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THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS APRIL 2020 A RECAP OF CONEXPO- CON/AGG 2020 THE RISE OF LUXURY BRANDED LIVING EVENT REVIEW TALKING POINT Opinion WOMEN IN CONSTRUCTION CBNME recaps the stringent measures taken by the construction industry to keep people safe, to relief packages, and how this could change the way future projects are developed
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CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 // WWW.CBNME.COM 3 REPORT TALKING POINT COVER STORY PROJECTS OPINION TRUCKS EVENT REVIEW 14 16 20 28 32 34 36 14 20 34 // CONTENTS APRIL 2020 // ISSUE #62 S U B S C R I B E subscriptions@bncpublishing.net CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 Deputy Editor Kasun Illankoon kasun@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Photography Ahmad Khader ahmad@bncpublishing.net Marketing Executive Aaron Sinanbam aj@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 50 440 2706 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 UPP
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// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 6 // EDITOR'S NOTE MY THOUGHTS - COVID-19 This is a tough ed-note for me to put to- gether. In just a few weeks the COVID-19 pandemic has changes the entire land- scape of the construction industry. Make no mistake, there is no going back to the old ways of operating even for hands-on industry like construction. Health and Safety of workers on site, offices and at their accommodations will be scrutinised further. Construction sites could be head- ing towards more automation and ro- botics than ever before to minimise any health risks. Workplace dynamics will change dramatically and relationships between property owners and tenants will be revaluated. Has buyer confidence dipped? If so, how long before they start pumping money into future property de- velopments. All of this in a space of a few weeks. It has shown how the industry has needed to adapt and evolve on a daily basis due to the unknown of what could happen tomorrow. On the flipside, UAE has shown strong resilience in supporting businesses who are going through this crisis. The govern- ment is determined to ensure that busi- nesses escape unscathed for the wellbeing of the population and its economy. Are these forced changes in how we operate good or bad? Only time will tell but the rest of 2020 will be seen as test- ing period for all players involved in the construction industry. EDITOR’S NOTE Kasun Illankoon Deputy Editor kasun@bncpublishing.net Keep up to date with all the latest news, features and much more on our website. www.cbnme.com ON THE WEB
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// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 14 // REPORT Cautious real estate recovery in 2019 presented opportunities for buyers, tenants: Oman Property Market Report by Cavendish Maxwell OMAN’S REAL ESTATE OPPORTUNITY Cavendish Maxwell, a leading property consultancy and chartered surveying firm in the Middle East, released its Oman Property Market Report for 2019-2020 comprising key property data and trends for the country’s real estate industry. The industry report was compiled by the firm's in-house strategic consulting and research team, and covers key data and overviews into the residen- tial, retail, office, industrial, hospital- ity and entertainment sectors. Commenting on the report, Aditi Gouri, associate partner, strategic consulting and research at Cavendish Maxwell, said: Positive indications for the real estate sector, such as high growth in traded value of properties, emerged in 2019 despite Omanisation efforts impacting residential real estate sec- tor demand. However, since the be- ginning of 2020, Oman’s internal and external environment has changed rapidly. Whilst political stability has prevailed in the Sultanate after the change in power, the government is now increasing focus on the areas of budget deficits, debt and unem- ployment. At the same time, they will need to navigate the economic environment in the months ahead, which will be governed by the con- stantly evolving global situation and oil price movements. KEY MARKET INSIGHTS As part of its diversification strategy, Oman is focusing on its tourism industry as a key growth driver of the economy with the aim to boost the share of the sector’s contribution to GDP to 6-10% by 2040. In 2018, tourism contributed 2.9% to Oman’s GDP. Total tourism revenue in Oman stood at OMR 1.4 billion of which inbound tourists contributed 49% at OMR 680 million. With increasingly more expats leaving Oman due to the govern- ment’s Omanisation drive, residential property prices and rents have been impacted. Between December 2018 and December 2019 alone, the total
CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 // WWW.CBNME.COM 15 expat population in Oman recorded a year-on-year decline of 2.9%. Supported by the recovery in oil prices until 2019, Oman’s real estate market recorded a gradual recovery providing more opportunities for buyers and tenants. After recording a steep drop to OMR 2.6 billion in 2017 from OMR 6.6 billion in 2016, traded value of property in Oman improved slightly to OMR 2.7 billion in 2019. Against the backdrop of the tepid economic environment combined with the Sultanate’s protectionist pol- icies, a number of enterprises have found it difficult to sustain, impacting demand for office space. According to Invest Easy, between 2016 and 2019, the total number of registered enterprises decreased from 38,070 in 2016 to 21,913 enterprises in 2019, recording a negative CAGR of 17%. Oman’s retail sector is currently witnessing the rapid construction of new malls adding further pres- sure on the supply side. However, over the longer term, innovative retail concepts and online shop- ping are expected to drive growth in the sector. Oman’s hotel capacity has ex- panded over 80% in less than a de- cade to build a thriving tourism and hospitality industry. As of December 2019, total hotel occupancy rate in 3–5-star properties was 65.8% versus 66.1% in December 2018, showing a slight decrease. However, revenues rose 6.5% from OMR 25.7 million in December 2018 to OMR 27.4 million December 2019. Aditi Gouri, Associate Partner, Strategic Consulting and Research at Cavendish Maxwell
// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 16 // TALKING POINT Chris Graham, Consulting Partner, ESRAR Real Estate Consultancy, on the rise of luxury branded living BRAND APPEAL Since the turn of the millennium, the influx of the world’s leading interna- tional hotel operator brands has seen Saudi Arabia’s hospitality offering continue to broaden at an impressive rate. Unsurprisingly, with the massive national infrastructure development, robust economy, strong domestic demand, and increasing openness and outreach programme to attract overseas visitors under the stewardship of the Crown Prince, world-famous brands are eager to plant their flags in the Kingdom’s super-prime locations with luxury hotels and residences. Whilst the associated branded residential real estate market is still at an early stage with only a hand- ful of branded developments being launched, this is expected to become a significant growth sector in the real estate market. With such a large do- mestic concentration of high net worth individuals, an increasing number of expatriate workers coming to live and work in the country, and the imminent opening up of the market to foreign lifestyle investors, conditions are highly favourable for the expansion of the branded residence concept along with the many benefits that it offers. A notable example is Amaala on the Red Sea, which is attracting every leading hospitality brand to compete for the prime hotel and residential opportuni- ties that will be offered in this 6* well- ness and lifestyle resort. “Branding real estate creates an aspirational model that reflects the prestige and kudos associated with a luxury brand, facilitating stand-out in an increasingly competitive and
CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 // WWW.CBNME.COM 17 crowded marketplace, in which con- sumer expectations continually rise,” explains London based real estate marketing specialist Chris Graham of Graham Associates, author of a leading new report on branded residences, who hosted a workshop on the subject at the recent Saudi Arabia Hospitality Investment Conference in Riyadh. Branded residences first appeared around a century ago in New York, yet today it seems surprising that they did not become an established model until the 1980s – and, even then, they remained a niche segment of the luxury real estate market targeting a privileged HNWI audience. These premium homes are in the best locations and associated with a 5* hotel, which provides a range of ‘at home’ services and luxury amenities to its neighbouring residents. Not much has changed in terms of the overall concept during the past 35 years; how- ever, since the turn of the millennium the growth of branded residences has been truly astonishing. From 2002 to 2012 the number of hotel brands offer- ing residences increased tenfold and is forecast to grow by a further 27% in the next three years. “This remarkable growth has been driven by wide-rang- ing and proven benefits for develop- ers, operator brands and purchasers,” observes Mr. Graham. “I describe this as an unusual “win-win-win” scenario, in which all of the parties can benefit.” Mirroring the increase in global wealth that has simultaneously multi- plied the number of HNWIs since the new millennium, the growth is also evident in the variety of brands as well as global locations. Mr. Graham highlights how market participants have expanded beyond traditional hotel brands, now spanning a wide variety of sectors (and which he ac- curately predicted will continue to broaden). Companies licensing their brands to luxury residential real estate now include automotive manufactures (e.g. Porsche, Aston Martin, Lambo- rghini), interior designers (such as YOO), “Starchitects” (renowned global architects like Gensler, Foster+Partners, WATG), fashion and jewellery (high- end consumer brands such as Bvlgari, Versace, Missoni, Fendi, and Armani), restaurants (e.g. Nobu and Hard Rock) and media / entertainment companies (e.g. Paramount, Walt Disney, Fash- ion TV, and now high-end publisher Condé Nast). However, with so many brands from an ever-widening spectrum of sec- tors now participating, differentiation, relevance and positioning are essen- tial. “As the branded model progres- sively becomes the norm rather than the exception in many destinations,” comments Mr. Graham, “it is crucial to ensure that today’s wealthy home- buyer understands how one brand will benefit his or her lifestyle and invest- ment ambitions over another.” Many experts agree: “In an increasingly congested market, the winning brands will be those that can seamlessly man- age the residential experience for the homeowner,” adds Muriel Muirden, Managing Director of Strategy at Chris Graham, Consulting Partner, ESRAR Real Estate Consultancy
// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 18 WATG and a leading expert on global branded residences. “This is why established luxury hotel brands with proven hospitality credentials and world-class reputations can shine in the residential arena,” says Chris Graham, who has worked with numerous luxury developments around the world over the past two decades. “It is no longer simply about bricks, mortar, marble worktops and gold-plated taps; it is much more about the superior quality of life that residents will experience and how the brand can deliver these,” he explains, adding that this extends into security, wellbeing and sustainability, which are now increasingly important consider- ations for 21st century homebuyers. “On the important and topical issue of sustainability, rising consumer aware- ness about the serious threat to the global environment caused by non- eco-friendly products and processes is forcing real estate developers and hospitality companies to pay much more than merely lip-service to it.” Whereas the preferred choice of accommodation among wealthy Saudi families is villas, increasingly resi- dents and ex-pats are embracing the convenience of high-rise luxury living, which has spurred growth of luxury residential towers in major cities across the Kingdom. Although most are not branded, they have introduced the concept of lateral elevated living and are paving the way for luxury branded condominiums in the region, mirror- ing the extraordinary growth seen in neighbouring GCC countries. A growing trend among wealthy purchasers is for the practical conve- nience offered by spacious vertical living. “We are certainly seeing more supersized apartments,” observes Mark Davison, Head of Design at world-leading developer of branded real estate YOO, which works with legendary designer Philippe Starck. “These appeal to wealthy clients that like the convenience and security of spacious, lateral living - especially with the added benefit of in-house concierge and housekeeping services on hand so they do not need to keep large numbers of staff, such as would be required in a stand-alone home.” “We detected a shift in the market whereby more wealthy families desire all the premium facilities, service and security that are associated with mod- ern condominium living, but they have no wish to compromise on space,” comments Arun Pathak, Managing Di- rector of WelcomHotels Lanka, whose ITC branded Sapphire Residences in Colombo include some of the largest apartments seen in South Asia (includ- ing two 19,000 sq ft penthouses). “This is why we created the concept of Sky Mansions. These mega-sized apart- ments are specifically designed to en- able whole families – and, if required, their staff - to live in unrestricted comfort, enjoying similar spaces that they would have in a standalone villa, but with the added benefit and conve- nience of extensive leisure facilities on their doorstep. It offers the best of all worlds.” So, does having a renowned 5* name over your door really justify the higher price tag? “Well, if you look at the astonish- ing growth in the number of branded residences around the world, clearly large numbers of wealthy homebuyers consider that the numerous benefits that they deliver are indeed worth the extra cost,” says Chris Graham. “Fundamentally, luxury brands provide reassurance in terms of quality, design, maintenance, service and manage- ment of the residences; buyers know what they can expect. An established brand’s involvement implies a supe- rior level of protection against risk, giving added confidence to buyers.” He points out that this is particularly relevant when buying an off-plan property, as purchasers know that it is likely to be completed, equipped, furnished and managed to the high standards that are commensurate with that brand. “It is all about peace of mind, which is a rare and valuable commodity in this day and age.” // TALKING POINT Benefits Associated with Owning a Branded Residence • Prime location • Cutting-edge design, technol- ogy, security and architecture • Trust, credibility and prestige associated with a luxury brand • ‘Trophy’ status of owning a 5* home in the best location • World-class leisure facilities • Stronger resale values • Higher rental income • Professional management • Hassle-free ownership • Premium/luxury lifestyle • 24/7 concierge services • Owner benefits, e.g. residents’ discount card, privileged access to the brand’s other properties • Like-minded neighbours – a community of peers
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// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 20 // COVER STORY CBNME recaps the stringent measures taken by the construction industry to keep people safe, to relief packages, and how this could change the way future projects are developed In an exclusive statement to CBNME Swaidan Saeed Juma Al Naboodah, Managing Director, Al Naboodah Group Enterprises said: “At Al Naboo- dah Group Enterprises, we always place the health and well-being of our employees as a top priority, and dur- ing times of crisis this is no exception. The COVID-19 pandemic has created an unprecedented challenge for our HSE and Facilities Management teams, and they have responded accordingly with a comprehensive range of mea- sures designed to limit the spread of Coronavirus and ensure the safety of our employees. Our Rapid Response Team has also worked tirelessly to implement our business continuity plans in order to ensure that we can maintain critical functions and operations. This includes establishing back-ups for essential skills and materials, and remote work- ing protocols with secure access to our company networks and teleconferenc- ing capabilities.” The teams rose to the challenge, with a COVID-19 Management Plan established on March 10th, and imple- mented within days across all of the Group’s offices, showrooms, yards, worksites, accommodation and facili- ties. Concurrently, a Rapid Response Team was formed comprising repre- sentatives from departments across the entire Group, including Sustainability, HSE, Facilities Management, Group IT, and Marketing & Communications. Re- porting directly to the Group’s Manag- ing Director, the Rapid Response Team has been tasked with coordinating the With over 10,000 employees, 6,000 of whom are accommodated in the Group’s own residential facilities, responding sufficiently to the health crisis has represented a significant logistical challenge for the HSE and Facilities Management teams. AL NABOODAH OUTLINE RESPONSE MEASURES TO COMBAT COVID-19
CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 // WWW.CBNME.COM 21 response of the Group’s many business- es and departments to the crisis based on their individual needs, and ensuring that consistent and accurate messaging is conveyed to all stakeholders. Almost immediately, remote working drills were conducted to assess the ro- bustness of the Group’s VPN solution under heavy usage. After successful drills, senior management approved a work-from-home policy for staff deemed capable of working remotely. ADDITIONAL MEASURES TAKEN SO FAR WITHIN THE GROUP INCLUDE: • Issuing of regular communica- tions on preventing the spread of COVID-19, including display of posters on noticeboards in multiple languages promoting good hygiene and guidance on steps to take in the case of a suspected infection. • Increasing cleaning and disinfectant regimens across all offices, show- rooms, yards, sites and accommo- dations, paying particular attention to door handles, taps, keyboards, mouse, telephones, equipment, washrooms, and anywhere there is regular hand contact. • Deployment of hand sanitiser dis- pensers across all common areas and prominent places, along with posters encouraging regular use. • Deep cleaning and disinfecting of all staff and worker transportation after every journey, with particular atten- tion to hand holds, handles, seats and seatbelts. • Extension of working hours of medical facilities and clinics within Employee Villages, with additional resources to respond to potential outbreaks where necessary. • Coronavirus isolation and observa- tion areas established to quarantine those considered to be at risk of in- fection, with medical provisions and staff provided to constantly monitor and assess. • Separate catering provisions with in- creased health and hygiene measures to be provided to quarantine areas. • Routine screening of all employees with digital infrared thermometers and visual observation. Employees displaying any symptoms are iso- lated immediately. The Group’s various businesses and departments are reporting to the Rapid Response Team in real time, and adjustments are being made daily to respond to ongoing developments. It is also monitoring the websites of the Dubai Health Authority, the Ministry of Health & Prevention and the World Health Organisation, among others, to keep abreast of the latest news and in- formation. These health measures and responses to the COVID-19 crisis may change based on new developments.
// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 22 // COVER STORY Khidmah, Aldar Properties’ wholly owned facilities management busi- ness, announced that it will be offering discounted disinfection and sanitiza- tion services for homes and businesses across Abu Dhabi through the coming period. This is part of Aldar’s recently announced programmes worth AED 100 million aimed at supporting its resi- dents, tenants, customers and partners. Abdulla Al Wahedi, Khidmah Chief Executive Officer, said: “To cope with the current environment, and driven by its wise leadership, the UAE is taking de- cisive steps to support communities and businesses. As such, we are compelled to play our part and offer our expertise to help residents and commercial tenants disinfect and sanitize their homes and workplaces at discounted rates.” “Residents can rest assured that they will not need to leave their premises during the sanitization and disinfec- tion process as our technical team will utilize odourless, organic cleaning prod- ucts certified by the Environmental Pro- tection Agency. We have also applied a strict cashless payment policy in line with heightened hygiene guidance.” We have also rolled out its own internal preventative measures to safeguard its employees and customers from infection, including disinfection and sanitization of workers’ accom- modation and buses and conducting daily employee health evaluations. The company has also used the Khidmah Training Centre to train its technical team on the procedures and specific products to be used in order to strictly follow all hygiene guidance provided by the UAE authorities and the World Health Organization among others. Khidmah focuses on providing facili- ties management and home mainte- nance solutions across different sectors including residential, commercial, retail, government, education, hospitality and healthcare. Services include integrated facility management, landscaping, cleaning, home maintenance, pest control, handyman services, energy management and many more. KHIDMAH OFFERS DISCOUNTED DISINFECTION AND SANITIZATION SERVICES TO HOMES AND BUSINESSES Abdulla Al Wahedi, Khidmah Chief Executive Officer
CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 // WWW.CBNME.COM 23 Lootah BCGas, a subsidiary of S.S. Loo- tah Group, the leading provider of gas utility and infrastructure services in the United Arab Emirates, announced a Co- vid-19 support programme worth AED 15 million in cooperation with Dubai Chamber of Commerce and Industry. The programme aims to support Lootah BC Gas’s residential and commercial gas utility customers in the UAE to face the challenges arising from Coronavirus (Covid-19). Eng. Yahya Lootah, CEO, S.S. Lootah Group, stated that Covid-19 support programme is in line with His High- ness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Min- ister of UAE, and Ruler of Dubai, to unite efforts to support business conti- nuity and stimulate the UAE economy. “Lootah BC Gas has a long standing corporate social responsibility pro- gramme that supports sustainability in business community and society. We are glad to work in cooperation with Dubai Chamber of Commerce and Industry to stimulate the contribution of the private sector as a true partner in supporting government measures to mitigate the impact of the Coronavirus (Covid-19) on various economic sec- tors” Lootah added. H.E Hamad Buamim, President & CEO of Dubai Chamber praised Lootah BC Gas’s initiative, which comes at the right time and reflects a high degree of responsibility, stressing that this is not the first time the company has proven its high standards in the labour market, and its reputation as a respon- sible institution, serving the community with its various initiatives. “The private LOOTAH BCGAS AND DUBAI CHAMBER ANNOUNCE AED 15mn COVID-19 SUPPORT PROGRAMME sector is a partner in dealing with such challenges, and its efforts and initiatives complement the effective governmen- tal measures to counter the spread of Coronavirus. The private sector must continue to show solidarity and coop- eration to overcome these challenges, moving forward,” Buamim remarked. Lootah BCGas’s Covid-19 support programme includes a package of direct financial support measures that benefit more than 50,000 residential customers as well as nearly 500 com- mercial establishments, most of which operate in the tourism sector, such as hotels and restaurants. The financial support package includes discounts of up to 20% on gas consumption.“ Lootah BCGas is committed to supporting cus- tomers and business partners to meet the challenges imposed by the current circumstances, in order to enhance their ability to fulfil their obligations, espe- cially towards their workers in order to protect the skilled work force and maintain business continuity,” Lootah said. These financial support measure will be provided over a period of three months to both residential and com- mercial customers through a dedicated team operating out of the company’s call centre in Dubai. “We are committed to maintain the safety and health of our customers, employees and the wellbe- ing and stability of their families, as a true guarantee of business continuity,” Lootah added. Hamad Buamim, President & CEO of Dubai Chamber
// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 24 Al Hamra has created an economic relief package which includes several initiatives to help ease the financial burden of its valued mall tenants, free- hold owners, residents and customers, impacted by the Covid-19 outbreak. The announcement is in line with the UAE Government and Ras Al Khaimah’s objectives to support the economic en- vironment and boost financial stability. The initiatives include up to 3 months rental relief, reduction in cooling consumption charges, deferral of fees, waiver of payment delay penalties and payment due date extensions. Dedicated teams have been deployed to assess specific requirements of various businesses and individuals to provide economic relief and support. The tasked force is also reassessing cost-effectiveness of operations in order to pass on the ben- efit to the end users and customers. Benoy Kurien, Group CEO of Al Hamra, said: “We have been proud partners in shaping the real estate landscape of Ras Al Khaimah and this pride comes with a responsibility to the Emirate as well as to our partners and consumers who have contributed to our success. This pandemic is reshap- ing the way we think about community and has made one thing strikingly clear: our interdependence. We are work- ing closely with our stakeholders to ensure that we recover from this period together, stronger and more resilient. “We understand the predicament faced by all and the impact of the Coronavirus outbreak on our economy. During these unprecedented times, we, are more committed than ever to stand firmly by our valued partners and cus- tomers. Our initiatives aim to support business continuity by offsetting some of the impact, and to promote the wel- fare of the community. Our dedicated teams will reach out to our partners in the following days to understand and discuss their requirements and implement effective measures. We will continue to support the government, our customers and partners in all ways possible to overcome this challenging situation together.” AL HAMRA ANNOUNCES RELIEF INITIATIVES TO MINIMISE IMPACT OF COVID-19 IN RAK // COVER STORY Benoy Kurien, Group CEO, Al Hamra
CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 // WWW.CBNME.COM 25 Lootah Real Estate Development noted the ways in how real estate can change due to the threat of the coronavirus disease (COVID-19) pandemic—listing down its immediate solutions while advising long- term measures developers can do. As the UAE implements various measures to combat the spread of the disease, Lootah runs down the changes they have done, as well as recommends long-term solutions other real estate developers could observe to combat COVID-19. For short-term solutions, Saleh Abdul- lah Lootah, Lootah’s CEO, said they have focused on stricter sanitation mea- sures both for its occupants and staff. These include the provision of hand sanitisers in high traffic areas, limita- tion of people in elevators to ensure social distancing, placement of posters promoting health and safety, disinfec- tion of surfaces that are frequently touched (flat surfaces, lobby desks, countertops, kitchen areas, electronics, elevator buttons, doorknobs, etc.). It has also temporarily closed its amenities like gym, pools, sauna & spa as per the UAE guidelines in all of its properties. As an industry leader, Lootah also advises his peers from the industry to observe a healthy and hygienic environ- ment by implementing these measures to further improve the quality of living for its investors and community. “Small initiatives like adjusting indoor environments and improving ventila- tion, temperature and humidity can have a positive effect against viruses. While social distancing seems to be the temporary immediate action, I believe it is reasonable for the real estate com- munity to collaboratively think about solutions that incorporate preventive measures,” added Lootah. Lootah has also advised other indus- try leaders to think of long-term plans to guarantee the safety of everyone against the disease, such as the devel- opment of buildings with contingent designs that may act as preventive measures in the future. Such measures, he advised, may include touch-less technology in the buildings—wherein there could be automatic sliding doors and voice-acti- vated elevators. He added that another measure that could be implemented in real estate is the installation of heat map detectors to scan the temperature of each visitor at the building entrances. Lootah also recommended re-modelling the vent system of the building that involves air purification measures. COVID-19 WILL CHANGE REAL ESTATE DESIGN AND PROPERTY MANAGEMENT IN THE SHORT AND LONG TERM Saleh Abdullah Lootah, Lootah’s CEO
// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 26 // COVER STORY Al-Futtaim Group announced that it will be making a substantial contribu- tion to ease the financial burden of its retail tenants by offering a fund of AED 100 million to help its retailers affected by business disruption and slowdown due to the COVID-19 pandemic. The fund will cover up to three months’ rent relief for eligible tenants across its malls in an effort to aid the recovery of their businesses in the UAE. Over the last week, a taskforce has been established to examine how Al- Futtaim could support its retail tenants as COVID-19 forced most residents of the UAE to spend more time at home. The team was tasked with quickly de- veloping effective measures to help the Sultan bin Ali Al Owais Real Estate an- nounced a 45 day rent waiver to assist its tenants manage the economic effects of COVID-19. The Company that specifically develops properties to rent, and owns and manages a portfolio of over 3000 properties across the UAE is known for its emphasis on its long-term rental ethos and retention of residential ten- ants exceeding 20 years. affected tenants. Timothy Earnest, Group Director, Al-Futtaim Malls commented: ‘In these unprecedented times, we understand the difficulties faced by the businesses and the impact this current situation is having on our economy. As a business deeply attached to the wellbeing of the UAE, we have a role to play and have The decision came in line with pre- vailing global conditions resulting from the Corona Virus pandemic. “Tenants that have been with us for decades are practically family for us. While battling the spread of Covid19 is the responsibility of every UAE resident through Social Distancing and other measures, we just want to make sure that our tenants have one less thing to worry about during these difficult committed ourselves to finding ways to support while the malls remain open. We hope this contribution will help pave way for business continuity in this difficult environment.” He added: “Our tenants are of utmost importance to us always, but even more so in this challenging time. It is our duty to provide guidance and as- sistance to them in this time of need. All tenants will be contacted in the coming days by dedicated mall teams to discuss their individual requirements and process for relief.” Al-Futtaim Group’s mall portfolio in the UAE comprises of Dubai Festival City Mall and the newly opened Festi- val Plaza mall. times,” said Haleema Al Owais, CEO, Sultan Bin Ali al Owais Real Estate Sultan Bin Ali Al Owais Real Estate was established in 1972 and has grown to become a prominent real estate com- pany since. The company operates as a holistic conglomerate with all functions of rental real estate like Facilities Man- agement and Security under its own umbrella through its offices in Dubai and Sharjah. AL-FUTTAIM PROVIDES UP TO THREE MONTHS’ RENT FREE SUPPORT FOR ITS MALL TENANTS WORTH AED 100mn SULTAN BIN ALI AL OWAIS REAL ESTATE ANNOUNCES RENT WAIVER FOR TENANTS AMID COVID-19
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// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 28 PROJECTS IN SAUDI ARABIA CBNME looks at the latest projects currently underway in Saudi Arabia. This month, thanks to our intelligent partner ProTenders, we look into in detail of the Noble Quran Oasis Museum and Serafi Mega City projects // PROJECTS
CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 // WWW.CBNME.COM 29 The project's scope of work consists of four mixed-use towers located at Tahlia area of Jeddah, Saudi Arabia. The development includes a 24-storey 5-star hotel, 2 office towers each comprising 25 floors and a 4-storey shopping mall, restaurants with a podium, parking facilities and infrastructure works. Apart from the standard accompaniments, the complex will house the country's first IMAX theatre and have a restaurant located on the bridge linking the two towers at a height of 160 meters. upon completion, the twin towers will be the tallest structures along the Red Sea coast. SERAFI MEGA CITY FACTS • Built-Up Area: 200,000 m² • Budget: $205M • Period: 2006 - 2020 • Plot Size(m2): 450000.0 • Structures: 4 • Hotel Stars: 5 97% PERCENTAGE COMPLETE
// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 30 // PROJECTS The project's scope of work consist of a museum located along King Salman Road, Madinah, Saudi Arabia. The project includes construction of 'The Holy Quran Oasis' which will be a cultural center and a specialized 100,000 square meters (m2) museum that includes main entrance, museum shows, quran research center, hall of (hymns, quran stories, miracles, sciences of the Koran, Quran and Muslim arts, children's hall, visiting hall and exhibition hall), quran library, administration office, special teaching sections for men and women, conference center, research center for Quran studies, research department, restaurants, visitor’s facilities, open parks, shopping, services areas, car parking, warehouse, related facilities and interactive audio-visual presentations on the most important topics related to the Holy Quran, accompanied by data and information integrated in a way that makes this Oasis a world-class cultural and knowledge landmarks. The project aims to link the historical past of the Holy Quran with the stage of starting towards the future, finding a means of communication and an educational institution offering all the topics in relation to the Holy Quran by means of presentation for all age groups, in addition to preserving the heritage of the Holy Quran. The Qur'an Oasis, which will serve both academic and recreational purposes, will also display more than 3,000 rare manuscript copies of the holy book. NOBLE QURAN OASIS MUSEUM PARTICIPANTS • Al Madinah Al Munawarah Development Authority • SCTH • Ministry of Islamic Affairs Endowment Dawa & Guidance Affairs • Saud Consult • Rafael de La-Hoz Arquitectos • Gerber Architekten • PACE • Jamal Abdul Fatah Jaroudi Contracting Establishment 37% PERCENTAGE COMPLETE
CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 // WWW.CBNME.COM 31 FACTS • Budget: $200M • Period: 2014 - 2021 • Plot Size(m2): 200000.0 • Structures: 1
// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 32 // OPINION While the number of women working in the construction sector worldwide has risen proportionally over the past de- cade, the stereotypical image of men on worksites and in corporate boardrooms is still a fair reflection of the reality for our industry. Gender equality has be- come a hot topic in the construction sec- tor in recent years, reflecting a broader societal demand that women can and should play bigger roles in industries that are traditionally male dominated. No doubt negative stereotypes persist among men working across all levels of the construction industry, which makes our challenge as female professionals all the greater. Yet, with the industry facing a loom- ing skills shortage, the onus is firmly on employers to recruit capable and ambi- tious staff regardless of their gender. The UAE’s construction sector is facing a significant human resources challenge in this respect. With the projects market forecast to grow by up to 10%, as per KPMG’s Annual Global Construction Survey in 2020, the cur- rent skills shortage poses a threat to contractors striving to meet challeng- ing deadlines. According to KPMG’s annual Global Construction survey, while 53% of industry leaders surveyed in the UAE were optimistic about the coming year, 44% of respondents cited time and cost overruns respectively as the biggest hurdles facing capital con- struction projects currently underway in the Emirates. Women can play a major role in WOMEN WHO BUILD With the UAE’s construction sector expected to grow by up to 10% in 2020, female recruits can play a key role in helping solve one of the industry’s biggest challenges, writes Morgan Tuckness, Head of Technical Services & Development - Global Hospitality at Drees & Sommer
CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 // WWW.CBNME.COM 33 meeting this skills shortage and rein- vigorating construction workforces. Recent research published by the UN’s Women’s Empowerment Principles (WEPs) initiative estimates that ending discrimination against female workers can enhance overall workplace produc- tivity by up to 40%. Many of the industry’s biggest players are slowly embracing this ethos and we have witnessed a shift in the level of effort and focus when it comes to gender balance in the workplace. This is reflected in the increasing number of female professionals employed in the construction sector, albeit, many in entry and junior-level roles. However, the lack of women working in mid-tier and senior roles reflects the greater challenge facing those trying to push through our industry’s glass ceiling, which is not moving as fast. Further ex- acerbating the challenge facing women aspiring to a career in the construc- tion sector are the lack of employment policies designed to help them forge a successful path in our industry. Given the historically larger male talent pool that exists in our industry, employment applications made by men will, at least for the foreseeable future, outnumber those made by women. To redress this imbalance, employers should be urged to adopt a policy de- signed to ensure female candidates are better represented during the interview process, one way to do this is to make sure job postings are not pulled down until there is a female candidate. Another major issue facing both men and women working in the construc- tion industry is the lack of realistic and flexible HR policies. Employers should be urged to adopt a more dynamic ap- proach to supporting working parents in the industry. Traditionally, there has been a significant drop-off in the number of women working in mid-level professional positions in our industry when they marry and decide to start a family. By providing more flexible working conditions and benefits for two-person working households we will create eq- uitability. This should not be perceived as a symptom of entitlement – it’s more a case of trying to create a conducive work environment for both male and female professionals, which I believe will lead to a better gender balance in construction workplaces. Having spent the past 15 years forg- ing my own career in this industry, I am encouraged by the growing number of women working in key roles. For those women considering their own career in construction, I would urge them to be tenacious and confident – it is a challenging path, but there are so many amazing opportunities here in the Middle East and women shouldn’t be discouraged by being in the minority. I would also encourage them to seek a mentor and take advantage of the growing number of networking opportunities that now exist for female construction professionals in the region. We all need an advocate. Lastly, I urge all of my female col- leagues to maintain the pressure on employers and remind them about commitments they have made about hiring women and promoting a healthier gender balance and fostering diversity and inclusion.
// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 34 // TRUCKS 2020 Targets for Scania Middle East for 2020 are to grow in all markets, enter new segments and extend our product and service offering in the region. We aim to take the lead in sustainability by providing our customers not just with the product but complete sustainable transport solutions. NEW TRUCK GENERATION The New Truck Generation is a result of ten years of development work and investments of over two billion Euros, Scania has made significant improve- ments in this and some of them are highlighted below- • New design and shape of the front and chassis for improved aerodynamics • Powertrain updates resulting in ex- ceptional fuel efficiency and driving performance • Extended storage options • Enhanced driver’s seat adjustment options • Maintenance based on your operation, increased uptime and profitability • Unique safety features such as roll-over curtain side airbags, Sta- bility Control, Active Emergency Braking (AEB), Electronic Braking System (EBS), • Adaptive Cruise Control (ACC) and Lane Departure Warning (LDW) • More space behind the seats for wider beds • New infotainment system with 7” touch screen • The Scania Opticruise automated gearboxes now feature a layshaft brake for even smoother and much CBNME caught up with Erik Bergvall, Managing Director at Scania Trucks, to discuss about the company’s prospects for 2020 and how their new truck generation is a game changer for the industry. SCANIA
CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 // WWW.CBNME.COM 35 faster gear shifting, actually twice as fast when shifting up. And as option we also have a version with a clutch pedal that can be used on demand when you really need it, for example when manoeuvring in tight environ- ments. • We have also improved our road handling and the brake perfor- mance by 5% We offer the widest range of alterna- tive fuels in the industry – Hybrid, Bioethanol, Natural gas (CNG/LNG), Hydrogenated vegetable oil, Biogas and Biodiesel. Which one of them is the best alternative for you depends on the character of your business. Apart from the New Truck Genera- tion, in 2019 Scania introduced its first prototype Autonomous Bus and truck – the Scania NXT and AXL. The Scania NXT is the new battery electric self- driving urban concept vehicle designed to ferry commuters in the morning, deliver goods during the day and col- lect refuse at night. The Scania AXL is a fully autonomous cabless concept truck built for mining and construction sites. With the Scania AXL and NXT, we are taking significant step towards the smart transport system of the future, where self-driving will play a natural part. TECHNOLOGY AND INNOVATION Every Scania we’ve put on the road in the last decade has been full of smart technology, advanced sensors and wireless connectivity – which means that we have hundreds and thousands of constantly connected vehicles and engines in use all over the world today. The main reason to all of this is Data, there is no better way to improve something than analysing it real world usage. With the Scania Fleet Management system, you can get both information and insights – a lot more of it than our free monitoring reports. All constantly updated and available 24/7. Safety is also another feature we heav- ily invested into, with the 360 degree HD view camera system you can park, load and manoeuvre through traffic much safer. The Adaptive Cruise control helps keep a safe distance from surrounding vehicle when cruising. This has been improved to handle speeds all the way down to stationary, making cruising safer and easier even in traffic jams. The side detection feature increases safety by detecting objects in blind spots. It consists of 2 systems – Vulnerable Road User Col- lision Warning and Blind Spot Warning. CHALLENGES Most markets in the Gulf are still suffering due to the heavy fall in the construction sector which has affected all suppliers of heavy duty trucks. Also Oil & Gas segments are still under pres- sure. We hope to see improvements in the next year within these sectors as they represent a major share of the heavy truck sales.
// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 36 // REVIEW CONEXPO-CON/AGG is North America’s largest construction trade show. Held every three years in Las Vegas, this massive event features the latest equipment advances and newest technology applications in every aspect of construction. CONEXPO-CON/AGG 2020 Whether it is artificial intelligence, au- tonomous equipment, big data, small gadgets, new energy technologies, sustainable highways or the future of cities themselves, CONEXPO-CON/ AGG/s Tech Experience focuses on what contractors and manufacturers need to know to keep ahead of the technology curve. “I’m amazed at what some of the minds we have here at the Tech Expe- rience think up,” said Helen Horner, Director of Education Programs at the Association of Equipment Manufactur- ers (AEM), the organization that co- owns and operates CONEXPO-CON/ AGG. “What we’re seeing in bringing all these ideas to one place is how some of them connect to form new ideas. Hopefully, those ideas germi- nate after the show to give us even more amazing technology to explore at the next CONEXPO-CON/AGG.” One example was a Tech Talk on wireless energy transfer built into road- ways to continuously charge electric vehicles while they drive, followed by a talk on turning concrete into a battery. “New ideas and new connections are the core of what we want people to experience at CONEXPO-CON/ AGG,” said Show Director Dana Wuesthoff. “The big iron and big deals are definitely fun, but the technology, information and education are what secure the future of this industry, and the continuing viability of the busi- nesses that attend and exhibit here.” CONEXPO-CON/AGG EXPLORES THE FUTURE OF CONSTRUCTION
CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 // WWW.CBNME.COM 37 The high-performance W 220 Fi and W 250 Fi models, the flagships of the new generation of machines, particu- larly impressed the industry audience during their world premiere. Like all of the large milling machines in the new F series, they set standards when it comes to milling performance and machine efficiency, primarily thanks CASE Construction Equipment previewed all new enhancements at CONEXPO- CON/AGG 2020 to its G Series wheel loaders that feature increased technology to improve production and the over- all operating experience. These latest enhancements (standard or optionally fit based on feature) are anchored by a large touchscreen display that serves as the command center for the new inte- grated onboard payload system, control customizations, improved telematics and streamlined operating parameters. “Wheel loaders are well-suited to in- cremental improvements in technology and operation that achieve considerable cost savings and productivity gains,” says Andrew Dargatz, product mar- keting manager, CASE. “The technol- ogy advances incorporated into G Series wheel loaders through the new operator interface simplify operation, streamline equipment reporting and maintenance activities, and give each operator more tools to improve overall performance and efficiency.” These wheel loader technology enhancements will further benefit from the launch of the new CASE North American Uptime Center — a remote monitoring control center where customers who opt in can have their equipment monitored in real time by CASE service technicians. The goal of the Uptime Center is to connect CASE, its dealers and customers with mean- ingful and actionable operating data — and G Series wheel loaders with the new 4G modem and other tech advancements/improvements will be one of the first CASE product lines to benefit from this capability. WIRTGEN LARGE MILLING MACHINES IMPRESS INDUSTRY AT CONEXPO-CON/AGG 2020 CASE PREVIEWS NEW TECHNOLOGY ENHANCEMENTS FOR G SERIES WHEEL LOADERS to the innovative Mill Assist machine control system. This is because Mill Assist helps the milling machine opera- tor optimize machine performance and significantly reduce diesel, water, and pick consumption as well as CO2 and noise emissions. Practical experi- ence shows that users already use Mill Assist more than 90% of the time their machine is in operation, significantly cutting costs as a result.
// CONSTRUCTION BUSINESS NEWS ME // APRIL 2020 38 // REVIEW The North American premieres of Vögele’s WITOS Paving Docu, Hamm’s HP 180i tired roller, and Kleemann’s MOBICAT MC 120 Zi PRO jaw crusher also underscored the group’s position as the innovation driver and technol- ogy leader in the road construction sector. The Wirtgen Group Technol- ogy Center, where visitors could learn about the specialized product brands’ application technologies in more de- tail, was also extremely popular. A new addition to the next gen- eration of Genie® S® telescopic boom lifts, the Genie S-80 J model is a higher reaching version of the recently introduced Genie S-60 J model. These new Genie telescopic booms are right-sized for complet- ing work-at-height applications and provide the essential performance that operators need to get work done at height from a jibbed boom. The Genie S-80 J model has an unre- stricted platform capacity of 660 lb (300 kg) to get the job done with two occupants, plus tools, and a 6-ft (1.8 m) jib, leading length and capacity for low-weight booms in this height category. With a platform height of 80 ft (24.4 m) and horizon- tal reach of 55 ft (16.8 m), this new boom provides operators with access where it’s needed — at the top of the envelope. “This second model introduction in the Genie essential performance boom line offers rental companies the opportunity to increase their rental return on invested capital (rROIC) by mixing their fleets with a variety of Genie booms, matching the right boom to the right applica- tion,” says Sean Larin, Genie Product Manager, Terex AWP. According to Larin, within a rental fleet, the Genie S-80 J model comple- ments the popular heavy-lifting Genie S-85 XC™ (Xtra Capacity™) model, which is well-suited for heavy trades work. For example, Genie S-80 J man lifts are ideal for complet- ing work-at-height jobs, such as: • General construction • Maintenance • Inspections • Painting And, Larin says, Genie S-85 XC work lifts are well-suited for per- forming heavy-lifting work, like: • Commercial and industrial construction • Structural, electrical and plumbing • Specialty applications MASS-PRODUCED INNOVATION FROM THE WIRTGEN GROUP GENIE SHOWCASES NEW S-80 J BOOM AT CONEXPO 2020
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