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SEPTEMBER 2017 meconstructionnews.com
THE BUSINESS OF CONSTRUCTION
“if you look at ouR stRategy, it’s veRy much centRed aRound the stRategy of dubai”
Kez Taylor ploTs The evoluTion of aleC in an in-depTh inTerview wiTh Big project Me
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Contents
Issue 137 September 2017 08
14
18
26
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44
14 Getting it right
44 The importance of light
06 ME Construction News.com OnlIne
The biggest stories from Big Project Middle East’s home on the web
newS analySIS
Sameer Daoud says companies should filter out the noise and focus on getting the job done
lIghTIng
Big Project ME examines how lighting design can impact worker productivity in offices
08 DSI removes CEO, narrows loss 18 Kez Taylor
48 Show Previews
10 Spanish group invests in Oman 26 In good health
52 Top Tenders
12 Dubai industrial space demand 32 The challenge ahead
56 The future of consulting
The bIg pIcTure
Wael Allan removed from post less than a year after joining, DSI announces InTernaTIOnal newS
Unnamed Spanish hospitality group to build resort in Jebel Sifah Marina, Oman MarkeT repOrT
Cluttons report finds that innovative industries are spurring demand for new industrial space in Dubai
In prOfIle
Gavin Davids speaks to Kez Taylor, CEO of ALEC, about his company’s evolution SITe VISIT
Big Project ME gets an exclusive tour of ASGC’s Mediclinic Parkview Hospital project green legISlaTIOn
Nick Constantine says that while green building legislation is a good start for the UAE, much work remains to be done
InduSTry eVenTS
Previewing Light Middle East 2017, Cityscape Global 2017 and other shows TenderS
Big Project ME lists the Middle East’s biggest construction tenders for September 2017 laST wOrd
Jason Lewis from Limah Design looks at the role of consultants in a future dominated by artificial intelligence September 2017 3
Introduction
Stop, collaborate and listen
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ollaboration. Communication. Clarity. These are all buzzwords that have been floating around the construction industry for many a year, but with no real tangible difference made on the ground. This might be changing however, as a combination of factors come together to drive home the fact that if firms do not adapt to the world changing around them, then they’ll perish. This is a theme I see running through this month’s issue, starting with my interview with Kez Taylor, CEO of ALEC, where we discuss a broad range of topics, beginning with Binaa Dubai’s acquisition of a 90% stake in the contractor and how that’ll shape the way forward for the company, all the way through to a fascinating discussion about how ALEC is striving to work better with its partners and collaborators. That sense of cooperation continues in our site visit, where we visit the Mediclinic Parkview Hospital, which is being constructed by ASGC. Here we learn how the contractor is working hand-in-hand with the client and medical construction specialist firms to bring to life a hospital that will serve the southern area of Dubai, including high-profile areas like Arabian Ranches, Motor City and Dubailand. The examination of collaboration doesn’t stop there, as we also speak to lighting experts who tell us how they’re
eDItorIAL
DeSIGN
eDItor gAVIN DAVIDS
Art DIrector SIMON COBON
gavin.davids@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 Supported by
+971 4 375 5480 oNLINe eDItor BEN FLANAgAN SUB eDItor AELRED DOYLE aelred.doyle@cpimediagroup.com ADVertISING
Middle East Solar Industry Association
Empowering Solar across the Middle East
4 September 2017
FoUNDer DOMINIC DE SOUSA (1959-2015)
simon.cobon@cpimediagroup.com
PrINteD BY PRINtwELL PRINtINg PRESS LLC
PHotoGrAPHY
PUBLISHeD BY
MAkSYM PORIECHkIN cIrcULAtIoN & ProDUctIoN DIStrIBUtIoN MANAGer SUNIL kUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476
coMMercIAL DIrector JUDE SLANN
ProDUctIoN MANAGer VIPIN V. VIJAY
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SALeS execUtIVe tOM BROMLEY ﺟﻤﻌﻴﺔ اﻟﺸﺮق اﻻوﺳﻂ ﻟﺼﻨﺎﻋﺎت اﻟﻄﺎﻗﺔ اﻟﺸﻤﺴﻴﺔ
Gavin Davids editor gavin.davids@cpimediagroup.com @MecN_Gavin
ben.flanagan@cpimediagroup.com
+971 4 375 5714
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working with contractors, consultants and designers to create environments that encourage productivity in office buildings. The Smart Cities Report 2017 is also published alongside this month’s issue. We cover some fascinating topics in this year’s edition, with some of the region’s foremost thinkers sharing their insights and knowledge. Given the scale of investment that’s going into the smart city concept in Dubai, I would recommend you take the time to go through it. It’s fascinating – and essential – reading. And finally, the Big Project ME Awards 2017 are fast approaching, as is the ME BIM Summit. I hope everyone reading this takes the time to visit both www.bigprojectmeawards. com and www.mebimsummit.com to find out how they can be a part of both these events. Things are shaping up nicely, but we’re always keen to get more of the industry involved, so don’t be shy and drop us a line!
tom.bromley@cpimediagroup.com +971 4 375 5496
+971 4 375 5713 WeB DeVeLoPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI
Licensed by tECOM to registered company, CPI trade Publishing FZ LLC whose registered office is 207 – 209, Building 3, Dubai Studio City, Dubai, UAE www.cpitrademedia.com © Copyright 2017 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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Arabtec wins $171m Damac Akoya Oxygen contract
CONSTRUCTION
Nakheel awards Deira Islands contracts worth $117m
In pictures: Serenia Residences on Dubai’s Palm Jumeirah under construction
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Majid Al Futtaim to build $117m City Centre Sohar
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ALEC wins Jumeirah Living Marina Gate contract
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Dubai’s Drake & Scull removes CEO, narrows loss 6 September 2017
Video: See what you missed last year at Cityscape global
The article by Craig Ross on fire safety issues (“Grenfell Tower: Lessons from a tragedy”, August 16) was certainly timely. There were several differing factors behind the tragic fire in London in June as compared to the string of incidents in the UAE – including the Tamweel Tower fire back in 2012, Address Downtown and not to mention the blazes at the Torch. But there are certainly still some vital lessons for all to consider. There are some good fire-safety regulations in place in the UAE. But as Mr Ross rightly points out, site quality control checks are key to ensuring that this translates into best practice on the ground. Name supplied, via email
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The Big Picture
Drake & Scull removes CEO, narrows loss Wael Allan leaves Dubai-based contractor after less than a year in charge Dubai-listed contractor Drake & Scull International (DSI) has removed Wael Allan as CEO after less than a year in the post, as the company reported a lower Q2 loss, according to a statement to the market. The group’s board resolved to terminate the services of Allan and approved the resignations of several board members, including executive vice chairman Khaldoun Al Tabari, the company said. “It’s been a good journey. I came onboard at a difficult time, and I’m leaving the company in a good position. We managed to stabilise the company when it was in crisis, and it’s a good point to hand over,” Allan told Big Project ME when contacted by phone on Monday. Having taken the reins as CEO in October 2016, Allan’s mandate was to oversee the restructuring and reshaping of DSI. To that end, he brought in a fresh management team to manage the transition and consolidate the company’s presence in its key markets of Saudi Arabia, Qatar and the UAE. Furthermore, he also prioritised a return to DSI’s roots in MEP, stating in an interview with Big Project ME in March 2017 that the contractor needed to refocus on its core competencies and return to the top end of the market. “If you ask me, can we be number one in Dubai’s MEP market? Of course we can. Can we do the same in Abu Dhabi? The answer is yes. Can we become number one in Saudi Arabia? We’re certainly in the top three, and we can get there. The same applies to Qatar,” he said at the time. 8 September 2017
Stablisation in a time of crisis Wael Allan stablised DSI during a difficult time for the contractor, overseeing the transition to a new management team and the restructuring and reshaping of the company, along with bringing in Tabarak Investment to inject new capital.
Among other achievements during his time in charge was bringing in Tabarak Investment to inject new capital into the business, in the wake of a proposed share capital reduction that will see three quarters of the company’s share base cancelled, with a view towards extinguishing $462.8 million in historic losses. DSI said Tabarak Investment had reaffirmed its commitment to the company, confirming it had acquired a majority stake from a former CEO and extended an interestfree loan of up to $27.2 million. DSI said its net losses for Q2 2017 fell by 12% to $54.1 million,
$54.1m
Net losses (Q2 2017)
$61.5m
Net losses (Q2 2016)
$179.6m Revenues (Q2 2017)
$219.4m Revenues (Q2 2016)
compared to $61.5 million during the same period last year. Revenues for the quarter stood at $179.6 million, compared to $219.4 million recorded for the same period last year. The firm also said its capital restructuring programme is “steaming ahead on schedule and set to be concluded by the end of Q3 2017”. “The results of the quarter should be viewed within the context of our turnaround plan and the capital restructuring programme, and are consistent with our financial targets set out at the outset of the fiscal year,” said Feras Kalthoum, acting CFO at DSI. “Our efforts to complete the capital and debt restructuring of the group, coupled with continued balancing of our portfolio to mitigate any contingent exposure that may impact our future profitability, will soon reflect positively on our financial performance and top-line targets.” DSI board member Mohammed Atatreh added: “The year 2017 will continue to be a transitional year for DSI as we proceed with the execution of our turnaround plan. Our efforts to streamline our operations and restore our financial position will enable us to set solid foundation for sustainable growth. The continued support of Tabarak Investment has enabled us to maintain good progress year-todate, keeping us on track to set up the group for growth in 2018 and beyond. We look forward to shifting our focus on aggressively delivering and growing our order pipeline and invigorating our industry leadership.”
The Big Picture
Kuwait real estate market sees H1 uptick Improved activity particularly visible in residential sector, NBK report says Kuwait’s real estate market activity has improved significantly despite volatility during the first half of the year, compared to the second half of 2016, though it remained down 10% compared to a year before, a report has said. The latest Economic Update from the National Bank of Kuwait said that improved activity was particularly visible in the residential sector, which also helped keep real estate prices steady during H1 2017. June experienced the usual slowdown from the start of summer and Ramadan, the report added. Sales in the month eased to $451.5 million, down 14.6% year-on-year. The report explained that the annual decline was mostly due to weaknesses in the investment and commercial sectors. However, residential sector activity mitigated further weakness,
with healthy activity despite the seasonal factors. Real estate price indices continued to hover around their six-month averages, except for the residential land price index, which has retreated marginally. The residential sector maintained a solid performance that supported overall activity in June, with interest revived in residential plots. Growing at 15.7% y-o-y, residential sales amounted to $337.8 million in total on 308 transactions. A total of 161 plot sales were recorded during the month, an 85% increase from the previous year; most activity was in the Abu Ftaira and Al-Salam areas. During H1 2017, 757 residential plots were sold compared to 629 plots for the same period last year, the report added. Residential home prices remained steady, with residential
land prices easing slightly. The NBK residential home price index stood at 151.8 in June, with the report adding that the contraction from a year ago was the slowest in 13 months, at 7.7% y-o-y. The NBK residential land index eased to 162.9 in June from 168.0 in May, dragged down by a bulk sale of 49 plots at a relatively low market price; the rate of decline from a year ago remained steady at 10-12% y-o-y, a pace that was sustained during the last three months. The investment sector continues to underperform despite the short-lived surge in activity in May. Sector sales totalled $168.2 million, down 30.8% y-o-y. The number of transactions was also down by 25% y-o-y to 74. Apartment sales continue to carry the investment sector during the current
environment. Single apartments bought for investment represented 61% of total transactions. The NBK investment building price index remained steady in June. The index came in at 190.1, down only 5.6% y-o-y, an improvement from the double-digit decline rates recorded the previous year. The report added that housing inflation and investment prices aligned after the recent inflation revision to the CPI (consumer price index). It said the rise in vacant apartments and the slowdown in market activity have exercised downward pressure on rents that was not visible in the inflation data until recently. The revision of the consumer price index, which showed housing rents down 2.3% y-o-y for June, was more in line with real estate prices and activity.
“The annual decline was mostly due to weaknesses in the investment and commercial sectors. However, residential sector activity mitigated further weakness, with healthy activity despite the seasonal factors�
September 2017 9
The Big Picture
1. SpaniSh group to open hotel in Jebel Sifah marina, oman An as yet unnamed Spanish group is planning to build a major hotel in Oman. The hotel is expected to be a 500-room property in Jebel Sifah, a lifestyle community being developed by integrated tourism project developer Muriya, a joint venture between Egypt’s Orascom Development Holding (70% shareholder) and master developer Oman Tourism Development Company (Omaran). Jebel Sifah is set over 5km of Omani coastline and spans 6.2 million sqm. The development will include residential properties, a nine-hole golf course, restaurants and other hotels. A 200-room hotel is currently being developed by the Al Barwani group, and is a key part of the first phase of the Jebel Sifah development. “We are in quite an advanced stage of discussion with a Spanish group which has several hotels in Europe and North America, for them to come and build more than 500 rooms,” Ahmed Dabbous, CEO of Muriya Tourism Development, told the Times of Oman. The Spanish group is said to be a global developer, owner and operator of hotels.
10 September 2017
1
70%
2
Enterprise Ireland survey finds that 70% of Irish construction firms are looking at Europe for business
2. abu Dhabi funD financeS 76 moroccan proJectS The Abu Dhabi Fund for Development (ADFD) has financed a total of 76 development projects in Morocco at a value of $2.5 billion, according to a statement on its website. The projects span multiple sectors including agriculture, education, healthcare,
housing and transport. The ADFD has worked with the government of Morocco since the early 1970s. The relationship has focused on driving sustainable socioeconomic development across sectors that benefit Moroccan citizens. Speaking about the ADFD’s cooperation with the Moroccan government, Mohammed Saif Al Suwaidi,
director general of the Abu Dhabi Fund for Development, said, “At ADFD, we are truly proud of our cooperation with the Moroccan government. Together, we have supported many strategic and sustainable projects that have boosted economic growth and elevated living standards” in Morocco. The ADFD currently owns equity shares in multiple Moroccan companies .
The Big Picture
$309m India’s L&T Construction secures job orders worth $309m across various business sectors
4. hitachi claimS recorD with ultrahigh-SpeeD elevator Hitachi has announced that its ultra-high-speed elevator has achieved a speed of 1,260m/ min, the world’s fastest among all elevators operating today. The speed was recorded during a test of the elevator under installation at the Guangzhou CTF Finance Centre, a skyscraper complex building in
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China, said a statement from the Japanese industrial giant, and recorded by the National
3
Elevator Quality Supervision and Inspection Centre (Guangdong), an elevator public accreditation body. While the test was conducted for the purpose of technology development
33
of Hitachi elevators, the elevators in the Guangzhou CTF Finance Centre will run at their rated speeds of
Construction has begun on massive housing projects across 33 states in Nigeria
1,200m/min when they go into service, added Hitachi. The company said it will use this achievement for future product development, and strive to offer elevators with higher running quality as well as safety and comfort. The elevator is now in the
3. azizi, DlD to promote property to aSia inveStorS Dubai real estate developer Azizi Developments and the Dubai Land Department (DLD) have joined forces to promote Dubai’s real estate sector to foreign investors in India, Pakistan and China. The two entities will host a series of property roadshows in an effort to keep investors up to date with developments in Dubai, while also promoting
final adjustment phase and the city as a great place to live, work, visit and invest in. According to a statement from Azizi Developments, the DLD will promote the developer’s various projects, including the recently announced $3.2bn Azizi Riviera project in Meydan One. “We are honoured to be partnering with the Dubai Land Department to effectively tell Dubai’s story and position the city as a top global destination
for real estate investments,” said Farhad Azizi, CEO of Azizi Developments. “There are a wealth of opportunities here in the run-up to the Expo 2020, which has already seen interest from investors across the world. “Our collaboration with DLD hence allows us to meet with potential investors face to face, enabling them to better understand what Dubai has to offer,” Azizi added.
Hitachi has been pursuing even higher speeds, modifying control units and safety devices for the elevator.
September 2017 11
Market Report
Key Technologies Trigger DemanD for inDusTrial space Cluttons report finds headline rents holding steady across the emirate of Dubai as innovative industries spur demand for new industrial space
Dubai’s vision of diversifying its economy further and establishing itself as a thriving global business hub has accelerated business activity in a number of innovative industries, in turn spurring a new stream of demand for industrial space, according to leading international real estate consultancy Cluttons.
Cluttons’ bi-annual Dubai Industrial Market Bulletin for summer 2017 points to new requirements registered in the first six months of the year by companies such as Noon.com, which is opening a 18,116sqm fulfilment centre in Dubai South, while Amazon is showing interest in build-to-suit options
following its purchase of Souq. com. Siemens has also announced plans to set up its global logistics and distribution hub at the Expo 2020 site, highlighting the strategic geographic importance of the area to global logistics and distribution firms. “Dubai continues to move forward with its ambitious
“Dubai continues to move forward with its ambitious diversification plans, which has led to the emergence of new innovative businesses as well as the expansion of global players into the local market”
12 September 2017
Source: Cluttons
online boom Demand for increased industrial space is being driven by the emergence of new businesses like online retail that require distribution centres and logistics facilities.
diversification plans, which has led to the emergence of new innovative businesses as well as the expansion of global players into the local market,” say Faisal Durrani, head of research at Cluttons. “Online retail businesses, for instance, are relatively new to the region and will require distribution centres and other logistics facilities. We expect to see growing demand from this sector as it develops, particularly around Al Maktoum International Airport and the Expo 2020 site, where the majority of demand is currently centred for industrial space.” “This is a crucial juncture for the city as its world-class logistics facilities move from being regional hubs to global ones. Siemens’ announcement in April to establish its global logistics and distribution centre at the Expo 2020 site is a huge boost of confidence for Dubai and clear recognition of the government’s efforts to reposition the emirate on the world stage. “Despite the seemingly faltering global economic conditions, we expect Siemens to be joined by other international blue chip organisations as they take position in what will arguably be the world’s largest and most advanced
Market Report
logistics distribution hub centred around JAFZA and Al Maktoum International Airport, which will be further complemented by Etihad Rail terminals.” While new space requirements emerge, demand across the market has eased during 2017, exacerbated at present by the seasonal summer slowdown, with enquiry levels noticeably lower than at the start of the year. The persistence of an unstable
global economic outlook, which has caused requirement levels to ebb across the city, a growing amount of speculatively developed warehouse space and increased competition among landlords have all contributed to the increasingly stagnant conditions. Cluttons’ report shows that although demand has eased, headline rents as a whole across all the areas monitored have largely held steady. In the secondary
market, however, rental rates at Dubai Investments Park (DIP), Dubai Industrial Park and Dubai South have fallen by 4-12% over the last 12 months. “Looking ahead to the second half of the year, we expect the strengthening pipeline of speculatively developed space to put rents under pressure, with more secondary stock likely to face sharper corrections as activity levels are expected to
remain subdued. Landlords are expected to lower rents to entice relocation activity, and we expect occupiers to capitalise on this. With that in mind, we expect rents to dip on average by up to 5% between now and the end of the year, before there is the potential for increased stability as the Expo 2020 economic boost starts to materialise in early 2018,” Murray Strang, head of Cluttons Dubai, adds.
Dubai industrial market heat map (Q2 2017)
Location
Size sq ft
Class A rents (AED psf)
12-month % change
Class B rents (AED psf)
12-month % change
Jebel Ali Free Zone Authority
>20,000
36
0.0%
24
0.0%
Dubai Investments Park
>15,000
45
-4.3%
35
-12.5%
Dubai Industrial Park (Dubai Industrial City)
>8,000
38
0.0%
29
-9.4%
Dubai South
>100,000
55
-8.3%
35
-7.9%
National Industries Park (Techno Park)
>30,000
45
0.0%
35
0.0%
Al Quoz
<5,000
60
0.0%
38
-15.6%
Jebel Ali Industrial
>10,000
35
0.0%
25
0.0%
Dubai Science Park (Dubiotech)
<5,000
65
0.0%
55
0.0%
Dubai Silicon Oasis
<5,000
77
0.0%
65
0.0%
Ras Al Khor
<10,000
50
0.0%
40
0.0%
Al Jaddaf / Umm Ramool / Al Qusais
<8,000
70
0.0%
50
0.0%
Dubai Airport Free Zone Authority
<5,000
60
0.0%
50
0.0%
September 2017 13
Analysis
GettinG it RiGht As fears of a price war grow, Sameer Daoud, chief development officer and managing director at Drake & Scull International, argues that companies should filter out the noise and maintain focus on getting the job done right
The definition of progress, innovation and technology can in essence be summarised as doing more with less. However, this does not mean that being creative and having fantastic ideas offers any value in and of itself. Innovation requires discipline and focus so that it can be applied and lead to real results in the real world.
Whenever I hear buzzwords, I remind myself that much of what comes out of the mouths of sales and marketing people evades the perennial question: “What exactly is the value of what you are offering?” I believe this is not a question that any company should fear. Rather, it needs to be embraced. If a company does not have a valid answer, your business will not survive. This is the only trend and competitive advantage that never goes out of fashion! In theory, having good business sense is simple. Understand the 14 September 2017
What is the value of what you are offering? Companies must ask themselves whether what they’re offering is of value to their market and clients.
Analysis
demand in the market, and gather the resources necessary to meet and satisfy this demand better than your competitors. However, when opening up any business magazine, this simple reality often gets lost in the noise of business gurus espousing the virtues of innovation and creativity. Sure, it is appealing to try and gaze over the horizon and discover new opportunities. It is certainly more interesting to talk about being an industry disrupter, compared to competing in a traditional industry with conventional technologies. And who doesn’t want to be the company that swoops in and pulls the rug from underneath its competitors by introducing a new technology or a gamechanging business model? But as entertaining as such ideas may be to listen to, they are not necessarily good for business. In fact, this talk is often more distracting and destructive than it is productive! There is a constant risk of companies being diverted from their core competencies. Counteracting this pressure demands that you keep your focus and discipline. I want to address two main threats that companies need to keep front and centre so as not to lose their focus and discipline. These are: 1. Temptation to pursue ‘new’ opportunities in the form of trends and technologies 2. The allure of ‘diversification’ into the unknown waters of emerging markets. Often, talking about innovation is about creating positive emotions that distract from questioning the real underlying value. As contractors, we need to place ourselves in the shoes of our clients and understand the motivations underlying their purchasing decisions. Our services and products need to fill a need, solve problems and serve a function.
“There are no short cuts or slogans that can make up for second-tier workmanship or materials. We are focused on getting the job done, and getting it done right” On top of that, they need to get delivered at a more competitive price point than our competitors. This reality is especially clear in our business of construction and MEP. For the clients of contractors, sales pitches that hit all the right buzzwords are of no value. Our industry is not about selling feelings. It is about solving problems and creating value for clients. There are no short cuts or slogans that can make up for second-tier workmanship or materials. We are focused on getting the job done, and getting it done right. But even for us, the idea of creating ‘new’ markets and ‘new’ demand is often distracting. Where other industries have seen the entry of companies that have completely disrupted September 2017 15
Analysis
the competitive landscape, the construction sector remains very traditional. The more established the industry, the more conventional it is likely to be. But even in construction, ‘thinking big’ often gets in the way of ‘thinking smart’. It is easy to miss more lucrative opportunities staring you right in the face because they seem boring! The same flawed rationale for pursuing disruptive innovation is present in the allure of entering new markets. To find greener pastures in the form of profits, one has to leap into the ‘blue yonder’ not yet reached by rivals too caught up fighting to the death for the crumbs left in mature markets. Consequently, the idea that you need to take risks to get higher returns is taken for gospel to the extent that it crowds out better business opportunities closer to home that are often overlooked or ignored. not the time to cut corners With the market’s demand for quality and reliability at such high levels, construction companies cannot afford to compromise on quality, Daoud says.
16 September 2017
“Consequently, the idea that you need to take risks to get higher returns is taken for gospel, to the extent that it crowds out better business opportunities closer to home that are often overlooked or ignored”
Taking a chance on new markets and new technologies may lead to high rewards, but is as likely to leave you shipwrecked or adrift, floating aimlessly out at sea, if you are not very clear about what your weaknesses are. Just as the novelty of new technologies is exciting and appealing, so is breaking into new markets promising rapid growth. However, often this is misleading and a distraction from seeing clearly where you can best deliver value for clients. This is most times the biggest business opportunity that is missed! A large part of the explanation for this is our temptation to go with the crowd, and to believe whatever the current hype and trends are, skewing our perception of reality. In the late 1990s, you were not allowed to question the valuation of tech companies. Then it was the wisdom of the crowd that you could not question real estate investments, or that the
price of oil would never again go below a hundred dollars. What are the truths we agree on today that we will consider to be mass delusions tomorrow? The argument is it should not matter, as long as you stay focused on understanding your clients’ needs and competing by delivering more value than your competitors. This is the only trend and competitive advantage that never goes out of fashion! When it comes to both workmanship and materials, the market’s demand for quality is relentless, which is getting ever clearer in the current regional market. Cutting corners is not a viable long-term strategy! In the end, lasting performance and competitiveness is about consistency achieved through focus and discipline. The only lasting business relationship is the one that creates mutual economic value for both parties.
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“PeoPle don’t really understand what their resPonsibility is. i think that needs to be cleared uP. we need a clear brief, clear accountability and contracts that actually reflect that. a team must have a clear strategy and objective on a Project to succeed” Kez Taylor, CEO of ALEC, speaks to Gavin Davids about a variety of issues that he sees hampering the growth and development of the regional construction industry, while also discussing how his company is reshaping itself in a changing marketplace
18 September 2017
In Profile
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In Profile
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arlier this summer, news broke that Binaa Dubai, a UAE company specialising in construction, had acquired a 90% stake in Dubaiheadquartered contracting giant ALEC Engineering and Contracting LLC. While this may be something of a surprising development, given that ALEC has long been one of the major players in the UAE’s construction industry, a closer look reveals that the sale wasn’t a sudden decision. Back in August 2016, Gulf News reported that ALEC’s founder and former main shareholder, planned to raise up to $640 million in funds through the sale of its stake in the contractor, using other assets as collateral for a loan. This decision came about as the family-owned Abu Dhabi company looked to repay banks as it sought to restructure $1.6 billion of debt. As a result, in June 2017 it was confirmed that a 90% stake in ALEC had been sold to Binaa Dubai for an undisclosed amount. Trussbridge, an independent financial advisory firm based in DIFC, was the sole financial advisor to ALEC’s shareholders during the deal. In a statement on its website, the firm said it had provided comprehensive financial advisory services to the ALEC shareholders, including advising them on strategic options, aligning their objectives, positioning the company, identifying potential buyers and leading negotiations with the buyer on behalf of the selling shareholders. The assumption that this was a well planned and 20 September 2017
The perfect partner Binaa Dubai is the perfect partner for ALEC because of how closely aligned the two companies’ strategies and ambitions are, Kez Taylor says.
strategic acquisition is borne out when speaking to Kez Taylor, CEO of ALEC. “We’re very excited by the acquisition,” he tells Big Project ME during an exclusive interview at ALEC’s headquarters in Dubai Marina. “For us at ALEC, it’s the perfect partner going into the future, and what we believe that we can do together is take our business from where it is today to much greater heights.” “I think if you look at ALEC’s strategy, it’s very much centred around the strategy of Dubai, and I think we’re very well placed in terms of our offering and where we are as a business. Furthermore, I think we’re also very closely aligned to where our new partner is, and I think that we’re actually a very good fit for their overall strategy. We believe that we can add value to Dubai and the greater region.” Given that ALEC is one of the most prominent contractors in the
“There’s massive opportunities there, and I think people need to become aware of the benefits of it. It doesn’t cost you much, and in terms of reducing energy consumption it does make a lot of sense”
region, and certainly one of the busiest, it’s only natural to wonder how the acquisition will affect the company’s operations. With subsidiaries working in fields as diverse as MEP, fit-out, solar power and smart energy solutions, the group has a range of operations that could be affected by the acquisition. Not so, says Taylor, who is quick to point out that the group will continue to operate independently. “What we’re going to look for is value-adds on both sides. If we’ve got a value-add that makes sense, then obviously we must team up. One of our core values is innovation – we try and figure out how we can improve things, how we can make things better, where the new markets are going and where we should be going. We will always try and look to the future, to see where we should be positioning ourselves.” The group’s upwards trajectory has continued in 2017 with several projects won including the construction contract for the $163 million Jumeirah Living Marina Gate project, which will be jointly executed by ALEC and subsidiaries ALEMCO and ALEC Fit-Out. Other major projects include the contract to build the Middle East’s largest private solar plant for Al Nabooda Automobiles, which will be carried out by ALEC Energy, and construction of the first of two planned data centres for Dubai Airports. The variety of work won is a testament to the diversification of the business that Taylor has overseen, and he says there’s plenty more to come from the group. “Both shareholders would like to see us grow the business with a quality order book. We’re in quite a strong position at the moment. We’ve got about $2.45 billion worth of work on hand and already secured. I think where we’d like to be is a business that turns over about $1.36 billion a year. If you
In Profile
working in alignment ALEC works hard to ensure alignment between the entire team on any of its projects, working together to create a strong and successful project strategy.
look at the market in the UAE, it’s a market of about $32.6 billion, so it’s good to be participating in 4% to 5% of the market.” To achieve that, the group is constantly evolving and improving, he says, explaining that as part of plans to grow over the coming years, he and the rest of ALEC’s leadership team have decided to invest considerable resources in developing training facilities and partnerships that will improve the overall efficiency and productivity of the company on its projects. “We’ve just established a very good training facility within our yard. What we do is put 60 artisans through our training facility every week. In a month, that’s around 300 people going through. Also, from a tower crane point of view, what we’ve done as a business is align ourselves with Liebherr, while we’ve also aligned ourselves with Peri on the formwork side. We think we’ve gone for the best in class in terms of equipment that we utilise. We don’t go for the cheapest equipment, we go for what we deem to be the most reliable and the best performing,” Taylor asserts. Another aspect he wants the company to focus on is MEP, pointing out that it is the heart and guts of a project. As such, he’s adamant that ALEC has to have the ability to influence or self-execute on the MEP side,
which is why ALEMCO is a crucial aspect of the company’s plans. On the fit-out side, ALEC Fit-Out offers a lot of value to the company’s clients, allowing them to offer a great end product in a cost-effective manner, he says. Although there is much a main contractor can do to influence its own success, it is ultimately judged by how it delivers its projects. For that to happen, all the links of the chain must be in sync with each other when it comes to fulfilling their duties during the
delivery process. This is something Taylor is acutely aware of and is keen to address, both on ALEC projects and across the industry. “You’ve got to have a design that functions, that works and that’s given to you in the sequence and time that you need to make a project successful. I’d say that’s where the biggest challenge lies at the moment – we actually have to make sure that the consultants are set up for success, in terms of the conditions, the fees and the way that they
go about giving us a design,” Taylor emphasises strongly. “We put a lot of focus on design up front and also getting alignment between the entire team. We’ve worked really hard at putting a project strategy together, we’ve communicated that through to all the stakeholders [we work with] – the subcontractors, the consultants, the clients, the operators – everybody clearly understands what we need to do on a project to successfully execute it.” While ALEC certainly puts a lot of effort into getting an alignment between the key players on a project, with the contractor even going to the extent of organising workshops with external experts to lead discussions about future trends and innovations, getting a group of people to act together in the best interests of the project remains a massive challenge. “As simple as it may sound, people don’t [work together]. The project should take precedence over any individual needs or requirements, because ultimately, if
the project takes precedence Taylor asserts that for ALEC, the project takes precedence over any individual needs or requirements, as ultimately a successful project is a success for the entire team.
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In Profile
you have a project that’s successful, then everyone that is a part of it is going to be successful,” he asserts. “I think the problem is that the responsibilities aren’t clearly defined. If you’re a designer, then it must be clear that you’re doing the design. If you’re a client, then your responsibility is to ensure that your brief is clear and that the right people are employed, and that everyone is doing their job efficiently – and that everyone is paid on time. Those are the
responsibilities of the client. If you’re going to employ somebody to do something, it should be that they’re compensated on time for the work that they do.” Touching upon this topic leads Taylor to open up further about one of his particular concerns: the way contracts are structured in the construction industry. Not only are the terms and conditions onerous to contractors, he says, they also often have conflicting clauses, which leads to problems
throughout the delivery process. “People don’t really understand what their responsibility is, what you’re meant to be doing becomes a grey area. I think that needs to be cleared up. We need a clear brief, clear accountability and contracts that actually reflect that. A team must have a clear strategy and objective on a project to succeed. “It sounds simple, but it very rarely happens. If you look at the major projects in this region – let’s say the projects over a billion US
dollars – the majority of them don’t get finished on time, they don’t get finished within budget and they often end up in dispute, with disgruntled people within the project teams. We’ve got to figure out how we avoid that,” he stresses. Another bugbear for the ALEC CEO is related to the design and planning process – the issue of shop drawings. Simply defined as a set of drawings produced by the contractor that outline and plan the installation of systems and units
“I think if you look at ALEC’s strategy, it’s very much centred around the strategy of Dubai, and I think we’re very well placed in terms of our offering and where we are as a business. Furthermore, I think we’re also very closely aligned to where our new partner is, and I think that we’re actually a very good fit for their overall strategy” concerns about contracts Conflicting clauses in construction contracts can lead to a multitude of problems throughout the delivery process.
22 September 2017
In Profile
on a construction site, for Taylor they are becoming increasingly problematic for the contractor, due to misuse within the industry. “One of the curses of our industry is shop drawings being used to develop the design. That’s not what shop drawings are meant to do. We’re meant to get a design that’s well thought out, everything has been included and it all works and functions properly. Then it’s given to us and we do a shop drawing, get it signed off and we can then construct. “What tends to happen instead is that shop drawings get used to develop the design. We get an incomplete design, the shop drawing process then starts and we go through many iterations, losing time and putting a lot of energy and effort into trying to develop the thing to the point that people
are satisfied with how it’s meant to look like. That’s got to change! “The idea of a shop drawing really should be about putting it together so that you can go and fabricate. It’s putting the finer details to it. The shop drawing process shouldn’t be to develop and change the design to suit. That leads to inefficiency. If the design isn’t done properly in the first place, you go through all these changes and then you’ve got time lost, inefficiencies, and you’ve got a guy who should be doing it once now doing it four or five times. It’s a job that should take a day, but can take a month. When that happens on multiple fronts on a job, it leads to massive inefficiencies,” Taylor outlines. “For us as a contractor, we have massive costs on a daily basis on a project. If we delay a big job on
“We put a lot of focus on design up front. We’ve worked really hard at putting a project strategy together, we’ve communicated that through to all the stakeholders [we work with]”
a project by even a day, then our fixed costs – not our direct costs – can be as much as half a million dirhams a day! The effort and energy that we should be putting into preventing those delays from occurring should be in place, but we’re just not getting it right.” With the conversation drawing to a close, Kez Taylor returns to the topic of ALEC’s future, and despite the challenges and issues he sees in the industry, he’s keen to stress that he still sees a number of significant opportunities available to the group, particularly in the prefabrication sector. “You’ve always got to be on the lookout for future trends and keep an eye on where things are going. I think from an expansion point of view, the construction process needs to move off-site a lot more. If you can sort out
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In Profile
bring in the specialists Specialist firms will have an increasingly large role to play in the regional construction market, Taylor predicts.
the design and manufacture it off-site, and then basically bring it together and connect it on-site, then you’ve got a very efficient model of putting things together. “Basically, what we’re doing at the moment is trying to put everything together on-site, and it’s not fixed. It’s a bit like a painting, people are tweaking it all the time and we’re a part of that. It’s a creative process and we do understand that, but I think if you figure out what you want, pre-manufacture it and then figure out how you bring it all together and connect it on-site, I think that there’s a lot of opportunity in that field.” An existing business unit that will see increased demand is ALEC Energy, Taylor says. With the strategy of Dubai moving ever more towards green building and energy efficiency, he predicts that the unit will see a lot of business in coming years. “There’s massive opportunities there, and I think people need to become aware of the benefits of it. It doesn’t cost you much, and in terms of reducing energy consumption it does make a lot of sense. They [ALEC Energy] are doing well and they’ve got massive potential.” With Smart4Power, the company’s other sustainable business unit, also growing its 24 September 2017
“You’ve always got to be on the lookout for future trends. I think from an expansion point of view, the construction process needs to move off-site a lot more. If you can sort out the design and manufacture off-site, and then bring it together and connect it on-site, then you’ve got a very efficient model of putting things together”
market share, especially in the retrofit space, Taylor says it’s becoming apparent that specialist firms will have an increasingly large role to play in the regional construction market. To that end, he asserts that designers must start working with specialist firms from an early stage, so as to ensure that a project gets the best equipment and systems installed. “You end up with the best solution when you put a design team together with a specialist at an early stage, because very often the specialist is very aware of what works, what makes sense and what is viable. If
you’ve got specialist groupings and you put them together with the design team from early on, you can then influence the design to make the right kind of decisions,” he explains. “When you get that right, you’ll end up with a very good result. Often what happens is that design, construction and specialists work in isolation, which isn’t the right way to do it. What you should be doing is combining client, designer and specialist together at an early stage and figuring out what is the best way of doing things on a project. “The way a traditional job works is that the designer works in isolation, puts out the tender, and the guys who are cheapest get the job. But actually, look at the value that could have been created. The design may not be as efficient as it could have been, it could have been a lot better and a lot more cost-effective. You’re missing out on all of those opportunities. The best thing to do is get everyone together early. That’s where the value is,” he emphasises in conclusion.
automation is the future Taylor says ALEC is exploring the automation sector, as he believes it is an efficient model for contractors.
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Site Visit
26 September 2017
Site Visit
In Good HealtH
Big Project ME gets exclusive access to the Mediclinic Parkview Hospital being built by ASGC. Gavin Davids takes a tour of this high-end healthcare project
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Site Visit
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recently released report found that the project pipeline for healthcare projects in the MENA region amounts to more than $55.2 billion, with 37 megahospital projects worth $28.2 billion already underway in the Gulf. These projects are expected to add 22,500 hospital beds to existing capacity, the Alpen Capital Healthcare Report says, adding that the outlook for the rest of the year is expected to be just as robust, with major projects being undertaken throughout the region. Craig Plumb, head of
Research, MENA for JLL, says the healthcare sector is becoming increasingly attractive to real estate investors looking to diversify their investments. “The healthcare sector offers the ability for real estate investors to participate in a growing market backed by the government, where long-term leases can be structured to major regional and international healthcare providers. “From a developer’s perspective, healthcare facilities can contribute to the overall attraction of residential communities and also comprise a potential source of demand for commercial space within office or retail projects. While major hospitals may be too specialist for many contractors, clinics and other less specialist medical uses are well within the capabilities of more general contractors.”
Serving the neighbourhood The Mediclinic Parkview Hotel will serve the neighbourhoods of Jumeirah Village, Al Barsha South, Arabian Ranches, Motor City, Dubai Sports City and the southern areas of Dubai.
28 September 2017
FACTS AND FIGURES Project Name: Mediclinic Parkview Hospital Client: Mediclinic Main Contractor: Al Shafar General Contractors Main Consultant: Stantec MEP Contractor: Al Shafar United Interiors: Al Shafar Interiors Ready-mix Supplier: Emirates Beaton
The UAE is home to some of the region’s highest-profile healthcare projects, including Al Ain Hospital in Al Ain, Burjeel Medical City in Abu Dhabi and the Gulf Medical University Hospital in Ajman. However, one project guaranteed to garner a lot of attention is the Mediclinic Parkview Hospital, a high-end hospital that will cater to the southern area of Dubai, specifically the immediate attachment areas of Jumeriah Village, Al Barsha South, Arabian Ranches, Motor City and Dubai Sports City. Spread across 47,251sqm, the facility stands 10 storeys high with two basement levels and a ground floor. Strategically situated on Umm Suqeim Road between the junctions of Al Khail Road and Sheikh Mohammed Bin Zayed Road, it will offer inand out-patient services across
Site Visit
Medical challenges One of the major challenges on the project has been balancing the needs of the medical equipment contractor with those of the main contractor.
a full range of disciplines. As construction work progresses rapidly on the project, with construction expected to be completed by 2018, Big Project ME was invited by the main contractor, Al Shafar General Contracting (ASGC), to tour the site and understand how the builder oversees the challenge of delivering this complex project. “The built-up area is around 63,000sqm,” says Raafat Ramzy Riad Gendy, construction manager at ASGC and the man responsible for the successful delivery of the hospital. “There are exactly 89 patient rooms, with six operating theatres and all the facilities, such as MRI rooms, that you’d find in a general hospital. There are also 350 parking spaces.” In total, the hospital will be a 190-bed facility with 100 consultation rooms. Levels seven and eight will have terrace gardens, while level areas and the roof space will be used to house the hospital’s MEP plant and solar panels. When Big Project ME visited the site, 27% of work had been completed, but with the project team aiming to complete the project by October 2018, work is progressing rapidly, especially when one considers that ASGC only received the building permit in January 2017. Addressing the challenges
around the construction of the building, Gendy says that while there are certainly familiar elements to contend with, one of the biggest challenges the project team faces is managing the requirements from the medical side. “Right now, it’s about coordinating between the medical equipment department and the construction field,” he explains. “As the main contractor, I’m doing the main fit-out with the medical equipment subcontractor
who is working for the client. There are some specific jobs that need to be done during our normal procedures. “For example, we have critical rooms like the MRI room – the medical equipment itself will be supplied by the client, so some coordination has to be there – like with the lead lining and the RF shielding for the room. This is related to the radiation from the medical equipment. There have to be precautions for this, like special treatment for sections of
the walls, for the concrete and the lining, which means that a layer has to be built into the wall and ceiling to protect against whatever radiation is coming from these machines or tools. “This is one of the main tasks for us – coordination between the medical equipment contractor and us as the main contractor,” he asserts. Looking towards the construction aspect of the project, Gendy adds that several specialist subcontractors had to be drafted in to work with ASGC’s sister company, Al Shafar United, on the main MEP works (electrical, AC, plumbing and firefighting systems) for the hospital. “For some jobs, you need specialists – like with the medical gases, which for sure needed specialists [to make sure systems were correctly installed]. Then there’s the solar specialists and the lining and RF shielding specialists as well. In terms of the engineering on this project, we’re using BIM, which is helping us solve whatever obstructions
Progressing on schedule Work on the hospital project is progressing smoothly, ASGC says, with more than 27% of the work completed since receiving the building permit in January 2017.
September 2017 29
Site Visit
come up in the coordination with the MEP subcontractor, specialist subcontractor or medical equipment subcontractor.” With regard to the engineering, Gendy explains that the column arrangement and locations of the building were provided to the team, keeping in mind the architectural, structural and MEP requirements. For the structural system, he points out that the building consists of reinforced concrete vertical elements (columns and core wall), reinforced concrete horizontal elements (flat slabs with thickness varying from 200400mm, with the majority being 250mm), and drop panel slabs of 100-150mm, as per the design provided. Furthermore, floating slabs are being used to control the noise transition in several locations, while the steel structure is used to support faced elements. “Our challenge here is that a hospital is a building with doubleheight floors, so formwork was a major issue to solve. The formwork needs to be fixed in a special order and managed in a safe manner. The
Height is an issue The building poses some interesting engineering challenges due to the project having double-height floors, Gendy says.
second challenge is the extensive coordination works required with the specialist contractors,” Gendy says, returning to a topic he touched on earlier in the interview. Although ASGC is using its own sister companies to work on the project (Al Shafar United is the MEP contractor, while the main joinery work is being done by Al Shafar Interior and Emirates Beaton supplies the concrete ready-mix), there is still an urgent need for close coordination. “We have weekly meetings
Shifting equipment There are three tower cranes and two mobile cranes onsite, allowing the project team to move materials and equipment around the site smoothly and quickly.
30 September 2017
“Right now, it’s about coordinating between the medical equipment department and the construction field. As the main contractor, I’m doing the main fit-out with the medical equipment subcontractor who is working for the client. There are some specific jobs that need to be done during our normal procedures”
between the client and our subcontractors, and one with the subcontractor to give us updates about their specialist activities. We also have weekly technical coordination meetings with the BIM team to resolve the technical conflicts, following which the proposed technical solutions are submitted for the consultant’s approval.” With more than a thousand workers currently on-site and over 3,000 expected at peak, these efforts to lead coordination and collaboration on the project will become vital as the team looks to hit its October 2018 deadline. Gendy says the workforce is operating on a 24-hour construction schedule, with two shifts per day and a six-day working week. While Fridays are meant to be off-days for the majority of the workforce, he does concede that certain jobs, like concrete pours, do happen. “Logistically, right now we have three tower cranes and two mobile cranes on-site. At the same time, we have a laydown area that helps with the long lead items and shifting equipment. We have full staff to manage the ordering and approval of materials, and we use the Oracle system, so when we receive approval on the material, the procurement department awards the selected supplier.
Site Visit
We also have a dedicated cost engineer that monitors the cost and the budget,” he explains. In addition to all these measures, he reveals that ASGC also uses drones to help the project team monitor progress on the site. With the tour coming to a close, talk turns to health and safety measures on-site. Given the size and scale of the project and its workforce, Gendy says the contractor has taken several major steps to ensure safety and security, in line with the group’s own stringent safety standards and policies. “On-site, we have the safety manager and several senior safety officers. We look to ensure best practice through awards on a monthly basis. We motivate people and we have a strong culture of safety. Every month, people who are doing a good job are rewarded,” he shares. “We have 1,056 people on-site and every month we choose four or five of them, the ones who are working in safety, housekeeping, operations, quality and so on,
AREA: Basement 2 (Raft Slab) Total Built-up Area: 9,045sqm Basement 1 Total Builtup Area: 9,045sqm Ground Floor Total Built-up Area: 7,054sqm First Floor Total Builtup Area: 5,882sqm Second Floor Total Built-up Area: 5,309sqm Third Floor Total Builtup Area: 4,975sqm Fourth Floor Total Built-up Area: 4,515sqm Fifth and sixth Floor Total Built-up Area: 4,795sqm each Seventh Floor Total Built-up Area: 4,228sqm Eighth Floor Total Built-up Area: 2,930sqm
and we reward them, display their photos on-site and so on.” To control operations, he says a permit system is employed, which ensures that workers are fully briefed and prepared for the tasks they’re undertaking. “If we’re working on a hazardous task like grinding, for example, then we will have safety permits signed by the worker who will do the job and his direct engineer and foreman, then operations, before a final check-up by the safety department. There are different kinds of permits – there are confined space permits, high-risk areas permits and so on. Whoever comes to the site newly has to be inducted. This is universal for the workers or the engineers. “Also, we have safety officers in charge for all the areas. For the finishing we have separate teams, for the concrete we have separate teams, for the HVAC or MEP subcontractors we have separate teams looking after them from a safety POV.” In addition, the safety team has ensured that there are fire
extinguishers every 30 metres, while there is also what Gendy calls a “safe walk area” running through the entire site. The signage found throughout the site uses three languages – English, Hindi and Arabic. ‘We also have a good rest area with AC and toilet facilities for the workers. We also have a clinic with a resident nurse on-site, which provides first aid if needed,” he adds, pointing out that ASGC’s policy on safety violations is stringent, with first offenders receiving a warning letter and repeated offences leading to termination of work for the offender. In conclusion, Gendy says that work on-site is progressing to his satisfaction, and despite the challenges facing the team, he remains confident that the project will be delivered to everyone’s satisfaction, especially the client, Mediclinic. “We are ahead of the programme by 40 days. The situation on-site is healthy and relations are good,” he asserts proudly.
HSe takes precedence ASGC pays close attention to health and safety standards and behaviour, with workers rewarded for safe working practices and watched closely for any infractions.
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Green Building Legislation
The Challenge ahead Nick Constantine, senior surveyor in the Project and Building Consultancy department at Cavendish Maxwell, says that while green building legislation is a welcome development in the UAE, thereâ&#x20AC;&#x2122;s plenty of work to do
32 September 2017
Green Building Legislation
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reen building, put simply, is the development of high-quality buildings that have as minimal an effect on the environment as possible, during both construction and operation. It is achieved through the commitment of all parties involved and created through innovative design and the implementation of sustainable methods of construction. Although this can be accomplished independent of any regulatory framework, it is important that governments take a central role in leading excellence in green building. The UAE, in particular Abu Dhabi and Dubai, has taken on this role and is beginning to emerge as a global leader in green building. In 2010, HH Sheikh Mohammad bin Rashid Al Maktoum launched UAE Vision 2021, which outlined six national priorities for the regional governments to focus on leading up to 2021. One of the six focus areas for the UAE is the preservation of the environment and ensuring sustainable development. Since then, both Abu Dhabi and Dubai have implemented muchneeded legislation, introduced green building initiatives and made certain commitments to ensure this vision is realised. In 2010, Abu Dhabi released the first version of its Pearl Rating System (PRS), which provides a model for assessing the sustainability of a development and awards a rating to the building across three stages: design, construction and operation. The PRS scores a development
across seven categories and sets a minimum standard which all developments must achieve by complying with the mandatory credit requirements. These mandatory credits are supplemented with a range of optional credits available to developments wishing to achieve a higher Pearl Rating. Dubai has also created a legislative framework of its own to govern the development of buildings, to ensure design and construction practices are improved and to limit the effect the built environment has on the natural environment. Legislation such as the Dubai Green Building Regulations and Specifications, introduced by Dubai Municipality in 2011 for government buildings and extended to include private buildings in 2014, has provided a much-needed foundation to encourage developers, contractors and consultants to incorporate sustainability into projects. The emirate has also followed Abu Dhabiâ&#x20AC;&#x2122;s lead in launching the Al Saâ&#x20AC;&#x2122;fat Green Building Evaluation System last year. Although not yet mandated, it also sets out minimum requirements that all projects must achieve and provides criteria for rating new buildings according to implementation of green building standards. The move by both Abu Dhabi and Dubai to create their own green building rating system is one that should be celebrated. While global systems draw criticism for their generic approach, these regional rating systems can be customised to suit the local environment and the rating criteria influenced by the sustainability targets of the emirates. While the implementation of regional rating systems is a positive move, there is still much more that needs to be done to further improve the sustainability September 2017 33
Green Building Legislation
Investing in renewable energy The UAE has been investing heavily in renewable energy sources in an effort to reduce residential energy consumption and increase the amount of clean energy produced.
of buildings across the UAE. This must be driven by developments in innovation, education and legislation if the UAE wishes to match the standards of the highest performing Western countries. The UAE appears to be well aware of this and mindful of the challenges. The Middle East has a climate unlike anywhere else in the world. The extreme temperatures and high humidity, together with the sand and corrosive atmosphere, make it more difficult to implement existing technologies. The UAE is attempting to overcome this disadvantage by supporting innovative initiatives such as the Solar Decathlon
Middle East. In partnership with the US Department of Energy, the competition will involve universities from around the world and place them in competition to design, build and operate an energy-efficient house. Due to be completed in 2018, this could present a breakthrough for green building in the UAE. The competition is focused on creating a sustainable solar powered house, but there is potential for the technologies designed for this to be applied in some form to the wider built environment. The UAE is also investing significantly in renewable energy sources, in an effort to reduce
residential energy consumption by 40% and increase the amount of energy produced by clean energy sources from 25% to 50% of the current energy mix, in accordance with the UAE Energy Plan 2050. Although the climate is harsh in the UAE, there is an abundance of sunlight, which provides the obvious advantage of being able to harness the energy from the sun using photovoltaic panels. Dubai already has the Mohammed bin Rashid Al Maktoum Solar Park, with its third phase of development understood to be underway. Abu Dhabi also took a large step towards meeting its targets in August 2017, with
the announcement of what is billed to be the world’s largest solar power plant, a collaborative venture between Abu Dhabi Water and Electricity Authority, China’s JinkoSolar and Japan’s Marubeni. The plant is programmed to be operational by 2019 and will produce 1,177MW of electricity, enough to power 200,000 homes. Although innovative green building initiatives and large-scale developments in renewables will certainly help the UAE realise its targets for sustainability, it must be recognised that these targets are ambitious. Dubai in particular is almost back to its pre-2008 developing vigour, with
“While the implementation of regional rating systems is a positive move, there is still much more that needs to be done to further improve the sustainability of buildings across the UAE. This must be driven by developments in innovation, education and legislation if the UAE wishes to match the standards of the highest performing Western countries” 34 September 2017
Green Building Legislation
Taking on the challenge While it may be a challenge to achieve sustainable growth, the UAE is willing to take it on and succeed, says Nick Constantine.
Big Project Middle East Due: 08/23/2017
â&#x20AC;&#x153;Although green building initiatives and large-scale developments in renewables will certainly help the UAE realise its targets for sustainability, it must be recognised that these targets are ambitiousâ&#x20AC;?
Cavendish Maxwellâ&#x20AC;&#x2122;s Property Monitor indicating that an additional 30,402 units will be completed by the end of 2017. Continuous growth is something the UAE had become synonymous with, and developing the built environment in this manner brings with it a rise in population, increased energy consumption and additional resource demands. It is certainly a challenge to achieve sustainable growth, one which the whole world faces. This challenge is amplified by the scale and pace at which the UAE is expanding. However, in a region which has transformed itself into a metropolis in the desert and established itself as a leading power in green building, all within 20 years, who would be willing to bet against the UAE accomplishing its targets?
September Issue
September 2017 35
Expert Voice
Market leaders provide valuable insights and opinions for the construction industry Innovating to improve productivity KONE has developed innovations like the KONE JumpLift to help increase productivity in overall operation.
as major airports, shopping malls, residential and office towers and public transport hubs, from simple part replacements to complex projects such as the Jeddah Tower (expected to be the tallest tower in the world upon completion). We not only work on new buildings, but also on already-in-use buildings that require modernisation. We work closely with customers from the start of a project in design phase to completion for successful delivery. The construction industry has evolved, especially when it comes to the increased speed that buildings get erected with, demanding shorter timelines. This has resulted in the need for our products to be installed faster to meet these demands. We continuously work on the design of our products and installation methodologies, enabling faster installation periods, thus resulting in reduced installation time and cost. All this is done while maintaining KONE’s high standard of quality. How is KONE technology being tailored to meet local demand in its key Middle East markets?
InnovatIon Icons
Gys van Schalkwyk, regional execution productivity manager (Middle East & Africa), tells Big Project ME how KONE innovates to benefit its clients and partners
Looking at overall operations for KONE in the Middle East, can you discuss what needs to improve, and what is working successfully for the company?
KONE has had a presence in the Middle East for over two decades. Our offices in the region are
38 September 2017
located in the UAE, Qatar, Oman, Saudi Arabia, Egypt and Bahrain. For the rest of the Middle East, we deal through distributors and joint ventures. In 2016, KONE Middle East had more than 1,900 employees (with more than 52,000 employees worldwide).
KONE has been listed on Forbes’ world’s top 100 innovative companies list six years in a row. The company is involved in various project sizes, from small to mega projects in the region. You can find our equipment installed in privately-owned villas as well
With increased urbanisation, cities are becoming more vertical. With this change, KONE aims to provide the best people flow solutions, which covers access control, destination guidance, equipment monitoring and information communication. User-friendly KONE Destination Control Systems boost elevator traffic-handling capacity and better performance, meaning less crowded elevators, shorter travel times and fewer unnecessary stops. KONE information screens can be used inside elevators and on landings to communicate to tenants and building visitors. KONE monitoring solutions
enable easy remote monitoring and configuration of elevators and escalators from a single location. The main benefit of People Flow Intelligence is that it results in less waiting time and more comfort. Not only are the solutions available for both new and existing buildings, but they are also easily adaptable to meet a building’s changing needs. The high-quality, visually consistent accessories and components improve the appeal of the building lobby and elevators. Our endto-end solutions eliminate the need to coordinate with multiple suppliers, saving time and money. How can KONE technology help increase productivity in overall operation?
Innovations such as the KONE JumpLift help increase productivity in overall operation. It uses a mobile machine room that moves up as construction
progresses, resulting in faster construction time and reduction of alternative vertical transportation costs during the construction phase. Overall, it also increases the safety, speed and reliability of the elevator service during construction. The efficiency of people and material flow can be increased by up to 20%. One of the benefits for builders is that the JumpLift speeds up the construction process considerably. It can be used to complement or replace external hoisting systems. As well as being faster and safer, it can also operate in all weather conditions. For building owners, the KONE JumpLift accelerates the whole construction schedule. The building can be completed faster and opened earlier, enabling a faster return on investment, lower interest payments and other indirect cost savings. For workers, there’s significantly less time spent waiting and they no
Intelligent thinking One of the main benefits of People Flow Intelligence is that it results in less waiting and more comfort.
From start to finish Gys van Schalkwyk says that KONE’s teams work closely with their customers, from start to finish on a project, to ensure succesful delivery
“With increased urbanisation, cities are becoming more vertical. KONE aims to provide the best people flow solutions, which covers access control, equipment monitoring and information communication”
longer need to compete for space with building materials, greatly improving on-site logistics. As a fully functioning elevator compliant with the same safety standards as the completed elevator, it also significantly improves site safety. Once construction is completed, changing over to the permanent elevator is quick and straightforward. The JumpLift machinery is replaced by the permanent elevator machinery, the car and landing door materials are finished and the permanent signalisation is installed. We have used the KONE JumpLift on iconic projects such as the Shard in London and Marina Bay Sands in Singapore. Regionally, the KONE JumpLift has been involved in the construction of the Princess Tower, the world’s tallest residential building.
September 2016 39
Case Study
Powering PartnershiPs
GE provides an exclusive case study for Big Project ME on its work at the Az Zour North facility in Kuwait, the country’s first PPP utilities project
The Az Zour North facility is Kuwait’s first independent desalination plant and power station, accounting for up to 20% of the country’s desalination capacity and up to 10% of its energy capacity. Kuwait’s Water Challenge
A quick aerial view of the state of Kuwait brings one of the country’s most pressing challenges into sharp focus –
securing Kuwait’s future The Az Zour North Phase 1 Independent Water and Power Plant (IWPP) is crucial to the country’s plans to secure its water and energy future.
40 September 2017
meeting the water needs of a growing population in a landscape dominated by desert sands. In a recent study, the World Resources Institute ranked Kuwait among the top ten countries globally that are likely to face extremely high water stress by 2040. With average annual precipitation of just 121mm per year and no permanent rivers or lakes, it is no surprise that more than
90% of water for domestic and industrial needs and up to 60% of total water supply in Kuwait is currently met through seawater desalination plants. These desalination plants are energy-intensive. To keep them running and meet the growing demand for electricity across the country, Kuwait’s Ministry of Electricity and Water plans to significantly increase generation capacity in the decades to come.
Az Zour North Phase 1: Securing Kuwait’s Water and Energy Supplies
The Az Zour North Phase 1 Independent Water and Power Plant (IWPP) in southern Kuwait, approximately 100km from central Kuwait City, is one of the most important projects set up to secure Kuwait’s water and energy future. Launched in 2013, the landmark facility was the first public-private partnership (PPP) in Kuwait, with the government’s
Case Study
share at 60% and the remaining 40% owned by a consortium of private owners: France’s ENGIE (17.5%), Japan’s Sumitomo Corporation (17.5%) and Kuwait’s AH Al Sagar & Brothers (5%). With construction completed in December 2015, the desalination plant has a production capacity of up to 107 million gallons a day (MGD) of desalinated water. It comprises 10 multiple effect distillers (MED) and a potabilisation plant to provide drinking water. It accounts for up to 20% of Kuwait’s desalination capacity, making it the largest desalination facility in the country. The power behind the desalination process is provided through a 1.5GW combined cycle
gas turbine (CCGT) power plant which can generate up to 10% of the country’s energy capacity. The power plant is equipped with five GE 9FA gas turbines, two GE steam turbines and five heat recovery steam generators (HRSGs). The plant both feeds electricity into the national grid and helps generate steam for the desalination process. Operations and maintenance services at Az Zour North are carried out by the Az Zour North Operations and Maintenance (AZN O&M) Company, a joint venture between ENGIE and Sumitomo. GE Power provided technical instruction during equipment installation and has a multi-year agreement to provide
maintenance and repairs services for the gas and steam turbines at the power plant until 2034. Unique Challenges for a Unique Region
Forging ahead with a project as unique as the Az Zour North IWPP posed several technical challenges, some very regionspecific. For example, in the Middle East the reliability of operations and efficiency are very important. That is quite different from Europe, where the focus for gas turbines is often preservation, low-load operations and cycling. There were also very specific requirements in Kuwait to be able to run for extended periods of time on liquid fuel instead of gas,
which can lead to issues such as fuel leaks and coking. Maximising the reliability of gas turbines in a harsh desert environment is not easy, but is of utmost importance for the stability of the grid. Remaining on schedule with the construction and delivery of a project of this size – the largest desalination plant in Kuwait – was equally challenging. According to Adel Masaad, Gulf & Pakistan leader for GE’s Power Services business: “The main challenge was that the first gas turbine was contractually required to be in commercial operation a little over 18 months after signing the EPC contract, followed by the second and third shortly after. This required extensive
remaining on schedule Remaining on schedule with a project of this size and complexity was a considerable challenge. GE Power provided technical instruction during the equipment installation and has a multi-year agreement to provide maintenance and repair services.
September 2017 41
Case Study
PPP success The success of the PPP model employed with the Az Zour North Phase 1 IWPP has also set a precedent for future growth paths in Kuwait’s utilities sector.
“Subsequent deliveries were well ahead of requirements, meaning that critical project milestones were achieved and Phase 1 of the North plant began operating at full capacity within two years of the project’s launch” work to get the civil, mechanical and electrical infrastructure and balance of the plant to be ready to support commissioning of the first gas turbine.” The logistics of having all the required equipment delivered on time was also critical to the success of the project. “Despite the tight deadlines, the first gas turbine and generator were placed on foundations in July 2014, eight months after contract signature,” says Masaad. “Subsequent deliveries were well ahead of requirements, meaning that critical project milestones
42 September 2017
were achieved and Phase 1 of the North plant began operating at full capacity within two years of the project’s launch.” Unlocking Future Efficiencies and Growth
In an effort to continuously improve operations, AZN O&M and GE have now started to explore means to further strengthen the reliability and performance of assets at the Az Zour North facility. With GE successfully completing the digital transformation of Kuwait Ministry of Electricity
& Water’s Sabiya CCGT power station earlier this year, GE and AZN O&M are together exploring the possibility of adopting new digital technologies at Az Zour North to further strengthen resource utilisation and productivity at the site. These digital solutions can give industrial businesses a complete, integrated view of assets and equipment. Connected machines equipped with data sensors can collect vast amounts of information into a centralised and secured data platform. The analysis of
this data can provide insights to predict and diagnose equipment problems before they happen, reducing unplanned downtime. The success of the PPP model employed with the Az Zour North Phase 1 IWPP has also set a precedent for future growth paths in Kuwait’s utilities sector. Under the 2035 development plan, the Kuwaiti government has announced plans to boost foreign direct investment through publicprivate partnerships, adopting a more synergistic approach to driving long-term economic growth and diversification.
Lighting
In the spotlight Studies have shown that worker productivity increases in environments that have an abundance of natural light.
The ImporTance of LIghT
Big Project ME speaks to lighting experts to find out how mimicking natural light can help improve worker performance and morale
Numerous studies have preached the positive effects of natural light in the workplace. In the scientific community, it’s close to an accepted fact that workers in windowless spaces tend to underperform compared to those who have access to plenty of natural light.
Back in 2013, researchers at the Interdepartmental Neuroscience programme at Northwestern University in Chicago released a study that highlighted just
44 September 2017
how detrimental working in a windowless environment can be. Titled Impact of Workplace Daylight Exposure on Sleep, Physical Activity and Quality of Life, the study highlighted the strong relationship between workplace daylight exposure and office workers’ sleep, activity and quality of life. It found that compared to workers in offices without windows, those with windows
received 173% more white light exposure during work hours and slept an average of 46 minutes more per night. Workers without windows scored lower than their counterparts on quality of life measures related to physical problems and vitality, while also registering poorer outcomes in measures of overall sleep quality, efficiency, disturbances and daytime dysfunction. “The extent to which daylight
exposure impacts office workers is remarkable,” says Ivy Cheung, the study’s co-author. “Day-shift office workers’ quality of life and sleep may be improved via emphasis on light exposure and lighting levels in current offices, as well as in the design of future offices.” While there has certainly been a shift towards embracing natural light from a design and architectural perspective, lighting specialists and manufacturers
Lighting
have also embraced the change in outlook, offering products that mimic natural light and work in sync with circadian rhythms, says Regina Santos, associate at Godwin Austen Johnson. “The positive effect of natural light on the wellbeing of people has been well documented. Artificial lighting systems that mimic daylight aim to improve our circadian rhythm and our biological response through the production of melatonin, the hormone that regulates our sleep cycles,” she tells Big Project ME. “We tend to underestimate the importance of light on our wellbeing and just how much the light/dark cycle, or circadian rhythm, affects our moods. The
availability of tuneable white light fixtures allows this to be implemented in projects today, improving the comfort and performance in workspaces and schools, as well as the quality of the overall ambiance. The improvement of lighting control systems, and the connectivity which allows people to have access to information and more control of their environment, are also part of the trend that makes this type of lighting application possible.” One company making significant strides is Zumtobel, an Austrian light manufacturer. Its Active Light product range allows architects and interior designers to blend intensity, colour and direction at the right time to support the positive effects of natural light. “Light is now regarded as a key factor and one of the most significant design elements for the satisfaction and motivation of employees in the workplace,” says Veit Mueller, SVP at Zumtobel MEIA. “A user study conducted by Zumtobel, in cooperation with the Fraunhofer IAO Research Institute, into the perceived quality of light in office workspaces has only served to emphasise this fact. In terms of light colour, the study also revealed different preferences based on age, working hours and individual type.” “Technology will probably never be able to completely replicate the positive influence of nature. However, research into the impact of artificially created natural scenes has shown signs of a beneficial effect.” Although Mueller concedes that office lighting products will always lack the dynamic change and adjustment of natural light, he points out that the Active Light range is oriented around natural daylight and the changes in
“New possibilities in terms of digitisation and controls also open further opportunities, helping the light of the future automatically adapt to particular tasks and respond spontaneously to gestures and groups of people”
colour temperature and intensity that occur during the day. “In this way, we can provide optimal support for the human biorhythm. The default illuminance of 500 lux at the workplace stipulated by the standards is often perceived as insufficient, demonstrating how the lighting level should be increased for specific activities or at certain times of day. “Technology can integrate changing light colours into the lighting scenario as a highly effective design element. That means cold-white lighting moods until early afternoon, followed by lower-intensity warmer light hues as evening approaches. New possibilities in terms of digitisation and controls also open further opportunities, helping the light of the future automatically adapt to particular tasks and respond spontaneously to gestures and groups of people,” he asserts. Sergio Padula, technical director at iGuzzini Middle East, adds that the Italian lighting firm has been conducting research
a significant design element Veit Mueller says that light is now regarded as a key factor and one of the most significant design elements for the satisfaction and motivation of employees in the workplace.
September 2017 45
Lighting
into the field of biodynamics since 1988, aiming to understand the relationship between light and human biology. The results have informed and inspired the company to produce systems and products that have delivered significant results. “The studies carried out with the Lighting Research Center of Troy were based on the relationship between the variation of light features and the circadian rhythms of living beings,” he says. “In 1992, our studies gave origin to a patent and a biodynamic lighting system used to reproduce the natural variations of daylight in artificial spaces.” “Not only was the system able to improve life and work quality in enclosed spaces such as control rooms of petrochemical plants and call centres, but it also contributed to the rehabilitation activities of patients who had just come out of a coma,” he asserts. With the results confirming iGuzzini’s initial hypothesis – that a dynamic lighting system capable of generating biologically significant light will improve
“We tend to underestimate the importance of light on our wellbeing and just how much the light/dark cycle, or circadian rhythm, affects our moods. The availability of tuneable white light fixtures allows this to be implemented in projects today, improving comfort and performance”
mimicking daylight Artifical lighting systems that mimic daylight can improve circadian rhythms and biological responses, Regina Santos says.
work performance, compared with a constant lighting system – Padula says targeted use of light makes it possible to stimulate the human organism. “The discoveries made by photobiology at the time were already suggesting revolutionary ways of using artificial lighting.
User-focused luminaires Today’s technology can help designers and manufacturers come up with user-focused and user-friendly lighting systems.
46 September 2017
Experimental tests proved that the functions of the human body are regulated according to circadian rhythms. “The most interesting results to emerge from this chrono biological research related to confined environments (submarines, underground environments, hyperbaric chambers, space capsules, artistic laboratories), precisely because sunlight is completely excluded from these places. The absence of sunlight not only weakens our organism, but also weakens our capacity to perceive our surroundings and influences our entire being, including from an emotional point of view.” It’s easy to see why light is now regarded as such a key factor in the design and development of office spaces. Mueller adds that the technology can go even further, with users taking active control of their environment. “Today’s technology can ensure more user-focused and userfriendly operation of luminaires,” he says. “For example, at the Zumtobel Group office, every
Lighting
desk cluster is able to control its lighting individually. Employees can dim their cluster’s lights up or down by simply using their smartphones or computer desktops, and in some clusters they can even choose the colour temperature they prefer.” The initial setting in a cluster imitates the natural rhythm of daylight. The day starts with a very warm 2,700 Kelvin in the early morning, simulating the sunrise. From 7am towards lunchtime, the colour temperature gradually adjusts to 4,000-5,000 Kelvin, synchronising circadian rhythms and suppressing melatonin release. Towards the end of the day, the lighting turns warmer again, allowing the release
of melatonin and preparing the body for the rest phase. “This is possible through intelligent lighting controls and sensors, which are furthermore crucial to maximise energy savings. Looking at the specs and designs of future projects, the Middle East is making progress on including intelligent sensors and controls, and we can finally see a larger shift towards using LED technology. “Regardless of the application – whether art and culture, hospitality and wellness, office, industry and engineering, or presentation and retail – products can be developed specifically to help all industry professionals to choose the right product for the right application,” he concludes. Stimulating light Sergio Padula says that targeted use of light makes it possible to “stimulate the human organism”.
PPE SPECIALISTS
MANUFACTURING FOR SAFETY HEAD PROTECTION RESPIRATORY PROTECTION EYE PROTECTION HEARING PROTECTION WORKING AT HEIGHT Tel: +44 (0)1993 826050 export@jsp.co.uk www.jsp.co.uk
September 2017 47
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Gulf lED markEt shinEs Manufacturers report full order books and say they have high hopes of continued success, as the industry gears up for Light Middle East 2017 Global lighting suppliers have reported a significant increase in business across the Gulf Cooperation Council (GCC) in the last 12 months, with the region’s LED penetration estimated to surpass 50% by 2020, according to industry sources. The energy-efficient and eco-friendly LED (light emitting diode) technology is backed by supportive government regulations encouraging its uptake, as are declining prices and largescale projects in architectural, industrial, hospitality, outdoor and residential applications. According to analysts Frost & Sullivan, LED comprised around 38% of the GCC’s $910 million lighting fixtures market in 2015, with its penetration expected to grow 17-18% annually over the next three to four years. In turn, many lighting manufacturers enjoyed full order books in 2016, and have high hopes for more of the same at the Light Middle East 2017 trade fair, which runs from 17-19 October at the Dubai International Convention and Exhibition Centre. US-headquartered Fulham will be one of more than 370 exhibitors from 31 countries set to descend upon the region’s premier exhibition for architectural lighting design and technology, and is looking to build on its successful participation at previous editions. “2016 was a record revenue year for Fulham, in which we acquired a European LED driver and a controls company this year and developed many new products for commercial LED applications,” said Srinavasan Sudarshanan, the general manager at Fulham. 48 September 2017
Equal split The regional LED market is split evenly between new construction and retrofit, exhibitors say.
“The regional LED market today is about 50% new construction and 50% retrofit. Customers are increasingly aware that LED lamps and tubes that use existing fluorescent, HID or induction power systems are not the best way to reduce energy use. “Therefore, we’re seeing more and more use of complete retrofits – either via the luminaire or from retrofit kits that go in existing luminaires. While the market continues to grow at 20%, we see emergency lighting systems and controls as our next growth areas,” he added. European companies PUK from Italy and Spanish manufacturer Airfal are also returning exhibitors this year to Light Middle East, with both having landed major projects in the region over the last 12 months. “The Middle East is an
important market that appreciates the ‘Made in Spain’ product that we offer,” said Manuel de Dios Ariza, Airfal’s export manager. “We’re going to show our new light fittings for specific environments such as farming areas, greenhouses and livestock zones, as well as our latest developments in EX lighting.” “Thanks to Light Middle East 2016, we signed major projects such as the lighting of the Lebanese National Library with our waterproof light fittings, as well as the Eco Mall in Iran, which we’re very proud of. We got really good results last year, and we’re sure this year will be the same.” Simone Ferrari, PUK Italia’s Export Manager, said the company supplied lighting fixtures for Dubai’s City Walk and Legoland developments, both of which came through contacts established at Light Middle East 2016.
“Over the last 12 months, we enlarged our range of outdoor lighting fixtures and started important cooperation with famous Italian design studios to combine our technical know-how with their design skills,” said Ferrari. Other key exhibitors returning to Light Middle East in 2017 include 3S International from Canada, Bjb from Germany, and Italian manufacturers FIVEP and Forma Lighting, while major UAE players will be spearheaded by Al Zubair, Decolight and Light Factor Enterprise. Those hoping to make a big splash on debut include Elettrico Lighting from the UAE and ELT from Spain. Now in its 12th edition, Light Middle East 2017 returns with a host of headline features such as the Light Middle East Awards, where the spotlight will shine on outstanding regional and global lighting projects, and the Think Light Conference, a twoday summit bringing together designers, architects, engineers and developers to share insights, inspiration and thought leadership in the lighting industry. Other features include Light. ication, the Middle East’s only competition nurturing the next generation of regional lighting designers, architects and engineers, and Ready Steady Light Middle East, a live competition during the show where teams are given 90 minutes to design and install a lighting scheme with a range of provided equipment. More information about Light Middle East is available at: www.lightme.net.
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CitysCape global 2017
Tom Rhodes, exhibition director at Cityscape Global, on why this year’s edition is the best place to find investment and business opportunities
l market Key driver for the loca to Expo 202 0 is expected local spur investment into the market, Rhodes says.
How would you describe the performance of key real estate markets in the Gulf region over the last 12 months? Over the last 12 months, the real estate market in Dubai has experienced a period of stability as the market has readjusted to current economic factors such as low oil prices. We have seen the UAE, as well as other countries in the region, increasing their efforts to shift away from their dependence on oil revenues, which now constitute around 2% of Dubai’s economy. This means the ‘new normal’ price for oil – around $50 per barrel – will have a reduced effect on the real estate market when compared to oildependent economies in the region. Many investors identify Expo 2020 as the key driver for the local market. We have seen new projects launching, such as DAMAC 50 September 2017
Properties’ Akoya Oxygen. Over the past year, more than 1,200 contracts have been awarded for Expo 2020, with 47 construction contracts worth AED 11 billion awarded in January alone. We have also seen the impact that Brexit has had on the regional real estate market. With political policies still in the balance, some investors are looking to wait and see how the coming months unravel. In fact, this could be beneficial to the UAE, as we have seen an increase in investors from different markets in the UAE. Juwai.com, a top Chinese real estate website, for example, recorded an increase in enquiries for UAE properties of over 80% between 2015 and 2016. As geopolitical events continue in Europe and beyond, the UAE could be seen as a more and more attractive market for a safe
investment from foreign markets. Many assume that Ramadan falling in the summer period affects businesses including the real estate sector. However, according to Propertyfinder group, Dubai reported a 45% increase in value for firstquarter transactions compared to last year, and it predicts that summer months will follow this trend, opposing what is usually expected during this period. What challenges and opportunities do developers face in the current climate? As the population of Dubai is set to increase in the lead-up to 2020, developers are faced with the challenge of appealing to the mid-market segment of investors. Affordable housing is a recurring theme at Cityscape events, and we’ve seen a number of developers
such as Bloom and Danube showcase projects that aim to provide a balance of well-crafted housing units and pricing points. We expect to see more affordable housing projects announced at this year’s event, as developers seek to corner the gap in the market to accommodate the expanding mid-market investors who make up a majority of Dubai’s population. We’ve seen from past reports that up to 70% of Dubai residents rent properties rather than owning. This is in stark contrast with some European countries such as the UK, where 64% of the population own property. High entry points to owning a residential unit and combating market uncertainty are two challenges that developers have faced, but Dubai real estate agents have recently seen a pick-up in interest despite the cyclical slowdown during the summer months. Additionally, Dubai Land Department and RERA have implemented subsequent regulations in order to increase investor security and provide transparency to all real estate operations in the emirate. Part of this is the inclusion of the Dubai Brokers app, which offers current data on licensed brokers in operation, and the change to how real estate properties can be advertised in a bid to reduce fake adverts and scams. Cityscape Global is taking place 11-13 September 2017 at the DWTC. To find out how you can get involved, please contact the Cityscape Global team at info@cityscapeglobal.com
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Reshaping Ksa Real estate
Minister of Housing in KSA will support launch of Restatex Cityscape Riyadh It’s set to be a watershed year for the kingdom’s real estate market with promising government policies aimed at boosting the property sector, coupled with the launch of Restatex Cityscape Riyadh in September, which will be held under the patronage of His Excellency Majed Al-Hugail, Minister of Housing in Saudi Arabia. Over the last year, the Minister of Housing and the government have ramped up efforts to address the real estate sector in the kingdom – one of the major tenets in the country’s Vision 2030 plans – with the Minister collaborating with developers to increase the supply to tackle the growing demand for affordable housing, and with it the rate of home ownership among citizens. The government has also
Vision 2030 plans The Minister of Housing and the KSA government have ramped up efforts to address the real estate sector in the kingdom - a major tenet of the country’s Vision 2030 plans.
encouraged mortgage lending and introduced a white land tax to push more undeveloped urban land onto the market. Committed to seeing the real estate industry grow and looking to spur investment in the country, the Minister will be supporting this year’s Restatex
Cityscape Riyadh, 27-30 September at the Riyadh International Convention & Exhibition Centre. “The broad bid to reshape and boost the kingdom’s real estate sector, under its National Transformation Programme (NTP) and Vision 2030, has been met with overwhelming support
and we will see this support realised at this year’s exhibition,” said Ahmed Zakaria, Exhibition Director at Restatex Cityscape Riyadh. “Under the NTP, the kingdom is looking to double the contribution that property makes to its GDP to 10% by 2020 and treble the percentage of residential units developed by approved real estate developers to 30%.” Held in parallel to the exhibition, the Restatex Cityscape Riyadh Workshops will provide a market update, tackle the country’s most pressing real estate topics and provide insight from government authorities and real estate experts from across the region. Following the exhibition in Riyadh, Restatex Cityscape Jeddah will take place early next year, 6-9 February at the Jeddah Centre for Forums and Events.
infRa Oman RetuRns
Sultanate to host seventh edition of the building and construction expo Infra Oman – Oman’s biggest and only exhibition related to construction and infrastructure – will take place for the seventh time from 9-11 October 2017 at the Oman Convention & Exhibition Centre. Infra is supported by the Ministry of Transport & Communications, the Sultanate of Oman and the Muscat Municipality. Infra Oman, one of the largest building and construction expos in the Middle East, has been continuously defining the industry’s development for the last six years. It is considered the annual meeting place for
Defining the indusry One of the largest building and construction expos in the Middle East, Infra Oman will return for the seventh time.
industry leaders, suppliers and buyers in the Sultanate of Oman. Infra Oman has proved to be an ideal starting point not only for local companies, but also for foreign entities that are more determined to be part of Oman’s growing market. The exhibition will focus on Construction Requirements, Green & Future Buildings, Heavy Equipment & Technologies, Hotel & Tourism Projects, Industrial Free Zones, Industrial Manufacturing, Power & Water Technologies, Tools & Equipment, Transportation & Logistics, Infrastructure Projects – Roads, Airports and Railways
& Ports – Build & Supply and other Development Projects. Co-located with Infra Oman is Electro Oman. Oman’s leading exhibition in the Power, Electricity and Lighting sectors. It is dedicated solely to energy and clearly partitioned to cover all aspects of the sector, including electricity, water, lighting and HVAC, with a special emphasis on sustainable solutions and renewable energies. For exhibiting and sponsorship enquiries, please contact Marvin Pinto on +96897181987 or infra@ lnimrexpo.com. Visit www. infraoman.com for more details. September 2017 51
Tenders
Top tenders Jeddah – Jazan Coastal Railway PRoJeCt Budget $2,000,000,000 Project number WPR2218-SA territory Saudi Arabia Client Saudi Railways Organisation (Saudi Arabia) address Bldg S-24, Diplomatic Quarter City Riyadh 11452 Phone (+966-11) 250 1111 Fax (+966-11) 480 7517 email info@sar.com.sa website www.sar.com.sa description Construction of a 660km coastal railway line Period 2018 status New Tender tender Categories Public Transportation Projects tender Products Railways
tender Categories Leisure & Entertainment, Construction & Contracting tender Products Retail Developments
City CentRe al JaziRa PRoJeCt Budget $381,200,000 Project number WPR2230-U territory Abu Dhabi, United Arab Emirates Client Majid Al-Futtaim Properties (Dubai) address Majid Al Futtaim Tower 2, Deira City Center City Dubai Phone (+971-4) 294 9999 Fax (+971-4) 294 2555 website www. majidalfuttaimproperties.com description Construction of a shopping mall Period 2021 status New Tender design Consultant AECOM Middle East (Abu Dhabi)
PhotovoltaiC solaR PoweR Plants PRoJeCt – BenBan Budget $190,000,000 Project number MPR1549-E territory Egypt Client Egyptian Electricity Transmission Company (EETC) address Abassia, Nasr City 11517 City Cairo Phone (+20-2) 2261 8579 website www.eetc.net.eg description Construction of three photovoltaic (PV) solar power plants with a total capacity of 165.5MW Period 2018 status Current Project tender Categories Power & Alternative Energy
tender Products Photovoltaic Plants, Solar Energy
solaR PoweR Plant PRoJeCt – sino-oman industRial City (Phase 1) Budget $94,000,000 Project number WPR2253-O territory Oman Client name Duqm Special Economic Zone Authority – SEZAD (Oman) address Bareeq Al Shatti City Muscat PC 103 Phone (+968) 2450 7500 Fax (+968) 2458 7400 email sezadtenders@duqm.com website www.duqm.gov.om description Construction of a solar power plant with a capacity of 400MW Period 2019 status New Tender tender Categories Power & Alternative Energy tender Products Solar Energy
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
52 September 2017
We have been attending the Big Project ME Awards for a number of years now and this is certainly one of the industry’s leading events. The Big Project ME Awards commends the best of the region’s construction and building industry and we truly appreciate being recognised as one of the top performing contractors in the Middle East.
MARCUS TRUSCOTT
MANAGING DIRECTOR – MIDDLE EAST MULTIPLEX CONSTRUCTION
27 November 2017 19:00 - 23:00 Habtoor Grand Dubai Al Andalus Ballroom United Arab Emirates bigprojectmeawards.com
Tenders
Middle East tenders Company (Saudi Aramco) City Dhahran 31311 Phone (+966-13) 872 0115 Fax (+966-13) 873 8190 / 874 1655 email supplierHelpDesk@ aramco.com website www.saudiaramco.com description Construction of a natural gas liquids fractionation unit status New Tender tender Categories Oilfields & Refineries, Gas Processing & Distribution tender Products NGL Plants
UAE BelgRavia 5 Residential Building PRoJeCt – JumeiRah village CiRCle Budget $20,000,000 Project number WPR2271-U territory Dubai, United Arab Emirates Client Ellington Properties Development LLC (Dubai) address 16th Floor, Burlington Tower, Business Bay City Dubai Phone (+971-4) 278 0888 Fax (+971-4) 554 8310 email info@ellingtongroup.com website www.ellingtongroup.com description Construction of a residential building comprising a ground floor, 4 parking levels, 16 additional floors and a roof Period 2018 status New Tender tender Categories Prestige Buildings tender Products Residential Buildings
al mutlaq toweR PRoJeCt – al KhoBaR
nestle wateR FaCtoRy – mussaFah Budget $27,200,000 Project number WPR2269-U territory Abu Dhabi, United Arab Emirates Client Higher Corporation for Specialised Economic Zones – ZonesCorp (Abu Dhabi) City Abu Dhabi Phone (+971-2) 550 0000 Fax (+971-2) 550 0550
email customer.service@ zonescorp.com website www.zonescorp.com description Construction of a water factory Period 2018 status New Tender tender Categories Industrial & Special Projects tender Products Factories
Saudi Arabia natuRal gas liquids (ngl) FRaCtionation unit PRoJeCt – maRJan oFFshoRe oilField & onshoRe FaCility Project number WPR2273-SA territory Saudi Arabia Client Saudi Arabian Oil
Project number WPR1799-SA territory Saudi Arabia Client Almutlaq Group (Saudi Arabia) address Al Aqariya Office Complex, Tower No. 1, 5th Floor, Al Malaz, Salahuddin Al Ayoubi Street City Riyadh 11431 Phone (+966-11) 479 2100 Fax (+966-11) 477 5677 email amgc@almutlaq.com website www.almutlaq.com description Construction of a 25-storey apartment tower with two parking levels and a service level, along with a ground and mezzanine floor comprising at least 10 different shops status New Tender tender Categories Prestige Buildings tender Products Commercial Buildings, Residential Buildings
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
Oman
Kuwait
Iraq
national BotaniC ReseRve PRoJeCt
al salam hosPital al ahmadi PRoJeCt
huwaiza oil Field develoPment PRoJeCt
Project number WPR2257-O territory Oman Client Royal Court Affairs (Oman) City Muscat PC 113 Phone (+968) 2439 0009 Fax (+968) 2439 0001 email tawasul@rca.gov.om website www.rca.gov.om description Development of a botanic garden status New Tender tender Categories Agriculture & Irrigation, Construction & Contracting, Municipal Services tender Products Gardens/Parks Development & Maintenance
Project number WPR1655-K territory Kuwait Client name Al Salam International Hospital (Kuwait) City Dasman 35151 Phone (+965) 183 0003 Fax (+965) 2254 0167 email hr@sih-kw.com website www.sih-kw.com description Construction of a new hospital comprising 120 beds, providing inpatient and outpatient services covering most of the diagnostic and medical treatment divisions Period 2018 status Current Project tender Categories Construction & Contracting, Medical & Healthcare tender Products Hospitals
Project number WPR2155-IQ territory Iraq Client Missan Oil Company (Iraq) address Amarah City Centre City Awwashah Phone (+964-4) 331 3472 Fax (+964-4) 331 3471 email moc_oil@moc.oil.gov.iq website www.moc.oil.gov.iq description Development of an oil field with estimated reserves of more than 1 billion barrels of oil status Current Project main Contractor China National Offshore Oil Corporation (CNOOC) tender Categories Gas Processing & Distribution, Oilfields & Refineries tender Products Oilfields Exploration & Development
Bahrain
Jordan RaPid tRansit Route ConstRuCtion â&#x20AC;&#x201C; amman Bus RaPid tRansit Budget $7,000,000 Project number MPR1548-J territory Jordan Client name Greater Amman Municipality (Jordan) City Amman Phone (+962-6) 463 6111 Fax (+962-6) 464 9420 email info@ammancity.gov.jo website www.ammancity.gov.jo description Construction of a bus rapid transit route status Current Project main Contractor Haddadin Engineering Company (Jordan) tender Categories Public Transportation Projects tender Products Roadways
maRassi shoRes ResidenCes PRoJeCt â&#x20AC;&#x201C; maRassi al BahRain Project number WPR2261-B territory Bahrain Client Eagle Hills (Bahrain) address Marassi Al Bahrain Sales Centre, Diyar Al Muharraq City Manama Phone (+973-7) 789 0020 email info.marassialbahrain@ eaglehills.com website www.eaglehills.com description Construction of an 11-storey residential building comprising 287 units Period 2019 status Current Project tender Categories Construction & Contracting tender Products Residential Buildings
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
September 2017 55
Last Word
The Future of Design Consulting without Humans Limah Design’s Jason Lewis sheds light on the role and opportunities of consultants in a future dominated by artificial intelligence We already have seen the rise of BIM in our industry, and while it’s not AI, it is connecting teams at a greater level than ever before. From these beginnings, the new wave of quantum computing will allow us to communicate faster in real time as part of collaborative teams, with all work visualised instantly on VR headsets.
From here, it’s not a great leap to create the algorithms that will automate complex sets of tasks, thereby making a number of disciplines in architecture either obsolete or dramatically changed. Disciplines based on calculations and data, such as engineering and costing, will likely be the first needing to change and adapt. Deep learning could be one of the biggest changes for design consulting. While today any single designer may come up with dozens of concepts based on a single theme – which may take from hours to months to complete – deep learning with the correct parameters
56 September 2017
can bring to light thousands of concepts in mere seconds. These concepts could be developed further by AI into fully working drawings, and could then be sent directly to 3D printers, where construction could begin almost instantly. The question for designers and design firms then becomes: What role will they play in this automated future? I contend that designers will always have a role. Creativity and curiosity cannot easily, if ever, be simulated. I also believe this is a time of great opportunity for those who embrace and lead the charge into these new areas. The future will be in the holistic and strategic approach to design. Those who focus on the humans who actually use these spaces will thrive. This human-focused design is what we call experience design. It is design that first digs deep into human needs, wants and desires. In our work, experience design is a methodology to make
people’s interactions with complex spaces more enjoyable. Environments and products are developed around these needs, thereby making environments that are more connected than ever to humans. How often today do we visit a mall or healthcare facility, and likely our first step is to go online to get information or directions to these places? Upon our arrival, however, we feel disconnected from the space. The digital experience had nothing to do with the space, the brand we see has nothing to do with the architecture, and we are not greeted by any memorable or special interaction with staff. We are left simply visiting a building. This building has made no connection to us personally or any digital devices or wearables we use, and therefore it’s just another stop along a journey of countless other built spaces. Much of this has to do with the current
development cycle of architecture. Developers engage architectural teams and later bring on management teams to manage these spaces and the end customers. Due to this process, often little to no primary research is done, no research or interviews with potential end users to gain insight into what they are looking for in their future built spaces. A small group of architects and specialist consultants see that this model won’t result in exceptional experiences and connections to end users. Instead – from day one in the planning process – they combine all the disciplines from architecture, landscape, product design, facility management, customer service design and experience design. This approach has the goal of making environments more useful, more usable and more enjoyable. That means a greater bottom line for developers and longevity of developments.
Just as the architects and designers of the future will have a greater focus on human users, so too will the most successful developers understand that merely building a site is no longer a mark of success. Success is rather the creation of an exceptional experience that makes for truly great architecture and design. I believe that a future where the business of design consulting is done without humans will not survive. Technology will certainly change how we do our day-to-day work, and may even result in reduced workforces and rapid development of projects. However, creativity and a deep understanding of human need and desires is the area most underserved in architecture today. As we go into the future, I see more amazing projects being developed that will be more than mere spaces. Instead, they will connect to me on a personal level and create exceptional human experiences.
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