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THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS JANUARY 2018

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Nasma, Sharjah’s newest residential community Your forever home for AED 995,000. 10% upon booking, and 20% during construction! The remaining 70% at handover! Located in the heart of new Sharjah, on the intersection of Emirates Road and Maliha Road, comes a vibrant new community. With Tilal Mall and the new Sharjah Convention Centre at its doorstep, Nasma has a lot to offer: • 2, 3 and 4 bedroom freehold townhouses and villas. • 13-acre community park. • A school, nursery, medical clinic, shopping centre and a club house. • 10 minutes away from Sharjah Airport, University City and Sharjah International Airport Free Zone. • No service or maintenance charges. Now is the time to become a home-owner and live the life you always dreamed of. Your forever home. 800-ARADA (27232) www.arada.com

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construction business news me // January 2018 // www.cbnme.com 3 Ed Note News Comment Aurora’s Cian Farah talks about the benefits of an end-user driven market Comment RICS' Rob Jackson discusses the importance of bringing consistency to regional construction Cover Story Regional industry experts discuss the trends that will dominate the UAE market in 2018 8 12 24 26 28 // contents January 2018 // Issue #35 Keep up to date with all the latest news, features and much more on our website. www.cbnme.com On the web

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www.cbnme.com

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// construction business news me // January 2018 6 S U B S C R I B E subscriptions@bncpublishing.net CEO Wissam Younane wissam@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Diarmuid O'Malley dom@bncpublishing.net Group Sales Director Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 Sales Manager Lionel Matthews lionel@bncpublishing.net Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 Editor Paromita Dey paromita@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Marketing Executive Mark Anthony Monzon mark@bncpublishing.net Photography Hayder Al-Zuhairi PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Construction Business News ME contact sales@bncpublishing.net T +971 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 UPP Interview ASU MD asserts a positive outlook for the MEP contractor in 2018, owing to its enviable project pipeline Feature Experts discuss and highlight the importance of fire safety regulations in the UAE in the aftermath of recent incidents Event preview A quick look at the upcoming Intersec 2018 Supplier News Editor’s Pick Diary 32 36 40 62 64 66

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Leaders in Project Management Inspiring Innovative Leadership www.hillintl.com

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// construction business news me // January 2018 8 // Editor's note New year resolutions Let me begin by wishing you a very Happy New Year. As the curtains came down on 2017, we all have been waiting to go into 2018 with bated breath. Not particularly challenging, but the year had its own set of ups and downs. But amidst this uncertainty, the GCC saw some big project launches, and the delivery and handover of some high- profile developments. The GCC's construction market has shown a 30% pick-up this year, with $130bn worth of completed projects recorded so far, according to new research. The new study by MENA Research Partners (MRP) said that completed projects increased from $100bn in 2016, despite headwinds that extended from oil price slump to budget adjustments in many GCC countries. The figures remain at par with an annual average of $135bn during the 2009-2014 period. With total GCC active projects at around $2.6tn – equivalent to 160% of GDP - the regional construction market presents "sufficient depth and opportunities for investors and regional market partici- pants over the years to come". The research also showed that the UAE and Saudi Arabia account jointly for 70% of the value of active projects. As oil prices ap- pear likely to continue to improve, and with government spending expected to pick up again, the stage is set for the infrastructure sector’s recovery. And with mega-events on the horizon, such as Expo 2020 in Dubai and the 2022 FIFA World Cup in Qatar, there is ample reason for members of the construction industry – and others – to feel optimistic. Of course, nothing is set in stone but, in years to come, we may well look back on 2017 as the year in which the saplings of recovery began to sprout in the GCC’s construction industry. editor’s note Paromita Dey Editor paromita@bncpublishing.net @paromitadey1 linkedin.com/in/paromita-dey

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800 999 999 I sobha.com @sobhadubai LIVE IN THE LARGEST TOWNHOUSES IN DUBAI

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// construction business news me // January 2018 12 For News, features and more, Visit www.CBNme.com Follow us on twitter for breaking news: @cbn_ME Follow us on Facebook for up-to-the-minute breaking news An update from around the region Real Estate Update Saudi Arabia-based developer, Dar Al Arkan, unveiled its plans to expand to global markets, with an AED800mn develop- ment on the Dubai Water Canal in the Business Bay area. The company has part- nered with luxury brand, Roberto Cavalli, to design the interiors of the 34-sto- rey waterfront skyscraper in true Italian fashion. Named as I Love Florence, the new luxury tower will offer its residents an immersive living experience that combines the sophistication of fascinat- ing Florence with the famed luxury of dazzling Dubai. Yousef Bin Abdullah Al Shelash, chairman at Dar Al Arkan, commented: “Dar Al Arkan, since its establish- ment in 1994, has been of- fering Saudi investors unique investment opportunities that enhance and protect their wealth and preserve it for the next generation. Our solid track record in deliver- ing 15,000 residential units and 500,000sqm of commer- cial space in Saudi Arabia for over 23 years will support our global expansion, which aims at presenting further di- versification to our existing investors, as well as attract- ing international investors to our investment portfolio.” Towering over the 3.2km man-made waterway, the high-rise will combine views of the canal’s vibrant outdoor and night scenes, with the elegance of the Florence’s Arno riverside, reflected in the interiors sketched by one of Italy’s most famed design houses. This is the first time ever that the Roberto Cavalli fash- ion brand lends its name to a real estate development, anywhere in the world, to present rich interiors that project bespoke living and are an embodiment of all the strength and glamour of the maison “Roberto Cavalli” lifestyle, delivering energy, prestige, emotion, success, and desire to experience. Gian Giacomo Ferraris commented: “We are ex- cited to be entering for the first time as a group to the real estate sector with the Roberto Cavalli brand, and we believe that the devel- oper couldn’t have chosen a more suitable location for this project in the Middle East, where Roberto Cavalli enjoys a strong following. Dubai has carved its posi- tion as the house of fashion and design in the region. I see a strong correlation be- tween Florence and Dubai, with both cities projecting elegance, art and design in everything they do, each in its own way. The new tower will embody Roberto Caval- li’s passion for beauty, de- sign, and his celebration of Italian craftsmanship. It will encapsulate the high-end luxury our fashion house has been famed for.” The tower, which will have views of the Dubai Canal, will feature for the first time in Dubai New York style homes, with elevators open- ing directly into the apart- ments, providing utmost pri- vacy. Units will be available in one-, two-, three-, and four-bedroom penthouses. Abdullah El Shelash con- cluded: “When we set out to draw our vision to become leaders in the global real es- tate development, we decid- ed to only settle for the best, hence our choice of Dubai Canal as a location, and the epitome of Italian luxury, Roberto Cavalli, to concep- tualise and create truly out- standing living spaces, not only in the residential units, but across the tower’s ame- nities, including the lobbies, gym, swimming pool, yoga area, outdoor training area, and hallways.” The tower architecture has been designed by VX Ex- perts. Dar Al Arkan has also appointed La Casa Engineer- ing Consultants. Construction will start in January 2018. Dar Al Arkan unveils AED800mn Dubai Canal tower

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construction business news me // January 2018 // www.cbnme.com 13 Legal International law firm, Pin- sent Masons, has entered an association with Saudi Arabi- an law firm, Alsabhan & Ala- jaji (SJ), to enhance its cover- age across the Middle East. The association with SJ will complement Pinsent Masons’ existing regional presence, providing clients of both firms in Saudi Arabia with specialist on-the-ground ex- pertise. This comes at an important time for the King- dom as it embarks on trans- formational economic and infrastructure changes. Pinsent Masons and SJ have been working closely together for a number of years on Saudi, regional MENA, and international matters, most evident in the infrastructure, energy, and technology sectors. This as- Pinsent Masons enter association with Saudi firm sociation will be a natural extension to the close rela- tionship that the firms have enjoyed for some time. Sachin Kerur, head of Pin- sent Masons in the Middle East, said: “Saudi Arabia is the largest construction, en- ergy, and related technology market in the GCC. When you consider Vision 2030 and other projects and initia- tives that are being planned or implemented in the King- dom, it will be very apparent why this association is a key strategic development for us. We have worked closely with Naif and Ibrahim over a number of years and they understand and share our commitment to client deliv- ery and sector focus.” Ibrahim Alajaji of Alsab- han & Alajaji law firm com- mented: “Our close relation- ship with Pinsent Masons enables us to strengthen our response in the infrastruc- ture, energy, real estate, and technology sectors. What really excites me is that we can offer businesses con- nected to Saudi with deep industry sector knowledge and experience that operates out of so many global loca- tions as well as Saudi Arabia itself. We have been really impressed with Pinsent Ma- sons’ commitment to the Middle East and its global reputation as an innovator in legal services.” Naif Alsabhan, Alsabhan & Alajaji law firm, added: “This association comes at a time where Saudi is executing its transformation plan under the 2030 vision. By merging our local knowledge and the longstanding interna- tional experience of Pinsent Masons, this association will enable us to provide high- quality services to interna- tional and national clients.” Richard Foley, senior part- ner at Pinsent Masons, said: “Our vision is to be recog- nised as an international market leader in the global sectors in which we operate. We have a long heritage in the Middle East having oper- ated there for decades and established an office in the UAE in 2004. Formalising our relationship with SJ is the next step in our devel- opment in the region as it will enhance our offering to clients who operate in Saudi Arabia at such a dynamic time for the country.” Sachin Kerur, head of Pinsent Masons ME

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// NEWS // construction business news me // January 2018 14 Construction Dubai-based real estate de- veloper, Gemini Developers, broke ground and began con- struction of its 29-storey Sym- phony tower in Business Bay. The tower is the second in the series of high-end luxury residential projects planned by the developer, after 90% completion of their Splendor at MBR City project in Sobha Hartland community. Symphony project has a built-up area of 33,628sqm; the apartment units range from 40sqm to 269sqm. The G+29 tower will house 455 residential apartments that include studio, one, two, and three-bedroom flats. The residential project will be equipped with ameni- ties like smart home tech- nologies, gym, yoga lawn, Gemini begins construction of luxury Dubai tower swimming pool, rooftop BBQ, jogging track, kid’s play area, retail stores, green open spaces, and concierge services for the residents. The ground-breaking cer- emony marks the begin- ning of the construction of the project that is slated for completion in May 2020 – five months before the Expo 2020 begins on October 20. Sudhakar R Rao, managing director of Gemini Property Developers, said: “Dubai’s upward market trend has given us enough reason to launch new projects. Due to the growth of the non-oil economy, Expo 2020, and other mega developments, we foresee the market to re- main on this upward trajec- tory of sustained growth. “The UAE has emerged as one of the most vibrant, Utilities An ACWA Power-led consor- tium with Veolia and DIDIC has been awarded the Sa- lalah Independent Water Project by the Oman Pow- er and Water Procurement Company (OPWP). The plant will be located in Salalah, Dhofar region and will have a capacity to gener- ate 25 million gallons per day of desalinated water using re- verse osmosis technology. The project is being pro- cured by OPWP under a build-own-operate frame- work on the back of a 20-year water purchase agreement (WPA). Dhofar Desalination Company, the project compa- ny, will be owned by ACWA Power, Veolia Middle East, ACWA Power-led consortium bags Salalah IWP project per day of desalinated water. ACWA Power is committed to ensuring the success of this project while creating real value for the local communi- ties. As such, the project will play a key role in meeting the increasing demand for water in Oman, which is expected to be on an average, about 6% per annum over the next seven years.” the plant will be undertaken by a consortium of Veolia Middle East, NOMAC Oman, and Dhofar International Development (DIDIC). Thamer Al Sharhan, manag- ing director at ACWA Power, said: “Oman is a strategic country for ACWA Power – our portfolio of six plants can generate over 4,300 MW of power and 42 million gallons and Dhofar International Development & Investment Holding Co (DIDIC). Paddy Padmanathan, presi- dent and CEO of ACWA Pow- er, said: “Water is the most vi- tal commodity for human life as well as a necessity for all enterprises. We are delighted to have been awarded this project and the opportunity to continue supporting Oman as a reliable supplier of desali- nated water and power.” The engineering, procure- ment, and construction (EPC) of the plant will be handled by a consortium of Fisia Italimpianti SpA and Abeinsa Infraestructuras Me- dioambiente S.A. The op- erations and maintenance of cosmopolitan and progres- sive countries in the Middle East and there is very strong demand for value-for-money housing in many parts of the country. We are confident that due to UAE’s preference for high-quality living, our proj- ects will be well received.” He continued: “This mile- stone project marks an im- portant phase of our journey into the real estate industry and reinforces our position in the Dubai’s real estate mar- ket, which gave us a leverage to launch more such projects that are in-demand for both investors and end-users.” The developer has awarded the enabling works contract to National Piling and will be announcing the contract with the main contractor soon.

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construction business news me // January 2018 // www.cbnme.com 15 Government Dubai Land Department, Q4 Consultants sign partnership agreement Dubai Land Department (DLD) has signed a strate- gic partnership agreement with Q4 Consultants for the Indian company to act as a ‘Real Estate Promotion Trustee’, supporting DLD in its mission to consoli- date Dubai’s position as the world’s premier real estate destination for innovation, confidence, and happiness. The agreement was signed by HE Sultan Butti bin Mejren, director gen- eral of DLD, and Deepak Batra on behalf of Q4 Con- sultants. The company will also promote attractive in- vestment opportunities that can be enjoyed by Indian investors in Dubai’s real es- tate market. Mejren commented: “We place a high priority on the Indian market, especially as the Indian investors occupy a leading position among the top three nationalities in- vesting in Dubai each year. India has huge numbers of investors looking for interna- tional investment opportuni- ties, and Dubai is certainly able to answer this demand with its diverse investment options and attractive real estate environment.” Her Excellency Majida Ali Rashid, assistant direc- tor general and head of the Real Estate Investment Management and Promo- tion Centre, the investment arm of DLD, said: “This agreement demonstrates our keenness to strength- en cooperation between a select group of real estate promotion professionals in a number of countries in order to attract local and foreign investors to Dubai. We are confident that our agreement with Q4 Consul- tants will help us achieve these goals.” Deepak Batra from Q4 Consultants added: “We thank DLD for placing its trust in us as its Real Estate Promotion Trustee in India. We will promote Dubai’s real estate investment op- portunities while also help- ing Indian investors to learn about the relevant laws and regulations, and assisting them by using the language they prefer to communicate in. As a result, they will be- come familiar with Dubai’s investment climate, how it works, and the attractive opportunities it offers. We look forward to creating a platform where Indian real estate investors feel wel- come, safe, and protected.” Indian nationals are among the highest investors in Dubai’s real estate market. Figures issued from DLD’s Real Estate Studies and Re- search Department show that the total value of Indian transactions from the begin- ning of January 2017 to the end of November this year reached AED20.94bn, from 7,810 investments carried out by 6,150 investors, while the value of Indian investments reached AED14.18bn. A total of 1,295 Indian brokers are employed in Dubai’s real estate market, and over the same report period, they earned commissions of AE- D226mn for 2% of the sales they made. The new agreement will enhance real estate promo- tion in India and encourage greater investment from In- dian investors. Q4 Consul- tants will provide real es- tate promotion services in India, including customer inquiry services, to attract investment and introduce investors to DLD’s services. The company will also sup- port DLD by participating in real estate promotion exhibitions and workshops organised by the depart- ment and its partners in dif- ferent areas of India.

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// NEWS // construction business news me // January 2018 16 Abu Dhabi-listed developer, Aldar Prop- erties, announced that due to strong demand it will release more apartments for sale in Water’s Edge, the waterfront development on Yas Island. According to a company statement, de- mand has soared for the waterfront homes, with the units launched to date already sold out. The new release will comprise studios to three-bedroom apartments, with prices starting from AED500,000 and Es- crow accounts with Union National Bank utilised for all purchases. Talal Al Dhiyebi, chief executive officer, Aldar Properties, said: “The appetite for waterfront homes on Yas Island continues to exceed expec- tations. When we release new units, they sell out in a matter of days. We are making every effort to cater to this demand.” Located on Yas Island’s Eastern shores, Water’s Edge offers the com- plete outdoor lifestyle with pedestrian access to all amenities including a waterfront promenade with multiple dining and retail options. It also fea- tures private courtyards with spacious landscaped areas, pools, multipurpose courts, and a mosque. Water’s Edge residents will ben- efit from the abundant attractions that make Yas Island the most exciting destination in Abu Dhabi. The development lies adjacent to the upcoming Sea World theme park, and a five-minute walk from Yas Mall, Ferrari World, and the Yas Marina Circuit. Water’s Edge is scheduled to begin phased handovers between June and December 2020. Aldar to release more Water’s Edge homes Retail Seven Tides launches Anantara Residences Sky Collection UAE-headquartered developer, Seven Tides, unveiled the Anantara Resi- dences Sky Collection - fully fur- nished luxury studio apartments form part of the five-star Anantara The Palm Dubai Resort on the eastern crescent of Palm Jumeirah. Abdulla Bin Sulayem, CEO of Sev- en Tides International, said: “This is a great opportunity to own a luxury freehold property on Dubai’s Palm Ju- meirah, which continues to be one of the most sought-after locations in the emirate. Our Anantara Residences Sky Collection will appeal to a wide range of home buyers and investors, for whom prestige, quality and a strong return on investment (ROI), are pre- requisites to purchase.” The payment plan for the studios, which are priced at AED1.2mn, includes 10% upon reservation agreement; 40% upon sales and purchase agreement; and the final 50% upon completion in July 2018. Further, one- and two-bed- room apartments are located on the lower floors of the buildings and are completed and ready to move in. These are priced AED2.7mn for one-bedroom apartments, ranging from 108sqm to 141.5sqm; and AED3.9mn for two- bedroom apartments, from 164sqm to 191sqm. For these, there is a 10% pay- ment upon reservation agreement and the remaining 90% upon sales and pur- chase agreement. Apartment sizes range between 51sqm to 59sqm for a studio and are sold with high-end fittings and finish- es. They come fitted as standard with luxury furniture, fitted kitchens, rain showers and floor-to-ceiling windows. In addition to access to the Anantara The Palm Dubai Resorts’ private beach and the 10,000sqm temperature-con- trolled swimming pools, residents can use the wide variety of leisure facili- ties, including the fully equipped gym, tennis courts, and children’s play ar- eas. They also have access to any of the resort’s top-class restaurants and the Anantara Spa. Bin Sulayem added: “Our Anantara Res- idences Sky Collection offers an unpar- alleled lifestyle of luxury with stunning views over the resort’s lagoons, across Palm Jumeirah and the Dubai skyline.”

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construction business news me // January 2018 // www.cbnme.com 17 MEP Turkish engineering and con- tracting firm, AE Arma-Elek- tropanç, won a mechanical, electrical, and plumbing (MEP) works contract from Gunal Construction for a luxury hos- pitality project in Dubai. On completion, the $52mn Wow Hotel and Hotel Apart- ments project will stand tall at 336m on the Business Bay, featuring 80 floors. The lux- ury development will house 946 units with views of Burj Khalifa, hotel suites, and rental apartments. The hotel suites, restaurants, pools, and apartments are located on the 58th and 74th floors, the high- est section of the hotel, with views, said the statement from AE Arma-Elektropanç. Turkey’s AE Arma wins Dubai hotel MEP contract An eco-friendly tower with a 184,778sqm construction area, Wow Hotel and Hotel Apartments, will be focusing on smart housing solutions and aims to install low and medium high-voltage sys- tems, and generator systems besides key lighting and in- telligent building automation systems. The other key facili- ties include climate control, fire detection, fire protection, and extinguishing systems. Work began on the project in October 2017 and is due for completion by the end of 2019, said a statement from the Turkish group. The scope of work includes construction of a hotel apart- ments building compris- ing five basement levels, a ground floor, 10 car parks, three mechanical floors, 68 additional floors, and a roof. Wow Hotel and Hotel Apartments will be one of the most important accom- modation and entertain- ment centers in the region, said a top official. Burak Ç. Kızılhan, the chief executive of AE Arma-Elektropanç, said: “By taking part in major projects such as Wow Hotel and Hotel Apartments, we are trying to represent our country in the best possible way in the global arena. This will be one of the most prestigious and big Turkish establishments in the region when completed.” // Bitesize news Fit-out specialist ISG announced the appointment of Dima Qumsieh as its new business development director. Cluttons has been appointed by KAR Properties, to handle all aspects of property and FM, in addition to offering leasing services, for Busaiteen Views in Bahrain. Damac Properties announced the launch of Sahara Villas within an international golf community in the heart of Dubailand, Akoya Oxygen. Dubai based contractor, ALEC, and consultancy firm, WSP, collaborated for the next in their series 'joint graduate and early career professional' initiative.

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// NEWS // construction business news me // January 2018 18 Hospitality Basma, ARADA partner with Minor for Anantara Sharjah Resort Basma Group and ARADA have signed a management agreement with luxury hos- pitality group, Minor Hotels, to launch the Anantara Sharjah Resort. Scheduled to open in mid-2020, the 233-key Anantara Sharjah Resort will be located on a prime beachfront location in Sharjah, approximately 15 minutes’ drive from Sharjah International Airport. The Anantara Sharjah Resort will offer a selection of accommodation options in- cluding deluxe rooms and luxury suites. Facilities will include multiple dining op- tions with a specialty restaurant located on a pier, a male and female spa and wellness centre, a kids’ club, a swimming pool, and a ballroom able to accommo- date up to 540 guests for a banquet. The Anantara Sharjah Resort is co- owned by Basma Group and ARADA, with the latter playing a developer man- agement role in the delivery of the prop- erty. Both companies are headquartered in Sharjah, under the chairmanship of HE Sheikh Sultan bin Ahmed Al Qasimi. HE Sheikh Sultan bin Ahmed Al Qasimi, Abu Dhabi’s new shopping destination, Reem Mall, announced a new partnership with Azadea Group, to bring 11 brands to the mall, totalling an area coverage of more than 4,200sqm. chairman of Basma Group and chairman of ARADA, said: “Anantara is one of the world’s most prestigious luxury hotel brands, and this new property marks yet another hospitality milestone for Sharjah. We’re looking forward to launching the Anantara Sharjah Resort in 2020, and de- livering on our commitment to providing exceptional new destinations to the resi- dents of Sharjah, as well as tourists to our fast-growing emirate.” William E. Heinecke, founder, chair- man, and CEO of Minor International // Snapshot PCL, said: “We are delighted to be part- nering with Basma Group and ARADA to bring our luxury Anantara brand to Sharjah. There is a huge opportunity within the luxury segment in this fast- growing destination and we are confi- dent that Anantara will be well received within the market.” Dillip Rajakarier, CEO Minor Hotels, commented: “Anantara is very well estab- lished in the Middle East market and add- ing a resort in Sharjah is a great oppor- tunity to further extend the brand in the region and reach new markets. We look forward to working with Basma Group and ARADA to bring the new resort to market and to ensuring its success as one of the leading hotels in the emirate.” Minor Hotels currently operates 13 properties in the Middle East across four of its brands – Anantara, AVANI, Tivoli, and Oaks – and has a further strong pipeline in the region across these four brands. In total, the company currently operates 39 properties in 12 countries around the world.

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// construction business news me // January 2018 20 // Event Exhibition With the aim of address- ing the challenges raised by the digitalisation of the building and public works industry, and to propose a wider range of solutions, Intermat 2018 has chosen to shine the spotlight on new technologies developed by companies. For the very first time, start-ups, small and me- dium enterprises (SMEs), and larger firms will pres- ent their new solutions and products on four dedicated spaces: Construction Tech 100% Start Up Village, Smart Road Village, Building Smart Village, and Demolition and Recycling Village. A series of talks and round- tables on the market’s topi- cal subjects will also be on the agenda of each theme zone to encourage exchange and sharing between profes- sionals. In each zone, lec- tures and talks will be given on topical subjects, offering a platform for exchange and information sharing between professionals. Intermat 2018 has revisited its sector organisation to ful- fil its exhibitors and visitors wishes for a clearer pre- sentation of the industry's equipment, solutions and techniques, a more efficient visit, and a spotlight on the sector's latest innovation. Isabelle Alfano, director at Intermat, said: “The con- struction and infrastructure sector is a key contributing factor to the development of regions and their appeals as regards to mobility, housing, energy, and employment. In view of the profound eco- nomic, social, and environ- mental changes currently happening, Intermat ac- companies industry players in this transformation with new high-added value tools and content. “The mission of Intermat 2018 is thus to provide all construction professionals with a mix of ingredients to enhance their efficiency together with sources of innovation and inspiration to accomplish the projects of the future. This edition features an exhaustive pro- gramme specifically de- signed to identify the major construction projects in the EMEA region.” Intermat 2018 expands with four new theme villages

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INTERMAT PARIS 70 avenue du Général de Gaulle 92058 Paris La Défense Cedex - France E-mail : communication@intermatconstruction.com PARIS 23 - 28 APRIL 2018 INTERNATIONAL EXHIBITION FOR CONSTRUCTION AND INFRASTRUCTURE BLOG #intermatparis YOUR FREE BADGE AT PARIS.INTERMATCONSTRUCTION.COM CODE: PROMOCBN CO-LOCATED WITH BUILDING TOMORROW, TODAY

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// construction business news me // January 2018 22 // Event review U AE-based construction equipment conglomerate, GENAVCO, celebrated its 50th anniversary in a glitzy evening at the Jumeirah Beach Hotel. A spectacular event filled with breathtaking shows and entertainment, reflects on the history of one of the leading companies in the UAE for supplying commercial vehicles, road construction equipment, material handling equipment, lubricants, and many more industrial and construction equipment representing the world's leading brands. GENAVCO is a part of the renowned Juma Al Majid Group of companies. 50 years of success

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construction business news me // January 2018 // www.cbnme.com 23 Asif Sayeed Khan, GM, Plant and Equipment

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// construction business news me // January 2018 24 // Op-Ed Cian Farah, CEO for Aurora Real Estate Development, talks about the benefits of an end- user market over an investment driven market Custom-made in the UAE D emand in the UAE real estate sector is increasingly shifting towards end-users rather than being driven by the investment community, which has dominated the sector for so long. As a real estate development company operating in the UAE since 2005, Aurora Real Estate Development has witnessed this shift gradually taking place and foresees the growth in this segment to continue in the future. I believe that this shift has had an ex- tremely positive impact on the market and will continue to do so for the foreseeable future. Previously, investors dominated the market, with hardly any end-users. This resulted in the property market effectively turning into a stock market where buyers had little regard for efficiently designed spaces, finishes, and energy saving pro- posals. Yields were strong due to the large percentage of the population that was renting, however, the strong yield coupled with the excessive speculation eventually resulted in a large downturn. Historically, the UAE has seen expats renting property for a variety of reasons. Firstly, the down payment required to purchase property was simply out of reach. Secondly, the mortgage market was not as established as it is today, and the interest rates were very high. Thirdly, expats previously saw the UAE as a short-term placement rather than a long-term base. However, the market has now matured, and as a result those expats that remain have been increasing- ly attracted to purchase property rather than renting, due to more attractive and affordable payment plans, lower mort- gage rates, improvement in the regula- tion, and the perception that the UAE will be their home for life. a strong reputation as the landscape becomes more competitive and the opportunities less prevalent. In the prop- erty market, buyers are also scrutinising contracts and finishes more so than before and seeking an increased person- alised service and customisation associ- ated with their property, in addition to a greater focus on affordability. Anything that makes a market more difficult to operate in is ultimately a good thing, as it drives efficiency and best practice. This is why Aurora Real Estate Devel- opment has been so successful in this market and continues to grow exponen- tially. Aurora is a boutique private investor and property developer in the UAE with a robust culture and ethos of quality, transparency, and attention to detail. The company was established to address a need in the market for efficiently designed contemporary spaces in the residential property market. To date, Aurora has delivered 46,451sqm of primarily residen- tial developments over five projects and currently holds more than 65,032sqm of new developments in the pipeline. As part of the larger ECC Group of companies, Aurora is able to offer a higher level of control on quality and more integration in the construction pro- cess, minimising disputes and maximis- ing efficiency, speed and deliverability. In addition, Aurora offers a personalised tailored service and delivers creative new concepts at an affordable price. The company has gradually progressed in the market due to a business model that focuses on the buyer’s needs and re- quirements, creativity, and deliverability. Hyati Residence: a case study The shift in attention towards end-user needs is perhaps best demonstrated in Anything that makes a market more difficult to operate in is ultimately a good thing, as it drives efficiency and best practice.” The global economic downturn resulted in the UAE being hit particularly hard, especially in the real estate sector, which has thankfully experienced a gradual recovery. A slowdown in the economy typically sees a divide emerge between those companies with a strong reputation in the market and those who have lost their customers trust. As the market matures, it becomes increasingly important for companies to maintain

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construction business news me // January 2018 // www.cbnme.com 25 Looking to the future: 2018 and beyond Over a number of years, Aurora has been witnessing the UAE property development industry cultivate a keen interest in adopting new technologies in order to deliver creative concepts to the end-user market and enhance the efficiency of the design and construc- tion process. The extent to which new technologies will impact the sector in the coming years should not be under- estimated by property developers. It is important for property developers to embrace the Building Information Mod- elling (BIM) transformation. This will enable designers to collabo- rate easily and deliver more efficient designs, while minimising clashes on site. It will also help facilities man- agement companies better monitor buildings once completed and ensure the building remains in good condition. Developers must also explore sustain- ability measures, which will improve the energy requirements of the build- ing, in turn reducing costs and increas- ing the demand for the building. This is a market trend that will continue to grow at pace – especially in a country such as the UAE where ambitious proj- ects are the norm. The benefits of these tech-driven ad- vancements from a developer’s perspec- tive are diverse, including increased pro- ductivity, decreased construction costs, reduced wastage, enhanced safety, and improved sustainability, to name a few. From the end-user stand-point, tech- nology has the capability to add value across every aspect of the final product. Aurora strongly believes that by adopt- ing such technologies, companies in the region are able to eliminate many of the problems that have been troubling the sector for many years. As part of our philosophy, Aurora is embracing this technological revolution, and will contin- ue to be meticulous in its aim to enrich the emirate by providing personalised projects of exceptional value, while exceeding the unique requirements of its clients and stakeholders. Aurora’s 24,619sqm Hyati Residence project, located at Jumeirah Village Circle, Dubai. The newly completed Hyati Residence I & II consist of 20 townhouses, covering two plots (2,371sqm and 2,449sqm respectively), with each four-bedroom townhouse, consisting of a built-up area of 288sqm and spread over G+2 floors. The success of this particular project was the result of a clear vision to develop a project with the end-user in mind. It was important for the project to stand out as a milestone in the company’s journey and therefore an extensive amount of time and effort was spent on the space layout and the selection of materials, to ensure efficiently designed spaces were achieved with high-quality finishes, even if these had to be sourced internationally. For example, all the internal lights have been sourced through Fagerhult whose products are designed in Sweden. The veneers for the kitchen cabinets, the bath- room vanities and the wardrobes were transported from Spain, all the floor tiles in the units and corridors were imported from Turkey, and tiles for the reception and lift lobbies from Italy. Further, standout features in Hyati Res- idence include a creative steel and wood staircase design, low-level LED lighting in the bathrooms, the lap pools in the townhouses, large water features in the central area of the apartments, and a double height reception with a polished concrete wall behind the reception desk. These design features and many others rarely seen in the UAE ensure Hyati Residence stands out from the crowd and meets the needs of buyers. Hyati Residence was also cre- ated to address the end-users need for quality housing at an afford- able price. To that end, Aurora has already sold 17 out of 20 Hyati town- house units and has received a fan- tastic response from its buyers who have now moved into their homes. Looking ahead to the long-term future of real estate development in the UAE and throughout the region, Aurora sees great potential for new business in this sector. The UAE and Dubai, in particular, remains a highly desirable destination and the popula- tion appears to continue growing in the future. All residents require ac- commodation, and with the ever-in- creasing expectations of buyers, the responsibility lies with the developer to supply the new housing demand.

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// construction business news me // January 2018 26 Rob Jackson, RICS regional director, highlights the importance of bringing consistency to the regional construction industry Setting standards I nconsistency and lack of clarity, when trying to compare and bench- mark the costs of one project to another, is a huge global problem and more so here in the Middle East and North Africa (MENA) region. With a melting pot of nationalities, working practices, and multitude of standards being used by professionals in the industry, the challenge of ensuring a consistent method of cost measure- ment continues to be an issue many contractors, consultants, developers, governments, and investors face on a day-to-day basis. Until now, organisations have been able to collect, collate, and analyse $297bn underway. Among these are projects in the pipeline for UAE’s Expo 2020 and Saudi Arabia’s Vision 2030. A report by McKinsey Global Insti- tute, Reinventing Construction: A route to higher productivity, detailed how poorly and slowly the construction sector has grown in terms of produc- tivity compared to other industries. The report highlighted that the intro- duction of ICMS will drive consistency and transparency in the market by helping to ‘clarify the costs of projects and make performance management and holding to account easier’. Stakeholder perspectives Speaking to key industry leaders, it was apparent that ICMS as the new uniform benchmark for cost-reporting was considered a welcome move. Sinimol Noushad FRICS, a member of the ICMS standard setting committee and CEO of Dezire Project Consultants, believes the Middle East construction industry lacks a uniform benchmark for cost-reporting. She added that the property measurements and construc- tion costs are reported in an ad hoc manner and vary from project to For governments, a standard like ICMS, provides them with the option for like-for-like comparisons, enabling practitioners to provide better cost projects to their clients.” // Op-Ed their own cost data but not compare externally. To change this, a group of professional and not-for-profit organ- isations established a coalition that developed and launched the Interna- tional Construction Measurement Stan- dards (ICMS) standard in 2017. As a universal system that crosses borders, it reduces inconsistency in present- ing construction costs and enhances investor confidence, and ICMS is key for the transparency, productivity im- provements, and overall growth of the construction industry. A number of commercial organisa- tions, governments, and academic bodies formally announced their sup- port for the standard by registering as ICMS ‘Partners’. Turner & Townsend, Faithful+Gould, EY, and Arcadis are some of the early global adopt- ers. Since its launch, ICMS has also acquired regional supporters such as the Government of Ajman and other government entities in the region. The regional significance of this standard is immense, with more than 12,000 buildings and infrastructure as- sets under construction worth $448bn and a further 204 megaprojects worth

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construction business news me // January 2018 // www.cbnme.com 27 project, and company to company, depending on the practice adopted in their native HQ countries. James Irvine MRICS, country man- ager at Currie & Brown, stated that “with globalisation, the challenges of a lower oil price, and the introduction of PPP in the region, the importance of ensuring a transparent and consistent approach to project costs is height- ened. Introducing ICMS will have a significant impact on the construction market in this region.” Steven Batchelor FRICS, operations director at Faithful+Gould, remarked that ICMS will sit on top of, and be supported by various rules of measure- ment used to calculate hard construc- tion costs when issuing design and/ or construction cost reports to clients. He further added that this target of consistent reporting will ultimately give transparency for financing and benchmarking international projects, which can only be a good thing for construction professionals. Industry gains By adopting ICMS, projects will benefit from the benchmarking of construction costs consistently and transparently, identifying causes of differences in costs between projects and allowing the project teams to be able to use the data with confidence for construction financing and investment, decision- making, and related purposes. With an increasing number of con- struction and infrastructure projects in the region, government spend- ing has also increased. For govern- ments, a standard like ICMS, provides them with the option for like-for-like comparisons, enabling practitioners to provide better cost projects to their clients. It also allows assessments of value for money, making it easier to comprehend and compare project costs, giving professionals greater budget control. With news of Dubai Government in- creasing the infrastructure and construc- tion budget by 43% to support Expo 2020 and other strategic projects around the region, a standard such as ICMS can provide significant benefit for Dubai, and the rest of the region. At a recent seminar, hosted by RICS to introduce ICMS to the regional market, Moha- mad Al Dah, technical affairs director at Dubai Land Department, stated that currently more than one method exists for measuring things, and each firm brings its own standards. Through ICMS, a common denomi- nator to all these standards can be concluded that will go beyond and above all others. It will also help with disputes, especially with devel- opers who have multiple portfolios in different countries. By using this standard, projects can be delivered more efficiently. Investor confidence is paramount, at the moment, for GCC markets, and via ICMS, financial rigour can be added to construction projects that will enable better investment security to interna- tional lenders or multilateral develop- ment backers. Through this standard, improved cost projections can be provided to clients, helping developers avoid time and cost coverages, as well as under-investment in projects. Moath Maqbol, the GIS manager at Aldar, affirmed that “the impact of having simplicity in coding will be great and ICMS will also make it easier and use- ful to present values to clients”. Common and transparent data, provided through ICMS, will improve the dialogue between investors and developers, as Maqbol acknowl- edged, that they let consultants do the cost coding and each consultant has a different way of doing it, bring- ing inconsistency. Adopting the standard Moving away from traditional mea- surement practices can be difficult for practitioners. According to Dah, educating the end users is one of the most prominent challenges, “we need to create awareness and educate them on the benefits and implementation of ICMS. The change has to be market driven”. To support the implementation of ICMS, RICS has developed various tools to help industry profession- als. The recently launched, ICMS Explained: A user guide for the International Construction Measure- ment Standards, supports the financial management of construction projects that can be applied to any market in the world. It allows practitioners and service providers to capitalise on the technical innovation of an internation- ally-developed standard and scope out the fee-earning potential of data comparisons and cost analysis. With the increase of construction and infrastructure projects in the region, a globally recognised standard such as ICMS will revolutionise how the projects are reported and man- aged. Professionals using ICMS will be able to compare construction costs across a client portfolio or with similar projects in the region.

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// construction business news me // January 2018 28 The Trendsetters // Cover Story CBNME talks to five leading industry players to gauge the sentiments, whether positive or negative, for the construction and real estate sectors in 2018 I n the GCC, the reducing volume of project awards has been a major issue affecting the regional con- struction industry, but it is not the only one. A market outlook study by Deloitte states that due to the lower number of projects and tightened budgets generally, there is an increased level of competition across the industry to secure those few contracts that are still being awarded, and this has trans- lated into downward pricing pressure, i.e. reduced margins when prepar- ing project budgets or estimates. The past year certainly presented positive macroeconomic drivers for construc- tion that include population growth, diversified economic growth, a growing labour force, and mega events such as Vision 2030 and Expo 2020, in addition to a strong tourism drive. But will 2018 represent an improvement over 2017? Five top industry leaders present their views about the same:

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construction business news me // January 2018 // www.cbnme.com 29 Strategies for 2018 We intend to continue investing in our home market, the UAE, as well as steadily expanding our footprint across the region. Khansaheb Industries has a steady pipeline of projects and we will continue to approach both end-users and consultants to strengthen the busi- ness through more regional orders. We seek to grow or- ganically and one of the ways in which we will do this is by expanding our manufacturing capabilities. Hence, we are opening a new facility in Jebel Ali’s Technopark in Q1 2018, which will increase our light manufacturing capacity for products such as non-metallic air ducts. Focus trend Supply will be a critical factor determining value of property in the region, both residential and commer- cial. With more units set to be introduced in 2018 on the back of increased construction activity ahead of Expo 2020, this would pressurise real estate prices. Yet, prime locations in Dubai still offer attractive yields to investors and demand for units within these areas has remained stable. Levels of demand will also be in- fluenced by other factors such as employment growth, business conditions and oil price volatility, as both play a role in determining in investor sentiment when putting cash into the real estate market. It is highly unlikely that we will see any inflation in house prices, given the current liquidity challenges in the market. It seems as though, overall, the market will continue to bottom out in 2018. Past year performance 2017 was a very positive year for us with a consistent flow of projects, through which we were able to grow our business. We are confident that 2018 will be an even better year because of our expansion as well as the new products we will introduce in the market. In 2017, we acquired an exclusive license to manufac- ture Spiralite in the UAE. This will be a critical HVAC component for domestic, commercial, and industrial buildings in order to meet sustainable targets, as it is an energy efficient ductwork system which can offer significant energy savings of up to 58%. Strategies for 2018 We do have some plans for a masterplan project cater- ing to the mid-end segment. The project will not be in our flagship Sobha Hartland; it’ll be another location. We’re in talks, and at some point, we’ll finalise. But we’re not yet ready to make an official announcement. There’s something in the pipeline, but we don’t want to disclose things unless everything is confirmed. Focus trend The general market is on an upswing; things are changing for the better. We’ve seen that 2017 has been definitely better than 2016; the second half has been extremely encouraging. The whole response from the market has been very exciting in the last few months. Dubai is one of the best places in the world for peo- ple to live in, and to invest in. Demand for quality real estate is definitely going up and contrary to what the market has been talking about, supply is not enough. There’s only so much being built. The next 10 years are going to be a very important time for Dubai’s economy, especially real estate. Past year performance 2017 has been an exciting year for us. We’ve launched a number of new projects as well. We’ve got the new Gardenia villas, and launched two new buildings keeping in line with the market demands. We had a good year because the construction has been going well; our project and infrastructure is fully funded, and everything is in place. We’re able to progress with the construction full speed. Abdulrahman Khansaheb, managing director, Khansaheb Jyotsna Hegde, president, Sobha Group

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// construction business news me // January 2018 30 // Cover Story Strategies for 2018 Azizi Developments will remain construction-focused in 2018 and the first six months will see increased proj- ect deliveries and launches of new projects in prime locations in the emirate. We will also be consolidating on the success of our two key projects in 2017 - Azizi Riviera in Meydan One and Azizi Victoria in Moham- med bin Rashid City District 7 and focusing on their expansion, with first deliveries expected by the end of 2018 for Azizi Riviera. 2018 focus will also be on diver- sity in our developments, that will have Azizi expand on its recent multiple launches of lifestyle communities such as Azizi Riviera and Azizi Victoria. Focus trend The regional real estate sector will continue to show resilience despite market pressures and we expect to see healthy demand in 2018, along with a surge in off-plan projects in some countries in the region, like the UAE. We will also see a demand for premium real estate with good return on investment (ROI) in some markets. To respond to this demand, developers will remain focused on delivering projects in prime loca- tions with competitive payment plans. Overall, we also expect to see more regulations introduced that will benefit the real estate sector and encourage even more people to consider buying versus renting a home. Past year performance We witnessed peaked demand from GCC investors and individual buyers in 2017 and conceptualised and developed unique projects across the city to drive this demand, including our two mega projects – Azizi Riv- iera in Meydan One and Azizi Victoria in Mohammed bin Rashid City District 7. Azizi expanded its strategy in 2017 and began offering a 360˚ diversified lifestyle experience from residential clusters to mega urban developments, to buyers and investors. Our projects are located around the finest shopping malls, education facilities, recreational centres, and healthcare ameni- ties. Commencing the year, from 20 projects we have concluded 2017, with more than 100 projects in various stages of development with a total portfolio of over AED20bn. Furthermore, we are very proud to say that we have witnessed year-on-year sales growth of 200% across our properties in Dubai. Farhad Azizi, CEO, Azizi Developments

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construction business news me // January 2018 // www.cbnme.com 31 Focus trend Real estate markets are influenced by a mix of local and regional issues. While individual sectors are at different positions on their cycle in different cities across the region, the introduction of value-added tax (VAT) is a common factor that will influence all sectors in the UAE and Saudi Arabia in 2018. VAT is a key strategy in the plans of these countries to raise ad- ditional government revenue and help diversify their economies away from their current dependence upon the oil sector. While VAT is basically a ‘pass through’ tax paid by the end purchaser of a product or end consumer of a service, it will have a significant impact upon the real estate industry in 2018. The most im- mediate effects will include uncertainty and delays in invoicing and receipt of payments, that will negatively impact cash flows in all sectors of the economy. The long-term impacts of VAT are likely to include a reduc- tion in profit margins for those contractors, develop- ers, and owners who are not able to pass on the full impact of the 5% increase in their costs. As residential rents are exempted from VAT in both KSA and the UAE (with the sale of new residential supply zero rated in the UAE), VAT is likely to result in a shift of attention from the commercial to the residential sector of the market. Focus trend While e-commerce is still at the nascent stage of development in the wider Middle East region, it is clear that this trend will impact the regional real estate landscape. In the wake of online shopping, major structural changes will be required to help elevate the infrastructure and service delivery within bricks and mortar stores. This will also drive a wave of develop- ment in the industrial and logistics sphere, with new distribution facilities being developed around major transportation nodes to ensure faster delivery times, such as the Sheikh Maktoum International Airport (Dubai South), where IKEA’s new warehouse has al- ready been delivered. In terms of the mall design, an increase in on-location storage facilities and new click and collect areas will also likely be required to be able to accommodate rising sales from online platforms. As a result, the traditional store may start to take on a slightly different role, which could bring rise to an increase in the number of concept stores, and other new ways for retailers to connect with customers and elevate the retail experience. This trend is increasing the demand for high-performance logistic hubs, which is providing a further investment catalyst with interna- tional operators considering build to suit or sale and leasebacks across the region. Craig Plumb, head of research MENA, JLL Simon Townsend, head of valuations, advisory and consulting, CBRE Middle east

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// construction business news me // January 2018 32 // Interview

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construction business news me // January 2018 // www.cbnme.com 33 We are working on some of the most important projects in Dubai like the refurbishment of Dubai International Terminal 1 and the Dubai Mall Downtown extension” Ashraf Samy Botros from Al Shafar United (ASU) talks about the company’s outlook for 2018 and the impressive projects in the pipeline Al Shafar United (ASU) had a very suc- cessful year in 2017, laying its hands on some of the most prestigious projects in Dubai, according to its manag- ing director Ashraf Samy Botros. Al Shafar United for electro-mechanical engineering is an ISO 9001-2015. ISO 14001:2015, OHSAS 18001:2007 certified electro-mechanical flagship company of Al Shafar Group. It was established as an electro-mechanical department in Al Shafar General Contracting in 1989, tak- ing part in development projects being carried out in Dubai. In 2007, ASU was launched as an independent electro- mechanical LLC under the umbrella of ASGC, charged to look after electro- mechanical contracts. Botros tells CBNME: “The year 2017 was very good for us. We are a suc- cessful and reputed MEP company in Dubai currently. We are working on some of the most important projects in the emirate like the refurbishment of Dubai International Terminal 1 and the Dubai Mall Downtown extension. We have good jobs in here and are doing well.” The company started working on Emaar Properties’ Dubai Mall Down- town expansion in February 2017 and has so far completed around 30% of the entire works. Botros states: “The total amount of the job is AED227mn and we aim to finish the work by August 2018.” ASU started to work on the refur- bishment works for halls C and D at Dubai International Terminal 1 in October 2016 and Botros points out that “we will finish the AED326mn job in November 2018”. The contractor will be eyeing some more important projects in Dubai. Botros remarks: “We are looking for Phase 3 of Dubai Metro. We have submitted tenders and we are among the five shortlisted contractors. Every decision is in the process now.” He also stresses on the fact that most of the company’s portfolio of projects lies in Dubai but the MEP contractor Top of his Game

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// construction business news me // January 2018 34 has some vested interests in Egypt as well. The contractor is working on residential projects by Emaar Egypt, including villas and buildings. Tech focus ASU has implemented a building information modelling (BIM) technol- ogy in its technical office in 2014, which is responsible for the technical requirements of its projects, consisting of highly-skilled engineers to reach the desired projects delivery, ensure the completion of projects effectively and efficiently, and reduce cost and time while maintaining high standards. Botros mentions: “ASU BIM team has been trained to use the most com- mon BIM software in the construction industry (Autodesk Revit and Bentley AECOsim). The selected team members were trained by BRE academy on the implementation of BIM level 2 as per the BS1192 and PAS1192-2 standards. We re- alise the importance of being up to date with the current technologies. Therefore, we focus on developing our own solu- tions and invest in new technologies.” Some of the technologies include Revit addons written in C# and VBA to increase the efficiency of the produc- tion of shop drawings from Autodesk Revit and Bentley Aecosim. ASU has also developed its own software, ad- dons augmented reality (AR), for both Revit and AECOsim to increase the ef- ficiency of the production of its models and drawings. Botros continues: “We understand the importance of applying the latest technologies available in the market, therefore we have been investi- gating the potential use of AR technol- ogy and have invested in Trimble TX6 3D laser scanner, which is being used to produce accurate and coordinated BIM models during renovation and expansion projects and as-built models during the handover stage." Future outlook Since its inception, Botros says that the vision of the company has always been to stress on high quality, handing over the job on time, and responsibil- ity. “There is no dearth of jobs in the market, but they are different in nature. Previously, there was more of resi- dential and commercial projects; now it is changing to more of commercial projects like hotels and malls. “The market has only certain compa- nies who can do such jobs. That’s why we are so successful in the market. You can take the example of Mohammed bin Rashid library, which is in the shape of a book; not everyone will be able to do it.” The contractor plans to bag two to three more jobs, worth another AED600mn in 2018. Botros mentions: “We have planned a lot of things in the pipeline. One of the important aspect that the Dubai government is focus- sing now is the usage of solar energy. We are planning to open a factory for solar heaters. We will source the solar panels from Canada and the UK. “This supports the Smart Dubai initiative, launched by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai the smartest and happiest city in the world, and achieve the objectives of the Dubai Clean Energy Strategy 2050 to make Dubai a global hub for clean energy and green economy by provid- ing 7% of its total energy from clean energy sources by 2020, 25% by 2030, and 75% by 2050. “After sourcing the panels, we are going to assemble it in Dubai. We will supply and install the panels for our customers. We do have enough work in Dubai.” Botros plans to see ASU as a success- ful international company in the next five years. He concludes: “We are doing Mediclinic in Al Barsha South. They have also invited us to make a hospital in Mauritius. We hope to start working on the latter by the end of 2018.” Etihad Museum // Interview

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construction business news me // January 2018 // www.cbnme.com 35 Project Name & Location Employer Scope of work Value of job (AED) Start date Completion date Boulevard Point Downtown Emaar Properties electrical, plumbing, HVAC, fire protection, BMC 155.22mn Oct 2016 Sept 2018 BlueWaters Island residential buildings Meraas electrical, plumbing, HVAC, fire protection, BMC 350mn Mar 2015 Apr 2017 Vivanta By Taj, Jumeirah Lake Towers Signature Residences electrical, plumbing, HVAC, fire protection, BMC 94.5mn Apr 2016 Nov 2018 Mohammed Bin Rashid Library, Al Jaddaf Dubai Municipality electrical, plumbing, HVAC, fire protection, BMC 203.7mn Oct 2016 Apr 2018 Mediclinic Parkview Hospital, Al Barsha south Mediclinic Middle East electrical, plumbing, HVAC, fire protection, BMC 184mn Dec 2016 Sept 2018 Dubai Arena, Al Wasl Meraast electrical, plumbing, HVAC, fire protection, BMC 398mn Dec 2016 Dec 2018 Refurbishment of Dubai International Terminal 1, Halls C&D Dubai Aviation Engineering Project Corporation electrical, plumbing, HVAC, fire protection, BMC 326mn Oct 2016 Nov 2018 Dubai Mall Expansion Downtown Emaar Properties electrical, plumbing, HVAC, fire protection, BMC 227mn Feb 2017 Aug 2018 Thematic district: Opportunity Expo 2020 EXPO Dubai 2020 - - - - Al Shafar United (ASU) Projects

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// construction business news me // January 2018 36 // Feature Tamweel Tower, Jumeirah Lakes Towers

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construction business news me // January 2018 // www.cbnme.com 37 Safety first Industry experts talks about fire safety specifications in the UAE and how they should be adopted at the early stages to counter tragic mishaps In August 2017, the Torch tower in Dubai Marina caught fire, damaging 38 apartments over 64 floors, up to the 85th. There were no reported casual- ties in the incident but in the recent years, Dubai and the UAE as a whole has seen quite a few fire tragedies. To come up with permanent solutions for curbing the number of fire incidents in the country, the updated UAE Fire and Life Safety Code was unveiled at Intersec 2017. During the exhibition, First Lt Taher Hassan Altaher, head of Dubai Civil Defence (DCD)'s inspection and per- mitting section, said the 1,384-page code – 677 pages longer than its 2011 version – has been prepared based on international references and feedback from consultants, contractors, and local property developers such as Emaar and Deyaar. The new code includes guidelines related to cladding such as testing, installation, and maintenance respon- sibilities of each building development party such as clients, consultants, and contractors. Altaher added: "Existing buildings are being researched, and there's a timeline for all cladding for maintenance, after which they have to be changed. Until then, those cladding components have to be maintained." He also said that ensuring the clad- ding is eventually changed is "still on the table". "Existing towers already have DCD approvals and don't have to change it. Cladding sections under- going maintenance would have to comply with the new code." In another major update, all vital buildings in the UAE will be directly linked to a smart fire safety system of the Civil Defence where fire warn- ings will be sent automatically to operations room, said Major General Jassem Al Marzouqi, commander-in- chief of Civil Defence, Ministry of Interior, in Abu Dhabi. The require- ments for the buildings regarding the safety equipment are sprinklers, alarm system, fire extinguishers, and all safety tools to prevent fire. The improved fire safety code will be implemented in all new and upcom- ing buildings across the country. Ashish Chaturvedi, marketing manager, Ducab, believes that as a UAE corporate citizen, it is considered a responsibility to educate custom- ers as well as the wider public on the importance of fire safety. “Today, there is a high level of awareness of the importance of fire safety standards in buildings, and now there are even greater attempts being made to ensure

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// construction business news me // January 2018 38 that the highest standards are under- stood and met.” He asserts that fire safety specifica- tions should be adopted in the early stages in construction. “Within the construction field, fire performance cables are intended for all applications requiring circuit integrity during a fire. These cables generate very low smoke and are halogen free, thus helping to save human life and protect sensitive equipment. The biggest challenge to- day is that sub-standard cables do not compare when put to the test in fire conditions, and are thus frequently the cause of building fires; particularly in older infrastructure.” Chaturvedi also adds that the com- pany therefore encourages contractors to seek cables and accessories that are certified by local and international bodies to ensure the highest level of safety. “These standards may include third-party certification to BS6387 by the Lost Prevention Certification Board (LPCB) in the UK. LPCB is in turn accredited by the United Kingdom Ac- creditation Service (UKAS). “When it comes to fire safety test- ing in particular, we have complete in-house test facilities to carry out all fire tests required by BS6387. Although the fire performance test is termed as a type test, we carry out its own program of regular sample testing of fire per- formance products. It is also important that any product is certified by inde- pendent LPCB & BASEC UK to meet the latest BS EN, IEC and IEEE stan- dards, and current Code of Practice.” Karam Hamadeh, Middle East terri- tory manager at Technical Glass Prod- ucts, also believes that it is key that a strict fire safety specification is adopt- ed early on by the designer, when it comes to passive fire rated systems. He says: “The safeguard here is adopting best industry practices when it comes to testing and certification. Adopting fire safety codes and frameworks such as UL and IBC uniformly across the board - in addition to conformance to the local codes - helps in substantially reducing the margin for mistakes. “Fire rated assemblies does not only mean the successful passing of a fire test. The hose stream test and the impact safety tests are components of fire testing as important as the fire test itself. A hose stream test is a crucial component of the fire testing. It as- sesses the thermal shock resistance of an assembly and serves as a great test of robustness, a much-needed quality during a building fire.” Plans ahead Fire accidents in the UAE alone have already recorded a 41% drop during the first half of 2017 com- pared to targets set as part of the General Command of the Civil De- fense's (GCCD) 2017-2021 strategy. Chaturvedi reveals Ducab’s expecta- tion in 2018, adding “In 2018, we hope to see greater consciousness for product quality. It is encouraging to already see an increased focus on the certification of products installed to supply power to equipment used in fire-fighting, elevators, sprinkler pumps, and in large complex build- ings, where a fire response strategy involves evacuation of occupants in a phased manner. “Our full range of FlamBICC cables are rigorously tested and approved to meet the life and fire safety objectives of fire survival time as determined by the British Standard Codes of Practice. Ducab commits to meet and adhere to all new certifica- tion standards as laid down by the UAE and international authorities, and we are confident of meeting the new standards in the UAE as well. Moreover, it is increasingly important to be innovative and diverse in your portfolio, providing solutions to the specific needs of clients at the most effective price point.” In addition, Hamadeh also points out that the demand for transparent fire barriers has been pushing the in- dustry for the last six years in the GCC. “Fire rated glass and "more of it" has started to dominate project require- ments. I believe the need for larger panels, less separations, and more clar- ity in fire barriers will be the trend for 2018 and the foreseeable future. “We have recently developed the ClearView system, comprising butt-glazed, low-iron fire-rated, hose stream tested, and impact safety-rat- ed glass with a heat resistive perim- eter frame. The butt-glazed joints feature nearly colourless transitions between adjoining pieces of the low- iron glass, eliminating the need for coloured internal glass unit spacers or vertical frame mullions.” Now there are even greater attempts being made to ensure that the highest standards in fire safety are understood and met.” Ashish Chaturvedi, Ducab The safeguard here is adopting best industry practices when it comes to testing and certification.” Karam Hamadeh, Technical Glass Products // Feature

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// construction business news me // January 2018 40 Intersec 2018 points to latest technologies as tech-driven and networked homes transition from fantasy to reality Intersec 2018 F avourable government initiatives towards energy efficiency, a re- surgent construction sector, and the rise of the Internet of Things (IoT) will turn the Middle East smart home market into a $1.86bn industry by 2022, according to a recent study. The Middle East Smart Home Market report, authored by analysts TechSci Research, said demand for smart lighting, HVAC, security and ac- cess control, entertainment, and other IoT-connected home devices will grow 28% annually, with revenues more than tripling in value from an estimated $536mn in 2017. The December 2017 study said video surveillance, intrusion and fire detec- tion, along with access control would be among the fastest growing smart home segments, with revenues from these applications reaching $332mn by 2022, up from $91mn in 2017. In the GCC, high per capita incomes and growing preferences for luxurious, networked, home automation, security, access con- trol, energy management systems, and multimedia technologies. Ahmed Pauwels, CEO of Intersec’s organiser Messe Frankfurt Middle East, said: “Smart, networked, and tech-driven homes are making the transition from the realms of fantasy to reality, as in- creased consumer awareness, favourable legislation, and falling installation costs drive smart home demand across the world. In the Middle East, security is an integral part of a home’s infrastructure, and deployment of security and access control systems such as wireless locks, IP-enabled devices, and iris detection systems, is increasing. “The technology allows home-owners to monitor activities through their smart- phones, tablets, and other wireless de- vices from anywhere and anytime, and the latest solutions in the market will be on show at Intersec 2018’s Smart Home and Building Automation section.” Bird Home Automation from Germany and high-tech homes is also a key factor, with the UAE ($203mn) and Saudi Ara- bia ($182mn), comprising 38% and 34% respectively of the entire Middle East smart home market in 2017. The two Gulf countries will hold a similar market share right up to 2022, ac- cording to the report, opening up plenty of opportunities for suppliers of home automation, security, entertainment, and energy management. Many players from across the globe will look to establish partnerships with regional real estate developers, consultants, integrators, and installers at the upcoming Intersec 2018 exhibition in Dubai. The three-day security, safety, and fire protection trade fair runs from January 21-23, 2018, at the Dubai International Convention and Exhibition Centre, and features a Smart Home and Building Automation section. More than 30 of the event’s 1,300-plus exhibitors will be part of a dedicated Smart Home Pavilion, where they will showcase their latest // Event pReview

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// construction business news me // January 2018 42 and Italian companies Videx Electronics, FDF, Ksenia Security, and AVS Electron- ics, are among the global manufacturers sharing the stage at Intersec 2018’s Smart Home and Building Automation section, which at more than 300sqm, is 15% larger than the previous year. First-time exhibitor Ksenia Secu- rity will launch Lares 4.0, an IP-based integrated smart system where users can control through a single source the entire home eco-system, including ac- cess control, CCTV, heating, ventilation, and air conditioning (HVAC), along with other IoT-connected devices, such as entertainment systems. Flavio Zarlenga, sales and market- ing director at Ksenia Security, said that Lares 4.0 can be controlled at home with a mobile user interface or remotely via a dedicated mobile app. “It’s possible to receive, even by e-mail, not only main alarm signals but also important information about the system status, while by means of the in- tegrated web-server, users can remotely manage the system using smartphones or tablets. Lares 4.0 represents by far the most advanced and reliable solution in the digital revolution for both security and home and building automation. “It can control lights, climate, irriga- tion, doors, windows, or any type of IoT-connected appliances, on top of all the security aspects such as video sur- veillance, intrusion detection, or access control. We’re fully aware of the huge potential in the Middle East smart home and building automation market, and to- tally confident in our new IoT Solutions to meet and exceed expectations. “Our platforms are already fully inte- grated with the most important home automation systems and, via coop- eration with our local partners, we’ve recently developed some interesting projects in Saudi Arabia, the UAE, Jor- dan, and Bahrain.” Elsewhere, Spanish manufacturer Fermax, a specialist in audio and video door entry systems, will showcase its latest versions of audio and video access control kits, along with new IP solutions for building communications and secu- rity. Elena Ravello, brand manager of Fermax, said that the company already has a strong presence in the Middle East, having worked on several projects across the region: “Fermax has been in the Middle East for more than 10 years, and our door entry systems are installed in top reference constructions such as the Palm Jumeirah UpTown Motor City, and Princess Tower in Dubai. “Fermax targets residential and com- mercial communications along with the security markets, and Intersec gives us the opportunity to launch new products, explain personally the technical specifica- tions and the benefits of our products, as well as show their operation. We also want to enhance our brand globally, and we take advantage of this big event to meet our partners and customers, and of course find new clients from all the Middle East, North Africa, and Asia regions.” AVS Electronics will also debut its new range of Raptor wireless home automation control panels at Intersec 2018, where it will demonstrate its KNX/MODBUS interface for seamless operation. CEO Fabio Baro said: “The latest trend in the smart home market is towards integration within systems. The more a solution can be integrated with other applications in today’s smart home environment, the more successful that solution will likely become.” In its 20th anniversary edition, Inter- sec 2018 will occupy 59,000sqm across 12 halls, with the show’s other six sections covering Commercial Security, Fire and Rescue, Perimeter and Physical Security, Information and Cyber Secu- rity, Safety and Health, and Homeland Security and Policing. New developments include a Drones Pavilion and an indoor Drone Zone, while returning features include the Safety Design in Buildings Pavilion in the Fire and Rescue section, as well as an Outdoor Demonstration Zone of the latest fire rescue applications in action. A comprehensive three-day confer- ence programme will be spearheaded by Dubai’s Security Industry Regulatory Agency (SIRA) Forum, while other topics will cover cyber security, drones, arti- ficial intelligence, commercial security, and fire protection. Intersec 2018 is held under the patron- age of HH Sheikh Mansoor bin Moham- med bin Rashid Al Maktoum, and sup- ported by the Dubai Police, Dubai Civil Defence, the Dubai Police Academy, SIRA, and the Dubai Municipality. // Event pReview

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www.automechanikaDubai.com The largest international trade exhibition for the automotive service industry in the wider Middle East 1 – 3 May 2018 Some compelling show figures: 1,955 Exhibitors 30,322 Trade Visitors 25 Official Country Pavilions 57 Exhibiting Countries 136 Visiting Countries 38 International Trade Associations Register online to visit at www.automechanikaDubai.com/Logistics

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// construction business news me // January 2018 44 // Machinery & Vehicles Our monthly review of the workhorses of the construction industry Muscle & Might Muscle & Might A round-up of the important updates from the global construction equipment market A detailed look at machinery giant JCB’s rapid Loadall production line IVECO to launch its new heavy-duty Stralis X-WAY in the Middle East in 2018 Continental Tyres’ Ian Jackson talks about its latest tyre pressure monitoring system technology 46 48 52 56

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// NEWS // construction business news me // January 2018 46 construction Equipment The official agent of Raimon- di Cranes in Turkey, AKEM Group, has completed the erection of a new MRT159 topless tower crane with a height under hook (HUH) of 66m on a jobsite in Üsküdar, Istanbul. The MRT159 is the first of four Raimondi cranes to be placed on the site, which is being managed by Kalyon Construction. Kalyon Construction, with nearly 50 years in the sector, is best known for its mega infrastructure projects with a portfolio that spans trans- portation hubs, airports, and energy facilities. The Rai- mondi MRT159 is the first crane to be erected on the Kalyon Construction jobsite H Okan Deligöz, general manager, AKEM Group, said: “A total of four Rai- mondi cranes will be po- sitioned in Üsküdar. The newly-erected MRT159 is planned to be onsite for ap- proximately 12-14 months at the residential develop- ment. Two 10t MRT189s will be erected in three months’ time, and a final MRT159 is to follow shortly thereafter.” He continued: “We felt that the MRT159 would be a great value for our clients due to the crane’s maxi- mum load of 10t with a 60m jib. In Turkey, a load of iron or steel is typically around 2-2.1t, making this particular model versa- tile for any company that has recurring construction needs. Having previously worked with Kalyon Con- struction on the prestigious Kartal project designed by Zaha Hadid Architects, we have forged a strong rela- tionship based on our ded- ication to client needs in terms of technical support.” In total, four Raimondi cranes are to be erected at the residential develop- ment jobsite under Kalyon Construction. First unveiled at ANKOMAK 2016, the MRT159, which has a 65m jib length and a maximum tip load of 1650 kg, boasts a maximum load of 10,000kg. It also features a selection of three different winches with 30kW, 37kW, and 45kW mo- tors, respectively. The MRT189 guarantees easy, safe, and comfortable access to all main systems. Winches, pulleys, electrical cabin, and safety devices can all be installed in a city version of the MRT189, us- ing a city tower section, or in a climbing version. Both versions are available for in- stallation on an embedded element, a fixed cross base, or a travelling cross base. Chinese giant SANY Heavy Industry has signed a $86mn purchasing agreement with a Kuwaiti engineering con- struction contractor. Accord- ing to the manufacturer, the sale is SANY's largest inter- national order in Middle East market so far. Under the deal, SANY is providing a full range of its products to its Kuwaiti cus- tomer, including more than 600 truck cranes, excavators, and rotary drilling rigs. The equipment is intended to support Kuwait's national in- frastructure projects, which are expected to greatly pro- mote the implementation of "Belt and Road Initiative" in the Middle East. Signalling the significance of the deal, Xiang Wenbo, president of SANY Heavy Industry and Zhou Wanc- hun, chairman of SANY In- ternational Headquarters, attended the signing cer- emony. "SANY has always regarded product quality and service as its core com- petitiveness in the overseas markets," Xiang said, add- ing that SANY developed specific products to suit the tough working conditions in the Middle East. SANY has invested heavily to build its service network as it looks to build on its sol- id foundation for even great- er development within the Middle East market. Since its first entry into the Middle East market in 2006, SANY's machines have participated in a number of mega proj- ects' construction, including Burj Khalifa Tower, Jazan Economic City in Saudi Ara- bia, and the world's largest airport -- King Abdulaziz In- ternational Airport. Akem erects 66m crane in Istanbul SANY chairman hails largest ever Middle East order

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construction business news me // January 2018 // www.cbnme.com 47 cranes Kuwait success for Abu Dhabi-based NFT NFT, one of the world's lead- ing tower crane suppliers, has boosted its market presence in Kuwait with a number of deliveries to major projects in the country. One of the most significant deals has seen the first Potain self-erecting cranes enter the country. The customer, Nass- er Al Hajri & Partners Compa- ny, bought an Igo T130 and an Igo 50, both of which are being used to lift pipes and support the installation of heavy materials at the Mina Al Ahmadi and Mina Abdul- lah (MAB) refineries owned by Kuwait National Petro- leum Company. NFT also won its first ever contract with local construction giant, Combined Group Con- tracting (CGC). The company has supplied a number of high capacity MD 1100 and MD 550 cranes to lead construction on a $164mn car park facility for Kuwait's Ministry of Finance at Al-Farawaniya, Al-Farwaniyah Governorate, Kuwait. Nabil Al Zahlwai, CEO, NFT, said: “These deliveries mark the first appearance in Kuwait of both self-erecting and high- capacity MD special applica- tions cranes. Potain has the most comprehensive range of tower cranes in the world and these projects are a great op- portunity to show the market what they can do. Our team in Kuwait, led by Yousef El Ghabra and Fadi Daher, has worked extremely hard to win these contracts, but our unique experience and expertise with tower cranes means we’re al- ready repaying our customers’ faith by providing first-class support, even with stringent project requirements.” The high capacity MD cranes are needed because of the precast concrete sections used in the car park design. These require loads of up to 20t to be lifted, so NFT specified four MD1100 and two MD550 cranes, with jib lengths ranging from 40m to 70m and working heights from 50m up to 73m. The maximum capacity of the MD1100 models is 40t, while the MD550 can lift up to 25t. NFT is providing full Mani- towoc Crane Care support on the car park project. This includes operators, technical study and support, and de- livery and installation on site of the cranes. Fadi Daher, senior sales manager at NFT, said this was another important differen- tiator that helped secure the contract. “We have technicians installed permanently on site, so there is always someone there, no matter what time. We also have a container of spare parts on site, so any downtime is minimised.” Construction of the car park started in June 2016 with the tower cranes arriving in May 2017. CGC is renting the cranes from NFT over 29 months un- der a “lease to own” finance programme. This flexible ar- rangement gives CGC the op- portunity to utilise the cranes on future projects. Daher added: “We always try to be as flexible as possible for our clients. The customer is satisfied with NFT’s and the tower cranes’ performance and has invited us to bid for other projects.” Doosan Portable Power has launched a new range of four generators from 20- 60kVA. Beyond construction and rental, the new generators, which are avail- able as both 50Hz and 60Hz versions, extend the Doosan portfolio to a wider audience to cover applications such as home standby, telecommunications, and backup power for small businesses, said the company in a statement. The four new generators – G20, G30, G45, and G60 – provide prime power outputs of 20kVA, 30kVA, 45kVA, and 63kVA and all four units are available as open units (XF) or sound attenuated versions (XW). Doosan added that the equivalent 60Hz versions are also avail- able in a range of voltages between 220V and 480V (phase to phase). The new generators are powered by Cummins diesel engines and are covered by the best standard warranty on the mar- ket – two years and/or 4000 hours on the complete powertrain. The new generators are also fully supported by the extensive Doosan Portable Power dealer network for the Middle East and Africa, from unit start-up to complete servicing, mainte- nance and troubleshooting back-up. In addition to dealer parts stock for planned servicing or emergency needs, parts are also available through the Doosan net- work and from within the Doosan Parts warehouse in Dubai. Doosan explained: “Sharing the same design and characteristics, the new generators offer robustness and reliability, high performance, and a wide choice of features to meet the needs of a very wide range of power applications, from prime power in re- mote areas to stationary units in grid back up. The standard frame-fuel tank configuration of the generators ensures autonomy of at least 15 hours at 75% of the load, allowing users to work reg- ular shifts without refuelling concerns.” Safe and easy access to operation and maintenance areas has been a pri- ority throughout the design of the new generators. Accessibility to key areas, including the engine radiator compart- ment and maintenance points, has been enhanced. The air flow has been optimised throughout the generator unit to meet cooling requirements for locations with high ambient tempera- tures, without impact on the electrical output performance. A user-friendly feature is the electri- cal control and power compartment, which has been designed to meet the highest safety, reliability, and flexibility requirements. All control functions are grouped together on the 6010 Deep Sea Electronics simple-to-use operator control panel, displaying critical operat- ing parameters at a glance. Doosan refreshes prime power genset line-up

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// construction business news me // January 2018 48 // Manufacturing A look at machinery giant JCB’s rapid Loadall production line A 40-year stretch N estled in a quiet green corner of Staffordshire in the heart of the UK and set aside a dreamy lake that looks out onto some of the country’s most stunning land- scapes, JCB’s Rocester home doesn’t immediately strike you as the hub of one of the machinery industries’ most successful stories over the past four decades. As JCB prepares to mark the 40th anniversary of Loadall production later this year, CBNME takes a look at the UK production line for a detailed look at the manufacturing processes that make the company’s telescopic han- dler the biggest selling in the world. From the first Loadall in 1977 JCB built its 200,000th telehandler in 2016 and this year celebrates four decades of this iconic machine. There are now more than 30 Loadall mod- els, though the number of engine, transmission, boom, and cab options results in over 1,000 machine con- figurations being built at the centre of JCB’s Rocester facility. Over 35,000 tonnes of steel a year goes into the construction of chassis, stabiliser legs, and booms. Sheet steel is fed into two main production lines, one for booms and one for chas- sis, with a side production area for stabiliser legs. The steel is cut using computer-controlled laser and CNC plasma cutting machines. A 650-tonne press is used to form the box section of the boom, which is tack welded with initial fitting of bushes, while chassis sides are drilled and tapped with all necessary holes. It takes 45 minutes to make two chassis sides, with a further seven to 12 minutes of drilling and tapping. All chassis and boom structures are tack welded by hand. Up to 70% of the chassis and boom weld is then carried out by robot welders, with manual operators completing the dif- ficult to access welds. An incredible 14,509,818m of welding wire is used in the Loadall facility annually. A twin boring machine completes a final bore of the boom mounting points to ensure that the two holes are perfectly aligned. Two £1.2mn computer-controlled machining centres

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TRUCKS

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// construction business news me // January 2018 50 drill, tap, and finish the boom sections ready for assembly. Booms, chassis, and stabilisers are all fed through a two- hour paint process, starting with a shot blast to remove con- tamination and prepare the steel for painting. All compo- nents are painted before assembly to ensure a high-quality finish. JCB gets through 73,000l of primer and 50,000l of gloss each year painting Loadalls. Finished components are baked at 90-120°C to provide a robust, protective covering for the machine. While yellow is the most popular colour, customers can also order Loadalls in their own livery. There are 300 staff in manufacturing and more than 460 workers in Loadall assembly. Sub-assembly sections sit on either side of the main assembly lines, preparing wiring harnesses, engines and transmissions, and cabs and axle as- semblies. These feed into the main lines as required, ensur- ing that production moves swiftly through the process. JCB axles are fitted with wheels and attached to the chassis. Profitable in a downturn JCB defied challenging market conditions by growing earnings by more than 34% in 2016, the company revealed earlier this summer. Announcing its annual results for last year, the Staffordshire-based machinery maker revealed that earnings for 2016 on an EBITDA basis were £287mn (2015: £214mn). Sales turnover rose by nearly 12% to £2.62bn (2015: £2.34bn), while machine sales increased to 66,011 (2015: 59,844). This robust performance was achieved despite a contraction in the global construction equipment market of 1% in 2016. “JCB’s strong performance in 2016 was against some economic headwinds which saw the global construction equipment market shrink,” explained JCB CEO Graeme Macdonald. “Some markets grew, such as India, which rose by almost 40%, while others fell, including Brazil which was down by more than 40%. The UK market contracted by 5% in 2016 but the good news is that, after a difficult few years, European markets grew strongly and were up by more than 10% last year.” JCB chairman Lord Bamford added: “While we face challenges in some parts of the world, the global construction market so far in 2017 is buoyant and is expected to grow further during the remainder of this year. We continue to launch innovative new products and enter new sectors which will enable JCB to secure strong levels of growth in the future. “The UK market has got off to a particularly buoyant start this year, with housebuilding driving demand for compact and mid-range equipment, particularly telescopic handlers. In addition, there are some key infrastructure projects such as HS2 (high speed rail 2) and Hinkley Point and Thames Tideway which are in the early stages of implementation, so customers are currently evaluating their fleet and machinery needs. Road improvements and widening schemes across the UK are also leading to increased demand for equipment.” // Manufacturing

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construction business news me // January 2018 // www.cbnme.com 51 Hydraulic valve blocks, rams and cylin- ders from the hydraulic component divi- sion within the Rocester site go on next. Engines from JCB Power Systems are attached to transmissions from JCB Transmissions, with exhausts and other ancillaries added on the sub- assembly lines. There are around 3,000 components in a JCB Loadall and with up to 1,000 configurations, every build is strictly coordinated. With 35 build stages, it takes around eight hours to fully assemble a Loadall. Loadall cabs arrive fully finished and these are installed along with the machine’s cooling pack. Three inspection points ensure that every machine meets with JCB’s exacting quality standards. JCB built its 200,000th telehandler in 2016 and this year celebrates four decades of this iconic machine. ” Oils and fluids are added, and the engine started. Every Loadall goes on to a rolling road and the engine and transmission are put through 13 minutes of speed tests, to calibrate the driveline. Once warmed through, the Loadalls enter a UVXPOSE booth that uses ultra-violet light to check the in- tegrity of hydraulic componentry. The initial fluids contain a tracing additive that is easily visible under UV light. An external test facility follows, where 10 operators carry intensive op- erational testing. This includes warm- up, steering tests, and weight tests. At- tachments that have been ordered are also installed and tested. The machines then enter a second UVXPOSE dark room for checking, as part of an addi- tional quality sign-off, before heading to the pre-delivery inspection centre. In August 2016, JCB opened the Loadall Customer Focus Centre (CFC). Every machine comes from pre- deli very inspection (PDI) to the CFC, where it is checked over again. Decals are attached and customisation com- pleted, with the addition of toolboxes, lighting, and other optional equipment. The real innovation in the CFC is the Command Centre. Every Loadall model has JCB’s LiveLink telematics system feed- ing information into the Command Centre. Data is also imported from JCB’s tech web service centre and from customer calls. A team collates all available informa- tion from Loadalls all over the world. If a concern is identified, the team initiates an enquiry into the cause and if it relates to manufacturing, this can be fed back to the factory speedily. Afterwards, the Com- mand Centre then tracks the next wave of machines to be produced to ensure quality is maintained to the highest stan- dards. The system greatly improves the speed of feedback from the field, which would traditionally have taken weeks to get back to manufacturing.

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// construction business news me // January 2018 52 // Trucks Meet IVECO’s new heavy duty Stralis X-WAY, which launches in the Middle East in 2018 An X-WAY Vision I VECO’s newest truck, the Stralis X-WAY, will soon be launching in the Middle East and, in many ways, combines its work on upgrading the on-highway Stralis range with the robustness of its Trakker line-up. The Stralis X-WAY debuted last summer at the IVECO plant in Madrid ahead of a European launch towards the end of 2017. Accord- ing to the CNH industrial-owned and Italy-based company, the truck “raises the stakes in light off-road missions with the highest payload in its segment, combining the best of IVECO’s fuel efficiency and safety technologies with the brand’s most robust chassis design”. The Stralis X-WAY has been de- signed with an exceptionally low kerb weight, allowing it to traverse from heavy duty missions on high- ways to light work in off-road situa- tions environments such as construc- tion sites. IVECO believes that this, combined with its sturdy chassis, gives it the best payload capacity in the market in its category and the Super Loader (SL) version on an 8×4 chassis offers a kerb weight as low as 9t. This is currently the lowest available within the industry.

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construction business news me // January 2018 // www.cbnme.com 53 A wide range of high-efficiency engines, available with displace- ments of 9l, 11l, and 13l also means that the Stralis X-WAY is able to suit many different missions. IVECO be- lieves that it may be used to deliver “excellent” fuel economy and “a powerful performance”. In Europe, the X-WAY launched with a new variation of the Hi-SCR engine technology which requires no EGR (as in exhaust gas recircula- tion, a feature of most modern diesel engines to lower NOx to meet Euro V1 regulations but criticised for excessive fuel consumption) and no parked regeneration. IVECO says its system, which has been used on its Trakker and Stralis trucks, dramati- cally cuts emissions and increases fuel efficiency, while lowering maintenance costs. It is particularly well suited to construction logistics missions where the absence of EGR – which lowers power density – also brings benefits in terms of payload as it makes the vehicle lighter. While details of the engine being strapped to the Middle East ver- sion remain unconfirmed, should it launch with a version of the Hi- SCR engine, then IVECO will have an extremely compelling offer for Middle East fleets. IVECO has placed total cost of ownership at the centre of its marketing strategy in recent years and beyond the engine, the Stralis X-WAY, comes packed with advanced technology and is intended to allow for long service intervals. Add the durability of the Trakker chassis and the Stralis X-WAY promises savings in maintenance and repairs. The use of disc brakes further reduces costs, thanks to reduced wear and tear. The fuel reduction technolo- gies used on the European launch models include the same intelligent systems such as Hi-Cruise and the Smart Auxiliaries that achieved a 11.2% fuel reduction on 2016’s new Stralis XP heavy truck as validated by TÜV SÜD, one of the world’s leading independent technical ser- vice organisations. A modular, mission-oriented ap- proach has been used on the Stralis X-WAY, enabling a long list of custom- isation options that can be designed to suit fleet requirements for a wide variety of applications. It offers a choice of artic and rigid versions - different axles, suspensions, vehicle setups, engines, and transmissions; hi-traction hydrostatic drive; a wide range of engines and gearbox PTOs; Our new X-WAY combines the legendary Trakker chassis strength with all the fuel saving and safety features of the New Stralis.”

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// construction business news me // January 2018 54 // Trucks and on- and off-road homologations. The wide choice of features and com- ponents, the structural strength, and low kerb weight result in a vehicle that can be configured for an exten- sive variety of missions, says IVECO. The Stralis X-WAY offers a choice of cabs - the AD (Active Day) short cab with low roof, AT (Active Time) sleeper cab with low or medium roof, and for ultimate comfort, AS (Active Space) sleeper cab, which was designed around the driver for the long-haul missions of the New Stralis XP. According to IVECO, driv- ers will be just as comfortable and safe on the longer on-road sections of their missions and on the shorter off-road drives when collecting or delivering a load on a jobsite. Pierre Lahutte, IVECO’s brand president, says: “The Stralis X-WAY breaks new ground in missions that have very specific requirements. Designed for on-road applications and light off-road mobility, our new X-WAY combines the legendary Trakker chassis strength with all the fuel saving and safety features of the New Stralis. It offers all the perfor- mance and comfort benefits of our most advanced long haul on-road trucks like the latest XP, together with the robustness of our toughest off-road vehicle. “With the X-WAY, our customers can have the confidence to tackle the uneven and sometimes challenging terrain encountered during the ‘last mile’ when delivering to construc- tion sites. High productivity, safety, and excellent total cost of ownership (TCO) for light off-road missions: this is what our customers can expect from our brand-new truck.”

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EVERYTHING YOU WANT IN A 19 FT SCISSOR LIFT. Meet your go-to rental machine. The new 1932R was designed with reliability, serviceability and affordability in mind. This workhorse of a scissor lift features an all-steel swing out tray, improved battery charger and strategically placed components for quick and easy maintenance. While active pothole protection provides optimal ground clearance when you need it. All of this, and more, at an affordable price. Learn more at www.jlg.com/1932R YOUR NEW, AFFORDABLE WORKHORSE EVERYTHING YOU WANT IN A 8 M SCISSOR LIFT. Meet your go-to rental machine. The new 1932R was designed with reliability, serviceability and affordability in mind. This workhorse of a scissor lift features an all-steel swing out tray, improved battery charger and strategically placed components for quick and easy maintenance. While active pothole protection provides optimal ground clearance when you need it. All of this, and more, at an affordable price. Learn more at www.jlg.com JLG Industries | JAFZA View | PO Box 262728 | LB 19, 20th Floor, Office 05 | Jebel Ali | Dubai | measales@jlg.com

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// construction business news me // January 2018 56 CBNME talks to Continental Tyres’ Ian Jackson about its latest tyre pressure monitoring system (TPMS) technology The pressure is on The Emirates Authority for Standardi- sation and Metrology (ESMA) recently announced that it was introducing a smart chip system to prevent the use of fakes and monitor the integrity of tyres. While it is an intelligent and sophisticated system – the UAE’s is the most advanced system of its type in the world – delegates at a special event held by Continental Tyres and RoadSafetyUAE in December 2017, were given a preview of how the launch of the German tyre manufac- turer’s own state-of-the-art technol- ogy, ContiPressureCheck, can use data from tyres to save even more lives as well as lower fleet costs. Ian Jackson, technical systems, sales and services manager for Continental Tyre Group, tells CBNME that the tyre pres- sure monitoring system (TPMS) uses an array of sensors to provide live pressure data and additional warnings at the point where there has been both a 10% and then 20% reduction in air pressure inside the tyre, notifying the driver of a problem. Jackson explains: “ContiPressure- Check allows for the safe resolution of a potential tyre incident, allowing the driver to stop at a service station or off the road before the situation becomes critical. As tyre inflation pressure directly contributes to the vehicle’s overall fuel efficiency, providing the ability to constantly monitor this offers the operator the opportunity to reduce their fuel costs.” In addition to inflation pressure, ContiPressureCheck also constantly measures tyre temperature. Accord- ing to Jackson, the system looks for spikes in tyre temperatures as it can be an indicator of a failure which, if left untreated, could have costly or even dangerous consequences. “Should spikes in temperature occur, which when investigated cannot be attributed // tyres

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// construction business news me // January 2018 58 to the tyres, this flags potential mechanical issues such as binding brake or wheel bearing failures.” Research by Continental Tyres shows that as many as one in four truck tyres may be running underinflated by 10%. This not only leads to significantly higher fuel costs – as under-inflation can increase fuel consumption by up to 3% - but also contributes to the likelihood of tyre failure, which is currently responsible for 20% of all truck breakdowns. According to Jackson, 90% of tyre related breakdowns are preceded by undetected punctures. “Safety is, of course, the primary benefit as the system will pre-warn the driver of any temperature or inflation issues. Larger commercial vehicles obviously have quite a distance between where the driver is sitting and the tyres themselves, so it is important for them to be aware of the condition of their tyres.” Tyre monitoring in the UAE How to store tyres The Emirates Authority for Standardisation and Metrology (ESMA) announced the launch of a modern generation of tyre monitoring system in the UAE at last year’s GITEX event, which includes the use of a smart chip planted inside tyres and connected to a national vehicle monitoring system. The system is seen as an effective way of monitoring the safety and reliability of vehicle tyres on the country’s roads. The UAE is the first country to apply this system to improve the safety of passengers and decrease the rate of accidents related to sub-standard tyres. ESMA developed the technology to monitor vehicle tyres, to prevent the use of sub-standard or recycled tyres on the country’s roads, and enable relevant authorities to prevent tampering and monitor the level of tyre safety. According to ESMA, the system will directly decrease the number of traffic accidents caused by the use of low-quality tyres. If stored in unfavourable conditions or if not properly handled, tyres change their physical properties. This can lead to a shorter service life, and the tires may even deteriorate to the extent that they become unusable. Correctly stored and handled tires retain their properties virtually unchanged for several years. Tyres should never be stored in the open air, even under a protective covering. Tyres also should be stored in a cool, dry area, moderately ventilated and away from direct sunlight. The storage temperature must not exceed normal room temperature. In heated areas, the tyres must be shielded from the heat source. The tyres must be protected from direct sunlight and continuous changes of air. As ozone is particularly damaging to tyres, the storage area must not contain any devices (electric generators or compressors) that generate ozone. Solvents, fuels, lubricants, chemicals, etc, should not come in direct contact with the tyres. // tyres

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construction business news me // January 2018 // www.cbnme.com 59 He continues: “The main benefit with ContiPressureCheck is that it is constantly transmitting live data, continually pre-empting any potential issues in real time.” Unlike other systems that attach sensors to the pressure valve on the tyre, the ContiPressureCheck sensor is attached to the inside of the tyre itself, which improves measurement accuracy, claims Jackson. “Devices which are strapped to a metal wheel rim will be more susceptible to heat transfer during braking, making it difficult to monitor the temperature effectively. Sensors that are attached to the valves have the issue that the primary air seal is removed and in- stead rely entirely on the O-ring.” Continental’s own TPMS is the result of a partnership between the company’s tyre and automotive sys- tems divisions, and Jackson says that it has been specifically designed from a tyre manufacturer’s point of view: “We understand how a tyre behaves and what factors routinely effect its performance, so we built a TPMS with those in mind.” The sensors used by ContiPres- sureCheck come in a rubber housing which is mounted inside the tyre. When the tyre needs replacing, the sensor is simply removed and fitted into a new housing and placed into the new tyre to continue its service life. If a new sensor is required and fitted, the system will evaluate all the sensors and by default, recognise and accept the new addition. If two or more new sensors need replac- ing at the same time, there is a need to reconfigure the system using the hand-held device. According to Jackson any tyre fitter can install the system once they have had proper training and possess “a thorough understanding of commercial vehicle electronics”. Another charm to the system, he adds, is that it requires no mainte- nance at all. “If a wheel changes position, the system simply needs to be reconfigured via the hand-held devices,” he says, adding that the sen- sors will last approximately six years or 600,000km, “whichever comes first, and replacement sensors can easily be purchased from Continental Tyres or from an approved ContiPressure- Check stockist”. While the system is at the cutting edge of tyre technology, Continental Tyres has worked hard to ensure fleets of any type and budget can utilise it. Jackson says: “I genuinely believe all fleets could benefit, which is why we have tailored the system to allow for different applications. However, a long-distance truck operator may prefer live data streamed to the driver to ensure real time assessment of the tyres condition when away from base. But what is worth bearing in mind is We will be shipping from our factories with the same quality wherever you are. It’s a truly first global platform.”

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// construction business news me // January 2018 60 that it doesn’t need to be complicated. “Our ContiPressureCheck ‘Light’ is an entry level system which simply uses the sensors in the tyres and an easy-to-use hand-held device. With this ‘Light’ version, a quick walk round check can be completed once a week – which is enough for some users. This will enable an accurate pressure and temperature report to be generated for the whole fleet ex- tremely quickly.” If deployed across a whole fleet us- ing a telematic system, fleet managers would be able to access live data from all their vehicles, which Jackson says, will not only help report fleet-wide potential problems, but also gener- ate reports to ensure an optimal tyre policy going forward. He adds that the system will also work with software such as its automatic trailer learning (ATL) to ensure truck and trailers can be switched as and when necessary with the system automatically connect- ing with them. “This not only involves minimal disruption, but also means that if a trailer has not been utilised for a while, ContiPressureCheck will run a complete check on all the new tyres it registers,” he explains. While ContiPressureCheck has only just been introduced to the Middle East, it has been out in the wild and used by fleets since 2014 in some markets, and Jackson says the reaction has been very positive so far. “To the point where we have some customers tell us that drivers prefer vehicles with ContiPressureCheck fitted. One of our ongoing customer initiatives is to pro- vide practical advice and training tools to ensure drivers and fitters are fully up to speed on the system. We find when this is done, that the benefits speak for themselves.” The use of TPMS has been mandato- ry in the EU and the US for a number of years on passenger cars, and Jack- son argues that legislation that requires it on new commercial vehicles should follow suit. “Without a doubt, it would make the roads a far safer place. TPMS is essential to identify any potential in- flation or temperature problems before they occur. Drivers can safely pull in for repairs at a service station or safe site rather than trying to fix a problem on the side of the road, which is, in itself, dangerous.” As the interview draws to a close, Jackson looks ahead to how Con- tintental Tyres sees the technology progressing. He concludes: “Telemat- ics integration on a bigger scale is a priority for us and we’re working with a number of telematics compa- nies through our customers. And the integration of tyre wear information is something we are looking at for the next phase.” // tyres

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// construction business news me // January 2018 62 Investment CNH Industrial (CNHI) suc- cessfully took part in the 22nd edition of the World Investment Conference, an annual event organised by the World Association of In- vestment Promotion Agen- cies (WAIPA). The conference, held on November 27 - 28, 2017, in Dubai, was attended by investment promotion agen- cies from all over the world, high-ranking representa- tives of public and private institutions, development agencies, universities, and NGOs. The 2017 edition of the conference, which is traditionally oriented to- wards the promotion of di- rect foreign investment, was particularly aimed at sup- porting investments that are able to guarantee sustain- able development at local and global levels. CNHI was the only private eral of its brands, notably CASE Construction Equip- ment, IVECO, IVECO AS- TRA, and FPT Industrial. CNHI was represented at the conference by Michele Ziosi, head of institutional relations Europe, Middle East, Africa, and Asia-Pacif- ic, who opened his talk by explaining how the CASE brand has been progres- sively expanding in the Gulf region, starting from Dubai itself, with the goal of accompanying the con- CNHI successfully concludes World Investment Conference corporation in the capital goods sector to be invited to the conference, due in part to its business portfolio that covers all areas of infra- structure development, from earthmoving equipment to goods and passenger trans- port vehicles, from quarry- construction vehicles to en- gines for power generation applications. The company is present in the Middle East and North Africa (MENA) region with extensive sales and service network for sev- tinual growth taking place in the area. Also, in relation to the challenges and opportuni- ties of corporate invest- ments, Ziosi stressed that “the sustainability of prod- ucts and processes is a key ingredient of the success of a company’s investments. In this context, CNHI’s leadership in the research, development, and sale of alternative fuel machines and engines alongside the most advanced and cleanest of conventional fuel units, provides ample evidence of the company’s commitment to assisting in corporate communications and the drive to reduce emissions in the environment; like- wise, the company’s many projects supporting local communities testify to its commitment in the realm of social accountability”. Official Raimondi Cranes agent, Interkran AG (Interkran), based in Lachen, Swit- zerland, has erected a total of five tower cranes in the Swiss town of Schaffhausen. The jobsite is a mixed-use project based in Schaffhausen’s old steelworks and will include residential, commercial, and office space. Swiss developer and builder, Klaiber Bau AG, will position the five cranes for a period of approximately two years, where they will be used in the full build of the large-scale project. “We have erected five Raimondi cranes onsite in Schaffhausen, two MRT223s and three MRT189s. The heavy lifting MRT223 has jib lengths of 70m and 66m, while the MRT189 has jib lengths from 65m, 60m and 42.5m respectively. This Klaiber Bau jobsite was fully attended to by the Interkran team in terms of the crane needs, from all logistics and transport to technical and application perspectives,” explained Teixeira. Now celebrating nearly two decades in the sector, Texeira added that Interkran has successfully collaborated previously with Klaiber Bau on smaller projects, which led to the latest work between the two companies. “Our work with Klaiber Bau has been mutually rewarding, and Interkran has put our full strength behind servicing our client on this demanding jobsite. We’re pleased to put our five of our Raimondi fleet at their disposal for use in this important project.” The ambitious community revitalisation project plans to dedicate 73% of the completed space to residential housing, with additional dining and public ser- vice areas projected to employ approximately 500 individuals. The development’s showpiece city garden will be open to the public, and ample vehicle and bicycle parking is also incorporated into the plans. Interkran erects five Raimondi tower cranes in Schaffhausen // Supplier News

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construction business news me // January 2018 // www.cbnme.com 63 Aluminium facade systems specialist, Technal Middle East, has launched a cam- paign to create more awareness among UAE building contractors, consultants, and specifiers about fire safety for building facades. According to Sam Robinson, general manager, Technal Middle East: “We have developed a guideline to help the construction industry better understand how to ensure compliance with the relevant codes and standards for fire safety of external walls on high-rise buildings. Our guideline makes understanding the fire hazards of combustible external wall materials clearer. In particular, we focus on the EN-1364-4 fire resistance test required in the UAE. Fire resistance is deter- mined through destructive fire testing and the EN 1364-4 fire test is one of the most stringent and hardest to get through.” To kickstart the campaign, Technal organised a seminar on the UAE Fire and Life Safety Code rules on façades. Over 100 professionals from the UAE construction industry attended the event. Following this, Technal will be reaching out to more companies to ensure compliance to UAE Fire and Life Safety Code. Technal also recently launched a new non-fire-rated curtain wall assembly which has successfully undergone the EN-1364-4 fire resistance test required in the UAE. EN-1364-4 is proven to be the most stringent test compared to other standards used currently. Fully tested up to REI 180 minutes, Technal’s curtain wall assembly design extends the rating of the compartment floor to the exterior curtain wall assembly up to three hours. Technal ME to create awareness about fire safety regulations hvac Leminar Air Condition- ing Industries has success- fully tested and certified its Flame Safe Non-Coated Duct Systems for fire perfor- mance at Applus+ Labora- tory in Spain. Flame Safe, which is de- signed and developed entirely by Leminar, is a cost-effective alternative to coated type duct system. It was introduced to the mar- ket in the early part of 2016, making Leminar the only manufacturer in the Middle East to produce both coated as well as non-coated type fire rated ducts within the same facility. The recent test results have confirmed the product’s strict compliance with the technical specifications re- quired by British Standard 476 part 24 (ISO 6944) that relates to a ductwork’s abil- ity to resist the spread of fire. Flame Safe meets the stability, integrity, and insu- lation criteria set forth under this framework. The results also validate Flame Safe’s superior quality Leminar Flame Safe successfully tested in Spain and Leminar’s credible man- ufacturing practices, said the company statement. Dipak Bhadra, general manager, Leminar Air Conditioning Industries, said: “Integrity is an important value at Lemi- nar. From our early days, we have voluntarily opted to subject all our products to rigorous testing in European countries. Testing helps to in- crease the product’s reliabil- ity by detecting latent defects, improves its quality and en- sures any post-sale incidents. We believe it is one of the best ways to make sure we offer only the highest quality products to our customers.” Testing was conducted for both Type A (Fire out- side) & Type B (Fire inside) un-insulated and insulated ducts suitable for smoke, ventilation, car park extract, pressurisation systems, and commercial kitchen extract systems. In addition to this testing, Leminar has also obtained certification and third-party listing with Exo- va Warringtonfire, UK for Flame Safe.

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// construction business news me // January 2018 64 // Editor's pick China’s construction and investment activity in the infrastructure sectors will decelerate as Beijing attempts to tackle the high levels of local-government debt Hit the brakes Growth in China's construction industry will continue to slow down between 2018 and 2022 as the government undertakes numer- ous reforms aimed at addressing overcapacity within the sector and high levels of local-government and state-owned enterprise (SOE) debt, such as winding down expansionary capital investments and revising large infrastructure projects. According to the new report by BMI Research, it is suggested that the pace of these and other economic reforms will accelerate after President Xi Jin- ping further consolidated his power during the National Party Congress in October 2017. Overall, growth in China's construction and infrastruc- ture industry will also decelerate as Beijing's development priorities under the present 13 Five-Year Plan continue to shift away from large-scale initia- tives and toward locally focused and service-oriented projects. Taking into account more-recent data from the National Bureau of Statistics, the report has downgraded the forecast for China's construction in- dustry, and now expect real growth to average 4.7% annually between 2018 and 2022. Ongoing economic reforms initiated by the government, largely with the goal of deleveraging the fi- nancial sector, will lead to a slowdown in construction investment. The central government's attempts to improve transparency of local-gov- ernment debt will see the former take control of opaque financing vehicles that have become commonplace in China's construction and infrastructure sectors. This will weigh on investment activity, particularly in the real estate segment and for projects, without clearly apparent and tangible econom- ic or financial benefits. In this vein, the central government in November 2017 suspended two metro projects in Inner Mongolia after the National Development and Reform Commission said it would more closely scrutinise the proposed infrastructure investments. The impact of these re- forms on construction and investment activity are reflected in slowing steel demand and continuing capacity cuts on steel production. The report stated that while the Chinese government will continue to provide substantial support for infra- structure development, the scope of infrastructure investments over the next five years will be smaller in scale than in earlier periods. Upcoming projects will be more local in focus and involve greater participation from private inves- tors, representing a shift away from the high-value, expansive projects that have epitomised China's infrastructure sector over the previous decade. While this shift is tied to overall efforts of reducing local-government debt, it is also motivated by China's still-sizeable need for quality-of-life focused investments, such as social in- frastructure, urban transport improve- ments, and water and trash utilities. This shift is evident in China's public private partnership (PPP) pipeline, where more than 55% of projects fall under Municipal Engineering, Envi- ronmental Protection, Urban Develop- ment, or Social Infrastructure. Similarly, the provinces in the PPP initiative receiving the most attention are inland, relatively underdeveloped provinces such as Guizhou, Xinjiang, and Mongolia.

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// construction business news me // January 2018 66 // Save the date Mark your calendar Save the date Safety Design in Buildings Conference Dubai, UAE The Safety Design in Buildings conference is a GCC-wide initiative to debate safety standards and practices in the built environ- ment. Experts are invited to share insights through presentations and panel discus- sions for an improved protection of people and assets in the Gulf. The campaign is open to contributions by regulators, construction and safety professionals, and periodically facilitates conference platforms in all GCC capitals and major cities. The campaign continues to build a pool of local and international experts who commit to unbiased presenting and consulting to their best knowledge and ability. All experts are dedicated to continuous professional education and to striving for highest quality standards in their respective disciplines. Intersec Dubai, UAE Intersec is the leading trade fair for profes- sionals in the safety, security, and fire pro- tection industries. For the last 19 years, it’s been the most important business platform in the MENA region. The 2017 edition saw more than 1,300 exhibitors gathering at Dubai World Trade Centre, and more than 32,000 visitors passed through the event’s doors. At the 2018 edition, one of the major topics of the event will be safety design in buildings, and people will be able to visit the third edition of the smart home pavilion. The exhibition’s job and career section will be even larger, as will the live demonstration area for drones. There are set to be even more exhibitors than the last event, showcasing the latest developments in security technology. Intermat Paris, France Intermat, the international exhibition for construction and infrastructure, will take place from April 23-28, 2018, at Paris Nord Villepinte, France. The exhibition will host 183,000 visitors and 1,500 exhibitors presenting an offer of equipment, materi- als and solutions for civil engineering and structural building works. Intermat has adjusted its sector organisation to respond to visitor expectations (more clearly specified sectors, a more efficient visiting experience and greater emphasis on inno- vation), arranging the event around four activity sectors for optimal clarity. One special feature makes this event unique - an outside demonstration area. Visitors can see the exhibitors' machines perform in a gigantic open-air construction area. FM expo saudi Jeddah, Saudi Arabia FM Expo Saudi is the country’s new exhibition and congress dedicated to the facilities management industry. With major new infrastructure projects, higher rates of outsourcing, coupled with the ambitious regulatory plans, Saudi Arabia’s FM services market is quickly evolving. As awareness levels, particu- larly in the government sector, increases, the FM industry in Saudi Arabia is pro- jected to grow at a staggering rate. Fea- turing a high-level congress programme, and co-located with Saudi Clean Expo, FM Expo Saudi will bring together key decision makers to network and will of- fer all those involved fantastic business development opportunities. January January April January 21-23 21-23 23-28 14-16

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