Big Project ME

082

PUBLICATION LICENSED BY IMPZ

JANUARY 2013

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Cover project

Muhammed Bin Rashid City

Industry leader

Muhammed Al Rais

Onsite

Standard Chartered Building

the industry’s best line-up Big Project ME Awards celebrates the best of the best

ALSO INSIDE: MBR CITY in-depth Tender updates muhammed al rais raising islamic finance on-site

M MIDDLE EAST

CONTENTS

January 2013 03

editorial comment preparing for 2013 Big Project Awards proves the industry’s strength in depth

09

the month’s news the big announcement The ambitious MBR City is announced in Dubai

10

news analysis combined approach Cross-industry support is required to further the case for BIM

20

in profile Meet Hill international’s climber Muhammed al Rais outlines the potential of Oman

28

the big feature grand designs in Dubai Why the city needs Muhammed Bin Rashid City

40 big project awards 2012 The best of the best The industry gathers for a night of celebration at the Armani Hotel and to reward excellence

32 ON site A new Standard BPME tours the recently completed Standard Chartered Building in Dubai which channels the very best in Western and Middle Eastern project delivery

44

islamic finance project financing How Islamic financing of projects does not need to be solely focused on large-scale infrastructure building

48

comment in a real estate What can real estate developers do to ensure that the projects can avoid being stuck in development limbo

52

tenders your monthly crib sheet Find out what major (and minor) contracts are currently up for grabs

Riding high as Downtown Dubai is set for major changes.

58

constructive criticism TIme to complete Isn’t it a good idea to finish what has been started?

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PAGE 28

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EDITOR’s COMMENT

M MIDDLE EAST

bigprojectME.com

Preparing for 2013

Publisher Dominic De Sousa GROUP COO Nadeem Hood Managing Director Richard Judd EDITORIAL GROUP EDITOR stephen white stephen@cpidubai.com +971 55 795 8740

2012 was a quiet year for Dubai but you get the sense that it is daring to dream again. In the last two months, we’ve seen some major announcements recently which will hopefully see the city regain its passion for the extraordinary.

You get the sense that lessons have been learned from the past decade in Dubai. The need for a financially sustainable future will hopefully accelerate greater interaction at all levels. As a new city within a city is razed, it is in everyone’s interest that standards are raised within the construction industry.

Beyond Dubai, I think that all of us that ply our trade in the region can look forward once again with optimism. Especially when you consider some of the truly astounding work that has been achieved in trying conditions.

Almost the entire Middle East has seen huge investment and development in the construction industry in the past year. At a time when the rest of the world is facing economic difficulty, the Middle East has shown its ability to dust itself down and come out fighting.

And 2013 shows no signs of slowing down.

Thankfully last month’s Big Project Awards proves that we have the expertise to tackle whatever comes our way. The region is leading the way in terms of numbers and quality of projects. Many of the world’s leading project professionals, architects and contractors are working to ensure what we build here is setting global standards in terms of design and build. It is heartening to see that there is progress from a sustainability stand point too.

The nominations have also highlighted the quality of the region’s ongoing developments and across all of this year’s categories we saw submissions of the very highest standard. It is testament to those selected as finalists that selecting the winners turned out to be an extremely tough job for our judging panel. I would like to take this opportunity to congratulate all the nominees.

deputy EDITOR GAVIN DAVIDS gavin@cpidubai.com +971 4 440 9118 CONTRIBUTING WRITER CHARLES MARTIN MARKETING & ADVERTISING PUBLISHING Director RAZ ISLAM raz@cpidubai.com +971 4 440 9129 COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael@cpidubai.com +971 4 440 9128 SALES DIRECTOR CARLO MENEZES carlo@cpidubai.com +971 4 440 9151 Sales Manager Dhanushka Arjuna dhanushka@cpidubai.com +971 4 440 9163 MARKETING MANAGER CAROLE MCCARTHY carolem@cpidubai.com +971 4 440 9157 DESIGN SENIOR GRAPHIC DESIGNER REBECCA TEECE rebecca@cpidubai.com +971 4 440 9168 JUNIOR GRAPHIC DESIGNER PERCIVAL manalaysay CIRCULATION & PRODUCTION Circulation and Distribution Manager ROCHELLE Almeida rochelle@cpidubai.com +971 4 368 1670 Database and Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147 Production Manager James P Tharian james@cpidubai.com +971 4 440 9146 EVENTS & CONFERENCES Events Director Nayab Raffique nayab@cpidubai.com +971 4 440 9157 Business Development Manager Preijesh Pillai prijesh@cpidubai.com +971 4 440 9162 DIGITAL www.bigprojectme.com Digital Services Manager Tristan Troy Maagma Web Developers JOEL AZCUNA JANICE FULGENICO online@cpidubai.com +971 4 440 9100 Published by

Registered at IMPZ PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 Printed by Printwell Printing Press LLC © Copyright 2013 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.

Stephen White

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Group Editor

JANUARY 2013

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biggest NEWS

Emaar to expand Dubai Mall

title of ‘World’s largest mall’ is threatened

Property developer says that work on expansion will begin ‘shortly’ and will be completed in phases big project, big numbers Emaar Q3 2012 Results: Revenue $5,560,312 Net Profit $1,606,958 Total Assets $61,209,547 Total Liabilities $28,785,505

Total Equity: $32,424,042

Emaar Properties, Dubai’s largest property developer, will commence the expansion of Dubai Mall in Downtown Dubai, it has been announced.

The expansion will include the construction of a new high-street boulevard-style retail destination, as well as new luxury homes and serviced residences in the district.

“With the master-plan of the new expansion now finalised, work will begin shortly, with the various components to be completed in phases,” the developer said.

The announcement comes in the wake of Dubai announcing the commencement of Mohammed Bin Rashid City, a megaproject that will be home to the world’s largest shopping mall.

A $2.72bn theme park project will also be built in Jebel Ali. “Dubai is looking to strengthen its position as a tourism hub in the region, as well as establishing itself as a global destination that can compete with markets in the US and some of the major markets in Europe, such as Paris and

London,” explained Mat Green, head of Research and Consulting UAE, CBRE Middle East, to BPME. “At the moment, Dubai has beaches and quality hotels, but it doesn’t really have the same entertainment drivers, such as Disneyland or Universal Studios that you find in the US. I think that is obviously a key component of this project and Dubai is really just looking to cement its position,” he added.

Emaar also announced that it would be developing the MBR City’s first project, the Dubai Hills residential development. Dubai Hills is a gated community built around a new 18-hole championship golf course. Each plot will be 1,858m2 to 2,787m2.

“Dubai Hills is set to be the first choice for discerning property investors,” said Ahmad Al Matrooshi, managing director, Emaar Properties.

The new project will be between Emirates and Al Khail Road and will also include parks, retail centres, schools and healthcare facilities.

JANUARY 2013

MIDDLE EAST

BIG project ME looks in depth at the reasons behind why Dubai needs to build the MBR CITY ON PAGE 28

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NEWS

bigprojectME.com

Madinat Jumeirah to be expanded New five-star hotel will be added to the existing complex in Jumeirah district of Dubai The Jumeirah Group has announced an expansion project for the Madinat Jumeirah. It will be completed in 2015 and adds a hotel, a villa complex, restaurants and a commercial centre.

There will also be retail stores and a pedestrian precinct.

The current site has three hotels – Mina A’Salam, Dar Al Masyaf and Al Qasr, linked by a waterway.

There is also a traditional Arab Souk, with bars and restaurants.

A new five star hotel will provide 420 rooms with sea views. It will boast several international

restaurants and luxury facilities.

The 45 villas and hotel apartments will be run by Jumeirah Group subsidiary, Jumeirah Living.

These villas will have access to a business centre and several specialist services and amenities.

Gerald Lawless, president and group CEO of Jumeirah Group said that: “Phase IV is a natural extension of the current three hotels within Madinat Jumeirah and will be a further enhancement to luxury hospitality in Dubai. Thanks to the vision of His Highness Sheikh Mohammed

bin Rashid Al Maktoum and the support of our parent company Dubai Holding, Jumeirah Group looks forward to building on Dubai’s reputation as a destination for luxury travellers with this magnificent new development.”

The expansion project at the Madinat Jumeirah is part of the Jumeirah Group’s aggressive expansion plans.

It aims to expand its offering internationally with developments Qatar, Jordan, Egypt, Kuwait, Morocco, India, Thailand, China and Azerbaijan.

Qatar to tender 1,800MW solar plant Gulf state looking to increase its renewable energy footprint Qatar authorities have revealed that they will ask companies to tender for a 1,800 megawatt (MW) solar energy plant, to be built in 2014, according to Reuters.

The plant will cost between $10-20bn.

The tiny Gulf state is currently the world’s highest per capita greenhouse gas emitter, as it seeks to increase its renewable energy production.

“We need to diversify our energy mix,” said Fahad Bin Mohammed al-Attiya, chairman of the Qatari organisers of climate talks in Doha. OPEC member Qatar is the world’s

top exporter of liquefied natural gas (LNG). It has so far disappointed environmentalists by failing to set clear targets for reducing its greenhouse gas emissions at the UN talks, arguing its LNG exports help other nations turn from more polluting coal.

The country has been wary of a global shift to renewable energy, fearing it will hit demand for oil and gas from OPEC producers.

Qatar said the power generated by solar energy would mainly power its desalination plants, which are currently gas fuelled. The plant construction is expected to be completed by 2018. Attiya did not provide an exact figure on how much carbon dioxide the plant would displace but said it would be “significant”.

Qatar to float rail tenders by Q2 2013 Qatar will float tenders for the manufacture and supply of rail coaches and the installation of control systems for the Greater Doha Metro project by the second quarter of 2013, it has been announced.

The multi-billion project will see a workshop organised for prospective bidders to familiarise themselves with the tendering process and safety aspects of the control systems, Qatar Rail said in a report by The Peninsula, a Doh-based newspaper.

Companies with a proven track record in the manufacture of rail coaches and the installation of control systems for mega rail projects can send in workshop requests to: info@qr.com.qa.

Qatar Rail said that work on the first phase of the project – that of making designs and construction sites ready – had already begun.

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Big Project awards 2012: WHo are the best construction companies in the Middle east? On page 40

JANUARY 2013

NEWS

Ezdan to build 50,000 housing units by 2014 Project a part of the plan to develop country in lead up to FIFA 2022 World Cup

Champion Doors eyes GCC hangar market Finnish firm wins contract to supply hanger doors to Airbus hub in Toulouse Finnish company Champion Doors recently announced a new contract to supply three hangar doors to Toulouse company EADS, makers of the Airbus family of jets. It is an important element of the new Airbus ‘Superjumbo’ 380 Maintenance Hall in Toulouse.

Director Mika Hosio pointed out that currently a large percentage of their business is based in the GCC, and the market in the region is growing.

The company is looking at increased representation in Dubai. Champion Doors has already completed installations in Abu Dhabi and Sharjah. They also build doors for harbour installations.

Airbus engineers made a rigorous inspection of other hangars that Champion Doors has worked on. The Finnish Company has installations all over the world, and currently invoices to 39 countries.

Much of their product range is military specification and operates over a wide temperature range from the arctic to the desert.

“The Airbus contract is much more complicated than just supplying doors.

There was a rigorous selection process, and even before we were awarded the contract we were required to provide exacting planning and co-operation to support this crucial element of the project,” Hosio said.

30 days to drain a lake

DMCC Is converting its 55,000m2 lake in JLT, Dubai to make a landscaped park

Qatari real estate developer Ezdan has signed an agreement with the government to build 50,000 residential units by 2014, as part of a plan to provide enough accommodation for the FIFA World Cup 2022, according to a report.

Ezdan is currently working on several projects, at least 12 of which are expected to be completed in 2014, with another 31 to be completed by 2018, said the chief executive of Ezdan, Ali Al Obaydali.

Ezdan, previously known as Thani Bin Abdulla Housing Group (“TAHG”), is one of the largest and most reputed

real estate companies in the State of Qatar and the GCC. Founded in 1960, the company operated using the name of its founder Sheikh Thani Bin Abdulla Al Thani and was subsequently transformed into a limited liability company in order to avail of the growth opportunities in the field of real estate in Qatar.

Since its foundation, Ezdan has been a developer of residential and commercial properties in Qatar. The company caters to all income segments to satisfy the growing demands of Qatar’s economy and its burgeoning local and expatriate population.

Jordanian construction industry on verge of collapse, Warns association Contractor association says unpaid government dues crippling local construction companies Jordan’s construction industry may be on the brink of collapse due to unpaid government dues and the sharp drop in output, the Jordan Construction Contractors Association has warned.

A report in the Jordan Times newspaper has said that the

government currently owes local construction companies around $168.9mn, quoting Ahmad Tarawneh, president of JCCA. Although the government has pledged to repay its debts, it has not kept this promise, Tarawneh said. The value of projects carried out by local contractors

this year stood at $210.8mn.

In 2009 it had reached $5.06bn, he added.

Tarawneh warned that the conditions in the market could force companies to lay off employees.

There are 2,223 registered contractors in the Kingdom of Jordan employing more than 100,000 people.

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Muhammed al rais on why Hill international is focusing on the oman market on page 20

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NEWS

bigprojectME.com

Dubai best Middle Eastern city for infrastructure The Mercer City Infrastructure Ranking for 2012 rates the world’s best cities Dubai has been ranked as having the 34th best infrastructure in the world, according to the Mercer City Infrastructure Ranking for 2012, making it the only Middle Eastern city to appear in the top 50 list.

An annual list released by the research consultancy, the Mercer survey ranks infrastructure in the world’s cities against a comprehensive checklist. This includes electricity supply, water availability, telephone and mail services, public transportation, traffic congestion and the range of international flights from local airports.

“Infrastructure has a significant effect on the quality of living that expatriates experience. While often taken for granted when functioning to a high standard, a city’s infrastructure can generate severe hardship when it is deficient. Companies need to provide adequate allowances to compensate their international workers for these and other hardships,” said Slagin Parakatil, senior researcher at Mercer.

Dubai’s ranking made it the best in the Middle East, with the majority of the region’s cities ranking outside the top 100.

Abu Dhabi (72), Muscat (94) and Cairo (95) are the next highest ranked Arab cities, according to Mercer. Doha is ranked at 102, while Tunis and Manama occupy ranks 103 and 110 respectively. Meanwhile, Baghdad was the lowest ranking city regionally at 220, narrowly missing out to Sana’a in Yemen, which came in at 219.

Law firm calls for off plan sales regulation Hadef & Partners report says that Dubai could face ‘boom or bust’ cycle Off plan sales need to be regulated a report by Hadef & Partners has said.

The Dubai-based law firm has called for offplan sales to be regulated correctly or they warn that Dubai could face another boom or bust cycle.

Off-plan property sales were the backbone of previous Dubai property deals, with investors buying off plan and then flipping the sale. Sometimes the person who occupied the

property could be the fifth or sixth owner.

Investors should be cautious in relation to offplan property. “Buying offplan property is still a risky business. Many investors cannot wait to get back to the good old days of 2002 to 2008 and another upward cycle,” Hadef & Partners said in its 2012 report on the legal state of the Dubai real estate market.

“However, if the past has taught us anything, it is that

Nakheel to award villa tenders in Jan 2013 Developer currently assessing tenders for luxury homes at Jumeirah Park

MIDDLE EAST

Nakheel, the Dubai government backed real estate developer, has announced it will award contracts for the construction of 381 Legacy villas at Jumeirah Park by mid-January 2013.

The developer said that it is currently assessing tenders for the luxury four and five bedroom homes that are being scheduled to be built.

Work on the project is expected to start by February

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price rises on the back of multiple trades of paper (ie. off-plan secondary market sales) can lead to a cliff edge if the projects are not delivered,” it added.

Asked about the future preferences, many of the 8,500 respondents to the survey did express desire to invest in property in the next 12 months.

However, only 20% were interested in investing in the UAE and just 12% wanted to buy off-plan.

2013, with a scheduled completion date in the fourth quarter of 2014.

Legacy Villas are the latest addition to Nakheel’s Jumeirah Park community, which spans 350 hectares and, when complete, will have 2,000 homes. So far, 545 villas have been completed.

The developer said that it has sold more than $326.7mn worth of properties in the Legacy Villas project.

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NEWS

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Makkah contractors facing cement Crisis More than 300 construction projects facing suspension due to cement shortage, says MCI

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Falling reserves of cement stock have triggered a crisis in Makkah, with the price of a single bag of cement reaching SAR20 on the black market, media reports have said.

Local contractors say that they fear that more than 300 construction projects will be suspended due to the shortage of cement in the Holy City. Meanwhile, other contractors have said that they have resorted to buying cement at higher prices on the black market because they fear being slapped with heavy fines for not completing projects at the agreed-upon times.

JANUARY 2013

Abdullah Al Saeedi, chairman of the Contractors Committee at the Makkah Chamber of Commerce and Industry (MCCI) said that the chamber planned to raise the issue with the Council of Saudi Chambers of Commerce and Industry to find an immediate solution.

“The crisis began to unfold 10 days ago when distributors failed to meet the rising demand for cement,” Al Saeedi said, though he warned that prices could rise even further.

A report in Arab News said that the shortage could be more acute next year, with the

expansion work of some cement factories likely to last at least 18 months, with the establishment of new factories likely to take as long as 24 to 30 months. In the Taif market, the price of a cement bag has reached SAR21, the paper said, adding that even black market supplies have been reduced to a trickle.

The report added that the Ministry of Commerce and Industry said that it was in total control of the situation.

Contractors and drivers said that factories were not releasing sufficient quantities and allowing only one full load for each truck in a week.

QIA and Canary Wharf prepare $1.6bn London development Companies to build 790 homes at the site of Royal Dutch Shell’s London headquarters Qatar Investment Authority and the UK based Canary Wharf Group plan to build 790 homes at the site of Royal Dutch Shell’s London headquarters, it was announced.

According to a Bloomberg report, the companies plan to develop the property to gain from surging prices and rising rents in the UK capital. Qatari Diar Real Estate Investment Co, a unit of the sovereign-wealth fund, and Canary Wharf Group will spend in excess of $1.61bn (including land purchased last year) to develop eight buildings on the south bank of the river Thames.

4,500

KSA to invest $806bn into construction projects

Nakheel delivering developer says it will deliver 4,500 units in 2013

Kingdom’s construction market to grow at a rate of 32% to 35% year-on-year up to 2015 The Saudi construction market is expected to grow at a rate of 32-35% yearon-year until 2015, according to a report published by Zawya.

The Saudi construction market is likely to continue to increase in size as the Kingdom plans to invest $806bn in upcoming projects, planned until 2030. It is currently estimated at $1.6bn, it added.

A BMI report forecasts a buoyant 2013 for the Saudi construction industry. Funding – is unlikely to run dry as the government’s vast infrastructure investment scheme aims to diversify away from oil, and keep protests at bay and stave off public discontent.

BMI forecast a robust 7.5% real industry growth for 2013, reflecting the significant number of contracts awarded both in 2011 (140% year-on-year increase), and in H212 (50% increase y-o-y), as well as increased government spending.

Over the medium term, a healthy annual average growth of 5.6% between 2013 and 2017 is seen.

The city of Jeddah is currently home to some of the most exciting projects in the Kingdom. The Jeddah Mayor Dr Hani Abu Ras accepted the award for civil development of the year at last month’s Big Project ME awards ceremony.

NEWS

Bahrain’s Investcorp buys 1,900 Texas, us residential units $100m investment in Houston comes as Texas market becomes increasing attractive to investors Park: a 168 unit community in Dallas, Villages of Meyerland: a 714 unit community in Houston, Cottages of Champions Forest: a 300 unit community in Houston, Villas at Edgewater: a 414 unit community in Houston, Houstonbased Mosaic Residential.

Houston’s multifamily market has spiked in recent months.

Many recently announced projects incorporated in mixed-use developments had lost steam during the recession but

Dubai property to grow at steadier pace in 2013 Property market will offer solid investment opportunities to investors Amid predictions of a boom in 2013, Dubai based property developer Damac has offered has released a report about the property market situation in the emirate, it has announced.

The emirate’s property market will grow at a steadier and more stable pace over the next year, offering solid investment opportunities for savvy investors, according to the real estate developer.

“2012 has delivered on our predictions at the start of the year – prices in the Dubai market steadily grew with each quarter

have jumped back online this year.

“We view Texas as a very attractive marketplace when considering multifamily property investments.

Relatively low levels of unemployment, local job creation, a healthy rental market, strong underlying asset characteristics and the overall state of the economy have created attractive conditions for real estate investment,” Mohammed Al-Shroogi, Investcorp’s president for Gulf business, said.

outperforming the last. In 2013 buyers will definitely be able to benefit from this capital growth, but will need to be very savvy about where they invest and in which projects in each area,” said Ziad Al Chaar, Damac Properties’ managing director.

He pointed out that Jumeirah Village, iMPZ and Emirates/Al Khail Road will grow in value in 2013.

Independent reports have put the growth in prices of real estate in Dubai through 2012 at anywhere from seven to 19 per cent, depending on location and the quality of the project.

The serviced apartment sector is likely to witness huge demand due to undersupply. Dubai currently has less than 200 serviced apartment projects compared to nearly 600 hotels.

DIA eyes Q1 2013 opening for Concourse III $3.5bn concourse will connect to two major public levels of Terminal III Concourse Three at the Dubai International Airport has gone on its first public trial run, with a possible opening in the first quarter of 2013 in mind, a senior official has said.

Built at a cost of $3.5bn, the concourse will be connected to the two major public levels of Terminal 3 via an automated people mover. This will be in addition to the vehicular and baggage handling system utility tunnels that will run through the building, a report in Gulf News reported.

“We are on track for the opening of concourse three in the first quarter of next year as we start its first public trial run on Saturday,” Paul Griffiths, Dubai Airport’s chief executive officer, told the newspaper.

The concourse will be 645m long, 90m wide and 42m high in the centre, from the apron level. It will accommodate 20 aircraft stands, of which 18 will be exclusively used by the Airbus A380-800s.

The inauguration of the project will see Dubai International Airport’s passenger handling capacity increase to 75mn. Airport traffic is expected to have crossed 57mn in 2012.

Dubai’s government is to invest $7.62bn into the fourth phase of expansion of Dubai International Airport, which will see its total capacity rise to 90mn by 2018.

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Bahrain-based alternative asset manager Investcorp has acquired five real estate assets in the US for $100mn, according to a report by Reuters.

Earlier this year, Investcorp acquired four multifamily properties in Houston in a separate transaction.

The entire portfolio consists of 1,900 units and has a collective occupancy of 91%.

It includes: Bristol Square: a 336 unit community in Austin, Waters

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NEWS ANALYSIS

bigprojectME.com

Time is right to champion BIM BIM experts tell Big Project ME that the time is ripe for specially formed government task forces to implement the technology

A

t the end of the year, Heriot Watt University in Dubai played host to a BIM forum that gathered some of the foremost experts in the city for a discussion about the future of the technology in the region.

During the event, industry experts said that they are now seeing a raft of clients expressing an interest in the technology, as awareness about the need for quality build and increased life-cycles grows. In these tighter financial climates, gaining maximum value out of a project becomes paramount, and developers are embracing BIM as a way of doing just that. Risto Raty, EVP of Tekla, believes that major projects in Qatar, Saudi Arabia, the UAE and Jordan are benefitting from the implementation of construction software technology such as BIM. With this in mind, experts are now calling for the formation of a task group or body that will mandate the use of BIM in the industry, while also setting up regulations and standards to be followed.

Dr Ozan Koseoglu, a lecturer for Construction Management and Surveying at the School of Built Environment at HeriotWatt University in Dubai, said that while it’s still early days, there’s still a lot that can be done to encourage further BIM adoption.

“We’re building up relationships with the industry and also talking with relevant bodies about making a standard approach to BIM for the industry over here, bringing government, industry and universities together,” he explained further. “They (the clients) want to introduce BIM, so let’s get all these bodies together. Rather than changing everything from scratch, we need to think about how we can work together.”

Raty adds that the next step in the

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“They (The clients) want to use BIM, so let’s get all these bodies together”

JANUARY 2013

process would be to find a ‘champion’ for the technology within the government, someone with enough understanding of the technology, business models and legislation to drive the changes through.

“The support is finally coming, but now we need a champion within government.

It could be an individual or a small group, but it’s a visionary, multi-skilled role that must incorporate understanding of projects, business models and technology,” he explained, backing Dr Koseoglu’s call.

While organisations like BuildingSMART have done tremendous work for the BIM industry, Dr Koseoglu cites the examples of the UK and US as successful drivers of BIM mandating, integrating the industry on a number of levels to get the best results. “[If you follow the US/UK methods] once you come to the construction phase, you’ve already identified the clashes, you’ve already built the project in a virtual environment and you’re ready to build the project,” he said.

Risto Raty added that the time is ripe for the government to take the lead and organise an endorsed education programme, with BIM standards in place.

“It’s not a question of BIM being adopted. It’s just a case of how quickly.

How companies will train staff and how governments will help support that financially. How companies overcome training their employees will be the next hurdle,” he explained.

Dr Koseoglu added that the UK government sets targets for its BIM tasks force and that encourages it to work with the industry and education departments to deliver. As things slowly fall into place and attitudes change, it’s becoming increasingly clear that the mooted task forces are the way forward for the industry, providing a clear and organised mandate for both the industry and clients to follow. All the pieces are now in place, all that remains is for the government to put them together.

Dr Ozan Koseoglu, Heriot-Watt University

Risto Raty, EVP, tekla

Big Project ME will be hosting a Buyer & Sponsor only Golf Day in March and October next year. The aim is for you to meet the contractors and consultants on a one to one basis and network in a relaxed, funfilled environment!

GOLF DAYS MARCH, 2013

OCTOBER, 2013

CONTRACTORS CUP

CONSULTANTS AND ARCHITECTS CUP

CONTACT: PUBLISHING DIRECTOR Raz Islam +971 4 440 9129 raz@cpidubai.com

COMMERCIAL DIRECTOR Michael Stansfield +971 4 440 9128 michael@cpidubai.com

MARKETING MANAGER Carole McCarthy +971 4 440 9157 carolem@cpidubai.com

IN PROFILE MOHAmmed al rais

bigprojectME.com

meeting hill’s

climber

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MIDDLE EAST

optimistic on oman Al Rais is leading the Hill International charge in Oman, a country he feels has a lot to offer.

JANUARY 2013

Gavin Davids talks to Mohammed Al Rais, SVP and managing director of Hill International ME, about tackling Oman, Iraq and the project management market in the GCC

IN PROFILE MOHAmmed al rais

B

“It will be a PM-CM role that we’re looking for with the Ministry of Transport, and hopefully our role will expand. This is what we’re aiming for in our entry into Oman”

HIll’s benchmarks n Abu Dhabi:

Etihad Towers Sheikh Zayed Grand Mosque ADNOC HQ Sky Tower Midfield Terminal Complex

n Dubai:

Emirates Hills Palm Jumeirah Capital Towers Dubai Int Airport

n Oman:

Musacat and Salalah Airports

n Saudi Arabia:

Jabal Omar Development Tabuk Cement Plant

n Lebanon:

Beirut Terraces Residential Tower

n Qatar:

Navigation Tower

projects will prove to be the exception to the rule, as the focus will remain on project and contract Management.

“We will target the PM-CM scope of services, not like the Oman airports, where we agreed to become the engineer and manage all the issues. It will be a PM-CM role that we’re looking for with the Ministry of Transport, and hopefully our role will expand. This is what we’re aiming for in our entry into Oman,” he says confidently.

This focus on the Sultanate is no coincidence, Al Rais says, as the company has identified it as a market it would like to enter into before competitors get wind of the opportunities there.

“We’ve focused on Saudi Arabia for the past few years, but our next focus was always going to be Oman, and we’ve been doing so for the last eight months. To be able to get into the Omani market is a fantastic opportunity for us.”

“For us (as a company), we move very carefully and steadily. We study what we’re getting into and we don’t take a haphazard

JANUARY 2013

MIDDLE EAST

ack in 1977, Dubai was not much more than a sleepy little trading town, with business and construction focused around the Creek. It would have been impossible to imagine back then what the emirate would eventually become.

The same could be said for the likes of Oman, Doha, Abu Dhabi and even Saudi Arabia: countries and cities that were unrecognisable compared to their present state.

It was into this environment that Mohammed Al Rais came to the region, looking to establish himself in the nascent construction industry. With more than 35 years of accumulated know-how behind him, Al Rais is perfectly positioned to comment on the stupendous growth that the GCC region has undergone since those distant days.

As a senior vice president and managing director with Hill International (Middle East), Al Rais is tasked with overseeing the Middle Eastern operations of the firm’s Project Management Group.

As part of this, he is required to formulate and guide the strategic direction of the company’s operations in the UAE, Kuwait, Bahrain, Qatar, Saudi Arabia and Oman.

In addition, he oversees operations in Lebanon, Jordan and Iraq.

Having recently won a contract in excess of $110mn from the Omani government for the Muscat and Salalah International Airports, Al Rais says Hill International is eyeing the market in the Sultanate as it looks to get a leg up on the competition.

“The Omani government has embarked on a very ambitious programme. There’s a lot of infrastructure, a lot of roads, the issue of the rail as well, there’s also ports.

There’s a very aggressive programme for development, which is set by the Sultan and the Omani government. What we are looking for is to be part of that,” he explains.

Although Hill International is the engineer for the Muscat and Salalah airports, it was only appointed after the Sultanate decided to cancel its contract with Cowi-Larsen after December 2012.

Work on the projects began on 1 January, 2013 for Hill International.

However, Al Rais says that those two

21

IN PROFILE MOHAmmed al rais

22

MIDDLE EAST

approach to countries or projects. We do our analysis, risk mitigation as far as what projects we’re going into, where we’re walking into. We select our clients like our clients select their PM-CM. It’s not a matter of just jumping into anything. We’re very selective in what we approach and that has proved very successful (for us),” he explains.

“There’s no sense in getting into trouble projects were you eventually don’t get paid or get stopped, (something we’ve seen throughout the Gulf ). It was for a very short period, but it did happen.

So for us, it’s very important that we select our clients and then we move. At least we can start supporting from day one then.”

This attitude is what will stand Hill International in good stead as it moves into new markets, Al Rais says. While the immediate focus is on Saudi Arabia and then Oman, he says that the company aims to expand its project management operations, with opportunities in Bahrain, Abu Dhabi and most excitingly, in Iraq.

“In Iraq, we’re going ahead with five new projects. We’re going into universities with the Ministry of Higher Education and the Ministry of Youth. We’ve just started another 30,000 seat stadium in Baghdad.

So there’s a lot of work going on there, but we haven’t really pushed it so far. We’re solidifying Saudi, we’re opening up Oman and the next step will hopefully be in Dubai as well,” he says.

One crucial element of the work Hill does in these markets is helping to bring

JANUARY 2013

bigprojectME.com

them up to speed with the best practices and procedures that are in effect in the industry. While it may be a slow and challenging process, it’s ultimately a rewarding experience for the company and their clients in government.

“We already have a contract with one ministry in Saudi Arabia. We’re in negotiations with another ministry in Iraq as we speak, to actually set up processes, procedures and contracts, standardisation of contracts and standardisation of procedures, so people will be able to work. It’s been very slow, definitely, but it’s happening now.”

He asserts: “It’s a matter of training them; it’s a matter of putting a process and system in place, so that at least the bureaucracy and the old way of doing things become more streamlined.”

Pointing out the success Dubai has had in this regard, Al Rais holds up the emirate as an example of what can be achieved if government and industry work together. Encouragingly, the rest of the region seems to be following suit, with standardisation and regulations

“It’s a matter of training them; it’s a matter of putting a process and system in place, so that at least the bureaucracy and the old way of doing things become more streamlined”

IN PROFILE MOHAmmed al rais

prequalification levels for contractors hurt Iraq a lot in my opinion.”

“The top internationals will not get work when they’re competing with small companies and I think the market of Iraq has learnt from that and is in a correction phase. There are still a lot of problems,” Al Rais claims.

However, he again refers to Dubai as the standard that the rest of the GCC needs to follow, pointing out that the emirate has utilised its resources to the best of its advantage.

“Dubai, I believe, is one of the best construction markets in the world. It is a pot of cultures; it is a pot of standards, people from all over the world,” he says.

“Look at Dubai five or ten years ago, wbefore it started to peak. Everyone

from all over the world was here, South Africans, Europeans, the Far East, Philippines, the Arab World, Indians, everyone was here.

“They created a pot of cultures, not only in living, but also in construction.

Then when Dubai started kicking off, they utilised the best systems, the most modern techniques, they used the best and the best and the latest.”

“The construction industry in this country leads the field, from fast track to delivery to standards. Look at the infrastructure and the highways, other countries would take twice as much time to build these things. Dubai leads and other countries will follow,” Al Rais concludes, confidently and with more than a touch of optimism. n

“Anybody who had a construction company could walk in and they could take jobs, which hurt the big boys who could deliver.”

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MIDDLE EAST

becoming increasingly common. This becomes even more important in light of governments in the region becoming increasingly vocal about promoting local companies and contractors for jobs in their countries. In such a scenario, the need for efficient and effective project and contract management becomes vital.

“The GCC countries are aware of PM-CM and they’re using PM-CM, not in everything, but for most things. That’s very encouraging. The UAE and Dubai is ahead of anybody else in this regard, but everyone is looking to catch up and everyone is catching up; this is hugely encouraging,” Al Rais muses.

“In Iraq, project management was not part of the structure, so that is now happening. It’s encouraging that now we’re being called in to commence project management as well as general formats of consultancy, contract management and whatever. It’s an issue of support and setting up systems.”

He adds: “The issue isn’t bringing the expertise, but to ensure that whatever expertise is coming in, will do some training in the local market. So at least there’s a transfer of knowledge and basic training of project management as well,.

This transfer of knowledge is crucial if governments are serious about allowing local contractors access to their major projects, Al Rais says. While he stresses that it’s important to involve local firms in projects, he warns that projects could easily go awry if the firms don’t have the fundamentals in place.

It is here that the work that Hill International does with ministries comes into play, with the onus on ensuring that local companies are prepared to embrace all the A to Z’s of project management, right from design and budgets to reviewing everything up front.

“In Iraq, there are a lot of companies coming in and there’s a lot qualifying (going on) for these companies. And that’s why there were a lot of problems in kick-starting these projects three or four years ago,” he says.

“Anybody who had a construction company could walk in and they could take jobs, which hurt the big boys who could deliver. At the end of the day, those companies walked away, thus the non-

23

14-17 April 2013 Jeddah Centre for Forums & Events Kingdom of Saudi Arabia Co-located with

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Following a successful 2012 event, the Construction Machinery Show, the largest construction machinery exhibition in the Gulf region, returns to Jeddah between 14-17 April 2013.

With the total value of awarded construction contracts reaching $72 billion in 2011 and with much more to come, the Construction Machinery Show is the ideal opportunity for buyers of construction machinery and heavy equipment to meet manufacturers, suppliers and distributors.

A total of 450 billion Saudi Riyals ($120 billion) will be spent on construction projects between 2012-2016, and much of the development is focused on turning Jeddah into a world class city, making it the perfect location for the Construction Machinery Show.

The 2012 exhibition proved that Saudi Arabia is the most dynamic country in terms of construction in the region, drawing praise from exhibitors for the quality of his attendees and the number of deals signed on the show floor.

With over 20,000 sqm of space at the Jeddah Exhibition Centre dedicated purely to construction equipment - the Construction Machinery Show in 2013 will once again stand out as an event where visitors come to buy.

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BIG FEATURE MBR CITY

bigprojectME.com

Why is Dubai

dreaming

26

MIDDLE EAST

again?

JANUARY 2013

BIG FEATURE MBR CITY

Can the construction of Mohammed bin Rashid City help kick-start a new boom for the industry in Dubai just when we thought the dream was over? Charles Martin writes director of CBRE in the region. He points out an anomaly in the way that Dubai operates. If you split the market into residential, office and retail you find differing results. Currently office space is showing roughly 47% of the overall stock unoccupied. This will rise to 50% this year.

Yet there is a genuine shortage of good office space and rents are rising near the Sheikh Zayed Road artery.

“There is a lot of offshore money that would like to enter the Dubai market but the investment opportunity is simply not there,” says Maclean.

There are also, according to Maclean, at least three clients of his trying to obtain 50,000sqm properties in Dubai.

In terms of residential property CBRE estimates that some properties are raising their rents this year by 26%. So there are strong indications of need for more housing stock in the city.

One of the major concerns is how much this will cost and how it will be paid for.

Sheikh Mohammed offered no word on who would finance the emirate’s latest project, how much it would cost or the timetable for construction. He said only: “We have to start work immediately,” while indicating that investment would total several billions of dollars. He indicated that they had the finance though but declined to offer its source.

We can only guess how it will be paid for now but BPME can offer a guide to at least some of the costs. There will be at least a hundred new hotels, and in Dubai an average hotel has 250-350 rooms.

Assuming most of the hotels are five-star, the cost is roughly $110 million per hotel.

“you can’t micro manage a city, and some elements that seem odd are part of a larger plan. Planning in dubai has matured. IT has grown up”

JANUARY 2013

MIDDLE EAST

I

n November 2012 HH Sheikh Mohammed bin Rashid al-Maktoum, Prime Minister and Vice President of the United Arab Emirates, announced Mohammed bin Rashid City. It is a massive project, the largest announced in the Arabian Gulf for years.

“The current facilities available in Dubai need to be scaled up in line with the future ambitions for the city,” Sheikh Mohammed said.

The development, a joint venture between Emaar Properties and Dubai Holdings, will be located between Sheikh Zayed Road, Emirates Road and Al Khail Road. The announcement was vague in terms of who would finance it, what was the driving force, and specific details.

At its heart is a public park Sheikh Mohammed said would be 30% larger than London’s Hyde Park. And the development means that Dubai will retain the world’s largest shopping mall. There are going to be a 100 new hotels to add to the 400 already tussling for tourists.

Separately there is a canal system with waterborne public transport. His Highness also announced the launch of the ‘Dubai Modern Art Museum & Opera House District’ in Downtown Dubai.

Literally weeks after the announcement His Highness, unveiled Dubai Hills, the first project in the new ‘city within the city’ development. The new gated community will provide ultra-luxury residences, designed to the bespoke considerations of the owners. Truly unparalleled in the residential project development history of the city, Dubai Hills ushers in a brand-new lifestyle that will set a new mark in high-end lifestyles, following the enormous success of ‘Emirates Hills’ developed by Emaar.

The announcements were greeted with caution by some members of the construction community, some cynicism by others and with joy by those companie who will be getting RFP and Requests to Tender notices.

Nicholas Maclean is the managing

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BIG FEATURE MBR CITY

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MIDDLE EAST

Let us assume that there will be some four star hotels in the mix, they come in at $68 million per hotel.

The project includes the largest mall in the world, the Mall of the World. The cost per square metre of a mall is approximately $2,500 USD. A typical UAE mega mall project is roughly 200,000 square metres in scale. The Dubai Mall is currently roughly twice the size of the Mall of the Emirates, so would cost more than a billion dollars.

The Dubai Mall is being expanded though, so if we assume the new Mall of the World will be at least five times the size of the Mall of the Emirates you would expect a cost of $2.5 billion dollars.

One of the major elements of the MBR City project is the Universal theme park, developed in partnership with Universal Studios. There is a definite advantage to a theme park in MBR City. Imagine trying to sell Dubai as a holiday destination to someone in central Europe. The flight is roughly the same as to Orlando, Florida.

Dubai is open on two of three holidays in a year; it is not a summer destination.

Currently justifying Dubai as a family destination is a hard sell. Matthew Green, head of research at CBRE agrees: “Expanding and improving tourism-related infrastructure is clearly required if Dubai is to compete on the global tourism stage.”

In 2012 it was estimated that Dubai attracted close to 10 million visitors, up around 10% on 2011 figures. However, to meet its long-term goal of 15 million tourists there will need to be a prolonged period of solid visitor growth. This will

JANUARY 2013

bigprojectME.com

“Most people talk, we do things. They plan, we achieve. They hesitate, we move. We are proof that human beings have courage to transform a dream into reality”

GOING DOWNTOWN Dubai’s Downtown area will be transformed by the projects that have been outlined for MBR City.

of course require additional investment in order to create tourism drivers in the form of leisure and cultural attractions, as well as an overall improvement in the emirates infrastructure so that the city can handle the additional tourism capacity for years to come.

Matthew Green explains: “Although 100 hotels have been suggested for MBR City, we see this level of commitment as being spread over several decades and phased so as to avoid negative impact on supply and demand fundamentals. With around 55,000 hotel keys already in the pipeline and a further 14,000 new rooms to be added by 2015, there is already significant supply to be added to the hotel inventory in the medium term.”

The main consideration, from a construction view is, who is going to build MBR City? There are also questions such as the potential speed of the development and what effect it will have on the infrastructure of the city. Dubai’s new city within a city will be built by Dubai Holding, a conglomerate owned by the Sheikh, and Dubai’s premier real estate firm, Emaar Properties, according to a press release from Emaar.

But what about the infrastructure? Wael Allan of Hyder Consulting explains: “The infrastructure is there. You need roads, drainage and these have been strategically developed over a number of years. You need transport and the RTA has this planned. The Dubai Hills announcement makes perfect sense. You bring the people in and they use water. Then you recycle that water and use it to make parks and green features.

“The transport system here is very good, probably the best in the GCC. The combination of the Metro, the road system and the taxis are great. In JBR the tram system is being built and feeder buses bring people into the central zones.

Dubai is one of the only cities in the world

BIG FEATURE MBR CITY

Middle East. It is easy to attract staff here and when they arrive there is the ability for them to have a good social life. Also Dubai is safe and family friendly.”

Wael Allan of Hyder agrees: “Without specific financial incentives, such as those offered by Abu Dhabi, Dubai would naturally be the first choice for corporates.”

The question is whether the Sheikh making announcements like MBR city is an attempt to prime the pump and talk up Dubai to the world. Wael Allan says, “that’s the job of a ruler. It’s what he should be doing. Only he has a clear vision of where Dubai is going and he is there to drive progress forward. It’s exactly the same as the head of any other country.

He is our leader and represents Dubai to the world.”

CBRE’s Green agrees: “The MBR City project is clearly a long term strategy which requires a sensible and methodically planned phasing system to deliver supply to the market over the next 20-30 years.”

Perhaps the last word should come from Sheikh Mohammed: “Most people talk, we do things. They plan, we achieve. They hesitate, we move ahead. We are living proof that when human beings have the courage and commitment to transform a dream into reality, there is nothing that can stop them.” n

Retail therapy Anyone who doubts the efficiency of Dubai’s retail environment should seek a padded room, because the current malls are among the healthiest and most profitable in the world.

The Dubai Mall is already the world’s most visited shopping and leisure destination having welcomed over 54 million visitors in 2011, and more than 44.5 million visitors from January to September 2012, an increase of approximately 15 percent compared to the same period last year.

With 1,200 retail stores and 160 F&B outlets, the mall has several worldclass leisure attractions including Dubai Aquarium & Underwater Zoo. Ahmad Al Matrooshi, Managing Director of Emaar Properties, said: “The Dubai Mall has established its central identity in the global retail sector by serving as the ultimate choice of shopping and leisure for nearly 2.5 billion people who are only a four-hour flying time from Dubai. In fact downtown Dubai is the most visited developed site in the Middle East, not religious site, but developed site.”

JANUARY 2013

MIDDLE EAST

where you can live without a car. If you compare it to Los Angeles for example, it has a comprehensive mass transit system. The integrated characteristics of Dubai’s transport system has improved exponentially in recent times.

“Before any development is proposed the government calls in consultants and they define the need.Planning has matured a lot since Hyder started working in Dubai more than 30 years ago. It has grown up.

You have to understand with cities you start with the larger picture and then zoom in. All of the elements lock together and no one part can be developed without reference to the others. Crucially you can’t micro manage a city, and some elements that seem odd are part of a larger plan.”

Amongst all this good news though, are some voices of dissent. Mohammed Al Rais, managing director of Hill International, says that: “Dubai needs to complete stalled projects before it embarks on new projects such as the MBR City and the Business Bay Canal project. The MBR City is actually a continuation of Business Bay, while the Canal project, will link it with the other side (of Dubai).

It was something that was discussed, from memory, almost eight years ago.

But it was never taken up at that time.”

Hyder’s Allan offers an opposing view: “I can see the argument, but the canal project will not affect the overall transport of the city, maybe 2-4% and that will mostly be tourist related traffic.

Obviously the canals will add more waterfront developments to Dubai and those properties are desirable. As for developing what we have, there are good developments and bad ones. The good ones will eventually get developed.”

The crash of 2008 was not Dubai’s fault, it was the fallout from the world economic crisis originating in the USA and passing across Europe like a virus. Dubai appears to be bouncing back but the rating agency Moody’s downgrading of Emirates NBD, Commercial Bank of Dubai and Mashreq bank is a reminder that the bad debts of the last boom weigh on the Dubai economy.

One thing is sure, though. As Nicholas Maclean of CBRE points out Dubai is a sort of Middle East-light for investors: “All things being equal investors will choose Dubai as their point of entry into the

29

bigprojectME.com

A WINNING EVENT

O

30

MIDDLE EAST

ver the last few years there have been a lot of award ceremonies in Dubai. Each has heralded the new dawn of whichever industry they were lauding. There have been so many that few would recognise real light as anything else but a blinding distraction.

This month, though, the 400-strong crowd, gathered at the Big Project awards in the Armani Hotel in Dubai, showed a quiet confidence. And these are the people who make it happen. It seems that everything in Dubai is built on somebody’s vision. The assembled crew at the Big Project ME awards take visions and turns them firstly into construction sites, and finally into gleaming icons of wealth and power.

This confidence was quiet, but there was an underlying power. One man BPME spoke to employs over 17,000 people, and he was genuinely optimistic.

This quiet competence was reflected

JANUARY 2013

in the prizes. These were not baubles awarded for some fashion brand, they reflected real achievement and solid foundation.

Paul Floyd, MD of sponsor Famco, highlighted this in his speech. He spoke of weathering storms and quoted a proverb ‘Calm waters won’t make a skillful sailor’. He surmised that every one of the people in the room had faced a storm and come through it. As he left the stage host Ben Jacobs wittily took pains to remind us that we had been

listening to Paul Floyd, as opposed to Pink Floyd. It got the best laugh of the evening. The whole tenure of the evening reflected that of the industry.

It was substantial and there were a lot of powerful people in the room. But the tenure was understated and mature.

The industry has suffered but the future is brighter and the infrastructure of whatever comes next in Dubai will be planned, bulldozed and built not only by the prizewinners, but by every guest in the room on that auspicious occasion.

“On behalf of my people in Jeddah, we are very delighted to receive this award. There are many projects right now, whoever visits Jeddah will see this very clearly”

MIDDLE EAST

JANUARY 2013

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bigprojectME.com

Iconic Structure of the Year ETIHAD TOWERS, HILL INTERNATIONAL The Etihad Towers represents a new benchmark in iconic developments across the Abu Dhabi skyline. This visually stunning landmark consists of five towers, bringing together residential, retail, hospitality and leisure facilities to create a unique ‘lifestyle’ development, enhancing the city’s growing reputation as a world-renowned business and resort destination.

Hill International was awarded the contract

by HH Sheikh Suroor Bin Mohammed Al Nahyan to bring his vision an inspirational, prestigious and desirable landmark which is unrivalled in scope and magnitude to life.

Raouf Ghali, President of Hill International Project Management Operations, told BPME how the award is seen by his company: “It’s recognition of the hard work and dedication of the entire team which starts with his highnesses vision for the whole project, the owners team for realising it and allowing and having faith in us to implement it.”

Civil Development Project Jeddah Municipality – His Excellency Dr Hani Mohammad Aburas, Mayor of Jeddah, on behalf of the Jeddah Municipality.

“To be involved in such a project from the start and to achieve such a high standard is fantastic. We build many high rise towers but we believe this is the most iconic and it makes a benchmark for the entire industry. This project also won the CMAA award in Chicago. It is recognition for Hill International that we are really very proud of.”

“First of all, on behalf of my people

to me. This is one of the projects

in Jeddah, we are very delighted

that I’m really proud of. Jeddah

today to receive this award

is undergoing a huge number of

because we have recently opened

projects. Jeddah is a workshop.

a huge project on the waterfront.

We have many projects on roads,

That project is the one we were

bridges, underpasses.”

nominated for, and won,” said

mixed-use communities. Early

Mayor of Jeddah.

next year, we will continue the

“This project for us is very

waterfront project because we

important because Jeddah is a

have now completed 4.5km, but

coastal city. Our asset is the sea

we have 13km of waterfront.

and we need to capitalise on that.

We are working on a project

This project is a destination now

called the remote city, and in

for the people of Jeddah. It’s very

addition to that we are working

important for us, because they

on environmental projects. There

spend their weekends, they spend

are many projects right now and

their vacations, they spend their

whoever visits Jeddah will see this

time there. Whatever makes my

very clearly. I am really proud of

people happy is very important

this. Alhamdulillah.”

MIDDLE EAST

32

“We have mega projects;

HE Dr Hani Mohammed Aburas,

JANUARY 2013

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bigprojectME.com

Developer of the Year Sorouh Real Estate Sorouh had an outstanding

Gurjit Singh, chief operating

2012, handing over a series of

officer, accepted the award: “As a

residential, retail and commercial

responsible developer here in the

projects. It is the asset manager of

UAE, we’ve always focused on the

a multi-billion dollar mixed asset

customer and our deliveries of the

class portfolio which boasts a gross

various developments have been

floor area of 20.2 million square

in relation to what the customer

feet and 10,300 residential units.

wants. So from the time the project

To date, Sorouh has ensured

delivered and managed, we have

management of 13 significant real

customer centricity at the forefront.”

estate developments in Abu Dhabi,

Best Water Conservation Project Dutco Balfour Beatty Ever since it was

Dutco Balfour Beatty,

to continue. When it

is conceptualised to when it’s

the successful delivery and

“In the coming years, we will

increasing the asset management

continue to focus on investment

base, improving capital formation,

property base and increasing

thus creating greater bottom line

our recurring income base and I

visibility of recurring income

think that’s a very important facet

in a challenging real estate

of giving concentration to our

environment.

stakeholders and shareholders.”

established in the late

talked about the Water

comes to sustainability,

1970s the company

Conservation Award:

everyone is a winner;

has set out to raise

“Well it’s recognition

it’s as simple as that.

awareness of green

of people’s efforts on

What we’re trying

issues and corporate

site and sustainability.

to do is conserve the

social responsibility

We’re launching a

planet to ensure the

within the UAE. DBB

sustainability drive in

next generation has

By any standards 2012 was a great year for

has proved yet again

DBB, as part of the

something to look

Whitney Morris, project engineer at Desimone.

that it is one of the

overall ethos of Balfour

forward to. We are

This month she won the ‘Young Engineer of the

industry’s leading

Beatty. We’ve been

looking outside the

Year’ award on behalf of her company.

sustainable companies.

implementing it and it’s

UAE as well, because

It has also been

nice to be awarded,

the Dubai market has

invaluable contributions to projects such as the

working relentlessly

and to get the message

come down a bit. But

Regent Emirates Pearl Hotel and the Al Hilal Bank

on a world class

across to everybody

during the recession

Tower, where she provided complex analysis and

programme of water

in the industry. It’s

we were the only

design of both buildings’ structures.

conservation.

definitely given us a

company working on

Wail A Farsakh –

boost and encourages

three projects in the

General Manager of

us to work harder and

UAE worth $2bn.”

Young Engineer of the year Whitney Morris, Desimone

In just two years Whitney has made

Speaking of the award she said: “I’m very humbled and I’m very grateful to be recognised this way. Hopefully I can keep doing more good work. It’s a nice pat on the back for sure because Iwe’ve have been working really hard. It’s nice to be recognised this way and it gives me more oomph to keep going.”

She feels lucky to have been recognised: “I think honestly it’s the exposure I’ve had to the projects out here. I’ve been really lucky with the type of buildings I’ve been able to work on”.

Earlier in the year on 20 August she also married Gorka Garbayo, a senior project engineer at Desimone.

She will be busy next year too: “Next year we’ve got lots of new stuff. Some multi-functional arenas, some food and beverage developments

34

MIDDLE EAST

and a big mosque.”

JANUARY 2013

Sustainable Solution of the Year

Contractor of

the Year SIX Construct

Unibeton Ready Mix

Six Construct has been fundamental in bringing This category rewards

Combined with

that we achieve

the first green hospital to the Middle East. The

those companies

Unibeton’s innovative

becomes a driver, a

construction of the Cleveland Clinic, on Sowwah

willing to go the extra

concrete-mix designs,

motivator for further

Island, represents a major challenge in terms

mile in supporting the

low carbon emission

improvement, that’s

of logistics and organisation, but it remains on

sustainable ambitions

products and green

how we look at it.

course for overall delivery in May 2013. Six

of projects in the

technologies, the

We found that the top

Construct is the general contractor and leader

region.

massive plant has the

management is very

in the building of the 364-bed world-class

capacity to fulfil the

supportive when it

hospital. With its 342 examination rooms, the

nominated this year

requirements of Phase

comes to sustainability

clinic will provide the latest medical technologies

all demonstrated

1, which needed a

development. This

in the fields of surgery, telemedicine and MRI

that the construction

colossal 1,500,000m3

is why we have a

imaging in this Middle East region, all in a

industry in the region

of concrete to pour

specific person like me

luxurious surrounding.

has some of the most

the walls of the port.

looking after this.”

forward-thinking

At the same time

The companies

partners in the world.

“We try to keep up

Patrice Thomas (pictured centre), business project support manager, accepted the award

Unibeton helped

with the market and

on behalf of Six Construct and told us about

ensure there was a

try to see what the

what the awards meant to him: “Six construct

environment-friendly

reduction of carbon

best practices are that

has been working in the UAE for more than

concrete production

emissions by 75%.

we can incorporate

45 years. We’ve been using all our resources

into the business.

and technicality and engineering to deliver our

Unibeton’s

facility in Qatar is

Dr Huiqing HE,

dedicated to the

deputy operations

Any achievement or

projects on time. It’s a good recognition of the

manufacture and

director, Sustainability,

recognition, we’re

work that we’ve delivered.”

supply of ‘green’

(pictured top right)

quite proud of it, but at

“We don’t just look at the UAE we also

concrete to Phase 1

accepted the award

the same time, we look

explore opportunities in Kuwait, Qatar, Saudi

of the massive New

on behalf of Unibeton:

to see what we can do

and in Abu Dhabi as well. We have a portfolio

Doha Port Project.

“I think every award

better.”

of projects in buildings but also in marine projects where we have specialised for more

Quantity Surveyor Department of Transport, Abu Dhabi This award was won by the

achieve and successfully deliver its

Department of Transport Abu

infrastructure projects in a timely

Dhabi, an organisation driving the

and high quality fashion.

projects. We will consolidate our projects in the coming year.”

Ihab Al Khatib, consultant to

the region. This award winner has

the procurement and contracting

shown over the past decade that it

division with the DoT accepted the

is possible to manage complicated

award on behalf of the department:

infrastructure challenges, while

“This award makes us proud

delivering tangible improvements

as we’re still a little bit of a new

to the lives of those that live within

organisation. We were established

its area. The DoT of Abu Dhabi

in 2006 and we have the second

is considered one of the major

largest budget in Abu Dhabi. We’re

infrastructure developers in the

proud that we’ve never received

region and is opening up the

any claims related to measurement

construction market in Abu Dhabi.

or quantity surveying. We’ve

This has been made possible by

established a good partnership with

the creation of a sound commercial

all our contractors and suppliers.

and contractual entity to facilitate

This award will be motivation for us

the DoT’s works and enable it to

to excel in the future.”

JANUARY 2013

MIDDLE EAST

field of infrastructure forward in

than a hundred years, as well as industrial

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bigprojectME.com

Consultant of the year Hyder Consulting Hyder Consulting may be one of the oldest recipients of a Big Project award - the company can trace it roots back more than 150 years in Europe. During that time it has worked on some of the world’s most iconic buildings and structures, including Sydney Harbour Bridge, Tower Bridge in London, and the Burj Khalifa in Dubai.

Ian Dawson, Technical Director at Hyder, received the award on behalf of the consultancy. He explains some of the challenges they face: “We are 4500 people around the world, and we’re expanding but in a conservative way. Some of our competitors have gone a bit crazy and have suffered in that respect. We’re one of the oldest consultancy firms in the world, 1894 I think we started, so we’re traditional, blue chip consultancy.”

The Dubai office of Hyder was pleased to be recognised: “For the ME this is a great win for us. The market has been stressed over the last few years and we have a business plan in

Outstanding Development of the Year Damac Properties

place to expand in the region. Saudi, Oman, Jordan, Kuwait, these markets. And Qatar is

This award for Outstanding

is one of our first projects in Saudi

a big opportunity for us at the moment and of

Development of the Year is given

Arabia. To work so closely on that

course so is UAE.”

to organisations and companies

and see that come to fruition is

that have taken on large scale

great.”

projects and won. This year’s

of challenges for the design and

demonstrated an astounding

construction of the high-rise tower.

ability to deliver world class

Damac had to work around a

projects on time, and to the

coral base and a high water table.

highest standards possible.

Damac’s Al Jawharah project on the Jeddah Corniche in the Kingdom of Saudi Arabia will

Al Jawharah is the height

will also be one of the tallest

afford an apartment on the top

developments in Saudi Arabia’s

ten floors, you’ll be treated to a

expanding cosmopolitan ocean-

Versace designed home interior,

front city.

and each one comes with a room

of Damac Properties, was delighted with the award.

“It’s the pinnacle of a lot

MIDDLE EAST

support the project. of sophistication. If you can

above, left), senior vice president

JANUARY 2013

This necessitated the inclusion of a 2.6 metre raft foundation to

be a spectacular landmark. It

Niall McLoughlin (pictured

36

Its location created a number

award winner Damac has

for your family’s chauffeur.

McLoughlin says that he is optimistic.

“Without getting carried away, I think the phrase is ‘cautious

of hard work from so many

optimism’. There’s a better feeling

people over so many years. And

today than there was the year

especially for Al Jawharah, which

before, so watch this space.”

Construction Machinery Middle East magazine’s Brand of the Year Volvo Construction Equipment Heavy equipment is an essential

what it means to us, it’s hugely

part of the construction industry,

satisfying to have built our business

and often the unsung hero

and the Volvo brand up over so

of projects. The Construction

many years. It’s good that the

Machinery, Middle East, Brand

investments FAMCO has made in

of the year was won by Volvo

the dealer network, are recognised

Construction Equipment.

by the industry in this way.”

The award caps a remarkable

“We always try to be a partner

year for Volvo, which began

to our clients, we’re not really

with it bringing the Volvo Ocean

interested in just moving the

Race to Abu Dhabi. It played a

metal. It’s really about supplying

crucial role in facilitating Famco’s

the right equipment to the right

acquisition of Saudi distributor

application, and ensuring that

Al-Rehab.

the fleet operators are supported

Deliverer of the night’s

throughout the life cycle of the

Project Manager of the Year Khaled Zaghloul, RW Armstrong

welcoming industry speech, Paul

equipment. That’s a philosophy

Floyd, MD of Famco, explains:

that comes right through from the

“There’s been a partnership

manufacturer, from Volvo, through

This award was collected on Khaled’s behalf

since the mid-1990s when Volvo

the dealership, and hopefully the

by Laurent Haddad, a senior architect at RW

construction equipment and

end user reaps the benefits of that

Armstrong.

FAMCO joined forces. So to ask

philosophy.”

The award recognised that Khaled has demonstrated an in-depth knowledge of

MEP Contractor of the Year

construction techniques and superb knowledge of the dark arts of strategic project planning and cost programming. He also has a passion for his work, an extraordinary attention to detail and a commitment to quality. All

Emirates Trading Agency

attributes essential in project delivery.

While it’s easy to be

to contribute its

Senior Executive

fixated on what a

construction expertise

Director at ETA,

guy, a calm guy. Masdar is recognised around

building looks like

to major landmark

accepted the MEP

the world as being a leader in sustainability,

from the outside, this

developments. ETA

Contractor of the Year

and he is leader of the project, that’s why he’s

award recognises

is expanding to

award: “Basically, it

being recognised for this award. Masdar is

those that make

other countries in

feels good to have

now coming online, everything we’ve been

sure the heart of the

the MENA region

somebody appreciate

working towards is coming to an end and it’s

building is always

and India, with two

what we’ve done. We

the right time for the recognition to come.”

beating.

billion dirhams worth

can proudly say that

of projects in the

we started from small

Director of choice for government, commercial,

Agency beat off some

Kingdom of Saudi

beginnings 34 years

hospitality, residential and corporate clients, by

stiff competition to

Arabia and Qatar

back, and today

his company RW Armstrong. With more than

win, but has proven

including the King

we’re the biggest over

23 years of experience Khaled has overseen

itself again and

Abdullah Financial

here. We’ve done the

the development of several projects with total

again on a series

District, the Hilton

electro-mechanical

construction costs in excess of 9.5 billion

of contracts in the

Hotel in Riyadh,

work for a number

dirhams. Specialising in world class projects,

UAE. ETA has been

the Downtown

properties, including

he has been instrumental in the construction of

an integral part

Doha Msheireb

the Burj Khalifa, the

high rise residential towers and luxury hotels in

of the growth and

Development.

Metro or most of the

Egypt, Libya, South Africa and the United Arab

development of UAE and is continuing

AK Agarwal (pictured centre),

Khaled has been described as the Technical

airport. So we’re

Emirates. Some of recent work includes First

proud of it.”

Shams, Abu Dhabi.

JANUARY 2013

MIDDLE EAST

Emirates Trading

Laurent described Khaled: “He’s a fantastic

37

bigprojectME.com

Architect of the Year David Ardill, Sheppard Robson International

Energy Efficiency Project of the Year Siemens Recieving the award

designed from the

Europe, spearheading

If there is one place on the planet which has

for Siemens was Kay

inside out. Led by the

the development of the

extremely high standards of architecture, it is

Zwingenberger (left).

ambition to achieve

Siemens Healthcare

the UAE. David Ardill (pictured centre) doesn’t

He explained why the

efficiency, rather than

sector in Ukraine

just construct pretty buildings though, he is

award is important

a predetermined

and heading up the

designing for the future.

to Siemens: “It’s a

aesthetic, the

Healthcare sector for

David is the mastermind behind Siemen’s

big honour for us

resulting building is

Siemens in Russia.

headquarters at Masdar City. He designed the

to receive this and

both commercially

During his three-year

building’s unique ‘box within a box’ envelope:

it’s a good result for

successful and

tenure in Russia,

an inner highly-insulated, airtight facade

our new partners.

environmentally

Siemen’s volume

designed to reduce thermal conductivity. This

I feel honoured to

sound: a truly

trebled, on the back

works in tandem with a lightweight aluminium

be amongst such

sustainable solution.”

of several large-scale

external shading system, to minimise solar

nominees in this

Zwingenberger

gain while maximising daylight and views

category, I feel very

commented: “We’re

was subsequently

from the building.

proud that we won.

looking forward to

appointed CEO

Siemens’ AED170m

moving into our new

for Central Asia

because it’s the first project we’ve completed in

headquarters in

building for which we

with responsibility

the Middle East, well, almost completed, it’s not

Masdar City, Abu

received the award

for Kazakhstan,

entirely finished and it’s a big step for us. To

Dhabi is nearing

today.”

Kyrgyzstan, Tajikistan,

come out here and win an award for our first

completion and

project, that’s a big deal for us.”

well on its way to

first joined Siemens

Turkmenistan. Based

achieving LEED

in 1992 and gained

in Kazakhstan, he

sustainability front, that’s our focus, and to see

Platinum status.

valuable management

oversaw continuous

where we can take that with our new clients.”

Siemens Middle East

experience for the

growth against difficult

Headquarters was

company throughout

economic conditions.

He explained: “It’s very significant to us

His focus now is clear: “Pushing the

Since joining the practice six years ago,

Zwingenberger

contract wins. He

Uzbekistan and

Ardill has been instrumental in the continued success of the UK and Abu Dhabi-based practice, and his remarkable work was recently recognised by Sheppard Robson, with his elevation to the status of Partner. He explained how he won the award: “Very, very, very long hours.”

Green Building Project

of the Year RW Armstrong RW Armstrong won the Green

honour to work with Masdar and

Building Project of the Year for

win this award for a great project.

its excellent work at the Masdar

It’s a fantastic achievement, it’s

Institute of Science & Technology,

great that all the hard work and

the centrepiece of Masdar

the hours and discipline it takes to

City. Masdar is one of the most

get a project like this completed is

sustainable and low-carbon

recognised by someone, and that

cities in the world. Designed and

we can deliver at least some of the

constructed according to a strict

work.”

sustainability approach, the Masdar

commitment to sustainability. We

many sustainable buildings and

can see the result of our work.

rating systems in the region. The

Many of the phases are being

Masdar Institute is the shape of

handed over and we are happy

things of things to come.

that the projects are ready – at least

MIDDLE EAST

Antonio Ceci, Sustainability

38

JANUARY 2013

“This is for our continued

Institute serves as an example for

some of the work – there’s a lot

and Permitting Manager at the

more to go but we are completing

company, explained: “It’s a great

this phase at least.”

ON SITE

bigprojectME.com

Here for Good Project Name

Standard Chartered Towers

Location

Dubai, UAE

Status

Under construction

Building type

Commercial

Construction cost

$50 million

Big Project ME tours the new Standard Chartered headquarters in Dubai and gets a first-hand look at a building that is striving to become a benchmark for green design in the GCC

A

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MIDDLE EAST

t first glance, the new Standard Chartered headquarters in Dubai isn’t the most attention grabbing of buildings, but given that it is adjacent to the world’s tallest building, that was something it was always going to struggle with. However, once you get into the building, it becomes immediately apparent that the 18-storey building (ground, four podiums, thirteen office floors and one mechanical floor) is very different from most office buildings in Dubai, if not the entire Middle East.

For starters, the building, which was constructed and fitted out by Brookfield Multiplex, has been designed

by Standard Chartered and architects Arif & Binotak with the concept of ‘agile working’ in mind.

Andrew Philips, project manager for the site, explains that the interiors of the building have been explicitly designed to allow workers to be more efficient and productive. They will also be kept in a comfortable, sustainable and green-friendly environment.

“Because there are so many people in the bank who aren’t actually there (on a day-to-day basis), there aren’t permanent

JANUARY 2013

ON SITE

“Because you’re saving on space requirements, you’re saving on costs.

It has an impact on design and on everything”

energy efficiency from that. With the way the glass is set out, 90% of the occupied spaces receive daylight.

There are daylight sensors linked to all the lights. So when it’s sunny, as it would be 345 days of the year here, those lights won’t turn on. If it’s an overcast day, they’d just turn on the right amount, so you haven’t got them on full and people get whatever light is needed at their desk,” Alabbar explains.

In addition, the building has installed extremely efficient water fittings which help reduce the water consumption in the building to 48% below US baselines.

Alabbar adds that it was a conscious decision to work to US specifications as they are more stringent than UAE baselines.

“On top of that, all of the water that comes out of taps, because that water is still fairly good quality water, it’s not discharged as sewage. It gets treated through a grey water treatment system, and then all that water is used for flushing,” he says.

n Division Construction + Development n Construction value USD$50m n Client Gulf Resources Development & Investment LLC n Contract Type Design and Construct n Consultants Shell & Core Architects, MEP and Structural Consultants: Arif & Bintoak n Facade Concept KPF New York n Fit-out design for Standard Chartered floors Foreman Roberts n Interior Design Carey Jones n Description 50,296.83sqm built-up area (total construction area); 5,412sqm site area; 18 storeys (Levels 10-17 bank fitout by Brookfield Multiplex).

JANUARY 2013

MIDDLE EAST

desks. If you walk around, you’ll see that there are no drawers in the desk, but everyone gets an individual locker.

It’s called agile working and a lot of big companies in the UK are doing it at the moment, it’s meant to promote a more efficient workplace,” he says.

“I don’t know if it’s the first in Dubai, but it’s definitely one of the first,” he continues. “Because you’re saving on space requirements, you’re saving on costs. It has an impact on design and on everything.”

Saeed Al Aabar, a director at AESG, whose firm works with Brookfield Multiplex to achieve a LEED Platinum rating for the project, adds that there had been a number of sustainable measures introduced into the building, especially in regards to water conservation and energy efficiency.

“One of the big drivers for Standard Chartered, with a lot of people working in the building, is that their costs are driven by their staff. So there are a lot of features in here that allow people to work more efficiently, with less sick days,” says Alabbar as he and Philips take Big Project ME on a tour of the headquarters.

“For example, the flooring is green labelled certified, the paints are low VOC, so there’s a very low level of chemicals in all of this. All of this relates to data that shows that you get a lot less sick days (from employees). So they’re able to increase the company’s efficiencies.”

Furthermore, the building incorporates a sophisticated set of systems to ensure that energy wastage is kept to a minimum, with even the glass used in the windows chosen for its high performance and ability to conserve wastage.

“The glass has got a UV value of 1.5, which is very high end. There’s a lot of

41

ON SITE

bigprojectME.com

details and that’s where AESG have been brilliant. We built a lot of the structure at night so there were no issues (with noise and logistic complaints in the crowded Burj Khalifa/Emaar Square area). They’ve been planning this for a number of years and they’ve allowed for expansion as well.

They knew they wanted breakout zones on a certain percentage of every floor.

They’ve been designing it for a very long time and making it all fit, so for us, it was easy actually building it,” Phillips explains.

However, this commitment has meant that there has been additional responsibility for Philips and his team, with the contractor having to install a BMS

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MIDDLE EAST

One method incorporated into the building was for cooling down fresh air coming into the building, which served the dual purpose of cooling down the interiors, while ensuring fresh air for people in the building, Alabbar said.

“As you can imagine, particularly during the summer, you could be introducing fresh air that’s 50°, and that takes a lot of energy to cool down, particularly if you want to provide a lot of fresh air for the health and well being of your occupants,” he explains.

“Actually, all the exhaust air that has to be ventilated out of the building passes over that fresh air, though they don’t actually make contact. But through a sort of heat exchanger, the fresh air that is coming into the building is already precooled. So rather than introducing 50° air, it can be reduced to 30°-35° before being introduced into the building. And that’s free cooling basically.”

While achieving LEED Platinum status is the ultimate aim, the building has so far been certified as LEED Gold, though both Alabbar and Philip are certain that further improvements will be made to achieved their coveted rating. Brookfield Multiplex has worked on a number of projects around Dubai, but the building is the first one they’ve had complete control over, right from construction to fit out.

Despite completing similar projects in Australia and the UK, working in Dubai brought its own set of challenges.

“It’s actually not that hard if you do all your planning up front. The devil is in the

JANUARY 2013

“During the summer, you could be introducing air that’s 50°, that takes a lot of energy to cool down, particularly if you want to provide a lot of fresh air”

With the workforce on the project reaching up to 750 construction labourers at the peak of the project, project manager Andrew Philips says that given the rapid pace of development (the project averaged a slab rate of five day cycles), it was important to run the projects according to the highest standards, in this case Australian and UK, to ensure absolute onsite safety.

“Everyone must be inducted before they start, there’s no work without risk assessments, tool box talks are mandatory for all work on site and basically we follow the UK and Australian rules. That way, we’re way ahead of the standards here,” he says.

system, as well as turnkey systems and all the cabling and wiring, in the building.

In addition, both BM and AESG will be in charge of testing and commissioning of all the systems in the building, which is a rigorous and time consuming process.

“There were requirements to make sure that the building didn’t leak, and also on the ductwork. There’s a fairly rigorous process to inspecting all of that through to the testing and commissioning phase, to make sure there are no leakages,” says Alabbar. “For the commissioning phase, everything was checked to see if the airflow was through the grills, is the airflow where it’s supposed to be, if it’s not, then you can tell that something has not been programmed right or there’s a leakage in the ducts or something like that.”

Phillips concludes: “That’s all rigorously tested because that’s an area, particularly in this part of the world, where efficiencies are lost,” he points out. “Because things were planned and inspected so well throughout; once you get to the testing phase, it becomes more of a procedure. There are things that are picked up and resolved, but luckily it’s all just small very easy fixes.” n

SPECIAL FEATURE Finance

bigprojectME.com

Building on

Islamic finance

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MIDDLE EAST

Islamic financing may be in its infancy but it could possibly open up a wealth of projects in the GCC JANUARY 2013

SPECIAL FEATRURE Finance

D

“Success will be defined in the core markets through the transformation of Islamic banks so they are able to compete for conventional customers”

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

JANUARY 2013

MIDDLE EAST

IF IN DIFC Lorem ipsum dolor sit amet, consectetur adipiscing elit

amascus is reputedly the longest inhabited city on Earth, with 4,000 years or so of continuous human habitation. Yet even back then someone had to pay for it.

Project finance is difficult and based on future achievement, rather than a solid asset base. Imagine definitely knowing the winner of the first Meydan horse race, but having the information before the racecourse is built. You will almost certainly profit, but not for a while.

Certain projects are more popular than others, in finance terms. According to a recent Financial Times article, project loans to build power stations, wind turbines and bridges are particularly unattractive because of their size, tenor and illiquidity. If a project stalls the

potential to become the owner of 90,000 propellers on a wind farm in the Shetlands is less than appetising to a banker.

On the other hand, certain sites, such as Battersea Power Station and Centre Point in London, have remained undeveloped for decades. It doesn’t matter for two crucial reasons, one is that central urban land, developed or not, rises in value anyway. Secondly, as long as banks have tenure, land is an asset, whereas defaulting loans are a liability.

As Dubai will testify, projects stall on a regular basis. The Palm Jebel Ali and the World are both testaments to the ability of the human race to miscalculate. Ironically for Dubai, the World has become the world’s biggest example of a stalled project. But crucially, there is inherent basic land value.

Recently, the fun-loving Swiss decided that the idea of people who don’t own money, giving it to people who can’t pay it back, is no longer tenable as a system.

The result of this is Basel III (or the Third Basel Accord). Although it makes sense on a global scale the short-term effect is that more projects will be competing for fewer funds.

Essentially the accord seeks to ensure that banks have a minimum liquidity level and can’t go bust. It seeks to implement a series of minimum requirements to ensure the strength of the banking system. Members of the accord include Australia, Canada, China, Hong Kong SAR, India, Japan, Mexico, Saudi Arabia, Singapore, South Africa and Switzerland.

Argentina, Brazil, the European Union, Indonesia, Korea, Russia, Turkey and the US – are also working towards final versions as quickly as possible.

Stefan Ingves, chairman of the Basel Committee and governor of the Sveriges Riksbank, said: “While some jurisdictions have not been able to meet the planned start date, a large number

45

SPECIAL FEATURE Finance

will be ready to begin introducing the new capital requirements as planned on 1 January 2013.”

Power follows money, which Dubai has. So any realistic developer will realise quickly that, within a short time, Dubai will become a financial centre and the Eurozone will become a desert.

Ironic really.

There is a saying in Europe that banks will lend you an umbrella but take it back when it starts to rain. Much of the European banking system is based on the assets that a bank can reclaim if the company they are lending to gets in trouble. One of the main reasons that the Japanese economy did so well is that Japanese banks took a longer view on loans. It will now become harder for banks to lend money to certain

bigprojectME.com

“There is no truly fully fledged Islamic bank that stretches across international markets or even regional market” projects and make large long-term loans harder to hold on banks’ balance sheets, according to several senior bank executives in the US and Europe.

Long-term government-backed infrastructures will continue to be based on public private partnerships (PPP).

One Kuwait company built a power station for the Egyptian Government.

No money changed hands, but the government agreed to buy electricity at a fixed price over a period of twenty years.

At the end of that period the engineering

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MIDDLE EAST

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JANUARY 2013

company will hand over the installation to the government. But finance needs to be found for the more ethereal projects that do not constitute infrastructure. Enter Islamic Finance.

It has to be said that for a considerable time this form of finance was a bit like green initiatives in the Middle East, worthy and developing, but not taken seriously as a mainstream solution.

Now that has changed and Islamic solutions are being considered much earlier in the financing decision process.

SPECIAL FEATURE FINANCE

Bahrain-based regulatory institution that sets standards for the global industry, said that 85% of Sukuk, or Islamic bonds, were un-Islamic.

Consultancy Ernst & Young has just released a report pointing to a future explosion of banks offering Islamic finance. “Success will be defined in the core markets through the transformation of Islamic banks so they are able to compete with the much bigger, conventional boys for mainstream customers,” said Ashar Nazim, Islamic financial services leader at Ernst & Young.

“There is no truly fully fledged Islamic bank that stretches across international markets or even regional markets,” Nazim said. “It is a lopsided industry at this point, only 13 Islamic banks have $1 billion or more in equity,” adding that the difference between small and large Islamic banks will widen.

At this point we must of course draw attention to the spate of announcements made by the Dubai authorities to the future crowded urbanisation of the city.

It is almost certain the application of Islamic finance to this development will be crucial.

In theory, Islamic finance sounds like a great idea. You create partnerships based on mutual risk and reward, rather than the European model of debt based transaction.

At the moment, we are in an interesting transitional phase. We have an explosion of local project announcements combined with a sharp decrease in traditional western funding solutions. We have a strongly developing funding solution which is developing, and it is morally and socially more acceptable than profit based solutions.

Soon the great order of projects can be restored. And we can get back to the old system where developers spend most of their time reading Bentley brochures and consultants can spend their time actually buying Bentleys. n

So why isn’t more banking Islamic?

It all comes down to profit really.

Essentially Islamic law forbids profit or risk taking. On the face of it not a lot of room to develop products essentially based on those two principles. Man, however, is never as ingenious as when circumventing non-negotiable rules and there are certain parts of the strictures which allow a degree of latitude.

Paul Jarvis, Partner of Banking & Finance for SR Denton law practice in Abu Dhabi points out that a strategic use of mixed financing between conventional and Islamic methods could be used. He says, that mixing ethical and commercial funding has potential pitfalls and must be agreed and scrutinised carefully for it to work.

Because Islam forbids simply lending out money at interest (see riba), Islamic rules on transactions (known as Fiqh alMuamalat) have been created to prevent this perceived evil. The basic principle of Islamic banking is based on risk-sharing which is a component of trade rather than risk-transfer which we see in the conventional banking. Shari’ah expressly forbids parties from entering a transaction with uncertainty, also known as gharar.

Rice University Professor, Mahmoud Amin El-Gamal gives a good example of how to comply with the principle of gharar: Prohibition of gharar pertains to a person paying a fixed price for whatever a diver may catch on his next dive. In this case, he does not know what he is paying for.

On the other hand, paying a fixed price to hire the diver for a fixed period of time is permitted. Transactions can often avoid gharar by being specific and defining what the exchange is taking place.

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JANUARY 2013

MIDDLE EAST

Islamic finance is expected to make up 30% of the total project finance market in the Gulf Co-operation Council, or GCC, countries by 2012, compared to just over 12.5% in 2006, according to the latest estimates.

Shariah-compliant assets reached about $400 billion throughout the world in 2009, according to Standard & Poor’s Ratings Services, and the potential market is $4 trillion.

Islamic banking has the same purpose as conventional banking: to make money for the banking institute by lending out capital. But that is not the sole purpose. Adherence to Islamic law and ensuring fair play is also at the core of Islamic banking.

As nearly a third of the available finance is going to come from this source, a group of experts has gathered to decide what it actually constitutes.

Where does Islamic financing come from? Largely from conventional banks.

A conventional financial institution or bank opens an ‘Islamic window’ on its premises, introduces an investment product marketed as ‘Islamic’, such as a fund, or sets up a private Islamic bank or company. This is the subject of the present discussion.

Some scholars believe that this is not permissible, because conventional financial institutions do not comply, in the first place, with the sharia in terms of their incorporation and statutes. If they do not comply with Islamic law in their basic charters, how can they claim to comply with it in their funds, branches, or windows?

Qatar has recently decreed that Islamic finance can only come from Islamic banks. One of the main problems is the actual application of the principles. In 2009 Sheikh Muhammad Taqi Usmani, of the Accounting and Auditing Organisation for Islamic Finance Institutions (AAOIFI), a

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COMMENT development

bigprojectME.com

Mohamad Rabih Itani

Why real estate development companies fail Real estate development could really be the secret of a sustainable future for the construction industry in the region. Mohamad Rabih Itani, VP Marketing, Injaz Development Company looks at the challenges ahead

T

he challenges affecting the real estate industry are well-known particularly in light of the recent global economic downturn. Real estate development is no simple business. It is a complex and highly demanding venture that involves numerous and evolving challenges. In any given project, a real estate developer could be managing investments worth hundreds of millions and even billions of Saudi Riyals. The financial aspect alone already raises to stratospheric heights the stakes in many real estate projects. On the other hand, real estate developers also carry the burden of having to satisfy the very high expectations of investors and the society in general. Real estate developers do not just build structures; they create properties where people can live, work, play, relax.

Real estate development is an exciting venture if you know what you are doing.

The concept of real estate development is relatively new in the GCC. In fact, the private sector has only been actively involved in real estate development in the region in the past two decades. The GCC was certainly a late bloomer as far as real estate is concerned: it was only in 1998 or a bit earlier that we started to see a surge in the number of real estate developers in the UAE, Qatar, Kuwait and KSA. And by real estate development, I don’t mean just building homes, shops or offices; it is more about that effective use of the three pillars

of success in real estate development: finance, engineering and marketing.

During the past decade, we have witnessed the rise and fall of big names in the real estate business. There were huge gains reaching billions of Riyals, but there were also significant losses especially with the decline in real estate activity following the global crisis. To be sure, I assert that the crisis was not the fundamental cause of most failures. This is especially true considering that there has always been a considerable demand with little supply.

So why did big real estate companies fail in Kuwait, UAE, Qatar and KSA? There are reasons for these failures, which affect developers regardless of the size of the market or economic situation.

Loss of credibility The success of a real estate developer is built on credibility. A developer therefore has to be more transparent with its internal and external activities, particularly when dealing with customers, strategic partners

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Absence of vision Real estate development is a long-term venture. Any project can take anywhere between two to seven years to complete.

Sometimes, even more. The developer should have a vision and not just a set of objectives to be accomplished.

Unfortunately, in the Arab world many developers lack the vision and most work to maximise their profit in the short run.

Absence of product/project I believe many will agree with me on this one. It certainly makes sense that without a product or project, a company cannot exist. Well, in many cases in the region, the exact opposite has happened. Or at least many companies tried to get away with it. If there is no product, there should be no development. Period. Unfortunately, some Gulf developers have announced

“project development used to be a trial and error exercise. Developers skirted the usual process that would have helped avoid mistakes and poor construction�

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

48

and employees. Failure to maintain the trust and confidence where the developer operates surely lead to its ultimate decline.

COMMENT development

billions of Riyals worth of projects in the past ten years but I believe that only 10% of these projects were ever delivered. There is no reason for a real estate development company to exist if it doesn’t have projects.

Copy and Paste There is this impression that the Arab world is a copier and not an innovator of products or services. This may be particularly true in the real estate sector.

A developer is someone who should be able to take risks and work into transforming the lifestyle of people, creating neighborhoods that will be relevant for many decades. A developer must therefore figure out how a certain city will evolve within the next 5, 10 or 15 years, and how real estate projects will fit into this transformation. Where is this happening in the Arab world? Except for a couple of big developers in the GCC, I see most of the developers as copiers.

Copying project will not sustain a real estate developer. Innovation is a must.

Over promising A lot of real estate developers promise to build projects they couldn’t execute.

This only places their company in an

embarrassing situation in their bid to score short-term points. One important factor for the success of a real estate developer is its ability to deliver what it has promised. Over promising is surely deadly.

Not having the right people Even though this is true to all types of businesses, I believe it is even more pronounced in real estate development.

Not having people with the right expertise and experience, and who share the company’s vision, will only lead to the company’s failure.

Poor quality products In the GCC, project development used to be a trial and error exercise. Developers skirted the usual process that would have helped avoid design mistakes and poorquality construction. With the boom, they couldn’t wait. They just have to go full speed. In a lot of these cases, we have seen poor-quality projects, wrong designs, and wrong projects. Surely, some companies have disappeared from the market, especially in Saudi Arabia, because

they were too quick to cash in on the boom without bothering to build on the fundamentals of real estate development.

Absence of social responsibility Development is about building lifestyles, establishing communities, bringing people together, creating neighborhoods.

This is not achieved with just bricks and stones. A real estate developer needs to communicate to people – not to an inanimate business institution. These are people who will buy and use their properties for decades. These are the people who will talk about you and refer to you buyers. Since real estate companies need to develop and build strong social responsibility programmes.

The Arab market is a relatively small market; as we say, everybody knows everybody. This is why a good start is the perfect start for any business to achieve success and growth. But are real estate developers ready to take the necessary steps to avoid failure? I am hopeful that they have learned their lesson well.

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

JANUARY 2013

MIDDLE EAST

Failure to deliver Economy is built on supply and demand.

If there is a need in the market, supply should come. The Saudi real estate market is based on demand, which currently exceeds supply by up to ten times. In the UAE, developers supplied the market with real estate products that mainly targeted foreigners. But what happens when supply does not meet the financial capacity and preferences of the demand? Developers will fail. A developer is not required to come out with extraordinary projects that are hard to sell. It only needs to satisfy the demands of the market. Even a single bungled project can have devastating effects, causing the closure of the company.

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TOP TENDERS Project name: Bausher Multipurpose Project

Budget $174,000,000 Client Public Authority for Social Insurance (Taminat) - Oman Region Oman

Budget $74,000,000

PROJECT NAME: Combined-Cycle Power Plant Project - Jizan Economic CitY

Budget $2,000,000,000

Client Ministry of Health (Saudi Arabia)

Client Saudi Arabian Oil Company (Saudi Aramco) Region Saudi Arabia

Region Saudi Arabia Description Construction of a proton therapy center at King Fahad Medical City.

Status Current Project

Description Engineering, Procurement and Construction (EPC) contract to build an integrated gasification combined-cycle (IGCC) power plant with capacity of 2,400 MW in Jizan Economic City.

Status New Tender

Project name:Lower Fars Reservoir Development Project - Phase 1

Status Current Project

Project name: Tourist Resort Project - Al-Zorah Development (Phase 1)

Budget $4,000,000,000 Client Al-Zorah Development Compnay Ltd P.S.C (Ajman)

Region Northern Emirates Description Construction of a tourist resort comprising a five-star hotel consisting of (154) rooms, including a theme park and golf course, private suites and villas, in addition to four restaurants and a spa.

Status New Tender

Budget $7,000,000,000 Client Kuwait Oil Company (KOC) Region Kuwait Description Development of Lower Fars Reservoir.

Status New Tender

JANUARY 2013

MIDDLE EAST

Project name: XProton Therapy Center Project - King Fahad Medical City

Description Development of a multipurpose project comprising (11) mixed-use commercial, residential and administrative buildings, including associated facilities in the Wilayat of Bausher.

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TENDERS

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MIDDLE EAST TENDERS Provided by Tel +9712-6348495 Web www.MiddleEastTenders.com Email sales@MiddleEastTenders.com

Saudi Arabia Towers Construction Project-95

Project Number MPP2723-SA Territory Saudi Arabia Client Name Rayadah Investment Company (Saudi Arabia) City Riyadh 11564 Postal/Zip Code 56850 Country Saudi Arabia Phone (+966-1) 205 9911 Fax (+966-1) 205 9922 Email info@raid.com.sa Website www.raid.com.sa Description Construction of (3 Nos.) towers, retail units and related service facilities with a total built-up area of 268,383m2.

Status New Tender Remarks This project will be located on King Fahd Road in Assahafa District of North Riyadh in Saudi Arabia. It will be adjacent to proposed Burj Rafal Tower and will cover a total site area of 30,000m2.

Tender Categories Leisure & Entertainment, Prestige Buildings Tender Products High-rise Towers, Retail Developments

Al Bayt 57 Mixed-use Development

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MIDDLE EAST

Project Number ZPR886-SA Territory Saudi Arabia

JANUARY 2013

Client Name Al Bayt Development Company (Saudi Arabia) Address Khorais Road City Riyadh 92151 Country Saudi Arabia Phone (+966-1) 212 2222 Fax (+966-1) 212 3333 Email info@al-bayt.net Website www.al-bayt.net Description Development of Al Bayt 57 mixed-use scheme comprising (9 Nos.) 22-storey towers, including a branded 5-star hotel, (1,500 Nos.) two, three and four-bedroom apartments as well as penthouses, Grade A commercial office space and a Galleria retail mall covering 25,000m2.

Period 2015 Status New Tender Remarks This project will be located along King Saud Road, in close proximity to Al-Khobar’s picturesque waterfront promenade in Saudi Arabia and occupy a prime site area of 40,000m2 with a gross floor area of approximately 500,000m2. UAEbased Dewan Architects & Engineers has been awarded a contract to design this project.

Design Consultant Dewan Architects & Engineers (Saudi Arabia) Tender Categories Construction & Contracting, Hotels, Leisure, Prestige Buildings Tender Products Commercial Buildings, High-rise Towers, Hotel Construction, Residential Buildings, Retail Developments

Proton Therapy Center Project - King Fahad Medical City

Project Number ZPR824-SA Territory Saudi Arabia Client Name Ministry of Health (Saudi Arabia) Address Old Airport Road City Riyadh 11176 Postal/Zip Code 21217 Country Saudi Arabia Phone (+966-1) 401 5292/ 401 2220/ 401 5555 Ext. 1277 Fax (+966-1) 402 6944/402 9876 Email info@moh.gov.sa Website www.moh.gov.sa Description Construction of a proton therapy center at King Fahad Medical City.

Budget $74,000,000 Period 2014 Status Current Project Remarks This project is in Riyadh. It will be the first proton therapy center in the Gulf region. Construction will commence later this year, with the proton therapy center along with the central services building scheduled for completion within (18) months to allow installation and commissioning of the equipment.

Main Contractor Al Habtoor Leighton Group (Saudi Arabia) Main Contractor (2) Al Latifia Trading & Contracting Company (Saudi Arabia) Tender Categories Construction

& Contracting, Medical & Healthcare Tender Products Hospital Construction

Kuwait Wafra Seef Development Project

Project Number OPR581-K Territory Kuwait Client Name Wafra Real Estate (Kuwait) Address Sharq - Wafra Real Estate Bldg., Ahmed Al Jaber Street City Safat 13137 Postal/Zip Code 27635 Country Kuwait Phone (+965) 2241 1273 Fax (+965) 2243 5999 Website www.wafra-kuwait.com Description Development of Wafra Seef scheme comprising a new food and entertainment destination offering patrons a gathering place where they can dine, meet and mingle, while enjoying the breathtaking views of the Arabian coastline.

Status New Tender Remarks This project will be located along the coastline of Al Mahboula Area, just south of Kuwait City and cover an area of 5,760m2.

Design Consultant Gensler Tender Categories Construction

TENDERS

Qatar Solar Energy Power Project

Project Number OPR574-Q Territory Qatar Client Name Qatar General Electricity & Water Corporation (Kahramaa) Address Corniche Street, Number 61, Sheraton Roundabout, Dafna Area City Doha Postal/Zip Code 41 Country Qatar Phone (+974) 4484 5484/ 4484 5555 Fax (+974) 4484 5496 Email contactus@km.com.qa Website www.km.com.qa Description Engineering, procurement and construction (EPC) contract for the implementation of a solar energy power scheme with capacity of 200 MW. Budget $30,000,000 Period 2020 Status New Tender Remarks This project will be implemented in two phases.

Tender Categories Water Works, Power & Alternative Energy Tender Products Solar Energy

Oman Bausher Multi-purpose Project

Project Number OPR577-O Territory Oman

Client Name Public Authority for Social Insurance (Taminat) - Oman City Muscat 115 Postal/Zip Code 310 Country Oman Phone (+968) 2412 3000 Fax (+968) 2412 3686 Website www.taminat.com Description Development of a multipurpose project comprising (11) mixed-use commercial, residential and administrative buildings, including associated facilities in the Wilayat of Bausher.

Budget $174,000,000 Period 2015 Status Current Project Remarks This project will cover an area of 37,000m2. The commercial buildings constitute 30% of the project. The residential buildings will provide (600) housing units with utilities like gardens, swimming pool, sports and health clubs, walkways and public services.

Tender Products Commercial Buildings, Community Development, Gardens/Parks Development & Maintenance, Residential Buildings

Sohar Aluminium Rolling Mill Project

Project Number ZPR502-O Territory Oman Client Name Takamul Investment Company (Oman) Address Bayt Muscat Bldg, Mezzanine Floor, Al Ghubra City Muscat 130 Postal/Zip Code 1951 Country Oman Phone (+968) 2452 9000 Fax (+968) 2449 4986 Email info@takamul.com Website www.takamul.com Description Engineering,

Procurement and Construction (EPC) contract to build an aluminium rolling mill in Sohar with initial production capacity of 140,000 tonnes per annum.

BUDGET $400,000,000 Period 2014 Status Current Project Remarks Civil and building works are currently underway. The equipment has been purchased.

Partial hand over of the project is scheduled for August 2013.

Main Contractor Fata Group (Italy) Civil Engineering Contractor Teejan Trading & Contracting Company L.L.C (Oman) Tender Categories Industrial & Special Projects Tender Products Steel Mills

UAE Tourist Resort Project - Al-Zorah Development (Phase 1) Project Number MPP792-U Territory Northern Emirates Client Name Al-Zorah Development Compnay Ltd P.S.C (Ajman) Address Building 1 City Ajman Postal/Zip Code 8010 Country United Arab Emirates Phone (+971-6) 703 0100 Fax (+971-6) 740 7222 Email info@alzorah.ae Website www.alzorah.ae Description Construction of a tourist resort comprising a five-star hotel consisting of (154) rooms, including a theme park and golf course, private suites and villas, in addition to four restaurants and a spa.

Budget $4,000,000,000 Period 2015

Status New Tender Remarks This project will be located across an area of over 100,000m2, along 290 metres of waterfront in Ajman. The theme park will be named Mangrove of the World and offer an interactive experience with a fascinating environment along with marine nature and activities. A Golf Course and Clubhouse with a landscaped frontage to the north side of mangrove forests, including apartments and villas; and visitors’ pavilion overlooking various attractions, including the mangrove forest are other key components.

Client has invited eight UAE-based contractors to submit bids for the main construction contract on this scheme.

Design Consultant Piero Lissoni (Italy) Design Consultant-2 NORR Group Consultants International Ltd. (Abu Dhabi) Design Consultant-3 Denniston International Architects & Planners Limited (Malaysia) Design Consultant-4 Bernard Khoury Architect (Lebanon) Specialist Contractor(1) BRC (USA) Tender Categories Hotels, Leisure & Entertainment Tender Products Hotel Construction, Theme Parks Development

Green Carbon Plant Project - Aluminium Smelter Complex - Phase 2

Project Number ZPR521-U Territory Abu Dhabi Client Name Emirates Aluminium Limited - EMAL (Abu Dhabi) City Abu Dhabi Postal/Zip Code 111023

JANUARY 2013

MIDDLE EAST

& Contracting Tender Products Construction & Addition Works, Hospitality Materials & Services Retail

53

TENDERS

Country UAE Phone (+971-2) 509 2222 Fax (+971-2) 562 7264 Email info@emal.ae Website http://www.emal.ae Description Engineering, procurement and construction (EPC) contract to build a green carbon plant, as part of Phase II of the aluminium complex in Khalifa Port & Industrial Zone.

Budget $80,000,000 Period 15/12/2014 Status Current Project Remarks Local Target Engineering Construction Company has been awarded an estimated $3.6mn subcontract to install mechanical equipment for the green anode plant and butts crushing works on this scheme. Financial Consultant: Royal Bank of Scotland (UK) FEED Consultant: SNC-Lavalin International Inc. (Abu Dhabi) Main Contractor Outotec Sub-Contractor Target Engineering Construction Company L.L.C (Abu Dhabi) Tender Categories Industrial & Special Projects Tender Products Aluminium Smelters/Plants

Research & Production Facility Project - Dubai Biotechnology & Research Park

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MIDDLE EAST

Project Number WPR029-U Territory Dubai Client Name Pharmax Pharmaceuticals FZ-LLC(Dubai) City Dubai Postal/Zip Code 5374 Country UAE Phone (+971-4) 450 4211 / (+971-50) 551 5404 Email madhukar.tanna@pharmax. ae Website www.pharmax.ae Description Construction of a

JANUARY 2013

bigprojectME.com

research and production facility for a pharmaceuticals company.

Budget $11,000,000 Period 2015 Status New Tender Remarks This project will be located in Dubai Technology & Research Park (Dubiotech) and cover an area of 8,360m2.

On completion, the facility will become the regional headquarters of Pharmax Pharmaceuticals, which is a subsidiary of Ittihad Drug Store.

Local emerging architect Tareq Qaddumi has been awarded the design and project management contract on the scheme. Facade engineering consultancy firm Koltay Facades has been subcontracted by Tareq Qaddumi to lend its expertise to the project.

Scope of work includes expert and independent technical advice on facade materials, facade systems and review of the modulation.

Design work is currently underway.

The project is expected to be completed over the next two years.

Design Consultant Tareq Qaddumi Architectural & Engineering Consultants (Dubai) Project Manager Tareq Qaddumi Architectural & Engineering Consultants (Dubai) Facade Consulting Engineer Koltay Facades (Dubai) Tender Categories Industrial & Special Projects Products Pharmaceutical

NMC Specialty Hospital Project - Khalifa City Project Number OPR582-U Territory Abu Dhabi Client Name New Medical Centre Group - NMC (Abu

Dhabi) Address Madinat Zayed City Abu Dhabi Postal/Zip Code 6222 Country UAE Phone (+971-2) 633 2255 Fax (+971-2) 633 2256 / 631 7303 Email hospitalauh@nmc.ae Website www.nmcgroup.net Description Construction of New Medical Centre (NMC) Specialty Hospital comprising basement and ground floors, as well as three upper floors, capable of accommodating (250) beds, featuring (23) specialties.

Budget $200,000,000 Period 2016 Status Current Project Remarks This project will be located in the new Khalifa City area in Abu Dhabi and cover a total built-up area of around 75,000m 2. The new hospital will cater to the growing population in Khalifa City, Al Raha, Mussafah, Mohammed Bin Zayed City, Masdar City, Abu Dhabi International Airport, Shahama and Yas Island. The first phase is due to be opened by end of 2014 and will begin with an umbrella of specialised medical care encompassing emergency services, intensive care, paediatrics, cardiology, ophthalmology, orthopaedics and urology. A groundbreaking ceremony was held on December 12, 2012 to mark the beginning of construction work. Local Society Technology House (STH) Consultant is acting as the consultant. STH will provide design and supervision services, including architecture, engineering, interior design and medical services.

MAIN CONSULTANT Society Technology House Consultant (Abu Dhabi)

Main Contractor Larsen & Toubro Ltd. (Abu Dhabi) Tender Categories Construction & Contracting, Medical & Healthcare Tender Products Hospital

 Jordan  Mixed-use Tower Project-6

Project Number WPR030-J Territory Jordan Client Name Abdali Investment & Development Company - ADIC (Jordan) City Amman 11190 Postal/Zip Code 925309 Country Jordan Phone (+962-6) 468 0084 Fax (+962-6) 468 0087 Email abdali@abdali.jo Website http://www.abdali.jo Description Construction of 36-storey mixed-use tower comprising a five-star hotel, an eight-level podium containing high-end retail units and office space.

Budget $200,000,000 Period 2015 Status Current Project Remarks Civil works are expected to commence in the first half of 2013. The project is expected to be completed by end of 2015, with the hotel due to open in 2016. US-based design agency Perkins & Will has designed the tower.

Design Consultant Perkins & Will (USA) Main Contractor Dubai Contracting Company L.L.C. (Dubai) Tender Categories Hotels, Construction & Contracting Tender Products Commercial Buildings, Construction

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intersec 2013 dubai world trade centre, Dubai, United arab emirates 15-17 January With around 1,000 international exhibitors expected, the 15th edition of Intersec is set to build on its reputation as the most significant trading platform and networking event for security and safety professionals in the Middle East.

Intersec 2013 will be held again under the patronage of HH Sheikh Mansoor bin Mohammed bin Rashid Al Maktoum.

This underlines the ongoing support of the UAE authorities for the region’s foremost security and safety event. The event also includes a special conference looking at fire & safety.

Offshore Middle East 2013 Qatar National Convention Centre, Doha, Qatar 21-23 january Offshore Middle East, the region’s premier event dedicated to the offshore exploration and production industries of the Gulf region, returns to Qatar.

Offshore Middle East 2013, for the first time, include a Gas Industry Operations track. The 4th annual Offshore Middle East will include sessions relevant to all aspects of natural gas and gas liquids as part of this technical track.

The Gas Industry Operations conference track will focus on developments, issues, and technologies that revolve around the offshore production of natural gas in the Gulf.

HAPPENING THIS MONTH OMan construction Grand Hyatt Muscat, Oman 27-30 January

International

Developed in co–operation with the Ministry of Housing and officially supported

by Omran and the Oman Chamber of Commerce and Industry, Oman Construction Summit will provide an opportunity to discuss about upcoming mega projects in the Sultanate and its opportunities. Apex Medical Group, who are overseeing the development of the $1bn ‘International Medical City’ lead the Salalah projects focus day.

Contractworld Deutsch Messe, Hannover, Germany 12-15 January Contract world expo offers new perspectives to the participating companies for an improved communication with architects and interior designers. Several companies used this forum at contract world and reported about excellent and interesting contacts. It is a necessity for everybody who will operate profitable in the contract furnishing sector.

Professionals related to the field of architecture, interior design, buyers and specifiers in construction.

NAHB International builders’ show Las Vegas Convention Center, LAS VeGas, USA 22-24 January NAHB’s International Builders’ Show is the largest annual light construction show in the world—over miles and miles of the latest and most advanced building products and services ever assembled. IBS attracts more than 50,000 attendees from more than 100 countries. The event is promoted as featuring the industry’s most important global manufacturers and suppliers and showcasing the latest building products and technologies.

17-19 February 2013 Dubai International Convention & Exhibition Centre United Arab Emirates Under the patronage of H. H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Dubai Deputy Ruler

Doing Global Business a Power of Good The premier international showcase for the power, lighting, nuclear and renewable sectors.

Be a part of the world’s leading energy event. Meet over 1000 suppliers from 56 countries and discover the new technologies shaping the future of the energy industry.

Register today for FREE fast-track entry at

www.middleeastelectricity.com Co-located with:

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JANUARY 2013

MIDDLE EAST

MENA

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CONSTRUCTIVE CRITICISM

bigprojectME.com

GAVIN DAVIDS

Finish what we’ve started Gavin Davids says that while it is great that Dubai is getting back on track, the initial focus should be on completing the stalled projects that still dot the city’s landscape

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MIDDLE EAST

With 2012 now behind us, perhaps it is time for the construction industry to take stock of the year just past and chart out a course for the year ahead.

We’ve seen a lot of changes take place in the construction industry over the last 12 months. Nowhere has it been more evident than in Dubai.

Over the last six months of the year, the mega-projects have well and truly returned to the emirate, with the likes of Mohammed Bin Rashid City, the Jebel Ali Five Theme Park project and the Business Bay Canal extension all announced one after another.

Furthermore, there have been signs from both investors and developers that confidence is returning to the Dubai market, with the likes of Nakheel and Emaar announcing profit gains and rapid sales for the year.

However pleasing as this news is, what does concern me is whether the hype and excitement is obscuring the fact that there are still dozens of uncompleted projects left languishing in areas such as Business

JANUARY 2013

Bay and Dubailand. Shouldn’t the focus be on those projects instead of setting up new ones?

I don’t think I’m alone with this opinion either, as the majority of construction people I’ve spoken to have said that Dubai really needs to complete its stalled projects.

How else are investors going to be reassured that Dubai and its construction industry are well and truly back?

Perhaps there should be greater government emphasis on pushing through regulation or assistance that is geared towards assisting investors and developers, allowing for the completion of projects that have been lying dormant for years.

In my opinion it simply doesn’t make sense to start the construction of these new mega-projects at this point of time, especially when you’ve got so much left to do. It is a bit like constructing a new annex to a house when the roof isn’t yet complete.

Here’s wishing you all a very happy and prosperous 2013! n

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