084
PUBLICATION LICENSED BY IMPZ
MARCH 2013
www.bigprojectme.com
On Site
Sheikh Zayed Mosque, Fujairah
Special Report
Contractor Finance
In Profile
Kez Taylor, CEO of ALEC
Contractors discuss the challenges facing their industry as the boom time returns to the UAE
ALSO INSIDE: mortgage cap Tender updates drywalling WOMEN IN CONSTRUCTION sanitaryware
M MIDDLE EAST
CONTENTS
MARCH 2013 07
biggest news
gcc investment changing global construction
Construction growth in region driving global change in business
14
news analysis
cap concerns Breaking down the facts about the UAE’s proposed mortgage cap
16 IN Profile A fine balance
Kez Taylor of ALEC talks about finding a balance between
contractor and client
22 Site visit eastern spirituality Visiting the Sheikh Zayed Mosque, Fujairah’s ambitious plan to
put itself on the map
30 contractor focus contract squeeze Industry experts discuss what needs to be done with the
contracting industry as the boom times return
38
women in construction
above the glass ceiling
The women showing the way forward in construction
46 contractor finance stay in contract Examining the current state of contractor finance
54
time & money
unbreakable bond
The industry tells contractors how they can save time and money
56
Comment
Top sustainability trends in 2013
Saeed Alabbar shares his insights on the top sustainability trends
67
tenders
top tenders Listing the MENA region’s top construction tenders
74 constructive criticism PAGE 38
positive signs
Discussing the challenges women face in construction
government
MARCH 2013
MIDDLE EAST
Gavin Davids on a surprising move from Saudi Arabia’s
3
EDITOR’S COMMENT
M MIDDLE EAST
bigprojectME.com
Publisher Dominic De Sousa
An industry divided Kez Taylor, the CEO of ALEC, says that the divided nature of the industry could be combatted with an industry body tasked with creating fairness and raising quality in the sector. Having devoted a lot of time to contractors this month, we’ve heard many others echo his thoughts while talking about a need for greater collaboration in the industry. The lack of coordinated effort is a strange frustration when you consider that working together is an essential part of building a successful project. However there is certainly a sense that each company and, to a degree, each individual is finding themselves working in a bubble. And as everyone knows, bubbles have a nasty habit of bursting. Trying to talk to some of the associations that supposedly represent the industry, showed the Big Project team exactly what contractors are up against. Calls and emails went out and went unanswered. We found out the Royal Institute of Chartered Surveyors, for instance, has up-sticks and gone back to the UK. If you are construction professional here and you need help, advice or a sounding board you really have nowhere to go. Likewise the industry lacks a strong representative body to liase with government bodies. For the moment, raising standards and raising issues is up to the individual and at the very most the organisation that individual belongs to. There are bodies and associations out there that could do it but do they have the will to? Do we have a right to expect more from them? Or is time that the industry formed a new association?
GROUP COO Nadeem Hood Managing Director Richard Judd EDITORIAL GROUP EDITOR stephen white stephen@cpidubai.com +971 55 795 8740 deputy EDITOR GAVIN DAVIDS gavin@cpidubai.com +971 4 440 9118 features EDITOR JONATHON SAVILL editorial@cpidubai.com 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 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 percival@cpidubai.com +971 4 4409121 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 DIGITAL www.bigprojectme.com Digital Services Manager Tristan Troy Maagma Web Developers JOEL AZCUNA 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 2012 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
Group Editor
084
PUBLICATION LICENSED BY IMPZ
MARCH 2013
www.bigprojectme.com
On Site
Sheikh Zayed Mosque, Fujairah
Special Report
Contractor Finance
In Profile
Kez Taylor, CEO of ALEC
Contractors discuss the challenges facing their industry as the boom time returns to the UAE
ALSO INSIDE: MORTGAGE CAP TENDER UPDATES DRYWALLING WOMEN IN CONSTRUCTION SANITARYWARE 1 Covers_March_v1.indd 4
3/3/13 4:00 PM
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MIDDLE EAST
NOW ONLINE You can now get the online edition every month at: www.bigprojectme.com
MARCH 2013
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BIGGEST PICTURE
Huge GCC investment
changing global construction landscape
An overhaul of pm and delivery structures will FEATURE: n A change in how projects are selected and endorsed, including making use of a comprehensive business case that considers all of the project requirements n Projects set up for success by providing integrated and collaborative platforms with their contractors to review and analyse data, as they transition from reactive to proactive operating models n Selection of contracting strategies that suit available details of project scope, specifications and risk structuring
Forecasted construction spends will create increased demand on both project owners and contractors as they deliver projects As investments in the GCC’s construction sector continue to grow, the region is becoming a major driver of global change in the construction industry, several experts have said at an event organised by Deloitte Middle East and Freshfields Bruckhaus Deringer. “Driven by continued global dependence on energy, and coupled with substantial needs in the region for world-class infrastructure and industry, the forecasted vast construction spend will create increasing demands on both project owners and contractors as they deliver these projects over the next five years,” said Rizwan Shah, MD of Corporate Finance, and leader of Deloitte’s Capital Projects Advisory services practice for the Middle East. EPC projects in the GCC are forecasted to increase in size and complexity, speakers added. “We are seeing many new trends emerging in the approach taken to contract regulations, particularly in
respect to EPC. These trends are being driven by the on-going international effects resultant from the global economic crisis. Recent regional interest and international transparency reporting regimes apply very broadly to opportunities in the Middle East Consequently, much greater attention is being paid to contractual risk allocation, using increasingly detailed and sophisticated contractual provisions to define that allocation. There is also an increased interest around maintaining closer oversight on materialisation of risks and their consequences during the project delivery process,” explained Erin Miller Rankin, head of Construction, Freshfields Bruckhaus Deringer for the MENA region. Contractors will also look to increase transparency in a way that can be availed by project owners regarding contractor margins. These can then guide informed clients, while preventing contractors from ‘buying work’ at low margins.
MARCH 2013
MIDDLE EAST
Big project me investigates the impact of the central bank’s proposed mortgage cap on page 14
7
THE BIG PICTURE
bigprojectME.com
$90.6
Qatar Holding plans $1.36 billion Italian hotel project
million
VALUE OF PROJECT
Investment house to build four luxury hotels in Sardinia Qatar Holding (QH) plans to build four luxury hotels on Sardinia, an island in the Mediterranean Sea and an autonomous region of Italy. QH is a global investment house established in 2006, founded by the Qatar Investment Authority (QIA). QH invests internationally and locally in strategic private and public equity as well as in other direct investments. News service ASNAmed reported the project includes an aquatic amusement park, a low-impact electric Go-Kart route within a former landfill at Abbiadori, expanding roads and water and sewer systems. The company will build four luxury hotels on Sardinia’s Costa Smeralda, more than doubling tourism capacity to 900 beds. The project will include a 150-room Harrod’s Hotel. Harrod’s was sold to Qatar Holdings, the sovereign wealth fund of the State of Qatar in May 2010, for $2.3 billion; half of the sale was used to pay bank debts of $981 million.
Qatari Diar holds up Chelsea barracks
QACC contracted to Downtown Doha heritage project Contractor appointed to $90.6 million project in Phase 1A of Heritage Quarter Msheireb Properties has appointed Qatari Arabian Construction Company as the main building contractor for a vital section of the Msheireb Downtown Doha project. Valued at $90.6 million, the contract will see QACC take on restoration and construction work in the Heritage Quarter within Phase 1A of the project. This will include restoring four historical houses, renovating the Eid Prayer ground and rebuilding the Juma Masjid, a structure which dates back to the first decade of the last century. The restored houses will form the centre piece of the Heritage Quarter, creating an important cultural destination. The four houses, which include the family home of Mohammed bin Jassim, son of the founder of modern Qatar, will be converted into museums, cultural centres and exhibition buildings. The renovation and contract works will also include
landscaping and paving works throughout the Heritage Quarter, which is located in the north-eastern section of Msheireb Downtown Doha. Phase 1A of the project covers 11,000sqm of gross floor area and incorporates the Diwan Amiri Quarter, the Amiri Guard residences and the Qatar National Archive. “This contract is a major component of the regeneration of downtown Doha,” said Mohammad Al Marri, chief officer for Design and Delivery at Msheireb Properties. “At the same time, it highlights efforts to conserve buildings of historical value and maintain an emotional connection with the past.” “It will bring to life much of the culture and diversity that define the Msheireb project while emphasising its sustainability credentials,” Al Marri explained, adding that QACC was chosen for the project because of its expertise in this area.
Fears over British economy causes investor rethink Qatari Diar has put its largest investment in London on hold due to concerns about the British economy, sources have said.
$1.5bn
123
450
80%
$4.74bn
Amount Qatar paid for the site in 2007
Number of ‘affordable’ homes in the development
Number of luxury homes in the development
share Qatar has for The Shard, Western Europe’s tallest building
value of Chelsea Barracks housing development
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Big Project me talks to kez taylor, ceo of alec, about finding a balance for contractors on page 16
MARCH 2013
THE BIG PICTURE
40% Percentage of global gas wealth in MENA region
2.2%
$4.3trn
Population growth rate in MENA region
amount needed for investment into MENA infrastructure
23%
50mn
Percentage of MENA population that lives on less than $2 a day
Number of people that need jobs over next 15 years
60%
MENA needs $4.3trn for infrastructure Discussion panel says region needs to create jobs for 50mn people
Ajman airport plan approved
The Middle East needs $4.3 trillion to build infrastructure that will accelerate economic growth and help create jobs for 50 million people over the next 15 years, experts have said.
Airport is expected to be built at a cost of $353 million by Spanish consortium A high-level meeting has finalised blueprints for the Ajman International airport in the Al Manama area of the emirate, a senior government official confirmed. The airport is expected to be built at a cost of $353.3 million by a consortium of Spanish companies. “A high-level meeting will be held next week where top officials are expected to finalise the blueprint,” a government official said. In 2008, it was announced that Ajman airport would be built on 5.57m sqm of land and will accommodate various types of aircraft serving over a million passengers per year, rising up to 10.4 million by 2046. It will also handle a minimum of 400,000t of cargo. Several residential and commercial properties will also be developed to provide housing for employees of the airport and surrounding businesses. The airport will create over 28,000 new jobs. The UAE plans to invest $136 billion in aviation infrastructure over the course of the next 10 years.
Percentage of global oil wealth in MENA region
400mn Population of MENA
A discussion panel at the MENA Economic Forum offered a number of recommendations including liberalising investment laws and focusing on education.
Abu Dhabi government to invest $90bn to fund capital projects Investment will create 5,000 new job opportunities
$353 million cost of ajman airport
The Abu Dhabi government will invest $90 billion to fund projects which will create 5,000 new jobs for Emiratis in various sectors over the next five years. During a Council meeting, members discussed the performance of government sectors during the past
year. The extent to which the stated objectives in the 2012 general budget have been realised were checked, as well as how much progress was made on major projects within the set time frame. The council also discussed progress on a
number of ongoing projects, such as the Al Mafraq New Hospital Project, The Cleveland Clinic and government schools that are planned for 2013/2014. New York University, which will open in 2014, is another project in the pipeline.
MARCH 2013
MIDDLE EAST
Check out Big project me’s visit to the impressive sheikh zayed grand mosque in fujairah on page 22
9
THE BIG PICTURE
$1bn Omani medical city set for 2016 opening Development of project expected to begin this year, promoters say
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MIDDLE EAST
The $1 billion International Medical City in Salalah, Oman is set to launch in 2016, project officials have confirmed. Dr Naeema Aziz, project director, said that the integrated development would house the region’s first purpose built transplantation and rehabilitation centre. Furthermore, it would also have Oman’s first advanced tertiary care hospital and diagnostic’s centre. “The International Medical City will open a new chapter in Oman’s healthcare development,” Dr Aziz said. “It will establish the Sultanate as a regional hub for transplant based medical tourism, encompassing kidney, liver and pancreas transplantation and rehabilitation services. Besides easing the government’s burden in providing tertiary healthcare services, this prestigious venture will also contribute to economic development in Salalah and create employment for Omanis.” Development of the project is expected to begin this year on a 870,000sqm stretch of waterfront, overlooking the Gulf of Oman. IMC will be developed in three phases, with the first phase centred on the construction of a multi-speciality tertiary care hospital, with a proposed three centres for transplantation services, rehabilitative care and diagnostic services. Phase II will see a healthcare resort developed, with a four-star medical hotel. Phase III will focus on the development of a medical education complex, featuring medical and nursing colleges and a R&D centre. Dr Aziz said that infrastructure for the project would commence this year. Actual construction of the healthcare cluster, as well as serviced apartments, is scheduled to be completed in 2015.
MARCH 2013
bigprojectME.com
KAIA to increase workforce to 30,000 Expansion of Jeddah’s international airport 40% finished Developers say that 40% of work on the King Abdulaziz International Airport expansion project has been completed.
40%
Percentage of work completed on the King Abdulaziz International Airport
The pace of construction is likely to pick up as more workers are scheduled to be brought onto the project.
80mn Expected passenger capacity of airport in 20 years
670,000m²
Size of the new airport
Number of domestic, international and VIP lounges in expanded airport
82 18,500 Number of workers currently involved with the project
UAE construction predicted to return to full capacity INCREASE MAXIMUM PREDICTION FOR TENDER PRICES IN 2013
Construction market more stable, with Abu Dhabi and Dubai set to lead revival UAE’s construction market is predicted to return to full capacity, having ‘rightsized’ for the last two years, a report by EC Harris has found. The report takes into account the UAE’s estimated real GDP growth, thriving industry sectors, the ability to raise debt funding, investment in major pipeline construction projects and construction tender price levels. EC Harris’ tender price index shows that UAE construction tender prices fell by 3% during
2011, remained at the same level through 2012 and are unlikely to rise by more than 2% during 2013. Abu Dhabi and Dubai are dominating this growth in the construction industry, the report said. The emirates are setting the pace for the UAE construction market as a whole, it added. Abu Dhabi has made a huge investment in energy and infrastructure and Dubai has become a prime location as a hub for trade and tourism.
Yas Waterworld is the latest example of ALEC’s ability to deliver complex projects to high standards:
• • • • • • • • • •
Boasting 43 superb rides, slides and attractions 40,000m2 of artificial rockwork 130km of underground electrical cabling 28km of underground hydraulic piping completed by ALEMCO 180km of unique/themed rope work Installation of the world’s first 6-person hydro magnetic ride 6km of themed timber hand railing Project delivered in 75% of the time when compared to international waterparks (22 months) Without a single Lost Time Incident over some 7,000,000 man-hours Received the Leading Edge Award in Las Vegas from World Waterpark Association
ALEC – CONTRACTOR OF THE YEAR 2012 www.alec.ae
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THE BIG PICTURE
bigprojectME.com
Honeywell and KSA authorities seize 3,500 fake products Products found to have originated from China Local authorities in the Saudi Arabian city of Dammam have seized 3,500 cylinders of counterfeit refrigerant being sold under the Honeywell Genetron brand name. The seizure was part of a joint effort conducted by Honeywell and local law enforcement. Authorites said that the counterfeit product
was marked as Honeywell’s Genetron 134a, and was shipped to Dammam Port from China. Over the last two years, Honeywell has stepped up its anti-counterfeit operations in the region. In 2011 more than 6,000 cylinders of Honeywell Genetron 134a were seized in the UAE alone.
Jordan receives Saudi funds for development Kingdoms sign four agreements to finance development projects
3,500
10 years
Number of fake cylinders seized by Dammam authorities and Honeywell
Number of years Honeywell has been conducting anti-counterfeit operations
200,000 Number of counterfeit products seized in that time
Work underway on luxury Oman resort Project will be overseen by Muriya, a joint venture by Orascom Development Holding and Omran
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Work is underway on the luxury Maisons Cheval Blanc on Al Sodah Island off Dhofar Governorate, according to a top official of the project’s promoters. Muriya, a joint venture of Orascom Development Holding and the government owned tourism development company, Omran, are overseeing the implementation of the signature resort scheme. “Al Sodah Island Resort is possibly the least known but the most interesting of our projects,” said Chandra Lahiri, CEO of Muriya Tourism Development.
MARCH 2013
“This island next to the Halaniyat Islands right in the middle of the ocean,” he said. “What we are building here is an extremely high-end luxury hotel operated by the Cheval Blanc Group from the prestigious LVMH stable. There are only three or four such resorts anywhere in the world, and this will be the only one of in this part of the world.” The resort is set on a beachfront tract covering an area of around 480,000sqm. All 20 guest pavilions units and 12 chalets will be designed, built and equipped in the Cheval Blanc style.
$299 MILLION total amount of finance provided to Jordan by KSA
Jordan and Saudi Arabia have signed four agreements to finance development projects to a total of $299.4 million, the Jordan Times has reported. At a GCC summit in December 2011, Saudi Arabia, the UAE, Kuwait and Qatar agreed to extend $5 billion over a five-year period to support development projects in Jordan, with each state contributing up to $1.25 billion. A planned $42.4 million will be used for economic development zone infrastructure, and $62mn will fund technical community colleges and university infrastructure development projects. A total of $75 million will be used to finance the establishment of Al Shiddiyeh Railway, part of the national railway project. The remaining $120 million will be used for the reconstruction of the road linking the central city of Zarqa with the Jordanian-Saudi border at the Omari crossing point. “The Zarqa-Omari project will improve the road and reduce accidents,” Planning Minister Jafar Hassan said after the signing ceremony. The agreements are a continuation of previously signed financing deals between the two sides, totaling $487 million, under the first stage of Saudi Arabia’s grant to the kingdom,” he added. The overall first part of the grant amounts to $786.4 million out of Saudi Arabia’s $1.25 billion contribution to a $5 billion GCC grant.
THE BIG PICTURE
Oman floats feasibility study tender for causeway Tender calls for consultant to study bridge structure, environmental impact and shipping and navigation concerns The Omani government, represented by the Ministry of Transport and Communications, has floated a tender for a feasibility study for a causeway bridge linking Masirah Island and the city of Shanna on the mainland. The study will assess the financial costs associated with the execution of the project, as well as the ‘ramifications for socioeconomic development on the island’, the ministry said. Interested bidders have till April 1, 2013 to submit their offers for the consultancy services contract. The causeway is estimated to cost between $519mn and $649mn given the length of the channel, which is approximately 30km across. The project will be a capital intensive infrastructure venture, the newspaper said.
DIB makes formal Tamweel acquisition offer Offer follows approval from Securities and Commodities Authority
Construction of world’s tallest tower scheduled to be completed within 63 months of start
total cost of project
$1.2bn
total area of development for Kingdom City
5.3mn square metres
total cost of Kingdom City development
$20bn
completion target of project
63 months
500,000m2
total construction area
EC Harris and Mace have teamed up in a joint venture for the construction of the Kingdom Tower in Jeddah, Saudi Arabia, the companies have announced. Set to be the tallest building in the world once complete, the tower will rise to more than 1km in height. The EC Harris/Mace JV will provide project, commercial and design management for the $1.2bn project.
$649 MILLION estimated cost of causeway
MARCH 2013
MIDDLE EAST
EC Harris and Mace team up for Kingdom Tower project management
Dubai Islamic Bank (DIB) has made a formal offer for Tamweel, the Islamic mortgage company in which it owns majority shares. The offer follows the approval from the Securities and Commodities Authority (SCA). DIB currently has 58.2% of the issued equity of Tamweel. The bid is based on the offer of 10 new DIB shares for 18 existing Tamweel shares held. The fair value of each share for DIB and Tamweel underlying the intended swap is set at $0.61 and $0.34 respectively. Analysts said the swap offer is below the book value of Tamweel. DIB owned a strategic stake of nearly 21% in Tamweel. It increased its shareholding in the company, by acquiring additional shares from Dubai government owned entities. In September 2010, DIB took a controlling stake in Tamweel after acquiring 20% from Dubai World’s investment arm Istithmar, and 17% shares from Dubai Holding and its group companies. After DIB’s acquisition of majority stake, Tamweel announced the resumption of mortgage financing. Following the decision to make a formal offer, DIB will send Tamweel shareholders a copy of the offer, the offer statement and an acceptance form in the mail.
13
NEWS ANALYSIS
bigprojectME.com
Cap
Concerns Big Project ME investigates the consequences and reactions to the proposed mortgage cap put forward by the UAE Central Bank
E
14
MIDDLE EAST
arlier this year, the UAE Central Bank’s proposal to cap mortgages to 50% of a home’s value caused a considerable stir in Dubai’s real estate market, with real estate agents and home buyers unnerved by the implications of the move. The Central Bank proposal stated that expats would only be allowed to borrow 50% of a property’s value, while UAE nationals would be limited to 70%. The move to the new rates was described by the Bank as a way to combat the speculative buying that fuelled the highly inflated prices that Dubai saw prior to the market crash. However, the initial reaction to the rates was far from positive, with bankers
MARCH 2013
and real estate agents united in expressing concern over the effects the proposal would have on the real estate market. “A deposit of 20% to 30% would be appropriate for the UAE and in line with European standards,” said Renan Bourdeau, managing director of propertyfinder.ae. Furthermore, several
“I think there should be a limit, because we don’t want to see banks finance 90% of a project, like we’ve seen in the past, and that was one of the main reasons for the market crash”
NEWS ANALYSIS
n 50% - Central bank cap for non - UAE nationals
n 70% - Central
bank cap for UAE nationals
n 60% - EBA proposal for non-national mortgage cap
n 80% - EBA proposal for UAE national mortgage cap
potential home buyers told Big Project ME that they were unwilling to invest in a market that has no built-in stability and where dramatic legislation could be introduced at random. “People that were going to purchase are now holding back and waiting to see what is going to happen,” said Ryan Mahoney, CEO of Dubai-based estate agent Better Homes, in a criticism of the move. As scepticism continued to mount, the UAE banking industry, through the Emirates Banks Association, made a formal plea to the central bank, asking it to raise the mortgage cap for the purchase of first homes to 60% for non-nationals and 80% for nationals. Led by Abdul Aziz al Ghurair, chairman of the Emirates Banks Association, the banks put forward further amendments to the proposal. These included provisions such as whether the projects in question were under construction or if the investor was a UAE resident or non-resident. With criticism growing, the Central Bank was forced to issue a statement reassuring nervy investors and bankers that it would not impose the limits without consulting commercial banks, while pointing out that the ruling wasn’t imminent anyway.
As the dust settled and greater analysis applied to the matter, experts slowly started to realise that the move could be a good thing, as Nick Maclean, managing director at CBRE, explained. “I think a conversation about lending (over here) is an extremely good thing, and I think the initial proposal, if that’s what it is now, was never meant for implementation. But instead, it was a discussion document that was meant to determine whether or not limitations on the amount of borrowing, and the types of people who could borrow, could be put into place,” he explained. Furthermore, he added that the response from the local banks was heartening and ‘very interesting’. “There were some very interesting components to their response. So between the two institutions, I think they have the same motivation, which is to make the market here more sustainable and steady and I think that’s to be applauded,” he added. Hussain Sajwani, chairman of Damac Properties, chimed in to the debate, telling Big Project ME that in his opinion, there should be a limit imposed on borrowing, as it could only benefit the real estate market and local developers. “I think there should be a limit, because we don’t want to see banks finance 90% of a project, like we’ve seen in the past, and that was one of the main reasons for the market crash,” he said. Furthermore, he said that if the cap was implemented, it would weed out the speculators and investors who weren’t serious about projects. “I think we want serious investors who’ll put serious equity on the table. I don’t think the market wants an investor who’ll put 5% and speculate. That’s what caused the problem in the past, and I don’t think the market needs those kinds of investors,” Sajwani stressed. Maclean added that he expected the cap to have a steady medium to long term effect on the UAE real estate market. “I think there’s a lot of positivity to be taken from the efforts to calm the market, but at the same, not impact on the speculative buyers who are coming into the market without mortgages,” he asserted. n
Hussain sajwani
nicholas maclean
MARCH 2013
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proposed cap numbers
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IN PROFILE Kez Taylor
MARCH 2013
bigprojectME.com
IN PROFILE kez taylor
A Fine
Balance Gavin Davids talks to Kez Taylor, chief executive officer of ALEC, about what needs to change to make the regional construction industry a unified force to reckon with
is conducted in the region, starting with Dubai and Abu Dhabi. “The market has definitely picked up, especially in the UAE and in Dubai. Business confidence is back here although Dubai went through a bit of a slow period. It’s positive to see things picking up again, and I think the players that are still here today are the players that are in here for the long term,” he says. “Confidence has come back and people are actively participating again, but look, I think the more mature clients, they realise the value of having the right participants in the team, and they’ve realised that if you put the right team together, you end up with a winning solution for all parties. This is a good solution to have.” “It’s about not having a ‘winlose scenario’, it’s about ensuring all participants in the team succeed out of it
“I think the more mature clients, they realise the value of having the right participants in the team, and they’ve realised that if you put the right team together, you end up with a winning solution for all parties”
MARCH 2013
MIDDLE EAST
“
We’ve had a really challenging year, but also a very successful one. We’ve just finished Concourse A (Part of Terminal III at Dubai International Airport), which was a huge project. It’s the first dedicated A380 terminal concourse in the world. It was a tough job, but we had a very good leadership team on that project and we worked really well together. From consultant to client, we all had a common objective and we pulled off the job successfully,” says Kez Taylor, chief executive officer of ALEC, as Big Project ME sits down for a chat with him at the contracting firm’s headquarters in Dubai Marina. Without realising it, he’s just pointed out a fundamental flaw in the way Dubai’s construction industry operates, and at the same time, shown how things could and should be done in the future. Not a bad start to the interview. Having set up shop in 1999, ALEC has been involved in a number of major construction projects across the GCC, with projects such as the Dubai and Doha international airports and the recently opened Yas Waterworld as part of its portfolio. Kez Taylor has overseen the growth of the company to a regional behemoth, with offices in Oman, Qatar and Abu Dhabi. As such, he’s perfectly positioned to cast a critical eye across the industry and lead the call for a change in the way business
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IN PROFILE kez taylor
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(the project). That’s what we have to strive for all the time, to find those kinds of balances. In our industry, you don’t often get that kind of scenario. It often ends up in a ‘win-lose scenario’, or maybe a ‘loselose scenario’. Those aren’t good scenarios to be in,” Taylor explains. “We always look for where we can actually end up with a solution that benefits all parties (involved in a project).” This approach could have wider reaching consequences for the industry he says, which has too often seen clients and developers opting to make short-term decisions that have repercussions further down the line. Citing well publicised instances where clients have opted to hire the lowest tendering consultant and contractor for a project to save costs, Taylor says that this often leads to problems further down the line, that end up costing the client millions. “It’s been proven through research that a consultant, who isn’t maybe the cheapest guy, will deliver and save the client 10% of overall development costs because he’s come up with an efficient design. As opposed to the cheaper guy who doesn’t provide the right kind of service and actually ends up costing the client 20% more. You’ve got to see the value,” he says. “What’s the value of having the right consultant who’s going to come up with a brilliant design and what is the value of having the right contractor that can get involved early enough that he can influence things for the benefit of the client?” He asks, knowing that the answer is obvious. “If you look at it, we entered into contracts where the design team is employed by the client and the contracting team is also employed by the client, but they’re actually separate. They don’t really come together and in that, you also enter into a contract where you’ve got very onerous terms and conditions.” “So from my perspective, what we really need to do, moving into the future, is that the design teams need to come up with designs that are workable, efficient, that are cost effective, that are constructible and I think there needs to be a meeting of minds at a much earlier phase if you want to have a really successful development
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“Our industry is very divided, so we have onerous contracts, we have designers that are employed under a certain set of conditions, and (the whole situation) doesn’t necessarily provide a suitable service”
Concourse A ALEC worked on Concourse A,part of Terminal 3 at DIA.
that’s going to deliver value through to the client,” he asserts. Terming the current situation as ‘people working in silos’, Taylor is adamant that if all the elements of the team come together early in a project, it will be more cost effective and beneficial for the client in the long run. “I think what’s got to happen is that you’ve got to bring those minds together and you’ve got to end up with a design that works, something that’s constructible, cost effective and a benefit to the project and the client at the end of the day. I don’t think we do that as an industry,” he says. “Our industry is very divided, so we have onerous contracts, we have designers that are employed under a
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IN PROFILE kez taylor
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YAS Waterworld ALEC completed MEP works on the waterways at the Abu Dhabi waterpark.
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certain set of conditions, and (the whole situation) doesn’t necessarily provide a suitable service.” As such, he suggests that perhaps the best option could be having a body that acts on behalf of the industry, setting out a clear set of guidelines, not only on best practices, but also on drawing up fair contracts, reasonable terms and conditions and that helps to foster a long term relationship with players in the construction industry. “I think you’ve got to have people who see the big picture work together. It’s not just about one project, but it’s about being successful on one project and seeing a long-term continuity relationship develop with those players. You’ve got to really strive to try and find the right participants that have that kind of mind-set. And also, the terms and conditions that people are employed under need to be reasonable for both parties. You need a fair set of contracting conditions and you don’t always get that,” Taylor explains. This is where he returns to his original point, stating that a representative body could be a feasible step in the right direction. Not only will it bring order to the industry, it also increases the accountability of all participants, from design to contractor to sub-contractor on a project.
“We’re part of a big industry and I think we should encourage it (an industry body). It would definitely be a good thing and it would be well supported by the industry.” “There’s a lot of confusion in our industry about who’s accountable for what. I don’t believe that there’s clear accountability for various bodies and we always end up with a grey area of shop drawings as a main contractor. Where people interpret where that responsibility starts and ends is often very different. I think what we need is for people to take accountability for what their responsibilities are and then get their cooperation within that framework.” Bringing things full circle, Taylor says that Dubai Airport’s growth over the last ten years is the perfect case study for the changes he’s suggesting. “How do you deliver the requirements on a fast track basis when you don’t even have a full design yet? How do you figure it out? How do you get it right? I think (Concourse A) is a good example of that,” he points out. “We didn’t have a full design and we actually had to put a team together. We all had to come together to come up with a workable solution, and I think we could use this as a case study (for the industry),” Taylor concludes. n
ON SITE Sheikh Zayed Mosque fujairah
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Eastern
spirituality
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Big Project ME takes a trip to the East Coast of the UAE to explore a remarkable project hidden away in the mountains of Fujairah
MARCH 2013
ON SITE sheikh zayed mosque fujairah
38,500m²
Prayer Hall
6,980m²
Covered Courtyard
4,884m²
Open Courtyard
5,124m²
Female Prayer Hall
2,014m²
Balcony Level
1,725m²
O
ver the years, the East Coast emirate of Fujairah has acquired a reputation as something of a local holiday destination, with beaches and mountains that are perfect for weekend getaways and day trips. As a result of this burgeoning tourism industry, there has been a surge in the number of hotels and resorts being built along its coastline. Despite all the construction work going on, the ruler of the emirate, HH Sheikh Hamad bin Mohammed Al Sharqi, was determined to create something truly unique for his people. An iconic structure that would match anything built in Dubai, Abu Dhabi or Qatar. This desire has led to the creation of what could become one of the East Coast’s most defining cultural landmarks, the Sheikh Zayed Mosque of Fujairah. Much like how its counterpart in Abu Dhabi has become a tourist attraction and reference point for Islamic architecture,
“The Sheikh wanted a completely traditional design and we tried to combine (modern elements), because we knew that a lot of elements weren’t available. But the Sheikh wanted it that way, so we had to overcome that”
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Total Area
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ON SITE sheikh zayed mosque fujairah
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the Fujairah mosque aims to be more than just a place of worship. Built in the Ottoman Islamic style, the mosque bears more than a passing resemblance to one of the most famous buildings in the world, the Sultan Ahmed Mosque in Istanbul, Turkey. This was a deliberate choice by the Fujairah ruler, as he wanted a building that paid tribute to Islam’s history, says Hesham Sheikh Amin, managing director of Arkitek ICB, the Malaysian firm behind the design of the project. “It was a challenging project,” he recollects. “The Sheikh wanted a completely traditional design and we tried to combine (modern elements), because we knew that a lot of elements, the craftsmanship and the workmanship, wasn’t available. But the Sheikh wanted it that way, so we had to overcome that.” “Design-wise, we made everything accordingly. We managed to get a very traditional layout and external elevations. The Sheikh also wanted to have a mass volume bigger than similar sort of mosques, like the ones in Damascus and
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n $98mn
Original tender for the mosque
n $55.8mn
Re-tender for the mosque
n $20mn
Budget for the interior and landscaping
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Istanbul. This is bigger than those two; the largest dome in Istanbul’s mosque is 32m or 38m across. We have one at 42m, so it’s quite a bit bigger. He wanted it to be something of a record holder,” Amin explains. With design work on the project starting in 2005, the mosque has been in development for a number of years, Amin says, but finally in January 2013, the first phase was completed and it was ready to be handed over for the interiors to be fitted out. Covering a total area of 182,885m2, the entire complex is set to consist of the mosque, a religious learning centre and a luxury residential development. While the mosque and religious centre are to
“The Sheikh also wanted to have a mass volume bigger than similar sort of mosques like the ones in Damascus and Istanbul. This is bigger than those two”
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ON SITE sheikh zayed mosque fujairah
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be used by worshippers and religious scholars, the residential developments are to cater to the high-end, luxury market. “The third building is a multi-storey building that is residential. It will help sustain the expenses, the work of the mosque,” Amin says. “The design that we have now is going to be luxury, two and three bedroom residential. It’s a little bit upscale in order to get a bit of income.” “(The mosque) is a huge structure and it’s expensive to maintain. So the Sheikh thought (this would be a good way). It’s just across the road; we have two plots next to each other. That will be Phase III.”
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However, he points out that these plans are still a long way off, as the focus is on getting the mosque completed. With the exterior work done, all that remains is getting the budget from the Ministry of Public Works for the interior design and the landscaping. “We’re waiting for the budget to be determined and we’ll be guided by that. Once we have the budget, we’re ready to go. All the drawings and design work is already done,” he says, estimating that they will have a budget between $19 million and $20 million to work with. While the design of the mosque was certainly challenging, Amin says that the actual construction process proved to be the most difficult, with significant hurdles in place over a long build period. One of the first priorities was to bring the cost down. Having initially been tendered at $98 million, the company then decided to value engineer the project and re-tender the project, bringing costs down to $55.8 million. The project has been partially funded through a grant of $30 million by HH Sheikh Khalifa Bin Zayed Al Nahyan. “During construction, then came the real pain. For example, we had to find a lot of carved stone and you can’t find the crafts people just anywhere. So we had to go back, in many cases, to places like Syria to outsource,” he explains. “But we couldn’t do everything in carved stone; it would have taken too long and increased the cost significantly, especially when we were already tight on budget. So the main elements, the gates and the very critical and touchable elements, that is all natural carved stone, the rest is artificial aesthetics or GRC materials.” Furthermore, building a project with such massive dimensions caused its own problems, he says, with the height and width of the massive main dome a particular challenge. “We had to steel frame it,” Amin says of the dome. “It was all steel frame and cladding of lightweight GRC. The entire frame was stainless steel space frame. We had to bring in specialised companies to do that.” Furthermore, from an MEP point of view, the dimensions and traditional styles of the building proved to be
ON SITE sheikh zayed mosque fujairah
The outstanding features of the mosque are six, 107m high minarets, clad in white marble, and rising from each corner of the courtyard. The two storey building consists of an underground floor that holds a woman’s prayer hall, separate ablution facilities and service rooms, and a ground floor that holds the main prayer hall. The outer yard is surrounded by four colonnades and topped by 35 small domes.
the walls, so that the air will blow to all four sides of the mosque,” the managing director of Arkitek ICB explains. One advantage of using the traditional methods of construction was that the mosque was already sustainable from an energy efficiency point of view. Given that air-conditioning was yet to make an impact on Ottoman architecture in the 1600s, the architects of the age came up with ingenious solutions to keep the interior of their buildings cool. By following in their footsteps, Amin says that Arkitek ICB was able to build cavity walls that did not require any insulation materials or thermal blocks. “We used the old style because we could not afford to use new materials as it’s a very traditional building. But at the same time, you have to make it very comfortable to users, and it is actually.” “Even if you go to old mosques in Istanbul or whatever, it’s very comfortable, even in summer because the heat is all reflected out,” he explains, ending a tour of a truly special achievement in Fujairah’s architectural history. n
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particularly awkward, with no space available for the installation of HVAC units, a crucial factor when attempting to fit in over 11,000 worshippers in the inner prayer hall alone. (In total, the entire mosque can hold 28,000 worshippers). “It was an engineering challenge,” Amin says. “In the old days you didn’t have AC. But at the same time, because of the style of the building, we don’t have any flat roofs, we’re not supposed to have flat roofs!” “So we had to find a way to bring the HVAC in. We cannot run the ducts because we don’t have the flat spaces for it, or the false ceilings. So we had to use cavity walls. We have 2m wide cavities (in the walls). But then we had the problem of cooling the centre of the building, because you have a dome effect created,” he says. “We considered that during the AC study and found that with the dome effect, you have very hot pockets in the dome and you have to distribute the air evenly.” “So we ran all the risers through the inside of the walls, and the blowers from
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14-17 April 2013 Jeddah Centre for Forums & Events Kingdom of Saudi Arabia Co-located with
Saudi Building & Interiors Exhibition
The region’s largesT ConsTrUCTion
eQUiPMenT eXhiBiTion Find out more. Visit www.constructionmachineryshow.com © 2013 Corporate Publishing International. All rights reserved.
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. We will be back in April 2013, Will you?
CONTRACTOR FOCUS
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Big Project ME talks to some of the leading contractors and analysts in the country to find out where the UAE’s construction industry is headed in 2013 and beyond
MARCH 2013
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CONTRACTOR FOCUS
A
is now more stable, although the key construction markets of Abu Dhabi and Dubai are at differing stages of the cycle,” says Chris Seymour, head of property at EC Harris. “High quality, well-designed and welllocated developments remain in demand and the focus is increasingly on revenue generating developments. Although this may sound like an obvious condition, it has not always been the case,” he adds. The EC Harris tender price index has shown that UAE construction tender prices fell by 3% during 2011, remained the same during 2012 and aren’t expected to rise by more than 2% during 2013, Seymour says. With Abu Dhabi and Dubai setting the pace, demand for real estate and infrastructure is being fuelled by expansion and urbanisation. This is something that Bishoy Azmy, CEO of Al
“High quality, well designed and well located developments remain in demand and the focus is increasingly on revenue generating developments. Although this may sound like an obvious condition, it has not always been the case”
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recent Dubai Chamber of Commerce and Industry study has predicted that the UAE construction industry is set to “exhibit sustainable growth prospects” over the next few years, which will feed into the growth of the domestic economy as the enormous investments into the industry begin to show fruit. According to the report, the construction sector is projected to contribute 11.1% and 11.5% of the UAE’s GDP by the years 2015 and 2021. To illustrate just how much that is in actual terms, in 2011 the International Monetary Fund said that the country had recorded the highest construction project value, totalling $319.1 billion. This accounted for 51.1% of the total construction project value amongst the top 100 projects in the GCC. As the UAE pushes forwards with its quest to become an international investment hub, major construction projects in infrastructure and residential/ non-residential segments are being fasttracked by the government authorities. Projects such as the $7.8 billion expansion of the Dubai International Airport and the $6.8 billion redevelopment of the Abu Dhabi International Airport are but two examples of the expenditure on the country’s transport infrastructure. These figures don’t even consider the recently announced projects such as the Mohammad Bin Rashid City and the Jebel Ali amusement parks, both of which are multi-billion dollar enterprises in their own right. It’s clear then that the market warrants a closer look, especially as the construction industry gears up to meet the challenges these projects are sure to bring. While it’s all well and good announcing them, the onus to deliver them will be on contractors. As a result, Big Project ME decided to talk to some of the biggest movers and shakers in the region to find out their thoughts on where the UAE’s market is headed, and what should be done to best prepare or a momentous phase of the construction cycle. “After the highs and lows of recent years, the UAE construction market
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CONTRACTOR FOCUS
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Shafar General Contracting agrees with; pointing out that his company has seen similar trends, with the majority of thrust coming from governmental bodies. “Some of the major trends we noticed over the last year included the award of several large-scale projects in the UAE, in addition to the awarding of large-scale projects in GCC countries to UAE-based contractors. Furthermore, there were a multiple government projects also awarded,” he says, adding that there’s now more positive sentiment in the UAE construction market. “We can see that companies now talk about growth plans in the future, while in the last year the vision was not clear enough and there were speculations about the future of the industry.” However, a senior official from Habtoor Leighton Group, who declined to be identified,warns that there is a shift in focus taking place within the industry. He explains that industry attention is turning towards the infrastructure and energy-related sectors and away from traditional building sectors. “We’ve seen less projects being awarded, although there has been an increase in tendering activities,” the spokesperson says. “However, we are also seeing an increase in the number of companies participating in the bid process.” Craig Plumb, head of research at Jones Lang LaSalle, explains further, stating that patience could be a virtue for contractors in the country. “Analysis suggests that Dubai has passed through the peak of its construction cycle, so increased demand will continue to reduce oversupply. A number of major projects have been announced in Dubai recently, but these will take some time to come to fruition,” he cautions. Philippe Dessoy of Six Construct agrees with this, but adds that in the years since the financial crisis, the construction market has changed dramatically. “Competition is tough now and contractors are facing smaller margins. It’s a more competitive environment. In the old days, there were five companies in a tender, now it’s 13 or so,” he muses, adding that: “Contractor’s lives are up
MARCH 2013
bigprojectME.com
“Competition is tough now. contractors are facing smaller margins. It’s a more competitive environment” – Philippe Dessoy
philippe dessoy
and down, it would be nice if the industry could stabilise a little!” However, all three agree that competition is now a major challenge for established contractors in the region, with Azmy adding that even though the market is recovering, prices still remain competitive. This means that contractors are forced to find “the correct pricing formula,” he says. “Increased competition, diversification into new sectors and geographies, in an attempt to adapt to market conditions that remain fairly unpredictable, are some of the changes we’ve seen in comparison to previous years,” says HLG’s spokesperson. He adds that this leads directly to some of the major challenges contractors are facing in today’s marketplace. “The inability to forecast and a lack of visibility in the mid- to long-term are the major challenges contractors are facing. Increased competition has resulted in some contractors bidding below cost on major large scale projects. “The backlog of un-awarded projects from 2011 to 2012 that may potentially
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CONTRACTOR FOCUS
bishoy azmy
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start getting awarded, could have a major impact on cost escalation and resources availability, and the industry will suffer heavily and will ultimately impact the end-users and clients,” he says, a little ominously. Azmy adds that with the construction industry having such a major impact on the country’s economy, the need for greater dialogue becomes paramount if there is to be any significant progress in the way contractors can contribute to the greater good of the country. “There are around 200 businesses that operate to serve the construction industry. I think there needs to be interaction between the different parties in the industry. “There should be a greater role for an entity such as the Contractors Association to regulate the market and provide suggestions based on feedback
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“There should be a greater role for an entity such to regulate the market and provide suggestions based on feedback from contractors” – Bishoy Azmy
MARCH 2013
from contractors,” the man from ASGC says pointedly. “I would also encourage clients to adopt more transparent methodologies during the tendering stage and establish a dialogue with the contractors at the initial project stage,” he adds, pointing out that this can be achieved at different levels throughout the procurement process. The HLG source asserts that: “There needs to be more visibility over budget allocation from project owners, especially government related entities. Clients could reduce shortlists so that contractors are not wasting money on bids they are unlikely to win.” “Ambiguity has a negative effect throughout the market,” Azmy continues. “Unfortunately, some clients prefer to enter into a ‘silence’ phase at some point of the project, which leaves all project stakeholders in the dark, as opposed to clients who announce updates publicly and provide guidance that allows contractors to effectively plan their strategies,” he explains. A need for clarity This call for transparency is one that is echoed by the industry, says the HLG spokesperson, explaining that there is now an urgent need for greater communication and more clarity in the country’s construction market. This is essential at a time when the construction market looks set to begin a resurgence and a move to introduce this could help prevent the mistakes of the past aren’t repeated.
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CONTRACTOR FOCUS
As such, there have been rumblings for an increased level of government representation through industry bodies such as the UAE Contractors Association. Such an empowered body would be capable of taking common causes to the government level and fighting for either a resolution or clarification on behalf of the entire industry. “Certainly this would be a step in the right direction to help the industry become more responsive, better prepared and providing fair and equitable return to all stakeholders,” HLG’s source points out. Bishoy Azmy adds that while he thinks that a body like this would be a good idea, he would prefer them to act in an ‘indirect way’ and allow contractors to continue with their business. “I think (government representation) would only work in an indirect way through bodies such as the Contractors Association or the Chamber of Commerce. These are entities that should represent the contractors and speak on
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“There needs to be more visibility over budget allocation from project owners, especially government related entities”
their behalf,” he says, but repeats that increasing transparency would be the best way to improve the functionality of the construction industry. Philippe Dessoy adds that one way BeSix Construction (the local arm of SixCo) gets around the common client issues is by working with developers and companies it knows and trusts. “We only do work for governments and people we trust,” he says. “That way we decrease the financial risk of each project,” he points out, highlighting the fact that it’s hard for contractors to be cash positive, and that this method has helped his company ensure its stability in the long run. Despite these issues and concerns, the experts remain convinced that the UAE construction markets are set for a positive growth across all divisions, and are excited by the opportunities ahead. Dessoy says the recovery of the region is well underway, and that there are more and more projects coming up, while HLG is adamant that the companies with strong fundamentals in place will continue to flourish in the UAE. “There are significant opportunities for contractors, but it is likely there will be some rationalisation throughout the industry. Strong fundamentals will continue to underpin the economies of the GCC and some of the wider MENA countries,” he says. “We believe that some of the delayed backlog of projects will start to materialise sometime in 2013 and beyond.” Azmy adds that he thinks the industry is recovering strongly, with the lessons of the last few years absorbed by all players in the industry. “This gained experience gives us confidence that we are now better prepared to tackle the challenges and that the UAE construction industry will continue to grow in the right path.” “I see new projects awarded in different sectors accompanied with a gradual increase in the construction cost,” he comments. “I believe also that the market will naturally improve itself as the developers become more aware of actual market needs and will develop necessary projects to satisfy real demand.” n
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women in construction
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Above the glass
ceiling
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Three women working in the Middle East’s construction industry talk to Big Project ME about the issues and challenges women face when it comes to bridging the gender divide
MARCH 2013
Women in construction
I
t’s always been something of an open secret that the construction industry has been one of the last bastions of male domination, a sanctuary for the archetypical ‘alpha male’ and one where no woman would dare tread, for fear of breaking a nail. Ridiculous as that sentiment may be, there are justifiable reasons for concern when it comes to evaluating the prevalence of women in the global construction industry. To illustrate just how underrepresented women are, one needs to only look at the statistics to see the alarming truth. According to a US focused study carried out by the National Association of Women in Construction, a mere nine percent of the US construction workforce is made up of women. Of that nine percent, 76 percent of them hold sales and office positions, the report said. Between 2005 and 2010, the number of women in the industry actually dropped by close to 275,000, figures from the Association showed. If the numbers are so bad in the US, what then of the construction industry in the Middle East, which is, by and large, a traditionally male-oriented society? As official numbers are hard to come by, Big Project ME spoke to three women working in construction in the region to get a sense of where their gender stands in relation to the rest of the global industry. Caroline Lewis-O’Halloran is the regional director of marketing and business development for Hyder Consulting ME. Currently based in Dubai, she plans to move to Saudi Arabia to work on Hyder’s projects in the Kingdom.
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“For expats going to the middle east, it is percieved as quite a difficult place for women to operate in business”
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Women in construction
Caroline LewisO’Halloran
“Hyder creates a positive environment for women to develop and grow their career with no ceiling or limits,” she says. “Our organisation employs over 4,000 people around the world, with 1,200 staff located in the Middle East, and we are a multinational company, committed to diversity.” Lewis - O’Halloran adds that approximately 17% of the workforce at Hyder Middle East is female, though the percentages are higher in the UK, Europe and Asia Pacific. Furthermore, in some parts of the company’s business,
bigprojectME.com
Career boost Allison Wicks says there’s massive opportunity in the Middle East.
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“the UAE is a construction playground, you have larger projects which you’d never have experience of, or exposure to, in the UK”
MARCH 2013
particularly in their environment sector, the number of women employed rises to close to 50%. “It’s interesting to note that in a recent study of over 350 Fortune 500 companies’ public financial returns has shown correlation between the representation of women in leadership and corporate performance,” she points out. “The study reveals that the top 25% of companies with the highest proportion of women in leadership positions averaged over 35% higher return on equity and 34% higher total return to shareholders than those companies with the lowest representation of women.” Lewis – O’Halloran concedes that this may be difficult to implement in the Middle East, given the reputation it has in the West as a tough operating environment for women. “For expats going to the Middle East, it is perceived as quite a difficult place for women to operate in business, so if you combine this with the very low number of women engineers anyway, you’ll see that it is very hard to attract women engineers to the region,” she explains, but adds that there are quite a few Middle Eastern business directors who are females, while countries like China and India are also producing more female engineers, which is a promising sign for the future. However, Allison Wicks, a completions manager for Six Construct, doesn’t necessarily agree that women have it all bad in the Middle East, pointing out that the benefits of working and gaining experience in the Middle East far outweigh the negatives. “UAE is sometimes referred to back home as a construction playground, and an ambition for many is to work here. You have larger projects which you’d never have experience of, or exposure to, in the UK. So I think definitely, if you want to advance your career, this a good place (to come to),” she points out. Having come down to Dubai in 2010, Allison has been involved with the Cleveland Clinic in Abu Dhabi, a mega project that has as many as 16,000 people working on site. This does present certain challenges, she says, especially when it comes to dealing with cultural differences, but a little diplomacy goes a long way.
Women in construction
In the UK around 200,000 women work in construction, proving that it’s not just jobs for the boys. One in 14 of the UK workforce is employed in constructionnearly two million people. Women account for around 1% of tradespeople in the UK and 11.6% of them work in design and management occupations. The differences between Europe and the Middle East are less extreme than you may imagine. Of the United Kingdom’s top 100 companies listed on the FTSE 100, only two are run by women. In the UAE, Noura Al Kaabi is the chief executive of twofour54, the Abu Dhabi world-class media hub. Dubai’s Raja Easa Al Gurg runs a private conglomerate employing thousands of men and women in construction, industrial, property and other sectors. Amina Al Rustamani is the chief executive of Tecom Business Park, where hundreds of companies operate in the nine free zones under Tecom’s umbrella, including Dubai Media City and Dubai Internet City. Salma Hareb is the chief executive of Dubai’s Jebel Ali Free Zone Authority, one of the world’s busiest free zones.
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MIDDLE EAST
Annette mcelligott
“The approach of working is quite different in the Middle East, especially when it comes to quality, and of course the construction legislation which you work to. We have workers from fishing villages, farming industries (in SE Asia), who are now working as operatives in construction. So it’s a complete contrast (to the UK). Obviously, there’s also the language barrier as well.” “ You do have to be (more hands on), aside from the usual methods of communicating,” Ally says. “In my role I work mainly with the construction managers and the floor managers, the supervisors for MEP and so on, so it’s easier to get the message across.” However, she does concede that initially there was an element of culture shock when she first arrived, with the construction workers not used to having women onsite. Despite this, any initial disconcertion fades once she gets down to work, she says. As a completions manager on a massive project such as the one in Abu Dhabi, she’s often asked to take the lead on a number of issues. One important aspect of her work on the Cleveland Clinic is being tasked with the implementation of an automated handover management tool that combines a central database and the use of handheld technology like tablets. “All the snagging is fully automated. We take a photo of the defect or the snag, produce reports which is sent to the central database where all the information is stored. We also administer our handovers and documentation through it now. We’ve got more than 7,500 rooms to handover, so it keeps paperwork to a minimum!” Allison adds that when she and her colleague brought the technology to management at Six Construct, they were happy to let her run with the idea, do the research and then back the introduction of it on such a massive project. This is attitude is symptomatic of the attitude the contractor has towards its employees, regardless of gender, she says. “Within my company, they run an internship programme for university graduates. It operates from Belgium and overseas. We have had several graduates who receive training and development
41
Women in construction
bigprojectME.com
“the attitude is you’re just a girl, you don’t know what you’re talking about. But prove them wrong once, and they take you seriously”
42
MIDDLE EAST
through the company and are working on our project,” Ally explains. Further evidence of this progressive attitude has been the increased number of women she sees working with her now on a daily basis, many on jobs that require them to be on-site on construction projects. “They’re definitely employing more women. Initially there were only a few of us, but since I’ve been here, I’ve noticed there are many women working in positions (onsite). There’s definitely an increase in women in manager roles (for example),” she points out. Annette McElligott, a senior manager at Tamkeen, adds that one of the issues that women face in the construction industry is combating pre-conceived notions about their ability and suitability for the work. “There is a perception that girls can’t do this. That you’re going to end up in a hard hat and a vest. There is a perception that you need to be good at maths, but construction management is a management role,” she says. “Sometimes the attitude is that: you’re just a girl, you don’t know what you’re talking about. But you prove them wrong once, and they take you seriously,” she asserts. “I talk to my team, and say this the way I’d do it, ask how they would do it, but it’s a question of asking their advice, but not always following it,” she adds. While she welcomes the introduction of more women into the construction industry, she remains cautious about the pace at which change will take place, and points out that women should be appointed, not just as a sop to political correctness, but entirely on merit. “I have very few female colleagues and I am the only female senior manager in the Real Estate and Technical department,” McElligott says. “(But) I go to work to work, not to make friends. If I do, it’s a bonus, but I’m there to work.” n
MARCH 2013
Whitney Morris: Young and talented By any standards it has been a
loose sands and a high water
great year for Whitney Morris,
table. Morris’ responsibilities for
project engineer of DeSimone.
the project included structural
This year she won the ‘Young
modeling, analysis, design,
Engineer of the Year’ award on
detailing and drafting of the six
behalf of her company.
complicated podium levels and five below-grade parking levels
Speaking of the award she said:
as well as the analysis of the
“I’m very humbled and I’m very
lateral system.
grateful to be recognised this way. Hopefully I can keep doing
Before moving to the UAE
more good work. It’s a nice pat
she worked in San Francisco,
on the back for sure because I
California as a structural engineer
have been working really hard.
where she had the opportunity to
It’s nice to be recognised this way
be part of the structural design for
and it gives me more oomph to
several high rise and high profile
keep going”.
structures.
In just two years Morris has
“If you are good at your job it
made invaluable contributions
doesn’t matter if you’re a woman.
to projects such as the Regent
You have to prove your value
Emirates Pearl Hotel and the Al
to the team and then you gain
Hilal Bank Tower, where she
the respect of your workmates,”
provided complex analysis and
Morris explains.
design of both structures. But she does think that working
AllISON wicks
On the Al Hilal Bank Tower,
in the Middle East is slightly more
DeSimone developed a number
frightening: “At first walking into
of schemes to reduce structural
a room full of male engineers in
costs and construction times,
a strange country is terrifying. But
particularly at the below-grade
you have to learn to hold your
levels where excavation faces
ground and rely on your expertise
a challenging combination of
to get you through.”
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FINANCE Contracting
bigprojectME.com
Stay
in contract Jonathon Savill examines the current state of contract financing and finds that it is not all bad news. It’s not all good either…
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MIDDLE EAST
construction boom With the region’s GDP increasing, construction activity should improve.
MARCH 2013
A
n old Chinese curse, the first of three, states: “May you live in interesting times.” Nobody can deny that residents of the region are living in interesting times. The feeling here is that a boom is starting. Every patch of sand is a potential mall, and the sound of pile drivers is always in the air. The MENA region currently has a population of 340 million. This is expected to increase to 600 million by the year 2030. The MENA region’s GDP is set to grow from $2.4 trillion to $3.6 trillion in that time, providing a boom for construction related industries as they strive to meet the demands of projects over the next five to ten years. There are several factors about to affect contractor finance in a major way. They
are, in no particular order, the Third Basel Accord, the rise of Islamic finance and finally, the lack of money in the Eurozone. Then add the fact that construction is in a depression at the moment, and that contractors are taking low cost projects just to keep their turnover viable. Add in the fact that fewer clients are making big up-front payments, and it’s a worrying time for the industry. It means less finance is available and more people will be chasing it. So is the outlook grim for contractors? Well it depends. If you are a contractor who has just been given a chunk of MBR city in Dubai, you might want to sit back and light a cigar. If on the other hand, your project is a power station, wind turbine farm or a
Jammah al rammah
FINANCE Contracting
n $8.5 billion
Amount raised in 2012
n $40 billion
Expected Middle East and Africa project loans in 2013
n $23 billion
Amount raised in 2011
n $1.1 billion
Amount borrowed by the TAV led consortium for Abu Dhabi Midfield terminal
n $4.58 billion
Amount borrowed for EMAL’s expansion
n $49 billion
Bond sales in the MENA region in 2012
n $1 trillion
Worth of projects in the GCC region
“There is a lot of offshore money that would like to enter the Dubai market but the investment opportunity is simply not there”
MARCH 2013
MIDDLE EAST
bridge, you may find that they are hard to finance because they are long term projects, which are notoriously difficult to fund, unless you talk the government into a private-public partnership (PPP). But as general manager of Sixco, Philippe Dessoy, has previously pointed out, PPP projects are not madly profitable. But they are useful to smooth out the boom and bust cycle of the balance sheet. What about the snappily named Third Basel Accord? The accord seeks to ensure that banks have a minimum liquidity level and can’t go bust. It will implement a series of minimum requirements, to ensure the strength of the banking system. This is good for the world but bad for contractors, because lending rules will become more stringent, and thus harder to qualify for. The Eurozone has traditionally been a source of funding for projects in the Middle East, but not only has most of Europe signed up for the Third Basel Accord, the continent has got problems of its own. Yet as Nicholas Maclean, managing director of CBRE in the region, points out to Big Project ME, “There is a lot of offshore money that would like to enter the Dubai market but the investment opportunity is simply not there.” The second part of the Chinese curse that started this article says: “May you come to the attention of those in authority.”
Dubai first became great because the rulers took a very enlightened view and decided to invest in their own country. While Qatar was, and still is, out buying large chunks of Paris and Porsche, Dubai quietly bought into its own future. Now that the UAE government is engendering hundreds of the biggest projects in the world, it may be time for them to begin thinking about a state assisted scheme to finance their own projects outside of infrastructure. Matthew Martin is a banking expert from MEED Insight, which has a particular focus on project-related market data. He explains why project finance is becoming more unpopular with banks: “It’s quite expensive for banks to get involved in project finance. With long term projects they can only charge low rates because their risk is very low. You have to tie up a lot of your capital for a small gain.” “At the moment demand is outstripping supply for project financing. International banks are finding problems of their own, with write offs and other problems.” He is not all downbeat though, “The right project will always find financing but it is the fringe projects which will struggle more.” “It’s fair to say that banks still see contractor finance as attractive as it tends to be relatively short term, around three years maximum, attractively priced, and carries few payment risks as ultimately most developers are government or government-linked.” “The risks that banks do end up having to deal with are usually more related to the performance of the contractor. It must be said that the appetite for real estate is less than it was before the crisis.” Clearly, there are growing constraints and an increasing gap between the terms on which banks are prepared to lend and what sponsors expect. The number
47
FINANCE Contracting
“Although a core group of banks will continue to offer project finance, aggregate capacity will continue to be eroded”
from export credit agencies (ECAs): “The Sadara Chemical project has $12.4 billion debt, of which $6.7 billion is coming from ECAs. Only around $1.5 billion is expected to come from commercial bank loans. This then creates an opportunity for the sukuk market.” Ravi Suri, Standard Chartered’s Dubaibased head of project and export finance for the Middle East, Africa, South Asia and Europe recently said that he saw more business coming his way due to the fact that Middle East and Africa project finance loans are set to rise almost 15% to about $40 billion this year. This money will go into petrochemicals, power and metals production, because: “infrastructure demand is going to be significant.” “Power and desalination will be huge,” says Suri “You will have petrochemicals, you’ll have infrastructure, roads, solar, renewables will perhaps play a big role.” Governments in the six-nation Gulf
MARCH 2013
MIDDLE EAST
of banks interested in project finance lending is also dwindling or they are focusing on other markets, where pricing is higher. Most major US banks are now largely absent from the regional project finance sector. In fact, most are understood to be winding down their teams of project finance specialists. It is a problem about which the region’s largest project sponsors are becoming concerned. “Although a core group of banks will continue to offer project finance, aggregate capacity will continue to be eroded,” says Jamal al-Rammah, treasurer at Aramco, at an event in Dubai in January 2013. Ali Tahir Jaffery, director of project and export finance at Standard Chartered sees changes: “One thing we have noticed is that European banks have pulled away from the market, particularly French banks, which historically have been among the biggest lenders.” Even in Saudi Arabia, where bank liquidity has been high over the past two years and competition to lend intense, there are signs that enthusiasm may be waning. Almost half of the $8.5 billion raised in 2012 was in Saudi Arabia, much of that coming from local banks. So contractors are being pushed down to the floor on costs and more contractors are tendering for each project. Now here is the bad news. Most bankers agree that pricing needs to start going up to attract more lenders and make deals more profitable. There are signs this could be happening in 2013. The $4.6 billion financing for phase two of the Emirates Aluminium (Emal) project at Taweelah was oversubscribed, but pricing for the deal was relatively high, starting at 250 basis points above the London interbank offered rate (Libor) and peaking at 325 basis points. During the course of putting the bank group together, pricing was actually increased. Let’s repeat that in case your tears actually stained the page and made it hard to read. During the course of putting the deal together the bankers actually put their prices up while they were raising the money. And they wonder why they are unpopular. Jamal al-Rammah points to other opportunities such as rising contributions
49
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FINANCE Contracting
Major 2012 financial deals In June 2012, Egypt’s $3.7 billion Mostorod refinery reached financial close. It was a remarkable achievement that in many ways broke the established rules of the sector. Not only was it the largest project to secure funding in the region during 2012, it occurred against a backdrop of continued political uncertainty in the country, following the revolution of early 2011. It also came at a time when Egypt’s finances were deteriorating and its economy stagnating. In total, there were just $8.5 billion of project finance transactions closed in 2012 across the GCC and Egypt. That was down from $23 billion in 2011 Saudi Binladin Group signed a $2.3 billion loan deal in November 2011,
are raising interest as fast as possible. All finance and all economies are cyclical. In the late 1980s in Britain there was a massive boom. But after boom, inevitably comes bust. Dubai has never been known for a cautious approach to anything, and certainly not to finance. During the boom years banks in Dubai were practically begging people to borrow money at every level. In the last few years Dubai has had a salutary lesson. But one thing is true – people have short memories. It is likely that finance may become easier again for construction. But if it does, it is unlikely to be funded from Europe or America for the foreseeable future. What is likely to fill the gap is the advent of project bonds to fund infrastructure projects, MENA bond sales jumped 54% last year to a record $49 billion, data compiled by Bloomberg shows. There is also the growing Islamic finance sector that will fill in some gaps in the funding market. You may recall that there are three parts to the Chinese curse that has provided the backbone of this article. The third part is: “May you find what you are looking for.” This is sometimes quoted as “May your wishes be granted.” Those contractors trying to raise finance may now be ferverently wishing for the last part to come true. n
the loan was used to finance the Jeddah airport project. Construction company Saudi Oger finalised a $2 billion loan deal fund the development of police training facilities in the kingdom. The deal was arranged by Germany’s Deutsche Bank. In August 2012 a consortium led by Turkey’s TAV completed a $1.1 billion contractor financing deal for the construction of the Midfield Terminal at Abu Dhabi airport.
MARCH 2013
MIDDLE EAST
Cooperation Council are investing oil wealth in more than $1 trillion of projects, including schools and roads in Saudi Arabia and stadiums to host the 2022 FIFA World Cup in Qatar. Projects set to raise money in 2013 are Saudi Arabian Oil Co and Dow Chemical Co’s $20 billion Sadara Chemical Co joint venture and Emirates Aluminium’s $4.58 billion expansion. Almost 80% of the Middle East project finance pipeline this year will be denominated in foreign currencies because interest rates on dollar funds are lower than those on local currencies, Suri said. Companies also prefer longermaturity funding in dollars “due to the inability to hedge long-term in other currencies,” he said. The three-month Saudi Interbank Offered Rate, the benchmark used by banks in the Kingdom to price some loans, jumped 22 basis points last year, the biggest advance since 2005, to 0.995%. The jump, which happened as loan growth accelerated at the fastest pace in more than three years, tripled the spread over the equivalent US rate to 69 basis points, or 0.69 percentage points. Possibly the most telling thing Suri says is this: “Interest rates may trend up marginally this year because of the strong demand for loans.” Did you spot that? The moment a recovery even begins the banks
51
TIME & MONEY TREMCO-ILLBRUCK
bigprojectME.com
Helping you make the smartest decisions
Unbreakable
Bond
Big Project ME talks to Stuart Wakeham of TremcoIllbruck about how the PU700 adhesive can help contractors save time and money during the brick work phase of construction Applications of PU700 Bonding between stone-like materials:
n Bricks n Limestone n Cellular concrete n Gypsum blocks n Concrete
52
MIDDLE EAST
n Natural stone
MARCH 2013
O
ften considered to be one of the most time consuming aspects of building, the traditional method of brick and block laying sees each layer carefully plastered with an even layer of mortar. When the wall is complete, contractors are forced to wait till the mortar dries out and hardens before they can proceed further with the structure. Very often, this process takes up to 24 hours, which is a life-time when you’re trying to meet deadlines with little room for leeway. Keeping in mind the need for speed and efficiency, Tremco-Illbruck has developed a masonry adhesive that it believes will be perfect for the regional construction industry. BPME speaks to Stuart Wakeham,
sales director for Termco Illbruck in the Middle East and Africa region. What is PU700 about and why is it relevant to the regional construction market?
Basically it’s polyurethane foam that, rather than expanding like most PU foams do, actually collapses once it’s been applied to the surface of the substrate. It’s basically an adhesive used to bond brick work or block work together. In other words, it’s a replacement for sand-cement mortar. The PU700 is a product that really grabbed our attention here in the Middle East. It’s a very innovative product and
TIME & MONEY TREMCO-ILLBRUCK
we’re quite excited by its potential for saving ‘time and money’ (for contractors). With the type of construction taking place in Dubai (for example), there’s a lot of high-rise construction and a lot of internal walls. You’ve got to take sand, cement and water all the way up your building. With this product, you can take a box of PU foam, spray it on and the job is done. How does the product work?
“In terms of weight, mess, doubling handling and so on, plus the actual laying of brick and block works; you can actually increase the speed of laying them by about 50% by using this material”
How environmentally friendly is the product?
Product advantages
What has the response been like from the regional market?
We’ve really just started in the Middle East. The initial interest came from a company in Bahrain that manufactures pre-fabricated buildings in its factory. They recognised the potential (of the product) immediately and they’re very keen to begin distribute it to other builders and so on. In Dubai, as I said, we’ve only started recently, but we’re already getting quite a lot of interest. So for me, the market has got a lot of potential and in this environment, it works particularly well.
There are two aspects to that question. Firstly, it’s a material made in Holland, which is at the heart of the European Union. They have very strict controls on the chemicals that we can use. It’s a material that doesn’t consist of CFC’s and is relatively harmless. The other consideration is that by using it instead of traditional processes, you’re actually saving other areas, natural uses and so on. To me, where it really suggests itself is in high rise construction. The nature of the construction industry here is very fast track. So anything that saves time, saves mess, and simplifies things, really is a massive selling point for us. Not only does this product work exceptionally well, but it also brings the benefit of a lot of time saved. And with time saved, comes cost saving.
n Quick application n Clean application n Fast curing 10 minutes v 24 hours for traditional mortar
n Less weight and less transport 1 750ml can = 25KG mortar/8 litres water
n No electricity and water needed for preparing the mortar
n Ideal for building walls in small rooms or high rise construction
n Easy for the professional user and for the DIY user
n Lay 1600 blocks per day v 700 per day using traditional mortar
n No waste n Far stronger bond than traditional mortar – stronger than the cohesive strength of the block itself
MARCH 2013
MIDDLE EAST
It’s a pretty unique product in terms of time saving. A 25KG bag of mortar will need more than eight litres of water and then whatever else you want to add. So it is a massive lead in. But one canister of PU700 replaces that 25KG of mortar. In terms of weight, mess, doubling handling and so on, plus the actual laying of brick and block works; you can actually increase the speed of laying them by about 50% by using this material. It’s very simple to use, the canister comes with a gun that lets you spray it. If it’s a wide block, there’s also a gun with two spouts. You literally spray the material on and place the block. With sand-cement mortar, you have to wait at least 24 hours before you have any strength in the mortar at all. With this material, within 10 minutes, the bond is absolutely finished and very strong. To the extent that if you apply any load to the joint, then the block work is more likely to break before the joint will.
53
COMMENT trends
bigprojectME.com
Saeed Alabbar
Top Sustainability Trends in 2013 Saeed Alabbar, director at AESG, shares his insights into what he believes will be the top sustainability trends for the construction industry in 2013
T
he Middle East has often been criticised for its excessive consumption of resources as was confirmed by a 2012 Living Planet Report which named Qatar, Kuwait and the UAE as the top three countries having the largest per capita ecological footprints in the world. The situation is ripe for change and developers across the region are now giving serious thought to the impact of sustainability and green construction concepts on their profits and cost savings targets. After steady growth through 2012, the Middle East construction market looks set to once again regain the momentum of the pre-recession era. Experts predict $4.3 trillion worth of construction projects across the MENA region over the next decade, representing a growth of 20% through 2020. Now taking centre stage in discussions within the industry is the issue of sustainable construction. As far as new projects are concerned, there is still a lot of work that needs to be done in translating good sustainable designs into sustainable buildings. For a number of projects in the region, lack of quality control in construction or poor commissioning have resulted in great intentions on paper
54
MIDDLE EAST
“As massive infrastructure projects are due to get underway, developers will be keen to look at innovative means to reduce the energy impact both during construction and operational phases”
MARCH 2013
not transpiring into reality. With regard to the existing building stock, whilst an increasing number of facility and building owners are looking to manage their energy and water consumption more effectively, this only accounts for a fraction of the existing building stock in the region. While sustainability has been a buzz word in the industry for a number of years, we are now definitely witnessing a genuine drive of new development projects in pursuing increasingly higher levels of sustainability. This is driven partly by regulation but also due to developers realising that sustainability offers a genuine opportunity to increase the value of their assets and also ensure that their assets are future-proofed Throughout the region there is a commitment from governments to invest in social and commercial infrastructure. In order to increase the financial efficiency of these projects both during construction and operation, government agencies are increasingly turning to sustainability and energy efficiency as a means of reducing the lifecycle costs of these buildings. AESG has been working closely with a number of public sector clients on projects that include major ports, airports, schools and government buildings. The results of these efforts have led to reductions in government spending on utility bills and infrastructure which ultimately translates to freed up revenue for more ‘constructive’ purposes. As massive infrastructure projects are due to get underway during 2013, developers will be keen to look at innovative means to reduce the energy
COMMENT trends
however, we are likely to see an increasing number of developers choosing to utilise commissioning agents on projects to ensure a more effective transition between design, construction and operation stages of projects. Commissioning agents will be increasingly called upon to identify potential savings in capital costs for clients by better optimising designs and streamlining the testing and commissioning process, such that building owners receive a better functioning building at the start of operation. Due to recent increases in utility tariff’s, the economic downturn and a greater focus on energy and sustainability issues, facility owners and operators are paying greater attention to their utility bills. Conducting detailed energy audits of facilities has shown that buildings can save approximately 20% of their energy bill through low to no cost measures alone, that all pay back within 12 to 18 months with an Internal Rate of Return (IRR) upwards of 40%. As far as investment decisions go this is a no-brainer and during 2013, building owners are likely to realise this and take measures to reduce their energy consumption. While these trends only scratch the surface of green building, they are indicative of the positive direction in which the industry is heading. 2013 looks poised to be a year for massive growth of the green building market and the onus is now upon facility owners and managers, and architects and design teams to ‘think green’ lest they find themselves in the red. n
impact of these constructions both during construction as well as operational phases. Traditionally in the Middle East, commissioning of buildings has not been carried out effectively which has resulted in many buildings performing poorly during operation and therefore requiring frequent maintenance. Judging by the feedback through 2012
Saeed Alabbar is a Director at AESG, a firm specialising in the provision of energy and sustainability consultancy in the Middle East. He holds a First Class Masters degree in Mechanical Engineering from the University of Bath and is a LEED Accredited and Estidama Qualified Professional.
MARCH 2013
MIDDLE EAST
Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com
57
SPECIAL FEATURE drywalling
bigprojectME.com
Last wall of
defence
Big Project ME finds out how properly rated fireresistant dry walling can help save lives and protect property. Gavin Davids reports
D
58
MIDDLE EAST
peter robinson
MARCH 2013
ry walling as a construction technique has been around since the 1800s, when the Sackett Board was invented by Augustine Sackett and Fred Kane. That original design featured layered plaster and wool felt paper, which was most definitely not fire rated. As the 20th Century came along, the need for fire safety increased as the population in the world’s major cities began to explode. This led to increased demand for affordable construction materials that had a modicum of fire safety. Enter the Gypsum board, which evolved between the 1910s and 1930s as an efficient and affordable material to build interior walls and ceilings. Not only is Gypsum still in use, it has become the material of choice for contractors, especially given the inherent
fire-resistant qualities of gypsum, says Jason Hird, technical manager at Gyproc Middle East and a specialist in fire safe lightweight construction. “During processing of the gypsum into board, it is converted into CaSO4 2H2O, or calcium sulphate dihydrate, by the addition of water, which becomes ‘locked’ into the crystals.” “When exposed to flame, this water is then gradually released, reducing the rate of temperature rise and increasing the fire insulation qualities of the structure,” he explains to Big Project ME. With the issues of fire safety never higher on the UAE’s agenda, the need to examine all facets of fire resistance and prevention becomes vital, and the use of fire-resistant dry walling should be discussed at all levels, points out Peter Robinson of Saint Gobain.
SPECIAL FEATURE drywalling
it’s fair to say that simply installing fireresistant dry-walls won’t stop property damage in the event of a fire, it can certainly add an extra layer of protection that could make a crucial difference in saving lives and property. “There is a common misconception when considering drywall systems that fire performance is simply down to the lining board, one layer for 30 minutes protection; two layers for 60 minutes and so on, and that just adding another layer of board will increase the fire performance of a system from say 30 minutes to 60 minutes,” explains Hird. “Unfortunately it is just not that straightforward. How any lightweight structure performs in a fire is down to a complex interaction of all of the components of that structure?” “It is the performance of the weakest component that defines how the overall
“Dry-lining can perform in areas such as impact, moisture and thermal resistance, depending on requirements”
structure will perform,” he says, breaking things down simply. “The fire performance of a nonload bearing partition or ceiling can be defined as its ability to withstand exposure to a standard temperature, over a given period of time, without loss of fire separating function,” “It is divided into two elements: fire insulation, which refers to the ability of the structure to prevent temperature rise to the ‘cold’ face (the face not in direct contact with the flame), and fire integrity, which refers to the ability of the structure to remain intact and therefore prevent the passage of flame,” he sums up. n
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“Dry-lining or Dry-wall (as it’s known in America) usage isn’t widespread in the Middle East,” he says. “But it is used in some projects based on a need for a faster build programme and due to the improvements in performance (not just fire, but also acoustics). Dry-lining systems can perform in areas such as impact, moisture and thermal resistance, depending on the requirements of the building.” “There are other site advantages, such as less space usage and logistics on site, which ultimately leads to more saleable or leasable floor space,” Robinson adds. “But what limits the use of drylining in the region is not only a lack of understanding, but also a lack of regulations driving the need for standardised performance levels in fire, acoustics and thermal performance across the region.” This lack of understanding can have serious consequences as recent events across the region have shown. Although
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SPECIAL FEATURE SANITARYWARE
bigprojectME.com
Water, water
everywhere Water is scarce and desalination is expensive, thankfully advances in infrastructure and sanitaryware are helping us to keep hold of this precious resource
A
bout 70% of the earth’s surface is covered in water and the four major oceans - the Pacific, Atlantic, Arctic and Indian Ocean hold about 96.5% of all the Earth’s water. So that’s a lot of water right? Well, yes and no. In fact the amount of fresh water in the world is considerably smaller than you would imagine, as our illustration shows. Now think about the UAE, a land of lush greenery, ice skating, ski slopes, water parks and infinite ice cubes. In a desert.
Environmentalists warn the country, already reliant on costly desalination plants, must cut consumption by its 8.2 million people or risk-depleting groundwater resources in 50 years. “We need to convince them that water here isn’t a free resource. It’s not even a natural resource, it is manmade. It is costly, and it has a big environmental impact,” said Mohamed Daoud of the state-run Environment Agency in Abu Dhabi. So how much do we get through? Abu Dhabi consumes 550l of water per
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MIDDLE EAST
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person per day, two or three times the world average of 180-200l. Analysts say per capita water use in the UAE overall is roughly four times that of Europe. And Europe is blessed with abundant natural precipitation. To ease groundwater use, about 60% of consumption in the desert country, the UAE has invested heavily in desalination, producing 9 million cubic metres of water daily, at a cost of $18 million per day. And desalination dependence is a huge luxury that only oil-rich Gulf
SPECIAL FEATURE SANITARYWARE
“We need to convince them that water here isn’t a free resource. It’s not even a natural resource, it is manmade. It is costly, and it has a big environmental impact”
Water efficiency Water-saving fixtures can save homes thousands of gallons.
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countries can afford: It requires huge amounts of fuel and sea water. Dubai is completely reliant, while Abu Dhabi’s use more than tripled between 1971 and 2007, the Emirates Wildlife Society said. The growth in both emirates would have been inconceivable without the use of desalinated sea water. If you think about it logically you quickly realise two things: that our major use of water is based in sanitation, a bath can use between 25 and 340 gallons. We also flush the toilet every time we use it, and leave the tap running when we clean our teeth. And there are lots of us and we all do it. We wondered how much water could be saved by making our sanitaryware more efficient? Probably the biggest use of water is just by using the bathroom, and then we have to recycle both the water and the human waste. If all of us were using less it would add up to a substantial saving. Suddenly saving water is getting trendy. Vacuum maker Dyson has just announced a new water faucet and hand dryer in the same unit, it is known as the Dyson Airblade. But the traditional manufacturers are more concerned with infrastructure of water saving. Geberit is the market leader in sanitary technology. They invest a lot in R&D to provide water solutions to reduced consumption and thus the carbon footprint of their products. They reduce water consumption through advanced development of their flush systems. In 2010 alone the entire flush-stop and dual flush
cistern fleet enabled water saving of no less than 1,500 million m3. The largest daily user of water in the home is the toilet. If all US households installed water-saving features, water use would decrease by 30%. This would save an estimated 5.4 billion gallons of water per day, resulting in daily dollar-volume savings of $11.3 million or more than $4 billion per year. Water-efficient fixtures installed in US households in 1998 alone saved 44 million gallons of water every day, resulting in total annual dollar-value savings of more than $33.6 million. Now put that into perspective – an average US household water use is 27,400 gallons a year. This gives an average daily household water use of 350 gallons. An Olympic-sized swimming pool, with a depth of 2m, contains 2,500,000l or 550,000 gallons of water. So the average house uses the same amount of water as an Olympic pool every two decades. According to Matthew Green of CBRE, and he should know, there are 415,000
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SPECIAL FEATURE SANITARYWARE
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“reduce the volume of water by shortening pipe runs, insulating efficiently and making sure that fixtures are fit-for-purpose”
dwellings in Dubai and 230,000 in Abu Dhabi. So if you take US consumption that is 225,750,000 a day. But as mentioned above the UAE population of roughly 8 million uses an average of 120 gallons a day. This is 960 million gallons a day, or 1,750 Olympic pools every single day of the year. Architects can reduce the volume of water by shortening pipe runs, insulating efficiently and making sure that the taps and sanitary fixtures are fit for purpose. But sanitaryware manufacturers have the
high usage UAE’s population uses an average of 120 gallons a day.
most to gain from making their product use less water. Simply put this saves money and architects will always try to choose the most efficient fixtures. Geberit are on the case already with theit electronic lavatory taps Types 185 and 186. However, environmentally friendly products that reduce water consumption have been available for a number of years already. Theses taps ensure economical watersaving consumption thanks to their control electronics. Starting in spring 2012, a new generator unit will use the energy of the flowing tap water to generate the required electricity, thus making electronic taps independent of mains current or batteries. Geberit’s entire fleet of cisterns produced since 1998 has saved about 12,000 million m3 of water in comparison with traditional flushing systems. In 2011 alone, the water saved amounted to 1,700 million m3 – more than half of the annual consumption of all German households. Grohe are also on the case of water saving. Sharbatly Mosque is one of the largest in Jeddah and due to the high footfall of visitors, experiences high rates of water consumption. New Grohe fittings will enable them to make considerable water savings to the benefit of both the mosque and the environment, whilst raising awareness about the importance of water conservation. Over 40 self-closing faucets were installed in the women’s and men’s ablution rooms. Buying bottled water is a fairly recent phenomenon. Now it’s a multi-billion dollar industry. Consider this: In Kuwait bolted water costs exactly twice what petrol does. Water is our most precious resource and it is the efforts of manufacturers like those mentioned in this piece that will help ensure its future. n
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n $18 million
Amount it costs daily to run the UAE’s desalination plants
n $4 billion
Amount saved annually if all US houses installed water saving features
n 50 years
Estimated time left for UAE water reserves
n 120 gallons
Water consumed on average, on a daily basis by UAE residents
n 8 million
Number of residents in the UAE
WATER SAVING • ENDURANCE • HYGIENE SAFETY • ACCESSIBILITY COMMERCIAL WATER CONTROLS Electronic mixers, taps and showers Time flow mixers and showers Thermostatic mixing valves Frame systems
HOSPITAL WATER CONTROLS Mixers and taps for healthcare professionals Mixers and taps for patients Safe temperature controlled hot water delivery Innovative, hygienic solutions for healthcare
ACCESSIBILITY HYGIENIC ACCESSORIES Grab bars and rails Shower seats Hygiene accessories for commercial and public places Accessories for washrooms and showers
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Budget $200,000,000 Client New Medical Centre Group – NMC (Abu Dhabi) Region Abu Dhabi, UAE
PROJECT NAME: Mixed use Tower Project 6
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Budget $200,000,000
Client Nakheel PJSC
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Region Dubai, UAE
Region Amman, Jordan
Description Construction of Nakheel Mall comprising five levels of retail, a roof-top plaza with fine dining restaurants, a Butterfly Park, including a 300 room, 40 storey five-star hotel with a roof-top restaurant, swimming pool and lounge.
Description Construction of 36-storey mixeduse tower comprising a five-star hotel, an eight-level podium containing high-end retail units and office space.
Status Current Project
Status New Tender
Status Current Project
Project name: Salalah International Medical City Project
Budget $1,000,000,000 Client Apex Medical Group (Saudi Arabia) Region Salalah, Oman
Budget $45,000,000
Description Construction of an International Medical City in Salalah comprising facilities such as a state-of-the-art diagnostic centre, a healthcare resort and healthcare education complex, including a luxury hotel and wellness centre.
Client Seef Properties
Status New Tender
Project name: Muharraq Seef Mall Project
Region Bahrain Description Design and construction of Muharraq Seef Mall comprising two floors offering approximately 30,000 sqm of retail space with ample parking underneath on the ground level, including an open air amphitheatre.
Status Current Project
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Project name: Nakheel Mall Project - Palm Jumeirah
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.
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 UAE  Water Discus Underwater Hotel Project
Project Number BIP055-U City Dubai Client Name Dubai Drydocks World Postal/Zip Code 8988 Country United Arab Emirates Phone (+971-4) 345 0626 Fax (+971-4) 345 0116 eMail drydocks@drydocks.gov.ae WebsitE www.drydocks.gov.ae Description Construction of Water Discus Hotel comprising two discs - one under the water and one suspended above the water. Period 2018 Status New Tender Tender Categories Construction and Contracting, Hotels, Marine Engineering Works and Seaports Tender Products Hotel Construction, Marine Civil Works
Retail & Residential Area Development Project - Al Maryah Island
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Project Number BIP013-U City Abu Dhabi Client Name Gulf Capital Pvt. JSC (Abu Dhabi) Address Al Sila Tower, 25th
MARCH 2013
Floor, Sowwah Square, Al Maryah Island Phone (+971-2) 671 6060 Fax (+971-2) 694 2703 Email info@gulfcapital.com Website www.gulfcapital.com Description Development of a retail and residential area on Al Maryah Island (formerly Sowwah Island). Status New Tender Tender Categories Construction & Contracting, Hotels and Leisure & Entertainment Tender Products Hotel Construction, Residential Buildings and Retail Developments
Dubai Adventure Studios Project - Phase 1
Project Number BIP015-U City Dubai Client Name Meraas Development (Dubai) Phone (+971-4) 511 4900 Fax (+971-4) 332 2707 Website www.meraas.ae Description Construction of Dubai Adventure Studios comprising a state-of-the-art, moviebased theme park hosting several major US-based brands, with new generation integrated rides and latest technology attractions, as well as hospitality, food and beverage, and retail areas for high value family entertainment. Period 2015 Status New Tender
Tender Categories Construction & Contracting, Leisure & Entertainment Tender Products Theme Parks Development
The Address: The Boulevard Tower Construction Project Downtown Dubai
Project Number MPP2695-U City Dubai Client Name Emaar Properties PJSC (Dubai) Address Emaar Business Park, Bldg. No. 3, Near Interchange No. 5, Shaikh Zayed Road
Postal/Zip Code 9440 Phone (+971-4) 367 3333 Fax (+971-4) 367 3000 Email enquiry@emaar.co.ae Website www.emaar.com Description Construction of 340-metre, 63-storey The Address The Boulevard Tower comprising a 5-star hotel and serviced apartments consisting of studios, one-two-three and four-bedroom apartments. Status Current Project Design Consultant Atkins International (Dubai) Main Contractor Brookfield Multiplex Constructions Middle East L.L.C (Dubai) Tender Categories Hotels, Leisure & Entertainment, Prestige Buildings
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OMAN Al maghseel resort project
Project Number BIP059-O Client Name Al Maghseel Resort Project City Muttrah PC 114 Postal/Zip Code 479 Country Oman Phone (+968) 2477 3700 Fax (+968) 2479 3929 eMail enquiries@omran.om Website www.omran.om Description Development of a resort in Al Maghseel area along a scenic beachfront swath offering adventure, recreation and leisure pursuits, as well as family-oriented entertainment. Status New Tender Tender Categories Construction and Contracting, Leisure and Entertainment, Hotels Tender Products Construction and Addition Works, Gardens/ Park Development and Maintenance, Hotel Construction, Retail Developments
Al Buraimi University Campus Project
Project Number BIP033-O Client Name Ministry of Higher Education Address Room 310, Third Floor, Alia Centre, Al Khuwair City Ruwi 112 Postal/Zip Code 82 Country Oman Phone (+968) 2469 3148 Fax (+968) 2469 3138 eMail info_dept@mohe.gov.om
Website www.mohe.gov.om Description Construction of Al Buraimi University Campus comprising buildings for administration, teaching staff, three colleges, laboratories and foundation programme. Period 2014 Status Current Project Main Contractor Larsen & Toubro (Oman) L.L.C Tender Categories Construction & Contracting, Education & Training Tender Products Construction & Addition Works, Educational Developments
Jasmine Residential & Commercial Complex Project
Project Number WPR014-O Budget $39,000,000 Client Name Taameer Investment Company (Oman) Address Al Khuwair, Business Centre, 5th Floor, Office No. 508 Postal/Zip Code 1244 Country Oman Phone (+968) 2448 8871 Fax (+968) 2448 8872 Email info@taameerinvest.com Website http://www. taameerinvest.com Description Development of Jasmine Complex comprising residential and commercial facilities. Period 15/11/2013 Status Current Project Main Consultant Arab Engineering Bureau (Qatar) Financial Consultant Ahli Bank (Oman) Financial Consultant-1 Bank Muscat S.A.O.G (Oman) Main Contractor United Golden Construction Company (Oman)
Tender Categories Construction & Contracting, Leisure & Entertainment Tender Products Commercial Buildings, Residential Buildings, Retail Developments
QATAR Workers Hospitals & Health Centres Construction Project
Project Number MPP2729-Q Client Name Private Engineering Office (Qatar) City Doha Postal/Zip Code 23723 Country Qatar Phone (+974) 4443 4857 Fax (+974) 4443 6291 Description Construction of 3-storey, 120-bed hospitals and single-storey health centres. Closing Date February 17, 2013 Status New Tender Tender Categories Construction & Contracting, Medical & Healthcare Tender Products Hospital Construction
Labour Compound Project Project Number BIP021-Q Client Name Ecisa Compania General de Construcciones SA (Spain) Address Avda Costa Blanca 139, Playa de Sant Juan Country Spain 03540 Phone (+34-96) 526 2522 Fax (+34-96) 526 4398 Website www.ecisa.es Description Construction of a labour compound comprising a total of (15) buildings consisting
of (816) bedrooms, (24) kitchens, leisure areas and all necessary services, including a mosque, a car washing facility, an administration area and a workshop. Budget $53,000,000 Period 2016 Status Current Project Main Contractor Harinsa Contracting Company W.L.L (Qatar) Tender Categories Construction & Contracting Tender Products Construction & Addition Works, Residential Buildings
Smart Power Grid Project
Project Number BIP032-Q Client Name Qatar General Electricity & Water Corporation (Kahramaa) Address Corniche Street, Number 61, Sheraton Roundabout, Dafna Area City Doha Postal/Zip Code 41 Phone (+974) 4484 5484/ 4484 5555 Fax (+974) 4484 5496 Email contactus@km.com.qa Website www.km.com.qa Description Implementation of a pilot project to introduce a smart power grid system with capacity to produce 3-5 megawatts and about 500 cubic metres of water. Status New Tender Tender Categories Power & Alternative Energy Tender Products Electric Power Transmission & Distribution, Geothermal Energy, Photovoltaic Plants, Power Generation Plants, Solar Energy, Wind Energy
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Tender Products High-rise Towers, Hotel Construction
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SAUDI ARABIA Al Bayt 57 Mixed-use Development Project
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Project Number ZPR886-SA Client Name Al Bayt Development Company (Saudi Arabia) Address Khorais Road Post code 92151 City Riyadh Phone (+966-1) 212 2222 Fax (+966-1) 212 3333 Email info@al-bayt.net Website http://www.al-bayt.ne 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
MARCH 2013
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a Galleria retail mall covering 25,000 square metres. Period 2015 Status New Tender Design Consultant Dewan Architects & Engineers (Saudi Arabia) Tender Categories Construction & Contracting, Hotels, Leisure & Entertainment, Prestige Buildings Tender Products Commercial Buildings, High-rise Towers, Hotel Construction, Residential Buildings, Retail Developments
Manufacturing Facility & Training Centre Project King Abdullah Economic City - Phase 1
Project Number BIP030-SA
Client Name Johnson Controls International (Saudi Arabia) Address Salahuddin Ayoubi Road Intersection with Ezzat B, York Bldg. City Riyadh 11516 Phone (+966-1) 477 7442 Fax (+966-1) 479 0293 Website www.johnsoncontrols. com.sa Description Construction of a manufacturing facility to produce a range of products for residential, commercial and industrial sectors, including construction of a training centre. Budget $67,000,000 Period 2014 Status New Tender Tender Categories Construction & Contracting, Industrial & Special Projects Tender Products Construction & Addition Works, Industrial Zones,
Pharmaceutical Manufacturing Plants
KUWAIT High-Pressure Crude Oil Pipelines Construction Project
Project Number MPP2575-K Client Name Kuwait Oil Company (KOC) City Ahmadi 61008 Postal/Zip Code 9758 Phone (+965) 2398 9111 Fax (+965) 2398 3661 eMail kocinfo@kockw.com Website www.kockw.com Description Engineering, Procurement and Construction (EPC) contract to build highpressure crude oil pipelines. Budget $258,000,000
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LEBANON Sidon Drug Rehabilitation Centre Project
Project Number BIP056-LE Client Name Sidon Municipality (Lebanon) Address Star Plaza, Municipal Palace City Sidon Phone (+961-7) 720 062 Fax (+961-7) 727 117 eMail info@saida.gov.lb Website www.saida.gov.lb Description Construction of a Drug Rehabilitation Centre in Sidon Status New Tender Tender Categories Construction & Contracting, Medical & Healthcare Tender Products Construction & Addition Works, Hospital Construction
Lebanon Waterfront City Phase 1 Project Name BIP042-LE Client Name Majid Al-Futtaim Group (Dubai) Address Majid Al Futtaim Tower, Deira City Center City Dubai
Postal/Zip Code 60811 Country UAE Phone (+971-4) 294 9999 / 294 2444 Fax (+971-4) 209 3499 eMail inquiry@mafgroup.co.ae Website www.majidalfuttaim.com Description Development of Lebanon Waterfront City, a masterplanned mixed-use community comprising six towers, various pedestrian plazas and a lively marina promenade - Phase 1. Period 2015 Status New Tender Tender Categories Leisure & Entertainment, Construction & Contracting, Marine Engineering Works & Seaports Tender Products Community Development, Construction & Addition Works, Marina Development, Mixed-use Developments, Residential Buildings and Retail Developments
LIBYA Nafoora & Amal Fields Crude Oil Pipeline Construction Project
Project Number MPR1401-LI Client Name National Oil Corporation - NOC (Libya) Address Bashir Saadawi Street City Tripoli Postal/Zip Code 2655 Phone (+218-21) 46180 Description Construction of a 24-inch, 55-kilometre crude oil pipeline with a capacity of 100,000 barrels per day (bpd) to connect Nafoora and Amal Fields. Budget $38,000,000 Status Current Project Main Contractor Wintershall Holding GmbH (Germany) Tender Categories Oilfields &
Refineries Tender Products Crude Transportation, Storage & Distribution, Oilfields Exploration & Development
JORDAN Maan Wind Power Project
Project Number BIP028-J Client Name Ministry of Energy & Mineral Resources (Jordan) Address Mahmoud Al Moussa Abaidat Street, Al Swaifiah City Amman Postal/Zip Code 140027 Phone (+962-6) 580 3060 Fax (+962-6) 586 5714 Email memr@memr.gov.jo Website www.memr.gov.jo Description Engineering, Procurement and Construction (EPC) contract to build a wind farm in the area of Maan with capacity of 65-75 MW. Status New Tender Tender Categories Power & Alternative Energy Tender Products Wind Energy
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 highend retail and office units. Budget $200,000,000 Period 2015 Status Current Project Design Consultant Perkins & Will (USA) Main Contractor Dubai Contracting Company L.L.C. (Dubai) Tender Categories Hotels, Construction & Contracting Tender Products Commercial Buildings, Construction
IRAQ Al Nakheel City Project Phase 1
Project Number BIP036-IQ Budget $5,000,000 Client Name Basra Governorate (Iraq) Website www.basragov.net Description Development of Al Nakheel City featuring housing units, an airport, a seaport as well as industrial and trade facilities. Period 2014 Status New Tender Design Consultant Dewan Architects & Engineers (Iraq) Tender Categories Airport, Construction & Contracting, Industrial & Special Projects, Marine Engineering Works & Seaports Tender Products Airports Development & Management, Industrial Zones, Residential Buildings, Seaports
MARCH 2013
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Period 2015 Status Current Project Main Contractor Mechanical Engineering & Contracting Company (Kuwait) Main Contractor (2) Arabi Enertech (Kuwait) Tender CategorieS Gas Processing & Distribution, Oilfields & Refineries Tender Products Crude Transportation, Storage & Distribution
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DIARY MARCH
Big 5 Saudi 2013 Jeddah Centre for Forums and Events 9 -12 March 2013 The Kingdom of Saudi Arabia’s largest gathering for construction products and services returns from 9 - 12 March 2013. The Big 5 Saudi has doubled in size and attracted 9,922 visitors from 52 countries, a 9.2 % increasing from 2011. New to The Big 5 Saudi will be the dedicated PMV Zone dedicated to plant, machinery and vehicles. This will include a wide spectrum of products from earth-moving equipment, truck mixers, tower cranes and lifting equipment.
Decobuild Expo Centre Sharjah 20 - 23 March 2013 Targeting manufacturers of building and construction materials, interior design consultants, swimming pools and landscaping consultants and contractors, the Decobuild exhibition in Sharjah is aimed at potential owners of residential projects and those who wants to establish a private residential unit, from neighbouring states. Available to them will be all the details of the latest engineering designs and modern interiors, contracting and construction materials trading, as well as lighting and electrics projects.
Eco Construct Expo Abu Dhabi National Exhibition Centre, UAE 16 - 18 April 2013 Established in response to notable developments in building regulations such as Estidama, ecoConstruct Expo is the region’s only event solely dedicated to sustainable building materials and solutions. ecoConstruct Expo will provide the industry with a lucrative sourcing and knowledge platform for the billions of dollars committed to major construction projects within the region. Co-located with the 7th edition of Cityscape Abu Dhabi, ecoConstruct Expo also provides links with the growing real estate market, giving construction professionals and suppliers the chance to meet with developers, financiers, architects and engineers and build profitable relationships for the future.
Saudi Building and Interiors Exhibition Jeddah Centre for Forums and Events 14 - 17 April 2013 Saudi Arabia’s 22nd comprehensive showcase for the building and interiors industry, SBIE is an annual event that caters to more than 25,000 visitors and 500 exhibitors. Almost 50% of the
HAPPENING THIS MONTH... Kingdom’s 2012 budget is allocated for capital investment projects, underscoring the government’s determination to improve critical infrastructure and diversify the economy.
Construction Machinery Show Jeddah Centre for Forums and Events 14 - 17 APRIL 2013 The Construction Machinery Show, organised by Dubaibased publishing house CPI, will team up with well known Saudi Exhibitions organiser, AlHarithy Company for Exhibition (ACE ) to host the event in conjunction with Saudi Building & Interiors Exhibition. This strategic partnership between CPI and ACE will provide visitors with a one-stop shop for all of their construction requirements. The Construction Machinery Show will be the largest heavy construction machinery event in the region. There will be a wide variety of products on show ranging from heavy equipment to machinery and generators including service providers.
International
UNICERA 2013
Tuyap Fair Convention and Congress Centre 27 February - 3 March 2013 The 25th edition of the international ceramics, bathroom and kitchen fair will see thousands of visitors descend upon the Tuyap Fair Convention and Congress Centre to see the latest developments in interior fit-out. The 2012 event saw more than 300 exhibitors participate in a show space that covered 86,000m2. It was estimated that more than 65,000 visitors attended the event, including more than 4,000 foreign companies and trades people.
EURASIARAIL 2013
ISTANBUL EXPO CENTER 7 - 9 March 2013 The fair intends to bring together the government bodies and private sector for rolling stock, infrastructure technology and railway logistics. During the exhibition, there will be conference and seminar programs with the participation of professional speakers related with the sector. The Turkish Ministry of Transport and Communications has provided $66.8bn in the following 12 years to improve high speed train lines and to construct new lines in order to transfer freight and passenger transportation from highways to railway.
MARCH 2013
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MENA 2012
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CONSTRUCTIVE CRITICISM
bigprojectME.com
Positive Signs GAVIN DAVIDS
Gavin Davids on Saudi Arabia preserving its heritage despite its need to grow and develop its infrastructure Regular readers will remember that I’d previously commented on Saudi Arabia’s plans to demolish three of the oldest mosques in Islamic history, all to make way for the expansion of the Masjid an Nabawi in the Holy City of Medina. The reaction to the news has been universally negative, with both Islamic scholars and archaeological experts critical of the decision to destroy a vital part of Islam’s history and culture. Saudi Arabian authorities were asked to reconsider their decision, but it seemed to be of no avail. However, I’m pleased to report that the outcry hasn’t been for nothing, with news emerging from the Kingdom that the Saudi Commission for Tourism and Antiques has announced plans to preserve and redevelop historic Islamic sites, including those in Makkah and Medina.
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“Pakistan needs vital infrastructure to be built as its population explodes rather than a vanity project that serves little purpose to its embattled citizens”
MARCH 2013
Prince Sultan bin Salman, the president of the Commission, has gone on record as saying that these sites ‘reflect the great contributions made by the people of the Arabian peninsula to human civilisation over the years’. He also indicated that the project was being carried out with the blessing of the King and Crown Prince of Saudi Arabia. While vital conservation and educational work such as this continues, I was surprised to see the news that there are plans afoot to build the world’s tallest building in the Pakistani city of Karachi. The proposed project will surpass the likes of the Burj Khalifa in Dubai and the under-construction Kingdom Tower in Riyadh. I do wonder whether the money invested could be better spent. Pakistan needs vital infrastructure to be built as its population explodes and I’d argue that the money would be better spent on building new schools, hospitals and roads. The country and its people have suffered immensely over the last decade and those are the kind of investments in needs, rather than a vanity project that will ultimately serve little purpose to its embattled citizens. n
Burj Al Arab and Jumeirah Beach Hotels, Dubai UAE
ziz International Airport, Saudi Arabia
Tower, Riyadh, Saudi Arabia
Empire Tower, Abu
Jumeirah Lakes Towers, Dubai, UAE
The Riyadh Tower
Marriott Courtyard Hotel, Motor City, Dubai, UAE
RTA Master Plan, Dubai, UAE
Saadiyat Island, Abu Dhabi, UAE
Dubai Metro, Dubai, UAE
Turning ideas into reality Faithful+Gould is turning ideas into reality for some of the highest profile construction projects in the Middle East. As one of the world’s leading construction project and cost management consultancies, we influence every stage of the project from conception to delivery. We specialise in project management, cost management and construction consulting advice ensuring your big idea becomes a tangible working reality.
For Faithful+Gould to be at the core of one of your projects visit
fgould.com
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