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THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS August 2018 P36 - Binghatti Developer’s young chief on the company’s success A quick look at the upcoming Construction Innovation Awards 2018 CIA 2018 Dubai raises retail bar A tech-driven retail destination in the making at Dubai Creek Harbour
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construction business news me // August 2018 // www.cbnme.com 3 Ed Note News Comment Hepher Associates’ Kieran Chauhan gives us an insight about his journey in the Middle East construction industry Comment Shaher Mousli from AMPG talks about the investment opportunities in Sharjah Comment Rob Jackson from RICS highlights the importance of enabling best practices in the construction industry 8 12 24 26 28 // contents August 2018 // Issue #42 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 2018 6 S U B S C R I B E subscriptions@bncpublishing.net CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Sales Director Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 Sales Manager Vishvanath Shetty vish@bncpublishing.net +971 52 119 3077 Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 Editor Paromita Dey paromita@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Marketing Executive Mark Anthony Monzon mark@bncpublishing.net Photography Hayder Al-Zuhairi PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Construction Business News ME contact sales@bncpublishing.net T +971 50 440 2706 All rights reserved © 2015. Opinions expressed are solely those of the contributors. Construction Business News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Construction Business News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Construction Business News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by UPP Face to face Binghatti Holding chief, Muhammad BinGhatti, talks about the developer’s successful market run in the UAE Cover Story Dubai Holding and Emaar unveils Dubai Square, a tech- driven retail destination in Dubai Creek Harbour Interview Safdar Badami, MD, Al Muqarram Industry, talks about the future plans for the company CIA 2018 A teaser to the upcoming Construction Innovation Awards 2018 Case Study The Address Downtown hotel in Dubai reopened two years after the devastating fire Editor’s Pick Diary 32 36 42 44 48 60 62
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// construction business news me // August 2018 8 // Editor's note Heat wave It’s summer time in the UAE and people are already feeling the sweltering heat of the sun! And so, has the construction labour market felt the heat in Saudi Arabia with a mass exodus of expat workers recently. With more than 221,000 foreign workers leaving Saudi Arabia between the Q4 of 2017 and the Q1 of 2018, the kingdom’s construction sector has been the worst hit, said a recently released report. All sectors saw a drop in the number of foreign workers, with construction los- ing the biggest number of expats (about 126,000) along with 18,000 Saudi nation- als who left the sector in Q1 2018. Trade, which includes wholesale and retail activi- ties, came second, losing around 53,000 for- eign workers. The total number of foreigners in the Saudi Arabia labour market declined by around 796,000 since the start of 2017, with about 221,000 leaving the market dur- ing the Q1. Also, according to the report, the num- ber of foreigners leaving the market in Q1 2018 was not equally met by the number of Saudis hired. It was found that the biggest share of foreign workers who have left the market in Q1 2018 were receiving less than SAR1,500 per month on an average. These workers range between construction, trade, education, and agriculture sectors. Currently the most challenging thing that the Saudi labour market faces is the creation of new jobs for its nationals. As the previously oil-dependent economy undergoes structural changes, creation of new jobs is touted to be quite difficult. However, the country is trying to diversify to other avenues including tourism, entertainment, and the non-oil sectors, attract- ing foreign investments over the long-term. editor’s note Paromita Dey Editor paromita@bncpublishing.net @paromitadey1 linkedin.com/in/paromita-dey
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// construction business news me // August 2018 12 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 Contract Update // Property developer ARADA has awarded the main con- struction contract for the first four Areej Apartments blocks, within Phase 1 of Aljada, to Modern Building Contracting Company (MBCC). Mobilisation will take place onsite in the coming weeks, with full construction set to commence by the end of July. The buildings, which contain the first homes to be built within the 223ha proj- ect, are scheduled to be com- pleted by the end of 2019. In total, over 250 units will be built across the four Areej Apartments blocks. HE Sheikh Sultan bin Ahmed Al Qasimi, chairman of ARADA, said: “This award is an important milestone for Aljada as we move into the development phase of this iconic and transformational project. We’re pleased to be partnering with MBCC and look forward to working closely with them to help de- liver Aljada’s first homes.” The contract award is the latest announcement at Al- jada, the AED24bn mixed-use lifestyle destination located on the last large plot of un- developed land in the heart of Sharjah. In April, ARADA announced the launch of East Village, a 15-building creative community target- ing the younger generation, which constitutes Phase 2 of Aljada, while also confirming that enabling work onsite had begun. Also, in April, ARADA signed a management agree- ment with Emaar Hospitality Group to bring three new ho- tels, Address Aljada Sharjah, Vida Aljada Sharjah, and Rove Aljada to the megaproject. In March, ARADA an- nounced that Zaha Hadid Architects had won a global competition to design the Central Hub, the focal point of Aljada, and a new leisure and entertainment destina- tion for the UAE. The first phase of the Central Hub will be completed by the end of this year. In January, the de- veloper also confirmed that the global engineering giant, Jacobs, had won a key con- tract to design the infrastruc- ture for the project. ARADA awards first construction contract for Aljada Phase 1
construction business news me // August 2018 // www.cbnme.com 13 Real estate Abu Dhabi-based Aldar Prop- erties provided its latest quar- terly update on its projects under development across key destinations in Abu Dhabi. On Yas Island, Aldar has begun the handover process for the first 300 homes on West Yas, the island’s first villa community. The com- munity retail plaza, which includes the first Spinneys supermarket on Yas Island, is now open. Main construction work is progressing well on Yas Is- land’s two waterfront apart- ment communities with concrete and waterproofing well underway at Water’s Edge and cement and block- work advancing across all five apartment buildings and beach houses at Mayan. At Yas Acres, Aldar’s flagship golf and waterfront devel- opment, construction at all 652 villas launched to date are in various stages of com- pletion while infrastructure works including irrigation, gas, potable water pipes, Aldar on track with its Yas, Saadiyat, and Reem Island projects Kuwait has awarded a KWD18.6mn contract for the development of its new passenger terminal (T2) at Kuwait International Airport, reported news agency Kuna. Al Naboodah Construction Group, a subsidiary of ANGE, celebrated achieving five million man hours without a lost-time accident at its Dubai Creek Harbour site. Dubai-based developer, Azizi Developments, is offering competitive pricing along with attractive payment plans for its properties in Al Furjan and Palm Jumeirah. Jumeirah’s newest property, the 200-room Al Seef Hotel by Jumeirah, is set to open in September 2018 on the banks of Dubai Creek. // Bitesize news are making good progress. On Reem Island, Meera is nearing completion ahead of the scheduled handover later this year with all clad- ding and glazing work now substantially complete. The elevators are in the testing phase, while all internal car- pentry and ironmongery in advanced stages of fixing. At The Bridges, a six-building development launched in April 2017, the first phase of the development has ad- vanced to the ground floor with the second phase pro- gressing well following the completion of piling work. Mamsha Al Saadiyat, a 1.4km mixed-use project lo- cated at the Saadiyat Cultural District, is on track to be com- pleted and handed over in 2019 with cladding, glazing work, and promenade con- struction all underway. The retail units are in final stages and are being prepared for leasing with show apart- ments ready over the upcom- ing quarter. Upon comple- tion, Mamsha Al Saadiyat, meaning ‘Saadiyat Walk’, will offer luxurious beach-front residences with access to a diverse mix of retail, dining, and entertainment offerings. Engineering and structural work is now substantially complete at Jawaher Saadi- yat, an exclusive gated com- munity on Saadiyat Island, with finishing and mechani- cal, electrical, and plumbing (MEP) works making good progress. Jawaher Saadiyat comprises 83 luxury four- bedroom townhouses and four to six-bedroom villas, situated in a prime location overlooking the region’s first championship beachfront golf course, Saadiyat Beach Golf Club. In Al Ain, expansion and renovation work at Al Jimi Mall is moving into its final stages with fit-out works on- going for a number of ten- ants, restaurants, and the eight-screen VOX cinema. The opening of the new ex- tension will be later this year.
// NEWS // construction business news me // August 2018 16 A lot of our business plans in 2018 will focus on productivity, innovation, and efficiency.” Hamish Tyrwhitt, group CEO, Arabtec Holding Construction Khazaen Economic City (KEC), a master development project in Oman, has appointed Atkins, a member of the SNC-Lavalin Group, as a lead consultant for Khazaen’s master planning, de- sign, and supervision work for OMR2.6mn. The award of the contracts comes after months of in-depth evaluation and discussions with Atkins appointed consultant for Khazaen Economic City 500 each of the shortlisted firms, re- ported Oman Observer. Eng Kalat G Al Bulooshi, chairman of KEC, said: “We are delighted to appoint At- kins as the lead consultant for Khazaen. This is a dem- onstration of our approach of entering partnerships with global firms with a proven track record in delivering truly outstanding projects and also implementing true In Country value.” Atkins’ scope of work in- cludes full consultancy ser- vices for the integrated urban planning of the city cover- ing 5,150ha, detailed master plan, environmental assess- ment, sustainability assess- ment, engineering designs for infrastructure and utilities, and preparation and evalua- tion of construction tenders for various infrastructure work of the city. Al Bulooshi added that the contract is for five years and can be extended for two ad- ditional years upon mutual agreement. The priority will be on completing the engi- neering and design work of about 500ha area related to the first phase of the logistics and industrial area, the dry port, the truck terminal proj- ect, the central fruit and vege- tables market, and the central auto market in addition to the head office of Khazaen. // In numbers Homes built by Mohammed bin Rashid Housing Establishment for Q3 2018. Top Five Locations for Apartment Sales in Q2 2018 (Off-plan) Source: Cavendish Maxwell Mohammed Bin Rashid City Business Bay Jumeirah Village Circle Downtown Burj Khalifa The Lagoons 800 700 600 500 400 300 200 100 0 731 648 366 307 281
construction business news me // August 2018 // www.cbnme.com 17 “One of the contributing factors to escalating numbers of disputes in the region is the impact continued low oil prices. ” Rob Jackson, RICS “I am delighted to be joining the Raysut Group at such an exciting time in the company’s development. ” Ashley Bryan, Raysut Cement “We are thankful to our shareholders for their support and trust in us. ” Mohamed Alabbar, Emaar Properties // They said... Real Estate UAE-based developer, Azizi Developments, has appointed Majed Hilal Contracting to commence development of Phase 4 for its flagship project in Meydan One, Azizi Riviera, with construction commenc- ing from the end of July 2018. The contractor has been ap- pointed for a value of AED- 572mn to construct 11 canal- side buildings that will make up over half of all develop- ments in Phase 4 of Azizi Riviera. Azizi Riviera Phase 4 boasts a total of 4,753 units Azizi awards AED572mn deal for Riviera buildings consisting of 3,141 studios, 1,261 one-bedroom, 267 two- bedroom, and 84 three-bed- room apartments. Mirwais Azizi, chairman of Azizi Group, said: “As a construction-driven develop- er, we continue to progress quickly with Azizi Riviera, one of our most ambitious projects to date. We recognise a growing interest in Dubai’s real estate market – and par- ticularly in buying off-plan – and aim to match that with our hallmarks of timely de- livery, superior quality, and value for money.” Azizi Riviera is the flagship project of Azizi Develop- ments and the architecture, while drawing inspiration from the French Riviera life- style, will also contain ver- satile and contemporary el- ements. Outdoor recreation and proximity to the busi- ness hub of Dubai and other leading attractions, includ- ing the Meydan One Mall and the Meydan Racecourse, further contribute to making Azizi Riviera a sound return on investment. A key feature of the Azizi Riviera development is a mega integrated retail dis- trict which will consist of high-street bridge brands, leisure, and entertainment options. The development, on the banks of the Dubai Canal, will also offer access to long paved pedestrian paths and water transport, yachting facilities, and a proposed marina, among other attractions. Dubai has retained its position as the Middle East and North Africa (MENA) region’s most transparent real estate market with a range of new government initiatives and an increasingly dynamic proptech industry pushing the emirate up in the global rankings. According to the JLL Global Real Estate Transparency Index (GRETI), Dubai was among the top three improvers globally in the ‘Semi-Transparent’ category and moved up the rankings eight places to 40 out of 100 markets covered in 2018 (from 48 in 2016). The emirate has recorded continuous progress and sits on a par with top-tier cities in countries including China (33), Russia (38), and Mexico (39). Craig Plumb, head of research, MENA at JLL, said: “Our research shows there is a clear relationship between the trans- parency of real estate markets and the level of investment they attract. One of the key objectives of the Dubai Land Department is to attract more invest- ment and the government have there- fore launched a number of initiatives to improve transparency and the quality of information available to real estate inves- tors. If all these initiatives are imple- mented, then we would expect Dubai to improve further in the global rankings over the next two years.” Dubai remains MENA’s most transparent property market
// NEWS // construction business news me // August 2018 18 Construction Samana Greens project on track for completion Top 5 Web Stories Dubai-based real estate developer, Sa- mana Developers, said its AED75mn residential project Samana Greens is on track with the contractor on ground completing 10% of the construction works in 100 days. Samana Greens – a freehold project – consists of 131 residential units, com- prising studio to two-bedroom apart- ments. Located close to the Miracle Gardens in Arjan area, Samana Greens will be easily accessible through two major expressways – Al Khail Road DLD records healthy transactions Dubai Land Department (DLD) signed a strategic partnership with Dubai Properties (DP), a member of Dubai Holding, to promote Dubai’s real estate sector. Azizi offers payment plans ARADA awards construction deal Meraas launches Hatta projects MAF completes redevelopment 1 2 3 4 5 www.cbnme.com and Mohammed Bin Zayed Road – and gives its residents easy access to the major attractions in Dubai. Samana Greens is being developed as per the green building codes with LEED certification utilising best practices – grey- water treatment to convert it into irriga- tion water, use of solar energy/panels to lower electricity consumption, use of green appliances, and sufficient spaces for greenery and moving. The green and sus- tainable development will complement Dubai’s vision for sustainable projects. // The big Picture
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// NEWS // construction business news me // August 2018 20 Real estate Oman Tourism Development Company (Omran) and Ma- jid Al Futtaim (MAF) have entered a partnership to de- velop an OMR5bn mixed-use community in Muscat. The joint venture will see the development of a vibrant mixed-use community that will serve as the new urban centre for Muscat. This new partnership plays a major role in Oman national eco- nomic diversification agenda and reflects Omran’s strate- gic role as a catalyst of in- vestment that forges solid partnerships with trusted de- velopers like MAF to create sustainable urban destina- tions and significant socio- economic benefits to the sul- tanate, said a statement. The new mixed-use com- munity is located in the western area of Madinat Al Irfan and spans over 450ha. The joint venture project in- Omran, Majid al Futtaim to develop OMR5bn Muscat project vestment value is estimated at OMR5bn over a period of 20 years and is anticipated to create more than 30,000 di- rect and indirect jobs in the country. Centrally located in Muscat’s urban corridor, the development will become the gateway to Oman, cre- ating a modern downtown for residents, businesses, and visitors. Dr Ali bin Masoud Al-Su- naidy, chairman of Omran, stated: “The development of Madinat Al Irfan is a great ad- dition to Muscat and reflects the vision of His Majesty Sul- tan Qaboos bin Said to di- versify the Omani economy. The overall scale of the proj- ect is unprecedented and directly aligns with the gov- ernment’s vision to invest in sustainable developments to strengthen and diversify the economy of Oman.” Dubai Land Department (DLD) has re- vealed that real estate transactions in Dubai for the first half of 2018 (H1 2018) reached AED111bn. According to the report issued by DLD’s Department of Real Estates Studies & Research, H1 2018 recorded a total of 27,642 transactions, 18,191 sales worth about AED40bn, 7,668 mortgage transac- tions worth over AED57.6bn, and 1,783 other transactions valued at AED13.4bn. HE Sultan Butti bin Mejren, direc- tor general of Dubai Land Department, commented: “The strategic decisions launched by the government are in line with the vision of HH Sheikh Moham- med bin Rashid Al Maktoum, Vice Presi- dent and Prime Minister of the UAE and Ruler of Dubai, and have had a significant impact on sustainable growth and on strengthening the competitiveness of the national economy. Granting investors a UAE residency visa for up to 10 years and reducing government fees included in previous initiatives will be the most important incentives for economic growth in the emirate, as they will have a positive impact on reducing business costs and will support Dubai’s position as one of the best investment destinations in the world.” Regarding the size of the investments, the report revealed that during H1 2018, the Dubai real estate market recorded 19,371 investments through 15,659 in- vestors, totalling AED37bn. UAE nationals topped the list with 2,986 investments worth AED6.8bn, while Indian nationals ranked second — with investments upto AED5.9bn through 3,218 investments — followed by Saudi Arabians with invest- ments worth almost AED3.7bn through 1,415 investments. DLD records AED111bn transactions in H1 2018
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// NEWS // construction business news me // August 2018 22 Real estate Luxury developer Emaar announced a landmark de- velopment that will further strengthen UAE-China rela- tions, coinciding with the historic visit of President Xi Jinping of China to the UAE. To honour Chinese expatri- ates in the UAE and further bolster business ties with Chi- na, Emaar will develop the Middle East’s largest China- town within the retail district of Dubai Creek Harbour, its 6sqkm mega-development. The retail precinct will oc- cupy a central location with- in Dubai Creek Harbour – a destination which will be home to a new icon, Dubai Creek Tower, and encompass vibrant lifestyle elements. Further strengthening Emaar’s outreach to China, the company also announced that it will open three dedicated Emaar to build Middle East’s largest Chinatown at Dubai Creek Harbour pavilions in China – Beijing, Shanghai, and Guangzhou. The three offices will promote tourism, education, trading, and investment between UAE and China. In a third significant an- nouncement, Emaar will expand its premium luxury hotel and serviced residenc- es brand, Address Hotels + Resorts, to China. Discus- sions are ongoing to de- velop and operate Address branded hotels in key cities in the country. Mohamed Alabbar, chair- man of Emaar Properties, said: “The visit of Chinese President Xi Jinping to the UAE is historic and will fur- ther strengthen UAE-China relations, underpinned by initiatives such as the UAE- China Week announced by HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai. The development of the new Chinese retail and life- style district at Dubai Creek Harbour – as well as Emaar’s expansion into China, both in property and hospital- ity – highlight our commit- ment to the country, and our focus on contributing to the strength and success of UAE-China relations.” UAE conglomerate Majid Al Futtaim has completed major earthmoving work for the first phase of its new flagship Dubai community, Tilal Al Ghaf. The grading works cover around 110ha of the 300ha site. These include excava- tion for Lagoon Al Ghaf, the community’s landmark swimmable crystal lagoon, and The Hive retail and leisure area that will form the heart of Tilal Al Ghaf, and site preparation for around 550 villas. In ad- dition, earthworks included formation of temporary access roads to the site, com- prising the Sales Centre and Show Village. In total, earthworks have excavated around 1.6 million cubic metres of rock and soil from the site. Around one million cubic metres of that has been reused as fill, creating level ground so construction can begin. Hawazen Esber, CEO of Communities at Majid Al Futtaim – Properties, said: “As a developer, Majid Al Futtaim has estab- lished a proven track record of creating landmark destinations with the highest quality standards. The completion of Tilal Al Ghaf’s first phase earthworks ahead of schedule is a key milestone towards wel- coming our first visitors and, ultimately, our first residents onsite to experience our mixed-use lifestyle offering.” The community Sales Centre, Show Village, and parts of Lagoon Al Ghaf and The Hive are expected to be active onsite by Q4 2018. Majid Al Futtaim launched Tilal Al Ghaf, its new flagship mixed-use community in Dubai, in April 2018, representing an AED14bn investment over the next 10 years. The community will feature four neighbourhoods, each having own unique character, with the Serenity and Harmony areas the first two offered as part of the launch phase. Earthworks completed for Majid Al Futtaim Tilal Al Ghaf project
construction business news me // August 2018 // www.cbnme.com 23 The Sustainable City, the Middle East’s first fully operational sustainable com- munity, has adopted B100 biodiesel to fuel the construction of the new build- ings in Phase 2 including Fairgreen In- ternational School, Hotel Indigo, and the innovation centre. The renewable fuel alternative is manufactured from the used cooking oil consumed by the restaurants at the community plaza and will allow The Sus- tainable City to reduce its carbon foot- print by up to 150 tons of carbon dioxide per year during the construction period. Faris Saeed, CEO of Diamond De- velopers — the company behind The Sustainable City — commented: “As The Sustainable City continues to grow, we are pleased to be bringing our construc- tion methods in line with our sustainable philosophy. B100 biodiesel minimises nearly all forms of air pollution and particularly greenhouse gases, so while protecting the environment, it will also allow us to maintain the pure, clean, and untainted environment that our residents enjoy at the community. By switching to B100 biodiesel, we are taking a new step in our ongoing strategy to explore and adopt sustainable solutions at The Sustainable City.” The Sustainable City’s B100 biodiesel is manufactured from used cooking oil and produced at Neutral Fuels’ bio-refin- ery in Dubai Investment Park. Compared to conventional gasoline and petroleum diesel, B100 cuts harmful emissions such as carbon monoxide by 50%, polyaromatic hydrocarbons by 90%, nitrogen oxides by 95%, and particulate matter by 99%. B100 diesel is non-hazardous, which minimises occupational risk, and is also sulphur free and 100% biodegradable, meaning it leaves no toxic residues. It requires no engine modifications and its high lubricity, combined with its excel- lent cleaning properties, make it the ideal sustainable alternative to conven- tional diesel. Dubai’s The Sustainable City reduces carbon footprint Construction Al Naboodah Construction Group (ANCG), a subsidiary of Al Naboodah Group Enterpris- es (ANGE), has won a number of new contracts valued at over AED750mn recently. The contracts include con- struction of new emergency services buildings; roads and street light construction and utilities installation for a resi- dential development; con- struction of a new corporate headquarters for a leading airline; and four substations for DEWA to accommodate the growing demand from new developments. Three of the four substa- tions for DEWA are contract- ed to ANCG through Mitsubi- shi Electric Corporation and are located in the communi- ties of Wadi Al Safa, Al Mam- zar, and Warsan in Dubai. The fourth substation will be delivered in partnership with Siemens and will service Al Naboodah Construction bags AED750mn worth new contracts the Dubai South – Jebel Ali neighbourhood. Work on the substations is scheduled to begin this month and com- plete early in 2020. Another contract was signed to execute infrastructure works in the greater Meydan area and entails the construc- tion of roads, landscaping, and the installation of utili- ties. The corporate HQ com- plex ANCG is constructing includes a 46,700sqm office building, utility buildings, car parks, boundary walls, and infrastructure. The fast track project is due for completion by the end of next year. ANCG will construct a dedi- cated fire station, ambulance station, and police station in a developing precinct with contracts that include fit-out and MEP. Senan Abdullah Moham- med Juma Al Naboodah, ANCG managing direc- tor, said: “Al Naboodah’s long history of construc- tion in the UAE, as well as our unique business model which includes being self- sufficient and providing our own asphalt, concrete, MEP, plant and equipment, makes us highly competi- tive in the industry. For 60 years, the company has fo- cused on delivering excel- lence in execution and has been instrumental in con- structing some of the UAE’s most iconic projects.”
// construction business news me // August 2018 24 I have always had a strong ap- preciation for buildings and architecture, from admiring the way in which high-rise buildings are erected to how megaprojects such as The Palm Jumeirah in Dubai was created. My journey into construc- tion was unorthodox as most of my experience post secondary school was heavily focussed within the IT sector, so much so, I even studied the same for one year at University. Prior to commencing the second year of my IT degree, it was evident to me that I had no desire to pursue a career in that sector and therefore within days, I transferred to a degree in Quantity Surveying and Commercial Manage- ment. I felt this not only fed my passion for how buildings were constructed, it also best suited my aptitudes. My inspiration to commence a career in the same stemmed from my admira- tion for buildings/architecture, passion for law, and an aspiration to be part of the process of creating extraordinary built assets for the present and the next generation. From experience, I strongly believe, it does not matter what age you are and/or what stage you are at in your present career; if you truly have a passion in construction, it is one of the very few industries that welcomes non- construction professionals. Importance of professional accreditation Attaining professional accreditation with a professional institution dem- onstrates to others that the person possesses the knowledge, ability, competence, professionalism, and ethical values to a high standard. Since relocating to Dubai in 2015, I have recognised there are several profes- sional institutions available and with so many to choose from, it can be difficult to decide which one to join. Therefore, I felt it would be useful to provide some points to consider when selecting a professional organisation to be affiliated with: • Presence – a professional body with a global presence demonstrates reach and is better placed to act for third par- ties and support its professionals from a national to an international level. • Establishment – a long established professional body has evidently gone through the motions of con- stantly developing itself over sev- eral years and showcases credibility to third parties. • Assessment criteria – the more rigor- ous the assessment criteria are, results in only the top calibre of individuals becoming members and, as a result this, upholds integrity and demon- strates the high level of professional and ethical standards the professional body stands for. • Innovation – the extent of involve- ment in innovation to help counter the challenges the industry is facing and how the organisation sup- ports the way in which the industry moves forward, e.g. this could be by publishing global standards, detailed guidelines, mobile applications, etc. • Training – does the professional institution offer training and educa- tion to its members in the form of courses, lectures, workshops, or online resources? The future of the industry is the next generation; hence, support and training need to be readily available to ensure the profession keeps moving forward in a positive direction. Middle East construction It is evident that the Middle East con- struction industry has been significantly impacted by the fall in oil prices which we are still feeling the effects of to date. The reduction in oil revenue continues to impact on the number of contracts awarded and according to MEED, the year 2017 was the worst year for contract awards within the GCC con- struction industry since 2012. With a reduced number of project opportuni- ties, this has increased the competition Kieran Chauhan, partner at Hepher Associates Lim- ited (HAL), gives us an insight into his journey and thoughts on the Middle East construction industry Inspire the next // Op-Ed
construction business news me // August 2018 // www.cbnme.com 25 and Oman will have implemented the tax to generate further revenue. We are also seeing a number of recurring trends for disputes within the industry such as: • Delayed payments due to funding constraints; • Incomplete/inconsistent contract documentation; • Changes to the scope of work post contract; • Onerous contract conditions; • Poorly drafted / unsubstantiated claims. For professionals looking to either enter the industry or become chartered with an institution, especially in competitive re- gions such as the Middle East where pro- fessionals from all around the world are relocating to work, I would advise them to closely consider the points discussed earlier. Furthermore, for young profes- sionals entering an industry with no prior experience can seem daunting. However, professional institutions such as the RICS and CIArb allows its young members to be part of a global support network of professionals to make the transition easier. With the backing of a recognised university degree, support from your peers, and affiliation with a globally recognised professional institution such as the RICS and CIArb, professionals can excel in the construction industry, have the ability to travel the world, and also be afforded opportunities to work on truly remarkable projects. It’s a privilege to be awarded Fel- lowship at RICS at the age of 28 and to be part of a global network of profes- sionals that share a common ethos and objectives. Since attaining Membership with the RICS (MRICS), I have continu- ously delivered back to the organisation and the profession as I strongly believe it is important to circulate knowledge and give guidance wherever possible to benefit third parties. The Fellow- ship will undoubtedly have a positive influence upon my career progression opportunities due to the internationally recognised status. The credentials speak for itself and showcases credibility amongst my professional network. and, so we have seen in recent years, many contracting organisations commit- ting to more onerous contract condi- tions, unrealistic project timescales, and reducing their contract prices in order to secure work which inevitably causes disputes along the way. However, the year 2018 looks to be more optimistic with oil prices increas- ing and the announcement of regional mega projects such as Abu Dhabi, Dubai, and Saudi Arabia’s Vision 2030. These megaprojects coupled with ongoing projects such as Dubai Expo 2020 will undoubtedly, significantly increase construction activity. Furthermore, the recent introduc- tion of VAT will also help fund the construction economy especially for the UAE and Saudi Arabia both of which introduced VAT from January 1, 2018, and from 2019, Bahrain, Kuwait, With the backing of a recognised university degree, support from peers, and affiliation with a globally recognised professional institution, professionals can excel in the construction industry, have the ability to travel the world, and also be afforded with opportunities to work on remarkable projects.”
// construction business news me // August 2018 26 S harjah, popularly considered the cultural capital, is the third largest emirate in the UAE. The emirate plays an impor- tant cultural and economic role in the region. Sharjah is home to a number of commercial, educational, and cultural institutions, and enjoys a unique loca- tion since it overlooks the Persian Gulf on the West and the Gulf of Oman on the East. The discovery of oil resulted in an economic boom; however, the emirate’s leadership was focused on establish- ing a non-oil economy quite early on. This resulted in development of a diversified industrial base, highlights Oxford Business Group (OBG) in its 2018 Sharjah Report. The four largest sectors that drives Sharjah’s economy are manufacturing, accounting for ap- proximately 16.9% of GDP; real estate with 13%; wholesale and retail trade with 12.1%; and financial services with 10.3%. The prudent model of a diversi- fied economy, with no single sector comprising more than 20% of Sharjah’s GDP, ensures that oil price volatility has moderate effects on the local economy. According to Sharjah Update, aviation, construction, healthcare, manufacturing, real estate, retail and distribution, and tourism were the top contributors to Sharjah’s economy last year. OBG’s Sharjah Report 2018 highlights that the emirate has had propelled success in developing its industrial and manufacturing sec- tor through a network of free zones and industrial zones that continues to develop and expand, and is one of the main industrial bases of the UAE. As per the information in Sharjah Update, 44% of AED22.1bn govern- ment budget has been allocated to economic development, Sharjah is expected to continue investing strategi- cally in developing key industry sec- tors through 2018. A key attraction for investors looking towards Sharjah has to be the network of free zones. Hamriyah Free Zone (HFZ), adjacent to Hamriyah Port, and the Sharjah Airport International Free Zone (SAIF Zone), next to the airport, offer 100% foreign ownership among many other advantages. Both zones are industry focussed. Sharjah Publishing City is a 40,000sqm publishing business-focussed zone that was inaugurated in 2017. A large print- ing facility is due to open this year to be followed by a second phase the follow- ing year. Sharjah is an important destina- tion for the publishing industry in lieu of hosting the annual Sharjah International Book Fair. UNESCO designating the emirate as the 2019 World Book Capital offers an array of opportunities for the industry as a whole. Other free zones announced by the government and under various stages of development are Sharjah Media City, which will focus on the media and cre- ative industries, as well as innovation more generally, Sharjah Healthcare City, and the Sharjah Research, Technology, and Innovation Park. The zone will aim to leverage research activities at nearby universities, hosting a range of R&D-ori- ented start-ups and businesses, which are definite steps in the right direction for a progressive city. Besides developing specialised, investor-friendly zones, government policies are aimed at fostering private- sector growth, and the emirate’s diver- sification has helped ensure continued investment into the economy. In 2016, Sharjah Investment and Development Authority and the American University of Sharjah (AUS) established the Shar- jah Entrepreneurship Centre, known as Sheraa. It offers newly formed start- ups a 12-week accelerator programme, equity-free funding of up to $10,000 and rent-free office space. In 2017, government-backed initiatives propelled global firms, SMEs, and local start-ups to set up in Sharjah which in turn created an influx of investment across the robust sectors.” Shaher Mousli, CEO, Arthur Mackenzy Properties Group (AMPG), talks about the growing investment opportunities in the UAE’s third largest emirate, Sharjah Path to success // Op-Ed
construction business news me // August 2018 // www.cbnme.com 27 In 2017, government-backed initia- tives propelled global firms, SMEs, and local start-ups to set up in the emir- ate which in turn created an influx of investment across the robust sectors in Sharjah’s economy. Robust real estate sector There has been a surge in construc- tion projects in Sharjah since late 2017 and this can be partly attributed to the increased budgets in infrastruc- ture development in line with general upliftment in the regional economy. In addition, Sharjah has an annual popu- lation growth rate between 6% and 7% which directly translates into a healthy demand for residential properties. According to OBG, ‘much of the new work is addressing previous shortages in areas such as gated and lifestyle communities, high-end offices and retail premises, and more mod- ern industrial estates’. Traditionally, buying and renting residential prop- erty in Sharjah has been pegged to Dubai. People move between the two emirates depending on the economic climate. The emirate has offered af- fordable housing option for people working in Dubai. Sharjah Real Estate Registration Department reports that it registered a 46% increase in the number of real estate sales transactions during the first six months of 2017 and announced a 37.2% increase in the value of real estate transactions made in the third quarter of last year. A significant facelift is also underway for the retail and leisure sector to meet the rising demand of residents and investors in the emirate. You may recall that in 2014, Shar- jah government opened its realty market for foreign investment by allowing expatriates with a UAE visa to buy property in the emirate. This year, the government has passed a legislation whereby non-Arab nation- als without a UAE residency visa purchase property in the emirate on a 100-year renewable land lease. It is only fair to say that the range of mixed-use real estate projects in the pipe- line for the next few years, and favour- able legislations are bound to transform Sharjah’s built landscape and global appeal for investors as well as visitors. Tourism Tourism is another key area for the emirate in its diversification program. In line with this, the Sharjah Com- merce and Tourism Development Authority’s Vision 2021 initiative aims to attract 10mn visitors by 2021. According to the insights shared by OBG, ‘the strategy, launched in 2015, seeks to build the emirate into a top regional destination for family tourism by investing in a range of ecotourism and cultural attractions. The initiative has contributed to a rise in both public and private investment in the sector, with more than $400mn in new hotel investments announced in 2017 and a $408mn expansion to Sharjah Interna- tional Airport expected to bring annual capacity from eight million to over 20mn passengers’. Cultural, educational, and eco- tourism also rank high on the tour- ism sector’s agenda offering various investment avenues further backed by supportive government legislations. Human Capital The 2018 Deloitte Global Human Capital Trends report indicates that ‘organisations are no longer assessed based only on traditional metrics such as financial performance, or even the quality of their products or services. Rather, organisations today are increas- ingly judged on the basis of their relationships with their workers, their customers, and their communities, as well as their impact on society at large — transforming them from business enterprises into social enterprises’. Sharjah upholds valuing human potential and appreciates what an individual can bring to society. Ex- perts have developed strategies that combine global trends with cultural sensibility to build on human capi- tal that will positively contribute to maintaining the appeal and pulse of the emirate. Sharjah is home to renowned educa- tional institutions such as the American University of Sharjah and the Univer- sity of Sharjah. Given the numerous developments that are underway, there is room for more international institu- tions that the government will gladly support and encourage since quality education is given prime important for the emirate’s growth agenda. To conclude, whether it’s affordabil- ity, return on investment or long-term growth that you are looking for, Sharjah is a sound option and without a doubt a rising investment hotspot on the re- gional as well as the global map.
// construction business news me // August 2018 28 A s the role of Quantity Sur- veyors (QS’s) develops in the construction market, rec- ognition of the benefits they bring to the built environment grows accordingly. Not just number crunch- ers, professional quantity surveyors help shape the world we live in, offer- ing contractual and commercial advice to clients in the construction industry. Qualified Chartered QS have the ability to save clients and businesses millions each year through effective procurement and financial control planning. With nearly 22,000 active projects across the region, practical and skilled application of key tech- niques is essential to ensure that proj- ects run smoothly and provide value for money. This has led to surveyors in the region facing a competitive and challenging market, with the demand for experienced talent being greater than ever before. As the UAE gears up for Expo 2020 and Saudi Arabia works towards its development goals for Vision 2030, there is an increased regional focus on effective cost management and sustainability in construction projects, thus creating a level of expectancy on quantity surveyors in providing expert cost management services to the con- struction industry. Significance of effective cost management As the region’s construction activity develops, ensuring a robust, reli- able, and effective cost management procedure is essential throughout the lifecycle of a project. Keith N Bennett FRICS, RICS Chair of Regional QS and Construction Board, believes that an effective cost consultancy is particu- larly crucial for a contractor who, in the case of an additional request for payment or dispute, has a contractual As the region’s construction activity develops, ensuring a robust, reliable, and effective cost management procedure is essential throughout the lifecycle of a project.” Rob Jackson, RICS’ regional director, highlights the importance of adding value and enabling best practices in the construction industry Value Addition // Op-Ed
construction business news me // August 2018 // www.cbnme.com 29 obligation to prove his entitlement. “Without cost management, both within the contractor and client’s proj- ect monitoring team, disappointment, delays, and losses are inevitable which will involve all concerned parties in- cluding suppliers and sub-contractors. This can be avoided by adopting clear and concise cost management proce- dure at the outset.” With the construction sector poised for accelerated growth and many complex ambitious projects on defined and fixed completion dates, the attention to cost management is becoming crucial to all those involved in the process. However, as Bennett expressed, “some clients who have short-term goals prefer using competitive tenders, particularly in a fierce competitive market where margins are slim. This can lead to delays, prolongation, infla- tionary costs, mistrust, and adversarial situations. It has been clearly demon- strated and proved that early recogni- tion of issues, with cost consultants involved from the very beginning con- fronting potential disputes at the root and dissipating the situation before it manifests into a stand-off, is crucial and benefits all parties immensely.” Standardisation According to a recent report by JLL, Dubai government passed their largest- ever budget for 2018 (AED57bn), where 20% will be spent on infrastruc- ture, which is an increase of more than 40% since 2017. Large-scale infrastruc- ture projects are usually quite complex in nature, whereby precise require- ments of being on-time and on-budget need to be implemented to prevent major disputes between parties. Inconsistency and lack of clarity in comparing and benchmarking project costs is also a huge global problem that surveyors face. For effective cost management throughout a project’s lifecycle, utilising standards such as the International Construction Mea- surement Standards (ICMS) is critical. ICMS not only provides transparency, accurate cost prediction, and manage- ment, but also supports surveyors in making more informed decisions and reducing disputes. Attaining the technical skills Cost consultancy needs to be utilised from the design stage through to the construction, and operational phase of a built asset lifecycle. Therefore, the role of the cost consultant needs to encom- pass all aspects from the ground up. In order to assist professionals in the construction industry and provide them with knowledge on the funda- mentals of cost management, procure- ment, technology, partnerships and collaboration, lifecycle costing and planning, cash flows and evaluate contract forms, RICS has launched two essential training programs namely the Quantity Surveying: Foundation and Quantity Surveying in Practice. These courses provide all the necessary basic competencies and tools required and expected of the profession. Whether construction profession- als are keen to understand and gain the key underpinning principles of quantity surveying, or looking to move into the profession, or simply quantity surveying BSc/MSc gradu- ates, they can all benefit from these training programmes. As the market grows, quantity sur- veyors need to ensure they have the skills that allows them to address the key challenges presented by assessing and communicating risks at all levels in the world of construction. Rob Jackson
// construction business news me // August 2018 30 // Report A decrease in average sales and rental prices was recorded across key areas in Sharjah and Ajman, reveals dubizzle Property’s new report Affordability On the rise U AE-based property platform, dubizzle Property, revealed its Northern Emirates report, comparing rentals and sale prices trends from the first six months of 2017 to H1 2018. With the increasing popularity of rental and sale properties in the Northern Emirates, dubizzle reveals key changes in the property land- scape in order to empower consum- ers to make more well-informed deci- sions. The report findings indicate an overall prominent decline in rentals and sale prices in both Sharjah and Ajman across apartments and villas. Rents decline in Sharjah in H1 When analysing the rental prices of apartments, a decrease in average prices was recorded across key areas. Al Nahda and Al Khan experienced the biggest drops, with a decrease of 16% from H1 2017, followed by Al Taawun, which saw a 14% drop, and Muwailih Commercial where rents are down by 2%. Two-bedroom rental apartments in Al Nahda saw the largest decline, dropping 20%, putting the average cost for a two-bed at AED36,000. However, apartment sale prices in Shar- jah showcased slightly different patterns. The most popular Al Khan area saw a slight increase in average sale prices by 4% while other key areas experienced a drop in the prices. Sale prices in Al Majaz fell by 19% while Al Nahda decreased 9% and Al Taawun saw a fall of 4%. Al Nahda, Muwailih Commercial,
construction business news me // August 2018 // www.cbnme.com 31 and Al Taawun were the most popu- lar areas amongst dubizzle property seekers for both sale and rent. Ajman experiences drop in prices Ajman witnessed a similar decline in both rentals and sales prices, with properties dropping even further than Sharjah. Apartment rentals across the entire emir- ate decreased. Al Jurf and Ajman industrial area saw the largest drop in rental prices in 2018 with a decline of 18% from 2017. This is followed by Al Sawan with a 14% decrease and Emirates City, where prices have dropped by 10%. Samer Abdin, general manager at dubizzle Property, says: "Across the UAE, properties are becoming more affordable resulting in a decline in cost of living. We are seeing an oversupply of property units in the market right now which has created a more competitive and affordable market. Our data highlights that apartment sale prices in Ajman, in particular, have fallen at a more pronounced rate than rental prices, giving property seekers an excel- lent opportunity to invest in their own property.” The greatest decline in average sale prices of apartments was in Al Nuaimiya, which fell 23%, closely followed by emirates city with an average decrease of 21%, and Al Mushairef coming in last with a 19% decrease compared to 2017. While these areas experience heavy declines, Al Sawan experienced the lowest decline in average sale price, dropping by only 10%. Overall, villa prices for both sale and rent have also significantly declined. When looking at the most searched areas amongst dubizzle us- ers, Emirates City, Al Nuaimiya, and Al Sawan were amongst the top areas for both sale and rent. With over 130k listings at any given time and over 100k daily visits, dubi- zzle Property regularly shares insights and trends into the property market in Sharjah and Ajman.
// construction business news me // August 2018 32 // Face to face We’ve always decided to keep few projects in the market every year for end-users to keep our name and stay ahead of the game.”
construction business news me // August 2018 // www.cbnme.com 33 Rising above The rest Muhammad Binghatti, CEO and head of architecture at Binghatti Developers, talks about how he spearheaded the developer’s successful journey within a short span of time The Dubai real estate market is today less speculative and more fundamentally-driven,” believes the young and dynamic chief executive officer (CEO) and head of architecture, Muhammad Binghatti, of Binghatti Developers. The real estate development branch of Dubai-based Binghatti Holding, Binghatti Developers, was established three years ago and the portfolio grew to more than 30 projects in excess of AED3.5bn year-to-date. A third-generation entrepreneur, Binghatti, opines that the mantra of the company is to transform the ‘Art of Property’ into reality. An architect with interest in art and poetry, Binghatti always has his focus fixed on how the design of the building could be iconic, environmentally friendly, cost effec- tive, and very functional to provide attractive products to both end-users and investors. “We’ve grown the company by earning repeat business from custom- ers and institutions such as national bonds, large hotel groups, and private investors. Essentially, once they get a taste of the investment potential and the strong returns that we offer in our properties, they come back for more. This has given us a strong name in the market, especially for these institutional investors, and we are proud to say that they keep coming back to us out of all the other developers in Dubai. “We’ve always decided to keep few projects in the market every year for end-users to keep our name and stay ahead of the game in terms of end- user trends, offering something unique and innovative while at the same time, ensuring good value for money, high- quality materials and finishing, great locations, and delivery on time.” Projects portfolio The developer is currently working on more than 30 projects in Dubai includ- ing Millennium Binghatti Residences, Binghatti Stars, Binghatti Crystals, Binghatti Sapphires, Binghatti Vista, Binghatti East, Binghatti West, and Binghatti Platinum to name a few. Binghatti mentions: “The latest and most prominent development we are working on is Millennium Binghatti Residences, a luxurious waterfront tower, located in Business Bay and inspired from the Millennium Hotels and Resorts. The project consists of 230 units including studio, one- and two-bedroom apartments, and offers a number of hotel-inspired lifestyle amenities. The building also features direct views of the Dubai Water Canal and Dubai skyline.” The tower features several hotel- inspired lifestyle amenities such as a health club, swimming pool, jacuzzi, panoramic lifts, covered parking, land- scaped garden, in addition to various services which include grocery, house- keeping, concierge, day-care, catering, laundry services, 24/7 grocery services,
// construction business news me // August 2018 34 // Face to face 24/7 maintenance hotline, as well as many other premium facilities. Officially launched at Cityscape Glob- al 2017, one of the company’s other projects, Binghatti Stars, is a building that features 362 residential apartments and is located in Dubai Silicon Oasis. The tower showcases a mixture of unit types, including studio, one-and two-bedroom apartments, along with a plethora of lifestyle amenities including a health club by Technogym, a heat monitored swimming pool and jacuzzi, a children’s play area, and a public ter- race for residents to enjoy. Binghatti says: “The project was launched with the powerful idea that a building with iconic design, high quality materials, and an uncompro- mised finishing could be built and sold for a reasonable price in Dubai. As a developer, we realised that the market was saturated with luxurious, high-end real estate projects that were out of reach for the average Dubai resident. We capitalised on this phenomenon by specialising on the mid-segment niche of the market and were able to sell out the majority of the building to end users earning between AED15,000 and AED30,000 per month. “In line with HH Sheikh Moham- med’s initiative for affordable housing, we focused our efforts on reducing costs for the typical end user looking for a home in Dubai. This includes keeping ongoing maintenance and ser- vice fees as low as possible at AED10 per sqft, something developers in this segment often overlook when deliver- ing projects in the mid-segment of the property market.” The developer, with a constant growth in its portfolio, is planning to launch four projects in Dubai Land Residence Complex, 10 projects in Jumeirah Village Circle (JVC), three in Business Bay, and two in Al-Jaddaf, along with different projects in Liwan as well as numerous other projects in Dubai Silicon Oasis soon. Binghatti mentions that the com- pany will announce the special projects at Cityscape Global 2018 and “intend on getting a lot of attention at the event”. Market trends According to the JLL Global Real Estate Transparency Index (GRETI), Dubai has retained its position as the Middle East and North Africa (MENA) region’s most transparent real estate market with a range of new government initiatives and an increasingly dynamic proptech industry pushing the emirate up in the global rankings. Binghatti says: “The UAE is the most stable of all the real estate markets in the region and Dubai is our area of exper- tise. We’ve noticed a lot of institutional investors involved in the market, particu- larly in Dubai. RERA’s regulations and easing of business has allowed these banks to start operating more aggres- sively. There is more transparency and a lot more on what’s happening in the market and this gives the insight neces- sary for these funds to take actions and make decisions on investments.” Affordability has become a trend in the current real estate market and more investment has been going towards it. He says: “We’ve witnessed a shift into affordable housing over the past few years. Moreover, buyers are eyeing real estate investments as alternative homes, further increasing end-user demand. At the same time, the decline in the number of irrational investors, who make purely specula- tive investment decisions, has meant that the market is now more stable, sustainable, and attractive due to its decreased uncertainty.” Also, according to Binghatti, another important achievement is the evolution of RERA’s regulations. “In fact, RERA has done a tremendous job of enacting regu- lations that stabilise the market. For some Binghatti Stars features 362 residential apartments Millennium Binghatti Residences is a luxurious waterfront tower in Business Bay
construction business news me // August 2018 // www.cbnme.com 35 time now, these regulations have been acting as a balancing force between the interests of both investors and develop- ers. This has contributed to a more equi- table investment ecosystem. Ultimately, the development and advancement of the real estate regulatory framework in Dubai promotes further trust and certainty, therefore stimulating further demand for real estate developments.” Finally, being a young entrepreneur himself, Binghatti believes that Dubai’s younger inhabitants now perceive the emirate as a long-term home. “This was not always the case previously when young adults used to consider Dubai as a transitionary place where they work for a few years and leave thereafter. Consequently, more young adults are prepared to invest in and own property today than ever before. This certainly has a positive impact on the market as it avails more liquidity. As people settle down for longer terms and own more property, their sense of stability increases which boosts their confidence as consumers. This translates into a higher propensity to consume which has positive spillover effects on the whole economy.” Future outlook Being a highly ambitious company, Binghatti hopes to reach a portfolio worth AED7bn by 2022, and “we will achieve this goal if we keep growing with the same pace”. He opines: “We are currently operating in several areas of Dubai through a portfolio of more than 39 projects worth AED3.5bn. We have already acquired a land bank of approximately 37ha across Dubai, and we are also looking forward to expand- ing in different areas of the emirate.” The developer will continue its expansion during the coming two to three years and have always planned a minimum of exponential growth every year. The chief mentions: “For example, if we build two buildings in a year, we make sure to develop four buildings in the following year, and another four in the subsequent one. I believe that our strategy has been the same for the past three years in terms of growth. When it comes to design, we are willing to continue our branding through our architecture, except that we will raise the bar higher in terms of the types of design and style that we develop.” The company will also continue to focus on providing solutions for both institutional investors as well as end-users. Binghatti continues: “We continue to see Dubai as a very high potential market and feel that there is still a lot of growth available in the market especially leading up to the Expo 2020. In addition to this, we are seeing more institutional investors and real estate funds and investment banks getting involved in the property mar- ket, which is always a good sign. “It shows that there is a lot of matu- rity taking place and that there are a lot of enhancements in terms of regu- lation. The market is becoming more transparent which gives more comfort to these investment banks and funds to invest more money in Dubai. Con- cerning the end-user market, we will have projects in some of the upcom- ing areas in Dubai such as Millennium Binghatti Residences in Business Bay, Al Jaddaf, JVC, and of course our hub - Dubai Silicon Oasis.” According to Binghatti, the firm is mostly focusing on residential devel- opment, and more specifically, the mid-segment market. He concludes: “It’s no secret today that Binghatti Developers’ strength is in the mid- segment property market and that it is leading this segment as it has been synonymous with a meticulous bal- ance of quality and affordability. The company has successfully delivered numerous projects offering holistic solutions for end users. Moreover, the company has proven itself as a viable alternative to some of the largest mar- ket players in Dubai, strengthening its reputation with an extensive portfolio of completed projects.” Muhammad Binghatti, CEO and head of architecture at Binghatti Developers
// construction business news me // August 2018 36 Dubai Holding and Emaar champion new era in retail with Dubai Square, a tech-driven retail destination in Dubai Creek Harbour Usher in a new era // Cover story B usiness conglomerate Dubai Holding and Emaar Properties have announced the launch of Dubai Square, a new retail metropolis that pushes the boundaries of modern retail and leisure in Dubai Creek Harbour by drawing on next-generation technology. Blurring the boundaries of online and in-mall shopping, integrating indoor and outdoor, and delivering a social experi- ence like none other, the all-new Dubai Square is designed for the new era of customers - digital, connected, and tech-savvy - and setting a benchmark for retail experiences. Mohamed Alabbar, chairman, Emaar Properties, said: “Dubai Square disrupts the traditional mall and retail experience. Focused on the aspirations of the new generation of customers, it reflects the vi- sion of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, to posi- tion Dubai as a global hub and a smart city. Dubai Square will play a pivotal role in further establishing Dubai as the next champion of global retail. “With Dubai Square, we are delivering a new destination experience that will bring incredible value to our retail part- ners. Dubai Square is where technology meets the human touch, and retail meets next-generation entertainment. With its omnichannel offering, it not only drives in- store retail but also the online engagement of brands with customers. With its location in Dubai Creek Harbour, and by serving as the closest mega-retail district to millions of passengers passing through the Dubai International Airport, it meets the real need for a new generation lifestyle destination, especially given Dubai’s growth in popula- tion and tourist arrivals.” HE Abdulla Al Habbai, chairman of Dubai Holding, said in a statement: “Dubai is experiencing tremendous tourist inflow and continues to rank highly as a holiday destination for people from many different parts of the world. The city’s appeal is anchored in its strong leisure and enter- tainment, retail and hospitality industry, the foundations of which Dubai Holding helped build and strengthen over time. Dubai Square is our new retail and leisure destination, and with this, we aim to actu- ally redefine the shopping experience by introducing a variety of innovative con- cepts. This is our latest endeavour to bring the best to Dubai, as part of Dubai Hold- ing’s promise, ‘for the good of tomorrow’.
construction business news me // August 2018 // www.cbnme.com 37 “Dubai Holding has always been at the forefront of Dubai’s socio-economic growth through our contributions in building a range of strategic sectors. The retail sector is one of the pillars driving happiness amongst tourists, locals, and residents alike, and as such remains a key focus for us. We continue to play an important role in its development for the benefit of Dubai’s future, in line with our leadership’s vision of a happy and prosperous nation.” Dubai Square is set in the heart of Dubai Creek Harbour, the six sqkm mega-development only 10 minutes from the Dubai International Airport and Burj Khalifa by Emaar, as well as set by the historic Dubai Creek. Dubai Square will also be the closest mega-retail district to millions of visitors passing through Dubai International Airport. It will play a central role in driving retail sales in Dubai, ex- pected to be over AED160bn by 2021, and serving the estimated 20 million tourists to the city by 2020. Dubai Square will also feature an eclectic mixture of styles and references. The inspiration comes from leading cit- ies across the world, with the fashion selection at the retail outlets drawn from London’s Oxford Street, Los Angeles’s Bev- erly Hills, Paris’s Champs-Élysées, Tokyo’s Ginza, Piazza della Republica in Florence, and Madrid’s Plaza Mayor, to name a few. Dubai Square will be linked directly to the Dubai Creek Tower through a cutting- edge underground extension. Here, the visitors can revel at a plaza at the base of the Tower. The Plaza is a clock-shaped ha- ven of landscaping, palm trees and water features sprawling across half a kilometre of land – the length of 10 Olympic sized swimming pools. Designed for the modern consumer Dubai Square is designed with the modern consumer in mind. Offering experiences that go well beyond traditional shop- ping, it offers an assortment of spaces to socialise in an authentic city atmosphere and raise the bar. Equivalent to the size of more than 100 football pitches - with over 750,000sqm of gross floor retail space – Dubai Square pushes the boundaries of design and mall layout. It is spread across three levels, each presenting a unique set of experiences to the customer. Skylights, glazed roofs, and shopfront windows will be part of the sensory visitor experience. Parks, patches Dubai Square • Gross floor retail space of 750,000sqm • 260ha of retail, hospitality and residential gross floor area • 570ha total built up area • 9,262 residential units in Dubai Square District • 1,563 hotel keys in Dubai Square District • Spread over three levels • Several lifestyle districts including the region’s largest and first Chinatown spread over three floors • Leisure attractions include an ice park, water park, and entertainment arena
// construction business news me // August 2018 38 of green and lush landscaping will provide a natural balance to state-of-the-art facili- ties. Special LED technology is set to drive impactful and interactive backdrops and delight customers throughout their journey. Driven by tech Technological innovation permeates every aspect of Dubai Square’s function. Championing ‘omnichannel retailing’, it will offer customers a seamless blend of shopping via desktop, mobile, or at a retail store. The physical and the digital at Dubai Square co-exist in harmony, with stores acting as showrooms for their online presences. Digital conveniences will include custom-designed mobile apps, quick checkout solutions, search and barcode scanning applications, radio-frequency identification technology, mobile pay- ments, and click-and-collect services. Dubai Square will also be a playground for tech brands around the world. It will be home to innovators in the automotive, computing, sustainable technologies, 3D printing, drones, artificial intelligence, and other emerging industries. Retail and leisure offerings Dubai Square will be home to the Middle East’s largest of its kind China- town, offering a wide range of retail attractions on the league of similar precincts globally. The Chinatown draws on the presence of over 200,000 Chinese nationals living in the UAE and the thousands of tourists arriving annually to the country. It builds on the strong Chinese investments in the UAE and the momentum gained by Chinese tourist arrivals with the introduction of visa on arrival by the country. In addition, Dubai Square’s ground floor features an events arena and a broad spec- trum of event spaces on streets and alleys. The first floor has a magnificent four-lane boulevard lined with luxury retail, dining, and leisure outlets. Unique immersive experiences will elevate the fashion offering at Dubai Square with special VIP dressing rooms, smart fitting rooms with interactive mir- rors, curated private fashion collections, personalised AI recommendations, 3D- printed clothing and accessories, fashion museums, and more. Across the boulevard is a grand luxury avenue, with high-profile brands and a dazzling piazza, and scores of casual dining restaurants. The second floor is a family-friendly haven featuring an impres- sive array of activities at Ice Adventure, as well as a cutting-edge Cineplex, a waterpark, sports arena, supermarket, and a metro link. A futuristic entertainment arena with 3D projection mapping, theatrical sound and lighting, high wire rigging, and other cutting-edge attributes is at the heart of the offering. This entertainment venue will host concerts and theatre shows, celebrity performances, acrobatics shows, museum- quality exhibitions, and more. The culinary experience Whether it's nouvelle cuisine the visitors crave, fusion, vegan, Peruvian, French- Vietnamese, or a new dining concept, they will be impressed by the high-quality of service in the facilities. Specially designed apps for ordering food and beverage on the premises will minimise queuing and long wait-times, while others are set to provide personalised dining recommen- dations and 3D-printed food delicacies. Dubai Square will also have live cooking stations, street vendors, festive pop-up markets, grab-and-go F&B offerings, and an organic market. // Cover Story Mohamed Alabbar, chairman, Emaar Properties
Jebel Jais is part of the Hajar Mountain Range in Ras Al Khaimah. It is the highest peak in the UAE. And for centuries unreachable by most. For 8 years, a fleet of Volvo FMX Trucks carried a total of more than 5.5 million cubic meters around the clock building a 36 km road that goes up more than 1910 meters. The rugged terrain, steep slopes and loose rock were not a challenge for Volvo FMX, which is built tough for such conditions. That is why more than 30 of our Volvo FMX trucks completed this ambitious road project without any major breakdown. To watch the full video please visit www.volvotrucks.ae/jebeljais Building the UAE ’s highest road www.volvotrucks.ae/jebeljais
// construction business news me // August 2018 40 Art offerings Dubai Square also features an Art Dis- trict, serving as a crossroads for artists and art lovers from around the world. From tall Giacometti-style sculp- tures to small terracotta statues, from permanent exhibitions to ephemeral performance art, from large-scale con- certs to one-man shows, the universal language of art will come to life here. In addition to serving as a creative hub for young designers, perform- ers, and other creatives, year-round immersive events will integrate retail with dance, drama, literature, paint- ing, music, photography, cinema, and other art forms. The Art District will be driven by Art Emaar, an initiative launched recently to bring new aesthetic experiences to Emaar’s master-planned developments and to engage people through various arts and culture initiatives, under- pinned by the showcases of works by eminent artists. A thriving lifestyle destination A one-of-its-kind modern master- planned destination, Dubai Creek Har- bour, is located along the Dubai Creek in the heart of the city. It is only 10 min- utes from the Dubai International Airport and Burj Khalifa by Emaar in Downtown Dubai, and next to the Ras Al Khor Wildlife Sanctuary, which is protected under the UNESCO Ramsar Convention, and is a biologically diverse wetland reserve home to migratory birds includ- ing pink flamingos and over 450 animal species as well as rich mangroves. Dubai Creek Harbour will be populated with residential towers; a vibrant new precinct that ushers in the future of retail – Dubai Square; the Creek Marina with a modern yacht club; parks, green spaces, and promenades; and world-class hotels. Schools, hospitals, and recreational facilities in the vicinity, as well as Dubai’s upcoming iconic mosque, will round off the ideal family and tourist destination. It will feature four Dubai Metro links adding to the connectivity to the Dubai Creek District. With over 750ha of residential space, nearly 940,000sqm of retail precincts, 300,000sqm of commercial space, over 66,000sqm of cultural space, 700,000sqm of parks and open spaces, and 24 hotels with 5,800 rooms, Dubai Creek Har- bour will serve as a strong economic catalyst for Dubai. When completed, Dubai Creek Harbour will be home to over 200,000 people, and be a thriving economy that drives the tourism, retail and hospitality sectors of the city. Dubai Creek Harbour • Located by the Dubai Creek • 10 minutes away from the Dubai International Airport • Adjacent to the Ras Al Khor Natural Wildlife Sanctuary with over 450 animal species • Views of Downtown Dubai skyline and Burj Khalifa • Dubai Creek Tower at its core • Dubai Creek Plaza, 1.5km-long • Creek Island Dubai with 4.5km Creek Boardwalk • A new age of retail with Dubai Square • 750ha of residential space • 940,000sqm of retail precincts • 300,000sqm of commercial space • 66,000sqm of cultural space • 700,000sqm of parks and open spaces • 24 hotels with 5,800 rooms • To be home to over 200,000 people // Cover Story
Safdar Badami, managing director, Al Muqarram Industry (AMI), talks about sustainable prod- ucts and future plans for the company Seal the deal // Interview // construction business news me // August 2018 42
A l Muqarram Industry (AMI), one of the UAE’s leading manufacturer of silicone seal- ants, adhesives, adhesive tapes, coat- ings, aerosol products as spray paints, rust remover, and car care products, introduced Dolphin fire stop silicon sealant early this year. The ultimate line of defense against fire and smoke, the silicone sealant was certified by the UAE government, making AMI the first certified silicone sealant manufac- turer in the UAE. In an interview with CBNME, AMI MD, Safdar Badami, throws light about the company’s success and its array of innovative products. Give us a brief overview of the company. With business experience of two gen- erations, Al Muqarram Industry (AMI) has developed a strong research and development (R&D) department who creates a specialised formula for each product. Under our brand, Dolphin, we sell a wide range of silicone seal- ants, adhesives, coatings, tapes, and aerosol products. We are known for selling products of high quality at prices that suit our customers. After analysing the market in 2012, AMI expanded its trading business through a new division called the Al Muqarram Trading Company in Dubai. In 2014, the Al Muqarram Group established a new factory- Al Muqarram Air Freshen- ers and Paint Industry. A team of experienced, highly quali- fied, and trained professionals in sales, distribution, logistics, and customer ser- vice have brought together the group’s arms. Today, Al Muqarram represents a group of companies providing industrial and commercial solutions in the UAE market, and business network on global level. We connect the quality and cus- tomers in each corner of the world. What are the construction products that you have for the GCC market currently? AMI, under its brand, Dolphin, creates high quality products for the construc- tion and automobile sectors. Sealants, adhesives, coatings, aerosol, and car care petitive manufacturers in the UAE. This has all been due to our commitment to quality resulting in a steady growth, success, and achievements. Our compe- tent team of professionals has innovat- ed quality products while keeping them affordable. In a short span of time, AMI has evolved greatly, earning a reli- able brand name and trusted business partners. Dynamic and progressive, we believe in having the right attitude. AMI follows cutting-edge technology, strong convictions, and fair business principles to position itself to become one of the largest brands in the region. What are the criteria that you follow to maintain the standards of sustainability? Our products are green certified and fall under the architectural standards to be used in the construction with its low VOC content. With the constant evolu- tion in various industries, AMI’s research and development team is in constant progress, developing new products and improving existing products that make it sustainable in the market. Being an ISO 9001 certified company enables us to sustain different market trends and work towards customer satisfaction. What are the construction projects that you have supplied your products to? AMI’S strongest brand, Dolphin, has been used in numerous projects in the UAE. For example, AMI’s Dolphin Weather Sealant is already used in projects, includ- ing The Hills project by Emaar, JAFZA Convention Center, Hidd Al Saadiyat villas in Abu Dhabi, ADNOC residential building expansion, and many more. Any expansion plans that you have for the company? Over the years, AMI has expanded both in the UAE and in the global market. It has diversified into GCC, Asia, and Africa. This implies meeting the needs and requirements of building materials and the automotive industry. We hope to add more products to the length and breadth of the company. We will con- tinue to better our products and stay ahead of the market curve. are among high demand on building ma- terials and automotive sector in the Gulf and, with a diligent research department, AMI has been a prominent manufacturer for these products since the year 2000. Alkoxy and neutral cure sealants are one of our top products within the Dolphin Weather Sealant. With extreme climate changes, Aquafix and Bitumenous Water- proofing will play a big role in the years to come due to the climate changes. Con- tact and floor adhesives are also products to watch out for. Any plans for new products for the construction sector this year? Dolphin aims at developing an entire range of fire rated products, especially keeping in mind the strict fire preven- tion guidelines given by the UAE Min- istry of Interior Civil Defense. Lastly, in connection with our Dolphin Fire Stop Fire Rated Sealant, we need to have it approved by either Dubai and Abu Dhabi Civil Defense. Give us an overview about your market presence in the region. How do you differentiate from your competitors? AMI wants to elevate the lifestyle of its customers by giving them products that are high on utility. Everything we do is underpinned by our corporate values and our day-to-day actions are guided by our business conduct poli- cies. In fact, our Dolphin Weather Seal- ant is now making names against Dow Corning and Sika products. Hence, we know that we are in the right direction and should continue on this path. Almost 46 building materials and 23 car care products are being sold which reiterates that we are among the com- AMI wants to elevate the lifestyle of its customers by giving them products that are high on utility.” construction business news me // August 2018 // www.cbnme.com 43
Gates Open For the third year running, the Construction Innovation Awards 2018 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 17 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 2018. Date: Wednesday, October 17, 2018 Venue: The St Regis, Dubai Nomination deadline: August 31, 2018 // Awards preview 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 2018. 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 2018. 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 2018. 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 2018. 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 2018. 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 2018. 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. // construction business news me // August 2018 44
Sustainability Initiative of the year Contenders for the Sustainability Initiative of the Year award will need to provide details of an initiative successfully execut- ed in the region in the 12 months to the end of August 2018. 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 on the industry. CSR Initiative of the year Contenders for the Corporate Social Responsibility (CSR) Initiative of the Year award will need to provide details of an initiative successfully executed in the 12 months to the end of August 2018. The category is open to all com- panies 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 on the industry. Project Awards 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 2018. Retail project of the year The Retail Project of the Year Award will be awarded to the malls and shopping complexes that demonstrate construction best practice, and can show how construction techniques and technology have contributed to its success within 12 months till August 2018. Hospitality project of the year The Hospitality Project of the Year Award will be awarded to any hospitality/tourism-related project that makes an impor- tant contribution to its surroundings, demonstrates construc- tion best practice, and can show how construction techniques and technology have contributed to its success within 12 months till August 2018. 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 2018. 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 2018. 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 2018. 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 outstanding 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 out- standing 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. construction business news me // August 2018 // www.cbnme.com 45 #CBNMEAWARDS18
// Awards preview • Young Entrepreneur of the Year – Kareem Farah, Engineering Contracting Company (ECC) • Young Ideator of the Year – Mahmood Shaikhani, Shaikhani Group • Project Management Firm of the Year – Hill International • Commercial Project of the Year – Etihad Museum by ASGC • Hospitality Project of the Year – Damac Towers by Paramount Hotels and Resorts • Infrastructure Project of the Year – Burullus Power Plant in Egypt by Orascom Construction • Sustainable Project of the Year – The Sustainable City by Diamond Developers • Residential Project of the Year – Jumeirah Living Marina Gate by Select Group • Sustainability Initiative of the Year – Dow Cool Reflective Roof Coatings by Dow IMEA • HSE Initiative of the Year – Life Preserving Principles by Aecom • CSR Initiative of the Year – Because We Care campaign by Drake & Scull International • Construction Executive of the Year – Mohamed Jafer Musthafa from Daemaar Group • Engineer of the Year – Clement Gunasekar from Al Faraa General Contracting • Project Manager of the Year – John Rinard from Parsons • Supplier of the Year – Kirby Building Systems • FM Company of the Year – Deyaar FM • MEP Contractor of the Year – ASU • Real estate developer of the Year – Azizi Developments • Consultant of the Year – Aecom • Contractor of the Year – Orascom Construction • Lifetime Achievement Award – PNC Menon, founder and chairman, Sobha Group Wall of fame // construction business news me // August 2018 46 @ c b n m e f a c e b o o k . c o m / c b n m e C o n s t r u c t i o n B u s i n e s s N e w s M E #CBNMEAWARDS18
// construction business news me // August 2018 48 // Case Study
construction business news me // August 2018 // www.cbnme.com 49 Roma Arora visits Address Downtown, which opened recently after the 2015 fire that set the hotel ablaze on New Year’s Eve O ne of the most iconic prop- erties in Dubai, Address Downtown, has reopened after nearly three years of exhaustive renovation works caused by a fire on New Year's Eve in 2015. An electri- cal short circuit on a spotlight was the cause of a fire that engulfed The Address Downtown Dubai hotel just before the midnight. A spark from cables connected to the light, which sat on a ledge between the 14th and 15th floors of the 63-storey tower, trig- gered the blaze. Towering high at 302m across 63 levels, the hotel, which is a part of the Emaar Hospitality Group’s Address Hotels & Resorts brand, looks stunning from all the quarters after it opened doors to the public once again. The in- teriors strike a right chord between the old and the new, with modern marble interiors, without losing the Arabesque touches and the key USPs that Address Downtown was known for. Caroline-Jane Houston, general manager, Address Downtown, shares with Design Middle East: “We worked with world-leading designers and consultants to ensure that the re- stored version of Address Downtown has a timeless appeal that upholds the brand’s distinctive positioning of ‘where life happens’.” The hotel lobby is full of fine ar- chitectural details, brilliant artworks, butterfly installations, and hand- crafted décor accessories. The lobby evokes a real mix between stunning white pillars, floor-to-ceiling glass windows, and comfortable furnish- ings. “We decided to partner with exceptional artists from around the world to add elegant and inspira- tional elements to the hotel’s design. The ethos of the hotel’s interiors is lifestyle luxury, blending opulent ma- terials like patterned Italian marble fixtures with lifestyle installations such as the three synthetic-glass butterflies by Stephen Stefanou that hang above the stairway leading to The Restaurant,” explains Houston. The subtle and muted tones can be seen across the property in various humble shades. Rooms are spacious Rise once again
// construction business news me // August 2018 50 and connect with the overall theme of the property; one of the stunning rooms available is the Signature Spa Suite Fountain View, all opening to spectacular views of the skyline with a huge balcony. Houston says: “To maintain the popularity of the property, we have taken great consideration in the guest journey, from the mood light- ing in the rooms to the movement of the environments, making the areas more easily accessible and more lifestyle in approach.” The property houses some lead- ing fashion brands throughout the premises in a display cabinet, which is another highlight to check out. The guests can purchase the showcased items while staying at the property. The Restaurant at Address Down- town is designed in the style of an avant-garde French apartment with inspired spaces from the living room to the kitchen concept. Another beau- tifully curated restaurant is the STK, an ingenious interpretation of an Ameri- can steakhouse in the form of a chic, contemporary lounge. There’s an uber cool place called Neos, an ultra-luxury lounge on Level 63, assuring guests a never-before ambience. One cannot keep their eyes off the very-sophisticated looking The Spa as well as keeping popular areas like the Cigar Lounge, Zeta, and Neos. Having been part of the initial opening team in 2009, I have been able to help blend the areas of the property that worked well before, whilst looking at some that required improvement. We have also added some British influ- ences as well, including our beauti- ful bespoke collection of Wedgwood Bone China and the team uniforms, which we call styles, that are based on British icons.” // Case Study with breathtaking views. It has nine treatment rooms, a hammam, steam rooms, and relaxation areas as well. Houston, who has been part of the initial opening team in 2009, exactly knew how to maintain the essence of the property. She shares: “We have modernised whilst maintaining familiarly, and this has been done by pulling in those inimitable initiatives that has made Address Downtown so special. The signature scent is one of the touchpoints that remains as before, The hotel lobby is full of fine architectural details, brilliant artworks, butterfly installations, and hand-crafted décor accessories.
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// construction business news me // August 2018 52 // Machinery One of the leading customers in Dubai praises Bobcat telehandler's reliability and performance O ne of the leading Bobcat tele- handler customer in Dubai has praised the high performance, reliability, and durability of the Bobcat telehandler range. The com- ments come from reputed contractor, Fujairah National Construction Co (FNC), and are supported by their experience with a top-of-the-range Bobcat T40180 18m telehandler. Purchased in December 2015 from Dubai-based Kanoo Machinery, the Bobcat dealer for the UAE, the T40180 has provided trouble-free performance since it arrived, already completing well over 10,000 hours on site. The T40180 has been work- ing two shifts a day throughout this period and has been used on three major contracts including two new 18 storey buildings. According to Kanoo, the record of the T40180 is typical of what can be expected from the Bobcat telehan- dler range in the tough working conditions in the Middle East. Over the last two and half years, the T40180 has required only normal servicing under the preventive main- tenance programme recommended by Bobcat. Its performance is a per- fect illustration of the reliability and durability that customers can expect not only from Bobcat telehandlers, but also Bobcat skid-steer and com- pact loaders, compact excavators, backhoe loaders, and attachments in the exacting conditions found in the Middle East. and warehouses, including many in the Jebel Ali Free Zone (JAFZA), FNC developed to become the first turnkey construction company in the UAE offering combined exper- tise in design, construction, and management for building high-rise towers exceeding 40 floors. Along- side being a turnkey contractor, FNC is also the largest steel framework contractor not only in the UAE but also in the Middle East. Rizvi added: “We have used the Bobcat T40180 telehandler for a wide variety of applications, from lifting rebar from trucks for founda- tion work to moving heavy materials Farhan Mahmood Rizvi, engi- neered equipment and plant man- ager at FNC, said: “We have been delighted with the performance of the Bobcat T40180 telehandler. We make sure we look after all the equipment in our fleet, following or even exceeding manufacturers’ servicing and maintenance guide- lines. We closely monitor all the components and performance of our machinery, ensuring all aspects such as greasing, oils and fluids, and genuine parts are used in full com- pliance with these guidelines.” From its roots in the construction of factories, commercial buildings, Driving Excellence
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// construction business news me // August 2018 54 such as the components for the steel work in buildings. The depend- able safe lifting offered by the T40180 when it is used both with the wheels alone or with its stabilis- ers deployed has been an impor- tant aspect for us. The easy-to-use stabilisers also ensure that the full capabilities of the telehandler can be utilised in the most confined working areas and close to walls.” The T40180 18m telehandler at FNC is the largest model in the Bobcat range of rigid frame telehandlers. The T40180 model delivers market-leading load chart performance in its class, with an unmatched maximum lifting height of 16.2m when operated on tyres alone. The high stability of the tele- handler ensures minimal loss of lift height and capacity, and the T40180 model is based on an easy-to-use design that provides class-leading efficiency and productivity backed by state-of-the-art safety systems. The T40180 telehandler has a maximum lift capacity of four tonnes and a maximum lift height of 17.52m. The lift capacity at maxi- mum lift height is 2.5 tonnes, while at maximum reach (13.7m), the lift capacity is 560kg. Unloaded, the T40180 weighs 10.79 tonnes and provides a crowding force of 12,300 daN. The unique, patented Bobcat side shift system is a standard fea- ture on the T40180 model, ensuring there is no need to reposition the machine if it is not aligned with an opening, providing maximum flex- ibility with a +/- 700mm side shift. High comfort, high visibility cab Featuring optimised ROPS/FOPS protection, the cab on the T40180 telehandler offers increased safety and visibility through a curved front window providing a better view of loads and attachments at height; a larger back window increasing sight to the rear; and a cab door with windows above and below the handlebar for optimum visibility when manoeuvring the machine. From their comfortable seat, the operator is provided with an ergo- nomic array of machine controls all within easy reach and including a forward/reverse (FNR) control but- ton on the joystick; a digital display; an adjustable steering wheel; and an integrated airflow solution. FNC has used the T40180 mainly with pallet fork and bucket attach- ments but the company also equips the telehandler with a man platform for periphery works on buildings. These are part of a wide range of attachments for Bobcat telehandlers, including different types of digging buckets, concrete buckets, jibs, and winches. The T40180 telehandler can also be supplied with a wide se- lection of engine, hydraulic, boom, rear, cab, frame, and tyre options. Kanoo Machinery has grown to become one of the leading materials handling, construction, agriculture, cleaning, and industrial equipment distributors in the Gulf. Products from Bobcat are marketed through dedicated sales and aftermarket product specialists available in all five branches (Dubai, Abu Dhabi, Al Ain, Sharjah, and Ras Al Khaimah) in the UAE. The company supports its customers through its expert team of sales and factory trained service engineers, technicians, and support staff. An extensive inven- tory of fast moving machines and consumables offers a fast response time to customer requests and is maintained in stock at all branch- es of Kanoo Machinery. This is complemented by the large inven- tory held in the Kanoo Distribution Centre in Al Quoz and JAFZA. // Machinery
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// construction business news me // August 2018 56 // Equipment SDLG celebrates 1,000th wheel loader sale in Indonesia S DLG celebrated the delivery of its 1,000th wheel loader in Indonesia at an event in Jakarta on July 18, 2018. The sale of the 1,000th unit — an LG936L — to cus- tomer, PT Bumi Mentari Karya, signals growing customer confidence in SDLG construction equipment. SDLG has seen three consecutive years of growth in wheel loader sales in Indonesia and is expecting another strong year ahead. Between 2014 and 2017, SDLG wheel loader sales rose 40% in Indonesia — the company was also the market leader for wheel loader sales during this period. On the back of this growth, the company recently sold its 1000th wheel loader in the country, an achievement that was celebrated at an event at- tended by the customer PT Bumi Men- tari Karya, local dealers PT Indotruck Mentari Karya’s fleet of 19 SDLG wheel loaders, which includes 13 LG936L units and six LG938L units. As SDLG’s top-selling wheel loader for several years, the 3t-rated LG936L is widely-used on farms, timber plants, town construction, and other small projects. It has a bucket capacity of 1.8cbm, a maximum dumping height of 2,950mm, and a maximum dumping distance of 1,050mm. “SDLG wheel loaders’ success in Indonesia is only possible thanks to customers’ confidence and support of our machines and brand,” said Anthony Neo, SDLG director of sales support. “We really appreciate the opportunity today to thank and celebrate with our customers and local dealers. We will continue to deliver machines that are ever more reliable and productive while maintaining their value proposition.” Utama and PT Intraco Penta Prima Servis, and SDLG senior executives. “We’re happy to be a part of SDLG’s milestone. The company’s wheel loaders are cost-effective yet reliable and have performed well for us, which is why we make return purchases,” said Wiby Swanto, senior manager of PT Bumi Mentari Karya. “For SDLG to sell 1,000 wheel loaders in Indonesia over a short period of time just goes to show the confidence that we and, I’m sure, other customers have in these machines.” At the celebrations, Victor Zhao, vice general manager of SDLG Import and Export, delivered the LG936L to Swanto. PT Bumi Mentari Karya will be using the unit at a palm oil mill in Pekanbaru, Riau. During the celebra- tions, SDLG also launched the RD730 road roller in Indonesia. The new LG936L will join PT Bumi A b r o a d v i s i o n
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// construction business news me // August 2018 58 // Market Watch New AED50bn government package to reduce costs for real estate developers, promote public- private partnerships (PPP), and provide dual licenses for companies located in free zones C a u t i o u s m e a s u r e s A lthough market condi- tions in Abu Dhabi remain relatively unchanged this quarter, Q2 witnessed a major announcement by Sheikh Mo- hammed Bin Zayed introducing an economic stimulus package for Abu Dhabi to drive economic growth, outlines JLL’s latest report. The three- year AED50bn package should boost sentiment among key stakeholders and have a direct impact on the capi- tal’s real estate sector. The stimulus package introduced in early June 2018 will drive initiatives that directly affect the real estate sector by reducing costs for developers, pro- moting partnerships between public and private sectors, and also providing dual licenses for companies located in free zones to bid for, and undertake government tenders outside the free zone. Peter Stebbings, national director and head of Abu Dhabi, JLL, says: “The new government economic stimulus package has positive implications for the Capital with new initiatives directly impacting the real estate market and as with previ- ous government stimuli should lead to an upswing in investment. “There has been an increased focus on promoting and implementing public-private partnerships across the region and within the UAE in particu- lar. With the stimulus package being introduced in Abu Dhabi, real estate developers will be able to reduce costs, paving the way for positive sen- timent across the market.” Residential Residential rents and sales prices continued to decline due to weak demand, cautious investor sentiment, and increased supply. Rents have been negatively impacted by weak demand following job losses and cuts in housing allowances leading to more vacancies. Concerns over the pace of the global economic recovery have also contributed to weaker investor sentiment, placing downward pressure on prices in the secondary market.
construction business news me // August 2018 // www.cbnme.com 59 for Grade A and AED900 per sqm for Grade B. The decline in the rents reflects the extent to which the market has shifted in favour of tenants over the past year. With vacancies on the rise due to consolidation, there is greater competi- tion and more choice of space avail- able to tenants. This has resulted in tenants having the upper hand when it comes to the terms and conditions in- cluding rental rates, rent-free periods, fit-out contributions, particularly within Grade B office buildings. Retail The introduction of VAT earlier this year has prompted retailers across the UAE to shift their focus to ways in which they can provide greater value to shoppers who have become more price conscious. Although VAT has had a short-term negative impact on consumer spending, other factors are likely to have a larger long-term impact on consumer spending. The food and beverage (F&B) sec- tor maintains a strong position in the market with high demand still reported for shisha-licensed areas, for which interested parties are willing to pay substantial premiums. Hospitality The hospitality market registered a 2% increase in occupancy levels and a 7% drop in ADRs compared to the same period last year. Consequently, RevPar declined by 4% in YT May 2018 com- pared to the same period last year. One reason for the decline in perfor- mance over the first half of the year was that the biennial IDEX Defence Exhibition and Conference did not take place this year, which is a huge draw for visitors. The significant level of upcoming supply is expected to add further downward pressure on ADRs and RevPar levels throughout the rest of the year. However, with the UAE’s decision to allow 10-year visas for expats and 100% foreign ownership in companies outside of free zones will boost senti- ment in the residential market, provid- ing expats with more security over their rights to remain in the UAE. Approximately 650 units were deliv- ered in Q2 2018, bringing the total resi- dential stock to around 255,000 units. Deliveries included C87 residential tower in Rawdhat, M Tower on Reem Island, and Marina Sunset Bay Apart- ments in proximity to Marina Mall. A further 7,000 residential units are currently scheduled to enter the market by the end of 2018, mainly within Reem Island, Yas Island, and Saadiyat Island. However, a significant proportion of this supply could get delayed at the final stages of approval and handover. Office Office rents have slightly fallen in Q2 as consolidations continue to take place and other companies choose to downsize. Employment levels in Abu Dhabi continue to be affected, specifically in government agencies and financial service entities, placing downward pressure on rental rates. Headline rentals for both Grade A and Grade B office spaces continue to face pressure. Rates for shell & core offices exclusive of service charges are averaging at AED1,700 per sqm Peter Stebbings, national director and head of Abu Dhabi, JLL The three-year AED50bn package should boost sentiment among key stakeholders and have a direct impact on the Capital’s real estate sector
// construction business news me // August 2018 60 // Editor's pick Makkah poised to welcome investment opportunities to boost economic growth as PIF announces latest mega project in Makkah, according to a JLL report Setting standards T he latest mega project in Makkah ‘Rou’a Al Haram Al Makki', announced late last year by the Public Investment Fund (PIF), will play a significant role in boost- ing Makkah’s economic growth and, in turn, enhancing the overall senti- ment in the Makkah real estate market, according to JLL’s H1 2018 Makkah Marketplace report. The government is now implement- ing different projects within the Saudi Vision 2030. The new project in Makkah is expected to contribute SAR8bn to the national economy. Construction is expected to commence later this year, paving the way to increase the city’s ability to host 30mn pilgrims annually in line with the government policy of lifting the quota on Hajj pilgrims, introduced in H1 2017. With the influx of pilgrims, there will be an expected increase in in- vestment opportunities across all sectors of the real estate market. “With the latest megaproject being announced late last year, the Makkah market is likely to witness increased investment across all real estate sectors over the rest of 2018 and beyond,” said Craig Plumb, head of research, MENA at JLL. “The government is rap- idly introducing policies and promot- ing additional investment across the entire Kingdom, to diversify the econo- my, and increase the rate of economic growth. Makkah remains central to attracting Hajj and Umrah visitors and will benefit from the megaproject that will also encourage other key stake- holders to invest across all real estate sectors. This new investment will be a particular boost in sentiment towards the hospitality and retail sectors.” The first Makkah Economic Forum, held in May, unveiled eight investment opportunities in the Hajj and Umrah sector in the office market, with a value of approximately SAR600mn across the two holy cities of Madinah and Makkah. The Ministry of Hajj and Umrah is also encouraging SMEs to invest in companies offering Umrah services to further im- prove the corporate sector’s performance. Whilst residential rents and sales prices softened further in H1 2018, fur- ther down the line, Makkah should ex- perience a continued increase in prices as new projects enter the market. The new megaproject could potentially add a further 9,000 residential units to Makkah’s supply pipeline and this is just one example which is currently in the early phases of development. The food and beverage (F&B) sector is becoming an increasingly important in the retail market in Makkah, as a number of recently completed plazas offering quality international restaurants and food outlets have been opened across the city. Citywide vacancies declined marginally by around 2% over the past 12 months to reach 4%. The ‘Rou’a Al Haram Al Makki’ project will further enhance the sector to support the project’s 310,000 visitor capacity. The hotel sector is due to witness a surge in supply as 70,000 hotel rooms are planned as part of the ‘Rou’a Al Ha- ram Al Makki development. With other projects already under construction or announced, the supply of quality hotel rooms could increase considerably by 2030. There were a number of comple- tions in the hotel sector in H1 2018 and further openings are expected in the second half of the year. Whilst residential rents and sales prices softened further in H1 2018, Makkah should experience a continued increase in prices as new projects enter the market. ”
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// construction business news me // August 2018 62 // Save the date Mark your calendar Save the date Light Middle East Dubai, UAE Armed with the most illuminating technolo- gies in the field, Light Middle East promises to put on a spectacular show come September. Light Middle East has established itself as the region's number one networking and sourcing platform for the entire scope of decorative, architectural, outdoor, and indoor lighting solutions, attracting a wide range of visitor profiles from around the globe. Visitors can expect a spectrum of the latest products, the most viable solutions and unmatched industry expertise. A show of great repute, the 12th edi- tion of Light Middle East attracted 5,755 visitors from 84 countries and 345 exhibitors from 30 countries showcasing their finest products and services to a highly engaged audience. Windows, Doors & Facades Show Dubai, UAE Put together by the organisers of The Big 5 Dubai, Windows, Doors and Facades Show is a one-of-a-kind event. It caters exclusively to the real estate, construction, and interior design industries. The show brings a whole host of global consultants, manufacturers, and distributors of windows, doors, and facade products - including Schuco, Orgada, Elumatec, Gulf Extrusions, Cladtech, and Reyn- aers, giving the regional businesses a unique platform for trading, exchang- ing ideas, and networking. The suc- cessful 2017 event attracted 5,000 visi- tors, 300 exhibitors from 64 countries and over 8,000 industry professionals covering regional and global markets. FM Expo Dubai, UAE FM EXPO is the Middle East’s premier event for the facilities management indus- try. Professionals from across the diverse facilities management disciplines will gath- er for three days of sourcing new products and services, enhancing their professional knowledge and networking with their peers. This highly educational and infor- mative free-of-charge event offers infinite opportunities to connect with industry peers, experts, vendors, and understand the competitive landscape. The nature of this event lends itself to facilitating meet- ings between businesses to help them get in touch with visitors and showcase their full range of services and solutions. Middle East Stone Dubai, UAE Middle East Stone is the MENA region’s premier B2B event for the natural stone, marble, and ceramics industry. Apart from showcasing the industry’s latest break- through products, it also attracts installa- tion and maintenance solution providers from more than 30 countries globally. Every section of Middle East Stone caters to the region’s construction and fit-out industry’s diverse range of product and service requirements, from the latest design and innovation in products and technologies to cutting-edge applications and industry best practices. Sectors within the exhibition include Stone World, Tile World, Gems and Minerals, Stone Design, Quarrying and Machinery, as well as Chemicals, Machinery, and Tools. September September September September 23-25 23-25 23-25 4-6
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