117
DECEmbEr 2015 meconstructionnews.com
THE BUSINESS OF CONSTRUCTION
s s e n i s u b best in Big project me celeBrates the work of the top contractors in the gcc
kUWAIT HEAdqUARTERS By Of Nk BA L RA NT CE ar Ye e th of ct OOkfIELd MULTIpLEx; proje ar - EvERSENdAI BR Ye e ar th Ye of e or th ct of ra or nt ct co ra ist nt ial co ec l sp ra T; ne UNG C& ERS: ge CONGRATULATIONS TO ALL OUR WINN - kEz TAyLOR, CEO Of ALEC; infrastructure contractor of the Year - SAMS loper of the Year - WASL ASSET MANAGEMENT GROUp; ve ar CSCECME; construction ceo of the Ye the Year - dONNA SULTAN, CEO Of kEO INTERNATIONAL CONSULTANTS; De of winners on page 24 t lis ll fu e th e se G; RIN EE GIN EN AI of Nd ntractor of the Year - EvERSE co ist ENGINEERING; Big project me woman ial ec sp f; Of RH HE Ck IN BR S ON - WSp | pARS contractor’s consultant of the Year
Contents
Issue 117 December 2015 14
18
24
38
44
52
04 ME Construction News.com
16 Retail Overview
44 Top 10 GCC Mixed-Use Projects
06 Qatar contractor travel ban
18 Bishoy Azmy
52 The Big 5 closes with a bang
OnlIne
The biggest stories from Big Project Middle East’s home on the web The bIg pIcTure
Qatar imposes travel ban on contractors after heavy rains damage construction projects
12 Turkish firm eyes Dubai market InTernaTIOnal news
Vekon looks to enter the Dubai low-cost housing segment
14 Trouble in the Kingdom news analysIs
Big Project ME looks at whether the layoff of 15,000 workers by Saudi Binladin is symtomatic of larger problems in Saudi Arabia
InfOgraphIc
Examining Dubai and Abu Dhabi’s retail supply In prOfIle
Big Project ME talks to the CEO of Al Shafar General Contracting about how he’s positioning the contractor for success
24 Contractors to the Fore
bIg prOjecT me awarDs 2015
Celebrating the achievements of the GCC’s top contractors
38 First in Class sITe vIsIT
Gavin Davids is on-site at the Alef Residences on the Palm Jumeirah
TOp 10
Jerusha Sequeira looks at the ten biggest mixed-use developments under construction shOw revIew
Big Project ME reviews the region’s biggest construction show, The Big 5 Dubai
54 Middle East Tenders TenDers
Big Project ME lists the region’s biggest construction tenders for December 2015
60 GCC contractors still to understand BIM lasT wOrD
Paul Wallett of Tekla says contractors don’t grasp the full potential of BIM technology December 2015 2
Introduction
Everyone’s a winner
W
here else to start this month’s column than with the Big Project Middle East Construction and Sustainability Awards of Excellence 2015? What a fantastic night it was for everyone involved. We’ve been humbled and gratified by the number of tweets, emails and well-wishes that we’ve gotten from attendees since 24 November, 2015. It was an absolute pleasure to host the awards, and a big thank you is due to everyone who attended the event. If it was a success, it was only because the people who were there made it so. I’m already looking forward to next year’s event, and I can’t wait to see the industry out in force again. Hopefully, those shortlisted companies who didn’t pick up the winners’ trophies will be coming back with a vengeance for the 2016 edition. What’s life without a bit of friendly competition, after all? We also held the first ever Middle East Consultant Awards on 6 December, 2015. I have to say that I’m quite proud of how far Big Project ME’s little sister magazine has come along in the last two years. From being an upstart little publication, it has firmly established
EDItORIAL EDItOR GaVin DaViDS gavin.davids@cpimediagroup.com +971 4 375 5480 REPORtER JeRuSHa SeQueiRa CPI MEDIA GROUP GROUP ChAIRMAn AnD FOUnDER Dominic De SouSa GROUP CEO naDeem HooD
jerusha.sequeira@cpimediagroup.com +971 4 375 5477 OnLInE EDItOR Ben FLanaGan ben.flanagan@cpimediagroup.com SUB EDItOR aeLReD DoYLe aelred.doyle@cpimediagroup.com
PUBLIShInG DIRECtOR RaZ iSLam raz.islam@cpimediagroup.com +971 4 375 5471 EDItORIAL DIRECtOR ViJaYa cHeRian vijaya.cherian@cpimediagroup.com +971 4 375 5472
2 December 2015
ADvERtISInG COMMERCIAL DIRECtOR micHaeL STanSFieLD michael.stansfield@cpimediagroup.com +971 4 375 5497 SALES MAnAGER FaaJu aBDuLFaTaH faaju.abdulfatah@cpimediagroup.com +971 4 375 5495
MARKEtInG MARKEtInG MAnAGER LiSa JuSTice lisa.justice@cpimediagroup.com +971 4 375 5498 DESIGn ARt DIRECtOR Simon coBon CIRCULAtIOn & PRODUCtIOn DIStRIBUtIOn MAnAGER SuniL KumaR sunil.kumar@cpimediagroup.com +971 4 375 5476 PRODUCtIOn MAnAGER ViPin V. ViJaY vipin.vijay@cpimediagroup.com +971 4 375 5713 DIGItAL WEB DEvELOPER mohammad awais WEB DEvELOPER umair Shamim
itself as one of the leading voices in the construction industry. Together, I think we make a pretty formidable team, and I’m pretty excited about how the CPI Construction team is going to be able to take the two brands forward and best represent both sides of the GCC’s construction story. Next year is already shaping up to be a really interesting year for the regional construction industry. A number of contractors and consultants have told us that 2016 will be the acid test for the region, as we’ll start to see major megaprojects take shape at a time when governments are starting to reassess and review their budgets and spending for the next few years. Whatever happens, you can be sure we’ll be there to cover it.
Gavin Davids Editor gavin.davids@cpimediagroup.com
PUBLIShED By
Registered at imPZ Po Box 13700 Dubai, uae Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com Printed by Printwell Printing Press LLc © copyright 2015 cPi. all rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
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Online
L A U N C H PA R T N E R
Big Project Middle East’s home on the web MOST POPULAR
1
READERS' COMMENTS
EDITOR'S CHOICE
Drake & Scull, Arabtec shares hit hard as
Dubai market tumbles Shares in developers Emaar and Damac fell as the Dubai Financial Market index hit an 11-month low
2
PHOTO GALLERIES Dubai’s Arabtec reports heavy losses in “difficult
regional market” Contractor reports fourth consecutive period of losses, falling $257 million further into
Viceroy Dubai Jumeirah Village under construction A tour of the one-of-a-kind mixed-use project by SKAI Real Estate Development. See photo galleries at: meconstructionnews.com/photos
the red in the third quarter
3
Al Habtoor Group “to sell its stake in HLG”
Name not supplied, comment to story ‘Hacking scam alert after fraudsters target Dubai construction firm’
Dubai conglomerate to focus on its 100%-owned assets, according to TV report
4
Top 10 Oman infrastructure projects
READER POLL Will the Gulf construction sector step up executive recruitment in 2016?
Despite the decline in global oil prices, Oman is pressing ahead with several large projects
5
Abu Dhabi’s Aldar to launch sale of Mayan
units on Yas Island Prices start at $217,800
39% 6% VIDEO
Dubai theme parks under construction
residences will be available to
A sneak peek at the Dubai Parks and Resorts development, which is due to open in October 2016.
buyers of all nationalities
See videos at: meconstructionnews.com/videos
for a studio apartment;
“We also had a similar situation [as described in MEConstructionNews.com article about online fraudsters targeting regional construction firms]. But thankfully, our accounts realised that there was fraud interception of our emails and our emails were compromised. Hence we took immediate action by informing the client through phone and personal emails to avert a disaster of money being transferred to the fraudsters’ accounts. The matter was reported to the police”
Yes: There will be more jobs created
Yes: People will move for better salaries
31%
22%
No: The market will be stagnant
No: I expect layoffs
Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com 4 December 2015
Dongdaemun Design Plaza
The big picture
Storm clouds gather Heavy rains caused severe leakages at Hamad International Airport, prompting concerns over the quality of construction work.
Qatar imposes travel ban on contractors amid rain damage probe Allegedly shoddy construction practices behind heavy rain damage Qatar has banned executives of several contractors from leaving the country amid a probe into how heavy rains last week damaged buildings and roadways, Associated Press (AP) reported. State-run Qatar News Agency (QNA) announced the travel ban on Friday, saying “owners of companies, contractors and consulting engineers” would be banned from going abroad until the end of the probe. Qatar was last week deluged by a year’s worth of rain, with $15 billion Hamad International Airport in Doha the worst hit. Rain poured through the airport’s roof and also flooded streets, shutting down some 6 December 2015
stores and malls in the Qatari capital, AP reported. A few schools were also closed on account of the heavy rains, local media reported. The heavy rains have prompted the government to launch a probe into whether construction practices were responsible for the damage. The investigation is examining the work of five unnamed companies and others could also be targeted in the investigation, launched by Prime Minister Sheikh Abdullah bin Nasser bin Khalifa Al Thani. “Parties responsible for dereliction or negligence, whether governmental or private, will be held accountable,” QNA said, citing a statement
from Qatar’s Government Communication Office. When reached for comment by AP, officials at Hamad International Airport issued a statement saying there was no impact on operations. At least 79.5mm of rain fell at the airport on Wednesday, according to the Qatar Meteorology Department. Typically, the GCC state gets around 50mm of rain in a year. The rainfall caused water
to pour out of the airport’s ceiling in several places, captured in online videos. Hamad International Airport opened in April last year, and is part of a multi-billion-dollar construction boom in Doha ahead of the 2022 World Cup. The push has seen Qatar come under fire over the treatment of migrant workers, and there have also been accusations of shoddy construction work being carried out on projects.
$15 billion
Total value of Hamad International Airport
The big picture
Saudi developer secures $2.2bn funding to finish world’s tallest tower Jeddah Economic Company in finance deal to complete 1km-tall tower A Saudi Arabian developer backed by billionaire Prince Alwaleed Bin Talal has agreed a SAR 8.4 billion ($2.2bn) finance deal to finish work on what is set to be the world’s tallest building. The Jeddah Economic Company and Alinma Investment, established by Alinma Bank, have signed a deal to initiate the fund, according to a statement issued by Kingdom
Holding, an investment firm controlled by Alwaleed. The deal will fund completion of the $1.2 billion Jeddah Tower, also known as the Kingdom Tower, which is set to rise 1km or higher, surpassing Dubai’s Burj Khalifa as the world’s tallest tower. Construction work is already underway, with 26 floors completed.
The fund will also go towards developing the wider Jeddah Economic City development, according to the statement. The scheme is in Obhur, just north of Jeddah on the Red Sea coast. The fund, to be named the Alinma Jeddah Economic City Fund, will be Sharia-compliant and operate under the Saudi Arabian Capital Market Authority Cash to build The fund will be Sharia-compliant and will operate under the Saudi Arabian Capital Market Authority and current laws of the Kingdom.
“It will be a major source of job opportunities for Saudis. We expect 50,000 jobs on offer as we open shop for phase one of the project” 8 December 2015
and current laws of the kingdom, the statement said. Alinma Bank will finance the fund, while Alwaleed will chair its board. “This agreement with Alinma is part of Jeddah Economic Company’s drive to diversify its sources of funding for Jeddah Tower and Jeddah Economic City,” said Prince Alwaleed in a statement. “Jeddah Economic City will be a must-go destination for those who visit Jeddah for business, trade, entertainment, culture, medical treatment and education, and will be a trendsetter in future real estate and urban development, all while securing the future of young Saudis with job opportunities and meeting the ever-growing demand for housing.” In a June 2015 interview with Big Project ME, Mounib Hammoud, CEO of Jeddah Economic Company (JEC), said that the Kingdom Tower and City would significantly boost Jeddah’s economy. “It will be a major source of job opportunities for Saudis. We expect 50,000 jobs on offer as we open shop for phase one of the project.” Job creation is expected to be driven by the hospitality, retail, leisure and entertainment facilities within the project. Hammoud added that the project would also bring more visitors to Jeddah, an expectation shared by the government, which is investing heavily in the development of public transport infrastructure to upgrade Jeddah’s tourism offering.
The big picture
Drake & Scull wins contracts worth $36m in Abu Dhabi, Dubai Subsidiary to deliver MEP for high-rise tower and district cooling plants The engineering subsidiary of Dubai-listed Drake & Scull International says it has won contracts worth a combined $36 million for two UAEbased projects. Drake & Scull Engineering (DSE) says it has been commissioned to deliver mechanical and lighting works for a mixed-use residential and commercial tower in Abu Dhabi, and to undertake heating, ventilation and air conditioning (HVAC) works for two district cooling plants in Dubai. The Abu Dhabi contract will see DSE install HVAC, building management, firefighting, water supply, drainage systems and lighting fixtures in the Abu Dhabi tower. Work on the project has already commenced, with handover scheduled for 2018. DSE is due to commence work on the two district cooling plants in Dubai in January, according to the statement. The company did not name the projects or give more specifics about the owners. The deals bring the firm’s total project awards in 2015 to a value of $653 million, according to a statement to the Dubai Financial Market. “The two projects will be a vital addition to our current projects backlog, which stood at $3.36 billion as of 30th September 2015,” said Ahmad Al Naser, managing director of Drake & Scull Engineering. Earlier in November, shares in Drake & Scull – which earlier reported it had moved into loss in the third quarter – fell by 10%, the maximum daily limit under 10 December 2015
bourse regulations, to AED0.414. In August this year, the Dubailisted contractor reported total revenues of $650.7 million and
a net profit of $9.25 million for the first half. DSI’s operating profit for H1 2015 was $15.8 million, down by 27% compared
to the same period in 2014. The firm attributed the decline in operating margins to delays and cost overruns on projects.
$3.36 billion
Total value of DSE’s total order backlog (as of September 2015) Vital additions Ahmad Al Naser said that the new deals in Abu Dhabi and Dubai would be vital additions to DSE’s backlog.
The Palm Jumeirah Villas-Garden Homes, Dubai, UAE
Sheikh Khalifa Specialist Hospital, Ras Al Khaimah, UAE
China State Construction Engineering Corporation (Middle East) (L.L.C) is an integrated part of and one of the major overseas operational entities of China State Construction Engineering Corporation Ltd. (CSCEC), whose shares are traded on the Shanghai Stock Exchange. Established in March 2005, in Dubai, CSCEC ME has grown to be one of the largest construction groups in Middle East with offices in the Kingdom of Saudi Arabia, Kuwait, Bahrain, Qatar, and UAE. The company has comprehensive capabilities to undertake the following business lines: • • • • • •
Abu Dhabi International Airport
Midfield Terminal, Abu Dhabi, UAE
Building Construction Works Infrastructure, Civil Engineering and Industrial Projects Oil & Gas Projects Steel Structure Projects Mechanical & Electrical Works Project Investment & Financing
As per the Mission Statement-“Expanding a Happy Living Environment”, CSCEC ME endeavors to create values for the customers, employees, shareholders and the society. Having deep faith in our commitments drives our pursuit of the sustainable development to the company and society in the region.
R902/1-Improvement of Sheikh Mohammed bin Zayed Road-Stage 2, Dubai, UAE
Viceroy Dubai Palm Jumeirah, Dubai, UAE
New Office Building of Central Bank of Kuwait, Kuwait
Address: 8th Floor, 1 Lake Plaza, Jumeirah Lake Towers P.O.Box: 63932, Dubai, UAE Tel: +971 4 4537268, Fax: +971 4 4537368 | Email: info@chinaconstruction.ae
The big picture
1. Bechtel wins $605 million Us navy contract for nUclear propUlsion components Bechtel’s plant machinery division has won a contract potentially worth $605 million to continue to provide nuclear propulsion components to the US Navy, it has been announced. The US Department of Defense said that the cost-plusfixed-fee contract was awarded under the Naval Nuclear Propulsion Program, by the Naval Sea Systems Command. It is part of an initiative by the National Nuclear Security Administration, which aims to research, design, construct, maintain and operate the service branch’s nuclear-powered vessels and other facilities. Bechtel will perform work in Pennsylvania and New York, the Department of Defense said. NAVSEA will obligate the full contract amount from the service branch’s fiscal 2016 shipbuilding and conversion funds at the time of award, a report by US-based news website GovConWire.com added.
12 December 2015
1
$2.1bn Carillion war chest following funding deal
2. tUrkish prefaBrication firm vekon looks to DUBai market Vekon, an Istanbul-based prefabricated building company, is looking to make its mark in Dubai with its low-cost housing products, a representative said. The company, which currently operates in over 75 countries, makes prefabricated buildings for construction sites as well
as modular office and living spaces. Its products include worker accommodation, site offices and warehouses for the construction industry. Ahmed Ali, sales engineer at Vekon Qatar, said the company was looking at the Dubai housing market. “We do low-cost homes around the world. Specifically here in Dubai, we’re looking at entering the housing market. Although
we make low-cost homes, we can also make higherquality products depending on the client’s requirements,” he told Big Project ME on the sidelines of The Big 5. The company already has projects in Qatar related to worker accommodation, Ali added. Vekon’s products are built by one of the holding companies of its parent company Vefa.
The big picture
$394m
Value of contract awarded to Samsung C&T by Singapore’s Land Transport Authority for the construction of Marine Parade MRT station 2
4
3
297
Number of luxury apartments being built in a $200 million Ghanaian project by Korea & Ghana Development
3. constrUction work starts on kef holDings-BackeD research facility in tamil naDU The foundation stone for the MIT-KEF R&D Centre for Offsite Construction was laid on 28 November, 2015, marking the start of construction for the $1.49 million project, it has been announced. The project is being set up with an equal contribution from KEF Holdings-backed Faizal
and Shabana Foundation and Manipal University. It is planned to be a leading research facility for the research and development of construction technologies. The MIT-KEF R&D Centre will also serve as an extension to the work being carried out at KEF Infra One industrial park, a 60,386sqm facility in Krishnagiri, Tamil Nadu. The occasion was also marked by a plaque unveiled by Faizal Kottikollon, Shabana
Kottikollon and Dr Ramdas Pai, Chancellor of Manipal University, in the presence of university officials, the media and KEF and Foundation delegates. A sapling was also planted on the MIT campus to commemorate the visit. Faizal Kottikollon was also invited to Manipal University, where he urged graduates to use their experience and knowledge to create modern and efficient services that would be available to everyone.
4. hong kong constrUction threatens enDangereD ‘pink’ Dolphins Conservationists have warned that Hong Kong’s famous ‘pink’ dolphins are under threat due to two major construction projects currently being planned for the territory. Chinese authorities plan to expand Hong Kong’s airport and build a new bridge to Macau, but the two mega-projects are expected to have a major impact on the dolphin’s habitat, chiefly due to land reclamation and increased traffic, experts say. A proposal has been put forward to construct a third runway at Hong Kong’s Chek Lap Kok airport, and campaigners say it could be the final nail in the coffin for the Chinese white dolphin, popularly known as the ‘pink dolphin’ due to its pale pink colouring. There are an estimated 60 dolphins left in Hong Kong’s waters, a steep drop from the 158 counted in 2003. The dolphin pods in the harbour draw tourists daily. The government has said that the potential impact of the building of a third runway has been “properly addressed and assessed”.
December 2015 13
News analysis
Trouble in The Kingdom Big Project ME looks at whether Saudi Binladin Group’s layoff of 15,000 staff is symptomatic of a much larger problem in the Kingdom
Last month it was revealed that construction giant Saudi Binladin Group plans to lay off around 15,000 staff as the impact of low oil prices continues to be felt, according to a Reuters report citing industry sources. The possible layoffs at the firm, among the Middle East’s largest builders, would represent a small fraction of the group’s total workforce, which is said to be about 200,000. Saudi Binladin has so far declined to comment on the matter.
“The Saudi construction sector is definitely soft. There’s general uncertainty and it’s very difficult to plan where to focus on, because companies are not sure which projects will go ahead,” said an industry source who declined to be named. Some of the 15,000 staff will be laid off immediately, while others will be temporarily transferred to work on a multibillion-dollar airport project in Jeddah, another source said. In September, the Saudi Binladin Group was suspended 14 December 2015
Worker layoff Saudi Binladin Group will lay off some 15,000 staff as a result of low oil prices impacting the contractor’s operations.
News analysis
ManaGEMEnT REShuffLE In the summer of this year, Saudi Binladin president Bakr Bin Laden addressed a letter to senior members of the Bin Laden family, where he stated his intention to entrust his foremost duties to director Saleh Mohammed Bin Laden. He also identified a number of key figures to assist in the handover, and advised his successor to exercise caution in the selection of future SBG projects. “Dear brother [Saleh Mohammed Bin Laden]. You need to concentrate on preserving the rights of the group [SBG], both in terms of documentation and in calling for legal restitution, while preserving our good reputation in the process. You also need to be sure of the business feasibility of future projects, from every aspect, before you give your blessings on them and thus the group’s commitment to execute them,” Bakr Bin Laden said in the letter.
from taking on new projects after a crane collapsed at Mecca’s Grand Mosque, killing 107 people. An initial government probe found that the crane was not properly secured and toppled as a result of bad weather conditions on the day. However, Saudi officials have said that sanctions against the contractor won’t hit current projects. Speaking via an intermediary to Reuters, a senior Saudi official explained that the Kingdom will continue to make payments to the Saudi Binladin Group for ongoing work. He claimed that the review of the company’s current jobs after the Mecca crane disaster was to ensure that it meets safety standards. An initial government investigation found that the crane had not been secured in accordance with its instruction manual. The contractor has traditionally been the Saudi government’s favoured contractor for very large or complex projects. It has worked for decades on projects in Mecca and Medina, as the government looks for ways to accommodate more pilgrims. The biggest challenge facing the firm and other construction companies in the kingdom, however, is government spending cuts due to low oil prices. According to the International Monetary Fund, Saudi Arabia is running an annual state budget deficit of over $100 billion, and the kingdom’s finance minister said in September that the government was delaying some projects to save money. While the finance minister did not elaborate on this, industry sources have confirmed to Reuters that a plan to build football stadiums across the country has been cut back and a $201 million contract to buy high-speed trains has been
cancelled, while expansion on an oilfield has been slowed. Bloomberg reported last month that Saudi Arabia was delaying payments to contractors after the oil slump pushed the GCC nation into a deficit. Government bodies have also demanded cost cuts from some contractors, Reuters reported. Additional information on austerity measures is likely to come next month, when the Saudi government is expected to announce its budget plan for 2016. In addition, labour market reforms designed to push more Saudi citizens into private sector jobs have since 2011 made it difficult and more expensive for construction firms to hire foreign workers, increasing pressure on the industry. This was reflected in data showing that job postings in Saudi Arabia’s construction sector fell by almost a fifth in the year to October, amid a wider slowdown in Middle East recruitment growth, according to Monster.com. The sense of pessimism in the Saudi Arabian construction industry was reinforced by comments made by the CEO of a major Saudi builder, Abdullah Abdul Mohsin Al-Khodari Sons, again in a Reuters report. “I think we should expect the difficult situation in the sector to go on for 18 more months,” said Fawwaz al-Khodari, chief executive of the builder. “Companies are facing troubles mainly due to the labour reforms. We will see the result of the budget deficit later, but now we are in a situation where the pain is already there. I believe many projects that are not seen as being essential will be first to be shelved, including those that were tendered but not awarded.” December 2015 15
Retail report
DUBAI AND ABU DHABI Dubai retail supply Recent retail development/ supply in Dubai has focused on new mall expansion projects (such as Mall of the Emirates and Ibn Battuta) while other projects included community focused, niche shopping centres such as d3 and Me’aisem City Centre. The recent expansion of Mall of the Emirates and Dubai Mall also indicates the continued demand for super-regional malls in Dubai as well as the repositioning of the tenant mix.
The Mall of the World, a 743,000sqm (8 million sq ft) master planned development in the heart of Dubai, highlights the potential growth for the retail sector in Dubai at the super-regional level and the high level of confidence held among developers. The Dubai retail market continues to be dominated by super-regional malls, representing 52% of the existing supply, while new developments focus on regional and community retail projects, accounting for 12%.
Total mall supply, Dubai (GLA sqm)
Existing
The Dubai retail market continues to be dominated by super-regional malls, representing 52% of the existing supply
Existing retail supply, Dubai
Upcoming
2% 9%
5m
13%
4m
52%
3m
24%
2m
1m
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Dubai population, 2014-2020 (millions)
Super-regional
Community
Regional
Neighbourhood
Convenience
Upcoming retail supply, Dubai
3
88%
2
1
2014
2015
16 December 2015
2016
2017
2018
2019
2020
Super-regional
Community
Regional
Neighbourhood
Source: Knight Frank Research
1% 3% 8%
4
Retail report
RETAIL OVERVIEW Abu Dhabi retail supply
Abu Dhabi’s supply continues to be focused on larger projects including regional malls, such as Reem Mall and Maryah Central. This is in addition to planned mall expansion projects such as Marina Mall. Abu Dhabi retail is currently segmented with c.10% community retail and c.80% regional and super-regional. This clearly highlights the significant change in retail format since 2012, when superregional malls did not exist and regional malls were more
primitive in their offering. Yas Mall, which opened in late 2014, provides Abu Dhabi with a new super-regional mall (238,000sqm) which, with surrounding attractions such as Yas Waterworld and Ferrari World, will help ease the flow of residents to Dubai, as well as attract tourists to the capital. Abu Dhabi continues to witness the delivery of new hotel developments, which is creating potential demand from leisure and business visitors alike.
Total mall supply, Abu Dhabi (GLA sqm)
Existing
Abu Dhabi retail is currently segmented with c.10% community retail and c.80% regional and super-regional
Existing retail supply, Abu Dhabi
Upcoming
1% 7%
5m
11%
4m
45%
3m
36%
2m
1m
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Abu Dhabi population, 2014-2020 (millions)
Super-regional
Community
Regional
Neighbourhood
Convenience
Upcoming retail supply, Abu Dhabi
4
12%
8%
3
36%
2
44%
1
2014
2015
2016
2017
2018
2019
2020
Super-regional
Community
Regional
Neighbourhood
December 2015 17
In profile
“If we have real clIent satIsfactIon, then everythIng else wIll come. you’ll have more work, you’ll be treated faIrly and your payments wIll be fIne” 18 December 2015
In profile
Bishoy Azmy, CEO of ASGC (Al Shafar General Contracting), talks to Big Project ME about the changes his company has gone through over the last year, and how he’s positioning it for success in the local construction market
December 2015 19
In profile
l
ast year, when Bishoy Azmy was interviewed by Big Project Middle East, he related the tale of how he brought his company back from the brink in the wake of the financial and real estate crisis. Back then, his mood was one of cautious optimism as he looked to position his company to take advantage of a Dubai market that was still a little unsure of where it was headed and how it was going to get there. Eighteen months on from that interview, things have changed rapidly for this Dubai-based contractor, starting with the relocation of its company headquarters to a brand new space in Dubai Properties’ Bay Square project in the Business Bay area, which ASGC actually built. It is here that Big Project ME meets Bishoy Azmy, in his office overlooking Dubai Creek, which encircles the burgeoning commercial district, a symbolic setting for this discussion about where ASGC is headed as 2016 looms. “2015 has been a very good year for us, we grew significantly from 2014 and witnessed double-digit growth – maybe something north of 20% – which is healthy. We’re also working on interesting projects and we’re developing the company in terms of systems, procedures and technology,” Azmy says when asked to sum up the year just passed. “We’re being supported by a few good, key staff additions – people 20 December 2015
careful planning ASGC’s resurgence is down to a strategy established in 2009 and 2010.
with different experiences and visions. So in general, it’s been a year where we’ve improved the company’s status on most fronts.” This resurgence is down to a strategy established back in 2009 and 2010, when the company was struggling to get back on its feet following the body blows it had taken during the financial crisis. “I still remember the crisis of 2008 and 2009, and the lessons learnt from that crisis, which were: focus on key strategic clients and focus on projects and sectors that are not cyclical. In addition, we’ve also decided to focus on larger projects.” This new strategy has led to ASGC entering new territories in 2015, with the oil and gas sector a notable success for them. The contractor currently
“In companies where we’ve had spectacular management, we’ve had better than expected market results. In companies where we’ve had acceptable management, we’ve achieved market results”
has three projects in operation with ADNOC and related subsidiaries. It is also building industrial plants, such as a factory for Nestlé, as well as projects in the education sector, with a secondary school under construction in Abu Dhabi. “We’re also building key government establishments such as the Etihad Museum, which is a national, historical masterpiece for the UAE. We’re also building luxury hotels like the Marina Bloom in Abu Dhabi Marina, and we’ve got healthcare work – we’re building a hospital as part of our CityWalk development,” Azmy reveals. Clearly, the strategic decisions that were taken a few years ago are now bearing fruit. However, despite the entry into new fields and sectors, Azmy says there are many other aspects to consider. In a market as competitive as Dubai, one crucial element is the development of client relationships. Contractors often aren’t just chosen on their body of work, but also on the relationship a client has with them. When contracts have tight deadlines and fluid goalposts, it helps to have a strong relationship with your client, as many a contractor in the region will tell you. This not only helps you surmount problems and challenges rapidly, but also allows a certain amount of flexibility from both sides, as Azmy explains. “We do a lot of research before targeting a few select clients, and then we bombard these clients with attempts at penetrating them and asking them whether we can work with them on any kind of project. And then we make a huge effort, firstly to secure at least one contract – profitable or not profitable – and once
In profile
we secure it, we make sure that the client is happy.” The key to this strategy is, as Azmy puts it, if the client is happy, then everything else falls into place. “If we have real client satisfaction, then everything else will come. You’ll have more work, you’ll be treated fairly and your payments will be fine. You won’t be left high and dry in the end, as clients will care for the long-term sustainability of one of their supply chain vendors, who are us,” he asserts. As the calendar ticks over to 2016, it’s only natural for the CEO to take stock of the year just passed. Having seen his company post strong growth figures over the course of the year, the target now is to continue the
“We’re waiting to see what happens with Saudi Arabia over the coming period. It may be a year or two before we decide whether or not we can successfully enter it”
trend of double-digit growth. Of course, Azmy is well aware that this won’t be easy in such a competitive market. “The challenge now is finding projects that give you that growth without undermining the bottom line. It may not be so difficult to do that, but you might have to pick up work that’s not profitable, that has a very tight margin or has a lot of risk that may turn out sour in the end. “Our challenge is to shift through the work out there and ensure that we succeed in getting projects that deliver correct final returns for our shareholders. Construction is a difficult business that depends on singledigit margins. If you’re not being paid, even if it’s only the last
10% for retention, then you’ve lost all your profit for the job.” Perhaps this is why, despite having previously expressed an interest in the wider regional markets, Azmy is content to keep his focus on Dubai and Abu Dhabi, in addition to Egypt, where the firm also has two live projects – one with Emaar and the other with a local developer. Saudi Arabia, while obviously a market of enormous potential for any contractor, also poses significant risks and challenges, as he explains. “At the moment, we feel that the region outside the UAE is quite challenging, and hence we’re quite happy being somewhat cocooned here in the UAE. Saudi Arabia is a bigger doubling down Bishoy Azmy is targeting doubledigit growth for ASGC in 2016.
December 2015 21
In profile
market than Egypt and even the UAE, and we’ve always said that this is the market we’d like to expand to beyond the UAE. But we feel that it is very, very challenging at this time. We’re waiting to see what happens with Saudi Arabia over the coming period. It may be a year or two before we decide whether or not we can successfully enter it.” When asked why he’s so reluctant to enter the Kingdom’s market, Azmy is quick to point out an issue that has been a bugbear for many a contractor. “Payments are the biggest challenge for us to enter the Saudi market. Our understanding, based on discussions we’ve had and intelligence that we’ve received, is that contractors face challenges receiving payments, more so towards the latter half of the project.” “This company is a for-profit organisation that is designed to maximise shareholder returns. If we feel that we’re going to face [difficulties in obtaining payments], even if it’s a fantastic environment in terms of work, size of projects and expansion and so on, but if we’re then unable to deliver returns to our shareholders, then to us there’s no point until these conditions improve.” However, that doesn’t mean there won’t be a lot going on at ASGC over the next few years. Even with the company’s focus firmly fixed on the UAE market, there’s still plenty to do. The contractor is currently involved in two major Dubai projects that received a lot of media attention when they were announced – the Etihad Museum for the RTA, and the residential buildings for Meraas Holdings’ Bluewater Island. With the market set to be increasingly competitive over 22 December 2015
“If we’re then unable to deliver returns to our shareholders, then to us there’s no point until these conditions improve” ready to take off Bishoy Azmy says that ASGC is now in a position to take advantage of any opportunities the market offers.
the coming months, especially as the pace of construction picks up in the build-up to Expo 2020, Azmy says he’s confident that ASGC is now in a position to take advantage of whatever opportunities the market offers. Having hired a number of staff over the course of 2014 and 2015, he says that with a current staff size of about 14,500 (15% whitecollar and 85% blue-collar), the contractor is now stable for the next year or so, with no plans for staff expansion in the pipeline in the near future.
However, that doesn’t mean that there isn’t a focus on improving operations. With ASGC consisting of a number of subsidiaries, such as Hard Precast Building Systems, Assent (steel engineering), Al Shafar Interiors, Al Shafar United Electro-mechanical Engineering and Emirates Beton, the divisions need to pull their own weight and contribute towards the group’s success, which Azmy is very clear about. “Some of the divisions are doing very well, and some are struggling. So the ones that are doing well, we’re very happy with our support team. The ones that are struggling, we’re reviewing their operations and making the necessary adjustments where needed,” he states. “I believe that management is key. There are two factors [that can affect business]. Markets – there’s only so much you can do if you’re in a market and it’s very competitive, but at the same time, management is key, at least when it comes to maintaining market position so that you don’t fare worse in the market. In fact, you’ll fare slightly better, even if you’re bound by that market range, if you have good management. “In companies where we’ve had spectacular management, we’ve had better than expected market results. In companies where we’ve had acceptable management, we’ve achieved market results. And in companies where we’ve had dismal management, we’ve achieved below market results, so those are the ones we’ll obviously have to change,” he asserts. No matter how things were in the past, change is certainly coming to ASGC and its subsidiaries, and the CEO is going to be at the forefront.
Big Project ME Awards 2015
contractors to the fore Big Project ME celebrates the achievements of the GCC’s contractors at Jumeirah Emirates Towers Hotel
24 December 2015
t
he 2015 Big Project Middle East Construction and Sustainability Awards of Excellence took place on a rainy, windswept night on November 24, 2015 at the Godolphin Ballroom in Jumeriah Emirates Towers Hotel. Held in recognition of the many achievements of the regional construction industry, the black-tie gala dinner and awards were attended by more than 350 guests from across the industry. The event was kicked off by an introductory speech by Gavin Davids, editor of Big Project Middle East, welcoming the assembled dignitaries and guests. That was followed by the keynote address from His Excellency Hesham Abdulla Al Qassim, CEO of Wasl Asset Management Group, who told attendees that the night’s celebration was in recognition of the “vital role contractors play in the building of the great cities in the UAE and across the region”. “You are the unacknowledged heroes that have contributed so much towards our region’s impressive growth and development. What you do is often a thankless task, so today is your day. It is a rightful and worthy occasion for us to say to you a sincere thank you!” Al Qassim said. The awards themselves were marshalled by Beth Burrows, the hostess for the night. Spread across 15 categories, the winners were chosen by an independent panel of judges from a shortlist
Big Project ME Awards 2015
of nominees complied by the CPI Construction editorial team. As the awards were dedicated to the achievements of the contracting industry, the judging panel was made up of the leading construction consultants in the region. The panel was: Robert Jackson, director, Middle East for RICS; Andrea Scotti, director of Abu Dhabi, Burohappold Engineering; Mark Kelly, director, Middle East for Atkins; Professor Mohammed Dulaimi, professor of Project Management and Innovation at the British University in Dubai; Suhail Arfath, industry manager – Consulting Services, Middle East, Turkey and Africa, Autodesk; Theo Souris, chairman, Abu Dhabi CIOB Committee and senior project manager at Arcadis; Greg Kane, director of Operations, Middle East at WSP | Parsons Brinckerhoff; and Andrew Body, managing director, Middle East of Mouchel Consulting. The awards focused on key aspects of the construction industry, including the development and advancement of construction technology and the promotion of sustainability throughout organisations. The Gold Sponsors for the awards were FAMCO and Arcadis, while the Silver Sponsor was Bee’ah. The category sponsors were Autodesk, CCS, Coins Global, Hill International, Kone, WSP | Parsons Brinckerhoff and ASTA Powerproject. The supporting partners for the event were Cavendish Maxwell, Charted Institute of Building (CIOB), Dubai Economic Council, Department of Tourism and Commerce Marketing, Jones Lang LaSalle, RICS and The Big 5.
December 2015 25
Big Project ME Awards 2015
Excellence in Construction Technology Nominees: Brookfield Multiplex Royal City Contracting Unipods Winner: Unipods Ras Al Khaimah-based Unipods was presented with this year’s Excellence in Construction Technology award in recognition for the work it has carried out over the last year. As one of the GCC’s leading companies in offsite construction technology, the specialist in bathroom pods and kitchen manufacturing was chosen as the winner due to the value propositions it offers its customers. Centred on three main points of quality, speed and convenience, Unipods offers full turn-key
solutions that are manufactured off-site according to client specifications and then delivered to site, ready for installation. “It’s always good to win. It took lots of perseverance and time to get this technology into the market, and now it’s paying off on all levels – business, revenues, profits and awards,” said Philippe Akl, president of Unipods. “The year has been a good one for us, and 2016 is looking great as well, so we’re happy with how things are going.” “We’re going to keep on pushing forwards to achieve our vision. We want to change the way construction is done in this region by taking the process from site to off-site. This is what we’re trying to do, and hopefully it will happen.”
Leading the change Unipods aims to change the way construction is done in the region, by taking the process from site to off-site.
Health and Safety Leader of the Year Nominees: Al Futtaim Carillion ALEC Xtramix Group of Companies Winner: ALEC
challenging times With most of ALEC’s projects at a critical mass stage in 2016, the HSE team will have its hands full.
26 December 2015
The Health and Safety Leader of the Year award recognises a firm that has implemented health and safety initiatives across the board – from construction sites to corporate campaigns for the entire workforce. This was a competitive category for the judges to decide on, with all candidates showing a strong commitment to HSE. However, the judges ultimately decided on ALEC on the basis of its comprehensive approach, built around its Safety Cadet Programme. Denis Green, Operations Support manager at ALEC, told Big
Project Me that the award was recognition for years of dedicated work from his team. “In terms of health and safety, we’ve had a fantastic year. We’ve had no fatalities, very few serious injuries as well, and we’ve even started getting quite a few innovations in with the younger people that are new to the business and promoting positive health and safety culture.” However, Green added that he was not expecting any resting on laurels, as he laid out the challenges facing them over the coming year. “I think 2016 is going to be a challenging year. Most of our projects are at a critical mass stage, where they’ve got multiple contractors and sub-contractors working on the job. It’s a diverse mix of people and it’s going to be challenging to manage that.”
Big Project ME Awards 2015
Excellence in BIM Implementation Nominees: AECOM Middle East Brookfield Multiplex TAV/CCC/Arabtec joint venture Winner: Brookfield Multiplex The Excellence in BIM Implementation award recognises companies that have taken the lead in implementing BIM on projects and throughout their organisations. The winner, Brookfield Multiplex, successfully showcased its comprehensive implementation of BIM across 15 of its projects, while also showing the ability to see the bigger picture. The judges highlighted the development of an integrated in-house BIM department and the creation of a “BIM culture” as a major factor in their decision to award the win to
this company. Pavithran KV, design and BIM director for Brookfield Multiplex, said that the contractor had been developing a dedicated BIM department for the last six or seven years. “For us, BIM is a tool for collaboration and seamless communication. Our management have been very supportive to BIM implementation and we’re probably one of the first contractors in this region to implement BIM.” “In fact, next year we have more projects coming up and we will definitely explore the maximum use of BIM for the benefit of the industry and for the benefit of the local community. Basically, we’ve been taking international technology and applying it to local business, so that as we do the work, we can also support the local community.”
supporting the local community Brookfield Multiplex aims to take international technology and apply it to local businesses.
Sustainable Government Department of the Year Winner: Bee’ah
sustainable message Bee’ah has worked tirelessly to promote sustainability in the UAE.
Sustainability and green building have become vital aspects of construction in the UAE and wider GCC region. This has been in part due to the efforts of governments in the region to mandate green building codes and push all construction stakeholders to adopt sustainable practices. One company doing so is Bee’ah, which has tirelessly worked to promote its sustainable solutions in environmental and resource management, including Integrated Waste Management, Public Cleansing, Environmental Consulting, Education and Awareness, Renewable Energy, Facilities Management and
Sustainable Development. “Winning this award is recognition that we’re on the right track. We’re one of the fastest growing companies in this sector,” said Khaled Al Huraimel, CEO of Bee’ah. “In addition, we’re one of the largest waste and environmental management companies in the region. We’ve won many awards locally and internationally, and we’re one of the first fully integrated waste management companies in the Middle East.” “The year has gone very well for us, we’ve expanded and opened an office in Saudi Arabia, and we’ve won many contracts in Dubai, while also launching many new initiatives, so I think 2016 will be a very good year for us!”
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Big Project ME Awards 2015
Sustainable Project of the Year Nominees: Brookfield Multiplex Royal City Contracting Green Energy Solutions and Sustainability Winner: Green Energy Solutions and Sustainability Green Energy Solutions and Sustainability’s nomination for the award was the region’s first landfill that can produce power. The project is a prime example of how global warming can be combated by capturing and flaring landfill gas previously being vented into the atmosphere. 1MW of electricity is being generated by the landfill in Al Qusais, used to power on-site equipment and the electrical needs of the site and its offices. This
has resulted in a dramatic drop in the amount of diesel used. “Sustainability and renewable energy is important to me. Landfills need to be de-gassed and Al Qusais landfill is a large landfill in Dubai, and we’ve been able to make it more sustainable, produce electricity from the landfill gas and hopefully reach the next stage in the near future, where we can produce electricity that would be connected to the grid,” said Anita Nouri, business development director and partner at GESS. “It has been a difficult year for us because it’s a renewable energy project and we wanted to always be sustainable and be able to produce electricity and connect to the grid. The difficulty has been finding a way to reach that legislation that will enable us to do that,” Nouri added.
next stage Anita Nouri says that GESS aims to produce electricity that would be connected to the grid.
Sustainable Initiative of the Year Nominees: Al Futtaim Carillion Brookfield Multiplex Consolidated Contractors Company Winner: Brookfield Multiplex
Beyond green Brookfield Multiplex won over the judges because it looked to implement a collaborative effort to reduce CO 2 emissions.
28 December 2015
The Sustainable Initiative of the Year recognises the efforts taken by a contractor to ensure that that their organisation and projects embrace the highest principals of sustainability and green building. These initiatives serve as an example to the rest of the construction industry and the nominees’ project partners. The judges chose Brookfield Multiplex because it demonstrates the ability to look beyond just sustainability ratings and green building codes, implementing a
genuinely collaborative initiative that looked to reduce its CO2 and sulphur emissions, while reducing its energy spend across everything from transport buses to plants and equipment on-site. “I’m really pleased. We worked really hard to achieve this,” said Stephen Smith, sustainability manager at Brookfield Multiplex. “It’s taken us a long time. It took about a year to study [the scheme] and figure out if it was going to work. Luckily it did, and it’s been a very active year really, the market has been busy again, so that’s nice. In terms of this initiative, we’re going to be rolling this across the entire UAE and potentially across the region. We’re also looking to expand into other technologies,” Smith added, speaking on the sidelines of the awards.
Big Project ME Awards 2015
Developer of the Year Nominees: Al Mouj Muscat Consortium SKAI Holdings Wasl Asset Management Group Winner: Wasl Asset Management Group This award celebrates developers who have shown considerable vision and foresight to turn their projects into landmarks and benchmarks for the region. Wasl Asset Management Group was established in 2007 by the Dubai Real Estate Corporation. Since then it has grown into one of the largest real estate development and management companies in Dubai, operating across a wide variety of sectors through its extensive portfolio of real estate assets.
“It’s such a pleasure to receive this award. We’ve come a long way from when we started. We’ve done a lot of projects in Dubai, and I think we’ve shared our projects with the government of Dubai in building this city and making it one of the most prominent in the world,” said Hesham Al Qassim, CEO of Wasl Asset Management Group. “Every year has been a successful year, starting right from 2007 till now. We always plan five years ahead for the company, and we’ll never stop developing. 2016 has a lot of projects in the pipeline for us in three verticals. Hospitality: we currently have more than 5,000 rooms, and we’re going to add 5,000 more by 2019. Real estate: we currently have 35,000 units under our management, and we’re going to add 14,000 units by 2019.”
Project pipeline Wasl Asset Management Group plans to add 5,000 hotel rooms and 14,000 residential units to its pipeline by 2019.
Specialist Contractor of the Year Nominees: ALEC Fit-Out Eversendai Engineering Stretch Ceilings Winner: Eversendai Engineering
Know-how and experience Eversendai’s experience on huge, complex projects put them in pole position to win the award.
This award celebrates the technical excellence and capabilities of subcontractors, who demonstrated their skills and knowledge to the judges through their nominations. Eversendai Engineering won praise from the judges for its professionalism, capabilities and commitment on its projects. What also set it apart was its know-how and experience on huge, complex projects from across the world. “We feel fantastic for having won this award,” said R Damodharan, general manager
of Eversendai Engineering. “I think from the moment we knew our name was on the shortlist, we were thrilled!” “The year has been packed for us, and we’ve had a huge amount of workload. Only recently, we completed about 90% of the Abu Dhabi Airport project. “We’re involved in landmark projects and we specialise in high-rise towers, bridges, stadiums, shopping malls and oil & gas projects, so we’re very proud to receive this award,” said Damodharan on the sidelines of the Big Project ME Construction and Sustainability Awards of Excellence 2015. “We’re already packed with orders for 2016, right up to June next year. From the looks of it, we’ll be packed even in 2017!”
December 2015 29
Big Project ME Awards 2015
Contractor’s Consultant of the Year Nominees: Arcadis Atkins Middle East WSP | Parsons Brinckerhoff Winner: WSP | Parsons Brinckherhoff Chosen by the editorial team at Big Project Me, the Contractor’s Consultant of the Year award is given to a consultant for its contributions over the year to contractors and projects. WSP | Parsons Brinckerhoff has spent the year working on some of the most high-profile projects in the region, while balancing the challenges of integration. “Just hearing the description of what we’ve done and why we won the award is quite a good reminder to ourselves as to why we won the
award,” said Gurminder Sagoo, business development director at WSP | Parsons Brinckherhoff. “It’s a good feeling to hear that we had a Guinness World Record this year, and that we’re working on projects that people can see while they’re sunbathing on the beach. It just shows the diversity of the organisation and it’s a really good feeling to be part of a company like WSP.” “It’s been an interesting and challenging year. We’ve been balancing off project delivery with integration because obviously we’ve been integrating two businesses together. “We’ve been trying to keep an eye on both things, and that’s had its challenges, but our focus has always been to maintain good project delivery,” Sagoo added.
Diversity is key WSP | Parsons Brinckerhoff’s diversified portfolio helped it win the award.
Young Construction Professional of the Year Nominees: Elizabeth Peters from AECOM Middle East Farah Mudhefer from L+B Design Group | EDGE Muhammad Sultan Al Salmy from Hoehler + Partners Winner: Elizabeth Peters from AECOM Middle East
striding forwards Elizabeth Peters says big steps are being made in integrating technology into AECOM’s business.
30 December 2015
Elizabeth Peters is a construction professional who exemplifies the qualities the judges were looking for. She has amassed a formidable array of achievements since coming to the Middle East in 2011. As a qualified structural engineer, she now leads a team of BIM, GIS and immersive technology professionals at AECOM Middle
East and works with the world’s leading project delivery teams. “It’s a fantastic acknowledgement, and it’s very gratifying to have my work recognised,” she told Big Project Me at the awards. “There’s a lot of major projects coming up, especially surrounding the Expo 2020, that I’m hoping our company gets a chance to work on. There’s a lot of good stuff still coming up in 2016, and I’m looking forward to working on it.” “This year has been good, both for the company and also for the work that I’m doing – specifically in integrating technology into our business. We’ve made a lot of strides, there’s been a lot of support, and it’s quite nice because our clients are recognising that.”
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Big Project ME Awards 2015
Big Project ME Woman of the Year Winner: Donna Sultan, CEO of KEO International Consultants Big Project Me gave Donna Sultan the magazine’s first ever Woman of the Year Award in recognition of her many achievements over nearly four decades in the region. Having first joined KEO International Consultants in 1982 as a management consultant, Sultan was made CEO in 1991 and has led the company towards the top of the regional consultancy industry. “There’s this beautiful song called ‘The Wind Beneath My Wings’ and I was thinking about that today, that if this award happens, to what do I owe it to. I realised that I owe it to all the wonderful people that are part of the firm, my family and the great mentors that I’ve had. This award, to me,
is really a representation of all their achievements and support. “Overall, we’ve seen growth for us in 2015 in the markets that we’ve chosen, but I can see as we look towards the future that we’ll have to be quite cautious about our planning and our strategies to ensure that we can be sustainable,” she added. “I think 2016 will still be okay, because I think there are a lot of projects, budgets and commitments due to various developments in Qatar and the UAE that will go ahead. We’re also a part of these major projects like Expo 2020 and Qatar 2022, so I don’t think we’re going to see any difference to our company next year, but I think it’s going to take two or three years, when the backlog of projects starts to change, that you’re going to be saying, ‘Okay, what’s the horizon looking like?’”
team effort Donna Sultan says her success is down to the people that are part of her firm and team.
Construction CEO of the Year Nominees: Kez Taylor, CEO of ALEC Mohandas Saini, CEO of Shapoorji Pallonji International Yu Tao, CEO of China State Construction Engineering Corporation Middle East Winner: Kez Taylor, CEO of ALEC
Working together Kez Taylor says that one of ALEC’s strengths is their ability to work well together.
32 December 2015
The Construction CEO of the Year Award highlights leaders that have set new boundaries for their companies and provided a calming hand on the tiller. Having arrived in the UAE in 2001 to establish a business in partnership with a local partner, Kez Taylor has seen annual turnover go from zero dirhams to $1 billion last year. With a total staff roster in excess of 12,000 people, the winner of this category has seen his
company become one of the most trusted and recognised names in the construction industry, with a strong reputation throughout the GCC. “We’ve all been given amazing opportunities working in this part of the world. There’s great leadership in the UAE, and in Dubai. All of the people that have come here, I think we’re all very fortunate to be a part of it, a lot of it is being in this environment,” he said. “It’s been a good year for us, we’ve got a strong order book and we’ve got fantastic people, we’ve got amazing directors within our business, and I think one of our strengths is that we work well together, and by working well together, it’s actually enjoyable. We’ve still got a good order book through to 2016, and hopefully in 2017 we’ll still be going strong.”
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Big Project ME Awards 2015
Infrastructure Contractor of the Year Nominees: TAV Construction Group Samsung C&T Engineering and Construction Group Six Construct Winner: Samsung C&T Engineering and Construction Group Samsung C&T Engineering and Construction Group has worked on some of the most complex infrastructure projects in the GCC. Having established a stellar reputation for its commitment to HSE, quality and collaboration, the judges were all in agreement that this contractor has set a very high benchmark for itself and its competitors throughout the region. “We’re very excited to have won and we’re also very humbled
by it. It’s great that our hard work has been recognised in this way by the judges, and it’s wonderful for us as a leadership team, but it’s especially wonderful for our staff and for our partners who have worked so hard during the year,” said Ross McKenzie, head of strategy and planning, MENA. “I hope this is a sign of more success in 2016.” ‘It’s been a big year for us, and we’ve been working very hard on a lot of our projects. We’re working on the largest combined power plant in Saudi Arabia at the moment, and we’re working on the only nuclear power plant in the region as well. We’re also working on two of the biggest metro projects in Doha and Riyadh, and we’ve just finished up Abu Dhabi’s sewage services company’s STEP programme. We’re now focusing on executing projects.”
sign of success The award was a sign of the hard work put in by Samsung C&T’s staff and partners over the course of the year.
General Contractor of the Year Nominees: ALEC Al Futtaim Carillion Al Shafar General Contracting Brookfield Multiplex Winner: Brookfield Multiplex
Busy time ahead Brookfield Multiplex has five major projects finishing during 2016.
34 December 2015
This award goes to contractors working on iconic and major projects throughout the GCC. Brookfield Multiplex won the award due to its focus on sustainable growth, safety and innovation. Having been in the Middle East for close to two decades, this contractor has been involved in the construction of iconic landmarks in Abu Dhabi, Dubai and Qatar. With over 1,300 staff and 15 projects in operation in 2015, this year’s winner has demonstrated
strong leadership across the board, having been accepted onto the Board of Emirates Green Building Council as well. “It’s a bit of a surprise, but it’s fantastic!” said Marcus Truscott, managing director of Brookfield Multiplex. “It’s been a good year for us and it’s been pretty busy. We’ve had a lot of operational challenges, but we’ve overcome them and it’s been fantastic.” “We’ve got 15 projects going on right now, so it’s been quite hectic. We’ve got quite a few finishing for the first and second quarter of 2016,” Truscott said. “We’ve got a couple of projects that we’ve been speaking to clients about at the moment, and we’ve got about four or five major projects finishing during 2016, so we’ve got some challenges ahead!”
Big Project ME Awards 2015
Project of the Year Nominees: Central Bank of Kuwait Headquarters by China State Construction Engineering Corporation Middle East Mall of the Emirates Expansion by Khansaheb Midfield Terminal Building, Abu Dhabi Airport by Arabtec/ CCC/TAV joint venture Winner: Central Bank of Kuwait Headquarters by CSCECME The Central Bank of Kuwait Headquarters by CSCECME is a project that reflects its status as a symbol of the country’s economic power and contribution to the region. With a value of $406 million, the project covers 160,000sqm in gross building area and rises to a height of 240m.
Designed by HOK International, the building’s design is a reflection of the culture of the city, whose skyline it dominates. In addition, it incorporates some of the latest and most advanced technologies to reduce energy consumption and increase its sustainable value. “I think it’s a pleasant surprise to have won this award, and it took us many years to complete something with such kind of quality. It’s a pride for China State Construction,” said Yu Tao, CEO and president of China State Construction Engineering Corporation Middle East. “2015 was not a very exciting year generally for the construction industry and the property market, however, we’ve done extraordinarily well. We’ve doubled our operation size, increased our management resources and our workforce.”
Quality construction The Central Bank of Kuwait HQ project took China State many years to complete and reflected the high levels of care and quality invested in it.
Thanks to our judges
Robert Jackson Director, Middle East RICS
Mark Kelly Director, Middle East Atkins
Andrea Scotti Director BuroHappold Engineering
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Site visit
38 December 2015
Site visit
first in Class Big Project ME goes on-site at the Alef Residences, the first high-end luxury residential project being developed by Al Sharq Investment. Gavin Davids reports
December 2015 39
Site visit
D
ubai has always been a city enamoured with the concept of exclusive luxury. Having styled itself as one of the most high-end travel destinations in the world, the city has consistently pushed forward the idea that it offers residents and visitors the best of everything – hotels, nightlife, experiences or even just lifestyles. The extravagant projects that have sprung up over the last decade or so pay testament to that desire to be known as one of the most exclusive destinations on the planet, with several highend, luxury hotels leading the way, while real estate developers have launched residential projects promising spectacularly exclusive living along private golf courses, beaches and lakes. However, while these residential projects offer luxurious surroundings, they tend to be self-contained, independent units – villas, mansions or bungalows – that don’t really cater to the needs of people who, while desiring the same levels of luxury, prefer the apartment style of living. Of course, a number of residential towers in Dubai offer high-end living, with penthouses that provide gorgeous views and total privacy, but to get to them residents have to use the same facilities as the rest of the building, which is hardly ideal for them. This is why Al Sharq Investment, a joint venture between Qatar’s Al Mana Global 40 December 2015
High standards The Alef Residences will be fitted out with the highest quality materials, the developer says.
and Saudi Arabia’s Al Sharq Group, has launched the Alef Residences, a project they bill as a response to a “distinct gap in the Dubai residential market”. “[There is] a need for quality on another level, leading to residences made from only the finest materials, delivering spacious and comfortable apartment living beyond the current industry expectations,” the company says in a statement to Big Project ME before an exclusive tour of the project site on the Palm Jumeirah. Taking its inspiration from traditional Arabian elements such as the wadi and the bastakiya, the development is the first under the Alef brand, which Al Sharq Investment hopes will spread from Dubai into the wider Middle East, and then globally. Currently under construction on a 46,840sqm plot of land on the Crescent of the Palm
Jumeirah, the project is being built adjacent to the also-under-construction W Dubai Hotel, which will service the Alef Residences once both are complete. Scheduled for handover in the second quarter of 2017, the developer of the $544.5 million Alef Residences hopes to target high-net-worth individuals with a choice of two-, three- and fourbedroom luxury homes, ranging from 446sqm to 1,393.5sqm. In total, there will be 104 homes, all with distinct floor plans, across eight mansions featuring their own dedicated lobbies and private elevators. There will be two apartments per floor, with a total of seven floors per building. In addition, there will be two single penthouses and three duplex penthouses on the top floors, with the top two floors of the building designed with just shell and core so that
Site visit
“We’re looking at being on target to complete by March 2017. This is what we’re pushing for. The announced date is Q2 2017, but internally we think we can do it by March, we think that’s very much achievable”
owners can customise their apartments as they see fit, using the developer’s interior design partners or their own. “A lot of the vision for the project came from the shareholders, to be honest with you,” says Matthew Wade, an executive director at Al Sharq Investment, who accompanied Big Project ME on the tour. “It started with their vision, and we obviously had to have the substance behind it. We knew that there was a demand, but there was no supply as well. It started from there, and we’ve been very involved in communicating the shareholder’s vision to the contractor.” The architect and consultant tasked with bringing the shareholder’s vision to life is RMJM, an architecture and master planning firm. It has been appointed lead consultant for the project, while Mace will handle
project management. The main contractor for the project will be Al Futtaim Carillion, and while Wade is more than confident in their ability to carry out the job and bring the project to a successful conclusion, he insists that as the developer, Al Sharq Investment will continue to be involved on a day-to-day basis. “We’re not a developer that’s going to be walking away. We want to stay involved,” he says. “But from a construction point of view, from a building point of view, the buildings are coming together. From a procurement point of view, they’re packaged separately, but it all comes under Al Futtaim Carillion, which was the strategy, to have one main contractor. You’re dealing with AFC, one of the most reputable contractors in the region, so you know you’re really getting a good project.” Once on-site, we are joined in good hands The residential project is being built by Al Futtaim Carillion.
by Jean Paul Zoghbi, COO of Al Sharq Investment, who reveals that about 30% of the project has been completed, with a large portion of the concrete structures done. “We’re looking at being on target to complete by March 2017. This is what we’re pushing for. The announced date is Q2 2017, but internally we think we can do it by March, we think that’s very much achievable. We have the main fit-out contractor on board, the MEP contractor is already on board, all the main subcontractors are already on board,” Zoghbi asserts. “A lot of the first fix, second fix and MEP in the basements and first floor [is done]. If you walk along the corridors, you’ll see a lot of ducting and piping, a lot of the MEP work is ongoing. In addition, a lot of off-site work is being done in terms of procurement. Almost 80% of the materials needed for the MEP has been approved.” Of course, to achieve the stated target date, the contractor will need the resources to complete the job. To that end, there are currently 2,800 labourers on-site and there will be nearly 4,000 at peak construction, Zoghbi says. “It’s a 24-hour construction cycle, and there are two shifts. The contractor deals with the logistics, with the subcontractors. He coordinates with them the areas that they have to put down materials, and all the movement of the materials, as well as the usage of the cranes. “That’s all the responsibility of the contractor, and Mace will work closely with them to make sure that the subcontractors are getting what they need, in terms of access and materials,” he explains further. Wade chimes in to add that the strategy agreed with AFC is December 2015 41
Site visit
that the project will be treated as a whole, rather than two separate buildings, and the delivery date agreed upon is for both. “It’s going to be an integrated development, and the strategy with AFC is that we don’t see it as two separate buildings, we see it as one completion date and one contractor, and that they will come up together.” Given the number of people on-site and the long hours they’ll be working, health and safety will be crucial. Zoghbi says that AFC will not tolerate anything less than the best on the project, and this has been clearly communicated to all stakeholders. “AFC are a grade A contractor and when it comes to safety, they’re excellent. They really put a high emphasis on safety, and so far we’ve not had any major injuries or fatalities. The consultant also has a health and safety manager and staff on-site. They work with the contractor to make sure [that HSE is followed]. We also have people on-site [representing the developer]. as for us, HSE is a top priority.” Returning to the design of the
buildings and the apartments themselves, Wade tells Big Project ME that a lot of effort has gone into ensuring that residents feel a sense of privacy and exclusivity, right from the time they enter the development. “We’ve really tailored it to the expectations of the clientele. We’ve done a lot of research into what these high-net-worth individuals are looking for from these types of residences. You can actually come through the building, through the basement level, and the beginning of the wadi is actually on basement, but it’s designed in such a way that you don’t realise that. You’ve got the very grand front door entrance, and then you’ve got the more discreet private entrance at the back, where you can come through and come up to your apartment.” As the apartments are quite large, the designers have allowed for them to be customised according to the needs of the owners, as mentioned previously. While this poses certain challenges for the core services of the buildings, the project
LISt of contRActoRS 1. al futtaim Carillion: Main Contractor 2. Drake & scull: MEP Contractor 3. DEPa interiors: Fit-Out Contractor 4. terra Verde: Landscaping Contractor 5. reem Emirates aluminum: Façade Contractor – Hotel 6. technical Glass & aluminum Co: Façade Contractor – Residences 7. Emirates Watertec Co: Pools & Water Features 8. Elenco:
Exclusive surroundings The Alef Residences will be surrounded by landscaped gardens and the largest private residential beachfront in Dubai.
42 December 2015
Kitchens & Laundry
team has come up with some interesting solutions, Wade says. “Because the space is so large, and we’re taking a significant amount of area, we’ve actually left it quite open. What we’ve done is zone MEP, zone HVAC, lighting and all these kinds of things. We’ve absolutely thought about that, because the clientele will be different nationalities and they’ll have different needs and wants. We’ve in-built these concertina type doors that can actually barrier off [sections of the apartment]. And if you want to do that permanently, you can, as all of the areas are very open-plan.” Finally, the Alef Residences will be surrounded by a tropical landscaped garden and a 475m beach, the largest private residential beachfront location in Dubai. The developers aim for the beachfront promenade to become a recreational area, and have designed cabanas and water sport facilities to be installed there. In addition, a private members club – Club 104 – will be available only to residents and their guests.
Top ten
Big Project ME takes a look at ten of the biggest mixeduse projects currently underway across the region
Top 10 GCC mixeduse projeCTs 44 December 2015
Top ten
Kingdom Tower and City, Saudi Arabia Project value: $21 billion Soon to outrank Dubai’s Burj Khalifa as the world’s tallest building is the under-construction Kingdom Tower in Saudi Arabia. Crossing the 1km mark, the Kingdom Tower is being developed by the Jeddah Economic Company (JEC). JEC was established in 2009 to develop the 5.3 million sqm Kingdom City, of which the tower will be the centrepiece. Slated for completion in 2018, Kingdom Tower is being built at a cost of $1.2 billion and has the backing of Saudi billionaire Prince Alwaleed bin Talal. It will feature a 200-key Four Seasons Hotel, 121 Four Seasons serviced apartments, 61 residential floors, 318 apartments and the world’s highest observatory space. The entire Kingdom City project on the Red Sea coast includes residential and commercial units, offices, entertainment and tourist facilities, and water sports activities. The overall project, comprising Tower and City, is expected to house 200,000 residents at the end of the first two phases.
December 2015 45
Top ten
Mohammed Bin Rashid City – District One, UAE Project value: $5.7 billion In January last year, Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum inaugurated District One at the ambitious MBR City, a mixed-use, leisure and sports development spanning over 54 million square feet of freehold land a few kilometres away from the Burj Khalifa. District One alone stretches across four million square feet of land. Jointly developed by Meydan
Diyar Al Muharraq Project value: $3.2 billion Diyar Al Muharraq is a masterplanned city in Bahrain offering residential and commercial properties, hotels, schools and hospitals. The development’s offerings for local and foreign
46 December 2015
Group and renowned Indian developer Sobha Group, District One will have 1,500 luxury villas as well as leisure and retail attraction points. The villas will be delivered in four phases before the Expo 2020. The development, launched in 2013, is the first development in the MBR City mega-project. Set for completion by 2018-19, District One will feature open and green space of city parkland, waterways, woodlands and a water park. It will also be home to the world’s largest crystal lagoon.
investors include commercial villa and showroom plots, residential building plots, light industry/ logistics and warehousing plots. “This is an exciting time for investors to participate in Bahrain’s flexible investment environment. Diyar Al Muharraq is perfectly placed to offer both commercial
Sharjah Waterfront City Project value: $5.4 billion Sharjah Waterfront City is an AED20 billion ($5.4 billion) project being developed by Sharjah Oasis Real Estate Development. The mixed-use project, which will comprise 10 islands, is spread across 36km of coastline, with a total area of 60 million sq ft. It was officially launched at this year’s Cityscape Global in September. Sharjah Waterfront City’s first two phases – comprising hospitality, commercial and
and residential opportunities for investors seeking to be part of Bahrain’s thriving economy,” says Abdul Hakeem Al Khayat, chairman of Diyar Al Muharraq. The Diyar Al Muharraq development has been built in line with a set of environmental strategies and marine habitat
residential elements – will be built at a total cost of AED9.35 billion ($2.5 billion). One of the highlights of the development will be a 1.5 million sq ft Crystal Lagoon water theme park. The developer recently inked an agreement with Shaza Hotels, a Kempinski affiliate, for the Shaza – Sharjah Waterfront City, a fivestar hotel consisting of 300 rooms and 350 serviced apartments. An agreement has also been signed for The Dusit – Sharjah Waterfront City, featuring 200 hotel rooms and 200 serviced residences.
enhancement schemes that encourage ecological regeneration. The project will soon reach a milestone in its development with the upcoming opening of the $100 million Dragon City, built on 115,000sqm of land and set to become a re-export hub for Chinese-manufactured products.
Top ten
Omagine Project, Oman Project value: $2.5 billion US-based real estate developer Omagine signed a development agreement last year with the government of Oman for the $2.5 billion Omagine project. Omagine LLC, the company’s 60%
Bluewaters Island Project value: $1.6 billion Located off the Jumeirah Beach Residence coastline, Bluewaters Island, developed by Meraas, will feature retail, residential, hospitality and entertainment zones. The reclaimed island will be home to the much anticipated Dubai Eye, a 210m Ferris wheel being built at a cost of AED1 billion ($272 million). The Dubai Eye will offer views of the coastline and landmarks such as the Burj Al Arab and Burj Khalifa.
owned subsidiary, will design, develop, own and operate the tourism and real estate project. The Omagine project is set to include cultural, entertainment and residential components. The development will house a theme park containing seven pearl-shaped buildings, each
approximately 60 feet in diameter; exhibition buildings; a boardwalk; an open air amphitheatre and stage; and open green areas. In addition, the project will feature a canal and an enclosed harbour and marina area, alongside retail shops, restaurants and hotels.
Bluewaters Island will also host a hospitality and residential options, along with a souk, encircled by a promenade. It is anticipated to attract at least three million visitors a year. In May this year, Dubai’s RTA awarded a contract to build a bridge linking the island to the Sheikh Zayed Road. A footbridge will also be constructed to provide access from the JBR waterfront, along with a cable car service that will shuttle visitors to and from the massive development.
Place Vendome, Qatar Project value: $1.25 billion Located in Qatar Entertainment City in Lusail, Place Vendome is a mixed-use development that will comprise hospitality, retail and entertainment elements. The 800,000sqm project will host two five-star hotels, up to 400 different retail outlets and a central entertainment component. Place Vendome, 11km from the centre of Doha, is developed by United Developers and slated for
Approximately 2,000 residences will also be developed for sale. The project will be developed on 1 million sqm (245 acres) of beachfront land facing the Gulf of Oman, just west of the capital city of Muscat and approximately six miles from Muscat International Airport.
completion in the third quarter of 2017. The Parisian-inspired development will feature a canal running through it, creating an open plaza experience with cafés and restaurants overlooking the water. The project is designed by AEB, and the main contractor is Qatar-based Construction and Reconstruction Engineering Co (CRC). Project management services are provided by Salfo, while MZ&P has been appointed structural consultant.
December 2015 47
Top ten
Al Khiran Development, Kuwait Project value: $700 million In March this year, a Kuwaiti developer launched the $700 million Al Khiran Development, a mixed-use scheme at the heart
Saraya Bandar Jissah Project value: $600 million Saraya Bandar Jissah is a $600 million tourism development being built on the outskirts of Muscat, surrounded by the Hajar Mountains. Construction work on the project, which is being developed in partnership between Omran and Saraya Oman, is making rapid progress, it was recently announced. The luxury development will comprise five residential zones, a recreational facility, staff
48 December 2015
of the Sabah Al Ahmed Sea City. Spread across 350,000sqm of waterfront, the resort-style project will include Kuwait’s first high-end outlet mall, two high-rise residential towers, a furnished apartments tower, a marina housing over 900 boats and a five-star resort-style hotel.
accommodation and two fivestar hotels to be operated by the Dubai-based Jumeirah Group. Within a site area spanning 2.2 sq km, Saraya Bandar Jissah will feature 398 residential units in five zones: Zaha, Nameer, Wajd, Na’eem and Safa. More than 2,500 workers are currently on-site at the project, from firms including Carillion Alawi, Leighton Middle East, Towell Construction, Ghantoot Transportation and General Contracting (GTGC), Bumi, Drake & Scull and Wolf.
The 75,000sqm outlet mall, designed by RTKL, will house a mix of luxury and premium brands. The development will also be home to the Al Khiran Park. “Kuwait is recognised as a country that has one of the world’s highest per capita incomes. It also remains one of
Riyadh Walk, Saudi Arabia Project value: $320 million The $320 million Riyadh Walk development will be developed jointly between Raj Real Estate Company, a subsidiary of Al Rajhi United, and Saudi-based Baseel Properties, which specialises in real estate projects across various sectors. Covering an area of 137,000sqm and with a 650m façade, the project will be located in the Al Nakheel neighbourhood in northern Riyadh, 3km west of
the most underserviced markets in the GCC in terms of quality retail space,” says Mohammed Jassim Khalid Al Marzouq, chairman of Tamdeen Group. “This is where Al Khiran will offer value, not just in terms of shopping, but an overall customer experience.”
the King Abdullah Financial City. It will include a mall, boutique hotel and leisure facilities, as well as offices and cultural areas. “This project is a major step toward upgrading the commercial mixed-use projects in the kingdom,” says Ahmed bin Abdullah Bakarman, CEO of Baseel Properties Company. “Riyadh Walk is the latest innovation in the Saudi real estate sector, and we have already begun working on the site and planning to begin construction in January 2016,” he added.
Comment
John Hague
Conquering Complexity effiCiently
John Hague, SVP and MD, MENA at AspenTech, on how software solutions are helping to optimise oil & gas production The Middle East is a major player in global oil markets in terms of production and available spare capacity. It holds over 48% of global oil reserves and 40% of global gas reserves. However, the refining and petrochemical industry in the Middle East has reached a turning point due to global changes in feedstock availability and price, which have created a more challenging market. Middle East companies need to excel in their pursuit of commercial and operating excellence in order to remain competitive and preserve global market share. Many Middle East projects are in the process of being constructed and commissioned. This presents growing pains to regional operators, as these new operations 50 December 2015
supplement the current operating facilities. Each new operational process must be designed to be both safe and reliable. In addition, the region suffers from a shortage of skilled and experienced indigenous engineers across all areas of the industry. Feedstock and product prices have fluctuated dramatically in recent times and have consequently affected supply and demand. With global competition and regional imbalances, the need to implement more stringent safety and environmental regulations is equally essential for companies to mitigate risk against unplanned events. The potential effect of this on Middle East producers is significant, as margins are reduced and new production capacity shifts to embrace new
feedstock sources. The US shale gas / shale oil industry is already putting tremendous pressure on operators across the markets, as they are now caught between cheap chemical imports from the US and the Middle East. Therefore, in order to be a highquality, low-cost manufacturer, the region not only needs more indigenous expertise, but also cutting-edge technologies to help bridge the skills gap and address operational challenges. Best practice In today’s market, it is vital to squeeze as much value as possible from the operation where costs and risks are high. In order to deliver this, companies need to adopt best practice using integrated software to achieve
superior cost results, including the following key disciplines: • Commercial excellence: The Middle East is focused on the development of mega-refineries and large integrated petrochemical plants that are world-class in both size and complexity. Companies need to work hard to establish what to produce, how or when to ramp up production, where to sell products, and how to distribute and quickly determine the return on investment. By standardising optimisation software, companies will improve margins, increase yields, meet customer demand and gain competitive advantage. • Operational excellence: To survive in this fast-changing environment, companies need to be leaner, more efficient and able to adapt quickly to customer
Best practices Companies need to adopt best practices to achieve superior cost results.
needs. To be exemplary in terms of operational excellence, companies are implementing flexible and integrated software technology to bridge the gap between strategic planning and scheduling. Using integrated software to avoid silo practices will help empower engineers to make better decisions when they come to address feedstock planning, operational efficiency, energy optimisation and safety analysis. The use of Advanced Process Control achieves greater control over plant to meet operational and energy efficiency targets, as well as improving product quality. • CAPEX efficiency: Together with better analysis, the ability to easily evaluate capital investment projects faster early in the design process, along with better analysis,
helps engineers understand the economic implications of decisions. Crucially, project scalability, improved workflow and the ability to achieve better predictability and accuracy during FEED reduces total project lifecycle. With better cost tradeoffs in making incremental capital investment decisions, companies will become more profitable. • Compliance and sustainability: Efficient design of facilities is vital to achieving outstanding environmental, health and safety (E&HS) performance, reducing operational risk and preventing injury to staff. Excellence in process safety starts by ensuring facilities are designed, operated and maintained in a way that minimises the potential for process safety incidents. Risk is also
Comment
managed by quickly identifying hazards, assessing consequences and implementing prevention and mitigation measures. • Skills development: The Middle East is focused on addressing a shortage of skilled and experienced indigenous chemical engineers. With integrated software, new and occasional users become proficient faster and experienced users can do more. The industry needs a combination of these elements to respond effectively to the commercial and operational issues affecting their business. Integrated automated software, in particular, delivers accurate real-time information and makes operational decision-making significantly more efficient with fewer resources and time to complete tasks. Sustainability is therefore enhanced through more efficient use of energy and less raw material wastage, while quality is improved. Cutting-edge software streamlines workflow and manages orders more effectively to be on time and measurably meet customer satisfaction requirements. Manufacturers who standardise on optimisation software across the enterprise will minimise lead times, maximise asset utilisation, speed up time-to-market, increase production visibility and strengthen competitiveness. Many refineries have adopted AspenTech’s aspenONE software suite to optimise process manufacturing for energy, chemicals, engineering and construction, and other industries that manufacture products from a chemical process. With integrated software solutions, process manufacturers can implement best practices for optimising their engineering, manufacturing and supply chain operations. With the aspenONE Licensing Model, companies have access to all products in the aspenONE
suite and can use software tools on a ‘check out – check in’ basis, and track usage while adjusting when and where the software is used, based on changing requirements. As priorities change, this flexible software model transforms the way companies conduct business. Whether the software is installed on-premise or in the cloud, customers have access to the full range of innovative software applications to meet project demands. Breakthrough innovations in software allow new and occasional users to become proficient faster, bringing the power of optimisation to more people in engineering, operations, planning and scheduling across the enterprise. The model for success The Middle East oil & gas sector and supporting industries like engineering, design and construction are deploying a growing number of megasites to improve regional infrastructure. This trend covers not only refineries, but also large integrated petrochemical plants. Furthermore, the Middle East is continuing to build refineries that are world-class in both size and complexity. Therefore, navigating uncertainty is essential in today’s market. Companies who thrive must be leaner, efficient and able to adapt quickly to market dynamics. To remain competitive, innovative and flexible technology will significantly improve profit margins. Better integrated planning, scheduling and execution also optimise manufacturing operations and supply chain. The avoidance of silo practices with integrated software will help empower indigenous engineers to be better decision-makers for addressing feedstock planning, operational efficiency, energy optimisation and safety analysis. December 2015 51
Event review
The Big 5 Closes wiTh a Bang 2015 edition of the show saw “millions of dollars” in deals, event organisers say
The 2015 The Big 5 show ran from 23-26 November at the Dubai World Trade Centre, and show organisers dmg events said that the number of participants at this year’s event rose by at least 6% to 85,000, based on data from last year’s recordbreaking exhibition and preregistration figures for 2015.
Among the top visitors to the event were the UAE, Saudi Arabia, Iran, India, Oman, Qatar, Kuwait, Bahrain, Egypt and Pakistan. European nations were also geared up for a big exhibition amid uncertainty in domestic markets, with Italy, Germany, Spain, Greece and the UK in the top ten exhibiting countries. Some 3,000 exhibitors brought thousands of certified construction products to The Big 5 from companies seeking to tap into the Middle East’s booming construction sector. This unique opportunity to witness some of the world’s most innovative products firsthand has contributed to the success of The Big 5 over the last few years, organisers said. New for 2015 was The Big 5 Focus hall, which had even more products, exhibitors and exciting new features, including dedicated educational
52 December 2015
theatres, prize giveaways, CPD Certificate collection and more. There were also an amazing 75 free CPD Certified workshops enabling attendees to develop their careers within their chosen fields. After Dubai was recently ranked the eleventh most attractive destination for foreign investment, one of the focuses of these workshops was how to do business in the UAE. Green building certification also featured, as the UAE maintains its position in the top ten countries for LEED-certified buildings. The Design Summit provided thought leadership for architects and interior designers, alongside a range of industry seminars and courses. The prestigious Gaia Awards, promoting green building products and materials, were also back, with the eighth edition seeing almost 300 entries this year. Additionally, exhibitors showcased their latest products and technologies with live demonstrations throughout the events. Lots of other great activities and attractions were spread across the exhibitions, including musical performances and a magician. Organisers said that “millions
Event review
of dollars of deals” were struck this year, with the likes of Polish company Techmatik signing a $2.7 million deal with Dubai’s Consent LLC for the purchase of a Techmatik SHP 5000 concrete block machine. Italian machinery company MB Crushers said that it had sold two of its crushers, with a combined value of $85,000, to a company in Saudi Arabia. Turkey had one of the largest pavilions at the event and was a key country showcasing its construction sector to thousands of attendees. The Middle East’s largest construction exhibition “acts as a great meeting point because of Dubai’s strategic location in the region, which comes between major markets in India and Europe”, said Mustafa Levent Bilgen, the Turkish ambassador to the UAE. Another major announcement at the show was the launch of five new technical printers geared towards architects, engineers and construction (AEC) professionals from US IT giant Hewlett-Packard. The printers, including the flagship HP DesignJet T830 Multifunction Printer (MFP) and the HP DesignJet T730, have been engineered to withstand tough environments and make large-format printing faster and easier from construction sites, the company said. “Even as AEC and design professionals become increasingly mobile, they prefer making edits and reviewing plans on the printed page,” said Xavier Garcia, vice president and general manager for large-format printing at HP, in a statement. “HP’s innovative new large-format printers and MFPs simplify collaboration
with next-level features and mobile printing capabilities, to meet this blended reality and print whatever and wherever AEC professionals need.” Japan’s Nippon Steel and Sumitomo Metal was another participant, presenting its decorative titanium facades to visitors. The company, which recently opened an office in Jebel Ali, Dubai, said that it was looking to work closely with architects in the region. “The material is very durable and suppresses discolouration due to aging. We are also looking at working with oilfields in the Gulf region, and hence think that The Big 5 is ideal to attract this clientele,” said Atushi Morioki, general manager of the company. Josine Heijmans, event director at The Big 5, pointed out that the event has proven to be another record-breaker for organisers and exhibitors. “With the addition of the Focus Hall this year, we saw an increase in exhibitors, taking it over the 3,000 mark for the first time. It has been a strong show with great exhibitors, fantastic sponsors and our biggest ever educational programme.” The Big 5, with its co-located shows Middle East Concrete and PMV Live, also held its largest ever free CPD-certified education programme. More than 75 workshops and seminars have been held, with more planned for the final day. Middle East Concrete and PMV Live also welcomed a record number of exhibitors, with 450 from 33 countries, organisers said. “Visitors have come in their thousands to see some exceptional exhibitors,” concluded Nathan Waugh, event director at Middle East Concrete and PMV Live.
December 2015 53
Tenders
Top tenders Matlaa local Marketing Depot project Budget $798,000,000 project number MPP2819-K territory Safat 13001, Kuwait client Kuwait National Petroleum Company (KNPC) address Imad Commercial Centre phone (+965) 2244 7477 Fax (+965) 2244 7492 / 2240 2269 Website www.knpc.com.kw Description Engineering, procurement and construction (EPC) contract to build a local marketing depot at Matlaa Status New Tender tender categories Oilfields & Refineries tender products Storage
tender products Gas Distribution, Gas Exploration and Production
of a thermal solar power and natural gas hybrid plant at Abdaliya with total capacity of 280MW period 2017 Status New Tender tender categories Power & Alternative Energy tender products Power Generation Plants, Solar Energy
al aBDaliyah integrateD Solar coMBineD cycle project Budget $3,000,000,000 project number ZPR101-K territory Shuwaikh, Kuwait client Kuwait Authority for Partnership Projects (KAPP) address Formerly Partnerships Technical Bureau, Touristic Enterprises Co Building, 2nd Floor, Al-Jahra Street phone (+965) 2496 5900 / 5902 Fax (+965) 2496 5901 Website www.ptb.gov.kw Description Build-operate-transfer (BOT) contract for the construction
coMMon SeaWater Supply Facility project Budget $13,000,000,000 project number MPP2839-IQ territory Basrah, Iraq client South Oil Company (Iraq) address South Oil Company Complex, Bab Al Zubair Area phone (+964-40) 319 310 Website www.soc-basrah.com Description Engineering, Procurement and Construction (EPC) contract to build a giant seawater treatment facility and pipelines
Status New Tender tender categories Industrial & Special Projects, Water Works tender products Water Treatment
SharM el-Sheikh airport expanSion project Budget $671,000,000 project number MPP2899-E territory Cairo 11776, Egypt client Egyptian Airports Company address Airport Road phone (+20-2) 267 7610/7613 Fax (+20-2) 418 2972 Description Carrying out expansion of an airport which will provide capacity for 10 million passengers a year, bringing the total capacity to 18 million a year Status New Tender tender categories Airport, Construction and Contracting tender products Airports Development and Management
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Y
CM
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MaSter gaS SySteM expanSion project – phaSe 2
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Budget $1,500,000,000 project number MPP1887-SA territory Dhahran 31311, Saudi Arabia client Saudi Arabian Oil Company (Saudi Aramco) phone (+966-13) 872 0115 Fax (+966-13) 873 8190 / 874 1655 Website www.saudiaramco.com Description Engineering, Procurement and Construction (EPC) contract for the second phase expansion of a Master Gas System Expansion (MGSE) project Status Current Project tender categories Gas Processing and Distribution, Oilfields and Refineries
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
54 December 2015
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Tenders
Middle East tenders UAE DuBai one toWer project Budget $75,000,000 project number WPR213-U territory Dubai, United Arab Emirates client Meydan LLC (Dubai) address Meydan Racecourse, Al Meydan Road, Nad Al Sheba phone (+971-4) 327 0000 Fax (+971-4) 327 0007 Website www.meydan.ae Description Construction of a 711-metre-high tower comprising the largest indoor ski resort and 885 apartments period 2020 Status New Tender Design consultant AE7 Consultant (Dubai) tender categories Hotels, Leisure and Entertainment, Prestige Buildings tender products High-rise Towers, Hotel Construction and Residential Buildings
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QaSar al SaraB reSort expanSion project Budget $30,000,000 project number WPR796-U territory Abu Dhabi, United Arab Emirates
client Tourism Development & Investment Company – TDIC (Abu Dhabi) address Behind Khalifa Park, Eastern Ring Road (Salam Street) phone (+971-2) 406 1400 / 800 8342 Fax (+971-2) 406 1500 email info@tdic.ae Website www.tdic.ae Description Carrying out expansion of an existing resort comprising a ground floor and an additional floor period 2017 Status New Tender Main consultant Broadway Malyan (Abu Dhabi) Mep consultant CSA (M&E) Gulf (Abu Dhabi) tender categories Construction and Contracting, Hotels
tender products Hotel Construction
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acceSS roaDS project – international city Budget $55,000,000 project number MPP2259-U territory Dubai, United Arab Emirates client Roads & Transport Authority (RTA) – Dubai address Marrakech Road phone (+971-4) 284 4444 / 290 3220 / 208 0787 / 208 0771 Fax (+971-4) 290 3380/ 206 5555 Website www.rta.ae Description Construction of access roads to serve a residential community Status New Tender
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
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Tenders
tender categories Roads, Bridges and Infrastructure tender products Roads Construction
Saudi Arabia VillaS conStruction project – ajyal reSiDential DeVelopMent (phaSe 1) Budget $510,000,000 project number MPP2470-SA territory Dhahran 31311, Saudi Arabia client Saudi Arabian Oil Company (Saudi Aramco) phone (+966-13) 872 0115 Fax (+966-13) 873 8190 / 874 1655 email international. media@aramco.com Website www.saudiaramco.com Description Construction of 955 villas, a mosque, two schools and related infrastructure works Status Current Project Main contractor Azmeel Contracting and Construction Corporation (Saudi Arabia) tender categories Construction and Contracting, Education and Training, Power and Alternative Energy, Roads, Bridges and Infrastructure, Sewerage and Drainage, Water Works tender products Educational Developments, Infrastructure, Villas Construction
Oman
address Sohar Industrial Port Area phone (+968) 2685 1000 Fax (+968) 2685 1211 email info@orpic.om Website www.orpic.om Description Construction of a major bitumen production unit featuring a pair of reactors with capacity of 516 tonnes per day each period 2017 Status Current Project Specialist consultant Porner Ingenieurgesellschaft GmbH (Austria) Main contractor McNally Bharat Engineering Company Ltd (India) tender categories Industrial & Special Projects tender products Chemical Plants
BituMen proDuction unit project – Sohar port Budget $315,000,000 project number WPR724-O territory Sohar 322, Oman client Oman Refineries & Petroleum Industries Company (ORPIC)
BoutiQue hotel project – Saraya BanDar jiSSah Budget $55,000,000 project number WPR598-O territory Madinat Al
Sultan Qaboos, Oman client Saraya Bandar Jissah (Oman) phone (+968) 2464 0000 Fax (+968) 2469 8988 email info@sarayabandarjissah.com Website www. sarayabandarjissah.com Description Construction of a fivestar hotel comprising 106 rooms period 2017 Status Current Project Main consultant WSP Middle East (Dubai) Mep consultant WSP Middle East (Dubai) Design consultant WSP Middle East (Dubai) Design consultant 2 DSA Architects International (Dubai) Main contractor Leighton Middle East LLC (Oman) Mep contractor Drake & Scull International LLC (Oman) tender categories Hotels, Construction and Contracting tender products Hotel Construction
Qatar al okar reSiDential toWer project – luSail Budget $60,000,000 project number WPR689-Q territory Lusail, Qatar client Qatari Diar Real Estate Investment Company (Qatar) address Qatari Diar Visitors Centre phone (+974) 4497 4444 Fax (+974) 4497 4333 email info@qataridiar.com Website www.qataridiar.com Description Construction of a residential building comprising a basement level, a ground floor, a mezzanine floor and 30 additional floors Status New Tender Design consultant MZ & Partners Architectural and Engineering Consultancy (Qatar) tender categories Prestige Buildings
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
58 December 2015
tender products High-rise Towers, Residential Buildings
eaSt WeSt corriDor expreSSWay project – package 2 Budget $612,000,000 project number MPP2666-Q territory Doha, Qatar client Public Works Authority – ASHGHAL (Qatar) address Al Faisal Tower, Al Corniche Street, Dafna phone (+974) 4495 0000 / 4495 1111 Fax (+974) 4495 0900 email customerservice@ ashghal.gov.qa Website www.ashghal.gov.qa Description Construction of a 10.75-kilometre-long section of East West Corridor Expressway period 2017 Status Current Project Main consultant Kellogg Brown &
Root International Inc (KBR) – Qatar Main consultant 2 Parsons International Ltd (Qatar) Main consultant 3 CH2M Hill International Ltd (Qatar) Main contractor China Harbour Engineering Arabia Company (Qatar) Specialist contractor Al Mohsen Engineering (Qatar) tender categories Public Transportation Projects, Roads, Bridges and Infrastructure tender products Bridges Construction, Roads Construction, Roadways
Bahrain re-Melt Facility project Budget $50,000,000 project number WPR722-B territory Manama, Bahrain client GARMCO (Gulf Aluminium Rolling Mill Company) – Bahrain address Sitra Industrial Area
phone (+973) 1773 1000 / 1773 4600 Fax (+973) 1773 0542 email sales@garmco.com Website www.garmco.com Description Engineering, Procurement and Construction (EPC) contract to build a re-melt facility with production capacity of 120,000 tonnes a year of aluminium slabs period 2017 Status Current Project Financial consultant Ahli United Bank BSC (Bahrain) Main contractor Fives FCB (France) tender categories Industrial and Special Projects tender products Steel Mills
Bahrain Marina MixeDuSe DeVelopMent project – phaSe 2 project number WPR800-B territory Manama, Bahrain client Amlak (Bahrain) phone (+973) 1751 6444 Fax (+973) 1751 6449 email info@amlak.bh Website www.amlak.bh Description Development of a mixed-use scheme comprising a five-star hotel and serviced apartments along with freehold apartments and waterfront villas, shopping mall, fully-integrated family entertainment and educational centre and a recreational waterfront space with dining and retail spaces period 2020 Status New Tender Design consultant Benoy Architects (UK) project Manager Bruce Shaw (Bahrain) Quantity Surveyor Haj Gulf Quantity Surveyors (Bahrain) Marine consultant AECOM (Bahrain) traffic engineering consultant Hyder Consulting Middle East Limited (Bahrain) tender categories Construction & Contracting, Hotels, Leisure & Entertainment tender products Hotel Construction, Retail Developments, Villas Construction
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
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Last word
GCC contractors still to understand what BIM brings Paul Wallett of Tekla says that contractors need to learn what they need for their own deliverables
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ontractors in the UAE are yet to understand the full potential of building information modelling (BIM), and need to “breathe a little” amid a regional construction boom, a leading expert says. With Dubai Municipality mandating BIM for large construction projects, there has been a scramble to implement the technology – but contractors need to analyse the full benefits of BIM, Paul Wallett, area business director at Tekla Middle East, tells Big Project ME on the sidelines of a construction exhibition in Dubai.
“Education is still the paramount thing that we’re doing. Contractors are still, in a lot of respects, exploring what BIM means to them as
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individual businesses. What we’re trying to highlight, as a solutions driven BIM provider, is to try and find solutions that are fit for purpose. “People do rush in, we hear the word ‘mandates’, and obviously the revised BIM mandate came out earlier this year, and again the same questions came up. People need to breathe a little and they need to understand a little bit more about what they need for their own deliverables.” With construction projects worth $2.8 trillion in the pipeline in the GCC, Wallett says the industry needs to prepare itself to be more transparent, or it will struggle to push forwards with the collaboration desired by contractors. “What does hold collaboration back are people’s fear of litigation and the ramification of legal issues. What it hinges on, certainly in this region, is having contractual documents
that allow people to work in integrated project delivery. “Will that ever happen in a strong way in this region? That’s difficult to say.” Cloud computing is increasingly prevalent in the construction industry, and Tekla is taking steps to prepare itself for the changing marketplace. “We’ve launched a new model sharing capability that is all cloud based,” Wallett points out. “It’s been under development for several years, and has been in live testing on projects around the world for a number of years before we decided to go to market with it, as we needed to be sure that it worked.” “We needed to make sure that things like numbering and sequencing all work properly and it doesn’t mess up, that’s something you really need to be sure about before you go to market,” he asserts.
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