Technical Review Middle East 2 2015

Market News - p6 Executive Strategy - p16 The Big 5 Saudi - p38 Intermat Paris - p92 Arabic Section - p120

www.technicalreview.me

1984 - 2015Serving Middle East

Business

31 Years

SERVING THE REGIONS BUSINESS SINCE 1984 9 4

USA: $16.50, United Kingdom: 10 Vol 31/Issue Two 2015

Utilising waste to power homes,businesses and public services

How port facilities are fuellingexports and promoting growth

All aboard

Waste-to-Energy

60

ConstructionPower & WaterLogisticsCommunicationsInnovations

INSIDE

See us at the shows

The regionsnuclear effortsstep up a gear

The power industry heads to Dubai forthe return of Middle East Electricity

Stand: 2B18

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4 Contents


44

THE REGION-WIDE FOCUS on economicdiversification has sharpened throughoutthe region in recent months, thanksprimarily to the falling global oil price. Todelve deeper into the related issues, thisedition of Technical Review features atimely and comprehensive economicreview on the adoption of industrialdiversification throughout the GCC (p18).We also look at nuclear energy ambitionsacross the MENA region (p56) and thebroader energy aspirations of Middle Eastcountries as they look to ease theirdependence on fossil fuels (p52). With Middle East Electricity returning toDubai at the beginning of March, we bringyou the latest exhibitor news and highlights(p60) ahead of the worlds largest powersector trade show. This issue also considers growth in Kuwaitsconstruction sector (p16) and safety andsecurity at our ports (p50).

At Technical Reviewwe always welcome readers comments to

[email protected]

EDITORS NOTEBUSINESS & MANAGEMENT

Market News 6Qatar project sector to benefit from economic boom;Air Arabia enters Chinese market; Atkins wins AbuDhabi IWPP contract

Executives Calendar 14Events listings; WETEX; USETEC

ExECUTIvE STRATEGyPace in Kuwait 16Consultancy firm plots progress in Kuwaits growingconstruction market

ANALySISIndustrial Diversification 18Economist Moin Siddiqi explores the development ofeconomic diversification throughout the GCC

Waste Management 24Lynda Davies looks at the growth of waste-to-energyschemes throughout the region

Smart Grids 30Demand and investment on the rise as the Middle Eastmoves towards smart grid adoption

CONSTRUCTIONIntelligent Buildings 34We look at some of the greener solutions buildingshave been adopting in the GCC

The Big 5 Saudi 38The latest developments in the Saudi Arabianconstruction sector ahead of the show

LOGISTICSPort Facilities 46Security and safety as infrastructure investmentcontinues to increase at the regions ports

MIDDLE EAST ELECTRICITyMEE 2015 60All the news ahead as the leading power industry tradeshow returns to celebrate its 40th anniversary

Exhibitor News 66Inmesol, Weichai, Megger, Bahra Cables, Mecc Alte,Yamuna Densons and many more

ARABICNews 4

Analysis 7

IN THIS ISSUE...

67 94

Technical Review Middle East - Issue Two 2015

SERVING THE REGIONS BUSINESS SINCE 1984 9

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S02 TRME 2 2015 - News 01_Layout 1 23/02/2015 14:48 Page 5

Work on Algerian steelcomplex set to startConStrUCtion oF ALGeriAsBellara Steel Complex will beexpected to begin in Q1 2015, withthe project set to met the countrysimmediate requirements for ironand steel.

Located in el Milia, Jijel, 359 kmfrom the capital Algiers, the projectwill include the construction of asteel factory and three rolling mills,of which two mills will be dedicatedto reinforcing steel rebars.

the Bellara Complex will targetproduction of two million tonnes ofsteel annually during its first phaseand four million tonnes during itssecond phase.

the steel complex was plannedfollowing the 2013 establishment ofa joint venture, named AlgerianQatari Solb (AQS) between AlgeriasSider Co. & national investmentFund, which will hold a 51 per centstake and Qatar Steel and QatarMining, which will hold theremaining 49 per cent.

the project has been predictedto create close to 2,000 direct jobs.

Omantel partners withUKs InmarsatoMAni teLeCoM ProviDeromantel has entered into apartnership with UK-based satelliteoperator inmarsat in order toprovide its customers with a host ofnew communication solutions andsatellite-oriented services.

inmarsat, which owns andoperates three global constellationsof 12 satellites flying ingeosynchronous orbit, will enhanceomantels offering to its corporatecustomers to include seamlessvoice, broadband data and iPcommunication solutions.

Ali Bakhit Kashoob, seniormanager of corporate productdevelopment at omantel,commented, this partnershipcomes as a response to ourcorporate customers needs andwill provide them with alternativeconnectivity solutions.

oman has diversifiedtopography, which makes itchallenging in some cases forcompanies operating in difficultterrains to communicate with theirheadquarters and clients located indifferent parts of the sultanate orthe entire world.

ENGINEERING AND DESIGN firm Black & Veatchhas been selected by the Saline WaterConversion Corporation (SWCC) as engineeringand design consultant for the Jeddah 4desalination project, which will help augmentthe water supply in the Saudi Arabian city.

The reverse osmosis plant will have acapacity of 400 Ml/day and will be classedamong Saudi Arabias largestdesalination plants.

Black & Veatch, whose revenuesin 2013 stood at US$3.6bn, hasbeen involved in projects on morethan 40 desalination plants andin 2003 was selected by SWCCto carry out engineeringstudies and preparation ofengineering, procurementand construction tenderdocuments for sixdesalination plants.

Black & Veatch Middle East managingdirector Mazen Alami said, An augmentedwater supply is central to the prosperity andcontinued development of Jeddah.

SWCC, through critical infrastructureprojects such as Jeddah 4, has proved highlyeffective in addressing the kingdoms waterrequirements. Our experience with large-scale

desalination projects around the world willhelp the corporation serve the needs ofJeddahs growing populace, he added.

Black & Veatch will be responsible forstudies of the Jeddah 4 site and adjacentsea conditions, conceptual process and

engineering design, and preparation oftender documents, with the projectset to be tendered on an engineer,

procure, construct (EPC) basis. The company will also support

SWCC during the tendering andaward of the EPC contract.

Black & Veatch appointed as consultant for desalinationproject in Jeddah

Growth in the infrastructure projects pipelinein Qatar looks set to echo predicted growth in thecountrys economy, which Qatars Ministry ofDevelopment Planning and Statistics has said willbe 7.7 per cent in 2015.

More than US$30bn worth of new projects willbe expected in 2015, according to online projectstracker MeeD Projects.

infrastructure projections have been boosted byforecasted project awards on the Al-Karaanapetrochemicals complex, which has been valued atmore than US$5bn, as well as the rolling stock andsystems contract on the Doha Metro, valued atmore than US$2bn.

other major awards look set to include a host ofroad, rail and real estate projects, while a majorport project and five multi-billion dollar waterreservoir packages have also helped fuel growthwithin Qatars infrastructure sector.

ed James, director of analysis at MeeD Projects,remarked, Despite falling oil prices, Qatar has theproject pipeline, the political impetus and thefinancial reserves to continue project spending asit prepares to host the 2022 FiFA world Cup.

with around US$30bn worth of projects, 2014witnessed a 25 per cent increase in projectspending as compared to 2013, and there willcontinue to be an upward trend in project activity.

Speaking ahead of the MeeD Qatar ProjectsConference set to take place in Doha in March2015, a spokesperson for the Qatari Ministry of

Development Planning and Statistics said, Solidexpansion in non-hydrocarbon activities willcontinue to drive overall economic momentum,propelled by investment spending, anexpansionary fiscal stance and population growth.

in calendar years 2014-2016, the overall fiscalbalance is expected to stay in surplus.

Fuelled by vast hydrocarbon reserves, thecountry has begun in recent years to demonstratehow to utilise its funds to ensure the countrysnon-oil economy is able to function in times oflower oil prices.

edmund oSullivan, chairman of MeeD events,remarked, Qatar is going to lead the Gulf regionand the world once more with further progress inthe execution of its inspiring vision for the yearsto 2030.

Lower oil prices cant be ignored, but its clearthat Qatar has the financial and human resourcesto overcome this challenge.

Mazen Alami, managing director Middle East at Black & Veatch

The infrastructure projects pipeline in Qatar looks set tocontinue growing according to the latest market data(Photo: Qatar Tourism Authority)

Project awards set to follow upward trend inQatars economy

6 Market News

Technical Review Middle East - Issue Two 2015 www.technicalreview.me

Briefly


Ma'aden signs EPCcontract for residentialproject in Saudi Arabia SAUDi ArABiAn MininGCompany (Maaden) has signed anengineering, procurement andconstruction (ePC) contract withAl-rashid trading and ContractingCo. Ltd for the residentialinfrastructure at the KingAbdullah Project for waad AlShamal City Development.

Located in the north of SaudiArabia, waad Al Shamal City willcover an area of 440 sq km. out ofthe total planned area, 150 sq kmwill be allotted towards theconstruction of a US$7.4bnphosphate facility with aproduction capacity of 16,000tonnes, which will be developedby SABiC, Mosaic and Maaden.

of the project, Maadenpresident and Ceo Khalid AlMudaifer, said, together with ourpartners, we are building a citythat will elevate the livingstandards of people in the northand open up new economicopportunities for local Saudi youthand businesses.

Sharjahs Air Arabiabecomes MENAs firstlow-cost carrier to enterChinese marketShArJAh-BASeD Air Arabiabecame the Middle east andnorth Africa (MenA) regions firstlow-cost airline to enter theChinese market when it beganscheduled flights to Urumqi inFebruary 2015.

the carrier will fly regular non-stop flights to the capital ofXinjiang Uygur Autonomousregion in northwest China.

Urumqi has a population ofmore than three million peopleand is considered a key gateway toXinjiang, which has vast reservesof oil and gas.

Adel A Ali, group Ceo of AirArabia, said, the Chineseaviation sector has witnessedtremendous growth in recentyears and we are delighted to bethe first low-cost carrier from theMenA region to play an importantrole in this story. we have had oureye on the Chinese market forsome time and are now ready tobegin regular services to one ofthe worlds biggest economies.

GroUnD BreAKinG For Phase i of the US$4bnSobha hartland community development inDubai will get underway in Q2 2015 accordingto its developer Sobha Group.

Sobha LLC, the groups UAe-based entity,announced it would invest in expanding itsregional and global footprint by opening fivesales offices in London, Singapore, riyadh, Doha and Kuwait City by July 2015, in order to increase interest in its UAe developments.

the hartland developmentwill see the inauguration ofSobhas first internationalcurriculum school, hartlandinternational School, inSeptember 2015, while thecompany also plans to breakground on villas and apartmentson the development in Q2 2015.infrastructure tenders for roads

and utilities on the development have alreadybeen floated with a number of unnamed bidsreceived by Sobha.

Ajay rajendran, vice-chairman of Sobha LLC,said, we strongly believe that the economicfundamentals for Dubai are stronger than everand, therefore, the initiative to open overseassales offices strengthens our commitment toDubais longer-term real estate growth.

Upon completion, thehartland community will featuretwo international schools, a spa,hotels and cafs, with a deliverytime scheduled in a number ofphases beginning in Q1 2017.

Sobha LLC has been involvedin all areas of the Sobhahartland development includingmaster planning, architecture,interior design, constructionand landscaping.

Sobha expands sales reach ahead of Hartland ground breaking

SPAniSh GenerAtor Set manufacturerhimoinsa has supplied five generator sets to watertreatment and reverse osmosis desalinationcompany Acciona Agua for operation at four watertreatment plants in egypt.

the objective of the project was to achieve thepurification of 150,000 m3/day of urbanwastewater, equivalent to the same amount usedby approximately 500,000 people, with the waterto be reused for irrigation.

the four treatment plants, located in Abnoub-elFath, Sodfa-el Ghanayem, el Ayat and Abu Simbel,will use the generator sets to activate waterpurification systems during a power cut, whichLeopoldo Lainz, Asia-Pacific developmentmanager for Acciona Agua, said happens quitefrequently in this area.

two open generator sets the hMw-1135 t5and htw-2030 t5 models were installed at thelargest of the plants in Abnoub-el Fath, which has

a flow of 82,000 m3/day, supplying a populationof more than 300,000 people.

the sewage plants at Sodfa-el Ghanayem and elAyat were equipped with htw-920 t5 generatorsets which have a Mitsubishi 1,000 kvA motor.Both emergency gensets will help maintainactivity at each of the plants that supply morethan 200,000 people in total.

the smallest of the plants in Abu Simbel wasequipped with a 400 kvA generator set, the hMw-350 t5 model with a MtU engine, with the sitehaving a flow of 6,000 m3/day and supplying20,000 people.

Acciona, who had signed an agreement withegypts state-owned national organization forPotable water and Sanitary Drainage (noPwASD)for the projects, chose himoinsa ahead of eightother power generation companies to supplyemergency power to the sites.

Jos Astigarraga Zabala, manager of Astigarragaenergy (Asener), the distributor for the northernzone of himoinsa espaa, said the projectrequired the incorporation of supply tanks withautomatic fuel transfer pumps.

All the generator sets are designed to work inemergencies and have a AS5CeA7 control unitinstalled that offers high protection, both for thegenset and the equipment and devices itsupplies, Zabala remarked.

Members of noPwASD recently visitedhimoinsas factory in Spain, during which theyattended technical performance testing ofgenerator sets and witnessed additional qualitychecks at the site.

Sobha LLC vice-chairman Ajay Rajendran

Members of Egypts NOPWASD during a visit to Himoinsasfactory in Spain

Himoinsa generator sets in water treatment plants in Egypt

8 Market News


Briefly


EIAST set to expandscope to includemeteorology satellitestHe UAes nAtionAl centre ofMeteorology and seismology(ncMs) has expressed interest incollaborating with the emiratesinstitution for Advanced scienceand technology (eiAst) on thedevelopment of satellite systemsand technology specific to thefield of meteorology.

Headed by ncMs executivedirector H.e. Dr. Abdullah AhmedMandoos, a ncMs delegation metwith the eiAsts executives,including director general H.e.Yousuf Al shaibani, who said,eiAst is always looking for waysto extend the technology we havedeveloped and continue todevelop, towards fields beyondspace science. one of our aims forthe institution is to benefit allindustries in the UAe and helpdevelop the nation further as aleading hub of both business and technology.

eiAst has so far specialised inearth observation satellites;however, there are nometeorology satellites madespecifically for the region, soinstitutions like the ncMs gathertheir weather, climate andenvironmental data from globalsources. this could be anopportunity for eiAst to developnew systems and technologyspecific to their needs, he added.

Oman to award railnetwork operations dealin first half of 2015A contrAct For the operationsand maintenance for oman's newrail network is set to be awardedwithin the first half of 2015,according to Dr Ahmed bin salimAl Futaisi, the country's ministerof transport and communications.

Al Futaisi said the contracts tobe awarded would include thefirst phase of the line'sconstruction, stretching from AlBuraimi to sohar, and the buildingof a new railway centre ofexcellence. the minister addedthat a number of road projectswould be opened this year on theAl Batinah expressway and theA'sharqiyah road, while a publictransport plan for Muscat will alsobegin later this year.

ATKINS HAS BEEN appointed by HyundaiEngineering and Construction Company (HDEC)to provide engineering design services for AbuDhabi Water & Electricity Authoritys (ADWEA)Mirfa Independent Water and Power Project(IWPP). A consortium of engineering,procurement and construction (EPC) contractorsled by HDEC will undertake the construction ofthe plant, which is due to be commissioned inphases during 2016 and 2017.

Atkins Power and Renewables business hasbeen awarded a contract by the consortium toprovide civil design review and assistance inbuilding permitting from the Western RegionMunicipality of Abu Dhabi, along withassistance towards conformity to the Estidamasustainability framework and internationalenvironmental standards.

Phil Malem, managing director for AtkinsPower and Renewables business, said, Thiscontract is a significant win for the team andanother major step towards growing AtkinsEnergy business in the UAE.

Located 120 km from Abu Dhabi city, theMirfa plant project is the emirate's 10th facilityof its kind and will involve the development,design, engineering and construction of newpower and water facilities. When finished,Mirfa IWPP will have a total power capacity ofapproximately 1,600MW.

The Estidama framework ensuressustainability is incorporated into theconstruction and operation of all new buildingsin Abu Dhabi and forms a key aspect of the drivetowards innovative green standards through AbuDhabis Vision 2030.

Atkins wins Mirfa IWPP engineering design contract

District cooling services provider empowerhas recently connected its services to Dubaisiconic emirates towers, which consist of theemirates office tower and Jumeirah emiratestowers Hotel.

the existing air cooled system of the two towers,which rise to 355 metres and 309 metres,respectively, and are connected by a two-storeyretail complex, was converted to a district cooling

system with a total capacity of 6,000 refrigerationtonnes (rt). this should result in energy savings ofapproximately 80 per cent at the site, which isoperated by Jumeirah group.

empower ceo H.e. Ahmad Bin shafar said,Building a green economy for sustainabledevelopment is a key pillar in the countrysroadmap to development under vision 2021 andwe are fully committed to achieving this goal.

our partnership with the Jumeirah group is akey milestone as it marks the convergence of thereal estate, hospitality and utilities sectors increating projects that are sustainable andenvironmentally responsible. the conversion fromtraditional cooling to district cooling for thiscapacity is the first of its kind in Dubai and has setthe benchmark for other developments utilisingtraditional systems of cooling.

the new cooling system in the emirates towerswill utilise 0.9kW of electricity for every tonne perhour, compared to the propertys conventionalcooling system, which required 1.7kW of energyevery hour. construction work for the districtcooling infrastructure included connecting theproperty to empowers district cooling plantserving Dubai international Financial centre (DiFc),utilising advanced non-destructive road crossing(nDrc) technology through micro-tunnelling,which ensured traffic disturbance was avoided.

the retrofit project was the first phase of a30,000 rt project that includes the renovation ofcooling systems of retail, residential andcommercial Jumeirah group properties such as theworld-famous Burj Al Arab, Jumeirah Beach Hotel,emirates Academy of Hospitality Management andMadinat Jumeirah.

The conversion of the district cooling system at Emirates Towerswill result in energy savings of approximately 80 per cent(Photo: Guilhem Vellut)

Empower installs energy-saving district cooling system atDubais Emirates Towers

10 Market News


Briefly


tHe gloBAl PersonAl protective equipment (PPe) market hasbeen predicted to reach Us$55,509.1mn by 2020, having hitUs$33,952.5mn in 2013, according to a recent study. the application segment includes sub-segments such astransportation, automotive, manufacturing, oil and gas, chemicals,food, mining, construction and pharmaceuticals. in the report by transparency Market research, the PPe market iscomposed of head, eye and face protection, protective clothing,hearing protection, respiratory protection, fall protection, handprotection, professional or protective footwear, and others. in theterms of geography, it includes regions such as Africa, southAmerica, north America, the Middle east, europe and Asia Pacific.www.technicalreviewmiddleeast.com/hse

ON THE WEBA round up of the leading developments and innovations recently featured on Technical Review Middle Easts online portal.To read more or to stay up to date with the latest industry news, visit www.technicalreviewmiddleeast.com

12 Developments

www.technicalreview.meTechnical Review Middle East - Issue Two 2015

AirPorts oPerAteD BY Dubai Airportshave surpassed londons HeathrowAirport in terms of internationalpassenger traffic.

in 2014, Dubai Airports registered atotal of 70.45mn passengers (up 6.1 percent on year) while londons HeathrowAirport witnessed 68.09mn internationaltravellers, said airport officials. DubaiAirports authorities are now projectingto add eight million passengers in 2015,resulting in a total of 79mn passengersby the end of the year. www.technicalreviewmiddleeast.com/logistics

In 2014, Dubai Airportsregistered 70.45mn passengersand authorities want to takethe total to 79mn in 2015(Photo: Shenghung Lin/Flickr)

Dubai Airports traffic surpasses Heathrow

JorDAns MoBile PHoneoperator orange Jordan hasclaimed that it would meet nearly50 per cent of its energy demandsthrough solar power. According tocompany officials, orange Jordanhas already floated a tender forthe construction of a solar farmand will decide the company torun the project by the end of themonth. the project is expected togenerate 25-30mn kWh of power per year.www.technicalreviewmiddleeast.com/power-a-water

Jordan has among the highest averagesof solar irradiance and high wind speedsin the region (Photo: Mike Baker/Flickr)

Orange Jordan to cover half of energy needs through solar

tHe WiDesPreAD sHortAge of mined diamonds has led to the risein popularity of grown diamonds, whose growth is beingsupplemented by technology and research, stated a report by Frost &sullivan. supply of mined diamonds has declined in the past decade,with key diamond mines having passed their peak production levels.

to solve the growing shortage, grown diamonds could be apotential solution. technology has made possible production of rarequality colourless ila quality diamonds by creating conditionsconducive to their growth in semi-conductor grade facilities abovethe earths surface.

the report said that grown diamonds will become a dominantplayer in high technology applications and can also be a significantsource of the stone for the luxury sector.www.technicalreviewmiddleeast.com/construction

Grown diamonds gaining popularity,states Frost & Sullivan report

cAnADA-BAseD cPcs trAnscoM international ltd. has beenchosen by omans electricity Holding co (eHc) to lead aconsortium of advisors on the possibility of privatising thesultanates electricity distribution business.

According to eHc officials, the canadian company was chosenbased on the extensive experience it has in power businessconsultation. Privatisation of several of omans economic sectorsis an option being seriously considered by the government, whichis currently cash-strapped and has also been affected by thedeclining oil price. the sultanate is keen to privatise some of the60-odd companies it owns.www.technicalreviewmiddleeast.com/power-a-water

GLOBAL PROVIDER OF energy management solutions Landis+Gyrand mobile giant Ericsson have entered into partnership to offersmart metering solutions aimed at providing smart gridenvironments to cities across the Middle East.

The deal will see Ericsson and Landis+Gyr offering support toutilities across the region, with solutions that provide essentialdata needed to develop active relationships with end-users. Thecompanies aim to create smart energy networks that are able tocollect large amounts of data, providing opportunities forecient grid and energy consumption management.www.technicalreviewmiddleeast.com/power-a-water

Canadian firm to advise Oman onprivatising electricity

PPE market to see CAGR of 7.3 per centin five years

Ericsson and Landis+Gyr address

smart grid projects in Middle East


S04 TRME 2 2015 - Events Calendar_Layout 1 23/02/2015 14:52 Page 13

14 Calender


ThE World TradEFair for UsedTechnology, USETEC,will take place inKarlsruhe, Germany.It will host livepresentations ofused machinery andequipment frommore than 20industry sectors.

dr Nils Schmid,deputy minister-president and minister for nance and economicaffairs in Baden-Wrttemberg will undertake the role of patron.

USETEC has recieved backing from all the leading associations inthe used technology sector, including the FdM, Trade associationfor Machine Tools and Tooling in Bonn. The company has played akey role in developing the USETEC concept.

as well as specialist dealers, service providers andmanufacturers play key roles at USETEC, said Florian hess,managing director of hess Gmbh in Weingarten/Baden. Themood in the market is currently good to very good across theboard. Sales opportunities despite perceived risks in someimportant export regions continue to be seen as stable.

USETEC 2015 will welcome visitors across 20 sectors

USETEC 2015 receives support fromkey partners in the used-tech market

THE WATER, ENERgy, Technology and Environment Exhibition(WETEX) 2015 will aim to bring together companies and individualsin the water, energy, environment oil and gas sectors in Dubai thisApril. The show will provide a platform for participants to showcasetheir products and services, and to explore potential partnerships.

The annual event, which is set-up by Dubai Electricity and WaterAuthority (DEWA), will offer a number of services to exhibitors fromthe government, semi-government, and private sectors. Under thedirectives of Sheikh Mohammed bin Rashid Al Maktoum, VicePresident and Prime Minister of the UAE, and Ruler of Dubai, toenhance the global position of Dubai in all fields, DEWA hasdeveloped WETEX into a major international platform for vitalsectors of the economy, said Saeed Mohammed Al Tayer, MD andCEO of DEWA, and President and Founder of WETEX.

According to Al Tayer, over the last 16 years, the exhibition hascontributed to key developments in water, environment, oil andgas, and conventional and renewable energy sectors, and hasboosted the national economy through establishing agreementsand partnerships that support economic, social and environmentalprojects in Dubai.

WETEX saves time and effort for producers and consumers bybringing together exhibitors and consumers in a single location. Theexhibition also supports production by displaying various productsand services, stated Al Tayer.

WETEX 2015 to offer global platform fortrade partnerships in Dubai and beyond

EXECUTIVES CALENDAR 2015MARCH 2015

1-3 Saudi Plastics & Petrochem/Saudi Print & Pack JEDDAH www.saudi-pppp.com

2-4 Middle East Electricity DUBAI www.middleeastelectricity.com

8-11 The Big 5 Saudi JEDDAH www.thebig5saudi.com

30-2 April BuildexMARCH 2015 DAMMAM www.buildex-sa.com

APRIL 2015

13-15 USETEC KARLSRUHE www.usetec-fair.com

20-25 Intermat Paris PARIS www.intermatconstruction.com

21-23 WETEX DUBAI www.wetex.ae

MAY 2015

4-7 Project Qatar DOHA www.projectqatar.com

6-7 Trans Middle East DOHA www.transportevents.com

18-20 FMExpo DUBAI www.fm-expo.com

JUNE 2015

8-11 Project Iran TEHRAN www.project-iran.com

Readers should verify dates and location with sponsoring organisations, as this information is sometimes subject to change.


PaCE haS SUCCESSFUlly joined forces with many keyplayers in the global consultancy field such as SOM, Arup,Buro Happold, gensler, HOK, Fentress Architects and TRO JB,as well as signature architects such as Zaha Hadid. This enabled thecompany to establish long-term partnerships and joint ventures,which have lasted more than 25 years. Many of these firms continueto grow, taking on new projects and landmarks ventures in Kuwaitand the wider region. Set up in 1968 by Hamid Shuaib and hispartners, Pace has recently adopted a new approach that will seethe firm carry out more challenging projects, expanding its globalpresence and becoming a client-driven firm, rather than being aproject-focussed firm.

Our ability to evolve with new sustainable building technologies,in order to keep up with the fast growing pace of the constructionsector in the region, is what distinguishes us from other firms,stated Tarek Shuaib, partner and CEO at Pace.

The Middle East architecture and construction market has

witnessed a major boom, Shuaib said. With a more solid presencefor many construction and architectural firms, the development ofkey projects and a continuous increase in demand for innovative andsustainable building solutions; thus providing a platform for manyfirms in the architectural and construction sector to respond andcater to these growing needs and demands.

Across the Middle East, countries including Kuwait, the UAE, Qatarand Saudi Arabia have seen rapid transformation of a number ofsectors such as commerce, tourism and construction. The region isprojected for further growth, being host to some of the biggestupcoming international events including the FIFA World Cup 2022 inQatar and the Expo 2020 in Dubai.

A recent report published by the Kuwait Finance House, showedthat infrastructure spending in Kuwait has experienced stronggrowth at a rate of 5.9 per cent in 2014 and is projected to rapidlyrise in the coming years. Most of the projects executed in 2014 werefocused on governmental and commercial projects.

While huge international events are set to take place in the UAEand Qatar, the Kuwaiti government is pumping more money intoconstruction projects, such as hotels and residential projects, tomeet the demands of people travelling to the region. According toShuaib, as a result of such developments, Pace has rolled out variousarchitecture and engineering projects across Kuwait; including theJamal Abdul Nasser Highway, the Jahra Road Development Project,the Avenues, the Central Bank of Kuwait, the Jahra and FarwaniyaCourt Buildings, Adan Hospital and the new Maternity Hospital.

Looking ahead to the future, Pace has entered into partnershipwith the Kuwait Fund for Economic Development (KFAED) to offerproject management services for developments based in theKingdom of Morocco, where the government of Kuwait will invest atotal of US$1.25bn in the venture. The firm is currently working onexpanding and developing its architecture consultancy to grow itsregional presence and position. Officials heading Kuwaits Vision2030 development plan believe that an important factor in boostingKuwaits construction is looking at the role the private sector has toplay in boosting the economy; both to help with financing and alsoto facilitate knowledge transfer, Shuaib noted.

Architecture, engineering, design and planning practice firm, Pace, is supporting the Kuwaiti governments vision toexpand the countrys construction industry.

Driving progress in Kuwaitsconstruction sector

16 Executive Strategy


The Middle East architectureand construction market has

witnessed a major boom


Tarek Shuaib, CEO andpartner at Pace


S05 TRME 2 2015 - Analysis 01 _Layout 1 23/02/2015 14:51 Page 17

ThE EnErGy-rICh countries ofthe Gulf Cooperation Council(GCC) had a combined grossdomestic product (GDP) of US$1.7 trillionin 2014, according to the Institute ofInternational Finance (IIF), a Washington-based association of private banks,making it the worlds 12th largesteconomy, slightly below that of Canada(US$1.8 trillion), but exceeding bothAustralia (US$1.4 trillion) and Spain(US$1.3 trillion). While real GDP (inflationadjusted) grew at an annual average rateof 5.5 per cent during 2010-14, above the3.8 per cent mean for the Middle East andNorth Africa (MENA) region, based onInternational Monetary Fund (IMF)figures. On current expansion, the GCCsaggregate GDP could reach US$2 trillionover the medium term, driven by megainfrastructure investments, robust private sector growth and steadyhydrocarbons production.

The GCC economies are much betterpositioned compared to the 1980s and

1990s to withstand exogenous shocksthanks to large official foreign assets andminimum debt (see Table 1), which, inturn, will mitigate the adverse impact ofthe oil-price slump on economic activityand allow continued robust publicspending, particularly on infrastructure.

Gulf producers are now budgeting foran average oil price of US$60 a barrel thisyear, with only Bahrain expected to recorda fiscal deficit, according to the IMF.However, deficits could also arise in SaudiArabia and Oman if crude remains belowUS$50 into the second half of 2015.

The GCCs standing on the world stage has much to thank the hydrocarbons sector for, but building economies on non-finiteresources will eventually require more of a long-term outlook. With a host of national development plans in place,economist Moin Siddiqi explores the developments and processes behind economic diversification throughout the GCC.

The push for economic diversification

18 Analysis


In 2014, the GCC had a combined GDP of US$1.7trillion in 2014, according to the IIF (Photo: fsg777)


Table 1: The GCC* Consolidated Macroeconomic IndicatorsProjections

2011 2012 2013 2014 2015Nominal Gross Domestic Product, US$bn 1,450 1,600 1,649 1,719 1,772Real GDP Growth (%) chg, avg 7.5 5.8 4.1 4.4 4.5Non-hydrocarbons 5.8 5.7 6.0 6.1 5.9Consumer Price Inflation (%) chg, avg 2.9 2.4 2.8 2.8 3.1Fiscal Balance (%) of GDP 13.2 14.2 10.9 7.9 2.6

Total Population (mn) 47 49 51 52 54GDP Per Capita (US$) regional avg 30,851 32,653 32,333 33,057 32,815

Hydrocarbon Exports, US$bn 680.1 743.3 727.6 705.6 660.4Crude Oil Production (mn bpd) 16.2 17.2 17.3 17.4 17.4Natural Gas Production (mboe/day)// 5.7 7.7 8.0 8.2 8.4Current Account Balance, US$bn 338.0 387.3 342.9 304.6 281.1Net Foreign Assets# US$bn 1,572 1,852 2,109 2,273 2,380* The six-member states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.// Millions of barrels per day equivalent.# Official reserves + foreign assets of banks + sovereign wealth funds foreign liabilities.Sources: National authorities and projections from the International Monetary Fund (IMF) and the Institute of International Finance (IIF).


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Broader-based structureOver the past decade, the GCC countrieshave implemented many policies to spureconomic diversification, including reformsto strengthen the business climate, developFirst-World infrastructure, liberalise tradeand foreign direct investment (FDI), as wellas improving the banking systems, whichcomply fully with internationalcodes/standards of the Basel Committeeand increasing funding, particularly forsmall and medium-sized enterprises (SMEs).

Policies drawing on internationalexperience have focused on the following: Developing specific sectors and industries

in which Gulf States enjoy competitiveadvantages (notably petrochemicals).

Continued investment and upgrading ofphysical infrastructure, and promotingintra-regional trade and private investment(including through free trade zones).

Encouragement of innovation andentrepreneurship through enhancedaccess to ICT, finance and governmentgrants for research and development.

Higher spending on education, includingin science/technology and vocational industrial training schemes to enable thegrowth of high value-added sectors.

Strong macroeconomic fundamentals andgood governance have underpinned thesepolicies and initiatives. In the GlobalCompetitiveness Report 201415, the UAE isranked as the 12th most competitiveeconomy out of 144 countries, followed byQatar (16th) and Saudi Arabia (24th), withBahrain, Kuwait, and Oman also rankingamong the top 46 countries.

The IMF notes, Wide-ranging reformshave streamlined the legal/regulatoryenvironment in a number of areas, includingstart-up and licensing procedures forbusinesses, competition policies, investorand consumer rights, and bankruptcy andcompany laws.

Financial market infrastructure has beenenhanced to improve credit information andtransparency. A number of policies gearedtoward the promotion of SMEs have beenenacted (for example, through extendingaffordable bank sector loans, loanguarantees, feasibility studies, andestablishment of a national fund for SMEdevelopment in Kuwait).

Development plansWhile some variation exists across eachcountry, diversification strategies (forexample, Saudi Arabias long-term strategy2025, Vision 2020 in Oman, Vision 2021 inthe UAE, Vision 2030 in Bahrain and QatarNational Vision 2030) seek to achievesustainable growth though greaterdiversification of output and to encouragethe growth of sophisticated industries andservices, which require highly-skilled labour.

With the GCC workforce projected toincrease by some 1.2mn1.6mn nationals by2018, it will be difficult for governments inthe region to continue absorbing new labourmarket entrants, and unless employment ofnationals in the private sector rises, thejobless rate in member-countries willincrease, especially among the youth.

In formulating national agendas, there isrecognition among policymakers that GCCstates notably Qatar, Kuwait and the UAE are high-income countries already, and aretherefore unlikely to follow the developmenttrajectory of middle-income countries thathave diversified their economies bydeveloping low-cost manufacturing sectors,such as the examples followed by Thailandand Vietnam.

The cost of planned projects in SaudiArabias Development Plan (2015-19) isestimated at US$1.1 trillion. It includesschemes to develop new sectors such asautomotives, which, in turn, encourageancillary activity across related sectors.Qatar plans to invest US$182bn (excludingthe hydrocarbons sector) over 2014-18.Projects include roads, ports, rail, metro,real estate developments and a new centralbusiness district in Lusail, as well as theconstruction of eight large stadiums inpreparation for the 2022 FIFA World Cup.Infrastructure also remains a key feature ofKuwaits new five-year Development Plan(costing US$125bn) that will includeexpansion in air and seaport capacity, rail,power stations and hospitals.

Industrial clustersThe region has successfully developedenergy-related downstream industries,tourism, logistics, transportation, businessand financial services. For example, Bahrainhas invested in an offshore banking sector,while the UAE and Qatar have developedairlines and logistics, with the former (led byDubai) becoming a major trade and serviceshub in the Middle East.

Saudi Arabia is developing giant economiccities to promote technology and industrialand service clusters around hydrocarbonsand mining. Kuwait is also developingdownstream oil industries and Qatar hasestablished industrial cities to house a mixof energy-intensive industries to helpintegrate upstream and downstreamhydrocarbon activities. Meanwhile, Omanhas focused on the development of the SMEsector, considered as one of the engines ofjob creation.

20 Analysis

The continued investment and upgrading of physicalinfrastructure has played a large role in the diversificationof the region's economy (Photo: fsg777)


Bahrain has invested in an offshorebanking sector, while the UAE and Qatar

have developed airlines and logisticsTechnical Review Middle East - Issue Two 2015

Gulf producers are now budgeting for anaverage oil price of US$60 a barrel this

year, with only Bahrain expected to recorda fiscal deficit, according to the IMF


In 2013, Martin Hvidt in EconomicDiversification in GCC Countries: Past Recordand Future Trends suggested thatinvestments in chemicals and energy-intensive sectors like aluminium havehelped diversify production and exports,but industries have fewer links to the rest ofthe economy. Local supply-chains have yetto develop, and most of the advancedtechnology is still imported becauseinvestment in research and development islow. Concurrently, productivity gains andspillovers have been limited and theemployment impact of these capital-intensive industries is relatively small.

Although the GCC-bloc has receivedsizeable FDI in recent years, inflows aremostly confined to hydrocarbon-related andreal estate projects. Based on availablesectoral FDI data, some 20 per cent of FDIinflows to Saudi Arabia (in 2010) went intochemicals and refined petroleum productsactivities, and another fifth targeted thebuilding industry. In the UAE (2011) one-fifthof FDI inflows went to the constructionsector, another 20 and 10 per cent,respectively, targeted wholesale and retailtrade. While, in Qatar, a mere four per centwent to trade-related activity in 2011. FDI inthese sectors has not led to technologytransfers that could support increased exportquality or sophistication in future years.

Low productivityTo date, the regions diversificationstrategies have yielded mixed results. TheGCC oil-funded growth model hasdelivered tangible socioeconomic gains overthe decades, reflected in increased public-sector employment and spending on basicinfrastructure. This has helped raisestandards of living on a level with advancedOECD economies and supported privatesector activity, especially in sectors such asconstruction, trade and retail, transport andhospitality. With dwindling governmentrevenues, however, this growth model maybe unsustainable over longer-term.

Moreover, despite decent GDP growth,total factor productivity (TFP) growth (i.e.the quantity of goods and services producedusing available machinery and other capital)for the non-oil economy has been negative.

Private economic activity geared heavilytowards meeting the consumption andinvestment needs of local markets islargely concentrated in low-skilled non-tradables sectors. These trends contrastwith other emerging market regions, wherefirms are engaged in both domestic andinternational trade.

The region has made steady progress indiversification; the share of the GCChydrocarbon sector to real GDP fell fromtwo-fifths in 2000 to one-third currently, theIIF estimated. But hydrocarbons contributionto total budget receipts remained high at 84per cent on average in the past three years,although down from 97 per cent in 1984.

The authorities have yet to broaden theirdomestic revenue base. Still, there is a highcorrelation between oil-price and non-oilgrowth in the GCC countries, but progresswith export diversification, a key ingredientto a vibrant economy, remains lacklustreacross the region.

While most GCC countries have longer oiland gas production horizons (see Table 2),fossil fuels are exhaustible resources. Withplunging oil prices, the need fordiversification is once again highlighted.Reducing heavy reliance on thehydrocarbons sector would boostproductivity growth, strengthen economicpotential and combat periodic volatility ofGulf States output.

The next issue of Technical Review willdiscuss steps needed to foster a moredynamic export-oriented production base in the Gulf region.

22 Analysis

Kuwait has been developing its downstream oilindustry, while Qatar has established a numberof energy-focussed industrial cities


Financial market infrastructure has beenenhanced to improve credit information

and transparency, and a number ofpolicies geared toward the promotion of

SMEs have been enacted


Table 2: hydrocarbons reserves of GCC ProducersEnd-2013

Proved Oil reserves~ r/P ratio* Proved Gas reserves~ r/P ratio*Bn barrels Trillion cf

Kuwait 101.5 89.0 63.0 100+Oman 5.5 16.0 33.5 30.7Qatar 25.1 34.4 871.5 100+Saudi Arabia 265.9 63.2 290.8 79.9UAE 97.8 73.5 215.1 100+

GCC Total 495.8 1474World Total 1687.9 53.3 6557.8 55.1GCC (%) of World 30.0 22.5~ Proven reserves refer to those quantities that geological and engineering data indicates with reasonable probability can berecovered in the future from known reservoirs under existing economic and operating conditions.* reserves-to-production ratio - If the reserves remaining at the end of any year are divided by the production in that year, the resultis the length of time that those remaining reserves would last if production were to continue at that rate.Source: BP Statistics Review of World Energy June 2014.


S06 TRME 2 2015 - Analysis 02_Layout 1 23/02/2015 14:53 Page 23

SOLID WASTE MANAGEMENT isone of the most serious challengesfaced by all countries across theMiddle East. The high rate of populationgrowth, urbanisation and economicexpansion is accelerating consumptionrates and the generation of ever increasingvolumes of a wide variety of waste.

Per capita waste generation in the GCCcountries is one of the highest worldwide,with estimates putting the total volume ofwaste produced in the region as likely tohave reached 130mn tonnes in 2014,according to a recent whitepaper1 by Frost& Sullivan. Some sources suggest thevolume may now surpass a total of 150mntonnes a year.

A large proportion of this waste comesfrom construction and demolitionactivities, with municipal solid waste(MSW) the second-largest source.

Municipal solid waste generation inthe GCC regionTABLE 1Country Estimated million tonnes per year

Saudi Arabia 15UAE 6Qatar 2.5Kuwait 2Bahrain 1.2-1.5Oman n/aSource: Various

Much of the regions solid waste is disposedof in unregulated landfills, due in large partto ineffective waste managementlegislation and planning, as well as a lack ofsocial awareness. In addition to taking upvaluable space in countries where landavailability is limited, such as in Kuwait,Bahrain and Qatar, landfills present a wholearray of sanitation and environmental

In a bid to get to grips with their mounting waste challenges, GCC countries are seeking sustainable solutions to wastemanagement, including waste-to-energy (WTE) schemes. But the pace of progress in the region as a whole is notmatched by the increasing volumes of waste generated. Lynda Davies reports.

Tackling the waste burden with WTE

24 Waste Management


Waste-to-energy isnot only a potentialsolution to reduce

the volume of wastegoing into landfill,but it can provide a

supplementalenergy source


A large proportion of the waste generatedthroughout the GCC originates from construction

and demolition activities (Photo: John Nyberg)


ated tion

erg)


issues; not least of which is thatconventional landfill sites are a significantsource of greenhouse gases.

In a bid to get to grips with their mountingwaste problems and increasingly mindful ofthe growing environmental issuessurrounding landfill waste disposal, policy-makers and urban planners in the regionwith varying degrees of success have beenseeking sustainable solutions to wastemanagement, including waste-to-energy(WTE) schemes.

Waste-to-energy is not only a potentialsolution to reduce the volume of wastegoing into landfill, but it can provide asupplemental energy source, said oneenergy analyst.

Singapores Keppel Seghers, whichdesigned, built and operates the regionsfirst domestic solid waste managementcentre in Qatar, believes the GCC region hasthe potential to become the leader in theWTE sector. However, the pace of progressin the region has not been matched by theincreasing amount of waste generated.While Qatar, along with the UAE emirates ofSharjah and Abu Dhabi, are leading the way,

WTE initiatives and other solid wastemanagement plans elsewhere in the GCCregion are making slow progress.

According to Frost & Sullivan, the totalenergy produced from waste in GCCcountries currently amounts to onlybetween 0.25-0.3 terawatt-hours (TWh).

Expansion in Qatar Qatars only domestic solid wastemanagement centre (DSWMC) nearMesaieed was commissioned in June 2011and includes three WTE incineration units.The WTE units have a combined capacity toprocess 1,500 tonnes of waste a day andgenerate 48.4MW of electricity. Some15.4MW of the electricity is consumed on-site and the balance 33MW is supplied toQatar General Electricity and WaterCorporation (Kahramaa) for the nationalgrid.

In addition to the WTE plant, the DSWMCincludes waste sorting and recyclingfacilities, an engineered landfill and ananaerobic digestion composting plant. It canprocess a total of 2,300 tonnes of mixeddomestic solid waste per day. The waste

management centre is helping Qatarachieve its goals to reduce waste sent tolandfills from 92 per cent to 64 per cent, andraise solid waste recycling rates from eightper cent in 2012 to a target 20-25 per cent.

The country produces more than 2.5mntonnes of municipal solid waste each year,while per capita waste generation isvariously estimated at between 1.6 and 1.8kg per day.

Waste generation is estimated to begrowing at a rate of 10 per cent per year inQatar and the countrys government isevaluating an expansion of MesaieedDSWMC, with environmental technologyfirm Keppel Seghers submitting anexpansion proposal to add an additional3,000 tonnes per day of waste handlingcapacity.

Cleaning up in the UAEThe UAE is grappling with one of the highestper capita waste generation rates in theworld, with waste generation running atapproximately 2.5 kg per person a day, ofwhich the majority ends up in landfills. Buttwo emirates, Abu Dhabi and Sharjah, areturning to WTE plants to reduce thepressure on landfill sites and provideadditional greener energy.

In Sharjah, site preparation work isunderway at what will be the worlds largestmunicipal waste gasification plant. In May2014, government-controlledenvironmental services and wastemanagement company Beeah awarded aUS$455mn contract to UK firm Chinook

26 Waste Management

Abu Dhabi has plans in place to build a 100MW WTE plantnear the seaport of Mussafah (Photo: Norbert Nagel)


The UAE is grappling with one of thehighest per capita waste generation rates inthe world, with waste generation running at

approximately 2.5 kg per person a day



Sciences, which designed the facility, tooversee the construction of the plant.Located at Beeahs existing WasteManagement Centre in Sharjah IndustrialCity, the plant will utilise Chinookscommercially-proven ATT technology andhave the capacity to treat 400,000 tonnesannually of a wide range of municipal solidwaste and commercial and industrialwastes, generating up to 85MW of power.Under the terms of its contract, Chinook isco-ordinating the manufacture, shipping,installation, construction andcommissioning of the plant, which isexpected to be operational in approximatelytwo years time.

The WTE project forms part of Sharjahszero-waste to landfill strategy, announcedin 2011. Beeah is driving the initiativewhich aims to divert 100 per cent of theemirates waste from landfill to recycling,energy production and other resources bymid-2015. To date, Beeahs recycling andmaterial recovery programmes havediverted 55 per cent of Sharjahs wastefrom landfills.

In Abu Dhabi, per capita waste generationis some two kilogrammes per person perday. Around 33,000 tonnes per day of wasteis produced daily across the emirate,according to a presentation last year by AbuDhabi National Energy Company (TAQA)2,the majority of which is disposed of in non-engineered landfills.

More than one million tonnes ofmunicipal solid waste alone is generated inAbu Dhabi every year and, according to theAbu Dhabi Environment Agency (EAD), thisfigure is expected to increase byapproximately six per cent annually.

To help address its mounting wasteproblems, the emirate is developing a100MW WTE plant planned to be built nearthe seaport of Mussafah. The facility will bedesigned to process approximately onemillion tonnes of municipal solid wasteannually, utilising the mass burn, movinggrate incineration technology.

TAQA has been tasked by the Abu DhabiCentre of Waste Management (CWM) withthe responsibility for designing, building,financing, and operating and maintainingthe WTE plant. The company will recoupcosts through charging CWM a wastedisposal fee and selling electricity toADWEC, according to the TAQApresentation.

In November 2014, TAQA and CWMstarted the qualification process for theengineering, procurement and construction(EPC) of the plant. When fully operational,the facility will save 1,637,000 tonnes ofCO2 emissions per year, according to TAQA.

Dubai Municipality, in partnership withDubai-based Green Energy Solutions &Sustainability LLC, started up the GCCregions first landfill gas recovery system atone of the emirates largest landfill sites, AlQusais, in January 2013. The collected gas isbeing safely flared, with a small portionutilised for electricity generation (1MW) inthe initial phase, which provides all theelectrical needs of the landfill and DubaiMunicipality site offices.

The facility has been named Station2020 because it is aimed to eventually havea 20 MW capacity and run for 20 years. TheAl Qusais landfill receives about 5,000tonnes of waste daily, roughly half of thewaste generated in Dubai.

Progress in Kuwait In Kuwait, the PPP procurement authority,Partnerships Technical Bureau (PTB), incollaboration with Kuwait Municipality, iscurrently evaluating requests forqualification for a 3,275 tonnes per day(approximately one million tonnes per year)municipal solid WTE project in the Kabdarea, 25km away from Kuwait City. As withQatars DSWMC, the Kabd project is beingundertaken as a design, build, finance,operate and transfer structure.

The PTB is aiming for a 2016 start-up ofthe facility, which will have the capability togenerate 650GWh/year. The surpluselectricity will be sold to the Ministry ofElectricity and Water Municipality (MEW).

Kuwait generates an estimated twomillion tonnes a year of municipal solidwaste, almost all of which currently is sentto landfill. In addition to the Kabd project,the country also is considering establishingtwo further WTE projects each with solidwaste-handling capacity of 600,000 tonnesper year, to be located at Al Jahra and MinaAbdullah. The PTB currently aims for theselatter two plants to be operational in 2020.

In July 2014, Bahrains Municipalities andUrban Planning Affairs Ministry announceda WTE project, to be located near thecountrys only landfill site at Askar, was tobe re-tendered. The ministry earlierterminated an agreement with Frenchgroup CNIM, which dated back to 2008, forthe development of a WTE plant on a Build-Operate-Transfer basis under a 25-yearcontract.

The proposed facility was to have capacityto treat 390,000 tonnes per year of solidwaste and generate 25MW of electricity.The ministry cited the French groups failureto address environmental concerns as thereason for cancelling the contracts whileother sources reported that the ministryhad failed to provide CNIM with anagreement licence. At the time of writing,there was no further news of a new tenderbeing issued.

Saudi Arabia plans to include 3GW ofWTE and 1GW of geothermal projectsamong its ambitious renewable energytargets by 2032. The country generatesmore than an estimated 15mn tonnes ofmunicipal solid waste per year. Per capitawaste generation is estimated at 1.5-1.8kgper person per day. Omans initiatives tomanage its waste include the developmentof 13 engineered landfills aimed at closingall of the countrys 300-plus traditionallandfills. At least three engineered landfillshave been opened to date.

28 Waste Management

Announced in 2011, Sharjahs zero-waste to landfillstrategy aims to divert 100 per cent of the emirateswaste from landfill to recycling, energy production andother resources by mid-2015 (Photo: John Nyberg)



S07 TRME 2 2015 - Smart Grids 01_Layout 1 23/02/2015 14:54 Page 29

The recently-concluded WorldFuture Energy Summit (WFES) atAbu Dhabi showcased the interestof MENA nations to develop energy projectsand develop a sustainable future. Withmega projects being lined up across theregion, there is a strong need for reliableelectricity systems such as smart grids tosustain and enable smooth performance ofpower projects.

Smart grids utilise the latestcommunication technologies to introducethe use of computer-based controls andautomation to electricity systems used byutilities. They are being extensively used inelectricity networks, power plants, windfarms, businesses and in homes. Smart gridsmade a foray into the Middle East onlyrecently power major Alstom launched thefirst smart grid centre in Dubai last year,which was considered a major step towardsdelivering sustainable electricity to the UAE.Grgoire Poux-Guillaume, president of

Alstom Grid, stated that as smart gridtechnologies are integrated into existinginfrastructure, customers in the regionwould benefit from the centres close links toAlstoms state-of-the-art smart grid centresin France and the USA, using tools andprocesses with the latest technologies, andongoing support from Alstom expertsworldwide in real time.

With time, technology has rapidly grownwithin the smart grid industry. Abu DhabiWater and Electricity Authoritys smart gridproject is considered a landmark ICT project,and has highlighted the utility of systemssuch as Advanced Metering Infrastructure(AMI), Supervisory Control and DataAcquisition (SCADA) and smart metering.Recently, Landis+Gyr and Ericsson havecollaborated to offer smart meteringsolutions for smart grid environments inMiddle East cities. While one of the mainchallenges of smart grid monitoring isconnectivity, transmission of data and

A look into how the smart grid market is faring in the GCC, and why there is a need to increase investments in the sector.

Stepping up efficiency inpower solutions

30 Smart Grids


Smart grid analytics market is expected to touchUS$5.5bn by 2019 with a CAGR of 25 per cent,stated Markets&Markets

Due to economicdiversification and

increase inrenewable energy

investment, there isoptimism

surrounding thesmart grid solutions

market in theMiddle East



32 Smart Grids


ensuring seamless operations, Siemenshopes to create smart energy networks tocollect large amounts of data and alloweffortless grid management.

Smart grid market to growResearch firm Markets&Markets expects thesmart grid analytics market to reachUS$5.5bn by 2019 at a CAGR of 25 per cent.Several companies such as Siemens, Ericssonand Schneider Electric have begun focussing

their research on improved smart grids forthe Middle East. And the research firm Frost& Sullivan said that while GCC nations arestill picking up on the technology, they areexpecting an investment close to US$73bn inthe next five years on grid solutions, smartmetering solutions and improved powertransmission. Sitaram Chodimella, head ofthe smart grid division of Siemens LLCMiddle East, said, We see enormouspotential for implementing smart grid

solutions in the GCC, especially as the regionmoves towards economic diversification andincreased reliance on renewable energy.

Preparing for the changeDespite the vast number of opportunitiescropping up in the region, industry expertshave observed that technology majors in theMiddle East are carefully evaluating smartgrid requirements. To ensure each countryinvests in the right kind of technology, pilotprojects are being undertaken before a massroll-out. Enterprise software company C3Energy has initiated smart grid technologyworkshops in Asia, the Middle East andSouth America, and has been involved intrade mission activities to educate andinform investors, and gain better insightsinto a countrys smart grid requirements.

Smart grid solutions are gaining relevance in the Middle East due to the rise in renewable energy projects

Before investing in smart grid solutions,investors are carefully evaluating the

various technologies and assessing whattheir requirements really are



S08 TRME 2 2015 - Intelligent Building 01_Layout 1 23/02/2015 14:55 Page 33

COUNTRIES IN THE Gulf are makingsignificant progress in the world ofgreen buildings and embracingsustainable technologies, which is beingdriven by the increasing number ofgovernment policies and initiatives in theregion, according to a recent study byconsultancy company Ventures Middle East.

Released in February 2015 in the run upto The Big 5 Saudi, the report entitled Focuson Sustainability in Construction stated that,while it is true that the Gulf has not been asquick as other parts of the world inadopting green building initiatives, the slowtake off comes down to three key reasons:lack of legislation, absence of visiblefinancial incentive and limited awareness ofenvironmental issues.

The increasing adoption of green buildingpolicies is significant considering that theGCC region boasts such a strongconstruction and infrastructure sector. Infact, in 2014 alone the GCC sawUS$128.4bn worth of construction projectsget underway.

Nicholas Webb, managing partner ofStreamline Marketing Group, the organisersbehind the Outdoor Design & Build Show,

which is being held in Dubai from 13-15April 2015, said, GCC countries areincreasingly embracing sustainable andgreen building development as they look forlong-term economic growth and to improvesocial infrastructure.

In regards to the US construction codingsystem LEED, the UAE is leading the region,having accounted for 67 per cent of 1,236

LEED-rated projects in the region in 2013.This is followed by Qatar and Saudi Arabiathat only accounted for 16 per cent and 13per cent projects, respectively.

The UAE and Qatar are, reportedly, theonly countries in the region to have formallyintroduced green building codes, while inSaudi Arabia the Saudi Green BuildingCouncil is currently working on its ownregulating and ratings system similar to theLEED rating.

In line with the Dubai Supreme Council ofEnergys plan to build energy-efficientbuildings in the emirate, by 2030approximately 30,000 of Dubais 130,000buildings are expected to adhere toefficiency improvement measures.

Moreover, under its 2015 strategic plan,Dubai has put in place new regulations thatimplement green building specificationsand standards which, according to thereport by Ventures, are likely to lead toconsiderable savings in terms of energy,water, cooling and heating.

While in Abu Dhabi, the Estidamainitiative, a green building integratedprogramme, is said to be addressing

A recent study published by Ventures Middle East has highlighted that the GGC countries are making significant progress in thefield of green building projects. We look at how this is reflected in the regions construction industry and building infrastructure.

Branching out ingreen building solutions

34 Intelligent Buildings


KAUST in Saudi Arabia is said to beworld's largest LEED NC-Platinum

project (Photo: Karl-Joseph)



36


sustainable development throughout theUAEs capital. It does this throughcombining guidelines and regulations forsustainable design, construction andoperation of buildings and communities.

The role of Saudi Arabia in the greenbuilding market, however, should not bedownplayed. Faisal Al-Fadl, the head of theInitiative of Custodian of the Two HolyMosques for Green Building, has beenreported saying that the kingdom accountsfor 15 per cent of the green buildingprojects in the Middle East this year.

Furthermore, more than 20mn sqm ofland in the Saudi Arabia is allegedlyoccupied by green buildings, which isexpected to double in 2015. Most of thesedevelopments are expected to be based inRiyadh, with investments of US$53bn.

Robb Marinko, landscape architecturemanager at Dar Al Riyadh Architectureand Design Services, speaking ahead of theOutdoor Design & Build Show, said,Sustainability is becoming more and moreimportant to the Saudi market, we areseeing dramatic changes in how developersapproach the market and how outdoorspace is used.

One example of the major green buildingprojects underway in the kingdom includesthe King Abdullah University of Science andTechnology (KAUST), which is said to be theworlds largest LEED NC-Platinum projectever built.

Incorporating modern technology, thecampus design was created with maximumsustainability and minimum energy use inmind. Those technological features includeenergy-generating photovoltaic (PV) panelsthat cover the roof and, with a nod totraditional Arabic architecture, large solar-powered wind towers, which harnessenergy from both the sun and the wind tocreate air flow in the pedestrian walkways.

According to the report, as the Gulf isrelatively new to the world of greenbuilding concepts there is plenty ofbusiness opportunities for manufacturersand suppliers. Some of the key industriesand technologies to see innovations in linewith the green building policies include theHVAC industry reportedly two-thirds ofthe electricity in a building is consumed byair-conditioning fire protectionmechanisms, faucets electronic andmetered faucets can save water by 40-77per cent and lighting.

Lighting is a particularly big market in theGulf and is set to grow. In fact, thecommercial lighting fixtures market is set toincrease by eight to 10 per cent annually in

the region and is expected to be worthUS$3.7bn by 2018.

Therefore, lighting is one industry thathas seen a lot of innovation in terms ofsustainable technologies and intelligentbuilding solutions. One company that hasrecognised and invested in intelligent andintegrated lighting solutions is Eaton, theglobal technology major in powermanagement solutions.

On the topic of lighting controls, AshiquePanakkat, sales leader of the electricalsector for Eaton Middle East, said,Networked lighting controls are one of thekey components that go into creating anintelligent building.

He added, The lighting control systemsin these types of extensive and complexmulti-use buildings are built aroundcompletely distributed intelligence networktopography, with multiple levels of userinterface and modes of operation.

One example the international powermanagement company gave of the benefitsof a network system was a daylightharvesting strategy, which can be deployedto save on unnecessary artificial lighting inareas close to windows, while detectors canbe utilised in less frequently used spaces,such as corridors, to dim or switch lightingat low use times.

As a sustainable and affordable source oflighting, LED lighting, which has beenproven to be up to 70 per cent moreefficient than traditional sources, is also afast-growing business in the Gulf.

In the UAE, new lighting standards hasmeant there is a ban on the sale of bulbsthat do not reach certain energy-efficiencycriteria, which is intended to ensure thatthose bulbs available are energy-efficient,longer-lasting, safe, and have limitedhazardous chemicals.

One example of a building that havesuccessfully benefitted from implementingLED lighting is Grosvenor House in Dubai.Working with GE Lighting the hotel adoptedLED lighting throughout its two 45-storey

towers that house 749 rooms, suites andapartments, in line with its green policy topromote energy-use efficiency.

Prior to the LED upgrade, more than24,500 halogen lamps were identified in thelighting audit and, following theimplementation, GE Lighting has claimedthat the total energy savings per yearthrough its LED lighting solutions is around80 per cent.

Pam Whilby, general manager of theGrosvenor House, said, We adopt andmaintain world-class environmentalstandards and develop the requiredmechanisms for implementing them[]adopting LED lighting solutions wastherefore a natural fit to our sustainabilitygoals. GE Lightings LED solutions deliversignificant energy savings in addition tominimising carbon dioxide emissions.

Looking beyond lighting and to moreintegrated solutions, Eaton offers customersits xComfort, a wireless home automationsystem which works on a domestic level tohelp home-owners control, co-ordinate andoptimise multiple functions. This includeslighting controls, indoor HVAC control,safety functions and energy management.

One of the major advantages of utilisingthis system is that through the smartcontrol of temperature, lighting andelectrical equipment the operator is able tolower power consumption. xComfort alsoallows one to implement functions thatreduce heating and energy consumptionwhen they are not required, and it canmonitor power which is produced by thesolar PV.

The Gulf is not only a region full ofconstruction and infrastructure investmentsbut is also a region that, with the increasingadoption of government policies andinitiatives, has an ever-growing enthusiasmfor green building and intelligent buildingsolutions. This, in turn, is driving furtherbusiness opportunities and potential forcompanies working in the infrastructureand building utilities industries.

Intelligent Buildings

Faucets are one piece of technology undergoingenergy-efficient innovation (Image: Cayusa)


S09 TRME 2 2015 - Saudi 01_Layout 1 23/02/2015 14:56 Page 37

CONSTRUCTION WILL BE one ofthe leading sectors of the SaudiArabian economy this year, makingThe Big 5 Saudi exhibition more relevantthan ever. Under the patronage of PrinceMansour bin Mutaib bin Abdulaziz Al Saud,Minister of Municipal and Rural Affairs, thefifth edition of The Big 5 Saudi will be held inJeddah, Saudi Arabia, from 9-12 March 2015at the Jeddah Centre for Forums and Events.

The show has grown 90 per cent over thepast four years exhibitors have increasedfrom 300 to more than 500, visitors from9,000 to 15,000 and event space from 7,000sqm to 20,000 sqm, said the organisers.

Nathan Waugh, event director of The Big5 Saudi, said, The Saudi construction sectoris one of the most significant economicdrivers in Saudi Arabia, and has played amajor role in the countrys development.We are proud to have seen The Big 5 Saudigo from strength to strength and celebrateits fifth anniversary this year.

Why Saudi Arabia for construction? The GCC construction market value by theend of 2014 was projected to have grown7.7 per cent, according to Ventures MiddleEast. Saudi Arabia and the UAE were leadingthe market in terms of project volume. Itappears this trend has been carried forward

into 2015, with US$200bn worth ofcontracts is likely to be awarded this year. Anumber of major infrastructure projectssuch as railways, roads, buildings, ports andthe expansion of existing facilities haveplaced Saudi Arabia at the forefront ofdevelopment in the GCC.

The fifth edition of The Big 5 Saudi will be held from 9-12 March in Jeddah, Saudi Arabia, where industry leaders andexperts will converge to discuss the myriad possibilities in the countrys construction landscape.

Building a new future inthe Kingdom

38 Construction


An artistic representation of the KingdomTower in Jeddah, which has been describedby architect Adrian Smith as a new visionfor Saudi Arabia

Majorinfrastructure

projects such asrailways, roads,

buildings and portshave placed Saudi

Arabia at theforefront of GCC

development



With the fillip in mega projects, severalsectors and industries such as aluminium,precast concrete and cement are alsogetting a boost. A Transparency MarketResearch report has stated that thecement market in Saudi Arabia will grow ata CAGR of 5.14 per cent from the period2014 to 2019.

Significant development projects inSaudi ArabiaOne of the most important projectsunderway is the Kingdom Tower in Jeddah.Touted to be the tallest structure in theworld at a height of 1,007 metres, theUS$1.2bn tower will be the commercialcentre of the city. The building is expectedto be completed by 2017, and will havemore than 200 floors along with theworlds highest observation deck on the157th floor. Liebherrs cranes have beenroped in to aid with the construction,German company Bauer will provide thefoundation work, EC Harris and Mace willmanage the project and Kone will providethe elevators for the tower.

In an earlier interview, Prince Al-Waleedbin Talal said, The time is appropriate tobuild the Kingdom Tower now because theprices for construction materials are low.From cement to iron, everything is low.Secondly, it is being built in Jeddah,because this city needs a project of thiskind, as it would attract more businesshere. Nothing of this size has happened inJeddah for more than two decades.

In addition, the Saudi Arabiangovernment is keen on providing a boostto the Economic Cities programme. The

late King Abdullah bin Abdulaziz washeralded a game changer for theKingdom, as he patronised a host ofwelfare projects such the Economic Citiesprogramme. The King Abdullah EconomicCity (KAEC) located on the Red Sea, nearly97 km north of Jeddah, is one of the fivespecial economic zones expected to bringabout diversity in the Saudi Arabianlandscape. The project has four majordevelopments King Abdullah Port,Industrial Valley, The Coastal Communitiesand Hijaz Downtown. The intention behinddeveloping this mega project is to slowlywean the Kingdom off its dependence on

oil, and focus on other sectors such asmanufacturing, construction andindustries such as minerals and plastics.

The budding construction landscape inthe Kingdom makes it apt to host the fifthedition of The Big 5 Saudi. The earlieredition of the show set a precedent for theregion attendees included businessdevelopment managers, marketingmanagers, directors, chief executives andpresidents of companies, structural, civil,electrical and geotechnical engineers,facilities managers, project managers,quantity surveyors and purchasingmanagers. There was due representationfrom real estate developers,manufacturers, trade associations,building consultancies, architectural anddesign companies, concrete contractors,engineering firms and governmentrepresentatives. Based on surveys taken atthe show last year, participants highlightedthe main reasons for attending as sourcingnew products, networking, locating localdistributors, and learning about regionalproducts, trends and the latestinnovations. Ninety-eight per cent of theattendees stated that they will return tothis years show.

This year, for the first time, there will beContinued Professional Development(CPD) certified education courses forattendees. The seminar series will giveattendees free access to 12 sessions andpanel discussions including five projectshowcases. All these educational featureswill help visitors further their constructioncareers, stated organisers.

40 Construction

King Abdullah Economic Citys Labor Village housing complex, which will provide accommodation for 2,500workers and supervisors

Saudi Arabias cement market is expected to grow at a CAGR of 5.14 per cent until 2019, further establishing thecountrys construction sector



S10 TRME 2 2015 - Glass 01_Layout 1 23/02/2015 14:58 Page 42

S10 TRME 2 2015 - Glass 01_Layout 1 23/02/2015 14:58 Page 43

A DVANCED ARCHITECTURALGLASS supplied as brandedproducts by specialisedmanufacturers such as SunGuard andPilkington (part of the NSG Group) can beused to earn building designers,constructors and operators covetedcertification points from localadministrators of the universally-acclaimedLEED certification system.

LEED certificates are awarded for newly-built project designers, constructors,operators and maintenance teams thatenhance the indoor built environment andprotect conditions outside too. Proper useof treated (usually coated) float glass cansubstantially enhance both the appearanceand functionality (performance) of astructure and save a considerable amountof energy in its use by transmitting moredaylight and reducing the requirement forair conditioning by low emissivity.

A separate system of points is awardedto qualified major renovators. There are sixprincipal categories of performance that

lead to the award of designated numbers ofpoints these are regularly updated toreflect advances in glass coating technologyand regional needs. The Gulf cities are amajor international testbed for theseversion upgrades.

As paraphrased, the original sixcategories, still widely appliedinternationally and involving substantialoverlapping, are:

Of these, the first two are mostsignificant locally in terms of the number ofpoints that can be earned and used as asales promotional tool in many differentways (including enhancement of rentalincome). These are particularly importantin the MENA region where low emissivity is

a now key requirement for acceptable new-build performance.

Energy and application is a generalcategory that is designed to exploit theoptimisation of the energy consumption ofthe building under all conditions, includingduring the construction phase. Thisincludes minimising its energy sink ordraw effect on the local environment, i.e.reducing power demand through maximumuse of natural daylight and minimisingaircon use. Proper choice and applicationof materials can, it is claimed, reduceoverall building energy demand by as muchas 10 per cent in a new-build scenario (justhalf this for a renovation project).

Maximum incorporation of solar controlfloat glass is the normal practice, and thisusually enhances the quality of the indoorenvironment at the same time.

The other major glazing product that canbe used to earn a substantial number ofLEED points in this category is suitablechoice and positioning of thin-film andother photovoltaic panels, such as are nowbeing heavily promoted for retro-installation on domestic rooftops in Dubaiparticularly.

NSGs wide TEC range of materials is agood example, although it must be stressedthat points are normally awarded for thequality of the design and application,rather than the use of a specific brand ofproduct. Such points can also be earnedunder the regional priority category.

Appropriate choice of materials andresources can enhance the greencredibility of a newly-built structureconsiderably. Advanced glassmanufacturers incorporate a considerableproportion of re-melted high-grade culletfrom their own trimming operations thisis an obvious way of saving on both physicaland energy resources. Extensive use ofappropriate local sands is another way ofearning points in this category.

Glass specially produced for incorporation in sustainable buildings can be used to earn points under the LEED GreenBuilding Rating System

Documents

Technical Review Middle East 2 2015