Big Project ME January 2015 by Big Project Middle East

JANUARY 2015

A MAN OF HIS WORD Andrew Body, Mouchel MD, on the importance of keeping your promises

ALSO INSIDE Retail ambitions Dubai paRks anD ResoRts bahRain gets a boost the bim leaDeRship foRum

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CONTENTS

JANUARY 2015 08 the big picture Dubai strategic plan 2021 launcheD plan is a new phase in sustainable and systematic development of Dubai

12 in profile the mall magnate Jerusha Sequeira talks to Kenneth himmel, ceo of related urban, as construction begins on Al Maryah central in Abu Dhabi

18 Site viSit big buDget attraction big project Me visits the Dubai parks and resorts construction site

24 in profile a man of his worD Andrew body tells gavin Davids that keeping your promises to clients is the only way to succeed in this construction landscape

30 proJect profile retail symmetry big project Me profiles the design and development of the award winning Yas Mall

36 MArKet focuS: bAhrAin bahrain gets a boost Jerusha Sequeira explains why bahrain can expect to see economic growth

40 Sector focuS: SKillS ShortAge briDging the skills gap big project Me finds out how educational institutes can solve the skills shortage in the gcc

42 event review bim leaDership forum big project Me reports from the biM leadership forum held on December 17 at Autodesk university extension Dubai 2014

48 coMMent challenges anD opportunities in sustainable Development nivine issa from AeSg outlines how the Middle east can take advantage of green opportunities

56 conStructive criticiSM5 sauDi Dispute eDucation lee barry outlines some of the best ways to engage experts in the event of arbitration

JANUARY 2015

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PAGE 18

Big Project ME checks out the development of the GCCâ&#x20AC;&#x2122;s most ambitious theme park project.

At the 2014 Construction Machinery Show we sold 70 units and 100 more units are under discussion. We have delivered a positive message to our existing clients, our competitors, and grabbed new clients. I think gaining such an appreciation from all members in the construction equipment sector is a great honour and will encourage us to work very hard to keep the same level of style, image, and standards.”

This year the CM Show team delivered an exhibition Saudi deserves. For years, we have seen a vision in this Show and this year the vision was achieved. We wanted quality traffic and we saw equipment and company owners; and we were able to offer some promotions to entice sales. I saw an increase in our sales immediately. Our principles, Doosan and Everdigm, really enjoyed themselves. We anticipate the upcoming years to be even better.”

The Construction Machinery Show was perfect from an awareness point of view. We explained Roots Group Arabia’s capability of covering the construction industry with all of its needs and requirements. The attendance was good especially during weekdays and towards the end of the exhibition. See you next year.”

Al-Qahtani & Sons Khaled El Shatoury, Managing Director

Saudi Diesel Equipment Ahmed Alkooheji, Marketing Manager

Roots Group Arabia Abdulaziz Felemban, Brand Manager

Co-located with

Raz Islam Publishing Director raz.islam@cpimediagroup.com Mobile: +971 50 451 8213

Michael Stansfield Commercial Director michael.stansfield@cpimediagroup.com Mobile: +971 55 150 3849

INTRODUCTION

bigprojectMe.COm

Keys to the Kingdom

Group Chairman and Founder Dominic De SouSa Group Ceo naDeem HooD Group Coo Gina o’HaRa

puBLiShinG direCtor

As the Big Project ME team shakes off the post-New Year’s Eve fog and begins planning for the year ahead, it’s perhaps an opportune time to take stock of what lies ahead for the GCC construction industry in 2015. Contractors look set to have a lot on their plate despite a drop in the total value of projects awards, with transport and power infrastructure projects set to be amongst the major growth sectors, in terms of opportunities available to the industry. Saying this, the sense of optimism that we saw at the start of 2014 has dimmed quite significantly. According to Pinsent Masons’ Annual GCC Survey, the level of optimism within the industry has fallen by 13%, compared to 2013. This drop in positivity is attributed to the ongoing political uncertainty in markets like Iraq, while the fall in oil prices and increased competition in the market has also impacted on contractor confidence. What has been most surprising however has been the fall in perceptions for events like Expo 2020 and the FIFA World Cup in Qatar. Less than 10% of respondents to the Pinsent Masons survey said that they thought the Expo would provide a dramatic upswing for construction businesses, at least between 2014 and 2016. It’s not all doom and gloom however, and what really caught my attention was that 40% of respondents thought that Saudi Arabia was now the easiest regional market to do business with. To put that into perspective, less than 10% thought the same in 2013. While the UAE remains the overwhelming leader in terms of ease of business (96%), this huge shift in perception for the Kingdom is indicative of the changing mindset of Saudi authorities, says Sachin Kerur, managing partner – Gulf Region at Pinsent Masons. So what does this mean for the construction industry? Could we finally see the Saudi market start to open up in 2015? The implications of that could be huge for the regional construction industry, given its already established dominance. We’ll certainly be keeping an eye on this developing story over the coming months. Things have just gotten extremely interesting in the Kingdom.

RaZ iSLam raz.islam@cpimediagroup.com +971 4 375 5471 editoriaL direCtor ViJaYa cHeRian vijaya.cherian@cpimediagroup.com +971 4 375 5472 eDiToRiaL editor GaVin DaViDS gavin.davids@cpimediagroup.com +971 4 375 5480 reporter JeRuSHa SeQueiRa jerusha.sequeira@cpimediagroup.com +971 4 375 5477 SuB editor aeLReD DoYLe aDVeRTiSinG CommerCiaL direCtor micHaeL STanSFieLD michael.stansfield@cpimediagroup.com +971 4 375 5497 Senior SaLeS manaGer YaSin aLVeS yasin.alves@cpimediagroup.com +971 4 375 5496 maRKeTinG marKetinG manaGer LiSa JuSTice lisa.justice@cpimediagroup.com +971 4 375 5498 DeSiGn art direCtor Simon coBon ciRcuLaTion & PRoDucTion dataBaSe and CirCuLation manaGer RaJeeSH m rajeesh.nair@cpimediagroup.com +971 4 440 9147 produCtion manaGer ViPin V. ViJaY vipin.vijay@cpimediagroup.com +971 4 375 5713 DiGiTaL diGitaL ServiCeS manaGer TRiSTan TRoY maaGma PuBLiSHeD BY

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Gavin Davids Editor

JANUARY 2015

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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THE BIG PICTURE

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new viSion The Dubai Strategic Plan 2021 will mark a new phase of sustainable and systematic development in the emirate.

Sheikh MohaMMed launcheS dubai Strategic Plan 2021 new phase in sustainaBle and systematic developments in all vital sectors Sheikh MohaMMed bin Rashid al Maktoum, Vice President and Prime Minister of the Uae and Ruler of dubai, has launched the dubai Strategic Plan 2021. The plan will be the “beginning of a new phase of sustainable and systematic developments in all vital sectors in the emirate of dubai”, WAM, the state news agency, reported. The framework of the plan includes six themes that will define and describe dubai in 2021: City of happy, Creative & empowered People; an inclusive & Cohesive Society; The Preferred Place to Live, Work & Visit; a Smart & Sustainable City; a Pivotal hub in the Global economy; and a Pioneering & excellent Government. drafted through a series of workshops, data collection and comparisons to benchmark cities, the dubai Strategic Plan 2021 has been launched as a framework for the continued development of the city. The team behind the Plan researched theoretical models for the development

SegmentS conSulted to draft dubai Strategic Plan 2021: n 20 – leaders of the government and the emirate

n 200 – government employees

n 75 – workshops n 75 – external experts

n 70 – university students

of cities. They also examined various benchmark cities that relate to dubai geographically, economically and socially. These included Singapore, London, new York, helsinki, barcelona, Melbourne and kuala Lumpur. Government of dubai entities were engaged through workshops at the beginning of 2014, which allowed the team to arrive at a strategic framework and related key Performance indicators (kPis). These will be used to assess and understand dubai’s current standing, the team said. in addition, it will measure its progress in achieving targets and goals. The dubai Plan 2021 framework and kPis were subsequently endorsed by the Sector Committees, and approved by the executive Council in May 2014. The next phase saw the collection of data and information in collaboration with all dubai Government entities and the dubai Statistics Centre. This allowed the team to prepare a comprehensive

situation analysis that will assess dubai’s current performance and key gaps. Furthermore, university students participated in a workshop entitled ‘dubai... the Future’, which brought forth a number of ideas reflecting the younger generation’s priorities and aspirations. These ideas were key inputs for the development of various elements of the Plan. in addition, a digital brainstorm session was conducted through the Plan’s social media platforms. This engaged a crosssection of the city’s society and garnered the input of the global community. Finally, a series of workshops with local and global experts in various fields were conducted to identify global mega-trends and their potential impact on the region and dubai itself. These were followed by the dubai Plan 2021 Creative Labs, which involved leaders and experts from government, the private sector and civil society.

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Big project me talks to kenneth himmel, ceo of related urban, about al maryah central – Page 12

JANUARY 2015

THE BIG PICTURE

develoPerS Pre-eMPt Surge in conStruction Material deMand Firms locking in project contracts ahead oF anticipated rush For resources LoCaL deVeLoPeRS aRe moving to pre-empt a surge in demand in the construction sector by locking in project contracts well ahead of an anticipated rush for resources in the build-up to major events in the GCC region. “Staying ahead of the curve would mean doing everything possible to win contractor commitments now rather than 24 months later, when there could be a choking up of capacity in the construction sector,” said Rahail aslam, Ceo of Select Group, in a report by Gulf News. illustrating his point, aslam added that his firm had just awarded a $272.26 million contract to aLeC as the main contractor for its Marina Gate 1 and 2 structures in dubai Marina. “There’s still plenty of spare capacity available right now,” he said, but pointed out that this may not be the case for long. The first six months of 2015 are projected to see a spate of major construction awards, with government agencies expected to lead the way.

For the Marina Gate development, aslam said that the developer was looking to finish one of the towers by the third quarter of 2017, and the other by the second quarter of 2018. The construction timeline for the third part of the project has not been announced yet. developers remain wary of a sharp spike in project-related costs, though this hasn’t yet happened. key building material prices are still relatively stable, with enough to feed short- to mediumterm demand. in fact, some categories could do with an increase in production, with steel manufacturers pointing out that local production could be increased to lessen dependence on imports. “We expect 2015 would witness more demand [for steel-specific products] compared to the current year,” said bharat bhatia, Ceo of Conares. “The forward indications remain promising as projects continue to be moving on... albeit there have been concerns on further liquidity and asian economic activities to catch up

StatS n 60-70% – Percentage of demand met by local rebar products

n 3.3 million tonnes – demand for rebar in 2014

n 15% – increase in demand for steel products in the uae

n $272.2 million – Value of contract awarded to alec by select group for marina gate 1&2

towards the later part of the year. [but] the dubai steel market has enough capacity to support the new wave of infrastructure developments that is planned up to 2020.” in an earlier report in november 2014, bhatia said that 60-70% of demand for steel rebar in the Uae market was being addressed by local manufacturers, with the rest covered by imports. demand in the Uae rebar market is estimated to have remained stable at 3-3.3 million tonnes, he added. “For the steel market in general, 2014 started with a bang. There has been a strong demand for steel products in the Uae, which increased by 15% compared to last year. The positive upbeat of the economy in the earlier months of the year, coupled with evidenced liquidity in the market, has reinforced the steel market. “We expect the year 2015 would witness more demand compared to the current year. The forward indications remain promising as projects continue to be moving on.”

early MoverS Local developers are looking to secure contractors and materials ahead of an anticipated boom.

JANUARY 2015

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Big project me talks to andrew body, managing director of mouchel – Page 24

THE BIG PICTURE

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Curbed enthusiasm Despite optimism, the GCC construction industry remains concerned about high oil prices, competition and other factors.

Optimism tempered amOng gCC COnstruCtiOn firms fOr 2015 Falling oil prices, high competition and cooling oF expo Fever to Blame The GCC’s ConsTruCTion sector is optimistic about what 2015 holds in store, but its enthusiasm has been tempered over the last year, according to a survey by the uK-based law firm Pinsent Masons. 77% of respondents state they are positive about 2015, but their optimism is down 13% from last year. Falling oil prices, cut-throat competition and the cost of accessible capital are to be blamed for decreased enthusiasm, the firm said in a statement, adding that another reason for the tempered optimism may be the cooling of expo fever. Less than 10% of survey respondents feel the expo will create a significant upswing for construction firms between 2014 and 2016, compared to last year, when 26% of firms thought the expo

StatS n 10% – survey respondents who think the expo will create a significant upswing for construction firms between 2014 and 2016

n 26% – Firms who think it will lead to a major boost between 2016 and 2020

n 96% – percentage of respondents who think the uae is the easiest market to work in

would lead to a major boost between 2016 and 2020. “These results offer an insight into how the GCC construction market is shaping up for the year ahead. optimism clearly remains high, but there is a marked cooling compared to last year when expo fever was at its height,” said sachin Kerur, managing partner, Gulf region at Pinsent Masons. The strongest performing markets for construction in the MenA region for next year are expected to be saudi Arabia (40%), the uAe (33%) and Qatar (14%), the survey found. The uAe is perceived as the easiest market to work in by 96% of respondents, with oman the second easiest. Perceptions regarding ease of doing business in saudi Arabia have improved, with 23% of respondents calling it the

easiest market to work with, up from around 10% last year. “Construction firms have long perceived the opportunity in saudi Arabia as being the most promising in the region. But in the past, the challenge of doing business there has meant opportunities haven’t always come to fruition. This situation now seems to be changing, with the ease of doing business starting to improve. This suggests we may see more opportunities converting within the Kingdom in the years ahead, which chimes with the more open sentiment emerging from the saudi authorities,” Kerur added. Looking ahead, Pinsent Masons also expects PPPs to become an increasing part of the financing mix, although Kerur admits they are yet to gain traction as a primary means of funding big projects.

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Big project me visits the massive dubai parks and resorts construction site– Page 18

JANUARY 2015

In ProfIle Kenneth himmel

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The Mall magnate

Kenneth Himmel, CEO of Related Urban, the mixed-use development division of Related Companies, tells Jerusha Sequeira why he thinks Abu Dhabi is the next big GCC retail destination

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hile it isn’t yet the shopper’s haven that Dubai is, Abu Dhabi has always been keen to ramp up its retail offerings, with major upcoming malls in store. Aldar Properties officially opened its much-awaited Yas Mall in November, and Abu Dhabi’s retail sector is attracting foreign investment as well, with Kuwait-based United Projects for Aviation Services Company investing about $224 million in the upcoming Reem Mall, an 185,806sqm shopping centre on Reem Island. According to a report by real estate consultancy CBRE, Abu Dhabi delivered 168,000sqm of retail space in 2013. The city also has an additional 778,000sqm in the pipeline for development, placing it in the top 20 cities globally for shopping centre development. Amidst all this development, the capital is set to welcome another addition in 2018: the $1.4 billion Al Maryah Central, on Al Maryah Island. Construction work has begun on the project, with opening slated for March 1, 2018. The 214,000sqm shopping centre is being developed in Abu Dhabi by Gulf Related, a joint venture between asset management firm Gulf Capital and Related Companies, a US-based real estate development and investment firm. Related Companies has worked on several major projects in the US, including a 260,000sqm mixed-use project in New York serving as the Time Warner world headquarters. Kenneth Himmel is president and CEO of Related Urban, the mixed-use development

JANUARY 2015

division of Related Companies. With 30 years of experience in mixed-use development under his belt, Himmel is also managing partner of Gulf Related, which was formed to pursue real estate development opportunities in Abu Dhabi and the Kingdom of Saudi Arabia. “We’re involved very heavily in Boston, Chicago, San Francisco, Los Angeles, Miami, so we cover a lot of geography in the US,” Himmel tells Big Project ME at the ground-breaking ceremony for Al Maryah Central. Another significant project currently underway is Hudson Yards in New York, a 1.6 million sqm mixed-use development that will house the new headquarters of Time Warner, as well as the offices of other major brands

“INdIA, ChINA, EAstERN EURopE, NoRth AfRICA – YoU’RE tAlkINg A foUR-hoUR flIght tImE [ANd] Almost two ANd A hAlf bIllIoN pEoplE. thEY’RE goINg to ComE. thERE’s No qUEstIoN”

like Coach, L’Oreal and the German software company SAP. “Hudson Yards is our biggest project, which is on New York’s West Side. It’s the largest real estate project in the United States ever. We have a massive team of people working on it,” Himmel says. The development will include commercial and residential space, five office towers, shops, restaurants, a public school and a 175-room luxury hotel. “One of the investors, in our company in the US, is Mubadala. And they invested in our company about seven years ago. So it was a pretty natural thing when I came here and we did a joint venture with Gulf Capital,” Himmel says. “After spending a year looking at many projects all over the region… we came back here and said this is really where we should do business in Abu Dhabi. For the kind of thing we wanted to do, the island and the opportunity in the island became most interesting.” Work on the Al Maryah Central project has begun, with the main contractor expected to be announced next year. “We’re underway with the subcontractor for the site work, but the major contractor won’t be selected until next spring,” Himmel says, adding that the decision will likely be made in April or May. “We’re going to select the contractor based on design development drawings, and complete all the drawings with the contractor.” The project is being financed with both debt and equity, and is scheduled for completion within the next four years. “We have all the

JANUARY 2015

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In ProfIle Kenneth himmel

bigprojectMe.com

CApItAl mARkEt Abu Dhabi is stepping up its retail offerings as it looks to compete with the likes of Dubai as a shopping destination.

equity in place and all the debt committed. It’s 100% committed in terms of capital. We’re opening March 1 of 2018,” Himmel says, adding that the entire megaproject will be opened in a single phase. “I don’t open in phases. You only get one chance to open,” he asserts, rather cockily. The Al Maryah Central mall will be located adjacent to an existing high-end shopping centre on Al Maryah Island – the Galleria mall, also developed by Gulf Related. The two malls will be connected by a bridge. UNmEt dEmANd Himmel (left) says that Al Maryah Central is being built in response to demand for more retail space in the UAE capital.

“When we developed the Galleria in a joint venture with Mubadala, it was a very different project before we got involved,” Himmel says. “It was only about 18,000sqm of retailing, less than that actually. And it was never geared to the kind of retailing we did. So we reinvented that project and presented our vision to them, and then we did a joint venture with them and we executed the whole project.” Commenting on why the developer decided to build a second mall next to an existing shopping centre, Himmel says there was unmet

demand for retail space even after the Galleria was complete. “Al Maryah Central came about because of the enormous success and the demand from the Galleria. We actually had unmet demand. We finished leasing the Galleria, we had something like 37,000sqm of retailers we had no place to put… so my architect and I did a remaster plan of the island, and we rezoned the island to take a major shopping centre.” The Al Maryah Central mall will also be the first shopping centre outside the US to

Gulf Related aWaRds $130m contRact to dsI foR antaRa pRoject In saudI gulf related awarded a $130 million construction contract in September to Drake & Scull international for the construction of Antara, its residential project in Saudi Arabia. The project is a self-contained residential compound for expatriates in the northwestern part of riyadh, close to the King abdullah financial District. antara is a 157,300sqm development with 520 homes in a built-up area of 98,115sqm, including 12 apartment buildings with a total of 267 apartments, 70 duplexes and 151 villas. “our impressive portfolio of projects in the country, along with our track record of undertaking massive scale projects, assured Gulf related of our capabilities and awarded us with the contract for the antara expatriate residential compound,” said Saleh Muradweij, managing director of Drake & Scull Construction. “antara will be transformational for the new urban area of riyadh, and will serve as a model residential development for the expatriate community in and around riyadh,” said emile

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habib, managing director of Gulf related.

JANUARY 2015

In ProfIle Kenneth himmel

bigprojectMe.com

All IN oR NothINg Himmel says Al Maryah Central will open in one go, as he doesn’t believe in opening in phases.

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feature the iconic American department store Macy’s. “I do a lot of business with Macy’s and Bloomingdale’s in the US, so we together convinced them to do the first Macy’s store outside the United States, which I think is going to be spectacular,” Himmel says. “Macy’s is very popular in the US, and it’s got a price point. It’s quality value-driven, very promotional, with lots of great brands.” The mall will also house the UAE’s second Bloomingdale’s (the first is in Dubai Mall). While Macy’s will be more value-driven, Bloomingdale’s will cater to the more high-end side of the market, Himmel notes. “You have a luxury department store and a great value-driven promotional department store very complementary to each other.” This kind of complementary relationship between the high-end and the value-driven will exist between the Galleria and Al Maryah Central mall as well. While the Galleria mostly features luxury brands, Al Maryah Central will

JANUARY 2015

offer a more diverse selection for shoppers, Himmel insists. “At its peak, [the Galleria] will draw five million people a year. It won’t draw any more than that because it’s so luxurious. “[Al Maryah Central] will draw over 20 million people a year. We’ve done the research, our department stores have done the research. So combined, you’re talking 25 million people a year,” he explains, adding that he doesn’t expect any cannibalisation of revenue between the two malls. “They’re totally different tenant mixes.” Himmel adds that he is optimistic about the

future of tourism in Abu Dhabi and the UAE, on account of the country’s location, which makes it a hub for retail and travel. “India, China, Eastern Europe, North Africa – you’re talking a four-hour flight time [and] almost two and a half billion people. They’re going to come. There’s no question.” The developer does not have any other projects in the pipeline for the UAE at the moment. “When you see this project, when you see how big and complicated this is, we’re not doing anything else right now. This has got all of our attention.”

“AftER spENdINg A YEAR lookINg At mANY pRoJECts All ovER thE REgIoN… wE CAmE bACk hERE ANd sAId thIs Is REAllY whERE wE shoUld do bUsINEss IN AbU dhAbI”

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ON SITE Dubai Parks anD resorts

Big Budget AttrAction Big Project ME takes a tour around the massive Dubai Parks and Resorts site – home of three of the region’s most exciting theme park projects. Gavin Davids reports

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he scenery along the Dubai – Abu Dhabi highway has never been very exciting, with featureless mounds of sand and the occasional shrub the only things to catch the eye. The only indication that one is entering or leaving one of the region’s most dynamic cities is the vast industrial heartland of Jebel Ali. All that is about to change over the next two years. As keen-eyed motorists might notice, there is a huge swathe of construction hoardings running along the highway, hiding one of Dubai’s most intriguing construction projects. Last November, Dubai Parks and Resorts, a subsidiary of Meraas Holding, announced that it has achieved 35% completion of its preliminary infrastructure work across its $2.72 billion multi-themed leisure and entertainment project. It also announced that, in parallel with the infrastructure works, civil works had commenced. Meanwhile, more than 50% of the construction contracts have been procured, with 45% of utility services complete, according to Dubai Parks and Resorts. With excavation work for the district cooling facility also seeing significant progress, the project is well

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ON SITE Dubai Parks anD resorts

underway and looking to hit its scheduled completion date in the third quarter of 2016. Launched under the directive of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the Vice-President and Prime Minister of the UAE and Ruler of Dubai, the Dubai Parks and Resorts project aims to become one of the premier tourist attractions in a city built for tourism. Using the likes of Universal Studios and Disneyland as inspiration, the developers behind the Dubai parks are building three theme parks in the area – Motiongate Dubai, Legoland Dubai and Bollywood Parks. A four-star resort, Lapita Hotel, will also be built, along with Riverpark – a complementary retail, dining and entertainment district that will connect the three parks and the hotel. Part of Dubai’s Tourism Vision 2020, the parks aim to help achieve annual visitor numbers of 20 million a year in 2020, while increasing the economic contribution of the tourism sector. “We chose Dubai because of the push for tourism. This is a city built for tourism,” says Brian Machamer, senior director – Theme Park Operations at Dubai Parks and Resorts. “Between the three parks, there will be tiered pricing, I know that for a fact. We’ll have packaging with hotels [in the city]. Of course, if you go to more than one park, you’ll get discounts. Riverpark will be a destination of its own, with tourists and locals coming out for both retail and dining,” he tells Big Project ME during a media tour of the gargantuan site. “Movie theme parks always do well. Universal has a couple of Dreamworks attractions, they have a 4D theatre in Singapore and they have one

STATS n $2.72 billion – investment in the Dubai Parks and resorts project

n 2,322,576sqm – total area of the project

n 1.48 million sqm – initial area of the project being developed

n 6.7 million – expected annual

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number of visitors

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bigprojectMe.com

ON SITE Dubai Parks anD resorts

JANUARY 2015

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expansion aRea The developers of the project have left room for considerable expansion of the theme parks, should there be demand for it.

“Right now, we only have a 24/7 cycle wheRe it’s cRitical. if the pRoject gets behind schedule, it’ll be 24/7 till we catch up”

in Orlando as well. But this is the first time that Dreamworks have done anything with the movies How to Train Your Dragon and Kung Fu Panda, at least to this extent. We’re working with the writers of those films – both have new films coming out, and we’re working with them to introduce new characters and storylines, so that when the park opens it’ll be very current with the franchises.” The project covers a total area of 2,322,576sqm; an initial area of 1.48 million sqm will be developed, with access roads and parking taking up an additional 836,127sqm of land. “What we’ve put together is a good product offering. It’s not over the top. The whole plot for Motiongate is 371,612sqm; we’re only developing 185,806sqm for opening day. All three parks have expansion area. For each of them, we’re developing maybe half of the plot so that it allows for that expansion. In the old days they would have built up the whole area, so it’s a very practical approach,” Machamer asserts. With the first phase of the project scheduled to be completed in just over two years, it is probably for the best that the team stays prudent. With the procurement of the majority of the planned rides in place, Paul La France, chief projects officer at Dubai Parks and Resorts, says that a new phase of development is now underway. “Following a stringent bidding process, we have chosen some of the world’s leading players in the entertainment rides industry. Several of the attractions are world-firsts in terms of integrating best-in-class technology and expertise,” he says. “Utilities are 40% complete, as well as 40% of network infrastructure. The design of the access

ON SITE Dubai Parks anD resorts

road network is just about done, and will go out for tender [in January 2015]. It’s going to be ready for opening day. There will be three lanes going to Dubai and three lanes going to Abu Dhabi. “We have a sewage treatment plant, which is actually a temporary one; the real connection won’t be available for a number of years, so we’re using this one,” he says. “The substation will be done by July next year, it’s a big one and it’ll have the district cooling plant right behind it. That’s really key for us because, unlike the rest of the construction projects in Dubai, we have to test and adjust the rides. For that you need to have permanent power and you can’t use generators.” He adds that a Dubai Metro station will be built by 2018, keeping in mind the planned expansion of the metro network by the RTA. This close cooperation with the government authorities also extends to the planning of the roads and public transport systems, La France points out.

“[The road work] is being funded by Dubai Parks and Resorts; we’ve initiated the design, but it will be under the control of the RTA. The Metro station won’t open till 2018 as it’s really geared towards the Expo 2020 as well. It’s in the future, but it has been planned for and there are provisions for it.” In its first year of operations in 2017, Dubai Parks and Resorts is expected to attract 6.7 million visitors, with significant growth expected over the following four-year period. A number of high-calibre contractors and consultants have been engaged on the projects, with the likes of Samsung C&T, Hill International, ARCO General Contracting, Laing O’Rourke, Forrec, Cumming and Gensler all involved in some capacity. These companies are currently overseeing a workforce of more than 2,500 people. Once the construction schedule hits its peak at the end of 2015,

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Dubai Parks and Resorts estimates that 6,500 people will be working on the megaproject. “We’ve had no lost-time accidents so far. There’s a system in place and so far, so good. Peak construction is going to be in May 2015 and we’ll have to respect the laws of Dubai [with regard to summer work hours]. So between the hours of 12pm and 4pm, we won’t work. We respected that last year, we’ll respect it this year. It is what it is, you have to follow the rules. Right now, we only have a 24/7 cycle where it’s critical. If the project gets behind schedule, it’ll be 24/7 till we catch up. But of course, during the summer, we’ll follow the rules,” La France asserts. “60% of our team are from international theme parks – both from Disney and Universal. They all come from that business. The other part of the team is Dubai-based. So it’s a blend. You have to have local knowledge on a project like this,” he adds. local blend The project team is 60% international and 40% local, developers say.

heavy labouR An estimated 6,500 workers will be on-site at the peak of construction.

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“all thRee paRks have expansion aRea. foR each of them, we’Re developing maybe half of the plot so that it allows foR that”

JANUARY 2015

ON SITE Dubai Parks anD resorts

With above-ground work scheduled to start next year, and infrastructure and utilities work well underway, the project team had to ensure that the terrain on the site was prepared for operations. “It looks flat now,” says La France, “but it wasn’t flat. Yes, digging in sand was and is easier than digging in clay or mud, but we had to have piles in a few buildings – the Dreamworks building, the ‘Raj Mahal’ – for example. [However], most of them didn’t have piles because they’re lightweight structures. The soil is good here and the water table is about 20 feet down, so we didn’t have too many problems,” he adds as the media tour wraps up. “We have a great team that is overseeing the progress of this project, and we’ve made significant headway in all construction areas. It’s on budget and on schedule. I’ve been doing this for a long time, and I’m confident that we’ll do it!”

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As a result, the tendering process for the theme parks has been quite stringent, he says, pointing out that prior experience has been necessary in some cases. “The general contractors, some of them have experience in theme parks, but when you’re looking at the facades and theming, all that stuff – it is speciality stuff. There’s about eight or nine subcontractors who can do that work and they’re from all over the world, and from here as well, so they’re all nominated [for the main contractor to use].” “We’re tendering right now for the rest of the facility contracts – we should have awarded all our facility contracts by the end of 2014. 95% of the rides have been purchased from the vendors, so we’re okay there. What’s out to tender is the main package for the hotel, the main package for the river park and then a medium-sized package for Bollywood Park. Legoland has all been tendered,” La France says.

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In ProfIle Andrew Body

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In ProfIle Andrew Body

A M An of his word

Andrew Body, managing director of Mouchel, speaks to Big Project ME about why it’s crucial to keep your promises in a market undergoing tremendous change. Gavin Davids reports when the opportunity came up with Mouchel, I just thought it was a very exciting one. It’s a great brand – next year will be 40 years here in the GCC – but it was also a business that had been through times that were tougher than most thanks to the financial crisis,” he tells Big Project ME during an interview at his offices in Dubai’s Business Bay. Having grown up in New Zealand, Andrew Body began his career working with the Ministry of Transport there. He then moved to a body associated with the Ministry, TransFund. Rising to the rank of policy manager there, he decided to move into the private sector. At this point, he joined Hyder Consulting and helped set up their New Zealand office. Once operations there were running smoothly, Body decided to make the move

“The clieNTs we’Re woRkiNg wiTh, TheY’Re woRkiNg iN A mUch moRe sTRUcTURed wAY. TheY do hAve These mAgNificeNT visioNs, bUT TheY’Re NoT lookiNg To bUild iT All AT oNce”

overseas when the opportunity arose. That came about at the end of 2008, when he made the trip over to Dubai. Since then, he’s rarely looked back, as evidenced by his time at Mouchel. “Look, I went in with my eyes wide open,” he says of his decision to join the firm in 2012. “It was a business that had been through some tough times, but what I saw was a business with a great technical legacy, with some really great technical people. It just needed a bit more of a strategic and business-like approach around it,” the genial Kiwi relates. “But [what convinced me] was the vision of our chief executive, Grant Rumbles. Grant has spent a number of years based in the Middle East, so he’s really committed to this market and he can see how exciting this market can be. It was his excitement about the market and my belief that he would be strong and supportive of us as we tried to do what he wanted us to do that really pulled me towards Mouchel.” Although the firm has approximately 7,000 employees worldwide, Middle East operations account for only 400. Despite the small numbers on the ground, Body insists there isn’t any inferiority complex. “If you look at us in terms of size in the Middle East, we’re still a reasonably small player compared to some of the organisations that are out there. But if you look at the scale of Mouchel all over – then we’re a 7,000-person business. That’s across the UK, the GCC and Australia. “When you ask our clients where we rank compared to our competition in terms of our core areas of infrastructure design, they’d rank us right up there in the top tier of infrastructure consultants. We’ve more than doubled the size of the business over the last two years,

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ack in 2009, in the wake of the financial crisis that hit Dubai, the Mouchel Group announced that it was shutting down its operations in Dubai and focusing on its business in the UAE capital. Given that the UKowned engineering firm had a project list that included Dubai Festival City, Jumeirah Village South and Nakheel’s Dubai Waterfront, it’s easy to see why they came to such a drastic decision. With some $47.15 million owed to it from various clients, it seemed certain that the consultant’s time in Dubai was over. In fact, given the situation at the time, it would have been no surprise to see the firm shut up shop completely. Clearly this hasn’t been the case, and five years down the line, the situation has changed dramatically, with the Mouchel team now established as one of the most respected names in infrastructure development and design. This is borne out by its projects in the GCC, which include highways designed for major clients such as the Department of Transport in Abu Dhabi, Abu Dhabi Municipality, the Ministry of Transport in Saudi Arabia and Jeddah Municipality. A large chunk of this turnaround can be attributed to the decision Mouchel made in 2012, when it appointed Andrew Body managing director of its Middle East business. Despite only arriving in 2008, at the height of the crisis, his vast experience and willingness to embrace a challenge proved crucial in turning around Mouchel’s fortunes. “I arrived here in December 2008 – just as everything was very slow, let’s put it that way! I did about four years with Hyder Consulting. They were four really interesting years, but

In ProfIle Andrew Body

and the aim is to do that again in the next two years. Once we achieve that, we’ll be up there with our competitors in the Middle East. While we may not have as many people in the region as some of the big firms, Mouchel is an organisation that is really well joined up. We have access to the 2,500 engineers that we have in the UK and they come out and work with us on projects all the time,” Body adds. With the many opportunities available, he is adamant that his firm will soon be a dominant force in the region, but on its own terms. “You could just about turn yourself inside out chasing all the opportunities in the market, but in doing that you risk not being able to deliver. That’s one of the key things that we’re working on – to maintain our reputation – [and ensure] that we do what we say we’ll do.” This philosophy has allowed Mouchel’s Middle Eastern operations to flourish since Body took over, and he’s quite clear about the responsibility placed upon him and his team by the head office in the UK. “The thing I quite like about the way things are done here is that they’ve given us this business to run. If they think we’re not being aggressive enough, they’ll tell us. But we set

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our targets and we’re looking to grow by 50% [in 2015]. With our pipeline and with the contracts that we’re close to signing, I’m very confident that we’ll achieve that,” he insists. By concentrating on what it is good at, Mouchel can develop strong and enduring relationships with its clients, Body points out. Focusing on a smaller number of clients in the public sector has allowed the firm to provide infrastructure services above and beyond what their competition may be offering. “They’re [Mouchel’s clients] the people that are sitting there thinking, ‘I’ve got this big highway asset here, what am I going to do to make sure that I maintain its value for the next 50 or 60 years? How am I going to operate it in such a way that I’m going to get the best value out of it?’ It’s those clients that we’re working with and helping them to think about their strategies for managing their assets, and then developing the opportunities for them,” Body explains. “We’re actually providing a lot of these services at the moment. For Abu Dhabi Municipality, we’re looking after the maintenance of the entire road network on the island of Abu Dhabi. We’re working with

them to help achieve their vision of moving from a traditional maintenance-based operation to a more modern, integrated service like you see in some Western countries. For the Department of Transport in Abu Dhabi, we supervised the maintenance of 2,500km of roads in the Western Region. “That market is the stuff that I find really exciting. Agencies here are seeing the value they get out of maintaining and operating their assets in an efficient way, but they’re also sitting there thinking that they could be doing a whole lot better,” he asserts. Keeping this in mind, Mouchel’s business is structured around two distinct service lines: the infrastructure business, which is the core component of operations in the Middle East, and Transport Solutions. “In that business, we’ve got transport planning, traffic engineering, intelligent transport systems and asset management. If you look at all areas of Intelligent Transport Systems and Asset Management, that’s where Mouchel will come out on top. We’re the number one highways provider in the asset management field in the UK, and probably the number one in terms of ITS. That’s another part of why I

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TRANspoRT plAN Mouchel has focused on developing its core businesses of transport planning, traffic engineering and asset management.

JANUARY 2015

In ProfIle Andrew Body

think that it’s an exciting time for Mouchel in the Middle East, and why it was interesting for me to join [when I did]. We’re seeing those parts of the market really start to move,” he insists. Following the harsh lessons learnt in the wake of the crisis, Body says that Mouchel has been very careful about who they work with. He adds that consultants and contractors have also become wiser and cagier about how they go about their business. “The clients we’re working with, they’re working in a much more structured way. They do have these magnificent visions, but they’re not looking to build it all at once. They’ll develop their master plans and then they’ll work with us to identify how to do it in a staged, financially viable way. “Most consultants and contractors have understood that if it looks too good to be true, then it probably is! There’s an understanding that while relationships out here are still absolutely important – if not paramount – what is also very important is internal commercial control and making sure that you have the right contractual arrangements,” he says. As construction work in the GCC picks up steam ahead of the major events coming up in the next decade, contractors and consultants are going to be facing myriad challenges, Body warns. Chief amongst these challenges is keeping the right staff in place. With plans for a major recruitment drive in place for 2015, Body is acutely aware of the task ahead of him and his executive team at Mouchel Middle East. “Retaining good people at all levels of the organisation is a critical focus for us at the moment. I think that one of the things the industry can’t do is go back to what it was doing a while back, where insane salaries were being offered and people were just moving around. It just inflates prices everywhere. “We’re recruiting heavily, both here in the region as well as having a very structured programme to bring some long-term Mouchel people to the region, out from the UK. I think that’s one of the key differentiators. To clients here, being a strong international company only

bigprojectMe.com cleAR sTRATegY Andrew Body says that Mouchel will continue to focus on its strengths, rather than chasing projects it doesn’t have the resources for.

means anything if you’re bringing in strong international people to work on their projects. There are lots of consultants here who say that they will and then don’t do it. We’re looking to make sure that we do. We’re looking to recruit a couple of hundred people this year,” he claims. The firm is also looking to its UK operations as a guide to conducting its business, Body reveals. By this, he means using the existing supply chain in the UK and Australia to leverage expertise for projects in the GCC. Despite these ambitious plans, the man from Mouchel remains realistic ahead of what promises

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“whAT i sAw wAs A bUsiNess wiTh A gReAT TechNicAl legAcY, wiTh some ReAllY gReAT TechNicAl people. iT JUsT Needed A biT moRe of A sTRATegic ANd bUsiNess-like AppRoAch ARoUNd iT”

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to be a challenging 2015. He insists that his firm will remain true to its strategy, rather than overreaching and overextending itself. “It’s about us being clear in our strategy. We didn’t chase the Metro job in Riyadh, for instance. Mouchel can’t stand up and say that 1,200 people are going to be designing metros in Riyadh. But we certainly have a comparable level of resources to design the highways we’re designing for the Ministry of Transport in Saudi Arabia or in Abu Dhabi. “Yes, we want to continue growing, but I think that when you get to a certain size – and we’re already there – your client looks at you and thinks, ‘I believe that they can look after me.’ But they only get worried about that if you’re not looking after them in the first place,” he insists. “That’s the core of our strategy. It’s about client centricity and building great relationships. It’s about doing what we said we’ll do. If we keep doing that, we’ll be fine.”

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PROJECT PROFILE YAS MALL

Aldar

CONCEPT DESIGN

RTKL

DETAILED DESIGN

Aecom

PROJECT MANAGER

Ted Jacobs

CONTRACTOR

Six Construct

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CLIENT

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PROJECT PROFILE YAS MALL

Retail Symmetry

Big Project ME profiles the design and development of Yas Mall in Abu Dhabi, the shopping mall taking the capital by storm

head of the 2014 Abu Dhabi Grand Prix, Aldar Properties launched their latest flagship project, a shopping mall that rivals anything Dubai has to offer. The Yas Mall is a 230,000sqm behemoth next to Ferrari World and home to 370 stores, 60 food and drink outlets and a 20-screen cinema. Using its size to their advantage, the mall’s designers have created a sense of space and light, turning the cavernous interior into what feels like an outdoor space. “The whole idea is that it’s an outdoor mall but an indoor setting. You can see this in the variety of the skylights and the network of streets and avenues,” says Talal Al Dhiyebi, executive director of Asset Management at Aldar Properties. The mall’s layout is modelled on a traditional European town, with a network of streets and avenues leading to the ‘town square’ at the heart of the complex. The majority of units are spread over two levels, with the cinema and a children’s entertainment area on the upper floor. Although the mall contains more than a hint of Europe, an Arabic influence can be seen in details such as lanterns and geometric patterns. This is perhaps most apparent on the marble slabs of the exterior, which feature a jagged motif reminiscent of a fractured mashrabiya screen. The approach to the mall is nothing short of monumental, with manicured landscaping, colonnades and canopies drawing the visitor to the entrance. Original plans for the mall were downscaled

after the financial crisis, with concept architect RTKL recalibrating the design to fit Aldar’s revised requirements. Ted Jacobs was engaged as project manager, while Aecom provided schematic and detailed design, structural design and construction supervision over contractor Six Construct. “The concept of the town square with avenues and streets, and the proportions of width to height, was all developed by RTKL. Aecom worked intensively on the detailing, developing the design to make it work and assessing the various materials,” remarks Jamal Araj, project director for Aecom, speaking to Big Project ME. He explains that materials include limestone flooring from Egypt, oak and glassreinforced gypsum for the Arabic details. “Aldar didn’t want a replica of the other malls with their shiny, marble floors. It wanted to keep the finishes tactile and it did not want to add much colour – that’s why everything is practically white, aside from the food court.” Aldar’s Al Dhiyebi adds: “Look at the floor – it is not polished, overpowering stone, it’s very natural and very urban. Combined with the lush, green landscaping and the great facades of the retail units, it is an unparalleled experience that’s very different to other malls.” A striking sense of symmetry dictates the mall’s plan, with four parking structures holding a total of 12,000 cars around the perimeter. Araj

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“There’s a loT of acTiviTy and open space. a loT of malls feel very clausTrophobic, buT The whole experience here is very differenT”

PrOJeCt PrOFILe YaS Mall

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reveals that the entire floor plan contains no expansion joints, aside from the connections between buildings. “This required a large amount of additional steel in the structure to offset the thermal stresses of the hydration of the concrete.” The floor plan also includes back-of-house service corridors for the vast majority of retail units, something that is normal for malls, according to Araj. Other distinguishing elements include a predominance of landscaping – including tall, spindly flora in the welcome pavilion – and heavy use of artwork. Challenges surrounded the illumination of the art, as Araj explains: “The artwork came as an afterthought, so it was a challenge to control the power – we had to use remote controls.” Al Dhiyebi points out an eye-catching bronze sculpture by South African artist Marco Cianfanelli, renowned for his depiction of Nelson Mandela. “We wanted to do something different, so we commissioned three sculptures from this famous artist.” The circulation route is extremely varied, with open spaces leaning to narrow alleyways. This variety is reflected in the skylights, which morph from narrow gashes fringed by wood to larger atrium-type openings. After passing through the winding streets, the tour arrives at the pièce de résistance, the town square. “It is the largest public gathering space of any shopping mall in the region,” says Al Dhiyebi. “As you can see, it is anchored by cafés on the ground floor. There’s a lot of activity and open space. A lot of malls feel very claustrophobic, but the whole experience here is very different.” Araj reiterates that the town square forms the natural heart of the complex. “Normally, a village starts from a courtyard and everything organically grows around this common public space. It helps to develop proper circulation, and there are symmetrical avenues in our mall.” Continuing the mall’s artistic leanings, the town square features a paper-based artwork by Dutchman Peter Gentenaar wrapping around the upper level. Although the artwork feels fairly integrated with the overall design, sandwiched between oak-clad pillars, Aecom was not heavily involved. Araj remarks: “We just had to make sure the plastic rod is strong enough to carry it. Some people like it and others don’t. It’s hard to talk to the artists – they are sometimes like space cadets. The guy didn’t know what a consultant was.” Although it may divide opinion, the colourful and enigmatic piece draws the eye upwards to the undoubtedly impressive fully-glazed roof.

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inside ouTside The interior of the mall has been designed to simulate an open-air feel.

CMY

shop Till you drop There are 370 stores and 60 F&B outlets in the Yas Mall.

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PROJECT PROFILE YAS MALL

At midday, the level of brightness is so intense that some visitors may feel the need to wear sunglasses. Araj explains that the team worked hard to eliminate reflections on the roof at night. “The big challenge is at night – the lighting was done by specialists, so hopefully reflections will be eliminated and you can actually see the sky. I don’t know how many stars you’re going to see in Abu Dhabi,” he laughs. Araj concedes that the downside of a glass roof is solar gain and an increased reliance on artificial cooling, yet says the glazing complies with Abu Dhabi’s sustainability programme, Estidama. “The skylight had to meet a U-value factor, and we used E-type glass. Thermal modelling was used at the start of design, and on-site we demonstrated the design intent conforms to the requirements for air leakages and U-values. It’s all calculated.” The building has in fact surpassed the

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mandatory one Pearl Estidama rating, gaining two Pearls. In addition to sourcing 20% of materials locally, 98-99% of the structural steel was recycled and wood came from sustainable forests. “We had an Estidama consultant that reviewed every single material that was used on the job,” says Araj. Another integral part of the mall’s design is the Italian Boulevard, an avenue connecting the mall to Ferrari World. “It’s a seamless connection between the theme park and the mall,” says Al Dhiyebi. “Together the two attractions will make one of the largest retail and leisure destinations in the world.” Given the prominence of the site and the supposed gap in the market, Al Dhiyebi says that 20 million visitors are expected to visit the mall in its first year. He explains: “Abu Dhabi has had a gap in terms of a mall this size with this offer. We are out to

compete and gain our share of the market. “Yes, there will be more visitors at the weekend and holidays, but even during the week it [is not] going to be empty. There is a lot of resident population nearby in Raha Beach and Khalifa City. Dubai is 40 minutes away. You don’t get a better location than this. It’s in the middle of an amazing island, like no other. “Yas Island is part of Abu Dhabi’s 2030 vision to be the leisure and entertainment destination. From the inaugural F1 race in 2009, we kept on increasing new assets every year – Ferrari World, Yas Beach, Yas Waterworld and recently the first residential element, which sold out. The evolution of the island will continue every year as we build this great destination. Yas Mall is the missing part of the puzzle.” Yas Mall won the Development of the Year award at the 2014 Big Project Middle East Construction and Sustainability Awards of Excellence.

“aldar didn’T wanT a replica of The oTher malls wiTh Their shiny, marble floors. iT wanTed To keep The finishes TacTile and iT did noT wanT To add much colour – ThaT’s why everyThing is pracTically whiTe” reTail desTinaTion 20 million visitors are expected to visit the mall in its first year of operation.

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M ARKET FOCUS BAHRAIN

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BAhRAin gets A Boost With large-scale retail developments in the pipeline and a second causeway to Saudi Arabia, Bahrain can expect to see renewed economic growth in coming years, Jerusha Sequeira reports

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istorically less wealthy than its GCC counterparts, the Kingdom of Bahrain has taken longer to find its feet after the global recession. However, with a few major upcoming developments and increased interest in its retail sector, the Bahraini economy can look forward to a significant boost, reports suggest. The retail sector in the Kingdom was probably the strongest performer last year, with the recent launch of ambitious developments like The Avenues, a $93 million waterfront project on Manama Corniche. Another major project

JANUARY 2015

expected to boost the retail sector is the $53 million Seef Mall Muharraq, a 70,000sqm development slated for completion by the end of 2014. There is also the much-anticipated Dragon City, a Chinese-themed development to be built on 115,000sqm of land with 55,000sqm of retail and wholesale area. Construction on the project began in April last year, and the mall is expected to be complete by the end of June 2015. According to real estate advisory firm CBRE, smaller-scale neighbourhood retail is yet to be serviced on a wide scale by retailers but is gaining popularity as

StatS n 115,000sqm – Size of the upcoming Dragon City project

n $5bn – Value of the King hamad Causeway, which will link KSA and Bahrain

n $93m – Value of The Avenues Bahrain project in Manama

developers recognise the risk of oversupply due to a growing number of mega-malls. Smaller scale retail developments include the 3,150sqm Segaya Plaza launched by Eskan Properties, which is fully let, and the Danat Al Madina in Isa Town, which has witnessed interest from retailers. Moreover, Cluttons predicts that the upcoming King Hamad Causeway, the second terrestrial link between Bahrain and Saudi Arabia, will significantly boost Bahrain’s residential, retail and industrial markets. Bahrain’s economy heavily relies on traffic entering the Kingdom from its larger and richer neighbour Saudi Arabia,

M ARKET FOCUS BAHRAIN

“TheRe is defiNiTelY A lARge sUpplY of commeRciAl pRoJecTs ANd sTRUcTURes iN The mARkeT, lARgelY becAUse TheY ARe AN iNTegRAl pART of The mAsTeR-plANs loANed oUT foR developmeNT”

pool of buyer demand. The longer-term ramifications for the residential market are too early to judge, but there will be an obvious long-term boost to the broader market with more traffic expected to flow into the Kingdom from Saudi Arabia.” According to Faisal Durrani, Cluttons’ international research and business development manager, “The Bahraini economy, which is still working to find its feet following the global downturn and unprecedented national tensions, will receive a tremendous boost from improved connectivity with the rest of the GCC. The Kingdom already serves

JANUARY 2015

MIDDLE EAST

via the existing 25km King Fahd Causeway. “The current causeway has been a significant contributor to growth in the economy. The announcement of a second connection to Saudi will no doubt boost the performance of the residential and retail markets further,” says Harry GoodsonWickes, head of Cluttons Bahrain. “We have recorded a steady rise in demand from Saudi nationals seeking to purchase weekend homes in Bahrain this year. In addition, the steady level of domestic housing requirements has prompted several developers to make a return to the market to capitalise on this growing

M ARKET FOCUS BAHRAIN

as a critical logistics hub for the central Gulf, and the new $5 billion King Hamad Causeway will further strengthen the attractiveness for logistics and industrial occupiers looking for additional hubs in the region aside from Dubai.” Goodson-Wickes adds that the retail sector will also see a boost from the new causeway, with weekend tourist traffic into the country, particularly from Saudi Arabia. “In fact, we are already seeing Chinese and other major regional and international brands seeking out space in retail developments such as The Lagoon and Alargan Village. This announcement will no doubt drive further interest in this exciting segment of the real estate market.” Despite the positive outlook for its retail sector, Bahrain’s office market looks bleak. Adversely impacted by oversupply, the country’s commercial property market suffers from “demand levels that remain close to record lows”, causing rents to fall in most submarkets during the first half of 2014 before stabilising in the third quarter of last year, Cluttons says. CBRE has also not recorded any improvements in the Kingdom’s office sector this year, due to the oversupply situation. Vacancy rates currently stand around 25% on average, with new developments close to completion, such as the United Tower and Al Baraka Bank Building at Bahrain Bay, to be added to existing prime office stock in the first half of 2015. “There is definitely a large supply of commercial projects and structures in the market,

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largely because they are an integral part of the master-plans loaned out for development,” says Stefan Burch, director of professional services for Knight Frank’s Bahrain and Saudi Arabia operations. “In my view, Bahrain’s commercial property segment is very elastic in its supply and potential supply, and it is a risk in my opinion.” The residential sector fared better in 2014, however, with rents remaining largely the same across Manama. Cluttons recorded no change in rents during the first three quarters of 2014, despite the weak economic environment, and they are expected to remain stable over the near to medium term due to a limited supply pipeline. Areas such as Juffair and Amwaj Islands are popular with US military employees and

“The ANNoUNcemeNT of A secoNd coNNecTioN To sAUdi will No doUbT boosT The peRfoRmANce of The ResideNTiAl ANd ReTAil mARkeTs fURTheR”

people new to Bahrain, the CBRE report says. “Amwaj Islands, which are considered as a ‘safer’ option, continue to attract local and foreign investors alike, as the area develops as an attractive community proposition with retail, hospitality and entertainment components already in place,” says Steve Mayes, director, Middle East Research, CBRE Bahrain. Burch agrees that Amwaj Islands are increasingly popular, adding that mixed-use developments will be the next big thing in the Kingdom. “Mixed-use developments appear to be the next big offering in Bahrain. Reef Island and Amwaj Islands are gaining traction in terms of attracting attention from buyers and investors,” he says. “Historically, Bahrain’s problem has been the lack of people and residents. But areas like Reef and Amwaj have responded very well to the demand from existing and new buyers; they provide more than just a place to live in. Bahrain has traditionally been a single-use development driven market, but developers are now realising that potential residents need to be offered ancillary developments and retail support as well.” Burch adds that it would be great for Bahrain if a mega event like the Expo or World Cup were held on its shores, but is positive about the Kingdom’s future. “Bahrain is yet to figure out a clear USP, perhaps, but if the activity on developments like Amwaj and Reef is any indicator, then Bahrain is set to grow into a mature market too.”

MIDDLE EAST

gRowiNg mARkeT Although Bahrain is yet to figure out its USP, activity on developments is a good indication of its growth.

JANUARY 2015

SPECIAL FOCUS EDUCATION

bigprojectMe.COm

Bridging the skills gap

The GCC is facing a skills shortage if educational institutions don’t turn out graduates well-equipped for the workforce. Jerusha Sequeira speaks to academics to find out how to solve this growing problem

t’s no secret that the construction industry is taking off in the GCC, with member states scrambling to outdo each other with big-budget mega projects. But what isn’t grabbing headlines is the region’s education sector, which often draws flak for not offering high quality education. What this means for construction companies in the GCC is that there is a lack of locally trained and qualified talent to meet the needs of this manpowerintensive industry. It’s easier for most firms to simply hire workers from overseas, as can be witnessed by the high expat population in the Gulf states. One of the contributing problems is a disconnect between academia and industry, with many employers in the region feeling that educational institutions do not adequately prepare students for the workforce. According to a report entitled Perspectives on GCC Youth Employment released by Ernst & Young this year, only 29% of employers feel that students in the region are prepared with necessary technical skills, while a paltry 16% believe that education equips students with the

MIDDLE EAST

“Many faculty MeMbers have never worked with industry. they live in an ivory tower. they don’t effectively introduce the new technologies, [and] they lose their students”

JANUARY 2015

specific or core skills required in their industries. More government investment and corporate participation is sorely needed in the GCC’s education sector, to address skills shortages in industries like construction, experts tell Big Project ME. “Today, public spending on education in many countries in the region remains below 3% of GDP,” says Elias Bou Saab, Lebanon Minister of Education and executive vice president of the American University in Dubai (AUD). “It should be our priority to allocate more resources to K-12 schools and higher education institutions to ensure a competitive edge for our future generations,” Saab adds, addressing an audience at the World Engineering Education Forum (WEEF) 2014. Dr Alaa Ashmawy, dean and professor of Civil Engineering at AUD, agrees that more GCC spending on education is the need of the hour. “It varies from country to country, but I think overall investment in education is an investment that is never lost. When you educate people, they will remain educated,” Ashmawy says. resource allocation More resources should be allocated to K-12 schools and higher education institutions as a matter of priority, the panel says.

“Education is something that is fundamental, and investing more in it is certainly needed.” Apart from government spending, Ashmawy also calls for the corporate world to play a more active role in the education sector in order to address the skills shortage in the workforce, particularly for construction. “If companies can partner with universities to make sure that we have programmes that serve the construction sector and for the construction sector to feed talent into the university, we’re going to break that barrier. The challenge right now is that a lot of the construction companies, they would rather recruit talent from overseas. They don’t want to spend time educating engineers on their workforce. They’d rather import them. It is a challenge. “It is changing and we’re seeing more and more companies, but it requires a lot of effort on both parts. But we’re working on this and we’re seeing the change. “A lot of companies now are more aware of the need to invest in local talent, the need to train the local workforce, because the problems

SPECIAL FOCUS EDUCATION

are different. You can get the best engineers from Canada and Australia and Russia, but they will not be able to solve the problems that are pervasive in the region here.” Although AUD and other universities offer construction management programmes, universities struggle to find the right students too, he points out. “The key challenge is on the students’ side, trying to juggle their schedules and their priorities. A lot of people come here with the intent to work and earn a living, and are under a lot of stress in terms of time. And so it is a challenge for many universities in the region here trying to recruit students who are willing to learn.” Another issue universities have to cope with is keeping pace with rapid advances in technology, says Dr Hans Hoyer, executive secretary of the Global Engineering Deans Council. Hoyer blames this on the tenure system in universities, which makes professors complacent about teaching methods and fail to stay up-to-date with changing technologies. “Many faculty members have never worked with industry. They live in an ivory tower. They don’t know the new technologies, they don’t effectively introduce the new technologies, [and] they lose their students because they do traditional lecturing,” Hoyer says. “The new generation will be much more agile, much more competent to use the new technologies that my generation is having great difficulty adjusting to.” In order to increase the number of qualified professionals in engineering and construction, the academics also stress the need to start early to promote interest in STEM (science, technology, engineering and mathematics) fields. “We know exposing youngsters as early as possible to some of those concepts is critical,” Hoyer

says. “We must emphasise quality STEM education, especially at the elementary and high school level, to ensure that high school graduates are universityready,” Saab tells the audience at the forum. Saab also calls on the public and private sectors to invest in providing more merit-based scholarships to bright students, citing AUD’s scholarship programme as an example. “I challenge government and industry leaders present here today to invest in similar initiatives with educational partners at the local, regional or international level. And in order to succeed, these initiatives have to have no strings attached, except equity in education and investment in future generations.” Additionally, it is crucial to ensure that future engineers are equipped with more than just technical know-how for today’s marketplace, experts say. “We must encourage our students to develop soft skills along with their technical knowledge to ensure a

foruM opening HE Eissa Al Maidoor, president of the UAE Society of Engineers and director general of the Dubai Health Authority, opened the forum.

competitive edge at the global level,” Saab says. Hoyer echoes the minister’s comments. “There’s a tremendous discussion going on globally, focusing on what’s being called the attributes of a global engineer. So to be a global engineer effective in different environments requires more than simply the narrow technical expertise. It needs you to be able to work in multicultural teams, you need to have business skills, you need to have communication skills, and hopefully also more than one or two languages, skills that go beyond the technical,” he says, adding that he dislikes the use of the term ‘soft skills’. “To have human skills and have emotional intelligence I find critically important,” Hoyer says. Despite the challenges, Ashmawy remains positive that the future of education in the GCC is bright. “It has only one direction to go, and that is up,” he says. “It is improving, certainly, but there is a long way to go.”

GCC states Invest $90 bIllIon on eduCatIon-related ConstruCtIon In 2014

$56 billion $2.6 billion Saudi Arabia

UAE

$7.2 billion

$6.8 billion

Qatar

Oman

GCC governments are expected to spend more than $90 billion on building schools and universities in 2014, according to a Ventures Middle East report in October, making the education sector one of the biggest for contractors and suppliers in the region. Saudi Arabia was the biggest spender on

$10.5 billion $2.2 billion Kuwait

Bahrain

education, with $56 billion invested in building 465 new schools and refurbishing another 1,500. GDP per capita income in the region is estimated to increase from $45,184 in 2011 to $51,286 in 2016, the report said, leading to a “willingness to spend on education, especially for private sector education”.

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MIDDLE EAST

education investMent Elias Bou Saab, Lebanon Minister of Education, says public spending on education in many regional countries is below 35% of GDP.

“it should be our priority to allocate More resources to k-12 schools and higher education institutions, to ensure a coMpetitive edge for our future generations”

EvEnt REviEw BIM LeadershIp ForuM

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man in charge Dubai media personality Tom Urquhart was the MC for the event.

MIDDLE EAST

knowledge is power Robert Green told delegates that they needed to educate their companies about BIM if they wanted to see it adopted by them.

JANUARY 2015

EvEnt REviEw BIM LeadershIp ForuM

eVenT REVIEW

smarT processes BIM is not just a tool for design and build, Lynn Allen told delegates.

BIM LeadershIp ForuM

Big Project Me and autodesk host delegates froM the regional construction industry for an eye-oPening discussion on BiM the BiM Leadership Forum hosted some of the foremost experts in BiM technology, each sharing viewpoints and experiences with the delegates, allowing them to question and discuss the merits and challenges associated with the technology. Kicking off the event was Lynn Allen, an Autodesk ‘technical evangelist’ and author, who spoke to delegates about the importance of implementing the processes needed to succeed with BiM adoption. “BiM is a smart process, not just a tool or a software,” she said, explaining that companies needed to adopt policies from the top down,

so as to ensure a successful roll-out. “in two years, if you’re not proficient with BiM, you will need to win double the amount of nonBiM projects, just to stay at the same level you are. By then, 50% of rFPs in architecture, engineering and construction will require BiM.” Allen was followed on stage by robert Green, author of expert cAD Management: the complete Guide and a consultant who operates throughout the usA and canada. he started his talk by telling the assembled delegates that “people fear what they do not understand”, highlighting one of the crucial issues facing BiM adoption in this region.

“in Two years, if you’re noT proficienT wiTh Bim, you will need To win douBle The amounT of non-Bim projecTs, jusT To sTay aT The same leVel you are”

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MIDDLE EAST

As the construction landscape in the Gcc undergoes a radical and rapid change, spurred on by dramatic investment in megaprojects, the need for clear thinking, communication and coordination is increasingly important. Keeping this in mind, Big Project ME and Autodesk organised an exclusive gathering for the Gcc construction industry at the third edition of Autodesk university extension Dubai on December 17, 2014. held at the sheikh Maktoum hall in Dubai World trade centre, the BiM Leadership Forum brought together more than 50 delegates from around the region to hear how BiM technology will shape the way they go about their business, now and in the future. Following the introduction of the BiM Mandate by the Dubai Municipality, some construction firms are scrambling to get up to speed with the intricacies of the technology, while others are already well-versed in its capabilities and have been using it for quite some time. therefore,

EvEnt REviEw BIM LeadershIp ForuM

While savvy construction professionals are training themselves on how to best use BiM and are embracing the power of the technology, it is usually under their own steam. A common roadblock is that upper management and decision-makers often don’t understand its capabilities, or indeed the difficulties of implementing it across the board, Green explained. “Make sure that upper management understand what it takes to implement BiM,” he told delegates. the next session at the forum was a lengthy panel discussion between representatives of companies and organisations who have been pioneers of BiM implementation in the region. the panel consisted of Ahmed Balawi, BiM lead at Arabtec construction; David Wilcox, civil BiM lead at Bechtel; chris tebb, project manager at Mott Macdonald; and tim shelton, head of Project strategy at Meraas holding. Moderating the discussion was Jon Pittman, vice president of corporate strategy for Autodesk. “one of the things we’re acutely aware of at Meraas is that a lot of the supply chain is struggling at the moment. We’re realising that they may not be able to do what we want to achieve. [however], we see that almost as an opportunity to take the lead in a lot of ways,” said tim shelton. “the way that we’re attempting to do that is by using recognised standards and also looking at the implementation challenges and putting together something in collaboration with the supply chain. supply chain collaboration is absolutely key at this point of maturity for BiM in the region.” Ahmed Balawi concurred with this viewpoint, highlighting the role the British government

“supply chain collaBoraTion is aBsoluTely key aT This poinT of maTuriTy for Bim in The region”

played in implementing the BiM mandate. “it is interesting [to see Meraas taking the lead]. i’ve seen the maturity of the British government with such a process and i’m glad to hear about Meraas. that is one of the important maturity processes that will help BiM reach the required level. these are the real drivers [of BiM growth] and is the right way for us to know exactly what is wanted by developers and government bodies,” he pointed out. “trying to implement BiM within the current processes, as a cosmetic implementation, doesn’t add value. understanding the client, and having them understanding the benefits of BiM, will guide the project stakeholders and will enable everyone to save money. “that is what we’re looking for. But unfortunately, we don’t see enough of it. We’re starting to see a very strong maturity level amongst consultants, and they’re working with the main contractors, but take it beyond the integrated engineering level and it becomes a

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little bit more challenging,” Balawi added. the panel discussion continued to provoke lively debate over the course of the session, with participants examining the intricacies of BiM implementation for construction companies in the Gcc. they also took questions from delegates, highlighting the willingness of the industry to embrace BiM. Finally, the last session of the day was presented by elizabeth Peters, an associate director at AecoM and the head of its uAe BiM centre. she gave a presentation entitled: ‘the District saadiyat: A case study on the Present and Future state of BiM in the Middle east’. As part of her presentation, she showcased how BiM is being used on this megaproject, which has “dozens of organisations” working together to deliver the project on schedule and on budget. she also used her own personal experiences on the project to illustrate how coordination on a project can improve if the stakeholders are willing to buy into the BiM processes. “it’s really important to have a common understanding. it’s been a fantastic experience. there’s been some fantastic team commitments made for this project,” Peters told delegates. “[however], there are still challenges. this is a design, bid, build job, so the contractual relationships between everybody on this project still remain in place. that causes some challenges when it comes to ownership, when it comes to disclosure, when it comes to people not understanding how much you need to go into detail and manage the information exchange when it comes to models. But it has also been a fantastic working experience,” she reiterated.

MIDDLE EAST

panel discussion The panel discussion saw four of the leading BIM experts in the region debate and discuss the implementation of BIM in the GCC.

JANUARY 2015

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COMMENT nivine issa

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nivine issA

Challenges and Opportunities of Sustainable Development in the Middle East Nivine Issa, sustainability consultant at AESG, outlines the challenges and opportunities in sustainable development in the Middle East

hen they encounter the term 'sustainable development', industry professionals go back to the definition provided by the United Nations World Commission on Environment and Development: “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” At this point in time, in a world where a significant portion of the population still lives in poverty, consumption patterns have doubled, and environmental pollution is on the rise, living sustainably is imperative. The construction industry, as one of the most polluting sectors, offers significant opportunities to alleviate environmental pollution and overconsumption of resources. The Middle East, with its growing population and improved tourism, has increasing demand for infrastructure and development. Total construction projects in 2013 in the GCC alone were worth an estimated $1.67 trillion, with Saudi Arabia and the UAE accounting for more than 68% of that. With great opportunities come great responsibilities, and as the world is moving towards more sustainable systems, the Middle East has been trying but struggling to excel

MIDDLE EAST

“All in All, the Middle eAst is proMising ground for eMbedding sustAinAbility in the process of urbAn developMent, but we Must reMAin focused And driven to reAlly creAte chAnges”

JANUARY 2015

due to underlying economic, political, social and technical difficulties. This article analyses the challenges and opportunities that Middle Eastern countries face, demonstrating major achievements and examining difficulties. Green BuildinG Codes

Following international building guidelines like LEED and BREEAM, Middle Eastern countries have initiated the development of their own green building codes, tailored to their unique environments and market needs. Qatar's Global Sustainability Assessment System (GSAS) was one of the first green building rating systems in the Middle East, published in 2009. GSAS was developed by the Gulf Organisation for Research and Development (GORD) to promote sustainable practices in the construction industry of Qatar and the region. The code was developed after reviewing green building regulations around the world. GSAS sustainability criteria are grouped in eight categories: Water, Energy, Indoor Environment, Cultural & Economic Value, Site, Urban Connectivity, Material, and Management & Operations, with the most weight on energy and water, based on the country’s main sustainability challenges. Abu Dhabi has pioneered the effective development and implementation of green building codes. With the birth of the Pearl Rating System, managed by the Abu Dhabi Urban Planning Council, Abu Dhabi published its green building code for Buildings, Villas and Communities. The code was developed to promote the efficient use of resources, reflect the city’s specific needs and complement Plan 2030.

COMMENT nivine issa

code successes Despite implementation challenges, the introduction of green codes in the Middle East is viewed as a success.

The main aim of these regulations is to improve the performance of buildings in Dubai by reducing the consumption of energy, water and materials. Dubai Municipality does not provide different tiers of certification, but rather presents a set of regulations and guidelines for all buildings to follow. aChievements and opportunities

While there are challenges in embedding sustainability in the construction sector, these codes and rating systems have in general been notable successes and demonstrate the important role of the public sector in driving sustainable building practices. The United States Green Building Council recently released a report identifying the top 10 nations implementing the LEED rating system outside the US. The UAE ranked ninth, demonstrating private sector initiatives from developers and

architects in the UAE who implement sustainable approaches on their projects. Similarly, Kuwait plans on achieving LEED Gold certification for the new passenger terminal at Kuwait International Airport. The innovative design will incorporate major use of solar power. Another landmark project is the Masdar Headquarters in Abu Dhabi, which recently achieved a 4-Pearl Estidama PBRS Rating, with 40% energy savings through passive design and energy-efficient technologies. These projects are examples of sustainable practice in the Middle East, showcasing the increased level of sustainability awareness in the region. Corporate soCial responsiBility & sustainaBility

An emerging trend, particularly in medium to large corporations in the Middle East, has been the integration of sustainability in the

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MIDDLE EAST

Estidamaâ&#x20AC;&#x2122;s sustainability criteria are grouped in seven categories: Integrated Development Process, Natural Systems, Liveable Villa/Building/ Community, Precious Water, Resourceful Energy, Stewarding Materials, and Innovating Practice. Furthermore, the Lebanese Green Building Council (LGBC), a non-profit NGO founded in 2008, developed the ARZ rating system in collaboration with the IFC (International Finance Corporation) in 2012. ARZ incorporates international environmental standards and focuses on energy and water conservation, responding to Lebanonâ&#x20AC;&#x2122;s unique conditions. However, with little sustainability awareness in the country, rampant political instability, and because the rating system is not mandatory, few projects have been certified. Meanwhile, Dubaiâ&#x20AC;&#x2122;s own green building code, the Green Building Regulations, was released by the Dubai Municipality in 2011.

COMMENT nivine issa

bigprojectMe.com

green strAtegies Strategies for green procurement, energy and water conservation and community engagement have recently emerged.

CSR strategy. Despite CSR being fairly new to the region, corporations in the Middle East have correlated sustainability to already existing programmes such as healthcare and education, evidenced by widespread regional participation in the Arabia CSR Awards. In recent years, strategies for green procurement, energy conservation, water conservation and stakeholder and community engagement have emerged, driving sustainability within organisations from a corporate governance perspective. ChallenGes and Constraints

MIDDLE EAST

Despite the vast opportunities in the Middle East to invest in sustainability, the region has demanding conditions. From natural constraints to man-made challenges, Middle Eastern countries face significant challenges in implementing sustainable development. A major natural challenge in the region is the scarcity of water, with only 1% of the world’s available fresh water and a hot, dry climate. Furthermore, steep population growth and consequent environmental degradation hinder the move towards a greener portfolio. Another challenge is awareness. Fortunately, the region is blessed with high levels of education, with a large proportion of people pursuing secondary and higher education. According to the UNDP's 2014 Human Development Report, only four countries in the Middle East are low on the Human Development Index (HDI): Egypt, Palestine, Syria and Yemen. The HDI is an

JANUARY 2015

indication of education, life standard, quality of life, literacy, life expectancy and overall welfare. Unfortunately, human development and natural wealth do not necessarily correlate with high interest in sustainability. Jordan and Lebanon, for example, have high HDIs but their primary focus is tourism, which contributes to GDP but often has a negative impact on sustainable development. Moreover, the region has long suffered from political instability and the subsequent financial burden; people seem to lean towards the concept of “I’d rather die from pollution than in a war”, which is a paradigm faced by some governments in the region when implementing sustainable development. Overconsumption patterns form another challenge for countries with very high HDIs,

“with greAt opportunities coMe greAt responsibilities, And As the world is Moving towArds More sustAinAble systeMs, the Middle eAst hAs been trying but struggling to excel”

such as Saudi Arabia, the UAE and Qatar. Even though awareness levels are higher than in other countries, consumption in the Gulf States is among the world’s highest. For instance, reports say the UAE’s water consumption is 550 litres/person/day, which significantly exceeds the world average. Lastly, while there have been notable successes in the region with the implementation of green building codes and rating systems, dealing with building stock constructed before these codes came into force is a big challenge. Retrofitting existing buildings to be more energy- and water-efficient has proven to be a financially lucrative investment, reducing operating costs within a short payback period. Despite this, barriers to the widespread implementation of retrofit programmes include awareness and availability of financing. Significant strides are being taken in this field in Dubai, with the establishment of a comprehensive framework by the Dubai Supreme Council of Energy to encourage energy-efficient retrofitting. Widespread implementation is crucial if the region is to move toward sustainable development, and it is hoped that the initiatives in Dubai will lead to further programmes throughout the region. end notes

Middle Eastern countries have throughout history been resilient in the face of challenges, as they are showing in the realm of sustainable development. While the concept is still new in the region, a number of Middle Eastern states have shown tremendous progress, through both public sector efforts and private sector initiatives. However, much more is needed. The region still has a long way to go. A harmonious approach towards the reformation of green building codes in the Middle East, with consistent baselines for energy, water and the environment, would be a step forward. Likewise, increasing awareness levels and reducing consumption are critical to sustainable development. All in all, the Middle East is promising ground for embedding sustainability in the process of urban development, but we must remain focused and driven to really create changes in behaviour, toward sustainable consumption and production. n Nivine Issa is a sustainability consultant with the Alabbar Energy and Sustainability Group. She can be reached at: n.issa@aesg-me.com

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Authority (Saudi Arabia) PostAl/ZIP code 94501 PhoNe (+966-1) 488 3331 FAx (+966-1) 482 9331 emAIl info@arriyadh.com WebsIte www.ada.gov.sa descrIPtIoN Operation and maintenance of a new 83-kilometre-long bus rapid transit system in Riyadh stAtus Current Project

Budget $12,000,000,000 Project Number BPR630-e reGIoN Suez, egypt clIeNt Suez Canal Authority (egypt) Address Suez Canal Building PhoNe (+20-66) 333 1952 descrIPtIoN development of a canal that will include a 72-kilometre-long parallel waterway and a 76,000 square metre industrial zone and logistics hub stAtus Current Project

Project raS al hadd touriSm ProjeCt develoPmeNt

Project the Palm Gateway & Car Park Podium CoNStruCtioN

Budget $650,000,000 Project Number BPR649-O

reGIoN Lusail, Oman clIeNt Qatari diar Real estate Investment Company (Qatar) Address Qatari diar Visitors Center PostAl/ZIP code 23175 PhoNe (+974) 4497 4444 FAx (+974) 4497 4333 emAIl info@qataridiar.com WebsIte www.qataridiar.com descrIPtIoN development of an eco-theme project covering an area of approximately 1.848 million square metres stAtus New tender

Project SuGar FaCtory ProjeCt Budget $550,000,000 Project Number MPP2327-e reGIoN dubai, united Arab emirates clIeNt Al ghurair group (dubai) Address Al ghurair Bldg., Salahuddin Road, deira PostAl/ZIP code 1 PhoNe (+971-4) 262 3377 FAx (+971-4) 262 3388 emAIl info@alghurairgroup.ae WebsIte www.al-ghurair.com descrIPtIoN Construction of a new sugar factory with estimated production capacity of 400,000 tonnes a year of refined sugar stAtus New tender

Budget $817,000,000 Project Number dMS 141324 reGIoN dubai, united Arab emirates clIeNt Nakheel PJSC (dubai) Address Jebel Ali PostAl/ZIP code 17777 PhoNe (+971-4) 390 3333 FAx (+971-4) 390 3314 emAIl info@nakheel.ae WebsIte www.nakheel.ae descrIPtIoN Construction of three towers on an existing car parking podium (1 basement and 14 floors), including a beach club, retail,

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Project Number WPR480-u reGIoN dubai, uAe clIeNt emaar Properties PJSC Address emaar Business Park, Bldg. No. 3, Near Interchange No. 5, Shaikh Zayed Road PostAl/ZIP code 9440 PhoNe (+971-4) 367 3333 FAx (+971-4) 367 3000 emAIl customercare@emaar.ae WebsIte www.emaar.com descrIPtIoN Construction of a 50-storey twin tower comprising one-, two- and threebedroom residential apartments, including townhouses stAtus New tender teNder cAteGorIes Leisure & entertainment, Prestige Buildings teNder Products High-rise towers, Residential Buildings, Retail developments

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Project Number MPP1905-u reGIoN dubai, uAe clIeNt Nakheel PJSC (dubai) Address Jebel Ali

QAtAr dohA oAsIs mIxed-use Project

PostAl/ZIP code 17777 PhoNe (+971-4) 390 3333 FAx (+971-4) 390 3314 emAIl info@nakheel.ae WebsIte www.nakheel.ae descrIPtIoN Construction of a shopping mall comprising 200 retail units, a multi-screen cinema and a variety of dining outlets, including a food court PerIod 2017 stAtus New tender mAIN coNsultANt dar Al Handasah (Shair & Partners) - dubai desIGN coNsultANt dar Al Handasah (Shair & Partners) teNder cAteGorIes Construction & Contracting, Leisure & entertainment teNder Products Retail

omAN yIbAl rejuVeNAtIoN oFF-Plot Project budGet $200,000,000 Project Number MPP2958-O reGIoN Muscat 113, Oman clIeNt Petroleum development Oman (PdO) Address Mina Al Fahal Street PostAl/ZIP code 81 PhoNe (+968) 2467 8111 FAx (+968) 2467 7106 emAIl external-affairs@ pdo.co.om WebsIte www.pdo.co.om descrIPtIoN engineering, Procurement and Construction (ePC) contract to build facilities at an onshore oil field stAtus New tender

Project Number WPR481-Q reGIoN doha, Qatar clIeNt Halul Real estate Investment Company (Qatar) PostAl/ZIP code 24336 descrIPtIoN Construction of 14 ninestorey buildings featuring penthouses and 245 apartments, including a mixed-use podium comprising housing, retail outlets and one of the largest indoor amusement theme parks, a 7-star hotel consisting of 28 floors, six restaurants, a gymnasium, indoor pool and business centre stAtus Current Project mAIN ArchItect Nabil gholam Architecture & Planning (Lebanon) meP coNsultANt design engineering Partners (Lebanon) Project mANAGer Faithful & gould (Qatar) mAIN coNtrActor Redco Construction - Almana (Qatar) meP coNtrActor Qatar electro Mechanical group (QeMg) sPecIAlIst coNtrActor

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bAhrAIN mIxed-use toWer Project - West bAy budGet $275,000,000 Project Number WPR421-Q reGIoN doha, Qatar clIeNt Qatar Industrial Manufacturing Company (QIMCO) PostAl/ZIP code 16875 PhoNe (+974) 4483 1199 FAx (+974) 4483 7878 emAIl qimco@qatar.net.qa WebsIte www.qimco.com descrIPtIoN Construction of a mixed-use tower planned for hospitality, commercial and residential use PerIod 2018 stAtus New tender mAIN ArchItect Arab engineering Bureau (Qatar)

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IrAQ bAZyAN INdePeNdeNt PoWer Project Project Number MPP2952-IQ reGIoN erbil, Iraq clIeNt Qaiwan group (Iraq) Address 4th Floor, Sulaymaniyah Mall PhoNe (+964-53) 319 0248 emAIl contact@qaiwangroup.com WebsIte www.qaiwangroup.com descrIPtIoN Construction of a simple-cycle Independent Power Project (IPP) with capacity of 750MW PerIod 2016 stAtus Current Project mAIN coNtrActor enka (turkey) Specialist Contractor general electric International - ge (uSA) teNder cAteGorIes Power & Alternative energy teNder Products Independent Power Plants (IPP)

Project Number BPR652-B reGIoN Manama, Bahrain clIeNt diyar Al Muharraq W.L.L (Bahrain) PostAl/ZIP code 5070 PhoNe (+973) 7733 3444 FAx (+973) 7733 3445 WebsIte www.diyarhomes.bh descrIPtIoN Construction of a residential complex comprising five multi-storey buildings offering a total of 300 apartments PerIod 2015 stAtus Current Project mAIN coNtrActor Bin Faqeeh Real estate Investment Company (Bahrain)

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Premier Rides (uSA) FouNdAtIoNs, eNAblING & PIlING coNtrActor Ammico Contracting Company (Qatar) teNder cAteGorIes Construction & Contracting, Hotels, Leisure & entertainment, Prestige Buildings teNder Products Hotel Construction, Residential Buildings, Retail developments, theme Parks development

Project Number MPP2941-K reGIoN Ahmadi 61008, Kuwait clIeNt Kuwait Oil Company (KOC) PostAl/ZIP code 9758 PhoNe (+965) 2398 9111 FAx (+965) 2398 3661 emAIl kocinfo@kockw.com WebsIte www.kockw.com descrIPtIoN engineering, Procurement and Construction (ePC) contract to build a Crude Oil gathering Centre stAtus New tender Feed coNsultANt Foster Wheeler energy Ltd. (Kuwait) teNder cAteGorIes gas Processing & distribution, Oilfields & Refineries teNder Products Crude

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lee barry

Dispute Education Lee Barry outlines some of the best ways to engage experts in the event of arbitration

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Since the global credit crisis in 2008 and 2009, the Middle east has seen a large increase in the number of disputes referred to arbitration. there are many key decisions both parties need to consider when referring the matter to arbitration. For example, which disputes should be referred? Which legal team (lawyers and counsel) should be engaged and should claims support services be utilised? Which experts are required and at what stage? the discipline of the experts that need to be engaged will depend heavily on the nature of the disputes and also, to some extent, on the experts employed by the opposing party. experts can cover general issues such as delay, quantum, architectural, accounting, property revenue, project management and design, as well as specialist issues such as lift performance. Your legal team will be able to provide you with details of the types of experts you are likely to need to engage. there are no fixed rules to state when you need to appoint an expert, except maybe the timetable for submission set out by the tribunal in accordance with article 2 of the iba Rules. Most appointments happen at one of these stages: prior to entering into

JANUARY 2015

the arbitration; after initial pleadings; or after all pleadings have been submitted. in our opinion, engaging an expert early (i.e. at or prior to the start of the dispute) is the most advantageous option. it reduces the need for repeat work, reduces costs and often results in an early settlement of the dispute. however, this option is subject to ensuring all parties maintaining the expert’s independence. the choice of expert(s) is very important and may be fundamental in obtaining a positive outcome to the arbitration. here are some pointers to consider: Firstly, ensure your expert has experience

“you should not be afraid to question the opinion of your expert as he will certainly be questioned under cross-examination”

and knowledge of the issues in dispute. next, make sure your expert has worked in, or in a similar region/market to where the dispute has occurred. always consider the expert’s personal preference for analysis, e.g. ‘as-planned versus as-built’ method. if you have not used the expert before, then you may consider a ‘beauty parade’. You should also review the expert’s experience under cross-examination and consider the expert’s relationship with your legal teams, other experts, opposing experts and the tribunal. all experts must act independently with their overriding responsibility solely to the tribunal (see article 5 of the iba Rules). it is essential that you allow your expert to provide his option, within the limitations of its instructions, without demanding he supports your case regardless of the evidence or lack thereof. that being said, providing further and better particulars (as long as admissible by the tribunal) may result in a different opinion by either expert. Meetings between the expert, the party and the party’s legal team are essential to ensure all documents have been considered and to resolve any misunderstandings. Finally, you should not be afraid to question the opinion of your expert, as he will certainly be questioned under cross-examination. Lee Barry is a quantum expert for DIALES Expert Services, a branch of Driver Group PLC

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Putzmeister Concrete Pumps GmbH · 72631 Aichtal · Germany · www.putzmeister.com Putzmeister Middle East · Jumeirah Lakes Towers (JLT) · Swiss Tower · Office 1403 · P.O. Box 262657 · Dubai, U.A.E. Tel: +971 (0) 4 454 27 83 · Fax: +971 (0) 4 454 27 82 For inquiries: (General) Jens Bawidamann, Regional Director E-Mail: BawidamannJ@pmw.de Mobile: +971 (0) 52 6700053 2855 GB

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(Bahrain, Kuwait, Saudi Arabia) Bastian Dreher, Sales & Project Manager E-Mail: DreherB@pmw.de Mobile: +971 (0) 52 6700056

(Oman, Qatar, U.A.E.) Derong Li, Sales & Project Manager E-Mail: LiD@pmw.de Mobile: +971 (0) 52 6700058