Big Project ME December 2013

093DECEMBER 2013

ALSO INSIDE AWARD ROUNDUPAL JAHRA ELEVATED THE YOUNG TURKSDEVELOPING DUBAI

Hill International’s head of international project management operations Raouf Ghali on why he and you can look forward to 2014

OUTOF THESHADOWS

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THE BIG PICTURE BIGPROJECTME.COM

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In 2014, the Construction Machinery Show 2014 is teaming up with leading Saudi exhibition organiser, Dhahran International Exhibitions Center (DIEC). This year’s show will run in conjunction with the popular BUILDEX event, now in its 16th year.

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AD234x290_BigProject_28112013_HR_AW.pdf 1 12/3/2013 4:11:57 PM

CONTENTS

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DECEMBER 2013

PAGE 20Big Project ME visits

the Al Jahra Road Development project

in Kuwait City.

05 THE BIG PICTURE

IMF CAUTIONS DUBAI OVER ANOTHER PROPERTY BUBBLE

Concerns expressed about over-optimism in property market

12 NEWS ANALYSIS

THE COUNTDOWN BEGINS

Big Project ME looks at the possibilities open to Dubai ahead of Expo 2020

16 IN PROFILE

AHEAD OF THE CURVE

Wael Allen sits down with Big Project ME to chalk out his plans for Hyder

20 SITE VISIT

ELEVATED SOLUTION

Big Project ME pays a visit to the Al Jahra Road Project in Kuwait City

26 COVER STORY

KING OF THE HILL

Stephen White flies to London to talk to Raouf Ghali, head of IPM at Hill

36 AWARDS ROUNDUP

A CELEBRATION OF EXCELLENCE

Celebrating all the winners at the Big Project Middle East Awards 2013

42 COUNTRY FOCUS: TURKEY

THE YOUNG TURKS

Why Turkey could be the next big player in the GCC construction market

46 SECTOR FOCUS: MASTER DEVELOPERS

OVERCOMING FEARS

Master developers explain why investors in Dubai are over their fears

50 SPECIAL FEATURE

PREFABRICATING THE FUTURE

Why prefabricated construction could be the way forward for the industry

56 TOP TENDERS

AL HABTOOR CITY UP FOR BIDS

Listing the Middle East’s biggest construction tenders of the month

62 THE BIG 5 REVIEW

BIGGER AND BETTER

Big Project ME reviews the biggest The Big 5 show in years

64 CONSTRUCTIVE CRITICISM

PRE-EMPTIVE MEASURES

Why a Ministry of Labour initiative has set the standard for governments

2 DECEMBER 2013MID

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EDITOR’S COMMENT BIGPROJECTME.COM

Stephen WhiteGroup Editor

The last week of November was a breathless one for the Big Project ME team as we took on The Big-5, our Big Project ME Awards and greeted the news that Dubai is going to host the Expo 2020 extravaganza. I spend my life writing words and we heard many words last month. Challenge. Value. Dubai. Saudi Arabia,Iran, reward, partnership, but one word I heard above all is opportunity.

The Big Project ME Awards was an opportunity to thank all of our readers who participated in the process and offer a well done to all that were shortlisted or won an award. And this month’s comment is an opportunity to thank the judges who freed up valuable time for us.

The shortlist was a pretty useful barometer of the opportunities we have seen in the last two years. Infrastructure, rail, roads dominated the judging and it will be fascinated to see if the list will evolve in the next 12 months, especially when Qatar and Dubai start construction in earnest.

With the news of the Expo win ringing in our ears, I spoke to many people at The Big-5 who were genuinely afraid that we may see another 2008, and unfortunately another 2009 and 2010 if we fail to heed the lessons of the past. I believe the industry has an opportunity to prove these people wrong. Prove that when we say we will deliver. We will. When we promise to fulfill all the obligations on our contracts. We do. We can control what’s in our grasp. We just need to grasp the opportunity.

When the temptations of the past and the bad habits start to come back. We refuse and seize the opportunity to drive forwards and upwards.

Onwards and Upwards

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PUBLISHER DOMINIC DE SOUSA

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THE BIGGEST PICTURE

BIG PROJECT ME TALKS TO WAEL ALLEN OF HYDER CONSULTING ABOUT HIS EXPANSION PLANS – PAGE 16

CONCERNS EXPRESSED ABOUT ‘OVER-OPTIMISM’ IN THE PROPERTY MARKET AS PRICES AND EXPECTATIONS RISE IN THE EMIRATE

THE IMF HAS cautioned investors in

Dubai against over-optimism regarding

its property market boom as prices and

expectations rise in the city.

Masood Ahmed, IMF’s director

for the MENA region said: “When you

begin to see very rapid increases in any

asset prices, then you just need to be

prepared to act.

“The government of Dubai is already

beginning to act,” he added.

According to a Reuters news report,

Ahmed said that measures needed to be

taken to avoid the mistakes that led to

the property bubble of 2008.

“Singapore has a one-time tax of

15% if you resell the property within six

months,” he explained.

“So there are instruments that can

be done (used). Going forward, just

make sure that fundamentals continue

to drive it, do not let yourself be over-

taken by a degree of exuberance.”

The UAE’s property market has

been on a high since developers began

launching new projects last year, expert

and this bullishness was also proved by

the popular success of Cityscape Global

2013, recently held in Dubai.

House prices in the emirate have

jumped by more than 20% over the last

year, a surge that prompted the IMF to

warn in July of this year of the risk of

another property bubble forming after

the crash that lasted from 2008 to 2010

and almost brought state run compa-

nies to a halt.

Early this year, Dubai said that it

would double a registration fee charged

on real estate transactions, from 2% to

4%, to prevent excessive speculation.

The chief of the city’s land depart-

ment told Reuters that Dubai would

strictly enforce existing rules and if

necessary, set up new ones to prevent

another property bubble.

Concerns regarding the need for

a coordinated plan by state-linked

property developers continue to linger,

though.

“That’s what we have lacked in the

run-up to 2008,” explained Farouk

Soussa, Citigroup’s chief economist

for the region at the Cityscape Global

event. “There was too much competi-

tion between the big state developers

and that’s what I fear we are running

into again.”

Since 2012, state-linked developers

have dusted off projects shelved dur-

ing Dubai’s 2009-2010 debt crisis and

unveiled new ones. Some $51 billion

worth of projects is estimated to have

been announced in between January

and September. The UAE central bank

imposed limits on mortgage loans last

month and its governor insisted that

he was not worried about a new house

price bubble.

IMF CAUTIONS DUBAI OVER EFFECTS OF ANOTHER PROPERTY BUBBLE

n Mohammed Bin Rashid City, value: $100 billion – Launched November 2012

n Akoya by Damac, value: $2.5 billion – Launched April 2013

n Bluewaters Island, value: $1.6 billion – Launched February 2013

n Viceroy Palm Jumeirah, value: $1 billion – Launched May 2013

DUBAI MEGA-

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ABU DHABI FINANCE TIES UP WITH RICS TO REGULATE PROPERTY VALUATIONS

Hope that transparency in the UAE property market will boost investor confidence

In an effort to ensure better regula-tion of property valuations, Abu Dhabi Finance (ADF) has signed a Memorandum of Understand-ing with the Royal Institution of Chartered Surveyors (RICS).

ADF hopes that transparency in the UAE property market will boost investor confidence and increase foreign direct investment (FDI) into the country.

“Home owners, investors, regu-lators and lenders all want to see a consistent, professional approach to valuations,” said Chris Taylor, CEO of ADF. “A move towards

greater regulation of valuers will help build confidence in the market.”

ADF understands artificially elevated property valuations can overheat the property market and can impact investor confidence from outside of the region. It is therefore hoping the collaboration with RICS can help contain this market uncertainty.

“By working with RICS Regis-tered Valuers, ADF can help pro-mote consistency and transparency in the UAE valuation profession, and thus limit the risk faced by investors and those buying their own home,” said Taylor.

RICS developed the regulatory monitoring initiative, known as Valuer Registration (VR) following the last global financial crisis to ensure the consistent application of professional valuation standards worldwide.

BIG PROJECT ME TAKES A TOUR OF THE AL JAHRA ROAD DEVELOPMENT PROJECT IN KUWAIT – PAGE 20

12

KINGDOM CRACKS DOWN ON ILLEGAL WORKERS

Round-ups of workers fall under the Nitaqat programme, authorities say

SAUDI AUTHORITIES HAS rounded up

thousands of illegal foreign workers at the start

of a nationwide crackdown ultimately aimed at

creating more jobs for locals, a Reuters report

said.

Thousands of workers left the country fol-

lowing a grace period, during which expatriates

were asked to fix their legal status to avoid leav-

ing the Kingdom or facing jail.

These exercises – broadly falling under the

country’s Nitaqat programme – are efforts on

behalf of the government to increase employ-

ment for locals in the country.

Currently, official Saudi numbers estimate

an unemployment rate of 12%, a number that

nevertheless excludes a large number of citizens

who say they are not seeking a job.

Police carried out raids on businesses,

markets and residential areas to catch expatri-

ates whose visas are invalid because they are not

working for the company that ‘sponsored’ their

entry into the kingdom, added the report.

Raising private sector employment in a coun-

try where most Saudis are in government jobs

and where businesses employ more foreigners

than locals is a major challenge for the Kingdom.

Reports as Big Project ME went to press,

suggest more than 140,000 foreign workers have

been arrested across the Kingdom, and126,000

have already been sent back to their home coun-

tries since the beginning of November.

PER CENT

OFFICIAL SAUDI UNEMPLOYMENT RATE

ARABTEC RESULTS SHOW STRENGTH IN CONTRACTOR

UAE contractor beats analyst predictions as net profits triple

FINANCIAL HIGHLIGHTS (AED M, UNLESS OTHERWISE STATED) 9MTHS 2012 9MTHS 2013 CHANGE Q3 2012 Q3 2013 CHANGE

AED (M) AED (M) % AED (M) AED (M) %

BACKLOG 18.167 23,500 29% 18.167 23,500 29%REVENUES 4,007 5,080 27% 1,395 1,937 39%

GROSS PROFIT 493 605 23% 152 232 53%

MARGIN% 12% 12% - 11% 12% 1%EBITDA 308 457 48% 103 184 79%MARGIN% 8% 9% 1% 7% 9% 2%

NET INCOME 145 367 153% 52 162 212%

NET MARGIN% 4% 7% 3% 4% 8% 4%EARNINGS PER SHARE 0.07 0.13 86% 0.02 0.03 50%NET PROFIT 108 256 137% 35 101 189%CASH FLOW FROM OPER- 179 234 31% - - -BACKLOG-TO-REVENUE 3.4x 3.5x - - - -

ARABTEC HAS RE-

CENTLY announced a

hike in its third quar-

ter net profits, beating

analyst predictions.

Involved with

building a branch of

France’s Louvre mu-

seum in Abu Dhabi,

the company made a

Q3 net profit of $27.4

million. The figure is

not only almost thrice

its 2012 Q3 net profits

of $9.5 million, it is

also better than ana-

lysts’ predictions that

Arabtec’s quarterly

profit would be $17.4

million.

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THE BIG PICTURE

ALMOST 200 BUILDINGS were demolished by the Municipality of Abu

Dhabi following their failure to meet public health and safety standards.

Since 2010, 881 buildings were marked out as requiring improvement,

of which 685 were refurbished, 16 were demolished and 57 are currently

under maintenance.

90 buildings were evacuated and more than 55,000 workers moved

to worker accommodation in the city’s suburbs after 99 offences were

recorded during the same period for buildings housing a large number of

workers and bachelors in residential neighbourhoods. 755 of the 41,000

workers, who have been occupying 2,700 villas in residential neighbour-

hoods since 2010, were also evacuated.

Undertaken between 2010 and 2013, these demolitions were carried

out after building owners were informed, a report by Gulf News said.

More than 12,500 warnings were issued in 2011 for building, public health,

and roadside violations, which reached 17,700 in 2012 and 10,500 by the end

of September 2013. Commercial and administrative entities operating

from villas in residential districts were also evacuated by the Municipality.

200 ABU DHABI BUILDINGS DEMOLISHED TO IMPROVE PUBLIC SPACES

THE IMPORTANCE OF PEER REVIEW AND FINDING POWER IN ARMENIA WITH RAOUF GHALI – PAGE 26

L&T SECURES OETC CONTRACT WORTH $72MN

Contract involves the construction of two 132/33kV grid stations in Amerat and Mabella-2

L&T (Oman) LLC, a subsidiary of Indian engineering giant Larsen & Toubro Ltd, has secured an order worth $72mn from Oman Electricity Transmission Co (OETC).

“This is an engineering, procurement and construction (EPC) contract,” said Surendhra Babu, chief executive of L&T (Oman), add-ing the contract involves the construction of two 132/33kV grid stations in Amerat and Mabella-2, along with the installation of 132kV overhead lines and cables in Muscat governorate.

The company estimates the project will be completed in 20 months.

“We have landed an electrical job after a long time. We are also trying to get more such projects in Oman which are in the tendering process. There are projects in the infrastructure sector and we will be bidding for more contracts,” Babu added.

MAKKAH TO BEGIN WORK ON TWO METRO SYSTEMS IN THE FIRST QUARTER OF 2014

Work on first phase expected to cost $6.7 billion and will begin by the middle of next year

THE FIRST PHASE of the $16.5

billion-worth integrated public

transport project will see the

establishment of two metro

systems in Makkah under the aegis

of Makkah Governor Prince Khaled

Al-Faisal.

A metro line of seven stations

beginning at Jamrat region in Mina,

running 11km westward and along

the northern side of the Grand

Mosque, King Abdul Aziz Road and

Haramain Railway’s main station

in Rusaifa before ending at the

Makkah-Jeddah Expressway will be

the first project under the develop-

ment.

The second metro, a 33km

line with 15 stations will start at

Madinah Road, north of Taneem

Mosque and move southward

to reach the western side of the

Grand Mosque as it passes by King

Abdulaziz Towers and Azizia Street,

before turning to Taif-Karr Road to

reach Umm Al-Qura University.

Work on the first phase is

expected to cost around $6.7 billion

and will begin by the middle of next

year and require three years for

completion, said Makkah Mayor

Osama Al-Bar.

“We will begin procedures

this week for the qualification of

contractors to award contracts in

the first quarter of 2014,” said Saad

al Qadi, CEO of Makkah Trains

Company.

He added the first phase would

be carried out in three contracts

involving civil work, control im-

plementation, signal systems and

importing trains and carriages.

Most of the first metro line and part

of the second will operate through

underground tunnels.

The Makkah transport project

involves four metro lines that will

span at total of 114km over 88

stations and is expected to improve

pilgrim transportation throughout

the city.

90 buildings were evacuated and more than 55,000 workers moved to worker accommodations

WARNINGS

ISSUED IN 2011 FOR BUILDING, PUBLIC HEALTH AND ROADSIDE VIOLATIONS

12,500

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EMAAR LAUNCHES $3 BILLION DEVELOPMENT IN ERBILKurdistan region of Iraq regarded as an attractive investment hub

Keeping with current market interest in Iraq’s infrastructure markets, Dubai-based Emaar Prop-erties launched a $3 billion development, called ‘Erbil Downtown’, in Erbil, the fast-growing capital of Kurdistan region of Iraq.

Relatively unaffected by the political instability that interferes with infrastructural development in the country, Kurdistan region is viewed as

an attractive investment hub, especially in the energy sector.

The project is expected to reach completion in three stages over a period of five years or sooner, if market factors permit so. Covering an area of 541,000sqm near the city centre, the development will include residential apartments, hotels and a shopping centre.

OMAN’S MINISTRY OF Manpower is

reportedly going to suspend the recruitment

of foreign workers for six months, as part of its

labour market regulation measures.

Oman News Agency reported the Ministry

will restrict small construction and cleaning

companies from employing expatriates until

April 2014, at the earliest. The move is also to

enable a review of the actual needs of the labour

force across different sectors.

The ministry seeks to eradicate illegal work-

ers as a mode of creating job opportunities for

the national workforce. The Omani government

had also said, earlier this year, that it would

limit the total number of foreign workers and

raise minimum wage for locals as an attempt to

increase the employment of its citizens.

Foreigners comprise 1.3 million – almost

39% – of the total 3.3 million population in the

country, most of whom are South or Southeast

Asian workers brought in to do skilled or strenu-

ous jobs in infrastructural sectors such as oil,

construction and service industries.

OMAN’S MINISTRY OF MANPOWER TO SUSPEND FOREIGNER-RECRUITMENTMinistry seeks to eradicate illegal workers as a mode of creating job opportunities for the national workforce

GCC ON TRACK FOR $194BN RAILWAY BOOM

Railway is region’s largest capital projects market

39PER CENT

FOREIGNERS IN OMAN’S TOTAL POPULATION

$194 BILLIONValue of rail projects that are planned or underway in the GCC

$30 BILLIONValue of rail sector projects awarded so far in 2013

$108 BILLIONTotal value of projects awarded in 2013 so far

$22 BILLIONValue of the Riyadh Metro Project

TIMELINE FOR A MASSIVE BOOST IN THE REGION’S

RAIL MARKET

12 MONTHS

JEDDAH METRO EXPECTED TO BE

AWARDED

H12015

FIND OUT WHO THE WINNERS WERE AT THIS YEAR’S BIG PROJECT MIDDLE EAST AWARDS – PAGE 30

Winner of

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and Construction sector

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12 DECEMBER 2013MID

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NEWS ANALYSIS BIGPROJECTME.COM

There was always a sense of its arrival.

Even as reports suggested the UAE’s

burgeoning property markets could be

headed for ugly downturns, thinkers,

doers and leaders across the construction

sector remained largely positive about Dubai’s

Expo 2020 bid, and the after effects of what

looked like a sure-shot victory.

THE COUNTDOWN BEGINSAs the dust settles on Dubai’s celebrations on receiving hosting rights

for the Expo 2020, Big Project ME looks at the various possibilities this result has opened up for the country’s construction sector

As this piece goes to press, it’s been about a

100 hours since the announcement that Dubai

defeated Yekatrinberg (Russia), Izmir (Turkey)

and Sao Paolo (Brazil) with massive margins to

win the hosting rights for Expo 2020 – and the

city is not done celebrating just yet.

Burj Khalifa provided the backdrop for an

extravagant display of fireworks that were set

off within minutes of the announcement, while

a national holiday was declared for educational

institutions across Dubai.

Celebrities posted congratulatory messages

on social networking forums, and a video

of Dubai’s Crown Prince, Sheikh Hamdan

bin Mohammed bin Rashid Al Maktoum’s

celebrations, went viral.

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NEWS ANALYSIS

Crowds poured into the streets in their cars,

and the jubilation was clearly visible across

the city. For that moment, the possibility of a

property bubble, expanding rental rates and

rising commodity costs were all but forgotten.

The Expo’s effects on Dubai have been

circulated in various reports – financial and

consumer – since the announcement. The

impact can broadly be divided into four

sections across the city’s economic landscape,

and the region’s construction sector stands to

undergo major alterations.

The most obvious impact of the run-up

to the Expo is job creation. “Dubai Expo

2020 will spur significant employment, trade

and investment opportunities for the entire

MENASA region, leaving a lasting economic

impact,” said HE Reem Al Hashimy, UAE

Minister of State and managing director of the

UAE’s Higher Committee for Hosting the 2020

World Expo in Dubai.

An Oxford Economics study about the

Expo’s impact has revealed that 277,149 jobs

will be created between 2013 and 2021. As

much as 40% of these will benefit the travel and

tourism sector alone.

While employment-generation and hiked

salaries maintain the celebratory atmosphere

in the city’s employment market, concerns

are raised on the other side of the transaction

cycle, with reports pertaining to rising property

prices and inflation doing the rounds.

Early last month, the International

Monetary Fund (IMF) had warned Dubai

against the possibility of a property bubble as

the market boomed due to increased valuations

across the city.

With the Expo now confirmed to be held

in Dubai, these prices are likely to continue

their up-growth, and there is already talk of

increased residential rates in the market.

A report by local daily Gulf News has

revealed increased property transactions at

Dubai World Central.

“Projects such as the construction of the

Dubai Metro Purple Line and the work in and

around the Dubai World Central — the actual

site of the expo — are likely to be expedited,”

said Mat Green, head of research and

consultancy UAE, CBRE Middle East as per the

report.

“The new airport (Al Maktoum

International) would also become a catalyst to

development of the air transport infrastructure

— a key driver for the sustained economic

growth of the emirate.”

“REGULATORY BODIES ARE STRICTER NOW, WHICH IS HEALTHY, BUT WE’LL HAVE TO CLOSELY WATCH THE TRENDS AND PATTERNS. I HOPE THE MARKET HAS LEARNT A LESSON”

EXPO 2020 NUMBERS:

n 438ha Size of Dubai Expo site in Jebel Ali

n 277,000 Jobs expected to be created as a result of the win

n US$8.1billion Investment in new infrastructure to host the event

GRAND DESIGNSThe Expo 2020 celebrations continue as the real work starts to begin.

Additionally, the CBRE report, released prior

to the announcement of the bid results, said

that market sentiment in support of the Expo in

Dubai could further inflate the cost of living in

the city, stating it could “compound a situation

where residential rents have already grown by an

average of 23% during the last year.”

The construction industry too, it is believed,

will have to bear the brunt of the highly

opportunistic market.

“I was discussing the impacts of Dubai

winning the Expo 2020 bid with one of my

cement suppliers last week,” said Stefano

Iannacone, managing director of IBS Mapei,

Dubai. “He told me there was a good chance

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NEWS ANALYSIS BIGPROJECTME.COM

that the materials would get costlier by about

10-15% if the results favour Dubai.”

“It doesn’t necessarily need to happen,

but I’m very concerned about rising material

prices,” he adds.

Nevertheless, residents and construction

professionals alike can be assured that an

extensive infrastructure boom is headed

Dubai’s way.

Dubai Metro’s red line is expected to be fast-

tracked into completion in time for the Expo

2020. The world’s tallest planned commercial

tower by the Dubai Multi Commodities

Centre, named ‘Burj 2020’ on the eve of the bid

results, will also be constructed as part of the

preparations for 2020.

“There is scope to build in the emirate,”

says Iannacone. “The Expo will facilitate the

hospitality sector, and with a huge influx of

visitors and potential employees expected,

there will also be a high demand for residential

units, schools, hospitals and so on.”

“Dubailand currently needs more

accessibility from across the city, so there is a

possibility of new roads being constructed that

lead into the site itself,” he adds.

“It all scares me a little bit, though, because

I’m afraid that the market will repeat its

mistakes from 2008,” he adds, echoing earlier

market reports that consistently claimed UAE

– and Dubai, in specific – would have to tread

carefully amidst its trade boom.

The Expo bid win was announced within the

same week as UAE’s national day, giving young

Emiratis and expats alike more than one reason

to celebrate.

“MATERIALS WOULD GET COSTLIER BY ABOUT 10-15% IF THE RESULTS FAVOUR DUBAI. IT DOESN’T NECESSARILY NEED TO HAPPEN, BUT I’M VERY CONCERNED ABOUT RISING MATERIAL PRICES”

“Dubai is the perfect candidate to host the Expo because it is a universal city. It is already globalised and it’s so connected to the world. We are very ready to contribute our Expo experience and learnings from the Milan Expo and have a very important bridge between the two Expos.”Giorgio Starace, Italian Ambassador to the UAE

“Dubai’s bid for the World Expo 2020 demonstrates how large cities can rise to the challenges of the future, which is relevant to Lyon’s own international development plan. Hosting the World Expo constitutes an important and natural progression for Dubai, which has made its tourism strategy the engine of its economic reconversion.”Gerard Collomb, Senator-Mayor of Lyon and President of Greater Lyon

“Dubai is a city that shows how different cultures and peoples can converge behind common goals, living and working side by side. I am proud that the UK has played a part in this and delighted to be making the case for this city to get the global recognition that Expo 2020 would bring.”David Cameron, Prime Minister, UK

“Canada believes it is time for the Middle East to host at a time of such hope and challenge in the region. Dubai is best placed to bring together the most diverse group of peoples from around the world, to share ideas, aspirations and solutions for the future. Canada’s support for Dubai reflects our commitment to the dynamism, hope and future of emerging economies in the region and beyond.”Canadian Foreign Affairs Minister John Baird

DUBAI BID SUPPORTERS

While social networking websites are busy

with users dissecting the pros and cons of the

Expo 2020 in Dubai, reports explaining the

positive impact of the event on the city’s many

economic sections, such as SMEs, hospitality,

infrastructure, construction and so on continue

to emerge, proving that despite the victory,

Dubai has a long way to go in proving itself to

its doubters - well-meaning as they might be.

The government’s role will be more decisive

than ever hereon; Dubai’s bid committee

has constantly placed emphasis on the need

for partnerships - a facet also visible in the

number of countries who came out in support

of the emirate’s bid in the run-up to the

announcement.

Locally, though, the government will have

to continue its efforts in economic rejuvenation

and regulation to ensure the city is braced well

to host the Expo 2020, and sustain itself in the

process as well.

“Regulatory bodies are stricter now, which

is healthy, but we’ll have to closely watch the

trends and patterns. I hope the market has

learnt a lesson,” Iannacone concludes. n

PRICE RISE WARNINGSteffano Iannacone, Mapei, warns that material prices are under threat but is excited by the potential.

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IN PROFILE WAEL ALLEN BIGPROJECTME.COM

Big Project ME sits down with Wael Allen, the new group chief operating officer at Hyder Consulting Middle East, for a wide ranging and insightful chat.

Gavin Davids and Stephen White report

AHEAD OFTHE CURVE

“We always believe that change is a healthy

thing to do and we encourage our people to

take on different roles and grow within the

company. I think that having someone in

the same position for a long time is probably not

the best for them and for the company.”

It’s probably a good thing that Wael Allen

is a big fan of change, because he’s about to

embark on a big one. Currently the regional

managing director of Hyder Consulting Middle

East, he is about to be named as the group chief

operating officer and chairman of the Middle

East. He is set to assume his responsibilities in

the New Year.

In late November of this year, he sat down

with Big Project ME to outline his vision for

the engineering consultant giant and explain

why he believes that the Middle East region will

come to play a major role in the fortunes of his

company and the industry.

“It’s a new role actually. Hyder is always

keen to create opportunities for its employees.

As we grow in scale and complexity of projects,

we’re shifting ourselves into the multinational

model where we can scale up fast and use all

the resources of the company to execute all

of our mega projects around the world,” Allen

explains, holding court at Hyder Consulting’s

offices in Dubai.

“It’s not about us catching up with other

organisations or emulating ourselves. I think

the role is specifically about making sure that

our clients receive the best possible service.

And that is through bringing all of the resources

of the company to bear on a specific project (if

necessary). I think we’re unique at Hyder in

that we’re truly multinational.”

“What I mean is that we’ll actually bring

the right resources in, no matter where they

are from, for a job – independent of location.

So actually, you see an execution of projects

and giving value to the client even when the

locations of the client and the project team are

not necessarily in the same place. Doing that is

the true multinational model,” he points out.

This multinational model that Allen speaks

off is set to be one of Hyder’s trump cards in the

Middle East, given the rapid expansion of the

consultancy’s regional project portfolio. Over

the next few years, Hyder will be taking on a

variety of projects, from the Riyadh Metro to

the Kahramaa Water Security Project in Qatar.

The scope and variety of these projects

makes it essential for Hyder to be on the ball

when it comes to delivering them to their

clients. Not only are expectations high from

the client’s side, but Allen says that he’s

determined to ensure that Hyder Middle East

meets much higher expectations: his own.

“I think I have a very clear mandate on

what I need to do. It’s basically assessment

and allocation of the right resources to the

right projects, supporting and managing what

we call ‘group projects’. Some of the projects

are large enough that they are given the

connotation of being ‘group projects’ rather

than ‘regional projects’.”

“What I mean by that is that if the Hyder

Group is interested in the project, it’s reviewed

at the highest level and all resources and

support from other management is given

to ensure that those resources are given to

these projects. With group projects, all the

company’s resources, efforts and support is

actually provided.”

“We have our global excellence centres and

part of my job is to make sure that they’re scaled

up properly and that we capitalise on the right

technology and lessons learnt from all projects.

We have a library of data that is available to

all regions which makes sure that we’re not

‘reinventing the wheel’ and that we’re giving

“WE’LL ONLY TAKE ON PROJECTS WHERE WE THINK OR STRONGLY BELIEVE THAT WE CAN PROVIDE A GOOD SERVICE. THERE HAVE BEEN MANY TIMES WHERE WE WILL GO TO OUR CLIENTS AND SAY, ‘ON THIS OCCASION, UNFORTUNATELY, WE WON’T BE IN A POSITION TO GIVE YOU THE BEST SERVICE’”

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IN PROFILE WAEL ALLEN

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IN PROFILE WAEL ALLEN BIGPROJECTME.COM

good, maximum value to our clients,” he

explains. “Looking at the global design centres,

that’s where we can scale up fast. Those are the

elements. Integrating all the regions into our

multinational model allows us to make sure that

we can operate consistently.”

“As a company, we always strive to ensure

that we have a sustainable business model.

When I say sustainable, I mean having the

diversity in the type of projects that we

undertake. While the last four years have seen

a heavy emphasis on infrastructure and serving

the public sector, we’re very keen within the

company to have a good balance between the

public and private sector,” he adds.

Allen continues, pointing out that this not

only affords Hyder’s people the opportunity to

work on different projects and diversify Hyder’s

portfolio, but that it also helps the company

spread out its risk.

“We consciously evaluate and assess the

work, and we’ll only take on projects where we

think or strongly believe that we can provide

a good service. There have been many times

where we will go to our clients and say, ‘on

this occasion, unfortunately, we won’t be in a

position to give you the best service’ and decline

to take part in the project,” Allen admits.

“The first thing we want is to be able to

provide the right resources to create the

appropriate impact,” he says.

This reluctance to offer anything other

than the best to clients is something that Wael

Allen is convinced will set Hyder apart from

its competitors in a massive $119.6 billion

infrastructure market.

As one would expect from such a seasoned

campaigner in the Middle East, Allen is quick to

assess the market and identify how Hyder can

best take advantage of the opportunities on offer.

“I think the challenges across the globe

are the same. It is water resources, energy and

environmental issues. We’re in all three aspects.

The challenges across the globe are the same.

Economies are in recession and for them to

recover, they’ll need good infrastructure. That’ll

be through communication, transportation, and

logistics. We’re in all these sectors that will make

a difference to the viability of water resources, as

well as sustainability and energy,” he asserts.

“In Qatar, we’re fortunate to have won many

significant projects from Ashghal, where we’re

enhancing the whole road and transportation

infrastructure, as well as looking after the

security of water. We’re looking after what is

probably one of the largest mega-reservoirs in

the region.”

This is the Kahramaa Water Security project

which will see Hyder working with Qatar

General Electricity and Water Corporation on

a water project that will provide seven days of

strategic water storage within its network. Its

“AS A COMPANY, WE ALWAYS STRIVE TO ENSURE THAT WE HAVE A SUSTAINABLE BUSINESS MODEL. WHEN I SAY SUSTAINABLE, I MEAN HAVING THE DIVERSITY IN THE TYPE OF PROJECTS THAT WE UNDERTAKE”

Wael Allan joined Hyder Consulting on 1 April 2009. He has a strong background in multinational business management having worked for a number of major engineering and construction companies including Raytheon Engineers and Constructors.

Wael, who is fluent in Arabic, has extensive experience in running global businesses through his work in Saudi Arabia, Japan, Germany, the UK and USA. He is also skilled in delivering sustainable business growth through a balanced approach to operations and business development.

Prior to joining Hyder, Wael held the positions of Executive Vice President for Skanska USA Building Inc and CEO of their pharmaceutical group.

WAEL ALLEN PROFESSIONAL BIOGRAPHY

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objective is to help cope with the new, more

challenging developments in the country while

also securing contingency in reserved stock

in case of a severe nation-wide water supply

interruption. Currently, water reservoirs in the

country last just a few days.

The project will entail the construction of five

mega-reservoir sites and some 200km of large

diameter ring mains. Each reservoir site will

ultimately comprise up to ten reservoir modules,

each of which may be the largest of their type in

the world.

The reservoirs and pipeline network, with

associated pumping stations, will provide up

to 15 million cubic metres of strategic potable

water storage. Commenced in February 2012,

completion is expected by the first half of 2016.

“Because we use resources from other

regions and areas, and bring them to the Middle

East, we can scale up very fast. It’s that ability

that differentiates us from others. I’m sure

the Expo 2022 will be great for the region and

the Arab World. It’ll be a catalyst for growth

and stability. It will bring more jobs and more

opportunities for everybody.

“We identify it as a great opportunity - what

kind of projects we would be able to do? Are

we able to cater for some of these potential

projects, within our current structure? Believe it

or not, the answer is yes. Because we can scale

up through our multinational model that others

may not have,” he muses.

But it’s not all about Dubai and Qatar for

Hyder. Saudi Arabia is also set to play a major

role in its plans over the next few years. In July

this year, the consultant was appointed to help

build the $22.5 billion Riyadh Metro project.

Furthermore, the company also recently

opened a ‘Global Centre of Excellence’ in

Amman, Jordan as part of a drive to tap into the

growing opportunities in the Levant region.

Being of Jordanian heritage, this is a project

close to Allen’s heart and he tells Big Project ME that he believes it’ll be crucial to Hyder’s

operations in the Middle East as it gives them

access to a young, educated, multi-lingual

workforce from the region.

In fact, given the plethora of opportunities

available in the Middle East, he says that one

of the most important roles he’ll have to play is

to say ‘no’ to projects that come up, keeping in

mind what Hyder will have to offer their clients.

“We are opportunity-rich as a company and

the challenge is knowing when to say no and

when to say yes. We’ve so many opportunities,

globally, but the challenge is picking the projects

where we can excel and make sure that we have

a happy client at the end,” he explains.

“So it’s really about matching our existing

capabilities and what we can do with our client

needs. That is the challenge going forward.”

“I really think that the risks are the same:

You’ve got to be able to identify and understand

your clients well. Their ability to pay, their ability

to execute these projects,” Allen asserts.

“So again, that’s why I talk about selectivity

of a project and the fundamentals of a particular

project. In the past, people went out of control.”

“We don’t really focus on growth for the

sake of growth. For us we focus on doing the

right things. Growth should be the outcome of

doing the right things rather than the other way

around,” he concludes, highlighting once again,

his clear vision for his company. n

“WE FOCUS ON DOING THE RIGHT THINGS AND GROWTH SHOULD BE THE OUTCOME OF DOING THE RIGHT THINGS RATHER THAN THE OTHER WAY AROUND”

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BIGPROJECTME.COM

PROJECT UNITY The Al Jahra project comprises five phases, including elevated motorways. Once completed it will form a 21km unified route.

Project Name Al Jahra Road Development Project

Project Value $936 million

Project Developer Kuwait Ministry of Public Works

Contractor Arab Contractors Company – Othman Ahmad Othman

Project design and supervision consultants

Louis Berger and Pan Arab Consulting Engineers

ON SITE AL JAHRA ROAD DEVELOPMENT PROJECT

Nearly 1,000 days ago, the Kuwait Ministry

of Public Works announced that it had

reached all the agreements necessary to

announce the launch of one of Kuwait’s

largest ever infrastructure projects.

The Al Jahra Road Development Project is

not just another run of the mill road expansion

project, the likes of which we’ve seen all over the

GCC. Far from it in fact. It is currently ranked

as one of the largest elevated road projects in

the world and given its significance to Kuwait, it

could be one of the most important projects ever

undertaken by country.

The project began construction in September

2010, says Engineer Yasser Boudastour, the pro-

ject engineer appointed by the Ministry of Public

Works to supervise the project.

He tells Big Project ME that work on the $936

million road project started after an agreement

was reached with the firms Louis Berger and the

Pan Arab Consulting Engineers (PACE) to be the

project design and supervision consultants. The

Arab Contractors Company (ACC) – Othman

Ahmad Othman, were appointed as contractors,

he adds.

“Most of the old roads in Kuwait are simple

three lane roads. The Ministry of Public Works

intends to develop these roads. The Al Jahra

Road project will be one of many projects that

will transform these roads into a grand unified

highway for 21 kilometres, which will extend

from Jahra Gate Roundabout to United Nations

Roundabout,” he explains during an interview

with Big Project ME.

“The project will include building, construc-

tion and maintenance of roads and elevated

motorways. It will comprise five phases of

improvement, which will include the major utili-

ties works such as sewage systems, overpasses,

telecommunications, electrical systems and

storm water drainage, amongst other things. It

(the project) is considered to be a solution for

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Big Project ME finds out why the Al Jahra Road Development project will be Kuwait’s most important infrastructure project. Gavin Davids reports

“THE AL JAHRA ROAD PROJECT WILL BE ONE OF MANY PROJECTS THAT WILL TRANSFORM THESE ROADS INTO A GRAND UNIFIED HIGHWAY FOR 21 KILOMETRES.”

ELEVATED SOLUTION


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ON SITE AL JAHRA ROAD DEVELOPMENT PROJECT BIGPROJECTME.COM

traffic jams and will address the growing road

congestion crisis,” he adds, pointing out that the

Al Jahra Road Development project will connect

with Kuwait’s other highways in a huge network

that will ultimately help improve traffic safety

and security.

With an estimated 2.25 cars per person in

Kuwait, the need for a modern road network that

can handle heavy volumes of traffic is crucial if

the country is to achieve the aims set out by its

government. In 2004, it was estimated that 85%

of Kuwait’s roads were paved, so clearly the task

ahead for the government remains huge.

As a result, the number of stakeholders

involved in the project are high, with not just

the Ministry of Public Works involved, but also

bodies like the Ministry of Electricity and the

Ministry of Interior. As a result, complications

can arise over the course of the project, as

Boudastour explains.

“For any major project, there are always chal-

lenges you’re going to face, and we face them

every day,” he says. “Especially when it comes

to the coordination needed for any detour

“ACTUALLY, BEFORE THE TENDER, DURING THE DESIGN STAGE, WE GOT ALL THE MINISTRIES AND UTILITIES TOGETHER. THE PROJECT WAS THEN DESIGNED ON THEIR GIVEN MATERIALS (INFORMATION).”

PROJECT PROGRESSn Piers: 258 out of 479

(54%)

n Piles: 3687 out of 4579 (81%)

n Pile cap: 313 out of 499 (63%)

n Detours: 90%

n Diaphragm: 46 out of 250 (18%)

n Segment fabrication: 1805 out of 8395 (22%)

n Segment erection: 817 (10%)

n 10 million safety hours without injuries

n This project leads to a big change in the length of the lanes. After the project will finish it will be extended from 80km -220 km.

A CAST OF THOUSANDSMore than 180,000m3 of concrete has been casted for the project.

Jahra Road Development is one of the largest elevated road projects in the world in which The Ministry of Public Works (MPW) in Kuwait plans to invest $936 million. The expected timeframe is five years to full completion in September 2016. The project’s mainline length is

11.4km comprising three lanes with link roads in each direction and one lane for emergency. The total length of ramps is 7.2km and the total length of service roads is of 17.3km. it also con-tains one 57m long sec-tion of depressed roads having two roundabout bridges.

ELEVATED THINKING

n 80.4% Structures

n 8.6% Others

n 4.1% Electric cables relocation

n 3.4% Water lines relocation

n 3.6% Roads

in traffic. This project is also related to many

ministries, which means a lot of coordination

and official letters that need to be signed before

taking any steps forward.

“Thankfully, we are now in coordination with

all dealers to solve these problems and we’re

trying to manage the traffic.”

With a scheduled completion date of 2015,

the massive project is currently slightly behind

schedule, but Boudastour is confident of making

up the shortfall over the coming months.

“The expected timeframe for the project is

five years. Right now we’ve reached 45% to 47%

of work done. We’re a little bit behind schedule,

but we’re trying to mitigate it and follow the

schedule in the coming months,” he says.

“We’re behind schedule by about 6%, which

is not that big a percentage. But as you know,

we’re dealing with so many services and

ministries. Also, some times, especially when

you’re working underground, you cannot see

what’s there. When you’re doing excavations

and all, you can sometimes find utilities. So we

needed to divert them and for that, we needed

to contact all the ministries to get permission.

That creates a delay. So far, we’ve done all these

things and we just have to have a recovery plan

for this percentage, so as to meet the deadline at

the end of the project.”

Keeping this in mind, the project overseers

have stepped up their efforts to complete their

work on schedule. At present the workforce con-

sists of 2,600 men on site, working in three shifts.

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The project has achieved 8.5 million safety hours

without injuries, he adds, claiming that this is

a result of the team’s commitment to secure all

necessary equipment, such as safety helmets,

footwear and belts for workers to protect them

from injuries.

In addition, workers attend weekly presenta-

tions and lectures to educate them about the

ways to prevent accidents and how to act in the

work areas to stay safe and protected.

At present 80% of the pilings, 15% of dia-

phrams, 45% of abutments, 61% of pile cap,

51% of piers are completed, in addition to

erecting 590 segments that were fabricated in

the precast yard, Boudastour says during the

interview, with a partial handover of the project

scheduled for September 2014, when Phase II

is completed.

Jahra Road will be carried on new pre-cast

pre-stressed segmental viaducts. The precast

segments are short concrete sections connected

together to form the carriageways of the bridges.

These segments are fabricated in pre-cast

yard, which is a large plant fully utilised with

moulding machines and worker’s offices for the

production of the pre-cast segments.

The yard is set up on remote land located

near the Camp Doha areas, with a total surface

area that covers 150,000m2.

It accommodates large-scale pre-casting

facilities such as mould production frames,

different cranes, water tanks, storage and curing

chambers.

Employing the system of segmental pre-cast-

ing provided both production speed and a big-

ger work space in a congested environment. This

ensured the production of the highest quality of

segments, while maintaining colour consistency,

meeting strength requirements and establishing

a bridge that requires little maintenance.

The project engineer explains that the instal-

lation of bridge segments are erected using a

launching gantry that was design especially for

this project.

The gantry weighs 560t and a length of 140m

and is capable of carrying a segment bridge that

weighs 85t and is filed over the bridge.

Two gantries are working and the third will

be installed by the end of the year.

Meanwhile, the cutting bridges are divided

into four categories, with each one manufac-

tured to be installed in the work area; these

segments are formed from four types – each is

erected according to the specific location, and

their weight ranges between 58t to 85t , Boudas-

tour adds.

He’s quick to point out that the complexity of

the project was alleviated by the comprehensive

pre-planning undertaken by all the stakehold-

ers. This in turn has made their job much easier,

though not without complications, he says.

“Actually, before the tender, during the de-

sign stage, we got all the ministries and utilities

together. The project was then designed on

their given materials (information),” explains

Boudastour. “But, even so, when you’re at the

site, it’s different. Sometimes the dimensions

aren’t clear enough or something is different,

so it can happen (that there are delays and

changes).

“But right now, we’re underway in all phases

and we’re going to have a partial handover of the

project if we reach the completion of Phase II

by September 2014,” Boudastour promises. “It’s

going to be going on according to schedule, and

we’ll open other phases in that time,” he insists.

“This project will raise the state of infrastruc-

ture in Kuwait and it will be the first step towards

new modern roads in Kuwait. The government

is expecting it to reduce traffic jams, especially

as it’s located in a central part of Kuwait. It’s the

intersection between a number of hospitals and

Kuwait University and Kuwait Port.

“All parties involved in the project are excited

to see the future of the project and see it achieve

the goals that are planned.” n

ROAD EXISTING FUTURE

LANES ROAD LENGTH AT GRADE LANES ELEVATED LANES ROAD LENGTH

JAHRA ROAD 4 11.3 KM 6 6 11.3 KM

HOSPITAL ROAD 4 0.6 KM 4 4 1.5 KM

GHAZALI STREET 8 0.8 KM 6 6 1.3 KM

AIRPORT ROAD 4 1.0 KM 4 4 1.6 KM

2ND RING ROAD 4 0.9 KM 6 - 0.6 KM

4TH RING ROAD 4 1.2 KM 6 - 1.2 KM

RAMPS - - - 2 14.8 KM

TOTAL LANE LENGTH 80 KM 220 KM

ROAD EXPANSION PROGRAMME

“IT (THE PROJECT) IS CONSIDERED TO BE A SOLUTION FOR TRAFFIC JAMS AND WILL ADDRESS THE GROWING ROAD CONGESTION CRISIS.”

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COVER STORY RAOUF GHALI BIGPROJECTME.COM

Raouf Ghali talks to Stephen White about running the international project management arm of Hill International

KING OF THE HILL

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COVER STORY RAOUF GHALI

While the University of LaVerne Masters

graduate was instrumental in preparing and

issuing the international tendering procedures

that helped to secure much-needed equipment

at competitive prices for the fledgling Armenian

government; helping to scale-up a country’s

power supply where it was in short supply wasn’t

without its challenges.

“For a while we didn’t have electricity,” he

recalls. “There was an average of three hours per

day. We used whatever we could get our hands

on! We got batteries to keep the computers

running, but we got it done. We got through.”

As he oversees Hill International’s operations

beyond the US market almost two decades later,

he is able to empathise with teams based in far-

flung and remote locations. When talking about

those currently helping to bring power and roads

to Afghanistan, there is an appreciation of the

efforts it takes to be effective.

“Afghanistan is an extremely challenging place

to be. I can understand the difficulties they are

going through. I think it’s much harsher than

what we had to go through,” he explains. “All

these experiences over time add up to providing

certain aspects where you can do your work

much more efficiently.”

The last ten years has seen tremendous growth

for Hill. For the past six years of that decade, Gahli

has served as its president and he reveals that it is

currently earning $300 million in turnover (“from

consulting fees”), and employs a 2,800 strong

workforce. The head office for the International

Project Management arm of Hill is in Athens, it’s a

different and surprising location, considering the

Western Europe/US-centric nature of most global

consultancies. Ghali says that it is a consequence

of its Balkan-centric growth.

“If you look at where we operate, the Middle

East is by far our largest region. Geographically

we also have North Africa (a very important

region for us). When you look on a map, Athens

is right at the entrance to the Middle East,” he

remarks. “It’s right across from North Africa

(Cairo is at centre of our operations there). It’s

also at the heel of the Balkans.”

INTERNATIONAL PLAYERGhali has been instrumental from growing Hill’s PM presence in Europe, the Middle East and Africa.

Raouf Ghali has just stepped off the red-eye

from New York and walked straight into

an interview with Big Project ME at Hill

International’s London offices – a smart,

charismatic and witty interviewee – if he’s jet-

lagged he’s certainly not showing it.

“How did I grow my career?” When asked. “I

started my career, I say, a little bit on the wild side!

I was completely crazy. I went into places that

others didn’t.”

The new countries that emerged after the

collapse of the Soviet Union in the early 1990s

were desperately short of infrastructure and

desperate to modernise. However where most

were daunted by the challenges incountries such

as Georgia, Romania and Bulgaria presented,

Ghali saw an opportunity.

“When I went into the CIS and the Balkans in

1993/94 the infrastructure wasn’t even there to do

business,” he says. “It put things into perspective.

(Construction) can positively impact the

economy; it creates jobs; even after completion

it requires maintenance, operation, etc. Most of

all, you’ve left something behind, a structure for

better living or a production facility, etc.”

For Ghali, the country that arguably best

typifies those early years.

“I started with Hill in Armenia, when Armenia

was pretty much at war with Nagorno-Karabakh,”

he explains.

The repercussions of the conflict over the

Nagorna-Karabakh territory in southwestern

Armenia are still being felt today, and the

experience he picked up there continues to shape

Ghali’s approach to running the International

Project Management arm of Hill, two decades

down the line.

“That was probably one of my best, key years.

Difficult years, but I learned a lot and met a lot

of people,” says Ghali, who was responsible for

project and financial control for procurement

on the European Bank for Reconstruction and

Development-funded 300MW thermal power

plant in Hrasdan. “It went back to the basics.

Relying on yourself – technology wasn’t there,

communication wasn’t there.”

“THERE WAS AN AVERAGE OF THREE HOURS PER DAY. WE USED WHATEVER WE COULD GET OUR HANDS ON! WE GOT BATTERIES TO KEEP THE COMPUTERS RUNNING, BUT WE GOT IT DONE. WE GOT THROUGH”

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COVER STORY RAOUF GHALI BIGPROJECTME.COM

The Middle East contributes 40% to 50% of

the Group’s annual turnover with other markets

growing in importance to complement Dubai and

Qatar, where it first made its mark.

“Now the driving force is really Abu Dhabi,

Saudi Arabia, Oman and Qatar. Four points/

markets that are very strong. And also very

different. In the Kingdom, as an example, we’re

involved in healthcare, infrastructure (with our

recent win in rail), and education facilities. In

Qatar we are seeing more and more large projects

in the infrastructure sector rather than the high-

rise buildings we would traditionally see.”

Expanding on Qatar, he reviews the impact

Hill International has had on the country.

“We are quite involved in Qatar,” he enthuses.

“We went through a major development (stage)

and now Qatar is upgrading the infrastructure.

We are working on the Green Line of the Metro,

the Qatar National Museum; and continue to

have several private developments. There is still

quite a lot of local private money being invested –

and we are confident it is sustainable.

“You cannot do all that development for just

the FIFA tournament. Even with pre-trials and

everything else it is only going to be a three-

month period. It is the post-games period (which

is the most important). Qatar has a plan of how

they are going to sustain this expansion – they

also need the infrastructure to go with it.”

Oman, often ignored by a UAE and Saudi-

centric media, is another market that excites.

“There’s a lot of activity there: it’s a totally

different ball game. We are working on the

airport, on hotel development; we’ve just been

awarded a project to support the Minister of

Defence and we’re also participating on Oman

rail,” he reveals. “We’re still in the evaluation stage

but we’re hoping that they will finalise it by the

end of the year or the first quarter of 2014.”

Oman is a major component in the

establishment of a Gulf-wide rail network but has

slipped behind the efforts seen in Qatar (Q-Rail),

the UAE (Etihad Rail) and Saudi Arabia with its

investment in high speed inter-city rail.

“Once we, or whomever else, gets on board,

they will need to start looking at a realistic

“WE ARE LIVING IN SOME EXCITING TIMES. I STRONGLY FEEL THAT WE’RE SEEING A GOOD SEVEN TO EIGHT YEARS OF PROSPERITY AND A LITTLE BIT OF PEACE, I HOPE!”

schedule,” he says. “You can open certain

segments of the rail (for instance), it does not

have to be the entire corridor.

“I think mass transport has been ignored

for a very long time in the Middle East and the

realisation that you need it to become sustainable

as a country and an economy is starting to

come. Mass transport never used to be a feasible

profitable business. It requires volumes and

there is no alternative for long-term viability and

environmental constraints.”

This is especially true in newly created

urbanised areas where fuel is still cheap. How do

you sell it as a proposition?

“Traffic. Time, convenience and

environmental protection. If you are going to be

travelling between one city to the other, and you

have to go by air, you need to be there one hour

before; you land at the airport; and it is usually

way out of the city – and you have to drive back

in. Whereas a train can take you from centre to

centre. Look at Paris-London. Who would fly to

Paris now from London?

“We are building some of the great airports

of this century, right now. There’s Dubai, NDIA,

Oman, etc. And you’ve got Midfield Terminal too.

We are part of the CM team on that as well.”

When people see the word consultancy, they

often imagine teams of desk jockeys, but you

get the impression that, as an organisation, Hill

International is much more than that.

“We are very well engaged in managing

activities on all stages,” says Ghali. “It depends on

what our scope is and this varies from client to

client, from project to project. We can be involved

in the master planning and the implementation.

Sometimes we come in at a much later stage.”

While most of the global players in design

and project and construction management

that are active in the region are able to draw on

expertise from teams based across their offices,

Ghali has encouraged deeper involvement within

Hill International. The company even runs its

own peer review system which frequently sees

teams drafted in from Europe to probe, analyse

and advise on projects in the Middle East – and

vice versa. This cross-fertilisation of ideas and

practices is essential as Hill International strives

to push the quality of execution upwards.

“You’re being reviewed and the next time you

are reviewing somebody else. It not only keeps

everybody on the edge but it is an efficient way of

sharing knowledge amongst teams,” he explains.

“Take Latvia Library, for instance, and the

Grand Egyptian Museum: two different worlds

but yet there are a lot of things that are in

common, the uniqueness of the building, for

example. Latvia Library, for instance, is not just a

library but they have put a lot of old artifacts such

as old books, etc,” he continues. “That means

that you have to have climate control rooms (for

example). It has to be user-friendly and well-

engineered. Both are public buildings. Both have

“I think in general 2014 is going to be a year where we will see economic improvement globally. Spain is really waking up; there’s been a lot of transactions; the banking system is starting to show signs of life again. I’m not telling you it’s going to be booming, but the contraction is stopping. It’s been six/seven years since the recession started, so this is not going to be an overnight change. But prices of assets have come down; there is a huge amount of cash that needs to be invested and investors are eager to get back in the game early to take advantage.

“You’ve got markets like Egypt – if it continues to stabilise, you’ve got the UAE and Kingdom pledging money that has to go into construction – you’ve got Libya which I think will hopefully start off in 2014.

“Then you’ve got Iran that seems to be coming towards the western countries. You’ve got scepticism but on both sides. I think it’s positive however. The tension that has been clouding us over the last decade is lifting. If both sides start showing some trust and faith, then things can start to get better. Now how does that effect oil prices? I’m not an expert, but logic would show that is going to be pressure on prices coming down.

“Look at what Iraq has done. We have just signed a $53 million contract with the government of Basra. The contract scope is to review Barsa’s masterplan needs and implement them. We expect a mixture of projects to include educational facilities, roads, bridges, etc. With Iran calming down. Everything calms down. We are living in some exciting times. I strongly feel that we’re seeing a good seven to eight years of prosperity and a little bit of peace, I hope!”

GHALI LOOKS AT THE YEAR AHEAD

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COVER STORY RAOUF GHALI

high security – and yet you have to allow free

movement and flow for the guests. There are a lot

of common similarities people would not always

think about.”

The peer review meetings bring the top three

people from two or three projects together with

Ghali and the regional manager joining the

meeting: “The team comes in and present the

project status and the major challenges they are

facing. Then, as a team ,we explore ideas: have

you tried this?, or, we had a similar problem and

we found this solution worked.”

With full site visits frequently required and the

removal of key personnel from projects essential,

it would be understandable if the peer reviews

placed drag to the pace of construction. Rather

than stretching out the project management

process, Ghali argues – convincingly – it has to be

said that the reverse is often the case.

“It speeds things up. You find out that the

guy – and I use this only as an example - who

handled the Qatar Museum is talking to the guy

on the Egyptian Museum and asked whether he

had a similar problem, do you know of somebody

that can help? Yeah, I’ve got somebody on the

team. Can you spare him for a ten days? Sure.”

Backing up the project teams is a technical

core team for each region. Ghali describes them

as the ‘back-office’. They act as another level to

Hill’s quality control.

“They shadow most of the difficult projects

when they are in the early design stage. They have

seen a lot of these projects and bring in a lot of

lessons learned to the table,” he says. “This is part

of our service – we typically don’t charge for it. It

is also part of our own quality plans.”

Creating continuity and understanding

between the teams has been an asset as the

International PM Group has grown. He adds for

any given country, Hill has now reached a size

where it has enough staff from that country to

form the nucleus of its project teams.

“This is the starting point and then we start

slowly recruiting. In Turkey, for example, we’ve

probably got a good 60 to 80 Turks working for us.

If we get a new project then I can transfer them

back into Turkey with international experience

and the “Hill culture”.

Hill’s progress in the Middle East is notable

for its two centre beginning. Straddling both

Dubai and Doha, Ghali says that the move was

a deliberate attempt to mitigate against risk.

The company also started pushing into North

Africa in 2006 just as every project manager and

consultant with a passport descended on Dubai.

“Never have your business be dependent on

any one specific location or client,” he says. “I

always try to go where everybody else is not! In

2006, everybody was flocking into Dubai and

the UAE. We were there – and I thank my lucky

stars we were – but that’s when we made a strong

push for North Africa. If everybody is going to

one place, it is going to get crowded and you

need to be thinking of going somewhere else. If

you’re in at the beginning you take a lot of the

work initially but then you share. That’s how the

market moves.”

He adds: “We’ve been quite successful in

spreading throughout the Middle East; very

successful in spreading out in North Africa. We

are present in all of the North African countries

now with the exception of Tunisia where we are

now looking at entering. We’re doing very nicely

in Algeria with great growth potential.”

He was told about Dubai’s successful Expo

2020 bid as he was leaving New York. He believes

the win is well deserved.

“It’s very, very exciting. I believe they already

have infrastructure for it. Nothing was really

moving until they secured bid, now it’s going to

be like the horse races where everybody starts

(gestures to signify the start of the race). Look at

what Dubai has done. The 2020 win is a vote of

confidence by the international community that

the international markets still believe in Dubai. It

has become a major city of the world over the last

15 years. They’ve done a great job so far, and I’m

sure they will do a great job of this event.” n

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BIGPROJECTME.COM

On 25 November, 2013, Big Project Middle East celebrated the achievements of

the regional construction industry in a

glittering ceremony at Jumeirah Emirates

Towers Hotel.

The Big Project Middle East Construction

and Sustainability Awards of Excellence 2013

saw more than 400 industry professionals from

all across the Middle East gather together to

celebrate the achievements of more than 60

nominees across 17 categories.

The awards saw some of the region’s most

exciting and dynamic construction projects and

A CELEBRATIONOF EXCELLENCE

Big Project ME hosted its annual awards dinner at the Jumeirah Emirates Towers Hotel, bringing together the great and good of the regional construction industry

BIG PROJECT ME AWARDS 2013

“WE DON’T WANT TO BUILD JUST ANYTHING, WE WANT TO BUILD BUILDINGS AND STRUCTURES THAT DISTINGUISH THEMSELVES FROM THE REST OF THE MARKET”

firms recognised for their contribution towards

the growth and development of their industry,

while the sterling work done by individuals in the

industry were also recognised.

Held alongside the biggest The Big 5 show

in recent memory, the awards were perhaps

symbolic of Dubai’s triumphant return to the

spotlight of global construction.

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ICONIC STRUCTUREOF THE YEAR WINNER: ETIHAD TOWERS BY HILL INTERNATIONAL

The winning structure is a five-tower colossus that has

quickly become one of the defining landmarks of the

Abu Dhabi skyline.

Not only is it a good looking structure, it is also a

great example in how to build at scale.

Under the guidance of the project management

consultancy: the project owner, contractor, facility

manager, hotel operator, district cooling services

provider, bank/financier and real estate/property

manager were all involved from the initial planning

stages; resulting in a successful project

“We’ve been very successful building some of

the landmark structures in the region,” says James

Duncan, vice president of Hill International.

“We want to build on our successful presence in

Abu Dhabi, which we’ve had for the last 25 years.

There is a lot of exciting news coming forward,”

he tells Big Project ME, confidently predicting a

fruitful and exciting few years ahead for the project

management consultancy as it looks to ride the wave

of optimism generated by Expo 2020.

OUTSTANDINGDEVELOPMENT OF THE YEARWINNER: SOWWAH SQUARE – GOETTSCH PARTNERS

The winner of this year’s outstanding development of

the year features over 290,000m2 of office space and

clocks in at a mammoth 450,000m2 in total area.

It is also the new headquarters for the Abu Dhabi

Securities Exchange, making it a central hub for

business in the UAE capital.

Surrounded by four office towers and overlooking

the Abu Dhabi coastline, Sowwah Square certainly

possess the ‘wow’ factor to be called ‘Outstanding

Development of the Year.’

“It’s outstanding that a commercial development has

been recognised,” says Matthew Burgland of Goettsch

Partners after collecting the award on the night.

“It’s been about a year since the tower was

established and it’s now central for business in Abu

Dhabi,” he adds.

“As partners, we’ve worked extremely hard in Abu

Dhabi and the quality of projects that we’ve done

speaks for themselves.”


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ENERGY EFFICIENCYPROJECT OF THE YEAR

WINNER: PETROLEUM DEVELOPMENT OMAN

Petroleum Development Oman is currently installing a series

of systems inside and outside a managed a 35% reduction in

interior water use and a 50% reduction in potable water use as

it heads for LEED certification.

It is also using Xeriscaping, a landscaping method that

makes routine irrigation unnecessary, setting a standard for

large educational campuses across the region

“This award is a great achievement for the project team.

The whole industry is aiming for sustainability and this

new school for the company addresses all the aspects of

sustainability, such as water conservation, landscaping and

creating a better future. We are looking to work on master

plans that include more houses following a similar design.”

CIVIL DEVELOPMENTOF THE YEARWINNER: CHINA STATE CONSTRUCTION ENGINEERING CORP – IMPROVEMENT OF EMIRATES ROAD

The winner has made a significant impact to the completion of

the city of Dubai’s aspirations of becoming a major logistical

hub as well as putting down the groundwork for growth

potentially spurred on by the EXPO 2020.

The billion dirham work included 33km of roads, two

interchanges plus a series of upgrades

“This project is not just ‘science’. We believe it’s

confirmation of the effort we’ve put in as a team, with the

client, RTA and the consultant, SBS Smith,” says Yu Tao,

president and CEO of CSCEC Middle East.

WINNER: EMPOWER

By tackling the challenge of offering green power and water to

a large community, Empower has helped save 32.1 megawatts

and 147,000 tonnes of CO2 per annum in Dubai.

Empower’s work on DIFC’s district cooling systems was not

a coincidence, CEO Ahmad Bin Shafar tells Big Project ME.

“I strongly believe that our company is always focused

on improving our work, on focusing on research and

development,” he says.

“We recognise ourselves doing things in a way that is better

than the way that others are doing things. We look to save

time, save costs and save management. That’s how we see

ourselves. We don’t want to do things the regular way. We

want to do it in a better way.” BEST WATERCONSERVATION PROJECT


CONSTANT FOCUSAhmad Bin Shafar says Empower’s success has been built on constant focus on improvement.

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WINNER: AECOM AND THE PASSIVHAUS VILLA

The judges chose to reward a company and project that can

be replicated and scaled up across the region for this year’s

Green Building Project of the Year award.

Drawing on engineering and design from Germany, the

result is an ultra-low energy building that requires little energy

for space cooling and is the first of its kind in Qatar.

“There has been growing awareness and momentum

lately when it comes to sustainability,” says Jason Smith,

environmental planner, Design+Planning, Abu Dhabi, for

AECOM. “It’s not just ‘nice to have’, it’s become a must-have.”

“I think what seperated us from the other nominees was that

we had a small scale project that was easily understood,” he

tells Big Project ME. “The project we’ve won the award for will

be the benchmark for other projects.”

DEVELOPER OF THE YEAR

GREEN BUILDINGPROJECT OF THE YEAR

WINNER: SINO GULF

This year’s winner is a developer who has made its mark on

the Abu Dhabi skyline by bringing to fruitition a number of

‘A-grade’ commercial properties that can happily claim to be at

close to full occupancy.

“We’re very happy to win this award,” says Andrew Clout,

managing director of Sino Gulf. “We’re sure we’re deserved

winners.”

“(This award) is about what we want to achieve going

forwards, in terms of more Grade A buildings in Abu Dhabi

and Dubai and other markets,” Clout adds.

“We don’t want to build just anything, we want to build

buildings and structures that distinguish themselves from the rest

of the market. And hopefully, we can come back to win two or

three awards next year!”


GROWTH PLANSMustafa Alper Alhan says Tabanlioglu Archi-tects will be focusing more on Dubai in 2014.

WINNER: TABANLIOGLU ARCHITECTS

Tabanlioglu has successfully executed the design for projects

across the entire Middle East region.

The architecture firm has worked on a wide range of

building types from housing, offices, mixed-use, public and

cultural buildings and industrial projects to high-rise.

Having recently established an office in Dubai, the firm

recently won its first project in the Emirate, the Crystal Towers

on Jumeirah Beach Residence Walk.

“It feels good to be awarded,” says Mustafa Alper Alhan,

project services, Dubai Representatives Office. “This is our first

Dubai project so it’s a big surprise.”

“We’ll be focusing more on Dubai in 2014 and will also

be looking to get more projects in the region started. We have

the Qatar Lusail Museum in Doha as well, so we have plenty

to do,” he adds. “While 2013 was good, we expect more in

2014.”

ARCHITECT OF THE YEAR

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WINNER: ASTAD

ASTAD has contributed the only LEED platinum student housing

in the world which features two complexes with a total of

twelve (12) buildings remain to date.

They also represent one of the highest concentrations of

independently registered LEED platinum buildings in the world.

“It’s a great feeling to win this award. It counts as one of

our achievements for this project,” says Ibrahim Faisal Al

Haidos of the Qatar Foundation.

“This is the vision of the Education City, to have a world

class sustainabile city. We are going to have minimum

certification for our projects and this project is trying to

promote the message of sustainability to students.”

DEVELOPER OF THE YEAR

WINNER: HYDER CONSULTING

The winning consultancy is truly active across the region and

now counts on the Middle East for almost a third of its total

business.

While other practices are moving more and more into

project management, this consultant has concentrated in

enhancing the region’s infrastructure bringing global knowhow

to the local market.

“We measure ourselves against our peers. There are a lot

of good consultants out there,” says Mario N Pishiri, managing

director – Property, at Hyder Consulting. “Winning this award

is testament to Hyder’s position in the market place.”

“With Expo 2020 awarded, the World Cup in Qatar,

and Saudi Arabia’s development plans, there are plenty of

opportunities to succeed, but our focus will remain on our core

competencies of engineering and architectural project delivery,

within core territories with our key clients and partners.”

WINNER: ALEC

The winner of this year’s award scored multiple successes as it

series of projects reached completion, including the completion

of the Arrivals and link tunnel within Abu Dhabi International

Airport. Furthermore, the contractor passed three million man

hours without any lost time due to injury on Concourse 4 in

Dubai International Airport.

It sets a wonderful example of putting safety first and still

delivering high quality projects.

“As a company, we’ve achieved good understanding of

what our clients need. We do it in a simple way, and not make

it complicated,” says Kobus Dreyer, commercial director at

ALEC, the Dubai based contractor.

“2013 was a good year for us, but it could have been

better. There’s a lot of positive sentiment about 2020 and we’re

in the final process of signing up some really big projects. It’s

shaping up to be an exciting time for us.”

SUSTAINABLE SOLUTIONOF THE YEAR

CONSULTANT OF THE YEAR

CONTRACTOR OF THE YEAR


GLOBAL KNOWHOWMario N Pishiri, MD of Property, says Hyder’s global excellence base has kept it ahead of its compeition.

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WINNER: ETA STAR ENGINEERING AND CONTRACTING

ETA Star Engineering and Contracting has delivered and is

delivering world class projects as per the clients requirements

and contributed to client success, working alongside some of

the GCC’s biggest main contractors such as AECOM, Hochtief

and on projects for Barwa and Lusail.

“ETA Star has had a great year in Qatar,” says Ashok

Agarwal, senior executive director at ETA Star Engineering

and Contracting. “This award is a kudos to the people involved

in the making of iconic structure. We are one of the biggest

contractors in the Middle East and India, so we’re hoping for

many such awards in the future!”

WINNER: CONALL DOHERTY FROM BURO HAPPOLD

Doherty has only been a structural engineer for three and

a half years but has been described as an integral member

of the site supervision team at the Louvre, Abu Dhabi and

has ongoing involvement in the design and construction of

a number of projects in the King Abdullah Financial District,

Riyadh, Saudi Arabia.

“I think this award is generally testament to the

opportunities that are on offer in the region. It’s been fantastic

coming here as a young engineer, the projects and experience

that they can provide, along with the general exposure, has

been fantastic,” enthuses Conall Doherty. “It’s such a privilege

and I’m quite shocked to be presented with such a prestigious

award.”

WINNER: KEO CQS

Comprising a team of 1,700 staff which have provided pre

and post contract cost consultancy services on a series of

buildings, infrastructure projects, KEO CQS also has the

distinction of working on the first major stadium in Qatar.

One of our selling strengths is that we’re part of a

multidisciplinary practice. So when we’re working as quantity

surveyor’s within KEO, it means that we just have to go to

the next desk to get the information. but also, acting as an

independent quantity surveyor, we’ve always got backup

technically. If we don’t get answers, we can go to our own,”

says Mark Grogan, manager – contracts and quantity

surveying services division, at KEO International Consultants.

“We’ve got great depth in Middle East experience,” he

adds, highlighting it as a reason for KEO’s regional success

QUANTITY SURVEYOROF THE YEAR

MEP CONTRACTOR OFTHE YEAR

YOUNG ENGINEER OFTHE YEAR


YOUNG ACHIEVERConall Doherty, from Buro Happold, picked up the award for Young Engineer of the year.

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40 DECEMBER 2013MID

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WINNER: HILL INTERNATIONAL

This year’s award was given to a major player in the market

that has delivered the very best project management services

to large scale developments. Hill International has received

new commissions to provide services for some exciting new

developments, including the Qatar National Museum, Jabal

Omar Development, Riyadh Metro, Qatar Metro Green

Line and Abu Dhabi’s Midfield Terminal in 2013 and most

impressively, managing the Oman International Airport project

which is well on track to reach its completion date.

“I hope we can keep on performing,” says Mohammed Al

Rais, managing director of Hill International. “Our next focus

will be on 2020.”

WINNER: ANDREAS GEORGIOS ILIOVITS OF MOSART

Iliovits led his team at Presidential Palace of Abu Dhabi which

were subcontracted to produce the natural stone for the

project. Dealing with high volume in a short time of execution,

the winner demonstrated the ultimate in quality control and

project management.

“It’s been very hard work,” Iliovits says. “Especially in the

award for project management. It’s been a very sophisticated

job, with very big quantity of stone. We’ve very happy to be

here and to have the award.”

“We’re fully booked till the end of 2015 with residential

and other palaces, as well as with work on pipelines for Abu

Dhabi International Airport and other prestigious projects.”OUTSTANDING PROJECT MANAGEMENT CONSULTANCY

OUTSTANDING ACHIEVEMENT IN PROJECT MANAGEMENT AWARD

FAMCO was awarded the Construction Equipment Company of the Year by Big Project ME’s sister publication, Construction Machinery Middle East, in recognition of its constant efforts to improve people, processes and machines. It has acquired businesses, invested in new facilities, expanded to new countries and also improved principal’s offering for the region.

“We did a great job this year. All the plans and goals we had, we put them into reality. We’re on the right track and we’ve invested a lot in our facilities, people, expansions and acquisitions. It’s been a year to remember for FAMCO,” says Mamdooh Diyab, divisional manager, Rental and Leasing Division at FAMCO.

“There are some plans to be announced soon, and also the East Africa business (to focus on).” n


QUALITY CONTROLAndreas Georgios Iliovits of MosArt, poses with his award.

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MARKET REVIEW TURKEY BIGPROJECTME.COM

Big Project ME finds out why Turkey’s construction is determined to crack the GCC market and why they’re confident of doing so. Gavin Davids reports

THE YOUNG TURKS

Of course, we’ve since seen a sea-change in

the way projects are undertaken, with increased

government regulations and greater caution from

both developers and contractors. And while the

situation has undoubtedly improved, we still see

occasional differences of opinion and conflicts that

need legal recourse.

What most construction stakeholders put this

down to is a lack of understanding between all

parties. While they may speak the same language

and share the same objectives, it’s often difficult

for contractors and developers to relate to one

another.

However, it now appears that there is a segment

of contractors and construction companies that

have noticed this gap and are rushing to fill it.

Ever since the GCC began its building

boom back in the late 1990s and early

2000s, the region has become something

of a honeypot for the global construction

industry, with both the international giants and

the regional minnows making a beeline for the

cities of Dubai, Doha, Riyadh and Jeddah.

Following this surge in investments from

the region’s governments, there have been the

inevitable problems that crop up when the pace

of construction reaches warp speed. When this

culminated in the collapse of the residential

market bubble and hundreds of delayed

and ‘on-hold’ projects it became clear to the

authorities that the old ways weren’t working

any more.

Having already snapped up some of the most

prestigious mega-projects in the UAE, Turkish

construction firms are well on their way to making

themselves the preeminent force in the regional

construction market.

A recent report published by a senior

researcher at the International Institute of

International Political Studies found that since the

early 2000s, the relationship between Turkey and

the Gulf states has improved significantly, with

cooperation developed in a number of domains.

One of these domains is the construction

industry, says Valeria Talbot, the senior researcher

at ISPI who wrote the analysis.

With Turkey being the second largest

exporter of construction in the world (after

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MARKET REVIEW TURKEY

TURKISH DELIGHTThe GCC is considered the next major growth market for Turkey.

“TURKISH PEOPLE ARE MORE FLEXIBLE THAN EUROPEANS WHEN IT COMES TO TOUGH, DIFFICULT CONDITIONS. IT DOESN’T MAKE US AFRAID”

What has been noticeable is that the trade

relationship between the GCC and Turkey is one

that flows both ways, with $6.5 billion invested

from the GCC into Turkey, with the UAE leading

the way with 56% of the investment, a report by

the Oxford Business Group has said, quoting the

National Commercial Bank of Saudi Arabia.

Interestingly, Turkey’s investment into the GCC

has arguably been more significant, with the UAE

alone receiving $6 billion.

Leading this investment charge has been the

construction sector, which has zeroed in on the

huge number of infrastructure projects that are in

various stages of development.

Bora Can Yildiz, president of EID Construction,

tells Big Project ME that it’s no surprise that

the GCC has emerged as one of Turkey’s main

markets, given the long history between the

country and the region.

“We have two faces, an Asian face – a Middle

Eastern face – and we have a European face.

China), there has been a growing sense that the

GCC could be the next major growth market for

the Eurasian state.

“In an era of euro zone crisis and trade

contraction with the European Union – which

is the main Turkish trade partner and source of

foreign direct investment – Middle Eastern markets

represent a significant alternative for Turkey,”

Talbot explains in her analysis.

“Trade volume with Gulf countries, and the

Middle East in general, is expected to increase

as economic and trade relations have great

potential to be capitalised on, also taking into

account the demographic growth that both

Turkey and Saudi Arabia, the biggest market in

the GCC, are experiencing.”

We used to live together with our brothers for

hundreds of years. So, for all Turkish companies,

including construction, machinery, export,

agriculture – whatever – the GCC is of big interest,”

he explains.

“Although Turkey has a strong relationship

with the European Union, we were not accepted

in ‘the club’ in previous years and we were always

on hold. This gave Turkey a chance to remember

what it had forgotten before, a chance to turn back

to its roots.

“So, we’ve grown our economic relations over

the last two decades with the Middle East, and this

has brought fresh and strong economic growth to

Turkey,” Yildiz asserts.

The figures bear this out, with estimates

showing that there are some 500 Turkish

companies that have operated in Saudi Arabia,

where in the first half of 2012 they worked on

projects worth $12.1 billion. Meanwhile, in Qatar,

by the end of last year, Turkish firms had carried

out projects worth another $12 billion.

That’s not all. Now that work on the World Cup

projects has begun, there has been significant

interest from Turkish construction firms in the

gas-rich Gulf state.

Projects estimated to be worth between $25

billion and $30 billion are up for grabs over the

course of the next decade, the president of the

Turkish Contractors Association (TCA) says.

“Considering Qatar’s share among Turkish

contractors’ business volume has been around 5%

for the past 40 years, according to an optimistic

scenario, it is possible to estimate that Turkish

contractors will undertake a total of $25 billion to

TURKEY AND QATAR:n $200 billion

Qatar infrastructure investment ahead of FIFA World Cup 2022

n $1 billion Total value of Turkish contracts in Qatar (2012)

n $25-$30 billion Projected worth of construction projects for Turkish firms ahead of FIFA World Cup 2022

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MARKET REVIEW TURKEY BIGPROJECTME.COM

$30 billion worth of business in the Qatari market,”

Emin Sazak says.

As mentioned previously, Qatar was already an

important market for Turkish contractors looking

to expand their overseas presence, as evidenced by

Qatar’s 5.2% share among the projects undertaken

by Turkish contractors between 1972 and 2012.

However, by the end of 2012, the total value of

Turkish contractors’ projects approached $1

billion, Sazak says.

Qatar’s infrastructure investment spending

ahead of the FIFA World Cup in 2022, estimated

by leading professional services group Deloitte

to reach around $200 billion, has opened up new

opportunities for other Turkish business people

as well.

The Qatari government has already invited

Turkish contractors to participate in the

construction of a number of infrastructure,

stadium and hotel projects planned for the giant

international event.

“Frankly, the UAE, Qatar and Saudi Arabia are

the most promising markets for us Turkish firms,”

says Burak Kizilhan, the business development

manager for AE Arma-Elektropanҫ, a Turkish

MEP firm that has worked on a number of major

projects in Dubai.

“We’re looking to be awarded mega-projects

and for the last few years, only these countries

have a lot of them. Apart from that, there are of

course a number of Turkish companies who are

active in Kuwait, Oman and Bahrain, but it is these

(first) three countries that are the most important

markets for us.”

Yildiz agrees with this and adds that from a

personal point of view, moving to either Dubai or

Doha made sense for his firm as it not only gave

them access to the three major markets in the

region, but also allowed them to set up a base from

which they could target other expanding markets,

such as Iraq and North Africa.

“We didn’t want to stay only in Turkey, we

wanted to take our business outside. We had

projects in Kazakhstan, Russia and recently, in

Libya. But then we went to Basra City and we

began to grow there. We now have $250 million

worth of ongoing work in Iraq,” he explains.

“What we did in previous years was that

we opened a contact office in Dubai and we

did try to manage our relationships. We’re still

doing that through our Dubai offices. It is a good

base for us, because not only are there Middle

Eastern companies (there), but also international

companies that are working in the Middle East,

they have their bases there. So it’s very easy to

communicate and carry on the relationship with

these countries, from Dubai.”

So what is that allows Turkish firms to succeed

in the GCC? Both Yildiz and Kizilhan have

strikingly similar theories on this.

“Actually, everybody asks me this question,”

says Kizilhan. “First of all, it’s our culture. That

is, Turkish and Middle Eastern culture. That’s

important for the construction industry, where

you’re dealing with manpower and not with

computers,” he explains.

“The most important thing is that we can

literally decide in seconds. We don’t deal with a

lot of paper, we focus on the construction on the

operation. We finish earlier than others and you

can see examples of this all across the GCC.”

Yildiz points out that Turkey’s biggest natural

resource is its pool of young, educated manpower

that is ambitious and flexible enough to work in

conditions that might phase older, more cautious

competition.

“We have a very big body of educated

manpower in Turkey, and this competitive

environment of construction, and the international

expertise gained after the 70s and 80s has taught

Turkish firms to be competitive, to be fast and to

work with a young organisation. When we brought

this experience to the Middle East, it helped and it

worked,” he asserts.

“Turkish people are more flexible than

Europeans when it comes to tough, difficult

conditions. It doesn’t make us afraid. In any part

of the world that you go to, in the Middle East,

in North Africa, in Mid-Asia, you’ll find Turkish

companies and especially Turkish construction

companies, because of their challenging, brave

approach and their ability to adapt.” n

Dubai-based real estate developer Damac Properties said it has awarded a $288 million contract for the construction of a hotel complex to the Dubai branch of Turkish builder TAV Construction.

As the main construction contractor for the project, Dubai-based TAV Tepe Akfen Investment Construction and Operations will build the complex, including a luxury hotel and serviced residences, in the Burj area of Dubai in 33 months, Damac Properties said in a statement.

This is the largest single contract that Damac Properties has awarded for one of their projects.

TAV WIN

UNDERSTANDINGBurak Kizilhan says that shared culture is important for an industry dealing with “manpower not computers”.

TURKEY AND QATAR:n 70% increase

in H1 2013 Turkish building and contracting sector

n $11.6 billion in H1 2013 Total Projects value

n $27.2 billion Value of projects realised in 2012

n 101 Countries served by Turkish construction

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MASTER DEVELOPERS BIGPROJECTME.COM

Big Project ME talks a number of master developers in Dubai to find out how the real estate market is going to change in the wake of the awarding of Expo 2020. Gavin Davids reports

OVERCOMING FEARS

Prior to the announcement that Dubai

would be the host city of the World Expo

in 2020, the common consensus was that

the city’s real estate market would see a

significant upswing in terms of valuation and

pricing.

While it can be argued that this was always

going to be the case, with the market already

climbing back up after the collapse in 2008, it’s

equally difficult not to say that the Expo will have

a major impact on the market.

With hundreds of thousands of jobs expected

to be created over the course of the next seven

years, across all walks of life, there are going

to be a lot of people in Dubai flush with cash

and looking to spend it. This obviously hasn’t

gone unnoticed, and already the rumours and

whispers about rent increases and property

prices have begun. So prevalent were these

concerns, the International Monetary Fund

(IMF) was compelled to issue a statement

warning Dubai’s government to make sure its

property market is being driven by ‘fundamental

factors’ and not speculation.

“When you begin to see very rapid increases

in any asset prices, then you just need to be

prepared to act,” says Masood Ahmed, the IMF’s

director for the Middle East and North Africa.

With housing prices in the emirate jumping

by more than 20% over the last year, perhaps

“LOOK AT THIS MARKET WHEN IT WAS PREMATURE, YOU HAD A LOT OF SPECULATORS, A LOT OF RISK ELEMENTS. TODAY, THE WHOLE SITUATION IS DIFFERENT”

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prices,” he explains. “I think, between 2010, 2011

and the growth in 2012, the market once again

found its feet when people got out of the fear

psychosis and we moved towards fair value.”

It’s an interesting school of thought, and

one that real estate agents appear to agree with.

According to a Cluttons report, the buoyancy in

Dubai’s residential market persisted through the

third quarter of this year, with average capital

values rising by 8%, following on from the record

23% growth in values in the second quarter.

The latest increase leaves values 25.7% below

the Q3 2008 market peak, 47.6% above the bottom

of the market in Q2 2009 and 52.3% higher than

this time last year.

Meanwhile, the emirate’s rental market has

also continued to record positive growth, albeit at

a slower pace than that experienced during Q2. In

Q3, average residential rental values rose by 3%,

following on from the 8.2% increase in Q2.

“Looking forward to the end of the year, with

Dubai winning the rights to host the World Expo

in 2020, we expect to see heightened investor

interest as Dubai’s real estate recovery drives

further inward investment, particularly from the

GCC region and broader Middle East,” the report

explains.

“We have already seen this trend materialise

in the results of our 2013/14 International Private

Capital Survey, with HNWI from Manama

and Muscat favouring Dubai over London

as a primary global real estate investment

destination.”

Mat Green, head of research and consultancy

for the UAE at CBRE Middle East, points out

that the last edition of the Expo, held in 2010 in

Shanghai, attracted around 73 million visitors, a

record for the event.

“The USA pavilion alone attracted over 7.3

million visitors during the six month period, more

than Dubai’s total hotel guests during the whole

of 2007,” he says in a CBRE report.

“However, according to Chinese Government

figures the vast majority of visitors to the Expo

“WE ALL TALK ABOUT THE CRISIS IN 2008, BUT JUST AS THE BOOM WAS EXCESSIVE, THE FALL WAS ALSO EXCESSIVE. PRICES FELL FAR BELOW FAIR VALUE BECAUSE OF THE PSYCHOLOGY OF FEAR”

the IMF is right to warn of the risk of another

‘property bubble’ being formed.

Further compounding fears after the

Expo announcement was that the massive

megaprojects being planned and announced

would cause prices to be raised as landlords

and developers took advantage of the rekindled

interested in the market.

Therefore, Big Project ME thought it would

be interesting to hear from master developers

themselves to find out how they view the

situation and how they intend to react to it.

Kabir Mulchandani, the CEO of SKAI

Holdings, is a man who has seen it all, having

faced allegations of fraud at the height of the

collapse, to rebuilding his empire with mega

property deals worth more than $1 billion. His

latest venture is the $1 billion Viceroy Dubai

Palm Jumeirah.

He tells Big Project ME that what’s happening

with the property market isn’t so much a revival

as it is a natural correction.

“Obviously there are many reasons that

contributed to the revival, but let’s start with

where the problems were. We all talk about the

crisis in 2008, but just as the boom was excessive,

the fall was also excessive. Prices fell far below

fair value because of the psychology of fear. Just

as greed tends to add irrational exuberance, the

excessive fear caused an excessive depression of

FINDING ITS FEETKabir Mulchandani says that the market has moved towards fair value for all.

BIGPROJECTME.COM

event were Chinese nationals, with only roughly

6% of the estimated 73 million visitors were

actually foreign tourists.

“Whilst this is still a significant number of

visitors, it does suggest a need for caution in

respect of Dubai’s future development plans

which must remain anchored to actual supply

and demand dynamics, rather than building just

for a single event,” he warns.

Mulchandani adds that while Dubai’s growth

has been compounded by the UAE recovering as

a whole from the slump, he says that a lot it can

be attributed to a natural recovery.

“As I said, in some point in 2012, we reach fair

value. Now the growth has come in because of the

general optimism in the UAE. The real economy,

the other sectors besides real estate, are seeing a

massive recovery across the board. That’s lead to

the recovery in the last one year,” he explains.

“(The Expo) is going to have an impact.

It’ll have a real impact on the economy. On a

conservative estimate it will create 250,000 fresh

jobs. People are optimistically talking about even

a half a million jobs or 750,000 jobs.

“Those jobs will lead to demand for residential

units, office space, all of that will come in. So

there will be a real benefit. I think of course that

this will lead to some speculation as the market

will have a bump, just on the announcement of

the Expo itself.”

This concern over speculation is a common

worry amongst real estate experts. However,

Yousuf Kazim, the general manager of

Jumeirah Golf Estates, another master planned

development in Dubai, says that he’s seen a shift

ESTATE LIVINGYousuf Kazim says there are changes to the way developers approach projects.

MASTER DEVELOPERS

in the way investors and the government are

approaching projects, which will alter the way

developers will be doing business.

“I looked into this market a long time and

I’ve seen all the cycles. I believe that with RERA

and the regulations that have been put in by the

Land Department, it’s now really well regulated.

The market is now more mature, the customers

are more mature, the developers and the sub-

developers, they’re all more mature.”

“Look at this market when it was premature,

you had a lot of speculators, a lot of risk elements.

Today, the whole situation is different. There’s

more reality, more realisation of the project. It’s

definitely a win-win for the developer, it’s a win

for the customer. It’s even a win for the master

developer,” he asserts.

“I believe that RERA is doing a great job, and

by having a regulated real estate market in Dubai,

that will put us in a very good position, and I

believe that this is a very important and crucial

element in Dubai’s success.” n

INVESTOR INTERESTAccording to Cluttons, the Expo will encourage inward investment.

‘Like’ us on

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SPECIAL FEATURE PREFABRICATION BIGPROJECTME.COM

With construction activity prepared to witness an all-time high in the Middle East, Big Project ME looks at

the oft-overlooked construction technique that proponents feel will go a long way in preparing the

region for the mega-events of 2020 and 2022

PREFABRICATING THE FUTURE

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SPEEDY BUILDThe 30-storey Broad Sustainable Building in China was built in a mind-twisting 360 hours.A

recent study by EC Harris, titled ‘Middle

East Major Construction Programmes:

Mitigating the Delivery Risk’ has identified

more than 117 projects, worth over $1

trillion, across the GCC region, planned for

completion by 2030.

These developments are primarily in the

retail, real-estate, leisure, health and education

sectors, and will it require 1.2 million additional

labourers to deliver these projects between 2014

and 2019.

Some of the noteworthy mega-projects to fall

under this bracket include the unified GCC rail

network and the infrastructure required by Qatar

to host the FIFA World Cup 2022 (and we can now

add the Expo 2020 to the list).

Dubai’s need for infrastructure is massive.

Sheikh Ahmed bin Saeed Al Maktoum, head of

Dubai’s Supreme Fiscal Committee had, at the

Dubai Airshow last month, revealed the emirate

would require an investment of $8.1 billion if the

city won the bid to host the Expo 2020.

With less than a decade left for Qatar and UAE

to host the respective world events that will shape

and define their global positions in the future,

there is a rising demand for speedy, good-quality

infrastructural development in both countries.

This could, potentially, exert pressure on

the region’s construction sector, and it becomes

essential that traditional construction practices

work in conjunction with modern, evolving

techniques to fulfil the demand placed on the

industry.

Prefabricated construction could fill that

gap. Used extensively around the world for

decades now, off-site fabrication refers to, as

the name suggests, the manufacture of building

components at a place away from the actual site

of construction – usually, a factory that specialises

in the creation of modular systems.

Generally viewed as an effective cost-cutting

measure, prefab is now considered to be an

ideal option for the creation of units such as

bathrooms, hangars, factories, sheds and even

fully-furnished buildings.

“I truly believe there will be a time when

construction for Expo 2020 and the FIFA

World Cup 2022 will have to be sped up,” says

Sadig Abuagla of Unipods LLC, a company

that specialises in offsite turn-key solutions

for bathrooms and kitchens in residential and

commercial developments.

“To meet the construction demands as soon

as possible, prefab structures will be the preferred

choice to ensure quality construction is provided

in the given, limited period. To maintain product

standards and deliver within the deadline – this

can’t be done traditionally,” Abuagla continues.

Speed, it would seem, is the driving factor

behind shifting to pre-engineered products.

“Pre-engineered products are much faster to

complete,” says Amr Shahbour, district manager

for Dubai and Northern Emirates at Zamil Steel.

“Even a large project (in terms of size) can be

completed within a span of four to five months.”

Wastage, Abuagla claims, can be massively

reduced through the use of prefab.

“We can install up to 20 pods – this goes a long

way in saving the time taken up by construction,”

he says. “The supply chain is drastically

shortened too, since all products are available

with a single manufacturer who will install

them for you, as against the need to reach out to

multiple suppliers.

“Moreover, since all units are produced in the

factory and made to exact specifications, material

wastage is significantly reduced.”

Quality remains the deciding factor in the

implementation of prefab construction, with the

market consensus often leaning towards general

disapproval for the method, which is believed

to result in low-quality modules due to faster-

than-traditional delivery time periods. Abuagla,

however, feels it is to the contrary.

“You cannot compare product quality with

time parameters. With Unipods bathrooms,

for example, the final output will not compare

with traditionally built ones, simply because the

processes are so varied.

“We don’t always have the opportunity to

check factors, such as waterproofing, on site.

But because all the installed units are factory-

produced, there is the confirmation that each

of them is consistent and adheres to client

specifications.”

Another derived advantage of the method is

the convenience of adjustment. “Maintenance

is very easy with pre-engineered structures;

say, for instance, steel members in a building,”

says Shahbour. “Relocation, extensions, upkeep

are all simplified processes when it concerns

prefabricated pieces.”

The aim at Shabour’s company is the

complete elimination of concrete slabs, which

are replaced by steel members to allow for easy

modifications.

Abuagla believes the market is gradually

opening up to prefab alternatives.

“If I have a client using my product once,

chances are good they will return – and they do

often. It is undoubtedly difficult to convince and

convert those contractors in the region who have

Chinese construction company Broad Sustainable Building (BSB) was globally acknowledged in January 2012 for its construction of a 30-storey hotel in 360 hours in the country’s Hunan Province.

The 17,000sqm hotel, teports claimed, withstood earthquake resistance tests from magnitudes of 7.0-9.0 on the Richter Scale, and works based on the principles of energy conservation to complete air filtration.

T30

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been using traditional construction methods for,

say, 20 years. We are often asked if this method

will help in cost-reduction.

“The onus is on us to educate them about

quality, value for money and so on. There are

various intangibles involved in the use of prefab –

it is hard to put a price on supervision, reduction

of wastage and other such factors.

“That is the reason we have so many returning

customers. It is a big weight off their shoulders,

to have the option of prefabricated products at

their disposal, without too many concerns about

quality,” Abuagla adds.

Prefabrication is not a recent phenomenon;

reports have suggested it was the preferred

method of housing during the World War II, and

many European countries and the USA have in

the past used prefabricated modules for housing

and small commercial purposes as well.

Today, prefabricated units are vastly popular

across the globe. More than ten residential units

were built between 1994 and 2004 in Hong Kong

city, for instance.

In 2001, global fast-food joint McDonalds

gained attention for the use of prefab technology

to build their new outlets, setting a record for an

outlet that was built and open for business within

13 hours of starting construction on prepared

ground-works.

Prefab structures are also viewed as solid

temporary housing solutions for unforeseen

situations, proven by their extensive use in the

aftermath of Hurricane Katrina in USA, 2005.

“The use of prefabricated and pre-engineered

products is not restricted just to commercial units

like factories, sheds, hangars and so on,” explains

Shahbour.

“We have, in the past, provided pre-

engineering solutions for residential complexes

and parking lots in Bangladesh. There is surely

ample residential scope with prefabricated

construction.”

As the UAE moves towards sustainable

business practices, prefabricated construction

has the chance to claim stakes in what could

revolutionise ‘green buildings’ across the region.

Prefab construction centres around the

concept of off-site production, which means

most units are brought in from factories and only

assembled on-site, thus reducing the wastage

and energy consumption that is a notable facet of

traditional construction.

As Abuagla concludes, “most prefab structures,

such as pods, are built from scratch and to exactly

given standards. In a way, prefab construction is

already an eco-friendly method.” n

When Hurricane Katrina hit America in August 2005, the state of Louisiana heavily suffered a loss of housing in its famed city, New Orleans.

Over the next couple of weeks and months, prefab housing units were set up for those displaced by the mishap, with government support extending to almost $900mn to set up close to 25,000 mobile and modular homes for the residents. Such was the demand for prefab housing, that, nearly a year later, reports pertaining to the traditional housing market’s decreasing preferability began to emerge.

HURRICANE KATRINA

OPPORTUNITIESPre-fabrication building has the chance to establish itself as a “green” alternative.

“THERE WILL BE A TIME WHEN CONSTRUCTION FOR EXPO 2020 AND THE FIFA WORLD CUP 2022 WILL HAVE TO BE SPED UP. TO MEET THE CONSTRUCTION DEMANDS AS SOON AS POSSIBLE, PREFAB STRUCTURES WILL BE THE PREFERRED CHOICE”

36 - 41 Proj Management.indd 36 10/2/13 9:56 AM

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Harwal Group is a holding company

for a diverse group of manufacturing

companies spread across the United

States, the Middle East and Europe. The

group provides high quality products across a

range of sectors.

Headquartered in the UAE, the group has

an annual conversion capacity of 200,000mt of

plastic and 20,000t of aluminium.

Although the Group’s primary business is

based on plastic, metal and wood conversion

in the building materials industry, it also has a

wide range of finished products for some very

diverse sectors. One recently launched product

Helping you makethe smartest decisions

Big Project ME speaks to Nazar Shahinian, VP of Business Development at TSSC, about the new EasyPanel wall system

EASYDOES IT

DECEMBER 2013

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TIME & MONEY EASYPANEL

that draws special attention is the ‘EasyPanel’

range of cement walls developed by TSSC, a

group company.

Big Project ME spoke to Nazar Shahinian, VP

of Business Development at TSSC, to find out just

why these panels are so special and how they can

assist contractors and developers when it comes

to building large scale residential projects.

HOW ARE THESE UNITS BENEFICIAL TO CONTRACTORS OR DEVELOPERS?With high demand for housing in the region,

contractors and developers are looking for ways

to build a large number of houses rapidly. Using

the conventional block and cement approach to

building takes too much time and has proved to

be too costly.

As we see it, developers cannot meet the

huge market demand for housing using these

traditional block walls.

On the other hand, contractors are looking

for materials that look, feel and work like

traditional block wall. This is where the

EasyPanel comes in, as it does it all.

IN TERMS OF PERFORMANCE AND DURABILITY, HOW DO THEY COMPARE TO TRADITIONAL BLOCK WALLS?Traditional walls are made from blocks that are

cemented onto each other and then plastered

before finishing. This is a slow, inefficient and

labour intensive way of building homes. The

EasyPanel was designed to overcome all this.

EasyPanel is a solid cement wall panel made

of cement board and filled with cement foam

making it light enough to be easily carried and

installed. It installs faster than traditional block

wall, is easy to cut and fabricate, is prefinished

and costs less than a traditional block wall.

The EasyPanel wall system was designed to

be a new age cement wall to replace the blocks

being used throughout the region. It’s just like a

traditional block wall but much better.

SO WHAT ARE THE OTHER BENEFITS OF THESE PANELS?Other than the fact that EasyPanel feels like and

does pretty much everything a block wall does,

perhaps the next most significant performance

advantage of the EasyPanel is the insulation

“EASYPANEL IS LIKE A TRADITIONAL BLOCK WALL, BUT MUCH BETTER”

factor which is vastly superior to block wall.

The impact of this is substantial when it comes

to the cost of cooling homes and the cost of the

cooling infrastructure to support each home.

HOW MUCH DO THEY COST COMPARED TO TRADITIONALLY CONSTRUCTED UNITS?When comparing the cost of building a wall

using the EasyPanel versus a traditional wall

with blocks and cement, the EasyPanel offers a

20-25% savings in building a house.

Furthermore, the savings increase once

you factor in the additional cost of plastering

both sides of the block wall to make it ready for

painting.

But perhaps the greatest savings is in the

reduction in time needed to build a finished

home. The savings in energy costs attributed to

the insulation the EasyPanel offers adds to the

cost saving.

HOW CAN THEY BE ADAPTED AND CUSTOMISED TO INDIVIDUAL CONTRACTOR/DEVELOPER NEEDS?EasyPanel is a conventional material that can

be customised, designed, cut and fabricated by

contractors on the job site similar to block walls.

So there isn’t a huge learning curve or hurdle

to overcome. EasyPanel makes the building

process fast and easy. n

DECEMBER 2013

CUSTOMISATION EasyPanel is a conventional material without a huge learning curve, making building fast and easy.

EASY DOES ITEasyPanel installs much faster and is more cost-effective than traditional block wall.

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TENDERS BIGPROJECTME.COM

in planning stage. The Airport City will include a new trade free zone, cargo village, factories belonging to the civil aviation for packaging and food terminals

STATUS New Tender

www.ccsgulf.com | Tel: +971 4 346 6456 | [email protected]

INTEGRATED ESTIMATING, PROJECT CONTROL

AND ERP SOLUTION FOR CONTRACTORS

TOP TENDERS

BUDGET $3,000,000,000

CLIENT Al Habtoor Group LLC (Dubai)

REGION Dubai

BUDGET $14,000,000,000

CLIENT Egyptian Holding Company for Airports & Air Navigation - EHCAAN (Egypt)

REGION Egypt

DESCRIPTION This project will be developed next to Cairo International Airport in Egypt and cover an area of up to 10 million sqm. It is understood that the project is currently

PROJECT NAME: AL HABTOOR CITY PROJECT

BUDGET $9,300,000,000

CLIENT Jeddah Municipality (Saudi Arabia)

REGION Saudi Arabia

DESCRIPTION Construction of Jeddah Metro light rail transit system spanning 108 kilometres comprising three major lines

STATUS New Tender

PROJECT NAME: KIRKUK - HADITHA CRUDE OIL PIPELINE PROJECT

BUDGET $500,000,000

CLIENT North Oil Company (Iraq)

REGION Iraq

DESCRIPTION Construction of a 180-kilometre-long, 40in crude oil pipeline for connecting an oil field to distribution and storage facilities

STATUS New Tender

PROJECT NAME: JEDDAH METRO PROJECT

BUDGET $5,000,000,000

CLIENT Bahrain Government

REGION Bahrain

DESCRIPTION Construction of a 90-kilometre-long railway line linking Bahrain and Saudi Arabia. This new railway line will form part of the $15.5 billion GCC-wide railway network and help alleviate increasing congestion on the existing King Fahd Causeway linking the two countries

STATUS New Tender

DESCRIPTION Construction of Al Habtoor City comprising three luxury residential towers, including multi-level penthouses, in addition to three hotels, a 1,400-seat Las Vegas-style aqua theatre, three large basement levels, ground and mezzanine levels and a large car park

STATUS Current Project

PROJECT NAME: CAIRO AIRPORT CITY DEVELOPMENT

PROJECT NAME: BAHRAIN - SAUDI ARABIA RAILWAY LINE PROJECT

76 - 81 Diary/Knauf/Big-5.indd 77 10/2/13 1:33 PM

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UAEPETROCHEMICALS STORAGE TANK TERMINAL PROJECT

PROJECT NUMBER MPP2843-UTERRITORY Northern EmiratesCLIENT NAME Middle East Tanking Solutions FZC (Fujairah)CITY Fujairah COUNTRY UAEPHONE (+971-9) 223 5264FAX (+971-9) 223 5265EMAIL [email protected] www.middleastanks.comDESCRIPTION Engineering, Procurement and Construction (EPC) contract to build a new petrochemicals storage tank terminal.STATUS New TenderFEED CONSULTANT MUC Oil & Gas Engineering Consultancy (Fujairah) TENDER CATEGORIES Industrial & Special ProjectsTENDER PRODUCTS Storage

RUWAIS SURGE DRUM PROTECTION & BATTERY LIMIT ESD VALVES PROJECT

PROJECT NUMBER WPR051-UTERRITORY Abu DhabiCLIENT NAME Abu Dhabi Gas

Industries Limited (GASCO)ADDRESS Tower H, Corniche, Near Al Ain Palace HotelCITY Abu Dhabi POSTAL/ZIP CODE 665COUNTRY UAEPHONE (+971-2) 603 0000FAX (+971-2) 603 7414EMAIL [email protected] www.gasco.aeDESCRIPTION Engineering, Procurement and Construction (EPC) contract for surge drum protection and battery limit ESD valves at a refineryBUDGET $7,000,000PERIOD 15/05/2015 STATUS Current Project

TENDER CATEGORIES Gas Processing & Distribution, Oilfields & RefineriesTENDER PRODUCTS Modification, Repair & Refurbishing Services, Oilfield Supplies & Services, Oilfields Exploration & Development, Valves & Fittings (All Types)

OMAN

STEEL PRODUCTION PLANT PROJECT - SOHAR INDUSTRIAL ESTATE

PROJECT NUMBER WPR067-O

TERRITORY OmanCLIENT NAME Moon Iron & Steel Company (MISCO) - OmanCITY Bahla 612 POSTAL/ZIP CODE 307COUNTRY OmanPHONE (+968) 2541 9595EMAIL [email protected] www.mesteel.comDESCRIPTION Engineering, Procurement and Construction (EPC) contract to build a steel production plant with capacity to manufacture 1.2 million tonnes per annum of steel billetsPERIOD 2015 STATUS Current ProjectMAIN CONTRACTOR SMS Meer

MIDDLE EAST TENDERS PROVIDED BY Tel +9712-6348495Web www.MiddleEastTenders.comEmail [email protected]

SPONSORED BY Tel +9714 346 6456 Web www.ccsgulf.comEmail [email protected]

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GmbH (Germany)MAIN CONTRACTOR(2) SMS Concast Italia SpA (Italy)MAIN CONTRACTOR(3) Essar Projects Ltd. (Oman)TENDER CATEGORIES Industrial & Special ProjectsTENDER PRODUCTS Steel Mills

QATAR KATARA TOWERS PROJECT - LUSAIL MARINA DISTRICT

PROJECT NUMBER WPR059-QTERRITORY QatarCLIENT NAME Katara Hospitality (Qatar)ADDRESS Formerly Qatar National Hotels Company, Katara Hospitality Bldg., C Ring RoadCITY Doha POSTAL/ZIP CODE 2977COUNTRY QatarPHONE (+974) 4423 7777FAX (+974) 4427 0707EMAIL [email protected] www.katarahospitality.comDESCRIPTION Construction of Katara Towers comprising a luxurious five-star hotel and a luxury hotel, including branded apartments, consisting a total of (614) roomsPERIOD 2017 STATUS New Tender DESIGN Consultant Kling Consult (Dubai)FOUNDATIONS, ENABLING & PILING CONTRACTOR Al Habtoor Leighton Group W.L.L (Qatar) TENDER CATEGORIES Prestige Buildings, Hotels, Leisure &

EntertainmentTENDER PRODUCTS High-rise Tower, Hotel Construction

INDEPENDENT WATER & POWER PROJECT-4

PROJECT NUMBER MPP2844-QTERRITORY QatarCLIENT NAME Qatar General Electricity & Water Corporation (Kahramaa)ADDRESS Corniche Street, Number 61, Sheraton Roundabout, Dafna AreaCITY Doha POSTAL/ZIP CODE 41COUNTRY QatarPHONE (+974) 4484 5484/ 4484 5555

FAX (+974) 4484 5496EMAIL [email protected] www.km.com.qaDESCRIPTION Engineering, Procurement and Construction (EPC) contract to build an Independent Water & Power Project (IWPP) with power generation capacity of 2,400 megawatts (MW) and 30 million gallons a dayCLOSING DATE February 6, 2014 PERIOD 2016 STATUS New TenderTENDER CATEGORIES Power & Alternative Energy, Water WorksTENDER PRODUCTS Independent Water & Power Plants (IWPP)

INDEPENDENT WATER PROJECT - RAS LAFFAN INDUSTRIAL CITY

PROJECT NUMBER MPP1487-QTERRITORY QatarCLIENT NAME Qatar General Electricity & Water Corporation (Kahramaa)ADDRESS Corniche Street, Number 61, Sheraton Roundabout, Dafna AreaCITY Doha POSTAL/ZIP CODE 41COUNTRY QatarPHONE (+974) 4484 5484/ 4484 5555FAX (+974) 4484 5496EMAIL [email protected] www.km.com.qaDESCRIPTION Construction of




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TENDERS

an Independent Water Project (IWP) using reverse osmosis (RO) technology, with capacity of 45 million gallons a day (g/d)STATUS New Tender TENDER CATEGORIES Water WorksTENDER PRODUCTS Independent Water Plants (IWP)

SAUDI ARABIAHOSPITAL CONSTRUCTION PROJECT - AL KHOUD

PROJECT NUMBER WPR066-OTERRITORY Saudi ArabiaCLIENT NAME Shifa Al Jazeera Medical Group (Saudi Arabia)ADDRESS BathaCITY Riyadh COUNTRY Saudi ArabiaPHONE (+966-1) 412 4900 / 412 2455FAX (+966-1) 409 2028EMAIL [email protected] www.shifaaljazeera.com.saDESCRIPTION Construction of a super-specialty hospital comprising (100) bedsPERIOD 2015 STATUS New Tender TENDER CATEGORIES Construction & Contracting, Medical & HealthcareTENDER PRODUCTS Hospital Construction

IRAQDUHOK INTERNATIONAL AIRPORT PROJECT - PHASE 1

PROJECT NUMBER ZPR360-IQTERRITORY IraqCLIENT NAME Civil Aviation Authority (Iraq)ADDRESS Baghdad International Airport, Babylon Terminal, 2nd FloorCITY Baghdad COUNTRY IraqPHONE (+964-1) 813 2467 / (+964-790) 531 9779 FAX (+964-1) 543 0689EMAIL [email protected] www.iraqcaa.comDESCRIPTION Construction of an international airport in Duhok with annual capacity of 328,000 passengers - Phase 1PERIOD 2015 STATUS Current Project DESIGN CONSULTANT Dar Al

Handasah (Shair & Partners) – IraqDESIGN CONSULTANT 2 Aeroports de Paris - AdP (France)MAIN CONTRACTOR Makyol Construction Industry Tourism & Trading Company (Turkey)MAIN CONTRACTOR 2 Cengiz Holding (Turkey)TENDER CATEGORIES Airport, Construction & Contracting, Roads, Bridges & InfrastructureTENDER PRODUCTS Airports Development & Management

BAGHDAD MONORAIL PROJECT

PROJECT NUMBER MPP2381-IQ

TERRITORY IraqCLIENT NAME Baghdad Governorate (Iraq)ADDRESS Near Al Khalani AreaCITY Baghdad COUNTRY IraqPHONE (+964-5) 377 676 / (+964-7) 4002 2618EMAIL [email protected] www.baghdad.gov.iqDESCRIPTION Development of 25-kilometre-long monorail on a viaduct comprising (14) stations in BaghdadBUDGET $1,500,000,000 PERIOD 2018 STATUS Current Project




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SHOW REPORT THE BIG-5 2013 BIGPROJECTME.COM

Big Project ME was on the ground at the 2013 edition of The Big-5 to find out the prevailing market sentiment ahead of what looks to be a stellar year for the GCC construction industry

BIGGER ANDBETTER

Following its inauguration by HH Sheikh

Hamdan bin Rashid Al Maktoum, Deputy

Ruler of Dubai, on 25 November, 2013,

The Big-5 show in Dubai kicked off with a

bang that saw record crowds flock to the region’s

largest construction show.

With a history of more than 33 years in the

region, this year’s event has grown by 10%

compared to the 2012 edition, with more than

2,500 exhibitors coming together from 65

countries. Organisers estimated that more than

60,000 construction industry professionals were

onsite over the course of the four days of the

event.

Also opening alongside the event was

Middle East Concrete – the largest event for

the concrete industry, showcasing concrete

products, technical seminars and live product

demonstrations – and PMV Live, an interactive

event for the plant, machinery and vehicle

industry that highlighted the latest in heavy

vehicles and related equipment.

“The event continues to grow with each

edition and is still considered the region’s most

important event for the building and construction

industry. This year, The Big-5 once again gave

architects, interior designers, contractors,

developers and all other construction

professionals, access to the full spectrum of

products. Our education programme also

expanded this year, giving our visitors access

to hundreds of free seminars, workshops and

BIG 5 NUMBERS:n 2,500 – estimated

exhibitors this year

n 60,000 – expected visitors

n 65 – countries represented

n 10% – growth in floor space at this year’s event

BEST IN YEARSUncomfirmed visitor numbers suggest that more people went on the first day than the whole of 2012.

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SHOW REPORT THE BIG-5 2013

regulatory updates,” said Andy White, group

event director for the show.

One such regulatory update was the

presentation by Dubai Municipality about the

new Building Code Guidelines. Kamal Azayem,

mechanical engineering expert at Dubai

Municipality, told seminar goers that there were

currently 40 buildings in Dubai that were in line

with the new Green Building codes, with two

already complete and certified.

Contractors present at the seminar were taken

through what they could expect from the codes

and given examples of how these were already

being put into practice.

The new guidelines will enforce a number of

construction and operational specifications that

are meant to make buildings more sustainable

and efficient, Azayem added.

However, what had everyone talking was the

announcement of the Expo 2020, which was

awarded to Dubai on the 27 November, on the

penultimate day of the show. Quite obviously,

exhibitors were optimistic about its impact on

the local construction industry and what it would

mean for them.

Stefano Iannocone, the managing director of

Mapei, said that he expects there to be a positive

impact in the wake of the announcement: “The

Big-5 is an excellent opportunity for the industry

to unite on the eve of the Expo 2020 result

announcement. A lot of deals have been signed

and the Expo announcement will only further

this activity.”

Andy White agreed, adding that this could be

seen throughout the exhibition.

“We congratulate Dubai and the UAE on their

successful bid. The optimism in the industry

has certainly been seen on the show floor. This

year has surpassed attendance expectations,”

he commented. “Winning the Expo bid was a

fantastic way to round off this year’s show.”

Other exhibitors were equally impressed

with the turnout at this year’s The Big-5, with

Jeff Orme of Thrislington Cubicles, remarked to

Big Project ME that his stall had seen a surge in

interest as compared to previous years.

“We came here two years ago and we were

a bit disappointed with the show. But we don’t

come to shows to sell jobs, but for branding and

presence, and this year we’ve found that it’s been

much busier. People are showing a lot of interest

and we think that the market is going in such a

way that we’ll benefit very strongly in 2014 and

into 2015,” he pointed out.

“THIS YEAR, THE BIG-5 ONCE AGAIN GAVE ARCHITECTS, INTERIOR DESIGNERS, CONTRACTORS, DEVELOPERS AND ALL OTHER CONSTRUCTION PROFESSIONALS, ACCESS TO THE FULL SPECTRUM OF PRODUCTS”

“We’re already seeing it in other Gulf countries

such as Qatar and Saudi Arabia. At the moment

we’re doing the King Abdullah Sports City and the

Doha Convention Centre, we’re involved in the

Heart of Doha, the World Trade Centre in Doha,

so we’re building a nice portfolio of projects.”

“We haven’t had that much work in Dubai

and Abu Dhabi recently, we did years ago, but

we’ve not had as much work recently, but we’re

hoping on the back of this show, that over the

course of the next 12 months, we see the fruits of

that,” Orme added.

CK Raju, research and development manager

at Rubber World Industries, was also very

enthusiastic about the resurgence of the show,

following what many deemed to be a lacklustre

2012 edition.

“It’s been a huge success. You see the number

of stalls. People are here from all over the world.

So not only places like China, which is what

we’ve seen previously, but also from Turkey,” he

asserted. “Last year when I came, I only saw a

few, but this time, I’ve seen dozens. That’s a new

development. Even from Saudi Arabia, India,

Brazil, there are so many stalls that I’ve seen from

all over the world. There’s a lot of optimism in

the market.” n

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CONSTRUCTIVE CRITICISM BIGPROJECTME.COM

GAVIN DAVIDS

LATE LAST MONTH, as part of my

responsibilities at The Big 5, I attended a panel

discussion hosted by Big Project ME’s very own

group editor, Stephen White. While the panel

discussion centred on the issues of working

safely at heights and the training of workers

on construction equipment, there were a few

topics of discussion that really stood out for me.

We had the director of Occupational

Health and Safety at the Ministry of Labour,

Dr Ali Salem as part of our panel and he said

something very fascinating about how he

expects his department to conduct its affairs

and duties.

Dr Salem pointed out that he views it as a

matter of necessity that his team of inspectors

are up to date with all the kit and equipment

that are being used on construction sites across

the UAE. To this end, he insists that they go on

mandatory training courses set up by IPAF, so

that they learn – not only what the equipment

is used for – but also how it’s erected and

disassembled.

Not only does he ensure that his teams do

this, but he himself also goes along to these

training sessions to make sure that he’s just as

up to date as his inspectors.

It’s quite refreshing to see a senior

government official take such a proactive

role and it’s an example that I think more

government ministries around the GCC should

follow. While I’m sure they’re very good at

their jobs, it’s always useful to have first-hand

knowledge of the equipment and conditions

that workers on the ground are facing.

With Dubai now confirmed as the host of

the Expo 2020, the pace of construction is only

set to grow and with this comes the number

of construction workers on the ground. It’s

estimated that the Expo will create something

like 277,000 new jobs. I’d imagine that a large

section of those jobs would be new labourers

brought in to work on the projects that will be

announced.

Given the scale of the task that the

Ministry of Labour will be facing, I think it’s

quite perceptive of Dr Salem to push for his

inspection teams to have a greater awareness

of the hazards and challenges that workers

will face.

Hopefully, with these pre-emptive measures

in place, we could see the number of fatal

onsite accidents kept to a minimum. Of course

there are things we can’t account for, but with

proper planning and training, we’ll be able to

prevent incidents such as the recent fire on a

construction site on Al Khail road, which saw

panicked workers climbing down scaffolding

and ropes, while unfortunately one died after he

jumped from the third floor.

Traditionally, as we enter a new year, it’s

a time for reflections and resolutions, so let’s

hope that the Ministry keeps to this one, and

that we as an industry do our utmost to help

them achieve it.

On that note, I’d like to wish all our readers

a Happy New Year and a very prosperous 2014!

It’s been a tremendous year for Big Project ME

and personally, I’ve learnt so much from all of

you. I hope we’ve repaid that and I look forward

to continuing our association in the New Year. n

Gavin Davids is optimistic that Dr Ali Salem’s drive to educate his health and safety inspection teams could set the standard for the rest of the GCC

Pre-Emptive Measures

“WITH DUBAI NOW CONFIRMED AS THE HOST OF THE EXPO 2020, THE PACE OF CONSTRUCTION IS ONLY SET TO GROW AND WITH THIS COMES THE NUMBER OF CONSTRUCTION WORKERS ON THE GROUND.”

Documents

Big Project ME December 2013