Construction Business News ME - March 2016

THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS

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TOUGH TIMES LIE AHEAD FOR THE SAUDI CONSTRUCTION SECTOR BUT THE LOw OIL PRICEENVIRONMENT COULD PROVIDE THE CATALyST FOR MORE PRIVATE INVESTMENT

Developers discuss the challenges of building the world’s largest naphtha

cracker plant in Egypt

Analysis of how Kuwait could be the new capital of public private partnership

within Gulf countries

Inferno at The Address Downtown on New year’s Eve has re-ignited the debate over fire safety in Dubai

THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS

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EDITOR’S NOTENEwSSUPPLIER NEwSCOVER STORyTough Times lie ahead for The saudi consTrucTion secTor buT The low oil price environmenT could provide The caTalysT for more privaTe invesTmenT

IN PERSONokbah abdulkarim, execuTive direcTor aT arTar real esTaTe developmenT Talks abouT running The company in The uae and how experienced developers could face unsTable markeTs wiTh qualiTy projecTs

ANALySISabdullah alharoun, associaTe aT inTernaTional counsel bureau in kuwaiT, analyses how kuwaiT could be The new capiTal of public privaTe parTnership in The gcc inferno aT The address downTown hoTel on new year’s eve has re-igniTed The debaTe over fire safeTy in dubai

COMMENT simon scoTT analyses how airporT Terminal design in The uae is on course for commercial success

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contents

construction business news me march 20164

S U B S C R I B E

C o n t R I B U t o R S

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Managing Director Walid Zok

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-------Joanne Bladd

fire safeTy in hospiTaliTy is under scruTiny in The region following some recenT high profile incidenTs, buT The righT equipmenT and procedures can prevenT disasTer

PROJECT REVIEwconsTrucTion business news me looks inTo progress on meydan sobha’s 45 million sq.fT of freehold land—disTricT one.

developers behind The world’s upcoming largesT naphTha cracker planT, Tahrir peTrochemical projecT, give a consTrucTion updaTe

dr raed bkayraT, vice presidenT of business aT firsT solar middle easT, discusses The company’s piloT solar-powered irrigaTion projecT in saudi arabia

Q&A Trade beTween arab naTions and brazil has been relaTively sTable over recenT years. dr michel alaby, secreTary general and ceo of arab-brazilian chamber of commerce (abcc), discusses consTrucTion Trade relaTions beTween arabs and brazilians

EVENT PREVIEwnaThan waugh, evenT direcTor aT dmg evenTs, discusses how aTTending Tradeshows during a slowdown could be beneficial

SAVE THE DATESUPPLIER CORNERsTefano iannacone, managing direcTor of mapei, discusses why The company has made susTainabiliTy and leed cerTificaTion iTs Top prioriTy

EDITOR’S PICKaidan mercer, senior indusTry markeTer aT benTley sysTems, analyses The challenges of inTegraTing geospaTial Technology wiTh bim

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What’s next for saudi?Still shaken by the oil price dropping in 2014, the hot topic hasn’t gone cold with the prices predicted to drop further down. Saudi Arabia, front runner in oil production, has since been under the radar by the world’s most sceptical spectators – the media.

Apart from energy production, the country has a massive construction sector with some of the most largescale construction projects. The plunging oil prices have had a profound impact on the sector, with budget cuts mark-ing a significant change in the country’s fu-ture project landscape.

The Saudi-US Relations Information Ser-vice reported that the non-oil private sector as a whole has grown by 3.7% in 2015, with a robust 5.6% year-on-year increase within the construction division.

The fiscal budget for 2016 released on 28 December 2015 reveals that despite lower oil prices the Kingdom will be maintaining a high level of spending in 2016.

Though there have been massive budget cuts in several projects, the government has committed $54bn worth spending focussing on social infrastructure projects including education and healthcare (accounting for 35% of the total spending).

That being said there have been news reports about the budget cuts in the con-struction industry that have been affecting contractors and professionals in the market. News agency Reuters recently reported that there are some construction companies in Saudi Arabia struggling to pay their staff on time as a result of oil prices falling.

To combat the existing lack of conviction in the market, the local government has taken active measures to make sure the sector is bal-anced with a good flow of (necessary) projects.

Some of these measures include; an effort to standardise procedures through its adop-tion of the form contracts published by the International Federation of Consulting En-gineers (FIDIC) for government contracts; making huge investments in road, rail and educational projects; and pledging 500,000 new units to fulfill the increasing demand for housing. It also introduced the new white land tax that would encourage (or rather force) developers to build undevel-oped urban sites under their possession.

According to McKinsey and Company’s report, construction is one of the eight sec-tors that will generate growth and jobs in the upcoming years as the country tries to diversify its economy beyond oil.

Commercial and economic cities under con-struction such as King Abdullah Financial Dis-trict and the Prince Abdulaziz bin Mousaed Economic City also have huge potential to drive investment during this period. The up-coming $100bn King Abdullah Economic City, one of the most ambitious construction projects in the world, plans to create a city for over two million people with land area larger than US’ capital Washington D.C.

With huge construction ambitions under its belt, Saudi Arabia remains to be GCC’s biggest construction market with more than $1.2tri worth projects planned or underway, as stated in Deloitte’s report.

EDITOR’S NOTE

Lorraine Bangera Editor

The number of megaprojects and invest-ments have increased in Saudi Arabia in the last 15 years, which assures continued development within the country despite a slowdown. But, McKinsey and Company reports that in order for all these invest-ments to be effective it is important that Saudi Arabia adopts modern techniques and improves its operational management.

Even though there have been numerous steps that have been taken by the government to boost the sector, in terms of functional-ity it still has a long way to go in terms of projects being delivered on time and within budget. Surely with time, the nation would catch up and achieve a diversified economy unscathed by oil price fluctuations.

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read the latest editioN oN www.CBNme.ComneWsOn 20 February 2016, Damac Properties announced its latest project, Aykon City, to be built on Dubai Canal. The project is the first project announced in the Dubai Canal district lo-cated to Sheikh Zayed Road and Safa Park.The six-tower luxury project comprises of Dubai’s first

all-suites; 80-storey Aykon Hotel and Residences, a 63-sto-rey Damac Maison Serviced Hotel Residences, a 60-sto-rey apartment tower, a 65-storey office tower and two 30-storey ultra-luxury residential towers featuring car lifts to each unit and direct views over Dubai Canal and Safa Park.Construction on the four million sq.ft development will be-

gin mid this year, and is said to be completed by 2021.The project is done in collaboration with Meraas Holding

and holds a sales value is AED7.4 bn.Hussain Sajwani, chairperson of Damac said: “We are de-

lighted to announce a project of this scale in collaboration with Meraas Holding and on such a site in this premier loca-tion of the city.”

DAMAC TO DEVELOP FIRST DUBAI CANAL PROJECT, AyKON CITy

aykon City

World experts discussed investment opportunities across the Middle East, Central Asia and Central Europe, at this year’s Com-monwealth of Independent States – Global Business Forum (CIS – GBF) held from 17 to 18 February at The Atlantis, Dubai.

Dr Sahil Babayev, deputy minister of economy in Azerbaijan, revealed investment opportunities in the Central European nation.

He said that the falling oil prices gives Azerbaijan a good op-portunity to accelerate economic diversification and attract foreign investment in non-oil sectors.

He said: “This is a long process decision and we have certain achievements on this front. Currently, non-oil sectors are contribut-ing 71% to Azerbaijan’s overall GDP.”

Baku’s involvement in China’s Silk Road Economic Belt vision, a railway line connecting China with Central Europe, promises great potential for investors. The project will allow easy access of goods on both directions between Azerbaijan and China.

“This poses a huge growth opportunity for Azerbaijan, especially in sectors such as agriculture, food processing, machinery and tourism,” Babayev added.

To encourage more businesses and investments, the govern-

ment has introduced a liberal tax structure for SMEs and eased their access to financing. It is also providing visas on arrival for some nationalities to simplify accessibility.

In another session, president of Wissol Group Samson Pkhakadze discussed investment opportunities in Georgia. He talked about how the Central Asian nation has been successfully creating a diversified economy with infrastructure, transport, public services and construction sectors which widely contribute to the overall economy of the country.

Georgia has simplified its taxation process, with recent fast

paced reforms that have brought down the number of taxes to five. Pkhakadze said that up to 80% imports involve 0% taxes.

With its transparent and business-friendly taxation system, Pkhakadze said, the country offers plenty of investment opportu-nities for Gulf-based investors within its transport, infrastructure, energy, power generation, tourism sectors.

The CIS GBF 2016, hosted by Dubai Chamber, focussed on the theme, Ancient Routes – New Opportunities. It explored opportuni-ties on old trading links to neighbouring regions and beyond as well as new Economic Union Eurasian alliances.

investment opportunities open up in georgia and azerBaijan


Ukraine-based steel pipe producer In-terpipe has been the first to officially register its trademark with the Ministry of Economy in the UAE.This marks the first step in the fight

against the emergence of a counterfeit steel pipe industry in the UAE.With over 10 years of experience in

supplying steel in the UAE, the com-pany’s products are widely used in construction and infrastructure projects and can be found in approximately ev-ery third building in the UAE.The region accounts for more than

16% of the company’s global sales.“The depth of the counterfeit steel

industry in the UAE remains unquan-tified, however its existence presents a significant challenge, not only to the steel industry but to the construc-tion business as a whole,” said Andrey Burtsev, vice president of pipe sales at Interpipe MENA. “Uncertified steel cannot be guaranteed for its integrity, strength or durability.”

Abu Dhabi-based Tawazun Holding’s subsidiary Jaheziya appointed Dar Al-Handasah Shair and Partners as the lead design and engineering con-sultant on their Tawazun Safety Security and Disaster Management City (Jaheziya) on 20 February 2016.Tawazun Industrial Park is managing the Project Management Office of

the one million square metre project.Eng. Faiz Al Nahddy, CEO of Tawazun Industrial Park said: “The project

is on schedule and the planning and design work has been progressing in collaboration with Jaheziya’s stakeholders.”

According to Al Nahddy, the Jaheziya proj-ect team is currently evaluating bids received from a number of International Prop special-ists for provision of several props for the training facilities. Design work will continue through to the end of 2016 and the tender for the main construction works is expected to be released by early 2017.H.E. Ali Al Ahbabi, chairperson of Jaheziya,

said: “Our Nation is growing at a fast pace and the geo-political developments in the re-gion are strengthening our resolve to locally provide the training facilities.” The project is targeted to be operational by Q4 of 2018.

Dubai Properties Group unveiled the masterplan of Serena, a residential development within Dubailand, on 21 February 2016.The 8.2 million sq.ft project

aims to fulfill the demand for affordable housing.Serena will be developed

in five phases, with the first phase anticipated to be completed by Q4 2018.The project will include

clusters of four to six units with phase-one consisting of two- to three-bedroom townhouses and three-bed-room semi-detached villas.Abdullatif AlMulla, group

CEO of DP said: “Dubai Properties is helping lead the resurgence of Dubai’s real estate market through the smart and strategic development of iconic mixed-use destinations, as we anticipate and deliver on the rapidly chang-ing and diversifying Dubai.”

interpipe initiates the fight against fake pipes in the gCC

DUBAI PROPERTIES REVEAL NEw COMMUNITy DEVELOPMENT IN DUBAILAND

jaheziya appoints ConsuLtants for disaster management City

eng. faiz al nahddy and h.e. ali al ahbabi

andrey Burtsev


NEWS

Abu Dhabi-based Bloom Properties, part of Bloom Holding, has com-menced the construction of third phase of its latest project that involves the construction of 147 housing units on 17 February 2016.The project, Bloom Gardens, will

comprise of three bedroom town-

houses, semi-detached three bed-room villas and four and five bed-room villas, is set for handover by Q1 2017.Sameh Muhtadi, CEO of Bloom

Holding, said: “Given the persistent demand for the Bloom Gardens proj-ect, Bloom Properties is committed

to completing the project in line with the highest construction and quality standards and specifications.”The masterplan, Bloom Gardens,

is a gated community development featuring spacious villas inspired by Mediterranean architecture located in Abu Dhabi.

Dubai Electricity and Water Author-ity (DEWA) organised a workshop for over 250 contractors and consul-tants to discuss the Al Namoos ser-vice on 17 February at Grand Hyatt hotel in Dubai.The new service provides consul-

tants and contractors electricity con-nections of up to 150 kilowatts (kW) within 10 days.The government body has made

significant efforts to upgrade its pro-cedures for getting electricity. These procedures have been simplified from

three to two steps, reducing the time to complete them from by 22 days. The first step now only takes 8 days, and includes the application for elec-tricity connections through low-volt-age cables, with the first monthly bill due after the electricity is connected.

deWa eduCates ConstruCtion professionaLs on aL namoos

CONSTRUCTION OF BLOOM GARDENS’ PHASE-3 BEGINS

Al-Futtaim Engineering and Technologies introduced its new Control and Life Safety division on 17 February 2016. The division will carry out the design, installation and maintenance of fire protection and detection systems.

The division was approved by the Dubai Civil Defence after complying with all major international fire and safety codes and standards including National Fire Protection Association (NFPA), the UAE fire code, and Loss Prevention Certification Board (LPCB).

It will undertake design, engineering, supply, installa-tion, commissioning, operation and maintenance of fire-

fighting, emergency lighting services, gas fire suppres-sion system, fire alarm, BMS, Lighting control, access control and CCTV system for commercial, residential,

industrial, retail, hospitality and infrastructure projects.The division also carries out annual maintenance, break-

down maintenance of fire protection and BMS systems to the highest standards to ensure safety of life and property.

Dawood Bin Ozair, senior managing director at Al-Futtaim Engineering and Technologies said: “With an experienced leadership team, supported by qualified and experienced en-gineers and technicians, the Control and Life Safety division can handle the most demanding fire protection and building management system projects and maintenance requirements to deliver high quality work on time.”

aL-futtaim engineering LaunChes fire and safety division

Completed phase of Bloom gardens

dawood Bin ozair

Factory and Headquarters:Saih Shuaib - 4 | Dubai Industrial City | P.O. Box - 62182 | Dubai | United Arab Emirates | Tel: +971 4 3687600

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NEWS

Spanish hospitality group RIU Hotels and Resorts and UAE-based developer Nakheel signed a joint venture in Mal-lorca to build RIU’s first hotel in Dubai. The $170m hotel is located at Nakheel’s Deira Islands master development, and will include 750 rooms – largest hotel to be built on the island to date.This is in line with Nakheel’s plans

to build 10 international hotels across Dubai. This marks the first time the de-veloper has signed an agreement with an international hotel chain. Out of the 10, the first opened in February 2016 and another six have been signed and announced.Nakheel chairperson Ali Rashid Loo-

tah said: “This is a major milestone for our growing hospitality business and a significant step towards creating a new range of affordable, family resort-style hotel accommodation in the emirate, in line with the government of Dubai’s tourism vision for 2021.”

Rove Hotels has entered a joint venture between Emaar Properties and Meraas to expand its portfolio with a new property, Rove at the Park. The 458-room project will be placed adjacent to upcoming theme park Dubai Parks and Resorts in Jebel Ali.The hotel will have a contemporary design with Arabesque elements,

with a spaciously designed lobby and lounge, and rooms starting at 26sqm.The group has plans to operate 10 hotels before Expo 2020 Dubai, the

first of which is the Rove Downtown Dubai – scheduled to open in later this year.

Thyssenkrupp plans to focus more on Egypt and the MENA region as a whole because of its emerging economic power and capability for continued indus-trial development.With over 70 employees, thyssenkrupp has increased its workforce by

more than 40% in Egypt making it the only company to act as a full service EPC contractor.The firm’s plant engineer-

ing operations in Egypt rep-resent the company’s larg-est resource in the region.Given the growing need

for diversification and modernisation of the re-gion’s industrial base, there is a huge potential espe-cially in the area of energy efficiency programmes and downstream value chains, according to the firm.Boris van Thiel, CEO of Industrial Solutions MENA within thyssenkrupp,

said: “The importance of the MENA region for our business cannot be over-stated. Already today, more than 20% of our global sales are achieved in the region, and – together with our customers – we plan to grow further.”

jv signed for 750-room deira isLands hoteL

THySSENKRUPP STRENGTHENS ITS POSITION IN EGyPT

emaar and meraas to Work on rove hoteLs

deira islands

Cairo city

upcoming restaurant terrace in rove at the park

ali rashid Lootah, chairperson of nakheel with Luis riu, Ceo of riu hotels


Arabian Travel Market (ATM) taking place in April 2016 will showcase Oman’s most note-worthy tourism projects as it grows into one of the top des-tinations in the region.Currently the country has

$3.3bn worth of tourism re-lated ongoing projects. Its in-bound tourism numbers rise by an average of 7.4% per an-num in the decade 2005-14, with 1.4 million international tourists’ arrivals targeted by

2019 compared to the 1.1 mil-lion that arrived in 2015.Nadege Noblet-Segers, ex-

hibition manager at ATM 2016 said: “Oman’s Tourism Strategy for 2015 through to 2040 has an investment value of $35bn.”One of the major tourism

projects have been the two major airports in Oman that are currently being expanded to boost tourism.Recent figures from the

Oman Airports Manage-ment Company for both Muscat and Salalah airports recorded an 18% rise in pas-senger numbers through the capital’s gateway in 2015, surpassing the 10 million passenger mark for the first time in its operational his-tory, while Salalah Airport also saw a rise in traffic by 22% to reach more than one million passengers.Consultants, Hill Interna-

tional, have been working on both airports since 2012, and aim to building the biggest and second largest airports in the country, Muscat and Sa-lalah, respectively. Muscat Daily reports H.E.

Dr Ahmed bin Mohammad bin Salim al Futaisi, Minister of Transport and Communi-cations, said that work on the Muscat International Airport is 86% complete and will be done by end of 2016.

OMAN TO SHOwCASE $35BN OF TOURISM PROJECTS AT ATM 2016

DEwA AND EMIRATES COMPLETES SOLAR PV PROJECT

One megawatt solar pho-tovoltaic panels have been successfully installed at the Emirates Engine Mainte-nance Centre in Dubai.The project, a collabora-

tion between Dubai Elec-tricity and Water Authority (DEWA) and Emirates Air-

lines, is part of the Shams Dubai initiative.The new project located in

Warsan includes 2,990 pho-tovoltaic panels installed on the rooftop of the centre’s car park. The panels is ex-pected to generate 1,884 Megawatt-hours (MWh) of

electricity every year and will save around 800 tonnes of carbon dioxide per year.Waleed Salman, executive

vice president of strategy and business development at DEWA, said: “DEWA’s partnership with Emirates Airline is part of its efforts

to install photovoltaic pan-els on government build-ings and schools, to pro-duce clean energy locally, reduce electricity costs, contribute to the preserva-tion of the environment, and guarantee a sustainable future for the Emirate.”

visitors at atm 2015


NEWS

Economic experts predict the value of trade between the UAE and India will hit $100bn in 2020, Emirates New Agen-cy reports.Currently, India accounts for 9.8% of its total non-oil trade,

making it the largest importer of goods from the UAE. In addi-tion it ranks third in its exports to the UAE, accounting to about 9.2% of total exports. The total volume of foreign trade between the two nations has amounted to $60bn in 2014.India is the seventh largest economy in the world with a total

GDP worth about $2.1bn in 2015, according to World Bank statistics, achieving growth of up to 6.4% from 2014.In a report on economic and trade relations between the

UAE and India, the UAE Ministry of Economy recommended the strengthening of bilateral relations, increasing of the vol-ume of joint investments and expansion of bilateral trade to make the UAE India’s primary trade partner. The economic report highlighted that there are diverse sectors that attract for-eign direct investment in India, including transportation, oil, construction services, cement products, and electrical equip-ment among others.

Real estate expert says UAE real estate’s current slowdown should be seen as a minor correction than a major crash.David Dudley, international director at JLL MENA, said that

the while the impact of reduced oil prices on the economy will lead to a short-term slowdown in demand, this is occurring at a time of minimal supply completions leading to relatively stable market conditions.He said: “The market experienced a major upswing from

2013 to 2014, led by the residential sales market, with prime residential prices growing at 25% per annum. This pace of growth was unsustainable.“The current phase is a slow-down and a relatively minor cor-

rection, rather than a major crash – with reduced supply com-ing through at a time of weak demand, allowing underlying dynamics to catch up with the pace of value growth.”Dudley argued that while liquidity has tightened, funding

is still available for project finance and corporate level lend-ing – it is just more selective. “The good news is that demand growth continues from projects that started when oil prices were strong.”Dudley will be participating in the Abu Dhabi Market Over-

view, which runs on the opening day of Cityscape Abu Dhabi which will take place at the Abu Dhabi National Exhibition Centre from 12-14 April 2016.

jLL direCtor says ‘sLoWdoWn is not a major Crash’

TRADE BETwEEN UAE AND INDIA TO HIT $100BN IN 2020

exhibitors in abu dhabi Cityscape 2015

Project management firm, SSH, has been appointed as contract manager and site supervision consultant by Bahrain’s Ministry of Housing for the construction of primary infrastructure and bridge construction on Islands 13 and 14 (East) of Al Madina Al Shamaliya Islands (AMAS).

The mixed-use development will create an urban town on the northern coast of Bahrain.

The Islands 13 and 14 (East) is expected to deliver approximately 2,000 housing units under an afford-able-housing scheme launched by the Ministry of Housing. It requires primary infrastructure networks comprising of roads of over 5.5km, installation of utilities such as storm water, potable water, electrical, irrigation and telecommunications network, along with the construction of vehicular and pedestrian bridges to connect these two islands.

SSH infrastructure director Mark Jamieson said: “Al Madina Al Shamaliya is a very large project in the Kingdom, and will create an autonomous living space for thousands of people, we are glad we’re able to serve them with good, quality and sustainable infrastructure that is quality-assured.”

SSH SUPERVISES INFRASTRUCTURE wORK IN AMAS, BAHRAIN


NEWS

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forward-thinking organisations recognise the need for agility and will assist their employees with building their skills, knowl-edge and capabilities. smart organisations have already prepared a significant portion of their workforce to balance dis-ciplined approaches with more agile ones.

design thinking has emerged as a major trend for how inno-vative organisations approach problem-solving.

project managers are being asked to think more strategically as organisations flatten. pm is no longer just about managing the triple constraints, but rather about reaching solutions faster and demonstrating strong, direct business impact.

understanding how various projects affect others while maintaining a strategic perspec-tive requires pms to be able to focus on the details as well as step back to a more strategic, multi-project viewpoint.

Change is embedded in ev-erything we do. Because every project is a cause for change, change management is a re-quired skill in any pm’s toolbox. Change management places the emphasis on relational and strategic skills because techni-cal skills alone are not enough to effectively execute change.

economist intelligence unit study reported 83% of respon-dents claimed a more diverse workforce actually improves an organisation’s ability to engage a diverse client base.

understanding and interpreting the information about projects, people and relationships are essential skills for breaking down complexity into pieces easily understood by others. While project management used to be focussed on tech-nical execution, today’s world requires strategic.

those who know how to co-ordinate distributed teams will increase the likelihood for achieving success as well as career advancement as they demonstrate this most es-sential skill.

pms can no longer function without the ability to execute strategy. it requires up skill-ing to meet the demands of today’s marketplace. solid pms must have a multidisciplinary skill set that includes effective communications skills, analyti-cal thinking, strategic initiative, a business mind-set and techni-cal finesse.

pm best practices are being adopted by many non-pm roles such as marketing, sales and logistics. organisations that embrace pm’s key principles ensure that their talent pool is equipped with the skills and tools to not just get a job done, but deliver the full potential im-pact of a project.

THE PERMANENCy OF AGILE PROJECT

MANAGEMENT

THE NEED FOR DESIGN THINKERS

BROADENING STRATEGIC ROLE OF

THE PROJECT MANAGER

THE SIGNIFICANCE OF PORTFOLIO & PROJECT

MANAGEMENT

TURN, TURN, TURN – THE FUNDAMENTALS OF CHANGE MANAGEMENT

DIVERSITy MATTERS

MASTERING MODERN-DAy COMPLExITy

CO-LOCATION, GLOBAL TEAMS AND DISTRIBUTED wORK

UP-SKILLING TALENT

THE SPREAD OF PROJECT MANAGEMENT INTO NON-PM ARENAS

10 PROJECT MANAGEMENT TRENDS FOR 2016

SOURCE: TWENTyEIGHTy STRATEGy ExECUTION

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Pioneering Engineering Construction since 1881

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For over 130 years, Drake & Scull International PJSC has been shaping skylines and transforming the lifestyle of communities around the world.

Drake & Scull is an industry leader, with a proven history of delivering more than 700 projects through its General Contracting, Engineering, Rail, Oil & Gas, Water and Wastewater Treatment and Infrastructure development business streamlines across the region.


SUPPLIER NEWS

UAE-based Arkan Building Materials Co. announced a strong increase in both revenues and net profit in its preliminary unaudited results for 2015. The group reported revenues of AED876.9m, an increase

of 17% from AED751.8m in 2014. The reported net profit for 2015 is said to be AED101.1m for 2015, which is an increase 26% compared with AED80m in 2014. The results is said to be achieved through focussed market

penetration ad market share driven strategy. Arkan has also increased it export sales, primarily to GCC,

African and Asian markets. Arkan CEO Abdellatif Sfaxi said that despite increased pric-

ing pressure as a result of an oversupplied market, Arkan has continued to develop by exploring new markets, expand-ing its product portfolio and enhancing its value proposi-tion. “We have made significant operational progress in 2015 by increasing our market share and sales volumes through capitalising on our integrated products and services offering while ensuring increased operational efficiencies. As a result, we can now further compete on the international market.”

AkzoNobel Middle East and Easa Saleh Al Gurg Group estab-lished a joint venture company, Akzo Nobel Decorative Paints (ANDP), on 16 February 2016. The deal was signed in AkzoNo-bel’s Amsterdam headquarters, where officials revealed the new company will further strengthen its credibility with pre-mium brand Dulux. Group general manager of Easa Saleh Al Gurg Group Ab-

dulla Fareed Al Gurg said that this joint venture will comple-ment the existing business and leverage on the distribution network of the company. “The deep category knowledge due to the long-standing Dulux brand association, local mar-ket experience; and our mutual commitment to consumer-focussed innovation, gives us confidence that this partner-ship will be a long-term success.”Peter Tomlinson, managing director of AkzoNobel Middle

East added: “We are committed to growing in the Middle East region and strengthening the relationship with our local part-ners. Boosting our decorative coatings and paints offer in the region will provide a strong platform to support our customers in this increasingly important market.”

akzo noBeL deCorative paints estaBLished from jv

ARKAN REACHES 26% INCREASE IN 2015 NET PROFIT

Bentley Systems announced that Carollo Engineers has chosen its EADOC cloud-based construction management software as its corporate standard for capital project man-agement on 14 February 2016.

Carollo Engineers will standardise on EADOC across its construction services teams, bringing cost savings to all of its projects and eliminating the inefficiencies of managing multiple legacy systems.

The firm has been using EADOC previously and has first-hand about its ability to help manage risks, track construc-tion documents and communications, and control costs for construction managers at engineering, construction man-agement firms or infrastructure owner organisations.

By standardising its construction management process on EADOC, Carollo will further improve the management of its construction teams using an automated workflow and also improve control of project finances, including budget, funding sources, contracts, and change orders.

Carollo Engineers’ vice president Michael Warriner said: “Bentley’s EADOC gives us a competitive advan-tage by helping us deliver better projects with less risk and at a lower cost. Our new subscription will streamline EADOC’s availability among our teams and eliminate the administration cost of managing multiple, project-based subscriptions. Standardising our construction project man-agement practice through EADOC will take the benefits we’ve seen on individual projects and extend them across our organisation.”

CAROLLO STANDARDISES BENTLEy’S EADOC SOFTwARE

For more news about suppliers and the industry, visit www.cbnme.com

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b

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Hill InternationalThe Global Leader in Managing Construction Risk

www.hillintl.com 1.800.283.4088www.hillintl.com

For nearly four decades, owners and developers in the Middle East have turned to Hill International to manage their construction projects and programs throughout the region. Hill is proud to have helped our clients turn their most challenging visions into realities. We have participated in over 10,000 projects with a total construction value in excess of $500 billion, managing all phases of the construction process from concept through completion.

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COVER STORy

Tough times lie ahead for the Saudi construction sector but the low oil price environment could provide the catalyst for more private in-

vestment. Jason O'Connell writes

KINGDOM AT A

CROSSROADS

CONStRUCtION BUSINESS NEWS ME MARCh 201620

• Total construction contractorawards in Saudi Arabia acrossthe building, infrastructure andenergysectorsareestimatedtodecreasefrom$60.6bnin2015to$55bnin2016

• The building sector is forecasttorecordthehighestcontractorawardsworth$30.5bnin2016

• Saudi Arabia will need aroundthree million new homes by2025 due to the rapid rise inpopulationwhich isexpected tohit37millionby2025

• The infrastructure sector is ex-pected to recordan increase incontractorawardsfrom$5.37bnin2015to$10.95bnin2016.

*InformationprovidedbyVenturesOnsite

ConstruCtion snapshot of saudi arabia

price of crude oil has fallen to around 35$ per

barrel currently from over 90$/bbl 18 months ago

CONStRUCtION BUSINESS NEWS ME MARCh 2016 21


bbl 18 months ago. As a result the Saudi government reported a budget deficit of $97.9bn in 2015 and is ex-pected see a deficit of around $87bn for the coming year.

The 2016 budget includes a raft of measures to cut spending, overhaul subsidies and introduce taxation in a bid to make up for the shortfall left by dwindling oil revenues. For construc-tion contractors the result has been a cut in advance payments for govern-ment projects, fewer contracts, and slowed payments for services rendered. Some firms have even delayed paying their staff or laid off thousands of work-ers. Reuters reported in November that the kingdom’s largest construction con-tractor, Saudi Binladin Group, planned

It’s fair to say that these are uncertain times for the construction industry in Saudi Arabia. A sense of pessimism seems to have gripped the sector as Riyadh reins in spending on projects

while it grapples with a low oil price environment that some believe is likely to be the new normal rather than just a passing phase. But amid all the gloomy talk of delayed payments, a freeze on new contracts and tightening of gov-ernment belts, there are those who see an eventual silver lining if the cloud of low oil prices accelerates plans to re-form the kingdom’s economy.

The price of crude oil, which ac-counts for over 80% of government revenues, has fallen to around $35 per barrel currently from over $90/

to cull 15,000 of its 200,000 workforce. This desperate situation has led one

Saudi Arabian businessman to plead for royal intervention to prevent compa-nies from going under. “If the delay in payments continues, these companies will be at risk of default, or go com-pletely out of business,” Abdulrahman Al Zamil, president of the Council of Saudi Chambers business association, wrote in a letter to King Salman.

Other project developers hit by the downturn have begun talks to resched-ule debt payments. Jabal Omar Devel-opment, which is developing a multi-billion dollar project next to the Grand Mosque in Mecca, signed an agreement in February with the Ministry of Fi-nance to defer payments on a $800m

COVER STORy

al haram Mosque under construction in Mecca - saudi arabia


loan after failing to make a repayment of $173.3m on 1 January this year.

The bleak outlook for the Saudi con-struction sector was reinforced by com-ments made by Fawwaz al-Khodari, the CEO of major contractor Abdullah Abdul Mohsin Al-Khodari Sons, who at-tributed at least part of the pain the sec-tor is going through on recent labour market reforms.

“I think we should expect the diffi-cult situation in the sector to go on for 18 more months,” Fawwaz al-Khodari, told Reuters in an interview late last year. “Companies are facing troubles mainly due to the labour reforms. We will see the result of the budget defi-cit later, but now we are in a situation where the pain is already there. I be-

lieve many projects that are not seen as being essential will be first to be shelved, including those that were ten-dered but not awarded.”

Abdullah Abdul Mohsin Al-Khodari Sons reported a second successive loss in the fourth-quarter of 2015 which the company blamed on a drop in revenue and a rise in construction costs, partly due to the government’s decision to hike energy prices in the kingdom.

The pessimism gripping the construc-tion sector is reflected in a recent sur-vey by law firm Pinsent Masons which found that optimism surrounding Saudi Arabia saw a pronounced decline year on year. Asked which country will pro-vide the strongest growth opportunity in 2016, just 12% of respondents said

Saudi Arabia, a big drop from the 40% who believed it would be the strongest market during 2015.

Faithful + Gould believes some Saudi infrastructure projects are more at risk than others. The consultancy says resi-dential, retail and power infrastructure projects are likely to escape the worst of the cutbacks.

“In addition to not awarding new construction contracts, decisions have already deferred on major infrastructure projects in Mecca, Medina, Jeddah and Dammam,” it said recently. “The massive rail projects for the Saudi Rail Organisa-tion (SRO) must also be at risk. Station redesigns are being implemented on the Riyadh Metro project in an effort to reduce expenditure.”


COVER STORy

However it added: “Social infrastruc-ture projects such as the Ministry of Housing's $70bn programme and pow-er projects may escape the brunt of the cut-backs. With consumer spending remaining unchanged, the retail sector represents one of the only short term opportunities with multiple regional and super regional mall developments planned in Riyadh and Jeddah over the next 12 months.”

Economic shakEupThe government is said to have called in an army of consultants to help it reboot its economy and navigate the country through a sustained period of low oil prices. The National Trans-formation Programme 2020 will focus on ways to boost economic growth through greater efficiency and more in-volvement from the private sector.

In a December 2015 report titled Sau-di Arabia Beyond Oil: The Investment and Productivity Transformation, McK-insey & Co said Saudi Arabia may need public and private investments of up to $4tri by 2030 to boost productivity and create jobs.

“Over the next 15 years, the Kingdom is likely to face critical challenges, both fiscally and in its demographics, with heightened competition in the energy market and a big increase in the number of Saudis reaching working age,” the report said. “As a result, the economy is at a transition point. While much of the outside world has focussed on the very real challenges, we believe there are also substantial opportunities for the Kingdom to transform its economy to become more sustainable and less oil-dependent.”

Significant reforms in the labour mar-ket, business regulation, and fiscal man-agement could usher in a new cycle of prosperity for the Kingdom, McKinsey says. However it warns that the transi-tion will not be easy. Saudi Arabia will need to shift from its government-led economic and social model to a more market-based approach that brings it into line with other modern economies. The government is already doing this in some areas and has accelerated its efforts in the past few months.

Towards privaTisaTion?Mohammed bin Salman, the Kingdom’s Deputy Crown Prince, shocked the fi-nancial world recently when he raised the possibility of a part sale of Saudi Ar-amco, the world’s largest oil producer, possibly through an Initial Public Of-fering (IPO). While talk of such a move has since been played down, it does seem that Saudi Arabia is very serious about opening up its economy to more private investment.

Saudi Minister of Economy and Planning Adel Fakeih recently said:

“The ministry examined 146 fields and services and that 26 fields will be chiefly privatised and thoroughly addressed this year.” Privatisation will include the sale of assets such as air-ports, municipalities, hospitals and education, he said.

BMI Research has urged Saudi Ara-bia to use the public-private partner-ship (PPP) model to overhaul more of its airports following the successful completion of the new $1.2bn Prince Mohammed bin Abdulaziz Internation-al Airport terminal in Medina airport

King abdulaziz international airport

King abdullah Economic City (image courtesy of adrian smith + Gordon Gill architecture)


last year, adding that the success of the project meant that a model is already in place. The government subsequently announced that King Khaled Interna-tional Airport in Riyadh will be the first asset to be privatised this year.

For new projects, PPPs could offer a way to encourage private investment in the construction sector while eas-ing the financial burden on the gov-ernment. These arrangements have become widespread elsewhere in the region, notably in Kuwait and Oman, while Dubai introduced a PPP law in November 2015.

But though Saudi Arabia has under-taken some power and water infra-structure projects through the Indepen-dent Power Project (IPP) model, which involves private companies taking on part ownership of the projects, it has been relatively slow to consider the benefits of PPPs until now. The govern-ment will need to follow the example of its neighbours by putting in place a solid legal framework before it can move forward with PPPs.

Despite the negative sentiment swirl-ing around the construction sector, law firm Pinsent Masons’ report said says Saudi Arabia is likely to remain a highly attractive market with economic reforms now firmly on the government’s agenda.

“As the Kingdom’s economy adjusts to lower oil prices, there have been some positive diversification measures discussed in the Kingdom, which if implemented should enable greater private participation in the economic development of the country,” the re-port said.

king abdullah Economic ciTy (kaEc) - $100bnKingAbdullahEconomicCity(KAEC) isarguablythemostambitiousconstruc-tionprojectintheworld,designedforthespecificpurposeofdiversifyingSaudiArabia’soildependenteconomy.Theplan is tocreateabrandnewcityof twomillionpeopleandoneof the

world'sbiggestdeepwaterportsontheRedSeacoastatacostof$100bn.Lo-cated140kmnorthofJeddah,theprojecthasundergoneanumberofrevisionssinceitwasfirstannouncedin2005.Progresswasslowedbytheglobalfinancialcrisisin2008andtherecentdropinoilpriceshasshroudedtheprojectinfurtheruncertainty.About40projectshavebeencompletedatthecitytodate,includingtheport,whichopened inJanuary2014though itwillbemanyyearsbefore itreachesitsultimatecapacityof20million40-footcontainerequivalentunitsperyear.KAECisslatedtobefinishedaroundtheyear2035.

makkah grand mosquE dEvElopmEnT - $26.6bnTheMakkahGrandMosqueredevelopmentprojectwaslaunchedin2011andwillseeIslam’sholiestsiteexpandedatacostof$26.6bnbySaudiBinladinGroup.SaudiArabia’sKingSalmanbinAbdulazizlaunchedfivemoreprojectslastJulyaspartofthethirdphaseoftheexpansionoftheGrandMosquetoaccommodatemorethan1.85millionworshippers.Workincludestheexpansionofthebuildingwhichcovers1.47millionsquaremetresandincludes78newgatesatgroundlevelsurroundingtheexpandedbuilding.

riyadh mETro - $22.5bnOfficialshaverecentlydeniedthatthe$22.5bnRiyadhMetroproject-whichwillconsistofsixlinescovering176kmwith85stations-willbedelayedbeyonditsscheduled2018completiondate.Justoveraquarteroftheprojectiscompleteasofnow.TheFastconsortium,ledbySpanishconstructiongroupFCC,willbuildthree lines inadealworth$7.82bn.TheBechtel-ledBACSconsortiumwona$9.5bncontracttobuildtwolines.TheArriyadhNewMobilityGroup(ANM),ledby Italy’sAnsaldoSTS,willconstructthefinal line inacontractworth$5.21bn.SiemensandAlstomaresupplyingtherollingstock.

king abdullah Financial disTricT (kaFd) - $11.6bnTheKingAbdullahFinancialDistrict(KAFD)intheSaudicapitalRiyadhwasorigi-nallyslatedtocompletein2015butplanshavebeenrevisedanumberoftimesanditisnotknownexactlywhenthemegaprojectwillbefinished,thoughpicturesshowconstructionhasreachedanadvancedstage.Originalplanscalledfor34towerswiththetallestbeing385metresbutthathassinceincreasedto59.KAFDwillcoversome1.6millionsquaremetresandincludeofficespaceaswellasresi-dential,threefivestarhotelsandanumberofrecreationalareas.Itwillbehometosevenmosques,ahugeconferencecentre,theSaudiStockMarket(Tadawul)andtheSaudiCapitalMarketAuthority.

king abdulaziz inTErnaTional airporT - $7.2bnThefirstphaseofJeddah’sNewKingAbdulazizInternationalAirportisscheduledtobegincommercialoperationsinmid-2017,raisingtheairport’scapacityfrom17 to30million passengers per year. SaudiBinladinGroupwon constructioncontractsfortheprojectworth$7.2bnin2010.Uponcompletion,theairportter-minalwillhave46gatesandbecapableofhandlingtheAirbusA380superjumbo.AsJeddahisthegatewayformillionsofMuslimpilgrimstoSaudiArabia,plansincludeaHighSpeedraillinkandLightRailTransitconnectionstotheholycitiesofMakkahandMadinah.Secondandthirdphaseexpansionswilleventuallyraisethenewairport’scapacityto80millionpassengersperyearby2035.

saudi arabia’s biGGEst ConstruCtion projECts

“As the Kingdom’s economy adjusts to lower oil prices,

there have been some positive diversification measures

discussed in the kingdom, which if implemented should enable greater private participation in the economic development of

the country”


Project controlOkbah Abdulkarim, executive director at Artar Real Estate Development talks about running the company in the UAE and how experienced developers could face unstable markets with quality projects

IN PERSON

okbah Abdulkarim is a man who values positivity. During the financial crash of 2008, when business faced its toughest time, Abdulkarim was sure the market would bounce back and the construction industry would recover.

Currently he serves as executive director at Artar Real Estate Development. The Saudi-based company has a track record of 50 years with construction and development around Saudi Arabia, France and the UK. In Saudi Arabia alone, the company has over 35,000 employees.

Abdulkarim heads all the operations in the UAE, since he established its branch in UAE two years ago.

The executive director has extensive experience in the field of construction dating back to 22 years. Unofficially, however, he has been affiliated with construction since the age of eight. As a child he worked alongside his father in his family contracting business.

After earning a degree in civil engineering, Abdulkarim worked as a contractor before he made the move to be-come a developer.

In Dubai, Abdulkarim has worked with Select Group for six years as the head of development and with Emaar as

CONStRUCtION BUSINESS NEWS ME OCtOBER 201526


the senior manager of projects for four years. Some of his most recognised projects include Dubai Marina Mall and three Address Hotels across Dubai. He has also worked in several international projects in Morocco, Tunisia, UK, Croa-tia, India, Syria and Lebanon.

Two years ago, he was sure his next move should be to head a company himself, which is when he started the division of Artar here in the UAE.

arTar in ThE uaEThe UAE branch of Artar works in both investments and developments, with its first luxury project, Mada Resi-dences, launched in Downtown Dubai in January 2016. The project comprises of a total of 193 spacious units of vari-ous sizes. With floor areas starting at

882 sq.ft and each room styled to be light, airy and spacious.

Apartments within the project will be available to clients through a spe-cial investor-friendly payment plan from Artar, which requires 30% during the first year and the final 70% to be paid upon completion of the project. The company is in the process of es-tablishing commercial arrangements with local banks to facilitate conve-nient finance terms for buyers.

Foundations on the tower were completed a month ago, comprising 10% of the entire project and setting construction on course to complete according to schedule.

Main consultants and contractors on the project include National Engineering Bu-reau (NEB) and Construction and Recon-

ongoing construction at Mada residences project

struction Engineering (CRC) respectively.The company also has another on-

going project in Dubai within City Walk. The project, Number 2-B build-ing, which will be completed in June and handed over in July 2016. Howev-er, Abdulkarim clarifies that this build-ing will not be on sale but kept as an asset for the company.

Artar is currently looking for many other plots across Dubai including in Downtown Dubai and Dubai Parks and Resorts. “We are looking for plots for development, preferably to get mixed-use projects.”

Artar works on a fixed income basis. Abdulkarim explains that the company has its own fund, which allows flex-ibility for buyers. “Our payment plan of 30% initially and 70% on handover


IN PERSON

is unique. Not many developers can afford this kind of payment scheme and this helps build confidence in our brand among our customers.”

dElivEring a good projEcT“A developer is always judged by the quality of its project,” Abdulkarim ob-serves. Every time he works on a proj-ect, he makes sure he works on the whole lifecycle of the project, from the design to handover.

“You have to study your project well,” he insists.

According to him there are many factors that need to be met when a developer wants to work on a project.

The number one thing every devel-oper must keep in mind, he states, is if there is a demand for the project. “There is no point creating something that does not fulfill anyone’s requirement.”

Secondly, he says, there needs to be a target audience around whose needs you could mould your project.

With Mada Residence, Artar is tar-geting the GCC buyer, specifically the second home market, which is grow-ing significantly due to Dubai’s attrac-tion as a tourist destination, in addi-tion to increased airlift. In tailoring the product to the needs of this guest pro-file, the smallest unit, a one bedroom apartment, covers 1,100 sq.ft.

He adds: “You have to study prices so that what you are creating is not overvalued or undervalued.”

Out of all the factors, Abdulkarim admits that picking the right location for the project is one of the most cru-cial in his rule book. “You have to make sure to choose a good location, with the right infrastructure around it to make it accessible.”

He says that some developments are built far away from the main city and the area around it will still need 10 to 15 years to be developed. This, ac-cording to him, is not good planning.

Whereas there are some good areas in the inner city, where the infrastructure is complete and have everything is at your doorstep. “It is a blatantly obvious to all developers that location matters.”

It is also important to choose a good team to work with and build, which includes the right consultants and the

Empire state building in new York was constructed in one year and 45 days

right contractors. People who have a good track record.

Artar makes sure to be very thor-ough during the delivery of the proj-ect. Abdulkarim discloses that he pri-oritises the design and tries to make the least amount of changes to it.

He points out that the design must be 100% complete and materials for the project should be selected before the construction begins. “Developers need to stop making changes while construction is ongoing in the project.”

markETing your projEcTAbdulkarim confesses that a developer has a lot of challenges, first to build a project and then to sell.

He says that there needs to be a strategy to sell and market a product. “Otherwise you will build it and noth-ing would come of it.”

You need a good marketing team and an excellent sales team. They need to know how to make and main-tain connections and how to market your project to the right people.

In Artar, Abdulkarim provides the team with a very comprehensive guide that includes all the details about the project so that they would be capable of answering any technical questions thrown in by customers. He and his team try their best to provide what the customers need. He states: “We are one of the very few companies to show the buyer the materials so that they can touch it and know what they are going in for.”

markET viEwAbdulkarim reasons that Dubai has huge potential when it comes to hospitality projects. “As a tourist hub, Dubai is one the top ten cities in the world. I think there is a huge potential in the market, with the need for serviced apartments with a good five-star operator.”

He explains that most of the tour-ists making their way into the city are coming from the GCC, and GCC na-tionals find it much more comfortable to live in a serviced apartment rather than hotels.

Apart from serviced apartments there is also and increasing demand in residential apartments (for sale and


rent) according to Abdulkarim. How-ever, he acknowledges that transac-tions in the residential sector have been in decline since 2015 and have been low this year. But still he thinks the market is very competitive at the moment and people should use this opportunity to invest with all the at-tractive prices.

He suggests investors should know

more about the development before investing. “If you want to buy prop-erty, you should buy it from someone who is well known and experienced.”

“I think some new developers, es-pecially those who do not come from a development background, are not serious about the development and are just here to make money.”

He says that most of these kinds of

Mada residence in downtown dubai

UAE's improved regulations

Since 2012, there have been many

changes within the UAE government to

make regulations surrounding real es-

tate more transparent. The Real Estate

Investor Protection Law or Tanweer,

drafted by the Dubai Land Department

(DLD), is a framework stating the rights

and duties of the real estate investors.

It helps master and sub-developers,

investors, financial institutions and real

estate brokers. The Central Bank has

also introduced a strict loan-to-value

ratios for mortgages, and the DLD has

doubled the registration fees to keep

speculators at bay.

developers cannot last the tough times and end up leaving a project midway or getting delayed by three to five years. “When a project gets delayed there are many consequences to be faced. Time is money, and a delay will cost them.”

Delays, he explains, are caused by many reasons, and could be the devel-oper, the contractor or the consultant’s fault. “Sometimes all of them. But to avoid delays one thing that needs to be done is to work with a good quali-fied team.”

Abdulkarim says that new, investor protection laws work in favour of the investors and developers. “It protects investors, the image of Dubai and the rights of the people.

“There are many developers out there, if you check RERA you will find over 1,000 developers. But very few of them are active in the market.

“Stricter regulations, however, have discouraged a lot of inexperienced developers who are trying hustle their way into the local market.”


ANALySIS

Abdullah Alharoun, associate at International Counsel Bureau in Kuwait, analyses how Kuwait could be the new capital of public private partnership in the GCC

Partnering uP with Kuwait

Since its independence in the early 1960s, the State of Kuwait has embarked on an extensive modernisation exercise. This manifested in a broad pro-

gramme of construction projects, which entailed strong partnership between pub-lic and private entities. In fact, Kuwait was miles ahead of its GCC counterparts in this area, with an impressive roster of construction projects, including modern roads, cities, sporting facilities, airports, and oil and gas facilities.

However, following the first Gulf War in 1990, this construction boom decel-erated significantly. Amongst several reasons, one of the things that attrib-uted to this is the unsupportive legal framework which gave birth to the old public private partnership (PPP) regime housed within Law No. 7 of 2008. The old regime created several issues that contributed to the negative reputation Kuwait has earned when it comes to PPP projects. In fact, Kuwait’s PPP projects were often criticised for being costly, rigid, and not granting fair com-petition to international players.

That being said, over the past two years the paradigm seems to be shifting. The state has taken steps to modernise the legal infrastructure in an effort to do away with outdated legislation, includ-ing the enactment of a new PPP law, Law No. 116 of 2014, which came into force on the publication of its executive bylaws on 29 March 2015. The new PPP law aims to remedy many of the nega-

tive aspects that had plagued the old regime and bring it in line with interna-tional best practices.

projEcTs in ThE pipElinENotwithstanding the dramatic plummet-ing of oil prices, which has a direct im-pact on public expenditure in Kuwait, the PPP programme spearheaded by the Kuwait Authority for Partnership Projects (KAPP) appears to be moving ahead with an impressive catalogue of megaprojects. This is further proven in 2015 when proj-ects awarded were worth $30bn, com-prising every sector within the economy; from oil and gas projects by the Kuwait National Petroleum Company, to con-struction projects by the Ministry of Pub-lic Works, as well as projects aimed at enhancing and expanding the current power, water and transportation facilities.

Modern infrastructural projects includ-ing the new road network connecting the various regions of the country are cur-rently underway.

Kuwait is also adamant about develop-ing its public transportation and logistics systems, with the introduction of the Ku-wait National Rail Road project providing integrated links to Kuwait’s sea ports, air-ports, new cities, and neighbouring coun-tries. Furthermore, the much talked about Kuwait metro project seems to be on track to commence soon, with plans to create a system with a ticket price of $20bn, and which will eventually consist of 69 stations spreading over 160km of rail.

incEnTivEs and incrEasE oF conTracT TErmThe spirit of the PPP Law intends to en-courage unsolicited proposals from local, regional, and international players and contractors in various industries. From an intellectual property standpoint, the PPP Law provides extensive protection to the concept of the proposals. The law also has streamlined application processes to classify such proposals as “initiatives”, and the feasibility studies


of which are awarded certain subsidies. Additionally, one of the interesting

developments in Kuwait’s modern legal frameworks is the well-defined cross-applications of incentives between the PPP law and the direct investment pro-motion law (Law No. 116 of 2013 or the KDIPA law). The executive bylaws of the PPP law provide for specific in-centives set forth on a project-by-project basis and granted to investors and con-tractors. Such incentives include exemp-tions from income tax and other duties, in addition to tax holidays conferred by virtue of the KDIPA law. According to the PPP law, the decisions taken by the PPP “Higher Committee” regarding in-centives and exemptions are binding to all public bodies in Kuwait.

Kuwait City’s skyline

Furthermore, the term of the PPP con-tracts, which had been criticised as be-ing too short and restrictive of economic feasibility under the old regime, has been extended to a maximum of 50 years - from the date of completion of construc-tion, development and installation of project works.

projEcT FinancEOne of the main developments in the PPP law is the relaxation of rules when it comes to financing the projects. In stark difference to the old regime and for the purpose of giving comfort to lenders, the PPP law allows the grant-ing of security over assets (such as the project itself), pledge of shares in the project company or over any receiv-

ables due to the contacting investor or project company.

Such steps aim to widen the pool of funding available to investors, by provid-ing a robust and easily enforceable cov-enants package to lenders. Historically, as the rules under the old regime were averse to the granting of securities and the adoption of limited or non-recourse financing, projects in Kuwait were not af-forded the same competitive advantage in securing the various financing op-portunities by lenders. Additionally, this move is projected to stimulate the local banking system.

ThE compETiTivE advanTagEIt is crucial for players who intend to take part in the Kuwaiti projects programme to understand the business environment of the country. Kuwait - like many countries in the GCC - has several peculiar rules re-garding the need for a local component in the form of local agent (except for some exempt circumstances under the KDIPA law). It also suffers from a lack of spe-cialist courts and rigid local labour laws. Long lead items, such as licensing and the establishment of project companies, must be understood and planned for with ap-propriate buffers. The often bureaucratic landscape of the public sector, with which any player (whether investor, contrac-tor, sponsor, and managers) has to work within, must be understood and planned against. The necessity of obtaining spe-cialist advice from consultants who under-stand this business environment is often overlooked and undervalued.

The State of Kuwait is under increas-ing pressure to diversify its economy in order to move past the hydrocarbons-dominated national income. The dramat-ic decrease in oil prices has prompted serious plans to develop the country’s physical and legal infrastructures, in an effort to liberalise its markets and be-come a hospitable environment - for both foreign capital and technical know-how. The modernisation of Kuwait’s PPP programme, and other supporting legislations, is one step towards achiev-ing these goals.

Kuwait City


ANALySIS

Inferno at The Address Downtown Hotel on New Year’s Eve has re-ignited the debate over fire safety in Dubai. Jason O’Connel reports

theburningissue

the address hotel downtown caught fire on the new Year’s Eve 2015


As the clock counted down towards the dawn of 2016, Dubai became the centre of the world’s at-tention when a fire broke

out at The Address Downtown Hotel just a few hundred metres from the world’s tallest building, the Burj Khal-ifa, where a spectacular fireworks dis-play was due to herald the arrival of a new year. Live images, beamed around the globe, showed the blaze quickly engulfing much of the 300-metre-tall building. But after barely a delay, the fireworks proceeded as planned while thick black smoke billowed from the nearby hotel.

The high profile incident inevitably reignited the debate over the fire safety credentials of Dubai’s predominantly high-rise building stock, raising all too familiar questions over the type of clad-ding used in facades. After all, this was the second time in 2015 that a serious fire at a skyscraper in Dubai had gar-nered unwelcome world headlines, following a similar incident in Febru-ary at the 79-storey residential Marina Torch Tower. Starting in an apartment on the 50th floor, the fire quickly spread upwards, destroying around 100 apart-ments and scorching large sections of the building’s cladding.

A carelessly discarded cigarette sparked another inferno in November 2012 at the 34-storey Tamweel Tower in Jumeirah Lakes Towers (JLT). The build-ing was almost entirely gutted by the blaze and has been uninhabitable ever since, though renovations are finally underway after a long delay caused by wrangling over insurance payments.

These are just three of the most high profile incidents to hit Dubai in recent years but there have been others else-where, notably in neighbouring Shar-jah. And it must be said that this is not the only part of the world to experi-ence issues with this type of ‘flamma-ble’ cladding. Similar controversies are currently raging elsewhere, in China and Australia, following recent fires in high rise towers.

By some miracle, none of these three blazes resulted in any fatalities and, according to various reports, eyewit-

nesses praised the quick reactions of the emergency services in evacuating the buildings safely. Dubai Police has since pinned the blame on an electri-cal fault at the 63-storey Address Hotel on New Year’s Eve. Emaar Properties, the developer of the hotel was quick to pour cold water on claims by some guests that alarms and sprinklers had failed to go off.

The company said in a statement: “Our systems, across all properties, are regularly tested by third party entities and cleared. We would like to reiterate that the fire alarms did go off and any information to the contrary is false. We are awaiting the findings and the as-sessment report. We will take appropri-ate steps, as needed, after we receive the report.”

Much of the debate about the fires has once again centred on the type of cladding used in the construction of many of Dubai’s tallest buildings. Alu-

minium Composite Panel (ACP) clad-ding, which consists of a core of plastic or polyurethane filling between two al-uminium panels, is widely installed and has been linked to a number of fires in high rise buildings, most of which were built prior to 2012 before tougher building rules were introduced banning the use of flammable cladding. Experts say the prevalence of this type of clad-ding explains the speed at which fires appear to spread across the façades of tall buildings. This raises serious ques-tion marks over the fire safety of many tall edifices built before 2012, which would constitute the majority of the 250-plus tall buildings in Dubai. Indeed the Dubai-based Centre for Sustainable Development estimates that around 70% of high rise towers in Dubai may have flammable cladding panels.

The composite sheets used in the panels that covered The Address Hotel building were made by Sharjah-based

the address hotel downtown on 1 january 2016


Eurocon Building Industries, a unit of Mulk Holdings International. Shaji Ul Mulk, chairperson of Mulk Holdings, subsequently confirmed in an interview with Abu Dhabi-based newspaper The National, that most of the cladding seen on buildings across the UAE are not fire rated and consist of older versions of the panels containing a high proportion of flammable plastic. Newer versions, manufactured since 2012, contain only very small amounts of plastic, he said.

Mulk says his company already produces non-combustible panels in Turkey, where regulations are stricter, and he plans to start manu-facturing non-flammable versions of the aluminium panels in the UAE, in anticipation of tighter building safety regulations and increased demand for fireproof materials.

nEw FirE saFETy codEThe UAE Fire and Life Safety Code of Practice that came into force in 2012 drew from sections of international codes and standards as its basis with an overlay of local requirements. Follow-ing the Tamweel Tower fire in 2012, the code was amended to include the requirement that all Aluminium Com-posite Panels (ACPs) or other cladding to be fitted to new buildings must be fire rated, however it did not require older buildings to be retrofitted with fire-rated cladding.

In the wake of The Address Down-town inferno, UAE Federal authorities have moved quickly to address public safety concerns. Plans are in place to introduce a new fire safety code in the spring following a nationwide inspec-tion of buildings. Whereas the previ-ous code had 19 chapters the new one will have 26 chapters. By April, Federal authorities will also release a compre-hensive database listing at-risk struc-tures throughout the entire country. It remains to be seen whether the review will compel building owners to invest in replacing façade cladding that does not comply with the new regulations. However some clues have emerged as to what the industry can expect from the new, stricter Fire Safety Code.

Large fire breaks in tamweel tower, dubai, on 18 november 2012

cladding To bE rEsTricTEd?Officials have suggested that the use of cladding could be restricted in new buildings in the UAE taller than nine storeys because fire fighters struggle to reach floors above that height. Major General Rashid Thani Al Matrooshi, di-rector of Dubai Civil Defence, was quot-ed by local news as saying that building owners wanting to use cladding above the ninth floor will be required to have sections of the façade without cladding to help prevent fires from spreading so

easily. He added that buildings taller than nine storeys will only be allowed to use cladding if they are completely en-circled by a road that allows fire trucks easy access to the building.

prosEcuTion oF suppliErsThe new code will, for the first time, allow for prosecution of manufactur-ers who sell building materials not approved by civil defence and munic-ipalities. Current rules against manufac-turers from selling material banned by

ANALySIS


ing owners and consultants. Pramod Challa, chief of engineering at Dubai Civil Defence, told the media that consultants will be responsible for the overall operations and lifecycle of a building, such as acquiring the de-sign NOC from civil defence bodies, contractor qualification, inspection during construction, and testing and commissioning works.

The updated code will include details highlighting liability in the event of emergencies and incidents. “If the real estate agency is running the building’s operations then liability is transferred from the owner to the real estate company,” Lt Col Ibrahim said. “The company will be respon-sible to civil defence in matters per-taining to the building’s maintenance and systems.”

whaT will iT cosT?Unsurprisingly, building owners are anxiously awaiting the new building safety regulations in April. The cost of retrofitting a high rise building with all new cladding could become a mil-lion-dollar job. Then there is the add-ed confusion over who would have to foot the bill for a potentially costly refit - building owner, developer, de-signer, contractor, insurer, etc.

Sheena Sood, partner at law firm Beale and Company where she leads the construction, engineering and in-frastructure team, said following the Torch Tower fire last year new mea-sures implemented in respect of exist-ing buildings would “most likely af-fect buildings owners and operators. However they may seek to recover costs from designers, inspectors, con-tractors and their insurers.”

New regulations therefore could have legal and cost ramifications that will ripple through a real estate business already facing a degree of uncertainty due to the economic out-look in the region. But it could also provide significant opportunities for suppliers and consultants specialis-ing in fire safety. The industry will be holding its breath ahead of the announcement in April.

skyscrapers in dubai

authorities are not legally enforceable. “Safety is number one, so from man-

ufacturers we will not accept material not on our list. It will be an offence and illegal if found,” Lt Col Jamal Ahmed Ibrahim, director of the Dubai Civil Defence preventive safety department, said recently at the Intersec tradeshow in Dubai.

morE vigilancEAnother facet of the new code is that building owners will have to renew

safety certificates, known as no-objec-tion certificates (NOC), from Dubai Civ-il Defence on an annual basis instead of receiving a one off certificate when building construction is complete. This will ensure that buildings comply with fire safety regulations even after they have undergone significant alterations or renovations post construction.

liabiliTyThe updated fire code will place in-creased emphasis on the role of build-

construction business news me march 201638 CONStRUCtION BUSINESS NEWS ME MARCh 201638

COMMENT

its scope for further commercial suc-cess remains huge. To safeguard the region's market position, and ensure it stands out against its competitors, commercial spaces in airports need to be expertly designed and ex-ecuted to enhance retailer-consumer engagement, encourage dwell time and increase passenger spend in a terminals’ stores.

This is more challenging in an airport environment compared to, for example, a shopping centre, given that the nature of airports means people are restricted by the amount of time they can spend in a particular area. The team at Leslie Jones ap-plies its knowledge of consumer and retailer needs alongside the unique requirements of transport hubs to produce successful commercial strate-gies within these unique environ-ments. Airports such as Dubai are able to boast a higher volume of air passengers going through transit for longer periods of time and this drives a need for us to create more innova-tive design solutions that will capture the audience’s imagination, while supporting the occupier requirements.

Typically for Dubai, only around 30% of passengers flying to the airport have Dubai as their desti-nation. Passengers often tend to spend a few hours at the airport waiting for their connecting flight. It means Dubai’s existing and new airports can capitalise on increased consumer free time. To do this, an airport needs to meet sophisticated consumer requirements and provide

AIRpORT DESIGN STRATEGY TAKES Off

Simon Scott, head of international business at Lesley Jones Architecture, analyses how airport terminal design in the UAE is on course for commercial success

investment value of around $12bn in civil aviation infrastructure to spend during this year alone.

saFEguarding poTEnTialDespite increasing competition, the scale of aviation infrastructure development in the Middle East and

T he International Air Transport Association recently reported that global air passenger traffic grew by 6.5%

in 2015 – the fastest rate of growth since 2010. While this is cause for celebration within the aviation in-dustry, air passengers also now have a greater choice than ever before when choosing which airports to fly from, fly to and use for transit. Drawing from my experience with working with Dubai Airports, after Leslie Jones Architecture was com-missioned to support the commer-cial design strategy for the future Al Maktoum International Airport, I think the commercial design needs to prioritise passenger experience more than anything else.

The UAE is already home to some major global, market-leading avia-tion hubs and this number is set to grow as the region capitalises on its location between continents. Dubai International, in particular, has achieved phenomenal success and overtook London Heathrow in 2014 as the world’s busiest airport.

The region benefits from a strate-gic position where West meets East, making it a practical connection point for long-haul flight transfers. It is, however, coming up against increasing competition as countries across Asia are now investing in the infrastructure that will allow them to compete for significant market share. In January 2016, China was making headlines as it announced an

SimonScotthasnearly20years’experienceincommercialdesign,bothintheUKandinternationally.Havingjoinedthefirmin2014asheadofinternationalbusiness,heisintegraltoLeslieJonesArchitec-ture’scontinuedexpansionacrossglobalmarkets,withaparticularfocusonEMEAcountriesandCISstates.HisinternationalreputationinairportdesignhasseenhimworkondesignstudiesforAbuDhabi,DubaiandLyonAirports.HehasalsohelddesignanddeliveryrolesonGatwick,FaroandHeathrowAirports.

SIMON SCOTT


a passenger experience where shop-ping and leisure are truly integrated.

airporT ExpEriEncE as virTual rEaliTy The concept of retail and leisure as one experience is not alien to Dubai. In fact, the city is a very typical ex-ample of where the two are expertly combined to reflect the climate and consumer lifestyle.

People in Dubai go to a shopping centre for a leisure experience and social interaction as much as the shopping trip. The two are equal motivations and so shopping centres in the emirate cater for both, which in turn provides tenants with a longer customer dwell time in the vicinity.

For an airport commercial design solu-tion, it is about capturing what Dubai has already achieved and adapting it for the airport environment. As a result we combine local customs, worldwide trends, and the internal commercial space in the airport. Thus, the design approach for airports reflects what is happening in the surrounding city combined with best practice across the globe.

dEsign For liFEsTylE and dEmographicA higher quality of integrated retail and leisure is witnessed across the UAE, yet it remains an emerging con-cept in countries like the UK where shopping centres are reserved for those who mainly come to shop but socialise elsewhere.

Leslie Jones is working with land-lords and developers to shift this perception by extending leisure use across the country’s shopping cen-tres and high streets to combat the rise of e-commerce. This provides us with the experience to deliver aspi-rational, integrated designs interna-tionally, while remaining sensitive to a project’s unique environment and local context. The range of activities you can do outside in the open air is limited in the UAE, mostly owing to its hot climate, and this results in a higher expectation from consumers looking for a more diverse range of options from commercial spaces.

Airports in the UAE are also host to a much wider demographic of passengers, given its aforementioned

geographical location between conti-nents. This means the design solu-tion for the terminals must meet the requirements of a more diverse range of people. From people flying with low cost airlines to the most luxurious carriers the world has seen, the com-mercial development we put in place must work harder to reflect this diver-sity. Our approach includes creating a range of store sizes and designs to provide the right tenant mix. From high end to high street, the two must come together alongside the right bal-ance of food and beverage.

The flow of people is also unique in an aviation context, where every-one enters the main terminal com-mercial space from the same points through security, and so our designs must allow passengers to easily navi-gate the range of different retail and leisure on offer.

gaTEs To ThE counTriEsAirports are gates to our countries and an airport’s ability to represent its home nation is extremely important. The UAE continues to grow and plan for the future and has become a considerably more open market for air passengers over the past decade. As the region be-comes more popular as both a tourist destination and quick stopover location on long-haul flights, developers need to capitalise on airports’ potential to represent the region’s prosperity and identity. Consequently, they are geared to invest in ensuring airports are indeed host to the latest innovation in airport design to ensure passengers leave these airports truly impressed.

A huge amount of potential in the UAE’s aviation sector is undoubtedly ready to be exploited, yet the ability to ensure the design is delivered as strategically as possible should not be overlooked. Making design solutions stack against potential revenue growth, and simultaneously having the confi-dence to substantially invest now for the longer term, will be key for future airports in the region looking to suc-ceed in achieving world-class status.

al Maktoum international airport (image courtesy of dubai airports)

CONStRUCtION BUSINESS NEWS ME MARCh 2016 39

COMMENT

tilation technology, according to Halton’s design manager Ajay Doliya, who says that the system stands au-tonomously and is not connected to the ductwork of a restaurant, thereby reducing the risk of a fire spreading into the restaurant.

The plug-in equipment, which eliminates food odours, can be used in malls and small outlets where ventila-tion is limited or non-existent.

However even restaurants that have the right equipment are at risk of fires if the owner or operator is negligent when it comes to maintenance.

Faulty alarm systems or gas leaks can result in huge losses for business owners, and are totally avoidable.

It is essential therefore to have an annual maintenance programme in place, in addition to equipment, de-sign, and procedures that are strictly in line with regulations.

KITCHEN fIRE SAfETY ON THE mENU fOR 2016

Fire safety in hospitality is under scrutiny in the region following some recent high profile incidents, but the right equipment and procedures can prevent disaster. Editor of Catering News ME Crystal Chesters writes

and regulations and our design goes to the Dubai Civil Defence Department to get approved and then it comes back for execu-tion,” he said.

Rather than design, most fires are caused by human error, Khai-rallah explains.

“The rules and regulations are very tough, but accidents may take place. It’s not because of not imple-menting the rules and regulations, it’s because sometimes the chef is over-heating something or the fire goes up in a way he can’t control.”

That said, purchasing the right fire-safety equipment can go some way to preventing accidents, such as that which took place at Shakespeare & Co at the Meadows Town Centre, Dubai last month. The fire started in the outlet’s kitchen, causing the mall to fill with smoke and the gym next door to be evacuated.

Kitchen fires such as this normally begin in cooking appliances, or in an oven hood, and can quickly spread into the restaurant and the rest of the building via the exhaust ductwork, according to information from Ansul, a brand of Tyco Fire Protection Products.

A new technology on the mar-ket to prevent these types cooking appliance-related fires is the Halton MobiChef, which uses new ven-

T he shocking swansong of 2015 was a high-profile fire at The Ad-dress Downtown Dubai which hit international

headlines on New Year’s Eve as it burned through the night right next door to Dubai’s iconic Burj Khalifa fireworks display.

Caused by an electrical short circuit on a spotlight, the fire spread surpris-ingly quickly due to cladding that did not meet safety requirements.

Fire safety in the hospitality industry has since been under scrutiny and just days after the blaze it was announced a new federal fire safety code would be released this month to fix liabilities during emergencies, and all build-ings in the UAE were to be inspected inside and out for potential hazards.

While a kitchen fire did not cause the Address Downtown blaze, this was the first rumour that emerged, since kitchen fires are most often the root cause of a larger incident.

However, according to kitchen fit-out firm MMG Group, one of Emaar’s 35 approved contractors, the hotel operator has had no restaurant-related fire incidents in recent history, and this is down to adherence to Dubai’s strict rules and regulations on fire safety.

“MMG has been with Emaar for 13 years now and we’ve done over 100 restaurants and not one accident has taken place, because we do things in the right way,” said MMG Group man-aging partner Ramzi Khairallah.

“We design the kitchen in a way that takes into consideration all the rules

MMG Group managing partner ramzi Khairallah

CONStRUCtION BUSINESS NEWS ME MARCh 201640


PROjECT REVIEW

Joint venture between Meydan Group and Sobha Group, Meydan Sobha, officially launched phase-three of Mo-hammed Bin Rashid Al Maktoum City – District One on at a press conference on 1 February 2016.

The upcoming master project is one of very few developments to offer low density villa communities in the heart of Dubai.

Chairperson of Meydan Group Saeed Humaid Al Tayer and chairperson of Sobha Group PNC Menon revealed that the phase-one and phase-two of District One were already sold out with a handover scheduled to begin mid-2016 and both phases are scheduled to be completed by 2017.

The development is said to be the “pinnacle of luxury”, according to Al Tayer. With a prime location of the inner city, along with a long waterfront, green landscaping, larger plots, and extended payment plans, the development would add another dimension to Dubai as a luxury capital.

Phase-three will have 270 units that include four to six-bedroom units to be handed over by 2018. There are over 9,000 construction workers currently working on the project, with 1,000 en-gaged in infrastructure works. Construc-tion of this phase will be carried out by the same main contractor of phase-one and two, MS Construction.

Meydan Sobha has also recruited a team of 14 master craftsmen from Ger-many to ensure the highest quality con-trol in all aspects of construction. The team includes specialists in construction, mechanical electrical, plumbing services, and infrastructure.

Menon stated: “We expect keen de-mand for the villas in Phase-three, as we are offering home owners bigger plots, a variety of new floor plans, as well as the option to include a basement.”

Another major milestone achieved

boardwalk. Once completed the lagoon is set to become the world’s largest man-made Crystal lagoon.

As the GCC real estate market slows down in 2016, Al Tayer stresses that market climate does not affect projects like District One. “Projects like this only come up once in a lifetime.”

District One is also situated next to the Meydan One in Mohammed Bin Rashid Al Maktoum City, which will include the world's tallest residential tower, the tallest observation deck, longest indoor ski slope and the largest dancing fountain.

in the laP of luxury

prior the announcement was the deliv-ery of the 8.4km District One Cycling and Running Track. While the contract for the Crystal Lagoon project has been awarded and construction is underway. The 7km Crystal Lagoon would create a manmade beachfront and a 14km

Construction Business News ME looks into progress on meydan Sobha’s 45 million sq.ft freehold project - District One

district one

District one Phase-three quicK facts

• Number of units: 217• Unique feature: New basement options

and larger plot sizes• Types of units: Four, five, and six

bedroom units• Handover: Q4 2018

Mediterranean style villa in district one


PROjECT REVIEW

Developer Carbon Holdings, a privately owned Egyptian petrochemical firm, revealed that construction and operation of the Tahrir Petrochemical project is expected to generate thousands of direct and indirect permanent and construction jobs in Egypt.

Ahmed El-Kharashy, managing direc-tor of business development at Carbon Holding, says that after completing the project and starting production Tahrir will increase Egyptian exports by 25-30%, a “positive contribution to Egypt’s economy”.

Once completed the $6.9bn Tahrir Petrochemicals project will be the largest petrochemical plant in Egypt and the largest naphtha cracker plant in the world, producing 1.5 million metric tonnes per year of ethylene that will then be further processed into polyethylene.

El-Kharashy says: “When complete, it will also produce 880,000 MTA of propylene, 250,000 MTA of butadiene, 350,000 MTA of benzene, 150,000 MTA of gas oil and 100,000 MTA of hexene -1.”

Financing for Tahrir is expected to come from the export credit agencies of the United States, Korea, Italy and the Overseas Private Investment Corpora-tion, as well as direct investors.

The project, constructed in Egypt’s Suez Special Economic Development Zone, is designed for domestic and international markets with raw materials received and products shipped from the Gulf of Suez. El-Kharashy explains that strategic location of the project at the south of the Suez Canal in Ain Sokhna ensures distribution flexibility on a cost competitive basis with other suppli-ers and the strategic access to mature

contractors has been a challenge for a mega-project like Tahrir. However, he believes such challenges will be addressed via the presence of a well renowned PMC such as Bechtel.

auTomaTion and rEliabiliTy TEchnologiEsCarbon Holdings selected Emerson Pro-cess Management to provide automation and reliability technologies and services for Tahrir on 16 January 2016.

The announcement was made at Emerson’s Middle East headquarters in Dubai where David Farr, chairperson and CEO of Emerson, met with Basil El-Baz, chairperson and CEO of Carbon Holdings, for the signing of a memo-randum of understanding regarding the contract award.

egyPt’s Power house

the tahrir Petrochemical Project will ProDuce:

markets of Europe and North America. It also has a freight cost advantage in sup-plying to both high growth Asian and MENA markets.

According to the manager, construc-tion of the project will begin end of 2016 with an expected construction workforce of 20,000 jobs. The five mil-lion square metre complex is expected to be ready for commissioning in 2019.

He suggests that 50,000 indirect jobs will be created during the construction phase along with the 3,000 engineers and technicians employed during its operational phase. In addition, it is an-ticipated that 25,000 indirect jobs will be created during the operational phase.

The main EPC contractor for the cracker is Germany’s Linde, while the Polyethylene units will be done by South Korea’s SK Engineering and Construction. Tecnimont and Archirodon have entered into an OSBL EPC contract covering the off-site and utilities aspects of the project.

El-Kharashy argues that coordination between multiple international EPC

Construction Business News ME speaks with the developers behind the world’s largest naphtha cracker plant, Tahrir petrochemical project, being built in Egypt

Ms prakash

• 1.5 million mta of ethylene

• 880,000 mta of propylene

• 250,000 mta of butadiene

• 350,000 mta of benzene

• 150,000 mta of gas oil

• 100,000 mta of hexene -1


emerson's Project

Farr, excited about the project, hopes that the petrochemical complex that can be a catalyst for economic develop-ment in Egypt.

Emerson’s initial scope of work is estimated at $150m, as the main automa-tion contractor it will apply best practice technologies and services to help ensure the facility is completed on time and within budget.

Engineering services provided will include designing the plant for opti-mum availability, and Emerson will also provide a robust reliability programme that includes consulting services, equip-ment health monitoring, and a reliability service centre for ongoing local support and expertise.

M.S. Prakash, senior manager of stra-tegic planning MEA at Emerson, states: “Our goal is for Tahrir to achieve top quartile project performance through eliminating unnecessary cost, reducing project complexity, and accommodating inevitable project changes.”

The project will install advanced technologies including control and shutdown systems, integrated process analyser system, integrated flow system, final control devices (control and on-off valves), field instrumentation, packaged equipment control systems, informa-tion technology systems, and advance

solutions (POMS, MOMS, QOMS, IOMS). Prakash adds: “We will also provide a reliability programme that covers consulting services, equipment health monitoring, and reliability services.”

These technology solutions will en-able the project to gather, collate, and deliver real-time critical information throughout the length and depth of the entire organisation. These seam-lessly integrate operations data with Enterprise Resource Planning (ERP) software and other business processes in a way that the right decision sup-port data will be provided to the right person, at the right time.

Prakash explains that Emerson was chosen for consistency in technical execution of controls and automation of the petrochemical facility and to avoid poor project performance. “In this proj-ect, Emerson will apply a transformative and comprehensive approach called project certainty.”

The manager says that this begins with early engagement during engi-neering and design studies to define project goals and high impact strategies to meet those goals. “Despite tradition-ally accounting for approximately 4% of a project investment, automation is revealing unique and repeatable ways to eliminate cost, reduce complexity and

Executives from Emerson, Carbon holdings and investbridge Capital sign the agreement

emerson has executed several multi-million dollar oil and gas, power, and fertiliser projects in egypt. the team has worked on a major ammonia producer in ain sukhna to automate a $550m ammonia plant, which now operates using emerson’s total automa-tion and control solutions. emerson has also modernised a thermal power station in the suez region with emerson's advanced control systems. this station now supplies power to more than four million residents.

accommodate late-stage project changes, beyond the automation discipline.

“For example, project certainty relies on the right design engineering strategy to eliminate centralised control system room requirements by 70 to 80%, and can eliminate piping in some applica-tions up to 50 to 60%. Additionally, tens of millions of dollars in capital spare parts can be eliminated through project-wide equipment reliability analysis.”

According to him project certainty significantly improves project schedule performance. “Revolutionary tech-nologies like Electronic Marshalling with CHARMs, and pervasive wire-less field instrumentation are helping project teams accommodate inevitable last-minute design changes without impacting schedule.”

In terms of best practices, Prakash pledges the Tahrir project team will work together to execute the project and develop an organisation to ensure the project is executed at the correct location at each phase and ensure a smooth transition between each phase.

“At regular intervals and at each project phase transition, a risk review will take place to ensure issues are identified, analysed, a correct response identified and the response actions closed out.”


PROjECT REVIEW

Manufacturer of photovoltaic modules, First Solar Saudi Arabia and Saudi-based Al Watania Agriculture Company an-nounced the completion of a pilot solar project on 26 January 2016. The pilot project, funded by both companies, used First Solar’s advanced thin film photovoltaic (PV) modules to create a 684kW PV plant that would sustainably power irrigation across a large farm in Saudi Arabia’s Al Jouf region.

The solar electricity generated, powers groundwater extraction and distribution across the 25,688 square metre site with-in the not-for-profit Al Watania Organic farm. The 319.21 square kilometres farm used to function through a conventional fuel engine that pumped water from 150 bore wells. The old engine used to have a mechanically driven water-pump from a diesel engine, which has now been replaced with an electric drive. Now unaided by conventional generators, the newly installed PV generator will pump over 3.1 million cubic metres of water per year.

The modules deployed at the site suit local environmental conditions offering a combination of a superior temperature coefficient and spectral performance.

“This project is an excellent example of the scalability and flexibility that solar PV offers. Easy-to-deploy and able to address very specific needs, innovative solar-powered solutions can address a wide range of energy challenges, as this pilot facility demonstrates,” says Dr Raed Bkayrat, vice president of business at First Solar Middle East.

“It was built in collaboration with Al Watania, who carried out the construc-tion of the plant. This was the first time they were working on a solar PV plant.”

Bkayrat says that the project was surprisingly quick to complete, with seven months on field and a total of a year’s work when counting in the busi-

the maintenance done on the engine has been completely eliminated. “The site did not look appealing before with bottles of diesel on the ground and oil mixed in the sand. It used to be pollut-ing in many ways, not just emissions from the engine, but in terms of noise as well.”

Now the plant looks better, doesn’t smell, and even works more efficiently.

While discussing the project’s unique-ness, Bkayrat highlights that solar pump-ing does exist in the region. In the GCC, diesel engines tend to be more common as it is very affordable. Though Bkayrat says that subsidies are being revised and will slowly be removed, making diesel engines impractical in the future.

He says: “In the Middle East, there are several regions that use solar pumping particularly in Egypt. However, the solar project in Al Watania is unique because of its size. There hasn’t been any solar assisted water pumping application in the region, that I know of, that is bigger than 400KW and this project is in the range of 600-700KW.”

sights on solar

ness development. First Solar provided the engineering, supervision, logistics, procurement, support and construction training on the ground.

He says: “Most of it the time was spent training Al Watania’s workers, which was a bit challenging as they were more or less farmers. However, we were more than happy to do it and as a result they have developed experience working with PV modules.”

One of major advantages of switching from diesel to solar, Bkayrat says, is that

Dr Raed Bkayrat, vice president of business at first Solar middle East, discusses the company’s pilot solar-powered irrigation project in Saudi Arabia

raed bkayrat

Endorsement Partners

Leaders In Architecture Speakers

Abdullah Al AbdouliManaging Director, Al Marjan

Anthony MoselliePrincipal, Kohn Pedersen Fox

Baharash BagherianDesigner & Founder,

Baharash Architecture

Carson ShearonPrincipal, CannonDesign

Harold ThompsonSenior Vice President,

Callison RTKL

Hayssam El-MasriPresident and co-founder,

Sharjah Oasis Real Estate Development

Ian ApsleyMain Board Director,

Broadway Malyan

Ibrahim Mohamed JaidahCEO/ Chief Architect,

Arab Engineering Bureau

Jamil JadallahManaging Director,

National Engineering Bureau

Jan MattssonCEO, Sweco Architects

Jeffrey BrandPrincipal and Board Director,

Perkins Eastman

Jo PalmaPrincipal and Design Director,

Perkins+Will

Meshal Al ShamariDirector,

Qatar Green Building Council

Michael FowlerManaging Director –

Middle East, Aedas

Mohamed Al AssamFounder and Leader,

Dewan Architects

Muhammad Binghatti AljboriCEO & Head of Architecture,

Binghatti Developers

Omar DelawarChief Projects Officer,

Meraas Holding

Predeep K. MenonCEO, Middle East

North Africa, RSP Architects

Sameh MuhtadiCEO, Bloom Holding

Simon ScottHead of International Business,

Leslie Jones Architecture

Thomas BehrManaging Director, SOM

Thomas LuckingManagement Director,

Gerber Archtekten International Gmbh

Yahya JanVice President &

Design Director, NORR

Antonio Villanueva PeñalverHead of Sustainability, IDOM

Mark StreetzSenior Vice President &Managing Principal, HOK

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Q&A

In terms of exports, could you tell us more about some of Brazil’s interna-tional target markets for construction goods and machinery?The top three importers of Brazilian machinery include Egypt at $63.82m; the Kingdom of Saudi Arabia, $56.23m; and the UAE, $50.97m.

The most traded commodity from Brazil to the Arab region is self-pro-pelled bulldozers and angledozers, track laying at $226m, followed by self-propelled front-end shovel loaders at $44.78m. Other top-selling products include graders and levellers, com-pressors for refrigerating equipment, and compression-ignition internal comb piston engines.

Has the drop in oil price in the GCC affected Brazil/Arab trade? Over the past years, the GCC has been diversifying its economy to lower its dependence on oil exports. Such a move, however, takes time and most of the GCC countries still rely on petrodollars to stimulate and support public services, projects and initiatives. Thanks to the large amount of dollar reserves accumulated over time, the effects of the oil price slump have not been severe.

Nonetheless, the region has taken necessary measures to counter the im-pact of the oil price drop, with some countries reducing their public expen-ditures especially their social assis-tance to expatriates. However it must be considered that despite the sluggish oil sector and lower tax revenues, the private sector is keeping up just fine.

What makes Brazilian construction brands stand out compared to its competitors? The Brazilian brands are known

high premium on its relations with international companies, other markets and foreign governments. This is the strength of Brazil compared to other major competitors across the globe. One of our key roles at the ABCC is to sustain and reinforce Arab-Brazilian ties further by providing assistance, know-how, and business contacts.

What strategies do you have in place to increase international trade in con-struction equipment and materials? The ABCC helps facilitate trade between Arab and Brazilian industry players by keeping them updated about biddings and assisting firms operating in the South American

brazilian allies

for their high-quality materials and products that address market needs. This makes them unique and highly in-demand worldwide.

Some of the leading Brazilian con-struction companies are Odrebrechet, Andrade Gutierres, Queirós Galvão, OAS, Camargo Correia, Direcional, and MRV. These firms have been operating in the international market for more than 50 years now.

How does Brazil plan to compete with big global competitors like the US or Europe?Beyond providing high-quality products and services at competitive prices, the Arab market also puts a

Trade between Arab nations and Brazil has been relatively stable over recent years. Dr michel Alaby, secretary general and CEO of Arab-Brazilian Chamber of Commerce (ABCC), discusses construction trade relations between Arabs and Brazilians

dr Michel alaby


toP three imPorters of brazilian machinery

country to touch base with potential Arab clients.

Which regions other than the GCC have been working extensively with Brazil?Brazilian companies such as Ode-brecht, Andrade Gutierre, OAS, and Queiroz Galvão – all of which have a strong foothold in Djibouti, Libya, and Iraq – have successfully established their market presence in the whole of the Arab World.

How could the GCC benefit from increasing construction trade with Brazil?Opportunities are vibrant in the sec-tor especially in the midst of ongoing construction of major bridges, power infrastructures, dams, and other large-scale projects. For example, a Brazilian company has entered into a joint venture with well-established Emirati company Engeprot. With branches in Saudi Arabia, Engreprot is behind major projects such as

shopping malls, hotels, and a garage for UAE metro stations.

Do you think the GCC should pro-mote international trade with emerg-ing markets? Can trade shows such as the Big 5 Show held regionally help in boosting international trade?In my opinion, I think the GCC should establish international trade with emerging markets capable of provid-ing excellent construction materials and other related services. And yes, The Big 5 Show helps improve trade relations between the GCC countries and Brazil, among others.

How do you see the Brazilian con-struction market developing in the next 10 years?The Brazilian construction market has been active over the past 10 years thanks to the World Cup and the Olympic games. The potential for more substantial growth is huge espe-cially with the continuously increasing infrastructure projects.

ongoing construction of a road in sao paulo, brazil

Egypt

$63.82m

Saudi Arabia

$56.23m

UAE

$50.97m


maKing it big in sauDi

EVENT PREVIEW

Despite dropping oil prices, Saudi Arabia continues to be one of the most lucrative construction markets, a fact recognised by both international and regional players. According to Deloitte’s 2015 Powers of Construction report, the country is once again the GCC’s largest construction hub with more than $1.2tr worth of projects planned or underway.

In the last couple of years, the Saudi government has been under the spot-light after making massive budget cuts in response to the oil prices dropping. It released its spending plans for 2016 on 28 December 2015 with a $54bn commitment, spending on key social infrastructure projects.

Nathan Waugh, event director at dmg events, looks forward to address all the issues the Kingdom is currently facing and showcase the best suppliers to take the nation’s construction indus-try forward at The Big 5 Saudi 2016. Saudi Arabia’s biggest construction tradeshow will run from 7 to 10 March 2016 at the Jeddah Centre for Forums and Events. Now in its sixth year, The Big 5 brings together international and regional construction suppliers and architects, engineers, contractors, and developers. The Big 5 Saudi has other popular sister events that run across the region in countries including the UAE, Kuwait, and India.

In Saudi Arabia, Waugh argues that the reality of the budget cuts is not really felt in the market as there are still many ongoing projects underway. “The budget cuts have had minimal impact on mega projects, they are still

new ways of doing business. “They can also broaden their knowledge, making them a competitive force in their challenging work conditions. Finding new ways is a great reason to attend The Big 5 Saudi 2016.”

Waugh observes that the Saudi market is even more inclined towards learning and development than other markets like the UAE.

From the past three years, dmg events have been deliberately improving and increasing its educational programmes offered at The Big 5 shows. Though Waugh says the first priority has always been to set the stage for AEC profession-als to be introduced to innovative and cost-cutting products, the second has recently become the educational facili-ties that come along with it.

He says: “In recent years, we have found that many people responded very well to having access interna-tional techniques of learning and new ways of doing things.”

This, he says, gives people more reason to visit the event, and more importantly “stay longer” at the event.

He explains: “In previous years peo-ple would stay a day to see a product, but now they stay two to three days for educational wealth we provide.”

This year The Big 5 Saudi will be hosting more focussed workshops that would offer visitors extra value for visit-ing the show. Waugh adds that this year, for the first time, dmg has organised a site visit to King Abdullah Economic City, which is a megaproject in 150km north of Jeddah. The visitors can visit the site, which once completed will be

in the pipeline and very much set with the Saudi government. Regardless of any short term impact, these projects have a long-term plan that is of pro-gressing and moving along as normal.”

Waugh presumes that the budget cuts and slowdown would probably have a positive impact on The Big 5 Saudi this year. He says that this would give added reason for construc-tion professionals to find new prod-ucts and services that would cut the cost of construction projects, or find

Nathan Waugh, event director at dmg events, discusses how attending tradeshows during a slowdown could be beneficial

nathan Waugh


larger than the size of Washington D.C., and meet the people involved in the development of the project.

With pressure on budgets and time of project delivery, Saudi Arabia has been a tough market to crack into. Waugh says The Big 5 show in Dubai, in comparison with The Big 5 Saudi, is relatively bigger and more accessible, but that does not make it more important. “The Big 5 Dubai will always be a sort of mother event, but the truth is Saudi Arabia is just as important if not more.”

In terms of popularity and interest of visitors and exhibitors, many who exhibit and visit Dubai also exhibit and visit Saudi. Waugh says: “This is because the Saudi market is tough to get into and there is a need to be there in person.”

The show has thus been growing with more and more visitors and ex-hibitors pouring in every year, despite visa challenges. He reveals: “This year’s show, we are expecting 500 ex-hibitors from 37 countries, according to our last count. While the number of visitors for four days will be 15,000.”

Waugh observes that at this year’s show will be a continuation of trends from last year. “Sustainability remains to be a key theme in Saudi Arabia.”

Observing the industry, Waugh admits that sustainability has been a top consideration in most of the new projects.

This year, the show would try to help contractors and developers navi-gate their way through sustainability issues, and help their projects meet sustainability criteria.

Exhibitors at the big 5 saudi 2015

Apart from the sustainability, an-other key theme the show would be highlighting in its four day exhibition would be an extended focus in learn-ing and development. According to the event director, the certified training provided at the event attracts the visi-tors to spend more than just a day at the event. “It is all about improving your knowledge back and learning, which ultimately helps you cope with upcoming challenges in the market.”

The show will provide comprehen-sive educational programmes with 27 of the free-to-attend workshops earn-ing participants CPD certification.

There will also be construction seminar series that will discuss the future of Jeddah's construction sector alongside the discussion of critical business topics across the Kingdom.


NEWS

RetrofitTechUAE14-15 March 2016Park HyattRetrofitting of existing buildings has been gaining popular-ity in the region as green standards climb the governments’ agenda. RetrofitTech UAE 2016 will discuss upcoming proj-ects, the opportunities and give an update on UAE’s retrofit programme. The event will also identify future retrofit oppor-tunities the private and public sector, as well as showcase the most suitable materials and solutions to achieve the desired reduction in energy demand and increase in ROI.Highly topical issues to be discussed include regulatory updates, financing and legal framework for retrofitting pro-grammes, new project opportunities, and best practices to maximise cost savings and energy efficiency.

HealthFacilitiesDesignandDevelopmentQatar28-30 March 2016InterContinental DohaAs the population of Qatar continues to rapidly grow, it is critical that Qatar’s health facility construction experts devel-op facilities which are designed to effectively meet demand to the highest standard. The second Health Facilities Design and Development conference aims to address the main challenges surrounding health design and development, and illustrate innovative solutions to develop Qatar’s healthcare infrastructure efficiently.

Drawing on the experience of healthcare providers, archi-tects, structural engineers, and construction specialists, this event will provide strategies required to ensure successful project development and completion

TheBigShowOman28-31 March 2016Oman International Exhibition CenterThe Builders International Gathering (BIG) Show is an annual international exhibition that caters to the building and construction industry in Oman, the Middle East and global markets. It features an extensive range of the latest building materials, construction equipment, wood machin-ery, interior furnishings and other products, equipment and technology for building and construction operations.

DIARy DATES

SAVE THE DATE

The annual exhibition provides a platform for local and international companies to take advantage of major op-portunities in the industry as well as to learn about the key projects and developments in Oman.

CityscapeAbuDhabi12 – 14 April 2016Abu Dhabi National Exhibition Centre, UAEThis April, Cityscape Abu Dhabi will exhibit products and services from various sectors including banking, retail, hotel, leisure, infrastructure and design. The national ex-hibition will unite real estate professionals from across the region to meet local government authorities, developers, consultants, architects, designers and investors.

ProjectQatar9-12 May 2016Doha Exhibition and Convention CenterAfter 12 editions and over 2000 exhibitors in its last show, Project Qatar is back as one of the country’s leading con-struction events with many more exhibitors.

The event provides a platform to view the latest equip-ment and services from the construction industry, develop international relationships and generate new business op-portunities. Exhibitors and visitors benefit from fast market penetration into Qatar’s lucrative construction market, and the opportunity to generate new business opportunities with companies of all sizes.

SmartSkyscrapersSummit16 – 17 May 2016Sofitel Dubai the Palm Resort and Spa, UAEThe event will attract over 300 senior architects, engi-neers, policymakers, developers, contractors and building managers from across the MENA region. Smart Skyscrapers Summit offers a platform for networking and exchanging information required for building and maintaining world-class skyscrapers in the Middle East. The event will include presentations and case studies from local and international experts. It will also showcase some of the most innovative building technologies, design principles and solutions from across the globe.

Construction Business News ME picks the latest and most sought-after exhibitions, conferences and seminars coming up in the construction industry

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SUPPLIER CORNER

How important is Leadership in Energy and Environmental Design (LEED) certification for Mapei? LEED certification, granted by the Green Building Certification Insti-tute (GBCI), is a measure of the quality of suppliers and an indica-tion of the efforts of that company to improve sustainability, hence LEED certification is of paramount importance for our company.

Do you think buyers in the market are actively looking for sustainable products? Is there a demand for it?Yes, buyers are aware of sustainability requirements and there is a demand for these types of products with gov-ernmental and related authorities man-dating sustainable building standards.

What sets your products apart from the rest?Mapei has a worldwide track record dating back to 1937 in Milan, Italy. Our global brand is very well respect-ed and is perceived to be green and sustainable, and at the higher end of quality.

How important is it to invest in sustainable raw materials in this day and age?Sustainable raw materials are the back-bone of finished products. It is also mandatory in making the final product meet green initiatives such as low volatile organic compounds (VOCs). The aftereffect of using sustainable raw materials is best illustrated in healthcare facilities such as hospitals, healthcare centres and clinics where indoor air quality is of paramount importance.

Does the decisions made at last year’s COP21 affect construction suppliers like Mapei? If yes, how does it change things?We applaud the decisions made last year at COP21 as extremely positive.

leeDing the way

Have you found that being LEED-certified improves brand credibility and sales?The chairperson and chief executive of Mapei, Dr Giorgio Squinzi, cares pas-sionately about the environment. This passion and commitment are conveyed to and respected by our 7500 employ-ees across the world, hence certification is not about credibility nor improved sales, it is about the environment and our efforts to improve and sustain it.

Stefano Iannacone, managing director of mapei, discusses why the company has made sustainability and LEED certification its top priority

stefano iannacone

Mapei products in local factory

Mapei factory in uaEMapei has been supporting global initiatives on sustainability since 2011 when the Group got involved in the USGBC and their green initiatives. Thus, COP21 initiatives strengthen our efforts in the direction of ‘clean manufacturing’ and green, sustainable product range.

MANUFACTURINGQUALITY DOORS, KITCHENS & INTERIOR FIT-OUT

MANUFACTURING TECHNOLOGIES

Dubai, UAETel: +971 4 884 1650Email: [email protected]

made in

UAEHall 2 - Stand D807-10 March 2016Jeddah Centre forForums & Events


Since the inception of computer-aided design (CAD) and geographi-cal information systems (GIS), users have been

adopting technology to better deal with infrastructure projects around the world.

Meanwhile with the rise of build-ing information modelling (BIM) has ensured better team collaboration, improved quality of infrastructure, and the ability to design, build, and operate more efficiently.

BIM is not just about the design or the models themselves, it is all-inclu-sive of design through to operations and maintenance of assets, and has been eloquently described by UK-based consultancy Mott MacDonald as “a coordinated set of processes, sup-ported by technology, that adds value through creating, managing and shar-ing the properties of an asset through-out its lifecycle.” By accepting that it is a process, we should accept that the technology is only one component.

Another thing to consider is the people and skills needed for such an integration. GIS professionals need a broad range of management, business, and technical skills. BIM professionals, on the other hand, are evolving and are often technically savvy and easily adopt new sets of technology in innovative ways.

The difficult part is integrating the differing technologies that have so far operated in different environments. It is also imperative that software ven-dors should work on the exchange of data between varying systems, such as i-models. Given that BIM is not a static model created for one purpose, it is important to see the value of how these technologies can comple-ment one another.

For example, BIM models should be

EDITOR'S PICK

the geo challengeAidan mercer, senior industry marketer at Bentley Systems, analyses the challenges of integrating geospatial technology with BIm

tion Classes (IFC) have provided a solid foundation and offers great promise of interoperability for the AEC community. IFC schema has developed new geographic elements within IFC itself and ensured, with the help of new computing powers, that 3D GIS is now possible. This opens up a whole new potential with 3D analysis and simulation for energy performance, urban planning and development and a new wave of cadastral mapping and registration.

Ultimately, any meaningful attempt to integrate BIM and GIS requires a systematic mapping of conflicting se-mantic data structures. BIM has new and differing levels of structure (BIM Level 1, 2, 3) and is by nature much richer in detail than a GIS database, but both BIM and GIS will require network capabilities in order to share information. This integration also requires consistent collaboration be-tween vendors like Bentley’s suite of products that interoperate with other vendors. Huge advancements show this integration between BIM and GIS will happen, but organisations should be careful when venturing into such new territory.

ascribed throughout with geospatial information in order to gain additional value. For example, the topology of a building is required to spatially understand the layout and attributes of that building, thus giving a heightened importance to this integration.

This growing importance of having a geo-context to the AEC lifecycle is becoming more evident and the demands on various communities are growing at a rapid rate. But the issues of integration raise some significant questions due to a variety of factors.

Fundamentally speaking, existing CAD and GIS platforms have been developed independently with dif-ferent purposes. BIM data is typically more standardised in structure, more highly structured and is file based (hence the need for i-models). Given that CAD and GIS platforms have been created for differing purposes, one key word is needed to deal with this integration. That word is interop-erability. But, as a word of caution, this means being interoperable with technology and each other.

Defining a standard format is fundamental to any successful integration plan. Industry Founda-

bentley map for improving 3d City Gis

www.sulb.com

UAE Qatar

Documents

Construction Business News ME - March 2016