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THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS REAL ESTATE Unshakable Resolve for Excellence PROPTECH The Pinnacle of Opulence CONSTRUCTION INNOVATION AWARDS KSA 2024 A P R I L 2 0 2 4 | C B N M E . C O M UNVEILING THE IMPACT THAKHER MAKKAH PROJECT MASTERPLAN
NEW IVECO S-WAY: HIGH TECHNOLOGY AND EFFICIENCY FOR ON-ROAD MISSIONS The new IVECO S-WAY, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator. 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio. NEW IVECO T-WAY: HIGH PRODUCTIVITY AND SAFETY ON OFF-ROAD TERRAINS With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-WAY features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications. DRIVE THE NEW WAY
18 REAL ESTATE UNSHAKABLE RESOLVE FOR EXCELLENCE Mark Phoenix, CEO of Sankari Properties, discusses with Vibha Mehta the company’s readiness to make a significant impact in the industry following its recent launch. 22 FORUM WEF: LEADING THE GLOBAL AGENDA Vibha Mehta and Akanksha Khatri, Head of Nature and Biodiversity at the World Economic Forum, explore the extent to which construction material production relies on natural resources. 26 ARCHITECTURE THE DYNAMIC DUO WHO CRATED DUBAI’S MOST EXPENSIVE PENTHOUSE 30 COVER UNVEILING THE IMPACT Eng. Abdulaziz bin Saleh Al-Aboudi, CEO of Thakher Development Company, discusses the substantial industry influence of their monumental project, the Thakher Makkah Project 36 PROPTECH THE PINNACLE OF OPULENCE Mahdi Amjad, Chairman and CEO of OMNIYAT shares more about his plans for 2024, the launch of VELA Viento, and his take on PropTech and smart buildings… 58 AUTOMATION TECH-INFUSED CONSTRUCTION Exploring New Age Technologies like Robotics in Modern Construction 60 INVESTMENTS KEY CONSIDERATIONS FOR GCC INVESTORS IN LONDON PROPERTY Recent research highlights essential aspects for GCC investors to evaluate when purchasing property in London 62 SUPPLIER QUALITY DELIVERABLES Doka expands its global reach and sustainability commitments 64 EXHIBITION INTERNATIONAL PROPERTY SHOW 2024 Speaking with Dawood Al Shezawi, President of the International Property Show (IPS), he discusses the achievements of this year’s event in Dubai 66 REVIEW BAHRAIN: ON A RISE CBRE releases Bahrain Real Estate Market Review Q4 2023, noting increased transactions but slight dip in total value Construction Innovation Awards KSA 2024 40 IN THIS ISSUE CBNME 30 22 2024 CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 3
Keep up to date with all the latest news, features and much more on our website and social media platforms CBNME.COM CBNME @CBNME CONSTRUCTION BUSINESS NEWS ME SUBSCRIBE subscriptions@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries, contact jo@bncpublishing.net T +971 50 440 2706 All rights reserved © 2023. Opinions expressed are solely those of the contributors. Logistics News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Logistics 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. Printed by United Printing and Publishing | upp.ae Images used in Logistics News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Joaquim D'Costa jo@bncpublishing.net Editor-in-Chief Vibha Mehta vibha@bncpublishing.net Sales Manager Alex Brown alex@bncpublishing.net Editorial Assistant Aya Zhang aya@bncpublishing.net Creative Lead Christian Harb chriss@bncpublishing.net Editorial Design Rizaldi Febrian Marketing Executive Aaron Joshua Sinanbam aj@bncpublishing.net Videographer Alexander Bungas 4 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
Nestled by the coast of Lusail sits the splendor of Raffles and Fairmont Doha, where luxury is rooted in even the smallest details. Open the doors to mesmerizing hospitality and make memories in a world of sophistication.
O n this bright morning, the radiant sun casts a bold shadow on my desk as I observe the bustling traffic on Sheikh Zayed Road. Amidst the confusion about expressing my thoughts accurately and politically, I contemplate silencing my inner voice. Despite my efforts to suppress it, loved ones have encouraged me to confront it. The recurring question of "Is it worth it?" prompts me to reconsider various aspects of my situation. Whether personally or professionally, I have control over many aspects of my life. However, in certain situations, the involvement of numerous stakeholders complicates matters. Therefore, adhering to the advice to keep conversations brief and concise seems prudent. But does this approach yield result, considering that actions often carry more weight than words? Nonetheless, some may characterize this as life's essence and advise accepting things as they unfold. Embracing this approach is akin to riding a rollercoaster with its ups and downs. Yet, like a rollercoaster, every ride eventually comes to an end. The distinction lies in the emotions evoked during the experience—whether one feels fear or enjoyment. Similarly, navigating through life's challenges requires following one's instincts. It promises to be an intriguing journey, offering opportunities to glean valuable lessons for personal growth and a fulfilling life. This edition highlights the winners of the KSA Construction Innovation Awards 2024, held in Riyadh on March 4, 2024. We also feature compelling discussions and insights from industry experts. As you delve into this edition, remember to mark your calendars for our upcoming annual MEP Awards 2024, scheduled for May 16, 2024, in Dubai. Don't miss the chance to submit your nominations! Happy reading! Inner Voice Vibha Mehta Editor-in-Chief vibha@bncpublishing.net Vibha Mehta vibhamehta01 @vibhamehta01 EDITOR’S NOTE CBNME
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D eyaar Facilities Management, a leading facility management (FM) solutions provider and a subsidiary of Deyaar Development PJSC, has announced its rebranding as ‘Ontegra’ to embark on a progressive future towards integrated, technology-driven solutions in the FM industry. This strategic move aligns with the group’s commitment to enhancing operational excellence and setting higher standards through innovation and sustainability. In conjunction with its new brand identity, Ontegra will introduce new services, emphasising using artificial intelligence to digitise the company’s service delivery. Additionally, Ontegra is transitioning to a Microsoft- based system, highlighting its commitment to research and development. With direct insights into shifts in consumer demand, the company will be better equipped to deliver customer-centric products and services. The term ‘Ontegra,’ a combination of the words ‘Onward’ and ‘Integration,’ denotes the fusion of cutting-edge technology with a commitment to operational excellence. This aligns with the company’s commitment to SMART (Sustainable, Methodical, Agile, Reliable, Technology-driven) principles and goals of utilising AI and technology to improve customer experiences and guarantee sustainable asset and building management. Along with the new brand identity, the company also revealed its plans to introduce two new voice-based AI-powered assistants ‘Techi’ and ‘Alegra’ built on OpenAI’s ChatGPT in the coming months. ‘Techi’ is an in-house, multilingual operations assistant that can mimic human conversations and perform tasks like scheduling appointments, preparing quotes, generating invoices, and more. Similarly, Alegra offers AI-powered customer support, seamlessly substituting for a conventional help desk representative to provide prompt DEYAAR FACILITIES MANAGEMENT UNVEILS NEW BRAND IDENTITY ‘ONTEGRA’ CBNME REGIONAL NEWS ADNAN JABRI, General Manager of Ontegra 12 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
REGIONAL NEWS and effective customer service. With revolutionary products designed to set new standards in Facilities Management, Ontegra reiterates its commitment to fully digitising internal and help desk operations and leading the industry in digital transformation. Saeed Mohammed Al Qatami, Chief Executive Officer of Deyaar Development, said: “The rebranding of our facilities management arm to Ontegra marks a pivotal transition for Deyaar. We are heading into a new era and are firmly focused on harnessing the power of AI and cutting-edge technologies to help us transform our operational efficiency and service delivery. Today, embracing the power of digital transformation is non- negotiable – it will take us into the future, enabling us to meet the dynamic needs of our customers in a more integrated manner. This strategic rebranding and the introduction of innovative services are just the beginning. With Ontegra, we are charting a course towards a future where our operations are more sustainable, our methodologies more agile, and our services more aligned with the expectations of a digital world.” Adnan Jabri, General manager of Ontegra, stated: “We are delighted to be making this strategic shift as Deyaar Facilities Management transforms into Ontegra for a new future. The vision of seamless integration of machine learning and artificial intelligence into our core business processes marks a significant milestone in this forward-looking journey. This transformation is a major undertaking that impacts every aspect of the business, from internal operations to customer relations, and is far more than a simple, strategic decision.” “In keeping with global standards, we have committed to implementing cutting-edge technologies that will transform customer experiences and enhance overall productivity, efficiency, and sustainability. As a result, Ontegra is well positioned to lead innovation with its revolutionary services and vision for a future where technology and operational excellence merge to reshape the Facilities Management landscape.” Facility management services in the UAE have matured to the point where advanced robotics, hardware, and software technologies are crucial to their continued success. As a proud member of the Deyaar Group, Ontegra ensures that clients continue to receive exceptional service with these technologies and is prepared to meet emerging challenges, solidifying its position as an innovator in the shifting landscape of facilities management. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 13
S audi-listed ACWA Power, the world’s largest private-sector water desalination company, a leader in energy transition, and a first mover into green hydrogen, announced the successful refinancing of USD 580 million of existing debt for the Al Dur Phase II Independent Water and Power Project (IWPP) in the Kingdom of Bahrain. ACWA Power acted as the project company’s sole financial advisor. The project, which has an investment value of more than USD One Billion, uses seawater reverse osmosis (SWRO) technology to produce 227,000 cubic meters per day of desalinated water and combined cycle gas turbine (CCGT) technology with the capacity to generate 1.5 GW of power. The project’s lenders include Ahli United Bank, APICORP, Al Rajhi Bank, Arab National Bank, Banque Saudi Fransi, Gulf International Bank, KfW IPEX- Bank, National Bank of Bahrain, Riyad Bank, and Standard Chartered Bank. Commenting on the announcement, Abdulhameed AlMuhaidib, ACWA Power’s Chief Financial Officer, said: “ACWA Power extends its sincere appreciation to all stakeholders involved in the refinancing process, including the lenders and advisors, for their solid support and commitment. The successful completion of this refinancing shows ACWA Power’s dedication to delivering sustainable and reliable infrastructure solutions that benefit communities.” “The Al Dur Phase II IWPP demonstrates Bahrain’s dedication to sustainable infrastructure development. It meets the growing demand for electricity and desalinated water and contributes significantly to the region’s economic and social development”,” said Thomas Brostrom, ACWA Power’s Chief Business Development and Investment Officer. Since achieving financial close in 2019 and operational commencement in June 2022, Al Dur Phase II IWPP has played a crucial role in enhancing the Kingdom of Bahrain’s energy and water security. ACWA POWER REFINANCES AL DUR PHASE II IWPP DEBT CBNME REGIONAL NEWS 14 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
REGIONAL NEWS U nder the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, Nakheel and Meydan will join forces with Dubai Holding to sustain and advance growth through a unified and integrated vision that builds on gains, spurs efforts and boosts Dubai’s global competitiveness. Nakheel and Meydan are set to become part of Dubai Holding under the leadership of H.H. Sheikh Ahmed bin Saeed Al Maktoum. The Board of Directors of both Nakheel and Meydan Company will be abolished. His Highness Sheikh Mohammed bin Rashid Al Maktoum said, “In a new milestone to reinforce and boost our economic growth, today we directed the inclusion of Nakheel and Meydan companies under the umbrella of Dubai Holding. This will form a global economic entity with a diverse portfolio in sectors such as technology, media, hospitality, real estate, retail, and more, led by Sheikh Ahmed bin Saeed Al Maktoum”. His Highness added, “The goal is to create a more financially efficient entity, owning assets worth hundreds of billions, and comprising global expertise across various sectors with which we can compete regionally and globally, achieving our national objectives, and realising the Dubai Economic Agenda D33”. He said, “Wishing all the best to the team on this new mission… We are optimistic about an upcoming phase where we will multiply our growth, compete with our ambitions, and achieve our economic vision for our people.” Since its establishment in 2004, Dubai Holding has continued to create positive strides to foster an innovation-driven knowledge- based economy. Dubai Holding lists Jumeirah Group, Dubai Properties and TECOM Group among its portfolio. TECOM Group owns and operates ten sector-focused business clusters, with Dubai Internet City and Dubai Media City being the flagships. Nakheel and Meydan have launched projects in multiple sectors, including real estate, retail, hospitality, food and beverage, leisure and entertainment and healthcare. Nakheel and Meydan will join Dubai Holding to develop further a highly diversified conglomerate operating in several sectors across real estate, tourism, hospitality, leisure and entertainment and investments. This move combines a complementary suite of services and expertise to diversify the economy and maximise its competitiveness in the global marketplace. This strategic vision will provide an ideal platform to address the growing global demand for specialised services. It seeks to leverage emerging opportunities and serve the global demand expected in the long term. NAKHEEL AND MEYDAN JOIN DUBAI HOLDING CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 15
U By Emaar announces a significant milestone in its growth: the renowned loyalty programme is now expanding internationally to the luxurious Address Jabal Omar Makkah in Makkah, Kingdom of Saudi Arabia. This move marks a critical development for U By Emaar, extending its exceptional benefits and experiences to a broader audience. U By Emaar has been at the forefront of redefining loyalty rewards. Emaar’s portfolio includes hospitality, dining, wellness, entertainment, and shopping, and it offers a seamless blend of lifestyle experiences and unparalleled rewards. The expansion to the holy city of Makkah reflects the programme’s dedication to offering its exclusive services to an international audience, enhancing the opportunities for members to earn and redeem Upoints in one of the most revered global destinations. With its innovative approach to loyalty rewards, U By Emaar combines exceptional lifestyle experiences with valuable rewards. Expanding into Makkah signifies a significant step in offering members more diverse experiences. Ideally located with stunning views of the Great Mosque of Mecca, Address Jabal Omar Makkah will be a crucial location for this new phase, providing members exclusive benefits and the chance to earn and redeem Upoints in a spiritually significant location. Elevating the Spiritual Journey with Exclusive Rewards Address Jabal Omar Makkah is poised to redefine luxury in the heart of Makkah, blending spiritual elegance with Emaar’s signature contemporary luxury. This prestigious hotel will offer members a memorable stay enriched by personalised services and exclusive benefits, including earning and redeeming Upoints on stays, dining, wellness experiences, and more. The decision to expand U By Emaar internationally stems from the company’s successful track record of providing members with exceptional value and distinctive experiences. Similar to the engaging events that have attracted large audiences to Emaar’s venues in Dubai, U By Emaar aims to offer compelling experiences for members at Address Jabal Omar Makkah. This expansion reflects our commitment to delivering unparalleled member satisfaction, as evidenced by consistently high satisfaction ratings. Emaar Hospitality Group’s spokesperson expressed enthusiasm about the expansion, stating: “This momentous occasion is not only a testament to our dedication but also a celebration of our members worldwide. We are excited to introduce the unique blend of luxury and spirituality embodied at Address Jabal Omar Makkah to our esteemed U By Emaar members.” Welcoming the World to Makkah with U By Emaar U By Emaar is delighted to invite its global members to immerse themselves in the spiritual splendour of Makkah, complemented by the unique benefits and personalised experiences available through the U By Emaar programme. This expansion marks the beginning of a new era in which our loyalty programme crosses international borders, fostering connections between hearts and cultures while striving to create exceptional and unforgettable experiences. U BY EMAAR EXPANDS WITH NEW VENUE AT ADDRESS JABAL OMAR MAKKAH, KSA CBNME REGIONAL NEWS 16 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
REGIONAL NEWS Q iddiya City has been announced as the Nexus Partner of the Esports World Cup, a global esports competition set to take place from July to August 2024 in Riyadh, Saudi Arabia. The three- year partnership will see the Qiddiya Gaming & Esports District become the official home of the Esports World Cup. Starting this year, Qiddiya City is the Presenting Partner of two distinct venues: The Elite Player Lounge and The Qiddiya Esports Arena. Abdullah Aldawood, Managing Director of Qiddiya Investment Company, said: “Our strategic partnership with the Esports World Cup shows our commitment to the gaming and esports communities. Through innovative partnerships and creating world-class assets, Qiddiya City aims to become a global gaming and entertainment hub.” Ralf Reichert, CEO of the Esports World Cup Foundation, said: “We are very excited to join forces with Qiddiya City. When we first saw their plans to build a city home for next-generation gaming and entertainment, it was hard to imagine – now, we see progress in the construction site every day. It’s an honour to be involved in this and to call Qiddiya City the home of the Esports World Cup in a few years.” Qiddiya City has been named the presenting partner of The Elite Player Lounge and The Esports Arena for the Esports World Cup. The Elite Player Lounge is designed for participating EWC professional players to train, relax, socialize, and prepare for matches. It will be outfitted with amenities and services to help the players reach peak performance. Qiddiya Gaming will also have its dedicated experiential zone around the competition venues, previewing the city’s ambitious Gaming & Esports District plans. Qiddiya City’s Gaming & Esports District has officially unveiled the world’s first Elite Esports Bootcamps. These cyberpunk-themed facilities are designed for esports teams to train and prepare for competition using the latest hardware and software. Hosting up to 20 different esports organizations simultaneously brings additional infrastructure to the industry and teams. Launched in December 2023, the Qiddiya Gaming & Esports District will be the world’s first mix-use gaming and esports district, attracting gamers from across the globe and cementing Saudi Arabia as the rapidly growing industry’s global epicentre. Located prominently within Qiddiya City, the Gaming & Esports District will be home to multiple dedicated esports venues — one of which will be among the top three most significant in the world — plus next-gen facilities that will host up to 20 top-tier esports teams simultaneously, each with dedicated facilities like scrim rooms and strategy theatre –– and the regional headquarters of leading video game companies. The vibrant space covers more than 500,000 square meters of gaming space and aims to attract 10 million visits annually, with 100,000 square meters set aside for retail, dining and entertainment venues. Qiddiya City is the latest partner to join the Esports World Cup — last year’s previous iteration of the international gaming and esports festival (Gamers8) included marquee companies PepsiCo, Razer, LG UltraGear, Aramco and HONOR as sponsors. The inaugural 2024 Esports World Cup will host major tournaments in StarCraft II, Dota 2, Counter-Strike 2, Mobile Legends: Bang Bang, Garena Free Fire and more soon-to-be-announced games. QIDDIYA CITY JOINS ESPORTS WORLD CUP AS NEXUS PARTNER CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 17
CBNME REAL ESTATE W ith over fifteen years of experience, Mark Phoenix has been deeply involved in the dynamic real estate industry of the UAE. He has worked alongside architectural luminaries like Zaha Hadid and Norman Foster and esteemed hospitality brands such as Dorchester Collection and Melia. Among his notable projects are Dubai’s iconic developments, such as The Opus, One Palm, The Lana, Arabian Ranches 3, and Orla Infinity. The Sankari Family has entrusted him with their vision, providing the opportunity to launch Sankari, a newly established real estate developer in the UAE committed to redefining luxury properties and elevated living. “I am incredibly thankful for this opportunity and immensely proud of our achievements in just over a year,” says Mark Phoenix, CEO of Sankari Properties. Establishing a new developer in the competitive UAE market posed significant challenges, but Mark tackled them with passion and determination. They are currently focused on their inaugural flagship project in Marasi Marina, Business Bay, slated for completion in 2027. Current State Of UAE Real Estate Industry The UAE’s real estate industry is undeniably vibrant, showcasing remarkable growth and innovation. “We commend our industry peers for their contributions. These companies have a strong track record of delivering high-end developments that redefine luxury living in the region,” adds Mark. UNSHAKABLE RESOLVE FOR EXCELLENCE Mark Phoenix, CEO of Sankari Properties, discusses with Vibha Mehta the company’s readiness to make a significant impact in the industry following its recent launch 18 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
UNSHAKABLE RESOLVE FOR EXCELLENCE A notable trend in the real estate sector is the emergence of branded residences, where developers aim to elevate luxury living beyond just housing, providing exclusive experiences. Through partnerships with renowned hospitality brands, they create unique offerings for customers. At Sankari, they acknowledge this demand, especially from the ultra- high-net-worth individuals (UHNWI) segment, basing their lifestyle offerings on hospitality services. Every aspect of design and development revolves around three key elements: services, amenities, and living experience. According to Mark, Dubai has witnessed a notable increase in projects created through partnerships with esteemed hospitality brands. He believes these collaborations offer exceptional value to end-users. This trend reflects a shift towards providing discerning buyers with more than just a property—rather, an enhanced lifestyle that goes beyond traditional expectations. Differentiator At Sankari, they differentiate themselves in multiple ways. Mark explains, “We have gathered top talent in the field, forming a powerhouse team committed to excellence in every project aspect. Our bold approach and unwavering commitment to quality distinguish us, ensuring the highest standards in every endeavour.” Significantly, their projects are fully financed, providing a solid foundation for success and inspiring confidence in partners and investors. What truly sets them apart is their inaugural project. Mark states, “We are fully committed to making a lasting impact on the industry.” With a steadfast dedication to pushing boundaries, they are not just constructing properties; they are forging legacies. This initial venture marks the beginning of their journey as they aim to shape the next 40 years of real estate innovation and excellence. Challenges In the current real estate environment, challenges are unavoidable, yet they also serve as opportunities for advancement. The constantly evolving regulatory landscape is a significant obstacle, necessitating flexibility CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 19
and adherence. Economic fluctuations also present hurdles, demanding adaptable strategies to mitigate risks proficiently. At Sankari, they confront these challenges directly. Mark continues, “We utilize our vast expertise and forward-looking strategies to manoeuvre through regulatory intricacies and economic fluctuations.” They remain at the forefront by promoting innovation and embracing technological progress. Transparent communication and outstanding customer service are crucial for establishing trust and nurturing lasting client relationships. Through resilience, ingenuity, and a steadfast dedication to quality, Sankari not only surmounts obstacles but flourishes, shaping the trajectory of real estate in the UAE. Innovations “We are dedicated to establishing new architectural brilliance and luxury living standards. Our commitment to crafting exceptional designs with unmatched functionality propels our innovative endeavours. We prioritize integrating advanced architectural concepts with practical solutions to elevate the living experience in our developments,” elaborates Mark. Furthermore, their focus extends beyond structures to encompass community-building and lifestyle enhancement initiatives. They harness technology for its ability to streamline operations and enhance convenience. They are actively incorporating elements of WELL certification into their design and development processes. Mark emphasizes, “Our market research indicates that upon project completion, we will be among the first residential buildings in the UAE to receive WELL accreditation,” underscoring the significance of this prestigious certification, which prioritizes human health and wellness in building standards. However, their true ingenuity lies in their capacity to reimagine spaces and experiences, fostering environments that inspire and enrich residents’ and stakeholders’ lives. Steeping Stone The inaugural project at Marasi Business Bay holds special significance for the Sankari Properties team, marking the commencement of their journey in real estate. These twin residential towers exemplify their commitment to delivering luxurious living spaces tailored to the needs of discerning clients. The towers prioritise ample space, privacy, and cutting-edge design, featuring three-, four-, and five-bedroom apartments ranging from spacious 7,000 sq. ft. units to entire floors. Located in Dubai’s prestigious neighbourhood, the property expands to include ten exclusive floating villas, which allow residents to enjoy panoramic views of the Dubai Canal. This CBNME REAL ESTATE 20 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
redefines Dubai’s living experience by seamlessly blending nature with architectural elegance. Additionally, each residence features spacious terraces for outdoor enjoyment and private pools to promote a wellness- oriented lifestyle. This project, managed by a renowned international luxury hotel operator, underscores their global commitment to enhancing residential living standards. Heading Into The Future “As we gaze into the future, Sankari’s evolution and innovation remain central to our vision,” shares Mark. “In collaboration with our design partners, Foster + Partners, we are dedicated to continuously pushing the boundaries of luxury real estate.” Keeping abreast of the latest trends, such as digital wellness solutions and biophilic design principles, Sankari aims to enhance mental well-being, reduce stress, and improve air quality within their residential buildings and wellness communities. The flagship project showcases terraces seamlessly blending indoor and outdoor spaces, ensuring year-round comfort for residents immersed in a balanced ecosystem focused on lifestyle enhancement. Residents will enjoy access to exceptional amenities meticulously crafted to promote a wellness- oriented lifestyle, including private pools, a spacious cinema room, a chef’s kitchen with private dining, a golf simulation room, tennis and paddle courts, and health and spa facilities. “Our unwavering commitment to excellence, quality, and luxury drives us to set new industry standards and establish Sankari as a brand synonymous with opulence and unparalleled living experiences,” concludes Mark. “With each project, we aim to offer a diverse range of elevated living experiences, catering to individuals seeking their ultimate dwelling or forever home.” UNSHAKABLE RESOLVE FOR EXCELLENCE CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 21
CBNME FORUM WEF: LEADING THE GLOBAL AGENDA Vibha Mehta and Akanksha Khatri, Head of Nature and Biodiversity at the World Economic Forum, explore the extent to which construction material production relies on natural resources. A kanksha Khatri serves as the Head of Nature and Biodiversity at the World Economic Forum, spearheading efforts to foster a global economy that is ‘nature-positive’ through collaborative initiatives involving businesses and policymakers. In 2020, they released ‘Nature Risk Rising,’ the inaugural New Nature Economy Report series report. This study indicates that approximately half of the world’s GDP is significantly or moderately vulnerable to natural loss. Subsequently, the second report, ‘The Future of Nature and Business,’ outlines 15 systemic shifts necessary to transition towards a nature- positive economy, potentially unlocking up to $10.1 trillion in annual business value and generating 395 million jobs by 2030. Their satisfaction peaked with adopting the Kunming-Montreal Global Biodiversity Framework (GBF) in 2022. This international agreement outlines the necessary actions by businesses and governments to halt and reverse nature loss by 2030, a goal often termed as ‘nature positive.’ AKANKSHA KHATRI, Head of Nature and Biodiversity at the World Economic Forum, 22 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
WEF: LEADING THE GLOBAL AGENDA To catalyze widespread nature-positive initiatives, businesses must grasp their unique dependencies and influences on nature within each sector. “Collaborating with Business for Nature and the World Business Council for Sustainable Development, the World Economic Forum has introduced sector-specific directives to aid companies in reshaping and enhancing their operations and supply chains,” says Akanksha Khatri, Head of Nature and Biodiversity at the World Economic Forum. This effort provides tailored guidance across 12 global sectors, encompassing industries such as cement and concrete. Strive to Attain For over half a century, the World Economic Forum has involved diverse stakeholders in fostering collaboration between the public and private sectors, engaging industries, and leading economic thought to enhance global conditions. The Center for Nature and Climate at the World Economic Forum is a collaborative platform dedicated to environmental preservation and advancing sustainable business strategies. Akanksha adds, “It aims to reach net-zero emissions, advocate for conservation and restoration of land and ocean, and enhance the management of natural resources such as food, water, and raw materials.” Construction Material Dependencies Construction materials, particularly cement and concrete, rely heavily on natural resources. For instance, water plays a crucial role in concrete production, with the sector currently CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 23
CBNME FORUM accounting for 9% of global industrial water usage. As urbanization continues to rise, the demand for water in the construction sector is anticipated to grow, especially in regions experiencing water scarcity, where 75% of the water needed for concrete production is projected to be concentrated. The industry relies on non-renewable resources like limestone, shale, and clay for cement production and hard crushed rock, sand, and gravel for concrete. Global aggregate production stands at 40-45 billion tonnes, with over 50 billion tonnes of sand extracted annually worldwide. “The exploitation of sand and gravel is of concern as current extraction rates of sand exceed natural replenishment rates, leaving mined ecosystems very slow or even unable to recover,” explains Akanksha. While some companies actively implement quarry rehabilitation and biodiversity management plans, the sector still contributes to land-use change and ecosystem disruption. Despite these efforts, quarrying activities persistently harm local ecosystems and habitats. Construction Material Eco- Improvement Actions “Our recent guidance, Nature Positive: Role of the Cement and Concrete Sector, outlines five priority actions businesses should take to contribute to a nature- positive economy transition,” highlights Akanksha. Business leaders in the construction materials industry must prioritize several key actions to promote environmental sustainability and biodiversity: 1. They should focus on enhancing water stewardship throughout the value chain to minimize water usage and reduce environmental impact. 2. Adopting advanced technologies and manufacturing practices can help curb greenhouse gas emissions and other pollutants. 3. Companies should prioritize quarry reclamation and rehabilitation efforts alongside robust biodiversity management strategies. Expanding circularity initiatives across the value chain can reduce waste and resource consumption. 4. Innovation should drive the development of products that actively support the transition to a nature- positive economy. These concerted efforts can lead to a more sustainable and eco-friendly construction materials sector. Biodiversity Business Integration Mainstreaming biodiversity in business entails integrating biodiversity concerns into corporate strategies, operations, and decision-making. This includes acknowledging the importance of biodiversity and ecosystem services, comprehending the effects of business operations on nature, and adopting initiatives to support conservation and sustainable resource utilization. “We see a huge gap in global biodiversity funding, estimated at around $700 billion annually. Given that public funding alone is unlikely to foot this bill, the private sector has a key role in helping bridge the gap,” shares Akanksha. Companies may explore various financial mechanisms to support biodiversity conservation, such as investing in payment for ecosystem services, green or blue bonds, voluntary biodiversity certificates, credit markets, and nature restoration funds. By evaluating the benefits and drawbacks of these options, businesses can actively contribute to meaningful biodiversity preservation in line with their internal goals and values. Future Path The World Economic Forum plans to enhance collaboration with policymakers, business executives, civil society, and financiers to integrate biodiversity considerations. Sector- specific guidance will be developed for Automotive, Mining and Metals, Port Operations, and Offshore Wind industries. Additionally, discussions with banks and investors will explore risks, opportunities, and transition strategies related to biodiversity. “To tackle the underlying systemic changes needed, we are starting to focus on mainstreaming the value of natural capital in investment,” highlights Akanksha. The newly established World Economic Forum CEOs for Nature group will champion all this knowledge. 24 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
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THE DYNAMIC DUO WHO CRATED DUBAI’S MOST EXPENSIVE PENTHOUSE Benjamin Piper and Boubker Benjelloun, Partners and Co-Founders at Benjelloun Piper Architecture, discuss the sale of the most expensive penthouse in Dubai, the ‘Como Residences Penthouse’ by Nakheel, in a historic move that solidifies the group’s position as a trailblazer in the world of architectural excellence. Words by: Roma Arora 26 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
THE DYNAMIC DUO WHO CRATED DUBAI’S MOST EXPENSIVE PENTHOUSE C an you tell us about your background and what inspired you to become an architect? Benjamin: I have been raised in Jerusalem, Cardiff, and Dallas, and am the son of a painter and a printmaker. Learning about Leonardo da Vinci’s life encouraged me to pursue a career in architecture. I’ve always wanted to be an inventor, and I discovered in my teenage years that producing things helped me overcome feelings of anxiety, which is still how I feel and find meaning and happiness in life. Boubker: From Morocco, a land steeped in ancient civilization, I was raised by a father renowned for his expertise in landscaping and a beautiful mother devoted to the noble cause of raising her children. From an early age, I discovered a passion for envisioning ways to enrich urban landscapes, frequently contemplating vacant areas and formulating projects to reimagine them. I remember the time when I was a member of the national swimming team and the countless hours spent in the water. Even in a context of extreme discipline and determination, my mind constantly delved into the realms of research and creation. I truly grasped the extent of my talent when I was student in Paris. I meticulously redesigned my 9sqm studio 36 times to achieve the perfect result. Even before I put pen to paper, I have this unique ability to envision the final outcome with utmost clarity. This was precisely the case with the Como Tower. I could envision the tower clearly in my mind long before we even initiated the project. This particular ability is something I’ve applied not only in architecture but also in various other fields. This insight motivates me to create environments that enriches people’s lives and communities. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 27
Now, I find myself at a stage in life where I strongly feel compelled to harness my vision to contribute to the community and strive towards creating a better world. Can you discuss any innovative or unique design elements you’ve incorporated into your projects? BENJAMIN & BOUBKER: In some ways, all of our projects are new and distinctive since they are tailored to the specific constraints of a given location, client environment, orientation view, and so on. So, I believe the one new thing is that we treat each of our projects as distinctive creations. In your opinion, what are some of the biggest challenges facing the architecture industry today, and how do you think they can be addressed? BENJAMIN & BOUBKER: One of the most significant difficulties facing architecture today is the introduction of AI as a new tool in the design process. One could say that this puts immense pressure on the architect’s aspirations to create unique designs that are fully fulfilled in a very short period. However, we believe we may gain from these new AI technologies by exploring a wider range of possibilities. Can you walk us through the design process behind the Como Residences Penthouse, particularly considering its distinction as the most expensive beachfront penthouse in the world? BENJAMIN & BOUBKER: The Como Residences Penthouse mock-up form was inspired by the aim to maximise views at various heights within the building: at the lower floor, which is oriented towards the North and South beaches close to the plot, the floor plate becomes round with views in all directions. The floor plate changes at the top reaches of the tower, orienting the major living spaces towards the palm and the stunning views over the ocean towards sunset. How did you approach balancing luxury and functionality in the design of the penthouse? BENJAMIN & BOUBKER: We balanced luxury and functionality in the penthouse’s design by providing very generous double-height entry spaces, as well as a customised art piece staircase and elevator. At the same time, the penthouse is highly practical, with its dedicated service entries and secondary access points that allow for full and seamless servicing of the property. CBNME ARCHITECTURE 28 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
What architectural features or elements do you believe contributed most to the penthouse’s record-breaking value? BENJAMIN & BOUBKER: We believe that the general form of the building, as well as its basic curving elegance, contributed to the penthouse’s record-breaking valuation as it sits atop a new recognisable icon for Dubai. What technological innovations or advancements did you incorporate into the penthouse’s design to enhance its appeal and exclusivity? BENJAMIN & BOUBKER: The penthouse’s design is simple and classic, without any needless technical complexity. It does, however, have a stunning art piece staircase, an integrated elevator balcony reflecting, pools, and a Jacuzzi bathing zone with sunset views. In what ways do you believe the Como Residences penthouse sets a new standard for luxury living in Dubai and around the world? BENJAMIN & BOUBKER: We believe that Como Residence Penthouse sets a new standard for luxury living in Dubai by demonstrating how the beauty of architecture can add a real and tangible uplift to the value of a property. What impact do you believe projects like the Como Residences penthouse have on the broader architectural landscape, both locally in Dubai and internationally? BENJAMIN & BOUBKER: Projects like the Como Residence Penthouse have an impact on the larger architectural scene because they show how clients will accept unconventional and bold architectural and structural techniques. Yes, the justification is strong enough from a commercial perspective. What opportunities do you see for architects and designers in the GCC market, particularly in light of the region’s rapid urbanisation and development? BENJAMIN & BOUBKER: The fast urbanisation and expansion in the GCC region still present a tremendous opportunity for architects and designers. One of the fundamental concerns facing modern designers and architects is the necessity to build and refine national identity and cultural identity in architecture. How does sustainability factor into architectural projects in the GCC region, and what sustainable design practices are gaining traction? BENJAMIN & BOUBKER: The GCC region’s architecture takes sustainability into account due to the harsh environmental conditions that our structures must withstand. The capacity to include energy model results in the early conceptual stages of design is one of the most important ways that sustainable design techniques are becoming more and more popular in the region. With the GCC countries increasingly investing in tourism and hospitality infrastructure, how do you approach designing projects in these sectors to stand out in a competitive market? BENJAMIN & BOUBKER: When it comes to designing, tourism, and hospitality infrastructure, there is an opportunity for designers in the region, to rethink paradigms of hospitality design, and where we can start to merge ideas around living hospitality and entertainment in such a way that offers new lifestyle opportunities. What advice would you give to aspiring architects or those interested in pursuing a career in architecture? BENJAMIN & BOUBKER: Young, ambitious architects who are interested in a profession in architecture should persevere, never give up, and ensure that their designs are implemented. Are there any upcoming projects or developments that you’re particularly excited about, either in Dubai or elsewhere? BENJAMIN & BOUBKER: Dubai is a city that is changing so quickly that it is not necessary to relocate to experience innovative urban design. I can’t wait to watch how new, multimodal modes of transit will transform the city, which was already deemed to be walkable, into a welcoming, connected urban hub. THE DYNAMIC DUO WHO CRATED DUBAI’S MOST EXPENSIVE PENTHOUSE CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 29
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UNVEILING THE IMPACT T hakher Development Company oversees the master planning and infrastructure of the Thakher Makkah project, a significant real estate endeavour in Saudi Arabia. With its expansive size and diverse range of hospitality offerings, including hotels, residential, and commercial spaces, this project is poised to enhance the quality of life for its residents and visitors. Once all development phases are completed, the Thakher project will accommodate over 1.6 million visitors and pilgrims. “This aligns with the goals of Vision 2030 to host 30 million Umrah performers and six million pilgrims by 2030,” says Eng. Abdulaziz bin Saleh Al-Aboudi, CEO of Thakher Development Company. He continues, “A primary objective of the project is to deliver exceptional services to pilgrims and Umrah performers, enhancing their overall experience. With its modern and unique development approach, the project aims to fulfil the expectations of visitors and investors alike.” Moreover, it fosters an appealing and sustainable business environment in the Holy City. Standing Out Covering a vast area of 320,000 square meters and approximately 1 kilometre from the Holy Masjid (Haram), the Thakher Makkah project stands out UNVEILING THE IMPACT Eng. Abdulaziz bin Saleh Al-Aboudi, CEO of Thakher Development Company, discusses the substantial industry influence of their monumental project, the Thakher Makkah Project CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 31
as one of the most comprehensive real estate ventures in Makkah. Its diverse facilities aim to elevate accommodation services in the city while fostering an appealing and sustainable environment for businesses and the community, generating over 30,000 job opportunities. Benefiting from strategic positioning and connectivity to major highways, the project allows investors and visitors, including pilgrims and Umrah performers, to reach the Holy Masjid (Haram) within just one hour from King Abdulaziz International Airport in Jeddah, with minimal traffic congestion. Moreover, its infrastructure includes essential amenities such as hotels, roads, tunnels, landscapes, shopping areas, restaurants, and cafes. The shopping centre within the project will feature 124 stores offering international and local brands, entertainment options for children and a variety of dining choices catering to diverse tastes. Additionally, the project boasts ample parking space for up to 10,000 vehicles and includes a mosque capable of accommodating 5,000 worshippers. Upon completion, the Residential and hotel apartments will be CBNME COVER 32 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
UNVEILING THE IMPACT available in various categories and for freehold ownership. Among the international hotels in Thakher Makkah are the Radisson Hotel, the Park Inn by Radisson, and the Novotel Hotel, the largest in the world in terms of room numbers. Technology Advancements At Thakher Makkah, environmental sustainability is a top priority. For example, this project consciously tries to reuse cut rocks for road paving and selects materials that adhere to energy-saving standards and waste-reduction practices. Moreover, integrating advanced technology into construction processes drives down local building costs and boosts overall efficiency, leading to more competitive pricing and accelerated project completion times. Upcoming Projects “Our main objective now is to complete the second phase of the project by 2024. Our business success is measured by our commitment to delivering the project according to the timelines set and providing unprecedented high-quality services and opportunities to investors and visitors,” explains Abdulaziz. It’s essential to highlight recent significant project CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 33
unveilings within the scope of Thakher Makkah, including the introduction of the “Radisson Hotel & Residences” with a value exceeding SAR 200 million. Furthermore, they announced ‘Thakher Gardens,’ with a value exceeding SAR 2 billion. This project encompasses three hotels and residential towers spanning 11,000 square meters and comprising nearly 400 hotel rooms and over 1,500 hotel residential units. Future of KSA’s Real Estate “At Thakher, we believe that the real estate sector in Saudi Arabia is very promising, especially in light of the government vision and initiatives, like the decision to issue Umrah visas in less than 24 hours, which is positively impacting both the real estate and hospitality sectors in Saudi Arabia,” adds Abdulaziz. This was evident recently as hotel occupancy rates in Makkah surged to nearly total capacity, exemplified by establishments like the Novotel Thakher Makkah Hotel during the Hajj season and Ramadan. This signals a prosperous period for the Kingdom’s construction and hospitality industries. To Aspiring Developers The Kingdom’s successful bid to host Expo 2030 aligns with a pivotal year for advancing the objectives outlined in Saudi Vision 2030, showcasing its influential global position. From Abdulaziz’s perspective, this presents an ideal opportunity to channel investments towards the Kingdom and engage in its transformative endeavours. “We believe that the Kingdom is experiencing substantial economic growth and progress, backed by the unwavering guidance and support of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, the Crown Prince and Prime Minister - May Allah protect them,” concludes Abdulaziz. CBNME COVER 34 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
Oikos Atelier Dubai The Opus, Tower A, office 1205 Al A’amal St, Business Bay - Dubai T +971 4 589 3332 | M + 971 52 556 7376 atelierdubai@oikos.it | oikos.it Made in Italy Entrances Designed by You
What are your core values and guiding principles when shaping your projects? Our projects manifest the OMNIYAT vision, which is dedicated to consistently crafting unique properties and elevating the exceptional to create ultimate uber-luxury living experiences. Our guiding principles centre around design, innovation, and creativity, as we aim to develop projects beyond quality and rarity for those who will inhabit them. This commitment is exemplified in projects like The Lana, One at Palm Jumeirah, Ava at Palm Jumeirah, The Opus, ORLA Collection, VELA & VELA VIENTO, and will persist in our future projects. This vision has driven us to work with the best architects and partners in the world, from Zaha Hadid to Foster + Partners and Dorchester Collection, to name a few. My objective has been to inspire them to join us in the quest for building and creating the exceptional. Ultimately, our core values and guiding principles aspire to establish a standard of excellence in every project we undertake. We create spaces that meet today’s needs and shape the future as we continuously elevate and go beyond to inspire the city. What are some of your most iconic projects and their unique features? All OMNIYAT projects are considered iconic, defining our distinct position in the industry. What sets us apart is THE PINNACLE OF OPULENCE Mahdi Amjad, Chairman and CEO of OMNIYAT shares more about his plans for 2024, the launch of VELA Viento, and his take on PropTech and smart buildings… MAHDI AMJAD, Chairman and CEO of OMNIYAT 36 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
the emphasis on the individual identity for each property, all contributing to a larger vision that pushes boundaries and achieves new milestones. Currently, The Lana project is an impressive achievement set to inspire the entire region, hosting the 10th Dorchester Collection hotel worldwide and the first in Asia and the Middle East. With 39 exclusive residential units, The Lana promises a unique living experience. The design, achieved after working with multiple design firms over two years, reflects the modern design language of Foster + Partners and the values of Dorchester Collections’ aspirations and philosophy. The success of this project prepares us to continue pushing the boundaries of architecture, design, and service quality, aiming to create a living experience that only the discerning few values. How has OMNIYAT navigated the recent economic and market fluctuations in 2023? Despite the recent fluctuations experienced by the market, OMNIYAT was able to consistently grow its portfolio and deliver on its vision, presenting new destinations and achieving record numbers that contributed to maintaining the city’s leading position relative to other markets. Can you talk more about the VELA Viento launch and how it is different from the rest of the projects? The VELA VIENTO launch marks a significant milestone in the continuous development of Marasi Bay but also sets itself apart from other projects, including its sister property, VELA. This project presents our overarching vision shared with VELA and The Lana, which, through the Marasi Bay waterfront promenade, creates a connection with nature through landscaped gardens and communal areas, introducing a new dimension to urban living. VELA VIENTO will be crowned by two four-bedroom penthouses and three signature duplex apartments with a distinctive concept that captures the idea of “living in THE PINNACLE OF OPULENCE CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 37
CBNME PROPTECH the sky.” The architectural characteristics of the spaces and bridges between the property’s two towers meet to create an ‘in the sky’ residential experience. This places our vision of innovation at the heart of design, complementing the living spaces that distinguish VELA VIENTO from other projects and offering residents a unique and elevated lifestyle. How are you embracing emerging trends like PropTech and smart buildings? We actively embrace emerging PropTech trends and smart building technologies to enhance our customers’ experiences and streamline operations. We closely track the latest smart building innovations and evaluate how they can be integrated into our developments to create more innovative, efficient, and enjoyable spaces. For example, our projects have implemented advanced Building Management and Lighting Control Systems that enable remote monitoring, improved HVAC, lighting efficiency controls and energy savings. PropTech and smart buildings will remain key priorities as we develop new landmark masterpieces. By embracing these trends early on, we aim to provide our clients with intelligent, connected, technologically advanced living and working environments. Can you elaborate on your commitment to sustainability and responsible development? We are deeply committed to incorporating sustainability and responsible development practices. We strive to set new benchmarks in environmental performance and human well-being through high ratings in leading certification frameworks. Our initiatives to ensure a sustainable future include conducting detailed operational carbon modelling for all of our future projects, innovating our design, and building assessment processes and all-electric building where feasible to achieve operational net zero carbon for all of our new-build assets by 2030, and ultimately, net zero for the whole life cycle by 2050. Ultimately, our goal is to provide unparalleled, limitless uber-luxury experiences that integrate sustainable practices and solutions that, in turn, elevate the living experience. We aim to develop a global showcase for how the world’s most ambitious sustainability goals and human-centric wellness targets can converge in a single architectural landmark. It represents our steadfast commitment to pushing boundaries in responsible development. What is your vision for the future of the real estate landscape in Dubai and beyond? In Dubai and beyond, I see a future where real estate goes beyond conventional boundaries, as there will always be a demand for the highest levels of luxury and what can be done to achieve that. Therefore, we aim to be at the forefront of what defines uber-luxury living, and we will continue to reach unprecedented levels, influencing our clientele’s desires and aspirational expectations. OMNIYAT will strive to contribute to setting these heightened expectations, embarking on each project to ensure that each one achieves its own distinct and unique identity. 38 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
THE PINNACLE OF OPULENCE What advice would you give to aspiring developers or entrepreneurs in the region? One key to success is maintaining a future- focused mindset. Looking five or ten years into the future and observing current trends to identify potential opportunities that may serve you later allows you to remain one step ahead. It is also essential to remember that people are at the heart of what we do as curators of living spaces. This necessitates that, above all else, the spaces we design must serve to make their inhabitants feel well-adjusted and acclimated beyond aesthetic beauty. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 39
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CONSTRUCTION FRONTIERS T he KSA Construction Innovation Awards 2024 winners were announced on March 4, 2024, at Voco Riyadh. The event was hosted by Construction Business News Middle East and BNC Publishing. Especially now, the Saudi Arabia’s construction industry is experiencing steady growth due to government initiatives, significant projects, and investments in infrastructure and real estate. The Vision 2030 initiative, initiated in 2016, aims to reduce reliance on oil by diversifying the nation’s economy. As a result, substantial funds have been allocated to housing, energy, and transportation infrastructure projects. The Saudi government has also implemented various measures to support the construction sector, including funding programs, regulatory reforms, and incentives to promote local employment and manufacturing. The Construction Innovation KSA Awards 2024, held in Riyadh, honoured companies and initiatives for their significant contributions to the region’s progress in the industry. The awards recognised some of the area’s most successful initiatives, businesses, and individuals. We would also like to give a special shout-out to our Gold Partner, Numai Real Estate, for joining forces with us to pull off this event successfully. Once again, congratulations to all the winners for their contributions to the advancement of the construction industry. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 41
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MAY 16 DUBAI | VENUE: TBC NOMINATE NOW AWARDS MEP CBNME 2024 RECOGNISING THE GAME CHANGERS IN THE REGION’S MEP INDUSTRY FOR EDITORIAL VIBHA MEHTA +971 58 6314145 vibha@bncpublishing.net FOR SPONSORSHIP OPPORTUNITIES ALEX BROWN +971 56 308 2946 alex@bncpublishing.net JOAQUIM D’COSTA +971 50 440 2706 jo@bncpublishing.net
2024 EDUCATION PROJECT OF THE YEAR ADMINISTRATION FACILITIES - SABAH AL-SALEM UNIVERSITY CITY – KUWAIT UNIVERSITY, CHINA STATE CONSTRUCTION ENGINEERING CORPORATION (CSCEC) T his project is one of the magnificent project deliveries in the region. Based on the contract documents, the project’s value is determined by how well it fulfils its intended design and function. This has been successfully achieved by the ADFA project team, meeting the authority requirements and the client’s expectations and returning value to the provided service. Additionally, the delivery of the project as per the Master Programme was vital for the value creation of the project to the clients, followed by all other stakeholders. Hence, the project management effectively took steps to ensure the project progress was closely monitored and controlled by a detailed schedule. Last but not least, the quality, which is also one of the most critical parameters, was successfully delivered in line with the client’s requirements. 44 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
2024 INFRASTRUCTURE PROJECT OF THE YEAR MASAR, KING ABDULAZIZ ROAD PROJECT, KEO INTERNATIONAL CONSULTANTS T his historic project, which spans 205 urban plots and is roughly 3.65 km long and 320 metres wide, will completely alter Mecca’s appearance. Our winner has been providing overall project management services, including planning, scheduling, budgeting, and quality control. They also coordinate the work of the various consultants and contractors involved in the project. The winner’s role as a project management consultant (PMC) has been crucial to the mega-project’s critical success. Due to the project’s circumstances and the number of stakeholders involved, the deadline was extended to November 2023. At the time of this award entry, the project was about 98% finished, with many road and infrastructure deliveries successfully completed, opened, and put to use. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 45
2024 HOSPITALITY PROJECT OF THE YEAR DOUBLETREE HILTON, JEDDAH, KSA, KPM ENGINEERING T he winner is the structural consultant for the hospitality project category, a USD151 million, 1-million-square-foot hotel in Jeddah, KSA. Situated in a prime location close to King Abdullah bin Abdul-Aziz Square, the hotel overlooks the Red Sea and is 20 minutes from Jeddah’s international airport. They commenced engineering services for the project in 2019, and the hotel is expected to open in 2025. Currently, 50 per cent of all early works have been completed. Completing the project will enhance the area’s value by increasing the number of tourists and the economic and developmental infrastructure of the region. The project’s architectural design of its structural core is unconventional to the building profile. Since it is an L-shaped structure, the winner was tasked with producing a structural design that conformed to the architectural and interior design intent. 46 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
2024 MEGA PROJECT OF THE YEAR SPORTS BOULEVARD FOUNDATION, THE SPORTS BOULEVARD T his mega project in Riyadh was launched by The Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, with His Royal Highness, Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Prime Minister, and Chairman of the Sports Boulevard Board of Directors on March 19th, 2019. The project is expected to be one of the world’s most significant urban development projects, contributing to the Kingdom’s ambitious Saudi Vision 2030 and Quality of Life Programmes to make Riyadh one of the world’s top 10 most liveable cities. It is set to deliver one of the lasting changes for Riyadh, connecting the city from West to East and people to places and opportunities. It will offer a world-renowned destination for residents and visitors and a new regional sports and wellbeing era. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 47
2024 BEST INNOVATIVE PROJECT OF THE YEAR DIRIYAH GATE PLANNING AND LOGISTICS, KEO INTERNATIONAL CONSULTANTS S ituated on a UNESCO World Heritage Site, Diriyah is a culturally significant place rich in history and tradition. The Kingdom’s goal was to establish Diriyah as a popular tourist destination worldwide, and the construction of the Diriyah Gate was required. Diriyah Gate, which is expected to cost USD 63 billion, will have many parks, gardens, and green areas that will not only provide recreational areas but also help improve the air quality. The highly commened’s team is managing the construction of all these assets over a vast project site that is more than 9.3 square kilometres in size with potential to grow to 14 square kilometres in the future. Highly commended 48 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
2024 BEST INNOVATIVE PROJECT OF THE YEAR BI-19 PROJECTS CONTROL SOLUTION, SAUDI ARAMCO T o track and monitor BI-19 projects, NAF&PMD created and implemented the first internal NAOO BI-19 Dashboard and Project Control in 2023. The dashboard, which serves as a one- stop shop for all information related to BI-19 projects, uses PowerBi to give users rapid access to all project details, financial documents, reports, Specific Instruction Manuals (SIM), and General Instructions (GI). The dashboard was created and released to enhance NAOO BI-19 Performance and guarantee a methodical approach to monitoring each project’s advancement. Additionally, management and coordinators are notified of areas that require improvement methodically so that corrective action can be taken. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 49
2024 SUSTAINABLE INITIATIVE OF THE YEAR NESMA & PARTNERS T his past year was another remarkable year to be added to the winner’s 42-year legacy as a proud Saudi company with many accomplishments that support the sustainable development of its community and economy. They were one of 4 local companies in the construction that the Saudi Public Investment Fund (PIF) invested in, and they announced their strategic acquisition of Kent, a leading global engineering and project management firm in the energy sector. They prioritize using recycled or locally sourced materials, minimize waste generation, and employ sustainable construction techniques like prefabrication to reduce on-site environmental impact. Additionally, they aim to achieve green building certifications like LEED (Leadership in Energy and Environmental Design) for their projects, ensuring the buildings are designed, constructed, and operated with sustainability principles. 50 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
2024 CONSULTANCY OF THE YEAR ATKINSRÉALIS B y pursuing a growth strategy that prioritises customer needs and continuously invests in their workforce and resources, the winner is ideally positioned to optimise client value and create enduring positive influence worldwide. Their accomplishments in the region over the last year further prove their goal to use engineering creativity to push the limits of human potential. Furthermore, the company’s regional business strategy is integrated into its mission to engineer a better future for the earth and its inhabitants. This mission includes generating superior value creation and financial returns, maintaining a sustainable competitive edge, and facilitating long-lasting and beneficial effects on the environment, its people, its clients, and society. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 51
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2024 BEST INNOVATION IN CONSTRUCTION EGIS S ituated in the Al Hamra district of Riyadh, the Seven’s Entertainment Complex, Al Hamra Entertainment Complex (Exit-10) covers a sizable 91,564m2. Our winner concentrates on the design and construction phases of the Exit -10 Development project; the strategic application of Building Information Modelling (BIM) has been essential in managing the project’s inherent complexity and resolving particular issues. Furthermore, the company’s dedication to BIM has been essential in developing a creative and cooperative culture that significantly promotes project success. Leadership has actively promoted BIM approaches as a game-changing tool for project delivery. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 53
2024 MEP CONTRACTOR OF THE YEAR ABDULAZIZ ALHAJAJ CONTRACTING T he winner is a reputable, well-established business with a long track record of accomplishments in Saudi Arabia’s telecom and construction sectors. Since its founding in 1978, the company has worked on various projects, including infrastructure projects, telecommunications networks, ministry offices, and shopping centres. Additionally, the business has earned ISO 9001:2015 certification, demonstrating its dedication to excellence and client satisfaction. Regarding market share and profitability, they also hope to rank among Saudi Arabia’s top contractors and create cutting-edge technologies and creative solutions for the telecom and building sectors. 54 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
2024 CONTRACTOR OF THE YEAR ALEC ENGINEERING & CONTRACTING LLC T he highly commended operations have matured in Dubai, Abu Dhabi and Riyadh. In the last 20 years the company has grown very positively. Every year, the company’s order book demonstrates its growth. They have recently been awarded three significant projects: Qiddiya Water Theme Park, Qiddiya Speedpark & MISK ILMI Science Museum, all in KSA. A core value for the company is innovation, and through this, three companies have been added to its list of related businesses, offering clients a comprehensive range of services. Highly commended CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 55
2024 CONTRACTOR OF THE YEAR CHINA STATE CONSTRUCTION ENGINEERING CORPORATION (CSCEC) M aintaining a business in the face of constant shifts in supply and demand in the market is extremely difficult, but our winner has been able to adapt using very nimble and astute strategies. Since its founding, the company has secured more than AED 51 billion contracts, generating AED 36 billion in revenue. They have turned over projects worth AED 2.4 billion to the hospitality industry in the last 12 months. They received contracts worth more than AED 10 billion in 2022 from various sectors in the UAE and KSA (i.e. Residential, Data Centre and Infrastructure). In keeping with the company’s growth and sustainability goals, management has been focusing on improving employee expertise and offering a good working environment to the workers. 56 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
2024 CONSTRUCTION EXECUTIVE OF THE YEAR BOB HOPE, MANAGING DIRECTOR OF EGIS SAUDI ARABIA *This award was received on behalf of Egis team T he winner is known that exceptional leadership skills have been instrumental in driving EGIS’s development. and growth in Saudi Arabia. As the country’s Managing Director, he has demonstrated a remarkable ability to inspire and motivate his team, fostering a culture of excellence and innovation. He leads by example, encouraging his employees to reach their full potential and rewarding their hard work and dedication. Under his leadership, Saudi Arabia has become one of Egis’ largest markets outside of France, with a 30% increase in turnover in the last year and an integral part of the group’s global strategy as Egis brings its international expertise to the Kingdom. The recent acquisition of Omrania in Saudi Arabia further complements the purchase of U+A and has been added to the architecture portfolio of Egis alongside 10 Design, Weston Williamson, and SB Architects. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 57
CBNME AUTOMATION Exploring New Age Technologies like Robotics in Modern Construction Originally written by Dr. Yasemin Nielsen. Edited by Vibha Mehta TECH-INFUSED CONSTRUCTION DR YASEMIN NIELSEN, Associate Professor at Heriot-Watt University Dubai 58 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
TECH-INFUSED CONSTRUCTION T he Construction Global Market Report predicts the construction sector will continue to thrive and increase from USD 15,192.71 billion in 2023 to USD 15,971.45 billion in 2024, with a CAGR of 5.1 per cent. Given the continuous growth in real estate and infrastructure ventures, the sector is flourishing. This surge presents new challenges concerning cost, time, and quality, which can be effectively addressed by utilising innovative technologies and digital resources. Here, Dr Yasemin Nielsen, Associate Professor at Heriot-Watt University Dubai, shares her take on how the industry infuses technological transformations. Integrating robotics into the industry is on the rise, particularly in tasks such as concrete pouring, bricklaying, construction site safety, tying rebars, material and waste handling and demolition. According to Statista, a statistics portal, the global robotics market is expected to see substantial revenue growth, reaching approximately 38.24 billion USD by 2024. Robotic systems excel at executing repetitive tasks, reducing the reliance on labour and strengthening safety measures at construction sites. The adoption of industrial robots has revolutionised these sectors, delivering heightened efficiency, cost reduction, enhanced safety protocols, and superior product quality. Technological progress means that robots are evolving to be more adaptable, cooperative, and intelligent. Robotic arms are sufficiently versatile to execute various tasks, from welding to bricklaying, often surpassing human labour in precision. Integrating robotic arms into construction processes brings forth many benefits, such as the ability to operate with exceptional accuracy with fewer errors and better overall project quality and efficiency. Exoskeletons, mechanical devices humans wear for specific applications, provide another innovative solution for safety and productivity. Exoskeletons designed to enhance physical capabilities can significantly reduce the risk of injuries among workers. For instance, power gloves assist individuals in grasping and holding materials and tools, effectively enhancing grip strength and dexterity. Back support exoskeletons play a crucial role in activities involving lifting, bending, and reaching, and by redistribution of weights from shoulders and arms, they directly address the common concerns in the back strain and injury sector. By promoting proper posture and alleviating back pressure, they safeguard back health and indirectly support the well-being of arm, neck, and leg muscles. Arm and shoulder support exoskeletons cater mainly to contractors engaged in overhead work, such as electricians and drywallers. The construction industry has unique challenges that can delay the adoption of modern technologies, thereby diminishing potential benefits. Factors such as implementation costs, limited awareness, and a shortage of skilled resources pose significant obstacles. Moreover, construction projects have ever-changing stakeholders and demanding timeframes, increasing the complexities of technology integration. Misapplications of technology and a lack of expertise can lead to project delays. Despite the push for digital transformation initiatives by regional governments, some developers still need to be more open to embracing modern construction technologies due to perceived time risks. However, proactive risk management can mitigate these concerns. While developers are increasingly inclined to invest in technology, spurred by government mandates and the desire to lead in digital innovation, success is only guaranteed with a well-defined digital strategy. Withogy implementation may yield limited benefits or even failures without proper movement and calendar objectives. Establishing transparent expectations and executing value-driven implementation strategies are essential to accomplishing the desired outcomes. While Industry 4.0 is still being developed and implemented. Industry 5.0 has already emerged in several sectors, including construction. Industry 5 focuses on social fairness and sustainability principles, which need to be more noticed by Industry 4.0’s emphasis on digitalisation and AI. Industry 5.0 can bring back the human force to factories and promote more skilled jobs by replacing the limited machine– human interaction in the Industry 4.0 context with highly collaborative, adaptable and personalised scenarios. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 59
CBNME INVESTMENTS N ew research by Barratt London, conducted by YouGov as part of a survey of 1,000 adults, has revealed the most important factors to consider when deciding on a London property location. This provides valuable insights for GCC property investors seeking opportunities in the UK Capital. Topping the list was proximity to London’s extensive transport system, which was the top priority across all age groups. This was followed by access to local amenities, with 64% of survey respondents highlighting the importance of being in close proximity to local amenities, including shops, leisure facilities, and restaurants. Green spaces ranked among the top three preferences, with 50% choosing this as a critical factor. The results were divided when respondents were asked about their preferred London zone. Zone 3 came out on top (14%), followed closely by Zone 2 (13%) and then Zone 5 (11%). Perhaps unsurprisingly, the results showed a correlation between age bracket and borough, with those aged 18-44 preferring Zones 2 and 3, whilst those aged 45+ opted for Zones 4 and 5, which are situated slightly further away from the hustle and bustle of the city. Stuart Leslie, International Sales and Marketing Director at Barratt London, comments: “Choosing to purchase a home overseas can be an exciting journey and with Barratt London’s support, buyers can easily find the best investment and lifestyle locations in the Recent research highlights essential aspects for GCC investors to evaluate when purchasing property in London KEY CONSIDERATIONS FOR GCC INVESTORS IN LONDON PROPERTY STUART LESLIE, International Sales and Marketing Director at Barratt London 60 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
KEY CONSIDERATIONS FOR GCC INVESTORS IN LONDON PROPERTY Capital. This study has revealed some interesting insights into key elements that GCC investors should consider. Convenient access to transport links and proximity to amenities and green spaces emerge as top priorities in the Capital’s property market. “Barratt London developments such as Wembley Park Gardens and Sterling Place cater to the current market trends, offering convenience, community and quality living. With options across Zones 2 to 5, including regeneration areas like Hendon and Hayes Village, Barratt London ensures that every buyer finds the perfect London property.” For those seeking an easy commute, Barratt London and Transport for London’s (TFL) joint development Wembley Park Gardens is located next to Wembley Park tube station, which connects residents to the popular Jubilee and Metropolitan lines. Wembley Park Gardens is a new landmark development in the heart of North-West London’s iconic cultural hotspot. The 21-storey development offers 454 new, energy-efficient, one- and two-bedroom apartments with outstanding views across the Wembley skyline. Sterling Place, a collection of recently launched homes in New Malden, fits the bill for those looking for retail and leisure on the doorstep, with the homes located next to a Tesco superstore and a David Lloyd Club, one of Europe’s leading health and wellness groups. The area also provides access to London in under 30 minutes and is a throw away from Royal Parks and the Surrey Hills – a designated— Area of Oustanding NOutstandinguty (AONB). According to estimates, investors in Sterling Place can expect 29% capital growth in the next five years, with 1, 2 and 3-bone, two, and three- bedroomable. South of the river in Wandsworth, Barratt London recently marked the official opening of a new 32-acre public park in Springfield Place. Located in Tooting Bec, one of southwest London’s most desirable property hotspots, Springfield Place offers a collection of one-, two- and three-bedroom apartments and houses. It has excellent transport links and access to local amenities, including Michelin-starred restaurant Chez Bruce. A combination of attractive property prices per square foot, particularly in regeneration areas such as Hendon and Hayes, where Barratt London’s Hendon Waterside and Hayes Village developments can be found, coupled with significant infrastructure investments such as Crossrail and the Superloop, mean Zone 3 and beyond are far more accessible than they were a decade ago. Offering one-, two-, and three- bedroom new homes, Hendon Waterside is 19 minutes to St Pancras International train station and Hayes Village. It is just a 9-minute walk from Hayes and Harlington Station, which offers faster rail connections within many zone 2 locations. Barratt London offers an exceptional portfolio of homes across the Capital. A leading housebuilder in quality and construction, Barrat London creates homes built to last in great locations. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 61
B uilt on a heritage of more than 150 years, family- owned Austrian formwork multinational Doka has developed and expanded its value proposition to include specialised engineering services, scaffolding, and state-of-the-art products and systems that save time and money while striving towards a net zero future. Present in 178 locations worldwide, across 60 countries and five continents, Doka’s 6,800+ team members work together to yield optimal results for some of the world’s most recognisable structures. By working in partnership with an extensive list of main contractors, consultants, subcontractors, and developers, Doka’s quality and professionalism have seen it deliver on projects including the Burj Al Arab and Burj Khalifa, through to the Metro Riyadh and Doha’s Katara Towers. Global Reach, Enhanced Capabilities By acquiring a significant stake in AT-PAC, a prominent American scaffolding manufacturer, Doka amplified its global presence through a strategic move that opened its services to new customer segments. Through its strategic partnership, Doka became a single source for formwork and scaffolding, thereby streamlining construction site solutions while AT-PAC’s established expertise in the industrial sector, particularly hydropower, chemical, and mining industries, complemented Doka’s existing strengths. Doka has achieved another Doka expands its global reach and sustainability commitments QUALITY DELIVERABLES CBNME SUPPLIER 62 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
QUALITY DELIVERABLES significant milestone in its strategic growth plan with its recent acquisition of Malay-based MFE Formwork Technology, the market leader in monolithic aluminium formwork. MFE’s ability to deliver on less complex projects with repetitive geometric requirements has added a valuable dimension to Doka’s unique one-stop-shop product portfolio. A Sustainable Commitment Doka’s dedication to sustainability extends beyond offering high-quality formwork solutions. It recognises the environmental impact of construction projects and continuously strives to minimise its footprint. As outlined by Julia Weber, Head of Sustainability, Doka aims to be a driving force for sustainable practices within the construction industry and lead by example with its ambitious goal of achieving net zero emissions by 2040. Doka actively implements strategies to reduce the carbon footprint throughout its product lifecycle and provides customers insight into the greenhouse gas emissions of more than 7,000 Doka products over the relevant life cycle phases. This allows customers to compare the carbon footprints of Doka’s products to make informed and environmentally responsible decisions. By prioritising sustainability, Doka demonstrates its commitment to responsible business practices and environmental stewardship. Julia Weber adds, “Sustainability is a strategic advantage in the long term, and we are already seeing the first results in the market due to our status as a front-runner.” Innovation Investment Doka’s position as a global leader in formwork innovation stems from its commitment to developing solutions that address the evolving needs of complex construction projects. A prime example is its Concremote system, a digital sensor technology that uses real-time data to monitor concrete maturity, allowing for optimised formwork stripping times and improved construction schedules. Beyond products, Doka fosters a culture of innovation. By combining cutting-edge formwork systems with in-house engineering expertise, Doka ensures that each project benefits from tailored solutions prioritising safety and efficiency. Reaching New Heights Thanks to its extensive experience on some of the world’s most complicated engineering projects, Doka remains one of the few experts in delivering super- tall high rises. Azizi Developments recently awarded Doka the formwork solution for the second tallest tower in the world, so Doka’s expertise will once again be called upon to deliver this extraordinary project. By drawing upon its extensive engineering expertise, Doka can provide a safe and efficient construction schedule while leveraging its global network to ensure logistical efficiency. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 63
CBNME EXHIBITION T he 20th International Property Show (IPS), which lasted three days until February 29th, 2024, featured 125 local and international exhibitors. It served as a platform for exchanging experiences, showcasing the latest projects, and exploring promising investment opportunities within the real estate sector. Furthermore, prominent local and international real estate developers enthusiastically participated in the event, with notable representation from GCC nations. Participants included The Sustainable City, Yiti from Oman (the exhibition’s strategic partner), Emirates Real Estate Solutions (ERES), Al Rasikhoon Real Estate, the Real Estate Regulatory Authority, and the Ministry of Municipal and Rural Affairs from Saudi Arabia. Top of Form IPS 2024 has concluded with remarkable success. Could you share your reflections on the event and its impact? IPS 2024 exceeded our expectations regarding attendance, engagement, and the quality of discussions. The event served as a dynamic platform for industry leaders, innovators, and stakeholders to come together, exchange ideas, and shape the future of global real estate. Over 16,000 visitors from 124 countries attended, a record number that underscores the event’s international significance. Speaking with Dawood Al Shezawi, President of the International Property Show (IPS), he discusses the achievements of this year’s event in Dubai INTERNATIONAL PROPERTY SHOW 2024 64 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM
INTERNATIONAL PROPERTY SHOW 2024 Could you elaborate on some key topics and discussions at IPS 2024? IPS 2024 featured discussions and panels covering multiple aspects of the real estate industry. Some of the key topics included are the impact of artificial intelligence (AI) on real estate marketing, the significance of education in international transactions, sustainable development practices, emerging trends in property technology (PropTech), and the future of urban planning. These discussions gave attendees valuable insights into current challenges and opportunities shaping the industry and stimulated meaningful dialogue among industry professionals and thought leaders. The IPS Startup Pitch Competition was a highlight of the event. Can you tell us more about its significance and the winning startups? The IPS Startup Pitch Competition was an exciting opportunity for innovative startups to showcase their ‘PropTech’ ideas and solutions to industry experts. Proscan, the competition winner, impressed the judges with its groundbreaking construction software for safety and quality. We believe supporting such startups is crucial for driving innovation and progress in the real estate sector. What sets IPS apart from other real estate exhibitions, and how do you plan to enhance its value in the future? IPS stands out for its comprehensive approach, bringing together diverse stakeholders, from developers and investors to policymakers and technology innovators. Moving forward, we aim to further enhance IPS’s value by expanding its global reach, fostering collaboration, and staying at the forefront of industry trends and advancements. We strive to ensure that IPS remains the premier platform for driving innovation and growth in the real estate sector. Could you share some insights into the experiences of exhibitors at IPS 2024? The feedback from exhibitors has been overwhelmingly positive. Many expressed satisfaction with the quality and quantity of visitors, highlighting the event as an excellent platform for showcasing their offerings and networking with industry peers. Exhibitors noted significant interest from visitors, with promising leads and potential deals on the horizon. Additionally, exhibitors appreciated the diverse range of activities and panels offered, which added value to their participation and facilitated meaningful engagement with attendees. Overall, exhibitors found IPS 2024 a rewarding and fruitful experience, reaffirming its status as a premier real estate exhibition. With such success this year, what can attendees and stakeholders anticipate for IPS 2025? IPS 2025 will build upon this year’s achievements and aim to offer an even more enriching and transformative experience. We are committed to pushing the boundaries further, providing unparalleled networking opportunities, and addressing the industry’s most pressing challenges. Expect insightful discussions, innovative technologies, and strategic partnerships that will shape the future of real estate. IPS is committed to driving positive change in the real estate industry, and we are excited about the opportunities that lie ahead. CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 | 65
CBNME REVIEW R eal estate transactions in Bahrain totalled 9,362 in Q4 2023, according to SLRB data. This marks an increase of 65.4% YOY and an increase of 82.0% QoQ compared to Q3 2023. However, Real estate transaction value is reported as BHD1.07bn, marking a 1.2% decrease in the same period last year. Looking at Bahrain’s office sector, rental rates remained stable in 2023, with Grade A rents sitting at BHD5.98 per sqm per month on average. Vacancy rates have stabilised, and a slight improvement has been seen based on growth in the workforce, reduced development, and new additions of Grade A properties to the market. Several new office buildings are scheduled to open in 2024, including Sayacorp Tower and Seef Boulevard. Should these openings go ahead as expected, the total supply of office space in Bahrain will increase by 1.1% in 2024. In the residential sector, average apartment sales rates across the Kingdom grew by 2.5% from 2022 to 2023. Overall, villa sales rates based on title deed area declined marginally by 0.44% YoY in 2023. In the rental market, mid to high-end quoted apartment rates fell by 1.7% in Q4 2023. Over the same period, mid to high-end villa rates remained relatively stable, witnessing only a marginal 0.1% decline. Within the hospitality sector, key performance indicators demonstrated improvement in 2023. STR Global’s data shows that average hotel occupancy in Manama was up by 5.1% compared to 2022. Over this period, although Manama’s ADR fell by 2.7% to an average of BHD61.0, its RevPAR increased by 1.9%. Bahrain performed similarly, with its occupancy rate rising by 4.4% and ADRs falling by 2.2%, resulting in RevPARs increasing by 2.1%. December saw the opening of Bahrain’s first Raffles property. The converted property, previously Al Areen Palace & Spa, offers 78 private pool villas ranging from one to three bedrooms plus five F&B outlets. CBRE’s biannual retail occupancy survey for H2 2023 showed marginal growth for the third consecutive period in the retail sector. H2 saw the average occupancy increase by 1.0 percentage points across CBRE’s 20 tracked malls in Bahrain. Average tracked rental rates declined by over 4% in 2023, and we anticipate that the increasing supply across all segments, from neighbourhood plazas to destination malls, will increase pressure on landlords to provide more competitive commercial terms in the coming period. Heather Longden, Director - Advisory & Transactions at CBRE in Bahrain, comments: “It is encouraging to see the increase in the volume of transactions for 2023, despite the decline in total value. While performance is generally muted across sectors, the residential apartment segment has seen an uptick in average sales rates achieved for 2023, which indicates the quality of supply that continues to be developed. Hotel performance has shown signs of further recovery with increased occupancy rates. We anticipate a challenging time ahead for the office and retail sectors. However, landlords will be able to provide quality products and services, with competitive commercial terms, to outperform.” CBRE releases Bahrain Real Estate Market Review Q4 2023, noting increased transactions but slight dip in total value BAHRAIN: ON A RISE 66 | CONSTRUCTION BUSINESS NEWS ME | APRIL 2024 WWW.CBNME.COM