News
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NOVEMBER 2010
PLUS Riyadh developments Is BIM the future? RETROFIT FOR PROFIT
THE BIG 5 2010 guide ARCHITECTURE n ENGINEERING n CONSTRUCTION n PMV PUBLICATION LICENSED BY IMPZ
GCC POWER PROJECTS The region’s top construction developments driven by increasing energy consumption
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News
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NOVEMBER
Contents REGULARS Editor’s letter 4
10
News bulletin 6 Event insider 10
Exclusive news from Cityscape 2010
News analysis 14 Why it’s crucial to retrofit buildngs
In focus 18
Are UAE structures earthquake proof?
Talk 21
Business author Richard Dean on preparing for the upturn
33
Legal matters 22
Al Tamimi outlines five contractual issues to watch out for
Market explorer 33
The key developments driving Riyadh’s economic diversification
Project update 55
Aqaar CEO provides the latest progress update on Ajman 1
Case study 57
52
Esab’s new LEED Platinum facility
Supplier spotlight 64 Hot seat 67 Career ladder 69 Tenders 70 Diary 74 Tea break 78
55
FEATURES 27 GCC power projects
With an estimated US $1.4 trillion worth of GCC power projects underway or in the pipeline, The Big Project looks at planning and funding issues surrounding developments and identifies the region’s top five projects
39 The Big Five guide
40 Exclusive interviews with the organiser’s SVP and event director 42 How to do business in the UAE, as told by the experts 44 The Big 5 map, including The Big Project’s pick of must-see stands 47 HOK regional SVP Daniel Hajjar comments on sustainable design, ahead of his show debut 49 Five minutes with event speaker Yusuf Akcayoglu, Gulf director of TAV Construction 50 Exhibitors tell us they are confident about The Big 5 2010’s business potential
52 The Leaning Tower of Abu Dhabi
A look at the construction technologies and techniques behind the soon-to-be-launched Hyatt Capital Gate’s 18° incline
59 Is BIM the future?
The Big Project weighs up the pros and cons of Building Information Modelling (BIM) to establish whether clients, designers, developers and contractors should be jumping on the bandwagon
76 Contractor of the Year 2010
Al Shafar General Contracting (ASGC) Scoops The Big Project’s Contractor of the Year 2010 award
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Publisher Dominic De Sousa Chief operations officer Nadeem Hood Associate publisher Liam Williams liam@cpidubai.com TEL: +971 (0)4 440 9158 Chief marketing officer Kimon Alexandrou kimon@cpidubai.com TEL: +971 (0)4 440 9149
Big news
W
elcome to November issue of The Big Project, with a new look ready for the fast-approaching New Year, but don’t worry, we’re still bringing you the usual cutting-edge stories and indepth analysis on the Middle East projects market. This month’s cover story looks at the lucrative GCC power projects sector. Growing demand in the region’s downturn-resilient energy market is posing big opportunities for contractors and technology providers, with a number of independent water and power projects under construction and in the pipeline, but is the funding available? Turn to page 27 to find out. As always, Saudi Arabia’s thriving construction industry is making the headlines again. In the second of our three-part KSA market explorer special, we visit Riyadh to uncover the mega-projects the public and private sectors are investing in to diversify the capital’s economy. And as 2010 draws to a close, the region moves into exhibition season. Last month, The Big Project visited Cityscape in Dubai, rebranded as Cityscape Global. We bring you exclusive development stories in our event insider, as well as feedback from guests and visitors. One visitor, an architecture lecturer from Ajman University of Science & Technology, told us she didn’t expect to see as many “iconic developments” coming up in the
Group advertising manager Alex Bendiouis alex@cpidubai.com TEL: +971 (0)4 440 9154 GSM: +971 (0)50 458 9204
UAE compared to the “jungle of iconic structures” erected during the boom-time. However, CEO of the ambitious Dubailand Falconcity of Wonders project, which was exhibited in its full glory at the event, remained undeterred. He said negative press surrounding Dubai’s development market was simply jealousy of the emirate’s success in building some of the globe’s most high-profile buildings in record time. While we’re on the topic of ‘iconic’, don’t miss our ‘Leaning Tower of Abu Dhabi’ feature on page 52, in which we investigate the technologies and strategies behind the soon-to-be-launched Hyatt Capital Gate, tilting 18°. Of course, November also brings The Big 5 back to Dubai, along with thousands of visitors from across the global industry. Get the most out of the world’s third-largest construction show with The Big Project’s The Big Five guide. We catch up with organiser DMG Events, conference speakers, including HOK regional SVP Daniel Hajjar, and exhibitors to discover what is in store. For those coming from abroad, experts reveal how understanding Arab business culture or even knowing your client’s favourite football team could help you secure that big deal at The Big 5. So whether you’re new to the show, new to the region or just as excited as us to see the new-look magazine, read on...
Louise Birchall Editor
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Editor Louise Birchall louise@cpidubai.com TEL: +971 (0)4 440 9118 GSM: +971 (0)56 605 8091 Assistant editor Melanie Mingas melanie@cpidubai.com TEL: +971 (0)4 440 9117 GSM: +971 (0)56 758 7834 Designer Dave Beaver Marlou Delaben Photographer Helen Riley Webmasters Troy Maagma Elizabeth Reyes Jerus King Bation Erik Briones Printed by Printwell Printing Press LLC Published by
Head Office PO Box 13700 Dubai, UAE Tel: +971 (0)4 440 9100 Fax: +971 (0)4 429 3654 Web: www.thebigprojectme.com © Copyright 2010 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
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NEWS BULLETIN The Al Jawhara Tower project in Jeddah.
Growing demand for skyscrapers in KSA
The Palm Jumeirah Monorail will form part of the UAE’s new railway network.
Dubai transport plans will proceed Emirate’s RTA extends deadlines for tram, metro and Palm Jumeirah Monorail extensions Construction of Dubai’s tram, metro and Palm Jumeirah Monorail network will continue under extended deadlines, after the Dubai Roads and Traffic Authority (RTA) announced that no projects will be cancelled. According to reports, RTA rail agency director Abdul Redha Abu Al Hassan said Dubai cannot afford to stop ongoing infrastructure development. “Extension of the Green Line of the Dubai Metro by at least 20km is one of the major transport projects to be carried out in the near future by the Dubai Roads and Transport Authority,” commented Al Hassan.
Included in the pledge was the metro’s proposed Purple Line, linking Dubai International Airport with Al Maktoum Airport in Jebel Ali; a 43km extension of the Green Line to Academic City. Completion of the Al Sufouh trams has been delayed from 2012 to 2014 and will connect to the Red Line of the metro on Sheikh Zayed Road. The AED 3.18 billion network will run 14.5km and have 19 stations, through Dubai Marina, Media City, Mall of the Emirates and the Burj Al Arab. It will also link to the Palm Jumeirah monorail. A transport review by the RTA is currently underway.
Al sufouh trams
2014 the deadline for completion of the al sufouh trams has been extended from 2012 to 2014 according to the dubai rta
Larsen and Toubro’s profits rise 32% India’s largest engineering and construction firm has reported a 32% increase in net profit for Q3 2010 and expects to “maintain the growth for the whole year”. Larsen and Toubro Ltd (L&T) attributed the increase to a 19% rise in engineering and construction revenues and a quicker pace of project execution. The group reports GCC revenues close to US $1 billion in 2009-10.
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The pace of residential office and residential tower construction in Saudi Arabia is increasing to meet a growing demand, according to real estate developers. “What is more, a new vertical smart community lifestyle is emerging, putting into the background the horizontal style of compounds,” Rafal Real Estate Development Co CEO Darwish Bakeer told Arab News. In the case of business complexes, the demand for 21st Century work spaces combining comfort and privacy with optimum efficiency is rising, added Aldar Alkhasa executive partner Essam Fakeeh, whose The Headquarters Business Park project on the Jeddah Corniche is now in its third phase.
Abu Dhabi contractor classifications update
Abu Dhabi’s Department of Economic Development (DED) has modified the contractor classification regulation of 1980 to enable contractors for buildings, roads, sewage facilities and engineering consultancy offices to participate in government and nongovernmental tenders. The move is expected to increase transparency by making information on the financial capability of the consultant or contractor available. The objective is to support the construction industry, one of the “main pillars” of the emirate’s economy, said the organisation.
TDIC invites bids for Abu Dhabi Guggenheim contract Bidders must have completed at least five projects in the UAE over the past three years Abu Dhabi’s Tourism Development and Investment Company (TDIC) has invited contractors to bid for its Saadiyat Island Guggenheim Museum construction contract. An announcement from the government-run developer revealed that the contract covers concrete excavation, filling, waterproofing and construction of up to 4.2 million cubic feet of reinforced concrete slabs, retaining walls, columns and beams. The value has not been released. Prospective bidders must have completed at least five projects in
the UAE over the past three years, each worth more than US $54.3 million. The museum has been designed by Frank Gehry, who also designed the award-winning Bilbao museum. It is planned to be bigger than the Guggenheim buildings in New York, Berlin and Venice, although construction to date has been slower than expected. Located in Saadiyat Island’s Cultural District, the 450,000ft2 building is due for completion in 2013. It will be accompanied by Abu Dhabi’s Louvre, a maritime museum and performing arts centre, among other attractions.
Arabtec expands in Egypt following Dubai losses A contract worth US $53 million has been awarded to Arabtec Holding to deliver Amer Group Holding’s Hanging Gardens. The Golf Porto Sokhna project will be a 2.2 million m² residential mixed-use resort, featuring 726 apartments and Egypt’s only 18-hole mountain-top golf course. The joint project follows a difficult year for the Dubai firm, which has seen a 16.4% decline in share prices, according to Bloomberg. Revenues are expected to fall from $2 billion in 2009 to between $1.5 and $1.75 billion in 2010 and as a result the company is looking
to move into stronger markets. Net profit for Q2 dropped 40%. “This award comes as part of the company’s strategy to diversify geographically outside of the UAE,” chief executive Riad Kamal said in a statement. “The point is to facilitate our entry into the Egyptian market by working with a partner. We aim to be one of the leading contracting firms that can compete in this market,” he added. The Egyptian government says the strength of the industry in Egypt has helped the economy grow by up to 5.6%.
QSAS will be available for new Doha projects.
News
The Saadiyat Island Guggenheim Museum is expected to open in 2013 on Saadiyat Island.
A new code to ensure developments in Qatar meet targets on sustainability has been launched by the Barwa and Qatari Diar Research Institute (BQDRI). According to the group, the Qatar Sustainability Assessment System (QSAS) for Cities and Urban Planning is the “first and only” unified code in the Middle East based on objective performance standards. Managing director Yousef Al-Horr called it: “The GCC’s only sustainable development solution”. “The region needs to establish one single and consistent standard for sustainable development in the construction industry,” commented Al-Horr. During a press conference, head of the Standardisation Department at the Ministry of Environment, Mohamed al Kuwari, said a uniform building code in the GCC would have a positive impact on the economic growth of the region. The code was designed according to local needs, considering social, economic, environmental and cultural conditions, desertification, water scarcity, communication and cultural identity. Criteria falls under eight categories, which are each scored: urban connectivity, site, energy, water, materials, indoor environment, cultural and economic value, management and operations. The system is backed up with a software package, designed to aid planning, calculations and assessment.
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Qatar launches new greenbuild codes
Number cruncher
The Big Project’s monthly breakdown of big numbers in the GCC construction regional news U.A.E.
Growth trend in U.A.E. construction market
Growth
35 30 25 20 15 10 5 0
s
Government in
VALUE (USD bn)
25% 20% 15% 10% 5% 0%
2008 2009 2010 2011 2012 2013
Source | BMI
Source | BMI
Growth trend in UAE construction market According to Deloitte’s GCC construction report.
1 Whilst Dubai is notable for enjoying explosive growth over the past 5 years (26% in 2007 compared to 2006) its decline has also been well documented. Driven by a surge in demand for residential property and the influx of speculators, the bubble finally burst in the 4th quarter of 2008 when prices corrected sharply with a 25% reduction. Industry experts expect further declines of between 15% – 30% during 2009.
The short term outlook is equally as bleak in the commercial market as businesses either down size or put expansion plans on hold. 2 The reduction in property values combined with defaults in payments from investors has resulted in a decrease in cash flow to developers. This in turn has forced many developers to postpone or halt projects adding stress to a system where payments are either delayed or withheld.
3 The U.A.E. govern by introducing a the market. The g approximately US system including for state-linked fi and financial com
$2.1b
Security check Concern over safety and security issues is driving the region’s construction industry to invest billions in security technology, according to Epoc Messe Frankfurt GmbH. GCC construction K.S.A.
K.S.A. construction growth
Growth
25
VALUE (USD bn)
20 15 10 5 0
2008
2009 2010
2011
2012 2013
se
2009 budget alloca
9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
Source | BMI
1 K.S.A. displays the most favorable prospects due to high levels of liquidity, low rates of leverage in the banking sector and strong demographic fundamentals.
3 In order to meet this demand, K.S.A. will need to build 1.5mn new homes by 2015. Residential construction will be further boosted with the introduction of a new mortgage law later this year. Once in place, the law will allow a wider access to property ownership in the Kingdom and it is estimated that housing loans could increase from USD 1.1bn in 2007 to USD 12.3bn by end-2010.
Construction growth in Saudi Arabia KSA displays the most favourable prospects due to high levels of liquidity, according to an industry survey by research firm Deloitte.
2 With a population of 25 million people growing at 2.5% a year, K.S.A. is set to double its population in 28 years. Combined with low home ownership levels, K.S.A.’s real estate sector is experiencing strong demand for housing.
27%
Komatsu’s sales up Construction equipment manufacturer Komatsu performed well in MENA in the first half of its fiscal year.
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4 Historically, private sec K.S.A. construction ma government efforts ar private investment and developers and constr entering the market to growing market.
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RERA blames media for real estate problems Speaking at a conference, Dubai Real Estate Regulatory Authority (RERA) CEO Marwan bin Ghalita said the sector had been “hurt by the journalists and media publishing incorrect data”. “The media is blamed for rising real estate prices as correct data has never been published. “They [journalists] did not check the accuracy and did not get the correct information, which is one of the prime foundations for making any decision. Journalists did not approach official sources to get the right picture.” According to data from the London Stock Exchange there are 980 registered property developments, of which 46 have been completed, 307 will be delivered on time and 495 have been cancelled. RERA was not available to comment on the remaining 132. When the market was at its strongest, there were more than 850 registered developers compared to 500 today. “Everyone was making profit from buying and selling in 20072008. But now the situation has changed . . . the market has now become more transparent,” asserted Ghalita.
CANCELLED PROJECTS
495 According to the London Stock Exchange, 495 registered projects have been cancelled in the emirate of Dubai.
The tower will make up part of the 29 Boulevard residential project in the 500-acre Downtown Dubai development.
Al Futtaim Carillion wins Downtown Dubai contract Tender for 45-storey tower project valued at US $198 million A multi-million dollar contract has been awarded to joint venture Al Futtaim Carillion, to construct two residential towers for Emaar Properties. The towers will make up part of the 29 Boulevard residential project in the 500 acre Downtown Dubai development. They will be 45 storeys high with a three-storey basement car park. The contract worth US $198 million follows Al Futtaim Carillion’s completion of three other projects in the development.
Damac hands over first of 4000 units Damac Properties will deliver almost 4000 units over the next year, with more than 10 projects currently nearing completion. The announcement was made ahead of delivery of its Jumeirah Village project. Properties now being handed over include Emirates Gardens One, which has 550 units; Emirates Gardens Two and Tuscan Residence. “We have awarded 20 projects in the last five months, totalling US $1 billion. In the next seven months we will deliver seven towers; 4000 units,” said senior vice president — communications Niall McLaughlan at Cityscape Global.
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Carillion chief executive John McDonough, commented: “We are delighted that Al Futtaim Carillion has been awarded a further contract for this prestigious development in Dubai. This reflects our high reputation for quality and delivery and the strength of our long-term relationship with Emaar.” Employing 12,000 people, the company was responsible for infrastructure and a number of buildings at the Dubai Festival City development and residential towers at Dubai Marina, among other projects.
KSA to deport protesting Chinese labourers
Saudi Arabian authorities are to deport 16 Chinese workers on a light railway project in the Muslim holy city of Mecca after they led a protest for higher wages, according to KSA media reports on Thursday 14 October. The 16 were arrested on Tuesday 12 October after striking over pay and conditions that saw several vehicles damaged, the AlWatan newspaper reported, citing a Mecca police spokesman. Earlier reports said workers on the project were frustrated by low pay, non-payment of wages and the high temperatures they endured working on the project.
Hyundai submits lowest bid for Kuwait bridge
The lowest bid for a bridge, part of Kuwait’s City of Silk, has been entered by a consortium led by Hyundai Engineering. The tenders committee confirmed last week that a bid of US $2.6 billion had been made for the 25km causeway. The second lowest bid for $2.85 billion was entered by the Bin Laden Group of Saudi Arabia. The bids will be evaluated by the Public Works Ministry. The City of Silk project will be a 250km2 urban redevelopment centred on Subiyah and designed to replicate the ancient Silk Road trade route and Industrial Zone.
EVENT INSIDER CITYSCAPE
The Big Project brings you exclusive stories from Cityscape Global 2010, which took place in Dubai last month
Waha Land CEO says Al Markaz is on track Phase one works on Abu Dhabi industrial project progress
The Falconcity of Wonders will feature replicas of world landmarks. INSET: Falconcity CEO Salem Ahmad Abdulla Al Moosa.
World is “jealous” of Dubai says Falconcity CEO Emirate is a victim of its own success according to Dubailand developer People worldwide are “jealous” of Dubai’s success in building a city in record time, according to Falconcity of Wonders chairman and CEO Salem Ahmad Abdulla Al Moosa. “We’re not supermen, but we’ve built a country of freedom, investment, education, health and communication in a very short time and you are obviously going to have people being negative about you because they’re jealous,” Al Moosa told The Big Project at Cityscape Global. However, he said Abu Dhabi and Dubai would have to “complement each other” to weather the storm and reach their full potential in terms of their development and tourism markets: “They have to act as one body. If the emirates act as different bodies, foreigners will take advantage of us. We are one country.” Al Moosa spoke specifically of negative reports regarding delays to, and the eccentricity of, the Dubailand development, home to, among other projects, The Falconcity of Wonders, a 41 million ft² falcon-shaped megaproject featuring replica structures of world landmarks including Cairo’s pyramids, the Hanging Gardens of Babylon, the Eiffel Tower, the Taj Mahal and the Leaning Tower of Pisa. The development will combine commercial and residential facilities, in addition to a four million ft² theme park.
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He asserted that the Falconcity of Wonders was still progressing to its full original scope in spite of some “damage” caused by the economic downturn. “We already have people living in villas; we have our finance in place. We’re going through a rehabilitation period.” When asked when the project would be completed, Al Moosa commented: “I would have liked to have seen the project completed yesterday, but there have been a lot of preventions.” In October 2009, Al Moosa told reporters that the development — which was launched in 2005 — was not expected to be finished until 2017. The Falconcity of Wonders developer has consecutively participated at the annual Cityscape show. “You have to be at the event to tell the world I am here, I exist and I am continuing. “The show is a place where people can meet and discuss their success or problems. “There are visitors from consultancies, engineering companies, contractors and media, as well as others, so you can tell people what your aims are and what you want from society; from a financial, sales, marketing and an operational point of view.”
Abu Dhabi-based Waha Capital’s property arm Waha Land will focus on delivering phase one of its flag-ship Al Markaz industrial real-estate project, with commencement of phase two works depending on market demand. Speaking to the The Big Project at Cityscape Global, Waha Land CEO Hazem Al Nowais said: “We’re focusing on delivering phase one on time and to our quality standards. Only when the demand arises in the market will we start phase two. If there is no demand, we may wait until we’ve handed over all of phase one.” He added that residential aspects of the development were “on hold for now”. Construction of phase one commenced in December 2009 with the levelling of the land. Works were completed in the first quarter of this year. Hazem said the area was currently being prepared for the erection of the industrial units with the structural fill of plots expected to be finished next month. “We’re going to start handing over units around May 2011 and we’re looking at the completion of the first phase, including infrastructure works, by the end of next year. “We should award two phase one packages for infrastructure and the industrial units construction before the end of this month. We’re just in the final stages of the tender evaluation.” To be constructed in four phases, the project is expected to span six km² once completed and include three asset classes: small, light industry units ranging between 250 and 2500km² with a height of six metres; light industry units between 2500-5000m² and 10m high, and warehouse up to 64,000m² and 10m high. Al Nowais estimated the cost of the first phase to be between AED 900 million and AED one billion, but could not put a price on the entire project. Previous media reports suggested the whole project would cost in the region of AED 12 billion (US $3.3 billion). “Our market research has proven to us that there is quite a demand for high-end, quality industrial spaces. That is the reason we decided to focus our real estate activities on such a niche. Now we want to ensure construction is on schedule to meet the demands and the current market conditions,” Al Nowais added.
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AVERAGE MONTHLY SALARY The average monthly salary for professionals in the real estate industry, according to MacDonald and Company
Dubai infrastructure deemed “out of sync” Survey reveals salaries are “realistic” Panel of experts at Cityscape Global 2010 blame improper planning for the MacDonald and Company releases fourth industry salary survey at Cityscape The latest salary survey from MacDonald and Company has indicated that earnings and opportunities in 2010 are now at “realistic levels”. The company’s fourth survey, in collaboration with The Royal Institution of Chartered Surveyors and Cityscape Intelligence, questioned 1041 real-estate professionals working in quantity surveying, project management, contract management, architecture and in development management sectors. Commenting on the report, company director Ben Waddilove said the jobs market in the UAE is cautious but sensible and remains attractive to those struggling to find opportunities in Europe. “The average monthly salary is AED 38,351 (US $10,440), a 1.1% rise on last year. Generally we are seeing a levelling out in the market. Going back to the period 2005-2008, salaries were going up and up. Looking at 2009, they are now at much more realistic levels and the people here want to be here.” Despite the problems in the industry, the survey found 25% received a rise with average bonuses increasing from AED 50,066 ($13,630) to AED 69,882 ($19,025), although 56% of respondents received no bonus. Redundancies are down 24% and of those made redundant, 78% have already found another job. As many as 44% of respondents believe that the current economic activity will remain unchanged. Last week, regional news reported job vacancies were increasing for the first time since the recession, with interviews increasing 113% quarter on quarter according to recruitment consultant FiveTen Group. Commenting on the future, Waddilove said: “The patterns of 2005-2008 will not be repeated in the same way, companies are more cautious when recruiting and now invest in people. They are not willing to hire unless they have interviewed extensively and feel they have the right person for the job.”
“poor design” of some of Dubai’s flagship projects A panel of experts have said that a lack of planning is leading to expensive re-designs and retrofits in the region’s biggest projects. Speaking at Cityscape Global in Dubai on October 4, representatives from Gensler, Henning Larsen, and Simmons and Simmons discussed the environmental, social and cost impact of improper planning in Dubai’s flagship projects. Ian Mulcahey, principle planning practice area leader for Gensler Worldwide said: “Lots of cities are re-thinking how a city should be planned and developed and while this is creating some fantastic opportunities for development, infrastructure is clearly out of sync.” Drawing on the example of the Dubai Metro, Simmons and Simmons partner and head of real estate in MENA, David Nunn, commented: “When you give developers responsibility, most don’t develop in an integrated way.” “Dubai Metro needed to be built 10 years ago
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$10,440
to serve the community. It was designed to meet demand as an afterthought,” he explained. “This is why it’s important to have this infrastructure planning — if you don’t get it right, to retrofit the city is very expensive and there is a terrible environmental impact.” The panel also discussed how infrastructure is still being designed on needs which are based on a “different type of planning” and that some emirates, particularly Abu Dhabi, aspire to a western system which does not fit its evolution. However, Nunn went on to praise “increasing trends for uniformity” in the region, such as the rail system, which he praised as “an excellent example of cross-boarder co-operation”. Professor Louis Becker, international director and partner at Henning Larsen Architects, Saudi Arabia added: “I see an opportunity to move to very human schemes now and create a design which supports systems and living in a different way.”
The Dubai Metro system “needed to be built 10 years ago” panel members said.
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Your shout
Turn to this month’s Your Shout on page 78 to find out what the visitor response was to Cityscape Global 2010
Tanmiyat’s Sulaiman said visitors were scarcer but those that did attend were more serious than previous years.
Tanmiyat to launch billion-dollar Mecca project First contract expected to be tendered within three months says KSA-based developer
The world’s largest crystal lagoon is under construction in Egypt.
Record-breaking lagoon on track in Egypt Crystal Lagoons invests US $100 billion in 160 developments worldwide over a period of two years, according to chairman Construction of the world’s largest navigable crystalline lagoon is progressing to schedule in Sharm El Sheikh, in Egypt, according to Crystal Lagoons founder and chairman Fernando Fischmann. At present, the largest crystal lagoon in the world is in Chile, however, the largest lagoon in the US $5 billion Crystal Lagoons residential project in Sharm El Sheikh will span 12 hectares, breaking the current world record. The development will also feature 10 other lagoons covering 100 hectares. “The first lagoon is on track to open in the first quarter of 2011,” Fischmann told The Big Project at Cityscape Global. The project is the result of the developer’s association with Golden Pyramids Plaza, owned by the Sharbatly family, said Fischmann. It has also sealed alliances for a number of other tourism developments, including the Amer Group’s Soma Bay being developed in Hurghada; a $1.2 billion investment that will be operational in 2012. Crystal Lagoons unveiled 50 of its ongoing and planned Middle East developments,
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including 12 projects in Egypt at Cityscape Global last month. Among these developments is the Dead Sea Lagoon, in association with Sama Jordan, owned by the Bani Hani family. The $250 million initiative is expected to attract a wider tourist variety and is scheduled to be finished in mid-2011. “In all of these projects, Crystal Lagoons provides something that until now was neither technical nor economically possible — the construction and low-cost maintenance of masses of water in a crystalline state that allows a beach life environment,” added Fischmann. Crystal Lagoons’ Fernando Fischmann.
Tanmiyat will soon launch a multi-billion-dollar residential project in Saudi Arabia’s religious centre, Mecca, the developer exclusively revealed to The Big Project at Cityscape Global. “This is a very interesting residential project that we will officially be announcing in the next two-to-three months. It is currently in the planning stage, but all necessary approvals have been received and we will be awarding the first contracts within three months,” said Tanmiyat advisor in charge Dr Wan Muhamad Hasni Wan Sulaiman. The KSA-based company has a number of smaller projects ongoing in Saudi Arabia, but was exhibiting its Dubailand Living Legends project at the Dubai Cityscape event. The Living Legends development scheduled for completion in 2013 will comprise 500 villas and 300 apartments. “We will deliver 200 of the villas by the end of 2011 and 300 apartments across three blocks by the end of 2013 to complete phase one,” Sulaiman said. The project will be completed in five phases with progress dependent on market conditions, he added. “The Dubailand delays have affected us a lot, as well as our customers. The cashflow is slow and contractors are demanding, customers and authorities are demanding — so as a developer we’re squeezed in the middle, but we have to deal with it,” explained Sulaiman.
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The future of green design Experts in sustainable design gathered in Dubai last month to explain why retrofitting buildings could be the only way to meet global green targets
I
t is no secret the construction industry is one of the most wasteful, with inefficient HVAC, lighting and hot water draining one third of the world’s total wasted energy. Yet implementing green building codes such as BREEAM, LEED and Estidama will not be enough if the world is to meet the United Nations’ carbon-reduction targets. Last year’s climate-change conference in Copenhagen ‘Cop2010’ committed to an 80% reduction in worldwide carbon emissions by 2050; yet even if every building constructed between now and 2050 is carbon neutral, we will still not meet that target. This shocking news was delivered by professor Bassam AdbelKarim Abu-Hijleh, head of sustainable design of the built environment at the British University in Dubai. Presenting to more than 100 delegates at Enpark’s second Green Brunch held in Dubai last month, he warned: “We have three options: business as usual until everything runs out and
the environment is devastated; find other sources of energy without tackling our actual usage or thirdly, reduce consumption. That is the only viable solution to save the environment and enhance our quality of life.” The Green Brunch was the second seminar hosted this year by environmental advisor Enpark. Exploring the benefits of retrofit, representatives from Dubai Chamber of Commerce, TECOM and the German Emirati Joint Council for Industry and Commerce discussed the outcomes of their own retrofit programmes. According to each, the benefits reach far and wide; from reduced emissions to increased profits and enhanced indoor air quality.
Easy being green
Sougata Nandi, executive director of asset management and sustainable development for TECOM Business Parks explained how the group is working on retrofits for up to 80 buildings, each in a different stage of its lifecycle and
each posing a different challenge. Nandi, shared a five-step framework (see boxout), naming reduced facilities management costs, job creation in new industries, increased market value and the “improved health and experience of occupants”, as key benefits to inspire change. Among the solutions promoted were green walls and roofs, advanced windows with double or triple glazing, reflective barriers and low emission (low-e) technology; LED lighting; using solar power to heat water, district cooling and insulation. Citing Dubai’s The Atlantis hotel as an example, he said replacing glass curtain walls with 5cm of insulating cladding reduced peak cooling by 17%. Internationally, when the Empire State Building was refurbished last year, US $20 million was invested in insulation, stateof-the-art windows and advanced cooling plant chillers. The steps reduced annual CO2 emissions by 105,000 metric tons and the energy saved is expected to reduce annual bills by $4.4 million providing a return in three years. “This is about knowledge; the same solution won’t work for everybody,” asserted Nandi. Naming over-design as a root cause of problems, he said: “If the job is done right first, this isn’t necessary.” “There are no technological challenges, only attitude. Green efficiency should be in the philosophy of management.”
Adding it up L-R: Enpark’s Ahmed Lootah, Abdel-Karim Abu-Hijleh, Gunawardena, Pfeifer and Partner GM Guido Noelle and Envestors MENA’s Yousef Hamza and Edward Roderick.
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Such attitudes and philosophies underpinned the retrofit of the Dubai Chamber of Commerce building in Bur Dubai. The
Using alternative cladding materials at The Atlantis hotel reduced peak cooling by 17%.
TECOM suggests the five following steps to improve the environmental qualities of an existing building:
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Five steps to green
Change the behaviour of occupants; recycle and switch off electronic devices Establish a conservation programme Manage utilities effectively, whether DEWA is included in the lease or not Upgrade the MEP Enrol on a certification programme Retrofit of the Empire State building will save $4.4m annually.
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Interior renovation of existing construction for an energy-efficiency update.
adding up retrofit roi
$1.9m The amount of money saved to date at the Dubai Chamber of Commerce building since its energy-saving retrofit
project began in 1996 and in 2009 the building became the first in the Arab world to receive LEED rating. During his presentation, Jugath Gunawardena, manager of projects & building development from Dubai Chamber of Commerce said: “Reducing air conditioning by one degree will reduce consumption by 9% and instilling an organisational culture will cultivate good habits.” The Chamber’s retrofit began in 1996, at a time when “nobody knew about retrofit. But we wanted to lead by example,” said Gunawardena. “We wanted to move with the times and we achieved that at no [extra] cost. If you can’t ask for a budget to go green it is something you can do with an operating budget,” he continued. Simple steps such as individually-controlled HVAC to lights, new waste-recycling systems, green purchasing policies, the removal of wastepaper baskets and water boilers, have reduced water consumption by 77%, energy consumption by 47% and greenhouse gas emissions by 37%. The changes, which were made with existing budgets, have saved $1.9 million to date. Today Gunawardena’s message is clear: “An environmentally-friendly building is not as expensive as companies think”. However, professor Bassam said that a “commercial mentality” and government subsidies which encourage reckless behaviour need urgent reform: “People are not scared enough to do anything. Politics plays a role and everyone wants to wait until someone else does it first, but in doing so they’re making it more difficult. “If we had acted 10 years ago we would not have the problems we have now; now we need to clean up more and buildings from 15 years ago need to be retrofitted.”
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5.9 RS regional risk
A UAE earthquake reaching 5.9 on the Richter Scale could be “devastating”
Concerns over safety of UAE structures Following recent media reports suggesting the UAE’s buildings are not built to withstand earthquakes; designers, engineers and seismic experts reassure The Big Project that the region’s structures are safe
T
he collapse of a foot bridge at the Jawaharlal Nehru stadium in New Delhi last month led to concerns over the safety of bridges in the region. Germany-based insurer MunichRe told local media that the UAE could potentially suffer a “very strong” earthquake, for which structures in Dubai, particularly bridges, are not prepared. The company claimed an earthquake of magnitude 5.9 on the Richter Scale or higher could have “potentially devastating consequences”, further warning that the UAE is “significantly exposed” to such an event. Explaining the stress caused to structures by a hostile climate, MunichRe board member Ludger Arnoldussen said: “Regions prone to natural catastrophies are being built up and people aren’t aware of the events that happened in the distant past.”
Assessing the Risk
The hazard posed by earthquakes has more than quadrupled over the last century as a result of global urbanisation. Adding to this risk is the potential frequency of quakes “on the scale of Haiti”, which occur in the Middle East at 400-year intervals. Furthermore, seismic activity in Iran poses such a risk that the government should move or
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re-build Tehran as a matter of urgency, according to scientists. The UAE is classed as a ‘Zone 0’ area; stable despite its proximity to three fault zones near Dibba (a coastal region on the north east of the UAE peninsula on the Gulf of Oman), between Bidyah and Jebel Salhal, and Wadi Hum. The nearest major fault line, the Zagros fault, is 200km away from Dubai and the risk of a tsunami is minimal because of relatively shallow waters. Yet it is feared that increased activity in Iran could cause stress on these faults; the most recent earthquake affecting Dubai occurred last year. Arup associate Zygmunt Lubkowski, a geotechnical earthquake engineering expert, supported that the risk is minimal based on existing records. However, echoing Arnoldussen’s concerns, he warned that these records only cover a fraction of time in the region’s overall seismic history. In Dubai, any building higher than five storeys must comply with municipality requirements, which according to Lubkowski require buildings to withstand levels of ground shaking far above that which could realistically occur. But, such concerns are not new. In 2005, scientists voiced fears about the 100km active fault line near Dibba, connected to the Zagros
fault. Dr Azm Al Homoud, a seismologist and professor of Civil Engineering at the American University of Sharjah told local media at the time that it was a national issue which required address on a national scale. He recommended the development of specific codes on design and construction, and checks on vulnerable and important buildings like hospitals and schools.
Built to last
The debate continues as the Dubai Roads and Transport Authority (RTA) completes a new bridge on Sheikh Zayed Road, connecting Al Safa Street with Financial Centre Street; it will open to traffic by the end of the year, bringing the total length of bridges located in that area alone to 3km. Speaking on behalf of the RTA, CEO Maitha Bin Adai reiterated that despite Dubai’s Zone 0 classification, precautions have already been taken in the design of the emirate’s bridges, particularly on those bridges crossing the Dubai creek. “Bridges across the UAE have already been exposed to a real test during the 2002 earthquake without any kind of minor deteriorations or damages,” Adai explained. “The 2002 earthquake epicentre was located
In spite of its close proximity to three fault zones, the UAE is classed as stable.
The ‘Zagros’ fault line is the nearest major fault line to Dubai say experts
uae CLASSIFiCaTION
NEAREST FAULT LINE
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200KM
Al Garhoud Bridge in Dubai.
“The nearest major fault line, the Zagros fault, is 200km away from Dubai and the risk of a tsunami is minimal because of relatively shallow waters” within the region of Dibba-Masafi. As per the statistical studies, this earthquake is not expected to repeat again within 475 years. Accordingly, all the bridges in Dubai can be considered safe to resist all expected earthquakes in the UAE.” VSL deputy general manager Stephen Burke explained: “All bridge construction follows codes of practice; each geographical area worldwide has a seismic map. We know that in Chile the risk is much higher than here and everything is designed according to where the actual fault lines are. “I have no fears about the safety of the structures as it’s taken into account in this area. Engineering is well managed and the authorities have checks in place because a bridge is a major structure that is taken seriously from a design perspective,” he asserted.
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ZONE 0
ABOVE CLOCKWISE: A footbridge at the Jawaharlal Nehru Stadium in New Delhi collapsed on September 21; Sitra Causeway project in Bahrain; Pillars for a road bridge by Dubai RTA; Part of the Business Bay extension involves elevating Sheikh Zayed Road to form a bridge 800m long.
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N
o stranger to business trends, author and journalist Richard Dean forecasts that Middle East construction market conditions will inevitably improve in 2011, but only the companies that prepare will benefit, he warns. “There is an economic boom coming and it could kill your company,” asserts Dean, explaining that the firms that survived the downturn could lose their niche and fail in the upturn by repeating past mistakes. “Businesses need to look at what is happening around them and respond,” he says, drawing on examples of two of the region’s largest developers Nakheel’s and Emaar’s reactions to the global economic downturn. At Cityscape Dubai in October 2008, just weeks after the demise of the Lehman Brothers investment banks caused the biggest shake-up Wall Street had seen in decades, Dean recalls that Nakheel said “there may be a slowdown, but not a crisis”. “Whereas Emaar admitted there were changes on the horizon. Its share price fell but it coped with the crisis and in 2010 it said it was well positioned to face the changing domestic real estate market.” Keeping that in mind, Dean uses a case study of steel supplier GEAP to arrive at five top tips for staying afloat come rain or shine.
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Author of business title Sink or Swim, Richard Dean, tells The Big Project that an impending economic upturn could be the downfall of construction companies that fail to prepare
Stick to your knitting “GEAP has diversified over the years, but its expansion has always been based on competitive advantage, for example it resisted the temptation to jump on the Dubai property bandwagon.”
Hire and retain strong managers
“Businesses need to look at what is happening around them and respond” Author and business correspondent Richard Dean.
Expect the worst “Thanks largely to the fact that the UAE economy is far more diversified these days, the slump in 1986 was much more severe than the recent downturn. “GEAP began trading nearly 40 years ago and wasn’t immune from these shocks, but the company survived because it was on the lookout for the next threat — as well as the next opportunity.”
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The calm after the storm
“Strong management was crucial to GEAP hanging around; profits come and go, but strong leadership and a motivated team drives a business.”
Practice financial discipline “A strong company is not built with a mountain of debt, but by re-investing profits back into the business. Borrowing ratios should remain low and over-zealous bankers ignored.”
Be a trading company, not a hedge fund “Steel is GEAP’s main business — processing, importing, trading and never speculating. Steel prices have fluctuated wildly over the last two years but the businesses which benefitted were the ones which didn’t hoard in the hope of making huge speculative windfalls, just steady, long-term profit.”
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Damage control Failure to spot potential construction disputes early can be costly. International law firm Al Tamimi & Co senior associates in construction & engineering practice Eric Teo and Dean O’Leary outline five common contractual issues
Al Tamimi senior associate Dean O’Leary, based in Dubai.
Al Tamimi senior associate Eric Teo, also based in Dubai.
01 The right to suspend works
Under the 1987 and 1999 editions of the FIDIC Red Books, which are the prevalent form of contract used in the UAE, there are provisions that allow the contractor to suspend works and the employer (through the engineer’s instruction) to require works to be suspended. For example, Sub-Clause 40.1 of the 1987 conditions provides that the engineer designated under the contract may at any time instruct the contractor to suspend works in full or in part, and pursuant to Sub-Clause 69.4 of the same conditions, the contractor is entitled to suspend or slow down the progress of the works if the employer fails to make payment within a certain period of time in respect of sums due under any payment certificate issued by the engineer. The issue which commonly arises is whether the party who suspended the works or initiated the suspension was right to do so and what are the reciprocal rights and remedies of the other party? Another common issue — in the absence of a contractual right to suspend works or failure to properly initiate relevant provisions — is there any provision under the UAE laws that could provide some form of relief or remedy? We often hear contractors complain that despite being instructed by the engineer to suspend the progress of the works (due to poor market conditions); the engineer would not grant an extension of time and costs as a result of the suspension.
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SUB-CLAUSE (1987)
69.4 contractor is entitled to SLOWDOWN OR suspend WORKS IF the employer fails to make payment within a certain period of time
engineer’s instruction 02 The to recover lost time
In construction projects, the engineer or the employer’s representative will usually have the power to instruct the contractor to increase the rate of the works or to take steps to recover any delay should the actual progress or physical status of the works indicate that the works will not be completed within the contractual deadline. Such powers can be found in Sub-Clauses 46.1 and 8.6 of the 1987 and 1999 FIDIC Red Books respectively. The issue that often arises is whether the contractor is obliged to give effect to such an instruction and, if so, would the contractor be entitled to claim the additional costs or expenses in complying with such an instruction? The issue becomes more complicated when the contractor argues that it was not responsible for the delays that have occurred on the project and that the engineer has failed to grant it a reasonable extension of time. The question of whether the contractor was entitled to an extension of time often involves the need to carry out detailed investigation of the historical events and a complex technical and factual analysis by delay analysts to ascertain the cause and effect of such delays. It is crucial that these tasks are undertaken with the advice of the parties’ respective lawyers.
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a third party to 03 Employing takeover part of the works
Based on the FIDIC 1987 and 1999 Red Books, the employer is obliged to provide access and possession of the site to enable the contractor to carry out the full scope of the works within the contractual deadline. Except under certain circumstances, the employer is prohibited from interfering with the manner and timing in which the contractor carries out the works. Until a Taking-Over Certificate is issued for whole or part of the works or the contract is terminated, the employer is not entitled to take possession of the site or control of the works. Furthermore, under the FIDIC Red Books, omission of any part of the works from the original scope of the contractor is not permitted if such works are to be carried out by the employer or a third party (see Sub-Clauses 51.1(b) and 13.1(d) of the 1987 and 1999 FIDIC Red Book respectively).
This begs the question, can the employer engage a third-party contractor to carry out a specific part of the works because the contractor is badly behind schedule or has suspended its works due to non-payment? As mentioned above, there are limited situations in which an employer can engage a third party to intervene without terminating the contract. One such situation is contemplated under Sub-Clause 7.6 of the 1999 FIDIC Red Book whereby the employer is entitled to employ a third party to carry out urgent works for the safety of the works if the contractor fails to do so immediately despite having been instructed by the engineer. But what other situation allows the employer to engage a third party? Can the employer rely on certain provisions of the Civil Code to circumvent the restriction upon him in engaging a third party without terminating the contract?
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or “pay-if05 “Back-to-back” paid” payment provisions
04 Who is the “engineer”?
Under the FIDIC Red Books, a party designated as the “engineer” under contract must be identified and named in the contract (the name of the engineer is usually stated in the appendix to the tender and/or in the ‘particulars conditions’). In reality, the engineer is a third party to the construction contract whereby the contracting parties empower him to carry out certain duties and determinations pursuant to the terms of the contract. For example, under the FIDIC Red Books, the engineer is empowered to issue instructions to the contractor to vary the works, issue payment certificates upon which the employer must make payment within a certain time period, grant an extension of time to allow the contractor a longer period of time to complete the works, etc. Typically, the employer’s architectural or engineering consultants would take up the role of the engineer under the contract. One of the reasons for this is because, depending on the scope of their engagements, they have a statutory obligation (see Articles 880 and 881 of the Civil Code) to ensure that the project will be designed and constructed free from any defects that may threaten the structural integrity or safety of the building or structure. Furthermore, they are also professionals who are registered with the local municipality and are, therefore, answerable to local government agencies and authorities in relation to the design and construction of the project. However, depending on the nature, size and complexity of the project, a
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project management consultant who is usually employed at the inception of the project, is also commonly engaged by employers to take up the role of the engineer. Therefore, there can be a number of professionals that an employer may employ on the project, e.g. various specialist designers, architects and engineers, supervising architects and engineers and quantity surveyors and cost consultants. The various interactions and exchanges of communications between these professionals and the contractor in order to procure information, approvals and certifications in an ongoing project often causes confusion as to who is the “engineer” (and who is the lawful representative or delegate of the engineer) under the contract or whose instructions and determinations are binding on the parties? We have come across cases where the party who regularly issues instructions and approvals to the contractor is not named as the engineer under the contract, and yet the party who is named in the contract is no longer employed by the employer. One of the major repercussions of not being able to properly identify the engineer is that; either party may not be certain to whom they should refer their claims or disputes to in order to obtain the engineer’s valuation, certification or determination. This causes a further problem when either party wishes to initiate the dispute resolution mechanism under the standard FIDIC Red Books, which will in the end enable them to bring their claims or dispute to arbitration for final resolution.
These terms are notorious within the construction industry, especially at the subcontracting level. Their objective is to provide a contractual arrangement between a main contractor and a subcontractor such that the latter will not get paid until the former receives the corresponding payment from its employer. There are a number of jurisdictions (for example, the UK, Singapore, New Zealand and certain states in Australia) where a contractual “pay-if-paid” type of arrangement is outlawed. In the absence of any legislation that disapproves such practices and coupled with the principle of freedom of contract and the concept of good faith in exercising contractual rights, it is not clear how and to what extent would the local courts or an arbitral tribunal view or approach a “back-to-back” or “pay-ifpaid” provision. The uncertainty with these provisions is exacerbated by badly-drafted provisions, such as what is meant by “the subcontract will be on a back-to-back basis”? Is this a “pay-if-paid” or a “pay-when-paid” provision (for which a distinction can be made between them)? Does the “back-toback” arrangement prevent the sub-contractor from getting paid if the main contractor is involved in arbitration or litigation with the employer or, for whatever reason, the main contractor chooses not to pursue overdue payments from the employer? And given the circumstances, can the outof-pocket subcontractor pursue payments directly from the employer? There are no quick answers to the issues raised above. And there are many other issues that have given rise to uncertainties and ambiguities within the construction industry, which is partly caused by the interactions between wellaccepted contractual provisions (such as the FIDIC Conditions of Contract) and local laws; in particular, the Muqawala section of the Civil Code and the application of the Commercial and Civil Codes generally. Since the founding of the UAE in 1971, the construction and property development sectors in the UAE, and Dubai in particular, have experienced phenomenal growth. During this period, industry players were busy negotiating and building projects rather than getting embroiled in the “niceties” of the interaction between contractual provisions and the legal codes. Therefore, many of the issues raised in this article have not, until recently, been the subject of dispute or issues that the industry players have had to deal with. Legal practitioners are now being called upon to step up to demands from industry to deal with these complex issues. It will be interesting to see how local legal jurisprudence will develop to resolve the issues that are now plaguing the industry.
AD
1.1%
2.0%
Exhibit 4: Customers Split in terms of1.4% Numbers 0.1%
82.5%
1.1% KSA electric customers in 1.4% NUMBERS Residential
Industrial
Commental
Agricultural
Governmental
Residential
Industrial
Source: SECCommental
82.5%
12.9% 2.0%
Others
0.1% 1.1%
Agricultural
Governmental
Others
1.4%
Exhibit 5: Customers Split in terms of Consumption Source: Saudi Electricity Company
C
22.0%
5: Customers Split in terms of Consumption 22.0%
Residential
Industrial
Commental
Agricultural
Governmental
10.9%
51.1% Source: SEC
$1.8b
SAUDI ARABIA tender The value of KSA’s Al Qurayyah plant, on which bids have just been launched.
Others
Exhibit 5: Customers of Consumption 10.9% Split in terms 10.2%
51.1%
3.7%
3.7% Residential Source: Industrial SEC
10.2% Residential 2.1% Industrial
Governmental
Commental
2.1%
22.0%
Commental Agricultural 51.1%
Others
10.9%
Agricultural
Governmental
Others
10.2% In terms of customer segmentation, Residential segment accounted for the bulk of C customers as it forms 2.5% of the total customer base of SEC. The2.1% next customer 3.7% category in terms of bulk customers was Commercial segment which accounted for of customer segmentation, Residential segment for the bulk 12.9% of the total customers. Amongaccounted the other customers areof Government, Industrial, Residential Commental rs as it forms Agricultural, 2.5% of the Hospitals, total customer base of SEC.and TheCharitable next customer Mosques, Streets Societies, they all together Industrial Agricultural in terms of bulk customers was Commercial segment which accounted for accounted for 4.6% of the total customers in 2005. Governmental Others f the total customers. Among the other customers are Government, Industrial, ural, Hospitals, StreetsSource: and Charitable Societies, they all together InMosques, terms of power consumption, Residential segment consumed 7 ,304 GWH which SEC d for 4.6% ofwas the total customers in 2005. 51.1% of the total power sold during 2005. Among the other bulk consumers are Industrial segment which accounted for 22.0%, Government segmentaccounted 10.9% for the bulk of In terms of customer segmentation, Residential segment of power consumption, Residential segment 7 ,304ofGWH which customers asconsumed it forms 2.5% the total customer base of SEC. The next customer 1% of the total power sold during 2005. in Among othercustomers bulk consumers category terms the of bulk was Commercial segment which accounted for strial segment which accounted12.9% for 22.0%, Government segment 10.9% Electricity Company December - 2006 of theSaudi total customers. Among the other customers are Government, Industrial,
Agricultural, Hospitals, Mosques, Streets and Charitable Societies, they all together accounted for 4.6% of the total customers in 2005.
GCC power projects Saudi Electricity Company
December - 2006
In terms of power consumption, Residential segment consumed 7 ,304 GWH which was 51.1% of the total power sold during 2005. Among the other bulk consumers are Industrial segment which accounted for 22.0%, Government segment 10.9%
26 | www.thebigprojectme.com
Saudi Electricity Company
December - 2006
1.1%
2.0% Split in terms of Consumption Exhibit 5: Customers 1.4%
0.1%
22.0%
Industrial Agricultural
Commental
Governmental
sidential
Industrial
mmental
Agricultural
vernmental
51.1%
Others
10.2%
Customers Split in terms of Consumption Source: Saudi Electricity Company
erms of Consumption 22.0%
ntial
ial
nmental
3.7%
2.1%
22.0% Residential
Commental
Industrial
Agricultural
Governmental
$1.2b Shuweihat 3
The cost of Abu Dhabi’s ninth IPP recently procured by ADWEA
Others
10.9%
Source: SEC 51.1%
3.7%
10.9%
Others
In terms of customer segmentation, Residential segment accounted for the bulk of customers as10.9% it forms 2.5% of the total customer base of SEC. The next customer 10.2% category in terms of bulk customers was Commercial segment which accounted for 2.1% 3.7% 12.9% of the total customers. Among the other customers are Government, Industrial, Agricultural, Hospitals, Mosques, Streets and Charitable Societies, they all together 10.2% Residential Commental accounted for 4.6% of the total customers in 2005. 2.1% Industrial
Governmental
Agricultural Others
In terms of power consumption, Residential segment consumed 7 ,304 GWH which Commental was 51.1% of the total power sold during 2005. Among the other bulk consumers Agricultural are Industrial segment which accounted for 22.0%, Government segment 10.9% Others
customer segmentation, Residential segment accounted for the bulk of as it forms 2.5% of the total customer base of SEC. The next customer Saudi Electricity Company terms of bulk customers was Commercial segment which accounted for e total customers. Amongaccounted the other customers are of Government, Industrial, on, Residential segment for the bulk al, Mosques, Streets Societies, they all together he Hospitals, total customer base of SEC.and TheCharitable next customer for of the total customers in 2005. ers 4.6% was Commercial segment which accounted for ong the other customers are Government, Industrial, Residential ,power Streetsconsumption, and Charitable Societies,segment they allconsumed together 7 ,304 GWH which of the total power sold during 2005. Among the other bulk consumers ustomers in 2005. ial segment which accounted for 22.0%, Government segment 10.9% Residential segment consumed 7 ,304 GWH which ld during 2005. Among the other bulk consumers ccounted for 22.0%, Government segment 10.9% Saudi Electricity Company December - 2006
di Electricity Company
December - 2006
News
Residential
December - 2006
XXXXXXXX COVER | GCC| POWER XXXXXXXXXX PROJECTS
1.1% ksa electric customers by 1.4% CONSUMPTION
With an estimated US $1.4 trillion worth of GCC power projects underway or in the pipeline, The Big Project looks at planning and funding issues surrounding developments and identifies the region’s top five projects
T
here are currently US $1.4 trillion worth of power projects underway or in the pipeline in the GCC and the UAE accounts for half of these, posing a big opportunity for contractors to tap into this market. However, these projects are based on forecasts of a huge increase in demand for power in the region, but there is no guarantee that this demand will materialise and even if it does, projects may be left competing for a limited pool of private capital. Demand relies on economic growth, which is currently driving the need for energy in the emirates with research agency Business Monitor International (BIM) forecasting real GDP growth averaging 3.7% per annum between 2010 and 2014. Abu Dhabi’s population growth is also expected to drive demand, with the Abu Dhabi Water and Electric Authority (ADWEA) forecasting a 216% rise in energy requirements between 2010 and 2030. “Abu Dhabi’s industrial base is a major consumer of electricity and with new industrial construction projects underway, this trend is set to continue as the emirate seeks to diversify its economic base towards manufacturing and petrochemicals,” BIM head of infrastructure Marina Petroleka tells The Big Project. The emirate just procured its ninth independent power project (IPP) Shuweihat 3. The 1600 megawatt power plant costing AED five billion ($1.2 billion) will eventually produce the cheapest electricity the emirate’s utility has secured since 1998 and supply 17.8% of current electricity demand. A consortium of Japan’s Sumitomo and Korea Electric Power Corporation (KEPCO) has been appointed to build Shuweihat 3 on the far-western coastline by 2014. The contract confirms KEPCO’s newfound prominence in Abu Dhabi’s energy industry, after it was awarded an AED 73.4 billion (almost $20 billion) contract in December last year to build the country’s first four nuclear power stations. The natural-gas fuelled plant will generate more power than Shuweihat 2 — ADWEA’s AED eight billion ($2.2 billion) plant that will
www.thebigprojectme.com | 27
“The projects pipeline should be able to meet demand, if all projects are implemented on schedule”
start operations next summer — but cost 38% less, partly because Shuweihat 3 will not include an attached desalination plant. Shuwaihat 2 is being developed on a build, own and operate (BOO) basis. The $2.8 billion project will generate 1500-megawatts of electricity and desalinate 100 million gallons of water. ADWEA has a 60% stake, while Marubeni Corporation of Japan and France’s GDF Suez each have 20% interest in the project.
Strategic development Speaking at Power Generation & Water Middle East, held last month in Abu Dhabi , Abu Dhabi National Energy Company CEO Abdulla Saif Al Nuaimi identified planning, sustainability and supply as the key issues in the development of the GCC’s power sector, paying particular attention to potential funding issues. “With the support of Public Private Partnerships (PPPs) we are confident of achieving our objectives,” he added. But MEED’s GCC Power Market Report 2010: Keeping Pace with Demand suggested due to recent improvements in the financial markets, project finance is again becoming easier and cheaper to secure, particularly for power projects backed with long-term offtake agreements. This will help projects move more easily from design to execution stage than in the past 18 months, so suppliers to the power industry can expect busier months ahead. But Petroleka points out that Dubai is yet to procure one IPP, which she says “highlights where the centre of investments lies not just in the UAE, but also in the wider GCC”. IPPs and IWPPs are clearly on the emirate’s agenda, however. Last month, utilities provider Dubai Electricity and Water Authority (DEWA) said it would launch the tender for the construction of the proposed IWPP facility in Hassyan — due for commission in 2014 — by the end of 2010, as part of its $7.6 billion investment programme. The sum, which is expected to be spent over the next two years, will fund a 20% rise in power generation and a 40% rise in desalinated water by the end of 2012. The increased production is expected to meet demand until 2015. “DEWA’s expansion strategy requires a substantial amount of capital and other long-term expenditure, including those relating to the development of new generation and desalination plants, the construction of additional power transmission and distribution networks, water transmission and distribution pipelines
28 | www.thebigprojectme.com
Dubai power
20% Dubai is investing More than $7.6 billion into power projects to fund a 20% rise in power generation over two years
and reservoirs and other installations necessary for the operation of its business,” DEWA officials said in local media reports. The tender process was deferred in February 2009 and then amended from an engineering, procurement and construction contract (EPC) to a fully-private venture, including financing, construction, maintenance and operation. However, BMI doubts the fundamentals supporting supply and demand for electricity in Dubai: “DEWA’s CEO is cited by Reuters saying that power demand in Dubai grew 6.3% in 2009 to 5622 megawatts, a far cry from DEWA’s earlier forecasts of 15% growth in electricity consumption in 2009. We believe that moderate economic activity in Dubai will also account for moderate growth in demand.” According to BMI’s power forecasts, electricity output will increase, on average, by 3.6% per year between 2010 and 2019, reaching 116TWh by 2019. “We see strong upside risks to this forecasts taking into account the investment plans in the pipeline,” observes Petroleka.
News
XXXXXXXX COVER | GCC| POWER XXXXXXXXXX PROJECTS
DUBAI Hassyan power and desalination plant
Top five GCC iWPPs QATAR Ras Girtas Power & Water Plant
ABU DHABI SHUWEIHAT 3 INDEPENDENT POWER PROJECT
Actual Value: US$3.9 billion The Ras Girtas power and water plant in Qatar’s Ras Laffan is expected to have a capacity of 2 730 MW, combined with a potable water output of 63 million gallons per day. The EPC contract went to Mitsui Corporation of Japan, which sub-contracted Hyundai, Mitsubishi Heavy Industry and France’s Sidem. The first phase was completed in June, with full project completion expected in April 2011. Ras Girtas Company for Power is a joint venture between Qatar Petroleum (15%), Qatar Electricity and Water Company (45%), GDF Suez of France (20%), Mitsui Corporation (10%), Chubu Corporation of Japan (5%) and Shikoku Corporation of Japan (5%). Main Contractor: Mitsui Corporation of Japan
Actual value: US$1.2 billion The The 1600 megawatt power plant costing AED five billion ($1.2 billion) will eventually produce the cheapest electricity the emirate’s utility has secured since 1998 and supply 17.8% of current electricity demand. A consortium of Japan’s Sumitomo and Korea Electric Power Corporation (KEPCO) has been appointed to build Shuweihat 3 on the far-western coastline by 2014. The natural-gas fuelled plant will generate more power than Shuweihat 2 — ADWEA’s AED eight billion ($2.2 billion) plant that will start operations next summer — but cost 38% less, partly because Shuweihat 3 will not include a desalination plant. Main Contractor: Sumitomo and KEPCO
Actual value: US$2 billion The Dubai Electricity and Water Authority’s Hasssyan power and desalination complex is planned to be a huge plant made up of six stations (P1, P2, Q1, Q2, R1, R2) each with a gross capacity of around 1500 MW and between 100-120 million gallons per day of desalinated water. Configurations on the drawing board include gas turbines with associated heat recovery steam generators, auxiliary boilers, backpressure steam turbines and MSF desalination units. The project will also include infrastructure for water storage and distribution. Mott Macdonald is the consultant for P1, while Lahmeyer is the consultant for P2. DEWA initially planned to build two water and power plants at the site simultaneously. In February 2009, DEWA delayed the tender for the P2 stage to September 2009. P1 was put on hold due to the high prices of bids submitted. According to recent media reports, the tender for the construction of the proposed IWPP facility in Hassyan — due for commission in 2014 — by the end of 2010, as part of its $7.6 billion investment programme. The sum, which is expected to be spent over the next two years, will fund a 20% rise in power generation and a 40% rise in desalinated water by the end of 2012. Main Contractor: Mott Macdonald (P1 Stage)
Main Contractor: Lahmeyer Intl (P2 Stage)
KUWAIT SUBIYA POWER PLANT PROJECT Actual value: US$3.6 billion The project calls for construction of 2000MW Power Plant at Subiya. The plant is a gas-fired plant. A consortium of Al-Rashed Group for Projects Holding Co., KSCC, General Electric (GE) and Hyundai Heavy Industries was awarded the
main construction contract in August 2009. Construction is expected to be completed in 3rd quarter of 2011. The client is the Kuwait Ministry of Energy. The Kuwait-owned plant will add much-needed power to the grid, allowing Kuwait to boost electricity production to help meet growing demand. When completed, the plant will raise Kuwait’s power capacity from current levels of around 11,000 megawatts. Kuwait”s robust business and residential growth has strained the country”s power generation capability, resulting in power outages during the hot summer months. Main Contractor: General Electric International — GE (USA) Main Contractor: Hyundai Heavy Industries Company
SAUDI ARABIA al-Qurayyah power plant Actual value: US$1.8 billion State-controlled Saudi Electricity Company has set February 28 as a deadline for companies to bid for the gas-fired al-Qurayyah power plant, according to a report by Reuters. Al-Qurayyah, south of the eastern city of Khobar, would have a power generation capacity in the range of 1800 to 2100 megawatts, and is estimated to cost $1.8 billion, said Amer al-Swaha, who is head of Independent Power Projects (IPP) at the firm. The plant is the third of six planned IPP projects, which involve the private sector, that would add around 11,000 megawatts of capacity. Saudi Electricity will buy all the power produced by the plant from the winning consortium, which will run it on a build-own-operate basis. “We have completed the prequalification process of 14 bidders and issued the request for proposals on Wednesday,” Swaha said. “It is expected to be fully operational on June 1, 2014 ... August 31, 2011 (is) the financial close,” Swaha told the news agency last month.
www.thebigprojectme.com | 29
COVER | GCC POWER PROJECTS
“So long as the sector grows, there will be a plethora of opportunities for EPC works for the domestic companies”
In 2009, capacity in Abu Dhabi was 10,110megawatts, by 2013 it will be 13,210 megawatts at least (based on the commissioning of Shuweihat 2 and 3), an increase of 30%, or an average of almost 9% per annum.
Funding growth Outside the UAE, the Gulf’s need to build new power stations remains strong. Although the global economic recession slowed the rate at which electricity demand is growing in the GCC, consumption is still climbing significantly. There are nine power projects in the early stages of development in the Gulf, including Kuwait and Dubai’s first independent power and water projects. Saudi Arabia expects to see usage continue to increase by about 8% a year, while Qatar is predicting double-digit growth every year until 2013. Jordan and Egypt are also well-advanced in planning their atomic energy programmes, and other Gulf states see nuclear power as a suitable alternative to gas feedstock, which is becoming more difficult to access. Abu Dhabi’s Shuweihat deals are likely to be the first of several nuclear contracts awarded in the Gulf and the wider Middle East in the next few years. The UAE has repeatedly expressed an interest in building more reactors than the four it already has on order. So the consortiums that missed out on that first nuclear deal could yet win multibillion-dollar contracts in the region. BMI expects that foreign majors (GDF Suez, Marubeni and KEPCO, among others) will continue to sponsor the IPP and IWPP projects because they possess the “technological knowhow” and “network of financiers” to successfully procure major projects. “However, foreign companies tend to have strategic partnerships with local engineering firms, which take on sub-contracting works for these projects. In addition, local companies also take on pure EPC contracts from the utilities,” observes Petroleka. Local contractors operating in the EPC sphere that have already benefited from investments in the GCC power sector include Al Jaber Engineering, Gulf Contracting, Saudi Oger, El Seif Engineering, and Al-Hassan Engineering. So long as the sector grows, there will be a plethora of opportunities for EPC works for domestic companies.
30 | www.thebigprojectme.com
Middle East And Africa Primary Energy Demand, 2012-2019 (mn toe) Country
2012f
2013f
2014f
2015f
2016f
2017f
2018f
2019f
Algeria
43.5
45.5
48.0
49.7
51.9
54.0
56.2
59.5
Angola
na
na
na
na
na
na
na
na
Bahrain
na
na
na
na
na
na
na
na
Egypt
86.5
90.8
94.0
97.8
101.2
105.2
109.4
113.8
Iran
216.0
225.7
235.9
244.1
251.4
260.2
269.4
280.1
Iraq
na
na
na
na
na
na
na
na
Israel
na
na
na
na
na
na
na
na
Kenya
22.6
24.0
26.0
27.2
28.5
30.0
31.5
34.0
Kuwait
34.0
35.9
37.5
39.0
40.9
42.6
44.7
47.2
Libya
na
na
na
na
na
na
na
na
Nigeria
121.3
127.3
133.7
140.4
147.4
154.8
162.5
170.6
Oman
na
na
na
na
na
na
na
na
Qatar
31.0
33.6
37.5
41.3
44.6
48.1
52.0
56.1
Saudi Arabia
208.0
216.3
225.0
231.7
237.5
243.5
249.6
255.8
South Africa
135.0
138.4
142.6
145.4
149.8
153.5
157.3
162.1
UAE
86.7
90.6
94.7
99.4
103.4
107.7
113.1
117.9
BMI universe
984.7
1,028.2
1,074.8
1,115.9
1,156.6
1,199.7
1,245.6
1,297.1
f = BMI forecast; na = not available. Source:: BP Statistical Review of World Energy, June 2009; BMI
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XXXXXXXX Market Explorer | XXXXXXXXXX | Riyadh
Riyadh vision Huge investments in a long and varied project pipeline are driving the economic diversification of one of the Middle East’s most important cities, Riyadh. Melanie Mingas explores the opportunities and limitations in the capital’s construction market
T
he Arabic name Riyadh translates into English as ‘place of the gardens’, yet the city has grown from an ancient orchard to a 600 square mile urban oasis built on oil. Now more than 1500 years old, Riyadh is divided into 15 districts and has seen its population grow fivefold since 1960. From the first skyscraper, to the highly-anticipated smart cities and award-winning Kingdom Centre, today’s Riyadh looks every inch the burgeoning business and financial hub. The city’s success, according to the Riyadh Development Authority (ADA), is due to a combination of its geography, and its strategic and international status, which places it among the most significant capital cities in the world. As a result of this and the country’s key wealth-driving projects, KSA is undoubtedly the place to be for those in the construction industry. One company making the most of the opportunities in Riyadh is formwork and falsework provider RMD Kwikform. Eyeing a 30% market share, the firm moved into the country only 14 months ago and has already witnessed positive results. “There is a focus on infrastructure in the east of Saudi Arabia and there are a few mega projects in the west, but the central region seems to have covered the whole spectrum of projects,” says regional manager Peter Gibson. “The infrastructure segment of the market has developed healthily over the last two years, with a major redesign of Riyadh’s internal road and transport system; mega projects in the
“Riyadh will burst into the cyber-century and beyond when KSA’s first smart city, the Information Technology Communications Complex is completed”
unit space delivered The King Abdullah Financial District in Riyadh.
infrastructure market show the commitment to upgrading the Kingdom as a whole.” In addition to housing requirements, the city must meet the major schemes currently underway which will contribute to an additional 1.3 million m² of office space by 2015 and 2.9 million m² of retail space to be delivered by 2014. John Harris, head of Jones International real estate services firm Lang LaSalle KSA comments: “The demand for offices this year is clearly much higher than last year and public-sector agencies are driving this. Multinationals have also made KSA a priority growth market.” The company’s 2010 report stated that while demand is high, supply is even higher, with 50,000m² of unit space delivered so far this year.
50,000m2 The amount of office unit space that has been delivered to date in 2010 in riyadh, according to lang lasalle ksa
Harris says oversupply in the retail sector led to a “cyclical downturn that was driven largely by oversupply. “We understand that retailers are experiencing improved trading conditions this year,” continues Harris. “Perhaps we will see enough confidence to launch new projects in recently-developed suburban districts. We also expect to see continued penetration of mid-market brands into secondary cities.” Adding to this, a number of road works,
www.thebigprojectme.com | 33
A new mosque in Riyadh’s financial district, designed by FX Fowle.
water and power plants, residential complexes and education facilities are also underway. “Generally the trading processes and regulations are accommodating growth and all businesses are looking at new technology and other requirements necessary to enter the market,” explains Gibson. “Complementing this is the high volume and variety of projects being released here, compared to other regions.”
Building smart
Smart buildings will be high on the agenda at Saudi Build 2010, taking place this month, with investment expected to reach US $39.9 billion by 2018. The term was first coined in 1980’s America by the Institute of Smart Buildings. Riyadh Exhibitions Company deputy general manager Mohammad Al Hussaini says: “Smart buildings are steadily growing in importance, with the government’s increasing focus on environmental sustainability. The initiation of huge smart projects in the Kingdom was through the support of bodies such as the government’s Public Pensions Agency. “Demand is driven by factors such as energy efficiency, savings in terms of reduced operating costs and optimised building performance.” Smart buildings can reduce energy consumption by 30%, emissions and water consumption by 50% and reduce building waste by 90%. Legislation is expected to make the development of these sustainable buildings
34 | www.thebigprojectme.com
mandatory by the end of the year. Smart projects already underway include the eight million m² Prince Nora University and King Abdullah Financial District (KAFD). In less than three years, Al Hussaini predicts that Riyadh will “burst into the cybercentury and beyond” when Saudi Arabia’s first smart city, the Information Technology Communications Complex (ITCC), is finally completed. Following in the footsteps of Dubai’s Internet City and smart cities in India and Malta, the $1.65 billion development will be an ITCC hub. Phase one of the project involved contracts awarded to deliver four 20-storey towers, a 326 room hotel, 5000m² convention centre and a sprawling residential complex. Due to open soon, the 21-storey Waseel tower will be the first green office building in Riyadh; allowing tenants to independently control heat and light, and featuring motion sensors to detect empty rooms; it is expected that 30% of operation costs could be saved. Speaking of the opportunities smart buildings bring, Al Hussaini says: “Sustainable energy and the increased awareness of environmental issues have consistently attracted investors, developers, contractors and designers in recent years. “Despite the relatively-high cost of these buildings at present, green and smart
buildings will become affordable in the near future with the ongoing research and studies on economic feasibility. This in turn will create more demand for smart buildings, thus opening new avenues for developers and investors and the constructionrelated industry as a whole.”
A mega economy
Riyadh’s flagship projects are its economic cities; created under the 10x10 vision for economic diversification, they also demonstrate the government’s commitment to secure KSA’s place as a top 10 world economy. The King Abdullah Financial District will host the Capital Market Authority headquarters, Stock Exchange, banks and financial institutions, becoming an ideal trading base for accountants, lawyers, consultants, and IT providers, among others.
Key investments The Riyadh Investment Authority (ADA) is investing US $3.816 billion in four projects in the capital city: Riyadh Light Railway (RLR), Al-Uruba and Abu Bakr Al-Siddiq road extensions Riyadh Ring Road/West Link Expansion of the King Fahd National Library by up to 57,000m²
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XXXXXXXX Market Explorer | XXXXXXXXXX | Riyadh
16.8%
built-up land in riyadh source: ADA March 2010 The study indicated that the built area of land in Riyadh, particularly in the north of the city, had reached 176km² — up 16.8% compared to 2005
FX Fowle has three buildings under design and seven under construction in KAFD.
“Sudair City will be the largest development of its kind in the region, accommodating more than 600 industrial projects and providing 40,000 job opportunities” Pioneered by the Rayadah Investment Company and covering 1.6 million m², it will be the first financial district in the region, with the regulatory and technological standards seen in other global financial centres. FX Fowle has three buildings under design and seven under construction in KAFD. Commenting on KAFD’s relevance, managing director Edward Mayer says: “Riyadh is a very old and underdeveloped city. It has been expanding exponentially over the past 80 years but there has always been a minimal amount of construction and new, large developments to put it into the modern market.” Explaining how technological developments in the rest of the world have driven ambition he adds: “Now there is a desire firstly to become a larger player in the world market, which started with the Organisation of Petroleum Exporting Countries, but is diversifying as oil runs out. Secondly there is a need and a desire to expand the infrastructure as well as the design of the buildings.” Drawing on the similarities in Turkey and India, he continues: “There are so many young people coming who need education
and independent housing, it has created this market all by itself, which is the easiest and best way for any country to stimulate its economy, and it’s a sustainable market.” Before KAFD is delivered, it will be eclipsed by Sudair City, a $40 billion 265 million m² industrial city in the Nejd region, north of Riyadh. Due in 2015 and spearheaded by the Saudi Industrial Property Authority, Sudair City will be the largest development of its kind in the region, accommodating more than 600 industrial projects and providing 40,000 job opportunities. Construction will include development of industrial land, a power plant, highways, drainage systems, a dry port and an industrial research centre. The project will also bring a variety of investment opportunities in the industrial, residential, commercial and service sectors. “These projects will draw the concentration of the populace out of the already congested centres, creating a more even spread of developments throughout the Kingdom and helping to bring employment, revenue opportunities and stability to the selected areas,” says Gibson.
Powering the Kingdom
Despite the glitz, Riyadh is still working on the basics, from roads to running water. The population is increasing on average by 2% year-on-year with half of the population aged 20 years old or under, and according to an ADA study conducted in early 2010, the area of built-up land has increased 16.8% since 2005. Yet transport, power and utility networks lag behind. “There is no point having world-class development without the infrastructure and currently it is not at the same level as the plans. Riyadh needs to take a more holistic approach to development, looking at the area as one whole project,” says Cityscape group director Deep Marwaha. A transport network, new road systems, a monorail, underground train system on the King Abdullah Road extension and a proposed railway station for commuters, are planned for the coming decade. Investment in a new 3900km railway system has now reached $25 billion and will include the North South Railway which joins the northern mineral belt with Riyadh and the industrial city of Jubail.
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XXXXXXXX Market Explorer | XXXXXXXXXX | Riyadh
RIGHT: KAFD is expected to become the leading financial centre in KSA.
Khaled Daou, project manager of Saudi Water Technology says the water and power sectors require at least SAR one trillion in investments by 2025
Railway investments
$25b BELOW: Visitors at Cityscape Riyadh 2010.
The amount invested so far in a new 3900km riyadh rail system and network, which includes the north south railway
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Rail is a vital form of transport for connectivity and trade across a vast and inhospitable environment; major projects funded by publicprivate partnerships include the Haramain high-speed rail line, the Land Bridge project and the North-South line. As the largest producer of desalinated water, the Kingdom of Saudi Arabia has 30 plants on the Red Sea and Arabian Gulf producing 3.6 million m³ of water per day. Despite a SAR 1.3 billion investment to date, KSA has the highest per capita water consumption in the world and even more investment will be needed over the next decade. Khaled Daou, project manager of Saudi Water Technology at Riyadh Exhibitions Company says: “The Kingdom currently depends on desalination for 70% of its water requirements and the rest comes from around 230 dams and hundreds of wells so the water and power sectors require at least SAR one trillion in investments to 2025.” Latest forecasts show that nine desalination projects are to be implemented within a few years, according to the Saline Water Conservation Corporation (SWCC). Additionally the government is launching conservation campaigns and is actively encouraging the private sector to take the lead in establishing and managing purification and desalination plants.
Furthermore, acceleration in the realestate sector is creating an economy of its own, with furniture, landscaping and electronics companies all reporting increased trade. Cityscape Riyadh saw huge demand for space at the show, with more than 50 realestate exhibitors. The Cityscape team says housing remains one of Riyadh’s primary property segments with prices due to increase by up to 10% by the year end. Marwaha adds: “There are vacant plots in the centre because of land prices that, compared to Jeddah, are four times higher, which is hugely disparaging. “In time, I expect that the pace of residential and retail developments will have a positive effect due to a greater supply, so prices will fall.” But he says “the best opportunity is by far in residential development,” echoing the need to couple these projects with continued infrastructure investment. The current focus is Vision 2020, which is an aspiration to cultivate small to mediumsized enterprises, diversify the economy, expand public services and streamline the public sector. If Riyadh proves it can deliver on the basics, its post-oil future could be even more lucrative than expected.
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XXXXXXXX THE BIG 5 | YOUR | XXXXXXXXXX GUIDE
wood plastics composites construction concrete metals glass finishes openings marble ceramic masonry stone thermal moisture protection communications electrical systems HVAC heating ventilation, air conditioning fire suppression protection plumbing water technology safety security equipment cabling fireextinguishing central cooling equipment electronic detection alarm concrete reinforcing precast concrete fountain plumbing systems decorative metal stone assemblies metal joists hardware glazing flashing sheet metal membrane roofing wall specialties earthwork mechanical utilities shoring underpinning tunnelling mining bridges wetlands lighting railways wood plastics composites construction concrete metals glass finishes openings marble ceramic masonry stone thermal moisture protection communications electrical systems HVAC heating ventilation, air conditioning fire suppression protection plumbing water technology safety security equipment cabling fireextinguishing central cooling equipment electronic detection alarm concrete reinforcing precast concrete fountain plumbing systems decorative metal stone assemblies metal joists hardware glazing flashing sheet metal membrane roofing wall specialties earthwork mechanical utilities shoring underpinning tunnelling mining bridges wetlands lighting railways wood plastics composites construction concrete metals Don’t be a dummy at this year’s The Big 5 taking place glass finishes openings marble from November ceramic masonry stone thermal 22-25 at Dubai World Trade Centre. From moisture protection communications insider scoops and exclusive speaker interviews to expert electrical systems HVAC heating on doing ventilation, airadvice conditioning firebusiness in the UAE and a handy map suppression protection plumbing highlighting must-see stands; The Big Project’s guide water technology safety makes getting security equipment cabling fire-the most out of the world’s third-largest construction event easy extinguishing central cooling equipment electronic detection alarm concrete reinforcing precast concrete fountain plumbing systems decorative metal stone assemblies metal joists hardware glazing flashing sheet metal membrane roofing wall specialties earthwork mechanical www.thebigprojectme.com | 39 utilities shoring underpinning
The Big Project’s guide to The Big 5
80%
BUYER INSIGHT Up to 80% of visitors are personally involved in buying the products or services
“The Big 5 is not a Dubai show, it is a regional show and our audience comes from far and wide just to buy”
Mellor: Our job is to make The Big 5 bigger and more exciting every year.
The show must go on DMG’s Simon Mellor and Andy White, organisers of The Big 5, tell The Big Project’s Melanie Mingas why the exhibition is still the place to be
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ast year, The Big 5 attracted more than 45,000 visitors from 71 countries. In 2010, despite project delays, job cuts and debt restructuring deals shaking the industry, The Big 5 is still big. Nearly 2000 exhibitors, big-name speakers and interesting industry product launches are drawing a crowd of thousands to the Dubai World Trade Centre for four days this month. “We are well aware that Dubai has had a slowdown but The Big 5 is not a Dubai show, it is a regional show and our audience comes from far and wide just to buy. We also get quite a few visitors from countries where we don’t do a huge amount of marketing,” explains event director Andy White. From the DMG Events office, White works with the group’s senior vice president for construction, Simon Mellor, to get the 2010 show on the road. It’s a process that began before the 2009 stands were even dismantled and the creative, contracts and floor plan for 2011 are already on the drawing board. “Our job is to make it bigger and more exciting every year. We attend shows all over the world and you’re always looking for fresh innovative approaches. “Research, particularly among exhibitors, echoes that this is very much a barometer for the Middle East region,” says Mellor. Among the fresh approaches at this year’s show are ‘country days’, product categorisation, large-scale conferences and new, accredited training opportunities. Building on the feedback from 2009, the show is more accessible for visitors and exhibitors, with more country pavilions and even personalised online
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accounts for businesses to book appointments with potential clients in advance. “Because of the size of the show you can be looking at anywhere between 200 and 400 companies bringing products and services that have never been seen in the Middle East before. For a lot of events, that alone equates to an entire show. “The buyers we reach out to know there isn’t anywhere else in the region where they can see the breadth and depth of international expertise, products and technology that they do here every year,” he adds. Whether it’s your first visit or you remember the inaugural exhibition, the focus this year is on maximising returns; on investment and time. White joined DMG in February this year, after 20 years’ experience on exhibitions, construction magazines and internationally-recognised events such as The Furniture Show and One Show; this is his first The Big 5. “Having worked in the UK for many years, one of the advantages of the Middle East is that you can have an open mind. People love to network; face-to-face contact is far more important here and we provide the platform where they can have that,” he says.
Building on success
Within DMG Events’ portfolio, The Big 5 is the largest show in the Middle East and North Africa and the third largest globally. The numbers speak for themselves; in 2009 the show hosted 45,177 visitors and 3143 companies, representing 71 countries; 18 countries more than the previous year.
Feedback from 2009 indicated that 80% of visitors appointed a new supplier after the show and 91% of visitors said the event is the only place to keep up with new products and market trends. White explains: “We’re audited now, and that is really important in the current climate as people need data they can trust.” The group says sales this year have been as strong as ever with new markets emerging in countries where the show isn’t even marketed. Mellor attributes the vigour to strong distributor markets: “The recession, in terms of the US and Europe, has been felt here but there are still a lot of distributors looking to promote their products across the MENA region. In a global context, the market here is actually quite positive.” With a strong drive on product categorisation, White says facilities services and facilities construction have both “fared well” this year. With billions of dollars of spending power under one — albeit huge — roof for four days, it’s easy to see the light at the end of the downturn. After a difficult 18 months, Mellor says raw material prices have now decreased and projects are being re-tendered and re-costed. In addition, training programmes will address the zeitgeist issues, which Mellor and White say are costs and the environment; particularly eco-friendly buildings and sourcing eco-friendly products. Highlighting the positives, Mellor added: “There will be a lot of people looking to the show for a sense of how the industry is performing and the fact that it is the same size as last year is an extremely positive message.”
Up to 29% of trade-show visitors never see sales representatives other than at exhibitions
Looking Forward
The event itself will remain the who’s who of the industry for a long time to come. The 22 speakers lined up for the conference programme over the coming days include names such as Turner International Middle East chairman and CEO Ali Odeh; Al Shafar General Contracting CEO Bishoy Azmy, Oger Abu Dhabi general manager Richard Chammas and TECOM Investments executive director Sougata Nandi. “I’m looking forward to the conference programme and the country days,” says Mellor. “The country days are a new initiative and an exciting one and it’s a way to broaden people’s outlook, which many are looking for.” Wishing the show’s visitors a successful and rewarding experience and a safe journey, he adds: “I am also looking forward to a quality team enjoying four days of the show. “They work hard all year for it and it is nice to see them rewarded with happy visitors and happy exhibitors.”
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29%
wood plastics composites construction concrete metals glass finishes openings marble ceramic masonry stone thermal moisture protection communications electrical systems HVAC heating ventilation, air conditioning fire suppression protection plumbing water technology safety Key Events Learning security equipment cabling fire“Training is a relatively new initiative this year,” extinguishing central cooling says DMG’s Simon Mellor. equipment electronic detection “The opportunities are significant; many large alarm concrete reinforcing professional organisations have provided strong, precast concrete fountain international, credible trainers.” Adding to the demand is a desire in the job plumbing systems decorativemarket to “look for that little edge” at a time metal stone assemblies metalwhen joists many companies are shedding staff. hardware glazing flashing sheet Certified courses cover dispute resolution, safety for senior executives, project management and metal membrane roofing wall leadership, construction waste and waste manspecialties earthwork mechanical agement, structural engineering and understandutilities shoring underpinning ing LEED ratings. tunnelling mining bridges The seminar programme covers marketing, wetlands lighting railways sales, green products and improving processes wood plastics composites through technology. More than 20 speakers from the most significant companies will lead conferconstruction concrete metals ences on topics including financial stability, proglass finishes openings marble curement and delivery and safety. ceramic masonry stone thermal moisture protection communications Country days Providing leads and practical tips for doing busielectrical systems HVAC heating abroad, the country days are a new initiative ventilation, air conditioningness fire assembling key governments, product managers suppression protection plumbing and contractors. water safety Visitortechnology breakdown 2009 “At the moment we have a number of country security equipment cabling firedays planned. They will be short sessions for people to find out how they can break into key markets. It extinguishing central cooling UAE gives companies a chance to ask ‘how do I expand equipment electronic detection business from the UAE?’ and I think that’s a alarm concrete reinforcing my very good opportunity,” says DMG’s Andy White. precast concrete fountain plumbing systems decorativeGaia Awards GCC (inc. UAE) assemblies metalNow in their third year, the Gaia Awards are metal stone joists intended to raise the profile of “environmentallyhardware glazing flashing sheet sound” products and services in the GCC region. metal membrane roofing wall Judges from government, local developers and specialties earthwork mechanical contractors award bronze medals for commended Other countries utilities shoring underpinning products, silver for highly-commended and a sintunnelling mining bridges gle gold award for the “most exceptional”. wetlands lighting railways “There is very little benchmarking in the indusso a number of companies are starting to wood plastics composites try come forward with the news that commercially construction concrete metals they are winning business because of the award. glass finishes openings marble That’s where it starts to get quite interesting and people realise the value at stake of being ceramic masonry stone thermal involved,” comments Mellor. moisture protection communications Silver award winner 2009 CME Sanitary electrical systems HVAC heating Systems’ Manjit Lall adds: “In today’s current enviventilation, air conditioningronment, fire all businesses need to show responsibilsuppression protection plumbing ity, be it through their products or processes.”
26,572 32,553 12,624
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Doing business in the UAE From the concept of “Dubai time”, to the promise that a deal will be done “insh’alla”, business over borders can present as many obstacles as it does opportunities. Here, etiquette coaches and exhibitors from The Big 5 give their tips to those branching out for the first time
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t’s home to some of the world’s tallest buildings, biggest businesses and the majority of global oil reserves, but not everybody who trades in the Middle East finds the cultural shift easy to adapt to. The Big 5 attracts visitors and exibitors from all over the world and bad business etiquette can cost contracts and cash. So how do you successfully break into new markets when you’re not sure how to address clients, when or if to shake hands or when the weekend falls? Michael Lorrigan is managing director of Spearhead Training, provider of business etiquette courses in the Gulf. He says: “Business here has its own etiquette and culture, and successful companies are the ones who show flexibility and tolerance to understand this. “The problem with big companies and corporations is they seem to have this notion of ‘one size fits all’. “I am a great advocate of: ‘think globally, act locally’. The world is made up of diverse cultures and nationalities and showing some respect for where you are living locally is vitally important. I attended a seminar this year where the chief executive of a leading international management institute told the audience a story about a pig — not very culturally sensitive in an Islamic country!” While there may be challenges, global markets mean global competition and businesses today can’t afford to miss out; or mess up. Lorrigan adds: “It really doesn’t take that much to have empathy with the cultures that we see here in the Gulf and you can easily break barriers; I half jokingly tell managers on courses to read the sports pages and learn about the sporting heroes of clients.”
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Lost in translation
If national stereotypes are anything to go by, there are few more diverse than those of the Middle East compared to Europe. Darius Khanloo, managing director for Hörmann Middle East, began working internationally in 2003. Initially handling European operations, he moved to Dubai in 2005. “In Germany, everything is organised and has a system, hence you know what to expect. Here, you have to be on your toes at all times because unexpected things are always bound to happen,” he explains. “At home, the main focus is the reputation and quality of the product; in the Middle East relationships come first and products second. Here it is more important to get to the person in charge of specifying the products or purchasing, than building a relationship with them.” Having built their whole business on export growth, German company Carl Stahl GmbH is well versed in foreign markets. Thomas Krieger from the company’s management business unit gives three tips: “Hold onto the ‘German mentality’, because the clients appreciate that; cool down when you receive huge enquiries and remember that in business, sustainability is better than speed.” International brand recognition also poses problems when selling a product in new markets. Without a reputable identity, many companies see unknown brands as a gamble, no matter how established they may be in their domestic market. “For us, the main challenge is reminding customers that goods made in Germany are not comparable with good from the Far East,” Krieger adds. One thing new brands can do is gain
international accreditation. Kuwait-based refrigeration company Coolex gained ISO certification to help its expansion. Managing director Her Highness Sheikha Intisar Salem Al-Ali Al Sabah says the importance of brand recognition in Kuwait means locally-manufactured products are overlooked. “In other Middle East countries; the markets are more widely open to the international and local manufacturing products,” she says. Yet big names are not the bottom line. Lorrigan believes an understanding of cultures and practices will break any barrier. “You can’t come in as a big corporate name and ‘assume’ you will be accepted. Businesses which are new to the region need to understand how business is conducted here. Things are changing, but to do business effectively you have to build trust and long-term relationships, whatever your size,” adds Al Sabah.
A little respect
Everyone conducting business in the region has their own advice for the next company eyeing new markets. But for the exhibitors this year, the overriding motto is respect. Edgley gives three tips: “Understand the culture of the people as well as the market; understand what motivates local people and what is important to them; be aware of cultural differences and be prepared to modify your own behaviour and mentality accordingly. “In the Middle East customers have a greater expectation of the support they want and environmentally it’s a more demanding market, requiring a higher specification of product.” Citing his top three tips as “customer, customer, customer,” Lorrigan concludes: “Respect comes from working with trust and integrity”.
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XXXXXXXX THE BIG 5 | BUSINESS | XXXXXXXXXX CULTURE
wood plastics composites construction concrete metals glass finishes openings marble ceramic masonry stone thermal moisture protection communications electrical systems HVAC heating ventilation, air conditioning fire suppression protection plumbing water technology safety security equipment cabling fireextinguishing central cooling equipment electronic detection alarm concrete reinforcing precast concrete fountain plumbing systems decorative metal stone assemblies metal joists Tips and hardware glazing flashing sheet metal membrane roofing wall challenges specialties earthwork mechanical utilities shoring underpinning tunnelling mining bridges wetlands lighting railways Francois Xavier, sales and wood plastics composites marketing director, CLIMATECH construction concrete metals What are the main challenges of doing glass finishes openings marble business in the UAE? We always need to adapt to our customers’ ceramic masonry stone thermal way of doing business moisture protection communications electrical systems HVAC heatingWhat are your top three tips for dealing ventilation, air conditioning fire with different business cultures? suppression protection plumbing • Know the cultural, political and economic environment of the country water technology safety security equipment cabling fire- that you plan to do business in. to your potential business extinguishing central cooling • Adapt partners’ requirements equipment electronic detection• Prepare to be inventive and construcalarm concrete reinforcing tive in all situations precast concrete fountain plumbing systems decorative Canan Tekdemirkoparan, international marketing metal stone assemblies metal joists manager, Dizayn Group hardware glazing flashing sheet What are the main challenges of doing metal membrane roofing wall business in the UAE? The culture, purchasing habits, customer specialties earthwork mechanical utilities shoring underpinning expectations and legislation can all pose diffferent challenges. tunnelling mining bridges wetlands lighting railways What are your top three tips for dealing wood plastics composites with different business cultures? construction concrete metals To analyse the country and the market, to glass finishes openings marble understand the culture and needs of people and to understand their lifestyle is very ceramic masonry stone thermal important for making business in different moisture protection communications countries. Of course legal issues are also electrical systems HVAC heatingimportant factors.
GianPaola Pedretti, brand manager building & construction exhibitions, Veronafiere What are the main challenges of doing business in the UAE?
The harmonisation of the international building and construction market: same rules, same procedures, same safety standards and same quality. What are your top three tips for dealing with different business cultures?
Try to find a balance between your needs and habits and those of the people in front of you. Negotiate everything in order to have the same amount of advantages and disadvantages as the counterpart.
Marc Trap, managing director, Trap Hardwood Industry What are the main challenges of doing business in the UAE?
Building a personal relationship based on trust and commitment and being in it “for the long run”. What are your top three tips for dealing with different business cultures?
Listen before speaking and invest time and money to support the sales. Finally, always think long term
Nicolas Seyfried, sales manager, KraussMaffei Technologies GmbH What are the main challenges of doing business in the UAE?
The main challenge is to keep in pace with the demand originating from the Middle East. What are your top three tips for dealing with different business cultures?
Be respectful, be fair and be patient
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The Big 5 MAP Many of the exhibitors will be launching new products at this year’s event, but here are a few of The Big Project’s favourite must-see stands and new products
Red Shuttle Bus (pick up and drop off )
Dubai Mall Shuttle Bus
Green Shuttle Bus (pick up and drop off )
Valet Service
Taxi Shuttle Bus
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Company: Jehan Green (C51) Must-see product: 3D panel systems for low-rise construction projects
HalL SEVEN Company: Kuwaiti Global Alliance WLL (E320) Must-see product: The newly-launched concrete technology, which increases efficiency by 50%
Zabeel Hall
HALL ONE
HALL TWO
Company: Saia-Burgess Controls (Swiss Pavilion) Must-see product: Energy monitor system; monitors energy to encourage lower usage
Company: Reynaers (E21) Must-see product: Architectural aluminium system, a wood and aluminium system for doors and windows
Company: Teletower Access Solutions (F91) Must-see product: The world’s first telescopic mobile access tower. It reaches four meters and is easy to assemble
XXXXXXXX THE BIG 5 | EXHIBITION | XXXXXXXXXX MAP
HalL NINE
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HOK regional SVP Daniel Hajjar.
Dubai can’t be built in a day Ahead of hosting his first seminar at The Big 5, global architectural firm HOK’s regional senior vice president Daniel Hajjar provides a view from the frontline of sustainable design
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roviding consultation, planning and design for the built environment, HOK designed the first LEED-rated airport terminal at Boston Logan International and provided retrofit for Hong Kong’s first LEEDrated offices. It is this experience which has given the company’s senior vice president and regional manager for MENA, Daniel Hajjar, the insight and understanding to analyse how the region works and how it can work smarter. Drawing on Dubai as an example, Hajjar explains how futuristic design and fast-paced construction isn’t always progressive. “When you look at the old desert cities and how they grew; it made sense. These cities still have a core to them and are compact with local services and shaded streets. “If you look at Diera, the streets, cityscape and actual scale of the area, it’s better designed than Sheikh Zayed Road; because when you develop along a line you’re stuck. Cities don’t work along a line, they work when you actually have a network that connects up.”
Desert to metropolis
Hajjar has been in the role since the company’s expansion into the region in 1999. Witnessing
“You can see which buildings are built during a boom, because you look back afterwards and think ‘why did we do that?’”
first hand Dubai’s growth from old desert city to modern-day metropolis, his experience of how the built environment needs to serve the social and cultural environment is extensive. “There is a whole societal aspect to knowing how to build a city and knowing what that society will accept,” he explains. From the height of garden walls to neighbourhood amenities, these aspects underpin the success of developments. To “really crack the nut of what people want”, he says developers must concentrate on these needs to reduce expensive retrofits and energy consumption. In a time when more people commute than ever before, Hajjar says basic requirements; national railways, reliable and renewable power sources and localised amenities, are increasingly urgent, especially following a lack of focus during the boom years. “You can see which buildings are built during a boom, because you look back afterwards and think ‘why did we do that?’ “You need to take a sobering look at what you’re doing and how you’re doing it. Cities don’t happen overnight.”
A rocky road
There was no period more sobering than 2008 and the seismic shift in priorities — in both the industry and daily life — is still producing shockwaves. While he says the key benefit is that those who survived want to be here, the region is not immune to future turbulence and there are even more issues facing green design. “There were a disproportionate number of speculators to investors and their priorities are different. To really address that in the future there has to be some fundamental structural shift but I don’t think we’re there yet.”
In terms of the future, Hajjar says asking key questions and returning to simplistic, tried and tested design will increase the sustainability of communities: “People want security, decent infrastructure and good schools. Those attributes are global and communities need to be designed in a certain way.”
HOK Topics
Where and when: Wednesday November 24, 9:30—10am Sustainability in the Middle East: Reality Vs. Perception What will you speak about? “In this part of the world, our carbon footprint is substantial and disproportionate to the population. We need to ask if we have gone too far in terms of building and creating. One of the big challenges everyone is going to face here is understanding what is genuine sustainability and what is green wash.”
Why do people need to hear this? “The world is moving on; there is a change happening now; environmental, social and financial factors have come together in a way unprecedented since the US depression and I think there is going to be a fundamental shift in how people live their lives and how we design for that.”
BOOM-TIME FACTS
4852 BUILDINGS UNDER CONSTRUCTION IN 2004, AT THE HEIGHT OF DUBAI’S BOOM PERIOD. RESIDENTIAL REPRESENTED 74% OF PROJECTS
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DUCAB OFFICES AND DISTRIBUTORS: Offices: Dubai: Dubai Cable Company Pvt. Ltd. (Ducab), P.O. Box 11529, Dubai, United Arab Emirates, Tel: (971-4) 808 2500, Fax: (971-4) 808 2511, Oman: Ducab Oman- Tel: (968) 2456 5177, Bahrain: BICC MET W.L.L Tel: (973) 1772 7071, Qatar: Ducab Qatar LLC - Tel: (974) 3320 9077, KSA: Tel: (966) 563 212 090. Distributors: Dubai: Beta IndustrialTel: (04) 706 9777, Electromec Company -Tel: (04) 222 9352, Haji Commercial Establishment - Tel: (04) 267 0480, Prakash Trading Company- Tel: (04) 286 3363, Zubair General Trading Establishment- Tel: (04) 336 2532, Al Shamali & Waris Trdg. Co.-Tel: (04) 299 1377, Electric Way LLC- Tel: (04) 333 0479, Thomsun General Trading LLC- Tel: (04) 885 4000 Sharjah: Al Jallal Electrical Trading - Tel: (06) 554 9593, Abu Dhabi: Marjan (BICC Al Jallaf) - Tel: (02) 622 2320, Bahwan Trading Company- Tel: (02) 6414316, Qatar: JBK Ducab W.L.L, Tel: (974) 442 1924, Teyseer Industrial Supplies & Services Co. (TISSCO) - Electrical Supplies Division - Tel: (974) 458 0529/468 2344, Al Khayarin Group Trading & Contracting- Tel: (974) 436 3366/431 8461
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Preview: Yusuf Akcayoglu TAV Construction’s Gulf regional director Yusuf Akcayoglu comments on hosting his first The Big 5 seminar: ‘Using win-win contracts to benefit developers, main contractors and MEP contractors’
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usuf Akcayoglu joined TAV Construction, the world’s third-largest airport contractor in 2004. He has been Gulf regional director since 2007, spearheading TAV’s airport and high-rise developments across the Middle East. It is the first time he has presented at The Big 5. The Turkish company has more than US $104 billion worth of projects currently under contract and has worked on airports in Doha, Istanbul and Cairo.
What is your seminar about?
A psychological barrier remains after the financial crisis and since then we have been working on a build-operate-transfer model (BOT). Our company was the first initiator of it in Turkey, we have now used it on several projects and we want this model to be used in the Gulf. You do the forecast, let’s say for an airport for how many passengers can travel, the calculated revenue and estimated profit. Then you send the project to the financial institutions to raise money and begin. BOT is the win-win situation because the motto behind it is; the earlier completion, the earlier the revenue generation. Delivering things quickly is one of our distinctive qualities.
What is the key to delivering projects on time against the odds? Firstly we are a specialised company, focused on airports. We have very good people in the business. Plus in major sub-contracting packages we purchase with repetitive procurement so our suppliers and sub-contractors know what we want and we work well together. We also seek design and build contracts rather than build only, as in our experience they can be delivered more efficiently. Construction is about on-time and on place, installation and delivery.
What are the main issues facing the industry?
There are no tenders; it’s very competitive and the profit margins are almost gone. The companies are struggling now to keep their staff in work and prevent losing their talented people. Keeping staff busy is always a challenge. Luckily we have projects in Qatar and Muscat and so far in Dubai our projects are doing well. Of course it’s a little bit of luck, but in the meantime we are always careful to look after our clients and keep our people busy.
Do you have any tips for first time visitors to The Big 5?
In Dubai, the materials and concepts are very different from Europe and other emerging countries. For suppliers, they must keep in mind that their presence should be in the region full time. Sometimes they just trade and leave, but this doesn’t work. They need to have their warehouse and samples and quality standards and comply with the market standards. For the contractors, we have done things by trial and error that cost us money. For a company to switch on a project here, of course the first one may not make money, so they want repetition, so the contract department must be very strong and standards must be high.
What’s the future for TAV?
In 10 years’ time we want to see our company number one in the world for airport construction. Currently the Engineering News Record ranks us at number three. Akcayoglu will be joined by fellow panellists Samer Arafa, executive vice president and member of the board for AL-Arrab Contraction Co and Sougata Nandi, executive director, TECOM Investments. The discussion will be held Tuesday November 23 at 12:30pm.
“BOT is the win-win situation because the motto behind it is; the earlier completion, the earlier the revenue generation”
Why should people attend the conference you are hosting?
Our experiences are from real life; we are the people taking the risks so if a project goes wrong everybody else gets their fees but we don’t. The discussion panel taking place at The Big 5 will be interesting to a lot of people, especially the topic on how to manage a project where there are conflicts with the client.
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XXXXXXXX THE BIG 5 | chat | XXXXXXXXXX
Crisis? What crisis? In spite of a turbulent two years, The Big 5 exhibitors tell The Big Project they are confident about the business potential of this year’s show
“We’re looking forward to a revival in the economy and raised spirits”
“Our motto is ‘recession out and progression in’. Currently, the main challenge is the general business outlook and the ripple effects of the recession, but 2010 has so far been promising in terms of stabilising delayed projects. We hope that the trend continues and the construction world revives with every passing month.”
“We increased our collaboration and partnerships with a few key players to focus our activities in the UAE and Middle East market following last year’s The Big Five.”
Ali Khalaf, managing director, Reynaers Aluminium
“We’re attending to achieve positive results and establish new relationships. The Big 5 is well known as a professional meeting arena for almost all sectors in the construction field, where exhibitors and visitors get to know the latest trends.” Hassan Attar, general manager, Attar Steel Company
Marc Trap, managing director, Trap Hardwood Industry
“After last year’s event, we changed our long-term business strategy and vision for manufacturing air conditioning and refrigeration products.” CMD Her Highness Sheikha Intisar Salem Al-Ali AlSabah, chair and MD, Coolex Refrigeration
Value of active building projects in the Middle East – October 2010
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SUB-SECTOR
LARGEST COUNTRY
THIS YEAR (US $ MILLION)
NEXT 3 YEARS (US $ MILLION)
Commercial
UAE
4,362.78
7,146.26
Education
Saudi Arabia
1,615.97
2,691.49
Healthcare
UAE
Hotel
Egypt
Mix
UAE
Other
Saudi Arabia
Residential Retail
623.61
2,769.09
1,333.64
2,796.57
104,021.26
232,326.72
149.89
800.79
UAE
14,027.84
25,438.54
UAE
572.47
659.18
Green Building by Uponor – radiant cooling solutions BIG 5 Show Visit us at the 010 22.11. – 25.11.2 h no. O123 Boot n, Zabeel Hall, German Pavillo r comprehensive portfolio ou and get to know
AD Our water-based underfloor cooling solutions are silent and invisible with highest comfort. They are the ideally combination for sustainable and green building projects. At Bangkok ’s new international airport, for example, we combine the biggest underfloor cooling project of all times with a state-of-the-art solution in terms of energy-efficiency. Due to our experience in large scale projects we offer also services for indoor climate solutions such as concept design, simulations up to energy feasibility studies for entire buildings. Our objective is to develop and offer first class and environmentallyfriendly systems, which contribute to a constant improvement of the living and working environment. Our offering covers the whole spectrum of cooling, including also sophisticated control systems. And of course, we provide you with tap water installation from the source up to the latest tap. To find out more about Uponor, just visit us at the German Pavillon at the BIG 5 Show in Dubai. For more information, just contact us: Phone ++49 9521 690 782, e-mail international@uponor.com www.uponor.com/international
The Leaning Tower of Abu Dhabi Unlike The Leaning Tower of Pisa, one of the Seven Wonders of the World tilting 5.5° to the south, the 18° inclination of the Hyatt Capital Gate — opening early next year — was no accident. The Big Project looks at the technologies and challenges behind Abu Dhabi’s very-own wonder
W
hen The Leaning Tower of Pisa first began to tilt, the town considered it an embarrassment. Yet for Abu Dhabi’s Hyatt Capital Gate, an 18° incline is its most-prized feature. Made possible by a combination of post tensioning and the first-known use of a pre-cambered core, the 35-storey building used more than 15,000m³ of concrete, reinforced with 10,000 tons of steel and took more than three years to complete. Opening early 2011 and standing at 160m, it is the cornerstone development of the Abu Dhabi National Exhibition Centre’s (ADNEC) Capital Centre; a 23-tower, US $2.2 billion mixed-use “micro-city”. Pioneered by global architect RMJM, with owner and developer Abu Dhabi National Exhibitions Company, the design posed a number of challenges; from the structural support to interior design. Calling it “awe inspiring and iconic”, Capital Gate sales director Adrian Hearn says: “Many aspects related to this iconic tower present design challenges, given there are no rectangular interior floor spaces. Various applications and finishes to all surfaces follow curved lines, the outside plan shape of walls and ceilings, the elevation walls of lift shafts and the vertical curving of the skin grid. “In addition, every single floor plate has a slightly different shape from the level below or above. In summary, straight horizontal and angled line patterns working to ever-changing plan perimeter curves from floor to floor.” To create the curve, floor plates are stacked vertically up to the 12th storey, then staggered until the 29th by 800 to 1400mm in relation to the shell. From the 29th to the 35th floors they range between 900 and 300mm in line with the facade. The overturning moment this creates is countered by a large podium footprint.
Standing tall
The facade was constructed using 700 diamond-shaped glass panels which form a dual diagrid system; Hyatt Capital Gate is the first building in Abu Dhabi to use this technology. Created with 8500 structural steel beams, the heaviest individual diagrid weighs 16.5 tons but
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uses less steel than conventional frames, reducing costs and benefiting the environment. It is the same technology used for London’s “Gherkin” and the Hearst Tower in New York. “Globally, diagrid structures have been emerging as a new design trend for tall buildings with their powerful structural rationale and aesthetic potential,” says Gordon Affleck, design principal for RMJM Middle East. “The incredible technical achievement and aesthetic splendour of Hyatt Capital Gate ensures it will be regarded around the world as one of the most magnificent buildings ever constructed,” he adds. To protect against gravitational, wind and seismic pressures, the foundations of the building are formed from 490 piles, dug up to 30m underground and reinforced with 7000m³ of concrete. Above the foundations is a 2m-deep concrete base, filled with a dense mesh of reinforced steel. Designed to mimic a wave, the building also features a ‘splash’; a completely independent steel canopy that has been fixed to the main building with I-beams. And with its 18° westward incline, the Hyatt Capital Gate holds the world record for the world’s furthest-leaning manmade tower.
Signature buildings
The building will comprise offices and a hotel, offering city and coastline views, while providing a “sense of flotation” through the interior design and a pool which appears to be suspended in mid-air from above. “The convex curve of the structure seems to make the building disappear on the north west elevation. Equally on the opposite side of the building, facing south east, there will be even more dramatic bedroom views and a gravity play with flotation where the 19th floor cantilevered swimming pool seems to be suspended mid-air,” says Affleck. It’s not the first European landmark Abu Dhabi has emulated, with the development of a Guggenheim and the Abu Dhabi Louvre planned for Saadiyat Island. Yet the objective for Hyatt Capital Gate is not to emulate existing landmarks, but rather to create developments that look towards the future. “Capital Gate is a landmark development for Abu Dhabi. It is a signature building which speaks to the foresight of the emirate,” concludes ADNEC chairman HE Sheikh Sultan bin Tahnoon Al Nahyan.
LEFT: Standing at 160m, the Hyatt Capital Gate is expected to open in Q1, 2011.
BELOW: The ‘splash’ is an independent steel canopy fixed to the main building with I-beams.
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XXXXXXXX ICONIC STRUCTURES | XXXXXXXXXX | CAPITAL GATE
“To protect against gravitational, wind and seismic pressures, the foundations are formed from 490 piles, dug up to 30m underground and reinforced with 7000m³ of concrete”
Construction trivia
First Abu Dhabi building to use diagrid technology, deemed a new design trend First known use of a pre-cambered core 160m tall 8500 structural steel beams 700 diamond-shaped glass panels Inclination: 18° leaning tower of pisa inclination: 5.5° Foundations: 490 piles Piles 30m deep 7000m³ of concrete reinforcement
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XXXXXXXX PROJECT UPDATE | XXXXXXXXXX | AJMAN 1
RIGHT: Ajman 1 is on track to be delivered at the end of 2011. BELOW: A rendering of one of Almeria Bay’s Marina Precincts.
Real about real estate Aqaar CEO Rami Dabbas says phase one construction of the AED 2.7 billion Ajman 1 project will be delivered in Q4, 2011, however being realistic about the real estate market has led the developer to re-evaluate phase two
T
here is no place for exaggeration or stubbornness, there is only reality, Aqaar CEO Rami Dabbas tells The Big Project, having revealed that phase two of Ajman 1 — its flagship project — may be re-evaluated. The Ajman-based real estate and property development company started infrastructure works on phase two of its Ajman 1 residential, commercial and hospitality complex in April 2008. Pilings are complete, but Dabbas says the scope may be reviewed from initial plans for three 26-27 storey office towers, a convention centre and a four-star business hotel with serviced apartments. “The market is correcting itself, so we will complete the project the right way. After we’ve finished phase one we will look at the hotel. “The location of the project is very strategic, there are so many hotels under construction in Ajman so I believe there will be demand for a four-star hotel with proximity to the beach, but we will finish phase one before getting involved in another market.” On the other hand, Dabbas claims there have been no delays encountered on the AED one billion first phase. With finishing works including cladding underway, the development comprising 12 freehold residential towers is on track for delivery at the end of 2011. Meanwhile, the group’s Almeria Bay project, which was launched in 2008 deemed “a new landmark for Ajman”, is also being reviewed by the developer based on the “current market scenario”. The project involves land reclamation to make space for its five precincts comprising Icon (residential), Lifestyle (residential), the Hotel precinct and two marinas.
“We haven’t finished the design, we have to re-evaluate and be realistic — we are keeping everything flexible.” But Jordanian-born Dabbas has lived in the UAE for more than 14 years and remains positive about the project market potential in the emirates. “Over the past several years there have been so many changes to the region’s realestate market, but one of the best things to come out of the last two years is that we got rid of the speculators. They are bad for the market,” he asserts. The majority of Aqaar’s client base comprises end users. “People are starting to realise that real estate is a long-term investment and it is here to stay,” he adds. Furthermore, Dabbas is hopeful about Ajman’s tourism prospects: “The emirate has beautiful beaches; it is just waiting for someone to take advantage of that.”
Profile Civil engineer Rami Dabbas started his career with Dar Al Handasah (Shair & Partners) in Amman and London, and later completed a management training programme with Arab Bank. He joined Emaar Properties (Dubai) in 1998, but after six years he left his role as director of projects to take up his current post as Aqaar Properties LLC CEO in Ajman. He also works as head of real estate development for Ajman Development & Investment Authority (ADIA).
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XXXXXXXX CASE STUDY| XXXXXXXXXX | ESAB LEED PLATINUM
Born LEEDer Esab Group managing director Johan Frannson downplays building one of the Middle East’s only commercial buildings rated as LEED Platinum, saying it was all “pretty straightforward” Established in the region since 1981 and internationally since 1904, environmental issues are embedded in Esab Group’s culture, according to managing director Johan Fransson. But the company — which produces consumables and equipment for welding and cutting processes — took its sustainable agenda to a new level recently with the launch of a new US Green Building Council-accredited LEED Platinum manufacturing facility in Jebel Ali South Zone, Dubai, having outgrown its previous regional headquarters there. So what did it take to achieve the highest LEED rating for a green building? “We started the feasibility study in 2006 and got the green light to go ahead with the project in 2007. The LEED system was a good guideline for the sustainable design of the building. Construction started at the end of 2008 and took just over a year to complete,” he says. While Fransson declines to reveal how much the initial investment of the facility cost, he says annual energy consumption has been reduced by 60-70% and the group expects to see a return on investment within five years.
Not rocket science
And this has been achieved with a lot of technological solutions that have been used many times before, according to Fransson (see box out for full details). “We haven’t built a spacecraft; it’s a straightforward building that is very practical.” In fact, many of the solutions used are already incorporated as standard in more developed European construction markets. Some of these include: properly insulating the building with 100mm insulation in the walls and 200mm on the roof, incorporating
heat-reflective windows and implementing a number of lighting-management solutions and energy-saving controls. “We have put motion sensors on the lights that are sensitive to movements and daylight.” Furthermore, 1500 solar tubes have been implemented on the roof, creating energy to heat water, which is then pushed through a heat exchanger to create cool water that can be converted to cold air and used for cooling the building’s structure. While the facility still features a conventional air-conditioning system, the system required is significantly smaller. “This also results in a nicer indoor climate because you don’t have noisy air-conditioning units, the room temperature is stable and the level of indoor air quality is better. “The environmental improvements make the staff happy and me happy because they save money,” he adds. The group made maintenance of the site as automatic as possible, he explains, and has also invested in an extensive maintenance agreement for the first year. “Being sustainable feels good, makes sense and it is supported by sound payback,” Fransson concludes. ●
How Esab achieved LEED Platinum APPLIED TECHNOLOGIES – 1500 solar tubes on the roof – Chemical heat or cold conversion – Hollow core structure cooling – Wind-driven ventilation fans – Onsite water recycling – Lighting management – Concrete sandwich panels in external walls – Reflective coating on all horizontal surfaces
AIR-CONDITIONING – Solar panels generate hot water – Hot water converted to cold water in climate well units – Cold water fed to air-handling units to create cold air – Cold air fed through hollow core slabs in building structure – Resulting in cooling building interior
ONSITE WATER RECYCLING – Fresh water stored onsite for domestic and fire-fighting use – Domestic waste water processed on site – Recycled water used for toilet flush and irrigation – Excess, if any, dispatched offsite – Shortage, if any, topped up from DEWA mains
RAINWATER – Permeable interlocking – Rainwater dispersing pits – Elevated warehouse
HEAT – Green Wall thermal insulation – ThermoShield heat deflection – RAK Windows heat deflection
LIGHTS – Building Management System (BMS) lighting controls implemented – Motion detectors and timers – Outside light sets interior intensity – Lights default to ‘off’ setting
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XXXXXXXX | XXXXXXXXXX TECHNOLOGY | BIM
The Future of construction The Big Project weighs up the pros and cons of Building Information Modelling (BIM) to establish whether clients, designers, developers and contractors should be jumping on the interoperability bandwagon
A Autodesk’s Anders Arthur.
BuildingSmart ME’s Dave Jellings.
t the end of this month, not-for-profit organisation BuildingSmart ME will release the results of a survey that could have a major impact on the common construction process utilised in the Middle East. Since its launch in 2009, BuildingSmart ME — part of BuildingSmart International — has promoted ‘interoperability’ utilising Building Information Modelling (BIM) technology as a way of reducing costs and boosting the efficiency and sustainability of a project. BIM effectively creates a construction project in a virtual environment. Not just for visual purposes, the model is an accurate, dimensional representation of a building, which stores all of the relevant design and construction data. “For hundreds of years, people built physical prototypes. It’s only in the last 20 years that people have been able to build digital ones, and much more recently they’ve had the capacity to explore a project’s multiple dimensions — what it will look like, how it will work, and how it will perform,” software vendor Autodesk
regional director for the Middle East and Africa Anders Arthur explains. “Digital prototypes give you the ability to visualise, simulate, and analyse a digital model and to better understand the project. “It allows you to experience it before it’s real. We can use Building Information Modelling techniques to understand the acoustics or the day-lighting or the energy that will fall upon a space,” he continues. “For example, there are hundreds of decisions that go into most buildings. But if you asked most architects whether a change in orientation or using double-paned glass, increasing the overhang or changing the material will cause the building to need more or less energy to heat and cool, they probably wouldn’t know. Digital models enable them to answer those questions quickly and with certainty.” There are two ways that the model is used; either basing BIM on traditional design processes, or more effectively, creating a single model right from the concept stage through to
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LEFT: BIM is being used in the Louvre Abu Dhabi construction process. BELOW: The technology is also being utilised for the Zayed University development in the emirate.
“We’re changing from two-dimensional AutoCAD drawings to threedimensional modelling. In five years, 2D drawings won’t be part of the construction process.”
construction and building management. “So you’re using one single source and updating that model, whereas currently a new design is produced and sent out to a number of contractors, who all produce their own elements of that design and there are thousands of hard-copy drawings floating around. With BIM, all construction stakeholders can work with the same information at the same time through one model,” BuildingSmart ME communications director Dave Jellings told us last February.
Failure to launch However, The Big Project caught up with Jellings again last month, and his message was the same: the Middle East is lagging behind in terms of its technology deployment. “The construction industry in the Middle East is using 20 to 30 different technologies for every large project and none of these are designed to communicate with each other. So if you want to transfer data between one contractor and another it’s a very difficult process and instead of sending electronic data, which is usually faultless, you end up sending a hard copy,” observes Jellings. “The technology BuildingSmart promotes is collaborative, which basically provides the process and software to enable the current platforms to communicate. So you immediately have the advantage of being able to work from
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INVESTING IN TECHNOLOGY
0.5%-1% The approximate investment required to implement BIM from the early stages of the construction process
the same information at the same time.” He adds that only around one third of the region’s construction industry is aware of BIM, but while it is still a relatively unknown entity, the organisation claims to be receiving support from major industry players — currently “half of the top 10 contracting firms in the Middle East because they’ve realised BIM is the future”. In order to accomplish its mission to make BuildingSmart — interoperability through BIM — the standard process in construction, there are a number of obstacles that first must be overcome. Jellings outlines these as a lack of skills and mandating, and low industry awareness of the technology. He cites Singapore as an example of a developed construction market where BIM is now mandated by government, and Scandinavia is heading the same way. Likewise, while the UK is still considered slow to adopt the technology, the government is expected to mandate BIM on a number of trial projects in April 2011. “The world is waking up to 3D modelling,” concludes Jellings. In fact, BuildingSmart is not looking for the technology to be made mandatory in the Middle East, at least not in the short-term, but it is seeking endorsement from the regional
rETURN ON INVESTMENT
5% The estimated savings on a project that implements BIM technology from the early stages of the process
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Lack of understanding Currently even those that are aware of BIM often fail to fully understand it and those using it are often doing so incorrectly, according to BuildingSmart. “Many firms have dipped their toes in the water, but very few understand the technology. There is a lack of knowledge,” says Jellings. Murray and Roberts technical manager Ron Brinkman observes that BIM requirements are already starting to be written into the tender
BIM reduces the amount of paperwork needed in a project.
documents for Middle East projects. Furthermore, he expects that after one year, project partners on developments worth more than US $500 million will be required to implement BIM. As time goes on, this will also be applied to smaller projects, he suggests. “We’re changing from two-dimensional AutoCAD drawings to three-dimensional modelling. In five years, 2D drawings won’t be part of the construction process.” But Jonathan Lock, structural CAD manager and Arup Tekla global account manager at Arup London told The Big Project on the sidelines of the Tekla Middle East Managers’ Day 2010 in Dubai, last month, that until the client comes in and demands the model, the adoption process will fall down. “Because it’s a new process, it’s being written into the contracts that BIM must be used. These contracts should outline the process to be followed and identify the key deliverables. However, as clients don’t understand the process they’re not able to drive it.” That is where BuildingSmart comes in, he asserts, saying that the organisation’s role is to educate the stakeholder and the clients. However, Brinkman and Lock also outline other challenges in rolling BIM out in the Middle East. For example, Murray and Roberts
XXXXXXXX | XXXXXXXXXX TECHNOLOGY | BIM
governments to strengthen its authority. And the organisation is positive that the survey findings to be announced on November 28 will be a crucial step to convincing the government and industry that BIM is the way forward. “The governments are looking to the survey as a guideline to how they should be involved. We need to be able to present the current state of the market with some authority, we can only do that through market analysis,” says Jellings. Among other findings, the survey will reveal current skill levels, factors preventing the adoption of BIM in the region and will hopefully identify the steps needed to “revolutionise” the construction market. In addition, it hopes the results will offer guidance on how to involve academia, government and industry.
XXXXXXXX | XXXXXXXXXX TECHNOLOGY | BIM
FAQs: BuildingSmart ME What is BuildingSmart ME? Launched in 2009, BuildingSmart ME is a not-for-profit organisation that promotes the adoption of ‘Building Smart’ as the standard method for smart, sustainable construction through the lifecycle of a facility. It’s membership covers the Middle East, North Africa and India.
What are its key objectives?
“A company of Arup’s size deals with major clients so it has to stand out. A brand name doesn’t win you projects anymore you have to deliver more”
The Louvre Abu Dhabi construction site on Saadiyat Island. BIM is being utilised in the development of the landmark.
has started to introduce video conferencing so all parties can easily see and comment on the project model. “But the problem is the internet is too slow in this country, so that internet technology needs to catch up,” he says. Brinkman also observes that MEP contractors are slow to take up the technology, while savings can be the most significant if the model is implemented for MEP works. Furthermore, the transparency of the model can drastically shake up the construction process and not necessarily profitably for contractors: “Using BIM, contractors who generally make their money on claims lose their margin so it’s not always good for the main contractor. “But on the other hand, there are too many contractors in the market that instead of grasping BIM and learning to make money in a different way, are not willing to move forward,” explains Brinkman. Meanwhile, Lock says the engineering firm’s role is getting “bigger and bigger” due to the technology and anticipates a shift in responsibilities in the construction process. “We’re spending money to engage with
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contractors and fabricators because in the long run we’re saving money on requests for information (RFIs) for example. “A company of Arup’s size deals with major clients so it has to stand out. A brand name doesn’t win you projects anymore you have to deliver more,” adds Lock. Lock reveals that the group is also working with software provider Tekla to develop a ‘good-practice’ guide to model transferring data that it hopes will soon be published as a white paper, and act as a point of reference for the industry. While several of the construction trailblazer firms are embracing the technology, the takeup is still minimal even in the UK where the construction market is considered significantly more developed that the Middle East’s. However, with the launch of the BuildingSmart survey results next month and a good level of curiousity displayed by governments and industry surrounding this futuristic technology, Jellings hopes the lack of skill, awareness and necessity will soon be addressed; opening the way for the implementation of BIM across the board.
– Surveying the construction sector — how widespread is the understanding and use of BIM? – Raising awareness — of BuildingSmart and in particular BIM – Showing direction — as a neutral body, guiding businesses through the necessary technology and process changes – Involving businesses — success is dependent on the support of key stakeholders: government, academia, owner or developer, and contractors, as well as consultants – Gaining commitment — to enable BuildingSmart to succeed – Providing education — ensuring that training is available to meet skills needs – Developing standards — appropriate to regional needs – Providing a support mechanism for implementation — BIM Support Bureau
Who can be a member? Membership is open to businesses of any size involved in the construction process and to individuals who wish to develop or improve their skills in BIM and interoperability. Corporate members form the governing councils, committees and support groups of BuildingSmart ME.
How to join Membership fees for BuildingSmart ME are broadly based on turnover and type of business, and can be for individuals and corporations alike. For enquiries visit www.bsame.org
Diary dates Find out more about BIM and don’t miss the release of the BuildingSmart survey results at the BuildingSmart 2010 Conference, taking place from November 28-29 at the Crowne Plaza Hotel, Abu Dhabi Yas Island.
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Suppliers in the spotlight A round-up of the latest news and announcements from industry suppliers in the Middle East
Al Qahtani
Aldes Middle East
MAF Dalkia
prepares for KSA expansion German and Chinese products purchased to aid transition into Saudi market
launches diffuser to enhance IEQ New product reduces the by-pass of air velocity using one diffuser
awarded UAE mosques contract Firm wins air-conditioning, plumbing and electro-mechanical maintenance tender
Abdel Hadi Abdullah Al Qahtani & Sons’ Vehicle & Machinery Branch has introduced new products from Germany and China to progress its expansion in Saudi Arabia. The German air-compression systems, manufactured by BOGE, include turbo and craftsman compressors, control systems, oil-injected screw compressors and oil-free piston and screw compressors. According to the company’s managing director Khaled El Shatoury (pictured), they were selected for BOGE’s reputation to produce durable and easy-to-use products. The Chinesemade, material-lifting equipment is manufactured by Zowell and includes manual, electric, and semi-electric units capable of lifting up to 2.5 tons. The units will meet a “growing demand” for supplying warehouse lifting material. Speaking of Al Qahtani’s ambitions, El Shatoury commented: “Our plans for expansion never stop, whether this expansion is in product range, manpower or infrastructure facilities. In the meantime, our plans include opening another branch in a major market in Saudi Arabia.” Details are not yet confirmed but the firm hopes to begin the process quarter one of 2011. In July, he told The Big Project he was confident the huge budget for KSA projects would put developments on track in the country.
An energy-efficient air diffuser designed by Aldes Euro Register reduces maintenance and energy consumption by up to 40%, according to the company. The new model, ‘Combined’, provides the saving by reducing the by-pass of air velocity; using one diffuser for both supply and exhaust. The noiseless diffuser is available in two designs; a four-way square diffuser or a multislot square diffuser. Both can replace a typical 600 x 600 or 675 x 675mm suspended ceiling tile, or can be fixed to concrete tiles. The design also makes installation quicker and easier. “The feedback from consultants at a recent Air Diffusion Seminar was good and they responded well to the design; a perfect comfort with a minimised visual impact on the ceiling. “The new diffuser is a perfect solution for any architects, MEP consultants and MEP contractors,” said Alexandre Benoit, strategic marketing manager for the company.
The Government of Abu Dhabi has awarded a three-year contract to MAF Dalkia for the maintenance of 412 mosques in the emirate. The contract with the government’s facilitiesmanagement division, Musanada, is the first of its kind and will cover air-conditioning, plumbing and electro-mechanical maintenance. “Abu Dhabi is a key growth market for MAF Dalkia and such projects enable us to support members of the community through our services as well as the government,” MAF Dalkia CEO Alexandre Mussallam commented. “We have been able to deploy technicallysound solutions across all activity sectors and develop long-term partnerships with the private and public sectors. This contract is the latest example of our technical capabilities and market understanding providing a sustainable solution for our client.” MAF Dalkia claimed that in 2009 its operations reduced the level of CO2 produced by six million tons. Furthermore, the company has become a founding member of the Middle East Facility Management Association (MEFMA). MAF Dalkia was established in 2002 as a joint-venture between Majid Al Futtaim, Middle East Leader in Shopping Malls, Professional and Financial services and Dalkia Group, European Leader in Energy services.
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Arabplast 2011
25% annual trade show arabplast has increased display space by 25% for its 2011 show taking place on January 8-11, in dubai
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Go distribution
RAK Ceramics
DUBAL
introduces new ‘super’ sealant Sealant system developed to repair and detect leaks
wins innovation award Firm scoops award for RAKSLIM tile at Kingfisher’s Suppliers’ ceremony, Hong Kong
employees’ ‘Green Idea’ recognised Dubai Aluminium Company staff earn ‘Green Idea of the Year’ and ‘Team Idea of the Year’
Go Distribution has introduced Superseal Total to reduce energy costs and carbon consumption in new buildings. Designed to avoid replacement and maintenance work on HVAC systems, the product combines three technologies to prevent and repair refrigeration leaks, repair existing micro leaks and detect larger leaks. “The combination of these three products delivers a four-in-one benefit of eliminating moisture, preventing the formation of acid, sealing micro leaks and helping find larger leaks,” GO Distribution managing director Gary Oborne said. The patented technology can remain active for up to seven years to eliminate moisture and prevent further complications. It has the ability to withstand 750 psi (5170kPa) internal pipe pressure. Left unchecked these pinprick holes can leak refrigerant, push up energy bills and pollute the environment, according to the company, but micro leaks can be hard to find when pipelines are buried in a building’s structure. Any leak too large to seal is marked with UV dye for easy detection. “The products are invaluable . . . as governments crack down on building and atmospheric polluters and moves to curb energy wastage,” concluded Oborne.
RAK Ceremics won an innovation award for its 4.5mm thick tile RAKSLIM at the Kingfisher’s Suppliers’ ceremony, in Hong Kong. The tiles have higher-than-normal breaking and rupture points and can be transported easier due to their size. The award comes only weeks after the company embarked on a strategy to boost brand awareness in Africa. RAK Ceramics showcased a portfolio of ceramic tiles, sanitary ware, paints and watersaving products at the 8th International Building Construction & Water Exhibition in Accra, Ghana. “Our attendance at the exhibition was a strategy to boost brand awareness in the established and developing markets alike. Exhibitions also act as a catalyst to meet potential quality distributors who can do justice to the RAK Ceramics brand by marketing the products into the various untapped African territories,” said deputy CEO Abdalla Massaad. Massaad reported heightened interest in environmentally-friendly products such as the Kludi RAK water-saving system for taps. “RAK Ceramics’ participation at the Ghana Exhibition is part of a strategy to boost brand awareness in the region. We believe that Nigeria has huge potential and we are closely monitoring the market to expand our presence in the region,” added Massaad (RAK team pictured).
Employees at Dubai Aluminium Company (DUBAL) won the titles of ‘Green Idea of the Year’ and ‘Team Idea of the Year’ at the 68th USA Employee Involvement Association (EIA) competition, held last month. The Green Idea of the Year suggestion was submitted by two mechanical technicians and a maintenance technician. The technicians suggested modifying welded fume ducts with a flange to allow easier maintenance and eliminate hazardous emissions. The second category ‘Team Idea of the Year’ competition involved fabricating an efficient multiple-use table pre-heater. Three technicians proposed an in-house designed pre-heater for multiple billet casting tables to reduce gas consumption, minimise transportation and reduce pre-heating time by 60%. “The DUBAL Suggestion Scheme was introduced in 1981 to engage and empower employees to put forward their ideas for improving the business. This international acknowledgement could not have been possible without the technical expertise and the commitment of our employees. The success of the scheme is due to our talented employees,” said DUBAL president and CEO Abdulla Kalban (pictured above). The submissions beat competition from Lockheed Martin Aeronautics, Honda America, the US Army and Commercial Bank.
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XXXXXXXXHOTSEAT SUPPLIER | XXXXXXXXXX | TAMARA
Cool Operations
Elite Tower in Dubai Marina.
Tamara Trading International has developed from a one-man operation to the sole supplier for a number of cooling towers, ice plants and batching concrete plants in the Middle East
O
perating in Buffalo, New York, since 1983, Tamara Trading International (TTI) opened its first branch in Dubai in 1986 to take advantage of the emerging market in the Middle East. “We came to Dubai because there were more business opportunities; new towers and shopping centres were being built and they all required HVAC systems,” explains managing director Jaffar Al Issa. After studying at the engineering and business administration at the State University of New York in Buffalo, Al Issa grew the company from a small operation to an international business supplying HVAC systems for largescale projects throughout the Middle East and Africa. “We started out with one person and now we employ a staff of 33 specialised personnel in various departments. Our engineers, technicians and workers can execute any type of HVAC project,” he adds. Building the business on strong working relationships, TTI has been the established sole agent for manufacturers from Malaysia, China and Turkey for the last 20 years. Its product catalogue includes systems such as closed cooling towers, the Grant fully-automatic Ice System and since June 2010, the JCI Certified & JIS B8609 Standard Nihon spindle cooling towers. In addition to these, TTI also supplies batching concrete plants “We select our manufacturers based on their reputations, the quality of their products and whether the products have certification, like the Nihon towers. We also offer aftersales support with new manufacturers.” TTI’s client list is equally extensive, with Al Issa naming the Elite Tower and Marina Hotel and residential towers in Dubai, and Sharjah International Airport as “our biggest and most unique projects.” “We used Nihon spindle cooling towers and the designs are specially adapted according to
the tower building. The capacity for the Elite Tower is 3400 tons, for the Marina Towers 3200 tons and 5000 tons for the airport development. Previous projects have included a number of industrial buildings, including Emirates Glass Factory and Gulf Ice Factory, as well as the Dubai Carlton Tower Hotel and Ras Al Khaimah’s Hilton hotel. This year TTI added two new products to its catalogue; a containerised block ice machine and a flake ice machine. Using new technology, the block ice machine evaporates the refrigerant inside an
Dubai’s Marina Crown Tower.
aluminium-plated ice can to speed up cooling. The flake ice machine features a micro-computer control system with a touch screen which displays running processes and failure details to enhance ease of use. The new products have also helped raise TTI’s profile in new markets. Three flake ice machines have been shipped to Saudi Arabia to date and Al Issa reports strong sales for the block ice machines across the GCC countries. Despite the majority of companies delaying upgrades and extensions, contracts still exist and it is these sales that have helped maintain robust trade over the last 12 months. As the industry recovers and projects resume, the coming year is predicted to be equally strong with new deals being signed in Saudi Arabia, Qatar, Kuwait and Iraq. ● Jaffar al Issa.
TTI is the Middle East distributor for:
Nihon spindle cooling towers, CTI, JCI Certificates, JIS B8609 Standards, manufactured by Nihon spindle SDN BHD, Malaysia Closed Type Cooling Towers Evaporative Condensers, manufactured by Wuxi Well Cooling Equipment Co. Ltd Grant ice systems: fully-automated containerised flake ice system, ice storage, weighing device, delivery system, automatic control room Containerised block ice plants
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XXXXXXXX CAREER LADDER | XXXXXXXXXX | ROGER NICKELLS
Happold happenings Buro Happold’s new regional director Roger Nickells tells The Big Project how he plans to spearhead the firm’s growth in the Middle East construction market
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ast month, Roger Nickells joined consulting engineering firm Buro Happold as Middle East regional director from his former role as Dubai office director at Atkins. Nickells brings to the role experience of a wide variety of high-profile projects in the Middle East, including Dubai’s Jumeirah Beach Hotel and Wild Wadi Water Park, and ShangriLa’s Barr Al Jissah Resort and Spa in Muscat. “I want to help the team build on the firm’s deep knowledge and experience of the Middle East market and its reputation for delivering outstanding consultancy advice and integrated project design and management while growing its geographical and sector reach,” he said. The appointment forms part of the firm’s agenda to deliver existing projects and pursue new markets in the region, which has also seen Robert Okpala named as Buro Happold’s new regional discipline leader for Building Environment and Martin Tillman join to lead its transportation team. Meanwhile, a new country director for Saudi Arabia, Oliver Plunkett, has been brought onboard and former country director Phil Dalglish has been promoted to business development director. “The practice has a lot of work in the region and has since it was established. As the projects get bigger it makes sense to strengthen the team to give the best service and also to position the company to be able to take advantage of the market,” Nickells explained to The Big Project, he added that the business is “selectively hiring” staff to strengthen the management and the whole team.
Manpower
“These appointments are a clear sign of our commitment to international clients, as well as the Middle East market, where we have been active since the practice was founded in 1976,” Steve Brown, managing director for the Middle East, Asia Pacific and Africa zone said in a recent statement.
Buro Happold’s Riyadh-based chairman and a founding partner Rod Macdonald added: “Roger and the new senior management team will drive our ambitious growth plans for the Middle East business.” “The new team will provide a strong platform for the future growth of the practice in the region, as we plan to grow our network of offices and increase the size, reach and expertise of our established teams in response to growing client demand.”
Growth areas
Speaking of Buro Happold’s Saudi Arabia projects, Nickells commented that the group’s portfolio was “very strong there”, naming the King Abdullah Financial District as one of its key developments. “Operating in Riyadh poses challenges because of the speed of construction, the complexity of the projects and in terms of supporting our staff on the ground there, but the business has been there for a long time so we’ve got used to it,” he said. Nickells has also identified Qatar as a market for expansion: “We have many new projects in Qatar, we’re building our portfolio of work there”. However, he added that 2011 expansion targets were still being worked on and he was looking at a variety of ways to “take the business forward”. “The main objective currently is helping teams deliver the ongoing projects, including Abu Dhabi Media Zone, and helping the company grow into other areas,” said Nickells, adding that the Middle East was a key market in Buro Happold’s long-term international agenda. “We will continue being involved in exhibitions in the region; watching, learning and engaging in conversations on moving the construction industry forward. We’re particularly interested in modular construction and sustainability.” ●
“The business is selectively hiring staff to strengthen the management and the whole team”
TOP: Nickells joined Buro Happold last month from Atkins. ABOVE: Nickells identified Qatar, which is developing its new National Convention Centre (pictured) among other projects, as a key market for the company.
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TENDERS
The latest tenders and project updates for developments in MENA
LEBANON
LIBYA
Project name Sky Gate Tower Project
Project name Sama Beirut Tower Project
Project number ZPR157-LE Territory Lebanon Client MENA Capital (Lebanon) Beirut Email: info@menacapital.com.lb Web: http://www.menacapital. com.lb
Project number MPP2396-LE Territory Lebanon Client Antonios Projects (Lebanon) City: Beirut 20628306 Email : info@sama-beirut.com Web: http://www.primeconsult.net
Description Construction of Sky Gate residential tower comprising 40 floors and five basements, surrounded by 3500m² of gardens and landscaped areas, a number of swimming pools, a health club and a fitness centre.
Description Construction of 50-storey, 200m high Sama Beirut Tower comprising seven floors of offices and 40 residential floors, which will contain 71 apartments, including seven basements dedicated to parking facilities for more than 700 cars.
Budget $100 million Budget $125 million Period 2013 Status New tender Remarks The tower will be located at the highest point in Ashrafieh, between Georges Haimari Street to the south and Ashrafieh Street to the north in Lebanon. When complete, the building will contain up to 40 residential floors offering a range of apartment sizes. It is understood that piling and excavation works have recently been completed, while the main construction contract is expected to be awarded in December 2010. Construction work is anticipated to commence in January 2011. Local Pierre Dammous & Partners has been appointed as acting as the electromechanical engineer currently. Main architect Nabil Gholam Architecture & Planning (Lebanon) Specialist consultant Pierre Dammous & Partners (Lebanon) Foundations, enabling & piling contractor International Piling Group (based in Lebanon)
Period 2014 Status New tender Remarks This project will be located in the Sodeco area of Beirut, near to the airport and downtown Beirut and is set to become the tallest tower. The building will be LEED certified. The tower will also contain a 1000m² private health club and swimming pool. It is understood that excavation and shoring works are ongoing and will be completed in the second quarter of 2011. Evaluation of bids is currently underway for the main construction contract. Construction work is expected to commence by end of November and is expected to be completed in 2014. Main architect Elie Saab (Lebanon) Main architect -1 Erga Group Architects & Consulting Engineers.
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Project name Tripoli Airport Terminal Development Project Project number MPP2095-LI Territory Libya Client Civil Aviation Authority (Libya) City: Tripoli Website: http://www.lycaa.org Description Design and construction of two terminal buildings at Tripoli Airport with capacity to handle 20,000,000 passengers per year, including (48) lifts, (26) elevators, (160) check-in counters, (12) baggage handling carrousels, (32) fixed and (64) mobile passenger boarding bridges.
Budget $2,000,000,000 Period 15/03/2011 Status Current Project Remarks This project is at Tripoli in Libya. Each terminal will cover an area of approximately 175,000m². A joint venture of Turkey’s TAV, Brazil’s Odebrecht and Athensbased Consolidated Contractors International Company has been selected to construct two passenger terminals at this airport. France’s Vinci, Germany’s Strabag and Japan’s Taisei Corporation are understood to have been selected to carry out other parts of the project, including a cargo terminal, VIP area, runways, roads and parking areas. The first terminal has been completed, while the second terminal is expected to be completed in first quarter of 2011. France’s Aeroport de Paris is
the design consultant, as well as the project manager and supervisor. Design consultant Aeroports de Paris - AdP (France) Project manager Aeroports de Paris AdP (France) Main contractor TAV Construction (Turkey) Main contractor -1 Odebrecht S.A (Brazil) Main contractor -2 Vinci (France) Main contractor - 3 Consolidated Contractors International Company
Project name Al-Waha Mixed-use Development Project Project number MPP2351-LI Territory Libya Client Name: Al Maabar International Investments (based in Abu Dhabi) City: Abu Dhabi Description Development of AlWaha mixed-use scheme comprising residential, commercial and hospitality towers, a hotel, serviced apartments, a shopping mall, supermarkets, a cinema, including a health club.
Budget $750 million Period 15/12/2012 Status New tender Remarks Two 28-storey towers; a commercial tower and a hospitality tower, with a 203-room hotel and 102 serviced apartments. Design consultant Atkins International (UK) Project manager RW Armstrong
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XXXXXXXX MENA PROJECTS | XXXXXXXXXX | TENDERS
SAUDI ARABIA
QATAR
Project name Kingdom City Development Project
Project name Burj Rafal Mixed-use Project
Project number MPP2093-SA Territory Saudi Arabia Client Kingdom Holding Company (Saudi Arabia) City: Riyadh 11321 Email: info@kingdom.net Web: http://www.kingdom.net
Project number MPP2361-SA Territory Saudi Arabia Client Name: Rafal Real Estate Development Company Ltd. (Saudi Arabia) City: Riyadh 11547 Email: info@rafal.com.sa Web: http://www.rafal.com.sa
Description Development of Kingdom City comprising a 1000-metre-high skyscraper, residential and commercial buildings, hotels, including leisure facilities.
Budget $25 billion Period 15/09/2017 Status New Tender Remarks This project will cover an area of 5.3 million m² by the Red Sea in northern Jeddah. The residential area will cover 1.5 million m² of land, the commercial area will cover 470,000m² of land, the education vicinity will cover 150,000m² and offices area will cover 800,000m² of land, while 2.38 million m² of land will be for leisure and tourism facilities, and hotels. The scheme will stretch from Red Sea coast of north Jeddah to Sharm Obhur. US-based HOK has been appointed to prepare the land sites plan. Design work is still in progress. US’ Bechtel has been appointed as supervisor for this entire development. US-based Pickard Chilton has submitted a master plan of this scheme to the Client. Main consultant HOK Canada Inc. Main architect Pickard Chilton Architects (USA) Project manager Bechtel (based in Saudi Arabia)
Description Development of Burj Rafal mixed-use scheme comprising a 62-storey tower consisting of 260 luxury apartments on 23 floors; a 2000-person-capacity ballroom and 24 meeting rooms on one floor; a 297-room Kempinski Hotel and 54 serviced apartments over 17 floors; office space, which will occupy 13 floors; two wellness spas on one floor; and 4000m² of retail space on the building’s podium.
Budget $800 million Period 2012 Status Current project Remarks This project will be developed on a site of 22,000m² in the northern Assahafa district of Riyadh. UAE-based Dubai Contracting Company (DCC) has been awarded the main contract to carry out this scheme. Hong Kong’s P&T Architects & Engineers designed the project and is serving as its mechanical, electrical and plumbing (MEP) consultant and structural engineer. Main consultant Rider Levett Bucknall Consultants (based in Saudi Arabia)
MEP consultant Palmer & Turner Architects & Engineers Limited (Hong Kong) Design consultant Palmer & Turner Architects & Engineers Limited (Hong Kong) Project manager International Projects Management (Dubai) Wind surveyor Windtech (Dubai) Main contractor Dubai Contracting Company L.L.C. (Dubai)
Project name Headquarters Building Project - King Abdullah Financial District Project number MPP2297-SA Territory Saudi Arabia Client Name: Samba Financial Group (Saudi Arabia) City: Riyadh Web: http://www.samba.com Description Construction of headquarters building comprising a 39-storey office block with three levels of basement parking at King Abdullah Financial District.
Budget $240,000,000 Status Current project Remarks This project will be located on the outskirts of Riyadh. Main consultant Davis Langdon Arabian Gulf (Bahrain) Main architect Foster & Partners (UK) Engineering consultant Buro Happold (UK) Main contractor El Seif Engineering Contracting Establishment
Project name Passenger Terminal Extension Project - New Doha International Airport Project number MPP2316-Q Territory Qatar Client New Doha International Airport Steering Committee (Qatar) City: Doha Email: info@caa.gov.qa Web: http://www.ndiaproject.com Description Carrying out an extension to the existing passenger terminal located at New Doha International Airport.
Budget $690 million Period 10/11/2012 Status Current project Remarks Known as the north node, it will involve construction of a fivelevel structure with a total floor area of 127,000m². The ground floor will accommodate transit passengers, the first floor is for departures, while the second floor for arrivals. The third and fourth levels will house a 100-room hotel. The extension will connect to the main passenger terminal. A joint venture of Belgium’s Six Construct and local Midmac Contracting Company has been awarded the main contract to carry out this scheme. Main contractor Six Construct Ltd. (Qatar) Main contractor -1 Midmac Contracting Company (Qatar)
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XXXXXXXX MENA PROJECTS | XXXXXXXXXX | TENDERS
UAE
Project name Blu Mirage Mixed-use Development Project - Al Marjan Island Project number ZPR093-U Territory Northern Emirates Client Pure Real Estate (Dubai) City: Dubai Description Development of Blu Mirage mixed-use scheme comprising two residential towers, 2 serviced apartment towers and 2 hotels.
Budget $300,000,000 Period 2011 Status Current project Remarks This project will be developed at Al Marjan Island in Ras Al Khaimah and cover an area of 135,000 square metres. Local Al Hamra Construction Company has been appointed as the main contractor for this project. The project is expected to be completed in fourth quarter of 2011 or first quarter of 2012. Hong Kong’s Ho & Partners is acting as the architect. Main architect Ho & Partners Architects Engineers & Development Consultants (Hong Kong) Main contractor Al Hamra Construction Company (Ras Al Khaimah) Foundations, enabling & piling contractor RAK Piling (based in Ras Al Khaimah)
Project name Gateway Towers Project- Al-Reem Island Development Project number SPR1723-U Territory Abu Dhabi Client Sorouh Real Estate (Abu Dhabi) City: Abu Dhabi Web: http://www.sorouh.com Description Design and construction of Gateway Towers comprising (6 Nos.) mixed-use buildings, including a range of other associated facilities.
Budget $1.6 billion Period 30/12/2012 Status Current project Remarks This project will be located at Shams Abu Dhabi development in Al-Reem Island and will cover a total built-up area of 1.1 million square metres. Abu Dhabi-based Arabian Construction Company (ACC) has been appointed as the main contractor. US’ Hill International Inc. has been appointed as the project manager on this scheme. Main consultant Khatib & Alami Consulting Engineers (Abu Dhabi) Project manager Hill International Ltd. (Abu Dhabi) Main contractor Arabian Construction Company - ACC (based in Abu Dhabi) Foundations, enabling & piling contractor Arabian Sea Foundation (based in Egypt)
Project name Bab Oil Field Expansion Project Phase 1 Project number SPR2616-U Territory Abu Dhabi Client Abu Dhabi Company for Onshore Oil Operations (ADCO) City: Abu Dhabi Email: ajabri@adco.co.ae, info@ adnoc.com Web: http://www.adco.co.ae Description Engineering, procurement and construction (EPC) contract for expansion of the existing Bab oil field to produce an additional 425,000 barrels per day (bpd) that will add 80,000 bpd to the current capacity of around 320,000 bpd.
Budget $683,000,000 Period 15/08/2012 Status Current Project Remarks This project is in Abu Dhabi. It aims at increasing the production capacity at the field through development of Habshan
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2 and Thamama G production reservoir. Scope of work involves the installation of 54 injection wells and around 950km of pipelines. Local National Petroleum Construction Company (NPCC) has been appointed as the EPC contractor. Work will take 30 months to complete. Switzerland-based Global Engineering & Construction Group, a subsidiary of US-based engineering and construction giant Foster Wheeler, has been awarded the project management consultancy (PMC) contract on this scheme. Value of the contract has not been disclosed. The company’s primary role as PMC will be to manage the EPC tendering and awarding process as well as the EPC execution phase on behalf of the Client. US’ Washington Group International has been appointed as the consultant. Main Consultant Washington Group International (USA) Project manager Global Engineering & Construction Group (Switzerland) Main contractor National Petroleum Construction Company - NPCC (based in Abu Dhabi)
Project name Jumeirah Gardens Mixed-use Development Project Project number SPR2243-U Territory Dubai Client Meraas Development (Dubai) City: Dubai Web: http://www.meraas.ae Description Development of Jumeirah Gardens mixed-use scheme comprising seven distinct areas, including offices, residential buildings, retail, leisure and entertainment areas, and hotels.
Budget $95 billion Period 25/12/2013 Status New tender Remarks This project will be located in old Satwa area, west of Sheikh Zayed Road between Al Diyafah
Street and Safa Park in Dubai. It will cover an area of approximately 110 million square feet and also include a canal running through the heart of the development. Construction works on Phase 1 have already commenced. US’ Skidmore, Owings & Merrill has been appointed as the consultant. Dubai-based CH2M Hill is acting as the project manager. It is understood that reclamation works of the island is in progress. Main consultant Skidmore, Owings & Merrill LLP (USA) Design consultant Nikken Sekkei Ltd. (Japan) Project manager CH2M Hill International Ltd. (Dubai)
Project name RAK Convention & Exhibition Centre Project RAK Gateway City Development Project number MPP1750-U Territory Northern Emirates Client Rakeen Development PJSC (Ras Al Khaimah) City: Ras Al Khaimah Email : info@rakeen.com Web: http://www.rakeen.com Description Design and construction of Ras Al-Khaimah Convention & Exhibition Centre.
Budget $400 million Period 2013 Status New tender Remarks This project will be located at the Gateway City development in Ras Al Khaimah. The centre, named as Death Star, will comprise a spherical glass and steel nest and a very long, low building raised off the ground. The project is still under design. This is expected to be completed in the third quarter of 2011. Tendering for the main construction contract is expected to commence in second half of 2011. Main architect Office for Metropolitan Architecture OMA (Netherlands) Project manager Davis Langdon Arabian Gulf (Dubai) Main architect -1 Snohetta AS (Norway)
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XXXXXXXX DAIRY | INDUSTRY | XXXXXXXXXX EVENTS
NOVEMBER
DIARY MENA
Saudi International Building & Construction Exhibition Saudi Arabia: November 6-10 BUILDEX 2010 brings you an opportunity to introduce your company to KSA’s rapidlygrowing building and construction market.
Building & Construction Exhibition Kuwait: November 7-13
Exhibitors can meet visitors from Kuwait and abroad at the country’s Building & Construction Exhibition, especially officials and businessmen from Iraq.
Stone Gate Egypt Egypt: November 9-12
Stone Gate Egypt is an international exhibition for the natural stone industry.
International Real Estate and Investment Show (IREIS) Abu Dhabi: November 17-20 IREIS 2010 is the 6 edition of the show, which is targeted at the final consumer. th
The Big 5 Dubai: November 22-25
The Big 5 Show 2010 is a trade fair organised for the construction industry in the gulf region and features five different exhibitions at a single venue.
Roadex Railex Abu Dhabi: November 28-30
Dedicated to roads, tunnels, bridges, traffic and parking, ROADEX will address key issues relating to the region’s national networks.
Stadium Venue Design and Development MENA Qatar: November 28-December 1
Stadium and Venue Design and Development MENA is dedicated to the design and development of world-class stadiums in the Middle East. The conference will highlight the key solutions to the latest challenges in the Middle East’s stadia industry, including sustainability, adapting to the climate and operational best practice.
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International China International Aluminium Industry Exhibition Beijing: November 8-10 China (Beijing) International Aluminium Industry Exhibition is an opportunity to disseminate your company, generate business leads and introduce or be introduced to new products, equipment, services and technological innovations.
Kenya Building & Construction Kenya: November 9-12
The Kenya building industry benefits from the economic growth and the inflow of foreign capital, and is regarded as a promising market. It is growing rapidly and numerous projects in the field of road construction, housing projects and the construction of office premises are planned.
Greater Philadelphia Building & Facility Maintenance Show US: November 10-11
Hosted by Maintenance Shows of America, the Greater Philadelphia Building & Facility Maintenance Show will exhibit elevators, construction tools and machinery, floor coverings, ceramics and tiles, doors and services among other products within its two-day duration.
Bauma China 2010 Shanghai: November 23-26
Organised by Messe Munchen GmbH, Bauma China is a fair for construction machinery, building material machines, construction vehicles and equipment. Held at Shanghai New International Expo Centre, the event is directed towards attracting architects, builders, surveyors, plumbers and others.
Affordable Housing Development Summit India: November 29-30
Owing to the global economic downturn, there has been a trend shift with developers now investing in affordable housing projects for low- and middle-income groups making ‘affordable housing construction’ the largest and fastest growing segment in India’s construction Industry. By the end of 2010, it will have a shortage of 25 million homes.
Global trends
$150
billion
The approximate value of the publicsector construction programme in Saudi Arabia
$6
billion
The value of upcoming residential developments in the Kingdom of Saudi Arabia
120 The number of countries that participated in last year’s The Big Five show in Dubai
25
million
The shortage of affordable homes in India, forcing government to focus on low-cost residential projects
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XXXXXXXX | XXXXXXXXXX LEFT TO RIGHT: ASGC chief executive officer Bishoy Azmy and vice president Abdul Aziz bin Al Shafar with The Big Project editor Louise Birchall and CPI publisher Dominic De Sousa.
ASGC crowned Contractor of the Year 2010 Strong reader nominations for the Contractor of the Year Award 2010 left The Big Project team with a tough decision to make, but after much deliberation Al Shafar General Contracting scooped the title
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T
he past 12 months have certainly been tough for the region’s contractors, with competition at an all-time high and hundreds of firms bidding for each project, only the best have survived. The Big Project’s Contractor of the Year Award was introduced to recognise those firms that are surviving and thriving and give them a chance to share their success stories and secrets — from best practice and environmental considerations, to health and safety, and building quality. Having received a number of strong nominations from contractors across the region, The Big Project team faced the difficult task of choosing just one winner. Companies we’re judged mainly on their pro-activity, perseverance and ability to win contracts in a difficult market while maintaining best practice in all areas of operation. After much deliberation the award went to Al Shafar General Contracting (ASGC). One of the key driving forces behind the UAE building industry, ASGC has delivered some of the region’s most iconic landmarks over the past 20 years. Established in 1989, the company was a major influence on the Dubai cityscape with a diverse portfolio including commercial and residential towers, government buildings, educational facilities, factories and healthcare projects. It has maintained its leading market position
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XXXXXXXX AWARDS | ASGC | XXXXXXXXXX
through careful planning, development, sound client and consultant relationships and by demonstrating best practice. Recognising its social responsibility, ASGC enforces the highest of operational standards through its OHSAS 18001 health and safety accreditation and BS EN ISO 14001 environmental certification. “Effective communication is an integral part of our site-control process. “By ensuring safe systems of work are communicated to all staff, we have reduced our accident safety rates to some of the lowest in the industry,” said CEO Bishoy Azmy. “There are a number of methods by which we communicate health, safety and environmental matters within the company, which include various site-based talks and reporting processes, meetings, audits, internal information sheets and, of course, training. “Training is a vital part of the communication process and at ASGC we have a comprehensive training programme that is designed to pass health, safety and environment information onto management and the workforce.” The company has also taken a sustainable approach to its projects and is demonstrating those values in the launch of its new headquarters building, which is currently seeking LEED Gold certification.
Today, the Al Shafar group of companies employs 10,000 people across the Gulf and has become the preferred partner in the region to deliver complete contracting services. It has 16 sister companies that provide specialised contracting services, and manufacture various construction materials. “Not only does this give ASGC more control over the project, but it gives us a unique advantage within the building industry,” said Azmy. While the UAE market today is very different to the fast-expanding market which enabled the group’s growth, ASGC has demonstrated its pro-activity in continuing its ongoing projects in the emirates, as well as embarking on an expansion plan which has identified opportunities for growth in the GCC. The company has been active in developing projects in Qatar, Egypt, Saudi Arabia, Oman, Kuwait, Syria and Libya. “In addition to this, we are looking into opportunities in the Commonwealth of Independent States (CIS) and other Asian countries. This geographical expansion will provide ASGC with access to a new customer base and the opportunity to leverage its skill set outside the UAE,” he asserted. Furthermore, the group recently launched ASGC Al Shafar Oilfield Contracting based in Abu Dhabi to focus on providing building
services in the on-shore and off-shore oil and gas field sectors. “Through continual market exploration, we are rewarded with complex and challenging new projects which increase our established track record of achievement.” Following a successful 2010, which has seen the group win a number of large-scale projects in the region, ASGC remains positive for an even better New Year. “The construction sector, among other industries, was affected by the global financial crisis. By effectively managing our company resources and applying a number of risk-response options, we successfully overcame this critical period. “We predict the recovery in the market will continue at an even faster pace in 2011, as the need for experienced service providers increases,” Azmy revealed. Upon receiving the Contractor of the Year Award 2010, ASGC vice president Abdul Aziz bin Al Shafar said: “ASGC is honoured to receive this title. The company has won several industry awards over the years recognising our achievements in the region’s construction industry. He continued: “Such recognition will drive us to take on bigger and better projects in Dubai and the wider Middle East, while maintaining our core values which have enabled us to get to where we are today.” ●
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XXXXXXXX TEA BREAK | INDUSTRY XXXXXXXXXX COMMENT
“We’re the only project-management company represented here, it’s important to have a presence, otherwise people wonder where you are. We’ve already had an interested visitor from Saudi Arabia so we’re hopeful that enquiry will have a positive outcome.” EXHIBITOR Ammar Al-Hajjar, consultant, Davis Langdon
VISITOR
George Abdelmalik
Electronics engineer, KONE, based in Dubai Our company manufactures elevators, lifts and ramps so we’re here to identify potential projects we can supply. The show has been acceptable. Some of the projects which were on hold have started to be revived now. I think the market is prosperous. There are a lot fewer exhibitors this year, but it has been interesting to see exhibitors here from other regions as we have offices all over the world. VISITOR
Harpreet Seth
Your Shout After a disappointingly-quiet Cityscape Dubai last year, The Big Project asked visitors and exhibitors whether the 2010 event — rebranded as Cityscape Global - was worth a day or two out of the office VISITOR
VISITOR
EXHIBITOR
Managing director, All Blacks, based in Dubai We offer interior design services for the high-end sector and have worked with many of the large companies in the region, including Emaar Properties. Cityscape is becoming smaller in size, but better in quality. It’s been very quiet compared to when we visited in 2008, but back then you didn’t know whether all the visitors attending were serious or just browsing. A lot of people just came to have a look at the projects and pick up the free goodie bags on offer. We still have a keen interest in the ongoing Dubai projects, but we’ve also been looking at a lot starting in Abu Dhabi.
Abu Dhabi branch director, Oger International, based in Abu Dhabi I’m from a consultancy that has offices in Dubai and Abu Dhabi and we’re still hopeful that there will be a number of upcoming project opportunities in Dubai. So far the exhibition has been encouraging. We have seen developers that were here in previous years return in 2010, and it is not only the big developers returning. Many people here are looking past the financial downturn and looking at how to drum up enough finance to really kickstart their projects for a positive New Year.
SVP — corporate communications, Damac Cityscape is a forum where we can communicate with our customers, including contractors, consultants, developers and others in the industry, about our progress. We have awarded as many as 20 projects in the last five months, totalling US $1 billion. In the next seven months we will deliver seven towers; 4000 units. We have delivered 3500 units to date. There has been an extremely positive response here today. We have put a very intensive communication programme in place over the last two years; Damac has never shied away from publicity like some of our peers may have done.
Roger Zehil
Gerard Couturier
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Niall McLaughlin
Lecturer — engineering, Ajman University of Science & Technology, based in Ajman I’m an architect and teach architecture students in Ajman. I’m researching iconic architecture in Dubai and what impact it has on people so I’ve been coming to Cityscape since it started, to keep in the projects loop. It’s interesting to see what effect the economic downturn has had on the real estate developments. It seems like there are new projects and the old ones are still going ahead, but the entire mood has changed. Many designers and developers are re-evaluating the scope of projects and buyers are looking for more value for money. We expect to see iconic buildings upcoming in the future, but built at a much slower rate than in past years. We already have a jungle of iconic structures so ‘iconic’ status won’t be as significant on future projects. Most of my students are from the gulf region and intend to go onto work in the region. Despite being exposed to the region’s modern architecture, many students want to go back to their roots; to traditional architecture, which has a big impact on culture.
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