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ARE THE
GCC’S RAIL
ON TRACK?
PLANS STILLARE THE
GCC’S RAIL
ON TRACK?
PLANS STILLARE THE
GCC’S RAIL
ON TRACK?
PLANS STILL
094JANUARY 2014
ALSO INSIDE AKOYA TEES OFF
BECHTEL’S DIPLOMAT KUWAIT IN HIBERNATIONCONTRACTOR CAUTIONS
Big Project ME talks to the experts to find out w
hy a GCC wide
railway network is crucial if
regional ambitions are to be met
The Construction Machinery Show 2014 is the largest heavy construction machinery event in the region, showcasing a wide variety of products ranging from heavy equipment to machinery, from lighting to generators as well as dealers and service providers.
The event will provide an invaluable platform for customers in the Arab world bringing together manufacturers, distributors and buyers.
The Construction Machinery Show 2014 is also the only event in the region where buyers can see a huge range of equipment in
action via its programme of live demonstrations and the largest ever showcase of its type in the Middle East.
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.
Both events will attract worldwide industry experts, investors and buyers to the largest tradeshow in the Eastern Province.
LIVEDE
MONST
RATIO
NS
16-20 February 2014
Dhahran International Exhibition Center,Dammam, Kingdom of Saudi ArabiaShow timings: 9:30-12:00 and 16:00-22:00
DAMMAM
Raz IslamPublishing [email protected]: +971 50 451 8213
Michael StansfieldCommercial Director [email protected]: +971 55 150 3849
Gold Sponsor Co-located with Organised byInformation Partner
The Construction Machinery Show 2014 is the largest heavy construction machinery event in the region, showcasing a wide variety of products ranging from heavy equipment to machinery, from lighting to generators as well as dealers and service providers.
The event will provide an invaluable platform for customers in the Arab world bringing together manufacturers, distributors and buyers.
The Construction Machinery Show 2014 is also the only event in the region where buyers can see a huge range of equipment in
action via its programme of live demonstrations and the largest ever showcase of its type in the Middle East.
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.
Both events will attract worldwide industry experts, investors and buyers to the largest tradeshow in the Eastern Province.
LIVEDE
MONST
RATIO
NS
16-20 February 2014
Dhahran International Exhibition Center,Dammam, Kingdom of Saudi ArabiaShow timings: 9:30-12:00 and 16:00-22:00
DAMMAM
Raz IslamPublishing [email protected]: +971 50 451 8213
Michael StansfieldCommercial Director [email protected]: +971 55 150 3849
Gold Sponsor Co-located with Organised byInformation Partner
C
M
Y
CM
MY
CY
CMY
K
AD234x290_BigProject_28112013_HR_AW.pdf 1 12/3/2013 4:11:57 PM
CONTENTS
MID
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JANUARY 2014
PAGE 18Big Project ME visits the site of Akoya by Damac.
07 THE BIG PICTURE
INTERNATIONAL CONTRACTORS TAKE UAE TOP SPOT
Report finds that balance of work has shifted away from real estate
12 IN PROFILE
THE CONSTRUCTION DIPLOMAT
Big Project ME talks to Bechtel’s David Welch about his plans for the giant
18 SITE VISIT
AKOYA TEES OFF
Big Project ME visits the site of the region’s most luxurious golf course
22 MAIN FEATURE
STAYING ON TRACK
Examining why a GCC-wide railway is vital for regional ambitions
26 INDUSTRY FOCUS
A CALL FOR CAUTION
Local contractors highlight their concerns in the aftermath of Expo 2020
30 COUNTRY FOCUS: KUWAIT
HIBER-NATION – THE KUWAIT STORY
Neha Bhatia analyses whats holding back Kuwait’s construction sector
34 SPECIAL FEATURE: SMART GLASS
VISION 20/20
Big Project ME looks at how the glass industry is shaping up
38 SPECIAL FEATURE: TECHNOLOGY
INTELLIGENCE: UNDER CONSTRUCTION
How emerging technology can help the regional construction industry
42 COMMENT
KUWAIT PPP – AN OVERVIEW OF RECENT DEVELOPMENTS
DLA Piper analyses the impact of Kuwait’s PPP plans
44 TENDERS
MIDDLE EAST’S TOP TENDERS
Listing the Middle East’s biggest construction tenders of the month
47 HAPPENING THIS MONTH
INTERMAT MIDDLE EAST
Big Project ME previews Intermat Middle East ahead of the show
48 CONSTRUCTIVE CRITICISM
CHAMPIONS OF HOPE
Is a local documentary the first sign of increased access to labour camps?
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Money can buy the land.
But ambition makes it a landmark.
4 JANUARY 2014MID
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EDITOR’S COMMENT BIGPROJECTME.COM
Stephen WhiteGroup Editor
Did you bring in the New Year ready with the resolve to keep your resolutions? While drafting this month’s editor’s letter I thought long and hard about what promises we should make as an industry. Eventually I distilled them into two worthy aspirations which I think we should aim for: transparency and engagement.
The last half-decade made us conservative and wary as we clung onto the small volume of work and partners that were out there.
However, as the market now opens up, and we embrace those opportunities that will arise, we should be confident in our ability to deliver effectively and to global standards of best practice.
The only way this is going to be possible is by following those tenets I suggested above. The world’s media spotlight will soon move from the difficulties of Brazil and fix firmly on the way the Middle East construction industry conducts itself.
We’ve already seen the problems that cutting corners that country has faced. Closer to home Saudi suffered last year when changes to labour controls brought construction to a standstill. In Qatar, poor practices by contractors there placed greater criticism and scrutiny on the FIFA World Cup preparation. This was followed at the close of the year by yet more bad news when we heard of a British company that found itself in trouble for ‘accounting irregularities’ from its Middle East operation.
The global press will now be hunting for more stories that reflect badly on this industry. The pressure is therefore on and the onus is on us to prove that we deserve to build and host global events for the right reasons and not just because we can afford to do it.
Time for clear thinking
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Al-Masjid al-Haram or the Grand Mosque surrounds one of Islam’s holiest places, the Kaaba. It is located in the city of Mecca and is the largest mosque in the world. In 2011 Saudi Authorities launched work on a new historic $10.6-billion expansion, increasing its capacity to more than 2.5 million worshippers. The total area of the existing Haram Mosque is 356,000 m2 accommodating 770,000 worshippers. Moreover, other plans were included to expand the mataf (the circumambulation areas around the Holy Kaaba) and provide air-conditioning for all parts of the Grand Mosque. In 2007, the entire mosque was fitted with air conditioning so that worshipers could perform their prayers in comfort. More than 100,000 m2 of the new extension will have FOAMGLAS® boards on the roof to ensure an efficient use of the energy. The high compressive strength of the thermal insulation FOAMGLAS® will enable the use of the roof for the pilgrims and is at the same time the most durable insulation with zero degradation of the thermal performance over generations. FOAMGLAS® can never get wet due to the homogenous and close cell structure which is produced with more than 60% recycling glass.
Flat Roof (accessible to foot traffic)
FOAMGLAS® Insulation
Grand Mosque extension, Mecca, Saudi Arabia
Architect Dar al HandasahConstruction 2012, ongoingApplication FOAMGLAS® FLOOR BOARD T4+, 50 mm, about 125,000 m2, loose laid as inverted roofFinish Marble tiles
Build-up1 Corrugated steel decking2 Reinforced concrete3 Waterproofing membrane4 FOAMGLAS®
FLOORBOARD T4+, 50 mm
5 Separating layer6 Cement-sand mortar
bedding7 Marble tiles, 40 mm. Flat
Roof, accessible to foot traffic
56
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4
1
3
2
7JANUARY 2014 MID
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THE BIGGEST PICTURE
DAVID WELCH OUTLINES HIS AGENDA FOR BECHTEL IN THE REGION TO BIG PROJECT MIDDLE EAST – PAGE 12
CREDO GROUP REPORT ‘MIDDLE EAST CONSTRUCTION & ENGINEERING REVIEW 2013’ FINDS THAT BALANCE OF WORK WON BY FIRMS HAS SHIFTED AWAY FROM REAL ESTATE SECTOR
INTERNATIONAL CONTRACTORS HAVE
consistently won the most contracts by value in
the UAE, a report by the Credo group has found.
The results reflect the UAE’s position as the
largest construction market in the region. In
sector terms, the balance of work won by these
firms has shifted from real estate (which remains
the largest sector over the whole period) towards
the oil & gas and industrial sectors.
Contract wins in other sectors have been
lumpy, the report said, skewed by individual
megaprojects.
Hyundai and Samsung have led the group in
total contract wins across the period, but there
have been some shifts in momentum.
In particular, China Harbour has had success
with several megaprojects and Leighton has had
a number of recent successes across sectors, the
report added.
Credo said that their results were gathered
after they considered the performance of the
leading international contractors in the Middle
East, over the last five years.
“Our analysis has focused on the total value
of published contract wins, adjusted for each
contractor’s share in any joint venture or consor-
tium,” the research group said in the report.
INTERNATIONAL CONTRACTORS TAKE TOP SPOT IN UAE CONTRACT WINS
BY COUNTRYGiven it accounts for over half of total contract wins in the group, it is perhaps unsurprising that all contractors have a material share of contract wins in the UAE.
However, there is a marked difference between contractors in terms of their geographic diversity beyond this.
Hyundai and L&T have been successful across all five countries (albeit on different scales). All the other firms have won over 90% of their contracts by value in one or two countries.
BY SECTORFew, if any, firms have been truly generalist across sectors. In particular, the relatively smaller (in terms of contract wins) European firms have, mostly, only had success in real estate, figures show.
The larger firms have been successful across more sectors, notably Infrastructure, oil & gas and Industrial, reflecting the general shift in sector per-formance across this group.
The nature of new developments means that the physical assets these firms are building may not match the sector in which they are classified.
CONTRACT WINS BYCOUNTRY
OMAN KUWAIT
QATAR
SAUDI ARABIA
UNIT
ED A
RAB
EMIR
ATES
RE
AL ES
TATE
CONTRACT WINS BYSECTOR
WATERPOWER
TRANSPO
RT
INDUSTRIALOIL &
GAS
8 JANUARY 2014MID
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THE BIG PICTURE BIGPROJECTME.COM
QATAR TO COMPLETE RAIL PROJECTS AHEAD OF SCHEDULE TO SAVE COSTS
CEO says mutli-billion project will be completed ahead of schedule to escape escalating costs
Qatar is working on a plan to complete its multi-billion dollar rail project ahead of schedule as it looks to escape escalating costs from delays, the CEO of Qatar Rail Company (QRC), has said.
Saad Al Muhanadi, told the Qatar Arabic language daily newspaper, Al Sharq that the project was ‘on schedule’ and that 21 of the planned 25 stations are under construction and progress-ing ‘very well’, in line with the company’s planned timetable.
“QRC has devised a plan to prevent any delay in the execu-tion of the project to avert any increase in costs,” he said.
However, he conceded that work was yet to start on the
remaining four sites.Al Muhanadi added that be-
sides the foreign firms which won the massive rail contracts, Qatari companies have also picked up a share of the projects, by partner-ing with the foreign firms.
“The contract stipulates part-nership between the foreign and Qatari contractors, with a range between 10% and 20%, from project to project,” he explained. “Most of the consortiums that qualified and won the first phase of this project include Qatari partners,” he said.
Formed in 2011 to under-take the rail project, Qatar Rail Company has already agreed contracts worth $8.2 billion. The project is scheduled to be com-pleted by the year 2019.
The planned metro network will be 230km long, while the long range rail will stretch across 510km of the country. It will be part of the mammoth 2,177km GCC wide railway system, run-ning from Kuwait to Oman.
BIG PROJECT MIDDLE EAST SHOOTS A COUPLE OF HOLES AT THE AKOYA BY DAMAC PROJECT – PAGE 18
510
SAUDI KING WARNS MINISTRIES ABOUT VIOLATING TENDERING PRACTICESMove comes in response to finance ministry letter that highlighted cases of malpractice
KING ABDULLAH OF Saudi Arabia has warned
ministries in the country to be fair and transpar-
ent when it comes project tendering and not to
entertain or tolerate requests to break the rules.
The strong move comes as a response to a
letter from the finance ministry that highlighted
cases of government departments requesting
for permission to award contracts to preferred
companies or to restrict tenders to select firms,
the Arabic language daily, Sabq reported.
The publication carried text of the finance
ministry’s letter (No. 8155), drawing the
monarch’s attention to such practices.
“In response to the letter, the monarch has
issued instructions, stressing that all ministries
and public establishments must adhere to the
rules, which require them to issue tenders for
government projects to all qualified companies
without exceptions,” the report said.
The ministry said that it believes that this ten-
dering process will allow the government to get
suitable prices for its contracts. The Minister of
Finance echoed the King and said that there must
be no exception to any department.
The finance ministry noted in its letter that
requests by defaulting departments violated
relevant regulations, which stipulated that
government projects must be tendered publicly
to give a fair chance to all qualified contractors.
KILOMETRES
LENGTH OF LONG-RANGE RAIL PROJECT IN QATAR
TENDER FOR SUSTAINABLE CITY TO BE ISSUED IN FEB 2014
Diamond Developers to issue $82 million contract for construction within their $299 million Sustainably City project
DIAMOND DEVELOPERS WILL issue an $82
million contract for construction within their
$299 million Sustainably City project, situated in
the Dubailand district of Dubai.
“We will be issuing a tender for the construc-
tion of a school, a university and a planetarium
by February,” said Faris Saeed, chairman.
The company will also construct 500 villas in
the development, which will be handled by its
in-house construction arm, Jeet Contracting.
“We are expecting to get the building permit
soon from Dubai Municipality to start construc-
tion of the first phase of villas. We plan to hando-
ver the first phase by end-2014.”
Saeed added that the master planning and
project design has been developed by the in-
house team. Set for completion in 2015, Dubai
Sustainable City is expected to feature a green
belt with 20,000 trees and a 5,000 square foot-
long water canal with a tourist minaret. At least
20% of the construction area is planned to be
built with eco-friendly materials.
The project will also feature 182,000sqm of
solar farms, which will provide for 50% of the
cooling energy in the development.
Saeed also added that all sewage water
will be recycled, and homeowners will not be
charged for services, community fees and main-
tenance fees for their villas.
The community centre and retail wing are
expected to generate enough income to cover
their expenses.
9JANUARY 2014 MID
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FOLLOWING THE GOVERNMENT crackdown on undocumented labour-
ers in the country, the Saudi construction sector is reportedly recovering
following a slump in productivity.
Construction workers are being given temporary jobs that last the dura-
tion of on-site construction activity. While the private sector prefers taking
loans to indulge in construction, high labour costs act as decisive factors in
the final decision. Saudi individuals choose expat workers from Egypt and
South-Asian countries.
After the crackdown by the authorities, Saudis are apprehensive about
employing undocumented workers for fear of penalty. Many contracting
establishments, a major source for expat labour in the Kingdom that were
functioning in violation of rules and regulations, have also closed down.
Statistics by the Saudi Council of Chambers show there were 200,000
registered contracting companies before the crackdown, and the number
has nearly halved since the campaign began.
Riyadh, Jeddah and Dammam’s labour markets are reportedly largely
dominated by undocumented expat workers.
SAUDI CONSTRUCTION ON ROAD TO RECOVERY SAYS COUNCIL OF CHAMBERS
STAYING ON TRACK: BIG PROJECT ME FINDS OUT WHY THE GCC RAILWAY IS VITAL FOR THE FUTURE – PAGE 22
JOB PROSPECTS FOR ENGINEERS TO INCREASE IN DUBAI
Dubai hosting Expo 2020 will create job opportunities for engineers
Engineer Essa Al Maidoor, chairman of the Society of Engineers - UAE said Dubai host-ing the Expo 2020 would create numerous job opportunities for engineers in the country and region.
At a roundtable conference held prior to the Arabian Tunnelling Conference & Exhibition, Al Maidoor, who is also the director-general of the Department of Health Authority said the number of engineers in the country had increased from 26,000 in 2011 to 31,000 in 2013.
“It’s too early to accurately predict how many engineers will be needed in the city to prepare for the Expo,” Al Maidoor said.
However, he was quick to add that there was a definite chance that openings would increase on the back of more work.
“There will definitely be an increased demand for them since projects will be under-taken to develop infrastructure,” he said.
UAE CONSTRUCTION MANUFACTURERS GIVEN 2014 DEADLINE FOR REGULATION
Unified building code to be applicable on products not covered under ESMA regulations
MANUFACTURERS OF CON-
STRUCTION materials across the
UAE have been given the deadline
of 2014 to regulate their products
under the Emirates Authority for
Standardisation and Metrology
(ESMA)’s mandatory registration.
The unified building code will
be applicable on products not
covered under ESMA’s regulations,
a senior official is reported to have
said.
An initiative by ESMA and the
Gulf Standardisation Organisation
(GSO), the unified code is expected
to come into effect by next year and
cover multiple construction materi-
als, such as paints, glass, flooring
and ceramics and so on.
“We will monitor not just room
air-conditioners and central-air
conditioners, but the refrigerants
(chemicals used as coolants in
air-conditioners) too,” said Abdulla
Abdelqadir Al Maeeni, director of
ESMA conformity affairs depart-
ment. “We are also reviewing the
situation in existing buildings,
which use central air-conditioners
and big air-conditioning units as
well as duct types.
“Air-conditioning accounts for
at least 50% of electricity consump-
tion in the UAE,” he added.
While manufacturers of more
than 800 construction materials
have already obtained optional
standards from ESMA, these are
not mandatory and will have to be
certified by the conformity depart-
ment of ESMA by 2014.
Some construction materials
and sanitary products for water
pipelines, like PVC pipes, will have
to undergo third-party laboratory
tests for conformity with interna-
tional standards. “Our inspectors
will visit local factories to inspect
production lines, to ensure that
these materials are produced,
according to global standards,” Al
Maeeni added.
Saudi contractors wary of employing undocumented workers due to penalties
CONTRACTORS
THE NUMBER OF CONTRACTORS IN KSA HAS HALVED SINCE THE CAMPAIGN BEGAN
200,000
TAKING FLIGHTEarlier this year, the International Air Transport Association said that the Gulf countries are investing more than $313 billion into airport development to help manage a surge in passenger traffic, which is being driven by six of the region’s major airlines.
The UAE is leading this investment drive, with more than $23 billion spent on developing its airport infrastructure, including $15.79 billion in Dubai alone. The following is a breakdown of the various projects across the GCC:
UAECOST OF MAJOR UAE AVIATION PROJECTS:
n Dubai Int Airport Concourse 4 and Terminal 4 expansion $7.8 billion
n Abu Dhabi International Airport expansion $6.8 billion
n Al Maktoum International Airport $3.3 billion
n Dubai International Concourse $3.0 billion
n Abu Dhabi International Airport has also launched a mega project, the purpose of which is to increase the capacity of the airport from 11 million passengers to 30 million passengers annually. The cost of the project will amount to $6.8 billion
n Construction was scheduled to begin in Q2 2012, with completion due in Q1 2017
n The largest contract awarded in the UAE was the joint venture led by Turkey’s TAV to build the Midfield Terminal building at Abu Dhabi International airport worth $2.8 billion
KSATHE EXPANSION OF KING ABDULAZIZ INTER-NATIONAL AIRPORT (JEDDAH INTERNATIONAL AIRPORT) IS THE LARGEST PROJECT UNDER WAY IN THE AVIATION SECTOR
n The expansion project will cost $7.2 billion
n The capacity will be increased from 17 million to 30 million passengers annually
n Jazan, Abha, Al Qasim Airports $10.7 billion
BAHRAINn Expansion of Bahrain
International Airport $4.8 billion
n Aviation 16% of total budget for 2013
n Average flights Bahrain International Airport handles a week: 580
QATARn New Doha
International Airport $15.5 billion
n Aviation 13% of total budget for 2013
KUWAITn $3.3 billion
Kuwait International Airport (KIA) terminal will open in September 2016
n Initial terminal capacity will be 13 million passengers annually, with plans to increase this to 25 million and 50 million through further development
n Expansion of Kuwait airport valued at $6.0 billion
n Aviation 9% of total budget for 2013
OMANOMAN IS CARRYING OUT PLANS FOR THE CONSTRUCTION OF SIX NEW AIRPORTS AND THE EXPANSION OF THE EXISTING AIRPORTS AT MUSCAT AND SALALAH
n The plans include a new international airport at Duqm which is due to be operational by 2014
n Development of Muscat International Airport is worth $1.8 billion
n The Salalah Airport project requiring an investment of $765 million
n Muscat International Airport new terminal project value $1.8 billion
n Aviation 6% of total budget for 2013n Percentage year-on-year increase of passengers handled at
Muscat International Airport: 12.7%
10 JANUARY 2014MID
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THE BIG PICTURE BIGPROJECTME.COM
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12 JANUARY 2014MID
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IN PROFILE DAVID WELCH BIGPROJECTME.COM
“WE WORK INSIDE OF OTHER SOCIETIES, I COVER EUROPE, NORTH AFRICA AND THE MIDDLE EAST, AND THEY’RE ALL VERY DIFFERENT CULTURES AND SOCIETIES, AMONGST THEMSELVES EVEN. SO I THINK THAT WE CAN BECOME A MORE SUCCESSFUL COMPANY, THE MORE WE CAN UNDERSTAND THAT AND BECOME A PART OF IT”
13JANUARY 2014 MID
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IN PROFILE DAVID WELCH
Bechtel’s David Welch sits down with Big Project ME’s Gavin Davids to explain why his international diplomacy experience will benefit his firm as it
steps up operations in the Middle East and Africa
THECONSTRUCTION
DIPLOMAT
When you’ve helped shape the USA’s
foreign policy in the Middle East,
you might think you’ve done enough
to mark your life as one of some
consequence. If you then throw in the fact that
you’re a former US Ambassador to Egypt, you
may be entitled to think you’ve done enough to
be remembered by the world.
And when you’re a former Assistant Secretary
of State for Near Eastern Affairs who has helped
bring together two formerly implacable foes
and put them on a path to full diplomatic and
commercial engagement, then you might even
claim to have helped alter history.
But if you do think all of those things, then
you’re not David Welch. The former Assistant
Secretary of State for Near Eastern Affairs is a
man who doesn’t believe in looking backwards.
Despite all his achievements over 30 years as a
career diplomat, Welch has embarked upon a
career that he hopes will be equally rewarding, if
not more so.
Since late 2008, Welch has been the President
of Bechtel’s Europe, Africa and Middle East
regions and is tasked with managing strategy and
business development at Bechtel’s Civil business
unit in London.
He sat down with Big Project ME to discuss his
philosophy for Bechtel’s operations in the Middle
East and how he intends to use his decades of
regional experience to help Bechtel enhance its
legacy in the Middle East and North Africa.
“I joined the American diplomatic service as
quite a young man. I was fortunate enough to
have a very good career and was involved in a
number of serious foreign policy issues for the
United States. But I also thought that it would be
good to explore the possibility of a second career,”
he relates to Big Project ME during an interview at
Bechtel’s offices in Dubai Marina.
“I wanted to do it in something that would test
me individually and personally. You could say
that I wouldn’t be comfortable if I couldn’t stretch
myself. I was attracted to Bechtel as a possibility
because I’d seen some of their work over the
years, when I was working in Saudi Arabia and
Egypt, and I thought, ‘here’s a company that is
building things, that is helping people.”
“At the end of the day, when the project
is finished, everyone has a result and ideally
everything is done in an efficient and safe
manner. I was involved in exciting things when
I was in government, but the truth is that a lot of
projects didn’t get completed and things weren’t
done so efficiently, and sometimes there were
questions as to whether they helped or hurt
people. So it was a complete shift in focus in my
career, and I liked the ethical values of Bechtel
too. It’s an organisation that runs itself to a very
high discipline and standards. It doesn’t cut
corners when it comes to honesty, that’s very
important to me as a person,” he reiterates.
So what can a former career diplomat bring
to one of the largest construction companies in
the world? After all, as Welch would be the first
to admit, he’s not the best person to go to when it
comes to talking shop and making construction
related decisions.
However, that isn’t what he’s been brought
in to do. As he puts it, his job is to utilise his vast
knowledge of regional languages and customs
(he’s fluent in Spanish and Arabic) to ensure that
Bechtel is able to provide the best service possible
to its clients in the region.
“I think that having been involved in
government at the highest level, there are some
experiences that are valuable, but we shouldn’t
exaggerate that. Instead, what I think is that our
business is a global business. That means global
engagement and local performance,” says Welch,
outlining his philosophy.
“We work inside of other societies, I cover
Europe, North Africa and the Middle East, and
they’re all very different cultures and societies,
amongst themselves even. So I think that we can
become a more successful company, the more
we can understand that and become a part of
it. That’s a skill and an insight that I’m trying to
bring to this job.”
“Now, I have an advantage because Bechtel
has been in the Middle East, and in Saudi Arabia,
for nearly 70 years – 50 years in the UAE – so it’s
not like we don’t have some sort of knowledge
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15JANUARY 2014 MID
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IN PROFILE DAVID WELCH
base in the region, in fact, it’s quite sophisticated
in some cases.”
“The second point I’d say is that when you’re
involved in big decisions, what you don’t know
is at least as important as what you do know. The
biggest risk is when you don’t know you don’t
know something. I know a lot about thinking
through decisions and managing risk,” he says.
“That’s interesting in the corporate world,
because the standard can be, in some instances,
more clear. You’re running a business and the
focus is on the bottom line, but then in projects,
there are schedules, performances, budgets and
people. And then there are the intangibles. The
intangibles are the society and the environment
you’re operating in.”
With Bechtel being a privately held firm, there
isn’t a publicly traded balance sheet to draw on,
nor can it rely on the US government to bail them
out of its mistakes, so therefore, the quality of
decision making has to be absolutely spot on,
Welch points out.
Given the scope and scale of its projects in the
Middle East region, this is probably for the best.
Having been appointed, as part of a consortium
with Siemens, CCC and Almabani, to the $10
billion project to build Lines 1 and 2 of the metro
system, the pressure is on for Bechtel.
“A Saudi friend of mine told me the other
day that he’d been to an event where the deputy
governor of Riyadh was present, and he told
me that all the Saudis in the room said that it
was really important that this metro system gets
done, because this city needs world class public
transportation. But to do it is difficult, so (they
need to be) aware that we’re going to be affecting
their lives for several years now! (But) It’s great
that their leadership is immediately, from the top
down, signalling their support and interest in this
project, and that they’re looking to educate their
public that it’s not going to be an easy thing to do,”
he reiterates.
“We like working in Saudi Arabia, our
experience there has been very good. We’ve
done some good things with them and they’ve
respected that over the years. We have people at
the very top of Bechtel who have been going in
and out of the Kingdom for decades,” Welch says,
as he outlines the many challenges of working in
a city like Riyadh.
“The biggest challenge on the Riyadh Metro
is that it’s a city of five million people with
immensely complex traffic, and we’re going to
do two lines of metro through the densest part of
the city.”
“That’s what we’ve been hired to do. It’s going
to be both exciting and challenging. I’m sure they
thought very carefully about which companies
they wanted to choose, particularly for those two
lines, which are the biggest parts of the project.
Everybody at Bechtel, from Riley Bechtel down,
is riveted on this project and we’re determined to
begin it well and give the people of Saudi Arabia
the metro system they deserve.”
One area that has worried a number of
contractors in the Kingdom has been the lack
of construction materials available to them due
to the supply/demand imbalance throughout
the country. One major cause of the shortage
in supply is due to the conflict in Syria, which
has hampered the delivery of materials to Saudi
Arabia over land.
Coupled with the lack of labour now available
to them due to the Nitaqat ruling, there have been
serious concerns raised about their ability to
complete their projects.
However, Welch says that Bechtel already
came to the project knowing that this would likely
to be an issue and has prepared accordingly.
“We’ve already worked around that problem
in other projects and our logistical pipeline
doesn’t really run through Syria either. I know it
would be an issue for local contractors because
the Turkish truck trade is really important to
this area, but I don’t foresee it being a problem
for us. I’m not belittling the challenge posed by
a $23 billion investment and what it’ll mean to
the cement and steel market, but if you look at
the consortia, these are fairly big, substantial
companies with a lot of experience. They’ll be
organising themselves to meet these challenges,”
he asserts.
“I feel very good about our consortia,” Welch
adds. “We’re lean – with four companies – and all
have complementary skills. Almabani has worked
with the Municipality of Riyadh for a long time
– they’re a competent civil contractor, Siemens
is a world class, state of the art, rolling stock
provider and CCC is one of the most substantial
construction companies, not just regionally, but
globally as well.”
“THE BIGGEST CHALLENGE ON THE RIYADH METRO IS THAT IT’S A CITY OF FIVE MILLION PEOPLE WITH IMMENSELY COMPLEX TRAFFIC, AND WE’RE GOING TO DO TWO LINES OF METRO THROUGH THE DENSEST PART OF THE CITY”
Bechtel has set up a regional office in the UAE for its mining and metals business, as it seeks to improve service to clients in the GCC.
The GCC mining and metals sector has been identified as one of the main pillars of industrial diversification in the region and this trend is reflected in the scale of awards made during the last 12 months, which reached around $6 billion.
Two other factors that have driven growth of the sector are urbanization and industrialization of the GCC economies.
“We recognise the growing importance of the Gulf region as a strategic hub for our business. The opening of a regional office for our mining and metals business is a reflection of our ongoing commitment to this region,” said David Welch, president of Europe, Africa and Middle East at Bechtel.
“Our mining and metals business has a rich history here. Bechtel has been present in the region for around 70 years. We are optimistic about the business opportunities in the region and we believe the outlook is strong. In addition, the region has excellent connections to European and North African markets. The regional office puts us closer to our customers,” he added.
The new regional office will draw upon Bechtel’s global experience and expertise in Mining & Metals and will offer services from master planning studies through to engineering execution.
Bechtel has completed several hundred major mining and metals projects and more than 1,000 studies across six continents around the world.Some of their projects have included 26 aluminium smelters, 42 major copper projects and 36 major coal projects. The company is currently constructing one of the world’s largest greenfield aluminium smelter projects – Ras Al Khair – for the Ma’aden Alcoa joint venture in Saudi Arabia.
IMPROVED SERVICE
16 JANUARY 2014MID
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IN PROFILE DAVID WELCH BIGPROJECTME.COM
While he does concede that the project could
have an impact on the pricing of the materials, he
remains assured that Bechtel has kept a handle
on things, so as to ensure that it doesn’t get too
out of hand.
“It’s happened in the past, where if the market
heats up, you can have unexpected inflation
spikes. Those risks need to be managed.”
“We pay very close attention to the
procurement side, it’s really just because we do
so much, that we have to be really close to it,” he
explains to Big Project ME.
“If you’re buying stuff for an airport, then you
visit the factories in China or in India. You see
what the manufacturers actually do, because
they’re producing something that might be
machined, that’s purpose built, replacing it would
be very hard and you have to absolutely sure
about the quality,” Welch asserts.
Although Saudi Arabia and the rest of the GCC
remain the major focus for Bechtel and David
Welch, he tells Big Project ME that his ambitions
for the construction giant extend much further
than that. Having had projects in Libya and Egypt
prior to the Arab Springs in those countries, he
says that Bechtel is now looking at assessing
the risks involved with returning to them and
finishing the job.
“To be honest, we’re risk averse when it
comes to security. We’ve had a lot of difficulty in
some places and we’re very conscious about the
security of our employees and those who work on
our projects,” Welch says.
“We have an electricity project in Sirte, Libya
– we’re the construction managers for it, but we
have to manage that from afar because of security
concerns. We’re not happy with that, to be honest
with you. My colleagues, the construction and
engineering guys, they’re hands on people and
they like to be right there on site. There’s a lot of
dissatisfaction when we have to manage from
afar. It’s possible to do, but it’s not the way we’d
like to do it.”
“In Tunisia, we didn’t have any ongoing work,
but we were looking at a couple of opportunities,
but we decided not to. So yes, that’s been put on
the back burner. In Egypt, we still have ongoing
work, and the recent disturbances were a bit of a
shock and the American and British governments
were advising some citizens not to travel there, as
well as some Gulf governments too, so we have a
lot of employees who are very cautious of those
travel warnings, but we think that we can operate
in Egypt effectively,” he says.
“In Algeria, we’ve had a number of projects
there in the past, but we haven’t got any current
businesses and we’re not pursuing it right now.
Morocco would be fine, but our track record there
is not very deep, but we’ll definitely be taking a
closer look at Morocco.
“We’ve also opened a country office in
Mozambique and we’ve just finished a LNG plant
in Angola. We’re involved with a country master-
plan and institutional project management
for the government of Gabon, which is a very
interesting project. We’re also involved in a feed
contract with Anadarko in Mozambique. So we’ve
opened the country office there.”
“Sub-Saharan Africa is a growing area
of interest for us, we’re devoting a lot more
resources there and it’ll be a lot easier to service
that market from here in Dubai,” he says, as he
brings the interview to a close. n
“WHEN YOU’RE INVOLVED IN BIG DECISIONS, WHAT YOU DON’T KNOW IS AT LEAST AS IMPORTANT AS WHAT YOU DO KNOW. THE BIGGEST RISK IS WHEN YOU DON’T KNOW YOU DON’T KNOW SOMETHING”
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18 JANUARY 2014MID
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ON SITE AKOYA BY DAMAC MASTER DEVELOPMENT BIGPROJECTME.COM
Project Name Akoya by Damac
Project Type Mixed Use Development (Residential, Sport, Retail)
Project Developer Damac Properties
Contractors Trojan General Contracting, Ghantoot Contracting and Ascon Contracting
Golf Course Design Gil Hanse Golf Course Design
19JANUARY 2014 MID
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ON SITE AKOYA BY DAMAC MASTER DEVELOPMENT
In May of this year, Damac Properties, the
largest private property developer in the
Middle East, announced plans to develop an
18-hole Championship Golf Course, right at
the heart of its 3.91 million square metre master
planned development, Akoya by Damac.
Since then, work on the project has pro-
gressed at pace, with the property developer
keen to keep to its five year construction plan
despite the mammoth size of the project. In
fact, so confident is the developer, it recently ac-
quired an additional 1.27 million square metres
of land for the project, bringing its total area to
3.91 million square metres.
Included across the Akoya project will be a
variety of residential, retail, leisure and educa-
tional facilities, says Niall Mcloughlin, the senior
vice president of marketing and communica-
tions at Damac, who took Big Project ME for a
tour of the site.
Of course, at the heart of the project will be
the Trump International Golf Club, Dubai – an
18 hole PGA Championship Golf Course which
is being developed in collaboration with Damac.
The 7,205 yard, par 71 course will be developed
by renowned golf course architect, Gil Hanse.
Having previously designed the course for the
2016 Olympics in Brazil and spearheaded the
redesign of the famed ‘Blue Monster’ at Trump
National Doral, Miami, Hanse was the perfect
choice for the Dubai course says Mcloughlin.
“Trump International Golf Course had a
relationship with Gil Hanse and we very quickly
came to an agreement that they would do the
golf course in Dubai. It’s their first golf course in
Asia, which is a very important market for them
Big Project ME visits Akoya by Damac, the Trump backed luxury golf and housing estate that is set to prove that Dubai’s largest private property developer is ready to move over to master development. Gavin Davids reports
MASTER PLANNED COURSEThe Trump International Golf
Club course will be designed by the renowned Gil Hanse.
AKOYATEES OFF
and their global strategy. Trump is a very well
known brand that’s associated with luxury, they
were aligned with what we wanted to do and
deliver. We categorically said that we wanted the
best golf course in the region. It has to be,” he
tells Big Project ME at the Akoya site.
“That was associated with the other product
portfolios of Damac, which was Fendi, which
was Paramount. It was the perfect mix to deliver
a lifestyle community. It was the extension of a
relationship that was already working. We had
partnerships with Fendi, with Versace and with
Paramount. These were relationships that were
working, that we liked and that understood
the value proposition that branded residential
brings to the market, so they were happy to work
with us on the extension of the relationship.”
While it’s a given that the bulk of the land
area will be taken up by the golf course,
Mcloughlin adds that Damac has quite a few in-
teresting plans in place for the remaining space.
“Out of the 3.91 million square metres, there
“THE SCHEDULE ISN’T 24 HOURS, BUT IT’S A COMPREHENSIVE SCHEDULE OF SIX DAYS A WEEK. IT’LL RAMP UP AND DOWN AS TIME MANAGEMENT DICTATES”
20 JANUARY 2014MID
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ON SITE AKOYA BY DAMAC MASTER DEVELOPMENT BIGPROJECTME.COM
will be approximately 1.67 million square metres
built. So it’s not going to be a very densely built
project. That’s one of the components of the
Akoya Park, which is a 418,000 square metre
green park. Dubai is known for residential living
on golf courses, but we don’t think that there’s
anything that will compare to our residents
opening their back doors and having a 418,000
square metre garden,” he enthuses.
A number of main construction contracts
have been awarded for the project, with 677
luxury villas awarded to contractors, while 480
“THE MAIN CONTRACTORS ARE ON BOARD FOR MORE THAN 50% OF THE VILLAS, AND FOR 30% OF THE APARTMENTS, THE MAIN CONTRACTORS (HAVE BEEN APPOINTED)”
apartment units have also had contractors
appointed.
“Trojan General Contracting is on board
for 446 villas in various clusters and Ghantoot
Contracting is on board for 231 villas,” says
Mcloughlin. “Ascon is on board for six of the low
rise buildings, which are ground plus seven. So
the main contractors are on board for more than
50% of the villas, and for 30% of the apartments,
the main contractors (have been appointed).”
Prior to this, work orders were placed with
Al Naboodah Contracting Company for the bulk
earthworks required for the project. In addi-
tion, a 132KV substation has been built with
ETA, while the Desert Group were appointed
to oversee the construction, completion and
maintenance of the golf driving range.
More than 100 pieces of heavy machinery
were used to shape the land, Mcloughlin says.
“We’re in talks with schools and retail centres
to get them on board,” he adds. “The catchment
World-renowned golf course architect Gil Hanse has been confirmed as the designer for the golf course at Trump International Golf Club, Dubai, set in the heart of the ‘AKOYA by DAMAC’ master development.
Hanse is one of the most respected names in the industry and has not only been commissioned to design the course for the 2016 Olympics in Rio De Janeiro in Brazil but was also hired last year by Donald J. Trump for the renovation of the famed, ‘Blue Monster’ at Trump National Doral, Miami which is currently home to the World Golf Championships - Cadillac Championship, an official PGA TOUR event.
The 7,205-yard, par 71, 18-hole Championship course is the focal point of ‘AKOYA by DAMAC’, a 3.91 million square metre master plan development on Umm Sequim Road, just 10 minutes from Sheikh Zayed Road.
“We have always aspired to design courses around the globe and Dubai is one of the most sought after golfing destinations in the world,” said Hanse. “We are looking forward to bringing forth our expertise to develop a strategic, fun and interesting course, which will fit into its surroundings, while being accessible for all.”
Hanse has been charged with delivering the finest course in the Middle East, with the goal of hosting a professional tour event.
In addition to the course Hanse will also oversee the development of the academy, double-ended driving range, chipping area and putting greens, which will all reflect the same challenges and tests on the course itself.
“Gil is easily one of the most sought after golf course designers in the world today and we have enjoyed working with him and his team on ‘The Blue Monster’ at Trump National Doral,” said Mr. Donald J. Trump, Chairman & President of The Trump Organization. “We are confident that Gil will bring his unique perspective and expertise to what will soon become the greatest golf course in the region.”
GIL HANSE TO DESIGN COURSE
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ON SITE AKOYA BY DAMAC MASTER DEVELOPMENT
GOLF COURSE SPECIFICATIONS
n 18 holes
n 7,205 yards
n Par 71
PROJECT SPECIFICATIONS
n Total area: 3.91 million square metres
n Total built area: 1.97 million square metres
n Akoya Park area: 418,000 square metres
outlets and a 2,322.5 square metre grocery sup-
porting the residence.”
In order to keep up to date, Mcloughlin says
that the thousands of workers on site will have
to stick to a regimented work schedule that will
see them continue the impressive pace they’ve
set in 2013.
“The schedule isn’t 24 hours, but it’s a
comprehensive schedule of six days a week.
It’ll ramp up and down as time management
dictates.”
“Building something like this is much easier
than building a 84 storey tower, for example.
That’s because of shorter build terms and you
don’t have the complexity in a villa. A villa can
be built in 14 months; it isn’t any more difficult
than anything we’ve been doing successfully for
the last 10 years. The challenge here, which we
believe we’ve overcome, is bringing a mix to the
development, which adds value to it,” he asserts.
“The infrastructure is another challenge. Eve-
rything within the development, we’ll be doing,
supported by the Dubai Government of course,
in relation to the water supply and the electricity
supply, which is being fed to the power station.
The infrastructure internally is being developed
by Damac, and that’s a major challenge, bringing
the infrastructure along with the development.
Projects such as this, as long as they’re planned
correctly, to build them isn’t super challenging.”
With a team of 279 people already employed
in Damac’s technical and development depart-
ment, the Akoya project is set provide the base
for the developers plans to move away from be-
ing a property developer to a master developer.
As Mcloughlin puts it, there is a huge op-
portunity awaiting Damac and it only needs the
developer to reach out and seize it. He’s crystal
clear that this is exactly what it intends to do.
“Historically, in the UAE, Damac has always
been a plot developer, where we buy a plot
from a master developer and we build a tower.
We’ve always been looking to become a master
developer because we believe that we have
very strong capabilities. Internally, we have
over 1,000 employees, so we have very strong
capabilities, from project management to MEP
to interior design and so forth.”
“We looked at our portfolio; we looked at
what the market was missing and what would
complement the offering within the lifestyle
space within the market, and we believe that if
there’s a Trump golf course in Dubai, it’ll have a
lot of appeal to the golfing community, golf tour-
ists will come to Dubai, and also the value of golf
courses add to residential components.” n
COMPREHENSIVE SCHEDULEThe number of workers onsite will adjust according to the time management of the projects.
area here is tremendous. We have Sports City,
Motor City and Arabian Ranches all within driv-
ing distance. So the spa, the clubhouse and the
retail centre will be very popular, we think.”
Given its size, it’s only natural that the con-
struction schedule for the project comes under
scrutiny, but Damac remains adamant that it
will meet its scheduled completion dates. The
first stage of the villas will be completed in the
first quarter of 2015, while the actual golf course
is scheduled to be finished by the end of 2014.
“Because we’ve broken up the contractors,
they’ll work in parallel with each other,” says
Mcloughlin. “We’re looking at a five year roll out
for the whole development.”
“The end of 2017 (is when full completion
will be achieved) and we anticipate things like
the retail centre. It’s 8,825 square metres of retail
and we’re in final negotiations with anchor ten-
ants, and we’ll be signing HOTs within the next
few days. It will have top end retail and luxury
“ITS TRUMP’S FIRST GOLF COURSE IN ASIA, WHICH IS A VERY IMPORTANT MARKET FOR THEM AND THEIR GLOBAL STRATEGY. TRUMP IS A VERY WELL KNOWN BRAND THAT’S ASSOCIATED WITH LUXURY, THEY WERE ALIGNED WITH WHAT WE WANTED TO DO AND DELIVER”
22 JANUARY 2014MID
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RAILWAY CONSTRUCTION BIGPROJECTME.COM
Big Project ME speaks to those involved in the construction of the region’s biggest railway projects to find out what sort of challenges they expect to face, and how they’re ready to overcome them. Gavin Davids reports
STAYINGON TRACK
The long anticipated railway construction
boom in the GCC finally kicked off last year
with billions of dollars of major rail project
contracts awarded across the region.
Forming a sizeable chunk of the $108 billion
contracts awarded in 2013, rail seems set to be
the region’s most ambitious and exciting project
sector for a good while. It is estimated that there
are $194 billion worth of rail projects currently
underway or in the pipeline.
The first three quarters of 2013 saw more
than $30 billion worth of rail construction
contracts awarded across the GCC, a staggering
jump from the $3.9 billion awarded during the
same period in 2012. The reason for this massive
jump was the awarding of the $22 billion
construction contracts for the Riyadh Metro in
June of this year.
Furthermore, when it comes to overland
rail, the UAE’s Etihad Rail has been one of the
most prominent projects in the region, with the
first phase of the project well underway. In fact,
the next 12 months will see a surge in railway
project activity, with Oman looking to set up its
own national railway, while Mecca, Medina and
Dammam are all looking to develop metro and
light rail networks.
Meanwhile, the Metro Jeddah Company has
already announced that the Jeddah Metro will
most likely be awarded in the first half of 2015.
This railway activity isn’t limited only to
the GCC, with Iraq keen to build up its railway
network while working on plans to develop an
elevated metro in Baghdad. In addition, there
are numerous opportunities in Northern Africa
for rail projects, with a high speed railway been
Tangiers and Casablanca most prominent
amongst them.
As a result of all this rail activity, Big
Project ME sat down with a number of railway
construction experts to find out just what these
projects will mean for the future of the region,
both economically and socially.
Given that all the GCC projects will tie up to
create a region wide railway network, the need
23JANUARY 2014 MID
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RAILWAY CONSTRUCTION
priorities as between passenger and freight
services and settling the immigration and
customs logistics at the many borders that will
be crossed.”
“It is imperative that the GCC countries work
together to resolve the outstanding challenges
if they are to realise the improved efficiencies
in transportation and logistics that the scheme
offers, as well as furthering the vision of a more
closely integrated GCC community,” Butcher
points out.
Dr Nadhem Bin Taher, the executive director
of the National Transport Authority, adds that
this cooperation between GCC countries has
already begun, with plans for a GCC Railway
Authority already in motion, so as to regulate
inter operability issues and the connections
between each country.
“This has been discussed in the GCC council
and will very soon be raised with the GCC
supreme council, I don’t have an exact date but
this is the plan,” he tells Big Project ME.
“Connecting the whole GCC line and the
UAE network, there’s a part that’s around
580km, which is part of our national network.
Our national network is around 1,200km, so
we’re connecting all these issues together. Saudi
Arabia is working on (their railway) right now,
Qatar is working, Oman is working and we are
working,” Dr Nadhem explains.
“Now we are studying the connection and
interoperability issues, immigration issues, trips
issues, taxes, and customs, all these issues are
studied right now to see how we can go further
from this perspective.”
“In order to have a feasible railway industry,
you need to take care of all these issues. If you go
to Europe, you can take the Euro rail, there are
all these issues like customs and immigration,
they’ve solved it.”
“So all these will be studied by different
departments and the responsible authorities,
like the Ministry of Interior, the Ministry of
Immigration, the Customs Authority and the
National Transport Authority. We’ll work with
our colleagues in the GCC to enable the GCC
railway to be a good tool for transportation (in
the region),” he adds.
“NOW WE ARE STUDYING THE CONNECTION AND INTEROPERABILITY ISSUES, IMMIGRATION ISSUES, TRIPS ISSUES, TAXES, AND CUSTOMS, ALL THESE ISSUES ARE STUDIED RIGHT NOW TO SEE HOW WE CAN GO FURTHER FROM THIS PERSPECTIVE”
to get all facets of its construction spot on is vital,
says Trevor Butcher, Partner – Head of Finance
and Projects, at DLA Piper Middle East.
“The 2,177km GCC rail network is set to link
all six Gulf states for the first time in history,
providing a welcome alternative to air, sea and
road for both goods and passengers,” he says.
HIGH SPEED RAIL WORKSSaudi Arabia is spending $25 billion to develop its railway networks across the country.
“This will be a fantastic achievement for
the GCC and the wider Middle East as a whole.
The complexity of the project should not be
underestimated however, with ambitious
time frames and numerous developmental
and operational challenges remaining to be
overcome, such as resolving the aims and
VALUE OF RAILWAY CONSTRUCTION PROJECTS IN THE GCC:n $25 billion -
Worth of rail projects underway in KSA
n $25 billion - Total amount to be invested in Qatari rail projects
n $14 billion - Construction of the GCC railway in Oman
n $12.9 billion - Value of Oman National Railway Project
n $11 billion - Total worth of Etihad Rail project in UAE
n $10 billion - Value of National rail network construction in Oman
n $6.6 billion - Value of East - West Railway network in Kuwait
24 JANUARY 2014MID
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Butcher emphasises that for the GCC Railway
to work, there will need to be close collaboration
and consultation to ensure an alignment of
objectives, standards and time frames between
the various long range and urban rail projects.
Two men who are intimately involved in the
development of these railway systems and their
accompanying infrastructure are Joerg Scheifler,
CEO of Siemens Infrastructure and Cities,
Middle East and Julian Hill, regional managing
director, Rail for Atkins.
Scheifler says that one of the biggest issues
the region’s rail projects is going to face is
meeting their own targeted deadline, which is
due to the rate at which work is being completed
across the region.
“Basically, from my own perspective, I don’t
think they’ll all make it together, by 2018. We are
already at 2014. The Saudis are well ahead, the
tracks exist already, so I’ll say that they can make
it. The UAE is next. Phase one of the network
is under construction, so I think they’ll make it
too. But others like Oman, Kuwait and Bahrain,
or the link to Qatar, I think those will take longer
than 2018. But this is understandable. Building
a rail network is very complex, and especially in
countries where there is no rail history.”
While Julian Hill is slightly more optimistic
about the time line for the projects, he stresses
that it’s vital for the right level of dialogue and
planning to take place now, so as to avoid issues
later on.
“From a historical perspective, for a cross
border railway, I think the level of coordination
and shared vision for the railway, is at a pretty
good level. We’re encouraged by the fact that
there is a working group to drive things forward
and to resolve potential issues at the earliest
stage,” he explains to Big Project ME.
“The Kingdom of Saudi Arabia has led the
track standardisation (gauge width and axle
load), to ensure freight trains can technically
move seamlessly between countries. Common
clearance envelopes and train control systems
will be adopted. Diesel trains have also
been adopted with space provisions in the
infrastructure for potential electrification in the
future,” Hill says.
Of course there are other problems that
contractors, consultants and developers will
face when it comes to the actual construction of
the railways. One major issue is the availability
of skilled labour and materials to work on these
complex projects.
Given the delicate situation in the Kingdom,
thanks to the Nitaqat ruling, and the demand
in Qatar and Dubai, ahead of the FIFA World
Cup 2022 and Expo 2020 respectively, sourcing
“AS A SECTOR, WE’RE NOT JUST BURYING OUR HEADS IN THE SAND – THERE’S A HUGE AMOUNT OF PLANNING AND COORDINATION TAKING PLACE IN ORDER TO HELP MITIGATE THE RISK, BUT IT’S REALLY IMPORTANT THAT WE DEAL WITH IT AS AN INDUSTRY”
MITIGATE RISKContractors and consultants are planning ahead to reduce the margins of error on these projects.
25JANUARY 2014 MID
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RAILWAY CONSTRUCTION
“IT IS IMPERATIVE THAT THE GCC COUNTRIES WORK TOGETHER TO RESOLVE THE OUTSTANDING CHALLENGES IF THEY ARE TO REALISE THE IMPROVED EFFICIENCIES IN TRANSPORTATION AND LOGISTICS THAT THE SCHEME OFFERS, AS WELL AS FURTHERING THE VISION OF A MORE CLOSELY INTEGRATED GCC COMMUNITY”
skilled labour and materials is going to be vital
for the success of these projects, say the experts.
“That’s really an issue,” says Scheifler, “I’m
always saying that we’re now living in the
decade of rail in the Middle East. We have
projects popping up everywhere. We’re talking
about the main line projects, but in addition, we
have many metro and tram projects coming up.
In Saudi we have numerous metro projects, in
Qatar we’re in the midst of the tender process.
In Abu Dhabi, there are plans for a metro and
light rail system as well. All of that falls under
the umbrella of rail, and all of that needs
expertise. So at the moment, there are a lot of
opportunities out there,” he asserts.
“I think this is the most important topic, if
you want to do your project successfully. What
we’ve done is set up a recruitment programme,
which on one hand looks into the whole
organisation, as we have projects globally. So
we first look internally, where we have expertise
available. We recruit from within, but that’s not
enough. We also have to approach (people)
externally. We have professional recruiting
agents (on the case).”
“But I would say that, at the end, the key
will be remuneration. You have to offer proper
packages to attract the best people. It’s not too
complex a task, but one that needs to be taken
very seriously.”
Hill points out that the fact that the market
is talking about these issues is in itself a positive
indication that the situation will be addressed
sooner, rather than later.
“As a sector, we’re not just burying our heads
in the sand – there’s a huge amount of planning
and coordination taking place in order to help
mitigate the risk, but it’s really important that we
deal with it as an industry,” he says.
“We also need to look beyond rail at all the
other major infrastructure activity taking place
in the region to see the bigger picture.” n
VALUE OF KSA RAIL PROJECTS:n $7 billion - Saudi
Landbridge Railway
n $5.6 billion - Jeddah Monorail
n $5.3 billion - Phase one of Mecca Mass Rail Transit project (MMRT)
COME TOGETHERThe GCC countries
have to work together to create unified
standards and codes.
26 JANUARY 2014MID
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LOCAL CONTRACTORS BIGPROJECTME.COM
Big Project ME looks at the concerns local contractors in Dubai share in the wake of the Expo 2020 announcement
A CALLFOR CAUTION
In the wake of the World Expo 2020 being
awarded to Dubai, expectations amongst
the local construction industry have risen
in anticipation of new tenders and project
announcements.
While it’s likely that the major players in the
construction market will dominate the flagship
projects, there remains tremendous opportunities
for local contractors, especially those in the
‘medium to large’ bracket, experts say.
In a report published online in November 2013,
Ventures Onsite said that it “strongly believes that
Dubai will be prepared to see further economic
development, enhanced infrastructure and a
host of new employment opportunities, along
with an even stronger global reputation and new
architectural landmarks.”
“This will offer a huge lot of opportunities to all
industries in the country, as well as in the region,”
the report added.
Dr Imad Al Jamal, Contracts and Development
consultant expert, mediator and arbitrator at the
UAE Contractors’ Association, agrees with this
assessment. He tells Big Project ME that it’s likely
that there is going to be a surge in investment
over the next two years that will benefit the local
contractors market.
“With the upcoming Expo 2020, of course the
contracting market is ready and serious (about
taking advantage of the opportunities available).
They’re serious about getting into the business
available, but it’s not going to be soon. It’ll be
at least a year or two before we see the start of
business for 2020, it’ll be in 2014 or 2015,.”
However, he remains optimistic about the
market overall, given what he calls the ‘upward
trajectory’ that he’s noticed and the lessons that
contractors and investors have learnt from their
struggles in 2008 and 2009.
“It’s a little bit more conservative in terms of
attitudes, on the part of investors, especially in
the private sector. The government is going ahead
with all its projects, but the private sector is a little
bit more conservative, bearing in mind what has
happened,” he says.
“But nevertheless, prospects are pretty good,
although the rents are pulling things a little bit
backward as they have increased. The price of
property has increased as well, so that hasn’t
helped. Hopefully the government will (step in).
I think they’ve issued some decrees on rents and
caps and things like that,” he adds.
The call for government intervention is one that
is echoed by Milind Deshmukh, managing director
at SAM Contracting. The head of a local contractor
that has operated in Dubai since 2006, Deshmukh
has seen both the extreme highs and lows that
have swept Dubai’s construction market.
“There is no government regulation for
prequalifying contractors. You can start a
contracting company tomorrow and take on a
$130 million job just because your price is good.
In this market, the government hasn’t put any
standards as to who should do what. It’s a very
serious problem.”
However, as Dr Al Jamal points out, there has
been significant improvement in the way local
contractors are now conducting their business,
a consequence of the problems they faced in the
aftermath of the bubble collapsing.
“I think the best thing they’ve learned from the
lesson (of 2008) is to be very fair and balanced in
their pricing, in their cost controls and planning.
It’s no more (so easy), especially with the medium
and big sized companies,” he says.
“We’re talking about the medium to big sized
companies. Competition has become more
reasonable now, with appreciation of prices,
inflation, economic factors, both internally and
regionally. So we’re seeing better deals being
executed, more awareness of the legal and
contractual obligations of the contracts that they
enter. And of course, the cost control of their
operations internally, within the company or other
contractors or suppliers.”
However, he warns that the resurgence of the
construction market in Dubai will only attract
more interest from the rest of the world, being one
of the healthiest construction markets globally.
This is something that Deshmukh is well aware
of, pointing out that:
“The competition is growing, because of the
regional situation. There are more expats coming
and setting up business here. This is driving the
prices down and the bottom line is completely
eroded, making the market unstable.”
Despite this, Dr Al Jamal says that he’s
convinced that lessons have been learnt:
“Things are moving in the right direction, but
we just have to be a little bit patient. 2020 is not
going to be an easy task, there are a lot of things (to
do) and billions of dollars are going to be invested,
both locally and internationally. So let’s wait and
see,” he says optimistically. n
“IT’S A LITTLE BIT MORE CONSERVATIVE IN TERMS OF ATTITUDES, ON THE PART OF INVESTORS, ESPECIALLY IN THE PRIVATE SECTOR. THE GOVERNMENT IS GOING AHEAD WITH ALL ITS PROJECTS, BUT THE PRIVATE SECTOR IS A LITTLE BIT MORE CONSERVATIVE”
27JANUARY 2014 MID
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LOCAL CONTRACTORS
LESSON LEARNEDContractors have learnt to be ‘fair and balanced’ in their pricing, cost control and planning.
ww
w.cat.com
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w.caterpillar.com
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2013 Wolverine W
orld Wide. A
ll Rights R
eserved, CAT, C
ATER
PILLA
R, B
UILT FO
R IT, thier respective logos,“C
aterpillar Yellow,
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er Edge” trade dress as w
ell as corporate and product identity used herein, are trademarks of C
aterpillar and m
ay not be used without perm
ission.
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orld Wide. A
ll Rights R
eserved, CAT, C
ATER
PILLA
R, B
UILT FO
R IT, thier respective logos,“C
aterpillar Yellow,
” the “Pow
er Edge” trade dress as w
ell as corporate and product identity used herein, are trademarks of C
aterpillar and m
ay not be used without perm
ission.
30 JANUARY 2014MID
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MARKET REVIEW KUWAIT BIGPROJECTME.COM
Big Project ME provides a SWOT analysis of Kuwait’s business practices - and what it means for the construction sector.
UNTAPPED POTENTIALThe Kuwaiti private
sector is an untapped resource for
construction firms.
HIBER-NATION –THE KUWAIT STORY
31JANUARY 2014 MID
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MARKET REVIEW KUWAIT
largely inclusive of administrative opinions. A
well-placed source from the country’s market,
who requested anonymity for risk of commercial
repercussions, went so far as to call this inclusive
approach - accounting for and attending to every
opinion from the governmental sector - the reason
behind an eventual slowdown in the Kuwaiti
construction market.
Generally, it is the country’s spending policies
that have earned considerable flak over the years.
Geopolitical conduct has, in the past, weighed
down the economy of the country. Consequently,
the economic attitude of Kuwaiti planners wavered
towards welfare-systems and an overfed public
sector - resulting in an untapped private sector.
Member of the ruling family and one of the
government policies’ most influential critics,
Sheikh Salem Abdulaziz Al-Sabah, resigned in
February 2012 from his position as governor of the
Central Bank of Kuwait following his expressed
disappointment over increased public expenditure
of “unprecedented levels.”
The new year will be a busy one for
construction in the GCC; UAE continues
to race ahead of its peers in creating
renowned developments and intelligently
strengthening its economy on the world stage after
having bagged the Expo 2020. Countries like Saudi
Arabia and Oman are gaining attention for large
investments in their respective infrastructure -
most prominently those in rail.
As Qatar copes with the ticking countdown to
the FIFA World Cup 2022 and criticism regarding
its labour laws, Bahrain will have to deal with
a sluggish economy and a relatively plodding
construction market.
Amidst these GCC countries scurrying to meet
deadlines – of global events or economic targets
– lies Kuwait. Thought to be in a state of inertia at
one point, the country’s construction sector has, of
late resurfaced on the GCC’s map.
A recent news report published by Arab
Times stated the country is to spend $75 billion
on energy, power and housing projects by 2016.
Progress in the energy sector is already underway,
with proposals expected for the Clean Fuels Project
(CFP), a development worth $17 billion that is
expected to revamp the country’s Mina Abdullah
and Mina Al-Ahmadi refineries.
So it’s understandable why Kuwaiti
construction market is not taken lightly. Most
operators within the country recognise the vast
potential of the Kuwaiti infrastructure sector - an
asset often under-utilised by its own government.
“Development in Kuwait appears to be
curtailed by numerous changes to the government,
which have occurred at least every year for the past
few years,” says Paul Wouterson, regional director
for Faithful+Gould’s Kuwait offices.
“Accusations of corruption at all levels
throughout the government directly impact on the
level of trust within the leadership group and also
result in decision making being limited, which in
turn impacts on the number of projects being let
yearly,” he adds.
Wouterson is not alone in his scepticism
regarding the Kuwaiti government. A report
published by consulting services firm Deloitte
stated corruption as one of the country’s biggest
weaknesses hindering its growth.
“Corruption and political instability both
threaten the investment environment. This has
already resulted in projects being cancelled or
postponed. Poor growth rates and uncertainty
about major projects dissuade private investment,
further reducing potential infrastructure projects.”
Studies by Big Project ME have revealed that
the Kuwaiti government framework remains
Al-Sabah returned to the government in
late-2013 as the new deputy prime minister and
finance minister of the country, with his staunch
beliefs intact.
“These imbalances are partially or wholly
linked to the exchanged relationship with the size
and nature of the role played by the government in
economic activity,” said Al-Sabah, as per state-
owned news agency KUNA, “which has resulted
in the oversized growth of its administrative
sector and the complication of procedures - thus
hindering sustainable growth.”
Copious efforts have been invested in
addressing the housing shortage in the country.
“We have enough finances to solve this problem,”
said parliament speaker Marzouq al-Ghanim at a
National Assembly session as per a Reuters report
from October 2013. While al-Ghanim labelled the
issue the ‘top priority’ of that session, Wouterson
is of the view that the shortage is only a part of the
bigger picture.
“The perceived housing shortage is limited to
government-funded housing with local Kuwaitis
having to wait for extended periods of time on the
housing list,” he says.
“This forms part of the national welfare
programme whereby men can apply for
government housing after marriage and receive
loans which are paid off over a lengthy period of
time. Based on the number of empty apartments
in Kuwait, there generally doesn’t appear to be a
shortage of housing,” says Wouterson.
Kuwait’s labour market structure in itself
could hold the key to this problem. The country’s
unemployment rate within nationals was a meagre
3% in 2012, as per the IMF report. High salaries,
lucrative perks and short working hours make
public sector jobs the more attractive option for
nationals – a preference that further defeats the
already-slacking private sector.
The 100,000 applicants reportedly wait-listed
for government housing will only further eat into
Kuwait’s finances, and an encouraging transition
from government-reliant practices to self-sufficient
ones - such as private ownership of business and
land, could save the Kuwaiti government’s efforts
to meet the housing shortage.
OUTPUT, TRADE AND EXPORTS
n 68% Oil
n 28% Other petroleum products
n 3% Other chemical
n 0.3% Metals
n 0.2% Manufactured goods
n 0.7% Others
n 26% Oil
n 2% Food
n 1% Crude materials
n 13% Chemical products
n 11% Manufactured goods
n 46% Machinery and transport equipment
n 1% Others
Kuwait: Top 50 exports of goods, 2011
Singapore: Top 50 exports of goods, 2011
“IMBALANCES ARE PARTIALLY OR WHOLLY LINKED TO THE…SIZE AND NATURE OF THE ROLE PLAYED BYTHE GOVERNMENT IN ECONOMIC ACTIVITY”
Source: IMF Data
32 JANUARY 2014MID
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MARKET REVIEW KUWAIT BIGPROJECTME.COM
A quick glance at Kuwait’s economic revenue
breakdown reveals the country’s dangerous
reliance on its public sector and overlooking of
its private industries. True to its form as a Gulf
state, most of Kuwait’s national revenues depend
heavily on the trade of oil – the impacts of this over-
reliance are many.
Oil accounted for 68% of Kuwait’s top 50
exports for the year 2011. The oil and gas sector, on
the whole, contributed 86% of the total exports and
85% of government revenues in the year, as per an
IMF report. In the past decade of high oil prices,
Kuwait’s construction sector has rapidly grown in
size and volume - growth of the manufacturing
and trade sectors was comparatively far slower.
‘Kuwait has a weak business environment
compared with other GCC countries’, continued
the Deloitte report, which further states the
country’s lengthy tendering process and
favouritism as a major dampener for the private
sector - from within and abroad.
“Faithful+Gould is currently undertaking a
project for the Ministry of Public Works (MPW)
which encompasses a review and improvement
programme on the way the MPW manages their
projects,” informs Wouterson. “The ultimate aim is
to upgrade the MPW’s processes and procedures
and install a Project Control System which utilises
the latest software available in the marketplace,
along with training in the usage of the new system
for a number of MPW staff.
“As with all change management programmes,
this exercise has proven to be both interesting
and difficult, in that this is not the same as a
construction project in which the client can view
progress as the project progresses – progress and
success can only be measured over a period of
time and against set criteria.
“Generally, we have found working in Kuwait
very strenuous, particularly given the restrictions
imposed by the government on obtaining visas
and/or residency for foreigners.
“Without a civil ID, one can’t open a bank
account, which in turn makes it difficult to manage
personal finances properly. This along with
other issues, such as not being able to get drivers
licences for foreigners makes life in-country that
little more unpleasant,” Wouterson says.
Faithful+Gould is not the only international
firm ruing the lack of opportunity in an otherwise
promising market. At least two sources from
internationally-renowned manufacturing
corporations have told Big Project ME about
their missed chances in the Kuwaiti construction
sector due to tedious price wars and extremely
bureaucratic practices.
The Kuwaiti construction sector, however,
is more than just active. Both petroleum-
development projects undertaken by the country
currently appear to be on track. Intelligence
agency MEED has reported almost $116 billion
will be invested in the country’s projects, currently
or in the future. Leading local construction
companies – such as Al Ghanim and Mushrif
Trading & Contracting Co – were awarded large
mega-projects by the government, focusing on
power generation and infrastructure creation
(road-building).
It’s clear that Kuwait will grow. The country’s
large pool of surplus budgets and oil reserves
provide a cushion for its private sector to
experiment, grow and compete with its fellow
GCC-members and in the international arena. n
“GENERALLY, WE HAVE FOUND WORKING IN KUWAIT VERY STRENUOUS, PARTICULARLY GIVEN THE RESTRICTIONS IMPOSED BY THE GOVERNMENT ON OBTAINING VISAS AND/OR RESIDENCY FOR FOREIGNERS”
RESTRICTED MARKETForeign contractors find Kuwait’s government restrictions difficult to deal with.
INFRASTRUCTURE CREATIONLarge scale contracts have been awarded to local contractors as Kuwait steps up its infrastructure development.
www.alec.ae
AREAS OF OPERATION:UAE | OMAN | QATAR | MONTENEGRO
AIRPORTS | THEMED PROJECTS | HOTELS | RETAIL | COMMERCIAL | RESIDENTIAL | HOSPITALS
CW advert.indd 1 11/25/13 5:15 PM
34 JANUARY 2014MID
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SPECIAL FEATURE SMART GLASS BIGPROJECTME.COM
2013 was a year of ‘more’ – more exhibitors
at The Big 5, more visitors at Cityscape
Global, more mega-projects undertaken
and one more feather in UAE’s cap – the
Expo 2020 winning bid.
More is also the theme of the glass industry in
UAE. Loic Pageot, area manager for Saint-Gob-
ain Glass Exprover – Middle East, says, “in terms
of basic glass, production in UAE and Saudi
Arabia exceed the demand for the materials.
“There is an estimated gap of almost 100 kilo-
tons per year between the supply and demand
for glass in the GCC and Levant countries.
Most overproduction in this region alone
is due to the optimism of pre-2008; the invest-
ments made at the time perhaps kept the market
in balance back then. Capacities have been
growing due to economy of scale and increased
productivity too,” he adds.
One would expect, then, that the glass indus-
try would be a fairly happy. Given the number of
developments expected across residential, com-
mercial and infrastructural sectors in UAE alone,
the glass sector in the UAE and MENA region
will be a busy one in the upcoming years.
As technology advances pave their way into construction segments, Big Project ME looks at how the glass industry stands to
impact from the Expo 2020 win and the scope for smart glass in UAE. Neha Bhatia reports
VISION 20/20
“2013 has been better than 2012, but not as
good as was expected,” says Ammar Alul, general
manager of Schueco Middle East. “Some compa-
nies continue to struggle but some haven’t even
peaked yet.”
“The Middle East market is picking up
though, and landmark events such as the Expo
2020 in UAE, FIFA World Cup 2022 in Qatar and
infrastructural investment in Saudi Arabia are
sending out a feel-good message.”
“It’s hard to predict what will follow after the
Expo and World Cup, but the immediate fore-
seeable midterm future - the next five-to-six year
period – looks very bright.”
Kiomars Dabbagh, managing director of
SCHOTT Middle East agrees with Alul’s estima-
tion of the regional market in the run-up to
the events. “There’s two sides to the situation
– demand and supply. I certainly anticipate an
increase of costs due to material demand and
capacity requirements.
“Specifically though, I don’t see a difference
in SCHOTT’s local costs due to the surge,
since we aren’t actively involved with local
manufacturing.
“Our year-on-year increase in costs will
mostly be a general reflector of global patterns.”
Maintaining that the UAE market will continue
its current growth patterns, Alul insists that the
major challenges in doing business in the country
persist even today.
“Delays, delays, delays and more delays – the
biggest risk remains the delays in projects. These
could be delays in payment or general project
push-backs itself. The companies involved in the
development may be financially strong, but hold-
ups like these usually destroy our forecasts and
make budgeting very challenging.”
“Other risks involved are those usually pre-
sent in any market, such as price wars, specifi-
cation-changes, project cancellations and so on,
but project and payment setbacks are a tad more
recurrent in this region,” he adds.
Pageot is, however, concerned about the cost
of production for the glass sector in the UAE.
“Glass production requires a lot of energy,
be it from electricity or gas. Costs for the same
haven’t reduced in the last year or so, and it is
possible they will be or are already increasing.
“The raw materials required to produce glass
35JANUARY 2014 MID
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SPECIAL FEATURE SMART GLASS
too are expensive. We therefore try to focus on
increasing the productivity and recyclability of
the materials so there is minimal wastage, bear-
ing in mind the overall value chain of the project
as well.
“Generally, though, competition often pro-
hibits pricing from reaching the required levels.
Since we also have to remember the aspect of
sustainability, it becomes essential to reduce
consumptions of energy and money while
maintaining and bettering the manufacturing of
high-value products,” Pageot explains.
As the demand for sustainability increases
across the region – Dubai’s new Green Building
Code will be implemented in January 2014 – the
glass industry is busy working on new methods
that will allow them to accommodate for the
green quotient in their products.
“Having been involved in the construction
industry for two decades now, I can say the the
word ‘sustainable’ has been around for as long,
and essentially is referred to the so-called ‘green’
side of things alone, and not so much to the af-
fordable side.
“Since it pertains to the environmental aspect
of things, every manufacturer, regardless of their
fields, certainly strives for some components of
environmental friendliness in their products. This
is not always a cost-conscious approach, but on
the contrary, it leads to increase in costs.”
“Nevertheless, architects, designers, speci-
fiers and sometimes, even environmentally-con-
scious owners – if not regulatory mechanisms as
well – require sustainable components be used
in production processes within the construction
industry,” he says.
Alul agrees with Dabbagh’s view on sustain-
ability in the region. “Sustainability is a huge
thing in the market today, and is sometimes
abused, sometimes misunderstood.
“A huge percentage of global energy waste
comes from buildings or pollution through inef-
ficient insulation, so where we can play a role
as an industry and as regulators of this industry
lies there.
“It is essential to use insulated windows,
doors and facades instead of the less-expensive
NI (not-insulated) alternatives. They are cheaper
since they are thinner and heat up more, which
adds to costs and energy wastage. This eventu-
ally leads to more environmental damage, which
contradicts one major aspect of sustainability,”
explains Alul.
“The idea of sustainability is to add value
to the glass itself,” says Pageot, “in a way that
it consumes limited energy – individually and
after application too. Glass that does not heat up
“IT’S HARD TO PREDICT WHAT WILL FOLLOW AFTER THE EXPO AND WORLD CUP, BUT THE IMMEDIATE FORESEEABLE MIDTERM FUTURE – THE NEXT FIVE-TO-SIX YEAR PERIOD – LOOKS VERY BRIGHT”
36 JANUARY 2014MID
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SPECIAL FEATURE SMART GLASS BIGPROJECTME.COM
SUSTAINABLE VALUEAmmar Alul, Kiomars Dabbagah and Loic Pageot say that they’re confident that the market can offer sustainable value to developments.
“GLASS’ SENSITIVITY TO TOUCH AND HEAT ALLOWS IT TO BE INCORPORATED WITH TECHNOLOGIES AVAILABLE TODAY”
“Glass is a very non-organic, solid material;
one of the strongest involved in construction
business – even stronger than concrete. Its sensi-
tivity to touch and heat allows it to be incorpo-
rated with technologies available today.
“It is certainly possible to allow glass to facili-
tate in information-creation. I’d say it isn’t too
far into the future either,” says Dabbagh.
Alul echoes the confidence in IT for glass.
“Information technology is a kind of infrastruc-
ture I’m afraid many companies don’t – unfortu-
nately – take full advantage of.
“By the definition of ‘intelligent’ and ‘smart’, I
believe the industry already has these products,
such as windows that automatically detect
smoke, allow for fire-safety (such as opening up
in event of fire smoke to let air out),” says Alul.
“This feature comes handy in schools at the
kindergarten level so the children can’t run out
or get lost. It also saves expenses of security.
Many such practical applications, such as finger-
prints and biometrics can be incorporated in the
frame for windows and doors,” he explains.
Pageot excitedly lists down the vast array of
glass products that Saint-Gobain sends into the
regional market.
“Today, we can use the many sensitivities
of glass – such as to acoustics, touch, heat and
so on – to create soundproof, bullet-proof, UV-
resistant and sunlight-reducing glass,” Pageot
tells Big Project ME. “There are vast functionali-
ties of glass the industry can tap into. Today,
glass can be created to restrict electromagnetic
waves in security centres and hospitals. Acoustic
glass is another creation today – it can not only
control the sounds audible inside a room, but
also transmit audio. We have a kind of glass
which is resistant to bomb-blasts too!”
Alul conclusively echoes the supportive sen-
timent for smart glass. “There is nothing in the
world right now that doesn’t need IT – it is no
longer a luxury, but the ground we walk on.”
Clearly, the glass industry is morphing into
more than just a product manufacturing one.
Value-based services are constantly being
added to basic glass products, and there are no
limits on the glass industry’s innovativeness.
As Alul said, “who knows, we may even have
mind-reading glass in the future!” n
easily will automatically reduce air-conditioning
costs,” he points out.
All three, seasoned members of the glass in-
dustry, are confident about the market’s ability to
offer sustainable value to a given development.
“From the glass perspective there’s a lot you
can do, since it is one of the main interfaces
between the building and the environment.
There’s obviously issues such as solar heat and
up until recently, SCHOTT was involved in the
production of photovoltaic integrated facades
and opaque facades – that’s one way of control-
ling environmental issues,” says Dabbagh.
“The recycling content being used can also
be made non-damaging and non-poisonous.
Those are areas that can be addressed. As manu-
facturers, we look to control issues such as how
the glass itself can be used and reused, and its
application to add to sustainability,” he adds.
Ammar Alul is willing to give the regional
market time to come around to the concept of
reasonable sustainability.
“Sustainability includes other connotations
and implications as well, such as the recyclabil-
ity of a product. The industry here is upcoming
and not at a stage yet where competitive pricing
allows for 100% green production. We will have
to pay more right now as it is a long-term ap-
proach, which will require social responsibility
and ignoring the bottom-line.
“Because it (the cost of being sustainable)
adds up on the value chain with end-users pay-
ing more rent and the developer paying more
expenses, it requires every party to be socially re-
sponsible and pay more to save later,” he explains.
With the use of IT across construction sectors
being recognised as a value addition to develop-
ments, both Alul and Dabbagh are optimistic
about its scope in the glass market.
“Most technical advancements in the glass
industry are inherent to the actual product
itself – the manufacturing process involved, the
coatings that append the existing technologies
– to reduce reflectivity, repair thermal gains and
losses and so on,” says Dabbagh.
“There have been breakthroughs in process-
ing capabilities too, but besides these, I can’t say
I’m aware of any other technologies that have
added to the glass industry in the last few years.
Loic Pageot explains the phenomenon of oversupply and demand for glass in the region.
“Broadly speaking, there is definitely a case of overcapacity. In the GCC, the demand for basic glass stands at around 500,000 ktons/year - production is almost 900,000 ktons/year. The full demand, including the Levant countries (such as Syria and Egypt), still falls short of the total supply by 100,000 ktons/year. You have to bear in mind the time before 2008 in the region, the fast-pacedness of which could have probably maintained an equilibrium at the time. Companies also import from China due to the price gap in the materials. UAE also exports to parts of Asia, Australia and parts of South America. Over-capacities are exported but companies also import materials they either don’t have, or are specifically loyal to from their home-country.”
A CASE OF OVERCAPACITY
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BIGPROJECTME.COM
Big Project ME spoke to representatives of market leaders from the IT sector to learn how emerging technologies can help the construction industry in the region to create not only smart, but intelligent buildings in the future
38 JANUARY 2014MID
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SPECIAL FEATURE TECHNOLOGY
INTELLIGENCE: UNDERCONSTRUCTION
SCOPECiaran: “There is a huge amount of
demand for connectivity today - the trend
of BYOD (Bring Your Own Device) such as
smartphones, tablets and so on means users
are not content with limited connectivity
just in their homes or offices. People want
the same level of connectivity in a coffee-
shop, their home, offices and malls alike;
this requires high capacity cell and wireless
networks, and places a strain on wireless
networks that were designed purely for voice
transfers to now accommodate data - such
as Facebook posts and emails - as well. Users
are becoming hungry and unforgiving - if
a certain hotel does not offer quality Wi-
Fi services, chances are the builder will
suffer long-term losses of customers and
business. A simple statement by a consumer
saying ‘I want the same level of connectivity
everywhere’ has a massive impact on the way
networks are - and ought to be - laid out.”
“It starts at the very basic step of sourcing raw material, and continues all the way to the end product, which is essentially
the buildings we function in and the standard of life they provide us with. It allows a builder to differentiate himself in the market as a provider of smart buildings as against his competitors who might not - as can, say for instance, an owner of parking spaces or crowd management, who can market his solutions and control of flow as completely unique vis-a-vis his competitors.”RABIH DABOUSSI, MANAGING DIRECTOR AND GENERAL MANAGER OF CISCO SYSTEMS INTERNATIONAL - UAE
“It is about solving the complicated problem of creating future-oriented physical infrastructure. The physical layer is
the most challenging aspect of any type or size of network as it has to not only support the programs on that platform in the present, but also support applications that will be implemented in the future - and may not have even been invented yet! As IT companies, we have to anticipate at least the next three generations of the active equipment and curate the physical connectivity layer so its infrastructure can support the company for the next 20-odd years, if desired.”CIARAN FORDE, EVP, ENTERPRISE SALES, COMMSCOPE - MIDDLE EAST AFRICA
39JANUARY 2014
SPECIAL FEATURE TECHNOLOGY
Rabih: “I believe the starting point should be
walking backwards from the desired overall
experience of that given building, mall or hotel
under construction. If they need the services
available at the structure to be exclusive, it
requires IT companies to be involved earlier
than the planning and design stage. The network
companies have in their work settings is a key
factor that affects large-scale projects. Along the
way, this can aid their decisions regarding the
products they source, where they source them
from and the overall of the vision of the type
of buildings they want to build. For instance,
one could construct a hotel where every room
is equipped with a mirror that speaks to the
occupant - ‘here’s your email, here are the pictures
of your friends, here’s the news from the city you
live in, here’s the weather in this city and I know
you have a meeting with XYZ at such time for
which you might want to leave 10 minutes early
because its raining or because there’s a traffic
OBSTACLESRabih: “Innovation will overcome the initial
response - which was flat due to the lack of
knowledge about what technology can do for
the construction industry. But as we see smart
cities being developed - like Sando in Korea - the
approach will hopefully change. Leaders from the
construction industry need to be more open to
the applications of technology and enhance not
just the products they offer, but their methods of
execution as well.”
Ciaran: “There is the practical issue of ‘who owns
the network in a building’ - is it just the service
provider, or is it also the owner of the building
who decides the level and quality of coverage that
service users experience? The builder’s interest in
footfall-revenues could lead him to demanding
better coverage from the service provider.
Hopefully, governments will understand the stress
this demand places on service providers alone and
might voluntarily involve developers in the process.”
jam on this highway, or when you take a taxi
tell him to avoid this highway and go that path!’
Building smart governments and smart cities
requires a joint effort from all industries, of which
construction is a huge part.”
Ciaran: “We have to be involved before the
design stage. A lot of our businesses are tied to
construction cycle where people don’t always plan
what they need to get it built, and infrastructure is
not always the first thing on everybody’s mind. So
it becomes our job to remind them that design is
more than just choosing the right technology or
bandwidth - you could easily over-engineer and
damage the costs of the project, or under-engineer
and sacrifice quality leading to a situation where
users complain about poor connectivity issues. We
aim for design optimisation through our services
to help customers and consultants design correctly
by choosing the right techiques and charting out
an infrastructure plan.”
LEVEL OF INVOLVEMENT
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40 JANUARY 2014MID
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SPECIAL FEATURE TECHNOLOGY BIGPROJECTME.COM
BREAKING BARRIERSExperts have called on the construction industry to be the first to adopt smart building technology.
TIE IN WITH PMRabih: “At the conceptualisation and initial
discussion phases, technology should
be brought up as an integral, important
ingredient. Technologists should be enabled
communication with the builders on an
ongoing basis. Mechanical engineers,
electricians, architects, constructors, site
managers need to be relieved of their xylos and
allowed interaction, which obviously needs the
introduction of technology. It isn’t just about
the end product, but also enhancing the flow
of processes. Enforce technology to allow the
electrical engineer to speak to the site manager
and socially interact with them, over either
a mobile device or internal social website
that allows them to share doubts and clarify
concerns. That is what the younger generation
of workforce does - they don’t work within
themselves, they work together as teams on
projects. The future is about this - companies
that adopt technologies to implement these
models will be very successful and companies
that don’t will have to change their ways or face
challenges.” n
COMMON CLOUDRabih: “The cultural shift has to be driven from
the top. From a technical perspective, there
are no barriers and we’ve already seen what
we can do with technology. The ability to unify
the platform and build a common mechanism
to collaborate construction communication is
all there. It’s like doing YouTube or Facebook
for your company internally. To allow them to
share pictures, share information - but it’s all
about work here. As IoE becomes more of a
reality today, our chances and ability to harness
and leverage more value from it increases. We
calculated the commercial and business value
opportunity of IoE between now and 2022 to
be $14.4 trillion - that’s equivalent to an annual
GDP of USA!”
COSTSRabih: “Networks aren’t set up overnight.
Prioritisation is an important part of this
planning process. These days, buildings have to
incorporate smart doors, smart lighting, smart
camera and monitoring devices; in the future,
we could even have smart faucets - they might
alert you if there’s a leak! It’s an evolution, and
there’s cost to everything. However, people
invest in and pay for technology to get value, and
there’s a lot of value in technology today and
many ways of realising it too. Technology has
become a lot cheaper in recent years; TV sets,
mobile phones and laptops have gotten cheaper
over the years and the same could apply to
network infrastructure and access point systems
in the future.”
EXISTING APPLICATIONRabih: “Our office building here (Dubai Media
City) for starters! It is probably not the most
advanced anymore because its construction
was completed around four years ago. We
wanted it to be a bit ‘smarter’ than most others,
which is why we implemented technology
like smart lighting - the lights start turning on
as I walk into my office, for instance. Another
feature we’ve added is our IP phones, which
run on a technique called Power Over Ethernet
(POE) as against electricity, which means they
go to sleep - like any computer/tablet - at a
given time, and ‘wake up’ the next morning
when the working day resumes. my office lights
come on, but one thing most people don’t
know is that even my IP phone that sits on
the desk goes to sleep when I go to sleep. The
construction industry has to break the barriers
like this. If they don’t, somebody else will come
in and make them do it.”
“A SIMPLE STATEMENT BY A CONSUMER SAYING ‘I WANT THE SAME LEVEL OF CONNECTIVITY EVERYWHERE’ HAS A MASSIVE IMPACT ON THE WAY NETWORKS ARE LAID OUT.”
42 JANUARY 2014MID
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COMMENT DLA PIPER BIGPROJECTME.COM
Over the past five years, Kuwait’s econo-
my has experienced one of the fastest
growth rates in the GCC. Kuwait has
the second lowest unemployment rate
in the MENA region and in 2008, the country
ranked the highest in the Middle East on the
UN’s Human Development Index.
Since 2008 the government has also sought
to invest in vital legislative reform and develop-
ment projects to transform the role of the gov-
ernment from an operator to a regulator. One
of the most significant reform initiatives is the
Kuwait Vision 2035, which aims to transform
Kuwait into a vital regional financial and trade
hub by 2035.
The Vision comprises six development
plans, the first of which, the 2010-2014 devel-
opment plan, was approved by the National
Kuwait PPP - overview and recent developmentsGeorge Oti, Legal Director, and Trevor Butcher, Partner, DLA Piper Middle East, analyse the impact of Kuwait’s proposed plans to encourage Private Public Partnerships
DLA PIPER
PPP DEVELOPMENT Kuwait s is pushing forward with plans to encourage Private Public Partnerships.
Assembly in 2010. This vision aims at stimulat-
ing GDP growth and encouraging the role of
the private sector in the economy.
Under this plan projects are to be imple-
mented by the private sector, either through
traditional tendering processes in Kuwait (Cen-
tral Tendering Committee) or Public Private
Partnerships (PPPs). In addition, the national
vision will increase investment to raise oil
and natural gas production, and diversify the
economy away from oil through the promotion
of key non-oil related sectors.
In the initial stages there was a strong
emphasis on the development of the PPP
programme in the power, transportation,
health and telecommunications sectors. Given
Kuwait's financial strength and reserve levels,
budget and balance sheet considerations have
43JANUARY 2014 MID
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COMMENT DLA PIPER
played no part in the pursuit of the PPP model.
But rather it is recognised in some govern-
ment circles that the PPP model could help
ensure a more transparent, efficient and effec-
tive delivery of important national infrastruc-
ture. Whilst important preparatory steps have
been taken, few PPP projects have progressed
beyond the preparatory stage and the future of
the PPP market in Kuwait currently hangs in
the balance.
The Government of Kuwait has established
a clear regulatory framework for implementing
PPP projects. The laws and regulations seek
to establish high levels of transparency and
certainty throughout the process.
The main PPP law is Law 7 of 2008, on the
Regulation of the Operation of Build, Operate
and Transfer and similar Systems (BOT Law),
which is a general law that covers all PPPs un-
dertaken on state owned land. However, there
have been a number of other PPP laws passed
that cover power production, public warehous-
ing, labour cities and other projects, as well as
Law No. 37 of 2010 regarding the Regulation of
Privatization Programs and Operations.
A common trait in these laws is the require-
ment for the incorporation of a public share-
holding company (KSCP) in certain specified
circumstances to carry out the various Private
Public Partnership projects.
Kuwait has pressing infrastructure needs
that span from power to housing and, critically,
the financial firepower to ensure such projects
are completed, thanks to sustained high global
oil prices. It is therefore perhaps not surprising
that Kuwait has some 324 infrastructure pro-
jects included in its 2012-13 development plan.
However, significant doubt remains as to
how many of these projects will progress past
the tender stage to implementation.
At the heart of the problem is the conflict
between the Council of Ministers and the
National Assembly that has stalled a number
of crucial infrastructure projects. A prime
example of this dissonance is the country’s first
independent water and power project (IWPP)
at Al-Zour North.
In June 2012, the National Assembly voted
to scrap the process for the development of
the Al-Zour North IWPP, purportedly due to
concerns regarding the tender procedure, with
the then Speaker of the National Assembly
spearheading the opposition to the project.
The Speaker raised objections to the Al
Zour IWPP on the basis that the Government
(through the PTB and the Council of Ministers)
George Oti is legal director, and Trevor
Butcher, Partner at DLA Piper Middle East.
Both have extensive experience operating in
the GCC region and its businesses.
HOUSING SHORTAGEKuwait, one of the world's richest countries per
capita and a major oil producer in the region
is facing a shortage of government-funded
housing, with reports suggesting the locals may
have to wait for almost two decades on the
housing list.
"The housing issue is the top priority in this
session," parliament speaker Marzouq al-
Ghanim said.
"We have enough finances to solve this
problem," he added, and pointed out that the
country needed a watertight plan and timetable
to correct the shortage.
“BUT RATHER IT IS RECOGNISED IN SOME GOVERNMENT CIRCLES THAT THE PPP MODEL COULD HELP ENSURE A MORE TRANSPARENT, EFFICIENT AND EFFECTIVE DELIVERY OF IMPORTANT NATIONAL INFRASTRUCTURE”
had failed to follow proper legal procedures in
offering the tender to establish the sharehold-
ing company to build the power plant. The
Government vigorously defended the process
and, following the dissolution of the National
Assembly shortly thereafter, has proceeded
with the project. Although financial close has
not yet occurred, it is said to be imminent.
While the current National Assembly and
the Council of Ministers appear to subscribe to
the philosophy of increasing private sector par-
ticipation in the Kuwaiti economy, nonetheless
in January of this year four large privatization
projects were put on hold after the Ministry
of Communications ordered a review of the
projects while it considers bringing them back
under government ownership.
The schemes include the PPPs to develop
the Kuwait rail and metro projects, and the
part-privatization the Public Post Office
and communications network. The PTB has
stopped work on the four schemes while the
Communications Ministry reviews whether
they should be procured as PPPs or developed
through direct government procurement.
Other projects have been cancelled but some
schemes in the waste and housing sectors ap-
pear to be progressing.
For example, in March, the Public Authority
for Housing Welfare (PAHW) announced that it
is looking to appoint advisers on the develop-
ment of two public-private partnership projects
to develop thousands of new houses at an
expected cost of several billion dollars.
However, there seems to be a lack of clarity
as to why the process is not being done under
the auspices of the PTB or if the PAHW process
will be run according to the PPP guidebook that
was written by the PTB to establish interna-
tional best practice for the procurement of new
projects developed in co-operation with the
private sector.
The Kuwaiti PPP market is perhaps the
most promising in the MENA region, but needs
greater clarity as to whether there is a mean-
ingful place for PPP schemes in the Kuwaiti
economic model. The overriding sense is that
the key players in the market would prefer to
see a more rigorous selection process with less
deals coming to market, provided the deals are
ultimately delivered. n
44 JANUARY 2014MID
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TENDERS BIGPROJECTME.COM
including a five-star hotel, restaurants, villas and apartments; and a 27-storey building featuring offices, retail and other commercial uses
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 $600,000,000
BUDGET $275,000,000
REGION Qatar
CLIENT Real Estate Services Group (Qatar)
DESCRIPTION Construction of two mixed-use towers comprising a 35-storey building,
PROJECT NAME: DHUBA 1 IPP
BUDGET $105,000,000
REGION Kuwait
CLIENT Ministry of Electricity & Water (Kuwait)
DESCRIPTION Engineering, Procurement and Construction (EPC) contract for supply and installation of 172 kilometres of 300kV power transmission lines
STATUS Current Project
PROJECT NAME: FUJAIRAH REFINERY PROJECT
BUDGET $3,500,000,000
REGION Northern Emirates
CLIENT International Petroleum Investment Company - IPIC (Abu Dhabi)
DESCRIPTION Engineering, Procurement and Construction (EPC) contract to build a grass-roots refinery in Fujairah with capacity of 200,000 barrels a day (b/d)
STATUS New Tender
PROJECT NAME: POWER TRANSMISSION LINES INSTALLATION
BUDGET $190,000,000
REGION Dubai
CLIENT Dubai Electricity & Water Authority (DEWA)
DESCRIPTION Engineering, procurement and construction (EPC) contract to build a solar power plant with capacity of 100 MW as part of Shaikh Mohammed Bin Rashid Al Maktoum Solar Park - Phase 2
STATUS New Tender
REGION Saudi Arabia
CLIENT Saudi Electricity Company - Central Region (Saudi Arabia)
DESCRIPTION Construction of an Independent Power Project (IPP) with capacity of 600 MW
STATUS New Tender
PROJECT NAME: MIXED-USE TOWERS PROJECT - LUSAIL DISTRICT
PROJECT NAME: SOLAR POWER PLANT PROJECT - PHASE 2
45JANUARY 2014 MID
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TENDERS
www.ccsgulf.com | Tel: +971 4 346 6456 | [email protected]
INTEGRATED ESTIMATING, PROJECT CONTROL
AND ERP SOLUTION FOR CONTRACTORS
BAHRAINJW MARRIOTT HOTEL CONSTRUCTION PROJECT - BAHRAIN BAY WATERFRONT DEVELOPMENT
PROJECT NUMBER MPP2597-BTERRITORY BahrainCLIENT Remza Investment Company CITY Manama COUNTRY BahrainPHONE (+973) 1782 2122EMAIL [email protected] Construction of 50-storey JW Marriott Hotel on top of a five-stor podium, with three floors of underground parkingSTATUS New Tender DESIGN CONSULTANT Yousif Dawood Al Sayegh Consultants (Bahrain)INTERIOR DESIGN CONSULTANT Creative Resource Associates (CRA) - DubaiTENDER CATEGORIES Hotels, Prestige Buildings, Tender Products, High-rise Towers, Hotel Construction
IRAQPIPELINES CONSTRUCTION PROJECT - MISSAN OIL FIELD
PROJECT NUMBER MPP2849-IQTERRITORY IraqCLIENT China National Offshore Oil Company (CNOOC)CITY Beijing 100010 COUNTRY ChinaPHONE (+86-10) 8452 1010FAX (+86-10) 6460 2600EMAIL [email protected] www.cnooc.com.cnDESCRIPTION Engineering, Procurement and Construction (EPC) contract to build new oil and gas pipelines at an oil fieldSTATUS New Tender TENDER CATEGORIES Gas Processing & Distribution, Oilfields & RefineriesTENDER PRODUCTS Crude Transportation, Storage & Distribution, Gas Transportation, Pipes, Tubes & Fittings (Metal)
QATAR
KATARA TOWERS PROJECT - LUSAIL MARINA DISTRICT
PROJECT NUMBER WPR059-QTERRITORY QatarCLIENT Katara Hospitality (Qatar)CITY Doha COUNTRY 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
AL WAKRA SECURITY COMPLEX CONSTRUCTION PROJECT
PROJECT NUMBER 74/2010- 2011-QTERRITORY QatarCLIENT Ministry of Interior (Qatar)CITY Doha COUNTRY QatarPHONE (+974) 433 0000/ 484 9444FAX (+974) 444 9228EMAIL [email protected]
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]
46 JANUARY 2014MID
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TENDERS BIGPROJECTME.COM
www.ccsgulf.com | Tel: +971 4 346 6456 | [email protected]
INTEGRATED ESTIMATING, PROJECT CONTROL
AND ERP SOLUTION FOR CONTRACTORS
DESCRIPTION Construction of Al Wakra Security Complex for a ministryPERIOD 2014 STATUS Current Project MAIN CONTRACTOR Al Madar Contracting & Trading Co. (Qatar)ALUMINIUM PRODUCTS SUPPLIER Al-Sakher Aluminium, Glass & Kitchen WLL (Qatar)TENDER CATEGORIES Construction & ContractingTENDER PRODUCTS Civil Works, Construction & Addition Works
MIXED-USE TOWER PROJECT - DOHA CONVENTION CENTRE DEVELOPMENT
PROJECT NUMBER BP 04-QTERRITORY QatarCLIENT Lusail Real Estate Development Company (Qatar)CITY Doha COUNTRY QatarPHONE (+974) 4497 7770FAX (+974) 4497 7775EMAIL [email protected] www.lusail.comDESCRIPTION Construction of a 550-metre-high, 112-storey mixed-use tower comprising a hotel, offices and apartmentsPOST DATE November 4, 2012 PERIOD 2015 STATUS Current Project MAIN CONTRACTOR Six Construct Ltd. (Qatar)MAIN CONTRACTOR(2) Midmac Contracting Company (Qatar)TENDER CATEGORIES Hotels, Prestige BuildingsTENDER PRODUCTS High-rise Towers, Hotel Construction
UAE AL JALILA OIL FIELD DEVELOPMENT PROJECT - OFFSHORE PLATFORM B
PROJECT NUMBER MPP2857-UTERRITORY DubaiCLIENT Dubai Petroleum Establishment (DPE)CITY Dubai COUNTRY United Arab EmiratesPHONE (+971-4) 343 2222FAX (+971-4) 301 2200EMAIL [email protected] www.dubaipetroleum.aeDESCRIPTION Engineering, Procurement and Construction (EPC) contract for the development of an offshore platform in an oil field along with offshore pipelines and associated facilitiesSTATUS New Tender TENDER CATEGORIES Oilfields TENDER PRODUCTS Oilfields Exploration & Development
DUBAI WORLD TRADE CENTRE COMPLEX REDEVELOPMENT PROJECT - PHASE 1
PROJECT NUMBER MPP1411-UTERRITORY DubaiCLIENT Dubai World Trade Centre L.L.CCITY Dubai COUNTRY United Arab EmiratesPHONE (+971-4) 332 1000FAX (+971-4) 331 8299 / 331 2713EMAIL [email protected] www.dwtc.comDESCRIPTION Redevelopment of the existing Dubai World Trade Centre (DWTC) complex involving construction of a convention centre, office and residential towers, hotels and hotel apartments, and shopping facilities - Phase 1STATUS Current Project MAIN CONSULTANT Atkins & Partners Overseas (Dubai)MAIN ARCHITECT Hopkins Architects (Dubai)DESIGN CONSULTANT WSP Middle East (Dubai)
SPECIALIST CONSULTANT WSP Environment & Energy Middle East (Dubai)PROJECT MANAGER Mace International Ltd. (Dubai)MASTER PLAN CONSULTANT HOK International (Dubai)FOUNDATIONS, ENABLING & PILING CONTRACTOR Middle East Foundations Group L.L.C (Dubai)TENDER CATEGORIES Hotels, Leisure & Entertainment, Prestige Buildings, Tender Products, High-rise Towers, Hotel Construction, Public Buildings, Retail Developments
THE ADDRESS RESIDENCE FOUNTAIN VIEWS TOWER PROJECT - DOWNTOWN DUBAI
PROJECT NUMBER MPP2808-UTERRITORY DubaiCLIENT Emaar Properties PJSC (Dubai)CITY Dubai COUNTRY United Arab EmiratesPHONE (+971-4) 367 3333FAX (+971-4) 367 3000EMAIL [email protected] www.emaar.comDESCRIPTION Construction of 60-storey, 220-metre-tall luxury residential tower comprising (280) apartmentsSTATUS Current Project FOUNDATIONS, ENABLING & PILING CONTRACTOR Brookfield Multiplex Constructions Middle East L.L.C (Dubai)TENDER CATEGORIES Prestige Buildings, Tender Products, High-rise Towers, Residential Buildings
47JANUARY 2014 MID
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DIARY INTERMAT MIDDLE EAST
ORGANISERS WILL BE HOPING IT’S A CASE OF THIRD TIME LUCKY WHEN INTERMAT RETURNS ON 14-16 JANUARY AT ADNEC
NOW INTO ITS third edition, Intermat Middle East is an event that hasn’t yet caught fire despite the extreme heat experienced in 2012. The move from October to January should at least help with the weather which at times made visiting the outside exhibition area unbearable last time around.
Intermat in Europe has so firmly established itself as the third largest global event since its inauguration in 1988, that it now confidently bears the burden of rotating with Bauma and Conexpo in the US.
Before Bauma was flying dealers and equipment customers from the Middle East, it was Intermat that was pulling visitors from Jordan to Jeddah. Like its older German and US cousins, it started as a local show but found its place as an international meeting place.
Those that visited the show in 2012 complained that the show wasn’t big enough; that it lacked the true Intermat experience; and that Abu Dhabi was too remote for a largely
REVIVAL OF FORTUNESIntermat organisers will be hoping interest in the 2014
edition of the show will rise on the back of Expo 2020.
Dubai-based construction community. Ultimately Intermat Middle East succeeded in proving what many people have argued for half a decade: that largely the UAE is too small a market to sustain a dedicated machinery show.
Perhaps, the biggest shame of the previous show was that it was a lot better than the footfall suggested. It was a pretty solid representation of the machinery industry. It also boasted a decent array of new equipment and offered one of the few opportunities to compare region-ready machines side-by-side.
It was also backed up by a substantial if thinly attended conference that made the most of local governmental support to put together a programme that would rival many other more established events. Plus it was free.
However, this will be the first major construction equipment show after the announcement of Expo 2020. Come 14 January you could see a burst of late arrivals in terms of exhibitors and contractors. n
HAPPENING THIS MONTH...INTERMAT MIDDLE EAST
MIDDLE EAST ELECTRICITY 2014DUBAI, UAE11TH – 13TH FEBRUARY, 2014Middle East Electricity is the largest meeting for energy industry professionals from over 100 countries. The 2013 edition was the most successful in the show’s 38-year history.
CONSTRUCTION MACHINERY SHOW 2014DAMMAN, SAUDI ARABIA16TH – 20TH FEBRUARY, 2014The region’s biggest dedicated construction machinery show, returns, this time in Damman, Saudi Arabia, following its successful run in Jeddah last year.
AIRPORT SHOWDUBAI, UAE11TH – 13TH MAY, 2014As one of the world’s largest airport-focused exhibitions, Airport Show provides an ideal B2B platform for companies to present airport and aviation-related products and services.
LAST MONTH DUBAI hosted its 10th
International Film Festival, which showcased a
variety of films from all across the world. Being
an avid movie buff, I made sure to catch as
many movies as my schedule could permit.
However, one movie I desperately wanted
to see, but was unfortunately able to catch was
the locally filmed documentary, ‘Champ of
the Camp’. Set in the UAE, the film follows the
contestants of an annual singing competition
and charts their journey to the finals.
What sets this film apart is that the aspiring
singers are all construction workers from more
than 70 different labour camps spread across
the Emirates. Ranging from grizzled veterans
to fresh faced youngsters, the contestants allow
viewers a glimpse into the different and lonely
struggles they face on a daily basis, which is in
stark contrast to the excitement generated by
the contest.
Astonishingly, Champ of the Camp is the first
documentary that has been allowed access to
the labour camps, which is perhaps no surprise,
given the positivity of its central theme.
While there are certainly major issues
that we should address when it comes to the
livelihood of these workers, contests such as the
ones depicted in Champ of the Camp, (which
is in its seventh year, incidentally) show us that
there is a lot being done under the radar to help
make their mundane lives just a little bit easier
and pleasurable.
I think a quote from Bollywood actor, Javed
Jaffery, who was interviewed by Gulf News,
sums up the impact of this film:
“What I liked about this film is that
Mahmoud hasn’t taken away the dignity of the
labourer. You don’t pity him. Instead, you get to
respect the pain, the dignity with which they get
on with their lives and the determination they
have to give their families back home a better
life. It’s a film about hope.”
What this documentary should be is a
stepping stone to allowing greater independent
access and insight into the conditions these
men live in. With Dubai winning the Expo
2020, the international spotlight will be on us
to prove that we provide a safe and welcoming
environment to all workers, no matter what sort
of work they do.
We’ve already seen how Qatar has attracted
massive negative attention thanks to its
antiquated and secretive labour laws. Perhaps
the time has come for Dubai to show that it
has nothing to hide and that all those who
come to its shores are afforded the greatest
opportunities to shine, much like the stars of
Champ of the Camp. n
48 JANUARY 2014MID
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CONSTRUCTIVE CRITICISM BIGPROJECTME.COM
GAVIN DAVIDS
Gavin Davids says that the locally filmed documentary ‘Champ of the Camp’ should be the first stepping stone towards allowing greater access and insight into the conditions of labour camps in the UAE
Champions of Hope
“WHAT I LIKED ABOUT THIS FILM IS THAT MAHMOUD HASN’T TAKEN AWAY THE DIGNITY OF THE LABOURER. YOU DON’T PITY HIM. INSTEAD, YOU GET TO RESPECT THE PAIN, THE DIGNITY WITH WHICH THEY GET ON WITH THEIR LIVES AND THE DETERMINATION THEY HAVE TO GIVE THEIR FAMILIES BACK HOME A BETTER LIFE. IT’S A FILM ABOUT HOPE.”
![GOD’S SO BIG God’s so big [God’s so big] I’m so small [ I’m so small] Why does he love me, love me at all?](https://img.pdfslide.us/doc/110x75/551c3ace550346ea388b4935/gods-so-big-gods-so-big-gods-so-big-im-so-small-im-so-small-why-does-he-love-me-love-me-at-all.jpg)
