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October 2015 THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS A growing market at the Gulf’s back door is giving companies a reason to map out a plan of action for tackling Africa A report on Qatar’s record breaking infrastructure projects that will pave the way for the state’s next wave of growth An analysis of the optimistic side of plunging oil prices and economic uncertainty in construction Experts discuss the role of greenwashing in Middle East’s sustainable construction industry

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construction business news me October 2015 2 NEWS OHSAS 18001 certified ISO 9001, 14001 and 130+years of project experience LEED Platinum, LEED Gold and LEED Silver Capability End to End Integrated Solutions Pioneering Engineering Construction since 1881 www.drakescull.com 700+ Projects Delivered For over 130 years, Drake & Scull International PJSC has been shaping skylines and transforming the lifestyle of communities around the world. Drake & Scull is an industry leader, with a proven history of delivering more than 700 projects through its General Contracting, Engineering, Rail, Oil & Gas, Water and Wastewater Treatment and Infrastructure development business streamlines across the region.

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construction business news me October 2015 3 28 INTO AFRICA A growing market at the Gulf’s back door is giving companies a reason to map out a plan of action for tackling Africa Editor’s Note news in person Peter Vogel, director of doka Middle East, talks about innovation as an art of problem-solving and making construction processes more efficient, sustainable and safe analysis shivram mukherjee writes about energy consumption trends in the middle east to suit high levels of power demand Joanne bladd analyses the optimistic side of plunging oil prices and economic uncertainty COUNTRY FOCUS A report on qatar’s record breaking infrastructure projects that will pave the way for the state’s next wave of growth Real estate news update of the latest project launches at cityscape global 2015 Matt Dadd writes about how new mall developments would draw tourism from the gcc and internationally to dubai 6 8 18 22 24 34 40 44 cover story 34 28 contents

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construction business news me October 2015 4 S U B S C R I B E c o n t r i b u t o r s subscriptions@bncpublishing.net Managing Director Walid Zok walid@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Director Wissam Younane wissam@bncpublishing.net Group Publishing Director Diarmuid O'Malley dom@bncpublishing.net Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818 Group Editor Melanie Mingas melanie@bncpublishing.net Editor Lorraine Bangera lorraine@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Sales Manager Mostafa Abdo mostafa@bncpublishing.net +966 56 6695 333 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 Stuart Matthews Marlow McGuinness Ltd ------- Joanne Bladd technology dr asif sharif, regional director of conject, explains that not all project collaboration solutions are built the same PROJECT update Dmcc along with as+gg unveil burj2020 district at this year’s cityscape global SUSTAINABILITY Construction Business News ME speaks with sustainability experts to discuss the role of greenwashing in Middle East’s construction industry gcc governments are imposing new standards to minimise greenhouse gas emission and limit resource depletion. Construction companies can play a direct role in this process Q&A As the uae massively invests to improve its healthcare sector to match world leaders, ceo of enova alexandre mussallam speaks with construction business news me about the current challenges faced in energy and facilities management COMMENT Edward mccluskey, partner at arcadis, analyses the common construction disputes in the region and discusses how to handle them Suppliers Event preview save the date editor’s pick 46 48 50 54 58 24 60 62 64 66 66 CONTENTS 48

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construction business news me October 2015 5 Factory and Headquarters: Saih Shuaib - 4 | Dubai Industrial City | P.O. Box - 62182 | Dubai | United Arab Emirates | Tel: +971 4 3687600 www.caparol.ae facebook.com/caparoluae twitter.com/caparoluae linkedin.com/company/caparol Indoor Air Quality is a growing concern in today’s world, with Formaldehyde being one of the largest. Introducing CapaCare AirPurify with CapaCare AirPurify is a revolutionary paint fortified with Formaldehyde Conversion Technology. The unique technology helps convert toxic Formaldehyde emissions into harmless water vapour ensuring that indoor air is fresh and safe to breathe. Protect your friends and family today, visit: www.caparol.ae/airpurify Let fresh remain fresh with CapaCare AirPurify

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construction business news me October 2015 6 NEWS Africa Rising Once deemed as a “hopeless continent” by the Economist, Africa has had a defi- nite turnaround in the last two decades. Endowed with bountiful natural resources such as oil, gas and uranium, agricultural commodities, and water, it was only a matter of time before the potential would be realised. Consisting of the fastest growing econo- mies in the world, today it is appropri- ately associated with being termed the continent of the future. The International Monetary Fund’s 2014 World Economic Outlook report states that six of the 10 fastest growing economies are in Africa: Mozambique, Rwanda, Angola, Nigeria, Chad, and Ethiopia. The GCC has historic, economic and cultural ties with Africa dating back cen- turies. After a long silence in the 1990s and 2000s, the GCC is finally partaking in a string of potentially highly lucrative partnerships. China for one seems to have recognised Africa’s potential with increas- ing investments in construction from 19% in 2013 to 31% in 2015. According to the Dubai Chamber of Commerce and Industry, annual GCC investments to Africa are expected to aver- age $5bn in the coming years. Many fac- tors work in favour as both parties could reap benefits from mutual partnerships. The UAE specifically has made an in- creased effort to work with African na- tions and local newspaper Gulf News re- ported that Dubai’s trade with Africa has increased to $25bn in the last decade. Arqaam Capital’s GCC-Africa Investors Conference in Abu Dhabi on September 14, 2015 attracted companies from across the Middle East including Etisalat, DP World, Damac, Depa, KIPCO, Emirates NBD, and NBAD. Riad Melti, CEO of Arqaam Capital, explained that the African continent presented a mixed outlook, highlighting that while some non-oil economies were faring pretty well, commodities-driven economies were struggling with slow growth and weakening currencies. There are challenges – delays in client decision making can cause projects to overrun on time and budget. The quality of materials can vary wildly from one area to another and there is lack of consistent labour supply across the continent. Africa can only rise if its foundations are strong. Prioritising improvement region by re- gion, PwC says East Africa must work to improve project finance and its regu- latory environment; the west must work on procurement and scheduling; and the southern countries, risk management and upfront planning. According to Deloitte’s African Con- struction Trends Report 2014, energy and transport are key focus areas for invest- ment as Africa’s emerging nations move towards building better infrastructure. The report stated that though the num- ber of projects in 2014 (257) had signifi- cantly dropped since last year (322), the total value of the projects under construc- tion had increased to $325,828m from $222,767m. Further, 65% of energy and power projects under construction are renew- able energy projects, giving the nations a chance to begin with sustainable develop- ment from the start. editor’s note Construction activity in East Af- rica in particular shows strong diver- sification, with signs of a mature and competitive industry. Even though Dubai plans to position itself as a gateway to Africa, most GCC countries still see hindrances in political risks, instability and currency volatility. It is definitely a debatable choice. On one side, it could benefit the region tre- mendously if the investments pay off, working closely with African nations would be favorable geographically and culturally. However, with all the uncer- tainty about the risks it is up to each GCC nation to make the choice to dip or dive. Making its way through recent political struggles and the Ebola crisis, I personally think it would be a shame not to bet on a continent that has proven it can endure just about anything. Lorraine Bangera Editor

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construction business news me October 2015 8 NEWS The value of construction chemical sales in Qatar is forecast to grow at 13% CAGR, between 2015 and 2020, according to data released by research com- pay TechSci. The increase has been attributed to increased demand for housing, as well as construction of many infrastructure projects such as airports, subways, tun- nels, damns, highways, bridges, railway networks, power plants as a part of preparations for upcoming FIFA World Cup in 2022. “Post 2014, infrastructure sector is expected to pick up on account of vari- ous government initiatives, especially increasing construction activities for FIFA World Cup, 2022, and implementation of Qatar National Vision 2030 program. This push in construction sector is expected to boost construction chemicals market in Qatar over next five years,” said Mr. Karan Chechi, re- search director with TechSci Research, a research based global management consulting firm. The total value of construction contracts by the close of 2015, could be down $2bn following a dramatic decrease in oil prices. Data from Ventures Onsite, produced for The Big 5, states the total value of construction contracts last year stood at $196bn, and this year is predicted to close at $194bn, although it will be some months before the numbers can be confirmed. The results come despite Ventures On- site predicting for much of the year that contracts would actually increase 4.5% this year, reaching $205bn by year end. The drop is largely being attributed to the drop in oil prices. Andy White, the vice president of The Big 5 show organiser dmg events ME, said: “A lot has been said about how oil prices might affect construction markets. But each of the GCC nations has con- tinued to invest heavily in infrastructure such as housing and healthcare. “Kuwait has more than trebled its con- tract awards this year, the Saudi govern- ment has made it clear that it will contin- ue to invest, and the UAE has revealed more spectacular projects.” GCC construction contracts to fall $2bn As many as seven out of 10 projects in the region do not utilise project col- laboration technology, according to re- search conducted by Conject. In a survey of existing and prospec- tive clients, the firm discovered that a mere 30% of projects in Qatar and simi- lar numbers in other GCC countries fail to benefit from collaborative software. Writing for Construction Business News ME, Conject GM and regional director, Dr. Asif Sharif, cited such ex- cuses as cost, duration of project and necessity for physical documentation in addition to digital. Speaking specifically about invest- ment costs, he said: “The level of in- vestment could be as little as 0.5% of the overall project value, so in real terms this might be considered a small investment, capable of delivering con- siderable cost and time savings on the project particularly if there is a dispute on the project. “In addition, cloud based collabora- tion solutions provide huge flexibility to the user, easily enabling them to ramp up or scale down usage in line with the user community, in other words matching the software re- quirement to the stage and profile of the project.” 70% of projects do not utilise project collaboration systems 13% CAGR construction chemical growth for Qatar Share of projects across the GCC Saudi Arabia - 44% Qatar - 11% UAE - 31% Kuwait - 6% 44 31 11 6 %

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construction business news me October 2015 9 whether these will be revoked. The ban on new contracts will last at least until legal ac- tion against the group has been concluded, according to reports by Reuters. The contractors insurers, United Cooperative Assurance (UCA) feel 2.5% as the group began its claims procedure following the accident on September 11, 2015. Saudi Binladin Group sees all contracts suspended Saudi Binladin Group will keep its existing contracts but will not be awarded any further work from the Saudi Arabian Government following the crane col- lapse in Mecca last month, which killed more than 100 people and injured more than 200. While existing contracts are currently under review by the Finance Ministry, no decision has been made on Demand for new hotels, retail, com- mercial and education facilities, as well as hospitals, has increased the value of interior design contracts to $7.98bn, preceding last year’s total of $7.35bn. However, according to the organ- isers of the Leaders in Design MENA Summit, owners and employers on the other hand are suffering with what is known as “decision overload.” This is caused by being faced with too many options, such as the design style, cost, time and many other speci- fications they have to sift through in order to find the one they have been searching for. This is not bad news for designers and architects hoping to develop some clients in the region as there will always be someone looking for a different style and offer to what to has previously been showcased to them. There are plenty of opportunities out there in this sea of business but it takes some networking and recommenda- tion to get designers the kind of deals they are looking for and not just swim- ming alone in the deep. Leaders In Design MENA will take place in Dubai, from November 15. $7.98bn design projects confirmed for region Construction in Mecca

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construction business news me October 2015 10 NEWS Iranian companies are set to construct dams in Oman according to Iranian En- ergy Minister Hamid Chitchian, Mehr News Agency reported. Oman’s Minister of Regional Munici- palities and Water Resources Ahmad bin Abdallah bin Muhammad al-Shuhi met with Chitchian in Tehran to discuss potential opportunities to work togeth- er. Chitchian referred to it as a positive atmosphere of cooperation between Iran and Oman. He said: “It has been decided to form a technical committee to investigate possibilities of joint col- laboration with Oman in details.” The said committee would set the stage for the presence of Iranian com- panies in Oman for the dam construc- tion. The minister said that majority of the negotiations made with Oman focussed on water resources studies and management. “The two sides also agreed to exchange experiences in the field of water resources, studies, rules, and regulations.” Al-Shuhi added: “We are seeking to use Iran’s experiences in terms of dam construction and transmission lines on the basis of extensive cooperation. “In addition to Iran’s Ministry of En- ergy, we are also interested in Iran’s private sector companies to carry out projects in Oman.” Iranian companies to construct dams in Oman Colliers International released its com- prehensive report, The Greater Cairo Real Estate Market Overview, in Sep- tember 2015. The report, which high- lights the latest trends in Greater Cairo’s residential, retail, hospitality and office segments, indicates a strong perfor- mance and positive outlook across all sectors owing to increased consumer and investor confidence as economic stability returns to Egypt’s key market. Ian Albert, regional director at Collier International said: “Over the last four years we have seen a palpable change in investor appetite towards the Cairo real estate market. The infrastructure and real estate megaprojects driven by the government and international investors have undoubtedly had a positive impact on the economy. These projects have the potential to signifi- cantly change the economic landscape of Egypt, and yield additional benefits if managed effectively.” The report provides a brief overview of three national mega projects: the Suez Canal Expansion, Cairo Airport City and New Capital City, all of which it anticipates will help drive demand for additional real estate products. Investor confidence boost for egypt DC Pro Engineering UAE earned its second consecutive ‘District Cooling Consultant of the Year’ award at this year’s Asia Pacific District Cooling Con- ference held in Bangkok, Thailand. The award recognised the company’s continuing commitment to implement new and innovative district cooling technologies that address global warm- ing and climate change concerns. CEO of DC Pro George Berbari de- livered a presentation to conference delegates that championed Tri-gener- ation technology – a process where the simultaneous generation of elec- tric power is synchronised with photo voltaic energy to create waste heat and produce cooling. The technique, Berbari insisted, could result in sav- ings of up to 100,000 barrels per day in Thai oil imports. He said: “As part of our efforts to educate public and private sector en- tities on the advantages and benefits of district cooling in today’s ultra- modern urban centres, we ensure that our designs and recommendations are in accordance with international efforts to address the spectre of global warming and climate change.” DC Pro wins District Cooling Consultant of the Year George Berbari, CEO of DC Pro Engineering

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construction business news me October 2015 12 NEWS EGBC MEFMA panel debates fm and retrofit Trends Emirates Green Building Council (EGBC) along with Middle East Facil- ity Management Association (MEFMA), hosted a networking event focussed on the role of facility management compa- nies (FMCs) in the burgeoning retrofit market in the UAE and the importance of education and trained professionals in post-retrofit maintenance. The discussion was moderated by Khaled Bushnaq, vice chair of Emirates- GBC, with panellists including: Ali Al Suwaidi, board member of MEFMA; Stu- art Harrison, support services director of Emrill Services LLC; and K. Anbalagan, managing partner of Proleed Mechanical Engineering Consultancies. Key topics addressed included: training, retrofitting certifications and the importance of en- ergy auditors in building retrofitting. Bushnaq said: “Training and trained professionals play a pivotal role when it comes to post-retrofit maintenance and the continuation of preventive care implemented in any building. One of the key purposes of the joint network- ing event was to put the spotlight on the current situation of training within the in- dustry and identify next steps to follow with the aim to create a fully integrated facility management industry adequately equipped for the ‘retrofit revolution.’” The second discussion was on ret- rofitting certifications, and how ISO 50001 is emerging as an important certification in the commercial sec- tor where savings in energy manage- ment are almost guaranteed, such as in the UAE. Lastly, the panel discussed the im- portance of energy auditors as an essential component in the list of certified professionals needed for a building retrofit process and how FMCs can benefit from hiring certi- fied energy auditors directly on their team as opposed to outsourcing the auditing task. MEED’s fourth annual Qatar Transport Forum revealed that Qatar is has more than $40bn worth of planned transport projects in the pipeline. These include the expansion of Hamad International Airport (HIA) and Hamad Port, the Doha Metro and long-distance passen- ger and freight network, and the ex- pressway programme. Other projects showcased included the two additional container terminals at Hamad Port that would increase the $7.3bn project’s handling capacity to 6 million TEUs by 2020. The first phase of the megaproject, which in- volved installing more pre-cast blocks than the pyramids, is due to open at the end of 2016, according to Aecom’s programme director Tim Verdon. Qatar Rail’s chief of service delivery Andrew Tailor updated the forum on Qatar’s $20bn-plus integrated trans- port plan. A world record 21 tunnel boring machines are being used on the Doha Metro project, which so far has completed almost 50km of tun- nels. A total of 26,000 workers are working on the project, equating to more than 78 million man hours Qatar on track with more than $40bn worth of transport projects Qatar¹s Minister of Transport H.E. Jassim Bin Saif Al Sulaiti at the MEED Qatar Transport Forum in Doha. worked as of end of August. Work on the Lusail tram scheme is even more advanced, with four of the five stations completed, while the ten- der for the first phase design and build of the long-distance freight and rail net- work will be issued to contractors early next year. On the roads side, Eng. Nasser Al- Kuwari, manager of highway projects department at Ashghal, presented an overview of the $10.8bn express- way programme. The massive project, which involves 1,000km of new or up- graded roads, 240 major interchanges and 360 bridges, has already seen 43 major contracts awarded. A total of 15 contracts are either in the market or are being prepared, while a further 23 are in the planning stage.

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construction business news me October 2015 13 PIPELINES NOT PIPE DREAMS. Infrastructure development is critical to the growth of the economy. That’s why at HSBC, our award winning capital financing team provides bespoke and innovative advice, supporting your business in making the most of global infrastructure opportunities. With nearly 150 years of experience in supporting global businesses, including 65 years in the Middle East and North Africa, we can support your business vision for the future. See how we can help your business www.business.hsbc.ae/solutions Issued by HSBC Bank Middle East Limited, P. O. Box 66, Dubai, UAE. Regulated by the Jersey Financial Services Commission and Central Bank of the United Arab Emirates. CRN 150603 © Copyright. HSBC Group 2015. ALL RIGHTS RESERVED.

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construction business news me October 2015 14 NEWS Lifting of sanctions on Iran will lead to drastic changes as Iranian businesses open to regional and global markets, concludes the Opportunity Iran 2015 report by MEED, which reveals Tehran will sign $100bn worth of energy deals once economic sanctions are fully lifted. The main sanctions which include the United Nations, US and European Union will be lifted by the end of the year after a final assessment by the International Atomic Energy Agency (IAEA). After the lifting the sanctions, the report states that, large-scale investment in oil, gas and petrochemicals projects will be a top priority. Even though Iran has the fourth largest oil reserves and the largest gas reserves in the world, years of isolation from global markets has left the sector in need of modernisation. Iran aims to expand its oil sector in two phases; the first phase will see National Iranian Oil Company (NIOC) reviving its crude output to pre-2012 levels as sanc- tions relief opens up export markets; From 2020 onwards, Iranian crude ca- pacity is set to increase and investment will allow NIOC to deploy enhanced oil recovery (EOR) technology at its older fields, revive stalled field developments, and carry out greenfield developments at untapped assets. Tehran to sign $100bn of energy deals Kuwait Boubyan Island Development Construction Start: Q3 2007 Completion : Q4 2033 Est. Value $6,640m Client: Ministry of Public Works (MPW) Qatar Msheireb Development Construction Start: Q2 2010 Completion : Q4 2018 Est. Value $5,500m Client: Msheireb Properties Consultant: Multiple Saudi Arabia King Abdullah City of Atomic and Renewable Energy Construction Start: Q1 2016 Completion : Q1 2030 Est. Value $100,250m Client: King Abdullah City of Atomic and Bahrain Al Madina Al Shamaliya Construction Start: Q3 2014 Completion : Q3 2019 Est. Value $4,500m Client: Ministry of Works & Housing, Bahrain UAE Mohammed Bin Rashid (MBR) City Construction Start: Q2 2013 Completion : Q4 2023 Est. Value $64,724m Client: Dubai Holding / Emaar Properties Oman Muscat International Airport - Passenger Terminal Ministry of Transport & Communications Construction Start: Q3 2011 Completion : Q3 2016 Est. Value $1,826m Ventures Onsite reveals the top 30 most expensive construction projects of the last 20 years

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Saudi Arabia Finance Minister Ibrahim Alassaf has announced the govern- ment’s decision to cut “unnecessary” expenses, including some current projects, to compensate for low oil prices, in an interview with CNBC Ara- bia aired during his visit to Washing- ton D.C. last month. Alassaf said: “There are some projects like the ones that have been approved a few years ago and haven’t been car- ried out until now – that means such projects are not currently necessary and can be delayed.” Though the minister urged that proj- ects that are vital to Saudi’s future econ- omy such as infrastructure, healthcare and education projects would not be affected by this move. Reuters reported that according to In- ternational Monetary Fund and private analysts, Saudi Arabia will hit a budget deficit of $120bn or more this year be- cause of cheap oil. However, with finan- cial reserves over $600bn, it is not in any particular danger in the short-term. Alassaf was visiting the US capital along with other King Salman bin Ab- dulaziz Al Saud, King of Saudi Arabia, and other delegates to attend the 2015 Saudi-US Investment Forum on Septem- ber 4. The event aimed to highlight many opportunities that are open for Saudi and American business ventures. Saudi Arabia to cut “unnecessary” expenses MADE IN UAE www.intermetal.com www.verdadoors.com Dubai, UAE Tel: +971 4 884 1650 Email: sales@verdadoors.com MANUFACTURING QUALITY DOORS, KITCHENS & INTERIOR FIT-OUT

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construction business news me October 2015 16 NEWS

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construction business news me October 2015 18 InnovATive drive Peter Vogel, director of Doka Middle East, speaks with Lorraine Bangera about innovation as an art of problem- solving and making construction processes more efficient, sustainable and safe IN PERSON

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construction business news me October 2015 19 W ith over 150 years of experi- ence, formwork- provider Doka prides itself in finding solu- tions for the most complex construction projects in the world. Founded and still owned today by the Umdasch family, Doka has proven to be a globally recog- nised brand in construction. Its projects have spread across continents with the most eminent ones to be found here in the GCC. Some of those projects include Dubai’s Burj Khalifa and the soon-to-be world’s largest hotel Abraj Kudai Hotel in Mecca. “Innovation is the key to our suc- cess,” says Peter Vogel, regional director of Doka. “Our core aim is to constantly adjust our services in line with customer needs, while also guaranteeing the high- est safety requirements.” “Innovation is simply creating solu- tion,” he urges. “Solutions which are highly efficient, sustainable and safe.” He adds: “It is one thing to make working with formwork easier and save more time as a result. It is quite another to make working with form- work even more safe and therefore more cost-efficient. “As a market leader, we are obliged to constantly develop new concepts and systems to support our customers’ aim of improving speed and safety of the construction process. With our innova- tions, we keep ourselves always one step ahead of the competition.” A good example for such solutions is the Xsafe plus, a pre-assembled work- ing platform that can be folded and equipped with side railings for wall and column formwork. Vogel states that his company is con- sistently thinking outside of the box. “We are currently working on the Stra- tegic Tunnel Enhancement Programme (STEP) for Odebrecht in Abu Dhabi which required a special-purpose form- work solution, which we created and delivered. I think cases such as this make us add to our strength as form- work professionals.” Another recent innovation has been the Concremote system to measure concrete strength development. The system and all its results are based on the temperature of the concrete which is measured continuously. Concremote reduces striking times, optimise form- work solutions and of course visualises a lot of information about the concrete for the contractor. It is now used on various projects around the world, reaching from bridg- es and tunnels to high-rise towers and shopping malls. Vogel says that after its launch last year, consultants and con- tractors have provided positive feed Vogel’s three-point defi- nition of innovation: Highest Efficiency “Our innovations help to improve the speed of processes which tremendously reduce construction time, labour and consequently costs. Sustainability “Doka is conscious of its obligation to society, the environment, and its stakeholders. It deliberately invests in its employees, in measures and innovations for optimising resource consumption in minimising environmental impacts, and in nurturing its relationships with stakeholders.” Safety “Safety on the site is a great responsi- bility for all involved in the construction process. A professional approach to safety brings a number of significant benefits: less risk of accidents, higher efficiency from fast workflows, en- hanced employee morale, and a boost to your corporate image.” Damac Towers by Paramount

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construction business news me October 2015 20 IN PERSON back, particularly given Concremote’s cost and time saving attributes. Integrated innovation Innovation is a philosophy that has to be cultivated by people, something Vo- gel believes is only possible when every employee is encouraged to communi- cate ideas as part of a team. Where does innovation come from? While Vogel is busy managing the re- gional business from his office, he says that most of the ideas needed for inno- vation is developed on site. “Our development department moni- tors the progress along with the client, which helps begin the innovation pro- cess.” He points out that clients are the first ones to expose the company to a problem, after which his team hunts for solutions. “This is how we innovate and develop, through coming face-to-face with a problem.” The constant process of problem solv- ing doesn’t just exist among employees; it has been integrated through training and hiring who Doka considers to be the best professionals in the market. “Our employees are the reason for the company’s success. While the Doka Group is a family-owned business, in- trapreneurship is highly encouraged and supported. We invest in employ- Latest project review: Lusail pedestrian bridges Doka was hired to be a part of one of the developments at Lusail City development project in Qatar. The company is set to work with builder, FCC Construction-Petroserv JV, and supply pre-assembled formwork materials for two pedestrian bridges separating the islands. The bridge design resembles a necklace with interlocking ellipses with concrete decks suspended by steel cables attached to slender pylons. The two bridges are 90m and 100m long and built simultaneously. This means the quantity of the required formwork material is almost double. In order to provide for maximum efficiency in terms of construction time, the bridge deck formwork was assembled in advance. Pre-fabrication at Doka's pre-assembly service saves time and space on site and at the same time reduces costs. The finished systems were delivered just in time by way of special shipment and immediately ready for use. “Pre-assembly of formwork systems saves us time and ensures quality,” says Victor Gomez Lopez, the FCC’s construction manager. “This process made assembling the formwork sheets on the load-bearing tower quick and easy” The initial formwork was delivered in August 2013. In-situ concrete work for both pedestrian bridges were completed on-schedule by early 2015.

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construction business news me October 2015 21 ees and put in efforts to invest in their development.” Innovation and the GCC Vogel has worked in several countries over the last two decades, though he admits that he has been lucky to choose where he wanted to work. In the GCC, he has been active in Oman, Qatar and the UAE. He observes that the region’s con- struction sector has seen consistent growth over the past decade, with a spike in activity from 2005 till the eco- nomic downturn and in spite of this, the GCC has continued to grow, citing eco- nomic diversification as a key driver. For him working in the GCC is chal- lenging and exhilarating at the same time. “This region gives you the free- Projects within the GCC: • Burj Khalifa in Dubai, UAE • Damac Towers by Paramount in Dubai, UAE • Al Hilal Commercial Office Tower in Al Maryah Island, UAE • Msheireb Downtown Doha, Qatar • Lusail Bridge in Doha, Qatar • Aishti Mall Seaside, Lebanon • Muscat International Airport, Oman • Aqaba Port Terminal, Jordan • Sabah Al Salam University City, Kuwait • Golden Tower in Jeddah, Saudi Arabia Concremote dom to be creative and innovative.” Innovation has always been wel- comed with open arms in the GCC, in particular in the UAE. Some of the shifts in the regional market especially towards sustainability have predomi- nantly affected the construction market and we welcome such developments. As a company Doka has always priori- tised sustainability as one of its core val- ues, something that enables it to offer practical support to the UAE’s federal and municipal policies on sustainable construction. Success and pragmatism After 22 years of management roles in the construction industry, Peter Vo- gel joined Doka in 2008. He says that he is more than happy to be a part of the busy and challenging GCC market where construction activities are bountiful. Before joining Doka, he worked as a technical manager in a contracting firm and has extensive experience in the construction industry. While Vogel’s practicality and drive has helped him to successfully repre- sent a global brand in the region, it’s his insight that sets him apart from most directors. When asked for pearls of wis- dom, he shrewdly says; “When it comes to success it depends on how the indi- vidual looks at success.” He argues that success is often seen in two ways: long-term and short-term. Long-term success could be challenging but we prefer to be challenged. “Typically, our projects are amongst the most complex developments in the GCC.” If you haven’t heard of Doka, a drive down Dubai’s Sheikh Zayed Road is all it takes to see the numerous projects the firm is a part of. He explains that Doka has a sincere willingness to face challenges and pro- vide solutions. “We often invent new concepts of doing it.” In DOKA everybody is passionate about what we are doing. I’ve been in the company for eight years, and I can’t imagine finding a better company.” Vogel’s philosophy is simple. “The construction industry is pragmatic, therefore so are we.”

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construction business news me October 2015 22 In the wake of increasing focus on sustainability and the “go green” movement across the globe, the Middle East is also adapting its energy consumption trends to suit the high levels of power demand resulting from extremely high temperatures. Shivram Mukherjee reports Construction and Innovation in the UAE: An Outlook I t has been reported that innova- tive technologies and a construc- tion boom are driving growth in entire UAE. Dubai is set to invest AED4.5bn in ambitious real es- tate and construction projects to turn the emirate into “an innovation hub for global technology businesses and entre- preneurs.” The project will involve the construction of a massive new technolo- gy centre and the expansion of the Dubai Design District. It will also see Dubai become the focus of a new discussion about the importance of innovation and creativity. The current boom in the GCC’s con- struction sector has created lucrative op- portunities for the regional and interna- tional FM companies. Figures produced by the Dubai Statistics Centre in the first half of 2014, the UAE’s construction sec- tor made up 7.89% of the nation’s gross domestic product. Additionally, accord- ing to the Dubai Chamber of Commerce and Industry, the sector is expected to further contribute between 11 to 11.5% to the GDP from 2015 to 2021. Here are the latest Innovations in Construction. 3D Building Dubai is in line to build world’s first fully functional 3D printed building. This slat- ed move will establish UAE's position as global centre of 3D printing in construc- tion and design. UAE aims to deploy the latest technologies to improve people's lives and to develop its economy in line with the country's National Innovation Strategy and the vision His Highness Sheikh Mohammed bin Rashid. Experts estimate that 3D printing technology can reduce the production time of buildings by 50 to 70%, reduce labour costs by 50 to 80%, and can save between 30 and 60% of construction waste. These sav- ings translate to enhanced productivity, higher economic return, and increased sustainability. The “Office” will be approximately 2,000 sq.ft in size and will be printed layer-by-layer using a 20-foot tall 3D printer. All interior furniture, detailing, and structural components will also be built using 3D printing technology, com- bining a mixture of Special Reinforced Concrete (SRC), Glass Fiber Reinforced Gypsum (GRG) and Fiber Reinforced Plastic (FRP). This combination will make it the most advanced 3D printed structure ever built at this scale and the first to be put into actual use. The building is the result of a partnership between Dubai and WinSun Global along with lead- ing global architecture and engineering firms Gensler, Thornton Thomasetti, and Syska Hennessy. Shivram Mukherjee, is a senior consultant with First Climate (India) Private Limited and has been associated with Climate Change Sustainability Services since 2011. He holds a B.Tech Degree in Mechanical Engineering and a Master’s Degree in Energy Management. He has worked with Dubai Municipality (as a consultant) for a Greenhouse Gas Abatement Project registered under the Clean Develop- ment Mechanism for United Nations Framework Convention on Climate Change. Shivram Mukherjee ANALYSIS

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construction business news me October 2015 23 In addition to prototyping new tech- nology, the 'Office' reflects the latest input from experts and researchers in workplace design and the future of work. Located at a busy intersection in the heart of Dubai, the 'Office' is designed to bring together different professionals, commu- nity members, and experts through a mix of public events. The space is open and flexible, allowing for a range of uses and team sizes. It will also feature a small dig- ital fabrication facility and a 3D printing exhibition space. Using sustainable wood material in real-estate sector Using sustainable wood material in the GCC construction industry would help conserve natural resources and boost the global wealth of trees. He added sustainable wood is a topic that is domi- nating the regional construction sec- tor in line with governments’ vision of environment sustainability. The positive regional approach to- wards sustainability in the construction sector is a sign for the entire world that GCC countries are committed to preserv- ing natural resources, of which the wood sector is a significant part A series of seminars has been held on the utilisation of sustainable wood in construction sector which is being tailored for the regional market and the UAE in particular. Entities like Emir- ates Authority for Standardization and Metrology (ESMA) and Dubai Central Laboratory have discussed the local UAE standards in this field, while Dubai Mu- nicipality has organised two seminars on ‘Wood Sustainability’ and ‘Innovation in Sustainability’. The importance of wood sustainabil- ity is underlined by the fact that wood products require much less energy to be produced than concrete or steel, for example. An objective comparison of the energy needed to obtain, manufac- ture, transport and install building ma- terials for identical wood frame, steel frame and concrete houses demonstrates wood’s environmental superiority over alternative materials, leading to less us- age of fossil fuels and reduced air and water pollution. Although wood products make up a big chunk of all raw materials, its share of energy consumption during manu- facturing is very minimal compared to other raw materials. Results show that the manufacture of wood materials uses 53% less energy than steel and 120% less energy than concrete. Wood is the world’s only renewable building mate- rial. It satisfies the four basic principles of Green Buildings to minimise the en- vironmental impact of construction by minimizing use of energy resources and reducing pollution. Path Forward The UAE will mark 2015 as the ‘Year of Innovation’. The announcement came in line with the directives of President His Highness Sheikh Khalifa Bin Za- yed Al Nahyan. Sheikh Khalifa stressed the importance of innovation to the UAE’s strategy. The new innovation techniques in construction will pave way for UAE’s in- terim development and progress. It’s a primary tool to achieve Vision 2021 and an engine for the growth of distinctive skills and capabilities across the nation. The National Innovation Strategy will focus on fostering innovation in main sec- tors viz; construction, renewable energy, transport, education, health, technology, water and space. Thirty governmental initiatives are aimed to be taken within a three-year period in the optic of foster- ing innovations in these sectors, including new legislation, innovation incubators, in- vestment in specialized skills, private-sec- tor incentives, international research part- nerships and an innovation drive within government. UAE is surely moving in the right direction in achieving three pillars of sustainability within a short span of time. New law benefit innovation-based companies in TECOM Free Zone. Image courtesy of Victoria Barynova.

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construction business news me October 2015 24 Plunging oil prices and economic uncertainty have sparked jitters in the GCC construction industry. But there is good reason for optimism, say analysts. By Joanne Bladd Uncertain Times F or the GCC construction industry, August was an uneasy month. First was news of heavy losses at Dubai’s largest-listed contractor Arabtec; a first-half loss of AED1.3bn, prompting a 5.3 % slump in its share price. Then came one of the worst day’s trading in years on regional stock markets, triggered by China’s cooling economy and swelling alarm over plunging crude prices. Days earlier, global ratings agency Fitch had cut its outlook on Saudi Arabia’s economy from ‘stable’ to ‘negative’, while its counterpart Standard & Poor’s predicted an up to 20 % slide in Dubai property prices; a bellwether for the wider region. There was much news, fretted inves- tors, and most of it was negative. For contractors, some still nursing bruises from the 2008 financial crisis, fears were raised of a wider slow- down as Gulf states grapple with shrinking oil revenues and wider global instability. But while govern- ments may be reining in budgets crafted in a time of $100-plus bar- rels, the industry still has grounds for cautious optimism. “We are not in the same place we were in 2007/2008; that is quite clear,” says Farouk Soussa, chief economist for the Middle East, Citi. “Despite spending cuts, I think there will be a push in some construction, with transport and housing moving up the agenda. Any slowdown won’t be nearly as deep or as sharp as that seen previously.” There are clear difficulties. At the crux of market fears is the global fall in crude to less than $50 a barrel. The Gulf is sharply exposed to oil swings, with up to 80 % of regional governments’ income raised via hy- drocarbons. The Washington-based IMF estimates the price slump will translate into $380bn in lost export revenues for the trade bloc. While there is little doubt the GCC six are feeling the pinch, it is to varying degrees. Kuwait, according ANALYSIS

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construction business news me October 2015 25 to the IMF, is still set to post a fiscal surplus this year, and has more than trebled its contract awards. Bahrain and Oman, however, are squeezed: the pair require breakeven barrel prices of $127 and $102.6 respec- tively to balance their budgets. Fur- ther complicating matters is that oil markets are showing little appetite for a rebound. “I don’t expect to see a major gain, though I think there will have to be some movement as current prices are so low,” says Robin Mills, head of consulting at Manaar Energy in Dubai, and nonresident fellow, foreign policy, at Brookings Doha Center. The impending return of Iranian exports will not help matters, he notes. “We may well see another year of depressed prices, and only really see some kind of recovery after that.” In January, the IMF cut its growth forecast for the Middle East’s oil exporters to 3 % from the 3.9 % it projected in October. The GCC spe- cifically will have a collective deficit of 8 % of gross domestic product (GDP), it said in May. “I think there was initial hope oil prices would bottom out in the $60- 70 range, and [GCC governments] wouldn’t have to curtail spending too much,” says Soussa. “That hasn’t played out. Budget deficits have grown beyond what the Gulf states were initially expected to see, and there has been a belated realisa- tion that something must be done to consolidate public finances, put expenditure on a more sustainable path, and to raise non-oil revenues.” It is this spectre of austerity that has given rise to jitters in the construc- tion industry. With much of the GCC’s $194bn projects market backed by government cash – from the $32bn expansion of Dubai South, to Saudi Arabia’s railway plans - moves to trim budgets and rationalise spending on capital projects could have wider industry repercussions. “It is inevitable that spending will

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construction business news me October 2015 26 ANALYSIS as the $23bn Riyadh Light Rail Net- work, and the government-backed $67bn housing programme are of both economic and social impor- tance. According to the IMF, the kingdom needs to add some 180,000 housing units per year for the next decade, to keep pace with popula- tion demand. “Dubai at its peak was building around 50,000 to 55,000 housing units; Saudi needs to produce three times that amount consistently over the next decade, “ says Soussa. “That is not something Saudi will shy away from for budgetary reasons. It is a political imperative, and this shortage is more material for the construction industry than anything we’ve seen for the last decade.” Equally pressing are the Gulf state’s myriad transport projects, spanning from the Makkah Mass Rail Transit to expansion of its airport capacity. “Apart from the fact that these projects help enable diversification of the economy, if Saudi is eventu- ally going to cut subsidies on fuel, on energy, it needs to make public transport a cost-effective alterna- tive,” adds Soussa. In Qatar, the outlook is also rosy. Construction is the tiny emirate’s fastest-growing sector, with state spending set to reach $200bn to 2030, according to Qatar’s eco- nomic blueprint, spread over a raft of infrastructure schemes. Despite speculation around the future of the come down, and certain projects will be delayed or cancelled,” says Soussa. “I think it is also inevitable that you will start to see arrears in contracts build up, as governments face greater liquidity constraints. The overall environment is, I think, becoming more difficult.” OPEC kingpin Saudi Arabia has already put a spending review into play in nine ministries, and can- celled some hydrocarbon-linked projects. The UAE, the GCC’s second-largest economy, plans to slash spending by 4.2 % this year, a Central Bank report revealed in July. The same month saw the Arab state push through a politically tricky ruling to deregulate domestic fuel prices, reflecting a more cautious fiscal stance. The regional projects market has not been immune to the scale down. In August, a report by research firm Ventures Onsite forecast a fall in the value of GCC contract awards this year to $194bn, down $2bn on 2014. For much of this year, it had been expecting awards to rise by 4.5 %, hitting $205bn by end-2015. Still, the GCC states have built resilience - and that bodes well for contractors. Both the UAE and Saudi Arabia are cushioned by huge reserves, and sizeable sovereign wealth funds – Abu Dhabi’s alone is estimated to have nearly $800bn of assets. This makes it likely that spending on key projects will sus- tain. In Saudi Arabia, projects such The housing question Of the factors set to drive the construction market in the GCC over the coming years, few are as pressing as affordable housing. The marked short- fall of properties able to cater to the region’s large and growing young population, is both a social and economic concern, particularly when set against the backdrop of regional instability. According to a recent report from real estate consultancy JLL, the Middle East and North Africa (MENA) is short some 3.5 million affordable homes. For contractors then, the scale of the opportunity is enormous. “Governments around the region have started to allocate significant financial resources to encourage more development of middle-income housing,” says Craig Plumb, head of research at JLL MENA. “But more needs to be done. We believe there is a need to rethink the existing relationship between govern- ment and the real estate development industry.” In the UAE, some 39 % of households fall into the middle-income bracket, defined by JLL as having a monthly income of between $2,700 and $8,200. In Saudi Arabia, where the bracket spans from $1,600 to $5,400, it represents 62 % of households. These workers can afford to pay annual rents of up to $19,600, or mortgages on houses worth about $215,074. It is, by any measure, a ready market. “Many markets are now experiencing an oversupply of luxury product,” the report noted. “More developers are realising the importance of targeting the middle-income sector that was previ- ously largely ignored.” Governments also have a role to play in enabling the growth of this housing sector, by ringfencing land plots to sell at an affordable price to private developers, the report noted; on the condition that the subsequent housing is released to the market at pre-agreed rents and prices. “This form of public-private partnership incen- tivises the private sector to develop middle-income housing, while ensuring the end-user is protected,” the report said. Plans for the 7.8$bn upgrade of Dubai International Airport still have a green light

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construction business news me October 2015 27 2022 World Cup, Qatar has broadly maintained investment on related large-scale infrastructure projects. On a more micro level, Qatar’s Industry of Development Planning and Statistics (MDPS) reported more than 630 building permits were is- sued in June, a sign of the industry’s steady growth. Dubai, once worst-hit among the GCC states by the global financial crisis, has rebounded strongly; not- withstanding still-softening property prices. The emirate has a slate of mega-projects, ranging from Dubai Holding’s $6.8bn Mall of the World, to the $7.8bn upgrade of Dubai International Airport, keeping local and regional contractors on their toes. Critically, despite an estimated $143bn overhang of debt from the last fiscal crash, there is still appe- tite to buy Dubai debt. This, under- pinned by the city’s steady economic growth, means Dubai should have ready access to credit lines to finance its planned projects. “Despite the headwinds from low oil prices, lower regional liquidity and so on… the news is pretty fa- vourable for Dubai,” says Soussa. These macro conditions are perco- lating down to contractors. UK-based Carillion in August posted a 54 % leap in revenues within its Middle East construction services division, which spans operations in the UAE, Qatar and Oman. Profit was up by 43% a year ago. Laing O’Rourke, meanwhile, which downsized its Middle East operations dramatically in the wake of the 2008 crash, has said it is on track to more than double regional turnover this financial year, thanks to a streak of contract wins. Developers are also holding strong. State-owned Nakheel in Sep- tember inked contracts worth a com- bined AED2.4bn with three construc- tion firms, to build a residential and retail project in Dubai. More broadly, the first day of Cityscape Global, the region’s largest property show, saw the release of 11 real estate projects, worth upwards of $12bn. Lastly, there is the question of post- sanctions Iran. Though an economic wildcard, the looming return of Tehran to the global stage opens up a sizeable investment opportunity for contractors, following three decades of isolation. Foreign firms are already jostling The Louvre Abu Dhabi, a project by Arabtec Construction LLC to gain access to Iran’s 80m-strong population - and more broadly to a country with vast infrastructure needs; ranging from railways, to housing, to energy. Though Iran’s crude exports will worsen an existing glut - and put further downward pressure on prices – the Persian country represents a two-fold opportunity for contractors. Not only is there pent-up demand for construction within Iran’s borders; but Gulf countries – and particularly Dubai - are likely to play host to foreign firms seeking to tap this need, offering a payoff to their own economies. “For corporates wanting to reach into the Iranian economy, I think the platform they will use to do that will be Dubai,” says Soussa. “For the emirate, it means more inflow of population, it means more demand for housing and more demand for retail. Dubai’s economic model will be getting an additional and rather unexpected lifeline.” For the GCC construction industry, the future may not hold a return to the feverish boom years, but neither is there an impending bust. And, as with non-oil growth in the Gulf economies, slow and steady wins the day.

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construction business news me October 2015 28 construction business news me OCTOBER 2015 28 COVER STORY A growing market at the Gulf’s back door is giving companies a reason to map out a plan of action for tackling Africa

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construction business news me October 2015 29 F rom the streets of Addis Ababa, to the offices of Nairobi and the coast of Dar Es Salaam, a young population are learning, earn- ing and wanting more. In scenes played out across East Africa and the urban hubs of the wider continent, African cities are slowly becoming the economic powerhouses some say they have been destined to be for quite some time. Improved education, greater lev- els of investment and government support for long-term development projects to improve infrastructure are boosting economies and creat- ing opportunities. This is creating an environment where investors believe there is a great potential for reward, if they are able to attract the right talent, hone their skills and develop market offerings to meet the increasing de- mand from many growing sectors. While some 30 out of 45 African na- tions have seen strong growth from the services sector, according to re- cent statistics from United Nations Conference on Trade and Develop- ment (UNCTAD), the sectors with the greatest potential for construction expertise are transport, logistics and communication. The influence and strength of East African development in these sectors is starting to be felt on the UAE’s shores, thanks to its di- verse infrastructure projects and the wide array of basics it needs to get them under way. It’s an influence that has emerged in a number of supply sectors, with the used machinery mar- ket being among the first to benefit. “We regularly see bidders from Af- rican countries joining our auctions in Dubai, in Europe and in the rest of the world,” says Eduard Faig, regional sales manager for Middle East, Africa and Asia subcontinent at Ritchie Bros, an auction firm. “Not just live online, but also travelling bidders that attend the auctions in person. At our last Dubai auction, we saw bidders from Egypt, Tanzania, Zambia, Uganda and several other African countries win the equipment they needed. Ad- ditionally, there are also bidders from non-African countries that source the equipment at our auctions to put it to work in Africa.” Faig says that on average more than half of the items the company auctions off in Dubai leave the coun- try, with many of them finding their way onto projects in Africa. And it’s a trend he says is on the rise. “Looking particularly at our Dubai auctions, over the recent years we have seen a gradual rise in bidders from African countries joining our auctions,” says Faig. “The fact that we have a mix of equipment at our auc- tions, including items that are fit for lesser-regulated markets, makes it an attractive place to source equipment.” For businesses that venture directly from the Gulf into East Africa the chal- lenges of getting started are likely to look familiar, with finding the right partner and having stamina to take the long view being key. The reward for patience and perseverance may take time to emerge but it could be worth it, especially in East Africa where observ- ers believe there is no lack of either business and investment opportunities, or access to skilled labour. It’s an op- portunity that Chinese firms have nota- bly already taken advantage of, thanks “At our last Dubai auction, we saw bidders from Egypt, Tanzania, Zambia, Uganda and several other African countries win the equipment they needed.” –Eduard Faig Downtown area of Dar Es Salaam, Tanzania. Image courtesy of Dereje

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construction business news me October 2015 30 see a lot of basic infrastructure being developed,” explains Mark Smith, a partner with Deloitte and head of In- frastructure and Capital Projects East Africa for the company. “What we’re tracking is more than $60bn worth of construction going on is in the trans- port area, such as highways and rail development.” Across East Africa transport proj- ects dominate the region, with a 59% share of the action, while energy and power projects are in a strong second place at 37%. The figures support the idea that the big investment is going into infrastructure development. Since 2013 the region has seen some key project milestones, including break- ing ground on a Nairobi to Mombasa rail project and Tanzania refurbishing the Dar es Salaam to Issaka rail link. Of interest to experienced Gulf contractors may be what Deloitte terms the region’s ‘intensive focus’ on road development as it seeks to link its cities with highways and develop public private partnership (PPP) proj- ects to fund the development. Over to their combined offer of knowledge transfer and capital infusion, which they’ve used to good effect to win ground and competitive advantages over other foreign investors. Their success can be seen in the numbers. In Deloitte’s African Con- struction Trends Report 2014, the firm points to an active Chinese construc- tion effort in the East African coun- tries, where 31% of projects under construction are being worked on by Chinese firms. China also contributes some 16% of the project funding, but owns just 2% of the final product. While China has been working at de- veloping business on the continent for years, the UAE is a relatively new entrant. That said, it too has staked a 2% ownership of projects in the East Africa region in just its first year of appearing in Deloitte’s figures. The country is provided 2% of the fund- ing and has a similar amount of the building work under contract (in West Africa it has provided 5% of funding for current active projects). “When we look at East Africa we “What we’re tracking is more than $60bn worth of construction going on is in the transport area, such as highways and rail development.” - Mark Smith the next 18 months projects that may come to market include the second Nyali Bridge PPP project. Elsewhere Kenya is in the process of develop- ing an annuity finance project for a 10,000km road development and maintenance programme. In Uganda, the Nairobi Mombasa Railway is try- ing to raise capital amounting to $8bn for a standard gauge railway. One way into these projects may be the ability to provide creative financing options for delivery. “If you look at the massive devel- opment of infrastructure going on, the cost of the finance cannot be borne by the East African govern- ments alone,” says Smith. “They are definitely looking for creative or al- ternative financing mechanisms and quite a large number of PPPs are be- ing used to fund the more critical in- frastructure needs.” One of the big projects getting under way that Smith notes could draw inter- national attention is Lapsset, a multi- country transport corridor from Kenya into Ethiopia and through to South Su- dan. The massive project will combine highway and rail developments with a pipeline and port facilities. “The first two critical projects that are being looked at in terms of kick off, using alternative project finance is the port development in Lamu as well as the oil pipeline,” says Smith. “These are two critical infrastruc- ture projects now being looked at, specifically including how private development companies can help finance them.” While Smith acknowledges the dom- inance of Chinese companies in the East Africa community of countries - a dominance in part facilitated by Chi- nese financial institutions - he suggests there is a change on the way, driven in part by a shift in the kind of proj- ects being worked on. As the countries in the region are moving into more sophisticated infrastructure projects, such as alternative and distributed energy, or oil and gas developments, government ministries are widening their company searches looking to bring in more expertise in increasingly complex infrastructure works. New skyscraper being built in Nairobi, Kenya. Image courtesy of John Wollwerth COVER STORY

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construction business news me October 2015 31 “A lot of the governments are now looking at alternative sources for how they want to supply and build some of these more sophisticated programmes,” says Smith. “They are looking at who they can bring in with some higher level of technologies, whether it’s in materials or alternative ways of construction, for these proj- ects. I think there’s some real keen interest in looking at those kind of suppliers and construction contrac- tors, who can bring in world-class expertise as it relates to these more sophisticated construction projects.” Despite the wealth of opportu- nity, barriers to market entry appear relatively low. Smith suggests this is thanks in part to the sheer size of the programmes being planned and ex- ecuted, with a number of mega proj- ects easily exceeding a billion dollars in value. “When you look at the competi- tion and who is going to be doing this work, it’s unlikely to be the local con- struction industry because they don’t have the experience,” says Smith. “So it clearly will be international suppliers and contractors who will be entering into the market because that’s where the level of expertise comes from. “The only matter [contractors and suppliers] have to consider is how can they do things differently with regards to integrating into not just construction or procurement strategy, but also how can they bring innova- tive project finance to some of these infrastructure programmes.” It’s the kind of investment envi- ronment that has been attracting in- creased interest from public and pri- vate sector evictees based in the UAE. The private sector in particular has been looking to invest in areas con- sidered the strong suits of the UAE, such as port developments along the trading coasts of Tanzania, Kenya and up into the Horn of Africa. Alternative energy projects, such as wind power and geothermal are also attracting at- tention of UAE investors as they have an opportunity to deploy energy ex- pertise form a supplier point of view. “I think [UAE investment] is likely to pick up,” says Smith. “UAE firms have tested the market and are find- ing some success: the trend will continue. If you look at the future for these mega infrastructure proj- ects in East Africa they have a fairly long tail, with 10 to 15 year devel- opment cycles. For UAE firms that’s the kind of market they are going to pick up and accelerate with in terms of being a competitive player in the market place.” Kenya is the primary target for Country Year Export AED ReExport AED ETHIOPIA 2014 406,150,856 1,780,127,206 KENYA 2014 981,530,399 1,302,073,578 TANZANIA 2014 503,484,342 1,559,778,792 UGANDA 2014 60,258,784 120,292,550 Grand Total 2,109,120,224 4,995,808,086 Value of UAE non-oil exports to selected East African countries

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construction business news me October 2015 32 many organisations looking to get a foothold in East Africa, with the na- tion’s vibrant economy and stable systems making it a strong gateway to the region for new arrivals. It is also home to the most projects in East Africa, a factor that contributed to the launch of The Big 5 Construct East Af- rica, which will run for the first time in December next year. “As East African countries continue to witness rapid economic growth from increased revenues as a result of the evolving market, there is a stronger demand for infrastructure development and suppliers for land- mark construction projects,” explains Ashley Roberts, event director for The Big 5 Construct East Africa at dmg events Middle East and Asia. “There will be a wider market gap for building products and construc- tion solutions that address respective project requirements. As sustainabili- ty is a vital factor for consumers in the region, national policies and govern- ment support will cultivate the need for modern eco-friendly construction materials to meet unique demands, which will in turn draw new and in- novative suppliers to the region.” Roberts notes that there is work to do in getting the message across to the construction supply market about the potential of opportunities in East Africa. He suggests some companies do not yet have a clear understand- ing of the wide range of opportunities and the immense potential of coun- tries within East Africa. “They also have incorrect no- tions with regards to the stability of the region’s economies and political landscape,” he says. “However, the countries within this region feature very resilient economies as well as ef- fective policy reforms. In addition the international community is becoming more enlightened with regards to the wealth of business opportunities that the region offers. Many countries are allocating funds in order to actively invest and penetrate in these respec- tive markets.” As awareness spreads more com- petition may gradually enter the East African market, but as it stands com- panies with technical expertise and project know-how are in demand. As East African countries continue to record a middle class growth rate stronger than other emerging markets their increased purchasing power will continue to drive demand for more of everything. There’s an opportunity waiting at the Gulf’s back door for those companies able to provide it. “As sustainability is a vital factor for consumers in the region, national policies and government support will cultivate the need for modern eco-friendly construction materials to meet unique demands, which will in turn draw new and innovative suppliers to the region.” –Andrew Jeffery Ashley Roberts, event director at dmg events Middle East and Asia COVER STORY

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construction business news me October 2015 33 I n the Middle East most disputes emanate from a failure to properly administer the contract that the parties entered into. There can be many causes of this. Three common causes are the contract ad- ministrator does not wish to award the contractor an extension to the time for completion when one is in fact due for fear that this may jeopardise its relation- ship with the employer. The contractor fails to comply with the relevant notice provisions in the contract. And, lastly, parties do not fully understand their respective design obligations. Transport and social infrastructure are especially prone to dispute due to the nature and complexity of the works involved. The works often span great distances where there are varied and challenging land conditions. The land conditions in one area of the works can involve existing major underground utilities that require relocation. The land conditions may be such that the works are undertaken within the built environment where great care has to be taken because surrounding buildings are occupied and roads operational. These circumstances often cause delay and additional cost to contractors due to third party requirements. Transport and social infrastructure projects often involve state of the art technology that is not procured from the country where the project is located. The shipping and installation of these materials is a cause of delay because of the procurement time and the inter- national specialists required to install them not being familiar with the project country conditions. Delays due to land conditions and procurement often prompt contractors to claim from employers. Then the COMMENT cycle again begins with the contract not being administered properly which in turn causes disputes. There are of course many other causes of dispute but these could be said to be the most common. Communication, a possible solutions There is no panacea that resolves all disputes but quite often a very helpful remedy is clear, honest and effective communication. This communication should take many forms. The first is a clearly written contract where the obligations and rights of each party are easily discernable. The second is where the parties agree to communicate, be that written or orally, in a respectful courteous manner to avoid inflamma- tory language. And, lastly to openly and promptly communicate with one another to find an amicable solution when problems arise. Through effec- tive and prompt communication the issues with contract administration can be greatly mitigated. Dealing with the gap Due to the fantastic and exciting con- struction industry in the Middle East where the projects are state of the art and pushing the boundaries of imagi- nation it is inevitable that challenges will arise. The gap in the market is to practice effective dispute avoidance. This can be through the use of Arcadis professionals where effective commu- nication is instilled into the project and or where there is an effective dispute resolution procedure in place that pre- serves the relationship of the parties to the contract. The Middle East has some of the best construction litigation lawyers in the world. By having a litigation lawyer involved one may suggest that a dispute has already crystalised. Perhaps what is required is more properly trained dispute avoidance practitioners be that lawyers or construction professionals such as architects, engineers or sur- veyors. These practitioners can be in- volved at any stage of the project from drafting of the respective contracts or throughout the construction phase and beyond to assist the parties in avoiding painful and costly formal dispute resolu- tion proceedings. As Benjamin Franklin said, “an ounce of prevention is worth a pound of cure”. Edward McCluskey is head of alternative dispute resolution at Arcadis Middle East. He is a chartered arbitrator, char- tered quantity surveyor, CEDR and RICS accredited mediator. Edward is an expe- rienced dispute resolution practitioner with more than 22 years’ experience. He is also the current chair of the RICS ADR Working Group in the UAE. Ending disputes Edward McCluskey, partner at Arcadis, analyses the common construction disputes in the region and discusses how to handle them

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construction business news me October 2015 34 Qatar’s construction sector has seen strong and buoyant growth since the announcement of the 2022 FIFA World Cup, but look beyond the stadiums and the industry is alive with record breaking infrastructure projects that will pave the way for the state’s next wave of growth T his December marks five years since the award of the 2022 FIFA World Cup to Qatar – a decision which has been mired in controversy, but one which has brought about an untold level of economic stability and opportunity to a Gulf state that was previously happy to live on its hydrocarbons revenue. In the tiny Gulf state, which a mere 2 million people call home, nearly $350bn of projects are currently in the planning or construction phase; each designed to contribute to creating an urban playground with the ability to at- tract a skilled expatriate workforce and steady influx of tourists. From the necessary requirements to complete infrastructure projects such as Doha Metro and Doha International Airport, to the pressing need to secure water supplies through Ashghal’s multi- contract, multi billion dollar roads and drainage network, to show stopping stadia required for the 2022 World Cup, Qatar is a hub of construction activity akin to the Dubai of a decade ago. According to Project Qatar organis- ers, IQPC, some of the major initiatives in the pipeline include a $7bn deep water port and a $1bn transportation corridor in the capital city Doha. New roads, stadiums and facilities will account for a further $200bn in spending over the coming decade, with key projects including a metro system, the 433,000 square metre Doha Festival City mall and the Sharq Crossing, aka Doha Bay crossing, worth $5bn. While nobody is claiming almost the entire world’s stock of tower cranes currently reside in Doha, anybody with an ear anywhere near the ground re- alises the significance of what is un- folding in the country. Laying foundations COUNTRY FOCUS

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construction business news me October 2015 35 Fast growth In an analysis of the entire economy – of which hydrocarbons contribute over 50% to GDP – Qatar’s construction sec- tor remains the fastest growing of all economic areas, with the government pledging $200bn of investment. Ac- cording to analysis from Oxford Busi- ness Group contractors specialising in projects related to transport, retail, real estate, tourism and education, are poised to benefit first. These projects alone could contrib- ute up to $70bn to the total project pipeline volume of $350bn. According to a report by BMI Re- search, Qatar’s construction sector is expected to grow by an average of 10% a year until 2025 – making it the stron- gest in the GCC and going some way to show that the industry is far from a one trick pony. Transport Last month, delegates at MEED’s Qa- tar Transport Forum were informed that more than $40bn worth of planned transport projects are cur- rently in the pipeline. These include the expansion of Ha- mad Port, the Doha Metro and long- distance passenger and freight net- work, an expressway programme and the $8bn expansion of Hamad Interna- tional Airport (HIA), including an ex- pansion of the main terminal building and concourse D and E. Also revealed for the first time were plans for two additional container ter- minals at Hamad Port that would in- crease the $7.3bn project’s handling ca- pacity to 6 million TEUs by 2020. The first phase of the megaproject is due to open at the end of 2016. Transport Minister Jassim Seif Ahmed

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construction business news me October 2015 36 No. Project Name Client Est. Value in US$ Mn 1 Airport City Project New Doha International Airport City 10000 2 New Doha Port New Port Project Steering Committee 7000 3 Msheireb Downtown Doha Msheireb Properties 5500 4 Sharq Crossing Ministry of Municipality & Urban Planning, Qa- tar / Public Works Authority (Ashghal) 5000 5 Valley City SAK Holding Group 4800 6 Doha Metro - Gold Line Qatar Railways Development Company 4400 7 Long Distance Passenger and Freight Rail Network - Phase 1 Qatar Railways Development Company 3500 8 Energy City Project - Phase 1 Energy City 3000 9 The Inner Doha Resewerage Implementation Strategy (IDRIS) Public Works Authority (Ashghal) 2500 10 Doha Metro - Red Line North Qatar Railways Development Company 2300 11 Doha Metro - Green Line Qatar Railways Development Company 2200 12 Doha Metro - Red Line South Qatar Railways Development Company 2200 Kuwari, Manager of Highway Projects department at Ashghal, presented an overview of the QR40bn ($10.8bn) expressway programme. The mas- sive project, which involves 1,000km of new or upgraded roads, 240 ma- COUNTRY FOCUS al-Sulaiti said in January 2014 that the plan to merge the first and second phases of the $7.5bn project will lead to third phase completion by 2020, a decade ahead of its original target date of 2030. The first phase of the new port is due to be completed in 2016. Qatar Rail’s Chief of Service Deliv- ery Andrew Tailor updated the Fo- rum on Qatar’s $20bn-plus integrated transport plan. A world record 21 tun- nel boring machines are being used on the Doha Metro project, which so far has completed almost 50km of tunnels. A total of 26,000 workers are working on the project, equating to more than 78 million man hours worked as of end of August. Work on the Lusail tram scheme is even more advanced, with stations completed, while the tender for the first phase design and build of the long-distance freight and rail network will be issued to contractors early next year. On the roads side, Eng. Nasser al- jor interchanges and 360 bridges, has already seen 43 major contracts awarded. A total of 15 contracts are either in the market or are being pre- pared, while a further 23 are in the planning stage. Muscat, capital of Oman Major Buildings and Infrastructure Projects in Qatar - Ongoing and Planned

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construction business news me October 2015 37 200 175 150 125 100 75 50 25 0 The bankroll However, the phenomenal growth has contributed towards a disparity be- tween need and cost. In the lead up to The Big 5, 2015, Mohamed Sheikh Al-Souk, deputy general manager, Construction De- velopment Contracting and Trading, has come forward to highlight the dif- ficulty companies face in generating financial support from Qatari banks due to “ever more restrictive” regula- tions. It’s a problem which does not exist in isolation. He has been quoted by dmg events, as saying: “Since there is so much demand and the infrastructure here has not quite caught up yet, there are always very high costs associat- ed with the growth of any company such as high rent and consequently high wages. “It is extremely difficult to obtain banking services from local banks be- cause they have raised their require- ments in such a way that it is now more difficult than ever. This directly affects the progress of work because lack of banking facilities ‘negatively’ impacted on the cash flow, implying lesser ability to maintain the momen- “The scale of the construction boom in Qatar has brought significant difficulties along with a host of fresh opportunities” tum of projects through timely pay- ments and material sourcing. The scale of the construction boom in Qatar has brought significant difficulties along with a host of fresh opportunities.” Mark Rudman, former regional direc- tor of Faithful+Gould, echoed Al-Souk’s concerns: “Delayed payment is all too common and it affects the whole of the supply chain, it is almost taken for granted that the contract terms will be ignored or only used when convenient.” Adding to such concerns, the In- ternational Quality and Productiv- ity Centre (IQPC) calls inflation a “serious problem”. While steep rises in construction ma- terial prices has long been anticipated, in June Reuters quantified the potential hike with estimates in the range of 15 to 20% from 2018. “The pinch point will likely be in Total Value of Qatar Construction Projects 2015f 2016f 2017f 2018f 2019f 2020f 2021f 2022f 2023f 2024f 2014 Construction Industry Value, QARbn and Real Growth, % Chg y-o-y Construction industry value QARbn (LHS) Construction industry value Real Growth, % y-o-y (RHS) Sector Value in US$ Million Buildings 136484 Infrastructure 103426 Energy 40294 Total 280204

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construction business news me October 2015 38 2017-19 when the construction work peaks, but the government can take measures to mitigate that,” said Nick Smith, partner at engineering consul- tants Arcadis in Qatar, was quoted as saying. “This will include early supply chain engagement, standardisation of prod- ucts and direct procurement of certain items. Qatar is already pursuing some of these initiatives.” According to the Qatar Inflation Report by EC Harris, If the forecasts for the scale of construction in Qatar are correct, the construction materials market could be $6 billion to $9 billion over the next two to three years. The report stated: “Whilst some ma- jor projects may need to be re-scoped or deferred until after the tournament, a wider re-timing exercise will need to take place in order to shift as much construction away from the anticipat- ed peak construction period and into the post-tournament period. This ac- tivity would require programme plan- ning co-ordination between all the key public and private developers and a centralisation of decision making re- lated to programme interdependencies and timings.” Further issues remain with the avail- ability of work visas, which is delaying some project and leading to additional costs. However the overall sentiment remains positive and, with the com- bination of a strong project pipeline, boundless ambition and solid sover- eign wealth, the tiny Gulf state is still set for very big things. COUNTRY FOCUS “Delayed payment is all too common and it affects the whole of the supply chain, it is almost taken for granted that the contract terms will be ignored or only used when convenient” - Mark Rudman

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construction business news me October 2015 40 MIXED USE PROJECT AWARD (BUILT) Project: One Shenzhen Bay in Shenzhen, China Developer: ParkLand Real Estate Development Co., Ltd Architect: KPF with AUBE & CCDI MIXED USE PROJECT AWARD (FUTURE) Project: Heartland 66 in Wuhan, China Developer: Hang Lung Properties Ltd Architect: Aedas COMMERCIAL PROJECT AWARD (BUILT) Project: The Forum in Hong Kong Developer: Hongkong Land Architect: Aedas COMMERCIAL PROJECT AWARD (FUTURE) Project: Main Office Building, Macau Traditional Chinese Medicine Science and Tech Park in Zhuhai, China Developer: Guangdong-Macau Traditional Chinese Medicine Technology Industrial Park Development Co., Ltd Architect: Aedas LEISURE & HOSPITALITY PROJECT AWARD (BUILT) Project: Lusail Sports Arena in Doha, Qatar Developer: Ministry of Youth and Sport Architect: Dar Al Handasa LEISURE & HOSPITALITY PROJECT AWARD (FUTURE) Project: Novotel Linkong 16-1 in Shanghai, China Developer: Zhanhong Real Estate Development Ltd Architect: Aedas COMMUNITY, CULTURE & TOURISM PROJECT AWARD (BUILT) Project: Ko Shan Theatre New Wing in Hong Kong Developer: Leisure and Cultural Services Department, HKSARG Architect: Ronald Lu & Partners COMMUNITY, CULTURE & TOURISM PROJECT AWARD (FUTURE) Project: National Museum of Qatar in Doha, Qatar Developer: Qatar Museums Architect: Ateliers Jean Nouvel RESIDENTIAL PROJECT AWARD (BUILT) Project: Qent İstinye in Istanbul, Turkey Developer: Dilek Gayrimenkul Architect: Melkan Gürsel & Murat Tabanlioglu RESIDENTIAL PROJECT AWARD (FUTURE) Project: The Piers in Muscat, Oman Developer: The Wave, Muscat Architect: Kettle Collective RETAIL PROJECT AWARD (BUILT) Project: Welcome Pavilion and Cascade Dining in Abu Dhabi, United Arab Emirates Developer: Miral Architect: RTKL UK Ltd. (Dubai Branch) RETAIL PROJECT AWARD (FUTURE) Project: Qingdao Jinmao Harbour Shopping Center in Qingdao, China Developer: Franshion Properties (China) Limited Architect: Aedas SUSTAINABILITY PROJECT AWARD (BUILT) Project: Ko Shan Theatre New Wing in Hong Kong Developer: Leisure and Cultural Services Department, HKSARG Architect: Ronald Lu & Partners Winners of Cityscape Awards for Emerging Markets 2015 Cityscape Global The Forum, Hong Kong REAL ESTATE – CITYSCAPE GLOBAL 2015

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construction business news me October 2015 41 Medium Pyramid impresses Deputy Ruler of Dubai After the inauguration of Cityscape Global 2015, H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, particularly praised the design and layout of the Falconcity of Wonders’ Medium Pyra- mid during his VIP tour of the event. H.E. Salem Al Moosa, chair and gen- eral manager of Falconcity of Won- ders, said: “It is because of our leaders’ support that we are able to continue our growth. We are always grateful to Sheikh Mohammed bin Rashid Al Maktoum’s continued and strategic vi- sion of making Dubai as a global tour- ist destination and the region’s main business hub.” The recently launched pyramid will be a 20-storey structure featuring ap- proximately 2,000 luxurious service ho- tel apartments comprising studios, one and two bedrooms. Covering an area of over 41 million sq.ft, Falconcity of Wonders features spacious apartments, shopping malls, hotels, fine dining restaurants, health clubs, spas, nurseries, schools and parks. Shaped like a falcon to sym- bolise UAE’s heritage, the area will at- tract real estate investment opportu- nities that arise from commercial and recreational facilities. H.E. Almoosa said: “FCW’s participa- tion in this year’s edition of Cityscape Global in Dubai was highly successfully. We received an overwhelming number of visitors, most of whom were inves- tors who expressed high interest in the design and layout of our mega-project.” Damac launched the world’s first Bu- gatti -styled homes during the Cityscape Global exhibition in Dubai this year. The exclusive limited edition collection called Ettore 971 Bugatti Styled Villas will be situated in the 55 million sq.ft Akoya Oxygen master development, overlooking the Tiger Woods designed Trump World Golf Club. Ettore 971 is named after Ettore Bugat- ti the founder of the renowned French Luxury super sports car brand Bugatti and ‘971’ signifying the international code for the UAE. The seven bedroom villas are concep- tualised by the designers of the world’s fastest street-legal production car, the iconic 1,200hp Bugatti Veyron and styl- ishly reflect its distinctive curved front. Prices will be in the range of AED36m. Ziad El Chaar, managing director of Damac Properties said: “We know that many of our loyal customers are huge fans of the Bugatti super sports car brand and the opportunity to live in the world’s first villas styled in Bugatti’s design language featuring key codes of the brand’s DNA is a unique opportu- nity to experience this fantastic brand in a whole new way.” Damac launches the world’s first Bugatti-styled homes Massimiliano Ferrari, managing director of Brand Lifestyle at Bugatti, at the Damac stand in Cityscape Global 2015

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construction business news me October 2015 42 Nakheel announced its intention to transform the entire trunk of Palm Ju- meirah into a walkable beach, park, retail and café complex. The Palm Promenade will stretch 1.5km along the island’s trunk, with new walkways and road crossings connecting the area’s 30 apartment buildings with Al Ittihad Park, Palm West Beach and the grow- ing number of retail, dining and enter- tainment facilities on The Palm. Unveiling the project at Cityscape Global Dubai, Nakheel chairperson Ali Rashid Lootah said: “The Palm Prome- nade is all about connectivity, walkabil- ity and accessibility, and yet another example of our continued delivery of new, innovative projects at the world- famous Palm Jumeirah.” Under the plans for the project, Na- kheel will connect all elements of the Palm Jumeirah trunk with one another. It also includes upgrades to the design of Palm West Beach, Nakheel’s new park, dining and beach club facility for the island. New features include two children’s fountains, retail facilities and parking for 700 vehicles. The Palm Promenade joins several other new Nakheel projects, including Nakheel Mall, The Palm Tower, The Palm Gateway and The Pointe, coming to Palm Jumeirah. During the event, the developer also unveiled Jebel Ali Gardens, its new community providing accommodation for more than 40,000 people. The new master developed project will comprise nearly 10,000 apartments in 42 buildings, set among landscaped gardens with pools and sports facilities. Apartments range from one to three bedrooms, and each building will also have ground floor retail space. Sharjah Oasis Real Estate De- velopment officially launched its most iconic project, Sharjah Waterfront City, at Cityscape Global 2015. The new project is set to build its own landscape creat- ing a luxurious and environ- mental friendly city spread across 36km of coastline with a total area of 60 million sq.ft. Hayssam El Masri, president of the Sharjah Oasis Real Estate Development said: “We have launched Sharjah Water- front City keeping in line with Sharjah’s development plans to attract 10 million visitors to the emirate by 2021. These robust plans will increase demand for residential and commercial units as well as hotels, especially in prime lo- cations that offer all modern facilities.” Sheikh Abdullah Shkara, chairperson of Al Hanoo Real Estate Co. added: “We have invested a lot in this project and we are delighted to see Sharjah Oasis Real Estate Development doing a tremendous job in the construction of Sharjah Waterfront City. We believe this project will be the heartbeat of the city’s tourism 2021 vision.” Dusit and Shaza in Sharjah Water- front City are the first two hotels to sign the agreement with Sharjah Water- front City. The hotels are expected to start construction by the last quarter of 2016 and expected to open to public in 2019. Meydan City Corporation showcased two of its major real estate develop- ments in an interactive exhibition stand at Cityscape Global. The star attraction on the 792 square metre stand is Meydan One, recently launched by His Highness Sheikh Mohammed bin Rashid Al Mak- toum, Vice President and Prime Minister of the UAE and Ruler of Dubai, at a VIP event. A 3,671,000 square metre leisure, residential and hospitality destination, it is set to become Dubai’s prime destina- tion when the first phase opens in 2020. The project is set to break at least seven world records featuring the 711m tall Dubai One Tower, Meydan One Mall, a Civic Plaza with dancing water features, a 4km canal and 100 berth marina. Other projects showcased included the Dubai Water Canal development, a joint venture project with the Roads and Transport Authority, Meydan City Corporation and Meraas. The Canal, which runs 2.9km connecting Business Bay to the Arabian Gulf, will include the development of the Crystal Lagoons in Safa Park as well as 8.1km of water- front. With 8.2 million sq.ft of open space, the Dubai Water Canal project will feature a 5.7km boardwalk, 1.1km natural beach and pedestrian connec- tivity between Safa Park and Jumeirah Beach Park. Meydan chair His Excellency Saeed Humaid Al Tayer said: “The response to the launch of Meydan One has been inspiring, making our presence at Cityscape Global even more impor- tant as we continue to communicate the sheer scale of the development to inves- tors and the wider real estate market.” Nakheel to transform a section of the Palm Sharjah Oasis launches environmentally friendly city Meydan showcases latest projects REAL ESTATE – CITYSCAPE GLOBAL 2015

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construction business news me October 2015 44 How important is the growth in new mall developments to draw in tourism from the GCC and internationally to Dubai? Matthew Dadd writes Retail valued REAL ESTATE D ubai has witnessed a seismic shift since 2004 in the total gross leas- able area (GLA) in retail shopping opportunity. With over three million square me- tres currently available from super regional to community retail, the va- riety for residents and tourists alike is formidable. The strategic position- ing of the GCC’s malls makes them more than a place to simply shop; they are now places to meet and be entertained for the whole family. It is not just attractions for the hot summer months, but also for the pleasant winter climate. New retail offerings such as City Walk and The Beach offer outdoor retail destina- tions which are predominately food and beverage (F&B) focussed. Other developing projects such as d3 by Tecom, will be a new business park that will offer a range of unique F&B and retail offerings within the first phase of the design district mas- ter plan. Dubai has over three million square metres of GLA. Image courtesy of David Steele Latest trends in retail Currently in Dubai there is a shift towards community retail to serve local residents as everyday malls. City Centre in Me’aisem, is the latest $75m community mall to be released to the market by Majid Al Futtaim. This cen- tre provides 55 shops and is anchored by a Carrefour Supermarket and Magic Planet. The purpose of a 24,000 square metre community mall is to provide the essential amenities such as a supermarket, hairdresser, cof- fee stores, pharmacy and banks. The locality within residential communities and ease of parking is a key driver for consumers choosing a community mall over a regional or super regional mall. However, the larger malls are position- ing themselves in a different market and improving their access, such as links to the metro and additional parking. Mall of the Emirates has just added an additional 1,300 car park- ing spaces this summer which again will hope to draw more consumers to choose the mall due to its excellent location, parking and extended range of shops. There are currently press statements released by the larger developers for an additional 600,000 sqm of GLA in Dubai over the next couple of years, with additional projects ‘on hold’ there is significant supply which could be delivered to the market. However, we do not expect all of these to be completed or delivered on schedule due to the size and complexity of the projects, which will allow the market to absorb GLA and older malls to modify their position and shopping experience. In a city which is renowned world- wide for launching mega projects, Dubai has not seen a significant super regional mall delivered in over five years. However, upcoming projects such as Meydan One and Mall of the World (gross development value of c. $6.8bn) – which will be a mixed-use community with the world’s longest indoor ski slope, a 25,000 square me- tre indoor sports facility, a 100 berth

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construction business news me October 2015 45 Matthew Dadd, partner at Knight Frank marina, city beach and a civic plaza – if delivered could help drive footfall into Dubai’s retail tourism sector. Tourism and retail With Dubai International Airport overtaking London Heathrow as the world’s busiest airport with 70 million passengers a year and the increase in the hotel keys, the continued drive for expanding the tourism sector is key. The retail offering will adapt with the market as well, as new international markets are opened up with Emirates and other airline carriers, we will see new tourist flows. Currently the top three international countries for tour- ists include Saudi Arabia, India and the United Kingdom. With global financial markets remaining precarious, the Rus- sian economy under pressure and the Chinese economy faltering, we may see a continued slow down or reduc- tion in consumers purchasing luxury goods. However, the world never remains the same and with the forth- coming sanctions being lifted on Iran, Dubai is poised to witness a large new consumer market closer to home. Dubai has always positioned itself as a luxury destination, this balance is now changing with new initiatives to increase the number of hotel rooms in the mid-market and budget sector which will have a consequential shift in consumer retail spend and retail habits. This drive into a new market sector has been encouraged by incen- tives by the Dubai authorities and therefore early traction is expected. As new malls are developed we expect to see additional GLA being focussed on this market segment to capitalise on mall footfall and spend. New activities and attractions are being created in Dubai’s malls to enhance the length of stay of its con- sumers as well as their tenant mix as they adapt to their target audience. Dubai is positioned as a city beach destination, but currently has a relatively low length of hotel nights stayed, compared to global cities such as London and New York, which will impact spend per head in the city. By having more affordable hotels in the city this can only but provide this opportunity and support the retail market’s future growth. Obstacles to market growth The GCC retail market is developing rapidly with new mall projects under construction in every country, this development of new retail GLA will affect the consumer spend in Dubai. Saudi Arabia is one of the three biggest tourism markets for Dubai and with new malls and expansion projects un- derway, we expect this to affect retail spend in Dubai, although may not affect tourist numbers coming to Dubai as a weekend destination. This coupled with Dubai’s higher luxury good prices compared with cities such as London and New York, which are frequently visited by the resident population to purchase expensive one off luxury items, Dubai must ensure its positions itself to attract high spend per capita as well as footfall. This may be a short term concern as exchange rate fluctua- tions with the Euro, which has allowed some retailers to purchase new product lines at ‘reduced prices’ and help Dubai remain more competitive globally and attract retail consumers. Dubai’s retail sector is dependent not only on the resident population, but also foreign visitors to support the existing GLA or planned projects and therefore must keep adapting and positioning itself to attract people to live, visit and enjoy the array of retail opportunities the city has to offer. Matthew Dadd is a partner at Knight Frank Abu Dhabi. He is a member of the Royal Institution of Chartered Surveyors (MRICS) and has over six years’ experience in the Middle East- ern commercial real estate market, specialising in office, landlord, tenant and retail advisory and consulting. Real Estate

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construction business news me October 2015 46 TECHNOLOGY In the second part of a three-part part series on Construction Collaboration Technologies, Dr Asif Sharif, regional director of Conject explains that not all project collaboration solutions are built the same T o define what we mean by ‘collaboration solutions’ is a good place to start. Terms such as project collaboration, document management and project controls are often interchange- able, having different meanings to different parties. The KPMG Global Construction Survey 2015 states that the use of Project Management Information Systems (PMIS) are not yet ubiqui- tous (with only 50% of global projects currently being supported by soft- ware), and goes on to define PMIS as: “Software to improve project planning, scheduling, monitoring and controlling, in order to raise the quality of decision- making in each phase of the project life cycle. It enables engineers and project managers to communicate project status swiftly and accurately with func- tional departments, while also keeping senior management up to speed on all the projects in the portfolio.” Document Management is a core component and very much a constant feature and would typically support projects by enabling easy storage and retrieval of the following types of docu- mentation and data:- • Pre-contract documents; specifica- tions, tenders, bills of quantities etc. • Change processes (Technical Que- ries, Request for Information, Change Requests etc) • The contract itself • Schedule of works – detailing the project timeline and current progress • Drawings with integrated viewing tools to support all common file formats • Communications – Submittals, Transmittals, Project Emails, meeting minutes • With the use of BIM gaining in popu- larity, solutions should also provide a Common Data Environment (CDE) to enable effective collaboration between design and construction delivery teams. • Financial information – budgets, purchase orders, invoices • Instructions, amendments to contracts and written approvals • Management and contract perfor- mance reports The other key characteristic of collabo- ration solutions is how it is delivered and accessed by the user base. Solu- tions which are hosted internally are designed to help internal teams and departments collaborate amongst each another and provide a central reposi- tory of information within a company structure. In contrast, many collabo- rations solutions are hosted via the “cloud” and the software (is delivered) as a service to support external project teams during the lifecycle of construc- tion projects. This latter category of collaboration solutions are particularly well suited to foster, support and en- courage inter-working between project participants form various companies in the supply chain. During a recent seminar on claims and disputes run by leading Middle Law firm Al Tamimi and Co., the importance of externally hosted, web based, ‘electronic document manage- ment systems’ was highlighted as being key to mitigating risks on projects. Whether the organisation is a contrac- tor or client, recording, organising and having the ability to re-produce information has strategic importance in supporting or refuting claims. You could even go as far as to say that organisations should think about setting out how they manage informa- tion at the start of a project, almost as if they are already in litigation. This would ensure effective dispute resolu- tion measures are ready and in place. What are the different 'types' of software systems used to support projects? First tier; are systems which provide a basic way of enabling simple storage and sharing of documents and information, but offer very little in the way of supporting collaborative working. Often adopted to replace email as a way of managing and disseminating large files, these systems tend not to have inbuilt messaging and process management features, and are often used by single entities needing a ‘quick fix’ in making content accessible to internal stakeholders. Second tier; those which offer more 'State of the Art' functionality in enabling logical organisation and struc- turing of information, version control, multi-organisation access, and crucially provide advance search features such as OCR capability. These systems are developed to allow multiple stakehold- ers to have access to important data, Talking Collaboration

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construction business news me October 2015 47 (depending on roles and rights), as and when required and support varying degrees of collaborative working. From Document Management to Business Management… Third tier; providing an even greater level of sophistication, moving docu- ment management functionality into the area of project controls. Project controls systems are designed to pro- vide a complete framework that ‘holisti- cally’ brings together and manages documents, communication, processes, cost and time. The real differentiator here is better risk management, which comes through having a better under- standing of the project commercials, namely, money spent and work done compared to budget and work forecast. Collaborating with BIM With many governments now man- dating the use of BIM on projects, the term Common Data Environment (CDE) has gained prominence. In essence this emphasises the require- ment for projects to ensure that robust collaboration solutions (some second and particularly third tier) are being implemented on projects to ensure that model data can be accurately stored within the CDE, version controlled, easily retrieved and viewed by multiple parties, whilst still ensuring that there is strict control on the authoring and amending of the models themselves. Typically, second tier collaboration solutions would enable the model files to be structures, stored, version con- trolled and viewed. Third tier solutions go a step further by enabling comment- ing, reviewing and approvals of such files to be undertaken in a fully audited collaborative environment between defined parties involved in the design, construction and maintenance process. The extent to which information should be recorded and stored is a very pertinent question. Take a single area such as email for example, in large teams a question could be asked as to whether ALL formal, project email com- munications should be recorded. Within the realms of a project, it's very much an ‘all or nothing’ approach to the management of information. All parties will generate information (whether it's simple communication, RFIs, design changes/variation). Autho- rised parties (typically client, engineer, PMs) will review and approve informa- tion. Emailing outside of the ‘project space’ is to be discouraged, as getting access to email accounts - in the event that a key member of project team has moved on - is extremely challenging. The short answer of course is - YES. The very mechanics of these systems, which allow legal teams to easily sift through all the information to get to that important 5% of relevant informa- tion. A local case where a contractor's document management system was in fact far too basic in its architecture and ability to support forensic analysis of data (no OCR capability). The effect of this meant that is was virtually impos- sible to re-produce important informa- tion, when needed. How about access rights to information? Within the UK forms of contract such as NEC3 and JCT promote open and collaborative working between projects teams. By virtue of this, the systems used in supporting these projects provide an environment where project- wide collaborative working encourages transparency, auditability and account- ability benefitting both clients and delivery teams. The converse of this is a tendency for teams to revert to more traditional approached to client and supplier re- lationships which are based on clients defining requirements with the aid of consultants and then tendering projects to usually the most experienced lowest bidder to construct the project. Typi- cally there are no previous relation- ships between the teams or real un- derstanding of the clients and projects requirements. As a result there is little proactive anticipation and management of changes and any deviation from the defined scope of works will result typi- cally in cost and time escalations. Therefore the question that should be asked is our industry ready for change and can we support collabora- tive working going forward and most if not all projects rather than the few high profile ones. If the system is very ‘closed’ in its de- sign, then perhaps it’s more of case that the system is no better than a reposi- tory of information and the traditional paper process, rather than a solution that enhances collaborative practices. This is a journey for project teams to take, but it’s one which they will have to take sooner or later in order to stay in the market and retain or grow their market share. Investing in Collaboration Solutions A pragmatic approach is needed prior to evaluating and investing in any form of software, and one where a cost-v-benefit analysis is evident. So in other-words, ensuring that organisa- tions don't over-shoot on the funda- mental needs of the project, but at the same time, making sure that you do get value for money. Suppliers also need to be flexible in their licencing and commercial models, and due to the nature of projects, allow for ramping up and scaling down in line the profile of the project. Aside from the functionality of the software, three very important ques- tions around the physical characteristics inherent with software-as-a-service should be carefully considered: • Can vendors demonstrate a first class hosting environment, with mirrored backups to an alternative data-centre, ensuring your service continues in the event of total system failure? • Does the system lend itself to be able to provide a full, detailed and trans- parent audit trail of all transactions performed by the project teams? • What happens to your data at the end of the project? Will your supplier provide you (or your client) with an archive of all the project data as part of their service? On those final three points - my next article will specifically address data management, asking 1] How safe is your data? And as and when projects come to an end… 2] Who owns the data?

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construction business news me October 2015 48 PROJECT update I t’s the skyscraper with its own Twitter account, and is potentially the most anticipated project since the an- nouncement of Kingdom Tower. Nobody can verify how tall it will be and few can really define how it will be used, but it’s the project that is tipped to define the next five years in global architecture and it will be con- structed in Dubai’s JLT. Burj2020 and its surrounding district, the mastermind of Jumeirah Lakes Towers’ developer DMCC, won’t just be Dubai or the UAE’s latest landmark, it will be the pinnacle of what is described as an urban destination delivering “the ideal balance of world-class commercial, retail, hospitality and residential space at the gateway to south Dubai”. Officially launching the project during its first ever par- ticipation at Cityscape Global, DMCC executive chairperson, Ahmed Bin Sulayem, accompanied by CEO Gautam Sashit- tal and world-renowned tall tower architects, Adrian Smith and Gordon Gill (AS+GG), said: “Dubai’s commitment to expanding economic growth and its strong track record in attracting global businesses is continuously driving DMCC to deliver efficient premium marketplaces for the leading busi- nesses of today and tomorrow. “The Burj2020 District is central to this strategy and will deliver the ideal balance of world-class commercial, retail, hospitality and residential space, all set within a thriving urban landscape at Dubai’s southern gateway. Burj2020, the district’s landmark vertical destination will join the elite group of the world’s most unique super tall commercial tow- ers and complement the Dubai skyline with its striking de- sign by Adrian Smith and Gordon Gill.” The landmark commercial tower is set to deliver new lev- els of working environment efficiency and contiguous, flex- ible floor plates that address modern-day business demands. Inspired by faceted gemstones, the design is rooted in “the principles of perpetual value, enduring strength and everlast- ing beauty,” according to the architects, but it’s also about something more. Channelling a futuristic design in its intended use of glass, steel and natural lighting, the project will balance science and art and it is expected the tower will also become a bea- A true landmark Exhibiting at Cityscape for the first time, JLT developer DMCC welcomed appointed architects and VIP guests Adrian Smith and Gordon Gill of AS+GG to unveil to the world what has come to be described as a “true landmark”, the Burj 2020 District Number crunch: Dubai’s JLT 200ha area, encompassing 67 towers, which are home to 11,000 licenced companies 85,000 people living and working in the area

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construction business news me October 2015 49 DMCC executives at the project launch at Cityscape Global 2015 with Sheikh Maktoum Adrian Smith and Gordon Gill with DMCC executive chair, Ahmed Bin Sulayem con of sustainability, with current ambi- tions to attain the highest LEED rating. Explaining how his career has been inspired by nature, Gordon Gill says: “One of the largest influences to the contextual approach I have taken in my work occurred when we started talking about the environment from an energy perspective, where we said ok this place has a unique foundation; the earth the geography of a place the impact of the soil has temperature dif- ferentials, you can mine that difference. Take for example the wind; some plac- es have none, some have a lot and you can use that energy to generate power. Solar; some places have a lot of sun and that can be utilised.” The era of the megatall The last decade has seen a transforma- tion in the skyline of the world’s cit- ies, and no less than a revolution in the way new buildings are designed and developed. Partly attributable to the high de- mand for land, and partly attributable to the need to re-create the idea of community for the modern world, to- day the trend is irreversible. According to data from the Council of Tall Buildings and Urban Habitats (CTBUH), at the start of the 21st cen- tury, Malaysia’s Petronas Towers were the world’s tallest, at 452m. In 2004 that title went to the Taipei 101, which stands at 508m then, six years later the title was awarded to Burj Khalifa, which at 828m has held the record for five years and mostly likely will until Saudi Arabia’s Kingdom Tower opens in 2019. Incidentally, the world’s tallest LEED certified building is Taipei 101, follow- ing a ceremony in 2011. Using the data to predict how future trends will develop, CTBUH expects that by 2020 the world’s tallest building will have more than doubled. So what of the height of Burj 2020? While Smith and Gill are advising DMCC on how high the centrepiece of this urban habitat should soar, their pri- mary aim isn’t to create another record breaker – and why should they with two already under the belt. The aim is to create a gateway to Dubai’s south district that will serve DMCC’s existing tenants and also provide world class space for its prospective tenants. As of yet, the final height is unde- termined and calculations to find the sweet spot between iconic and efficient are ongoing. Adrian Smith explains: “There are technical and marketing issues we don’t know the answer to right now, which is why we haven’t confirmed the height of the tower and also why we don’t want it published. Going back lat- er and correcting that information isn’t ideal, which is why we are currently only talking about it in a conceptual and abstract way.” It’s an approach which calls back to their strong connections with na- ture. AS+GG as a firm has managed to imbue a culture of auteurship in many of its projects and as a result they are instantly recognisable on their respective horizons. That is why, when Smith and Gill are asked about their d’etre, global archi- tectural trends will not be their answer. Gill explains: “I think that when we started working together and also through my schooling I am closest drawn to what is behind the look. I am very curious about the essence of something or a place. I know that the beauty of something is more than skin deep. If you are genuinely beautiful it comes from inside and it has a much deeper legacy to anything. I think we, and I, are very interested in the mean- ing behind why something is the way it is. So as much as we are interested in the things we see physically, it is na- ture and cultural context – the things you don’t see – which are the most influential elements.”

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construction business news me October 2015 50 SUSTAINABILITY Construction Business News ME speaks with sustainability experts to discuss the role of greenwashing in Middle East’s construction industry W hat are your ob- servations of the current state of “green construc- tion” in the Middle East today? AL ABBAR: The green construction in- dustry has grown significantly in the Middle East in recent years. There is an increasing knowledge and understand- ing of which green materials, processes, equipment and systems are beneficial to projects in terms of water saving and en- ergy efficiency. Today, we see significant strides being taken in the region to promote energy- efficiency in the built environment. Au- thorities throughout the GCC are increas- ingly implementing regulations and rating systems that are setting high standards for new construction projects and through- out the industry. We have also noticed an increasing number of experts as well as test or pi- lot projects in the region to support re- search and enhance the knowledge and confidence of the authorities and the industry. Masdar City and Qatar’s Pas- sivhaus project are good examples of the commitment of the authorities to green buildings. In addition, there is a strong positioning by the local GCC or MENA Green Building Councils to support the authorities and the construction industry to get greener. In the UAE particularly, a focus on sus- tainability has become part of the coun- try’s philosophy, regulations, standards and practices. The importance of green building in the country is evident. A ris- ing number of green buildings are LEED (Leadership in Energy and Environmental Design) and Estidama Pearl certifications, not only to align with government regu- lations but also driven by voluntary de- cisions from developers, contractors and other parties involved. Along with this increased interest within the industry, we have witnessed the creation of more sustainable building awards, as well as a stronger impact and exposure of frameworks and reporting systems like the Global Reporting Initia- tive (GRI) and the UN Global Compact, which promote the use of sustainability reporting as a way for organisations to become more sustainable and contribute to sustainable development. COLACO: Contractors, suppliers and supply chain in most Middle East coun- tries are slowly becoming aware of the green requirements. They are now better connected with international sources of green products, equipment and supplies due to popularity of both international green rating systems like LEED, and gov- ernment green building regulations such as EHS Trakhees of Dubai, Abu Dhabi’s Estidama, Dubai Municipality, Qatar’s GSAS, Saudi GBC and Kuwait GBC. Greenwash The Great

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construction business news me October 2015 51 There are still those who follow con- ventional practices either knowingly or out of ignorance and camouflage it through shallow, unsubstantiated, self- stated claims. Absence of a unified green criterion between different rating systems and au- thorities has led to confusion in the con- struction industry. AL RASHEDI: The UPC has monitored a lot of successful sustainable projects from inception to completion in recent years. Along the journey, as our programme has matured, we have seen projects make mistakes, learn lessons, and implement those learnings gradually to improve the end result. The green construction industry is im- proving and constantly evolving as new technologies emerge. For this reason I think the green industry is strong with an increasing client awareness of potential en- ergy cost savings being the driving factor. Yasmeen Al Rashedi, senior manager of the Estidama Department at Abu Dhabi Urban Planning Council Saeed Al Abbar, chairman of EmiratesGBC Errol Colaco, head of sustainability at Energy Management Services Emirates LLC Greenwashing is the practice of overpromising or misleading on the beneficial effects products or services will provide. Based on this definition, how wide- spread do you believe green- washing to be in the Middle East and do you have any examples? COLACO: Greenwashing is indeed prev- alent in the Middle East market. The most common examples would be • Suppliers who claim paper products are “recyclable” when the actual requirement calls for “recycled” paper products; • Owner claims he saved 15% of energy, when actually the reduction was due to lower AC consumption due to cooler weather compared to previous year; • Product flyers depicting exaggerated claims such as company X’s LED lamps provides total of 20 LEED points when ac- tually LED alone cannot reach the thresh- old levels required to achieve all the available points under the stated credit categories; Experts in the US say the prob- lem of greenwashing is endem- ic in the green construction industry and is likely to get worse. How should this be ad- dressed? COLACO: Greenwashing in some form or the other will always be around. The challenge is how to filter and expose bad apples from good ones. Responsibility lies collectively with owners, developers, sustainability specialists and authorities. Owners and developers should rely on third party consultants and specialists with a proven track record. They should have in place an implementation strat- egy at the outset to facilitate an effective transition between design, construction, fit-out and operation stages. Construc- tion documents should spell out sustain- ability requirements in sufficient details. An effective monitoring and approval process will ensure that right products and practices are procured, implemented and commissioned. Tenant fit put pack- ages should have similar clauses making it mandatory for tenants to comply with sustainability requirements. Measurement and verification proto- cols and re-commissioning requirements should be adhered to by operators and facility managers to maintain the ongoing sustainability of the development. Local authorities such as UAE’s ESMA and Dubai Municipality can play an im- portant role in certifying the environmen- tal attributes and claims of green products. A robust review mechanism by the authorities over the life cycle of the de- velopment, coupled with trainings and awareness programmes, will minimise green washing. AL ABBAR: I don’t think greenwashing is endemic to the construction industry, but the perception that building green is more expensive continues to prevail. This needs to be tackled with education, trainings, workshops, etc. to prevent it from posing difficulties to the growth of green building and further move towards a more sustainable industry. AL RASHEDI: In my opinion, the ‘green’ label is often overused, and without con

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construction business news me October 2015 52 text, i.e why is this product or service be- ing labelled green? It is added to products and services, as an add-on which may not be warranted. This can be misleading. The best method of addressing concerns is by questioning and assessing proposals with greater detail. Clients and consultants are now becoming more informed of green products and services. The preparation of a concise set of project or client require- ments can be used as a measure for any proposals. This will quickly identify what is being exaggerated and is not required. The difficulty arises when a new product or new service is announced; this is an unknown and must be examined care- fully. When examining problems it is im- portant to consider the successes which will far outweigh the problems. Could you give a rough percent- age on how many companies you think are greenwashing in the regional construction in- dustry? Why do you think these companies resort to green- washing? COLACO: It is difficult to put an absolute percentage. A more important measure would be the degree to which companies engage in greenwashing, and this varies from company to company. Most compa- nies would have an assortment of prod- ucts each with varying degrees of compli- ance to environmental attributes. Many of the green products and services come at a cost premium. There is also the issue of long lead times as some of these products need to be imported. Last but not least, there is still a lack of aware- ness of green practices and understand- ing of green specifications among con- sultants, suppliers and contractors. With ever increasing growth in construction and so many companies competing for business, cramped project timelines, tight budgets and eagerness of end users to project them as green, greenwashing is unlikely to be eliminated but can only be minimised. In a scenario where a develop- er is looking for a ‘green’ con- tractor, how do you recognise services that are greenwashed? COLACO: Contractors can be judged based on their track record in green proj- ects. Contractors who align themselves with specialist sustainability consultants or have experienced personnel with the required sustainability experience are likely to deliver green projects as intend- ed. Contract becomes an important tool for the developer to specify and enforce the green requirements. Appointment of third party independent commissioning agent and sustainability consultant by the developers to specify, verify, validate and report the consultants and contrac- tors claims will mitigate greenwashing to a large extent. AL RASHEDI: Companies must be able to demonstrate a holistic approach, an entire company structure with key personnel provided to deliver project requirements. Sustainable companies must provide cost and energy options to prospective clients, and if a prequalification is returned with no questions or suggestions, in my opin- ion it wouldn’t indicate foresight or an intent to deliver a sustainable service to the client. What role do green consultan- cies play in this scenario? Are they key to finding the right way to transform? AL ABBAR: Consultancies with dedicat- ed sustainability teams can support and guide each stakeholder in order to mak- ing the right or reasonable choices that ensure a project meets its sustainability targets. They can help decide what stake- holders should be involved and provide support with the commissioning process. They can also offer advice on design, materials and equipment, as well as on what processes and policies should be observed to ensure compliance with reg- ulations and rating systems. AL RASHEDI: Consultants are key, but clients need to be able to place their full trust in the consultant. Do certifications such as LEED help avoid green washing? How important is certification, and how does it support the con- struction industry? AL ABBAR: It is important to note that a building can be sustainable and incorpo- rate green best practices without having a certification behind it. Certifications, how- ever, are useful tools for measurement and can serve as guidelines for best practice. Green building rating systems and reg- ulations, such as LEED or Estidama Pearl, set standards to be achieved by the con- struction industry with regards to design, materials, equipment, training and com- munications. They are of great support to SUSTAINABILITY

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construction business news me October 2015 53 provide benchmarks to the industry and the market, as green buildings are now considered the “new normal” thanks to regulations and communications. LEED, for example, has been common- ly used in the UAE; taking advantage of its global, regional and local applicability to create structures that mitigate green- house gas emissions; create healthier in- door environments for workers, students and community members; and lower util- ity bills for building owners through re- duced energy and water use. With new regulations and other gov- ernment initiatives focusing on the pro- motion of green building and sustainabil- ity, LEED has become even more popular in the UAE, having recently been featured number eight in the top 10 LEED coun- tries ranking published by the US Green Building Council (USGBC). AL RASHEDI: While there are many ben- efits to following the LEED programme, the UPC created and manages the Emir- ate’s sustainability programme, the Esti- dama Pearl Rating System, which became mandatory for all new buildings in Abu Dhabi in 2010 holistically addresses sus- tainable design, construction and opera- tion. Its relevance results from how it has been tailored to dealing with the specific challenges posed by the region’s arid desert climate. The Estidama Pearl Rating System is the fastest growing sustainabil- ity rating system in the world and has certainly contributed to advancing the UAE’s sustainable growth. The UAE is in the top 10 LEED certi- fied countries in the world, how does that reflect in the overall sustainability of the country’s construction industry? AL ABBAR: The increased popularity of LEED throughout the UAE shows that the construction industry in the country is changing, and green building standards are becoming mainstream. To us, as an in- dependent organisation working towards promoting sustainable built environments, strengthening awareness of green build- ings, ratings and other aspects to all stake- holders is our mandate. Finding the UAE featured in this list proves that the commu- nications and education of professionals, developers, authorities and communities are working. COLACO: In the year 2008, when H.H. Sheikh Mohammed Bin Rashid Al Mak- toum announced that all new develop- ments in Dubai has to be green, the only readily available benchmark which was acceptable to the community at large was the LEED certification programme, with EHS Trakhees being the first to adopt it. LEED’s popularity slowly spread to the whole region. In my opinion LEED allowed instant implementation of the green directives, giving time for authorities to create and formalise green regulations specific to its jurisdiction. By the time local regu- lations like Estidama, QSAS, DM green building were in place, the green con- struction industry was somewhat fa- miliar with the green concepts through their LEED projects experience. LEED along with local green build- ing regulations and the will of the UAE government has definitely placed the green construction industry in the path of green maturity. U.S Australia U.K Norway Germany Singapore U.A.E Brazil 2012 40% 28% 45% 23% 17% 64% 48% 24% 2015 53% 47% 68% 49% 36% 89% 74% 50% The growth of ‘green’ firms, 2012-2015 Singapore U.A.E Brazil Germany Norway U.K Australia 100 2012 2015 Source: McGraw Hill WGBC Report – World Green Building Trends 75 50 25 0 U.S

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construction business news me October 2015 54 Green steps GCC governments are imposing new standards to minimise greenhouse gas emission and limit resource depletion. Construction companies can play a direct role in this process, write Dr Ioannis Spanos and Francesca DePetris ever, more work is required in order for these benefits to be fully applied in the construction sector at a wider scale. The right mix of initiatives from both the public and private sector has proven to be most effective in implementing innovation and best practice internation- ally. GCC governments are imposing new standards to minimise greenhouse gas emission and limit resource deple- tion. Construction companies can play a direct role in this process. The following ten points describe active steps which can be adopted to T he impacts of global warm- ing are highlighted often on the front pages of news- papers, but what is often overlooked is the role of industry; manufacturing, transportation and construction may be major pollut- ers, but the greening of such industries could create entire new revenue streams and business opportunities. According to data from the United Na- tions Environmental Programme, glob- ally, out of the total emissions related to buildings, approximately 80% are related to operational energy consumed during occupancy with 20% of emis- sions are emitted during manufacturing of construction materials and during the construction process. Considering the overall construction emissions, for build- ings and infrastructure, around 10% of the UK national emissions are associated with the manufacturing and transporta- tion of construction materials and with the construction process. In addition to carbon reduction emissions, green con- struction activities allow preventing and minimising land pollution, increasing water consumption efficiency, reducing noise and traffic levels and maximising waste diverted from landfill. Especially on waste, statistics in Europe and the US report that construction and demolition waste alone can amount up to 30% of total generated waste, more than 70% of which can be recycled. International experience has proven that much can be done to change these trends. Lately, stakeholders and developers in GCC have become aware of the benefits of sustainability; how- make a transition towards a greener construction process: 1. Sustainability knowledge should not remain the exclusive domain of a sustainability consultant embedded in the construction team. Sustainability requirements should be common knowledge amongst management, shop drawings production, procure- ment and staff onsite. The senior ex- ecutive directors, the company board and the senior management have to ‘buy in sustainability’ as they may be Dr Ioannis Spanos is the senior sustainability manager at KEO International Consultants. His consultancy and project management experience includes the development of low energy, environmental friendly and sustainable urban solutions in UK, West Africa and GCC during the last 14 years. He is a Chartered Energy Engineer and following a Doctorate in the physics of energy in urban environments, he has been exposed in the design and development of projects within all building sectors. SUSTAINABILITY

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construction business news me October 2015 55 Some of the common practical green requirements within different international rating systems are: • Segregate waste on site and agree with companies for removing the waste going to recycling plants • Have holistic project operational and construction environmental management plans; procedures on-site have to be clear, interconnected and have regular and structured quality checks • Avoid procurement of high VOC content materials and finishes: paints, adhesives, sealants, carpets, floors • Prefer the use of energy efficient machines and equipment, avoiding leaving them running idle and channelling their exhausts away from workers or occupants Know your building systems • LEED (Leadership in Energy and Environmental Design) – volunteer based and developed by the US Green Building Council. Includes requirements for contractors to follow during the construction stage. Enjoys global recognition. • Estidama – a mandatory system devised in Abu Dhabi and applicable to all new buildings in the emirate on a five point sliding scale • GSAS (Global Sustainability Assessment System) – a Qatari system also used in other GCC countries such as Kuwait and Saudi Arabia. LEED and Estidama incorporate requirements for contractors in the same rating that is applied to the design process, while GSAS or CEEQUAL (a UK sustainability assessment, rating and awards scheme for infrastructure) have created individual schemes to assess sustainability of the construction process alone. the final authority when critical situa- tions are escalated and a quick decision is required. Greening a construction company, of any size, requires challeng- ing existing processes, making them more efficient away from blindly follow- ing ‘business as usual’. 2. Sustainability starts well before the actual works on site by having a plan of delivery based on sustainability prin- ciples; principles which in most cases reflect international best practice. 3. Sustainable construction processes have to foster openness and collaboration between internal teams and external stakeholders, working towards a com- mon target of creating truly sustainable projects. This means that some barriers may have to break down and all in- volved parties should work together to achieve the targeted sustainability goals. 4. Green procedures have to be embed- ded in the contractual appointments and subcontractor orders, focussing equally on sustainability compliance, materials selections and actual construction. 5. Sustainability compliance requires well informed procurement and expert knowledge of the market; a sustain- able material is not always expensive nor are low cost items always non- sustainable. Construction companies are usually more successful on sustainability deployment when they believe in “one team" approach. 6. Introduce a sustainability “charrette" in every project, where the sustainability criteria of the project can be analysed and clear targets can be given to con- struction team leaders. 7. Sustainability should be considered a continuous improvement process, by training staff at different levels. Com- panies with an ISO certification, or continuous learning programmes, at all levels, will find the process much easier as continuous learning can rekindle motivation, understanding of best practice and ultimately lead to long-term sustainability initiatives. 8. Teams should be encouraged to share knowledge and ideas: holding regular workshops between differ- ent construction teams to look at ways to eliminate environmental and sustainability impacts, hazards or risks can provide a better communi- cation vehicle of green knowledge than having dedicated training on sustainability. 9. Knowledgeable construction com- panies could challenge the design for better sustainable solution at no extra cost during the construction stage; a well-informed sustainability consultant can provide support to the client, designer and contrac- tor to achieve a common beneficial outcome. 10. Sustainability criteria of materials must always be tagged within the specific material submittal. Sustain- ability criteria of any scheme (LEED, Estidama, GSAS, CEEQUAL) have to be always linked to specifications and drawings, specifications and drawings have to be linked to orders, orders of sustainable materials have to be linked to the deliveries on site and, finally, all works and commis- sioning has to be linked to the initial sustainability criteria. Francesca De Petris is an architectural engineer specialising in sustainability and construction management, currently working as a sustainability manager for KEO International Consultants. De Petris has 15 years international work experience, with over 8 years’ experience of construction supervision in Europe and the Middle East. De Petris holds an MSc in Science of Architecture with the Polytechnic of Turin, Italy and an MSc in Environmental Design of Buildings with Cardiff University, UK.

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construction business news me October 2015 58 Q&A How is maintaining a healthcare building different from a commercial building? Managing facilities within a public building must always factor in custom- er comfort and this is really important. But in a hospital, we further reinforce our approach to reliability as the day to day running of the hospital is vital for easing patient discomfort during a In a hospital, the best facility man- agement plan is preventative, not reac- tive as this decreases the risk of fail- ure, as any issues are flagged before the problem has fully materialised. How does effective FM affect the performance of a health care facil- ity and the resulting recovery of its patients? Competent FM in a sensitive sector such as healthcare is critical. With medical equipment relying on facilities managed by third party companies, failure can result in life threatening or tragic circumstances. Bedside manner is proven to have an impact on patient recovery and, based on the same principle, a build- ing that looks and smells clean, that operates smoothly and functions with patient care as a priority can ease the stress brought about by the traumatic experience of being in hospital. One of the top priorities for FM in healthcare centres is the air qual- ity. Our company takes additional care and practices special procedures over the maintenance of the air con- ditioning systems and frequently test air quality. We also guarantee the maximum availability of equipment to ensure there is not a lack of vital tools. The clinical team must be confident that their supporting services run flawless- ly and aid in patient care. Healthy FM particularly stressful time. The major difference between main- taining a healthcare building and a commercial building is how time is condensed. If something is not func- tioning efficiently in a healthcare facility, the response time is much shorter than in commercial build- ings as more is riding on optimal facility management. With the last recorded population in the UAE to be 9.2 million in 2013, the cur- rent healthcare sector is under pressure to provide more facilities. This is the same for any country, even the UK’s long-established healthcare system has been growing at a steady rate of 5%. As the the UAE massively invests to im- prove its sector to match world leaders, CEO of Enova Alexandre Mussallam speaks with Construction Business News ME about current challenges faced in energy and facilities management in healthcare

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construction business news me October 2015 59 With improving the healthcare offer- ings in the UAE being a priority and billions of dollars invested in making this a reality, Dubai is well positioned to become a medical tourism hub. In- telligent SME states that medical tour- ism contributed for 8.7% of tourism in 2012 and this is expected to grow exponentially. Healthcare IT spending in the GCC is set to grow by 24% percent from $444m in 2011 to $551m in 2015, according to a recent report from Alpen Capital. Does this affect FM, especially when talking about inte- grated systems? Data management affects all markets, including facility management, but not only for the healthcare sector. In the past few years, our work in facility management has changed drastically thanks to the use of tools that collect and analyse data, thus making us more efficient in delivering maintenance services and allows us to guarantee energy savings. Enova has developed the Energy Saving Centre which provides an over- view of the actual energy consumption of a site. This allows our team of tech- nicians to personalise a service plan for each individual customer, which ultimately optimises maintenance and energy savings. The Energy Saving Centre would be a powerful tool that would help maintain healthcare facili- ties as it highlights any potential issues so they can be rectified before reach- ing crisis level. manages the utility plant in a num- ber of hospitals across the world, so Enova is best suited to combine their international expertise with a thorough regional knowledge of the Middle East and offer an excellent healthcare service. Most companies in the GCC are in- terested in promoting medical tour- ism. Do you think regional facilities have the potential to be a medical destination? The plan to make Dubai a medi- cal tourism hub is supported by the Dubai Health Authority and the UAE government. Globally, the concept of travelling for medical treatment is still in its infancy and the UAE has al- ready established itself in the top 20 destinations, due to its illustrious and luxurious tourism industry. Competing with traditional destinations such as the United Kingdom, Thailand, Swit- zerland and Germany, the UAE has more to achieve before it can claim the top spot. Medical tourists currently have a choice of 30,000 healthcare profes- sionals and 3,000 facilities to choose from but by 2020 this is predicted to grow to 40,000 professionals in 4,000 facilities across Dubai. Another part of the government’s large-scale plan for this ambitious project is to build 22 state-of-the-art hospitals to accom- modate the anticipated half a million medical tourists. Efficient FM will play a part in setting Dubai apart from the competition. What are the common challenges faced in maintaining a healthcare facility in this region? And what are some common mistakes made dur- ing maintenance? Some of the major challenges faced in maintaining a healthcare facility is en- suring the continuity of services to the site, including the provision of reliable and consistent energy. Any oversight in these areas could compromise the health and wellbeing of the patients. It is important to remember that while healthcare facilities can have similarities with commercial facilities, they cannot be maintained in the same way as a commercial or residential facility. For example, proper mainte- nance of the air-condition and filtra- tion systems is paramount in a hospi- tal environment to avoid the spread of disease or contamination, not only for the facility as a whole but also for specialised wards such as operating theatres, intensive care units or labo- ratories. As such, the type of equip- ment used has to be adapted to meet the unique requirements. With the healthcare industry quickly growing across the region, local facil- ity management companies should use this opportunity to seek advice from international providers in mature mar- kets who have the knowledge and ex- perience of maintaining operations of large scale healthcare facilities. Could you talk about how hospitals could implement better energy sav- ing in their facilities? To optimise energy saving in facilities, hospitals should adapt the temperature to the specific needs of each area. The needs for each room differ between public areas, patient areas, occupied and unoccupied rooms, medical areas and technical rooms and to provide the same services to each room is a waste of energy. Furthermore, ensuring the distribu- tion of energy is well balanced and managed by using the most suitable production equipment adapted to the specific needs of the hospital and maintaining it properly. Veolia, Enova’s shareholder, fully Saudi German Hospital, Dubai

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construction business news me October 2015 60 Panasonic Marketing Middle East and Africa (PM- MAF) is strengthening its efforts to grow its eco-so- lutions business with a newly refurbished flagship store, opening soon in Dubai. The facility will displaying the entire spectrum of electrical construction materials, air moving solutions for better Indoor Air Quality Manage- ment, sustainable energy Solar products and LED Lighting Fixtures. According to Tatsuya Kumazawa, director, Eco Solutions Division, PMMAF: “With the increasing de- mand from the construction sector for our products, we now offer a wide range of solutions for the entire eco solutions space. We are also in the process of refurbishing key Panasonic outlets in the region to give our customers the bigger picture of our offer- ings on a single platform.” In addition to its high quality Indoor Air Quality (IAQ) solutions, Panasonic is also engaged in aware- ness programmes to educate customers on the im- portance of ventilation solutions which are essential for a healthy living. PMMAF is developer of one of the most efficient solar panels in the world as it enables more power generation per square meter than conventional solar panels; and energy saving LED bulbs and fluorescent lamps, lighting fixtures and lighting control systems. V-KOOL, vendor of high-performance premium window film for automotive and architectural glass, has opened a new showroom in Ras Al Khaimah. The well-appointed outlet, which showcases the entire range of the brand’s premium tints, is a part of V-Kool’s vision to make its prod- ucts available easily across the UAE. The showroom was inaugurated in the presence of K T Govindarajan, president, V-KOOL, KAPICO Group, members of the V-KOOL UAE team and other guests. The products available at the outlet include V-KOOL™’s total car care solutions – the Ultramaster series, the V-KOOL Signature Series – J60 film, which rejects 99% of UV rays. It’s the world’s first wavelength selective window coating that provides a virtually transparent protec- tive barrier against the sun’s heat and radiation. “V-Kool will make its entire range of super protective film coatings, which combine high performance solar con- trol with high visible light transmission, to our discerning customers in Ras Al Khaimah,” said Mr. K T Govindarajan, President, V-KOOL, KAPICO Group. G EZE has been selected to endorse a full solution for the automated and manually controlled doors in Al Jalila Children’s Specialty Hospital a state of the art project with 200 Bed Hospital that shall provide tertiary and quaternary special- ised pediatric health services. All entrances of the large hospital building are equipped with GEZE Slimdrive SLNT, featuring a 7cm operator is barely visible when installed on the aluminum transom. The operator is connected with the main building management system to ensure complete control and maximum safety in case of emergencies. Other products speci- fied include GEZE Powerdrive PL for heavy doors, selected to operate the heavy sliding door leafs with a carrying capacity of 200kg/leaf and the ability to smoothly move the door for a wider clear opening passage. The architects also relied on GEZE Slimdrive EMDF system as a solution for the automatic swing doors inside the hospi- tal building. The Construction of Al Jalila Children's Specialty Hospital was completed this year and is exclusively fitted out with over 1,500 specialised products and drives from the GEZE Slim Line Range which provides the facility with an inclusive and fully automated solution for the doors at the entrance area and for the in- ternal automated/controlled doors within the hospital. D esso’s patented floor- ing solutions have been specified in contracts total- ing $1.3m. The projects in- clude The Cranleigh School in Abu Dhabi which selected Desso to install 5,600-square metres of its carpet tiles, and the capital’s Khalifa University commissioning a 14,500-square metre new carpet installation. Other projects include the GEMS Schools regional roll- out with a total of 20,200 square metres of carpeted space, and a number of ADEC Schools in Abu Dhabi, totaling 9,000 square metres. This year, Desso will de- liver its award-winning pat- ented flooring solutions to more than 25 schools and universities covering a total area of over 80,000 square metres. These projects are just some of the 355 educational projects currently active in the region; the majority of which (92%) are being de- veloped in Saudi Arabia, followed by Qatar, Kuwait, Oman, and the UAE. GEZE awarded Al Jalila Children’s Hospital contract Desso project pipeline valued at $1.3m Panasonic eco-solutions targets construction V-Kool opens new RAK showroom SUPPLIERS News

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CONTACTS For sponsorship & nomination enquiries contact: Awards@bncpublishing.net Nominations close September 27th OCTOBER 18, 2015 Ritz-Carlton Doha, Qatar Have you nominated your project yet? Choose from one of the categories below: INNOVATION OF THE YEAR HEALTH & SAFETY INITIATIVE OF THE YEAR SUSTAINABLE PROJECT OF THE YEAR SUPPLIER OF THE YEAR YOUNG ENGINEER OF THE YEAR CONTRACTOR OF THE YEAR ENGINEER OF THE YEAR OVERALL PROJECT OF THE YEAR MEP CONSULTANT OF THE YEAR SPECIALIST MEP CONTRACTOR OF THE YEAR PROJECT MANAGER OF THE YEAR FM COMPANY OF THE YEAR RESIDENTIAL PROJECT OF THE YEAR BEST DEVELOPER LIFETIME ACHIEVEMENT Awards Qatar 2015 Nominations close October 10th

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construction business news me October 2015 62 Event preview S erving as a networking platform for construc- tion product suppliers and buyers since 1979, The Big 5 International Building and Construction Show has become the largest construction show in the Middle East breaking regional records last year with over 2,801 ex- hibitors and 81,401 participants. According to Andy White is vice president of dmg events ME, organis- ers of the show, the slight dip in con- tract awards this year will not affect the growth in construction activities in the region. He said: “The Big 5 in Dubai is a main focus for suppliers to the region from across the world. Major infrastructure projects in Saudi Arabia and UAE have and will con- tinue to drive diversification, but what we've also seen is large-scale invest- ment being sustained across Oman, Kuwait, Qatar, and Bahrain.” Report by Ventures Onsite, GCC Construction Industry - Trends and Challenges for 2015, states that the value of contract awards this year in the GCC could reach over $194bn. This value has dropped by two billion, however the further dip in oil prices will mean building materials and transport costs will fall and that will filter down to contract values. White says that even though oil prices and its affect in construction markets has been heavily discussed, each of the GCC nations has shown continued heavy investment in infra- structure, housing, and healthcare. “Kuwait has more than trebled its con- tract awards this year, and the Saudi government has made it clear that it will continue to invest. The GCC Sec- retariat General has also announced that the Gulf Rail network is meeting construction deadlines and is on track to meet its 2018 deadline. “In the UAE, billions of dollars of investment in retail sectors, the ThInk Big Construction Business News ME looks behind the scenes in the run up to the biggest construction event in the region • 2,801 exhibitors from 61 countries • 81,401 participants from 147 countries • 55 free CPD certified educational events This year, visitors and exhibitors will have access to The Big 5 mobile app, available to download for free. The app provides a list of features including full event schedule, a per- sonalised agenda, exhibitor listings, floorplan maps, and social networking. It also includes speaker listings and the latest exhibitor informa- tion while also allowing visitors to schedule their own meetings and win prizes throughout the event. • General construction • Coatings, adhesives and sealants • HVAC • Steel • Building Interiors • Water technology • Windows, doors and cladding • Kitchens and bathrooms 2014 statistics: The show has eight product zones: The Big 5 app

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construction business news me October 2015 63 continued development of tourism and hospitality sectors, and upgrades to airports, transport, and logistics infrastructure mean construction is once again expected to be one of the biggest contributors to its GDP.” Major projects such as the Expo 2020 are behind the growth of the in- dustry and could create up to 277,000 new jobs, while projects put on hold between 2008 and 2010 are now being revived by the same developers or new developers. White emphasises that The Big 5 is a good way to generate sales leads and develop business interests in the Mid- dle East. “It is the focus of suppliers to the region and offers the chance to meet more than 2,800 manufacturers and distributors, source thousands of products that are certified and locally available, find cost saving and sustain- able solutions to projects, and select from over 30,000 innovative products that are unavailable anywhere else.” In addition to these benefits the event has developed a reputation for offer- ing visitors an unrivalled range of free professional development opportunities, including 64 CPD-certified workshops. As the demand for certified equip- ment, building materials, and expertise increases, The Big 5 will increase in size again in 2015. This year, the show will occupy new hall space at World Trade Centre with a section called The Big 5 Focus, which would be designed to make it even easier to find certified products that are available locally. Two major shows co-located with The Big 5 include the Middle East Concrete 2015 and PMV Live 2015, the show for all mechanical vehicles involved in construction. Last year the shows had over 36,000 interna- tional visitors. Nathan Waugh, dmg events’ portfo- lio director for the two shows, says: “The global construction equipment market is forecast to reach $241bn by 2020 and growth in the Middle East is a major part of this figure.” The Big 5 Dubai 2015, together with Middle East Concrete 2015 and PMV Live 2015, will run from November 23- 26 at the Dubai World Trade Centre.

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construction business news me October 2015 64 Construction Innovation Awards, Qatar October 18, Ritz-Carlton Doha The Qatar edition of the Construction Business News industry awards, will award companies across 15 categories recognis- ing the projects and people who have contributed towards the industry’s greatest innovations in the Gulf powerhouse that is Qatar. For information on nominations and attendance, email awards@bncpublishing.net Eye on earth 6 – 8 October St Regis, Saadiyat Island, Abu Dhabi Eye on Earth addresses the crucial importance of environmental and societal information and networking to decision-making. It aims to convene thought and action leaders of the worldwide community, converge consensus on the key areas of mutual importance, and finally collaborate towards strengthening exist- ing initiatives and filling the gaps into the future. Light ME 6 – 8 October Dubai World Trade Centre The Middle East’s Premier Conference and Exhibition for Lighting Design and Technology, held under the patronage of the Dubai Municipality, Light Middle East will present over 325 exhibitors showcasing a huge range of international brands. The three-day event will offer a comprehensive interactive platform for manufacturers, architects, designers, consultants, engineers, construction companies, hospitality industry professionals, government officials and more. Leaders in Design 15 – 16 November Dubai Leaders in Design MENA is key meeting place for interior design professionals from the region to discuss the latest global markets trends in the industry as well as learn and source 360° solutions for their diverse portfolios of projects. For years Leaders in Design MENA has encouraged business connections between international suppliers and interior de- signers providing a unique opportunity to explore the needs of the projects and get inspired by leaders, luminaries, and A round up of the latest and most sought-after exhibitions, conferences and seminars coming up in the construction industry Upcoming events The Big 5 - 23-26 November, Dubai World Trade Centre SAVE THE DATE legends from within and outside interior design industry and explore the potential that the region can offer. The Big 5 23 – 26 November Dubai World Trade Centre For over 35 years The Big 5 in Dubai has been home to the largest gathering of construction professionals in the Middle East. With exhibitors showcasing thousands of certified and innovative products from across the globe, free CPD certified workshops on offer and live product demonstrations, there is enough information for professionals from any discipline of the construction industry. This year the show will feature: 2,800 exhibitors from over 65 countries; 64 free certified educational workshops; 80,000 construction professionals and key buyers. Maintenance Middle East 23 – 26 November The Address Hotel Dubai The 21st annual Maintenance Management Conference provides a 360 degree overview of the latest methods in improving your maintenance management strategies and driving business KPIs. With a new, case study-driven agenda, the conference will provide practical guidance and field based techniques to key challenges executing maintenance strategies and tactics including; implementing an RCM strategy, improving equipment reliability, retaining skilled manpower, imple- menting ISO 55000 and understanding the latest technol- ogy advances and ROI maximization strategies for CMMS. Maintenance Management continues to cover all sides of the business and continues to be the only established main- tenance gathering in the region attracting over 100 industry leaders annually.

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construction business news me October 2015 65 Exclusive Media Partner Media Partners Sponsor For more information and registration, please call us on Tel:+ 420 601 354365 or email: registration@intlbc.com Organized by: www.intlbc.com Leaders in Design MENA Summit Speakers Where Design Meet Business LEADERS IN DESIGN MENA Dubai, UAE 15th-16th November 2015 The Only True International Event that Hosts the Design Community from Across the World www.interiorsummit.com

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construction business news me October 2015 66 NEWS T he UAE and the United Na- tions Industrial Development Organisation (UNIDO) has made a global announce- ment for the upcoming Global Manufacturing and Industriali- sation Summit (GMIS) series in Al Ain, while follows a year-long global cam- paign to generate support from public and private sectors for the initiative. The summit is an attempt to develop a global platform to discuss innova- tion in manufacturing by the UAE’s Ministry of Economy and UNIDO in collaboration with World Economic Forum’s Global Agenda Council on the Future of Manufacturing. It intends to address diverse aspects of manufacturing including innovation, infrastructure, small and medium-sized enterprises, value chains, industrial policy, the environment and skills. It aims to promote global standards amongst the sector by bringing togeth- er representatives from governments, industries, civil society, and academia, under one roof. At the presentation of the GMIS ini- tiative on June 2, 2015 in Abu Dhabi, UAE, UNIDO Director General Li Yong said that the Summit would be a catalyst for meeting these goals in line with manufacturing’s proven historic record as a crucial source of national and international development. UAE’s Minister of Economy H.E. Sultan bin Saeed Al Mansoori said that the summit was designed to create a global movement to help drive trans- formation in the manufacturing and industrial sector, and create sustain- able economies and inclusive societies worldwide. “This is a long-term pro- cess for which the inaugural summit is the beginning, not the end,” he stated. Linking the global north and south The announcement was made among several delegates and press gathered at Mubadala's Strata Manufacturing EDITOR'S PICK UAE prepares for GMIS Director General of UNIDO Li Yong at the Global Announcement Ceremony Adding to the diversity of its corporate events calendar, Abu Dhabi will host the first Global Manufacturing and Industrialisation Summit in September 2016 • The relationship between low and high value added manufacturing activities • Social and employment issues surrounding manufacturing and related urbanisation • The skill needs by manufacturing firms and how can they be catered for • The impact of incentives on manufacturing investment • Leveraging technology for innovation • How to integrate better SMEs into global value chains • How manufacturing and environmental concerns can be aligned Global issues to be examined at GMIS: facility. H.E. Al Mansoori along with Li Yong addressed over 200 delegates from the public and private sector and guest of honour, President of Guinea Prof. Alpha Condé, on the objectives and progress of GMIS. Dur- ing the ceremony, UNIDO entered a partnership with Republic of Guinea to assist the development of the West African country’s industrial sector, by policy advice and research and stud- ies to create job opportunities. President Condé looks at the agree- ment as a step towards establishing policies on industrial innovation and diversification. Impressed with UAE’s progress, he said that developing economies have to have the courage to move away from what they know and grasp the opportunity to develop something new. He aims to use diversification as a solution for Guinea’s economy and not to be at the mercy of commodity pricing. “We must diversify into new industrial options, so that our GDP can grow not just because of increased commodity prices or enhanced produc- tion, but because it has developed new value propositions that are adjacent or separate to existing economic drivers.” Dignitaries at the Strata Manufacturing facility in Al Ain

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