Me consultant september 2015

018 sepTeMBer 2015

InsIghT And AnAlysIs fOr cOnsTrucTIOn specIAlIsTs

Insight

Increasing productivity with the non-visual spectrum On Topic

Making cities smart and future proof Analysis

Decoding the value-add of project management

SETTINg THE PACE

Tarek Shuaib on how Pace has shaped the face of Kuwait over the last five decades

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CONTENTS

September 2015

04 04

On topic

09

newS and VIewS frOm acrOSS the mIddLe eaSt OnLIne newS

CPI’s digital platform for construction news

09

14

On tOpIc

Making a future city smart, efficient and sustainable

14 14

In practice anaLySIS, InSIghtS and InterVIewS

20 34

InterVIew

Tarek Shuaib narrates Pace's growth story and its role in shaping the face of Kuwait

20

anaLySIS

Identifying misconceptions about project management and unlocking its potential

26

InSIght

Studying the non-visual effects of light and its ability to manipulate human performance

32 32

32

26

On site caSe StudIeS, OpInIOnS and SnapShOtS SpecIfy me

Steven McFadden tells us why you should opt for nora flooring systems

34

OpInIOn

William Bennett reflects on how to execute a successful landscape design & build contract

36

cOmpany newS

Dubai Parks and Resorts expenditure tops $1 billion

40

me cOnSuLtant awardS

Celebrating the specialists and multi-disciplinary construction consultants in the GCC

36 September 2015 Middle East Consultant 3

on ToPIC roundup

online L AU N C H PA R T N E R

Middle East Consultant’s home on the web MoST PoPULAR

1

EDIToR'S CHoICE

READERS' CoMMEnTS

Dredging the New Suez Canal in Egypt

“There were some impressive numbers being thrown around after [Indian prime Minister] narendra Modi’s visit to the uAE – not least, the billions being put into a fund for much-needed infrastructure. But to achieve such ambitious plans India will have to make doing business much easier for foreign firms. Buying land there is a nightmare and there’s a whole host of bureaucratic complications and legal oddities that firms need to grapple with.”

Abu Dhabi approves 26 major projects in second quarter

Total floor area of developments given green light triples to 2.3 million square metres, Abu Dhabi Urban Planning Council says

2

PHoTo GALLERIES Jobs advice: What Gulf construction firms

look for when hiring Top trends driving recruitment in the sector

3

The new waterway marks a significant achievement by men and machines.

See photo galleries at: meconstructionnews.com/photos

Dubai set to break new records with world’s

tallest residential tower Planned 711m-tall tower to be part

Name withheld; response to story ‘Modi visit: UAE, India aim to raise $75bn infrastructure fund’

of Meydan One development, which will also include world’s longest indoor ski slope

4

FIFA turmoil unlikely to impact Qatar project

READER PoLL What is your view of the UAE property market?

pipeline – experts Gulf state’s ambitious

40% 26%

construction plans will flourish with or without 2022 World Cup, industry executives say

5

Dubai Parks and Resorts’ expenditure tops $1bn

VIDEo

Meydan One, Dubai’s latest megaproject

developer looks to meet

development is set to include the world’s tallest residential tower, longest indoor ski slope and largest dancing fountain.

October 2016 project deadline

See videos at: meconstructionnews.com/videos

Second-quarter costs came to $218m as theme-park

Another ‘bubble’ is about to burst

The boom is over, prices will fall further

21%

11%

The ‘stabilisation’ is a positive sign

Prices will start rising again soon

Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com

4 Middle East Consultant September 2015

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WELCOME

Editor’s note

Shedding some light

O

ne of the joys of journalism has been the opportunity to meet interesting people from different walks of life and share their stories with the world.

In this issue of Middle East Consultant, I’ve had the chance to address a number of topics that have been overlooked and some undervalued, the most interesting being the non-visual effect of light and its application in lighting design in various built environments.

Many of you must already know that light intensity, spectrum, colour, timing, pattern of exposure – all play a significant role in lighting, but did you know that this kind of planned artificial lighting is used to manipulate a person’s performance?

In retail, for example, it can even draw you to certain products at a store and entice you to make a purchase! (P.S.: Now you know why you end up making impulse buys for things you don't really need!)

Another topic I was excited to write about in this issue was smart cities. With every central government around the world working towards making our cities more intelligent, it was good to have some insight, beyond the obvious technological advancements into the infrastructure side of things.

Sustainable products and materials like bio-concrete with capabilities to purify polluted air and self-healing concrete that uses bacteria to heal cracks when a building is ageing will ensure that our cities are not only smart but future-proof as well.

Lastly, speaking to project managers and helping them shed light on the value of their job in construction was rewarding.

We're all also extremely excited about the ME Consultant Awards coming up in December and we encourage you to send in your nominations as soon as possible.

I’m certain you will enjoy reading this issue as much as I enjoyed putting it together for you!

Davina Munro, Deputy Editor, Middle East Consultant

6 Middle East Consultant September 2015

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SMArt citieS What to expect on the infrastructure front from a smart city.

On topic A

SMArt citieS

the Smart Factor Davina Munro analyses what makes a future city smart, efficient and sustainable

ccording to a report by the International Electrotechnical Commission, urban spaces are said to grow by almost 150,000 every day, due to migration and births.

Between 2011 and 2050, the world’s population is expected to rise by 72% and the population share in urban areas to 67%.

This rise in population and the resulting need for a paradigm shift in urban development and design has led governments around the world to steadily move towards making cities smarter, increasing interconnectedness, simplifying commutes and integrating technology into almost every aspect of a citizen’s life.

We’ve already seen power players like Google revolutionise the automobile industry with their driverless cars; smartphones are becoming more intelligent every year; but what can we expect from the infrastructure of a future smart city?

MASter PlAnning

Addressing the master planning aspect of a smart city, James Kirkpatrick, global director of Masterplanning at AECOM, says that for a smart city, a deep understanding of physical networks such as utilities and transit is needed.

This knowledge then needs to be married to social behaviour, macro-economics and environmental issues to create a balanced smart response.

“Scale and density go hand in hand in being critical success factors for a smart city. Ultimately, city development is guided by the exchange between people, and compact, dense urban development is a fundamental element to achieve this in an efficient manner."

“Getting fundamental systems in place and working together will achieve a lot more than large investments in technology that may be on flawed systems. Also, cities that create robust planning and spatial frameworks that address wideSeptember 2015 Middle East Consultant 9

on topic SMART CITIES

ranging issues, from land planning through urban agriculture to urban resiliency, will be well placed to achieve smart outcomes.”

With this kind of detailing of infrastructure, equal investments and innovation from both the private and public sector will be needed.

Kirkpatrick says, “There needs to be a balance between the private and public sector. There is a general impression that the private sector leads the way in innovation for smart initiatives, but the rationale and demand for this innovation is driven by the public sector.”

“Dubai has made the smart city initiative a core principle of its development, and that message is resonating through the private sector. A project like the Dubai Smart Palm, a simple shade structure that provides Wi-Fi and mobile charging, as well as being an information centre, seems small in stature but represents a much bigger idea for Dubai as a city, and its global aims for being a smart city, by providing facilities accessible to everyone.”

Technology is also increasingly helping the master planning process. Kirkpatrick says, “Technical tools that are being developed allow us to better understand, map, model and create solutions for cities. Big sources of data are being developed, refined and specialised that will be phenomenal tools in the near future to guide city development. These tools will help to plan for housing needs, resolve traffic issues, plan for strategic investment and essentially make city

James Kirkpatrick, global director of Masterplanning at AECOM.

10 Middle East Consultant September 2015

development an increasingly certain process.” connectivity And trAnSPortAtion networkS

Another fundamental feature of a smart city is easy accessibility. Cities have always evolved around transportation networks, and in today’s increasingly globalised world, easy connectivity within city limits and externally is crucial.

Talitha Fabricius, associate director at Ramboll Middle East, is of the opinion that a significant realm of implementation and effectiveness of a smart city system is in transportation, comprising of energy-intensive systems that make cities work. Transportation systems and corridors are the lifelines of cities and largely define their effectiveness, character and economic progress.

“Efficient public transport systems with wide networks and multi-modal interchanges are key to the success of smart cities. These address the universally accepted objectives of reduced energy consumption, effective mass transit and efficient use of public space. Connectivity in terms of the various public transport modes and their interconnectivity are therefore crucial for efficient city functioning,” says Fabricius.

“Creating a street hierarchy and network and providing alternative routes for motorists can be effective, thereby making alternative forms of transit more convenient, cost-effective and attractive.

Also, paying as much attention to the bicycle and

Talitha Fabricus, associate director at Ramboll Middle East.

pedestrian network as to the roadway system is important.”

Fabricius goes on to suggest that designing block sizes small enough for people to have short, convenient travel paths to their destinations goes a long way. “Creating connections through blocks and public passageways through buildings for pedestrians and cyclists only should be considered.”

Other innovations expected to improve connectivity and transport systems in a smart city include Uber-type technology for driverless electric vehicles, says Fabricius, and greater use and provision of space-saving automated car parking systems at key transit nodes will work well too.

Kirkpatrick agrees that driverless cars will not only revolutionise the automobile space but also play a role in defining a smart city’s road infrastructure. “One concept that is emerging that I think will change city development in the near future is the advent of driverless cars. These are being tested on streets already, and being used at remote work-sites such as mines.”

“Their impact on cities is already on the agenda of city planners, to see how and what impact there will be on city form. I think there will be a gradual adoption of this technology that could lead to changes in city design, perhaps we will see less parking, as driverless cars can circulate to other locations. This would lead to a different streetscape, and building form and typologies could change to reflect changing needs for car ownership.”

on topic SMART CITIES

Abeer Manneh, urban designer at Woods Bagot.

SuStAinAble deSign

Sustainability in design is imperative for a city to truly earn the ‘smart’ tag. Materials used in construction and infrastructure especially need to be even more environment friendly and keep the carbon footprint as low as possible.

Abeer Manneh, urban designer at Woods Bagot says that sustainable design consideration is a core element in achieving a liveable sustainable built environment. “At one end, the urban design approach shall influence reductions in CO2 emissions in transportation infrastructure through means of transit-oriented design (TOD), designing a pedestrian-friendly, safe and walkable environment.”

“To give an example, in a smart city you would expect the citizen to have information on where is the nearest bus stop, and when is the next bus expected to arrive via mobile application.

However, to encourage the citizen to use the bus, the pedestrian path should be safe, the stop should be within a walkable distance, and the outdoor conditions should be relatively comfortable, e.g. provision of shaded walkways. This would result in less CO2 emissions by using public transport rather than single-occupancy vehicles, reduce fuel consumption, have more lively districts and promote healthier living.”

In terms of material selection, Manneh says the choice should be towards sustainable materials that are re-usable, recyclable or produced with recycled content. “There are also innovative sustainable products and materials that could contribute positively to the environment, such as bio-concrete that has capabilities to purify polluted air, selfhealing concrete that uses bacteria to heal cracks when the building is ageing, bio-bricks that have very low embodied carbon and could be produced

“Cities that create robust planning and spatial frameworks that address wide-ranging issues from land planning, through urban agriculture to urban resiliency, will be well placed to achieve smart outcomes”

on-site. It is imperative to note that the options we have these days are great, and due diligence is required to select the most suitable and sustainable materials within a project’s context.”

“On a building level, green technologies such as water and energy metering and monitoring systems, efficient irrigation systems such as subsurface irrigation, localised treatment for organic waste, localised wastewater treatment – such as reed-beds that could be integrated into the landscape strategy and the use of greywater within the building – and irrigation are a few examples of how individual buildings can contribute to a more sustainable neighbourhood.”

Another thing that buildings could also integrate are electric charging stations for e-bikes and electric cars that could also connect to the neighbourhood network, says Manneh. Other technologies like integrated renewable systems will also play a positive role in shifting buildings to become regenerative developments – positive energy buildings. technology

Of course, no smart city is complete without the integration of technology into every aspect of the built environment. Nicolai Solling, director of Technology Services at Help AG, is of the opinion that Google’s definition of a smart city highlights just how important the role of technology is in a smart city.

September 2015 Middle East Consultant 11

on topic SMART CITIES

For a smart city to truly reach its potential, active participation is required from the government, construction industry and IT industry to find an integrated solution.

Nicolai Solling, director of Technology Services at Help AG.

“The integration of technology with traditional building design must take place from the onset of the project. New urban renewal projects have to focus around integrating information and communication technologies [ICT] into the physical building itself, so that when completed, the structure has a ready platform for the deployment of technologies essential to connectivity, efficiency and productivity.

Technology is already being leveraged to streamline construction itself with applications in communication, design, supply chain and logistics, project planning and management, and others.”

For any smart city to function well, active participation and communication is required from participants in the government, construction industry and IT industry. Solling explains, “To build or transform into a smart city, a consortium of regulatory bodies, construction companies and real estate developers, IT organisations and telecom providers needs to be formed.

This is because strategy is an area that needs to be addressed so that all the stakeholders are to be on the same page. Guided by government frameworks, these industry majors must correctly align their long-term goals.”

Solling also breaks down the investment we are likely to see for the advancement of technology in smart cities. “IDC, a leading IT research firm, has predicted that ICT spending in the Middle East 12 Middle East Consultant September 2015

and Africa [MEA] region will top $270 billion by the end of this year, and a lot of this investment will be in technology areas that are seen as being essential to smart cities. Dubai Municipality alone has allocated AED 3 billion to sustainability and smart city projects for 2015, so clearly there is a lot of investment in this domain.” chAllengeS

As with anything new, there will be plenty of challenges, Kirkpatrick notes. “One issue with smart city development is that you often see attempts to try it from scratch on vacant sites, as opposed to integration or enhancement of existing

“Efficient public transport systems with wide networks and multi-modal interchanges are key to the success of smart cities”

urban fabric. This is an immediate challenge to achieving smart outcomes, because although you have a blank canvas to work with, city building is a multigenerational task. The scale of the endeavour of creating smart cities from scratch often leads to abandoned dreams.”

From an IT perspective, Solling notes that while making services available to citizens via web and mobile channels is a core concept for business in a smart city, this gives hackers an incredibly large number of targets. “Attacks such as distributed denial of service [DDoS], or worse still a cyber-attack on the IT systems of essential utilities such as electricity and water, could cripple the smart city.” concluSion

All in all, the next-generation citizen has a lot to look forward to in terms of easier living, commute options and e-services. Moreover, in terms of future proofing smart cities to prevent them from becoming obsolete, Kirkpatrick notes that cities are remarkably resilient.

“Old cities like Rome, Paris and London with their narrow carriageways have adapted to an automobile-dependent culture and have been able to integrate fibre optics and other new infrastructure networks into their physical infrastructure. I think the lesson is that there is enormous capacity for change in cities, as long as the basic structure is not too complicated.”

IN PRACTICE Tarek Shuaib

interview

SETTINg ThE PACE ME Consultant catches up with Tarek Shuaib of Pace and finds out how the company has moved from strength to strength over the last five decades, navigating the unrest in the region Rom ITS INCEPTIoN bACk IN 1968 by Hamid Abdulsalam Shuaib and Partners, Pace was quick to establish itself as a lead contributor to the development of urban planning and architecture in Kuwait. But right from the early days, while the focus was on designing iconic structures, the company also worked relentlessly on creating a deep talent pool in the region. This has been achieved not only by attracting great quality staff from across the world, but also by fostering a creative mindset among graduates and establishing itself as an educational institution for budding architects and engineers.

With their golden jubliee just three years away, ME Consultant caught up with managing partner Tarek Shuaib, son of founder Hamid Shuaib at Pace, to find out how the company has managed to achieve its milestones and shape the face of Kuwait, especially in the invasion period.

“In 2018, we're going to be 50 years old, and it seems that Pace’s vision is going to come full circle,” says Shuaib. “In the last few years, we've seen a bigger architecture boom in Kuwait and we've been able to work with young engineers and architects who are coming out of the education system, so we are impacting these youngsters as we did 50 years ago.”

“We strongly believe that what we do is not just for our bottom line, but also impacts the country as a whole. We are positive about the future. After the invasion in Kuwait, the markets had dipped for quite a while, but now we are in the process of revitalising Kuwait’s architecture and these are exciting times for the construction industry.”

14 Middle east Consultant September 2015

One of the banes of the construction consultancy space in the Middle East has been talent acquisition, and Shuaib explains just how important having the right person for a job is, not only from a corporate perspective but also for the country.

“Young architects and engineers would have two choices – either they enter the private sector in this region or the government sector. For me the government sector is far too big, and there may be more learning opportunities in the private sector for some of these young graduates.

“It is important for Pace to have access to these young professionals in order to be part of their growth and to be able expose them to large-scale projects – especially those that tackle key industries that affect the future growth of Kuwait, which we work on in a very systematic and professional way."

“Some of our employees go on to become our clients or they become sub-consultants for some other jobs. We feel we recruit and harness talent, and have also managed to associate ourselves with a number of international firms by having them invited to deliver speeches and presentations to the future architectural talent of the country.”

In terms of their apporach to design and architecture over the years, Shuaib says it's as simple as providing clients with the buildings that they need, and this can be done by ensuring that each structure is functionally and aesthetically inspiring for the people who use them. So far, they’ve relied on their strengths, namely providing quality and using their creative team to deliver projects in an efficient and professional manner.

He says, “It’s crucial for us to work with our clients from

September 2015 Middle east Consultant 15

IN PRACTICE Tarek Shuaib

inception right up until delivery to make sure we cater to their every need. There is a large investment from their side, and we want to ensure they get the best return on investment.”

“Since we've been covering north of the Gulf so far, the logical next step is to start looking further south next year”

Nurturing young talent not only improves the bottom line of a company but also impacts the country on a larger level.

The challenges of course have been many, and one of the most prominent for Pace has been dealing with contractors in the region. Shuaib highlights that it is important to keep in mind that contractors too have a set of challenges that have a domino effect on their clients, the biggest being excessive bureaucracy and the cost and difficulty of sourcing the right materials. He explains his strategy.

“To overcome some of the challenges we face with contractors, we set strategic incentives, which improves delivery and quality during construction and this is what we did for the award-winning Avenues Mall’s phase one, two and three. I think we need to move a step forward now in Kuwait and encourage the local contractors to improve their services.

In order for that to happen, I believe we have to open up the market to international contractors and encourage them to come here so that our own standards improve."

16 Middle east Consultant September 2015

“One step towards that could perhaps be taking steps towards improving the tendering laws and making the conditions of the contract for international contractors more appealing, which some governmental bodies are already doing.”

Speaking about the impact of recent events in Iraq and Kuwait on construction, Shuaib says that there have been a lot of challenges on that front, but the sector has received a lot of regional and international support.

“With the fluctuation in oil prices and the current security concerns, both locally and across the region, everyone's peace of mind has been affected, leading to economic instability.

However, we have witnessed a lot of support from regional and international partners, and this has strengthened the resolve of the Kuwaiti government to continue operating as usual."

“I'm sure there will be some repercussions due to the political instability, but Kuwait's development plan has been set in May and I believe that there is going to be a continuous push forward to meet those targets that have been laid out for the next five years. It will not be easy, but I am sure we can overcome it.”

Considering the recent events that have shaken the political and corporate structure in Kuwait, forging partnerships with international consultants does seem like the logical way forward to heal the local industry, but Shuaib says that the focus for local players should be to first step up their game and improve their offerings before approaching an external partner.

“We feel that in Kuwait you do need a lot more improvement in the performances of some consultants. In

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IN PRACTICE Tarek Shuaib

Every participant in the construction space should focus on growing the industry as much as they focus on self-growth.

Iran's deal with the West will be positive for the industry and will lead to greater political stability and new opportunities.

certain specialty projects, international consultants are being utilised as there is a lack of experience in those specialties within the region. Some clients do want specialists and named architects to work with, but we find that in order for these architects to be successful, they have to have a strong local partner like ourselves."

“We also have a great architecture and engineering team here, so we do a lot of projects independently. However, I do think that it is crucial for both worlds to be exposed to each other, as it is a learning process for all.”

Pace’s first-quarter performance this year reflects its sentiment regarding an individual firm’s responsibility for self-growth and industry growth. Shuaib says Pace has been fortunate to work on some great projects over the last few years, some of which will be delivered shortly and some which are still in design.

“In terms of architectural and engineering services, we have

18 Middle east Consultant September 2015

been concentrating on healthcare, transportation, education and retail. Additionally, we have really been pushing forward to strengthen our talented team, supported by additional resources of industry experts, which will enhance our performance on high-profile projects."

“We are pleased with our accomplishments and success to date, and we are confident that we will continue building upon our achievements. I am a firm believer that an individual or company should always strive to keep learning and developing themselves. In the corporate world, there is a lot to learn from international best practices, and at Pace we endeavour to set new industry benchmarks.”

Speaking about Pace’s expansion plans, Shuaib says, “At present, we have offices in Riyadh and Bahrain. Currently, our Riyadh office is handling an extensive number of projects within different industries, such as the Noura Center and the Riyadh Metro.”

“We may also consider entering new markets, but that will not take place until early next year. Since we have been covering the north of the Gulf so far, the logical next step for us is to start looking further south next year."

“We are also well placed internationally, as we work closely with the Islamic Development Bank, Kuwait Fund for Arab Economic Development and the Arab Fund.

These bodies open up great opportunities for us to offer consultancy services when these funds are investing in projects abroad.”

Asked about his concerns regarding the deal with Iran and the West and its impact on the construction industry in Kuwait and the GCC going forward, Shubai is quite positive.

“I think it will lead to greater political stability in the region and open up a huge market with numerous opportunities for us. Iran has a great pool of resources, including talented engineers, which will now be easier for us to access, and there may also be a reduction in the cost of materials and certain commodities. Time will tell, but I am optimistic.”

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IN PRACTICE PROJECT MANAGEMENT

Analysis

ADDING VALUE Davina Munro asks the experts why project management is undervalued in the Middle East and unlocks the benefits it adds to a project September 2015 Middle East Consultant 21

IN PRACTICE PROJECT MANAGEMENT

I

n today’s chaotic global economy, every company is looking to stay ahead of the curve, and the competition to outdo each other is fierce.

IN ThE MIDDLE EAST, IN TERMS of MoNETARy

value output, the construction industry records the second largest production activity for the economy after oil. In Saudi Arabia alone, over 1,500 projects worth $1.5 trillion have been planned or are in construction, and over 100 mega-projects are in the pre-contract phase, valued at $600 billion.

But despite the massive opportunity, many projects still lose a substantial amount of money due to delays caused by the lack of proper management right from the initial stage. The value of project management as a discipline is not thoroughly understood the way it is in Western countries, and thus is overlooked and seen as an unnecessary expense.

“According to a 2014 PwC survey, where 130 projects were surveyed in the GCC, it was found that 90% of the projects were delayed, 44% by more than six months, 71% of projects were over budget, and more than 60% of them were more than their initial budget,” says David Clifton, regional development director at Faithful + Gould.

“I think the statistics themselves are quite damaging to the industry as a whole, especially if you don’t have 95% of the projects delivered on time. Now why would you look at project management as a functionality? Well, the two or three core functions of project management are to manage time, cost and quality. The time and cost bit is clearly not being handled effectively.”

“We've also got issues in understanding the value in our markets here. We typically have not been necessarily selective on the value add, which ends up with the cheapest labour.

This affects the markets and diminishes the emphasis towards innovation, and the ability to bring something new to the party is also typically stifled by having a procurement system that is often only focused on the price.”

This lack of understanding is found not only among small and medium developers but among a few of the large players as well and builds many misconceptions along the way, says construction veteran Akram Ogaily, senior vice president of Hill International's TCT Group.

22 Middle East Consultant September 2015

“Misconception, especially on the part of the developer, is why project management is undervalued in the Middle East.

Firstly, they think that they're saving money. They perhaps don’t understand what project management really is. Though the market here has been using project managers for the last 10 years, there are still companies who are unaware about the value that project managers can add, and this is one of the issues we are facing,” says Ogaily.

“The main issue is the culture and the market. People sometimes forget that the construction market in the West developed for hundreds of years. When you go to the United States, you'll realise that they have, over a long period of time, built a system where everyone from the client to the design to contractor to labourer have knowledge of the value of project management.”

“In the Middle East, we jumped from riding camels to using electronic devices and communication and then building iconic buildings – that happened in a short span of time. The rush from traditional buildings, materials and cities to a Westernised way of things was very quick, and this is why it’s not fully understood.”

Intangibility is perhaps another roadblock that causes confusion and misconception, says Andrew Turner, senior project manager at Hepher Project Management. “I think it’s because project management has not been recognised as a separate discipline here like an architect or an engineer or quantity surveyor, and that may be because you don’t actually produce anything.”

“There's an output to the others, such as designs, etc.

Traditionally, because there's no tangible output, local clients and sometimes even sophisticated clients tend to think that they should pay for something they see, as opposed to a service that is needed to make those people produce things. They can’t get their head around what we actually produce, so it’s very hard for them to say what the right price is and what the wrong price is.“

IN PRACTICE PROJECT MANAGEMENT

Aijaz Ahmed, managing director at De Leeuw Middle East, agrees that tangibility plays a role. “I think people misunderstand the value of project managers because they don’t see it. They're not mature enough as a company to see it. The way lawyers handle your legal problems and a chartered accountant would handle your finances, project managers will handle your projects.”

So what is the value add of project management, and when does it become particularly hard to ignore?

Clifton says, “The value of effective project management is to be able to establish the essential processes, the essential procedures and the best way of doing this work, to bring more surety around the cost, the time and quality, as well as delivering what the client sets out to achieve, whether he be an internal resource or an external resource.”

“Also, being able to effectively communicate the risk of the project being not delivered or failing in some manner, and being able to ensure that the asset is effectively handed to the client in a state that is managed to the expectation. The client's interest should be represented effectively.

“The value also comes from the earlier engagement within the development of the scheme. The earlier there is involvement, the more effective project management is to that project or programme, because you can make much greater impacts on the costs and in the time of development. You can also help the client better with restorations.”

Ahmed says that project management is particularly hard to ignore on projects that are time bound. “If you have a fasttrack project, you really can’t afford to do that without a project manager on board. Secondly, complex projects such as mixeduse projects can’t be done without project managers.”

“Another vital value that project managers add is identifying risk and how to mitigate the risk. We quite often look at the long-need items of procurement which could risk

completion of the project, which clients may miss out on if they don't have a project manager on the job."

“In the construction of hotels and hospitals, I have in fact witnessed one construction of a hospital where construction of the building was started and there was no equipment supply for the hospital, because they hadn't decided on it yet. These are the type of things the client will lose money on.”

To effectively see the value that project management brings, choosing the right person for the job is key. Clients should opt for third-party project management firms over multi-disciplinary firms or contractors who provide project management as an additional service.

“The two or three core functions of project management are to manage time, cost and quality. The time and cost bit is clearly not being handled effectively” “It is the wisest thing for a client to appoint a third-party project manager who is independent of any contractor and consultant, if they want the real value of project managers. The reason why project managers are appointed in the first place is because you want to ensure that a project is delivered on time and with the highest standard of quality."

“Now, if you have a project manager from an architect's side, he's going to cover up all the shortcomings of the architects and designers and likewise, if you take a project manager from

(left to right) David Clifton, regional development director at Faithful+Gould.

Andrew Turner, senior project manager at Hepher Project Management.

Akram Ogaily, senior vice president at Hill International's TCT Group.

September 2015 Middle East Consultant 23

IN PRACTICE PROJECT MANAGEMENT

Benefits of project management: 1) Risk management 2) Time management 3) Cost management

a contractor's side, he's going to do the same. What you want is an independent project management company standing there and telling you what is right and wrong and what should be paid for and what not to pay for. You cannot get this if you appoint an architect cum project manager or a contractor cum project manager.”

Ogaily nods in agreement and advises, “The value add by project managers is not always value if the client does not choose the right project manager. In the market, because of how it was 10 years ago, design consultants add management service to their scope, quantity surveyors add project management to their scope as well, so suddenly everyone is a project manager.”

“Most contractors also have project management and construction management arms. So you have to detach your positions where conflict of interest might occur to purely consultancy services, to ensure that you get the value add on project management.”

“The rush from traditional buildings, materials and cities to a Westernised way of things was very quick, and this is why it’s not fully understood” The biggest challenge remains misconception, but regions like the UAE are very receptive of this discipline, and understanding in other areas of the GCC is picking up pace as well. Clifton says, “I think on the very large schemes where there's like a programme of operation, Saudi has bought into the fact that it's required. Qatar understands that too. But the leader by far is the UAE, in understanding the value and where it's best applied.”

“The clients are a lot more experienced and are a lot more 24 Middle East Consultant September 2015

internationally conscious of where good things have been done, and where good things can be learnt and made better. Even on the governmental level, they understand the need for project management offices, they understand the need for programme management on these large, complex schemes. They understand the value added if the project management is done effectively.”

Turner says, “Most of the UAE, Saudi Arabia, Iraq and Algeria in my personal experience is receptive. Abu Dhabi seems like the least accepting. If you go to places like Algeria and Iraq where it's very unsophisticated, people are usually keen and eager to learn. So if they're told that a project manager is coming in, they're excited and they're keen to learn.”

Educating the client through workshops and seminars is the only way that project management will get recognised and valued going forward. Many project management firms are initiating such activities themselves, to educate clients in the region and expand their services as well.

Ogaily recalls, “In Iraq, when we first spoke about project management in 2010, we first had to ensure that the people understood what it is. We had lecturing in workshops, seminars at different universities, etc for eight months for education and awareness. In my assessment, that was definitely needed as a first step. We had the knowledge, but we needed to deal with people who didn't know what project management was, so we needed to educate them about it.”

“I initially started with a small portion of project management.

One of the things was the evaluation of contractors’ bids for one week. At first it was for one project, then two projects, and then it grew, and then we did a big project. The first client we had in Iraq was the Ministry of Youth and Sport, where we built a stadium.”

All in all, with the market in the GCC maturing and project management firms making more efforts to spread awareness, the discipline will become more accepted and appreciated. And with large events like Expo 2020 and the 2022 World Cup in Qatar around the corner, the future of project management in the region will turn even more promising.

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IN PRACTICE lighting

LIghT YE A

26 Middle East Consultant September 2015

IN PRACTICE lighting

insight

The non-visual spectrum of light has the potential to manipulate performance in human beings. davina Munro finds out how lighting designers and specialists are applying it to alter human performance

RS AhEAd

The advent of LEDs has introduced greater flexibility with regard to colour temperatures and dimming.

September 2015 Middle East Consultant 27

IN PRACTICE lighting

O

ver the course of evolution, humans have developed a circadian system which anticipates changes in the world around us and coordinates the 24-hour cycle in all our bodily functions.

IN 2002, SCIENTISTS dISCovEREd gANgLIoN

The key to finding the right lighting solution is understanding human interaction in an environment and then applying technology to improve it.

cells in the retina of our eyes that are not used for seeing but instead respond to the blue content in daylight. This in turn sets our body’s master clock and synchronises our internal system with the external cycle of day and night.

This effectively means that certain kinds of light can alter our body functioning by either increasing our alertness and performance or making us feel relaxed and drowsy, and it is this ability to control the way people perform that the lighting industry is tapping into.

Shedding some light on the matter, lighting solutions specialist Kevin Thompson, product and marketing director for Middle East, India and Africa at Zumtobel Lighting GmbH, says the purpose of biologically effective artificial lighting is to enhance the impact of daylight indoors.

“The Zumtobel group is investing a lot of time and effort to help customers understand the benefits of this in fields such as healthcare, office, education and retail. What we’re doing is looking at the best solutions to bring daylight indoors."

“From our perspective, understanding the customer’s application is a key part of creating the correct solution, and lighting for non-visual effects is no different. The starting point is understanding how people interact with the space or

28 Middle East Consultant September 2015

environment in which we are trying to find the best solution, and how this technology allows us to improve the activity carried out in that space.

“The non-visual effects of lighting is a fast-growing field, so in order to manage this activity, we work closely with different customer groups and with independent research labs and education authorities. We then use the expertise in our R&D teams to create the best possible solution. It is key that as a lighting industry, we get as much scientific evidence of the potential benefits as possible, in order to help our customers make an informed decision on whether the technology is suitable or not.”

The intensity, spectrum, timing and exposure pattern of light is key to the impact of artificial lighting on biological efficiency.

Jerferson Baltrami, senior lighting design architect at Studio Lite Middle East, explains, “All these factors are influential. The intensity of light is the most important, and research shows that the secretion of melatonin [a hormone that regulates sleep and wake cycles] can be suppressed in a healthy human being in spaces with an illuminance of 1600 to 3200 lux, and is not affected if the illuminance level is under 200 lux.”

Paul Miles, principal lighting designer and partner at LightTouch PLD, agrees, saying, “Historically, we have

IN PRACTICE lighting

focused on enhanced light levels leading to high amounts of energy usage to illuminate internal spaces. This met the minimal lux level criteria set by international standards and lighting guides relating only to the visual spectrum, where we believed it would provide increased efficiency. This potential has a negative impact on our circadian rhythm.”

“With this new research, it has been quite apparent that the requirement is not purely down to light intensity on a dedicated surface, but the clever use of light as well, like illuminating numerous surfaces rather than a single plane. Lighting control systems play an important role and are fundamental in lighting design. No longer should this technology be deemed as a luxury, but more of a necessity to enhance the value and impact of interior lighting.”

The non-visual effect of light has a number of applications and installations in sectors such as commercial, hospitality, retail, medical institutions and public spaces. Baltrami notes, “Lighting design has to be proposed in a way that is focused on the activities to be performed in the different scenarios and the behaviour expected by the users. If the activity to be performed requires attention and energy, then a high illuminance level in a neutral or cool white colour has to be proposed. If the intention is to keep the user relaxed, then a low illuminance level in warm or neutral white colour temperature is needed.”

In an office, for example, Miles explains that lighting plays an even more important role, since employees are in a static position for long periods of the day with minimal daylight ingress and thus tend to get tired and less productive. “By animating the lighting in a space through the use of changes in light intensity and colour temperature that reflect daylight conditions, we can help stimulate the brain to make a person more productive.”

“In fact, studies have shown that a better-lit environment also helps reduce the number of sick days taken by employees.

For multinational organisations where the number of staff is

in the thousands, an investment in the right lighting design can considerably increase productivity, resulting in efficiency, which of course leads to high commercial value.”

Similar applications can be made at retail stores and malls as well, explains Miles. “The non-visual spectrum can be manipulated in a different way in retail. The key aspect of retail is to increase sales, and this is generally through impulse buying. By increasing the intensity of light at a specific point of sale, we as humans will be subconsciously drawn to the display and this will increase the chance of making an impulse buy.”

Animating the lighting in a space through changes in intensity and colour temperature can stimulate the brain and increase productivity.

“From our perspective, understanding the customer application is a key part of creating the correct solution, and lighting for non-visual effects is no different” “Another key aspect to retail is way guidance. You want your customers during their visit to a shop or mall to be carried past as many products as possible to increase the possibility again of an impulse buy. The clever use of light intensity can guide the shopper through a particular route to maximise this potential.”

In bars and restaurants, lighting depends on the route to market of the retailer, be it a commodity sales target in a fast food chain or providing a signature experience in a restaurant.

Miles explains, “In an environment that is well-lit, there is a potential that people would naturally walk faster and not spend long periods of time within. Therefore, for fast food restaurants September 2015 Middle East Consultant 29

IN PRACTICE lighting

(from left to right) Kevin Thompson, product & marketing director, MEA & India at Zumtobel Paul Miles, principal lighting designer & partner at LightTouch Faraz Izhar, senior lighting desinger at KEO Jeferson Baltrami, senior lighitng design architect at Studio Lite

where high levels of footfall are key to increase the number of sales, this is certainly the approach to go.”

In hospitals, the effects of the non-visual spectrum have been studied in depth by medical experts, who have found that daylight is key to the recovery of a patient and is even more important in ICU units where people are coming around after intense surgery.

Though using the non-visual spectrum definitely has its economic and commercial benefits, the challenge may be that it is not entirely understood. Faraz Izhar, senior lighting designer at KEO’s Design Division, says he definitely considers it a good value add for specific and particular lighting applications, if not all.

“By increasing the intensity of light at a specific point of sale, we as humans will be subconsciously drawn to the display and this will increase the chance of making an impulse buy” “The extent of application is quite relative. As a designer, you may be thinking about it at some level for each and every project. In fact, the projects for which I’ve thought about applying the non-visual effects of lighting solutions, right from the concept, are our educational projects, and particularly some schools that we have recently finished."

“Subconsciously, most lighting designers in the Middle East may already be applying it to their projects in principle. For example, if a designer is doing something as simple as using daylight white colour temperature luminaires within an office, 30 Middle East Consultant September 2015

he or she is already applying it to an extent."

“Applications are catching up fast in the European and North American sectors, where there is even a Human Centric Lighting Society. In the Middle East, though, I would say that while lighting designers are already aware, people – particularly the end clients – in general here are still in the process of understanding it. Having said that, I think the region will soon catch up, within the next three or four years.”

In terms of the cost, Thompson says, “It’s difficult to give an exact answer, but if you’re comparing conventional technology versus the implementation of LED technology and advance controls and daylight management, then we can easily achieve cost saving on energy of up to 60-70%.”

Izhar says it depends on the extent to which you want to apply it, and how tight your purse strings are. “If the budget permits and if the client asks for it, the designer can go up a few notches and think on a much larger level. This could mean the optimum integration of artificial lighting and daylight, or the use of cooler light colour temperature during the day and warmer light colour temperature during the evenings.”

“It could also be the usage of tuneable white light fixtures, or appropriate lighting controls for individual rooms. Minimum things considered, it could cost you maybe at least 25% over and above your regular lighting design costs.”

The effects of the non-visual spectrum, and the level to which it dictates our performance at the work place, restaurant or at home, are undeniable. As for the frequency of its conscious application, Thompson adds, “I think the Middle East is slightly behind on implementation, as it was for LED, but as more studies are carried out and people talk about the benefits, I don’t see why it won’t improve. One point to consider is that this part of the world doesn’t have such a clearly defined seasonal change where daylight becomes a problem in winter months. However, there are still many environments where natural light is a problem.”

Izhar agrees with the fact that the Middle East is yet to understand its full potential. He says, “The requests are very selective for this kind of solution in the region and mainly come from the healthcare and education sector.”

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on site NORA

Specify ME nora's commitment to the environment is seen in their flooring products, which are PVC-, plasticiser- and halogen-free.

What are the various nora flooring systems products? Tell us about the benefits.

nora flooring is made of high-quality industrial and natural rubber, raw mineral materials extracted from natural deposits and environmentally compatible colour pigments supplement this rubber. More than 60% of the raw materials are sourced locally.

The nora portfolio currently encompasses more than 300 colours and styles of commercial rubber flooring, stair treads and accessories. This includes adhesives, cold weld, cove sticks, heat welding rods, sanitary base and wall base. The norament and noraplan rubber flooring product lines offer a broad variety of design options and specialty flooring applications, including access, static dissipative, acoustic and flame-resistant floor coverings, as well as flooring that provides superior wear resistance.

Take us through the latest product development. How does this add to your competitive advantage?

nora systems have recently launched a newgeneration flooring system called nTx. nora nTx is a revolutionary self-adhesive flooring system that reduces installation time and dramatically lowers the total cost of each flooring project.

The flooring can be cleanly and safely installed in a few simple steps and can be used immediately post-installation. There is no drying or waiting time required, and it works perfectly with high residual moisture levels and minimises the downtime of a facility.

A step ahead Steven McFadden of nora speaks to ME Consultant about revolutionary eco-friendly f looring systems

32 Middle East Consultant September 2015

Tell us about the sustainability factor involved in the design and production of this product.

nora’s commitment to environmental protection is rooted in a desire to preserve the natural environment for future generations. The company constantly evaluates its processes and practices to improve efficiency, conserve energy and reduce its carbon footprint. nora floor coverings do not contain any PVC, plasticisers (phthalate) or halogens (e.g., chlorine). The absence of PVC guarantees that nora floors will not generate any hydrochloric

on site NORA

www.nora.com

acid, dioxins or furans. The sustainable rubber floors are extremely tough and have a life expectancy far above the average of other resilient floor coverings. A long life expectancy also means conservation of resources for both nora products and the accessories required to install them. The dense, no-wax surface also ensures the infrequent need to renew, replace or dispose of nora floors. nora places great emphasis on environmentally compatible and conservational manufacturing methods. nora flooring is manufactured in stateof-the-art production plants. The production process uses only the absolute necessary amount of energy, obtained with high efficiency through the combined heat and power principle. The company re-circulates the cooling water required for the production process to reduce the volume of fresh water consumed.

Production scraps are also recycled into useful materials within the plant and returned to the production process. The production process ensures that no harmful emissions are given off to employees or the environment and is subject to regular emissions checks using special analytical procedures.

Based on the floor’s indoor environmental qualities (low-emitting materials), materials and resources, environmentally conscious architects, designers and facility managers can achieve diverse LEED points by using nora rubber flooring.

Which market segments are you targeting with this product?

For the last 65 years, nora flooring has targeted different markets, including healthcare, education, industry and life sciences, public buildings and rail transit. a. Healthcare: Flooring solutions from nora help healthcare facilities maintain a safe, hygienic and quiet environment for their patients to rest and recover. From entrance halls, lobbies and corridors to surgical suites, patient care rooms and nurses' stations in hospitals, clinics and assisted living facilities, no-wax nora flooring provides significant cost savings with its ease of maintenance.

Additionally, nora flooring helps protect against

nora's new revolutionary self-adhesive flooring system reduces installation time and lowers the cost of a flooring project.

“The nora portfolio currently encompasses more than 300 colours and styles of commercial rubber flooring, stair treads and accessories” bacteria and micro-organisms that can cause infection or further illness. nora also provides an added level of underfoot comfort that reduces fatigue among nurses, doctors and staff, helping them remain productive throughout their long shifts. b. Education: nora flooring addresses the needs found throughout all levels of educational facilities, including preschool or nursery schools,

public and private elementary, middle and high schools, as well as colleges and universities. nora products bring benefits to students and teachers by absorbing unwanted sound, contributing to the sound clarity essential in a learning environment.

Efficient maintenance requirements can help custodial staff schedule and execute cleaning. The durable surface stands up to heavy student foot traffic and offers safety and slip resistance, even for areas affected by tracked-in elements. nora’s stainand impact-resistant surface provides specialty areas in education facilities like gymnasiums, weight rooms, cafeterias and labs, with the performance benefits they require. c. Industry and life science labs: The unique properties of nora flooring provide a premium surface that stands up against staining agents, including skin disinfectants and other common chemicals heavily used in life science research labs and production areas.

Additionally, nora flooring offers superior wear-resistance to handle the constant operation of forklift trucks, and static dissipative grounded flooring for use in cleanrooms and research labs working on sensitive electronics. nora provides a durable, cost-effective and low-maintenance solution for industrial operations.

What is the maintenance regime for nora flooring, and what kind of durability can we expect?

nora rubber flooring requires no finishing, waxing or sealing. All nora floor coverings have a dense, nonporous and dirt-repellant surface that eliminates the need to use harsh cleaning chemicals and ultimately saves on time spent on labour and costs associated with cleaning products.

Innovative cleaning practices like the nora pad system combine water, an auto scrubber and exclusive nora scrubbing pads, which incorporate industrial diamonds to provide a choice of three different abrasion levels. With regular use, the system increases the floor’s resistance to scuffing and staining while removing surface damage. nora floor coverings have lifecycles typically lasting for 30 years, which reduces the need for frequent removal and disposal.

September 2015 Middle East Consultant 33

On Site William Bennett

Opinion

William Bennett has a Master's in Landscape Architecture and works for desert INK, an innovative landscape architecture studio based in Dubai.

Successful landscape design & build contracting an architect's ability to walk through a site and immediately understand its assets is crucial to a design & build project One of the most useful attributes of landscape architects is the ability to assess a project site holistically, ensuring that maximum value is derived from the opportunities presented.

Each set of conditions presents its own challenges, and the best designers are adept at turning those potential stumbling blocks into valuable opportunities.

Here's how desert INK was able to turn a set of challenging project constraints into a constructed landscape which has heads turning.

Clear viSion

The main aim for the sales centre project in question was to create a development entry experience in line with the client’s vision: that green design is the future.

The colour green and ‘green’ in a sustainable sense are not always good bedfellows in this region, so our primary challenge was to create a green impact without exceeding the irrigation or financial budgets. The other critical constraint was time. The client required fast-track delivery in order to launch the project to coincide with a marketing campaign.

DeSign & builD

The client initially approached desert INK with a traditional design & tender process in mind. Upon reviewing the programme, it was agreed that a design & build approach would be 34 Middle East Consultant September 2015

better suited to the project, allowing certain site processes to be undertaken while the detailed landscape design package was being finalised.

After an intensive two-week concept design phase, the landscape concept was handed to desert INK’s sister contracting company, Desert Landscape, appointed to construct the design.

This overlapping programme enabled Desert Landscape to immediately commence work on the irrigation mainline, bulk earthworks, procurement and other such tasks.

While work was progressing at the site, desert INK and Desert Landscape worked together in creating detailed shop drawings which fit both the design vision and the lump-sum budget. At this point, the client now had a fixed timeframe, an agreed design direction, progress at site and a fixed cost. All of this was achieved within one month of initiating the project, a feat which would be unachievable outside of the design & build model. unDerStanDing the Site

Understanding the site’s resources, rather than seeking to create a blank canvas, is the first step towards innovation and sustainability. A thorough technical survey is essential, but just as critical is the landscape architect’s ability to walk through the site, understand the views, assets and features, and start to formulate ideas there and then.

The site in question was a partially-constructed golf course project and hence had a good deal of pre-existing vegetation and landform, which is a great asset. The site was rather linear and somewhat elevated, with distant views over adjoining land in some areas. This made site visits quite spectacular, but made it much harder to create the illusion of a green oasis.

On Site William Bennett

Reducing the dependence on imported resources and materials adds to a landscape project's sustainability factor.

In order to achieve this, we re-routed the entrance approach so that it carved through the low points in the terrain, using existing higher ground and mature vegetation to screen views of the surrounding desert. With the existing landform and vegetation now screening the distant views, site spoil was used to enclose near-views within a narrow corridor of landscape which would then be planted.

Costs were reduced since the visible areas of landscape were minimised, which equated to huge savings in plants, irrigation, maintenance and manpower. reDuCing CoStS

A key part of designing and building sustainably is reducing a project’s dependence on imported resources and material. Being well aware of the expected ‘wow’ factor, the challenge with this project was to achieve a jaw-dropping impact

in an expansive desert, without over-spending.

Building large concrete walls or complex gateway structures seemed illogical, since it would not only drain the budget but also defy the green initiatives that we aimed to promote. Thinking laterally, the design team decided that tall gabion walls would be a more practical method of achieving an impressive entry feature.

Site-excavated waste stone material was repurposed to fill gabions and used to retain impressive earth mounding. This solution allowed extremely quick construction and was low-tech, low impact and low-cost. These entry walls acted as the defining entry feature, delivering the ‘wow’ factor required by the brief. a Collaborative approaCh

Perhaps the most exciting part of design & build is its ever-changing nature. As a designer, this

is where your ability to think quickly and solve site issues is tested to the limit; you need to think on your feet. Successful design & build projects rely on close collaboration between the designer and contractor, pooling resources, practical experience and design flair. This is a collaboration where the client is the ultimate beneficiary.

While time-saving is a key benefit of the design & build approach, our experience tells us that the hands-on collaborative process which it promotes can bring unexpected benefits, from cost savings to innovative solutions. Design & build requires forward thinking and relies on a clear vision and mutual respect between designers, contractors and clients to know what is possible within the constraints. The pressure to deliver and be resourceful frequently gives birth to alternative solutions which deliver better results to the client.

September 2015 Middle East Consultant 35

on site roundup

Update FIFA turmoil unlikely to affect Qatar project pipeline, say experts The controversies surrounding the 2022 World Cup will not disrupt the pipeline of projects in Qatar, construction experts have told MEConstructionNews.com.

Ever since Qatar was awarded the World Cup in 2010, the country has come under increasing scrutiny from international media and human rights watchdogs, with concerns raised over the treatment of labourers on construction sites. In addition, the corruption allegations swirling around football’s governing body, FIFA, have led to doubts being cast on the viability of Qatar hosting the world’s biggest sporting event.

However, leading construction experts have told MEConstructionNews.com that Qatar’s construction market will continue to thrive, with or without the World Cup. “In my opinion, this is all media hype,” said Abdel Razzak Dajani, managing director of Xtramix, a construction materials supplier based in Abu Dhabi.

“Qatar is a young country and it has a lot of things it needs to build up.

They need infrastructure, rail and metro, and all these projects are ongoing as part of Vision 2030."

“For them to have the World Cup is basically the icing on the cake. If they get it, or if they don’t get it, it won’t really stop the Qataris,” he added.

Dajani also pointed out that FIFA would find it difficult to remove the World Cup from Qatar, having officially awarded it to the Gulf state. “FIFA can never back off from their decision, it’s been officially awarded and Qatar is doing whatever it can to build the stadiums, as required by FIFA.” Vasanth Kumar, CEO of Arabian MEP Contracting, said there were a number of opportunities for construction firms in Qatar, not including World Cup projects.

"If you look at the budget, these stadiums are only a fraction of the overall $200 billion being spent. The focus is on healthcare, education, roads, ports and airports. These are the areas of interest,” Kumar explained.

The need for infrastructure in Qatar will see construction continue in line with Vision 2030.

36 Middle East Consultant September 2015

Saudi arabia approveS 168 municipal projectS worth $266m Saudi Arabia has approved contracts worth $266 million to implement 168 municipal projects across 14 governorates, the Saudi Press Agency reported. Projects include storm-water drainage systems, environmental health projects, walkways, construction of municipality buildings and public facilities, seafront developments and several consultancy contracts.

Riyadh Province will see projects worth $41.8 million for public parks, walkways, cultural centres and water networks, while Jeddah will have contracts worth $46.3 million awarded.

Projects in the Eastern Province – worth a total of $30.1 million – will include studies on disabledfriendly cities and the completion of the northern Al-Khobar corniche.

on site roundup

Dubai Parks and Resorts expenditure tops $1bn Total expenditure by Dubai Parks and Resorts exceeded $1.03 billion as of the end of June, according to the latest filings by the theme-park developer. The deadline for the $2.9 billion project is in 14 months' time. Costs in the second quarter alone came to $217.79 million.

By then, 80% of the procurement requirements had been completed, while project infrastructure was 57% complete.

“Our second quarter 2015 financial results are in line with our plans,” said Raed Al Nuaimi, CEO of Dubai Parks and

Resorts. “During this period, there were no operating revenues and the losses were $7.89 million for the period ended June 30,” he said in a Gulf News report.

The developer’s total assets were $1.90 billion at the end of the second quarter.

Al Nuaimi said that first revenues will come in towards the end of 2016, once the theme park opens for business in October of that year. It estimates that its first full year of operations will deliver $653.3 million through ticket sales and ancillary revenues.

“In April, we announced our first revenue-generating deal with Picsolve International to create one of the world’s largest photography integrations, which is expected to generate over Dh100 million over a five-year period,” said Al Nuaimi.

“Our integration into the existing Dubai tourism infrastructure became more pronounced this quarter, as we signed a memorandum of understanding with DNATA to be the preferred travel partner.

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on site roundup

CBRE: ME investors to pump $15bn annually into global real estate

high-end, highriSe propertieS in demand in Saudi arabia, SayS report There is increasing demand for luxury high-rise property developments in key cities across Saudi Arabia, according to a report by Colliers International. Rising incomes and changing lifestyles are driving demand for more high-end developments in cities such as Jeddah, Riyadh, Damman, Khobar and Dhahran, the real-estate firm said.

It noted Jeddah’s Corniche as a prime location for quality new developments, such as the 1km-tall Kingdom Tower, which is due for completion in 2018.

“The strong demand for modern luxury highrise residential properties across Saudi Arabia is being demonstrated by high absorption levels among existing towers and prebooking among forthcoming supply,” said Imad Damrah, managing director, Colliers International in Saudi Arabia.

38 Middle East Consultant September 2015

Middle East investors are likely to invest an average of $15 billion annually in global real estate over the next few years, according to CBRE. A report by the property firm forecast that Middle East investors will target a more diverse geographic area over the next six to 12 months, with less focus on Europe and a shift to the Americas.

Investors from the region pumped $5 billion into the property market in the US and Europe during the first quarter of 2015, CBRE said.

While London continues to dominate with a 32% share of outbound investments from the Middle East, that is lower than the 45% recorded in 2013. Paris is next with a 15.8% share of investments, followed by New York with 9.6%.

In the first quarter of 2015, Middle East investors bought property worth $5bn in the US and Europe.

Sector preference will also grow more diverse, with more focus on hotels in the next 12 to 18 months, CBRE said.

“The Middle East will remain one of the most important sources of crossregional capital in the global real estate market,” said Nick Maclean, managing director of CBRE Middle East.

“The weakening of oil prices is likely to lead to the sovereign wealth funds reducing their total spend, but we see strong growth in overseas investment from families and other institutions, in many cases for the first time.”

Sovereign wealth funds are expected to remain a strong force in global property, with CBRE expecting $7-9 billion per annum to flow into the market from Middle Eastern funds in the near- to mid-term.

on site roundup

The crocodile park in Dubai will not only serve as a reserve for these crocodiles, but also as a breeding centre.

Work on Dubai’s $6m crocodile park to take 14 months Construction of Dubai’s first crocodile park is scheduled to be completed in just 14 months, following the appointment of a project contractor, officials say. The park, which will be around 20,000 sqm in size, will be based on those found in France, which replicate the animal’s natural habitat.

Construction of Dubai Crocodile Park is expected to start in September 2015, with delivery scheduled within 14 months, according to local media reports.

Obaid Ebrahim Al Marzouqi, head of Administrative Services at Dubai Municipality, said that a $6 million contract had been awarded to an unnamed contractor for the construction of the park.

Aside from being an attraction for tourists and residents, the park will also have an educational function, with schools,

universities and research centres able to conduct excursions to the park, Al Marzouqi said.

The park will also serve as a breeding centre, with crocodiles grouped in order to reproduce as they would in the wild.

Al Marzouqi explained that the park will provide the animals with healthy living conditions and round-the-clock care. The park will serve as a reserve, providing proper nutrition, medical attention and appropriate transport methods. In addition, regular seminars will be held there to spread environmental awareness and educate the public about natural sciences.

The project will be situated about 10km from Dubai International Airport, close to Mushrif Park and residential areas like Al Muhaisina, Al Mizhar 1 & 2, Mirdif and Al Warqa’a.

UAE, India aim to raise $75bn infrastructure fund The UAE and India aim to raise a $75 billion infrastructure fund for projects in the South Asian country, it was announced at the conclusion of a two-day state visit by Prime Minister Narendra Modi. The Indian PM presented the UAE government with investment proposals worth a total of $1 trillion as he looks to further reform the Indian economy.

A proposed UAE-India Infrastructure Investment Fund will aim to pump $75 billion into India, the two countries said in a joint statement, which also set a target of increasing trade by 60% over the next five years. The fund will “support investment in India's plans for rapid expansion of next-

generation infrastructure, especially in railways, ports, roads, airports and industrial corridors and parks,” a statement carried

by UAE state news agency WAM said.

The nations will also look to facilitate the participation of Indian companies in infrastructure development in the UAE. At least 2.6 million Indians live and work in the UAE, of which about 60% are blue-collar workers, according to figures from the Indian embassy.

“The visit of an Indian Prime Minister to the UAE after 34 years marks the beginning of a new and comprehensive strategic partnership between India and the UAE in a world of multiple transitions and changing opportunities

and challenges,” the joint statement said.

“In Abu Dhabi, His Highness Crown Prince Mohamed Bin Zayed Al Nahyan and Prime Minister Shri Narendra Modi agreed to seize this historic moment of opportunity and shared responsibility to chart a new course in their partnership for the 21st century.”

Earlier in his visit to the UAE, Modi visited a labour camp in Abu Dhabi, in a move said to highlight India’s concern about the welfare of its migrant workers in the Arabian Gulf.

The prime minister met with Indian workers based in the ICAD residential city in Abu Dhabi, which provides accommodation to 50,000 residents, WAM reported.

September 2015 Middle East Consultant 39

On Site ME CONSULTANT AWARDS 2015

Final word

and the award goes to…

O

n December 6, 2015, Middle East Consultant will host its very first award ceremony, an event that we know will become a standout evening in the GCC’s construction calendar. Held on the podium rooftop of the Jumeirah Emirates Towers, the ME Consultant Awards 2015 celebrates the region’s foremost construction specialists.

Reflecting the diversity of the industry, the inaugural awards will recognise the best consultants in the construction space, shining the spotlight on multi-disciplinary firms and most importantly, celebrating firms whose core fields often don’t get the recognition they deserve such as project management, cost consulting, landscaping, structural engineering, etc.

In addition to the awards for specific consulting disciplines, overall prizes will be presented for Project of the Year, Outstanding Individual of the Year and Consulting Team of the Year.

The winners will be chosen by a panel of respected judges, including the CEOs and managing directors of leading regional contractors – industry figureheads in the GCC – to ensure a balanced viewpoint and a fair result.

40 Middle East Consultant September 2015

We could not be prouder of what ME Consultant has achieved since we launched in February 2014. In the space of just 17 months, this magazine has become one of the most recognised and referred-to construction publications in the region, with interviews from the industry’s most respected consultants regularly featured within its pages.

Therefore, it’s natural for us to move the magazine forward to the next stage of its evolution and look to find ways to highlight the achievements of the industry.

We’ve spoken to enough of you by now to know that there is tremendous work being done across the region, led by some of the best and brightest minds in construction. It’s only right, therefore, to acknowledge these tremendous capabilities and achievements, and we hope that the 2015 ME Consultant Awards ceremony is the first of many. the full liSt Of categOrieS: 1.

Consultant Team

2.

Multi-discipline Consulting Company

3.

Structural Engineering Company

4.

MEP Engineering Company

5.

Architectural Company

6.

Interior Design Company

7.

Urban Design and Landscaping Company

8.

Project Management Company

9.

Quantity Surveying/Cost Consulting Company

10. Construction Law Advisory Company 11. Specialist Consulting Company 12. Project of the Year 13. Outstanding Individual

To nominate your company, go to the special awards page at www.meconsultantawards.com where you’ll find all the details needed to submit your nominations. You can also email your queries to davina.munro@cpimediagroup.com.

The success of these awards will be determined by you, the readers of ME Consultant, who are the heartbeat of the industry. We look forward to receiving your submissions, and from the entire ME Consultant team, we wish you all the very best of luck.

May the best firm win!

CONSTRUCTION AND SUSTAINABILITY AWARDS OF EXCELLENCE NOVEMBER 24, 2015 JUMEIRAH EMIRATES TOWERS, DUBAI

AWARDS 2015

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