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construction business news me // July 2017 // 3 Editor’s note News Appointments Contracts Comment Aurecon on bridge management technology Feature Building Sustainably In Person Interview with Tariq Chauhan – EFS Facilities Services Interview Ian Hauptfleisch, general manager of CCS 10 12 18 20 22 24 30 32 // contents July 2017 // Issue #29 Keep up to date with all the latest news, features and much more on our website. www.cbnme.com On the web
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// construction business news me // July 2017 8 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 Editor Jason O'Connell jason@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Sales Manager Vishvanath Shetty vish@bncpublishing.net +971 52 6745378 Marketing Executive Mark Anthony Monzon mark@bncpublishing.net PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Construction Business News ME contact sales@bncpublishing.net T +971 55 339 5097 All rights reserved © 2015. Opinions expressed are solely those of the contributors. Construction Business News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Construction Business News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Construction Business News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by International Printing Press www.ippuae.com Cover Story Power Hour: We profile the 60 leading construction companies in the region Machinery & Vehicles How Mercedes-Benz is adapting to market conditions Euro Auctions MAN Trucks Editor’s Pick 35 75 76 80 82 86
construction business news me // July 2017 // 9 TWO YEARS. WE’RE EXTENDING THE WARRANTY. For more information, please contact us at middleeast@man.eu www.man-middleeast.com Terms and Conditions apply. This campaign is not applicable in Oman.
// construction business news me // July 2017 10 // Editor's note Powering On T his month we feature our rundown of the top 60 contractors, develop- ers and industry innovators that have been keeping the regional construction sector ticking over during a dif- ficult time. It should come as no surprise that leading Dubai property developers Emaar, Nakheel, Meraas and wasl once again made it to the upper reaches of the list this year. If it wasn’t for these companies supporting the government’s vision with huge projects such as Dubai Creek Harbour, Deira Islands and Bluewaters Island, Dubai might be suffering as badly as some other parts of the region. As it is the emirate is outperforming the rest of the GCC by a considerable way. In compiling the Power Hour 2017, we have taken a number of factors into account. Where available we’ve looked at company fi- nancials, number of employees, new project launches, project completions and contract awards. We’ve taken into account each com- pany’s history in the region as well as its track record over the past 12 months. Since publishing the last Power Hour a year ago there is definitely a sense in the market that some of the worst might be over and that things are beginning to pick up again for com- panies in the construction sector. That view is supported by experts who believe the industry has turned a corner. For the next few years at least it seems construction firms can look for- ward to better times. Enjoy the issue, Jason editor’s note Jason o'Connell Editor
construction business news me // July 2017 // 11
// construction business news me // July 2017 12 For News, features and more, Visit www.CBNme.com Follow us on twitter for breaking news: @cbn_ME Follow us on Facebook for up-to-the-minute breaking news An update from around the region Project launch Update The international wing of Dubai-based developer DAM- AC Properties has been cho- sen to redevelop Muscat’s historic Port Sultan Qaboos into a $1bn mixed use project through a joint venture with government entity Omran. ‘Mina Sultan Qaboos Wa- terfront’ will become a tourist destination that in- cludes hotels, residences, as well as a dining, retail and leisure offering. A Memorandum of Un- derstanding was signed by Hussain Sajwani, Chairman of DAMAC Properties, and His Excellency Dr. Ali bin Masoud Al Sunaidy, Deputy Chairman of the Supreme Council for Planning, Minis- ter of Commerce & Industry and Chairman of Omran, in the presence of His Excel- lency Dr. Ahmed Al Futaisi, Minister of Transport & Com- munications and Omran board member, as well as other members of the Omran board and key dignitaries. “As the second largest de- veloper in the region and with a strong record of inter- national experience, DAM- AC is ideally positioned as the joint development part- ner of Omran. As part of its commitment to the project, DAMAC will contribute to the local road infrastructure, improving opportunities for local SMEs and Omani na- tionals, as well as enhanc- ing the economic and social standing of the community as a whole.” H.E. Dr. Ali Al Sunaidy, said: “Mina Sultan Qaboos Waterfront is based in the 200 year-old historical centre of commerce in Muscat and is one of the most visited tourist destinations in Oman. The redevelopment of the port by Omran will build renewed interest and focus to the area, while creating a strong investment proposi- tion for the tourism, real es- tate and leisure industries.” DAMAC has an extensive portfolio of luxury apart- ments and villas, hotels and international golf courses in its home market of the UAE, Gulf, Levant and the United Kingdom. DAMAC selected for $1bn port revamp Developer teams up with Omran to redevelop the historic Muscat waterfront
construction business news me // July 2017 // 13 Finance Drake & Scull International (DSI) has confirmed that Tabarak Investment has agreed to acquire the ma- jority shares of former CEO, Khaldoun Tabari, providing a much needed boost to the ail- ing MEP contractor which is looking to complete a capital restructuring programme. In a statement the Dubai-list- ed firm said it continues to “re- view and optimise its organ- isational structure by merging and integrating core functions across operating segments to reduce overheads, streamline costs and to improve the bot- tom line performance”. As part of the shake up the company has made a series of key appointments at both corporate and sub- sidiary levels and the new management team has been complemented with the ad- dition of Feras Kalthoum as acting chief financial officer of the Group. Phase 1 (capital reduction) Drake and Scull secures new investor of the capital restructuring programme is expected to be completed within six to seven weeks. Phase 2 (Capi- tal increase) will include the AED 500mn capital increase to accelerate the entry of Tabarak Investment LLC as a major strategic investor in the company. The company now expects to complete the programme by the end of Q3 2017. Wael Allan, CEO, Drake & Scull International, said: “We are pleased to see Tabarak Investment reaffirm their unwavering commitment to the Company. With their un- yielding support, we will ag- gressively continue to exe- cute our turnaround strategy and undertake key business transformations and strategic initiatives in collaboration with all our stakeholders. “I would like to reassure all our shareholders that the new management team is fully dedicated and geared to prepare a new phase of financial & operational re- covery. Despite the short- term challenges, the com- pany is well positioned to benefit from its leadership position in the MEP sec- tor and to secure profitable projects in the UAE market in the near future.” New acting CFO Feras Kalthoun, added: “Our im- mediate priority is to plug-in our working capital deficit; improve collection to shore- up liquidity. Our short-term goals are to streamline our business, bolster liquidity, optimize governance and transparency, and secure high-potential projects. The UAE market remains buoy- ant and we expect to prog- ress steadily with our turn- around strategy throughout the second half of the year.” Opening Foster + Partners has re- cently opened a new office in Dubai, reflecting the prac- tice’s growing role in the de- velopment of the region. Located in Dubai Design District, it will provide a re- gional base for the practice to serve clients in the Emirate. Foster + Partners’ first proj- ect to be built in Dubai was The Index, which was com- Foster + Partners opens Dubai branch missioned in 2004. The firm is now working on the mobility pavilion for Expo 2020. Gerard Evenden, Head of Studio, said: “Dubai is emerging as a global hub for the design and construction industry, exemplified by the varied scope and breadth of our projects in the region. The opening of our new office in the city reflects our commitment and belief in Dubai as a centre for design and in- novation.”
// NEWS // construction business news me // July 2017 14 Ground breaking Dubai Properties has begun work on the new Marasi Business Bay marina with the installation of pontoons. Launched by Dubai Holding and Dubai Properties Group in May 2016, the AED 1bn ($272mn) mixed-use project located on Dubai Water Ca- nal features water homes and floating restaurants. The project hosts the Park, the Pier and the Marina that will eventually comprise 800 berths in total. Set for comple- Work begins on Marasi business bay marina tion in Q3 2017, the first phase of the marina will feature 157 berths varying in size from eight metres to 35 metres. Speaking at the ground breaking ceremony, Abdulla Lahej, Group CEO of Dubai Properties, said: “The new marina at Marasi Business Bay will leverage latest advances in construction and engineering for its on-schedule comple- tion, offering the city a new ac- tive urban lifestyle dimension and waterfront destination.” Marasi Business Bay marina will be constructed using state- of-the-art Seaflex technology, making it one of the few ma- rinas in the country to employ the innovative environmen- tally friendly mooring solution. Seaflex provides secure moorings even under the worst weather conditions. The stable and secure self- regulating system elongates and retracts in a smooth, even movement according to the water levels. 6 Towers 772 apartments $111mn cost 17 months completion time Araco begins JVC project // In Numbers Milestone Excavation and shoring works for the first phase of the AED 3bn ($816mn) Mirdif Hills proj- ect have been completed. Phase one of the project, which is being built by Engineering Contracting Company (ECC), in- cludes 1,054 apartments in Janay- en Avenue, Nasayem Avenue, and Al Multaqa Avenue. Mirdif Hills early works complete 128 serviced apartments; and a 230-bed hospital. Developer Dubai Invest- ments Real Estate Company (DIRC) plans to launch the sale of Nasayem Avenue short- ly, which will feature units ranging from two- and three- bedroom apartments to three- and four-bedroom duplexes. and ground floor slabs are in progress. The whole project is scheduled for full comple- tion by the end of 2018. Spanning an area of 3.9 million square feet, the proj- ect comprises studio, one-, two-, three-bedroom, and duplex apartments; a four- star hotel with 116 rooms; Foundation works for Janayen and Nasayem av- enues are nearly 75 percent complete as at May 2017
construction business news me // July 2017 // 15 Announcement Clean energy Abu Dhabi unveils Yas Arena plans Designs have been re- vealed for Yas Arena, the first multipurpose built are- na in Abu Dhabi that will accommodate a variety of major sporting and enter- tainment events. WSP is leading a team re- sponsible for delivering the design alongside architects HOK with support from Pascall+Watson. The team was engaged by Miral Asset Management, the entity responsible for the development of the broad southern part of Yas Island. In addition to the architec- tural design of Yas Arena, HOK designed the adjacent arena retail and dining desti- nation along the boardwalk, forming a mixed-use anchor on the east end of Yas Bay. “Our goal is to create an ex- ceptional entertainment ex- perience for fans and spec- tators,” said John Rhodes, a director of HOK’s Sports + Recreation + Entertainment practice. “Yas Arena will be the centerpiece of the devel- opment and serve as a desti- nation on Yas Island.” “Our team knew the build- ing needed to be smart, adaptable and technologi- cally-advanced in order to efficiently transform for the ACWA Power has reportedly submitted the lowest bid for the fourth phase of Dubai’s Mohammed bin Rashid Al Maktoum Solar Park. Dubai Electricity and Water Authority (DEWA) received a low bid of $9.45 cents per kilo- watt hour (kW/h) for the 200 MW Concentrated Solar Plant (CSP) plant. Bids from four international consortiums were opened to- day at DEWA head office, the utility said in a statement. Various media reports said the lowest bid was submitted by Saudi Arabia-based energy company ACWA Power, the same company that won phase 2 of the solar park. The plant will be operational by April 2021, with other CSP projects eventually generating a total of 1,000MW by 2030. The Mohammed bin Rashid Al Maktoum Solar Park is the biggest single-site solar park in the world that is based on the IPP model. It will gener- ate 1,000MW by 2020 and 5,000MW by 2030. The 200MW photovoltaic second phase of the solar park was launched in March 2017. The 800MW photovoltaic third phase will be operational by 2020, and the 200MW CSP fourth phase will be operation- al by 2021. wide variety of events the client wished to host,” added Rhodes. “This transformabil- ity will make Yas Arena one of the most sophisticated arenas in the world.” The arena is designed to expand from an intimate 500- seat theater to an 18,000-ca- pacity venue, maximizing revenue and supporting a wide variety of events. Additional amenities, in- cluding food and beverage, will be located adjacent to the arena to create a linear street that stretches down the waterfront promenade. This outdoor concourse will create a festival-like at- mosphere to generate year- round activity. The outdoor concourse will provide con- nectivity to the surrounding district on Yas Bay. Yas Island is a multipur- pose leisure, shopping and entertainment destination that includes a hotel cluster, the Yas Marina F1 circuit and a growing number of theme parks. Yas Arena will be lo- cated directly on the water- front and serve as an anchor for the promenade that will feature more than 50 cafes and restaurants, 20 retail out- lets, a recreational pier, two hotels and a beach club. Faithful+Gould has been appointed to provide proj- ect management services on part of Miral’s new AED 12bn ($3.26bn) master de- velopment in Abu Dhabi. Yas Bay will be deliv- ered in two phases and Faithful+Gould’s four-year appointment is to work on phase one which includes the Yas Arena, in addition to a 650-key hotel, re- tail outlets and a cinema. Phase one is expected to open in 2019. The con- sultancy’s services include design, construction, logis- tics, project, programme and health safety and security (HSSE) manage- ment across pre-and post- contract phases. The overall master plan for Yas Bay Development will comprise of a 5-star family hotel resort, lifestyle hotel, arena and retail/ food and beverage across a pier, promenade and waterfront areas. These as- sets entail the addition of approximately 900 keys, inclusive of conference fa- cilities, as well as a 3.2 mil- lion square foot TwoFour FiftyFour media zone for 10,000 professionals and residential developments for 15,000 residents. Campbell Gray, Faithful+Gould Middle East managing director, said: “Miral has a clear objective for Yas South to become a globally recog- nised leisure and enter- tainment destination, inte- gral to Abu Dhabi Vision 2030, and we are really excited to be a part of that. F+G to project manage Yas Bay DEWA receives bids for Solar Park phase 4
// NEWS // construction business news me // July 2017 16 Building Technology 3D printed buildings coming in 2018 Top 5 Web Stories Doka Ventures, a sister company of form- work specialist Doka, has announced that it has taken a 30 percent share in Contour Crafting Corporation as the two compa- nies prepare to deliver the world’s first production series-ready robotic 3D con- struction printers early next year. Deployed in the field, the system will initially print building shells layer by layer and are designed for use wherever ac- commodation and infrastructure have to be provided rapidly and affordably. The brainchild of inventor and Contour Craft- ing Corporation CEO Behrokh Khoshn- evis, the 400 kg robotic 3D construction printers could reduce the time it takes to construct buildings to mere hours or days. As well as manufacturing and selling the 3D construction printers, Contour Crafting Corporation also intends to provide on- site building construction as a service. According to Khoshnevis, the system can be easily assembled on-site and an or- dinary truck or a standard marine-freight shipping container could carry several of Al Shirawi hires US training specialist Nshama nears handover Phase 1 of Town Square project in Dubai Meraas nets record fee for Bulgari penthouse Dubai ruler reviews tower progress Parsons contracted for $1bn project in Dubai DEWA receives solar park bids 1 2 3 4 5 www.cbnme.com the robots at one time. Only one or two operators certified are needed to monitor progress on the build, he added. The systems are manufactured in Los Angeles, California and are being mar- keted to developers and contractors. Po- tential applications include the construc- tion of social housing and infrastructure as well as providing rapidly built structures in areas that are undergoing disaster relief. “The first orders are already in the books,” confirmed Werner Bittner, execu- tive board member of Doka Ventures and newly appointed chairman of the board of directors of Contour Crafting Corporation. // Snapshot
construction business news me // July 2017 // 17 Ground breaking Airolink has started con- struction work on a pair of schools with a combined development value exceed- ing AED 275mn ($75mn) at a 10-acre site on a new ‘super campus’ in Dubai. Brighton College UK and Dwight School New York will open branches in Dubai in September 2018 with a combined enrolment capac- ity of up to 4,000 students. The campus will be of G+3 floor height and will be spread across a large area to allow ample car parking, landscaping and greenery Construction starts on $75mn Dubai schools with extensive sports facilities. The 89,000 square metres (257,227.57 square feet) campus with a built-up area of 510,000 square feet, will also accommodate the Centre of Excellence for Ar- abic Language, Culture and the Arts. Dr Anil G. Pillai, chairman and managing director of Airolink, said: “Airolink has created a niche for itself in the construction of educa- tional campuses and the lat- est contract from Bloom Ed- ucation is a living testimony to our expertise in this field. “Educational institutes re- quire a completely different set of designers, architects, consultants and engineering as these projects will help groom the future genera- tions and we give very de- tailed attention to each of the aspects. “Our engineers, construc- tion supervisors and proj- ect managers are working with a collective pool of 500 workers and technicians to complete the project on time by July 2018 – ahead of the new academic year begin- ning in September 2018.” Emaar Properties has announced plans to offer up to 30 percent of its real estate business through a share offering on the Dubai Finan- cial Market (DFM) with the bulk of the funds raised to be distributed to shareholders. The move will allows investors who value Emaar’s proven track record to benefit from the strong growth profile of the company’s UAE development business, the company said in a statement. Emaar’s real estate develop- ment in UAE has recorded sig- nificant growth over last five years. Sales increased from AED 4.2bn ($1.14bn) in 2012 to AED 14.4bn in 2016. Until end of May 2017, the business recorded sales of AED 9.7bn, 24 percent above the same period in 2016. The company has several mega- developments ongoing in Dubai in- cluding Dubai Hills Estate, developed as a joint venture with Meraas Hold- ing. Emaar is also developing The Tower in Dubai Creek Harbour, which will overtake its own Burj Khalifa as the tallest building in the world. Emaar plots path to real estate IPO // Bitesize news Saudi Arabia’s high speed Haramain Express Train has been tested successfully and is on track for completion by the end of the year. Greenline Interiors (GLI) wins AED 140mn ($38mn) contracts for the Wafi Hotel project in Dubai and Shaza Hotel in Riyadh. China Construction Bank (CCB) chairman Guo You rings the market-opening bell to celebrate the listing of a $1.2bn bond on Nasdaq Dubai. wasl Asset Management Group plans to build a ‘resort style’ staff accommodation project in Warsan with almost 4,000 units.
// construction business news me // July 2017 18 // Appointments Former DAMAC Properties managing director Ziad El Chaar has been appointed CEO of Saudi Arabia’s Dar Al Arkan Real Estate Devel- opment. He replaces Abdul- rehman Hamad Al-Harkan, who resigned last month as CEO of Dar Al Arkan. The experienced El Chaar joined Dubai-based DAMAC Prop- erties in 2005 and became managing director in 2011. It was announced last month that he had resigned his post though it was not re- vealed where he was going. El Chaar has over 16 years’ experience in real estate de- velopment and has worked on a wide variety of projects in the Middle East. Alan Talabani has been appointed as regional managing director for the Middle East at Turner & Townsend, following the retirement of Mike Collings. Alan set up the professional services company’s Abu Dhabi office in 2008 and has been instrumental in driving significant growth in the region – most recently in his role as UAE Country Manager, overseeing both the Abu Dhabi and Dubai offices. Under his leadership Turner & Townsend has advised on major in- frastructure schemes in the UAE, in particular key aviation programmes. Siemens has appointed Jean-Claude Nasr as senior executive vice president of the company’s Power Generation division in the Middle East. Based in Dubai, the 52-year-old will take over from Jeff Dunlap, who will move to the US to undertake new responsibilities at Siemens. Nasr has a wealth of experience spanning more than 20 years in power generation, oil and gas, and energy man- agement. “Nasr’s sector and leadership experience will be invaluable in building more affordable, reliable and highly-efficient power plants in the region,” said Dietmar Siersdorfer, CEO of Siemens Middle East and UAE. Project management software specialist Aconex has named Baraq Hadi, previously vice president at Bentley Systems, as gen- eral manager of its Middle East business which contributed AUD 12.2mn to the company's total revenue for the first half of the financial year ending June 30. Hadi re- ports to Henry Jones, senior vice president of Europe, Middle East and Africa (EMEA) and global accounts. "We are fortunate to have hired an executive of Baraq Hadi's caliber to lead this strategically and finan- cially important region for us," said Jones. Ziad El Chaar joins Saudi developer Dar Al Arkan Turner & Townsend names MD for the Middle East Siemens appoints new head of powergen Aconex appoints new Middle East GM Movers and shakers in the industry Appointments
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// construction business news me // July 2017 20 // Contracts Contracts Jumeirah Golf Estates (JGE) has appointed Progress Constructions to build the town- houses and retail centre of its residential community, Alandalus. The award means the 95 townhouses are on track for hando- ver in September 2018. Yousuf Kazim, CEO of Jumeirah Golf Estates said: “We have made remarkable progress in construction of Alandalus buildings thus far. Considering the strong track record of Progress Construc- tion LLC, we are confident that we will be equally effective in our delivery of the town- houses and retail centre for our investors.” Master developer Nakheel has released a construction tender for Nad Al Sheba Mall which will have 200 shops, a supermarket, department stores, multi-screen cinema, medical clinic and fitness centre spread across 500,000 sq ft of shop space. Construction of the project is expected to begin in Q4 2017, with completion in 2020. Located just off Sheikh Mohammed Bin Zayed Road, it will be the centrepiece of Nad Al Sheba, a community with around 11,500 high-end villas. Dubai Investments has awarded Arabtec Construction with the con- tract for earth works grading and leveling of the roads for The Pali- sades project in Dubai Investments Park (DIP). Grading work is almost 45 percent done and expected to be complete by September 2017. The mixed-use project is spread across 13 million square feet with a total built-up area of approximately 22 million square feet and offers a range of residential, retail, office & recreational attractions. Dubai Electricity and Water Authority (DEWA) has awarded EDF of France with a AED 58mn ($15.8mn) consultancy contract for the 250MW hydroelectric power station at Hatta Dam, the first of its kind in the Arabian Gulf. EDF’s con- tract covers design, hydro-geological, geologi- cal, environmental, geotechnical, and deep ex- cavation studies. It also includes consultancy on deep-water tunnel designs, the dam and hydro- electric power station, the tender for material supply, supervision of construction work, site installation, on-site testing and commissioning. Bloom Properties has appointed Emirates Link Maltauro to build its Soho Square urban development on Saadiyat island in Abu Dhabi. Work is underway on the mixed use proj- ect in the city’s university neighbour- hood. Soho Square will feature 302 high-end residences upon comple- tion, as well as raft of commercial and retail facilities and amenities including restaurants, a swimming pool and a fitness center. Progress Construction bags townhouse contract Nakheel tenders contract for Nad Al Sheba Mall Arabtec contracted for The Palisades in DIP DEWA signs EDF for hydroelectric consultancy work Bloom awards Soho Square contract
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// construction business news me // July 2017 22 // Comment Getting the best out of bridge management technology in the Middle East By David Moore, Technical Director – Infrastructure, Aurecon Bridging the Gap U sing technology to plan the construction, operation and maintenance of bridges is not new. But as in so many other areas of engineering, construction and asset management, the industry has yet to take advantage of the latest technol- ogy or the Big Data that is available. In rapidly developing markets, a need to better manage infrastructure such as roads, tunnels, and bridges is changing the way they are managed. And one tool that is increasingly de- livering seamless and integrated asset management is a Bridge Management System or BMS. Connecting to the future with BMS A bridge management system is a collection of data that assists users in making decisions. Having access to recent, relevant and contextual data for a structure’s condition helps users make the correct decision and select the most beneficial intervention. It will also help us develop truly intel- ligent infrastructure. As technology advances, systems improve, and costs reduce, BMS is playing a greater role in safely and ef- fectively managing transport infrastruc- ture. Bridges designed using Building Information Modelling (BIM) already utilise this in many of today’s BMS. The modern BMS also integrate other technologies such as high resolution imagery, mobile data capture and vir- tual reality/augmented reality. Other emerging technologies sug- gest further efficiencies in BMS of the future. For example, using Internet of Things (IoT) technology, the ten- sion of steel suspension cables or a corrosion ‘hotspot’ may be recorded via an inbuilt sensor. The data from these sensors can be collected and subsequently modelled in a graphical BIM display. This will eventually lead to real-time monitoring of structures, and further reduce the time it takes to discover and solve problems. BMS in the Middle East The rise in the number of bridges in the Gulf area serves as a useful indica- tor for the rapid development that has taken place in the region since 2006. Up until 1999, there were only about 40 operational bridges in Dubai. Since then, more than 400 new bridges have been constructed. In general, Abu Dhabi and Qatar have followed the same trend, with the latter undergoing a rapid expansion. However, until as recently as 2009, many Transport Authorities in the GCC struggled to cope with the maintenance and inspection of their structures, largely because their man- agement systems were paper-based. These traditional systems are time- consuming and make it difficult to prioritise repair work or predict future maintenance budgets. Fortunately, thanks to technological advances, a modern BMS allows easier management of assets in a systematic and customised way, over the com- plete life cycle of a structure. The most important benefit of a modern BMS is its ability to optimise the limited bud- gets of road authorities. The system allows for more ef- ficient planning of maintenance, repair and rehabilitation activities. By analysing the data tracked in a BMS, government offices can set spend- ing limits; allocate work to a specific period; generate reports; or analyse repair costs for a specific component, whole bridge, or even network of bridges. On top of this, a BMS can be extended to other assets, such as tunnels, pedestrian bridges, culverts, camel underpasses and more. Over the past few years, Aurecon has applied its experience as a lead- ing global engineering and infra- structure advisory firm to develop highly advanced BMS for clients, enhancing existing software to cre- ate bespoke systems. Implementing a BMS can transform how asset management is conducted.
construction business news me // July 2017 // 23 • System adaptability Having a system that can adapt to new business requirements and op- erational improvements will ensure scalability and a better return on investment over a longer lifespan. This means the BMS should be developed through a total adaptive approach for all of its modules. At the end-user side, this will include the ability to edit forms and screens, making them easy to modify without the need for programming. • Integration across multiple systems Using multiple software systems is common in large government departments, so seamless integration between them is essential for correct contextual information and to avoid data duplication. Therefore, any BMS must be able to rapidly and safely integrate across multiple data resources. • Enterprise change management Although not a digital enhancement, the importance of incorporating enterprise change management into the implementation of a BMS should not be overlooked. Change manage- ment experts should first conduct stakeholder workshops using design-led thinking. A needs analysis can then identify skill gaps and the impact of the BMS on any business processes, and especially on other enterprise systems, such as Maximo, GIS and Abnormal Load systems. This process can drive the develop- ment of the BMS architecture to suit an organisation’s business functions. Future needs drive developments As our smart cities take shape across the globe and for the betterment of society it is essential that our infra- structure not only keep pace – but lead. BMS will be an influential part of our future infrastructure world that will deliver better performance and reliabil- ity for owners, operators and users. For instance, in one case, a govern- ment road authority was able to adjust its Principle Inspections (up-close visual inspections with use of traffic management and access equipment as necessary) timing so these were required only every 5 years. From there, 5-year maintenance budgets were generated, allowing the authority better oversight of its budget. Tools of the trade An effective BMS allows field staff to use mobile devices for inventory and inspection data collection. Allowing field data to be downloaded and up- loaded via mobile devices minimises inspectors’ time in the office, reduces error, and allows faster identification of any potential safety concern. Aurecon’s extensive experience in customising and implementing BMS in the GCC has allowed our engineers and asset managers to develop a suite of key understandings: • Web-based is key Using a web-based solution allows the user to access the BMS from any computer with internet access. Previ- ously, desktop systems were based on Microsoft Windows platforms but this can be cumbersome to manage for IT departments. A web-based system allows better tailoring of security and system maintenance re- quirements, and maintenance of all asset management needs. The look and feel of a web-based system can be adapted and remains responsive under all operational scenarios. • Separate systems for structural and electromechanical As we incorporate new construction methods and materials, we are faced with unique challenges in the main- tenance of both structural and elec- tromechanical systems. The manage- ment of each should be handled separately, ideally by splitting them into two modules. Independent in- ventory, inspection and maintenance processes should be developed for both, then recombined to deliver a unified approach. Meydan Bridge
// construction business news me // July 2017 24 Building Sustainably Why are we so poor at sustainability when it comes to construction? Scott Coombes: It’s not necessar- ily that we’re poor but we have to remember that we’re in an extremely harsh climate here. The fact that we were able to live here at all shows we’re quite advanced. But then we started to design buildings that were less applicable to this climate and as a result we’ve created buildings that from the energy perspective are not very sustainable. That being said there is also a misconception about sustainability being purely about energy performance. We’re also talk- ing about a sustainable economy, for example diversification away from oil which we need to do. with the technology available, why are we pumping cold air into buildings all year round when we don’t need to? Tushant Suri: Over engineering and oversizing of MEP equipment is cer- tainly a risk that the region is facing. There’s a huge gap between how buildings are designed and how they are operated. There is a gap between the operations phase and design and construction phase and that’s where we’re losing out and increasing the carbon footprint. Are end users reluctant to pay the increased costs associated with building sustainably? Farah Naz: It’s the responsibility of engineers and architects to understand the operation of the building. Often buildings are overdesigned and the operational data is not understood properly so buildings are used in a dif- ferent way to how they were designed. // Construction innovation Forum 2017 While Dubai was ranked first out of eight Middle East cities covered in the recent Sustainable Cities Index report, it came in a lowly 52nd globally while other regional cities lag way be- hind. With sustainability one of the central themes of Expo 2020, how will one of the fastest growing economies in the world transform itself into one of the most sustainable and will others follow suit? We put these questions and more to a panel of experts at the recent Construction Innovation Forum.
construction business news me // July 2017 // 25 To reduce that gap between the operational and design cost it’s very important for engineers to understand how the building will be practically used and what the key risk factors are. Having an integrated design process is very important. Technology is not always great. Understanding it and making conscious design decisions are very important to keep the operational cost down. Often there is a communi- cation gap and I would suggest that’s the main reason for the disparity. Scott: Absolutely. I completely dis- agree that an energy efficient build- ing should be more expensive. It’s something you hear a lot but I think it’s entirely wrong. The problem is that you have a certain design aesthetic that’s informing the type of building you want, and very often that aesthetic is inappropriate for the climate that we’re in. That’s when you end up with an inefficient building. There’s no point building a green house and then trying to make it a sustainable building or a LEED certified building. Dan Palmer: The way we look at sus- tainable building design is that it’s just a well-designed building. You don’t need to add all these extra things to create a well-designed building which then becomes sustainable. There’s no point in designing a really well de- signed building that’s passed on to the contractor who then goes and builds anything. This is a challenge that we’re facing. There needs to be education at each stage of the process so that when we first go into the design stage we’re not just thinking about sustainability as a box ticking exercise. Integrating sustainability within the full design process is vital. To get to a LEED silver or an Estidama 2 or 3 Pearl rating we’re not adding anything different to what we normally put in a well designed building. We’ve got a lot of older buildings within the market in Dubai and Abu Dhabi, a lot of clients are coming back to us now and asking how they can make it work better. It’s not just about new buildings but also existing build- ings. And it’s also about the attitude of the people within the building. Ciaran McCormack: The perception is that sustainability and green building practices come at a premium. That’s the industry mentality but it’s not nec- essarily true. If you look at both ends of the spectrum – LEED certified ver- sus a zero energy building – there’s a big variance in cost but LEED certified can be achieved at no additional pre- mium to a traditional building. Some of the more elaborate technologies associated with zero energy buildings would come at a premium. But there is a mindset that sustainability always equals additional cost. It is very difficult to convince clients to invest up front. They see the initial capital cost as prohibitive to engage in the best practices. But we ask our cli- ents to look at the long term goal, the entire lifecycle costs, which are key to the decision making process. The cost- ing element will take into account the operation and maintenance costs over the lifecycle, but in tandem with that we should also look at the environ- mental cost. You come up then with a more reasonable basis for choosing one technology over another. Are we likely to see more government regulation? Scott: It will come. The traditional economic model is that a rise in GDP is proportional to the release of carbon emissions. The idea now is to continue to grow GDP while reducing carbon emissions and to do that you need more sustainable buildings. That will come with more involvement from the government. Can we retrofit thousands of buildings in Dubai? Farah: The existing building stock is a big question, not just in Dubai but in many other cities in the world. Currently in Dubai there are different universities researching the most ef- fective way to retrofit existing residen- tial and commercial properties. We do think that there will be legislation coming to offer more incentives and to educate the population. Buildings don’t consume energy, people do and it’s our lifestyle choices that makes a building consume a lot of energy. We do think that top down legislation will eventually come to make it more of a reality.
// construction business news me // July 2017 26 Scott: In Europe people burn gas in their homes but here we run almost entirely off the grid. There’s a huge opportunity to fix things upstream at the power plant by not burning gas and fossil fuels but instead using photovol- taic panels and building solar farms. That’s probably by far the easiest way to solve the problem. Because in Dubai there are 125,000 existing buildings and to retrofit them all would be extremely difficult. But to change the way the grid works is an easier step. Is cost still the major barrier to sustainable building? Tushant: Introducing sustainability in the region is a process. The best way to achieve this is that the developer needs to be a very KPI driven client and I’m sure Masdar is one of the best examples of that. Their KPIs are asso- ciated with energy emissions and car- bon and that’s what the contractor is required to achieve. The second thing is early engagement of all stakeholders and that’s where the design and build contract comes into play. The region is definitely moving beyond the build only contractual arrangement. With the design and build there’s a lot more connect and sharing of information between what’s required pre-build and what’s been designed. There’s a lot more control for the client, less risk for the client and it makes things easier for the contractor as well. Ciaran: The mindset is changing. Tech- nologies can come at a premium but they will become the norm and clients will accept the design and cost impli- cations and will be willing to invest by looking at the lifecycle. How difficult is it to educate end users? Dan: The way we need to start think- ing about sustainability is that it’s not about adding cost but about adding value. It’s not just about looking at how efficient your building is. We look at public transportation access, walkable communities, access to open space, activity spaces for people so that they can live healthy lifestyles. The building comes after that. Once the building is placed into that sort of environment you’re already one step ahead in terms of designing a sus- tainable community as a whole. The problem here in Dubai is that people rely on cars a lot. Tushant: Developers definitely under- stand the intangible benefits that come with sustainability, however there’s still a process of understanding the tangi- ble benefits and what the region needs to do is push beyond legal compli- ance with Dubai’s building regulations. Something which has been proven in other parts of the world is driving sustainability through initiatives such as the neighbourhood rating system In association with Platinum Sponsor Developer Partner Held Under the patronage of Gold Sponsors Silver Sponsor // Construction innovation Forum 2017
construction business news me // July 2017 // 27 MEET THE PANELISTS Scott Coombes – Director - AESG Scott Coombes is a Director at AESG, a firm specialising in reducing the ecological footprint of the built environment. He has been involved in managing and directing a variety of sustainability, energy, commissioning, environmental and government advisory projects throughout the Middle East. These have included some of the largest and most prestigious master plan developments in the region, high-rise buildings, housing developments and critical infrastructure. Dan Palmer - Director Master Planning and Sustainability - Arcadis Daniel Palmer works at Arcadis as the Director Master Planning and Sustainability. He has been an elected member of the Royal Town Planning Institute since 2006 and has been providing urban planning and sustainable services to both public and private sector clients for over 15 years. This experience has allowed him to gain a rounded understanding of the planning and sustainable development field throughout the globe. Ciaran McCormack – Director - Linesight Ciaran joined Linesight in 2000. During this time, he has specialised in cost and project management consultancy services, working on many public and private sector landmark developments. His experience spans a broad range of sectors, including industrial, pharma, commercial, and leisure. Ciaran specialises in project controls, program and cost management, risk analysis, value engineering, and procurement. He is currently a Director for Linesight’s Middle East operations, providing expert guidance across the region. Farah Naz - Sustainability Associate - BuroHappold Farah Naz is a Sustainability Associate with BuroHappold Engineering Consulting, Dubai and is currently working on iconic projects like Louvre Museum in Abu Dhabi, BEE’ah Headquarters, Museum of the Future, Sharjah, King Abdul Aziz Centre for innovation, KSA and Heart of Doha, Qatar and Masdar City. Farah is a board member of the Emirates Green building Council (EGBC), Member of CIBSE Resilient Cities Group and CIBSE Council, UK. Tushant Suri - Senior Sustainability Coordinator - Multiplex Tushant holds a Bachelor’s Degree in Mechanical Engineering and a Master’s degree in Renewable Energy & Architecture from the University of Nottingham, UK. He is an Estidama Pearl Qualified Professional, LEED AP and Green Globe Professional. He was involved in sustainable design and construction of key projects in the Middle East and India, including IRENA Headquarters in Abu Dhabi and the Meaisem City Centre - the first LEED Platinum retail development in Dubai.
// construction business news me // July 2017 28 in Australia or in Singapore where the owners needs to display the EUI (en- ergy use intensity) of their asset when they lease it. So as a tenant I have the luxury of seeing the energy consump- tion per square feet of the property so I can choose between them. Why aren’t we engaging with asset operators from the design stage? Scott: I would agree there is a problem In association with Platinum Sponsor Developer Partner Held Under the patronage of Gold Sponsors Silver Sponsor there. I’ve noticed in the past year or two some larger developers, particu- larly when building big assets like shopping malls or airports, are starting to see the value in making sure there is a proper hand over of documenta- tion to the FM team. I think when the success of that starts to get realised I would hope that it would become more common place. Dan: The handover of documentation is key but by integrating them in the design process you learn lessons from other projects. We’re working with a number of the big developers now and that’s one of the first meetings we tend to have is with the Facilities Managers about their existing assets to find out what worked and what doesn’t work. Because there’s no point us designing a really efficient building if that’s not how they operate their buildings. Tak- ing their knowledge into consideration within the design stages is essential. // Construction innovation Forum 2017
Delivering National Pride The United Arab Emirates Pavilion at EXPO 2015 in Milan, designed by the world-famous architecture studio Foster +Partners, takes its inspiration from the desert landscape and the highly innovative and futuristic ���������������������������������������������������������������������������� be relocated to the UAE. After a successful delivery in Milan, the Pavilion has been distmantled and relocated to Masdar City. Now, we are working on the ultimate reconstruction of the Pavilion, to showcase sustainability projects embracing UAE’s National Pride. We are very proud to be a part of this ambitious mission. www.cimolairimond.me | info@cimolairimond.me For the past decade, we’ve provided integrated turnkey construction services for highly challeging and complex projects to make our Clients‘ vision a reality.
// construction business news me // July 2017 30 EFS Facilities Services' group CEO, Tariq Chauhan, explains how he puts the company on the fast track to regional dominance Cleaning Up I n less than 10 years Tariq Chau- han has turned EFS Facilities Services from a company working in just four countries to one that will be operating in 30 territories by the end of this year. From Morocco to India, Turkey to South Africa, EFS is fast becoming a facilities management company of choice for many multina- tionals. This year the company took its contract backlog beyond the $1bn mark for the first time. Chauhan has created a strategy around EFS that is primarily built on three things: deliverance, prudence and sustainability. “In any service industry you’ve got to continuously deliver on your con- tracts,” he says. “The enterprise has to be prudent to make money. And even- tually when these two combine you build a sustainable enterprise. We took over a company of $75 – $80mn in 2009 to $1bn in contract backlog and about $255mn in revenue. This has been built over a period of time, not just by me alone but with the empow- erment of the shareholders and a fine team around me and the finest clients.” EFS owes a large part of its success to its stellar roster of blue chip clients, around 70 percent of which are Global Fortune 500 companies, which helps EFS to collects its money within 60-70 days. Operating across three conti- nents with complete service delivery, EFS is the only outfit that has boots on the ground across such a wide geogra- phy, Chauhan says. It has maintained 98 percent contract retention and is growing at 20 percent compound an- nual growth. EFS is building a truly integrated FM enterprise, something which Chau- han says was badly needed by many global supply chain partners. Some of its clients include banking giants such as HSBC, Citybank, Credit Suisse and Barclays. It also works with GE, Boeing, Google, AIG, Allan & Overy, Proctor and Gamble and Pfizer. The business has expanded rapidly, both vertically and horizontally, adding new businesses and new segments. For example, it now does airports such as Salalah in Oman. “EFS is one of the only players with a true pedigree combining global knowledge, local experience and regional presence,” Chauhan says. “It’s uncommon to have all of these. The business is about 17,000 people now. That’s significant.” The diversification drive came about because EFS wanted to follow the footprint of global multinationals that were looking for a supply chain. “They were looking for a single ven- dor, an integrated services company with a standardised approach and a one touch model,” Chauhan says. “Compliance was a major challenge // In person The industry will continue to grow for the next 10 – 15 years. I don’t see a challenge”
construction business news me // July 2017 // 31 for most of these multinationals. To build that credibility of compliance – in terms of HR, systems and processes, country compliance, governance lev- els, zero tolerance on HSE and so on - across geographies was very difficult to find in the supply chain and that’s what EFS became.” Even by its own standards EFS has seen a very strong first half of the year. In 2016 the firm saw 20 percent growth in sales but this year that has risen closer to 35 percent. Chauhan puts the success down to the six months of bidding and engagement to win new contracts. The facilities management business has been growing steadily at 8 – 10 percent on a global basis but this part of the world has been growing much faster primarily because of new build- ings, Chauhan says. However there is also a portion of growth that has come from companies using FM as a tool for cost efficiency. “The industry will continue to grow for the next 10 – 15 years, I don’t see a challenge,” he says. “Even in an envi- ronment with negative growth people look for cost cutting measures so they realise FM is the right tool for that. So this business is not directly dependent on economic growth. Outsourcing has traditionally been a tool for cost reduc- tion and improved efficiencies. For example, technology plays an impor- tant role, moving from man hours to machine hours in cleaning there is a dramatic change in cost. Elements like these bring cost efficiency.” EFS has launched a business process called FM Pro for clients looking for fully integrated services under a single interface. That considerably changes three things that improve efficiency: It reduces downtime; reduces paper- work; and provides live information. Another area where efficiencies have been made has been through automation. An average ride on floor cleaning machine can cover 14,000 sq ft in an hour whereas an average person can do just 1,000 sq ft. And there are cleaning machines now that use steam, saving on a lot of water. Other efficiency gains have been made through the use of equipment, such as exchanging a manual screwdriver for an electric one or using lazers instead of tape to measure the size of an area. EFS aims to remain a preferred choice for those looking to expand within the Middle East and South Asia and Africa. The second pillar of its strategy moving forward is to strength- en the supply chain through acquiring some services that it is currently out- sourcing, such as engineering services. Thirdly, EFS plans to strengthen its workforce and their skillsets and to retain and develop talent. This last topic is one that is clearly dear to Chauhan’s heart, and one that he talks about with great passion. EFS has introduced a financial planning and savings scheme for its blue collar workers, which make up a huge por- tion of its workforce. “People organisation is a very critical priority for us,” says Chauhan. “If you have a large blue collar work force, how do you build an organisation with sustainable human values? We help our workers with financial, health and psychological counselling. I also have a happiness manager in the organisation.” EFS has a strong track record of progression. Almost 280 people in the past three years have moved from being cleaners to higher levels within the company and there has been a 300 percent jump in their compensation as a result. “It’s important to engage these workers,” Chauhan adds. “Every year we organise a carnival for all our employees. Everyone sits at the same table and eats the same food. I go at least four times a year to my camps to have breakfast with the labourers. This is one of the most important is- sues for me.”
// construction business news me // July 2017 32 // Interview READY FOR VAT I t has been almost a decade since Ian Hauptfleisch moved from Construction Computer Software’s (CCS) Cape Town office where he was directly responsible for the product develop- ment of its successful CCS Candy software used by thousands of Users worldwide every day. Currently the general manager of CCS’s Gulf operations in MENA and India, he is helping contractors to understand how they can use the company’s software and services such as the estimating and project pack- age Candy and the web-based ERP construction accounting and costing solution BuildSmart to get greater control of their costs in a dynamic and sometimes challenging environment. “The construction industry is a challenging one with low margins and high risks attributable to many unknowns, variables and complex- ity under immense time and resource restraints,” he explains. “So, increased accuracy, speed, auditability and consistency of construction estimation and cost control information, data and analysis is essential and of priority to any contracting organisation.” With VAT set to be introduced at the beginning of 2018 in the GCC, businesses will soon be able to begin the process of registration. Now is the time to start preparing for the new levy and Hauptfleisch says that CCS Gulf is ready to help. He explains that being able to draw on its vast background of working in a variety of international markets means CCS’ solutions have been tried and tested extensively. “With our extensive experience in financial and construction-specific management accounting and costing, CCS products are easily customised to country specific legislative and statu- tory criteria, for example WPS and Gratuity in the UAE,” he comments. “VAT, like GST (planned for India in July 2017), is by no means a new con- cept to us being applicable in many African countries including South Africa and the UK where we have an extensive Client and User base.” “VAT may be new to the GCC but its application in concept is gener- ally a norm in the countries it’s used and works on the principle of input versus outputs levied on value adding services and/or products,” continues Hauptfleisch. “Fortunately, CCS solu- tions are developed in South Africa, where VAT has been in effect for al- most 20 years; and the financial trans- acting components of our solutions have been designed and developed in compliance with VAT applications and practices. We’re well placed in terms of expertise and system flexibility to cater for, and ultimately advise on, Ian Hauptfleisch, general manager, CCS Gulf on how it can help firms implement better cost control and prepare for VAT and other changing market conditions in the GCC Ian Hauptfleisch
construction business news me // July 2017 // 33 the introduction of GCC-specific VAT for the construction sector.” The final details of how the implementation of VAT will affect the construction sector is not yet fully known, however Users of CCS’ solu- tions, Candy and BuildSmart, can be assured that the transition will be as seamless as feasibly possible. He tells CBNME that CCS Gulf has enlisted the services of a GCC-based VAT expert to ensure all GCC VAT criteria and workings are understood and ca- tered for, “by CCS Gulf as a business, our solutions and for the business operations of our Client base.” Candy is used by contractors to manage the estimation, management and planning of all construction projects, from estimating through to tender award and ultimately, final account. It also integrates estimate forecasts and cash flows to track and monitor progress and performance of the contract for the contractor. Like- wise, BuidSmart comprises integrated procurement, accounting and payroll modules and a host of added features including plant, yard and store man- agement, subcontract management, document control, business intelli- gence, HR and time and attendance. Serving a region-spanning list of Clients, Hauptfleisch offers a broad and crucially current understanding of construction conditions in the re- gion. Projects in the Middle East that have benefited from CCS and CCS Gulf’s expertise include: The Burj Al Arab; Atlantis The Palm; Yas Water Park; Bahrain World Trade Centre, Riyadh’s Kingdom Tower; Dubai, Abu Dhabi, Doha, Muscat and King Abdulaziz International Airports; and Dubai, Doha and Riyadh metro rail projects. He urges it is impera- tive that companies get a firmer grip of their finances, whatever the market situation. “With the relatively flat market conditions exasperated by lower oil prices and projects being pulled and/ or not coming on line, competition is rife: margins are lowered, durations shortened and resources over-extend- ed, so accuracy in budget, quanti- fication, forecasting, cash flow and cost control on an ongoing basis is non-negotiable and exactly what CCS solutions, Candy and BuildSmart, are designed for,” he says. “Irrespective of market conditions, cost control is an imperative for any contractor. Profits or losses on projects is essentially what determines their bottom line and real time cost control at all stages of a construction project is crucial. CCS solutions are designed and developed from the bottom up to provide contractors with the tools, features and functionality to provide cost control from estimate to final account.” CCS Gulf is looking to leverage on the healthy market share it enjoys in the GCC. Hauptfleisch says that regional expansion into Egypt and the LEVANT countries, such as Lebanon and Turkey, is progressing well. “Currently, this is as a result of or- ganic growth – word of mouth, mar- keting and sales initiatives, joint-ven- tures, etc. but we hope to expedite this expansion through strategically aligned localised business develop- ment partnerships, which we’re ac- tively pursuing and exploring as part of our global growth initiative.” The Burj Al Arab, Dubai Dubai International Airport
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construction business news me // July 2017 // 35 // Power 60
// construction business news me // July 2017 36 // Power 60 1 Emaar Properties Mohamed Alabbar, chairperson E maar Properties topped off another busy 12 months with the big news that it will seek a stock listing for up to 30 percent of its UAE real estate development business. The IPO will allow investors who value the proven track record of one of the UAE’s biggest and most prestigious developers to invest directly in the com- pany and benefit from the strong growth outlook of its UAE business. The Mohamed Alabbar-led company re- corded net profit of AED 5.233bn ($1.425bn) for the full year 2016, a huge 28 percent higher than the previous 12-month period. Projects: • Dubai Creek Harbour • Dubai South • Dubai Hills Estate • Downtown Dubai • Dubai Marina Revenue for 2016 rose by 14 percent year-on-year to AED 15.540bn. Net profit for the first quarter of 2017 also saw a big rise of 15 percent to AED 1.384bn ($377mn) compared to the first leg of 2016. Emaar has a number of major develop- ments ongoing in Dubai, most notably The Tower at Dubai Creek Harbour, which will overtake its own Burj Khalifa as the tallest building in the world. Emaar accomplished a key milestone recently with the comple- tion of the pile foundations for what is certain to become a new global icon. Significant progress has also been made on Dubai Hills Estate, developed as a joint venture with Meraas Holding, as well as new residential launches in Downtown Dubai, Dubai Marina, Dubai Creek Harbour and Emaar South. The company hospitality division is also thriving thanks to a number of new launches in the past year in the UAE, Turkey, Egypt, Saudi Arabia and Bahrain. Perhaps the most high profile launch was the spectacular 290 metre Ad- dress hotel and residences at Jumeirah Beach Residence (JBR) with a shimmer- ing façade and a distinctive ‘hole’ in the middle. Emaar Hospitality has a pipeline of 27 upcoming projects to add to the 10 operational hotels and three serviced residences already in service.
construction business news me // July 2017 // 37 3 2 wasl Asset Management HE Hesham Al Qassim, CEO Alec Kez Taylor, CEO O ne of the top property developers in Dubai, wasl is probably best known for being the company behind some of the most pres- tigious hotels in the emirate. That trend continued this year with the announcement of a number of major projects that should keep Dubai near the top of the list of lead- ing hotel destinations in the world. Chief among those was arguably the news that wasl is bringing the first MGM hotel to the Middle East. The famous Las Vegas-based hotel group will bring its iconic brands - including a Bellagio hotel – to a new beach front mega resort to be built on an artificial peninsula off Jumeirah not far from the Burj Al Arab. Wasl also revealed this year plans to bring a second luxury Mandarin Oriental hotel to Dubai by the end of 2020. The hotel will be the main feature of a 300 metre tower being built on Sheikh Zayed by Dubai-based Arabtec, which was awarded a AED 1.46bn ($397mn) construction contract earlier this year. wasl’s first Mandarin Oriental hotel is be- ing built on the waterfront at Jumeirah Beach and will open in the fourth quarter of 2018. And finally wasl also said this year that it would build the Hyatt Centric on Palm Jumeirah, a hotel with 217 rooms and 116 serviced apartments. Subsidiary wasl Properties manages an extensive real estate portfolio of over 35,000 residential and commercial proper- ties in Dubai. A LEC is one of the largest construction companies in the Middle East employing around 12,000 people, the bulk of whom are based in the UAE. The scope of projects undertaken by the company includes resort hotels, themed developments, high rise towers, airports and large scale shopping centers. Over the past year the company has completed or is working on UAE projects including Bvlgari Resort & Residences Dubai, Phase 2 of Dubai Festival City, Al Maktoum International Airport's Passenger Terminal Building (PTB) expansion and Select Group's three-tower Marina Gate development. ALEC also overseas a number of subsidiary units which include MEP (ALEMCO), fit out (ALEC FITOUT) and energy (ALEC ENERGY). The group had revenue in its most recent financial year of $1.06bn (AED 3.9bn), and projected income of $1.09bn (AED 4bn) for 2017/18. “The construction sector at the moment is very positive and there are plenty of opportunities in the next 5+ years,” Kez Taylor, CEO of ALEC told CBN earlier this year. “We will be focusing on operational efficiency in 2017 and ensuring that we create an environment on projects where all our stakeholders and subcontractors are able to succeed. Having effective relationships, alignment and trust in the sup- ply chain is our key priority. “There will be more emphasis on design and build projects as well as diversifying the core business. Renewable energy has become a priority and businesses need to respond and adapt to the changing requirements which have been set to make the UAE a smart city. ALEC’s continuing growth is to offer complementary services which add value to our core business as a contractor.” Projects: • Port Views • Mandarin Orientel hotels, Dubai • MGM Hotels, Dubai • Hyatt Centric, Palm Jumeirah Projects: • Bvlgari Resort & Residences Dubai • Dubai Festival City phase 2 • Al Maktoum International Airport expansion • Marina Gate • Bluewaters Island (retail component)
// construction business news me // July 2017 38 4 // Power 60 Egyptian Steel Group Ahmed Abou Hashima, Chairman and CEO W hen you are able to call on the services of one of the world’s biggest sport stars in Cristiano Ronaldo to rally a generation of young Egyptians then you know that your company has arrived on the global stage. Archetypal business man and entre- preneur, CEO Ahmed Abou Hashima is determined to continue Egyptian Steel’s development into a world-class steel producer and is driving the group towards an annual production capacity of 2.3 million tons of rebar, wire rods and billets by 2018 – once its new Al Sokhna plant comes fully online. His company will soon reach a 20 percent share in the steel- hungry Egyptian market making it one of the leading makers of reinforced steel in the region. Abou Hashima describes Egyptian Steel as representing Egypt’s 90 million- strong population as his company pushes forwards. As such the company has developed one of the region’s outstanding CSR programmes, donat- ing steel and funding the development of poor areas of the country. Abou Hashima signed of a deal with char- ity Orman which will see the company invest $6.5mn to help the construction of 40 villages in the country. Rather than competing with the huge volumes of giant steel-makers like Tata Steel, his company is wisely focused on making high quality steel rebars using environmentally-friendly technology and sustainable production.
construction business news me // July 2017 // 39 T he past 12 months have played out like one long highlight reel for Nakheel. In August last year the developer of Palm Jumeirah de- clared itself debt-free, completing a five year financial restructuring undertaken following the financial crash. That was followed by the announcement of the highest an- nual net profit in the company’s history thanks to the expansion of all three of its major divisions in retail, hospitality and residential leasing businesses. Earnings of AED 4.96bn ($1.35bn) in 2016 were 13 percent higher than the previous year. Over the past year Nakheel has announced billions of dollars worth of new projects and handed out construction contracts worth hundreds of millions more. In fact Nakheel anticipates awarding AED 10bn in construction contracts in 2017 alone, more than three times the AED 3bn booked in 2016. Among the biggest recent awards is a AED 1.5bn ($408mn) deal with Shapoorji Pallonji to build The Palm Gateway, a three-tower residential, retail and beach club complex at the foot of the world-famous Palm Jumeirah. The project is one of three high rise developments by Nakheel on the man-made island. The Palm Tower, a 52-sto- rey luxury hotel and residential complex is currently under con- struction, while PALM 360, a 220 metre twin-tower penthouse, apartment and hotel complex, is currently being designed. Another twin tower residential project is earmarked to be built next to Ibn Battuta Mall. Nakheel’s retail and hospitality divisions are also experiencing a boom. In April the company awarded United Engineering Construction a AED 4.2bn ($1.14bn) construction contract to build the biggest mall in Dubai, Deira Mall. The AED 6.1bn project will be the centrepiece of Deira Boulevard, a AED 5bn community with 16 residential towers. Both of these are major components of the Deira Islands master development, which will transform the area tradition- ally known as ‘Old Dubai’ into a retail, tourism, living and leisure hub and be home to more than 250,000 people when complete. On the hospitality front Nakheel now has two hotels operational with 16 more in the pipeline. Total investment of around AED 5bn in the sector will bring over 5,800 rooms and serviced apartments to Dubai in line with the government’s 2021 vision. It’s fair to say the devel- oper has had a good year. A rabian Construction Company (ACC) is best known for building some of the tallest buildings in the Middle East. Its roster of completed projects includes well known landmarks such as Princess Tower and Almas Tower in Dubai and Etihad Towers and Gate Towers in Abu Dhabi. Lebanon-based ACC is building on that track record with a couple of high rise projects in Downtown Dubai for Emaar. The contractor is currently entering the final stages of build- ing the Address Sky View, a project designed by Burj Khalifa architect Skidmore, Owings & Merrill that includes a sky bridge joining a pair of towers 250 metres above ground level. The bridge was built separately and hoisted recently into place during a complex operation. On the other side of Downtown Dubai is Fountain Views, consisting of three high-rise towers: two 59 storey towers separated by a 65 storey (329 metre) hotel. The project will be linked directly to Dubai Mall via a bridge. Contracts secured in the past year include a GBP 150mm ($188.3mn) deal in joint venture with UK-based Kier to build an apartment complex in Dubai for developer Nshama as part of the Town Square residential project. It also bagged the deal to build a new headquarters for Mashreq Bank in Dubai. Projects: • Address Sky View • Fountain Views • Princess Tower • Almas Tower • Etihad Towers Arabian Construction Company (ACC) Ghassan Merehbi, Chairman 5 6 Nakheel Ali Rashid Lootah, chairperson Projects: • Palm Gateway • Deira Islands • The Pointe • Ibn Battuta Mall • Dragon City
// construction business news me // July 2017 40 // Power 60 7 Asgc Bishoy Azmy, CEO A SGC has grown to become one of the UAE’s biggest construction contractors for large-scale private and social infrastructure projects. Since 1989, the company has built a reputation for excellence and quality, delivering commer- cial complexes, high-rise buildings, hotels and resorts, industrial projects, and land- mark social infrastructure developments. While other notable contractors have fallen by the wayside over the past decade, ASGC has gone from strength to strength. Major projects delivered in Dubai in recent years include City Walk, Etihad Museum, Vision Tower, JBR, The Onyx, Bay Square, Business Central Towers, Golden Mile, Nestle Factory, Waldorf Astoria. Recent big contract wins include Dubai Arena, HH Sheikh Mohamed Bin Rashid Library, Harbour Views Towers, Dubai Airport Refurbishment. With annual turnover in excess of AED 3.5bn ($952mn) the Bishoy Azmy-led contractor employs more than 14,000 construction specialists and workers in the UAE, including its five subsidiaries - Al Shafar Steel Engineering (ASSENT), Emirates Beton (EB), Al Shafar United for Electro-Mechanical Engineering (ASU), Hard Pre-Cast Building Systems (HPBS) and Al Shafar Interiors (ASI). Projects: • City Walk • Etihad Museum • Waldorf Astoria • Dubai Arena • HH Sheikh Mohamed Bin Rashid Library
construction business news me // July 2017 // 41 Projects: • Bayz • Starz • Dreamz • Miraclz • Resortz 8 Danube Group Rizwan Sajan, chairperson and founder D anube has become a household name in the past couple of years after the company, previously better known in the construction industry as a major supplier of building materials, turned its hand to property development. If you live in Dubai you can’t have failed to notice advertisements for Danube’s ‘affordable luxury’ apartments plastered everywhere from billboards to the side of taxi cabs. Rizwan Sajan-owned Danube’s short journey as a developer has taken it from villas in the burgeoning neighbourhood of Al Furjan via low rise apartment build- ings in Studio City to its first high rise tower in Arjaan next to Miracle Garden. Since its inception in 2014 the firm has launched nine projects, each of which has promptly sold out, proving the strong demand for affordable housing in Dubai. The latest offering is the AED 450mn Bayz, a 29-story tower which Danube says will offer the lowest prices in the Business Bay. All Danube’s projects are currently under construction, with the handover of the first project - Dreamz scheduled to commence soon. At present, Danube Properties has a book value of AED 3bn and Sajan says he plans to launch a new project every two to three months, provid- ing the previous one has sold out. Danube continues to grow its building materials business opening a number of new branches throughout the region. Other highlights of the past 12 months include the launch of a new AED 100mn ($27.2mn) factory to meet growing demand for fire rated building cladding panels in the region.
// construction business news me // July 2017 42 9 Al Bawani Fakher al Shawaf, CEO U nder the stewardship of its general executive director Fakhr Al Shawaf, Al Bawani has expertly steered its way through the turbulence of the Saudi Arabia and Gulf markets over the past year. He believes that the 100% Saudi-owned construction outfit is one of the strongest in the region. Al Shawaf celebrates his 20th anni- versary at the company in 2017 and the firm continues to make an invaluable contribution to turnkey projects across the Kingdom and the wider region. Al Bawani is certified in Quality Man- agement Systems for design, engineering works and construction management of housing complexed, industrial and com- mercial buildings, hospitals, educational institutions, governmental, diplomat missions and defence facilities. It is also a prolific employer (it was reportedly recruit- ing 300 new employees at the turn of the year) and investor in training, following a philosophy that Al Shawaf has stated ensure, “personal attention to our clients.” Since featuring in the 2016 Power Hour list, Al Bawani has completed its nine-month stint, including structural and enabling works, on the 14-storey CMC Tower for Cayan Tower in the Saudi capital ahead of schedule. Al Bawani has also been highly active in the public sector in 2017 working with the ministry of foreign affairs on the distinc- tive Institute of Diplomatic Studies and continuing a SAR 1bn school construction programme with AECOM and Saud Con- sult. It’s other major projects have included ArabSAT’s headquarters and the turnkey construction of the 23-storey King Abdul- lah Center for Cancer and Liver Disease. Al Shawaf recently told the media that the disruption in the Saudi construction sector had opened up opportunities for companies with “the resources to deliver” and the company has continued to score project wins including the KAUST Hous- ing Expansion Project in Jeddah and the development of park and ride sites for the Riyadh Metro. Projects: • KAUST Housing Expansion Project • Riyadh Metro • King Abdullah Center for Cancer and Liver Disease • ArabSAT HQ • Institute of Diplomatic Studies // Power 60
construction business news me // July 2017 // 43 10 Doka Peter Vogel, Director Region middle east & Africa A s Doka’s Dubai-based Middle East and Africa office gears up for another record-break- ing year, it is worth getting up to speed with some of its latest projects and the mechanisms that have contributed towards the company’s overall regional strength. With more than thirty years’ experi- ence operating in the Middle East from its regional HQ in Dubai, you could say that Doka’s expansion has mimicked that of its surroundings. Having been involved since the very beginning of what many would consider the ‘boom’ period of the UAE development, Doka’s existing reputation helped to secure contracts on some of the country’s most iconic build- ings, most notably the Burj Al Arab and the Burj Khalifa, in the process becoming a staple provider for many of the wider GCC’s most ambitious infrastructure and high-rise projects. In more recent years, Doka’s Direc- tor Region Middle East & Africa, Peter Vogel believes there have been several factors, which have helped the com- pany to expand. “While we have made a concerted effort to expand our sales force in the past decade, I believe the decision from our head office in Amstetten to allow our Dubai operations to increase its territorial responsibility has been a major part of our success story,” says Vogel. “Thanks to the hard work, diligence and results of our team, Dubai has carved out its position as a regional leader, making us the logi- cal choice to oversee Doka’s expansion into other markets, particularly west and central Asia, and more recently the whole of the African continent. “Through a combination of outstanding engineering and logistical competence, Dubai has been able to provide the necessary support to our satellite opera- tions across the wider MEA and WCA regions. From a logistics perspective, the establishment of our Material Distribu- tion Centre here in Jebel Ali has further provided us with a wealth of advantages, in particular reducing lead times while offering an unbeatable level of material availability on site.” Perhaps another aspect of Doka’s success has been its ability to overcome obstacles no matter the project or deadline. Take for example the Istanbul Marina project, whose ideal solution for its five geometrically different buildings was found after a 4,100-hour study, or the application of its CNC machine at the Lusail project in Qatar, which enabled a decrease in production time, while assuring accuracy for the pre- assembly that helped the overall project meet its deadline. Built on the strong foundation of its Dubai operations, Doka’s Middle East and Africa office is certainly well positioned, supplied and managed to play an increas- ingly important role in supporting not just the GCC’s development, but the burgeon- ing markets of central Asia and continen- tal Africa as well. Projects: • Sheikh Zayed Grand Mosque Center, Abu Dhabi • The Hills, Dubai • Istanbul Marina, Turkey • La Luna Hotel, Azerbaijan • New Al Sabah Hospital, Kuwait
// construction business news me // July 2017 44 12 11 CCC Samer Said Khoury, President E&C WS Atkins Simon Moon, CEO, Middle East & Africa C CC (Consolidated Contractors Company) continues to be an outstanding contributor to the construction sector in the region and has rattled off a diverse selection of projects in the past 12 months, including: the Batinah Express- way (package 6) in Oman, the Wasit Gas Development Project in Saudi Arabia, New Export Transit Pipelines in Kuwait and Burj Vista in Downtown Dubai. According to Tawfiq Khoury, execu- tive vice president of one of the region’s largest engineering and construction companies, CCC remains well-placed to continue a success story that stretches back to 1952 when it became one of the first Arab construction companies. “With CCC’s existing strong governance and management I am confident that CCC will continue to rise to the challenge. 2016, even with tough market conditions, ended up as another good year where CCC main- tained the leadership role. CCC’s effective teamwork will continuously enhance our services and maintain our established posi- tion, and succeed in securing solid results,” said Khoury. Much of CCC’s resilience stems from its diversification into several sectors. The group now includes a raft of subsidiaries that span general construction, infrastruc- ture and oil & gas, including CCC Underwa- ter, CCC Oil and Gas, ACWA Services Ltd, Morganti Group Inc, Sicon Oil and Gas and its share of Abu Dhabi’s National Petroleum Construction Company (NPCC). Its strength in the oil & gas sector is typified by its list of current projects which includes working on the RHIB (Rabab Harweel Integrated Project) in South Oman, the Clean Fuels Project at Kuwait’s Mina Abdullah refinery and the $1.4 billion Jazan Refinery and Terminal Project in Saudi Arabia. The company is also highly active in the residential and commercial property sector is a main contractor on the Emirates Hills development. T he UK multinational juggernaut that has provided its engi- neering, design, project management and consultancy ser- vices to some of the region’s biggest projects, including the iconic Burj Al Arab, saw its revenues fall 6.5 percent in the region in FY2016-17 to $296.89mn but that doesn’t tell the full story. According to the company, it took a hit against a year where it had benefited from a number of major projects reaching final delivery. The past 12 months has seen the consultancy oversee the successful opening of Dubai Opera house in Downtown Dubai. It also secured the con- tract for the first phase of Duqm City, Oman where it will supply the detailed master planning, market and feasibility study, and the design and prepara- tion of tender documents. It also opened up its first Azerbaijan branch at the end of 2016 to serve the energy and transportation sectors in the country and central Asia. Early in 2017, Atkins Power & Renewables won the contract to provide technical advisory services for the development of the Power 2021 Procure- ment Cycle in Oman, a project that will add 800MW of combined cycle gas turbine generation to the current installed capacity of around 6,000MW. More recently, WS Atkins agreed to purchase and merge with SNC- Lavalin Group, one of the leading engineering and construction groups in the world and a major infrastructure player for $3.6bn. SNC-Lavalin is a force in the Middle East in its own right, with 300 projects worth $12bn in power, infrastructure and oil and gas completed over the last decade. Projects: • Riyadh Metro • Abu Dhabi Midfield Terminal • RHIB in Oman • Jazan Refinery and Terminal Project, KSA • Clean Fuels Project at Kuwait’s Mina Abdullah refinery Projects: • Dubai Opera • Burj Al Arab • Riyadh Metro • Doha Metro // Power 60
13 Meraas Abdulla Al Habbai, Group Chairman “ Meraas doesn’t see itself as a tra- ditional developer. We’re here to deliver a legacy for this city,” said Michelle Seywood, Vice President of Design at Meraas, back in April. That assessment got to the heart of what this extraordinary developer is trying to be. Projects successfully concluded to date - The Beach at JBR, Citywalk, Box- park, Last Exit and Dubai Parks and Re- sorts – have each introduced completely new concepts to a city previously better known for shopping malls and skyscrap- ers. The government-controlled company is quite literally on a mission to change the face of Dubai. The biggest project Meraas is working on right now is undoubtedly Dubai’s Bluewa- ters Island. This mega development on an artificial island off JBR includes hospitality, residential and retail topped off with the world’s tallest observation wheel. Some of the biggest names in the construction busi- ness are hard at work to bring the project to fruition in early 2018. Another major project is The Bulgari Resort & Residences Dubai, a first-of-its- kind master development in scale and magnitude, situated on another man- made island 300 metres off the coast of Jumeirah. Spreading over 1.7 million square feet, the luxury marine complex is only the sixth Bulgari Hotels & Resorts property in the world. A penthouse apartment in the exclusive project recently sold for a record AED 60mn ($16.3mn). Future projects include ‘Dubai Arena’, a new state-of-the-art multi-purpose arena with a capacity of 20,000 to host large scale concerts and sporting events. Projects: • Citywalk • The Beach • Bluewaters Island • Dubai Parks and Resorts • Bulgari Resort & Residences Dubai construction business news me // July 2017 // 45
// construction business news me // July 2017 46 // Power 60 Hill International Mohammed Al Rais, Regional President H ill International has long been a big player on the Middle East construction scene, working on a number of major projects. Its most notable activity this year was probably to renew a contract for work on the Doha Metro system. Philadelphia-based Hill leads a consortium providing project management services for the Green Line of the transport system which is still under construction and due to finish in 2019. The company won a string of smaller contracts in the region this year, including a deal with Abu Dhabi Future Energy Company (Masdar) to provide project management services during construction of the Masdar Institute Neighborhood in Abu Dhabi. The three-year deal has an estimated value of approximately AED 12.2mn ($3.3mn). However the firm’s most notable activity this year was to sell its claims division to Bridgepoint Development Capital for $147mn, a move that left it as a pure play project management firm. Following the divestment its longstanding CEO David Richter stepped down. Other major projects Hill has been involved in in this part of the world include the ongoing Riyadh Metro, Etihad Towers in Abu Dhabi and Abu Dhabi International Airport. Hill employs 4,300 profes- sionals in 100 offices worldwide. Projects: • Doha Metro • Masdar, Abu Dhabi • Etihad Towers, Abu Dhabi • Riyadh Metro • Abu Dhabi International Airport 14
construction business news me // July 2017 // 47 Thumbay Group Thumbay Moideen, founder and president T humbay Group is a diversified international business con- glomerate with its headquarters in DIFC - Dubai. Over the past two decades, the company has spread its wings into various fields of social and business endeavours. What started in 1998 with the establishment of the Thumbay Group by its founder, a third generation entrepreneur from India, Mr. Thumbay Moideen (pictured in the white shirt), has grown into a diversified business group with operations across 20 sectors. One of those is Thumbay Builders, which has become a leading real estate company in the Northern Emirates of the UAE. Its portfolio of services cover four core areas of real estate development – design, construction, project manage- ment and asset management – which it intends to expand to include property brokerage, leasing and facilities manage- ment. The company is also aiming to grow its business in the next five years. Among its major newest projects is the Thumbay Hospital, a 300-plus-bed teaching hospital, over an area of 356,000 sq ft, a dental hospital covering an area of 37,000 sq ft and a rehabilitation centre spread across 27,000 sq ft, all within the existing campus of Gulf Medical University, where the group’s flagship hospital and university is located. The company is also working on a number of projects including a housing scheme for students and staff at the GMU premises. It includes a hotel, separate hostels for boys and girls and staff accommodation over an area of 760,000 sq ft. 15
// construction business news me // July 2017 48 // Power 60 16 17 F aithful+Gould started as a four-man quan- tity surveying busi- ness in the UK and in the Middle East it has been appointed on some of the region’s largest, most prestigious projects as project and programme managers. The company has logged a series of key projects in its portfolio in recent years including the King Abdulaziz International Airport in Saudi Arabia, the Doha Oasis in Qa- tar and Dubai Creek Harbour in Dubai. As part of a four-year contract, it is acting as project management consultant for Miral’s Yas Bay. The four-year long consultancy services agreement includes the design, construction, logistics and health and safety man- agement related to the pre- and post-contract phases of the development of the multi- purpose venue of Yas Arena, a 650-key hotel, as well as din- ing, retail and entertainment facilities. It is also currently working on The Royal Atlantis Resort & Residences. With 791 keys and 231 residences, upon completion it’s set to become the largest development on Dubai’s Palm. To celebrate its 70th an- niversary, it launched its 70 days of giving campaign at the end of March where em- ployees organised a number of initiatives across 70 days, designed to give back to the communities it works in and fundraise for a number of global and local charities. A ECOM has been bringing its global expertise and experience of large-scale projects for over 50 years to the Middle East. Today it offers a full range of consultancy and design, build, finance, operate (DBFO) services. The company played a direct role in the development of a number of iconic structures that have shaped the landscape and infrastructure of the UAE since beginning its operations in the country in 1965. Starting with Maqta Bridge and Al Bateen Airport it has continued to provide quality consulting on some of the country’s largest developments. Projects as diverse as the Taweelah Aluminium Extrusion Plant (TALEX), Etihad Rail, Etihad Towers, ADIA’s Midfield Terminal Complex and the Al Raha Beach hotel have all benefited from its expertise. It has also made a weighty contribution to the infrastructure development of Saudi Arabia (where it worked to alleviate cost pressures for its cli- ents when the latest downturn struck) including its ongoing development of the 168sq km King Abdullah Port in KAEC. AECOM teamed up with SYSTRA this year to win Dubai’s Roads and Transport Authority (RTA) contracts for phases 2 and 3 of the Dubai Tram which will sees them take charge of transport planning, preliminary design and invitations to tender for the second and third phases, a process which is expected to be completed in the H1 2018. Projects: • The Royal Atlantis Resort & Residences • Miral’s Yas Bay • Four Seasons Abu Dhabi • King Abdulaziz International Airport • Dubai Creek Harbour Projects: • Dubai Tram • Saadiyat Island, Abu Dhabi • Etihad Railway Stage 1 • Midfield Terminal Complex • Etihad Towers Faithful+Gould Campbell Gray, Middle East managing director Aecom David Barwell, chief executive, Middle East and India
construction business news me // July 2017 // 49 19 18 WSP Greg kane, managing director, Middle East Arabtec Hamish Tyrwhitt, CEO, Arabtec Group I t may have lost the Parsons Brincker- hoff (the former professional services division of Balfour Beatty) part of its name but WSP remains one of the foremost engineering and design consultancies in the world. While the Middle East market has faced a challenging 12 months, WSP has a relatively low exposure to the turbulent Saudi Arabian market. While it awaits op- portunities in the Kingdom relating to the Vision 2030 programme, it has maintained a high level of activity in the UAE, securing contracts and is confident that its property and buildings business can continue to be a success. The company is now being led by re- gional managing director Greg Kane who helped to restructure the firm’s operating model during the integration of Parsons Brinckerhoff before the departure of pre- decessor Tom Bower. In addition to its portfolio which includes the Royal Atlantis on the Palm, the Mall of Emirates expansion and the Jeddah Cor- niche in Saudi Arabia, it has also emerged as a major contributor to building safety in the region, working alongside the civil de- fence authority in the UAE on the new fire safety code. It also contributed to develop- ing accessibility within the built environ- ment with the government of Dubai. A rabtec clinched a AED 1.46bn ($400mn) contract in May to build a 300 metre tower for wasl Asset Management. The win took the contractor’s project pipeline to over 22 projects under construction in the UAE and a project backlog of approximately AED 17bn, it said at the time. Not bad for a company still in the midst of a financial restructuring. The overhaul has involved bringing in new senior management to orchestrate a turnaround in fortunes. The reorganisation combined with an upturn in the market has improved Arabtec’s prospects, says Hamish Tyrwhitt, ap- pointed as CEO of Arabtec Holding in November 2016. Tyrwhitt subsequently brought in Boyd Merrett as CEO of Arabtec Construction, recruiting him from CIMIC Group where he was general manager for Leighton Asia in Hong Kong. The appointment followed that of Peter Pollard as the Group Chief Financial Officer in April. In the midst of all that Arabtec Holding returned to profit for the first time in more than three years, booking net earnings of AED 18mn ($4.9mn) compared to a net loss of AED 46mn in 1Q16. “With the combination of the strategic repositioning of the business, strong industry fundamentals and catalyst events such as Expo 2020 fast-approaching, we believe that the year ahead will see Arabtec continue on its path to a suc- cessful and sustainable future,” said Tyrwhitt at the time. The signs are that one of the biggest names in construction in this part of the world may have finally turned a corner. Projects: • Jeddah Corniche • One JBR • Royal Atlantis • Mall of Emirates • United Tower Projects: • Bahrain International Airport • Tiara Towers, Dubai • Louvre Museum, Abu Dhabi • Midfield Terminal Building, Abu Dhabi • The Address, Downtown Dubai
// construction business news me // July 2017 50 // Power 60 21 20 T he origins of TAV Group subsidiary, TAV Construction, reach back 20 years ago when it was formed as joint-venture to help two leading Turkish con- glomerates, Tepe Group and Akfen Holding to successfully bid on the Build-Operate-Trans- fer (BOT) contract for the then new Istanbul Ataturk Airport. At its head is Dr Engineer Mustafa Sani Sener who has led the company over the two pro- ceeding decades, drawing from his past experience managing many national and international projects. Under his guidance, the company (officially branded TAV Construction in 2003) has branched out into airport construction, financing, opera- tions and related consulting and management services in the global arena. TAV Construction is today recognised as a major airport contractor, earning the number 1 global ranking in airport con- struction by Engineering News Record (ENR) in 2014, 2015 and 2016. While the building of airports and related facilities remain TAV Construction's main area of expertise, it has applied its know-how to non-aviation projects as well and expanded its portfolio and has a project portfolio that is estimated to be in excess of $19 billion. The GCC is a huge area of focus for the company with the UAE, Saudi Arabia and Bahrain, where its JV with Arabtec won the $1.1bn new terminal contract for Bahrain International Airport, being identified as strong markets for growth. Projects it has been a major contributor to include the Abu Dhabi Airport Midfield Terminal Complex in the UAE, design and build for Ri- yadh’s King Khaled Airport Ter- minal 5, Jeddah’s King Abdulaziz Airport Aircraft Maintenance Hangars and Muscat Airport Infrastructure Works in Oman. T he Middle East outlier of the world’s second largest construction company, China State Construction Engineering Corporation (CSCEC) is a formidable player in the region. Few other construction firms can rival the diversity of a port- folio that stretches from large-scale infrastructure develop- ments like Abu Dhabi International Airport’s Midfield Terminal Building (MTB) to the main works package for the 27-storey luxury apartments of DAMAC’s Paramount Tower Hotel & Residences. It also scored a major success with its expedi- tious and virtuoso contribution to the Dubai Water Canal. The Chinese contractor has forged a particularly strong re- lationship with Dubai’s Roads and Transport Authority (RTA) and scored its eighth contract with the organisation early this year. In one of the RTA’s highest value infrastructure awards in recent years, CSCEC will construct 6.4 km of roadways as well as intersections as part of the $216mn contract. CSCEC has been a pioneer in closer ties between the Middle East and China and CSCEC’s president Wang Xiang- ming visited the region in May this year to reflect on a decade of achievement for the company. Complementing CSCEC ME’s CEO Yu Tao’s own strategy for further expansion, Xiangming said he hoped the Dubai- based concern would cooperate closely with other CSCEC-re- lated subsidiaries “to grab the ‘One Belt & One Road’ (China’s expansive trade and investment initiative) opportunity and strive to expand its overseas business in the Middle East.” Projects: • BIA new terminal • ADIA Midfield Terminal Complex • King Khaled Airport Terminal 5 • King Abdulaziz Airport Aircraft Maintenance Hangars • Marina 101 tower, Dubai Projects: • Dubai Water Canal bridges • Al Hikma Tower • Viceroy Palm Jumeirah Dubai • Paramount Tower Hotel & Residences • ADIB’s Midfield Terminal Building TAV DR Eng Sani Sener, president China State Construction Engineering Corporation Yu Tao, president and CEO
construction business news me // July 2017 // 51 22 KBW Investments HRH Prince Khaled bin Alwaleed bin Talal, Founder and Chairman K BW Investments (KBW), founded by Chairman HRH Prince Khaled bin Alwaleed bin Talal and directly managed by Group Chief Executive Officer Ahmed Alkhoshaibi (pictured left), has made significant steps forward over the past 12 months. The biggest market impact made by the Group was the launch of the UAE’s newest developer ARADA, a partnership enter- prise formed with Basma Group. Shortly after launching, ARADA Chairman HE Sheikh Sultan bin Ahmed Al Qasimi announced the company’s first development, Nasma Residences, at a project value of AED 1.5bn ($408mn). ARADA’s managerial team has also indicated that several large-scale projects are slotted to follow both in the UAE, and further afield. Currently, the ARA- DA portfolio also includes a five-star $100mn hotel development in Sharjah. Globally, the KBW Group of companies is engaged for a multitude concurrent projects. Most notably, at the time of writing TTM Post Tensioning in Australia boasted 30 ongoing projects, while Arcadia Engineering commenced work as the General Designer of Romania’s Olympic class rink and mixed-use athletic facility, making this the second Olympic-class structure that the company has played an integral part in. MEP specialty subcontractor KBEC, the Group’s second youngest portfolio member, was recently awarded a large-scale contract for one of the UAE’s premier developers. In terms of fit-out specialty subcontracting, Grayscale Interiors re- cently completed design and procurement across Furniture, Fixtures and Equipment (FF&E) and Operating Supplies and Equipment (OS&E) for 21 apartments for Dubai Properties. The KBW operational schema of cross-pol- lination has played a strong role in the Group’s advancement over the past year, increasing inter-portfolio commercial activity. Heritage heavy lifting machinery manufacturer Raimondi Cranes saw the positioning of its tower crane on a Klampfer Middle East jobsite; one of many strategic cooperative efforts arranged between portfolio companies in a bid to strengthen the company’s footprint and the respective bottom lines of portfolio members. The cross-pollination strategy has also benefitted the Group’s mem- bers by significantly reducing turnaround times and allowed for increased agility in procurement, project operations and delivery.
// construction business news me // July 2017 52 // Power 60 DAMAC Properties Hussein Sajwani, chairperson Drake & Scull International Wael Allen, CEO C urrently worth some $4.7bn ac- cording to Forbes, DAMAC Proper- ties has been forging ahead with multiple projects in the past year, handing out construction con- tracts worth hundreds of millions of dollars. Main contracts awarded earlier this year include those for services related to five projects in Dubai: the golf community AKOYA Oxygen, DAMAC Hills, AYKON City on Sheikh Zayed Road, and the Avanti and Merano Towers in Business Bay. Among the most high profile developments DAMAC has under construction is the Para- mount Hotels and Resorts in Dubai, which is being built by Chinese contractor CSCEC and is around 90 percent complete. The 64-storey project consists of an 867-key luxury hotel and hotel residences tower on Sheikh Zayed Road and is scheduled for completion in early 2020. Another eye-catching project consisting of four towers is AYKON CITY overlooking the recently completed Dubai Water Canal. Contracts for AYKON City awarded earlier this year include specialist design services and piling works packages. DAMAC also recently unveiled plans to build a 5-tower hotel in the middle of the Trump World Golf Club, which is set within the AKOYA Oxygen residential development. D rake & Scull International (DSI) is one of the region’s leading inte- grated design, engineering and construction experts in Mechanical, Electrical and Plumbing (MEP), water and power, rail, and oil and gas, and water and wastewater treatment. The new man at the top is Wael Allan. Allan made his mark in the region at Aracadis and Hyder Consulting and is providing an assured hand in the wake of the departure of former vice president Khaldoun Tabari, who sold his remaining stake in the business in June 2017. One of the Allan’s main tasks after he was appointed as CEO was to stabi- lise the business through a turnaround and restructuring plan with a focus on prioritising ongoing projects. He will have to draw on his vast experience of over a quarter of a century inside the construction sector to enable the listed company to improve on a disappointing decline in profits. However the company entered 2017 with an order backlog of $2.2bn and much of the $135mn raised by the selling of the shares to Tabarak Investment is ex- pected to be pumped back into the business. Speaking to The National newspa- per, Allan said the money would be used to speed-up the completion of ongoing projects, recommence stalled projects and secure new business. Some of its non-core assets are also expected to be released and sold to further raise capital. Projects: Projects: • Paramount Hotels and Resorts • AYKON City • AKOYA Oxygen • DAMAC Hills • Merano Tower • Doha Metro • Louvre Museum Abu Dhabi • Fairmont Hotel & Service Apartments, Dubai • The Jewel of the Creek, Dubai • Habtoor City, Dubai 23 24
construction business news me // July 2017 // 53 26 25 MAG Property Development Talal M. Al Gaddah, CEO Azizi Developments Farhad Azizi, Ceo M AG Property Development (MAG PD) is the real estate development arm of MAG Group, one of the region’s largest corporate entities. Heading the organisation’s six depart- ments – finance, project management, sales, marketing, administration and legal – Talal Al Gaddah’s leadership and man- agement skills are driving MAG Property Development to new heights. Al Gaddah’s is determined to ensure the company’s position as one of the top-five real estate developers in the UAE. During his tenure as the head of sister company Invest Group Overseas, Al Gad- dah was instrumental in opening up new markets including successfully launching The Gate in Frisco City, Texas, USA. As MAG PD’s CEO, he is also looking beyond the shores of the Middle East and is intent on leading the developer’s global expan- sion while building on its footholds in the Far East, Europe and North America. The past year has seen MAG PD make progress with its MAG 5 Boulevard development in Dubai and it launched the third phase in February, aiming to provide quality affordable housing under the banner of its ‘Quality of Life’ concept. It has also recently awarded a contract to Parsons for the design and construction supervision at its $1bn District 7 project in Meydan City, Dubai. A rapid decade of growth has seen Azizi Developments emerge as a major investor in the region. The company is part of the Azizi Group which was founded in 1989 by Mirwais Azizi, an Afghan entrepreneur with only $700 to spare and what he describes as “strong will to provide a better life” for his growing family. The UAE-based real estate developer kicked off 2017 with its largest ever roster of projects including 50 new developments in the residential, commercial and retail spaces. Ac- cording to Farhad Azizi, CEO of Azizi Developments, the developer’s plan matches the group’s ambitious strategy to invest in solid markets which have proven depth and stability. With much of its development commencing on sites acquired as far back as 2017, Azizi cur- rently has 20 different UAE-based projects valued at $1.9bn (AED 7.3bn), with 15 projects in Al Furjan, two in the Palm and the first in Dubai Healthcare City. In June, the company commenced site preparation work for its showpiece AED1.7bn resi- dential community within Dubai’s Meydan One master development last month. Phase 1 of the project will include 2,273 residential units spread across 18 mid-rise buildings, as well as a retail district. The project’s second phase will involve the development of 17 additional buildings featur- ing 2,162 residential units. “The rapid development of local infrastructure shows the full commitment of the Dubai govern- ment in its delivery of announced plans,” Azizi recently told the Khaleej Times. “The government systems are in place to encourage development from a micro perspective. When evaluated at the macro level, we are finding that currencies are in our favour; in addition, the new government changes in the United States and Europe are directing investments towards this region. (The launches) not only reflect our success but showcases Dubai’s booming real estate market.” Projects: • District 7 • MAG 5 Boulevard • MAG 214 • MAG Complex • Emirates Financial Towers Projects: • Meydan One residential properties • Farhad Azizi Residence • Azizi Aura in Downtown Jebel Ali • Royal Bay
// construction business news me // July 2017 54 // Power 60 27 28 A l Futtaim Carillion (AFC) has become a go to contrac- tor for some of the most prestigious government- linked projects in Dubai. The joint venture of Dubai’s Al Futtaim and UK-based Carillion clinched one of the most lucrative construction contracts of the year in March when it won the $600mn main contract to build the three Theme Districts at Expo 2020 Dubai, seeing off stiff competition from 34 other contractors from around the world. The company started 2017 with a bang, securing a $200mn contract to deliver the next phase of One Central in Dubai, a huge new project that forms part of the expansion of Dubai World Trade Centre (DWTC). Phase 1A6 of the project, comprising two Grade A office buildings of 12 and 8 storeys, is worth approximately AED 725mn ($197mn) and is scheduled for full completion at the end of 2018. AFC is no stranger to the project having already completed Phase 1A2 of the development and is working on Phase 1A5, which was awarded in October 2015. In 2015 Meraas awarded AFC with a GBP 155mn ($196mn) con- tract to build the La Mer project at Jumeirah in Dubai. The project involves the construction of a mixture of top-end retail and public- facility buildings, together with substantial external landscaping to create over 1km of beach-themed frontage. A landmark project completed this year was the Jumeirah Al Naseem hotel, a 430 room 5 star hotel and part of the AED 2.5bn expansion of the Madinat Jumeirah hotel complex in Dubai. And last year the contractor put the finishing touches to the second phase of Meraas’ The Avenue at City Walk having completed the first phase in 2013. S alini Impregilo had a landmark year in the Middle East, notching up a number of major contract wins. It began when a consortium led by the Ital- ian contractor won a $955mn contract to build a huge housing development in Kuwait that will be home to 400,000 people. More recently, the firm scooped a $435mn contract to build the Meydan One Mall in Dubai, a huge undertaking that includes a giant mall with a retractable roof and the world’s largest indoor ski slope. In between its US subsidiary, Lane won a $75mn contract for work on the new terminal at Al Maktoum International Airport in Dubai. Another subsidiary, Fisia Italimpianti and a Spanish joint-venture partner bagged a $255mn deal to design and build a water desalination plant in Saudi Arabia for ACWA Power. Also in KSA, Salini Impregilo won a $300mn contract to build a new mall for developer Al Khozama Man- agement Company this year. Salini Impregilo is a major player in the Riyadh Metro project, leading the ArRiyadh New Mobility (ANM) consortium, one of three involved in the $23bn, six-line Riyadh Metro proj- ect that will cover 176 kilometres. ANM reached a milestone earlier when it completed tunnel excavation work on the longest line of the project this year. Working on one of the venues for the FIFA World Cup in Qatar in 2022. Operating in over 50 countries with 35,000 employees, a turn- over of around EUR 6.1bn ($6.8bn) and a backlog of EUR 37bn, Salini Impregilo is a global player in the construction sector. Projects: • Expo 2020 thematic Districts • One Central • Jumeirah Al Naseem • Citywalk Projects: • Riyadh Metro • Meydan One Mall • Al Maktoum International • Sheikh Zayed Grand Mosque • Abu Dhabi Deep Sewer Tunnel Al Futtaim Carillion Derek Lewis, managing director Salini Impregilo Pietro Salini, CEO
construction business news me // July 2017 // 55 Schon Properties Noorul Asif, COO Cimolai Rimond Giuseppe Chiaranda, CEO S chön Properties was formed as a UAE-based property development and management extension of the Schön Group, a conglomer- ate originating from Pakistan. Launched in 1996, Schön Properties has been a mainstay of Dubai’s vibrant real estate market for many years. According to the company, it has transitioned from its traditional role as one of Dubai’s leading, leasing and building management specialists to incorporate real estate development, "us- ing its experience with end-users to develop mixed-use and residential projects". Schön Properties is focused on delivering projects set at a value point that is com- petitive, both in terms of price and size. In March this year, it announced the transfer of 200,000sqm of developments at Dubai Lagoon to Xanadu Real Estate Development LLC – a significant benchmark in the overall development of the $2 billion master-planned mixed-use project. A joint venture with Al Hamad Group followed in Aprito develop iSuites – a large US$870 million home-grown hospitality portfolio that will see the development of 2,550 hotel apartments at a single site within Dubai Investment Park – close to the World Expo 2020 venue. Through the deal Al Hamad Group is investing equity to finance the construction of the project and acquired a substantial stake in the 2,550 unit development while Schon Properties will retain a substantial number of units for recurring income. C imolai Rimond Middle East may be the newest kid on the block but in reality, it leverages a strong, decades-old Italian heritage with proven expertise across the complete archi- tectural, engineering and construction eco-system. Together the joint venture partners, operating from its regional base in Abu Dhabi, offer complete 360-degree turnkey con- struction based on the latest advances in BIM and integrated project delivery solutions. Both partners are associated with some of the most challenging and stand-out projects of the 21st century across a full breadth of market segments including, hospitality, healthcare, education, exhibition centre and pavilions, transportation and marine infrastructure. Both are also well attuned to the Middle East. Cimolai was involved in the delivery of Doha’s landmark Aspire Tower and the giant maintenance hangar at Hamad International Airport, while Rimond, which operated an office independently in the UAE, was responsible for the building design management, building informa- tion modelling and construction management of the showpiece UAE Pavilion for Expo Milano 2015. The company has since handled the complete dismantling of the pavilion and the logistics behind its relocation to Masdar City where it will become the clean energy pioneer’s visitor/welcome centre. Cimolai Rimond Middle East’s rich vein of expertise helps clients capture more value from every phase of their work by mitigating risks, providing consistency and getting things built and managed. It is transforming fragmented, traditional project management processes yielding outcomes much below project expectations, to a collaborative, value-based Integrated Project Development (IPD) process with bespoke BIM technology tools delivering high-outcome results. Projects: Projects: • Schon Business Park • Dubai Lagoon • Lotus • Ava Designer Residences • UAE Pavilion Expo Milano 2015 • Hamad International Airport • Aspire Tower 29 30
// construction business news me // July 2017 56 // Power 60 32 Multiplex Marcus Truscott, managing director Meydan Group Saeed Humaid Al Tayer, chairman and CEO S ydney-headquartered construction contrac- tor Multiplex has carried out a number of very high profile projects in the UAE and Qatar over the years. Probably the most prestigious ad- dress the company has worked on is Emirates Towers, home to the main office of Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum. Multiplex also counts the world’s tallest hotel, JW Marriott Marquis in Dubai, among its portfolio as well as the Gate Building at Dubai Interna- tional Finance Center (DIFC). Major ongoing projects in the region include the Al Maryah Central Mall in Abu Dhabi for developer Gulf Related. The main structure of the 2.8 million sq ft mall was completed in January and the project is due to open in 2018. Multiplex has also reached an advanced stage of construction on Omiyat’s One at the Palm project on Palm Jumeirah. At the other end of Jumeirah Beach Residence (JBR), the contractor is building the resort hotel component of the exclusive Bluewa- ters Island for Meraas. M eydan is the concept of His Highness Sheikh Moham- med Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai. Already world famous for the venue that hosts the Dubai World Cup, the world’s richest horse race, the vision is to eventu- ally create an integrated city that positions Dubai at the centre of the competitive global business stage. Mohammed Bin Rashid Al Maktoum City is the residential component of the project that covers approximately 47 million square feet of prime freehold development in the heart of Dubai and features several develop- ment projects by Meydan. The latest component is Meydan One, a 40,406,320 square foot devel- opment between Meydan and Al Khail Road that will eventually be home to 83,000 residents. It will break at least seven world records and feature the 711m tall Dubai One tower, the Meydan One Mall, a civic plaza with dancing water features, a 4km canal, a berth marina, 5.3km bicycle and jogging trails, a 9km boardwalk, a 300m long beach and a heritage village. Sheikh Mohammed laid the foundation stone for Meydan One Mall in March. Italian contractor Salini Impregilo is carrying out the main words for the project which will have an enormous retractable roof, measuring 160 metres by 100 metres. Construction is scheduled to be completed by 2020, in line with phase 1 of the Meydan One mega development. Projects: • Al Maryah Central Mall, Abu Dhabi • One at Palm, Dubai • Emirates Towers, Dubai • JW Marriott Marquis, Dubai • Marina Promenade, Dubai Projects: • Meydan One Mall • Bab Al Shams Desert Resort & Spa • Dubai One tower • Meydan Racecourse 31
33 Daemaar Group Mohammed Jafer Musthafa, founder and MD M ohammed Jafer Musthafa was just 26-years-old when he established Daemaar Group. Now he dreams of making Daemaar Group one of the top companies in the Middle East. Starting out with Daemaar Contract- ing, a construction company specialising in Civil and MEP, he expanded the com- pany with the acquisition of SPELCO-MEP in 2015. The latest addition to its con- struction portfolio, MJM contracting, works with leading public and private partners in Sharjah and Dubai. Today, less than five years since its launch in 2013, Daemaar Group has expanded to comprise six stand-alone companies established within the construction (MEP and Civil), Facilities Management, Trading and Retail sec- tors. Based in the UAE, with offices in Qatar, Kuwait, Oman and Saudi Arabia, Daemaar works throughout the Middle East and beyond. construction business news me // July 2017 // 57
// construction business news me // July 2017 58 // Power 60 Sobha PNC Menon, chairperson Khansaheb Steve Flint, general manager T he Indian-owned Sobha Group is a highly diversified group with developments and investment concerns in the UAE, Oman, Qatar, Bahrain, Brunei and India. The company was first conceived as an inte- rior design specialist in Oman by its founder PNC Menon but has gone on to establish itself as a major real estate and property developer across the GCC through its Sobha Real Estate arm. It also made the break into construc- tion with the establishment of the Sobha Engineering & Contracting company in the mid-1990s. Acting as both a construction company and developer, the company re- gards itself as being at the forefront of ‘back- ward integrated real estate development’, an approach familiar to the Indian market but rare in the Middle East. The property development operation was at first concentrated within the Indian market but a series of initiatives and projects such as its joint-venture with Meydan (Meydan Sobha) and the vast Sobha Hartland devel- opment overlooking the Dubai Water Canal have firmly established it as a major force in the region. K hansaheb Civil Engineering was founded in 1935, making it the longest standing contractor in the UAE where it has delivered a number of the coun- try’s most iconic and important projects. In partnership with the UK’s Interserve since 1981, Khansaheb provides a combination of local knowledge and ex- perience that has enabled the firm to become one of the leading construction and facilities management companies in the UAE. Its biggest recent win was a AED 387mn ($105.3mn) contract with retail and leisure giant Majid Al Futtaim (MAF) to expand and upgrade City Centre Ajman. Khansaheb will more than double the size of the existing mall to 70,000 sq m besides expanding a number of retails units and building a new car park to create 2,400 new parking spaces. Exterior landscaping work and the re- configuration of access roads leading to the mall will also be part of the work which is expected to be completed by July 2018. Khansaheb secured the award off the back of its success- ful delivery of the expansion of Mall of the Emirates, also owned by MAF. Projects: Projects: • Sobha Hartland • District One • Hartland Aflux • Hartland Greens • Firdous Sobha • Double Tree by Hilton Business Bay • Dubai Festival City Hillside Housing • City Centre Ajman expansion 34 35
construction business news me // July 2017 // 59 36 37 P arsons is an engineering services firm with experience in the engineering, construction, technical, and professional services industries. The corporation is a leader in many diversified markets but is probably best known for its role in big infrastructure projects. The California-based firm has had a continuous presence in the Middle East for more than 40 years but delivered its first projects here more than 60 years ago. That was in 1953 when it carried out a groundwater survey in Kuwait. In the last 10 years alone, Parsons has completed more than 900 projects in the Middle East, including some of the biggest infrastructure projects in the region. Among these are Dubai Metro – the world's longest fully automated metro network, and first in the region. Etihad Rail Phase 1 – the region’s first freight rail project. Hamad International Airport Doha. Palm Jumeirah Bridges and Palm Crescent Tunnel in Dubai – vital infrastructure for what is probably one of the world’s most famous artificial islands. Parsons currently has around 200 active projects in the region. The biggest ones include the Abu Dhabi Airport Expansion Pro- gramme; the huge Lusail Development Project in Qatar; and the Ministry of Housing Programme in Saudi Arabia. The latter is part of a programme to build 500,000 houses in the kingdom over the next few years. F ounded in 2003, Dubai-based Diamond Developers was an early mover after freehold property owner- ship was introduced a year earlier. The company has subsequently conceptualised and completed a notable portfolio of premium developments, deliver- ing more than 3,039 residential units and 38,000sqm of com- mercial space in prime communities across the emirate. As the freehold industry in Dubai matured, the progressive developer shifted its focus towards properties and businesses that not only provide economic and aesthetic value, but do so in a sustainable manner. Arguably, it is the development of The Sustainable City in Dubai that is its most significant contribution to the construction sector in the region. The brainchild of CEO and civil engineer Faris Saeed, he instigated the project after agreeing to swap his stake in the ailing The Lagoons in the Dubai Creek district for what was then a relatively barren corner on the outskirts of Dubai. Considered one of the first (if not the first) large-scale sustainable project in the emirate, the initial phase of the mixed-use residential development was completed in 2016. Its green credentials include 100% water recycling and reuse and the use of low carbon building materials. The development also features The Central Green Spine, a park that has more than 3km of recreation and outdoor facilities designed to inspire an active lifestyle. A second phase comprises of the luxurious Hotel Indigo, a country club, a rehabilitation centre, a school, and the cutting-edge Innovation Hub, which will offer first-rate professional training, promote research and development, host conferences and events, support sustainability start-ups, and provide advisory services to a wide range of stakeholders. Projects: • Dubai Metro • Etihad Rail Phase 1 • Sheikh Zayed Road, Dubai • Abu Dhabi Airport Expansion • Ministry of Housing Program, KSA Projects: • The Sustainable City • Marina Diamond • Diamond Views • Diamond Business Center Parsons Gary Adams, group president Diamond Developers Faris Saeed, CEO
// construction business news me // July 2017 60 // Power 60 39 KEO Consultants Donna Sultan, CEO Arcadis Dr. Kamiran Ibrahim CEO, Arcadis Middle East T his GCC focused firm offers planning, design, engineering, and project management solutions. With offices spanning seven countries, the company has worked on dozens of projects in the region stretching back over 50 years. Led by Donna Sultan, KEO works across every major sectors from commercial/retail to industrial, transportation, education, health- care to sports arenas. Recently awarded projects include an agreement with Kuwait University to provide Design and Construction Supervision Services for the College of Architecture and College of Computing Sciences and Engineering at their Sabah Al Salem University City campus. Another contract is for full design and con- struction supervision services for the Al Aqeeq mixed-use hotel com- plex located in the north of Riyadh. KEO is also providing consultancy services on two of the venues for the 2022 World Cup in Qatar – Al Bayt Stadium and Al Wakrah Stadium. G lobal design and consultancy firm Arcadis has worked on some of the UAE’s most famous land- marks, including Burj Khalifa, The Atlantis Hotel on Palm Jumeirah and Emirates Towers. More recently the company was appointed to lead the innovative design for Hazza Bin Zayed Stadium in Al Ain, Abu Dhabi and ensure it could be built quickly and to a high standard. In the past year Arcadis was contracted as lead consultant and designer on the Tilal Mall project in Sharjah. Under the agreement, the firm will provide architectural, engineering and cost consultancy services on the project, which will occupy an area of 2 million sq. ft. The firm was also appointed by Al Hosn Gas, a subsidiary of Abu Dhabi National Oil Company (ADNOC), to perform a Health, Safety and Environmental Impact Assessment (HSEIA) study for the Hail and Ghasha sour gas fields, the largest oil and gas proj- ect currently being planned in the UAE. Last month Arcadis promoted Dr. Kamiran Ibrahim as CEO for its Middle East operations, taking the reins from Graham Reid who moved to another company in the UK. Projects: • DAMAC Towers by Paramount, Dubai • Sofitel Downtown Dubai • KIA Headquarters building, Kuwait • Al Wakrah Stadium, Qatar • Hamad International, Airport, Qatar Projects: • Burj Khalifa and Downtown Dubai • The Galleria Mall, Abu Dhabi • Atlantis Hotel, Dubai • Hazza Bin Zayed Stadium • Emirates Towers 38
construction business news me // July 2017 // 61 41 40 S ix Construct, a sub- sidiary of the BESIX Group, is the largest Belgian construction company operat- ing in the Middle East. The company combines the efforts of a highly skilled workforce, along with strategic planning and innovative use of technol- ogy to overcome the most complex business challenges. Six Construct is a multi-services company that operates in the construction of commercial and residential buildings, sport and leisure facilities, industrial, infrastructure, civil and marine- related projects. The company has had the honour of working with a very unique portfolio of projects and clients over the years, including among others, the world’s tallest tower - The Burj Khalifa, The Dubai Tram, The Emirates Palace Hotel, Sheikh Zayed Grand Mosque, Dubai Water Canal, The Green Planet, Ferrari World Theme Park, LEGOLAND, The Khalifa Stadium, as well as Hamad International Airport in Qatar, and King Abdullah Sports City in the Kingdom of Saudi Arabia. It’s three biggest wins in the past 12 months were the raft foundations for The Tower at Dubai Creek Harbour, The Royal Atlantis Resort and Residences and in Oman it secured a new order for liquid berths in Duqm. Its other ongoing projects include: Yas Theme Park, Bahrain Terminal, Wakrah Stadium in Qatar, among others. Six Construct was also recently awarded Mina Khalid Port in Sharjah as well as the new Masdar Neighbourhood in Abu Dhabi. In its 2016 financial year, Six Construct recorded revenue of approximately $1.08bn (AED3.95bn). Pierre Sironval, managing director of Six Construct, expects to grow this figure to $1.09bn (AED4bn) in 2017, having already secured $983m (AED3.61bn) worth of contracts. D esign consultancy SSH has been in expansion mode this year, taking up more office space in Dubai barely 12 months after opening its first office in the emirate to accommodate rapid growth and future expansion plans. The Bob Hope-led company is expanding its portfolio of projects across all market sectors including commercial, cultural, heritage, hospitality, mixed use and residential as it bids to become the architectural and engineering consultant of choice in the MENA region. Project wins this year include the full design contract for the Eagle Hills’ Marassi Boulevard project in Bahrain. The project consists of four low-rise residential buildings of seven to ten floors, including more than 240 homes and boasting 700 sqm of community retail. SSH is also a specialist in the design of healthcare facilities and is working on a number of projects around the region. In March it was announced that SSH, in joint-venture with Studio Altieri, has signed the main design consultancy agreement for the Kuwait New Maternity Hospital (KNMH) with design and build contractor Impresa Pizzarotti & C SpA. For a total contract value of $817mn, the project design and build team will deliver the project over 54 months. SSH currently employs over 1,000 people with offices in Abu Dhabi, Algeria, Bahrain, Dubai, Iraq, Kuwait, London, Oman, Qatar, Saudi Arabia and South Africa. Projects: • The Tower at Dubai Creek Harbour • The Royal Atlantis Resort & Residences • Yas Theme Park Dubai Water Canal • Wakrah Stadium in Qatar Projects: • Marassi Boulevard, Bahrain • Kuwait children’s hospital • Harbour Views, Dubai • Sheikh Jaber Al Ahmad Cultural Centre, Kuwait Six Construct Pierre Sironval, managing director SSH Bob hope, CEO
// construction business news me // July 2017 62 // Power 60 El Seif Engineering Contracting Company Khaled Musaed El Seif, chairperson Aldar Properties Mohamed Al Mubarak, CEO S audi Arabia-based El Seif Engi- neering Contracting is a member of the El Seif Group, a major Saudi group of companies with diverse business in the Kingdom and the Middle East. Establishment in 1975, El Seif Engineering Contracting is a provider of world-class construction and engineer- ing services, with a long list of prestigious projects that have transformed the skylines of the kingdom’s major cities. In 2002 El Seif completed construction of the famous Kingdom Tower Project, one of the largest and most modern mixed-use developments in the Middle East. The iconic tower rises over 300 metres above the Saudi capital city of Riyadh. More recently the company was con- tracted by Meydan Group to build Entisar Tower on Sheikh Zayed Road in Dubai. The 520 metre project comprising of 113 floors will be the second tallest tower on Sheikh Zayed Road after Burj Khalifa once complete around 2020. El Seif doesn’t just do tall buildings. The company has delivered full MEP services for the main stations servicing the Haramain High Speed Railway and has carried out work on a range of infrastructure projects as well as airports. F rom its beginnings in 2005 through to today, Aldar Properties continues to shape and enhance the urban fabric of Abu Dhabi as well as other key areas of the emirate. The developer has built up over $10bn in as- sets. Among its most notable is projects is the internationally rec- ognized HQ building situated in the Al Raha Beach development, the Gate Towers on Al Reem Island and the Yas Island’s F1 circuit. Major contracts awarded this year include a AED 1.7bn ($462mn) deal with Trojan General Contracting for the first three precincts of its flagship residential development on Yas Island – Yas Acres. It also awarded Ghantoot General Construction with the AED 500mnn ($136mn) main contract to build Mayan, a luxury residential development located on Yas Island consisting of five, 11-story buildings. Major recent project launches include The Bridges, a AED 1.3bn ($354mn) mid-market residential development on Reem Is- land. The project will consist of six towers on two plots separated by the new 2.4km canal that runs through Reem Island. Projects: Projects: • Kingdom Tower, Riyadh • King Abdullah Financial District • Entisar Tower, Dubai • Haramain High Speed Railway • Aldar HQ • Gate Towers • Yas Mall • Yas Marina circuit • The Bridges 42 43
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// construction business news me // July 2017 64 // Power 60 45 44 Deyaar Saeed Al Qatami, CEO Louis Berger Tom Topolski, president (international) N ow a UAE-based leading local and regional real estate developer and real estate services company, Deyaar was originally the property management arm of the Dubai Islamic Bank. The company’s current project portfolio includes iconic residential and commercial tower developments as well as upcoming hospitality developments. While the property developer has been en- ergised by the opportunities presented by the Expo 2020 Dubai, according to its CEO Saeed Al Qatami, it has approximately 500,000sqm of potential new projects in the pipeline, including sites across Dubai such as Dubai South, Silicon Oasis and Business Bay. Perhaps learning the lessons of other developers in the UAE, Al Qatami says he is maintaining a watchful eye on market conditions and holding back on proposed new launches until the right investment climate is in place. The company currently has $740mn worth of construction projects underway including the Mont Rose project in Barsha South, the Atria project at Business Bay, as well as a hotel project and its Midtown project, an integrated urban community in Dubai Production City near the busy Sheikh Mohammed Bin Zayed Road. In June it was announced that it has signed an agreement with real estate mar- keting and consultancy company UC For- ward, to run roadshows in China showcasing Deyaar properties to Chinese investors. L ouis Berger has been an integral member of the Middle East construction market since it first stepped into the re- gion in 1969. Spanning over 15 countries, the consultant and architect is able to draw from a resource base of more than 1,000 employees in its offices located in the United Arab Emirates, Qatar, Saudi Arabia and Kuwait. Boasting a turnover in excess of $1bn, Louis Berger offers a full range of professional services to help infrastructure and development clients on the most complex challenges presented by projects in transportation, planning and design, buildings and architecture, environment and water. The firm’s integrated teams of professionals have delivered some of the most iconic projects in the Gulf region and includes a diverse range of talents such as architects, scientists, engineers, economists, design- ers and planners, sociologists and even historians. Recently completed projects include the Sheikh Za- yed Tunnel and Al Salam Street reconstruction in Abu Dhabi and Queen Alia International Airport in Jordan. Projects: • Mont Rose • Midtown • Atria at Business Bay • Residential District at Dubai South Projects: • Sheikh Zayed Tunnel • Al Salam Street • Queen Alia International Airport
construction business news me // July 2017 // 65 46 47 H LG Contracting has rebounded from a split with the Al Habtoor Group to secure some impressive contracts wins in the past 12 months. The company, formerly known as Habtoor Leighton, officially parted ways with its former partner in December several months after the breakup was announced. Prior to the split the contractor was responsible for building a number of stand out projects, especially in the Gulf. Among the more recent is Al Habtoor City alongside the new Dubai Water Canal. The hotel component of the project is complete while the finishing touches are being put to the residential buildings. Current projects include the AED 500mn ($136mn) contract for Gate Avenue at DIFC, one of the biggest property projects in Dubai. The total built up area will be approximately 61,000 sq. m. and consist of a reinforced concrete structure and a mosque spanning three levels, steel nodes with glass cladding, mechanical, electrical and plumbing works, finishing and cladding. The development will comprise more than 200 dining, shopping, cultural experiences and entertainment options. At the turn of the year HLG was awarded a construction contract valued at AED 401mn for Al Garhoud Towers by Hasabi Real Estate. HLG will be responsible for the construction of three buildings conjoined through a single mezzanine floor, with work scheduled for completion in the third quarter of 2018. HLG recently completed building the bridges linking Bluewaters Island with the mainland under a reported AED 475mn contract. O ver the course of a few years, global engineer- ing and infrastructure advisory company Aure- con has emerged as one of the Middle East’s leading names in engineering consultancy. This rapid ascent culminated in the firm’s appointment last year on The Tower at Dubai Creek Har- bour, set to become the tallest structure in the world when complete in time for Dubai Expo 2020. Aurecon is engineer/ architect-of-record for the project which is being designed by Santiago Calatrava for Emaar Properties. Projects: • Gate Avenue DIFC, Dubai • Al Garhoud Towers • Jewel of the Creek • Al Habtoor City • Bluewaters Island access Projects: • The Tower, Dubai • Etihad Towers, Abu Dhabi • Madinat Jumeirah Resort, Dubai • Motiongate Dubai • Yas Acres, Abu Dhabi HLG Contracting Moustafa Fahour, CEO and MD Aurecon Paul Lombard, managing director
// construction business news me // July 2017 66 // Power 60 Ali Mousa & Sons Ali Mousa Ali Saif Al Naqbi, chairman Dubai Properties Abdullah Bin Lahej, CEO A li Mousa & Sons Holding Group (AMSHG) journey of growth started in 1978 in the coastal town of Khorfakan, when founder and current chairman Mr. Ali Mousa Alnaqbi set up AMS Contract- ing as a small private family firm with a vision of contributing to the construction boom sweeping the United Arab Emirates. Since then the Dubai-based company has earned an impressive record of successfully completing projects for its clients. Ali Mousa & Sons offers a full range of construction services from main contracting to MEP, metal work, joinery and decoration. The company has worked on a multitude of projects including education facilities, gov- ernment buildings, traffic centers, hospitals and forensic laboratories, police stations, sport halls & clubs, luxury villas compounds, offices, residential and commercial towers and various industrial buildings. Among its recent contracts is a AED 550mn deal to build Al Fattan Down Town, a three tower project in the Satwa area of Dubai Ali Mousa & Sons has extended activities to the other countries in the region includ- ing the Kingdom of Saudi Arabia where the firm is evaluating a number of promising opportunities. D ubai Properties, the company that developed the famed Jumeirah Beach Residence (JBR) and part of Dubai Holding, has a variety of projects in its portfolio of projects. Among the biggest currently in the works is luxury seafront tower 1/JBR. Dubai Con- tracting Company (DCC) won a contract in February to build the 46-storey tower which is due to be finished by the end of 2019. Another of the Abdulla Lahej-led company’s major properties is the Bellevue Towers residential project in Business Bay being built by SEIDCO General Contracting under a AED 200mn ($54.5mn) deal awarded earlier this year. Construction of the Dubai Wharf at Culture Village project is also close to being complete, with the last of four towers set for handover by the end of 2047. But the most high profile development is undoubtedly the AED 1bn Marasi Business Bay, a project located on Dubai Water Canal that features unique water homes, floating restaurants, a yacht marina and a 12km waterside promenade. Construction has already begun but the whole project is expected to take a num- ber of years. When complete it will a crowning achievement for Dubai Properties which has left a bigger mark on the Business Bay area than any other developer. Projects: Projects: • Al Fattan Down Town • Al Raghayeb 2, Ajman • Marasi Business Bay • Bellevue Towers • Dubai Wharf • 1/JBR • Bay Square 48 49
construction business news me // July 2017 // 67 51 50 Projacs Ashraf Al Garf, CEO Al Fara’a Group Jawaharlal Gangaramani, president and executive chairman R egional project management spe- cialist Projacs merged in 2015 with Egis, a France-based engineering company with an international reach. Chief executive Ashraf Al Garf, who joined the company in 1996, is seeing the company through the transition and inte- gration phase of the tie up, which will last five years and eventually end with Projacs being 100 percent controlled by Egis. Starting out in Kuwait in 1984, Projacs spread first to the rest of the Gulf and from there throughout North Africa. The com- pany specialises in project management for all sorts of buildings and oversees a number of other business units, including a Facilities Management division and its well-known Projacs Academy. Projacs is currently managing a huge variety of building projects throughout the Middle East. They range from one of the big- gest children’s cancer hospitals in the region in Egypt to the upgrade of two stadiums that will host matches at the 2022 World Cup in Qatar, including Khalifa Stadium which is almost complete. The company has recently finished working on the Central Bank of Kuwait, a national landmark, and is also engaged on the new National Bank of Ku- wait headquarters. In the UAE it is working on a major hotel and furnished apartment complex on Palm Jumeirah. In Saudi Arabia Projacs is working on Jed- dah’s King Abdulaziz International Airport in partnership with Egis and is managing four other domestic airports in Saudi. Large scale residential projects and hospitality projects are also on the cards in the kingdom. A l Fara’a Group is a UAE based integrated multi-disci- plinary construction and industrial group employing over 18,000 people across its operations in the UAE, Saudi Arabia, Qatar, Oman, Kuwait and India. Comprising ten companies covering various contracting disciplines, the group has executed over 2,000 projects of varied scope and is currently working on projects at multiple loca- tions throughout GCC. Projects executed include high rise towers, hospitals, heritage structures, hotels, defense projects, commercial and residential developments, cinemas, multiplexes, palaces, villas and shopping malls. One of its biggest recent wins was the main contract to build the $1bn Richard Rogers-designed Al Maryah Plaza in Abu Dhabi. Stationed at the waterfront in Al Maryah Island’s new financial free zone, Maryah Plaza will consist of four towers, three of which will house luxury apartments. Al Fara’a Group is vertically and horizontally integrated and has honed its offering by setting up group companies in allied sectors like ready mix concrete, properties and development, precast structures, steel structures, electro-mechanical services, aluminum and glazing structures, interiors and joinery, landscaping, irrigation and painting. Projects: • Central Bank of Kuwait • KAIC Jeddah • Khalifa Stadium Projects: • Al Maryah Tower, Abu Dhabi • Wafi Hotel Complex and Mall, Dubai • Al Silaa Hospital • Plaza View • Siemens HQ Masdar, Abu Dhabi
// construction business news me // July 2017 68 // Power 60 52 53 T he RS Group, with business interests in formwork and scaffolding, technical contracting and general trading has been successfully enabling construction since 1989 across the Middle East and Africa. The group has built an excellent reputation among major contractors and engineering consultants by consistently de- livering reliable solutions that meet critical project requirements with the highest standards of quality, safety, design, reliability, sustainabil- ity, efficiency and cost effectiveness. Over the years, several other companies in UAE have become members of the RS Group adding to its strength and capabilities : 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. It also owns and operates one of the most advanced formwork manufacturing and fabrication facilities in the region. Powered by its member companies, RS Group continues to build and strengthen its expertise in formwork and scaffolding for diverse construction applications ranging from bridges, infrastructure, tunnels, malls, buildings, towers, hotels and complex architectural structures. The group’s solutions have been successfully used in multiple distinctive projects throughout the region. D anish engineering, design and consultancy firm Ramboll’s Middle East operation specialises in structural engineering, building services, fire and risk assessment, acoustics, facade engineer- ing, sustainability and environmental services, transport infrastructure and transport, master-planning and oil & gas services. The company has four offices in the region located in Abu Dhabi; Doha, Qatar; Dubai; and Riyadh, King- dom of Saudi Arabia and employs 550 international experts. Ramboll was heavily involved in the building boom in the Middle East, lending its expertise to some of the most chal- lenging and inventive designs that call for extraordinary en- gineering solutions. It has also been involved in the develop- ment of some of the most innovative buildings in the region, working in close cooperation with well-known international architects and lead developers. The firm is one of the leading authorities in sustainable construction projects in the region and was the Design and Build contract’s lead consultant in the development of The Green Planet, Dubai’s very own tropical indoor rainforest, complete with more than 3,000 species of plants, animals, and free-flying birds. It has also made a successful advance in the region’s waste management sector and is overseeing projects in the UAE (where it is offering advice on the rehabilitation of some of their older landfill sites), Oman and Saudi Arabia (where it helping individual municipalities to identify potential oppor- Projects: • Sheikh Zayed Grand Mosque, Abu Dhabi • Emirates Palace hotel, Abu Dhabi • Al Reem Island Bridge, Abu Dhabi • Sharjah International Airport • City Walk, Dubai. Projects: • Green Planet • Ferrari World • The Change Initiative • U Bora Towers • Doha Marina Mall RS Group Sausan Bahnasi, CEO Ramboll Middle East Rob Hounsome, regional director
construction business news me // July 2017 // 69 Dar Al-Arkan Ziad El Chaar, CEO EFS Facilities Services Tariq Chauhan, Group Chief Executive Officer B ased in Riyadh, Dar Al-Arkan is the largest listed real estate company in the Saudi stock market with a capital of SAR 10.8bn ($2.88bn) and total assets close to SAR 25bn ($6.6bn). The company enjoys a strong financial position, and a real estate portfolio that is the largest and most diversified in the Kingdom. Reacting to a largely flat property market in Saudi Arabia, it is currently under- taking a real-estate development strategy un- derpinned by a reduction in its operating costs and a rationalisation of spending. However the appointment of DAMAC Properties’ former managing director Ziad El Chaar will hopefully spark a charge driven by the expected boost to the property market of the Kingdom’s Vision 2030 and the National Transformation Program (NTP) 2020 initiatives. Dar Al-Arkan is intent on expanding both in- side and outside the Kingdom, and is looking to start a range of new projects, considering the low cost of building and construction materials, and the increasing demand for housing projects. The company also hopes to benefit from the Saudi ministry of housing (MOH)’s Wafi programme which is designed to control supply and demand in the property market while working alongside the private sector to ensure the construction of 1.5 million homes in the next five years. E FS Facilities Services is a leading provider of integrated facilities management services in the Middle East and Africa (MEA) region with a contract backlog now worth in excess of $1bn. Though it may be based in Dubai, the Tareq Chauhan-led company has grown over the years and now trades across a wide geography from Turkey to South African, Morocco to India and most places in between. In the process the company developed an unrivalled supply chain that allows it to work for multinational companies across multiple countries. “The satisfaction and trust that we’ve earned from our clients is one of the significant influ- encers that has helped us expand our global operational footprint to cover more than 20 key markets across MEA and South Asia,” Chauhan said earlier this year. “Our business progress is best demonstrated by the fact that today, we manage over 350 million sq ft of built up commercial and residential space for several Fortune 500 companies across the MEA and SA region. Our client retention rate of 97 percent, and the sustained growth of our revenue stream in the last five years, perfectly demonstrate our regional market leadership position.” Looking ahead EFS forecasts sustained midterm growth in key markets of UAE, Saudi Arabia, Qatar, Egypt, and India, driven by the rising demands of growing population. The company plans to continue expanding its global workforce which currently exceeds 15,000 skilled and experienced personnel. Projects: • Naeem el Jiwar Project • Parisiana Living Villas • Juman Project • Al-Qasr Mall • Shams Alriyadh 54 55
// construction business news me // July 2017 70 56 57 58 T rojan General Contracting is one of the fastest growing construc- tion contractors in the UAE, known especially for building large villa developments. Under a AED 830mn contract with Na- kheel, the company is working on 489 villas at the Nad Al Sheba community, a project expected to complete in 2018. More re- cently, in May Trojan secured the AED 1.7bn ($462mn) main contract for the first three precincts of Aldar’s flagship development in Abu Dhabi – Yas Acres. Work includes all infrastructure, 652 villas and townhouses, the golf course, golf club house, mosque, retail and community clubs. An exception to Trojan’s villa work is the AED 819mn deal it secured with Nakheel to build The Palm Tower alongside National Projects & Construction, a 240 metre build- ing that have luxury residences and a five star hotel. The project is attached to Nakheel Mall which is currently under construction at the top of the trunk of Palm Jumeirah. S hapoorji Pallonji Group scooped two major Middle East construc- tion contracts in the past 12 months and also announced its entry into the property develop- ment arena in the region. The biggest win came when Nakheel awarded the Mumbai-headquartered firm with the construction contract worth almost AED 1.5bn to build The Palm Gateway, a three-tower residential, retail and beach club complex at the foot of the entrance to Palm Jumeirah. That deal was preceded by a con- tract signed with Cayan Group to build its two tower Cayan Cantara project, also in Dubai. The contractor is highly active in Oman where it built its first Middle East project in 1971. It continued that tradition when it broke ground on the Mall of Oman project for owner Majid Al Futtaim earlier this year. In September Shapoorji Pallonji an- nounced it would enter the UAE real estate sector for the first time as a developer. Impe- rial Avenue is a 45-storey residential tower in Downtown Dubai with 424 apartments above five levels of parking. E stablished in 1962, DCC is today a leading Middle Eastern construction company head- quartered in Dubai. The firm specialises in building resi- dential, commercial, mixed-use building, hospitality and leisure complexes. Recent big contract wins include the award, in October of a deal to build the Marquise Square development in Down- town Dubai for developer SRG and global property investment firm Select Property. The 29-storey building is scheduled for completion in Q4 2018. More recently DCC clinched the contract to build 1/JBR, a luxury seafront tower for developer Dubai Properties. Lo- cated at the entrance to Jumeirah Beach Residence (JBR), the 46-story tower will be built by the end of 2019. DCC has completed a number of projects in recent years including the Burj Al Salam on Sheikh Zayed Road, the Four Season Resort in Jumeirah and 014 Tower in Business. Projects: Projects: Projects: • Yas Acres, Abu Dhabi • The Palm Tower • AKOYA by DAMAC • Nad Al Sheba • Mira Oasis • Cayan Cantara • Palm Gateway • Mall of Oman • King’s College Hospital, Dubai • 1/JBR • Fairmont Hotel The Palm • Four Seasons Resort • Marquise Square • Burj Al Salam, Dubai Trojan General Contracting Eng. Hamad Al Ameri, MD Shapoorji Pallonji Cyrus Engineer, Md DCC Abdulla Yabroudi, CEO // Power 60
// NEWS // construction business news me // July 2017 72 59 60 I ndian engineering firm Larsen & Toubro has grown a big footprint in the Middle East over the decades and has an orderbook worth $7.7bn in the GCC alone. While things may have tailed off a little in the past couple of years due to faltering oil prices the Mumbai-based company has none- theless managed to score some eye-catching contracts. Chief among those is a $135mn deal to build one of the venues for the FIFA World Cup in 2022. Larsen & Toubro is also well positioned in the utilities sector and works on major electricity grid projects in most countries in the GCC. From an infrastructure business standpoint, the com- pany executes jobs on EPC, lump sum as well as on re-measur- able basis in the fields of roads, airport infrastructure, metros and railways. Both the Riyadh and Doha Metros are major ongoing projects for L&T in the region. S audi-based developer Cayan Group is probably best known for its twisting Dubai waterfront skyscraper – the Cayan Tower. However the company has passed a series of project mile- stones in the past 12 months. In November it awarded the main contract to build its Cayan Cantara project to Shapoorji Pallonji International. The project on Umm Suqeim Road in Dubai will consist of one residential and one hotel apartment tower joined near the top. The hotel component, to be operated by Rotana Hotel Management, represents the developer’s first move into the hospitality sector. Earlier this year Cayan announced plans for a similar project at the Obhur waterfront in Jeddah designed by Japan’s Nikken Sekkei, the architectural firm which also worked on Cayan Cantara. The SAR 1.2bn ($320mn) project will comprise of two towers: one a 5-star hotel and the other branded residences offering high-end living. In the past 12 months Cayan has also broken ground on Samaya, a SAR 1bn mixed use residential development in Erga in north western Riyadh. Projects: • Al Rayyan Stadium, Doha • Doha Metro • Riyadh Metro, KSA • Abu Dhabi International Airport Projects: • Cayan Cantara • Cayan Tower • Samaya • Cayan Business Centre Larsen and Toubro Sn Subrahmanyan, CEO and MD Cayan Ahmed Alhatti, chairperson
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// construction business news me // July 2017 74
construction business news me // July 2017 // 75 // Machinery & Vehicles Our monthly review of the workhorses of the construction industry Muscle & Might Muscle & Might How Mercedes-Benz is adapting to market conditions Euro Auctions promises to open in Dubai in September MAN Truck & Bus is fully focused on the Middle East 76 80 82
// construction business news me // July 2017 76 // Interview Roland Schneider, CEO of Daimler Commercial Vehicles MENA, discusses how Mercedes-Benz is adapting to market conditions. Interview by Matthew Treanor. View from the top T he Middle East truck scene has changed dramatically in recent years. New entrants have come into the market offering a slew of exciting vehicles and long-term veterans have continued to expand their own ranges and services. If they all share one thing in common it is to how to tackle the dominant force in the region and the holder of the most famous badge of them all: Mercedes-Benz. Sturdy and proven, Mercedes-Benz Trucks’ vehicles are among the best- selling in the region and are designed to endure the specific conditions of the Middle East. With the powerful Accelo, Atego, Actros and Zetros ranges, it offers the widest variety of vehicles to satisfy most demands placed by customers within the construction industry. Speaking to Roland Schneider, presi- dent and CEO of Daimler Commercial Vehicles MENA, you quickly realise how far most of its competitors have to go. No other company comes close to the number of kilometres trucks bearing the three-pointed star have racked up over the decades. “Our recent Actros Mileage Million- aire has revealed that a lot of the Actros trucks are over 1 million kilometres in mileage and we have even found several trucks in the region with over 2 million kilometres without an engine overhaul,” comments Schneider. “The campaign was run successfully in the UAE, Kuwait, KSA, and Oman with the highest mileage (over 2.3 million kilometres) coming from Kingdom of Saudi Arabia. The reli- ability of this truck is amazing.” The Actros Mileage Millionaire cam- paign coincided with the heavy truck’s 20th anniversary in the region underlying the model’s durable popularity. That lon- gevity of service and track record is not something that can be easily replicated. According to Schneider, the huge volume of fleet feedback and vehicle data helps
construction business news me // July 2017 // 77 to ensure that Mercedes-Benz trucks con- tinue to be considered at the forefront of commercial vehicles in the region. “With all the outstanding experience and knowledge gained throughout the last decades, Mercedes-Benz trucks have innovated and pioneered in varied fields such as safety, ergonomics, economy and environmental protection,” he says. “Additionally, in the particularly demand- ing conditions in the Middle East and North Africa, Mercedes-Benz trucks have become the leader in the region with a portfolio of trucks designed to endure regionally specific conditions with sturdy, proven trucks and Mercedes-Benz genu- ine spare parts.” Roland Schneider, CEO of Daimler Commercial Vehicles MENA recently revealed to CBNME that the company is fully focused on expanding its regional presence in the Middle East and Africa. “Doing this in support of our other activities has really given us a global presence. It’s now easier to name the countries we are not in,” he explained to the magazine. “In the past we steered Middle East business from Stutt- gart and I can assure you that we feel this was not good enough. We want people that wake up in the morning in the same time zone, open up the news- paper and read the same stories our customers are reading and are living in We have even found several trucks in the region with over 2 million kilometres without an engine overhaul” the same world as our customers.” To help achieve that goal, the differ- ent brands of Daimler (Mercedes-Benz Trucks, Vans and Buses and FUSO) were incorporated under the Daimler Com- mercial Vehicles MENA (DCV MENA) umbrella in 2015. DCV MENA operates as one of six regional centres worldwide. Located in Dubai, DCV MENA is respon- sible for all commercial vehicles-related activities for the brands across 20 coun- tries – from Morocco to Pakistan – in the Middle East as well as North Africa. Schneider explains that sales, customer services and parts activities for each mar- ket are further organised via its network of major general distributors. He adds that the operation is continuing to evolve as it aims to meet its ambition of being closer to its partners and customers in the MENA markets and, “to increase the added value effectively within a short time,” says Schneider. Truck sales are a useful barometer of how the construction industry is faring, particularly in a region that, despite increasing economic diversification, remains reliant on buoyant oil and gas sales. Schneider is cautiously optimistic. “The Oil & Gas industry was of course heavily impacted by the reduction in oil price during the past years which lead to delays or even cancellations of projects. During the past months a stabilisation is visible but still on a relatively low level compared to the past years. The construction market in the region is of course heavily impacted by the reduced governmental revenues which lead to delayed payment of contractors. Unfor- tunately also some projects are frozen or postponed,” he remarks. “On the other hand, we still see new construction awards in the region, espe- cially in the UAE due to the EXPO 2020 and the corresponding projects. All in all, the current business situation is still very challenging and as a business we definitely need to adapt to the market situation and offer the right solutions to our customers.” The recently introduced Mercedes- Benz Service Solutions is an example of how the company is working to further develop its product and services offer- ing. Mercedes-Benz Service Solutions
// construction business news me // July 2017 78 // Interview supports businesses via a selection of modular services and customisable packages that include the use of long- lasting Mercedes-Benz Genuine Parts to ensure vehicle uptime and protect their all-important residual value – another important strength of the brand. “With the newly launched Mercedes- Benz Service Solutions we enhanced our service portfolio for our customers and support their businesses as they are able to concentrate on their core business while we take care of the services for their vehicles. Therefore both partners concentrate on their core business and this leads to a win-win-situation for all parties involved. “Furthermore, with our customer service and parts, we ensure that all Mercedes-Benz vehicles are maintained to manufacturer standards and provide With cost pressures in the Middle East increasing and more stringent safety requirements being introduced, it is vital to remain competitive” Roland Schneider, CEO of Daimler Commercial Vehicles MENA
construction business news me // July 2017 // 79 Schneider discusses the current range “Mercedes-Benz Trucks offers the widest variety of vehicles to cater the customer requirements within this industry. With the Accelo, Atego, Actros and Zetros, we are certain that we are offering a range of vehicles that can satisfy virtually every demand placed by customers within the construction industry. Each truck model embodies all the knowledge and experience gained by our engineers over the past century, knowledge which we are continuously developing further. “Different tasks require customised vehicles. That’s why there’s no “one- size-fits-all” construction vehicle from Mercedes-Benz, but precisely the right one for each requirement instead. The Accelo and the Atego were developed for the specific needs of the building materials industry, and are ideal for light- and medium-duty construction site work thanks to their manoeuvrability and ease of handling – perfect for work in horticulture, on urban building sites and wherever space restrictions make the going tough. “As an all-rounder the iconic Actros certainly shows what it takes to make a true construction site vehicle and it is eminently suited to fulfil all its tasks in semi-heavy and heavy-duty operation. Whether it’s at work on smooth paved roads or dusty gravel roads, the Actros impresses with its off- road capability, functionality, robustness, versatility and economy. The Actros is suited for a wide range of applications within the construction industry for example as tractor-head with tipping semi-trailer operations, as tipper or concrete mixer to name some of them. “Decades of all-wheel-drive expertise, tried-and-tested technology, a heavy- duty chassis and an efficient drive train define the legendary Zetros. The Zetros demonstrates its superb ruggedness and reliability wherever paved roads are scarce and extreme weather conditions are the norm. And the many attachments and body variants make the Zetros a professional vehicle our customers can rely on in extreme off-road applications.” maximum uptime for our customers, at an economical total cost of ownership.” Another solution to ensure uptime is FleetBoard, Mercedes-Benz’ own telematics system. Schneider explains that FleetBoard enables fleet operators to manage the daily tasks of the vehicles, providing complete transparency on vehicle tracking and trip recording to ensure maximum usage. It also provides visibility on current and future main- tenance requirements and present day vehicle service condition, plugging into the after sales services available at its authorised distributors where necessary. “With cost pressures in the Middle East increasing and more stringent safety requirements being introduced, it is vital to remain competitive. More than ever before it is necessary to handle fleets in a cost-optimised approach, in order to control them transparently, and to man- age the vehicles efficiently.” Telematics solutions like FleetBoard may have been available in the market for some time, but they are arguably only very recently receiving the widespread attention of fleet owners. Schneider views government-led and large scale initiatives like the development of so- called smart cities as important drivers of adoption of the technology. “With the smart city announcement, we are seeing a trend and more aware- ness on the use of information and communication technology, which leads to higher expectations on efficiency and productivity. Fleet telematics is thus gain- ing more importance in the commercial vehicles sector,” he comments. At last year’s IAA event in Hanover, Daimler presented its own vision of a connected future for vehicles. CBNME asks whether the e-mobility and electric vehicles seen at the global event could find a role on the region’s roads in the next decade? “Hybrid and electric passenger cars are gaining popularity in this region, and the commercial vehicles are not far behind,” he comments. “With the recent presenta- tion of the Mercedes-Benz Urban eTruck last year and FUSO Canter E-Cell fleet trials in Stuttgart since 2014, the market launch of this technology is conceivable, and hopefully hitting the roads in this region in the foreseeable future given the right circumstances. Although this might still take a few more years until we see these products on the roads in the MENA region as, of course, the infrastructure in terms of charging stations also needs to be installed first.”
// construction business news me // July 2017 80 World class auctioneer promises to open up the GCC to the global market in September Coming soon: Euro Auctions in Dubai! Euro Auctions are Europe’s leading auctioneers specialising in selling industrial plant, construction ma- chinery and agricultural equipment. Holding over 60 auctions each year, on ten sites around the globe, in seven countries and on four continents Euro Auctions is a real global player. Each year, Euro Auctions sells over 70,000 items of machinery, attracting 30,000 bidders, working with 6,000 vendors, selling to over 10,000 buyers, now opening a new site in Dubai and holding four auctions each year, these figures are destined to increase! The latest development Euro Auction has acquired a 22.5 acre site within the Jebel Ali Free Zone Au- thority (JAFZA) of Dubai which also in- cludes a purpose-built auction complex covering over 3,000m² with a 360-seat, fully air conditioned and enclosed auc- tion arena as well as ancillary buildings, workshops and infrastructure. All the necessary trade, service, and logistic licences are in place for the new venture which will trade under the Euro Auc- tions brand and its first sale is already planned for September 2017. “As part of the continued global Euro Auctions brand expansion, the Middle East, and in particular the United Arab Emirates, was always the next country in which to establish a strong and stable op- erating base,” explains Jonnie Keys, Euro Auctions’ Commercial Manager. “We have many good relationships with buyers and sellers in the Middle East and Africa and this new auction location will enable us to create stronger relationships with exist- ing customers in this region and open the door to many new buyers and sellers. We have seen increased participation in our European and American auctions from the Middle East region over the past year and in particular in the last six months. Indeed, we have had numerous custom- ers request that we take a larger part in this region which this facility will allow. In addition to growing our customer base, sellers are already making contact and consigning equipment to this upcom- ing auction.” From simple beginnings Established in 1998 in Northern Ireland by the Keys family, Euro Auctions has stamped its mark on the industry and is today globally recognised as a lead- ing force within the sector. A modern, cutting-edge business with a reputation for fairness and integrity, Euro Auctions employs a dynamic team of experienced country managers and staff, most having been recruited locally for their local mar- ket knowledge and experience. Euro Auctions has continued to re- invest in the business, acquiring new locations and building them up into thriving auction centres around the globe that continue to attract considerable interest from buyers and consigners alike. In 2000, Euro Auctions added its site in the UK city of Leeds which has grown to become Europe’s biggest auction site, hosting three-day auction sales every two months, each comprising of between // Advertorial
construction business news me // July 2017 // 81 4,500 and 5,000 lots, where the final hammer prices are consistently around US$40m. Euro Auctions now has estab- lished sites in Germany, Spain, Australia, the USA and now the Middle East. In January 2017, USA Euro Auctions acquired Yoder & Frey in the USA. The long established and leading auction- eers of heavy construction equipment with a 50-plus year heritage and who established the now famous annual Kis- simmee winter consignment auction in Florida. By becoming part of the Euro Auctions brand it gained access to Euro Auctions’ global reach and worldwide machinery expertise and in return added dedicated auction sites in Kissimmee, Florida; Ashland, Ohio; and Darlington, Pennsylvania, adding a further eight important sales to the growing calendar. This means that with the addition of a permanent sale site in Dubai - today there are over 60 major sales being delivered each year by Euro Auctions around the globe. Going beyond ‘in-country’ sales Euro Auctions also delivers a number of one-off, off-site sales typically for large companies in the plant hire, mining, quarrying, transportation or manufactur- ing sectors, either due to stock rotation and disposal or cessation of trading. In early 2017, Euro Auctions delivered a one-day sale of 100-plus cherished clas- sic and highly prized historic tractors, many from the 1940s, ‘50s and ‘60s, and all from a single private collection. During the first quarter of 2017, Euro Auctions was also appointed Ernst & Young to disposal of the mobile crane assets and general construction equip- ment of the UK hire company previously known as Hewden Stuart Ltd. This was to be the world’s largest single one day sale of mobile cranes, selling 127 cranes in a record breaking one-day event de- livering a hammer total which exceeded $35 million. This was a truly impressive spectacle and a one off event. What sets Euro Auction’s apart? A typical Euro Auctions sale will see up to 5,000 pieces of heavy plant and machinery sold during the event with the total auction prices at some events reaching well over $45 million. With every auction being well attended, its robust, secure and free to use internet- based online sales platform also means even when buyers are unable to attend a sale in person they can still effortlessly place winning bids on all lots. Now with close to 50% of all bidding activity hap- pening online Euro Auctions has true global reach. All Euro Auctions staff are hugely knowledgeable, industry experts, and offer a very personal service to all of its consignors and buyers, building a great senses of trust and always striving to go the extra mile. Marketing is key to all sales, with Euro Auctions communicat- ing to a huge global database by way of pre sale collateral and electronic communications. Pre planning and cata- loguing for each sale, along with all the other administrative and support services are a mammoth logistical task. Ensuring that all reach the sale and then after the hammer are shipped to the new owners is also a demanding, time- consuming task, but one that has to be and is done absolutely right, every time a task Euro Auctions excels at. Euro Auctions today and moving forward With its unique position and viewpoint of the global market- place, Euro Auctions is the perfect economic barometer for the sector as intelligence gathered at each sale helps provide a unique perspective on what is happening across a number of industry sectors and countries. Retaining its ‘can do’ culture; today, Euro Auctions remains a family run busi- ness employing over 300 staff worldwide from over 20 nationalities, speaking over 30 languages. Working with over 6,000 consignors, Euro Auctions currently sells over 70,000 lots a year, valued at almost US$450m; regularly reaches out to over 150,000 interested individuals in over 95 countries; attract over 30,000 bidders; and ultimately sell to over 10,000 individual buyers each year – and these impres- sive numbers continue to grow, helping ensure Euro Auctions remains the local global auctioneers. For more information on the upcoming auctions operated by Euro Auctions in Dubai, United Kingdom, Spain, Germany, Australia or in the USA under the recent- ly acquired Yoder & Frey brand, please visit www.euroauctions.com or contact Euro Auctions on +44 (0) 2882 898262 or the Dubai Office on +971 488 46 880.
// construction business news me // July 2017 82 Managing director Franz von Redwitz says MAN Truck & Bus Middle East is placing investment and safety at the centre of its regional strategy The direct approach M AN Truck & Bus Middle East has become one of the fastest-growing commercial vehicles brands in the Middle East by offering its robust, reliable, high-quality products and dedication to improving driver and road safety. Managing director Franz von Redwitz says the regional representative of MAN Truck & Bus AG is focused on the Middle East market with direct invest- ment in new facilities demonstrating a long-term commitment to expansion across the region. “We are fully commit- ted to continuing to offer a full range of services and products that demonstrate the very best of German engineering and proven safety and comfort,” he comments. “We want to invest not only in products but also place investment into our network and expand our loca- tions. We are investing in the region.” A new and specially-designed region- al office located within Dubai’s Jebel Ali Free Zone (JAFZA) opened recently and unites the company’s new sales and training teams with its successful outlet for used commercial vehicles, MAN TopUsed Center, for the first time. “Moving to the new location in Jebel Ali means all our teams are now closely linked with our TopUsed team,” von Redwitz explains. “This initiative brings the entire operation together in order to provide the full range of services in one place and sufficiently support our import- ers and users across the Middle East.” Franz von Redwitz adds that the commercial vehicle manufacturer's fully-owned building has been de- signed in-line with its globally recog- nised corporate identity and includes a purpose-built training facility that will enhance its ongoing commitment to high levels of service and professional- ism which exceed customer expecta- tions. Customers will also be able to get valuable insight into the industry-lead- ing technology and safety features of its newest vehicles which are showcased at the site. Safety campaigner MAN Truck & Bus Middle East has emerged as one of the region’s hardest working road safety campaigners. 2016 // Markets Power facts • Dealer network covers 14 countries in region • Range includes TGL, TGM and TGS WW • MAN CLA Evolution built for region • Tireless safety campaigner has worked with Abu Dhabi Police
construction business news me // July 2017 // 83 saw the company host the inaugural Road Safety Event for Commercial Vehicles event in collaboration with the local government and safety campaign organisation RoadSafetyUAE. The event brought together representatives from both the public and private sector to examine how heavy trucks and com- mercial vehicle drivers and owners can become safer and more respon- sible road users. It also highlighted the various road safety initiatives and programmes being carried out in the UAE, as well as MAN Truck & Bus Middle East’s own advice and insight into making (its own and others’) heavy vehicles safer. One of MAN’s most significant contri- butions to road safety – MAN ProfiDrive – featured high on the agenda too. The qualified training system that focuses on the needs of the driver while also taking into account of the needs of business owners. Held across 67 coun- tries world-wide, drivers, fleet manag- ers, vehicle transfer personnel, driving instructors and specialists annually take part on MAN’s range of training courses that combine theoretical and practical exercises that can make every-day driv- ing safer and more economic. “You can't always control outside factors, but you can control how safely your fleet operates. ProfiDrive is designed to improve driver knowledge and skills and promote rational driving behaviour based on safety regulations,” he comments. “The courses are care- fully tailored to ensure drivers are fully trained on how to avoid risks on the road based on a cautious and safe driv- ing style, and seek to guide them on the correct way to respond to critical driving situations.” The company has worked tirelessly for years in the Middle East, to not only develop a huge variety of educational initiatives but also introduce new technology that can improve active and passive vehicle safety. These include features such as its Electronic Stability Program (ESP) that prevents accidents caused by overturn- ing or straying from the lane, its Anti- Spin Regulator (ASR) to aid controlled braking, and the Electronic Damping Control (EDC) system which optimises safety and handling. A multimedia campaign promoting the safety benefits to fleets of using genuine parts, visiting authorised workshops, the ProfiDrive training programme and telematics is also currently in full swing. He reveals that the company is planning on further safety events in Dubai in the latter half of 2017. “Improving road safety is one of our highest priorities at MAN and we have many products available today in terms of technology solutions and driver training support which have been developed after many years of research based on various accident reports,” explains von Redwitz. Improving Uptimes Understanding there is an appetite from fleets in the region to reduce operation- al costs and improve vehicle uptimes, the company has also added MAN Genuine Parts ecoline remanufactured parts to its line-up as well as extending its existing warranty for MAN Service and MAN Genuine Parts to two years. “The extended warranty applies to all repairs carried out in MAN service centres from 2017 onwards, including any MAN Genuine Parts, MAN Genuine Parts ecoline and MAN Genuine Ac- cessories installed as part of the repair work. In addition, the warranty covers any service work connected with the fitting of spare parts,” he explains. The company is also marketing its MAN CLA Evolution to fleets in the re- gion. A truck that promises “reliability, ruggedness and long service life” but also easy handling and maintenance, the CLA Evolution is built to suit the requirements of Middle Eastern fleets. Since being introduced to the market, the series has been delivered to a wide range of international customers. “We’ve recognised that there is more focus on the cost aspects in the trans- port sector than ever before. Thanks to its minimal use of electronics the series is robust and reliable, as well as being easy to maintain. The combination of durable and easily maintained technol- ogy is guaranteed when using the MAN CLA Evolution, even in countries with less developed service infrastructure.”
// construction business news me // July 2017 84 // Save the date Mark your calendar Save the date Cityscape Global Dubai International Convention and Exhibition Centre, UAE Firmly established as the largest and the most influential real estate exhibition in the Middle East, Cityscape Global provides real estate businesses with a once-a-year opportunity to network with leading institutional investors, real estate developers, government authori- ties, private and more. The Big 5 Kuwait 2017 Kuwait International Fairground Bringing together over 5,000 construc- tion professionals, the Big 5 Kuwait is the biggest building and construction event in the region. The event creates the perfect environment for manufac- turers and distributors of construction goods & services to showcase their products, network and do business with Kuwait’s biggest buyers in a pro- fessional environment. The Big 5 Dubai International Convention and Exhibition Centre, UAE The Big 5 in Dubai in 2016 was the largest edition to date which, attract- ing 78,579 participants from across the globe, a 6.8 percent increase year on year. The Big 5 attracted more of the right key buyers than ever before, meaning more opportunities to pro- mote your brand and sell construction products. The Big 5 Outdoor Design & Build Show Dubai International Convention and Exhibition Centre, UAE The Big 5 Outdoor Design & Build Show is an established trade show for profes- sionals specialising in urban development and infrastructure. The exhibition will focus on urban and green open spaces, in- cluding parks, healthcare and educational establishments, transportation facilities and major residential projects. UK Construction Week 2017 Birmingham NEC UK Construction Week is the UK's largest construction trade event. Tak- ing place at the Birmingham NEC from 10 – 12 October 2017 the event unites over 650 exhibitors with an audience of over 30,000 trade visitors. BICES China China International Exhibition Center Shunyi New Hall, Beijing Beijing International Construction Ma- chinery Exhibition & Seminar (BICES 2017) is the leading exhibition in the fields of construction machinery, building material machinery, mining machinery and commercial vehicles. The BICES show has been going strong for 20 years and is held every 2 years. September September november september October september 11-13 25-27 26-29 25-27 10-12 20-23
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// construction business news me // July 2017 86 // Editor's pick Saudi Arabia still the biggest and most important market in the region KSA aims to jumpstart sluggish economy Saudi Arabia has a pipeline of over $250bn worth of projects under devel- opment that have not yet seen their main construction contracts awarded, analysts says. Unawarded projects account for about 39 percent of the GCC total, confirming the kingdom’s status as the region’s biggest projects market, ac- cording to Saudi Arabia 2017: Deliver- ing Vision 2030, a new report from business intelligence service MEED At nearly $82bn worth of projects, the kingdom’s energy sector has the biggest pipeline of unawarded project contracts, accounting for about 33 percent of the national total. The construction sector is the second big- gest segment at 29 percent with the transport sector third at 27 percent. Together, power, construction and transport account for about $225bn of unplaced contracts, almost 89 percent of the total value of contracts in the kingdom that are at the pre-execution stage. After a year of uncertainty in 2016 as Riyadh formulated its response to lower oil prices, the 225-page report says that 2017 will be the year Saudi Arabia starts to deliver on its prom- ises. Having drawn up a blueprint for economic transformation in its Vision 2030 document, Riyadh is now setting about implementing those reforms in order to reposition the country for the low oil price era. Private sector participation One of the first major steps taken has been to establish the National Centre for Privatisation to plan and oversee the procurement of public- private partnerships (PPPs) and other private sector initiatives. A host of state bodies are now being prepared for part privatisation. Four PPPs have already been award- ed this year to develop airport projects at Yanbu, Taif, Qassim and Hail. Saudi Arabia wants to privatise the opera- tions of all airports by 2020. Advisers have also been enlisted to develop plans to engage private investors in other sectors such as healthcare. The Ministry of Health is currently seeking advisers to help it draft a framework to build about 3,000 mega and primary medical centres with the participation of the private sector. Saudi Arabia 2017: Delivering Vision 2030 by MEED identifies new and emerging opportunities for investors and companies in the Middle East’s biggest market. It also highlights the challenges that companies need to be aware of in the kingdom. Creating a successful partnership between private sector investors and the government will be the critical factor in achieving the targets set out in the Vision and accompanying National Transformation Programme, says the report. “This report confirms that, despite the challenges we have seen over the past two years as a result of the fall in oil prices, Saudi Arabia continues to be the biggest and most important market in the region,” says MEED Editorial Director Richard Thompson. “And anybody serious about growing their business in the region needs to understand the fundamental changes taking place in the kingdom,” says Thompson. “In particular, it is vital to understand how Riyadh will implement its plans to increase private sector participation in the implementa- tion of its strategic plans,” he adds. 2017 has also seen the major progress on Saudi Arabia’s ambitious renewable energy programme. Under the National Transformation Pro- gramme, the kingdom is targeting 3.45 GW of installed capacity by 2020. In early February, the Ministry of Energy, Industry & Mineral Resources announced it was establishing the Re- newable Energy Project Development Office (Repdo) to head the National Renewable Energy Programme (NREP). The same month, Repdo issued prequalification documents for the first 700MW of solar schemes. Anybody serious about growing their business in the region needs to understand the fundamental changes taking place in the kingdom”
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