Construction Business News
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THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS DECEMBER 2015 Managing Director of Al Ruwad Real Estate, Ismail Al Hammadi, talks perception, progress and preparing for the Emirate’s next chapter THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS April 2016 The Long Game
construction business news me April 2016 3 EDITOR’S NOTE NEWS SUPPLIER NEWS COVER STORY Managing Director of Al Ruwad Real Estate, Ismail Al Hammadi, talks perception, progress and preparing for the Emirate’s next chapter IN PERSON PNC Menon, chair of Sobha Group, discusses the cyclical nature of a real estate business and how to survive and thrive despite the challenges ANALYSIS Experts from the regional construction industry voice their concerns for the future of women AEC professionals Experts discuss how the energy efficiency movement has transformed the construction industry in the Middle East Regional rail experts discuss the region’s biggest cross-country project, GCC Rail, and share some of the challenges the sector faces with budgetary concerns 6 8 16 20 26 30 34 38 20 26 contents
construction business news me April 2016 4 S U B S C R I B E c o n t r i b u t o r s subscriptions@bncpublishing.net Managing Director Walid Zok walid@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Director Wissam Younane wissam@bncpublishing.net Group Publishing Director Diarmuid O'Malley dom@bncpublishing.net Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 Group Editor Melanie Mingas melanie@bncpublishing.net Editor Lorraine Bangera lorraine@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Sales Manager Mostafa Abdo mostafa@bncpublishing.net +966 56 6695 333 Sales Manager Vishvanath Shetty vish@bncpublishing.net +971 52 6745378 Marketing Executive Mark Anthony Monzon mark@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Construction Business News ME contact sales@bncpublishing.net T +971 55 339 5097 All rights reserved © 2015. Opinions expressed are solely those of the contributors. Construction Business News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Construction Business News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Construction Business News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by International Printing Press www.ippuae.com Stuart Matthews Marlow McGuinness Ltd --------- Abhi Shek Photography TAKE 10 Construction Business News ME looks at the top 10 innovative suppliers in Middle East’s construction industry REAL ESTATE John Stevens analyses the UAE property market and if this the opportune time to invest COMMENT Haider Tuaima, research manager at ValuStrat, highlights the challenges and processes involves in quantifying Dubai’s real estate supply PROJECT REVIEW Etihad ESCO talks about achieving 75% measured and verified electricity savings at Dubai Electricity and Water Authority power stations Q&A Yasser Boudastour, project engineer at the Jahra Road Development Project, talks about the delivering an largescale infrastructure project SUPPLIER CORNER Rami Hajjar, general manager of Philips Lighting Middle East, discusses how lighting could play a huge role in energy saving SAVE THE DATE BUILDING MATERIALS EDITOR’S PICK 40 46 48 50 54 60 62 64 66 38
construction business news me April 2016 6 A man's world T he construction industry has been more or less male-dominated for as long as anyone can remember where women have often been perceived as delicate, not fitting into the hardness of construction. This has not just been a regional issue, but has been common worldwide. According to research by Union of Construction, Allied Trades and Technicians, more than half wom- en in construction in the UK state that they have faced bias because of their gender. Some experts say the recent figures have been improving, but it is still not nearly enough to be equal to the male statistic. This sort of stereotyping of women has not only deterred women from entering the business it has also deprived the industry from acquiring some talented personnel. According to B20 Employement Taskforce, in collaboration with A.T. Kearney, closing the gender gap could add 12% to the size of the total OECD economy by 2030. A.T. Kearney’s discussion on International Women’s Day revealed three barriers women in all industries essentially face sooner or later. These include: lack of motivation, family ob- ligations, and maternity breaks. Lack of motivation begins early on when young women realised the lack of support and presence of other women in the indus- try. There are handful of women working in technical departments and for a new female employee the task of working amongst count- less men could be quite unnerving. The lack of women in leadership roles could also be discouraging and paints a very negative pic- ture about the role of women in a company. This pushes women to opt for more “women- friendly” departments like human resources or communications which are more support- ive roles rather than the core. Another barrier most women face is to bal- ance their personal life and work life. Most women, especially in the region, have been burdened with the responsibility of running a household along with having a full-time job. Though men too, have to learn to balance their life, are not held liable as much as woman or a mother is. This kind of liability holds on to most women making it difficult to create a balance and move ahead in their careers. Most working mothers, however, admit that it is the time-off during maternity that tremendously affects their career growth. Taking a break for months or a year messes up their career timeline. This demotivates most women as they see their peers climb- ing the corporate ladder while they are either stuck or trying to make their way back up. What most women employees need are role models, mentors, and support systems, to help them sustain. The truth is it could be very difficult to achieve gender equality almost instantane- ously. Transition is slow but ongoing, and until then women need to team up, motivate one another, and push themselves to achieve their own dreams. editor’s note Lorraine Bangera Editor
construction business news me April 2016 8 For News, features and more, Visit www.CBNme.com Follow us on twitter for breaking news: @cbn_ME Follow us on Facebook for up-to-the-minute breaking news Read the latest edition on www.CBNme.com NEWS Fujita Corporation awarded Drake and Scull Rail (DSR) a $93.3m contract to deliver the first phase of the Doha Metro Depots. Fujita Corporation is undertaking the construction of the Red and Green Lines of Doha Metro’s Depots. According to the agreement, DSR will undertake the supply, installation, testing and commissioning of all MEP building ser- vices to be provided in the depot and stabling yard pertinent to the Red and Green lines and their associated buildings with a scheduled delivery slated for 2019. DSR will also be actively involved in the design verification process as a participant in the design review meetings. Ahmad Al Naser, managing director at Drake and Scull En- gineering said: “The Doha Metro Phase-one project is a land- mark urban transport project in the GCC region and our sec- ond major rail project following the Airport Passenger mover at the Dubai Airport. “We look forward to successfully executing and delivering the project in collaboration with our sister company DSI Qatar.” Drake and Scull Rail wins $93.3m Doha Metro phase-one contract Ahmad Al Naser To combat low oil prices, Qatar revealed it will be passing a law covering the use of public- private partnerships (PPPs) by the end of this year, Reuters reported. The Ministry of Economy and Commerce stated it would submit a draft PPP law to the cabinet by mid-2016, ministry official told the agency on 15 March 2016. “We hope to have the frame- work completed and start implementing the law by the end of the year.” He added that the new framework would will include a PPP programme to build between 10 and 12 public schools in the next two years. Regional newspaper Gulf Times reported that investment spending in real estate and transport between 2015 and 2017 is estimated to be around $70bn to $80bn a year, as said by QNB Group CEO Ali Ahmed al-Kuwari during a MEED Qatar Projects conference on 14 March 2016. The Qatar government has been increasingly interested in PPPs especially for the delivery of its infrastructure projects, according to partner at Charles Russel Speechlys Simon Green. In his article, he stated: “It is clear that given the number of projects connected with the Qatar 2030 Vision, alternative procurement structures will need to be considered to help alleviate the public sector burden.” Qatar to pass PPP law by end of 2016 Dubai Properties began the construction of its flag- ship project, 1/JBR on 20 March 2016 Development of the tower development was of- ficially announced during Cityscape Global 2015. The construction started with site mobilising and enabling works by the end of January 2016. Final design has been completed and it is in the final stage of approval with the authorities. Marwan Al Kindi, executive director of sales and sales operations at DP, said: “This ground breaking marks an important phase of this highly anticipated development, reinforcing our commitment to de- livering key projects at one of the emirate’s most sought-after beachfront destinations, JBR.” The registration of clients and customers with the intent of purchasing, was launched in Septem- ber 2015, and the tower is set for completion and handover in early 2019. Dubai Properties begins construction of iconic 1/JBR
construction business news me April 2016 9 Kurdistan-based Qaiwan Group secured two loans worth $105m to refinance part of the firm’s investment in the 442MW Bazian Power Plant. With Deutsche Bank as the mandated lead arranger (MLA) and Dubai-based Bankmed as co-MLA and co-lender, the finance is being backed by the French government’s Export Credit Agency Co- face. GE, too, has arranged a five-year, $30m commercial loan. Dubai-based CT&F Consulting DMCC acted as finan- cial advisor to Qaiwan Group on the en- tire financing. Saad Hasan, CEO of Qaiwan Group, said: “This plant is a marquee infra- structure project that will go a long way in addressing the growing de- mand for power in a rapidly develop- ing Kurdistan.” Qaiwan entered into a 15-year Power Purchase Agreement with the Ministry of Electricity of the Kurdistan Regional Government on 24 November 2013 to fi- nance, build, own, operate and maintain a power plant in Sulaymaniyah. Qaiwan secure $105m loan for power plant in Iraq Saad Hasan, CEO of Qaiwan Group Damac Properties awarded Al Futtaim Engineering’s elevators division an an- nual maintenance contract to maintain Hitachi elevators at its Ocean Heights Tower in Dubai Marina. The company will service, maintain and provide for necessary spare parts for six ultra-high speed elevators in the 310m residential skyscraper. The 83-floor tower is currently the fifth tallest luxury residential building in the world and the fourth tallest residential building in Dubai. The Alinma Jeddah Economic City Fund secured Shari’a compliant financing of up to $959m from Alinma Bank on 10 December 2015. The funding will be used to build and develop infrastructure for phase-one of Jeddah Economic City project and to continue the construction of Jeddah Tower which has now reached its 37th floor, in addition to developing a number of primary real estate projects within the general masterplan. The first phase of the project is expected to take five years. Developer on the project, Jeddah Economic Company, is the 100% owner of the Alinma Jeddah Economic City Fund’s units, which is a closed-end private, Capital Market Authority (CMA) approved, shari’a compliant real-estate investment fund. H.R.H Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, chairperson of Jeddah Economic Company and chairperson of Alinma Jeddah Economic City Fund Board said: “Securing the financing for this proj- ect expresses the financial sector’s trust in the real-estate market in Saudi Arabia in general as well as in the Jeddah Economic City Project and its development plans.” Al-Futtaim Engineering wins maintenance contract for Ocean Heights Tower Phase-1 of JEC secures funds worth $959m CEO of Fischer Group Klaus Fischer will be honoured with the Global DIY Lifetime Award on 8 June 2016 in Stock- holm’s City Hall. The award would be given by Eu- rope’s technical DIY associations and the special global DIY interest group for his contribution to worldwide do-it- yourself segment. Fischer, in the DIY segment for over 40 years, said: “I am pleased to accept this award on behalf of all my employees because it is only by joining hands and minds that we can be successful.” The fourth Global DIY Summit is big- gest event for global retailers and pro- ducers in the DIY and gardening seg- ment, a useful information platform for current and future developments. Klaus Fischer to receive Global DIY Lifetime Award
construction business news me April 2016 10 NEWS Abu Dhabi Urban Planning Council (UPC) signed a Memorandum of Understanding with the Mohammed Bin Rashid Housing Establishment (MRHE) on 14 March 2016 to incorporate MRHE’s projects with Es- tidama Pearl Villa Rating System (PVRS). Initially, the PVRS will be implemented on the Al Warqaa fourth villa project, which will be the first Dubai Government- backed development to utilise Estidama. The project comprises 72 villas with a total gross floor area (GFA) of almost 20,000m2. Construction of the villas will commence in Q4 2016. UPC’s Estidama team will send experts to the MRHE to aid in developing MRHE’s technical knowledge on the PVRS through specialised training courses. H.E. Falah Al Ahbabi, director general at UPC, said: “Since the Estidama Pearl Rating System became mandatory in Abu Dhabi five years ago, we have seen a transformation in the sustainability levels of the villas, buildings and communities that have been developed in the Emirate, which in turn will enhance the lives of all who live and work here.” UPC helps MRHE enhance Estidama ratings Existing villas in MRHE Dubai-based Nshama has awarded Al Dharis SPF the contract for the design, construction and supply of liquefied petroleum gas (LPG) to Town Square’s residential units that are currently being constructed as per schedule. The design includes the construction of two underground tanks of 50,000 litre capacity, over 35km of underground pip- ing, and 24/7staff on duty for operations and maintenance. The contract was signed by Fred Durie, CEO of Nshama, and Khamis Khalifa Al Muheiri, chairperson of Al Dharis SPF. The project work for Town Square will include the supply of cooking gas to over 18,000 apartments and more than 3,000 town houses, and more than 100 buildings including a hotel complex. The total daily requirement is expected to be about 30,000 litres of LPG. Durie said: “Awarding the key contract for the design, con- struction and supply of cooking gas to Al Dharis SPF demon- strates our commitment to ensuring the on-schedule delivery of our various residential projects in Town Square.” Al Dharis SPF to build LPG tanks in Town Square Abu Dhabi-based Aldar Properties received a master developer license from the Abu Dhabi De- partment of Municipal Affairs on 15 March 2016. The license comes under the provisions of the new real estate law which came into effect on 1 January 2016. Talal Al Dhiyebi, chief development officer at Al- dar, said: “We believe it will bring a high degree of predictability and transparency to the market and thereby increase the attractiveness of the market to existing and a new generation of customers.” Aldar is the first developer licensed by the Department of Municipal Affairs under the new regulations. The new real estate law provides enhanced pro- tections for customers of off-plan developments and enshrines the rights of owners and residents in existing communities. Aldar licensed as master developer under new law Talal Al Dhiyebi
OHSAS 18001 certified ISO 9001, 14001 and 130+years of project experience LEED Platinum, LEED Gold and LEED Silver Capability End to End Integrated Solutions Pioneering Engineering Construction since 1881 www.drakescull.com 700+ Projects Delivered For over 130 years, Drake & Scull International PJSC has been shaping skylines and transforming the lifestyle of communities around the world. Drake & Scull is an industry leader, with a proven history of delivering more than 700 projects through its General Contracting, Engineering, Rail, Oil & Gas, Water and Wastewater Treatment and Infrastructure development business streamlines across the region.
construction business news me April 2016 12 NEWS Property consultants Knight Frank released London-based development Chelsea Waterfront to GCC investors in Dubai from 15 to 16 March and in Doha from 30 to 31 March 2016. Victoria Garrett, head of Knight Frank International London Sales in the Middle East, said: “Over the past year we have seen a significant in- crease of London new home sales from the Middle East, whether for investment purposes or for end-use. This exclusive second phase release attracts significant interest in the Mid- dle East following a successful first release in 2015 when investors from the region accounted for more than 50% of sales.” The project, set within nine acres in the heart of Royal Borough of Kens- ington and Chelsea, is the last re- maining significant river fronting site on the north bank of the Thames be- tween Chelsea and London. Edmond Ho, executive director and general manager of Hutchison Property Group said: “We believe the popularity of the development in the Middle East is a reflection on the size of the apartments, exceptional facilities and a stunning location and I anticipate the second release will be equally popular. Nothing of this quality is available anywhere else on the market.” The apartments in the second phase are due for completion at the end of 2016. When complete, the scheme will comprise ten buildings in total includ- ing two stand-out towers. The entire development is due to complete in 2019 providing 706 new homes. The National Emergency Crisis and Disaster Management Authority (NECMA) urged Emirates Telecom- munications Corporation (Etisalat) to dismantle its Abu Dhabi-based head office’s spherical structure on 11 March 2016, according to Emirates News Agency. The instruction was made following the extreme weather conditions that hit the capital in the last week. The strong winds had severely damaged the structure, as a result NECMA will be providing the telecom company with engineering solutions to contain the damage and dismantle the sphere. Representatives of Etisalat, construction companies and consultants held meet- ings overnight to discuss the damage. NCEMA also asked the public to fol- low traffic instructions on the main roads leading to Etisalat’s building while risks are being assessed and before the roads are reopened. NCEMA urges Etisalat building to remove spherical structure GCC investors given exclusive access to Chelsea Waterfront Dubai-based developer Nakheel will provide technical support to Saudi Arabian developer Al Akaria for a range of new mixed-use projects in and around Riyadh. The two companies have signed a Memorandum of Understanding under which Nakheel will provide services including master planning, design, construction management, mall design and management, hospitality projects and leasing. Abdulrahman Almofadhi, chairperson of Al Akaria, said: “Al Akaria is embarking on a large and rapid expansion. We selected Nakheel to enable us to kick-start and speed up these new projects, and have every confidence in its ability to help us deliver.” Among the new projects is a 7,000 hectare integrated master development comprising thousands of units, Al Wasl, located north-west of the Riyadh. An estimated three million new housing units are needed in Saudi Arabia by 2025 to keep up with the country’s rapidly-growing population, which is expected to reach 37 million over the next 10 years. Nakheel helps Saudi firm with projects across Riyadh Dawood Bin Ozair Etisalat's HQ in Abu Dhabi
construction business news me April 2016 13 The Dubai Supreme Council of Energy (DSCE) aims to double its investments at its 39th council meeting held on 13 March 2016. During the meeting, a strategy to or- ganise Dubai’s district-cooling sector was developed. CEO of Dubai Electric- ity and Water Authority Saeed Al Tayer, also present at the meeting, said: “The strategy will aim to improve the perfor- mance of operations, and enhance the amount of investments in this promis- ing market from 20% to 40% by 2030.” The meeting was intended to sup- port Dubai Clean Energy Strategy 2050 by implementing energy Demand Side Management strategy, which features nine programmes that contribute to the city’s sustainable development. These include the rules and regulations for green buildings, the rehabilitation of existing buildings, district cooling, reg- ulations and standards for energy effi- ciency, reuse of wastewater for use in irrigation and technology to raise the efficiency of street lighting, and the Shams Dubai Initiative. IFP Qatar’s annual exhibition, Project Qatar (PQ), will provide traders with insights to further push and maintain the growth within the construction and infrastructure sector. Reports reveal that Qatar’s construction sector seems to be growing de- spite the oil slump. The sector, largely driven by Qatar National Vision 2030 and 2022 FIFA World Cup, will have infrastructure investments anticipat- ed to reach $150bn over the next few years, according to First Qatar Real Estate Development Company. The Qatar Investment Fund has projected the country to witness a super-normal pace for the next five to seven years. Qatar’s investment programme includes more than 700 individual projects worth more than $30bn to be implemented and 10,000 hotel rooms to be built in the upcoming years. The PQ exhibition will include construction products and services such as new building materials, HVAC, MEP, heavy equipment, stone technology, construction tools and technologies, interior design, security and safety sys- tems, contracting, and trading. IFP PQ project manager Rawad Sleem said: “Project Qatar will continue to contribute year after year aided by the strong support of the Qatari gov- ernment, yielding value to the construction industry in Qatar and beyond.” This year’s show will be promoting an educational side with several workshops. PQ will be held at the Doha Exhibition and Convention Center (DECC) from 9 and 12 May 2016 with new operating hours from 2pm to 9pm. DSCE to double investments in district cooling Project Qatar promotes the nation’s infrastructure boom DSCE’s 39th council meeting $20bn – Roads $40bn – Railways $4bn – Stadiums $8bn – Deep-water seaport Qatar Investment Funds’ infrastructure investments Project Qatar in 2015
construction business news me April 2016 14 NEWS WSP | Parsons Brinckerhoff (WSP|PB) urged regional govern- ments developing metro or light rail ring-fence station-side land which would help off-set the upfront cost of rail projects. In its white paper, Smarter Rail – A Whole-life Approach, the company highlights one of the major challenges for local rail as- set owners is transitioning from a delivery-oriented organisation to an asset operator and maintainer. The whole lifecycle of a rail network is often over-looked dur- ing planning and design, even though the operational phase is significantly longer and requires far more investment than the project phase. To help off-set the capital costs of construction and secure long- term revenues to offset operating cost once in service the consul- tants argue that rail owners should look to implement schemes to develop smart transit hubs and developments on adjacent and nearby plots. The whitepaper cites research that shows locations next to metro stations can enjoy increases in land values of over 50% in comparison to locations away from metro stations, and that people who live in a TOD are five times more likely to com- mute by public transport than other residents. Head of rail at WSP | PB Brendan Young said: “As the Middle East looks to grow its rail network, there is an opportunity for rail owners to take the next step and create smart developments. “However to ensure that this vision can be realised some policy and regulation measures will be required, and one that we envis- age being crucial is some form of regulation to freeze and rezone station-side land for this purpose.” WSP | PB calls for smart development among regional rail projects Anantara Hotels, Resorts and Spas announced the open- ing of two luxury resorts in the Sultanate of Oman in mid-2016. The resorts include Anantara Al Jabal Al Akhdar Resort located in the north east of Oman 2,000 metres above sea level on the curving rim of a great canyon and Al Baleed Resort – Salalah by Anantara in the southern prov- ince of Dhofar positioned between a scenic beach and freshwater lagoon. Anantara Al Jabal Al Akhdar will include 82 premier and deluxe rooms will each feature private balconies or ter- races, whilst the 33 one, two or three bedroom villas com- plete with private swimming pools. Al Baleed Resort – Salalah by Anantara, on the other hand, will features 40 premier and deluxe rooms, offering views of the Arabian Sea, lagoon or picturesque gardens as well as 88 one, two and three bedroom villas which will offer private pools. Firas Rashid, area director of sales and marketing – Oman, Anantara Hotels, Resorts and Spas said: “It is an exciting time as we open our first properties in the Sultan- ate of Oman. We are attending ITB in Berlin this month to build upon the extensive interest already shown by our European and International partners from both the leisure and MICE segments. We are looking forward to further strengthening the relationships already established through our hotels and resorts in the Middle East, Asia the Indian Ocean and Africa.” Anantara to open two resorts in Oman this year Dubai Tram Anantara Al Jabal Al Akhdar
construction business news me April 2016 16 Supplier NEWS Integrated railway system provide, Alstom, showcased its complete rail transport solutions from urban to high speed trains, and signalling to services, at Eurasia Rail held from 3 to 5 March 2016 in Istanbul, Turkey. Arban Citak, managing director of Alstom Turkey, said: “Alstom has been a reliable partner for the Turkish railway sector for more than 60 years. With government intending to invest over $44bn in rail transport, we are looking forward to pursue our collaboration and contribute to the develop- ment of its transport network which include high speed and regional trains, metro, and signalling.” Among the solutions, Alstom showcased: Axonis, an inte- grated driverless metro system that can be quickly built and put into service in cities seeking affordable public transit systems; Coradia, highly configurable regional trains that of- fer numerous options with regard to engines (electric, diesel and hybrid); number of cars (one to six) and interior fittings; and the Pendolino high-speed trains that operate on both conventional and high speed lines. French company, Photolight, delivered 350 solar power LED lights to Mohammed Bin Rashid (MBR) City in December 2016, through its local distributor Al Ghandi Electronics. The solar-powered lights were installed in the project’s 9km cycling and jogging track to ensure good visibility at night and minimise energy consumption. The lights are equipped with 74w LEDs (adhering to RTA lux level standards) and have vertically mounted photovoltaic pan- els for dusty climate. These lights also don’t require cleaning maintenance which can be very costly. MBR City is developed by Meydan Sobha, a joint-venture of Meydan Group and Sobha Group. Saeed Humaid Al Tayer, CEO and chairperson of Meydan, said: “These lights have been imported from France, and unlike the bigger, lumpy solar-powered LED lights, these posts have embedded solar panels, making it sleeker and less space consuming”. Photolight installs solar LED lights in MBR City Alstom showcases solutions at Eurasia Rail Ducab, UAE-based cable manufacturer, launched the PowerOverFire campaign for 2016 on 29 February 2016 with the Ducab Truck in partnership with Dubai Civil Defence. This campaign is held in association with the General Directorate of Civil Defence, UAE Ministry of Interior and aimed to target contractors, retailers and the gen- eral public. Electrical power lines and transmission could also be a danger when it does not match the international qual- ity standards of the UAE code within which the Civil Defence operates. Ducab is also held seminars at Middle East Electricity 2016 (MEE 2016), which ran from 1 to 3 March 2016 at Dubai World Trade Centre. Since MEE 2016 truck has been touring the emir- ates and other GCC countries to provide an interactive learning experience on fire safety in key areas such as industrial zones and construction sites. Ducab launches PowerOverFire campaign Dawood Bin Ozair
construction business news me April 2016 17 Himoinsa launched new rental gas-powered generators at this year’s Middle East Electricity held from 1 to 3 March 2016 at Dubai World Trade Centre. The new range by Himoinsa models include the HRGP 25 T5 LPG, HRGP 40 T5 LPG and HRGP 60 T5 LPG. The new version incorporates enough LPG storage for 24- hour continuous operation without refuelling. The integrated LPG tank could also be connected to an external tank to extend their autonomous operation for as long as desired. The integrated tanks are LPG-certified for vehicles, making them a versatile option for the rental sector, where there is a high demand for mobile equipment that is easy to trans- port and can refuel with an LPG pump at a service station. Gas-powered options have also become a profitable feature among rental companies. The HRGP models guarantee low fuel costs and lower maintenance costs than diesel-powered generators. They significantly reduce carbon monoxide and particulate emis- sions, which together with the noise reduction that all Hi- moinsa gensets provide. Terry McGuire, regional general manager, said that there has been an increasing demand for gensets in the oil and gas sectors and one off applications. Gas-powered gensets are more hassle-free, he says. How- ever, he admits that this region probably won’t respond to gas-powered gensets as well as Europe and South America where it is more economical. “We don’t have that benefit with the gas-generator purely because the price of electric is expensive here in the Middle East.” Which is why FAMCO and Himoinsa is focussing on the rental specific application. “It is more for tailored applica- tion, in some place critical or a remote areas. It is more of a bespoke solution right now, exclusively launched for the oil and gas industry.” Also the use of gas instead of diesel solves the problem of fuel theft, which is one of the biggest concerns of the rental sector. Himoinsa launches gas- powered gensets for rent Falling oil prices and will have a “positive impact” on sustainability technology, according to Tat- suya Kumazawa, director and divisional head of the Eco Solutions division at Panasonic Marketing MEA (PMMAF). Speaking at Middle East Electricity, he said: “When crude oil prices began going down people were not paying attention. But now as it is more prevalent, they have started looking at renewable energy alter- natives and smart energies. “Energy and power is undergoing an unprecedent- ed growth with huge investments being pumped into the sector over the coming years thereby offering the industry players a challenging yet competitive busi- ness environment.” PMMAF showcased its energy solutions that feature the latest electrical products at the Middle East Elec- tricity 2016 (MEE 2016). Some of the innovative solutions highlighted at the event included systems for energy creation, indoor air quality, and lighting solutions. Kumazawa said: “Though we are launching a lot of product ranges in the Middle East, we are also go- ing to be making them accessible to the North Africa region as well.” Panasonic worked on Japan’s Fujisawa Sustainable Smart Town and Kumazawa said that the expertise used in providing solar panels in that project could contribute to similar projects in the UAE and other Gulf countries. Oil slump triggers “positive impact” on smart investments
construction business news me April 2016 20 Cover Story Managing Director of Al Ruwad Real Estate, Ismail Al Hammadi, talks perception, progress and preparing for the Emirate’s next chapter. Melanie Mingas writes. The Long Game
construction business news me April 2016 21 W hile nowhere near the events of 2008, it’s been a some- what turbulent start to the year for Dubai’s real estate market. 2016 began with news of new proj- ects ranging from villas to affordable housing projects and analyses of the market that indicated the supply-de- mand equilibrium would begin to bal- ance out by the end of the year. On the back of the activity came news that AED68bn had been spent on Dubai real estate in the first 53 days of the year and predictions surfaced that transactions would reach values of AE- D300bn by 2016 end. Allsopp and Allsopp announced that transactions in the first two months of the year were up 18% on the same period last year, and month-on-month growth over the last 12 months had in- creased by 12%. Then in early March, the emirate was ranked 96 out of 100 global mar- kets due to its property price decline of 5.5% in Knight Frank’s Prime Inter- national Residential Index and statistics released by Dubai Land Department indicated a decline in the number of residential units sold between January 2014 and November 2015. As managing director of Al Ruwad Real Estate – and entrepreneurial force behind a number of other business en- deavours – Ismail Al Hammadi heads a business that specialises in property management, consultancy, buying and selling, brokerage and leasing. If ever one is unsure about the state of the market, he is a trustworthy source of information. “The market today is bigger than people are thinking. There is a percep- tion that prices are always going up and down, but the size of the market and the projects we have today is dif- ferent from what we had in 2013, 2008 and 2005,” he explains. “When it comes to a comparison I cannot compare Dubai’s market today to Dubai’s market yesterday. Reason being, every day you have new prod- ucts coming up, new islands, new villa projects, new buildings, we are talking about almost 700 different projects which are being announced,” he continues. Al Hammadi, who previously served as executive director of TECOM and Dubai Industrial City, isn’t just a Dubai advocate, but one of the many busi- ness people who understands its eco- nomic nuances to enough of an extent as to capitalize upon them. He is also a keen writer. In his op-ed “Dubai Real Estate and Public Relations…The Wasted Oppor- tunities” he talks not about the specula- tors who moved in in the early 2000s, but the lack of PR support for Dubai and how, with the right positioning in the press, much of the negativity in Dubai’s real estate market wouldn’t even exist.
construction business news me April 2016 22 Cover Story In light of how the first quarter of 2016 has played out, one would be hard pressed to argue otherwise; for almost a decade the media, no more so than internationally, has relished the anti-Dubai narrative. Sensationalist headlines – mostly driven by an online journalism industry that is fed by how many times a page is visited, rather than how much value an article can bring to the reader – only perpetuate the situation. “How many developers did we have in 2005, then 2010, now 2015? I can see the market is growing so why talk neg- atively about it? Unless we have a hid- den agenda to say the market is down, in order to sell our product, you can come and buy. “In 2015 alone there were more than 60 projects launched with a value of more than AED130bn It’s not a small amount and this is only one city in the country.” Talking with passion on his master- mind subject, any frustration that could be considered normal in the face of such a constant, is jokingly brushed off as he adds: “People come over to me and say ‘hi how are you? How’s the market?’” Following the leader When Al Ruwad entered the real estate industry in 2013, Hammadi had a sim- ple mission: to create one of the top 10 real estate companies in Dubai, based on the firm’s core values of profession- alism, innovation, responsible business and integrity. Today the business spans multiple op- erations and within three years Hammadi is certain that list will have expanded to include the words “holding company”. As he says: “We will expand into all the supporting activities to increase the Foreign Direct Investments in the UAE by offering complete business solutions under one roof.” Partnering with the emirate’s big name developers has been the driving force behind a large part of that suc- cess and these include Emaar, Damac, Meraas, Dubai Properties and Al Wasl properties, among others. Hammadi is the first to admit – albeit with humility – that he is incredibly well connected. But as with any industry in a busi- ness environment that is built on global transactions, the local value is not the end of the story. Dubai is highly dependent upon for- eign direct investment (FDI) when it comes to making projects financially viable, in addition to banking facilities and infrastructure development – as somebody whose profession depends on relaying the state of those three key “The good time to invest is now. Which locations? I don’t want to mention the places because it will be a promotion for the developers, but we have the best places to invest in Dubai.” – Ismail Al Hammadi
construction business news me April 2016 23 Infrastructure “A metro or transport development can add between 20% to 30% to the value of a plot of land. Expanding the Dubai Metro is essential for both communities and also land owners” The next big thing “There are many plots in Dubai that are ignored by investors such as Al Jaddaf, which is very well connected, International City Phase 3 and Al Ain Road.” The demand for property types “Affordable housing is in high de- mand. If you notice, for the past few years now all the developers are promoting mid-class apartments, af- fordable houses. Starting from even Business Bay to Mohammed Bin Rashid City and Dubai South. All the projects announced include this and it balances against the high invest- ment property types.” Biznet Consulting “This was launched in January 2015 and this year we changed the name from Al Ruwad Project Development Consultancy to Biznet Consulting, to prevent people from confusing it with our real estate business. Biznet is a multi-disciplinary corporate ser- vices firm, assisting entrepreneurs, business owners, and investors to establish their presence in UAE. Biznet aims to provide its clients services of corporate relocation, business licensing and registration, business process and quality con- sultancy and business modeling. We do project development consultancy in terms of evaluating any project and supporting our clients in terms of supervising”. Ismail Al Hammadi on… elements to investors in the city’s prop- erty stock, Hammadi’s authority is sec- ond to none. Dubai aggressively targets FDI from a number of key markets, without de- pending on too small a pool of inter- est in its projects – residential, retail and commercial. “In my business I like to be honest and transparent with my investors to show them all the positive and negative because their opportunity is my oppor- tunity. In real estate the stakes are very high. One mistake and nobody forgets, so you need to cover all the gaps. Rep- utation is of a high importance for me. “In only 40 years, Dubai became one of the most attractive cities in the Middle East because regulation outside of Dubai is much more difficult to operate under.” Over that time, the market has not only continued to recover from its 2008 lows, but has entered a phase of hyper- growth, which while far from the heady days of the mid 2000s, is shaping the emirate of Dubai for a future based on diverse economic pillars. “Dubai is about chapters. A new chapter is now open in Mohammed Bin Rashid City, a new chapter is open in Jumeirah Village Circle and Jumeirah Village Triangle, Sports City is also up- coming and Dubai South is taking part because it is linked with Expo.” And it is with the words Dubai Expo 2020 that Hammadi’s tone changes – far from being the person who looks to the six month event in four years’ time as a way to pave the streets with gold, he is one of the few people who refuses to join the bandwagon. “Expo is one event and I am proud it is here in Dubai but I should not link it with my business – my services will be provided before and after Expo and Dubai’s strategy and the government vision is for 2021 not 2020.” “For example, today we could have a launch for Emaar and the development will be completed in 2021. That shows that even the developers are not look- ing only to 2020,” he continues. The where and when When it comes to business, Hamma- di’s local knowledge means one thing: he knows where to develop, and he knows what to develop on each plot. According to his observations, there are areas of Dubai which are “ignored” by investors. Without surprise these are the submarkets, generally on the outskirts of the city, that are not served by a metro line and don’t boast water-side views. In a horizontally-planned city that has been known to create additional coastline on a whim in order to boost real estate development and values, where the proximity to a metro line can add between 20 and 30% to the value of the plot, these are important points. But there are other things which add value. “You can compare Jaddaf to Barsha, it’s the heart of Dubai, it is linked with Sharjah and New Dubai, it is four min- utes to the airport, seven minutes to Burj Khalifa, you have access to every- where, infrastructure is 100% ready and even the metro stations are there. But it is not being utilised because the area is not on the agenda for development.” Why? “I don’t see any reason. The main reason for Dubai is that the in- vestors who are GCC nationals or for- eigners, are following a scenario, but you need to have someone who is proactive to take risk and build, and then you will find people who follow these investments. “We need to educate people more on these areas and become less reac- tive. At the end of the day I have a regulation for each zone. You can go right now and see that there is a huge investment in Jaddaf and I can see the role that area can play in the great- er Dubai story and once that is clear people will be moving fast into that location,” he continues. Al Ruwad has few hotel plots inven- tory some of which sold over recent months, although plans remain to de- velop a 3-star hotel that will be inde- pendently branded by Al Ruwad itself. Jaddaf joins the likes of International City Phase 3, Al Ain Road – where Al Ruwad has “huge plots” listed in it’s inventory– and the area surrounding Global Village. But it isn’t just infrastructure and a thirst for risk. Referencing the “Down-
construction business news me April 2016 24 town effect” new areas need demand drivers, especially if they are out of sight. Close to Global Village for example, is Al Barari; a luxury villa development described by its founder as an “excep- tional botanic haven, unrivalled in its ecological sensitivity”. It’s an enormous, sprawling oasis, with very little else around but the only part of the development non-residents know is its flagship restaurant, The Farm. “That is the only anchor in that area and it is one restaurant in a huge de- velopment. We are not looking at the value of the project but because we know that one landmark that is what it is known for.” Another key development on this trend is the evolution of the product of- fering. Not only is interest moving away from the “prime” areas, but it is also diversifying. Today affordable hous- ing components are required alongside the luxury developments, because no one single property type sells to every member of Dubai’s ever expanding so- ciety. It is a sign not only of market maturity, but also the changing face of the Dubai resident and buyer. “The good time to invest is now. Where, the location I don’t want to mention the place because it will be a promotion for the developers, but we have a good place in Dubai and this is the right time to invest, regardless of Expo,” Hammadi asserts. The road ahead In light of how 2016 had begun, what could happen over the next 12 months is anybody’s guess. In February 2016, Asteco, real estate consultancy, said residential rents would fall in 2016 and 2017 if “all housing units are delivered on time.” It’s a big if, but a statement continued to predict that: “rental performance in 2016 will be highly dependent on the timely delivery of supply. Assuming the anticipated supply is handed over on time, rental rates are likely to come under pressure over the course of not only 2016, but also 2017 onwards.” In Hammadi’s eyes the road to 2018 could see “any service providers do well”. He predicts hospitality will emerge “as a main player”, both hotels and restau- rants, and the demand for services such as FM, building materials and mainte- nance will reach such a level that the market will need to double to keep up. “Then the price will be in competi- tion and companies from other emir- ates will not be able to come to Dubai.” He concludes: “My target is not 2020 because if a major event is going to start then I need to be in the market by 2019, 2018 is even better, so we have a good number of investments.” Cover Story Location Project Business Bay G+70 hotel G+22 hotel Burj Khalifa G+22 Al Jaddaf 3-star independent hotel development The below projects are under Ismail Al Hammadi’s supervision:
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construction business news me April 2016 26 IN PERSON An inevitable cycle PNC Menon, chair of Sobha Group, discusses the cyclical nature of a real estate business and how to survive and thrive despite the challenges Real estate is a very cyclical business,” PNC Menon, chair- person of Sobha Group observes. Since the oil price drop, the GCC has been going through a slowdown in various sectors, but according to the chairperson this would be true regard- less of the oil slump. He says that ups and downs are common in any busi- ness especially real estate. Dubai, he observes, goes through a four-year cycle which includes two years of positive and two years of negative. “Considering the negative hit us in 2014, we should be ending the nega- tive cycle by more or less the end of this year.” He admits that when is difficult to really map out, but he explains that the cycle is somewhat inevitable and existent in every market. “This kind of cyclical periods in real estate is all over the world, not just in Dubai. I was recently reading about the US, and quite strangely the US has been going through positives for the last eight years. This is quite unusual.” He says cycles are very difficult to figure out. It is very dynamic and has become even more so since the finan- cial crash in 2008, which he says is when the whole world changed. He asserts that the global phenom- enon affected Dubai in many ways. But when it comes to the oil slump, he says that looking at the fundamen- tals I don’t think it could affect Dubai as much. “Dubai is not really an oil and gas economy. The UAE, too, as a whole does not only depend on oil.” When it comes to the future of oil prices, Menon predicts that the oil price would probably stay between $40 to $60 per barrel. He urges that it is impossible to truly predict the future. “There could be a technological breakthrough that could change the economy and the minds of people.” He believes with good management and the advance human resources available in the GCC, the region would be able to engineer an alternative and reduce its dependency on oil. He admits that GDP is extremely
construction business news me April 2016 27 critical, but he argues that the ele- ment of oil in the GDP is absolutely negligible. “It is not an oil economy. What Dubai has created in terms of in- frastructure has become a magnet for people from the surrounding regions to come on a holiday, to come shop, and even to come live. “I am a strong believer of Dubai, not just today but also back during the fi- nancial crisis, I used to say ‘this city cannot be stopped.’” Menon admits that the financial cri- sis in a way opened the minds of busi- nessmen around the world. Personally he learnt a lot about le- veraging. He says that there was this unspoken belief in the market that le- veraging has to always be limited. “In the real estate and construction indus- try, I think it is best to have a debt equity ratio of about 40:60 rather than the other way around.” He explains that the industry is cycli- cal in nature anyway, so a good com- pany would be wise to target 40% debt and 60% equity. “This, in my opinion, would really help during the pressures of the negative cycle and would pro- tect your business. “The year 2008 financial crisis was a beautiful lesson on sustainability of a business. You can be successful one year and not the other.” What is more important is to sus- tain, he says. “If you want to target a sustainable business in the real es- tate domain, financial discipline of a good debt equity ratio would really pull yourself out of the negative cycles Sobha Hartland apartment building smoothly and help you sustain your business.” Venturing into affordable projects The group made a move into the af- fordable sector last year. Menon says that the reason Sobha, a primarily luxury brand, is considering this is because of the different kinds of buy- ers in the market. Some buyers are interested in luxury while others in af- fordable. “There are different kinds of budgets: high-end, mid-end and low- end, in every market even the GCC. We need to cater to all kinds of de- mand.” He explains: “Luxury and affordable projects are not the same, specifica- tions for the low-end would be lesser
construction business news me April 2016 28 IN PERSON than the high-end. But the quality will be very good either way because that is our philosophy.” In delivering any project, Menon says that Sobha’s strongest point is that is a totally backward integrated company. “What I mean by that, is that we have got our own contracting com- pany, our own design studio, we do our own engineering, we pretty much do everything under one umbrella. This makes it easier for us, and it gives us a lot of control in terms of time and quality.” These two aspects, time and quality, are critical in development, says the chairperson. The multinational group has various developments and investments in the UAE, Oman, Qatar, Bahrain, Brunei and India. Menon has especially been focussed on Dubai. He says: “If you look at this city, it is really a magnet for the three billion people living in and around it which includes surrounding regions such as the whole of Africa, Middle East and the Indian subcontinent. All put together, there are three billion people easily live in this region, which is roughly about more than 40% of the world population. I don’t think any other country has created a city like this till today in this geography, nor do I see the possibility of that happening in the next ten years.” He praises the Prime Minister of UAE H.H. Sheikh Mohammed bin Rashid Al Maktoum for the development of such an incomparable city. The Dubai-based entrepreneur has multiple businesses overseas but makes sure he travels not more than 120 days in a year, leaving the rest two-third of his time in the UAE. Sobha has been running projects worth $12bn in Dubai and plan to add another $12bn during the course of this year. Looking at other markets in the re- gion, Menon says Iran has been an in- teresting new addition to the region’s property market. After sanctions were lifted earlier this year, many groups have been showing avid interest in en- dorsing the country. Menon says that Sobha too has definitely been looking Sobha Hartland villa District One by Meydan Sobha into Iran, though since the country has just stepped out now he thinks it’s bet- ter to wait and watch before making a move. He reveals that the group has made a decision to not look at any new des- tinations, other than the UK, till the beginning of 2018. He says: “The rea- son behind this is because I think it is time to consolidate the business. I am 67 years old, it’s time.” Back to Indian roots Sobha Group has also made huge progress Menon’s home country, In- dia, where his son is currently the chairperson of the company. Menon says that India too has a cy- clical nature. “It doesn’t matter if you are in India, New York, or Dubai, it is the same case everywhere. This is what I call the unfortunate part of the business.” He emphasises that businessman need to start accepting it rather than trying to combat it. By preparation to deal with negative cycles businesses could do better. In terms of India, Menon says that it’s economy is doing pretty well keeping in mind the large amount of population it has to tackle. “I think the Indian economy is going to do ex- ceedingly well especially for the next three years to come. The projection is that India is going to be one of the strongest economies of the world even more than China. They say that the US, China and India will be the strongest
construction business news me April 2016 29 economies in the next 25 to 30 years.” UAE is one the biggest trading part- ners with India. Menon says that the relationship between the two nations is only going to get better because of the growing interest to work together. “The historical relationship with the two countries also plays a strong role. All of it together is going to add a lot of benefit to both the countries. I think over a period of time there is going to be a lot more investments with India Villa in District One by Meydan Sobha becoming an opportune investment destination. This will be hugely ben- eficial for both the countries.” Man behind the scene Back in 1974, he moved to Oman with roughly $7 in his pocket and a powerful drive to prove himself. Menon says: “When you have no money, you can’t imagine the strug- gle. The first two to three years was really a testing period. Unless you have the resilience to go through it, it is not easy.” In 1976, Menon established an inte- rior decoration firm under the name of Services and Trade Company in Muscat. His fit-out business then slowly propelled from basic fit-outs for offices to competing (and win- ning) against European firms to do the fit-out of palaces and mosques. “I was always different from others, in the business it was the quality of our work that stood out.” While talking about succeeding in life, Menon believes that you are ei- ther born with it or not. “It is in your DNA, and you either need the op- portunity to prove it or create your own opportunity.” Running a business on the other hand needs skills, he says. “Each en- trepreneur needs the right business skills to take it further, and also a philosophy. That could be different for each individual because people believe in different things, methods, and schools. My belief is that qual- ity is the most important requirement and main strength.” At the age of 67 and retirement not at all on his mind, Menon says that today he still has dreams to pursue more. He aims to start up another business with a professional team and achieve a target of $2bn and also concentrate more on his phi- lanthropy. The businessman says he has committed half of his wealth to society and has big dreams primar- ily in building education institutes in the near future. He emphasises that as long as he has the health and breath of life, he will continue to work, create and thrive.
construction business news me April 2016 30 ANALYSIS Experts from the regional construction industry including program director at Atkins Kathleen Gale, transport planning manager at Abu Dhabi Urban Planning Council Khulood Al Marzouqi, and partner at Tabanlıoğlu Architects Melkan Tabanlıoğlu voice their concerns for the future of women AEC professionals Women in construction construction in the GCC is clearly dominated by male AEC professionals. Why do you believe this is? Tabanlıoğlu: Construction is gener- ally regarded as a strenuous, harsh and masculine industry as there is a stereo- type that this sector requires physical strength for manual labour due to the use of heavy machinery and specialised equipment. There is a gender typecast that women are too delicate to work under such brash environments. They fail to realise there are other areas with- in this field that women can work in, and this is possibly why it appeals to men more than women in the GCC. Gale: I think it starts at a very early on when you’re choosing a career. The per- ception of construction is more appeal- ing to young men than to young women even while pursuing higher education. A lot of the degree course used to be very technical, but now other aspects of planning, infrastructure, environ- ment and sustainability come into play. By looking into the social aspects, I think women will be encouraged to get into this field. Marzouqi: If you’re talking about construction on site then yes it is dominated by male. I think most en- gineers, especially those who work on site, are men because of the cultural sensitivities in this region. For women it is difficult to be onsite as they need to interact with male workers and con- tractors and that could be culturally challenging. I don’t think women can- not do construction, but I do think in these times most of them prefer not to be part some aspects of construction. You will find more women in the more creative side of construction such as in architecture, design, and urban plan- ning. It is a matter of preference, and most women choose to go into the creative side of it. I think it might be because that is the way most women are, they are more interested in cre- ativity than men. Is there a gender bias in the in regional construction sector? Tabanlıoğlu: Gender bias in any industry is an unfortunate reality in the Middle East, especially in the construction sector. Construction is categorised as a male domain, and very rarely if ever do we find women in this field in the region. Very few women have made their mark as an important figure in this field, and they are mainly from the West. It would be refreshing to have more women from the Middle East come forth as leaders in the industry. Marzouqi: On site, men are pre- ferred because they don’t have the cultural sensitivity of being around other men. Most women also cannot stay for longer hours which could be
construction business news me April 2016 31 a barrier as some sites need supervi- sion both day and night. So when it comes to on site related work, com- panies usually lean towards hiring male engineers instead of female. In planning, design, architecture, and real estate, however, there are opportunities are for both as the work expectation is the same for both genders. What stops women from taking on a role in construction? Tabanlıoğlu: Personally, I don’t be- lieve in gender differences in any pro- fession or platform, and believe we all have a duty of educating this very thought in our peers for generations to come. In fact, we need to improve the working conditions of women all over the world so that they may take on more senior roles. A building, a land- scape or simply a room designed by a woman is no different. Gale: I think family commitments can stop women from reaching out more career-wise. Generally and internation- ally it is the same case, women are primary carers in their families. They are expected to be accessible 24/7 and manage all of it. The stress of it all does not encourage progression but it tends to discourage women to move up to the next step. Is the lack of women in con- struction a regional issue, or does it also exist in an international level? Tabanlıoğlu: Although to a much less- er degree, but the issue does exist on an international level. Women deemed as feeble and inferior is a global stereo- type, however the West has progressed from this traditional misconception whereas women in the region are still fighting it. Being a woman in a man’s world grants you advantages as well as disadvantages, I have always been on the lucky side. Gale: It is absolutely an international issue, we have similar problems across borders. Though I do believe the US and China have better statistics than the rest of the world. Do you think there is a need for change or are things starting to get better? Gale: I am saddened in a way because when I started 20 years ago, I did a pre- sentation on women in engineering and had high hopes for the numbers to be equal by the time I reach where I am now. Sadly, that is not the case yet. But I am very excited about the change in the engineering and construction indus- try. The industry is becoming more in- novative and dynamic, and I think as it transforms it will naturally attract more women professionals to join the field. Tabanlıoğlu: I think things are defi- nitely starting to brighten for women in the field. It is a slow, but steady im- “For women it is difficult to be onsite as they need to interact with male workers and contractors and that could be culturally challenging” – Khulood Al Marzouqi
construction business news me April 2016 32 ANALYSIS Could seeing more women in leadership roles inspire young women to take up an AEC as a profession? Tabanlıoğlu: Being a woman in a male- dominated industry has its challenges, one being that most executives or senior roles are reserved for men. It is still dif- ficult for women to excel and reach top executive levels as an architect or engi- neer. As a woman, it is demotivating to know when entering any field that you will not be given what you rightly de- serve based solely on your gender. This could be possibly why women stray away from construction knowing they skills and worth will not be recognised. That being said, I do think pioneer- ing models always inspire and encour- age. Women need to build solidarity by working hard to compete and earn lead- erships roles so that young women may feel inspired and encouraged to take on AEC professions. Gale: Atkins has established a Women’s Business Network and one of our pri- mary goals with that network is to en- sure that our female colleagues have role models. When you work through your career you tend to begin with learning how to do your job, but eventually it be- comes learning how to do your job and balance your personal life like having a family and children. What a young wom- an needs is role models to look up to and who could help on that journey. If these role models don’t exist, it is very hard to sort of see yourself in that sort of future. “Women who have achieved and excelled in the industry should lead by example” – Melkan Tabanlıoğlu “The lack of women in this industry could put some women off, especially those who have grown up in a female-only environment” – Kathleen Gale provement from the scenario several years ago. I don’t believe that the cli- ents prefer men as architects; on the contrary, women are better facilitators and better negotiators. Technically, men and women have the same educa- tional background, yet I trust the insti- tutional command of women is a better tool in design. There are plenty of women taking up AEC courses in university, but don’t follow through to practicing it. Why do you think that happens? Tabanlıoğlu: There can be several rea- sons that amount to this, lack of support from the family, personal issues, lack of funding, demotivation or just feeling in- capable to take on the challenge. Similar to the rest of the modern world, almost 25% of architects in Turkey are women, but in Tabanlioglu the percentage of women architects rises to almost 60%; it could well be due to the fact that one of the partners is a woman. At Tabanlioglu, we support and encourage women in the industry and our gender ratio within the organisation surely proves this. do you find the lack of women in the industry discouraging for other women? Tabanlıoğlu: This could be true, but I like to see the positive in everything or at the very least, find a solution rather than to dwell on the problem. Women who have achieved and excelled in the industry should lead by example and encourage and assist the young genera- tion women architects by creating the path for them. Gale: The lack of women in this in- dustry could put some women off, es- pecially those who have grown up in a female-only environment. The thought of walking into an industry that is pri- marily male dominated could be quite daunting. Also these young women sometimes tend to have no real role models. When I was young, I was a civil engineer sitting on a floor that was sur- rounded by hundreds and hundred of men, it is certainly very uncomfortable.
construction business news me April 2016 34 ANALYSIS CEO of Dubai Carbon Centre of Excellence Ivano Iannelli, chairperson of Emirates Green Building Council Saeed Al Abbar, and country president – GCC and Pakistan at Schneider Electric Benoit Dubarle discuss how the energy efficiency movement has transformed the construction industry in the Middle East The energy fix How have decisions made at COP21 affected the Middle East energy mix? Dubarle: COP21 created a global mo- mentum and awareness towards sus- tainability and stressed the urgency for renewable energy investments and research. As Middle East oil reserves dwindle and governments look to di- versify their economies, they must also seek technologies which help various industries grow in a sustainable man- ner. The COP21 has highlighted the need for a long-term policy frame- work, collaborations between the public and private sector, and the im- portance of developing technical skill- sets in the region. Iannelli: Action is already being taken in the Middle East and Dubai has prov- en itself to be a true trailblazer with in- novative strategies such as the Dubai Clean Energy Strategy 2050. Dubai acts as an innovation hub whose experi- ments are going to be replicated across the region. To ensure this, Dubai Car- bon is already working in Oman and Bahrain, with plans to move into Ku- wait and Iraq, to scale renewable strat- egies and projects. Does the growing renewables sector in the UAE have a di- rect impact on the construc- tion and building sector? Al Abbar: The increase in market de- mand of renewable energy has been driven by the rise of conventional elec- tricity costs, restructuring of energy tar- iffs, technology advancement, environ- mental concern and strong government incentives to encourage investment in grid-connected applications. There is growing support from the authorities towards building a ‘greener’ UAE. Local government bodies have mandated a minimum level for com- pliance of buildings and constructions. For instance, buildings in Dubai must comply with Dubai Green Building Regulations and Specifications while buildings in Abu Dhabi must achieve a minimum requirement under Estidama Pearl Rating System. The Dubai Electricity and Water Authority (DEWA) is taking a lead in the solar field with initiatives such as Shams Dubai, as part of its Distribut- ed Renewable Resources Generation programme. The programme encour- ages household and building owners to install photovoltaic (PV) panels to generate electricity, and connect them to DEWA’s grid. The electricity is then used on site and the surplus is export- ed to DEWA’s network. Abu Dhabi is also looking forward to increasing the renewable energy share by 7% by 2020. Buildings in Abu Dhabi, for example, achieve points under Es- tidama when considering or installing renewable energy systems. This is just the beginning of many more initiatives to come, encouraging green building and new frameworks to support sustainable development. Dubarle: Construction processes and buildings consume massive amounts of energy each year, and are also respon- sible for emitting greenhouse gas emis- sions; this energy includes heating and cooling systems, lighting and applianc- es, manufacturing and transportation of building materials. There are various ways in which we can shift towards ‘zero-energy’ buildings, which are con-
construction business news me April 2016 35 structed using low-impact renewables and smart solutions which manage and allocate energy wisely. Renewable solutions such as rooftop solar panels, smart windows that block out UV rays, and ultra-energy-efficient HVAC systems can revolutionise the construction industry and building structures, making them more sustain- able. As governments impose stringent regulations on green building practices, low-carbon renewables will gain more popularity in the construction sector. Iannelli: The UAE has been actively diversifying its economy and energy sector. The shift to renewables is un- doubtedly affecting the economy in numerous positive aspects. Renewables also translate to good business sense as they help save billions of dollars. They enable countries to depend on their own energy production rather than having to import it. Looking at coun- tries that have embraced renewables has proven to us that adoption of this technology translates into economic benefits in the long run. Could you draw a compari- son between the West and the Middle East when it comes to energy efficient buildings and use of renew- ables? Iannelli: There cannot be a compari- son between the Middle East and the rest of the world because the contexts are vastly different and one would need to take into account a range of environmental, socio-economical and political factors. What can be advanced as a certainty is that there is a growing demand in the Middle East, and PV is now economically viable for meeting it, with prices in the Gulf region forming a new benchmark and grid-parity repre- senting a very important milestone for further PV diffusion. There is a proven cost effective na- ture to renewables in the Middle East and, while the market may be local, there are global opportunities for fi- nancing and supplying renewable en- ergy projects. The renewables policy landscape in the Middle East, although sometimes still at an exploratory phase, is rapidly developing and will soon provide a strong backbone for a large number of PV projects. This policy shift reflects the region's commitment to meet its ambitious national targets re- garding PV. Al Abbar: In terms of energy efficiency or energy performance of buildings, you could say that European Union countries pioneered in developing their building codes and standards. For example, many European countries, such as Austria, Denmark, UK, France or Germany, set their own definitions of energy efficient buildings. These definitions include low energy build- ings, zero energy buildings and passive buildings. We can see that the Middle East and the UAE in particular, are mak-
construction business news me April 2016 36 ANALYSIS Specialised degrees and training in renewable energy and sustainability are available and are becoming more popular. For instance, EmiratesGBC provides Leadership in Energy and En- vironmental Design (LEED), Certified Energy Auditor (CEA) and Certified En- ergy Manager (CEM) training. We can anticipate that many jobs will be created through Shams Dubai initia- tive. For that, DEWA provides solar-PV training for employees working with consultants or contractors companies. Iannelli: In my opinion, the techno- logical know-how is abundant in the region. This know-how needs to be matched to the local entrepreneurial acumen as to ensure economically vi- “The energy demand is expected to increase three times in the next fifteen years and will not be met by today’s supply” – Benoit Dubarle “In an effort to compliment the government’s drive to excellence, Dubai Carbon is now working to streamline the green economy multiplier of the GDP” – Ivano Iannelli ing important strides towards a more structured framework with regards to green building. Does the Middle East have sufficient energy invest- ments, or is there a need for more funds? Dubarle: According to the Interna- tional Renewable Energy Author- ity (IRENA), global energy efficiency investment are expected to reach $385bn per year, or $5.8tr by 2030. PwC report, Financing the Future of Energy, states that tens of billions of US dollars per year are required in the Gulf’s investment for power gen- eration, transmission and energy use. The energy demand is expected to in- crease three times in the next fifteen years and will not be met by today’s supply. To close this gap, the GCC will require massive investments in projects which can increase genera- tion capacity and energy efficiency. The report also states that currently, there is limited finance for renewable energy projects. This presents a mas- sive opportunity for the private sector to shape policies and projects in clean energy moving forward, and collabo- rate closely with governments taking the lead towards this movement. Al Abbar: It is very positive to see the governments investing in renewables and it is important that we encourage everyone to continue to do so. These investments can only be pos- itive for the industry. The renewable energy targets set by GCC countries (Abu Dhabi 7% by 2020, Dubai 15% by 2030, Bahrain 5% by 2020, Kuwait 15% by 2030, Oman 10% by 2020) and the commitment towards them is creating trust in the real estate sector and therefore attracts more financing. Iannelli: I think if what we have seen in the past six months is not enough of a commitment to the transition, then I don’t know what would be! In an effort to compliment the gov- ernment’s drive to excellence, Dubai Carbon is now working to stream- line the green economy multiplier of the GDP. Is there a lack of local ex- pertise and technical know- how while building renew- able projects in the Middle East? How could that be improved? Al Abbar: Worldwide, renewable en- ergy employment in 2014 grew 18% compared with 2013, according to IRENA. Throughout the years, we have witnessed an increase in the number of qualified professionals but, as the in- dustry grows, we will need even more professionals with a thorough under- standing of green buildings, so we are placing a strong focus on education.
construction business news me April 2016 37 ability of the projects. Furthermore, the larger deployment of renewables re- quires structural reform of regional en- ergy market and pricing mechanisms. Could you comment on the energy efficiency movement happening across the Middle East? Apart from UAE, which other countries are doing well in this aspect? Dubarle: As the Middle East looks to diversify away from oil commodities and address the high energy demands in an efficient way, we will see in- vestments in energy efficient projects across the MEA region, particularly in the GCC. Other than the UAE, several countries are taking steps towards energy efficien- cy, including Saudi Arabia. King Abdul- lah City for Atomic and Renewable En- ergy (KACARE) plans to develop 54GW of renewable energy by 2040. Other renewable projects, such as the KAUST solar power plant and initiatives by Sau- di Aramco are also underway. Recently, the Saudi Electricity Company (SEC) signed a $1.2bn contract with General Electric to establish the Kingdom’s first fossil fuel and solar power plant near the Red Sea port of Dhuba. Al Abbar: Sustainability is a reason- ably new topic in the region, but the green construction industry has grown significantly in the Middle East in re- cent years. Buildings in Arab countries consume about quarter of the energy consumed domestically. Internation- ally, buildings account for some 41% of global energy savings potential by 2035, compared with the industrial sec- tor, which is only at 24% and the trans- port sector, with 21%, according to the International Energy Agency. With this data, it is evident that in or- der to reduce the carbon dioxide emis- sions, we need to reduce the energy demand and adopt energy efficiency measures, such as improvement of ef- ficiency of building envelope compo- nents, such as external walls, floors, roofs, ceilings, windows and doors, passive low energy design, and im- proving the efficiency of appliances and equipment used inside buildings. Authorities throughout the Middle East are increasingly implementing regulations and rating systems that are setting high standards for new con- struction projects. The industry have developed their own energy efficiency strategies as part of their climate change mitigation plans. These countries know that energy efficiency the least expen- sive and most effective form of energy available today. As such, targeted en- ergy efficiency measures are regional policymakers’ best solutions. “In terms of energy efficiency or energy performance of buildings, you could say that European Union countries pioneered in developing their building codes and standards” – Saeed Al Abbar
construction business news me April 2016 38 Analysis Regional rail experts discuss the region’s biggest cross-country project, GCC Rail, and share some of the challenges the sector faces with budgetary concerns. Lorraine Bangera reports Full steam ahead? T he Middle East has an ag- gressive plan for the future,” says Michael Stangl, senior director of Global Services at Autodesk Consulting. “That gets me excited!” The US-based senior director par- ticipated at this year’s Middle East Rail and praised the region for its zeal and vigour. “There is no other region in the world that moves so quickly, with its impressive 2020 or 2030 visions and drive to move beyond oil economies.” He observes this region’s rail industry to be doing exceedingly well as com- pared to most of the West, given that the rail sector here is relatively new. Most industry reports point out that GCC has had a strong passenger and freight transport network on the agen- da. Currently the region has 16 major railway projects worth $352bn that are currently underway in the region. With oil prices down the region has been focussing on not oil-related proj- ects, and thus transport and logistics sectors are playing an increasingly im- portant role in its economies. That being said, there has been a lot of talk about projects being postponed due to budgetary concerns and specula- tions have been made if rail is the way to go. Tim Armsby, partner at Eversheds, says that delaying projects were the key discussion at Middle East Rail. Andy Glyde, industry sales director of Project Delivery at Bentley Systems MEA, agrees that projects were the key focus at the summit. Discussing proj- ects that have started, planned and postponed, the event highlighted new projects that are ongoing and how to approach the project delivery team and the clients together. He admits that the sector has been affected by the oil slump, but wasn’t sure of the extent of this as yet. “Expenditure in all the sectors, in- cluding rail, has been put under the mi- croscope which has definitely affected the status of some of the projects.” Armsby clarifies that projects such as Doha Metro and Riyadh Metro that have already been underway would not be stopped now. However, he says that there would be a need to look at some more value engineering options behind the scenes to select more optional ma- terials given the current circumstances. The fate of the regional network Local daily Gulf News reported that GCC Assistant General for Economic Affairs Abdullah Bin Juma Al Shibli told delegates at the conference that the GCC Rail project will go ahead. “Some members have already completed their phases. The GCC has pledged ongoing support to this project through partner- ships with the private sector.” That be- ing said, he did not comment on the final completion date of the project. At the Cargo Show, co-located with Middle East Rail, director of Dubai Customs Ahmed Mahboob Musabih discussed the future transport projects in the region, according to Emirates News Agency. He said: “The GCC rail network, which will link all six Gulf countries, is one of the major projects undertaken to develop forms of trans- port between GCC members. Once completed, the network will support the establishment of a GCC corridor for freight forwarding, supported by more
construction business news me April 2016 39 developed procedures, trade services and Customs facilitations to streamline trade flow between Gulf states.” “Challenges are numerous, but so are opportunities,” said Musabih, “Govern- ment and private entities in the MENA region must forge solid business partner- ships to capitalise on these opportunities.” In February, GCC transport minister Abdulla al-Nuaimi urged the need for a “more realistic” plan for the GCC Rail. Due to weak global oil prices, GCC transport ministers will hold a meeting in Riyadh, Saudi Arabia to examine the project and if it could possibly be com- pleted by 2018. Industry report in International Rail- way Journal stated that the 2018 com- pletion date has been looking “unreal- istic” due to the difficulty in getting the six countries to coordinate their plans for the project. Dubai Metro Glyde explains: “The projects post- ponement might be unfortunate from our perspective, however it will be done for obvious reasons of the oil slump. In times like these, everyone is looking at what is absolutely necessary.” “I don’t think it would have been possible to be completed by 2018,” says Armsby. “Though the structure is not a complicated construction proj- ect but there are significant amount of technical requirements for it. For example, one topic that came up dur- ing the discussion at the conference was the impact of sand. In the Saudi network sand was covering the tracks in a matter of hours, which not only prevents the train from running on the tracks but could also increase wear and tear of the engines.” The key driver in establishing the GCC Rail network is the transport of freight and to shift the focus from roads to rail. Armsby says that greater connectivity is also a major positive as it increases connectivity and trade amongst regional countries. In terms of carrying the project for- ward, he looks at each country par- ticipating in building the network as a separate business case. “It is safe to say that some countries would benefit more than others from a fully connect- ed network.” From the GCC, he points out that Oman and Saudi Arabia have the best business cases as it would comple- ment its existing logistics industry. One of the key disadvantages, he ob- serves is that certain states don’t have a strong business case for the project to move forward with full steam ahead. He says: “It is inevitable that with budgetary concerns all GCC states will be looking into which project would be more nec- essary and lucrative.” “Projects like the GCC Rail are high- ly capital intensive, though an invest- ment for a greater good, it won’t be paid off immediately. We are looking at a number of years till it will be able to breakeven on operational expen- diture. So, perhaps it is sensible that since work isn’t yet underway we postpone the development until oil prices improve.” The 10th edition of Middle East Rail was held from 9 to10 March 2016 at the Dubai International Convention and Exhibition Centre (DICEC). Fea- turing keynotes, panel discussions and research sharing, the event discussed ongoing rail projects with key government departments, railway operators and construction companies. It also gave a first look at 2016 tenders and an understanding of the techniques and technologies being implemented to build these futuristic networks. ME Rail
construction business news me April 2016 40 TAKE 10 Construction Business News ME profiles 10 of the most innovative suppliers in the Middle East construction industry Innovators’ focus As leaders in the LED technology revolution, Philips cre- ates lighting systems that prioritises energy efficiency, sus- tainability, and operational cost reduction. The company focuses on improving the liva-bility and effectiveness of indoor and outdoor environments, providing everything from functional general illumination to spectacular colour- changing experiences that enhance your brand, encour- age social interactions, and revitalise communities. The expertise and range of systems available at Philips helps transform into effective lighting applica-tions. As a global leader in lighting and sponsor of the International Year of Light (IYOL) in 2015, a UNESCO- led initiative, at Philips we are committed to driving the connected lighting agenda, taking lighting beyond illumination. From indoor to outdoor spaces, to personal and business use, connected lighting translates into intel- ligent systems that offer personalization and increased efficiency, effectiveness and productivity across multiple landscapes and verticals. By enabling the collection of valuable data, connected lighting allows facility managers to adjust lighting levels based on usage whether managing an office building, or an entire city. Lighting for example on a certain street or an office floor that is little used can be dimmed at any time of day or night. This can result in significant energy savings, reducing both cost and environmental impact, a primary driver in the implementation of connected light- ing systems. Or alternatively, lighting can be increased on a street should there be a safety concern, working to enhance the experience of its users. Philips Lighting1
construction business news me April 2016 41 The BASF Construction Chemicals division has been present in the GCC for more than 35 years, with head- quarters in Dubai and other offices in Qatar, Kuwait, Oman, KSA as well as representatives in Bah-rain. Its products are found in most iconic projects, with BASF’s involvement providing technical support and rec- ommendations right from the design phase to a project’s completion. BASF’s admixtures played a crucial role dur- ing the construction of the Burj Khalifa with concrete be- ing pumped to world record heights of 600 metres. BASF has also made significant contributions to the construc- tion of various other major projects in the region includ- ing providing waterproofing solutions for Dubai’s Airport Terminal 2 project and the use of BASF anchoring grouts to secure and reinforce the world’s largest roller-coaster, Formula Ross at Abu Dhabi’s Ferrari World. BASF’s Construction Chemicals division offers ad- vanced chemicals solutions for new construction, main- tenance, repair and renovation of structures. Its com- prehensive portfolio encompasses concrete admixtures, cement additives, chemical solutions for underground construction, waterproofing sys-tems, sealants, concrete repair and protection systems, performance grouts, per- formance flooring sys-tems, tile fixing systems, expansion control systems and wood protection solutions. To solve customers’ specific construction challenges from conception through to completion of a pro-ject, BASF combines its know-how across areas of exper- tise and regions and draw on the experience gained in BASF 2 countless construction projects worldwide. It leverages global BASF technologies, as well as its in-depth knowl- edge of local building needs, to develop innovations that help make customers more successful and drive sustain- able construction. With continued research and develop- ment into new technologies, products and chemical solu- tions, its lays the foundations for its customers’ long-term success. These products, technologies and solutions, under the Master Builders Solutions brand, maximise work produc- tivity, durability and longevity and therefore sustainability in construction projects throughout the world. Leverag- ing the technologies and know-how available in BASF’s global research and development network, its innovations address the current and emerging market needs. One of its most innovative solutions is Green Sense Concrete, a mix optimisation programme in which sup- plementary cementitious materials and non-cementitious powders are used in combination with specially formu- lated BASF admixtures. This results in an environmentally- friendly, cost-effective con-crete that meets, and often exceeds, performance targets. MasterEase, a superplas- ticiser for low-viscosity concrete, is an ideal admixture for the Green Sense Concrete mix since it improves its rheo-logical properties, significantly facilitating its pump- ing, placing and finishing. Another product from the BASF comprehensive admixtures portfolio is the MasterLife range, which enhances the durability of the concrete extensively.
construction business news me April 2016 42 TAKE 10 Doka 3M, a science-based company, produces thousands of imaginative products in scores of markets - from health care and highway safety to office products and abrasives and adhesives. 3M is known for many of the world’s most popular products, including the Post-it Note, Scotch-Brite products, and Scotch Magic Tape, to name only a few. The diversified technology company has more than 65,000 products that are sold worldwide. In fact, 3M innovates across a wide range of industries as diverse as healthcare, automotive, biotechnology, nanotechnology, aviation, oil and gas, in- dustrial, construction, and communications. 3M captures the spark of new ideas and transforms them into thousands of inge- nious solutions. Incor-porating a culture of creative collaboration which inspires a never-ending stream of powerful technol- ogies that make life better. GEZE is a global developer and manufacturer of construc- tion systems for door, window and safety technology. The company offers a comprehensive range of products including automatic door systems and door technology, glass systems, smoke and heat extraction systems, safety technology as well as window and ventilation technology. As one of the market, innovation and design leaders, the independently-managed family company has decisive- ly influenced facility engineering and building technology with pioneering developments. These developments are constantly being driven onwards in the company's tech- nology centre. GEZE products tries to contribute towards some of the most innovative building concepts in the world and ensure convenience and security in building technology. Individual and building-specific special constructions are also offered by the company, for example, revolving doors or all glass systems are implemented by a sub- sidiary. Product solutions from GEZE can be found in renowned buildings across the entire world. Often dubbed as the “formwork experts”, the Doka Group was established in 1958 in Austria where it supplied formwork and engineering solutions to numer- ous infrastructure projects. In 1961, the company expanded its operations to Germany and further to Brazil and Kuwait in 1977. With more than 160 sales and logistics facilities in over 70 coun- tries, the Doka Group has a highly efficient distribution network which ensures that equipment and technical support are provided swiftly and professionally. Supplying a range of products, systems and design services, including form- work panels, slab formwork, wall formwork, one-sided wall formwork, climb- ing formwork, tunnel formwork, dam formwork, bridge formwork, shoring or false work, tie systems and filed support, software and training, Doka's business includes production, equipment sale and rental, engineering and maintenance. One of its innovations, Concremote, entered the regional market in early 2014. The range enables greater quality control and cost efficiency by providing real- time information about the concrete via a concrete maturity sensor system, help- ing to reduce cycle times and commissioning quantities by accurately informing about the optimal time to remove formwork. Doka is currently engaged on a number of ongoing projects in the Middle East including the Saudi Arabia’s Kingdom Tower, Dubai’s Marina 106, and Abu Dhabi's Midfield project. 3M GEZE 3 4 5
construction business news me April 2016 43 RAK Ceramics Ideal Standard, provider of total bathroom solutions, operates across Europe, Middle East and Africa. The company offers a spectrum of bathroom solutions – from ceramics, brass- ware fittings and shower kits to bathtubs, furniture and shower trays. Ideal Standard’s highlight since The Big 5 Show 2015 has been the revolutionary Aqua- BladeTM flush technology and Tonic II total bathroom range. AquaBladeTM is a newly engineered system of channels to create a cas- cading wall of water from the top of the toilet bowl opening, which gives optimum water flow covering every inch of the ceramic, keep- ing the toilet bowl immaculately clean. With a refined soft geometric design, Tonic II’s clean, beautiful lines offer a broad choice of solutions and combinations of harmonious, contemporary ceramics, fittings, furniture and bathtubs that won this year’s IF Design award. The collection is created by German design studio, ARTEFAKT. Autodesk, Inc., is a in 3D design, engineering and en- tertainment software provider that has been popular in global markets since its introduction of AutoCAD software in 1982. Today, Autodesk continues to develop the broad- est portfolio of 3D software for global markets. Customers across the manufacturing, architecture, building, construction, and media and entertainment industries use Autodesk software to design, visualise, and simulate their ideas before they're ever built or created. Through its apps for iPhone, iPad, iPod, and Android, Autodesk also making design technology accessible to professional designers and amateur designers, homeown- ers, students, and casual creators — anyone who wants to create and share their ideas with the world. RAK Ceramics, manufacturer of ceramics lifestyle solutions, specialises in high-quality ceramic and gres porcellanato wall and floor tiles, sanitary ware, tableware and faucets. One of the largest ceramics manufacturers in the world, RAK Ceramics has a global annual pro- duction capacity of 117 million square metres of ceramic and porcelain tiles, 4.6 million pieces of sanitaryware and 24 million pieces of tableware; with a $1bn turnover and a distribution network that spans 160 countries. Specialising in high-quality ceramic wall and floor tiles, gres porcellanato, and sanitary ware, RAK Ce-ramics uses more than 10,000 production models (tiles) and 13,000 design pieces (sanitary ware), with new designs being added every week to its portfolio. Tiles are manufactured in a variety of sizes, from 10 cm x 10 cm up to 150 cm x 300 cm, as well as bespoke sizes – the widest range of- fered in the ceramics field. Ideal Standard Autodesk 6 7 8
construction business news me April 2016 44 TAKE 10 Emirates Glass was set up by Dubai Invest- ments PJSC to create a vertically-integrated Flat Glass Industry in the UAE. It was estab- lished in 1998 in the Al Quoz Industrial area of Dubai in response to the rapid growth of the local construction industry. The company is known for the production of processed architec- tural flat glass in the Middle East. Emirates Glass manufactures MSVD sputter- coated high performance glass under the EmiCool range of solar control, multi-functional Low-E and Standard Low-E glass designed to minimise solar heat gain into air-conditioned buildings in the Gulf environment. Since 2003 up to the present time, Dubai Mu- nicipality included code of practice for the use of energy-saving glass in buildings. Base on the parameters for solar shading and thermal insulated shown in the following summary of Dubai Munici- pality, Emirates Glass’s Emicool range of sputtered high performance and multi-functional Low-E Glass meets and beats the minimum requirements of this code for control of heatgain in air-conditioned buildings. Mapei Construction Chemicals LLC is Mapei’s UAE subsidiary created in line with Mapei’s globalisation strategy to be closer to the market. Mapei products are manu- factured to the most stringent health, safety and environmental requirements as well as complying with the latest material standards such as GSO: ISO 13007-1 and GEV. Product are then tested in one of the regions most advanced temperature and humidity controlled QA/QC laboratory. Mapei also offers a unique stone testing service where natural or artificial stone can be tested and classified for stability and absorption, enabling the most suitable and durable installation materials such as screed and adhe- sives to be specified. It also has a commercial and technical training centre conveniently located in Dubai in order to ensure the highest levels of service and support for our customers. The staff of Mapei are available to provide any re- quired support such as specification advice, correct ma- terial selection (based on substrate and type of finishes selected), green or LEED product compliance, as well as on-site assistance including preparation, mixing and installation of the selected Mapei material. Emirates Glass Mapei 9 10
construction business news me April 2016 46 Real Estate John Stevens, managing director at Asteco, analyses the UAE property market and if this the opportune time to invest All the right moves A nyone with an eye on the real estate market in the UAE over the last few years cannot fail to have noted the pace of development, and I don't just mean from a physical development per- spective but from the point of view of regulatory changes and the impact of economic influencers. It’s certainly been an interesting peri- od as we have seen the market continue to mature, adjust and react to domestic as well as external global factors. Looking back, property sales values and transactions have declined over the past 18 months since the govern- ment introduced the necessary cooling measures to reverse sales prices from overheating following the announce- ment of Dubai’s successful bid to host Expo 2020 as well as due to general concern regarding the uncertain eco- nomic outlook exacerbated by contin- ued low oil prices. With substantial supply due to be handed over in Dubai throughout 2016, both sales prices and rental rates in the city are expected to come under in- creasing pressure in the coming months. This will invariably be affected by the addition of 22,000 apartments and 7,700 villas, due to be handed over this year, but, nevertheless, the real estate sector in Dubai continues to offer attractive post tax returns to investors looking more long-term, especially when com- pared with other global cities. The trend for falling prices in Dubai began in 2015 and year-on-year figures showed a decline in apartment sales prices of 8% and villas by 11%. This is expected to continue during the course of 2016, albeit at a more moderate pace as rates in several developments have already declined sufficiently to encour- age the conclusion of transactions. Last year’s price softening has been welcomed by prospective investors ea- ger to get a foot in the door or add to existing portfolios, and it has also al- lowed the market to catch its breath and regain investor confidence in its long- term prospects and the value offering when compared to other global prop- erty hotspots. Dubai’s rental yields are currently av- eraging just over 7%, which is extremely attractive when compared with cities such as Hong Kong, which offers just 2-3%, and London at 3-4%. In some parts of Dubai, the yield can be as high as 10% for prestigious de- velopments on Palm Jumeirah, for ex- ample, with hotel managed apartment units at Dukes Dubai and Anantara de- velopments representing sound invest- ment potential. While we have seen a cooling of sales prices, the rental market has remained broadly robust, thus contributing to a climate of solid yields for rental prop- erties in select areas. The reality is that residents still need somewhere to live, and when coupled with the forecasted increase in the local population as we edge closer to 2020, renting remains the first choice for the majority of newly ar- rived residents. The knock-on effect of prolonged de- creases in Dubai could potentially see rental rates in the Northern Emirates decrease further, following an average of 2% year-on-year decline for Sharjah, while Ajman flat-lined over the same pe- Real estate in Sharjah, UAE
construction business news me April 2016 47 riod, due to historical interdependence on Dubai’s real estate market movement. With as many as 1,000 units expected to be added to the market in Sharjah in 2016, downward rental pressure is ex- pected to continue, particularly impact- ing poorer quality developments. Residential sales for the whole of the Northern Emirates are expected to be subdued, with only quality projects at truly affordable prices may be able to generate the desired sales despite the introduction of new Sharjah Ownership Laws in 2015, which have benefited the emirate’s residential sales market, driv- ing increased levels of investor interest. In contrast, Abu Dhabi has a more limited pipeline due for completion during 2016. As a result, vacancy rates are likely to remain low despite a po- tential reduction in demand, implying stability and potential growth for both Real estate in Dubai Marina, UAE sales prices and rental rates. The emirate will add 3,000 apartments and 850 villas to its residential supply this year, and the 2015 buyer preference trend for high quality turnkey proper- ties, which saw off-plan sales slow sig- nificantly, is expected to continue. In the rental market, 2015 saw slow but overall positive market performance with apartment rental rates increasing, on average, by 5%, with prime projects achieving up to 10% growth, and 3-4% growth for apartment sales prices. How- ever, Asteco expects a noticeable slow- down in the next 12 months, due to a restricted pipeline and further impacted by a reduction in government spending and stable salary levels. It is also worth noting that the expa- triate population in Abu Dhabi, which represents approximately 75% of the to- tal population, remains one of the main drivers for residential property. There- fore, any plans for job cuts may impact overall demand significantly. There are several motivated and se- rious sellers in the market place, espe- cially in the case of vacant land and bulk inventory, which presents an opportune time to buy. Knowing when to purchase a prop- erty will become the major factor but all signs point to 2016 being a good time to invest in the UAE’s property market. With the experience of providing stra- tegic property advice to owners and occupiers, John Stevens has been a pioneer in the establishment and con- tinued development of professional management services. He is respected within the industry for developing this service.
construction business news me April 2016 48 COMMENT to quantify the total residential supply both currently and in the future. This is further cut down to include only under construction and completed projects. Other project statuses includes, under design, planning, cancelled, partially completed, proposed and on-hold. When the quarterly updates are com- pared, the total supply is determined, and by total supply, we mean the whole of Dubai - freehold as well as non-freehold projects. When we analyse the data, we find that some projects are completed before their due date, most projects are completed on time or a few months later. However, we do find that many projects witness delays for various reasons. ValuStrat’s latest quarterly report, Dubai Real Estate Market Review Q4 2015, stated that 17,328 residential units were supplied during 2015, short of almost 15,000 units that were supposed to be delivered during the same year. The delayed units have been carried over to 2016 and 2017, pushing the estimated supply for 2016 to over 35,000 residential units. It’s worth noting that this volume may be subject to signifi- cant downward adjustment as the year advances. However, we do expect the percentage of delayed projects to gener- ally decrease as we approach 2020. Dubai continues to grow not just in terms of urban development but also in terms of adopting the latest technolo- gies, enhancing government services, improving statistical research and pro- moting data transparency. This progress will invariable help us more in accurate- ly estimating residential supply numbers going forward. Lifting the lid on supply numbers Haider Tuaima, research manager at ValuStrat, highlights the challenges and processes involves in quantifying Dubai’s real estate supply status, and completion dates are looked at with scrutiny, and when in doubt, data providers are asked to verify the project information by speaking to the contractors or developers and perform- ing site visits if deemed necessary. The next stage involves segregat- ing the supply database by land use, so pure residential projects, as well as mixed-use residential projects and hotel apartment projects are included O fficial supply figures are reported annually by the Dubai Statistics Center, stating the number of completed residential buildings and total number of individual units. At ValuStrat research we use of- ficial figures to report on past supply, however to estimate current and future supply we have to broaden our analysis to additional sources. Several real estate consultants publish market reviews on a periodic basis, often displaying large discrepancies with each other on Dubai’s supply numbers – this variance can cause understand- able uncertainty amongst planners, developers and investors. Reasons for these discrepancies can be explained by differences in research methodology, definitions and terminologies. ValuStrat has developed its own supply database, sourcing information from available project data providers. We then work to fill the many gaps we find, such as missing projects, wrong locations, incorrect status and crucially, completion times. Consolidating multiple data sources is a challenge, merging dissimilar data into one compatible database and filtering out duplicates, identifying master proj- ects and their sub-projects. Updating the supply database on a quarterly basis is also a challenge, as it involves identify- ing the new projects as well as updating the status and completion due dates for existing projects. After ensuring a comprehensive cleansed supply database, our analysis commences. Project’s land use, location, “17,328 residential units were supplied during 2015, short of almost 15,000 units that were supposed to be delivered during the same year. The delayed units have been carried over to 2016 and 2017, pushing the estimated supply for 2016 to over 35,000 residential units” Haider Tuaima
construction business news me April 2016 50 Project review Etihad Energy Services Company (ESCO), the energy retrofit entity has executed the lighting retrofit project at the Dubai Electricity and Water Author- ity (DEWA) power stations in Jebel Ali and Al Awir. The Jebel Ali Power Station is estimated to cover an area of almost four square kilometres, and the facility was initially built in 1976. The project involved replacing 8,500 light fixtures with high efficiency LEDs and it has ex- ceeded the contractual savings guaran- tee to 75% savings from initial electricity consumption, which is equivalent to a 15GWh reduction annually. Stephane le Gentil, CEO of Etihad ESCO, says: “This lighting retrofit project of the DEWA is the first project that Eti- had ESCO launched when the company Light it up Light it up started its operations. The project was executed in January 2015 and was com- pleted in November 2015. We are now at the stage where the energy savings are happening.” The project deployed an average of 30 workers on-site for the installation works with five engineers and techni- cal experts working behind the scenes to ensure timely project delivery with customer satisfaction. Stephane Le Gentil, CEO of Etihad Energy Services Company, speaks with Construction Business News ME about achieving 75% measured and verified electricity savings at Dubai Electricity and Water Authority power stations that retrofitted 8,500 lighting fixtures with high efficiency LEDs “Lighting today accounts for 19% of the world’s total electricity consumption, whereas this number is 22% in our region. Importance of energy efficient LED lighting solutions is getting more crucial every day for a more sustainable standard of living.” DEWA Power Station
construction business news me April 2016 51 The energy savings have been achieved from high efficiency LED lights by Philips Lighting that replaced old in- door, outdoor and streets lights in Jebel Ali and Al Awir Power Stations. The new electricity consumption from the installed LED lights was measured and verified and confirmed a savings of 75% compared to previous consumption. Through this ESCO project, DEWA will witness 6,286 tonnes of CO2 reduction. Gentil explains that there are many advantages for a building owner surrounding retrofitting an existing project. “The critical one being to save electricity and water, therefore reduce the utility bill. The second major advantage is improving the comfort of the occupants thanks to better equipment installed. In the case of the DEWA Power Plants, the DEWA employees benefits from much better lights both outside and in the offices.” Using commercial electricity rates, the project generates an annual savings of AED6.6m with no main- tenance costs on DEWA on lighting for the contractual six years. DEWA’s initial investment of AED21m will be recompensed through the guaranteed savings in less than 3.5 years. Through previously undertaken audits, Etihad ESCO identified that the lighting infrastructure at DEWA Power Stations were aging and a significant improvement could be implemented to reduce energy consumption. Discussing the electricity usage, Construction worker retrofitting lights at DEWA Power Station Project Data 68% saving from current electricity consumption 14 GWh reduction per year AED6m to be saved annually for DEWA An investment by DEWA of AED21m paid back through the savings in 3.5 years 6,286 tonnes of CO2 avoided 6 year contract with guaranteed electricity savings and light levels
construction business news me April 2016 52 Project review Alfonso D’andretta, head of systems centre Dubai at Philips Lighting says: “Lighting today accounts for 19% of the world’s total electricity consump- tion, whereas this number is 22% in our region. Importance of energy efficient LED lighting solutions is getting more crucial every day for a more sustainable standard of living.” “The better quality light fixtures will benefit the DEWA employees working on site at night and result in better safety and comfort conditions, but the biggest impact will be a large reduction in the energy consumption while reducing the maintenance budget for lighting to zero” adds Stephane le Gentil. Though the retrofit project completed on time and rather effortlessly. Gentil points out that there were some chal- lenges faced on the way. “Since we were working in a facility that is con- sidered ‘critical infrastructure’, ensuring compliance and acclimatisation of the all involved in the process to the strict security and procedural requirements was a major challenge. In addition, since the team was working near live equipment, access to areas was limited and, so, it was imperative that we plan around the obstacles to complete the project on-time.” Other projects Etihad ESCO is the official super ESCO in Dubai and the first in the region, created to spearhead the development of a viable ESCO market through management of energy-efficient projects. Etihad ESCO aims to inspire cross sector actions and partnerships among multiple stakeholders to create and sustain a vibrant market for energy performance contracts. Gentil says: “We have three projects currently in execution including one for DEWA and two for Jebel Ali Free Zone (JAFZA). We have two more proj- ects that are in award phase, one for JAFZA and one for Dubai International Financial Centre. Finally, we have one project in RFP evaluation phase for Mohammed Bin Rashid Housing Estab- lishment. We expect all these projects to move smoothly and produce large energy savings. We have many more projects in preparation that will con- tribute to help Dubai reach its energy efficiency targets.” Project in short End User Dubai Electricity and Water Authority Project Site DEWA Power Station, Jebel Ali and Al Awir Project Scope Upgrade of 8,500 indoor, outdoor and street light fixtures with LEDs from Philips lighting, to reduce energy consumption and increase visibility, and enhance sustainability Products and Suppliers used A total of 8,500 LEDs from Al Ghandi Electronics limited and Philips lighting Company Cost savings with new system The upgrade will result in DEWA’s energy consumption saving – 75% Other benefits • Improved comfort conditions for DEWA employees • Significant Energy Savings • Better visual image of the site due to high performing lighting systems, which elevates visibility and ambiance DEWA Power Station
construction business news me April 2016 54 Q&A What is the current construction status of the project? How much of the project is complete? To date, the project completion rate is at 88.5%, with the exclusion of the Al-Ghazali intersection. Phase-two has seen the most amount of progress, with two major openings to the pub- lic, and a completion level at 99%. Major structural works have been completed on the Jahra mainline. For example, as of 30 January 2016, the last segment had been installed on the Jahra mainline. What are some of the key features about this project? This project has many unique characteristics, including the precast yard facilities in Doha area as well as the launching gantries used for segment erection. Precasting method: Special precast, post-tensioned segmental bridge constructions are used for the elevated structures. These segments are manufactured in a precast yard constructed spe- cifically for the Jahra Road project. Located in the Doha area in Kuwait, the precast yard covers a total surface of 150,000 square metres. The facility accommodates large-scale precast- ing techniques and equipment such as different type of molds, gantry cranes, steel factory, storage area, batching plant, curing chambers and offices dedicated to the production of precast segments. Employing this sys- tem of precast segments has helped enhance the speed of production and has ensured better quality. and tendons stressed, a closure joint is made at mid-span called a stitch. Afterwards, continuity post-tensioning tendons are installed and stressed in- between the piers for span continuity. Launching gantry: The erection process of bridge seg- ments involves using the launch- ing gantries, which were designed specifically for the project and weigh 500 tonnes each, and are 140 metres in length. The launching gantry is capable of lifting bridge segments that weighs up to 120 tonnes. Three launching gantries were designed for this project. Hit the road Precast segmental balanced cantilever method of bridge construction: Precast segmental balanced cantilever construction involves a symmetrical erection of segments around a sup- porting pier. Bridge segments are lifted into position and their match- cast faces are aligned and coated with epoxy before bonding the segments together. Temporary pre-stressing is applied on each segment until its balancing segment is installed. Fi- nally, cantilever tendons are installed and stressed from one segment to its counter-part on the other side of the pier. When all segments of a new cantilever have been erected Yasser Boudastour, project engineer at the Jahra Road Development Project, speaks to Construction Business News ME about the delivering an largescale infrastructure project that will soon be an integral part of Ministry of Public Work’s (MPW) long- term strategic plan The levels of Jahra Road structure Construction of Jahra Road
construction business news me April 2016 55 Phases of the project Phase 1 Jahra Roundabout (Sheraton Roundabout) to Airport Road 70% complete Phase 2 United Nations Roundabout to Hospital Road (Al Sabah Medical District) 99% complete Phase 3 Hospital Road to Al Ghazali Road 95% complete Phase 4 East of Ghazali bridge and ends after the crossing with Airport road 83% complete Phase 5 Al-Ghazali intersection, linking to the Jamal Abdul Nasser Road project 34% complete What are some of the challenges faced during the construction of this project? And how have they been overcome? Like all major projects, Jahra Road has had its fair share of challenges, including: • Very restricted space, which hinders the ability to move with as much ease and speed as possible • Using the launching gantry allowed segments to be installed without disrupting or stopping the traffic at ground level. If cranes were used, it would have resulted in many clo- sures and detours of the roads • Many stakeholders involved, includ- ing other government agencies. All need to be coordinated with to ensure minimal inconvenience and disruption is caused. A number of approvals, licenses and documenta- tion are needed when dealing with a project of this magnitude, and coordination with these many enti- ties, government and private, has a big effect on overall time • Dealing with existing traffic during construction • Harsh weather conditions • Procurement of long-lead items • Material supply and quality con- trol; we have rejected material that does not pass our quality standards and testing • Utilities relocation, coordination of detours, and the highly sensitive location of the project Regardless of these hurdles, the project has continued to successfully coordinate with its different stake- holders, and progress as one of the country’s key infrastructural projects in MPW’s long-term strategic vision. Could you talk more about con- structing large elevated stretches of road? What was the reason behind this design and was it more chal- lenging to build than regular roads? A traffic impact analysis was con- ducted in the area to project traffic levels for the next 25-30 years. It was concluded that the current roads would not sustain the projected levels. However, due to the lack of expansion capacity at-grade, an alter- native was sought. An observation and feasibility study showed that there was just enough space in the centre of the two roads (each direction) where an elevated structure could be built; essentially, enough space to accom- modate central piers. Single large piers, with large diaphragms accom- modating six lanes of traffic (three in each direction), would be built. Employing this design was more functional, as it would also allow for six at-grade service roads to be built, bringing the total number of lanes to 12 (six in each direction). Economi- cally, building one pier (rather than two, one to support each direction carriageway) brings down the cost as less material is used. Also, aestheti- cally, it’s a better option. Launching gantry Naturally, it is more challenging to build elevated structures, but in this case it was impossible to build at-grade roads as the government would have had to buy out and relocate multiple private, public and corporate entities. The contract was awarded in 2010 was a five-year contract. Were there any particular challenges faced that causes the delay? The project has faced, and overcome, many challenges that have resulted in delays in some areas of works, caus- ing a knock-on effect to the whole project. Completion will be towards the end of 2016, but this does not include phase-five, which is the Al- Ghazali intersection. Works on phase- five were halted, and a new schedule was put in place. The individual
construction business news me April 2016 56 schedule set for Al-Ghazali bridge is due to its position as the sole access route to the busy Shuwaikh port. Due to the heavy congestion on this road, it requires coordination with the other two road projects connect- ing with it (Jamal Nasser Road and Jaber Causeway). Once the other four phases of Jahra Road is completed, it will allow for alternate routes and for work to commence on the demolition and upgrade of Al-Ghazali. Once opened, how will this road impact the infrastructure of Kuwait? Jahra Road has traditionally been one of the core transport routes running through the heart of Kuwait, servicing numerous residential and key indus- trial areas, including educational, medical, commercial, and governmen- tal sectors. The road is also heavily used by trucks carrying cargo across borders. With the continued develop- ment of these areas, traffic numbers have grown to proportions unservice- able by the current infrastructure, ini- tiating a development programme set forth by the MPW aimed at transform- ing this simple three-lane road into a grand unified highway, with 12 lanes in each direction, creating a two-level motorway that separates local service traffic below from through traffic above. The objectives of the project include the reduction of traffic in the affected surrounding areas, as well as playing an important role in MPW’s strategic goal of tackling the growing congestion issue in Kuwait. The trans- formation will convert the existing Jahra Road into an expressway that includes an 80-120 kph multi-levelled highway, designed in accordance to international standards; as well as upgrading the existing service roads to provide additional traffic lanes with enhanced utilities infrastructure. Due to the nature of its location, and the busy high-demand areas it services, the impact will be evident. The elevated structure will allow for people to bypass many of these areas and allow for free flow of traffic. Furthermore, the project is also up- grading the existing at-grade service roads, which will allow for easier ac- cess to the private, public, residential and commercial entities on this route. Has Kuwait’s construction sector been affected by the drop in oil prices? Do you think the slowdown in GCC construction markets will affect ongoing or upcoming infra- structure projects in Kuwait? Jahra Road Development Project budget and allocation of funds was approved prior to the drop in oil prices, and this project has not been affected. Despite the drop, The MPW has a number of on-going projects, new projects set to start shortly, and many more in the pipeline as part of their long term strategic develop- ment plans. Q&A Precast yard Opened ramps and mainline • 4,579 piles which is approx. 100km in length if lined up side by side • 499 piers • 255 diaphragms • 8,400 precast segments • 20 abutment piers • 444,000 m2 of anti-carbonation coating • 381,345 m2 Asphalt (elevated) • 558,300 m2 Asphalt (at-grade) • Concrete used for viaduct and trough only: 743,181,170 m3 • Steel bars used for viaduct and trough only: 176,592,550 tonnes Approximate totals of project components include:
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construction business news me April 2016 60 Supplier corner Could you tell us more about Philips’ Connected Lighting initiative? As a global leader in lighting and spon- sor of the International Year of Light (IYOL) in 2015, a UNESCO-led initiative, at Philips we are committed to driving the connected lighting agenda, taking lighting beyond illumination. From in- door to outdoor spaces, to personal and business use, connected lighting trans- lates into intelligent systems that offer personalisation and increased efficiency, effectiveness and productivity across multiple landscapes and verticals. By enabling the collection of valu- able data, connected lighting allows fa- cility managers to adjust lighting levels based on usage whether managing an office building, or an entire city. Light- ing for example on a certain street or an office floor can be dimmed at any time of day or night. This can result in significant energy savings, reducing both cost and environmental impact, a primary driver in the implementation of connected lighting systems. Or alter- natively, lighting can be increased on a street should there be a safety concern, working to enhance the experience of its users. Connected lighting can also have an of the growing pressures they face in ensuring the health and well-being of its residents, with many of them already leading the drive. With 75% of all cur- rent urban lighting inefficient, there are considerable gains to make by making the switch to LED. At Philips we predict a saving of 8% of global energy use through widespread adoption of LED. How does shifting to LED lights help a developer in terms of energy cost? LED offers several advantages over incandescent light bulbs including high energy efficiency, long life, and excel- lent quality of light, design flexibility, controllability and colour. With a life- span of up to 40,000 hours and energy savings of up to 90% over traditional light bulbs, the advantages over the use of incandescent light bulbs both short term and long term are astronomic – they are simply too huge to ignore. How long would it take for LED lights to be used across projects in the region? Energy efficiency is high on the govern- ment agenda across the GCC region, as witnessed by the recent phasing out of incandescent light bulbs in the UAE, a additional impact on the bottom line of businesses. By delivering light to specific areas of your retail store for example, a responsive and flexible system can encourage consumers to spend more time in low-footfall areas. Furthermore transforming light points into sources of information can enhance and person- alise customer experience, with push notifications sending special offers based on individual shopper history. There are a number of energy issues around the world, but how much of an impact can efficient products have on solving these? With more than half of the world’s population currently living in cities and urban areas, and this number predicted to rise to close to 70% in 2050, sustain- able development is a pressing concern on the global agenda. Globally the use of lighting accounts for 19% of all energy use. The associated increase in demand on energy resources that come with growing populations and urbanisa- tion however threaten to affect access to electricity, and thereby the proper functioning of cities. Shifting over to energy efficient resources is therefore a necessity for governments today in light Rami Hajjar A leading light Rami Hajjar, general manager of Philips Lighting Middle East, discusses how lighting could play a huge role in energy saving
construction business news me April 2016 61 Philips Lighting’s work on Meydan Bridge, Dubai step Qatar is likely to take in the near future. LED usage has been widely adopted in response and Philips has specifically helped the Dubai govern- ment to retrofit its own buildings thanks to a MoU signed back in 2013 with Dubai Municipality. How strong is the consumer demand for LED lighting and efficient prod- ucts? Are there any regulations in the Middle East that support the use of LED lighting? In the Middle East, where electricity consumption accounts for 22% of all electricity use, above the global aver- age, the compulsory implementation of energy efficient LED light bulbs in Dubai is helping to lower energy consumption. Authorities there have led the evolution to LED, banning the sale of incandes- cent light bulbs in stores from 1 January 2015. Philips, an Energy Service Com- pany (ESCO), an accreditation devel- oped by the Regulatory and Supervisory Bureau (RSB) in Dubai and awarded to those companies with sufficient energy auditing capabilities, has partnered with Dubai government across several proj- ects to help it make the switch. The cer- tification has allowed Philips to support Dubai to achieve the goal of becoming an internationally recognised energy effi- cient city and achieve its target of a 30% reduction in energy use by 2030, in line with Dubai’s Integrated Energy Strategy. Philips has also worked closely with Sharjah Electricity and Water Authority, working with the government there to upgrade its street lighting to LED, and is leading other similar initiatives across the wider region. Could you talk about one of your recent major projects? Philips Lighting worked with Etihad ESCO to refurbish Dubai Water and Electricity Authority (DEWA) Jebel Ali and Al Awir Power Plants with LED lighting solutions. Looking for a partner with proven technology that could meet international standards in retrofitting Dubai’s two power plants, which provides the city of Dubai with all its electricity needs, Philips suc- cessfully met the criteria in a partner DEWA was searching for and began working on the project, tasked with achieving guaranteed energy savings of 68% - equivalent to 6,000 tonnes of CO2 emissions savings. The project, spanning a total of five years is split into two phases. First execution and installation, which was completed in 2015, and second mainte- nance, which is ongoing and consists of maintaining lighting levels, quality and fixtures. Philips also worked to improve the visual comfort of occupants while working towards the energy savings mentioned above. Could you tell us more about your work with Dubai municipality? Dubai Municipality is working to imple- ment LED lighting in 262 of the govern- ment’s buildings as it works towards its goal of becoming the most sustainable city in the world. In 2013 a partnership between Dubai Municipality and Philips was initiated, with Philips tasked to sup- port the Municipality in the retrofitting its buildings from conventional to LED lighting. This was in order to meet the key objective of reducing the electricity bill on lighting by 50%, reducing main- tenance costs and, most importantly, improving the quality of lighting for the employees of the municipality. Phase-one of the project saw 15 of Dubai Municipality’s buildings having their lighting upgraded to new LED technology. A few of these buildings had very old lighting in place, mak- ing the retrofit particularly challenging. The end solution following accurate assessment was a hassle-free, risk-free solution delivering the most innovative CoreLine and GreenSpace LED lumi- naries to not only deliver high-quality optimum lighting but also delivery on the energy savings. Across the 15 retrofitted buildings, a total of 57% of energy savings has been achieved, along with positive feedback from the employees of the Dubai Mu- nicipality on the improved quality of the lighting, which was said to have created a more ambient and vibrant space. The project saw Dubai Municipality and Philips receive the accolade of Lighting Project of the Year at the Middle East Lighting Awards in March 2015.
construction business news me April 2016 62 Lighting Tech Qatar 9 to 10 May 2016 City Centre Rotana Doha, Qatar The third annual LightingTech Qatar 2016 features a high level advisory board with representatives from Ashghal Public Works Authority, Amey and Parsons Brinckerhoff. Collec- tively, the advisory board with their combined expertise have helped develop topics covering the latest government regula- tions, industry standards and certifications, the impending needs and requirements in the lighting industry in Qatar and how they can be addressed. Project Qatar 9 to 12 May 2016 Doha Exhibition and Convention Centre, Qatar Project Qatar provides a platform to view the latest equip- ment and services from the construction industry, develop international relationships and generate new business op- portunities. Exhibitors and visitors will gain fast access into Qatar’s lucrative construction market, and the opportunity to generate new business opportunities with companies of all sizes. In 2015, over 2,000 companies and brands from 40 countries exhibited at the show, and organisers expect more participating companies in 2016. Smart Skyscraper Summit 16 to 17 May 2016 Sofitel Dubai The Palm Resort and Spa, UAE With over 300 senior architects, engineers, policy-makers, de- velopers, contractors and building managers attending from across the GCC, Smart Skyscraper Summit offers a platform for networking and knowledge sharing required for develop- ing world-class skyscrapers in the Middle East. It will also showcase innovative building technologies, design principles and solutions from around the world and offers high-level networking opportunities. Future BIM Implementation Qatar 11 to 12 May 2016 InterContinental Hotel The City, Qatar The Future BIM Implementation Qatar is the essential platform in 2016 for all those involved in the architecture, design, con- Mark your calendar SAVE THE DATE struction, engineering, consulting, building and infrastructure industry in Qatar and the GCC to stay up-to-date on how this software and technology is facilitating future cities in the region. FM Expo Date: 23 to 25 May 2016 Venue: Dubai World Trade Centre, UAE The FM Expo is co-located with Middle East Waste and Re- cycling and Commercial Cleaning and Hygiene and Elevators and Access Control. The Expo will unite FM professionals from across the region with suppliers and experts from inte- grated FM providers, waste management, elevator products and solutions, maintenance and environmental services, to IT solutions and health and safety products. Bridge and Road Engineering and Maintenance 2 to 25 May 2016 Eastern Mangrove Hotel and Spa, UAE The event will gather senior government representatives from UAE, including the Department of Transport, Al Ain Munici- pality as well as local developers, contractors and consultants. The strategic conference will be a great platform for local agencies to demonstrate their achievements in infrastructure delivery and management in the UAE. Roads and Highways Egypt 24 to 25 May 2016 Cairo, Egypt Join key stakeholders from the Egyptian Ministry of Transport, Egyptian Holding Company for Roads, Bridges and Land Transport, Egyptian Ministry of Housing, Egyptian Ministry of Finance, AMG Al Amar Consulting Group S. A., and more at the conference. The event will discuss solutions for the phase-two of the National Roads Programme, the National In- telligent Transport Systems Programme as well as the CATIC refurbishment projects. Construction Business News ME picks the latest and most sought-after exhibitions, conferences and seminars coming up in the construction industry For more news about construction events and more, visit www.cbnme.com Doha Exhibition and Convention Centre, Qatar
construction business news me April 2016 64 Building materials Ukraine-based steel pipe producer, Interpipe, has officially registered its trademark with the Ministry of Econ- omy in the UAE. This marks the first step in the fight against the emergence of a counter- feit steel pipe industry in the UAE. With over 10 years of experience in supplying steel in the UAE, the com- pany’s products are widely used in construction and infrastructure proj- ects and can be found in approximate- ly every third building in the UAE. The region accounts for more than 16% of the company’s global sales. “The depth of the counterfeit steel industry in the UAE remains unquan- tified, however its existence presents a significant challenge, not only to Alucopanel Middle East Euroclass A2 Non-Combustible Grade ACM/MCM, avoids spreading of fire to exterior wall claddings of high- rise buildings. The company is a subsidiary of the Danube Group and a joint venture between Danube Group and Aluco- panel USA. Rizwan Sajan, founder and chairper- son at Danube Group believes that hu- man life must be valued and protected. “As a part of the real estate commu- nity I appeal to the fellow members to come together in making sure that only the best safety solutions are developed and deployed without any compro- mise. We need to take control now by planning how we will go about curbing the mishaps or accidents, especially fire related,” he said. Currently, the region’s construction community-consultants and owners are looking for solutions, suggestions and codes to curb fatal fire accidents. The government of UAE examined the fire and life safety code in March which Alucopanel urges a ban on combustible ACP Interpipe initiates the fight against fake pipes in the GCC Interpipe steel pipes included detailed information on the don’ts and dos of fire safety. One of the major reasons behind these active measures is the increasing number of fires that have occurred in skyscrapers across the country includ- ing Tamweel Tower, The Torch, and the Address Hotel Downtown Hotel. All of the towers used the traditional Aluminium Composited Panel (ACP) made of combustible material (LDPE). Though the reasons behind build- ing fires are range from spark in electric wiring to cigarette- butt thrown carelessly, the fire itself propagates because of thermoplas- tic core material used in the manufacturing of aluminium composite panels, which works as fuel in fire propagation. There are three elements – fuel, oxygen and heat– that are required to combine before ignition and combustion can take place to start and continue the fire. Zohaib Rahman, division head at Alu- copanel Middle East urged: “Ban every- thing other than Class A2 in accordance to EN 13501 for high-rise buildings or structures which have a height of more than 15 metres. Buildings with height any less than 15 metres can have Class B1 in accordance to EN 13501 OR Class A in accordance to ASTM E84 grade material, however any grade less than B1 should not be considered at all under the new UAE Fire-safety code 2016. “Any ACP material which contains combustible components will not be able to get Euroclass A2 fire certification as they won't pass the test. A product with the main ingredient of the core ma- terial, which disallows the diffusion of flame and restricts the development of smoke in accordance to following test standards.” the steel industry but to the construc- tion business as a whole,” said An- drey Burtsev, vice president of pipe sales at Interpipe MENA. “Uncertified steel cannot be guaranteed for its in- tegrity, strength or durability.” Did you know? Almost 90% high-rise skyscrapers built before 2012 in GCC are cladded with non-fire-retardant grade aluminium composite panels due to the lack of stringent measures and codes.
Ramalingam Thirunavukkarasu Senior CAD & BIM Analyst, Public Works Authority - Ashghal Bhushan Avsatthi Associate Director AEC, Hi Tech Prof. Nashwan Dawood Professor, Teesside University Moawia E. Abdelkarim Managing Director - Middle East, DPR Construction Bisrat Solomon Degefa BIM Project Manager, Atkins Nithin Thomas Senior BIM Engineer, Habtoor Leighton Group Winn Gomez BIM Manager, Oger International Abu Dhabi LLC Muhammad Jabakhanji Head of VDC + BIM, Alpin Limited Anthony Lapierre Senior Manager- BIM, Meraas Hamzeh Nawar Senior Manager- BIM, Meraas Michael Turk Construction Manager, Hill International Omar Selim BIM Specialist, Urbacon Contracting Bhanu Sri Prakash Gejjala Vice President - Project Architecture & BIM, RSP Architects Planners & Engineer Steven Lewis BIM Manager, ALYS JV Allen Jay Holland Senior Architect and BIM Manager, KEO International Consultants Derek Bankston BIM Manager, GHD Mohammed Mahboob BIM Specialist, BuroHappold Engineering Grant Crow Cost Planning Manager, MACE Group Future BIM Implementation Optimizing BIM Implementation to Improve the Management of Complex Construction and Infrastructure Projects 11-12 May 2016 InterContinental Hotel The City, Doha, Qatar KEY SPEAKERS INCLUDE: SPECIAL OFFER FOR READERS Advanced Conferences and Meetings FZ-LLC T: + 971 43614001 I F: +971 4 361 4554 I Email: opportunities@acm-events.com I www.futurebimqatar.com QUOTE BIMQM16 AND GET A 10% DISCOUNT Networking Partners Associate Partner Organized by:
construction business news me April 2016 66 NEWS R ising from the ashes in the ruins of ancient Perspolis in Southern Fars to the topaz clear waters running through the mountains in Damavand, it seems that Iran, the sec- ond-largest nation in the Middle East, is set to rise-up and reveal its beauty and potential to the rest of the world – well, at least to Europe anyway (American companies have a while to go yet). Having been one of the most talked about countries in recent years, most notably for the lifting of sanctions which are expected to open up what is arguably the sole remaining major hotel market largely untouched by interna- tional brands. With a population of approximately 80 million, there is huge potential for growth in both domestic and interna- tional travel to Iran. Moreover, the total number of hotels throughout Iran is just 640 (less than the number in Dubai alone) with only 96 hotels based in Iran’s capital, Tehran. The immediate demand is likely to be from business travellers, both domestic and international business persons, the latter of which are likely to flock towards internationally recog- nised brands, with an estimated 65% of of Ibis in Tehran, as well as in different classes, as demonstrated in the opening of the mid-scale Novotel Tehran, both of which opened in October last year. These opportunities in the market are coupled with a series of recent incen- tives for foreign investors provided by the Iranian Government. These incen- tives include 100% income tax exemp- tion for new hotels and tourist infra- structures in less developed areas for which a license is issued by the Iranian Cultural Heritage, Handcrafts and Tour- ism Organisation (ICHTO). Hotels and tourism projects in devel- oped towns and areas will also benefit from 50% income tax exemption and in addition to all this the Iranian govern- ment recently announced that it will issue visas for nationals of nearly 65 countries including citizens of most European countries, Australia, New Zealand, Qatar, Oman, and the UAE upon their arrival at Iranian airports. Despite the potential for political unrest, Iran is a signatory to over 60 Bilateral Investment Treaties (BIT) all which have been designed to encour- age and protect the investment of foreigners, so what else could potential investors want? business travellers already being part of hotel loyalty programmes according to a report issued by MasterCard. The current lack of any experienced hotel developers in Iran presents vast opportunities in all hotel classes. Ac- cording to reports, only 13 out of the 96 hotels in Tehran are classified as 4-and 5-star, although it is widely ac- knowledged that these would not meet internationally recognised standards for these classifications. Consequently, there is a clear opportunity for an influx of international class high-end hotels (which would also take market share from the existing 4 and 5 star hotels) as well as “true” luxury brands. Another significant opportunity has been flagged in the mid-range sector, with a particular focus on modern, trendy hotels to cater for the young population of Iran, leaving ample opportunities for mid-market inves- tors to benefit from this modern day gold rush. Additionally, there is likely to be a growing demand for budget hotels, particularly those maintaining interna- tionally recognised standards. Accor has clearly seen the potential across both the budget sector, in the opening The Persian empire Editor of Hotel News ME, Sophia Soltani, assesses the hotel development opportunities in Iran and how foreign investors are being enticed through lucrative tax-relief incentives Gran Meliá Ghoo, Caspian Sea