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JUNE 2012

Intermat paris Qatar tender report exclusive: FAMCO financial THE TOP 5 MOST EXPENSIVE NEW INFRASTRUCTURE PROJECTS IN THE GCC

infrastructure ABC From the regionâ&#x20AC;&#x2122;s most expensive new projects, to the financial models and machines required to build them, The Big Project looks at all things infrastructure

JUNE

Contents REGULARS

Editor’s letter 6

16 News analysis

News bulletin 9

The story behind the statistics that predict Qatar could be heading for economic trouble

In profile 20

FAMCO managing director Paul Floyd on the dealer’s new in house financial services

Career ladder 29 Victaulic’s new product development manager on meeting regional objectives

FEATURES

Roundtable: INTERMAT special 46 The Big Project roundtable at INTERMAT Paris, with organisers, exhibitors, and Abu Dhabi Department of Economic Development

Supplier news 56 Tenders 65 Diary 70

24 Business brief Doosan on its top three dealer ambition and the benefits of trade ties with Korea

33 Cover story: Financing Arabia’s future The region’s top projects by cost; expert advice on budget management; and financing models

43 PMV focus Kanoo general manager Bob Jennings on the downside of up turns

59 Supplier profile Manazil Steel Framing on EcoMag and what it means for new construction methods

62 Special feature: Lighting Shining a light on health and safety with Jersey Group’s Irish start-up, Lightstep

www.thebigprojectme.com | 3

You’re smart

You’re in the highly competitive construction industry. You are tendering while still overseeing existing construction projects, not getting information from all your sites on time. Accounts are battling to give you up to date reports. It’s seat of the pants stuff, and all the time... you are signing cheques.

AD BuildSmart is NOT a rejigged commercial accounting package — its SOLE PURPOSE is construction enterprise accounting. BuildSmart shares information with Candy Estimating and Planning, producing a living budget that becomes a powerful project re-planning, forecasting and management tool throughout the life-cycle of the project. BuildSmart can be deployed quickly and with a minimum of customisation. BuildSmart uses MicroSoft.Net/SQL technology.

Timely and informed management interventions lead to improved margins and a competitive advantage. CCS presents BuildSmart, a customised construction accounting enterprise solution. Now you can: • get REAL—TIME financial control when you want it, where you want it. • compare your REAL COSTS against your BUDGETED COSTS. • make informed decisions when a situation arises and intervene immediately. • have FULL INTEGRATION of Costing, Procurement, Payroll, Project Management, Project Accounting and Enterprise Accounting.

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Candy Estimating and Project Control software is used by hundreds of satisfied contractors in over 50 countries around the world. We build our international strengths while we build YOUR strength. We listened to your requests, as industry requirements changed. We built new software modules as you built dams, roads, bridges and towers. As you formed public/private partnerships, we integrated software that opens communication and cooperation with your colleagues... allowing all divisions and departments of your company to work seamlessly towards the same goal... giving you real control over your costs, streamlining your processes, improving your efficiency, enhancing your productivity and filling your order-books. ESTIMATING: Pricing libraries, Take-off, Indirect costs, Free-format worksheets. Sub-contractor enquiry, comparison and award, Alternative Tendering, Mark-up, Production, manhour and wastage allowances and analysis, Reporting, Integrate the Estimate with the Program, Immediate forecast cash flow, Tender Finalisation

VALUATIONS: Job Modelling, Sub-contract control and payment, Monthly valuations, Analytical variations pricing, Allowable vs Cost reconciliation, Engineering information, Cost to complete by cost rate resources and cost worksheets, External Cost import for cost vs allowable reconciliation and cost at completion FORECASTING: Integrate the Bill of Quantities with the Program, Forecast the bill and resources, Summarise into Project Codes ( With, What & Where), Forecast summary cost codes ( When), Base forecast, Monthly allowable, Collect costs, Forecast allowable and costs PLANNING: Critical path planning, Resourcing, Organising, Progress, Information schedules, Integrate schedule with the Estimate, Time/ location CASH FLOW: Payments, Receipts, Nett Present Value, Currencies and exchange rates, Integration with the Bill and Program

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EDITOR’S COMMENT

Publisher Dominic De Sousa Chief operations officer Nadeem Hood Associate publisher Liam Williams liam@cpidubai.com TEL: +971 (0)4 440 9158 GSM: +971 (0)55 310 9256 Editorial director Melanie Mingas melanie@cpidubai.com TEL: +971 (0)4 440 9117 GSM: +971 (0)56 758 7834 Reporters Anoop Menon anoop@cpi-industry.com Praseeda Nair Praseeda@cpidubai.com

“Time to listen” I

n times of austerity and recession, the most common and accepted reaction is to cut back: trim budgets, shrink departments, prepare for losses. Not here. As the Eurozone crisis lurches from ‘disastrous’ to ‘worldwide threat’ status, in the Middle East it’s business as usual. Talk of billion dollar profits and regional expansions roll of the tongues of C-suite executives, and record breaking infrastructure projects in the GCC have created their own $500 billion economy. With three years spent dissecting and analysing the crash of 2008, talk is now turning to the future. Having weathered – and found opportunity in – worldwide recession, private and public sector entities say they are now positioned to seize the opportunity economic stability will bring. In their preparation, these businesses are turning attention away from core business models and core geographical markets. In this issue, FAMCO managing director Paul Floyd explains the idea behind the company’s new finance facility and Doosan’s Gaby Rhayem

Online editor Gavin Davids Gavin@cpidubai.com +971 (0)4 4409118

shares the dealer’s ambition to become top three by 2015. This issue also carries a run-down of the five most expensive new infrastructure projects in the region, with a full top 20 list of the most expensive active projects on www. thebigprojectme.com. But not all news is good news. This month has also seen the publication of a tender price index predicting Qatar’s World Cup projects could bring about a crisis that will see a return to the days of supply/demand imbalances and spiralling material prices. By the same token, domestic solvency isn’t always such a great thing either. With seemingly infinite budgets and relatively secure income streams across the GCC, experts say many governments are failing to utilise alternative financial models; locking out private sector money and expertise, and racking up huge bills on projects that are rarely audited for feasibility. There is no doubt that market sentiment is growing in strength but worldwide, those markets are still fragile and the overriding message seems to be that we must walk before we can run.

Melanie Mingas Editor

Business development manager Junaid Rafique junaid@cpidubai.com TEL: +971 (0)4 440 9150 GSM: +971 (0)50 104 7864 Business development manager Rhiannon Downie rhiannon@cpidubai.com TEL: +971 (0)4 440 9152 GSM: +971 (0)50 554 0116 Marketing Manager Carole McCarthy carolem@cpidubai.com TEL: +971 (0)4 440 9157 GSM: +971 (0)55 978 8605 Team Administrator Leila El Madalla leila@cpidubai.com GSM: +971 (0)50 912 7459 Designer/Photographer Marlou Delaben Photographer Cris Mejorada Webmasters Troy Maagma Jerus King Bation Erik Briones Joel Azcuna Printed by Printwell Printing Press LLC Published by

Head Office PO Box 13700 Dubai, UAE Tel: +971 (0)4 440 9100 Fax: +971 (0)4 447 2409 Web: www.thebigprojectme.com © Copyright 2012 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

6 | www.thebigprojectme.com

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Leighton “not preparing to shed” HLG Mitigation after chairman says “we should never have gone into” JV

eighton Holdings, the Australian partner of Habtoor Leighton Group (HLG) has confirmed the UAE based joint venture, which is currently working on Dubai Pearl among other projects, will not dissolve its partnership with Habtoor Group, despite recent comments from Leighton’s chairman claiming that it should never have got into the partnership. Stephen Johns (pictured) was quoted by The Australian Financial Review earlier this week as saying: “In hindsight, no, we’re not happy with [Al Habtoor Leighton], we should never have gone into it.” Johns, chairman of Australia’s largest construction firm, Leighton Holdings, told the publication that Leighton had suffered losses of $152.7m in the six months to the end of December 2011, after the JV struggled to collect payments for projects in the region. Habtoor Leighton said it expects to collect only half of its unpaid legacy receivables over the next two years. A spokesperson from Leighton Holdings has since told The Big Project: “We’re working hard to recover those outstanding monies owed to us on a number of projects. “We’ve employed extra resources to build the relationships which are critical in the Middle East.” “As we get recovery and closure of these old projects then the weight swings towards new Habtoor rather than old legacy Habtoor. So if we’re retiring debt, then the business is cash flow positive and profitable.” Leighton’s spokesperson has also denied international media reports, published since The Australian Financial Review article, that claim the company is “preparing to shed” HLG. “Leighton is not ‘preparing to shed’ HLG. We said at yesterday’s AGM that part of our strategy deals with the ongoing business. “This is to have a HLG ‘IPO’ ready by 2016. This is about ensuring that the joint venture has the right structure, governance and pro-

jects to make it a sustainable business (moving forwards) in the future.” The HLG venture was established in 2007 and recent project wins in the region have included a $169m deal for mine-related infrastructure for the Ma’aden Alcoa Aluminium JV in Saudi Arabia; a $515m contract for the largest integrated hotel complex in the region on the site of Dubai’s Metropolitan and a $290m contract for the construction of the first phase of Doha’s North Gate Mall and office complex. Earlier this year, the company

also unveiled a new corporate identity. “HLG has won a number of new projects which are typical of some of the new work opportunities the company is pursuing in the region and reflected the HLG’s growth strategy to expand into new geographic markets. Our growth strategy is based on diversifying our workload by both geography and work type with good quality clients who value our services,” the spokesperson said. Habtoor Leighton Group has not yet released an official statement on Johns’ comments.

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NEWS | REGIONAL NEWS

NEWS BULLETIN

NEWS | REGIONAL NEWS

3 MTA

QATAR’S PREDICTED CEMENT DEFICIT BY 2015 IN MILLION TONNES PER ANNUM

Qatar crisis: “delays and cost overruns” likely by 2015 Market analysis predicts negative effects of Euro and production capacities

atar’s construction programme could face “cost overruns and massive delays”, due to the European financial crisis and regional supply issues, according to a Tender Price Index (TPI) forecast. Considering more than 200 tender documents during a three year study, TPI authors MEED created a formula by simulating population growth against GDP to identify correlations with tender prices. “We are looking at all the project announcements, many of which are government driven, and the indication is that we will see a 17 – 18% increase in costs,” MEED general manager Emil Radameyer told The Big Project. “That 18% is conservative – it could be much higher,” he continued. Simulations were also made for materials. A cement deficit of 3 million tonnes per annum (MTA) is likely by 2015, considering

Qatar’s current production capacity of 6MTA. “We have highlighted the pit falls and it’s reasonably early enough for people to take action. Unless they secure supply at a reasonable market rate there will be delays and cost over runs. The powers that be need to take action,” Radameyer warned. It’s not all bad news – the void left by Qatar’s under capacity could pave the way for other regional companies to supply the market. However, if the financial situation remains unchanged in Europe liquidity could be affected, hindering private sector access to the market. “With the European crisis worsening, it could have a negative impact on investments and the private sector will not get involved in the construction boom in Qatar,” Radameyer added. The research was released only days ahead of the IOC’s announcement of potential 2020

Olympic hosts. Qatar missed out on the final shortlist, which includes Tokyo, Istanbul and Madrid. “Qatar cannot wait until that final announcement is made before they start to move on projects; they cannot afford massive delays on this,” Radameyer commented. MEED previously applied the same model to the UAE and currently has a team analysing Saudi Arabia. Turn to page 16 for a full analysis of the situation

FM franchise model established for African market Reliance FM to provide opening for FM start ups in Africa

t’s one of the most popular business models on the planet, immortalising golden arches and six inch sandwiches, amongst other things. Now one Dubai-based FM firm is looking to capture the same success for its overseas expansion programme. Reliance FM (RFM) has embarked on an international growth strategy by expanding its business under a franchise model in Africa. “For me, this is about making something happen that nobody has thought about,” chief executive Dilip Khatwani commented. RFM will provide opportunity to businesses looking to break into Africa’s FM market, by supplying full branding; a trained FM professional under a two year agreement;

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FM software under locally procured licenses; and referral clients known to RFM. The franchisee will be responsible for staffing the operation and providing local contracts. Franchising fees and annual profit percentages will be payable to RFM. “I have had mixed reports from global players on the idea, but if the franchising model can work for other industries why not for FM?” “We are floating the franchise model for new markets currently, and that process began eight months ago,” Khatwani continued. “This will take care of a major gap in the industry. FM is such a big sector to teach, so

having this model is a smart move for that guidance,” he added. Formerly working for CB Richard Ellis, Khatwani established reliance FM in Dubai in 2003, ahead of his prediction that the real estate market would soon shift its focus from construction to maintenance. “FM has always struggled to find an identity in construction but recently that has changed and people are becoming aware that a huge percentage of a project’s budget is spent on actually maintaining a building after it is completed.”

DOOSAN GROUP PROFITS REPORTED FOR THE 2011 FINANCIAL YEAR

Kuwait plots $6bn airport expansion 13 million passenger capacity by 2016

uwait’s civil aviation directorate announced on May 22, that the Gulf Arab state would spend $6bn to expand its international airport to handle 13 million passengers by 2016. The current passenger terminal was built in 1980 and has the capacity to handle around seven million passengers a year, said Fawaz al Farah, speaking on the sidelines of the airport show in Dubai. He added that capacity would be increased further to 25 million by the year 2025. Kuwait’s national airlines and the privately owned, low-cost Al Jazeera Airways currently operate out of the airport and al Farah said that in 2011 more than 8.5 million passengers passed through the gates. He added that more than nine million passengers are expected this year. The plan is to expand the passenger terminal to occupy 710,000m2 and will cost $3bn to do so. The other $3bn will be spent on other projects at the airport, including widening the runways, building a new control tower and a new cargo town, al Farah said in a report carried by the Associated Free Press.

“We will be top 3 by 2015” Doosan regional director pledges to compete with Caterpillar and Komatsu

oosan Infracrore regional director Gaby Rhayem has pledged to drive market share across the company’s regional operations, to a level that will compete with Caterpillar and Komatsu. Seizing on the benefits posed by its Korean heritage, Doosan aims to be a top three dealer by 2015, with staggered progress taking the company from top 10 to top five during 2012. Since 2011, the dealer has already jumped 12 places. “The company has a big vision and we have a forecast,” stated Rhayem. “We are talking to management about our targets and plans at the start of each business year. We talk to our distributors in each region, based on the projects we read about, and they give us feedback on the volume of the market and our

business and unit directors will see how much share we can take of that,” he added, also revealing the wider Doosan Group reported profits of US $32 billion in 2011. The UAE is the second largest investment destination for South Korea and its largest importer in the GCC. Only weeks into Q2 2012, trade values are predicted to surpass last year’s US$20 billion. “We are very realistic. There is something to learn from the technology and IT business. A couple of years ago, everybody wanted to buy Japanese products and American. You look today and it’s LG and Samsung, the Korean firms who are number one,” he concluded. Turn to page 24 for the full interview with Gaby Rhayem

Investor invitation from Iraqi minister Increased oil production will fund construction boom

he Iraqi construction and housing minister has said the government is looking for investors in housing and infrastructure projects, as he extended an invitation to delegates at the Arabian World Construction Summit 2012 in Abu Dhabi to look at potential opportunities for projects and investments in the country. Iraq plans to double its oil production to six million barrels per day, by 2016, to fund the boom and has told potential investors they can expect to see a return then. Iraq needs to build 2.5m housing units and 7000km of new roads by 2016, Mohammad al-Darraj said. The government is set to spend $2bn over the next two years on social housing projects and another $2bn on low cost housing, in addition to $5.8bn on roads, he explained. Although the country’s total 2012 budget is $112bn, al-Darrajsaid that no budget can meet the infrastructure needs of Iraq, urging investment in the country.

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NEWS | REGIONAL NEWS

$32b

NEWS | REGIONAL NEWS

Qatar to invite first RFP for railwaY Local partner required to bid

atar’s Railway Development Company said on May 22 that it would invite the first Requests for Proposals (RFPs) for the underground work of the Qatar Rail Network project from June of this year. An official for the company, who did not wish to be named, told Zawya that although this was a slight delay from the expected date of tendering in April 2012, more than 70 companies had already expressed their interest in bidding for various parts of the metro project, of which 35 have pre-qualified. He added that any company intending to participate in the bidding process would require a local partner. The $42.9bn metro system will be built in four phases. Phase 1A aims to be ready by 2019, the official said. This

would involve 52 kilometres of track and 26 stations, he explained. Most of the track would be laid underground except for the suburban districts. Qatar had aimed to complete the first phase of the railway in time for the 2020 Olympics, but has not been shortlisted to host the event. The country has already been on an accelerated development program to complete the metro project, along with other necessary infrastructure, in time for the 2022 FIFA World Cup. The project aims to link up Qatar’s various planned railways into a ‘comprehensive and consolidated’ national railway system. This is part of the government’s plan to connect Qatar to the rest of the GCC, the report added.

Global steel production up 1.2% in April 2012 China bucks average global trends with 2.6% rise

ccording to figures released by The World Steel Association (Worldsteel), the global growth of crude steel production in April 2012 rose by 1.2% year-on-year. The rise takes the total production figure to 128 million tonnes, as steel manufacturers adjusted their output to weaker demand and falling prices. Last month, Worldsteel forecast global steel consumption growth to slow this year, on weaker economic growth in top consumer China and

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uncertainties about the debt crisis in the euro zone. Steel consumption generally peaks in the northern hemisphere spring, as construction and manufacturing activity quickens in the warm, dry months preceding the summer break. Steel output in China, the world’s largest producer and consumer of the alloy, rose by 2.6% to 60.6 million tonnes in April, the data showed. bucking the average global trend by more than double.

The news as it happened from ‘Arabian world construction’

NEWS | ONLINE REGIONAL NEWS NEWS

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Underwater hotel likely for Dubai The Water Discus Hotel will be the largest of its kind

semi-submerged hotel in Dubai, UAE has been given the green light. The Water Discus hotel is expected to be the largest of its kind in the world. It will consist of two disc shaped structures – one above the surface of the water and one underneath. The concept is the brainchild of Polish firm Deep Ocean Technology (DOT), in collaboration with researchers from Gdansk University of Technology. Last month, Dubai World’s ship building subsidiary, Drydocks World, signed an agreement with BIG InvestConsult to build the

Dual Qatar/ KSA boom will send business East Stronger, quality Chinese market to fill local shortfall, says Kanoo GM

he region may be preparing for a joint construction boom in Qatar and Saudi Arabia, but Chinese manufacturers will be the main beneficiaries, according to Kanoo GM Bob Jennings. Despite being on the cusp of an unprecedented – and much anticipated – dual boom, the effects of global economic conditions will inhibit company’s ability to supply the Qatari and Saudi Arabian machinery markets, paving the way for Chinese suppliers and manufacturers to fill the void left by local and western brands. “We [the industry] will eventually come to a situation where we are not able to supply the demand, because we will not be in a position to take the risk to put a lot of money into a market, just in case things don’t go the way we plan,” Jennings told The Big Project. “We are ordering more stock, but manufacturers are coming to a point where their [supply] chains are becoming stretched and delivery times are extending. The industry will invariably end up in the same situation we ended up in between 2004 and 2006,” he added, continuing: “China will come in and start to fill the market gaps because we will

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not be able to manage it.” With significant improvements to the quality of goods, compared to those supplied prior to 2008, Chinese companies are also increasing their stake in the region’s oil and gas industry and China-UAE trade in particularly has experienced a 35% YOY growth over the last decade, according to figures published by Messe Frankfurt. In recent months, Chinese brand LuiGong has opened a dedicated Middle East base, which now accounts for 10% of LiuGong’s international revenues – and XCMG has reported huge market shares in the region. “Asian companies this time will come with a higher quality product and long term mindsets. I think that next time the Chinese will come out with a better reputation and they will get an even bigger foothold in the region than the last time round. “That will be at the expense of the western and Japanese companies and it will be difficult for them to recover,” Jennings added. Turn to page 43 for the full interview with Bob Jennings

hotel in Dubai. Construction times and budget are currently undisclosed. The underwater segment of the hotel will comprise of 21 rooms. It will be submerged ten metres below the surface of the sea. Large windows in the rooms will offer views of coral reefs, fauna and animals of the Arabian Gulf. Safety is a primary concern and the underwater discus will automatically rise above the surface of the water in case of danger. Satellite discs with positive buoyancy will be detachable and act as lifesaving vessels if necessary.

Labour union for Qatar construction workers MoL also redefines sponsorship of foreign workers

he rights of workers in Qatar are to be protected under a new labour union, announced today by Qatar Ministry of Labour. According to media reports, it will be the Gulf country’s first such body. The Labour Union will be elected and independent according to the Ministry and will cover construction workers of all nationalities. The Union will have the right to “receive the complaints of workers and protect their rights”. “Planning for the World Cup is not restricted to construction and infrastructure improvements, but includes addressing workers’ rights,” said deputy minister of labour, Hussein Al Mulla. Last week it was reported that sponsorship of foreign workers is to be scrapped as the recruitment of one million workers ahead of the 2022 World Cup begins. “There is an intention to cancel the sponsor system and replace it with a contract between the worker and the employer,” Al Mulla is quoted as saying.

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NEWS ANALYSIS | Tender price index

Qatar: trouble ahead? MEED general manager Emil Rademeyer explains the company’s recently released Tender Price Index (TPI) for Qatar and what it could mean for regional resource supply and construction costs

3 years average maximum time to build a stadium

“Vast and rapid capital investment will strain the resource supply chain to breaking point” 16 | www.thebigprojectme.com

hile the authorities deal with the disappointment of Qatar no longer being in the running for the 2020 Olympics, in reality it may not be an entirely bad thing. Last month, research teams at MEED published data that suggests the Gulf state’s sporting ambitions could fundamentally change the market dynamics of the entire region, and not for the better. The forecast value of projects to be awarded in Qatar this year is more than $15bn, and according to the research that will double over the next two years and peak in 2017, at around $40bn. The result? According to the authors “this vast and rapid capital investment will strain the resource supply chain to breaking point”. Cement supply will experience “acute deficits” by 2013 and will hit a 3 million tonnes per annum deficit by 2015; a

combination of infrastructure shortfalls and restrictive legislation will rule out the possibility of importing vital resources; there are acute shortages of skilled labour; and construction costs will rise by a “conservative” 18% before the private sector is even involved. “We are predicting an 18% cost increase in five years, which isn’t that bad, but the point is if the private sector comes to the party it can get ugly. The fact that there also aren’t enough materials and resources means there are a lot of red flags going up,” he adds. The report is the result of a three year study; considering data from more than 200 regional projects to calculate formulas and trends upon which to make predictions. The index starts in 2012, and predicts the future trends for costs in and around Doha up until 2017. Assuming all the projects that are currently in the pipeline go ahead according to plan,

forecast value of projects awarded in Qatar during 2012

current domestic cement production capacity in Qatar

“We are saying 18% in five years, which isn’t that bad, but the point is if the private sector comes to the party it can get ugly. The fact that there also aren’t enough materials and resources means there are a lot of red flags going up” researchers calculated the amount of materials that would be needed and then compared these figures with actual capacities. The study may appear comprehensive, but the data analysed does not include private sector investment, which Rademeyer admits will “change the entire picture”. “Next year we will know much more than we do now in terms of where the industry will be able to deliver and what the impact of that will be. I imagine that we will see a lot of private sector investment, 18% can easily become 40% or whatever. Things are going to change, you need to account for that,” he warns. While Cityscape Qatar was held last month, official figures are yet to be released regarding the amount of business done and the number of visitors present. However, considering that Rademeyer’s analysis claims 100,000 people will be required to

staff the games themselves, the real estate industry will naturally see an increase in activity, paving the way for the private sector to cash in on the burgeoning market. Private sector involvement in the UAE was a primary contributor to a 90% rise in construction costs over seven years and with predicted deficits in vital materials and tight completion deadlines, financial returns on projects are already under threat. “From the professional’s perspective, the conversation is on risk and that is dealt with in two ways from the construction phase, it’s either contingency where you allow for unknowns, or escalation,” Rademeyer says, adding that planning for either outcome is “heavily neglected”.

Behind the scenes

While he admits there are conversations and planning strategies currently being formulated

100,000 people will be required to staff the World Cup

behind the scenes, Rademeyer advises that planners adopt a reverse engineering method in their plans that also considers the impact of project delays and maps a timeline for all project milestones, reaching back from the required completion date. “If Qatar is setting aside $60 billion to do projects A to Z, is it going to be enough? They might say a stadium of this size will cost you X, the point is by the time that stadium is finished in 2017, it might be X plus 30%. So how does that affect your investment plan? The government might decide on this basis they can only do A to whatever, in terms of project investment, so it’s about bringing balance to the market and reality,” he urges. “If you start a project today it might cost you $100m, if you start next year with tendering and design and whatever else and it’s a 36 month project, you’re going to need another 23% on

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NEWS ANALYSIS | Tender price index

$15bn

6.2MTA

XXXXXXXX NEWS ANALYSIS | XXXXXXXXXX | Tender price index

100,000 predicted figure for GDP per capita in 2012

$120bn estimated cost of hosting World Cup games

that $100m, just to finish the project.” If the adverse affects of price increases and supply and demand imbalances do hit Qatar, the problem will not be localised. Conducting similar studies on the UAE and Saudi Arabia, Rademeyer says regional dynamics will require heavy investment if population increases — compounded with current power and water shortages — are going to be addressed before they pose even greater problems; a particularly topical issue considering the Arab Spring. Yet despite the warnings, the overall message only confirms a sharp increase in regional construction activity, and while strict, realistic and balanced planning will be needed to make the finish line, there will be a significant increase in opportunity across the region. “Starting with the end goal in mind and keeping in mind the resources that are required, we are able to calculate a lot of the resource balancing that is required. It’s impossible to have a programme for a project that works out exactly how you planned it, but at least you can bolt on certain models where you can see what the impact would be if you delay a project by six months,” Rademeyer adds.

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IN PROFILE | FAMCO

Famco financial

On track to achieve a record year, Famco managing director Paul Floyd grants The Big Project a preview of the dealer’s new in house financial services

“There won’t be many large fleets paid for with surplus amounts of cash. Most companies are financing that somehow” 20 | www.thebigprojectme.com

hen Paul Floyd spoke to The Big Project in December 2011, the company was celebrating a newly struck exclusive dealership with Volvo Construction Equipment in Saudi Arabia, following the acquisition of Al-Rehab Equipment and Machinery Company. This year, Famco will open branches in Qatar and Oman; its fifth UAE branch at Dubai Investment Park; and will introduce in-house financial services for its machinery customers. “When we put all this together, it’s looking very, very promising,” comments Floyd, who further shares that Famco is currently supplying to “just about any project that you can think of”. In reaching out to these new markets, Famco will increase its regional branch network from 12 to 25 by 2015; increase its product portfolio; and crucially,

will also begin operations in financial and insurance services, by working with financial institutions and the financial arm of Al Futtaim’s sister companies. Describing the diversification as offering “another piece of the solution”, Floyd says: “There won’t be many large fleets paid for with surplus amounts of cash. Most companies are financing that somehow through credit lines or they may have or new credit links they negotiate. So we offer another credit line option for our customers and make that part of the package.” Reporting a market that is increasing in sophistication, Floyd says smart fleet management is demanding tailor made and comprehensive solutions. “You always have to understand what your customers want and need and we want to be pioneering the way in our offering of a total solution concept.

IN PROFILE | FAMCO

“I think that changes the way we sell; we’re not just there to sell a machine, we’re there to tailor a solution that fits their requirement. It may not be the cheapest from day one but over a life time it will give the greatest value for money,” he explains.

Meeting needs

As anybody who has worked on a project will know, Famco is far from the first to fill the vacuum left by financial institutions, or indeed offer credit facilities. This facility will cater to the needs of truck, bus, construction equipment, generator and compressor customers in the transportation, construction, oil and gas, manufacturing, warehousing and marine sectors. Striving to be “the most customer focussed supplier in the region”, Floyd explains that Famco Financial Services “further solidifies the relationship with customers and principals that we have built over many years”.

“I think that changes the way we sell; we’re not just there to sell a machine, we’re there to tailor a solution that fits their requirement”

Options can be Sharia’h compliant and capable of meeting the needs of an “evolving and ever- demanding” market. “This facility takes our customer service one step further and helps customers free up their cash flow to get the machines they need through our multi bank approach,” explains Floyd.

Boom time

Famco’s expansions and growth appear to be bucking accepted market trends; while the majority of companies grow during strong economic times, this expansion didn’t begin until well into a world-wide recession that has flawed a number of international powerhouses, not to mention a number of the dealer’s competitors. “I don’t think we were any different to any other company in the Emirates from 2006 to 2008, in that we had such a boom in our domestic market it was as much that we could do to keep up with the pressures of the growth here; everybody was struggling to keep up with the demand. “I think now that we have been through the worst of the downturn we are coming out in a really positive way, we just don’t see that enormous spike coming again anytime soon. So I think it’s a strategic decision to look at what we have done here and see if we can do it

www.thebigprojectme.com | 21

PROFILE | AL FUTTAIM elsewhere, see where are there are opportunities,” he continues. Counted among those opportunities currently are the ambitious plans in Saudi Arabia, where product launches will be driven by unique geographical needs, rather than recreating templates because they were successful in other markets. Additionally, Saudi Arabia is a country not only in need of construction vehicles but power also; a demand that has driven growth in the generator branch of the business, particularly for Himoinsa machines. “This can only be positive for our employees as it gives people greater career opportunities. All vacancies are advertised internally, so if you want to go to Saudi Arabia or Doha or Muscat or Abu Dhabi, people have the chance to develop and we retain our talent,” Floyd explains.

Home market

Famco’s second major announcement over the last month is the launch of a new branch in Muscat, in the Sultanate of Oman. During an inauguration attended by industry leaders, Floyd commented: “Oman’s vision to

22 | www.thebigprojectme.com

invest in its infrastructure has heightened construction activity in the country. Our aim is to set a new benchmark here and be part of this exciting vision. Thanks to our new facility in Muscat, and our highly qualified team, we very much look forward to the opportunity of developing our operations in Oman.” The new market will provide another distribution channel for staple brands Linde Material Handling Equipment; Merlo Telescopic Handlers; Ingersoll-Rand Industrial Air Compressors; MASE Marine Generators; Hart and Nassau Industrial Doors; Stertil Docking Systems; and Bott workshop and in-vehicle Storage Solutions. The icing on the cake is the inauguration of the fifth branch in Famco’s home network. A “state of the art” new 25,000sqm facility in Dubai Investment Park (DIP), due for inauguration by the end of June. The DIP base will have an adjacent PDI centre for the UAE that will become the primary storage and PDI centre for equipment. “The centre has been designed by us with the help of our principals; it will have the latest technology throughout and IT systems; brand new and built exactly for purpose.

“Initially we will have around 100 people based there, and the main workshop facilities will remain here but that will grow and probably double quite quickly,” Floyd predicts. “I think the general message is watch this space because we haven’t finished yet.”

“The centre has been designed by us with the help of our principals; it will have the latest technology throughout and IT systems; brand new and built exactly for purpose”

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BUSINESS BRIEF | DOOSAN

Crouching bobcat, hidden tactic

The UAE is the second largest investment destination for South Korea and its largest importer in the GCC. Only weeks into Q2 2012, trade values are predicted to surpass last year’s US$20 bn. The Big Project speaks to Korean equipment dealer Doosan about its time in the Middle East and the plans to seize opportunities posed by its native market

“This year we expect around 15 to 20% growth in the construction sector generally across the Middle East”

host of dizzying figures are flooding the media concerning trade relationships between Korea and the UAE. According to data shared by the South Korean Minister of Strategy and Finance, Bahk Jaewan, Korea’s direct investment to the UAE stood at US$ 1.24 billion by 2011 and in 2012 it is predicted that trade values between the two countries will surpass last year’s $20 billion by around $2 billion. Since the 1970s, Korean companies have been claiming a large part of the Middle East and Africa’s oil and construction markets, at times flooding the

24 | www.thebigprojectme.com

region with investment and equipment. The most recent example is the Korean consortium appointed to build and operate Abu Dhabi’s four nuclear reactors, which last month received significant – albeit indirect – financial state support. Today, says Doosan Infracore district manager, Jae Ho Kim, the role of Korean companies in regional construction is changing as they move to become subvendors and carry out projects for prime contractors. The shift is paving the way for myriad opportunities for Doosan Infracore. “The company has a big vision and we have a forecast,” asserts regional

Doosan’s deadline to be a top three equipment dealer

BELOW: Gaby Rhayem.

“We are very realistic. There is something to learn from the technology and IT business”

$1.24 b billion Korea’s direct investment to the UAE to date as of 2011

director for the Middle East, Gaby Rhayem. “We are talking to management about our targets and plans at the start of each business year. We talk to our distributors in each region, based on the projects we read about, and they give us feedback on the volume of the market and our business. Then unit directors will see how much share we can take of that,” he adds, also revealing the wider Doosan Group reported profits of US $32 billion in 2011. The Arab Spring may have hit market forecasts, even before company operations in Iran were suspended in 2010, but in combating the uncertainty experienced in the face of ongoing political and economic developments, Doosan is relying on its spies on the ground – its network of regional dealers – to feed back the information that paves the way for its heady ambitions. In the US and Europe, Doosan has held its number one market share for six consecutive years. In the Middle East, having already jumped 12 places over the last year alone Doosan’s current target is to move from being a top 10 equipment dealer to one of the top five; enabling a break into the top three by 2015. A top three ranking will subsequently pave the way for Doosan to compete with Caterpillar and Komatsu. ABOVE: Jae Ho Kim.

$20 b Korean/UAE trave values in 2011

“This market isn’t being targeted for fun. Markets need to invest a lot but I believe we can return to the same levels of business we saw in 2007 and 2008”

Effective structure

For Doosan, Dubai is the hub of a regional network that spans Pakistan to Libya via 15 Middle East, Levant and North African countries. Each geographical territory has its own exclusive dealer covering up to three brands with the only exception being Saudi Arabia, where each brand has its own dealer. Already responding to a marked increase in demand, the Jebel Ali based regional head office in Dubai has been re-structured to centralise operations and assign each of the office’s 14 employees to specific tasks in customer service, credit, parts and management. “This year we expect around 15 to 20% growth in the construction sector generally across the Middle East,” reports Kim, with Rhayem adding: “This market isn’t being targeted for fun. Markets need to invest a lot but when the political and economic situation is quieter I believe we can return to the same levels of business we saw in 2007 and 2008. “Everybody is confident and there are a lot of projects on hold ready to go back on the table.” Primarily naming Libya and Egypt, there are also hopes that former strength seen in the Syrian market will soon be able to return. On the downside, Rhayem comments Kuwait’s inflation “is becoming a big issue” and that Iraq has potential, but in reality doesn’t have any actual projects to be executed. Arming for the upturn and a strong battle against its competitors, Doosan has this year showcased a number of new products, designed for the regional construction and mining markets, at international trade shows. These have included a new wheel loader specifically for the MEA region; a new ADT dump truck; excavators, Bobcat machines, compressors and generators. “It shows the dynamic of the company to that we always propose a solution to our customers,” Rhayem comments, naming these as oil efficient and low maintenance equipment. “We are very realistic. There is something to learn from the technology and IT business. A couple of years ago, everybody wanted to buy Japanese products and American. You look today and it’s LG and Samsung, the Korean firms who are number one,” he concludes.

Gaby Rhayem also participated in The Big Project roundtable discussion held during Intermat Paris. Turn to page 48 to read the conversation.

www.thebigprojectme.com | 25

BUSINESS BRIEF | DOOSAN

2015

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• Sales • Rentals

• Spare Parts • After-Sale Service Support

Riyadh P.O.Box: 753, Riyadh 1421 Phone: 01 491 4624 / Fax: 01 491 4404 E-mail: mdrsales@ruh.kanoosa.com Kanoo Machinery LLC P.O.Box: 290, Dubai, U.A.E. Phone: +971 4 3378400 / Fax: +971 4 3373660 E-mail: exec.assistant-machinery@kanoo.ae

Dammam P.O.Box: 37, Dammam 31411 Phone: 03 857 1265 / Fax: 03 857 7139 E-mail: mddsales@kanoosa.com

Jeddah P.O.Box: 812, Jeddah 21421 Phone: 02 263 6171 / Fax: : 02 263 2979 E-mail: mdjsales@jed.kanoosa.com

Bahrain Yusuf Bin Ahmed Kanoo WLL P.O.Box: 45, Manama KSA Phone: +973 17738200 Fax: +973 17732828 E-mail: ajit.s.nair@ybakanoo.net

www.kanoogroup.com/ kanoomachinery

News

CAREER LADDER | VICTAULIC

Victory hydraulics Victaulic’s newly appointed product development manager, Henrik Ulrich, explains his strategy to keep a global brand ahead of regional innovation

H ABOVE: Henrik Ulrich.

enrik Ulrich is a man on a mission. As product development manager for Victaulic, he is tasked with overseeing the development of new products that are “in tune” with the regional market, bridging the gap between Victaulic’s sales department, customers and R&D to ensure demands for innovative products, that meet multiple legislation, are met. With a degree in export engineering from VIA University College, Horsens, Denmark, the former HVAC sales manager has spent his 15 year professional career working in global exports for the HVAC market and will now oversee Victaulic’s operations in the EMEAI region.

“I have always enjoyed meeting different people and cultures, as well as travelling, and through my work I have found that I have had many opportunities to indulge these passions,” he comments. “This is still true today and for this reason I still like visiting distributors and enjoy all aspects of direct sales.” One vital element of his latest role will be to provide an interface with the company’s US based product managers. Described by Victaulic as “vital”, this interface will be the basis for R&D for the EMEAI region and will provide the basis upon which new products are launched.

www.thebigprojectme.com | 29

CAREER LADDER | VICTAULIC

“My main role will be to act as a link between sales, the customer and R&D, whilst making sure new developments will be in tune with the EMEAI market demand and make a profit” Exclusive portfolio

It’s no simple task, but Ulrich has a simple strategy: “Communication, communication, communication. Keeping as close as possible to everyone, listening carefully and being as openminded as I can. “My main role will be to act as a link between sales, the customer and R&D, whilst making sure new developments will be in tune with the EMEAI market demand and make a profit,” he says.

Historic roots

The Victaulic empire is built on mechanical pipe joining systems; specifically a mechanical bolted coupling that can “engage into grooves and use a gasket seal”. The concept originated in World War I, and developed because of the time and parts savings

30 | www.thebigprojectme.com

it facilitated, with the name Victaulic coined by combining the words ‘victory’ and ‘hydraulic’. Over the last 80 years, the company has grown to serve the industrial, commercial and institutional piping industries and today employs more than 3500 people worldwide. “My aim for this role is to keep Victaulic at the forefront of grooved product innovation, with new products that fulfil the requirements of customers and that continue to help to ease their workload,” Ulrich asserts. “Because EMEAI consists of multiple countries with different cultures, and legislations, this makes it very important to always be up to date. This will ensure that future products can fulfil the requirements of the market and the legislation of different countries across the region,” he adds.

So far the EMEAI region has demanded a number of products, exclusive to the Victaulic portfolio. Its high grade fire protection products have most famously been used for Ferrari World, Abu Dhabi and Kayan Utilities, an ethylene production facility in Saudi Arabia. Pre-fab systems were employed to the Yansab Olefin Plant project in the industrial area of Yanbu, Saudi Arabia, where an existing system was replaced with a Victaulic grooved system. The method reduced the length of the project overall and reduced costs by around 30%, says the company. Worldwide, Ulrich reports fluctuations in demand, particularly for these grooved and pre-fabricated systems, at times pegged to the skill sets of local workers. “The EMEAI is a large region and there are trends, for instance in certain parts of Europe, for an increased use of grooved systems, in response to a perceived shortage of skilled welders,” he explains, adding: “I have also noticed a trend towards pre-fabrication, with parts of piping systems being assembled off-site, and mechanical grooved systems playing a role here. Every region has its differences and I am looking forward to learning more about them.” For now the focus will firmly be on expanding a product portfolio that not only reflects the needs of the region, but also leads it. “There are amazing opportunities for Victaulic and a growing demand for our products in the coming years. If we look at our current range of products and see their many different applications, the potential is huge. I am looking forward to helping to grow the business and ensuring Victaulic stays ahead of the competition when it comes to R&D,” Ulrich adds.

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COVER STORY | Infrastructure ABC

COVER STORY

Financing Arabia’s future A

mbition; check. Knowledge; check. Demand; check. Finance; check. On the surface it would appear the Middle East has everything it needs to build a world class region, but experts say vital finance models are still ineffective and at times impossible the implement. Private sector involvement and foreign investment are urgently

needed to ensure the mega-projects currently on the drawing board are realistic, proprotionate to demand and aligned with the priorities of the MENA region’s 150 million residents. It’s not just the established markets of the core GCC countries making huge investments; Iraq, funded by a 100% increase in oil production to 2015, will build 2.5 million new homes over the next

four years. Projects are restarting in Egypt and Libya and Jordan’s power and water requirements require urgent address. Over the next eight pages, experts from the recent Infrastructure Arabia conference dissect the problems behind the projects their finance models, and The Big Project presents the Middle East’s most expensive infrastructure projects.

www.thebigprojectme.com | 33

XXXXXXXX COVER STORY | XXXXXXXXXX | Infrastructure ABC

COVER STORY

“To make all this happen at the same time will need some financial liquidity”

On time, on budget, on demand Dr. Arman Farahmand-Razavi Director, Transport, Ramboll Middle East, UAE

nfrastructure investment is something that always happens. The emphasis sometimes changes driven by changing demographics, for example to social infrastructure and there are other forces that sometimes come into play, but the focus needs to be on how we are investing in projects and how to get the best out of the assets; it’s all about how to get the best out of the resources we have. This becomes difficult when trying to entice the private sector into projects that have competition for the same infrastructure type; there are a number of competing ports and airports in the market and investing in those requires good due diligence and conviction that you are able to

34 | www.thebigprojectme.com

maximize your revenue from that investment and minimize your risk. In terms of the finance and execution models for projects, we are seeing a lot more design and build, which means some of the risks and time frames are shifting away from the public sector. In the absence of comprehensive PPP legislation, consultants have to work very closely with clients, that is the construction companies, to analyse where they can get value in projects and it’s the highest value models clients are looking at. The vision is still there but we as the private sector need to pace ourselves to minimize the risks. The essential thing is to have the

necessary infrastructure in place at the time it is needed, but that doesn’t necessarily mean we need to build something new, we just need to get the best value out of what you have now to make sure you have the right platform for continued development. One of the key drivers we are seeing is the issue of sustainability and the sustainability agenda. This is going to touch on a lot of downstream activities and you need the mindset to drive this through the whole lifecycle of a project. A lot of infrastructure has been built over the last 40 to 50 years in the region and now asset management is becoming a priority, just looking at how we are investing, re-investing, maintaining and updating those assets and sustainability is a large part of that. Over the last decade the world has changed, and it will change again before 2020 and 2030 when the current master plans are due to mature.

A guide to PPP models

By Jamal El Zarif, Ph.D. technical advisor, Abu Dhabi Municipality, Infrastructure Sector Buy-Build-Operate (BBO) Transfer of a public asset to a private or quasi-public entity usually under contract that the assets are to be upgraded and operated for a specified period of time. Public control is exercised through the contract at the time of transfer. Build-Own-Operate-Transfer (BOOT) A private entity receives a franchise to finance, design, build and operate a facility (and to charge user fees) for a specified period, after which ownership is transferred back to the public sector. Build-Operate-Transfer (BOT) The private sector designs, finances and constructs a new facility under a long-term Concession contract, and operates the facility during the term of the Concession after which ownership is transferred back to the public sector if not already transferred upon completion of the facility. In fact, such a form covers BOOT and BLOT with the sole difference being the ownership of the facility.

through on-going regulatory authority. Build-Lease-Operate-Transfer (BLOT) A private entity receives a franchise to finance, design, build and operate a leased facility (and to charge user fees) for the lease period, against payment of a rent. Finance Only A private entity, usually a financial services company, funds a project directly or uses various mechanisms such as a long-term lease or bond issue. Design-Build-Finance-Operate (DBFO) The private sector designs, finances and constructs a new facility under a long-term lease, and operates the facility during the term of the lease. The private partner transfers the new facility to the public sector at the end of the lease term. Build-Own-Operate (BOO) The private sector finances, builds, owns and operates a facility or service in perpetuity. The public constraints are stated in the original agreement and

Operation & Maintenance Contract (O&M) A private operator, under contract, operates a publicly owned asset for a specified term. Ownership of the asset remains with the public entity. (Many do not consider O&Mâ&#x20AC;&#x2122;s to be within the spectrum of PPPs and consider such contracts as service contracts.) Design-Build (DB) The private sector designs and builds infrastructure to meet public sector performance specifications, often for a fixed price, turnkey basis, so the risk of cost overruns is transferred to the private sector. (Many do not consider DBâ&#x20AC;&#x2122;s to be within the spectrum of PPPs and consider such contracts as public works contracts.)

$30 bn DOWNSTREAM REFINING PROGRAMME EXPECTED TO BE AWARDED IN KUWAIT

www.thebigprojectme.com | 35

COVER STORY | Infrastructure ABC

COVER STORY

XXXXXXXX COVER STORY | XXXXXXXXXX | Infrastructure ABC

COVER STORY

More than money

Ivan Woods Head of project finance advisory, BDO Corporate Finance Middle East

“Governments of the oil rich countries are still providing full finance on some projects and this is causing two problems. Firstly it makes it difficult for the private sector to enter the market, but secondly without the private sector ‘check’ and a partner to analyse and share risk, you’re likely to end up with a country full of gold-plated competing infrastructure”

36 | www.thebigprojectme.com

$70 bn VALUE OF CONTRACTS AWARDED BY THE GOVERNMENT OF SAUDI ARABIA last year

aking a step back from the individual projects themselves, it’s clear that across the region there is a huge increase in demand for these projects and demographics is one of the key driving forces. Populations across the board are expected to increase substantially and the priority chain should be social infrastructure, then power and water projects, followed by mass transportation. To coordinate this, planning on a bigpicture level is key as is institutional ability to analyse different types of procurement. It’s essential to ensure the vision can be implemented on ground and that departments involved have the capability in terms of human resources and knowledge to push individual projects forward. Some countries have done well with that, some countries have had trouble getting the PPP law set up, but generally it’s all going in the right direction. However, capital markets are still not recovering and a number of big international banks that have been looking at projects in the region are pulling back. But while there is still a significant project finance freeze, it remains true that if you have good projects you will find finance. For some of the smaller social

infrastructure projects you find people increasingly looking to local financing sources, which are less affected by the overall global financial crisis yet can encourage discipline on the scale and types of projects. Five years ago this wasn’t happening because liquidity then made it easier to raise billions of dollars from an international bank without worrying too much. Being forced to be a bit more creative and to find alternative sources and finance from local commercial banks makes things more complex and more time consuming to get going, but it is not bad for the project itself as there is more due diligence. Governments of the oil rich countries are still providing full finance on some projects and this is causing two problems. Firstly it makes it difficult for the private sector to enter the market, but secondly without the private sector ‘check’ and a partner to analyse and share risk, you’re likely to end up with a country full of goldplated competing infrastructure .

Procurement issues

The classic BOT model has declined and governments are analysing the range of procurement methods from design and build to PDFA to PPP, which is a healthy process. Although depending on which countries you are looking at, the ability to implement a full PPP project is not always there. Depending on where you are in the world, the standards vary. For example, Egypt has a PPP programme which has been pretty successful but other countries

$150 bn VALUE OF PROJECTS TO BE AWARDED IN THE GCC over the next five years

are playing catch up and are doing it on a bit of a haphazard basis. If you look at an airport for example, which is a highly regulated business, the regulatory structure to be able to explain to your $1.5billion investor exactly how they are going to be paid and how the asset will mature over time, is missing. Something that could be very useful would be to draft overall PPP frameworks to be used across different projects, but it is also good to have a range of procurement models that are constantly under review. Abu Dhabi’s Mafraq Highway is a classic example of developing a large and complex PPP model without institutional understanding, and it just didn’t work properly. The PPP framework doesn’t have to be chapter and verse, but getting the basic building blocks of what is needed from such a project � the essentials of the tendering model so investors will know what they are getting into and again the regulatory structure they can look to for a long term concession � are relatively straight forward building blocks that can then grow into a PPP programme. Now is a good time to invest in establishing the institutional capability to ensure there is regulation, institutional ability to repair, tendering and procurement processes in place. Power and water projects are a priority but a lot of the social infrastructure needs to be focussed on now before it really becomes as issue. Following on from affordable housing, the population needs education and healthcare. They are all priorities and there is a lot to do.

“Now is a good time to invest in establishing institutional capability to ensure there is regulation, institutional ability to repair, tendering and procurement processes in place”

www.thebigprojectme.com | 37

COVER STORY | Infrastructure ABC

COVER STORY

XXXXXXXX COVER STORY | XXXXXXXXXX | Infrastructure ABC

COVER STORY

Planning ahead

Dr. Ghassan Ziadat Director of infrastructure (UAE) and regional head of bridges, Middle East and India, Atkins

38 | www.thebigprojectme.com

“To make all this happen at the same time will need some financial liquidity. If you have done the maths, you will find that even though some of the countries are fairly well endowed the amount of investment is quite phenomenal”

2.5 m million homes to be built in iraq by 2016

here are many large active projects across the region, but having good master, market and flexibility plans for phased development is essential and because nobody ever really knows what will happen in the future, in the current political and economic climate, plans must show flexibility. Over the last few years, the region has experienced a reality check. There was a philosophy that infinite development was viable and that ‘if you build it they will come’, but we are seeing a lot more reality now in terms of how much development the region can absorb. The key to making the developments happen is also having the financial structure; the investment available from the public and private sectors, from local and regional banking, and from the international monetary institutions. Although some of the countries have the financial backing, to make all this happen, at the same time will need some financial liquidity. For cash flow reasons there needs to be financing raised. If you look at the current income of the countries where these projects are underway, and the value of the projects; if you do the maths, you will find that even though some of the countries are fairly well

$70-85 bn PREDICTED TOTAL MENA CONTRACT AWARDS in 2012

endowed, the amount of investment is quite phenomenal. You will need somebody to bridge the financial gap over time and to attract foreign investment, private investors and local and regional banks. All these considerations bring in a very strong reality check; is the investment viable, sound and transparent? I don’t think the region can finance all its projects internally and it has to look to finding capital from world markets. It’s a paradigm shift and more legislation will be needed to make the market more open and attractive for foreign investment.

Priorities

Power and water projects and absolutely vital, not just in the GCC but the wider region, because this is one of the world’s poorest regions for water resources and water and energy production are intrinsically linked. Countries like Jordan have water once a week for a few hours a day, it’s an absolute priority. Fourteen years ago, AECOM was advising Abu Dhabi Municipality on its infrastructure and they were asking about the assumptions and the basis upon which we were making the plans. We were planning roads on a much smaller scale, but the leadership was saying that Abu Dhabi and all its islands was ready to lead the country; the population would grow, they had visions for the sustainability, water recycling, well ahead of these ideas being implemented elsewhere in the world. You have to have

proactive leadership and this is where, for example, when there are economic downturns and the governments have to maintain the construction industry and the population in jobs to keep the population ticking along. You have to plan for 20 and 30 years in advance, but then you have to have an adaptable plan. Governments also need to be proactive, not reactive, in making things happen; you can’t just step back and see what happens. For example, the UAE transport plan ‘connecting the nation’ is analysing all modes of transport, and has resulted in projects like Etihad Rail, the upgrading of ports and highways. It shows that Abu Dhabi is committed to improving its transport infrastructure and part of that will link to the rest of the GCC, via rail corridors that been safeguarded for 50 years by the Arab Rail Union, until a rail project is politically and financially viable.

Infrastructure and economy

Governments have to implement a certain amount of spending to keep the economy ticking over and at the same time you can get great value for money. This is a model that is used in other countries in the Far East. The developers have taken advantage of economic downturns, countries where they have had to invest they have done so in airports, roads, metros and they have seen good value for money. This bridges the gap until the private sector can reengage in real estate. You make plans, but also think about being flexible in how to make that happen.

“I don’t think the region can finance all its projects internally and it has to look to finding capital from world markets. It’s a paradigm shift and more legislation will be needed to make the market more open and attractive for foreign investment”

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COVER STORY | Infrastructure ABC

COVER STORY

XXXXXXXX COVER STORY | XXXXXXXXXX | Infrastructure ABC

COVER STORY In associate with Emirates Tenders, The Big Project brings you the top five most expensive infrastructure projects in the region. Log on to The Big Project website to see the full top 20 list of the most expensive new and active infrastructure projects in the region

Al-Raha Beach Complex Development Project $150,000,000,000 Description Carrying out development of Al-Raha beach complex, to be built on reclaimed land comprising numerous towers and low-rise developments on the waterfront and house about 120,000 people. Stats Population: 120,000 people Built-up area: 12 million square metres Dredging: 8 kilometres within an area of 450 hectares, involving an estimated 40 million cubic metres of reclamation works arranged on a phased sub-division basis. The Projects Director: ALDAR Properties PJSC

Jumeirah Gardens Mixed-use Development Project $95,000,000,000 Description Development of Jumeirah Gardens mixed-use scheme comprising seven distinct areas, including offices, residential buildings, retail, leisure and entertainment areas, and hotels. Stats Project area: 110 million square feet Phase 1: commenced Consultant: Skidmore, Owings & Merrill Project manager: Hill

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Oil & Gas Export Pipeline Rehab. Project $50,000,000,000

Description Build-Operate-Transfer (BOT) contract to carry out rehabilitation of oil and gas export pipelines. Stats Tenders: Three phases Phase 1 will include a 1.75 million barrel-a-day pipeline from Basra to Haditha The network will then split, with one line going westwards to the Syrian border and the other joining the northern export pipeline from Kirkuk to Ceyhan in Turkey. Client is also planning to rehabilitate the 1.6 million b/d northern Kirkuk-Ceyhan pipeline, replacing the corroded sections of the 30-inch line. More than 7,000 kilometres of pipelines will be required.

Nuclear Power Plant Project-1 $ 40,000,000,000 Description Engineering, procurement and construction (EPC) contract to build a nuclear power plant with capacity of 5,600 MW. Stats Four reactors, each with capacity of 1,400 MW. First reactor producing power in 2017 Three other reactors to come on line at 18-24-month intervals.

Yas Island Development Project $ 40,000,000,000 Description Development of Yas Island featuring a Ferrari theme park, a motor sports race track and three golf courses, including a water park, a shopping centre, hotels, two marinas, polo clubs and residential buildings. Stats Developed on natural island, northeast of Al-Raha Beach development Project area of 25 square kilometres Second phase, due for completion 2014, is the development of north of the island The scheme will feature a Ferrari theme park, a grand prix circuit and three golf courses., water park, shopping centre, hotels, two marinas, polo clubs and residential buildings. Construction contracts for a 10-lane highway are being finalised

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COVER STORY | Infrastructure ABC

COVER STORY

CASE STUDY | Kanoo “It has been happening with car dealers, but it has never happened with machinery dealers before”

Kanoo general manager Bob Jennings.

Market equilibrium The Big Project catches up with Kanoo general manager Bob Jennings, who warns that a dual boom may not be the good news it sounds like

“The industry will invariably end up in the same situation we ended up in between 2004 and 2006”

ot all news is good news. With anticipation growing over the huge project opportunities in Saudi Arabia, Qatar and even Abu Dhabi, the region’s suppliers, dealers, manufacturers, consultants and contractors are understandably preparing for an upturn. However one man is erring on the side of caution, warning that the combination of global credit conditions and an influx of far eastern firms could cap many of the opportunities regionally based companies are counting on across markets such as Saudi Arabia, Qatar, Abu Dhabi and Kuwait. “We [the industry] will eventually come to a situation where we are not able to supply the demand, because we will not be in a position to take the risk to put a lot of money into a market, just in case things don’t go the way we plan,” Kanoo GM Bob Jennings tells The Big Project. “We are ordering more stock, but manufacturers are coming to a point where their [supply]

chains are becoming stretched and delivery times are extending. The industry will invariably end up in the same situation we ended up in between 2004 and 2006,” he added, continuing: “China will come in and start to fill the market gaps because we will not be able to manage it.” Eighteen years in the region has given Jennings considerable insight to the peaks and troughs every economy and market experiences. Arriving in 1994, he says it was a further decade before he began to realise the local market was “for real”, marked by the start of construction on Dubai Marina and its surrounding neighbourhoods. It was during this boom the eastern markets gained their first foothold in the UAE, but issues surrounding the quality of their products capped their success and damaged their reputation. Returning now with higher quality machines and a “long term mindset”, Jennings predicts this time will be different. “The Chinese will come out with a better reputation and they will

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CASE STUDY | Kanoo

“You have to be careful, because you can never really judge how it might go. The global economy is a problem”

get an even bigger foothold in the region than the last time round. That will be at the expense of the western and Japanese companies and it will be difficult for them to recover,” he predicts. It’s not just construction; the oil and gas industries have benefitted from significant increases in the number – and quality – of eastern manufacturers and suppliers, with ChinaUAE trade posting a 35% YOY growth over the last decade, according to figures published by Messe Frankfurt. That said, not every eastern market is able to compete with the company.

Uptime

Currently, Jennings is based in Saudi Arabia where Kanoo has driven its market share for Grove branded rough terrain machines alone from “about 11% in 2010 to over 52% in 2011”. Influenced as much by economic conditions as any other factor, Jennings reports currency and supply issues experienced by Japanese competitors paved the way for Kanoo to effectively price its products, and stock more of them, to reduce that price further and ultimately drive sales. “Knowing that we have more products in stock, means we are able to compete. “Also we have taken quite a lot of business from competitors due to our service capability. We have

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ability to remotely support customers is a large part of that, particularly if a business wants Mecca and Madinah, Jizan Economic City Port, Riyadh Dry Port and Princess Noura University reeled off on their project portfolio. It’s such business sustainability that offers protection in the face of continuing threats from global economics and politics, not to mention the uncertainty of how much the region’s biggest brands will cash in on its next biggest markets.

“There will definitely be a demand there that will have to go ahead, irrespective of what’s going on elsewhere” a lot of customers now insisting they would not go back to our competitors because of the level of service they have gained from us,” he adds. Included in that service is a machine-tomachine remote monitoring system, that flags critical issues with machinery and mitigates the risk of downtime. “It has been happening with car dealers, but it has never happened with machinery dealers before,” Jennings explains. “Typically you’ll find downtime is about 30% on average per year. On a sizable operation, that could mean a significant amount of money. But we can come in, particularly with our remote monitoring system, and take that to 95% up time,” he claims. Increasing market share today is achieved on service, not equipment, Jennings explains and the

Absolute certainty?

“The [market] dynamics are completely different now. What drove Dubai was the speculation, but Saudi Arabia is being driven by an acceptance that they have to spend on infrastructure; it’s inherent money,” he observes. For Jennings, therein lies a large part of the problem. Calling it a “tale of two cities” the collapse in Dubai is now being replaced with dual booms; firstly in a massive country that requires infrastructure build up from the most basic elements to entire civil networks, and secondly in a country that has a non-negotiable deadline and the eyes of the world on it. But the crux of his caution is thus: “We are preparing for a joint boom in Qatar and Saudi Arabia, but you have to be careful, because you can never really judge how it might go. The global economy is a problem, growth in China is dropping, demand for oil could also start to drop as well. If that price comes down it could also affect Saudi Arabia’s appetite to spend money.” “The only certain thing is Qatar and the build up for the World Cup. There will definitely be a demand there that will have to go ahead, irrespective of what’s going on elsewhere,” he adds.

EVENT INSIDER | INTERMAT PARIS

INTERMAT Paris: Middle East Day 46 | www.thebigprojectme.com

eld from April 16-19 at Paris Nord Villapinte, Intermat Paris hosted 1350 exhibitors and welcomed 145,082 trade visitors. The focus was undoubtedly international, with 67% of exhibitors and more than 34% of visitors having travelled in from abroad. Data released since the show, demonstrated prominence from Chinese suppliers, who occupied a combined exhibition space of 26,250m². For one day the focus was firmly fixed on the Middle East, when on Wednesday April 18 UAE ambassador to France, His Excellency Mohamed Meer Abdalla Al Raeesi, visited the exhibition with members of Abu Dhabi’s Department of Economic Development for ‘Middle East Day’, ahead of the second Intermat Middle East, to be held in Abu Dhabi October 8 – 12 2012. Also helping to promote Intermat Middle East, members of Abu Dhabi Department of Economic Development, exhibitors and show organisers met with The Big Project for a panel discussion on industry trends and opportunities in the Middle East. The full discussion begins on page 48. Other high profile visitors included the heads of international machinery and equipment manufacturers, who combined represented 80% of the global market. “The total value of the equipment on offer over the six days was estimated at $2 billion, some 5% of which translated into orders equivalent to approximately $100 million,” said Exhibition Manager Maryvonne Lanoë.

EVENT INSIDER | INTERMAT PARIS

Intermat Innovation Award winners Gold award

- Arcure, Blaxtair, Components, equipment and tooling - Mills, Tourechaf, Construction equipment - R. Brunone, Convoyeur SB SPAR, Civil engineering, Mining and Quarrying equipment - Volvo Construction Equipment, A40F Full Suspension OBW, Civil engineering, Mining and Quarrying equipment

Environment award - Imer Group, Carry 105 Electrique, Handling Equipment and Services

Silver award

- Fayat SA, Swift, Civil engineering, Mining and Quarrying equipment - Klac Industrie, SA, Klac+, Components, equipment and tooling - Vollert Anlagenbau GMBH, ISO-MATIC, Construction equipment

Bronze award

- BLastac BV, Camion Multifunctions Blastrac BMR85D, Construction equipment - Horton Europe GMBH & Co KG, WindMaster Revolution, Components, equipment and tooling

Address from His Excellency Mohamed Meer Abdalla Al Raeesi, UAE ambassador to France (centre)

“I am very much delighted to be here and to have this opportunity to promote Abu Dhabi, its business opportunities and the scale of construction in the Emirate here. “This is a great opportunity for us and again I would like to thank you on behalf of the Department of Economic Development. “Hopefully this will be a preparation for Intermat Abu Dhabi next October and I hope we can add the expected value.”

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Race to Abu Dhabi Ahead of the second INTERMAT Middle East in October, Melanie Mingas travelled to the showâ&#x20AC;&#x2122;s Paris edition to hear from organisers, exhibitors and Abu Dhabi Department of Economic Development about the need for a dedicated PMV expo in the region Observing the global machinery market of late, what have been the most significant developments? Gaby Rhayem: I think there are positive signs, especially in the Middle East because of the opportunity in Saudi Arabia and the UAE. We at Doosan are confident the second half of this year will see strong investment and projects in Abu Dhabi. We believe there is big potential in the UAE and we are very positive.

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Veronique Arnal: The last edition of Intermat Paris was in 2009, so we have been preparing this show for three years. 2009 was the year of the crisis in our sector and we have seen that over the last three years our exhibitors have recovered in their optimism and business growth. We can feel now at the show from the machines, materials and products displayed that it is exciting for our market. This year we have more international exhibitors, and visitors over the last two days have come to the show with actual projects; thatâ&#x20AC;&#x2122;s concrete motivation to meet with the suppliers.

375,000 sqm exhibition FLoor space

What’s quite interesting is the second tier of contractors we are talking to. I expect these are the people dealers want to be doing business with and 65% of these guys don’t travel to international shows. With Intermat Abu Dhabi we are looking to create a show in a market that is seeing a certain amount of uplift. In Saudi Arabia, Qatar, Bahrain to an extent, and Abu Dhabi, projects are very much coming online and we are looking to create a show for major infrastructure projects, rather than a built environment show.

The panel Chris Hudson Intermat Middle East, UAE Yousef Barzak contractors’ classification specialist, Department of Economic Development, Abu Dhabi Ahmed Abdulrahman Alburkani Manager of Contractors consultants

Chris Hudson: I think Europe and the Middle East are different markets; clearly the European market is perhaps more established and we can only speak about it from an exhibition organisers’ perspective, so our barometer is what our buyers are telling us and to echo what Gaby has said there seems to be a certain amount of optimism in the region and people are certainly pushing forward with projects; we are seeing more projects being green lighted.

We conduct surveys with our visitors and the results are certainly positive. From an organiser’s perspective they very much want the opportunity to have their own version of Intermat in the Middle East. We had some independent surveys conducted recently that concluded 85% of respondents want an edition of Intermat in their own market. That is key in terms of travel time and ability to be out of the office, so having a local show helps.

Classifications and Engineers Registration office, DED Undersecretary Sector Veronique Arnal sales director, Intermat Paris Gaby Rhayem regional director Middle East, Doosan Infracore Construction Equipment

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ROUNDTABLE | INTERMAT

“This year we have more international exhibitors, and visitors over the last two days have come to the show with actual projects; that’s concrete motivation to meet with the suppliers”

ROUNDTABLE XXXXXXXX || INTERMAT XXXXXXXXXX

LEFT: Chris Hudson.

“We had some independent surveys conducted recently that concluded 85% of respondents want an edition of Intermat in their own market. That is key in terms of travel time and ability to be out of the office”

In light of Abu Dhabi’s 2030 Vision, what are the specific projects increasing demand for machinery? Yousef Barzak: When Abu Dhabi announced Vision 2030, it was decided to develop the surrounding islands and in order to achieve the vision there will be a lot of construction in infrastructure in preparation for the bigger vision. I believe we will need a lot of machinery, equipment, contracting companies and consultants to realise this. Ahmed Abdulrahman Alburkani: The Emirate of Abu Dhabi occupies 87% of the whole United Arab Emirates, so you can imagine the scale of development, particularly in the Western Region. This area is the largest of three regions and 90% of this area needs to be developed, so you can imagine the need for construction equipment. GR: I believe the Middle East deserves a show like Intermat; we see similar events in France, Germany, Italy and the US. When we look to the Middle East and see that more than 40% of the world’s biggest projects are in the region, we as suppliers know Intermat should be here. As a manufacturer we also need to invest and we need to have our dealers to make the show happen and to make the show successful. It’s strange that a region like the Middle East, where there is the world’s highest building and dealers are selling the most machines, doesn’t have a dedicated construction machinery show. We need to forget the past, build something strong and work on the future.

What are the main challenges for European companies looking to establish themselves in the Middle East? GR: The fact government is providing a facility for companies to establish head offices and solution centres here is like a dream. A lot of facilities and support centres are based in Abu

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LEFT:xxxxxxxxxxx

Dhabi and local authorities are helping companies in establishing those bases there. For us with a branch office, we have a lot of support from the local government. YB: There are several entities in Abu Dhabi with a core business remit to attract investors, such as Abu Dhabi Chamber of Commerce and Industry, Zonescorp and also the Abu Dhabi

“We held our first Intermat Middle East last year and we had some European exhibitors who succeeded in finding reliable partners in the Middle East”

Gulf Projects

FIFA World Cup 2022 (Qatar) $91 billion Madinat Al Hareer (Kuwait) $95 billion Sundair City development (KSA) $40 billion Development of train system (Qatar) $22.8 billion

Large Abu Dhabi Projects Saadiyat Island $27 billion Etihad Rail $11 billion Four electric power stations $1.5 billion Khalifa Port$7.2 billion

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ROUNDTABLE XXXXXXXX || INTERMAT XXXXXXXXXX

LEFT: Veronique Arnal

Economic Council. All these entities are to attract investors and make things easier and promote the choices of conducting business in Abu Dhabi or in freezones across the Emirate VA: We held our first Intermat Middle East last year and we had some European exhibitors who succeeded in finding reliable partners in the Middle East. We also have two examples of companies who created their own office in Abu Dhabi. So Intermat Middle East can also help to boost trade links between the Middle East and Europe. YB: When you open a branch in Abu Dhabi you are in the centre of a hub that includes Qatar, Dubai, Kuwait, there is a good advantage

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“Those companies who were here for the first edition are now back for the second, and they wouldn’t do that without seeing a return”

67% of exhibitors were international, representing 32 countries to being there and you can find a lot of opportunities. AA: Part of the aim for the 2030 vision of Abu Dhabi as set out by His Highness, is for the government to be one of the top five governments in the world. One of the main elements will be to ease business processes, and also to enhance education, health and investment in a range of everyday activities.

international buyers want an Intermat Middle East event

LEFT: Ahmed Abdulrahmaan Al Burkani.

What are the main opportunities and which projects should new companies focus on supplying to? AA: Whether a project is buildings or infrastructure, no matter what size it will always need the latest equipment in that field in order to be built. Abu Dhabi is expected to see a boom in projects until 2030 and beyond, and this will grow the machinery market. YB: Naming projects, I would say the primary ones are Masdar City, Kizad, Yas Island, Abu Dhabi Airport, Saadiyat Island, Sowwah Island. There are many projects to be mentioned.

There are already many companies established in the UAE who are waiting for these projects to turn into business for them, how strong is the market and how will it cope with the increased competition? AA: The number of current and future projects will accommodate all these competitors and I am sure the market will have a chance to give each company its share.

CH: There are many contractors already based in the UAE tackling the major projects and buying machinery and also many of those are managing projects in other Gulf countries as the likes of Arabtec and Al Jaber are taking on major projects across the whole region. I expect the machinery market is about the massive infrastructure projects but clearly in the UAE there are the mass rail, metro, port and road projects, so they can be serviced by existing contractors but there are many new companies there to meet the demand of the projects coming online and they will all be buying machinery. I believe there are around US$4 trillion of projects still live round the GCC and I sense that poses great opportunity for the manufacturers, distributors, existing and new contractors and we will see growth as a result of all that coming online. GR: Abu Dhabi is the place to be, yes it was a little conservative before but I believe the government is now more open and actively investing. There is no doubt Abu Dhabi is a future market in the region.

65% of those

buyers do not go outside the region to source equipment

77% wanted to see new products 55% want to meet with existing suppliers

67% wanted to meet with new suppliers

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ROUNDTABLE | INTERMAT

85% of

ROUNDTABLE XXXXXXXX || INTERMAT XXXXXXXXXX

LEFT: Yousef Barzak.

30,000sqm demonstration area

How can companies find the right partners in a new foreign market? YB: To be honest we are talking about the knowledge economy and that is what Abu Dhabi is aiming for and DED does have investor services to guide and introduce those investors to other government agencies and other investors, to help them find solid ground to work on. There is a big interest in such an approach.

How have local Middle East demand patterns fluctuated over recent times and how much of an indicator is this of the wider market?

Photographs by Cris Mejorada

GR: At Doosan, we think 2012 will be a very good year in terms of sales and growth. There has been steady growth since 2010 and there are good signs now. AA: Part of Abu Dhabi’s policy is to take things gradually, we do not come up with ideas in a matter of days; we plan, think and do. VA: After each show we try to assess the amount of business conducted, but our exhibitors aren’t so willing to share the information. What we do know is that here in the European market we have recovered from 2007 and compared to the last edition of Intermat two years

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ago, we can say there has been about a 40% improvement on 2009. We all feel the level of exhibitors and visitors has recovered and we feel positive. CH: In the Middle East this year we will see a show that has doubled in size and will attract double the amount of buyers. The important thing with us for Intermat Middle East is that we are in partnership with the industry, and while it is a cliché to state, this is an industry show. We have an unofficial advisory board of dealers, manufacturers and distributors who are steering the ship, so to speak. So perhaps unlike other events we are very much industry-led. Those companies who were here for the first edition are now back for the second, and they wouldn’t do that without seeing a return. So we continue to deliver a show that delivers for exhibitors and visitors.

CH: Clearly events like this are there to assist companies gaining access to the market; and the attendance of DED and exhibitors at this discussion demonstrates that today. As an organiser, that support is something that we establish before, so we can match make with particular buyers. We did a recent survey amongst 150 key buyers across the whole region and 80% want to source new products. Sometimes the best products will come from the major players, but they can also come from the small businesses as well, so if we can assist those businesses we would be delighted to do so. GR: Normally the small companies are asking for support from embassies but they are not very well introduced, there needs to be a funding opportunity presented to the outbound country coming into the market. I believe our plan for Intermat Abu Dhabi is to show the force of the brand and to show customers our new products and parts. We need to be closer to the end users so shows are a unique opportunity.

SUPPLIER | NEWS

Supplier news A round-up of the latest news and announcements from industry suppliers at INTERMAT Paris

JCB

Mitas

Wolffkran/ CECE

The Brazilian Federal Government has bought more than 1000 machines from JCB to equip municipalities across the South American country. The US$ 97 million contract is one of the largest single tenders in the company’s history and also includes training. The company will supply 1016, 3C backhoe loaders - all of which will be manufactured at its factory in Sao Paulo - by the end of June. The first 114 machines have already been delivered, and the entire fleet will be used to improve Brazil’s roads. JCB 3C backhoe loaders are 6.5 tonne class machines, powered by 63.4 kW diesel engines. Standard models provide a backhoe with a 3.2 m load height and 4.4 m dig depth, and a 0.96 m3 bucket capacity loader that can reach to 810 mm. Considered to be one of the world’s largest construction markets, the Brazilian economy is forecast to grow 4% this year, however the country is still building stadiums ahead of the 2014 World Cup and is now, causing concern for FIFA. The Mato Grosso do Sul State Road Transport Project is financed with a $300 million loan from the World Bank. It will upgrade approximately 700km of road and see construction of a further 450km of state roads, with work predominantly based in Mato Grosso. A statement from the company read: “The machines will be deployed to improve and open up thousands of miles of secondary roads in communities heavily dependent on farming, ensuring food gets to its final market much quicker.”

Mitas has extended its ERL/ERD tyre range by 30% with the introduction of a new set of earth moving tires. Manufactured in the Czech Republic, Europe, the new tyres are designed for loader and grader machinery. The ERD tyres are for transport vehicles, including wheel loaders, dozers and graders, dumpers (including articulated dumpers ) and scrapers. “Each off-road surface requires its own specific tread design and functionality,” said Mitas product manager, Petr Hala. “Mitas now makes specific tyres for machines operating in these demanding conditions, including gravel and rock quarries. The customer will appreciate the cut resistance of the ERL-50,” Hala added. New features on the tyres include larger surface area – to improve longevity and performance – and deeper tread for rocky terrain. The entire ERL/ERD line is radial with steel-enforced carcass and steel breakers. “Customers ask for resistance to damage and added value in the tyre life through retreading in quarry tyres,” said Andrew Mabin, Mitas’ sales and marketing director. “Mitas developed the FLR (forklift radial) and SC (straddle carrier) tyres based on steel radial technology, which allows for the handling of extremely heavy loads. “The SC-01 is made stable to minimise lateral movement of the straddle carrier where the driver sits at the very top of the five-storey vehicle. This translates to ride comfort,” Mabin added.

Figures quoted at Intermat Paris in April showed positive trends across Europe in the heavy machinery rental market, based on an “ongoing financially uncertain situation”. Speaking during the show, Dr Peter Schiefer, CEO of Wolffkran and Chairman of CECE Section III (Committee for European Construction Equipment), also observed that both sales and rentals are on the rise in Europe, yet the industry is still facing “fierce price pressure” in the market place. In addition, he also observed construction companies do not wish to make large investments in equipment themselves, despite current interest rates making the investment in tower cranes for users “attractive” at this time. “Following two very tough years for the construction business in the aftermath of the economic crisis in 2008, the market has shown clear signs of recovery in 2011, also positively affecting the tower crane industry,” Dr Shiefer commented. “Both the sales and rental of tower cranes have picked up and the trend is continuing in 2012. However, the situation is still quite difficult as we are currently facing a fierce price pressure. I do not believe in protecting the market by artificially keeping out low quality competition. We have to ensure that all cranes comply with the relevant legislation. If they do not, then they should not be allowed in the market” said Dr. Schiefer. CECE recently published a booklet to help identify non-compliant cranes and promote safety regulations.

Massive single tender awarded

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New earthmoving tyres introduced

Rental trends increasing amid price pressures

6% growth rate of the European construction market in 2012

Volvo CE

Liebherr

Bell Equipment

Volvo’s A40F, a full suspension articulated hauler with on board weighting system (OBW), has been awarded the top accolade out of 80 nominations at Intermat’s Innovation Awards, held during the 2012 Paris show. Featuring active hydraulic suspension, six full hydraulic suspension cylinders, six nitrogen/oil accumulators, six sensor positions and a dedicated electronic system for real time suspension management, it is 95% recyclable. Adhering to European legislation 2002/44/CE and 2005-746 (JO 04/07/2005), hydraulic technology reduces vibrations for the driver by 30% and automatically limits speed if overloaded. The engine complies with Interim Tier 4/Stage III B exhaust emission regulations and can optionally run on biodegradable hydraulic oil. The automatic OBW logs all transported loads and displays data to the operator on a screen; the information can also be accessed remotely via Care Track, Volvo’s telematic system. This includes data on the amount of material transported and the fuel consumed by the vehicle. “The potential of the onboard weighing system in unlocking the secret of hauler productivity shouldn’t be underestimated,” commented Anders Larsson, head of Volvo CE Technology. The company will launch 60 new products in 2012, which combined with the 55 new products in 2011, means the last two years has seen the most fundamental overhaul of the company’s product portfolio in its history.

Liebherr director of sales and services, Holger Amann, has now confirmed the international machinery and equipment manufacturer secured sales worth €1million during the inaugural Intermat Middle East, held in Abu Dhabi last year. The sales were made on two mobile tower crane orders for new clients, based in Abu Dhabi and Oman. Neither client has been identified. The news came as Liebherr confirmed its participation in the second Intermat Middle East, to be held in October, where its most popular machines will be showcased. “This year we are going to exhibit a 100 tonne telescopic crawler crane and a 5-axle mobile crane, since those are the most popular types in the region,” Amann stated. “Both models are not new to the market, but have a very good reputation. We will further exhibit three types of earthmoving equipment and maybe a mobile tower crane,” he added. Inspired by environmental and regulatory drives across the region, Amann says the demand for efficient machinery is increasing, further aiding recovery and complementing the positive effects the UAE felt from the Arab Spring. “Compared to 2009 and 2010, the economy started to recover at the end of 2011 and 2012 is very likely to be a record year for our Middle East operation,” he commented. The most significant projects investments have included: US$28bn in the UAE’s Saadiyat Island; US$11bn in the UAE-wide Etihad Rail; US$91bn towards 2022 FIFA World Cup projects in Qatar; and US$95 bn in Madinat al Hareer, Kuwait.

A new series of ADT machines has been unveiled by South African firm Bell Equipment during Intermat; featuring a wider hood and “more imposing style” the range will go into production in 2013. “Groundbreaking” innovations include standard onboard weighing, keyless ignition, ‘HillAssist’, ‘Bin Tip Prevention’, auto park application and standard Turbo spin protection. Machines for the European market will also have fuel efficiency measures built in. “We believe that our D-series has successfully met the challenges of the world’s job sites and has many strengths and features across the range that our customers would like to see carried forward in our product advancement,” said company chief executive, Gary Bell. “Therefore we have adopted an evolutionary approach to the E-series, to build on the legacy of the D-series generation and our decades of experience in design and manufacture, rather than a revolutionary clean-sheet design. “We’ve stuck to our design principles of delivering weight optimised, high production trucks with superior tractive effort but looked at ways of doing things smarter to provide customers with an even greater competitive advantage in their businesses,” he said. “In our design brief we addressed the ease of building the E-series so that we could look to increase our already high levels of quality into the way we manufacture. By further improving on that we have been able to build an even more reliable and durable truck,” he added. In the name, ‘E’ stands for Evolutionary.

Gold Innovation award presented

Sales confirmed at Intermat

New E-Series unveiled

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CAREER LADDER SUPPLIER | NEWS | Coryn Hellewell

“I do not believe in protecting the market by artificially keeping out low quality competition. We have to ensure that all cranes comply with the relevant legislation. If they do not, then they should not be allowed in the market”

To advertise please contact: LIAM WILLIAMS Associate publisher Email: liam@cpidubai.com Tel: +971 4 440 9158

RHIANNON DOWNIE Business Development Director Email: rhiannon@cpidubai.com Tel: +971 4 440 9156

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www.buildgreen.ae

News

SUPPLIER PROFILE | GENESIS MANAZEL

Time for change Barely two years old, Manazil Steel Framing has already supplied its steel framing to 45 projects in the GCC. Marketed as the “modern method of construction” CEO Maged Mostafa says the success is an indication of the need to change how the industry builds

“There is confidence in the market and more people are using our technology to reap the benefits of modern methods of construction”

recise, waste free and rapid. They’re not the first three words that spring to mind when describing construction in the Middle East but if you speak to Manazil Steel Framing CEO Maged Mostafa, that’s all about to change. “People are more aware today and therefore more demanding. Consumer awareness is on the rise, people are also conscious about money, and because they are more careful this will naturally filter out those who are not as efficient or competitive,” Mostafa observes. “The trend is for more emphasis on quality and cost. For us we can easily compete in this environment. This is definitely the way the industry is going in the future. Why would you keep building methods the same way as your ancestors? It hasn’t changed for thousands of years, it doesn’t make sense,” he adds. The competitive edge of Manazil’s products are embodied in a number of elements: steel framing is lightweight, thus reducing the depth of foundations and eradicating the concrete structure; steel in itself is

the strongest material on earth and highly recyclable; each part is pre-cut to the precise size using bespoke software and production methods to arrive on site, clearly labelled and ready to assemble. “There is confidence in the market and more people are using our technology to reap the benefits of modern methods of construction. People are opening up their eyes to having houses that are more green and faster to build,” Mostafa says. This year Manazil has launched the next step in its portfolio the cladding panel Ecomag, designed to extend the carbon, time and waste savings of a frame that can be used for inner and outer walls, partitions, roofing, tile backers, soffits, cladding and flooring. “The core of a building isn’t just steel, it needs to be covered. So we thought, why not look into options to provide that? The cladding material can range from plywood to Gypsum board to fibre cement board to other kinds of man made material, but we found the most eco-friendly and best products in terms of physi-

www.thebigprojectme.com | 59

SUPPLIER PROFILE | GENESIS MANAZEL

60%

30%

potential time saving using Ecomag, compared to brick and cement construction

potential saving on construction costs

ABOVE: Maged Mostafa, Manazil CEO.

cal characteristics was the magnesium sideboard,” Mostafa explains. Ecomag’s prime component, magnesium, gives the panels a compressive strength of 3000 PSI; they do not emit harmful gasses and each panel is 100% recyclable. Other components include recycled sawdust, cloth and cardboard. “This magnesium was the best option for us and we did our research and analysis and formula and we have been researching this and preparing for it. We have a product that is much more superior to fibre or gypsum board. It’s more resistant to water and of course any other environmental influences,” he adds, sharing that production will begin “in a few months”. “Walls made from these panels save up to 30% on construction cost and up to 60% of construction time as compared with contemporary cement and brick construction,” Mostafa claims. “As far as energy efficiency is concerned walls made of Ecomag save up to 35% on electricity bills, as this material requires less heating and cooling to maintain temperatures due to its thermal insulation properties,” he continues.

Green constructor

Progressing from start up to global since the early 1990s, Manazil Steel Framing may have less than two years experience in the region, but it has already supplied its steel framing to dozens of projects, including Masdar and Saadiyat Island , Abu Dhabi. “Of course the markets have witnessed a very tough time in the last few years, but I see signs from the number of enquiries the nature of them

60 | www.thebigprojectme.com

TESTS

RESULTS

Compressive Strength

3,000 PSI

Impact Resistance

> 6 kJ/m2

Tensile Strength

> 5.5 Mpa

Density

1000 Kg/m3

Moisture Absorption

26% maximum saturation (slow absorption rate)

Moisture Content

10%

Thermal Conductivity

0.216 (W/m-K)

Modulus of elasticity

6045 N/mm2

Flexibility

20.1 N/mm2

Surface Alkalinity

10 Ph

Thermal Expansion Hot/Cold

0.08%

Expansion in Water

Less than < 0.03%

Combustibility / Fire Ratings

Non-combustible / 12mm exceeds 2 hr 25min fire rating

Dimensional tolerance

Thick 0.2mm / width 2mm / length 3mm / Sq. 3mm

Asbestos Analysis

No asbestos

in terms of seriousness and size. You can feel there is something boiling in the market,” Mostafa says. The next step will be to certify Ecomag through local civil defence and the Emirates Quality Brand programme, to verify both fire and insulation tests, then establish contacts in the disciplines of design and architecture, to see steel framing and Ecomag specified earlier in the project lifecycle. “Our system is totally flexible and we can work with any design. So we hope to work closely with the architect from very early on in the project to optimise our designs. That way we can know the openings for MEP, where the AC will be located, and we can strengthen these areas. “If we are not brought in at the very start we still have a chance to adjust because we have a very flexible software,” Mostafa adds, describing the scope of Manazil’s potential operations as “very exciting” “It is very important that our growth isn’t just

about steel or a specific technology. We consider ourselves to be technology leaders, we do not confine ourselves to one concept. We aim to have a fully integrated turnkey solution that is around green construction. We are not confining ourselves. We tell our team all the time that we are green constructors,” he concludes.

Ecomag fire ratings Up to 4 hours on a 15mm thickness 4 x 8’ panel. 3 hours on a 12mm thickness 4 x 8’ panel. Compliant with ASTM (American Society for Testing & Materials International) E84 / UL 723 / ULC S102 Tested to BS (British Standard) 476 Part 4 (NonCombustible) Tested to BS 476 part 7 (Class 1) & EN – ISO 1716, 1182 (Class A1) Tested to BS 476 Part 22 (Fire rating)

Special feature | lighting

Lighting the way From a ‘eureka’ moment in Northern Ireland to an award for ‘outstanding achievements in fire safety’, Lightstep’s intelligent evacuation system is about to change how safety is regulated in public buildings

n Wednesday May 23 Lightstep became global. Part of Jersey Group, the twoman start up from Ireland won its first award for ‘outstanding achievements in fire safety’, shedding light on the world of health and safety in a way that could change how buildings are designed and evacuated. “We have something that nobody else in the world has,” says executive chairman, Kieran Patterson. “You wonder how a little company from Northern Ireland achieves this, but we have and you feel very grateful for that,” he continues. Pattersom was mid-way through a project to build a three story house in his native Ireland, when he was refused approval to complete the project by an “over-zealous building expert”, who demanded that – according to legislation – an evacuation system or an extra staircase would be needed in order to obtain the building permit. “I started to research evacuation systems and there was nothing. There was the basic green man running and exit signs, but that was all,” Patterson recalls. With construction on hold, it was while reading a newspaper that inspiration struck. Patterson spent the next few days locked in his office but was soon ready to present the fruits of his labour to the local building department. Permission was granted and the house fin-

62 | www.thebigprojectme.com

“We had something special so I went off on a couple of trade missions to America and Europe and found nothing else like this in the market” ished, but for Patterson it was far from the end. “We had something special so I went off on a couple of trade missions to America and Europe and found nothing else like this in the market.” The system itself was simple, an illuminated path to safety, triggered by smoke and heat. As the idea grew, sensors were added to the intelligence system which alerted people trapped inside buildings to safe exit routes and refuge areas; diverting them from hazards, blocked exits and crowds. “The next step was to add the intelligence to it. When we discovered we had a method to re-route people around a building and away from a hazardous situation, it was like one of those ‘eureka’ moments. And here we are today in a hotel in Dubai, talking to The Big Project,” he continues.

Simple ideas

The system is now installed in a number of public and commercial buildings, with interested reported in vertical markets such as oil and gas, hotels, office accommodation and even underway rail systems. “The interest is coming from so many different vertical markets; Anywhere there is a crowd or it’s difficult to navigate people around a building or through difficult situations, Lightstep can help. “The reaction we have had here is just unbelievable; it’s literally just a whirlwind of success,” Patterson shares. While the primary benefit cited by Lightstep is the preservation of life, in business terms the product facilitates a shift in responsibility from building managers and owners to the system,

Special feature | lighting

and likewise reduces risk for insurers. “Your most valuable asset isn’t the building, but the people in it. If you lose your key individuals, you lose more than what the building is going to cost to rebuild. There is a greater focus on life safety now,” explains sales manager Gary Brown, who admits that he feels so unsafe in the majority of hotels that he refuses to stay in a room above the sixth floor. The idea is simple, triggered by heat, light and ‘human traffic’, sensors and lights are used to guide people away from danger and to a safe exit. Flashing lights can warn when and when not to leave the current location and will also guide away from hazards; even if the guided exit route is longer than it would normally be, the guarantee from Lightstep is that it will be completely safe. “It can react in milliseconds to a situation and that’s given us, a company from Northern Ireland, the chance to lead the way in the world of intelligent evacuation. If you search on the internet for intelligent evacuation systems we come up number one in the world,” Patterson adds. “The fact that the responsibility for looking after somebody’s life is handed to an intelligent system is one of those things that creates extra value for a building, its tenants, and its owners and managers.

“In terms of design, if this is considered from the desigvn phase, you could have three stairwells instead of four, for example” Patterson continues, while also adding that the product can be discretely installed and integrated into design, to be invisible unless activated.

Local partner

In the Middle East Lightstep operates under the Jersey Group, the silent umbrella over 10 companies with a combined turnover of $100million. Yet is the sole responsibility of Gary Brown to build the network upon which the majority of business will be done. “Because we’re setting a new global standard on building and life safety, this business is dependent on advocate sponsors and partners who believe in what you are doing. The model is that you usually start at the bottom and work your way to the top, but what we are actually finding is that we are going in at that most senior business leader and owner level,” Brown explains. Among the industries on Brown’s current list are cruise lines, many of whom are still feeling the effects of public distrust following the sinking of the Costa Concordia in Italy earlier this year. Admitting it would take the business infrastructure of a global business to tap every market segment, the aim for the moment is clear: improve legislation and make Lightstep a norm, rather than a gimmick.

“Because we’re setting a new global standard on building and life safety, this business is dependent on advocate sponsors and partners who believe in what you are doing” “In the next 12 months we will be focusing on pilot schemes and developing market share here in the GCC. “We do not want to lose the momentum that has now been gained with the traction we have had here. We want to build upon this success and achieve our overall objective which is to become number one in the world of intelligent fire safety technology,” Brown says, adding: “We’re focussed on getting those early adopters and with that continuing to happen it’s a message to life safety departments everywhere. “Everybody deserves the right to life and I want to know that if I’m checking into a hotel or travelling on a subway, I will be able to get out alive.”

www.thebigprojectme.com | 63

Qatar Project name Rabban Suites Project Project number OPR558-Q Territory Qatar Client Al Sarh Real Estate (Qatar) City Doha Country Qatar Phone (+974) 4487 7662 Email info@rabbangroup.com Web http://www.rabbangroup.com Description Construction of Rabban Suites comprising three basement floors, a ground floor, a mezzanine floor and (50) upper floors Status New Tender Remarks This tower will be located in the West Bay area of Qatar. The main construction contract is yet to be awarded. Local National Services & Contracting Company (NSCC) has been appointed to carry out the piling works. Local Arab Engineering Bureau is acting as the consultant. Main consultant Arab Engineering Bureau (Qatar) Foundations, enabling and piling contractor National Services & Contracting Company - NSCC (Qatar) Tender categories Prestige buildings, highrise towers

Project name Mondrian Doha Hotel Project Project number OPR557-Q Territory Qatar Client Al Hamla Holding (Qatar) City Doha Country Qatar Description Construction of Mondrian Doha Hotel comprising two basements, a ground floor, a podium and (25) upper floors. Period Status Current Project

Budget Remarks This hotel will be located in Lusail area of Qatar. Local SEG Qatar has been appointed as the Main contractor. Construction is already underway. Almost six floors have been completed. Local South West Architecture is acting as the design and supervision consultant. The hotel will be operated by Morgans Hotel Group Main consultant South West Architecture

(Qatar) Design consultant South West Architecture (Qatar) Main contractor Societe d Enterprise & de Gestion - SEG W.L.L (Qatar) Aluminium products supplier Alumco Qatar WLL (Qatar) Steel products supplier Blue Steel Factory W.L.L (Qatar) Foundations, enabline and piling contractor Navayuga Engineering Company W.L.L (Qatar) Tender categories Hotels, Prestige Buildings Tender products High-rise Towers, Hotel Construction

Project name Brooq Residential Tower Project Project number OPR559-Q Territory Qatar Client Private Investor (Qatar) Description Construction of Brooq Residential Tower comprising two basements, a ground floor, a mezzanine floor and (43) upper floors. Status Current Project

Budget $110,000,000 Remarks This tower will be located at Al-Dafna in Doha and cover a built-up area of 4,203 square metres. Local Atlantic Contracting Company has been appointed as the Main contractor. Design work is complete. Main consultant James Cubitt & Partners (Qatar) Design consultant Cico Consulting Architects & Engineers (Qatar) Financial consultant Doha Bank (Qatar) Main contractor Atlantic Contracting Company (Qatar) Tender categories Prestige Buildings Tender products High-rise Towers

Project name Smash Tennis Academy Construction Project Project number ZPR681-Q Territory Qatar Client Qatar Olympic Committee City Doha Address Postal/ ZIP 7494 Country Qatar Phone (+974) 494 4444 Fax(+974) 494 4788 Email qoc@olympic.qa Web http://www.qatarolympics.org

Description Construction of Smash Tennis Academy. Period 15/09/2013 Status Current Project

Budget $18,000,000 Remarks This project is in Qatar. Scope of work includes construction of (2 Nos.) indoor courts and (5 Nos.) open to sky courts. Local Hamad Bin Khalid Contracting Company has been awarded the main construction contract on this scheme. Local Hamad Bin Khalid Engineering Services LLC is the MEP contractor. Local EHAF Consulting Engineers is the Main consultant and the local Qatar Engineering & Associates is acting as the Design consultant. Main consultant EHAF Consulting Engineers (Qatar) Design consultant Qatar Engineering & Associates Main contractor Hamad Bin Khalid Contracting Company - HBK- (Qatar) MEP consultant Hamad Bin Khalid Engineering Services LLC - HBK- (Qatar) Tender categories Construction & Contracting, Leisure & Entertainment Tender products Sports Complexes

UAE Project name Residential Tower Construction Project Reem Island Project number MPP2635-U Territory Abu Dhabi Client Union National Bank (Abu Dhabi) Address UNB Bldg., Salam Street City Abu Dhabi Postal/ ZIP 3865 Country United Arab Emirates Phone (+971-2) 674 1600 Fax (+971-2) 678 6080 Web http://www.unb.co.ae Description Construction of a residential tower comprising a 3-level basement, 3-level podium and 25 floors of apartments Closing date June 10, 2012 Status New Tender Remarks This development will be built on Reem Island in Abu Dhabi. The total built-up area for the tower is about 47,400 square metres. It is understood that contractors have been given one more month to prepare bids for the main contract on this scheme and tender closing date has been extended from the previous

deadline of May 10, 2012. Main consultant Architectural Consulting Group - ACG (Abu Dhabi) Main architect Foster & Partners (Abu Dhabi) Project manager Northcroft Middle East (Abu Dhabi) Tender categories Prestige Buildings, Highrise Towers

Project name AlHabtoor Palace Hotel Project Project number MPP2570-U Territory Dubai Client Al Habtoor Group L.L.C. (Dubai) City Dubai Address Near Metropolitan Hotel, Sheikh Zayed Road Postal/ ZIP 25444 Country United Arab Emirates Phone (+971-4) 343 1111 Fax (+971-4) 343 1140 Email habtoor@emirates.net.ae Web http://www.habtoor.com Description Construction of 36-storey Al-Habtoor Palace Hotel comprising a 226-room luxury hotel, a fashion hotel with (424) rooms and a 996-room hotel, including a five-star spa, a sports academy, multiple theme restaurants, meeting facilities, a shopping arcade and a theatre showing productions from Broadway and Las Vegas. Period 2016 Status Current Project

Budget $1,300,000,000 Remarks This hotel will be located on Sheikh Zayed road in Dubai. It will be built on the property that is currently housing the Metropolitan Hotel, opposite Al Safa Park. The new hotel will comprise two basement levels, a ground floor, mezzanine floor and four-level podium with a 36-storey tower covering a total built-up area of about 372,000 square metres. Once completed, the complex will be one of the region's most luxurious hotel and entertainment developments. The landmark development will include: - 1,600 hotel rooms, spread between three hotels (lifestyle, luxury and main); - An iconic Las Vegas-style 'aqua' theatre; - A French provincial-inspired garden; and - Food and beverage venues. Local/Australian joint venture Habtoor Leighton Group (HLG) has been awarded a $515 million contract on this scheme. Under the agreement, HLG will be

ESTIMATING AND PROJECT CONTROL www.thebigprojectme.com | 65

MENA PROJECTS | TenderS

TenderS

Tenders provided by

MENA PROJECTS | TenderS

responsible for construction of the integrated hotel complex comprising a five-level podium, a 36-storey tower and a 25-storey tower within a total gross floor area of 350,000 square metres. Early works are likely to begin in June 2012. The development is scheduled for completion in second half of 2016. Design consultant atib & Alami Consolidated Engineering Company (Dubai) Main contractor Al Habtoor Leighton L.L.C (Dubai) Tender categories Hotels, Prestige Buildings Tender products High-rise Towers, Hotel Construction

Project name Dubai Modern Art Museum & Opera House District Project - Downtown Dubai Project number MPP2624-U Territory Dubai Client Emaar Properties PJSC (Dubai) City Dubai Address Emaar Business Park, Bldg. No. 3, Near Interchange No. 5, Shaikh Zayed Road Postal/ ZIP 9440 Country United Arab Emirates Phone (+971-4) 367 3333 Fax (+971-4) 367 3333 Email enquiry@emaar.co.ae Web http://www.emaar.com Description Construction of Dubai Modern Art Museum and Opera House District comprising a modern art museum, an opera house, cultural facilities, including two hotels, studios and leisure facilities. Status New Tender Remarks This project will be located next to Burj Khalifa development in Downtown Dubai area. The Cultural District is part of Dubai’s efforts to expand the cultural infrastructure. Tender categories Leisure & Entertainment, Hotels, Construction & Contracting Tender products Hotel Construction, Museums/Art Galleries

Project name Binary Tower Project - Business Bay Project number MPP1675-U Territory Dubai Client Omniyat Properties (Dubai) City Dubai Postal/ ZIP 30166 Country United Arab Emirates Phone (+971-4) 306 3300 Fax (+971-4) 306 3333 Email info@omniyat.com Web http://www.omniyat.com Description Construction of 25-storey Binary Tower offering commercial spaces. Period 2014 Status Current Project

Budget $149,000,000 Remarks This project will be developed at Business Bay in Dubai and offer commercial space with waterfront views of the Business Bay area. Office space will range from 600 square-feet to 1,935 square-feet. The civil contracting unit of Dubai-based Drake & Scull International (DSI) has been appointed as Main contractor to build the tower. The contract is worth $54.5 million. Project manager Hamilton Project Management (Dubai) Main contractor Drake & Scull International PJSC (Dubai) Tender categories Prestige Buildings Tender products High-rise Towers

Project name Residential Tower Project Al Reem Island Project number MPR1389-U Territory Abu Dhabi Client Aabar Properties L.L.C (Abu Dhabi) City Abu Dhabi Address Abu Dhabi Trade Centre (Abu Dhabi Mall), East Tower, 4th Floor Postal/ ZIP 37624 Country United Arab Emirates Phone (+971-2) 222 2233 Fax (+971-2) 222 2333 Email info@aabarproperties.com Web http://www.aabarproperties.com Description Construction of 23-storey residential tower comprising a total of 229 apartments, including two podium levels, three basement floors and a roof. Period 2014 Status Current Project

Budget $60,000,000 Remarks This tower will be located on Plot C14 of the Najmat Abu Dhabi section within Al Reem Island in Abu Dhabi. Local Arabtec Construction has been appointed as the Main contractor on this scheme. Contract covers construction, completion, testing, commissioning, hand over and maintenance of tower. Project completion is expected in the first quarter of 2014. Design consultant KEO International Consultants (Abu Dhabi) Project manager Confluence Project Management (Abu Dhabi) Main contractor Arabtec Construction L.L.C (Abu Dhabi) Tender categories Prestige Buildings Tender products High-rise Towers

Project name Residential Towers Project - Greens Development

Project number MPP2646-U Territory Dubai Client Emaar Properties PJSC (Dubai) City Dubai Address Emaar Business Park, Bldg. No. 3, Near Interchange No. 5, Shaikh Zayed Road Postal/ ZIP 9440 Country United Arab Emirates Phone (+971-4) 367 3333 Fax (+971-4) 367 3000 Email enquiry@emaar.co.ae Web http://www.emaar.com Description Construction of two mid-rise residential towers in Greens. Status New Tender Remarks The project, also known as Plots 30 and 31, will be located alongside Cultural District and on an island next to Westside in Dubai. It will contain modern art museum, an opera house and other cultural facilities. Client has received bids from companies for the main contract to build the project. Tender categories Construction & Contracting Tender products Residential Buildings

Tender products Airports Development & Management

Project name Military Maintenance Hangars Construction Project

Remarks This project will be located at Khalifa Industrial Zone of Abu Dhabi (Kizad). An agreement has been signed between the Client and Abu Dhabi Ports Company (Adpc) to develop the scheme. The smelter will produce high-grade silicon, which is used as an alloying agent to improve the strength of wrought aluminium alloys. Aluminium producers in the GCC currently import high-grade silicon from outside the region. Construction is expected to begin at the 316,413-sqaure metre site in 2013, with completion set for 2015. Main consultant Tender categories Industrial & Special Projects Tender products Mining & Metals

Project number MPP2642-U Territory Abu Dhabi Client Mubadala Development Company MDC (Abu Dhabi) City Abu Dhabi Address Al Muroor Road Postal/ ZIP 45005 Country United Arab Emirates Phone (+971-2) 413 0000 Fax (+971-2) 413 0001 Web http://www.mubadala.ae Description Construction of hangars that will be used for the repair of fixed-wing and rotary-wing aircraft for the military, together with other support buildings. Period Status New Tender

Budget $409,000,000 Remarks This project is in Abu Dhabi. UK’s Atkins and US-based Aecom are acting as the Main consultants. Three groups competing to build the Advanced Military Maintenance Repair Overhaul Centre (AMMROC) include: - Greece’s Aktor and Local/Lebanese Arabian Construction Company (ACC) - Local/UK’s Al-Futtaim Carillion and Local Al-Fara’a General Contracting - Germany’s M+W Group and Local Commodore Contracting Company. Main consultant WS Atkins & Partners Overseas (Abu Dhabi), AECOM Middle East (Abu Dhabi) Tender categories Airport, Construction & Contracting

ESTIMATING AND PROJECT CONTROL 66 | www.thebigprojectme.com

Project name Silicon Metal Smelter Construction Project Project number MPP2641-U Client Al-Braik Investments LLC (Dubai) City Dubai Address Postal/ ZIP 111469 Country United Arab Emirates Phone (+971-4) 430 9453 Fax (+971-4) 430 9454 Email info@albraik.ae Web http//:www.albraik.ae Description Construction of a silicon metal smelter. Period 2015 Status New Tender

Budget $178,000,000

Project name Infrastructure Works Contract - Khalifa Port & Industrial Zone Project number MPR1338-U Territory Abu Dhabi Client Abu Dhabi Ports Company (ADPC) City Abu Dhabi Address Mina Zayed Postal/ ZIP 422 Country United Arab Emirates Phone (+971-2) 673 0600 / 673 2600 / 673 0051 Fax (+971-2) 673 1023 / 697 5174 Email minazayd@emirates.net.ae Web http://www.portzayed.gov.ae Description Implementation of infrastructure works involving construction of one road bridge, two rail bridges and other general infrastructure such as culverts, storm water drainage, sewerage, substations and pumping stations at

Budget $132,000,000 Remarks This project is in Abu Dhabi. The agreement is for construction, fit-out, testing and commissioning of civil and structural works for Industrial Zone Area 'A'. The contract includes construction of a 4.5-kilometre, three-lane carriageway and a 1.5-kilometre, four-lane carriageway linking the onshore port to the industrial zone. It also features the construction of seven 11kV substations and pumping stations as well as the provision of sitewide utilities such as electriCity, telecom, potable water, combined wastewater and irrigation. Athens-based Consolidated Contractors Company (CCC) has received a letter of intent to carry out the main contract. It is understood that construction of culverts, storm water drainage, sewerage, substations and pumping stations has already been completed. Bridge construction work is in finishing stage. Installation of directions and signalling is ongoing. Project completion is expected within four months. Main contractor Consolidated Contractors International Co. Ltd. - CCC (Abu Dhabi) Project manager Bechtel (International) Company Limited (Abu Dhabi) Tender categories Public Transportation Projects, Power Plants & Alternative Energy, Water Works Sewerage & Drainage, Roads, Bridges & Infrastructure Tender products Bridges Construction, Infrastructure Works, Sewerage/Drainage Pipelines & Pumping Stations

Saudi Arabia Project name Midyan Gas Filed Development Project Project number MPP2647-SA Territory Saudi Arabia Client Saudi Arabian Oil Company (Saudi Aramco) City Al Khobar 31952 Address Saeed Tower, Dammam-Khobar Highway Postal/ ZIP 151 Country Saudi Arabia Phone (+966-3) 872 0115 / 810 6999 Fax (+966-3) 873 8190 Web http://www.saudiaramco.com Description Engineering, procurement and construction (EPC) contract for the development of non-associated gas from onshore Midyan field to produce 75 million cubic feet a day (cf/d) of gas and 4,500 barrels a day (b/d) of condensate for a

Period of (20) years. Period 2015 Status New Tender Remarks This project is in Western Province of Saudi Arabia. The output will be transported by pipeline to a power plant in the coastal town of Duba that is 135 kilometres to the Southwest of the field. Field has been developed to alleviate the burning of crude oil for power generation in the Northwest of the Kingdom during summer months. It has number of small non-associated gas fields that are also expected to be exploited to provide gas for power generation. US’ Mustang Engineering has been awarded the frontend engineering design (FEED) contract on this scheme. Mustang will carry out the design of upstream and processing facilities at the field, as well as pipeline to transport gas and condensate. It has been awarded the project under the terms of general engineering services plus (GES plus) contract that has been initiated by Client. FEED is now being carried out. EPC contracts will be tendered in the third quarter of 2012, with an award expected in November 2012. Contracts will be tendered on a lump-sum turnkey basis and the completion scheduled for 2015. FEED consultant Mustang-HDP (Saudi Arabia) Tender categories Gas Processing & Distribution, Oilfields & Refineries Tender products Gas Exploration & Production, Gas Processing & Separation

Project name MixedUse Development Project - Obhur District Project number MPP2633-SA Territory Saudi Arabia Client Rayadah Investment Company (Saudi Arabia) City Riyadh 11564 Postal/ ZIP 56850 Country Saudi Arabia Phone (+966-1) 205 9911 Fax (+966-1) 205 9922 Email info@raid.com.sa Web http://www.raid.com.sa Description Design and construction of a 2.4 million square metre mixed-use development in Obhur, which includes (240 Nos.) residential towers, (1,200 Nos.) villas, a five-star hotel, hospital, clinics, mosques, commercial district, schools and municipal buildings. Period Status New Tender Remarks This project is at Jeddah in Saudi Arabia. Client has received prequalification entries for an infrastructure package on the residential scheme and is planning to issue tender documents for the contract by July 2012. Local office of KEO International Consultants has been appointed as the Project manager on this development Project manager KEO International Consultants (Saudi Arabia)

Tender categories Construction & Contracting, Hotels, Medical & Healthcare Tender products Hospital Consumables, Hotel Construction, Mixed-use Developments

Project name Assila Towers Project Project number NPR002-SA Territory Saudi Arabia Client AMIAS Real Estate Company Ltd. (Saudi Arabia) City Jeddah Country Saudi Arabia Description Construction of 60-storey Assila Towers comprising a five-star hotel with (242) rooms and (104) serviced apartments. Status Current Project Remarks This project is in Jeddah and will cover a built-up area of 46,949 square metres. The tower will consist of two basement levels below ground. It is understood that the hotel will be managed and operated by Rocco Forte Hotels. Local construction company Al Saad General Contracting has been awarded the main construction contract on this scheme. Dubai-based construction firm Drake & Scull International (DSI) has been awarded an estimated $37 million turnkey contract to carry out the mechanical, electrical and plumbing (MEP) works. Main architect Mohammed Harasani Architects (Saudi Arabia) Design consultant Perkins & Will (USA) MEP contractor Drake & Scull International (Saudi Arabia) Main contractor Al Saad General Contracting (Saudi Arabia) Tender categories Prestige Buildings, Hotels Tender products High-rise Towers, Hotel Construction

Project name Kingdom Riyadh Land Mixed-use Development Project Project number OPR519-SA Territory Saudi Arabia Client Kingdom Holding Company (Saudi Arabia) City Riyadh 11321 Address 66th Floor, Kingdom Centre Postal/ ZIP 1 Country Saudi Arabia Phone (+966-1) 211 1111 Fax (+966-1) 211 1112 Email info@kingdom.net Web http://www.kingdom.net Description Development of a multipurpose scheme, focusing on tourism and housing involving construction of mixeduse residential and commercial buildings, hotels, retail spaces, parks, car parks, private leisure and equestrian clubs, and serviced bungalows. Status New Tender

Budget $7,000,000,000 Remarks This project will be developed on Riyadh - Dammam highway in the northeastern outskirts of Saudi Arabia and cover an area of 1,600 hectares. It is understood that the serviced bungalows are expected to be managed by Fairmont Hotels & Resorts. It is understood that the Client is set to commence work on this development. Local Omrania, an architectural and engineering consulting firm based in Saudi Arabia, has been awarded the master plan design and infrastructure contract. The contract also includes provisional sums for traffic and environmental studies. As part of their service, Omrania's contract will include the coordination and approval of all master planning elements, as well as liaison with local authorities. The consultancy will also supervise all the infrastructure work on site. Main consultant Omrania & Associates Architecture & Engg. Consultants (Saudi Arabia) Specialist consultant Booz Allen & Hamilton (USA) Master plan consultant Omrania & Associates Architecture & Engg. Consultants (Saudi Arabia) Tender categories Hotels, Construction & Contracting, Leisure & Entertainment Tender products Commercial Buildings, Hotel Construction, Mixed-use Developments, Residential Buildings, Retail Developments

Project name King Khalid International Airport Expansion Project Project number MPP2296-SA Territory Saudi Arabia Client General Authority of Civil Aviation GACA (Saudi Arabia) City Jeddah 21421 Address Bin Malek Street, Old Airport Area Postal/ ZIP 887 Country Saudi Arabia Phone (+966-2) 640 5000 Fax (+966-2) 640 1477 Email gaca-info@gaca.gov.sa Web http://www.gaca.gov.sa Description Carrying out expansion of King Khalid International Airport. Period 15/11/2013 Status New Tender Remarks This airport is located about 35 kilometres North of Riyadh in Saudi Arabia. Expansion will increase the airport’s annual capaCity to about 24 million passengers from the current 14 million. Scope of work involves construction of a new terminal, Terminal 5, including renovation of the existing Terminal 3 and Terminal 4, as well as adding (4) new concourses – A, B, C and D. Preliminary studies and design work for this development has been completed. Construction is expected to commence within six months and completed by

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MENA PROJECTS | TenderS

Khalifa Port & Industrial Zone (KPIZ). Period 15/10/2012 Status Current Project

MENA PROJECTS | TenderS

November 2013. Client has invited companies to submit bids for the project management consultancy (PMC) contract on this scheme. Firms have until June 16, 2012 to submit bids. Main consultant Airport, Construction & Contracting Tender categories Airports Development & Management

Project name Elastomers Project Project number MPP2565-SA Territory Saudi Arabia Client Saudi Basic Industries Corporation (SABIC) City Riyadh 11422 Address Postal/ ZIP 5101 Country Saudi Arabia Phone (+966-1) 225 8000/ 225 9701 Fax(+966-1) 225 9000 Email info@sabic.com Web http://www.sabic.com Description Engineering, Procurement and Construction (EPC) contract for the development of a new elastomers project, which will produce more than 400,000 tonnes of rubber, thermoplastic specialty polymer and carbon black. Period Status Current Project

(RFP) seeking a financial adviser. Banks are expected to be approached to fund this development in late 2012. Financial consultant HSBC Ltd. (Saudi Arabia) FEED consultant Jacobs Engineering (Saudi Arabia), Mitsui Engineering & Shipbuilding Arabia Ltd. (Saudi Arabia) Main contractor Jacobs DCSA (Saudi Arabia) Tender categories Industrial & Special Projects Tender products Chemical Plants, Plastics Manufacturing Plants

Iraq Project name Al-Risafa Sports Stadium Project Project number MPP2648-IQ Territory Iraq Client Ministry of Youth & Sports (Iraq) City Irbil, Kurdistan Country Iraq Phone Fax Email Web Description Construction of Al-Risafa sports stadium with capaCity of 30,000 seats. Period Status New Tender

Budget $2,000,000,000 Remarks This project is at Jubail in Saudi Arabia. It is being implemented in joint venture with US' ExxonMobil. A new company known as Kemya has been established for this purpose. US-based Jacobs Engineering, Japan's Mitsui Engineering & Shipbuilding and US-based Fluor have been awarded the front-end engineering and design (FEED) contracts. Bids have been submitted for the EPC contracts on this scheme. Contractors submitted bids for five packages on a lump-sum turnkey (LSTK) basis. The packages include: · Methyl Tertiary Butyl Ether (MTBE) · Utilities and off sites · Ethylene Propylene Diene Monomer (EPDM) · Polybutadiene Rubber (PBR) · Carbon Black Plant One package, a Halobutyl Rubber Plant (HRP), is being carried out by the US’ Jacobs Engineering on an engineering, procurement, construction and management (EPCM) basis due to intellectual property concerns by ExxonMobil. A decision regarding the awards is expected within (2) months. UK's HSBC has been appointed as the financial adviser. It is understood that no local banks received the request for proposals

Budget $100,000,000 Remarks This project is in Iraq and will be designed to comply with world football’s governing body FIFA standards. US-based Hill International has been awarded an estimated $3.3-million three-year project management contract to oversee the construction of the stadium. Project manager Hill International, Inc. (USA) Tender categories Construction & Contracting, Leisure & Entertainment Tender products Sports Complexes

Project name Rumaila Oil Field Development Project Project number SPR1337-IQ Territory Iraq Client South Oil Company (Iraq) City Basrah Address South Oil Company Complex, Bab Al Zubair Area Postal/ ZIP 21 Country Iraq Phone (+964-40) 319 310 Email info@soc-basrah.com

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Web http://www.soc-basrah.com Description Engineering, procurement and construction (EPC) contract for the development of Rumaila oil field to increase production from 1.05 million barrels a day (b/d) to 2.85 million b/d.

Budget $15,000,000,000 Period 2017 Status Current Project Remarks This project is in Iraq. Scope of work includes 3D seismic testing of the field, which is estimated to hold about 18 billion barrels of oil. The consortium of UK's BP and China National Petroleum Corporation has been awarded the rights to re-develop this field. UK's Petrofac has been awarded a $90 million contract to carry out inspection, maintenance and repair works on this scheme. UK's Hermes Datacomms has been awarded a communications contract by BP for providing support at the Rumaila oilfield operations. As well as support for very small aperture terminal (VSAT) communications, Hermes will continue to support degassing stations, rigs and static life support camps. The contract includes additional bandwidth to South and North Rumaila sites for offering load sharing. The company will use a separate satellite provider, Yamal 200 to ensure complete independence from their existing link. Hermes has not disclosed the value of this contract. Italy office of US' GE Oil & Gas has been awarded a $40-million subcontract to supply pumps and gas engines on this scheme. It is understood that FEED study is currently in progress and expected to be completed in the second quarter of 2012. Project is expected to be completed in 2017. FEED consultant WorleyParsons (Abu Dhabi) Main contractor BP Plc. (UK), China National Petroleum Corporation - CNPC (China) Specialist contractor Petrofac International (UK), GE Nuovo Pignone (Italy) Communications, equipment and systems supplier Hermes Datacomms (UK) Tender categories Oilfields & Refineries Tender products Oilfields Exploration & Development

Bahrain Project name Steel MiniMill Construction Project Project number MPP2628-B Territory Bahrain Client Foulath (Bahrain) City Hidd Address C/o. Gulf Industrial Investment Company, GIIC Bldg., Al Hod Al Jaf Street,

Hidd Industrial Area Postal/ ZIP 50177 Country Bahrain Phone (+973) 1746 4222 Fax (+973) 1767 6161 Email giic@giic.com.bh Web http://www.giic.com.bh Description Engineering, procurement and construction (EPC) contract to build a 750,000 tonnes per year (t/y) steel shop with a 600,000 t/y rolling mill. Status New Tender Remarks This project will be located next to Hidd Steel Mill in Bahrain. It is still in the planning stage. Client is planning to dismantle and sell the process machinery it uses to produce 100,000 tonnes a year (t/y) of stainless steel and instead install a rebar mill with a capaCity of 600,000-t/y. Any of the equipment that is skid mounted will be sold. Tender to complete the conversion has been added to this scheme and was released to interested technology providers in the first quarter of 2012. Technical proposals have been submitted and are under evaluation with commercial bids due in the second quarter of 2012. The bidders include: Italy’s Danieli Corporation; Germany’s SMS Group and Austria’s Siemens Steel. When completed the steel mini-mill will have a capaCity of 900,000t/y and off-take will be used for the rebar mill with the excess being sold. Tender categories Industrial & Special Projects Tender products Steel Mills

Oman Project name Sohar Aluminium Rolling Mill Project Project number ZPR502-O Territory Oman Client Takamul Investment Company (Oman) City Muscat 130 Address Bayt Muscat Bldg., Mezzanine Floor, Al Ghubra Postal/ ZIP 1951 Country Oman Phone (+968) 2452 9000 Fax (+968) 2449 4986 Email info@takamul.com Web http://www.takamul.com Description Engineering, Procurement and Construction (EPC) contract to build an aluminium rolling mill in Sohar with initial production capaCity of 140,000 tonnes per annum. Period 2014 Status Current project

Budget $400,000,000

Remarks This project is in Oman. The scheme is being implemented by Client's subsidiary Oman Aluminium Rolling Company. Production capaCity is expected to be increased to 160,000 tonnes per annum after twelve months of completion, in 2014. Italy's Fata Engineering & Construction has been appointed as the EPC contractor. Local Teejan Construction is acting as Fata's local partner for the civil work contract on this scheme. Continuous casting, which is the latest technology in aluminium rolling, will enable the project to use molten aluminium supplied by the Client for manufacturing rolled coils. This will enable the Client to produce aluminium sheets of very thin gauges and high surface quality with shorter product delivery time and lower energy cost. Civil and building works are currently underway. The equipment has been purchased. Shipments with equipment will be received soon. Partial hand over of the project is scheduled for August 2013. Main contractor Fata Group (Italy) Civil engineering contractor Teejan Trading & Contracting Company L.L.C (Oman) Tender categories Industrial & Special Projects Tender products Steel Mills

Alternative Energy, Water Works Tender products Independent Water & Power Plants (IWPP)

Project name Salalah IWPP 2

Post date February 1, 2012 Remarks This project is in Esfahan, about 400 kilometres south of Tehran. The LRT comprises five lines. First is the main line, which runs 12.5 kilometres north-south and has (15) stations. Lines two and three also run northsouth and are 21.9 kilometres and 16 kilometres respectively. Line four runs south-west and will be 43 kilometres, while the fifth line will run 20 kilometres east-west across the City. The scheme is being financed through the government's civil projects division. Client has invited companies to submit bids for a contract to supply railway track. The deal involves supplying 2,000 tonnes of rail bars to be used in construction of the LRT project. Local Hexa Consulting Engineers has been appointed as the consultant. A group comprising local Metra Consulting and France's Systra is carrying out the civil works for Line 2. Main consultant Hexa Consulting Engineers (Iran) Civil engineering contractor Systra (France), Metra Consulting Engineers (Iran) Tender categories Public Transportation Projects Tender products Railways

Project number ZPR694-O Territory Oman Client Oman Power & Water Procurement Company S.A.O.C City Ruwi PC 112 Address Muscat International Centre, 2nd Floor, Suite 504 Postal/ ZIP 1388 Country Oman Phone (+968) 2482 3028 / 2482 3000 Email ahmed.busaidi@omanpwp.com Web http://www.omanpwp.co.om Description Construction of an independent water and power project (IWPP) with capaCity of 250MW gas-fired power plant and 10 million imperial gallons a day (MIGD) of desalination plant in Salalah. Period 2016 Status New Tender

Budget This project is in Oman. Purpose of the project is to meet increasing demand for power and potable water in the region. The project is currently under planning stage. Request for proposals (RFP) for the technical consultancy services is expected to be issued soon. Project completion is expected in 2016. Tender categories Power Plants &

Iran Project name Esfahan LRT Project Project number MPP2589-IR Territory Iran Client Esfahan Urban Railway Organisation (Iran) City Esfahan Address Near Chamran Bridge, Kaveh Highway Postal/ ZIP 81389 Country Iran Phone (+98-311) 435 8410 Fax (+98-311) 435 8422 Email info@esfahanmetro.org Web http://www.esfahanmetro.org Description Construction of Esfahan light-rail transit (LRT) scheme comprising five lines. Period Status New Tender

Budget $1,900,000,000

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DIARY | INDUSTRY EVENTS

DIARY GLOBAL TRENDS

84%

Reported slump in Rusal’s Q1 earnings as global aluminium prices declined

$14.7bn

Q1 sales reported by Dow Chemical; a 4% increase on 2011

48m tonnes

the aim for Iran’s steel production by 2017, according to president Ahmedinnejad

3.6m tonnes of raw steel produced by Iran Q1, 2012; 6.8% increase on last year

$150bn

value of GCC projects to be awarded by 2013

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JUNE 2012

MENA

INTERNATIONAL

ME Environment Industry Meet

Smart Investment & International Property Expo Hong Kong

Atlantis, The Palm Jumeirah, Dubai: June 4 Organisers Frost & Sullivan present opportunities in the growing Middle East environment market. The meet will conclude with Frost & Sullivan Environment Excellence Awards on June 4, 2012 at Atlantis, The Palm, Dubai, UAE.

Iraq Build

Baghdad International Fairground: June 4 – 7 International exhibition designed so suppliers and builders of construction and building equipment can be brought together under a single roof along with investors and other market analysts.

Project Lebanon

Beirut International Exhibition & Leisure Centre: June 5 – 8 The largest gathering of its kind for building sector professionals, with unrivaled opportunities for suppliers to expand their business at the centre of one of the world’s largest rebuilding projects.

Smart City ME

Ritz Carleton, DIFC, Dubai: June 6 – 4 A learning platform for those seeking ICT solutions and strategies to design, build and manage future cities, in the face of accelerated urbanization, infrastructure bottlenecks and rising resource depletion. Smart Cities World MENA 2012 addresses strategic and technology master planning for smart urban infrastructure.

Interbuild Egypt

Cairo International Convention & Exhibition centre: June 21 – 25 Dedicated towards the theme of Building for the future, materials for better environment and energy saving construction techniques will be showcased by the exhibitors at global scale. Attended by researchers and experts linked to the different building and construction fields, including consultants, engineers, contractors and real estate developers

Building Iraq

Baghdad International Fairground: June 30 – July 3 Showcasing building materials and systems, construction equipment, prefabricated buildings, roads and flyovers, construction tools, marble granite and ceramics, kitchen and bathroom products, landscaping, safety and security equipment, air-conditioning, lighting, flooring, interiors, specialist vehicles detection equipment, floor finishes, identification systems, interiors and lighting, locking qquipment, marble and granite products, rescue and emergency equipment and security doors.

Hong Kong Convention & Exhibition Centre: June 2 – 3 The largest show of its type in Hong Kong, the Smart Investment & International Property Expo is set at Hong Kong Convention & Exhibition Centre (HKCEC).

China GRI

The Portman Ritz-Carlton, Shanghai, China: June 6 – 7 Bringing together the leading decision makers of global real estate investors, financiers and Chinese developers, China GRI will address the challenges and opportunities created by the market correction in China. Like all GRI meetings, the China GRI will have no speakers, no panelists, just closed door intimate conversations in small groups where all present participate.

Comms Expo

Barbican Exhibition Centre, London: June 26 – 27 The new international conference and exhibition for the network infrastructure industry, it will be held at London’s prestigious Barbican Centre on June 26 and 27 and is organized by HF Network Limited.

Singapore International Water Week

Sands Expo and Convention Center, Marina Bay Sands: July 1 – 5 In the face of global urbanisation and climate challenges, the 2012 theme “Water Solutions for Liveable and Sustainable Cities” reinforces the pressing need to integrate sustainable water management strategies into the urban planning process. Singapore International Water Week 2012 provides the platform to address these challenges and explore opportunities in the integration of water solutions and urban planning in cities around the world.

Guangdong Build UAE 2012 Exhibition The exhibition is held by CCPIT Guangdong, China and Guangdong Emirates Business Union.

Date: Time: Venue: Location: Products:

18-20 June 2012 10:00am-7:00pm China Town Building Materials Center Sharjah No.10 Industrial Area, Sharjah Ring Road All kinds of Building Materials & home decorations

More than 5000 customers are invited from THE GCC and Africa. Â

Contact: Tel: 06-5429350 | 050-4609888 | 055-8528809 Email: chinatownbmc@hotmail.com |chinatownuae@gmail.com