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THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS DECEMBER 2015 How Volvo CE is building the most innovative construction equipment company in the world How Africa can benefit from experience gathered in the Middle East on infrastructure and power project Analysis of Chinese influence on the regional construction industry and the businesses leading the way Project review of Crystal Lagoon’s latest 12.5-hectare CityStars Sharm El Sheikh project in Egypt THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS FEBRUARY 2016

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construction business news me February 2016 3 Editor’s Note News Supplier News IN PERSON Dean McGrail, director of property and buildings at WSP | Parsons Brinckerhoff, shares how culture should be understood rather than ignored for true success ANALYSIS Experts from Winston and Strawn examine how Africa can benefit from experience gathered in the Middle East on infrastructure and power projects COVER STORY Building tomorrow Volvo Construction Equipment along with its regional distributor FAMCO plans to integrate its new breakthrough concept into the market and help its customers with the future of construction COUNTRY FOCUS Stuart Matthews looks at the impact of Chinese influence on the regional construction industry and the businesses leading the way TAKE 10 Construction Business News ME picks out the top 10 global innovations in technology that could be part of every construction project in the next decade 6 8 16 16 24 26 30 36 26 36 contents

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construction business news me February 2016 4 S U B S C R I B E c o n t r i b u t o r s subscriptions@bncpublishing.net Managing Director Walid Zok walid@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Director Wissam Younane wissam@bncpublishing.net Group Publishing Director Diarmuid O'Malley dom@bncpublishing.net Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 Group Editor Melanie Mingas melanie@bncpublishing.net Editor Lorraine Bangera lorraine@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Sales Manager Mostafa Abdo mostafa@bncpublishing.net +966 56 6695 333 Sales Manager Joe Taphouse Joe@bncpublishing.net Sales Manager Vishvanath Shetty vish@bncpublishing.net +971 52 6745378 Marketing Executive Mark Anthony Monzon mark@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Construction Business News ME contact sales@bncpublishing.net T +971 55 339 5097 All rights reserved © 2015. Opinions expressed are solely those of the contributors. Construction Business News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Construction Business News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Construction Business News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by International Printing Press www.ippuae.com Stuart Matthews Marlow McGuinness Ltd ------- Joanne Bladd SUSTAINABILITY Shivram Mukherjee analyses the growth of sustainable skyscrapers in the UAE TECHNOLOGY KEF Holding chair Faizal Kottikollon discusses how investing in technology ties in with the long term vision of a company and how futuristic construction techniques are beginning to penetrate the GCC market. Construction Business News ME investigates Oryx Simulations’ advanced training simulators that help train new operators to use the machine in a matter of hours Ayman Jaber shares how different types of firms within the construction industry could use social media marketing to enhance brand awareness PROJECT REVIEW Carlos Salas, regional director of Middle East at Crystal Lagoons, talks about the company’s latest 12.5-hectare CityStars Sharm El Sheikh project in Egypt Construction Business News ME reviews the coveted Egyptian holiday resort and residences, Somabay, developed by Abu Soma Development Company, placed in the western shores of the Red Sea COMMENT As economic growth begins to slow once again, Melanie Mingas analyses how the machinery industry can adapt and thrive Naji Atallah examines 3D animation and visualisation, as it revolutionises today’s construction industry George Berbari examines the dangers of glazing and warns architects to account for the consequences of overusing glass MACHINERY Sheikh Khalid Bin Nassar Al Thani, chair of Khalid Bin Nasser, talks to Construction Business News ME about the new Foton Auman GTL Tractor Head SAVE THE DATE EDITOR’S PICK 40 46 48 50 52 56 22 44 58 62 64 66 52

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Porto Arabia Towers Doha, Qatar ©2014 Hill International, Inc. Hill International The Global Leader in Managing Construction Risk www.hillintl.com For nearly four decades, owners and developers in the Middle East have turned to Hill International to manage their construction projects and programs throughout the region. Hill is proud to have helped our clients turn their most challenging visions into realities. We have participated in over 10,000 projects with a total construction value in excess of $500 billion, managing all phases of the construction process from concept through completion. Hill is also the leading construction claims firm in the world, having helped resolve problems on some of the most complex projects throughout the Middle East and around the world. To minimize risk and maximize results on your next project, turn to Hill International Dubai Office: 971 4 227 0078 Doha Office: 974 4 435 8381 Corporate HQ: 800 283 4088 If you can imagine it, we can manage it. Qatar National Museum Doha, Qatar Mall of Qatar Doha, Qatar Viva Bahriya Towers Doha, Qatar

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construction business news me February 2016 6 Out with the old According to recent study Global Con- struction Perspectives and Oxford Eco- nomics, the global construction market is forecasted to grow by more than 70% reaching $15tr by 2025. That is a huge amount of growth due to take place in less than a decade, but the success of the next nine years will depend on the ability to innovate, just as much as economic stability. Constant innovation in technology over the years has brought us to an unprecedent- ed point, with advanced technology evident across the world. For instance, it is now possi- ble to build an entire structure on-site through 3D concrete printing in a matter of days. AEC professionals are increasingly using high-tech instruments to further perfect their projects and build efficiently, and building materials have never before been so inventive and sustainable. From healing concrete to augmented reality wearables, the market has opened up to much more creative technologies than ever before. According to the World Economic Forum, the construction industry has been evolving and is driven by technology, urbanisation, the need for a sustainable economy, and the in- creasing complexity and size of projects. The need for these advancements cannot be overlooked, with a massive rise for more urban space and thus more construction. The 2014 UN World Urbanization Prospects report found that by 2050 the number of people liv- ing in urban areas is expected to have increased by 12%, creating a demand for more infra- structure and buildings. The construction sector must not only build this new urban world, but follow the example set by the tech industry and entrepreneurial business space, through innovation and the in- vention of new business models, processes and products. What kind of a built environment could exist if glass and concrete alternatives had received the same interest and adoption rate as touch screen phones? There are systems in place to take this sector to the next level, with most technologies get- ting less expensive and more intelligent. With the help of new construction technolo- gies, the industry should be able to reduce the quantitative use of materials, reduce overall costs, and eliminate unnecessary waste, while creating cleaner environments for growing populations to inhabit. The next generation of advances will re- quire a more committed level of adoption by business owners and industry policy makers. The next phase of advancement will require a change in processes and a clear departure with how things have been done in the past. Regulatory frameworks can go some way towards addressing the urgent need for this, but the private sector must take the lead; drop the scepticism that has been seen around the adoption of new practices in the past and in- novate like never before. When a market as a whole begins to respond as a whole – the change is inevitable. editor’s note Lorraine Bangera Editor

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construction business news me February 2016 8 NEWS A sudden growth in medical tourism and the continued spotlight on Arab health issues has increased enquiries for real estate to accommodate incoming providers in the sector, according to Knight Frank. Real estate advice is vital to detect the feasibility of local and international practices expanding across the GCC. Matthew Dadd, partner at Knight Frank, said that the rising life expectan- cies, rapidly growing populations and per capita incomes, a high incidence of lifestyle-related diseases, and ambitious medical infrastructure projects are driving health care industry growth in the Middle East. “Real estate typically represents 40% of a hospital’s balance sheet—the third largest expense on the income statement and all too often, healthcare real estate is an untapped asset.” With increasing medical clusters in the GCC including Dubai Healthcare City (DHCC), Dubai and Dilmunia, Bahrain, and Mubadala Healthcare’s venture with the Cleveland Clinic in Abu Dhabi, the region has potential to expand its medical tourism industry. Another point to consider is that it is not just large scale projects and global brands looking at entering the Middle Eastern markets, but from smaller clin- ics, dentists, physiotherapists and specialist diagnostic centres. UAE-based Etihad Rail announced it will be suspending its tendering pro- cess for stage two of the project, Re- uter has reported. The suspension was made in order to review the investment and the op- tions for the timing and delivery of the second phase of the project. How- ever the move has caused apprehen- sion regarding the current economic climate in the face of new lows in the oil price. The stage two included the con- struction of a rail network in Abu Dhabi that connects the borders with Saudi Arabia and Oman along with areas in the UAE. “Etihad Rail is one of the biggest and most complex infrastructure proj- ects ever undertaken in the UAE,” Nasser Alsowaidi, the chair of Etihad Rail, told local paper The National. “A decision has been taken to suspend the tendering process for stage two while we review the most appropriate timing for this investment.” Etihad Rail suspends tendering for stage two Boost in medical tourism increases demand for real estate For News, features and more, Visit www.CBNme.com Follow us on twitter for breaking news: @cbn_ME Follow us on Facebook for up-to-the-minute breaking news Read the latest edition on www.CBNme.com NEWS

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construction business news me February 2016 9 Dubai Electricity and Water Authority (DEWA) has awarded a contract to ex- tend its water network to meet the needs for water and building infrastructure in the future. The AED130m project is ex- pected to be completed in 30 months of its start date. H.E. Saeed Al Tayer, managing direc- tor and CEO of DEWA, said: “Through a variety of projects, DEWA continues to increase its level of efficiency in all its operations, to support sustainable de- velopment in the emirate. These projects include the 600-1,200 millimetre per di- ametre extension of Glass-Reinforced Ep- oxy main water pipelines, using the Non- Destructive Road Crossing tunnel-digging method to protect the infrastructure and services for major water transmission net- works located around Dubai.” The NDRC network will be launched and will be fully-operational once all ex- tension work has been completed. MEED Projects’ latest forecast reveals the value of contracts awarded in the GCC will significantly drop by 15% in 2016. The total value is predicted to be $140bn this year, compared with $165bn in 2015. The estimation is based on 2,100 planned and un-awarded projects in the region. Ed James, director of content and analysis at MEED Projects, said: “With oil prices hitting 11-year lows, there is no real surprise that project spend- ing is forecast to fall in 2016. However, it does mean that it will be a tough 12 months for companies in the sector as the number of project opportu- nities is reduced.” DEWA awards AED130m contract to extend major water network Overcapacity threatens to redraw the steel industry due to the unsus- tainable current price of goods, according to Turkish Steel Exporters’ Association Board Member Ali Pandir, speaking at the 19th Middle East Iron and Steel Conference. Adding the problem has long endured in the global steel industry, he said it is crucial for the companies to consolidate and stated this may even require the shutdown of some mills even in China. Pandir continued his remarks by expressing that the protectionist policies have become a trend in virtually every country of the world, except Turkey. The comments were met with claims that Turkish steel producers are subsidised and that the devaluation in Turkish Lira helped Turkish steel producers reduce their costs, Pandir explained the Turkish steel industry cannot be subsidised pursuant to the ECSC Treaty signed in 1996 and that the prices are kept low only because of the increase in effective production, intended to make the country more competitive. A consortia of 23 Turkish steel exporters from 18 Turkish steel companies held 250 meetings with 45 companies during a trade mis- sion organised parallel to 19th Middle East Iron and Steel Conference. The exporters, who have carried out a number of projects in Dubai, visited the UAE with the purpose of further existing trade relations on a trip organised by the Turkish Steel Exporters’ Association as a part of URGE Project of the Turkish Ministry of Economy. Oversupply ‘a threat for all steel industries’ Kuwait The country is the third largest proj- ects market in the GCC with a high record of contracts worth $31.5bn in 2015. This year, it will fall to $24.3bn. Qatar Contract awards to fall by $7bn. Saudi Arabia The Kingdom will probably be the worst hit because of falling revenue as oil price drops. The contracts awarded will witness a drop of $10bn, to $40.7bn in 2016. Bahrain Similar to Oman, Bahrain will also maintain last year’s spending lev- els at $2.8bn. UAE UAE will maintain continuing spend- ing in the Dubai real estate and in- frastructure sectors. Contracts will probably fall slightly to $36.5bn in 2016 from $37.4bn in 2015. Oman Comparatively a smaller market, Oman will maintain last year’s spending levels at $13.5bn GCC construction contracts to drop by 15% this year Country focus

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construction business news me February 2016 10 NEWS Nakheel awards AED18.5m contract to DX Contracting LLC and National Gulf Construction LLC to deliver new roads for JVC. The developer announced the opening of three new JVC or Hessa Street link roads later this year. Work will begin this month, with anticipated completion in Q3 2016. The contract enables the construction of new JVC ac- cess points, which will improve traffic flow and reduce travel time for JVC residents. A Nakheel spokesman said: “Around 20,000 people currently live in JVC, but this rapidly-growing mixed-use development will accommodate some 300,000 people when complete. The new road links will enhance JVC in both the short and long term by tackling the immediate needs of residents and addressing the future needs of the community as it expands.” Nakheel awards AED18.5m contract for new JVC access roads Masdar has announced an agreement to develop a commercially-driven utility- scale 200 megawatt (MW) photovoltaic solar plant in Jordan. The announcement was made at the World Fu- ture Energy Summit (WFES) in Abu Dhabi. The agreement with Jor- dan’s Ministry of Energy and Mineral Resource (MEMR) follows after the inaugura- tion of Masdar’s first invest- ment in the 117MW Tafila wind farm in the Hashemite Kingdom. The wind farm, a JV between Inframed, EPGE and Masdar, will account for almost 6.5% of Jordan’s 1,800MW renewable energy target for 2020. In addi- tion, it will create enough electricity to power 83,000 homes while reducing the country’s carbon emissions by 235,000 tonnes annually. Both energy projects goes in line with Kingdom’s 2010 renewable energy law that calls for 15% electricity to come from renewables by 2020. Masdar has committed more than $1.7bn to renew- able energy developments, with 1GW of clean power in the UAE and other coun- tries across the globe. Dr Ahmad Belhoul, CEO of Masdar, said: “Jordan is a key market for Masdar in the MENA-region. With re- gional energy demand set to double by 2030, we believe the majority of that growth will be met from renewable energy. This growth repre- sents a strong business case for renewables, not just in Jordan, but also across the wider MENA region.” H.E. Dr Ibrahim Saif, Jor- dan’s Minister of Energy and Mineral Resources said: “This project is an in- vestment in Jordan’s future energy security. It reflects the vision of His Majesty King Abdullah II to reduce the Kingdom’s reliance on imported energy and limit our carbon footprint. We believe the project will stimulate the investment climate for similar renew- able energy projects in Jor- dan and will strengthen our status as a new and impor- tant destination for renew- able energy investments in the region.” Masdar to develop 200MW solar project in Jordan Nakheel villas at JVC master development Dubai World Trade Centre (DWTC) broke ground on the second phase of Dubai Trade Centre District (DTCD) worth AED720m. The first phase of the development was completed on time, last November. Phase one included an eight storey office building and a 588-room Ibis Hotel. Contractor Al Futtaim Carillion, responsible for phase one, attained a safety record of 5.6 million man hours of Zero Loss Time Incidents (Zero LTI). The same contractors have been chosen to construct the second phase. The phase comprises two Grade A office properties of eight and 12 storeys designed by Hopkins Architects and WSP. Gurjit Singh, SVP of Real Estate at DWTC, said: “Phase one has successfully attracted blue chip commercial ten- ants to our Grade A, single ownership, large floor plate, office space. This demand is expected to continue in phase two.” DWTC breaks ground on second phase of Dubai Trade Centre District DWTC breaks ground on second phase of Dubai Trade Centre District

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construction business news me February 2016 11 DSCE and FEDARENE to share best practice in sustainability According to Dubai-based real estate firm Knight Frank, Nigeria has been attracting international investment through its robust economic growth and wide range of investment opportunities. In a research bulletin, Knight Frank says the growth has been driven by strong population trends, a diversifying economy and an evolving urban environment. Property sectors are particularly booming in the na- tion’s top cities, Lagos and Abuja. The Dubai Supreme Council of Energy (DSCE) signed an MoU with the European Federation of Agencies and Regions for Energy and the Environment (FEDARENE) at the World Future Energy Summit last month. In line with the agreement, the two parties will share ex- perience and best practices in energy-related areas includ- ing policymaking, technology development, green-financ- ing mechanisms, awareness programmes, green buildings, smart homes, and energy management and efficiency. H.E. Saeed Mohammed Al Tayer, vice chair of DSCE, said: “Our partnership with FEDARENE will promote the implementation of innovative and effective measures, and increase awareness on energy efficiency and de- mand side management.” At WFES, the Dubai Supreme Council of Energy is showcasing the Dubai Integrated Energy Strategy, which was recently reviewed in line with the Dubai Clean En- ergy Strategy 2050, launched to provide 7% of the Emir- ate’s energy from clean sources by 2020, 25% by 2030 and 75% by 2050. Al Tayer said: “The Dubai Integrated Energy Strategy 2030 aims to diversify Dubai’s energy mix to include 25% from solar energy, 7% from clean coal, and 7% from nuclear power, and 61% from natural gas by 2030, and reduce energy use by 30%.” Nigeria: The next hotspot for real estate investment Aerial view of Lagos, Nigeria DSCE and FEDARENE at WFES 2016 Some of the key highlights mentioned in the bulletin include: • With a GDP of $594.3m, Nigeria is currently the biggest economy in Africa. • Africa’s economic growth is anticipated at 7% over the next four years. • Nigeria is Africa’s most populous country, with Lagos and Abuja being among eight cities with populations over one million. • By most estimates, Lagos has already overtaken Cairo as Africa’s biggest city and its population may be close to 40 million by 2050, making it a true global megacity. • Prime office rents in Lagos are among the highest in Africa, with only a handful of buildings able to provide high quality space. • Abuja is a modern planned capital city which is seeing increased development activity, including the huge WTC Abuja scheme. • Land reclamation is underway for the vast Eko Atlantic project, which will create a new city district off Victoria Island, Lagos. • The retail sector is developing rapidly, with increased numbers of modern malls being built, such as Ikeja City Mall in Lagos.

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construction business news me February 2016 12 NEWS The Arab-Brazilian Chamber of Commerce (ABCC) announced an exten- sive increase in Brazilian exports of construction machinery to Arab coun- tries in 2015. According to statistics, Arab countries have purchased $226.31m worth of machinery in 2015, which marks a growth of 7% from 2014, while the export of construction goods remains stable at $41.31m in 2015. Top three importers of Brazilian machinery include Egypt ($63.82m), Saudi Arabia ($56.23), and the UAE ($50.97m). Dr Michel Alaby, secretary general and CEO at ABCC, said: “The robust trade of machinery and construction goods from Brazil to the Arab World re- inforces growing popularity of high quality Brazilian products in the regional markets. Arab countries have shared extremely amicable business relations with Brazil and have contributed significantly to local economy by regularly exporting Brazilian products and the demand will continue in the mid- and long-term in light booming Arab construction sector.” Dubai Parks and Resorts mission to bring lush vegetation to its desert destination is now underway with the acquisition of 15,860 trees, 6,100 palms and over 1.4 mil- lion shrubs and groundcovers. Planting has already begun at the re- gion’s largest integrated theme-park des- tination in preparation for its opening in October 2016, with an on-site nursery also established to house and nurture the re- maining greenery. So far, over 350 Washingtonia palms have been planted with over 3,650 being tended to in the nursery. In addition, different sizes of the red flowering Delonix tree can be found throughout the grounds, with heights ranging from nearly 1.8 metres to an impressive 8 metres. The nursery, which is part of the back of house operations, is almost two mil- lion sq.ft and has the capacity to house over 15,000 trees and palms and more than 900,000 shrubs and groundcovers as the project progresses. The nursery also has four greenhouses with a capacity of more than 100,000 pots each. DPR also has an onsite water treatment plant which it expects to provide up to 30% of the treated water needs for the resort once open. The plant means that waste water can be efficiently treated on-site and reused for landscaping. Aldar Properties acquired a commercial office building, Daman House, in Capital Centre Abu Dhabi on 19 January 2016. The building comprises 23,000 square metre GLA of Grade A commercial space, fully leased on a long-term contract to a single government related entity. Aldar aims to grow its recurring reve- nue portfolio through investment in new and existing revenue producing assets. This was the first purchase made as part of the company’s AED3bn investment programme to drive growth within its re- curring revenue business to achieve its new target of AED2.2 bn Net Operating Income (NOI) by 2020. Approximately AED900m (30% of the programme), has been already commit- ted through the Daman House transac- tion, the extension of Al Jimi Mall in Al Ain and the expansion within Aldar Ac- adamies through the construction of the Al Mamoura School in Abu Dhabi, an- nounced in November 2015. Mohamed Al Mubarak, CEO of Aldar, said: “The acquisition we are announc- ing today fits perfectly with our strategy of increasing our recurring revenue base and demonstrates our ability to take ad- vantage of value accretive opportunities when they arise.” Aldar grows revenue portfolio through latest acquisition ABCC records a 7% growth in Brazilian machinery exports to Arab markets DPR plants an extensive landscaping programme on-site Mohamed Al Mubarak

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construction business news me February 2016 13 The Jebel Hafeet Emirati Housing Proj- ect will be the first residential com- munity in Al Ain to benefit from eight new mosques which will be com- pliant with the Abu Dhabi Mosque Development Regulations. The design of the mosques, includ- ing the designated use, building materi- als, and sustainability features, will be evaluated by Abu Dhabi Urban Planning Council’s (UPC) Abu Dhabi Mosque De- velopment Regulations (ADMDR). The mosques will be built within a mega project consisting 3,000 villas, as well as amenities including schools, health facility and retail. Currently under construction, the development stretches over 4.4 million metres squared to the west of Jebel Hafeet and approximately 13 kilometres south of Al Ain City Centre. Jebel Hafeet Emirati Housing Project is being constructed by Tamouh Invest- ments under the project management of Musanada (Abu Dhabi General Services Company). It is in the final stages of con- struction ahead of the scheduled hando- ver during this year. The mosques will make extensive use of shaded external space for prayer and are designed to maximise the cooling effect of the wind, which is common in Emirati mosque vernacular design. In addition, the simple prayer hall propor- tions – again true to traditional Emirati design – allow prayer spaces to be used efficiently by closing off large areas that are only required for Friday prayers to reduce the amount of air conditioning re- quired during quieter periods. Al Ain project to exhibit new mosque design regulation A bridge project has been approved by Dubai’s RTA to extending from Al Khail Road to the Financial Center Road. The project, which has a cost tag of AED120m, is expected to be completed early 2017 and was backed by both the RTA and Emaar Properties. “The project comprises the construction of a two-lane bridge linking Al Khail Road with the Financial Center Road over a sector extending 920 me- tres in length with a width ranging from 11 to 15 metres. The bridge would be built on individual piers and pass across the Dubai Water Canal. The project also covers lighting and infrastructural works including the diversion of impacted utility lines such as water, electricity, irrigation, sewage and telecommunication lines,” said Al Tayer. The project starts from the intersection of Ras Al Khor Rd with Al Khail Rd to ensure streamlined traffic flow. The existing road would be widened by adding two lanes in a sector stretching 480 metres in order to ensure a seamless traffic movement from Dubai-Al Ain Road to Al Khail Road along the upper deck of the Financial Centre Road. It also includes adding an entry point to the parking terminal attached to the expansion of the Dubai Mall. “The project would improve the traffic flow along the Financial Centre Road and at-grade intersections by reducing the density of traffic at junctions leading to Mohammed bin Rashid Boulevard. The project would result in raising the road intake to 4500 vehicles per hour during peak hours, besides serving several development projects, and easing the pressure on the exist- ing roads network,” he added. RTA awards contract for upcoming bridge project Jamee Mosque

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construction business news me February 2016 14 Dorma Gulf launched the ST Flex Green sliding door solution to provide a high grade of eco-friendly, slender and profile entrance routes. The ST Flex Green, certified with an Environmental Produc- tion Declaration (EPD), is designed to function as aesthetic sliding doors. The solution is also suitable for emergency exits and escape routes that incorporate energy efficiency. German-tested thermal insulation with energy saving regu- lation, EnEV 2009 and the Dual Drive technology within the system enables reliable executive of emergency exits. Agy Mathew, product marketing manager at Dorma Gulf, said: “Elegant sleek profiles, with no compromise of luxury is the USP of this product. The excellent interlocking side seals and top and bottom seals add more benefit to the solution.” The system brings together low thermal transmission co-efficient, making the doors energy-efficient by effectively controlling the heat transferred from outside its facility, within. Compliant with the German energy-saving regulation, the EnEV 2009, the ST Flex Green is a very sustainable and reli- able interior set-up and entrance solution designed to match with a building’s overall appeal. T ruck manufacturer, Daim- ler Trucks, has signed let- ters of intent with its Iranian partners, Iran Khodro Die- sel (IKD) and the Mammut Group, to return to the Ira- nian market. The cooperation will in- clude a joint venture (JV) for local production of Mer- cedes-Benz trucks and pow- ertrain components along with the establishment of a sales company for Mercedes- Benz trucks and components. There are plans for Daim- ler to return as a shareholder in the former engine JV Ira- nian Diesel Engine Manufac- turing Co. (IDEM). Daimler and IKD are set to benefit from each other’s competitive advan- tages to satisfy the large demand for trucks. Dr Wolfgang Bernhard, member of the board of management at Daimler AG responsible for Trucks and Buses, said: “There is a huge demand for commercial ve- hicles, especially trucks, in Iran. We plan to quickly resume our business activi- ties in the market there. The signing of the letters of intent with our local partners IKD and Mammut Group are im- portant pre-requisites to re- sume business quickly.” The nation’s pent-up de- mand in the transport sector offers promising opportuni- ties for Daimler Trucks. With an increasing potential fol- lowing many years of sanc- tions, Iran has been one of Middle East’s largest national economies. Iran’s nominal GDP in 2014 was $415bn, with industry sector account- ing for almost half of the Ira- nian national economy. The Ministry of Industry, Mine and Trade estimates that about 200,000 commer- cial vehicles will be replaced the upcoming years, with 56,000 of them in the next three to five years. S anipex Group an- nounced supplying a wide range of bathroom and washroom solutions for the upcoming Opera District. According to the supplier, designers picked the group for its quality fixtures and fittings to give visitors an excellent impression of the facilities on offer. The Opera District, locat- ed in Downtown Dubai, will feature a 2,000 seat multi- format Opera House, two hotels, a roof-top restaurant, design studios and galleries. From the sanitary ware through to accessories, the design of the washrooms and bathrooms throughout the Dubai Opera District needed to be functional and stylish, and with products including brand names such as Bagnodesign, Aquazone and Galassia. Products chosen for this prestigious project in- clude M-Line brassware, Montecristo glass washba- sins, Urban wall-mounted WCs and Community wall- mounted urinals. Daimler Trucks plans on return to Iranian market Sanipex provides bathroom solutions for Dubai Opera District Dorma Gulf unveils ST Flex Green Sliding Doors SUPPLIER News Daimler’s Fuso range Dubai Opera House

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OHSAS 18001 certified ISO 9001, 14001 and 130+years of project experience LEED Platinum, LEED Gold and LEED Silver Capability End to End Integrated Solutions Pioneering Engineering Construction since 1881 www.drakescull.com 700+ Projects Delivered For over 130 years, Drake & Scull International PJSC has been shaping skylines and transforming the lifestyle of communities around the world. Drake & Scull is an industry leader, with a proven history of delivering more than 700 projects through its General Contracting, Engineering, Rail, Oil & Gas, Water and Wastewater Treatment and Infrastructure development business streamlines across the region.

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construction business news me February 2016 16 Cultural benefits Dean McGrail, director of property and buildings at WSP | Parsons Brinckerhoff, manages over 500 people across the Middle East. After a quick yet diligent climb up the corporate ladder, McGrail has absorbed every experience as a learning lesson from his time in university to working in the East and the GCC. He shares how culture should be understood rather than ignored for true success. Lorraine Bangera writes IN PERSON

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construction business news me February 2016 17 B y combining opportunity and hard work, Dean McGrail has climbed the ranks with WSP – Parsons Brinckerhoff, over the last decade. Now in his late 30s, McGrail looks back at his life and subsequent climb up the ladder. At the time, the young Brit from Leeds was sure he wanted to do something dif- ferent with his life. While he was in uni- versity, he changed his major from geol- ogy and geophysics to fire engineering after having a look at its interesting sylla- bus. “Back then, the course was new – it had only been running for two years.” This, however, did not scare Mc- Grail; better yet it proved to be the right move for him, as when he reached graduation there were many companies lined up (particularly in the oil and gas sector), hunting for fire en- gineers. “That’s how I landed my first job in Manchester, as a fire protection designer for power stations.” Even though McGrail bagged a great opportunity right after university, he craved for adventure in foreign lands. “It was one of my major passions. I had a strong desire to work overseas but as hard as I tried, the furthest away I got to go was Newport in Wales!”, he jokes. After shifting a couple of jobs, an op- portunity presented itself in Hong Kong and McGrail promptly seized it. In 2001, McGrail made his way east to Hong Kong which embarked his journey with creating buildings. Growing in the East “A lot of things were very different at the time. China was growing,” he observes. Not long after McGrail set himself up in Hong Kong, WSP came knocking on his door with a job offer. The company was looking to establish a fire engineer- ing team. Not only was McGrail still in his early 20s, he was also only in Hong Kong for three or four months. He recalls thinking what a huge step this would be for him, and an amazing opportunity. Without batting an eyelid, he sealed the deal and has been with the company ever since. “WSP has always been a very dynam- ic, young company,” McGrail reveals. “If you have value to add, they will give you the opportunity. For me, they gave me the opportunity, support, and structure to perform my best.” Growing from strength to strength, and building a reputable fire engineering ca- pacity in Asia, McGrail managed to get noticed over the years for his impeccable work ethic. Things became even better when the China market began to expand tremendously. “At the time, not a lot of people had experience. And even though I was New York University Abu Dhabi The Shard - Image courtesy of WSP | Parsons Brinckerhoff. Photographer Nicola Evans young, the dynamic started to change, and I was sort of the ‘experienced’ one with international know-how.” McGrail used this time to move around, from Hong Kong to Shanghai and then Beijing. “We tried our best to establish re- lationships, helping clients to break into the region.” He admits that there were a lot of pit- falls, but in return they educated him with more and more experience. Moving to the Middle East McGrail soon was presented with an- other opportunity to work overseas. But this time, it was the Middle East, with one of WSP’s first project in the region, after Rolex Tower in the early 1990s. McGrail and his team made their way to UAE to work on the Mall of the Emirates (MOE), a project that recently celebrated its 10 year anniversary. The director was involved in MOE from 2003 until it officially opened in 2005. WSP was also involved in a num- ber of follow-up works such as the fash- ion avenue expansion, metro link’s ex- tensions, a number of feasibility studies and upgrades. McGrail has been in the GCC for over a decade now, and he thinks the market here is like no other. “There are tremen- dous improvements made every year.” If anything were lacking, he says, it would be the number of talented profes-

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construction business news me February 2016 18 IN PERSON sionals in the construction industry. “In the GCC,” he argues, “there are many talented people but there is also a great need and demand for more. “People are coming in from all over the globe. I think the Middle East is in a position where it needs to try and put in some controls on who is working on their projects.” He admits that in the beginning, peo- ple who made their way to the GCC were young, unmarried and had no family. Most of them lacked experience as professionals. But now, that is chang- ing.” He claims that before the financial crisis in 2008, there were a lot of peo- ple coming in but not necessarily ex- perienced. And now, there is a better mix of people coming in and already settled here. Regional experience could be ex- tremely important while trying to find your feet in the GCC construction mar- ket. In fact McGrail says that he is happy about his prior Asian experience as it has helped him become more understanding of markets that are culturally different than his own in the UK. Leading a team In the GCC, McGrail leads a team of 570 people working under him in the property and building department in the Middle East. “I have a really good leadership team working below me and a lot of fantastic team members I would like to promote,” he beams. “As WSP gave me the oppor- tunity when I was young, I want to do the same for some of the brilliant people working under me. Especially the ones that are really passionate about what they want to do.” He observes that most companies in this industry and region, tend to be age or qualification driven. “The process of a promotion tends to get quite bureaucrat- ic which makes it tough for employees to grow within a company.” What his team tries to advocate is that every employee has the opportunity to grow and be part of the leadership team. He sees a lot of employees tend to leave a company when they look at leadership roles and think that Dubai Mall Expansion they deserve to be there and cannot be. McGrail discusses that most young employees come across a common ad- versary which is the perception of inex- perience. “More than 25 to 30 years of experience, does not necessarily make the employee more skilled than someone with 10 years of experience.” With the GCC being a new market, Mc- Grail thinks it does push younger people to achieve more; quite different to Asia, as it was when he was there. “Asia is dif- ferent now, but at the time, it very much focussed on age.” Somehow that factor motivated Mc- Grail to be better. He used his so-called limitation to drive him to be better. For instance, every time he went to a meet- ing, he made sure he was as prepared as he possibly could be to make sure no matter who was sitting at the opposite end, he would be more prepared. In construction, McGrail says the key is to do your best. “A lot of it is about

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construction business news me February 2016 19 delivery. If you win a project, you have to deliver. You’re only as good as your last project.” McGrail stresses that age is not nec- essarily an important factor that helps you succeed, but drive, ambition, and the willingness to understand differ- ent cultures plays a bigger role than people realise. Culture and other codes He suggests that Asian markets and GCC markets are in fact quite similar in a lot of ways. In the last decade the GCC has grown in leaps and bounds, and McGrail discerns that this is the same dynamic that took place in Asia around a decade ago. To demonstrate the tremendous growth Asia has witnessed in the last 10 years, he compared cities then and now. He says: “When I was living in Asia, Shanghai was a first tier city where all the growth was happening. Nowadays, our One World Trade Center - Image courtesy of WSP | Parsons Brinckerhoff - Photographer Nicola Evans company is involved in super tall towers about 300 metres and 600 metres in what has been called third tier cities.” He matches the phenomenal growth of both regions and conveys that they are truly very similar. “Both regions observe the rest of the world, learn, and then adapt it into their own markets.” Another key similarity, McGrail points out is how Asians and GCC nationals are very proud of their culture and tend to push for what they want. By observing the culture and the way a foreign market works, he has won brownie points while establishing him- self in unknown territory. To be success- ful in any other market, he states, it is important to understand the cultural dy- namics at play under the surface. “It is when you travel and work in different lo- cations, that you broaden your perspec- tive and unlock more learning.” He explains: “When you go to a dif- ferent country and be part of a differ- ent culture, you change your percep- tion of it and understand how the local people work.” For him, the Asian experience was key to his growth and prosperity. He reasons, that in order to be success- ful in a region one mustn’t try to change the market but go along with it. He uses the Colloquial Colonialism podcast that plays in Emirates Airlines to further prove his point. “The podcast talks about the perception of going to another nation and telling them how to do things. “Look out of your window… look at what this region has done in the last de- cade, how are you possibly going to tell them what to do?” He maintains that the way to work well with a new culture is not by fighting it but adapting to it. “You cannot impose your views in this region, it is not the way to establish relationships in this region, or any other.” Grateful for his lessons learnt in Asia, McGrail admits that had he not gone to the East before GCC, he would not have had this sort of a perception at all. For now, he says that the GCC has been his home for the last 11 years and he is very proud to have been part of building a nation – quite literally – with the team at WSP.

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construction business news me February 2016 20 Awards Construction Innovation Awards A fter a successful inaugu- ral awards ceremony on 18 October 2015 in Qa- tar, Construction Busi- ness News ME’s Con- struction Innovation Awards (CIA) is set to launch in Saudi Arabia on 16 March 2016. In recognition of the highly active trillion-dollar construction industry, the annual celebration will be con- ducted at the Four Seasons Riyadh. Construction Business News ME magazine is positioned as a platform for construction profes- sionals to spark and engage in industry-leading dialogue. The title’s “for us, by us” approach to publishing places it at the very heart of the industry on which it is focussed and this theme is central to the Con- struction Innovation Awards series. As GCC states continue in their am- bitions to rapidly urbanise the desert with world-class and standard-setting social, civil and commercial infrastruc- ture, as well as private developments, the Construction Innovation Awards shines a light on the projects, project managers and architects – as well as their protégés – who continue to in- novate the industry as it moves into an era of stability and economic growth. Nomination procedure Nominations are currently open for all regional companies that have active projects in Saudi Arabia. To nominate your company/ company’s project/ or or any supporting visual informa- tion is not mandatory, but will help in the judging process. If you are submitting any supporting visuals, please list in your submission docu- ment the file names and method of transfer of each of these The submission document must be signed, scanned and sent to awards@ bncpublishing.net by March 1, 2016. In submitting the nomination you con- firm that all the information provided in the submission is true and accurate Please note, a separate submission is required for each category you wish to make a nomination for. an employee or peer, please follow the instructions below: On a separate document list the fol- lowing information: • Company name, regional CEO’s name, category nominated for • Name of project/ company/ employ- ee or peer • Write in no more than 500 words why you are making this nomina- tion. Include all information rel- evant to achievements, innovative features, new construction methods, or record breaking/holding project features • Images, project sketches, renderings

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Categories Submissions to the Construction Innovation Awards will be judged by a board of the industry’s finest and most respected leaders, across the following categories: • Innovation of the Year • Health & Safety Initiative of the Year • Sustainable Project of the Year • Supplier of the Year • Young E ngineer of the Year • Contractor of the Year • Engineer of the Year • Overall Project of the Year • MEP C onsultant of the Year • Specialist MEP C ontractor of the Year • Project Manager of the Year • FM C ompany of the Year • Residential Project of the Year • Best D eveloper • Lifetime A chievement • MEP C ontractor of the Year • Commercial Project of the Year • Fastest G rowing C ompany of the Year • Best C hemical Supplier for C onstruction construction business news me February 2016 21

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COMMENT GCC; preventative maintenance and driver education. The total value of project contracts in 2015 may have been $2bn less than 2014, but projects still exist and prog- ress must be continue. Ever optimistic, at the time that evaluation was made analysts attributed the drop to lower oil prices leading to building materials and transport costs falling too, with a trickle-down effect to contract values. Today’s projects aren’t urban de- velopment plans or record breaking residential towers – the words Expo and FIFA barely require mention. This time the existing projects have a finite deadline and the eyes of the world upon them. For the machinery and plant vehicle market, how such a competitive streak will play out in terms of dynamics, is anybody’s guess, especially when counterfeit parts are added to the com- petition mix. New challenges are on the horizon, and they must be faced. Adding Value As economic growth begins to slow once again, Melanie Mingas analyses how the machinery industry can adapt and thrive used more and more. At The Big 5, MAN Trucks focussed on pushing its aftersales service, a new range of refurbished parts under the Ecoline concept, and the purchase of used models, rather than competitor. MEA managing director Franz Freiherr von Redwitz said at the time: “One thing we are pushing big time is the after sales business and keep- ing the vehicles on the road. Where liquidity is tough or prices are bad, we can compensate with initiatives to keep the vehicles on the road. “We are pushing the sales also of used vehicles. If investment funds are shrinking it is better to buy used, than from a cheaper source market, because the truck will last. It is still a MAN, even if it is a few years old,” he continued. Over and above this, the firm is specifically pushing other busi- ness solutions: financing; telemat- ics, which recently launched in the T imes are tough. Hit by a string of unprecedented – and at times unexpected – economic issues, from a slowdown in China to a free to trade Iran and a plummeting oil price, unstable markets are now erring on the volatile and many, still scarred by the memories of 2008, are prepar- ing for the worst. The impact of this on the machinery market is already being felt, but not in the same way as it has previously. Machinery demands a sizeable por- tion of project budgets, and contractors and developers want to cut costs. Inte- grating operations to schedule phases in a way that reduces how long each equipment set is in use for, is a skill this region has yet to fully master. The pitfalls of buying from China are known, counterfeit parts are fac- ing new challenges in reaching the market – today’s customer wants more for their money and slowly but surely machinery manufactures and retailers are being forced to add value. When it comes to new machines, there is no shortage of market debuts. MAN, Volvo and Continen- tal among others, have all brought new machinery to market in recent months and The Big 5 2015 was a who’s who of big brands and new launches; likely one of the busiest years in recent memory. Each claims to have bigger and bet- ter performance, efficiency and safety features than the last, other or next, which is great news for the construc- tion industry moving forwards, but the point remains: clients don’t want to part with the cash. It’s a buyers’ – or renters’ – mar- ket, there is no doubt, with the terms “lifetime warranty”, and “finance” construction business news me February 2016 22

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construction business news me February 2016 24 ANALYSIS Partner James Simpson, counsel Katharine Sonneborn, and associate Giulia De Michelis at Winston and Strawn examine how Africa can benefit from experi- ence gathered in the Middle East on infrastructure and power projects Africa: The Infrastructure Gap O ver the last decade, Af- rica has, for the most part, demonstrated re- silient economic per- formance. But, by most measures and in most regions, sustain- able and affordable energy develop- ment has not kept pace with economic growth. With the rising demand for power, Africa could witness a contin- ued infrastructure gap which presents a genuine risk to its growth. According to the World Bank, 25 of the 54 African countries are in an energy crisis. In Sub-Saharan Africa, only seven countries have electricity access rates greater than 50%, which means more than 600 million people (approximately two-thirds of the con- tinent’s population) lack access to electricity. African governments have responded with conventional and re- newable energy investment growth initiatives. Such initiatives include an opening of markets to private inves- tors, the adoption of regulations to en- hance transparency and legal certainty, and feed-in-tariff schemes to promote the deployment of renewables. While many government initiatives have been met with great success, such as South Africa’s Renewable En- ergy Independent Power Producer Pro- curement Programme, others have not been as well received. The experience and lessons of successful Independent Power Projects (IPPs) and Independent Power and Water Projects (IWPPs) in Arabian Gulf countries and the wider Clearly one model will not fit all and the variety and complexity of economic and political considerations across the African continent cannot be underesti- mated. Drawing on the Middle Eastern experience can make a vital contribu- tion to the successful development of power projects in Africa. Project par- ticipants should feel confident that with the establishment of a process which follows generally acceptable procure- ment standards, Africa will continue to represent a significant and exciting op- portunity for the power project market. In this article we examine and con- sider six key lessons from our Middle Eastern experience and how they may contribute to the effective development of power projects in Africa. The Middle East: A (very) brief history of IPPs and IWPPs The Middle East took on the challenge of the infrastructure gap in part by de- veloping IPPs and IWPPs. Both have played a major role in the electricity and water sector in the Middle East providing for significant additional generation and water production ca- pacity in the region. Abu Dhabi alone has procured one IPP and nine IWPPs, the most recent being the Mirfa IWPP, which closed in October 2014, result- ing in an aggregate of approximately $14bn of finance raised and over 14,500MW of contracted capacity. The Abu Dhabi model has also been suc- cessfully adopted, with certain varia- tions, by other countries across the re- Middle East over the last two decades can serve as guidance for Africa. The parallels are important – many parts of Africa have the same opportunities as Middle East countries had when de- veloping their IPP/IWPP programmes, including significant economic growth, increasing consumer demand and an abundance of natural resources against a backdrop of strong interest from the international investor community. However, Africa faces a number of challenges – as the Middle East has faced and overcome – such as scepti- cism related to political risk and per- ceptions of inefficiency. James Simpson

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construction business news me February 2016 25 gion, including Qatar, Bahrain, Saudi Arabia and, more recently, Kuwait. What lessons can be applied in Africa based on the Middle East experience? A clear, fair and consistent independent regulatory regime The Middle East experience demon- strates the benefit of having a clear and consistent independent regulatory re- gime which is built to respect political realities but at the same time facilitates private investment and ensures fair reg- ulatory oversight from both the public and private sectors. For example, in 1998, Abu Dhabi is- sued comprehensive legislative frame- work, governing its power and water sectors, including a coherent regulatory regime, the provision of guidelines for the development of IPPs and IWPPs and, critically, the establishment of an independent regulator. A transparent procurement process A thorough, transparent procurement process is essential and project pro- curement should be by reference to specific non-discriminatory criteria and open to appropriate public scrutiny. For example, the opening of financial bids should take place on the bid sub- mission date and in public. A well-structured and consistent contractual template It is also important for projects to be well structured and follow a contrac- tual template that delivers bankable projects while not requiring extensive reworking for each new development. In the Middle East, the legal contrac- tual matrix, with the power purchase agreement (PPA) at its heart, has rig- idly followed precedent through the IPPs and IWPPs across the region, regardless of changes in commercial terms or market conditions. Bankability: Stability and strength of supply and off-take arrangements In particular, the key to success is en- suring there is a bankable contractual structure. The PPA should ensure a source of revenue over a tenor which is sufficient to ensure the repayment of the project finance loan and provide a return to investors. In this respect, the careful selection of creditworthy coun- terparties is one of a number of critical factors which will determine the bank- ability of the project. Similarly, the adequacy of the fuel supply arrange- ments, preferably by way of a fixed price long-term supply agreement, is a key factor in determining bankability. In Abu Dhabi, the Abu Dhabi Water and Electricity Company (ADWEC) is responsible for the fuel supply as well as being the single off-taker of electric- ity produced by all the emirate’s IPPs. No government guarantee is issued in respect of ADWEC’s payment obliga- tions; however, the Abu Dhabi govern- ment guarantees termination payments under the PPA. Where the creditworthiness of an off-taker presents a concern, a higher level of government support is typi- cally required. Bankability: Tariffs and revenue generation The tariff that the power producer can charge for the power it generates is fundamental to the bankability and ulti- mate success of a project. When setting a tariff, consideration should be given to realistic and comprehensive calcula- tions of the costs of generating power and to the price which end-users are paying for the power. In Abu Dhabi, payments by ADWEC to power producers have followed a take-or-pay structure comprising a capacity payment and an output pay- ment. ADWEC also takes the fuel sup- ply risk by paying fuel suppliers di- rectly for the fuel consumed by the power producers. Making use of the multitude of financing sources Projects in the Middle East have been able to mobilise and leverage a wide range of financing resources. These have included export credit agencies, multilateral financing institutions, de- velopment finance institutions (DFIs) and political risk insurance providers. All these sources, and in particular DFIs, who can supply due diligence, influence with host governments, and/ or partial risk guarantees, which are likely to be essential in strengthening sovereign guarantees in countries with low credit ratings, will almost certainly be vital for the development of projects in Africa as well. Giulia De Michelis Katharine Sonneborn

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construction business news me February 2016 26 COVER STORY Along with regional distributor FAMCO, Volvo Construction Equip- ment plans to integrate a new breakthrough concept into the market and help its customers with the future of construction Building Tomorrow

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construction business news me February 2016 27 O ne of the oldest construction machinery companies in the world, Volvo Construction Equipment has evolved into one of the most inventive equipment manufactur- ers and suppliers since its humble beginnings in a ma- chine shop in Eskilstuna, Sweden, in 1832. Founded by then 27 year old Johan Theofron Munktell, who is also known to be the inventor of many types of early construction machinery, the concept of innovation is embed- ded in Volvo’s bloodstream. The company is now one of the most widely used construc- tion equipment firms in most parts of the world. Last year, Volvo CE set its sights on the future with the introduction of its Building Tomorrow campaign. Widely talked about in almost every press conference since, Volvo CE’s new campaign is an open-ended commit- ment to aid developments taking place in construction mar- kets worldwide. In a press conference in 2015, Volvo CE president Mar- tin Weissburg highlighted how customer requirements are changing: Intelligent systems now offer increased machine productivity and functionality, along with improved asset and site management. He talked about how innovations in the Internet of Things (IoT) have enabled the company to create smart, connected machines that capture and deliver information to customers. Therefore, Volvo CE plans to coordinate and expand its ap- proach to the integration of intelligent systems. Four key areas emerged as top priority and Volvo CE swore to carry them out with perfection: fuel efficiency, ma- Volvo CE EMEA and FAMCO organised a regional cus- tomer event at Hilton Ras Al Khaimah in UAE on 26 No- vember last year, to conduct a regional launch of its new line of products. Machinery launched included the new EC750D excavator, new G- series wheel loaders with Z-bar linkage, new H-series wheel loaders and the latest line of hydraulic breakers. The EC750D excavator is currently the biggest machine produced at Volvo CE and most products launched were optimised for fuel efficiency and safety. The event was comparable with its most celebrated machinery show Volvo Days that is held at its factory in Eskilstuna, Sweden. Drivers and instructors from the Eu- ropean Volvo CE team dressed in neon safety jackets be- fore they blazed through the desert giving interested buy- ers a glimpse of how the machinery would look in action. The three day event was organised for the regional Volvo CE team and its distributors, with the last day be- ing an opportunity for potential buyers to gain hands-on experience with the machinery. Bahrain-based Steven Edward Hanahoe, workshop manager of NASS Asphalt, was impressed by the show and machinery showcased. He said: “Some of the ma- chinery displayed at the show was very impressive.” Another customer, Fadi S. Nimri, service and opera- tions manager of UAE-based Transmak, said that he en- joyed the show with demonstrations providing an impor- tant criteria for purchasing. Frank O’Conner, managing director of FAMCO Opera- tions in the UAE, reported the event had a large turnout, with almost 200 people. He emphasised that Volvo CE seeks to cater to the needs of its customers and con- stantly innovate to bring what is needed in the market. Trying to cater to customers’ every need could be ex- hausting, but Frank stands by going “hand-in-hand” with them. He talked about how today the average customer is much more informed and educated about machinery, unlike five years ago where the initial cost was the only criteria. “Today, they evaluate the total cost of ownership on a spreadsheet.” The Building Tomorrow event successfully concluded with Volvo CE able to demonstrate its new products to customers while establishing lasting relationships with them. Volvo aims to listen to its customers as the future of construction begins to take shape and advises them how to navigate their way through technology and inno- vative products. Three days in the desert Frank O’Conner Building Tomorrow customer event in RAK

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construction business news me February 2016 28 Building Tomorrow takes the custom- er-comes-first policy to the next level, and customers could not have taken it in any better. Halwani reveals: “When we introduce new machines, especially in collaboration with Volvo CE, we usu- ally get a very positive response.” As a result, FAMCO never sells just a machine, but the “whole package”. Halwani explains that if there is an in- terested buyer, the discussion usually includes details such as aftermarket, availability, warrantee, packaging, ser- chine uptime, productivity and safety. This ambitious plan then trickled down to several regional markets world- wide including the Middle East. In the UAE, its regional distributor Al-Futtaim Auto and Machinery Co. LLC (FAMCO), embraced the concept with open arms and organised a three-day event for lo- cal and regional customers to share the news (read box on page 27). Understanding Building Tomorrow “Volvo CE is trying to build machines that will ‘build tomorrow’, by using the valuable input of its customers and end- users,” says Ahmad Halwani, regional general manager – construction and ag- ricultural equipment at FAMCO. “Basically, Building Tomorrow is a partnership. It’s a gesture to show our customers, we are here to support you.” The concept is simple, yet impact- ful. Construction machinery, vital to any construction project, needs to be up- to-date. Halwani says that Volvo CE is showcasing its adaptable machinery to help with building a better tomorrow. Impressed with the three-day event in Ras Al Khaimah, Halwani says such cus- tomer events aren’t uncommon. “Early last year, FAMCO organised three customer events (not entirely dedi- cated to Volvo CE), it was the launch of three main branches across three main cities. The turn up for those events was astounding, almost 1,500 attendees.” vice contract, and financial options. “We see that most customers have a tendency to lean towards those com- panies that provide support, not just a product. And if the machinery is per- forming well and under an acceptable cost, it is definitely a win-win situation.” The team aims to support customers while giving them technical peace of mind and guaranteed productivity, ac- cording to the regional GM. Even though Volvo CE may not have the lowest price tag, it isn’t the most COVER STORY Ahmad Halwani

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construction business news me February 2016 29 expensive either. With an aim to pro- mote cost-efficiency, the company has noticed customers coming back for the level of value it provides through prod- ucts and added services. “Customers want to see full involve- ment from the distributor, they not only want to purchase a machine but the whole support system.” New age, new customers The year started on a flat note with fall- ing oil prices, tightened government budgets and no project releases. Hal- wani says that despite the pressure, FAMCO looks forward to potentially launching some plans this year. As things shift around in the mar- ket futuristic construction sits right on the horizon, and customers find them- selves looking for increasingly more in- novative products. Halwani observes: “Competiveness in the market can be felt all the way from the top, from project owner, to the main contractor, and sub-con- FAMCO launched operations in Bahrain on 20 January 2016 at the Ritz Carlton Hotel in Manama. The event included top construc- tion professionals in Bahrain with FAMCO’s main brand Volvo CE headlining the event. Paul Floyd, senior managing director, said: “Bahrain is a key market known for quality con- struction and infrastructure proj- ects. Thanks to our new facility and highly qualified team, we very much look forward to playing a part in building the country through our contractor client base.” In Bahrain, FAMCO will dis- tribute top brands such as Volvo construction equipment, SDLG construction equipment, Merlo telescopic handlers, Hartl crush- ers and screeners, Dexion in- dustrial storage systems, Hart industrial doors, Steril warehouse docks, Nassau sectional doors and BP side loaders and forklifts. FAMCO extends its reach to Bahraini customers tractor to equipment supplier. Every- one can feel the pressure.” The market has been tough, with limited budgets and high expecta- tions. Customers, too, have never been as informed as they are now, and have never been as careful with their investments. As deep pockets run shallow, Hal- wani assures that at FAMCO, they are not traders but advisors to the custom- er. “We take into account the custom- ers’ projects, and try to make the cor- rect selection of the machine, or group of machines for the specific projects. Our advice is very crucial for the cus- tomers because if they select the right machine, they will be able to execute the job appropriately and on time.”

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construction business news me February 2016 30 Country report Stuart Matthews looks at the impact of Chinese influence on the regional construction industry and the businesses leading the way China Syndrome I t’s late January in Riyadh and a delegation from the People’s Re- public of China has been meet- ing with representatives of the six nations that make up the Gulf Cooperation Council (GCC). The meet- ing marks the end of an intense period of bilateral get-togethers that have gone on for several weeks and resulted in a flurry of announcements covering busi- ness, trade and cultural relations. This time was no different, with the big news from this meeting be- projects, where Chinese firms are be- coming an increasingly familiar sight. China is the UAE’s second biggest trade partner with business between the two countries worth some $50bn in 2014. The Emirates also plays host to more than 4,200 Chinese companies. It’s clear that this trade matters. Juma Mohammed Al Kait, assistance under- secretary for Foreign Trade Affairs at the UAE Ministry of Economy went on record in December suggesting that there was a need to boost it further. ing the finalisation of a draft China- GCC Free Trade Agreement. Accord- ing to a joint statement the two parties have committed themselves to finalis- ing a deal this year, as the GCC states look east to build new and significant economic partnerships. For its part, the UAE has been cul- tivating closer business relations with China and is obviously not the only country in the GCC to do so. Much of this is being built around primary trade and cooperation on large infrastructure Metal mine truck in Gansu province, China

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construction business news me February 2016 31 “With China there is a need to diver- sify our trade,” Al Kait said at the China Trade Week exhibition in Abu Dhabi. “We need to engage the private sector to explore new opportunities in many different sectors other than the classic,” he told reporters. As is so often the case the govern- ment is leading the way, with its most recent investment agreement revealed in December. The two countries have agreed a $10bn UAE-China joint strate- gic investment fund. Signed off during an official visit to China by His High- ness Sheikh Mohammed Bin Zayed Al Nahyan, the launch of the fund is set to take advantage of commercially-driven investment opportunities and build business between the two countries. Other recent and diverse deals have in- cluded new routes for UAE airlines, DP World investing in port facilities and a common currency fund developed as When the construction boom of the mid 2000s first kicked off equip- ment of all kinds was in high de- mand, supplies were tight and lead times were growing. They were mar- ket circumstances that helped to set the stage for a surge in the amount of Chinese construction equipment being seen on sites around the Gulf, as companies from Asia’s manufac- turing leader demonstrated their ca- pacity for volume. This was no accident. The coun- try had begun to pursue an outward looking economic strategy that tar- geted exports of the core goods companies had been making for their own domestic market, which was barrelling along at an unprece- dented growth rate. For high-profile construction equipment manufac- turer LiuGong the outward push had begun in 2003, as it sought to internationalise its business. Over a dozen years its business outside of China had risen to account for more than 35% of total revenue in 2015, with overseas employees making up 20% of staff, and overseas assets accounting for nearly 10% of the company’s total. With growth have come lessons about quality, after sales service and the all-important cost of ownership. “The overseas markets have played a significant role in the im- provement of product technolo- gies, product quality and LiuGong management systems,” said Zeng Guang’an, chair of LiuGong Group, last year. LiuGong has not been alone in its push to diversify its customer base. Other big-name machinery brands to enter the Middle East market over the last decade or so include Sany, Zoomlion and XGMA. All have had to adapt to the fact that selling the kit is not enough, there needs to be a support network in place ready to cope with anything right down to the site level. This has seen these and other Chinese manufacturers serv- ing the construction sector open distribution hubs, find local servicing partners and develop fully fledged dealer networks. “The Middle East market has prov- en to manufacturers time and time again that it is not enough to stop by with a good deal and then be on your way,” said international machinery market analyst, Rob Allen. “Custom- ers in the Middle East’s construction sector are traditionally conservative buyers, alert to a promising offer, but also looking for assurances of long- term performance and support. It’s no coincidence that the manufactur- ers who have had the most success in the region are also those who can demonstrate the greatest presence and strongest networks. That holds true no matter where they originate.” As these networks continue to de- velop and more Chinese companies look to find customers in the Middle East, the roads to new markets, quite literally built by the country’s machin- ery manufacturers, may prove the best paths to follow for those who would emulate their successes. Rise of the machine Machinery makers have been at the forefront of flying the flag for Chinese construction brands

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construction business news me February 2016 32 part of a plan to support the globalisa- tion of the Chinese renminbi. Most telling of all though, especially for the potential success of the local construction industry with its expertise in infrastructure development, is the founding, in January, of the Asia Infra- structure Investment Bank. Headquar- tered in Beijing, the bank is intended to be a multilateral institution tasked with providing financial support for in- frastructure development in Asia. The new bank has been pledged a store of cash to spend, with authorised capital of $100bn, $237m of which is coming from the UAE over the next five years. “The establishment of the Asian In- frastructure Investment Bank marks the start of a new era in international development aid. The bank is aligned with the UAE leadership’s vision to pro- mote international collaboration and ensure the efficient distribution and use of development aid,” said Mohammed Saif Al Suwaidi, director general of Abu Dhabi Fund for Development (ADFD) at the bank’s inauguration. “Keeping this as our core mandate, the UAE will continue to support AIIB’s efforts to accelerate infrastructure development across Asia, while pursuing efforts to support social and economic develop- ment across the developing world.” With a mandate to invest in sec- tors including energy, transportation, urban construction and logistics, as well as education and healthcare, the financial spur given to develop- ing infrastructure around the region could see companies with emerging market experience well placed to bid for large-scale projects that have se- cure channels of funding. Competition for the business could well be tough, not least because of the strength of China’s own contractors. The country has a large contractor base fuelled by domestic demand, but perhaps its best known brand export to the GCC is the massive China State Construction En- gineering Corporation (CSCEC). The huge company was recorded as China’s second-biggest contractor in 2015. With gross revenues of more than $110bn, according to data compiled by Construction Times, a Shanghai-based CSCEC has been active in the Middle East since building villas on Palm Jumeirah A clock factory in Shenzhen Country report

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construction business news me February 2016 33 Country Year Import AED Export AED Re-Export AED CHINA 2010 49,905,295,897 990,802,908 1,283,544,886 2011 54,960,024,524 1,042,259,079 1,449,903,233 2012 58,560,972,057 4,810,533,405 2,373,881,712 2013 64,158,703,851 3,174,159,255 3,314,889,536 2014 81,345,521,135 3,966,214,937 5,128,654,119 Grand Total 308,930,517,464 13,983,969,584 13,550,873,486 industry newspaper. The contractor has been active in the Middle East since it won a bid to build villas on Palm Jumei- rah back in 2003, although it wasn’t for- mally established in Dubai until 2005. The chief executive of CSCEC Middle East, Yu Tao, went on record last year saying the Middle East operation had an order backlog worth $1.36bn. It’s a backlog the company has al- ready added to in 2016. In January the building division of CSCEC Middle East was awarded the main contract for OIA Residency Union Properties. With a total contract value of $63.9m, the OIA Residence is set to be built in the central area of Dubai’s Motor City, adding 269 apartment units and asso- ciated facilities to the area. The six lev- el structure is CSCEC Middle East’s first project with Union Properties. Earlier in the month the company was award- ed the main contract package for Ha- meni Tower project. Being developed by Zaya Real Estate Development, the tower contract is worth some $94.7m and will see CSCEC Middle East build a 33-storey tower in Jumeirah Village Circle. With 467 apartments and four levels of parking, the proposed height of the building will be just a touch over 126 metres and will add another tower to the company’s regional cre- dentials, which include projects such as the Central Bank of Kuwait, Qatar’s Doha Tower and several major pieces of road infrastructure.

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construction business news me February 2016 34 But while CSCEC Middle East might be one of the highest-profile China- headquartered contractors in the region, it is certainly not the only one. Accord- ing to research from the US-based Heri- tage Foundation some $30bn worth of contracts were done by Chinese com- panies in the Gulf between 2003 and 2014. Among them would have been China Railway Construction Corpora- tion (CRCC), which made its name in the region building the Makkah Metro and announced the completion of the related $1.7bn Mashaer Railway project in Saudi Arabia late last year. Six years in the making, the project is a notable achievement that will relieve some of the intense pressure felt by the city’s transport infrastructure each year dur- ing the pilgrimage season. According to information from the company the project saw up to 10,000 people on the job in its last 16 months. Crucially the company also provided employment and training for Saudi na- tionals, in the process providing one of the more elusive results sought by any project carried out by an internation- al contractor in the GCC: knowledge transfer. The company has other work in progress in the Kingdom, including a deal with the Saudi Railways Organisa- tion for the second phase of a project to upgrade the track on the freight line linking Riyadh, Haradh and Dammam, worth a tidy $42.7m. Other specialists have had success too. China Petroleum Engineering and Construction Corporation, CPECC won an engineering, procurement and con- struction contract for the development of Abu Dhabi’s Mender Field last year. The $334m contract was one of a num- ber of energy related projects Chinese companies have an interest in around the Gulf. While hydrocarbon energy projects are not likely to be top of any- one’s list with oil prices sitting below the $30 a barrel mark, solar power and other energy options are also on the agenda for regional authorities. Despite this Chinese firms have had difficulty securing business in a sector which on the global stage they domi- nate. According to data from industry analysts IHS, seven out of the top 10 solar photovoltaic (PV) companies are Chinese firms, yet none have a strong foothold in the UAE, a solar market with advancing projects. In another part of the ‘clean energy’ sector, one company has just had some fresh suc- cess. China’s Harbin Electric Company has teamed up with Saudi Arabia’s ACWA Power to win the contract for DEWA’s Hassyan clean coal power plant. The first phase of the project will see the companies deliver two units of 600MW each and are set to be operational by March 2020. The power plant is being developed under an independent water and pow- er project model and signals what may lie ahead for other Chinese firms who want to get a major foothold in the re- gion’s big ticket projects. Public-private partnerships are on the agenda as gov- ernments look for alternative ways to Coal mining site in Pingshuo, China Worker assembling production at line conveyor in a Chinese factory Country report

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construction business news me February 2016 35 fund major developments: both Dubai and Kuwait introduced new legislation last year to encourage it. Companies that can structure a compelling finan- cial proposal may find themselves front of the queue for further infrastructure development. Those coming from a domestic market that is the world’s sec- ond biggest economy may have just the resources required to take advantage of the opportunities that could arise. Chinese businesses are having a tough time and the impact is being felt all around the world. Confidence in the country’s power to be Asia’s economic engine has taken few knocks and looks slow to recover. It began last year when the country’s giant manufactur- ing sector reported falling demand. The sector’s response was to immediately start buying less of everything. Job losses among China’s mass of fac- tory workers meant they were not busy making the world’s goods and saw de- mand for raw materials fall away. Com- modity producers and other providers of the raw materials that were the fuel to China’s manufacturing boom are suffering straightened times. The knock-on effect has been sig- nificant and most acutely felt by those into mining, metals and minerals. Once the financial markets caught sight of the numbers, the chill was quick to spread. Record falls in the Chinese stock market hit domestic retail inves- tors hard, but also spread around the world. Share markets enjoyed a fairly miserable September in 2015, but ral- lied slightly by October as the panic passed. But more subdued figures from China set the slide off again in January, as fears about slowing growth joined forces with the ever declining oil price to drag confidence lower. Hong Kong’s Hang Seng index peaked at the end of April last year and has been on a downward trajectory since. The outlook remains uncertain, but the importance of China as an eco- nomic partner of Gulf countries is not. A report from the Economist Intelli- gence Unit claimed that by 2020, the largest share of GCC exports will go to China. With those exports likely to be worth $160bn in the region, Gulf busi- nesses want to see a buoyant China as much as Australian miners do. The trade is reciprocal with China expected to provide around $135bn in goods to the Gulf at the same time. If these forecasts are to be proved correct China’s domestic market will need to be providing a stable platform for steady and perhaps predictable growth. Not that it is anywhere near shrinking. The country’s gross domestic product growth rate last year may have been a 25 year low, but it still hit 6.8%, outperforming most major economies and keeping the country firmly in place as the second biggest economy in the world, tucked in behind the US. Analysts are calling the process a rebalancing of the Chinese economy from manufactur- ing into a more diverse range of income sources, a process close to many Gulf countries’ hearts. The country’s manu- facturing sector might not be what it was, but it has long since built a platform for economic development. From tiger to bear China’s manufacturing malaise is being felt around the world Central Bank of Kuwait

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construction business news me February 2016 36 TAKE 10 Construction Business News ME picks out the top 10 global innovations in technology that could be part every construction project in the next decade of the future A great solution to over-glazing is turning the glass into something more efficient. Most projects in the GCC have incorporated way too much glass which has resulted in buildings heating up, energy bills hiking up and sustain- ability taking the backseat. The building integrated photovoltaic (BIPV) glazing technology, tries to incorporate eco-friendliness in a modern structure. BIPV helps buildings generate their own electricity by turning the entire envelope into a solar panel. The building owner is then able to save massively on reduced energy bills. The transparent, seemingly normal, photovoltaic glass is used as a structural building material on windows, façades and roofs. BIPV use in the construction of new buildings has been increasing over the last few years and the energy generated is used sometimes as a principal or an ancillary source of electrical power. The initial cost of integrated photovoltaics can be offset by reducing the amount spent on building materials and labour which would normally be used to construct the part of the building that the BIPV modules replace. The smart device has a screen size between that of a typical smartphone and a tablet. The phablet has been attracting consumers from across the globe, especially after Apple launched its iPhone 6 Plus. Construction professionals will be able to incorporate this device in their daily use for its size, and integration and collaboration potential. Combining the communication ability with the large screen size, professionals can view drawings and detailed reports, as they are updated by col- laborators around the world, in real time. Most tech-companies believe that using this de- vice in construction sites would be a common trend to emerge this year. Photovoltaic Glazing Phablets 1 2

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construction business news me February 2016 37 Augmented reality and wearables give users an opportunity to see a digital image beside or on top of the view of their existing surroundings. Using these technologies in construction gives the professional a chance to create a virtual design along with making the use of BIM much more accessible on-site. In addition, the use of GPS presents the user with the added benefit of syncing their location data to a BIM model. By doing this, the professionals can view the 3D virtual com- pleted construction site on a real-world view of the site. The wearables are also used in real estate, where potential homebuyers use the virtual reality headset to “walk through” the building. Google Glass, developed by Google X, has gained some recognition by businesses and consumers, but the project has since been discontinued. Wearables are still in the early stages of development and could take another decade to truly penetrate international construction markets. Near Field Communications (NFC) is a secure form of data exchange through short range wireless transfers of data from physical tags to NFC-enabled devices. The amount of data transferred is usually small and needs to be held as close as two inches. This kind of technology is popularly used in mobile payments where consumers tap to pay or pay from their phone. NFC got popular in 2014, where the technology was released in the iPhone 6 while also being present in many Android and Windows devices. In construction, using NFC could help track and iden- tify materials, saving time and money, and could also be applied to materials tracking, prefabrication, asset and workforce management. Another bonus is that with the technology incorporat- ed into most smartphones, additional scanning devices aren’t necessary. Modular construction has become increasing popular in global markets, predominantly for the cost and time savings that can be achieved. Adaptable for both temporary and permanent structures, the meth- od has long been used by the likes of McDonald’s and Pizza Hut due to the ability to quickly replicate existing models. The entire structure can be disman- tled, recycled and re-located easily and the method cuts down the cost and time needed to construct a project by half. 3 Virtual reality and wearables Modular construction4 Near Field Communications 5

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construction business news me February 2016 38 TAKE 10 3D printing is a computer-based software that sequentially layers materials to create three dimensional shapes. Commonly used for prototyping and manufacturing geometrically complex components. This may not be a new invention, as it was developed in the 1980s however, over the last decade, use has gradually increased. In construction, the technology has been used to create small complex components, and lately to print entire building structures. Benefits of 3D printing include faster and more accurate structures at lowered labour costs and while generat- ing less waste. Small and remotely operated multiple rotor aircraft, drones, have been introduced to the AEC industry with the potential of a positive future. Surveying has never been the same after the use of drones. The device is armed with high-resolution digital cameras and advanced software that can re- cord audio visuals at great lengths. Drones can easily survey a site and build maps without the need of human resources, heavy machin- ery or other tools. It can survey an entire project in half the time and cost. On a global scale, many construction compa- nies actually find drones to be a vital part of their management, as they can venture out where people and heavy machinery cannot. Even though the shift towards adopting drones has been slow, they are gaining popularity. Drone surveying 6 3D printing 7

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construction business news me February 2016 39 Currently under development, kinetic energy shows huge potential over the next de- cade. London-based Pavegen Systems provides a technology that enables flooring to har- ness the energy of footsteps which can be used indoors or outdoors in high traffic areas. The technology generates electricity from pedestrian footfall using an electromag- netic induction process and flywheel energy storage. It’s too early to tell if this could be picked up in global and regional markets, but public transport infrastructure such as metro stations, could ben- efit from the development. Cloud computing allows professionals to operate software with the support of In- ternet enabled devices including mobile phones, iPads and phablets. This kind of software enables profes- sionals to access designs from anywhere in the world; BIM on mobile devices; construction documents accessible on site. Project complications and status can be easily communicated. This system can facilitate communi- cation and distribution of information between related participants, such as con- struction companies, building owners and architectural companies in order to man- age projects effectively and efficiently. Kinetic footfall 10 Asset mapping combines a lot of data in one place and gives a construction professional one spot to view all the information. The technology focuses on operational equip- ment (HVAC, lighting, and security systems), collects data from serial numbers, engineering notes of when it was in- stalled and by whom, and combines the data in one place. The system can show professionals on a map where the equipment needs to be installed and, once the assets are connected to the real-time system using the internet of things, these can be monitored via the web, app, and other remote devices and systems. This kind of technology can also be used to build data- bases of asset performance, which can assist in proactive building maintenance, and reduce procurement and mini- mise insurance costs. Asset mapping Cloud computing 8 9

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Shivram Mukherjee analyses the growth of sustainable skyscrapers in the UAE SUSTAINABLE SKYSCRAPERS Sustainability I n the past decade, sustainable design and practice was not identified by the Dubai Govern- ment as a means for innovative and profitable outcomes. This was largely due to the fact that clients, consultants and contractors were experiencing a period of substantial growth and stability in the construc- tion industry. The mentality was simply to construct high rise buildings rapidly to meet the excessive demands of wealthy expatriates who were seek- ing instant profits and a life of luxury. Hence, sustainable practice was at best an afterthought, which was seen as an unnecessary expense for the client to invest in. However, the recent global crisis has put enormous strain on the city of Dubai, ultimately forced to seek alternative approaches to stay insu- lated during these tough times. A collaborative approach seek- ing innovation through sustainability has recently been understood and acknowledged to produce positive outcomes, not only for the client and project team, but also for the occu- pants of the building. This understand- ing has been presented within the Dubai Strategic Plan 2015 and also in the BREEAM Gulf environmental rating system for construction professionals to adhere to. In order to achieve this aim, five guiding principles have been identi- fied within the Dubai Strategic Plan 2015. The guiding principle which addresses sustainable development is infrastructure, land and envi- ronment. The aim of this guiding principle is ‘to ensure proper focus on sustainable development within the context of Dubai’s considerable economic growth.’ Implementing ‘green’ objectives in future high rise buildings within Dubai. To successfully implement green ob- jectives in high rise buildings ‘a strong understanding of existing conditions, environmental data, relationship to existing and future developments, and the policies in place that support site development’ must be achieved. It has been further detailed that this process stating ‘designers must understand and consider building orientation, oppor- tunities for daylighting, generation of wind power, solar absorption and a site’s geothermal properties. Recent developments While the Al Bahar towers in Abu Dhabi have received acclaim and ac- colades as pillars of sustainable design, the project’s lead designer says that they are merely one step towards truly sustainable construction. The 25-storey skyscrapers, which serve as the Abu construction business news me February 2016 40

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construction business news me February 2016 41 Dhabi Investment Council’s (ADIC) headquarters, have an external facade composed of 2,000 umbrella-like ele- ments. These follow the sun, closing to block out heat while allowing in light. An array of solar panels on the roof is also utilised to heat water. Upcoming trends in high rise High rise towers of the future must not merely be measured by total height, instead its efficiency and impact on the environment will indicate how successful the development has been. Research carried out to date, indicates how future high rise design trends will encompass the mixed-use prototype. This works in unison with Dubai’s urban planning scheme involving cre- ating ‘cities within a city’. Projects such as the Burj Dubai, the Nakheel Tower and the Dynamic Tower all attempt to exemplify sustain- able development and achieve varying levels of success. Hence, analytical criticisms of each of these develop- ments can be made to further under- stand the future high rise design trend Dubai should be inspiring to. By establishing these principles, members within the industry can contribute their knowledge and energy towards creating a prototype for greening tall buildings. This future high rise design trend will encompass a sustainable mixed-use approach, which responds to the growing 40 The Lighthouse Project The Lighthouse is an innovative green skyscraper to be constructed in Dubai. For energy generation, it will have three enormous 225 kilowatt wind turbines, each 29 metres in diametre, and 4,000 photovoltaic panels on the south fac- ing façade. To optimise performance and operational periods, the turbines have windward directional wind vanes or limited yaw. Designed by the Atkins group, the 400-metre office tower aspires to re- duce its total energy consumption by up to 65% and water consumption by up to 40%. To achieve this goal the building makes use of extensive passive solar architecture and many low water en- gineering solutions including recovery strategies for both energy and water. During the development of the design Atkins will map and manage the embod- ied energy content of the building and select materials from sustainable sourc- es, so that impact on global resources is controlled. Already, this is leading de- signers to consider a steel frame solu- tion for this structure. Additionally, features such as floor- plates interconnected by micro-atria and the inclusion of interconnecting vertical gardens are being actively considered to enhance the social aspects of this building. According to Atkins, this unique building, with a total construction area of 140,000 square metre, will become a working prototype for low carbon towers within the region and a model for more sustainable developments in the future. In setting a new benchmark for Dubai, the design aspires to be a LEED plati- num rated low-carbon commercial building which will aim to reduce its to- tal energy consumption by up to 50% and water consumption by up to 40% compared to the current Dubai standard design. Atkins was commissioned to carry out a separate sustainability de- sign study to identify innovative ways of achieving this goal. Design provisions include passive solar architecture, many low energy, low water engineering solutions, recovery strate- gies for both energy and water and in- tegrated renewables and photovoltaic panels within the façade. Al Bahar Towers, Abu Dhabi Abu Dhabi has been the centre of a large amount of newly constructed tall build- ings in the last decade, but as concerns have grown over environmental impact and sustainability, some design teams have moved toward implementing unique ways to building in the desert while re- ducing their carbon footprint. Al Bahar Towers took inspiration from a traditional Islamic motif to design an in- novative and visually interesting external automated shading system for the build- ing. The dynamic façade has been con- ceived as a contemporary interpretation of the traditional Islamic “mashrabiya”; a popular form of, often wooden, lat- tice screen found in vernacular Islamic architecture and used as a device for achieving privacy while reducing glare and solar gain. The project brief called for two 29-storey towers to create an out- standing landmark that would reflect the region’s architectural heritage together with the status of the client’s organisation while providing a contemporary, sustain- able building using modern technology. CASE STUDIES Shivram Mukherjee, is a senior con- sultant with First Climate (India) Pri- vate Limited and has been associated with Climate Change Sustainability Services since 2011. Shivram Mukherjee sustainable high-rise design trends – Dubai’s strategy demands of the economy through the implementation of intelligent ESD initiatives, resulting in a ‘green’ high rise tower solution. Further research could examine sus- tainable high rise design trends out- side of Dubai and determine whether Dubai can implement some of these sustainable practices, to further improve their sustainable high rise prototype. Through this Dubai can ad- dress the basic principles and concept of sustainability: balancing a growing economy, protection for the environ- ment, and social responsibility, which can together lead to an improved quality of life for future generations.

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construction business news me February 2016 44 COMMENT surrounded by large lakes, fountains and an array of mixed-use develop- ment. The area was named the Opera District and is positioned to become a cultural destination in downtown Dubai - complete with luxury hotels, residential apartments, a retail plaza, art galleries, waterfront promenades, recreational spaces and parks. During its pre-construction phase, GRAFF3D presented scale visualisa- tion of the district by using Autodesk 3ds Max Design software. The solu- tion helped produce model-based, high-resolution renderings and cine- matic-quality 3D project visualisations of the development. These visualisa- tions are now being used to promote and market the area to potential investors, businesses and residents. The industry has also seen the in- creased number of companies offer- ing comprehensive professional 3D visualisation and animation services. These companies, which are staffed with highly skilled, creative and proficient design professionals, offer services like 3D character animation, 2D/3D animation, 3D walk-through, architectural visualisation, 3D medi- cal animation, 3D virtual tour for interior and exterior design, 3D fly- through, rich multimedia visual and presentations supported by titles, music, voice-overs and other content. To sum up, the construction indus- try is now being urged by industry experts to take advantage of what 3D and visualisation can do for to- day’s wide gamut of mega and major projects—exceeding the expecta- tions of clients while also achieving cost-effectiveness and operational efficiency. Naji Atallah, head of AEC and Manu- facturing at Autodesk – Middle East and Turkey, focuses on defining the vision for Autodesk in the building and manufacturing industries, as well as cultivating and sustaining the firm's relationships with strategic industry leaders and associations. Atallah holds a Master’s Degree in Mechanical Engi- neering from the American University of Beirut, Lebanon. Visual benefits Naji Atallah examines 3D animation and visualisation, as it revolutionises today’s construction industry these new solutions can be seen in the construction of the Dubai Opera House, which is a 2,000-seat, multi- format venue for opera, theatre, concerts, art exhibitions, film screen- ings, sports events and seasonal pro- grammes. Strategically located near the Burj Khalifa, the Opera House is T he business environ- ment emanating from today’s various industry verticals continues to rapidly change—adopt- ing new advancements in technology and utilising these as new tools to help drive these industries to more growth and profit. The move toward the future allows these businesses to be more unique and innova- tive, especially if you are within the manufacturing and construction seg- ments. In fact, industry experts have urged that now is the perfect time to increase awareness on the significant benefits and advantages of utilising newer design technologies like 3D and visualisation—which ultimately result in improved operational effi- ciencies and maximum cost benefits. Timely as it seems, the rules of today’s global construction landscape translate to effectively marketing your project in a quick yet highly ef- fective manner. With the emergence of major and mega projects across the region, companies in the con- struction industry do not have time for traditional trial and error prac- tices as these would lead to costly delays—very expensive and time consuming delays for that matter. To avoid these situations, companies are now looking toward using 3D and visualisation solutions, which not only saves cost and time but also en- sures that project flaws are dealt with properly and remedied in advance with a sound and secure alternative. An example of the strategic use of • Improved understanding of the project • Utilisation of the final designs as an effective marketing tool to help attract potential investors, partners and stakeholders. • Reduction in cost and time ulti- mately resulting in improved pro- ductivity and enhanced efficiencies • Faster approval from governments that mandate BIM and design software use Benefits of using 3D and visualisation

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www.sulb.com

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construction business news me February 2016 46 Technology Technologically charged KEF Holding chair Faizal Kottikollon discusses how investing in technology ties in with the long term vision of a company and how futuristic construction techniques are beginning to penetrate the GCC market Does the rate at which technology is advancing ever overwhelm small businesses, which have a limited expense budget? How could they cope with the pressure to change? Technology is a long term invest- ment and no company operating in today’s world can keep away from it. Companies should have a long term vision of where they want to be as a business and how they see themselves growing, for which they need to know the pulse of the evolving technol- ogy in their sector. To keep ahead of the game every business, no matter how big and small needs to embrace technology. While the one-time cost of adopting a certain technology could be substantial, in the long run it will help bring overheads and costs down for the business. What are the key trends emerging in 2016? For us, 2016 will be a continuation of things we laid the foundation for in 2015. It will be about innovation and being a change agent for the construc- tion industry. The technology we are bringing to this market, by way of robotics and automation in construc- tion, will impact not only the human intervention but also cut down the cost and time taken for construction by nearly half. As Dubai gets ready for Expo 2020, we will see it adopting various advanced techniques, to help the Emirate meet its various infrastruc- ture requirements on time and show the world that they are on the cutting edge of these technologies. In your opinion, which one of the newly introduced technologies is something regional industries need to watch out for? Modular construction without a doubt. Customised for the region’s harsh

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construction business news me February 2016 47 research done on the offsite con- struction market, as it is new in this part of the world. However, there are absolutely no civil structures that this technology can’t deliver, which means that if the current value of construction projects in the Middle East stands at AED11.55tr, that is the potential market value for off-site construction. Are any of the barriers because of social or cultural reasons? If yes, could you tell us more about it? We have not faced any barriers because of social or cultural reasons. The UAE has always been extremely forward thinking and has a long tradition of innovating and exploring advanced technologies. Thus, the use of offsite construction is a natural transition in this region. Offsite con- struction is a newer way of building things and as happens with most things cutting edge, we have found some early adopters. This trend is sure to catch up in the future as other companies see the benefits of offsite construction and follow suit. physical site and into a controlled factory/industrial park environment. The use of this technology industri- alises the entire construction pro- cess, dramatically cutting down the number of workers and the amount of materials used in the building process. This allows for more control over the final product as well as major advantages in efficiency and speed of delivery, while keeping the final product at the highest qual- ity. Offsite construction processes are also much ‘greener’. They use less heavy machinery and energy, thereby minimising waste. Leftover materials are always recycled and used for future projects. Construc- tion time, costs and resources are also reduced by leveraging robotic systems, CAD and computer aided manufacturing, thus contributing to sustainable construction. What are some of the biggest barriers the regional construction industry faces especially when it comes to adopting new technology? To date, there has not been a lot of climate, these technologies provide GCC buildings with a guaranteed life of at least 100 years, along with shock resistant properties to better withstand seismic activities. With UAE developers shifting their focus towards affordable homes, this technology is an ideal solution for affordable homes and large-scale mass housing schemes, due to the fast, accurate, highly efficient and cost-effective process. There is a demand in the Arabian Gulf for schools and hospitals amid rising investments from the govern- ment and private sector. Offsite tech- nology allows for faster completion of projects, maintaining extremely high quality standards. KEF Holdings will begin to install modular struc- tures such as hospitals and schools across the UAE and Saudi Arabia from the second half of this year. What are the technological solutions provided by offsite construction? Offsite manufacturing is emerging as a benchmark for quality construc- tion, taking the building out of the Faizal Kottikollon Offsite construction

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construction business news me February 2016 48 Technology Crash course in machinery - 101 Operators of construction machinery are responsible to get the job done easily, efficiently and cost-effectively. For Volvo Construction Equipment’s excavators, wheel loaders and articulated haulers, Oryx Simulations provide advanced training simulators that help train new operators to use the machine in a matter of hours. Construction Business News ME investigates Oryx Simulation’s advanced train- ing simulators for Volvo Construction Equipment (CE) uses a combination of theoretical and regular training to help operators reach levels of expertise with- out stepping into the field. The simula- tor-based training, offered for Volvo CE’s machinery, familiarises new operators with the controls and functions of the relevant machine, with specific focus on operating methods and skills. Per Bergman, key account manager at Oryx Simulations, says that training student operators to use the equipment via simulators is more effective. “Training a student for one hour in the simulator is enough to familiarise him with the machine. He can operate a machine after just one hour. Bergman adds that around 10 hours training at the simulator, you could move the operator from a simulator to a construction site. “The operator can then operate the machine safely in 10 hours. “While 40 hours in a simulator, would give you a skilled operator.” By having well trained operators, the company can assure maximised machine performance and on-the-job productivity. The equipment offers step-by-step training with evaluation and follow up that looks realistic and authentic and could easily be compared to traditional training. The combination of realistic sounds and movements also helps train the student operator in those situations that need all senses. The experience is substantial, with training in high-risk scenarios without actually risking the safety of the student operator or damaging the machine. The whole process swears to be easy, efficient and cost effective. The cost for running the simulator is in fact just a fraction of the operating cost of using a real machine in training. The fuel efficient technology prides itself on leaving behind a comparatively small footprint. It features a multitude of exercises, handcrafted to focus on operator skill or ability. In fact, the training instructor can either use one of the predefined Volvo Training Packages or create tailor-made exercise packs for different student groups. As the training helps the new operator repeat his practice (and movement) over and over, a long-term muscle memory is created for the task. Eventually, the operator will be able to perform without a conscious effort, similar to driving car or cycling. Once he reaches this kind of confidence he is able to concen- trate on the bigger picture. By helping operators reach this level of confidence, their chances of performing well and understanding a site well, dramatically increases. However, this technology also needs competent instructors to help make the training effective and enjoyable. Most instructors enable operators to follow a defined exercise path. After attaining the required skill level, they could then continue training on new techniques. Bergman compares using the simula- tor with traditional training and admits it is much simpler for the instructor as well. “If you are training a student operator in an excavator, you will be standing next to them with an open door yelling press this or that. In this environment you can teach a student even if that student has no experience. You could also leave your student to practice with the assur- ance you have left them in no danger.” Volvo CE simulator

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construction business news me February 2016 50 Technology One strategy doesn’t fit all Ayman Jaber shares how different types of firms within the construction industry could use social media marketing to enhance brand awareness We have reached a point where we don’t have to explain the importance of using social media channels within communication strategies anymore. The medium has proven time and time again its power to connect with audi- ences on a personal level as well as contribute to the firm’s overall brand awareness. However, for firms operat- ing within the construction industry, social media is somewhat of a vague area. Many believe that the same digi- tal strategy would be successful across different firms, and hence tend to repli- cate what their competitors are doing. In order to utilise social media marketing, firms must understand the importance of a customised approach. They should begin by identifying their objectives, audience, channel mix, message, and budget. These factors will differ depending on the firm’s operations. The only shared objec- tive the different types of firms would have is to enhance brand awareness. In addition to that shared objective, property developers tend to promote their projects for sales; architects and designers aim to showcase their ex- pertise in order to generate leads; and suppliers push their quality products. Almost each of these subcategories within the industry is targeting a differ- ent audience for a different outcome, and hence the choice of channel and message will differ. Property developers For developers, the ultimate goal is to increase sales. In this case an outbound communication approach would work best, where the message will focus on pushy language prompt- ing potential buyers to explore the properties available. The audience in this case are prospective investors seeking a new home or a valuable investment. For buyers, Facebook is a great channel to communicate, as the developer would be placing the message within their social setting. The newsfeed is where many in this region spend most of their time interacting with friends and consuming content. The tools available would offer the advertiser the opportunity to target different segments with different per- sonalised messages that would speak to them directly. Additionally, apps such as walkthroughs can be embed-

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construction business news me February 2016 51 in these group discussions. That being said, the firms should still monitor their representatives’ communication to en- sure that it does not violate their own corporate brand guidelines. Suppliers For suppliers, the main objective is to be included on that coveted list of trusted firms compiled by the procure- ment department. While many in this region resort to cold communication (calls, emails, LinkedIn messages), the key lies in knowing the audience and reaching it. Information is everything; knowing who would be interested in a certain product and who would be able to make the decision about buying it. Luckily, we possess a tool packed with data about every firm operating within the construction industry including its employees. Suppliers can utilise Linke- dIn by browsing through the profiles to ensure that they are targeting the right firms as well as the right decision mak- ers. Once those have been identified, the supplier has the choice to contact them directly (cold), create ads that target them by industry, job title, and seniority, or use Lead Accelerator, a tool that allows them to identify pros- pects and form relationships. Regard- less of the contact method, the message should focus on the product within its context. Instead of just relying on the usual brochure, suppliers must present case studies highlighting the use of their products within real projects. This way, prospective buyers would have a better idea of the solution the product can result in, as well as see it in action. By utilising the channels capabilities, these case studies can be created as video content that can also include real customer testimonials. Regardless of the type of firm, social media marketing should focus on sto- rytelling. The breadth of tools offered allows advertisers to craft stories that present their products and services in a way that appeals to their target audi- ence and showcases them accurately. The key to utilising any social media channel is going in with a clear cus- tomised strategy and investing the right amount of time into it. focus is on drawing potential clients in rather than seeking them out. Within this approach the firm must display its portfolio of work by establishing a showcase page within its LinkedIn company profile as well as publish case-studies highlighting the cre- ative approach, thought process, and execution method for its top projects. Additionally, the channel is one of the best environments to practice thought leadership initiatives. With over 25,000 professional groups within the MENA region, design professionals can dis- cuss industry trends and best practices, as well as showcase their skills, knowl- edge, and level of expertise. By doing so, the professionals reflect positively on their firms, and hence should be encouraged to continue participating ded onto the pages allowing buyers to tour the property in advance. The focus in this case would be on visual content; images and videos, which can be adapted to be placed on Instagram using the appropriate hashtags to en- hance visibility. Architects and designers Unlike property developers, design firms aim to showcase their portfolios in order to generate more business. While maintaining a strong presence on Facebook is important to enhance Google Search Ranking. LinkedIn is the most valuable channel for those seeking to form relationships with potential clients. For these type of firms, the best communication ap- proach is an inbound one, where the Ayman Jaber is digital communica- tions strategist currently heading the marketing communications depart- ment at Lacasa Architects. An ex- perienced marketer, Ayman’s digital agency background includes working with several multinational brands. In addition to his work at Lacasa, he is also a published writer, conference speaker, and business awards’ judge. Ayman Jaber

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construction business news me February 2016 52 PROJECT REVIEW C rystal Lagoons, developer of the patented technology of giant crystalline lagoons, was awarded by Guiness World Record (GWR) once again for its Sharm El Sheikh manmade lagoon. The current record breaks the company’s own previous record since 2007 for its eight-hectare San Alfonso del Mar lagoon in Chile. In Egypt, the $5.5m lagoon is the centrepiece of the $500m CityStars Sharm El Sheikh tourism development undertaken by the Sharbatly family. Works on the lagoon completed last year, with the GWR announcement of- ficially made in December 2015, while the first hotel within the development is set to open in April 2016. Once completed, the 750-hectare community will feature 12 lagoons us- ing 100 hectares of salt water sourced from underground aquifers. Aimed to be a major leisure attraction, the development as a whole is set to have 30,000 planned residential units along with hotels, a golf course, marinas, museums, and a shopping mall. The company’s first project provided the experience to help navigate through this project. The first project built at San Alfonso del Mar in Chile became one of the most successful second-home resort in the southern hemisphere, surpassing the competition in terms of sales, offering units at higher prices and selling them at higher rates. Crystal Clear Sharm El Sheikh lagoon Carlos Salas, regional director of Middle East at Crystal Lagoons, talks about the company’s latest 12.5-hectare CityStars Sharm El Sheikh project in Egypt; winning the Guinness World Record for the largest manmade body of water in the world Carlos Salas “Due to this success, real estate firms from all over the world are interested in the idea of having our technology as part of their projects to increase de- mand, return rates, and build projects previously deemed unviable for real estate,” Salas observes. The lagoon was then certified the world’s largest lagoon by GWR in 2007, and since then it became the platform from which the company launched its global expansion. The Sharm El Sheikh project, on the other hand, marks Crystal Lagoon’s first mixed-use project where the technol- ogy will be used for recreational pur- poses as well as for water desalination. Salas explains: “With systems such as our telemetry-controlled pulses and energy-efficient ultra- sound filtration, our lagoons use up to 100 times fewer chemicals and only 2% of the energy required by traditional swimming pools.” All the lagoons’ hydraulic, bio- chemical and mechanical systems are controlled and operated remotely from Chile via internet platform. “This allows us to maintain the water within our pre-defined parametres, guarantee- ing standardised water quality in all our lagoons, regardless of their location.” He adds that Crystal Lagoons has developed a technology and concept patent-protected in 160 countries that makes possible the construction and maintenance of crystalline bodies of water limitless in size at very low costs. Pure and sustainable water use Salas states: “What is truly unique about this project is not only its desert

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construction business news me February 2016 53 San Alfonso del Mar lagoon setting but the fact that, through our technological innovation, we are able to take water that is not being used elsewhere, and make it a sustainable feature within a traditionally arid desert landscape, which adds tangible real estate value to the development.” Salas admits that the company’s green credentials sets it apart from anything else in the market. “Our patented technology ensures that our designs are exceptionally sustainable. Our lagoons use up to 100 times less chemicals than conventional swimming pools and consume up to 2% of the energy needed by standard filtration systems. In addition Crystal Lagoons uses up to ten times less water than irrigating an 18-hole golf course and it can operate in any type of water, whether salt, fresh or brackish.” The water used on Crystal Lagoons’ lagoons is of the highest purity, being suitable even for human consumption, according to the regional director. With sustainable and eco-friendly methods, the company creates large bodies of water for leisure purposes using fresh, sea, and brackish water, or using water from underground aquifers in the desert. Salas claims that Crystal Lagoon’s technology uses 2% of the energy re- quired by conventional water treatment technologies for swimming pools and drinking water. Apart from that, they use half the water required by a park and 30 times less water than a golf course. In the case of the Sharm El Sheikh lagoon, the salt water supply is sourced from unused wells in the desert. “The salt water used in the crystalline lagoon features higher levels of purity and will be used for reverse osmosis desalina- tion processes, lowering the cost of water treatment,” says Salas. Other projects Crystal Lagoons has a total of four active projects in Egypt, including the CityStars Sharm El Sheikh lagoon which is its regional flagship. Salas says that Egypt has a very ambitious tourism and hotel pipeline with a clear set of goals therefore mini- mising challenges significantly. “Our relationship with CityStars has ensured a smooth project timeline that has been without deviation.” Building on the success of its first Middle East project, the company is also developing a second lagoon for Sharm El Sheikh. The 2.7-hectare

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construction business news me February 2016 54 PROJECT REVIEW turquoise centerpiece, Radamis Lagoon, for a 2,500-room three-hotel mixed-use development. Earlier this year, Crystal Lagoons announced two new Egypt initiatives – Swanlake North Coast and Porto Lagoons, both of which are located on the country’s northern Mediter- ranean coast, close to Alexandria. The high-end $200m Swanlake North Coast project that targets second home investors, is under development by Hassan Allam properties. The project will feature three lagoons covering over 6.1 hectares in a landscaped com- munity including upscale residential villas, twin villas, chalets and a boutique hotel. The fourth project with Porto Group, will develop a 2.4-he- actare crystalline lagoon within the $345m mixed-use Porto Golf Marina. The 18-hole golf course is also being devel- oped, designed by award winning American golf course architect, Raymond Hearn. “Our technology, concept and innovation is the same in each one of the projects we have developed so far,” says Salas. In the Middle East and Northern Africa (MENA), Crystal Lagoons is consolidating its presence through partner- ship deals with some of the region’s main real estate developers. The company foresees a fast growth in the markets of those regions. Up until now, Crystal Lagoons has over 40 projects in different development stages in countries such as the UAE, Oman, Jordan, and Saudi Arabia. “The MENA region represents a great opportunity for Crystal Lagoons at a time when investment in tourism infra- structure continues to grow. Our portfolio of projects is help- ing raise awareness and interest for major hubs in the region and our significant Egypt presence reflects the value that delivering a lagoon project can bring to emblematic leisure destinations across the MENA region,” Salas reveals. Sharm El Sheikh lagoon Dead Sea lagoon, Jordan Lagoon in Meydan, UAE Did you know? The Sharm El Sheikh lagoon is 20 times the length of an Olympic swimming pool and took 21 days to fill with 2,226,000,000 litres of water.

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construction business news me February 2016 56 PROJECT REVIEW N estled at the Egyptian coastal edge, holiday re- sort destination Somabay has witnessed a massive growth in its projects over the course of a year. CEO of developer Abu Soma Development Company Ibrahim El Mis- siri says that Somabay is the ultimate exclusive Red Sea holiday destination solely positioned on a peninsula. Somabay’s residential developments has been designed to offer a holiday home among diverse properties includ- ing luxury hotels with exclusivity and controlled access. In total there have been six projects in the pipeline within real estate includ- ing; Golf Townhouses, Marina Resi- dences, Reef Villas, Bay Villas, Soma Breeze Hotel Residences and Wadi Jebal Lodges. “Reef Villas, Soma Breeze and Wadi Jebal are off plan projects which will be ready three years from now,” states Missiri. “We also have another real estate development till 2020 as the land is 10 million square metre.” According to him, some of the com- pany’s key target buyers for the prop- erties include Egyptians and foreigners nationals (especially German, British, Italian buyers) who want an “original” vacation spot. Real estate in Egypt Missiri reveals that 2016 seems to be a relatively positive year for the Egyptian economy as the currency stabilises and investment returns to the country. He observes that the fiscal and net export position will improve significant- ly on the back of fuel subsidy reform. “Subsidy cuts will likely be watered Coastal haven Wadi Jebal Lodges Construction Business News ME reviews the coveted Egyptian holiday resort and residences, Somabay, developed by Abu Soma Development Company, placed in the western shores of the Red Sea down if public unrest occurs on a sig- nificant scale, however the bulk of the reform will remain in place.” While comparing the real estate market in the UAE with that of Egypt, Missiri says that Egyptian ROI is stron- ger than UAE. Missiri clarifies that all investment opportunities in real estate markets around the world use “sentiment” as a key driver. “This is particularly true of the Dubai real estate market with views on whether prices are heading up or down are often driven by so called ‘market research’ and the me- dia reflection of such. These are often presented as fact without any effort to scrutinise the basis and reliability of the numbers.” He debates that latest reports on pricing trends, drawn up by consul- tancies use figures, more often than not, from single sources or in some even more concerning cases from listings on websites. Though Missiri admits that there have been challenges while working in Egypt. The biggest challenge, apart from high prices of land and construc- tion material, has been the unregulated or “unofficial”, which he claims ac- counts for around 70% of the market, compared to the official market that is a mere 30%. On the flipside, Missiri says that 2015 has been an incredible year for the master development as it counts down to the 25th anniversary. Last year also marked the first entry of Westin Hotels and Resorts in Egypt and North Africa with the opening of Westin Somabay Golf Resort and Spa in Somabay in November. In terms of 2016, Missiri says that he looks forward to many more new open- ings, product launches and accolades. Did you know? Somabay won the Cityscape Egypt 2015 award for Tourism, Culture and Leisure for the Somabay Centre Masterplan.

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COMMENT 3.7 times higher than insulated wall, but transmits on average nine times more energy that combines temperature trans- mission and sunlight, which is absorbed by internal surfaces (see table). The majority of architects are shocked when they read this fact and commonly assume glass would only transmit 3.7 times more energy, be- cause they haven’t accounted for the impact of light transmission through glass. The transmission is absorbed by the ground slab, where it is stored as heat and released over several hours, sometimes way past midnight. George Berbari is the founder and CEO of DC PRO Engineering, an electro mechanical consultancy firm specialised in District Energy Services and Green Buildings MEP design. Berbari holds a Bachelor of Me- chanical Engineering from American University of Beirut (AUB) and was the recipient of AUB distinguished alumni award for the mechanical engineering for the year 2007/2008. Glaze over George Berbari examines the dangers of glazing and warns architects to account for the consequences of overusing glass Heat transmission through walls and glass (Dubai) balance the use of glass intelligently and position it where it matters most. For example, in an apartment win- dows in the living room are essential but don’t need to be designed for all rooms. We need to incorporate other interior design elements such as cur- tain size and type before designing wide-angled windows. Today, the UAE has a glass to wall ratio often exceeding 60% in office buildings and 40% in residential build- ings while most international codes set a limit of 40% and 20% respectively. In addition most buildings facades are identical from all four sides irrespective of external view or impact on heat load, which facilitates the architect’s work in creating similar details for all facades. Glass facades cost around $400 per metre squared while walls with epoxy finish cost around $150 per metre squared, and walls with alu- minium cladding cost $200. Double glazing has a U-factor (the overall coefficient of heat transfer) of T he use of glass dates back thousands of years, with its popularity root- ed in versatility and the ability to provide shelter while allowing sunlight in. Since the flat glass process revo- lutionised glass manufacture more than 60 years ago, the material has become increasingly common, but today, there is an unprecedented ob- session with glazing that allows max- imum vision and sunlight in modern architecture. But while vision and sunlight is perceived by human be- ings as positive, the impact on the building tells a different tale. When I reminisce about the Leba- nese Civil War, I reprimand glazing to be the weakest point in the build- ing structure. Not just in Lebanon but anywhere in the world, too much glass could be dangerous. From weakness in the overall structure, to the risk posed by fire and explosion, it is important to U Valve Glass Shadding Coefficient Design Heat Transmission - Watt per m2 Exposure Watt/m2. °k BTU/ft2. °f North East South West Average Watt/m2 BTU/HR/ft2 Wall (Dubai Green Bld'g Code) 0.57 0.10 Medium Colour 8.8 12.0 12.8 9.4 10.8 Glass (GTW Ratio > 40%) 2.10 0.37 0.40 Solar Conductance 28 72 105 82 72 Solar Transmission 27 23 20 29 25 Total Glass 55 95 125 111 97 Glass/Wall Heat Transmission Ration U=0.1 BTU/ft2 °f 6.3 7.9 9.8 11.8 9.0 construction business news me February 2016 58

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construction business news me February 2016 62 Machinery C hina’s front runner in commercial vehicles, Fo- ton International, along with exclusive Qatari distributor, Khalid Bin Nasser (KBN) for Trucks and Buses, launched the Foton Auman GTL Tractor Head in Doha on 25 January 2016. In a ceremony at the Ritz-Carlton Doha, Foton Interna- tional and KBN were joined by Sheikh Khalid Bin Nassar Al Thani, chair of KBN, and Lu Zhenghua, VP of Foton Inter- national, among other representatives of local construction companies, car rental companies, and logistics companies. Spotlight on Doha Al Thani highlights that as Qatar prepares for the FIFA World Cup in 2022 and the country’s Vision 2030, it has placed itself as a vibrant economic centre in the GCC with several infrastructure projects and initiatives. In fact, on 26 January The Peninsula reported that central parts of Doha had been reserved for a massive development as part of plans to host the World Cup. Al Thani admits that the region has been facing macro- economic challenges because of the lower oil and gas prices that is expected to sustain for the next few years. As a result, the Qatari government plans to prioritise major projects, reviewing costs as well as proposing al- ternative contracting and financing methods, according to Doha News. Local daily Gulf News reported that though Qatar’s New Year budget is conservative on revenues, Qatar is committed to completing several projects ahead of the FIFA World Cup in 2022. This bears good news for the Foton Auman GTL Tractor Head Sheikh Khalid Bin Nassar Al Thani nation’s construction industry. Doha, however, still remains one of the most expensive cities for construction according the Arcadis authored Inter- national Construction Cost report. Making good value investments Al Thani suggests that while the development plans will be executed in Qatar, this will occur perhaps at lower than planned volume and value. “This means that many here in the audience today will need to revise how you plan, secure and execute construction and/or other proj- ects. You will need to adjust your margins and cash flows to a new reality. “Foton provides excellent performance for value. Our products are up to 50 – 60% cheaper than high-end brands in the market.” According to the chair, the brand represented high qual- ity and low cost value. A good example of that would be the recent launch, Foton Auman GTL, which might be af- fordable but still entails the Cummins engine. The Beijing-headquartered brand has chosen the KBN for its “vision and capability”. Zhenghua says that the company is one of Foton’s most important partners in the GCC, adding: “Our group would bring products to Qatar and provide a broad range of support to KBN, to ensure that the after-sales service and spare parts deliv- ery capability of its partners.” KBN will also be investing in its delivery capability with a Foton showroom on Salwa Road in Doha, and a dedicated service centre in the industrial area. Sheikh Khalid Bin Nassar Al Thani, chair of Khalid Bin Nasser, talks to Construc- tion Business News about the new Foton Auman GTL Tractor Head Keep on trucking

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Construction Business News ME is now online. Visit now for all the latest news in the construction industry. cbnme.com

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construction business news me February 2016 64 BIG 5 KSA 7 – 10 March 2016 Jeddah Centre for Forums & Events, KSA The show gives exhibitors, visitors and buyers the oppor- tunity to gain a share of the Kingdom's lucrative $732bn construction industry. Over 500 exhibitors will showcase the latest construction products, technologies and services. It will be the first independently audited construction show featur- ing a wide range of construction equipment, materials and design. The event will also include seminars, conferences and workshops, along with recently included educational events. Cityscape Abu Dhabi 12 – 14 April 2016 Abu Dhabi National Exhibition Centre, UAE This April Cityscape Abu Dhabi will exhibit products and services from various sectors including banking, retail, hotel, leisure, infrastructure and design. The national exhibition will unite real estate professionals from across the region to meet local government authorities, developers, consultants, architects, designers and investors. Smart Skyscrapers Summit 16 – 17 May 2016 Sofitel Dubai the Palm Resort and Spa, UAE The event will attract over 300 senior architects, engineers, policymakers, developers, contractors and building manag- ers from across the MENA region. Smart Skyscrapers Summit offers a platform for networking and exchanging information required for building and maintaining world-class skyscrapers in the Middle East. The event will include presentations and case studies from local and international experts. It will also showcase some of the most innovative building technologies, design principles and solutions from across the globe. Middle East Rail 8 – 9 March 2016 Dubai International Convention and Exhibition Centre, UAE Middle East Rail is the only regional rail conference and exhibition run in partnership with the UAE government. The Construction Business News ME picks the latest and most sought-after exhibitions, conferences and seminars coming up in the construction industry Diary Dates Dubai World Trade Centre SAVE THE DATE conference focuses on railway development strategy and technology for government officials, rail operators and con- tractors. Over 7,000 transport, construction and logistics pro- fessionals will be brought together to help develop solutions in the infrastructure. The exhibition will provide presentations of how to build, operate and maintain railways and tunnels as well as strategies for rail revenue management. FM Expo 23 – 25 May 2016 Dubai World Trade Centre, UAE With over 7500 visitors last year, the exhibition will show- case latest products and services to facility managers, civil engineers, maintenance managers and operation managers. It will unite experts to discuss trends, challenges and best practice across the market. The FM Expo will be co-located with Middle East Waste and Recycling, Commercial Cleaning and Hygiene, and Elevators and Access Control. Middle East Stone 23 – 26 May 2016 Dubai World Trade Centre, UAE The Middle East Stone is exclusively dedicated to the stone, marble and ceramics industry. It will showcase latest tech- nologies from over 150 exhibitors. Visitors will have a chance to witness live demonstrations and see the latest technologies from machinery to complex processing equipment. It is the platform to meet with the top global suppliers of construction and decorative products and equipment.

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construction business news me February 2016 66 T his year begins on a bad note, with the GCC con- struction market being a lot quieter and flatter than 2015, but there is still some good news. Unlike the major slowdown in 2008, this time the markets are more mature and better prepared for the rough patch. The slowdown begun in 2014 with the strong and negative impact of declining oil prices. In the UAE, Alan Robertson, CEO of JLL MENA, says that 2016 is expected to see more challenging conditions as we begin to feel the impact of the continuing fall in oil prices and ongoing geopolitical tensions leading to reduced liquidity, and pressure on government budgets. Buildings global business leader at Arcadis Middle East Ian Williamson adds that when it comes to oil, the growing uncertainty over prices will inevitably have a short to medium- term impact on the GCC construction industry. Though he admits that the region’s major commercial centres, Dubai and Doha, have remained stable – “at least for the time being”. In fact, Dubai and Doha have been ranked as some of the least expen- sive cities in the world when it comes to building cost according to Arcadis’ recent report, International Construc- tion Cost Index. Regionally, however, both cities are in the top three of ex- pensive cities for construction, Doha ranking top, followed by Jeddah and Dubai, respectively. Williamson explains that 2016 could be a challenging year for construction, as the steep fall in the price of oil has made investment programmes across the region quite uncertain. Robertson reasons that whilst this overall scenario will naturally impact the UAE and wider GCC region, the EDITOR'S PICK Oil the wheels Experts from the region forecast what’s in store for this year and how the GCC construction market could progress despite the falling oil prices on roads, railways, stadiums and ports, as well as hospitality and so- cial infrastructure. In Dubai there are numerous mega projects in the pipeline that don’t ex- hibit any signs of slowing down. Some of those projects include the $1.4bn Atlantis hotel expansion, the Burj 2020 development, and the Route 2020 metro link for the Expo site. According to business intelligence firm MEED, the GCC construction sec- tor remains to be a “bright spot” with $2.65bn worth projects in the pipeline. Head of research at JLL MENA Craig Plumb says that stakeholders involved need to consider a range of new strategies to realign themselves and accept new realities. “Despite softening demand across many sec- tors of UAE real estate there remain significant opportunities for those willing to embrace the new trends offered by an increasingly mature and sophisticated market.” The analyst stresses it is important to recognise that while the pace of eco- nomic growth in 2016 is expected to be below than that seen in 2013 and 2014, it remains in line with that seen in 2015. In short, “the market may be slowing but it is still growing.” UAE real estate market is now better equipped to deal with such challenges than it has ever been. He explains that with subsidy cuts, reduced spending and the potential introduction of a Goods and Services Tax (GST), the government is already realigning its strategy to further reduce its reliance on oil revenues. “2016 is likely to be a more chal- lenging year for the UAE real estate market than 2015, but it must be rec- ognised that the overall economy is still expected to grow at around 2.7%, so there remain opportunities as well as challenges.” Williamson maintains that this could be a good time for the government, funders, and developers to capitalise on their investment ambitions. “As de- clining commodity prices, low labour rates and highly competitive construc- tion market have given rise to more potential opportunities across newly- affordable markets.” Unlimited progress In addition to the projects planned to prepare for Expo 2020 and the FIFA World Cup 2022, according to Arcadis’ report, over the next ten years Doha is set to spend $150bn

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UAE