Big Project ME May 2018

Publication licensed by Dubai Production City

146

MAY 2018 meconstructionnews.com

THE BUSINESS OF CONSTRUCTION

“Our philOsOphy is tO think Outside the bOx – we always believe that we can Outwit the cOmpetitiOn” Shiraz haSan, ceo of tech group, revealS how the ajman-baSed conStruction conglomerate iS Shaking up the eStabliShed order

Contents

Issue 146 May 2018 09

16

18

26

34

39

16 Hitting Bottom

36 Out on the Green

06 MEConstructionNews.com OnlIne

The biggest stories from Big Project Middle East’s home on the web

analysIs

Faisal Durrani and Edward Carnegy examine the Abu Dhabi real estate market

eVenT reVIew

Recapping the events of the day at the Big Project ME’s Golf Day – Contractors Cup

08 Emaar and ARADA partnership 18 Tech Group Developers agree to develop three new hotels in Aljada mega project in Sharjah

Big Project ME speaks to Shiraz Hasan, CEO of Ajman’s Tech Group

39 Cityscape Abu Dhabi

12 INA to open in October 2018

26 Gateway to the Marina

40 Top Tenders

The bIg pIcTure

InTernaTIOnal news

Istanbul New Airport on track to open in October 2018, with construction work at 80%

In prOfIle

sITe VIsIT

Big Project ME returns to the Marina Gate project, which is being built by ALEC

14 Abu Dhabi Residential Snapshot 34 Myth or Reality?

MarkeT repOrT

Core Savills report examines market performance, drivers and deterrents for Abu Dhabi residential real estate market in 2018

sMarT aIrpOrTs

Dimitris Kitsios and Paul Davies of Parsons look at how airports can improve performance and efficiencies by adopting smart technology

shOw reVIew

Big Project ME provides a snapshot of the action at Cityscape Abu Dhabi 2018 Tenders

Big Project ME lists the Middle East’s biggest construction tenders for May 2018

44 The Science of Green Cooling lasT wOrd

Johan Samuelsson explains how HVAC systems and manufacturers are embracing green concepts to improve efficiency ratings May 2018 1

© 2018 LACASA Architects & Engineering Consultants All Rights Reserved

Sr. FF&E DESignEr I’m Nadin Alkayyali and I am a

www.lacasa.ae

My role is to advocate for better quality materials One of the biggest challenges within any project is ensuring that the materials and finishes selected are translated well from drawings to constructed spaces. Often, clients opt for lower quality finishes at the construction phase as a cost-saving measure. As an FF&E Designer, my role is to advocate for better quality materials while providing a higher value. My selections take into account a plethora of factors including the nature of the space, the authorities’ standards, and the environmental conditions.

Nadin Alkayyali Sr. FF&E Designer

LACASA is committed to providing quality-driven designs within a multidisciplinary environment.

Established in 2006, the firm has grown significantly over the past eleven years. Today, LACASA boasts a diverse portfolio encompassing all types of developments and across the entire MENA region.

While it is said that perfection doesn’t exist, we believe that perfecting design can be achieved by cultivating extraordinary talent.

Introduction

Diversify to survive

T

hree years ago, I conducted a site visit to the Marina Gate project in Dubai Marina. Back then, construction hadn’t advanced more than a few floors off the ground for Marina Gate I, while the groundwork was being carried out for Marina Gate II. Given how far the project has come since then, it was nice to be invited back to the site and see first-hand the fantastic job that the team has done, especially with Marina Gate I now fully complete and residents moving in and taking ownership of the flats.

With Marina Gate II now topped out, and work ongoing on the façade and internal works, it was interesting to see how ALEC is adapting to the various challenges it’s facing on-site.

In our cover interview this month, we speak to Shiraz Hasan, the CEO of Tech Group, an Ajman-based construction conglomerate that has been making quite a lot of interesting moves recently. Having undertaken a hiring spree that has seen it recruit some top-class talent, Hasan and his team are planning to take the next step into the much larger Dubai market.

Given the level of competition that already exists, and the challenges that any newcomer would face, this would seem like a bold move, but having visited their facilities and spent the day in Ajman, I wouldn’t be too surprised if they made it a success.

With developers increasingly looking to cut costs and improve efficiencies, having contractors that offer a raft of solutions under one roof is quite an attractive proposition. It’s certainly one that attracted Sharjah Oasis Real Estate Company, which appointed Tech Group to the $6.5 billion Sharjah Waterfront City off the

4 May 2018

GROUP MANAGING DIRectOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5471 eDItORIAL DIRectOR VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472 eDItORIAL eDItOR GAVIN DAVIDS gavin.davids@cpitrademedia.com +971 4 375 5480 SUB eDItOR AELRED DOYLE aelred.doyle@cpitrademedia.com ADVeRtISING cOMMeRcIAL DIRectOR JUDE SLANN jude.slann@cpitrademedia.com +971 4 375 5714 DeSIGN ARt DIRectOR SIMON COBON simon.cobon@cpitrademedia.com

back of its entire offering as a group.

I suspect we’ll be seeing more developers follow suit, and I think it’s going to become a necessity for contractors to have a diversified offering if they want to stay in business, as it’s simply becoming too expensive to hire specialists for every aspect of a project.

Finally, I’d like to provide an update on the Value Engineering Summit, which has now been moved to September 5, 2018, and will be held at Habtoor Grand Hotel. I’ll be reaching out to the industry to finalise topics of discussions and talking points. As part of that, I would encourage those of you interested in being a part of the VE Summit to get in touch and share some ideas!

DeSIGNeR PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOtOGRAPHY MAkSYM PORIECHkIN MARKetING MARKetING MANAGeR SHEENA SAPSfORD sheena.sapsford@cpitrademedia.com +971 4 375 5498 cIRcULAtION & PRODUctION DIStRIBUtION MANAGeR SUNIL kUMAR sunil.kumar@cpitrademedia.com +971 4 375 5476 PRODUctION MANAGeR VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 WeB DeVeLOPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI FOUNDeR DOMINIC DE SOUSA (1959-2015) PRINteD BY ALALEf PRINTING PRESS LLC PUBLISHeD BY

Licensed by TECOM to registered company, CPI Trade Publishing fZ LLC whose registered office is 207 – 209, Building 3, Dubai Studio City, Dubai, UAE

Gavin Davids editor gavin.davids@cpitrademedia.com @MecN_Gavin

www.cpitrademedia.com © Copyright 2018 CPI Trade Media. All rights reserved while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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fEATURED

CONSULTANT

HyPERLOOP

KEO’s Sultan: Why we’re

The world today looks to be on the verge of another revolution in transport and connectivity, with technologies such as the Hyperloop in advanced stages of trial.

The story “Hyperloop begins construction of passenger and freight test track” brought home the fact that the new age of connectivity is almost upon us. Even though the technology is still in its testing phase now, the day is not far when it will be ready to implement commercially.

Speedy development of this technology will enable a lot of countries around the world to skip an entire stage of development and catapult themselves into the modern transportation age – and the Gulf countries could be among them.

No real railway network exists in the region, despite years of planning, with only Saudi Arabia having rudimentary intercity passenger operations in place. If the GCC countries take the lead in implementing Hyperloop when it is ready, they will have at once solved a major connectivity problem by reducing travel time between cities in the region and lowering dependence on polluting fossil fuels by minimising the use of motor vehicles.

investing in talent and diversity

CONSTRUCTION

Caesars Palace hotel to open at Meraas’ Bluewaters Island

In Pictures: Inside the new Warner Bros. World Abu Dhabi CONSULTANT

Fast-tracking for Expo 2020 risks delays and higher costs

CONSTRUCTION

East Coast C&T wins contract to build Kalba Waterfront

CONSULTANT

Royal HaskoningDHV to conduct market study for Haramain High Speed Railway

6 May 2018

In Pictures: MAPEI’s $6.5 million expansion and new production line

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The Big Picture

Emaar, ARADA launch Aljada partnership agreement will see three new hotels launched within Sharjah mega project Building a robust hospitality infrastructure The deal between ARADA and Emaar will see the development of a strong hospitality infrastructure in the emirate of Sharjah, which will transform its economy.

ARADA has signed a management agreement with Emaar Hospitality Group to launch three new hotels in Sharjah. The Address, Vida and Rove hotels will all launch within Aljada, ARADA’s $6.5bn, 2,229,673sqm mixed-use mega project, and will add 150, 175 and 300 rooms respectively to Sharjah’s tourism sector.

The agreement was signed

by HE Sheikh Sultan bin Ahmed Al Qasimi, chairman of ARADA; HRH Prince Khaled bin Alwaleed bin Talal, vice chairman of ARADA; and Mohamed Alabbar, chairman of Emaar Properties.

Several other senior officials from both companies were also present.

“Our flagship development Aljada is a first-of-its-kind integrated lifestyle destination in Sharjah that will add tremendous value to the economy. Hospitality is one of the core aspects of the mega development. With the growth in tourist arrivals to Sharjah and the emirate’s status as a cultural hub, there is strong 8 May 2018

potential for building a robust hospitality infrastructure. Our agreement with Emaar will bring proven hospitality competencies to this spectacular development that will transform Sharjah’s economy,” said HE Sheikh Sultan bin Ahmed Al Qasimi.

According to a statement from ARADA, Emaar Hospitality Group will manage the Address Aljada Sharjah, with 150 rooms, and the Address Residences Aljada Sharjah.

The latter is said to offer a selection of 150 serviced residences and will be located in Aljada’s 1.9m sqft Central Hub, designed

by Zaha Hadid Architects.

The Vida Aljada Sharjah, with 175 hotel rooms, and Vida Residences Aljada Sharjah, with 120 residences, will be nearby.

The Aljada’s Business Park will host the 300-room Rove Aljada Sharjah. The serviced residences under Address and Vida will be offered for sale in Q4 of 2018.

“ARADA is redefining the residential and commercial

StatS: 3: number of hotels to be launched in Aljada mixed-use mega project 600: number of rooms to be added to Sharjah’s tourism sector $6.5bn: total value of Aljada mixed-use mega project 2,229,673sqm: total size of Aljada mixed-use mega project

landscape of Sharjah with Aljada, its ambitious master-planned destination that will catalyse all sectors of the economy. Through our partnership, we are bringing three distinctive hotel experiences that will meet the requirements of visitors and residents.

“This is a great example of the collaborations we foster to create iconic destinations of the future. Our three hotel brands – Address, Vida and Rove – have set high industry standards and will be a sterling addition to Aljada,” Mohamed Alabbar commented.

“Sharjah has unique touristic value that is defined by its cultural museums as well as natural attractions.

“With our three hotel brands marking their entry to Sharjah for the first time, we are not only expanding our footprint in the UAE but also contributing to strengthening the tourism sector of the emirate,” concluded Olivier Harnisch, CEO of Emaar Hospitality Group.

The Big Picture

MENA to invest $574bn in energy projects Investment nears $1 trillion as governments look to meet growing demand The MENA region is expected to commit an additional $574 billion worth of development over the next five years to critical energy projects, in addition to the $345 billion already committed to projects under execution.

This brings total committed and planned investment up to $919 billion, as the region’s governments look to meet growing demand and demographic and urban expansions, a report by Arab Petroleum Investments Corporation (APICORP) has found. Of the planned $574 billion in investment, the power sector accounts for the lion’s share at $187 billion, while the oil and gas

sectors represent $169 billion and $150 billion respectively.

The remaining investments will be in petrochemicals, the MENA Energy Investment Outlook report said.

“The GCC is driving investment in the region and will be well positioned on the back of increased prices, with Saudi Arabia and the UAE representing 38% of planned investments at $149 billion and $72 billion respectively between 2018 and 2022, as both countries look to boost their upstream oil & gas sectors,” it stated.

In other nations, planned investment between 2018 and 2022 is estimated to be $72

billion in Egypt, $59 billion in Kuwait, $58 billion in Algeria, $37 billion in Iraq, $9 billion in Oman and $5 billion in Bahrain, the report added. The planned projects for the remaining GCC countries are poised to reach $57 billion for the period.

Projects under study represent by far the largest portion of planned investment at $251 billion, while projects under contract bid amount to $92 billion, APRICORP’s research team said, with projects under design reaching $86 billion.

The team added that it expects the MENA region to continue investing heavily as major energy-exporting countries

expand the size of their energy sectors and strengthen their positions in global markets.

Committed investment in energy projects currently under execution is estimated at $345 billion for the five-year period.

The oil sector accounts for the largest share of investment at $131 billion, with the majority in upstream projects.

Total committed gas and power investment is $106 billion and $95 billion respectively, the report added, followed by chemicals at $14 billion. The GCC represents $171 billion in committed investment, approximately 50% of the MENA total, it said.

“The GCC is driving investment in the region and will be well positioned on the back of increased prices, with Saudi Arabia and the UAE representing 38% of planned investments at $149 billion and $72 billion respectively between 2018 and 2022” Growing demand Governments in the MENA region are looking to meet growing demand and demographic and urban expansions.

May 2018 9

The Big Picture

Work begins on $2.2bn Motor City project CSCEC begins excavation work on first phase of mixed-use development Union Properties says China State Construction Engineering Corporation (CSCEC) has begun excavation work on its newly launched Zawaya mixeduse development in Dubai’s Motor City. According to the real estate developer, Zawaya initiates the first phase of its new master plan for Motor City, currently estimated to have a completion cost of $2.2 billion.

Zawaya has a total floor area of nearly 37,000sqm and retail space of 5,000sqm and will comprise 400 residences including studios, deluxe studios and one- and two-bedroom apartments, the developer said in a statement.

Union Properties said that properties in Zawaya will be built around a main town square which will serve as the heart of the community, where residents will

be able to host pop-up markets, celebrate festive occasions and gather for recreational activities.

“Zawaya will also provide a modern lifestyle that improves the overall living standard of its residents and will add significant value to Motor City,” the developer’s statement added, pointing out that the project would be inspired by traditional communityfocused neighbourhoods.

“The project boasts a unique architectural design that meets the needs of modern life in all its aspects and aims to create a vibrant, integrated and sustainable community within the larger Motor City area.”

The development will also include retail and leisure facilities, a wide range of restaurants and cafés, open green spaces,

swimming pools, a fitness centre and squash and basketball courts.

“Union Properties is one of the first real estate developers to design and create integrated residential communities in Dubai like Motor City,” said Ahmed Yousef Khoury, group CEO of Union Properties. “We are proud to officially announce the launch of Zawaya that will redefine the concept of modern and integrated residential community with its iconic design.

“Residents will be able to enjoy a close-knit community experience, as we provide them with a suitable and harmonious space for communication and coexistence. We are looking forward to launching more residential, commercial, hotel and leisure projects within the new master plan for Motor City,” he said.

Zawaya to launch the first phase of the new master plan for Motor City Inspired by traditional community-focused neighbourhoods and designed as a modern, integrated, mixed-use project China State Construction Engineering Corporation (CSCEC) is leading the excavation work under a recently signed agreement for the new master plan for Motor City Zawaya is a 13,749sqm development with more than 400 residential units, providing residents with an urban lifestyle and the conveniences of shops, restaurants and cafés, sports and leisure

Heart of the community Zawaya will be built around a main town square which will serve as the heart of the community, where residents will be able to host pop-up markets, celebrate festive occasions and gather for recreational activities.

10 May 2018

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The Big Picture

1. $12.3bn Istanbul new aIrport to open october 29, contractor says Istanbul New Airport (INA), being built at a cost of $12.3bn on the outskirts of Istanbul, is on track to open on October 29 this year.

Construction work is said to be 80% complete and the airport recently achieved a milestone by demonstrating functioning lights on the first of its three runways.

The airport is being commissioned to handle 90m passengers per year and will feature three independent, parallel runways, taxiways, a terminal building, air traffic control tower, communication and weather systems.

Other utilities are also being built on-site.

Once completed, Istanbul New Airport is expected to become a new global passenger and cargo aviation hub, serving 100 airlines and reaching 350 destinations.

IGA is the engineering, procurement and construction contractor for the project and is also the new airport’s operator.

Yusuf Akçayoglu, CEO of IGA Airports Construction, said IGA was working day and night to deliver the project in its entirety in October, and that the project would “put Turkey’s stamp on the history of aviation”.

12 May 2018

$20.9bn UK could save $20.9bn a year by raising construction productivity, GenieBelt, a construction software provider, has claimed

2.tunIsIa to launch $1bn worth of InternatIonal tenders for solar and wInd projects The Tunisian government is set to launch an international tender for the construction of solar and wind renewable power plants worth $1.03 billion by the end of April 2018, the Prime Minister has said.

Youssef Chahed said the government plans to deploy 1GW of new renewable energy

capacity in the country. The first tenders for solar and wind, the publication of which has been set for April 27, will lead to the allocation of 300MW of solar in the states of Gafsa (100MW), Tataouine (100MW), Sidibuzid (50MW) and Tozeur (50MW).

There will also be 300MW of wind in the states of Nabeul (200MW) and Kabli (100MW).

Chahed added that these projects are expected to boost

private sector investments by close to $822 million. Another tender for an additional 200MW of large-scale renewable energy projects, for an estimated total investment of $205 million, is being planned for the Tataouine governorate, he said.

Furthermore, there are several 10MW solar projects to be set up in Sidi Bouzid, Kairouan, Kasserine and Tatouine, along with smaller 1MW solar parks.

2

The Big Picture

$340m China Road and Bridge Corporation has signed a $340m contract with Croatia’s Hrvatske Ceste to build the Peljesac Bridge

1

3

4

1,797

India’s Supreme Court has halted construction in 1,797 unauthorised colonies encroaching on public lands and roads in Delhi

3. engIe wIns 200Mw IndIa wInd project Multinational French firm Engie has announced that it has won a 200MW wind project in the state of Tamil Nadu, India. The onshore wind project is said to have a proposed tariff of $39/MWh through a 25-year power purchase agreement.

The project is part of a 2,000MW wind tender organised by the Solar Energy Corporation of India (SECI). The

200MW project win follows on from a 50MW wind project that Engie was awarded in Tamil Nadu last month.

“We are very proud of our numerous successes in India in wind, but also in solar PV, as for example the Mirzapur solar power plant we inaugurated a few weeks ago with French President Macron, Indian Prime Minister Modi and Engie CEO Isabelle Kocher. Engie is committed to

help the Indian government to reach its ambition to promote the development of renewable electricity and to increase the share of renewables in the energy mix.

All these projects are also a significant achievement of our commitment to build harmonious progress in the country and all over the world,” said Sébastien Arbola, CEO of Engie Middle East, South & Central Asia and Turkey.

4. saudI araMco and IndIan consortIuM to buIld $44bn refInery In ratnagIrI Saudi Aramco has signed an agreement with Ratnagiri Refinery and Petrochemicals (RRPCL), a consortium of Indian oil companies, to jointly develop and build a mega refinery and petrochemicals complex in the Indian city of Ratnagiri. Estimated to cost $44 billion, RRPCL will rank among the world’s largest refining and petrochemicals projects and will be designed to meet India’s fast-growing fuel and petrochemical demand.

The consortium includes the Indian Oil Corporation (IOCI), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL).

Furthermore, Saudi Aramco may also seek to include a strategic partner to co-invest in the mega refinery, a statement from the oil & gas giant said. The strategic partnership brings together the crude supply, resources, technologies, experience and expertise of these multiple oil companies, who have an established commercial presence around the world. A pre-feasibility study for the refinery has been completed, and the parties are now finalising the project’s overall configuration.

May 2018 13

Market Report

Abu DhAbi ResiDentiAl snApshot 2018

Core Savills report analyses market performance, drivers and deterrents for 2018

Residential supply Prominent completions over H2 2017 saw steady absorption including Al Hadeel at Al Bandar, Bloom Marina and Hidd Al Saadiyat. Key development launches such as Marina Rise Tower and Waters Edge have also witnessed traction in off-plan take-up, as they offer compact products at lower entry points along with lucrative payment plans.

Residential demand Most off-plan acquisitions are from investor buyers, who continue to be drawn to lower priced products due to the expected high level of yields and easier payment plans.

However, despite rental migration to these new areas,

14 May 2018

Abu Dhabi upcoming residential supply distribution: 2018-2020 Other 9% Al Maryah Island 3%

Al Reem Island 35%

Saadiyat Island 7%

Al Raha Beach 10%

Abu Dhabi Island 11% Yas Island 25%

overall tenant pool growth is expected to be much slower, resulting in yield contraction from the current high levels that many investors falsely expect

to continue post-handover.

Eventually, this decline in yields will reduce investor demand, in turn pulling sales prices further down over the mid-term.

Residential rents The overhang of downsizing activity across the private and public domain and the resulting contractions in housing allowances have led to further weakening of rents over the last few quarters. Villa districts continue to underperform due to a shift in occupier preferences led by contracting housing allowances, with average rental declines hovering over 17% while apartment communities display relative resilience at 7% drops.

Areas further away from the city centre, such as Al Reef Villas and apartments in Khalifa City A, have seen the largest declines as tenants prefer to relocate to Abu Dhabi main island to capitalise on falling rents and reduce the commute to the city.

Source: Core Savills Research

Yield contraction Despite rental migration to new areas, the overall tenant pool growth is expected to be much slower, resulting in yield contraction, the report said.

Market Report

Apartment sales H1 2017 vs H1 2018

H1 2017

Net rental absorption Over the last few quarters, rental stock has witnessed a relatively steady take-up, particularly in areas dominated by new stock such as Reem Island and a few projects on the Abu Dhabi mainland. This may give the market a perception of positive absorption figures, along with a rise in number of overall tenants in the city.

However, upon closer scrutiny, this is just a displacement of a portion of the total tenant pool from outer areas to central locations. Districts and developments which were previously inaccessible to tenants, either due to limited product offerings or because of higher entry points, are now becoming accessible to a wider occupier base, triggering this shift.

With the tenant pool almost the same (in some cases shrinking, such as in the high-income segment), landlords who did not react quickly enough to the changing market scenario are witnessing higher vacancy levels.

In other words, the higher takeup in new and centrally located stock is not largely due to new tenant demand but is the result of slower performing districts and uncompromising landlords.

H1 2018

1,600

Sales price in AED/sq.ft

1,400 1,200 1,000 800 600 400 200 Al Bandar

Al Muneera

We forecast new supply on Reem and Yas Island to add further downward pressure on rents within these districts, though Saadiyat Island is also expected to see a significant increase in residential supply.

Rental rates in the area are likely to be resilient due to its growing appeal as a lifestyle destination and a growing art and cultural hub.

Residential sales Sales prices also continued to weaken across most communities, down 8% on average across the city over the past 12 months. Most sales activity is concentrated in the off-plan segment, where attractive deals and newer products are to be found. Prices in areas such as Al Bandar, Al Zeina and Saadiyat appear to have improved slightly due to numerous handovers of quality off-plan projects such as Al Hadeel and Mamsha al Saadiyat. These handovers have achieved steady absorption levels, but older units continue to see sales prices soften.

The secondary sales market continues to be muted as potential buyers remain on the sidelines, waiting for the market to fall further. Existing owners who bought properties at the peak are becoming reluctant landlords looking to rent to an

Al Zeina

Al Reef Downtown

Marina Square

already limited tenant pool, rather than selling far below acquisition price. This gap in unrealised expectation versus market reality is causing the secondary sales market to see long transaction timelines and fewer concluded transactions.

Realisation rate analysis As the emirate has strongly depended on hydrocarbon revenues, the realisation rate of Abu Dhabi’s residential stock has historically had a strong correlation with crude oil prices. Rising oil prices in the 2010-2012 period translated to a steady realisation rate of nearly 45%, peaking at an optimistic 68% in 2013.

Similarly, realisation rates plummeted to as low as 21%

Saadiyat Beach Residences

Sun and Sky Towers

The Gate

between 2014 and 2016, mirroring the fall in oil prices, due to the cautious behaviour of developers. However, in 2017, as many developers could not hold their stock any longer due to cashflow strains, realisation rate surged to over 64%, despite oil prices only showing a marginal recovery.

In other words, the supply anomaly witnessed in 2017 was more a consequence of a bottleneck building up over the previous two years rather than a conscious attempt to add significant new stock to the contracting market. As the market slowly responds to stable oil prices, we expect realisation rates to stabilise at around 50% in the near term.

Villa sales H1 2017 vs H1 2018

H1 2017

H1 2018

2,000 1,800 1,600 Sales price in AED/sq.ft

0

1,400 1,200 1,000 800 600 400 200 0

Al Reef Villas

Al Raha Gardens

Ghadeer Villas

Golf Gardens

Hydra Village

Saadiyat Island

Saadiyat (sea view)

May 2018 15

Analysis

Hitting Bottom With a slowing rate of capital value decline across the UAE in Q1 2018, developers in Abu Dhabi sense a bottoming of the market and are pressing ahead with new schemes, say Faisal Durrani and Edward Carnegy of Cluttons With a slowing rate of capital value decline across the UAE in the first quarter of 2018, developers of high-end homes in Abu Dhabi appear to be sensing a bottoming of the market and are pressing ahead with new schemes, according to international real estate consultancy Cluttons.

“2018 looks set to be a better year for the UAE economy as a whole, with GDP expected to expand by 2.6% from a sevenyear-low growth rate of 1.7% last year. This is in turn expected to help support more stable rates of job creation and increased government spending as confidence levels improve,” says Faisal Durrani, head of Research at Cluttons.

“In fact, following the announcement by ADNOC at the end of last year to spend $109bn over the next five years to boost growth, we expect to see further infrastructure project announcements this year as the 16 May 2018

government moves to bolster economic growth.”

Residential Market

The Cluttons Abu Dhabi Property Market Outlook Report for Spring 2018 indicates that the very top of Abu Dhabi’s sales market has been relatively positive and is showing signs of stabilising. Seafacing villas on Saadiyat Island for instance, which remain the most expensive residential property type in the capital at AED 1,700 psf, have seen no price movement for two consecutive quarters.

“This trend is likely to help tempt buyers back into the market, especially as we feel the stability is likely to persist,” says Edward Carnegy, head of Cluttons Abu Dhabi.

“In fact, we have noted a marginal uptick in demand from Emirati buyers predominantly, looking for second homes or expanding their buy-tolet investment portfolios on

Saadiyat Island. Interestingly, of the 13 submarkets we monitor in Abu Dhabi, sea-view villas on Saadiyat Island have experienced the biggest price correction since 2015, with prices dropping by an average of 26.1%.”

Rents across Abu Dhabi’s residential investment areas decreased by 2.3% during Q1 2018,

following a 4.3% drop during the final quarter of 2017. The latest change leaves rents 11.5% lower than this time last year.

According to Cluttons, this reflects the lingering weakness in overall requirement levels.

Tenants are wary of the threat of job losses, the rising cost of living associated with the introduction

Change in residential values since Q1 2015 Source: Cluttons

Al Raha Beach

-16.9%

Al Reem Island

-20.5%

Analysis

of VAT, and a general upward creep in inflation which has left many household budgets under tremendous pressure.

“As a result, tenants are negotiating reductions at renewal, while landlords are increasingly receptive to meeting the expectations of tenants by agreeing to close deals below headline asking rates, and they are offering flexible rental payments in multiple cheques to attract tenants, as well as other incentives such as zero commission payable and rentfree,” adds Carnegy.

According to the report, Abu Dhabi’s residential market has the potential to start stabilising by the end of 2018, but until then further softening is expected to persist.

“The additional declines will be catalysed by rising levels of property handovers in locations such as Yas Island and Al Raha Beach by Aldar, which will curtail chances for a quicker recovery.

We expect a decline of a further 5-7% for both residential rents and values during 2018, largely as supply and demand will likely remain out of kilter for a while yet,” he adds.

“Positively, bulk corporate leases are back on the agenda for some firms as they move to secure

Saadiyat Island Apartments

-3.7%

“Tenants are negotiating reductions at renewal, while landlords are increasingly receptive to meeting the expectations of tenants by agreeing to close deals below headline asking rates, and they are offering flexible rental payments in multiple cheques to attract tenants, as well as other incentives”

Saadiyat Island Villas

-18%

better lease terms, or indeed better quality accommodation for staff, while also making a saving,” Durrani explains.

Office Market

Like the emirate’s residential market, the Cluttons report says the office market in the capital also still faces the pressures of firms that are downsizing or consolidating operations, a trend that began over two years ago.

While rents across the city’s prime office buildings held steady during Q1, deals continue to be concluded below headline asking rates in many cases. In secondary and tertiary buildings, rates have dropped by as much as 30-50% over the same period.

“In some cases, rents in tertiary buildings have fallen to nearly the same level as prime warehouses. However, these substantial drops do not accurately reflect market conditions and are a result of landlords holding out on rent reductions for extended periods of time, before being forced to make drastic adjustments due to increased vacancy as they chase the market down,” Carnegy said.

“We are aware of a number of instances where landlords are now also willing to cover

Al Reef Downtown

-12.1%

Al Raha Gardens

-5.6%

agency fees. This is a seismic change in behaviour, as up to 60% or 70% of landlords are now willing to do this, compared to almost none a few years ago. In addition to this, many are also willing to offer increased parking provisions, increased rent-free periods, shorter leases with increased flexibility.”

Overall, the Cluttons report highlights slightly more encouraging medium-term prospects, with rising publicsector spending expected to boost GDP growth, which in turn should aid in the return of more robust levels of occupier requirements.

“However, this is unlikely to materialise for at least another 9-12 months. Until the market approaches that point, we expect further office rent drops of 5-10% on average across the board, which we expect to continue underpinning the rising relocation activity we are seeing after a couple of very quiet years.

In parallel, occupiers from the banking and public sectors are testing the waters, attempting to capitalise on the softer rents – a clear indication that some are sensing the bottom of the current property cycle,” concludes Durrani.

Al Ghadeer Villas

-18.2% May 2018 17

In Profile

“Our philOsOphy is tO think Outside the bOx – we always believe that we can Outwit the cOmpetitiOn and that we can be smarter than anybOdy else Out there. that is because we believe in innOvating Our prOcesses and hOw we dO things”

Shiraz Hasan, CEO of Tech Group, sits down exclusively with Big Project ME to outline how he intends to turn the Ajman-based construction conglomerate into a force to be reckoned with in the UAE construction landscape

18 May 2018

In Profile

May 2018 19

In Profile

g

iven its proximity to the likes of Sharjah and Dubai, the Emirate of Ajman has often been regarded as the small fish in a large pond, developing projects that support local economic and population growth, but rarely making an impact beyond its borders. However, in recent years that perception has been changing, with the emirate launching several major tourism and infrastructure projects that aim to attract strong tourist numbers and investment.

According to a report released

by Cavendish Maxwell earlier this year, Ajman has seen large-scale retail developments catering to the catchment population, as well as visitors from neighbouring emirates, being built across the city. Furthermore, last year the government of Ajman said it would be allocating 34% of its $321 million budget to supporting economic and infrastructure development, translating the Ajman Vision 2021 and the emirate’s future plans.

As a result of the infrastructure impetus from the government and increased activity from private sector real estate companies, Ajman could be seeing an improvement in its investor profile over the coming years, the report predicts.

This assertion is supported

by Shiraz Hasan, CEO of Tech Group, an Ajman-based construction group that operates across various core disciplines in the construction industry. With operations that range from general contracting 20 May 2018

exceptional performance Shiraz Hasan says that Tech Group has seen growth of 20-25% over the last four years.

through to ready-mix concrete, electro-mechanical works, steel fabrication, aluminium and glass, interior and joinery works, concrete works and even a division that deals with petroleum products, Hasan says the group’s performance has been “exceptional” in recent times – a reflection of the potential of Ajman.

“It’s hard to pinpoint exactly, but at a group level – at a macro level – we have performed exceptionally well. We have grown between 20% and 25% year-over-year for the last four years. I think between 2016 and 2017, we’ve easily added another $27-32m in additional revenue to our group.

“The market has been challenging, but our philosophy is to think outside the box – we always believe that we can outwit the competition and that we can be smarter than anybody else out there. That is because we believe in innovating

“At every level [we look for innovation and efficiencies].

We keep reevaluating and re-engineering the processes, the structures, the teams, and we constantly try to go as lean as we can when it comes to a project”

our processes and how we do things. We keep challenging ourselves and finding new ways and efficiencies – that helps us to compete in a bad market as well,” Hasan asserts during an exclusive interview with Big Project ME at his offices overlooking Ajman Corniche.

Established in 2003, Tech Group has become a powerhouse of construction in the emirate, as evidenced by the number of projects and sites bearing the logos and signage of the group’s various divisions.

Since its launch, the company has been heavily involved in Ajman-focused projects but has also developed a regional presence, with operations in Saudi Arabia, Iraq and Sudan.

However, like many other businesses in the region, the group’s operations were hit by the financial crisis, and business went through a slump.

It was in the wake of these challenges that Shiraz Hasan was brought on board to help steady the ship and turn things around, as he explains.

“Primarily, I’m a finance and mergers and acquisition person.

I spent most of my adult life in the US, where I got my university education and went on to get public accounting certifications.

I started with Ernst & Young initially, then I moved on to work with PwC on the mergers and acquisition side, but I do have some experience in the oil & gas industry in the US [as well].

“When I moved out here in 2010, I started working with the government of Ajman and tried to help them restructure a government-owned group of companies, primarily in waste management and in road contracting. There were six or seven different businesses [within that group]. I spent around three years turning around that entity,

In Profile

and then this opportunity came about. It was in early 2013 when I started with Tech Group and took on the challenge.”

Making the shift to a construction business, having come from such a different background, required him to make a significant adjustment, and circumstances at the time meant he had to make some hard decisions.

“It seemed very challenging initially, because I personally had no experience. I’m not from an engineering background and I didn’t understand construction [at the time], although I had been associated with road contracting previously, which has the same methodology, at a macro level.

But given it wasn’t just one business – we had a group of businesses – and a lot of our entities were not performing

TECH GrOUP: Tech Construction Tech Engineering Tech Foundations Tech AluGlass Tech Remix Tech Blocks Tech Wood Tech Steel Tech Petroleum

well post the recession, it meant that a lot of work had to be done to turn the entities around and restructure them, set the teams up from scratch and come up with a comprehensive strategy to figure things out, and make a solid decision about moving forward.”

One of the first things he did is make the call to roll back Tech Group’s operations outside the UAE. This meant spinning off the Saudi Arabian ready-mix business and rolling back from Sudan and Iraq, where the group had a piling and construction business, so that his team could focus on the local market and make a strong impression there.

Another important lesson learnt during that time was to focus on improving efficiencies and cutting down on costs.

“At every level [we look for innovation and efficiencies].

We keep re-evaluating and reengineering the processes, the structures, the teams, and we constantly try to go as lean as we can when it comes to a project, because the lesser the overheads, the more competitive you are in the market,” Hasan explains.

“When it comes to the manufacturing and contracting units – like our wood joinery unit, the aluminium and glass units and the steel fabrication units – we keep an eye out for any new technologies or automations that would help us cut down costs and increase production. Cutting manpower costs is one thing, but at the same time, if there is a technology that helps you produce double your current amount in a day and uses similar technology, then that’s the kind of stuff that we’ll always keep an eye out for.”

improving efficiencies Part of Hasan’s remit as CEO has been to improve efficiencies across the various divisions of the company, through investment in technologies and systems.

May 2018 21

In Profile

keeping the competitive edge Having invested more than $100m into the business, in its factories and operations, including buying new and modern machinery and equipment, Hasan says that Tech Group is well placed to beat out the competition.

As a result, over the last three or four years the company has invested more than $100 million into the business, in its factories and operations, including buying new and modern machinery and equipment, as it looks to keep its edge in an increasingly competitive market.

“Our biggest focus has been construction, which incorporates all our business units except for petroleum. Steel has been a major focus – we’ve put a lot of effort into upgrading our plants and equipment, we’ve bought new automated CNC machines and fabrication equipment, new cranes and all. We now have a pretty modernised steel fabrication and cutting factory.

“We have also gone out and sought a dealership with Emirates Steel, which will boost the variety we can offer to our customers. We have been dealing with Turkish Steel and with some local steel mills as well, but this deal with Emirates Steel really put us out there, in terms of giving options to customers about whatever steel they want to choose,” he elaborates.

Furthermore, Hasan reveals that he wants Tech Group to diversify its offering even further, explaining that despite construction being the main 22 May 2018

focus, he encourages the team to look beyond it as well for new business opportunities.

“We’re looking at eco-related projects, like waste-to-energy, waste-to-RDF, desalination, wastewater treatment and a whole host of other opportunities. We’re even looking into solar. We’ve not necessarily started everything yet, but there’s a lot of groundwork that has happened and we feel

very confident that we’re going to have a solid impression in the environmental business market.

“Without going into too many details, we have a partnership with an international company, a 50/50 partnership, and one of the areas we’re exploring with them is desalination. For our first project, we’ve already secured a location to set up the plant, and right now we’re going

steely focus Tech Group has formed a partnership with Emirates Steel, which will allow it to boost the variety it can offer its customers.

through the environmental and feasibility studies. It’s soon to become a reality.”

Returning to the present, Hasan says the group plans to step up its recruitment plans as it looks to build upon the good performance of the various divisions in recent years.

While this can be viewed as a somewhat surprising stance, given the challenges the UAE construction industry is facing, he’s confident this is the best time to make such a bold move.

“Surprisingly, in a market where you’ve seen so many layoffs and bad news in the recruitment market, we have – just over the last year – hired more than 120 professional staff, and we’re constantly recruiting. I think right now in the market we’re one of the biggest recruiters.

“We’re expecting to see major progress in the waste-to-RDF facility and the desalination plant. The water treatment facility is already ongoing, and

In Profile

expanding core competencies Hasan is keen for Tech Group to expand its core competencies beyond Ajman, and is targeting the Dubai construction market as a major focus for the group.

“Surprisingly, in a market where you’ve seen so many layoffs and bad news in the recruitment market, we have – just over the last year – hired more than 120 professional staff, and we’re constantly recruiting.

I think right now in the market we’re one of the biggest recruiters” there are a couple of other major projects where we’re expecting to be partnering with a couple of other international companies.

So this is a major focus for the group right now, along with construction,” he asserts, adding that within construction, the group is approaching a turnover of $190.5 million, and that his target is to increase it to $272 million by the end of 2018 or early 2019.

In addition, Hasan reveals that with the group’s constructionfocused entities performing so strongly, he intends to take the natural next step and look at the real estate development sector. Given that the group has already formed a reputation as a one-stop shop for massive real estate projects – as evidenced

by the success of its work on the massive Sharjah Waterfront project – he sees no reason not to consider moving into the development of projects.

“We’re primarily a construction group and we’ve not really been in real estate development, but it is something that we think may gel well with our businesses. We’ve just started one major project, which is a 27-storey tower in a prime location in Ajman. That’s something of a trial run, you could say. We’ll see how well that project performs in terms of rate of returns and all. If it does well, then we’ll look at multiple different venues and markets in the UAE.” While these ambitious plans are very much in play,

Hasan adds that Tech Group is also focusing on expanding its core competencies beyond its current Ajman boundaries.

Dubai has become a major focus for the group, with its MEP division already securing some major projects in the neighbouring emirate.

“As we’re adding more capacity and as we’re growing, we’re hungry for more work.

Dubai is a major market for us.

Our MEP division has secured more than a couple of hundred million dirhams worth of work in Dubai, while Tech Construction is set to follow next. We’re trying to work out the licensing requirements and all to set up our base in Dubai. Our other entities have already been involved [in

projects in Dubai], and they’ll continue to stay involved and look for more market share,” he says, acknowledging that there will be challenges along the way.

“There are issues in the market.

We know that the liquidity situation is not very good and that a lot of contractors have had payment issues,” Hasan says.

“That’s something that we’re totally aware of, and when we’re going and bidding for new projects, we’re going to be very cautious and select them carefully – the developers and clients that we want to work with.

“The risks are there, but we have more of a conservative approach. We don’t like to overexpose ourselves, so I think we’ll come out fine,” he concludes.

May 2018 23

Site Visit

gateway to the marina

Following the handover of the first tower in Select Group’s Marina Gate project, Big Project ME catches up with the developer and ALEC, the project’s design and build contractor, to find out how work is progressing on the second tower, which is due to be completed in Q2 2019 26 May 2018

Site Visit

May 2018 27

Site Visit

t

hree years ago, Big Project ME visited the Marina Gate project as construction on the building core for the first tower had just begun.

Even at that early stage, the scale and size of the project was immediately apparent. Built at the entrance of the Dubai Marina, the three-tower residential project is situated at one of the last remaining waterfront plots in the marina and will form a crucial link for the entire neighbourhood once completed.

Fast-forwarding to the present day, developer Select Group has announced the handover of apartments at Marina Gate 1 following its completion.

With residents now moving into the tower, Big Project ME was invited to return and see how work is progressing on the remaining two sites.

“There are 64 floor levels, and the façade is on level 27 at the moment, while our internal work is up to level 38. We’re ahead of the façade, and that is the challenge at the moment, to close the envelope, especially with summer and Ramadan approaching very soon”

The construction of Marina Gate II is now the priority, Select Group says, with completion scheduled for Q2 2019. The third tower – Jumeirah Living Marina Gate – only began construction in Q1 2017, so is considerably further behind in progress, though still on track to finish in 2020, as planned.

“Tower II, the structure is complete to the roof,” says Johan Moolman, senior contract manager with ALEC and the man tasked with overseeing the project for the main contractor.

“There are 64 floor levels, and the façade is on level 27 at the moment, while our internal work is up to level 38. We’re ahead of the façade, and that is the challenge at the moment, to close the envelope, especially with summer and Ramadan approaching very soon. The podium and everything else is finished. We’re currently working on podium seven where we’ve got the swimming pools,” he adds, pointing out that the job is likely to be finished by the time this interview goes to print.

Closing the gap Johan Moolman says that work on Marina Gate II’s facade has reached level 27, while internal work is up to level 38.

MArinA GAtE StAkEhoLdErS: Client: Select Group Main contractor: ALEC MEP contractor: ALEMCO Fit-out contractor: ALEC Fit Out tEChniCAL dEtAiLS: total project value: $1.089bn total built-up area: 3,530,316sqm MG i: Building height: 207m total floors: 52 + roof total built-up area: 106,721sqm Apartments: 389 Villas: 10 retail units: 16 MG ii: Building height: 262m total floors: 65 + roof total built-up area: 126,543sqm Apartments: 509 Villas: 8 retail units: 15 JuMEriAh LiVinG MArinA GAtE: Building height: 224m total floors: 57 + roof total built-up area: 117,889sqm Apartments: 493 (including 104 serviced apartments) Villas: 15 retail units: 15

28 May 2018

Site Visit

managing the site With between 2,000 and 3,000 workers on the project, ALEC says it has implemented a stringent site management programme which controls the movement of the labour force and materials in and out of the site, with materials stored on the levels being worked on.

Ian Stapely, senior project manager at Select Group, adds that the tower features 519 residential units, as compared to Marina Gate I, which has 399 residential units spread over 51 floors. He says Jumeirah Living Marina Gate will include 104 serviced apartments, 389 branded residences and 15 villas.

A major feature for the project is the combined podium, which is spread over seven levels and will feature a retail colonnade, amenities like an infinity edge pool and gymnasium, and the grand duplex villas.

“A retail colonnade spread over approximately 13,935sqm will connect the entire

development. Located on the ground, mezzanine and first floor of the development, Retail and Marina Gate has direct access to the Marina Walk and provides a lively, active connection with the rest of the community, without compromising the privacy of the residents.

“Residents of Marina Gate and other neighbouring developments will have access to more than 50 retail units, including a polyclinic, supermarket, a variety of F&B outlets, salons and recreational facilities. King’s College Hospital London – Medical Centre, Bin Sina Pharmacy, the Coffee Club, Ted Morgan and the Nail Spa are some of the brands

that are set to start operations at Marina Gate 1 shortly.

“Once complete, the residents of Marina Gate I and II will be able to enjoy the amenities in both towers with a landscaped interconnected courtyard featuring infinity pools, stateof-the-art gymnasiums with an outdoor gym, children’s pool and play areas, squash and paddle tennis courts and a multi-purpose court, in addition to other facilities. These will be located on podium level seven of both developments.”

Moolman points out that the podium is integrated between the three towers, which allows for the smooth flow of residential traffic

to all the various amenities in the development. He adds that there are villas on all three towers, and the rest of the space is used by carparks, while the basement houses the crucial equipment and infrastructure for the buildings, such as the plant rooms.

When it comes to the retailers on the podium, he explains that ALEC’s role as main contractor only extends to the shell and core of the project, with fit-out and interiors for the retail segment left up to the individual tenants.

“Our scope of work is shell and core. We hand over to the client and they coordinate with the anchor tenants. However, there’s always a requirement from

“We needed to make sure that the material we needed on time was delivered on time. What we’ve done to streamline that is to take material from the trucks and move it to where it belongs – we take it up to the floors required and we have dedicated areas where we can place the materials down, which makes it easier for the workforce” May 2018 29

Site Visit

“We carry HSE very close to our hearts. What we do is make sure that everyone that comes to the site gets safety inducted. We have daily toolbox talks, where we discuss the area that the guys will be working on and the activity they will be executing, and the risks thereof” an anchor tenant back to us, in terms of services and relocating stuff, so we will work together with them to make sure that they open all these retail units.

“For the rest, it’s been a pretty straightforward project, in terms of being a tower. Most of the floors are typical, so it’s a repetition of works and that helps a lot. The challenge that we actually had was around concluding the design, in terms of wind tunnel testing, the reports and so on. But for the rest, it was pretty straightforward – it was about finalising the design and getting the approvals signed

off by the Civil Defence,” he says, explaining that these centred around the façade system in use on the towers.

“When the new circular came about the façade systems being fireproof, the challenge for us was not to get it approved, but to get it through the line with Civil Defence. We had to convince them that the system we’re using is compliant. They obviously had criteria of requirement, which we fulfilled and therefore got approval for all three towers.”

Stapely adds that because the Dubai Marina community is developed around a large water

body, there was always a risk of water infiltration during the excavation and construction of the underground/basement levels. As such, the project team needed to seek approvals to ensure that their plan to mitigate the risk of water infiltration was approved.

“In order to avoid going too deep underground, special permissions were obtained to increase the height of the podium levels and move the parking floors above ground,” he says, in reference to Marina Gate I. “In addition, due to new authority regulations

introduced halfway through construction, the concrete core of the development had to be modified to accommodate the fireman’s lift requirements.

“Other challenges included building a site with limited access, as the road leading to the plot was not yet constructed.

Restrictions were also in place for construction during the night to ensure that there was no noise disturbance for the neighbouring buildings.”

This challenge has continued into the construction of Marina Gate II and Jumeirah Living Marina Gate, Moolman says,

working with restrictions Among the challenges faced by the project team were the stringent noise restrictions in place for night-time construction work.

30 May 2018

Designed from the inside out Every apartment in the tower has been designed to maximise indoor space, with high ceilings and right angles providing a perfect balance, Stapely says.

Site Visit

iAn StAPELy on dESiGninG MArinA GAtE i Marina Gate I has been conceptualised with great attention to detail. In keeping with the needs of the residents, the building integrates all its functions into a sequence of inviting spaces, which permit a proper progression from public to private areas, from active to quiet uses, and from utilitarian functions to presentation areas.

ForM FoLLowS FunCtion The Residences at Marina Gate are designed from the inside out, with every apartment planned to maximise indoor space with high ceilings and right angles, perfectly balancing the striking, modern vertical lines with inspired interior decoration. uniQuE dESiGn The villas are a perfect representation of how space usage has been maximised. All villas in the development are uniquely designed, with architectural lighting features that help support the luxurious design without obstructing the view. Equipped with private lifts, residents of the villas

have direct access to the Marina Walk and dedicated car parking bays on the same levels as the villas.

BuiLdinG FACAdE The striking all-glass façade of the development features strategically placed mesh fins with illumination. The façade design was inspired by the need to maximise the stunning waterfront and cityscape views for residents.

CoMMon ArEAS Luxuriously appointed lift lobbies and spacious corridors are finished in premium marble finishes. The luxurious amenities in the development are fitted with grade A appliances and fivestar standard furnishings. intErior dESiGn Huge floor-to-ceiling, threepanel glass windows with pressure locking sliding glass door and glass balustrades on the balconies maximise views and provide abundant natural light. A guide rail seamlessly extends the living room onto the full glass balcony.

All residences are equipped with built-in wardrobes in real wood walnut finish veneer with full-height inset mirrors and soft close

drawers. Integral lighting features in the hanging rails, concealed drawer runners and built in shoeracks are a standard feature in the development.

Spacious kitchens feature gas alarm with manual emergency gas cut-off, extra deep stainless-steel sinks, built-in fridge and freezer, gas hobs and ovens, recessed lighting, freestanding and concealed washing machines, adjustable spotlights and intelligent storage solutions.

Cabinets and drawers are soft close. The aluminium perforated ceiling access for the AC unit offers easier access than traditional single panel access points, as well as being cleaner and more aesthetically appealing.

Bathrooms are divided into dry and wet areas with fullheight tiles in glass cubicles, rain showers and linear drains. All bathrooms feature hardwearing Silestone counter tops, built-in storage and backlit mirrors. Podiumlevel villas feature bi-folding doors and full-glass windows overlooking spacious terraces ideal for waterfront entertainment. Curtain boxes have been added in all rooms for convenient curtain installation.

explaining that ALEC has had to devise a clever system to allow them to bring in materials on time while also keeping on-site disruptions minimal.

“The key for us on-site is to ensure that all of our supply chain buys into on-time delivery.

Generally, what happens with jobs is that they flood the site with material and they store it somewhere. Unfortunately, we don’t have that capacity or area to store. Everyone was made very aware of this and was told to follow the plan and make sure that the materials are delivered on time.

“We’ve got a lot of challenges around us – buildings, the tram, road closures and so on. We needed to make sure that the material we needed on time was delivered on time. What we’ve done to streamline that is to take material from the trucks and move it to where it belongs – we take it up to the floors required and we have dedicated areas where we can place the materials down, which makes it easier for the workforce to take it from there.”

Stapely adds that extensive planning was done to ensure that neighbouring residents weren’t disturbed. Special permissions were obtained to ensure that heavy deliveries were made at night, while extra personnel were also appointed to administer traffic during busy hours, so as to avoid congestion.

“As residents have moved into Marina Gate I, all efforts are being made to ensure that roads leading to the basement parking remain clear of heavy traffic and machinery during the day.

“The podium level which will house shared amenities for both Marina Gate I and II has been cordoned off with semipermanent partitions to create a division between the finished and under-construction phases May 2018 31

Site Visit

Flexible processes As a design and build contract, ALEC says it had more flexibility on the project, allowing it to manage the entire construction process in a more efficient manner.

“From a design point of view, being a design and build contract, we’ve got a bit of flexibility in terms of managing the process.

It’s a lot more efficient – any changes that come out, we sit down with the client and they assist us in getting through the line. We’ve established a great team with them” 32 May 2018

of the development. With strict access control systems in place, only residents and authorised personnel now have access to the development,” Stapely asserts, highlighting the measures taken to ensure new residents are not left too disturbed.

Furthermore, with the project’s concrete plants nearby in Jebel Ali, Moolman says ALEC has worked out approvals with Dubai Municipality to

working around the clock The site is currently operating on a two-shift, 24hour construction cycle, Moolman says.

carry out the concrete works at night. In addition, conscious that noise is likely to be a major issue, he stresses that the project team has been quite involved in communicating with neighbouring residents to ensure clarity and understanding between all parties.

“You’ll always get the odd resident who’ll complain, but the Dubai Municipality is quite strict with their regulations,

and we try to stay within those parameters. It’s 55 decibels in the evening, and during the day it’s obviously higher because of the surrounding noise. Dealing with residents has been challenging, but most of them have been quite understanding. We do look to meet with them and discuss what has to happen to make the project successful, and Dubai Municipality is quite involved.”

Site Visit

With the site operating on a 24-hour construction schedule, with two shifts for the 2-3,000 workers on-site, this flexibility and support from the clients and authorities has been crucial in ALEC – working as a design and build contractor for this project – being able to meet deadlines and handover projects on time, he asserts.

“From a design point of view, being a design and build contract, we’ve got a bit of flexibility in terms of managing the process.

It’s a lot more efficient – any changes that come out, we sit down with the client and they assist us in getting through the line. Select has been quite helpful and we’ve established a great team with them.”

In addition to being the design and build contractor, ALEC also has two of its subsidiaries involved on the project – ALEMCO and ALEC Fit-out and Interiors, who handle the MEP work and interior finishes respectively. Having an in-house team involved not

“It’s been a pretty straightforward project, in terms of being a tower. Most of the floors are typical, so it’s a repetition of works and that helps a lot”

only makes project milestones easier to achieve, as they all have the same agenda, but also ensures better collaboration and coordination, Moolman says.

To ensure transparency and clarity, the team has been using BIM on the project right from the outset. This has made for a remarkably clear and collaborative construction process, as it ensures transparency, he asserts.

“On Jumeirah Living Marina Gate, the consultants have worked hand-in-hand with us in terms of developing the design. On Marina Gate I and II, we got the design from the previous consultant and we enhanced that a little bit. But everybody has access to the BIM model – we set up workshops on a daily basis until we had the BIM model fleshed out and everything worked in terms of coordination and requirements.

“Of course, you do pick up issues as you go along, but it’s something you can fix quite quickly. We can identify things

very early and we could catch them as we went up the tower.”

Health and safety was another major concern for the team, given the number of workers operating on-site, and Moolman asserts that ALEC operates a zero-tolerance policy for any violations.

“We carry HSE very close to our hearts. What we do is make sure that everyone that comes to the site gets safety inducted. We have daily toolbox talks, where we discuss the area that the guys will be working on for that particular day and the activity they will be executing, and the risks thereof.

Everybody is aware of what the requirements are on a daily basis, and it’s in our interests that everybody comes to the site safely and also leaves safely.

“There have been a few incidents, but they’ve been minor. We’ve not had any fatalities or anything major.

We’re quite strict and make sure that everybody follows the rules,” he concludes.

access to all amenities Residents at Marina Gate I and II will have shared access to all the amenities in the buildings, including swimming pools, gyms and sporting facilities, through an interconnected courtyard.

May 2018 33

Smart Airports

Dimitris Kitsios

Paul Davies

Smarter airportS: myth or reality?

Dimitris Kitsios and Paul Davies of Parsons outline how airports can improve performance and efficiencies by adopting smart technologies What defines a smarter airport? Its people? Its processes? Its technology?

In fact, it’s all of the above. The key to a smarter airport is to have a holistic and cohesive strategy that covers all facets of the business, from procurement to maintenance to IT. In today’s demanding travel environment, airports are constantly seeking ways to be more efficient. However, this is a challenge, with a plethora of different stakeholder groups and key operational processes that have changed only minimally but have grown more complicated. Attaining efficiency demands collaboration between 34 May 2018

systems and data sharing.

At the heart of any modern airport is the AODB, or airport operational database – the key word being data. If the business has a strategy underpinned by the integration of systems and data, efficiency will be realised. Data is truly the lifeblood of any business, and airports are no exception.

Why shouldn’t the flight schedule drive the lighting systems and public-facing screens? The schedule contains the latest information regarding passenger and aircraft movement and is best placed to manage the energy consumption required across gates and lounges to meet the most up-to-date operational

early involvement The early involvement of stakeholders in the design of an airport asset, particularly airport operations, is becoming imperative in conforming to the new digital reality.

plan. Any airport that wants to be considered smart must first articulate and understand its workflows and processes, then look for a technological solution that captures and enables them.

Airports face ever-increasing challenges, such as meeting accelerating capacity demands; escalating passenger demands balanced against the need for more security; rising costs; and rigid, inflexible information infrastructures. The need to do things differently – or smarter – is now an imperative. And being shrewd with business data and the integration of systems is critical to making the smarter airport a reality.

Airports of the future will be required to focus on a fast, seamless passenger experience.

The industry has already made near-seamless and stress-free security screening available.

Common-use self-service for passengers and luggage, Trusted Traveller programmes, advanced CT imaging at checkpoints, smart-security initiatives and biometric trails for immigration, and passenger self-boarding are all available today.

When people fly, they want to walk into an airport, drop off a bag, walk through a screening area largely unimpeded and walk out to the aircraft, ideally after eating a fresh sandwich and buying small

Smart Airports

“The unprecedented capacity of systems today to analyse data in real time makes the digital transformation of airport operations not only technically feasible, but also financially viable”

gifts for the family. In the near future, with a fully integrated operational strategy and solution in place, this scenario will exist.

The digital transformation of airports must extend to all key aspects of operations, from air-traffic management to facilities management and runway technologies. The unprecedented capacity of systems today to analyse data in real time makes the digital transformation of airport operations not only technically feasible but also financially viable.

The requirement to be smart, however, must also stem from the way in which airports are designed and constructed.

Though technology has evolved

considerably in recent times, airport designs, and therefore construction projects, are often still based on traditional needs and assumptions. Instead of establishing the intelligent ethos from the beginning, often it is an aspiration that designers try to retrofit based on a client’s needs after construction has begun, which is difficult and may cause delays and cost escalation.

The early involvement of stakeholders, particularly airport operations, in the design of an airport asset is becoming imperative in conforming to the new digital reality.

Construction can no longer afford to overlook IT and security.

So, what needs to be achieved to deliver a smarter airport?

Smarter airports must abide by certain key principles: • They must enable growth and rapid change through an intelligent and interconnected platform, ensuring flexibility and scalability.

• They must promote a collaborative environment, disseminating information in real time to all stakeholders, which will ensure a single source of truth.

• They must focus on the overall passenger experience, ensuring a predictable, repeatable and seamless end-to-end journey.

• They must encompass

intelligent asset management and automation in the use of buildings and operational facilities.

• They must be environmentally friendly with smart energy management solutions.

• They must support and deliver new revenue-generating opportunities by leveraging their data and infrastructure.

As airports continue to evolve and become true mini-cities and multimodal hubs, the integration of systems, data and stakeholder needs will have to become standard practice, from design to operation, to optimise operational needs while achieving the goal of becoming a smarter airport.

May 2018 35

Event Review

OUT ON THE GREEN

Recapping the 2018 edition of the Big Project ME Golf Day – Contractors Cup, with the industry’s finest golfers coming together for a day of friendly competition

Playing for change This year’s edition of the Big Project Golf Days saw the venue and dates change, so as to incorporate the Contractors vs Consultants Golf Day in December 2018.

The new year brought a fresh venue to both editions of the 2018 Big Project ME Golf Day. This year, the Contractors Cup (March 26) and the Consultants Cup (March 28) were held at the spectacular Address Montgomerie Golf Cub, which proved a beautiful and engaging battleground for the best the construction industry had to offer. With the annual contests being held earlier in the year than usual, all the players enjoyed a beautiful March day out on the greens.

This year’s Contractors Cup welcomed over 70 players from the region’s top firms, all of whom thoroughly enjoyed their day out at the new venue. Beyond the change of date and venue, the number of events in the event roster also grew. This year, on December 11, CPI Trade Media will host its inaugural Contractors 36 May 2017

Vs Consultants Golf Day, which will pit the winners of both events against each other. It promises to be a fantastic conclusion to the year’s event season.

“Following the tremendous success of our golf days in 2017, we decided to freshen things up with a different venue and an all-new event. As the Consultants and Contractors Cup events were both over-subscribed and extremely well received, we’re confident that our inaugural Contractors vs Consultants Cup in December will be a resounding success,” said Raz Islam, publishing director at CPI Trade.

“I’d like to offer special thanks to our sponsors and partners for all their support, and I look forward to welcoming the winning players back to the greens for a competitive and exciting battle in December.”

The 2018 Contractors Cup was sponsored by Isuzu, LACASA, CCS, Electric Mirror, Truelux Group, Stretch Ceilings, RMD Kwikform, STO, METSEC and Hill International.

On the greens of the Address Montgomerie, several winners were recorded after play. In first place was the team of Laurent Farge, Paul Yates, Shabir Yakub and Mark Gardener; in second place were Akeel Perera, Gavin Dawbney, Paul Barnard and Jake Cone; while the team of Keith Elliot, Richard Dixon, Christopher Watson and Craig Gibbon finished in third place.

The team that placed first walked away with the 2018 Big Project ME Contractors Cup Trophy, a complimentary game of golf at the Montgomerie Golf Club and a Callaway shoe bag. Players in the first runner-

up team walked away with a weekend stay for two at the Sandy Beach Hotel and Resort, while the second runner-up team’s players scored a three-month unlimited CRYO membership and a brunch voucher for two at Al Maeda Restaurant in the DoubleTree Hilton JBR. In addition, Tony Stroud won the CCS lucky draw competition, while Brendan Carbery and Nigel Cann won the Stretch Ceilings ‘Hit the Bullseye’ competition. Keith Elliot won the Electric Mirror ‘Closest to the Pin’ competition, while the Electric Mirror ‘Straightest Drive Competition’ was won by Brendan Khan.

Craig Laidlaw bagged the METSEC ‘Nearest to the Pin’ prize, while Neil Hill walked away victorious in the ‘Longest Drive’ competition.

Event Review

May 2017 37

Event Review

WinnErs: 1sT PlACE: Player 1: Laurent Farge Player 2: Paul Yates Player 3: Shabir Yakub Player 4: Mark Gardner 56.4 nett 2nD PlACE: Player 1: Akeel Perera Player 2: Gavin Dawbney Player 3: Paul Barnard Player 4: Jake Cone 58.4 nett 3rD PlACE: Player 1: Keith Elliot Player 2: Richard Dixon Player 3: Christopher Watson Player 4: Craig Gibbon 59 nett

Thanks to all our sponsors

Building with conscience.

G r o u p 38 May 2017

Show Review

THE BiG 5 HEavy dEBUTs

Inaugural edition of show sees more than 6,000 visitors and 300 exhibitors in its launch edition last month, The Big 5 Heavy welcomed over 6,000 visitors to the Dubai World Trade Centre. When asked, 90% of visitors said they would return next year.

The event brought together 300+ exhibitors across 7,000 sqm of specialised exhibition space and is now the largest event dedicated to heavy machinery in the Middle East.

“When combined, deals that were made at The Big 5 Heavy between leading manufacturers like Total Foundation Solutions, Deewan and Putzmeister came in at a total of $2.5 million,” commented event director for The Big 5 Heavy, Richard Pavitt.

“The event this year was

Crowd pleaser The three days of the show were busy with customers and potential buyers from across the GCC and MENA region, exhibitors said.

a visually stunning crowd pleaser. And as for the deals, well, they support a growing infrastructure industry in the Middle Eastern region,” he said.

Andrea Bristot, Middle East Area sales manager for leading Spanish tower crane manufacturer Linden Comansa, agreed: “During the three days of the show, we

were very busy with customers and potential buyers not only from the Emirates but also from Egypt, Oman, Saudi Arabia and Kuwait, which shows that the entire region is under an evident recovery. Another good indicator is that the world’s main tower crane manufacturers were at The Big 5 Heavy show.”

The exhibition showcased heavy equipment from a range of industries, with products from sectors including concrete, mining and construction.

In addition, there were also over 40 free learning opportunities for visitors.

Speaker Omar Essam Barakat, Dubai Novus chairperson for the Chartered Institute of Building, concluded: “Events like this should be mandatory for professionals to come and see, and companies should be encouraging their employees to come and visit – it’s a must.”

The Big 5 Heavy is organised by dmg events and will return to the Dubai World Trade Centre 14-16 January, 2019.

CiTysCaPE aBU dHaBi

More than $4 billion worth of new projects showcased for the first time reaffirming its position as the leading real estate and investment event for the capital, the UAE’s top developers chose the 12th edition of Cityscape Abu Dhabi as an opportunity to showcase their new flagship projects for the first time.

Bringing together more than 100 local and international exhibitors, it provided the platform for the launch of numerous flagship real estate projects with an estimated worth of over $4bn, including the following: Alghadeer by Aldar Properties – $2.72bn The first affordable new mixeduse project of Abu Dhabi’s leading property developers is located close to the Kizad Free Zone,

showcasing flagship projects More than 100 local and international developers exhibited their projects at Cityscape Abu Dhabi.

Dubai’s Al Maktoum International Airport and the Expo 2020 site.

The project consists of 14,408 units, including villas, townhouses and maisonettes, which will be delivered over a period of 15 years.

MAG EYE by Mag lifestyle Development – $1.27bn MAG EYE is a master planned

townhouse and villa community in Meydan District Seven in Mohammed Bin Rashid City.

Built in close proximity to Meydan Racecourse, with easy access to Al Khail and Sheikh Mohammad Bin Zayed Roads, MAG EYE is centrally located within a few minutes’ drive of major destinations.

Running in parallel to the exhibition, the Cityscape Abu Dhabi Conference took place during the first day of the show, under the theme: ‘Rewriting the Rule Book – Generating Growth in Abu Dhabi Real Estate’.

The four main sessions at the conference were: Real Estate Industry Trends in 2018, The 4th Industrial Revolution, Investment in Abu Dhabi, and Affordable Housing.

Muhammed Binghatti, CEO and head of Architecture at Binghatti Developers, said that he believes that continued investment in real estate is playing a key role in sustaining the emirate as the government expands its efforts to diversify revenue streams.

May 2017 39

Tenders

Top tenders Yanbu Grain SiloS Complex projeCt budget $95,000,000 project number WPR3178-SA territory Saudi Arabia Client Grain Silos & Flour Mills Organisation (Saudi Arabia) address Grain Silos & Flour Mills Organisation Bldg, King Fahed Road, Al Olaya Area City Riyadh 11471 postal/Zip Code 3402 Country Saudi Arabia phone (+966-11) 210 3333 / 210 2705 / 8002472220 Fax (+966-11) 210 4444 email gsfmo@gsfmo.gov.sa Website www.gsfmo.gov.sa Description Construction of 2 grain silos

period 2020 Status Current Project main Contractor Haif Bin Mohammed Bin Abboud Al Qahtani & Partners for Trading & Contracting (Saudi Arabia) mep Contractor Haif Bin Mohammed Bin Abboud Al Qahtani & Partners for Trading & Contracting (Saudi Arabia) tender Categories Industrial & Special Projects tender products Factories, Storage

SauDi German hoSpital projeCt – riYaDh budget $52,000,000 project number WPR3027-SA territory Saudi Arabia Client Middle East Healthcare

Company (Saudi Arabia) address 4 Batterjee Road, Al-Zahra District City Jeddah 21461 Country Saudi Arabia phone (+966-12) 260 6000 email info@meahco.sa Website www.meahco.sa Description Construction of a new hospital comprising 76 clinics and the addition of 147 beds period 2021 Status Current Project main Contractor International Hospitals Construction Company – IHCC (Saudi Arabia) tender Categories Construction & Contracting, Medical & Healthcare tender products Hospital Construction

avenueS mall expanSion projeCt – phaSe 3 budget $10,000,000

project number WPR3240-O territory Oman Client Oman Avenues Mall (Oman) City Baushar PC 130 postal/Zip Code 436 Country Oman phone (+968) 2200 5400 / 2200 5420 email info@omanavenuesmall.com Website www.omanavenuesmall.om Description Carrying out expansion of an existing shopping mall period 2020 Status New Tender tender Categories Construction & Contracting, Leisure & Entertainment tender products Retail Developments

roaDS & inFraStruCture WorkS projeCt – Dubai harbour budget $6,000,000 project number WPR3244-U territory Dubai Client Meraas Development (Dubai) address Emaar Square, Bldg 1, Level 3 & 5 City Dubai postal/Zip Code: 123311 Country United Arab Emirates phone (+971-4) 511 4900 / 378 8899 Fax (+971-4) 332 2707 email customerservice@meraas.ae Website www.meraas.com Description Execution of roads and infrastructure works at a harbour period 2019 Status New Tender main Consultant AECOM Middle East (Dubai) tender Categories Roads, Bridges & Infrastructure tender products Infrastructure, Roads Construction

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40 May 2018

PROJECT INTELLIGENCE, TENDERS & SUPPLY CONTRaCTS IN ThE MIDDLE EaST

MiddleEastTenders.com is used by:

Contractors & Sub-Contractors Consultants, Design, FEED & EPC Companies Manufacturers, Suppliers & Traders Service Providers, Insurance & Banking Sectors Recruitment, Logistics & Facilities Management and many more...

MiddleEast Tenders provides a comprehensive, up-to-date information related to projects across the Middle East region.

Easy Search for new & ongoing projects by country, location, client and category.

Get the initial information as and when the projects announced.

Get complete projects information at a single place through a hassle-free search.

Get notified through the daily mail alerts about the construction cycle of the projects.

Stay updated as and when consultants / contractors are appointed for the projects.

Tel: +971 2634 8495 Fax: +971 2 631 6465 Email: sales@middleeasttenders.com www.MiddleEastTenders.com

Tenders

Middle East tenders UAE le meriDien mina SeYahi hotel extenSion projeCt (r1086) project number WPR3206-U territory Dubai Client Wasl Asset Management Group (Dubai) City Dubai postal/Zip Code 23073 Country United Arab Emirates phone (+971-4) 398 6666 Fax (+971-4) 398 8111 email customercare@wasl.ae Website www.waslproperties.com Description Carrying out extension of an existing hotel involving construction of a new 30-storey building post Date April 8, 2018 Status New Tender main Consultant Next Engineering Consultants (Dubai) Foundations/enabling/piling Contractor Stromek Emirates Foundations LLC (Dubai) tender Categories Hotels, Prestige Buildings tender products High-rise Towers, Hotel Construction

ShamS reSiDential toWer projeCt – al reem iSlanD project number WPR1915-U territory Abu Dhabi Client ALDAR Properties PJSC (Abu Dhabi) address 13th Floor, Abu Dhabi Chamber of Commerce Tower City Abu Dhabi

Country United Arab Emirates phone (+971-2) 810 5555 Fax (+971-2) 810 5550 email info@aldar.com Website www.aldar.com Description Construction of a residential tower comprising 28 floors, including basement floors period 2019 Status New Tender main Consultant JLA (Jamal Lamiri ALaoui Architects) International Engineering LLC (Abu Dhabi) Shoring Contractor Dutch International Contracting Company LLC (Abu Dhabi) Foundations/enabling/piling Contractor Dutch International Contracting Company LLC (Abu Dhabi)

tender Categories Prestige Buildings tender products High-rise Towers, Residential Buildings

pumpinG Station upGraDe projeCt budget $6,000,000 project number WPR3008-U territory Abu Dhabi Client Abu Dhabi Distribution Company (ADDC) City Abu Dhabi postal/Zip Code 219 Country United Arab Emirates phone (+971-2) 416 6000 / 642 3000 Fax (+971-2) 642 6033 Website www.addc.ae

Description Carrying out upgrading work of a pumping station period 2019 Status Current Project main Consultant Dr MH Ali El-Saie Consulting Engineers (Abu Dhabi) main Contractor Tecton Engineering & Construction (Abu Dhabi) tender Categories Water Works tender products Water Transmission & Distribution Networks

Saudi Arabia inFraStruCture WorkS projeCt – tharWa toWn budget $5,000,000 project number WPR3095-SA

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42 May 2018

Tenders

territory Saudi Arabia Client name Tharwa Saudi Company (Saudi Arabia) address Aziz Street, Al Khobar Business Gate City Al Khobar 31952 postal/Zip Code 3969 Country Saudi Arabia phone (+966-13) 849 1111 / 849 0111 email info@sauditharwa.com Website www.sauditharwa.com Description: Execution of infrastructure works & land reclamation period 2020 Status Current Project main Contractor Ansab General Contracting (Saudi Arabia) tender Categories Construction & Contracting, Roads, Bridges & Infrastructure, Sewerage & Drainage, Water Works tender products Infrastructure

International Consultant (Kuwait) Design Consultant-2 Nabil Gholam Architecture & Planning (Lebanon) master plan Consultant SSH International Consultant (Kuwait) master plan Consultant-2 Nabil Gholam Architecture & Planning (Lebanon) tender Categories Prestige Buildings tender products Residential Buildings

roaDS, poWer & inFraStruCture FaCilitieS projeCt – northern jahra loW-CoSt houSinG project number WPR3026-K territory Kuwait Client Public Authority for Housing Welfare – PAHW (Kuwait) City Safat 13094 postal/Zip Code 23385

Country Kuwait phone (+965) 2530 1000 Fax (+965) 2538 7464 Website www.housing.gov.kw Description Construction of roads, power and other infrastructure facilities for a major low-cost housing project Closing Date April 30, 2018 Status New Tender tender Categories Water Works, Roads, Bridges & Infrastructure, Sewerage & Drainage, Power & Alternative Energy tender products Electric Power Transmission & Distribution, Infrastructure, Roads Construction

Jordan WinD enerGY projeCt – jarF alDaraWiSh project number WPR3103-J

territory Jordan Client Mass Jordan for Renewable Energy Company (Jordan) address Amman Khalda – Wasfi Al-Tall Street before Dabouq Bridge – Complex no. 342, ATG Building – 3rd floor City Amman 11953 postal/Zip Code 546 Country Jordan phone (+962-6) 537 9063/64/65/66 / (+962-79) 559 4469 Fax (+962-6) 537 9061/62 email info@massgroupholding.com Website www.massgroupholding.com Description Construction of a wind energy plant with capacity of 100MW period 2019 Status Current Project main Contractor General Electric International – GE (USA) tender Categories Power & Alternative Energy tender products Wind Energy

Kuwait heSSah toWerS projeCt – heSSah al mubarak DiStriCt project number WPR3043-K territory Kuwait Client United Real Estate Company (Kuwait) address Sharq, Khalid Bin Al-Waleed Street, Shaheed Tower, Floor 6, 7, 8, 9 City Safat 13023 postal/Zip Code 2232 Country Kuwait phone (+965) 805 225 Fax (+965) 244 1003 email urc@urc.com.kw Website www.urconline.com Description Construction of two skyscrapers comprising a total of 212 units Status New Tender Design Consultant SSH

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May 2018 43

Last Word

The Science of Green Cooling Big Project ME speaks to Johan Samuelsson, vice president, Middle East and Africa, Trane, about how HVAC systems are embracing green concepts to help improve efficiency ratings for buildings How can HVAC systems help

that are responsive,

contribute to the overall

intuitive and efficient?

green rating of a building?

There is a direct link between saving energy from HVAC and other building systems. It is imperative to keep a building running at optimal performance and to choose sustainability experts who can transform your buildings’ environments with digitally driven solutions. A range of upgrade solutions should be available to give building owners the precise, measurable, digital control to analyse, optimise or modernise systems based on business priorities.

The industry is working through its national associations to engage nongovernmental organisations (NGOs) and governments around the world to ensure that the Montreal Protocol is used to transition away

One third of the energy use in buildings comes from heating, ventilation and air conditioning (HVAC) systems. When building owners use less power, they reduce the number of emissions released by power plants, including the amount of CO2 that goes into the atmosphere – thus creating greenhouse gas emissions.

When building owners save energy, those energy savings can be directly calculated to saving greenhouse gas emissions, which contributes to the overall green rating of a building.

How can building management systems combine with HVAC systems to create systems

from high-GWP refrigerants in a way that is technically feasible and allows for service. The most recent and most effective industry development is introduction of the bipartisan bill, American Innovation and Manufacturing Act of 2018, implemented on February 15, 2018 to advance nextgeneration technologies as alternatives to HFCs.

that are environmentally responsible, can be used safely and that deliver the performance and efficiency that building owners and managers require. It is important to take a balanced approach considering environmental impacts, safety and efficiency.

What is in the R&D pipeline for Trane, and what sort of impact do you anticipate

Can you discuss the region’s

these products having?

shift from HCFCs to HFOs?

For more than 100 years, Trane has been innovating at a pace beyond that of the rest of the industry.

For example, our state-ofthe-art HVAC Research and Development Testing Facility in Epinal, France enables us to verify the performance of our comprehensive equipment portfolio. It serves as a validation centre for new

With growing concerns about the impact on the environment and climate change, pressure has been mounting for years to reduce the use of high-GWP refrigerants across many applications and industries.

In designing building systems with lower-GWP refrigerants, it’s a matter of trade-offs in finding options

product development, enabling the simulation of all operating conditions encountered during the life of HVAC equipment.

Furthermore, as part of our global Climate Commitment, we’ve pledged to invest $500 million into productrelated research and development over the next five years, so as to fund the long-term reduction of greenhouse gas emissions.

To date, our climate commitment has supported the avoidance of approximately 6.7 million metric tons of CO2 globally, which is the equivalent of avoiding annual CO2 emissions from energy used in more than 700,000 homes. By 2030, we expect to have reduced our carbon footprint by 50 million metric tons.

“It is imperative to keep a building running at optimal performance and to choose sustainability experts who can transform your buildings’ environments with digitally driven solutions” 44 May 2018

The Big Project ME Awards has become an important annual event to attend. Over the years, we have witnessed the efforts from the organiser to promote the best projects in the region and recognise the efforts and achievements of the contractors. I wish that the event will become even more successful!

YU TAO

PRESIDENT & CEO CHINA STATE CONSTRUCTION ENGINEERING CORPORATION (MIDDLE EAST) (L.L.C.)

26 November 2018 Double Tree Hilton JBR Dubai, United Arab Emirates bigprojectmeawards.com

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