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THE BUSINESS OF CONSTRUCTION
Standing Strong
BIG PROJECT ME CELEBRATES THE RESILIENCE AND ACHIEVEMENTS OF CONSTRUCTION IN 2020
Experience the Progress.
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CONTENTS
February 2021
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16
18
22
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38
ANALYSIS
FEATURES
INSIGHT
08
The briefing
22
50
Comments
The big picture
Gavin Davids speaks to leaders in the construction sector to get their thoughts and insights about the year ahead for the construction industry
53
Tenders
Progress report
Industry experts discuss real estate recovery and the opportunities available in renewable energy
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2021 Outlook Ready to transform
The industry’s brightest minds share their thoughts on a variety of topics and issues impacting the construction industry
Providing a wrap-up of the biggest local, regional and international construction news stories
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Big Project ME, in association with ProTenders, provides the biggest tenders for the month of February 2021
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Market report
Big Project ME celebrates the achievements and the resilience of the construction sector in 2020 at the annual Big Project Awards
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18
Analysis
CORE report examines the state of Dubai’s crucial residential real estate market
Big Project Awards 2020 A night under the stars
RAK AMI Hotel announces the installation of the longest suspension bridge in the Northern Emirates
Phil Malem says that the customer experience will remain at the heart of the public service industry in 2021
MEConstructionNews.com | February 2021
2
WELCOME
Introduction
Work better together
O
n January 26, 2021, I was delighted to be able to get up on stage and around 180 guests to the Big Project Awards 2020 – a very different event compared to what is usually held. Obviously, with the pandemic continuing to disrupt lives, businesses, and economies around the world, to be able to hold an awards ceremony in the first place is a major achievement. This was only possible due to the diligent and stringent efforts of the Big Project ME team, as they put into place (in strict compliance with DTCM guidelines) protocols to keep guests safe. All of this was achieved due to the close partnership with the staff and management of Ritz Carlton JBR. Working on delivering these awards was a very stressful but rewarding experience because it showed me that no matter what the challenges are, we can still deliver a successful outcome if we just work together, communicate, and share information in a timely manner, and make sure that everyone does their job in the
February 2021 | MEConstructionNews.com
right manner, so that we can go home at the end of the day, safe and sound. That is quite the metaphor for the construction industry, isn’t it? While going through the nominations with my fellow judges, this message was hammered home by many of the submissions. Although HSE has always been on the agenda, this year’s nominations really honed in on its importance, and I was delighted to see that quite a few leading companies are beginning to focus on the crucial issue of mental health in the construction industry as this is a high-stress, demanding and draining environment to work in, particularly as part of the labour workforce. Therefore, it is incumbent on companies to ensure that every aspect of employee wellbeing is looked after, especially in these uncertain times. As we look forward to the year ahead, it’s hard to predict what lies in wait, but the early indicators are promising. Let’s hope that the recovery of the industry is underway, as the experts seem to think it is, and that we emerge from this ongoing crisis with the resolve to work better together.
Gavin Davids
HEAD OF EDITORIAL & CONTENT gavin.davids@cpitrademedia.com @MECN_Gavin MEConstructionNews me-construction-news
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THE BUSINESS OF CONSTRUCTION
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Standing Strong
BIG PROJECT ME CELEBRATES THE RESILIENCE AND ACHIEVEMENTS OF CONSTRUCTION IN 2020 ON THE COVER
Big Project ME celebrates the winners of the Big Project ME Awards 2020, held on January 26, 2021 at the Ritz Carlton JBR
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February 2021 | MEConstructionNews.com
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ONLINE
MOST POPULAR
READERS’ COMMENTS
FEATURED
CONSULTANT
SAUDI ARABIA TO END QATAR BLOCKADE
Revealed: Middle East Consultant 2020 award winners
I think we can all warmly welcome this news (Saudi
Arabia to end Qatar blockade) but there is a long way to go until Qatar can prove it can be a fully fledged partner in the PROPERTY
GCC. It’s been a number
Samana Developers increases salesforce in anticipation of positive 2021
of years since I made the hop from Sharjah to Doha on the early morning Fly Dubai flight. Many of our visits then were part of
ANALYSIS: How Dubai is topping the GCC’s LEED rankings
a strategy to break into the FIFA World Cup 2022 construction market and it proved a frustrating
CONSTRUCTION
process of streams of red
Emaar EC sets up $479mn fund for Rixos Emerald Shores in KSA
tape and searching for a local partner that was more interested in good business than excessive profiteering. There was a time when Qatar was taking the initiative on things like safety and sustainability – hopefully
CONSULTANT
those virtues remain
UAE becomes world’s first country to produce aluminium using solar power
relevant. Our return to the market will be a tentative one but we are optimistic that the past three years have taught everyone that you must arrive on the Corniche with a solid understanding of what is required, proper legal
CONSTRUCTION
Qatar seeks fresh bids for Facility E IWPP water and power project February 2021 | MEConstructionNews.com
MARKET REVIEW: Development in Bahrain where next for the kingdom?
backing and an open mind. Name withheld by request
8
THE BRIEFING
Real Estate
Will Real Estate Recover? MIDDLE EAST
Dana Salbak, head of Research at JLL MENA discusses the real estate market’s transparency in the region and how Dubai has maintained its position as the most transparent market in the region
J
LL’s UAE 2020 Year in Review report found that two critical themes were accelerated by the pandemic, and are likely to shape the real estate recovery in 2021 are sustainability and tech adoption. The report states that while uncertainty will persist in the New Year and recovery will vary across sectors and industries, accelerating digital capabilities and focusing on sustainable performances can redefine business success. Big Project ME sits down with Dana Salbak, head of Research at JLL MENA, to analyse the region’s real estate market as well as Dubai’s increasing attractiveness as an investment hub within the region; the city climbed three ranks to maintain
February 2021 | MEConstructionNews.com
Weak improvement The 2020 Index reveas that while transparency is improving across most countries and territories, overall improvement is the weakest since the GFC.
$15.8b
Total value of the UAE’s 2021 federal budget
its position as the most transparent market in the Middle East. Salbak says: “Overall the 2020 Index reveals that transparency is progressing across most countries and territories, but overall improvement is the weakest since the period directly following the Global Financial Crisis. While 70% of territories have registered an improvement in score, many cities are struggling to maintain progress.” “Within the region, while transparency remains below the global average, progress is driven by GCC countries, mainly the UAE and Saudi Arabia; of course, there are variances in each sub-component. While the UAE and Saudi Arabia performed well in the Governance of Listed Vehicles and Debt Regulation categories,
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100% Foreignownership of companies will encourage investment
Critical role Salbak says that digitisation and innovative technologies will play a crucial role in driving economic recovery.
the UAE performed particularly well in the adoption of various technologies in real estate as well.” “However,” she adds, “In other areas such as Market Fundamentals and the availability of Property Indices and Sustainability, the region lags behind the global average, and further transparency is required to continue attracting investors.” Salbak points out that Dubai is seen as an investment hub within the region due to several reasons. It is a budding innovation-led-economy, home to the largest number of multinational corporations in the region, attracts high-tech foreign direct investment, and has succeeded in fostering an active start-up and entrepreneurial culture, she adds. Commenting on the legal and regulatory environment that has emerged due to the pandemic, she says that the various relaxations to social and personal rules and regulations are bound to continue attracting expats to the city, and will, in turn, reflect positively on the real estate sector. Additionally, Salbak says that the government’s fiscal stimulus and support, along with various private sector initiatives that were taken to alleviate the pressure on tenants and occupiers, ensured that spaces continued to remain occupied despite lockdowns. This was also supported by the continued commitment to social development, including welfare, health, and education, as outlined in the 2021 $15.8 billion (AED 58.3 billion) federal budget, according to JLL’s report. “Similarly,” she says, “The latest regulation allowing for 100% foreign ownership of companies is likely to encourage businesses to continue expanding in the region, with Dubai as their chosen HQ, while also making it easier for SME’s to set up shop in the emirate.” Salbak summarises that what happens post-pandemic is dependent on the agility and the flexibility implemented by the various stakeholders, and that innovative solutions will help sectors come out of stagnation.
Retail and hospitality witnessed severe pressures as a result of travel restrictions and a reprioritisation in consumer spending as household incomes contracted” “We’re seeing corporate occupiers adopt hybrid models of working, whereby a corporate HQ houses the main management and support functions, while others work from co-working spaces or continue to work from home,” she remarks, adding that corporates are now diversifying instead of cutting back their footprint. Salbak further points out that digitisation and innovative technologies play a crucial role in supporting the retail sector. She states that those retailers who were able to jump on the e-commerce
bandwagon quickly have retained a large amount of their consumer base while growing their footprint. Additionally, she says that the hospitality sector will continue to look at domestic tourism as the primary source of income for various hotels in the short-to-midterm, and that those hotels which have managed to incorporate the proper safety and social distancing measures are the ones which have been able to earn the trust of the customer. Salbak states: “Globally, the residential market was able to remain resilient despite some natural loses in performance recorded across various pockets. However, the retail and hospitality market, on the other hand, witnessed severe pressures as a result of travel restrictions and a reprioritisation in consumer spending as household incomes contracted.” JLL’s UAE 2020 Year in Review report suggests that the nature of demand in the future will focus on projects delivering true customer service through amenities, health and safety, and blended uses, and that developments meeting these requirements will outperform.
MEConstructionNews.com | February 2021
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THE BRIEFING
Renewable energy at the forefront MIDDLE EAST
Jeremy Crane, CEO & cofounder of Yellow Door Energy talks to Angitha Pradeep about the impact of the pandemic on the renewable energy sector in the region, and the new opportunities created due to it
February 2021 | MEConstructionNews.com
T
he International Energy Agency (IEA) in its Renewables 2020 report, says that despite the challenges emerging from the COVID-19 crisis, the fundamentals of renewable energy expansion have not changed. The report notes that solar photovoltaic (PV) and onshore wind are already the cheapest ways of adding new electricity-generating plants in most countries today. IEA’s report confirms that in the Middle East, annual growth is expected to rebound in 2021, due to the commissioning of independent power projects awarded in the UAE, Qatar and Oman. More than 20 GW of solar PV is also expected to be added during 2020-25, which will be led by the UAE, followed by Saudi Arabia, Egypt, Qatar and Oman.
With the Middle East region recognising the socio-economic benefits of renewable energy deployment, Big Project ME sits down with Jeremy Crane, CEO & co-founder of Yellow Door Energy to understand the perceived opportunities of industrial diversification, new-value chain activities, and the impact of the pandemic on the region. “COVID-19 has caused a decline in oil consumption, leading to a reduction in oil prices. We’ve witnessed a decrease in trade, a significant negative impact on the hospitality industry and ripple effects in many other sectors.” “However, specific to solar projects, energy investors are looking for stable investment options, and solar is a strong contender. In 2020, renewable energy proved to be a priority as companies looked toward cost reduction initiatives while still achieving their
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New realities Crane states that businesses across the region have adapted to the new reality and that recovery is on the way, especially in the UAE.
60m kWh
Image: Ghadir Shaar
Clean energy generated by Yellow Door Energy’s solar plants in 2020
sustainability targets,” says Crane. He adds that businesses across the region have adapted to the new reality and recovery is on the way, especially in the UAE, with the government’s deployment of generous stimulus packages. Apicorp’s report titled Beyond Energy: How MENA economies emerge post-2021, states that the Middle East region as a whole allocated 2.7% of GDP to fiscal measures, while central banks directly injected 3.4% of GDP into the economy. The report adds that while there are concerns that massive stimulus plans might create enormous unproductive debt overhangs, the priority at the current stage is to induce growth as quickly as possible in the real economy. Crane says, “Now more than ever, businesses need to focus on driving down costs, as well as being extra selective about where to allocate their capital. This shift in focus will fuel the growth for project financing opportunities, such as through solar power purchase agreements (PPAs). The shift from CapEx to Opex continues to be a growing trend as businesses look for ways to reduce cost and switch to clean energy, all without any upfront investment.” “As businesses recover, they will look for ways to save money while not losing sight of their sustainability targets. A solar agreement enables them to achieve both objectives – reduce electricity costs and switch to clean energy.” “The UAE has been very forwardthinking in its renewable energy vision, as evidenced by its Energy Strategy 2050. In 2020, our operating solar plants generated 60 million kWh of clean energy, equivalent to reducing carbon emissions by 36 million kilograms or planting 600,000 trees,” he explains, adding that they also signed new projects worth $41 million in 2020. Looking ahead, Crane says that he sees opportunities in expanding to other emirates outside of Dubai. However, he adds that it is critical to have the regulatory framework, along with policies that support independent power generation, in place. He adds that as an independent UAE-based solar provider, they encourage all businesses to reach
Specific to solar projects, energy investors are looking for stable investment options, and solar is a strong contender. In 2020, renewable energy proved to be a priority as companies looked toward cost reduction initiatives while still achieving their sustainability targets” out for a free assessment of their solar potential. Crane was also quick to point out that they deliver customised, reliable energy solutions committed to helping businesses become more cost-competitive and sustainable in the long run. “In the last quarter of 2020 alone, we signed 15 MW of solar agreements worth more than $10 million of
investment across our markets. This demonstrates businesses’ interest in saving money while becoming more sustainable,” Crane states, adding that their track record entails over 110 MW of solar projects in the region. The International Renewable Energy Agency states that the ambitious targets set by countries in the Middle East region are expected to translate into a combined 80 GW of renewable capacity by 2030. IEA notes that the main policy driver for this trend is the use of competitive auctions, which account for over three-quarters of the region’s growth and have produced recordbreaking tariffs awarded to solar PV. In the past year, bids at the lower end of the spectrum ranged from $13.5/ MWh to $16.9/MWh thanks to a good resource potential, economies of scale, and access to low-cost financing and land. However, IEA also observes that these prices are very marketspecific, reflecting favourable financing conditions and land affordability that may not be replicable in other markets. “As the pandemic persisted, we received more inquiries from businesses interested in our agreements, in order to save money and put solar on their roofs, all without any upfront investment,” Crane concludes.
MEConstructionNews.com | February 2021
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THE BIG PICTURE
01 UNITED STATES
03 BELGIUM
Skanska JV selected to deliver airport expansion
Trafigura JV’s first project to be 25MW plant in Belgium
Construction firm Skanska in a joint venture with New South Construction, FS360 and Synergy Construction has been selected to construct five additional gates at the north end of Concourse T at Hartsfield-Jackson Atlanta International Airport. The $124.5mn project forms part of a broader expansion and renovation plan. Construction of the new concourse is set to begin in this month and is expected to be completed by December next year. Work is already underway at the airport including demolishing and relocating existing facilities and infrastructure.
02 UNITED KINGDOM
Graham constructs new $109mn retirement village UK-based construction firm Graham Group has been selected by Audley Group for the construction of its new $109mn retirement village in Cobham, UK. The new village, named Audley Fairmile, will offer 74 luxurious twobedroom properties based around central facilities housed in the Audley Club. Located near Esher and Epsom, the Audley Fairmile village will also include a swimming pool, health club, restaurant, and bar bistro. Graham stated that the amenities will be available to Audley property owners as well as the people from the local area.
Commodities trading company Trafigura has said that it is building a large-scale battery storage plant in Belgium through a newly-launched renewable energy joint venture company. Construction on the project is expected to begin in the first half of this year for completion during 2022. Trafigura stated that the project will use lithium-ion batteries with 25MW rated output and 100MWh capacity (four hours duration). Trafigura also stated that it is adding a pipeline of 250MW of early-stage development renewable energy projects.
04 PORTUGAL
06 EGYPT
EIB to finance wind farms in Portugal
First tower in Egypt’s new capital completed
The European Investment Bank is to provide $78.8mn to finance two onshore wind farms in Portugal with a total capacity of 125MW. BPI will supply an additional $57mn to EDP Renováveis (EDPR) for the two projects in the districts of Coimbra and Guarda, a statement said. EDPR will design, construct and operate two medium-scale wind farms: Tocha II, with a capacity of 33MW, and Sincelo, with a capacity of 92MW, it added. The project is expected to create approximately 560 temporary positions during its construction phase.
The first office tower in Egypt’s new capital in the desert east of Cairo has been sealed, China State Construction Engineering Corporation (CSCEC) has announced. The C08 office tower had the final piece of its curtain wall installed at the beginning of this year, making it “the first building to finish” in the new city’s central business district. CSCEC won a $3bn contract to deliver a batch of 20 towers for the as-yetunnamed New Administrative Capital’s central business district in October 2017. It is scheduled to hand them over to the Egyptian government by 2022.
February 2021 | MEConstructionNews.com
05 SENEGAL
DP World to build $1.1bn superport Dubai port operator DP World has signed an agreement with the government of Senegal to develop a deep water seaport at the town of Ndayane, about 50km southeast of the capital, Dakar. According to the deal with Dakar Port Authority, DP World will finance, design and build a greenfield port on a 6 sqkm site near the Blaise Diagne international airport. DP World Dakar, the Senegalese subsidiary of DP World, will invest $837mn in the first phase and $290mn in the second, making it the largest private sector infrastructure investment in the history of the country.
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THE BIG PICTURE
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08 KUWAIT
Work on $1.3bn Kuwait International Airport reaches 40% 07 IRAQ
Daewoo wins major port contract in Iraq The government of Iraq has awarded a $2.625bn contract to South Korea’s Daewoo Engineering & Construction to build the first phase of a major and long-planned new port capable of berthing the world’s biggest container ships. The deal sees Daewoo building five births and dredging a navigable channel at Al-Faw, which lies at the tip of Iraq’s narrow coastline. In its first phase, the Faw port will be able to receive three mn containers a year, allowing Iraq to handle commodities in large volumes for the first time. Daewoo will also build a tunnel, container terminal and roads to the nearby city of Basra.
Work on the new terminal building at Kuwait International Airport is moving at a steady pace despite the COVID-19 situation, with nearly 40% of the project already completed. Once completed, the T2 project will be one of the most advanced and environmentally conscious airports in the world and will be regarded as an iconic gateway into Kuwait. Covering an area of 1.3mn sqm, the project is located between the eastern and western runways and consists of aircraft parking and a runway linked to the existing runways of Terminal 2.
09 BAHRAIN
Bahrain Housing Ministry announces delivery of 5,000 homes 5,000 residential units in Salman Town have been distributed to beneficiaries according to Bahrain’s Housing Ministry. According to a report by the Bahrain News Agency, Salman Town is one of the main projects of the ministry being implemented on the royal order of His Majesty King Hamad bin Isa Al Khalifa to build 40,000 housing units. A senior official from the Housing Ministry said this is part of the modern design of the fifth generation of residential buildings that the ministry is implementing in new housing cities and complexes.
MEConstructionNews.com | February 2021
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THE BIG PICTURE
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10 SAUDI ARABIA
12 UNITED ARAB EMIRATES
NEOM to have hyper-connected communities
Abu Dhabi’s Al Qana on track for 2021 launch
Saudi Arabia has announced its latest project – The Line – a revolution in urban living at NEOM. A cornerstone of Saudi Vision 2030 and an economic engine for the Kingdom, The Line is expected to drive diversification and aims to contribute 380,000 jobs of the future and $48bn to domestic GDP by 2030. Construction will begin in Q1 2021. The Line is a 170km belt of hyperconnected future communities, without cars and roads and built around nature, and will have all daily services within a five-minute walk.
February 2021 | MEConstructionNews.com
11 SAUDI ARABIA
ACCIONA completes desalination plant construction Spain-based ACCIONA has announced that it has completed the construction of the Al Khobar I desalination plant in Saudi Arabia and that the plant is producing water beyond its nominal capacity since December 26, 2020. The plant, which will produce 210,000 cu. m of drinking water per day, will supply a population of 350,000. The testing program and the commissioning of the plant was done remotely, using digital twin technology. Due to the digital twin technology, a team of specialists in Madrid was able to start the tests and the plant up remotely.
UAE-based Al Barakah International Investment has said that more than 90% of the work have been completed on Al Qana, Abu Dhabi’s latest entertainment destination, which is due to open this year. Al Barakah said that 95% of the aquarium is completed at the project whereas 85% of the cinema has already been built. Additionally, 85% of the landscaping is completed, while the food and beverage outlets are gearing up to take handover of their units. Al Barakah International Investment also stated that 85% of construction work on The Bridge Wellness hub is completed.
THE BIG PICTURE
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14 OMAN
Oman opens new 18km stretch of dual carriageway 13 UNITED ARAB EMIRATES
Consortium reaches financial closing of world’s largest solar project EDF Renewables and Jinko Power consortium says it has reached the financial closing of the world’s largest solar project and has begun construction on the project in Abu Dhabi. Completion of this milestone allows the mobilisation on site and start of construction. Located in the Al Dhafra region, this solar photovoltaic plant will be the largest single-site solar plant worldwide. EDF Renewables and Jinko Power hold respectively 20% of the shares, the remaining 60% is owned by TAQA and Masdar.
Oman has opened its new 18 km stretch of the Adam-Haima-Thumrait dual carriageway for traffic. The dual carriageway is the longest in the Sultanate, starting from the Wilayat of Adam in the Governorate of A’Dhakiliyah to the Wilayat of Haima in the Governorate of Al Wusta. The project serves the Duqm Economic Zone and the oil fields in the desert areas. Additionally, Oman’s Ministry of Transport, Communications and Information Technology has recently awarded the contract for the remaining 400 km stretch from Haima to Thumrait.
15 UZBEKISTAN
Masdar completes financing for 100MW Nur Navoi project Masdar has completed the financial close of the Nur Navoi Solar Project – Uzbekistan’s first successfully financed independent power producer (IPP) solar project. Loan and guarantee agreements to finance the 100-megawatt photovoltaic plant have been signed. The landmark project will drive the development of Uzbekistan’s IPP market, and enable it to increase the share of renewable energy in the energy mix, according to Shukhrat Vafaev, deputy minister of Investments and Foreign Trade of the Republic of Uzbekistan.
17 INDIA
L&T Construction finishes India’s first 3D building 16 PAKISTAN
Pakistan-Russia to build 1,100 km gas pipeline Pakistan will start building a 1,100 km pipeline in July with Russia that will allow it to operate more liquefied natural gas (LNG) terminals. Pakistan will have a majority share of 51-74% in the project, while Russia will own the remainder of the project. Pakistan’s gas distribution companies Sui Southern Gas Co. and Sui Northern Gas Pipelines Ltd., which have started acquiring land for the pipeline, will be a part of the project, while a Russian consortium will lead the construction, according to Nadeem Babar, petroleum adviser to Pakistan’s PM.
Larsen & Toubro Construction has 3D printed a Ground plus one building for the first time in India. The 3D printed building has a built up area of 65 sqm. and has been built with a special, in-house developed concrete mix using indigenously available regular construction materials. The building was printed with both vertical reinforcement bars and horizontal distributors using welded mesh. Barring the horizontal slab members, the entire building structure was 3D printed ‘Cast in Situ’ at the job site in an ‘open to sky’ environment within 106 printing hours.
18 CHINA
Work starts on $1.5bn e-sports arena in Shanghai Chinese property company SuperGen Group has broken ground on an e-sports complex in Shanghai with a total project value of $1.5bn. The arena will be located in a 500,000 sqm. industrial park in the Minhang District in the south of the city. The plan includes a 6,000-seat arena that will host around 300 competitive matches a year. The project also includes a five-star video-game-themed hotel, a breakdancing facility, an indoor skydiving venue and a corporate headquarters for Edward Gaming (EDG), a subsidiary of SuperGen.
MEConstructionNews.com | February 2021
16
MARKET REPORT
Industry outlook
Dubai 2020/2021 Residential Market Outlook UNITED ARAB EMIRATES
CORE’s Dubai Annual Report for 2020/2021 examines the state of the emirates’s crucial residential market
C
OVID-19 was a black swan event that brought unprecedented challenges and dominated all our conversations, business practices and occupier behaviour over 2020 and its impact expected to continue in 2021. However, Dubai outperformed most global cities as the government’s efficient measures to mitigate the impact of COVID-19 while maintaining business continuity, providing multiple stimulus packages to aid the economy and most importantly the recent vaccine roll-out has bolstered market sentiment and paved the way for a stronger 2021. RESIDENTIAL SUPPLY: Dubai saw nearly 36,000 units delivered in 2020. The report conservatively
February 2021 | MEConstructionNews.com
forecasts nearly 39,000 units for 2021, however, further revisions are expected as forecasts will inherently depend on buyer confidence and an uptick in market sentiment as developers continue to adjust to ongoing market conditions. RESIDENTIAL TRANSACTION TRENDS: Despite a challenging 2020, ready sales market transaction activity saw an increase of 7% over 2019 volumes. Significantly lower buying costs and a raft of government led demand drivers are the biggest factors currently supporting transaction activity. In fact, after the initial slump in April and May 2020 due to movement restrictions, December witnessed the highest monthly transaction volumes in two years. RESIDENTIAL SALES MARKET: Apartment districts continue to see sharp declines, with a few prime districts such as Downtown Dubai (-4%), Palm Jumeirah (-4%) comparatively bucking the trend. The more affordable apartment districts such as Discovery Gardens (-15%) and Dubailand (-15%) have been the weakest performing areas over 2020. Looking historically from the peak values of 2014, villas dropped nearly 31% while apartment districts dropped over 35% with older districts such
as JLT and Discovery Gardens witnessing over a 40% drop over the last six years. 2021 RESIDENTIAL MARKET FORECAST: • Sales prices and rents to remain under downward pressure with apartment districts expected to face further headwinds while established villa districts that saw strong take-up over H2 2020 and now have limited supply are expected to see price resilience. • Flexibility in lease terms as the market largely remains tenant-friendly with most landlords willing to negotiate to retain tenants, particularly in apartment districts. With household incomes expected to remain under pressure, we foresee most tenants remaining price sensitive. • Secondary sales transactions are expected to be steady as underlying demand is supported by lower capital values and demand drivers such as financial, visa and social reforms. • Lower new launch volumes: While oversupply concerns persist in the near term with ample new supply and unabsorbed inventory, new launches were at the lowest level in 2020 compared to the last eight years. We expect new launch volumes to further reduce in 2021 as developers re-strategize and focus on absorption of existing inventory.
MARKET REPORT
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RESIDENTIAL DELIVERIES IN DUBAI 2011 - 2021 NUMBER OF UNITS IN THOUSANDS 40 30 20 10 2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
RESIDENTIAL TRANSACTION VOLUMES IN DUBAI 2020 SECONDARY MARKET TRANSACTIONS OFF-PLAN TRANSACTIONS 2500 2000 1500 1000 500 Jan 20
Feb 20
Mar 20
Apr 20
May 20
Jun 20
Jul 20
Aug 20
Sep 20
Oct 20
Nov 20
Dec 20
Significantly lower buying costs and a raft of government led demand drivers are the biggest factors currently supporting transaction activity” DUBAI VILLA SALES PRICES Q4 2019 VS. Q4 2020 YEAR-ON-YEAR % CHANGE CHANGE IN PRICE SINCE PEAK 2014 0% -10% -20% -30% -40%
Emirates Hills
Palm Jumeirah
The Lakes
Dubailand
JVC
The Springs and The Meadows
Jumeirah Park
Arabian Ranches
DUBAI APARTMENT SALES PRICES Q4 2019 VS. Q4 2020 YEAR-ON-YEAR % CHANGE CHANGE IN PRICE SINCE PEAK 2014 0%
Source: ProTenders
-10% -20% -30% -40%
The Greens & The Views
Dubai Sports City
Discovery Gardens
JLT
Dubailand
DIFC
JVC
Business Bay
Dubai Marina
Downtown Dubai
Palm Jumeirah
MEConstructionNews.com | February 2021
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ANALYSIS
2021 Outlook
2021: The year of innovation, data and collaboration MIDDLE EAST
Phil Malem, CEO of Serco Middle East, shares his thoughts and predictions for a year where the customer experience will remain at the heart of the public services industry
I
n a post Covid-19 era, service excellence in all sectors and putting end-users first to improve experiences will be front and centre for the UAE. More and more governments will turn to outsourcing in 2021 in the wake of the pandemic, to give more flexibility, increase cost savings and to increase efficiency, thus enabling governments and entities to focus on their main areas of specialism and the tasks at hand. This will be realised through frontline services, use of automation services (including robotics and AI) and behavioural insights which can enhance the customer experience. The outsourcer will bring with them an outsider’s view and therefore a fresh perspective,
February 2021 | MEConstructionNews.com
Automate to improve Automation will support higher productivity and enhanced performance, while minimising risk and reducing costs.
200+
Serco is helping clients automate 200+ processes
along with years of experience and best practice. And for governments, choosing the right partner with the right financial, technical, and operational track record is absolutely pivotal to success. AUTOMATED SOLUTIONS TO IMPROVE EFFICIENCIES Automation will support higher productivity and enhances performance, whilst minimising risk and reducing operating costs. This is also true for process automation and technologies based on artificial intelligence, which can bring benefits across numerous functions of government, including much lower operating costs, more efficient processes, and less wastage and errors. From a citizen perspective
ANALYSIS
having a single touch point to address the majority of their needs makes for happier customer experience. There are several interesting Automated Solutions for clients that have been enabled or will continue to be enabled in recent times. One example from Serco is the Paperless initiative we are enabling for one of our clients to automate 200+ processes using an integration layer and low code platform integrated into multiple client-owned and existing systems. This leverages a number of tools within the AI technology stack, to automate operations and maintenance activities and approval process. This is aligned to the Dubai Paperless Strategy which seeks to eliminate paper wastage beyond 2021. Another example of how we are supporting governments globally is in the consolidation of Contact Centres. By centralising and standardising access for Citizens, instead of having a number of different Government Departments to navigate around for information and support, the time taken from users to gain access to a service is reduced and has a much more effective end to end user experience. CUSTOMER EXPERIENCE REMAINS PARAMOUNT After a year of turbulence, the customer experience has never been more important. A great customer experience breeds loyalty, as well as boosting happiness and
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After a year of turbulence, the customer experience has never been more important. A great customer experience breeds loyalty, as well as boosting happiness and a sense of positive wellbeing” Positive experience Malem says that after a year of turbulence, the customer experience has never been more important.
No margin for error With Expo 2020 Dubai set to happen this year, there must be no margin for error in the customer journey.
a sense of positive wellbeing. And when it comes to public services, its effects cannot be underestimated. 2021 is the year of the much-anticipated Expo in Dubai, and therefore millions of visitors will be experiencing the UAE for the first time. There’s no margin for error, so everything within the customer journey, from the booking and planning the trip, to the airports, to the transportation, local attractions and the event itself need to ensure the customer experience remains paramount. Whilst good customer experiences may not always be remembered, a bad one certainly will. So, with such positive events happening next year,
we will start to see an even greater focus on investment in this area. IMPORTANCE OF UNDERSTANDING CUSTOMER BEHAVIOUR To create these excellent customer experiences, we need to understand customer behaviour first. What do people think of a service? Is it meeting their needs and surpassing expectation? Data plays a huge role here when it comes to providing real-time information to analyse patterns about the customers’ wants and needs. This insight will play a huge role when thinking about the UAE’s focus on tourism in 2021, as economies look to accelerate out of COVID.
MEConstructionNews.com | February 2021
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ANALYSIS
no doubt that the healthcare industry has been the lifeblood of economies in 2020, and therefore investing in and creating a sustainable infrastructure will run through to 2021. Technology continues to play a key role here not only in terms of innovations in medical care when it comes to diagnosis and treatment, but also in terms of managing people, ensuring that the most critical patients are seen to first. This again extends to the whole patient journey, so technology can play a role in ensuring the patient is given the best possible experience, from the moment of entering to the moment of being discharged. The impact this patient centric approach has is phenomenal, even helping aid recovery through this positive journey.
By investing in training that has an international flavour and focus, we are not only enhancing the skill sets of our workforce, but we are also helping to create global citizens, that have the future skills we need from the leaders of tomorrow” By analysing such data, customerfacing touch points - whether that’s an experience of shopping in a mall or using public transport to get to a destination can be enhanced and transformed thus leaving a positive perception of that interaction, and them likely wanting to repeat the experience. Its effects in terms of creating a best-in-class destination for those who live, visit and work in the country should not be underestimated, and data is very much the enabler to understanding the customer experience. This is why we have been excited to see the success of our integrated, research, design and delivery offering, ExperienceLab, which in alignment
with our business focus on managing people, data and assets, helps harness behavioural insights to transform a customer’s experience when they interact with a service or product. As such, with so much flux in 2020, there will be a renewed emphasis on the power of data to really bring about a level of customer experience we have simply not seen before, and the UAE has the opportunity to be the authors of this. TECHNOLOGY: THE DRIVING FORCE BEHIND HEALTHCARE IN 2021 Extending from data, technology, of course, will continue to play a vital role in driving innovation in 2021. There’s
February 2021 | MEConstructionNews.com
Local expertise Nationalisation will continue to be a priority in the UAE and KSA.
2021
Technology will continue to drive innovation in 2021
A LOCALISED WORKFORCE, WITH INTERNATIONAL EXPERTISE Investing in the leaders of tomorrow will be a big priority as well, with Nationalisation continuing to be a priority across UAE and KSA. What will be important in our role as leaders in the private sector, is how we can support this, by creating a localised workforce, but with international expertise. By investing in training and development that has an international flavour and focus, we are not only enhancing the skill sets of our workforce, but we are also helping to create global citizens, that have the future skills we need from the leaders of tomorrow.
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2021 OUTLOOK
Industry Outlook
Ready to Transform
LEADING VOICES IN THE REGIONAL CONSTRUCTION INDUSTRY SHARE THEIR THOUGHTS ABOUT THE YEAR AHEAD WITH BIG PROJECT ME, HIGHLIGHTING THE CHALLENGES AND OPPORTUNITIES THAT WILL ARISE AS THE INDUSTRY LOOKS TO ADAPT AND REPOSITION ITSELF
February 2021 | MEConstructionNews.com
2021 OUTLOOK
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MEConstructionNews.com | February 2021
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2021 OUTLOOK
ccording to a GlobalData report, the construction output growth forecast for the Middle East and North Africa region is set to contract by 4.5 percent in 2020, before recovering with a growth of 1.9 percent in 2021 and 4.1 percent in 2022. The data and analytics company’s report explains that the 2020 contraction is a reflection of the severe impact of the COVID-19 lockdowns, as well as the other restrictions on construction activity. “The construction sector will face headwinds in 2021 with a slow recovery, but the pace of recovery will be uneven across countries in the region. Throughout 2020, and running to 2021, spending on real estate megaprojects, especially in the GCC, is likely to take a backseat as a result of budget revisions,” Yasmine Ghozzi, economist at GlobalData, comments. For Saudi Arabia, GlobalData has slightly revised up its forecast for the Kingdom’s
construction output to -1.9 percent from -2.8 percent, adding that it expects a recovery for the sector of 3.3 percent in 2021. This revision reflects an improvement in economic performance, the report adds – pointing out that the Public Investment Fund (PIF)’s investment of $40 billion (5 percent of GDP) per annum in the economy in 2021-2022 has underlined this recovery. Although Globaldata maintains its forecast for construction output growth in the UAE of -4.8 percent, a rebound of 3.1 percent in 2021 is a promising medium-term outlook, Ghozzi says. “The recent approval of a new Dubai Building Code is a positive development for the UAE. The new code outlines a revised set of construction rules and standards and seeks to reduce construction costs by streamlining building rules,” she explains, adding that the UAE is proceeding with plans to expand its
The construction sector will face headwinds in 2021 with a slow recovery, but the pace of recovery will be uneven across countries in the region”
production capacity, with Abu Dhabi National Oil Company (ADNOC) announcing a fiveyear investment plan worth $122 billion. This is a move that is set to boost the construction sector further, particularly the oil and gas sector, she highlights. The GlobalData report states that the company has not changed its estimated growth rates for Qatar and Kuwait in 2020, at -4.5 percent and -9.5 percent, respectively. However, it has further cut the growth forecast for Oman to -10.3 percent from an earlier estimate of -8.1 percent, as the construction industry struggles with the challenges presented by the outbreak of COVID-19, low oil prices and the impact of sovereign credit rating downgrades. “The new fiscal plan launched by the Omani Government to wean itself off its dependence on crude revenues through a series of projects and tax reforms is a good step which will aid the construction sector recovery in the medium term,” Ghozzi explains. Clearly, as we move into 2021, there is a sense that the construction industry is beginning to find its feet again. Therefore, in order to get on-the-ground insight into how the sector is shaping up, Big Project ME surveyed some of the leading construction companies in the region, asking them what they felt were some of the biggest challenges are in the year ahead, and how prepared the industry is for what lies ahead.
Increased competition Players in the construction market have experienced increased competition in 2020 and should expect the same in 2021.
February 2021 | MEConstructionNews.com
2021 OUTLOOK
YU TAO
PRESIDENT AND CEO CHINA STATE CONSTRUCTION ENGINEERING CORPORATION MIDDLE EAST
“In 2020, the outbreak of COVID-19 had a huge impact on UAE economy and especially the real estate and construction industries. The construction industry in the region has been undergoing multiple difficulties, such as the decrease of contract awards, the slowdown of industry growth and insufficient liquidity in the system. These challenges have made companies realise the importance of cash flow management. This year, in 2021, although we are seeing some developments and projects which are active and in tendering stage, contractors are all eagerly aiming to win projects in 2021 to survive and maintain operational stableness. Hence, the competition intensity of 2021 could be as high as that of 2020, with both local and international contenders optimising their bids. Players in the market are looking forward to, and having expectations for the year 2021, and what follows is the effort they put in, searching for any opportunity in the industry. The competitive environment will stimulate the recovery of the project market, but it will also exert a lot of pressure on contractors, subcontractors, and suppliers. Given the fact that the price of construction materials and the shipping cost have soared from December last year, the cost and cashflow management will be crucial for all the contractors this year. At CSCEC ME, we will definitely be focusing on the quality and efficiency of the project delivery since we have more than 40 on-going projects in the Middle East region. Under the directives of
the local government, we will also be closely following up government-led opportunities, and other large-scale strategic projects. The market has experienced a sharp downturn due to the pandemic, low oil prices and the other adverse factors. However, we believe that because the world is together against the pandemic, our lives will get back to normal, with the bounce back of the economy and the construction market. We are currently remaining positive about the industry’s long-term recovery prospects and are trying to expand our regional operations in the Middle East. In recent years, driven by the National Transformation Program and the country’s Vision 2030, Saudi Arabia’s business environment has greatly improved, and more opportunities has emerged in that market. The KSA market has evolved in an attractive and open way for both local international businesses. There are several launched and planned megaprojects that require contractors to be professional, efficient and at a high-standard. Developments such as NOEM, Diriyah Gate Development, Qiddiya, The Red Sea Development and others are all shaping the future of the country.
CRIS DEDIGAMA
CEO, MIDDLE EAST & AFRICA ATKINS, A MEMBER OF THE SNC-LAVALIN GROUP
“2020 has been a challenging year for countries and businesses around the world due to the COVID-19 global pandemic. However, at Atkins, a member of the SNC-Lavalin Group, we took this challenge as an opportunity to restructure our service delivery model and become more country-focused to meet our clients’ evolving needs. This flexible
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Harnessing digital technologies and data is a major trend that will continue to drive industry transformation in 2021” and dynamic structure is already generating positive outcomes that will drive more opportunities for business growth in 2021. The UAE and KSA are two key markets where we will continue to cement and grow our presence in the business advisory, engineering and design, and program management services in cities and development, energy, transport, and infrastructure. Leading industry change by playing an active role as a market integrator that leverages collaborative contracting models to enhance project delivery will be a key focus area for our business moving forward. Our digital expertise combined with technical skills and engineering capabilities is another key differentiator that will help us bring more value to our clients and deliver their projects more efficiently. As the COVID-19 global pandemic continues to impact our communities and businesses, the engineering and construction industries need to be more flexible and agile in order to adapt to changing market dynamics. As such, we are transforming the way we work to deliver projects more efficiently and maintain the health and safety of our employees while we stay connected as a Group with our global and regional expertise. Harnessing digital technologies and data to enable efficient project delivery and better decision making is a major trend that will continue to drive industry transformation in 2021. As an organisation, we’re investing in our digital capabilities and talents and working across the globe to integrate digitalisation in our design and program management services through the use of data ecosystem, digital twins, and other cutting-edge solutions. With mega-projects currently being developed in KSA, supporting nationalisation programmes, and nurturing local capabilities will be key to building a strong collaboration between the public and private sectors and push Saudi’s economic diversification agenda. Therefore, we have launched a dedicated academy in our Riyadh office that provides Saudi talents with theoretical and practical expertise to build their skills.” MEConstructionNews.com | February 2021
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2021 OUTLOOK
DAVID CLIFTON
VICE-PRESIDENT – BUSINESS DEVELOPMENT, UAE AND NORTHERN GULF HILL INTERNATIONAL
“Given the vaccine roll out, but still with current global lockdowns and the economic turmoil that creates (again), the story for the global economy is more aligned to second half recovery (bounce back). Regionally, the effects of the virus have been managed quite tightly and a much more ‘normal’ business environment is starting to emerge, suggesting these economies are likely in a recovery phase when compared to Western Europe, for example. The industry, as with much of the economy, faces some significant challenges and headwinds in the short term as we await the bounce back to kick in and a level of normality to return to markets. The industry was experiencing a slowing in the region, except for KSA, prior to the start of the pandemic, with challenges in funding and a dial back in certain government
The obvious discussions are maybe around reigniting the Qatar links to the GCC rail network and of course two-way cross border investment between the other GCC nations and Qatar” February 2021 | MEConstructionNews.com
level infrastructure spending due to declining oil prices and thus revenue suppression. It is expected governments across the region will utilise a reasonable percentage of their announced stimulus packages to develop countrywide infrastructure developments as one lever to stimulate their economies (a globally common policy in recessions, although some question this in the modern age). Furthermore, on top of stimulus, reduced, although not insignificant, spending has been announced in regional government budgets. But 2021 will still be difficult in terms of work getting onto the ground and work that does having significant margin pressure before award. In an industry historically relatively inflexible to how it delivers work, 2020 has been somewhat of a wakeup call. For all the talk of technology, little has really progressed at the same rate as other industry benchmarks, which in turn has kept productivity low. At least a partial embrace of technology had to be found in 2020 to even operate as a business or an industry. I’ve spoken to many architects and engineers about remote working and coordination and that by and large worked successfully. The need for in-person coordination is still there, but people are learning to do more remotely, more efficiently. This does of course pose a risk for developed or high-cost economies as it means that non-client facing roles or those not required to be on site show even greater chance of being off shored to cheaper locations. This has been happening for many years now, but the fact that most of the world had to get used to remote working and coordination suggests it will continue with renewed vigour. Which in turn means that the Gulf may see a diminishing demand for personnel due to the relatively high cost base for staff. The continued ‘right sizing’ of the business moving forward and general uncertainty around where the bottom of the market is and thus any recovery. The loss of a level of predictability has made the industry issues around workload planning ever more challenging (like many other industries). With stimulus packages not being felt as yet in the sector, there is concern that by the time schemes arrive to market, it might be a little late for some businesses. Other challenges are now to utilise more technology to build on the experience of 2020. The industry needs to continue to speed up the evolution in the region, which historically has talked promisingly about implementation but only partially adopted
new tools and techniques. How to educate and inform team members within the project when rolling out newer technology though will need to be progressive: too much too quickly will largely fail. But massive advances in mindset are now there within the workforce to capitalise on the opportunity to grow efficiency both as individuals and through enhancing technological deployment. I think in the short term, there is a level of ‘wait and see’ as the situation normalises. Moving on from there, the obvious discussions are maybe around reigniting the Qatar links to the GCC rail network and of course two-way cross border investment between the other GCC nations and Qatar. In practice, this can only be positive in the medium term, although questions will remain around oil prices and government revenues, with the associated ability and / or willingness to invest at home. In the short term, there is also the USA stance towards the region which has yet to be established and will no doubt be a year or more away from being obvious. As opposed to 2016 when the first overseas trip was to Saudi Arabia.”
ASIF SHAFI
SENIOR VICE PRESIDENT, STRATEGY AND GROWTH, MIDDLE EAST & AFRICA AECOM
“As the world eagerly looks forward to a post-pandemic scenario, there is reason to be optimistic about growth opportunities in 2021. The ongoing vaccination drive in the UAE demonstrates the resolve of the leadership to address the challenge posed by the pandemic. We have seen decisive actions by governments across the GCC region
2021 OUTLOOK
We have seen decisive actions by governments across the GCC region throughout 2020 and we expect to see the positive impacts of those actions in 2021” throughout 2020 and we expect to see the positive impacts of those actions in 2021. The industry adapted extremely well to the constraints imposed by the pandemic and used technology quite effectively to ensure that productivity levels were maintained and even improved. We have all been forced to Fast Forward to the Future and this has transformed how people work, perhaps forever. The construction industry has been dealing with a reduction in the number of new contracts and this has led to intensified competition in recent months. This is likely to change for the better in 2021 given several positive developments in the region. The UAE looks forward to hosting Expo 2020 in October this year which will coincide with the 50th anniversary celebrations for the country. The resumption of diplomatic and economic ties between
Qatar and the rest of the GCC countries will lead to further opportunities. The announcement that Doha will host the 2030 Asian Games and Riyadh the 2034 Asian Games should lead to more investment within the region in the coming decade. AECOM is well placed to participate in the continued development of the region by leveraging our global digital transformation initiatives to improve the delivery of projects within the region. For example, we have launched a Virtual Public Consultation digital tool that allows clients to engage and consult stakeholders from their computer or mobile devices. We have also rolled out Mobilitics for Pandemic Response, an updated version of our ground-breaking transportation scenario planning tool that helps transport agencies across the US assess the impact of the pandemic on travel patterns. The implementation of KSA’s Vision 2030 programs, particularly the development of gigacities will provide significant opportunities for the construction industry. While air travel volumes will take a while to return to pre-pandemic levels, investment in the tourism industry is likely to continue across the region. We aim to continue partnering with our clients to deliver environmentally conscious projects that are based on the principles of carbon neutrality and create world class communities that celebrate the human spirit.”
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KEZ TAYLOR CEO ALEC
“While the pandemic has clearly caused many industries around the world to change tack, the prevailing construction trends are ultimately ones that were long overdue prior to the challenges of 2020. Today, we stand in a unique position to transform our industry into a healthy ecosystem, where all stakeholders are able to succeed by utilising the latest technology and a collaborative approach. At ALEC, the use of the latest design software has meant that potential issues are flagged in the early stages of a project, resulting in a significant saving of time, cost and resources in later stages.
Change for the better With the UAE hosting Expo 2020 in October, the construction industry can expect a change for the better in coming months.
MEConstructionNews.com | February 2021
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2021 OUTLOOK
The utilisation of green technologies will be a crucial factor towards ensuring the sustainable development and progress of the construction industry” From a high-level approach, ALEC believes that consolidating ideas and resources is a far more effective approach to R&D, not only helping to spread initial investment risk, but to ensure the input of as many industry specialists as possible. In partnering with likeminded organizations, leading consultancies, tech companies, start-ups, universities and supply chains, great leaps can be made that help to change entire processes on site. A great example of this being the collaboration between ALEC and Hilti, which yielded the region’s first autonomous drilling robot. Since its implementation, site teams have reported significant improvements in productivity thanks to the robot’s ability to follow digital plans, while alleviating site teams from the strenuous work of overhead drilling, allowing them to upskill and operate the robot itself. In addition to collaborating on innovative new ideas and products, a fundamental increase in communication between stakeholders will greatly improve project processes and delivery. In overhauling the existing model of fragmentation from planning to delivery, ALEC is in the process of creating a new platform that involves all key stakeholders from the very beginning of a project. Not only does this allow for any potential issues to be flagged at the earliest opportunity, but it also promotes a collective approach towards project delivery as opposed to each party working as sole agents. The utilisation of green technologies will be a crucial factor towards ensuring the sustainable development and progress of the construction industry. Manufacturers, building contractors and property developers must make environmentally conscious decisions at each level of the supply chain to meet demand, while promoting a greater interest in clean energies and resources. Under this category, ALEC has identified the February 2021 | MEConstructionNews.com
use of renewable energy, environmentally sustainable materials, and the sustainable management of waste as top priorities. While there is much to be done in terms of improving overall standards, the UAE is extremely well positioned in terms of its ability to effectively collaborate, while using its resources responsibly in order to improve the overall state of the industry. With so many extraordinary projects still in the pipeline, there is no reason why the UAE cannot implement these changes to become a role model for industrial efficiency while ensuring that its existing reputation for technological integration is just as equally associated with its built environment.
RIAD BSAIBES
PRESIDENT AND CEO AMANA INVESTMENTS
“Amongst the major trends and themes for the industry in 2021 will be cash preservation and liquidity issues across the client and supply base. There are question marks about the appetite for banks to fund construction projects, while given the state of the overall market, there are also justifiable concerns about counter-party liquidity and creditworthiness. This will be the major challenge facing the industry in the coming year – many general contractors, subcontractors and suppliers are facing liquidity issues, as well as overdue payments from clients. In the UAE, the industry will also have to deal with the repercussions stemming from the exit of large players in the market over the last two years, and the impact this will have on current projects, supply chains and banks. As a result, companies may need
to limit their revenue accordingly so as to minimise any future issues in collection. We believe that off-site construction – AKA industrialised construction – will also receive a boost this year as companies will look become agile and flexible, while reducing costs and wastage. In the post-COVID work environment, especially on site, the questions companies will ask will be how to maintain safety measures – modular construction offers that security. That is why we are launching DUPOD – our latest modular offering in the region and putting together a platform to create a seamless off-site construction offering for the region, which today include DUBOX and DUPOD. As industrialised construction grows as a sector, there is also a growing need for talent coming in with a manufacturing skillset. We see the potential to hire local KSA talent with a manufacturing background, which is something we have a head start on. Digitisation is another major theme for the industry in 2021, and that’s why we at Amana are going through an ERP system which will digitally enable our teams and allow remote working. We’re also in the early stages of engaging and incubating construction technology start-ups, while we’re keen to expand into research and academia to further strengthen these platforms. Our focus for the year ahead, particularly in the Design and Build sector, includes data centres, e-commerce fulfilment centres, agritech, and cold storage facilities – food security and digitisation of our lifestyles, essentially. These are great opportunities in the post-COVID-19 world. Finally, we hope that the prior discord between the UAE, Saudi Arabia and Qatar will soon be water under the bridge, as this would allow UAE contractors and suppliers to better serve the market in Qatar.
We believe that off-site construction – AKA industrialised construction – will also receive a boost this year as companies will look become agile and flexible, while reducing costs and wastage”
2021 OUTLOOK
SAMEH FAM
MANAGING DIRECTOR ASGC
“The general view is that we will not see as many new residential developments in Dubai in the coming years. In my opinion, this will probably be fine for the real estate industry in the long term. The construction industry will be forced to
diversify during this period, and this is something that we are already focused on through our infrastructure and oil and gas business streams and our presence in other jurisdictions. More generally, my view is that Q3 and Q4 of 2021 will be a positive time for Dubai, assuming that the pandemic is brought under control and global economies can begin to recover. Dubai should be a huge beneficiary of this as a hub focused on innovation and with Expo 2020 drawing visitors who will be eager to travel again and return to normality. In addition, several new projects were delayed due to the epidemic in 2020, and we expect a slow recovery in the construction sector in H1 2021, with more focus on medium sized projects. However, we anticipate in H2 of 2021 – and following the EXPO – that there will be a surge in the number of new projects. COVID-19 accelerated the impact of the issues in construction industry that we had to find solutions for by adopting more efficient ways of thinking, different ways of procuring or the sourcing of more environmentally friendly materials. The underlying issues challenging the industry
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have not changed – but the pandemic has simply expedited the need to find solutions to pre-existing challenge. Clearly, 2021 is likely to be another difficult year for the construction industry. In 2020, many businesses were able to rely on strong 2018/2019 financials to support continuity but that will not be the case for many in 2021. Cost cutting measures brought in during the pandemic may not be feasible for such a sustained period and it is likely that we will see more companies go under in the coming months.”
COVID-19 accelerated the impact of the issues in construction industry that we had to find solutions for by adopting more efficient ways of thinking”
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MEConstructionNews.com | February 2021
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| MEConstructionNews.com | MEConstructionNews.com July-August February 2021 2020
PROJECT PROFILE
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Al Khobar 1 SWRO desalination plant CLIENT: Saudi Saline Water Conversion Corporation CONTRACTOR: ACCIONA TYPE OF CONTRACT: EPC (design and construction) COMPLETED IN: 2020 LOCATION: Dhahran, Saudi Arabia POPULATION SERVED: 350,000 inhabitants
Water Saver
ANGITHA PRADEEP SPEAKS WITH IGNACIO LOBO, PROJECT DIRECTOR AT ACCIONA, ABOUT ONE OF SAUDI ARABIA’S BIGGEST REVERSE OSMOSIS DESALINATION PLANT – AL KHOBAR 1 SWRO DESALINATION PLANT – AND HOW IT WAS DELIVERED ON TIME, DESPITE THE UNPRECEDENTED CHALLENGES OF 2020 | July-August | February 2020 MEConstructionNews.com MEConstructionNews.com 2021
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PROJECT PROFILE
audi Arabia has a population of 33.4 million people and is the world’s third-largest per capita consumer of water, behind the United States and Canada. As part of its Vision 2030 program, the Kingdom has introduced measures to rationalise water consumption, intending to achieve 24% reduction in consumption by 2021, and 43% by the end of this decade. The average availability of water worldwide is 7453 cubic metres per capita per year, while in the Middle East this figure falls to 736 cubic metres, according to an AQUASTAT report. ACCIONA’s latest Sustainability Report notes that the demand for desalinated water is being driven by climate change and population growth in the Middle East. Additionally, desalinated water production in the region will be 13 times higher in 2040 than it was in
The start-up of desalination plants in the future will be undertaken by local and remote teams working together, thanks to technologies such as digital twins. It is very likely that plants coming on stream next year will be commissioned this way” Sustainable solution Ignacio Lobo, project director, says that desalination is one of the most sustainable solutions available to produce clean and ready-to-drink water.
98%
of Earth’s water is saltwater
February 2021 | MEConstructionNews.com
2014. One of the most effective ways of dealing with this problem is to focus on the fact that 98% of Earth’s water is saltwater and to take advantage of this by turning it into clean and ready-to-drink water, experts say. “Desalination, especially desalination by reverse osmosis (RO) makes this possible and is one of the most sustainable solutions that are available in the market,” says Ignacio Lobo, project director at ACCIONA, the Spanish firm which will supply Saudi Arabia with 1.8 million cubic metres of desalinated water per day with the completion of its latest project in the Kingdom.
“The RO desalination of 1,000 litres of water uses the same amount of energy as running an air conditioning system in a house for one hour or buying a five-litre bottle of water from a supermarket,” says Lobo, adding that it also produces 6.5 times fewer CO₂ emissions than conventional desalination technology. In line with this, ACCIONA recently announced the completion of its Al Khobar 1 (AK1) seawater desalination reverse osmosis (SWRO) plant which is producing 210,000 cubic metres of drinking water per day – well beyond its nominal capacity – since 26 December 2020. The Spanish firm tells Big Project ME that the highly energyefficient plant is a key water sector modernisation project carried out by the Saudi Saline Water Conversion Corporation (SWCC). With the AK1 plant set to be one of the largest desalination plants in Saudi Arabia, Big Project ME spoke with Lobo, to understand how the project was delivered on time, despite the unprecedented challenges encountered along the way. “SWCC awarded the project to ACCIONA in May 2018; our scope of work being the design and construction of the plant on the coast of Dharan, located about 400 km from Riyadh, Saudi Arabia. The EPC contract for the plant was valued at more than
PROJECT PROFILE
$243 million, and the plant will be operated by ACCIONA during the first year of production. Furthermore, the company will also train SWCC’s operations and maintenance team, who will undertake full responsibilities after the one-year period. “The desalination plant will provide 100 million litres of potable water per day to Saudi Aramco, whereas the remaining will be used by the community of Dammam, Dhahran and Al Khobar, equivalent to a population of 350,000.” The project will also open many opportunities for the local community in terms of jobs and businesses, says Lobo, referencing their exposure to training with advanced technologies.
$243
million is the total value of the EPC contract
Open opportunities The project is expected to open many opportunities for the local community in terms of jobs and businesses.
Elaborating on the project’s execution phase, Lobo says that most of 2018 involved activities such as mobilising project teams, erecting site facilities, developing process engineering and detailed civil engineering, and improving the ground to bear the load of the building, among others. He stresses that these preliminary activities were executed within the least possible time-period, adding that the concrete pouring started in January 2019. “Between January and October 2019, 63,000 cubic metres of concrete was poured out of the 71,000-total figure, while the project also focused on civil works. Meanwhile, marine works were executed in parallel by an independent
33
team responsible for welding and launching three high-density polyethene (HDPE) intake pipes to the sea. The intake pipes measured ØD 2000 mm and 2.1 km long while the outfall line was ØD 1800 mm and 800 m long. The team was also involved with preassembling and laying three risers on the seabed for the water intake.” Lobo mentions that ACCIONA’s procurement and logistics team, located in Spain and Dubai coordinated the fabrication and shipment of equipment, simultaneously in 2019. He adds that piping, mechanical, and electrical installations started in December 2019 – overlapping with the last civil works – extending until the summer of 2020. “Of course, there was some
MEConstructionNews.com | February 2021
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PROJECT PROFILE
Once this [Shuqaiq 1] project is completed, around 1.8 million cubic metres of desalinated water will be supplied by ACCIONA in Saudi per day through reverse osmosis, consolidating this as the most sustainable technology”
overlapping between MEP installations and commissioning,” remarks Lobo, meanwhile commenting that during Ramadan and the summer of 2019, most construction activities were shifted to the night. He confirms that the day shift had 300 members, while the night shift had 800 members, to mitigate the impact of fasting and the terrible summer heat. “Then, the year 2020 burst into the scene, and COVID-19 imposed its own unpredictable rules!” he states, adding that the project did not stop during the pandemic except during April and May when the Saudi governmentimposed curfews which limited the attendance of workers to the site. He observes that they mitigated damages by following general rules such as
February 2021 | MEConstructionNews.com
2020
The COVID-19 crisis imposed its own challenges Limited availability One of the major challenges was the fabrication and delivery of 2,800 glass-reinforced pipe spools of different diameters and lengths.
limiting the number of attendants to progress meetings and resorting to video-conferencing to communicate with teams located outside the Kingdom. “Perhaps,” Lobo says, “The major impact of COVID-19 during the project was the non-availability of process equipment vendors’ foreign experts during critical stages of construction and commissioning, due to travel restrictions. However, we alleviated those issues by coordinating with local supervisors and their agents of those companies.” He further adds that another challenge that had to be addressed due to COVID-19 was the fabrication and delivery of glass-reinforced pipe spools (2,800 spools of different diameters and
PROJECT PROFILE
lengths) due to its limited availability from local vendors. He says that this was due to several projects which were under construction in the country and contesting for the same resources. On a positive note, Lobo announces that the coordination between the client – who had a strong presence at the site –, the consultant, and ACCIONA’s team was excellent, and a critical factor in the success of the project. “The process of the commissioning the plant started a few months ago; the main switchgear was energised on 11 August 2020 and the first cubic meter of water was produced on 12 September 2020,” notes Lobo, adding that the plant consists of 21 various-sized process buildings. This is the first time that ACCIONA’s team in Madrid had tested and commissioned a desalination plan using digital twin technology, which was created by Siemens in collaboration with ACCIONA. This allowed the plant to be commissioned on schedule despite travel restrictions, and access to functions, he adds. “The system was developed at CECOA (ACCIONA’s water control centre) and adopted the same cybersecurity standards and communication channels used at other connected plants. The digital twin used advanced machine learning and artificial intelligence to stimulate
the field equipment and the process of the entire plant, in real-time.” “This enabled us to test the operational data in the process control system before its implementation, and made the process validation simpler, which meant that we could try various system operation and optimisation options,” he says. “The start-up of desalination plants in the future will be undertaken by local and remote teams working together, thanks to technologies such as digital twins. Due to the pandemic, it is very likely that desalination plants coming on stream next year will be commissioned this way,” adds the project director.
Starting operations The first cubic meter of water produced by the plant was on September 12, 2020.
21
The plant consists of 21 process buildings
35
He notes that the design of AK1 leverages on ACCIONA’s long experience with RO desalination plants, and that its efficiency has improved over the years. He adds that the power consumption at the AK1 plant is below 4kWh per cubic metres- a figure that was difficult to imagine a few years ago. SWCC has awarded ACCIONA and its Saudi-based partner RTCC, the design and construction of their fifth desalination plant, Shuqaiq SWRO 1, in the country. The plant, evidently, equipped with RO technology will have a daily capacity of 400,000 cubic metres, and is expected to offset water shortages in south-west Saudi Arabia by providing a new source of potable water. Lobo summarises, “Once this [Shuqaiq 1] project is completed, around 1.8 million cubic metres of desalinated water will be supplied by ACCIONA in Saudi Arabia per day through reverse osmosis, consolidating this as the most efficient and sustainable technology with the smallest carbon footprint.” “As part of ACCIONA’s commitment to innovation, our Water Technology Centre located in Barcelona, Spain, has different pilot plants as well as two laboratories with the most sophisticated equipment for modern analysis and characterisation techniques. Here is where we create the necessary solutions to face the challenges of water shortages and sanitation problems around the globe,” he concludes.
MEConstructionNews.com | February 2021
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BPME AWARDS 2020
February 2021 | MEConstructionNews.com
BPME AWARDS 2020
39
A night under the stars MIDDLE EAST
Big Project Awards 2020 celebrates the success and resilience of the construction sector following a challenging year
T
he latest edition of the Big Project ME Awards was held on January 26, 2021 at the Ritz Carlton JBR in Dubai, with 25 winners from the contracting, subcontracting, supplier and developer segments of the industry. On the night of the awards, attendees were welcomed to a very different ceremony than normal. Due to the COVID-19 pandemic, organisers
ensured that the event was held in a responsible, safe, and sanitised manner. All attendees were seated in a sociallydistanced manner, while award winners received fully sanitised trophies from a masked and gloved presenter. Amongst the big winners on the night were ALEC, The Red Sea Development Company, Voltas Limited, ASGC, China State Construction Engineering Corporation Middle East, DUBOX by Amana, and ACCIONA, amongst others from across the construction industry. More than 140 nominations were submitted across 25 categories by companies with operations across the GCC, with the first round of eliminations seeing the judging panel presented with around 100 nominations for consideration. The winners and short-listed nominees were decided at a closeddoor, socially-distanced meeting between the judging panel, which
Regional challengers The Big Project ME Awards 2020 saw nominations for several high-profile projects from across the region.
25 winners
were revealed on the night of the awards
consisted of leading experts from the region’s construction industry. This year’s panel of judges consisted of: Allison Wicks – Managing Partner, Qualitaz; Alex Albani – Professor of Architecture, American University of Dubai; Gavin Davids – Editor, Big Project ME; Jason Saundalkar – Editor, ME Consultant; Marcus Taylor – CEO, FifthEdge; Nithin Thomas – Chief Technology Officer, BIM ++; Peter Westeng – Managing Director, Omnium International; and Sam Alcock – Director – Dubai, Tenable Fire Engineering Consultancy The partners for the Big Project ME Awards 2020 were: Gold Sponsors – ALEC and ASGC; Platinum Energy Partners: KiloWatt Labs, Infusion Solar Energy Systems, and Perco; Silver Sponsors – Driver Trett, Tenable Fire Engineering Consultancy, and Voltas Limited; Bronze Sponsors – 12D Model, Global Construction Solutions, and TENDERD.
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MEConstructionNews.com | February 2021
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BPME AWARDS 2020
Professional of the Year NOMINEES: X Cheng Qianli – China State Construction Engineering Corporation ME X Pierre Roman – Total Solar Distributed Generation Middle East WINNER: X Rade Miljanovic – ALEC Rade Miljanovic was chosen by the judges due to his strong project portfolio and open-minded attitude towards collaboration.
Having worked on a number of high-profile projects over the last eight years, Miljanovic’s submission demonstrated his management capabilites and extensive technical expertise, judges added. “I feel great about winning, definitely. It’s a great recognition. Actually, it’s more of a commitment than a prize - we strive towards a peak in this industry, and ALEC represents everything that is ahead of its time, in a professional sense, and we plan to maintain that course,” he tells Big Project ME.
Under-30 Champion of the Year NOMINEE: X Drew Gilbert – OBMI Architecture WINNER: X Don Sibe – KIER Group Despite having only recently completed his own professional qualifications, Don Sibe impressed the judges with his willingness and commitment towards giving back to the industry by working with students at universities across the UAE, helping them
bridge the gap between academics and the professional workplace, while at the same time, forging his own impressive career path, having working several challenging projects in a burgeoning career. “This is the first time Big Project ME has had this category, and I’m honoured to be the first to win it,” Sibe says. “I’ve had great support from my colleagues, especially my boss - he has been very supportive of me from the start, and he’s here tonight, which I’m really happy about!”
Executive of the Year NOMINEE: X Jesus Sancho – ACCIONA WINNER: X Sean McQue – ALEC Sean McQue’s leadership at the height of the COVID-19 pandemic is what made his nomination stand out for the judges, as they recognised that his levelheadedness, open-minded, and collaborative approach was essential in ensuring that ALEC’s reponse to the crisis was a successful one. February 2021 | MEConstructionNews.com
“In these difficult times, you can’t be standing still in this industry. Things are only getting more and more difficult - we know we’re already in a trying market, and the pandemic has just made things a lot worse. There is no silver bullet to make things right, but it’s about continuing to look for opportunities to innovate and do things a bit differently. Find efficiencies, eliminate waste, and just focus on doing the fundamentals right. That’s all it is, and soon we can look forward to a bright future,” he says.
BPME AWARDS 2020
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Skills Development Programme of the Year NOMINEE: X ALEC for their Performance Leadership Academy WINNER: X Serco Middle East for the Serco Middle East Graduate Programme Launched in 2020, the Serco Middle East Graduate Programme is dedicated towards nurturing regional talent and equipping future leaders - recent graduates
from the UAE and Saudi Arabia with the right skils to be globally competitive and future-ready. “Nationalisation and developing leaders from this region is something that is in the blood of the organisation. It is a part of our strategy - we have a commitment towards the countries we work in, especially with the pandemic, to develop the regional talent,” says Hana Abu Kharmeh, regional Human Resources director at Serco Middle East.
Excellence in Health and Employee Safety NOMINEES: X ASGC for their Target Zero Campaign X Multiplex for the Worker Welfare Management System WINNER: X The Red Sea Development Company for their COVID-19 Health and Safety Plan The Red Sea Development Company impressed judges with its holistic approach to Health and Safety on the
Red Sea Project. Not only did was there a clear and tangible response to the COVID-19 crisis, with clear protocols and procedures in place for employees across all levels, but the developer also demonstrated a high level of attention to details and a stringent adherence to regulations. Furthermore, the company also showcased a wider focus on employee well-being and welfare, providing a supportive and welcoming environment for the thousands of workers on the project.
Innovation in Building Materials NOMINEE: X PermAlert for their Smart Fluid Watch WINNER: X Hadley Group for their Steel Framing System Hadley Group’s Steel Framing System won the judges over thanks to the impressive results recorded on the projects it has been deployed on. The system is not only quicker to install than traditional alternatives, but it is also lighter,
greener, more cost effective, and generates less wastage on site. “The industry is moving towards more modern methods of construction. Change is always difficult and it does take time, but once it’s embraced, it all comes in very quickly. “As a company, the plan is to keep promoting modern methods of construction - faster, lighter, more economical - that have been embraced by other areas of the world,” says Robert Marsh, regional sales manager at Hadley Group.
MEConstructionNews.com | February 2021
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BPME AWARDS 2020
Construction Technology Innovation of the Year NOMINEES: X Ares Prism X TENDERD WINNER: X Hydro CIRCAL Hydro CIRCAL’s submission impressed the judges because of its approach to sustainability, creating the world’s first aluminium alloy that has a minimum of 75% post-consumer recycled content, and a CO2 footprint below 3.2KG
of CO2 per 1KG of aluminium, as compared to a worldwide average of 18KG CO2e/kg. “It feels really special, especially after a tough 2020, to be recognised for sustainable construction practices. We believe that this will help promote more sustainable construction practices to architects, consultants, and this is a big step to take this conversation forwards,” says Arvind Kumar, communications and business development manager, Hydro Building Systems ME.
Excellence in Fire and Life Safety Innovation NOMINEES: X Gulf Duct Industries X Liberty Fire and Safety WINNER: X Joule Group Joule Group’s winning nomination was a new digital solution for fire and life safety regulatory inspections. Running on a cloud-based dashboard and utilising a handheld app to scan QR codes fixed to fire-safety assets, the winning innovation
Excellence in BIM Implementation NOMINEE: X ASGC WINNER: X China State Construction Engineering Corporation Middle East CSCECME not only impressed judges with their BIM capabilities, but also illustrated how it involves all stakeholders to create a platform where the language of output is the same across the board for all involved.
Furthermore, the winner also showed judges how it was applying BIM throughout its organisation, utilising data generated for cost simulations, modelling, and even future facilities management of the buildings under construction. “We are trying to improve the areas where we feel there is some weakness. We try to learn from other projects and companies, about the strengths and advantages they may have, and how to further improve ourselves,” says Loh Pinghun, project manager at CSCECME.
February 2021 | MEConstructionNews.com
allows on-site operatives to quickly and easily report issues, while also simplifying compliance checks. “We will use this win to continue to promote our mission of digitally disrupting the fire safety industry with the way we deliver our consultancy services and rollout our Digital Fire Safety Tool TFS Compliance,” says David Black Middle East operations director at Joule Group. “We managed to have a good year in 2020 despite challenges, so we are buoyant about 2021.”
BPME AWARDS 2020
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Developer of the Year NOMINEES: X Al Barakah International Investments X Azizi Developments WINNER: X The Red Sea Development Company The judges chose The Red Sea Development Company as the Developer of the Year due to their strong commitment towards developing a massive and unique destination that is sustainable, environmentally-friendly, and committed to the best practices in the regional construction industry, if not the world. Given the sheer scale and complexity of the project they are undertaking, the judges felt that they were worthy winners of the title.
“What’s great is that the recognition we received with these awards goes deeper than just being a great development company – the awards touch on key commitments we stand strongly by as a business. “The effects of the pandemic will be far-reaching, particularly in the tourism industry, with travellers looking for authentic, barefoot luxury experiences which connect them to the nature and culture of the destination. Meanwhile the construction industry has been fasttracked into testing and adopting new technologies to ensure time was not lost during the lockdown periods and safety standards were maintained. BIM technology and modern techniques like off-site manufacturing are becoming much more prominent as a result,” says John Pagano, CEO of TRSDC.
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MEConstructionNews.com | February 2021
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BPME AWARDS 2020
Digital Transformation Champion of the Year NOMINEES: X ASGC X Voltas WINNER: X Dubai Municipality The judges praised Dubai Municipality as a pioneer in adopting digital methods and new technologies, making their nomination an obvious choice for Digital Transformation Champion of the Year.
“Winning the award is great, but the real win is the opportunity to reach out to the whole AEC supply chain in Dubai and highlight Dubai BIM Roadmap Project and the huge efforts of main building permit authorities in developing BIM standards and a BIM e-submission platform” says Eng. Maryam Almeheiri, Director of the GIS center. “We hope that winning this award will encourage the whole AEC industry supply chain to embrace BIM and other digital methods.”
Fit-Out Contractor of the Year NOMINEE: X ALEC Fitout WINNER: X ISG ISG was chosen due to their outstanding performance between 2019 and 2020, having delivered 20 major engineering and fit-out projects and working 1.6 million manhours without a single lost-time accident. “This accolade reflects the collective effort, energy and
collaboration that has sustained our business, and reinforced our reputation for delivering agile solutions through innovation and expertise,” says Steve Ramsden, managing director, South-East Asia and Middle East, ISG. “Once conditions begin to normalise, we are optimistic that the demand for high-quality build environment solutions will return.” Amongst the projects delivered by ISG in 2019/2020, the judges highlighted their work on the EXPO 2020 Media Centre.
MEP Contractor of the Year NOMINEE: X ALEMCO WINNER: X Voltas Limited Voltas’ strong risk assessment strategy that allows it to carefully target and select the right jobs for the company’s success won favour with the judges as this approach has resulted in a 38.3% growth in its order book, while allowing it to complete several projects on schedule, despite challenges. February 2021 | MEConstructionNews.com
“ Voltas has been present in the region for more than 40 plus years, so we have to deliver as our customers expect better. We have to do something more than what we have done in the past.” “The industry needs a lot of attention from developers and contractors, clients, because unfortunately, a lot of our competitors are missing from the market today,” says AR Suresh Kumar, VP and head of International Operations Business Group - Voltas Limited.
BPME AWARDS 2020
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Multi-Discipline Contractor of the Year NOMINEES: X ASGC X Multiplex WINNER: X ALEC “This award recognises the whole group and the various different related businesses that we have developed over the years, that compliment our core construction capability. Without a doubt, it ratifies the strategy that we had
- that having the in-house ability to support yourself in your core activities and being able to tap into those centres of expertise and resource has really helped us on a number of our projects. We have delivered some large complex projects over the last year and without a doubt, the contribution we have had from our related businesses have been huge factor in our success,” says Sean McQue, director of Construction at ALEC.
Sustainable Government Department of the Year WINNER: X Ras Al Khaimah Wastewater Agency The Ras Al Khaimah Wastewater Agency’s commitment to sustainability while upgrading 10 pumping stations that serve as the backbone of Ras Al Khaimah’s wastewater collection network was what won the award for them. Not only did the upgrading result in a 20% reduction in energy consumption, but it also led to a
12% fall in operating costs, and a 50% reduction in maintenance activities. Furthermore, the digitalisation of the network has resulted in an overall increase in efficiency and performance, in line with the UAE’s sustainability goals. “I am giving this award to the entire team of the operations and maintenance department at RAKWA, because it’s their efforts that has led to this success,” says Walid Abdelrahman, O&M Department Manager - RAKWA.
Smart Project of the Year WINNER: X Enterprise Command and Control Centre – Roads and Transport Authority Conceived as the transport management cornerstone for EXPO 2020, the Enterprise Command and Control Centre by RTA will enable Dubai to accommodate millions of visitors throughout the year as they use the city’s transport network. Integrating data from the various agency level Operational Control Centres across the city,
the Centre will be able to turn that data into meaningful information, using it to track trends, gauge future indicators, and develop knowledge and insights that will serve the city well as it grows and expands. “This win justifies and acknowledges our performance, and it’s a good industry milestone. It encourages us to develop further and realise our next level of ambitions,” states Prof Amair Saleem, director of the Knowledge and Innovation Department, and the Enterprise Command and Control Centre.
MEConstructionNews.com | February 2021
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BPME AWARDS 2020
BIM Project of the Year NOMINEES: X Ras Tanura Refinery – Global Construction Solutions X The Storm Coaster by Emaar Entertainment – ALEC WINNER: X Address Jumeirah Gate – Multiplex The judges pointed out that this year’s winner of the BIM Project of the Year was the most complex and integrated BIM project
submitted for consideration, terming it a ‘considerable and remarkable achievement’. “I am extremely proud of my team on the Address Jumeirah Gate project. Their commitment to utilising BIM and harnessing its potential has made this big and complex project far more manageable,” says Scott Madigan, project manager at Multiplex. “Successful innovation is built on consistency, simplicity, and precision,” he adds.
HSE Project of the Year
NOMINEE: X Creek Horizon, Dubai Creek Harbour Island District – AF Construction WINNER: X House of Wisdom, Sharjah McLaren The judges hailed this year’s winning HSE Project of the Year as a standout submission due to its flawless injury record despite the many challenges faced, including those brought on by the pandemic.
Sustainability Project of the Year NOMINEES: X Jebel Ali SWRO Plant – ACCIONA X One Za’abeel – Ithra Dubai WINNER: X Coastal Village Residential Buildings, The Red Sea Development – DUBOX by Amana In addition to its sustainability ambitions, the sheer size and scale of this year’s winning nomination for Sustainability Project of the
Year is that caught the judges attention. Using a modular approach, this project only reduced construction waste by up to 90%, but it also kept emissions and energy usage to a minimum due to its factory led approach. “We are very proud of the achievement and have loved working with like-minded clients like TRSDC - innovation and sustainability is what drives them, and we look to improve ourselves everyday,” says Jihad Bsaibes, CEO of Amana Contracting.
February 2021 | MEConstructionNews.com
“We had a fantastic team who were fully focused on health and safety, and we were very well supported by our client Shurooq - and the consultants - Foster + Partners and Aurecon,” says Fergus O’Boyle, senior project manager at McLaren. “At the end of the day, we have delivered a successful and safe project. We are very happy with the results, so we’re very happy to win this award. We now want to build on the relationships that we have built up over the last two or three years.”
BPME AWARDS 2020
47
Energy Project of the Year NOMINEES: X Alpha Sweet Water Project – Grundfos X Camelicious Solar PV Plant Project – Total Solar Distributed Generation Middle East WINNER: X Royal Grammar School Guilford – Multiplex The Royal Grammer School Guilford is the first nearly Net Zero Energy School in the UAE thanks to the installation of
on-site Solar PV panels that have helped achieve an estimated 1,458,815kWh/year of total annual energy generated - the equivalent of powering 175 homes a year. “This project exemplifies the importance of environment, sustainability, and a life-cycled approach taken from day one,” says George Haddad, head of department - MEP at Multiplex. “There is only one way ahead from here, and that is to push our limits and strive to be better,” he asserts.
MEP Project of the Year NOMINEE: X The Residences at Marina Gate I & II and Jumeirah Living Gate – ALEMCO WINNER: X Conference and Exhibition Centre – EXPO 2020 – Voltas Limited Voltas’ work on the Conference and Exhibition Centre for EXPO 2020 impressed the judges due to the skills and best practices they displayed during its delivery process.
“The CoEx job was challenging considering the complexity and short duration,” says Syed Ilyas Ahmed, senior project director at Voltas Limited. “We overcame these challenges by implementing a prefabricated modules concept. As a result, the team was very competitive when it came to delivering the project,” he adds, pointing out that as a result of the execution of the CoEx project, Voltas was awarded the DEWA HQ project, which is a Zero Energy concept, and one of a kind.
Fit-Out Project of the Year NOMINEES: X Waldorf Astoria Hotel – ALEC Fitout X The Address Fountain Views – Depa Interiors WINNER: X Dubai International Airport – ASGC Not only did ASGC have to completely upgrade parts of Dubai International Airport, as per the clients requirements, but it all had to be done while the
airport continued to operate and function as normal. It is because of the sheer scale and complexity of executing such a project that the judges decided to award it the Fit-Out Project of the Year. “Last year was very difficult for all industries, but the good thing is that we did not stop - we slowed down a bit in construction, but hopefully we’ll be able to return back to the same momentum this year. We are working really hard to get projects,” says Abdulaziz Mohamed Binshafer, vice president at ASGC. MEConstructionNews.com | February 2021
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BPME AWARDS 2020
Mixed-Use Project of the Year WINNER: X Deira Enrichment Project – Ithra Dubai The Deira Enrichment Project is a long-term development by Ithra Dubai to rejuvenate and refresh the heart of one of Dubai’s historic and iconic neighbourhoods. As one of the most important areas of Dubai since the city’s founding, the DEP masterplan aims to retain its traditions and cultures, while incorporating them in the revitalisation of the waterfront area.
“Winning this award is confirmation of the hard work we have put in over all these years to do the surgery that we have carried out on the heart of Dubai,” says Raad Jarrah, chief development officer of Ithra Dubai. “Hopefully, when it’s all done, it will be said that it has added value to Dubai.” “Dubai has always challenged the norms and exceeded expectations, and I think the COVID-19 issue is no exception. Dubai is going to supersede everybody and overcome this challenge,” Jarrah insists.
Infrastructure Project of the Year NOMINEES: X Dubai International Airport Improvement Works – ASGC X R1086 DHE Mall Access Infrastructure and Umm Suqeim Street Upgrade – China State Construction Engineering Corporation Middle East WINNER: X Dubai Metro Route 2020 – ACCIONA This year’s winner of the Infrastructure Project of the
Year was chosen unanimously by the judges, who praised its high complexity and quality, highlighting the collaboration involved between numerous stakeholders, as well as the challenging engineering works carried out above and below ground. “This confirms ExpoLink consortium’s work was well done. We are proud to have been a part of it and to work with the RTA to build the best transportation system in the world,” says José Luis Oliván, project director of the Dubai Metro - Route 2020 for ACCIONA
Project of the Year NOMINEES: X Al Qana Waterfront – Al Barakah International Investments X MBR Library – ASGC WINNER: X Mobility Pavilion, EXPO 2020 – ALEC When it came to chosing the project of the year, the judges commended ALEC’s work on the Mobility Pavilion for EXPO 2020 as being an example of February 2021 | MEConstructionNews.com
extraordinary engineering skill, and an example of sustainable building, innovation, ingenuity, and the marriage of technology and design. “Winning this award pays off the hard work the team has done. It’s beautiful to see what the outcome is for the whole team,” says Henk Mol, senior contract manager at ALEC. “The industry is quite challenging, and the construction sector needs to develop a bit more in terms of adopting technology and to look forward, rather than being set in its ways,” he adds.
BPME AWARDS 2020
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WINNER : INNOVATION IN BUILDING MATERIALS At the recent Big Project ME awards, Hadley Industries Middle East were proud to be announced winner in the category “Innovation in building materials�. Hadley were selected amongst fierce competition for their steel framing system. Hadley steel framing is revolutionising how we build in UAE. Increasing speed of build, reducing construction cost and lower complexity, Hadley Steel framing is the progressive designers facade of choice. Providing bespoke framing to some of regions most iconic and challenging buildings, Hadley fuse their engineering knowledge and expertise with local manufacturing to offer developers an end to end, design to delivery solution. All systems are manufactured strictly to international standards and diligently installed by Hadley installer partners. Scan the QR code below to connect to Rob Marsh, GCC Regional Sales Manager or reach out on the details below.
EMAIL ME:
Rob.Marsh@hadleygroup.ae
CALL ME:
00971-04-8833811
VISIT OUR WEBSITE:
https://www.hadleygroup.ae/
MEConstructionNews.com | February 2021
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COMMENT
Industry insight
SUHAIL ARFATH HLOOV
Empowering construction’s digital transformation
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t the end of 2020, Dubai’s Ruler, HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE, approved the Government of Dubai’s general budget for the 2021 fiscal year, with total expenditures of $15.5 billion – of which 41 percent will be allocated to the infrastructure and transportation sectors. While this announcement presents an opportunity for the local construction sector to take advantage of this planned spending – especially with the rescheduled EXPO 2020 on the horizon – companies will need to approach it in an intelligent manner if they want to make the most of what’s on offer. The pandemic has also fuelled a burgeoning cultural revolution within the industry. Construction firms around the world are waking up to the power and potential of technology, harnessing it to help firms continue operations while working remotely. However, construction technology is so much more than a mere tool for remote working. According to a McKinsey & Company report – Imagining Construction’s Digital Future – the construction industry is ripe for disruption, with large projects across asset classes typically taking 20 percent longer to finish than scheduled, as well as being up to 80 percent over budget. Therefore, it is no surprise that a good percentage of large and medium engineering and construction firms have been investing in exploring, choosing, and implementing the right solutions to enable their technological transition. February 2021 | MEConstructionNews.com
With approximately $1 trillion worth of projects planned or under construction through long-term, transformational masterplans and megaprojects in the UAE and Saudi Arabia alone, there is an urgent need for businesses to revisit and reimagine their business models, service offerings, processes, and client engagements with a digital-first approach that will help reduce costs and reach new profitability levels. A Digital First approach will require more than targeted interventions and choosing technology. At best, merely investing in technology will address only a small part of the overall value at stake for the project ecosystem. At worst, poor choices and/or implementation of technology can end up adding additional cost, unnecessary confusion, and complexity to the ecosystem and project costs. However, due to the complex nature of these projects, the industry will need to undergo a paradigm shift in many areas, so as to break from the past with all its inconsistencies and delays. If a digital-first approach is to work, the first thing that needs to be done is democratise data across the supply chain. Nearly 96 percent of all data captured in the engineering and construction industry is let unused and this is an unacceptable loss of invaluable resources and insights. Project owners will need to start taking control of their project data and take the lead in democratising data in order to empower and enable their teams to deliver value, and not just contractual deliverables. Instead, a seamless data flow and sharing culture needs to become the new norm. This is where technology-agnostic solution providers, such as Hloov, can be useful. With a background in E&C domain processes and a strong expertise in technology implementation, these solution providers can play a crucial role in helping businesses. By empowering forward-thinking Owners, Operators and Developers with this knowledge, these providers can help reduce waste with a digital-first approach; deliver carbon-neutral infrastructure on time and within budget; and reimagine the built environment in such a way that projects are conceived, designed, built, and managed by leveraging virtual representations of real-world entities and processes, synchronised at specific frequencies and fidelities. Suhail Arfath is director of Digital Transformation and Innovation at Hloov.
PRAKASH SENGHANI SAIFETY.AI
Why the construction sector needs to embrace gender diversity
A
ccording to a Forbes study, diverse companies produce 19% more earnings than their counterparts, with diverse workforces not only generating greater revenue, but also contributing a wider range of benefits, including increased productivity and heightened company reputation. However, when it comes to the construction industry, there is a major gap in gender equality, with recent studies showing that only 9.9% of women comprise the construction workforce in the US, while in the UK, that figure is 12.8%. In countries like Canada and Australia, their construction industries report similar figures, with the latter finding that only 12% of an estimated one million strong workforce are women. In professional positions, this rises to 14%, but falls dramatically in the trades to less than two percent. These figures represent a challenge to the industry, given that globally, it is facing a shortage of skilled labour. Therefore, it is imperative that the construction sector wake up to the fact that the labour shortage challenge is not going to be solved unless it becomes more inclusive and diversified. A similar pattern can be also be seen in the technology industry, where women software hires have increased by only two percent over the last 20 years. In fact, women
COMMENT
currently remain highly underrepresented in software engineering, making up just 14% of the overall workforce, and computer science-related jobs, where they account for just 25% of the workforce. However, paradoxically, while these two industries may not offer many opportunities to women on their own, when brought together, they create opportunities that previously may not have existed. As we all know, the construction sector is moving towards a digital future, hastened by the ongoing COVID-19 pandemic. What is startling about the industry’s digital transformation is how rapidly it is happening, and how urgently companies require the right skills and knowledge if they are to successfully manage their transition. What this does is open a window of opportunity to women as it removes many of the traditional barriers to entry to such a ‘male dominated industry’, research by the University of Central Lancashire has found. The historical requirement for physical strength, for example, to work in construction is now being countered by the digitalisation of the industry, where automation and robotics are increasingly performing these tasks, a paper published by the university says. In turn, this could also dilute the existing preconceptions of construction workers – at least on site and in professional disciplines – needing to be men, with all the associated biases that come with that. Furthermore, the emerging construction digital workspace provides greater flexibility and adaptability for women in the built environment professions, as it offers both men and women a chance to operate in a new, location-independent, flexible environment. However, for companies to fully embrace the opportunities that a digitally enabled construction sector provides, this transformation needs to be met by a cultural shift as well. The sector’s traditional mindset of long hours and being seen at work needs to change so as to allow all genders an opportunity to manage potential home-life commitments, define new career roles and reward structures, so that construction can maximise the potential of the talent pool at their disposal. Prakash Senghani is co-founder at Saifety.ai
LUCIA VERNON QUANTUM GLOBAL SOLUTIONS
Resolve disputes for the sake of the project
C
onstruction projects in the Middle East invariably have tight deadlines but often run late, so contractors make claims for extension of time to avoid penalties for late completion. Well-known industry guidelines for delay experts producing delay analyses for such claims are the Association for the Advancement of Cost Engineering (AACE) International’s Recommended Practice No. 29R-03 and the Society of Construction Law (SCL) Delay and Disruption Protocol. These guidelines suggest the correct delay analysis methodology for analysing projects, such as Impacted As-Planned, Time Impact, As-Planned versus As-built, observational Windows or Summary As-planned versus As-built analyses. Each expert has their own opinion on how these analyses should be applied or prepared using planning software or simply by an overview in Excel. Contractors support their extension claims to the employer with one type of delay analysis whilst the employer’s experts respond using a different methodology for their evaluation Delay claim preparation can be a long process, with the quality of analysis dependent upon the documentation available and the time allowed. For example, the analysis for an average project such as a tower block can take one month but the follow-up meetings and discussions can take months or even years. During this time, the contractor is frustrated and unsure of the outcome. They are threatened with penalties and are
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concerned about being able to pay staff but would still like to work for the employer. On the other hand, the employer needs the job finished, is unsure of the cost and if the contractor can finish it. In the region, resources are limited and the employer needs somebody to carry out the work - they do not want the embarrassment of an unfinished project and no contractor to build the next project. Different opinions and delay analyses for the same project result in different entitlement conclusions. This seemingly unsolvable dispute between parties could be resolved quicker than it looks at first. The situation is sensitive with both sides preferring their problems be private. Allegations of concurrency impact on prolongation cost entitlement are often the main point of contention. But, how can parties reach agreement without time consuming and expensive arbitration or court proceedings? Mediation is voluntary with both parties trying to resolve their dispute using an independent, unbiased mediator to help reach a negotiated settlement. Mediation is impossible without the willing participation of the parties, and ceases if one party walks out, which they are free to do. It is non-binding up until agreement and is ‘without prejudice,’ meaning that any admission, concession or offer made during the negotiations cannot be used in any subsequent arbitration or litigation. The process is private and parties discuss the issues separately with the mediator, meeting at the end to sign the settlement agreement. The mediator is not negotiating between the parties, the goal is to bring the parties together to understand their differences and objectives, and, more importantly, common goals, giving them the opportunity to reach a solution. Mediation allows parties to discover the differences between their delay experts and help them to see the other’s observations. Being a delay expert and mediator, I see the advantage of being able to ask questions to both parties regarding their analyses. Remember, both contractor and employer have the same goal and that is the project they are building together. Resolving disputes for the sake of the project will give glory to both builder and owner. Lucia Vernon is country director Qatar and Forensic Planning director at Quantum Global Solutions. MEConstructionNews.com | February 2021
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TENDERS
Middle East tenders UAE CULTURAL
Guggenheim Museum BUDGET $800 million TERRITORY Saadiyat Island, UAE CLIENT Abu Dhabi Tourism & Culture Authority DESCRIPTION The project’s scope of work consists of a museum located at Saadiyat Island, Abu Dhabi. The project is a 30000 square meters museum and is planned to reflect Islamic and middle-eastern culture. The museum will have 13000 square meters of gallery space, 18000 square meters of exhibition space and a 350-seat theatre, a library, a research center, and food and beverage, conservation laboratory, and retail outlets. The project will feature artwork that will mark “really, the first global collection after 1965. The project also includes permanent collection galleries is 9474 square meters, special exhibition galleries of 3395 square meters, education center of 513 square meters, theater of 513 square meters, retail of 1500 square meters, visitors service areas, gardens and terraces of 3868 square meters, back of the house of 10,737 square meters. COMPLETION 5/30/23 MIXED-USE
Dubai Creek Tower BUDGET $1.5 billion TERRITORY Dubai Creek Harbour, UAE CLIENT Emaar Properties DESCRIPTION The project’s scope of work consist of a mixed-use tower located at Dubai Creek, Dubai. The Tower, part of the multi-billion-dollar Dubai Creek
Harbour project in Dubai Creek, is inspired by a blooming lily and will be an architectural and engineering marvel due to its eye-catching slender design, the delicate mesh-like structure around it and, of course, its mammoth size. If completed, it will be the tallest tower in the world. The tower will be linked to the central island district within the Dubai Creek Harbour district with a 4.5 kilometers boardwalk offering retail, dining, and leisure and entertainment options. An observation tower surpassing 1008 meters in height will be linked to the central island district of the upcoming Dubai Creek Harbour development. It will feature retail outlets, a hotel, restaurants, a parking space, VIP observation garden deck, glazed rotating balconies and associated facilities. The superstructure comprises three key elements: a concrete core, a steel frame structure on top of the concrete core, and cables descending down from the tower to the ground. The building’s striking design includes a distinctive net of steel stay-cables stays that attach to a central reinforced concrete column that will reach into the
skies. At the top of the tower is an oval-shaped bud that will house several observation decks, offering unprecedented, 360-degree views of the city and beyond. COMPLETION 12/30/24 MIXED-USE
The Island Resort BUDGET $500 million TERRITORY Jumeirah Beach, UAE CLIENT WASL DESCRIPTION The project’s scope of work involves the construction of beachfront development spread over 3.5 million square meters for touristic and leisure services located at Jumeirah Beach, Dubai. It will include an MGM-branded hotel and a Bellagio-branded hotel containing 1400 hotel rooms and
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apartments, 10 villas with a built-up area of 105218 square meters as well as luxurious restaurants and cafés s and a theatre. The project will also include villas, theater, retail shops, indoor and outdoor swimming pools, business person lounge, food and beverage units, museums, beach club, parking facilities, water fountains, marinas, landscapes, dredging, and reclamation 3,000,000m3 area, infrastructure works, construction of roads and artificial waterfalls. The theatre will have a seating capacity of 800 and occupy an area of 80,000 square feet. It will host shows organized by MGM, conferences, festivals, and weddings. The beach club on the island will offer a number of maritime leisure services and activities to guests and visitors. Water shows will be organized in the evenings, and club and its five-star facilities are also capable of hosting special honoring ceremonies. The island will be surrounded by a corniche spanning an area of 1.2 kilometers that will include cafés, restaurants, and retail stores. The ‘Cave of Wonders’, occupying 124,000 square feet of space, will focus on providing entertainment for children and their families through sports and games that cater to different age groups. COMPLETION 3/30/24
SAUDI ARABIA COMMERCIAL
Diriyah Gate Development (Phase 1) Car Park Package BUDGET $60 million TERRITORY Diriyah, Saudi Arabia CLIENT Diriyah Gate Development Authority DESCRIPTION The project’s scope of work involves the construction of a 4-story multi-car park buildings within the Bujairi District of the Diriyah project in Saudi Arabia. COMPLETION 12/30/23 MEConstructionNews.com | February 2021
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TENDERS
HEALTHCARE
Soliman Fakeeh Hospital BUDGET $305 million TERRITORY Madinah Al Munawwarah, Saudi Arabia CLIENT Dr. Soliman Fakeeh Hospital DESCRIPTION The project’s scope of work consist of a 8-storey hospital building located at Al Madinah Al Munawwarah, Madinah, Saudi Arabia. It includes a development area of 6200 square meters. The project also includes integrated emergency departments, specialized laboratories, dialysis centers, physiotherapy centers, chemotherapy centers, parking facilities and associated facilities. COMPLETION 9/30/24 AVIATION
Jubail Industrial City Airport Terminal Building BUDGET $200 million TERRITORY Al Jubail, Saudi Arabia CLIENT Saudi Arabia General Authority of Civil Aviation DESCRIPTION The project’s scope of work involves the construction of an airport located at Al Jubail, Eastern Province, Saudi Arabia. The project also includes a passenger terminal building, runway, a control tower, access roads, load centers and utility networks, car parks, and associated facilities. The terminal can accommodate a maximum of 500,000 passengers per year. COMPLETION 3/30/23
DESCRIPTION The project’s scope of work involves the construction of northern part of the road, which has a length of about 13.8 km, extending from the end of part one of the roads to the northern border of the economic zone, to connect to the Sinaw – Muhut – Duqm road project and extended further southwards up to Sultan Said Bin Taimur road to serve future industrial, commercial, and residential developments in the area. The scope covers construction of 12km of dual carriageways having minimum three lanes on each carriageway with a 12m median paved with interlock tiles, 1km service roads in front of existing filling station, two-lane service roads on each side of the main road with a total length of about 14km and a width of about 7.3m, two roundabouts, wadi bridge, landscaping works, weighing station and associated facilities. COMPLETION 12/30/24
Exploration & Production DESCRIPTION The project’s scope of work involves the construction of Station C at Block 60 of Bisat Oil Development Facility in Oman. The project also includes the treatment of produced water to the required disposal specifications and pumping of produced water to designated disposal water wells at the required injection pressure after treatment, pumping units, storage units, control rooms and associated utilities. COMPLETION 6/30/23
OIL & GAS
Bisat Early Production Facility Station C BUDGET $400 million TERRITORY Muscat, Oman CLIENT Oman Oil Company
OMAN INFRASTRUCTURE
Duqm Dual Carriageway Road NR 32 (Phase 2) BUDGET $370 million TERRITORY Sinaw-MuhutDuqm, Oman CLIENT Duqm Special Economic Zone Authority February 2021 | MEConstructionNews.com
INFRASTRUCTURE
Burj Al Sahwa Transport Hub BUDGET $80 million TERRITORY Willayat A’Seeb, Oman
CLIENT Oman Global Logistics Group DESCRIPTION The projects scope of work consists of a mixed use development located at Willayat A’Seeb in Muscat, Oman. The project also includes parking for public buses, bus station, commercial and residential buildings, hotels, public facilities, tourist facilities, car rentals, information centers, retail shops, offices, medical center, food & beverages outlets, restaurants and entertainment facilities. COMPLETION 3/31/24
BAHRAIN INFRASTRUCTURE
East Hidd Housing Access Roads & Junctions (Package 1A) BUDGET $25 million TERRITORY East Hidd, Bahrain CLIENT Bahrain Ministry of Works, Municipalities Affairs & Urban Planning DESCRIPTION The project’s scope of work involves general filling, reclamation and marine works for development roads and junctions connecting East Hidd in (Avenue 46 Extension) Bahrain. The scope covers construction of roads, bridges, infrastructure works and associated facilities. COMPLETION 12/30/23 INFRASTRUCTURE
Qallali & Wadi Al Sail Housing Units Infrastructure Works BUDGET $25 million TERRITORY Riffa, Bahrain CLIENT Bahrain Ministry of Housing DESCRIPTION The project’s scope of work involves the infrastructure works, roads, landscaping, sewerage lines, drainage and telecommunications systems for housing units at Qallali and Wadi Al Sail at Riffa in Bahrain. COMPLETION 12/30/23
TENDERS
OIL & GAS
INFRASTRUCTURE
Bahrain Remote Gas Dehydration Units
Shuaiba Port Upgradation & Expansion
BUDGET $200 million TERRITORY Bahrain CLIENT Tatweer Petroleum DESCRIPTION The project’s scope of work involves an installation of 20 remote gas dehydration units in the upcoming 5 years from 2021 to 2025, Bahrain. The base scope will be 16 GDUs with adjacent Well Heads divided into three batches: The first batch shall be 8 GDUs to be started up by the end of April 2022, the second batch shall be 5 GDUs to be started up by Nov 2022 and the third batch shall be 3 GDUs to be started up by April 2023, remaining 4 GDUs will be on a call-off basis. COMPLETION 12/30/24
Cooling Plant (Phase 1)
QATAR COMMERCIAL
Al Dhow Harbour BUDGET $75 million TERRITORY Doha, Qatar CLIENT Public Works Authority DESCRIPTION The project’s scope of work involves the construction of an administration building, a guardhouse, sewer lines, water supply systems, storage facilities, parking facilities and associated facilities in Doha, Qatar. COMPLETION 12/30/23
BUDGET $80 million TERRITORY Lusail, Qatar CLIENT Marafeq Qatar DESCRIPTION The project’s scope of work involves the construction of an existing district cooling plant with added capacity, new thermal energy storage tank, installation of water cooled centrifugal chillers and associated facilities in Lusail city of Qatar. COMPLETION 12/30/23
KUWAIT
RESIDENTIAL
INFRASTRUCTURE
Al Deera Residences
Al Sabah Medical District SHPT W 300kV Substation
BUDGET $35 million TERRITORY Doha, Qatar CLIENT Al Deera Commercial Real Estate Company DESCRIPTION The project’s scope of work involves the construction of apartments, central courtyard, parking facilities in Bin Mehmoud, Doha Qatar. COMPLETION 3/30/23 INFRASTRUCTURE
Lusail West District
BUDGET $60 million TERRITORY Al-Sabah Medical District, Kuwait CLIENT Kuwait Ministry of Electricity & Water DESCRIPTION The project’s scope of work involves the supply and installation of SHPT “W” 300/132/33 kilovolts (kV) substation located in Al-Sabah Medical District, Kuwait City,
Kuwait. The project includes 275/300 KV double busbar totally enclosed, metal-clad, SF6 gasinsulated switchgear, 132/145 KV double basbar totally enclosed, metal-clad, SF6 gas-insulated switchgear, 300 Mega Volt Amp (MVA) 300/132/33 KV power transformers, 33kV, 45 MVAR shunt reactors, 33 kV switchgear, 11 kV switchgear, 30 MVA, 132/11.5 KV power transformers, 1000 kVA 11/0.433 KV cast resign station transformers, HV/MV power cables and terminations, AC/DC auxiliary power supply, control/protection system, communication system, air conditioning system, fire detection/alarm and safety and fire protection system, civil/structural works and mechanical works. COMPLETION 12/30/23
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BUDGET $110 million TERRITORY Shuaiba, Kuwait CLIENT Kuwait Ports Authority DESCRIPTION The project’s scope of work involves the upgradation and expansion of a Shuaiba Port located at Shuaiba, Al Ahmadi Governorate, Kuwait. The project includes rehabilitation, upgrade and expansion of the existing utilities and infrastructure- operational problem identification, evaluation of road pavement and drainage systems, salt and freshwater network and sewerage system, upgrading of an elevated water tank and new lifting stations for the sewer system, the provision of new substations and modifications of existing substations (to comply with latest industry standards and requirements). COMPLETION 3/30/23 OIL & GAS
North Kuwait Excavation Transportation & Remediation (Zone 1 & 2) BUDGET $900 million TERRITORY North Kuwait, Kuwait CLIENT Kuwait Oil Company DESCRIPTION The project’s scope of work involves the construction of a soil remediation project of 2,000,000 m3 oil-contaminated soil in Zone 1 of North Kuwait. The scope involves expansion of an existing landfill facility for Hydrocarbon Contaminated Soil, remediation & excavation works of all wet oil lakes (WOL), dry oil lakes (DOLs) and oil contaminated piles (OCPs), coastal deposits, wellhead pits, coastal trench, tarcrete, backfilling works, development of treatment platform areas and associated facilities. COMPLETION 3/30/24
MEConstructionNews.com | February 2021
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PROGRESS REPORT
Final update
36m suspension bridge installed in RAK 36m-long bridge has been installed at a height of 44.2m and is supported by four main trusses, each weighing 55 tonnes
H
ospitality developer RAK AMI Hotel has completed the installation of what is billed as the longest suspension bridge in the northern emirates. The bridge connects two buildings of the under construction Mövenpick Resort Al Marjan Island.
The suspension bridge is one of the stand-out features of the hotel that is being developed at a cost of $148m. The bridge is 36m-long, and has been installed at a height of 44.2m. It will contain eight hotel rooms and is supported by four main trusses, each weighing 55 tonnes. With intermediate beams and a composite floor deck, the bridge structure was assembled at the ground floor in two pieces comprising of two trusses each and lifted using a 650-tonne crawler crane. It was fabricated using 310 tonnes of structural steel, the developer explains. The project, from design to installation, was completed in around 65 days by over 55 professionals and skilled workers.
February 2021 | MEConstructionNews.com
Record setter The suspension bridge is the longest in the Northern Emirates, according to RAK AMI.
310 tonnes of
structural steel was used to fabricate the bridge
“The suspended bridge is designed to be one of the iconic features of the Mövenpick Resort Al Marjan Island that will not only add to the aesthetics of the project but also create an inspiring architectural marvel that delight visitors to Al Marjan Island. We are progressing with the construction of the hotel as per schedule, with an international team of professionals on-site. The suspended bridge will be a value-add for the hotel and support the emirate’s tourism sector,” says Marjan CEO Abdulla Al Abdooli. Apart from serving as a connection point, the bridge will offer viewing points of Al Marjan Island. “A unique engineering marvel, the bridge is expected to become a leading tourist landmark and add new economic value to Al Marjan Island and Ras Al Khaimah.” he concludes.