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THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS OCTOBER 2016 THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS Local construction industry's finest talent celebrated at Doha ceremony The Road to 2020: Challenges and opportunities ahead of the big event In Person: Mark Ainger, Qatar country director, Faithful+Gould Recruitment: Taylor Sterling on the situation in the UAE JUNE 2017 We design.. we construct.. we build.. Kingdom of Saudi Arabia, PO Box 65697 Riyadh 11566 Tel: +966 11 293 1193 Fax: +966 11 293 1170 www.albawani.net Classified Class 1 ISO 9001

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U A E’ s C ho ic e 2016 STOP THE BUILD-UP OF DIRT EFFORTLESSLY REMOVES STUBBORN DIRT For more Information, Please visit www.karcher.ae or email us at customercare@ae.kaercher.com HD HDS Kärcher offers tough machines for tough jobs. The hot and cold water high-pressure cleaners can remove even the most stubborn dirt deposits of any kind, including dust, dyes and even concrete. With high pressure, facades, floors and machines can be cleaned quickly and effectively.

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construction business news me // June 2017 // 3 Editor’s note News Appointments Contracts Comment Deloitte on Hospitality Comment Taylor Sterling on Recruitment In Person Interview with Mark Ainger – Faithful+Gould Cover Story Construction Innovation Awards Qatar 2017 8 10 18 20 22 24 26 30 // contents June 2017 // Issue #28 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 // June 2017 6 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 The Road to 2020 Construction Innovation Forum 2017 Machinery & Vehicles Volvo on Safety Supplier News Save the Date Editor’s Pick 42 48 54 66 68 70

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construction business news me // June 2017 // 7 Quester, built for the Middle East tough conditions is your best partner to keep your business ahead. Quester is the ideal fit for a drive inside the city thanks to its maneuverability, large visibility, and easy access to its spacious cabin. Quester excels on the essentials in order to maximize your productivity and keep you on the road, mile after mile. Read more about UD products & UD Japanese heritage at udtrucks.com

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// construction business news me // June 2017 8 // Editor's note The Pride of Qatar C onstruction activity in Qatar remains robust, despite some challenges, and the country is forging ahead with some incred- ibly exciting plans with just over five years to go before the first ball is kicked at the 2022 FIFA World Cup. The list of world class projects recently completed or under construction is long and varied. To name just a few they include the hugely ambitious Doha Metro project; the $45bn Lusail Real Estate development which will eventually be home to half a mil- lion people; The expansion of Hamad Inter- national Airport to more than 65 million passengers. And let’s not forget all the venues and infrastructure related to the World Cup, the greatest sporting show on earth. Qatar is expected to welcome 1 million visitors dur- ing the tournament which will require huge investments in infrastructure, hotels and other projects. Last month’s Construction Innovation Awards Qatar 2017 demonstrated that there is much to celebrate about Qatar’s construc- tion scene right now. Doha Festival City, the country’s latest mega-project, emerged as the big winner at the awards which were pre- sented at a glittering ceremony at the Grand Hyatt hotel Doha to celebrate the achieve- ments of the construction industry’s finest. His Excellency Muhammed Bin Ahmad bin Tower Al Kuwari – Vice Chairman of Qatar Chamber, was on hand to present all of the awards alongside Sheikh Khaled bin Nasser, Chairman of KBN Group. Both gentlemen were presented with special awards in recog- nition of their great contributions to busi- ness in Qatar. BNC Publishing and Construction Busi- ness News Middle East magazine would like to thank everyone that made the construction Innovation Awards a big success, especially its allies, Cimolai Rimond, Multiplex, Shaikhani Group, Hill International, Raimondi Cranes, Al Shafar United and Faithful + Gould. editor’s note Jason o'Connell Editor

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construction business news me // June 2017 // 9

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// construction business news me // June 2017 10 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 Inauguration Update // H.H. the Emir Sheikh Tamim bin Hamad Al Thani of Qatar inaugurated the first host venue for the 2022 FIFA World in front of 40,000 football fans last month, five years before the tournament starts. The final of Qatar’s biggest domestic football trophy, the Emir Cup, kicked off shortly afterwards at the stadium which was renovated by a joint venture of Midmac Con- tracting and Six Construct. Work on the stadium, which will host matches up to the quarter final stage of the competition, included the installation of revolu- tionary cooling technol- ogy promised during Qatar’s successful bid, to keep the pitch at 20°C and the stands at 23°C while using 40 per- cent less energy than tradi- tional cooling methods. H.E. Hassan Al Thawadi, Secretary General of the Supreme Committee for De- livery & Legacy (SC), the organisation responsible for delivering the infrastructure required to host the 2022 FIFA World Cup Qatar, said at the launch: “The comple- tion of our first stadium more than five years before the Qatar World Cup begins is an important milestone that reflects our determina- tion to deliver a tournament the entire Arab world is proud to be a part of. “As we promised in our bid, our innovative stadi- ums offer an unrivalled ex- perience to fans and play- ers alike. I’m proud we can show these off to the world and welcome fans with the hospitality this World Cup will be remembered for.” Other new features at the stadium include the installa- tion of a larger roof over the entire spectator area, with an intricate net of German and Italian-made steel ten- sion cables weighing 4,000 tonnes holding 92 panels in place. The stadium will also be the first FIFA World Cup venue and the first sta- dium in the region to be lit by LED lighting, which is both more sustainable and more versatile than traditional lighting. Qatar unveils first World Cup stadium Renovated 40,000 seat Khalifa Stadium opens five years before a ball is kicked

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construction business news me // June 2017 // 11 New project launch Dubai has unveiled the lat- est addition to its grow- ing portfolio of world class hospitality offerings. Vice President and Prime Minister of the UAE and Ruler of Dubai His High- ness Sheikh Mohammed bin Rashid Al Maktoum visited Dubai Holding where he was briefed by chairman Abdulla Al Habbei on ‘Marsa Al Arab’. The megaproject will break ground in June 2017 and will completed by late 2020 at a total cost of AED 6.3bn ($1.7bn), according to a statement on Emirates News Agency (WAM). It comprises of two islands, one on each side of Burj Al Arab, that will add a total of 2.2 km of beach frontage. One island will be dedicated to entertainment and fam- ily tourism, while the other comprises an exclusive luxury resort. His Excellency Abdulla Al Habbai, chairman of Dubai Dubai launches $1.7bn Marsa Al Arab Holding said: “Dubai has achieved a global reputa- tion for unique offerings and unprecedented achieve- ments. This was feasible through proper planning and accurate execution of such projects, complement- ed by in-depth knowledge of the local market’s needs and capabilities. He added: “We will con- tinue to build on our past success with a focus on the future. Madinat Jumeirah’s visitor footfall and statistics demonstrate its tremendous success over the years, mak- ing it the pivot point of our latest development.” Through this resort, Jumei- rah Group will introduce new leisure concepts and services to complement its existing family entertainment offer. A high end shopping mall stretching across 20,000 sq. m will be built on the site of the current Wild Wadi Water Park which will move to a new location on the is- land and be twice the size of the current water park. There will also be a Ma- rine Park with a marine life ‘edutainment’ centre and a dedicated theatre with a ca- pacity of 1,700 seats that will become home to the world- renowned show Cirque du Soleil for the first time in the Middle East. Located on the left of Burj Al Arab, a private island will have 140 luxury vil- las operated by Jumeirah Group as well as a bou- tique hotel equipped with world-class facilities. Overall, Dubai Holding will add 2,400 hotel rooms to Jumeirah Group’s portfo- lio, bringing its total offer- ing to 8,428 rooms. There will be 400 new F&B outlets throughout the destination. Real Estate Meraas has sold a pair of penthouses at its soon to be delivered Bulgari Residences project in Dubai for a cool AED 110mn ($30mn). A GCC national splashed AED 60mn on a 14,346-square-foot unit, shattering a record set in 2014 for a penthouse which sold for AED 42mn, accord- ing to Reidin’s statistics. Meraas pockets record $16.3mn for Bulgari penthouse The second 12,122-square- foot penthouse also eas- ily surpassed the previous record by selling for AED 50mn to a European buyer, Meraas said in a statement, adding that all eight pent- houses and over 60 percent of the 188 units at Bulgari Residences have been sold with handover due to com- mence early next year.

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// NEWS // construction business news me // June 2017 12 Contract Source: Ventures Onsite Dubai-based contractor Arabtec has won a AED 1.46bn ($397mn) contract to build a 300 metre tower alongside Sheikh Zayed Road by 2020. Arabtec wins $400mn Dubai tower contract Developed by Wasl As- set Management (Wasl), the 63-storey mixed use tower will house a Mandarin Ori- ental hotel and serviced resi- dences, as well as a series of vertical gardens designed by Amsterdam-based UN Studio. Hamish Tyrwhitt, chief exec- utive of Arabtec Holding, said the contract “has been award- ed based on our track record of delivering world-class mixed-used developments, adding to Arabtec Construc- tion’s existing portfolio of over 22 projects we are cur- rently building in the UAE”. Arabtec is in the midst of a restructuring that has in- volved bringing in new senior management to orchestrate a turnaround in fortunes. The reorganisation combined with an upturn in the market has improved Arabtec’s pros- pects, Tyrwhitt says. “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 successful and sustain- able future.” $85.6bn expected value of awards 7% Y-o-Y rise in value $40.5bn to be awarded in the UAE $16.7bn awarded in Qatar GCC contract forecast in 2017 // In Numbers Ground breaking Dubai Civil Engineering has broken ground on a $870mn hospitality project barely a month after it was given the greenlight by joint develop- ers Schon Properties and Al Hamad Group. Located in Dubai Invest- ments Park, iSuites will consist of 2,550 hotel apart- Hospitality mega project breaks ground 25 million visitors that are expected to descend on Expo 2020 over the course of its six-month duration. The hotel apartments will be managed by international ho- tel operators to offer greater comfort to visitors while a portion of the iSuites invento- ry will be offered to investors. beach and a lagoon spread over 5 acres. The project is well posi- tioned to serve the estimated ment suites, 52 restaurants, outdoor cafes and a 125,000 square feet shopping mall surrounded by a manmade

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construction business news me // June 2017 // 13 Analysis Infrastructure Construction disputes resolved quicker Ongoing liquidity issues within the Middle East con- struction market has seen an increase in the number of claims submitted however the industry is resolving them more swiftly. On a less positive note, ba- sic contract issues remain the root cause of many of the dis- putes that materialize across the region, according to the latest research from Arcadis. The ‘2017 Middle East Con- struction Disputes Report’ is an annual study that ex- amines the most common causes of dispute on con- struction projects, as well as the average duration and value of disputes, and the method of resolution most commonly deployed. Over the last year, the av- erage length of time needed to resolve a dispute in the Middle East fell to just 13.7 months. This is 10 percent quicker than in the two previ- ous years, and is less than the global average. Similarly, the average value of a construc- tion dispute also decreased, dropping from$82m in 2015 to $56m in 2016. Rob Nelson-Williams, Re- LACASA Architects & Engineer- ing Consultants has added In- frastructure design and supervi- sion to its list of offered services in its Dubai Headquarters. Known for its one-stop-shop approach to architectural and engineering consulting, the firm’s inclusion of Infrastruc- ture comes as a response to the increasing number of Master- planning projects being under- taken in 2017. The addition of Infrastructure services will add fifteen new specialised engineers to LACA- SA’s Dubai team over the next three months, with further ex- pansion planned for the future. Since its establishment in 2006, LACASA has always adapted to the market’s re- quirements and conditions rapidly, the company said. Those responses have includ- ed exploring new emerging markets, appointing diverse tal- ents, and reforming corporate structures in order to provide better services and higher qual- ity designs for its clients. “We have always strived to provide our clients with the most efficient processes to help them maximize efficiency as well as quality. We are op- timistic about our new service offering, as it will allow us to provide holistic urban and Mas- ter-planning design solutions to our clients,” said Emad Jaber, Managing Partner. gional Head of Contract So- lutions, Arcadis Middle East said: “This trend towards swifter resolution is particu- larly welcome as it helps to improve liquidity across the wider supply chain. In a tight market, we’re seeing an increase in the number of claims submitted as contrac- tors take a tougher approach to entitlements to help pro- tect their cash flow position.” A failure to properly admin- ister the terms of the contract remained the most common cause of disputes on con- struction projects in 2016, closely followed by poorly drafted, incomplete, and un- substantiated claims. This once again underlines the need to get the basics right, and the importance of sea- soned technical and commer- cial advice when it comes to contract and claims strategy. Nelson-Williams said: “A sharper focus on removing ambiguity from within a con- tract at the very outset, and better training on how to prepare a robust and credible claim are two relatively sim- ple steps that would make a significant difference.” Parsons has recently been awarded a contract for comprehensive multidis- ciplinary design and con- struction supervision of a AED 4bn ($1.08bn) project being developed by MAG Property Development in Meydan City, Dubai. District 7 is a mixed-use community within the Meydan Master Devel- opment, comprising 35 residential buildings, a clubhouse, a retail zone, office space, and public green areas. The architecture and buildings scope includes residential buildings, townhouses, large villas, a sales center, and several utility buildings. In addition to the con- cept and detailed design of all of the buildings, Parsons will also com- plete the master plan- ning, infrastructure, and landscape architecture for the entire site. “This is our first buildings contract with MAG Prop- erty Development, and we are excited to work with them,” said Gary Ad- ams, Parsons Group Presi- dent. “We look forward to bringing our buildings and mixed-use projects exper- tise to this development.” Parsons contracted for $1bn District 7 LACASA Dubai adds new infrastructure services

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// NEWS // construction business news me // June 2017 14 Market outlook Qatar sees rapid growth Top 5 Web Stories Qatar will be among the top five fast- est-growing construction markets glob- ally over the next five years, according to BMI Research. The Gulf country ranks third in the list which is topped by Myanmar with Ethiopia second and Pakistan and the Philippines in fourth and fifth place respectively. All five will record dou- ble-digit growth as their governments work to tackle significant infrastructure needs, BMI Research said in its outlook for the global construction industry. Qatar’s growth outperformance over the next five years will be driven primar- ily by substantial public investment into its transport and commercial construc- tion building sectors as the market pre- pares to host the FIFA 2022 World Cup. The government aims to spend QAR 198.4bn ($54.37bn) in 2017 and gen- erate some QAR 170.1bn in revenue, opening a fiscal deficit of QAR 28.3bn that will be covered by issuing debt in the international financial markets. Of this, 21 percent has been allocated to the transport sector, as the antici- Qatar third fastest growing construction market Omniyat’s Zaha Hadid-designed project ‘The Opus’ nears completion in Business Bay Nakheel awards $408mn Palm Gateway contract Doha Festival City wins big at Qatar awards Dubai unveils $1.7bn Marsa Al Arab mega project Kuwait awards $46bn worth of contracts in Q1 1 2 3 4 5 www.cbnme.com pated influx of visitors places strain on the existing network; and 47 percent for projects related to the hosting of the major sporting event, including stadia and ancillary infrastructure. Opportunities stemming from the event will ensure Qatar remains fertile ground for international investors, with an acceleration of tender announce- ments and contract opportunities ex- pected in the run up to 2022. BMI Research is forecasting industry expan- sion in Qatar of 12.1 percent in real terms between 2017 and 2021. // Snapshot

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construction business news me // June 2017 // 15 Engineering A bridge linking a pair of ad- jacent Emaar Properties sky- scrapers in Downtown Dubai has been hoisted into place. At a height of over 220 me- tres above ground, the 85-me- tre-long Sky Bridge, will join the Address Sky View hotel with the Address Residences Sky View, designed by Burj Khalifa architect Skidmore, Owings and Merrill. The three storey bridge will feature eight duplexes topped by a 70-metre-long infinity pool. It was made us- Sky Bridge lifted into place ing 4,500 tonnes of steel, and was lifted into position using Strand Jacking Technology, customised for the project. A team of global experts from five different entities worked on the project that was completed in around 365 days by over 300 profes- sionals and skilled workers. The bridge addressed several design challenges given the extensive loads of steel and concrete, as well as the loads related to the infinity pool, pool deck and façade. To address the construc- tion challenges, the main body of the bridge was di- vided into five elements, each weighing over 400 tonnes each. The fifth ele- ment is the MEGA truss in the middle that has a total weight of over 1,500 tonnes. High capacity cranes, not commonly used in the re- gion, were deployed to lift the huge weights. Special high-capacity hydraulic jacks were also imported from Switzerland. David L. Richter has resigned as Chief Ex- ecutive Officer of Hill International, ending a 22-year career with the company. Richter, who became CEO in 2014, initiated and led the effort to make Hill a public company in 2006 and his final act was to oversee the sale of Hill’s construction claims group, leaving Hill as a pure play project management company. “The sale of the company’s Con- struction Claims Group is critical to the future of Hill. It was ex- tremely important for me and the company to see this transaction through,” said Richter. “This sale will significantly improve Hill’s financial position and create opportunities for growth that were not possible prior to the sale. I am extremely proud of the team we have built at Hill and I am honored to have served as CEO of such an outstanding world-class organization.” Paul Evans, a Director on Hill’s Board since August 2016, will as- sume the role of Interim Chief Executive Officer and Director until a permanent replacement is appointed. Hill International chief David L. Richter steps down // Bitesize news Damac Properties managing director Ziad El Chaar has resigned his position and is leaving the company he joined in 2005. Greenline Interiors (GLI) wins fitout contracts worth a combined AED 130mn ($35.4mn) for hotels in Business Bay and Deira. Emaar earnings jump by 15 percent to AED 1.384bn ($377mn) in the first quarter of the year as property sales took off. Engineering Contracting Company LLC (ECC) completes milestone as it signs off on the dusitD2 Kenz Hotel in Barsha Heights, Dubai.

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// NEWS // construction business news me // June 2017 16 Progress update His Highness Sheikh Mo- hammed bin Rashid Al Mak- toum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has re- viewed construction prog- ress on what will become the tallest building in the world when complete. Sheikh Mohammed was briefed on the milestones already achieved on The Tower at Dubai Creek Harbour, a collaboration between Emaar Proper- ties and Dubai Holding, including completion of foundation work and the start of work on the an- chorages for the stay cables that are an integral part of the building’s design and structural support. More than 145 barrette piles have been laid to depths of over 72 metres to secure the super-tall struc- ture. His Highness witnessed the trimming of the barrette piles and the preparation of the reinforcement couplers, ready to receive the first sub structure slab. The barrette piles used for Dubai ruler reviews progress of The Tower the foundation have been tested to a world record test load of 36,000 tonnes. The work was undertaken by foundation specialist, Sole- tanche Bachy. A cathodic protection system, similar to that used on the founda- tions of Burj Khalifa, is being completed to protect it from any corrosion risk. HE Abdulla Al Habbai, chairman of Dubai Hold- ing said: “The Tower at Dubai Creek Harbour re- flects the vision of His High- ness Sheikh Mohammed bin Rashid Al Maktoum to establish Dubai as a global hub for business and leisure that attracts visitors from across the world. With this iconic development, Dubai is once again demonstrating its ability to develop first-of- its-kind projects that surprise the world.” Designed by Spanish/Swiss architect and engineer San- tiago Calatrava Valls, The Tower will feature several observation decks that offer 360 degree views of the city and beyond. Bee’ah and Masdar have formed a joint venture to develop waste-to- energy plants across the UAE. Emirates Waste to Energy Company (EWEC) will build a plant in Sharjah to incinerate 300,000 tonnes of munici- pal solid waste per year and produce 30 megawatts (MW) of electricity. Upon completion of the new facility, Sharjah will become the first city in the Middle East to divert 100 percent of waste from landfill. His Excellency Dr Thani bin Ahmed Al Zeyoudi, Minister of Climate Change and Environment for the United Arab Emirates, attended the launch of the project on Thursday and witnessed the signing of the waste supply agreement (WSA) and power purchasing agree- ment (PPA) by Bee’ah, Masdar and Sharjah Electricity and Water Authority (SEWA) officials. Bee’ah and Masdar said EWEC’s first project would leverage the strengths of both companies to pave the way for further waste-to-energy facilities in the UAE and the wider region, delivering commercial solu- tions to meet the challenge of solid waste disposal and demand for clean energy. H.E. Dr. Thani bin Ahmed Al Zey- oudi, UAE Minister of Climate Change and Environment, said: “The Waste- to-Energy joint venture in Sharjah represents an important step in our endeavor towards sustainability and a bold and unconventional solution to address the increasing development challenges in a sustainable way to achieve the objectives of the National Agenda for UAE Vision 2021.” French company CNIM is the lead contractor on the project and will design, build and operate the plant which is to be located within the site of Bee’ah’s existing Waste Manage- ment Center Centre. Bee’ah and Masdar launch waste to energy plant

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construction business news me // June 2017 // 17 Materials A study commissioned by the Steel Alliance against Coun- terfeiting (SAAC) has revealed that more than half the indus- try (53 percent) has reported an incidence of, what is be- lieved to be, counterfeit steel products at some point in day-to-day operations. SAAC, which was formed in 2015 and is made up of the world’s 18 leading suppliers of steel products, is working to drive awareness and identify solu- tions to the growing problem of fake steel in the region. Market studies indicate that the total volume of tubular products in the MENA mar- ket in 2016 reached 2,967,176 tons. The research revealed that 79 percent of construc- tion industry professionals in the Gulf are in favour of tighter controls over the im- port of steel products from certain markets. Government policies, including the UAE Fire and Life Safety Code, prescribe a very high stan- dard for materials to be used in buildings and installations. Insights and feedback from 70 contractors, consultants and product suppliers from across the GCC were used for the study, which was re- leased at a meeting of indus- try professionals. Andrey Burtsev, Commer- cial Director for Middle East, Africa and Asia markets, Inter- pipe, said: “Cities in the GCC region are shining examples of technology adoption and groundbreaking architectural feats. There is absolutely no place for any uncertainty or spurious practices that com- promise their infrastructure. As the survey indicates, coun- terfeit steel products con- tinue to pose significant risks across sectors and in critical installations like oil rigs, pipe- lines, oil refineries and so on. Through this study, we are supporting key governmental initiatives and procedures that protect society and sustain economic development.” Bertrand de Rotalier, Man- aging Director, Middle East, Vallourec, said: “We cannot emphasize enough the dan- gers of counterfeit material usage in our sector. This is the reason why members of SAAC are working together to apply preventive measures to fight the use of counterfeit tubular products.” Steel industry blighted by counterfeiting Fast. Sustainable. Beautiful. Do you have projects that should deliver high-quality, sustainable buildings with great outlooks, in a short time- frame? If yes, precast concrete offers a smart solution. It is a fast and raw material efficient way to build any type of buildings safely, with unbeatable layout flexibility and long building lifetime. Elematic offers everything you’ll need to start and run a precast concrete factory, from concept design to lifetime support and beyond. And always the best match to your needs. PRECAST Find out more at www.elematic.com/precast-concrete Elematic www.elematic.com sales@elematic.com

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// construction business news me // June 2017 18 // Appointments Arabtec Holding has appointed a new chief executive officer of Arabtec Construction as part of the company’s ongoing re- structuring. Boyd Merrett joins Arabtec from CIMIC Group where he was the general man- ager for Leighton Asia in Hong Kong, responsible for winning and delivering major building, MEP and infrastructure proj- ects worth over $7bn. He has expertise across an array of specialisms in the industry with more than 24 years of experi- ence in international construc- tion, spanning the Middle East, Asia, Europe and Africa. DXB Entertainments CEO Raed Kajoor Al Nuaimi has been ap- pointed to lead a new group that will manage multi-billion dollar development projects across Dubai Holding and Meraas Holding. Al Nuaimi will remain as CEO of DXB Enter- tainments, the Dubai Financial Market-listed company behind Dubai Parks and Resorts, until a new CEO is appointed. He will thereafter continue as a senior executive with the company, in the role of Managing Director and executive member of the Board of Directors. DXB En- tertainments will announce the appointment of a new CEO in due course. Alvaro Pacini has assumed the role of president for Doosan Bobcat Europe, Middle East & Africa (EMEA). He will be responsible for the company’s Doosan, Bobcat, Geith and Portable Power brands in the region. Pacini joined Doosan Bobcat in 2011 as the vice president of sourcing in EMEA before taking on additional responsibilities and leading total quality management in 2013 and then opera- tions in 2015. Doosan Bobcat has been expanding its product portfolio and growing its dealer chan- nels across its heavy, compact and portable power equipment brands. Nakheel has announced organisational changes, with a newly-created department and new senior management appointments, as the company en- ters the next phase in its growth. Fawzi Al Shehhi becomes managing director, Nakheel Community Planning and Management – a new department that combines the company’s existing Community Management and Development Control and Ur- ban Planning functions. Nakheel has also appoint- ed Omar Khoory as managing director, Nakheel Malls, to lead the strategy, operations, leasing and planning for company’s existing and upcoming re- tail developments. International architecture and planning group, RMJM, has appointed Raymond Park as its new chief executive officer, based in the company’s headquarters in d3, Dubai Design District. Park takes over from current CEO, Harry Downie, who is retiring at the end of May. Ray- mond has a wealth of experience in the Middle East construction industry which has seen him gain a first class reputation that has encompassed periods with de- sign consultants, real estate developers and project managers. Arabtec Construction appoints new CEO Meraas and Dubai Holding form JV Doosan Bobcat names new regional president Nakheel draws on Emirati talent RMJM appoints Raymond Park as CEO Movers and shakers in the industry Appointments

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// construction business news me // June 2017 20 // Contracts Contracts Bloom Properties has awarded General Construction Company the contract for the main works of Stella Maris, its wa- ter-front development in Dubai. Taking shape at the southern end of Dubai Ma- rina, the 52 storey luxury development will deliver 313 high-end residences in total, ranging from one- to three- bed- room units, as well as four-bedroom du- plex apartments and penthouses. Dubai Properties (DP) has handed SEIDCO General Contracting the AED 200mn ($54.5mn) main contract for its Bellevue Towers residen- tial tower in Burj Khalifa District. By the second quarter of 2019 work should be completed on the twin towers which will offer a total of 319 units. Located close to the waterfront of Marasi Business Bay, Bellevue Towers has a sustain- able design featuring a contemporary façade with balconies and terraces for all apartments. Aldar Properties has handed Trojan General Contracting a AED 1.7bn ($462mn) main contract for the first three precincts of its flagship devel- opment on Yas Island – Yas Acres. The contractor will mobilise on site immediately as it works on all in- frastructure, 652 villas and town- houses, the golf course, golf club house, mosque, retail and commu- nity clubs. The main package will be delivered over a period of 32 months with the first homes due to be handed over at the end of 2019. Dubai’s Roads and Transport Authority (RTA) has awarded a AED 375mn ($102mn) contract to build the tunnels and roads leading to the Jewel of the Creek project. Work will involve construction of roads, subways, and slipways linking the project with the surrounding roads and transport network. Construction of the mixed use project, which sits on the north side of the creek between Al Maktoum Bridge and the Floating Bridge, is set to be complete in the first half of 2019. Nakheel has signed a construction contract worth nearly AED 1.5bn ($408mn) for The Palm Gateway, a three-tower residential, retail and beach club complex at the foot of the world-famous Palm Jumei- rah. The developer has appointed Shapoorji Pallonji Mideast to carry out the work, which will begin in the second quarter of 2017 and take two and a half years to complete. Bloom awards contract for Dubai Marina tower Dubai Properties names contractor for Bellevue Towers Aldar awards $462mn Yas Acres contract RTA awards $100mn Jewel of the Creek roads contract Shapoorji Pallonji wins $408mn Palm Gateway contract

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construction business news me // June 2017 // 21 DAMAC Properties has awarded Proscape with a AED 40mn ($10.9mn) contract for roads and infrastructure works at Vardon cluster within the AKOYA Oxygen develop- ment in Dubai. Home to over 2,000 luxury hotel apartments, the development has a long promenade offering high-end shopping, dining and entertainment. Vista Lux is set alongside the lake and fountains, with views of the golf course and parkland beyond. Turkey’s Yuksel has won a SAR 1.91bn ($508mn) contract to build the infrastruc- ture for the third phase of Riyadh’s Bus Rapid Transit System (BRT). Ar-Riyadh Development Authority (ADA) awarded the deal for the project which will com- plement the Riyadh Metro project when complete in around two years. Yuksel’s scope of work includes 22 km road re- habilitation works, construction of 34 sta- Hill International has been con- tracted to provide project manage- ment services during construction of a new Saadiyat Island resort in Abu Dhabi, UAE. Awarded by the Sheikh Suroor Projects Department on behalf of H.H. Sheikh Suroor Bin Mohammed Al Nahyan, the initial one-year contract has an es- timated value to Hill of approxi- mately AED 7mn ($1.9mn). The resort will feature 293 rooms with a built-up area of approximately 113,000 square metres. Korea’s Heerim Architects and Planners Co has signed a KRW 18.38bn ($16.2mn) design and engineering services contract for a football stadium in Qatar. The deal was awarded by the joint venture (JV) of Qatar’s AlJaber Engineering (JEC) and Turkey’s Tekfen Construction that is building the 40,000 seat stadium in Doha’s Al Thumama neighbourhood. Dubai master developer Nakheel has released a construction ten- der for an 800-room, beachfront resort and water park at Deira Is- lands to be operated by Spanish hospitality group RIU Hotels & Resorts. With an investment value of AED 670mn ($182mn), the re- sort – RIU’s first in the Middle East and one of the biggest in Dubai in terms of hotel rooms – is set for delivery in Q4 2019. DAMAC Properties awards contract worth $10.9mn Yuksel wins $500mn Riyadh transport contract Hill bags $2mn Saadiyat Island hotel contract JV awards $16mn Qatar World Cup stadium design contract Nakheel tenders contract for $180mn Deira Islands resort tions, 1,353 community bus stops and six pedestrian bridges with all civil, mechani- cal and electrical works.

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// construction business news me // June 2017 22 // Comment The forecast for both hotel demand and supply growth remains strong By Dunia Joulani, Manager at Deloitte Financial Advisory within the Travel, Hospitality and Leisure (THL) division in the Real Estate team. Welcome to the GCC E conomic headwinds such as the decline in oil price and currency fluctuations in the US Dollar, geopolitical tension and tightening liquidity are placing pressure on governments in the GCC to prioritise strategic projects. As diversifying the economy and improving the tourism sector comes to the forefront of govern- ment agenda and with two major up- coming events in the region; the 2022 World Cup in Qatar and the 2020 World Expo in Dubai, there is no doubt that hospitality development is a clear prior- ity across the GCC and the forecast for both hotel demand and supply growth remains strong. There are a significant number of hospitality projects under various stages of planning, design and construction in the GCC. According to MEED, there are over 550 projects worth over $55bn that have been announced in the pipeline representing approximately 156,000 rooms (STR estimate). Approximately 50 percent of the planned projects are in the UAE, fol- lowed by 24 percent in KSA, 12 percent in Qatar, 7 percent in Oman, 4 percent in Kuwait and 3 percent in Bahrain. The UAE clearly dominates in terms of the number of projects in the pipeline, made up of 280 projects primarily within Dubai followed by Abu Dhabi, Sharjah and Ras Al Khaimah. KSA has over 130 projects in planning across 16 different cities with the largest concen- tration of planned projects being in Jeddah, Riyadh, Khobar and Mecca. Downward pressure on performance In terms of the performance of the hotel market in the GCC, no two coun- tries, or even cities, are alike. The na- ture of these markets, the performance and drivers of performance within each city are markedly different. Despite the continuous growth in Dubai’s hotel supply, it still achieves the highest average daily rate (ADR) and occupancy compared to any major GCC city with 86.2 percent occupancy and an ADR of $216 recorded for the YTD March 2017. This signifies a slight increase in occupancy from 84 percent YTD 2016, but the rise in occupancy in 2017 has been achieved at the expense of a 6 percent decrease in ADR from $231 representing a decrease in RevPAR of 3.9 percent. Dubai’s leading performance is followed by Abu Dhabi achieving 75 percent occupancy and an ADR of $130 and Sharjah at 84.5 percent occupancy albeit at a much lower ADR of $78 for YTD March 2017. Muscat and Doha have achieved 68.7 percent and 68 percent occupancy and ADRs $181 and $180 YTD March 2017 respectively. The lowest occupancies over this period were recorded in KSA with Al Khobar / Dammam at 49.2 percent followed by 54.2 percent in Jeddah and 57.2 percent in Riyadh. In addition, it indicates a drop from 62.5 percent and 66 percent for Khobar / Dammam and Jeddah respectively for the same period in the previous year. Future outlook - A strong foundation to endure unpredictable market conditions Existing market conditions and the planned growth in supply may cause

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construction business news me // June 2017 // 23 ism sector is growing and demand is steadily increasing, there is a risk that the demand growth is unlikely to be sufficient to support this level of supply growth post the 2022 FIFA World Cup. Tourism in KSA continues to be driven primarily by religious and busi- ness tourism, but there is a strong focus on stimulating the domestic tourism offering to increase the proportion of Saudi nationals spending their leisure time in the Kingdom which is essential because this is a volume market. The outlook for the market is positive as tourism infrastructure is improved and entertainment and leisure offering is de- veloped in line with creation of a dedi- cated authority, the General Authority For Entertainment. This is expected to have an especially positive impact on domestic tourism. Investment into key tourism markets in Oman, including Muscat and Salalah, is helping position Oman as a differen- tiated destination which attracts both GCC and international source markets. A key success factor for various cities will be diversifying their source markets and growing the various market seg- ments (leisure, MICE, business) based on their locational attributes and offer- ings which will help the market endure the ever fluctuating political and eco- nomic market conditions in the region. downward pressure on performance levels across many of the cities in the GCC in the short to medium term as the GCC invests in tourism infrastruc- ture, by improving the diversity of its offering, and by enhancing the support- ing tourism infrastructure, it is building a strong foundation for the future, al- beit at varying levels of progress across the different countries. Both Dubai and Abu Dhabi continue to develop key cultural, leisure and entertainment attractions which are helping positon them as global tourism hubs. For the UAE the future continues to look positive despite downward pressure on performance, until supply growth and demand growth stabilise. Qatar, on the other hand, while investment in the hospitality and tour- Both Dubai and Abu Dhabi continue to develop key cultural, leisure and entertainment attractions which are helping positon them as global tourism hubs” Number of Projects by country RevPAR changed from YTD March 2016 to YTD March 2017 UAE Saudi Arabia Qatar Oman Kuwait - 4% Bahrain - 3% 50% 24% 12% 7% Al Khobar/Dammam 0% -5% -10% -15% -20% -25% -30% -35% Jeddah Riyadh Makkah Manama Medina Doha Central Muscat Abu Dhabi Kuwait Dubai Sharjah+ Source: STR Global

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// construction business news me // June 2017 24 // Comment Marcus Taylor, managing partner at recruitment agency Taylor Sterling, talks about the current state of construction and engineering recruitment. Talking Talent T he biggest challenge facing the construction industry, from a hiring perspective, is getting the right people at the right price point. The cost of living went up at the tail end of 2016 and has remained high, but salaries have in most cases remained con- stant. Companies in need of strong hires are being forced to put this on hold as they experience indus- try-wide delays in projects being awarded, as developers are trying to reduce their own spending. What this has led to is mid-level companies with mid-level talent being awarded an increasing number of con- tracts, rather than the big players who have been able to invest in top level talent. To get the best talent today, companies need to be offering very lucrative packages, or look outside of the GCC to bring new top talent in. This of course comes with its own issues, as foreign hires are lacking in local experience. We recommend finding local, high achieving, mid-management talent and growing them or importing talent from overseas. The market has gone from experience dominated to a younger, more tech savvy, driven workforce. Up until a couple of years ago we saw heavily experienced 45 to 60-year- olds driving the big companies, but now we are seeing more and more 30 to 45-year-olds being hired and being incredibly successful for aspiring companies. Continuing buzz words - Expo2020 and the World Cup - are simply the accelerators, post downturn. It’s so important to be ahead of the curve and to be looking at the long term. Today the UAE, and most of the GCC, is evolving from being an emerging market to a mature one, so talented employees are now choosing to move to this region as a life choice, not just for the salaries. It’s getting easier to import talent from a recruitment per- spective and we are looking at this as an option more and more. As of today, 70 percent of our time is spent placing senior construction professionals – from building to in- frastructure roles. 78 percent of those we placed since the end of last year have not been actively looking for a move. What this tells us is that this drive to create solid, long-term founda- tions has already seen its first wave. If construction companies who haven’t factored this into their development strategy don’t act quickly they will not only face a serious talent shortage, but should expect to be overtaken by those early investors in talent. We are often asked whether com- petition for skilled workers is growing as the construction sector recovers. In short; there are many mid-skilled workers but the top end, where you get your highest quality and most experience, is not big enough to meet demand. That said, global issues like Brexit and the Donald Trump Presi- dency have created a good opportu- nity for us across the GCC to encour- age talent to move here. It’s for the construction industry to capitalise on. Every country has their own plan, whether it be for 2020, 2030 or 2050. Dubai has the most imminent plan for Expo2020, closely followed by Qatar’s 2022 plan for the World Cup. I really can’t stress enough how important it is to have a relationship with a special- ist in talent sourcing that can provide quality personnel and avoid panic hir- ing at the last minute. There are many mid-skilled workers but the top end, where you get your highest quality and most experience, is not big enough to meet demand”

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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.

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// construction business news me // June 2017 26 Mark Ainger, Faithful+Gould’s Qatar Country Director, talks to Construction Business News about the consultant’s ongoing activity in the country and the outlook for the construction industry. Qatar in Focus What are some of the main projects you’re working on in Qatar? Faithful+Gould is currently involved in some of Qatar’s most prestigious proj- ects. We are proud to be programme managers on Doha Oasis, an unprec- edented development offering a high end residential low-rise compound, a retail complex, an exclusive 7 Star high-rise hotel tower and a world class indoor theme park. We are involved in several aspects of the multiple award winning and recently opened Doha Festival City, the largest retail mall in Qatar, and the largest under construction at present in the Middle East. We are also Project Manager for the Shaza Hotel, a 5 *, 4 storey hotel. We are providing cost, commercial and controls to Ashghal on several projects across their building and infrastructure portfolio, express- ways and local roads and drainage, programmes and we are also providing advisory services at a strategic level. What are the key construction market trends in Qatar at the moment? The Qatar market has been con- strained to a degree by the suppressed oil and gas prices on the world mar- ket. Qatar has seized this opportunity to review and prioritise its pipeline and assess timelines for completion to match growth predictions and national development demands. Overall this has brought restrictions to the number and level of awards but we remain hopeful that this period of review will lead to a more robust pipeline in supply of projects developed out of necessity to meet both the Qatar 2030 National Vision and the more short term and immediate demands of the FIFA World Cup 2022. To what extent is the World Cup propping up the market? Overall underlying market growth is // In person

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construction business news me // June 2017 // 27 driven by the Qatar National Vision 2030 and the nation’s development strategy around this. To date this has been supplemented by the National Vision 2011 – 16, shortly to be re- placed by the National Vision 2017-22. A number of requirements within this have been accelerated and flexed to meet the shorter term demands of the Fifa World Cup 2022. The World Cup has added a further degree of imme- diacy to development and has provided focus to accelerate several infrastructure and tournament specific projects. This is where we see the demand rising for companies such as Faithful+Gould, with vast experience and unrivalled expertise in fast tracking projects and a need for us to provide much needed project management services to meet looming deadlines. What are the main challenges facing construction companies in Qatar right now? Cash flow is often noted as a challenge by many parties within the current market. Challenging and at times punitive contract terms often provide challenges, often with risk apportioned to parties that may not be best placed to manage such risk can at times limit innovation and provide restrictions on what could be achieved by closer collaboration and a stronger partnering approach to delivery. Which sectors are providing the best opportunities right now and which sectors are suffering the most? All sectors present opportunities for companies with a demonstrated depth and strength in delivery within the local market in a country with such ambitious development plans as Qatar. One risk that is often noted in the recent market however is a potential oversupply in cer- tain sectors, such as retail and hospital- ity, as a large number of developments commenced in recent years come to Doha Festival City

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// construction business news me // June 2017 28 // In person market simultaneously. A new balance across the market to suit demand will take some time to be achieved to reas- sess underlying market conditions. Infrastructure growth on a local level for roads, expressways, metro and rail systems remains strong although many of the major commissions have been let. National plans around international travel continue unabated and will pro- vide growth for some years to come if predictions prove true. Qatar’s business landscape and com- mercial centres are also fluid which provides challenges to foresee underly- ing market conditions. West Bay remains a business hub yet Msheireb and Lusail continue to develop and come on stream as significant commercial and mixed use residential and retail areas of the future. The Pearl as a residential centre can be seen to be maturing. All these and others are signs of a rapidly developing and ma- turing country growing steadily towards its 2030 National Vision. What's your outlook for the next five years? Overall the outlook for the construction market remains positive. With specific market changing events programmed for five years from now it is impossible not to consider a short to medium term peak in construction projects as these events become closer and more immediate. Overall the outlook is good, but the market needs to progress past and through the current hiatus with sufficient and locally deployed resource to adequately meet these future challenges. It is critical for all sectors that the release of funding for those pro- grammes required for 2022 and 2030 commences with a degree of positiv- ity and urgency in the short term to enable those companies committed to supporting Qatar with its develop- ment to meet the future challenges and satisfy client needs. The World Cup has added a further degree of immediacy to development and has provided focus to accelerate several infrastructure and tournament specific projects”

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// Awards // construction business news me // June 2017 30 In association with

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construction business news me // June 2017 // 31 Gold Sponsors Category Ally Presented by

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// Awards // construction business news me // June 2017 32 C onstruction activity in Qatar remains robust, despite some challenges, and the country is forging ahead with some incredibly ex- citing plans with just over five years to go before the first ball is kicked at the 2022 FIFA World Cup. The list of world class projects re- cently completed or under construction is long and varied. To name just a few they include the hugely ambitious Doha Metro project; the $45bn Lusail Real Es- tate development which will eventually be home to half a million people; The expansion of Hamad International Air- port to more than 65 million passengers. And let’s not forget all the venues and infrastructure related to the World Cup, the greatest sporting show on earth. Qatar is expected to welcome 1 million visitors during the tournament which will require huge investments in infra- structure, hotels and other projects. Last month’s Construction Innovation Awards Qatar 2017 demonstrated that there is much to celebrate about Qa- tar’s construction scene right now. Doha Festival City, the country’s latest mega- project, emerged as the big winner at the awards which were presented at a glit- tering ceremony at the Grand Hyatt ho- tel Doha to celebrate the achievements of the construction industry’s finest. His Excellency Muhammed Bin Ahmad bin Doha Festival City is the standout performer at the Construction Innovation Awards Qatar 2017. A total of 17 awards were handed out at the Grand Hyatt Doha on May 10 Pride of Qatar Pride of Qatar Engineer of the year - Shah Memon, Multiplex

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construction business news me // June 2017 // 33 Real Estate Innovation of the Year – Just Real Estate Construction Executive of the Year – Peter Leitner, GCC/ALEC JV Project of the Year: GCC ALEC JV for Doha Festival City Sustainable Project of the Year: Arabian MEP for the Polysilicon Solar Panel Manufacturing Facility

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// Awards // construction business news me // June 2017 34 Formwork Company of the Year – DOKA Sheikh Thani bin Abdullah Al Thani, chairman of SAK Holding (pictured right) wins the Ecosystem Innovation award for the outstanding Sharekna Initiative

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construction business news me // June 2017 // 35 Tower Al Kuwari – Vice Chairman of Qatar Chamber, was on hand to present all of the awards alongside Sheikh Khaled bin Nasser, Chair- man of KBN Group. Both gentlemen were presented with special awards in recognition of their great contributions to business in Qatar. Doha Festival City walked away with the award for Project of the Year as well as Commercial Project of the Year and also garnered the coveted Construction Executive of the Year award for its evergreen project manager, Peter Leitner of GCC/ALEC JV, the main contractor that built the mall. Even the award for Health and Safety Initiative of the Year, won by Arab Engineering Bureau, was linked to this great project which opened in April. Khatib & Alami won the Most Innovative Project award for the Schools Master Plan for the State of Qatar Health and Safety Initiative of the Year – Arab Engineering Bureau Faithful+Gould won the award for Hospitality Project of the Year for the Shaza Hotel Doha Sheikh Thani bin Abdullah Al Thani, chairman of SAK Holding

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// Awards // construction business news me // June 2017 36 Another big winner on the night was Faithful+Gould which had a big hand in the award for Hospitality Project of the Year which went to The Shaza Hotel Doha, set to be a game changer when it opens later this year. The con- sultant also played an important role in Doha Festival City alongside the con- tractor GCC/ALEC JV. The Contractor of The Year award, however went to Multiplex which re- cently handed over the Qatar National Library in Education City and is also a main contractor on the huge Msheireb Downtown Doha project. Shah Memon, Multiplex’ construction manager on the QAR 2bn mixed use mega project, also walked away with the award for Engi- neer of the Year. Other big awards handed out on the night included Infrastructure Project of the Year which went to the Gabbro Berth Terminal, BMHS Project. Eisa Al Hammadi, CEO of Qatar Primary Ma- terials Company (QPMC), collected the award for the port expansion project which was project managed by Au- recon and built by a contracting joint venture of Six Construct and FLSmidth. Just Real Estate clinched the award for Real Estate Innovation of the Year for the company’s brand new sales cen- tre in Doha. Hill International bagged Eisa Al Hammadi, CEO of Qatar Primary Materials Company, collected the Infrastructure Project of the Year award His Excellency Muhammed Bin Ahmad bin Tower Al Kuwari, vice chairman of Qatar Chamber (left) and Sheikh Khaled bin Nasser, Chairman of KBN Group Construction Company of the Year – Alsarh Holding Group

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construction business news me // June 2017 // 37 tion despite challenging times in the construction scene. BNC Publishing and Construction Business News Middle East magazine would like to thank everyone that made the construction Innovation Awards a big success, especially its allies, Cimolai Rimond, Multiplex, Shaikhani Group, Hill International, Raimondi Cranes, Al Shafar United, and category sponsors Faithful + Gould. Project Management Firm of the Year, local firm ASTAD claimed Consultancy of the Year and Formwork Company of the Year went to DOKA for its involve- ment in the Doha Metro project. The Polysilicon Solar Panel Manufac- turing Facility in Qatar won Sustainable Project of the Year while the award for Most Innovative Project went to Khatib & Alami for its Schools Master Plan for the State of Qatar. Local group Alsarh Holding Group claimed the award for Construction Company of the Year for the many projects it has contributed in Qatar in recent years while Daemaar Group beat off stiff competition to bag the award for MEP Contractor of The Year. SAK Holding claimed the Ecosystem Innovation award for its Sharekna ini- tiative, which has helped to see many Qatari big projects through to comple- Project Management Firm of the Year – Hill International Faithful+Gould collected the Commercial Project of the Year award for Doha Festival City

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// Awards // construction business news me // June 2017 38 Mohammed Jafer Musthafa, founder and MD of Daemaar Group, collects the MEP Contractor of the Year award

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construction business news me // June 2017 // 39 Contractor of the Year was Multiplex Medgulf Consultancy of the Year – ASTAD

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// Awards // construction business news me // May 2017 40 Full List of 2017 Winners: Engineer of the Year Shah Memon, Multiplex Sustainable Project of the Year Arabian MEP - Polysilicon Solar Panel Manufacturing Facility Formwork Company of the Year DOKA Health and Safety Initiative of the Year Arab Engineering Bureau Hospitality Project of the Year Faithful+Gould - The Shaza Hotel Doha Most Innovative Project Khatib & Alami - Schools Master Plan for the State of Qatar Construction Company of the Year Alsarh Holding Group Infrastructure Project of the Year Aurecon - Gabbro Berth Terminal, BHMS project Project Management Firm of the Year Hill International Commercial Project of the Year Faithful+Gould - Doha Festival City MEP Contractor of the Year Daemaar Group Consultancy of the Year ASTAD Project of the Year GCC ALEC JV - Doha Festival City Real Estate Innovation of the Year Just Real Estate Construction Executive of the Year Peter Leitner, GCC/ALEC JV Contractor of the Year – Multiplex Contractor of the Year – Multiplex Ecosystem Innovation Sheikh Thani bin Abdullah Al Thani, chairman of SAK Holding - Sharekna Initiative Gold Sponsors Category Ally Presented by

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www.hillintl.com Leaders in Project Management

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// construction business news me // June 2017 42 The Road to 2020 S ustained lower oil prices have hit the regional con- struction sector in recent years but the approach of Expo 2020 has helped sustain momentum in Dubai. Not only will billions of dollars be invested in and around the Expo site over the next three years but big projects are being launched all over the emirate with a view to being ready in time for 2020. How much of a boost has Expo 2020 been for the construction sector? Has the government left it late to award main contracts for Expo 2020? How can com- panies fast track projects to be ready in time for the event? These are a few of the questions posed to experts that partici- pated in the top panel discussion at the recent Construction Innovation Forum. Considering the regional construction industry has been going through a rough time, how much of a boost is Expo 2020 to the industry as a whole? Zander Muego: What we’ve seen is the Expo has contributed to the construc- tion sector for sure. What it’s done from our perspective is increased the positiv- ity that came with winning the Expo and helped offset an otherwise very difficult market. There are a number of macro-economic factors at play, with oil prices and a strong dollar value put- ting a lot of pressure on the sector, so the Expo has helped boost the morale of the industry and a conduit of work, not just specifically Expo projects but also those around and related to it. Do strong oil prices provide an opportunity and an incentive to diversify local economies further and build more sustainable economies? Raj Chinai: What we’ve seen since 2014 is a dip in the overall macro environ- ment, particularly related to real estate. We’re now starting to see some positive momentum in terms of sales velocity and the overall fundamentals of the economy. That two and a half year down cycle typically gets followed by a two and a half year upcycle. With the Expo 2020 coming up I think what might happen is that the positive mo- mentum may carry that cycle forward beyond two and half years. So from our perspective Expo is an important event. It creates a positive sentiment that in- // Construction innovation Forum 2017

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construction business news me // June 2017 // 43 vestors have at the back of their mind, also for international investors that are looking at Dubai. Mohammed Jafer Musthafa: Develop- ments in Dubai have carried on well despite the oil price. If you consider the value of the construction sector last year was around AED 160bn and this year it’s AED 180bn - AED190bn, so growth of around AED 30bn. The construction market this year will drive growth in the economy of around 3 – 3.5% and that’s definitely happening with the help of Expo 2020. Are construction companies experiencing difficulties sourcing finance? Maged El Hawary: Some foreign com- panies are getting finance from other countries to finance projects which enables the client to get the project de- livered. Typical finance model is 60/40 up to even 80/20 so the client is paying only 20% while the bank is financing the other 80% with a holiday period of up to 36 months. So they can build now and pay later. This has been happening with many projects since late 2014. Raj: Whether you’re looking at foreign capital or capital from within the re- gion it’s imperative that investors have a confidence level based on some sort of prior track record. Investors within the region are more comfortable and familiar with Dubai and the fundamen- tals but the moment you start talking to investors in London, North America, etc there is a question mark around the confidence level given what Dubai has been through in the last 10 – 15 years. So the ability to demonstrate a proven track record, particularly on large scale projects, is important. Sobha Hartland is an 8million sq ft parcel of land in the heart of the city. It’s no small feat. Investors need to have some degree of confidence, par- ticularly for a city like Dubai that has been through its ups and downs. Is the government able to demonstrate they are doing enough to instill confidence in foreign investors to consider investing in projects leading towards 2020? Raj: In our projects we see upwards of 50 nationalities represented in our buyer pro- file. The fact that we have such a diverse mix of investors coming in says a lot about the confidence that people have in Dubai. Is the government cutting it a bit fine with the late award of Expo 2020 contracts? What sort of challenge does that bring? Miguel: Working on the Milan Expo 2015, one issue we had was the late award of the contract which put a lot of constraints and difficulties in term of logistics, because you have several contractors working on site at the same time and using the same infrastructure. That makes it harder to deliver on time so it’s important to start as soon as pos- sible and to release contracts early. Zander: In terms of financing, I’m not sure raising finance is the issue but more cash flow seems to be one of the main themes. There’s definitely a reluctance in the market here to pursue the enforce- ment of contract terms when it comes to contractors receiving funds. Even when payments are delayed and it interrupts the cash cycle it can have practical im- plications on site. It might not entitle the contractor to slow down or stop works but it has a practical reality. So when you talk about fast tracking projects that’s one of the challenges that always exists in the market here. As things pick up and we go through one of these increases in the cycle it becomes more and more of a challenge that contractors have to deal with and by virtue of that the consultants and clients in the industry. Which one of those challenges is causing the biggest headache? Maged: The time constraint is a ma- jor challenge for Expo 2020 which adds more pressure on cash flow. We are almost 30 months away from the event now.

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// construction business news me // June 2017 44 // Forum If Expo 2020 didn’t exist what sort of shape would the construction industry be in? Zander: I personally feel that the in- dustry would be in a pretty challeng- ing place right now. It’s difficult to quantify but it’s been a boost in gen- eral terms. There’s a push to complete projects. The market is still hungry for more work and there is capacity out there to deliver projects. Expo has been a big part of plugging a big gap that otherwise would have existed. Should we be fearful that after 2020 there will be fewer projects? Zander: There’s a lot of focus on Expo, almost a tunnel vision to 2020 just now. Part of my role at Thomas and Adamson is to look at strategy over both the short and medium to longer term. When we look at 2022 it’s difficult to see what’s going to fill that gap that’s being taken up by Expo just now. There’s definitely a concern in the industry what the sec- tor will look like after 2020. What sort of legacy do you expect Expo 2020 to leave? Miguel: Expo 2020 is a temporary event but it will leave a legacy for the future. We’ve seen that from previous expos that there was a big legacy in terms of facilities and infrastructure. How do you sum up the current state of our industry? Musthafa: I’m very positive about the market and I’m pretty sure that even after Expo there will be growth in the economy, no matter what happens with oil prices. It’s a temporary situation. Maged: I’m also positive about the market. Dubai started to pick up even before the announcement of the Expo. Since 2012 Dubai started to move again after the crisis. We can’t expect the peak that we saw in 2008 but I still feel positive about the future. Who knows maybe the next challenge will be hosting an Olympics. Expo will force innovation which could bring other op- portunities beyond Expo. Zander: There are always challenges in the construction industry. We’re going to see VAT introduced and I’m not sure anyone fully understands yet what the impact of that will be. There’s cause for optimism but there are also a lot of challenges that companies have to face. Raj: Expo 2020 is a great catalyst for ensuring that some great projects do come out. Dubai has and will continue to have very strong macro- economic fundamentals. We see the next 15 years being very strong. Miguel: We’re going through an exciting period but we also need to be cautious and be prepared for what’s next. In association with Platinum Sponsor Developer Partner Held Under the patronage of Gold Sponsors Silver Sponsor

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construction business news me // June 2017 // 45 MEET THE PANELISTS Mohammed Jafer Musthafa - Managing Director - Daemaar Group Mohammed Jafer Musthafa is a passionate, entrepreneurial leader with an extensive background in engineering. After gaining experience with the ADNOC Group in Abu Dhabi, he completed a Master’s Degree in Petroleum from Herriot Watt University, Dubai before using his life savings to start his own company. The quick success of Daemaar Contracting led to the founding of Daemaar Group as a holding company for six-standalone firms covering Construction, Facility Management, Trading and Retail. Zander Muego - Director with Thomas & Adamson Zander Muego is a Director with Thomas & Adamson, an international consultancy providing a range of professional services to the construction and property sector. He has significant experience in the planning and control of construction projects across a wide range of sectors, including residential, hospitality, office, retail, industrial and education. He has gained extensive experience over his 17 year career delivering a wide portfolio of public and private sector projects in both the UK and UAE. Maged El Hawary - Project Controls Director at Al Shafar General Contracting (ASGC) Maged El Hawary is currently a Project Controls Director in ASGC (Al Shafar General Contracting LLC). He has 20 years of successful experience in all aspects of Project Management, Planning, Risk Management, Cost Control and Earned Value Management in key international companies and was managing major projects in Residential & Commercial, Oil & Gas, and Industrial sectors. Maged is a Guest Lecturer in Heriot-Watt University and President of AACEI, UAE. He is a professional speaker and panelist in many international conferences. Raj Chinai - Managing Director – Sobha Group Raj Chinai joined Sobha Group in 2014 as Director, with the primary responsibility of overseeing sales and marketing efforts for Sobha Hartland, a $4bn mixed-use project in the heart of Dubai. In 2015, Raj was appointed as Managing Director (MD) of Sobha Group. As the MD, he works in close collaboration with Mr. PNC Menon, the company’s Founder & Chairman, on executing the company’s short and long-term strategic objectives. Miguel Da Gama - Projects Manager – Cimolai Rimond Miguel is a Civil Engineer Master in Construction Management & Certified Project Management Professional with 10 year experience in Construction projects. Miguel is Currently the Project Manager for the Masdar Visitor Center Project under construction in Masdar city. The project was originally built as a temporary structure UAE Pavilion for EXPO Milan 2015 and transported to UAE & Re- Constructed to be a permanent Visitor Center for Masdar City.

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construction business news me // June 2017 // 47 // Machinery & Vehicles Our monthly review of the workhorses of the construction industry Muscle & Might Muscle & Might News UD Trucks Time for Croner in the region Safety first Volvo Trucks begins roll-out of safety features in the GCC Demolition Demonstration A special job in South Korea needs a special excavator Digital revolutionaries Fear of an Uber-style takeover of construction is driving Caterpillar and Uptake’s IoT transformation Man Trucks The German company is putting safety first 48 52 54 58 60 64

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// NEWS // construction business news me // June 2017 48 Machinery Volvo's Chinese manufactur- ing subsidiary SDLG says its new F-Series wheel loaders for the Middle East and Afri- ca offer greater uptime than previous models. SDLG has launched four wheel loaders for both markets as part of its new F-series: the L953F, L956F, L958F and L968F wheel loaders. The manufacturer says that it has made a number of technical improvements to improve productivity, reli- ability and uptime. “Customers are increas- ingly demanding reliable construction equipment at affordable prices,” said SDLG product manager Henrik Sjöstrand. “This is SDLG’s specialty. This new range has been specially en- gineered for high productiv- ity and reliability, and will provide customers with an excellent return on invest- ment.” SDLG hopes the wheel loaders can help it capitalise on large-scale infrastructure projects, as well as quarry- ing, which continue to oper- ate at strong levels in both the Middle East and Africa. “The most noticeable dif- ference is the design of the new machines,” said Sjöstrand. “The larger cab design adds 20% more glaz- ing for improved visibility, safety and efficiency. Su- perior air conditioning has also been added for greater operator comfort, while the single joystick guarantees precise, easy and comfort- able operation of the loader arm and bucket, reducing operator fatigue.” A high breakout force and a new bucket design pro- vide improved productivity and ease of operation. The machines’ bucket volumes range from 3m3 in the L953F to 3.5m3 in the L968F. In ad- dition, a wide range of at- tachments are available to ensure versatility. The machines also feature an improved axle design for added support. Where the rear drive axle on the L-se- ries is mounted to the auxil- iary frame, the F-series’ rear drive axles are mounted to the swing frame, providing larger oscillation and better stability and traction. “The new series has been designed to ensure that service and maintenance can be handled easily, with excellent accessibility throughout the machine,” added Sjöstrand. “Easier and more affordable main- tenance is something our Middle Eastern and African customers are increasingly demanding. So, we’ve op- timized the maintenance intervals to provide greater uptime, with parts avail- ability that is much more affordable. This is backed up by SDLG’s superb dealer network, which is ready to support its customers’ main- tenance and repair needs when required.” He concluded: “We have already received a great deal of interest in the new series. We expect its speci- fications to exceed the de- mands of our customers. Those looking for high- performing, reliable, easily operable and cost-effective wheel loader need look no further than SDLG.” Greater uptime promised for new SDLG loaders

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construction business news me // June 2017 // 49 Cranes Masetti to power Raimondi new markets push KBW Investments-owned Raimondi Cranes has ap- pointed Mauro Masetti as its new commercial direc- tor. The tower crane com- pany has described his re- cruitment as a key step in its strategic push into new markets around the world. The Italian company has expanded rapidly into overseas territories such as North America, the Middle East and Australia in recent years, and Ma- setti is tasked with guiding sales growth in both cur- rent and future markets. Masetti is a veteran of heavy lifting machinery and has more than two decades of market experience in the segment across several Eu- ropean and North Ameri- can markets. His diverse background in sales, client servicing and after-sales ser- vicing is strategically in line with Raimondi’s ambitious global expansion plans, said the company. “Raimondi is recognised worldwide in the competi- tive tower cranes industry as a milestone manufac- turer with a brand hallmark of reliability and durability. Leading the company’s sales arm is the most attractive aspect of my new position, and I also consider it as a field test of the experience I have accumulated through my years in the profession,” said Masetti. Ahmed Alkhoshaibi, CEO, Raimondi Cranes, said the experienced exec- utive was a perfect fit for the company. “To further develop and continue with our aggres- sive growth strategy, it was integral that a market vet- eran with demonstrated industry commercial savvy was appointed to the ex- ecutive team to take deci- sive steps forward,” he said. “Mauro, with his deep roots in the tower crane commu- nity and the right drive to expand an already highly- developed portfolio, was the perfect fit to head the commercial team.” CASE Construction Equipment has renewed the livery on its products to reflect the “values of the brand” includ- ing its practical, hands-on approach. The new styling is also part of CASE’s ongoing strategy to strengthen its branding while consolidating its posi- tion in all markets. CASE’s owner CNH Industrial re- cently announced new agreements with Sumitomo and Hyundai Heavy Industries as well as the redevelop- ment and rebranding of its San Mauro and Lecce plants to create the CASE European Excavator and Wheeled Equipment Hubs. According to CASE, the new styling and livery, which were developed in collaboration with CNH Industrial’s Design Centre, make a “strong brand statement.” CASE has famously used a bald ea- gle logo (based on Old Abe, a mascot for an American Civil War regiment) on its equipment since 1865, a revised Power Abe metallic badge is displayed on every machine, “celebrating the CASE brand’s rich heritage and looking forward to the future.” Elsewhere the livery features a new dark grey colour on the lower part of the machines and the inte- riors have been designed to create a styling specific to CASE that will shared by all models – from the common seat design to the dash- board and interior colours. “Our aim with this project was, on the exterior, to create a design lan- guage that reflects solidity and preci- sion, while giving a look specific to the CASE brand that reflects its history and its values and that is common to all models,” said David Wilkie, director CNH Industrial Design Centre. Practical new look for CASE machinery Mauro Masetti

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// NEWS // construction business news me // June 2017 50 Machinery Machinery Chicago Pneumatic has de- scribed its deal for 25 light towers via authorised distribu- tor General Transportation & Equipment Company (GTE) for a key project in Kuwait as a “breakthrough” for its pres- ence in the country. The order for CPLT V15 LED light towers - the first sale of the units in the Middle East - will provide crucial il- lumination for a time-sensitive oilfield construction project being carried out by local con- tractor Al Yousifi Engineering and Construction Company, said Chicago Pneumatic. "The CPLT V15 LED is highly efficient, making it ideal for projects requiring a large number of light tow- ers. With this model, users can save on both fuel and maintenance costs," said Ejazul Hassan, the equip- ment sales manager for GTE. "For instance, the LED’s lifespan is 30,000 Dealer Al-Futtaim Motors (AFM) has launched the re- designed medium duty Hino 500 Series truck in the UAE. The new vehicle is the second launch in two months from the Japanese manufacturer following the introduction of the Hino 300 series hybrid. The 2017 Hino 500 Series features a redesigned exte- rior, a host of enhanced safety features and improved driver comfort. According to AFM, the development of the truck was focused on quality, du- rability and reliability, but it was also purpose-built to suit the needs of the local market to support customers’ busi- nesses. “This year is proving very positive for Hino, as we continue to grow our mar- ket share and introduce new products that meet our cus- tomers’ needs,” said Ramez Hamdan, general manager of Hino at Al-Futtaim Motors. “Just last month, we launched the UAE’s first hybrid truck Breakthrough for Chicago Pneumatic in Kuwait Hino launches new medium duty truck in UAE hours, compared to 6,000 hours provided by a metal halide bulb. This means the CPLT V15 LED’s bulbs don’t need to be replaced for ap- proximately three years." According to Amjad Fallatah, the regional product manager for Chicago Pneumatic Con- struction Equipment, because of the harsh conditions that the light towers are likely to operate in, the CPLT V15 LED features a polyethylene cano- py that protects vital internal components. "This ensures peak perfor- mance and optimises the light tower’s lifespan and resale value. Not only is the canopy durable, it also features wide wing doors to allow easy maintenance access to the machine, including service components and drains. The light tower also has an envi- ronmentally friendly frame that prevents any excess fluid escaping," he said. in the form of the Hino 300 Series hybrid, and the intro- duction of the Hino 500 Series allows us to offer a differ- ent solution to meet multiple sectors looking for a reliable truck that offers a host of ad- vanced safety and driver com- fort features.” He added: “With compa- nies increasingly aware of the need to reduce emissions and reliance on fossil fuels, the Hino 500 Series also maximis- es efficiency and significantly reduces consumption thanks to class-leading engine and transmission choices.” The medium duty Hino500 Series offers a wide possibil- ity of applications, such as tipper trucks, curtain siders, reefer trucks as well as gen- eral cargo, making it a real all-rounder. The truck also features a range of safety features including ABS, Front Underrun Protection System (FUPS), Rear Underrun Pro- tection System (RUPS) and much more.

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construction business news me // June 2017 // 51 Machinery Machinery Volvo Construction Equip- ment (CE) used its Volvo Group Innovation Summit last month to unveil the EX2, which is believed to be the world’s first electric compact excavator. Volvo CE claims that the machine delivers zero emis- sions and is ten times higher in efficiency, ten times lower in noise levels and offers re- duced total cost of ownership compared to traditional die- sel-powered equivalents. To make the EX2 prototype fully electric, the combustion engine has been replaced with two lithium ion batter- ies, totaling 38KWh, which store enough electric energy to operate the machine for eight hours in an intense application, such as digging compact ground. The hydraulic architecture has also been replaced with electric architecture which incorporates electromechani- cal linear actuators that help to optimize the transmission German construction giant Li- ebherr Group says that sales in the Middle East maintained their 2015 levels despite chal- lenging market conditions. The Liebherr Group re- ported strong financial results for 2016, with a turnover of EUR 9.01bn ($10.1bn), al- though revenue was down by $248mn or 2.5 percent com- pared to a record 2015. The company said it managed to record this performance in a difficult market environment and it is the third-highest turn- over in the group's history. In the Near and Middle East, sales remained at the previous year’s level, while Russia and Poland led a positive increase In Eastern Europe. A slight fall was recorded was recorded in North America. Africa and the Far East / Australia, all saw turnover fall below the previ- ous year's level. Much of the decline of rev- enue in the group can be at- tributed to the construction machinery and mining equip- ment divisions which include World’s first electric excavator unveiled Middle East steady as Liebherr reports strong 2016 chain. Removing the hydrau- lic system and the combustion engine, as well as reducing the cooling needs, has led to significantly lower noise lev- els. At this stage, the EX2 is purely a research project and there are currently no plans for industrialisation. “In line with the Volvo Group’s vision to be the most desired and successful trans- port solution provider in the world, Volvo CE is committed to contributing to sustainable development,” said Thomas Bitter, SVP of marketing and product portfolio. “At Volvo CE we are devel- oping technologies connected to electromobility, intelligent machines and total site solu- tions that will benefit our cus- tomers and the environment by contributing to increased machine performance, pro- ductivity, efficiency, safety and sustainability. Our future prod- ucts and services will play an important part in building a sustainable society.” earthmoving, mining, mobile cranes, tower cranes and con- crete technology. Sales rev- enue fell by $248 million, said Liebherr, however earthmov- ing, where the Middle East ac- counts for 0.9 percent of sales, only experienced a slight de- cline of 0.7 percent. A larger decrease was ex- perienced in mobile cranes which decreased by $96mn. Liebherr Group described the fall in sales in the Near and Middle East as significant. The region contributed to 5.4 per- cent of sales. Likewise there was a further “significant” fall in tower crane sales in the re- gion. Performance was further hampered by sales declines in the Near and Middle East of concrete technology which contribute 15.4% to overall di- vision revenues. “In the Near and Middle East, Saudi Arabia, one of the division’s most important in- dividual markets ground to an almost complete halt in the second half of the year,” said Liebherr.

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// construction business news me // June 2017 52 // Vehicle launch Named after the Greek of time, UD Trucks’ Croner makes its debut in Dubai By Matthew Treanor Time for Croner in the region U D Truck’s Croner medium- duty truck was unveiled at an expensive-looking and glitzy launch ceremony in Dubai’s Studio City last month but this is a vehicle aimed at fleets with modest budgets. There was a time when the Middle East, or to be more precise, the GCC largely ignored the marketing blurb about efficiency and driver comfort that was emblazoned over manufac- turer brochures. Fleets purchasing has been pretty much based on three Ps: price, prestige and payload for de- cades. However there has been a slow but significant shift in buying habits towards trucks that run for longer and offer a better total cost of ownership effectively opening the door for manu- facturers that may have previously been seen as niche brands. Despite falls in the crude oil price, diesel has continued to creep upwards. The UAE’s ministry of ener- gy’s latest figures, for instance, show that the price of diesel rose from AED 1.6 last May per litre to AED 1.97 in May 1017 – an increase of 13 percent. Inflation is also continuing to rise. Furthermore, the introduction of VAT, while placing more funds into the government coffers which in turn could stimulate project financ- ing, will also put more pressure onto fleet and contractor costs. The Croner has been named after the Greek god of time because the manufacturer prioritised vehicle up- time during its development, but the launch could also prove timely for those in the market for new trucks. Designed with customers' demand and business needs in mind, Croner is engineered to help UD’s customers stay ahead of competition through the simple concept of saving time. “UD Trucks understands that more time spent on the road and less time in the workshop drives success for our customers' businesses,” said Mourad Hedna, UD Trucks Middle East, East and North Africa president. “It is our aim for Croner to make every moment count, through maximising productiv- ity and minimising downtime on every run our customers make.” UD Trucks has designed the Croner range specifically for growth markets across the Middle East, Asia,

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construction business news me // June 2017 // 53 Africa and South America. It is also a rare example of a major release of range in this region coinciding with a global launch. Prior to the May event, Jacques Michel, president, Volvo Group Trucks Asia & JVs Sales, UD Trucks explained to CBNME that the truck had already been deployed by a customer in the region as part of its global test programme. “We have been testing and running the truck for 1.4 million kilometres in six different countries, some that are very high altitudes like Peru. It is running on the roads of Thailand and Indonesia, as well as South Africa,” he said. The founder of UD, Kenzo Adachi, was keen that his company built the “truck that the world needs today” and Michel said that customer feedback shaped the Croner’s development. Consequently, the desire of buyers to get more bang for their buck from their trucks was scribbled onto the Croner’s design boards in Japan. “When we start with a concept, you have a lot of ideas internally. Fortu- nately we have a lot of people with great ideas which is good but the most important thing is to listen to custom- ers,” he explained to CBNME. “We had to find out about their experi- ence with UD Trucks, how they see the future changing. We worked with our customers all the way through the development. We went out of our design centre in Japan and went to the market. I think that has been the most important thing.” The net result is a truck that meets UD’s aims of producing a reliable and versatile truck range built with robust It is our aim for Croner to make every moment count, through maximising productivity and minimising downtime on every run our customers make” and quality components with the promise of delivering extra productiv- ity and superior uptime. Croner offers options for three gross vehicle weight (GVW) models: MKE, LKE and PKE; and their wheelbase variants, offering up to 21 different configurations to suit specific demands of various industries. Additionally, the air suspension on all variants is avail- able as an option to protect customers' cargo, especially when travelling on rough road conditions. “The 11t has been a backbone in the past,” Michel told CBNME. “Of course construction is very big so you’ve got a mixer and tipper which can support that segment and infrastructure devel- opments and general construction.” UD Trucks has been part of the Volvo Group since 2007 and a decade down the line, its latest range re- tains its strong Japanese heritage and craftsmanship but also utilises Volvo Group's global technology and sourc- ing while plugging into local manufac- turing and customer support. “Further to that, with UD Trucks' ultimate dependability standard and gemba spirit [a Japanese word mean- ing where value is created] incorporat- ed in every aspect, each component is the result of years of development and stringent stress testing, a true testament to the Japanese hallmarks of quality,” says the company. 'Going the Extra Mile’ is a brand promise of UD Trucks. The focus on fuel efficiency, uptime, reliability and drivability, while meeting today's high standards for safety and environment, enable UD Trucks to provide Middle East customers with, what it claims is the best products and services in the market to meet their business needs. UD Trucks offers a comprehensive set of what it labels UD Extra Mile Support services, such as UD Genu- ine Service and Parts, UD Driver Training, and UD Trust Service Agreements. These, the company says, were developed to ensure its trucks, such as the Croner, run and remain in optimum condition to go the extra mile, saving minutes, hours, and days over the years.

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// construction business news me // June 2017 54 Volvo Trucks begins roll-out of safety features in the GCC By Matthew Treanor Safety first T he Volvo brand has cham- pioned safety for decades. While the truck and heavy vehicle operation has long been separated from its passenger car sister company (which was sold first to Ford in 1999 and then later to China’s Geely in 2010), its latest generation of vehicles continue the tradition of placing driver safety at the centre of its development. Senior executives from the company held a special briefing in Dubai last month on the famous Swedish marque’s advances in protecting both the driver and other users on the road. At the event it was revealed that the company is rolling out five new features – start- ing with Saudi Arabia - across their FH, FMX and FM ranges designed to improve uptime and lower costs of industry truck operators working in the challenging climate and terrains of Middle East countries. Volvo Trucks’ president Claes Nilsson told those present that the company delivered more than 102,800 vehicles last year and that it, “provides complete transport solu- tions for professional and demanding customers, offering a full range of medium to heavy duty trucks.” Relatively speaking the Middle East may be one of the smaller mar- kets in which Volvo Trucks oper- ates, but it has proven to be highly receptive of the company’s most recent range launches and adoption rates, in the UAE especially, of tech- nologies such as its I-Shift transmis- sion have been strong. Nilsson revealed that the company exported 1,277 vehicles to Saudi Ara- bia last year making it Volvo Trucks’ 25th largest export market (the US ranks first with a 18,379). Given its success in the Kingdom and its well- established route to market via Zahid Tractor, the company has agreed to offer its best safety features as stan- dard on the long-haul FH from 2018. Beyond the sales numbers, this was really an opportunity to get an insight into how one of the world’s leading manufacturers believes that the region can benefit from leading edge technology that it may have eschewed in the past. Pioneering technology sits at the // Commercial vehicles

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construction business news me // June 2017 // 55 very heart of Volvo Trucks’ design and engineering and, through the years, it has produced the world- class safety standards and drive com- fort that the Swedish manufacturer is renowned for. Several decades ago, Volvo engineers were the first to de- velop the three-point safety belt and today it is at the vanguard of utilising IT systems on its trucks. It continues to set new standards with the range of technological advances, treading new ground and setting the bench- mark for the rest of the industry. Claes described Volvo’s Trucks as “a driving force in the development of electro-mobility, automation and connectivity”, all technologies that are very much on the cutting edge of truck design. He added that any progress it is making remains thoroughly rooted in “the core values of quality, safety and environmental care.” As an example of its position at the forefront of vehicle technology, Volvo Trucks recently tested the world’s first fully autonomous truck deep underground in the dangerous environment of the Kristineberg Mine in northern Sweden. The truck was part of a development project that is on a mission to transform technical breakthroughs into practical custom- er benefits. With safety a top priority, the self-driving truck uses various sensors to continuously monitor its surroundings and avoids both fixed and moving obstacles. At the same time, an on-board transport system The view from the EU More vehicles on the roads, a faster traffic flow and a distracting stream of information all impose considerable demands on both commercial vehicle drivers and car drivers. On the other hand, there has never been more opportunities for the person behind the wheel to drive more safely than there is today. The active safety systems found in many modern cars and trucks within the EU make it far easier to avoid incidents and accidents. As of November 2015 there is an EU- wide legal requirement for new two- and three-axle heavy trucks to be equipped with the function automatic emergency brake. The aim is to reduce accidents in which a truck drives into the back of a vehicle in front of the truck, an accident scenario that accounts for about one-fifth of all road accidents involving trucks. At present, legislation requires that the emergency braking system must reduce the truck´s speed by 10 km/h. Next year, this will be tightened to 20 km/h. "It's great that the legislation is becoming stricter but I still feel the legal requirements are too low. If you are driving at 80 km/h when the emergency braking system is deployed, you need to cut your speed by far more than just 20 km/h to avoid a massive collision if the vehicle in front has come to a standstill," says Carl Johan Almqvist, traffic & product safety director at Volvo Trucks. Volvo Trucks has developed a system that goes well beyond both current and future legal requirements. The system, which was introduced in 2012, focuses primarily on alerting the driver to the risk of a collision. "In many cases this is enough for the driver to quickly assess the situation and avoid an accident," explains Almqvist. The emergency brake is only used if it is absolutely necessary, and it is deployed extremely quickly. The braking speed - or retardation to use the correct technical term - is about 7 m/sec2, which is on par with what many passenger cars can manage. In practice this means that the truck's speed can be cut from 80 to 0 km/h in about 40 metres. The system monitors the vehicles in front with the help of camera and radar technology and functions irrespective of whether it is sunshine, mist, fog or darkness. If there is a risk of collision, the driver is alerted via gradually escalating light and acoustic signals. If the system does not detect a response from the driver, the truck automatically starts braking gently. If the driver still does not respond, the emergency brake is deployed until the vehicle comes to a complete standstill. After a further five seconds without any movement of the steering wheel or other reaction, the handbrake is automatically engaged, a safety measure to prevent the truck from rolling if the driver is in shock or is unconscious. When the emergency brake is deployed, the brake lights start flashing to warn vehicles to the rear, and when the truck's speed drops to 5 km/h the flashing emergency warning lights are also activated. Volvo's system also functions on curvy roads and can differentiate between roadside guard rails and genuine obstacles such as vehicles including motorbikes. In order to gain the full benefit of the system, it is essential to ensure that all functions, such as the ABS brakes, are activated on both truck and trailer. Considering the short period that has passed since the introduction of emergency brake legislation, it will take some time before its positive effects are reflected in accident statistics. However, Volvo Trucks is convinced of the benefits of the emergency braking system and other active safety devices. "Our active safety systems are part of a holistic solution that clearly helps reduce risks in traffic, but it is important to bear in mind that technology alone cannot do the job. A safe traffic environment requires active interaction between all road users. An experienced, attentive driver who handles his or her vehicle responsibly is still the best form of accident prevention," says Almqvist.

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// construction business news me // June 2017 56 // Commercial vehicles gathers data to optimise and coordi- nate the route and fuel consumption. More importantly perhaps for the construction industry is the I-Shift which saw an optional crawler gear launch last year. The I-Shift reduces the risk of accidents by removing the possibility of common driver mis- takes such as not engaging the en- gine brake when going downhill, not engaging the correct gear, or driving at a very high RPM. With I-Shift, all of these driving mistakes are avoided and the truck driver can focus on the road, become more fuel efficient and reduce the wear and tear of his clutch, gearbox and brake pads. Volvo also offers a specially opti- mised I-Shift for severe duty appli- cations. This rugged version of the I-Shift automated manual transmis- sion is engineered for a wide range of construction and oil field applica- tions. The gears and the hardware in the severe-duty I-Shift have been hardened to withstand frequent shift- ing in rugged operational environ- ments like the varied landscapes and topography found throughout the Middle East. The enhanced I-Shift gearbox now offers more efficiency for the Middle East. “The varied landscapes and to- pographies of the Middle East are some of the world’s most chal- lenging when it comes to transport operations,” said Giovanni Bruno, VP, MEENA. “However, this is where Volvo Trucks excels, via our pioneer- ing design and technology, we have a long and proud legacy in sup- porting our customers handle heavy loads even in challenging off-road terrain and harsh climate only found in the Middle East.” The new crawler gear technology was tested to its limits in the Port of Gothenberg in 2016 with a FH16 production model, the most power- ful in the FH series, completing an astonishing challenge, pulling a 750t 40-trailer land train from standstill over 100 metres to demonstrate the remarkable capabilities of the gear- box. The enhanced option for the I-Shift automatic gearbox can drive as slowly as 0.5-2 km/h and can start off from standstill while safely hauling 325t, a unique achievement for series-produced trucks with an automated gearbox. Embodying this commitment to innovation is the technology that has gone into developing the FH series not only making them robust and du- rable to withstand the variable road conditions and extreme climate of the Middle East, but also one of the safest, most comfortable and easiest models to drive, claims Volvo. Developed for tough environ- ments, Volvo Automatic Traction Control, which is already used on Volvo’s articulated haulers, is now standard on the Volvo FMX front- wheel-drive trucks; 4x4, 6x6, 8x6, 10x6. The system offers drivers improved manoeuvrability and fleet owners the ‎added benefits of lower fuel consumption and decreased wear and tear. The system ensures

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construction business news me // June 2017 // 57 that the ‎optimal drive combination is always enabled, removing the deci- sion from the driver. The system also consists of software connected to the wheels’ speed sensors, which detect and control wheel drive. When a rear wheel starts to slip, power is trans- ferred automatically to the front wheels without the truck losing torque or speed. A coupling clutch activates the front-wheel drive in just half a second. Volvo Trucks’ introduction of dual front axles for heavy-duty models increase the maximum technical capacity from 18t to 20t. According to the Swedish truck-maker, the extra load capacity translates directly into “increased income-earning potential, something that is particularly valu- able when transporting heavy materi- als in construction operations.” Higher load capacity above the front axles also permits a greater variety of crane configurations and allows other applications with con- siderable weight on the front axles. Another feature, Volvo Dynamic Steering combines conventional hydraulic power steering with an electronically regulated electric motor fitted to the steering gear. The result is precise steering that gives the truck driver a safer, more comfortable and more enjoyable working environment. Designed and engineered with drivers in mind, the system can reduce wear-and-tear injuries on drivers, keeping them on the road which in turn benefits busi- ness productivity. Bruno believes that Volvo Trucks product offering is stronger than ever: “We have a wide range of trucks that cover the needs of most applications and the service and support provided by our local dealer network and service facilities are sec- ond to none. Altogether, our trucks, products and services offer the best solution for every need. We are also continuously improving, expanding and developing our products to meet new and specific customer needs.” The varied landscapes and topographies of the Middle East are some of the world’s most challenging when it comes to transport operations” Giovanni Bruno (left) and Claes Nilsson

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// construction business news me // June 2017 58 A special job in South Korea needs a special excavator By Matthew Treanor Razing Standards I n the Middle East, and the Gulf Countries in particular, contrac- tors typically use large excavators, explosives or wrecking balls to bring down buildings depending on whether they are clearing space for new buildings or, as is quite common, surgically removing parts of a structure to add new sections. South Korean companies, however, have for decades taken a top-down approach, preferring to place their equipment at the summit of a building before clawing their way back down to earth. In an effort to steer his industry away from this dangerous approach and prompt changes to government regulations, Doh Moon-gil, CEO and chairman of demolition Sungdo Con- struction has set-out to prove that it is possible to bring down buildings from the ground up but his company has needed a very special machine to do it. Sungdo Construction was founded in 1979 and the family run company has become South Korea’s leading demolition firm. Moon-gil’s company has forged a reputation for its work in high-profile demolition projects across the country. In 1995, Sungdo Construc- tion played a considerable part in the clean-up operation of the Sampoong department store in Seoul where, in the largest peacetime disaster in the country’s history, 500 people died after the building collapsed. It also later helped reshape the centre of the coun- try’s capital in 2002 when it dismantled the 5km of concrete that was the Cheonggye elevated highway. When faced with the task of demolishing the ten-storey hospital in the city of Changwon, Moon-gil believed the company could feasibly bring down the unstable and ageing building by opting to deploy a large excavator rather than placing a ma- chine on the roof. Moon-gil realised that by choosing the Volvo EC480EHR ultra high-reach excavator – the first of its kind to be used in the country – he could also achieve his goal of encouraging higher safety standards in Korea’s demolition industry as well as successfully com- pleting the project. // Demolition The first EC480EHR in the country being put to work

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construction business news me // June 2017 // 59 Sungdo Construction’s CEO recalls how the construction business has been a ‘foundation’ of Korea’s post- war economic development – helping to propel it from one of the world’s poorest countries in the 1950s to one of the wealthiest – but feels, when it comes to safety regulations in the international construction industry, the country has not yet caught up with global norms. “It is common practice in the Korean construction industry to lift a conventional excavator on to the top of a building and dig down, which increases the possibility of collapse,” Moon-gil explains. “High-reach demolition is safer for operators, as well as anyone else at the project site. And there are some projects where a normal excavator just can’t get the job done – this hospital demolition was one of them.” The Volvo EC480EHR offered Sungdo Construction the extra height it needed with a 3.4m extension to the standard 28m long boom. As the first ultra-high-reach excavator in South Korea, Moon-gil believes that it will open the door to new opportunities for his company, in addition to elevat- ing safety standards in the country. Keeping Moon-gil and his team safe on the job, the ultra-high-reach excavator has a steel frame-mounted Falling Object Guard (FOG) cabin and reinforced windows to protect the operator from being struck by debris. Cameras on the boom, rear and sides of the machine allow for views of the entire work area. Mun In-hwan, one of Sungdo Con- struction’s most experienced opera- tors, says he could confidently use the excavator to bring down mounds of concrete and rebar. Over his 14-year career as an excavator operator, he has had ‘several close calls with death’. And as a father, he wants to feel sure that he will always be able to return home at the end of the day in the same condition he started. “Doing the work without a high- reach machine would be really dan- gerous considering how unstable this building is,” he says. Towering far above the 4m-high, aluminum barricades that surround the 18,000m² job site, the machine could not be missed. Fitted with a 3t sheer- ing tool that can slice through metal and cement, In-hwan says he had never felt safer while on a job than when he was operating the excavator. In addition to the safety features of the EC480EHR, the machine also has a dust suppression system, which was a real benefit considering the hospital worksite sits adjacent to the new Sam- sung Changwon Hospital. Leading the way for the Korean demolition industry, Sungdo Con- struction has previously devised new demolition methods and founder Moon-gil hopes the use of high- reach machines will become standard practice. Though he realises that enhancing the quality and safety of demolition in his country will not come easy, he believes his posi- tion as chairman of the Construction Policy Committee, which is part of the Korea Specialty Contractors As- sociation, will help him to improve industry standards. “Not only did the high-reach excava- tor improve working conditions, it also increased our work rate,” said Moon-gil. “In seven days we were able to complete what would nor- mally take ten days. I’m advocating for the implementation of new safety regulations. Once these are adopted, I hope the demand for more high-reach demolition machines, like the Volvo EC480EHR, will also increase.” EC480EHR operator Mun In-hwan From left: Sungdo Construc- tion President and CEO Doh Moon-Gil, Managing Director Doh Hyung-rok, Director Min Young-suk In seven days we were able to complete what would normally take ten days. I’m advocating for the implementation of new safety regulations”

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// construction business news me // June 2017 60 Fear of an Uber-style takeover of construction is driving Caterpillar and Uptake’s IoT transformation By Matthew Treanor Digital revolutionaries I f you’re in the construction industry in the Middle East, you’ve prob- ably caught yourself peering into someone else’s job site to pass a critical eye over how a crane has been positioned or how a fleet of loaders is moving. If you work for a data analytics company, you’ve probably stared at the same view and imagined all the differ- ent moving parts in action and the vast amount of information – tyre pressure, speed, incoming delivery schedules, even the weather – that could be used to make the project tick ever more smoothly. The industry has been obsessing over how to best use technology such as telematics to coordinate construc- tion projects for at least two decades but the next step could be the biggest yet. The much uttered but frequently misunderstood Internet of Things (IoT) - the all-encompassing concept of how machines, devices and vehicles loaded with sensors and electronics can share data over a network – promises to tie entire jobsites together in a way that the industry is only just beginning to realise. Even a company with the resources of Caterpillar, the world’s largest equipment producer, has had to look for outside inspiration as it tackles the challenge of how this will work in practice. // Machinery Telematics

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construction business news me // June 2017 // 61 Enter Uptake, a Chicago-based data analytics firm, which is coming at the problem from the other side. Startlingly, Caterpillar is its first official client (apart from renewable energy company Berk- shire Hathaway Energy others remain under the radar) but the start-up is going places fast. Already valued at $2 billion, the company is rated as one of the Windy City’s fastest growing tech companies, and is working with, what it describes as, iconic names in a diverse range of sectors including agriculture, energy and healthcare. Its work with its fellow Illinois-based machine maker client is, for now, the one it most wants to talk about. Trevor Mecham, vice president of construction and agriculture at Uptake, explained that the construction industry has much to gain from using data to optimise manufacturing, maintenance, logistics and operations. “It’s certainly in the billions of dollars,” said Mecham. “Rather than a one-size- fits-all solution, we are partnering with Caterpillar and other companies to build predictive analytics solutions that solve challenges unique to the industry.” His colleague Bradley Joseph, presi- dent of business ventures and blogger on Uptake’s site, uses a term familiar to the world of big data houses called collaborative disruption to describe the company’s model for working with the behemoths that straddle some of the world’s biggest industries. “Collaborative disruption is the way to make a digitisation partnership truly impactful,” he said. “In this model, digital expertise meets deep industry experience. And the partners co-create real-world solutions at every step of the innovation journey. It brings together players from multiple industries and areas of expertise. It allows companies and their partners to innovate across a shared ecosystem and align solutions to real-world problems. And to do so faster, with deeper impact, and greater sustainability.” Uptake believes the construction industry with the commoditisation and decreased costs of telematics, both in terms of hardware and connectivity, could save billions of dollars and usher in an era of new efficiencies in opera- tions and capital management. Its studies of the US construction industry have highlighted a slowness to adopt telematics and the so-called industrial IoT due to several factors that will ring true the world over including a downturned economy and a glut of used equipment that has slowed the purchasing of new machines. However Uptake feels there are now signs that this is beginning to change and is keen to help Caterpillar and oth- ers to start taking control of data-related technologies. The company identi- fies a recent push from the OEMs and equipment associations to standardise hardware and information throughout the industry, combined with the decreas- ing cost of telematics and connectivity equipment, as a signal that it is, “on the cusp of generating what could amount to billions of dollars worth of increased uptime, better equipment utilisation, and optimised workflow processes and operations.” Likewise Caterpillar wants to ensure that it takes a leading position as the industry moves to an era of data-driven construction. Seeing the benefits of us- ing data to predict repairs and manage equipment on-site CEO Doug Oberhel- man has previously stated that he fears that it could lose its dominant position if it fails to adapt. “If we don’t do this, somebody else will,” he told investors after revealing the company was investing in Uptake to fund development. “We decided that maybe we better disrupt ourselves - in our own way - before somebody does an Uber to us.” Using data to increase efficiency and drive revenue for the construction industry could be a real game changer. For example, sensors on a piece of The data gained from construction can be as specific as the tyre pressure on a single machine, or as general as the schedule and budget of an entire project”

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// construction business news me // June 2017 62 // Machinery Telematics equipment could alert owners to a maintenance need. The equipment is then taken offline for a scheduled repair and it’s sent to a shop with a waiting mechanic that specialises in the repair and already has the needed part. Back at the jobsite, another piece of equipment has been scheduled to temporarily fill in. The time and hours saved on just one repair are significant. For Uptake, an example like this barely scratches the surface of what is possible. When data analytics becomes prevalent across the industry, its uses and effects could be staggering, it ar- gues. Contractors could know just how long a piece of equipment can be oper- ated before a repair is needed, down to the hour. Daily job site data gather- ings, such as weather, can affect job site preparation and labour. Data can opti- mise job site schedules; manage fleets of equipment, including their uptime and Current linking from Cat At the recent ConExpo event in Last Vegas, Caterpillar launched its new Cat Connect hardware and software to enable equipment managers to connect all of their assets —from the largest earthmover to the smallest generator, and including both light and heavy-duty trucks and utility vehicles. New Cat Product Link technologies connect any brand and type of equipment, powered or non- powered, and all report through a single system called VisionLink. The new technologies offer multiple communications channels — mobile, satellite and Bluetooth—to best match the type of asset and the needs of the user. And the systems are designed for easy installation using plug-and-play technology and apps for mobile devices. Battery backup for machine-powered devices and long-life batteries for units on non-powered assets help ensure reliable operation. The new Product Link device for monitoring production machines has scalable features that enable increasing data collected as needed — from machine hours and location through machine health parameters and production numbers. In contrast, a new tracking device for non-powered assets, such as attachments and trailers, reports location only. The device uses Bluetooth technology to connect with VisionLink, which enables managers to monitor equipment remotely using their smart phones, tablets and desktop computers. The new truck monitoring hardware is designed for retrofitting all brands of light and heavy-duty trucks, including pickup trucks, service trucks and materials haulers. Using mobile technology, the system can provide information to enhance driver safety and to assist both production and maintenance managers.

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construction business news me // June 2017 // 63 utilisation; dealers and rental houses can improve logistics and service. Compa- nies can increase equipment utilisation and decrease downtime for themselves and their customers. Construction schedules can be shortened; workforces could be optimised day-by-day; project management could be transformed. “The data gained from construction can be as specific as the tyre pressure on a single machine, or as general as the schedule and budget of an entire project,” Meacham explained. “Nearly every piece of the construction ecosys- tem can generate usable data that leads to patterns, and those patterns can lead to predictions that companies can trust.” The Uptake platform gathers both historical and real-time data, and then combines it to be analysed and provide actionable predictions to its users. Re- sults are then fed back into the software platform to further refine and validate its accuracy. This information includes condition monitoring, workflows, logis- tics fleet management and other streams, such as weather and event-specific information. “To be successful in construction, you really have to know the industry from the ground up,” Meacham said. “The biggest reason I joined Uptake and think the company will be successful is that we have decades of experience in the space. Sure, we have lots of PhDs and people who specialise in data analysis, but unless we can provide first-hand knowledge of the challenges and oppor- tunities that are unique to this industry, we won’t be able to achieve the kind of large-scale transformation we’re after. He continued: “In the short-term, it’s all about awareness. Lots of companies in construction know that the power of data and telematics will enable them to work better, faster and longer, but right now, it’s ‘how’ will this happen and ‘when’ will there be an impact. In the long-term, it’s about transforming the industry. We know there are billions of dollars to be gained from harnessing the power of data. Over the next generation, this industry will see radical change.” We decided that maybe we better disrupt ourselves - in our own way - before somebody does an Uber to us”

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// construction business news me // June 2017 64 // Vehicle Safety MAN Truck & Bus Middle East is putting safety first as it enters into an exciting partnership with one of the world’s most advanced trailer producers A Safe Combination

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construction business news me // June 2017 // 65 T he past year has seen MAN Truck & Bus Middle East make con- siderable progress in its effort to raise standards in road safety through a range of initiatives. A newly announced deal with Schmitz Cargobull complements its emphasis on introducing some of the industry’s best engineering ex- pertise into Middle East fleets, says Franz von Redwitz, managing director, MAN Truck & Bus Middle East. “We are fully committed to continuing to offer a full range of services that demonstrate the very best of German engineering and proven safety and comfort,” he comments. MAN Truck & Bus Middle East may be one of the fastest-growing commercial vehicles brands in the Middle East but it is notable for its dedication to improving driver and road safety. At the heart of its product development are the networks of international competence centres and plants in Germany which are continually analysing the performance of vehicles and examining customer feedback on a global scale to ensure it maintains its reputation for robust, reliable, high-quality products. Likewise, Schmitz Cargobull, which manufactures over 50,000 trailers and truck bodies annually at its own German-based competence centres, also serves companies worldwide in areas such as general cargo, refrigerated transport and construction. Franz von Redwitz adds that the partner- ship draws together two companies that share the common goals of increasing safety in the region as well as the quality of their products and services. “We wanted to partner with a top qual- ity German brand as it ensures the safety of our customers. Schmitz Cargobull is a globally-recognised trailer company that, like us, is also committed to expansion across the Middle East. This deal shows we are investing in quality products that can be tailored and personalised based on customer requirements,” he says. Improving road safety is one of the highest priorities at MAN and the company has developed an array of technologies for its vehicles, as well as training courses, such as its hugely successful ProfiDrive programme, with the aim of reducing ac- cidents and fatalities. Since launching its safety campaign in the UAE towards the end of 2016, MAN Truck & Bus Middle East has also contin- ued to support the targets set out by the UAE Vision 2021 road safety programme, a national effort to lower accident rates and fatalities. It has formed a strong work- ing relationship with Abu Dhabi Police, helping to instruct the public and private sectors with training and insight into the latest technology that can save the lives of drivers and other road-users. Together with Schmitz Cargobull, the company can now offer arguably the safest range of truck and tipper trailer combinations available in the market with features such as MAN’s electronic braking system (EBS) and anti-lock braking system (ABS) as standard. Fleets, heavy haulers and construction contractors will also be able to work use the expertise of both companies to create the ideal vehicle for their requirements. “We are partnering up to provide top German quality solutions in the market. The trucks and trailers will come with ABS and EBS brakes making the combinations a safe solution on the UAE roads.” As its range of products and services expands MAN Truck & Bus Middle East is also investing in its facilities and network across the Middle East. The company opened its new headquarters in Jebel Ali Free Zone (JAFZA) last month and for the first time its operations, new sales and training teams are now housed with its successful outlet for used commercial vehicles, MAN TopUsed Center. According to Franz von Redwitz, the move makes sense for the company and for its customers and will boost its grow- ing momentum in the region: “MAN Truck & Bus Middle East has moved to the new location in order to be linked with our TopUsed team. This initiative brings the entire team together in order to provide a full range of services, and sufficiently support importers and users across the Middle East." He concludes: "We are focused on the Middle East market and our investment in new products and facilities proves our long-term commitment to expansion across the region.” This deal shows we are investing in quality products that can be tailored and personalised based on customer requirements”

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// construction business news me // June 2017 66 // Supplier News Steel piping Global steel pipe producer, Interpipe has launched an online service that securely verifies its pipe products and reduces counterfeiting. Labels are each imprinted bundle, customers just have to scan the code via their smartphones. If the pipes are genuine, the consignee will be redirected to the webpage with details such as the vol- Interpipe launches service to fight steel counterfeiting with a QR code with en- crypted details unique to the customer order. Every code is linked to the company’s data- base of shipped orders. To check the origin of the ume of products, the number of inspection certificate, date of shipment and heat number. Otherwise, the customer will be notified about the possibil- ity of counterfeiting and pro- vided with the contact details for the regional sales office to verify the supply. Andrey Burtsev, Com- mercial Director for Middle East, Africa and Asia mar- kets, Interpipe, said: “QR- codes on these pipe bun- dles will be a very effective first step to mitigate coun- terfeiting. This easy-to-use and technically advanced tool allows our customers to verify the origin of the bundle in just one click.” Access to such an online verification service that tracks pipe origin provides an onsite check of the bundle origin for both distributors and end-us- ers. The service is part of In- terpipe’s extensive campaign to defend its brand and secure anti-counterfeiting measures around the GCC. Leminar Air Conditioning Industries, a specialist in HVAC duc- twork manufacturing in the region, has won an International Safety Award from the British Safety Council. The International Safety Awards, which is now in its 59th year, recognise organisations from around the world which have demonstrated to the scheme’s independent judges their commitment to preventing workplace injuries and work- related ill health. Mike Robinson, Chief Executive of the British Safety Council, congratulated Leminar on their success in winning an In- ternational Safety Award 2017: “By celebrating and sharing the achievements of the winners of the International Safety Awards, we encourage businesses all over the world to follow their lead and place employees’ health and safety at the heart of their business.” Dipak Bhadra, General Manager, Leminar Air Conditioning Industries, said: “We ensure that every single one of our work- ers is provided with all the necessary safety gear and there is no compromise on health and safety standards. We are proud to note that since our new facility was opened in December 2015, there have not been any safety incidents till date.” Leminar is one of the largest manufacturer of HVAC prod- ucts ranging from Sheet metal GI ducts with CGF 1 type flange system, Fire Rated ducts, Spiral round duct, Sound Attenua- tors, Acoustic Louvers, Volume Control Dampers, VAV Boxes, Fire Dampers and other accessories. Leminar wins International Safety Award

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construction business news me // June 2017 // 67 Water technology Water solutions Water technology specialist, Xylem has opened a new of- fice in Saudi Arabia as part of its $35mn investment in the Middle East and North Africa (MENA) region. Located at Al Annod Tower on King Fahd Road in Ri- yadh, the new office adds to Xylem’s other recently opened facilities in the region including a manufacturing plant and rental and services business in Dubai, as well as an office in Doha, Qatar. Vincent Chirouze, regional director, Xylem Middle East and Africa (MEA), said: “The opening of our Saudi Arabia mental authorities in Kuwait,” said Morcel Burjas, Senior Area Manager, Wilo Middle East. “This is also a result of the highly efficient sales and aftersales services of our part- ner Al Madadd throughout the history of our cooperation.” He added: “We have set an ambitious business develop- ment strategy that aims to Xylem opens new office in Saudi Arabia Wilo pushes water solutions in Kuwait office is an important mile- stone for our regional invest- ment and supports our long- term strategy of providing sustainable water technology solutions to help solve the re- gion’s water challenges. The new office enables us to be closer to our customers and develop smarter, bespoke solutions that fit their unique needs, which also allows us to increase our capabilities. “The new Saudi Arabia of- fice extends our legacy of providing the same high-qual- ity service and products our partners and customers have come to expect from Xylem.” cover all segments of the Ku- waiti market. Our efforts will not be limited to the govern- mental sector, as we look for- ward to provide all end users from both government and private sectors with Wilo’s latest and state-of-the-art Ger- man technologies that ensure providing the best-in-class clean water and waste water services. With the high end solutions we provide, we are confident that we will be able to implement our strategy within a short time span.” Kansai Paint is aiming to open up to 50 new distribution centres in the coming year across the UAE, Saudi Arabia and Qatar as it bids to tap into the $3.6bn coatings industry in the region. With over 1,000 employees in the Middle East, key markets in the GCC for Kansai Paint are KSA, which accounts for 35 per- cent of its business in the region, followed by the UAE (23 per- cent), with the primary business segments being architecture coatings (68 percent) and protective coatings (34 percent). “Kansai Paint is seeking to build its position in key strate- gic markets in the years to come, which includes the MENA & CIS markets,” said Hiroshi Ishino, President and Represen- tative Director, Kansai Paint. “We are committed to investing what is needed in order to achieve that ambition. “The MENA & CIS region has tremendous potential, and with our strong presence already in the market, we will work hard to contribute to society by providing prod- ucts and services that satisfy the high expectations of our customers in the region.” Ishino, who has been leading Kansai Paint since 2013, was in Dubai for the company’s annual sales meeting. His visit follows the launch of its first design centre in Jeddah. In the UAE, Kansai Paint has also refurbished its Umm Suqeim Design Centre and has set up a new paint store in Al Ain. Kansai Paint set to expand in the GCC for Housing Welfare; and the Ministry of Defense – Military projects engineering. “Our long term relationship with a leading local distributor such as Al Madadd in Kuwait, and the alignment of the vi- sions of both the companies were the cornerstone of our endeavors to offer Wilo’s high-tech solutions to govern- Wilo Middle East, in coopera- tion with its local distributor in Kuwait Al Madadd Trading & Contracting Co., organised an intensive week of in-house seminars last month as part of its plans to offer water solu- tions to key governmental en- tities in the country. The German company or- ganized four seminars that covered four governmental entities in Kuwait namely: the Ministry of Public Works; the Ministry of Water and Elec- tricity; the Public Authority

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// construction business news me // June 2017 68 // 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 manufacturers and dis- tributors of construction goods & services to showcase their products, network and do business with Kuwait’s biggest buyers in a professional 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, attracting 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 oppor- tunities to promote 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. Taking 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 // June 2017 70 // Editor's pick MEED: Private sector will be a key driver of opportunity in 2017 Construction outlook improves despite cuts T he GCC construction market will continue to be challenging in 2017 due to ongoing uncer- tainty surrounding government spending, but the outlook is brightening, according to Middle East business intel- ligence service MEED. The region still offers significant opportunities for construction compa- nies despite the slowdown in project spending, MEED says in its Outlook for GCC Construction 2017. However the report warns that a fall in the volume of new opportunities coupled with increased uncertainty about proj- ect timelines will see the construction market further hardening in response to increased competition. The report says that the region’s stron- gest markets over the past 12 months were Dubai, Kuwait and Bahrain, which saw its second-best year for awards since 2007, thanks to the financial sup- port of its GCC partners through the Gulf Development Fund. Approval of the main contract for the expansion of Kuwait airport took that market to an all-time high of $12.2bn of project contract awards in 2016, while the start of work towards Expo 2020 in Dubai enabled the UAE also to record an increase in awards in 2016. Dubai recorded the lion’s share of the project activity in the UAE in 2016, ac- counting for 72 percent of all construc- tion and transport deals in the country, while project spending fell sharply in Abu Dhabi. Elsewhere in the region however, the fall in oil prices since mid- 2014 has had a profound impact on the construction market in the GCC. With government revenues halved, ministries and other client bodies have had strict limitations imposed on capital spending. This has resulted in project delays and payment arears, while construction and transport con- tract awards have dropped in the GCC for the past three years. The worst performing countries were Saudi Arabia, which saw a 62 percent drop in contract awards, followed by Qatar and Oman. Delays in payments from government clients were a huge problem in Saudi Arabia, Oman and the UAE, affecting the cash flow of contrac- tors and forcing thousands of layoffs. The recovery in oil prices in 2016 has eased some of the pressure on govern- ment finances, while the increased pace in the roll out of economic reforms will see an improvement in confidence as well as an increase in new forms of project model, such as public private partnerships (PPP). All GCC governments want to in- crease private sector investment to ease the burden of capital spending on the treasury and this will create new op- portunities in the year ahead. Govern- ments have been taking important steps to develop new revenue streams as well as tapping debt markets, which will help clear up payment arrears. Saudi Arabia says it plans to double infrastructure and transport spending this year. Its Vision 2030 programme provides a long-term vision for eco- nomic development while the National Transformation Programme has set economic strategy up to 2020 and the coming three years will be all about implementation. But, according to the Outlook for GCC Construction 2017, the kingdom must first establish proj- ect management offices which could delay any recovery. Considerable risks remain Capital spending will remain constrained and the success of PPP has been limited in the past, so there will be many new challenges to address, the report says. “There is no doubt that the worst is behind us for the region’s construction market,” says MEED editorial director Richard Thompson. “The sharp cuts to spending in 2015 and 2016 across the region, but particularly in Saudi Arabia, Qatar and Abu Dhabi has been very painful for the GCC construction industry. But the recovery in oil prices and the implementation of reforms means that we will see things improving throughout 2017.” “Contractors should still be prepared for a challenging year however,” says Thompson. “The reform programme will take time to kick in and while we can expect to see key projects moving for- ward this year, there is still considerable uncertainty about delivery timelines.” There is no doubt that the worst is behind us for the region’s construction market”

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