May 2014

098MAY 2014

Bashar Abou-Mayaleh on why pre-cast is the future

A HARD ACT TOFOLLOW

ALSO INSIDE THE QATAR CONUNDRUMGREEN FUNDINGMEP LEARNS FASTKEMPINSKI – THE WAVE

Raz IslamPublishing [email protected]: +971 50 451 8213

Michael StansfieldCommercial Director [email protected]: +971 55 150 3849

Co-located with

At the 2014 Construction Machinery Show we sold 70 units and 100 more units are under discussion. We have delivered a positive message to our existing clients, our competitors, and grabbed new clients. I think gaining such an appreciation from all members in the construction equipment sector is a great honour and will encourage us to work very hard to keep the same level of style, image, and standards.”

Al-Qahtani & SonsKhaled El Shatoury, Managing Director

This year the CM Show team delivered an exhibition Saudi deserves. For years, we have seen a vision in this Show and this year the vision was achieved. We wanted quality traffic and we saw equipment and company owners; and we were able to offer some promotions to entice sales.I saw an increase in our sales immediately. Our principles, Doosan and Everdigm, really enjoyed themselves. We anticipate the upcoming years to be even better.”

Saudi Diesel EquipmentAhmed Alkooheji, Marketing Manager

The Construction Machinery Show was perfect from an awareness point of view.We explained Roots Group Arabia’scapability of covering the construction industry with all of its needs and requirements. The attendance was good especially during weekdays and towards the end of the exhibition. See you next year.”

Roots Group ArabiaAbdulaziz Felemban, Brand Manager

CMME SHOW 2015v3.indd 1 5/4/14 2:49 PM

Raz IslamPublishing [email protected]: +971 50 451 8213

Michael StansfieldCommercial Director [email protected]: +971 55 150 3849

Co-located with

At the 2014 Construction Machinery Show we sold 70 units and 100 more units are under discussion. We have delivered a positive message to our existing clients, our competitors, and grabbed new clients. I think gaining such an appreciation from all members in the construction equipment sector is a great honour and will encourage us to work very hard to keep the same level of style, image, and standards.”

Al-Qahtani & SonsKhaled El Shatoury, Managing Director

This year the CM Show team delivered an exhibition Saudi deserves. For years, we have seen a vision in this Show and this year the vision was achieved. We wanted quality traffic and we saw equipment and company owners; and we were able to offer some promotions to entice sales.I saw an increase in our sales immediately. Our principles, Doosan and Everdigm, really enjoyed themselves. We anticipate the upcoming years to be even better.”

Saudi Diesel EquipmentAhmed Alkooheji, Marketing Manager

The Construction Machinery Show was perfect from an awareness point of view.We explained Roots Group Arabia’scapability of covering the construction industry with all of its needs and requirements. The attendance was good especially during weekdays and towards the end of the exhibition. See you next year.”

Roots Group ArabiaAbdulaziz Felemban, Brand Manager

CMME SHOW 2015v3.indd 1 5/4/14 2:49 PM

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CONTENTS

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MAY 2014

PAGE 22Big Project ME visits the construction site of Kempinski – The Wave in Muscat, Oman.

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05 THE BIG PICTURE

DUBAI CREEK BIDS FOR UN HERITAGE SITE STATUS

Dubai Municipality to push for landmark site to be recognised by UN

16 IN PROFILE

HARD ACT TO FOLLOW

Bashar Abou-Mayaleh, managing director of Hard Precast Building

Solutions tells Big Project ME that the future will be precast

22 SITE VISIT: KEMPINSKI, THE WAVE – MUSCAT

CATCHING THE WAVE

Big Project ME takes a tour of Oman’s largest hospitality project

28 INDUSTRY FOCUS

OPPORTUNITY KNOCKS

Is Qatar Shell is about to open the door for local contractors?

32 MARKET FOCUS: QATAR

THE QATAR CONUNDRUM

How will Qatar’s population growth impact its construction market?

40 SPECIAL FEATURE: GREEN FUNDING

PAYING FOR SUSTAINABILITY

How can the UAE’s green economy be funded for the future?

44 SPECIAL FEATURE: GREEN CONTRACTORSVENTIVELY

CAN CONTRACTORS BUILD GREEN?

Big Project ME examines how contractors can contribute towards the

green building aspirations of the region

48 MEP FOCUS

ON A LEARNING CURVE

How the MEP industry is ready to push ahead thanks to the introduction

of the green building codes

60 TENDERS

TOP TENDERS

Big Project ME lists the region’s biggest construction tenders for May

74 EVENT REVIEW BIG 5 SAUDI

CITYSCAPE ABU DHABI

Big Project ME reviews the 2014 edition of Cityscape Abu Dhabi

76 CONSTRUCTIVE CRITICISM

COUNCIL-CREATED COMPLICATIONS

Gavin Davids says that recent comments by Fahd Al-Hammadi may have

an incredibly damaging effect for the Saudi construction industry

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EDITOR’S COMMENT BIGPROJECTME.COM

Stephen WhiteGroup Editor

Landlords cashing inGROUP CHAIRMAN AND FOUNDER DOMINIC DE SOUSA

GROUP CEO NADEEM HOOD

GROUP COO GINA O’HARA

PUBLISHING DIRECTOR RAZ ISLAM [email protected] +971 4 375 5471

EDITORIAL DIRECTOR VIJAYA CHERIAN [email protected] +971 4 375 5472 EDITORIAL

GROUP EDITOR STEPHEN [email protected] +971 52 755 5184

DEPUTY EDITOR GAVIN [email protected] +971 4 375 5480

ASSISTANT EDITOR NEHA [email protected]

ADVERTISING

COMMERCIAL DIRECTOR MICHAEL [email protected] +971 4 375 5497

SENIOR SALES MANAGER YASIN [email protected] +971 4 375 5496

SENIOR SALES MANAGER NITESH [email protected] +971 4 375 5483

MARKETING

MARKETING MANAGER LISA [email protected] +971 4 375 5498

MARKETING ASSISTANT BARBARA [email protected] +971 4 375 5499

DESIGN

ART DIRECTOR SIMON COBON CIRCULATION & PRODUCTION

CIRCULATION AND DISTRIBUTION MANAGERROCHELLE ALMEIDA [email protected] +971 4 368 1670

DATABASE AND CIRCULATION MANAGERRAJEESH [email protected] +971 4 440 9147

PRODUCTION MANAGER JAMES P [email protected] +971 4 440 9146

DIGITAL

DIGITAL SERVICES MANAGER TRISTAN TROY MAAGMA

PUBLISHED BY

Registered at IMPZPO Box 13700Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com

PRINTED BY

Printwell Printing Press LLC

© Copyright 2014 CPIAll rights reserved

While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

A colleague has opted to move out of their property in the JLT area of Dubai after their landlord took the opportunity to raise their rent by 30%. They sensibly opted for a PO Box and more room for less money on the city’s outskirts. There was a lot of speculation on the inflation of rents after the awarding of World Expo 2020 with many reliable observers predicting that the Expo effect was already priced into the market. This may have been an optimistic assumption.

The data is still raw and reports in the media largely anecdotal but we could see a substantial hike in prices when the year-on-year figures come in November. A Gulf News report even claimed that some rents have already risen by as much as 100% in Dubai and Sharjah. There are many advantages of the tax-free haven that has been created in the UAE. It has helped create an environment where individuals and organisations can thrive unfettered by the financial restrictions in place in other areas. However there are some downsides where its absence does create problems when it comes to governments being able to encourage and stimulate change. This is particularly true when it comes to building retrofitting.

Just as landlords are cashing in, the construction industry is being encouraged or asked to pursue greener ways to build. Few would argue against constructing laster longing and cheaper running buildings but what about encouraging the owners of the vast majority of properties to reduce their energy consumption?

I sat in on a discussion last year on whether the government should provide incentives to aid building owners who are prepared to re-fit their properties to make them energy efficient and ironically perhaps, it got quite heated. Quite rightly it was argued that they are already in a fiscally comfortable environment.

Our look at sustainability this month’s issue suggest those incentives may instead come from within the banking sector. The question of being green is one that property owners should start preparing themselves to answer.

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7MAY 2014 MID

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THE BIGGEST PICTURE

BIG PROJECT ME TRAVELS TO OMAN TO INVESTIGATE PROGRESS ON THE KEMPINSKI AT THE WAVE – PAGE 22

‘BUSINESS NOT ONLY IN SHOPPING MALLS’, DUBAI MUNICIPALITY OFFICIAL SAYS

URBANISATION IN DUBAI will not be

limited to the zones created by the Expo

planning committee, a senior government

figure has said.

Najib Mohammed Saleh, head of the

Planning and Research section at Dubai

Municipality’s Planning Department,

spoke exclusively to Big Project ME and

said that development would continue

to be undertaken in the emirate if

population growth rates rise above and

beyond expected targets.

While addressing a conference in

Dubai, Saleh highlighted the emirate’s

growth from its earliest construction

beginnings in Al Fahidi, Al Ras and

Shindaga areas to its current landmarks,

such as Palm Jumeirah.

“Al Fahidi remains the most important

trading hub in the city,” Saleh said. “Even

today, most trading activities take place

there. Business is not only in the shopping

LANDMARK DUBAI CREEK TO BE REGISTERED AS UN HERITAGE SITE

malls. We are in talks with the UN to

register the creekside in Old Dubai as a

heritage site,” Saleh revealed, hinting at

major infrastructural revamps that might

be undertaken at and around Al Seef

Creek and Fahidi Souq in Bur Dubai.

Additionally, Saleh claimed

development would continue around

Dubai’s other zones even after the Expo.

“The committee (preparing for the

Expo 2020) adopted the medium growth

plan scenario, where we expect the total

population to reach around 2.8mn,”

said Saleh. “In the case of high growth

numbers, the total urban area can extend

up to 3.4ha.

“Our current development plans don’t

go beyond Dubai Outer Bypass Road, but

that doesn’t mean the city won’t grow.

Land will continue to be available for

development, but only after 2020,” the

government official revealed.

Speaking of the increased construction

capacities in the emirate, Saleh said

upcoming projects, such as hotels and

residential buildings would cover the

existing demand for them in the city. “We

have statistics from the tourism board that

show we’re still short on rooms. This is

easily noticeable when major events are

held in the country.

“There is definitely scope for three

and four-star hotels to be developed as

extensively in ‘New Dubai’ as they are in

‘Old Dubai’,” Saleh added.

One such project is Aladdin City,

which is in its first phase of construction.

Municipality officials have confirmed

that the project is being built outside the

restricted zone and will not have any

impact on the creek’s bid.

It will include commercial offices

and hotels in three towers spread over a

distance of 450 metres.

ALADDIN CITYn Number

of towers: 3

n Total Built Up Area: 10,000sqm

n Highest tower: 34 stories

n Parking slots: 900

n Space between towers: 450m

n Deadline: Unspecified

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THE BIG PICTURE BIGPROJECTME.COM

MAKKAH MEGA TRAIN PROJECT TO BOOST LOCAL CONSTRUCTION BY $50BNProject to include 182km of rail lines and 88 train stations

Makkah’s mega train project is expected to boost construction activity by at least $50 billion in the city and its surrounding areas, the project’s director has predicted.

Ali Abdul Fattah, technical director of the Makkah public transport company, said that construction and operation of the project would be completed within 10 years and would cost nearly $39 billion.

It will eventually include a total of 182km of rail lines, 88 train stations

and a large number of public buses, he added.

According to a report by a local Arabic newspaper the project would generate a total revenue of $78.4 billion.

“The project will contribute to expanding economic activity in the construction and operation sector by $49.78 billion,” he explained.

Fattah added that the project would initially involve 114km of rail lines and 62 train stations by 2029 and that the project would be increased to 182km and 88 stations.

“The first phase of the metro project is scheduled to be completed after three years and the network will include 44 km of lines and 22 stations,” the technical director concluded.

BIG PROJECT MIDDLE EAST LOOKS AT HOW WE CAN SOLVE THE QATAR MARKET CONUNDRUM – PAGE 32

182SAUDI ARABIAN EMPLOYERS OBLIGED TO PAY FOR TREATMENT OF WORK-RELATED INJURIESSaudi lawyer says payments for employees’ treatment are in line with Article 33 of KSA’s labour law

SAUDI ARABIAN EMPLOYERS are legally bound

to pay for the treatment of their employees for any

injuries sustained at work.

“The labour law provision stipulates that

injuries be classified within categories according

to a social insurance system,” Bandar Al Amoudi,

a Saudi lawyer said, in a report by Arab News.

“Vocational illnesses are classified within a

work injury system and patient history will begin

from the first medical citation of the illness.”

According to Article 33 of the country’s

labour law, employers are obliged to bear all

expenses that arise from work-related injuries,

including compensatory damages. Paid directly

or otherwise, the total remuneration includes

hospital stay, medical tests and analyses, X-rays

and compensatory equipment and transportation

to the point of treatment.

“Employers will also be obliged to pay

expenses for fatal cases resulting from work-

related injuries, in addition to compensation,” Al

Amoudi added.

Labour safety has assumed great importance

in the GCC construction sector. Qatar has been

criticised for its treatment of construction

workers while on-site labour safety in the UAE

has been on a marked decline despite numerous

workshops organised to educate workers.

KMS

LENGTH OF RAIL LINES TO BE LAID DOWN IN MAKKAH

DUBAI INTERNATIONAL AIRPORT FACES 80 DAY UPGRADE

Al Maktoum International Airport to see increased flight activity during this period

AN 80-DAY LONG upgrade project, focused

on enhancing current capacities and future

expansions, has been planned for the Dubai

International Airport, the aviation authority has

announced.

The construction works at Dubai International

Airport will result in increased flight activity at

the new Al Maktoum International Airport, Paul

Griffiths, CEO of Dubai Airports, explained.

“We have planned this project to optimise

capacity while protecting service levels,” he said.

The upgrade work will be split into two

phases, with the first leg of the project, held

between May 1 and July 31 2014, involving the

upgrade of runway lighting and construction

of additional taxiways and rapid exits on the

southern runway.

Phase two will start on May 31, under which

the 4,000m long northern runway, approaching

the end of its design life, will be resurfaced.

The second phase is expected to be completed

by July 20, 2014.

WORK SAFETYSaudi employers now have more responsibility for their workers.

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THE BIG PICTURE

MAJORITY OF MADINAH PROJECTS IN DANGER OF FALLING BEHIND

Government monitoring programme finds that 355 projects are at risk of falling behind schedule

Only 121 out of 656 development projects in the Saudi Arabian city of Madinah are proceeding according to schedule, a government backed project monitoring scheme has found.

Ada (performance) is an online government programme to monitor development projects. It was launched earlier this month.

Local paper, Al Madinah, reported that 176 projects had been delayed, while work on four others had completely stopped. Another 355 are at risk of falling behind.

Contractors blame a shortage of workers for the delays in completing their projects.

FOREIGN INVESTORS EYE OMAN LOGISTICS SECTOR

Leading international companies keen on working with Oman government bodies

OVER A DOZEN foreign companies have

expressed interest in collaborating with the Oman

Ministry of Transport and Communications for

its planned projects worth almost $12 billion in

the rail, ports, pipeline and airport sectors.

Besides this $6 billion-worth railway network

expanding over 2,250km, several other logistics

and transport projects are being undertaken

LOGISTICAL INTERESTOman’s project is attracting interest from a number of foreign firms.

in the country, such as the Duqm, Salalah and

Sohar ports, the expansion of Muscat and Salalah

International Airport, construction of airports in

Adam, Ras Al Hadd, Sohar and Duqm.

Companies such as Global Logistic and

Supply Co. from Canada, Japanese Fujimoto

Supply Railway and Supply Chain, and India’s

Bharat Transport & Logistics Consultancy are also

interested in the projects.

“Oman is positioning itself in a good way to

become a major supply chain and logistics hub

in the Gulf, partly because of its strategic location

and given the size of the country,” Suresh Das,

senior project consultant at Bharat Transport &

Logistics Consultancy told local daily Times of

Oman. Other projects in the country include the

construction of a logistic and supply chain in

Barka, from the capital Batinah, and linked to the

Al Sharqiyah region.

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10 MAY 2014MID

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THE BIG PICTURE BIGPROJECTME.COM

BIG PROJECT ME LOOKS AT HOW THE MEP INDUSTRY IS AHEAD OF THE CURVE WITH GREEN BUILDING – PAGE 48

HOLCIM BUYS OUT LAFARGE TO CREATE WORLD’S LARGEST CEMENT MAKERNew entity has combined sales of $43.89 billion and is worth just under $60 billion

Switzerland’s Holcim has announced an all-share deal to buy France’s Lafarge, creating the world’s largest cement maker with combined sales of $43.89 billion.

According to a Reuters report, the partners billed the deal as a merger of equals under which Lafarge shareholders will receive one Holcim share for every Lafarge share held. The combined group will be based in Switzerland, and listed in Zurich and Paris. The new entity is worth just under $60 billion, and will see

53% percent shareholder control for Holcim and 47% for Lafarge, the companies said in a joint website statement.

The deal is the cement industry’s biggest-ever tie up, and would help the companies slash costs, trim debt and better cope with rising energy prices, increased competition and falling demand, factors that have hampered the industry since the 2008 economic crisis.

Shares in the cement producer rose 4% at the opening of trading and was rated as the top gainer on France’s blue-chip CAC 40 index, while shares in Holcim were up 5.4%. Lafarge is stronger in Africa and Holcim stronger in Latin America, company executives told reporters on a conference call, therefore the merger strengthens both entities.

$171mNAKHEEL POSTS $171.24MN IN Q1 2014 NET PROFIT

Strong first quarter results built on ‘robust financial performance in 2013’

NAKHEEL HAS ANNOUNCED first quarter net

profit results of $171.24 million, a 28% increase on

net profit from the same period last year ($133.6

million). The real estate developer also reported

revenues of $471 million for the first three months

of the year.

In a statement, Nakheel said that the strong

first quarter results built on the company’s ‘robust

financial performance’ in 2013. Profits reached

$699.7 million last year, a 27% increase from 2012.

“Our robust financial performance is more

conclusive evidence of our ongoing commitment

to achieve our corporate objectives ahead of

time, and further proof that we continue to move

forward and to win investor trust and confidence.

Our Q1 2014 results build on our impressive

financial performance in 2013 and are a clear

indication of what lies ahead for the rest of the

year in terms of our financial success,” said Ali

Rashid Looth, Nakheel chairman.

“We continue to deliver ahead of our business

plan, enhance our existing communities and

expand our business and development portfolio,

laying the foundation for a long term sustainable

business.

“In addition, we are well on course to further

reduce our bank debt during 2014, having already

paid off a substantial amount of $639.80 million a

year and a half before it was due,” he added.

IN Q1 NET PROFIT

28% INCREASE FROM SAME PERIOD IN 2013

FRENCH FIRM TO BUILD EIFFEL TOWER REPLICA IN IRAQ

Three-storey structure to be built in the northern Kurdistan city of Sulaymaniyah

A FRENCH COMPANY has announced plans to

build a three-storey replica of the world-famous

Eiffel Tower in the Iraq city of Sulaymaniyah, the

second largest city in northern Kurdistan.

According to Yousuf Yassim, director of the

Sulaymaniyah municipality, the building will be

constructed for cultural and tourism purposes.

He added that the city had given permission to

the French firm to build the structure, along with

other projects, including a French products shop.

“In line with investment laws in Kurdistan,

foreign investors are asked to carry out a tourism

project in the city where they intend to invest,”

he said, according to quotes by the Iraqi News

Agency.

“This French investor presented the Eiffel

project to Sulaymaniyah municipality, which

approved the project. It will have the same design

as Eiffel Tower in Paris and will be equipped with

laser lights showing the flags of Kurdistan and

France,” he added without identifying the investor

or giving further details of the project.

STRONG RESULTSNakheel reports strong Q1 results on the back of a robust performance in 2013.

REPLICA TOWERA French firm will

build a three-storey replica in Iraq.

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BIG PROJECT MIDDLE EAST EXAMINES THE REAL INDUSTRY COSTS OF PUSHING FOR SUSTAINABILITY – PAGE 40

WHAT IS THE IMPACT OF GLOBAL ECOLOGICAL IMBALANCES ON CONSTRUCTION PRACTICES?Construction activity leads to increased

demands for power and water in a country.

Industries cannot grow without thinking of the

future. It is therefore critical to accommodate

sustainable practices, such as intelligent use of

fit to purpose water, efficient building designs,

and optimal utilisation of concrete and so on.

WHAT ARE THE FACTORS DRIVING MODERN CONSTRUCTION MARKETS TOWARDS SUSTAINABLE PRACTICES? Urban centres are facing a rise in population, not

only due to inherent local population growth,

but also trans-migratory trends. This places a

significant demand on urban environments,

which when combined with economic

development and objectives calls for intelligent

sustainable city planning measures.

IS DUBAI EQUIPPED WITH THE RESOURCES REQUIRED TO REDUCE ENVIRONMENTAL THREATS, SUCH AS WATER SHORTAGE?As is the case with most regions, the principle

GOVERNMENT MEASURES CAN INCREASE SUSTAINABILITYDEVELOPERS WILL ADAPT TO GREEN LEGISLATION, END-USER DEMANDS FOR SUSTAINABILITY, AUSTRALIAN GOVERNMENT OFFICIAL TELLS THE INDUSTRY

“WATER SHORTAGE IS A VERY REAL AND URGENT THREAT IN THE REGION, AND I KNOW RELEVANT GOVERNMENT AUTHORITIES IN DUBAI WILL ACTIVELY WORK TO AVOID IT”

WATER THREATWater shortages are a ‘real and urgent’ threat in the GCC region.

that water can indeed be reused for different

purposes will not be accepted until there is a real

shortage of the resource itself, whether naturally

or through increased costs. Thereon, it requires

a change in end-user habits and attitudes

to ensure resources are conserved, and this

education begins with the youth. Water shortage

is a very real and urgent threat in the region, and

I know relevant government authorities in Dubai

will actively work to avoid it.

IDEALLY, SHOULD THE SETTING OF SUSTAINABILITY TARGETS BE DRIVEN BY THE GOVERNMENT, OR THE PRIVATE SECTOR?If governments set a vision and implement

legislation and policies driven at sustainability

targets, developers will automatically adapt to

the same. Eventually, if a city or country cannot

show its sustainability quotient, chances are

good it will fail to attract investors.

WHAT ARE THE ADVANTAGES OF ACCEPTING SUSTAINABILITY FOR DEVELOPERS?Sustainability is not only an ecological advantage

for the owners, but also a long-term financial gain

and cost-cutting measure. Increased education

and awareness about sustainability amongst the

public will motivate owners to accordingly meet

the reformed market demand. It is much like the

law against smoking indoors – once the masses

see the logic behind a legislation, trends will alter

accordingly, and companies will have to adapt to

meet these demands.

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NEWS ANALYSIS BIGPROJECTME.COM

REBUILDINGEGYPTBig Project ME analyses the impact of the deal between Arabtec Holding and the Egyptian government to build one million homes in the North African country. Gavin Davids reports

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NEWS ANALYSIS

Earlier this year, Arabtec Holding announced

that it entered into a $40 billion agreement

with the Egyptian government to build

a million houses across 13 locations in

the country, creating what is believed to be

the Arab world’s largest housing project.

Since the ouster of President Mohamed

Mursi in July 2013, the UAE, Saudi Arabia and

Kuwait have pledged billions of dollars in aid

to Egypt. In the lead up to the general election,

these investments will have a crucial impact

on the direction Egypt takes in the near future.

Therefore, it is safe to say that this $40 billion

project is more important than it appears to be.

With more than one million jobs expected

to be created by the project, there is set to be

a tremendous roll-on effect, as Dr Theodore

Karasik, director of Research and Consultancy

at the Institute for Near East and Gulf Military

Analysis (INEGMA) in Dubai, explains.

“Egypt is in desperate requirement of

an injection of these types of projects,”

he tells Big Project ME. “These types of

investments help overall. It does trickle down

into Egyptian society and it does provide

stabilisation and potential growth.”

“Clearly there will be more opportunities

for employment. I think that the idea is to give

employment to those who need it most, in and

around these projects. I think that it’s a very

positive development and if that model works,

then we’ll start to see more investment in Egypt,

because it is at the very core of the region and

a stable Egypt is very important to the GCC.”

This importance is reflected in the way

the regional markets reacted to the news,

with Egyptian real estate shares jumping to

their highest level in more than five years as

investors speculated that property developers

would benefit from the agreement.

Meanwhile, Arabtec shares climbed by as

much as 3.5% before paring the increase to 1.7%

to 4.88 dirhams on the day of the announcement.

“This is positive news for Arabtec, and

gives the group a favourable footing in Egypt

given the UAE’s support for the interim

government,” says Nayal Khan, head of

institutional sales and trading at Naeem Holding

in Dubai, in an email to Bloomberg News.

“Arabtec is the ‘latest channel’ through which

the UAE is directing aid to Egypt, and the project

adds substantially to the contractor’s backlog.”

Dr Karasik explains that the decision to

push through the deal, at least on the Egyptian

government’s part, was because they had

seen the success of the GCC construction

model and wished to emulate them.

“They have set up a system of embracing

what I would call the ‘Gulf-like construction

and infrastructure models’ and have imported

them into Egypt and exported them from the

Gulf states because this model works very well

to create housings and the cities, if you will,

that will rise up around these construction

sites, and will provide social security and

human security at the same time,” he says.

The UAE-based Architecture and Planning

Group has been appointed to prepare the

master-plan for the $40 billion dollar project

and El Sayed Zakaria, managing director of

the company, told local media that the project

would be implemented in three phases, with

designs for the first phase set to be submitted in

September of this year. He adds that contracts

would be awarded two months from submission.

Phase one of the project will see housing

units being built in the Cairo industrial

districts of Al Aboor and Badr City, along with

the upper Egyptian governorate of Minya.

Doctor Essam Nabih, business development

manager for the Architecture and Planning

Group, tells Big Project ME that as lead

consultants for the project, the group would

be handling basic engineering such as

structural, electrical and mechanical, as

well as being involved in the appraisals and

feasibility studies as part of the masterplan.

“There are one million units involved in this

project and ‘units’ here refers to apartments.

We’re talking about 13 plot locations in Egypt

“EGYPT IS IN DESPERATE REQUIREMENT OF AN INJECTION OF THESE TYPES OF PROJECTS. THESE TYPES OF INVESTMENTS HELP OVERALL. IT DOES TRICKLE DOWN INTO EGYPTIAN SOCIETY AND IT DOES PROVIDE STABILISATION AND POTENTIAL GROWTH”

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Sami Asad, former CEO of Arabtec Construction has been reassigned as the CEO of the newly formed Arabtec Egypt for Real Estate Development

Asad was formerly the chief executive and chief operating officer at the Abu Dhabi property developer, Aldar. He joined Arabtec about a year ago as CEO of Arabtec Construction.

“We believe the Egyptian economy, which holds high investment potentials in a broad range of areas, is poised for significant upturn,” said Asad in an Arabtec statement.

Meanwhile, Dr Nabil Ailabouni will take over responsibility for the global operations of Arabtec Construction, reporting directly to the chairman and Arabtec Holding’s managing director and CEO, Hasan Ismaik.

His immediate focus will be to deliver a number of major projects recently undertaken and meeting business plans, targets and future expansion strategies.

ARABTEC RESHUFFLE

which extend across acres, and some of the

projects will extend to becoming satellite cities

due to the size of the projects,” he reveals.

“We have been given the plots to have a look

at them and explore them to help us design

them appropriately. The designs will include

all infrastructure required in satellite cities,

such as schools, mosques, healthcare units,

churches, city centres, retail outlets and all other

services associated with the development.

“While planning and designing for the

project, we cannot forget that it is aimed at

affordable housing and must be constructed

accordingly to ensure that it is optimised by

the segment it is targeted at,” Dr Nabih adds.

Speaking about the actual construction

process, the Group’s spokesman said that

designers would also have to be aware

of a number of factors, including both

climate and social considerations.

“Every part of the world has its own special

climatic conditions, and construction designs

also need to take other factors into consideration,

such as the social and cultural elements of the

area, as well as the need and requirements

of the end-users in the market,” he says.

“While designing for this project, we

will definitely bear in mind that there exists

numerous microclimates within the country

which have to be considered. For instance,

there’s a difference between working in north

coast cities, such as Alexandria and Upper

Egypt cities such as Aswan or Luxor.”

However, some analysts have expressed

reservations about the project. Kareem Ghaly,

an equity analyst at the Egypt-based investment

bank EFG-Hermes, says that there are concerns

being expressed about the viability of the project.

“In its last conference call, Arabtec

management declined to give any guidance on

its $40 billion MoU with the Egyptian Ministry

of Defence. The management mentioned that

the agreement is still in the structuring phase,”

Ghaly says in an interview with The National.

“The company did mention, however, that it

will hold an analyst day in the coming weeks to

disclose more details about this agreement. Until

more solid facts are disclosed, we should remain

cautious on the prospects of such an agreement.”

Ties between the two countries have

deepened in the recent months, with the

UAE having extended $6 billion in support

of the Arab world’s most populous nation

following the unrest that followed the

removals of Presidents Mubarak and Morsi.

Saudi Arabia and Kuwait have also extended

their assistance to Egypt as the North African

country struggles with stagnating economic

growth and a lack of international investment.

“I think it’s very clear from recent deals that

have been announced, not only with Arabtec,

but with other entities in Saudi Arabia or the

UAE. These two Gulf countries in particular, are

trying to build Egypt’s infrastructure and help

Seesi further consolidate his power as he runs

for the presidency,” says Dr Theodore Karasik.

“What this does is that it cements the

relationship between the three countries

– the UAE, Saudi Arabia and Egypt – and

continue to push Qatar off to the side,

which is one of the reasons that we saw this

diplomatic furore between the GCC states.

“We’ll have to see how the coming months

unfold, given other regional events like the

elections in Iraq, elections in Syria and of

course the elections in Egypt. All of these are

going to be factors and these countries are all

going to be looking at each other and seeing

how they’re behaving,” Karasik explains.

“The UAE has a vision for how particular

countries in the region are going to develop and

they’d like to apply that model now because

they want to make sure that the region becomes

stabilised. From their point of view, there are

many parts of the region that are destabilised and

those regions or countries need to be targeted for

investments in order to build new projects and

social welfare, if you will. And in that sense, the

government is pursuing this type of remedy.” n

INFRASTRUCTURE BUILDThe UAE, Saudi Arabia and Kuwait have been investing in Egypt to rebuild its infrastructure.

EGYPTIAN INVESTMENTn Value of the

deal between Arabtec and the Egyptian government: $40 billion

n Number of homes that will be built: 1 million

n Number of construction locations across the country: 13

n Amount of aid sent to Egypt from UAE: $6 billion

Middle East UK North America Europe Asia

Faithful+Gould is one of the world’s leading integrated project and cost management consultancies. For over 65 years we’ve provided services in all sectors of the energy industry including, oil and gas; power; refining and petrochemical to ensure projects meet client objectives, are delivered on time and on budget.

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IN PROFILE BASHAR ABOU-MAYALEH

Big Project ME speaks to Bashar Abou-Mayaleh, managing director of

Hard Precast Building Solutions, about the changing role of the precast industry

in the UAE construction market

HARDACT TO

FOLLOW

There is an old joke amongst Dubai

residents that goes along the lines of:

‘If Rome is known as the ‘Eternal City’,

then Dubai must be known as the ‘Ever-

Changing City’. Granted, it’s not very funny,

but it’s a truism that perfectly encapsulates

the constant state of flux that is Dubai.

Nowhere is this more evident than in

the construction industry. According to the

International Monetary Fund, the population

of the UAE is expected to reach 6 million

people by 2015, up from 5.4 million in 2010.

The majority of them will decamp in Dubai,

while a few will make their way to Abu Dhabi,

Sharjah and the rest of the Emirates.

So it’s easy to see why this population surge

is considered to be the main growth driver

“WHAT I BELIEVE, AND BELIEVE IN STRONGLY, IS THAT PRECAST WILL GO AHEAD AND TAKE A LARGER SHARE OUT OF THE CONCRETE WORKS IN THE CONSTRUCTION INDUSTRY. EVEN DURING THE DOWNTURN, THIS (PRECAST) KEPT GOING”

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IN PROFILE BASHAR ABOU-MAYALEH BIGPROJECTME.COM

for the increased demand for residential and

commercial property units in the country.

Construction is big business in the UAE,

with the Dubai Chamber predicting that

the sector’s contribution as a percentage of

the country’s GDP will be 11.1% by 2015.

Not only is it big business, but it’s also

an expensive business. It’s not exactly cost

efficient to be building towering skyscrapers

and vast residential estates using the time-

honoured methods of construction when

there are hordes of clamouring real estate

buyers looking to grab a slice of the pie.

As a result, developers, consultants

and contractors are starting to get savvy to

different methods that will allow them to

build cheaply and quickly, while continuing

to maintain a high standard of quality.

This is where Bashar Abou-Mayaleh comes

in. As the managing director of Hard Precast

Building Systems (HPBS), he is the man tasked

with bringing to life the vision of the Al Shafar

Group, the parent company of HPBS.

Speaking to Big Project ME at his offices

onsite at the HPBS precast factory in Dubai

Investments Park, Abou-Mayaleh explains why

he thinks precast concrete solutions are the next

big thing for the UAE construction industry.

“The resourcing of skilled labourers

is becoming more and more difficult and

construction companies in general are getting

less skilled workers (than before), with more

expenses. If we’re talking about the cost

of labour for the companies, this includes

labour accommodations, food, visas and so

on. All these expenses are increasing. That’s

why you have huge increases in the cost of

labour and a lower output,” he points out.

“What I believe, and believe in strongly, is

that precast will go ahead and take a larger share

out of the concrete works in the construction

industry. Even during the downturn, this

(precast) kept going. Knowledge about the

precast industry is increasing within the

construction industry. Developers, consultants,

contractors, all the great achievements of the

“IT WAS A HUGE ACHIEVEMENT TO GET SUCH HIGH-RISE STRUCTURES APPROVED BY THE DUBAI AND ABU DHABI MUNICIPALITIES. THEY ARE VERY STRICT ABOUT STRUCTURAL (SAFETY) AND THEY ARE VERY DEMANDING AUTHORITIES”

precast industry – in the UAE especially – are

very well known,” Abou-Mayaleh enthuses.

“The concrete precast industry in the UAE is

ready to produce around 2 million cubic metres

of concrete per year. This is a huge number

and the infrastructure of the industry is ready

to produce this. We have been producing, on

average, 1.3 to 1.2 million cubic metres per

year, but now the advanced factories in the UAE

are ready to produce, starting from this year, 2

million cubic metres of precast elements.”

So confident is he of the predicted

success of the precast industry, Abou-

Mayaleh reveals that Hard Precast Building

Systems is aiming to launch another factory

to help cope with expected demand.

“If we continue with only this plant, we

expect that this factory will run at full capacity for

the next four or five years, but we are seriously

thinking about adding another plant to meet

the very high expected demand and we are sure

that the second plant will be fully booked - the

production capacity will be fully booked for the

next four or five years,” he claims confidently.

The current facility was built in 2004

and has a total size of 1 million sqm.

HUGE DEMANDBashar Abou-Mayaleh predicts that there will be a massive increase in demand for pre-cast solutions in the region.

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IN PROFILE BASHAR ABOU-MAYALEH

Having been involved with the UAE

construction industry for more than 20 years,

15 of those with Al Shafar Group, Abou-

Mayaleh is well-placed to offer comment

on the changing trends in the country.

“I’m an industry engineer by nature. I have

an MBA in production management and I

joined the Al Shafar Group when they decided

that they wanted to go in with huge investment

into the construction industry,” he relates.

“I started, in fact, by making several feasibility

studies within the construction industries

and now the group has executed many of

these studies. I found myself specialising in

the concrete field after a while, so I formed,

in the beginning, a hard block factory and I

managed it from A to Z. It is still a sister company

(in the group), along with Hard Precast.

“That was in early 2000. After two or three

years, in 2004, we formed Hard Precast to fulfil

the expected high requirements. You know the

boom was crazy and we had come to the market

at the right time. Our first project was Jumeirah

Beach Residences, the biggest residential project

in the world at the time. We were very successful

because there were several sectors and several

pre-casters. The rate of our production and our

speed of installation was unbelievable. We had

started late because our installation facilities

were still under installation, yet we finished the

project three or four months before any of the

other pre-casters,” he tells Big Project ME proudly.

“After that we were involved in many

prestigious landmark projects. We have covered

all the applications of precast in the building

sector. We are not in the infrastructure sector

as such, but we’ve worked across all the

applications, horizontal and vertical applications

included. In fact, we were the first pre-caster

to enter high-rise buildings with structural

precast solutions,” Abou-Mayaleh adds.

This was, he concedes, a challenge, given

the complications that came with it. As one of

the first precast companies to move into high-

rise construction, HPBS naturally had to deal

with stringent inspections and expectations

from government bodies, none of whom were

prepared to allow for any lapses or leeway.

“It was a huge achievement to get such high-

rise structures approved by the Dubai and Abu

Dhabi Municipalities. They are very strict about

structural (safety) and they are very demanding.

(As a result,) we brought in precast technology

and we were a pioneer in the Middle East,

bringing the latest in precast technology into

the region. That helped us very much,” he says.

“See, the precast industry in the Middle East

was made for the work and mould industry,

but we brought in automated production

lines with very specific production processes.

We have specialised teams that deal with

every process of production and the results

have been very good. You have much bigger

quantities and much better quality.”

One of the biggest projects Hard Precast

Building Systems is currently involved in

is the Citywalk project that is on Al Wasl

Road. Owned by Meraas Holding, the

development is a retail and leisure destination

for visitors and residents in Jumeirah.

“It’s a huge project that lies on a big patch

of land from behind Al Mazaya Centre and

“THE CONCRETE PRECAST INDUSTRY IN THE UAE IS READY TO PRODUCE AROUND 2 MILLION CUBIC METRES OF CONCRETE PER YEAR. THIS IS A HUGE NUMBER AND THE INFRASTRUCTURE OF THE INDUSTRY IS READY TO PRODUCE THIS”

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Al Wasl Road. The phase we’re working on

right now represents a really small part of it.

We are working with the stakeholder of the

project. We have developed and redesigned

the project into total precast solutions. It

was a little challenging because of their

very high architectural requirements.”

“As you know, architectural requirements

are often the enemy of modular solutions! The

project has started and it is being seen and

is attracting the eyes of everyone who passes

by. We have signed on for a big part of the

project and there is more to come. The main

contractor is discussing the second phase with

us. As for the precast superstructure, it will be

finalised over the course of 2014,” he explains.

This attention to detail is what sets HPBS

apart from its competitors, Abou-Mayaleh says.

He adds that his company was one of the first

pre-casters to meet the Dubai Municipality

requirements for thermal insulation when

they were increased dramatically in 2005, a

consequence of their preparations and research.

“Our insulated wall panel systems were

immediately finalised and approved by Dubai

WALK INTO THE FUTUREDecember 2013 saw the opening of Citywalk by Meraas Holding in the Jumeirah area of Dubai.

Phase 1 of the Citywalk covers more than 350m of retail frontage, along with a tree lined walkway designed in the style of European high streets. Future phases are expected to be activated shortly, with the entire project promenade set to run for a length of 1.3km.

Located at the junction of Al Wasl Road and Safa Road, the development is within easy walking distance of surrounding residential areas and is a 15 minute walk from the Dubai Mall metro station. It can also be accessed from Sheikh Zayed Road via Interchange 1. The project also has an artificial lake which is designed to create a public square for visitors, with outdoor seating providing views of the Burj Khalifa.

The retail units have been designed to provide a modular 9m retail frontage, with building depths that range from 12m, 15m and 18m. They are intended to be adaptable to the retail requirements of the lease holders.

Smaller pavilion buildings and kiosks have also been incorporated into the design. Multiple access points to the site have been developed, along with ‘ample’ car parking spaces, Meraas added.

Municipality. Now we are ready to make some

further developments. They are already looking

to make some major increases to the thermal

insulation requirements. We are almost done

with our research and develop, and our trials.

We are ready for that,” he says confidently.

“We are always prepared because the

(results of the) studies have been put in

our hands a few years before,” he says,

discussing how HPBS prepares for changing

requirements from government bodies.

“The implementation of these very

high new requirements is not new. We

have gone through all these environmental

developments and implementations, along

with Dubai Municipality, Estidama, and all

these other environmental regulators.”

“This is the culture of Hard Precast.

We will always be a student in such

a huge and creative industry.

“There are, each and every day, many new

ideas and we are always very enthusiastic about

catching the suitable ideas, to bring in the latest

business practices in the world, adopt them here

and feed them within our operations,” he asserts.

“We have a very active research and

development department and we are eliminating

the outsourcing of things, we are producing many

of our own miscellaneous requirements in house

and under very strict controlled environments.

“Furthermore, our internal school trains

a new generation of skilled people who are

specialised in our detailed processes, each and

every day,” the managing director of Hard Precast

Building Systems explains further, highlighting

just how committed he and his parent company

are to pushing forwards the cause of precast

solutions in the UAE and further abroad.

“THIS IS THE CULTURE OF HARD PRECAST. WE WILL ALWAYS BE A STUDENT IN SUCH A HUGE AND CREATIVE INDUSTRY”

TOTAL INVOLVEMENTHPBS has been heavily involved in the design and development of Citywalk on Jumeirah Beach Road.

MAC AL GURGAl Ittihad Road P.O.Box 672 | Dubai, UAE Tel: +9714 266 12 91 Direct: +9714 266 12 91 Fax: +9714 269 10 67 Mobile: +971 55 800 69 70

www.algurg.com

Andian™ with DIAMOND™ Valve

IMPRESSIVE INNOVATION. INSIDE AND OUT.

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ON SITE KEMPINSKI, THE WAVE, MUSCAT BIGPROJECTME.COM

Project Name Kempinski Hotel, Muscat

Project Developer Oman Hospitality Company

Project and Development Manager Faithful + Gould

Project value $220.77 million

Construction contract $129.8 million

Contractor Carillion Alawi

Consultants WSP and Woods Bagot

CONVOLUTED CONSTRUCTIONBuilding the Kempinski hotel has been a long and convoluted process for project director, Peter Willmott, of Faithful + Gould.

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ON SITE KEMPINSKI, THE WAVE, MUSCAT

Big Project ME takes a tour of the construction site of the Kempinski hotel on The Wave. Gavin Davids reports on this most challenging of projects in Muscat, Oman

CATCHING THE WAVE

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On November 13, 2013, the founda-

tion stone for the Kempinski Hotel,

part of The Wave project, was laid,

marking the beginning of construc-

tion for one of Oman’s most convoluted

hospitality construction projects.

Originally designed between 2009 and 2010,

the project was only tendered at the start of 2011

before being put on hold. During that period, the

project was sold to nine Omani pension funds

operating as a single entity-the Omani Hospitality

Company - from its original owner, The Wave.

Further complicating progress on the

project was the sheer scale of it. Clocking

in at more than 45,000sqm, the Kempinski

hotel project is a mammoth undertaking in

any circumstances, never mind one with so

many stakeholders and vested interests.

The hotel will offer 309 rooms and 77 hotel

apartments, in addition to a range of facilities

including halls that can accommodate in excess

of 750 people. Twelve local and international res-

taurants and cafes are also being built, not only to

cater for hotel guests, but also for residents in the

surrounding properties operated by The Wave.

As Peter Willmott, project director for the

development says, the building isn’t revolution-

ary in terms of its design and build. However,

because it is one of the largest hospitality projects

in Oman, it comes with added pressures.

“As well as being a hotel for guests, it

is aimed at providing facilities for the sur-

rounding residents. There are significant

F&B and leisure offerings in the hotel that are

aimed at The Wave residents as well as hotel

guests,” he explains to Big Project ME dur-

ing a tour of the massive construction site.

“That’s just because at the time, when the

development was done (back in 2009), you were

basically looking at food and beverage concepts

that were done in 2009 and then you’re going to

open them in 2015. That’s the main challenge

that’s resulted from the delay,” Willmott adds.

Having worked for no less than three different

organisations on the project, Willmott is perhaps

the perfect person to head up the Kempinski site,

having been involved initially with The Wave

development team and then as project director

for Confluence. With that organisation evolving

into Faithful + Gould, he says that it is time for

the project to begin picking up a head of steam.

“We (F+G) have a project management and

development management role on the project.

At the moment, there are five staff associated

with the project. We’ve got myself as project

director. We’ve got a full time project manager

who’s also managing the staff accommodation

project as well – which is for 600 staff. Then

we’ve got a full time project manager who is

managing the delivery with me, and we’ve got

a document controller and a part time plan-

ner who comes in when needed,” he outlines.

As Willmott touches upon, part of his job

as project director is to manage all the associ-

ated facets of the site. This includes work-

ing with the contractor, Carillion Alawi, and

FIVE STAR COMFORTThe hospitality project will have 309 hotel rooms and 77 hotel apartments.

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tion, which isn’t as prevalent in Oman (as

it is in the rest of the GCC),” he explains.

With a total development budget of $220.77

million, which includes a construction contract

of $129.8 million to Carillion Alawi, the need

for value engineering becomes stark, especially

when measured against the extremely tight

construction schedule facing the project.

“It’s between the third and fourth quarter of

2015. We’re tracking slightly behind schedule

at the moment, but that’s mainly due to one

of the value engineering solutions being to

redesign the frame to a post-tensioned solu-

tion. So there’s been some delays that weren’t

projected in getting that design complete

and approved. But we still aim to maintain

those completion dates,” Willmott asserts.

“There’s three working fronts which are

being done. One is the hotel apartments, then

you’ve got two shifts working on the hotel,

there are ten large concrete pours only in the

foundation slab. There’s probably 50,000m3 of

“AS WELL AS BEING A HOTEL FOR GUESTS, IT IS AIMED AT PROVIDING FACILITIES FOR THE SURROUNDING RESIDENTS BECAUSE THERE AREN’T THAT MANY FACILITIES ON THE WAVE”

to Kempinski, which have been grown, but the

major challenge that you’ve got is making sure

a design commenced in 2009 is still cutting

edge and relevant upon opening in 2015.”

Thanks to the tweaks in design and planning,

Faithful + Gould, and Willmott in particular,

had to undertake extensive value engineer-

ing to ensure that the client’s target was met.

“It’s been quite an exhaustive process to

go through,” Willmott relates, “The remit for

that is not about quality or cost cutting, but

it’s more about selecting the right manufac-

turers or opening the market up to competi-

the consultants, WSP and Woods Bagot.

“What we did was that we sat with each

package and went through each package

with potential people who were put for-

ward by Carillion. We worked hand-in-hand

with Carillion to do that,” he explains.

Another stakeholder to include in dis-

cussions was the hotel operator.

“Kempinski were quite involved in the

design and layout of the hotel and how the

rooms functioned, all the early parts of the

design. But in terms of there being any specific

requirements, there were a few features new

LOTS TO COVERThe entire project covers

a total area of 45,000sqm.

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concrete to go into the project. There are quite

a large amount of resources that are required.”

“Post-tensioning will reduce the amount of

steel tonnage, it’s probably just under 20,000tons

of reinforcing steel, but we’ve got a number

of different structural solutions,” he adds.

“There’s what can be described as a lantern

design for the ballroom, that’s in structural steel

with a concrete and metal roof. Then we’ve got

traditional cast in-situ foundations and slabs

for that element. You’ve got post-tensioning

for the main repetitive blocks,” he adds.

“Most of the other stuff wasn’t a change in the

product, it was just a re-specification. We value-

engineered sanitary-ware and saved $544,000.”

Wilmott points out that because the pro-

ject has been around since 2011, the supply

chain was priced according to those prices.

“The supply chain was a bit reluctant to

reengage and give the best price for the pro-

ject because it’s been around for so long. Post

getting a letter of intent out and the project

JOB CREATOROwned by the Omani Hospitality Co, the Kempinski hotel is expected to create 600 direct jobs; as well as other economic direct and indirect returns.

“The whole project is a value added to the growing tourism sector in Oman,” said Shaikh Rashid bin Saif al Saadi, Chairman of OHC.

The hotel is to be operated and managed by Kempinski Hotels.

Oman National Bank, Oman Arab Bank and Bank Sohar signed agreements with OHC to provide finance for the project.

OHC was established with the objective of developing hospitality related projects in Oman.

The shareholders of OHC, which include OBIC, National Investment Funds Co (NIFCO) and several Omani pension funds, are focused on developing projects that will support the sultanate’s objective of developing the tourism sector.

WORK ON ALL FRONTSThere are three working fronts on the project: the hotel apartments, the hotel and staff accomodation.

PROJECT SPECIFICATIONSn Total size of project:

45,000sqm

n Total built up area (hotel): 61,000sqm

n Total built up area (hotel apartments): 20,000sqm

n Total concrete pour: 50,000m3

n Total steel tonnage: 20,000 tonnes

n Total work force: 2,000 – 3,000

actually being tangible again, we could go sit

with specific suppliers who maybe weren’t that

interested in giving the best price possible at

the time of tender. We took about $176.9 million

off in terms of value engineering,” he reveals.

While value engineering understandably

took up a lot of the project team’s time, there

were a number of other concerns unique to

Oman that have conspired to delay the project.

One such issue was making sure that the

height of the buildings did not exceed set limits.

“Everything in Oman is low-rise,” Willmott

says. “(Six storeys) is within three or four

meters of the maximum height because we’re

within range of the radar for the airport.”

Another issue has been the difficulty in

sourcing labour, with Willmott pointing out that

the current visa situation in Oman needs to be

addressed due to the difficulty expatriate workers

face when it comes to getting into the country.

With the project’s peak workforce expected

to be in the thousands, this is an issue that

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needs to be urgently addressed before any

major construction projects get started.

“Right now, there’s probably around

500 workers on site, which doesn’t look like

many because it’s so big. I’d imagine that

it’ll be between 2,000 and 3,000 at peak.”

However, this presents a whole other set

of complications due to the construction site

being right next to a high-end residential area

that expects a certain level of serenity, some-

thing that would be difficult to achieve with

2,000 labourers working from dawn to dusk.

“We’re in a residential area so controlling

noise and disturbance to surrounding residents

is important. Right now, it’s not at its nosiest,

but it’s going to restrict working hours because

the master developer has rules that say you’re

not allowed to work (during certain hours). This

puts more stress on the programme, because if

you lose time, you find it difficult to catch up.”

So how feasible is the construction com-

pletion date of September 2015, given the

numerous restrictions the team faces? Despite

the very tight schedule, Willmott remains

relatively confident the project will continue

smoothly, even with the looming Ramadan

schedule that will be enforced in summer.

“It’s still feasible for now,” he asserts. “Obvi-

ously when you reach the summer months, you’ll

have to do concreting works at night anyway

because you can’t pour concrete in the heat.

“Most sites switch to nights, but then we

may have problems switching to nights be-

cause the residential population here is 50%

Omani and 50% expatriate. So you’ve got half

the population up at night and the other half of

the population up during the day time! That’s a

challenge we’re going to have to get through.”

“During the summer and Ramadan periods,

you can lose a lot of time if you do not work

those alternative hours, so what we’ve done is

to work closely with the immediate surround-

ing residents, with community liaison officers,

to make sure we provide bulletins and regular

updates on construction. That’ll need to be

further increased as work progresses and has

the potential to further impact on their environ-

ment,” Willmott explains to Big Project ME.

“As we get inside the building to do fit-out

works, we may be able to do night shifts be-

cause the noise is controlled, but it’s still fairly

early in the project to be looking at that be-

cause the peak labour force is about six months

before the end of the project, when all the fit

out trades are running concurrently, along

with MEP and other various trades,” he says.

Willmott adds that Voltas has been ap-

pointed as the MEP contractor for the Kemp-

inski project, while other main packages are

going through the final procurement phases.

On top of all these precautions, there are

a number of other issues for the construc-

tion team to consider. With the hotel being

built on the beachfront, Willmott says that

special precautions have had to be taken to

ensure that the site is dewatered properly.

“Groundwork was done as an early works

package. There are no piles. What we did was

ground improvement. This is because the

ground is capable of dealing with support-

ing the buildings without piles,” he explains.

“We’re going to have four tower cranes. There

are three up at the moment. They’ll be sup-

ported by mobile cranes, which will be used to

deal with the difficult areas. There’s obviously

excavators and dewatering systems on there

now. All the dewatering is going into the sea.

There’s quite a lot of water actually, because

you’re almost trying to dewater the sea!”

“There’s an extra-robust tanking system in

the basement because half the basement will

be in the water table constantly, if the dewater-

ing is switched off. That’s another challenge in

design, because you ideally don’t want to be

placing concrete in water as water always finds

its way through. So we’ve got a double barrier

system in the basement to deal with any potential

ingress. That’s one of the challenges that you

get building on the beach. This area also has a

lot of standing water everywhere because when

it rains it doesn’t go anywhere because the

water table is so high in this area,” he explains

“A number of residences here have a half-

basement to avoid that (problem). They stick

half out of the ground, that’s why their parking

lots are so short. If you actually go into the water

table, it pushes your costs up a lot. We have tried

to keep a lot of the building raised up, to keep out

of the water table, but then we couldn’t get the

parking in. With the height restrictions, you have

to get a certain amount into the basement, and

that was done earlier on and we’ve moved it up

as far as possible,” the project director asserts.

With the amount of dewatering going onsite,

Willmott is quick to point out that there are

stringent tests in place for the water that is be-

ing pumped back into the sea. This is one more

example of how seriously the Sultanate is taking

its responsibilities towards environmental laws

and further indication to the importance be-

ing afforded to this hospitality project, which

is set to become a beacon for the potential of

Oman as a eco-tourism destination for both

the GCC and the international market.

“THE REMIT FOR THAT IS NOT ABOUT QUALITY OR COST CUTTING, BUT IT’S MORE ABOUT SELECTING THE RIGHT MANUFACTURERS OR OPEN THE MARKET TO COMPETITION, WHICH ISN’T AS PREVALENT IN OMAN”

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SPECIAL REPORT OIL & GAS BIGPROJECTME.COM

TIME OF CHANGEQatar Shell is looking to involve more local

contractors and suppliers in its projects.

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SPECIAL REPORT OIL & GAS

Qatar’s oil and gas industry is in the midst of tremendous change. Big Project ME sat down with Qatar Shell to find out how the game is changing for local contractors and suppliers

OPPORTUNITYKNOCKS

As the holder of the world’s third largest

proven conventional gas reserves, Qatar’s

rise to being the leading global exporter

of Liquefied Natural Gas (LNG) has been

the catalyst for it becoming one of the most

lucrative constructive markets on the planet.

This has been typified by the major

infrastructure investments that have been

launched to support the diversification

of the economy, leading to double-digit

growth in the non-hydrocarbon sector.

In its latest ‘Qatar Economic Insight’, the

Qatar National Bank says that the main areas

of investment have shifted from oil and gas

to construction and transport. The bulk of

these projects are expected to be completed

ahead of the 2022 FIFA World Cup.

Qatar has enormous oil and gas wealth,

with its gas reserves estimated at 885,000

billion cubic feet in 2013 and proven reserves

of around 193 billion barrels of oil equivalent

(boe) in 2012. Therefore, as part of its shift

away from the hydrocarbons sector, the Qatar

government has decided to implement a

moratorium on further gas development in the

North Field until at least 2015, with the exception

of the Barzan project, the QNB report says.

However, this does not mean that the oil and

gas sector will be neglected. Quite the contrary,

as the managing director of Qatar Shell explains.

Speaking to Big Project ME in Doha, at an

event organised by Qatar Shell to promote the

private sector, Wael Sawan says that his company

will be looking to support local suppliers and

EPC contractors as part of a drive to achieve

a ‘sustainable economy’ and ‘facilitate the

private sector and a diversified economy’, as

per the directives of the Qatari government.

“At Qatar Shell, we have confidence in

the quality and capabilities of local suppliers

and trust in their ability to add value to our

operations in Qatar,” Sawan says. “The new

business opportunities we are offering to

Qatari SMEs is to allow to them to become the

supplier of choice for the Pearl GTL plant.”

Sawan said the contract for the manufacturing

of personal protective equipment was awarded

last year to Qatari Industrial Equipment while

GEA Batignolles Technologies Thermiques Qatar

received the heat exchanger re-tubing contract.

A third contract for translation services,

Sawan added, was awarded to Snow Comms

Conceptual Communications and Events.

“In support of our valued partner Qatar

Petroleum and in close collaboration with

QDB, we are committed to the Qatar National

Vision 2030 by developing local content and

SMEs. I am delighted to report that we have

certainly made progress in this area,” he says.

“Just last year, we held our very first SME

Business Opportunity Workshop, and it

was during this process that three contracts

were awarded to local suppliers. This

year, we are revealing seven new specific

business opportunities within the Pearl

GTL plant to local SMEs,” he adds.

The value of these projects is $8.2

million to $13.77 million over the three

to five year lifetime of the project.

This year’s issuing of contracts expands

on the initial set awarded last year to four

Qatari companies. Sawan reveals that both

his organisation and QDB continue to

learn how to better identify vendors and

suppliers while improving the support

they require to reach the high standards

required to serve a global player like Shell.

“The big thing we have done differently is

that we have been much stricter in our definition

of the criteria that are required to qualify for

one of these contracts,” explains Sawan.

“We wanted to make sure that we are hitting

certain target sectors. So this year we have

increased the number of criteria required,

including introducing a requirement for the

company to be at least 51% Qatari owned, that

the head office is here in Qatar, and thirdly and

most importantly that the company doesn’t

have revenues of more than $27.4 million.”

The reasoning behind such stringent

measures is to ensure that smaller suppliers

and contractors have the opportunity to bid for

business, in an environment where they would

have previously been out-muscled by bigger

and more experienced international firms.

“We’re really trying to make sure that we don’t

broaden the opportunities beyond the target

sector that we are really focused on. We do give

opportunities to the others in other areas.”

“A big part of this is definitely the Qatar

2030 Vision and what we can do to support

it. The second part of it is the recognition

globally at Shell that having a local supply

chain is much more effective than having

“THIS IS ABOUT BEING MUCH MORE OPEN MINDED TO GIVING TIME TO SUPPORT PEOPLE THAT SEEM TO HAVE ALL THE RIGHT INGREDIENTS BUT NOT THE OPPORTUNITY”

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an international one,” he points out.

“(This is so that) that you have access at the

source, so if there is a problem you only have to

go locally to work with them. There is always a

requirement: there may be a different holiday

there, or a shipment may not come through,

knowing that we have the full security of being

in the same country as the supply base gives us

reassurance. When you need things, Murphy’s

Law dictates that you need them yesterday.

You need quick access,” Wael Sawan insists.

Nick Van Keulen, head of contracts and

procurement at Shell Qatar is quick to weigh

into the discussion about backing local

contractors and suppliers over international

players in the Qatari oil and gas market.

“This is not a numbers game – this is

about localising your supply chain. We have

a large manufacturing facility and if we

make ourselves completely dependent on

companies outside of Qatar, when we have

a problem how are we going to fix it?

“You can make a phone call to Europe and

the US but before you know you’ve waited a

week for a part to be shipped here. If you’ve

got someone around the corner you can

pick up the phone, go to them and you can

fix it. It makes a lot of sense,” he asserts.

“If you go to Rotterdam or Houston, you

have a big conglomeration of big refineries

and a whole supply chain around it. Ultimately

that’s what we want here,” Van Keulen adds.

“So we’re working with companies to find

out what we can do locally and (what we

can) outsource. Having Qatar Petroleum as a

partner lets us find out what’s in the market.

It’s all about getting the stuff done locally.”

What is interesting about this drive towards

creating a self-sustaining oil and gas industry

in Qatar is that it is pushing the contractors and

suppliers in the market towards meeting higher

international standards, while simultaneously

benefitting them from a business perspective.

The success of this method becomes

crucial when you consider how difficult it

has been to get the wider GCC construction

industry to embrace tougher standards.

“It’s a two-way process. We will not drop our

minimum qualifications,” says Wael Sawan. “This

is much more about being much more open

minded about giving time to support people

that seem to have all the right ingredients but

not the opportunity. You give those people the

opportunity to become world class in the way

they think about not just the way they think

but the way they execute the process.”

ECONOMIC DIVERSIFICATIONQatar is expected to move away from its reliance on gas for revenue and switch its focus towards petrochemicals and fertilizers in a bid to diversify its economy, industry.

According to data from the Energy Information Administration (EIA), Qatar is the world’s largest exporter of LNG. It is estimated that it had natural gas reserves of 885,000 billion cubic feet in 2013.

Furthermore, data released by the Organisation of the Petroleum Exporting Countries (OPEC) showed that oil and natural gas account for about 60% of the country’s GDP and around 85% of export earnings.

In 2012, Qatar produced 16.8 million tonnes of petrochemicals, according to Gulf Petrochemicals and Chemicals Association (GPCA).

As part of its long term plans to develop the sector, the country is expected to invest $25 billion to boost its capacity in the petrochemical sector to 23 million tonnes by 2020 Upcoming petrochemical initiatives in the country include the Al-Karaana petrochemical project and the Qatar Petroleum’s Ras Laffan Gasoline and Aromatics Project (RLGAP).

VAST RESERVESQatar is estimated to have 885,000 billion cubic feet

of LNG reserves.

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MARKET REVIEW QATAR BIGPROJECTME.COM

Big Project ME reviews the impact of population growth on the burdened but promising Qatari construction market

THE QATARCONUNDRUM

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MARKET REVIEW QATAR

POPULATION SPIKEBy next year, Qatar’s

population is estimated to reach 2.4 million people. Q

atar’s population, if estimates are to be

believed, will spike to 2.4 million in 2015

from its current figure of 2.1 million.

Frank Harrigan, director of the

Department of Economic Development at

Qatar’s Ministry of Development Planning &

Statistics (MDPS), speaking at a conference in

December 2013 said he expected population

growth by up to 15% over the next two years

as the country readies to host the FIFA World

Cup 2022. “Currently the population is about

2.07 million, but it will continue to increase

over the next two years,” Harrigan said while

speaking at the Qatar Energy and Water Efficiency

Conference 2013, according to The Peninsula.

In the short duration between Harrigan’s

comments in December 2013 and February 2014,

more than 100,000 people have been added to

Qatar’s population. (According to MDPS figures,

the country’s total population as of 28 February,

2014 was a record 2,116,400 – a short-lived record

nonetheless, beaten by the country’s population

numbers of 2,144,101 persons for 31 March 2014.)

Infrastructure building to facilitate and

accommodate this inflow, therefore, can expect

notable acceleration. Studies released by

Deloitte in July 2013 stated the Qatar Tourism

Authority plans to invest almost $20 billion

on tourism infrastructure as the number of

tourists grows at a rate of 15.9% compounded

annually, expecting to peak at 3.7 million by

2022. Additionally, a report by Kuwait Financial

House in October 2013 estimated that the total

bill for Qatar’s roads and railways will be as

much as $100 billion. While largely considered

a part of the country’s preparation for the

World Cup in 2022 and its longer term Qatar

National Vision 2030 development plan, the

rail projects are also deemed necessary for a

country currently grappling with road congestion

issues as it waits for alternate transport system.

It becomes critical then to ensure the

construction industry in Qatar, considered an

unconventional host for the prestigious FIFA

World Cup, overcomes the challenge of securing

the supply of raw material it needs. Worryingly,

the oil and gas-rich state has yet to put forward

a cohesive programme to suggest it is willing

to tackle a looming bottleneck in supply.

Qatar’s cement industry, for instance, will

have to ramp up its capacities to meet the future

estimated demand in the country. According to a

report titled ‘GCC Cement Sector Quarterly – Q3

2013’ by Global Investment House, the Qatari

government’s demand estimates for 2013 fell short

of the real demand for cement during the period.

The country seems keen on proactively

alleviating this shortage – early in April 2014,

worldcement.com reported that the state-owned

Qatar National Cement Company (QNCC) has

signed a contract, worth $260.9 million with

French company Fives FCB for the construction

of a fifth cement production line. With a capacity

of 5,000 tonne clinker per day, the construction

completion has been scheduled for within 27

months. However, Qatar will have to keep a close

eye on its materials market to ensure the cost

of eliminating such shortages does not lead the

market into a period of dangerously high prices.

“All construction markets have a boom/

bust cycle that affects pricing, and Qatar’s

will be no different,” said Raj Achan, business

development manager of Hilson Moran UAE to

Big Project ME. “Nonetheless, given its small size,

the Qatari construction market will have to be

careful with its operations to ensure it does not

witness a huge spike in the prices of materials.”

The possibility of material shortages

opens up a distinct portion of the Qatari

construction market; foreign suppliers would

naturally find such a market lucrative as it

closes in on its deadline for a leading world

event. This is one of the many factors that

has driven Raj Paryani, general manager of

Mac Al Gurg to set up an office in Qatar.

“On an average, there are fewer suppliers in the

Qatari market than is required to meet the actual

demand,” says Paryani. “For us (Mac Al Gurg), it

made more sense to establish presence in the local

market, which lets us be closer to the contractors

and other operators we are working with.

“The rate of construction in Qatar

“THE PROJECTS IN THE CURRENT MARKET SCENARIO ARE DEFINITELY DRIVEN BY THE GOVERNMENT SECTOR, BUT THIS COULD CHANGE IN THE YEARS TO COME. I SEE SCOPE FOR PPPS TO BE FORMED IN THE COUNTRY”

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makes it essential for us to be in the market

itself, since we can definitely do a lot

more for the market remotely than from

Dubai,” Paryani continues, explaining his

rationale behind setting shop in Qatar.

Market demand considered, there is a far

more decisive force that Paryani claims has

driven his brand into the Qatari market – local

construction operators in Qatar continue

to prefer working with trusted and known

associates who are easily accessible within

the geographic parameters of their market.

“Contractors tend to derive confidence

from local traders they have consistently

worked with, especially during the moments

of heightened activity, when contractors

require added support and crisis management

solutions from their suppliers.”

Achan echoes this view, stating all markets

within the GCC have their own unique

methods of operation. “Each market has its

own set of requirements, and it is key to have

an understanding of the market’s local culture

and the right way of doing things. The same

applies to Qatar, where smooth set-ups require

that the client has excellent relations in the

contractors and consultants it works with.”

To establish such rapport is especially

of consequence in a market that is largely

driven by governmental activities, where

infrastructure-building remains the prerogative

of national bodies such as Ashghal (Public

Works Authority), Qatar Railway Development

Company, Qatar Tourism Authority and so on.

Achan believes this is where the scope

for public-private partnerships (PPPs) in the

country will play a potentially fundamental role

in shaping Qatari construction’s landscape.

“The projects in the current market scenario

are definitely driven by the government sector,

but this could change in the years to come.

“There is huge potential for growth in

the country, and it is an exciting time for

new or foreign companies wishing to enter

and compete in the market. I see scope

for PPPs to be formed in the country.”

However, the case for foreign entries may

be far more complicated than it would seem.

To say Qatar has been scrutinised from all

angles for its treatment of workers would be

understating the situation. Following the release

of a report on the same matter by Amnesty

International, several organisations, such as the

International Trade Union Confederation and

the International Labour Organisation have

critiqued Qatar’s non-implementation of its

labour laws, especially against contractors and

other private entities which are equally party

to the committing of reported human rights’

violations. These concerns do not serve the Qatari

construction market well at a time it requires

collaborative efforts to fulfill its commitments

– but they are not the only loopholes in the

country’s governance of its construction market.

“There are small niggles that could evolve

into bigger problems when viewed as part

of the entire construction process,” says

Paryani. “For instance, there have been cases

where a contractor looking to fly in migrant

labourers was specified, by representatives in

government bodies, exactly how many people

they could bring in from each country.

“While this step most definitely would

have had justifiable reasoning behind it,

RISING COSTS, DELAYS CAUSE QATAR TO REDUCE STADIUMS FOR WORLD CUP 2022Qatar recently announced that it will reduce the number of stadiums it plans to build for the 2022 FIFA World Cup by a third as rising costs and delays plague the build up to the event.

According to a Bloomberg news report, Ghanim Al Kuwari, the organising committee’s senior manager for projects, said that following an assessment of needs on the ground, Qatar now

plans to build eight stadiums for the games. The GCC country had originally announced plans for 12 stadiums, including nine new playing fields and three refurbished grounds.

“GIVEN ITS SMALL SIZE, THE QATARI CONSTRUCTION MARKET WILL HAVE TO BE CAREFUL WITH ITS OPERATIONS TO ENSURE IT DOES NOT WITNESS A HUGE SPIKE IN THE PRICES OF MATERIALS”

CANCELLED PLANSQatar recently announced it was scaling back on the number of stadiums it was building for the 2022 World Cup.

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MARKET REVIEW QATAR

QATAR POPULATION – AN OVERVIEWSOURCE: THE WORLD BANK

2009 2010 2011 2012

1,564,082 1,749,713 1,910,902 2,050,514

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Cost Consultancy, Project Management, Claims Management, Development Advisory

1. Msheireb Downtown Doha, Qatar 2.

3. London Olympics, UK 4. Khalifa University, UAE 5. Nakheel Mall and The Palm Tower, UAE

6. Address Residence Fountain View, UAE 7. Shanghai Tower, China

8. Sydney Opera House, Australia 9. Lusail City, Qatar

1 2 3

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RETHINK RENEW

INNOVATE CREATE

6

9

contractors require freedom to operate,

and are likely to be appreciative of a more

liberal policy that does not tightly control

their operations,” Paryani continued.

Achan offers a unique perspective on the

Qatari market, comparing it with the UAE’s to

explain the obvious flaws and scope for potential

in the former. “Construction processes in Qatar

may sometimes take longer when compared

with, say, the UAE, but that is largely due to the

fact that the Emirati market is more evolved than

most its GCC counterparts are,” he explains.

“In terms of legislation, the UAE market is

probably 10 years ahead of its contemporaries.

Having said that, Qatar is definitely making

the required amendments to ensure its

Vision 2030 is optimally achieved, such as

the implementation of Global Sustainability

Assessment System with their projects.”

Qatar’s acceptance of GSAS is pivotal to its

construction industry, as is the formation of

the Qatar Sustainability Assessment System

(QSAS), a set of regulations which extensively

focuses on the environmental efficiency of

all construction in the country. Developed

by the Gulf Organisation for Research and

Development (GORD) in collaboration with TC

Chan Center at the University of Pennsylvania

(USA), QSAS regulations have been undertaken

by the developers of Lusail City in Qatar.

“The acceptance of GSAS is picking up in

Qatar, and the country has implemented parts

of it in some of its developments already,” Achan

explains. “However, it is critical for the market

that it does not consider cost consciousness

as independent of its sustainability targets

and to ensure that both, environmental and

economic sustainability and balance are not

viewed as being exclusive of each other.”

“ALL CONSTRUCTION MARKETS HAVE A BOOM/BUST CYCLE THAT AFFECTS PRICING, AND QATAR’S WILL BE NO DIFFERENT”

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Globally, the viability and applicability of

sustainable lifestyles has been found to largely

depend on the end-users of the country’s

infrastructure, but consumer trends and

habits may be difficult to pin down in Qatar

given the assorted mix that makes up its

population. Harrigan, speaking about resource-

conservation at the conference in December

2013 had pointed out the challenges such

a situation poses for Qatari authorities.

“Today’s population is heavily tilted

towards lesser skilled expat workers,” Harrigan

said. “The demand for services they are

placing is quite different from the demand

that would be placed in future by a larger

Qatari population and population of expats

with high human capital content, with more

women and children,” he continued.

Harrigan’s prediction of future population

composition seems to rely on the assumption

that the number migrant workers in Qatar will

drop following the world cup. However, the

absence of social sustainability regulations to

govern and ensure these labourers are sent back

to their countries of origin, could detriment

to Qatar’s attractiveness to expats who could

be potential residents of the country.

Inviting and accommodating this

population should ideally be a top priority

for the country’s officials, as should be the

facilitation of required services for them,

such as schools, hospitals and so on.

“With the FIFA World Cup in line, there

will definitely be an increase in the number

of people visiting the country,” says Achan.

“Additionally, there will also be an influx of

expats who may choose to reside in Qatar due

to their employment roles with construction

companies operating in the region, such as

foreign contractors and consultants. The

logistics to accommodate these numbers, such

as residential complexes, welfare institutions,

schools and so on is a definite need in the market.

“To that effect, a critical part of the country’s

national vision is to increase the total number

of schools in Qatar,” continues Achan, alluding

to the efforts undertaken by state body Qatar

Foundation. Education is finding amplified

significance in Qatar’s construction plans,

owing largely, one might assume, to the

“THERE IS HUGE POTENTIAL FOR GROWTH IN THE COUNTRY, AND IT IS AN EXCITING TIME FOR NEW OR FOREIGN COMPANIES WISHING TO ENTER AND COMPETE IN THE MARKET”

THE DARK SIDE OF MIGRATIONIn November 2013, Amnesty International released a report, titled ‘The Dark Side of Migration’, detailing cases of labour abuse discovered across Qatar’s construction sites.

The 169-page study was based on interviews with labourers, employers and government officials. Documented abuses in the report included non-payment of wages, rampant spread of the kafala system (which notably includes the legally-prohibited process of confiscating workers’ passports), hazardous working conditions and the provision of ‘squalid accommodation’. “Construction companies and the Qatari authorities alike are failing migrant workers,” Salil Shetty, secretary-general of Amnesty International had said at the time. “Employers have displayed an appalling disregard for the basic human rights of migrant workers. Many are taking advantage of a permissive environment and lax enforcement of labour protections to exploit construction workers.”

population rise of both, nationals and expats

in the country – according to reports by local

news agency Doha News, Ashghal had, in July

2013, promised to complete the construction

of 44 new educational units by the end of 2014,

and the Qatari annual budget for 2014–2015

accounts for the construction of 85 new schools.

“The country is doing a good job of recognising

and correcting its shortages,” Achan adds.

Qatar looks to be in maintenance mode. To

begin with, the country has to swiftly repair the

reputation of its legislative and judicial bodies,

which, critics have stated, do not fulfil the

promises they have made to the migrants they

welcome to construct their habitat. Furthermore,

the country has to rein in the inherent factors

that impact a market’s economy and industries,

most significant of these being rising prices.

Qatar has to ensure it addresses all these

concerns – and any others that may crop

up in due time – within the eight-year short

deadline it has to build stadiums, roads, rail

networks, residential units, commercial units

and – most crucially – a secure labour market

for an event the world will be watching.

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Untitled-1 1 4/2/14 2:03 PM

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SPECIAL FEATURE GREEN SOLUTIONS BIGPROJECTME.COM

MASDAR CITYThe multi-billion dollar

project aims to be the standard for sustainable

construction in the region.

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SPECIAL FEATURE GREEN SOLUTIONS

With the UAE construction sector migrating towards sustainable practices, Big Project ME investigates how the UAE’s green economy can be funded for the future

PAYING FORSUSTAINABILITY

“We are home to the Mohammed Bin

Rashid Solar Park, IRENA Headquarters

and Masdar City in the UAE. Here, we

actually do what we have promised, and

sustainability is more than just a PR exercise.”

This remark by HE Reem Al Hashimi,

managing director for the Dubai World Expo

2020 Committee, is a succinct reminder

of the sustainability targets that are fast-

becoming the new driving force for various

sectors and industries in the UAE.

Government policies and strategies to

encourage sustainability have paved the way

for investment in the clean technologies sector.

According to a report released by Dubai FDI,

the foreign investment wing of the Department

for Economic Development (DED), the Dubai

Supreme Council of Energy (DSCE)’s Integrated

Energy Strategy is expected to bring a 30%

reduction in carbon emissions by 2030, and the

Mohammed Bin Rashid Solar Park is expected to

produce 1,000MW of energy once all its phases

achieve full completion in the same year.

The value of building green is slowly being

recognised in the country’s construction market.

This is best evidenced by the recurrence of

sustainability-driven discussions at major

construction events across the country,

such as the World Green Economy Summit,

Cityscape and The Big 5 Shows. While cost-

cutting remains the obvious benefit of green

construction, the deeper concern, regarding fund

procurement for sustainability-driven targets,

persists in the UAE construction market.

Various legislative and financial measures

to regulate business transactions have been

implemented since the market crash of 2009.

They do well to guard the local property and

construction markets against an encore, but the

promotion of sustainability requires that the

construction industry – now building through

BEFORE YOU DESIGN... CHRIS WAN, DESIGN MANAGER AT MASDAR CITY“Three things are important before designing for a project actually begins;

Firstly, get your brief sorted out and bought off by all shareholders. Next, work out a business plan so you understand your budgets and parameters and can design accordingly. Finally, set targets and goals for environmental performance before you start designing. Once you have done this, ensure you stick to the design and do not make frequent amendments and changes – it is the worst thing you can do to a designer who is halfway through his building drawings! We operate in a real world with actual time deadlines and cost constraints to deal with, and even a single change in the design can lead to fluctuations in the entire project’s delivery timeline. Implementation of discipline, from start to finish, is critical to ensure the project does not stagnate or get delayed.

Working with a cost consultant is ideal in such scenarios, especially since they can estimate how much a building will cost if constructed without any sustainability targets – use that budget, and circulate it around your design team as the real budget. With the Siemens project, we had a cost consultant as part of the decision-making team, who worked with the designers over details such as choice of glass, material, fixtures and other such factors, because it all matters when pricing is concerned. The cost of the project was very closely monitored at all stages, such as concept creation, schematic design, detailed design, construction documentation, pre-tendering estimates and so on.

relatively tighter cash flows – arrives at an

affordable version of green building practices.

“At Masdar City, we stick to the main core

definition of sustainability as revolving around

the three pillars of economic, environmental

and social sustenance,” Chris Wan, design

manager for Masdar City tells Big Project ME.

“We’re very clear when using that model for

our projects and developments,” he asserts.

“If something isn’t economically sustainable,

then by our definition, it isn’t sustainable enough.

In that context, questioning the justifiability of the

premium on sustainability is, in a way, a potential

contradiction, because it seeks to treat costs as

outside of the sphere. We instead view them as

a part and parcel of integrated sustainability.”

Nonetheless, apprehension regarding

the cost of ‘going green’ persists in the UAE

construction industry, pockets of which, when

observed closely, are found to struggle against

their more-resourceful competitors. “The

most common concern about sustainability

remains the premium it is implemented at,”

explains Wan. “But through a series of studies,

lessons learnt and interaction with the industry,

we’ve reached the conclusion that perhaps,

the premium isn’t the real concern after all.

“The question is regarding what approach is

best suited for a given economic model – how

environmental sustainability can be made

commercially viable for a project operating within

the given economical, budgetary or financial

setups should be probed. When you ask the

question that way, it ensures that irrespective

of the project result, it will work within the

economic setup it is meant to,” Wan adds.

The impact of a green industry, it would seem,

varies greatly based on the flow of resource-

transfer it operates with, and the typical top-down

approach is often preferred for the governmental

endorsement it offers. Nevertheless, global green

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building councils have consistently proven

that cohesion between local corporations

can also lead to the establishment – and

achievement – of improved industry standards.

Saeed Alabbar, chairman of the Emirates

Green Building Council (EmiratesGBC) is of

the view that sustainability in the UAE is driven

by both, the public and private sector. “There’s

two sides to it,” he tells Big Project ME.

“Government regulations are definitely

stimulating sustainable real estate development,”

he says, alluding to the Dubai Municipality’s

Green Building Code and Abu Dhabi

Urban Planning Council’s Estidama.

“However, developers are implementing

sustainability out of their own choice too. They

see the added value it offers them, and more

importantly, they have begun to understand that

sustainability does not come at an additional

cost. The understanding that green construction

does not require special funding or financing

is a gradual one,” Alabbar continues.

Both Wan and Alabbar, as design experts

who specialise in the field of energy-efficiency,

are in agreement over a crucial factor

pertaining to sustainability – going down

the green route requires intelligent design

strategies rather than expensive technology.

“We are often asked about the affordable

technologies or methods we employed in the

(recently-launched) Siemens building to achieve the

remarkable statistics and results we did,” says Wan.

“Our principle with the project was to concentrate

on the passive design of the building, and that

includes designing a building which doesn’t rely on

advanced technology to be sustainable,” he says.

“Therefore, we used basic components, such

as solar energy, wind power, good shading,

appropriate orientations and openings,

correct ratio of glass to solid and so on to

ensure there is appropriate optimisation of

the simpler techniques,” continues Wan.

“After running these designs through energy-

modeling tests, we moved to technology-addition,

which by then, was a minimal cost in the bigger

picture. To get the building functioning at its

best in its environment, in a nutshell, depends

on the science of the energy component.”

Alabbar provides a further detailed insight

into the energy-efficiency of the construction

market, stating new projects are already built

with the right amount of diligence to ensure

technology enhancements are kept to their

lowest requirement. “The need for funding could

possibly intensify when the energy-efficiency

of existing buildings has to be improved,

since processes such as retrofitting involve

sufficient investments,” Alabbar explains.

“A certain amount is definitely required to

kick-start the retrofitting project, but funds for

those are sourced from either the developer

undertaking the process, or an external company

the project may have been outsourced to.

“The investors are remunerated from the

savings generated by the implementation of the

retrofit,” continues Alabbar, “and funding for

existing buildings is quickly gaining popularity

in the UAE through the establishment of

sophisticated bodies for the same, such as Etihad

Energy Services (Etihad Esco) in Dubai.”

Clearly, the UAE seems to have found a

balanced mélange of public and private sector

investments to drive the country’s sustainability

targets for both, the Expo 2020 and its Vision 2030

plan. The influx of international construction

companies has buoyed the sustainability-

quotient of the UAE’s private sector, and Alabbar

intends to further incorporate the country’s

SMEs into the industry’s green movement.

Remarkably, the chairman of the Emirates

Green Building Council is confident that the

private sector will sustain its transition towards

greener operations, with or without any potential

subsidies from the federal government.

“As an industry, we shouldn’t be

looking to subsidies as something we

absolutely need,” Alabbar opines.

“Sustainable products and techniques will

develop according to the market demand for

them, and we shouldn’t be advocating to subsidise

elements – such as eco-friendly products or

retrofitting – when we can instead promote them.

“Eventually, a proposed green technology

or product will not only survive, but also

thrive in the market if it is economically

sustainable,” Alabbar predicts confidently.

5 MINUTES WITH JENS NIELSEN, PARTNER, WORLD CLIMATEGlobally, what are the requirements for creating green economies?For a greener world to happen, we

simply need to work together as partners. Change today will not happen unless you involve the nation states that make the regulation; the regions, cities and utilities that implement and run our infrastructure and facilities; the private sector that provides the technology and the know-how for new projects and innovation; the finance sector that has the funding to scale initiatives so they become impactful; and the consumer and the citizen whom we all in the end are accountable to.

What are the hurdles associated with the acceptance of green economies?There is a commercial uncertainty associated with green talk, especially when people say green growth is good growth. Rather than a ‘do-not’ approach, we need a positive one that promotes innovation and self-improvisation – there needs to be a bigger acceptance of what the starting point for each entity looking to go green is.

Is it ideal to drive sustainability targets through government efforts?You want growth, but not all growth is green. It’s very hard to take some of the fast-expanding countries in the world, like China, Indonesia or South Africa and tell them to, say, build green – with populations who don’t even have access to housing, green housing becomes an illogical demand placed on them. Growth by itself comes before green growth, so to pursue it in a top-down governmental way is quite challenging.

How can the private sector encourage sustainability?Big companies have the appeal to take the lead, besides just through regulating their supply chains, in terms of financing green projects. There’s a lot of inertia in the market because it’s been outside our normal way of looking at things; that is why, big companies have to show and lead the way. Generally, shortsightedness and competition make it difficult to separate profiteering from business operations. Nevertheless, there needs to be a stronger push towards foresightedness, and this is what the UN has been trying to work on too.

“IF SOMETHING ISN’T ECONOMICALLY SUSTAINABLE, THEN BY OUR DEFINITION, IT ISN’T SUSTAINABLE ENOUGH”

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SPECIAL FEATURE GREEN CONTRACTORS BIGPROJECTME.COM

As the UAE construction market strives to improve its sustainability quotient,Big Project ME examines how contractors can contribute to a green project

CAN CONTRACTORS BUILD GREEN?

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SPECIAL FEATURE GREEN CONTRACTORS

In a landmark move, Saudi Arabia plans to

convert at least 90,000 mosques across the

Kingdom into environment-friendly structures,

paving the way for sustainable products

and techniques into its construction market.

Faisal Al-Fadl, the secretary-general of the

Saudi Green Building Forum has said that he

believes green building practices can reduce

electricity consumption in mosques by up to 80%.

He adds that when these practices are coupled

with the deployment of appropriate filtration

systems, projects can reduce the consumption

of water and carbon emissions by 30-40% each.

This development follows the announcement

of significant construction progress on what

is being termed as the first ever eco-friendly

mosque in Dubai. Additionally, development

has been reported on various sustainability-

driven projects across the emirate, such as the

Silicon Park project in Dubai Silicon Oasis, and

Sustainable City development in Dubailand.

Crucial to achieving the sustainability targets

set by the developers of these projects will be

the contractors involved in their construction.

In their role as on-site decision-makers,

contractors can decisively enhance – or debase

– the eventual ‘green’ quotient of a project.

“Contractors have control of the construction

process,” says Jeff Willis, associate director for

Arup, based out of Dubai. “If they (contractors)

don’t build appropriately, with the right

equipment or with the right practices, the

quality of the end product will suffer.

“This can also happen if the contractor

uses unsustainable products or practices to

reduce construction costs, whether by his

own will or the client’s,” Willis continues. “It is

therefore critical that the contractor implements

the given standards to provide the quality

required – in both tools and techniques – for

sustainable project delivery to occur.”

Willis’ views are a reminder that contractor

practices cannot be viewed as completely

independent of client or consultant decisions.

Traditional or modern, the hierarchy of an

ideal construction process begins with the

developer, whose extent of involvement – through

consultant teams, budgets, deadlines and

so on – often impacts contractor operations.

“Everybody involved in the project faces their

own set of deadlines,” explains Willis. “Generally,

parties working closely with the client can

considerably impact the construction process.

“The involvement of the client largely dictates

how the project moves, but all timelines and

schedules have to be achievable and realistic.

Other variables, such as product price, also impact

costs. If the project manager or client insists a

particular product be utilised in the project, then

the contractor is likely to be affected by this.”

Willis is not alone in his belief that

sustainability results and returns from a project

are largely the result of joint efforts. Bjorn Viedge,

commercial manager of Alemco Dubai echoes

the need for responsibility-sharing where

sustainability is concerned. “As subcontractors,”

Viedge explains, “we find that the challenge

with green contracting is that in nine out of

every 10 projects, the sustainability focus is

generated by the client team, comprising of

architects, consultants, or other such parties.

“Contractors at any level follow a specific

set of rules, which in a document, include the

specifications and set of drawings for the structure.

A developer will usually sit with his own design

team, architects, consultants and so on while

deciding to create a sustainable structure.

“At a very early stage in the construction

lifecycle, this client team decides to make the

project ‘green’,” Viedge continues. Often, such

decisions taken early on by client teams impact

contractors at a later stage, when the real building

activities have to be sourced, accounted for,

commenced and appropriately completed

in accordance with specified standards.

“Let’s say I construct two buildings with the

identical designs and methods, except one is

driven by green initiatives and the other isn’t.

Chances are good that the latter will be far

cheaper, even if viewed purely from the MEP

perspective, because the scope for operations in

this structure will eliminate the need to source

sustainable building materials,” Viedge explains.

Broadly viewed, it would appear contractors

are in a position to enhance a project’s

sustainability quotient in more ways than one

– while intelligent practices employed on-site,

such as waste-elimination or improved safety

measures can minimise the potential adverse

effects of construction, it is the more intrinsic

procurement process – which contractors both,

control and operate – that may increase the overall

sustainability value of a given construction market.

“The concern regarding sustainable

construction in the UAE and GCC markets is the

lack of a solid green supply chain,” Willis rues.

“The building materials required to promote and

enhance sustainability are likely to be imported,

and importing them increases costs over locally-

produced cheaper, but less sustainable products.

“The contractor may be inclined to use a more

sustainable or environment-friendly building

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SPECIAL FEATURE GREEN CONTRACTORS BIGPROJECTME.COM

element for his project, but if his budget does

not permit him that leeway, then there are not

many options he is left with in that scenario,”

Willis explains. He is, nonetheless, optimistic

about the UAE’s supply market – one that is the

product of a fallen market resurrecting with better

foundations, credited largely to the government

regulations and legislations that drive it.

“These legislations also drive contractors

towards seeking out sustainable building

materials for their projects. The market supply

for green products can only sustain and thrive if

an efficient and solid chain for them is created.”

While Willis’ observations may convince one

of the seemingly marginal influence contractors

can have on the supply chain, Viedge believes

there is more a contracting firm can do to ensure

supply chains are steered towards economically

and environmentally sustainable practices.

“In a way, it may be said contractors drive

the supply chain,” Viedge clarifies. “However,

a corresponding argument is that sustainable

products do exist in the market, but to

competitively price them is the challenge. As

contractors, then, it is in our capacity to engage

with the supply chain and make for sustainable

products to make their way into the market at

affordable rates. Should they reach optimal

levels of pricing, the market will deviate towards

using them – but if they are more expensive

than the typical existing products, it is natural

tendency to go for the cost-effective solution.

“If as a contractor, I won a tender and offered

the developer a ‘green’ alternative to the existing

product, irrespective of what his stand on

sustainable construction is, his first question

would be regarding the price of the new option,”

Viedge theorises. “If there is no – or a negligible –

difference in the price, the developer is likely to at

least consider the sustainable option. However, if

the cost of the green product is almost twice the

original, he will almost certainly shoot it down!”

Clearly, the case for sustainable contracting

includes more than just building practices.

Sustainability targets require that clients

accommodate sufficient budgets to not only

justify their decision to go green, but also provide

contractors with satisfactory resources.

“For contractors at any level, there are certainly

elements which affect sustainability and are out

of our control,” explains Viedge, “but there are

equally other such elements which are within our

control and should be optimised accordingly.”

“CONTRACTORS HAVE CONTROL OF THE CONSTRUCTION PROCESS. IF THEY DON’T BUILD APPROPRIATELY, WITH THE RIGHT EQUIPMENT OR WITH THE RIGHT PRACTICES, THE QUALITY OF THE END PRODUCT WILL SUFFER”

EXPERT OPINIONSBig Project ME asks the sustainability experts for their views on the sustainability market in the UAE

WHY WASTE?“My interpretation of sustainability is to reduce the human impact on an environment, and even simple on-site measures, such as reducing waste and water consumption go a long way in ensuring it is followed. Very often, products are shipped in from other countries, and contractors are in a good position to recycle the paper or wooden packaging these products arrive in. These day-to-day measures ensure minimal wastage occurs on-site.”Bjorn Viedge, commercial manager, Alemco Dubai

SUPPLIER SPEAKS“The problem with many of the region’s contractors is not only the lack of complete environmental consciousness, but also a total deviation towards price consciousness – however, this is driven by their employers, such as clients, developers, builders, owners and so on. These are the people we need to target as a green supplier. Most contractors have very little choice due to the limited budgets they have to complete their work within. It is a real shame that budgets on windows, doors and so on are often the first to be slashed when project costs overrun. Most projects overrun in costs of both time and money, and project managers along with their contractors are forced to make savings. They all mean well, but the original goal of ‘green’ building is one of the first things to suffer in order to save money.”Guy Dawson, general manager, Origin Dubai

ALL ABOUT THE ATTITUDE“The success or failure of a project, and its sustainability objectives, depends greatly on that all project parties cooperate and buy-into outcomes to be achieved. A contractor is the direct interface with the supplier market. It is therefore critical to engage the contractors in the debate about sustainability. Attitudes are a big part of embracing the change which comes with sustainability. Contractors who decided to embrace sustainability have found ways to deliver on sustainability targets easily and cost effectively, and they now do this with pleasure. No party involved in the construction process can individually bring sustainability to the board, and it is critical to ensure contractors – with their knowledge of easy and cost-effective products and techniques – are thus involved in important sustainability decisions.”Huda Shaka, associate, Arup Dubai

LEGISLATIVE PROMISESustainability experts say that the government legislation for sustainability will drive the market forwards.

Middle East Ad SP523.indd 3 03/12/2013 08:23:16

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FOCUS MEP BIGPROJECTME.COM

AHEAD OF THE GAMEMEP contractors have been

keen proponents of green building techniques long

before the new green building codes were released.

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FOCUS MEP

Big Project ME speaks to leading MEP contractors to find out how the industry is ready to push forward with renewed impetus thanks to the introduction of the green building codes

ON ALEARNING CURVE

At the start of this year, Dubai Municipality

made the announcement that a set of new

green building regulations would be made

mandatory for construction projects in the

emirate. This announcement followed a successful

test phase – which began in 2010 – that saw 40

government buildings successfully implement the

new law prior to it being rolled out across Dubai.

Although HE Engineer Abdulla Moahmmed

Rafia, assistant director general and chairman of

the sustainability committee, has expressed his

satisfaction at the positive reaction to the green

building codes, there has been some consternation

amongst contractors in the construction industry.

Unfortunately, despite ample warnings,

a number of contractors have simply been

unprepared for what the regulations demand

of them and their capabilities. As a result there

has been a significant underswell of reaction

as the laggards scramble to get up to speed.

However, one sector of construction contractors

has not been caught so unawares. In fact, it

could be argued that they were ahead of the

curve, and that they were simply waiting for the

rest of the industry to catch up with them.

This sector is of course, the MEP industry.

Although it rarely receives the recognition

it deserves, the Mechanical, Electrical and

Plumbing sector has always been at the forefront

of sustainability efforts. Perhaps this is a

consequence of the environment it works in.

With water resources in the GCC already scarce,

MEP contractors have always looked to be proactive

with the systems they install to help maximise

performance and minimise wastage. To this end,

they looked to the West, where sustainability

measures have long since been embraced.

As such, the top level MEP contractors in

the region welcomed the moves by the Dubai

Municipality and the Abu Dhabi government to

introduce the green building regulations, confident

in their ability to meet up to the standards required.

Despite this optimism, there remains

a few concerns that must be addressed

before any true progress is made, these

experts tell Big Project Middle East.“The biggest issue for us is to deal with

unqualified MEP contractors in the market,”

says Burak Kizilhan, board member at AE

Arma Elektropanç, a Turkish MEP giant

operating on projects throughout the GCC.

“They drop the prices surprisingly low and

sometimes there are companies who signed

the projects with our dry cost. This kind of

competition is making life very difficult for

MEP contractors,” he explains further.

Masood Raza, the general manager of

Jumbo Engineering, is quick to agree with

Kizilhan, expressing his concerns about

how this could impact the implementation

of the green building codes for MEP.

“Because of the green building regulations,

where you have to comply with Estidama,

you’re often competing with other parties

who don’t even know what Estidama is all

about. So in that case, you’re done. You

don’t know where the prices are going.”

However, Nathan Hanns, the general manager

of ALEMCO, the MEP arm of ALEC, says that

it’s not all doom and gloom. He points out that

every industry has its issues, but it’s up to the

industry to be positive and drive change through

as it ultimately benefits everyone involved.

“Every industry has its problems and it is

easy to be judgemental. I personally believe

the best method for ensuring that sustainable

practices are put in place is through governance

and ensuring that the construction regulations

are in place. The better the governance, the

better the end product, as simple as that.”

“A major risk for subcontractors, as a business,

is going to be the growth in the GCC region.

With the growth that is forecasted for 2020 and

2022 occurring in various regions within the

GCC, there is going to be a shortfall of skilled

resources. The key to our success is our resources.

I think over the next two to three years, it’s

going to be demanding for companies to get

the skills and resources that they require.”

With this in mind, there are a number of

methods to address the challenges that loom

ahead. While Raza firmly believes that education

will benefit all parties, he does concede that

things have become a little more complex.

“Definitely, we need more education at all

levels, but I think that will grow now because

both the major emirates have got existing and

very clear regulations. Things will definitely

improve, I’m very positive about that. Education

is very important, investors need to know

that you have to be sustainable while you’re

constructing different projects,” he asserts to

Big Project ME during a telephone interview.

“(But) what we’re seeing now is that the

challenges are going to increase. There’s going to

be more design challenges and the job of MEP

contractors will become quite critical. Things

“THE FACT IS THAT MEP COMES LAST IN THE CYCLE OF THE PROJECT. IT’S THE LAST TO BE AWARDED, BUT THE EXPECTATIONS ARE VERY HIGH FOR THAT”

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have changed and consultants have started taking

on board all the requirements and being very

specific about what they want. So it’s going to be

very challenging for contractors to price things,

if you’re not aware of what you have to do.”

Following on from that train of thought, Burak

Kizilhan says that he expects Expo 2020 and the

2022 FIFA World Cup to have an enormous impact

on the construction market in the region, which will

in turn bring bigger challenges to the MEP industry.

“The importance of qualified MEP contractors

is now vital in order to meet the project deadline

and keep the client happy. In addition to that, the

proportion of MEP works is getting increased as

the magnitude of the construction projects is so

big. That is the reason why the pressure on MEP

contractors is higher than usual,” he warns.

Given the increase in pressure that both

Kizilhan and Raza warn of, perhaps more

can be done to address the situation MEP

contractors find themselves facing? Nathan

Hanns certainly thinks so, as he explains further.

“You have to look at the methods of how MEP

contractors are generally appointed on projects.

The consultants will develop the design based on

a concept design. The governance will determine

the benchmarks and then clients will adapt the

benchmarks either in line with the governance or

higher to suit their end product requirements.”

“So when we tender for a project, we could

be tendering with the governance in place, as

well as any additional project sustainability

targets. The tender will then go to the open

market. The open market conditions have

been quite severe over the last three to four

years and there has been a lot of price cutting

and value engineering,” Hanns elaborates.

“When the subcontractor is finally appointed,

the governance still remains. So the pressure

is on the subcontractor to make sure that the

systems conform to the governance and to

design that has been specified in the contract.

So I’d say that yes, the pressure is there, but

the budgets are not necessarily there.”

“I think the government codes enforce a

certain level, but the developer or client are

selecting the type and ratings of their buildings

which will determine the systems that we

eventually install into a building. The design

is carried out in line with the developer or

client selection process. We are then at the

end stage of the construction process.”

“We can only control the selection of the

equipment and the materials as well as where we

source the materials from and how we construct

it and set it into operation. What we’ve seen

in the past is not necessarily the focus of the

end-user. The building design and systems are

sometimes more cost driven rather than efficiency

driven. The intention can also be diluted through

the tender process and through the tender

negotiation which will affect the final product.”

“There is a change in the market towards

more efficient buildings, but better change

CULTURAL CONTRACTDrake & Scull Kuwait (DSI Kuwait), a subsidiary of Drake & Scull International PJSC (DSI), has won a major engineering contract worth $18.5 million for Sheikh Jaber Al Ahmad Cultural Center in Kuwait City.

The company further revealed that it has also bagged an MEP deal worth Dhs60m for a healthcare facility in Shuwaikh and two commercial developments in Al-Qebla.

Under the terms of the first agreement, DSI Kuwait will undertake supply, installation, testing and commissioning of plumbing and fire fighting works, including defect liability to be completed by October 2015. Located near Al Salam Palace in the heart of the Kuwait City, the Sheikh Jaber Al Ahmad Cultural Center will be a major landmark, reflecting the evolution of Kuwaiti cultural and heritage landscape.

It would be equipped with state-of-the-art facilities required to organise a wide range of cultural activities.

DSI Kuwait will also carry out the MEP works for two commercial developments in Al-Qebla area of Kuwait. The scope of work includes renovation and maintenance along with replacement of chillers, electric main panels and boards. Both developments are already under progress and will be delivered by June 2015. The company has also bagged an MEP contract for a healthcare facility in Shuwaikh.

The scope of the project involves heating ventilating and air conditioning (HVAC) along with plumbing and firefighting works. The work for this healthcare facility is already in advance stages and will be handed over by March 2015.

“I THINK OVER THE NEXT TWO TO THREE YEARS, IT’S GOING TO BE DEMANDING FOR COMPANIES TO GET THE SKILLS AND RESOURCES THAT THEY REQUIRE”

QUALITY CONTROLUnqualified contractors is a major bugbear

for MEP contractors operating in the region.

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52 MAY 2014MID

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can be produced in the market by governance.

At the end of the day, governance changes

what we do,” Hanns asserts strongly.

This is an area where Masood Raza says he’s

in complete agreement, pointing out that there

are often unreasonable expectations facing

MEP contractors, given that they’re involved

late in the project construction lifecycle.

“We have identified two or three things

actually that are very interesting. The fact

is that MEP comes last in the cycle of the

project. It’s the last to be awarded, but the

expectations are very high for that.”

“Not only are they very high, but you have to

finish it before they handover the building for

inspection. So we face this challenge almost every

day as an MEP contractor. You’re the last on board

and you have to finish the first. Sometimes it’s

very difficult to spend more time in design and

planning, which is, in my opinion, the best thing (to

do). That is where the project either wins or fails.”

“Inherently, being an MEP contractor is a

very high pressure business. But I still feel that in

addition, there’s always pressure from investors

because they want to beat the inflated prices,

so they want everything to finish tomorrow,

because they want to finish the project faster.

“As a result they spend less time on designing

and planning and so that partially designed

project comes to the MEP contractor, and they

have to fill in the gaps almost everywhere and that

becomes more challenging to us,” he muses.

So what lies ahead for the MEP industry, given

the challenges that have been outlined? While

all three experts are generally positive about

their outlooks for the industry, they do say that

greater inroads could be made, particularly in the

development and adoption of new technology.

“Well I think there’s different governances that

are coming out that are affecting us in different

ways,” says Hanns. “In Dubai we are focused on

the Etihad and ESCO sector of works, which is a

great initiative based on the refurbishment and

upgrade of existing facilities to obtain energy

savings. We can see the benefits of that.”

“There are a lot of buildings in the UAE that

have been built within the last ten years. The

majority of these buildings have been constructed

with the new building codes and have relatively

advanced building systems, however the older

buildings are outdated and the energy efficiencies

of the buildings can be easily increased. So that’s

something new we have to focus on,” he points out.

“Some of the projects that we operate on

are refurbishment-based which includes the

upgrading of building systems and facilities

and changing to more efficient installations.

We see a lot of drive in the market in this

direction and there is a lot of opportunity

for increased efficiency by end-users.”

Masood Raza adds that with the new green

building codes, there will be new development

in areas like VRV and VRF systems, while fresh

air treatment will increase – with the focus

on proper recirculation and heat recovery.

“We see that intelligent and LED lighting

systems will be used more and more. There’ll be

recycling units coming into play. We’re already

looking at grey water treatment systems for

some of our buildings,” he explains. “There’ll

be intelligent control systems and there’ll be

new innovations coming through. It’s a very

exciting period of construction business.”

“We’ve been very lucky with companies

like DEWA and Dubai Municipality affiliated

companies. All of them are government run bodies

that enforce green technology. So I would say that

if we’re not ahead, we’re on the learning curve.”

REDEVELOPMENT WORKSDrake and Scull International has signed a $29.9 million contract for the complete MEP works for the redevelopment of the Mall of the Emirates.

Awarded by Khansaheb Civil Engineering LLC, the main contractor on the project, the contract will see DSI procure, install, test and commission all the MEP works within the shopping mall, the refurbishment of which is expected to be completed by 2015.

Located off Dubai’s Sheikh Zayed Road, the Mall of the Emirates has begun a multi-stage redevelopment programme which is estimated to cost $272.2 million.

The redevelopment projects for Mall of the Emirates will include a new fashion district, luxury retail and

a sports and leisure precinct. Furthermore, the mall’s cinemas will be expanded, while ‘unique dining concepts’ will also be developed, a statement said.

Work on the project will be undertaken in phases, with work on Phase I already underway.

“DSI is well established in the UAE as market leaders in the Engineering business and we will continue our efforts to help shape Dubai and the UAE’s skyline.

“With our expertise in MEP works and General Contracting, cutting edge technologies and vast resources, DSI is well-positioned to undertake significant construction and infrastructure projects as Dubai gears up to host the 2020 World Expo,” said

Khaldoon Tabari, CEO and vice-chairman of the regional MEP contractor.

Over the last year, the company has been awarded a number of high profile projects across the UAE, with the latest being a $109.7 million joint venture agreement between DSI and Habtoor Leighton Specon to provide MEP works for the Al Habtoor City in Dubai.

In the fourth quarter of 2013, the contractor respectively won a $112.98 million contract and a $63.43 million contract to complete MEP works at the massive Louvre Museum Abu Dhabi project on Saadiyat Island and on the Fairmont Hotel project in Abu Dhabi.

“THE IMPORTANCE OF QUALIFIED MEP CONTRACTORS IS NOW VITAL IN ORDER TO MEET THE PROJECT DEADLINE AND KEEP THE CLIENT HAPPY”

PRESSURE IS ONBurak Kizilhan says

that as the magnitude of projects increase, so

does the pressure on MEP contractors.

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COMMENT BENTLEY SYSTEMS BIGPROJECTME.COM

The UK government’s decision to

require that all suppliers involved in

public sector construction projects

use Building Information Modelling

(BIM) tools and techniques by 2016 is to be

applauded. The intention is to drive better

value from capital investment and realise a 20%

reduction in lifetime costs, whilst supporting

environmental commitments by facilitating

a more integrated approach to design. It is

also about changing the culture between

the client and the rest of the supply chain,

replacing the traditional, rather adversarial

business practices with a collaborative

approach that should also drive innovation.

However, misinformation is rife. BIM is not

just about 3D data but about creating a holistic

information resource that also includes 2D data

sources, documents, spreadsheets, and more.

I believe the key to realising the government’s

BIM vision is to create simple, effective

cooperation among the design, construction and

operation aspects of the infrastructure lifecycle.

Overcoming these traditional silos provides a

chance to reduce duplication, minimise errors,

streamline processes and facilitate collaboration.

However, while the majority of new bids

now demand some level of BIM compliance,

requirements are often opaque at best. Let’s

set the record straight: BIM, when done

correctly, is about information sharing enabled

by information mobility (across engineering

disciplines and the infrastructure lifecycle).

It provides contractors and owner operators

with access to key design data that can be used

to transform effectiveness throughout the

construction and operations processes. Yes,

it drives better use of 3D across the industry,

but not only 3D. 2D data remains important,

as does information held in documents,

BIM – Business Enabler or Technology Red Herring?Bentley Systems' Neville Glanville explains why it is so important for BIM providers to create systems that will push forward the concepts of simple and effective cooperation between all stakeholders involved in a project

NEVILLE GLANVILLE

"BIM IS ULTIMATELY ABOUT CREATING AN ASSET MODEL FROM DAY ONE THAT CAN BE USED CONSISTENTLY THROUGHOUT THE PROJECT TO DRIVE EFFICIENCIES AND IMPROVE COLLABORATION"

KEEPING THINGS CLEARBIM is not just about 3D data, but also about creating a 'holistic information resource' for the entire project.

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COMMENT BENTLEY SYSTEMS

spreadsheets, and other databases, all of

which contribute to a holistic BIM approach.

BIM is ultimately about creating an

asset model from day one that can be used

consistently throughout the project to drive

efficiencies and improve collaboration.

Indeed, BIM also encompasses information

management as much as information modelling.

It enables a contractor to feed design information

into project planning tools and resolve potential

conflicts before arriving on site. It also empowers

the sharing of space information with facilities

management teams before the building goes live

to drive effective up-front planning, as well as

the sharing of other crucial design, engineering,

Neville Glanville is industry sales director,

Bentley Systems.

and construction information that can later

be used to help drive cost-effective operations

decision making and renovations work.

Leveraging a collaborative platform and

technology to share and integrate information,

within an incremental approach that

accommodates all of the specialised design

simulation and analysis software best suited for

each project role, will best enable the industry to

achieve the desired widespread adoption of BIM.

The government’s stance on BIM is to be

commended. Demanding Level 2 compliance

by 2016 is pragmatic and achievable and

promotes the very real promise of intelligent

infrastructure that is better performing in

terms of its energy efficiency, resilience to

natural and man-made disasters, safety,

and cost-efficiency. However, while industry

adoption and interest are positive, it is

essential that organisations take a step back

and truly assess information requirements.

BIM is a business process not a technology.

With the right workflow and processes defined,

BIM enables organisations to improve the

quality of building design, reduce costs

and achieve the collaborative workflows

required to drive true innovation. n

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COMMENT FAITHFUL + GOULD BIGPROJECTME.COM

As the GCC region’s second largest

sector, retail makes a major contribu-

tion to economic diversification and

development. The retail culture has

evolved from traditional outlets to today’s

large shopping malls, hypermarkets and

supermarkets, with an influx of premium

and luxury brands to the region. Increased

populations, urbanisation, indigenous and

expatriate wealth, strong household consump-

tion and a growing tourism sector continue

to provide ideal conditions for growth.

Buyer’s marketBusiness is booming for UAE shopping malls, with retail one of the fastest growing sectors in the Middle East, remaining buoyant during the global downturn and with plenty of scope for future activity

DONAL O’LEARY

The UAE has led the way in this sector

and the more mature markets like Dubai

still have ample opportunity for neigh-

bourhood malls and mini-malls. As the

population grows further and new leisure

attractions draw more tourists in, additional

large-scale shopping is likely to develop.

Abu Dhabi has traditionally lagged behind,

with high spenders typically heading for Dubai

for shopping trips, but this is now starting to

change. Deerfields Town Square and The Gal-

leria have opened in Abu Dhabi this year, with

several more in the planning process, amount-

ing to an estimated further 1 million sqm of

retail space between 2013 and 2017. Saudi

Arabia, Qatar and Kuwait are also buoyant.

The arrival of international brands contin-

ues to drive diversity and intensify competi-

tion for space in the premier malls. This is no

longer the place for bargains and the market

therefore focuses on its luxury offerings and

lifestyle positioning. In a region where the cli-

mate can limit outdoor entertainment, visiting

the mall has become a recreational activity.

The larger developments target broad

lifestyle appeal, going beyond shopping to

improve the total mall experience. They act as

a social hub for families and friends, offer-

ing air-conditioned environments with food

& beverage, cinemas, bowling, etc. These

leisure and entertainment offers are core

drivers of retail footfall and have become

more competitive and ambitious, with the

more innovative attractions ranging from

skiing and aquariums to indoor sky diving

and children’s educational play centres.

In this competitive arena, developers dif-

ferentiate on scale, quality, accessibility and

the introduction of new brands to the locality.

Anchor stores are especially important

for the major shopping malls, as dem-

onstrated by the recent arrival of both

Bloomingdales and House of Fraser in the

“THIS IS NO LONGER THE PLACE FOR BARGAINS AND THE MARKET THEREFORE FOCUSES ON ITS LUXURY OFFERINGS AND LIFESTYLE POSITIONING”

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UAE capital of Abu Dhabi, the first interna-

tional store for both of the retail giants.

In more mature markets, a mall’s popular-

ity decreases over time as new offers appear.

Footfall lessens, tenant mix decreases and the

mall typically slides into a secondary mar-

ket position. We are now seeing a lot more

refurbishments coming to market (in Dubai,

for example), with owners often adding new

leisure offers to revitalise their business propo-

sition and recapture/retain their customers.

Faithful + Gould has developed a hub of

specialist expertise from our Dubai office,

collaborating with our regional offices to work

with clients in each country. Our strengths in-

clude an excellent understanding of the Middle

East retail sector, which enables us to support

Donal O’Leary is the director of Commercial

Services for Faithful + Gould Middle East.

He is based in Dubai and can be reached on

+971 4 405 9100 for further enquiries

clients from the earliest speculative stages.

Clients often need very early estimates where

only a piece of land exists, and we are able to

provide these together with ideas for the build-

ing, infrastructure and car-parking planning.

We also work with tenants, managing

enhancements to meet corporate global

brand standards in smaller units as well as

large department stores. We leverage buy-

ing efficiencies to lower overall costs and also

review fit-out timescales, as even a week’s

saving on a small store brings an earlier

return on investment. Increasingly we sup-

port global clients in their multiple locations,

including global brands like Nokia and RBS.

We provide a full pre- and post-contract

project and commercial management service,

for new land owners as well as experienced

developers. Many clients ask us to help them

verify their budgets in order to obtain fund-

ing and to calculate projected profits. We

can also bring lease advisors on board.

Our understanding of the sector is under-

pinned by solid benchmarking data which

enables us to challenge and interrogate develop-

ment plans, ensuring that our clients’ interests

are protected and best value is achieved. Our

track record includes a range of retail and mixed

use developments throughout the region. n

INCREASED COMPETITIONThe arrival of international

brands has increased competition in the GCC retail arena.

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TENDERS BIGPROJECTME.COM

POSTAL/ZIP CODE 282PHONE (+968) 2685 1000FAX (+968) 2685 1211EMAIL [email protected] www.orpic.omDESCRIPTION Engineering, Procurement and Construction (EPC) contract to build a Petrochemicals Complex

PROJECT NATURAL GAS PIPELINE PROJECT - BADRA OIL FIELD

BUDGET $150,000,000

PROJECT NUMBER MPP2914-IQREGION Baghdad, IraqCLIENT Gazprom Neft Badra B.V (Iraq) ADDRESS Al Waziriya District, Mahala 301,EMAIL [email protected] Engineering, Procurement and Construction (EPC) contract to build an 18-inch, 105-kilometer-long natural gas pipelinePERIOD 2015 STATUS Current Project

PROJECT KNOWLEDGE CENTERPROJECT - KING ABDUL AZIZ CITY FORSCIENCE & TECHNOLOGY

BUDGET $135,000,000

PROJECT NUMBER ZPR1282-SAREGION Riyadh, Saudi ArabiaCLIENT King Abdulaziz City for Science & Technology (Saudi Arabia)POSTAL/ZIP CODE 6086PHONE (+966-1) 481 4329 4453/488 3555 FAX (+966-1) 481 6730WEBSITE www.kasct.edu.saDESCRIPTION Construction of a new Knowledge Center comprising 18 floors covering a total area of 47,000sqmPERIOD 2016 STATUS Current Project

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

INTEGRATED ESTIMATING, PROJECT CONTROL

AND ERP SOLUTION FOR CONTRACTORS

TOP TENDERS

PROJECT BAHRAIN - SAUDI ARABIA RAILWAY LINE PROJECT

BUDGET $5,000,000,000

PROJECT NUMBER MPP2768-BREGION BahrainCLIENT Bahrain Government POSTAL/ZIP CODE 26060PHONE (+973) 1774 1144FAX (+973) 1774 0048WEBSITE www.capital.gov.bhDESCRIPTION Construction of a 90KM-long railway line linking Bahrain and Saudi ArabiaSTATUS New Tender

PROJECT HEAVY OIL PRODUCTION FACILITIES PROJECT - RATQA FIELD

BUDGET $4,300,000,000

PROJECT NUMBER MPP1409-KREGION Ahmadi, KuwaitCLIENT Kuwait Oil Company (KOC)

POSTAL/ZIP CODE 9758PHONE (+965) 2398 9111FAX (+965) 2398 3661EMAIL [email protected] www.kockw.comDESCRIPTION Engineering, Procurement and Construction (EPC) contract to build new heavy oil production facilities with capacity to produce 60,000 barrels per day (b/d)TENDER COST $180 CLOSING DATE May 18, 2014 PERIOD 2017 STATUS New Tender

PROJECT SOHAR PETROCHEMICALS COMPLEX PROJECT

BUDGET $3,600,000,000

PROJECT NUMBER MPP2910-OREGION Sohar, OmanCLIENT Oman Refineries & Petroleum Industries Company (ORPIC)ADDRESS Sohar Industrial Port Area

November 2013

CONSTRUCTION

MIDDLE EAST48

Ten Tips

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UAEPRIVE BY DAMAC TOWERS PROJECT - BURJ KHALIFA

BUDGET $370,000,000PROJECT NUMBER WPR209-UTERRITORY DubaiCLIENT Damac PropertiesADDRESS 4th Floor, Al Moosa Tower II, Sheikh Zayed RoadPOSTAL/ZIP CODE 2195PHONE (+971-4) 332 2005FAX (+971-4) 332 1874EMAIL [email protected] www.damacproperties.com DESCRIPTION Construction of a 30-storey twin tower featuring luxurious stud ios as well as one and two-bedroom serviced hotel apartmentsPERIOD 2016 STATUS New TenderMAIN CONSULTANT Al Turath Engineering Consultants (Dubai)DESIGN CONSULTANT Naga Architects, Designers & Planners FOUNDATIONS, ENABLING & PILING CONTRACTORNational Dewatering & Drainage Services Company LLC (Dubai)TENDER CATEGORIES Hotels, Prestige BuildingsTENDER PRODUCTS High-rise Towers, Hotel Construction, Residential

SHAMAL COMMUNITY PROJECT - JUMEIRAH VILLAGE CIRCLE

PROJECT NUMBER ZPR1310-UTERRITORY DubaiCLIENT Lootah Real Estate Development (Dubai)ADDRESS RashidiyaPOSTAL/ZIP CODE 10631PHONE (+971-4) 285 8223FAX (+971-4) 285 8899EMAIL [email protected] www.lootahgroup.comDESCRIPTION Development of a Residential CommunityPERIOD 2016 STATUS New TenderDESIGN CONSULTANT Arif & Bintoak Consulting Architects & Engineers TENDER CATEGORIES Construction & ContractingTENDER PRODUCTS Community Development, Villas Construction

AL AIN ROYAL HOSPITAL PROJECT

BUDGET $3,000,000PROJECT NUMBER WPR160-UTERRITORY Al AinCLIENT Department of Municipal Affairs - Al Ain Municipality

MIDDLE EAST TENDERS PROVIDED BY

Tel +9712-6348495Web www.MiddleEastTenders.comEmail [email protected]

SPONSORED BY

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

High compressive strength for highest flexibility.Web: www.foamglas.ae Email: [email protected] Dubai office Tel: +9714 434 7140 Doha office Tel: +974 465 5360

Al-Masjid al-Haram or the Grand Mosque surrounds one of Islam’s holiest places, the Kaaba. It is located in the city of Mecca and is the largest mosque in the world. In 2011 Saudi Authorities launched work on a new historic $10.6-billion expansion, increasing its capacity to more than 2.5 million worshippers. The total area of the existing Haram Mosque is 356,000 m2 accommodating 770,000 worshippers. Moreover, other plans were included to expand the mataf (the circumambulation areas around the Holy Kaaba) and provide air-conditioning for all parts of the Grand Mosque. In 2007, the entire mosque was fitted with air conditioning so that worshipers could perform their prayers in comfort. More than 100,000 m2 of the new extension will have FOAMGLAS® boards on the roof to ensure an efficient use of the energy. The high compressive strength of the thermal insulation FOAMGLAS® will enable the use of the roof for the pilgrims and is at the same time the most durable insulation with zero degradation of the thermal performance over generations. FOAMGLAS® can never get wet due to the homogenous and close cell structure which is produced with more than 60% recycling glass.

Flat Roof (accessible to foot traffic)

FOAMGLAS® Insulation

Grand Mosque extension, Mecca, Saudi Arabia

Architect Dar al HandasahConstruction 2012, ongoingApplication FOAMGLAS® FLOOR BOARD T4+, 50 mm, about 125,000 m2, loose laid as inverted roofFinish Marble tiles

Build-up1 Corrugated steel decking2 Reinforced concrete3 Waterproofing membrane4 FOAMGLAS®

FLOORBOARD T4+, 50 mm

5 Separating layer6 Cement-sand mortar

bedding7 Marble tiles, 40 mm. Flat

Roof, accessible to foot traffic

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ADDRESS Jimi DistrictPOSTAL/ZIP CODE 1003PHONE (+971-3) 712 8000FAX (+971-3) 712 8001EMAIL [email protected] www.am.abudhabi.aeDESCRIPTION Construction of a hospital with capacity of 75 beds PERIOD 28/02/2015 STATUS Current ProjectMAIN CONSULTANT Society Technology House Consultant (Abu Dhabi)MAIN ARCHITECT Society Technology House Consultant (Abu Dhabi)DESIGN CONSULTANT Society Technology House Consultant (Abu Dhabi)SPECIALIST CONSULTANT Society Technology House Consultant (Abu Dhabi)INTERIOR DESIGN CONSULTANT Society Technology House Consultant (Abu Dhabi)PLANNING CONSULTANT Society Technology House Consultant (Abu Dhabi)ENGINEERING CONSULTANT Society Technology House Consultant (Abu Dhabi)MAIN CONTRACTOR Cities Building Construction Establishment (Al Ain) TENDER CATEGORIES Medical & Healthcare, Construction & ContractingTENDER PRODUCTS Hospital Construction

RUFI GOLF GREENS TOWER PROJECT - DUBAI SPORTS CITY

BUDGET $26,000,000PROJECT NUMBER WPR186-UTERRITORY Dubai

CLIENT Rufi Real Estate & Construction LLC (Dubai)ADDRESS Galadri Plaza, Baniyas Rd, Al Rigga, Deira Souq, Near Dubai MunicipalityPOSTAL/ZIP CODE 112386PHONE (+971-4) 224 7352FAX (+971-4) 224 7362EMAIL [email protected] www.rufiproperties.com DESCRIPTION Construction of residential and commercial building comprising a basement level, a ground floor, 3 parking levels, 20 additional typical floors and a helipadPERIOD 30/06/2015 STATUS Current Project

MAIN CONSULTANT Dubai Architectural Research Team International - DARTIN (Dubai)MEP CONSULTANT Dubai Architectural Research Team International - DARTIN (Dubai)MAIN CONTRACTOR Cast Construction Company (Dubai)MEP CONTRACTOR Super Style Electromechanical Works LLC (Dubai)TENDER CATEGORIES Prestige BuildingsTENDER PRODUCTS Commercial Buildings, High-rise Towers, Residential Buildings

QATARKATARA TOWERS PROJECT - LUSAIL MARINA DISTRICT

PROJECT NUMBER WPR059-QTERRITORY Doha, QatarCLIENT NAME Katara Hospitality (Qatar)ADDRESS Formerly Qatar National Hotels Company, Katara Hospitality Bldg, C Ring RoadPOSTAL/ZIP CODE 2977PHONE (+974) 4423 7777FAX (+974) 4427 0707EMAIL [email protected] WEBSITE www.katarahospitality.com DESCRIPTION Construction of Katara Towers comprising a luxurious five-star hotel and a luxury hotel, including branded apartments, consisting a total of 614 roomsPERIOD 2017 STATUS New Tender

KHALIFA STADIUM UPGRADE PROJECT

BUDGET $300,000,000 PROJECT NUMBER MPP2164-QTERRITORY Doha, QatarCLIENT NAME Aspire Academy for Sports Excellence (Qatar)CITY Doha PHONE (+974) 4413 6570 / 4413 6219EMAIL [email protected] www.aspire.qaDESCRIPTION Upgrading of an existing Stadium to increase seating capacity to 60,000 spectators from the current 45,000PERIOD 2016




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TENDERS




STATUS Current ProjectMAIN CONSULTANT Dar Al Handasah Consultants (Shair & Partners) – QatarMAIN CONTRACTOR Six Construct Ltd (Qatar)MAIN CONTRACTOR (2) Midmac Contracting Company (Qatar)TENDER CATEGORIES Construction & Contracting, Leisure & EntertainmentTENDER PRODUCTS Sports Complexes

EGYPTSOUTH WEST MELEIHA ONSHORE BLOCK EXPLORATION PROJECT - BLOCK 14

PROJECT NUMBER ZPR1272-ETERRITORY Cairo, EgyptCLIENT NAME Egyptian General

Petroleum Corporation (EGPC)ADDRESS Egyptian General Petroleum Corporation Bldg., Palestine Street, 4th Sector, New Maadi AreaPOSTAL/ZIP CODE 2130PHONE (+20-2) 2703 1438 / 2703 1439 / 2706 5445FAX (+20-2) 2703 1457 EMAIL [email protected] www.egpc.com.egDESCRIPTION Build-own-operate

(BOO) contract for the Exploration of a 2,058km2 onshore block including 8 wellsSTATUS New TenderTENDER CATEGORIES Gas Processing & Distribution, Oilfields & RefineriesTENDER PRODUCTS Gas Exploration & Production, Oilfields Exploration & Development

SAUDI ARABIARABIGH CEMENT PLANT EXPANSION PROJECT

BUDGET $7,000,000,000PROJECT NUMBER ZPR1312-SATERRITORY Jeddah, Saudi ArabiaCLIENT NAME Arabian Cement Company Ltd (Saudi Arabia)ADDRESS Kilometre 14, Medina RoadPOSTAL/ZIP CODE 275PHONE (+966 (2) 6828270 / 6820431 / 6820461FAX (+966 (2) 6623297EMAIL [email protected] www.arabiacement.com DESCRIPTION Engineering, Procurement and Construction (EPC) contract for the expansion of an existing cement plantPERIOD 2017 STATUS New TenderTENDER CATEGORIES Industrial & Special ProjectsTENDER PRODUCTS Cement Plants

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JORDANMINIMALLY INVASIVE SURGICAL CENTER PROJECT - MARSA ZAYED DEVELOPMENT (PHASE 2)

PROJECT NUMBER WPR172-JTERRITORY Amman, JordanCLIENT NAME Al Maabar Abdoun Real Estate Development Company ADDRESS C/o. Al Maabar Jordan International Investments Bldg., Capital GovernoratePOSTAL/ZIP CODE 850878PHONE (+962-2) 406 7777FAX (+962-2) 642 8424EMAIL [email protected] www.almaabar.comDESCRIPTION Construction of a Minimally Invasive Surgical (MIS) CenterSTATUS New TenderTENDER CATEGORIES Construction & Contracting, Medical & HealthcareTENDER PRODUCTS Hospital Construction

IRAQWATER PUMP STATION PROJECT - MISSAN OIL FIELD

PROJECT NUMBER MPP2912-IQTERRITORY IraqCLIENT NAME CNOOC Iraq Ltd

ADDRESS Buzurgan CampCITY Missan PHONE (+964-7800) 953 165EMAIL [email protected] Construction of a water pump station at an oil fieldCLOSING DATE April 22, 2014 STATUS New Tender

TENDER CATEGORIES Power & Alternative Energy, Water WorksTENDER PRODUCTS Substations Construction, Water Transmission & Distribution Networks, Water Treatment Plants

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DIARY MAY 2014 BIGPROJECTME.COM

HAPPENING THIS MONTH...BIG PROJECT ME ROUNDS UP THE REGION’S BEST EVENTS AND CONFERENCES

FUTURE MAKKAH

JEDDAH CENTRE FOR FORUMS &

EVENTS, SAUDI ARABIA

4-6 MAY 2014

Makkah International Urban and

Infrastructure Development Event.

MIDDLE EAST ROAD SAFETY &

ITS SUMMIT

MUSCAT, OMAN

12-13 MAY 2014

The summit will create a platform

to learn best practices and to

coordinate efforts in order to

strategically adapt to current trends.

PROJECT QATAR 2014

QATAR NATIONAL CONVENTION

CENTRE (QNCC)

12-15 MAY 2014

Project Qatar 2014 attracts buyers

and industry leaders looking

CONSTRUCTION OPPORTUNITIESA number of events are taking place in

May 2014 for the construction industry.

for up-to-date technology and

equipment.

ARABIAN WORLD

CONSTRUCTION SUMMIT

DUBAI, UNITED ARAB EMIRATES

14-15 MAY 2014

The summit explore the

opportunities and challenges

presented by the unprecedented

programme of Megaprojects being

developed in the GCC, Iraq and the

wider Middle East and the prospects

for the global construction industry

following the possible suspension of

sanctions against Iran.

DECOBUILD 2014

SHARJAH EXPO CENTRE

SHARJAH, UNITED ARAB EMIRATES

14-17 MAY 2014

Decobuild will help exploit the

huge potential offered by the

UAE and regional markets

with access to international

manufacturers and dealers

operating in the region.

WORLD STADIUM CONGRESS

2014 – HOSTED IN QATAR

DOHA, QATAR

19-21 MAY 2014

Network with 100+ industry

stakeholders looking to promote the

development of sustainable world

class stadiums.

CITYSCAPE QATAR 2014

DOHA, QATAR

26 - 28 MAY 2014

Cityscape Qatar is slated to become

one of the leading platforms in

bringing together investors, real

estate developers, architects,

designers and senior executives

from all over the world.

LIBYA BUILD: INTERNATIONAL

BUILDING AND CONSTRUCTION

EXHIBITION

TRIPOLI, LIBYA

19-22 MAY 2014

Libya Build today is the largest

International exhibition held in

Libya, specialised in the Building

and Construction sector.

UAE CONTRACTORS FORUM

AND AWARDS

PARK HYATT, DUBAI, UAE

2-3 JUNE 2014

The UAE Contractors Forum and

Awards will highlight existing

opportunities for contractors in

the UAE and will address major

challenges facing the industry.

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INDUSTRY EVENT PROJECT QATAR BIGPROJECTME.COM

BIG PROJECT ME PREVIEWS THE 11TH EDITION OF PROJECT QATAR AS INTERNATIONAL INTEREST IN THE DOHA-BASED CONSTRUCTION SHOW GROWS

PROJECT QATAR, THE 11th International

Construction Technology & Building Materials

Exhibition, is proud to welcome 24 international

pavilions at the Qatar National Convention

Centre (QNCC), on 12 – 15 May, 2014.

The countries featuring international pavilions

include: Austria, Belgium, Canada, China, Egypt,

France, Germany, Greece, India, Indonesia, Iran,

Italy, Jordan, Korea, Kuwait, Malaysia, Pakistan,

Palestine, Portugal, Romania, Spain, Turkey, the

UAE and the United Kingdom.

“The international pavilions have been

fundamental to the success of Project Qatar,

which has a long history of attracting many

global exhibitors and visitors. The pavilions offer

international exhibitors a central platform to

showcase their expertise, products and services,”

says Rawad Sleem, project manager of Project

Qatar 2014.

The newcomers making their debut in 2014

are Indonesia, Palestine and Romania, growing

markets which are eager to participate in Project

Qatar 2014 at a time where Qatar is the heart

of the construction industry in the GCC and

internationally.

The participation of all these international

pavilions demonstrates their recognition of the

importance and commercial value of partnering

with Project Qatar 2014, positioning their

nations in Qatar, amongst key global leaders

in a market that is experiencing world leading

INDUSTRY EVENTPROJECT QATAR

exponential growth in infrastructure, building

and construction.

International focus has increased in

anticipation of the FIFA World Cup in 2022 and

working towards the achievement of the Qatar

National Vision 2030. In 2014, the international

response rate and interest has been vast and a

large number of new global exhibitors and new

countries will also appear for the first time with

over 2,100 companies from 47 countries covering

the QNCC’s entire 41,500 sqm of indoor and

outdoor exhibition space.

“PROJECT QATAR IS AN EVENT THAT IS EVOLVING EVERY YEAR IN A MARKET POISED FOR EXCEPTIONAL GROWTH”

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INDUSTRY EVENT PROJECT QATAR

“This is the third time we are participating

in Project Qatar. It is one of the leading trade

exhibitions and one of the most important events

for us to attend in the GCC region.

“Due to its diverse range of exhibitors and

attendees, Project Qatar has offered us many

opportunities and this year we plan to feature our

entire range of products, giving us a platform to

showcase our expertise in steel and enhance our

access to the lucrative Qatari and GCC markets,”

says Mohammed Al Afari, VP of Marketing at

Emirates Steel, a Gold Sponsor of the event.

“Project Qatar is an event that is evolving

every year in a market poised for exceptional

growth. Taking part in such an event allows us to

network effectively, have direct contact with end

customers and build upon the excellent business

partnerships and opportunities we made at last

year’s successful exhibition. There are many

construction and infrastructure projects in Qatar,

in preparation for the FIFA World Cup in 2022,” Al

Afari added.

“In 2014, $40 billion is going to be invested

in various projects in this booming market.

Project Qatar 2014 is definitely the place to be

which is why the French pavilion organized

by UBIFRANCE will gather nearly 30 French

companies offering various state of the art

technologies and French know-how for the

building industry.

“Some of these companies are already active

in the Qatari market and a number of others are

looking forward to Project Qatar 2014 to network

with partners and distributors,” adds Francois

Sporrer, French Trade Commissioner and

director of UBIFRANCE Middle East.

Project Qatar 2014 is also set to unveil an

advanced business-to-business matchmaking

platform for companies to meet potential

partners and suppliers. This exhibition

management software is an advanced planning

technology, a simple way for visitors to register

and navigate through the hundreds of exhibitors

that make up Project Qatar and facilitate a

connection between exhibitors and visitors who

share similar interests and backgrounds.

Visitors and exhibitors will also benefit

from an advanced mobile application

that will provide detailed information and

updates about Project Qatar 2014.

LightingTech Qatar and HVACTech Qatar are two brand new specialised conferences launched concurrently with Project Qatar 2014. With Qatar at the heart of the growing construction industry in the GCC and internationally with $350 billion of projects currently in the planning or construction phase, Project Qatar 2014 has expanded its conference series to support this growth.

LightingTech Qatar 2014 is designed to address the lighting industry needs specific to the Qatari market, in view of the current and upcoming construction projects and sustainability goals within Qatar. Targeted an audience of architects, designers, specifiers, construction professionals, project owners, as well as government officials and regulators in Qatar, these delegates will hear from industry experts about the most innovative projects and solutions from across the region and the international market and to discover the latest technology advancements, government regulations, industry standards and product certifications that help address the specific needs of the lighting industry in Qatar.

HVACTech Qatar 2014 will bring together private and government project owners, planning bodies, contractors and consultants, utility operators and companies (water, power and district cooling), regulators and solution providers in a specialised forum to address the latest opportunities and challenges in the HVAC and cooling industries.

The conference represents a forum for the local Qatari, Gulf and regional markets to address the latest opportunities and challenges in the HVAC and cooling industries. It will highlight the latest case studies and technological solutions available, within the framework of local and regional market conditions and the developing regulatory environment, whilst offering a highly targeted networking platform enabling the establishment of lucrative business partnerships.

Organisations speaking at HVACTech Qatar include: Doha Metro Project – Red Line North Underground, ISG JV, Qatar Project Management, Qatar Foundation, KEO International Consultants, Marafeq Qatar, Tatweer UAQ Real Estate Development, Arab Engineering Bureau, Hill International, NG Global FZ LLC, Atkins Qatar, Ras Al Khaimah Free Trade Zone, Tanween, Trans Gulf Electromechanical, Condair Ltd and SAFID.

PROJECT QATAR 2014 LAUNCHES TWO BRAND NEW CONFERENCES

EVOLVING EVENTProject Qatar 2014 has grown

from previous years, reflecting the growing importance of the

Qatari market.

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INDUSTRY EVENT BIG 5 SAUDI BIGPROJECTME.COM

BIG PROJECT ME REVIEWS THE BIGGEST SHOW IN BIG 5 SAUDI’S HISTORY

THIS YEAR’S EDITION of The Big

5 Saudi proved to be the biggest

in the event’s history, organisers

have told Big Project ME.With 543 exhibitors from 39 countries

occupying 10,281sqm, the construction

show surpassed the 2013 edition by

a comfortable margin, cementing

itself as a major regional event with

a strong international reach.

It also saw the launch of a range

of free to attend educational events

to add value for both visitors and

exhibitors. Also, a first for this year

was the Live Product Demonstrations

during which the Exhibitors showcased

their innovative products.

In total, The Big 5 Saudi welcomed

10,724 unique visitors from the

construction industry, an increase of

more than 7% from the previous year.

“I was able to learn the latest market

trends, meet with suppliers, network

with professionals and see colleagues.

It was truly a “big” event,” said Khaled

Hashem, design architect, Zuhair Fayez

Partnership and a visitor to the show.

The growth of The Big 5 Saudi

is reflective of the buoyant Saudi

construction sector, with an estimated

US$94,147 million of projects confirmed

for 2014. Much of this spend will be

focussed on the Western Region of the

country, for which Jeddah is the key hub.

INDUSTRY EVENTBIG 5 SAUDI

Also new for this year was The Big 5

Seminar Series, which was a schedule

of educational seminars with local,

regional and international experts,

presenting their views on the latest trends

and challenges, sharing best practice

and taking part in panel discussions.

The seminars ran under the

overarching theme of sustainable

construction, from materials, architecture

and master planning, to presentations on

best practice, including the King Abdullah

University for Science & Technology

(KAUST) and the White Sky iHouse, a

revolutionary a zero-energy residential

concept designed to integrate electric

cars and wind powered gyrocopters.

BIG 5 SAUDI 2014n Number of

years the show has run: 4

n Exhibiting countries: 39

n Exhibition stand space: 10,281sqm

n Number of exhibitors: 543

n Visitors to the show: 10,724

n Total participants: 14,466

SURPASSING EXPECTATIONSThe 2014 edition of Big 5 Saudi comfortably surpassed the 2013 edition, with 543 exhibitors from 39 countries.

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INDUSTRY EVENT CITYSCAPE ABU DHABI 2014 BIGPROJECTME.COM

AT CITYSCAPE ABU DHABI 2014, BIG PROJECT ME FINDS HOW SUSTAINABILITY AND RESIDENTIAL DEVELOPMENT WILL IMPACT THE MARKET IN THE UAE CAPITAL IN 2014

NATIONAL SECURITY ADVISOR and Vice-

Chairman of the Executive Council of Abu

Dhabi, HH Sheikh Hazza bin Zayed Al Nahyan

inaugurated Cityscape Abu Dhabi 2014 to more

than 120 exhibitors from across the Middle

East, UK, Turkey and the USA at the Abu

Dhabi National Exhibition Centre (ADNEC).

The eighth edition of the property and real

estate exhibition witnessed leading developers

from the UAE’s capital city assemble, daily

between April 22 and 24 of April, 2014, to

showcase their developments and upcoming

projects to potential investors in the emirate.

The fact that the number of pre-registered

attendees to the show grew by 26% from last year

is considered to be the first of many positive signs

emerging from Abu Dhabi’s property market.

“There certainly seems to be more footfall

at the event than we saw last year,” said

William Neill, head of Abu Dhabi for Cluttons,

in conversation with Big Project ME.

“There seems to be an increased interest

in the event, especially due to developers

launching new schemes and projects leading

up to the exhibition. The vibe is very positive.”

The theme of sustainability was highlighted

throughout the event by the participation of

national organisations known for their expertise

in environment conservation and energy

efficiency. Having recently completed the LEED

Platinum Siemens Middle East headquarters,

Masdar City presented their solutions and

strategies at Cityscape Abu Dhabi 2014.

INDUSTRY EVENTCITYSCAPE ABU DHABI 2014

“As we enter an important phase of the

city’s growth and development,” said Anthony

Mallows, director of Masdar City, “this exhibition

allows us to demonstrate that the vision is

now a sustainable operation, with attractive

partnership and investment opportunities.”

Also exhibiting at the event was the Abu Dhabi

Urban Planning Council (ADUPC). Speaking

to Big Project ME, Abdulla Ahmed, planning

department manager of Development Review

at ADUPC said the organisation’s exhibit for

2014 was aimed at showing Estidama’s ‘tangible

benefits’ to the audiences at the show.

“ADUPC has always participated in Cityscape

Abu Dhabi, and this is our fifth consecutive

year at the event,” Ahmed said. “We have

altered our exhibit model this year to reflect

the developments made with our practices.

“Our Estidama Corner is aimed at

bringing the aims of Estidama closer to the

public and giving them the opportunity

“ABU DHABI HAD A GOOD YEAR LAST YEAR AND RENTS WERE UP 16%”

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to see and sense the tangible benefits of

its implementation,” Ahmed added.

Optimism evident at the exhibition seemed

to emanate the most from Abu Dhabi’s

residential sector, with announcements by

leading property developers proving analysts’

confidence in the capital’s market. A day prior

to the commencement of the exhibition, Aldar

Properties launced three new residential

projects, open to investment from UAE nationals

and expats, at Yas Island, Al Raha Beach

Waterfront and Al Bateen area in the emirate.

“We (Aldar) extensively studied the Abu Dhabi

property market and its trends before deciding to

launch these projects,” said Gurjeet Singh, chief

development officer of Aldar Properties. “All three

spots – Yas, Al Raha and Al Bateen – are well-

enabled in terms of infrastructure, and we believe

each of them is ripe to be launched in the market.

“Their locations differentiate them

from the existing ones in Abu Dhabi,

and we will accordingly develop the

projects to suit the current demand in

the property market,” Singh added.

While notable other luxury residential

projects, such as the Al Reef Villas 2 development

by Manazel Real Estate were also announced, the

standout announcement from the housing sector

Wouter Molman, director, Cityscape

Group speaks to Big Project ME:

“It is often said that Cityscape is a barometer of the market and its progression. This year, we have found an increased number of developers and visitors to Cityscape Abu Dhabi, which goes on to show the renewed optimism investors have discovered in the market.

A lot of developers, who had initially exhibited with us in the heyday, but were briefly absent after the market crash, have returned to the event this year. We even hosted Masdar City for the first time, which is a greatly positive sign for the industry.

Abu Dhabi has pioneered the drive for sustainability in the region, and a lot of projects exhibited at Cityscape Abu Dhabi 2014 have proven this trend will continue. Abu Dhabi’s recovery in property markets began in early-2013, and the show this year has been a result of a year’s worth of growth and progress.”

BAROMETER OF PROGRESS

remained the Emirati-designed energy efficient

project, ‘Green Pre-designed Villa Concept’.

Emirati designer Malak Ali Hassan, owner

and CEO of 3Dimension, the company

responsible for the pre-designed turnkey villas

said the project would incorporate various

specifications and eco-friendly materials, along

with intelligent design strategies to ensure a

high sustainability quotient in the units.

“We planned the pre-designed green villas

based on our objective to promote smarter

water usage and reduce energy consumption,”

she explained, “while ensuring that only

sustainable building materials are used.”

Meanwhile, experts warned that the

momentum shown by Abu Dhabi’s residential

sector could witness a slowdown.

“Abu Dhabi had a good year last year and

rents were up 16%,” explained Matthew Green,

head of research at CBRE Middle East.

“The property market is at the start of a

growth curve that could last 12-15 months, and

that could unfortunately translate into increased

rents. The impact of removing rent caps has

already been visible in the final quarter of 2013

and Q1 of 2014. While we don’t expect that level

of quarterly growth, we certainly expect more

growth year-on-year in 2014,” Green predicted.

SUSTAINABILITY FOCUSSustainability was a major area of focus at Cityscape Abu Dhabi this year.

THE CHAIRMAN OF the National Committee

for Contractors at the Council of Saudi Chambers

recently announced some startling news during a

press conference late last month.

Speaking at the Makkah Chamber of

Commerce and Industry, Fahd Al-Hammadi told

local media that more than 100,000 contractors

quit the business over the last one year.

“The number of registered contractors at the

chambers in the Kingdom fell to 140,000 from

240,000 in a year. They just disappeared from

the market, according to statistical studies,” he

fretted. Al-Hammadi put the number of classified

contractors at 3,100, which accounts for 2% of

contractors taking up projects in the Kingdom.

Furthermore, the chairman warned against

a clause in the new labour regulations, which

would permit foreign workers to keep their

passports and to obtain a transfer to any sponsor

they wished when the contract period with

original sponsoring company ended.

He said that if this clause is implemented,

it would prove to be ‘catastrophic for the Saudi

contractor market’.

Let that sink in for a minute...

This is the chairman of the National

Committee for Contractors, at the Council of

Saudi Chambers, advocating against allowing

foreign workers to keep their passports and

obtain transfers to new sponsors, or jobs.

And he wonders why contractors in the

Kingdom are shutting down…

Given that the Saudi Arabian government is

determined to push through the Nitaqat reforms,

there are increasingly limited options open to

foreign workers.

By taking away their passports and barring

them from obtaining transfers to new jobs, the

present system is simply adding to the bottleneck

of stalled projects, rather than allowing for the

free and fair transfer of labour according to the

time-honoured principles of supply and demand.

There is more than enough work to go around

for everyone in the Kingdom. If the Nitaqat

system is to succeed, it is crucial that the Saudi

Arabian government allows the existing labour

force to move around freely and take up jobs

where they’re available.

This allows for jobs to be completed on time

and without spiralling out of control, while also

allowing the local population to be integrated

into the workforce, with minimal pressure or

expectations from them.

I would love for the chairman to explain

how he believes this new clause in the labour

regulations is going to prove to be ‘catastrophic’.

Ultimately, what needs to be reinforced is that

taking passports away from foreign workers is an

illegal practice that has been clamped down upon

by a number of governments in the region.

We have seen the outcry that has been raised

in Qatar over the Kalafa system and how the

government there is slowly pushing through

much needed reforms. Meanwhile, the UAE

maintains that employers withholding their

employee’s passports is illegal.

In fact, employees now have legal avenues

they can peruse if their employer seizes their

passport and can quit without notice, while

demanding compensation for the dismissal.

While it’s fantastic that the Saudi government

is introducing such positive regulations, lets hope

it follows the UAE’s lead and ensures that their

expatriate workers are adequately protected.

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GAVIN DAVIDS

Gavin Davids says that recent comments by the chairman of the National Committee for Contractors at the Council of Saudi Chambers could have an incredibly damaging effect

Council Created Complications

“ULTIMATELY, WHAT NEEDS TO BE REINFORCED IS THAT TAKING PASSPORTS AWAY FROM FOREIGN WORKERS IS AN ILLEGAL PRACTICE”

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May 2014