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DECEMBER 2010

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Road to recovery Boom and bust: The lessons learned and 2011’s most lucrative construction markets revealed

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DECEMBER

Contents REGULARS Editor’s letter 4

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News bulletin 6 Event insider 10 Exclusive news and analysis from The Big 5 2010

In focus 15 Why the value of the US greenbuilding market has doubled

News analysis 16 The 2010 Middle East BIM Market Survey, by BuildingSmart ME

22

Supplier hotseat 43 Byrne Equipment Hire gears up to eexpand its Gulf operations

Case study 52 The cultural and community values behind the design of Kuwait’s $86 billion City of Silk development

Career ladder 55

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Construction Products Holding Company director says its time to become an ‘employer of choice’

Tenders 57 Diary 61 Tea break 62

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FEATURES 20 Talk Drake and Scull International CEO Khaldoun Tabari comments exclusively on the company’s expansion plans

22 On site The Big Project visits three of TAV Construction’s ongoing Dubai projects: Marina 101, Emirates Financial Towers and Sulafa Tower

26 Road to recovery Industry professionals uncover the lessons learnt in 2010 and reveal the most lucrative construction markets to tap in the New Year

37 Project update Damac Properties vice president provides an update on one of the region’s largest mall projects, Park Avenue, in Cairo

38 Iconic structures The key developments Qatar is pursuing as it ushers in a new age in stadium design

47 Trends Four of the GCC’s technologicallyminded lighting suppliers debate the most energy-efficient way to illuminate a building

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EDITOR’S COMMENT

Publisher Dominic De Sousa Chief operations officer Nadeem Hood Associate publisher Liam Williams liam@cpidubai.com TEL: +971 (0)4 440 9158 Chief marketing officer Kimon Alexandrou kimon@cpidubai.com TEL: +971 (0)4 440 9149

Peace talk

A

s a believer that something good comes out of most challenging or difficult situations, it was reassuring to hear construction professionals quoted in this month’s ‘Road to recovery’ story reel off the valuable lessons learnt during the past year.

I was surprised, however, to hear the age-old problem of communication — or lack of it — blamed for the downfall of many of the region’s projects.

In the age of motorised vehicles, budget airlines, the Blackberry, iPhone, video conferencing, Facebook and a range of construction technologies designed to bring people closer together, you’d think communication would be impossible to get wrong.

But no, team dynamics are still a major issue, with poor relationships between clients, architects and contractors often resulting in unmet objectives and unnecessary costs.

The increase in legal disputes among construction parties in 2010 is a clear indicator of — not only the financial pressures of late, resulting in delayed payments and breach of contracts — but of an inability to talk through and resolve problems amicably.

Arabtec CEO Thomas Barry summed up the situation during the ‘Resolving construction disputes’ seminar he presented at The Big 5 last month, which, based on the message conveyed would have

Group advertising manager Alex Benndiouis alex@cpidubai.com TEL: +971 (0)4 440 9154 GSM: +971 (0)50 458 9204

perhaps more aptly been named ‘Lawyers are the only winners in construction disputes’.

Not a stranger to costly legal cases, Barry said arbitration or litigation should always be a last resort.

As soon as a potential dispute bares its teeth, he recommended nipping it in the bud by bringing everyone together for a cup of coffee, ending hopefully with a handshake.

While this method may sound simple and a tad idealist, in many cases disputes start with a straightforward misunderstanding that can be explained when parties talk to one another.

There is hardly a construction project that doesn’t have some sort of dispute, he said, but people just resort to legal action too often now.

Of course not all problems can be resolved over a cup of coffee, but amicable settlements can also be achieved through direct negotiation, if this fails mediation can be successful and only once all of these avenues have been explored should expensive arbitration or litigation be considered.

This is sound advice, especially for those exploring new markets on their road to recovery.

As Barry said, let’s hope “common sense” will prevail and the industry won’t forever be embroiled in the ‘who’s right and who’s wrong’ debate.

On that note, here’s to a prosperous, and peaceful, New Year.

Louise Birchall Editor

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Editor Louise Birchall louise@cpidubai.com TEL: +971 (0)4 440 9118 GSM: +971 (0)56 605 8091 Assistant editor Melanie Mingas melanie@cpidubai.com TEL: +971 (0)4 440 9117 GSM: +971 (0)56 758 7834 Designer Marlou Delaben Photographer Helen Riley Abdel Kader Webmasters Troy Maagma Elizabeth Reyes Jerus King Bation Erik Briones Printed by Printwell Printing Press LLC Published by

Head Office PO Box 13700 Dubai, UAE Tel: +971 (0)4 440 9100 Fax: +971 (0)4 429 3654 Web: www.thebigprojectme.com © Copyright 2010 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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NEWS BULLETIN

Batt O’Keeffe, Irish minister for enterprise, trade and innovation, opened the firm’s new office.

Irish Arabian consortium eyes Saudi Arabia public investment plan

New company formed to target US $400 billion of public investments

Dubai green building codes are to be launched in the emirate next year.

Dubai Government to introduce new Green Building Code Phased introduction of Dubai’s sustainability guidelines expected to begin next year Dubai’s new Green Building Code, which has taken two years for the municipality to finalise, will be introduced from in 2011.

The code targets the use of environmentally aware design, energy-efficient materials, methods and “behavioural changes”.

The regulations were approved by the Dubai Executive Council last week and announced during a press conference last month.

The phased approach is to educate the construction industry and public, rather than impose

compulsory regulations, according to the municipality.

It follows a directive from 2007

by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, that all buildings that are constructed in Dubai from 2008 should meet the green building standards.

It was also reported that the government is currently exploring the option of offering incentives for developers as

Emaar profits down in 2010 Profits posted by Emaar for Q3 2010 fell 7% from 2009 Emaar’s net profits dropped to US $166.8 million in quarter three of this year, down 7% compared to the same period last year.

However, Emaar said revenues for the same period increased 43%, which the company claimed is proof of a “new phase of growth”.

The increase is credited to the handover of units in Burj Khalifa in the first half of 2010, according to reports by the Associated Foreign Press.

“Our strategic developments in shopping malls and hospitality are now yielding strong recurring revenues, which highlights our commitment to investing in the long term by adding value to our stakeholders,” Emaar chairman Mohamed Alabbar commented in a statement.

“The challenges of the global financial slowdown are behind us and

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implementation is said to require “huge investments”.

“If you have a 100% green building and if you have a poor management team internally, you cannot achieve the goal,” said Hussain Nasser Lootah, director general of the Municipality.

“Our aim is not to increase the cost. We want to cooperate in [designing] the building, in the selection of the materials and — most importantly — in the management ofthese buildings,” he added.

A consortium between two Irish construction firms and a Saudi Arabian conglomerate has been confirmed to secure long-term projects in KSA. P Elliott & Company Ltd and Wills Bros Ltd have formed Alzahid Elliott Wills Construction, in conjunction with Saudi conglomerate the Alzahid Group. The group’s new office in Al Khobar’s Silver Tower was officially opened by Batt O’Keeffe, Irish minister for enterprise, trade and innovation, last month. He called the collaboration “sensible and strategic in the context of Saudi Arabia’s rapidly growing construction sector”.

“P. Elliott and Wills Brothers are two of Ireland’s leading construction and civil engineering firms. By partnering with the Alzahid Group, one of Saudi Arabia’s largest construction companies, the two Irish firms are better positioned to win a larger share of the construction market.

The government is implementing a US $400 billion public investment plan which, coupled with high activity levels in the private sector, means that business opportunities for Irish firms in the construction sector here are very strong, O’Keeffe explained. we are entering a new phase of growth,” he added.

The government-owned company has increased the diversity of its interests, with its Saudi Arabian subsidiary Emaar Middle East recently signing two power infrastructure contracts with the Saudi Electricity Company.

The contracts will cover Jeddah Gate and Al Khobar Lakes, both situated in Dammam.

In reports, Emaar described the investor response as “overwhelming”, although the company refused to comment on the value of the contracts.

Dubai Index down 5.4% year-on-year Jürgen Beigel, left hand side, with the panel at the Sustainability in the Middle East conference.

“Mindset” is preventing green building Developers urged to change their attitudes towards sustainability Energy consumption in new buildings and villas could be reduced by 40% if developers “change their mindset”, according to Masdar ambassador for sustainability Jürgen Beigel.

Speaking at Taylor Wessing’s Sustainability in the Middle East conference in Dubai on November 2, Beigel said many easy and very effective steps to reduce energy waste do not need regulations.

“I see millions of consultants producing thousands of regulations and they aim to monitor all the activities in the construction industry for everybody to follow.

“But on the other hand I see that if I just go down to all these new developments, most of the walls in villas are still 12-14cm of bricks. It’s not rocket science. Just double the wall, leave a space and you reduce

energy consumption by 40%. You don’t need regulations for that.”

Drawing comparisons between mindset and construction practices in Europe and the Middle East, Beigel said the region is also failing to exploit the full potential of solarpowered hot-water systems.

Also speaking at the event, Aldar head of planning Alan Paterson responded saying frontline mindset is restricted to “traditional” practices: “There are not that many barriers. It’s about mindset within the developers. A lot of people are used to working and building traditionally.”

Adding that achieving two Pearls under Abu Dhabi’s new Pearl Rating System, is “not that difficult,” he added: “The biggest challenge is making developer’s buildings greener.”

Saudi Arabia project tender cancelled due to “favouritism” claims

ERRA tried to award the $70 million contract for the construction of University of Azad Jummu Kashmir Chattar campus to its “favourite contractor who was not technically eligible for the bids”, according to competing contractors. ERRA told the media that the process was cancelled due to consultants “re-shaping” the project.

Allegations of misconduct from competing bidders led to retender of a KSA development The tendering process for a US $70 million KSA-funded project has been cancelled after the Earthquake Reconstruction and Rehabilitation Authority (ERRA) allegedly tried to award the contract to its “favourite contractor”.

According to reports in Pakistani newspaper Pak Tribute, ERRA violated Pakistan Public Procurement Rules (PPRA) prompting the authority to cancel the six-month tendering process.

Muhammad Haroon Aslam on Assumption of Appointment as Deputy Chairman, ERRA

The Big Project’s monthly breakdown of big numbers in the regional news

UAE economy “doing well”, but Dubai Index shows decline Dubai was the worst-performing Gulf Arab listing on the Dubai Index after “disappointing earnings” contributed to a 5.4% yearon-year decline on listings.

The figures, monitored between November 10, 2009 and November 10, 2010, were released last month.

Profits, said to have contributed to the drop, include those of Arabtec; with quarterly profits down 96% and Aldar, with 14 billion dirhams (US $3.81 billion) in debt maturing next year, according to Egyptian investment bank EFG-Hermes.

Overall, real estate prices in the emirate are down 58% from 2008 peaks and further declines of 11% are forecast due to oversupply and limited liquidity as more projects that broke ground in the boom are only just being completed.

“If global investors want to play the global cyclical trade, it doesn’t really exist in UAE markets,” ASAS Capital chief investment officer Robert McKinnon said.

“The UAE economy is actually doing quite well — hotel reservations are up, Emirates Airline posted strong results, for example — but we can’t invest in these companies and there is a big disconnection between the stock market and the real economy.”

“Performance is likely to split into two halves — Saudi Arabia, Egypt, Qatar and Oman should outperform and attract foreign investors, but Bahrain, the UAE and Kuwait will be laggards,” said Shakeel Sarwar, head of asset management at Securities & Investment Co (SICO) in Bahrain.

Developers in the emirate of Abu Dhabi are also said to be affected by the market in Dubai and over leverage.

Value of gcc construction industry by country Estimations according to Business Monitor International reports.

$86b

Big deal The value of construction deals KSA is expected to award in 2011, according to Deloitte’s latest construction report.

Value of GCC construction projects by sector Estimations according to reports by the Dubai Chamber of Commerce, in the UAE.

20km

Pipeline Last month, Al Jaber Construction commissioned preinsulated pipe leader Logstor to supply 20km of pre-insulated pipes to the Fox Hills project in Qatar.

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NEWS | REGIONAL

Number cruncher

NEWS | REGIONAL

KSA POWER SECTOR

$4.2b

World Bank names KSA best MENA country for business Number of reforms reflect well on Saudi Arabia’s business reputation

INCREASED TRADING

36.5%

Value of contracts signed for the construction of power and desalination projects in SAUDI ARABIA in November

The level of increase in non-oil trade between Germany and the UAE from 2006 to 2010

Mosque contract awarded for “world’s biggest AC project” Holy Mosque contract represents US $35 million in revenues Millions of people travel to Saudi Arabia every year on pilgrimage and visit the Holy Mosque.

Saudi Ambassador to the US Adel A. Al-Jubeir.

Saudi Arabia’s improved process for dealing with construction permits has led to the country being named the best place to do business in the MENA region, by the World Bank’s International Finance Corporation (IFC).

The IFC announced the ranking in its report entitled ‘Doing Business 2011; Making a Difference to Entrepreneurs’.

KSA was the highest-ranking Arab and Middle Eastern country, listed 11 out of 183 economies globally; up from 67, five years ago.

“Saudi Arabia continues to successfully diversify and build its economy to create opportunities for its citizens,” said Saudi Ambassador to the US Adel A. Al-Jubeir, adding that the ambition is to now reach the top 10.

In addition to the streamlined processes surrounding construction permits, the IFC noted a further three factors which contributed to the ranking; credit approval, trading across borders and closing a business.

Over the last year, the Kingdom has amended a number of legislative processes including the commercial lien law and insolvency.

Saudi Arabia’s economic reforms, including its 2005 membership in the World Trade Organisation, have attracted a growing level of foreign investment.

A contract for the “biggest-air conditioning project in the world” has been awarded to Johnson Controls Inc. The contract, to cool the 1.2 million ft² Holy Mosque in Saudi Arabia was signed on November 6, with an official announcement made on November 8.

Johnson will provide a full HVAC system, including the purchase of 27 York multistage centrifugal chillers.

Johnson Controls say it is the biggest air-conditioning project in the world. It is also said to be one of the most efficient and sustainable facilities of its kind.

The contract was signed in collaboration with Saudi Bin Laden subsidiary Al Salem Johnson Controls. The companies have been working together since 1993, and have collaborated on other major projects at Saudi Arabian universities, airports and another mosque

German steel manufacturers significantly increase Middle East trade

Slow European economies have resulted in a stronger growth in the region German steel manufacturers are increasing their presence in the regional industry in light of continued slow trade in Europe.

The value of non-oil trade between Germany and the UAE was valued at $8.4 billion in 2009, a 36.5% increase on 2006, according to UAE Ministry of Foreign Trade figures.

Germany, a primary steelmanufacturing economy globally,

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known as the Prophet’s Mosque. According to reports from a company executive, the contract represents $35 million in revenues, with expectations that the sum will double in three years.

“The signing of this contract is the culmination of a long journey to win this unique and prestigious order — and also one of the largest single HVAC equipment orders in the history of Johnson Controls,” said Johnson Controls chairman and CEO Stephen Roell, who was in Saudi Arabia for the contract signing.

“We are particularly pleased that these products, which are specifically tailored to meet the expansion requirements of the Holy Mosque, will contribute to a more efficient and sustainable environment that supports the comfort of the millions of people who visit.”

produced 45.8 million tons of crude steel in 2008.

The upcoming SteelFab exhibition in Sharjah UAE, will for the first time feature a dedicated German pavilion.

Taking place from January 17-20, 2011, 10 German companies are confirmed to participate.

“Real estate development may have slowed in areas of the GCC, but major infrastructure projects worth billions of dollars and a growing population will continue to drive demand for steel and finished products,” said Sharjah Expo Centre director general Saif Mohammed Al Midfa.

“Given the rise in trade between the UAE and Germany, it was a natural step for German

companies to consolidate their presence under the umbrella of the German Engineering Federation,” he added.

Expo Centre’s Saif Mohammed Al Midfa.

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EVENT INSIDER THE BIG 5 2010

The Big Project brings you exclusive news and analysis from The Big 5 2010, which took place in Dubai from November 22-25

Energy prices deemed obstacle to sustainable construction goals Regional green build codes need further development according to experts

Oger Abu Dhabi general manager Richard Chammas speaking at The Big 5.

Contractors must lull clients into “comfort zone” Establishing open and honest relationships is key to construction, says Oger general manager Securing early buy in from clients and maintaining a close relationship throughout design and construction phases of a project is crucial to its success, according to Oger Abu Dhabi general manager Richard Chammas.

Speaking at The Big 5 seminar, ‘Client Leadership: Ensuring Clients Are Part of the Team’, Chammas said contractors all too often treat clients as adversaries rather than partners, which typically leaves client concerns and contractor objectives unaddressed.

He outlined client concerns as safety, whether the project will meet expectations in terms of design and quality, costs, capital value and delays, while contractors also seek a safe site, profitability, delivery on time and budget, and wish to earn repeat clients.

“Securing early buy in from clients is easier said than done. We need to establish their expectations, understand their business and the project goals and value.

It is also important to attain the client’s trust,” explained Chammas.

To achieve alignment, he said both parties needed to get involved in the project process and there must be visibility and good communication on both sides.

“First and foremost, parties should

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agree on common goals, establish processes and understand the risks. Clients must set achievable targets and potential project changes must be considered.

While the client wants value, the contractor is looking for financial motivation.”

Meanwhile, Chammas said a contractor’s role was to provide clients with a “comfort zone”, which involved demonstrating expertise, reliability through surety of delivery, assurance of fair value, clarity on business culture, commitment to work as a team, provide innovative contributions to the project and surety of financial returns for the client.

“This will generate repeat clients,” he asserted, adding that establishing a comfort zone was only possible with the client’s willingness to participate and engage in the process.

“The client must play an integral role and be fully engaged. This is essential to the success of the project”.

Chammas also called for a reduction of “red tape” set by client, saying a typical contract in Saudi Arabia could be as little as one page, whereas the same contract in the UAE could reach eight volumes.

Furthermore, in order to maintain continuity of alignment, he said a “regular, high-level interface” was essential.

Artificially low-energy costs in the region have been cited by a number of industry commentators as the greatest obstacle in the sustainable building industry.

Despite the introduction of a number of codes and regulations, the benefits are being undermined by energy prices which make it “very difficult to get a return on many green investments.”

Presenting at The Big 5 seminar, ‘Is making an existing building green really effective?’, AECOM’s regional vice president for building and engineering Andrew Schofield recommended that authorities should address building green by looking specifically at power generation and price tariffs.”

Commenting on the range of benchmarks and rating systems now in use, Schofield also said that existing green-build codes required further development, particularly in relation to indoor air quality.

“There is a range of benchmarks and rating systems and you can debate all day whether these are relevant.

While I think they can be, they are also somewhat limited in scope,” he asserted.

“Some of the codes simply say the more outside air you use, the higher the indoor air quality. But in this region the air is a high temperature, has high moisture content and is dusty so therefore it requires more energy to make it good-quality air.”

AECOM’s Andrew Schofield.

Lafarge

The amount invested in green research

Polymer developer launches green supplier network A network of sustainable companies has been established to assist decision makers in the Middle East construction industry

WBC for Sustainable Development’s Constant Van Aerschot.

Green buildings market to drive region’s economy The Middle East will eventually take Europe’s sustainability lead, says World Business Council The green building market will be the next major economic driver in the region, according to World Business Council for Sustainable Development co-chair Constant Van Aerschot.

Speaking at a conference at The Big 5, Van Aerschot, who is also director of French company LaFarge, said the scale of retrofits required in the market is “not overwhelming but a chance for job creation and economic growth.

“It’s the next growth engine, which needs to be filled by all construction industry professionals, not only the architects or material suppliers, but everyone,” he added.

LaFarge invests 170 million euros (US $226 million) annually into sustainable research and development projects and owns the largest building research facility in the world.

Up to 10 years ago, the company also made a commitment to reduce its carbon emissions by 20%, in conjunction with the WWF. Saying end users, developers, designers and the authorities all need to increase their demand for green-build solutions; he added that the Middle East will eventually take Europe’s lead, once technology and practices are better established.

“Europe is leading the way in this because their regulations are more developed and building users’ awareness is better.

“For example, recycling in Europe is now extremely common, you see recycling bins everywhere. In a few years the Middle East will be the same,” he explained.

European polymer developer, Bayer MaterialScience has established a network of sustainable services and suppliers designed to promote adoption of green-build practices in the region.

Aiming to enhance the adoption of official green-build regulations, the “eco-commercial building programme” aims to assist designers, developers and engineers in introducing sustainable concepts from the earliest possible point in a project.

The programme was introduced during a roundtable seminar at The Big 5.

Explaining how the programme differs to recently enforced legislation and established codes, managing director Stephan Rosenthal commented: “In the majority of projects that seek LEED ratings, accreditation is sought too late in the day.

“In reality, to achieve such sustainbility, this level of planning should be part of the design conversation; our specialist network will help decision makers achieve this.”

Part of the Bayer Climate Programme, the initiative is already established in Europe, America and China.

According to the firm’s head of programme Dr Thomas Braig, it is a “global initiative which needs to operate to regional and local needs”, promoting “a local supply chain with worldclass scientific solutions.”

Bayer said that current solutions on the market do not combine ecological and economical aspects and are therefore ineffective. The project has been developed in the EcoCommercial Building prototype at Masdar City.

Bayer also operates its Al Falah Ready Mix facility at the Masdar site, to pioneer the development of sustainable building materials.

Membership to the programme is held by the United Nations Environment Programme and the US, German, Russian and Emirati Green Building Councils.

“This is an exciting region where we have the opportunity to bring good ideas and valuable solutions to this part of the world and help to meet some of its challenges in this regard.

“We strive to provide solutions to global challenges,” said Rosenthal.

The programme incorporates four elements; the ecology, economy, design and social impact of buildings.

“Construction is a very local market and this programme allows for maximum flexibility to source special market needs. It aims to support decision makers and investors and increase competitiveness across all areas of construction,” said Dr Braig.

“Over the past couple of months we have been building our network here in the Middle East and now we are ready to make a contribution through our joint expertise,” he added.

L-R: Managing director Stephan Rosenthal and Dr Thomas Braig.

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REGIONAL NEWS | THE BIG 5 2010

$226m

REGIONAL NEWS | THE BIG 5 2010

99.8% Alibaba

The company witnessed a 99.8% increase in construction enquiries on Alibaba.com in 12 months

Supplier website reports near 100% trade increase Site director says industry can sustain for two years without “big projects” Trade portal Alibaba said increases in year-onyear sales indicated “promising trends” and signalled a return of confidence in the construction industry.

Reporting an increase of 99.8% in construction-related enquiries, director Maggie Choo attributed the positive trend to an increase in the number of small and real estate projects being undertaken.

“The number of bigger projects may be declining, but that does not mean the industry is slowing down. The smaller projects are still happening, very much and we are definitely seeing a positive upwards trend, spurred by the volume of these smaller projects. There are enough of these to sustain the industry, as our data confirms,” she commented.

Trading more than 44 categories, including construction, Alibaba.com has 60 million members worldwide, with more than 800,000 in the Middle East. The percentage share of overall construction enquiries to the site from the Middle East in quarter three of 2010 was 10.1%.

Top products include doors and windows,

timber products, marble and bathroom accessories. Customers also source manufacturers.

While the trends indicated a move away from the large-scale, high-risk projects in parts of the Middle East, a number are still being specified as contractors and buyers prepare to diversify into markets such as Saudi Arabia, according to the firm. Worldwide, general construction enquiries to the site have grown 150% year-on-year, with Choo reporting the strongest markets in Brazil, Peru and Russia.

Construction industry calls for no-blame culture ACE suggests horizontal approach to project management will reduce risks A lack of partnerships between construction parties in the region is causing risks to be cascaded down the management line, according to the Association for Consultancy and Engineering (ACE) CEO Nelson Ogunshakin.

He said industry professionals in the Middle East construction sector often took a “vertical approach” to the construction and delivery of projects.

“An integrated team is the key word when it comes to managing risk and removing the blame culture,” he asserted. “Forming partnerships means working together with trust, cooperation and sharing risk across the team, which prevents disputes.”

Ogunshakin suggested that successful partnerships relied on good client relations, the early

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Director Maggie Choo.

engagement of the supply chain, a collaborative procurement framework, selections based on value above cost, commitment to measure and benchmark performance, and trust and respect among parties.

However, he said often collaborations fail due to a “blame culture” in the management of projects, a lack of leadership, an adversarial approach and ‘risk dumping’.

“When successful, total construction partnerships result in less waste and duplication, more innovation, better design integration, staff satisfaction and time and cost predictability,” added Ogunshakin, speaking during a conference at The Big 5.

He cited the successful delivery of London Heathrow Airport’s Terminal Five as a good example of such partnerships.

“British Airports Authority (BAA) took on the financial and operational risks of construction, and the agreement between BAA and key suppliers was collaborative, resulting in the project being to budget and on time.”

Climate Wizard.

Climate Wizard system is Gaia winner A ‘natural’ cooling solution scooped Gold in the 2010 Gaia Awards The Climate Wizard by Seeley International picked up the Gold award at the 2010 Gaia Awards for sustainability.

The system uses evaporation to reduce air temperature with a full counter-flow water-toair heat exchanger, which produces cold air.

Because the water and air never come into contact, no added moisture is required.

“We believe that you can deliver superior cooling performance without sacrificing energy efficiency, and Climate Wizard proves this.

Climate Wizard is an innovation revolution and is already starting to change the way the world looks at air conditioning,” said company founder and chair Frank Seeley.

According to the company, the benefits of using evaporative coolers include a 90% saving on running costs and systems, which use no harmful refrigerants. Seeley has been operating since 1972 and supplies units in 70 countries.

The award was announced ahead of The Big 5. The Gaia Awards, now in their third year, also included four silver and six bronze accolades, with a further 13 companies recognised as finalists. Some of the products included waterless urinals, silk plaster and energy-recovery ventilators.

The awards are sponsored by the Portuguese Cork Association.

“The standard of entries was outstanding and congratulations to all companies who made the winners’ list this year. As the importance of environmental responsibility continues to increase across the international construction industry, the technologies and innovations that are being put forward for Gaia Awards become further advanced and it has been fantastic to see the commitment to the environment from so many companies,” said DMG Events senior vice president Simon Mellor.

“The Big 5 will provide a showcase to help raise the profile of the winning green solutions and we know from previous Gaia winners that the awards can make a real difference to their business,” he added.

Turn to this month’s Your Shout on page 62 to find out what the visitor response was to The Big 5 2010

How to reduce construction costs and manage price fluctuations Hill International’s vice president David Rupp and project controls manager Lloyd Bruce Grant offer advice on reducing construction costs and managing price fluctuations in a changing market Changing materials prices can cause major challenges for the construction industry when identifying costs, but pre-construction preparation and smart project management could reduce risks.

Firms should start by identifying priced worldwide commodities such as metals and cements, identify MEP systems from worldwide suppliers, research local materials markets and outline any special materials required, such as marble or ceramics, according to the firm’s international vice president David Rupp and project controls manager Lloyd Bruce Grant.

The next step is to identify costs by comparing similar projects, researching the market and looking at your own company’s historic data.

“These are great ways to compare, track and see how costs are moving, particularly when monitoring steel price fluctuations. However, it can be tough collecting quality cost historic data and if this is not generated internally you will need to buy it from consultants. It’s important to have this information or you are operating in a fog,” observes Grant.

“You should also ask employees with international experience to compare local and global markets, and utilise clients’, contractors’ and sub contractors’ databases and knowledge bases. Contractors in particular can offer sound advice, which is why it is useful to bring them onboard early.”

Furthermore, Hill International recommends keeping track of changes in real estate demands, construction laws and even expenses such as fuel prices, which can all affect costs.

Lowering costs

Once costs have been identified and you have an idea of where material costs are heading, you are in a position to redesign the project and cut the scope, if needed.

It is recommended to carry out value

“Decisions should start on day one of the project, in the design stage rather than waiting until when the contractor has been awarded” engineering during the design stage to avoid the risk of additional costs and growth delays through over engineering.

“An over-engineering and cost analysis review is absolutely essential so you don’t have to overdesign to compensate for poor quality control during the construction process,” explains Rupp.

Part of this involves improving constructionquality programmes and generally being aware of the lifecycle of the building and components within it.

Furthermore, owner requirements should be clearly outlined in contracts and the contract method should promote flexibility and change.

“It’s a two-way street. As the market changes, the client may wish to go back to contractors and renegotiate, a good relationship will help to achieve this.”

In addition, team dynamics are critical to managing costs.

“There has to be a working relationship between the contractor and designer, and all technical skills must be available on site.

“We ensure teams are sat next to each other in the same office; the owner, the architect and the PMC team — this allows decisions to be made quickly and easily,” asserts Rupp. Perhaps the most important issue in managing construction costs, he asserts, is the inability to make decisions quickly.

“Decisions should start on day one of the project, in the design stage rather than waiting until when the contractor has been awarded,” says Grant.

“Often owners are reluctant to invest in the design stage meaning many decisions are left until later in the process, however, the longer you delay a decision the more expensive it gets.”

But not all projects allow for all decisions to be made during design change, so be prepared to have to change the design again later in line with the market — it is important to be flexible.

Top 1o tips •

• •

•

• • • • • •

Identify priced worldwide commodities and MEP systems from global suppliers Research the availability of and demand for local materials Outline any special materials required for the project, such as marble or ceramics Compare similar projects and look at your own company’s historic data Utilise clients’, contractors’ and sub contractors’ databases Keep track of changes in real estate demands and in construction laws Carry out value engineering during the design stage Improve and implement construction-quality programmes Contract methods should promote flexibility and change Decisions should start on day one of the project

www.thebigprojectme.com | 13

REGIONAL NEWS | THE BIG 5 2010

Your shout

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W

hile many US markets have shrunk during the global economic downturn, the sustainable construction market has increased in value by 50%, according to a new report by McGraw Hill.

Calling it a “bright spot in an otherwise tough economy”, McGraw Hill says the greenbuild market represented 25% of all new construction activity in the US in 2010, with start-up, green-build projects up 50% overall, compared to 2008 figures.

The actual value is estimated to have increased from US $42 billion in 2008, to a potential $71 billion in 2010.

The trend shows a clear shift from the “commercial mentality” many commentators name as the market’s greatest enemy, particularly in the Middle East, where quick returns and record completion times are key.

But after more than a decade of high investments and low returns, the figures in America are starting to add up.

The key emerging trends are a 13.6% reduction in operating costs, a 10.9% increase in new building values and a 9.9% increase on return on investment (ROI).

The retrofit market is looking equally strong with such projects reducing operating costs by on average 8.5%, increasing property values by 6.8% and increasing ROI by 19.2%.

“In the US the two main drivers of green building are increasing energy prices and market demand. These are followed by market differentiation; public relations benefits; greater health and well-being for occupants; and government regulations, although these are not as critical as other factors mentioned,” said Harvey Bernstein, vice president of global thought, leadership and business development at McGraw Hill Construction.

Worlds Apart

In contrast, it is these factors that are causing the greatest obstacles for the green market in the Middle East. While the market is stringently planned and widely publicised, evidence suggests basic issues still require addressing.

McGraw Hill reported in 2009 that the Middle East market is driven by “masterplanned cities, next generation skyscrapers, culturally iconic institutions and luxury hospitality and island developments”.

On the other hand, a significant proportion of growth in the American market has been driven by retrofit projects.

Further to the research conducted in the US, McGraw Hill has also monitored the Asian, European and South American Markets.

Finding positive developments in countries which are often ranked the worst polluters.

According to the company, The Chinese government has been “the main driver” of greenbuilding practices.

“The Chinese government has given green building great importance in both China’s 11th Five-Year Plan and in its medium- and longterm plans for science and technology development,” explained Bernstein.

“Some outcomes of this increased focus on green building include launching the Three Star System, China’s Green Building Evaluation Standard,” he added.

“Every market has done well; the sector is growing and awareness is increasing,” commented Ghida Sinawi, operational director of the Emirates Green Build Council.

“If you consider the factors, it’s not going to cost much. The expense of building green is a myth especially as the technologies advance.

The future will see more integrated design and everybody working together.”

The level of ROI from a retrofitted building according to the survey

News

A report by construction analyst McGraw Hill has found the very factors which hinder the green-build market in the Middle East have contributed to a 50% growth in the market in the US

19.2%

XXXXXXXX NEWS FEATURE | XXXXXXXXXX | GREEN-BUILD REPORT

US green building market value doubles

America’s greenest buildings NEW BUILDS Building: Almaden Tower Location: San Jose, California LEED Rating: Platinum Features: 115% saving on water and utility bills Building: East & West Towers Location: San Jose California LEED Rating: Platinum Features: Irrigation system that links to local weather stations and automatically adjusts to real-time weather conditions.

Upgraded air systems to increase the amount of outside air filtering into the building Building: Banner Bank Building Location: Boise, Idaho LEED Rating: Platinum Features: Collects storm water for sewage system. Back-up generators powered with biodiesel, made from used vegetable oil

RETROFITS Building: Empire State Location: New York Features: A $500 million investment is the largest retrofit of a commercial building built before World War II. Windows, insulation, lighting, HVAC and control panels were all upgraded, cutting energy consumption by 38% Building: Sears Tower Location: Chicago Features: The $350 million programme replaced windows, upgraded elevators, introduced onsite renewable energy generation, green roofs, advanced lighting control systems and high efficiency water fixtures Building: Aqua Tower Location: Chicago Features: Upon completion, this project will see an 80,000 ft² garden planted on the threestorey podium to diminish heat island effects

www.thebigprojectme.com | 15

“Concerns regarding the need for training and skilled staff are well founded and there is a clear call to industry bodies and decision makers to bridge the divide and lead the industry forward�

46%

25%

Of respondents claimed to be self-taught in BIM

The Number of users as a percentage of industry in GCC

Industry talks BIM The Big Project brings you the latest and most significant results from the 2010 Middle East Building Information Modelling Market Survey, undertaken by BuildingSmart ME

Respondent profile By country UAE 77% KSA 41% Qatar 35% Oman 22% Bahrain 19% Kuwait 18% Jordan 7%

16 | www.thebigprojectme.com

Company type

Company size

T

he 2010 Middle East Building Information Modelling (BIM) Survey was undertaken by BuildingSmart Middle East (ME) to assist in planning and development of BIM programmes and infrastructure across the region.

The survey findings provide a unique insight into the current state of building information modelling, as well as providing valuable indicators of how the industry can prepare for and facilitate increased BIM activity, according to the organisation.

Respondents were from key construction industry sectors operating in the UAE, Saudi Arabia, Qatar, Oman, Bahrain and Jordan. The findings are reflective of the opinions of industry professionals with prior exposure to, and in some cases experience of, BIM. Overall, the findings suggest that BIM penetration in the industry is moderate (around 25%), however, the level of competency is underdeveloped compared to regions such as western Europe and the US. Face-to-face interviews conducted as part of the survey process indicated that most firms engaged with BIM were in an ‘early adoption’ phase and were typically using BIM in its most basic capacity — as a tool for visualisation, coordination, drawing extraction, and in a few cases, for construction planning.

Despite this inexperience, the recognition of the value of BIM is strong, concluded BuildingSmart, with respondents identifying ‘reduction in design errors (66%), ‘improved quality’ (64%) and improved productivity (64%) as the primary benefits.

The survey uncovered concerns that a lack of availability of skilled staff and training may hinder the adoption of BIM in the future.

Such concerns are supported by the findings on current capabilities and skills levels. Of the

Number of Building information modelling users as a percentage of industry in the US

62%

36%

Of non-BIM users said they were in the process of implementing sustainability within their organisation

Number of users as a percentage of industry in Western Europe

“Respondents wanted to see BIM mandated on projects, as well as the establishment of industry standards and certified training and implementation programmes”

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Of BIM users indicated they were in the process of implementing sustainability within their organisation

49%

XXXXXXXX NEWS ANALYSIS | XXXXXXXXXX | TECHNOLOGY

81%

BIM adoption and usage

respondents who had received BIM training, 46% indicated that they were self taught, and those that were self taught were less likely to be regular BIM users that those with formal training (64% compared to 84% respectively).

There was a significant call for industry leaders to support the adoption of BIM in providing expert guidance and infrastructure, according to the organisation’s findings. Respondents wanted to see BIM mandated on projects (cited as the number one driver for future deployment), as well as the establishment of industry standards and certified training and implementation programmes.

BuildingSmart ME concluded that overall the findings represented a market that is optimistic and aware, but inexperienced in Building Information Modelling. Real benefits are recognised, but not necessarily seen as achievable (ROI was identified as one of the least recognised benefits).

Concerns regarding training and skilled staff are founded and there is a call to industry bodies and decision makers to bridge the divide and lead the industry forward, according to the organisation, which suggested governments, owners and developers can benefit significantly from BIM, and at the same time accelerate the penetration into the market through the mandating of BIM in development approvals, certification processes and in prequalification and tender documents.

“Increasingly, those involved in sustainable design and construction are finding that BIM is making green outcomes more achievable” www.thebigprojectme.com | 17

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TALK XXXXXXXX | DRAKE AND | XXXXXXXXXX SCULL

Breaking into new markets Drake and Scull International CEO Khaldoun Tabari speaks to The Big Project about the firm’s expectations of 20-25% revenue growth in the Middle East within five years, opportunities in India, its troubles penetrating the Libyan market and reveals plans to expand into the drinking-water sector

The Libyan market shows potential.

M

ore than three years ago, Drake & Scull embarked on a mission to go public, fuelling the company’s growth that continues, even in today’s challenging market.

The firm’s CEO Khaldoun Tabari says crucial to Drake & Scull International ’s success has been its diversification into new market geographies globally and in different sectors.

“When we established the company in Kuwait in 2006, we had no competition there and secured US $40-50 million worth of projects very quickly. The same happened in Qatar, Bahrain and then in Saudi Arabia, which is not an easy market,” recalls Tabari.

“For growth to happen, you have to take risks, initiative and leadership, this applies to whatever market you’re in.

“You also have to become culturally integrated. Once you’ve put the plan in place, you must execute it — there is no turning back.”

Having identified further opportunities in MENA and India, Tabari says Drake & Scull is eyeing 20-25% growth over the next four-to-five years, with a view to entering India and new markets in North Africa.

Speaking exclusively to The Big Project on the sidelines of The Big 5 conference last month, he said: “When we say 20-25%, that covers the whole MENA region where we’re now fully developed and consolidating all the acquisitions we have made, we have organically grown in

20 | www.thebigprojectme.com

“I believe that civil [engineering] has a lot of competition. It is very aggressively marketed, the margins are not there and the spread for us would be too thin” some areas, but now is the time when we take all of that and build on it.

“North Africa is fantastic, there are a lot of opportunities there, but you have to understand the markets culturally.”

New kid on the block

The firm has witnessed the challenges of entering

new territory first hand in its expansion into Libya, where Tabari says it has “invested a lot of money and tendered projects extensively without any success”.

Tabari reveals that the firm has come close to winning contracts in Libya on occasion when it has been the lowest bidder, but the project has then been retendered.

“Libya is quite a difficult market; I’m sure anyone else working in Libya will tell you the same. The decision process is very difficult.”

However, he remains positive about the country’s future potential and believes the market will account for a proportion of Drake & Scull’s growth in North Africa.

“While we’ve been quoting and have been unsuccessful, we believe imminently that we will get some work in Libya. The opportunities are tremendous. The Turkish contractors have had a very good position in the Libyan market, they’re closer.

“The Chinese have also done a very good job there, but our experiences in the Middle East, especially in Dubai, are valuable. We can take that story and spread it around to new areas we intend to work in. The know-how Drake & Scull has gained is an asset that few have.”

In terms of sectors, Tabari revealed the firm’s expansion plans to focus on infrastructure, “basically water treatment, sewage treatment and power”, as well as its core business MEP. Furthermore, Tabari said he “could not rule out” the possibility of more acquisitions in the

region, and hinted at the firm’s plans to enter the drinking-water sector.

“We’re looking at integrating our offering with other services in the same field so if we’re visiting a client and they need something else; we can offer it.

“I’ll give you a hint, we are currently in the sewage-treatment business, but we’re not in the drinking-water sector so it would be very easy for us to be in the drinking-water segment.

That’s the situation.”

Selective about sectors

Tabari was adamant that the civil engineering sector would not be an integral part of the firm’s growth plans in new markets.

“I believe that civil [engineering] has a lot of competition. It is very aggressively marketed, the margins are not there and the spread for us would be too thin. We concentrate on Saudi

Arabia and the UAE because we’ve been here from the beginning.”

However, during the conference Tabari explained that the group’s diversification into civil engineering was an important part of its original growth agenda.

“In small markets you must find different ways to generate revenue. In Bahrain you’d have to look at more than one business stream for example, where as in Saudi Arabia you can thrive on one.

Commenting on the firm’s two recent acquisitions in Saudi Arabia, he added: “The first acquisition we’re quite happy with and we’re looking to increase our penetration in Saudi Arabia. As for the second acquisition, we are now on the verge of completing this as we have

News

Drake and Scull International reported its net profit for the first nine months of 2010

signed the contract, but we haven’t got control of the company yet. This is going to take another two to four weeks as first we do the due diligence legally and financially, then we will exchange a sales purchase agreement then after that comes the integration.

“Every acquisition takes time; some European acquisitions take two years because you’re marrying two different companies.”

When asked what advice he would give to construction firms looking to expand into new markets in the New Year, Tabari replied: “Hire as much local talent as you possibly can and integrate that within the organisation, do not look like an outsider; look like an insider working in their country — that’s what we’ve done in Saudi Arabia.”

He adds: “There will always be difficulties in penetrating local markets because of the local competition, and you may have to price yourself the same as a local contractor to get the work.”

To be successful, Tabari says contractors must be lean, clear about their mission and operate as a team.

Drake & Scull International reported AED 432 million in revenue and net profit of AED 34 million for the third quarter ending 30 September 2010 — yielding an accumulated revenue of AED 1.2 billion and AED 121 million net profit in the first nine months of this year.

XXXXXXXX TALK | DRAKE| XXXXXXXXXX AND SCULL

$32.67m

“We are in the sewagetreatment business, but we’re not in the drinkingwater sector — so it would be very easy for us to be in the drinkingwater segment”

New heights Tav Construction regional director Yusuf Akcayoglu takes Melanie Mingas on a tour of its three Dubai projects under construction; Emirates Financial Towers, Sulafa Tower and the UAE’s second-tallest and soon-tobe completed building, Marina 101

S

ince the 2000 completion of the 181m Isbank Tower, one of the tallest office buildings in Istanbul, Turkish contractor TAV Tepe Akfen Investment Construction and Operation JSC (TAV Construction) has delivered shopping plazas, high-rise towers and airport projects across the region.

In fact, the firm’s airport engineering was ranked third in the world in a 2009 survey by Engineering Record.

The company is now little more than six months away from the completion of its first hotel apartment development in Dubai, called Marina 101.

The aptly-named 101-storey, mixed-use tower in Dubai Marina features 25 storeys, is home to a five-star hotel and 506 residential suites and penthouses. At 426m, it is currently the highest hotel apartment tower in the world, the second highest building in the UAE and the sixth highest tower in the world.

The “Chicago-style” block is part of a 12-tower cluster of independent projects in the Marina, with TAV Construction building Marina 101 and its next-door neighbour, the 79-storey Sulafa Tower.

When the contractor signed the contracts in 2008, regional director Yusuf Akcayoglu described Marina 101 as a “one-of-a-kind development”.

“The ‘non-conventional’ DOKA hydraulic climbing core-wall formwork does not require nails, instead it uses a high-strength and light-weight material that can be mounted by hand ‘like Lego’” 22 | www.thebigprojectme.com

View from Marina 101, the UAE’s second-tallest building.

Regional director Yusuf Akcayoglu.

News

Manpower

The number of construction workers on site at Emirates Financial Towers.

Marina 101 Location: Dubai Marina Height: 426m Storeys: 101 Construction period: June 2008 until June 2011 Construction partners: Tokas Real Estate, Emaar Properties, Sheffield Real Estate FZC, Middle East Foundations Group LLC, Crowne Plaza Hotels and Resorts, NFT Cranes Budget: AED 1 billion

Sulafa Tower Location: Dubai Marina Height: 280m Storeys: 79 Construction partners: Emaar Properties, Middle East Foundations Group LLC Budget: AED 450 million Workers on site: 1100 CLOCKWISE FROM TOP LEFT: Construction of the spider facade in Emirates Financial Towers; Marina 101; International Financial Centre (DIFC); Sulafa Tower and Marina 101; Robotic parking facility at Emirates Financial Towers.

Overcoming obstacles

From facilities to formwork, two years later his statement still rings true.

The “non-conventional” DOKA hydraulic climbing core-wall formwork does not require nails, instead it uses a high-strength and lightweight material that can be mounted by hand “like Lego”.

Because the formwork is so light, it does not require cranes, which the firm says reduces costs and time, with each floor completed in an average period of three days.

However, construction of the building, especially during the economic downturn, has not come without its troubles.

“The challenge for both towers was the safety of working at heights; there are different risks so we have to conduct a lot of studies to overcome problems.

“Also the transportation of materials and costs were challenging at times,” explains

Akcayoglu. Since 2008, the cost of steel has plummeted from AED 7000 (US $1906) per ton to AED 2400 ($653) per ton.

While this may be good news for some, a shortage in concrete since 2007 somewhat muted the advantages.

Furthermore, when launched in 2006 when Sheffield Real Estate claimed investors in Marina 101 could receive a 75% return on residential suites. While today’s market is more realistic, Akcayoglu maintains that a return, albeit drastically lower, still exists.

TAV Construction’s third Dubai project is the Emirates Financial Towers (EFT) at Dubai International Financial Centre (DIFC). Due for handover next month, the 27-storey commercial-use twin towers were constructed simultaneously within four years.

Designed by Singapore-based architect CPG Corporation, Emirates Financial Towers are inspired by the financial districts of the Far

XXXXXXXX ON SITE | DUBAI | XXXXXXXXXX

1500 people

Emirates Financial Towers Location: Dubai International Financial Centre Height: 145m Storeys: 27 Construction period: March 2007 until January 2011 Budget: AED 1 billion Workers on site: 1500 Project partners: MAG Property Development, Projacs Dubai, Al Habtoor Engineering Enterprises Co. LLC, CPG Corporation Private Limited Marina 101

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ON SITE | DUBAI

426m Skyscraper

Standing tall, Marina 101 is the highest hotel apartment tower in the world.

Emirates Financial Towers.

Upon handover of the development, each owner will be responsible for the fit out of their own units, but common areas come under TAV Construction’s remit.

Maximising CPG Corporation’s use of glass, aluminium and steel in the design, the structure captures and maximises light with revolving doors and featuring a “spider facade” on the front entrance.

”We believe Dubai is the number one destination in the Gulf; it’s the emirate which put the Gulf on the world map and still today it’s the most distinctive city” East; with aesthetics a high priority. The development offers automated, “robotic” parking, a sky bridge across the 16th floors and a planned 2km tunnel, which will eventually link every development in the Dubai International Financial Centre.

The towers will be ready for occupancy from next month.

24 | www.thebigprojectme.com

Moving up

Inside Emirates Financial Towers in DIFC.

The three towers are TAV Construction’s last projects in Dubai for the immediate future, with the majority of operations focusing on Middle East airports and developments based in Abu Dhabi.

But the firm does plan to eventually return to the emirate.

“We believe Dubai is the number one destination in the Gulf; it’s the emirate which put the Gulf on the world map and still today it’s the most distinctive city compared to others,” asserts Akcayoglu.

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Road to recovery

26 | www.thebigprojectme.com

Industry professionals say lessons learnt from the boom and bust of the MENA construction sectors have paved the way for better health in the New Year and reveal some of the most lucrative markets to tap in 2011, at home and abroad.

Louise Birchall reports

T

he outlook for the New Year is a promising one, with many construction firms eyeing emerging regional and international markets to identify opportunities in 2011.

Furthermore, construction costs are estimated to be lower than in 2007, which is expected to fuel recovery in the sector. But perhaps the most important improvement in 2011 is clients, contractors, developers, consultants, designers and many others will be starting the New Year having learned some valuable lessons during the global financial downturn.

Learning curve

“Firms are realising they must go back to fundamentals, they need sound business planning, risk management and project development.

This wasn’t being done sufficiently before the crisis, which is reflected in studies of costs versus returns,” explains Turner Arabia general manager Husein Odeh.

A lack of fundamentals in the construction process is attributed as one of the reasons for project failure. Many projects that started during the boom period in the UAE did so with uncertainties, such as unapproved funding, unissued permits and a lack of organisation, structure or management in place.

“During the boom years, anyone with money thought they could be a developer. Many development firms in the region were created out of nothing, with employees unsure of what the role involved. Therefore decisions were left until later stages, market research wasn’t conducted and over- and under-building in some sectors

was common,” recalls Odeh. “To have a successful project, developers must understand that decisions make the highest impact early in the process. The later you wish to make changes, the more costly they will be.”

Furthermore, priorities and long-terms goals were often unclear. Objectives were not set out for designers, few feasibility studies took place and often the designers would have to guess what the developer wanted.

“To enter the market, consultants would charge very low prices, but with these came limited and very basic services. Due to this, the designer would be expected to do everything, the design process was often rushed and quality compromised. Meanwhile, developers didn’t have the experience to recognise the situation,” says Odeh.

Suggesting that only five-10% of project costs come from the design and construction phases, while the rest is accumulated during the operation and maintenance of the project, Odeh says owners have also learnt the importance of costing a project for its entire life cycle, which was not always the case during the boom when owners were building to sell.

Operations manager for Brookfield Multiplex, a facilities management firm, Stewart Johnson has also recognised this trend.

“The demand for facilities management services can in part be attributed to an increased awareness of environmental issues.

“In addition, many new projects must adhere to environmentally-friendly design aspects, which over time will become more viable and cost effective,” he explains.

Increased demand for cost-effective maintenance and operation services has allowed Brookfield Multiplex to identify new markets in the Middle East and Asia for expansion in 2011 and beyond.

Market opportunities

It is not only the developers who have learned from the boom and bust period and many other product and service suppliers have been able to base expansion plans on increased awareness of

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COVER | NEW MARKETS IN 2011

King Abdullah Economic Centre is among KSA’s mega projects.

“Clients and contractors now realise the significance of time and value budgeting for effective cost control”

Contractors are looking to new markets for project opportunities in the New Year.

crucial products and services needed to facilitate a smooth construction process.

“Contractors have learnt over the last few years that insufficient monitoring of project processes leads to uncertainties. The economic downturn forced clients and contractors to realise the significance of time and value budgeting as a basis for effective cost control and decision making. Ultimately, it is informed and timely decisions that minimise loss and risk in this challenging environment,” explains CCS Group general manager Ian Hauptfleish.

The firm supplies technology products offering construction managers the tools they need to control cash effectively by keeping tendering, procurement and construction project variables under strict control.

The change in attitudes of clients and contractors has led to an increase in demand for such products, according to Hauptfleisch.

“We’ve recently set up our first product distribution office in India, where we have already secured some prominent clients, including Larson and Toubro. The Middle East and North Africa still hold immense potential, particularly Saudi Arabia, Lebanon and Jordan, which are all experiencing increased construction activity,” he observes.

As a result, the firm has also established a distribution office in Bahrain to assist with installations of its products outside of the UAE and it is planning to open a satellite office in Abu Dhabi, identified by CCS as another lucrative market.

Similarly, Keller Group general manager Shad Khan predicts that the future of the Middle East’s construction industry is “computerised and sustainable”.

“Labour-orientated processes will be replaced with computerised quality control monitoring and there will be a reduction in projects that require a large quantity of cement and steel,” he says.

The company employs around 300 personnel in the Middle East and currently has expansion plans for Kuwait.

“Strong sales growth in the region indicate

28 | www.thebigprojectme.com

News

6.3m Brazil has a huge housing deficit of 6.3 million, which the government is said to be “pouring money into”

three cable manufacturing factories, a copper rod plant and a PVC compounding facility in the emirates, and a sales network spreading across the Middle East, Europe, Asia and Africa.

“To meet the growing demands of customers, we will continue to expand our factories and sales office networks in the Middle East, North Africa and India, as well as Europe,” asserts marketing manager Ashish Chaturvedy.

Wolfkrann international marGDP growth and construction investments make China a key emerging market.

operations will go from strength to strength. In 2008, sales were split 50:50 between piling and groundimprovement projects, with ground improvements since growing to a 75% share of sales,” adds Khan.

Branching out

On the other hand, most construction firms have seen a drop in some of their key markets, which has driven them to identify new and emerging construction industries with business potential.

Many are still focused on the Middle East and North Africa regions, with India cropping up as a strong contender for the New Year as well.

“Libya is booming, we believe this will be a big market that has a lot of money and is currently underdeveloped. The demand is also there in Egypt,” says Odeh.

Shell general manager Amr Adel says “the Middle East remains an exciting region for Shell’, while door manufacturer Tenglong global business development manager Ronald Thai says “though the economy is slower in the region,

the Middle East continues to be our biggest market”.

Zamil Air Conditioners provides solutions to more than 55 countries worldwide and employs around 3000. CEO Osama Bunyan adds: “We’re looking at expanding into new markets from a profitable growth perspective. Interestingly there are select exports markets we’re currently looking at, namely Egypt, Iraq, India, Sudan and other African markets. These all offer tremendous growth potential.”

Likewise, electric and dieseldriven high-performance rotary screw air compressor manufacturer Sullivan Palatek has identified some key African markets for expansion in 2011.

“The GCC industry demand and growth have been strong and the company looks forward to moving into Africa in the New Year, particularly in the North, including Egypt, Syria and Algeria.

Meanwhile, cable manufacturer Ducab is eyeing a 20% market share in the GCC in the near future. The firm currently has a 50% market share in the UAE, with

Abu Dhabi was named as a green leader.

keting manager Alison Gustavsson adds that market development in the Gulf region has “enormous potential”, from Saudi Arabia, Africa, Iran, Iraq through to India, explaining that it is essential to identify major projects in these areas. The tower cranes supplier is currently involved in the Princess Noura Bin AbdulRahman University for Women project in Saudi Arabia.

KSA calling

In fact, many construction-based companies are expected to flock to

XXXXXXXX COVER | NEW| XXXXXXXXXX MARKETS IN 2011

brazil housing market

Saudi Arabia in the New Year to take advantage of numerous project opportunities, not least those in the education sector.

“The costs are down, the materials and equipment are available and the labourers are already there,” says Odeh.

While the private sector is suffering in Saudi Arabia, the government is injecting billions of dollars into projects and as much as 50% of its budget has been allocated to the education sector, followed by the health-care sector, which accounts for 17%.

However, the government is only investing 7% of its budget into housing, most of which will be for low-cost accommodation.

“We believe the private sector should focus on housing, it’s an area of opportunity because the government is not focused on these projects. Once the banks start lending again, the private sector should focus on building housing for the middle class in KSA,” reveals Odeh.

But when will the banks start lending? Odeh tells The Big Project he predicts this will happen midnext year, though it may be at a slow pace.

Formwork supplier RMD Kwikform managing director Paul Williams adds: “The building sector fell off sharply across the region during the global financial crisis.

There are indications that market conditions are improving, but we are not expecting any significant improvement over the short term, except in KSA.” Furthermore, Saudi Arabia appears to be leading by example in the sustainable construction

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COVER | NEW MARKETS IN 2011

“China’s GDP is growing by more than 9% every year. Construction expenditure was $4.4 billion in 2010 and is expected to increase by 11% annually”

SAUDI ARABIA

arena. Solar Plant constructor Environmena claims to be “keeping it’s ear to the ground” across the region as Gulf countries publicly express interest in renewable energy and solar power programmes.

“It appears that Abu Dhabi and Saudi Arabia are leading the way in respect to announced programmes and enacted policies,” says VP — technical Sander Trestain.

Additionally, he says there is considerable momentum in North African countries, such as Morocco, Tunisia and Algeria, which are pursuing both solar and wind-based power programmes.

“It should be noted, however, that in all of these markets, the solar and renewable energy initiatives are still quite new, and there is a substantial amount of policy and funding development still required.

But recognising KSA’s widespread potential across different

construction project sectors, Emirates Glass vice president of sales and marketing Ziad Yazbeck has dubbed the GCC country as “the next big market” in the region.

Meanwhile, Arminox Gulf general manager Torben Krebs says “Saudi Arabia represents the biggest potential” for the steel-strengthening firm.

However, understanding the importance of diversity, Arminox is also establishing a production facility in Qatar, looking into opportunities in Kuwait and has recently set up a company in the US.

Global growth

The company is not alone in looking outside the region for lucrative markets in 2011.

While many European countries are still demonstrating negative growth, Odeh signposts Asia (except Japan) as the “strongest growth area” globally between the years 2011 and 2014.

30 | www.thebigprojectme.com

Meanwhile, he identifies China and Brazil as key emerging markets.

“China’s GDP is growing by more than 9% every year. Construction expenditure was $4.4 billion in 2010 and is expected to increase by 11% annually.

By 2014, expenditure is forecast to reach $730 billion,” he asserts.

Krebs reveals Arminox is planning future expansion into China as well.

“Brazil is also increasing construction expenditure by 9% annually between 2010 and 2014 and the planned FIFA World Cup and Olympic Games means there will be a lot of government funding into developing sports facilities and infrastructure.

In addition to this, Brazil has a 6.3 million housing deficit, which the authorities are pouring money into. There will also be many opportunities across speciality projects including hospitals, airports and high-rise buildings.

Odeh reveals that Turner is exploring emerging markets in Asia, Turkey, Central America, the Caribbean and Eastern Europe, but doesn’t plan to move its operations from the Middle East.

“The region is still attractive in terms of innovation and construction,” concludes Hyder Consulting’s regional director Stephen Oehme.

Housing, infrastructure and speciality projects are creating opportunities in Brazil.

FAQs: Setting up a business in KSA FOREIGN INVESTMENT zz

Non-saudis are permitted to invest in the Kingdom in minority, majority or 100% foreign-owned ventures, according to the Foreign Investment Act (FIA)

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They may not invest in oil exploration, drilling and production, real estate brokerage or land and air transport

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The FIA includes guarantees on the free repatriation of profits and capital

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It offers the right to buy property and allows ventures to sponsor their own employees in the country

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The FIA also established the Saudi Arabian General Investment Authority, a one-stopshop to facilitate the investment process

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The government is commited to maintaining the convertibility of the riyal, there are no significant restrictions on the inward or outward movement of funds by individuals or firms

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However, the Saudi Arabian Monetary Authority closely monitors foreign exchange transactions to deter speculation, fraud and money laundering

CHOICE OF BUSINESS ENTITY zz

The Regulations for Companies governs company formation and operation

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The eight possible forms of business organisation are the general partnership, limited partnership, partnership limited by shares, limited liability partnership (or company), company with variable capital, joint stock company, cooperative company and joint venture company

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In practice, the limited liability company is the most appropriate form of incorporation available to foreign investors

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BELOW: Al Marina has been designed to honour and build on the cultural demands of the province.

Diverse Dammam Renowned for industry and oil, Dammam’s tourism potential is often overlooked. Melanie Mingas discovers how the combination of a low-rise cityscape and a breathtaking landscape is transforming the Eastern Province

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s Saudi Arabia’s industrial base, Dammam is home to the main seaport of the Persian Gulf and some of the largest oil and gas reserves in the world.

It is oil and its related industries that have facilitated Dammam’s growth from a small fishing town of 2000 inhabitants to a city sprawling 710,000km2, home to nearly four million residents.

Today, Dammam reaches beyond its city limits to encompass Al Khobar and Al Dhahran, creating a single district powered by commerce and industry, under the jurisdiction of a single municipality.

Since the discovery of the first oil field in the 1930s, social and economic development has largely been shaped by the operations of the Arab American Oil Company (ARAMCO), from its headquarters in Dhahran.

From building new houses to converting old houses into schools, employing residents and offering construction opportunities for new, small and established companies, the organisation’s continued interests will next see investment being ploughed into roads, bridges and building the first high-rise towers in Saudi Arabia’s flattest city.

By and large, private investment is overseen by a network of government bodies, each tasked with ensuring that those looking to establish interests in the city have the right vision for Dammam’s future.

One of the planned initiatives to further

enhance the relationship between public and private interests is a series of internet portals which will become a “one-stop-shop” for direct communication between prospective private investors, contractors and developers, and these various state entities.

It will use the same model as other “e-government” services, which currently allow the public to communicate with the authorities.

“The purpose is to communicate with the world and with national areas for services and other requirements, but we are hoping for it to become even more effective than this. This will be the gate to becoming part of Saudi Arabia,” says Sameer Al-Gusaiyer, who is director of investments for the Eastern Province Municipality.

Speaking about two key projects; King Abdullah Civic Centre and a one million m² mixed-use development with the working name Amanah, Al-Gusaiyer adds: “There are some future projects in the private sector that will change life here within five or six years.

We will see another jump in business investment and opportunity.

“The plan is to have all of these projects shared with the private sector and have a committee outside of the government to handle and manage these investments.”

Growing industry

The primary industries in Dammam are oil, manufacturing and shipping, with activity

Education investments

$36.7b The funds allocated to build 1100 new schools and colleges

“The plan is to have all of these projects shared with the private sector ” concentrated in industrial zones away from residential and recreational developments.

The significance of the zones is outlined in the National Industrial Development Strategy, a blueprint for economic diversity on a national and international scale.

North of Dammam, Jubail Industrial City (JIC) is the largest industrial complex in the world. Previously famed for pearling, Jubail now houses oil refineries, petrochemical and fertiliser plants, steel works, a port and navy base, and the world’s largest seawater desalination plant, which provides half the country’s drinking water.

Now known as Jubail One, development continues and the final phase of Jubail Two is scheduled for completion in 2015, with the bulk of investment expected to be foreign direct investment (FDI).

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Market Explorer | DAMMAM

“The financial crisis and liquidity had an impact on the rate of investment and other developments, but Dammam is still a secure place” housing funds

$180b The amount invested into building 6.9 million housing units by 2020

BELOW FROM TOP: The King Abdullah Civic Centre, Dammam Waterfront, second view of the Dammam Waterfront development.

Bidding was extended to mid-December for the Kingdom’s largest gas plant, to be built by Saudi ARAMCO in Al Khobar. Upon completion, due in 2013, the Wasit plant will be capable of processing 2.5 billion ft³ of gas per day, using sources from the Arabiyah and Hasbah offshore sour gas fields.

Construction will be divided into four parts: a gas unit, cogeneration power plant, sulphurrecovery unit and natural-gas liquids fractionation facilities. Reports estimate the budget will be between US $6 billion and $8 billion.

Investment body Modon signed agreements this year to provide electricity for a number of industrial cities, including in Dammam, and the firm is also looking to improve infrastructure in these areas.

The final piece in the jigsaw is the region’s railway projects.

KSA’s three-phase share of the GCC-wide rail network is valued at $25 billion and will connect Jeddah to Dammam; Mecca to Medina via Jeddah and Riyadh to Jubail.

According to signal provider Siemens, the lines will feature the most up-to-date signalling and telecommunications equipment you can find in the world.

In addition, the $10 billion Saudi Landbridge project will boost vital trade throughout the country and between it and other gulf states.

It will be the first rail link between the Red Sea and the Gulf, linking Jeddah Islamic Port and King Abdullah Aziz International Airport with the Makkah-Madinah and Dammam railway lines.

Destination Dammam

In a complete paradox, Dammam’s second industry is tourism, and making the most of the area’s geography and heritage are a number of waterfront developments, recreational spaces and cultural buildings.

Unlike the religious tourism seen in other provinces, Dammam’s reputation as a holiday destination is purely about relaxation and culture, extending to the country’s largely expatriate population.

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Among the developments is the King Abdullah Civic Centre at the Dammam Corniche. The leisure and culture attraction features an amphitheatre, museum, courtyards, promenades, event venues and harbour and waterfront vistas.

“Dammam’s beaches are beautiful and when people visit they feel alive; people come from Riyadh and Jeddah to work and holiday here and they move here too. There is a lot of work in offices, construction, shopping and hospitals,” says Al-Gusaiyer.

“The growth and popularity are due to the strength of the economy in the city. When you have a good economy, people want to work and invest there and growth occurs faster,” he adds.

There are a number of communities and tourist attractions currently under construction, with private development spearheaded by the likes of Emaar and Injaz.

Emaar’s SAR 4.5 billion Khobar Lakes is a gated community of more than 2000 private villas, 11 mosques, childcare and healthcare facilities, schools, recreation clubs and a 113,000m² retail centre.

The second of nine residential villages in the 4.3 million m² development is currently under construction, with completion estimated for quarter one of 2011.

Complementing this vision is Al Marina, the “biggest project in the eastern province”, according to developer Injaz.

“It’s like a gated community but un-gated, a city within a city,” says the developer’s spokesperson Mohammed Rabih Itani.

Built around green spaces and community areas, the Al Marina project has been designed to honour and build on the cultural demands of the province.

“The country is changing; there are more expats in the Eastern Province and you have local demand from nationals. Al Marina offers a way of life and community living which you don’t see in other projects here,” adds Itani.

“When the development was launched there were no other such developments in the Eastern Province, but developers need to move towards

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XXXXXXXX Market Explorer | XXXXXXXXXX | DAMMAM

3.9%

Sector growth The level of real growth in the construction sector in 2009

View of the Al Marina development in Dammam.

”Developers in Dammam, the Eastern Province, need to move towards housing for the middle class to address the areas of real demand” housing for the middle class to address the areas of real demand.”

Upon completion, the 3.3 million m² development will include 636 villas, retail and recreational developments, schools and a mosque.

But more controversially, it will contain midand high-rise towers; a mainstay for almost every other city, but certainly a new concept for the city of Dammam.

“Whatever happens in the Gulf States will happen in Dammam. For example, now it hasshopping malls like those in Dubai and Dharan. Where as usually the region builds horizontally, we will see them building upwards now,” Al-Gusaiyer predicts.

Public entities are overseeing three major developments, the King Abdullah Civic Centre, Half Moon Bay and Amanah. Ongoing work will see extended opportunities for commerce and tourism.

Future trends

Far from a trend follower, developments in the city are specifically targeted to its needs, with even state bodies requiring economic and environmental approval from other divisions.

It is an approach that has allowed Dammam to strike balance between its industries and the resulting income sources.

There are still issues; Dammam suffers the same endemic housing problems as the rest of the country; the delayed introduction of a mortgage law has deterred investment from developers and the government no longer holds the real estate interests it once did.

In October, it was announced that 2000

affordable and sustainable housing units would be built across 10 locations in the Eastern Province as part of the Prince Muhammad Bin Fahd Affordable Housing Project; 148 will be built in Dammam, contributing to phase one.

In addition to providing housing, the project will also bring education and employment opportunities; aimed at a sector of society which is often overlooked.

Investment in the area is increasing and purchasing power in Dammam is strengthening again, according to Itani.

“There were projects launched but you didn’t see any movement on the ground. If you look at the past, for every 10 projects launched, maybe only two would take place. This happened all over the Kingdom.

“The banks stopped lending, especially for real-estate development. The financial crisis and liquidity had an impact on the rate of investment and other developments, but Dammam is still a secure place,” Itani says.

Aiming high

Dammam’s future will be pegged on government investment, region-wide innovations in design and the commonly tried-and-tested industries that have powered its growth and success to date.

Urging the private sector to take the lead, Al-Gusaiyer asserts: “If you have a common goal between the public and private sectors, difficulties won’t exist. The private sector can move faster and when it makes the first move it will find the public bodies are working towards the same goals.”

Dammam diary dates Show: ESTATEX

Organiser: Dhahran International Exhibitions Company (DIEC) Sector: Real estate and housing Date: December 14-18, 2010

Show: Buildex Organiser: DIEC Sector: Construction; building, interiors, landscaping and tools Date: February 1–5, 2011

Show: Saudi International Water, Electricity and Power Generation Conference and Exhibition (WEPower) Organiser: DIEC Sector: Energy sources and production for engineers, investors, agents and distributors Date: May 7-9 2011

Show: Ideal Home Exhibition Organiser: DIEC Sector: Interior design Date: May 7-11 2011

www.thebigprojectme.com | 35

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XXXXXXXX PROJECT UPDATE | XXXXXXXXXX | PARK AVENUE

The project will offer a range of retail facilities and restaurants.

Cashing in on Cairo Damac Properties tells The Big Project it has identified Egypt as an “extremely attractive market” and updates us on construction of one of the region’s largest mall projects, Park Avenue in Cairo

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ttracted by the “democratic attitude, corporate culture and pro-foreign direct investment (FDI)” nature of Egypt’s government, developer Damac Properties says the country has a lot of development potential.

“Damac Properties views Egypt as an extremely attractive market. It has the largest population in the region, very high tourism numbers and strong, consistent growth. Egypt’s economy is forecast to grow 6% this year, outpacing most other countries in the MENA region,” explains Damac Holding Co senior vice president Niall McLoughlin.

“Egypt is one of the top destinations for investment in the Middle East and ranks just behind Saudi Arabia in terms of investor confidence. Given the location, the growth and the government’s commitment to FDI, it is easy to see why so many investors are looking to Egypt to achieve the growth levels they have previously experienced in more traditional markets,” he continues.

Among the developer’s projects underway in the GCC, is the Park Avenue mall project in Cairo. The first construction contract was awarded by developer to The Egyptian Engineering and Trading Company (SIAC) in September, with works commencing soon after.

The high-end retail destination will be among the biggest mall project in the Middle East, featuring more than 1700 shops.

To be completed in three phases, the first phase involves the construction of 309 retail units over a built-up area of 29,206m². Egyptian Consultants Group (ECG) has been appointed to oversee detailed design and supervision and Arabian Company is the grading contractor.

“Egypt’s economy is forecast to grow an estimated 6% this year, outpacing most other countries in MENA” “Initial grading works have finished and SIAC has completed excavation of blocks A and B,” reveals McLoughlin.

“Our commitment to customers — dependant of when they made their purchases — is to handover in quarter one, 2012.

Damac is the master developer for the entire project situated at New Cairo, which includes the Park Avenue shopping district overlooking a central public park, luxury villas at Hyde Park and Centre Ville apartments, inspired by French architecture.

SIAC, which is employed under a 27-month contract to complete phase one, was recently rated as a ‘first-class’ contractor

Building design will fuse Mediterranean warmth and classical sophistication, according to the developer.

Project partners Master developer: Damac Properties Contractor (phase one): The Egyptian Engineering and Trading Company (SIAC) Grading contractor: Arabian Company Design consultant: Egyptian Consultants Group (ECG)

by the Egyptian Federation for Construction and Building Contractors.

“This milestone further displays Damac’s commitment to deliver luxury by partnering with a prominent quality main contractor,” Damac Properties for Development CEO Alaa Ayou said in a statement.

Since Damac Properties was established in 2002, the firm has rapidly expanded operations into North Africa, Jordan, Lebanon, Qatar and Saudi Arabia.

Having already delivered more than 3500 units into the local market, the company is expected to have handed over approximately 7100 by mid-2011 across the GCC. Currently it has around 12,500 units under construction spanning the region, according to the company.

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Constructing World Cup-class stadiums As Qatar ushers in a new age in stadium design, ahead of FIFA’s decision on the host nation for the 2022 World Cup, Melanie Mingas explores the projects Qatar will pursue, bid or no bid

W Paul Fletcher.

Yasir Al Jamal.

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hen Beijing’s Bird’s Nest stadium was constructed for the 2008 Summer Olympics, nearly 5000 local residents were controversially displaced to accommodate the 91,000-seat structure, covering an area of 258,000m² and calling for 42,000 tons of steel.

But the US $500 million construction tab was considered so high, the ensuing disputes delayed the development.

Similar debate followed investments in South Africa’s stadiums, with five renovation projects and five new builds.

In contrast, feedback following the announcement of Qatar’s bid for the 2022 World Cup has been overwhelmingly positive.

Linked to the Qatar National Vision 2030, the plan is to boost sports tourism on a local scale, while creating a positive legacy for developing countries elsewhere. Prior to the decision, the Bid Committee says the projects will go

ahead regardless of the result, providing “numerous opportunities to the construction and facilities management industries in all types of projects”.

“The Qatar 2022 Bid [Committee] approached the stadium design very seriously; we did not just take FIFA requirements and put them into a building — that is an easy task. We improved the process by implementing all necessary elements to leave a long-term legacy to the country, the region and the world of football,” says the Committee’s technical director Yasir Al Jamal.

Construction materials have been selected to complement the climate and enhance Indoor Environmental Quality (IEQ) and are all sourced in the region. The stadiums are wind proofed and protected from direct sunlight to maximise cooling, and for the first time will use cooling technology powered by a zero-carbon, solar-energy infrastructure; reducing

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XXXXXXXX THE ICONIC BIGSTRUCTURES 5 | YOUR | XXXXXXXXXX GUIDE| QATAR stadiums

ABOVE AND BELOW: Construction materials for the Qatar stadiums have been selected to improve the overall indoor environmental quality.

“We improved the process by implementing necessary elements to leave a legacy to the country, the region and the world of football”

on-the-pitch temperatures to 22°C, despite 40°C sunshine.

It is these measures that are used to future proof stadiums; in terms of aesthetics and sustainable maintenance. The overall performance of the stadium will be monitored via an “intelligent” building management system (BMS).

Electricity will be generated by solar power, recycled grey water will be used for irrigation and composting facilities, and even food packaging and souvenirs will be manufactured from

re-useable and recyclable materials. Adding to the sustainability demands is the need for a versatile complex, which can be used long after 2022. Designed as mixed-use recreational developments, rather than solely sporting venues, Qatar’s stadiums are constructed from modular components, allowing them to be downsized afterwards, with the dismantled pieces donated to developing countries and the re-sized venues used as home grounds for the country’s first division football clubs.

“Designing and building stadiums is a big challenge, there are many factors to be considered, such as the sports they are designed for, the local context and social environment, new technologies, spectator capacity and sustainability, among other factors,” adds Al Jamal.

“Some of the biggest mistakes happen when all these factors are not considered sometimes leaving the community a building that cannot be used as originally intended or one that cannot be properly maintained. It creates a big burden for local organisations, governments or entire societies and generates a sustainability issue,” he says.

No own goals

The stadiums constructed in Beijing, Athens and Montreal provide many lessons for Qatar’s bid committee, and architects. From wasting public money to designs lacking foresight, the

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CLOCKWISE FROM ABOVE LEFT: Al Gharafa stadium is set to double in size to accommodate 44,740 spectators, Al Khor’s 45,330-capacity stadium with its flexible roof, the 45,120 bowl-shaped Al Shamal development.

“I don’t know a footballer in England who cares how the stadium looks from the outside. You want to experience the atmosphere”

seating plan

criticisms are loud and clear. But for those who play in the stadiums, only one thing matters; atmosphere.

“My industry has been infiltrated by architects who want to win an award for the aesthetics of the building rather than design something with atmosphere,” says stadium consultant and former footballer Paul Fletcher, MBE. “It’s more than the quality of the pitch and stadium and you can be very critical, but I don’t know a single footballer in

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England who cares how the stadium looks from the outside.

“You want to experience the atmosphere and spectators’ passion.”

Having worked on the UK’s StadiArena, a stadium which transforms into a multi-use arena, he is now pioneering a new format of design which puts atmosphere and community at the heart of the development.

“The problem is that the football stadium is a completely illogical building.

91,000 the number of seats at the beijing bird’s nest stadium

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Pre-construction decisions Includes: Location, capacity, design, playing field orientation, “green goal” (water, waste energy and transport programmes), and community relations

Safety Includes: Structural safety, fire prevention, stadium control room, television surveillance system, first-aid rooms, design and management of the stadium

Orientation and parking Includes: Public access, emergency services and helipad

Playing area Includes: Recommended dimensions, grass and artificial turf quality, sub’s benches, as well as advertising

Players and match officials Includes: Spacious and high-quality dressing rooms and other facilities to ensure players and match officials can carry out their activities in comfort and safety

Spectators

You build a stadium with a 50-year lifespan and it is often only used for one year.

“The question is how to make use of it during the other 49 years.”

With first-hand experience of more than 30 projects throughout the UK and Europe, Fletcher also holds the patent for the StadiArena. The concept focuses on the revenue and legacy of stadiums, “revolutionising” how they can be adapted to serve local communities.

His next project is the Stadium of the Future concept, due to launch early 2011. Calling it the “new generation” in design, the stadiums are self financing and community orientated.

“We see stadiums not as the building surrounded by 10 acres of car park, but the centre of a community.

“The only way you can achieve that is to take the pitch up a level.”

Calling it “common sense”, it’s an idea he first approached with architect Robert Kennedy from Scottish firm Miller and Partners.

“We both realised the only way to turn these stadiums into community buildings is to use the ground-floor space so the whole building becomes a community building seven days a week, rather than a sports stadium.

“It will probably be the first design that pays

for itself in terms of returns on retail and other aspects,” he adds.

Includes: General comfort, spectator area, disabled access and merchandising stands

Stadiums for the future

Hospitality

With social responsibility and legacy as high on Qatar’s future agenda as the football itself, the story of the 2022 World Cup is already unfolding differently from that of the country’s predecessor’s.

Saying it is “ready to make history”, the bid committee has already run a number of outreach programmes in Qatar, Lebanon, Pakistan, Nepal and Syria.

The 12 stadiums will bring construction opportunities to hundreds of national and international companies and are expected to create jobs for thousands.

Furthermore, Qatar is already confirmed to host the 2011 Asian Cup and is said to have the support of the Asian Football Confederation (AFC) president.

“The Middle East is an emerging region for sport and because there is quite a lot of wealth, the region seems to do it right and invest in quality sports and leisure facilities, whether that be golf or tennis, simply because it is a little more affluent than Europe,” concludes Fletcher.

XXXXXXXX ICONIC STRUCTURES | XXXXXXXXXX | QATAR stadiums

FIFA’s 10-point specifications for World Cup stadiums

Includes: High-quality hospitality for special guests and commercial partners is an increasingly important component of a football stadium’s funding

Media Includes: Stadiums should be designed to allow for the highest-quality media coverage, with providing a media box, meeting media requirements and offering television infrastructure

Lighting and power Includes: Power supply, technology, environmental impact and an installation commission to meet the needs of broadcasters, spectators, players and other officials

Communications and additional areas Includes: Communication requirements, programme development and telephones

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BELOW: CEO Graham Clack.

Powering construction As generator provider Byrne Equipment Hire gears up to further expand its Gulf operations, CEO Graham Clack explains how the company’s power lies in its people

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or the majority of companies, improving and expanding operations begins with the product catalogue, but for Byrne Equipment Rental its energy is contained within its workforce.

Ahead of a Gulfwide expansion programme, the company is implementing an “aggressive” strategy to overhaul its IT and HR divisions, building on a reputation which has seen its flagship products used by Qatar’s International Housing Group, Jeddah Airport and a number of sporting events in Dubai and Abu Dhabi, among others.

Commenting that the company’s future operations have the potential to make Byrne Equipment Rental “first class”, CEO Graham Clack says the plan for growth will be pegged to a quality approach.

“Our product offerings are likely to become more and more solutions orientated rather than simply offering up items of equipment. If we can work with clients to help overcome the obstacles or issues they face, we can be of far greater value. We are also likely to offer more niche and specialist solutions.”

Inviting new and existing clients to collaborate to achieve this, he adds: “We expect to increase our standards of performance to

become first class in every regard. As with most sectors competition is intense, often from international players who are entering the regional markets. But while this tends to put the whole business under pressure; that same pressure is driving us to constantly review and improve the way we work.”

Beginning with a small fleet of basic plant equipment in the early 1990s, Byrne thrived on the growth of the marine, oil and gas industries to cultivate a portfolio of more than 300 product types. Today, the company operates in Dubai, Abu Dhabi, Jubail, Al Khobar, Yanbu, Muscat, Sohar and Doha, with a new office soon to open in Riyadh, alongside plans for “additional branches” to be launched across Saudi Arabia in 2011.

Clack says one of most popular items spanning these markets is the power generator.

Providing “full power solutions”, including mini power stations for residential districts, labour camps and construction sites, Byrne also continues to add oil and gas-specific equipment to its catalogue, including desiccant air-dryers and oil-free compressors.

Clack cites a lack of distributed power as the main driver for demand: “The rate and scale of construction projects throughout the region

inevitably results in areas under development or recently developed projects, which are awaiting permanent power connections, thus creating the opportunity to provide temporary power.”

Byrne’s construction-related operations encompass equipment rental, a projects and events division, as well as an equipment and tool hire division.

In addition to the company’s geographical diversity, the company will soon provide large chiller units and portable buildings for use on film sets.

Clack says Byrne’splan is for sustainable growth and in its diversification, the company will also roll out a number of environmentally sustainable solutions.

“We recognise that the world is changing and therefore we are working to develop and offer a number of solar power solutions, there is no doubt that this will be a prime area of product offering over the coming years,” says Clack.

“It’s an exciting time and much is in the pipeline,” he adds.

DID YOU KNOW?

In 2010 alone, Byrne was involved in a number of five-star events throughout the UAE, including:

•

Abu Dhabi Golf Championship

•

Omega Dubai Desert Classic

•

Burj Khalifa opening ceremony

•

Abu Dhabi Tennis Open

•

Dubai Tennis Open

•

Abu Dhabi Yacht Show

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Dubai World Cup Horse Race

•

Dubai Football Sevens

•

T20 Cricket

•

Arabian Nights

XXXXXXXXHOTSEAT SUPPLIER | XXXXXXXXXX | BYRNE

LEFT: Equipment supplied by Byrne.

www.thebigprojectme.com | 43

Suppliers in the spotlight A round-up of the latest news and announcements from industry suppliers in the Middle East

Bayer Material Science launches polycarbonate sheet

Lafarge introduces cement that is sulphate-resistant

Häcker reports high demand in Emirate’s fit-out market

Explosion-proof material pioneered to provide extra insulation and versatility

New product is specifically designed for use in UAE and Oman

German kitchen manufacturer attributes strong sales to “discerning” UAE market

A new alternative to glass has been launched by polymer manufacturer Bayer MaterialScience.

The polycarbonate sheet, made of the company’s trademarked Makrolon, can be used for application on interior and exterior windows, walls and ceilings. The surface provides heat insulation that is comparable to that of tripleglazed glass, without the weight or bulk of actual glass, according to the company.

“Transparent Makrolon sheets offer a similar level of light permeability, plus they are safer and provide more freedom of design. That is why they are a good alternative to glass,” said Bayer MaterialScience global project manager Dr Volker Benz.

The products, which were recently showcased at EXPO 2010 in Shanghai and K 2010 in Dusseldorf, are also light enough for use as temporary interior structures, such as exhibition stands.

“Makrolon sheets are extremely flexible in their range of uses, they can be easily shaped but nonetheless remain robust,” added Benz.

Becoming a brand in its own right in 2000, Makrolon as a plastic is also used in the manufacture of CDs, car headlights, eyeglass lenses and water bottles. The company claims that it is so common; people come into contact with the material on a daily basis.

Lafarge Emirates Cement has added a new sulphate-resistant cement, Shield, to its broad product catalogue.

Sheild was launched by CEO Antoine Duclaux (pictured above) at a ceremony in Dubai. The product is designed for use in areas with high sulphate concentration in the soil, ground water or any nearby seawater.

It complements Lafarge’s three other products, to bring the types of cement now provided by the company to four.

The products are: Classic Portland cement; the environmentally-friendly Flexi limestone cement, produced by an inter-grinding cement clinker with strictly-controlled, high-purity limestone and gypsum; and GGBC, ground granulated blast furnace slag cement.

“The new product will be highly effective to build durable structures in sulphate-rich areas.

Our products have already garnered substantial market share, and we believe our latest offering will further expand our reach into untapped regions,” said commercial director Adham El-Sharkawy.

“We are confident our range will help increase sales revenue and improve financial performance for the remaining part of the year in line with the industry forecast of a pick-up in demand,” he added.

Kitchen manufacturer Häcker has reported higher sales of its new ‘Phantom’ kitchen island after its first two months in Dubai, than in an entire year on the UK market.

The firm credited the popularity of the Phantom line to a “discerning” client base, which actively seeks exclusivity.

It added that demand for high-quality products had driven the market.

Formed from natural stone, Phantom uses Silent Move technology to double the available work surfaces on kitchen islands.

The sliding, half-ton stone cover surface can be moved “with a single hand”, revealing a flush mounted sink and hob underneath; doubling the available surface area, without permanently losing space in the room.

The technology is patented to Häcker Kitchens and has already won the BMK award for kitchen design innovation.

“We find that customers in the UAE market are extremely discerning about their home interiors and demand furniture that is very innovative and at the pinnacle of industry designs,” commented Häcker Kitchens’ UAE director Samir Ranavaya.

“The Phantom line of kitchens offers the exclusivity that much of the market looks for in the UAE,” he added.

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Emirates Steel to dramatically increase its production Capacity growth will reduce dependence on imports, according to the firm Emirates Steel will increase capacity to a “record” six million metric tons per annum by 2013, following the implementation of a phased expansion programme.

Addressing the Iron and Steel Conference in Italy, engineer and vice president of projects, Ahmed Al Dhaheri said: “Following the completion of our phase one expansion programme, our company has developed an output capacity of two million tons per annum from 650,000 in 2006. On completion of phase two, our capacity will reach three million tons per annum in 2011 and six million by 2013.”

The phase one expansion of the UAE plant, which was completed in 2009, cost AED 3 billion, with the phase two expansion budgeted at AED 6 billion. Phase two A is scheduled for completion in 2011, with phase two B expected by 2012.

Following the conference, around 80 steel experts were invited to the Emirates Steel plant in the Industrial City, Abu Dhabi to see the facilities and production processes.

“The high-level delegation was familiarised with our various expansion projects and were given an understanding of our production processes and our range of products,” recalled Emirates Steel’s senior vice president of operations Carl Andersson.

Enerpac brings Titanic Jotun launches lifters to the region marble effect paints Latest hydraulic technology capable of lifting 75,000 tons launched by Enerpac

New Lady Effects line launched to meet demand for artistic finishes

High-precision hydraulic equipment, which can move loads heavier than the Titanic, has been introduced to the region by Enerpac Integrated Solutions Middle East.

The Titanic lifter, named for its maximum capacity load, uses 700-bar technology to centrally control compact, high-pressure hydraulic cylinders. The lifters are used in construction, manoeuvring and positioning and can work to a 1mm precision. The technology can also account for variation in load over the floor or keel of the structure.

The Titanic can lift up to 75,000 tons while retaining its high precision, according to the company. They are suitable for use on drilling platforms, exploration machinery, bridges, wharves and loading facilities.

The products were showcased at the OSEA Asia Exhibition held in Singapore at the end of last month. Wang commented that the exhibition showcase was “timely” as South Asia intensified its onshore and offshore resources development, including deep drilling projects in more than 1000m of water.

“This means system operators can maintain outstanding control over huge numbers of cylinders to apply exact force in particular parts of a structure as it is hoisted for weighing or balancing, or prior to skidding into position for launch,” said Enerpac South East Asia managing director Joseph Wang.

A range of water and oil-based paints, which create shimmering, sparkling, glazed and marble finishes has been launched by Jotun.

The ‘Lady Effects’ paints have been specifically designed to allow customers to be “more artistic in selecting the colours to complement their lifestyles and personalities”, according to the company.

The range includes water-based Lady Effects Pearl, Lady Effects Metallic, Lady Effects Stucco Antica and the oil-based Lady Effects Glaze. All the finishes can be achieved in two coats.

“Regional customers are more actively seeking for ways to incorporate their sense of style into their homes, with statistics showing that 59% of consumers in the Middle East would like to express themselves through painting the interiors of their homes,” said regional marketing director Per Olav Ramstad.

“As a firm believer of innovation as the primary driver of growth in this highly dynamic market, we have developed Lady Effects to offer customers in the United Arab Emirates the opportunity to use their homes as the canvas where they can showcase their personality and personal preferences.

“As a market leader, our company deems it very important for the firm to continue coming up with avant-garde offerings that create standards and start trends in the regional market,” added Ramstad.

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XXXXXXXX TRENDS | LIGHTING | XXXXXXXXXX

By paying up to 30% more for lighting solutions at the time of construction, savings can be made of up to 70% during the entire project lifecycle.

GREEN LIGHT

Four high-tech lighting suppliers debate the most energy-efficient way to illuminate a building What are the benefits of energysaving lighting solutions?

Thierry Burot: Firstly, the energy saving is around 70% compared to conventional bulbs, secondly we are speaking of a 50,000-hour lifetime, which is about 15 years based on eight hours of daily usage, even more when you install intelligent sensory systems. The third benefit is the heat dissipation because LED is an electronic component. Finally, as this form of lighting is fully recyclable, there is nothing which can be harmful to the environment.

Karim Aly: Compact Fluorescent Lamps (CFL) use a completely different technology to incandescent alternatives. They consume about 80% less power to give out the same amount of light, last up to 10 times longer and give off 70% less heat on average. Using CFL allows us to lead a more sustainable lifestyle without having to compromise on quality and at the same time drastically cut our electricity bills.

Carol Prince: The main benefit of metal halide systems is the intense illumination they provide. This primary characteristic also has a secondary, space-saving benefit as well. A single metal halide fixture is capable of providing several hundred watts of light energy while other lighting systems require multiple units to provide the same light output. Metal Halides also offer aesthetic benefits that cannot be reproduced by fluorescent lighting systems.

Shadi Kharouf: No matter where they’re installed or how big the system, every Lutron product saves energy by reducing electrical consumption. Taken as a whole, Lutron light controls have reduced electrical use by 9.2 billion kWh, which reduces our customers’ electric bills by US $1 billion annually. Also, since

The Panel LED lighting: Thierry Burot CEO, Switchmade

Compact fluorescent lamps: Karim Aly Managing partner, Ecobility

Metal halide: Carol Prince Marketing director, RWN Trading

Energy saving dimmer switches: Shadi Kharouf Specification Sales Manager, Lutron

”Quantum maximises the efficient use of light to improve comfort and productivity, simplify operations and save energy”

dimmers extend lamp life, customers have to buy fewer bulbs, and that reduces the energy and environmental impacts associated with the manufacturing of fluorescent, incandescent, halogen, and other types of lamps.

How versatile is each technology in adapting to different designs?

TB: The technology can be adapted to any application; warehouses, road lights and decorative; for indoor, gardens, landscaping, petrol stations, street lighting. Today, we can meet every type of requirement with LED. KA: When we developed the ILLUME range of CFL, a fundamental design principle was to ensure that they meet the aesthetic and performance requirements.

They have an ultra compact form to fit comfortably into almost all light fittings and come in familiar shapes. To satisfy all design demands, they are available in a variety of wattages creating different intensities and colours, from mild warm to crisp cool white.

CP: Metal halides are available in different wattage and colour temperatures. More importantly, they are differentiated by the manner in which they start, falling under either “probestart” or “pulse-start” systems. However, it is crucial to distinguish the different bulb types to accurately match the bulbs and their wattages to their ballast type as they are system-specific; the “wrong” bulb will not work with incompatible systems.

SK: Quantum maximises the efficient use of light to improve comfort and productivity, simplify operations and save energy. This powerful and efficient system dims or switches all electric lighting, and simultaneously controls daylight

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XXXXXXXX TRENDS XXXXXXXX | LIGHTING | XXXXXXXXXX | XXXXXXXXXX

over the years

old timer

20

1950s

Over the past two decades, cfl has exploded in popularity across the globe

Lutron was established in 1950 new york and today provides its services in many markets

Switchmade’s CEO Thierry Burot.

RWN’s Carol Prince.

using automated shades. Quantum easily integrates with building management systems and is an ideal solution for new construction projects. We also manufacture automatic shades, controlled by Quantum to achieve a complete light control management system.

How long has the technology taken to develop?

TB: LED has existed for more than 50 years; you have it in your CD player and TV. Over the last 10 years, people have been talking about generating light and in the last three or four years, the performance has improved and the products are cost effective. Today the initial investment is still more, but there is a return and as the technology develops costs will reduce. Samsung and Sony for example have invested a lot in this technology.

KA: With the technology available today, CFL bulbs have become extremely versatile.

They are available in variety of shapes and sizes that are a far cry from the oversized spiral design that was common in the 1990s.

Over the last 20 years, CFL has exploded in worldwide popularity.

SK: When we began in the late 1950s in New York, lighting control was complicated and expensive, requiring bulky rheostats that used a lot of energy and generated a great deal of heat. Today, every product

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is guaranteed to save energy by reducing electrical consumption. We have hundreds of lighting-control devices and systems for fluorescent, halogen incandescent, magnetic low-voltage, electronic low-voltage and LED light sources.

Has the technology been widely adopted here?

TB: Most of the projects that are currently under construction or in the delivery phase were specified two or three years ago and at that time it was not an option to recommend LED apart from for small, decorative installations. It wasn’t cost effective and there were fewer products. Today our main challenge is to educate people and get the products specified. More and more we see that LED is demanded by the consultants; especially as the price drops.

KA: Up until a few years ago the use of CFL bulbs in the UAE was almost entirely limited to commercial applications where aesthetics and ambience were not essential factors.

More recently, however, we have started seeing increased demand from the hospitality sector, in particular, and individual endusers for domestic use.

CP: Those that don’t adapt will get left behind. The need for move with technology is paramount for being part of the lighting industry of the future. We work very closely

with manufacturers and clients alike to find out what is required and what is available and often from these discussions we are able to find a solution for a project’s needs.

SK: One major project we have worked on is the New York Times Company building, where we delivered an energy saving of 70%.

Similar measures on projects in the Middle East have allowed us to deliver the same benefits here, working with Aldar and Mubadala in Abu Dhabi (ADFC) and Oger on the King Abdullah University of Science and Technology. The use of lighting control systems are now a must in any green project or sustainable building. In fact, lighting control systems are now essential according to LEED standards.

How does education about the environmental impact of energy-hungry lights effect your business?

TB: For us it’s a global movement, but for some countries it’s not their first priority.

Europe is well educated and pushing for green and respectful solutions but the level of carbon emissions per person in the UAE is the highest in the world.

KA: The issue has become quite topical in recent times as four of the six GCC countries are among the top 10 highest carbon emitters per capita in the world. This has

TRENDS | LIGHTING

“LED is the product of the future, but contractors don’t recognise this. We have to convince them to make the investment”

Shadi Kharouf.

Ecobility’s Karim Aly.

prompted a heightened sensitivity among all layers of society towards energy conservation given the direct correlation between energy consumption and carbon emissions.

When in pursuit of ways to reduce energy consumption or otherwise improve efficiency, the CFL bulb is often touted as one of the easiest and most effective ways for consumers to achieve that goal. As a result, we have naturally witnessed a positive impact on our business.

CP: A large part of my role is to inform and discuss the need to move with the times in respect to the energy requirements of the region. It is a well know fact that there are areas that have insufficient energy supply for the demand needed. Therefore we need to work closely with authorities, facilities managers, architects and designers to let them know the best solutions.

SK: This issue is at the forefront of the public and government agenda, with new standards now being introduced for producing greener, more sustainable buildings. People are now starting to understand that, by paying 30% more at the time of construction, they will experience a saving of up to 70% on bills for years to come.

What are the main issues facing your operations?

TB: LED is the product of the future but contractors don’t recognise this.

We have to convince contractors because they make the investment in the technology and the final user makes the return.

KA: Two issues immediately come to mind; the absence of regulated quality and efficiency standards for consumer products and the incredibly low cost of electricity in the Middle East region.

The first has led to a plethora of low-cost, poor-quality products with many consumers ending up with a disappointing user experience below expectation.

Additionally, the cost of electricity in the region is simply the biggest hurdle to creating an energy-efficiency culture. The

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TRENDS XXXXXXXX | LIGHTING | XXXXXXXXXX

”Metal Halides, LED and CFL are all more expensive than the traditional incandescent lamp”

Contractors are urged to invest to save operational costs.

payback period of replacing an incandescent bulb with a CFL in Europe could be as quick as two weeks based on 24-hour utilisation, whereas it could take as long as three months here in this region.

CP: Price is probably the biggest issue we come against. We talk to clients about sustainable options and pay back which can be as little as 14 months or five years, but attitudes tend to be rather lax in terms of the bigger picture.

Metal Halides, LED and CFL are all more expensive than the traditional incandescent lamp and we need people to look beyond the pay out at day one to consider the benefits of long life time of these bulbs and the payback terms which are definitely worth adding into your management strategy.

KA: The future of lighting is without doubt the LED. It is more efficient, emits virtually no heat, lasts longer and is environmentally friendly.

However, the technology is still evolving and its viable applications remain limited compared to the wide array of applications served by incandescent, halogen and fluorescent technologies.

How and why has demand changed over the last five years?

TB: Five years ago it was a very tough market; the technology was extremely expensive and people were usually cautious, but now our products have increased in terms of performance. When we started in Europe we knew we were on the right foot and that this would be the future. We already have six people working in the region and this number will increase because the demand is huge. There isn’t the same demand in the European construction market.

KA: I believe that the changes in demand over the last five years are a result of two major drivers. The first is the increased awareness being created through the roll out of energy-efficiency campaigns. An example would be the “Make the Switch” initiative, which subsidised the retail price of one million CFL bulbs to just AED 5 (a 70% saving) to encourage adoption. The other is the emergence of more relevant product offerings that satisfy the consumer’s specific needs, such as the right shapes, wattages, colours and quality. Before ILLUME Energy Efficient Bulbs were introduced here most of the CFL bulbs available had inferior specifications to the exact same product in North America or

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CP: The need to be sustainable will dictate the advancement in lighting technology. There is no ignoring the fact that too much energy is being used and wasted and the lighting industry has to work together to find a solution where we can offer our clients superb quality, sustainable light bulbs at a price that suits. It’s a tall order, but one that I am sure is achievable if you consider the advancements that have been made over the last 20 years.

Europe, and so didn’t quite meet the majority of expectations.

What technology do you think will be available in future?

TB: The incandescent lamp is more than 100 years old now, it has improved but it is still similar to the first model. For LED, we have completely changed the principles. Two or three years ago the lumen per watt was about 20 or 30, now it is above 100, which is better than any conventional lighting apart from metal halide.

SK: The demand for sustainable buildings here is massive and we’re expanding our operations across the gulf in response. Whatever technology is available our switches are versatile enough to meet demand; overall contributing to energy savings.

Bright spark

100 The incandescent lamp is now more than 100 years of age

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RIGHT: At the centre of the development stands a 1001m tower.

Building a

work of art CivicArts Eric Kuhne & Associates founder Eric Kuhne highlights the cultural and community values behind the design of Kuwait’s US $86 billion Madinat Al Hareer ‘City of Silk’ project, currently under construction

P

rimary infrastructure and enabling works are currently underway on Madinat Al Hareer, the US $86 billion mixed-use ‘City of Silk’ development in Kuwait.

The huge investment is expected to lead to a contribution of more than $160 billion to Kuwait’s national income during the development’s lifecycle.

Deemed a ‘gateway to the silk route’, Madinat Al Hareer has the potential to also become a gateway to Iraq, Iran and Central Asia, coupled with the Bubiyan sea port and new airport, the city will underpin the revival of the traditional silk route to become a global trading and logistics hub, according to masterplanner and designer CivicArts Eric Kuhne & Associates.

“When planning the city, we took in a number of considerations based on the history of Kuwait and the many silk routes twisting through the land. Today, these silk routes are designed by an entirely different system of trade,” says founder Eric Kuhne.

In line with this, it is hoped the development will reduce dependence on the oil sector by enabling diversification into non-oil sectors, such as manufacturing, financial services, real estate, trading, logistics and hospitality.

Another significant objective of Madinat Al

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Hareer is employment creation. With a limited number of opportunities for the growing number of Kuwaitis entering the workforce (60% of Kuwait’s population is below 25 years of age), the project is expected to create 430,000 jobs — mainly knowledge-based roles available in the private sector.

“We began to look at creating infrastructure to inform how Kuwait’s employment profile could change from subsidised, with a large percentage of the population on the public-sector payroll, to entrepreneurial employment. One of our objectives was to create nine new employment centres in the heart of the city to create opportunities,” explains Kuhne.

Furthermore, the integrated urban development for more than 700,000 people will facilitate the population growth in Kuwait, forecasted to increase to five million by 2030 “One of the key design considerations has been creating a community. We have largely based this on judging how far people are willing to walk to pray; around 300-350m, and reflecting this in the distance between residences and local amenities.

“Once completed there will be 30 communities comprising 25,000 people, each of these will cater to the unique requirements of the next

Construction trivia Name: Madinat Al Hareer (City of Silk) Location: Subiya (Northern Kuwait) Size: 250km² Investment: Approximately KD 25 billion (US $87 billion) Time period (full project): Approximately 25 years Time period (phase one): Approximately five to seven years (from 2006) Local advisor: OHA, Bader Al-Salman Kuwait Architect and master planner: CivicArts Eric Kuhne & Associates, Eric Kuhne UK David Beale Economic Analysis: KPMG, Sharat Seth Dubai Strategic advisors: Sq. Ft. Consulting, Shavak Srivastava Dubai Legal analysis: Al-Khebra, Moh’d Dallal Kuwait Osama Abdul Jaleel Ghina Malik, Shearman & Sterling, Lee Kuntz USA John Opar Environmental, fisheries and engineering: Atkins, Robert Whitcombe UK, Terry Bradbury

The expected return on investment to be achieved throughout the project life cycle

Al Badeia Resort and Preservation: A National Wildlife Sanctuary covering around 200 hectares

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LONG-TERM Payback

City components

Jaber Al Ahmed Bridge: Spanning Kuwait Bay, the new bridge will connect the City of Silk to Kuwait City within a 17-minute drive Silk Road — Free Zone: A free zone for trade, investment and business incubator developments, located close to a new international airport Business City Centre: A centre for finance, trade, commerce, business and international management Convention and exhibitions: The project will feature extensive convention and exhibition facilities.

Sports City and Sports Academy: A sports centre and resort will occupy the centre of the riverside Cultural City Centre: A new centre for diplomacy, culture and academia. Museums will include an archive, visual and performing arts, archaeology and crafts Resort and hospitality: Extensive leisure facilities will be developed in all four of the city centres Leisure City Centre: Gardens, marinas, parks, recreation facilities and a concierge service

generation which is expected to live to 80 years of age. While incorporating old architecture in the city designs, we will take into account that a person’s average amount of leisure time has also increased four times in the past 100 years,” explains Kuhne.

Drawing on the rich tradition of Arabic Garden design from around the world, ribbon parks and gardens interlaced with lakes, ponds and canals will landscape the development.

“From an aerial view and on foot these cities will instantly be recognised as Middle Eastern cities,” says Kuhne.

At the centre of the development, however, is a huge tower.

“The client wanted the tallest tower in the world, but we suggested a 1001m-high, 250 storey structure to symbolise the 1001 Arabian knights. The tower will be a major revolution in the way we think about designing tall buildings,” he continues.

The twisting tower will create a vertical community made up of seven neighbourhoods stacked on top of one another. Three blades will terminate at different heights, each featuring cultural, civic, and religious amenities for the residents, workers and guests.

The City of Commerce makes up the first stage of the development, which is expected to be completed within two years.

“I believe the whole development is a work of art,” says Kuhne.

XXXXXXXX CASE STUDY| XXXXXXXXXX | CITY OF SILK

$160m

Environmental City Centre: Featuring a centre of science, research, ecology and the natural environment Media City: An expanded media, internet and communications centre Film City: Specifically targeted to create a new movie production industry for the Arabic world Industrial City: A new light-industrial centre, developed adjacent to the Advanced Enterprise Zone and Business City Centre Education City: Partnerships with international educational institutions will expand the reach of Kuwait’s Tertiary Education system Health City: The project will include advanced treatment centres, research facilities, specialised medicine and pharmacology, prevention strategy, rehabilitation as well as nutrition centres Lifestyle zones: Each community will be branded with a distinctive lifestyle offering Housing: Expanded housing plots, diversity of housing types and family amenities Mubarak Al Kabir Tower: Towering 1001m creating a vertical community of seven neighbourhoods

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Construction Products Holding Company director for business development and administration affairs Dr Faysal Ibrahim Alaquil offers advice on challenges attracting the right staff and retaining them

C

onstruction companies are facing difficulty in attracting talent due to a lack of employee loyalty and competition from foreign markets, according to Construction Products Holding Company (CPC) director for business development and administration affairs Dr Faysal Ibrahim Alaquil.

Speaking at The Big 5 conference, last month, he said attracting and retaining the “right people” was as much a marketing issue as it was a management issue.

“Corporations are cutting corners to survive; they’re unable to maintain the juggling act of affording good employees and maintaining their welfare and job satisfaction.

“A substantial effort must be made to develop human capital to enable the Middle East construction market to innovate,” he added.

Social responsibility

The idea of becoming an ‘employer of choice’ is one that remains rather unexplored in this region, Alaquil observed, adding that the benefits of doing so were many.

However, he claimed to have witnessed a trend emphasising the importance of social responsibility in the region’s firms, which he believed to be closely linked to becoming an employer of choice.

“In the olden days, corporations were very busy looking to increase profit and expand production. However, today in KSA companies are becoming more focused on social responsibility and the role any firm can play in providing services to the local community.

“Companies cannot become an employer of choice without a code of ethics and without operating the business with strong values, including integrity — which is a choice, not an obligation,” he continued.

“The challenges faced in retaining employees have grown, but the answer is not to resort to offering increased benefits of better packages. It comes down to honesty, discipline, taking responsibility and demonstrating integrity.”

Alaquil also said that training was a key issue in staff retention and needed to be focused on.

Family business

As the industrial arm of the Saudi Binladen Group, Construction Products Holding Company had faced many of the challenges typically encountered by a family-run business, Alaquil explained.

Established in 2005, the firm started with a workforce of around 3400 and today employs more than 28,000, in line with major project contracts it has won over recent years.

He said it will take time for family-run construction firms, particularly those in Saudi Arabia, to adapt to more modern business practices.

“They will need to change their style of management to accommodate rules and regulations being implemented by international organisations.

“As far as CPC is concerned, we realise that to be successful you must be up to date with the open market.”

The company has demonstrated this through initiatives such as working with local universities to “payback time and money” to the local community, and support and training the country’s youth.

“We have a programme that allows youths from educational institutes to come and see our factories and gain some exposure to the manufacturing industry.

“If they one day wish to start their own business, we’re able to give them a small loan or if they wish to continue working with us, then even better.”

Commenting on Saudi Arabia’s investment in educational facilities, Al Alaquil said Saudi Arabia would soon be a very different place, but he believes CPC will continue to “depend on foreign workers for some time.

XXXXXXXX CAREER LADDER | XXXXXXXXXX | STAFF RETENTION

Becoming an employer of choice

“The job description should not be tied to nationality; we employ staff from Egypt, Lebanon, Syria, Jordan and Palestine, as well as Saudi engineers”

TOP: Alaquil said integrity was a choice not an obligation.

ABOVE: Training construction staff is closely related to retaining them, according to Alaquil.

“The job description should not be tied to nationality; we employ staff from Egypt, Lebanon, Syria, Jordan and Palestine, as well as Saudi Arabia.”

However, to gain enough visas for staff, he revealed that the company was obliged to employ a percentage of Saudi nationals in line with the country’s Saudisation initiative.

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Project Number MPP2396-LE

Project Name Sama Beirut Tower Project

Territory Lebanon Client Antonios Projects (Lebanon) Email : info@sama-beirut.com Web: http://www.primeconsult.net Description Construction of 50-storey, 200-metre-high Sama Beirut Tower comprising seven floors of offices and 40 residential floors, which will contain 71 apartments, including seven basements dedicated to parking facilities for more than 700 cars.

Budget $ 200 million Period 2014 Remarks This project will be located in the Sodeco area of Beirut, near to the airport and downtown Beirut and is set to become the tallest tower. The building will be leadership in energy and environment design (LEED) certified.

The tower will also contain a 1000m² private health club and swimming pool. It is understood that excavation and shoring works are ongoing and will be completed in the second quarter of 2011.

Evaluation of bids is currently underway for the main construction contract. An award is expected in December 2010, with construction anticipated to commence in the first quarter of 2011.

Main Consultant Prime Consult (Lebanon) Main Architect Elie Saab (Lebanon) Project Manager D G Jones & Partners Middle East (Lebanon) Main Architect-1Erga Group Architects & Consulting Engineers (Lebanon) Foundations, and Enabling and Piling Contractor Profond Liban Sal (Lebanon)

Project Number OPR416-U

Project Name Petroleum Storage Terminal Project Phase One

Territory Northern Emirates Client Gulf Petrochem FZC (Sharjah) Email: mail@gulfpetrochem.com Web: http://www.gulfpetrochem. com Description Engineering, procurement and construction (EPC) contract to build a major petroleum storage terminal with capacity of over one million m³.

Budget $ 100 million Period 2012 Remarks This project will be located in close proximity to the Port of Fujairah. The facility will feature dock pipeline connectivity to the Port of Fujairah, a pigging system for all dock pipelines, operational flexibility to handle Class A, B, C products in all tanks, a road tanker unloading and loading facility. The terminal will be built to NFPA standards, including all support systems such as OWS, ETP and compressor station. Local Topaz Engineering’s fabrication and construction unit, through its subsidiary Nico International Hydrospace, has been appointed as the EPC contractor. Construction works have commenced on this development. The contract is worth $45 million. The facility is expected to take 17 months to complete.

UK’s Mott MacDonald has been appointed as project management consultant (PMC). The contract covers conceptual design, cost consultancy and feasibility analysis.

Mott MacDonald will also provide engineering services, tendering and

construction management. The project is expected to be completed in the second quarter of 2012.

Project Manager Mott MacDonald Ltd. (Dubai) Main Contractor Nico International (Dubai)

Libya

News

Lebanon

Overseas (Abu Dhabi) Project Manager RW Armstrong (Libya)

Saudi Arabia

Project Number MPP2351-LI

Project Name Al-Waha Mixeduse Development Project

Project Number MPP2347-SA

Territory Libya Client Al Maabar International Investments (Abu Dhabi) Description Development of AlWaha mixed-use scheme comprising residential, commercial and hospitality towers, a hotel, serviced apartments, a shopping mall, supermarkets, a cinema, including a health club.

Territory Saudi Arabia Client Al-Reziza Group (Saudi Arabia) Web: http://www.reziza.com Description Construction of 28-storey commercial tower in AlKhobar.

Budget $ 750 million Period 2012 Remarks This project is in Tripoli.

The scheme is being developed in partnership with local real estate company Lidco. Client is preparing to issue tenders the estimated $350 million construction package. The Al-Maabar part of the 135,000m² development includes two 28-storey towers comprising a commercial tower and a hospitality tower, with a 203-room hotel and 102 serviced apartments. Al-Maabar is also building a health club, shopping mall, supermarkets and a cinema.

Lidco’s portion of the development includes 11 residential towers and a three-storey mall. It is understood that the main construction contract is expected to be awarded in first quarter of 2011.

Main Architect Atkins & Partners

XXXXXXXX MENA PROJECTS | XXXXXXXXXX | TENDERS

TENDERS

The latest tenders and project updates for developments in MENA

Project Name Al-Khobar Tower Project

Budget $ 100 million Period 2013 Remarks This tower will be located in the Eastern Province of Saudi Arabia and cover a site area of 2000m², overlooking the Dammam / Al-Khobar highway. Invitations to bid (ITB) for the main construction contract are due to be issued in the final quarter of 2010. Deadline for submission of bids will be in February 2011, with a contract award due in April 2011. The project is scheduled for completion in final quarter of 2013. UAE-based Dewan Architects & Engineers was awarded the contract to design and supervise construction of this tower in January 2010 and has since completed two rounds of designs for the client.

Main Consultant Dewan Architects & Engineers (Saudi Arabia) Design Consultant Dewan Architects & Engineers (Saudi Arabia) Project Number MPP2361-SA

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MENA PROJECTS | TENDERS

Project Name Burj Rafal Mixed-use Project Territory Saudi Arabia Client R afal Real Estate Development Company Ltd. (Saudi Arabia) Email: info@rafal.com.sa Web: http://www.rafal.com.sa Description Development of Burj Rafal mixed-use scheme comprising a 62-storey tower consisting of 260 luxury apartments on 23 floors; a 2000-person-capacity ballroom and 24 meeting rooms on one floors; a 297-room Kempinski Hotel and 54 serviced apartments over 17 floors; office space, which will occupy 13 floors; two wellness spas on one floor; and 4000m² of retail space on the building’s podium.

Tower Project Territory Qatar Client Qatar General Insurance & Reinsurance Company S.A.Q Email: qgirc-tec@qatar.net.qa Web: http://www.qgirco.com Description Design and construction of a 50-storey office tower, including a six-storey building shaped in a sphere, to house an auditorium and business centre and a low-rise building for a convention centre.

Budget $ 275 million

Budget $ 800 million Period 2012 Remarks This project will be developed on a site of 22,000m² in the northern Assahafa district of Riyadh. UAE-based Dubai Contracting Company (DCC) has been awarded the main contract to carry out this scheme. Hong Kong’s P&T Architects & Engineers designed the project and is serving as its mechanical, electrical and plumbing (MEP) consultant and structural engineer. Australia’s Windtech is the wind engineer on the supertall tower and UK’s Rider Levett Bucknall (RLB) is its construction consultant. Dubai’s International Project Management is overseeing the scheme.

Main Consultant Rider Levett Bucknall Consultants (Saudi Arabia) MEP Consultant Palmer & Turner Architects & Engineers Limited (Hong Kong) Design Consultant Palmer & Turner Architects & Engineers Limited (Hong Kong) Project Manager International Projects Management (Dubai) Wind Surveyor Windtech (Dubai) Main Contractor Dubai Contracting Company L.L.C. (Dubai)

Qatar

Period 15/06/2012 Remarks This tower will be located close to the Doha Convention Centre & Tower (DCCT) project on Doha Corniche in Qatar and cover a total built-up area of 140,000m². UAE’s Arabtec Construction has been appointed as the main contractor.

It is understood that construction works have commenced on this development. The project is expected to be completed in summer of 2012.

Main Consultant Architectural & Engineering Consultants - ARTEC (Dubai) Project Manager Projacs International (Qatar) Main Contractor Arabtec Construction W.L.L (Qatar)

Period 2014 Remarks This project is at Ras Laffan Industrial City in Qatar. The gas will be compressed and transported to LNG trains to be processed and re-used as fuel gas. The scheme will recover about 600,000 ton per year of LNG. US’ Fluor Corporation has been appointed as the EPCM contractor. Engineering and procurement will be carried out in Fluor’s office at Sugar Land in Texas, USA. Construction works of the facility have commenced. The project is expected to be completed in first quarter of 2014.

FEED Consultant Fluor Mideast Company Limited (Abu Dhabi) Main Contractor Fluor Mideast Company Ltd. (Abu Dhabi)

Iran Project Number SPR2414-IR

Project Name Assaluyeh Methanol Plant Project

Territory Iran Client National Petrochemical Company - NPC (Iran) Email: webmaster@nipc.net Web: http://www.nipc.net Description Engineering, procurement and construction (EPC) contract to build a methanol plant at Assaluyeh with capacity of 1.6 million tons a year.

Budget $ 400 million

Project Number ZPR008-Q

Project Name Jetty Boil-Off Gas Recovery Project

Territory Qatar Client Qatar Liquefied Gas Compa (Qatargas) Web: http://www.qatargas.com.qa Description Engineering, procurement and construction management (EPCM) contract for collecting the boil-off Liquefied Natural Gas (LNG) from LNG carriers and transferring the gas to a central compression facility via large diameter stainless steel pipelines.

Project Number MPP1845-Q

Project Name World Trade Centre

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Budget $ 1 billion

Period 2013 Remarks This project will be located at the Assaluyeh Pars Special Economic Zone in Iran. It is being implemented by Marjan Petrochemical Company, a subsidiary of the client. The plant’s output is earmarked for export markets. A technology deal has been signed with Denmark’s Haldor Topsoe for the facility, which will use natural gas as feedstock. The deal involves licensing of technology, engineering design, catalysts and technical support services. Deadline for submission of commercial bids for the EPC contract has been extended from the previous deadline of September 23, 2010. No new deadline has been set.

Syria Project Number ZPR171-SY

Project Name Deir-Ezzor Power Plant Project

Territory Syria Client Public Establishment for Electricity Generation & Transmission - PEEGT (Syria) DescriptionEngineering, procurement and construction (EPC) contract to build a gas-powered electricity generating plant with capacity of 750 megawatts (MW) at Deir-Ezzor.

Budget $ 975 million Period 2011 Status Current Project Remarks This project will be located in the northeastern province of Syria. Ansaldo Energia, a unit of Italy’s Finmecannica; and Greece’s Metka, part of Mytilineos Holdings has been appointed as the EPC contractors. Around 80% of the project is to be financed by loans from European Investment Bank, the Islamic Development Bank and Arab development funds, with the balance covered by the Syrian government.

The plant is scheduled to go online in 2011.

Main Contractor Ansaldo Energia (Italy) Main Contractor(1) Metka (Greece)

Bahrain Project Number SPR1464-B

Project Name Airplane Stands Project - Bahrain International Airport Expansion

Territory Bahrain Client Ministry of Works & Housing (Bahrain) Email: info@works.gov.bh Web: http://www.mwh.gov.bh

Budget $ 70 million Period 15/03/2011 Remarks This project is in Manama and will form a part of Bahrain International Airport expansion.

Locally-based Haji Hassan Group has been appointed as the main contractor. Construction work is 87% complete. Project completion has been delayed to March 2011. Bahrain-based Dar al-Handasah (Shair & Partners) has won a contract to provide project management consultancy (PMC) services on this scheme.

Main Consultant GIBB Ltd. (Bahrain) Project Manager Dar Al Handasah (Shair & Partners) - Bahrain Master Plan Consultant Skidmore, Owings & Merrill LLP (USA) Main Contractor Haji Hassan Group (Bahrain)

UAE Project Number OPR439-U

Project Name Billionaires Square Development Project

Territory Dubai Client Pragma Group International (Dubai) Web: http://www.pragma-group. com Description Development of Billionaire’s Square comprising a 45-suite boutique hotel, as well as a Billionaire Bar and Grill, alongside other restaurants, bars and a fitness club.

Budget $ 150 million Period 15/12/2011 Remarks This project will be

developed on the current site of the Palladium entertainment venue in Dubai Media City. The boutique hotel will be run by a famous brand, although that deal is yet to be finalised. It will target the mid to upper segment of the market.

Lebanon’s MZ Architects has been appointed as the lead architect.

The client is currently in the process of appointing a main contractor.

Construction is expected to commence in mid-December 2010.

Main Architect MZ Architects (Abu Dhabi) Project Number SPR2155-U

Project Name Burjside Boulevard Tower Project

Territory Dubai Client Email: info@damacgroup.com Web: http://www.damacproperties. com Description Design and construction of 190-metre-high, 49-storey Burjside Boulevard Tower comprising serviced apartments, with an entire floor dedicated to leisure, including a temperaturecontrolled swimming pool, a fine-cuisine restaurant and lounge overlooking the pool.

Budget $ 75 million Remarks This project will be located directly opposite the Dubai Mall, offering guests and residents alike breathtaking views of the Dubai Fountain and Burj Khalifa. There will be a choice of one, two and three-bedroom apartments, all with their own internal gourmet kitchens, complete with European stainless steel appliances. Local Sun Engineering & Contracting Company has been appointed as the main contractor. Construction work has reached the first podium.

Main Consultant Al Waha Engineering Consultants (Dubai)

Main Architect Architectural Consulting Group - ACG (Abu Dhabi) Design Consultant Koschany & Zimmer Middle East (Dubai) Financial Consultant Abu Dhabi Commercial Bank (ADCB) Main Contractor Sun Engineering & Contracting Company L.L.C (Dubai) Foundations, Enabling & Piling Contractor ; Stromek Emirates Foundations L.L.C (Dubai) Project Number SPR1475-U

Project Name Capital Gate Tower Project - Abu Dhabi National Exhibition Centre Expansion

Territory Abu Dhabi Client Abu Dhabi National Exhibitions Company (ADNEC) Email: adnec@emirates.net.ae Web: http://www.adnec.ae Description Design and construction of 35-storey, 160m-high Capital Gate Tower, with an 18-degree lean comprising a luxury hotel consisting of 200 rooms, including 20,000 square metres of office and retail space.

Budget $ 264 million Period 30/12/2010 Remarks This project will form a part of the Abu Dhabi National Exhibition Centre expansion. The tower’s floor plates will be stacked vertically up to the 12th storey, after which they would stagger over each other by between 300mm to 1400mm giving rise to the tower’s dramatic lean. The scheme will also house the five-star Hyatt Capital Gate Hotel as well as approximately 20,000m² of premium office space.

Dubai-based Gulf Leighton has been awarded the main contract to carry out this scheme. Abu Dhabi-based RMJM is acting as the design consultant. The hotel is set to open in early 2011. It is understood that this tower features innovative techniques, including the world’s first known use of a ‘pre-cambered’ core, which contains more than 15,000m³ of concrete reinforced

with 10,000 tonnes of steel. The core, deliberately built slightly off centre, has straightened as the building has risen, compressing the concrete and giving it strength, and moving into (vertical) position as the weight of the floors has been added.

Design Consultant RMJM (Dubai) Project Manager Mace International Ltd. (Abu Dhabi) Interior Design Consultant RPW Consulting Engineers (Dubai) Main Contractor Leighton International FZ L.L.C (Dubai) Project Number OPR433-U

Project Name Microchip Factory Project

Territory Abu Dhabi Client Advanced Technology Investment Company (Abu Dhabi) Email: aticinfo@atic.ae Web: http://www. advancedtechnologyic.com Description Construction of a stateof-the-art microchip factory.

Budget $ 7 billion Period 2015 Remarks This project will be located on a three km² site next to Abu Dhabi International Airport. On completion, it would be the first chip manufacturing facility in the UAE. The new plant would be a 12-inch wafer fabrication facility and will ramp up its production between 2014 and 2015. The facility will be owned and operated by the client’s subsidiary Globalfoundries.

Project Number SPR2649-U

Project Name Al Ain Rail Network Project

Territory Al Ain Client Department of Transport (Abu Dhabi) Email: tenders@dot.abudhabi.ae

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MENA PROJECTS | TENDERS

Description Engineering and construction of 17 new remote aircraft parking bays, installation of automatic baggage screening facilities, improved ground handling and overall new passenger handling standards.

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DIARY International Concrete Canada Canada: December 1-3

Global trends

$985b The value of the projects planned or underway in the emirates

A significant event for concrete and masonry construction professionals, delivering products, resources and educational tools needed to strengthen operations across the board.

Homebuilder & Renovator Expo Canada: December 1-3 This is a premier trade show for companies selling and marketing to residential builders, professional renovators, contractors,

$624b The value of projects planned or underway in Saudi Arabia

specifiers, designers and architects.

Construct Canada Canada: December 1-3

The value of projects planned or underway in Qatar

65% The increase in government project awards in 2010 in Saudi Arabia

Russia: December 8-10 The main purpose of this exhibition is to demonstrate the technologies allowing the rational use of water, heating and energy consumption in living and industrial buildings to demonstrate modern building materials and technologies used for reconstruction of residential constructions and installations.

Construction Machinery & Materials Expo India: December 9-12 The show features construction machinery and materials, endeavouring to set standards in terms

Construct Canada is an annual exposition of

of footfall numbers, as well as enquiries, deal

products, services, technologies and systems

generation and a sourcing point for construction.

used for the design, construction, retrofit and

$221b

GKH

renovation of all forms of buildings.

SIMI France: December 1-3 This Paris-based show brings together professionals and users of real estate in France, covering offices, buildings and warehouses.

Hospital Infrastructure India India: December 7-9 This is an international exhibition on hospital

ET Acetech India: December 17-19 The exhibition is one of India’s largest architecture, construction, engineering and building materials events, providing exhibitors with a focused and relevant visitor mix of prospective buyers and opinion leaders.

Don’t miss: Arabian Construction Week 2011 March 28-30, ADNEC

infrastructure, planning, supplies and the

zz

More than 500 exhibiting companies

healthcare development sector. The event will be

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Thousands of products showcased

zz

10,000 trade visitors

zz

20,000m2 of exhibition space

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Four global summits with 800 Delegates

a platform where investors, planners, builders, contractors, architects and designers can convene.

www.thebigprojectme.com | 61

DIARY | INDUSTRY EVENTS

December

TEA BREAK | INDUSTRY COMMENT

“We’ve seen some interesting firms from China, Tokyo and Vietnam. We can hopefully contact those guys after the show and try to do some sort of business with them” VISITOR

Bader Al Mahroon

Project manager, Sint Overseas Company, Oman I’ve come from Oman. We are a construction company so we’re here to see if there are any new systems, materials, equipment and machinery. We’ve seen some interesting firms from China, Tokyo and Vietnam. We can hopefully contact those guys after the show and try to do some sort of business with them. It’s my first time at The Big 5, but we will be returning.

We’re construction a number of residential buildings in Oman.

VISITOR

Ali Diab

Your Shout Visitors to The Big 5 2010 reveal some of their favourites finds at the construction exhibition EXHIBITOR

VISITOR

Project manager, Ewan Consultancy and Engineering, Abu Dhabi It’s still early days but I’m here to find materials that I can use in my designs. I’ve found three or four items which are being exhibited for the first year here. These are mostly European products, Italian and German specifically.

There is a very obvious trend for sustainable design emerging in the region and a few new items that have only just entered the market are being exhibited, which we will probably adopt — such as solar cells and insulation panels.

Procurement manager, Jordan I’m here to find some new and innovative air-conditioning solutions so I’ve come from Jordan and arranged some meetings with potential suppliers here. I have attended every year for four years, there are many new companies here this year and some interesting products, but there isn’t a fantastic range of new products at The Big 5 as this isn’t the biggest HVAC show in the region, there are bigger shows in the USA, Germany and in Beijing but it’s essential for us to attend The Big 5 to maintain relations with existing clients.

Ehsan Al Barrak

HVAC

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VISITOR

Imran Hussein

Business development manager, RAK CA Business Services, RAK Investment Authority, Dubai I’m a consultant working for a government organisation to look at the stands and see how the traffic is.

We’re helping companies to develop their business in the UAE so there are a lot of companies who have offices in the UAE and we’re helping them expand in specific markets. There has been a very good response. I’ve been participating for the last five years.

There are a lot of good networking opportunities as people have travelled to the region from all over the world to come to the show, where as exhibitions in Europe tend to be limited in terms of audience. Also, the traffic to the stands has been very good and is very similar to previous years.

General manager and architect, from Ghimar Enterprises, Oman We’ve come from Oman because we have a design office and I’m here with a client investor who is building a hotel, so we’re trying to find materials. It’s a four-star property in Northern Oman with 80 rooms. It’s under construction. We come every year and this year by chance we met the Sheikh. There is something new every year, which is the main reason we attend. We particularly like the design exhibits from Italy, they are very nice; very artistic.

VISITOR

Harb Shlash

Commercial manager, Suma International General Trading Co, Kuwait I’ve come from Kuwait. I’m in the building materials industry and I’m looking for new, high-tech products.

We’re an international company.

There is a very good offering at the show and we’ve found a lot of products that are of interest. However, we’re going to come back tomorrow and the day after, it’s a big fair and it takes time to choose before purchasing. You have to search very carefully before making a decision. There are some new technologies, but we’ll be better positioned to judge with buying in mind tomorrow, better than today. We come here every year.

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