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127
OctOBER 2016 meconstructionnews.com
THE BUSINESS OF CONSTRUCTION
Building in THE clouds Big project me takes the high road to find out how a contractor built a route to the uae’s highest peak
GETTING CLOSER TO THE TOP...
Getting closer to the top of the tallest mountain in the UAE will soon be a lot easier, thanks to the fleet of Volvo construction equipment used in the building of the road to the Jebel Jais mountain. When it’s finished, the route will run from Ras Al-Khaimah right to the 1,910 metre summit. The road has already become a popular destination for motoring enthusiasts, who like to show off what their machines can do. But when the road runs out, that’s where the Volvo VIDEO http://goo.gl/FPsU43
operators show off their machines. And it’s impressive to see what they can do. If you want to get closer to the action, scan the code and watch the video. Building Tomorrow.
Contents
Issue 127 October 2016 08
16
18
26
36
48
06 ME Construction News.com
16 Education investment
42 Avoiding floor failure
08 Oman construction to grow
18 SNC-Lavalin
54 NATRANS expo
12 $214m QAIA expansion opens
26 Road to the top
56 Top tenders
14 KSA strategic real estate
36 The steel revolution
60 The water challenge
OnlIne
The biggest stories from Big Project Middle East’s home on the web The bIg pIcTure
International investment into Duqm fuels healthy growth expectations InTernaTIOnal news
Phase II of New Terminal Project at Amman International Airport is ready for business MarkeT repOrT
Knight Frank report examines the National Transformation Program (NTP) strategic objectives and KPIs
analysIs
JLL report finds growing interest in investing in private sector education in MENA region In prOfIle
Gavin Davids meets Ziad Awad to discuss the contractor’s plans for the region sITe VIsIT
Big Project ME takes the high road to visit the Jebel Jais Mountain Road project in RAK In prOfIle
Big Project ME interviews the CEO of Emirates Steel to find out how things panned out in H1 2016
cOMMenT
Kevin Storey provides some valuable advice on industrial floor specification shOw preVIew
Highlighting the future of the transport and smart cities sectors Tenders
Big Project ME lists the top tenders for the month of October 2016 lasT wOrd
Henning Sandager outlines how Grundfos is helping the UAE’s agriculture industry reduce its water usage October 2016 1
Introduction
Coming up next...
N
ext month is going to be quite a busy month for the editorial team here at CPI Towers. Not only do we have the upcoming Big Project Middle East Awards 2016 on November 22, but we’ve also got the second annual awards for our sister publication, Middle East Consultant, happening on November 8. The nomination deadline for both awards are October 19 and October 8, respectively. There’s not a lot of time left, so please do send in your nominations to ensure you’re in with a chance of taking home a trophy, come award night. More information can be found at www.bigprojectmeawards.com and www.meconsultantawards.com On top of both those major events, we’ve also got something that we’re very excited about – our first ever conference as a magazine! November 1, 2016 will be the date and Building Information Modelling (BIM) will be the topic. Let me tell you, there’s been a tremendous amount of interest coming through, and although we’re still a month out from the event, we’re already near peak capacity for attendees. So if you’re interested in BIM, I do encourage you to register and attend. While I know there’s been a lot of conferences about BIM over the years, I’m quite confident in saying that none of them have talked about
eDItorIAL eDItor gAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480
PUBLISHING DIrector RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471
oNLINe eDItor BEN FLANAgAN ben.flanagan@cpimediagroup.com SUB eDItor AELRED DOYLE
eDItorIAL DIrector VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5472
aelred.doyle@cpimediagroup.com ADVertISING coMMercIAL DIrector JUDE SLANN jude.slann@cpimediagroup.com +971 4 375 5496
Supported by
coMMercIAL DIrector MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com +971 4 375 5497 SALeS MANAGer FAAJU ABDULFATAH
M
ﺟﻤﻌﻴﺔ اﻟﺸﺮق اﻻوﺳﻂ ﻟﺼﻨﺎﻋﺎت اﻟﻄﺎﻗﺔ اﻟﺸﻤﺴﻴﺔ
Middle East Solar Industry Association
Empowering Solar across the Middle East
2 October 2016
faaju.abdulfatah@cpimediagroup.com +971 4 375 5495
the topic of BIM in the manner in which we’re going to be doing at the ME BIM Summit 2016. You can find more information about the agenda and speakers at: www.mebimsummit.com Finally, looking at this month’s issue, I was delighted to speak to Ziad Awad, the head of Region, Middle East, India and Africa for SNC-Lavalin. It was an illuminating chat, and Ziad’s knowledge and insight about the region is well worth listening to. Our cover story this month is about the Jebel Jais Mountain Road being built in Ras Al Khaimah. Having been up at the site recently, I can personally assure you that building it has been no easy task. Congratulations are certainly due to General Mechanic Contracting and to FAMCO for making the project come to be. It’s been a long road (no pun intended) but the view from the top certainly makes all the effort worth it!
Gavin Davids editor gavin.davids@cpimediagroup.com @MecN_Gavin
MArKetING MArKetING MANAGer LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498 DeSIGN Art DIrector SIMON COBON cIrcULAtIoN & ProDUctIoN DIStrIBUtIoN MANAGer SUNIL KUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 ProDUctIoN MANAGer VIPIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 WeB DeVeLoPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI SHAHAN NASEEM
PUBLISHeD By
Registered at IMPZ PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com FoUNDer DOMINIC DE SOUSA (1959-2015) PrINteD By PRINTwELL PRINTINg PRESS LLC © Copyright 2016 CPI. All rights reserved while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
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Visit us at WETEX 2016, 4-6 October Zabeel Hall 1, SSP#8, Dubai International Convention & Exhibition Centre, UAE
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CONSTRUCTION
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Dubai Ruler launches Jumeirah Central
AUTONOMOUS MAChINES
Building driverless vehicles is extremely difficult both technically and, of course, in terms of winning public support. I think it will be similar when it comes to
PROPERTY
construction machinery.
‘Unique trends’ seen in UAE property markets
Volvo is testing this kit,
While it’s great that convincing the industry it is absolutely safe will be In pictures: Sheikh Mohammed launches Jumeirah Central project in Dubai
a big part of the process. Name withheld, online comment
CONSTRUCTION
India’s Shapoorji Pallonji in Dubai property debut
LI-fI YET TO LIghT UP
Of course Li-Fi [the technology that uses visible light to enable CONSTRUCTION
high-speed wireless data
Dubai’s Nakheel unveils Nad Al Sheba mall plan
of radio frequency] is too
communication instead nascent to be effective. The technology comes with its pros and cons: You can’t pass data through walls, it needs compatible LEDs, and other lights could interfere with the
CONSULTANT
Dubai: UK firm to work on Emaar’s The Tower 6 October 2016
Video: 100+ excavators dismantle Chinese overpass in one night
internet signal. Vipin Singh, via website
Empowering customers with GE’s 9HA, the World’s Largest, Most Efficient Gas Turbine #PoweringEveryone
The big picture
Transport infrastructure investment Growth in Oman’s construction industry will come primarily from investment in transport infrastructure projects.
Oman construction sector tipped for growth International investment into Duqm fuels healthy growth expectations Oman’s construction sector is expected to post healthy growth in the coming years, following major international investments into Duqm, analysts have said. Global investors, mainly from China, have begun to fill the fund-raising gap caused by low oil prices and the subsequent cuts to government spending on infrastructure projects. According to a report by the Oman Daily Observer, analysts predict that the Sino-Oman Industrial City – the result of the Omani government’s efforts to involve private partnerships in major projects – will help underpin growth in the sultanate’s construction industry. This will accelerate growth from an unexpected 2.4% this year – the lowest since 2000 – to 4.9% by 2019, the analysts said. “Although Oman possesses 8 October 2016
a degree of private investment in its construction sector, the state still plays a pre-eminent role in funding infrastructure projects, and as oil accounts for approximately 85% of government revenue, the collapse in price has had a negative impact on its ability to finance projects,” said David Lee, an infrastructure research analyst at Business Monitor International. Meanwhile, a number of sectors are expected to show healthy growth, with transport, electricity and water projects all likely to see strong improvements over the medium term. “Growth in Oman’s construction sector will come primarily from investment in transport infrastructure projects and the government’s push for private partnership to mobilise
investment in the construction sector. This will become increasingly important as global oil prices remain low, curbing government spending,” Lee said. Residential and nonresidential construction is also expected to receive a boost, supported by a growing tourism industry and popular support for social infrastructure projects. In May 2015, an agreement was signed between Oman and China for a consortium
4.9% Predicted growth rate of Oman’s construction industry in 2019
to develop three separate zones – heavy manufacturing, light manufacturing and a mixed-use area. In September, it was revealed that the cost of a planned 400km gas pipeline between Iran and Oman is set to rise due to a chance in the subsea route. The subsea section of the pipeline could be rerouted and the design changed, a Reuters report said, citing an unnamed source. While the proposed new route will be shorter, it could go deeper – up to 1,000m, double the depth of the earlier plan. Capacity may also be raised. “We expect slight upward budget adjustment because of this,” the source said. “But we have not finished the deep route survey yet.” Despite the potential change, the project is not being shelved.
The big picture
Mecca projects ‘to complete in 3 years’ Total cost of expansion works is expected to be more than $100 billion Mecca’s mayor has said that construction projects to expand the capacity of the Grand Mosque and other Islamic holy sites will be completed within three years, enabling Saudi Arabia to accommodate more pilgrims. Speaking to Reuters, Osama bin Fadl Al Bar said pilgrimage-related projects were a top priority for the kingdom. He asserted that they would be finished on time, despite the widespread delays that have hit the Saudi construction industry in the wake of low oil prices. The total cost of the expansion work is expected to be more than $100 billion, Reuters said, covering both land and infrastructure work. “All of these projects are being developed to serve our guests and accommodate more of them,” said Bar, adding that the new
King Abdulaziz International Airport and the Grand Mosque expansion will be finished by 2017 or 2018 at the latest. A high-speed railway between Mecca and Madinah is scheduled to be completed by the end of 2016, with testing planned prior to its public launch in 2017. A final 4km tunnel project that includes two metro stations will also be completed by 2020, Bar added, pointing out that this will form part of the planned $16.5 billion Mecca metro project. These planned works come on
top of recent expansion projects and the construction of dozens of hotels in the Holy City. These include the world’s biggest clock tower and expanded access routes across Makkah, which have cost billions of dollars. Once work on the Grand Mosque is finished, it will have a total capacity of 2.2 million worshippers, up from the 600,000 it currently holds. Earlier this year, it was announced that the northern courtyard of the Grand Mosque would be home to “the world’s
$100 billion Total cost of expansion works
largest folding umbrella”, a report in the Saudi Gazette said. Set to be installed over a period of six months, the umbrella project consists of eight high-tech giant umbrellas and 54 smaller ones. The larger umbrellas will be 45m in height, weigh 16t and provide 2,400sqm of shade when open, the newspaper said. The 54 smaller umbrellas installed in the northern courtyard will cover a total area of 19,200sqm. 122 benches for worshippers are also being constructed. Infrastructure work for the canopies started in March 2016. The shaded area will have the capacity to accommodate 400,000 worshippers and will stretch from the King Fahd Expansion structure to the King Abdullah Expansion structure.
Major investment The total cost of the expansion works will come to more than $100 billion.
October 2016 9
The big picture
Dubai Holding’s Jumeirah Central megaproject gets the greenlight Dubai Ruler announces plans for 4,366,443sqm ‘all-seasons city district’ A major new city district dubbed Jumeirah Central is set to be built in Dubai, according to plans unveiled on Saturday. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, announced the launch of the project, which will span 4,366,443sqm of gross floor area and house some 35,000 people. The “all-seasons city district” will include 836,127sqm of retail space including three malls and 418,063sqm of outdoor shopping space, in addition to 7,200 hotel rooms. It is set to be built on Dubai’s Sheikh Zayed Road, close to the Mall of the Emirates.
The Jumeirah Central master plan involved collaborative work of over 19 government and private agencies, experts and consultants under the leadership of Dubai Holding over the last two years, according to UAE state news agency WAM. It will include a multi-modal transport network, environmentally friendly transport options and aerial gondolas. Half of the Jumeirah Central district will be open space, and it will offer 92,903sqm of climatecontrolled arcades for use all year round. Plans also include a cycling network that spans over 33 parks and open spaces. “As our vision for future cities evolves, Dubai will
continue to set the benchmark for city development across the globe,” Sheikh Mohammed said. “Jumeirah Central is a clear milestone in our journey towards building the city of the future and the creation of engaged and happy communities. We will not stop investing in our economy, and these projects are tools to expedite that journey of growth. We are confident in the strength of our economy and are optimistic for the future of our nation. To that end, our vision will continuously evolve and expand.” “Jumeirah Central is a result of extensive research into future urban development and the creation of more
cohesive societies. It is a clear demonstration of our leadership’s vision, aiming to further Dubai’s global position as an attractive destination for residents and tourists alike,” said Mohammed Abdullah Al Gergawi, chairman of Dubai Holding. “The uniqueness of this project will not only be a model for advanced urban development, but will also play a key role in enhancing the quality of life and in shaping future generations. “All project plans and designs have been endorsed by government authorities in Dubai, and we expect to start development in the coming months.”
A city for all seasons Jumeirah Central will span 4,366,443sqm and will include three malls and house around 35,000 people.
“This project will not only be a model for advanced urban development, but will also play a key role in enhancing the quality of life and in shaping future generations”
10 October 2016
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The big picture
20%
1. IndIa’s shapoorjI pallonjI makes dubaI property debut Shapoorji Pallonji’s property arm plans to build a 45-storey tower in Dubai, in its first real estate development outside India. The Indian conglomerate, which has decades of experience as a contractor in the Arabian Gulf, plans to build the Imperial Avenue project in the Downtown Dubai district. Developed by Shapoorji Pallonji (SP) International Property Developers, the project will be “testament to the company’s long-term commitment to the Middle East”, a statement said. The tower is set to have 424 “luxury” units of between one and five bedrooms, with five levels of parking. It will also have a 10,000 sq ft lobby, rooftop infinity pool, fitness centre, squash courts and private function hall. The move comes off the back of 45 years of experience as a contractor in the Middle East, working on projects such as Rove Hotels and Mudon Villas. SP International Property Developers has projects planned in countries like the UAE, Saudi Arabia and Kuwait.
12 October 2016
Sales volume of new buildings in the US grew 20% in August 2016, compared to the previous year
2. $214m expansIon opens at amman aIrport The $214 million second phase of the New Terminal Project at the Queen Alia International Airport (QAIA) in Amman, Jordan, which added 43,000sqm to its total area, was recently completed by Airport International Group (AIG), the consortium executing the project. The project is designed
to raise the airport’s annual passenger capacity from the current seven million to up to 12 million passengers, with future plans to increase capacity even further to 16 million passengers per year. As a result of the expansion, the total number of gates in operation at the airport has nearly doubled from 13 to 25 and two new fixed-link bridges can now accommodate the Airbus A380.
The expanded facilities also include two new business lounges, two new duty-free areas and eight new prayer rooms, as well as larger monitors, additional electronicdevice charging stations and an upgraded Wi-Fi system. In addition, 10 additional travelators, 24 escalators and 18 lifts have been installed in the expansion to enhance QAIA’s efficient transit process, the statement added.
The big picture
4. australIa’s brookfIeld multIplex to rebrand
6 million Estimated annual traffic on 1km-long cable car service being built across Amur River between Russia and China
2
1
445
3
Pune Metropolitan Regional Development Authority issues notices to 445 construction sites
3. murray & roberts to close Infrastructure, buIldIng busInesses South Africa-based Murray & Roberts has announced that it will be closing its infrastructure and building businesses as part of a strategic disposal of assets as it seeks to focus its attention on the global natural resources market, its chief executive has said. Included in the disposal of assets is Genrec, the company’s steel-making and engineering
services group. Negotiations with prospective buyers for the businesses are at an advanced stage, the company confirmed. “The decision to dispose of the infrastructure and building businesses supports the Group’s long-term strategy to focus its business on the global natural resources markets, and follows an extended period of careful planning and consideration,” said Henry Laas, CEO of the group.
4
This transaction will exclude the Group’s investment in the Bombela Concession Company (BCC), Bombela Civil Joint Venture (BCJV) and Bombela Operating Company, Laas added. Operations in the Middle East will also be excluded from the sale, with the priority being to complete current projects, the last of which is expected to be finished in December 2017. No new projects are being pursued.
Australia-headquartered contractor Brookfield Multiplex, which has worked on several high-profile projects in the UAE and Qatar, is to rebrand. It will be known as Multiplex but remain a Brookfield company, the contractor said in a press statement. “This is a time for us to rebrand and to ensure our own unique construction identity, both within the Brookfield group and with our external stakeholders as a global construction business,” the statement said. “Aside from our name and logo changing, it’s business as usual. There are no operational or organisational changes being made.” Multiplex will remain part of Brookfield Business Partners, a business services and industrial company in which Brookfield Asset Management completed a spin-off in June. The Brookfield Asset Management entity Brookfield Property Partners is also in a joint venture with The Investment Corporation of Dubai (ICD) to build a $1 billion office tower within the emirate’s main financial centre, Dubai International Financial Centre.
October 2016 13
Market report
Saudi arabia Strategic real eState
The National Transformation Program (NTP) outlines strategic objectives and key performance indicators for public, private and nonprofit sectors
Figure 1: Headline housing targets of the National Transformation Plan
1.5 million residential units in 7 years
SAR 13.5 billion ($3.6 billion) in 5 years to develop state lands & large-scale residential projects
60 days average time required to approve new residential projects
All land holdings to be surveyed
14 October 2016
individual initiatives or forming public-private partnerships (PPPs). Key among these: Plans to introduce a Real Estate Investment Trust This is likely to institutionalise the real estate market in Saudi Arabia and attract foreign investors while offering them the opportunity to diversify their investment. The creation of a REIT is likely to encourage commercial investment in office towers, retail centres and hotels, which provides institutional investors with diversity, longterm stability and growth. Approval of a ‘white land’ tax on undeveloped land Under the regulation, owners of undeveloped land plots of 10,000sqm and above are subject to an annual 2.5% tax of the land value. This measure aims at encouraging land owners to develop more homes to the market in order to tackle the shortage of housing in the Kingdom and avoid speculative land trading. Development of a homebuilding programme The Ministry of Housing announced plans to create its own property development company and start a mortgageguarantee fund to boost the rate of lending growth. The new entity will essentially provide plots of lands to businesses planning to develop homes, and also help them secure financing by offering loan-guarantees.
Figure 2: Factors restraining the residential market High land prices Lack of alternative investments
Lack of serviced land
Financing
Potential taxation
Affordability
Quality of construction
Size of units
Zoning
Suitability of stock
The creation of a state-owned mortgage firm aims to expand the country’s mortgage market and increase real estate access. Viewpoint The $ 71 billion National Transformation Program (NTP) details projects and initiatives, as well as performance indicators, which aim to transform the Saudi economy into a powerhouse led by the private sector, which the real estate industry forms an integral part of. While efforts to tackle the issues surrounding the housing market in Saudi Arabia have been on-going before the NTP announcement, we welcome these measures as a step in the right direction, proving that there is willingness to change. This in turn is expected to translate into
strong prospects in the market. In the short run, the approval of a white land tax on undeveloped land is expected to see land owners review their holdings and develop value optimisation strategies to maximise their asset’s productivity and improve returns. Through recognising their real estate capabilities, undertaking comprehensive valuations and developing high operating assets, land owners are well positioned in light of the proposed tax. This in turn is likely to increase development activity across the Kingdom. Over the medium to long term, these development strategies are expected to transform cities for the better, improving the quality of life while maintaining affordability and safety of the local communities.
Sources: Knight Frank Research
Among the targets published earlier in 2016 is a raft of objectives that aim to increase the property sector’s contribution to the country’s GDP from 5% to 10% by 2020 – the equivalent of $74.8 billion. Under the new plan, both the public and private sector are encouraged to take a role in ensuring the growth of the property sector, either through
Rajiv Nair, Plant Manager Alma Cabrol
We invested in the region’s fastest growing free zone, now we’re on a roll.
With investments of $25 billion, competitive energy rates and seamless sea-road-air access to the region’s largest markets, it’s no wonder so many companies choose to start their journey in SOHAR, one of the world’s fastest growing Port and Freezone developments.
News analysis
Investor Interest In prIvate educatIon sector grows JLL report finds interest in alternative investments growing in MENA Rising demand for private schooling is driving interest from real estate investors, developers and builders looking for alternative investments, a new report from Jones Lang LaSalle has found. With the supply of quality assets in traditional sectors such as office, retail, residential and hospitality limited, MENA investors are increasingly drawn towards investing in private schools.
The report – entitled ‘Schools In’ – will be released as part of Cityscape Global in Dubai. It reveals that the demand for private schools is being driven by both the rising number of expatriates and the desire of more local families to have better quality education for their children. “The requirement for around 350 private schools presents significant opportunities for real estate investors, developers and builders,” says Craig Plumb, head of Research, MENA, JLL. “The education sector has sparked the interest of many real estate investors right across the MENA region. Private equity firms in particular have been very active in recent years, and they will continue to play a pivotal role in the expansion of the private education sector here.” 16 October 2016
educational interest The MENA education sector has sparked the interest of many real estate investors from across the region.
News analysis
While MENA investors have traditionally focused on four traditional sectors – office, residential, retail and hotel – the shortage of quality income producing assets and declining returns in some locations have forced them to consider alternative investments, Plumb explains. “With new investment vehicles facilitating the investment in schools, alternative investments diversify the investor portfolio and have the potential to improve the overall risk-return profile. Both retail investors and institutions are seeking greater exposure to non-correlating alternative investments that provide consistent income with low volatility.” The region’s school age population is growing at a rapid pace, with Dubai, Abu Dhabi, Riyadh, Jeddah and Cairo all requiring significant investment in new private schools by 2020. According to the Federal Competitiveness and Statistics Authority, 75% of students in the UAE attend private schools, of a total number of students of 629,000 in 2015. While Saudi Arabia and Egypt have a lower percentage of students in private schools, it has still been the fastest growing sector in the market for both countries in recent years. Private schools in the Kingdom increased from 5% of all new enrolments in 2011 to 11% in 2014. In Egypt, the private sector accounted for 10% of 18 million students enrolled in the 2015-2016 academic year. This increase in demand has been backed up by financial figures, with a 2015 report by Abu Dhabi Educational Council (ADEC) finding that private schools in the UAE capital earned $816 million in profit over the preceding four years. Between 2010 and 2015, investment in Abu Dhabi private schools reached $626.19 million, with 45 new private
schools added in that time. “Education is regarded as a lucrative business opportunity,” says Plumb. “The school age population is growing, and this is the main attraction for the education sector. In Dubai, for example, we expect the expatriate population to grow at an average rate of 4.7% over the next five years, and as expatriate workers move with their families; this creates demand for private education facilities.” “There are three major drivers of the education sector for real estate investors: the strength of demand, the attractive financial returns available and the alignment of this sector with government policies to improve educational standards across the region.” Country summary highlights United Arab Emirates
In its 2021 vision, the UAE government emphasises the importance attached to improving the education sector. Following the safety of its people, knowledge was addressed early in the vision summary, indicating the weight it holds. • Dubai: Has one of the fastest population growth rates in the region. According to Oxford Economics, Dubai’s population is forecast to increase from 2.54 million people in 2016 to 2.90 million people by 2020, a CAGR of 3.5% per annum. A total of 53 new schools are likely to be required in Dubai by 2020, with the majority (36) being private schools. • Abu Dhabi: The population of Abu Dhabi (defined as the Abu Dhabi region, not the entire emirate) was 1.72 million people in 2015. It is estimated that the population will grow at a CAGR of 2.9% per annum between 2016 and 2020 and reach 1.99 million people. Abu Dhabi has a relatively young population,
with 70% under the age of 40 years. A total of 44 new schools will be required in Abu Dhabi over the next five years, split almost 50:50 between the public and private sectors. Saudi Arabia
Recognising the need to improve the quality of education in KSA, the government has allocated an average of 23% of the national budget to building new schools and improving existing schools over the past ten years. • Riyadh: As of 2015, expatriates accounted for 42.1% of Riyadh’s population. Although this percentage is below that of Jeddah, it is expected to reach 42.8%. A total of 395 new schools will be required to house the growing schoolage population of Riyadh by 2020, with 154 of these in the private sector. • Jeddah: The school-age population in Jeddah is currently just over one million. This is expected to grow by an average of 2.2% per annum, to reach 1.2 million by 2020. The growing school age population will add pressure on existing schools, creating an opportunity for the private sector to capture some of the growing demand. A total of 194 new schools are forecast to be required in Jeddah by 2020, 67 of these in the private sector. Egypt
In its 2030 Egypt Vision, education and training is a main pillar for the government. The vision highlights that a high-quality education and training system will be available to all, without discrimination, within an efficient, just, sustainable and flexible institutional framework, providing the necessary skills to students and trainees to think creatively, and to empower them technically and technologically. October 2016 17
In profile
“At A time when others Are retrenching or scAling down, we’re ActuAlly trying to focus much more on this region. the middle eAst is A strAtegic region for us And the compAny is quite focused on mAking sure thAt we build on our strong bAse here” Big Project ME speaks to Ziad Awad, head of the Middle East and Africa Region for SNC-Lavalin, about the infrastructure contractor’s plans in a challenging regional market 18 October 2016
In profile
October 2016 19
In profile
t
he drop in international oil and gas prices over the last few years has had a dramatic impact on the economic outlook of the GCC countries, with all six members forced to deal with a shortfall in revenues, while also running a fiscal deficit. While this has forced governments to look at alternative sources for funding, the knock-on effect for the construction and infrastructure development industry has been the cancellation or postponement of less urgent projects, while new project awards have also seen a significant drop in 2016, compared to the previous year. Although some GCC countries have strong reserves and healthy sovereign wealth funds to tap into, there has been a definite shift towards implementing a thorough restructuring of existing economic and market structures, while also looking for additional sources of revenues through cost savings and efficiencies. As such, the general support for the regional construction industry is likely to come from countries with initiatives that allow them to diversify from the oil & gas industry, while clearly laid out and implemented transformation plans (such as the Saudi Arabia, UAE and Qatar Vision 2030 plans) will also be a major help. Furthermore, the presence of high-profile mega-events such as Dubai Expo 2020 and the 2022 World Cup in Qatar will also allow contractors in those countries the opportunity to win work that will support the 20 October 2016
successful hosting of those events. However, certain sectors will see strong investment from regional governments as a consequence of the aforementioned diversification away from oil and gas and the increased need for social infrastructure that supports a growing urban and young population. These support sectors – health, education, power and water, energy and transport – are likely to be major sources of opportunity for established infrastructure and development contractors, such as SNC-Lavalin. “It goes without saying that times are tough and that the oil & gas industry is in somewhat challenging times because of the oil prices,” says Ziad Awad, head of the Middle East and Africa Region for SNC-Lavalin Group. “The decrease or significant fall in oil prices will definitely impact the different parts of the investments or industries. However, I would say that the GCC really provides tough times Ziad Awad says that the decrease in oil prices will have a definite impact on investment in the GCC.
“The decrease in oil prices will definitely impact the different parts of the investments or industries. However, I would say that the GCC really provides an opportunity because it is able to weather the challenges better than any other region”
an opportunity because it is able to weather the challenges better than any other region.” Looking at the oil & gas industry, Awad says there is an opportunity for contractors associated with the field to succeed, if they position themselves correctly in the market. “As you know, the Middle East continues to produce oil at a maximum capacity. With that comes a lot of work, in terms of maintaining that capacity. There’s quite a bit of maintenance potential and sustaining of capital work that is needed, and I think that SNC-Lavalin is in a great spot – especially after the acquisition of Kentz and Valaris, and the successful integration of both those companies, which was completed in 2016. We believe that we have significant experience and are well positioned to support our clients and help them meet their aggressive targets going forward.” Having joined the company three years ago, Awad has been given a mandate by SNC-Lavalin’s
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In profile
senior management to help the different business units deliver on all their strategies. He studied engineering at Nottingham University and also has a PhD in International Economic Relations. Furthermore, he has also worked across the whole value chain, in regions as diverse as the Middle East, Africa, the Far East and Europe. Therefore, he is ideally positioned to help build on SNC-Lavalin’s ambitions for the Middle East. “I’ve worked in a multi-business unit environment, where you actually need to leverage a sense of ‘each one for the benefit of all’, and that’s similar to what we’re doing here at SNC-Lavalin,” he says. “We’re a multi-business unit and environment where it’s important to focus on the individual business units, but we must also be able to offer an integrated approach and basically become a one-stop shop. That takes a lot of work, in terms of integration and putting the right structure in place.” “My first job with SNC-Lavalin was actually this one. I was put in charge of heading up the regional operations. Basically, my mandate was to put the right platform in place for the different business units to deliver all their strategies. “When you look at what SNC-Lavalin can build across different industries, it’s really quite impressive. We’ve built a number of projects – back in Canada – across the infrastructure, power, oil & gas and mining and metals spheres. So this was a very interesting job for me, because the challenge was how can we leverage this strength and potential to make sure that we actually work closely with our clients here in the Middle East, and really add value in a manner that differentiates us from our competition.” With a workforce of 10,000 workers in the GCC, and a strong presence in Saudi Arabia, Qatar, the 22 October 2016
SNC-LAvALiN PRojECtS woN iN thE LASt 12 MoNthS Five-year engineering consultancy agreement from Oryx GTL in Qatar Asphalt production facility EPC from Saudi Aramco Infrastructure and processing facilities EPC for a gas field in the Middle East Engineering contract for operations support services from Emirates Global Aluminium (EGA), extending a 12-year fruitful partnership with work on DUBAL and EMAL aluminium smelting plants District cooling contract for the King Khalid International Airport from Saudi Riyadh Cooling Company (SRCC) Oil processing facility at West Qurna 1 Field in Iraq for ExxonMobil Wastewater treatment project for LAFFAN Refinery 2 for QatarGas Integrated facility management contract from Msheireb Properties in Doha
UAE, Iraq, Kuwait and Bahrain, this is clearly an objective that SNCLavalin is taking very seriously. All of the company’s business units are active in the region, with Oil and Gas, Infrastructure, Mining and Metals, and Power all supported by the contractor’s investment and financing arm, SNC-Lavalin Capital, which supports PPP and other clientsought financing models. Overall in the GCC, the company won more than $1.1 billion in new work (mostly in the O&G) in the first half of 2016, while over the last 10 years it has worked on more than 300 projects worth a total of $12 billion. Given the state of the regional economy, its investment and financing arm has become increasingly important to the success of its operations, as clients look to involve the private sector in the funding and execution of projects. “We see more and more will on the client’s side to work with the private sector in these critical times. Budgets are squeezed because most GCC countries are operating at a fiscal deficit and basically there is less revenue coming in. As such, they need help to fund some of the very important projects [that are planned]. “So they’re turning to the private sector and we try to work very closely with them. We’re seeing that need to help our customers, in that sense. SNCLavalin is in a great position to do that. We already have great experience with Canada, working with PPP solutions and similar financing models. So hopefully, our international expertise with PPP and our local know-how and experience can ensure that these styles of financing models are structured in a way that suits the local environment. “It’s very important to have that. Every country has different
needs, therefore it’s very important to have an overall view. But at the end of the day, you structure something that’s suitable for that particular customer or country.” However, as much as he welcomes this interest in PPP and alternative financing, Awad is quick to counsel caution, pointing out that these models are still in their infancy in the region. “There’s quite a bit of work that still needs to be done in terms of regulation and in terms of being able to choose the right project. [Clients] really need to understand the model and the importance of having the right risk allocation across the different stakeholders, so that at the end of the day, this is one collaborative effort rather than just passing the risk from one side to another,” he explains. Looking towards the future, Awad reveals that the contractor is focusing on improving its offering and support to its customers. Having established themselves firmly in the region through the opening of the regional headquarters in Abu Dhabi, the plan now is to support clients and help them meet their objectives to their full satisfaction. “We aspire to be the partner of choice for our clients in the engineering and construction sphere, contributing meaningfully to their success. We remain focused on being agile to evolving client needs, delivering excellence and quality in a costeffective and efficient manner. “At a time when others are retrenching or scaling down, we’re actually trying to focus much more on this region. The Middle East is a strategic region for us and the company is quite focused on making sure that we build on our strong base here.” “We’re targeting all sectors, from Oil and Gas, where we’re extremely strong and have a significant presence; to
In profile
Infrastructure, where we have built close to 45 district cooling plants; to Mining and Metals, where we have built huge, large plants – some of the largest in the world – for DUBAL and EMAL smelting plants. In Power, we’re working quite a bit in the transmission and distribution sphere.” Despite the reduced spending on non-essential projects, the governments of the GCC remain committed to large-scale projects and must-complete iconic programmes and initiatives, with Expo 2020, the 2022 World Cup, Abu Dhabi Economic Vision 2030 and the economic transformation and diversification plans in Saudi Arabia among the most prominent. “We need to continue to be agile and ready to listen to clients’ evolving needs so that we can deliver to their full expectations and satisfactions,” Awad says. “We can leverage our global infrastructure capabilities and experience to add value, especially in engineering and PMC services. Our expertise ranges from industrial to environment and geoscience, through to defence and logistics and power delivery, amongst others. “Furthermore, we have inregion rail and transit expertise to draw on, as well as international experience, which will help us meet the growing transportation needs in the region. In Canada, we’ve built six of the nine light rail transit (LRT) systems, covering design, financing, construction and operation and maintenance.” Looking beyond the immediate economic conditions, there are other factors at play in the GCC, with sustainability, green building and energy efficiency increasing in prominence across the region. Spurred on by an increasingly green-conscious population and leadership, governments, especially in the UAE, have been keen to push the sustainability agenda. 24 October 2016
ready to adapt Awad says that SNC-Lavalin needs to continue to be agile and be ready to listen to clients’ evolving needs.
Awad is keen to point out that SNC-Lavalin is already ready to meet these demands. Its Sustainability and Beyond initiative continuously studies and explores the changing face of the engineering industry, as it moves away from offering purely technical solutions towards ones where community concerns shape project design. “The aim is to track the evolution of engineering and document the most important lessons learned as they relate to improving social conditions and the environment,” he explains. “The initiative stems from our desire to assess how far SNC-Lavalin and the industry as a whole has come thus far in the journey towards building solutions that are better for society.” “Projects should not only meet a need, but also be maintainable, culturally appropriate and suitably affordable. SNC-Lavalin has significant experience and can add value in end-to-end project solutions (Design, Build, Own, Operate and Maintain
“Hopefully, our international expertise with PPP and our local knowhow and experience can ensure that these styles of financing models are structured in a way that suits the local environment”
projects). If you know that you’re going to operate, maintain and maybe partly own an asset, then sustainability will be something that is considered early on and taken seriously, from design throughout the whole value chain.” Awad adds that the company is already putting its money where its mouth is, with its involvement through its EPC recycling facility work for QatarGas, while its Power group is exploring opportunities in the renewable sector – including solar – to leverage the experience of the contractor’s global team. Finally, looking at the future, Awad says he and his company are focused on delivering local solutions to local challenges, while leveraging its international experience. He asserts that doing so will allow SNC-Lavalin to differentiate itself from its competitors in a market that is increasingly challenging to operate in. “We’re focused on delivering on our strong commitment to the training and development of locals where we work. We have trained around 500 Saudi Arabians in association with our sulphuric acid plant, which is being built in the north of the country. On the HSE front, which is a core value for us, we’ve held our global HSE conference in Dubai, in collaboration with our clients and stakeholders. This provided us with a great platform to share our experiences and continuously improve our performance. “I think it’s all about clients. It’s about staying close to your clients. We believe in the region and we definitely want to be part of its success going forward. We have enough initiatives in the region for us to continue to innovate, and to be able to stay close to our customers’ needs and offer local solutions and local delivery, while leveraging our international experience,” he concludes.
Site visit
Big Project ME hits the road and drives up to Jebel Jais to find out how General Mechanic Company, FAMCO and Volvo CE have all come together to deliver a vital infrastructure project to Ras Al Khaimah
26 October 2016
Site visit
October 2016 27
Site visit
D
riving enthusiasts across the UAE have long considered Jebel Hafeet Mountain Road in Al Ain the best driving road in the country. Rising up 1,219m, the 11.7km road has 60 turns and three lanes, presenting drivers with an exciting challenge that many continue to come back to. However, Jebel Hafeet’s
crown looks set to be under threat following the partial opening of the Jebel Jais Mountain Road in Ras Al Khaimah last year. Not only is the route longer than the one offered at Jebel Hafeet, but the sinuous twists and turns on offer make it a delight for motorists looking to enjoy the feel of the road. Originally launched in 2005, this 36km project was originally expected to be completed within three years. However, this optimistic estimate proved to be well off the mark, and as things stand, the entire project is scheduled to be completed in 2017.
PROJECt dEtAils Project Name: Jebel Jais Mountain Road Project Contractor: General Mechanic Contracting Equipment supplier: FAMCO OEM: Volvo CE Project Cost: $83 million total length: 36km scheduled completion: March 2017
Soaring above 1,900m, the Jebel Jais mountain is the highest peak in the UAE, with winter temperatures at the peak often dropping below 0°C. As such, there’s always been tremendous interest in the site, with intrepid explorers making the hike up in cooler times. Recognising the tourism potential of such a distinctive landmark, the Ras Al Khaimah government launched plans to build a road to the summit, which in turn would lead to the development of a hotel resort and other tourismfocused projects up there. This was easier said than done,
Tourist attraction Once the road is complete, the RAK government plans to build a hotel resort at the summit.
28 October 2016
Site visit
Elevated challenge Among the many challenges faced by GMC, the height and accessibility of the site was one of the major obstacles to overcome.
though, as the stunning landscape that makes the site such a draw to visitors from around the country also posed huge challenges to the construction team building the road to the top. Driving up the completed sections of the road, the sheer size of the rock faces that hem the road on both sides is striking. As you wind your way up the mountain, the scale of the engineering challenge facing the construction team becomes increasingly apparent. Not only are there significant space constraints, but the near vertical drop-offs and sudden changes of elevation make you wonder just how the crew got machinery and manpower up the mountain. “The road is 36km from the bottom of the mountain, but it’s 36km of some of the most challenging and difficult work you can find,” says Yaghoub Alipour Vaezi, project manager
“This project is important to the whole of the UAE, because it is unique. This is the most visited area in the country outside of the cities because it is special in terms of the landscape, the weather and the sights it offers”
of the Jebel Jais Mountain Road project. “When we compare this road with regular roads and highways, you will agree that our work was a lot tougher.” As the representative of General Mechanic Contracting (GMC), the contractor appointed to build the road, Vaezi has been associated with the project right from the very start. “We started this project in 2005, with an initial timeframe of three years to completion, but what happened was that the estimation of the consultant was way off the mark,” he chuckles, speaking to Big Project ME at his site office near the top of the mountain. “We had to do some extra work, such as building protection barriers, bracing, street light foundations and so on. Instead of the three years, it took around eight years to build the road up to the point where it stands.”
“Furthermore, due to some changes in their policy alignment or plan, the owners – the government of Ras Al Khaimah – stopped the project at that point for about two years. When they resumed, they again awarded it to us [GMC], and we are busy finishing the work in a given timeframe of around 25 months. We expect it to take no more than 22 months, and by March 2017, you’ll be able to drive all the way to the top of the peak,” he predicts confidently. With the initial phase of the project costing $65.34 million and the second phase a further $17.69 million, the total outlay on the mountain road is $83 million. The first big challenge was to create access, Vaezi says. “It is impossible to imagine how difficult it was to access the area at the beginning, and especially transport heavy equipment to the places it was required. We had October 2016 29
Site visit
these very narrow and rough tracks back then to move on with the Volvo trucks. Sometimes one or more wheels were hanging off the road in mid-air over a sheer drop. You can imagine how perilous it can be when some of your wheels are not in contact with the road surface.” “And it wasn’t as if the drop on the side was just a couple of metres. Instead, if your equipment rolled off the road, the plunge would probably be
about a hundred metres and you could kiss both operator and the machine goodbye!” Another challenge was the remoteness of the terrain. “Transporting all the necessary things for the project up to the site was difficult and costly. And if equipment broke down on-site, it was a completely different story compared to building something in a city. If you are in Dubai you can just go to the dealer and get what
you want, but not here.” In order to ensure the job could be carried out, the GMC team realised they needed to bring in specialist help. Therefore, they turned to Volvo CE, who moved in a battalion’s worth of heavy machinery equipment to the site, backed up with expertise and on-the-ground support from their local dealer, FAMCO, one of the region’s biggest machinery suppliers.
The equipment dealer provided 50 pieces of Volvo construction equipment to the project and 33 Volvo trucks. More importantly, it provided a tremendous level of back-up service to keep the machines running in trying conditions. Nigel Johnson, senior managing director, FAMCO Group, says the project is of significant importance, as it was the first project undertaken by the company’s Rental &
“If your equipment rolled off the road, the plunge would probably be about a hundred metres and you could kiss both operator and the machine goodbye!”
30 October 2016
Site visit
Used Equipment Division at a time when equipment rental was a new thing for the contractors in the market. “Our Rental & Used Equipment Division was a major option for the contractor, and provided him with solutions to meet his requirement for a large fleet of machinery and trucks for as critical and challenging a project as the Jebel Jais mountain road,” Johnson says. “FAMCO provided the
contractor with the much needed resources for this project and helped him save capital expenditure, which reflected positively on the project’s budget and delivery timelines. FAMCO not only provided the machinery and trucks, but we also provided the operators and drivers, outstanding after-sales support, the flexibility of replacing any unit with a supporting one to ensure optimum uptime and smooth flow of operations.
“All these factors, as well as FAMCO’s leading position in the market as a solution provider for construction equipment and commercial vehicles, played a key role in why the contractor selected FAMCO to support him in this challenging and iconic project.” Speaking about the equipment supplied by FAMCO in the project, Johnson adds: “For earth moving and excavation, we supplied several pieces of
Volvo’s EC700, EC480, EC460, EC380, EC360, EC290 and EC210 crawler excavators. The excavated material was hauled away by Volvo’s A35F and A35E articulated haulers, which one could have found being loaded by Volvo’s L120F and L180G wheel loaders.” “The fleet of 33 Volvo trucks we provided to the project comprised mainly the FMX370 Tippers, which were used for a variety of transport tasks,
October 2016 31
Site visit
On-site support FAMCO provided support on-site for the machinery used to carve out the road.
including carrying excavated materials away for being dumped off-site. And when the mountain was carved and a path was finally cleared, it was Volvo’s SD110 soil compactor that helped to lay the smooth road you can find up there today.” There were challenges aplenty on the job, Johnson adds. “The remote location far from supply points in the cities and the limited access points around the mountain were some of the problems. Even more challenging was the extreme and inaccessible terrain, the unpredictable and harsh weather conditions such as snow, fog and blowing winds, and the surrounding hazards such as the loose rocks and rock avalanches at the mountain.” This necessitated a great effort in site support and service. Johnson says, “FAMCO provided in-house, high-quality operator/ driver 24/7 support, plus 24/7 service and site support and trained supervisors for on-thejob instruction and production expertise. Additionally, we provided our own experienced 32 October 2016
machine operators and truck drivers who contributed towards eliminating any major accident in the project’s duration, ensured timely delivery and helped to reduce the contractor’s operational costs.” As the prime supplier of machinery to the project, Volvo CE also considers the Jebel Jais road a feather in its cap. The machinery giant’s involvement in the project was even sweeter on account of the trouble-free and safe performance of the equipment it provided as the contractor’s first choice. “It is surely an iconic project and a badge of honour for us to have been part of building the UAE’s highest road,” says Shahir El Essawy, business director, Volvo CE. “Safety has always been one of our core values. Our vision is to have zero accidents with Volvo machines, and we incorporate safety into each and every aspect of design and operation in our machines. This clearly puts our machines as best suited for such tough conditions, with extremely narrow haul
“The road is 36km from the bottom of the mountain, but it’s 36km of some of the most challenging and difficult work you can find. When we compare this road with regular roads and highways, you will agree that our work was a lot tougher”
roads and high altitudes with big drops. We are proud to say that we have gone through this project without any incidents.” “Once again, this project clearly confirms to us the importance of continuing to incorporate safety in all aspects from design to production. It was also a testament to the great partnership we have with FAMCO and how we teamed up successfully on this project. FAMCO had set up great after-sales support on-site at this remote location, and that has definitely been a key element in our joint success.” Vaezi is quick to confirm that the support and reliability provided by both companies has played a large part in the success of the project to date. He points out that the two biggest challenges he and his team faced were around safety and access, meaning that they had to have equipment and machinery they could rely on, 24 hours a day, seven days a week. “At peak time we had about 305 people working here, and
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Site visit
big machinery is sometimes not so safe, just by its very nature, and especially when it’s in a limited and constrained area – such as this mountain. We used Volvo 70t excavators that were provided to us by FAMCO, but they were safe. First of all, because they were in perfect condition. When a machine has a problem, then a lot of other problems usually follow,” he says. “Then we had to ensure that we had enough room for the big machines. For example, when a big excavator or a big dump truck moved around, we had to make sure we created the space necessary for both the effective functioning of the machine and also the optimal safety conditions. “We considered the area
and the terrain, the condition of the machinery and even the condition of the operators before the job. If an operator was fatigued, or even a little sleepy, which can happen, we had a plan in place to use a fresher person.” Another factor they had to consider was the use of the machinery in the winter months. While most contractors in the UAE have to worry about extreme heat, Vaezi and his team had to worry about temperatures that dropped to near or below 0°C. Furthermore, while rain is usually welcomed with joy by residents down in the desert, up in the mountains it presents more challenges. “We have to be especially careful about operating the
machinery during the winter months, when there are quite a few spells of rain in this region. The terrain here is formed of limestone held together by clay material. So when it rains and the clay is washed away, the rocks get loose, resulting in the great danger of rock falls. Tons of rocks can come crashing down a mountain, crushing anything in their path. “Another difficulty was the dense fog in winter. We often had to stop work because the machine operators from FAMCO were not able to see more than five metres in front of them.” Despite all these challenges and the lengthy delays that mean the road has been more than 10 years in the
making, Vaezi is adamant that it’s all been worth it. “This project is important to the whole of the UAE, because it is a unique project. This is the most visited area in the country outside of the cities, because it is special in terms of the landscape, the weather and the sights it offers. “Also, it is all very well to say an area belongs to the country – but if you cannot reach it, it is as good as not being there. With this road, we have provided access to an area of the country that was inaccessible. This road has made the UAE bigger,” he concludes, justifiably proud of what he and his team have achieved, with the help of a few friends from FAMCO and Volvo CE.
Weathering conditions The construction team had to deal with near freezing temperatures in winter, along with rain and dense fog.
34 October 2016
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In profile
36 October 2016
In profile
the steel revolution
Big Project ME speaks to Saeed Ghumran Al Remeithi, CEO of Emirates Steel, about the manufacturer’s performance in the first half of 2016, and how it plans to be a torchbearer for sustainability in the regional steel industry
October 2016 37
In profile
t
his September, the global steel community met in Paris to discuss the crisis facing the international steel industry. With Chinese mills leading the way in terms of over-production, European and other regional producers are feeling the pinch. Manufacturers in the UAE are not exempt from the pain, with the market being flooded by cheap steel from China and Turkey. As a result of this imbalance, the UAE’s Council of Ministers has encouraged the local construction industry to use products made in the country, through pricing rules for government procurement projects that favour local products. Furthermore, the Ministry of Economy has established the Industrial Coordination Council and imposed a custom duty on imports of steel products. While these efforts have helped the local steel industry to offer their products at the best quality and at competitive prices, the imbalance continues to have an impact on the economy of the region. In order to better understand the challenges facing the steel industry in these difficult times, Big Project ME speaks to Saeed Ghumran Al Remeithi, CEO of Emirates Steel, who explains how his company – part of the UAE’s largest industrial conglomerate, SENAAT – is meeting these difficult market conditions head-on. “The current market conditions are very challenging; its impact is affecting the local and global steel sector due to the global 38 October 2016
increased sales Emirates Steel recorded an increase in the sales of finished steel products, from 1.560 million tons to 1.820 million tons, in H1 2016.
overcapacity levels and flow of low-quality, cheap steel imports into the markets, and specifically into the MENA region,” he says. “At Emirates Steel, we’ve been working towards surpassing these challenging conditions by moving away from spot business transactions to a more mature business model, with responsible partnerships. The gradual growth in demand for sustainable steel products is almost guaranteed, especially with all the current and planned projects in the country.” With the UAE having 4.65 million tons of rebar capacity installed, along with 1.25 million tons of section capacity and 0.84 million tons of wire rod capacity, there certainly is enough domestic supply to meet the expected demand, Remeithi adds. Looking at Emirates Steel’s performance in the first half of the year, the CEO reveals that the manufacturer – which currently has a 52% share of the domestic market – reported
“Just-in-time deliveries and an absolute focus on customer service has enabled us to sustain a domestic market share for rebar and wire rod that exceeds 50%, while also significantly expanding our export business”
sales of 1.820 million tons of finished steel products. This compares to 1.560 million tons for the same period in H1 2015. “Emirates Steel has sustained its position in the UAE domestic market through its approach in developing long-term supply contracts to meet market needs on time, with a focus on customer service,” he explains. “We have developed a brand strategy that revolves around clearly articulating our differentiation against competitors, and we continuously push these differentiators to our customers by aligning our brand to our unique value proposition – which focuses on quality, innovation and price. “[I’d say] that we’ve become an expert in providing the highest standards of steel application and we never fail to optimise our efforts in offering the best customer service and environment sustainability. Moreover, we always aim to provide customised solutions required by different industries.” The company also operates within strategic partnerships that provide a number of benefits, including boosting its contribution to the industrial infrastructure and economic development of the UAE and the surrounding region. “Furthermore, the expansion of the global presence of Emirates Steel constitutes a central part of our strategy,” Remeithi says. “After establishing our markets in Asia and Africa in the period between 2008 and 2012, we dispatched our first shipment of structural steel to the American and Mexican ports of Houston and Altamira in May 2013 – a development that represented a notable expansion for us, away from our initial markets.” “Our product quality has enabled us to enter many new markets, including Europe, the Far East, North and South America and other Middle East countries.
In profile
We aim to be present in all key industrialised markets across the globe with our creative and innovative steel solutions.” Currently, Emirates Steel products are available in 34 countries, including India, Indonesia, Malaysia, the Netherlands, Germany, Turkey, the US, Canada, Mexico, South Korea and the Arab countries. However, Remeithi is quick to assert that this international expansion does not mean any lessening of priorities on the domestic front. “On the other hand, we have maintained our position in the UAE domestic market through a policy of actively developing longterm supply contracts for finished steel products to meet customer needs. Just-in-time deliveries and an absolute focus on customer service has enabled us to sustain a domestic market share for rebar
and wire rod that exceeds 50%, while also significantly expanding our export business, particularly for value-added products.” The company’s product portfolio includes a range of ‘medium, heavy and jumbo’ sections, used for construction purposes in sectors such as oil & gas offshore and onshore platforms, electrical transmissions and the petrochemical industries. Emirates Steel’s range of structural sections varies from approximately 200mm to 1,016mm in depth. Its Heavy Sections Mill produces parallel-flange beams, columns and bearing piles with up to 1,016mm web depth and 427-flange width, and parallelflange channels of up to 430mm depth. This is in addition to the new customised sheet piling designs which are manufactured in grades that meet the EN
S355 GP, S390 GP and S430 GP standards, Remeithi points out. “We aim to contribute to the industrialisation and diversification of the UAE economy, in line with Abu Dhabi’s Vision 2030,” the CEO asserts. “At Emirates Steel, we’re known for having a vision of the future and a clear roadmap as to how we’re going to achieve our objectives. Our core values are Honesty, Integrity, Creativity, Innovation, Quality and the Pursuit of continuous improvement across all aspects of our business. Our vision is to be a world-class steel manufacturer that provides the highest quality products, services and solutions to our customers, while also maximising returns to our shareholders.” “We deliver value to our stakeholders by following a clear strategy – we target the construction, manufacturing
and industrial sectors with their requirements of highquality steel products, while also maintaining safe and environmentally friendly work practices across our operations. We also create employment opportunities and inspire our workforce to excel,” he says. Investing in staff development is something of a pet project for Remeithi, who is keen to point out that Emirates Steel’s Human Capital Investment programme is something to be justifiably proud of. “To date, we have achieved 23.1% of Emiratisation, with our 550 UAE nationals working for Emirates Steel,” he says. “Of this, 384 are engineers and technicians, 127 work in admin jobs, while we have 39 students which we’ve given scholarships to.” “We are aiming to raise
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Stand B137, Hall 3
www.balmoraltanks.com October 2016 39
In profile
this to 30% in the future, and as far as our investment in human capital is concerned, we’re determined to fulfil our ambitions and strategic targets in Emiratisation, in line with Abu Dhabi Vision 2030,” he reinforces. “As such, we have created partnerships with different education organisations, such as Higher Colleges of Technology, Al Hosn University, UAE University, American Sharjah University, Zayed University, Abu Dhabi University, Al Reef Institute and Vocational Educational Development Centre (VEDC), to build a leading, professional, Emirati workforce that is specialised in the steel industry. “Such partnerships would also help us in the acquisition of UAE national talent and in career development within the Emirates Steel scholarship programme, as well as in developing skills and expanding horizons to prepare the future leaders of our industry,” Remeithi outlines. Also close to the CEO’s heart is
“To date, we have achieved 23.1% of Emiratisation. We are aiming to raise this to 30% in the future, and as far as our investment in human capital is concerned, we’re determined to fulfil our ambitions and strategic targets”
sustainability and environmental awareness. With the global steel industry regarded as a major driver of climate change, the CEO is adamant that Emirates Steel will become a regional leader in proving that steel can be produced in a safe and sustainable way. Given that the UAE has already begun work in developing a blueprint for how to incubate and establish a low-carbon, new-energy industry and that the government has taken steps to adopt an approach to use clean technologies, renewable energy and low-carbon solutions, Remethi believes that Emirates Steel must take the lead and show the steel manufacturing industry what can be done. “In alignment with this vision, Emirates Steel is striving to fulfil its objectives in terms of producing steel in a safe and sustainable way. Included in these priorities is the company’s on-going efforts to utilise the CO2 generated during the iron reduction process at its DRP plants, and its efforts to promote environment
taking the lead Emirates Steel must take the lead and show the steel manufacturing industry that it can be sustainable, says Remeithi.
40 October 2016
and resource conservation. “As a matter of fact, we’re an integral part of Masdar and ADNOC’s first CO2 capture, usage and storage initiative in the region. CCUS is the first joint venture in the Middle East that develops commercial-scale carbon capture, usage and storage projects. “It is part of the government’s continued efforts to create a low-carbon steel industry and enhance CO2 management in the UAE. The CCUS project consists of three steps. It begins with the captured CO2 from the Emirates Steel plants; secondly, we compress the CO2 and transport it along the 50km pipeline by Masdar to the oilfields operated by ADNOC; finally, the third and final step is when ADNOC injects the CO2 into their oilfields to enhance oil recovery, while storing the injected CO2 underground.” This ambitious project will not only enhance oil and gas production in the oilfields, it will also result in the preservation of the UAE’s natural gas for domestic electricity generation and other uses, he explains. It does this by liberating natural methane gas, traditionally used to pressurise oil wells and in oil recovery, to be used for other traditional power generation and water desalination needs. “Moreover, this project will establish commercial principles for a CO2 industry and demonstrate the technical viability of CO2 operations,” says Remeithi. “It presents a practical approach for energy-consuming industries to lower their carbon footprint. Being part of CCUS, Emirates Steel sets an example in supporting Abu Dhabi’s sustainability objectives, and in assisting the UAE to implement its strategy to reduce carbon emissions through operating environmental friendly heavy industries in the country,” he concludes proudly.
For more info Fila Middle East - Office 2705, Fortune Tower, JLT, Dubai Ph : +971 44 542 642, filamiddleeast@filasolutions.com
Comment
Kevin Storey
Avoiding Floor FAilure
Kevin Storey, managing director of Flowcrete Middle East, provides some advice on industrial flooring specification The failure of a floor can be a major problem for manufacturers. Statistics show that many industrial floor coverings fail within their first two years of service, creating enormous upheaval and expense to the client through production downtime, stock spoilage, safety hazards, contamination risks or at times a combination of all of the above. The surest way to avoid floor failure is to take the necessary steps during the specification stage to prevent the problem occurring in the first place, by selecting fit-for-purpose, durable flooring systems that 42 October 2016
have been designed to meet the operational demands of the site as well as comply with all necessary health, safety, hygiene and environmental regulations. Floors in industrial facilities have to be able to withstand abuse from a long list of factors. This includes chemical attack from substances such as fuels, sanitiser, acids and lubricants, and in certain industries by-products from foodstuffs including sugars, hot oils, bloods and grease. On top of this, floors are subject to mechanical abuse from equipment being moved, tools being dropped, pallets dragged across the surface and
Heavy demands The demands placed on industrial floor spaces have led many designers to install high-performance resin flooring solutions.
rubber- and steel-wheeled forklift traffic. They can be exposed to violent temperature swings from cleaning, spillage, hot oils, cold water and even steam. These demands have led to many designers of industrial spaces installing high-performance resin flooring solutions, thanks to the ability of resin systems to create exceptionally robust surfaces that can be tailored to improve hygiene, safety and aesthetics on-site. Synthetic resin flooring is available in a wide range of thicknesses, from thin floor sealers to heavy-duty industrial
protection. The resulting flooring can provide a seamless surface with greatly enhanced performance compared to the concrete base on which it is typically applied. The best resin flooring systems today are primarily based on three different types of formulation: epoxy, polyurethane and methyl methacrylate (MMA). In general terms, all resin flooring is fast curing or hardening as well as tough and abrasion resistant. All tend to produce hardwearing finishes that are chemical resistant, impermeable to liquids, hygienic and easy to clean, as well as providing a strong permanent
Comment
“The surest way to avoid floor failure is to take the necessary steps during the specification stage to prevent the problem occurring in the first place”
bond to the concrete slab. Resin flooring ranges from thin floor seals to trowel finished and aggregate filled heavy-duty resin coatings. As a general rule, the thicker the system the longer its service life and the better it withstands damage from heavy impacts, chemicals and extreme temperatures. When choosing a floor, it is important to have a detailed knowledge of the site’s operational activity to avoid specifying a thin floor finish that will crack or chip away when faced with the reality of the building’s daily use. For example, if the floor coating is too thin,
then a heavy impact could expose the substrate and this chip could become an area where oils, water, chemicals, food by-products and greases can access the substrate and undermine the coating, causing mass delamination and serious hygiene problems. A 6-9mm thick floor finish is advisable within heavy manufacturing areas, as not only does it have a better chance of dissipating the impact, but should a chip occur then it will not progress down to the substrate. The floor’s impact resistance requirement should be tailored to your environment: the more chance and severity of impact, the thicker your floor coating should be, to protect the critical bond layer where the coating meets the concrete. Anticipated traffic loadings need to be particularly accounted for, as just a hand pallet truck when fully loaded could weigh in excess of one ton. When repeatedly moved, this puts a lot of pressure through the small wheels and into the floor, especially over areas where it is pulled in a tight turning circle. The compressive strength of the floor system can be used to determine the suitability of the floor to the task at hand. Going back to the hand pallet truck scenario, a compressive strength of at least 40-50N/ mm2 would be required. Thermal shock is another common occurrence in industrial sites that needs to be considered during the flooring specification process – blasts of freezing air emanating from the open door of a cold store unit at -25°C, steam cleaning at 120°C to remove stubborn contaminants, spillages of boiling fats or oils and hot ovens, to name just a few. This immediate temperature change can lead to cracks, bubbling, peeling or
delamination. In these situations, a robust polyurethane screed is much better than epoxy or methyl methacrylate floors. Thermal cycling, when the floor’s temperature is gradually raised and lowered, can also affect the finish. Polyurethane systems have a thermal coefficient of expansion similar to that of concrete, meaning that when the floor is exposed to thermal cycling, the floor finish expands and contracts in line with the concrete substrate. Flooring materials that fail to move with the substrate crack along the surface, creating unsightly and unhygienic gaps where contaminants can accumulate. Considering the floor finish in terms of risk management is critical, especially in wet service environments, and it is important to ensure that the flooring system is tested under these conditions to determine if it will provide the correct level of safety. In wet service environments, the floor needs to be laid with an efficient drainage system, in order to prevent water pooling and lower the risk of slips. Resin flooring is available in a range of textures and can be graded with aggregates in order to increase traction underfoot. It is important to note that coarsely textured surfaces, such as positively graded resin systems, are more difficult to keep clean, therefore a compromise may need to be made when heavy slip resistance and ease of cleaning are both of critical importance. When going through the flooring specification process and assessing both the available materials and the future demands of the site, it is important to discuss all of these points with both the supplier and applicator, to ensure that the chosen system provides all the required flooring properties. October 2016 43
Cladding and facades
enforce regulations Fire safety experts have called on local authorities to be stricter and more vigilant when it comes to approving materials for projects.
Spreading the Word
Experts tell Big Project ME that greater communication and enforcement is needed from authorities, to ensure the new fire codes for cladding are followed
44 October 2016
Speakers and attendees at this year’s Middle East Facades Summit all had a similar message when it came to the recent moves to improve fire safety in high-rise buildings in the region – namely that tougher building regulations must be enforced.
With a renewed focus on fire safety in Dubai following four major high-rise fires in four years, experts have called on the construction and real estate development industries to follow safety rules to the letter. The proper installation of non-flammable and fire
retardant materials, and the regular maintenance of buildings, are crucial to preventing fires from spreading, speakers said at the event, which was held alongside the Windows, Doors and Facades Event 2016. “The designs are put together well enough to prevent a fire, or to prevent the fire from getting into the façade,” explained David O’Riley, managing partner of Britannia International, a fire engineering company, during his presentation at the summit. “But the major problem in this part of the world is that those
Cladding and facades
elements that are designed specifically to mitigate the fire are invariably left out or not actually installed properly.” “Just approving the system does not actually suffice; you have to have all the operatives trained by factory trainers, so that they know how to install it, why they’re installing it and what is important in that installation process.” Following the release of the new fire code by the UAE Civil Defence, the summit comes at an important time for the country’s purveyors of fire safety. With
the authorities determined to crack down on materials that don’t meet standards, manufacturers, contractors and consultants have all had to reassess how they go about installing and specifying projects. In August, it was revealed that more than 270 building projects across Dubai had handover delays due to authorities not being satisfied with the ratings of cladding systems. With the new building codes currently in development and likely to be introduced next year, the Civil Defence has been far more stringent about making sure the existing codes are met. “With the UAE Civil Defence, if you see the new code, there are four requirements and three standards that need to be met,” says Zohaib Rahman, division head of Alucopanel Middle East. “These are ASTM E84, which is to test your core material; EN 13501, which is the European standard; and then there’s ASTM 1929, where the minimum requirement to pass is an ignition temperature of 343°C.” Speaking to Big Project ME at the event, Rahman and his associate Intisar Andra, the technical business development manager for Alucopanel Middle East, both assert that the biggest challenge facing the industry at the moment is a lack of clarity surrounding the new codes. While she is quick to acknowledge that the Civil Defence has been proactive in the introduction of the new fire code, Andra points out that there could be greater engagement with the industry. “The biggest challenge is that the ideas are not clear. We’re really trying and depending on ourselves for the research and to find out what other people are doing – all over the world, not just
“Just approving the system does not actually suffice; you have to have all the operatives trained by factory trainers, so that they know how to install it, why they’re installing it and what is important in that installation process” in the UAE. In the UAE we’re the first to do this, so we can’t depend on the experience of people here. We’ve even checked with consultants and subcontractors, and nobody really has [anything to share]. So we’ve taken on the challenge to do the study and utilise our own experience.
“I’m an architect who’s worked for nearly 20 years in the subcontractor field, so I know what the problems are and how the industry is. When you get something approved or passed, but it’s not meeting your budget, what will you do? You don’t follow it,” she says, referring to the budgetconscious construction industry. It’s this attitude that necessitates greater enforcement by the authorities, backing up the views of the experts at the summit. Rahman says he believes use of fire-rated and approved materials will become mandatory, given how serious the authorities are about it. However, he does point out that greater communication between all parties would go a long way towards reducing the reticence and confusion in the industry. “You have to push the Civil Defence to publish their codes and regulations. After a fire incident, everyone reads the papers and the papers say that the fire code is still to come in, that it’s yet to be released. And to date, people are still waiting for the fire code to be released. “As a manufacturer, because we’re hungry to be in compliance, we’ve visited the Civil Defence and they’ve given us the fire codes, but people are still expecting the Civil Defence to release it officially, either on their website or in the press. “[So I think] the Civil Defence has to release it publically. Until now, it hasn’t been released on their website. But they’ll tell us, during meetings, that this is the official code, you just do what’s written here. You have to approach them to take the information, but otherwise, you won’t find it published anywhere, so that really makes things more difficult [than they need to be].”
October 2016 45
...coming soon
In association with:
Sustainability www.kone.ae
the green revolution
Big Project ME speaks to the experts about how Middle Eastern cities can improve their sustainability ranking on a global scale
Keeping track Dubai and Abu Dhabi need to adopt a post-construction monitoring and data analysis system, says Awadh.
48 October 2016
For years, the global construction industry across the world has been known to put profit above planet. Forums like COP21 have drawn attention to the fact that carbon emissions have sky rocketed over the years, which has resulted in governments working around the clock to put rules in place to regulate the construction process and materials used to create our built environment.
The results of these efforts can be seen in a handful of cities today. According to the Arcadis Sustainable Cities Index 2015, Frankfurt, London, Copenhagen,
Amsterdam and Rotterdam occupy the top five positions for being the most sustainable. Not too far behind are a few Asian cities like Seoul, Hong Kong and Singapore, followed by a few others from America and Australia, but when it comes to the Middle East, places like Dubai, Abu Dhabi and Doha still rank much lower – 33rd, 34th and 41st. With initiatives like the UAE Vision 2021 National Agenda, which focuses on improving air quality, preserving water resources and increasing clean energy, why is the region still low on the
In association with:
Sustainability www.kone.ae
global sustainable cities scale? For starters, sustainability practices are very young in the Middle East, notes Omair Awadh, senior sustainability consultant at Dubai-based AESG. Awareness and consideration have improved in the last decade, but this varies from city to city. “Few cities fiercely encourage sustainable practices such as in Dubai, Abu Dhabi and Doha, where it is mostly government driven. Other cities are struggling due to the lack of support, like in Amman and Beirut. I think government driven practices seem to be the
most effective when it comes to the environmental and economic aspects of sustainability, while the social aspect has not been considered as such,” he says. Wayne Morgan, senior engineer at Cundall, agrees that sustainable construction practices are slowly getting a foothold in the Middle East. In fact, he says that over the last few years experts have started to notice an increase in the number of projects seeking LEED or ESTIDAMA certification. However, he feels more can be done to promote sustainable practices, not only when constructing new buildings but during activities like refurbishment and office fit-out as well. Taking a different stand point that it is a wide misconception that the Middle East has never been sustainable is Omnia Halawani, managing partner at Griffin Consultants. She points out that sustainable practices have been around for ages, as old architectural approaches in the UAE incorporated a lot of passive sustainability measures like shading, wind towers and low window to wall ratios. “Architects like Hassan Fathy, the Egyptian architect, saw the value of sustainable construction long before it became a craze in the West. Climatic conditions and public health considerations shaped many of his architectural decisions. Wind catchers, courtyards and dense brick walls were some of the strategies incorporated in his architecture. But when exponential growth occurred in the GCC, sustainability took a back seat to construction speed. It has now regained its position as one of the pillars for sustainable economies.” Considering past efforts and the fact that current sustainable drives are still in their infancy, what do Middle
“When exponential growth occurred in the GCC, sustainability took a back seat to construction speed. It has now regained its position as one of the pillars for sustainable economies” East cities need to do to match their European counterparts? Morgan believes the main problem is that things are a little too fast-paced in the region. For instance, when a project comes online, the developer wants it to be completed as soon as possible, which often prevents thorough planning and consideration of sustainable options. “If you want a sustainable building, you need to have the right materials and equipment, and
that might not fit with the client’s programme. Everything is very fasttracked here, whereas in European cities like Frankfurt or London, they take more time to design, plan, construct and incorporate suitable green practices. “Things like building materials need to be considered. Ideally you want to source your materials locally for availability and speed of delivery to fit in with the programme. Minimising transportation costs is a suitable outcome, but sometimes you many need to consider importing products from Europe, which might pose a problem to the timescale of a project.” Halawani agrees with this point on the pace of development. She even points out that it is a well-established fact that rapidly developing countries face serious environmental challenges. However, she says that there are certain considerations to be made as well, like the fact that temperatures in the region make it impossible to eliminate the use of artificial cooling. “The exponential growth in the UAE, and other Middle Eastern cities, has led to an increase of the country’s energy usage and the energy use per capita. It’s worthwhile to note that every room in the UAE is air-conditioned due to the extreme climate, and therefore to have an apple to apple comparison when developing rankings such as the Sustainable Cities Index is not feasible. “Another thing is that in cold climates, inefficiency in buildings like appliances and lighting benefit the heating system, since these generate more heat. But in a city like Dubai, inefficient lighting and plug loads would add to the cooling load and drive the consumption of the air-conditioning equipment even higher.” Awadh says that while
October 2016 49
Sustainability
developing cities like Dubai and Abu Dhabi are working towards being more sustainable, they need to adopt a postconstruction monitoring and data analysis system. For example, he says Frankfurt has not only set its own energy and environmental benchmark but has also established future targets and a plan for achieving them. To do this, data sharing and management is essential. There are other things that can be done as well, such as making older buildings in the city more sustainable through refurbishment. Morgan highlights a recent project that involved the replacement of a district cooling plant. As a replacement meant shutting it down temporarily, the owner had to be convinced that the inconvenience was justified. “While it’s easy to create a sustainable city from scratch, I think there is probably more benefit from improving what’s inside buildings that are already built. If you look at the size of Dubai, there are thousands of buildings that were built 10-15 years ago that are probably now highly inefficient. Refitting those to the current standards could give you more benefit than constructing a new development. But it’s tricky rationalising the closure of a working building to a developer, despite it being inefficient.” Improving artificial cooling systems is another factor to consider. Halawani says that according to a study conducted by Griffin and AESG, 67% of Dubai’s power is used by cooling systems at peak times, which emphasises the importance of exerting efforts to make this sector more efficient. “The cooling systems in the majority of buildings here are oversized, and this is an easy and straightforward area for optimisation. Considering that
50 October 2016
“Few cities fiercely encourage sustainable practices such as in Dubai, Abu Dhabi and Doha, where it is mostly government driven. I think government driven practices seem to be the most effective when it comes to the environmental and economic aspects of sustainability”
artificial cooling is needed in every building, the selection of more efficient cooling systems would play a vital role in achieving sustainability.” While it is important to construct a green city, balancing sustainability and economic growth is equally necessary. But Halawani believes that economic growth targets do not need to contradict sustainability. She points out that this belief is shared by 190 nations, including the UAE, who agreed in Rio+20 Summit in 2012 that a green economy is one of the vital tools needed to not only achieve sustainable development but to eradicate poverty. “In 2012, HH Sheikh Mohammed bin Rashid Al Maktoum announced the launch of a long-term national initiative to build a green economy in the UAE. The initiatives that were started under this strategy come under sectors like oil & gas, water and electricity, industry, construction, transport and logistics, waste management, land use and agriculture, financial services, and tourism and hospitality. “Some of those initiatives include renewable energy projects, efficiency standards and green building codes, public transportation, waste-to-energy projects, organic farming, ESCOs and green hotels. It is anticipated that more national and local policies will be enforced in a coordinated manner to facilitate this green agenda.” Naturally, all of this comes with a set of challenges, the biggest being spreading awareness about the importance of sustainable practices and convincing clients that it isn’t an expensive option if planned and executed correctly. Morgan says one way of overcoming this is by consultants spending more
time advising the client about the benefits and the return on investment in the long run. “What tends to happen is that a client will come and say that he wants a green building or a LEEDcertified development, and most consultants just say, ‘Okay, here’s the fee,’ and that’s it. You’ve already lost them with that one sentence. “They need to know that being sustainable may require more investment at the start, but there are longer-term benefits for themselves as a company and the people within the building. They need to know that in ten years’ time they will regain that investment and will have helped the environment as well.” In Awadh’s opinion, the challenge is not just awareness but also documenting and quantifying the impact of sustainability practices at environmental, social and economic levels. With initiatives like the UAE’s Vision 2021 and ‘A Green Economy for Sustainable Development’ in place, we’re heading in the right direction, says Halawani. Concluding, Morgan points out that while we are on the right track, we are a way off from being completely sustainable. “Take Masdar City as an example. It is expected to be finished in 2030, and while the initiative is excellent, that’s a long time to build a relatively small city. I think the urge to be sustainable has to come from various bodies, especially clients and end users, and not just the government. “If we truly want to build a sustainable city, the government should bring in more stringent regulations and make it mandatory. Attaining an entirely green city would be a tough task, but it’s not impossible. If everybody recognises the importance of sustainability, it would happen a lot quicker.”
Show preview
ShamS Dubai createS new energy buzz at wetex 2016
Renewable energy tops the list of priorities at WETEX 2016, with launch of the first-ever Dubai Solar Show generating interest from attendees
The Shams Dubai initiative will have a prominent place at the Water, Energy, Technology and Environment Exhibition (WETEX 2016), organised by DEWA 4-6 October at the Dubai International Convention and Exhibition Centre. It also coincides with the inaugural edition of the Dubai Solar Show, a key platform for the solar energy sector. Both WETEX and the Dubai Solar Show highlight the latest innovations and provide unique platforms to build partnerships among government and private sectors for sustainable energy solutions. The use of PV panels to produce energy is growing around the world. Following the success of large utility-scale projects, solar PV has permeated into models for
individual homes and rooftops. It is now common for residential and commercial buildings to generate electricity from solar panels and transfer any surplus back to the electricity grid. PV energy systems use photovoltaic cells to convert sunlight into electrical energy. These cells are made of semiconductors, used to assemble PV modules (components used in PV systems). A range of factors influence the performance and benefits of a solar PV system, including the direction of the surface of the building, the level of shade and surface, and the type and size of equipment used. “We recognise the importance of renewable and sustainable energy in preserving the
environment, and to achieve sustainability of our natural resources, thus ensuring a better future for generations to come. Therefore, we launched the Shams Dubai initiative as part of our efforts to achieve the Smart Dubai initiative which aims to make Dubai the happiest and smartest city in the world,” explains HE Saeed Mohamed Al Tayer, MD & CEO of DEWA. The Shams Dubai initiative is an integral part of the Dubai Clean Energy Strategy 2050 to transform Dubai into a global hub for clean energy and green economy, and to provide 75% of Dubai’s energy through clean sources by 2050. “Solar energy is a renewable form of energy that is clean, safe, unlimited and does not cause
carbon emissions, and is therefore sustainable for our environment. It also reduces our dependence on conventional energy such as gas, oil and coal,” Al Tayer emphasises. DEWA has outlined easy steps to install photovoltaic systems in buildings to generate solar power as part of the Shams Dubai initiative. The process starts with the customer contacting one of the DEWA accredited consultants or contractors to do a feasibility study to get the best PV solution. After the consultant or contractor gets the necessary approval from DEWA, they undertake on-site work, submit a notification to DEWA to do a technical inspection, and install the meter to complete the connection process. First time at the show The Dubai Solar Show will make its debut at DEWA’s WETEX 2016.
52 October 2016
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Show preview high attendance expected NATRANS Expo is expected to attract hundreds of visitors over the two days.
The laTesT TransporTaTion Technologies To be showcased aT naTrans expo Highlighting the future of the transport and Smart Cities sectors
Dubai, UAE, Sep 25, 2016 – NATRANS Expo will raise the curtain on its second edition at the Abu Dhabi National Exhibition Centre on October 25 and 26, 2016. The event is held under the patronage of His Excellency Dr Abdullah Belhaif Al Nuaimi, Minister of Infrastructure Development and Chairman of the Federal Transport Authority – Land and Maritime.
The two-day event will feature the most advanced technologies across a wide range of applications in today’s smart cities, from road and traffic, smart parking solutions, automatic incident and real-time traffic telemetry, signals, nationwide interoperable ETC systems, 54 October 2016
metro and rail infrastructure projects, maritime and ports, and security solutions to green city buses and autonomous vehicles. Two technical conferences will be running parallel to the event; one conference will be discussing sustainable transportation and one will be dedicated to IoT in transportation. The conferences aim to be the industry’s meeting point for all top transport professionals and will deliver a diverse line-up of industry experts, academics and market leaders with 75+ speakers from 30 countries and over 300 delegates. Both conferences will discuss the very latest in the future of transportation systems. Key topics include: Smart Infrastructure,
“The conferences aim to be the industry’s meeting point for all top transport professionals with 75+ speakers from 30 countries and over 300 delegates”
Future of Parking, Smart Ports and Planes, Hyperloop, Walkability, IoT Implementation and the 2030 Vision. NATRANS Expo is expected to attract hundreds of visitors over the two days. With the support of the Federal Transport Authority Land and Maritime, the event is sponsored by Honeywell and Lean Park, with Hyperloop Transportation Technologies as the Strategic Partner. Several big players in the market will also be participating at the event, such as Omnix, Fybr, Aeromobil, Mitsubishi, XRAIL, Emirates Driving Company and Tactical Partners AECOM and ATKINS. More information, see www.natrans-expo.com
4 CONSULTANTS & ARCHITECTS CUP 2016 TH
19 OCTOBER 2016
EMIR ATES GOLF CLUB bigprojectme.com/golfdays/2016
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Tenders
Top tenders Jebel Ali GArdens development proJect budget $2,000,000,000 project number MPP3026-U territory Dubai, United Arab Emirates client Nakheel PJSC (Dubai) Address Jebel Ali phone (+971-4) 390 3333 Fax (+971-4) 390 3314 email info@nakheel.ae Website www.nakheel.ae description Construction of 42 towers designed to house 40,000 people in nearly 10,000 apartments, including facilities such as green parks, swimming pools, basketball courts and football pitches period 2020 status New Tender tender categories Leisure & Entertainment, Prestige Buildings tender products Gardens/Parks Development & Maintenance, High-rise Towers, Residential Buildings, Sports Complexes
description Construction of ten buildings comprising athletic, recreation and aquatic facilities period 2019 status Current Project tender categories Leisure & Entertainment, Construction & Contracting tender products Sports Complexes
GeepAs residentiAl toWer proJect budget $450,000,000 project number WPR1107-U territory Dubai, United Arab Emirates client Geepas World FZCO (Dubai) Address Techno Park, Jebel Ali phone (+971-4) 816 3000 / 816 3001 Fax (+971-4) 880 7213 email info@geepas.ae Website www.geepas.com description Construction of a
residential tower comprising 19 floors offering 640 apartments period 2018 status Current Project tender categories Prestige Buildings tender products Residential Buildings
dhoFAr Wind poWer proJect budget $125,000,000 project number WPR1099-O territory Mina Al-Fahal PC 116, Oman client Rural Areas Electricity Company (Oman) Address Subsidiary of Electricity Holding Company SAOC phone (+968) 2469 5162 / 2447 3251 Fax (+968) 2469 5311 Website www.ehcoman.com description Construction of a wind-based power plant with capacity to generate 50 megawatts (MW) of electricity period 2017 status New Tender tender categories Power & Alternative Energy
tender products Power Generation Plants, Wind Energy
Al qAnA mixed-use proJect budget $235,000,000 project number WPR911-U territory Abu Dhabi, United Arab Emirates client Department of Municipal Affairs – Abu Dhabi Municipality Address Salam Street phone (+971-2) 678 8888 Fax (+971-2) 677 4919 Website www.adm.gov.ae description Construction of a mixed-use leisure project which will provide recreation facilities, high-end shopping and fine dining period 2018 status Current Project tender categories Construction & Contracting, Leisure & Entertainment, Marine Eng Works & Seaports tender products Commercial Buildings, Marina Development, Mixed-use Developments, Retail Developments
sports, Athletics & AquAtic FAcilities proJect – sAbAh Al-sAlem university city budget $545,000,000 project number WPR1083-K territory Safat, Kuwait client Kuwait University Address Building 119, 1st Floor, Khalidiyah phone (+965) 2498 4271 Fax (+965) 2484 8648 email info@kuniv.edu Website www.kuniv.edu
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
56 October 2016
Tenders
Middle East tenders UAE oil storAGe expAnsion proJect budget $30,000,000 project number WPR1242-U territory Dubai, United Arab Emirates client Star Energy Oil-tanking (Dubai) Address Jebel Ali phone (+971-4) 881 6733 Fax (+971-4) 881 6548 email dubai@oiltanking.com Website www.segl.ae description Carrying out expansion of oil storage capacity period 2018 status New Tender tender categories Gas Processing & Distribution, Oilfields & Refineries tender products Storage
inFrAstructure & pumpinG stAtion proJect – AkoyA oxyGen budget $25,000,000 project number WPR1194-U territory Dubai, United Arab Emirates client Damac Properties (Dubai) Address 4th Floor, Al Moosa Tower II, Sheikh Zayed Road phone (+971-4) 332 2005 / 373 1000 / 515 6111 Fax (+971-4) 332 1874 email info@damacgroup.com Website www.damacgroup.com description Execution of infrastructure and construction of a pumping station period 2017 status Current Project
tender categories Power & Alternative Energy, Roads, Bridges & Infrastructure, Sewerage & Drainage, Water Works tender products Infrastructure, Sewerage/Drainage Pipelines & Pumping Stations, Water Transmission & Distribution Networks
briquette FActory proJect – Al hAyl budget $75,000,000 project number WPR1230-U territory Fujairah, Northern Emirates client Fujairah Rockwool Factory (Fujairah) Address Ahfara, Al Hayl Industrial Area phone (+971-9) 222 2297 Fax (+971-9) 222 2573
email sales@frf.ae Website www.fujbi.ae description Construction of a briquette factory period 2018 status Current Project tender categories Industrial & Special Projects tender products Factories
emirAtes FliGht cAterinG FAcility proJect – Al mAktoum internAtionAl Airport budget $10,000,000 project number WPR1200-U territory Dubai, United Arab Emirates client Emirates Flight Catering Company (Dubai) phone (+971-4) 282 3171 / 208 6779/6763/6762
Fax (+971-4) 282 6340 email kbounader@ekfc.ae Website www.ekfc.com description Construction of catering facility at an airport period 2018 status New Tender tender categories Construction & Contracting, Hotels tender products Commercial Buildings
Saudi Arabia FAirmont hotel & resort proJect – JeddAh north corniche budget $400,000,000 project number WPR1159-SA territory Jeddah 2152, Saudi Arabia client Sisban Holding (Saudi Arabia)
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
58 October 2016
Tenders
phone (+966-12) 692 3444 email info@sisban.com Website www.sisban.com description Construction of a new hotel comprising 65 floors, offering 350 rooms period 2018 status New Tender tender categories Hotels, Prestige Buildings tender products Hotel Construction
yAnbu – north JeddAh Fuel pipelines proJect project number MPP3074-SA territory Dhahran 31311, Saudi Arabia client Saudi Arabian Oil Company (Saudi Aramco) phone (+966-13) 872 0115 / 874 2222 Fax (+966-13) 873 8190 / 874 1655 email supplierHelpDesk@ aramco.com Website www.saudiaramco.com description Engineering, Procurement and Construction (EPC) contract to build two fuel pipelines for transporting oil products, including gasoline, diesel and jet fuel status New Tender tender categories Gas Processing & Distribution, Oilfields & Refineries
tender products Crude Transportation, Storage & Distribution, Gas Distribution
Qatar Fish processinG plAnt proJect budget $1,500,000 project number WPR1233-Q territory Doha, Qatar client Ministry of Energy & Industry (Qatar) phone (+974) 4484 6444 Fax (+974) 4483 2024 email dae@mei.gov.qa Website www.mei.gov.qa description Construction of a fish processing plant period 2017 status Current Project tender categories Industrial & Special Projects tender products Food Processing Plants
burJeel hospitAl proJect – Al khor budget $5,000,000 project number WPR939-Q territory Qatar client VPS Healthcare
Group (Abu Dhabi) phone (+971-2) 222 2366 / 508 5555 email info@vpshealth.com Website www.vpshealth.com description Construction of a hospital comprising 80 beds period 2017 status Current Project tender categories Construction & Contracting, Medical & Healthcare tender products Hospital Construction
Bahrain mAll oF dilmuniA proJect budget $110,000,000 project number MPP3060-B territory Manama, Bahrain client Ithmaar Development Company – IDC (Bahrain) phone (+973) 1758 4601 Fax (+973) 1758 4017 description Construction of a new shopping mall period 2018 status New Tender tender categories Leisure &
Entertainment, Construction & Contracting tender products Retail Developments
Oman intercontinentAl hotel proJect – muscAt hills & GolF & country club budget $90,000,000 project number MHHIL/1618/1/2016-O territory Muscat, Oman client Muscat Hills Golf & Country Club (Oman) Address Seeb, PC 111 phone (+968) 2451 4080 Fax (+968) 2451 4005 Website www.muscathillsgolf.com description Construction of a hotel comprising 250 rooms, including four food and beverage outlets, a fitness centre, spa and swimming pool period 2018 status Current Project tender categories Construction & Contracting, Hotels tender products Hotel Construction
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
October 2016 59
Last word
The Water Challenge Ahead of WETEX 2016, Henning Sandager, area managing director of Grundfos Middle East and Turkey, outlines how the new IP66 Solar Inverter (RSI) will help the UAE’s agriculture sector reduce water usage by as much as 30% One of the greatest challenges and concerns in the 21st century is to ensure sustainable development; the needs of current and future generations cannot be met unless the world changes the way it uses energy. As technology gets smarter and more innovative, it can seem like the answer to environmental challenges will be found through increasingly complicated systems.
However, huge gains, both for the environment and in operating costs, can result from simply replacing one simple, integral component found in nearly every type of building and industrial unit: the pump. The total amount of electricity consumed by pumps adds up to far more than most people realise. Pumps account for a massive 10% of the world’s electricity consumption, and way too much is pure waste. If everyone switched to high-efficiency pumps, we could save
60 October 2016
4% of the world’s total electricity consumption – equivalent to the residential electricity consumption of one billion people. With water management now one of the biggest challenges facing the UAE, we have chosen the Middle East’s first Solar Show, part of the WETEX 2016 exhibition, to launch a new solar inverter designed to cut water usage in irrigation by up to 30%. Developed by technical experts at Grundfos, the new off-grid IP66 Solar Inverter (RSI) has been designed to convert traditionally powered submersible pump (SP) irrigation systems into modern solar powered installations, not only significantly reducing effective water demand, but also cutting both energy usage and cost in a sector where profitability is key. Compatible with most large Grundfos pumps, the new RSI features advanced software that continuously
optimises the solar installation, compensating for fluctuations in the external environment and protecting against power oscillations, to ensure that the installation permanently operates at maximum efficiency, further improving power and water output. The unit’s enclosure class rating means it is resistant to rain, dust and snow, so can be installed without the usual ventilated
“If everyone switched to highefficiency pumps, we could save 4% of the world’s total electricity consumption”
and filter-protected weatherproof cabinet, in ambient temperatures of up to 60ºC. It can therefore be placed directly beneath the solar panel array, using only a very short DC cable feed – an extremely important safety advantage for users and other site personnel. A clever setup wizard enables the RSI to be precalibrated in the workshop prior to delivery. Once on-site, all that is required is a simple ‘plug and pump’ operation, with the new highly efficient solar installation up and running in less than five minutes. For systems operating on a 24-hour basis, an AC and DC power compatible drive means the unit can be switched to mains power or generator via an external switchover box. This enables users to take maximum advantage of solar power during the day, while reverting to traditionally generated power sources by night. Water resource depletion
in the UAE is now reaching critical levels, with agriculture the biggest culprit, currently accounting for around 85% of total water demand. Every day we are throwing valuable water away through inefficient irrigation systems, which can be easily and quickly upgraded using our RSI invertor. We have long experience in developing sustainable pumping solutions for many of the world’s leading industry sectors, which has enabled us to design this state-of-the-art invertor that not only saves energy but also improves the efficiency of systems – enabling us to achieve the same irrigation effect using up to 30% less water. While there is a cost for converting our existing irrigation systems to solar power, it is an investment that will pay for itself many times over, with very significant benefits for both the sector and the UAE as a whole.
Wind affects our world. We know how.
CPP provides 35 years of wind consulting expertise to enhance the value of your project. Services include: • Structural wind loads Unit 2, 500 Princes Hwy. SSS
St. Peters, NSW 2044, Australia
• Wind pressures on cladding • Pedestrian-level wind comfort
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• Natural ventilation assessment
Tel +61 2 9551 2000 info-syd@cppwind.com
www.cppwind.com
• Exhaust dispersion modelling • Wind effects on solar arrays
Units 901-904, Mazaya Business Ave, Plot No. BB2, Cluster H, Jumeirah Lake Tower, Dubai, UAE
Tel +971 (0)4 421 0429 info@cppwind.com