DIVERSIFYING TO SUCCEED
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ver the course of the next decade the GCC will undergo unprecedented change, even by its own remarkable standards. Hospitalit y and infrastructure projects are set to be the largest growth sectors for a construction industry nearing full recovery from the dark days of 2008. Fuelled by mega-events such as the Qatar World Cup in 2022 and the Dubai Expo in 2020, construction work is under way, with projects that will fundamentally alter the landscapes of the cities of the GCC. The construction sector in the UAE, Saudi Arabia and Qatar is expected to record an average growth of 9% in 2015 alone, as projects move from design to construction. Of the $1.53 trillion worth of real estate projects under construction in the GCC up to 2025, the UAE leads the way with projects worth $940.55 billion in the design, bid or construction stage, according to Zawya Projects Monitor data. Saudi Arabia, Kuwait and Qatar follow with $461.21 billion, $205.88 billion and $82.84 billion respectively.
It is clearly a time of opportunity for companies that understand the fundamental needs of the industry. Al Rajhi Holding Group (RHG) is one of those companies. A well-established and diversified construction business group, it is fast becoming one of the leading conglomerates in the region. With a focus on high growth sectors such as Building Solutions, Real Estate Development, Contracting and Infrastructure and Industrial Sectors, the group is already a dominant player in the GCC market. With nine companies under the banner of the Building Solutions division, it has proved that it is a company that can offer a complete range of building solutions, from design and production to delivery and installation. This has paved the way for the division and by extension, the Al Rajhi Holding Group, to be recognised as one of the strongest partners that the GCC’s construction industry has. As the region begins to stride for ward, the Building Solutions division has been stepping up operations considerably as it looks to cement its place as a market leader.
MABANI STEEL LLC WE BUILD YOUR FUTURE
IMPRESSIVE RECORD Mabani Steel has supplied more than 2,000 projects for steel buildings in more than 43 different countries.
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ith the mega-event of the decade coming to Dubai’s sunny shores, it’s safe to assume the UAE can anticipate rapid growth in the construction sector as it gears up for Expo 2020. The future of construction already looks bright in the country, if projects announced in recent months are anything to go by. This expected increase in construction will not be restricted to the UAE alone. Cumulative growth in the industry in the MENA region is set to reach 80% over the next decade, surpassing a global industry growth rate of 67%. It’s almost impossible to imagine construction without steel, and the UAE is no exception. The country produced 2.9 million tonnes of steel in 2013, according to the World Steel Association. Enter Mabani Steel, a UAE-based designer, fabricator, erector and supplier of Steel Buildings Structures. The company, wholly owned by Al Rajhi
WWW.MABANISTEEL.COM
MABANI STEEL KEY PROJECTS Emirates SkyCargo at DWC Dubai, UAE SIBCO Mega Plant Jeddah, KSA Factory building for Air Liquide at Maritime City RAK, UAE
Holding Group, has its head office and factory in Ras Al Khaimah, UAE. With a factory that boasts a production capacity of 72,000MT per year of pre-engineered buildings and 48,000MT per year of Hot Rolled Structural Steel, Mabani Steel is well placed to take advantage of the coming construction boom. Having completed more than 2,000 projects, with a track record of supplying steel buildings to over 43 countries in the Arabian Gulf, Africa, South Asia and Far East, the company was an easy choice to be
“OUR PERFORMANCE IN 2014 HAS BEEN THE BEST EVER SINCE THE COMPANY’S ESTABLISHMENT IN 2006”
appointed to supply the upcoming Dragon City Mall project in Bahrain. Currently it has a number of projects underway in KSA, including the Jeddah Airport and the Aquat Food Factory, also in Jeddah. In a statement to Big Project ME, Mabani Steel management said that its performance in 2014 has been the “best ever since the company’s establishment in 2006”. As part of its future plans, the company aims to grow its business, with the UAE and KSA of particular interest. Plans include securing signature projects and repeat business. With the global spotlight on safety and sustainability in the construction, Mabani Steel has ensured compliance with ISO guidelines and work standards at the company comply with several ISO certificates. In 2012, the its factory was also awarded the Environmental Performance Certificate by the UAE Ministry of Environment and Water, in recognition of its efforts.
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CLADTECH INTERNATIONAL LLC THE GCC’S CLADDING SPECIALIST
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emand for aluminium products as composite aluminium cladding is set to increase in the GCC following the awarding of a total of $59 billion worth of contracts in 2013, a Frost and Sullivan report released earlier this year has found. Aluminium production is expected to increase considerably in the short-tomedium term, with the region expected to contribute about 15% of the world’s aluminium production by 2015. This largesse is expected to be a boon for cladding firms like Cladtech LLC. Set up in 2006 and backed by Al Rajhi Holding, Cladtech’s vertically integrated business structure, including design, development and processing capabilities, has seen it emerge as the region’s leading building envelope specialist. The aluminium, metals, cladding and glass divisions offer a full range of services, while the company’s skilled craftsmen are capable of producing more than 600 bespoke, unitised wall panels per day to the highest standard of quality.
CLADTECH KEY PROJECTS Damac Tower by Paramount Dubai Al Fattan Crystal Tower Dubai King Khaled International Airport Riyadh King Abdullah Project 4 Riyadh King Abdullah
Using the latest technologies and techniques, they ensure Cladtech products continue to enjoy a reputation for excellence, from its production facility in Ras Al Khaimah. Situated on a 90,000sqm plot, the facility – one of the biggest in the region – has a covered area of 40,000sqm and an uncovered area of 50,000sqm, including worker accommodation. It provides aluminium, glass, doors and windows and high-tech curtain wall packages, including project management, design, production and installation, complemented with in-house state of the art anodising and powder coat finish.
Its range of services include fabrication and manufacture of the curtain wall components (stick and unitised curtain wall), and the installation of all the aluminium works including supervision, tools and equipment, as well as the packing and transportation of components to site by its fleet of trailers. Due to this strength in logistics, manpower, storage, warehousing, Cladtech is working on a number of high profile projects, such as the Damac Towers by Paramount and the Al Fattan Crystal Tower. Besides the Middle East, Cladtech names Asia, Africa, Europe, Australia, the US and the UK as other potential markets.
Sports City Riyadh Yas Mall Abu Dhabi King Abdullah Financial District
“CLADTECH PRODUCTS CONTINUE TO ENJOY A REPUTATION FOR EXCELLENCE”
Riyadh
ANSWER ALL QUESTIONS Cladtech’s vertically integrated business structure allows it to meet all of its clients’ construction requirements.
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WWW.CLADTECH-INT.COM
ROMEO INTERIORS LLC FIRST CLASS, ON TIME, ON BUDGET
TRUST PARTNERSHIP Romeo Interiors says that its success is built on the principles of interdependence between it and its clients.
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ome 51 million hotel rooms are currently demanded in the Kingdom of Saudi Arabia, while Dubai alone accounts for 18.1 million of the UAE’s total demand of 26 million hotel rooms. The numbers are a clear indicator of how the busy hospitality sector is shaping up. Romeo Interiors LLC, a subsidiary of Al Rajhi Building Solutions, is keen on participating in the construction of the four- and five-star hotels of tomorrow. Romeo Interiors operates a brand new state-of-the-art, climate controlled 25,000sqm production facility in Ras
Al Khaimah to serve, along with, the residential and commercial sectors, the hospitality industry in the region. Romeo Interiors told Big Project ME that the firm views hospitality as a highly promising industry, and that it is constantly working to improve its capacities to cater to the sector across the GCC. Being part of the Al Rajhi Holding Group allows Romeo Interiors greater access to the KSA market, due to the support offered by its parent company. Meanwhile the firm continues to take on projects in the other GCC
ROMEO INTERIORS KEY PROJECTS Movenpick, Riyadh, KSA Novotel Al Barsha, Dubai Al Ghurair Expansion (Arjaan & Rayhaan by Rotana), Dubai Saudi Embassy, Cairo
“HOSPITALITY IS A HIGHLY PROMISING INDUSTRY AND WE’RE WORKING CONSTANTLY TO IMPROVE OUR CAPACITIES TO CATER TO THE SECTOR ACROSS THE GCC”
WWW.ROMEO-INTERIORS.COM
markets, most prominently in the countries of Qatar and UAE. Besides a workforce comprising almost 800 workers, the firm also has a joinery production facility and workshops that provide turnkey interior solutions. A strong base of employees is particularly beneficial to Romeo Interiors on refurbishment projects, which tend to demand a greater understanding of the structure and how to translate renovation plans into reality. The Al Ghurair City expansion in Dubai, the Saudi Embassy and the Consulate Office Building in Cairo are a few of its many prestigious projects. Romeo Interiors also caters to the market with its fit-out operations. The fit-out arm continues to differentiate its work from its competitors, especially in markets which are saturated with more complicated and innovative designs, along with clients who are looking to establish their hotels as high-end products.
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UNIPODS LLC CONSTRUCTION SIMPLIFIED
WHY BATHROOM PODS? The pod is a pre-engineered, pre-fitted, ready - plumbed bathroom, and is delivered ready for installation. The perfect ‘Plug and Play’ concept for today’s construction industry.
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he number of hotel rooms under construction is steadily growing in the GCC, with the UAE’s count of 17,137 rooms and Saudi Arabia’s 15,415 under-construction rooms leading the figures for the region. Unipods was launched to serve, amongst others, exactly this very hospitality industry, known in the region for its demands of speedy and quality construction. Unipods construction technology enables fully functional bathroom and kitchen units to be manufactured in controlled factory environments, away from the construction site, thus ensuring quality and bespoke production of units ready for immediate use. Saving time and cost – of labour and raw materials – is of critical importance across the hospitality sector, which in the Middle East can tend towards extravagant construction practices. While Europe has implemented technologies like Unipods for the last seven decades, the trend has only become popular in the Middle East in the last four years and Unipods is one of the few known local manufacturers of such technology. Unipods told Big Project ME that
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the manufacturer can deliver more than 10,000 bathroom and 50,000 kitchen units to the market and has even doubled its capacity this year. Having had tremendous success in the five-star hospitality market, Unipods is now also focusing its attention on the budget hotel sector, as the company believes that there is a major opportunity to consolidate its market share there. Drawing on the success of fivestar hotels which have used Unipods technology for their projects. Developers of budget hotels are also moving away from the traditional methods of sanitary ware installations towards the use of predesigned and manufactured pods. Saudi Arabia is a strong market for Unipods technology given the high religious tourism traffic it is
UNIPODS KEY PROJECTS Holiday Inn Hotel, Makkah Premier Inn Hotels, Pune and Goa Porto Arabia, Doha Al Habtoor Accommodation, Dubai Al Waseel Hills, Riyadh
known for, especially in the holy cities of Makkah and Madinah. Time restrictions and tight deadlines for construction in such locations make Unipods the ideal choice for developers that are seeking durability, convenience and speed of construction on their projects. The projects that Unipods has worked on have included some of the most prestigious in the region. One such notable project was the Holiday Inn Makkah – the largest Holiday Inn hotel in the world. Unipods has recently been appointed by SABIC to supply bathroom pods to their prestigious Al Waseel Hills luxury villas project in Riyadh. It has also worked on El Hejoun hotel, in Makkah, as well as a number of Premier Inn hotels in India, which is an indication that clients are warming to the benefits that Unipods offers.
“TIME RESTRICTIONS AND TIGHT DEADLINES FOR CONSTRUCTION IN LOCATIONS LIKE MAKKAH AND MADINAH MAKE UNIPODS THE IDEAL CHOICE”
WWW.UNIPODS.AE
MADA GYPSUM CO. LLC A SOLUTION SUPPLIER, A COST LEADER
KINGDOM OPPORTUNITY Projects in KSA are moving towards full systems solutions, making MGC the perfect choice.
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ada Gypsum Company, the Saudi Arabian subsidiary of Al Rajhi Holding Group, has had a strong 2014 buoyed by increased demand from both its local market and the regional GCC. This success has meant that the manufacturer has been able to solidify and increase its market share in all key target markets. Despite the political situation in the Levant region making future planning a complicated business, MGC has been able to hedge the instability by developing its other export markets. 2014 also presented further opportunities to the Yanbu Industrial City based firm, with the KSA market under going fundamental change. More and more projects in the Kingdom have begun to move towards a full systems solutions approach, along with a performance guarantee, rather than merely concentrating on the cheapest option available. While this represents a major opportunity for MGC, given its higher quality standards as compared to
WWW.MADAGYPSUM.COM
its local competitors, it also poses a challenge as the Saudi firm will be exposed to direct competition from international manufacturers. However, it remains confident in its ability to meet this competition on an equal footing. It has already begun building up a significant technical team that will enable it to continue competing and performing in this new market segment. In response to the UAE becoming an increasingly important market for MGC, the company has decided to open a branch in the country and enhance
MADA GYPSUM KEY PROJECTS KAPSARC Riyadh King Abdullah Financial District Riyadh Princess Nora University Riyadh Jabal Omar Makkah
“MGC AIMS TO BECOME THE LARGEST MANUFACTURER OF GYPSUM PLASTERBOARD AND RELATED PRODUCTS IN THE GCC AND MENA REGIONS WITHIN A PERIOD OF FIVE YEARS”
its resources in that particular market. Over the coming few years, MGC is expected to substantially increase its focus on the KSA, UAE and Qatar markets due to their strong growth forecasts for the foreseeable future. It intends to further build up its presence in the retail market by becoming the clear leader in all its core markets. By leveraging its position as a cost leader and preferred system supplier, MGC aims to become the largest manufacturer of gypsum plasterboard and related products in the GCC and MENA regions within a period of five years, having launched a cement board plant in 2014. Plans to further increase its plasterboard product range are also underway as the manufacturer looks to provide clients in the GCC with the full range of options as available in international markets. With plans for expansion and consolidation already in the pipeline, MGC’s next big business focus is to become a full system solutions provider to the growing market in the GCC.
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PRETECH LLC
SAVING CONSTRUCTION TIME WITH CONSISTENT QUALITY
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emand for precast construction is predicted to increase, with Saudi Arabia, Qatar and the UAE amongst the leading markets for the technology. While the UAE and Qatar are using precast concrete on large-scale infrastructure projects, in Saudi Arabia it will be used to help the government to build a massive 500,000 new homes.
One of the early entrants into the KSA market was Precast Technologies Company (PreTech), which was established in 2006 as a 100% owned company by Al Rahji Holding. With its modern, state-of-the-art production facility with sales and administrative office in Yanbu, there are few precast companies in the Kingdom that share PreTech’s comprehensive range of
“PRETECH PROVIDES SERVICES RANGING FROM DESIGN THROUGH TO MANUFACTURE, SUPPLY AND ERECTION”
precast solutions, giving it a significant advantage in the marketplace. The company provides services ranging from design through to manufacture, supply and erection. In addition, its Jeddah office boasts in-house engineering design teams that have the capability to assist and advise owners, consultants, architects, engineers and builders in the design of their project, using hollow core slabs (HCS) and other precast concrete elements. With an annual production capacity of 1 million sqm of HCS and 45,000 cubic metres of other elements, the company is well placed to serve a growing need in a Saudi Arabian marketplace that has a tremendous amount of untapped potential for its particular brand of construction technology.
PRETECH KEY PROJECTS Haramain Gate (SANG) Yanbu Saudi Alterais Cladding KAAU, Jeddah SABIC Housing boundary wall Yanbu
TIME SAVER PreTech’s solutions can save up to 25% of construction time compared to traditional techniques.
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WWW.PRECAST-TECH.NET
TECHNOBIT LLC CUSTOMER-FOCUSED TECHNOLOGIES
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few years ago, the concept of having structures with basements that reach the water table or skirted water canals was an alien one to the GCC. However, since the construction boom took hold projects have become increasingly complex. Water features and artificial islands are now part and parcel of standard designs, and the need for waterproofing specialists grows
ever larger. Established in 2006, Saudi Waterproofing Company (TechnoBit), is primed to take advantage of this rapidly expanding market sector. A fully-owned entity of Al Rajhi Holding, it launched its commercial operations in 2008 using the very latest technology available. Since then, TechnoBit has established itself as a strong presence in the waterproofing market. Its range of products includes
TECHNOBIT KEY PRODUCTS Technomat Technoplast Technogum Technotwin Technoglass Technoflex
Technomat, Technoguard and Technogum. Its Technoprotect product has been specified by most projects in KSA, the company claims proudly. Meanwhile, its factory at Yanbu Industrial City features Europeanstandard, state-of-the-art technology. It manufactures a wide range of bitumen membranes which comply with global standards, making TechnoBit a dominant player in the market.
“TECHNOBIT’S FACTORY AT YANBU INDUSTRIAL CITY FEATURES EUROPEANSTANDARD, STATE-OF-THE-ART TECHNOLOGY”
WWW.TECHNOBIT.NET
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ELECTROPUTERE QUALITY, PERFORMANCE, EXCELLENCE
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he GCC region can expect to see its population soar by 30% to more than 50 million people over the next decade, a result of strong economic development. This scale of growth inevitably leads to pressure on the region’s utilities, creating a demand for more electricity generation to sustain an ever-increasing population. The GCC will require an estimated 60,000MW of new capacity by 2015 and a by-product of this demand is a need for electrical equipment for energy distribution. Electroputere, a Romanian company founded in 1949, is keen to capitalise on this opportunity and
ELECTROPUTERE KEY CLIENTS Siemens ABB ArcelorMittal E.ON
build its presence in the GCC as part of the Al Rajhi Holding Group. The firm’s main products include power transformers in the range of 10 to 440MVA and electrical rotating machines in the range of 200 to 7,000kW. The products are predominantly sold in Europe, the Middle East and North Africa. Electroputere has played a key role in the establishment of power systems and the modernisation of the railway and urban transport systems in Romania. The company was recently appointed on projects in Saudi Arabia including the installation of twelve 67MVA power transformers for Al Babtain and nine 67MVA transformers for Al Fanar.
“THE COMPANY’S MA JOR GROWTH MARKETS IN THE REGION ARE ALL GCC COUNTRIES, WITH KSA BEING OF SPECIAL INTEREST. ELECTROPUTERE INTENDS TO OPEN A NEW SALES OFFICE IN THE KINGDOM TO STRENGTHEN ITS PRESENCE IN THE MARKET”
The company’s major growth markets in the region are all GCC countries, with Saudi Arabia being of special interest. Electroputere intends to open a new sales office in the Kingdom to strengthen its presence in the market, the firm told Big Project ME in a statement. Currently, the company is implementing a comprehensive investment and reorganisation programme including the renewal of production machines and equipment, refurbishment of buildings, occupational health and safety programme, process development and many others. With a targeted 20% increase in revenue for 2015, Electroputere’s goal is to become a global provider of power transformers and rotating electrical machines. Electroputere’s stated vision is to become a leading manufacturer of power transformers in Europe. This in turn will lead to an increase in sales all over the Eurozone and the MENA regions, the company added.
POWER MARKET Saudi Arabia is a major market for Electroputere.
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WWW.ELECTROPUTERE.RO
ELSEWEDY CABLES LTD PROVIDING SAFE ENERGY
PROFIT MARKET Elsewedy Cables saw gross profits increase by 18% to $130.33 million.
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ith roots going back over 70 years, Elsewedy is one of the oldest and most successful industrial and trading business groups across the MENA region. One of the most experienced manufacturers operating in the Middle East, it successfully operates 23 production facilities in 12 countries in Africa, Europe and Asia. Elsewedy Cables is partially owned by Al Rajhi Holding, along with Elsewedy Electric from Egypt. It exports a wide range of high quality and safe products to more than 110 countries worldwide. The company built its factory in 2006 over an area of 104,000sqm in Yanbu, Saudi Arabia with an initial planned annual capacity of 35,000T/year. A proficient supplier that focuses on client demand and requirements,
WWW.ELSEWEDY.COM
Elsewedy Cable’s product range includes low voltage cables (0.6/1 (1.2) kV cables) and control cables and medium voltage cables (6/10 (12) kV, 8.7/15 (17.5) kV.
“GROWTH HAS BEEN COMPLEMENTED BY GAINING APPROVAL FROM DIFFERENT PARTS OF THE GOVERNMENT AND PRIVATE SECTOR FOR PRODUCTS”
Elsewedy Cables has targeted entering new markets in different regions within Saudi Arabia. These aggressive expansion plans have coincided with sales increasing significantly, the company has said. Growth has also been complemented by Elsewedy Cables gaining approvals from different parts of the government and private sector for its range of products. It has implemented plans for the development of its total telecom solutions, turnkey projects, wind energy generation and solar energy, the company added. In H1 of 2014, Elsewedy’s Wire and Cables revenue increased by 12% from H1 2013 to $931.9 million. Gross profits increased during the same time by 18% to reach $130.33 million. 87,448 tonnes of cables were sold in H1 2014.
ELSEWEDY CABLES KEY PRODUCTS Overhead Conductors High Voltage Cables Fire Resistant Cables Control Cables Extra High Voltage Cables Copper Telecom Cables
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P.O.BOX 18927 RIYADH 11425 SAUDI AR ABIA TEL: +966 11 511 8888 FA X: +966 11 511 8873 W W W. ALR A JHI-HOLDING.COM