119
FEBRUARY 2016 meconstructionnews.com
THE BUSINESS OF CONSTRUCTION
Appetite for investment
Rahail aslam, ceo of select gRoup, outlines his plan to coRneR the dubai Real estate maRket
Contents
Issue 119 February 2016 08
18
24
32
40
44
18 Appetite for Investment
renewables expert, on the future of renewable energy
04 ME Construction News.com OnlIne
The biggest stories from Big Project Middle East’s home on the web
In prOFIle
Gavin Davids interviews Rahail Aslam, CEO of Select Group
08 Electrical fault caused NYE fire 24 Like No Other Place The bIg pIcTure
Dubai police say short circuit caused fire at The Address Downtown Dubai
12 Egyptian firms to merge InTernaTIOnal news
Construction companies looking to compete for major projects within the country
14 Bahrain market overview MarkeT repOrT
CBRE examines the opportunities for investors in the various sectors of Bahrain’s real estate market
prOjecT prOFIle
Big Project ME gets a first look at the ICD Brookfield Place project, which has just broken ground in DIFC
32 Full Speed Ahead raIl cOnsTrucTIOn
Jerusha Sequeira examines why railway investment is crucial for the region and looks at technological advances in the sector
38 The World Needs a Big Change cOMMenT
Barny Evans, WSP | Parsons Brinckerhoff
40 Flicking the Switch energy cOnservaTIOn
Gavin Davids talks to Lutron Electronics about changing attitudes towards energy conservation and tapping into the rapidly growing green building market in the Middle East
48 Top Tenders Tenders
Big Project ME lists the region’s biggest tenders for February 2016
56 Advancing Australia’s Cause lasT wOrd
Mahmoud Fahmy of Engineers Australia, talks about the progress made by the chapter in the six months since its inception February 2016 1
Introduction
Come to the table
D
uring my conversation with Rahail Aslam for this month’s issue, it was striking to hear him talk about how, as a developer, he feels that it is his responsibility to develop a healthy and productive working relationships throughout his projects’ supply chains. Ultimately, he says, this allows the projects to continue in a smooth and unfettered manner, which benefits all parties involved. This attitude seems so simple and straightforward that it makes me wonder why more developers don’t have the same mind-set. As he puts it, “Our view is that, whatever the issues are, bring them to the table, resolve them and then move on so that the project and relationships are not harmed.” With so many developers here facing issues with their supply chain, and with market conditions likely to only get more difficult, I can only hope that more follow Aslam’s lead and embrace a culture of inclusivity and collaboration. Moving on, I’ve been intrigued to see and hear the reaction to the fire that took place on New Year’s Eve at The Address Downtown. While much of it has been along expected lines, with Civil Defence officials looking to identify
EDItORIAL EDItOR GaVin DaViDS gavin.davids@cpimediagroup.com +971 4 375 5480 REPORtER JeRuSHa SeQueiRa CPI MEDIA GROUP FOUnDER Dominic De SouSa GROUP CEO naDeem HooD
jerusha.sequeira@cpimediagroup.com +971 4 375 5477 OnLInE EDItOR Ben FLanaGan ben.flanagan@cpimediagroup.com SUB EDItOR aeLReD DoYLe
PUBLISHInG DIRECtOR RaZ iSLam raz.islam@cpimediagroup.com +971 4 375 5471
aelred.doyle@cpimediagroup.com ADvERtISInG COMMERCIAL DIRECtOR micHaeL STanSFieLD michael.stansfield@cpimediagroup.com
EDItORIAL DIRECtOR
+971 4 375 5497
ViJaYa cHeRian
SALES MAnAGER FaaJu aBDuLFaTaH
vijaya.cherian@cpimediagroup.com
faaju.abdulfatah@cpimediagroup.com
+971 4 375 5472
+971 4 375 5495
2 February 2016
MARKEtInG MARKEtInG MAnAGER LiSa JuSTice lisa.justice@cpimediagroup.com +971 4 375 5498 DESIGn ARt DIRECtOR Simon coBon CIRCULAtIOn & PRODUCtIOn DIStRIBUtIOn MAnAGER SuniL KumaR sunil.kumar@cpimediagroup.com +971 4 375 5476 PRODUCtIOn MAnAGER ViPin V. ViJaY vipin.vijay@cpimediagroup.com +971 4 375 5713 DIGItAL WEB DEvELOPER mohammad awais WEB DEvELOPER umair Shamim
the cause of the fire and clamp down on the obvious issues, the response from the industry has been intriguing. A lot of the best-known and most respected voices in the fire-safety industry have come together to say that more needs to be done when it comes to tracing and verifying the chain of supply for fire-rated materials. The suspicion is that while the intent and specifications from clients are in the right spirit, somewhere along the supply chain, the message is being lost and we’re ending up with shoddy, unsafe materials being installed on some of our highest-profile buildings. This is a situation that cannot be allowed to continue, and we’ll most definitely be discussing this in depth in coming issues of Big Project ME. Perhaps it’s time to take Rahail Aslam’s advice and bring everyone to the table and resolve the issue together.
Gavin Davids Editor gavin.davids@cpimediagroup.com
PUBLISHED By
Registered at imPZ Po Box 13700 Dubai, uae Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com Printed by Printwell Printing Press LLc © copyright 2016 cPi. all rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
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L A U N C H PA R T N E R
Big Project Middle East’s home on the web MOST POPULAR
1
EDITOR'S CHOICE
READERS' COMMENTS
Dubai fire investigation nears completion
Probe finds an electrical short caused the blaze
2
Dubai’s Emaar appoints DUTCO to restore fire-
damaged Address Hotel Restoration to be carried out “in record time” after New Year’s Eve blaze
PHOTO GALLERIES
In pictures: Central Bank of Kuwait headquarters China State Construction and Engineering Corporation (Middle East) won the 2015 Big Project Middle East Project of the Year Award for this building. See photo galleries at: meconstructionnews.com/photos
3
Arabtec, TAV clinch Bahrain airport contract
Construction deal part of $1.1bn airport upgrade
4
Syed Ibrahim, via the website
Dubai fire: Emaar sees “no material impact”
READER POLL
on company, hotel insured
What is your outlook for the construction industry in 2016?
Shares in the company fall on first day of trading after the incident
5
“Reducing cladding is a good option to prevent the spread of fire (“UAE to curb cladding use after Dubai fire – official”). I can also suggest one more option: external sprinklers every 3-4 metres in height would be an additional option to stop fire spreading. They could be easily controlled by the local building guard and helpful for fire and safety people as well. It can be monitored and controlled from ground floor for high-rise buildings”
Saudi Aramco inks second deal to build
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State-owned oil company
Smart construction helmet with thermal vision, AR
has signed a contract
Intel and Daqri show off the smart helmet at CES 2016.
to build 791 homes
See videos at: meconstructionnews.com/videos
16%
19%
16%
49%
Positive: Lots more projects on the table
No change: About the same as 2015
Good: A few more deals
Bleak: Business will be down on last year
Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com 4 February 2016
The big picture
Electrical fault caused the Address Downtown fire, Dubai Police say NYE fire creates debate over quality and reliability of cladding materials The major fire at the Address Downtown hotel in Dubai was caused by an electrical fault, police have said. A short circuit was behind the New Year’s Eve blaze, which caused several injuries but no deaths, according to the results of an official report, police said at a press conference and via Twitter. No flammable liquids played a role in the blaze, the official report confirmed. Officials also showed photographs of exposed wiring in the 63-storey tower during the press conference. The fire has also raised questions over the quality of cladding materials used in some UAE buildings. A UAE-wide series of building inspections has been ordered following the incident, in an attempt to ensure fire safety across the country. Rashid Thani Al Matroushi, director of Dubai Civil Defence, said that the UAE Fire and Safety Code would be updated to curb the use of cladding on buildings higher than nine storeys under certain conditions. Jamal Ahmed Ibrahim, director of preventive safety at Dubai Civil Defence, said that the Ministry of Interior has set up a committee to start the UAE survey, which will include new inspections of building cladding. “We are doing a survey for all buildings in the UAE, not only in Dubai, and we will see the reports, so if there is any building with any issue, we will find solutions,” he was quoted as saying by UAE daily 7DAYS. Dubai Civil Defence has been examining the cladding on the 63-storey building, which 8 February 2016
15
Number of people who suffered injuries during the Address Downtown fire, according to officials
Ibrahim said “did not follow the specifications, which could explain why the fire spread so quickly.” He cautioned that it was a preliminary observation and that it had not been officially confirmed, because the investigation into the fire was still ongoing. Emaar, the developer of the Address Hotel, said all its buildings meet the required standards. “All our buildings are developed
as per the specifications by the concerned authorities. The buildings are tested periodically and cleared for adhering to the regulatory standards,” a spokesperson told Abu Dhabi newspaper The National. Officials say fourteen people suffered minor injuries, with one moderate injury, while one person had a heart attack because of the fire. Electrical fault Officials have said that the fire that gutted the Address Downtown was due to a short circuit.
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The big picture
China’s CSCEC wins contract for Indigo Zen development in Dubai Chinese contractor has started work on four show villas for project Dubai-based property developer Indigo Properties has announced that the China State Construction Engineering Corporation (CSCEC) has been commissioned to work on show villas for its Indigo Zen luxury residential development. The contractor, the world’s largest housing construction contracting company, has started work on four show villas for the project, which is scheduled for completion by June 2018. The Chinese firm’s regional arm, CSCEC Middle East, will carry out the project.
“We are very pleased to bring CSCEC Middle East on board to work on the show villas on our Zen development,” said Dev Maitra, CEO of Indigo Properties. “The company has an impressive portfolio of projects in China and the Middle East, including the UAE. It has worked with government and private companies on residential, hospitality and infrastructure projects. Work has begun on the villas and we expect them to be completed in about six months.” CSCEC Middle East has previously worked on a number
of high-profile projects in the GCC region, including the awardwinning Central Bank of Kuwait Headquarters, the Doha Tower and Nad Al Sheba Racecourse. Indigo Properties’ Zen development is a 346-villa project that will mimic a “lush, tropical paradise”, the developer says. It will include running waterways, meditation zones and green spaces. The development will be spread across 4.5 million square feet of land in Dubai Golf City. It will include retail areas, clubhouses and pavilions with covered outdoor seating. The community will
comprise four-, five- and sixbedroom villas and three-bedroom townhouses, ranging from 4,000 to 10,000 square feet in size. Indigo Properties has completed construction and handover of more than 1.5 million square feet of property in Dubai, with more in the pipeline. Its other projects include the 68-villa Orange Lake development in Jumeirah Golf Estates, 117-townhouse development Indigo Ville in Jumeirah Village Circle, and Indigo Spectrum 1 and Indigo Optima, two buildings in International City.
“Work has begun on the villas and we expect them to be completed in about six months”
Work begins China State Construction and Engineering Corporation’s Middle East arm will carry out the Indigo Zen project.
10 February 2016
The big picture
Project approved Abu Dhabi’s Reem Mall is expected to be completed in 2018.
Abu Dhabi’s $1bn Reem Mall gets final approvals from Urban Planning Council Granting of approval comes six months after concept plans were approved The upcoming Reem Mall in Abu Dhabi has been granted detailed planning approval by the Urban Planning Council (UPC). The $1 billion leisure, shopping, entertainment and dining destination was given the final go-ahead required to take the project to the next stage, the UPC said in a statement. “The UPC’s granting of detailed planning approval comes only six months after the mall’s concept plans were approved – a rapid turnaround for a project of this scale,” the statement said. “More than 100 senior Abu Dhabi government and business leaders
gathered today for a special event to mark this significant milestone, pledge their ongoing support for Reem Mall and mark the continued momentum that the project has built over the past 18 months.” Shane Eldstrom, Chief Operating Officer for Reem Mall, said the project had seen “incredible progress” over the past 18 months. “The UPC has been working closely with us throughout the planning process, to ensure that the project responds to the needs of local communities, that it is safe and that it meets the highest standards of energy and environmental design,” he added.
$1 billion
Total value of the Reem Mall development
The UPC said it met regularly with the Reem Mall development team to incorporate design enhancements put forward by its Urban Development and Estidama Sector. “The UPC also had to ensure the project fit within other relevant master plans, including the Al Reem Island Integrated Concept Master Plan, which was approved in April 2015, and the mixed-use Najmat Abu Dhabi community on the south of the island in which the mall is situated,” it added. Reem Mall is expected to open in 2018, and will include the world’s biggest indoor snow play centre and some 450 stores, including 85 food and beverage outlets. It is being developed by Kuwait-based NREC and UPAC. In December 2015, the mall received approval by authorities for its transportation impact
study, with the Abu Dhabi Department of Transport praising the work that went into planning the transport infrastructure of the project. “The Department of Transport approval is a key milestone in any project. The transportation infrastructure serving Reem Mall will be in a class of its own, making getting to and from Reem Mall convenient, fast and pain-free. There will be 6,800 parking spaces available to visitors,” said Eldstrom. “The Abu Dhabi Department of Transport should be commended for the cooperative and collaborative approach taken with developers. Their team committed countless hours to working with us to ensure that the design meets the needs of the project and the community for the long term.” February 2016 11
The big picture
4
1
1. Balfour Beatty appoints new gloBal procurement chief Balfour Beatty has appointed a new global procurement chief, following a shakeup of the UK contractor’s buying department. According to the UK’s Construction Enquirer, Grahame Ball joined the firm as international procurement director in January 2016. It is understood that he will take on a new role, but former UK procurement director Martin Chown will leave the company. “It was all quite sudden, and the official line is that Martin has decided to leave the company,” said an anonymous insider to the Enquirer. “There seems to be a handover period, so he hasn’t actually left the firm yet.” Ball previously worked at a number of blue-chip organisations, including Diageo and Microsoft. His previous role was chief procurement officer at Colt Technology Services, where he delivered their procurement and supply chain strategy. Balfour Beatty has so far declined to comment, beyond confirming Ball’s appointment.
12 February 2016
$120.5m Value of new bid by USbased Cathexis for UK contractor ISG
2. two egyptian construction firms merge Egyptian companies Misr Concrete Development Company and Cairo Contracting and Real Estate Investment Company are set to merge. Hassan El Bayae, chairman
of the concrete firm, said the merger move is in line with a decision taken by parent company Holding Company for Construction and Development (HCCD). He added that the merger was to allow the restructuring of contracting companies in Egypt so as to
raise their capabilities and allow them to compete for major projects within the country. The majority of companies affiliated to HCCD have smaller business volumes, and as a result the merger will contribute towards reinforcing those companies’ activities.
The big picture
36.6m
4. india to work with norway to reduce construction waste
Height of Mao Zedong statue being built in China’s Tongxu County
2 3
50,000
Number of apartments that could be under construction in Brisbane
3. uae’s lulu to invest $150m in lucknow, india The UAE’s LuLu Group, well-known for its chain of supermarkets across the region, has announced it will invest $150 million in Lucknow, the state capital of Uttar Pradesh (UP) in India. MA Yusuff Ali, the Keralaborn managing director of the group and among India’s wealthiest citizens,
announced the company’s plans to build a convention centre, shopping mall and five-star hotel in Lucknow, Indian media reported. With a net worth of $3.4 billion, the UAE-based businessman made headlines last July for his $170 million purchase of London’s iconic Scotland Yard police headquarters building, which will be converted into a luxury hotel.
“I have a very close association with Uttar Pradesh,” Ali said, quoted by the Times of India at the UP Pravasi Diwas, an event aimed at attracting investment from non-resident Indians. The company’s investment in the state is set to create jobs for 3,000 people, Ali added. “I don’t believe in declarations, we believe in work. If everything is ready, we promise to begin our construction.”
A memorandum of understanding was recently signed between the Norwegian research institute SINTEF and the Central Public Works Department (CPWD) for cooperation in the development of human resource capability building and scientific research in the field of Recycling of Construction and Demolition (C&D) Waste in India. SINTEF is Norway’s largest research institute for energy and climate technology. The Central Public Works Department in India is responsible for the construction and maintenance of public buildings. India’s construction industry generates an estimated 10 to 12 million tonnes of waste annually. Nearly 50% of this waste material is not recycled, experts say. The main objective of the MoU is to encourage the recycling of construction waste for new purposes, a more energy-efficient method, especially when compared to producing materials of new resources.
February 2016 13
Market report
baHrain real estate infrastructure investment Bahrain will be partially cushioned by continued infrastructure investment by the GCC development fund.
Economic overview GCC markets are forecast to face prolonged economic challenges over the coming months with decreased oil prices being the primary contributing factor. However, analysts indicate that the impact in Bahrain will be partially cushioned by continued infrastructure investment from the GCC development fund. Nevertheless, Oxford Economics has predicted GDP growth will slow to 1.9% in 2016 from 2.8% in 2015, while Bahrain’s budget deficit is set to quadruple to 13.8% of GDP in 2016, on the back of forecast average oil prices of US$47 per barrel over the next 12 months.
Bahrain in numBers
Inflation has risen to a fivemonth high of 2.3%, up from 1.6%, while 2016 looks set to see average inflation of around 2.5%. Government spending is coming under increasing pressure and despite political sensibilities, the public sector wage bill and government subsidies look set for significant cuts, as they make up nearly two thirds of total expenditure. Despite the negative impacts of the ongoing oil slump, the real estate sector in Bahrain has proven to be quite resilient, with solid returns still considered achievable, affording hardpressed investors the opportunity
for potential growth in an otherwise unpredictable market. This was underlined by the 7% growth achieved within the construction sector during early 2015, as a raft of new development projects were launched across all real estate asset classes, but notably in the retail, hospitality and residential sectors. Investment in largescale infrastructure projects, supported by the $10 billion GCC aid fund, including the multibillion-dollar Bahrain airport expansion and the expansion of government affordable and social housing schemes, are also at the forefront of this trend.
slowed to 2.4% in Q3 2015 and is forecast to grow at 2.8% for 2015 overall. • Strong construction sector witnesses 7% growth in H1 2015. • Development of neighbourhood retail centres continues apace with several new projects announced and others nearing completion. • Inflation has risen to a fivemonth high of 2.3%, as the removal of meat subsidies and the reduction of fuel subsidies start to bite.
Prime average office rents (Q4 2008 - Q4 2015)
• The slowdown in Asian 0 -5%
8 -10%
6 4
-15%
2 -20% Q4 2008
14 February 2016
Q4 2009
Q4 2010
Q4 2011
Q4 2012
Q4 2013
Q4 2014
Q4 2015
economies has had Annual change (%)
10
a negative impact on Bahraini exports, as revenues slump 30%. • Renewed global uncertainty dampens GCC outlook for 2016.
Source: CBRE 2015
12
BD/sqm/pm
• Bahrain’s GDP growth
Market report
MarKet OVerVieW Office market
The commercial office market continues to face stiff challenges with downside risks again appearing on the horizon. Business Monitor International has reported that Bahrain’s traditional position as the regional centre for Islamic finance is facing increasing competition from Dubai, Doha and Riyadh, which could lead to further suppression in demand for office space. In addition, the well documented
slump in oil prices is likely to lead to consolidation of space requirements in the hydrocarbon sector, with the real potential for current expansion plans to be sidelined. Budgets to fund Ministry office projects may also be affected by the widely discussed cuts in short- to medium-term government spending. Average rentals for leading grade A projects remain stable for now, typically quoted at BD7-9 per sqm.
manama office stock 2015
however limited and has until now been led by government organisations and established international firms with an existing presence in the Kingdom. Landlords who are flexible in their approach and diversify their offerings to meet tenants requirements, while providing attractive parking solutions and on-site facilities, are able to gain greater traction and achieve more favourable occupancy levels.
Capital Governorate office vacancy rate and stock (2005-2015)
6%
50
1.6
40
1.4
30
32% Diplomatic
Sanabis
Al Seef
Financial Harbour
Bahrain Bay
20 1
10
0.8
0
0.6
-10
0.4
-20
Vacancy (%)
44%
1.2 Stock (million sqm)
9% 9%
Although it is difficult to see how these levels can be maintained, with downward pressure on demand and with an additional 70,000sqm of office space in Bahrain Bay and Seef coming on stream during H1 2016. The main demand source continues to be existing occupiers looking to consolidate or upgrade accommodation, although there is still some call for larger traditional offices in shell and core condition. This source of demand is
-30
0.2
-40 2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
strong growth The Bahraini construction sector saw 7% growth in H1 of 2015.
February 2016 15
Market report
Hospitality market Q4 2015 heralded a period of consolidation in the hospitality sector, with no major new announcements but steady progress made towards the launch of two new developments in early 2016. The Rotana Downtown in central Manama, along with Wyndham Grand at Bahrain Bay, will add a further 509 rooms to the five-star hotel stock. Among others, the Marriott Residence Inn at Water Garden City is
also expected to be completed in 2016. Emaar Hospitality Group will reportedly build five new hotels in the Kingdom by the end of 2018, keeping Diyar Al Muharraq firmly in the property news: The Address Marassi Al Bahrain The Address Residences Marassi Al Bahrain Vida Hotels and Resorts Vida Marassi Al Bahrain
Vida Residences Marassi Al Bahrain Construction on the waterfront in Seef continues at the previously announced The One and Only Resort. Aimed at the leisure and business sectors, the resort will feature 150 guest rooms plus suites and villas. The project also boasts a private beach, together with world-class dining and retail options. This much-anticipated addition to the five-star
hospitality scene is expected to open towards the end of 2016. According to figures released by the World Travel & Tourism Council, Bahrain ranked 95 out of 184 countries in 2015 with 10.6% of GDP coming from the travel and tourism sector. However with a ranking of only 167 out of 184 for growth of contribution for 2015, at just 0.3%, this may point towards stiff competition to fill rooms in the medium term.
number of hotel keys by rating - Bahrain (2011 - 2015) 5000
Number of hotel rooms
4000
3000
2000
1000
2011
2012
2013
2014
2015 5 Star
4 Star
3 Star
The retail sector continues to dominate real estate activity in Bahrain, with Q4 2015 witnessing several significant openings and new announcements. Diyar Al Muharraq, in a joint venture with Emirati developer Eagle Hills, announced the launch of Marassi Galleria in Q4 2015. The project is a 178,000sqm urban lifestyle retail and entertainment
16 February 2016
district with family plaza and festival waterfront dining, forming an integral component of the 875,000sqm Marassi Al Bahrain project. This comes soon after the opening of Dragon City at Diyar Al Muharraq. This new project is a unique retail destination featuring Chinese goods and establishments with a total of 780 shop units
spread over 55,000sqm. It opened its doors to the public at the end of December 2015. Elsewhere in the retail sector significant openings scheduled for Q1 2016 include Galleria in Zinj, a Dadabhai project offering over 42,000sqm of GLA, closely followed by the $40 million Wadi Al Sail retail mall in Riffa anchored by Geant. Community malls serving new
residential districts continue to emerge as a dominant theme and nowhere is this more evident than in New Janabiya, with no fewer than four separate malls under development or planned. The 5,000sqm Al Mercado, anchored by Al Osra supermarket, is well underway and three other retail projects totalling nearly 50,000sqm of leasable space are being considered.
Source: CBRE 2015
Retail market
Market report
Opportunities await The residential sector will present opportunities to investors to leverage advantages that Bahrain has over its GCC neighbours.
Residential market With the retail and hospitality sectors rapidly approaching saturation point and the commercial office market still labouring amid weak demand, the residential sector may present opportunities for investors to leverage key advantages that Bahrain enjoys over other GCC markets. According to the recently published InterNations Expat Insider Survey 2015, Bahrain ranked highest of the Gulf countries for lifestyle, cost of living and education, at 17th globally ahead of the UAE, 19th and Oman, 24th. A KPMG report published in 2015, comparing the business costs in the GCC, highlighted that the overall cost of doing business in Bahrain was 35% less than the UAE and 46% less than Qatar. The report went on to illustrate that education costs in Bahrain were 80% lower than the UAE and 103% less than Qatar, while housing costs in both locations were around double those of Bahrain. If you also consider that real estate costs per square metre for apartments in Bahrain
average $2,072 and $5,037 in the UAE and that transaction costs are significantly lower in Bahrain, a case can be made for the residential sector offering potential investment opportunities, supported by a low real estate cost base, attractive business costs and Bahrain’s popularity as a place to live for MENA and Western expatriate families and bachelors. This is further underscored by its growing ties with China and increased Chinese investment activity in the Kingdom and the re-signing of Free Trade Agreements with the US, as well as the strategic importance of Bahrain as a base for the US Fifth Fleet. The expansion of British Navy activity, with the announcement of HMS Juffair, a new naval facility in Mina Salman, will also increase demand for residential space in the immediate vicinity. Opportunities also exist in the compound villa sector with strong occupancy levels in areas popular with expatriates, especially those with good access to the Saudi Causeway
resiDenTiaL Case sTuDY – Bin FaQeeh and popular schools. This includes Janabiya and Saar which are reportedly running at close to 100% occupancy. This is despite employment concerns in the hydrocarbon sector, which points towards greater diversification of the expatriate workforce in Bahrain. Prime apartment submarkets also continue to fare well, with Reef Island retaining its position as the most expensive apartment location, supported by strong demand. In addition, Amwaj Islands is emerging from a relatively dormant period with an increase in construction activity in the residential sector, underlining its continuing popularity as a lifestyle destination. Construction activity in Juffair continues apace and there is little sign of demand slackening for residential property in that submarket. Also, with Water Bay at Bahrain Bay launched during 2015, real estate industry stakeholders will be following the project closely for market indicators and emerging trends within the capital.
Privately held Bin Faqeeh Real Estate Investment has invested $500 million in its current residential development portfolio of planned, under construction and completed real estate projects totalling over 1,700 apartments, penthouses and villas in Bahrain. Perhaps the most significant of these projects, underlining growing confidence in the residential sector in Bahrain, is the recently announced $53 million Water Bay. This is a three-tower project within Bahrain Bay that comprises approximately 600 high-end apartments and penthouses with ground floor retail. Prices for studio apartments are quoted as starting at around BD50,000. The diverse development portfolio also includes highprofile projects in Dilmunia Island, Durrat Marina, Juffair, Al Seef District and Sanabis.
February 2016 17
In profile
Big Project ME’s Gavin Davids sits down for a chat with Rahail Aslam, CEO of Select Group, to learn how the privately owned company has become one of Dubai’s most respected real estate developers
18 February 2016
In profile
“It’s a real passIng storm. thIngs are very turbulent and dynamIc at the moment [In the market]. so It’s a great tIme for you to capItalIse, If you’ve got the appetIte to Invest” February 2016 19
In profile
g
ood business leadership means you have to stay one step ahead of the market and the competition when it comes to making critical decisions about the future of your company. A CEO who second guesses himself when it comes to the crunch is of little use. Having the vision and strength of conviction to make the hard choices in moments of great stress is what sets the best apart from the rest. Those choices don’t have to be revolutionary or gamechanging. In fact, more often than not, it’s about having the confidence to trust the business strategy that you’ve put in place. Someone who knows more about this than most is the CEO of Dubai real estate developer Select Group. As the man behind some of Dubai Marina’s most high-profile projects, Rahail Aslam is well versed in making tough choices in turbulent times. With the company setting up shop in 2002, Aslam has overseen its growth as a luxury real estate developer through some of the most challenging market conditions Dubai has ever seen. Between 2005 and 2007, the company launched seven projects in Dubai Marina, starting with The Torch tower. Despite being firmly in the middle of the storm when the financial crisis hit, Select Group managed to deliver all the projects between 2009 and 2012, without any major delays. Although it’s been about four years since then and the company’s gone from strength to strength since, Aslam still remains proud of how the developer handled the 20 February 2016
Walk the talk Select Group doesn’t start a project unless it knows it has the money in place, says Rahail Aslam.
tough times, telling Big Project ME that it was down to strategic planning and keeping a sharp eye out for viable opportunities. One of the key aspects of its resilience during the crisis was the building up of a ‘land bank’ that it acquired during the downturn, which gave it a steady base to build on, literally and figuratively. In the wake of oil prices dropping and government spending slowing, many experts are now predicting that 2016 will be a tough year for the construction and real estate market, with projects likely to be delayed due to market conditions. Jones Lang LaSalle, the real estate consultancy, estimates that as much as 70% of the UAE’s pipeline real estate schemes scheduled for completion this year will fail to be delivered on time. As ominous as this may sound, Aslam has a somewhat different take on the market, especially in light of Select Group’s business for the coming year.
“The benefit of acquiring in this market is that, from a developer’s perspective, you’re in a buyer’s market and you can negotiate better terms. You can take your time and look for better parcels of land”
“Look, capital can be a coward. When there’s negative sentiment – and it’s not particular to Dubai – markets generally soften. You can see financial markets softening and commodity prices dropping. Since real estate is also a commodity, it has also suffered. “How does this affect Select Group? At the end of the day, our commitment is unwavering to Dubai. When we start a development here, we start with the intention of finishing it. What does this mean? It means that we put the finances into place so that we’re not subject to off-plan sales and so that we’re not subject to debt,” he explains in a conference room overlooking Dubai Marina. “We start a project knowing that the money is in place and that we’ll finish it. At the end of the day, our project’s average cycle, from inception to completion, is anything from three to four years. Anything that happens in between is somewhat irrelevant.” In fact, Aslam says that he prefers to view any potential slowdown as an opportunity for Select Group to do some shrewd business. Much like in 2008, the CEO says that the slowdown will allow the company to better negotiate with suppliers and procure higher quality materials at better prices. Not only is that good for current projects, but it also allows the developer to snap up opportunities that may be more complicated in better years. “It’s a real passing storm. Things are very turbulent and dynamic at the moment [in the market]. So it’s a great time for you to capitalise, if you’ve got the appetite to invest. Post 2008, we’ve been investing in real estate. In the last 12 months, we’ve acquired several pieces of land, which will now fall into the design and development stage. We’ll be able to bring some of these projects to the market by 2017, most probably.
In profile
JumEiRAh GROup tO mAnAGE mARinA GAtE tOwER Hotel operator Jumeirah Group has signed with Select Group to manage 508 units in the latter’s Marina Gate development in Dubai. Dubaibased Jumeirah will manage a tower within the Dubai Marina development, under its Jumeirah Living brand. The property, Jumeirah Living Marina Gate, is currently under construction and is scheduled to open in the fourth quarter of 2019. It will include 104 serviced apartments, 389 branded residences and 15 villas. Amenities will include an infinity pool, a two-level gymnasium, a residents’ lounge and a business centre. “Jumeirah Living perfectly complements our Marina Gate development by providing residents with an unmatched opportunity for a curated lifestyle within
“The benefit of acquiring in this market is that, number one, from a developer’s perspective, you’re in a buyer’s market and you can negotiate better terms. You can take your time and look for better parcels of land. Once you’ve done that, you can move on to procurement. “It’s a great time to be negotiating along the supply chain as well – so consultant, contractor and material procurement. That’s currently what we’re busy with. We’ve got ongoing projects that we’ve capitalised, and we’ve made investments for future development pipelines, but we’re planning and setting up the supply chain. “So all in all, I’d say that we’re in a very fortunate position and it’s a very interesting time.” In addition, Aslam has been adamant that the company expand its portfolio of offerings to the market. While residential real estate is still the primary focus, since 2009 the company has been exploring different avenues, primarily in the hospitality sector and in new
geographic locations, so as to have income-producing assets. “Residential development is a very cash-intensive business and there’s no immediate returns. Eventually, you’ll get your developer profit on it [but it could take years]. So we decided to diversify geographically and in our types of business. It’s still real estate, but we’ve gone into hospitality and income-producing assets. “We own InterContinental Dubai Marina, that’s wholly owned by the group and it’s fully an income-producing asset. We’ve also got a hotel in Birmingham – the Radisson, which is also fully owned by the group and is income-producing. “And we’ve got several hundred apartments in the UK in regional cities. All of them are producing income. So there’s no development per se, it’s pure asset management and recurring revenue. Therefore we’ve got geographic diversification, currency diversification, and it’s non-development related.
“On top of that, the hospitality element of the group is growing. We’ve just signed with the Jumeirah Group, we’ve got the InterContinental and we’ve got the Radisson. There are also plans to have another two hotels in the group before 2018. Diversification is in play every year, and we’re doing what our strategy says.” For the immediate future, however, the focus of the group will remain on current projects, especially one in particular – the massive Marina Gate project, which is set to be the company’s flagship project once complete. As previously described in the September 2015 issue of Big Project ME, Marina Gate is a $1.08 billion three-tower project that will consist of highend residential and retail, with a total built-up area of 371,612sqm. “You’ve got Marina Gate 1, 2 and 3. Marina Gate 1 is projected to complete in Q3 2017, and currently it’s on eight floors. It’s on time in terms of project delivery, and we monitor it on a weekly basis both in marina focus Dubai Marina will continue to be the focus for Select Group, for the near future at least.
Dubai Marina,” says Rahail Aslam, CEO of Select Group. Jumeirah currently operates 23 properties worldwide, including the Grosvenor House Apartments by Jumeirah Living in London and Jumeirah Living World Trade Centre Residence in Dubai. “We are delighted to bring our Jumeirah Living hospitality to the prestigious Marina Gate community,” says Gerald Lawless, president and group CEO at Jumeirah Group. “Marina Gate will appeal to residents looking for a truly distinctive lifestyle and is a fantastic addition to our global hospitality portfolio.” February 2016 21
In profile
terms of programme and progress. “As for Marina Gate 2, shoring and piling is complete. Excavation works is now ongoing and it’s scheduled for delivery in Q3 2018. There’s been no changes to that, at this stage of delivery. Marina Gate 3 has commenced construction as well, but we haven’t done any sales yet. However, our commitment is to deliver it in Q3 2019,” Aslam tells Big Project ME. Despite the success the developer has had in Dubai Marina, he does concede that it may become difficult in the future to continue focusing on the area, given the limited space available. However, he says that for the time being he’s content to focus on the area, for multiple reasons. “In terms of our focus on Dubai Marina, Emaar doesn’t develop here anymore, and there’s very little land parcels here, so there’s very little competition. If you look around, there’s hardly any new developers around. So we’re quite fortunate that we’re not dealing with too much competitiveness here. “[However], as I mentioned earlier, we’ve acquired land and we’re going to hit the mid-income bracket. We’ve got several projects in the design stage, and subject to market sentiment, we’ll bring those projects to market in late 2016 or early 2017. Needless to say, we’re designing those projects at the moment, and we’ll start construction and eventually bring them to sale. So we’ve got a strong pipeline to the future.” It’s because of this pipeline that Aslam says he will hold off on pushing Select Group into new territories and markets, despite the success of the group’s UK and European ventures (the developer has a property in Ciovo, Croatia). “Our plans are already embedded in what we already do. We’ve secured a future pipeline for Dubai, and in terms of entering other GCC markets, my view on that 22 February 2016
“Once you’ve made that commitment that you’re going to work together, you work towards that positive outcome. That means a continuous improvement model, that you unblock issues on a daily basis and you don’t let conflicts build up”
long-term future Aslam believes that developing long-term relationships with the construction supply chain is crucial for any developer’s success.
is two-fold. We’ve been in Dubai since 2002, doing real estate. There’s always a learning curve when you enter into any market and this place is no exception. We’re well established here, we’ve got a strong brand and a strong track record. “Now, if you export to other markets, you don’t get that same traction. So our view has been to focus on our key markets, which is Dubai and Europe. To be honest, there’s no intention of doing anything in the GCC at the moment.” The key to the company’s success, Aslam says, is the strong relationships it builds with the construction industry. Unusually for a developer, especially a private developer, Select Group prefers to work with a preferred list of consultants, contractors and subcontractors on projects. He explains that this comes from a desire to work with partners who are the best-inclass, but also because when it comes to working on large projects like the Marina Gate, it is pivotal to have a good supply chain that you know and trust.
“We make great efforts to work with the contractors and consultants before awarding the contract; we spend an exhaustive amount of time understanding each other’s requirements,” Aslam explains. “[That way] you also find out who’s going to work on the project [from the consultant and contractor]. That way you don’t have issues afterwards, from start to finish. “Once you’ve made that commitment that you’re going to work together, you work towards that positive outcome. That means a continuous improvement model, that you unblock issues on a daily basis and you don’t let conflicts build up.” Quite understandably, that sort of approach is welcomed by contractors and consultants, as it saves them from any issues further down the line. Given the success of this approach – and the contractors and consultants Big Project ME has spoken to have been unanimous in their praise for Select Group – it is easy to wonder why more developers don’t follow suit. “There are a lot of developers who get entangled in conflicts. It just slows the job down. Our view is that, whatever the issues are, bring them to the table, resolve them and then move on so that the project and relationships are not harmed,” Aslam asserts. “Then your interests are aligned, because a contractor wants to finish a job and the developer wants him to finish the job.” “And the next time around, when you’re building again, you’ve already established that working relationship and reputation. If you pay a contractor on time and if you deal with issues quickly and effectively, then they’re going to appreciate that, and the next time you want to float a job, maybe they’ll reflect that in the price,” he grins, bringing the interview to a close.
Project profile
Big Project ME gets a first look at the highly anticipated ICD Brookfield Place in DIFC, the first major project approved in the financial district since 2008
Like No ot 24 February 2016
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her PLace February 2016 25
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t
he Dubai International Financial Centre (DIFC) district is home to some of the city’s most prestigious and distinctive buildings, such as the instantly recognisable The Gate, which is situated at the entrance of the 110-acre space. Seemingly taking their cue from the landmark building, a number of internationally renowned architects and engineers have created structures that are visually stunning and also showcase Dubai as the financial hub of the Middle East. Complementing these impressive structures are highend restaurants, art galleries and retail outlets, along with the one hotel in the DIFC area – the Ritz-Carlton, a visually arresting five-star property reminiscent of the towering canyons of Wall Street in New York City. Given the exacting standards set by such a location, a new entrant into the DIFC has a considerable amount of measuring up to do, especially if it is the first construction project in the area since 2008. Luckily, the partners forming the joint venture ICD Brookfield, which will manage the ICD Brookfield Place mixed-use development, know a thing or two about setting the standard. The Investment Corporation of Dubai (ICD) is the principal investment arm of the Government of Dubai, while Brookfield Property Partners is one of the world’s largest commercial real estate companies, with more than $65 billion in total assets. Its projects include 26 February 2016
award-winning programmes in Brookfield Place New York, Toronto and Perth, Australia. Suffice to say, then, that the $1 billion project, which held its ground-breaking ceremony on January 20, is in very good hands. Designed by Foster + Partners, the development is a 53-storey tower with more than 83,612sqm of grade A office space, with an adjacent five-storey retail centre that offers 13,935sqm of best-inclass shopping, dining, fitness and private club facilities spread along multiple terraces, along with an open garden on the top level. The office tower and retail building will be connected by pedestrian walkways, while the development will also offer seven underground levels of car parking to accommodate 2,700 vehicles. Finally, the project will also feature a 31m high, 1,672sqm landscaped public area, framed by fine dining restaurants and a chef-driven food emporium. This aspect of the development will also showcase a range of arts and cultural events that are a feature of Brookfield Places around
contractor partnership The main contractor for the project is a joint venture between Brookfield Multiplex and Ssangyong Engineering and Construction.
ProjeCt DetaIls Height: 282.3m Office floors: 51 Total floors: 54 (Ground + 53) Below-grade car parking levels: 7 Net internal area (office): 87,146.5sqm Net internal area (retail): 12,764.8sqm Net internal area (total): 99,911.45sqm
aDDItIonal InFormatIon Three podium floors of 2,787sqm each Three executive floors on Levels 51, 52 and 53, with floor to ceiling height of 6.3m Podium floor to ceiling height of 3.5m Typical floor to ceiling height of 3m
the world. A new retail connection and public garden will link the food emporium and public realm at ICD Brookfield Place to the existing DIFC gate precinct, the joint venture partnership behind the project says in a statement. “ICD Brookfield Place is a truly inspirational building that will meet demand from the world’s leading corporations seeking a location in the heart of the city,” says Khalid Al Bakhit, chairman of ICD Brookfield. “The worldclass design combines office, retail and lifestyle offerings that will create a truly unique space, both inside and out, and position ICD Brookfield Place at the forefront for urban office design.” Grant Brooks, senior executive partner at Foster + Partners, adds that he believes the project will become a new social focus for Dubai, as it will combine world-class office space with a major civic plaza. “Our aim is to enhance the urban character of the DIFC, putting public spaces at the very heart of the design. The new office tower is also on target to achieve a LEED Gold
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Project planning The ICD Brookfield joint venture worked for years with the architect, Foster + Partners, to finalise the design of the building.
rating, and is shaped to reflect the sunlight. It is surrounded by a rich mix of easily accessible terraced spaces that will create a vibrant and lively extension to the DIFC,” Brooks explains. The British firm was appointed as architect for the ICD Brookfield Place project after it won an architectural competition between five architectural firms. The choice was made about 13 months before the ground-breaking ceremony, executives said. In addition, an internal design team from Brookfield worked closely with the architect for about 13 months, to ensure that they had a beautifully designed building that was also commercially efficient. With the ground-breaking ceremony completed, Big Project ME tracked down Douglas Kirkman, CEO of ICD Brookfield, for a quick chat about the impact of the project and how the team behind it is preparing a construction programme to ensure it will meet its 2018 completion date. “I think it’s important to note
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“At the main contractor level, the openbook process again ensures transparency and best pricing. But also, going down the design and build route has realistically saved us 12 months in total development time, and that’s critical” February 2016 27
Project profile
that the northern campus of the DIFC has almost a 0% vacancy rate, and there are large multinational tenants who continue to grow year over year, and they need expansion space,” says Kirkman. “So I think that the first thing this project is going to do is help the DIFC accommodate its tenants, who need space to grow.” “I think it also helps to begin the connection between the rest of the DIFC and the Southern End,” he adds, pointing out the development’s proximity to the likes of Burj Khalifa, Dubai Mall and the Dubai Fountain, which he believes will be an added attraction to corporates looking to set up shop in DIFC. “I think this is the best financial district throughout the Gulf, or even the Middle East and Africa for that matter. This project will continue to enhance that, even more so.” However, he remains mindful of the fact that there are exacting standards to live up to, and is quick to assert that with Brookfield’s name now formally attached to the project, the contractors, consultants and suppliers involved will be expected to be at the top of their game. “In order for Brookfield to put its name onto a project, the building requires a certain level of quality throughout the technical specification of the building, to the lifting of the building, to the MEP and loading of the building, and this project meets those quality criteria that we would stipulate.” This care and attention to detail is reflected in the time it took to get the project ready to break ground. Work on the joint venture began four years ago, with the first year spent working together to evaluate and consider the best and most interesting investment options in Dubai. “Speaking candidly, it took us almost a year to decide that 28 February 2016
this would be a very interesting investment opportunity. The overall average vacancy rate for all office space throughout Dubai was sitting at north of 25%. When the total market has that level of vacancy, it takes a bit of time to get investors comfortable with the fact that it would be a good idea to develop 83,612sqm of office facilities into what could be seen as an oversupplied market. “But that missed the real point, which was that while the overall market may have that level of vacancy, the submarket that is the DIFC does not. The N] northern campus of the DIFC has pretty much zero vacancy, while the total DIFC lies at less than 10%,” he explains. Groundwork has begun on the site, with an early works package for hoarding, excavation, dewatering and shoring and piling handed to Swiss-Boring. Ahead of construction work commencing, a joint venture between Brookfield Multiplex and South Korean contractor Ssangyong Engineering and Construction has been
Groundworks contractor Swiss-Boring is handling the piling and shoring for the project.
“It’s important to note that the northern campus of the DIFC has almost a 0% vacancy rate, and there are large multinational tenants who continue to grow year over year, and they need expansion space”
appointed as main contractor. “Both main contractors have significant experience here in Dubai,” says Kirkman. “Actually, they were the two contractors who built the Emirates Financial Towers. In addition, Brookfield Multiplex built The Gate and adjacent buildings. They probably have the most depth of experience in high-rise towers within Dubai, and that’s very important. “Also, one of the points that was critical to the ICD Brookfield joint venture was time to completion. After going through a very long procurement strategy analysis, we decided that the best way to complete the project quickly was to go through an open-book negotiation, with design and build main contractors,” he says. The next step in the process will be the tendering of the subcontracts for the project, with Kirkman explaining that the main contractors will be required to involve no fewer than four companies for each tender released. In fact, some tenders will have as many as eight companies
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Project profile
Minimal disturbance The construction team, led by AECOM, will be working to ensure that neighbouring buildings’ occupants won’t be disturbed by construction.
applying for certain contracts. This approach brings with it some additional benefits, he asserts. “Because of the tendering and the subcontracts, [having design and build main contractors] still gives us strong price transparency across 85% of the contract. As for the remaining, at the main contractor level, the open-book process again ensures transparency and best pricing. But also, going down the design and build route has realistically saved us 12 months in total development time, and that’s critical because it meant that it became a three-year process, which will be advantageous to the owners and the joint leasing agents [Jones Lang LaSalle and CBRE] of the company.” “It means that it becomes a three-year process rather than a four-year process, and it’s in a market where quite a few of the leases are for three years. This works perfectly for talking to potential tenants today, while having it ready in four years would have also been a problem. “The end of 2018 [is the 30 February 2016
“The worldclass design combines office, retail and lifestyle offerings that will create a truly unique space, both inside and out, and position ICD Brookfield Place at the forefront for urban office design”
scheduled completed construction date]. Just knowing how construction works, there’s definitely programme and construction milestones. Our cost consultant and project manager, which is AECOM, will be overseeing on a daily basis. They’re the main line of defence for us as investors to make sure that timeline is being adhered to,” Kirkman says. With an expected 2,500 workers on-site at peak construction, having such safeguards in place will be vital for the successful completion of the project, especially given the congested area in which the site lies. Situated on Al Sa’ada Street, the ICD Brookfield Place site is bordered by the fivestar Ritz-Carlton DIFC and Al Fattan Currency House, which means planning and logistics will need to be spot-on. While Kirkman is no expert on construction logistics, he’s confident that the construction leadership team of AECOM, Brookfield Multiplex and Ssangyong will be able to effectively manage the on-site logistics with minimal disturbance
to neighbouring occupants. “We’ll work very carefully and with sensitivity to our surroundings, and to all our neighbours. The site is obviously very close to Mr Al Fattan’s building, so we’re going to have to make sure that we don’t disturb tenants. I live in the Ritz-Carlton as well, which is right behind the site, so rest assured, if there are any problems, I’ll be feeling them as much as anyone else!” As the interview comes to a close, Kirkman makes a point of highlighting the role played by an entity that might be dubbed a silent partner in the entire enterprise, without whom this massive and distinctive project wouldn’t have even got off the ground. “The DIFC has been an invaluable partner in helping this project come to fruition. We’ve already reached an agreement with them to have a laydown area immediately adjacent to the site during the early works package for the project. [I have to say] they’ve been incredibly helpful and flexible in dealing with these sorts of issues,” he concludes.
FIRE SAFETY & BUILDING SECURITY REPORT Next month, Big Project ME takes an in-depth look at the GCC’s fire and life-safety industry for the 2016 Fire Safety and Building Security Report. Some of the topics we’ll cover are: How to engineer buildings for fire safety Fire safety and green building Procuring appropriately rated firesafe materials Developing fire-safety on site Developing the fire codes in the GCC Designing safety into buildings in an unobtrusive manner Creating intuitive security systems in buildings Developing a city-wide security grid If you would like to participate, contact: ADVERTISING Faaju AbdulFatah, Sales Manager +971 56 674 5757 faaju.abdulfatah@cpimediagroup.com EDITORIAL Gavin Davids, Editor +971 4 375 5480 gavin.davids@cpimediagroup.com
A supplement of:
Rail construction
32 February 2016
Rail construction
FULL SPEED AHEAD
As rail projects make rapid headway across the GCC, Jerusha Sequeira examines why railway investment is crucial for the region and looks at technological advances in the sector
February 2016 33
Rail construction
W ith rapidly rising numbers of cars on the roads, GCC states are all too aware of the need to invest in transport infrastructure and specifically public transport, which can tackle pollution, reduce road congestion and create jobs. As one of the most energyefficient means of transportation, railways are a natural solution to many of the transport issues faced by bustling cities. Rail is responsible for only 3.3% of CO2 emissions in transport while carrying 9% of global passengers and freight, according to the International Union of Railways (UIC). The Middle East is now among the world’s most promising regions for the development of railways. Investments in rail infrastructure are gaining steady traction, spurred on by ambitious projects like Etihad Rail in the UAE and the Riyadh Metro in Saudi Arabia.
Apart from the environmental benefits of an integrated rail transport system, rail infrastructure also has a significant socioeconomic impact, experts say. “The biggest impact of the passenger railway is likely to be social and cultural, because it will enable cheaper, regular, efficient transportation to centres which are currently relatively inaccessible,” says Adrian Lindon, director – Rail at Atkins. “In this respect it will be a unifying force for the region because of the way it will open up borders and improve accessibility, while also drawing people away from their cars.” By reducing the reliance on personal vehicles, rail has the potential to reduce traffic congestion, notes Brendan Young, technical director – head of Rail at WSP | Parsons Brinckerhoff Middle East. It also boosts the economy, he adds. “Rail is a great catalyst for economic development, which happens both directly and indirectly. Directly, it creates jobs during project development, and during the operations and maintenance.” In the construction phase,
Economic catalyst Rail construction will be a catalyst for economic development, Brendan Young says.
“We’re seeing in Doha and Riyadh that the local contractors are becoming very mature very quickly and they’re able to demonstrate that experience. That’s great for the local industry” Reducing congestion City-wide metros and tramways have the potential to reduce traffic congestion.
34 February 2016
civil engineers, project engineers and operations and construction managers are likely to be in high demand, says Niall Hughes, senior consultant – Construction at the recruitment firm Morgan McKinley. Once the rail infrastructure is established, roles directly within railways as well as positions in logistics, customer service, IT and management can be expected. “Indirectly, the rail developments should transform the face of logistics in the region, making the flow of goods much easier between GCC countries, which should in turn attract companies and manufacturers to the region, stimulating further trade and job creation. As the passenger service comes online, the labour market will be less restricted by location so, for example, the commute time from Abu Dhabi to Dubai will reduce significantly.” Given the potential benefits, there is a definite commitment from GCC states to developing rail infrastructure, Young says. This is clearly illustrated by the ambitious GCC Rail project, as well as the progress by member states on metro lines in cities. The most striking example of how successful rail can be in the region is no doubt the Dubai Metro, which carried a staggering 178.7 million riders last year, according to the emirate’s Roads and Transport Authority (RTA). Alongside plans to expand the metro network, the UAE is also making rapid progress on the $11 billion Etihad Rail network. In December, the rail operator was given the green light to begin commercial operations on the first phase, the 264km ShahHabshan-Ruwais line. The first stage of the 1,200km network will transport sulphur from Shah and Habshan to the port of Ruwais on two daily trains, state news agency WAM reported.
Rail construction
BuildinG expertiSe: pAvinG the wAy for rAil tAlent With rail projects soon to become a reality in the region, local talent will be required for operations and maintenance, as well as future expansion. In line with the need for skills development, Saudi officials have said that they will look to establish an academy to provide specialised training in rail for school graduates and professionals, the first of its kind in the region, Hughes says. Rail infrastructure projects can also create
Qatar rail plans progress By 2030, all three of Qatar’s rail networks are expected to be completed and fully operational.
opportunities for universities in the region to tailor-make courses for the rail sector. With the current oil price scenario, there may be uncertainty around whether regional governments will still be willing to hire as much. The UAE’s Etihad Rail was recently in the news for cutting a third of its workforce as part of a restructuring initiative. Lindon also notes there might be some uncertainty, though it could be positive for the projects themselves. “No governments are immune to the impact of economic forces, so it’s reasonable to assume that sensible questions will be asked about the viability, phasing and timescales of some projects.” “This can also be positive, because it provides an opportunity to make sure that what is being planned is really valid, while encouraging designers to be really innovative in order to drive value throughout the lifecycle of projects.”
Meanwhile, in Saudi Arabia, the Riyadh Metro project is “progressing very well”, Lindon notes. Atkins is part of the FAST Consortium, tasked with building three of the six lines of the Riyadh Metro network. The other members of the consortium are FCC, Samsung C&T, Alstom, Strukton, Freyssinet Saudi Arabia, Typsa and Setec. “Riyadh Metro’s success is a great tribute to both the leadership of the client and the maturity of the region’s rail sector. It’s hard to believe that the region’s first metro system only opened in 2009, so the quality and consistency of what is being delivered on a project as vast as Riyadh Metro is fantastic,” he says. Qatar is also making steady progress, announcing a slew of contracts last month for its rail network, which will comprise Doha Metro, Lusail Tram and a long-distance train. The first phase of the Doha Metro project is expected to be completed in the fourth quarter of 2019, while completion of the
Lusail Tram is set for 2020. By 2030, all three networks – Doha Metro, Lusail Tram and the long-distance rail, which will link Qatar with the GCC Rail network – are expected to be complete. With the completion of the first phase of the Doha Metro and Lusail Tram, Qatar Rail expects to offer 600,000 passenger trips per day by 2021. With the large investment channelled into building rail networks, it’s reasonable to expect the very best from the projects, in terms of technology, security and efficiency. Globally too, progress is being made in leaps and bounds towards making railways smarter, experts agree. One area in which significant technological advances are being made is tunnelling, Lindon says. “We’re seeing the use of increasingly sophisticated tunnel boring machines which are enabling safer and more effective tunnelling in difficult ground conditions. New types of concrete and reinforcement are both cost-effective and less impactful on the environment, which is a fantastic combination.”
This is especially important under buildings and built infrastructure, he says. Looking ahead, Lindon expects the Middle East to be among the forerunners in adopting new ideas. “For instance, there’s potential to use tunnel linings or building foundations to create a latent heat exchange which will generate energy and enable efficient cooling.” Another aspect developing rapidly is signalling, Young says. WSP | Parsons Brinckerhoff is heavily involved in helping clients in Europe and North America upgrade their signalling systems and make them computerbased. “It’s effectively the train talking to the track at that particular point in time along the line, so it’s using real-time information to dictate how fast the train is going and so on.” Also gaining traction is communications-based train control (CBTC), which detects and prevents collisions better than traditional signalling systems. “It allows trains to travel closer together so they February 2016 35
Rail construction
can get more capacity out of the railway. In the future in terms of rail investment, that’s what [clients] will be looking for.” Clients also increasingly demand efficiency, with nearly all of them looking for improved sustainability from an operational point of view, Young says. This can pose a challenge to contractors as they have to source and use the right materials, but ultimately the owner of the asset stands to benefit from reduced energy use. Ways to improve the sustainability of railways, particularly in stations, include improvements to HVAC systems and harnessing renewable energy like solar on stations. WSP | Parsons Brinckerhoff carries out sustainable building modelling to see where inefficiencies in the design can be tackled to reduce energy demand, for instance in the air conditioning. Interestingly, design can also play a crucial role in contributing towards greater security of rail and metro stations through a ‘security by design’ approach, Young points out. This means that rather than solely relying on active surveillance such as CCTV systems or guards, a station can be designed to enable passive surveillance, so that passengers
can observe their surroundings for suspicious activity. One way this can be done is by ensuring there are fewer hidden nooks and crannies in the building. On account of the numerous stakeholders involved, executing a rail project brings a fair share of challenges from a project management perspective. Rail projects typically involve the integration of several different disciplines, says Young. This is because rail projects have several elements, such as the civil works aspect, which includes tunnelling, track-laying and stations, and the systems element, which includes signalling and communication systems and the operations control centre. “What happens in a design process is the civil designer does the civil design, and a systems designer does the systems design. The important thing is to make sure that those two designs are talking to each other, so that they are well integrated by the time they actually get built.” To ensure the success of rail projects in the region, stakeholder management is key, he adds, and constant communication and management of all stakeholders, both external and internal, is essential. “We actively manage
AlStom lookS to mAximiSe effiCienCy Alstom is working on upgrading components for greater efficiency. Examples include HVAC systems that detect the presence of passengers in the train and adapt air flow to occupancy, and lighting systems which use almost exclusively high-efficiency LEDs. Alstom has also developed more efficient signalling solutions, like the Urbalis Fluence for metros, which provides automatic control of train movement, delivering up to 20% energy savings. This is achieved through reduced intervals between trains and a reduction in maintenance, with a 20% cut in equipment. Moreover, progress is being made on the maintenance front, including through a predictive maintenance tool called HealthHub which allows operators to check the status of equipment and use data analysis tools to anticipate remaining life. The monitoring systems make it possible to automatically determine the status of rolling stock, infrastructure and signalling, and to identify any components that need to be repaired or changed. Meanwhile, TrainTracer technology enables preventive and corrective maintenance operations to be anticipated, reducing train immobilisation times by up to 30%. This is done by continuously monitoring data on the status and wear of the main train components – traction systems, ventilation and so on.
36 February 2016
our project stakeholders using detailed tracking schedules, and we keep our clients up to date on how we’re progressing with each of those stakeholders.” Lindon echoes the importance of communication between different participants. “In any partnership, which for us will typically be with JV contractor clients, you need exceptional communication, adaptability and responsiveness, because the working environment is extremely dynamic. An essential part of our delivery model is the ability to draw on expertise from our design centres across the world, and this enables us to flex resources as needed despite the fact that rail skills are massively constrained globally.” A lack of local rail expertise is another issue ¬– the GCC had never had a major rail project prior to the Dubai Metro. However, Young notes that local contractors, who generally come on-board for civil works such as tunnelling and utility and road diversions, are more than up to the task. “We’re seeing in Doha and Riyadh that the local contractors are becoming very mature very quickly and they’re able to demonstrate that experience. That’s great for the local industry.” Growing maturity Local contractors in Doha and Riyadh are becoming very mature very quickly when it comes to railway construction.
Comment
Barny Evans
RENEWABLE ENERGY – THE WORLD NEEDS A BIG CHANGE Our energy systems are in the foothills of a revolution that will change the way we do business and the way we live, even those of us not working in the energy sector. WSP | Parsons Brinckerhoff renewable expert Barny Evans says the Middle East is likely to experience this more than most We are moving to a future where the majority of our power comes from renewable sources and our transport and buildings become fully electrified; but we are also moving to a future where supply and demand become blurred, with self-generation growing. For most regions, this will have many benefits: less need to import oil and gas, better air quality, much lower CO2 emissions, reduced energy bills and the creation of intelligent 38 February 2016
networks that are much more efficient. For the Middle East, with high levels of solar power available, the benefits may be even greater, but there will also be the challenge of the fact that demand for oil and gas is likely to fall greatly. Solar power is already in a position where it is costeffective to deploy per unit of power produced against fossil fuel options, but solar and other intermittent renewables
have for too long acted like irresponsible teenagers, taking credit for producing power whenever they want but not taking responsibility for the fact that our power networks are not like bank accounts where you can just pay in how much power you need over the year; they are actually like see-saws, where you balance supply and demand minute by minute and too much power supply is as much a problem as too much demand.
In most countries, the level of deployment to date means we can get away with largely ignoring the problem. That is becoming untenable. Germany already is dealing with some of the problems around this, and some other jurisdictions are suggesting that intermittent renewables should pay for the additional costs of maintaining stand-by generation and balancing costs. Against this backdrop, power storage is like a white knight on
Comment
Looking at the sun Solar power could provide between 80% and 90% of an equatorial country’s power.
“This new future requires enormous levels of investment and engineering, but it will happen”
a shining steed galloping to the rescue. Power storage means that renewable power produced when we don’t need it can be held, to be used later when we do need it. Essentially, it allows a system to become more like a bank account and less like a seesaw, though balancing demand and supply is still important. In Britain and countries in similar latitudes, solar power, even with power storage, is unlikely to provide more than
around 10% of power for the foreseeable future, but as you approach the equator and the days and seasons become more uniform, solar power linked to storage – and demand management – could provide 80-90% of a country’s power. We have already undertaken an analysis for a development in tropical Africa where solar and power storage was considered as an option against standard diesel generators, and the lifetime costs
are already similar. A particular opportunity for the Middle East lies in the fact that power demand is broadly proportional to solar power generation, which reduces the need for storage. The parallels between power storage and solar power are obvious, be that batteries, flywheels, compressed air, hydrogen or whatever. Today, power storage is very expensive and not really deployable on a grid scale. You could have said the same about solar power as little as ten years ago. Like solar, the level of human and financial capital being invested in power storage is enormous, and the potential for economies of scale, narrowing of focus on winning technology, standardisation and governments putting in place the incentives and structures to allow it are just as big. This new future requires enormous levels of investment and engineering, but it will happen. There is still some denial; for example, the most recent OPEC report on the future of oil suggests that in 2040 electric vehicles will represent only 6% of the global fleet, which seems unlikely, with the IEA projecting around 30%. Oil consumption in vehicles is likely to start to decline more rapidly than that, and of course at the same time there will be a resulting rise in electrical consumption. The UAE and other Gulf countries in particular will need to plan for this, as they will be affected by both declining oil demand and increased electrical demand. In summary, the future is incredibly exciting, but companies like WSP | Parsons Brinckerhoff need to ensure we are preparing our clients – be they governments or other companies – for the challenges ahead, to ensure we fully grasp the benefits. February 2016 39
Energy conservation
Flicking the switch
Big Project ME chats with Lutron Electronics’ Michael Pessina, cochief executive officer, and Ramin Mehrganpour, senior vice-president, about changing attitudes towards energy conservation and tapping into the rapidly growing green building market in the Middle East 40 February 2016
As green building codes and energy efficiency continue to dominate the conversation in the construction industry, a number of manufacturers and suppliers are looking to tap into a rapidly growing market, while also striving to educate clients and project partners about the benefits they can bring to the table.
At the forefront of this intriguing new frontier is US firm Lutron Electronics, a 55-year-old company that first broke into the lighting control market when founder Joel Spira invented the first ever solidstate dimmer, which went on to become a viable alternative to
the traditional light switch. After going from strength to strength over the last half century, the company is now looking to strengthen its presence in the Middle East market. Having successfully established itself as one of the leading manufacturers of lighting controls and automated window-covering systems in the world, Lutron is determined to do the same in the GCC, following nearly two decades of operation in the region. The stated aim is to double regional revenues over the next three years, while also doubling staff at its regional headquarters in Dubai. With
Energy conservation
specifically leD It is increasingly common for lighting designers and consultants to specify LED technology for their projects.
its core business segment being hospitality, there are tremendous opportunities available, especially in the UAE, Qatar and Saudi Arabia, all ramping up their hospitality offerings. Big Project ME sat down with Michael Pessina, cochief executive officer and company president, and Ramin Mehrganpour, senior vicepresident, to discuss how Lutron Electronics will position itself to take advantage of the burgeoning building energy conservation market and how it will work with the construction industry to deliver products that are intuitive, automated and energy-efficient.
“What I see in the Middle East, and in other areas around the world, is that the specifying community of mechanical and electrical engineers, lighting engineers and architects are all much more conscious of energy conservation,” says Pessina. “They’ve always had it in their designs, but they’re much more conscious of it now. We were just out with lighting designers the other night, and they told us that they’re specifying virtually all types of LED technology, throughout all their projects.” “So why do you put LED technology into place? You do it for several basic reasons, but one reason is certainly energy efficiency. They’re very efficacious sources that can approach 75 to 100 lumens per watt, and also they give very good light. So that’s an indication of a lot more consciousness in terms of energy conservation.” This is where Lutron believes it can take advantage of a changing marketplace. Having developed strong relationships within the construction industry and worked with architects, engineers and contractors, Lutron’s teams have been able to spread the word about how their products and systems match up to the green needs of the industry. “We’re one of the leading members of green building councils all over the world, whether it’s in Southeast Asia, South America, the USA or even the Middle East, where it’s a very new concept,” says Ramin Mehrganpour. “We’re a leader in this organisation, and we help a lot of owners and developers. Our job is to educate the market, and we’ve been leading these efforts by helping our clients and customers regarding the benefits of energy efficiency.” “We absolutely do create a
increased consciousness Michael Pessina says that he sees a construction industry that is more conscious of energy conservation.
“If subsidies go away, it’s obviously going to affect the price of oil and gas and that’s going to impact the day-to-day lives of people, and they’re going to ask, ‘What are the ways in which we can optimise and impact our lives, and perhaps save energy?’” dialogue with architects and designers. We act more as a consultant – an advisor – to them. Our job is to tell them what we see and what we think the future will bring. It’s to listen to their issues and what they need to resolve, and then give them something that exceeds their expectations, which in turn means exceeding the expectations of our customers and end users.”
This commitment to customers is expected to result in increased revenue and sales, both executives say, with the stated aim of doubling revenue within the next three years a benchmark rather than just a target. “We’re doing that by continuously introducing more energy-efficient products in commercial spaces, which is going to help with reducing energy but also continues to develop lower costs of operation,” says Mehrganpour. “One of our main initiatives in the Middle East is going to be introducing into the guest rooms of the hospitality business segment a product known as myRoom. This is one of the leading products in the world, as far as technology and aesthetics are concerned.” Lutron hopes myRoom will really cement it as a market leader in the region. With the hospitality boom likely to occupy much of the construction industry’s interest, there is an opening in the market which the company hopes to exploit, as Pessina explains. “We’ve always been very strong in hospitality, but with myRoom, we realised that we could offer several things. To make things simple is very hard to do. So we have a very simple control technology, with buttons that say ‘Good Night’ and ‘Welcome’, but the other thing that we’ve tried to do with this is to make things automated. “So for the key locks, when you activate the key, the lights come on, the draperies open and the temperature – which can be activated from the front desk by management – adjusts when you enter the room. The goal here is to save energy in the space, but also to do so in an effortless way for the consumer,” he says, pointing out that this ties in perfectly with most hoteliers’ desires for their guests.
February 2016 41
Energy conservation
“The last thing you want to do is tax guests with anything to do, other than enjoy themselves. We’ve worked with leading brands in the hotel market to develop this technology, seamlessly work the door lock systems and [provide] property management.” The company works closely with architects and engineers, and both executives agree that educating that segment of the industry about Lutron’s offerings will be crucial to its success in the Middle East. In fact, Mehrganpour points out that a lack of awareness in certain markets about the benefits of energy conservation is perhaps the biggest challenge the company will face as it looks to spread its reach through the region. “Specifically about Saudi Arabia and the UAE, I do believe that there is a lack of awareness till now of energy efficiency and conservation, perhaps because the cost of energy was so low. Nonetheless, the current dynamic of the world economy, with the cost of oil going down and a lot of subsidies going away, that is going to affect people’s normal lives. “If subsidies go away, it’s obviously going to affect the price of oil and gas and that’s going
government responsibility Ramin Mehrganpour says governments are now taking charge of energy-saving efforts.
“We absolutely do create a dialogue with architects and designers. We act more as a consultant – an advisor – to them. Our job is to tell them what we see and what we think the future will bring” UAe goes green The UAE is the GCC country doing the most to embrace green technology.
42 February 2016
to impact the day-to-day lives of people, and they’re going to ask, ‘What are the ways in which we can optimise and impact our lives, and perhaps save energy?’” However, he is quick to add that governments around the world have the responsibility to talk about saving energy, not only from a cost standpoint but because “it’s the right thing to do”. “I do see that in the UAE, more so than anywhere else in the region. We’re seeing a lot of discussion about being greener. I’m very happy with the steps that are being taken, because they’re focused on building a whole city with zero carbon emissions. It’s very promising for the region, but it’s years away from where the Western world is at, for obvious reasons. But I do believe that they’re making good headway at this point.” Talking about the future of energy conservation is something that animates Michael Pessina quite considerably. Having outlined the plans for the company and the challenges it faces when it comes to using its products to spread the green message, he’s keen to stress that Lutron won’t be holding back on evolving and enhancing the technology.
“We’ve been very successful with high-end residential, but we see that moving towards more of a mass market. What’s making that happen is smartphones, and the fact that the internet is all around us. We were one of the first companies that worked with Apple for an app for the Apple Watch,” he says. “The connected home is occurring. Lutron was at the Consumer Electronics Show in Las Vegas, Nevada, and I spoke on several panels on the connected home. This is a very important direction in terms of promulgating smart devices in the home. We think it’s very important that these devices are reliable and work for the consumer, and we definitely think that it’s got great promise.” With 10% of global sales invested in research and development, it’s clear that Lutron remains committed to pushing the boundaries of what’s possible. With the Middle East market only set to increase in prominence for the company, it’s just a matter of time before more and more energy conservation products make their way to designers and clients in the region.
global change The current dynamics of the world economy means that the general population will be looking for ways to optimise energy use.
Industry focus
Why do projects fail?
Ahmed Mohamed Hassan explains some of the common mistakes made by clients and contractors which lead to the failure of construction projects in the Middle East
44 February 2016
The reason that construction projects fail is an oft-repeated discussion among construction professionals in the Middle East. Following extensive discussions and an informal survey with colleagues and friends working on a number of projects in the GCC, it was relatively easy to whittle down the many reasons why projects fail to a list of some common mistakes made by both client and contractor. First of all, it’s important to remember that construction projects fail due to a lack of good planning. The other reasons, we’ve divided into two categories:
Causes related to owners: • Scope issues: Neither project nor product scope fully address organisational business requirements. Also, owners are often not aware of the project requirements or what exactly they need. • Communication issues: Poor and inefficient communication between project owner and other stakeholders on a project can often cause significant delays and deadlocks. • Determining long lead items: A lack of interest in determining long lead items can cause a number of
Industry focus
conflicts in a construction project’s schedule and budget. • An inexperienced or under-qualified project team: If a project team lacks the appropriate skills and expertise to manage a project, then the project is going to fail. A client cannot afford to appoint a project team based on personal relationships, rather than making a decision based on competence and experience. • Poor estimates: Problems occur on a project when clients have project estimates that are incomplete or have insufficient
detail for proper budgeting. • Relationship between project budgets and plan: One of the major causes of failure is the project’s business requirements not being aligned with the budgets and execution plan. • Incomplete designs: A common factor in the failure of a project is construction work starting before the design is complete and finalised. • Lack of risk management: Another major issue halting the success of a project is when owners do not fully understand the
Unrealistic schedules Compressed construction schedules and unrealistic targets are two of the main causes of project failure.
risks associated with the construction schedule, leading to a failure to prepare for any complications that may arise. • Unrealistic schedules: Project delays during the planning, design and approval stages often result in compressed construction schedule milestones and unrealistic completion targets set by an unaware management. Causes related to contractors: • Scope creep and gold plating: This is when some extra functions are added, with the changes not explicitly stated in the scope statement for the construction project. • Poor estimates: Problems occur when contractors put in overly optimistic bids with poor or outdated data, missed scope items and flawed assumptions regarding regulatory issues, constructability, or labour and the price escalation of materials. • Turnover: Turnover during a construction project can have a negative impact on the team and the project. • Resource shortages and an inexperienced or unqualified project team: When there is a lack of available craft or staff labour, leading to the use of inexperienced field supervisory personnel, or a lack of qualified and experienced project management team members, a construction project will most likely fail. • Unfavourable contracts: Construction contracts favour owners in areas such as payment terms, change order pricing, reimbursement of general conditions, overhead and profits/fees, and negotiations with project
owners. This adds up to a challenging environment for a contractor, with penalties for non-performance. • Lack of support from senior management: A project will fail when there is a lack of support from senior management in addressing key project issues and challenges in a timely manner. Having the support of senior management is also crucial when it comes to managing key communications and negotiations with the owner. • Design issues: Project design issues tend to lead to inefficiencies, unrecoverable cost overruns and schedule delays, which can all have a catastrophic impact on a construction project. • Coordination issues: As most contractors will tell you, a lack of coordination with subcontractors and suppliers can have disastrous effects on any construction project. • An overly aggressive schedule: An overly aggressive schedule can lead to inefficiencies in the field, which in turn will lead to unrecoverable overtime and premium time. • Lack of risk management to address unforeseen conditions: There is often a lack of proactive risk management techniques to identify and address project issues and risks, which in turn leads to huge problems for the contractor should something go wrong. Note: All of the above points have been compiled from an informal survey conducted by the author, of construction professionals working on projects in Saudi Arabia, Egypt, Qatar and the UAE. The views expressed are entirely the author’s own.
February 2016 45
Time&money
Helping you make the smartest decisions Universal certification Kingspan’s insulated panel systems have received universal certification to LPS 1181:EXT-B.
TAMING THE FLAMES
Big Project ME speaks to Kingspan to find out how their QuadCore Technology products offer superior fire performance compared to their rivals
46 February 2016
Major fires in landmark buildings have far-reaching consequences. Beyond the terrible risk of loss of life and obvious cost implications, a major fire can irreparably damage the reputation of the architect, owner and occupier of a building.
That is why it is so important to specify the right products whatever the building type, insisting on certified fire safety without compromising on performance, speed of build and availability; and avoiding the costly risks associated with inferior product substitution. Kingspan’s insulated building envelope cladding solutions contain a thermosetting core, which offers vastly superior fire performance over thermoplastic materials. They have an extensive range of fire certifications to help meet and exceed current UAE regulatory
standards for fire performance. This superior fire performance, combined with the other benefits of Kingspan systems, enables high-performance buildings to be constructed safely and more rapidly than other construction methods. Each Kingspan system is underpinned by extensive, market-leading guarantees, and supported by expert advice at every stage. Once built, buildings utilising Kingspan cladding cost far less to operate than typical constructions, offering enormous financial savings to occupiers in the short- and long-term, and enabling higher levels of green building certification. Many building owners and operators in Dubai are already benefitting from Kingspan’s expertise on landmark projects,
including new commercial facilities for Aramex, DHL and Emirates Group, Dubai Parks, the Emirates Golf Club, Dubai Metro and, further afield, Hamad International Airport in Doha. To meet the growing demand for superior building envelope solutions in the region, Kingspan is investing over AED50m (US$15.7m) in its Dubai manufacturing plant. Central to the upgrade is the addition of a new production line for IPNQuadCore, Kingspan’s gamechanging hybrid insulation core. IPN-QuadCore will offer even higher standards for fire, thermal and environmental performance, and service, outperforming all other insulation technologies on the market. This breakthrough insulation core has been rigorously tested by recognised third parties and is expected to achieve the highest industry certification standards. IPN-QuadCore forms an exceptionally stable char on exposure to fire. The result is lower smoke emissions and better performance in reaction to fire and fire resistance tests. This means that insulated panel systems featuring IPN-QuadCore can comply with and exceed current UAE regulatory requirements. In the event of a fire, you can be sure IPN-QuadCore will deliver the highest levels of protection to both people and property. The Dubai plant is expected to begin producing IPNQuadCore later this year, with full certification following soon after.
“Buildings using Kingspan cladding cost far less to operate than typical constructions, offering enormous financial savings to occupiers in the short and long term, and enabling higher levels of green building certification”
to comply with both property insurers’ and fire regulators requirements. Details of specific system testing and approvals are available from Kingspan. Insurer-approved Loss Prevention Certification Board (LPCB) and Factory Mutual (FM) systems are prized by investors, property insurers, designers and constructors for their superior fire engineered performance. In order to achieve compliance, the Kingspan systems ensure that no flash over or fire propagation occurs and no flame spread occurs within the panel core. The roof and wall systems are also secured to the main/ secondary frame of the building in order to protect fire fighters. IPN-QuadCore is the first and only high performance closed cell insulation material to be certified to FM 4882 for use in smoke sensitive occupancies. This means that insulated panels using the IPN-Quadcore product can now be used for applications where there are products stored or
manufactured that are sensitive to the smoke that can be generated by a fire, opening up opportunities for the product with pharmaceuticals, data centres, electronic and high value food sectors. It also achieves a reaction to fire classification of B-s1, d0 to EN 13501-1, the lowest smoke emission category in the European Euro-classification system.. IPN-QuadCore panels can also achieve fire resistance of up to one hour insulation and three hours integrity to EN 13501-2, meaning it meets or surpasses all previous fire tests achieved by PIR core panels. This improved fire resistance performance means that specific IPN-QuadCore panels systems can be installed in a wider range of spanning widths, up to 7m in some LPS 1208 specifications and up to 12m in certain specifications according to EN 13501-2. Details for specific systems can be obtained from Kingspan. To get in touch with Kingspan, please visit www.kingspanpanels.ae Meeting demand In order to meet growing demand, Kingspan will invest $15.7m in its Dubai manufacturing plant.
Kingspan system fire certifications
Kingspan’s FIREsafe systems have been tested and approved to a range of internationally recognised standards including the Loss Prevention Certification Board (LPCB), Factory Mutual (FM), BS 8414 and BS 476 Part 22 standards
February 2016 47
Tenders
Top tenders The Avenues RiyAdh Mixed-use PRojecT Budget $2,000,000,000 Project number WPR823-SA Territory Riyadh, Saudi Arabia client Shumool Real Estate (Saudi Arabia) Phone (+966-11) 229 1166 Fax (+966-11) 229 1137 email info@shumool.com.sa Website www.shumool.com.sa description Construction of a 1.7 million sqm shopping mall, including a number of towers comprising a five-star and four-star hotel, residential apartments, offices and parking for 14,000 vehicles. Period 2019 status New Tender Tender categories Leisure & Entertainment, Prestige Buildings, Construction & Contracting, Hotels Tender Products Commercial Buildings, Hotel Construction, Residential Buildings, Retail Developments
Procurement and Construction (EPC) contract for the expansion of an existing oil refinery to increase production capacity from 100,000 barrels a day (b/d) to 160,000 b/d. status Current Project Tender categories Gas Processing & Distribution, Oilfields & Refineries Tender Products Refinery, Offsites & Utilities
Dilmunia Health Island scheme involving construction of a health resort and specialist hospitals. Period 2015 status New Tender Tender categories Construction & Contracting, Hotels, Leisure & Entertainment, Marine Eng, Works & Seaports, Medical & Healthcare Tender Products Hospital Construction, Hotel Construction, Mixed-use Developments, Residential Buildings
RAs sudR AiRPoRT PRojecT dilMuniA heAlTh islAnd develoPMenT PRojecT Budget $1,600,000,000 Project number MPP1811-B Territory Manama, Bahrain client name Ithmaar Development Company – IDC (Bahrain) Phone (+973) 1758 4601 Fax (+973) 1758 4017 description Development of
Budget $130,000,000 Project number WPR840-E Territory Cairo 11776, Egypt client Ministry of Civil Aviation (Egypt) Address Cairo Airport Company Building, Airport Road Phone (+20-2) 2267 7610 description Build-OperateTransfer (BOT) contract for the construction of an airport.
status New Tender Tender categories Airport, Construction & Contracting Tender Products Airports Development & Management
sTeel cAsTings & PiPing PlAnT PRojecT – sohAR PoRT & FReezone Budget $20,000,000 Project number WPR833-O Territory Oman client Jiangsu Changbao Steel Tube Company Ltd (China) Phone (+86-519) 8882 3741 Fax (+86-519) 8881 2052 email zhoucj@cbsteeltube.com Website www.cbsteeltube.com description Construction of a steel castings and piping plant with annual capacity of around 50,000 tonnes of steel pipes and tubular products. status New Tender Tender categories Industrial & Special Projects Tender Products Steel Mills
oil ReFineRy exPAnsion PRojecT Budget $1,400,000,000 Project number MPR1490-E Territory Cairo, Egypt client Middle East Oil Refinery – MIDOR (Egypt) Address 22 El Badia Street, Heliopolis Phone (+20-2) 4195501 Fax (+20-2) 4145936 email midor@egyptonline.com description Engineering,
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
48 February 2016
Tenders
Middle East tenders UAE MeeRA shAMs ResidenTiAl PRojecT – Al ReeM islAnd Budget $120,000,000 Project number WPR845-U Territory Abu Dhabi, United Arab Emirates client name ALDAR Properties PJSC (Abu Dhabi) Address 13th Floor, Abu Dhabi Chamber of Commerce Tower Postal/zip code 51133 Phone (+971-2) 810 5555 Fax (+971-2) 810 5550 email info@aldar.com Website www.aldar.com description Construction of two residential buildings comprising 26 floors to house 408 units. Period 2018 status New Tender Main consultant Woods Bagot (Abu Dhabi) design consultant Woods Bagot (Abu Dhabi) Tender categories Prestige Buildings Tender Products High-rise Towers, Residential Buildings
BuRjeel hosPiTAl PRojecT – MAdinAT zAyed Budget $60,000,000 Project number BPR684-U Territory Abu Dhabi, United Arab Emirates client name VPS Healthcare Group (Abu Dhabi) Postal/zip code 33566
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Phone (+971-2) 222 2366 email info@vpshealth.com Website www.vpshealth.com description Construction of a hospital. Period 2017 status Current Project Main consultant Society Technology House Consultant (Abu Dhabi) design consultant Society Technology House Consultant (Abu Dhabi) Main contractor Commodore Contracting Company LLC (Abu Dhabi) Tender categories Construction & Contracting, Medical & Healthcare
Tender Products Hospital Construction
ziRku AiRPoRT uPgRAde PRojecT Budget $20,000,000 Project number WPR282-U Territory Abu Dhabi, United Arab Emirates client name Zakum Development Company – ZADCO (Abu Dhabi) Address Sheikh Khalifa Energy Complex, Khalifa Street, Corniche Area Postal/zip code 46808 Phone (+971-2) 605 0000
Fax (+971-2) 678 9448 Website www.zadco.com description Carrying out expansion of an existing airport. Period 2016 status Current Project Main consultant RW Armstrong & Associates (Abu Dhabi) Project Manager Hill International Ltd (Abu Dhabi) Main contractor Actco General Contracting Company LLC (Abu Dhabi) Tender categories Airport, Construction & Contracting Tender Products Airports Development & Management
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
50 February 2016
Tenders
Qatar liFesTyle hoTel PRojecT Budget $50,000,000 Project number WPR820-Q Territory Doha, Qatar client name Al Jassim Group (Qatar) Postal/zip code 790 Phone (+974) 4432 9263 / 4446 6222 Fax (+974) 4432 9365 Website www.ajgqatar.com description Construction of a 5-star hotel comprising 4 basement levels, a ground floor, a mezzanine floor and 20 additional floors, including a serviced apartments building consisting of 4 basement levels, a ground floor, a mezzanine floor and 10 additional floors. status New Tender Main consultant Arab Engineering Bureau (Qatar) design consultant Arab Engineering Bureau (Qatar) shoring contractor Navayuga Engineering Company WLL (Qatar) Tender categories Hotels, Prestige Buildings Tender Products Hotel Construction
neW PhiliPPine school PRojecT Budget $35,000,000 Project number WPR797-Q Territory Doha, Qatar client name Philippine School Doha (Qatar) Address Saad Bin Surara, Old Muroor, Al Messilah Area Postal/zip code 19664 Phone (+974) 4418 1587/1596 Fax (+974) 4421 7718 Website www.psdqatar.com
description Construction of a school building comprising a ground floor and 2 additional floors. Period 2017 status Current Project Main consultant Almana Design Consultants International (Qatar) MeP consultant Almana Design Consultants International (Qatar) design consultant Almana Design Consultants International (Qatar) Main contractor Jasr Trading & Contracting Company WLL (Qatar) MeP contractor Master Engineering Services WLL (Qatar) Tender categories Construction & Contracting, Education & Training Tender Products Educational Developments
AsTeR hosPiTAl PRojecT – QATAR Project number WPR606-Q Budget $20,000,000 Territory Qatar client name Aster Hospital (Dubai)
Phone (+971-4) 398 8799 email dubai@asterhospital.com Website www.asterhospital.com description Construction of a new hospital, which will offer state-ofthe-art facilities and the latest in technology and medical expertise to provide secondary care services. Period 2016 status Current Project Main consultant Eurohealth Systems (Dubai) MeP consultant Dimensions Engineering Consultant (Qatar) design consultant Eurohealth Systems (Dubai) design consultant-2 KGD Architecture (India) Main consultant-2 Dimensions Engineering Consultant (Qatar) Main contractor Hamton International WLL (Qatar) MeP contractor Hamton International WLL (Qatar) Tender categories Construction & Contracting, Medical & Healthcare Tender Products Hospital Construction
Kuwait Police hosPiTAl PRojecT Project number SPA/202-K Territory Safat 13001, Kuwait client name Ministry of Public Works (Kuwait) Address Ministry of Public Works Bldg, 3rd Floor, 6th Ring Road Postal/zip code 8 Phone (+965) 2538 5520 Fax (+965) 2538 5219 / 2538 5234 email hmansour@mpa.gov.kw description Design, construction, completion, medical furnishing and operational maintenance of a hospital with capacity to accommodate up to 500 beds. Tender cost $66,007 closing date March 1, 2016 status New Tender Main consultant Gulf Consult (Kuwait) design consultant Gulf Consult (Kuwait) Tender categories Construction &
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
52 February 2016
Tenders
Contracting, Medical & Healthcare Tender Products Hospital Construction
Tender Products Power Generation Plants
Saudi Arabia suBiyA PoWeR PlAnT conveRsion PRojecT
sAWARi seA side ToWeRs PRojecT
Project number MEW/552014/2015-K Territory Safat – 13001, Kuwait client name Ministry of Electricity & Water (Kuwait) Address Ministry of Electricity & Water Bldg, South Al Surra Street, Ministries Area Postal/zip code 12 Phone (+965) 2537 1000 Fax (+965) 2537 1420 / 1421 / 1422 Website www.mew.gov.kw description Engineering, Procurement and Construction (EPC) contract for the conversion of opencycle gas turbine units to combinedcycle facilities in a power plant. status Current Project Tender categories Power & Alternative Energy
Budget $100,000,000 Project number WPR586-SA Territory Saudi Arabia client name Sawari Real Estate Company (Saudi Arabia) email info@sawari.com.sa Website www.sawari.com.sa description Construction of a five-star hotel building and hotel apartments building, each comprising a basement level, ground floor and 14 additional floors, with parking for 300 vehicles. Period 2017 status Current Project Main consultant Otaishan Consulting Engineers – OCE (Saudi Arabia) Main Architect Naga Architects, Designers & Planners (Saudi Arabia)
design consultant Nasser Al-Mulhim Consultant Engineers (Saudi Arabia) specialist consultant Jones Lang LaSalle (Saudi Arabia) Financial consultant Anfaal Capital (Saudi Arabia) legal consultant Suleman Al Khuraiji Advisory Office (Saudi Arabia) Auditors Ernst & Young (Riyadh) Main contractor Tareq Al Jaafari Contracting Establishment (Saudi Arabia) MeP contractor Tareq Al Jaafari Contracting Establishment (Saudi Arabia)
Formwork & scaffolding supplier Acrow Al Saudia Ltd (Saudi Arabia) Tender categories Construction & Contracting, Hotels Tender Products Hotel Construction
Bahrain The links inTegRATed TouRisM coMPlex PRojecT Budget $24,000,000 Project number WPR806-O Territory Muscat, Oman client name Al Badr Group (Oman) Phone (+968) 2469 2151 email badr@savills.om description Development of an integrated tourism complex comprising 260 residential apartments and recreational facilities, in addition to an extensive array of restaurants and shops. Period 2017 status Current Project Main consultant Lines & Visions International Engineering Consultant (Oman) Main contractor Unique Contracting Company (Oman) Tender categories Construction & Contracting, Hotels, Leisure & Entertainment Tender Products Residential Buildings, Retail Developments
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
February 2016 53
Show preview
Oman Opens its dOOrs
The 13th BIG Show Oman will run from March 28 to March 31, 2016 at the Oman International Exhibition Centre in Muscat
The 13th BIG Show Oman (Builders International Gathering), the best-established building, construction and interior design event in Oman, will take place against a backdrop of investments in the country’s infrastructure, construction and tourism sector as the government surges ahead with large-scale infrastructure and hospitality projects.
54 February 2016
From March 28 to 31, the Oman International Exhibition Centre will be the centre of a thousand new and innovative products and services from the ceramic and marble, doors and windows, kitchen and bathroom, interior design, HVAC, water technologies, green energy, pools and spa, construction tools and equipment, steel, concrete and cement, and wood and woodworking machinery segments.
Organisers say that despite current economic challenges, the exhibition has maintained 15% growth in exhibitor participation and sold exhibition space. They are expecting close to 400 exhibitors this year. The show welcomes the Kuwait pavilion, the first in Oman for any exhibition, which will feature 18 companies. Visitors will also see the various products
featured in the Germany, Turkey, Iran, China and India pavilions. Also participating for the first time is the Federation of Indian Export Organisations (FIEO), which will bring in 25 companies from India. The BIG Show Oman is organised by Omanexpo, the leading exhibition and conference organiser in Oman. Last year’s edition registered a record number of 15,000 visitors.
Last word
Advancing Australia’s Cause Mahmoud Fahmy, Qatar chair of Engineers Australia, talks about the progress made by the chapter, six months on from its inception Last year, Engineers Australia successfully launched its fifth overseas chapter – its first in the Middle East – with two events held on August 4 and August 5, 2015 in Dubai and Doha respectively. Six months on, Big Project ME caught up with Mahmoud Fahmy, the chair of the chapter in Qatar, to find out how things are progressing and what he hopes will result from its founding. Where are the other chapters, and why did you choose the UAE and Qatar for this chapter?
Engineers Australia has four overseas chapters – Hong Kong, Malaysia, Singapore and one in the UK. About two years ago, we had a group of engineers here in the region that were more active in Qatar and in the UAE. There was then a conversation to open a fifth chapter overseas, which was done in August 2015. The vision of Engineers Australia, which represents one-third of the engineers in Australia
56 February 2016
– which is around 100,000 members, with more than 5,000 of them overseas – is to have a global reach. What affiliations does Engineers Australia have, and how does it help its members?
As a body, Engineers Australia is affiliated with a number of respected engineering bodies in the US and the UK. The charter of Engineers Australia is also well recognised in Canada, the US, Singapore and the UK. The first thing that members in the Middle East looked for was having access to opportunities like Continuous Professional Development (CPDs), seminars, talks, networking opportunities and all of that. Another motivation to open a chapter here was to attract young, nonAustralian engineers to join Engineers Australia, which we found was quite an attractive proposition here in the Middle East, especially with the number of expats
living here and who are quite keen to consider moving to Australia for immigration at some point. We do the assessment for immigration for engineers, for their qualification. Also, it’s a reputable body to join. People often consider between ICA and Engineers Australia, and they often decide to join us because they think it’ll help them with their career progression. How many members do you have in the Middle East? What’s the response been like from engineers on the ground?
In Qatar, we have about 700 members, and these are members of Engineers Australia, people who subscribed to it in Australia and have moved to the Middle East. We don’t have a ‘local membership’. If you’re a member of Engineers Australia, then you’re a member of the original body, and if you move overseas, you can subscribe to the local chapter for the
region you’re living in. There’s been a strong response in attracting non-Australian members, and that’s because of the immigration aspect. We’re finding that all those who are interested in migrating to Australia, they do the assessment [of their qualifications], and after they do their assessment, they come to us and say, “We’ve already done the assessment, it’s going to be beneficial for us to join Engineers Australia if we move to Australia.” Also, people say that they want to be chartered, and in order to be chartered, they need to join us as a member and do the second stage of assessment. How do you help engineers in the region with CPDs, training and the like?
CPDs are a requirement of our charter, as it states that you need a number of CPDs over a year’s period and it’s audited. What we do in the chapter is that we have a pool of professionals,
so every month we set up a technical seminar and we cover a lot of topics. The second thing is that we have a professional development programme, where we have a mutual agreement with a company. Usually it’s more with consultants, rather than contractors. For example, we’ve signed a CPD agreement with AECOM here in the Middle East, and we’re looking to sign with other consultants. The companies that agree to these CPD agreements can send them back to Australia to be audited, and as a chapter over here, we can assist them by giving toolbox talks or a workshop about the process, how it’s done, and assist them in a mentoring role. For contractors, we invite them to events that we hold. We find that some people are interested to join, but they are relatively few. I’d say that 90% of the people who come to our events are more from the programme management, consultants and so on.
IVECO TRIUMPHS AT THE DAKAR 2016
3 IVECO in the top 5 Gerard de Rooy, the leader of the Petronas De Rooy Iveco team, is overall winner.
RSTAR
WE ECO PO
IV
#501
OOY D DE R GERAR rallardona or sés T Moi odewald Darek R
FINAL RANKING: POS. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
DRIVER
De Rooy Mardeev Villag ra Stacey Van Genugten De Baar Nikolaev Valtr Ver sluis Pep Vila Roca Ardavichus Van den Heuvel
1st VEHICLE
Iveco Powerstar Kamaz Iveco Powerstar MAN Iveco Trakker Renault Trucks Kamaz Tatra MAN Iveco Trakker Tatra Scania
516 KER # GTEN K A R T ENU IVECO VAN G
TIME 44:42:03 45:52:30 46:22:58 47:05:04 47:13:02 47:46:10 48:21:26 48:36:33 48:39:55 49:37:07 49:43:09 49:57:44
N ANTO impt van L Anton d an Eer Peter v
IVECO PO
WERSTA
FEDERIC
OV
R #514
ILLAGRA Jorge Pérez Companc Andrés M emi
3rd
Thanks to: , Xavi Colomé Roqueta and Marc Torres Sala , the fast service truck who finished 10th Pep Vila Roca Aleš Loprais , Ferrán Marco Alcayna and Bernard der Kinderen , who unfortunately abandoned during stage 5 The FPT team in Arbon who specially prepared Iveco’s Cursor 13 engines manufactured in Bourbon Lancy plant The whole team, sponsors, friends and supporters.
“I wish to dedicate our victory to my former co-pilot Jurgen Damen
who accidentally passed away last year” Gerard De Rooy
AFTER MAGELYS, COACH OF THE YEAR 2016 AND EUROCARGO, TRUCK OF THE YEAR 2016 IVECO TRIUMPHS AT THE DAKAR 2016, THE WORLD’S TOUGHEST RALLY.
5th
Dongdaemun Design Plaza