. “There is a market in Dubai still – particularly to the oil and gas sector,” he said, adding that www.constructionweekonline.com

there was also a strong opportunity to sell to Iran, but current trade restrictions made this difficult. However, he pointed out that other emerging markets offered more scope at the present time. According to Lu, these included Brazil, South Africa and various CIS states. The show was opened on Monday morning by the president of Taiwan, Ma Ying-jeou, who noted that while the island was badly affected by the downturn, which he described as an ‘economic tsunami’, it was better placed than other markets like Malaysia and South Korea, due in part to a recent devaluing of the New Taiwanese dollar.

Machine tools include lathes, roll-formers and multi-axis ‘machining centres’. In the regional construction market there are many firms able to produce bespoke components for heavy equipment using lathes and machining centres, while formwork and structural joists are produced using roll-formers. Several Taiwanese companies making this equipment can be found in the GCC region, including Hartford, the island’s largest, who are represented at a Sharjahbased dealership. General manager Steven Yeh said: “We look forward to much more business with the UAE and Saudi Arabia in the future.”

IN BRIEF GULF EXTRUSIONS WINS MANAGEMENT AWARD Gulf Extrusions, a provider of aluminum products, has been awarded the ISO 9001:2000 certification for Quality Management by Lloyds Register Quality Assurance, Dubai. The ISO certification was handed over after a series of assessments and inspections were carried out by Lloyds. “The ISO certification underscores our commitment to quality, product excellence and customer satisfaction,” said Modar Al Mekdad, general manager of Gulf Extrusions. The company also plans to expand its operations in the region and into emerging markets like India, North Africa and the UK. It aims to address the demand for aluminum extrusion in the Middle East region which, according to recent studies, has reached an average of 450,000 tonnes per in 2008, with Saudi Arabia, Qatar, UAE and Kuwait accounting for most of the demand.

DP WORLD COMPLETE PROJECT WITH STUDENTS Dubai Men’s College (DMC) students have handed over a scale model of a Tandem Lift Gantry Crane they built with DP World’s support. Majid Al Mannaei, Khalid Mohammed and Rashid Mahmood, higher diploma students in Mechatronics at DMC, completed the project during their six-month work placement programme. “DP World launched training and internship programmes for students to help create a new generation with a strong and clear vision for their careers,” said Mohammed Al Muallem, senior vice president and managing director of DP World’s UAE Region.

March 7 – 13, 2009

REGIONAL NEWS IN BRIEF DEPA AWARDED SECOND MOROCCAN CONTRACT Dubai-based Depa has been awarded a US $50million (AED183 million) fit-out contract through its Moroccan subsidiary DepaMar. The order is for the fit out of the Mazagan Resort villas at the El Jadida development. The contract is the second win for DepaMar at Mazagan after it was awarded the fit-out works for the resort’s five-star hotel, golf club house, entertainment centre, health club and spa in July 2007. Located on the country’s Atlantic coast, the overall development covers 3.2 million m2 and will also feature a lagoon area and an 18-hole golf course. The client is a group of Dubai-based Istithmar, Bahamasbased Kerzner, the Moroccan government and a number of local private investors.

AUSTRALIAN ARCHITECT ALLIANCE IN MIDDLE EAST Australian company Thomson Adsett Architects is succeeding in forming new partnerships to seek opportunities in the Middle East construction industry. Total Alliance Health Partners International (Tahpi), a partnership which includes Thomson Adsett Architects, has signed a memorandum of understanding last week with the Australian arm of major international construction company, Laing O’Rourke, at a Middle East Export Network Forum organised by Trade Queensland. “Laing O’Rourke is one of the biggest players in construction globally and is currently undertaking a number of major projects in the Middle East,” said trade minister John Mickel. “Trade Queensland encourages the state’s exporting companies to investigate partnering opportunities in Middle East construction and infrastructure projects.”

March 7 - 13, 2009

MAG Group CEO says banks must “get the economy moving again” BY JAMIE STEWART The boss of a top UAE developer has made an impassioned call for banks to relax their lending criteria for prospective mid-range home owners to “get the economy moving again.” The comments were made by MAG Group Property Development CEO Mohammed Nimer, in reaction to a snap survey carried out on behalf of the firm. Such a move would spell relief for sections of the construction industry, with many developers already being forced to relax terms of payment for existing clients unsettled by the lack of liquidity in the market. “In most cases a minimum of 50% of the purchase price is required, which means a prospective buyer needs to find in excess of one million dirhams in cash as a deposit, which is virtually impossible for most,” Nimer said. The construction industry

MAG Group Property Development CEO Mohammed Nimer. has stalled in many parts of the country, with an ever increasing number of projects being placed on-hold or cancelled due to the inability of would-be buyers to qualify for mortgages. The resumption of lending on the part of banks would bring to an end the arid liquidity situation, allowing many developers to push on with stalled projects. MAG Group said that the survey it commissioned, “underlined the problem caused by restrict-

ing credit to potential homeowners, revealing that in some cases it would be cheaper to buy than rent property.” “These aspiring home owners constitute thousands of white collar workers in both public and private sectors,” Nimer said. “If they feel that they don’t have a long-term future in the country, they may well not be around when the upturn arrives.” Nimer added that the recent correction in the real estate market should have spurred a relaxation of lending rules. “The problem is that most of the main mortgage providers are demanding excessive deposits up front even though property prices have softened considerably already,” he said. “My message to them is quite simple. You have sufficient capital, so start lending to prospective home owners and get the real estate market, not to mention the wider economy, moving again.”

More mortgages for Saudi Arabia Saudi Arabian Real Estate Financing Company (Refco) plans to start offering home loans next year to service the strong demand for home ownership in the Kingdom. The move could jump start development and construction in the Kingdom, which has suffered from the economic slowdown. The firm said they are waiting for the government to pass a new mortgage law, which will make it easier for Saudis to buy property, reported Reuters. The draft law has been on the agenda for more than a decade but last month Ibrahim al-Assaf, the

finance minister, said it will definitely be passed this year. Once the law is in place, the Saudi mortgage finance industry could generate a yearly turnover of between US $40 billion (SAR150 billion) to $48 billion, the Strategic Mortgage Finance Group said. Saudi Arabia has a population of 25 million people but less than 30% currently own property – the lowest ownership levels amongst the Gulf states. Refco has hired US consultancy Clayton Holdings to assess the size of the Saudi housing market and to create a business plan. Clayton said it was working

on exit strategies for the loans, including how to repackage the assets in a way that complied with Islamic law. “The Saudi market is fundamentally underserved in terms of home financing,” Clayton’s president for consulting services Bruce Legan said. He added that the world’s top oil exporter had a housing deficit of two million residential units, a figure which was rising by 200,000 a year. “You have two thirds of the population below the age of 30 with fewer Saudis wanting to live with their parents,” Legan said. www.constructionweekonline.com

REGIONAL NEWS

Dubai's F1-X theme park suspended for one year BY ELSA BAXTER Construction of the US $460 million (AED1.69 billion) Formula One theme park in Dubai’s MotorCity has been halted because liquidity from banks has dried up in the wake of the current financial crisis. Dubai-based Union Properties said it has suspended work on the F1-X theme park for one year, despite the project being more than half complete. The theme park was due to open later this year. “The suspension will delay the opening of the Formula One entertainment concept until 2010,” the company said in a statement about the project, released last week.

www.constructionweekonline.com

“With construction more than 50% complete, the core of international expertise on the ground and operational plans virtually complete, it is hard to believe that a financial partner will not come forward in the coming days or weeks to capitalise on the opportunity,” Penny Fischer, marketing director for F1-X said in a statement. She added: “The project is founded on a strong business model that withstands recession whilst allowing for the future growth of Dubai.” Union Properties made a fourthquarter loss of $10.2 million due to lower land sales but expects 2009 to be a year of profit making.

UDC projects moving at fast pace BY SARAH BLACKMAN The head of United Development Company (UDC) based in Qatar has said the company rests upon “resilient foundations” and will complete all of its projects on time. Chairman Hussein Alfardan said the first phase of construction at UDC’s US $13.7 billion (QR50 billion) flagship project – The Pearl-Qatar – has already been completed. He also announced the launch of The Pearl for Management and Operations, a project development and asset management company providing infrastructure services at The Pearl-Qatar and other international urban development projects. “We are strong and moving ahead with our projects and marketing them,” Alfardan told Gulf Times

after the company’s annual meeting last week. Qatar Cool, another UDC joint venture, has completed the first phase of the world’s largest district cooling plant at Pearl-Qatar. Khalil Sholy, UDC’s managing director and president, said this success follows a year of “solid performance” in 2008 across the UDC portfolio of projects and operations. “Revenues for 2008 have exceeded QR2.1 billion, an 18% year-on-year increase, and our net profit and earnings per share have similarly improved by 100%” The Pearl-Qatar has achieved international recognition for excellence in design and construction and acquiring property there continues to attract interest from buyers in some 52 countries, the company said.

March 7 – 13, 2009

REGIONAL NEWS IN BRIEF NEW CONSTRUCTION PRODUCTS RELEASED Universal Construction Machinery and Equipments, India has launched 10 new products, which it will export to regions such as the Middle East and Africa. The products, which have lower cost of operation and reduced weight, will help the business overcome the sluggish demand during a slowdown period, the company said. The equipment includes a 10/7 concrete mixer with hopper, RM 300, PAN Mixer tractor, a multipurpose lift, and a chimney lift for 300m in height. “The construction industry is facing the recession blues so the products have come at the right time for us,” Universal Construction Machinery and Equipment managing director Ranjeet Moray said. The company will be appointing 100 dealers by the end of March.

Kuwait’s Electricity and Water Ministry is expected to re-tender the Subiya power plant project, according to a source close to the scheme. The tender has been cancelled and will be reissued in March but the ministry has not made an official announcement. The ministry was in negotiations with two bidders, Germany’s Siemens and Spain’s Iberdrola, and had been expected to award the engineering, procurement and construction contract in February. According to media reports the ministry has scrapped the tender to protect itself against currency fluctuations. Siemens, which had a low offer of US $2.8 billion (KD761 million), submitted its price in euros based on a fixed exchange rate. The effect of any exchange rate fluctuation would have been shouldered by the ministry.

March 7 - 13, 2009

BY SARAH BLACKMAN Universal Studios Dubailand, a member of Tatweer Dubai, has signed an agreement with Sesame Workshop, to develop three Sesame Street-themed entertainment venues. The US $2.2 billion (AED8 billion) theme park, which is now under construction, is due to be completed in 2012 and is expected to be more than 1.9 million m² in size. Presented in a multi-sensory 400-seat theatre, Sesame Street 4-D Movie Magic will be based in the park’s Surf City and guests will be able hear, see, feel and smell the technology advanced movie. “Our collaboration with Universal Studios has allowed us to design and build a family destination in the region,” said Khalid Al Malik, CEO of Tatweer Dubai. “Our new partnership with Sesame Workshop will enable us to deliver incomparable family entertainment featuring the legendary Sesame Street experience.” In addition to the theatre, a Sesame Street themed carousel and live stage show will be built and Elmo’s Emporium will offer a selection of themed merchandise. “We are thrilled to partner with

Matthew Peyton/Getty Images

KUWAIT TO RE-TENDER POWER PLANT

Universal Studios Dubailand agreement to develop Sesame Street attractions

Big Bird and friends are heading to Dubailand as part of a joint venture. Universal Studios Dubailand to create a new home for Big Bird and all his friends,” said Gary Knell, president and CEO of Sesame Workshop. “The park offers

a remarkable opportunity to share all the laughter and learning of Sesame Street with the people of the UAE and visiting guests from around the world.”

Contracts signed for KSA’s Economic City Six agreements for the development of the King Abdullah Economic City were signed last week pushing the multi-million dollar investment closer towards its 2025 completion date. Contracts for a dry port and passenger and cargo terminals, residential and commercial towers, a major hotel as well as an agree-

ment for the development of food and agricultural industries and staff training, were signed at a ceremony at the site in the northern province of Hail. “This is an exciting time for the region. The new economic city in Hail will bring a new impetus to the economy of the area and create thousands of jobs both during

construction and in the long term as it becomes a logistical hub for many different industries,” said Prince Saud bin Abdul Mohsen, who attended the ceremony. But according to some media reports several companies involved in the project have said work has slowed down, casting fresh doubts over its progress. www.constructionweekonline.com

REGIONAL NEWS IN BRIEF

Growth in Abu Dhabi office rental market spurs region

DEWA AND METITO SIGN US $10.4mn DEAL

ABU DHABI AWARDS AIRPORT TENDER The local National Specialist Contractors Council (NSCC) has been awarded the foundations package for the US $6.8 billion midfield terminal project at Abu International Airport. The construction involves piling and excavation work for a third passenger terminal at the airport. The client, Abu Dhabi Airports Company (Adac), expects to award the main construction contract during the second financial quarter of the year. Three companies have been short-listed for the contract including France’s Aeroports de Paris (ADP), Germany’s Hochtief and Turkey’s TAV. The new terminal is designed to increase annual passenger-handling capacity at the airport from 20 million to 32 million.

March 7 - 13, 2009

Karim Sahibafp/Getty Images

Dubai Electricity and Water Authority (Dewa) has signed a US $10.4 million (AED38 million) deal with Metito, a global supplier and designer of water and wastewater treatment, to develop a new project in the Jebel Ali Power Complex. The operation will include the supply and installation of high purity water treatment plants, tanks and electrical works. ”The growth of Dubai is rooted in water,” said Mahmoud Kabeel, plant sales manager in Dubai, Northern Emirates and Oman. “With this augmentation and construction, Dewa and Metito are facilitating the use of power needed for added growth in the Jebel Ali area. Metito is honoured to be awarded the contract from Dewa.”

The Abu Dhabi office rental market in 2008 helped propel the rate of growth across the Middle East to an average of 9%.

BY JAMIE STEWART Substantial growth within the Abu Dhabi office rental market in 2008 helped propel the rate of growth in the Middle East to a 9% average, according to a new report. But though such figures would usually spur construction activity, the wider economic environment may offset such a spike, the firm behind the report told Construction Week. “Abu Dhabi currently has a severe shortage of Grade A space,” the Office Space Across the World 2009 report, by real estate firm Cushman and Wakefield, stated.

“As demand from both international and domestic occupiers held firm, rental levels have risen by a third over the year,” it said. “Nevertheless, demand has started to focus on smaller floorplates as occupiers look to scale down their operations.” Cushman and Wakefield research chief David Hutchings warned that despite the growth rate, economic conditions may continue to hamper construction. “If you take a market which has seen phenomenal growth and the economic conditions remain the same then you will typically find a significant increase in developer

and investor interest,” he said. “But clearly in an environment where the current and prospective economic environment is weaker then people will not automatically react to the past growth.” Office space in Abu Dhabi averaged at US $973 per m², up 33% on the previous year. Globally, only Kuala Lumpur and an area of Istanbul saw stronger annual growth. The report also showed that Dubai climbed up the rankings from 8th to 5th place, the biggest jump of any of the city in the top ten. Office space in Dubai averaged $1179 per m² in 2008, up 7% on the previous year.

The World’s Ireland island owner takes own life The owner of Ireland on Dubai’s The World project has taken his own life amid rumours of financial worries as a result of the global economic crisis, according to Irish daily, The Irish Independent. John O’Dolan, was one of four business partners who bought the island development in March 2007 for US $38.6 million (AED142 million).

O’Dolan, owner of O’Dolan International, was found dead at his home in Rusheen Bay in Galway last week, leaving behind a wife and three children. There is speculation that his death was linked to the recession with commentators saying O’Dolan was depressed and despondent over his faltering finances.

On buying the island of Ireland O’Dolan said: “We look forward to developing Ireland, which will provide the Irish homeowner with their very own place they can call home in the sun.” Other members of the Irish consortium are Noel Connellan, Ray Norton and Andrew Brett, who bought the island to coincide with St Patrick’s Day. www.constructionweekonline.com

ConstructionWeekonline com MOST READ

IN PICTURES: Yas Island

job losses 1 Official rise past 3500 mark Kingdom Holding says 2 tower not cancelled 3 Electric Qatar Qatar’s eye to 4 the future still 5 Dubai delivering MOST COMMENTED

Cirrus throws a line to Aquarius Gate investors “As an investor with Cirrus, nobody met with me one-onone to discuss my needs as stated by the COO of Cirrus. The payment plan issued also Take a tour around the construction site of the much anticipated does not tie the payment plan with construction after 20%, it UA E tourist attraction, Yas Island at www.constructionweekonline.com ties it after 30%. Further, the payment plan itself is linked to construction but the milestones are ridiculous.” Sajjad Ahmed

Are you one of the TOP 50 CONTRACTORS in the GCC?

POLL Do you think reclamation projects have an adverse effect on the surrounding marine environment?

91% Yes, I think they kill fish and other aquatic life

9% No, there's no evidence to support this theory

“The only line Cirrus have thrown to investors is a 30 day notice for 3rd payment of 10% taking investor payments up to 30% or the investor will have their property taken back off them.” Jhon NEXT WEEK’S POLL

Will you use Dubai’s metro when it’s up and running in six months time?

Cast your vote at www.constructionweekonline.com

March 7 - 13, 2009

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Unger Steel Middle East offers a complete range of comprehensive solutions to demanding investors in steel constructions as well as ready-to-use objects UÊ >«>V ÌÞÊ vÊxä]äääÊÌ ÃÊ vÊÃÌii ÊV ÃÌÀÕVÌ ÃÊ«iÀÊÞi>ÀÊ UÊ ÀiÊÌ > Ê{ääÊi « ÞiiÃÊ UÊ ÕÃiÊi } iiÀ }Ê UÊ ÌÊ «Ê > Û> â }Ê>VV À` }ÊÌ Ê Ê -"Ê£{È£Ê UÊ } ÊµÕ> ÌÞÊ Õ Ì } UÊ* > ÌÊÃ ÌiÊ vÊ£ää]äääÊÃµ

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FACE TO FACE

A home for everyone Carol Prince, marketing director at RWN Trading, says that portable shelter systems might be the answer to issues surrounding labour camps in the Middle East. Will portable shelter systems become important in the UAE? The use of collapsible portable shelter system units will rise since the Dubai Municipality (DM) has clamped down on substandard facilities. A DM report mentions that up to 40% of the 1033 permanent and temporary labour camps in Dubai alone could be forced to close as they do not meet the minimum level of health and safety standards. Construction companies are finding that by using portable shelter systems they are able to have their workers on site and do away with the transportation costs of ferrying staff to and from the work site. Accommodation units are frequently many miles away from the place of construction and this will also save hours of commuting time and transportation costs.

What is unique about your portable products? The Alihut product, through its features, both aesthetic and in terms of overall versatility, is the next step for the portable housing industry and could be the solution that labour camp owners are looking for. Alihut is a logical solution to the crisis of labour camps, but there is also a humanitarian need to offer a better standard of accommodation to the construction workers here in the UAE.

What makes Alihut stand apart from other products in the market? Logistically, current industry products only allow for the move-

March 7 - 13, 2009

â&#x20AC;&#x153;Construction companies are finding that by using portable shelter systems they are able to have their workers on site and do away with the transportation costs of ferrying staff to and from the work siteâ&#x20AC;? Marketing director Carol Prince.

ment of one portable housing structure at a time. Alihut on the other hand can be moved as six units at a time. Where other products remain erect at all times, Alihut folds down to 550mm in size allowing, with the specifically designed racking system, for six units to be moved in place of the usual one. This instantly reduces transport costs to one sixth of the ordinary costs to move six demountable housing units. Deployment of Alihut reduces labour and costs in erecting this type of housing unit. In the past, to erect and have a portable housing unit functioning would be very labour intensive. The Alihut as a collapsible shelter, however, can be erected within 20 minutes using the inbuilt motor or within an hour using the manual windup system. From the 550mm flat pack the Alihut erects to become a standard 6m-long demountable housing unit with a 2.4m ceiling

clearance and 2.4m width. Not only is the set up time far less than other industry products, but after the unit is erected all amenities are simply connected via an exterior connection, thus removing the need for trades and interior work to be completed only when the unit is set up. Once erect its insulation is certified for -50 to +50 degrees and is fully cyclone rated with a complete range of layout options and accessories to fit out as desired.

internal and external, company logos, window and door configurations, floors specifications, power sources, internet options, furnishings and kitchenette appliances. The prospects of a highly simplistic transport and deployment system for portable housing units are limitless in areas of disaster relief, military operations, humanitarian aid and the mining industry.

Can these units be customised?

What new projects are you working on?

The standard 6m by 2.4m configuration can be custom built up to 12m, including the ability to attach units together in order to fulfill floor space requirements. In addition there are also added customisations to include interior configurations such as medical facilities, storage facilities or as emergency shelters. Customisations can go further to include a variety of colours, both

We had envisioned that the main areas of enquiries would be from the governmental department for labour camps, humanitarian rescue situations and emergency housing. But, we have had interest in providing temporary office and housing solution from the International Spill Control Organisation (Isco), who deal with chemical and oil spill emergency situations worldwide. www.constructionweekonline.com

Emicool keeps you COOL

Emirates Glass, L.L.C., P.O. Box 29769, Dubai, UAE Tel: +971 4 7094700 Fax: + 971 4 3471440 E - m a i l : e m i g l a s s @ e m i r a t e s . n e t . a e W e b s i t e : w w w. e m i r a t e s g l a s s . c o m

PROJECT UPDATE A Ferrari theme park, an F1 circuit, marinas and plush hotels â&#x20AC;&#x201C; the Yas Island development is set to become the ultimate tourist destination in the UAE. Features Editor, Shikha Mishra goes on site to see how this US $40 million development is progressing. Photos: Jovana Obradovic.

THE YAS ISLAND

EXPERIENCE

March 7 - 13, 2009

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PROJECT UPDATE

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March 7 - 13, 2009

PROJECT UPDATE

lying into Abu Dhabi? Look out of the window and you will spot the 10,000m² bright red roof of the Ferrari theme park, which is under construction on Yas Island. Yas Island stretches across 6.5km in length and breadth and is located just opposite Abu Dhabi International airport. There is still a lot of work to be done – the 10,000m² of roof which is complete is just a part of the 205,000m² of total roof area. But Felix Warny, project director of Ferrari Experience, Yas Island, Six Construct, is confident that the project will meet its completion deadline. “The building will be closed by November 1, 2009. The roof and the façade will be finished by that time. But inside the building in terms of finishes, work will still be going on,” says Warny. The Ferrari theme park will be the first of its kind and will feature the fastest rollercoaster in the world. Apart from other rides,

Yas Island is being dubbed the complete tourist attraction.

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PROJECT UPDATE

The Yas Island stretches stretches across 6.5km. 6.5km.

attractions and shops, there will also be three hotels in the surrounding area. Even though the main building will be closed by November this year, it will take time to open to the public. “It is a milestone here to create something of this size. It is bigger than the Pentagon. There are three extensions of the main building. The Formula One race track is going to be outside the building,” says Warny. Nine-thousand tonnes of steel have gone into constructing the roof alone, with 28 cranes, 30 mobile cranes and 22 cherry pickers working around the clock on site. The space frame of the theme park has been assembled piece by piece – it is made up of 42,000 nodes and 180,000 elements. “One hundred and ninety towers are currently holding up the structure and after it is complete the towers will be removed and the structure will be held up by the central cylindrical column and the space frame,” says Warny. About 600 containers of insulation are coming from Germany for the roof. “The total value of the civil works are about US $176.9 million (AED650 million), the steel structure is valued at $115.9 million and erection of the steel structure, the façade and the roof comes up to $193.3 million,” says Warny. www.constructionweekonline.com

The roof and fa faççade is expected to be completed by November November..

“We have about 30 bridges to construct for this [Yas Island] project” Bernard Patze, project manager, Shahama-Saadiyat Freeway, Six Construct

March 7 - 13, 2009

PROJECT UPDATE Nine thousand tonnes of steel have gone into constructing th thee roof of the theme park alone alone..

YAS ISLAND Known as the complete tourist destination, Yas Island will feature attractions such as a water park, a retail development of 300,000m2, links and parkland golf courses, a lagoon, hotels, marinas, polo clubs, apartments, villas and numerous food and beverage outlets.

The enormity of the structure can be judged by the theme park alone, which will require 2.8 million litres of air conditioning. Apart from the main theme park, Six Construct is also building the two marinas close to the theme park and part of the infrastructure projects in and around the island. Bernard Patze, project manager of Shahama-Saadiyat Freeway, Six Construct, is in charge of the freeway projects that will interconnect the island. “We have about 30 bridges to construct on this project. It is a group of six contracts we have signed with Aldar, one of them is the Shahama-Saadiyat freeway, which includes the freeway itself and all the bridges on the freeway,” says Patze. The second contract is for the bridges which will inter-connect the island. The Shahama-Saadiyat freeway is the first project to be completed, and the first opening is scheduled for February. The Shahama-Saadiyat freeway spans 50m and work on it started in March 2007. “One of the challenges of the project was not to disrupt traffic on the main Abu DhabiDubai highway in any way. Also the time frame was relatively short – we have completed the freeway in 21 months,” says Patze. One of the bridges is built over water, which is being supported by a steel structure

March 7 - 13, 2009

resting on the bottom of the channel. “Usually bridges are built on the ground and supported by scaffolding. But because of the water, we have put in the steel structure to support the scaffolding. It will be removed after the construction,” adds Patze. Final touches to the roads going to and from the bridges are currently going on, with the concrete being poured as the last layer. “Traffic direction is passing through one span and during the time we have constructed the second span. Because of the bridges, a large quantity of excavation and backfilling work is going on as well,” says Patze. Though the project is nearing completion, it depends on Aldar on the date they want the first lanes to be opened to traffic.

“It is a milestone here to create something of this size” Felix Warny, project director, Ferrari Experience, Yas Island, Six Construct

See more pictures of the Yas Island site at www.constructionweekonline.com.

YAS ISLAND Architects of the theme park

Benoy Limited

Designers and fabricators of roof

Meru from Germany

Main contractor for bridges and concrete work

Six Construct

Road works

Al Jaber (filling work)

Sub-contractor for road works

Al Jaber

Post-tensioning for bridges

VSL www.constructionweekonline.com

LEGAL OPINION

Construction disputes: The Saudi experience Law firm King & Spalding’s projects partner in Riyadh, Michael Dunphy, and James Bremen, a construction partner with the London office, discuss demand versus recession.

he Kingdom of Saudi Arabia (KSA) has not been left behind in the construction boom, which has swept the Middle East in the past decade. Strong growth supported by high oil prices has meant KSA has had increased demand for petro chemical projects, IWPP’s, power, infrastructure and new housing and retail developments. But as the world moves into global recession and major projects reach completion, construction disputes will inevitably arise. So what are the dispute resolution options for local and international developers, contractors and lenders to construction projects? This article considers: 1. dispute resolution options in KSA 2. enforcement of foreign arbitral awards in KSA 3. choice of contract law and language

Dispute Resolution Options Within KSA there are a number of choices for dispute resolution processes. The two most common are arbitration and litigation before the Board of Grievances (BoG). Arbitration is popular with nonKSA parties and ensures confidentiality is maintained. There are various venues available for arbitration in Riyadh, such as the Riyadh Chamber of Commerce, which also provides a secretariat service. Generally, international law firms who have Saudi qualified lawyers on their teams, are entitled to represent clients in arbitrations in the KSA. Where the firm has no KSA counsel, local co-counsel are often appointed to act in conjunction with the international firm.

March 7 - 13, 2009

Therefore a party seeking recognition of a foreign arbitral award in the KSA may, as part of its recognition application, expressly disclaim any right to recover any uncertain component of the award.

Choice of Law

Project partner, Michael Dunphy.

Construction partner, James Bremen.

Arbitrators may be selected by the parties but must be KSA nationals or Muslim males. Arbitration clauses are prohibited in government contracts without the consent of the Saudi Council of Ministers. Like many Gulf states, KSA does not have specific laws relating to without prejudice privilege. It is therefore vital that legal advice be sought prior to entering into any form of negotiation related to claims where there is a possibility that the dispute will proceed to arbitration or litigation.

experience, owing to the lack of specialist judicial construction tribunal or bar in the KSA (as there is in some other jurisdictions).

Board of Grievances While the predictability of judgments by the BoG has improved recently, international companies often still seek to include an arbitration procedure in their contracts where possible. The BoG has exclusive jurisdiction over disputes concerning KSA government contracts and may also decide commercial disputes. Only KSA counsel may appear before the BoG and all submissions and documents must be in Arabic. For large, highly complex construction disputes this can be disadvantageous as both KSA counsel and the tribunal may have limited

Enforcement of foreign arbitral awards in KSA KSA is a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958. However, in practice the BoG will only enforce foreign judgements and arbitral awards to the extent they are compliant with Shariah and KSA public policy principles and where the state of origin affords reciprocal recognition to awards of the KSA courts. In addition, KSA is a signatory to the rules and procedures of, and recognises awards of, the Gulf Cooperation Council Commercial Arbitration Centre, which has a seat in Bahrain. The overriding application of Shariah principles means interest may not be enforceable and uncertain contract terms, including liquidated and ascertained damages, may be declared void for uncertainty. Such considerations ought to be taken into account when structuring any contractual relationship with a KSA entity.

Often contracting parties in KSA have little option regarding the law governing their relationship. In particular, KSA government entities may not consent to the laws of another jurisdiction. Where this is not the case, (for example with Saudi Aramco, which has government dispensation to contract using foreign laws), the election of a more developed system, such as English law, may provide more certainty in complex commercial contracts. However, the overriding principles of Shariah law are likely to be taken into account in a KSA court’s judgment, regardless of the governing law. King & Spalding has significant experience dealing with construction disputes governed by KSA law and parties using firms without this resource are best advised to seek Saudi co-counsel to supplement specialist disputes advice.

Language When contracting with a KSA government entity it is generally compulsory for Arabic to be the governing language for contracts. But, in our experience it is common to negotiate the contract in English and have an Arabic translation prepared for execution.

If you would like to write for Construction Week in this column, please email cweditor@itp.com

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CONSTRUCTION SIGHTS

Saeed Khan/Getty Images

Labourers install a giant advertising board at a construction site of a high-rise commercial project in central Kuala Lumpur last week. Malaysiaâ&#x20AC;&#x2122;s deputy prime minister Najib Razzak stressed that the second stimulus package put into the country due to the economic crisis will be worth more and be more comprehensive. The first stimulus package unveiled last November was worth US $1.9 billion (RM7 billion), the figures on the second stimulus are yet to be announced.

Ali Yussef/Getty Images

March 7 - 13, 2009

US soldiers survey the scene following a recent twin bombing close to a bus station in Bayah, western Baghdad. Two nearsimultaneous car bombs ripped through the bus station killing at least 16 people. Funding of reconstruction efforts for other buildings hit by bombs during the Iraqi and Gulf wars began with the creation of the Iraq Relief and Reconstruction Fund (IRRF) in April 2003.

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CONSTRUCTION SIGHTS

Joshua Lott/Getty Images

A closed-off street leading to homes in a subdivision are seen unfinished, in Maricopa, Arizona. Maricopa, AZ was one of the fastest growing towns in America until the employment and the real estate decline swept through the country. Now, approximately 75% of residents owe more money on their mortgages than their homes are actually worth. Some developers will abandon building new homes due to the slow economy.

Jovana Obradovic/ITP Images

Construction Week visits The Greens, Dubai to find out how the real estate development is progressing. Developer Emaar designed groups of four low-rise buildings at The Greens to offer views of the community, marina and Emirates Golf Course and since its initial release, it has grown to include The Views community. www.constructionweekonline.com

March 7 - 13, 2009

PRODUCT REPORT

SAFE FROM

Stakeholders can make great advances when they come together in the name of health and safety. Fida Slayman reports.

T HARM

he picture in the first frame of the storyboard shows workers putting up formwork on a building rooftop at night. In the third frame, a plank of wood falls, landing on the ground below. During the course of this graphic narrative, the workers report the incident to their supervisor, who installs edge protection and a safety net. So goes an animated story distributed by Buildsafe UAE, a construction stakeholder group dedicated to improving health and safety practices. The storyboards are designed

Ahmed

Source: BUILDSAFEUAE

Available in different languages, storyboards aim to raise workersâ&#x20AC;&#x2122; awareness of health and safety.

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BUSINESS

CONSUMER

DATABASE

EVENTS

INTEGRATED

INTERACTIVE

NEWSPAPER

PRODUCT REPORT

minimise Source: BUILDSAFEUAE

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March 7 - 13, 2009

PRODUCT REPORT Sign boards on site are an important tool to emphasise safety.

“A lot of developers employ project management and they leave health and safety to them. For me, that’s not quite good enough” Andrew Broderick, health and safety manager, Aldar

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to raise workers’ confidence in recognising and reporting risks, one of the biggest challenges facing the industry’s health and safety experts. “There are a lot of messages in them,” says Elias McGrath, Buildsafe UAE’s administrator. “If you read them once they seem straightforward, but after a few times you get absorbed. Then, when the workers come across the situation, they think ‘OK, I’ve got to report this.’ ” Storyboards are one strategy industry experts are using to communicate the message of health and safety to their workforce. By involving its operatives and supervisors in the risk assessment process, Dutco Balfour Beatty encourages them to think critically about the situations in which they work. “If we’re doing a blockwork wall, for example,”

explains general manager Grahame McCaig, “we’ll get some of the foremen and skilled labourers in and ask them ‘what do you think is dangerous about doing this work?’ We try and prompt them to give us an answer, and when they do we’ll say ‘that’s a good point, now how would you deal with that issue?’ ” Developing a culture of health and safety, especially for workers to whom the idea is alien, takes time and persistence. The results of such initiatives, says McCaig, cannot be seen immediately. “We’ll continue to work with them to develop their skills and encourage that culture, and possibly in five or six years’ time we will get to the stage where they will say ‘I’m sorry I’m not going in there because it’s too dangerous.’” In its own bid to empower workers, Wade March 7 - 13, 2009

PRODUCT REPORT Adams has issued a management directive obliging all those on site to stop work if they feel it is unsafe. Put into action one year ago, the initiative has resulted in more than 30 reports of unsafe conditions. “I’m sure there were many more cases,” admits health and safety manager Colonel Musharraf Khan, “but the workers’ perception of risk is different. The eyes only see what the mind knows.” Until a proactive safety culture among workers takes full effect, however, direction for improving health and safety must come from contractors and developers, says McCaig. “Of course we want it to start bubbling from the bottom to the top. But in the meantime, we have to drive it from the top down,” he explains. “If the client is committed to health and safety, if he is promoting it as a major point on the agenda on his site, it’s going to be positive for the whole industry. And you can’t get any higher than a client.” As the first developer to become a full signatory member of Buildsafe UAE, Aldar Properties’ participation is signalling a change in

how the traditional responsibilities for health and safety are viewed. Andrew Broderick, Aldar’s health and safety manager, says it’s time for developers to step up their involvement. “A lot of developers employ project management to handle the site for them and they leave health and safety to them. For me, that’s not quite good enough,” he explains. “I see it as our responsibility to enforce it – it starts at the top, as they say.” Part of Aldar’s commitment to improving health and safety is through inspections, managed by a team of four who visit construction sites and report back to the company. “We monitor, we audit and we attend weekly health and safety meetings,” says Broderick. “We’re not there to manage health and safety,” he adds, “but to make sure that it’s actually done.” To win contracts, Broderick continues, contractors needs to prove they have a measurable commitment to health and safety. As a member of Aldar’s pre-qualification team, he looks carefully at a contractor’s history, accident rates and management systems. Preference is usually given to contractors who

show they have dealt effectively with health and safety issues, rather than those who claim to not have such issues at all. “If companies come in with a perfect record, you know straight away that something’s not right. We’d rather people be honest and admit they’ve had some issues,” he says. “If they can prove to us that they’ve been responsible and looked at reasons why they’ve had accidents on site, then that’s great. We’d rather that than companies who come in with an excellent safety record that we know is based on lies.” Prompted by Buildsafe UAE, many contractors are now coming forward with the fatalities and lost-time injuries (LTI) they have had on-site. Each week, the organisation distributes safety alerts, showing best practice in health and safety, and giving details of on-site accidents. The alerts outlining LTIs and fatalities are carefully rebranded, making sure the company, location and people involved are kept anonymous. Contractors that own up to mistakes, says McGrath, not only help themselves in improving future safety, but other contractors as well.

Number of Lost Time Injuries by Type / Circumstance, UAE, 2008.

Source: BUILDSAFEUAE

March 7 - 13, 2009

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PRODUCT REPORT Falls from height are the biggest cause of fatalities on construction sites.

March 7 - 13, 2009

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PRODUCT REPORT

“If we’ve got an issue, we have to be man enough to stand up and say ‘this is what happened, this is what we’ve done to prevent it from happening again’” Grahame McCaig, general manager, Dutco Balfour Beatty

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“If you have an incident and decide to hide it and clean it up so that no one knows about it, there won’t be any improvement, and it’ll probably happen again,” he explains. “Your culture will be negative, your morale will be negative, you will have delayed the work and your reputation with your client is going to be destroyed. With bad practice, there are only negatives involved.” Though these alerts are an excellent resource for preventing similar accidents, the region’s culture of secrecy and aversion to negative news prevents further advances, says McCaig. “I’ve always advocated that we have to become more open,” he explains. “If we’ve got an issue, we have to be man enough to stand up and say ‘this is what happened, this is what we’ve done to prevent it from happening again, and we want to share it because it’s important everyone knows we’ve had an issue.’” Contractors must take more responsibility for incidents happening on their site, he says. “This is a realistic expectation any-

where else in the world – we’re supposedly in a first world country and we should operate in a first world manner. I know there’s a reticence to bad news, but the only way to really start solving a problem is by admitting you’ve got one.” The region’s development of ‘megaprojects,’ such as Dubailand and Burj Dubai, create an ever-pressing need for construction stakeholders to practise openness in health and safety. “There are joint ventures and partnerships, and all the contractors and subcontractors are working together to deliver the same project,” says McGrath. “But if one contractor has an excellent safety record, and the other one doesn’t know anything about it, you’re putting each other at risk. If there’s a fatality, both projects will be stopped. You’re both getting paid by the same client, so it’s better if people work together, if there’s one benchmark for health and safety.” Formulating a unified set of regulations for health and safety in the UAE’s construction industry will go a long way in promoting best practice, says McGrath. Dubai Munic-

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PRODUCT REPORT Number of Fatalities by Type / Circumstance, UAE, 2008.

Source: BUILDSAFEUAE

“The municipality hired a consultant, who didn’t seek any feedback from any of us. No one was consulted” Colonel Musharraf Khan, health and safety manager, Wade Adams

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ipality’s recently amended regulations provide a baseline from which other regulators, such as Jafza (Jebel Ali Free Zone Authority) and Tecom (Dubai Technology and Media Free Zone Authority) add their own health and safety policies. “There’s a challenge for regional bodies who deliver projects right through Dubai,” explains McGrath. “Safety managers have to understand each body’s regulations inside and out.” The industry, he continues, is “crying out for one regulatory body,” a sentiment echoed by McCaig. “It would be far better,” he says, “if we had a universal set of regulations that everyone had to comply with.” Dubai Municipality’s amendments to its own regulations, though applauded by the industry, were completed without conferring with the contractors and subcontractors who have to work under them, Khan points out. “The municipality hired a consultant, who didn’t seek any feedback from any of us. No one was consulted.” McGrath agrees the construction industry would have been able to make valuable contributions to the new code. “They

cried out for a bit of collaboration; they would have liked the opportunity to see the document and to comment on it before it was finalised.” Nevertheless, the construction industry still has a crucial role to play in advancing existing health and safety practices, particularly in times of economic slowdown. When many contractors are under pressure to cut costs, the temptation to slash health and safety budgets should always be avoided, says McCaig. “We’ve got to break this connotation with safety and cost. People who view safety as a cost will cut that cost, and that is a concern.” Safety should instead be regarded as an investment, he continues. “If contractors continue to invest in safety, they will get a return on that investment. Safety should not be associated with cost.” The construction industry has seen a “huge improvement in the standards of health and safety over the last five to six years,” adds McCaig. With the right amount of collaboration, initiative and commitment, few doubt that future health and safety practices will continue to progress. March 7 - 13, 2009

BUSINESS LEADS

Contracts and tenders are published free of charge. All information should be sent to: cweditor@itp.com

CALENDAR OF EXHIBITIONS & EVENTS 2009 EVENT: Saudi PMV show SECTOR: Three days of exhibition and 30 workshops covering technical, safety, maintenance and training. DATE: 8 - 10 March VENUE: Dhahran Exhibition Centre KSA EMAIL: helen.voong@itp.com WEBSITE: www. saudipmvshow.com EVENT: Front roof and cladding. SECTOR: Two-day trade show. DATE: 16 - 18 March VENUE: Expo Centre Sharjah PHONE: +971 657 70000 WEBSITE: www.eventseye. com EVENT: Facilities Management Conference SECTOR: Facilities management DATE: 30 March VENUE: Mina A’ Salam, Dubai EMAIL: helen.voong@itp.com WEBSITE:www.itp.net/ events/fmconference EVENT: Building Intelligence and Construction IT SECTOR: IT, Construction DATE: 31 March VENUE: Madinat Jumeirah EMAIL: helen.voong@itp.com EVENT: Construction Week Saudi Arabia Conference 2009 SECTOR: Forum on doing business and carrying out

March 7 – 13, 2009

project operation practices in the Kingdom. DATE: 13 May VENUE: Habitat hotel PHONE: + 971 4 4356127 EMAIL: oscar.wendel@itp. comit.com EVENT: GCC Leadership Summit 09 DATE: 29 April VENUE: Mina A’Salam, Madinat Jumeirah PHONE: +971 4 4356125 WEBSITE: www.itp.net/ events/cwseasonpass EVENT: Construction Week Qatar Briefing 2009 DATE: 4 June PHONE: +971 4 4356125 WEBSITE: www.itp.net/ events/cwseasonpass EVENT: Construction Week Iraq Briefing 2009 DATE: 15 June VENUE: Holiday Inn hotel PHONE: +971 4 4356125 WEBSITE: www.itp.net/ events/cwseasonpass EVENT: DWRW 2009 SECTOR: Doors, windows, roofs and walls expo. VENUE: Expo Centre Sharjah DATE: 16 - 18 March EMAIL: espofair@sina.com PHONE: +971 657 70000 EVENT: Interiors and Buildex 2009 DATE: 16 - 18 March VENUE: Oman International Exhibition Centre WEBSITE: www.

interiorsbuildex.com EVENT: Buildex 2009, the 11th Saudi International Building and Construction Exhibition DATE: 8 - 12 March VENUE: Dhahran International Exhibitions Centre WEBSITE: www.bme-global.com EVENT: Infrastructure Syria 2009 DATE: 6 - 9 April PHONE: + 963 11 211 93 12 EMAIL: info@infrastructuresyria.com WEBSITE: www. infrastructuresyria.com EVENT: Saudi Building and Interiors Exhibition (SBIE) DATE: 12 - 16 April VENUE: Jeddah Centre for Forums and Events WEBSITE: www.acexpos.com EVENT: Project Qatar 2009, the 6th International Trade Exhibition for construction technology, building materials and equipment DATE: 27- 30 April VENUE: Qatar International Exhibition Centre WEBSITE: www.ifpqatar.com EVENT: Project Near East 2009, the 6th International Trade Exhibition for construction technology, building materials and equipment and the 6th International Rebuild Iraq DATE: 4 - 7 May WEBSITE: www.ifpemirates.com

EVENT: Libya Build 2009, the 6th International Building and Construction Exhibition DATE: 18 - 21 May PHONE: + 218 21 334 2193 EVENT: Project Lebanon 2009, the 14th International Trade Exhibition for Construction Building Materials Equipment DATE: 16-19 June WEBSITE: www.ifpexpo.com EVENT: 5th Build Asia International Exhibition and Conference. DATE: 1 - 3 August VENUE: Karachi Expo Centre, Pakistan EMAIL: info@buildasia.net EVENT: Turkmen Construction - 2009 and International Scientific Conference DATE: 20 - 22 August FAX: + 993 12 351352 EMAIL: expo@online.tm EVENT: Building and Construction Indonesia 2009 DATE: 14 - 17 October VENUE: Jakarta International Expo, Kemayoran PHONE: + 62 (0) 21 - 316 2001 FAX: + 62 (0) 21 - 316 1981 / 2 EMAIL: info@pamerindo.com EVENT: Building and Construction Exhibition DATE: 21 – 27 November VENUE: Kuwait International Fair Ground WEBSITE: http://www.kif.net

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BUSINESS LEADS BAHRAIN Issuer: Bahrain Radio and TV Corporation Tender No: 5/2008 Description: Supply, installation and commissioning of 10KW Solid State Digital (DVB-T) Ready Transmitter for CH 44. Closes: 25 March Bond: BHD1000 Contact: Tender Board’s Office at Al Moayyed Tower, Seef Area, 7th floor, Kingdom of Bahrain Issuer: Ministry of Health Tender No: 107/09 Description: Supply and installation of one passenger lift at Jidhaf’s

Maternity Hospital. Closes: 11 March Fees: BHD15 Bond: BHD500 Contact: Tender Board’s Office at Al Moayyed Tower, Seef Area, 7th floor, Kingdom of Bahrain Issuer: Bahrain Civil Aviation Affairs Tender No: EMD/9/ MO/40.00 Description: Replacement of existing fire water tank at Bahrain International Airport. Closes: 18 March Bond: BHD500 Contact: Tender Board’s Office at Al Moayyed Tower, Seef Area, 7th floor,

CURRENT STEEL PRICE INDICATIONS Data provided by www.mesteel.com: linking steel buyers and sellers in the Middle East

Indicative Steel Prices For Billets - Blooms

Prices In US $/t CFR Dubai 400 – 450

CIS, Turkey

Reinforcing Bars

470 – 500

Turkey

Angles

525 – 550

Turkey

Beams - channels (EN+UB/UC)

600 – 650

Far East, India, S. Africa

Wire Rods

475 – 525

Turkey

Hot Rolled Plates

600 – 650

CIS

Hot Rolled Coils

430 – 470

CIS, India, Iran

Cold Rolled Coils

500 – 520

CIS

Hot Dip Galv. coils, HR base 275g/m2

610 – 650

India

Hot Dip Galv. coils, CR base, 1mm, 275g/m2

610 – 650

India

Country of Origin

Prepainted Galv. coils, 0.35

850 – 900

Far East, India

Tinplate 0.32mm

1200 – 1250

Far East, W. Europe

SS HR Coils 304 Base

1900 – 2000

Far East, W. Europe, Brazil, S. Africa

SS HR Coils 316L Base

3500 – 3600

Far East, W. Europe, Brazil, S. Africa

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Kingdom of Bahrain Issuer: Bahrain Petroleum Company Tender No: T090018 Description: Construction of six new duplex houses in Awali. Closes: 18 March Fees: BHD50 Bond: BHD2,500 Contact: www.tenderboard.gov.bh Issuer: Tamkeen (Labour Fund) Tender No: LF-030 Description: Enterprise Development Support Agency. The second phase. Closes: 8 April Fees: BHD50 Bond: BHD4000 Contact: www.tenderboard.gov.bh

EGYPT Issuer: Cairo Airport Co., The Cashier Description: Implementing the infrastructure for buildings and service establishments of passengers Terminal No. 3 on the Autostrad. Closes: 10 March Fees: EGP5ooo Bond: EGP2,000,000 Contact: Second Floor at Terminal Building No. 1, Cairo Airport, Cairo Tel: +20 22653115 Issuer: West Delta Electricity Production Co., The Cashier Description: Electrical equipment/ instruments installation package pertaining to Abu Qir. That includes design, furnish, receive at site, store, install,

test and place into successful operation. Closes: 9 April Fees: EGP17,000 Bond: EGP4,500,000 Contact: 7 Riad Pacha St., Glim, Alexandria Tel: 03 - 5761375 Issuer: Egyptian Electricity Transmission Co., Central Egypt Electricity Zone, The Cashier Description: Request of offers from international bidders for implementing Gebel El Zeit, GIS type, 220/22 kV substation in El Canal Zone. Closes: 24 March Fees: EGP14000 Bond: EGP1,700,000 Contact: 5 Sixth October St, El Mounib, Giza Tel: 02 - 35716390 Issuer: Egyptian Electricity Transmission Co., Central Egypt Electricity Zone, The Cashier Description: Supplying 2 x 125 MVA, 22/ 22/ 220 kV transformers for completion in 16 months. Closes: 31 March Fees: EGP11000 Bond: EGP561,000 Contact: 5 Sixth October St, El Mounib, Giza Tel:02 - 35716390 Issuer: West Delta Electricity Production Company Description: Request of offers from international manufacturers regarding the mechanical works and piping package pertaining to units 6 and 7 at Abu Qir power station of 650MW capacity each under funding from Kuwaiti Fund for Social and Economic Development.

March 7 – 13, 2009

BUSINESS LEADS Closes: 10 March Fees: EGP3000 Bond: EGP2,000,000 Contact: West Delta Electricity Production Company, The Cashier, 7 Riad Pacha Street, Glim, Alexandria Tel: 03- 5761375 Issuer: East Delta Electricity Production Company Description: Request of offers from eligible bidders for the steam generators (boilers) and auxiliaries package pertaining to Ain El Sukhna supercritical thermal power plant of 2 x 650 MW gas/oil fired units. Closes: 16 March Fees: EGP1500 Bond: EGP9,000,000 Contact: East Delta Electricity Production Company, The Cashier, Shebin El Kom Street, behind the Agricultural Directorate Building, Ismailiya Tel: 064- 3371906 Issuer: Ministry of Water Resources and Irrigation, the Mechanical and Electrical Department, The Stores Department Description: Request of offers from specialised eligible bidders for the construction, civil works, supply and erection of mechanical and electrical equipment pertaining to an irrigation pumping station at Kilo 57 on the guides of branches 1 and 2 of Toshki Canal comprising 4 + 1 pumping units of 5.7 m3/ second discharge each at 21.5m maximum static lift. Closes: 17 March Fees: EGP1500 Bond: EGP1,500,000

March 7 â&#x20AC;&#x201C; 13, 2009

Contracts and tenders are published free of charge. All information should be sent to: cweditor@itp.com

Contact: Ministry of Water Resources and Irrigation Tel: 02- 22069294/5/6 Issuer: East Delta Electricity Production Co, The Cashier Description: Request of offers from specialised local contracting companies for the site preparation package pertaining to Ein Al Sukhna 2 x 650 MW steam fired power station of critical pressures. Closes: 12 April Fees: EGP1500 Bond: EGP900,000 Contact: Shebin El Kom St, Behind the Agricultural Directorate Building, Ismailiya. Tel: 064- 3371906 Issuer: Egyptian Authority for Maritime Transport Safety, The Cashier Description: Request of offers from specialised companies for the upgrading of operating programmes, maintenance and repair of the electronic systems of the Gulf of Suez and Aqaba Gulf entrances in Sharm El Sheikhâ&#x20AC;&#x2122;s Vessels Traffic Information Management System. Closes: 30 March Fees: EGP5600 Bond: EGP703,000 Contact: Alexandria Port, Customs Gate 1, Ras El Tin, Tel: 03 - 4802031

OMAN Issuer: Oman Electricity Transmission company Tender No: 46/2009 Description: Upgrading conductor size from existing to 400mm between

Mahdha Bureimi grid stations area-Dhahira region and replacing 132 KV single circuit line on wooden poles dank-Al Hail by double circuit on steel towers. Closes: 13 April Fees: RO1500,000 Contact: www.tenderboard.gov.com Issuer: Ministry of Transport and Communication Tender No: 47/2009 Description: Development of Muscat and Salalah international airports. Closes: 23 March Fees: RO1500,000 Contact: www.tenderboard.gov.om Issuer: Oman Refinery Company LLC Tender No: 45/2009 Description: Static equipment turn around and inspection works (2010 shutdown). Closes: 13 April Fees: RO1500,000 Contact: www.tenderboard.gov.om Issuer: Ministry of Housing Tender No: 69/2009 Description: Construction of 11 housing units, Majlis and a mosque. Closes: 20 April Fees: RO191,000 Contact: www.tenderboard.gov.om Issuer: Oman Drydocks Tender No: 63/2009 Description: Design, manufacture, installation and commissioning of machinery equipment. Closes: 6 April Fees: RO1461,000 Contact: www.tenderboard.gov.om

Issuer: Ministry of Information Tender No: 79/2009 Description: Design, supply, delivery, installation and comissioning of radio automation and digital media archive system for radio sultanate of Oman. Closes: 27 April Fees: RO325,000 Contact: www.tenderboard.gov.om Issuer: Ministry of Information Tender No: 78/2009 Description: Technical fit out for the new digital HD TV studio complex in Muscat and the refurishment of Salalah TV centre. Closes: 27 April Fees: RO1500,000 Contact: www.tenderboard.gov.om Issuer: Ministry of Regional Municipalities and water Resources Tender No: 77/2009 Description: Constuction of 62 houses at Al Jiniyah residence to hospital planned subdivision at Wilayat Sur. Closes: 27 April Fees: RO800,000 Contact: www.tenderboard.gov.om Issuer: Ministry of Interior Tender No: 76/2009 Description: Construction, completion and maintenance of Wali residence at Yanqul. Closes: 27 April Fees: RO160,000 Contact: www.tenderboard.gov.om

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BUSINESS LEADS Issuer: Oman Ministry of Education Tender No: 75/2009 Description: The construction, completion and maintenance of 30 class rooms at Al Hajar, Wilayat. Closes: 20 April Fees: RO370,000 Contact: www.tenderboard.gov.om Issuer: Oman Ministry of Education Tender No: 74/2009 Description: Construction, completion and maintenance of proposed Dhahira regional office at Ibri. Closes: 20 April Fees: RO300,000 Contact: www.tenderboard.gov.om Issuer: Oman Ministry of Education Tender No: 73/2009 Description: Supply of furniture and equipment for schools, offices and houses for the 2009/2010. Closes: 20 April Fees: RO150,000 Contact: www.tenderboard.gov.om Issuer: Oman Drydock Company Tender No: 72/2009 Description: Design, manufacture, installation and commissioning of one lot of shop crane to Oman Drydock Company. Closes: 20 April Fees: RO1500,000 Contact: www.tenderboard.gov.om Issuer: Ministry of Health Tender No: 71/2009 Description: Supply of pharmaceuticals for the

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Ministry of Health. Closes: 13 April Fees: RO150,000 Contact: www.tenderboard.gov.om

QATAR Issuer: Qatar Petroleum Tender No: GT09102500 Description: Provide two Construction/Workboats services on all QP Offshore facilities and operational structures. Closes: 22 March Bond: QAR 500,000 Contact: Contracts Department – Corporate Division, Qatar Petroleum, PO Box 3212, Royal Plaza, G Wing, 4th Floor, Room G11, Doha Issuer: Qatar Petroleum Tender No: ST09100700 Description: Replacement of deep well anode ground beds at tank farm. Closes: 23 March Fees: QAR200 Bond: QAR5000 Contact: Contracts Department – Corporate Division, Qatar Petroleum, PO Box 3212, Royal Plaza, G Wing, 4th Floor, Room G11, Doha Issuer: Qatar Petroleum Tender No: GT09102800 Description: Refurbishment and external decoration of various accomodations in Dukhan Township. Closes: 29 March Fees: QAR500 Contact: Contracts Department – Corporate Division, Qatar Petroleum, PO Box 3212, Royal Plaza, G Wing, 4th Floor Room G11, Doha

Issuer: Qatar Petroleum Tender No: GT09103400 Description: Interface of DAS system to existing energy power consumption metres in the thirty nine stations in the Dukhan Fields. Closes: 5 April Fees: QAR500 Bond: QAR200,000 Contact: Operations Division, Qatar Petroleum, PO Box 3212, Royal Plaza,G Wing,4th Floor Rm G13, Doha Issuer: Qatar Petroleum Tender No: GT09103100 Description: Construction of new training centre at Mesaieed. Closes: 5 April Fees: QAR500 Bond: QAR300,000 Contact: Engineering Division, Qatar Petroleum, PO Box 3212, Dana Tower, 3rd Floor, Room 309, Doha

UAE Issuer: Dubai Electricity and Water Authority Tender No: CE/0707/2008 Description: Supply, installation and commissioning of 33/11kv substations. Closes: 10 March Bond: AED5000 Contact: Dubai Electricity and Water Authority PO Box 564, Dubai, UAE Issuer: Dubai Electricity and Water Authority Tender No: CE/0005/2009 Description: Installation and commissioning of 11 KV cables. Closes: 10 March

Bond: AED5000 Contact: Dubai Electricity and Water Authority PO Box 564, Dubai, UAE Issuer: Dubai Electricity and Water Authority Tender No: CNE/0114/2008 Description: Hassyan Power and Desalination Complex sea-water in-take and outfall system. Closes: 11 March Bond: AED5000 Contact: Dubai Electricity and Water Authority PO Box 564, Dubai, UAE Issuer: Dubai Electricity and Water Authority Tender No: CE/0734/2008 Description: Construction of warehouses and associated facilities at Warsan. Closes: 11 March Bond: AED5000 Contact: Dubai Electricity and Water Authority, PO Box 564, Dubai, UAE Issuer: Dubai Electricity and Water Authority Tender No: CE/0194/2008 Description: Supply, installation and commissioning of online transformer dry-out system. Closes: 12 March Bond: AED500 Contact: Dubai Electricity and Water Authority, PO Box 564, Dubai, UAE Issuer: Federal Electricity and Water Authority Tender No: 1M/2008 Description: Relocation of 3MIGD R.O. Plant Fujairah to Ajman. Closes: 30 March Bond: AED500 Contact: PO Box 1672 Dubai, UAE

March 7 – 13, 2009

PROJECT FOCUS

UAE PROJECTS DATABASE - BUILDING PROJECTS FOCUS PROJECT TITLE

CLIENT

CONSULTANT

MAIN CONTRACTOR

VALUE / VALUE RANGE (AED MN)

PROJECT STATUS TYPE OF PROJECT

Uptown MotorCity, Dubailand

Union Properties

Burt Hill

Al Futtaim Carillion

376

project under construction

Residential Development

Royal City Seasons Hotel in Abu Dhabi

City Seasons Group

James Cubitt & Partners

Not Appointed

101 - 250

bidding underway for the main contract

Hotel

Ritaj Mixed-Use Complex in DIP

Dubai Investments Real Estate Co.

Al Jabal Consultants

Robust Contracting

155

project under construction

Mixed Use

NCC Harmony Towers at DuBiotech

NCC Urban

Islamic Architects

Al Mubarakia Contracting

408

project under construction

Mixed Use

Al Falah Development in Abu Dhabi - 2500 Villas

ALDAR Properties

Al Torath Engineering Consultants

El Seif Engineering & Contracting Co.

251 - 500

project under construction

Residential Development

Trinity Heights in Jumeirah Village

Paramount Properties

Veritas Global FZE

Not Appointed

215

project under design

Mixed Use

Al Naboodah Showroom in Mussafah

Al Naboodah Automobiles

Makan Consulting Engineers

Emirates & Al Nasr Building & Contracting

project under construction

Commercial Buildings

Yasmin Tower 1 in RAK

Asteco

Consulting Engineering Group

Jog Union Engineering

project under construction

Mixed Use

The Wings in Najmat on Reem Island

Dar Al Dhabi Holding

KEO International Consultants

Not Appointed

101 - 250

project under design

Mixed Use

Burj Al Fattan in Jumeirah

Al Fattan Properties

LW Design

Not Appointed

31 - 100

bidding underway for the main contract

Hotel

Frankfurt Sports Tower 1 in DSC

Memon Real Estate

Al Hatmy Design & Engg. Cons.

Not Appointed

bidding underway for the main contract

Residential Buildings

The Diamond Tower in Dubai Sports City

First Group

Badri & Bensouda

United Engineering Construction (UNEC)

31 - 100

project under construction

Residential Buildings

Lilies Tower in Emirates City

R Holdings

Adnan Saffarini

Abou Seif Building Contracting Co

project under construction

Residential Buildings

Al Jazeera Club Tower

Al Jazeera Capital Real Estate

Atkins

Al Habtoor Engineering

project under construction

Mixed Use

Sea View Club Hotel and Apartments

Das Real Estate

Al Wasl Al Jadeed Consultants

Not Appointed

31 - 100

bidding underway for the main contract

Mixed Use

Mixed-Use Development on Marjan Island

Solanki Holdings & Investments

Kassian (Canada)

Not Appointed

2,450

project under design

Mixed Use

Muhara 1 at Jumeirah Village

Khuyool Investments

Maks & Partners

Not Appointed

16 - 30

project under design

Residential Buildings

Sandoval Townhouses & Residences in Jumeirah Village

Bavaria Gulf

Diar Consult

Al Sayegh Contracting

101 - 250

project under construction

Residential Development

Al Gurm Complex in West Abu Dhabi - Banyan Tree Hotel

ALDAR Properties

Dar Al Handasah

Not Appointed

101 - 250

bidding underway for the main contract

Hotel

Fairview Tower in Business Bay

Deyaar

Arex Consultants

Al Huda Contracting

31 - 100

project under construction

Residential Buildings

32 Villas in Al Barsha

Mohammed Al Nasser

City Space Engineering Consultancy

Moal Contracting

31 - 100

project under construction

Residential Development

Le Diamond Towers at Waterfront

Darvesh Group

Aedas

Not Appointed

409

project under design

Mixed Use

Altitude Tower in Emirates City

BL Properties

Adnan Saffarini

Mehwal Building Contracting

project under construction

Residential Buildings

99 villas in the Flame Tree Ridge at the Jumeirah Golf Estates

Leisurecorp

Mott MacDonald

Al Nekhreh Contracting

101 - 250

project under construction

Residential Development

The Kingdom of Sheba Resort on Jumeirah Palm

International Financial Advisors (IFA), Dubai

Wimberley Allison Tong & Goo

Dubai Contracting Co (DCC)

251 - 500

project under construction

Mixed Use

The Cavendish 1 in Awali City

UK Capital Investments Group(UKCIG)

Adnan Saffarini

Not Appointed

31 - 100

project under design

Residential Buildings

The Binary in Business Bay

Omniyat

Dubarch

Dutco Balfour Beatty

150

project under construction

Commercial Buildings

Garden Heights in Jumeirah Village

Dheeraj & East Coast L.L.C

Arkiteknik International

Not Appointed

bidding underway for the main contract

Residential Buildings

March 7 - 13, 2009

www.arabianbusiness.com/construction

PROJECT FOCUS PROJECT TITLE

CLIENT

CONSULTANT

MAIN CONTRACTOR

VALUE / VALUE RANGE (US $ MN)

PROJECT STATUS TYPE OF PROJECT

Julphar Towers in RAK

RAK Properties

Arenco

Al Hamad Contracting

116

project under construction

Mixed Use

Goldcrest Dreams in Ajman

Star Giga Establishment

Adnan Saffarini

Sky Construction

190

project under construction

Residential Development

Head Quaters in Jumeirah Village

Dheeraj & East Coast L.L.C

Arkiteknik International

Not Appointed

109

project under design

Commercial Buildings

Park Corner Building in Jumeirah Village

Test Contracting

Adnan Saffarini

Test Contracting

project under construction

Residential Buildings

The Abjar Tower in Jumeirah Village South

Khuyool Investments

Maks & Partners

Ali Moosa & Sons Contracting

177

project under construction

Residential Buildings

Emke Group Headquarters

Emke Group/Line Investment

Al Salaam Consulting

Ali & Sons Contracting

31 - 100

project under construction

Commercial Buildings

Noor Al Ain Project in Al Ain

Aldar Properties

Benoy Architects

Not Appointed

545

award awaited for the construction contract

Mixed Use

Burj Al Fattan in Jumeirah

Al Fattan Properties

LW Design

Not Appointed

31 - 100

bidding underway for the main contract

Mixed Use

Metropolis Tower in Business Bay

Deyaar

La Casa Engineers & Architects

Emirates MAN

project under construction

Commercial Buildings

Centro Rotana Hotel on Airport Road

Al Badie Trading & Investment

LW Design

Polensky and Zoellner

31 - 100

project under construction

Hotel

St. Regis Hotel & Residences on Saadiyat Island

Tourism Development & Investment Co. (TDIC)

Woods Bagot

Not Appointed

409

bidding underway for the main contract

Mixed Use

Hannover Square in Jumeirah Village

ACW Holdings

Al Hawraa Engineering Consultants

Haqqani Contracting

147

project under construction

Residential Buildings

Fortune Bay in Business Bay

Fortune Investment Group

Dimensions Engineering

Not Appointed

16 - 30

project under design

Commercial Buildings

Super Slim Tower Along Sheikh Zayed Road

Tasameem Real Estate

Atkins

Not Appointed

101 - 250

project under design

Mixed Use

Centro Business Traveller Hotel at Dubai World Central

Daman Asset Management

LW Design

Not Appointed

101 - 250

project under design

Hotel

Bayswater at Business Bay

Omniyat

Dubarch

China State Construction & Engineering

project under construction

Commercial Buildings

The Skyscraper in Business Bay

Al Attar Real Estate

Canadian Consultants

Caterpillar Contracting

300

project under construction

Residential Buildings

The Fronds in Jumeirah HeightsFronds A

Nakheel Corporation

Arenco

Consolidated Contractors International Co;

101

project under construction

Residential Development

Prodigy in Jumeirah Village

MiNC Property Enterprises

Tijan Engineering

Gannon Dunkerly & Company

2.5 - 15

project under construction

Residential Buildings

The Bridge Tower in Dubai Sports City

First Group

Shankland Cox

China Railway & Engineering Corporation

project under construction

Commercial Buildings

Tasameem 1 at the Business Bay

Tasameem Real Estate

National Engineering Bureau

Construction & Reconstruction Engg. Co;

101 - 250

project under construction

Commercial Buildings

Tasameem 2 at the Business Bay

Tasameem Real Estate

National Engineering Bureau

Construction & Reconstruction Engg. Co;

101 - 250

project under construction

Residential Buildings

Note : The above information is the sole property of Ventures Middle East LLC and cannot be published without the expressed permission of Ventures Middle East LLC, Abu Dhabi, UAE

www.arabianbusiness.com/construction

March 7 - 13, 2009

SPECIALIST SERVICES

To advertise in this section please contact: Bipin Soneji Tel.: +971 (0)4 435 6119 Email: bipin.soneji@itp.com Building Materials

Construction Building Materials

Steel Supply

Contractors and Manufacturers

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Flooring

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March 7-March 13, 2009

SPECIALIST SERVICES

To advertise in this section please contact: Bipin Soneji Tel.: +971 (0)4 435 6119 Email: bipin.soneji@itp.com Construction/Building Materials

Construction / Building Materials “ FLOSTO ” HOT PRESS MOULDED GRP PANEL TANKS (WRC, U.K. CERTIFIED) SUPPLY AND INSTALLATION

Union Fiber Glass Factory Tel: 04-8802522

Fax: 04-8802747

Mobile: 050 1408400/6256595 Email: unionfbr@eim.ae

Readymix

March 7-March 13, 2009

Steel Sheet Piling

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SPECIALIST SERVICES

To advertise in this section please contact: Bipin Soneji Tel.: +971 (0)4 435 6119 Email: bipin.soneji@itp.com Formwork and Scaffolding Systems

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Construction Chemicals

Hard Landscaping Supplier

March 7-March 13, 2009

ON-SITE TALK

Diversification is the key to success David Oayda, general manager of Qatar-based project management team Asteco, tells

us how companies can survive the economic slump in the real estate market.

ike Charles Darwin said, ‘adapt, migrate or die’. This is an important fact for modern businesses to understand, along with the cyclical nature of markets, in order to plan the use of resources and expertise accordingly. Companies need to consider their ability to adapt as a primary facilitator to long-term success or else be forced to restructure by changing economies or business environments. David Oayda, general manager, Asteco.

Market Forces The real estate market is particularly cyclical in nature, as factors such as inflation, demographics, and economic growth affect prices and confidence in the sector. It’s these changing market conditions that alert us to the fact that there is no status quo and that what goes up, must come down. The Dubai market has seen some of the fallout from unrealistic expectations in a dynamic market; mortgage restructuring, speculation and crises of confidence have led to a drop in sales and speculative interest, forcing some property companies to make redundancies. As the saying goes ‘don’t put all your eggs in one basket.’ Real estate companies now need to listen to these market forces and understand what the market wants and needs, and more importantly, to know the needs of a changing market in advance. This means not just a full range of property on the books, but also a full range of services on offer. Asteco’s extensive portfolio of services, coupled with our experience, means that we’ve been able to grow across the sector as a whole; taking into account the varying needs of buyers, sellers and developers and

March 7 - 13, 2009

being involved with these stakeholders at every stage.

Stages of the market Perhaps the easiest way to explain the need for diversification is to consider the different stages of the market and the different needs at each stage. In the early adoption and growth stages of a property market, it’s important to offer services which provide the necessary and relevant information to allow investors and developers to make informed choices. Services such as market research, valuation, design and feasibility studies are critical as they enable the market to grow and evolve whilst manag-

ing future risk. Clients are looking for companies that can offer them creative and competitive advice and solutions. The strength of the company’s experience and knowledge is therefore critical. It’s important not to underestimate the importance of these early stages, in order for a strong sales market to be sustainable. Although sales in some of the more mature markets in the region have begun to ease off, new developments haven’t stopped completely, which means that companies that are able to provide services to cater for different elements of the market will continually be in a strong position. As the market begins to mature and more properties progress towards the handover stage, it gives rise to a multitude of consultancy-based services, which provide the market with what it’s looking for; advice and support on how to manage investments most profitably. The growth of the real estate sector, which at present is a nascent market, has given rise to the need for property valuation services by certified valuers who are in the best position to assess

CURRICULUM VITAE

David Oayda has a vast range of experience in real estate gained since joining the industry in the mid 80s. He has been involved in all facets of the real estate business from property management to project management, conducting feasibility studies and highest and best land use methods. He has personally been responsible for several developments from inception to completion, from the management of the construction to the marketing and selling phases. Oayda has been within the real estate industry for 17 years, dealing in a cross section within the industry, his business skills include: management of over 400 staff and implementation of various technological systems keeping abreast best practice and systems.

the market value of properties and to assist banks in the prudent management of risk associated with exposure to mortgage finance. Strata management services have also become increasingly popular as the secondary market begins to emerge here in Qatar. Strata management incorporates facility, property and ownership association management and represents the different branches available to property companies on which to build revenue and long-lasting customer relationships, as investors often look for companies to manage a portfolio of properties on their behalf. The recent dip in the fortunes of the maturing property market has meant that some companies have left themselves wide open to risk. In the case of the GCC, sales have dropped. Redundancies are symptomatic of a market that didn’t worry about the worst case scenario. By having a diversified business, you’re able to effectively manage your talent pool across a number of sub-divisions. This means the ability to move resources around your business and reduce exposure to market fluctuations. A successful business needs to be all things for all people, servicing developers, investors and banks. To do this requires constant monitoring of external market forces to understand the market fully and a willingness to think long-term and be able to quickly adapt to change to manage risk. Like any other market, it’s survival of the fittest in the real estate sector.

If you would like to write for Construction Week in this column, please email cweditor@itp.com

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AlQouz Industrial Area 3 th 8 St. Community #368 Plot #443 Shed. #16 Tel: +97143235367 Fax: +97143235368 Email: Syed.fazalullah@mts.com.sa