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www.cbnme.com We design.. we construct.. we build.. Kingdom of Saudi Arabia, PO Box 65697 Riyadh 11566 Tel: +966 11 293 1193 Fax: +966 11 293 1170 www.albawani.net Classified Class 1 ISO 9001 THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS DK Sen from Larsen & Toubro Infra talks about the company's landmark projects in the Middle East Indian giant makes strides Nominations open for Construction Innovation Awards 2017 Experts discuss the current situation of the Saudi Arabia's construction market A visit to Volvo Trucks’ huge plant in Gothenburg AUGUDT 2017 THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS

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The SDLG operational service network covers more area than any other value brand manufacturer. Which means that, with our teams of highly trained technicians, you can rely on SDLG to keep your machines working and earning. When it’s time to think about buying a new machine, remember this name: SDLG. Go online to find your local SDLG dealer: www.sdlgme.com More service network. More dedicated technicians. Trust SDLG.

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construction business news me // August 2017 // www.cbnme.com 3 Ed Note News Appointments Comment RSG International highlights facts about landmark buildings Comment DSI’s Wael Allan explains how to keep clients and win contracts Cover Story L&T’s DK Sen talks about the Indian contractor’s regional projects Analysis KSA construction market faces a shaky future 8 10 18 20 22 24 28 // contents August 2017 // Issue #30 Keep up to date with all the latest news, features and much more on our website. www.cbnme.com On the web

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// construction business news me // August 2017 6 S U B S C R I B E subscriptions@bncpublishing.net CEO Wissam Younane wissam@bncpublishing.net Managing Director Walid Zok walid@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Diarmuid O'Malley dom@bncpublishing.net Group Sales Director Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 Editor Paromita Dey paromita@bncpublishing.net Editorial Intern Dhairya Negandhi Art Director Aaron Sutton aaron@bncpublishing.net Marketing Executive Mark Anthony Monzon mark@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Construction Business News ME contact sales@bncpublishing.net T +971 55 339 5097 All rights reserved © 2015. Opinions expressed are solely those of the contributors. Construction Business News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Construction Business News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Construction Business News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by International Printing Press www.ippuae.com Interview Adam Fleming from ANGE talks about procurement Case Study Mapei discusses its scope on work for Saudi Arabia’s KAPSARC CIA 2017 Nominations open for Construction Innovation Awards 2017 Supplier News Editor’s Pick 32 36 40 66 68

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construction business news me // August 2017 // www.cbnme.com 7 Leaders in Project Management Inspiring Innovative Leadership www.hillintl.com

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// construction business news me // August 2017 8 // Editor's note Real estate heading to? O ne of the most important ques- tions that constantly keeps on popping up is that where is the real estate market in Dubai head- ing to. With an array of real estate projects under construction in the region and the glitz and glamour associated with each of them, the sector looks promising for the coming term. According to JLL’s recent report on the emirate’s real estate market, it remained rela- tively subdued with little changes in the prices or rentals recorded during the second quarter of the year. But despite the above, it also sug- gested that the residential sector continues to see additional units entering the market, tak- ing the overall stock to 480,000 units. Only the Dubai residential market has around 78,000 units under construction and sched- uled for delivery by 2020. The underlying question remains the same; will this supply be in excess of the lev- el of demand, which can result in the units lying vacant for a considerable amount of time. The report further suggests that many of the units would be targeting international and local investors but the key challenge will remain in securing tenants and achieving good returns on investment. Experts are of the opinion that the market sentiment will pick up in the latter part of the year. For the time being, sale prices have stabilised, which might be an indication that the down cycle is nearing an end. It will also depend on the actual number of units being delivered in the remaining 2017. But as of now, it still remains a wait and watch game for the investors to invest their money cautiously in the property market so that they can command healthy returns when the right time comes. editor’s note Paromita Dey Editor paromita@bncpublishing.net @paromitadey1 linkedin.com/in/paromita-dey

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Delivering National Pride The United Arab Emirates Pavilion at EXPO 2015 in Milan, designed by the world-famous architecture studio Foster +Partners, takes its inspiration from the desert landscape and the highly innovative and futuristic ���������������������������������������������������������������������������� be relocated to the UAE. After a successful delivery in Milan, the Pavilion has been distmantled and relocated to Masdar City. Now, we are working on the ultimate reconstruction of the Pavilion, to showcase sustainability projects embracing UAE’s National Pride. We are very proud to be a part of this ambitious mission. www.cimolairimond.me | info@cimolairimond.me For the past decade, we’ve provided integrated turnkey construction services for highly challeging and complex projects to make our Clients‘ vision a reality.

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// construction business news me // August 2017 10 For News, features and more, Visit www.CBNme.com Follow us on twitter for breaking news: @cbn_ME Follow us on Facebook for up-to-the-minute breaking news An update from around the region Real estate Update UAE-based business con- glomerate, Dubai Holding, unveiled AED5bn Emirates Towers Business Park, lo- cated between Sheikh Zayed Road and Happiness Street and near Dubai International Financial Centre (DIFC). Upon completion, Emirates Towers Business Park will be- come an integrated business district in the heart of Dubai’s financial district and will pro- vide a legislative environment with international standards of governance and transpar- ency under the regulations of the DIFC Authority. During the unveiling, Vice President and Prime Minis- ter of the UAE and Ruler of Dubai, HH Sheikh Moham- med bin Rashid Al Maktoum, said: “Dubai’s major real es- tate projects aim to enhance the emirate’s development across sectors, and enhance its readiness for the future as part of the comprehensive growth strategy of the UAE under the leadership of UAE President HH Sheikh Khalifa bin Zayed Al Nahyan. These projects represent the next phase of strategic develop- ment of infrastructure that is required for the UAE to meet its growth aspirations. These projects are helping the coun- try cement its position as a destination of choice for global investment. “The UAE is continuing its drive to enhance the envi- ronment for businesses and the private sector by provid- ing innovative solutions for investors’ needs, and create a platform in the UAE for businesses to access major emerging markets that to- gether have a population of over two billion people.” The development is the re- sult of mutual collaboration between Dubai Holding and DIFC in response to the in- creasing demand from inter- national corporations look- ing to set base in Dubai’s thriving business environ- ment. The emirate’s strate- gic location and advanced infrastructure present the ideal choice for companies looking to strengthen their presence in the region and expand their reach. Emirates Towers Business Park will meet the increasing demand for Grade A office space through hi- and low- rise office towers catering to a range of requirements. The development will include three five-star hotels. Jumeirah Group will man- age one, while the other two will be managed by lead- ing international hospitality groups. The development will also offer retail space with a range of international brands and food and beverage (F&B) options, and a dedicated are- na for events and ancillary fa- cilities to support corporates. The development will be in- terspersed with public parks, green space, and will include two covered pedestrian bridg- es connecting to the DIFC. To ensure ease of access across the development, Emir- ates Towers Business Park will be supported through a three-level basement with one level dedicated to traffic management, while the other two will provide 13,000 new parking spaces. Commenting on this launch, HE Abdulla Al Hab- bai, chairman of Dubai Holding, said: “This new de- velopment reflects the wise and ambitious vision of our leadership and is in line with Dubai’s strategy of devel- oping futuristic projects to meet the growing demand for integrated business dis- tricts and advanced legal infrastructure built on inter- national standards of gov- ernance and transparency. Emirates Towers Business Park demonstrates Dubai Holding’s commitment to the economic diversifica- tion of Dubai and strength- ening its attractiveness as a preferred destination for re- gional and international cor- porates looking to leverage the wealth of opportunities for growth and expansion.” HE Essa Kazim, governor of DIFC, said: “DIFC contin- ues to deliver on its ambitious plans to support the growth strategy of Dubai and the on- going economic development of the UAE. Our collabora- tion with Dubai Holding is a perfect example of this strat- egy in action. By extend- ing DIFC’s jurisdiction, the member companies of Emir- ates Towers Business Park will benefit from the centre’s robust legal and regulatory framework as well as its infra- structure that supports busi- ness growth throughout the MEASA region.” The location will also host the Museum of the Future, which offers laboratories for innovation in different sec- tors, including health, edu- cation, smart cities, energy, and transportation. Construc- tion on this latest addition to Dubai’s skyline will com- mence by the end of 2017 with completion aimed within four years. Dubai Holding unveils AED5bn Emirates Towers business district

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construction business news me // August 2017 // www.cbnme.com 11 Construction Two-tower residential proj- ect in Dubai’s Silicon Oasis, Ribbon of Light, designed by UAE-based Abdul Rahim Architectural Consultants (ARACO), is now more than 50% complete. Commenting on the project, ARACO general manager, Ra- him Banizaman Lari, said: “In terms of design and function, this project will be an iconic landmark in an important area of Dubai. We are delighted by the progress we have made to date and look forward to continuing our successful col- laboration with other project stakeholders over the coming weeks and months.” Covering a total construc- tion area of 1.1ha, the small- er of the two towers feature 238 studio apartments, three lifts, and a lobby. The larg- er of the two towers offers a combination of 240 one- bedroom apartments, 16 two-bedroom apartments, and 14 three-bedroom apart- Araco’s AED230mn project at Dubai Silicon Oasis near completion ments. The upper storeys will feature 30 penthouse units and the building will be serviced by six lifts across two lobbies. Across the en- tire development, 16 duplex apartments will be available. The ground floor units across both towers will pro- vide seven large leasable retail units with community facilities including two large swimming pools, two kids’ pools, two jacuzzis, and two large gymnasiums. The devel- opment will also feature 708 parking spaces.With sustain- ability in mind, both build- ings will be equipped with a chiller cooling system to reduce electricity consump- tion while maintaining opti- mum conditions for tenants and residents, compared to traditional air conditioning. In line with Dubai’s strict new fire safety codes, intro- duced earlier this year, the towers will also be fitted with the latest Civil Defense requirements, as well as a security system connected di- rectly to Dubai Police. Italian façade specialist, Zanetti, has been appointed to complete all façade, glass and cladding work, maintaining a high lev- el of quality throughout. Lari continued: “Both towers have been designed in a cylindrical shape to of- fer unrivaled views of the city skyline. This iconic structure, which will be visible for miles around is not only a landmark within Dubai Silicon Oasis, but will become a landmark development for Dubai, bringing new investment to a developing district in the emirate and adher- ing to Dubai’s strict new environmental, safety and fire regulations.” Working with project con- tractors Gulf Contracting Company (GCC) and project owners Ribbon of Light Trad- ing, ARACO has been ap- pointed as project consultant leading design – including ar- chitectural engineering, struc- tural engineering, and MEP Engineering in addition to supervision and maintenance. Refurbishment Five-star resort destination in Dubai, Atlantis, The Palm, will undertake a three-year refur- bishment program covering the resort’s 1,539 rooms and suites. The $100mn refurbishment is planned even as Atlantis, The Palm reported impressive results during the first five months of 2017, which saw occupancy levels of 93% on average, with an 11% increase year on year. The project will see 50 rooms and suites re- Atlantis The Palm to undergo $100mn refurbishment tures. The refurbishment will also extend to balcony areas as well as bathrooms, which will include the Greek Did- yma marble basins and free- standing bathtubs. Additionally, the all-day din- ing restaurant, Kaleidoscope, is currently under renovation and will see a new dynamic introduced when it re-opens in September 2017. Further projects planned are the re- design of Ayamna Bar, Nasimi Beach and The Imperial Club. furbished every six weeks, to ensure that guest experience will not be impacted, with completion benchmarked for 2019 just in time for the World Expo 2020. The interior design of the guestrooms was awarded to the UAE-based interior design studio, WA Interna- tional, whose design will be built by fit-out specialist Al Tayer Stocks, which has been awarded the strip out and re- furbishment of the 1,532 guest rooms, suites and corridors. The project will deliver a fresh look and feel, including contemporary carpet designs reminiscent of the turquoise and azure seas, with shades of coral bursting through the newly enhanced guest rooms, the company said. Integrated technology will also be acknowledged throughout with 49-inch flat screen televisions, proxim- ity reader key systems, and many more convenient fea-

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// NEWS // construction business news me // August 2017 12 Contract Dubai Electricity and Wa- ter Authority (Dewa) has awarded an AED46mn con- tract to UAE-based con- tracting firm, Dutco Balfour Beatty, for the develop- ment of the first phase of its new headquarters. Dutco Balfour Beatty won the deal after beating 10 international companies with the lowest bid, re- ported state news agency, Wam. The scope of work in Phase One includes shoring, dewatering, exca- vation, piling, fencing, and associated works. Al Sheraa will be the tallest, largest, and smartest govern- ment net zero energy build- ing (ZEB) in the world. It will have over 18.5ha, cover- ing over 1.8ha of land in the heart of the Cultural Village in Al Jadaf. The building will have 16,500 sqm of photo- voltaic solar panels on the roof to produce over 3,500 kilowatts (kW). The building will also include an addition- Dutco Balfour Beatty wins AED46mn contract to build Dewa HQ al 2,000 sqm of building-in- tegrated photovoltaic panels. The total renewable energy generated from the build- ing is over 5,800 megawatt hours (MWh) per year. The building will be completed and inaugurated in the last quarter of 2019. Saeed Mohammed Al Tayer, managing director and CEO of Dewa, said: “By building Al Sheraa, we establish a role model in Dubai and the world to achieve a balance between development and the en- vironment, to protect the right of future generations to live in a clean, healthy and safe environment. This supports the UAE Vision 2021 to make the UAE one of the best countries in the world, and the Dubai Plan 2021, to make Dubai the preferred place to live, work, and visit.” The design was inspired by the UAE’s traditional houses, where enclosed spaces over- look an open courtyard. To reduce heat in the open court- yard, a sail design is used to provide shaded areas. Natural light during the day will stream through specific openings in the sail, giving sufficient light without the associated heat. The courtyard features trees, planted areas, and plants with- in a sustainable environment. Projects Target Engineering Construc- tion Company, a wholly- owned subsidiary of Dubai's Arabtec Holding, has been awarded four projects amounting to AED289mn. The scope of projects cov- ers an array of specialisa- tions, which include coffer- dam removal and revetment construction in Western Re- gion; award-winning high- rise development in Dubai’s Business Bay; fabrication and Arabtec subsidiary bags four projects worth AED289mn mented: “We are pleased to announce the continuous success and efforts within the Group. Target, together with the group’s other operating entities, demonstrates our in- tegrated capabilities but also our core strength giving us the ability to pursue a broad range of projects. We con- tinue to focus on the UAE as our core market and are op- timistic about the outlook for the sector.” ties of delivering complex projects in the industrial oil and gas, social infrastructure, marine, and high-rise tower market sectors. Such awards demonstrate the growth of Target’s expertise and perfor- mance in the global market over the past four decades. We continue to strive to up- hold our market share in EPC and specialist projects.” Group chief executive of- ficer, Hamish Tyrwhitt, com- installation of duplex/SS pro- cess tanks in Taweelah Area; and EPC substation works (upgradation and replace- ment) on Das Island. Target Engineering chief executive officer, Chaouci Yassine, said: “Target Engi- neering, over the years, has developed a strong experi- enced workforce, solid finan- cial standing, and evolved into a key player within the region with core capabili- The courtyard will give occu- pants and visitors an outdoor feeling in an indoor setting, stated the report. The Dewa building will use the latest technologies including the Internet of Things (IoT), Big Data and Open Data, and Artificial Intelligence (AI). Robots will be used for cleaning and to provide security ser- vices. A smart app will alert the employees about the time they should leave their homes based on the traffic. The same app can be used to book parking spaces and meeting rooms. It can also be used by visitors to eas- ily reach the building and meeting rooms. The total energy used in the building in a year is equal to or less than that produced on site during that year. Dewa’s new headquar- ters is targeted to receive a platinum rating by LEED where platinum is the high- est certification, it added.

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construction business news me // August 2017 // www.cbnme.com 13 Retail Developer secures $142.74mn loan for mall construction Real estate developer, City- land Group, announced a major financing milestone for the $330mn retail proj- ect, Cityland Mall, from a consortium of banks con- sisting of Emirates NBD as the lead bank and Burgan Bank from Kuwait. The loan, which totals $142.74mn in value, will be utilised for covering the on- going project cost in terms of construction for Cityland Mall, scheduled for open- ing in 2018 in Dubai. Speaking on the occasion, Fahimuddin Sharfuddin, CEO and board member, Cityland Group, said: “Se- curing this term loan from Emirates NBD and Burgan Bank is a significant devel- opment and signifies their confidence in the overall concept of Cityland Mall and the capabilities of the group. With construction work well under way, in addition to having the commitment of leading regional retailers, we are pleased with the overall momentum on the project and look forward to being on track to hit our project milestones in order to open our doors to the public in 2018.” Salah Mohammed Amin, general manager – corporate banking group, Emirates NBD Bank, said: “We are delighted to be as- sociated with this project that is strategically located and look forward to its offi- cial unveiling in 2018. City- land Mall project is a fresh proposition that is expect- ed to stand out in Dubai’s existing retail landscape and become a sustain- able venture that generates stable revenues.” Ahmed Al Qassim, CEO, Emirates NBD Capital, said: “We are proud to be part of this landmark project which will be another addi- tion to Dubai’s retail offer- ing, reemphasising Dubai’s position as the top retail destination in the region.” On the occasion, Raed Al Haqhaq, deputy chief ex- ecutive officer-Kuwait of Burgan Bank, stated: “We are pleased to be part of this mega project, which is the world’s first ‘nature- inspired’ shopping des- tination in terms of both architecture and its an- choring role in providing a unique sensory experi- ence for shoppers. Burgan Bank continues to support its clients in fulfilling their Real estate developer, RAK Properties, delivered 157 luxury residential units at Bermuda Villas, its latest residential development in Mina Al Arab in Ras Al Khaimah. The villas, the latest edition to the company’s already diverse property portfolio, have been developed to help meet the growing demand for residential property in the northern emirate. Mina Al Arab represents a mix of recreational outlets and investment opportunities that ensure the future success of the project, which provides a mix of practical ame- nities and hospitality for both residents and visitors. Each of the 157 units at Bermuda Vil- las boasts supreme comfort and luxury. The residential townhouses and villas range in size from two to six bedrooms, with the larger units also offering driver and maids rooms, it stated. RAK Properties managing director and CEO, Mohamed Al Qadi, said: “The deliv- ery of Bermuda Villas not only marks a new beginning for the owners of these new properties, it also marks a signifi- cant milestone in our journey to provide quality residential units to help meet the growing demand for property in Ras Al Khaimah. We believe that the remark- able demand for these units reflects our clients’ confidence in our developments and proves our ability to fulfil our prom- ise to continue delivering luxury real estate products to the local market. “We pride ourselves on the fact that our developments cater to all tastes, and that we are able to provide diverse residential property options to meet any requirement. We view our clients as partners in our journey to success and we feel privileged that they choose our developments – some clients even invest in several of our offerings.” RAK Properties Delivers units milestones in executing their strategic projects that in turn enhances the de- velopment of communities across the region.” In terms of leasing ar- rangements, agreements are already in place with opera- tors for 30% of the leasable space available. Cityland Mall will eventually have 350 stores built around six continent-themed pavil- ions. Hypermarket and su- permarket chain, Carrefour, operated by Majid Al Fut- taim, will open a 9,290 sqm hypermarket in Cityland Mall while VOX Cinemas will also have a presence with a 10-screen complex providing a choice selec- tion of F&B options and signature concepts. Construction work on the 20.4ha mall complex is well under way and is being supervised by JLL as the project manager. Me- chanical, engineering, and plumbing (MEP) works are now in progress for all ar- eas. Cityland Mall will also feature a 1.8ha open-air garden called Central Park, which will be the epicen- tre of the mall in terms of both architecture and its anchoring role in provid- ing a sensory experience for shoppers. The focus has been on the critical ar- eas of the project that will house the hypermarket, family entertainment areas, and the foundations for the main feature of the mall, the circular timber arched walkway that surrounds the Central Park.

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// NEWS // construction business news me // August 2017 14 Technology Abu Dhabi UPC honoured for innovation Top 5 Web Stories The Abu Dhabi Urban Planning Council (UPC) has developed an ex- pert spatial team involving the use of geographic information system (GIS) mapping technology, and have sub- sequently beaten out 100,000 con- tenders worldwide for the Special Achievement in GIS (SAG) award that will be presented between July 10-14 at the 2017 Esri User Conference in San Diego, California. While the UPC undertakes a number of projects involving the utilisation of GIS mapping technology, they were primarily recognised due to the Smart Geoplanner Enterprise Spatial Portal. This internal web portal uses a mod- ern software to permit planners to streamline their arduous process. The portal allows planners to search, visu- ally identify, and track master plans and planning processes and regula- tions for any location or area. Esri president, Jack Dangermond, chose Dutco Balfour Beatty wins contract to build Dewa HQ Dubai-based real estate developer, Nakheel, opened the new Al Ittihad Park Station for the passengers using The Palm Monorail to have an easy access to Palm Jumeirah’s central park, thousands of residences, and the Golden Mile Galleria mall. Meraas announces significant progress for Ain Dubai New distributor appointed to CASE operation in Bahrain Atlantis The Palm to undergo $100mn refurbishment Office, hospitality markets hit by weakened economy 1 2 3 4 5 www.cbnme.com // Snapshot the UPC’s spatial portal as one winner out of 175 in a variety of categories, keeping in mind the criteria of inno- vative and intelligent applications of GIS technology. The award has led to the portal being ranked as one of the best practice sites using GIS technology, inclusive of ef- ficient planning. Since the UPC is a government entity that is tasked with Abu Dhabi’s urban environments and their future pros- perity, some of the most prominent plans in the region have involved the use of the spatial portal. HE Falah Al Ahbabi, director general of the UPC, said: “We pride ourselves on being a global leader in urban planning and that means we must embrace the lat- est technologies, such as GIS mapping and spatial data, to help our planners and partners deliver what is needed for the future of Abu Dhabi. It is fantastic for this to be recognised on a global scale.”

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construction business news me // August 2017 // www.cbnme.com 15 Real Estate Dubai-based real estate developer, Azizi Develop- ments, unveiled two new residential projects in Al Furjan, Azizi Berton and Azizi Pearl. Both seven-floor properties will feature a high number of studio apartments. Berton will comprise 245 units that consist of 191 studios, 40 one-bedroom, and 14 two- bedroom apartments. Pearl will feature a total of 260 units with 192 studios, 54 one-bedroom, and 14 two- bedroom apartments. Farhad Azizi, CEO of Azizi Developments, said: “With the monumental response to our previous projects Azizi Developments unveils two projects in Al Furjan in Al Furjan, Berton and Pearl are expected to attract more investors over the coming weeks.” The residential apartments in both Berton and Pearl will feature fully-fitted kitchens, high-quality European fin- ishes, and a muted colour palette with earthy tones. Azizi Berton and Azizi Pearl each have their own distinct design and stylish interior decoration, inspired by the Art Deco movement. Azizi added: “Witnessing the ongoing transformation of Al Furjan’s communities is a source of pride for our company as we always put the needs of our clients first. To that end, every stage of Berton’s and Pearl’s devel- opment receives the utmost care and expertise, guaran- teeing an architecturally and spatially-beautiful experi- ence that exceeds the expec- tations of our customers.” The upcoming residen- tial buildings in Al Furjan come in a diverse array of sizes with various floor plans ranging from 93 sqm to 186 sqm. The residences are due for handover by the second quarter of 2019. The developer has recent- ly handed over five of its Al Furjan residential projects, including Yasamine, Feir- ouz, Orchid, Liatris, and Iris. // Bitesize news Italian contractor, Saipem, has won $500mn contracts from Saudi Aramco for engineering, procurement, construction and installation (EPCI) activities at major offshore oilfields. Dubai-based property developer, Sobha Group, unveiled their latest offering, Hartland Estates Forest Villas, at Sobha Hartland. Villas in Sharjah have emerged as the standout performer in the emirate’s residential rental market in 2017, recording an 11.7% rise in rents during the first six months of the year. New supply in the apartment, villa, and commercial segments continued to place downward pressure on rental rates and sales prices, according to Asteco.

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// NEWS // construction business news me // August 2017 16 Meraas, the Dubai-based holding company behind the conception, development, and construction of the potential marvel Ain Dubai, has issued a statement, confirming the progression of the wheel past the halfway stage. Ain Dubai will be the tallest and longest observation wheel across the globe upon its completion. This project has the potential to become a beloved facet of the Dubai skyline and an iconic destination. The colossal structure will utilise 9,000 tonnes of steel, the statement said, which is nearly 25% more steel than was used in the construction of the Eiffel tower. The magnitude, scale, and luxury of Ain Dubai is encapsulated in the contents of its capsules, which are being manufac- tured by Hyundai. The capsules will be able to contain up to 40 people at a time. These spa- cious capsules have been contrived with the sole purpose of providing as much light and visibility to the observer in conjunction with an infal- lible sense of comfort. Some capsules could be converted into fine dining destinations that offer upscale service and could also contain a licensed bar for a unique experience. Abdulla Al Habbai, group chairman at Meraas, said: “Ain Dubai reflects our ambition of creating new desti- nations that contribute to HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, the vision of a city where people are encouraged to create, explore, and enjoy. The des- tination is designed to bring people together from around the world and will enhance Dubai’s reputation as a leading choice for business and lei- sure travellers. It also embodies the pioneering and innovative nature of a city that has pushed the boundaries of modern engineering.” Meraas announces significant progress for Ain Dubai Facilities management Beeah awards Sharjah landfill site contract to UK firm UK-based architectural firm, Foster + Partners has been awarded a major contract by Beeah, an environmental energy and waste management com- pany in the Middle East, to redevelop a principal landfill site in Sharjah. The masterplan is in anticipation of the landfill becoming redundant once the city reaches its ‘zero waste to land- fill’ target by 2020, said a statement from Beeah. Located in the Al Saj’ah district of Sharjah, the site is situated on a plot adjacent to the company’s headquarters and will be transformed to reflect Beeah’s vision of the world where clean energy is generated sus- tainably and utilised both sparingly and efficiently by employing innova- tive technology. Giles Robinson, senior partner at Fos- ter + Partners, said: “It is with a sense of excitement and anticipation that we are entering into a partnership agreement with Beeah as we have been deeply im- pressed by their vision to go far beyond what might be considered the standard transformation of a landfill site.” Khaled Al Huraimel, group CEO of Beeah, said: “The masterplan which will be developed by Foster + Partners will come to fruition as a direct result of Sharjah vigorously pursuing its target of becoming the first city in the Middle East to send zero waste to landfill. We are proud of the part we are playing in the creation of a sustainable and circular economy in Sharjah that has resource efficiency and environmental responsibility at its heart.”

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// construction business news me // August 2017 18 // Appointments The board of directors at Lars- en & Toubro (L&T) appointed SN Subrahmanyan as the com- pany’s new chief executive officer (CEO) and managing director (MD) with effect from July 1, 2017. He said: “This is indeed a high honour and immense responsibility. I am truly blessed and count myself very fortunate. L&T is a flag bearer for Indian industry and is the builder of the India of tomorrow. I look forward to jointly writing a new chapter for L&T along with our high calibre employees while en- suring that we continue to de- liver value to our stakeholders. I am humbled and at the same time excited and confident to be at this role in the compa- ny.” Subrahmanyan joined the construction business of L&T in 1984 as a project planning engineer after completing a degree in civil engineering and post-graduation in business management. He successfully helmed the contractor’s largest infrastructure projects includ- ing new airports in major cit- ies, metro, and freight corridor projects across India and ex- pansion of operations in inter- national geographies. Dubai-based contractor, Al Shafar General Contracting (ASGC), has appointed its first chief information officer (CIO), Herbert Fuchs, to drive the company’s digital transformation efforts. Based in Dubai, Fuchs will help lead the company in the adoption of new technologies that will add value to ASGC’s partners, customers, and employees. According to ASGC, the move is indicative of the sector’s increas- ing investments in technology-enabled processes. Bishoy Azmy, CEO of ASGC, said: “Every single industry will go through massive digital disruption over the next decade. If you want to survive and thrive, you need to transform. With Fuch’s considerable expertise, we look for- ward to entering the next phase of our company’s growth while driving efficiency through digitally- integrated processes.” Speaking on his appointment, Fuch said: “There is a significant development in the technology sector that can help ASGC and our partners to become more streamlined in their operations, enabling all divisions of the company to become more efficient. It is my pleasure to contribute to ASGC’s digital transformation in the years to come.” Dubai-based developer, Emaar Properties, ap- pointed Amit Jain as its new group chief executive officer (CEO), the company said in a brief disclo- sure to investors. Previously served as a chief op- erating officer, Jain assumed his position immedi- ately, the company said without going into further detail. He has been doing the job on an acting basis for more than a year since the previous CEO, Abdullah Lahej, left the company in April 2016. Jain was the head of finance at Dubai Bank for three years before moving to Emaar in 2006 as its group chief financing officer. Arcadis has promoted Dr Kamiran Ibrahim to CEO for its Middle East operations, replacing Graham Reid who departs for RES Group in the United Kingdom. Ibrahim is a civil engineer with over 30 years’ experience in business development and operations within contracting and consultancy firms across the Middle East, Africa, and Europe, with a proven ability to drive and implement operational success in large international organisations. He makes the step up from his current position as managing director – UAE and Oman at Arcadis. Following the Arcadis acquisition of Hyder Consulting in 2014, he assumed two regional roles at Arcadis. Speaking about his appointment, Ibrahim said: “I am passionate about leading multi- disciplinary teams to overcome clients’ business challenges, and I am committed to bringing the very best of Arcadis to our clients.” L&T names new CEO and MD ASGC appoints new CIO to drive digitisation Emaar names Amit Jain as its new group CEO Arcadis appoints CEO for its Middle East business Movers and shakers in the industry Appointments

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// construction business news me // August 2017 20 // Op-Ed Raj Sahni, owner and chairman at RSG International, highlights the factors that makes a regular property a landmark that is capable of attracting the right clientele Above the crowd W e explore the various factors that define and dis- tinguish a landmark. From the physical to the psycho- logical, a landmark is a product of perceptual and functional potentiality. As with any quest in life, a landmark must aim for excellence, be it experi- ential or functional. At the same time, it must be able to forge a bond with its visitors. In a nutshell, a landmark building is one that provides a perfect setting for the landmarks in people’s lives, thus becoming a part of their narrative. It is easy to gain momen- tary adulation but arduous to forge a permanent bond. That is the differ- ence between a house and a home, a property, and a landmark. Dubai has become synonymous with futuristic buildings, broad promenades, decadently luxurious hotels, and of course, its flourishing market. It is hard to believe that only one high-rise loomed over the city, the Dubai World Trade Centre, as early as 1979. The city was once known for being the principal port on the Gulf coast with pearling driving the economy. With the discovery of oil in 1966, Dubai found the resources to drive its ambitious projects. The city has been trans- formed, since then, with skyscrapers dotting the skyline, man-made islands for recreation, and of course, the tallest building in the world. Home to some of the most iconic structures in recent times, the city has become a tourist destination attracting the creme de la creme of the world. To say that it is modern is an understatement because it is a glimpse into the future. With solar powered skyscrapers and flood adap- tive buildings, the city is an archi- tect’s dream come true. With mega projects ranging from awe-inspiring to unbelievable, the city has it all. Architectural designs In a sea of buildings with both grace and value completing the iconography of the ever-changing skyline of Dubai, the distinction between a landmark and a property becomes tough to define. I believe that a landmark is visionary when it begins and a vision when it ends. Conventionally, a land- mark is a building of some historical or political importance, but properties become an icon through the con- sumer’s perception as well. It is not unusual for hotels, shopping cen- tres, and business centres to become landmarks around the world. Some buildings acquire that distinction based on their design alone; there is a certain fluidity to the design that makes us see such properties much more than as just a product of glass and steel. It can be dramatic lighting, unconventional balconies that differ on each floor, the colour of the building, and an asymmetrical architecture, that gives an illusion of movement. As builders, we understand that the design is the first thing that beckons the public as it serves as an invitation to explore. Proximity to tourist destinations It is not only the design that makes a building distinct, but there are also other factors in play as well. The In the present dynamic environment, with new and innovative structures coming up, it is the bond that will sustain the image of a building.”

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construction business news me // August 2017 // www.cbnme.com 21 because of your experience or the memories you create there is what will set it apart from others. The ex- periential and functional aspects must go in tandem to provide an experi- ence that is not just superficial. In the present dynamic environment, with new and innovative structures coming up, it is this bond that will sustain the image of a building. Quality of investments A sure way of determining if the building will have star value is when consultants and contractors, who are industry leaders themselves, associ- ate with the project. When you see such involvements at initial stages, it reflects that faith people have on the developer as well as his vision and this serves as a vote of confidence to its proposed status. Another facet to a building’s success is its clientele, namely the people who will become users of the space. As with any form of advertisement, association with a known entity always adds to the val- ue of the building. The more elusive the names, better it is for the image of the structure. While it is true that the aesthetics of a building are critical, sometimes what makes a building stand out is its uniqueness. The scale of the building can also be its most defining factor, the name of a building followed by su- perlatives such as largest, tallest, or the only can be a great selling factor. The fact that there is no other such build- ing in the world (or in that particular region) only adds to its exclusivity and intrigue, and in turn, attracts the right kind of clientele thus adding more value, and the cycle goes on till you have a building that has acquired the status of a landmark. It is expected that with builders and architects working tirelessly on creating the next big landmark and many projects being announced to add to the property market in the region, we can hope to see many structures that will force us to reconsider what makes a landmark. building’s location and its proxim- ity to other elements also contribute heavily into setting it apart from the others. Similarly, at times, the location of an existing landmark close to the property can be favourable in gen- erating a buzz about the building. In addition to this, some buildings also garner attention due to the people re- sponsible for it, a team with a history of building icons will have everyone’s attention on its next venture. The credibility of its property developers can also, thus, be an important aspect of the building’s reputation. The feel-good factor A different aspect of a property’s jour- ney to stardom includes its vibe. Sim- ply put, the vibe of a property is what the building means to each visitor and how they feel about it. It is crucial to ensure that your property has all the feel-good factors that entice the visi- tors. Each person who visits it will find a distinct attribute of it that they take back with themselves. Conversely, sometimes the buildings themselves are meant to convey a message. They are physical embodiments of a lifestyle and sometimes, of the vision of the builders or the owners. It is often seen that buildings by the same organisa- tion will have a unique trait that forms a part of all their ventures. It could be a recurring theme, element or design that makes their architectural structures instantly recognizable. The recall value helps the new structure leverage the brand of its predecessors to create an identity of its own. Not just a building Another psychological factor is the association that people form with a particular structure. A building that is all steel and glass will never acquire the status of a landmark. Rather, its impact on the lives of people and what the people take back from it will determine its value. This emotion of feeling connected to the building Dubai, UAE

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// construction business news me // August 2017 22 Wael Allan, CEO at Drake and Scull International (DSI), shares his philosophy about creating an organisational culture with high discipline to foster strong client relationships Building relationships L oyal and close relationships with business partners have many advantages. One is the ability to openly address problems and deliver hard truths when needed. But they also pose a risk when trust gets abused and becomes an excuse for lower expectations. A relationship-based culture People often say that conducting busi- ness in the Middle East was different in the past, and that a handshake was good enough. That is fair to say. However, the scale, complexity, and number of jobs have brought about fundamental changes. In a culture where relationships are so central to how business is conduct- ed, discipline plays an even greater role in order to avoid missteps and loss of control. In the early stages of a project, it is easy to get carried away with being positive, and only telling the client what they want to hear. At worst, it is explained by self-interested short-termism, whereby unrealistically optimistic projections and cost calcu- lations are made to win a contract. However, even more common is the notion that it is not deliberate, and based on genuinely naïve and good intentions. Nonetheless, both scenarios have the same consequences, which can be avoided if there is discipline at the outset. The reason there is a lot of failure in the contracting business is that lack of discipline is camouflaged by misconstruing client focus as flexibil- ity, and not having clear and pre- cise outlines and definitions in your communications. A common justifica- tion I hear for why a decision has been taken is that it makes the client happy, assuming it is what they want. These good intentions invariably re- sult in a dispute between both parties, characterised by escalating changes and variations. The cumulative effect on time, cost, and even quality in terms of risk is significant! When the client has all the informa- tion needed, they can take a proper decision as to what they want and need, with due consideration given to the opportunity costs involved. In order for this to work, it requires an accurate awareness of the situation in terms of the overall project, based on open lines of communication. This will result in immediate and undistorted feedback, so as to allow for any course corrections and tweaking of plans if need be. In other words, being in touch with reality, as well as the outlook and vi- sion of the client. There’s a saying that Take difficult decisions as early as possible so as to give you time to resolve the situation.” // Op-Ed

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construction business news me // August 2017 // www.cbnme.com 23 Some will rightly comment that this leads to conflict, and that is fine. The strength of a relationship is not revealed in the good times. It only becomes apparent when you encoun- ter difficulties, see things differently, and have to challenge each other by having disagreements. And you can- not fear this process. Sometimes it is messy, but in order to get important work done, it is necessary to piece together disparate parts, make course corrections, and decide on trade-offs along the way. How you handle conflict says a lot about how healthy your relationships are. In Arabic, we have a saying that you become good friends after you have a good quarrel. And if you live through it, these are the clients you want to be involved with; the ones you can have a difference of opinion with, work it out, and decide jointly how to move forward. Empathy and humility are key. Admitting your own mistakes is hard, and pride can break down even the best relationships. Creating an organisation that encourages people to do what is right, to be open about problems, and to take difficult decisions with a long-term perspective, translates into a highly-disciplined culture. All of this, of course, is more of an art than a science. In the end, what it boils down to is having the right people, who can handle the social aspects, and maintain professionalism in their work and judgments. “It’s not what you know that gets you in trouble. It is what you think you know that just ain’t so.” Sometimes it is the case that you do not have the necessary information to deal with a problem. At other times, the organisa- tion does have the necessary informa- tion at hand, but ignores it, which is just as bad. We recently met with a client and informed them about changes neces- sary at an early stage of their project. They asked why we needed to address this now, and make the work more complicated. We said we needed to set the scene and align ourselves from day one. To do this, you need to foster the right conditions, based on reciprocity, mutual benefit, and respect, whereby you acknowledge what each party brings to the table, and how valu- able and useful you are to each other. One-sided relationships will not last when things get tough. Merely liking a person and not having any expecta- tions is equally insufficient. When the necessary enabling conditions are in place, people will have the courage to address sensitive matters, which will help prevent problems further down the road. Where there is respect and trust, there is also an understanding of why this is necessary. It takes discipline to keep the long- term consequences of your actions front and centre, in order to be able to deal with problems as they arise, instead of delaying them. It means not playing with words such as saying you “don’t know when”, and say- ing “no” with conviction. You need to quantify and communicate costs and times and their impact on the project. Take difficult decisions as early as possible so as to give you time to resolve the situation. Putting your head in the sand like an ostrich and pretending the lion is not there is not a survival strategy. Delaying and allowing problems to grow bigger is ultimately a lose-lose proposition.

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// construction business news me // August 2017 24 // Cover Story Out of india DK Sen from Larsen & Toubro Infrastructure talks to Paromita Dey about the Indian conglomerate’s projects in the Middle East that have helped the contractor make strides T outed as one of India’s largest and fastest growing multina- tional conglomerate engaged in technology, energy, engineering, con- struction, manufacturing, and financial services, Larsen & Toubro (L&T) has been actively spreading its wings in the GCC, bagging some of the impor- tant projects on the way. The company has been present in the Middle East for over four decades, with its debut project being the Abu Dhabi Interna- tional Airport in the late 80’s. Some of its landmark project wins include a $161.3mn contract in Saudi Arabia for the Riyadh Metro in Septem- ber 2015. L&T’s railway business unit was awarded the contract by the BACS consortium, which comprises Bechtel, Al Mabani, CCC, and Siemens, for the construction of ballastless tracks for Ri- yadh Metro Lines 1 and 2. The project involved the construction of 62.86 km of double ballastless tracks in tunnels, viaducts, at grade sections, and three depots. The project is scheduled to be completed in 40 months. The contractor is also involved with the works for the Midfield Terminal at the Abu Dhabi International Airport in the UAE capital. L&T will build con- crete hard stands for aircraft parking around the new building, including contact and remote stands. The airside works include taxi lanes along the apron parking stands and link taxiway connections to the existing airside infrastructure with a tunnel on the airside. The major item of works for the airside include earthwork, concrete pavement, asphalt pavement with markings, drainage, general utilities, airfield ground lighting, gate services such as flood lighting, visual dock guidance system, and structural works/ systems for airside tunnel. Also in Abu Dhabi, the Indian con- tractor is working on the improvement L&T is involved with Midfield Terminal Abu Dhabi Airport

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construction business news me // August 2017 // www.cbnme.com 25 of Mafraq to Al Ghweifat border post highway. The firm is also awaiting a new project from Dubai’s Roads and Transport Authority (RTA). In the Sul- tanate of Oman, L&T is actively pursu- ing the construction of the package four for the Batinah Expressway and the dualisation of the Bid-Sur Road. At present, the company is imple- menting projects worth approximately $7.7bn across the GCC region, accord- ing to DK Sen, director and senior executive vice president (infrastruc- ture), L&T. Sen also holds additional responsibilities as the chairman on the boards of L&T Infrastructure Engineer- ing Company and L&T Oman. He mentions: “We are quite opti- mistic that we will secure some huge projects in Kuwait and Africa in the near future. From an infrastructure business standpoint, we execute jobs on engineering, procurement, and construction (EPC) lump sum as well as on re-measurable basis in the fields of roads, airport infrastructure, metros, railways, as well as roads and infra- structure development of townships.” Currently, the company is operating in four countries in the Middle East and boasts of a strong track record of executing prestigious and challeng- ing mega projects. Sen adds: “We will continue to deliver our projects on time with superior safety and qual- ity standards and remain focused on improving the efficiency of project delivery with an effective internal pro- cess control team. Having understood the nuances and sensitivities in each market, we will continue to explore and be focused on the markets that will give us the right projects.” Challenges faced L&T has been constantly involved with successful execution and on time delivery of mega projects in India, according to Sen. “We possess the re- quired resource base, technical know- how, in-house construction methods, design cells, and a large bandwidth of management staff. Strong back office engineering support back home in India who can design and present the most cost optimal solutions is also one We will continue to deliver our projects on time with superior safety and quality standards and remain focused on improving the efficiency of project delivery.” DK Sen, L&T Infrastructure

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// construction business news me // August 2017 26 // Cover Story of our other forte. We have a strong supply chain spread across on global level helps us in sourcing the mate- rial of a superior quality and at an optimum cost.” But despite completing some chal- lenging projects in the region, the road has not been easy for the global conglomerate. Having faced with competition from all the regional players in the field of infrastructure, Sen points out that one of the major challenges the company faces in the Middle East include the regulatory requirements like restrictions on the visa for the workforce. “We, being an Indian organisation, try to mobilise our workforce from our domestic sources where we have specially trained the workforce by imparting new skills through our skills development centre (CSTI). But due to the visa restrictions, we are forced to source the workmen from other sources and training has to be given to them again.” Future outlook Due to the falling oil prices and gov- ernment’s decision to cut down on financing, the contractors in the Gulf have been facing cashflow constraints for the past year. Sen duly agrees that due to the uncertainty in the market condition and drop in international oil prices over the last year, there has been a dramatic impact on the eco- nomic outlook of the GCC countries, and hence, re-structured the way proj- ects are executed in the region. “The inflow of new construction projects in the market have seen a We have a strong supply chain spread across on global level helps us in sourcing the material of a superior quality and at an optimum cost.” DK Sen, L&T Infrastructure L&T is working on the $161.3mn Riyadh Metro contract

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construction business news me // August 2017 // www.cbnme.com 27 considerable slowdown due to the ongoing economic turmoil. This eco- nomic downtrend forced the investors to re-think project execution and pri- oritise developments, which are more need-based and social infrastructure projects such as schools, hospitals, etc. The GCC countries have always focused on building these kind of prioritised projects; and with the new outlook, we are quite confident that the economic situation will improve in the coming quarter.” Sen also remains confident that the company will not face any immediate impact on the revenue of the company from international business, since “we have a healthy order backlog”. He adds: “Currently, we remain focused on delivering the projects secured by us and look forward to the right opportunity to make a foray either through local partnering or by our own resources depending on the proj- ect risk, profile, and size.” The company is trying to explore new regions like Africa to diversify its portfolios, since according to Sen, there has been a decline in the inflow of con- struction projects. Sen concludes: “We are here to stay put and look for re- puted projects where we can strength- en our design capabilities and will be looking for big projects in partnership with local players as well.” Mafraq to Al Ghweifat Border Post Highway (pic courtesy: WAM) Batinah Expressway in Oman

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// construction business news me // August 2017 28 A Bitter Pill // Country focus Saudi Arabia, reeling from an economic crisis induced by an historical over-reliance on oil sales to support the economy, finds itself at a crossroads that could make or break its future. Dhairya Negandhi writes

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construction business news me // August 2017 // www.cbnme.com 29 Saudi Arabia has been an eminent figure in shaping and moulding the Middle Eastern region into what it is today. Geographically, economi- cally, and culturally, the Kingdom is the heart of the Arab and Islamic worlds. Oil is an integral facet of the nation’s history, with oil-based rev- enues accounting for an overwhelm- ingly significant portion of Saudi Arabia’s economy. Today, Saudi Arabian oil exports constitute 25% of proven world reserves. The nation has developed enormously as it took full advan- tage of the insatiable demand for fossil fuels, and quickly grew into a global powerhouse. The unbridled and exponential growth of the Kingdom as it burst onto the world economy meant it had to adapt and adjust to its new inter- national status. Infrastructure swiftly became a top priority, and as invest- ments came flooding in, construction and development snowballed into an impressive industry. The country's construction sector contributed around 8% of Saudi Arabia’s total gross domestic product (GDP), making it the largest construction market in the Middle East. Around 67% of construction investment is direct from the government with large-scale projects in the sector for the coming years set to reach $800bn, according to recent reports. Saudi Arabia has, through the careful and cunning exploitation of domestic resources, shifted from an inconspicuous society to a dominant country whose immense wealth and a seemingly ceaseless supply of oil was the envy of the world. However, the collapse of the global oil price since the summer of 2014 slowly impacted the Kingdom’s public finances –given that it depends on oil sales for 90% of state revenues. The Kingdom’s budget deficit for 2015 swelled to 15% of its GDP. The construction sector took a se- vere battering as demand for building projects of large and small scales alike dropped drastically, due to concerns over economic stability and future. The Saudi government began to try and aid their flailing economy by introducing an “austerity” budget and taking other corrective action. This simply could not work as the concept of income tax is foreign to Saudi citi- zens and state subsidies render petrol and energy dirt cheap. With the closure of some of the big names in the Kingdom’s construction sector including Saudi BinLadin and Saudi Oger, experts remain of the opinion that the existing ones should react best to the market conditions. Spencer Wylie, KSA country director for Faithful & Gould, says: “When any global market contracts, every company, not just construction ones, within that market is forced to look at ways and means of essentially staying alive. Many companies do so by cost cutting measures, headcount reductions, and the like. Others simply make the toughest strategic call of all and say this isn’t working and exit the market. “Those companies that react best to the market conditions and make those tough decisions are the ones that survive and are then best placed to re-engage with the market leaner and more efficient than before. It will be the companies that react best and quickest to change that re-merge stronger in the future.” The International Monetary Fund (IMF) predicted that Saudi Arabia would exhaust its foreign exchange reserves at an alarming rate- merely five years. This meant that the Saudi government’s savings consisted predominantly of cuts in planned building projects. Reserves worth $746bn in August 2014 have already fallen to $646bn. Due to the economic crisis, the outlook for Saudi Arabia’s construc- tion market has remained sombre in 2017. It did not help that a substantial amount of construction projects and sector revenues were sponsored by the state, and a deterioration of its fiscal position translated to a radically low demand. This nationwide degeneration of demand has led to increased com- petition, as builders work on lower margins to be competitive in a tough market and obtain contracts. While banks had followed a very open loan policy strategy in the past, lending has now turned very constrained and regulatory due to the difficult economic situation and increasing default rates. This, coupled with the deteriorated demand situation, has burdened the management of working capital and the cash flow position of most construction businesses. Wylie continues: “With the advent of reduced liquidity in the market, clients We have observed continuing desire from the public sector to involve the private sector in development projects.” Maroun Deeb, JLL

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// construction business news me // August 2017 30 have placed alternative financing solu- tions firmly on the agenda with initia- tives such as public private partner- ships (PPP) and the first half year has seen some significant tenders on this basis. This bodes well for the short term as the industry hunts for positivity and work with the trend expected to increase, although with some caution as over exposure to alternative finance can cause long term fiscal issues.” Vision 2030 Saudi Arabia’s predilection to rely almost entirely on their vast reserves of oil for economic revenue gradually led to a nationwide collapse. Previous generations may have basked in the opulence of an oil-obsessed economy, but the glory days are nearly over. The Kingdom had come hurtling down to reality, disillusioned with the profit- ability of oil export, realised the need for diversification in order to survive. This is where Vision 2030 comes into the fold. It is a declaration of the new crown prince of Saudi Arabia, Mohammed bin Salman’s, intent to reduce the Kingdom’s dependence on oil exports and revenues, due to the harsh effects the global dip in oil prices had on the nation, as well as diversify its economy away from energy, and develop service sectors such as health, education, recreation and tourism. In essence, Vision 2030 aims to reform the way in which Saudi Arabia is governed. The fiscal policy reform sets out specific commitments for government ministries, with the ultimate goal of achieving budgetary balance, strengthening financial governance, and increasing non-oil revenues. The construction market within Saudi Arabia is likely to continue with a pe- riod of re-structure and re-focus.” Spencer Wylie, Faithful & Gould // Country focus

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construction business news me // August 2017 // www.cbnme.com 31 Analysts and experts have grasped that Vision 2030 will be a pivotal key to opening up the infrastructure market and providing some measure of relief for the construction sector, which has been restricted since the 2014 economic crisis. Maroun Deeb, head of project and development services, KSA and Bahrain, JLL, says: “We have observed continuing desire from the public sector to involve the private sector in development projects. We feel that the current dearth of quality construction companies is being filled by more qualified contractors from within KSA and the wider GCC. Our understanding is that the market will start to ramp up by end of 2017.” Future Outlook In Saudi Arabia’s endeavours to generate more non-oil based revenue, it became the driving force behind the OPEC agreement of November 2016 that saw all the members of the Organisation of Petroleum Exporting Countries (OPEC) - barring Iran, Libya, and Nigeria - agreeing to cut production by 1.2mn barrels per day, which makes up 4.5% of current output. This monumental decision saw OPEC committed to its first oil production limits in eight years, and Saudi Arabia proved to be the linchpin of the accord. The OPEC agreement is crucial as it proves to investors, citizens and the rest of the world that Saudi Arabia is breaking its addiction to oil. It also becomes evident that the nation places a remarkable amount of value on their construction sector and the power of their infrastructure market, hoping that the industry will be aided by greater private sector participation, ensured by the fiscal reforms of Vision 2030. Furthermore, Saudi Arabia is set to of- fer 5% of their state-owned oil company, Aramco, to the public sometime in 2018. The nation believes that the capital mar- ket will evaluate Aramco at $2tn, earning the Kingdom $100bn, which is meant to be devoted to diversifying and varying the heavily oil-dependent economy. Wylie adds: “The construction market within Saudi Arabia is likely to con- tinue with a period of re-structure and re-focus, while significant and strategic social infrastructure programmes such as Riyadh Metro continue apace. The re-prioritisation that has taken place in recent years and months was necessary to ensure the country was spending its money strategically, on the correct pro- grammes and projects that deliver the best value for money and provide the greatest impact to the country. “The re-focus that comes from the review of “which projects” to deliver, will ensure alignment with Vision 2030, whilst also tackling historic issues such as late delivery and budget overruns through effective and efficient management.” While many claim that Saudi Arabia would revert to the familiar and previ- ously profitable energy sector as the primary generator of the economy, the Kingdom remains loyal to its cause, unwavering in their belief that the time for change is now.

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// construction business news me // August 2017 32 Home Grown Adam Fleming, group supply chain manager from Al Naboodah Group Enterprises (ANGE), highlights the importance of associating with local suppliers to maximise output Spend with our local suppliers was to support our construction businesses, our plant unit, our electrical business stream, and our commercial businesses. ” Adam Fleming // Interview

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// construction business news me // August 2017 34 // Interview Developing a sustainable environment and infrastructure, diversifying the economy and localising are key areas of focus in the UAE Vision 2021. How does ANGE’s procurement policy align with this vision? Our procurement policy is specifically designed to be aligned with and support our group’s vision. We have a clearly stated vision for 2020 and managing our procurement delivery is an integral part of achieving that vision. We see our relationship with our sup- ply chain as a two-way street. We have a supply chain charter and policy and we actively encourage our supply chain to endorse this by signing up to the same. Our goal is to create long-term, sustain- able relationships that are mutually beneficial and are pursued in the spirit of honesty, integrity, and transparency. Our goal is to secure maximum uptake on signing up to the supply chain char- ter from our active supply chain by the end of 2017. We know that in 2016 a quarter of ANGE’s entire turnover was spent on local suppliers. Can you provide further details about which suppliers these were and what sectors? Spend with our local suppliers was to support our construction businesses, our plant unit, our electrical business stream, and our commercial businesses. Through our centralised procurement function, we can ensure that we maxi- mise our total business spend with these local companies irrespective of which part of our group the spend is from. Why is a policy favouring local suppliers important and what impact does this have on both ANGE and the local UAE economy? We are a family-owned Emirati com- pany with a heritage going back to the 1950s. We have a huge impact on the local economy not only through our purchasing activities, but also by providing employment for our own 16,000 people. Our preference is always to use local suppliers so long as they meet our requirements technically and commercially. In turn, this also supports the growth of local business by securing existing and generat- ing new jobs within these companies. What actions do you take to ensure the suppliers you are working with are actually complying with your policy? Our sustainability charter applies to our suppliers and subcontractors. They are encouraged to embrace it and will be audited to record their compliance. We will conduct 360 review meetings to encourage dialogue and to listen to the views of our sup- pliers. We also have started conducting workshops with our supply chain to talk about procurement best practice and to share our thoughts on sustainable and responsible procurement. Do you think the government should establish policy frameworks which encourage the local supplier procurement strategies? Yes, we do. We believe the government already does this. If you take Expo 2020 projects for example, the government prequalification requirement already mandates the use of local suppliers. We are happy to support the government in developing the growth of SMEs so long as the SMEs meet our terms and our prequalification requirements. The vast range of suppliers and increasing compliance issues often cause friction and strained relationships between buyers and suppliers and suppliers and customers. What are you doing to reduce this burden on your own suppliers? We need to comply with our clients’ specifications as well as the UAE legislation and international rules and regulations and we expect the same of our suppliers. We believe in engag- ing with our suppliers and facilitating open dialogue to encourage a smooth relationship. We are investing in supplier events in 2017 as we work towards establishing a world-class supply chain for our group. We do not work in isola- tion; we fully recognise the importance of our supply chain to our business and by adopting similar principles believe this will lead to mutual development and success. Enhanced data reporting and analysis is critical for accountability of any procurement policy. How are you evaluating your procurement strategy and how does this feed into your sustainability report? We have made a significant investment in our enterprise resource planning (ERP) system that gives us much greater access and transparency across the group on a single platform and enables us to report against procurement KPIs. These achievements will be reported di- rectly in our annual sustainability report. What future plans do you have for the ANGE procurement strategy? Will we see further developments of the strategy to include stricter requirements? We anticipate stricter selection which may result in a reduction in our supply chain as we review our performance management reports of our supplier data base. We will review the introduction of further criteria that our supply chain will have to align to, based on the require- ments of the UAE government and that of our clients. We already engage in sup- plier performance management with our subcontractors and suppliers, providing review and comments on their perfor- mance through 360o reporting.

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www.cbnme.com RAKCERAMICS.COM L O N D O N “This is the room where I think, the room where I dream, the room where I design. Now, this room is limitless.” Erich, Architect CERSAIE BOLOGNA, ITALY 25-29 SEPTEMBER 2017 PAV. 30 STAND D42 E41 PAV. 14 STAND B31 C32

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// construction business news me // August 2017 36 // Case study A safer point of Construction chemicals specialist, Mapei, outlines its scope of work and the products they used to work on the King Abdullah Petroleum Studies and Research Centre in Saudi Arabia

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construction business news me // August 2017 // www.cbnme.com 37 view T he King Abdullah Petroleum Studies and Research Centre, also known as KAPSARC, claims to be an extremely futuristic structure, which continuously expands its crystal shape within the desert. The centre is designed to give an illusion that a white oasis descended on land directly from the sky – it is inspired by the nature of a fresh leaf, which catches the sun and flourishes. The shape of the spaces, which alternates between colours, closed and modern, particularly conceived to serve the purpose of studying and re- searching, but also resting and meeting people in an inspiring environment. KAPSARC, launched in 2009, is a non-profit institution focused on finding solutions for the most effec- tive and productive use of energy to enable economic and social prog- ress in the region and across the globe. The research areas include global energy markets and econom- ics, energy efficiency and produc- tivity, energy and environmental technologies, and carbon manage- ment – relevant to a country such as Saudi Arabia whose activities have always been linked to extractions. However, its work aims at improving the economies of many other coun- tries, such as China, India, and East Af- rica. Additionally, the centre employs workers from 15 different nationali- ties, 40% of which are women. The centre includes two main areas, the first contains the IRA, while the second contains the research complex within five main buildings. A field of solar panels produces 20% of the electricity needs, with an area of 55,000 sqm and 18,000 units generating about 5,800 megawatt hours (MWh) of electrical energy annually. KAPSARC stands as one of the big- gest projects in Riyadh, with numer- ous companies wanting to be part of this major development. Mapei was chosen as the waterproofing supplier/ manufacturer due to its expertise and competitive pricing. As a result of its old ties and joint projects history, the contractor, DEPA Saudi, was familiar and confident with Mapei’s reliable

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// construction business news me // August 2017 38 // Case study systems and products quality that delivers constant results, claims the construction chemicals specialist. Mapei claims that the project was challenging, as the building needed to provide protection from the region’s extreme heat and sun exposure. Materials needed to be placed in a manner to allow the smooth tem- perature transition from one space to another, including all dry and wet areas. Additionally, the building was aiming for all sustainable and energy efficient products, another reason the firm secured the project, turning their 530,000 sqm surface into an actual footprint area of 28,500 sqm. KAPSARC, with its massive area, is by far the largest petroleum research centre in the world. Mapei provided a complete waterproofing solution for the application of the wet areas and bathrooms, supplying products such as Mapeproof Swell and Mapegrout Thixotropic, primarily used to repair concrete, and Mapeband and Map- elastic AquaDefense for floor and wall waterproofing. The company used 23 tonnes of Mapelastic AquaDefense, in addition to 12,700 lm of Mapeband. Mapeproof Swell, a single com- ponent hydro-expansive paste, was applied to form flexible, waterproof seals in cracked and reinforced concrete, sealing any crack in which water can seep through. It can also be used as a bonding product, for various typed of joints in concrete walls. Then, Mapegrout Thixotropic, a shrinkage-compensated fibre-rein- forced mortar, was selected to repair deteriorated areas of concrete. Mapeband, an alkali-resistant rubber tape with felt, was selected to be used in combination with the waterproof- ing on the centre’s wet area’s floors. The solution was applied to corners between adjacent floors before ap- plying the Mapelastic AquaDefense, ready-to-use, ultraquick drying, flex- ible liquid membrane for internal and external waterproofing applications. Mapelastic AquaDefense was selected to waterproof wet areas before laying the ceramic tile finishes. Built using the most advanced Key facts • The research centre was designed by world-renowned architect, Zaha Hadid, who passed away in 2016 • Mapei provided a complete waterproofing solution for the application of the wet areas and bathrooms. methods and technologies, KAPSARC achieved the first Leadership in Energy and Environmental Design (LEED) for Homes Gold Certification outside of North America for the centre’s residen- tial facilities. The evaluation criteria was developed as part of the Honey- well Smart Building Score, which was launched in March 2016. The research evaluated 620 buildings across seven major Middle East cities, Abu Dhabi, Dammam/Dhahran, Doha, Dubai, Jed- dah, Kuwait City, and Riyadh.

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construction business news me // August 2017 // www.cbnme.com 39 Technical data • Owner: Saudi Aramco • Consultant: DEPA Saudi Arabia • Area of coverage: 4,000 sqm • Mapei products: Mapeproof Swell, Mapeband, Mapegrout Thixotropic, Mapelastic Aquadefense • Intervention period: 2013-2016

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Gates Open For the second year running, the Construction Innovation Awards 2017 is one of the leading events applauding the achievements of the region’s construction professionals. The awards strive to recognise individual excellence, corporate strengths, and project success. Companies are invited to nominate the people, projects, and initiatives of which they are most proud of, across 18 categories. Entries will be judged by an eminent jury of industry experts. Nominate yourselves now to stand a chance to win at the much-awaited construction industry awards event of 2017. // Awards preview // construction business news me // July 2017 40 Company Awards Contractor of the year This award category recognises the outstanding main contrac- tor active in the regional construction sector in the 12 months to the end of August 2017. Judges will be looking for an exempla- ry track record of delivering a number of high-quality projects to clients on time and on budget during this period and to the highest standards of safety. MEP Contractor of the year The award will go to the outstanding MEP contractor operating in the regional construction market in the 12 months to the end of August 2017.Judges will be looking for an exemplary track record of delivering a number of outstanding MEP projects to clients on time and on budget during this period and to the highest standards of quality and safety. Consultant of the year Contenders for the Consultant of the Year award will need to demonstrate a strong track record of delivering a number of ex- ceptional projects in the 12 months to the end of August 2017. Judges will award extra merit for evidence of innovation and successful delivery of complex, ambitious projects. All types of construction consultancy companies (quantity surveyors, cost consultants, engineering consultants, project management consultants, etc) are qualified to nominate. Real estate developer of the year This category recognises the outstanding property developer active in the regional market in the 12-month period to the end of August 2017. Judges will be looking for an exemplary track record of delivering a range of outstanding projects on time during this period and to the highest standards. Preference will be given to entrants that provide evidence of innovation, complexity, productivity, and quality. FM Company of the year The award for the Facilities Management (FM) Company of the Year will go to the outstanding performer in region’s FM sector in the 12 months to the end of August 2017. Judges will be looking for strong evidence of growth and expansion during the period, delivery of quality service, innovation, and use of new technology. HSE Initiative of the year Contenders for the Health and Safety (HSE) Initiative of the Year award will need to provide details of an initiative successfully executed in the GCC in the 12 months to the end of August 2017. The category is open to all companies operating within the construction sector in the region. Special merit will be awarded to companies that can demonstrate the initiative has had a wider impact on the industry. Sustainability Initiative of the year Contenders for the Sustainability Initiative of the Year award will need to provide details of an initiative successfully executed in the region in the 12 months to the end of August 2017.The category is open to all companies operating within the construction sector in the GCC. Special merit will be

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www.cbnme.com construction business news me // July 2017 // 41 awarded to companies that can demonstrate the initiative has had a wider impact in the industry. CSR Initiative of the year Contenders for the Corporate Social Responsibility(CSR) Initia- tive of the Year award will need to provide details of an initiative successfully executed in the 12 months to the end of August 2017.The category is open to all companies operating within the construction sector in the GCC. Special merit will be awarded to companies that can demonstrate the initiative has had a wider impact in the industry. Project Awards Infrastructure project of the year The Infrastructure Project of the Year Award will be awarded to the project that makes an important contribution to its surround- ings, demonstrates construction best practice, and can show how construction techniques and technology have contributed to its success within 12 months till August 2017. Commercial project of the year The Commercial Project of the Year Award will be awarded to the office project that makes an important contribution to its surroundings, demonstrates construction best practice, and can show how construction techniques and technology have contributed to its success within 12 months till August 2017. Retail project of the year The Retail Project of the Year Award will be awarded to the project that makes an important contribution to its surround- ings, demonstrates construction best practice, and can show how construction techniques and technology have contributed to its success within 12 months till August 2017. Hospitality project of the year The Hospitality Project of the Year Award will be awarded to any hospitality/tourism-related project that makes an important contribution to its surroundings, demonstrates construction best practice, and can show how construction techniques and technology have contributed to its success within 12 months till August 2017. Residential project of the year The Residential Project of the Year Award will be awarded to the project that makes an important contribution to its surround- ings, demonstrates construction best practice, and can show how construction techniques and technology have contributed to its success within 12 months till August 2017. Sustainable project of the year The Sustainable Project of the Year Award will be awarded to the project that makes an important contribution to its surround- ings, demonstrates construction best practice, and can show how construction techniques and technology have contributed to its success within 12 months till August 2017. Individual Awards Project manager of the year The Project Manager of the Year award will go to the individual who can demonstrate supreme project manage- ment skills on major and complex projects over the past 12 months till August 2017. Engineer of the year The award for Engineer of the Year will go to the engineer who can demonstrate the greatest impact on his or her organisation during the previous 12 months. The category is open to any engineer working at any company operating within the GCC construction sector during the period. Construction Executive of the year The award for Construction Executive of the Year will go to the executive who can demonstrate delivering outstand- ing results at his or her organisation during the previous 12 months. The category is open to CEOs and other senior executives working at any company operating within the GCC construction sector during the period. Lifetime Achievement Award This award will go to an individual that has made an outstand- ing contribution to the construction and real estate sector in the region during his/her career. This award will be chosen by a panel of judges.

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// NEWS // Awards preview // construction business news me // July 2017 42 • Lifetime Achievement Award: HE Hesham Abdulla Al Qassim, CEO, Wasl Asset Management Group • Master Developer of the Year: Dubai South • Contractor of the year: Trojan General Contracting • Developer of the year: Azizi Developments • Commercial Project of the year: Citywalk by Meraas • Project Management firm of the year: Parsons • MEP Contractor of the year: ALEMCO • Leisure Project of the year: Dubai Parks and Resorts • Consulting firm of the year: Hill International • Fastest growing company: KBW Investments • Hospitality project of the year: The Palm Tower by Nakheel • Residential project of the year: Gardenia Residency by Shaikhani Group • Engineer of the year: May Faraj, Arcadis • Infrastructure initiative of the year: China State Construction Engineering Corporation • FM Company of the year: EFS Facilities Services • Project of the year: The Residences at Marina Gate by Select Group • Sustainable project of the year: Ted Jacob Engineering Group • HSE initiative of the year: Arcadis • Engineering solution of the year: Kirby Building Systems • Formwork company of the year: Doka Gulf • Innovation of the year: KIMMCO Wall of fame

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www.cbnme.com THE HOME OF REAL ESTATE INVESTMENT REGISTER ONLINE » SAVE AED100 Dubai World Trade Centre, UAE Cityscape Global 2017 is the largest and most influential real estate investment and development event for emerging markets globally. Bringing together investors, developers, government officials and real estate professionals, there is no better place to find investment opportunities and new business partners. THE LARGEST AND MOST INFLUENTIAL REAL ESTATE INVESTMENT AND DEVELOPMENT EVENT FOR EMERGING MARKETS GLOBALLY 11 - 13 SEPTEMBER 2017 +9714 336 5161  info@cityscapeglobal.com  www.cityscapeglobal.com Visit the show for EXCLUSIVE DISCOUNTS AND OFFERS! Official Business Website Business Partner Projects Marketing Sponsor Organised by Official Russian Partner Platinum Sponsors Foundation Partners Strategic Partner Official Classified Partner Silver Sponsor

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// construction business news me // August 2017 44 // Event Automation and Industry 4.0 will be among the central themes solving key challenges at this year’s Materials Handling Middle East, held at DWTC Materials Handling ME A utomation and Industry 4.0 are among the central themes set to solve challenges faced by regional manufacturing, logistics, and warehousing heads at the upcoming Materials Handling Middle East 2017 exhibition in Dubai. Global suppliers are preparing to showcase their latest solutions at the region’s dedicated trade fair for intra- logistics, supply chain management, freight, and cargo, with several of the world’s top 20 materials handling sys- tems already signed on. The three-day event will take place from September 11-13, 2017, at the Dubai International the merging of automation and data exchange in manufacturing tech- nologies, combining cyber-physical systems, Internet of Things (IoT), and cloud computing. Swisslog, an automation expert for robot-based and data-driven intralo- gistics solutions, will be at Materials Handling Middle East 2017 to launch several latest offerings incorporating Industry 4.0. Frederic Zielinski, gen- eral manager of Swisslog Middle East, says: “Industry 4.0 has the potential to reshuffle the cards in how businesses operate. With networked intelligence in manufacturing and self-organising Convention and Exhibition Centre, with the world’s top ranked supplier, Daifuku from Japan, spearheading an international exhibitor charge that also features fellow 20 players from Swit- zerland – Swisslog and Kardex. More than 130 exhibitors from 21 countries representing 250 brands will be out in force, with the global contin- gent of exhibitors complemented by local companies such as SPAN Group, GENAVCO, United Motors & Heavy Equipment, and Eternity Technologies. According to some industry profes- sionals, the next step in the evolution of materials handling is Industry 4.0,

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construction business news me // August 2017 // www.cbnme.com 45 difficulty to get an optimised solution meeting their needs. “Here we play a vital role with our Warehouse Solution Engineering to overcome this challenge by offering end-to-end solutions. We design and develop custom made concepts as per customer requirements, so projects are delivered from one source and in the timeliest manner.” Analysts at Frost & Sullivan estimate the GCC materials handling equip- ment market to grow 4% annually up to 2020, when revenues will reach between $4.8bn. Saudi Arabia, with about 46% regional market share, and the UAE with 35%, make up the largest markets in the region and are expected to continue to lead market expansion going forward. Ahmed Pauwels, CEO of Messe Frankfurt Middle East, the organiser of Materials Handling Middle East, says: “Automation and the merging of digital and intelligent processes and systems will steer the future of regional intra- logistics and materials handling. By im- plementing fully integrated, effective, future-proof automation solutions and keeping their facilities modernised, companies can not only speed up their processes and satisfy changing cus- tomer needs, but also stay profitable by adding greater productivity to their supply chain. “At Materials Handling Middle East 2017, the spotlight will shine on the latest technologies that solve key chal- lenges that warehouse and supply chain managers face today. These range from eco-friendly pallets, automated storage and picking solutions, and warehouse mapping using 3D virtual reality, to more traditional equipment such as warehouse trucks, telehandlers, tow trac- tors, cranes, and packaging.” The event will also return with the highly popular Forklift Operator of the Year, a competition where the UAE’s most skilled forklift jockeys go head to head to be crowned the country’s most skilled, safest, and ef- ficient forklift operator. production processes, the 'factory of the future' will perform a quantum leap in productivity, flexibility, and efficiency. “The focus in the future will no longer be on the manufacturing pro- cess of purely mass-produced goods, but on the customised product manufactured to industrial standards, and thus on customers’ requirements. This evolutionary step can only suc- ceed, however, if we finally break down the barriers between the digital and real worlds.” Zielinski adds: “At our Materials Handling Middle East booth, visitors will learn more about software and smart data we offer and experience the combination and simulation of innovative logistics systems that make the vision of a sophisticated high-tech warehouse a reality today. Warehouse management software will be the key in the age of Industry 4.0, so we’ll demonstrate our latest offerings in that direction as well.” One of the UAE’s leading suppliers of warehouse storage and material handling solutions, Genavco, is another exhibitor launching its end-to-end warehouse solution engineering capabilities during Materials Handling Middle East 2017. Neeraj Mahajan, director of Genavco, says: “The rising need for global production companies to automate operations and foster flow of goods in an efficient manner is the key force driving growth in the materials handling equipment market. The main challenge for customers in this region is to get a complete solution from a single source. They have to approach two or three companies for a complete warehouse solution. This process itself is time consuming and most of the time they are facing great The forklift challenge

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// construction business news me // August 2017 46 UAE DUBAI Wednesday 13th & Thursday 14th September @ 9:00am T. +971 4884 6880 CONSIGN NOW TO OUR FIRST DUBAI AUCTION 2015 Chevrolet Cruze 2003 Hamm 2420D 06-07 Scania P360 - Choice of 11 2008 JCB 3CX P21 - Choice 05-07 Grove 50 Ton - Choice of 2 2006 JCB 535-125 2006 Case 821C Unused Mercedes 2040 - Choice of 6 2004 JCB 540-140 2012 FG Wilson 60 KVA - Choice Unused Hammer HM250 - Choice 2006 Hummer H3 2006 JCB 4CX P21 - 2 of 3 Unused Sany STC200 20 Ton 2013 JCB 540-170 - Choice 11-13 Toyota Camry - Choice of 3 PO Box 263536, Jebel Ali Free Zone www.euroauctions.com Visit our website for full inventory: Contact your local sales representative for more information: Richard Sweatt (ME) T. +971 5581 30321 E. richard.sweatt@euroauctions.com Amjad Faroukh (UAE) T. +971 5074 56262 E. amjad.faroukh@euroauctions.com

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construction business news me // August 2017 // www.cbnme.com 47 // Machinery & Vehicles Our monthly review of the workhorses of the construction industry Muscle & Might Muscle & Might A round-up of the important updates from the global construction equipment market Euro Auctions highlights the market conditions with regards to new and used plants Volvo Trucks showcases its safety technology for the Middle East market 48 54 60

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// NEWS // construction business news me // August 2017 48 Equipment Euro Auctions, Europe’s leading auction house for industrial plant, construction equipment, and agricultural machinery, will hold its first permanent sale at its newly opened site in Dubai in Sep- tember this year. Its 91,000 sqm facility in the Jebel Ali Free Zone Authority (JAFZA) joins its other permanent auction sites in the UK, Europe, Australasia, and the US. Euro Auctions, which was established in 1998 and regularly holds over 60 auctions per year, has confirmed that all the nec- essary services and logistic licences in place for the new venture. Bidders be welcomed on September 13 at the purpose-built 3,000 sqm auction complex which includes a fully air-condi- tioned enclosed auction arena as well as ancillary buildings besides work- shops and infrastructure. Commercial manager, Jon- nie Keys, says: “As part of the continued global Euro Auctions brand expansion, the Middle East, and in par- ticular, the UAE, was always the next country in which to establish a strong and stable operating base.” Keys added that the com- pany has enjoyed an in- creased participation from the Middle East in its Eu- ropean and American auc- tions over the past year and, in particular, in the last six months. "And indeed we have had numerous cus- tomers who requested us that we take a larger part in this region which this fa- cility will allow in addition to growing our customer base," he said. “We have many good relationships with buyers and sellers in the Middle East and Africa and this new auction loca- tion will enable us to create stronger relationships with our customers in this region and open the door to many new buyers and sellers.” Euro Auctions recently held the world’s largest one-day auction of mobile cranes, selling 127 cranes with a hammer value of $36mn and is planning to hold four sales per year in Dubai. Keys adds: "This will provide its loyal cus- tomers more options and platforms to buy and sell equipment and assets when, where and how they like. This expansion allows for total global reach and assets can be sold where the demand is greatest." Euro Auctions opens next month in Dubai

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construction business news me // August 2017 // www.cbnme.com 49 Contract Case appoints AMA Motors in Bahrain Case Construction Equipment has appointed a new official distributor in Bahrain. The company which sells both compact and heavy equip- ment into the region has re- vealed that AMA Motors will sell and support its full range of equipment at its 2,000 sqm premises in East Riffa. Case expects that there is a high demand for backhoe loaders and skid steer load- ers in Bahrain and will of- fer its own award-winning ranges to the market as well as 885B motor grader along- side its heavier wheeled loading shovels. AMA Motors showroom has been adapted to include a built-in display area where it can show the equipment on gravel and rocks, a well- equipped workshop, and a training facility. In addition, it operates two well-stocked parts shops to provide fast and efficient parts service. Franco Invernizzi, regional director at Case Construction Equipment, says: "We are very pleased to extend our col- laboration with AMA Motors. They will bring to our cus- tomers more than 60 years of experience and the personal care of a family-owned busi- ness together with the back- ing and resources of a global brand like Case." It will complement the of- fering of Case products with a range of services, bringing to Bahrain – which has ben- efitted from funding from the Gulf Development Program in recent years - construc- tion contractors “new and in- novative” ways to purchase and maintain its equipment, claimed Invernizzi. "For example, AMA will bring to market flexible equip- ment leasing options, de- signed to fix customers costs and deliver exceptional on- site hassle-free performance," he noted. "This appointment builds on the long-standing and successful partnership that has developed between CNH Industrial and AMA Mo- tors over the years. The latter has been serving as distributor of Case’s sister brand.” At the recent UITP Global Public Transport Summit held in Montreal, Canada, the Saudi Arabian bus opera- tor, SAPTCO (Saudi Public Transport Company), and the French public transport company, RATP Dev (Régie Autonome des Transports Parisiens), signed a contract for 242 MAN Lion’s City M city buses. Scheduled for delivery in 2018, these will be the first MAN buses on the roads of the Saudi Arabian capital Riyadh. MAN Truck and Bus' official partner in Saudi Arabia, Haji Husein Alireza and Co (HHA), managed the entire tender process and will work closely with the customer ensuring the highest standards in quality and safety are met. SAPTCO and RATP Dev have worked together as the joint-venture Public Transport Company (PTC) since 2014 and are in charge of building a public transport network in Saudi Arabia from scratch. The Paris-based RATP Dev is responsible for operations, while SAPT- CO takes over the fleet management. In total, they plan to build up 100 routes with 1,000 vehicles. MAN Lion's City M buses are de- signed to make travel enjoyable and efficient at the same time. The 242 city buses will be 10.5 metres long and feature Euro 5 engines with 290 PS (213 kW) of power. To meet the de- manding requirements of transporta- tion in Riyadh, the bus offers generous space and boasts 29 comfortable seats with ample legroom, tinted windows and high-performance air condition- ing. Like the interior, the exterior has been especially designed to meet the customer’s requirements, including creating a unified identity for the new public transport network. Franz von Redwitz, managing direc- tor, MAN Truck & Bus Middle East, says: “We are excited to contribute to Saudi Arabia’s transport landscape with our MAN Lion’s City buses con- necting its people and cities. We are confident that we will be able to take our partnership to even greater suc- cess in the years to come.” Taher El-Khatib, general manager, HHA, adds: “As the oldest and most reputed automobile distributor in the Arabian Peninsula, HHA brings signifi- cant expertise and capabilities in the commercial vehicle business along with an extensive network of branches across Saudi Arabia. We look forward to working closely with MAN in en- hancing connectivity within Riyadh and contributing to the transformation of the city’s public transport system.” MAN operates buses in Riyadh for the first time

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// NEWS // construction business news me // August 2017 50 Vehicles Al Habtoor Motors has launched the all-new range of Thunderbolt trucks at a special launch event to kick off Habtoor’s first anniversary celebrations in Saudi Arabia. More than 150 truck operators attended to learn about the new heavy-duty FUSO Thun- derbolt, which has a GCW of up to 100 tons and 438 hp. Al Habtoor says it plans to expand across the King- dom and will hold promo- tional events to celebrate the launch of its FUSO range in Saudi Arabia. The Thunderbolt is one of the new generation of trucks designed to reduce truck operating costs through low running costs, low fuel con- sumption, and quick and ef- ficient maintenance. It comes in configurations of 4x2, 6x4, and 8x4 and is available with both tractor head and rigid chassis. According to Al Habtoor, it is backed up by a three-year, 450,00km war- New FUSO Thunderbolt strikes in Saudi Arabia ranty for “total peace of mind and, given its heritage, will have the strongest residual values in the market”. Al Habtoor’s country man- ager, Simon Monahan, says: “We believe that Thunder- bolt is perfectly suited for the Saudi heavy-duty truck market. We have a num- ber of demonstrators which will be loaned to large fleet customers in KSA for test- ing against their existing fleet. This will demonstrate the cost savings in a real world environment.” Monahan said the compa- ny, which operates two fa- cilities in Riyadh and a newly opened site in Khobar, will also inaugurate a new facil- ity in Jeddah next month. “We only sell trucks in Saudi Arabia, so we are determined to demonstrate the highest possible truck industry stan- dards. We open in Jeddah on September 1, so we are cov- ering the three largest cities in KSA. In addition, we support fleets through Habtoor Tech- nical Support 24X7, which is a fleet of mobile maintenance vehicles, to cover the rest of the Kingdom and is available to any FUSO fleet, even if the vehicles are not purchased from us.” Graeme Macdonald, CEO of UK equipment manufacturer, JCB, has told the Financial Times that the company has seen a con- tinuing fall in its sales in the Middle East in 2017 but its profit has been boosted by expansion in other markets. The Staffordshire-based company has been a notable success in emerg- ing markets over the past decade, par- ticularly in India and Brazil. Macdonald said the company has however also found it harder in the Latin American country in recent months. “We’re still seeing further declines in places like Brazil and the Middle East, but nearly every market in the world is showing some growth,” Macdonald told the newspaper, adding that the com- pany has managed to grow its market share globally. He added that earnings reached $3.36bn in 2016, a rise of 12% on the previous year as it continued to capitalise on its strong presence in India (where it also produces its famous backhoe loaders as well as excavators and loaders for the Middle East market) as well as an improv- ing Russian market. JCB’s chairman was a very public advo- cate of the campaign for the UK to leave the EU, but Macdonald revealed the company has only had a “small benefit” from the weaker pound post-Brexit, as it buys ma- terials and components in other currencies. JCB Middle East profits soar despite declining sales

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construction business news me // August 2017 // www.cbnme.com 51 Machinery Construction Terex’ recently unveiled EvoQuip brand, which en- compasses building and construction; quarries; farm- ing and agriculture; land- scaping and gardening; and asphalt and concrete crush- ing, has a new addition to its impact crushing range, the Cobra 230 impact crusher. The Cobra 230 promises rapid set up times and an intuitive control system en- abling the operator to be crushing minutes after un- loading the machine from the lorry. The operator can also adjust the crusher set- ting easily without the need for any tools using the user- friendly hydraulic assist that is standard on the machine. As material moves from the feeder through the impactor onto the product belt, each section becomes wider, en- suring an unrestricted flow. The Cobra 230 uses a fuel effi- cient and high-performing di- rect drive system to power the impact crusher. This, along with the two independent hy- draulic controlled aprons, al- lows the operator to optimise SDLG’s business director, Sha- hir El Essawy, says the com- pany’s new asphalt compac- tor strengthens its position in the infrastructure segment in the Middle East and Africa. SDLG is introducing the RD730 to meet demand for in- frastructure projects in region. It’s a double drum asphalt compactor that offers efficient vibratory functionality, easy maintenance, and exceptional operator comfort. The intro- duction comes as infrastruc- ture projects and investments increase in the region, par- ticularly in Africa, notes the Chinese manufacturer. SDLG’s new compactor is a double drum model that has been designed for du- rability and robustness. The SDLG RD730, a 3t-capacity double drum asphalt compac- tor, is the leading model of a new generation of hydraulic, double-drum vibratory rollers from the company Essawy pointed to a high level of infrastructure work in Africa and the Middle East as reasons for why it’s crucial that SDLG offer a new dou- ble drum asphalt compac- Terex’ EvoQuip unleashes the Cobra 230 crusher SDLG launches first asphalt compactor the material throughput and reduction while ensuring the best fuel efficiency. According to the company, the Cobra 230 will enhance the profitability of construc- tion and demolition, asphalt recycling, quarrying, and contract crushing. Construc- tion director, Gerd McCann, said his company J&V Con- struction in Ireland was im- pressed by the machine dur- ing testing. “The EvoQuip Cobra 230 has managed to surpass our expectations, handling a mix of difficult rock and heavy duty recy- cled concrete with ease, and turning it into products we have been able to reuse on our construction sites.” Matt Dickson, EvoQuip’s product line director, adds: “The Cobra 230 Impact Crusher is a machine that provides class-leading pro- ductivity, unmatched ver- satility, and excellent fuel efficiency. The quick set up times, simple intuitive oper- ation, and ease of transport makes this machine an ideal solution for all applications.” tor. “In Africa, wherever one travels, it seems they will find road-building crews these days,” he explains. “And in the Middle East, recent proj- ects, such as the opening of a 62 km highway from Abu Dhabi to Dubai, show that demand is increasing for reli- able construction equipment that can maintain uptime on the job site and return on investment for their owners. The SDLG RD730 is ideal for these types of projects, as it provides a great value propo- sition, houses reliable tech- nology, and is supported by a global leader in construc- tion equipment.” The RD730 features a Kubo- ta D1803-M-E3B engine that boasts a net power of 24.8 kW at 2,400 rpm, enabling it to travel up to speeds of 10.5 km/h. Its drive system uses proven hydraulic compo- nents that provide both even and high tractive force across the front and rear drives. The operator can also easily change the vibration frequen- cy (from 55 Hz to 67 Hz) to match the performance with production requirements.

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// construction business news me // August 2017 52 // Advertorial Ford Trucks’ mission is to stand alongside its clients in the region Dedicated to the region F ord Trucks has provided in- novative automotive products and services since 1959. The company has always embraced its mission of providing state-of-the-art solutions and services beneficial to the community. Its passion of serving the best and achieving maximum customer satisfaction led the company to devel- op tailor-made solutions and competi- tive products according to customer needs and expectations in partnership with concerned regions. Since starting the Middle East opera- tions in 2014, it has been one of Ford Trucks’ primary regions. As a result of the hard work of the Ford Trucks Middle East team, it has succeeded in establishing a widespread network of dealers in the region with powerful local partners including Al Jazirah Ve- hicles Agencies (AJVA) in Saudi Arabia, Al Tayer Motors/Premier Motors in the UAE, Mohsin Haider Darwish in Oman, Almoayyed Motors in Bahrain, and Al Kasid Commercial Agencies in Iraq. Additionally, Kuwait will be join- ing Ford Trucks’ Middle East network before the end of this year, completing a structure of dedicated distributors in each country that offers excellent ser- vice and sales experience at dedicated service facilities for its customers. Ford Trucks has confidence in the promising vision of Saudi Arabia and, as in other GCC countries, it has de- veloped an ambitious growth strategy. The immense network of its official dealer in KSA, AJVA, provides a great opportunity to cover such a large country, and Ford Trucks has quickly established representation in Riyadh,

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construction business news me // August 2017 // www.cbnme.com 53 Dammam and Jeddah. Thanks to the great benefit of operating Ford Trucks offices in those cities, it is able to work seamlessly with AJVA and has forged fruitful and productive links with all stakeholders in the country such as fleet customers, municipalities, public authorities, and superstructure com- panies. Looking ahead, Ford Trucks is planning on expanding its operations in five further cities in the country. Ford Trucks provides unique and tailored approaches and solutions to each region and country. All Ford Trucks products and after sales solu- tions for the GCC have been carefully selected and prepared in order to fit with market requirements. Even for tough work places such as construction sites and projects, Ford Trucks offers comfort and exceptional uphill traction on rugged terrain with its 2017 Ford Trucks Construction Series, which delivers a powerful 430 PS and 2,150 Nm of torque with the new Eco- torq engine - a significant improvement over the previous generation which de- livered 350 PS and 1,400 Nm of torque. The new 400 kW engine brake pro- vides the driver with firm control while climbing steep slopes in earthmoving and cutting sites. The optional 600 kW Intarder option offered for even tough- er conditions brings the total braking capacity to 1,000 kW, ensuring that the heaviest loads can be safely carried on even the steepest slopes and hills. The new Ford Trucks Construction Series comes also with an automated transmission option. The off-road, rocky and economy modes ensure the automated transmission option assists drivers in keeping their vehicle sure- footed on virtually any terrain. In the recently introduced 3543M and 4143M 8x4 and 6x4 construction trucks, it has the perfect match for the region. The vehicles are currently among the leading products in the mixer segment in the Middle East and boast engine power of 430 hp and 2,150 Nm of torque. They can also be equipped with a range of 7-12.7 cbm of mixer capacities. Ford Trucks continues to support its clients and minimise their operational costs even after procurement with extended service periods which allow the customers to have the most com- petitive maintenance advantage in the logistics and construction sectors. Ford Trucks offers two years unlim- ited mileage warranty and long main- tenance intervals to keep customers’ operating costs to in minimum. As cus- tomer satisfaction in both product and after sales service is key for company success, Ford Trucks keeps listening to customer feedback and investing in in- dustrial innovation in order to increase retention and ensure repeat orders. The market demand for Ford Trucks products has been increasing year-on- year in the region and it is expected to continue its significant growth until 2020 – a good number of ordered units are expected in the second half of 2017. In fact, Ford Trucks’ future strategy is to firmly establish it as one of the top three preferred brands in the region and to keep serving the Middle East with new exclusive and unique series and services. The market demand for Ford Trucks products has been increasing year-on-year in the region and it is expected to continue its significant growth until 2020.”

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// construction business news me // August 2017 54 // Machinery Euro Auction’s Jonnie Keys tells CBNME which markets are up and which are down when it comes to new and used plant On Demand A lthough the global construction equipment sector has suffered over recent years due to slug- gish economic conditions and slow growth, it is generally expected to boom towards the end of the decade with increasing industrial, resi- dential, and commercial construction activities, global economic growth, and rising public-private partnerships (PPP) driving the market. The overall market is expected to surpass the $250bn mark by 2022 and continue expanding by around 8% in subsequent years – all good news for a hard-hit industry. Both China and India are regarded as key to this growth along with the USA and while equipment types in- cluding dumpers, cranes, and forklifts will increase at a steady rate, both the loader and excavators’ segments will contribute significantly to the increased market revenue, due to the anticipated expansion of resources movement and earth moving operations. Government regulations and environmental legisla- tion concerning carbon emission and fluctuations in oil prices will restrain some market growth; however, rising government investments for infrastruc- ture development and the general ageing of equipment in the marketplace which is now coming up for renewal is expected to offer lucrative opportuni- ties for growth. Anyone looking for impressive con- struction projects has not had to look further than many of the countries in the Middle East. Construction across

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construction business news me // August 2017 // www.cbnme.com 55 the sector is set to remain buoyant and continue for some time with each new development typically demanding large quantities of construction equip- ment, some of which is moved across from recently completed projects, but demand for both new and increasingly low-hours used equipment sourced ei- ther in the region or purchased in other markets and shipped in is becoming increasingly more common. In addi- tion to ongoing projects, the lifting of economic sanctions on Iran at the start of 2016 unlocked an estimated $200bn in projects and these are beginning to start while high profile construction projects like preparations for the 2022 FIFA World Cup in Qatar is also driving demand for additional equipment. Unrest in Egypt, previously one of Africa's economic power houses, con- tinues to have an unsettling impact on Anyone looking for impressive construction projects has not had to look further than many of the countries in the Middle East.” meet demand. This trend looks set to continue for some time and looks to remain a key market for auctioned equipment with excavators, backhoes, dumpers, and diggers, all being high on most wish lists. At the other end of the continent, South Africa's construction industry also looks set to continue its expan- sion over the next few years with investments in infrastructure, resi- dential, and energy projects driving growth while the National Transport Master Plan, the government’s plan to develop its rail network and ports infrastructure, will extend activities towards 2050. Politics have been a key focus across Europe in recent months with the economic markets seeing growth and good prices being achieved in the local markets. While much of Europe is still climbing out of the hole it fell into in previous years, the outlook within the construction sector con- tinues to look strong, supported by changes in agriculture and increased pressures for food production, so ex- pectations remain high. Several ‘pockets’ of growth are clear- ly visible. The UK remains very strong with construction demanding equip- ment and machinery across all sectors. Spain, France, and Ireland along with the Nordic region, is also showing strength, as is the Czech Republic, but central and southern Europe remains somewhat fragile despite the impor- tance the EU Commission places on the construction sector, which is reported to account for over 8% of EU gross do- mestic product (GDP), employing more than 14 million workers, and support- ing over three million companies. The domestic housing sector is prov- ing to be the most robust across the region with growth in certain markets pushing 5%, driving demand for ver- satile multi-function equipment rather than specialist models. Overall con- struction growth is generally forecast to remain at around 1.5%, but with the potential to grow, against a 2.5% growth rate for the wider economy. Across Europe, the equipment rental sector is regarded as having an impor- the region but domestic growth is still forecast. With a number of infrastruc- ture projects, funded by a growing number of PPP projects, coming on stream, many with Chinese investment, means demand for construction equip- ment remains strong but equipment specifications could also become part of the agreement terms. Elsewhere with IS forces also losing ground, international aid agencies are beginning to develop regeneration pro- grammes for the damaged infrastructure and properties across the region which will require massive amounts of con- struction equipment being shipped in to help in the process, which re-opens this market for used plant. Many of the nations remain reliant on mining and mineral extraction, however, urbanisation and demand to meet the needs of the rapidly expand- ing population, closely coupled with the need for both water and energy, are all key driving forces across the continent and result in a number of development projects. Kenya and Ethiopia are both heavily investing in infrastructure with billions worth of projects on the drawing board or already in the pipeline. Uganda and Tanzania are also coming up on the rails forecasting growth in their construction sectors of between 5% to 10% over the next five or more years, with several other nations standing in the wings, looking to follow suit. In the past, operations across the continent have favoured ‘less-technical’/more easily maintained equipment and have often looked to acquire used low-hours machines to

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// construction business news me // August 2017 56 // Machinery tant role in future market demand and growth as continued investment in re- placement equipment in the near and medium term, particularly given the extent to which fleets were updated and extended in 2015-16, will have a significant impact on equipment manu- facturers. Subsequently, the rental fleet sector also has a direct correlation with the used equipment sector, because as new equipment is purchased, volumes of used but well-maintained plant is sent to auction for disposal. In recent years, this used equip- ment has attracted strong resale prices, which has been reflected in the rise in total auction hammer priced achieved. This is in part due to other sectors, having deferred replacing the equip- ment they had following the 2008-09 crash concluding that this has become too long in the tooth for domestic proj- ects, so are now replacing them. This stock churn from the likes of smaller construction companies, civil engi- neering firms, and to an extent, the agricultural sector is likely to continue for the next couple of years. Prices are generally expected to remain buoy- ant even if fewer used pieces of plant were to come to auction as demand with reduced supply could drive the market even higher. In Eastern Europe, a few major civil engineering and infrastructure projects have been announced by the likes of Turkey but even here a decline over the next 12 to 18 months is possible. The old ‘Eastern Bloc’ countries, in particular, are forecasting a standstill, and this is dragging down European averages. The devaluing of the British Pound against the Euro in mid-2016 follow- ing Brexit has seen a sharp increase in the number of mainland Europe and international buyers looking to the UK to pick up quality equipment at reduced prices. The recent liquidation sale of 127 mobile cranes organised by Euro Auctions saw $41mn of equip- ment, ranging from 220t down to 35t units all sold in a four-hour window, the biggest sale of its type ever, with many subsequently being shipped out to be used in Europe and further afield. The construction equipment auction in Leeds in late April also saw $48mn of kit sold in three days, Euro Auctions’ biggest and most successful sale to date. The massive Asia-Pacific region is the leading light in the sector at the moment and will hold onto the top spot for economic and construc- tion growth in 2017; global factors are being felt in various quarters and there are increasing signs that the region is coming off the boil. China, in particular, is falling back, follow- ing its meteoric ‘double-digit' climb in recent years, but that was always to be expected, and its solid single-digit growth is still the envy of many. There are still quite a few mega- infrastructure and industrialisation and urban population projects currently being delivered and while demand for raw materials has waned a little and lower commodity prices globally are being seen, China is still an active consumer. Within the construction equipment sector, a number of manu- facturers have scaled back produc- tion but there is still excess capacity which could trigger discounting on sales on some models within domestic and some overseas areas. That said, demand for excavators and wheeled loaders continue to grow and the overall outlook for all the top domestic manufacturers looks good, particularly as several are now expanding their overseas operations through acquisi- tions and mergers. As a mature market, Japan is still feeling the effects of the global downturn and continues to struggle but has a number of major and ambi- tious infrastructure projects including the $32bn high-speed Tomei-Meishin Expressway between Tokyo and Kobi. Projects relating to the 2020 Olym- pic Games will also be a key source

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// construction business news me // August 2017 58 of new growth but with ballooning expenses being reported, officials have said they will seek to cut building costs rather than move venues. Many also speculate that significant updat- ing of old equipment will be needed to meet requirements moving forward and the acquisition of ‘next generation’ machines resulting in good new equip- ment sales opportunities. The pros- pects for the Philippines and Vietnam remain bright and South Korea also has a growing number of infrastructure projects and the International Olympic Committee also recently confirmed that it was satisfied how arrangements for the 2018 Winter Olympics in Py- eongChang were progressing. India’s economy is on the rise and is widely forecast to sit alongside exist- ing heavyweights like the USA and China early in the next decade. With huge potential within the construction sector, this region is being courted by many new equipment manufacturers. Residential construction and infrastruc- ture, including transport, are seen as core development areas. These will demand large volumes of new equip- ment to meet demand and research have found that while backhoe loaders have dominated requirements until now, there is a growing trend towards larger, better-equipped excavators to meet the needs of larger projects. Looking slightly further afield, Pakistan is shaping up to be another of the stars in this region that could herald Unrest in Egypt, previously one of Africa's economic power houses, continues to have an unsettling impact on the region but domestic growth is still forecast.” // Machinery

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construction business news me // August 2017 // www.cbnme.com 59 some good news in the medium term. There is unfortunately little good news coming from South America now as hyperinflation, lack of invest- ment, and poor domestic sales in a number of the countries grips the region and in areas has resulted in market contraction. The recession in Brazil, putting it in its worst economic position for almost three decades, was masked to a degree by both the FIFA World Cup in 2014 and the Olympic Games in 2016 but the situation is now beginning to ease and economic progress is being made. Inflation is down and manufacturing is also stabilising but it has a long way to go to get back to any recognisable level, with corruption, low oil prices, and the need to replace ageing equipment being the next big issue to be tackled. It is expected that it will be a long, slow, and painful few years yet. Co- lumbia, Peru and Chile continue their fragile recoveries at around the 2% mark. Mexico is also poised for strong growth, due in part to its domestic infrastructure plans and its proximity to the USA. With President Trump now in the Whitehouse and with promises to ‘rebuild America’, his administration team has compiled a list of around 50 major infrastructure projects, like the new Kansas City airport terminal and upgrades to Interstate 95 in North Carolina and the Mexico border wall. These projects collectively have an as- sociated budget of somewhere around $137bn. Seen as investment priorities, they may be funded on a PPP basis but many corporations are still holding off making economic and commercial decisions as they are waiting to see how his policies will impact the rest of the world. How much of this the current US government money will be raised – through tax reforms or a surplus-spending bill – still needs to be agreed and commencement of projects may be delayed until Congres- sional decisions are made. That said, the USA has, in recent years, has had an active construction programme and demand for equip- ment, much manufactured locally, has been buoyant. The residential sector continues to lead the way with po- tentially 1.5mn new homes to be built in 2017-18. The office space sector is also on the increase but the general commercial and infrastructure sectors are stagnating somewhat as low oil prices continue to suppress the overall economic market. Exports of construc- tion equipment have also been falling quarter-on-quarter for almost the past four years with a key factor being a strong dollar making US-manufactured goods less competitive. Finally, with President Trump pulling the USA out of the Paris Agreement on climate change, in order to support his pre-election pledges regarding jobs in heavy industry and mining, this deci- sion may have a bearing upon older machinery and equipment in the USA today that would fail to comply with modern emission regulations. This is a classic case of ‘watch this space’.

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// construction business news me // August 2017 60 On a visit to Volvo Trucks’ huge plant in Gothenburg, CBNME tests the Volvo Trucks Safety Experience technology that will save lives in the Middle East Safety First T he police were quick to the scene in June 2017 when three heavy trucks collided on the UAE’s busy Emirates Road, however, one driver still tragically lost his life. The impact was caused when one of trucks suddenly swerved causing the three vehicles to hit each other in a line – cab to bumper. Could deaths and injuries in road accidents like this across the region be avoided if the truck themselves were able to spot the danger even before it happens? Volvo Trucks and its Saudi Arabian dealer, Zahid Tractor, have chosen to take a lead in road safety and the timing couldn’t be better. Road Safety has become a concern so important to the Saudi government it has placed it at the forefront of its Vision 2030 Na- tional Transformation Program and is targeting a reduction to 20 deaths per 100,000 by 2030. The two companies have recently pulled the covers off a demo version of a new long-haul 4x2 version of the FH truck produced in the coun- try, which they have described as the safest truck made in the Kingdom. The truck comes loaded with safety- enhancing features such as a driver airbag, lane change support, lane keeping support, ESP (as in electronic stability program which keeps the truck steady when driving), as well as a driver alert warning system, and a headway collision warning system with emergency brake that will stop the truck if there is a danger of hitting // Site visit

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construction business news me // August 2017 // www.cbnme.com 61 a vehicle in front. In a move to help improve road safety and enable fleets to participate in the many initiatives being spawned by Saudi’s economic and social reform plans, the FH will have these features as standard. The reviews of the truck, which has been out on a roadshow hosted by Zahid and Volvo Trucks in Jeddah, Riyadh, and Dammam, have been positive so far with the owner of one general trading company Khalid Al Enzi of Malak Al Reem placing an order for 20 units. “I’m planning to include twenty more trucks in my fleet with new safety features. The most important thing in the transport sector is the safety feature which helps in reducing the accidents. I really wish these safety features will work well and will be the solution for the industry,” he said. CBNME was invited to Volvo Trucks’ huge plant in Gothenburg last month to experience the features and understand how they could make a difference on the region’s roads. He- lene Mellquist, vice president, Volvo Trucks International, suggests that, for fleet owners, safety can be both a moral and commercial imperative. “I think with things such like Vi- sion 2030 in Saudi Arabia, there are tremendous opportunities as we go along. These features are done for customer productivity. We know that safety also provides productivity to customers. If a truck is not crashed, it stays on the road. If a driver is unhurt and safe and sound, they are not tired or fatigue… all those things bring value back to the customer.” Safety is part of the Volvo DNA and was a mantra repeated time and time again in Sweden and as a visit to the Volvo Museum demonstrated, the company has been at the forefront for many years. The state-of-the-art features that fit into the company’s modern-sounding philosophy of intel- ligent safety really have their roots in work done over decades by its research and development teams. The company that invented the three-point safety belt – on show at the museum – is now fusing sensors and processors to engineering as it looks to build on a legacy that has saved countless lives. While giving an overview of the company’s work in the field of ve- hicle autonomy, VP for productivity and new concepts, Mikael Karlsson, explains that the company is currently involved in pilot schemes in Sweden and Brazil that test how the next gen- eration of intelligent trucks behave in real life situations. On the horizon are self-driving trucks but the technology is years from being ready to be used on heavy vehicles in non-controlled environments like the mines and crop fields Volvo Trucks is testing in. The

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// construction business news me // August 2017 62 // Site visit most useful approach, for the moment, is to look at where the company can help fleet drivers in tandem with their trucks be safer and more efficient. He says: “The strategy is not to say in 2025 it will look exactly like this, but to start small in different areas. Sometimes failing maybe (but always) learning. We’re going into pilots with customers to explore both the technology and the social and business impacts. A mining applica- tion could work in the Middle East but we are trying to look at strategic areas where we think it makes and where we can grow.” Sasko Cuklev, director for customer solutions and new concepts, says: “A self-driving truck may not be what the customer needs and that’s why it is important to listen to the customer to find out what their needs are. From an industry standpoint, the main focus should be in increased productivity, safety and energy efficiency.” Mellquist re-joined Volvo Trucks to head its international operation in the Middle East, Africa, Asia, and Australia in 2016. She feels that tech- nological and legislative barriers are only two aspects that will shape the adoption of autonomous technology going forwards. Social and commer- cial acceptance will be fundamental, she argues. “When it comes to autonomous technology and you've seen our pilots that will grow step by step,” she says. “Autonomy may not be as involved in distribution as much as I thought when I started because a driver has a task in the truck for unloading and talking to customers. I (also) don’t think that society is ready yet.” At the head of Volvo Trucks’ devel- opment in safety is traffic and product safety director, Carl Johan Almqvist. During the event, Almqvist explains how the company has put together its own vision for zero accidents on the world’s roads through developing safer trucks and engaging with as many road users and stakeholders as pos- sible. While he readily admits achiev- ing that goal globally could be improb- able, he feels that the company must continue to aim for it if it is going to help lower the number of annual road deaths from 1.2mn per year. “The numbers are so large that we as human beings have a problem in understanding how big a number this,” he says. “That’s like ten large aeroplanes crashing every day or 3,400 people killed every day on the roads.” Almqvist has overseen the develop- ment of many of the features that are being released in the region, includ- ing its active safety systems such as the collision warning system with The refuse truck we are now testing continuously monitors its surroundings and immediately stops if an obstacle suddenly appears on the road.” Carl Johan Almqvist, Volvo Trucks

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construction business news me // August 2017 // www.cbnme.com 63 emergency brake system. It monitors the vehicles in front with the help of camera and radar technology and functions irrespective of whether it is sunny, misty, foggy, or dark. If there is a risk of collision, the driver is alerted via gradually escalating light and acoustic signals in the cab and on windscreen via a heads-up display. If the system does not detect a response from the driver, the truck automatically starts braking gently. However, if the driver still does not respond, the emergency brake is deployed until the vehicle comes to a complete standstill. After a further five seconds without any movement of the steering wheel or other reaction, the handbrake is automatically engaged - a safety measure designed to prevent the truck from rolling if the driver is in shock or unconscious. He says that the system goes beyond the current EU legislation which made it compulsory on heavy vehicles in 2015 – Volvo Trucks’ sys- tem is the only one that engages the handbrake, for instance. “It's great that the legislation is becoming stricter, but I still feel the legal requirements are too low,” he says. "For example, if you are driv- ing at 80 km/h when the emergency braking system is deployed, you need to cut your speed by far more than just 20 km/h to avoid a massive col- lision if the vehicle in front has come to a standstill.” Working in combination with other systems on the truck, he says, can help reduce risks in traffic, “but it is impor- tant to bear in mind that technology cannot do the job alone. A safe traffic environment requires active interaction between all road users. An experi- enced, attentive driver who handles their vehicle responsibly is still the best form of accident prevention.” That holistic approach is typified by Volvo Trucks’ work with national and local governments, law enforcement, and traffic agencies as well as schools on an international basis. In addition to experiencing how the trucks can help avoid rear-end collisions, the development of self-steering technol- ogy that intervenes to prevent head-on accidents and a raft of other features to improve driver awareness and visibility at the event, CBNME also learned how it was teaching children and adults on how to interact with commercial vehicles on the road. Its Stop Look Wave and See and Be Seen programmes aim to improve un- derstanding of how unprotected road- users and trucks can communicate in the traffic environment. “With the fast pace of today’s traffic, it is vital that as many people as possible are aware of the risks in order to avoid accidents and incidents,” Almqvist says. Refuse trucks that follows like a dog Together with Swedish waste management company, Renova, Volvo Trucks is currently testing and researching how automated vehicles can contribute to safer, more efficient refuse handling and create a better working environment for drivers. The automated systems being tested are in principle the same as those fitted to an autonomous Volvo truck operating in the Kristineberg Mine in northern Sweden since autumn 2016. Carl Johan Almqvist, traffic and product safety director, Volvo Trucks, says: “Driving a heavy commercial vehicle in an urban residential area with narrow streets and vulnerable road, users naturally impose major demands on safety, even when the vehicle’s speed doesn’t exceed a normal walking pace. The refuse truck we are now testing continuously monitors its surroundings and immediately stops if an obstacle suddenly appears on the road. At the same time, the automated system creates better prerequisites for the driver to keep a watchful eye on everything that happens near the truck.” The first time the automated refuse truck is used in a new area, it is driven manually while the on-board system constantly monitors and maps the route with the help of sensors and GPS technology. The next time the truck enters the same area, it knows exactly which route to follow and at which bins it has to stop. At the first stop with the automated system activated, the driver climbs out of the cab, goes to the rear of the truck, brings out the wheelie-bin, and empties it exactly the way the job is done today by operating the relevant controls. When the operation is completed, the truck automatically reverses to the next bin upon receiving the driver’s command. The driver walks the very same route that the truck takes and thus always has full view of what’s happening in the direction of travel. But why reverse instead of driving forward? Hans Zachrisson, strategic development manager at Renova, says: “By reversing the truck, the driver can constantly remain close to the compactor unit instead of having to repeatedly walk between the rear and the cab every time the truck is on the move. And since the driver doesn’t have to climb in and out of the cab at every start and stop, there’s less risk of work related injuries such as strain on the knees and other joints.” Reversing is otherwise a fairly risky manoeuvre since the driver may find it difficult to see who or what is moving behind the vehicle, even if it is fitted with a camera. In certain areas, it is not allowed to reverse with a heavy commercial vehicle for safety reasons, in others it is a requirement that a co-driver must stand behind the truck to ensure that the road is clear before the vehicle is allowed to reverse. The solution being tested is designed to eliminate these issues. Since sensors monitor the area all around the refuse truck, driving is equally safe no matter the direction in which the vehicle is moving. And if for instance the street is blocked by a parked car, the refuse truck can automatically drive around the obstruction provided there is sufficient space alongside.

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// construction business news me // August 2017 64 // site visit Regional importance While sales of commercial vehicles have fallen in the Middle East for all the major truck OEMs, it remains an important market for Volvo Trucks. It operates in 36 different markets in the region with the Middle East and East and North Africa, accounting for almost 4,500 trucks in 2016 out of its International division’s total sales of 15,831. Mellquist, hopeful of progress not only in the Gulf but also Iraq, Egypt, and Iran, says it is important to focus on the long term. “The sales are much smaller than they were last year for us for sure,” she says. “It is important to remem- ber that these are cyclical markets and I think that this will be the case for a couple of years but then you'll market. “The deal shows that people are trying to sustain and that not everything is down like the last recession. The situation might get better soon. “ Mohammad Sameer is hopeful that the standard feature set of the long-haul FH could soon be available beyond Saudi Arabia. The company he reveals is currently exploring how the benefits of the company’s safety features could be enjoyed elsewhere in the GCC. “We are having close discussions with government agencies to intro- duce these features soon,” he says. “It’s not something we are talking about from a legislation point of view yet, but we are involving gov- ernment agencies to use it; getting them to understand it.” be back on track. If you look at the curve in the long term, you will see that truck sales are actually growing in all these markets -that's why we would like to be sustainable and a partner on the road with them.” She adds: “It is the same as it is in every market. The trucking business comes back when the GDP starts growing as more and more logistics is done. Logistics normally grows more than GDP so if you can get country to start growing again then we will be there.” Last month the company celebrated the sale of 250 of its FH and FMX trucks to Saudi Arabian company, Al-Oasis. Mu- hammad Sameer, marketing and commu- nications in the Middle East says it could be a sign of better things to come in the I think with things such like Vision 2030 in Saudi Arabia, there are tremendous opportunities as we go along.” Helene Mellquist, Volvo Trucks Intl

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www.cbnme.com Driving profitability VOLVO’S I-SHIFT AUTOMATED MANUAL GEARBOX maximises uptime and makes your transports more efficient. Thanks to built-in intelligence, it quickly and automatically chooses the right gear. The result is less wear and tear, optimised fuel consumption and safer, easier and more comfortable driving. Or put differently, I-Shift makes transports with your Volvo trucks more profitable. For MORE INFORMATION ABOUT I-SHIFT please visit volvotrucks.com Volvo I-shift Gearbox

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// construction business news me // August 2017 66 HVAC Multi-disciplinary engineer- ing organisation, Al-Futtaim Engineering, has been ap- pointed an exclusive distrib- utor for York Air Condition- ers by Johnson Controls. The Al-Futtaim company’s air conditioning division will distribute the two- and three-star rated Emirates Authority for Standardisa- tion and Metrology (ESMA) compliant products with 12,000 to 36,000 BTU range to the retail-dealer’s seg- ment in the UAE. Dr Hayan Sayed, CEO of Al-Futtaim Engineering and Technologies, said: “We are extremely pleased to con- tinue our association with Johnson Controls. York Air Conditioners are known for their innovative design and user-friendly features that help save energy, ensure sustainability, and simpli- fy maintenance. With our strong service track record and the quality assurance of the York brand, custom- give our customers exactly what they need at very com- petitive prices. The air con- ditioners provide high ambi- ent cooling even at 52oC, a turbo mode for quicker cool- ing, low noise operation, a multi-speed fan that helps York Air Conditioners appoints Al-Futtaim Engineering as its distributor ers can be rest assured that they are getting a good quality product.” Rajesh Bhatia, general manager of Al-Futtaim En- gineering’s air conditioning division, said: “The York Air Conditioners allow us to satisfy various airflow re- quirements, a 24-hour timer that allows programmed start times, and easy maintenance and installation amongst other features that provide simplified operations and maximum comfort.” Global construction equipment manufacturer, Chicago Pneumatic, announced its winning a significant supply contract from a Kuwaiti company for supply of 100 CPLT V15 light towers for a key oil and gas project. Chicago Pneumatic operates in the GCC through its authorised distributor, General Transportation and Equipment Company (GTE), said the company in a statement. Three other dealers were also involved in the process, but GTE ultimately secured the deal. These CPLT V15 light towers will provide crucial illu- mination for an oil and gas construction project located in a remote area of Kuwait’s desert, the statement add- ed. Chicago Pneumatic said this was the largest order ever for its CPLT V15 light towers in the Middle East. Ejazul Hassan, the equipment sales manager for GTE, said: “We put forward the CPLT V15 because it is an ideal choice for projects requiring a large fleet of light towers. During the live demonstration, our client quickly realised the metal halide option would provide them with a combination of durability, easy mainte- nance, and outstanding value for money.” He added: “It’s compact and lightweight de- sign makes it really easy to move around. It’s also very safe to transport between different job sites, as the light tower can be moved with the mast in a vertical position.” Chicago Pneumatic secures Kuwaiti supply contract // Supplier News

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construction business news me // August 2017 // www.cbnme.com 67 MEP Carrier launched the new XPower variable refriger- ant flow (VRF) system and the AquaForce 30XV air- cooled screw chiller for the Middle East. UTS Carrier, a collaboration between United Technical Services (UTS) and the Carrier Corporation, is the primary means through which Car- rier operates in the UAE. The event held by UTS Carrier en- gaged an audience of greater than 200 attendees, who were given a thorough explanation of the new products. The new products are claimed to have a higher ef- ficiency and wider capacity range. The company appears to have designed it specifi- cally for the Middle East, as the XPower VRF is ideal for function in high ambient conditions, which can reach up to 54°C. In addition, the system also maintains a high- efficiency ratio (EER) of 14. Carrier unveils new HVAC system for the UAE customers an environmentally friendly nature, and claim the Aqua- Force 30XV offers a footprint that is significantly smaller on average versus conven- tional designs. With its op- erating envelope in ambi- ent temperatures of -29° to 55°C, it is suitable for a wide range of applications includ- ing schools, hotels, data cen- ters, offices and residential buildings. The AquaForce chillers with Greenspeed intelligence deliver supe- rior efficiency throughout its operating range to keep costs down. Mohammed Al Qaisi, gen- eral manager, UTS Carrier, said: “We are proud to launch these highly efficient and ver- satile products in the UAE. At Carrier, we are commit- ted to continually innovating and always listening closely to our customers to design and redesign our products to meet their needs.” AEG Power Solutions have been selected to provide AC and DC UPS to secure the power supply for a Polyeth- ylene plant (HDPE/LLDPE) and a Polypropylene plant (PP) owned by Oman Oil Refineries and Petroleum Industries Company (Orpic). Tecnimont selected a combination of AEG Power Solutions' Protect 8 UPS and Protect RCS recti- fier (specified as TPRe three-phase rectifier model), which have proven track records in securing power for critical industrial applications. AEG Power Solu- tions has also provided customised by-pass panels, as well as Ni-Cd batteries and moulded case circuit breaker (MCCB) boxes for battery protection. AEG Power Solutions provided its power supply expertise to Tecnimont during the technical project analysis and clarification, helping to finalise the project and to propose possible solutions. Paolo Mondo, Maire Tecnimont Group Procure- ment vice president, said: "Having started to build a relationship with AEG Power Solutions during the procurement process, we could see that they had the technical excellence and experience required – as well as the best product range. We were confident that AEG Power Solutions was the right choice to provide these mission-critical UPS systems.” Alberto Dall'Asta, managing director of AEG PS in Italy, says: "Orpic’s Liwa Plastic Industries Complex (LPIC) project – currently under construction in Oman - is a major project that places tough demands on the UPS and other electrical systems to operate in a harsh environment." Daniela Antenori, key account manager for Tec- nimont, said: "We are delighted that Tecnimont has recognised again how our industrial product range can meet its requirements for realising a reliable and flexible solution." AEG secures petrochemical power contract in Oman While the system has 12 vari- ous types of indoor systems, it remains user-friendly and can be installed with relative ease, a statement describing the new arrivals said. The firm also aimed to manufacture devices with

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// construction business news me // August 2017 68 // Editor's pick Oman has placed their tourism sector at the centre of their economic diversification programme in order to move away from oil revenue The key to the future Commercial and tourism-related infra- structure is expected to grow as a result of the Omani government’s attempts to diversify their economy away from oil and promoting tourism as a greater influence on the country’s economic needs. In a tactical move mirroring their oil- producing and exporting colleagues across the GCC, Oman has placed their tourism sector at the centre of their eco- nomic diversification programme. Recent project activity highlights the positive effects of such a bold move. In June 2017, it was announced that Damac International, a subsidiary of UAE-based Damac Properties, had won a contract to transform the Mina Sultan Qaboos wa- terfront in Muscat into a $1bn integrated tourist port and lifestyle destination. The scheme will be executed and put into action through a joint venture between the UAE-based firm and Oman Tour- ism Development Company (Omran). The project is set to contain a number of attractive features such as hotels, residences, and dining and retail facilities which all help provide a comprehensive and unforgettable experience for tourists that will, the government hopes, further boost the tourism centric economy that Oman is striving to attain. The commitment to the transfor- mation of the Muscat waterfront will occur in the context of an anticipated boom in tourism arrivals. A recent re- port on Oman’s tourism industry from BMI Research indicates that the total number of arrivals will reach 2.9mn by 2021, up from 1.85mn today. They further state that their positive outlook is in line with the policy aims outlined by the Omani government, which has placed boosting the number of tourists at the centre of its drive to diversify the sultanate's economy. The report, titled Industry Trend Analysis - Tour- ism Emphasis to Energise Construction Sector, added: “Projects like the Mina Sultan Qaboos waterfront are aimed at facilitating government goals such as increasing the share of gross domestic product (GDP) generated by tourism from 2.4% to 3.5% today - and we are seeing preliminary signs that the empha- sis on tourism-related investment is hav- ing its desired effect, with the number of tourists arriving in the country in 2016 growing by 14%.” Furthermore, the analytical report highlighted a number of upcoming projects, hotel, and commercial, that will uplift Oman’s tourism investment drive. It stated: “Golden Group Hold- ing has collaborated with Rotana to build a 250-room hotel in Muscat. The property, called Al Mouj Rayhaan by Rotana, will be located in the Al Mouj development, an integrated tourist complex comprising hotels, luxury residential properties, retail and dining facilities and a private yacht hub. Muscat National Development and Investment Company (ASAAS) has un- veiled plans to develop a 1.5 sqkm en- tertainment and leisure complex in Bar- ka that will feature a wildlife attraction, a waterpark, a theme park, an interactive Science and Technology Edutainment Centre, an equestrian centre together with hotels, a residential zone, and retail areas. The scheme's masterplanner is Singapore-based Surbana Jurong. The Omani government has signed a deal with local tourism project devel- oper, Muriya Tourism Development, to build a 47,999 sqm beachfront com- mercial city complex in Al Hail North, Seeb at a cost of $155.82mn-$207.76mn. The project, called the City Walk, will include a waterfront, hotel, restaurants, event centre, and 42 apartment units. Construction has started and is expected to be completed in five years.” Tourism-related infrastructure, in light of the variety of upcoming projects, has the scope and potential to become an integral facet of Oman’s economy. In addition to promoting tourism related infrastructure, the Omani government re- alises the need for ancillary infrastructure to support the rapidly growing tourism sector and accommodate the expected spike in tourist arrivals. This includes on- going work at the airport of Muscat.

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// construction business news me // August 2017 70 // Save the date Mark your calendar Save the date Infra Oman Muscat, Oman It is dubbed as one of the largest build- ing and construction expo in the Middle East and has been continuously defining the industry’s development for the last six years. Organised by Al Nimr International Exhibition Organisers, it is considered as the annual meeting place for indus- try leaders, suppliers, and buyers in the Sultanate. Infra Oman has proved to be an ideal starting point not only for the local companies, but also for foreign entities that are more determined to be part of Oman’s growing market. Saudi Build 2017 Riyadh, Saudi Arabia Saudi Build has been Saudi Arabia’s largest construction trade exhibition, attracting thousands of international manufacturers, exporters and busi- nessmen, as well as tens of thousands of regional engineers, importers and industry professionals to connect and engage with the latest technology that the Kingdom’s largest sector has to of- fer. The exhibition will have more than 870 local, regional, and international. 2nd Annual GCC HVAC Summit Dubai, UAE The event plans to have all stakehold- ers under the energy program across the GCC under one roof. The event would focus on environment policy and plan- ning, sustainable development, HVAC technologies, challenges and opportuni- ties in the sector, sustainable options – clean energy and regulations, and many more topics. Organised by Gulf Learning, this summit will showcase the prowess and potential of HVAC technologies that will secure air conditioning and power consumption to its most effective level, and organisations in the region and glob- ally, who are intending to expand their portfolios into emerging markets such as district cooling, energy, and power ef- ficiency and sustainability. BUILDEXPO Tanzania 2017 Dar Es Salaam, Tanzania BUILDEXPO is Africa’s premier and most trusted building and construction trade- show. The latest edition will offer the best global manufacturers and exporters a platform to enter the world’s most promis- ing market of the millennium – Africa. The trade event will cover a variety of sectors in construction, ranging from building and construction material, aluminium steel pro- files, granite, ceramics and pipes fittings to mining, tools and hardware. October October November August 9-11 23-26 14-15 10-12

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Mercedes-Benz ServiceSolutions. Made for ME. Good for the fleet, even better for business. The Actros is the proven asset to enhance your business. It has to defy extreme temperatures, fine dust, heavy loads and long driving on challenging roads. Hence it is essential to give your heavy worker the service it deserves. Mercedes-Benz ServiceSolutions provides you with tailor-made packages giving you peace of mind – at a fixed cost over the ownership period. You have three attractive Mercedes-Benz ServiceSolutions packages to choose from: • BestMaintenance: Transparent and plannable maintenance costs. • SelectPlus: Convenient maintenance and extensive protection against unexpected costs. • Complete: A complete service solution for utter peace of mind. Find out more about the different Mercedes-Benz ServiceSolutions for your Actros on our website or contact your nearest authorized Mercedes-Benz General Distributor. Mr. Farooq Al-Fakih Dep. General Manager, ALDREES Comp. Fleet of 1,326 trucks, Saudi Arabia “[The Actros] contributes to the achievement of our objectives through its outstanding performance, low cost of maintenance compared to other models, and lack of malfunctions (…).” Trucks.MercedesBenzMENA.com