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THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS ACHIEVEMENT Breaking Records in conversation with Samir Masoud, Supply Chain Director of Fine Hygienic Holding ENERGY Diversifying UAE’s Energy Mix SUPPLY CHAIN Redefining Destination Scale Project Management J A N U A R Y 2 0 2 4 | C B N M E . C O M Here is the latest round-up of the latest projects being launched in the Middle East REAL ESTATE SKYWARD SURGE
COVER STORY 10 ANALYSIS INNOVATIVE WORKSPACES RESHAPING THE MIDDLE EAST Insights from Turner & Townsend’s Global Corporate Occupier Fit-out Report 32 SUSTAINABILITY PRASOON DESIGN STUDIO AND ZEPTH Sustainable construction is a union of 3M’s:Materials, methodology, and models 36 ACHIEVEMENT BREAKING RECORDS In conversation with Samir Masoud, Supply Chain Director of Fine Hygienic Holding 40 MASTERPLAN ATKINSRÉALIS New Murabba appointed AtkinsRéalis To Masterplan the world’s largest modern downtown in Riyadh, Saudi Arabia 42 ENERGY DIVERSIFYING UAE’S ENERGY MIX Kasun Illankoon speakers to Andy Biffen, Asset Development Executive Director, EWEC, about their latest projects, key initiatives to promote renewable energy, the importance of collaboration, and so much more 46 TALKING POINT WAKECAP Technology trends forecast GCC tech trends in 2024 according to WakeCap 60 SUPPLY CHAIN REDEFINING DESTINATION SCALE PROJECT MANAGEMENT Authored by Marco Fahd, Group Chairman and CEO, Versatile Internation Real Estate Skyward Surge 12 IN THIS ISSUE CBNME 10 46 CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 3
EDITOR’S NOTE CBNME A s we enter the new year we saw a plethora of projects being announced in the Middle East, mainly in Saudi Arabia and the UAE. It seems there is a sudden resurgence of new property developers that have either entered the market or have decided it's time to showcase what they are truly capable of rather than hiding in plain sight. The Middle East, particularly the GCC region, thrives themselves in moving forward and not looking back. The theme for the cover story reflects that as we look at some of the newest developments coming up in the region along with some of the mainstay players in the real estate industry. Construction Business News ME is set to host the Pillars of the Real Estate Awards 2024 and the competition is intense. As many developers are looking to advance their credentials and show why they can compete with some of the best. I wish them the best of luck and know that the prestige of winning an award at this event will set the tone for the rest of the year. CEO Wissam Younane wissam@bncpublishing.net DIRECTOR Rabih Najm rabih@bncpublishing.net GROUP PUBLISHING DIRECTOR Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 MANAGING EDITOR Kasun Illankoon kasun@bncpublishing.net EDITOR Vibha Mehta vibha@bncpublishing.net EDITORIAL DESIGN Christian Harb MARKETING MANAGER Aaron Joshua Sinanbam aj@bncpublishing.net VIDEOGRAPHER Alexander Bungas GRAPHIC DESIGNER Rizaldi Febrian Keep up to date with all the latest news, features and much more on our website and social media platforms CBNME.COM Kasun Illankoon Managing Editor kasun@bncpublishing.net SUBSCRIBE subscriptions@bncpublishing.net For all commercial enquiries, contact jo@bncpublishing.net T +971 50 440 2706 All rights reserved © 2022. 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 PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 CBNME @CBNME CONSTRUCTION BUSINESS NEWS ME MOVING FORWARD AND NOT LOOKING BACK 4 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
NEW IVECO S-WAY: HIGH TECHNOLOGY AND EFFICIENCY FOR ON-ROAD MISSIONS The new IVECO S-WAY, with a completely redesigned and reinforced cab, offers a wide choice of Euro III/V diesel engines, a delivering class-leading power from 360 HP to 560 HP Euro III / 570 HP Euro V and superior fuel-saving devices, such as anti-idling feature, Ecoswitch, Ecoroll and Smart Alternator. 12-speed HI-TRONIX automated transmission with the most advanced technology in its category, electronic clutch and best-in-class torque-to-weight ratio. NEW IVECO T-WAY: HIGH PRODUCTIVITY AND SAFETY ON OFF-ROAD TERRAINS With a complete line-up of AWD and PWD versions and the the 16-speed HI-TRONIX automated gearbox, the IVECO T-WAY features a host of functionalities such as Rocking Mode, Off-road Mode, Creeping Mode and 4 reverse gears to tackle with ease the toughest off-road conditions. The new architecture of the EBS system, combined with disc brakes on all wheels, greatly improves the vehicle’s performance and the driver’s safety in the most demanding applications. DRIVE THE NEW WAY
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CBNME ANALYSIS INNOVATIVE WORKSPACES RESHAPING THE MIDDLE EAST INSIGHTS FROM TURNER & TOWNSEND’S GLOBAL CORPORATE OCCUPIER FIT-OUT REPORT CREATING WORKSPACES FOR A FAST-CHANGING WORLD: TURNER & TOWNSEND UNVEILS ITS GLOBAL CORPORATE OCCUPIER FIT-OUT REPORT, OFFERING A DEEP DIVE INTO REGIONAL INNOVATIONS, CORPORATE FIT-OUT TRENDS, AND COST GRANULARITY FOR KEY OCCUPIER MARKETS, INCLUDING DUBAI. 10 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
INNOVATIVE WORKSPACES RESHAPING THE MIDDLE EAST T urner & Townsend, a leading global professional services company in the construction industry, has released its latest Global Corporate Occupier Fit-Out Report, offering a comprehensive analysis of fit-out costs across forty-two cities worldwide. The report highlights the diverse cost landscapes of the sector across global hubs, with an average high specification cost for fit-out expenses estimated in Dubai at $2,548 per m2 and Riyadh at $2,650 per m2. European cities, including Zurich, London, and Edinburgh, grapple with cost challenges influenced by supply chain disruptions, further compounded by recent global conflicts. Despite the volatility of Brexit, London continues as a significant hub for high-end fit- out activities, especially within the financial sector. In the Asia-Pacific region, increased demand for high-specification fit- outs stems from the concentration of global organisations in pivotal markets such as Tokyo, Sydney, and Singapore. These evolving demand patterns and cost dynamics underscore the changing nature of work structures, leading to adaptable decision-making cycles and shorter lease durations every five to eight years. The report identifies a noticeable shift in investment patterns, aligning with employee preferences that favour collaborative spaces and home-like amenities. Furthermore, in pursuit of environmental, social, and governance (ESG) goals, tenants are expected to opt for spaces directly from property owners to minimise negative environmental impacts linked to generic CAT A fit-outs. In the Middle East, a region known for its ambition and growth, the corporate occupier fit-out market is experiencing a significant surge in activity. The growing demand for innovative, sustainable workspace solutions is reshaping business operations here and elevating work environments. The region is now emerging as a leader in redefining contemporary workplaces, emphasising innovation and adaptability, with recent forecasts from Globest. com predicting a shift in office design from 70 percent individual workstations and 30 percent collaborative spaces, to 70 percent collaborative spaces by 2025. The UAE’s fit-out industry stands out as one of the GCC’s fastest-growing sectors. With the UAE’s commercial interior fit-out market valued at $1,486.21 million in 2021, and with an expected 9.31 percent growth from 2023 to 2027 indicating a thriving market landscape. Amidst this rapid growth, there are collaborations, partnerships, and investments driving innovation to meet evolving business demands. Companies across industries are increasingly investing in fit-out solutions that are in line with their brand identity and operational needs, fostering conducive workspaces that prioritise productivity, collaboration, and employee well-being. This burgeoning trend has propelled regional design and construction firms to innovate, offering innovative solutions blending aesthetics with functionality. From sleek, modern designs to environmentally conscious spaces, the focus remains on crafting work environments reflecting corporate ethos while optimising space and resources. Furthermore, technology’s transformative impact on workspace design cannot be overlooked. Integrating smart technologies, IoT- enabled systems, and sustainable practices has become characteristic of corporate fit-outs in the Middle East, enabling businesses to optimise energy usage and create agile work environments John Grant, Associate Director and Corporate Real Estate Services Lead at Turner & Townsend in Dubai, notes the Middle East’s significant shift in its corporate landscape, following the COVID-19 pandemic – the initial catalyst which prompted a world-wide re-evaluation of office projects. As remote work became the norm, cities like Dubai, Abu Dhabi, Riyadh, and Doha experienced a decline in office space demand, causing a temporary slowdown in the corporate occupier fit-out sector. However, with relaxed social distancing regulations, office fit-out projects regained momentum, with a clear, new-found demand for hybrid working environments and flexible, technology-integrated, employee- centric designs. “THE MIDDLE EAST CORPORATE OCCUPIER FIT- OUT MARKET EMBODIES THE CONVERGENCE OF INNOVATION AND FUNCTIONALITY.” “OUR FOCUS IS TO WORK IN PARTNERSHIP WITH OUR CLIENTS TO CRAFT TAILORED ENVIRONMENTS THAT SEAMLESSLY ALIGN WITH THEIR EVOLVING NEEDS AND ASPIRATIONS.” CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 11
CBNME COVER The theme for the cover story is a look at some of the newest developments coming up in the region along with some of the mainstay players in the real estate industry. The residential luxury market is set for a new boom as developers raise the standards of luxury living in Dubai and get in investors and buyers. REAL ESTATE SKYWARD SURGE 12 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
REVOLUTIONIZING CONSTRUCTION TECHNOLOGIES FACEBOOK.COM/CBNME @CBNME CONSTRUCTION BUSINESS NEWS ME WWW.CBNME.COM Recognising the achievements of the real estate giants in the Middle East! | JANUARY 31ST | Venue: TBC Gold Partner FOR NOMINATIONS VIBHA MEHTA +971 58 6314145 vibha@bncpublishing.net FOR SPONSORSHIP OPPORTUNITIES JOAQUIM D’COSTA +971 50 440 2706 jo@bncpublishing.net
CBNME COVER ALPHABETA PROPERTIES REDEFINES LUXURY LIVING IN DUBAI’S REAL ESTATE LANDSCAPE 14 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
REAL ESTATE A lphabeta Properties, a visionary force in the Emirate’s expanding real estate market. The luxury real estate developer made its grand entrance into the industry back in 2016 with a contemporary and aesthetically driven approach to property development. Founded by esteemed Emirati entrepreneur, Abdulla Al Shaibani, Alphabeta Properties has been reshaping the skyline with a portfolio that mirrors innovation, luxury, and a commitment to client satisfaction. Founded on the principles of innovation and luxury, Alphabeta Properties represents the evolution of Dubai’s real estate market. Under the leadership of Abdulla Al Shaibani, the company envisions not just buildings but vibrant communities crafted with architectural brilliance, offering a seamless blend of opulence and functionality. Alphabeta Properties caters to the dynamic and modern lifestyles of the new generation, placing a strong emphasis on delivering innovative concepts across all its projects. The company’s portfolio includes iconic developments that showcase its dedication to architectural excellence and premium living experiences. Key Projects: > Alphabeta T-10 (Al Barsha 1): A modern compound of 10 townhouses, European in style, offering spacious living at 5000 sq ft. Situated in the heart of Al Barsha 1, it boasts proximity to the American School of Dubai, a large pool block, and 24-hour security. > Alphabeta C-6 (Al Safa 1): Often referred to as the “Spaceship,” this project comprises 6 sleek, futuristic condos in Al Safa 2. Each unit features a minimalist design with clean lines and a private pool, defining a new standard in contemporary living. > Alphabeta M-3: Known as the ‘Contemporary Glass Building,’ this commercial project offers three high-end retail shops and a private office. It has become a local landmark, boasting a super contemporary look and an excellent location, attracting a young and hip crowd. > Alphabeta G-4: Exclusive 4-bedroom luxury villas for sale in the new land development project in Nad Al Sheba Gardens. These standalone private villas, designed by European architects, emphasize functionality, minimalist design, and a premium quality standard of living. Founder of Alphabeta Properties, Abdulla Al Shaibani said, “Alphabeta Properties is not just about building homes; it’s about crafting lifestyles. Our commitment to excellence, innovation, and client satisfaction sets us apart in the competitive real estate landscape of Dubai. We are excited to introduce Alphabeta Properties to the world, and we look forward to setting new benchmarks for luxury living in Dubai. With our current projects being a resounding success, Alphabeta Properties is thrilled to announce exciting new projects on the horizon.” With an unwavering dedication to client satisfaction and a portfolio that stands testament to innovation, Alphabeta Properties invites Dubai and the world to experience a new era of modern living. CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 15
CBNME COVER D ubai, United Arab Emirates, 8 December 2023: UAE-based DAMAC Properties, a leading regional and global real estate developer is delighted to unveil a collection of urban resort villas in the sought-after community of DAMAC Hills. Utopia is a limited selection of just 27 contemporary villas, inspired by the pleasures of a resort holiday that never has to end. Each of the spacious homes enjoys indulgent signature features, from private infinity pools to home cinemas, in-villa spas, basement entertainment areas, underground parking with a turntable, and more. Available in three typologies ranging from five to seven bedrooms, the villas have been designed to maximise natural light, sweeping golf course or lake views as well as privacy. Meanwhile, the clean lines of the villas are complemented by lush, indigenous greenery, cool metals and rich marbles. These exclusive villas will also offer outstanding views of an internationally-acclaimed golf course and private internal lush green courtyards. “The luxury real estate market is undoubtedly one of the most competitive, especially in Dubai,” said Mohammed Tahaineh, General Manager of Projects. “Having the best DAMAC PROPERTIES UNVEILS NEW URBAN RESORT LIVING IN DAMAC HILLS > Utopia is a new linear cluster of contemporary, luxurious villas in DAMAC Hills > Five to seven-bedroom villas with private infinity pools, basement entertainment areas and more, inspired by tranquil, lifestyle-enriched resorts 16 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
DAMAC PROPERTIES UNVEILS NEW URBAN RESORT LIVING IN DAMAC HILLS quality finishes is no longer enough, so we are proud to push the envelope with Utopia. These urban resort-style villas elevate the living experience, providing plenty of distinct spaces to entertain, gather or simply relax.”In addition, to those available within their home, Utopia residents will also have the chance to enjoy having a range of amenities available at the DAMAC Hills community. Malibu Bay, the wave pool with spirited beach-like vibes, is made for fun-lovers, while golf lovers can get into the swing of things at Trump International Golf Club, Dubai, equestrians can head to the stables, animal lovers have a petting farm and a dog park and the athletically-inclined have their choice of facilities for tennis, volleyball, cricket, football and more. The use of locally-sourced materials, and careful design to create cool corridors between villas, Utopia represents yet another in a long line of DAMAC’s steps towards a more sustainable future. The organisation has been taking longer strides in its commitment to supporting the UAE’s Net Zero ambitions. DAMAC extended support to the 25th WETEX organised by DEWA as a diamond sponsor this year. Additionally, the developer recently announced its Environmental, Social, and Governance (ESG) Risk Rating of 18.3 points, as assessed by Sustainalytics, a globally recognised leader in ESG research, ratings, and data. DAMAC’s third and upcoming master community development, DAMAC Lagoons was recently pre-certified the LEED platinum in the Cities and Communities category, making it one of the first communities in the UAE to be so. According to research, LEED-certified buildings command the highest rents internationally while lease-up rates typically range from average to 20% above average; vacancy rates for green buildings are an estimated 4% lower than non-green properties. DAMAC Lagoons anticipates reaping benefits at scale by certifying to LEED for Cities and Communities. Created more than 30 years ago by the US Green Building Council, the LEED (Leadership in Energy and Environmental Design) standard is the most widely used green building rating system in the world. About DAMAC DAMAC Properties has been at the forefront of the Middle East’s luxury real estate market since 2002, delivering award-winning residential, commercial and leisure properties across the region, including the UAE, Saudi Arabia, Qatar, Jordan, Lebanon, Iraq, the Maldives, Canada, the United States, as well as the United Kingdom. Since then, the company has delivered approximately 46,000 homes. Joining forces with some of the world’s most eminent fashion and lifestyle brands, DAMAC has brought new and exciting living concepts to the market in collaborations that include luxury homes in association with Versace, Cavalli, Vincent Faudemer, de GRISOGONO, Zuhair Murad, Paramount Hotels & Resorts, Rotana and Radisson Hotel Group. With a consistent vision, and strong momentum, DAMAC Properties is building the next generation of Middle Eastern luxury living. CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 17
CBNME COVER THE LUXE DEVELOPERS THE LUXURY REAL ESTATE MARKET A s demand for luxury real estate increases in line with the ever- increasing number of High-Net- Worth Individuals relocating to the UAE, developers are increasingly looking to push the boundaries of opulent living to ensure properties meet the specific needs of their affluent customers. Here, Manav Bhatia, Marketing Director of The Luxe Developers, outlines how the company is redefining the real estate market in Ras Al Khaimah with the Oceano development, where they have ensured a focus on privacy and deploying unique elements to each apartment. The ascendancy of luxury real estate in Ras Al Khaimah, which is attracting a new demographic of real estate to the emirate, can be attributed to a range of factors. Economic stability, strategic infrastructure development, a vibrant tourism sector, global connectivity, and several government initiatives have collectively created an environment conducive to the growth of the luxury real estate sector. This has been further underscored by the news the UAE is set to welcome more than 4,500 High Net Worth Individuals (HNWIs) this year, as unveiled by the Henley & Partners Private Wealth Migration Report, the global authority on monitoring private wealth and investment migration trends. At the forefront of these individuals’ priorities upon relocation is the need for somewhere luxurious to live. This surge in demand for upscale properties is reshaping the market, fostering an ever-growing appetite for exclusive and high-end real estate options. The embodiment of this is Oceano, a groundbreaking project that epitomises our vision for the future of luxury residential living in Ras Al Khaimah and the UAE. SIDDHARTA BANERJI, Managing Director and Co-owner of The Luxe Developers SHUBAM AGGARWALI, Chairman and Co-owner of The Luxe Developers 18 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
THE LUXURY REAL ESTATE MARKET At The Luxe Developers, our unwavering commitment revolves around delivering unparalleled experiences that transcend current market offerings. Breaking barriers and consistently surpassing expectations has been our hallmark. Every project The Luxe Developers undertake aims to challenge and push the boundaries of architecture and design. Working with some of the most esteemed names in the industry, we redefine what was thought possible in functional architecture. For example, as standard in all our designer properties, we have copper finishes on all skirting boards, and the walls have smooth, built-in alcoves, all contributing to each apartment’s unique and exclusive feel. We have meticulously crafted Oceano’s unique design in collaboration with the esteemed Dewan Architects + Engineers, leaders in the Middle East’s architectural and engineering design sector. Featuring free-flowing glass facades and minimalist frames, with each floor rotated on different planes, Oceano ensures every resident enjoys a distinctive and uninterrupted panoramic view of the Arabian Gulf. As part of our unique luxury offering, we have taken things a step further and designed our property to cater to the one prominent need amongst our UHNW buyers: privacy. Oceano’s design aesthetic and unique location ensures the property has complete privacy, even on the private terrace or balcony. Residents also enjoy a secluded shoreline and private beach, providing relaxation in a safe and secure environment away from prying eyes. We aim to create a five- star luxury getaway just an elevator ride away. This attention to detail from a design perspective, combined with world- class amenities, has resonated incredibly well with regional and international investors and is reflected in the fact that only a few select units remain. Several factors must be considered for those looking to invest in ultimate luxury living. These are not merely ‘nice-to-haves’ but a prerequisite of the buyer. These include everything from unobscured waterfront views to amenities like those found in five-star hotels and even a jetty for residents to anchor their private yachts. As such, Oceano, a twin tower project, is not just reimagining opulence but revolutionising it. With an exterior adorned with elegant asymmetric lines and a mesmerising entrance, Oceano has been created to offer another dimension for luxury living in Ras Al Khaimah. Designed for an upscale waterfront living lifestyle, Oceano comprises residential and commercial units boasting panoramic views of the sea, a private beach, and a jetty. The development spans 79,000 sqm with 18 floors and offers 206 units, including 1, 2, 3, and 4-bedroom residences, penthouses, sky villas, and five retail units. The entrance to the development alone underscores our commitment to luxury with a 14,000 sq. ft. lobby and an indoor garden that creates a zen-like effect as soon as anyone walks in. The exclusive arrival experience at Oceano, situated on a unique corner plot on Al Marjan Island, features a ceremonial entrance with a dynamic cascading fountain and captivating landscaping. Further accentuating the development’s exclusivity is its proximity to the upcoming multi- billion-dollar integrated Wynn Resort, elevating Oceano’s status among Ras Al Khaimah and UAE real estate developments. Oceano residents also enjoy a range of exclusive benefits and amenities often found in some of the world’s most exclusive resorts, including a spa, a cigar lounge, a library, an infinity pool connecting the two towers, a gym, a yoga room, and a children’s play area. A chauffeur’s lounge is also available for drivers to enjoy and relax. Lush green gardens, a resort-style swimming pool, a dedicated children’s pool, and the aforementioned private jetty contribute to the serene and luxurious living experience. Security and concierge services ensure residents’ peace of mind. As Ras Al Khaimah continues to evolve as a global destination, its luxury real estate market is a testament to the emirate’s commitment to excellence and innovation in opulent living. CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 19
CBNME COVER SOBHA REALTY UNLOCKING PATH TO FINANCIAL PROSPERITY: WEALTH CREATION THROUGH REAL ESTATE INVESTMENTS W ith a tactical approach and strategic thinking, real estate investments can be an essential factor to building and diversifying one’s wealth. Adding real estate to the investment portfolio has been recognised as a powerful tool for its incredible potential to create wealth, representing a prime avenue for individuals to generate a passive income. However, before embarking on this journey towards wealth creation and financial prosperity, understanding the key principles and developing a systematic investment plan is quite imperative for investors to succeed. It is necessary to equip oneself with the requisite knowledge about the ins and outs, opportunities and difficulties associated with real estate investing. The first step in growing one’s wealth through real estate investments is awareness about various aspects of the market, its intricacies, risks, and benefits. Investors must acquire a thorough understanding of the different kinds of properties, rental yields, and market trends, to determine various strategic techniques and effective measures that help them achieve their financial objectives. Acquiring knowledge through seminars, books and podcasts, as well as gaining expert insights from seasoned investors are advocated in order to have a better grasp of various market nuances, trends, as well as lucrative opportunities. Having a solid knowledge base enables wise and informed investment decisions in real estate. Ravi Menon, Co-Chairman of Sobha Realty said, “Investors must have clearly defined financial objectives and a well-thought-out investing strategy that takes into account elements such as the required cash flow, time horizon, risk tolerance and anticipated return on investment. In the real estate landscape, investors have the opportunities to build long-term wealth through rental income and short-term gains from property flipping.” While investing in rental real estate, location of the property is a crucial factor to consider since it has a significant influence on property value and rental returns. Properties in the best and most coveted locales increase demand among buyers, which makes it imperative for investors to place a high priority on location if they are to build wealth through rental earnings. Investors must conduct in-depth research on suitable and potential investment locations, while considering variables including job growth, infrastructure development, population trends and amenities. It is ideal to choose properties in locations that are desirable to potential renters. Furthermore, a detailed financial analysis of properties considering factors, including cost of the purchase, prospective rental revenue, operating costs, maintenance costs and property taxes, is also important to analyse the overall expenses. 20 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
UNLOCKING PATH TO FINANCIAL PROSPERITY: WEALTH CREATION THROUGH REAL ESTATE INVESTMENTS Investors can evaluate the property’s potential for cash flow and see if it fits their investing objectives and strategies. Joint ownership or fractional ownership may be beneficial in this situation. Fractional ownership refers to splitting the cost of a property between two or more individuals or shareholders, where each will only be purchasing a portion or percentage of the entire asset. This investment provides numerous benefits for owners, including usage rights and income sharing. By lessening the burden of regular upkeep and maintenance expenses, this is considered a significant opportunity to diversify investments and build long-term equity. Following the conclusion of the transfer, the Land Department will provide a title deed with the percentage share of each investor or shareholder specified. There are various financing avenues available for rental property investments. Traditional options, such as mortgage loans, private lenders or partnerships are worth considering and exploring. Investors can also assess the interest rates, terms, and related expenses to choose the most viable and favourable option to invest. Additionally, it is also necessary to keep in mind that a high credit score as well as a proven track record of financial responsibility will maximise investors’ borrowing potential. One way to increase returns and alleviate the risks associated with real estate investing is to diversify the real estate portfolio. Investors can consider spreading their investments across different asset classes, including residential, commercial, and mixed-use buildings to reduce risk exposure. This enables investors to reduce the impact of market changes and build an investment portfolio that is more stable and balanced. Moreover, determining whether passive or active investing suits better, may be done by evaluating one’s skills, time availability and level of intended involvement. Active investment entails management tasks like tenant management, property selection and renovations, while investing passively refers to assigning experts, such as real estate investment trusts (REITs) or real estate crowdfunding sites to manage one’s investments. While investing in real estate can result in considerable benefits, there are also challenges involved. Investors have to consider and analyse in advance the potential risks and threats, such as market fluctuations, regulatory changes and unanticipated expenses to overcome these barriers. Keeping a cash reserve set aside for unforeseen events, inspecting the property frequently and putting risk management strategies in place are worth considering. Safeguarding money and ensuring long-term wealth preservation necessitates being proactive and prepared. Real estate investing serves as a prime avenue to build wealth. However, it requires a thorough comprehension of market dynamics, hard research, and strategic decision-making to ensure success. Aspiring real estate investors can overcome obstacles and realise their potential for financial success by utilising knowledge, defining specific objectives, and implementing a well-defined investment strategy. Keep in mind that the essential components for creating a successful real estate investing portfolio are perseverance, patience, and continuous learning. RAVI MENON, Co-Chairman of Sobha Realty CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 21
CBNME COVER SAMANA DEVELOPERS DELIVERS DH100 MILLION SAMANA GOLF AVENUE PROJECT IN DUBAI STUDIO CITY T he developer achieves 600% growth in 2023, consolidating its position among top 10 fastest- growing developers in Dubai Samana Developers, the fastest-growing real estate developer in Dubai, celebrated a momentous occasion on December 7, 2023, with the official handover ceremony of the Dh100 million Samana Golf Avenue project in Dubai Studio City. The event, graced by the presence of Mr Marwan Bin Ghalita, CEO of the Real Estate Regulatory Agency (RERA), marked the successful completion and handover of this resort-style residential endeavour. The handover of this wellness-themed residential project, in alignment with Dubai’s 2040 New Urban Masterplan, stands as a testament to Samana Developers’ commitment to creating healthy, sustainable, and vibrant communities. 22 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
SAMANA DEVELOPERS DELIVERS DH100 MILLION SAMANA GOLF AVENUE PROJECT IN DUBAI STUDIO CITY Samana Developers proudly announced an extraordinary feat, achieving a staggering 600% growth and launching 12 projects as part of their ambitious 2023 roadmap. This accomplishment solidifies Samana Developers’ standing among Dubai’s top 10 fastest-growing developers, a testament to their commitment to excellence and innovation in the real estate sector. Imran Farooq, CEO of Samana Developers, remarked, “Reaching an impressive 600% growth in 2023 positions us among the top 10 private developers in Dubai. This much of growth could be possible due to our commitment to building a lifestyle which focuses on the needs of end-users and their families. The outside-the-box design concepts, affordable price tag, and luxurious living experiences have enabled us to grow our property portfolio and help us launch projects on time.” “In the dynamic and competitive landscape of Dubai’s real estate market, Samana Developers has earned its place among the fastest- growing developers. This recognition is a reflection of the company’s unwavering dedication to delivering quality property assets, meeting market demands, and surpassing customer expectations.” Imran said. Against the backdrop of the global Covid-19 pandemic, Samana Golf Avenue emerged as a visionary response, embodying a unique resort-style theme that prioritizes the importance of a healthy lifestyle. The project’s design was inspired by the changing needs of residents in a post-pandemic world, with a focus on creating spaces that promote wellness and overall well-being. Pioneering and Delivering Private Pool Concept For the first time in Dubai, Samana Developers not only pioneered the concept of built-in private pools in residential buildings, but Golf Avenue project marks successfully delivering it, which further establishes Samana’s position in delivering innovation in design. The commitment to innovation and thoughtful design was formally recognized in 2019 when Samana Golf Avenue was honoured with the prestigious Innovation in Design Award. This accolade underscores the project’s excellence in integrating modern amenities, environmental considerations, and a commitment to fostering a thriving community. Imran Farooq, CEO of Samana Developers, expressed his gratitude and excitement about reaching this significant milestone. “The completion and handover of Samana Golf Avenue mark a testament to our dedication to creating exceptional living spaces. In a rapidly evolving real estate landscape, Samana Developers is proud to contribute positively to Dubai’s growth and redefine the standards of modern living,” Imran Farooq, CEO of Samana Developers, added. With the successful handover of Samana Golf Avenue, Samana Developers continues to set new benchmarks in the real estate industry. The company remains steadfast in its commitment to delivering innovative projects that resonate with the evolving needs of residents and contribute to Dubai’s vision of a sustainable and vibrant future. CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 23
CBNME COVER SANKARI PROPERTIES W ith the introduction of Sankari Properties, a transformative era for UAE’s premium real estate offerings is set in motion. Perfectly aligned with the nation’s strategy for economic diversification and growth, the developer seeks to make significant contributions to the established legacy and the promising future of the sector. The Aspiration In the dynamic real estate environment of UAE, characterized by top-notch infrastructure and a robust regulatory framework, Sankari Properties aims to push the possibilities of real estate. Acknowledging the vital influence of real estate and hospitality in enhancing Dubai’s global standing, the company is dedicated to creating spaces and experiences that embody the city’s dynamic culture and progressive ethos. Leadership & Legacy Leveraging a rich business heritage and a history of leading lifestyle innovations, Sankari Properties epitomizes a balance of tradition, excellence, and contribution, carrying the revered Sankari family name and adhering to its enduring values of perfection and contribution. Under the leadership of Chairman Mohammed Sankari, a distinguished Emirati businessman, whose entrepreneurial journey has been marked by significant strides within a thriving family enterprise, Sankari LAUNCHES TO MERGE OPULENT REAL ESTATE WITH ENHANCED LIVING EXPERIENCES 24 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
SANKARI PROPERTIES LAUNCHES TO MERGE OPULENT REAL ESTATE WITH ENHANCED LIVING EXPERIENCES Properties’ vision transcends conventional business achievements. Mohammed Sankari, embodying the company’s ethos, states: “At Sankari Properties, we view the UAE as a canvas for architectural storytelling. Here, high-end living blends grandeur with artistic creativity, self- fulfilment, and a relentless pursuit of perfection. We aspire to craft masterpieces that will instil pride today and in future generations as part of our commitment to giving back to a nation that has generously given us so much.” Unveiling UAE’s Most Exemplary Residential Property Actioning its ethos, Sankari Properties proudly reveals its flagship development in Marasi Marina, Business Bay, poised to become a new pinnacle in premium living. Encompassing twin residential towers, the project will be masterfully crafted by Foster & Partners, featuring exquisite interior design by Portia Fox. In its sophisticated design, each tower offers exclusive 3, 4, and 5-bedroom apartments, starting at 6,500 sq.ft., each occupying an entire floor to ensure maximum privacy and security. Nestled in a unique standalone plot with uninterrupted access and views of Marasi Marina and Downtown Dubai, the towers’ architectural design maximizes stunning views of Dubai Creek and the city skyline. The Point of Differentiation is Meeting the Needs for Balanced Lifestyle Sankari Properties is redefining elevated living with a groundbreaking project that surpasses traditional limits of luxury living. Focused on improving the everyday lifestyle of residents, this new development embodies a commitment to a life well-lived and optimized. It offers holistic spaces, thoughtfully designed to foster a balanced lifestyle. At its core, the project features expansive terraces that intelligently mirror the living spaces, offering open-air freedom and outdoor living with optimal shading and airflow year-round. Residents will be part of an ecosystem designed for thriving, where the quest for balance and lifestyle enhancement is intricately integrated into the very essence of this sanctuary. The necessity for commuting and rushed routines will fade, with everything essential for a sophisticated lifestyle conveniently available at home. Previewing what lies ahead, residents will enjoy access to unmatched amenities. Each detail is meticulously crafted to promote a wellness- oriented lifestyle, from private pools on each terrace to a cutting-edge gym and spa. Additionally, Sankari Properties is poised to enter a significant partnership with an international luxury hospitality provider, ensuring that services and amenities meet the highest global standards of luxury living. Targeted for completion in Q4 2027, this project stands as a symbol of living life in its most opulent form. The Foresight The flagship residence marks the beginning of several forthcoming projects from Sankari Properties, each distinct in its purpose and contribution to the nation. The company’s pipeline features a variety of developments located in key areas such as Marasi Business Bay, Palm Jumeirah, and other strategic plots within emerging masterplan developments. MOHAMMED SANKARI, Chairman of Sankari Properties CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 25
T his month, Teraciel Properties launched The Imperial in Hills Views, Dubai Hills, a one-of-a-kind mansion for the most discerning clientele. Built to transcend fashion and trends, The Imperial marks the latest development by Teraciel Properties, a boutique luxury real estate developer positioned to create landmark properties and communities that cater to the lifestyles of the most discerning clients, through couture real estate. The launch of Teraciel Properties comes after much demand for world- class infrastructure projects that enhance the overall appeal and values of real estate in the UAE. COUTURE REAL ESTATE TERACIEL PROPERTIES ANNOUNCES THE LAUNCH OF THE IMPERIAL, A STUNNING MANSION IN DUBAI HILLS CBNME COVER 26 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
STAND FIRST: COUTURE REAL ESTATE: TERACIEL PROPERTIES ANNOUNCES THE LAUNCH OF THE IMPERIAL, A STUNNING MANSION IN DUBAI HILLS As a bespoke and customer-centric developer, where artistry combines with thoughtful function and innovation, Teraciel Properties creates compelling luxury builds. Established under Teraciel Group, which was born in 1985, Teraciel Properties bolsters the multidisciplinary group offering, which includes Teraciel Engineering & Contracting the civil division, La Sorogeeka Interiors the interior division and ANCA the bespoke furniture division, all of which are showcased through the launch of The Imperial. Teraciel Group has an office team of over 150 staff and an additional 700 artisans and craftsmen, united through its work ethic. Today, with its own in-house execution and manufacturing team, Teraciel Properties brings forty years of experience in luxury to the forefront of the debut project, The Imperial. Distinctly identified by its facade wrapped in molded limestone, The Imperial features a French colonial design mix unique to the architectural landscape of the community. Furthermore, the property stands out for its groundbreaking achievement, securing the record for the highest price per square foot in Dubai Hills Views, which underscores its exceptional value and desirability in the real estate market and sets the benchmark of quality and finishing for super-prime- 100m+ mansions. The grand facade sets the scene for The Imperial’s interior of six bedrooms, a pool, BBQ areas, three bars, a cigar room, a roof entertainment area, a spa, sauna, gym and massage room, which have been painstakingly designed to blend beauty and function alongside the latest amenities and cutting-edge technology. Intricate semi-precious mother-of-pearl inlays at the entrance, master bedroom and bathroom deliver something inimitable in this market, whilst bespoke furniture by ANCA accents the overall aesthetic with the highest-end veneers, semi-precious UJJWAL GOEL, Director of Teraciel Group CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 27
stones, custom-made carpets and chandeliers, to name but a few unique design elements. The result is soft classical, an enchanting melody of muted tones, refined details and creative use of space, including outdoor courtyards to deliver timeless elegance, comfort and tranquility. Teraciel Properties has recognized the increased demand of discerning buyers seeking luxury properties. By blending innovative architectural design with meticulous attention to detail, The Imperial mansion is a debut that sets a new benchmark in the global real estate industry. “We are thrilled to introduce Teraciel Properties to the UAE market,” said Ujjwal Goel, Director of Teraciel Group. He added, “We found an opportunity in the UAE’s luxury market that we believe Teraciel Properties can fill to provide some of the most discerning buyers with unparalleled quality and design. For decades, we have ensured excellence in all of our facets across the business and we are now committing that same level of distinction to the projects we will be bringing to the market through Teraciel Properties and our associated companies.” Teraciel Properties will continue to expand its portfolio across the UAE. Dubai will see a focus on super-prime residential real estate, with the next projects coming up in Emirates Hills, Emerald Hills and Palm Jumeirah. Further afield Teraciel Properties is also focused on luxury farmhouses in India, offering a suburban lifestyle, close to the city. And more recently, Teraciel Properties has been focusing on Luxury Commercial Building spaces for lease in the National Capital Region in India. CBNME COVER 28 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
CBNME COVER S ymbolic Developments, an innovative venture by the distinguished Speedex Group, is excited to unveil Symbolic Alpha, its flagship real estate project. Tracing its origins back over 30 years to a humble and trusted hardware shop in Deira, Speedex Group’s evolution is a testament to its vision and commitment to transforming the Real Estate landscape. Symbolic Alpha marks a new era in this legacy, blending the Group’s rich history with cutting-edge real estate development. SYMBOLIC DEVELOPMENTS SYMBOLIC DEVELOPMENTS INTRODUCES SYMBOLIC ALPHA 30 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
SYMBOLIC DEVELOPMENTS INTRODUCES SYMBOLIC ALPHA Newly opened on December 7th, the Symbolic Alpha project is situated in the vibrant Liwan district of Dubai, just 18 minutes from Downtown and boasts a unique blend of amenities and luxuries. Offering exclusively crafted 1BHK and 2.5BHK apartments, this property is ideal for both families and young professionals seeking an upscale living experience. The show apartment for Symbolic Alpha, located at the Symbolic Experience Center on Dubai’s Sheikh Zayed Road, is open to visitors who would like to indulge and discover the opulent comforts of Symbolic Developments. “At the heart of Symbolic Alpha is our aspiration to harmonise our rich hardware heritage with the sophistication of modern living. This project is not just about constructing buildings; it’s about crafting a future that resonates with the visionary goals of Dubai to become a smart, green city,” stated Murtaza Moiz, Vice Chairman of Symbolic Developments. “Our objective is to design homes that combine aesthetic allure with sustainability and technological advancements. With Symbolic Alpha, we endeavour to establish a new standard for living experiences, mirroring the city’s commitment to innovation, luxury, and progressive development,” he concluded. Symbolic Developments focuses heavily on minimizing environmental impact and carbon footprint through renewable energy, eco-conscious materials, and efficient building designs. The company’s mission includes creating buildings that conserve energy and water, reduce waste, and enhance the overall well-being of the community. With a vision of leaving a lasting, positive impact on the planet, Symbolic Developments constantly integrates new technologies, facilities and industry-leading practices to push the boundaries of sustainable development for future generations, from energy-efficient built-in appliances to numerous EV charging stations and even a yoga garden. Symbolic Alpha is tailored for investors and families alike. The development offers a significant savings opportunity through its payment plan, appealing to a broad range of investors seeking modern comfort, tranquillity and convenience. With its competitive starting price of AED 750k, Symbolic Alpha is positioned to become a landmark in Dubai’s real estate scene, set to be handed over in 2025. Those seeking to invest in real estate or in the market for a new home are invited to discover Symbolic Alpha at the Symbolic Developments Experience Center on Sheikh Zayed Road, as they unveil the unique aspects of this groundbreaking project. MURTAZA MOIZ, Vice Chairman of Symbolic Developments CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 31
CBNME SUSTAINABILITY W hen Abu Dhabi launched the ESTIDAMA Pearl Building Rating System in 2010, it was as much a decisive action as it was a precursor of more regulations in the global construction industry. Accordingly, administrations in leading cities globally have tightened the regulatory noose in construction, mandating stakeholders to comply with green building ratings. The overarching objective is to drive sustainability in an industry accounting for about 36% of the global final energy consumption and about 40% of the CO2 emissions. The sustainability discourse in the construction industry is often centred around materials, and for the right reasons: Cement, the most utilized construction material in the world, is responsible for up to 2.8 billion tonnes of CO2 emissions annually — about 7–8% of the total emissions globally. To put that into perspective, if the cement industry was a country, it would be the third largest emitter in the world. As an architect, I cannot help but despair over the industry’s “carbon legacy” that could echo through the ages. So, what can be done to reduce that disproportionately high footprint? SUSTAINABLE CONSTRUCTION IS A UNION OF 3M’S: MATERIALS, METHODOLOGY, AND MODELS / BY PRASOON SHRIVASTAVA, FOUNDER & CEO OF PRASOON DESIGN STUDIO AND ZEPTH 32 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
SUSTAINABLE CONSTRUCTION IS A UNION OF 3M’S: MATERIALS, METHODOLOGY, AND MODELS De-carbonization of construction materials A general rule of thumb is to replace cement with alternative, low- footprint, renewable, recyclable materials. As per local feasibility and socioeconomic conditions, bamboo, stones, and laminated timbers make a good case in this regard. Such materials allow architects to reconcile the project with local habitats and the environment while reducing embodied carbon. However, in most locations, particularly urban centres, such materials are unviable due to several reasons, including cost, climatic deterrents, a lack of availability, and local by-laws. Such circumstances — exemplified by most urban centres in the Middle East — require architects to re-envision how cement is used. Typically, by reducing the clinker ratio — the percentage of clinker in cement — the cost of production and the environmental impact can be decreased significantly. Most importantly, provisions to reduce wastage must be made. As it turns out, as much as 30% of the total building materials delivered to a site could be wasted during construction. The use of efficient project management software helps keep the on-site material wastage in check. CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 33
The methods and models for sustainable construction In recent years, modular construction, particularly prefabrication, has gained ground. Prefabs, while largely purpose- built for affordable housing initiatives or makeshift dwellings, carry immense potential for mainstream adoption in the urban development context. With significantly lower carbon footprint and requirements in terms of cost, labour, and time, prefabs epitomize sustainable construction. The same can be said about 3D-printing, which has found an admirer in the UAE, as evidenced by the governmental strategy to 3D-print about 25% of buildings in Dubai by 2030. In the near term, our focus should be on optimizing the existing, traditional construction methods by leveraging technologies such as AI. Intelligent integration of various construction management processes and AI adoption can help developers create a single source of truth, get real-time alerts, make data-driven decisions, and proactively mitigate risks. Centralized construction operations and monitoring will ensure high quality and efficiency while reducing inventory delays, site accidents, and cost overruns. For example, by reducing waste, developers can save on payments made to waste-management companies. Such savings add up significantly over the entirety of the construction phase. Zepth, our AI-driven construction management platform, equipped with all those competencies, was built bearing in mind the building’s life-cycle sustainability. The rationale was that when a building is constructed using a CBNME SUSTAINABILITY 34 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
common data environment (CDE), the resulting tech infrastructure allows facility managers and operators to seamlessly upgrade, operate, and manage energy- consuming systems across their life cycles. Research indicates that the use of sophisticated construction management platforms could potentially deliver a whopping 410 billion euros a year in savings on global energy spending. Besides energy savings, data-driven construction management also enhances the developer’s ESG reputation — something that far supersedes cost savings in today’s eco- conscious consumerism. In the Middle East, policy interventions like ESTIDAMA are essential to achieve visible sustainability outcomes in construction due to the industry’s deep-rooted traditional ways. Going forward, the emphasis should be on incentivizing the developer community to embrace sustainable construction by providing easy access to green materials and subsidizing procurement costs for compliant projects. Incentive- based regulatory approaches are our best bet to strike synergies between green- material suppliers and innovators of novel construction methods and models. If undertaken methodically and timely, they can position the region as a trailblazer in sustainable construction. SUSTAINABLE CONSTRUCTION IS A UNION OF 3M’S: MATERIALS, METHODOLOGY, AND MODELS CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 35
CBNME ACHIEVEMENT BREAKING RECORDS In conversation with Samir Masoud, Supply Chain Director at Fine Hygienic Holding (FHH) Can you provide an overview of the achievement that Fine Hygienic Holding (FHH) recently accomplished and the specific record that you set? Fine Hygienic Holding (FHH) has achieved a significant milestone by setting a new Guinness World Records for the highest tissue paper production rate within a span of 24 hours. The feat was accomplished at our Al Nakheel Paper Mill in Abu Dhabi, where a record 2,623,738 metres of top-grade tissue paper was manufactured in a single day. Operating at an impressive pace of 2,222 metres per minute, the production process resulted in tissue paper with a density of 13.2 grams per square metre (gsm). This achievement not only demonstrates our industry prowess, but also establishes a new industry standard. What is the significance of the Guinness World Records recognition for the highest tissue paper production rate within a 24-hour period for Fine Hygienic Holding? 36 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
BREAKING RECORDS IN CONVERSATION WITH SAMIR MASOUD, SUPPLY CHAIN DIRECTOR AT FINE HYGIENIC HOLDING (FHH) The Guinness World Records validates our dedication to pushing the boundaries of innovation and production excellence, especially when you take into account the fact that there have been world-class multinational companies involved in the tissue industry for decades, with rich histories and experiences. So, for a humble, second-generation family-run company such as Fine Hygienic Holding to achieve the record really is something incredible. We have always believed our standards of excellence could compete with anyone, and this world record proves it. There is now no doubt that FHH can stand toe-to-toe with company in this industry and be competitive. What role did the Guinness World Records officials play in validating Fine Hygienic Holding’s achievement, and what aspects of the production process did they inspect? The whole process began with an initial inquiry and subsequent discussions between the Guinness World Records’ (GWR) commercial department and our team to fully comprehend the record we were trying to set. Following this, the Guinness World Records team conducted preliminary research to verify the feasibility of monitoring the record-setting attempt. Upon contacting the GWR team and apprising them of our achievement, they requested a more in-depth explanation. We provided the necessary details, which they then discussed with their team. Subsequently, they acknowledged that it could indeed be a world record. However, they indicated that we needed to progress CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 37
to the next step, which involved engaging an approved ESOMAR (a membership organization for market, social, and opinion researchers) market research company. We identified the appropriate company, shared their name and credentials, and received the green light from GWR to proceed with them. The chosen market research company presented their methodology for GWR’s approval, after which they began preparing a comprehensive report that encompassed global players. This report was then shared with GWR for careful analysis. After several weeks of studying the submitted report, GWR reviewed its content, posing questions and seeking clarifications as needed. Fine Hygienic Holding diligently adhered to the formalities throughout the process. These efforts culminated in the successful validation of our achievement by GWR. Fine Hygienic Holding is recognised for its diverse range of products. Can you provide some examples of these products and elaborate on the company’s commitment to sustainable practices as mentioned in the press release? Indeed, FHH has strong concerns for sustainable causes, and we are committed to doing everything possible to protect the environment. Our jumbo rolls are then converted into sterilized facial tissues, table napkins, toilet rolls, and kitchen towels, and all are produced at our Abu Dhabi factories. All our paper products at the mill are made from 100% virgin pulp taken from responsible suppliers that are FSC certified. For every tree cut, our suppliers plant up to five. Additionally, we are proud to be a part of the United Nations Global Compact (UNGC) network. In fact, we were the first paper mill in the region to join it. Furthermore, we have made efforts to increase the amount of recycled pulp used in our products. In 2022, at Al Nakheel, we recycled enough pulp to save 17,000 trees from being cut that year alone. We also use oxobiodegradable nylons, which break down quicker in the environment compared to traditional nylons. We preserve water by building state-of-the- art water treatment plants in our factories, and the treated water is used in production and irrigation. As for Al Nakheel, the company has made significant progress in CBNME ACHIEVEMENT 38 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
reducing water consumption at the mill. In 2022, Al Nakheel Paper Mill consumed 4.0m3/ tonne, which is the lowest water consumption in the industry, while the best in class worldwide is 5.5m3/ tonne. The company has also demonstrated continuous improvement in water consumption over the past few years, reflecting its commitment to sustainability. In 2022 alone, the company saved 36,000m3 of water, the equivalent to the water used by 1,200 people in Asia during an entire month. We also work constantly on reducing emissions. Al Nakheel has successfully reduced its carbon emissions year-on-year. In 2022, it saved 2.3 million kWh compared to the previous year, which translates to a reduction of 497 tCO2e. In addition, the company has saved emissions in 2022 by reducing water intensity by 6 tCO2e and waste by about 1,000 tonnes of paper, equivalent to 20 tCO2e. Al Nakheel Paper Mill has also changed its chemicals to higher solid content, which has reduced transportation by 48 per cent and saved 21 tCO2e in 2022. The trend in power consumption shows that the company has reduced its energy consumption from 1,182 kWh/t in 2019 to 1,052 kWh/t in 2022. With over 65 years of operations, Fine Hygienic Holding has received various awards. Could you elaborate on the Excellence in Sustainability Environmental Certificate from CHEP and how it reflects the company’s dedication to sustainability and minimising environmental impact? Al Nakheel Paper Mill recently received the Excellence in Sustainability Environmental Certificate from CHEP, a global provider of supply chain solutions. This recognition is a testament to our significant efforts towards sustainable practices and minimising its environmental impact. CHEP cited that the mill made notable contributions in 2022 to protecting the environment and creating a regenerative supply chain by saving wood resources equivalent to 91,071 cubic decametres, which is equal to preserving 88 trees. Additionally, CHEP acknowledged that A Nakheel successfully reduced emissions by more than half a million kilograms [551,688kg] and minimised waste by 40,008kg. Al Nakheel Paper Mill is also the only paper mill in the UAE to be certified with ISO 50001, a global standard for energy management systems that help organisations improve energy performance and reduce greenhouse gas emissions. This certification, which we received recently, demonstrates the company’s commitment to efficient energy use and management, and our efforts to minimise carbon footprint. BREAKING RECORDS IN CONVERSATION WITH SAMIR MASOUD, SUPPLY CHAIN DIRECTOR AT FINE HYGIENIC HOLDING (FHH) CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 39
CBNME MASTERPLAN T he New Murabba Development Company (NMDC), a fully-owned subsidiary of the Public Investment Fund (PIF), Saudi Arabia, has appointed AtkinsRéalis (TSX: ATRL), a fully integrated professional services and project management company with offices around the world, to support the design of the New Murabba masterplan, the world’s largest modern downtown in Riyadh, and the Mukaab, an immersive destination that will revolutionize the way in which people experience hospitality, retail and leisure. A signing ceremony, attended by Sabah Barakat, Acting CEO, New Murabba Development Company, and Campbell Gray, CEO of AtkinsRéalis, Middle East & Africa, was held to mark this milestone and celebrate the ongoing support to deliver Riyadh’s new iconic destination. Sabah Barakat, Acting CEO, New Murabba Development Company, commented: “We are proud to recognize the important role that AtkinsRéalis has played so far in the translation of the incredible vision of this project into the design of the masterplan and the iconic Mukaab building. NEW MURABBA APPOINTED ATKINSRÉALIS TO MASTERPLAN THE WORLD’S LARGEST MODERN DOWNTOWN IN RIYADH, SAUDI ARABIA 40 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
NEW MURABBA APPOINTED ATKINSRÉALIS TO MASTERPLAN THE WORLD’S LARGEST MODERN DOWNTOWN IN RIYADH, SAUDI ARABIA We’re also pleased to recognize the ongoing involvement of AtkinsRéalis in this project through a series of recent contract awards relating to the further detailing and definition of the overall New Murabba masterplan and infrastructure design, as well as the concept design of the iconic Mukaab building.” “The New Murabba project aligns with Saudi Arabia’s national vision aimed at developing the infrastructure, enabling the private sector, and creating job opportunities for local talent,“ added Campbell Gray, CEO of AtkinsRéalis, Middle East & Africa. “We are proud to work with NMDC on this ambitious project and bring our global engineering excellence and design expertise, underpinned by cutting- edge technologies and sustainable solutions, to deliver a long-lasting legacy for the Kingdom and its future generations.” After successfully winning the international architectural and master planning competition for Riyadh’s new icon, AtkinsRéalis will provide its world class advisory, architecture, masterplanning and engineering services to deliver this groundbreaking project, a cornerstone to the visionary reinvention of the Kingdom’s capital city. Contributing to the city’s future development in line with the Saudi Vision 2030, the New Murabba masterplan is inspired by Riyadh’s original balance with nature, and its design is focused on a data- driven approach to sustainability, user convenience, reduction in the need for transport, walkability and people- centric design of its public realm. “Synonymous with designing iconic landmarks in the Middle East, AtkinsRéalis has established a stellar reputation for delivering people- centric destinations combining the region’s cultural identity with modern urban standards,“ said Matthew Tribe, Managing Director, Planning, Design, and Engineering at AtkinsRéalis, Middle East & Africa. “This project win is a testament to our innovative architectural design approach set to redefine downtowns of the future living experience not only in Riyadh but also globally.” AtkinsRéalis’s competition- winning scheme is inspired by Najdi Architecture, with a focus on creating a futuristic landmark with deep contextual roots that blends Riyadh’s cultural heritage with its future ambitions. The Mukaab, which means cube in Arabic, will be the world’s largest immersive destination providing innovative experiences driven by digital and virtual technology. The Mukaab’s exterior envelop shrouds an internal skyscraper, which will be one of the largest built structures in the world’s history, standing 400m high, 400m wide, and 400m long. The design of the Mukaab will also include first-of-its-kind hospitality, F&B and retail facilities CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 41
CBNME ENERGY DIVERSIFYING UAE’S ENERGY MIX / Kasun Illankoon speaks to Andy Biffen, Asset Development Executive Director, EWEC, about their latest projects, key initiatives to promote renewable energy, the importance of collaboration, and so much more Can you provide an overview of EWEC’s latest projects and their significance in meeting the growing energy demand while ensuring sustainability? In line with the UAE’s clear vision to develop a water and electricity sector that prioritises cutting-edge renewable and clean energy projects, EWEC is at the forefront of driving this transition. By leading the way, EWEC also aims to safeguard power and water security for Abu Dhabi and beyond. Driving the diversification of the UAE’s energy mix and increasing the share of renewable and clean energy in Abu Dhabi’s power grid, EWEC has commissioned the development of four of the world’s largest single- site solar power plants. Noor Abu Dhabi, commercially operational since 2019, generates approximately 1GW (AC) of electricity, while our recently inaugurated Al Dhafra Solar PV, the world’s largest single-site solar power plant, has a generation capacity of 1.5GW (AC). We have also recently commissioned the development of two additional solar power projects, Al Ajban Solar PV and Khazna Solar PV, both equal in size and scale to Al Dhafra Solar PV. When these projects are operational, Abu Dhabi—and, by extension, the UAE—will have four of the world’s largest single-site solar power plants, increasing the diversification of EWEC’s energy production portfolio and significantly advancing the decarbonisation of the energy sector. Implementing these strategic renewable and clean energy projects will see the company’s average carbon dioxide intensity from electricity generation fall from 0.33 kilograms per kilowatt-hour (kg/kWh) in 2019 to an estimated 0.19kg/kWh by 2029. To ensure a reliable and sustainable future for water desalination, EWEC is actively progressing with the development of two low-carbon intensive reverse osmosis (RO) projects: Mirfa 2 RO and Shuweihat 4 RO. Additionally, the company is advancing the development of the Abu Dhabi Islands RO project, which involves the construction of two independent 42 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
DIVERSIFYING UAE’S ENERGY MIX greenfield RO seawater desalination plants situated on Saadiyat Island and Hudayriat Island, strategically close to water consumers. Once these projects are operational, our low-carbon- intensive desalination plants will have a combined production capacity of 618 million imperial gallons per day (MIGD) by 2027. By 2030, we expect over 90% of our water production to be from RO technology, leading to a significant decrease in carbon emissions from 11.5 kilograms per cubic meter (kg/ m3) in 2019 to an estimated 1.4 kg/m3 by 2029, representing a remarkable decrease of 88%. What are some of the key initiatives undertaken by EWEC to promote renewable energy and reduce carbon emissions in the region? Since its establishment, EWEC has been dedicated to expanding its portfolio of world- leading utility-scale renewable energy projects and low carbon- intensive reverse osmosis (RO) water desalination projects. These initiatives significantly accelerate the UAE’s energy transition, reduce dependence on hydrocarbons, and achieve decarbonisation in the energy sector. By developing solar power plants and low-carbon intensive desalination facilities, we actively support the UAE Energy Strategy 2050, UAE Water Security Strategy 2036, and the UAE Net Zero by 2050 strategic initiative. Our efforts aim to increase the proportion of clean energy within the nation’s overall energy mix. Looking ahead to 2030, EWEC plans to grow Abu Dhabi’s solar power capacity to 7.6GW, an approximately threefold increase compared to today. Additionally, we remain committed to investing in low-carbon intensive RO water desalination technology to promote the separation of water and electricity production. Beyond world-leading renewable energy and low-carbon intensive RO water desalination projects, EWEC is the primary enabler for implementing Abu Dhabi’s CECs scheme. The CEC scheme, introduced by the Abu Dhabi Department of Energy (DoE), is a strategic initiative designed to enable companies in Abu Dhabi to validate their claims of clean energy consumption. The CECs scheme supports the UAE’s transition towards a sustainable, decarbonised economy in alignment with the UAE Net Zero by 2050 strategic initiative. EWEC acts as both the Single Registrant and Auction Operator, playing a pivotal role in establishing the primary market for this innovative instrument. Could you share some specific examples of how EWEC collaborates with other stakeholders, such as government entities or private companies, to drive sustainable energy development? ANDY BIFFEN, Asset Development Executive Director of EWEC CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 43
CBNME ENERGY As mentioned, the CECs scheme is a strategic initiative introduced by the Abu Dhabi Department of Energy (DoE). It enables Abu Dhabi-based companies to validate their clean energy consumption claims and support the UAE’s transition towards a sustainable, decarbonised economy. Furthermore, CECs offer participating companies a competitive advantage by holding internationally recognised certificates that certify their green credentials. Through the CECs scheme, EWEC has formed important clean energy partnerships with major companies to support their sustainability goals. Since the launch of the CECs scheme, we’ve collaborated with partners in the energy, industrial, healthcare, commercial, and retail sectors and, most recently, through a partnership with the UAE Pro League, the sports sector. We hold quarterly auctions, and the market continues to grow for this innovative scheme. This is a testament to these companies’ commitment to tackling climate change and contributing to the country’s broader sustainability goals. How does EWEC ensure a balance between meeting the energy and utilities needs of the present and fostering long-term sustainability for future generations? By the second half of this century, the ultimate objective is to have transitioned from hydrocarbon to zero- carbon energy sources successfully. However, considering the timeframe of nearly three decades ahead, there remains a significant amount of work to be accomplished. Consequently, while the sector transforms into a clean and renewable-focused industry, we must ensure energy security. For this purpose, thermal plants will still support the transition to a renewable and clean-focused energy sector. Can you elaborate on any innovative approaches or technologies that EWEC is exploring or implementing to enhance the sustainability and efficiency of its energy generation and distribution infrastructure? EWEC is dedicated to implementing various innovative approaches to ensure a reliable and sustainable power and water supply. One of these technologies is RO desalination, which, as mentioned before, significantly enhances efficiency. Compared to traditional thermal desalination, RO enables EWEC to desalinate water with a remarkable 96 per cent improvement in efficiency. In thermal desalination, water is heated using low-grade heat from the thermal power plant, enabling salt-free water vapour to be collected. The process requires considerable amounts of thermal energy, which, at times of low power generation, needs to be supplemented by live steam from the boilers or even the burning of natural gas in auxiliary boilers to provide the necessary thermal energy. These thermal desalination units are typically situated alongside gas-fired power plants, meaning water and power are generated from the same location. In contrast, RO desalination 44 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
DIVERSIFYING UAE’S ENERGY MIX plants use electricity directly to drive the separation process, resulting in significantly lower carbon intensity than traditional thermal desalination technology. Moreover, RO plants contribute to decoupling water production from power generation, which addresses security of supply challenges during periods of low electrical demand, particularly in winter. By separating desalination facilities from power plants, they can be conveniently located close to areas of demand, reducing the costs associated with pumping water from production sites to consumption areas. This leads to a substantial decrease in energy usage and significantly reduces carbon footprints. The deployment of RO desalination projects brings about remarkable benefits, with total carbon emissions associated with water production projected to decrease from 11.5 kilograms per cubic meter (kg/ m3) in 2019 to an estimated 1.4 kg/m3 by 2029, representing an approximate 88 per cent reduction. How does EWEC recognise the significance of collaboration and partnerships in driving sustainable energy solutions, and what role do external stakeholders play in achieving the company’s goals and objectives? Undoubtedly, no single company or sector can get to the net-zero reality alone. Only by harnessing the power of partnerships can we unlock our collective potential. We work with leading local, regional, and international partners on our projects to ensure we utilise the latest technologies to support our strategies to decarbonise energy production. Collaboration is key in ensuring we meet the nation’s climate goals, and we’re delighted to work with partners to make a significant impact on decarbonising energy production and consumption. CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 45
CBNME TALKING POINT TECHNOLOGY TRENDS FORECAST GCC TECH TRENDS IN 2024 ACCORDING TO WAKECAP 1. Generative AI: The construction industry is poised for a transformative shift with the integration of Generative AI, a groundbreaking technology that is expected to revolutionize everyday applications. This super-smart assistant, available 24/7, will not only automate routine tasks but also act as a catalyst for growth by giving project management an early heads-up of problems caught by the massive amount of data from the construction site. However, it’s critical to remember that this technology is not a substitute for human creativity; rather, it works in conjunction with it. As such, an integrated strategy that embraces both technological innovation and human creativity will be pivotal to businesses, even those outside the construction industry. 2. Internet of Things: The emergence of connected construction sites powered by Internet of Things (IoT) technology will continue to revolutionize operations by improving communication, efficiency, and safety through real-time monitoring of equipment, materials, and workers. IoT will enable optimization of resource utilization, better management, enhanced worker safety and productivity, and insightful predictive analytics taken from its data for proactive decision-making – all making impactful improvements that save time and costs! The integration of IoT signifies not just a trend but an industry-wide shift towards smarter, safer, and more efficient and sustainable construction sites. 46 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
TECHNOLOGY TRENDS FORECAST: GCC TECH TRENDS IN 2024 ACCORDING TO WAKECAP 3. Integrated Construction Tech: We are expecting to see massive benefits from connecting multiple construction technologies to get a better understanding than what any one product can indicate. Cost control and supervisory teams are going to get more accurate, faster, and less expensive progress tracking by integrating wearables with their planning tools. Safety teams will see all aspects of an accident response by combining SOS buttons on wearables, vehicle trackers, video AI, digital medical clinics, and safety control centers to ensure safety response goals are met. 4. Sustainable technology: The construction industry sees a continuation of proactive adoption of environment-friendly practices and innovative solutions to mitigate environmental challenges. The commitment to sustainability is evident in its embrace of renewable energy technologies and these efforts also extend beyond infrastructure to incorporate electric vehicles and public transport into logistics planning. In addition, the rising demand for green buildings also reflects an industry- wide move towards sustainable practices, such as the use of eco- friendly materials and energy-efficient systems. 5. Technical wellness and cyber resilience: This is a holistic approach, a strategy that is crucial for the industry’s sustainable growth and innovation to address technical issues and maintain a robust technology foundation for future advancements, and resilience in potential risks. This trend extends beyond cybersecurity; it encompasses measures for recovery and continuity when defenses are breached or disrupted due to unforeseen circumstances. Hassan Albalawi, CEO and Founder of WakeCap, commented: “To keep up with these changing trends, we need to integrate our current systems and investments with new innovations. At WakeCap, we are committed to being at the forefront of technological innovations in the industry. Our planning and creativity are focused on making construction smarter, safer, and more efficient – without disrupting the workflow! The ability to adapt and innovate while maintaining business continuity is what will enable us to successfully traverse the evolving construction landscape.” WakeCap is a ‘smart hard hat’ solution that helps site owners and contractors to improve productivity, reduce wastage and achieve higher levels of operational efficiency on their sites. WakeCap is an easy-to-implement, cost-effective technology that combines simple-yet-smart hardware with highly accurate data. Founded in 2017 and with offices in Riyadh, Dubai, and San Francisco, WakeCap’s technology enables real- time monitoring and data collection on complex projects such as construction sites, where it isn’t possible for team leaders to ‘be everywhere and see everything’. Their innovative solutions streamline workflows, resulting in significant time and cost savings, while providing unparalleled visibility into site operations. By leveraging our services, our clients gain valuable insights, allowing them to identify bottlenecks and make informed decisions that enhance overall efficiency. HASSAN ALBAWABI, Founder and CEO of WakeCap CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 47
CBNME TRENDS T he new year is on the horizon and Thomas & Adamson (T&A), the international project management and cost consultancy firm, expects the construction industry’s evolution in 2024 will be fuelled by a mix of existing trends and fresh drivers. Rising raw material prices, labour shortages, higher labour costs, high demand, high competition, and government policies all influenced the built environment in 2023. Looking ahead, the need to deliver projects on schedule and budget, maintain profit margins, new government mandates and legislations post COP28, and the urgent need to decarbonise supply chains and the delivery and operation of structures are all expected to shape the construction market in 2024. Post COP28, the challenge to preserve our planet by staving off catastrophic climate change continues to gather momentum, which means construction stakeholders will have to become more acutely focused on doing their part for the future of the planet. Clients will likely seek out construction partners who mirror their sustainability goals, which means companies that champion sustainable development have an opportunity to standout in the market and win lucrative business. Digital Construction As projects become increasingly complex, coupled with the greater demand for efficiency, productivity, communication, collaboration, and compliance with new building regulations, construction project- and cost-managers will look to better leverage Building Information Modelling (BIM) and Construction Management Softwares (CMS) in 2024. Market Research notes that while the BIM market was worth $8.89 billion in 2020, it is projected to reach $23.2 billion by 2026, as a growing number of organisations look to amplify their use of BIM to not only create and deliver projects, but leverage these models to manage the operations and maintenance of buildings throughout the structure’s entire lifecycle. Similarly, the CMS software market is also poised for significant growth, going from $9.3 billion in 2021 to a projected $23.9 billion in 2031 according to Allied Market Research. CMS has proven effective at enabling construction teams to better manage a project’s planning, scheduling, communication, and documentation, and deliver improved efficiency and reduced THOMAS & ADAMSON 2024 CONSTRUCTION, COSTS AND PROJECT MANAGEMENT PREDICTIONS & TRENDS 48 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
THOMAS & ADAMSON: 2024 CONSTRUCTION, COSTS AND PROJECT MANAGEMENT PREDICTIONS & TRENDS costs on projects, which is why it’s likely to see greater use across the built environment. The demand for greater construction efficiency and productivity will also see the burgeoning trend of using drones and unmanned aerial vehicles (UAVs) grow in 2024. Drones have already proven adept at quickly and easily performing site surveys and mapping of construction sites, thereby providing accurate data that can be used to better plan and manage the project in question. Drones are also increasingly being used to quickly and efficiently perform inspections of hard-to-reach or dangerous areas, which offers the added bonus of enhanced worker safety. A new breed of cost-effective drones can now even be deployed to navigate and inspect complex HVAC duct systems – inspections were in the past arduous, costly and time- consuming tasks. In 2024, should the relevant legislation be passed by authorities, we may also see heavy-duty drones perform material deliveries to jobsites, and potentially even from stores onsite to where they are needed on the project being developed. Drones could also be used to scan and rapidly create 3D models of construction sites when needed, which can be used to visualise the project more accurately and identity potential problems. Supply Chain From a supply chain standpoint, T&A expects the cost of most essential construction materials to climb in 2024, albeit by a smaller margin than what has been observed in recent years. Weak economic conditions in a number of international markets will have a knock-on effect on construction in those markets, which could ease some of the pressure that the global supply-chain has been under since the outbreak of COVID-19. The availability of local materials and/or viable alternatives in some markets will also have an impact on construction projects in 2024. Increased usage of prefabrication and modular construction techniques is also on the cards in 2024 as both offer several advantages to traditional delivery methodologies. By leveraging controlled factory environments to produce individual components or entire rooms, companies can significantly reduce wastage, while achieving faster project delivery and greater precision and quality. Hospitality brand Marriott recently said that it estimates offsite construction will reduce a hotel’s average construction time by eight months, allowing developers to start operating sooner. Similarly, 3D printing technology could become more commonly used as a method of project delivery in 2024. 3D printers have already delivered several structures across the Middle East and around the world, and while 3D printing hasn’t fully taken off as yet, it’s potential to deliver certain types of structures at attractive price points and in record times is apparent. In some markets, the cost of a basic 3D printed home is said to be around US $10,000, however that could be as little as $4,000. Apart from the cost benefit, 3D printing reduces waste and turnaround times, and as just a single machine or an identical group of machines is needed to mass print 3D designs with minimal labour needed onsite, 3D printing could potentially takeover the delivery of certain types of projects, such as affordable housing in the new year. ZANDER MUEGO, Partner of Thomas & Adamson CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 49
UAE recently hosted the COP28 in Dubai where close to 198 countries participated in an aim to maintain the pledge made in 2015. At COP21 in 2015, the world agreed to limit global warming to 1.5°C compared to pre-industrial levels by 2050. To remain on target, science tells us that emissions must be halved by 2030. There are only seven years to meet that goal. COP28 UAE is a prime opportunity to rethink, reboot, and refocus the climate agenda. Located in a region where heat is already extreme and fresh water scarce, the UAE has long understood that climate change poses a grave risk that must be defeated. The country is now a regional energy and sustainability leader, as the first among its neighbors to pledge national emissions reductions, while committing billions towards a clean energy transition across the world. The UAE has grown and diversified its economy, creating knowledge, skills, and jobs for its young people, while contributing practical solutions to a global problem that affects us all. We look into the latest stories to breakout from COP28 in this special report. COP28 50 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
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CBNME COP28 S olutions+, a Mubadala company, and Mubadala Investment Company have signed a Memorandum of Understanding (MOU) at COP28, solidifying a strategic partnership on a decarbonization journey for corporate operations, leveraging Solutions+’s expertise in shared services and sustainable practices. This multifaceted partnership is set to encompass crucial aspects such as annual carbon emissions calculation, implementation of energy efficiency measures and enhance overall operational sustainability, aligning with Mubadala’s commitment to being a responsible investor. Commenting on the partnership, Nasir Nabhani, CEO at Solutions+, said: “We are happy to embark on this journey with Mubadala Investment Company to drive meaningful change in the realm of decarbonization. Our collaboration signifies a shared commitment to environmental responsibility, and we are confident that our collective efforts will make a significant impact.” Mansour Al Ketbi, Executive Director of Digital & Corporate Services at Mubadala said: “A central component of Mubadala’s mandate is to create opportunities for future generations. This collaboration with Solutions+ represents a meaningful step towards safeguarding that future by further integrating climate considerations into our corporate operations. We are delighted to be taking this step with Solutions+ and to be working to collectively to help achieve our National Net Zero Targets.” This collaboration aligns with both organizations’ dedication to supporting the net zero commitment of the UAE’s Government and marks a pivotal step towards a greener and more resilient future. SOLUTIONS+ SIGNS AN MOU WITH MUBADALA INVESTMENT COMPANY FOR DECARBONIZATION INITIATIVES 52 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
TECHNOLOGY TRENDS FORECAST: GCC TECH TRENDS IN 2024 ACCORDING TO WAKECAP R OSHN Group, Saudi Arabia’s leading national real estate developer and PIF- owned giga-project, is delighted to announce its participation in the UN Climate Change Conference (COP28) taking place in Dubai from 30th of November-12th of December 2023. ROSHN’s participation in COP28 exemplifies its steadfast support to smart city practices that align with United Nations’ Sustainable Development Goals (SDGs) and aspirations of the Saudi Vision 2030. ROSHN’s involvement will be spearheaded by Director of Sustainability, Waleed AlGhamdi, who will join a panel titled, Smart energy cities for climate resilience, where he will offer an inside look into how smart city technology is leveraged across ROSHN’s projects and the impact this has had on ROSHN’s sustainability strategy, reducing emissions, improving water efficiency, and boosting efficiency. AlGhamdi’s engagement reflects ROSHN’s wider commitment as a giga-project, enabler of Saudi Vision 2030, and member of the UN Global Compact to leading climate- change adaptation measures in the Kingdom while setting new regional standards in sustainable development. “Our participation in COP28 closely aligns with our core values of sustainability and responsibility. We willingly take on the responsibility of developing sustainable communities that leave a positive impact for future generations. At the same time, we strive diligently to set new standards for sustainable development in the region and redefine the construction sector for a sustainable future. The United Nations Climate Change Conference is one of the most important platforms where world leaders, decision-makers, experts, and researchers come together to explore innovative solutions to address climate issues. We have implemented numerous sustainability concepts in our projects at ROSHN, which we will proudly present to the world through this conference. We eagerly look forward to utilizing the COP28 platform for fruitful discussions on how to tackle the pressing climate challenges that lie ahead.,” remarked Ghada Alrumayan, ROSHN’s Group Chief Marketing & Communication Officer. The Conference of the Parties (COP) to the Climate Convention serves as the primary decision-making body within the United Nations Framework Convention on Climate Change (UNFCCC) brining together the 198 parties that have signed the Convention, along with their negotiators, and to convene annually since 1995. This conference is the official venue for negotiations and agreements on how to address climate change, reduce emissions, and mitigate global warming. Among the core responsibilities of the COP meetings is the review of national reports and emissions data submitted by participating countries. These reports provide essential information about each country’s actions and progress towards achieving the overarching goals of the Convention. ROSHN’s solid focus on sustainability reaches new heights through its membership in the UN Global Compact, the world’s largest corporate sustainability initiative. This affiliation further supports ROSHN’s determination to integrate environmental protection, human rights, labour rights, and anti- corruption principles into its core strategies and day-to-day operations. ROSHN SPOTLIGHTS ITS SUSTAINABILITY CREDENTIALS AT COP28 CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 53
CBNME COP28 A ligning with the COP28 consensus, the UAE’s Net Zero by 2050 Strategic Initiative and the global 1.5 C ambition, BEEAH has announced its commitment to achieving net-zero emissions by 2040 within its operations by methodically building on its initiatives and projects that are already working towards this target. With the conclusion of COP28, the UAE officially became the first nation to deliver a global stocktake report, rallying 200 countries to reach a consensus on key actions for the next decade, including the phasing out of fossil fuels, signalling an unprecedented occurrence of global solidarity towards positive climate action. As a climate supporter at COP28, BEEAH participated in dialogue, exchanged insights and launched landmark new projects to align with these developments. This has enabled BEEAH to progress towards net zero within the organisation while helping fulfil the climate ambitions of its partners and cities of operation. To date, BEEAH has already made tremendous progress in driving towards net zero. In the emirate of Sharjah alone, BEEAH’s zero-waste strategies have enabled BEEAH to achieve a landmark 90% landfill waste diversion. As a result, BEEAH has reduced Sharjah’s dependence on landfills, and is therefore BEEAH ANNOUNCES COMMITMENT TO ACHIEVING NET-ZERO EMISSIONS BY 2040 54 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
BEEAH ANNOUNCES COMMITMENT TO ACHIEVING NET-ZERO EMISSIONS BY 2040 supporting the reduction of landfill emissions, which account for 60% of greenhouse gases emitted in UAE’s waste management sector. “As an organisation headquartered in the UAE, BEEAH has been closely aligned with the national sustainability agenda since our foundation,” said Khaled Al Huraimel, Group CEO of BEEAH. “In less than 15 years since BEEAH’s founding, we have nearly reached our target of zero waste to landfill waste in Sharjah with a 90% waste diversion rate that is steadily increasing to reach 100% - a regional first. Over the next 15 years, we will build on our existing emission reduction strategies, adopt new innovations, diligently track our progress, and achieve net-zero emissions by 2040.” Driving BEEAH’s pathway to achieve total landfill waste diversion and net-zero emissions is BEEAH’s end-to-end waste management ecosystem, which includes digitally-enabled waste collection with route-optimised fleet operations, an integrated waste management complex that processes and recycles nearly all types of waste, and groundbreaking waste-to-energy innovations. The Sharjah Waste to Energy plant, a project of the Emirates Waste to Energy joint venture between BEEAH and Masdar, is located adjacent to BEEAH’s Waste Management Complex. It currently produces 30 MW of power, enough for 28,000 homes, and displaces 450,000 tonnes of CO2 annually. During COP28, BEEAH forged new partnerships to develop two major projects to add to its waste- to-energy ecosystem, including a solar landfill and a waste-to-hydrogen plant. As BEEAH achieves total landfill waste diversion in Sharjah, it will seal off its landfill and repurpose the land for a 120 MW solar farm, a first-of-its-kind development in the region, in collaboration with Masdar and the Sharjah Electricity and Water Authority (SEWA). Its commercial scale waste to hydrogen plant, in collaboration with Air Water and Chinook Hydrogen, will be another global first, backed by the breakthrough results from successful trials in Nottingham that demonstrated a commercially viable and carbon-negative process to convert municipal solid waste into fuel cell-grade hydrogen. Both the solar landfill and the waste-to- hydrogen plant will be located adjacent to BEEAH’s waste management complex and the Sharjah Waste to Energy plant, offering possibilities for BEEAH to power its operations from clean energy sources and decarbonise fleet operations with fuel-cell grade green hydrogen. In addition to end-to-end waste management and clean energy innovations, BEEAH Group’s portfolio includes businesses in digital transformation, environmental education, sustainability consulting, green mobility, real estate and healthcare, which all contribute to its goal of shaping sustainable, smart cities and elevating quality of life. BEEAH Group currently has 13,000 employees working across the UAE, KSA and Egypt. In 2022, the organisation inaugurated the BEEAH Headquarters, an iconic, LEED Platinum-certified building designed by Zaha Hadid. The BEEAH Headquarters sets an example for offices of the future, built on principles of sustainability and digitalisation and offering a blueprint for smart-built infrastructure in future- ready cities. It has an on-site solar plant, greywater recycling plant and digital twin technology with predictive AI to minimise and optimise energy consumption based on occupancy, temperature and time of day. “Climate solutions are the foundation of our business and we have always led by example within our own operations. We are committed to providing solutions to our partners and cities of operation and contributing to wider sustainability targets locally, regionally and globally. At the same time, we are examining our own operations, so that as we scale and grow, we ensure that we enhance our contributions to positive climate action. This is the purpose of our commitment to achieve net zero by 2040,” Al Huraimel added. CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 55
CBNME COP28 MINISTRY OF INDUSTRY AND ADVANCED TECHNOLOGY WRAPS UP A SUCCESSFUL PARTICIPATION IN COP28 WITH INTRODUCTION OF NEW INITIATIVES AND AGREEMENTS 56 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
MINISTRY OF INDUSTRY AND ADVANCED TECHNOLOGY WRAPS UP A SUCCESSFUL PARTICIPATION IN COP28 WITH INTRODUCTION OF NEW INITIATIVES AND AGREEMENTS T he Ministry of Industry and Advanced Technology (MoIAT) has concluded its participation in COP28, which took place from November 30 to December 12 at Expo Dubai. COP28 convened the parties to the United Nations Framework Convention on Climate Change (UNFCCC) to assess progress on the goals of the Paris Agreement. It also united international efforts to find effective, practical, and ambitious solutions to urgent climate challenges. MoIAT’s participation MoIAT’s participation in COP28 demonstrated the nexus between industry, technology and climate action. The ministry hosted local, regional and global entities, engaging with thousands of experts, investors, innovators, and visitors at its pavilion. In addition, MoIAT hosted and participated in special sessions, interactive discussions, and workshops, as well as the signing of several memoranda of understanding with international partners. The ministry’s participation aligns with the National Strategy for Industry and Advanced Technology, which aims to boost the adoption of advanced technology in the industrial sector, accelerate industrial transformation, as well as attract local, regional, and international investments. Among the strategy’s main objectives is strengthening the UAE’s position as an industrial and technological hub that attracts innovators, pioneers, and investors, providing them with opportunities and financing. This is supported by advanced infrastructure, in addition to world-class logistics networks and digital infrastructure. The Industrial Decarbonization Roadmap During COP28, the ministry launched a decarbonization roadmap for the industrial sector with a focus on hard-to-abate industries such as cement, iron, steel, and aluminum. This strategic direction reinforces the UAE’s position and commitment to addressing climate change challenges and achieving national sustainability goals. The roadmap was developed in coordination and collaboration with strategic partners in both the public and private sectors, in line with national efforts to achieve the UAE Net Zero by 2050 strategic initiative as well as sustainable economic development. It also aligns with the third update to the UAE’s Nationally Determined Contribution (NDC) report under the Paris Agreement and UNFCCC. COP28 sessions The ministry convened policymakers, technology players and global industrial leaders in a series of special sessions to address ways of enhancing the industrial sector’s contribution to climate action and sustainable economic development. In collaboration with the United Nations Industrial Development Organization (UNIDO), the ministry hosted several sessions, including the high-level ‘Technology in Decarbonization’ session lead by HE Sarah Al Amiri, Minister of State for Public Education and Advanced Technology and Gerd Muller, Director General of UNIDO. The session, which took place in COP28’s Blue Zone, addressed the opportunities and challenges related to decarbonization, with a focus on the role of government in accelerating the development and deployment of CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 57
CBNME COP28 technologies. It was aimed at facilitating dialogue among international policymakers, promoting the exchange of best practices, and enhancing collaboration. The ministry, also in collaboration with UNIDO, hosted several sessions in the Green Zone including: ‘The Roadmap to Tripling Renewable Capacity: Advancing the Energy Transition’; ‘Low-Emission Hydrogen for Net-Zero Industrial Development’; ‘Research and Development for Climate Action’; and ‘Decarbonization of Hard-to-Abate Sectors: A Global Imperative’. World Industrial Day As part of its COP28 participation, the ministry collaborated with the Global Manufacturing and Industrialisation Summit (GMIS) and UNIDO for the launch of the World Industrial Day. The international day promotes inclusive and sustainable industrial development. Green Public Procurement The UAE endorsed the Green Public Procurement Statement of Intent. The initiative, which falls under the Clean Energy Ministerial Industrial Deep Decarbonisation Initiative (IDDI), reflects a collective effort among participating governments to boost demand for low and near-zero-emission steel, cement, and concrete through public procurement. Developed on account of the significant role that public procurement plays in the hard-to-abate steel and concrete sectors, the initiative aims to tackle challenges associated with reducing emissions from these materials, which contribute to approximately 16% of global greenhouse gas emissions. UAE and Canada The UAE and Canada launched The Cement and Concrete Breakthrough initiative with the aim of fostering international collaboration to accelerate decarbonization in the cement industry. The initiative seeks to develop and implement policies and processes that drive the adoption of sustainable practices in the cement and concrete industry, contributing to decarbonization in the industrial sector by 2030. UAE-Vietnam MoU MoIAT signed a memorandum of understanding with Vietnam’s Ministry of Science and Technology to strengthen collaboration on quality infrastructure. Under the MoU, MoIAT will provide technical expertise to the Directorate for Standards, Metrology and Quality of Vietnam’s (STAMEQ) Halal Certification Agency through the UAE Halal System. The initiative is aimed at meeting the UAE’s requirements on entities issuing Halal certificates and contributes to increasing trade between the two countries. The ministry’s pavilion During its participation in COP28, the ministry hosted 38 local and international entities providing technological solutions that support sustainability, carbon reduction, and climate action. MoIAT brought together ecosystem players, 58 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
MINISTRY OF INDUSTRY AND ADVANCED TECHNOLOGY WRAPS UP A SUCCESSFUL PARTICIPATION IN COP28 WITH INTRODUCTION OF NEW INITIATIVES AND AGREEMENTS technology providers, small and medium-sized enterprises (SMEs) and startups at its pavilion and the Startup Village. Through its pavilion, the ministry provided an integrated platform showcasing the latest technological solutions in sustainability across various sectors, with a focus on industry. MoIAT aimed to promote investment opportunities, facilitate knowledge exchange, and foster collaboration between local and international entities. The ministry’s pavilion presented a wide range of advanced technological solutions to accelerate climate action, supporting efforts to achieve climate neutrality by reinforcing the role of the industrial and advanced technology sector. The pavilion also provided an opportunity for innovators and startups to engage directly with local and international entities involved in the industrial, technological, and environmental sectors. Additionally, the pavilion hosted prominent national and international, fostering business growth opportunities. Under the ‘Make it in the Emirates’ initiative, the pavilion showcased sustainable industrial investment opportunities in the UAE and highlighted the country’s business friendly environment. CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 59
CBNME SUPPLY CHAIN D estination-scale projects not only showcase a nation’s capabilities but also reflect its heritage and identity. This is particularly evident in the Middle East, where the use of natural stone in these projects is providing not just building blocks but also a vital ingredient in forging the region’s architectural identity and its march towards forward-looking development. For asset owners, a key challenge in sourcing natural stone for these large-scale projects is ensuring that the material is delivered on time, within budget, and to the desired standard of quality while navigating the growing complexities of the global supply chain. The impact of getting material sourcing and procurement right from the start is significant. An estimated 30 percent of overall construction globally is rework – including failure to procure materials in sufficient volume on time, replacing materials that are unfit for purpose, correcting errors made during installation and lack of coordination among contractors. Today’s market dynamics, especially in the wake of the significant global supply chain disruptions brought by the COVID-19 pandemic, call for an agile and transparent procurement approach. Asset owners must adopt an integrated strategy in sourcing natural stones — one that aligns their vision with the evolving realities of the global market. This approach is more than just meeting timelines and budgets; it’s about upholding quality standards that define these monumental projects. REDEFINING DESTINATION SCALE PROJECT MANAGEMENT /Authored by Marco Fahd, Group Chairman and CEO, Versatile International 60 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM
REDEFINING DESTINATION SCALE PROJECT MANAGEMENT: WHY ASSET OWNERS SHOULD PRIORITIZE SUPPLY CHAIN TRANSPARENCY The Importance of Supply Chain Transparency The foundation of effective destination-scale project management lies in the transparency of its supply chain. However, supply chains were not designed to be transparent. Traditionally, companies and suppliers have harbored a reluctance to divulge detailed information, fearing the erosion of competitive advantage or exposure to criticism. This veil of secrecy, while seemingly beneficial in a competitive market, can inadvertently sow the seeds of inefficiency and risk, particularly in giga projects where stakes are high. In the natural stone industry, the risks for asset developers are multifaceted. To begin with, sourcing quality material that adheres to the project vision is critical. In the Middle East, where these projects often represent a blend of cultural heritage and modern engineering, the choice of stone is not merely a matter of aesthetics but also of authenticity and longevity. The variability inherent in natural stone adds layers of complexity in ensuring consistency and quality. Faced with such variability, asset developers must navigate a labyrinth of stone suppliers, each offering material of different quality. Handling a modest volume of material in this way may be straightforward; but overseeing a supply large enough to cover 100 football fields - as is often the case with destination-scale projects - is an entirely different matter. Due to these projects’ sheer size and complex supply chain, even minor quality issues can spiral into significant schedule delays and cost overruns. This challenge is compounded by the changing landscape of Environmental, Social, and Governance (ESG) regulations. With policies becoming more stringent in many destination countries, developers are increasingly held accountable by regulators and investors not just for their immediate practices but for their entire supply chain’s adherence to these standards. The Saudi Stock Exchange, for example, has published a list of ESG guidance including metrics on labor management, material sourcing, supply-chain labor standards, and tax transparency. Neglecting transparency in the supply chain, thus, may bring potential regulatory breaches and ethical non- compliance, leading to reputational damage and the possibility of significant investment withdrawals or project cancellations. The natural stone industry is particularly susceptible to supply chain opacity due to several inherent factors. Firstly, natural stone quarries, often located in regions with varying labor and ESG compliance standards, can pose ethical and regulatory challenges, if not properly vetted and monitored. Additionally, natural stone’s inherent variability poses a significant challenge. Quarries, even within the same region, can yield stone with considerable differences in quality and appearance. This complexity of sourcing from diverse geographical locations, combined with the natural variability of the product, makes transparency in the supply chain not just a matter of ethical compliance but also of ensuring the integrity and quality of the final construction project. Getting Stone Procurement Right from the Start The escalating scale and complexity of modern-day giga projects, compounded by global supply chain disruptions and stringent ethical and regulatory demands, reveal that traditional procurement methods in material sourcing are fundamentally broken. CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 | 61
According to the McKinsey Global Institute, the demand for destination- scale projects is increasing, now representing 8% of the world GDP. Yet, mere 0.2% of these projects successfully have met their initial projections in terms of cost, schedule, and expected benefits since the 2000s. Asset developers need to adopt a more integrated and transparent procurement approach, one where the entire supply chain, from quarry to installation, is closely monitored and managed to ensure alignment with both the quality standard and ethical and environmental compliance. At Versatile International, our work pioneers this innovative procurement approach. As the first fully integrated stone project management consultancy (SPMC) in the Middle East, our project governance model is designed specifically for destination-scale asset developers. Our approach guarantees certainty of outcome by meticulously removing supply chain risks at every stage of the procurement process. At the outset, we work closely with developers to guarantee the selected stone aligns with project requirements, considering properties such as water absorbency, tensile strength, and resistance to weathering. When potential risks surface, we offer corrective recommendations for the best procurement strategy. During procurement, we evaluate suppliers based on material quality, delivery timeline, and appropriate ESG practices. We inspect the stones at their source to confirm they match specifications, ensuring consistency with the project’s vision upon delivery. By getting stone procurement right from the start, we remove supply chain risks, increase transparency for asset owners, and guarantee precision and quality in project delivery. Our partnership with the Diriyah Gate Development Authority, Saudi Arabia’s flagship cultural heritage initiative, has seen the successful completion of more than 50 projects, reflecting our commitment to managing large-scale, complex supply chain challenges in the natural stone industry. Conclusion In conclusion, our imperative is clear. Embrace a holistic, transparent procurement strategy that stands resilient and adaptable in the face of evolving market dynamics. At Versatile International, we understand this and have in place a robust approach to natural stone procurement that significantly reduces the supply chain risk at every stage. By adopting this approach, asset owners in the Middle East have the unique opportunity to set a global benchmark in project management. It’s a chance to lead, showcasing how change and innovation can drive long- term success, even amidst the most challenging scenarios. In doing so, the region can demonstrate its capability not only in envisioning monumental projects but also in executing them with unmatched efficiency and foresight. CBNME SUPPLY CHAIN 62 | CONSTRUCTION BUSINESS NEWS ME | JANUARY 2024 WWW.CBNME.COM