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The definitive list of industry influencers THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS JULY 2016 We design.. we construct.. we build.. Kingdom of Saudi Arabia, PO Box 65697 Riyadh 11566 Tel: +966 11 293 1193 Fax: +966 11 293 1170 www.albawani.net Classified Class 1 ISO 9001
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construction business news me July 2016 3 Editor’s note News Contracts Supplier profile MAN Trucks and Doka under the spotlight In Person Greg Kane talks about his new role at WSP | Parsons Brinckerhoff Comment Francois Valois, Director of Product Management at Bentley Systems writes about 3D visualisation 2016 power hour The Top 60 firms influencing the industry, as counted by Construction Business News MAGAZINE 6 8 14 16 20 24 27 27 14 contents
construction business news me July 2016 4 S U B S C R I B E subscriptions@bncpublishing.net CEO Wissam Younane wissam@bncpublishing.net Managing Director Walid Zok walid@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Diarmuid O'Malley dom@bncpublishing.net Group Sales Director Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706 Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 Group Editor Melanie Mingas melanie@bncpublishing.net Editor Jason O'Connell jason@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Sales Manager Mostafa Abdo mostafa@bncpublishing.net +966 56 6695 333 Sales Manager Vishvanath Shetty vish@bncpublishing.net +971 52 6745378 Marketing Executive Mark Anthony Monzon mark@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Construction Business News ME contact sales@bncpublishing.net T +971 55 339 5097 All rights reserved © 2015. Opinions expressed are solely those of the contributors. Construction Business News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Construction Business News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Construction Business News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by International Printing Press www.ippuae.com In person Asif Sayeed Khan, GEnavco GM on the company's 50th anniversary Supplier News Event preview what to expect at BauMA India 2016 Save the Date Editor’s Pick 66 70 74 76 78 20 66 78
Porto Arabia Towers Doha, Qatar ©2014 Hill International, Inc. Hill International The Global Leader in Managing Construction Risk www.hillintl.com For nearly four decades, owners and developers in the Middle East have turned to Hill International to manage their construction projects and programs throughout the region. Hill is proud to have helped our clients turn their most challenging visions into realities. We have participated in over 10,000 projects with a total construction value in excess of $500 billion, managing all phases of the construction process from concept through completion. Hill is also the leading construction claims firm in the world, having helped resolve problems on some of the most complex projects throughout the Middle East and around the world. To minimize risk and maximize results on your next project, turn to Hill International Dubai Office: 971 4 227 0078 Doha Office: 974 4 435 8381 Corporate HQ: 800 283 4088 If you can imagine it, we can manage it. Qatar National Museum Doha, Qatar Mall of Qatar Doha, Qatar Viva Bahriya Towers Doha, Qatar
construction business news me July 2016 6 Top of the Table We’re only at the half way point of 2016 but I’ve no doubt that many in the con- struction sector are already longing to see the back of what has probably been the toughest year for the industry since 2009, when the effects of the global financial cri- sis hit the Gulf. Chief among the companies suffering from the tail off in work brought about by the prodigious drop in oil prices over the past 18 months, are the construction con- tractors that make up the backbone of the industry. Their struggles are reflected in the fact that Saudi Binladin Group (SBG), top of last year’s inaugural Power Hour list of the 60 biggest players in the regional con- struction industry, has tumbled out of the top 10 of this year’s list, presented inside the current issue. The Saudi contractor’s travails have been well documented. With work thin on the ground SBG has been forced to cut costs by laying off thousands of workers in an effort to adjust to the new reality in Saudi Arabia. Other big names on the Saudi con- struction scene, like Saudi Oger, are going through painful times as well. Though three of the biggest contrac- tors around still managed to make the top 10, it’s noteworthy that this year’s list is crowned by a property developer. Mo- hamed Alabbar-led Emaar Properties made a huge splash this year with the announce- ment of a tower that will loom over the world’s tallest building, Burj Khalifa, on the other side of the creek. The unveiling of detailed plans for the Santiago Calatra- va-designed monument signals the start of the giant Dubai Creek Harbour devel- opment. At twice the size of Downtown, the project holds the potential to provide work for many construction companies in the years running up to 2020 and beyond. That Emaar is providing such a boost to an ailing industry is the reason it tops our list. editor’s note Jason o'Connell Editor
construction business news me July 2016 8 For News, features and more, Visit www.CBNme.com Follow us on twitter for breaking news: @cbn_ME Follow us on Facebook for up-to-the-minute breaking news Read the latest edition on www.CBNme.com NEWS Aurecon has been chosen by lead architect Santiago Calatrava as the engineer/architect-of-record to collaborate on a range of design and technical features for Dubai’s The Tower. The supertall skyscraper will be the focal point of Emaar’s Dubai Creek Harbour mega development that will be twice the size of Downtown Dubai. Emaar chairperson Mohamed Alabbar recently revealed in a television interview that the Tower will be around 100 meters taller than the 830 meter Burj Khalifa, which currently holds the record for the world’s tallest building. Adrian Jones, Aurecon’s Project Director for The Tower said: “The Calatrava team were looking to work directly with our experts who have had hands-on project experience on other supertall and similar mega projects. “The Tower will test the craftsmanship of Aurecon as we play our part in making a mark on the built fabric of mankind,” Jones said. “It is an absolute privilege to be entrusted by San- Aurecon to work on The Tower The Tower at Dubai Creek Harbour tiago Calatrava and Emaar Properties to work on this project, and we have assembled a stellar team to bring this idea to life.” Aurecon has assembled its top global experts to contribute to the project, with work being led by the company’s Middle East office with input from offices in Africa, Asia and Australia. Dr Andy Davids, Aurecon’s Tall Buildings Leader, who serves as Aurecon’s Director of Design on the project, said that optimising proven techniques and materials is funda- mental to the project’s success. “One of the secrets with courageous projects is not to use new techniques or materials, but to stick with what you know,” he said. “At the same time, we must work to maximise the poten- tial of those materials and techniques. What’s different in The Tower is that we’ll be pushing the use of these tech- niques beyond current norms to create something unparal- leled, and for us that’s very exciting.” The company will collaborate on a range of design and technical features for the project
construction business news me July 2016 9 Steve Lever is stepping down as CEO of Al Naboodah Construction Group (ANCG) after almost 30 years of service to the company. Recently appointed Chief Operating Of- ficer Colin Timmons will take the reins with Lever staying on to ensure a success- ful handover. Under Lever, Naboodah expanded into new markets while the workforce grew to more than 13,000 employees. Paul O’Flaherty, Group CEO at Al Naboo- dah Group Enterprises (the holding compa- ny of ANCG), praised Lever for his outstand- ing service to the company and the wider Middle East construction sector. “Under Steve’s leadership, the Group has positioned itself as one of the most recog- nised and trusted construction firms in the region, with a reputation for delivering the Al Naboodah Construction names new CEO Dubai Municipality will build a AED 2bn ($550mn) plant to incinerate waste and convert the energy pro- duced into electricity. Construction of the plant will begin in the Warsan 2 area by the end of this month, according to Emir- ates News Agency (WAM). The plant will be op- erational in the second quarter of 2020 during which it will receive 2,000 metric tonnes of munici- pal solid waste per day in the first phase to produce 60 megawatts, said Eng. Hussain Nasser Lootah, Director-General of Dubai Municipality. It will also help the city with its quest to reduce land- fill by 75 percent by 2021 and to cut greenhouse gas emitted from waste. Sumer Contracting Com- pany has won the contract to build Jumeirah Golf Estates’ latest residential project in Dubai. Construction of Alanda- lus - a collection of 674 apartments and 54 town- houses - is set to begin this month with comple- tion scheduled for 2018. “Having previously con- structed a range of luxury projects, Sumer Contract- ing Company was a natu- ral choice for this role, as we create luxury living choices with affordable prices, for a captive audi- ence of buyers,” said You- suf Kazim, CEO of Jumei- rah Golf Estates. The value of the contract was not revealed. Dubai to build $550mn waste to energy plant Sumer Contracting to build Jumeirah Golf Estates project WSP | Parsons Brinckerhoff has acquired an industrial water consultancy from oilfield services firm Schlumberger. The 250-employee business will enable the company to provide services and project solu- tions to industrial clients worldwide and will establish a presence for WSP in Chile and Peru. The acquisition will also add to its presence in a number of countries in which it currently operates, including the United States, the United Kingdom, Colombia and Mexico. The transac- tion is expected to close in the third quarter of 2016, the company said. “The industrial water consultancy team will bring WSP an increased presence in the attrac- tive global water market, more specifically, in the supply, management, control and envi- ronmental protection of water,” said Alexandre L’Heureux, the incoming President and Chief Executive Officer of WSP. The move follows WSP’s recent acquisition of Sweett Group, a UK-based provider of profes- sional services for the construction and management of building and infrastructure projects. WSP | Parsons Brinckerhoff buys water consultancy from schlumberger most prestigious, highly complex and chal- lenging projects – on time and within bud- get,” O’Flaherty said. Over the coming months, Lever will move into a transition role to oversee work in Qatar and continue to manage key clients in the UAE during this period. Incoming CEO Colin Timmons will formally take over full respon- sibility for leading and managing the Al Na- boodah Construction Group from July 1. “Colin’s transition to the CEO role comes after joining Al Naboodah Construction as COO earlier this year in terms of our pro-ac- tive succession planning,” O’Flaherty added. “He has held a number of senior roles with major UK-based construction companies, and for the last five years has been General Manager in Abu Dhabi for Al Faraa General Contracting Co.,” Colin Timmons
construction business news me July 2016 10 NEWS Atkins has launched a new advisory business to help clients manage uncer- tainty and complexity in infrastructure delivery. The end-to-end consulting business - Atkins Acuity - will combine the com- pany’s extensive engineering and master planning capability with new structuring, financing and project preparation exper- tise. Initially the service will focus on the Middle East, South East Asia and Africa markets across Atkins’ core sectors of transportation, energy and infrastructure, the company said in a statement. Atkins Acuity will support international finance institutions, governments, and large corporations through the delivery of engineering-led advisory solutions to target infrastructure development and funding opportunities around the world. This is the first new business to be launched by Atkins, with an aspirational goal of generating approximately GBP 200mn ($283mn) in revenues in around a four to five year period. Senior new hires have been made from organisations including McKinsey, KPMG, Arthur D Little, World Economic Forum, Standard Chartered Bank and the former executive director of the Philippines PPP Unit, adding structuring and financing skills to the deep technical engineering knowledge across the Atkins Group. Uwe Krueger, Atkins’ chief executive officer, said: “Atkins Acuity is a direct re- sponse to our client’s needs to deliver more rewarding and higher-value partner- ships for infrastructure and energy investments. We believe Governments, corpo- rates and financial institutions alike are frustrated at bottle-necks in programmes and a lack of delivery – the Atkins Acuity end-to-end advisory service is designed to help change that.” Atkins launches new advisory service Ajman Sewerage embarks on $20mn network expansion Ajman Sewerage has kickstarted work on a pair of major projects worth a combined AED 75mn ($20.4mn). The first involves construction of a 10km sewerage pressure line between Ajman City and Ajman Sewerage’s treatment plant, while the second is a 40-kilometer sewer gravity network in Ajman’s Al Jurf Industrial Zones 1 and 3. Al Marfaa Contracting Company and Darwish Engineering Emirates will un- dertake the respective projects which will allow the utility to serve an additional 10,000 properties on top of the 130,000 properties it currently serves. Other projects in the pipeline include the construction of a new wastewater treat- ment plant, which was awarded to BE- SIX/Six Construct in 2015 and is expected to complete by end of this year. This will eventually allow treatment of up to 120 million liters of wastewater every day. Dubai-based investment firm Al Ash- ram Investments has signed an agree- ment with logistics company Aramex to build-and-leaseback its new Ex- press Courier Facility in Dubai. Located in Umm Ramool area on Dubai Airport Road, the facility will be constructed by Al Ashram Contracting within seven months at an expected cost of AED75mn ($20.4mn). The new Express Courier Facility would be constructed on a build-to- suit basis as Aramex is the sole occu- pant of the property. This will allow the logistics the free- dom to include its specific require- ments in the construction of the build- ing without owning the property. It has been designed to employ the latest technologies to serve Aramex’s growing customer base more effec- tively and efficiently. Al Ashram Contracting to build Aramex $20mn express courier facility in Dubai Uwe Krueger, Atkins' CEO and Dominic Harvey, CEO of Atkins Acuity (left to right)
Facilities management firm EFS Facilities Services has expanded its offering with the acquisition of SecureP- lus, a UAE-based security company established in 2005. The move follows the recent launch of EFS’ managed security services division, which caters to addressing security needs for a wide range of clients across a va- riety of sectors. SecurePlus’ services include man-guarding, CCTV op- erations, security consultancy, patrolling, lifeguard ser- vices in addition to value added services such as valet and cash-in-transit. Tariq Chauhan, Group Chief Executive Officer for EFS Facilities Services Group, said the acquisition positioned the company as a “one stop solution” for comprehensive Integrated Facilities Management (IFM) requirements. “The strategy of EFS Group is to expand the opera- tions of SecurePlus across UAE as part of the first phase and to later introduce security services operations in other lucrative key markets as a new business sector complementing EFS’ existing IFM operations,” he said. EFS Facilities Services swoops for SecurePlus BAUMA CONEXPO INDIA 2016 December 12-15 HUDA Ground, Gurgaon/Delhi BAUMA GET YOUR TICKET NOW! www.bcindia.com/register Contact: German Emirati Joint Council for Industry and Commerce (AHK), info@ahkuae.com, Tel. +971-4-4470100 Tariq Chauhan, Group CEO of EFS
construction business news me July 2016 12 NEWS KBW Investments has added to its fast growing stable of companies and ser- vices with the majority acquisition of Grayscale Interiors, while the compa- ny has also formed a partnership with French technology manufacturer, As- corel Group. Grayscale Interiors operates out of the UAE and specialises in interior fit-outs for a varied range of projects across sec- tors including hospitality and commer- cial building developments. The agree- ment was signed by KBW Investments founder and chairperson HRH Prince Khaled bin Alwaleed bin Talal and Grayscale Interiors founder and manag- ing director, Dr. Gary Vastag. “After partnering with Grayscale Interi- ors for several projects that required be- spoke interior fit-outs, it was clear that having the company join the KBW In- vestments portfolio would increase our Group’s capability to address projects from the early conceptual development and planning stages, all the way to proj- ect management and execution stages,” said Ahmed Alkhoshaibi, Group CEO, KBW Investments. “Grayscale’s strong focus on business development, industry integrity and best practice implementation, and finally, high quality end product, is exactly the type of venture that appeals to KBW for strategic growth aims,” added Alkhoshaibi. Grayscale has a project roster that in- cludes the UAE, Qatar, and Saudi Ara- bia, with plans to expand now that the KBW majority acquisition is completed. Meanwhile, KBW Investments an- nounced a partnership with French technology manufacturer, Ascorel Group to serve the Middle East and North Africa (MENA) market. Ascorel Middle East will facilitate the sale of Ascorel’s technologies dedicated to the heavy machinery segment in the region. Raimondi Cranes, acquired by KBW in 2014, has used Ascorel’s construction safety solutions for many years. “The integration of Ascorel technolo- gies into the Raimondi Cranes frame- work has given us ample experience with the company, and has allowed us to confidently unite for this new ven- ture that targets the Middle East,” said Ahmed Alkhoshaibi. Ascorel Middle East will commence operations from August, and will be based out of KBW Investments head- quarters in Dubai. KBW Investments builds portfolio Siemens technology controls Dubai's 3D printed building Siemens provided a variety of control systems for the world’s first 3D printed office building located outside Emirates Towers in Dubai. The German company supplied access control and sur- veillance systems which are integrated into one of its central building management platforms. Siemens' Desigo CC building management platform en- ables the control and optimization of the building's tech- nical infrastructure, surveillance, air conditioning and ac- cess control systems from a central location. Worldwide installations of Desigo CC have led to re- ductions in building operating costs of up to 20 percent, Siemens said in a statement. Unveiled in May, the 250-square-meter "Office of the Future" was built using a 3D printer measuring 20 feet high, 120 feet long and 40 feet wide. KBW Investments founder and chairperson HRH Prince Khaled bin Alwaleed bin Talal and Grayscale Interiors founder and managing director, Dr. Gary Vastag
construction business news me July 2016 14 contracts Qatar’s Al Balagh Trading & Contract- ing and India’s Larsen & Toubro (L&T), have won the main contract to build Al Rayyan Stadium, a 40,000 seat venue that will host games up to the quarter- finals at the 2022 FIFA World Cup. After the event the Ramboll and Pat- tern stadium will accommodate 20,000 seats and be home to Al Rayyan Sports Club. Though the value of the project was not revealed, some reports have pegged it in the region of $135mn. His Excellency Hassan Al Thawadi, Secretary General of the Supreme Committee for Delivery & Legacy (SC), said at a signing ceremony: “The impact of this stadium and its surrounding precinct will be felt long before the stadium is finished in 2019, with the recently completed outdoor training pitches set to be used by the current QSL Champions, Al Rayyan Club, for their upcoming Qatar Stars League season. “We are confident that Al Rayyan Sta- dium will become a landmark for the area and benefit the entire community from now until long after the last ball is kicked in 2022.” Al Rayyan Stadium is the fifth stadium design to be launched by the SC, follow- ing Al Wakrah Stadium, Al Bayt Stadium – Al Khor City, Khalifa International Sta- dium and Qatar Foundation Stadium, all in different stages of construction. The SC will also launch the designs of Lusail Stadium, Ras Abu Aboud Sta- dium and Al Thumama Stadium within the coming year and officially launch the completed Khalifa International Stadium in early 2017. Construction of all infrastructure for the 2022 FIFA World Cup is slated to be completed by 2020, two years prior to the tournament. Larsen & Toubro to build $135mn Qatar 2022 fifa World Cup stadium Salini Impregilo awarded $955mn contract in Kuwait A Salini Impregilo-led consortium has won a $955mn contract to build a huge development in Kuwait that will house 400,000 people when complete. The deal, part of the South Al Mut- laa Housing Project, was awarded by Kuwait’s Public Authority for Housing Welfare and comprises the creation of a 12,000-hectare urban development located around 40kms from Kuwait City. The project, to be done by a con- sortium led by the Italian company with a 55% stake, involves construc- tion of 150 km of roads and related structures, lighting, water distribu- tion, drainage, sewerage, electricity and telecoms infrastructure. The Kuwaiti parliament has ap- proved a 2015-2020 development plan that envisages investments to- taling more than $100bn in infra- structure projects in the country, including the construction of thou- sands of homes, metro and railway networks and new refineries and in- dustrial facilities.
construction business news me July 2016 15 Around the region Kuwait Egypt Qatar UAE KSA CSCEC bags $580mn contract for Kuwait university ACC wins $200mn deal to expand cancer hospital in Egypt Arabian MEP contracted for hotel tower at West Bay Nakheel awards $1.1mn Deira Islands contract Bechtel extends contract for KSA industrial cities China State Construction Engineering Corporation (CSCEC) has won a KWD 174mn ($580mn) contract to build and manage a gi- ant education city project - Sabah Al Salem University City - in Kuwait. Under the government awarded contract, the Chinese contractor will be responsible for the construction and operation and maintenance of the administration facilities at the upcoming project. The Sabah Al Salem University City consists of seven buildings to house the administration wing, cultural centre, convoca- tion hall, conference centre, university library and visitor centre besides a grand mosque. Arabian Construction Company (ACC) has landed a $200mn contract to expand a specialist children's cancer hospital in Egypt. First built by ACC and opened in 2007, Children's Cancer Hospital Egypt 57357 is one of the largest children's cancer hospitals in the world. The extension consists of two buildings, an out- patient centre extending over 8,500 square meters and an administrative smart building of 2,500 square meters. Arabian MEP has been contracted by one of the largest listed real estate developers to carry out mechanical installations for a high-rise hotel proj- ect at West Bay, Doha. The project consists of 41 floors including base- ment covering a total built up area of 60,000 square metres. The targeted completion period for the fast track project including mobilisa- tion will be 28 months, the company said without disclosing the value of the deal. Nakheel has awarded a contract for nearly AED 4mn ($1.1mn) for sewage treatment plant (STP) work at Deira Islands in Dubai. Austria-based ILF Consulting Engineers will oversee the design and construction supervision of the STP and lifting station, which are expected to be completed by the end of 2017. The STP will be devel- oped in two stages with the first, covering years 2017 to 2022, designed to handle 20,000 cubic me- tres per day. The second phase, for 2022 to 2042, will have an additional 17,000 cubic metres daily capacity. To date, Nakheel has awarded more than AED 3bn worth of contracts for Deira Islands. Bechtel has signed a five- year contract extension to continue its longstanding management services work at Jubail and Ras Al Khair industrial cities in Saudi Arabia. Over the next five years, the company will focus on providing residential accommodation and edu- cation facilities such as a 18,000-student 'greenfield' university as well as roads, bridges, medical centers, and power, water and waste facilities. Jubail and Ras Al Khair currently employ an estimated 140,000 people, which is predicted to rise to 190,000 by 2021.
construction business news me July 2016 16 SUPPLIER PROFILE S ince 2006, MAN Truck & Bus Middle East has been the re- gional representative of MAN Truck & Bus AG which is head- quartered in Munich, Germany and the largest company of MAN Group. It is a leading provider of commercial ve- hicles and buses that are renowned for their robustness, reliability and adher- ence to high standards of driver and passenger comfort and safety. MAN Truck & Bus Middle East oper- ates through an extensive network of 35 private capital dealers and import- ers in 14 countries namely Afghanistan, Bahrain, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Pakistan, Qatar, Saudi Arabia, Syria, United Arab Emirates and Yemen. The company provides full-fledged turn-key solutions for both goods and passenger transportation by road through its light (TGL), medium (TGM) and heavy-duty (TGS WW) ranges of trucks, and MAN and NEOPLAN buses that provide basic to VIP luxury trans- port and travel requirements. MAN’s operations in the region are guided by Franz Freiherr von Redwitz who is the Managing Director of MAN Truck & Bus Middle East. He has tons of experience gained through work- ing with the MAN Group for the last 17 years in various international sales management roles. MAN Truck & Bus Middle East While MAN products cater to a wide variety of industry segments, its com- petence in the construction industry however combined with its knowledge of the industry are unmatched. MAN’s insights into regional customer require- ments and its superior track record has helped it to be a preferred supplier for the regional construction industry over the years. As turn-key solution for the construc- tion business, MAN offers the tough and resilient MAN TGS chassis from its WorldWide (WW) product family. The vehicles are optimised to meet sector requirements. The MAN TGS WW is a truck for tackling and dealing with ex- treme challenges. These include chal- lenging road conditions and extreme climatic conditions. The variant range includes left and right-hand drive ve- hicles and is available in emission cat- egories Euro 2 to Euro 6. Yet another major area of emphasis for MAN has been in road safety where MAN is partnering with local authori- ties across the region to conduct regu- lar road safety campaigns. Based on MAN’s global experience and research, the company firmly believes that a combination of behavioural and tech- nological measures like telematics can significantly enhance road safety on public roads in the region. MAN has consistently worked with its importers to create a superior ser- vice and sales infrastructure across the region. This has helped immensely in improving the company’s market share. The main objective for the com- pany is to be close to its customers and understand them in order to ex- ceed their expectations. MAN has also been active in customising its products for the region and this has helped the company to gain customers and im- prove its market share. Franz Freiherr von Redwitz, Managing Director, MAN Truck and Bus Middle East “MAN Truck & Bus Middle East operates through an extensive network of 35 private capital dealers and importers in 14 countries” Franz Freiherr von Redwitz, Managing Director
construction business news me July 2016 18 A cknowledged as a centre for the global oil markets, the recent price correction of crude has served as a stark reminder of the GCC’s requirement for a more sustainable ap- proach to all facets of its society, with construction being no exception. With a total value of $172bn, the GCC construction market still represents a significant proportion of spending, and also remains an essential part of the in- frastructure development required for the region’s long-term economic diversifica- tion. With Saudi Arabia reporting a drop in contract awards of 51% and Qatar issu- ing warnings of cost overruns, it is clear to see that stakeholders across the GCC must find ways to maintain their liquidity until the market is able to recover, which ac- cording to the recent MEED Construction Leadership Summit is likely to be in 2018. Doka has long understood that in- vestment in sustainability isn’t just a more responsible approach for the en- vironment, but furthermore a way to create greater efficiencies in its busi- ness models, the benefits of which can be passed to its clients. Established in 1990, Doka’s research and development facility in Amstetten, Austria was created to generate high qual- ity products and systems that save time and energy while ensuring the highest standards of safety are maintained. A great example of how Doka ensures its products can go further can be found in its reconditioning facilities where used formwork is professionally cleaned and inspected. Reconditioning is only made possible providing the products and sys- tems are made to be durable in the first place, which is why all Doka products are ISO 9001 and ISO 14001 certified, ensuring a long life cycle while being re- source sparing from a manufacturing and logistical standpoint. Forming a competitive market for sustainability As spending across the GCC advances cautiously, the role of sustainability is now an intrinsic part of the Gulf construction market, and an element that remains at the core of Doka’s values. As a company that has a presence in more than 70 countries around the world, Doka’s logistics must also be extremely well organised in order to react to the re- gional market demand. As part of its sus- tainability structure, Doka uses an online global network which allows for products and systems to be moved between logisti- cal hubs when required, helping to cut down the waiting time for products and services while reducing carbon dioxide emissions in the long-term. As far as products, Doka’s most recent innovation; Concremote, is an award- winning sensor that provides up-to-the minute information about the compres- sive strength and durability parameters of concrete, meaning cycle times can be im- proved up to 47%, producing an average cost saving of 32%, making projects more sustainable for its clients. As a device which can be set into slabs, walls, col- umns, rafts and mass concrete structures, results are available directly to the project manager’s smartphone or tablet device meaning deshuttering can commence the moment it is safe to do so. Of course not all sustainable actions are related to products and systems, but to the most crucial elements of a company, its people. Doka’s highly structured training system has been de- signed to promote a solution-oriented culture that encourages staff to become highly motivated team players, the re- sults of which have shown to provide above-average corporate loyalty. While many companies throughout the GCC support the idea of sustainability initiatives, Doka understands that the em- phasis on sustainable business is already a significant factor in remaining competi- tive in a market that demands the highest standards for the most competitive price. Doka is committed to sourcing timber through PEFC regulations. User safety is another top priority at Doka Group. SUPPLIER PROFILE
construction business news me July 2016 20 Greg Kane was recently promoted to head the Middle East division of leading consultant WSP | Parsons Brinckerhoff, replacing Tom Bower as managing director. As he approaches a decade in Dubai, the 39-year-old Dubliner spoke to Jason O’Connell about completing the integration of the newly merged company, while managing the challenges and opportunities presented by a regional construction market in a state of flux. Change at the top In person Greg Kane
construction business news me July 2016 21 Congratulations on the recent promotion. Was it unexpected? Not entirely. I was recruited three years ago to join the old WSP as operations director. There was always a succes- sion plan of sorts but succession plan- ning doesn’t always go as planned! Tom leaving the business was to some people a bit of a surprise, to some of us not such a big surprise. Following Tom’s departure was a process where- by our global COO reviewed the peo- ple in the business that he felt were worth considering and then selected me to take the role. What’s top of your in tray in the new role? The first thing to do and the message I’ve shared internally is to reinforce our global strategy which focuses on four elements: people, clients, exper- tise and operational excellence. The first two of those are very, very impor- tant. Since I was appointed I’ve been going to as many of our offices as pos- sible and having one on one time with people but also speaking with large groups and then getting out and see- ing clients. A lot of our existing clients are curi- ous to know what the change might mean so I’m spending time seeing those clients and making sure that they’re comfortable with the change. I’m also taking the opportunity to re- connect with some clients that we’ve not seen recently. I’m not looking to make massive changes but following the integration between WSP and Par- sons Brinckerhoff, we came up with a new business strategy and a new busi- ness structure around 15 months ago so now is a good chance to take stock and ask if we got those things right first time. We’ll probably make a few tweaks. It’s more about small incre- mental change as opposed to any rad- ical reshaping of the business which we did about 15 months ago. How is the integration going? Starting January 2015 we put a huge amount of effort into trying to integrate as much as we could. And I would say, from a mechanical side of things, we are close to 100 percent integrated. We all work in the same offices off the same platforms. We’ve rebranded the entire business WSP | Parsons Brinck- erhoff. Things like culture and way of working take a little bit longer. I think we’ve made good progress but a year and a bit in it’s still a work in progress. WSP was more known in the verti- cal infrastructure space whereas Parsons Brinckerhoff would have been more known in horizontal infrastructure – trans- portation, roads, highways, etc. That’s why the two businesses coming together made so much sense. There wasn’t a huge amount of overlap where we were bring- ing together duplicate resources and skills. And in the Middle East in particular, with the exception of some infrastructure de- sign areas, we had very little overlap. The Living Wall, Al Barari
construction business news me July 2016 22 As a result of the two businesses coming together last year we had zero front office technical people leave the business. Back office business support – finance, HR, IT - we did have some rationalization as you would expect. We came together as two equal sized businesses so we’re now a business twice the size. Both companies saw a lot of growth in recent years even prior to the merger. What was behind that? Pre integration WSP grew 40 percent in 2013 and again in 2014. 2015 was a challenging year for most business- es in the region. Parsons Brinckerhoff also grew in that time. The market im- proved from 2012 onwards and a bit of confidence came back to Dubai and the region. That growth was built off a really strong focus on our people, mak- ing sure we got the best people and retaining them and focusing on deliver- ing quality products to our clients - the type of service that our clients want to come back and procure more of. How do you meet the challenges of the current market? It’s a slightly more challenging market than previous years but my sense is there are still good opportunities out there. Obviously we’ve got Expo in Dubai which is driving a lot of prop- erty and building work which we feel we’re well positioned to deliver and we’re doing that as we speak. The oil price and the impact that that’s hav- ing means governments are being cautious, as you can understand but we have seen a slight recovery in the oil price and with that brings a little more confidence. And maybe if oil prices remain closer to current levels than previous levels that will drive a different way for governments to pro- cure their infrastructure. The region still has a latent demand that needs to be delivered in terms of infrastructure and buildings. You have things like Expo and the World Cup and governments releasing stra- tegic visions. That all indicates that things are moving and happening and leaves me feeling a little more posi- tive than say 12 months ago. Which countries and sectors are suffering the most and which are not doing too badly? We’ve seen a level of activity in Dubai in the last six months. Some of the projects around Expo have meant more work for us but they’ve also meant more confidence. Qatar has been slow for us for the last 12-18 months but we are seeing things starting to move a lit- tle. And Qatar still has big ambitions to deliver a lot of infrastructure ahead of the 2022 World Cup. Saudi Arabia is an area of our busi- ness that has not been as active as other countries but we are interested in KSA. We have a new country lead director who’s been there since the start of the year. He’s been exploring prospects and we feel positive we will have a role to play in KSA even with oil at lower levels than in the past. We’ve seen a new strategic vision for 2030 and we feel that’s going to bring opportunities and client needs that we can serve. It’s early days but it’s ambitious which is positive because it presents opportuni- ties for our industry. The way of doing things in Saudi appears to be changing so we are exploring there more so than in previous years. Saudi is the most obvious example of the change in oil prices leading to a shake-up in how some things are done. Are we going to see a switch to alternative methods of financing, for example PPPs? There’s certainly more discussion around PPP. One theory is that this re- gion as it matures will move to means of procurement which are the norm in more mature economies. PPP is a method of procurement that has been prevalent in places like the UK, Cana- da and Australia for many years. Will it gain traction in the Middle East? My sense is that it or a version of it wheth- er it’s PFI or other forms of alternative finance will become more relevant in the Middle East than in previous years. Again, it’s related to the oil price but In person Sheikh Mohammed Bin Rashid Solar Plant
construction business news me July 2016 23 it’s also related to the region and the economies maturing. PPP implies more design-build type opportunities. With design build comes different opportu- nities than some of the projects we’ve worked on in the past. So yes, it does seem like a natural next step for the region as it continues to develop. We seem to be seeing a shift to renewable energy projects in the region. Is it fair to say it’s reached a tipping point here and do you expect to be doing more work in that area in the coming years? I’m not sure if we’ve reached a tipping point yet but I definitely sense that we’re on the journey to it. There’s an inevitability to renewables to an ex- tent. Whether we ever become reliant on renewables for base load power is debatable but we’re definitely on that journey. WSP | Parsons Brinckerhoff was involved in the Mohammed Bin Rashid Solar Park phase 1 and now you’ve got phase 2 being developed. I just see that continuing. The region has an abundance of opportunity around solar power. It’s becoming more and more commercially viable so there is definitely a shift towards it and I see opportunity for us in that space. With the integration of Parsons Brinckerhoff came a big power business with a very rich heritage. What other radical changes are we likely to see? Some of the strategic plans that the governments in the region are coming up with are going to present a myriad of opportunities because it’s going to impact so many things – power, infra- structure, rail – a host of opportunities and enough for our industry to wrap its arms around. We have a role to play in supporting these governments de- liver what they need to deliver. And we need to be sensitive and listen to what they are trying to do and find a way to play a part. Our industry has played a huge role in this region over the last 40- 50 years and I see opportunities to con- tinue doing that. Things like alternative power and procurement are perhaps just the tip of the iceberg. I’m sure the region will continue to present oppor- tunities. And we have things like Expo and the World Cup which are not small things to deliver and we have a big role to play helping to deliver those visions. Beyond 2020 – 2022 what will drive the regional economies? The one thing I do expect is for this region to maintain its level of ambition. As long as I’ve been here this region has been very ambitious in what it wants to achieve. It’s always set very high goals and largely has delivered them. If you look at the region to- day compared to 10 years ago when I arrived, it’s a massive transformation. That level of ambition and vision and drive, I don’t expect that to change. What that will bring, whether it’s more events or strategic visions for 2030 or 2040, I don’t know but I do expect the level of ambition to be undiminished. What projects are you involved in at the moment? We’re involved in a large number of projects across the region, some of them incredibly important. We’re in- volved in big power projects in Ras Laffan in Qatar and some others in Saudi Arabia. More visually we are the lead consultant for the Dubai I observation wheel on Bluewaters Is- land which is making good progress and we’re going to see the wheel starting to be erected in the next few months. The spindle was lifted into place a couple of weeks ago which broke a number of records. Some of our guys were working night and day in the run up to it to make sure that everything went well. Once that starts to take shape that’s a very visual dem- onstration of the level of ambition that this region has and when it’s finished it will be an amazing project and one that we, along with others that worked on it, are hugely proud of. We’re also the lead consultant for the retail com- ponent of the Bluewaters Island and the whole thing is going up very fast. It’s a very clear example of how quick- ly things can happen in this region. Bluewaters Island
construction business news me July 2016 24 COMMENT mately 1 meter by the phone GPS without any ground control points). Using an airborne UAV flying at 120 meters, with survey grade ground control points and a good camera, ac- curacy of a few centimeters (between 6 and 7 cm using that drone) is pos- sible. Reality Mesh A reality mesh is essentially a fully textured multi-resolution 3D mesh of the object or site you have photo- graphed that can be displayed in a number of software packages. All Bentley design applications, includ- ing MicroStation, InRoads, GEOPAK, MXROADS, OpenRoads Designer, and OpenRoads ConceptStation are 3D Vision Francois Valois, Director of Product Management Civil at Bentley Systems on using the company’s solutions in Roadway Conceptual Design and the Construction Bidding Process model in the right location on the globe. How precise and accurate these models are depends on a number of factors, but experience tells us that the resulting accuracy of the real- ity mesh can be equivalent to two times the pixel size of the images used in the processing. The preci- sion depends on the resolution of the camera, the distance to the object or site, and the quality of the camera. The absolute accuracy (exact location on the globe) depends on the GPS on the device and on the accuracy of the control points. Using a smartphone, you can get a precision of half a centimeter (ab- solute accuracy is limited to approxi- A cquiring precise 3D reality models of exist- ing conditions using photographs taken with a simple camera, even the one on your smartphone, is now possible thanks to the advance- ments made in 3D photogrammetry, technology that allows you to process simple photographs to build a num- ber of very compelling outputs called reality meshes. Bentley’s offering in this space is ContextCapture, which converts im- ages taken with a hand-held cam- era into a model to create stunning results. ContextCapture uses GPS devices and/or ground control points to correctly scale and geo-locate the Francois Valois
construction business news me July 2016 25 able to display this type of 3D reality model. Reality meshes are accurate enough to serve as a base for your design. For example, if you are working on a large interchange re-modelling proj- ect, you have to watch for potential obstacles that might get in the way of the new infrastructure and that need to be de-constructed, moved and replaced. A reality mesh contains all of that information. It also contains the bare earth surface information and using applications like Bentley Descartes, you can now very simply extract that information from the real- ity mesh. Leveraging the reality mesh in the conceptual design stage is a great start, but you also need a conceptual design package, such as our recently intro- duced OpenRoads ConceptStation. This application leverages the most advanced Bentley technology and the most powerful calculation engines accessible using a clean user interface, making this product immediately us- able with almost no learning curve. OpenRoads ConceptStation con- sumes the reality mesh and you simply use this mesh to provide the context for the design. The real- ity mesh created from photos using UAVs or hand-held devices is perfect for conceptual design as it combines relatively low cost, a sufficient level of accuracy, and offers new informa- tion generally not available at this early phase. Having a reality mesh that contains information about the context is clearly important for mak- ing better decisions at the conceptual phase. In addition, increased public understanding in the early stage is critical to having the project accepted by the public and reduces the per- ceived impact on the community. How to use reality mesh in the construction bidding process Unfortunately, on many construc- tion projects contractors receive 2D paper plans and not much more to bid on a project. Understanding those plans fully is challenging on its own not to mention the context in which this construction has to take place. Bentley’s ContextCapture can help contractors very quickly and accurate- ly capture information about existing conditions, which helps them plan the work. With OpenRoads Concept- Station, it is possible to re-model 2D plans in a fraction of the time that it would take with a standard CAD ap- plication. Although this model is not the final design, it is perfect to make deci- sions about clearance, phasing, and maintenance of traffic strategies. The reality mesh, along with the newly re- modeled engineering sketch, can help the contractor identify high-cost items early, such as where large structures are, how many are there, and what obstacles you will face when trying to operate heavy-civil equipment on the project. If the client allows alternative technical concepts, the contractor can easily use ConceptStation to look at different options and new approaches to meet the technical requirements and identify ways to lower the cost of the overall project. This process enables the contrac- tor to bid on more jobs that are not easily manageable through traditional techniques, and to potentially win more work by being able to look at more options than their competitors. Lastly, using the embedded real- time rendering LumenRT engine, ConceptStation allows you to easily communicate with project stakehold- ers ensuring faster acceptance of the proposed solution. Reality modeling in the roads and highway sector In the roads and highway design process, surveying is very challeng- ing especially in the Gulf region where high temperatures in summer impact the amount of time it can take surveyors to collect survey data from the ground. Using ContextCapture, surveyors are able to collect survey data using a drone, thereby reducing resource hours and time. ContextCap- ture also allows road and transporta- tion authorities as well as municipali- ties to improve their decision making and plan their future projects after understanding the current conditions of their existing infrastructure. For surveyors, it enhances their produc- tivity by reducing the time consumed on the sites. The technology helps consultants and contractors enhance productivity, reduce the time con- sumed in the survey process, and reduce the amount of site visits to verify their design in the real environ- ment, saving on cost and resources. A reality mesh combined with the design displayed in the embedded LumenRT real-time rendering engine
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construction business news me July 2016 27 T he 2016 Power Hour is the executive rundown of the contractors, developers and industry innovators who have shaped the construction industry over the last 12 months. While the last year has been one marred with low oil prices and a subsequent impact on govern- ment spending and infrastructure development, the scale of ambition behind those projects which have been an- nounced has shown no such slowdown. Deira Islands and the Dubai Metro extension; Doha Metro; Sabah Al Salem University City, Kuwait and dozens of others. In fact the pipeline of projects planned in the GCC as of May of 2016 amounts to $2tr. In Saudi Arabia investment exceeding $29.8bn will be made in airport infrastructure by 2020, and the construc- tion of six smart cities by 2025 at a cost of $109bn are said to be sufficient enough to ensure the continuous growth of the Saudi construction industry. Similar stories echo around the GCC. In the Power Hour 2016, the showcased projects and achievements have taken into account each company’s story, leadership and influence, its achievements and ambitions. Construction Business News has ranked each company based on overall performance, project delivery and market reputation in order to compile this definitive count down.
construction business news me July 2016 28 Power 60 1 Emaar Properties Mohamed Alabbar, chairperson T he year started badly for Emaar with one of its flagship hotels going up in flames in Downtown Dubai as the world watched on. Less than six months later it was making global headlines for the right reasons as it announced plans to build the world’s tallest tower as part of its enormous Dubai Creek Harbour mega develop- ment. That is why Mohamed Alabbar-led Emaar rises three places from last year to top our power list. At 6 square km Dubai Creek Harbour will be over twice the size of Downtown Dubai and include high end residential, hospitality and retail centered around a $1bn monument 100 metres taller than Burj Khalifa. Emaar is also currently putting the finishing touches to Downtown with the Dubai Opera house and a series of new hotels and residential towers. Ongoing projects in the area include The Address Boulevard Dubai; The Address Fountain Views I, II and III; The Address Sky View; Vida Residences Downtown Dubai; BLVD Crescent; BLVD Heights; Boulevard Point; Burj Vista and Downtown Views. The company expanded its hospitality division this year with the first Rove Hotel, a joint venture with Meraas, with plans to have 10 of the mid-market hotels by 2020. With a footprint that spreads well beyond its home turf in Dubai and even outside the Middle East, Emaar posted an 11 percent rise in full year net profit to AED 4.08bn off the back of a 33 percent jump in sales. First quarter 2016 net profit of AED 1.205bn ($1.11bn) was 17 percent higher than the same period of 2015. Following the release of the first quarter results, Chairperson Mohamed Alabbar, said: “Property sales in Dubai and other key international markets have gained momentum, a testament to our differentiating strength in offering the right property of choice for investors in premium locations. “We are building on this positive trend by developing premium projects in exceptional locations, especially in Dubai, to establish the city as a global leader in all sec- tors, and to complement the preparations for the Expo 2020 Dubai. This is highlighted by the launch of the icon- ic new tower in Dubai Creek Harbour and the planned opening of Dubai Opera in Downtown Dubai this year. Both will serve as magnets for investors and visitors.” Projects: • Dubai Creek Harbour • Downtown Dubai • Dubai Marina • Dubai Mall • The Address Hotels and Resorts
construction business news me July 2016 29 2 SAK Holding H.E. Sheikh Thani bin Abdullah Al Thani, Chairperson U nder the leadership of H.E. Sheikh Thani bin Abdullah Al Thani, SAK Holding is on its way to becoming one of the leading companies in Qatar, with major investments in line with the Qatar National Vision and Devel- opment Strategy. SAK Holding includes the SAK Real Estate, SAK Trading and Contracting, SAK Partnerships, and SAK Security Services. SAK Partnerships Company serves all types of real estate investors, and develops the best investment opportunities, that will achieve the highest revenues; to benefit the real estate sector and the economy. SAK Trading and Contracting Company includes practices such as general construction of buildings, contracting, electrical work, general maintenance, and trading in electrical tools, furnishing, household furniture, carpet trading and construction equipment. H.E. Sheikh Al Thani is a leading Qatari businessman with diverse business interests in- cluding banking, real estate, insurance, healthcare, media and sports sectors in the region. In October 2012, H.E. Sheikh Thani was presented with a Lifetime Achievement Award for his contribution to the development of the real estate sector and the economy of the State of Qatar over the years, at Ernst & Young’s “Growing Beyond Summit 2012.” SAK Holding picked up the award for Industry Ecosystem Innovation at the Construction Innovation Awards Qatar 2015. Projects: • Al Shamal Hotel in Doha, Qatar • White Square Tower in Doha, Qatar • Ezdan Mall in Doha, Qatar • Burj Al Khayarin in Doha, Qatar • Al Wakra Mall in Doha, Qatar Construction Innovation Awards 2015 winner
construction business news me July 2016 30 3 China State Construction Engineering Corporation (CSCEC) Yu Tao, President and CEO (Middle East) W ith the encouragement of the Chinese government and financing assistance from the Export-Import Bank of China, CSCEC branched out as a builder and investor of overseas projects, becoming China’s largest con- struction contractor. The company is well known for undertaking super high-rise, super scale construction, cutting-edge and novel projects. CSCEC opened its first overseas office in Kuwait in the late 1970s and has grown from strength to strength in this region ever since and now employs around 15,000 workers. The Yu Tao-led company made its debut in Dubai in 2005 working on villas on Palm Jumeirah. From there the company started to take large and more complex orders like Sheikh Khalifa Special- ist Hospital and the Doha Tower in Qatar. Most recently winning a $580mn contract in Kuwait to build and manage a giant education city project - Sabah Al Salem University City. Among the high profile jobs it is carrying out at the moment is probably its work on the midfield terminal building of Abu Dhabi Airport where it has done the infrastructure and is the specialist in the steel structure and mechanical package. CSCEC is also carrying out work related to the Dubai Canal extension. In all it has com- pleted over $5bn worth of projects in the Gulf. Projects: • Abu Dhabi Airport Midfield Terminal Building • Dubai Water Canal • Palm Villas • Doha Tower • Meydan Racecourse Power 60
construction business news me July 2016 31 T AV Construction is a member of the TAV Group, founded in 1997 when two leading Turkish conglomerates, Tepe Group and Akfen Holding teamed up to bid on (and be awarded) the BOT contract for the new Istanbul Ataturk Airport. The immediate aim of the company was to pur- sue the first airport in Turkey to be developed under privatisation with the BOT model. Meanwhile, the broader vision was to branch out into airport construction, financing, operations and related consulting and management services in the global arena. Since then TAV Construc- tion has worked on 16 airport projects in the MEA region with a total project value to date of more than $17bn and 30,000 employees. Currently the company is engaged in various global projects such as construction of Abu Dhabi Airport Midfield Terminal Com- plex in United Arab Emirates, Riyadh King Khaled Airport Terminal 5 in Saudi Arabia, Jeddah King Abdulaziz Airport Aircraft Maintenance Hangars, and Muscat Airport Infrastruc- ture Works in Oman. In January of this year TAV was awarded the new terminal construction tender for Bahrain International under a JV with Arabtec. The project is valued at $1.1bn and is the largest construction project won by a Turkish company in Bahrain. Boasting a built-up area of 220,000sqm, the new state-of- the-art terminal will increase from current yearly capacity of 4 million to 14 million passen- gers. The terminal is planned to be completed in 51 months and has been designed to meet LEED Gold criteria. TAV’s non-aviation projects include Marina 101, Dubai; DAMAC Towers by Paramount; Emaar Square, Istanbul; Sulafa Tower, Dubai. Projects: • Istanbul Ataturk Airport • Prince Mohammad Bin Abdulaziz Airport • Marina 101, Dubai • DAMAC Towers by Paramount • Emaar Square Istanbul 4 TAV Group Dr Eng Sani Sener, President
construction business news me July 2016 34 5 Egyptian Steel Ahmed Abou Hashima, Chairperson and CEO E gyptian Steel’s new steel plant in Beni Suief has started cold com- missioning and will have a grand opening event in September. This plant is the first of its kind in the Middle East and Africa, using eco- friendly technology. It’s also the biggest of its kind globally, producing 830,000 tons annually, while the only two other plants in the world using the same technology each produce 250,000 tons only. The plant has put Egyptian Steel on the global map as the biggest manufacturer of green steel, which will be the future of construction. The company has also established Egyptian Cement and applied for a license to produce 2 million tons per year, a first step in expanding into other building materials besides steel and part of its vision to become a one-stop shop for all building materials. Demand for steel in Egypt remains high with a long pipeline of infrastructure and development projects that will require steel. Ahmed Abou Hashima, has an optimistic outlook for the Egyptian market: “During the upcoming year we will launch production in our 4th steel plant, which is identical to the Beni Sueif plant in technology and produc- tion capacity but located in the city of Al Ain Al Sokhna on the Red Sea,” he said. “With the launching of this plant the total production capacity of Egyptian Steel Group will reach 2.3 million tons per year, enabling us to acquire 20-25% market share. Yet, with still being the sole producer of green steel in the region, and the biggest globally.” With the launching of this plant the total production capacity of Egyptian Steel Group will reach 2.3 million tons per year, enabling us to acquire 20-25% market share Power 60
construction business news me July 2016 35 C CC’s origins go back to 1952 when three entrepreneurs, the late Kamel Abdul-Rahman, the late Hasib Sabbagh, and Said Khoury, joined forces to create one of the first Arab construc- tion companies. From its beginnings, CCC has become the largest engineer- ing and construction company in the Middle East. Today CCC embraces the ambitions and welfare of over 110,000 employ- ees composed of over eighty nationalities, in almost every country of the Middle East, Africa, Europe (including Russia), CIS countries, the Caribbean, Austra- lia and Papua New Guinea. In May this year, CCC was awarded the $1.4bn contract to build key stations for Doha Metro after the consortium contract with Samsung C&T, Obrascon Huarte Lain (OHL) and Qatar Building Company was terminated. The company is in- volved in more than 50 projects within the GCC, Africa, Australia, Kazakhstan, and Southeast Asia with recent projects including the $10bn Riyadh Metro project, the $3bn Abu Dhabi Midfield Terminal in a joint venture with Arabtec and TAV, $300m road- works in Oman, and the $4bn Kuwait Oil Company’s (KOC) Lower Fars heavy oil develop- ment with Petrofac. The company’s other projects include the $800m Abu Dhabi Plaza in Astana, Kazakhstan, in conjunction with Arabtec; projects in Basra, Iraq; power plant projects in Thai- land; and pipelines in Australia. One of eight arms of the CCC Group, construction operations are supported by CCC Under- water, CCC Oil and Gas, ACWA Services Ltd, Morganti Group Inc, Silicon Oil and Gas, NPCC, Wood Group CCC Ltd. C omprising four divisions – Meraas Development, Meraas Capital, Meraas Estates and Duvent – the Dubai-based integrated developer was estab- lished to “make a positive contribution to the National economy”. Chaired by HE Abdulla Al Habbai, Meraas Holding will execute its mission through a number of subsidiaries that en- compass a wide range of industry specialisations to develop activities and operations across the UAE and abroad. Meraas capital has been instrumental to this, making international investments in more than 2.8 million square feet of commer- cial space and attracting FDI to the UAE. By creating a portfolio of investments in various industry sectors, Meraas seeks to generate long term wealth enhancement to the economic and so- cial development of Dubai. In order to capitalise on opportunities in Dubai and beyond, Meraas is pio- neering several initiatives in various macro-economic sectors including tourism, leisure, real estate, development and asset management with Meraas Hotels and Resorts and Meraas Healthcare both launched over the last year. Bringing a new approach to urban planning and communi- ty enrichment, Dubai projects to date include Pearl Jumeirah, The Beach, CityWalk, Bluewaters, BOXPARK and Bulgari Resorts and Residences, among others. As much a developer as an innovator of social space, Meraas has also recently launched engagement initiatives such as Dubai Walls – where the creative works of 15 of the world’s top street artists will be painted into the walls of Citywalk – and The Green Planet bio- dome, a tropical forest with its rich biodiversity of over 3,000 plants and animals, also located at Citywalk. Projects: • Riyadh Metro • Abu Dhabi Midfield Terminal • Oman roadworks • Kuwait Oil Company’s Lower Fars heavy oil development with Petrofac • Abu Dhabi Plaza in Astana, Kazakhstan Projects: • Pearl Jumeirah • The Beach, JBR Dubai • CityWalk • Bluewaters Island • BOXPARK 6 7 Consolidate Contractors Company (CCC) Samer Said Khoury, President E&C Meraas Holding HE Abdulla Al Habbai, Chairperson
construction business news me July 2016 36 Power 60 8 9 Arabian Construction Company (ACC) Ghassan Merehbi, Chairperson Mulk Holdings Shaji Ul Mulk, Chairperson F ounded in Lebanon in 1967 by the Merehbi and Mikati families which still own and run the business, Ara- bian Construction Company (ACC) has grown to become one of the Middle East's leading construction contrac- tors and has built some of the region’s most iconic projects. From Sheikh Zayed Grand Mosque in Abu Dhabi to large scale energy projects to some of Dubai’s tallest skyscrap- ers such as Almas Tower, Princess Tower and Rose Rotana, ACC’s project portfolio is impressively diversified. Among the most recent contracts the company has clinched is a deal to build a new 150-metre tall tower in Downtown Dubai. The Skidmore Owings & Merrill designed building will be home to Mashreq Bank. In the first half of this year ACC also landed a $200mn contract to expand Children's Cancer Hospital Egypt 57357, one of the largest children's cancer hospitals in the world. It also clinched the construction contract for the Emaar Residences develop- ment in Jeddah Gate, having previously been awarded the deal for Emaar Square, a dedicated commercial precinct in Jeddah Gate. ACC opened its first office in Abu Dhabi in 1969 followed by offices in Dubai, Qatar, KSA, Jordan and Egypt. More recently it has begun to expand operations into India as demand for quality high-rise construction projects has grown in the country. M ulk Holdings is a global business with diversified interests in building materials and construction, plastics, energy, healthcare, real estate, commodities and Sports management. Founder and chairperson Shaji Ul Mulk has built a thriving presence for the UAE based Mulk holdings in more than 50 countries with a workforce of 7,500 mem- bers worldwide. Mulk Holdings has active branches/group companies across the regions of USA, Europe, Middle East, Africa, India, Malaysia, China and Sri Lanka. Starting out from 1982, Shaji Ul Mulk has 32 years’ experience in the business landscape of UAE, as an entrepreneur. He has built a billion dollar enterprise with core businesses growing at a rate of 31% as of end of 2015. The company has grown organically by acquiring projects in Renewable Energy –Africa and India, building contracts in Saudi Arabia, Africa; and the prestigious Ajman Sports City Project. With an eye on the future, Mulk has made strategic investments in new tech sectors like aeronautics and Nano technology. The flagship brand of the group is Alubond usa, an aluminum composite cladding product developed in USA. Award- ed as one of the world’s 100 greatest brands, Alubond usa is the largest aluminum Composite Panel Brand in the world, with an installed manufacturing capacity of 25 million square feet and installations in more than 90 countries around the world. Projects: • Sheikh Zayed Grand Mosque, Abu Dhabi • Mashreq HQ, Downtown Dubai • Gate Towers, Abu Dhabi • Emaar Residences, Jeddah Gate • Jabal Omar Development, Jeddah
construction business news me July 2016 37 D ubai-based Danube Group almost doubled its turnover to AED 5.13bn ($1.4bn) in 2015 compared to AED 2.8bn a year earlier and is forecasting further growth of 15 to 20 percent in 2016 as it eyes more opportunities in the affordable housing sector. The Rizwan Sajan-led company’s property wing expects to launch three to four low cost developments per year in a bid to cash in on burgeoning demand for low cost housing in Dubai. Danube has launched six affordable resi- dential property developments to date, the most recent being Glamz by Danube. “We started the properties division with a clear focus on the affordable housing segment,” Sajan says. “We identified the gap that existed in the market which was too focused on luxury and super-luxury segments while the mid-income popula- tion was left untouched.” He added: “I do not build properties worth billions; I only build low-cost properties which do not exceed AED 500 million in value.” Best known as a leading supplier of building materials, Danube plans to invest AED 200mn to open six new retail stores in the region in the near future, bringing its total number of stores to 50. 10 Danube Group Rizwan Sajan, founder and chairperson Projects: • Glamz Residence • Dreamz Residence • Glitz Residence 1, 2 and 3 • Starz Residence
construction business news me July 2016 38 11 12 AECOM David Barwell, chief executive, Middle East and India Atkins Simon Moon, Chief Executive Officer, Middle East & Africa L os Angeles-based AECOM designs, builds, finances and operates infrastruc- ture assets for governments, businesses and organisations in more than 150 countries. A Fortune 500 firm, AECOM companies had revenue of $18bn during the 12 months ended September 30, 2015. Among the major Middle East projects AECOM has completed in the past 12 months is the Taweelah Aluminium Extrusion plant (TALEX) plant located in Khalifa Industrial Zone Abu Dhabi (KIZAD). This is the largest aluminium smelting plant in the Arabian Gulf. Despite 150 variations post contract award, AECOM’s project manage- ment team maintained the delivery schedule, executing nearly 90 percent of construction in just 16 months. AECOM is a major player in the ongoing Midfield Terminal Building project having been involved since the early stages, providing construction management, construction supervision, cost man- agement and sustainability services. Specifically it is responsible for the construction aspects of the Midfield Terminal building as well as the associated air and landside infrastructure. In total, 19 packages are included within the project, including managing cost, scheduling, quality and health and safety. The consultancy says it is looking to build on its integrated offering by further developing its Design, Build, Finance, Operate (DBFO) model in the Middle East where it employs over 4,000 full time staff. In a market where clients are reprioritising projects, this model is particularly appropriate; by identifying, learning from and managing potential risks and opportunities at the earliest opportunity, costs across the asset lifecycle can be reduced, the company says. This end-to-end offer can also significantly reduce the time taken from project conception to project completion, thereby increas- ing the speed to market. C onsultancy Atkins employs nearly 2,500 people in the Middle East where it has been operating for more than 40 years and has been behind some of the region’s most high profile projects, including the Burj Al Arab, Dubai Metro, Yas Waterworld, Almas Tower (JLT), Bahrain World Trade Center and Durrat Al Bahrain. The future for the business is equally exciting as it continues to play a key role in major transforma- tional projects. This year will see the opening of the Atkins-designed Dubai Opera in Downtown Dubai, which will bring a new level of cultural entertain- ment to the city. In Riyadh and Doha, the company is playing a key role in delivering major new metro projects while in Oman, the Port Sultan Qaboos Redevelopment will turn Muscat’s current commer- cial port (Port Sultan Qaboos) into the Sultanate’s premier waterfront destination. Group revenues for the year ended 31 March 2016 amounted to GBP 1.86bn ($2.72bn), up by less than 1 percent on the same period a year earlier. However Middle East revenue jumped by 15 percent year on year to GBP 248.3 ($363m). Ramesh Krishnasamy won Young Engineer of The Year at the Construction Innovation Awards Qatar 2015. Simon Moon, Chief Executive Officer, Middle East & Africa: “We’ve had a good year across the Group and it’s especially pleasing to have performed strongly in the Middle East, during what continue to be challenging times in many of our markets because of the impact of sustained low oil prices. We’ve seen some very good progress on key proj- ects such as Riyadh Metro and Dubai Opera, which will be a high profile new cultural attraction for the region when it opens to the public later this year. Looking ahead, we see continued opportunities to add value to our clients through delivery of their most complex major projects and programmes.” Projects: • Al Maryah Central, Abu Dhabi • Etihad Rail Stage 1 • Dragon City Mall • Jeddah Metro • Midfield Terminal Complex, Abu Dhabi Projects: • Burj Al Arab • Dubai Opera • Port Suntan Qaboos, Muscat • Riyadh Metro • Doha Metro Power 60 Construction Innovation Awards 2015 winner
construction business news me July 2016 39 13 14 Saudi Binladin Group Engr. Bakr Mohammed Binladin, Chairperson Drake & Scull Khaldoun Tabari, CEO and Vice-Chairperson I t’s been a turbulent 12 months for the Saudi Arabian construction sector as new work has all but dried up while the kingdom contemplates ways to adapt to the harsh new reality of low oil prices. Perhaps no company has suffered more than Saudi Binladin Group (SBG), which over the years has grown to be the largest construction contractor in the land thanks mainly to government driven economic growth. Now the company is shedding tens of thousands of its estimated 200,000 workforce as it carries out a deep and pain- ful restructuring. Though most of those laid off are guest workers, the fact that SBG has said it could also let go of around two thirds of the 17,000 Saudi nationals it employs is an indication of just how grave the situation has become. Its travails can be at least partly be traced back to the day last September when one of its cranes collapsed in the holy of Mecca, killing 111 people and injuring hundreds of others. The company was reportedly barred from bidding for new construction contracts as a result of the incident while a travel ban was imposed on senior executives. Recent developments suggest things may be starting to look up a little for SBG. The ban on bidding for new tenders was lift- ed last month while the company has also secured access to much needed liquidity. In May SBG reportedly secured a contract to build a new $800mn passenger terminal at the Maldives international airport. D rake & Scull International (DSI) is a regional market leader in the integrated design, engineering and con- struction disciplines of General Contracting, Mechanical, Electrical and Plumbing (MEP), Water and Power, Rail, and Oil and Gas, and Water and Wastewater Treatment. Contracts won in the first half of this year include a AED120mn ($32.6mn) deal with Emirates District Cooling (Emicool) to extend its district cooling network to Dubai Sports City. In the first quarter Fujita Corporation awarded the company a QAR 340mn ($93mn) contract related to the delivery of the first phase of the Doha Metro Depots. The company reported a 61 percent year-on-year decline in net profit for the first quarter of 2016 to AED 9.8mn, compared to AED 25.1mn a year earlier. Revenue was 8 percent lower at AED 1.03bn, and the value of its backlog declined by 18 percent to AED 11.3bn. Despite the results, the company said it had made progress with a strategy to cut costs, improve margins and to try to boost its work- ing capital. “The effect of strategic decisions and unprecedented measures initiated by DSI’s management last year have started to materialise, and have aided our determined efforts to continue the refinement and consolidation of our business in key markets," said the company’s chief executive Khaldoun Tabari. “We expect to continue making changes that will create positive impacts on the bottom line in the next couple of quarters. I believe that adapting our business model to the current market challenges is key to the success of our business." Drake and Scull picked up the award for Regional Market Penetra- tion at the Construction Innovation Awards Qatar 2015. Projects: • Jeddah Tower • Abraj Al Bait, Makkah • King Abdullah Financial District, Riyadh • King Abdulaziz International Airport, Jeddah • Maldives Airport expansion Projects: • Doha Metro • Louvre Museum Abu Dhabi • Fairmont Hotel & Service Apartments, Dubai • The Jewel of the Creek, Dubai • Habtoor City, Dubai Construction Innovation Awards 2015 winner
construction business news me July 2016 40 P resent in 12 regional markets and every continent across the globe, Hill Inter- national provides project management and construction claims services. Since its establishment, this international player has become a trusted leader in the fields of project management services and construction claims services around the world. In the Middle East Hill is involved in prestigious projects in a number of key cities. In Qatar it has won contracts for Doha Metro Green Line, Lusail District, Mall of Qatar and Salwa Resort, to name a few. The firm was awarded Con- sulting Firm of The Year at the Construction Innovation Awards Qatar 2015, in recognition of its achievements. Hill International’s current portfolio includes several pres- tigious undertakings including the Midfield Terminal Complex at the Abu Dhabi International Airport in the UAE, the expansion and modernisation of the Salalah and Muscat airports in Oman, and the 57-acre Jabal Omar development in Saudi Arabia. The firm has continued to be a voice of leadership in the Industry since the financial crash of the last decade. The firm has also been recognised by Who's Who Legal as the leading con- struction expert witness practice in the world. Hill had more of its professionals included on the list than any other firm, with 17 experts included from Hill offices in the U.S., Latin America, Europe, the Middle East, Asia and Australia. D oka is a world leader in developing, manufactur- ing and distributing formwork technology for use in all fields of the construction sector. For the first time in Doka’s history, 2015 saw the company achieve a global turnover of more than one billion Euros, with the Middle East representing one of its best performing regions. As a family owned busi- ness with more than 150 years of heritage behind it, Doka understands the value of listening to the requirements of its clients, something that enables it to deliver the most cost effective and sustainable solutions on all its projects. Today, Doka's services have expanded to provide a comprehensive level of support that runs all the way from initial planning to completion, an ap- proach that has not only enhanced the value chain for its clients, but further- more empowered its R&D department to produce new and innovative products that can save time and cost during the project lifecycle, the most recent example being the real-time concrete measuring device, Concremote. A full interview on Doka’s 2015 performance with the chairperson of the executive board, Jürgen Obiegli can be viewed on the Doka Middle East LinkedIn page. Projects: • Midfield Terminal Complex, Abu Dhabi • Salalah and Muscat airports in Oman • Jabal Omar development in Saudi Arabia • Doha Metro Green Line • Lusail District Projects: • Doha Metro Greenline, Doha, Qatar • Midfield Terminal, Abu Dhabi, UAE • 3rd Airport, Istanbul, Turkey • Golden Tower, Jeddah, Saudi Arabia • Crescent City, Baku, Azerbaijan 15 16 Hill International Mohammed Al Rais, Regional President Doka Peter Vogel, Director Middle East Power 60 Construction Innovation Awards 2015 winner
construction business news me July 2016 41 17 18 Al Bawani Fakhr Al Shawaf, General Manager Imdaad Jamal Abdullah Lootah, CEO A l Bawani Co is headquar- tered in Riyadh, Saudi Arabia, with 100% Saudi ownership and manage- ment, owned by the Al Shawaf family and today chaired by Fakhr Al Shawaf, who joined in 1997. Al Bawani is certified in Quality Management Systems for design, Engineering Works and Construction Management of Housing Complex, Industrial and Commercial Buildings, Hospitals, Educational Institutions, Governmental, Diplomat Missions, Air Base and Defense Facilities. The firm executes turnkey projects across the Kingdom and wider region, employing proactivity in order to assist clients in achieving their goals. With a continued focus on people, the firm supports employees to reach their potential through team work, mutual respect and opportunity. “We want the client to feel that our staff is even more committed to the ef- fort than their own staff; that’s what dis- tinguishes us. Personal attention to our clients as individuals and caring about them as individuals,” says Al Shawaf. “We remain true to our founding values of quality, honesty and hard work. We have the highest ethical standards in the industry. We “do the right thing.” Al Bawani is a business based on trust.” The firm has successfully completed projects with the government and companies such as Ballast Nedam Group, ABB and other firms, specialis- ing in medical, residential and com- mercial projects. I mdaad has been operating as an independent business entity for the last seven years, although its overall experi- ence in integrated facilities manage- ment (IFM) spans more than 25 years. Imdaad commenced operations in 1986 as a civil engineering division of Ports Customs and Free Zone Corporation handling civil engineering works, air-conditioning and electrical maintenance. In 1989, Imdaad increased it service capability by opening new divisions such as waste and environmental management, pest control, sewage treatment services. A joint venture was established in 2002 to provide outsourced facilities management services and in 2007 Imdaad was inaugurated with a mission to provide IFM solutions. With services in both hard and soft FM clients include DP World, Dubai Airports, Emirates, JAFZA, Dubai Municipality, Nakheel, Dubai Silicon Oasis Authority and Emirates NBD, Emaar, Barclays and Dubai RTA, among others. Most recently, during the 2016 FM Expo Dubai Imdaad announced the launch of its Integrated Network Operations Centre, an Internet of Things powered initiative from which the company can remote manage and monitor its customers’ sites and facili- ties. It is developed jointly with Robotina, a Slovenia-based comprehensive automation solutions provider. And in January of this year the firm ap- pointed a new executive director of the environment department, Marc Esteve. Projects: • Four Seasons Hotel, Jeddah • King Abdullah Cancer and Liver Disease Centre • King Faisal Specialist Hospital and Research Centre CLIENTS: • DP World • Dubai Airports • Emirates Airlines • JAFZA • Dubai Municipality We remain true to our founding values of quality, honesty and hard work. We have the highest ethical standards in the industry. We do the right thing
construction business news me July 2016 42 20 ALEC Kez Taylor, CEO WSP | Parsons Brinckerhoff Greg Kane, Managing Director, Middle East W ithin the last three to six years UAE-based ALEC has expanded the business into Qatar and Oman while the core business has diversified with the introduction of the related busi- nesses and extending its capabilities. ALEC aims to create a platform where it can be involved in every stage of the project - from the initial build, right through to the end maintenance. In 2016, the company is looking at further expansion and acquiring stakes in more businesses. Related business units include: ALEMCO (Mechanical, Electrical and Plumbing) - pro- vides fully engineered electromechanical and building services solutions to construction projects. ALEC PRECAST - which focuses on the design, manufacture and installation of decorative architectural precast products. T here have been big changes at WSP | Parsons Brinckerhoff recently. The consultancy now has a workforce numbering close to 1,500 engaged in the Middle East following the merger between WSP and Parsons Brinckerhoff in 2014. To top it off the regional division now has a new managing director after Greg Kane replaced Tom Bower. The integration of the two more or less equal sized companies which began in January 2015 is almost complete, creating a much larger entity with a broader spectrum of expertise. WSP was more known in the Projects: Projects: • Mall of the Emirates expansion • New York University • Royal Atlantis, The Palm • Bluewaters Wharf Retail • Dubai Design District • Concourse D of the Dubai International Airport • Abu Dhabi Airport Terminal 3 extension • The Jabal Akhdar Anantara Hotel Resort & Spa, Oman • REEL Cinema Citywalk • Architectural Fit out Package for ADNOC New Corporate Headquarters in Abu Dhabi. ALEC FITOUT - a business unit who offers full turnkey interior solutions. Smart4Power- energy efficiency solutions for existing build- ings (2014). ALEC Energy – a provider of solar energy solutions for commercial industry (2015). Hestia - Facilities Management (2015). AJI Rentals- leasing of access rental platforms to construction industry (2016) “There are some very interesting and excit- ing projects in the pipeline for the UAE at the moment which create many opportunities for ALEC,” says Kez Taylor. “It is a great market to be involved in as many of these projects are bespoke, high quality builds and this fits well with our diverse project portfolio to date.” Aligning the industry to ensure all parties and stakeholders work together effectively is where the challenge is, Taylor says. “If a project is to be successful, delivered on time and to the highest standard of quality, then everyone involved in bringing that project together must all be working towards a common objective. Creating an environment where constraints and conflicts of interest are resolved quickly is often the main challenge in any project.” Power 60 vertical infrastructure space whereas Parsons Brinckerhoff was better known for work on transportation, roads, highways projects, so the two companies complement each other perfectly. Pre-integration WSP grew 40 percent in 2013 and again in 2014 while Parsons Brinckerhoff saw similar growth. Despite cur- rent tough market conditions the new man in charge is looking optimistically ahead. “It’s a slightly more challenging market than previous years but my sense is there are still good opportunities out there,” says Greg Kane. “Obviously we’ve got Expo in Dubai which is driving a lot of property and building work which we feel we’re well positioned to deliver and we’re doing that as we speak. “The oil price and the impact that that’s having means governments are being cau- tious, as you can understand but we have seen a slight recovery in the oil price and with that brings a little more confidence. “The region still has a latent demand that needs to be delivered in terms of infrastruc- ture and buildings. You have things like Expo and the World Cup and governments releas- ing strategic visions. That all indicates that things are moving and happening and leaves me feeling a little more positive than say 12 months ago.”
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construction business news me July 2016 44 P arsons Corporation is an engineer- ing, construction, technical, and management services firm with revenues of $3.2bn in 2015. The company has been working in the Middle East Africa region for more than 60 years and has offices in the UAE, Qatar, Saudi Arabia, Oman, and Bahrain. The consultancy’s portfolio of ongoing work in the region includes major oil and gas projects as well as highways, bridges, rail and transit, airports, ports, water infrastructure, plus hospitals, public schools, uni- versities, mosques, and other public buildings. Parsons provided project management services for Stage 1 of Etihad Rail, a landmark project carried out in partner- ship with AECOM. Last October the company was contracted to design a new bridge spanning Dubai Creek and to evaluate the Shindagha Tunnel running underneath the waterway. The contract includes the concept study, preliminary and final design, tender documentation and construction supervision of the new bridge connecting Bur Dubai with Deira. Parsons is also providing infrastructure design and construction-supervision ser- vices for the 438-hectare Dubai Expo 2020 site. And most recently Dubai Municipality awarded Parsons a contract to build a Deep Tunnel Sewerage System at a total cost of AED 12bn ($3.26bn). Following its completion in late 2020, the project will remove the need for more than 121 sewage pumping stations spread across the city, saving large amounts of energy. U rbaCon Trading and Contracting is a Qatari based international construction services com- pany and a leading grade one licensed builder. Its activities in Qatar are led by an ever growing pool of trained professionals, with over 4,718 experts and 33,812 tradesmen coupled with more than 2,143 plants and machines. Qatar-based UrbaCon Trading and Contracting (UCC) offers turn-key design, build, finance and operative services. The company has been involved in sev- eral projects over recent years and the portfolio includes Anantara Doha Island Resort; Lekhwiya Sports Club Doha; Souq Wakif Theme Park Doha; Lusail Office Tower and the award winning project Mall of Qatar. This year CEO Moataz Al Khayyat spoke openly about the firm’s injury free track record during a number of major regional projects and also about its presentation of the International Safety Award by the British Safety Council. He credited the successful record to stringent auditing and standards. Projects: • Etihad Rail stage 1 • Dubai Deep Tunnel Sewerage System • Dubai Expo 2020 • Dubai Creek Bridge • Dubai Design District Projects: • Anantara Doha Island Resort • Lekhwiya Sports Club Doha • Souq Wakif Theme Park Doha 21 Parsons Corp Gary Adams, President, Middle East Africa Urbacon Trading and Contracting Company Moataz Al Khayyat, CEO Power 60 22 Construction Innovation Awards 2015 winner
construction business news me July 2016 45 23 24 Nakheel Ali Rashid Lootah, Chairperson Arabtec Holding Raja Hani Ghanma, CEO A fter years of debt restructuring and stalled projects Nakheel has made significant gains in the growth of its portfolio over recent months with the announcement and commencement of projects such as the Ibn Battuta Mall extension in Dubai, Nakheel Mall on The Palm Jumeirah and Deira Islands in Dubai. The news comes as 2015 profits rose 20% compared to 2014 and the first of 10 new Nakheel developed hotels launched; a portfolio that will comprise Dubai’s third St. Regis hotel on The Palm Jumeirah. Well known as a community and retail developer, in Q1 2016 Nakheel handed over 536 completed units to customers, in addition to officially opening Dragonmart 2, and launching Deira Islands. To date, Nakheel has awarded more than AED 3bn worth of contracts for Deira Islands, including infrastructure work, coastal work and construction of the Deira Islands Night Souk, one of several new attractions at the master development. Spanning 15.3 square kilometres, Deira Islands is set to transform Dubai’s Deira district into a world-class hub for tourism, retail and entertainment, adding 40 km including 21 km of beach, to the city’s coastline in the process. Nakheel’s other master developments include Palm Jumeirah, The World, Deira Islands, Jumeirah Islands, Jumeirah Village, Jumeirah Park, Jumeirah Heights, The Gardens, Discovery Gardens, Al Furjan, Warsan Village, Dragon City, International City, Jebel Ali Gardens and Nad Al Sheba Community. Together, these span more than 15,000 hectares and currently provide homes for over 270,000 people. Nakheel has nearly 21,000 residential units under construc- tion or in the pipeline and the current and future retail project portfolio covers more than 15 mil- lion square feet of leasable space. T he largest market listed construc- tion contractor in the UAE has known better days. Arabtec, in a joint venture with Samsung E&C, built the world’s tallest building, Burj Khalifa, for Emaar Properties and the company has collaborated with Dubai’s largest developer on many other noteworthy projects. However the company has suffered in recent years. It booked a $640mn loss in 2015 and recently posted its sixth straight quarterly deficit. The contractor blamed increased costs and tough market conditions for a loss of AED 46.4mn ($12.6mn) in the three months to March 31, though that was an 83 percent improvement compared with a loss of AED 279.8mn in the corresponding leg of 2015. Revenue for the period rose to AED 1.94bn from AED 1.79bn a year earlier. Arabtec is currently undergoing a restructur- ing and has hired AlixPartners as an advisor for the process. The company is looking at stream- lining its operations by shedding a number of related businesses to focus on its core capability of construction. Despite the tough times the company has managed to add four good project wins so far this year, including a AED 1.7bn ($462m) contract to build a 1,100 unit villa project for UAE nation- als in Fujairah. It was also awarded a AED 1.1bn contract to build a 50-storey twin-tower project in Dubai. Earlier this year, Arabtec was awarded a contract to build Bahrain’s new $1bn airport terminal in partnership with TAV Construction. And the year began with a AED 2bn project to build 1,017 villas for Aldar Properties as part of its prominent West Vas development, in Abu Dhabi. Things are beginning to look up. Projects: • Ibn Battuta Mall extension in Dubai • Nakheel Mall on The Palm Jumeirah • Deira Islands, Dubai • St Regis The Palm Projects: • Burj Khalifa • Dubai International Airport • Bahrain Airport • Jumeirah Beach Residences • Al Fattan Marine Towers
construction business news me July 2016 46 26 DAMAC Properties Ziad El Chaar, Managing Director ASTAD Project Management Ali Al-Khalifa, CEO L ast year Dubai-based property developer DAMAC Properties entered the billion dollar profit club with net earnings of AED 4.5bn ($1.3bn), up 31 percent from 2014 while revenue for the period climbed by 16 per- cent to AED 8.53bn ($2.32bn). The total value of projects currently under development is $18.5bn. During the year DAMAC delivered its first project in Doha, Qatar, launched its London Project – AYKON Nine Elms, and delivered the first set of residences in AKOYA by DAMAC, its first master plan development. The company also expanded its reach into China by establish- ing strategic collaborations with 5i5j and Qfang, two of the largest real estate agents in China with a combined sales force of 70,000 agents across various cities. DAMAC Properties says it will continue to offer a unique product mix with a range of A STAD Project Management was founded in 2008 as an equal partnership between Qatar Petroleum and Qatar Foundation for Educa- tion, Science and Community Development. Since then the company has worked on major projects exceeding a total value of QAR 100bn ($27bn). The Ali Al-Khalifa-led com- pany sees it as part of its mis- sion to support Qatar’s national development and the country’s 2030 Qatar National Plan. As such it has worked on many of the fast growing nation’s most Projects: Projects: • Sidra Medical Research Centre • Museum of Islamic Art • National Library • Qatar National Convention Centre • Qatar Science & Technology Park • DAMAC Towers by Paramount • Akoya by DAMAC • Paramount Hotel JMH Waterfront • Ghalia • The Vantage properties and offers to address the needs of target customers. The company believes that its operational model and financial strength will help further distinguish itself and become stronger in 2016 and beyond. Ziad El Chaar, Managing Director, DAMAC Properties, commented: “Dubai continues to at- tract investments in the real estate, tourism and hospitality sectors and it is achieving a quantum leap in the emirate's economy. “In the same spirit, DAMAC Properties is constantly working to improve its offerings and attract more investors and visitors from around the world. With a development portfolio of over 44,000 units at various stages of progress and planning, comprising more than 13,000 hotel rooms, serviced apartments and hotel villas, DAMAC Properties is building the next genera- tion of Middle East luxury living.” iconic projects. Beginning with Education City it went on to play a role in The Museum of Islamic Art, the Qatar National Convention Centre, Museum of Modern Art, and the National Museum of Qatar. Ongoing projects include Hamad bin Khalifa Sports Complex, Sidra Medical Research Centre and the Khalifa International Tennis and Squash Centre. ASTAD recently announced the establishment of ASTAD Consult, a division that will offer design, construction, and operational consultancy ser- vices in Qatar and the wider Middle East. 25 Power 60
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construction business news me July 2016 48 W inner of Ar- chitectural Firm of The Year at the Construc- tion Innovation Awards 2015, Lacasa operates across Qatar, Saudi Arabia, Syria, Libya, Sudan, and Australia. The firm offers services in architectural design, project management, MEP design, structural design, interior design and supervision. Thanks to a talented team of architects and engineers with various professional back- grounds, Lacasa has designed over 250 projects consisting of residential, commercial, hospi- tality, and mixed-use develop- ments as well as master plans and interior designs. In Qatar, these include Sharaka Holdings Building, Waldorf Astoria and Abu Hamour Shopping Village, among others. Currently in the UAE projects are underway at Dubai Wharf and Manazel Al Khor at Dubai’s Culture Vil- lage – a newly developed area and home to the prestigious Palazzo Versace Hotel Dubai and D1 Tower, which are both handed over. Lacasa is provid- ing architectural services on the projects for which show- homes are already open. Manazel Al Khor is a low-rise luxury residential and retail project and Dubai Wharf a four-tower residential development. Spread across three million square feet, the two projects are part of the first phase of development in Culture Village, which also includes a five-star 290-room Anantara Dubai Creek Hotel. Founded only eight years ago by Emad Jaber & Nabil Al Khaja, Lacasa has become one of the most accomplished multidisciplinary Architectural Design firms in the region with a diverse portfolio spanning all types of developments. C overing building, civil infrastructure, plant, housing and development, in the Middle East Samsung C&T has worked on Burj Khalifa, Cleveland Clinic Abu Dhabi, Saudi Qurayyah IPP and Qatar Lusail Riyadh Metro, plus others. In addition to its civil infrastructure, plant and housing projects, Samsung C&T is a specialist in skyscrapers having successfully built three of the world’s tallest skyscrapers: Burj Khalifa, Petronas Twin Towers, and the world’s tallest greenest building, the Taipei 101. On 1 September 2015, Samsung C&T Corporation and Cheil Industries completed a merger, under the terms of which the new Samsung C&T consists of four business groups: engineering and construction; trading and investment; fashion; and resort and construction. A key objective for Samsung C&T is to enhance shareholder value and fulfill its social responsibilities across the global markets in which it operates. Governance and CSR committees will be established to enhance the new company governance policies for the benefit of shareholders and to strengthen the company's CSR efforts. The combined company aims to become a global leading business partner and generate $60 trillion in annual revenue by 2020 by offering a full-range of products and services. The new Samsung C&T is a new third pillar of the Sam- sung group, complementing the electronics and financial services business and estab- lishing another growth engine in biotechnology, fashion and food services. The combined company will own 51.2% of Samsung BioLogics, the Samsung group's biopharma- ceutical business. Projects: • Sharaka Holdings Building, Qatar • Waldorf Astoria, Doha • Abu Hamour Shopping Village, Doha • Dubai Wharf • Manazel Al Khor, Dubai Projects: • Burj Khalifa • Cleveland Clinic, Abu Dhabi • Qatar Lusail Metro • Petronas Twin Towers • Taipei 101 28 Lacasa Emad Jaber and Nabil Al Khaja, managing partner Power 60 27 Samsung C&T Corporation Ahmad Abdelrazaq, Executive VP Construction Innovation Awards 2015 winner
construction business news me July 2016 49 29 30 Dubai Properties Group abdullah bin lahej, CEO BASF Julian Pritchard, General Manager - BASF Construction Chemicals UAE W inner of the Supplier of the Year category at the Construction Innovation Awards Qatar 2015, BASF is a leading chemical com- pany that creates chemistry for a sustainable future. By combining economic success with environmental protection and social responsibil- ity, the German company caters to complex customer needs in numerous sectors through specialised chemicals, performance products, functional materials and solutions, agricultural solutions and O&G. BASF has been customising its expertise for the Middle East for over five decades through local business partners. The company sees tremendous opportunity to expand its footprint in the region, given its rapid infrastructure evolu- tion, heavy project pipeline and commitment to sustainability. As an independent entity or through distributors, BASF is today active across Oman, Kuwait, Bahrain, Qatar, Saudi Arabia and the UAE, with Dubai serving as the sub-regional headquarters. BASF’s Construction Chemicals division is one of the company’s specialised segments catering to solutions for complex infrastructure needs. It offers advanced chemicals solutions for new construction, maintenance, repair and renova- tion of structures. Thanks to the regional staff’s in-depth knowledge and technical expertise, as well as the company’s global network, BASF Construction Chemicals has been a critical element to countless prestigious construction projects in the region. Advanced chemistry has enabled these structures to be energy-efficient, more durable through its lifecycle and resilient to the harsh climate. Projects: • 3D printed office – Museum of the Future • Burj Khalifa • Doha Metro • National Museum of Qatar • Kuwait University Projects: • Marasi Business Bay, Dubai Canal • Bellevue Towers, Downtown Dubai • 1 JBR, Jumeirah Beach Residence, Dubai D ubai Properties Group (DPG) is one of the largest real estate develop- ment and management businesses in Dubai, encompassing residential, retail, commercial, and staff accom- modation. DPG focuses on a broad range of real estate services, which includes the planning and development of renowned destinations in Dubai through Dubai Properties, and asset management through Ejadah. Last August Abdullatif AlMulla was appointed the new group CEO and the group announced a number of new projects under his leadership. How- ever, after stepping down in Q2, last month he was replaced by former Emaar Properties boss, Abdullah Bin Lahej. To date, the portfolio includes high profile projects like Business Bay, Culture Village, Jumeirah Beach Residence, and Dubailand, however the most significant project announcement over the last 12 months has been Marasi Business Bay. Located along the Dubai Water Canal, Marasi Business Bay is set to become a major future landmark in Dubai. The development presents the region’s first purpose-built yachting destination, floating restaurants and cafes, onshore boutiques and entertainment facilities. Nearby in Downtown Dubai, the two-tower Bellevue Towers project launched in May 2016. The East and West towers will provide a total of 300 one, two and three bedroom units across 23 residential floors, separate lobbies set on a common podium and retail stores on the ground floor, as well as community facili- ties. The project sold out on its launch day. On the other side of the emirate, construction began on 1 JBR at the end of January 2016. The 153 unit 46 storey tower ecompasses 2- and 4-bedroom apartments and 5-bedroom penthouses and is situated at the entrance to Dubai's beach- side community, JBR. Construction Innovation Awards 2015 winner
construction business news me July 2016 50 A ldar Properties is the leading real estate developer in Abu Dhabi with $10bn in assets while the company plans to in- vest AED 5.2bn ($1.4bn) over the next two years to close out large projects and build infrastructure for new projects. The company that developed Ferrari World as well as the Yas Marina Formula One circuit in Abu Dhabi unveiled the $1.6bn Yas Acres property develop- ment at this year’s Cityscape Abu Dhabi. Aldar raised $270mn from the first round of sales for the golf and waterfront residential development which will add 1,315 villas to Yas Island. In March, Aldar became the first licensed master developer in Abu Dhabi under a new law de- signed to provide enhanced pro- tection for customers of off-plan developments and enshrine the rights of owners and residents in existing communities. Aldar reported earnings for the three months to 31 March of AED 649mn ($176.7mn), up 14 percent on AED 568.7mn in the same period of 2015. First quarter revenue amounted to AED 1.23bn, up 4.2 percent from AED 1.18bn a year earlier. C urrently executing a number of landmark projects, Sobha Group is a multinational, multiproduct group with developments and investments in UAE, Oman, Qatar, Bahrain, Brunei and India. Established in 1976 by first generation Indian entrepreneur, PNC Menon as an interior decoration firm in Muscat, Oman, the group has grown into a respected name in development and interiors. Two major projects are currently underway in Dubai – Dis- trict One, MBR City and Sobha Heartland – with the recent announcement of the AED25bn Firdous Sobha tourism develop- ment in Umm Al Quwain. Sobha Hartland is a $4 bn mixed-use project in MBR City with the larger six-bedroom villas situated on the banks of the Dubai Canal, which originates from the Sobha Hartland project and runs all the way until the Arabian Gulf. The AED25bn Firdous Sobha is a tourism project to be built on a natural island that will include resorts, hotels, an 18-hole golf course, marina and villas as part of a JV with the govern- ment of Umm Al Quwain. Projects: • Yas Acres • Ferrari World • Yas Marina • Yas Mall • Gate Towers Projects: • District One • Sobha Heartland • Firdous Sobha 32 Aldar Properties Mohamed Al Mubarak, CEO Sobha Group PNC Menon, chairperson Power 60 31
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construction business news me July 2016 52 Ali Mousa and Sons Holding Group Ali Mousa Ali Saif Al Naqbi, Chairperson Bechtel David Welch, EMEA president Brookfield Multiplex John Ferguson, executive chairperson, ME E stablished in the UAE in 1978 by Ali Mousa Ali Saif Al Naqbi, Ali Mousa and Sons Holding Group (AMSHG) has grown steadily to become a major player in the field of Con- struction, Contracting, Manufacturing and Real Estate in the UAE. Currently AMSHG is managing a portfolio of projects worth over AED 2bn. The company has completed countless projects covering more than 2 million sq. ft. of offices and factories for government organisations, large private business units, banks, and various consultants. It employs over 5,000 qualified and experienced engineers, designers, production & project managers, technicians and other skilled workers, allowing it to deliver high quality projects on time. S an Francisco-based Bechtel is a global engi- neering giant that posted a turnover of $37.2bn last year. Middle East turnover rose 49% to $103mn for 2015. Working across infrastructure, the oil and gas industry, mining and metals, the company employs 53,000 people worldwide, and has been active in the Middle East for more than 70 years – starting out in Saudi oil fields. More recently Bechtel has worked on Khalifa Port in Abu Dhabi, Oman’s Muscat International Airport, Qatar’s Hamad International Airport, Saudi Arabia’s Jubail Industrial City, and Riyadh Metro. The company also signed a five- year contract extension to continue its longstanding management ser- vices work at Jubail and Ras Al Khair industrial cities in Saudi Arabia. The contracting giant established a centre of excellence in Dubai, UAE in 2013, with the intention of securing construction work in the fields of natural resources, rail, and ports. B rookfield Multiplex has been delivering landmark property and infrastruc- ture assets for more than 50 years, specialising in large-scale and complex landmark buildings, commercial structures and infrastructure projects. BM’s contracting heritage is in construction – forged in Australia – with ensuing growth in the Middle East, Asia, Europe and Canada, is expanding today to encompass engineering and infrastructure. Recognising the growth potential of the region, Brookfield Multi- plex was one of the first international construc- tion businesses to establish offices in the Middle East during the late 1990s. With a firm focus on its people, Brookfield Multiplex employs 3,010 people and has com- pleted $6.6bn of work to date. At the Construc- tion Innovation Awards Qatar 2015 the firm took two awards: Project Manager of The Year was awarded to Simon Elleray and Contractor of The Year was awarded to the firm with Renier Breit- enbach, general manager, Brookfield Multiplex collecting the award. In March this year it was announced the firm had been appointed the main contractor of One at Palm Jumeirah. Based out of head offices located in Doha, Abu Dhabi and Dubai, the company has built a reputation for fast delivery and high quality through the design and construction of some of the most challenging projects in the region. Projects: Projects: Projects: • Jumeirah Island Villas • Discovery Gardens • Ajman Murur Complex • Al Qassimy Hospital • University of Sharjah • Emirates Towers • Index Dubai • JW Marriott Marquis Dubai • Standard Chartered Tower • Al Ghurair City Residence • Khalifa Port, Abu Dhabi • Muscat International Airport • Hamad International Airport, Doha • Jubail Industrial City, KSA • Riyadh Metro 33 34 35 Power 60 Construction Innovation Awards 2015 winner
construction business news me July 2016 53 36 Al Shafar General Contracting Emad Azmy, President A l Shafar Gen- eral Contracting (ASGC) has seen impressive growth since its establish- ment in 1989. Now one of the leading construction businesses in the UAE and Egypt, employing over 10,000 people including over 1,000 engineers, ASGC has un- dertaken over 280 challenging projects across residential, com- mercial and industrial buildings. The company booked revenues of approximately $770mn in 2015. Recently completed projects include Meraas City Walk retail area and Wadorf Astoria Hotel Palm Jumeirah in Dubai while ongoing projects include Blue- waters Island Residential Sector, Abu Dhabi Marina Bloom and Etihad Museum Jumeirah. Projects: Projects: • Business Central Towers, Dubai • City Walk, Dubai • Waldorf Astoria Palm Jumeirah • Bluewaters Island Residential Sector • Etihad Museum Jumeirah • Four Season hotel, Bahrain Bay • Yas Mall, Abu Dhabi • King Abdullah Sports City • Cleveland Clinic, Abu Dhabi • Dubai Water Canal 37 38 Six Construct Pierre Sironval, managing director Orascom Construction Osama Bishai, CEO A fully owned subsidiary of Belgian outfit Besix, Six Construct specialises in building infrastructure and has exten- sive experience in the GCC, especially in the UAE where it does two thirds of its business. The company has more than 20 projects currently on the go throughout the region including Dubai Water Canal and the Royal Atlantis project on the Palm Jumeirah in conjunction with Ssangyong Engineering and Construction. Six Construct marked 50 years in the Middle East last year. Belgium’s Princess Astrid and the country’s deputy premier and minister of foreign affairs Didier Reynders were present at a function to celebrate the milestone at St Regis Hotel in Abu Dhabi. Its very first project in the region was building the Abu Dhabi Corniche in 1965. Since then it has gone on to work on Burj Khalifa, Sheikh Zayed Mosque, Yas Mall and, more recently, Dubai Tram and Abu Dhabi Airport. E gypt’s Orascom Construction is targeting opportunities in the power, transport and water sectors in its home market of Egypt as profits jumped in the first quarter. The company reported a net profit of $23mn for the first three months of the year, almost four times the $5.8m profit reported in the same quarter last year. Orascom, which owns a 50 percent share in Belgian contractor Be- six, made a strong start to the year with $510m worth of new contracts during the quarter. It has reeled in a number of lucrative contracts for work on the Cairo Metro project in partnership with other companies. More than 60 percent of its backlog now comes from the MENA region – 47 percent from Egypt, 10 percent from Saudi Arabia and over 3 percent from Algeria. Osama Bishai, CEO of Orascom Construction, said following the release of the Q1 results that the com- pany is “well-positioned for additional projects across the infrastructure, industrial and commercial sectors" in Egypt. The company is also eyeing work at the country’s new administrative capital to the east of Cairo. Projects: • Cairo Metro • West Damietta and Assiut power plants
construction business news me July 2016 54 F or more than 50 years, SSH has played a leading role in shaping the built environment and infrastructure of the mod- ern Middle East. Currently, SSH employs over 1,000 people with offices in Abu Dhabi, Algeria, Bahrain, Dubai, Iraq, Kuwait, London, Oman, Qatar, Saudi Arabia and South Africa. Recent project wins include a contract to design villas and apartment blocks at Al Mouj, Muscat, a mixed-use beach-side development close to the city’s new international airport. The Middle East-based infrastructure, build- ing design and project management firm will design two villa types within Al Mouj, a joint venture between the Omani government and UAE-based Majid Al Futtaim Properties. SSH was also recently appointed as contract manager and site supervision consultant for the construction of pri- mary infrastructure and bridge construc- tion on Islands 13 and 14 of Al Madina Al Shamaliya Islands in Bahrain. R P Group is a $4bn conglomerate with wide-ranging interests in construction and industrial development, hospitality, healthcare and wellness, education and trading. Led by Ravi Pillai, the company’s footprint extends across the MENA region, Africa, Australia and Asia and has executed projects worth over $25bn. Its real estate division RP Global has ambitious plans for the Dubai real estate market, with $1.5bn being invested in two signature projects in Business Bay and on Sheikh Zayed Road. Projects: • Education Complex, Kuwait • NBK Headquarters in Kuwait City • Al Salam Palace in Kuwait City • Oman Convention and Exhibition Center in Muscat • Marina Waterfront in Kuwait City Projects: • RP Heights in Dubai, UAE • RP One in Dubai, UAE 40 SSH Bob Hope, CEO RP Group Ravi Pillai, chairperson Power 60 39 Projects: • Vision tower, Bahrain • Al-Tayeb Residential Tower, Kuwait • Central Bank of Kuwait • Qatar Entertainment City • Balqis Residence Palm Jumeirah 41 Projacs Ashraf Al-Garf, CEO E stablished in 1984, the Projacs has a network of over 20 major offices in the Middle East, North Africa, Asia, Europe and North America with more than 600 pro- fessional staff offering customised services to a variety of clients in the public and private sectors. The company thrives to become a leading Construction / Project Management and Training firm in the Middle East emphasising quality of service to its clients through the application of state-of-the- art project management control systems and procedures. Projacs has seen a few changes in the past 12 months. The project management firm was 51 percent acquired by international engineering company, Egis, last year and Ashraf Al-Garf was subse- quently named CEO of Projacs in August. Projacs has more than 100 active projects covering the GCC and North Africa. Notable projects include NBK headquarters and Central Bank of Kuwait in Kuwait, City Stars Sharm El-Sheikh in Egypt, Qatar Entertainment City, and Balqis Residence Palm Jumeirah in the UAE, to name a few. The company has created the Projacs Academy to act as an arm for career development, both in house and for external clients. It uses the Academy to educate the market and promote project management across the region. 4
construction business news me July 2016 55 Larsen & Toubro SN Subrahmanyan, Head of Construction Faithful + Gould Campbell Gray, Middle East Managing Director Shapoorji Pallonji Mohandas Saini, CEO F ounded in Mumbai in 1938 by two Danish engineers Hen- ning Holck-Larsen and Soren Kristian Toubro, Larsen & Toubro has established an interna- tional reputation in the infrastruc- ture sector. In the Middle East it is particularly well known for its work in the utilities and oil and gas sectors. Larsen & Toubro made headlines recently when it clinched a contract to build Al Rayyan Stadium in Qatar, a 40,000 seat venue that will host games for the 2022 World Cup Finals. The India-based engineering firm is building the stadium along with local contractor Al Balagh Trad- ing & Contracting. Though the value of the project was not revealed, reports pegged it at $135mn. F aithful+Gould in the Middle East has achieved a compound annual growth (CAGR) of more than 20 percent over the past three years and this is only expected to increase as the project and programme management consultancy continues to support the development of its key clients such as Majid Al Futtaim, Emaar, Meraas and Miral. Working on some of the region’s most prestigious projects, from King Abdulaziz International Airport in Saudi Arabia, to Doha Oasis in Qatar and Dubai Creek Harbour in Dubai, the consultancy has expanded its workforce to 500 in the Middle East. With the belief that a long term career is viable in this region, F+G has put a number of initiatives in place to retain and progress its staff; its Management Development Programme was formulated in 2014 with the aim of harnessing and developing talent and its Women’s Business Network was put in place to improve gender diversity in its work- force and enable more women to attain senior-level positions in the company. The firm places a lot of value on technol- ogy and innovation and after cementing a market leading partnership with Oracle, a multi-national IT company, back in 2014, Faithful+Gould has been pioneering an enhanced service solution to offer clients better results. A s the oldest Indian construction company, Shapoorji Pallonji has a legacy stretching back 150 years over the course of which it has achieved many more firsts including: The first Indian con- struction company to enter the Middle East in the 1970s; The first Indian construction company to have earned the ISO 9001 Certification across all projects; and The first Indian company to construct two, 60 storey residential towers in the heart of Mumbai. Today, with over 23,000 employees and a group turn-over of $2.5bn, Shapoorji Pallonji Group has evolved and grown exponentially to become a huge conglomerate with multiple business segments. Projects have included a royal palace for the Sultan of Oman, Develop- ment of King Abdullah Financial District in Ri- yadh, commercial mall and serviced apartments in Kenya, Seat of Government and Presidency Ghana, Delhi Public School India, National As- sembly Project, The Gambia. In Qatar the firm is heavily involved in preparations for the 2022 FIFA World Cup and Shapoorji Pallonji Qatar is currently executing four projects valued at around $324m. These are: South East Car Park (SECP) for Qatar Foundation, New Port Project, Le Boulevard for Commercial Bank of Qatar and New College of Pharmacy for Qatar University. Projects: Projects: Projects: • Al Rayyan Stadium, Qatar • South East Car Park for Qatar Foundation • New Port Project, Qatar • Le Boulevard for Commercial Bank of Qatar • New College of Pharmacy for Qatar University • King Abdulaziz International Airport, KSA • Doha Oasis • Dubai Creek Harbour • REEM Mall, Abu Dhabi • Al Maryah Central Mall, Abu Dhabi 42 43 44
Power 60 45 KBW Investments HRH Prince Khaled bin Alwaleed bin Talal, Chairperson B ased in Dubai, KBW Invest- ments has a portfolio spanning construction, manufacturing, engineering, project manage- ment, automation, technology, and more. Founded by HRH Prince Khaled bin Alwaleed bin Talal, KBW Investments (KBW), in the just under a year’s time, has penned several agreements rocketing the company forward. KBW first garnered headlines in January 2014 for its acquisition of 150 year-old Raimondi Cranes, a heritage tower crane manufacturer. Based in Italy, Raimondi Cranes boasts over 16,000 cranes sold with a presence on more than 10,000 construction jobsites globally. Raimondi recently released its newest tower crane with enhanced technologies, the MRT159, to be followed immediately by the launch of a new luffing crane model. In May of this year, KBW’s subsidiary NGP Limited signed a landmark agree- ment in partnership with Indian ITNL. The agreement was Dubai’s first PPP under Law 22 with Dubai Courts to build, operate, transfer (BOT) the new Supreme Courts automated parking structure, planned to be the largest in the world with an esti- mated completion target of Q4 2018. In the hospitality sector KBW company Klampfer further cemented an existing partnership with Basma Group Sharjah (Basma), Chaired by HE Sheikh Sultan bin Ahmed Al Qasimi, to build the Majlis Grand Mercure Sharjah Resort and Spa. The development, a $100mn hospitality project situated in Sharjah will be followed by vari- ous construction projects across multiple sectors under the KBW-Basma banners. KBW also executed a number of acquisi- tions and established several joint ventures and partnerships over the past 12 months including the formation of Ascorel Middle East, to service the MENA region’s heavy machinery segment. The most recent KBW acquisition, a majority stake in Grayscale Interiors, took place in June 2016. Grayscale Interiors, an interior fit-out company based in the UAE, serves to round out the Group’s overall turn-key project capabilities. At the time of writing, KBW had also just released a statement confirming a multitier partner- ship with Greek infrastructure powerhouse Salfo and Associates SA. construction business news me July 2016 56
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construction business news me July 2016 58 Power 60 C olin Timmons recently took the reins at Al Naboodah Construction, replacing Steve Lever who stepped down as CEO after almost 30 years of service to the company. Under Lever the firm positioned itself as one of the most recognised and trusted construction firms in the region, with a reputation for delivering prestigious, complex and challenging projects. The group undertook numerous landmark projects, notably the construction and expansion of Dubai International and Dubai World Central airports. Lever was responsible for the expan- sion of the company into new markets, growth of the workforce to more than 13,000 employees, and development of the company’s in-house facilities, which has significantly increased the Group’s ability to self-deliver on its key projects. Timmons assumes the CEO role after joining Al Naboodah Construction as COO earlier this year having spent five years as General Manager in Abu Dhabi for Al Faraa General Contracting Co. L aunched in 2011 by entrepreneur Kabir Mulchandani, SKAI Holdings, is an inte- grated real estate company offering a wide range of services across five key sectors including investment, restructuring, development, brokerage and hospitality. SKAI’s flagship development is the $1bn Viceroy Dubai Palm Jumeirah hotel which is expected to open later this year, becoming the first Viceroy hotel in the Dubai. Another of the firm’s landmark developments is the 60-storey Viceroy Dubai Jumeirah Village Tower, which SKAI has said it plans to replicate in other major global cities. The company clinched the ‘Tall Buildings’ prize at this year’s Architectural Review MIPIM Future Projects Awards for the design of the tower, pipping 25 other global projects including Saudi Arabia’s Kingdom Tower, and London’s Mile High Tower, to the prize. Construction on the AED 1.37bn ($370mn) tower, which comprises 254 serviced apart- ments with their own private sky gardens and 247 hotel guest rooms, is on track to complete in late 2017. China State Construction Engineering Corporation (Middle East), the main con- tractor and a key investor, has now completed ten levels of the core building work with MEP, partition and blockwork currently underway. Projects: • Dubai International Airport • Al Maktoum International Airport Projects: • Viceroy Dubai Jumeirah Village, UAE • Viceroy Dubai Palm Jumeirah, UAE • SKAI Residency in Dubai, UAE • Bahar 4 in Dubai, UAE • Villa Heights in Dubai, UAE 47 Al Naboodah Construction Colin Timmons, CEO SKAI Holding Kabir Mulchandani, Group CEO 46 48 EFS Facilities Services Tariq Chauhan, Group CEO E FS Facilities Services is a regional leader in delivering integrated facilities management services across the Middle East, Africa, South Asia and Turkey. The company has been accredited for over 16 years in providing quality services to some of the biggest regional names including leading multinationals in the region. EFS has AED 3bn ($816mn) in contract backlog and manage an approximate total area of over 250 million sq. ft. spanning from Africa to South Asia including Middle East. The company’s FM portfolio comprises of prominent and prestigious clients ranging from large government entities to many Fortune 500 companies. It offers total facilities management solutions comprising of over 75 services through dedicated business verticals such as Oil and Gas, Banking, Industrial, Public Sector, Integrated Workplaces, Education, Retail and Mixed Use developments. Led by a competent, experienced management with several decades of combined core industry expertise and past track record, complemented by ISO 9001, 14001, 27001 and 18001 accreditations, EFS has built a reputation and gained the trust of top companies in the region.
construction business news me July 2016 59 Discover CCS Take a break from your project stress with CCS state-of-the-art software. For over 35 years, our software solutions have been developed for contractors by contractors. At the leading edge of industry trends, Candy and BuildSmart put you in complete control of your project: from check-in to check-out, a 7-star experience. CCS proudly partnered with contractors involved in landmark hotel and hospitality projects including Burj Al Arab, Emirates Palace, Bab Al Shams Desert Resort & Spa, Madinat Jumeriah and Atlantis the Palm. Let us help you find your piece of paradise today. Set yourself free today and call on +971 4 346 6456 or check-in at info@ccsgulf.com “CCS is the best construction estimating and project control software I have come across. Saving half the time coupled with the accuracy and efficiency it provides, easily surpasses similar software applications.” David Baker, Estimating Manager, Habtoor Leighton Group, Qatar.
construction business news me July 2016 60 Power 60 KEO Donna Sultan, CEO Omniyat Mahdi Amjad, Chairperson and CEO TDIC Ali Majed Al Mansoori, Chairperson F ounded in 1964, Kuwait-based KEO delivers award winning architectural design and consultancy services and has worked on a large number of projects across the Middle East. Among its recent endeavours are the Al Wakrah Sta- dium in Qatar for the 2022 FIFA World Cup and the Louvre Abu Dhabi museum. Damac Towers by Paramount Hotels & Resorts, currently in the final stages of construction in Dubai, was designed by KEO. KEO was awarded a $6.93 (SAR26m) deal in March by Saudi Real Estate Company (Al Akaria) for full design and construction supervision for its Al Aqeeq Mixed Use Hotel Complex north of Riyadh. The company’s portfolio in Saudi includes the King Abdullah Economic City (KAEC) in Jeddah, the King Abdullah Financial District Monorail System in Riyadh, and King Abdulaziz Road Mixed- Use Development in Mecca. Among other projects in the region KEO has been contracted to work on the new Qatar Zoo and a college of architec- ture and a college of information technol- ogy (IT) in Kuwait. O mniyat is the high end property developer responsible for One At the Palm, a AED2bn luxury project at the base of the Palm Jumeirah being built by con- tractor Brookfield Multiplex. Those lucky enough to get their hands on one of only 90 apartments will have to fork out between AED14m for a ‘basic’ unit and AED200m for a penthouse. The Mahdi Amjad-led firm has announced plans to have over 2,000 hotel rooms and serviced apartments in its portfolio by 2020. Its flagship project is The Opus – the exterior and interior of which were designed by the late architect, Dame Zaha Hadid. The hotel portion of The Opus in Burj Khalifa District will be opened in the third quarter 2017. Omniyat has recently awarded the enabling works contract for its AED 1bn ($272mn) Langham Place Hotel and Residences located in Business Bay. The project will include 167 hotel keys and fully- serviced five-star residences and be ready by 2020. T ourism Development & Investment Company (TDIC), established in 2006 and fully owned by Abu Dhabi Tourism & Culture Authority, is a master developer of major tourism, cultural and residential destinations in Abu Dhabi. These include Saadiyat, a natural island ten- minute drive from downtown Abu Dhabi featur- ing luxury resorts, championship beachfront golf courses, sophisticated residential communities, retail destinations and cultural institutions. The standout features of the project are its three world class museums - Zayed National Museum, Louvre Abu Dhabi and Guggenheim Abu Dhabi - designed by Pritzker Prize-winning architects. The Jean Novel-designed Louvre Abu Dhabi has reached an advance stage with its spectacular disc-shaped roof complete and outer walls removed to allow sea water to sur- round the building, giving it the appearance of being built on the sea. TDIC is also developing Desert Islands, a heritage-based tourism destination composed of eight islands - Sir Bani Yas Island, the histori- cal Dalma Island and the previously unexplored Discovery Islands. Projects: Projects: • Saadiyat Island • Desert Islands • Sir Bani Yas Island • Dalma Island • Discovery Islands • One At Palm Jumeirah in Dubai, UAE • The Sterling in Dubai, UAE • The Opus in Dubai, UAE • The Square in Dubai, UAE • One By Omniyat in Dubai, UAE Projects: • Al Wakrah Stadium, Qatar • Damac Tower by Paramount, Dubai • Louvre Abu Dhabi • Kuwait Institute of Science and Technology • Kuwait Investment Authority (KIA) Headquarters 49 51 50 Louvre Abu Dhabi
construction business news me July 2016 61 52 53 54 Autodesk Carl Bass, president and CEO A utodesk Inc. is a leader in 3D design, engineering and entertainment software. Since the introduction of AutoCAD software in 1982, Autodesk continues to develop the broadest portfolio of 3D software for global markets. Customers across the manu- facturing, architecture, building, construction, and media and entertainment industries—includ- ing the last 21 Academy Award winners for Best Visual Effects— use Autodesk software to design, visualise, and simulate their ideas before they're created. Through bespoke apps for multiple devices, Autodesk is today reaching more custom- ers in different fields and with BIM transforming how design, planning and building works, Au- todesk is working to increase the efficiency of a variety of project types, including civil infrastructure. The aim is to reduce waste in construction projects with tools that help contractors and sub- contractors improve construction planning, produce results faster, and finish projects on budget to increase profit margins. Industry Partners Projects: • Balfour Beatty • Mortenson Construction • Clayco • The Walsh Group • Education City in Doha, Qatar • Danet in Abu Dhabi, UAE • The Wave in Muscat, Oman • Salalah Airport, Oman • Dubai Investment Park, UAE DC Pro Engineering George Berbari, CEO RS Group Sausan Bahnasi, CEO D C Pro Engineering is a recognised world leader in the fields of district energy, co-generation and tri-gen- eration. The firm is also a renowned sustainability leader in Green Building MEP Designs. DC Pro’s services include engineer- ing design, consulting, and project management in District Cooling, Combined Heat & Power (CHP) Co-generaion and Tri-Generation , Green Build- ing MEP Design and Renewable Energy. Other services include engineering reviews, feasibility studies, efficiency monitoring and recommenda- tions for energy performance improvement. The company has several international projects in its portfolio starting from Sydney Barangaroo South, Singapore Marina Bay Sands, Several Hilton Hotels in Kampala, Chad, Abuja, Seychelles, Iraq, Lebanon and the GCC. CEO of DC Pro George Berbari started his journey in 1995 with a natural gas fed district cooling scheme in Zayed Military City, Abu Dhabi. Having set up this one-of-a-kind system in the Middle East at the time, he jokingly calls himself the “Godfather” of the district cooling industry. T he RS Group is a Leading 360° Engineering Solutions Pro- vider with business interests in three distinct areas: Form- work and Scaffolding, Technical Contracting and General Trading. It has been successfully enabling construction for over three decades across the Middle East and Africa. The RS Group traces its origins to the establishment of its oldest company Golf Scaffolding Factory in 1989 and its flagship company Perfect Steel in 2007. Over the years, several other companies in UAE have become members of the RS Group adding to its strength and ca- pabilities: Al Mithaliah Technical Contracting, Perfect Approach General Trading, Gulf Scaffolding Hire and Al Mithaliah Formwork Rental. In 2016, the group set up Perfect Scaffolding in Oman to consolidate its regional operations. The RS Group’s operational activities include manufacturing, sales, rental, engineering and design, site support services, equipment maintenance, general trading, formwork erection and dismantling to support its customers in the construction industry. It also owns and operates one of the most advanced formwork manufacturing and fabrication facilities in the region. The RS Group follows the ISO 9001: 2015 Quality Management System. The group has built an excellent reputation among major contractors and engineering consultants by consistently delivering reliable solutions that meet critical project requirements with the highest standards of quality, safety, design, reliability, sustainability, efficiency and cost effectiveness. Projects: • Sheikh Zayed Grand Mosque, Abu Dhabi • Emirates Palace, Abu Dhabi • Al Reem Island Bridge, Abu Dhabi • Sharjah International Airport, Sharjah • City Walk, Dubai
construction business news me July 2016 62 Power 60 T he Cayan Group is one of Middle East’s leading real estate developers best known for the twisting Cayan Tower in Dubai Marina. Officially declared by the Guinness World Records in 2015 as the globe’s tallest twisted tower standing at 307 meters high, has become one of the architectural landmarks in the Gulf region. Since its formation in 2004, the group has concentrated on developments within the GCC with offices in Riyadh, Saudi Arabia and Dubai. Cayan Devel- opment’s portfolio features high-rise buildings such as residential complexes, commercial towers and centres, hospi- tality projects and mutipurpose gated communities. Projects: Projects: • Cayan Tower in Dubai, UAE • Dorrabay in Dubai, UAE • Cayan Business Center in Dubai, UAE • Layaly Compound in Riyadh, Saudi Arabia • Samaya in Riyadh, Saudi Arabia • Town Square villa development, Dubai • Citymax Hotel, Ras Al Khaimah • Labour accommodation at Al Aweer, Dubai • Villas at Umm Suqeim, Dubai Cayan Group Ahmed Alhatti, Group Chairperson 55 F ounded in Australia 30 years ago, Kele Contracting established a presence in the UAE in 2005 and has worked on a number of projects since, including Marina Promenade and six other residential towers in Dubai Marina. It has also worked on a number of luxury villa projects and is currently working on the 28 storey Fahad 1 Tower and 30 storey Fahad 2 Tower in Barsha Heights (Tecom), Dubai. Kele has also worked on projects in KSA, Qatar and Lebanon. Projects: • Marina Promenade in Dubai, UAE • Salman Bay in Jeddah, Saudi Arabia • Deira City Center in Dubai, UAE • Hydra Towers in Dubai, UAE • Dragon Mart Hotel in Dubai, UAE 56 Kele Contracting Andrew Elias 57 Beaver Gulf Contracting Rajesh Kumar Krishna, Chairperson & CEO, Beaver Gulf Group D ubai headquartered Beaver Gulf Contracting is part of Beaver Gulf Group, with diversified interests in Real Estate, Project Management, Construction, Interior Decoration, Hospitality and Education across the region. The company is a Turn Key Contractor with full-fledged in house Civil, Electro mechanical, air conditioning, steel Construction, joinery, aluminium, signage and cladding divisions. Beaver specialises in the construction of multi storied commercial and residential buildings, hospitals & telecom buildings, electrical substation buildings, warehouse complexes, LPG filling plant and bulk stor- age facility, and all other types of turnkey projects in UAE, Middle East and India.
construction business news me July 2016 63 Dar Alarkan KEF Holding Sumou Real Estate D ar Alarkan is a real estate development company in the Kingdom of Saudi Arabia, specialising in residential real-estate and the development of master-planned lifestyle residential communities offering developed land parcels, apartments and villas. Based in Riyadh, Dar Al-Arkan was established in 1994 by six prominent business families with significant real estate development experience in response to the increasing demand for quality housing from the rapidly growing Saudi population. From July 2002 to January 2004, Dar Al-Arkan operated as a limited liability com- pany with a capital base of $37mn. The company increased its capital to $1.44bn through a private placement in the domestic market in 2004 while converting to a partnership limited by shares. Subsequent to the private placement, Dar Al-Arkan converted to a joint stock company in 2005 and in 2007 listed its shares on the Saudi Stock Exchange. Dar Al-Arkan’s rapid growth corresponds to a clear shortfall in the supply of housing units and an increasing demand for residential real estate in the Kingdom, particularly within the middle-income segment of the market. W ith an engineering back- ground, Faizal Kottikollon’s journey of success began when he came to the UAE in 1995 to set up his first business – Al Ahamadi General Trading in Ajman. The chairperson and founder of KEF Holdings started a foundry called Emirates Techno Casting (1997) in Sharjah, primarily manu- facturing valves for the oil and gas industry. With time, Faizal invested in cutting edge technology and developed processes that were never used in the valve manufacturing business before. ETC went on to become one of the top three foundries in the world. It expanded until it was sold in 2012 to Tyco International for a sum of $400mn. Using this capital he founded KEF Holdings – in- corporated in Singapore and headquartered in DIFC, Dubai – with six business verticals: infrastructure, healthcare, education, metals and investments. Metals was KEF Holding’s first business vertical. Established in 1995, Al Ahamadi General Trading (AGT) company became the stepping stone for KEF’s business future. Pre-fab and module construction is a backbone of the business. At Arab Health 2016 the firm unveiled its “Catalogue Hospital” concept for modular construction of health facilities in the region. The idea was devised by KEF-TAHPI Design Studio, a joint venture of KEF Holdings and Australia- based TAHPI. KEF is the first company in India to employ BIM Level 6 integration in its design and build projects. The company is also heavily invested in relief and CSR projects including Haiti Earthquake Relief and Tamil Nadu flood relief. T he significant growth in Saudi Arabia and the region in general has given rise to a niche category of specialised and experienced companies, comple- menting this growth; Sumou Real Estate is the product of this development and aspiration. Inspired by its founder Ayedh Bin Farhan Al Qahtani, Sumou Real Estate is on course to be one of the region's leading developers. Al Qahtani follows in the footsteps of his father who had a reputation as a leading businessman in Saudi Arabia after founding one of the largest contracting companies in the Kingdom in the 1950s. Within the company's plans to enhance per- formance, it was announced at the start of 2016 that Eng. Jarallah bin Mohammed Al-Omrah had been appointed CEO of the company. This will help to promote the real estate development which witnesses growth currently. Projects: Projects: Projects: • Juman Project • Al-Qasr Mall • Shams Al Arous Project • Shams Alriyadh • Al Qasr Project • Al Tilal Project • Murooj Jeddah • Dahiat Sumou • Tilal Sumou • Sumou Avenue • Business Oasis • Embassy 7B • Meitra Hospital 59 58 60 Ayedh Bin Farhan Al Qahtani, founder
construction business news me July 2016 64 Supplier Interview Ian Hauptfleisch, General Manager of Construction Computer Software (CCS), speaks to Construction Business News Middle East. Recession proof your business What does your business do? Construction Computer Software pro- vides comprehensive software solutions to the construction industry, specifically the general contractors. Construction Computer Software, or CCS as we’re widely known, has two software product offerings, one being Candy and the other BuildSmart. In essence, CCS provides the complete construction enterprise solution through adopting a “best of brands” approach by integrating the essential elements of bud- getary or allowable control and cost ac- counting to provide contractors with real time, reliable, auditable, accurate and ac- tivity based comparative analysis of costs and allowables, the essential information that determines the success or failure of a construction venture for the contractor. Why should companies use your software? Control is at the heart of profitability when it comes to construction considering the number of variables, changes, people and equipment involved to undertake any construction project. Construction perfor- mance and progress cannot be monitored on financial data alone and engineering information is just as, if not more, critical. Engineering control includes generating and managing allowable and actual quan- tities of resource, wastages, manhours of labour, production of equipment and time for construction activities. The critical touch points between Can- dy and BuildSmart allows accurate com- parison of what is actually happening on a project to what was expected – all in “real time”. This is because BuildSmart’s architecture allows all cost information (payroll, plant, stock, yard stock, MRP, etc.) to be entered once where the in- formation is first produced (site, head of- fice, yard, etc.) and then to be managed through a single data base for full integra- tion and real time analysis. How can you help companies recession-proof their business? It is exactly at this time that insufficient monitoring of project processes leads to uncertainties as to profitability. It is right now that all contractors should produce better estimates, and have closer con- trol over projects and better monitoring of earned value and cash flows, for to rely on last year’s mindset of a continual stream of work and bulging order books would be a dangerous folly. At times like this, “cash is king” and CCS products are designed to give management the tools they need to control their cash effectively. The current global economic crisis highlights the consequences of laxity of control systems in boom times. It is pre- cisely at these financially uncertain times that CCS can aid your decision making processes, keeping tendering, procure- ment and numerous construction project variables under tight control enabling better decisions with better information produced at the right time. Current condi- tions globally and in the Middle East pres- ent various challenges but also unique opportunities to streamline your business processes and controls. What plans do you have for the business for the next year? The Middle East and North Africa still holds immense potential for us to expand our existing and new user base. Many users and organisations are also under utilising our software and we plan to as- sist existing users to realise the potential and maximise on the capability of their investments. We also plan extensions to new markets like Saudi Arabia, Lebanon and Jordan, which are experiencing in- creased construction activity. Being such an essential tool to most construction in- dustry professionals, our most successful marketing strategy has simply been word of mouth thanks to the many construction professionals recruited from companies and countries where CCS is used. We recently set up our first office in India and have already secured some prominent clients, including one of the largest and reputably acclaimed con- struction companies in India. We hope to make further inroads into what rep- resents a huge market with enormous potential for us.
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construction business news me July 2016 66 IN PERSON As Genavco prepares to turn 50 next year, Asif Sayeed Khan, General Manager of the plant & equipment division, reflects on the construction machinery distributor’s growth over the years and its plans for the future. Digging In Asif Sayeed Khan, GM Plant & Equipment, Genavco Greg Kane G eneral Navigation and Com- merce Company (Genavco) is gearing up to celebrate 50 years since its launch as part of the Jumal Al Majid Group in 1967. The construction machinery distributor wants to mark the milestone next year by bringing together customers and a group of partners that has grown to 24 over the years, to thank them for their support. “Our existence today is because they have supported us through this journey,” says Asif Sayeed Khan – General Man- ager – Plant & Equipment, Genavco. “We will invite them to celebrate the success of our business. Some of them are very old partners.” One of those longstanding partners, the Wirtgen Group, recently paid a visit to Genavco. A delegation led by Jurgen Wirtgen himself jetted into Dubai in a demonstration of appreciation for its partner. “Mr. Khalid Al Majid, vice Chairperson- Juma Al Majid Group, hosted a dinner for them and we arranged a visit to our facility. It was an occasion for us that the owner of the company came to meet the people and to assure their support for
construction business news me July 2016 67 us,” says Mr Asif. “Wirtgen Group’s slo- gan is Close to customers5. That attitude cascades down to all their distribution channels and we also follow the same customer first principle. If our customer is in need we try to be there for them within 30-60 minutes.” He adds: “Key to our success is quality of service. We assure our customers of 95 percent availability of all spare parts at all times. That plays a key factor in gaining customer confidence and living up to ex- pectations. We have been recommended at each and every job site. “Mr Wirtgen came himself this year and we had a discussion about our busi- ness plan and strategy and what we need to do more of to satisfy and exceed cus- tomer demand. With the results that we are bringing in they are happy and satis- fied with the performance.” Genavco has three business verticals working with 24 partners on an exclusive basis. The first is the commercial vehicle division which is Isuzu Automotive. The second, led by Mr Asif is the plant and equipment division which has 22 part- ners, and the third is the lubricant and oil division. Genavco is the distributor for BP products in the UAE. The plant and equipment business is divided into six segments: road machin- ery; quarry and mining; material handling equipment; engines and transmission; earth moving equipment; industrial prod- ucts. “We are associated with 95 percent of major infrastructure projects in the UAE by supplying our various products,” says Mr Asif. “Our diversity gives us the ability to serve various market segments. When I joined the company in 1993 we did not have that range of products but we gradually diversified to cater to the entire industry.” Road construction equipment is the biggest contributor to the plant and equipment section. Genavco supplies Vogele asphalt pavers which enjoys an 86 percent market share. It also has Hamm asphalt rollers which have a 46 percent share. And its Wirtgen milling products for road rehabilitation and repairs, have total dominate of the market. Genavco focuses on selling the equip- ment but also does short and long term rentals and leasing over two, four or five years depending on the project size and the customer. “That is a small part of the business but to support our customer base we do have this option,” says Mr Asif. “Sometimes we don’t have a product available to sell and so renting helps us to retain the customer by providing them with what they need on a short term basis until we can bring a unit in for them.” He explains: “There are many compa- nies that specialise in rental and leasing and they are our customers. We never wanted to project ourselves as a major rental player because we didn’t want to compete with our own customers but we do have a small fleet of rental units.” It used to be more common for A delegation from Wirtgen Group visits Genavco
construction business news me July 2016 68 Genavco to sell directly to contractors at a time when the market was stronger and they were in need of the equipment on a short delivery basis, says Mr Asif. However since the 2008 financial crisis contractors are more careful about their capex and now look more to rental and leasing. “If you have a project that’s six to nine months long it makes sense to rent because you don’t know what’s going to happen afterwards. So the trend has changed,” he says. Each of Genavco’s divisions have been affected differently by the recent mar- ket downturn following the drop in oil prices. Within the equipment segment, quarry and mining has started to pick up. Demand for aggregate, for example, is showing signs of recovery which is an indicator that the market is improving. “We have a diversified portfolio so if one of our segments is down another one is up,” says Mr Asif. He admits that, like most companies, Genavco predicted a tough year in 2016 and has been cautious with its spend- ing, but he is hopeful of an upturn soon. “2015 was our best ever year, even sur- passing our 2008 figures, so that doesn’t mean 2016 will be a bad year! At this point we are at par with our budget for the year,” he says. “We would be optimis- tic for a recovery next year. Our clients are signing contracts now for delivery in 2017 because they are anticipating a price increase next year. Some of the business that we wanted to do this year will spill over into 2017.” For its next move Genavco is looking at branching out into the waste manage- ment and recycling sector as the govern- ment pushes for more sustainable solu- tions to its waste issue. Currently most waste produced in the UAE goes straight into landfill which continue to pile up. And the construction sector is known to produce a huge amount of waste. “That’s where we see the future,” Asif says. “In 2008 the government had started spending money in that area but when the market crashed the plans were shelved. Now, as the situation improves people are becoming more aware of the importance of recycling and the govern- ment has launched awareness campaigns around the waste issue.” Genavco intends to focus on construc- tion demolition (CND) waste, followed by domestic waste. It is in talks with a British company to work on a waste management and recycling project. “Some companies are already doing it but the market has more demand and needs more players,” says Mr Asif. “The government role is very important. Be- cause government did not make it manda- tory, CND recycling didn’t take off to the level it should have been. But if the gov- ernment introduces regulations that com- pel contractors to use a certain percentage of recycled material projects, it would ob- viously create a market for them.” Jurgen Wirtgen, managing partner of Wirtgen Group visits Genavco “We are associated with 95 percent of major infrastructure projects in the UAE by supplying our various products” Asif Sayeed Khan, Genavco IN PERSON
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construction business news me July 2016 70 UD Trucks and Rolaco Trading and Contracting have launched the new Quester range of trucks in Saudi Arabia. The all-new Quester is a multi- purpose truck that can be used off and on-road, for construction, distribution and long-haul trans- portation. Commenting on the Quester’s arrival to the Middle East, Lars- Erik Forsbergh, President- UD Trucks Middle East said: “I am confident that Quester will be a big game changer for UD Trucks. "More than 400 full-time ex- perts from different nationalities, with extensive knowledge and experience, have been involved in designing, developing and validating Quester and its asso- ciated services. “The team has spent 1,500,000 engineering hours and 65,000 test hours to build the ultimate trucking machine.” The new Quester range is ro- bust and strong, utilizing a com- bination of global technology and Japanese craftsmanship. The range combines the best of three worlds; UD’s heritage of Japanese craftsmanship and customer care, Volvo Group’s global technology and aftersales know-how, and cost efficiency. UD Trucks, previously known as Nissan Diesel, is part of the Volvo Group. F SI Middle East, the re- gion’s leading facilities management solutions software provider, recent- ly launched FSI Intuitive BI - a business intelli- gence dashboard solution providing in- stant data visualisation and analysis of the information stored in FSI’s Concept Evolution system. The software supports the distribu- tion of key management information to Concept Evolution users, in a way that is both readily understandable and easy to act upon. Information is presented within simple graphical components that are combined into dashboards of related information. The dashboards can then be viewed via a normal PC browser, on a tablet, or by smart phone. Information within the dashboard can also be restricted by the role or seniority of the user, for example a contract manager would only see in- formation relating to properties in their contracts, and a maintenance manager would perhaps not see financial infor- mation. Similarly, suppliers would see only their task performance. “Intuitive BI does not replace our existing dashboard, it is merely an ad- vanced option which will allow non- technical users to ‘slice and dice’ and create from pre-prepared data extracts (datasets), as well as provide easy to understand graphical visualisation of data,” explains Adrian Jarvis, General Manager of FSI Middle East. Information is presented in simple graphical forms (trends, gauges, bar charts, pie charts etc.), called compo- nents, that are combined into dash- boards of relevant information. The FSI Intuitive BI platform has the unique ability to reuse the same components and dashboards many times without incurring an additional performance or cost overhead, potentially slashing the time and cost for BI solution develop- ment and maintenance. There are currently eight distinct dashboards covering, the following areas, namely: helpdesk call analysis, customer satisfaction, finance, task analysis including supplier perfor- mance, as well as assets & PPMs, re- source efficiency & workload, facilities booking, and management overview. Data can also be imported from sources other than Concept Evolution to provide an integrated dashboard so- lution for the organisation as a whole. FSI Middle East launches intuitive BI dashboard solution UD Trucks launches Quester range in Saudi Arabia SUPPLIER News
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construction business news me July 2016 72 Supplier Interview Hakan Ilhan – Director, Marketing & Dealer Development, LiuGong Dressta Machinery, on the company’s penetration in the Middle East. Dressta for Success What is Dressta’s main product offer- ing to the construction sector? Dressta is well-known for its crawler doz- ers, with one of the widest range of prod- ucts on the market, from 8.2 to 67.7 tons. The company also manufactures wheel loaders. The whole range of Dressta doz- ers is engineered with the power and versatility to excel in any construction project. Whether used for residential, in- dustrial or commercial building projects, dams, roads, landscaping and more – our crawler dozers are essential equipment for successfully tackling any jobsite re- quirement with ease. Dressta also manu- factures pipe layers with lift capacity up to 100t. In addition to construction, the products can suit diverse applications ranging from forestry and landfilling, to mining, pipe laying and quarrying. At Dressta, we seek to ensure that your machine will surpass expectations in delivering the results you need to get the job done. Construction applications require a combination of speed, agility and brute force – Dressta machines offer the perfect balance for loading, ripping, lifting and dozing. How long has the company been pres- ent in the Middle East? Dressta has been present in Middle East for decades, but recently we have rein- forced our presence in the region. In order to develop the dealer network in the region, a dynamic and experienced Regional Sales Manager for Africa and Middle East has been appointed at the end of 2015. We are appointing dealers that share our vision. To support our dealers and customers, we have also implemented a regional parts depot in the United Arab Emirates (Dubai). It is one of our seven global hubs for Com- mercial and Aftermarket support and demonstrates the importance of the re- gion in our global strategy. What kind of growth have you seen here in that time? Between 2012 and 2015, the dozer mar- ket in the Middle East was quite stable, with around 1,000 units sold every year. In terms of equipment size, the most popular models are the ones in the 260 to 360 hp category, which corresponds to our Dressta TD-25 dozer. This catego- ry represented nearly 70% of the market in 2015. The next most popular models are those in the 360 to 520 hp category (20% of the market), like our Dressta TD-40. Another interesting fact is the ris- ing need for dozers with 210 to 260 hp, while dozers in the 160 to 210 hp range are decreasing. In the first four months of 2016, dozers with 210 to 260 hp made up more than 25% of the total market. In which countries in the region are you seeing most business at the moment? Saudi Arabia used to lead dozer sales in the Middle East, representing more than 50% of the total market between 2012 and 2015. But with the lower oil price the country is suffering and the market has dropped away in the first months of 2016. The second biggest market in the Middle East is the United Arab Emirates, which has seen similar market shrink- age for the same reasons. But the Irani- an market has been lively this year due to the end of international sanctions. Dressta has been cooperating with Ira- nian construction companies for many years. We have a dealer there and in 2015 we delivered a number of dozers. What is your most recent high profile project/contract win? In 2015, we delivered TD-40s to Jahad Iron Ore Mining, a State Owned Mine in Iran where our dealer, Haffar Machine company, is doing a great job. The Ja- had Iron Ore mine is well established with close to 2,000 units in their fleet on two sites including dozers from various brands. The machines operate up to 20 hours per day on three shifts. Haffar has set up a mobile service workshop on site complete with power generator, tools and parts and mechanics carry out daily main- tenance and servicing including complete- ly power washing the tracks to remove all dirt. Combined with the engineering be- hind the product, the result is impressive as the machines have the highest uptime for production work and the mines are highly satisfied with Haffar’s support and are looking into growing their fleet with more Dressta machinery. Tell us about your latest product inno- vation for the construction sector and why buyers need it If we talk about crawler dozers, our core product, for the Middle East market spe- cifically, the Dressta TD-25 is the product to talk about. It is the first of our heavy- duty crawler dozer range, starting with a net flywheel power of 330hp and an op- erating weight of 41.5t. The machines are built to excel in construction projects, but also in heavy mining and coal, incorpo- rating advanced technologies and com- ponents for optimal performance. The TD-25 offers optimal power to weight ra- tio for unrivalled traction & drawbar pull, making it the ideal product for the con- struction market in the Middle East.
1 / 3 Meanwhile… itʻs make-or-break time at the demolition site. No loadʻs too heavy, no space too tight, no terrain too rough. The dayʻs hardly started, and yet this jobʻs already done and dusted. But thatʻs just business as usual for this beast of a machine. Power meets comfort! With increased hydraulic power and a gargantuan grip, this skid steer loader is pure muscle. While the re-engineered cab keeps you comfy as you maneuver quickly and surely – doing more, faster and better. S450 UP NEXT ... A DEEP SEATED PROBLEM Bobcat is a Doosan Company. Doosan is a global leader in construction equipment, power & water solutions, engines, and engineering proudly serving customers and communities for more than a century. | Bobcat and the Bobcat logo are registered trademarks of Bobcat Company in the United States and various other countries. ©2016 Bobcat Company. All Rights Reserved.
construction business news me July 2016 74 Event preview I ndia is considered a rapidly grow- ing market for the global construc- tion-machinery industry with some 46,000 units expected to be sold in 2016. According to the Indian Construc- tion Equipment Manufacturers' Associa- tion (ICEMA), the upswing will primarily be driven by the road construction and earthmoving sectors during the next two to three years. Based on the forecasts, nearly all types of equipment will profit from this growth, although six types of machines will continue to dominate the market: backhoe loaders, crawler excavators, mobile cranes, mobile compressors, compactors and wheel loaders. Howev- er, machines that could only be sold in smaller quantities in India in the past— such as mini-excavators, all-terrain fork- lifts and compact loaders—will also ac- count for a larger share of the market. In keeping with the 12th five-year plan, India will invest one trillion USD in infrastructure expansion between the years 2012 and 2017. Germany Trade & Invest (GTAI) points out that construc- tion of roads is a top priority for India BAUMA CONEXPO INDIA just like expanding the railway infra- structure and the ports. Building bridges is also another herculean task. Accord- ing to the National Highways Author- ity of India (NHAI), 50,000 bridges are considered technically obsolete and need to be complete- ly refurbished in the medium term or replaced with new construction. In other words, there is plenty of activity on the Indian market, which makes BAUMA CONEXPO INDIA an important gathering for the industry. The International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines, Construction Vehicles and Construction Equipment will take place at the HUDA Ground in Gurgaon/Delhi from Decem- ber 12 to 15, 2016. At the last edition in 2014 635 exhibitors from 25 countries spread across 120,000 square metres showcased their products and services to 26,000 visitors from India and abroad. BAUMA CONEXPO INDIA gives the construction industry the most compre- hensive range of products and services in the region, the latest state- of-the-art technology and a wide range of superior- quality services for all sectors of the con- struction industry such as: all around Construction Sites, Mining, Extraction and Processing of Raw Materials, Pro- duction of Building Ma- terials and Component and Service Suppliers Presented by two of the most success- ful international trade-fair organizers: Messe München, organizer of bauma, and the North American-based Associa- tion of Equipment Manufacturers(AEM), organizer of CONEXPO-CON/AGG, their combined expertise has made BAUMA CONEXPO INDIA a must at- tend event for the international con- struction machinery industry. Get closer to India's construction machinery industry at the event in Delhi from December 12-15. $1 trillion expected investments in Indian infrastructure projects 2012 - 2017
IS IN YOUR HANDS THE SAFETY AND EFFICIENCY OF YOUR FLEET ������������������������������������������������� ������������������������������������������������������������������ ��������������������������������������������������������������� �������������������������������������������������������� ����������������������������������������������������������������� ����������������������������������������������������������������� ����������������������������������������������������������������� �������������������� ������������������������������������������ ���������������������������������
construction business news me July 2016 76 Future Interiors Qatar September 5-6, 2016 Intercontinental Hotel The City, Doha Future Interiors Qatar 2016 has been designed to showcase the latest interior design projects and opportunities for fit-outs in Qatar. With the construction of eight stadiums for the Qatar world cup well underway, millions of dollars of investment will be spent on designing and constructing commercial, retail, residential, hospitality and transportation to cater for the influx of tourists into Qatar. Cityscape Global 2016 September 6-8, 2016 Dubai World Trade Center Cityscape Global 2016 is the largest and most influential real estate investment and development event for emerging markets globally. Bringing together investors, developers, government officials and real estate professionals, there is no better place to find investment opportunities and new business partners. Cityscape Global is taking place on 6 – 8 September 2016, at the Dubai World Trade Centre, UAE, with the confer- ences taking place on September 5 at the Conrad, Dubai. Big 5 Kuwait September 25-27, 2016 Kuwait International Fair Kuwait’s US$175bn construction industry continues to grow and is poised for increased project activity, in addition to the massive infrastructure and building projects underway and in the pipeline. This market growth was reflected in the success of The Big 5 Kuwait 2015, the largest in the event’s history with a total of 7,187 participants, including 200 exhibitors across 4,700 square metre, further underpinning the show as the main event of the year within the Kuwaiti Construction industry. Infra Oman 2016 October 10-12, 2016 Oman International Exhibition Centre, Oman Infra Oman is considered as the annual meeting place for in- dustry leaders, suppliers and buyers in the Sultanate of Oman. Mark your calendar SAVE THE DATE The event has proved to be an ideal starting point not only for local companies, but also for foreign entities that are more de- termined to be part of Oman’s growing market. The 6th edition of Infra Oman will feature a mix of new events targeting com- panies involved in energy, water, waste management, recycling and sustainable solutions, manufacturing, heavy industries, mining and petrochemical sectors. Saudi Build 2016 October 17-20, 2016 Riyadh, Saudi Arabia For over 30 years, Saudi Build has been Saudi Arabia’s largest construction trade exhibition, attracting thousands of interna- tional manufacturers, exporters and businessmen, as well as tens of thousands of regional engineers, importers and industry professionals to connect and engage with the latest technology that the Kingdom’s largest sector has to offer. Middle East Concrete November 21-24, 2016 Dubai World Trade Centre Middle East Concrete is the only event dedicated to concrete in the region. The event connects professionals with leading global suppliers of high-quality concrete and precast machin- ery, chemicals, consultants, and a range of other products and services. Co-located with PMV Line and The Big 5 at Dubai World Trade Centre, MENA’s largest building and construction event, the three events together form a complete platform for all buyers across the construction spectrum. PMV Live November 21-24, 2016 Dubai World Trade Centre PMV Live is the most important heavy machinery event in the Middle East. The event connects professionals with leading global suppliers of high-quality heavy construction machin- ery, plant equipment, commercial and construction vehicles, consultants, precast machinery, and a range of other products and services. Construction Business News ME picks the latest and most sought-after exhibitions, conferences and seminars coming up in the construction industry Dubai World Trade Centre
Register now for FREE entry THE HOME OF REAL ESTATE INVESTMENT Cityscape Global 2016 is the largest and most influential real estate investment and development event for emerging markets globally. Bringing together investors, developers, government officials and real estate professionals, there is no better place to find investment opportunities and new business partners. www.cityscapeglobal.com +971 4 336 5161 info@cityscapeglobal.com Organised By Foundation Partners Platinum Sponsors Supporting Partner Regional Broadcasting Partner Research Partner Official Classified Partner Official Magazine Official Russian Publication Official Turkish Business Publications Registration Trustee Partner
construction business news me July 2016 78 Editor's pick Michael Grose is head of regional construction and projects practice at Clyde & Co. Nearly two decades after coming to Dubai, he recently authored the first book on construction law in the Gulf. He spoke to Jason O’Connell The law of the land What brought you to Dubai in 1998? I worked as a construction lawyer for five years in the UK after I completed my legal training in London. Before that I spent three years studying law at South- ampton University and a year at the Col- lege of Law in York. By 1998 I felt that it was time for a change and Dubai had the right mixture of excitement, opportunity and (most importantly) sunshine to get me to make the move. Tell us a bit about the book and the ground it covers? The book covers the issues that typically arise in a construction dispute on proj- ects in the Gulf. So it has some introduc- tory chapters on the nature of civil law and the role of the Islamic Shari'ah in the context of construction contracts as well as an introduction to the law of contract and tort. Then it covers the typical issues of dispute, such as delay, defects and payment. Along the way it covers health and safety, interest and time limits before getting into forms of dispute resolution, specifically the role of the civil courts and arbitration. The book concludes with a commentary on the FIDIC Conditions and how these are interpreted or influ- enced by the region's civil codes. What moved you to write the book in the first place? I was frustrated by the lack of easily ac- cessible information on the law when I first started advising on construction disputes in the region. I spent the first few years discovering laws or principles that were not common knowledge and so I set about a long and slow process of collecting these together. The book is the product of that initial frustration and I like to think it will contribute to a bet- ter understanding of construction law in the Gulf. How accessible is the book? Is it only for legal practitioners? The accessibility and usefulness of the book is probably for others to judge. It is certainly intended to be readable and to be laid out in a way that allows for easy use. Although the references to the rel- evant laws and judgments are probably mainly of interest to lawyers, the text it- self is aimed at anyone with an interest in construction contracts and disputes. Does the law in the Middle East differ much to elsewhere? It is certainly different to the law found in most Anglo-Saxon jurisdictions. The UAE and the rest of the GCC (excluding KSA) adopted a legal system that is much clos- er to the French civil law model. This still puts the parties' agreement at the front and centre of their legal relationship but there are some important differences of approach that are worth knowing. Does the book have the potential to help stakeholders avoid costly disputes? It wasn't a specific objective of mine to help reduce disputes, though it would be a worthwhile achievement if it has that result. My objective was to dispel some common misconceptions about the ap- plication of domestic law and to encour- age stakeholders to think about the obli- gations they are accepting. What is the most common cause of construction related disputes in this region? This is a tricky question because even a seemingly simple dispute will normally have more than one cause depending on which participant you speak to. If you take a dispute over a variation, for example, this can arise because of poor design, employer indecision, a contrac- tor's over optimistic claim or any com- bination of these. Each participant has an interest in blaming the other. If I had to boil it down to one thing, though, I would say that disputes are the price that is paid for competitive tendering and the resulting adversarial relationship be- tween the project participants. Because there are fewer long term relationships in the Gulf's building industry than in some other markets there is less reason to com- promise to find a solution to disputes. Your experience must give you a competitive edge. Why reveal your secrets? Knowledge of the law is only the starting point for being a good lawyer and most clients make an assumption that lawyers know the law anyway. So knowledge of the law provides a very limited competi- tive advantage in most jurisdictions. The real value of lawyers is in their ability to apply the law to a particular situation and no one really knows whether a lawyer is good at that until they have worked together. Construction Law in the United Arab Emirates and the Gulf will allow readers to judge this for themselves in my case. “Construction Law in the United Arab Emirates and the Gulf” is published by John Wiley & Sons, 2016
428 hp. 116 t GCW. Any questions? The new Zetros 3643 AS 6x6 Tractor Head. Trucks.MercedesBenzMe.com In recent years, the Mercedes-Benz Zetros has already set standards when it came to extreme off-road applications. The new Zetros 3643 AS 6x6 continues the long-lasting history of the Mercedes-Benz ‘Abu Booz’ in the Middle East and pushes the limits even further with a Gross Combination Weight of up to 116 tonnes. Fitted with a 315 kW (428 hp) engine and 2,100 Nm torque, the three-axle semitrailer tractor-head is ready for a broad variety of on- and off-road construction, transportation, oil & gas and government applications. And thanks to proven Mercedes-Benz components and the excellent spare parts availability across the region, it assures maximum up-time.
special feature requests heavy duty undercarriage high capacity blades unmatched ripping performance EXTREME DUTY MINING DOZERS ENGINEERED FOR YOUR BUSINESS info@dressta.com www.dressta.com Mining | Road & Highway | Forestry | Landfill | Oil & Gas ENGINEERED FOR MAKE LIGHT WORK OF HEAVY DUTY