FEBRUARY 2011
PLUS AIA Middle East launch Sealants and adhesives abu dhabi school projects
Bahrain business opportunities
ARCHITECTURE n ENGINEERING n CONSTRUCTION n PMV PUBLICATION LICENSED BY IMPZ
Train to gain How Alec Construction’s new site training initiative has boosted profits and productivity on its Saadiyat Island projects
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FEBRUARY
Contents REGULARS Editor’s letter 4
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News bulletin 7 Comment 13 Construction expert Ted Garrison says it is time for contractors to pitch value rather than price
News in focus 17 Dubai’s real estate standards debated by panel, including RERA CEO Marwan Bin Ghulaita
Event insider 19
32 39
Cityscape Abu Dhabi group director Chris Speller says transparency, project delivery and sustainability will be key themes at this year’s show
Supplier hotseat 42 Saint-Gobain MD Craig Chambers reveals the firm’s strategy to develop dry-lining solutions and expand
Supplier spotlight 44 A round-up of the latest news and announcements from industry suppliers in the Middle East
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Tenders 53 Diary 57
FEATURES 22 Talk The Big Project catches up with president of the American Institute of Architects Middle East Thierry Paret, ahead of its launch
26 Train to gain How Alec Construction’s training programme has boosted productivity, profits and job satisfaction across the firm’s Saadiyat Island projects
32 Market explorer Driven by its strong financial sector, Bahrain is bouncing back from a difficult three years
37 Tried and tested Italian contractor Ghizzoni S.p.A puts Volvo’s new pipelayers to the test, here’s the verdict
39 Iconic structures Sammon Group construction director Austin Duffy reveals how the firm is meeting ADEC’s vision to deliver schools rated three Pearls on the Estidama system
47 Trends The region’s adhesives industry is poised for growth, say the experts
Tea break 58
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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 Director business development Alex Bendiouis alex@cpidubai.com TEL: +971 (0)4 440 9154 GSM: +971 (0)50 458 9204
Back to school
T
his month’s cover story is quite an inspirational one. While many firms cut back on training during the global economic downturn, Alec Constuction invested in it and, in turn, has reaped the rewards. “We were exceeding our cost-base liable by massive margins and when we really got down to the nitty gritty, we realised labour was causing the problem. We overspent by millions of dirhams,” the contractor told The Big Project. Alec Construction is certainly not the only company that has stepped back and reviewed its workforce over recent months. But some have taken the route of mass redundancy and pay or bonus freezes; an action Innovative Human Resource Solutions CEO Nanette Fairley
Business development manager Rhiannon Downie rhiannon@cpidubai.com TEL: +971 (0)4 440 9152 GSM: +971 (0)50 554 0116
warns can have negative consequences for a firm. “During a downturn, it’s more important than ever that contractors focus on retaining their best staff. Many mistakenly think employees should feel lucky to have a job, but the reality is - talented individuals are easily employable elsewhere, whatever the market situation.” Training is not only an easy way to gain increased productivity from the workforce and reduce cost-base allowance, but will also help companies retain talent through increased job satisfaction. On page 26, we pay a visit to one of Alec Construction’s Saadiyat Island project sites, where its ‘training in the workforce’ initiative is being implemented.
Business development manager Nayab Rafiq nayab@cpidubai.com TEL: +971 (0)4 440 9153 GSM: +971 (0)55 542 6032 Senior sales manager Tariq Meer tariq@cpidubai.com TEL: +971 (0)4 440 9150 GSM: +971 (0)50 458 9044 Senior sales manager Scott Woodall scottwoodall@cpidubai.com TEL: +971 (0)4 440 9144 GSM: +971 (0)50 557 3677 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 Photographers Helen Riley
Louise Birchall Editor
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)4 447 2409 Web: www.thebigprojectme.com
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© Copyright 2011 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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Dubai to deport striking Arabtec workers Fifty Bangladeshi workers to be deported, according to country’s consul general The workers were rounded up by police after they were identified as ring leaders in a two-week strike over pay rises, according to local media reports. It is estimated that 5000 workers employed by Arabtec first went on strike on 16 January to demand wage increases of AED 200 (US $55) from their average salaries of AED 800-1000 (depending on skill level). The Bangladesh consul general Mohammed Abu Zafar said the worker protests had been a peaceful but, with striking illegal in the UAE, the police had broken up the strike. “Intelligence people identified them and are being deported to Bangladesh,” he told media. The strike coincided with the visit of Bangladesh’s Prime Minister Sheikh Hasina Wazed to the UAE last week who was scheduled to talk about the employment rights of Bangladesh workers operating in the country. “There are many good things to talk about,” said one of her advisors. “But there are some difficulties in some areas, including recruitment process and payment issues. We are hoping that together, we can improve the situation. We have a lot of labourers here, and we are always in touch with the UAE authorities regarding their problems, but the issue is that they are primarily hired by the private companies. “We have a committee to discuss this. She will talk to the Government to create a legal framework for issues such as transportation and compensation of pay.” Taking the lead from his country’s leader, Abu Zafar said that the Bangladesh government could introduce a minimum wage for all its citizens in the UAE, and that it could in future demand the level was met before allowing its nationals to work for companies in the UAE, according to reports.
Developer Nakheel defended statements last month that The World Islands were sinking.
Infrastructure growth continues in KSA Expansion of Saudi Arabia’s transport sector progresses The focus on infrastructure development in Saudi Arabia is driving a near 10% annual growth in the transport sector. Estimates place the growth between 6-10% due to the volume of new roads, railways and integrated community development projects. The number of religious pilgrims visiting the country has also aided the growth; the new metro line in Mecca was partly operational for Eid Ul-Adha in November 2010. Last year, the Kingdom’s transport budget included 6400km of new roads, with additional multi-billion dollar projects also planned under the
Jeddah Strategic Development plan, the Riyadh Light Railway and King Abdulla Economic City.
Korean firm awarded Sipchem contract
acetate and butyl acetate, will be built by Korean firm eTec Engineering and Construction and wholly owned by Sipchem. Technology will be supplied by French firm KSA engineering, design and Rhodia, according to a deal finalised in August of last year. construction projects to be Chemicals produced at the facility will be used delivered Q2, 2013 for industrial solvents, inks and granules for surface coatings, according to the firm. The plant will provide enough EA and BA to The Saudi International Petrochemicals Company (Sipchem) has awarded a contract to build its new meet both domestic and international needs. The expansion is part of Sipchem’s growth in Ethyl Acetate Plant in Jubail Industrial City, based in Saudi Arabia. The new facility, with a planned downstream products in full integration with its current products portfolio. annual capacity of 100,000 metric tons of ethyl
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NEWS | REGIONAL
NEWS BULLETIN
NEWS | REGIONAL MacDonald and Co’s Ben Waddilove.
Architecture firm calls for end to “goofy” designs in emirate Dubai’s project designs must be readdressed with the tenant in mind, says Woods Bagot Designers and contractors in Dubai must build to market requirements, rather than attempting to create a demand for “iconic” architecture, if the emirate’s real estate market is to be restored. The comments were made by head of the Woods Bagot global lifestyle division director, Mark Mitcheson-Low, in an interview with The Big Project. His observations were based on research undertaken by the company on the topic of global demand trends for commercial and office buildings. “I think the days of goofy architecture, where you just design something from the outside and its function follows form, are totally inefficient. People [here] design a crazy-looking building and then see whatever functions they can pack within it, which is very ego driven.” The research also concluded that shifting priorities has given more power to tenants than ever before. “It’s a different approach from clients who used to work on the basis of ‘if you build it they will come’,” said Mitcheson-Low, who established Woods Bagot’s Middle East studio in Dubai in 1997, when the company worked on the Jumeirah Emirates Towers project. Commenting that the market is now moving in a way that contradicts the “speculative” construction and design of the past, he added: “It’s not surprising, it’s just a sign of the new era; the tenant is key, whereas before it was the landlord. “You have to build for the market and the type of tenant. Tenants have more choice now; they could look at 100 buildings in Dubai but if there is one big tenant in town and they have needs you are able to meet, they will select that building over an inefficiently designed alternative,” he added.
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Saudi bin Laden group begin work on Jeddah airport Construction begins on Jeddah’s US $7.2b airport terminal Authorities in Saudi Arabia have announced the start of construction on a new terminal at Jeddah’s King Abdul Aziz Airport. The $7.2 billion project will be delivered by the Saudi Bin Laden Group, which was awarded the contract in November 2010. The contract includes work to build a single 670,000m² terminal, with 94 aircraft bays and “the world’s tallest airport control tower”, which will stand at 133m.
Dubai infrastructure receives $2b boost Rulers of emirate unveil 2011 spending plan Infrastructure projects in Dubai will receive “a significant” proportion of funding in the emirate’s recently announced 2011 budget. The allocation will see investment of UAE 7.5 billion (US two billion) in further development of pre-approved projects; a 23% total budget share. The projects, designed to stimulate “economic growth and financial stability” will also
Supporting infrastructure includes roads to link the terminals and the pre-planned highspeed railway, between Mecca and Medina. The upgrades will allow the airport to process up to 20 million passengers and are expected to take 36 months to complete. The cornerstone was laid by the Crown Prince Sultan bin Abdul Aziz during a ceremony, which was held at the site in Saudi Arabia, last month. “stimulate the flow of local and foreign investments” according to a statement released by the municipality. No new projects were mentioned. A further 43% will be invested in the economic sector which also includes roads and transport developments, airports and civil aviation, according to His Highness Sheikh Mohammed bin Rashid Al Maktoum and Abdulrahman Al-Saleh, the director general of the Department of Finance. The remainder of the budget will be shared between social development (24%); the general services and government excellence sector (11%) and security, safety and justice (22%) sectors in the emirate.
Authorities investigate fatal accident on Princess Noura bint Abdul Rahman University site Saudi Arabian Authorities are investigating the deaths of three construction workers following the collapse of a section of scaffolding on the Princess Noura bint Abdul Rahman University worksite, east of Riyadh.
Mott MacDonald wins Pearl Dubai contract Engineering company expected to deliver phase one by quarter four, 2013 International management and engineering firm Mott MacDonald has been awarded a significant contract to deliver design, engineering and consultancy services for all mechanical, electrical, public health, fire, communications and security systems at the $6 billion Pearl Dubai development. Mott MacDonald was appointed by Pearl Dubai FZ LLC. The company is led by Abu Dhabi’s Al Fahim Group. The project will be delivered in two phases; Mott MacDonald has been appointed to deliver phase one with initial handover
A further 11 were injured in the incident, which happened last month. Work at the construction site was stopped until investigations were completed, First Lt. Muhammad Al-Hubail, deputy spokesman for the Civil Defense in the Riyadh province, told journalists from local newspaper Arab News. “We are now trying to find out the reasons for the collapse of the scaffolding at the Princess Noura bint Abdul Rahman University construction site, causing deaths and injuries,” he told the paper, but refused to speculate on the cause of the collapse.
scheduled for quarter four, 2013. Upon completion, the 1.86 million m² Pearl Dubai will house 9000 residents, offices, hotels, shopping and entertainment facilities; it is expected to employ a 12,000-strong workforce and will be “the only walk-able environment in the amirate”, according to the developer. Located on the outskirts of Dubai’s Media City and Technology Freezone, the area will be centred on four, 70-storey towers. Mott MacDonald project director Lars Caneborg said, “Pearl Dubai’s guiding philosophy is to re-draw the global blueprint for the future of multi-faceted mixed-use developments. “Comfort, convenience and community are the watchwords for the Dubai Pearl development and these are the foundations on which this new city will be built,” he added. The company will also provide a sustainability consultancy role, coordinating all internal and external consultants towards LEED Gold accreditation throughout the construction.
KSA supplier to extend employment opportunities to female and disabled workers A specialist training school has been established to encourage the recruitment of more young, female and disabled workers in Saudi Arabia’s industrial employment market. Reports in the Saudi Gazette quoted Saudi Steel and Pipe Company (SSPC) CEO Mohamed Zakaria as saying that the training will also address Saudisation quotas to employ more nationals in the local workforce. The company has already written to the Labour office and requested support from the Jeddah Chamber of Commerce and Industry (JCCI). Of the company’s current workforce, 10% are Saudi Arabian national; Zakaria says that the intention is to increase this to 100%, despite Saudi workers costing twice as much. Training will see the majority of females in administrative or support roles, students will also learn English. “We respect women and welcome them to the workforce. We want them to progress and compete with men. A few years ago we could not imagine that women could work in the industrial field,” commented Zakaria. “The Kingdom is changing; Saudi women can work in the sector, particularly in office management, reception and accounts. There are also plans to hire people with disabilities.” He said the Bugshan family, the owners of the steel company, believed it was their duty as a Saudi company to contribute to the development of the country and the employment of nationals.
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XXXXXXXX NEWS | REGIONAL | XXXXXXXXXX
Three die in KSA scaffolding collapse
Saudisation driving steel company’s recruitment
NEWS | REGIONAL
Number cruncher Estimated construction industry growth in Qatar
The projects include a number of marine stations and multi-storey car parks.
Dubai transport authority outlines public-private partnership ambition
Qatar project market breakdown by sector
RTA to seek greater share of private investment in projects The Dubai Roads & Transport Authority (RTA), the body responsible for the emirate’s entire transport network, is to seek private investment in 30% of projects. The funding will mean many infrastructure developments planned for the next five years will now be tendered on a public-private partnership (PPP) basis, according to senior representatives from the authority. The projects include a number of marine stations, up to 10 multi-storey car parks, to be tendered later this year and possible privatisation
of the water-taxi services. “For the public sector, this means new funds are available to develop infrastructure and the private sector is usually more efficient in terms of management and maintaining assets. There is also more flexibility and room for innovation,” CEO for strategy and corporate governance Abdul Younes told local media. The reports also state the Sheikh Rashid Bridge and Dubai Smile, designed to replace the existing floating bridge, will be tendered as PPP “after 2014”.
Bahrain cement price expected to soar Contractors fear cement price hike, despite ministry intervention Contractors in Bahrain still fear expected increases in the price of cement despite government intervention to prevent a 30% hike planned by manufacturers. The “collusion” between the Bahraini companies was labelled a “monopoly”, which “should not be tolerated”, by Dr Essam Fakhro, from the Bahrain Chamber of Commerce and Industry (BCCI). His comments followed a closed meeting with the Commerce and Industry minister, in which the price hikes were overruled. Yet Robbie Ferguson, CEO at Bahrain based Karimeh Construction said demand in Saudi
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Dr Essam Fakhro of the Bahrain Chamber of Commerce.
Arabia could drive further increases as soon as this year. “I still believe we will see price increases as the year moves on and some of the new large projects come online during the second and third quarters,” he predicted. “The Saudi Arabian market controls the cement and reinforcing steel industries here and if relations remain strong, unlike in 2008, it
should be clear sailing. However, the demand as multi-billion dollar projects are undertaken could still bring increases.” The price of a 50kg bag of cement increased by 33% to BC 1.600, with resistant cement rising 32% to BS 1.650. Bulk ordinary cement rose 30% to BC30 per ton and bulk resistant cement by 32% to BD31 per ton. There was also speculation the rise would prevent a price war between local factories and cement companies. Dr Hassam was quoted in regional media likening the cement companies to a “cartel”. The Ministry was called in to prevent the move and help contractors. A statement from BCCI continued that the move was “inconsistent with the fundamentals of the free market” and that raising prices of cement could lead to similar rises in the costs of other materials, “strongly affecting the competitiveness of the Bahraini market”. “The sharp increase in the price of cement all of a sudden, is not justified by any objective or logical reasons,” BCCI added.
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COMMENT | TED GARRISON
Convincing clients to recognise value over price can be tricky.
Get out of the building business US-based industry expert Ted Garrison says it’s time for contractors to give up the business of construction or get savvy, by competing on value rather than price
T Construction expert Ted Garrison.
“The low-bid process doesn’t even guarantee that construction costs will be lowest after change orders, delays and quality problems are resolved and litigation costs are applied”
elling contractors to get out of the building business may appear to be a brash statement, but on careful review, the idea is sound. However, the statement isn’t about telling contractors to stop building. It’s about getting them to focus on a more important goal, namely solving client problems that involve construction services as part of the solution. You may have heard the comment that when someone buys a drill, he is really buying a hole. For years many contractors purchased coreboring equipment, but they found that was a very costly and inefficient way to drill a hole in concrete as inexperienced workers often tore up the expensive bits because they did not know what they were doing. In contrast, today, most contractors hire a specialist to core drill their holes because they have learned it’s more cost effective. This idea is not an American idea, nor is it a European-, Australian-, Asian- or a Middle Eastern idea; but rather it is an idea that has worldwide application. Khaled Musaed el-Seif, the chairman of El-Seif Construction and Engineering and one
of the most highly-regarded individuals in the construction industry in the Middle East, reported on the changing construction industry in an interview as the chairman of the committee on business development for the Riyadh Chamber of Commerce. “But it is not standard construction. These opportunities are not construction contracts. This is very sophisticated work that includes the construction and development of highly-complex projects. So construction companies will have to change for these opportunities. These projects require developers, contractors and financial institutions to get together to form project companies,” he said.
Price pressure
All over the world, the pressure on contractors to reduce their prices is intense. This has reduced profit margins to levels that are insufficient for the risk involved. For example, in 2005 in the midst of the last construction boom, Forbes magazine reported that the ROI for the largest construction market, the US construction industry, was 9.6% as compared to 16.7% for all US industries. While it’s difficult to
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COMMENT | TED GARRISON
construction costs
30% costs are thought to have fallen 30% in uae during crisis
obtain exact Middle East figures, all indications point to similar figures. The industry is truly international, and contractors go where the greatest opportunities exist, so profit margins become level around the world. Despite the fact numerous studies reveal that the low-bid process doesn’t create overall lower project costs, the myth persists. US professor Edwards Deming began his campaign as early as the 1950s to eliminate the awarding of work based on price. He argued that suboptimisation, in our case awarding work to the lowest-priced contractor, while it may reduce costs on the suboptimised task, often leads to higher overall project costs. Worse, the low-bid process doesn’t even guarantee that construction costs will be lowest after change orders, delays and quality problems are resolved and litigation costs are applied. Unfortunately, too many owners have the mistaken belief that all contractors are equal because they are required to follow the plans and specifications. All contractors are not
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equal, and the construction process is too complex to rely on any single entity to prepare and design the best solution. However, the bigger challenge for higherperforming contractors is not the low performer, but the need to differentiate their performance from other high-performing contractors. Regardless of how great their performance, if they can’t differentiate their services; they will still be forced to compete based on price. The reality is that most high-performing contractors are using the latest techniques and technologies and offering a high-quality construction product with similar costs and schedules. The only variable is the profit margin, and if that’s the only variable, then the pressure to reduce it becomes intense.
Outthinking competition
The only sustainable answer is a new strategy, one where the contractor can outthink its competition instead of outmuscling it in a destructive price war. To achieve this, contractors must
think of their businesses in broader terms than the lowest common denominator, namely the building process. Railroad construction declined in the 20th Century because railroad executives thought they were in the railroad business. When the railroad developers accepted the fact they were in the transportation business, their resurgence began. Contractors must learn to think and operate as a problem solver where construction is an integral part of the solution. This approach allows the contractors to offer greater value to the client and avoid competing totally on price. To illustrate how this can work, let’s look at a new factory project. A manufacturer wanted to build a new 100,000ft² factory to replace its existing one. Three contractors were invited to make proposals, but all the estimates came in over budget. Two of the contractors attacked the problem the conventional way; they began value engineering the factory’s construction design. Maybe they could find 5% in savings, and if they found more than their competitors, they might get the job. The third contractor took a different approach and hired a lean-manufacturing expert. The contractor had the lean consultant go through the manufacturer’s existing facility. The lean expert reported that he could improve the manufacturer’s operations and reduce its operating costs, in essence, make it more competitive in its business and do this in only 90,000ft². When the contractor went back to the manufacturer with that information, the selection process became obvious. Not only did the winning contractor substantially reduce the
construction costs by reducing the size of the building, but it improved the manufacturer’s profitability going forward beyond the capital savings. Further, the winning contractor wasn’t forced to squeeze its profit margins because it provided sufficient value for the client. This is a perfect example of a win-win scenario. Author Peter Drucker wrote that there are two skills that every company needs: marketing and innovation. He was not writing about your brochure or your advertising campaign, but your market research. The idea is the contractor that best understands the prospect’s true problem or needs through both research and communication with the prospect has a better opportunity to develop the most innovative solution for
the project. This approach is about competing on value, not price. Contractors must stop attempting to compete by building the cheapest structure. Instead, deliver the structure with the greatest life-time value for the prospect. Integrated project delivery methods produce superior results because they allow all the stakeholders to put their heads together to define the problem then create the best possible solution. It allows for collaboration and innovation, two fundamental principles of superior performance. Many countries are moving toward public-private partnerships to build infrastructure projects because this collaborative approach produces superior results and is what el-Seif described. The construction industry must start asking a significant question
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before starting any project: Why are we doing this project? Obviously the owner’s answer offers the contractor the opportunity to differentiate itself in how it addresses that need. However, the contractor should also ask itself that question because unless it can offer a reason it is the logical choice for the project, it will be forced to compete on price.
PROFILE Ted Garrison is a construction industry expert who writes, speaks and consults on the future of the construction industry. He is also the host of the internet radio programme New Construction Strategies. He can be reached at ted@tedgarrison.com.
COMMENT | TED GARRISON
“Contractors must stop attempting to compete by building the cheapest structure. Instead, deliver the structure with the greatest life-time value for the prospect”
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news in focus | property
Now is the time to invest in Dubai, said RERA CEO.
Real estate laws still require reform Emirate’s real estate standards debated by panel, including RERA CEO Marwan Bin Ghulaita
N
ew regulations aimed at restoring confidence in Dubai’s real estate markets still require reform. Speaking at a discussion panel hosted by Dubai School of Government last month, Ludmila Yamalove, managing partner with real estate lawyer HPL Yamalove & Plewka, said that in order for confidence to be restored, Dubai’s courts must stop overruling federal law in real estate disputes. “From a legal perspective, the federal law is fairly comprehensive and most of the laws we are familiar with in western jurisdictions exist in UAE law. “But the Dubai courts only use Dubai laws and forget or ignore the federal laws and that is where we find things quite frustrating.” The comments were made in response to Real Estate Regulatory Authority (RERA) CEO Marwan Bin Ghulaita, who said new regulations will attract “professionals” to Dubai’s market, establishing the emirate’s reputation as a real estate investment destination Calling the market “the most transparent in the region”, Ghulaita added there was a strong need for professionals, innovation, information, infrastructure and education. “Let me share with you one fact; we are stringent on introducing any company which will come and serve the owners. That is why we are making sure that only professionals, up to our standards, will come to Dubai,” Ghulaita said, pledging to found the reformed industry
Participants at the conference.
on international standards. Three or four years back the regulation was not there; the number one priority for investors in 2006 and 2007 was a huge return. “Today, number one is regulation. People did get hurt in Dubai but they will reinvest in Dubai because this is the right time to; not in
2006. The banks will start lending but we will have every lender in Dubai working by the book, not like before,” Ghulaita added. Furthermore, on the sidelines of the meeting Bin Galaita told reporters that the Real Estate Regulatory Authority was launching a new website for investors to check the status of their project including the technical report and details of homeowners associations. In May 2010, RERA said Dubai’s developers had six months to hand control to home owners associations following the Land Department’s guidelines of the strata law. Once registered the associations would be given control over the maintenance of their units, service levels and costs and control over service fees. “Owners associations [registered with RERA] will now have to manage the service charges. Earlier the developers managed it. Service charges might go up as the owners associations will have to bear all costs,” said Neil.
Also in the news
“The banks will start lending but we will have every lender in Dubai working by the book, not like before”
As many as 150 home owners associations (IOAs) have been registered with the Real Estate Regulatory Agency (RERA), Galaita revealed at the conference. Landmark Group CEO Charles Neil told members at a recent Dubai Property Society that 2000 homeowners associations would have to be formed based on the number of developments.
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XXXXXXXX EVENT INSIDER | XXXXXXXXXX | CITYSCAPE Cityscape Abu Dhabi 2010.
EVENT INSIDER CITYSCAPE ABU DHABI Group director Chris Speller says transparency, project delivery and sustainability will be the key themes at Cityscape Abu Dhabi 2011, taking place from April 17-20. The Big Project finds out more How are preparations going for this year’s event?
It’s a busy time, especially as we’ve just taken over the existing real estate event in Egypt called Next Move, which is held in April every year. We’ll be launching it a week after Cityscape Abu Dhabi, which is our flagship event, so in addition to preparing for Cityscape I’ve been back and forth to Cairo, recently.
Cityscape group director Chris Speller.
“I expect we will see a more international visitor focus. There has been investor interest from abroad, looking at Abu Dhabi as a sovereign wealth fund”
Egypt had a prominent presence at Cityscape Global 2010; will the country be significantly represented at Cityscape Abu Dhabi 2011?
We expect to see a lot of Egyptian companies coming to the event as Abu Dhabi is a pinnacle for the MENA region in terms of how real estate is being developed at a slower rate, giving the market sustainability. The Egyptian market is an exciting one but for an institutional investor, it comes with much concern due to a lack of transparency. It’s in its
first year as an emerging market and is a great place to invest if you’re careful. All investors across the world have learnt lessons in buying off-plan and now want to see where the project is and what stage it is at.
What new participants have been confirmed for this year?
We have got several more of the government entities onboard, such as developer and project manager Musanada, and the Abu Dhabi Authority for Culture & Heritage, which is spearheading a lot of developments for schooling, mosques and Emirati housing.
What are the key themes that will be addressed?
The key focuses for Abu Dhabi this year will be transparency, project completion and delivery, and sustainability. There is also an interest in how Vision 2030 is progressing and what industry laws and regulations are being introduced.
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XXXXXXXX EVENT INSIDER | XXXXXXXXXX | CITYSCAPE
“Abu Dhabi is a market which continues to carry great weight and strength behind it, as well as confidence” Are you expecting to see more international visitors at the event than in 2010?
I expect we will see a more international visitor focus. There has been investor interest from abroad, looking at Abu Dhabi as a sovereign wealth fund. We’ll see people coming from Canada, Australia, the UK, France, China and Korea. I’ve also had enquiries from Russia as there is a lot of growth in that area. Plus, investors aren’t coming here looking to make money; they want to create relationships with developers from the GCC, specifically Abu Dhabi and the UAE.
Last year, Cityscape Dubai was rebranded as Cityscape Global reflecting a slow market; do you plan to rebrand Cityscape Abu Dhabi as an international conference?
Abu Dhabi focuses predominantly on what is happening in the emirate; international visitors targeting people operating in Abu Dhabi. The event in Dubai is a truly international event which doesn’t focus on one target market. Abu Dhabi is a market which continues to carry great weight and strength behind it, as well as confidence.
A product demonstration at last year’s Citybuild.
Will new projects be launched at the event?
There will be new projects announced, some of which we’re waiting for confirmation on, but we cannot reveal these at this stage.
What areas of opportunity will be highlighted at the show?
Retail will be a very strong aspect. There has been a lot of growth within that particular area so it will be interesting to see how the Government of Abu Dhabi will support and drive that sector further. Obviously tourism and three key aspects of Vision 2030 will be prominent: real estate, infrastructure and economic sustainability.
How many visitors are you expecting to attend?
Visitor registration doesn’t normally start this early, though we have communicated with previous visitors and participants. We’re not looking at a massive growth in terms of numbers compared to last year, but we do hope to sustain the level of visitors and participants.
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Is this the same for the Citybuild component of the show?
This year’s Citybuild will see a 200% growth. We’ve partnered with the Malaysia Trade and Development Corporation (Martrade), which is hosting its show alongside the event
What is the general attitude of show participants to market conditions in 2011?
Many have faced difficulties — the global economic downturn has affected everybody, but Abu Dhabi hasn’t been hit as hard as some other markets. However, the feedback that we’re getting is that the market is more positive and there is a sense of realism. We expect that some of the effects and consequences of the downturn will be raised in the conferences, including levels of pricing — from a developer’s perspective — and what will happen in the future. Cityscape gives people an opportunity to ask these questions and allows for more transparency in the market.
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TALK XXXXXXXX | THIERRY PARET | XXXXXXXXXX
Building on reputation Ahead of its official launch this month, president of the American Institute of Architects Middle East, Thierry Paret, talks to The Big Project about industry standards and the future of architecture in the region
An architectural proposal designed by Thierry Paret.
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ince it was established more than 150 years ago, The American Institute of Architects (AIA) has opened chapters across the globe. With 80,000 members worldwide, the organisation will launch its fifth international division covering the Middle East and North Africa region, this month in Dubai. Aiming to increase ethical and design standards, the Dubai base will also provide an educational and social outlet for American architects practising in and around the Middle East. While the new MENA chapter reaches as far afield as Tunisia and Morocco, the “main hub” will be the UAE. “We are not here to preach to architects,” says chapter president Thierry Paret. “We will be holding seminars where we reinforce the organisation’s values and we will also become involved in professional issues,” he says, explaining that such issues must be raised by more than one member and concerned with the code of ethics or professional conduct. “Rightful ownership of intellectual property is probably one of the major issues that arises, but there are many others which cover all aspects of practice. “The process is about having discourse with members of AIA Middle East. The chapter has been put in place to service American architects who are working abroad, but we also want to engage with local architects and encourage them to join.”
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AIA Middle East chapter president Thierry Paret.
“The chapter has been put in place to service US architects working abroad but we also want to engage with local architects joining”
Paret’s appointment in October 2010, celebrated at a dinner attended by industry professionals in Dubai, marked the establishment of the new chapter. Paret, who was elected by board members from locally practising American firms such as AECOM, Gensler, RTKL, FXFowle, KPF and SOM, will remain in the role until the end of 2011, in addition to his post as one of three lead designers at AECOM’s Architectural Design Studio in Abu Dhabi. Commenting that the new chapter addresses a gap in the market for professional affiliation, he adds that despite working “sixty-plus hours a week”, there is “little cross pollination” between architects at different firms. “Yes we are competitors in the market, but because we are not all specialists in every field, if we have information on some point, issue or technical aspect, we can share that for the benefit of the client.” “There is not really a registered body for the architecture profession here; there is the Society of Engineers, but it doesn’t focus on architecture in the same way.” The organisation’s objectives will be achieved via a series of seminars, educational workshops and social events that are open to members and non-members who are practising in the region (see box-out).
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“You look back at something from 10 years ago and think ‘why did I do that’”
Another of Paret’s architectural proposals.
Voice of a profession
The AIA began in 1857 when 13 architects formed an organisation that had the remit to “promote the scientific and practical perfection of members” and to “elevate the standing of the profession”. Now with five international chapters and 80,000 members globally, the group says it is the “voice of architecture in the US”. The chapter has partnered with The American University in Sharjah to accredit its courses to the United States’ Architect Registration Board (USARB) standards. Students from the institution can transfer their qualifications, enabling them to sit the ninepoint finishing exams at the end of their threeyear apprenticeship. In addition, the partnership will provide students in Sharjah with opportunities for firsthand experience of working design studios. AIA ME will also strengthen its presence by collaborating on events with the Royal Institute of British Architects (RIBA). “We are hearing a lot of positive feedback; a lot of it has been from US architects in the
region. Our members create a huge pool of knowledge and skills.”
The future of design
Explaining that design itself is a process of evolution, Paret says architecture is “an old person’s profession”. “You look back at something from 10 years ago and think ‘why did I do that’. “As you go through you’re always looking back and thinking ‘I could have done this differently or better.’” Despite having one eye on the past, Paret says the future of design is sustainability; but not of the ‘green’ variety. “New buildings are being viewed more carefully by clients and architects to make them more sustainable. It’s not sustainability from the point of view of being green, but sustainability in terms of the building existing for 50 or 100 years under different functions.” Naming Dubai’s Burj Khalifa and Rolex Tower, as well as Abu Dhabi’s Louvre and Ferrari World as his favourite examples of architecture in the UAE, Paret says the country
needs to evolve “to become like London or New York” in terms of how buildings are used. “How a building is used today may be different tomorrow. As a client you don’t know what will happen to the land and it is part of the financial strategy to think you may have to take a wrecking ball to the building.” Adding that architects need to design with considerations beyond the immediate project, he praises the foresight of bodies such as the Abu Dhabi Urban Planning Council for integrating new projects with neighbouring buildings and environments. Despite the wider lack of foresight when assimilating new and old buildings, Paret praises the distinctiveness of the region saying it still presents “great opportunities” for architects at all levels. “The downturn has had a positive effect because it gives us a chance to think about what we have created and the quality of our work.” Adding that boom times are “like a feeding frenzy to get the work done”, he observes: “There are still many opportunities here in the Middle East, but firms need to adapt to the new balance of work coming in.”
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Train to gain 26 | www.thebigprojectme.com
COVER | TRAINING
One of Alec’s Saadiyat construction sites.
The developers behind Alec Construction’s training programme explain why knowledge has proved to be the best tool for increasing productivity, profits and job satisfaction on the contractor’s Saadiyat Island projects. Melanie Mingas reports
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or any company in any sector, the idea of investing in staff development is a fundamental element of being an employer. Yet despite this, the construction industry still lags behind. “Most companies don’t leverage their own internal knowledge,” explains Duncan O’Brien, the organisational development manager for Alec Construction. “A lot of companies don’t do training because they say it’s too expensive. So you’re importing the skills and have some fantastic people, but nobody actually leverages it,” he continues.
Speaking from the site office of one of Alec’s four Saadiyat Island projects, O’Brien and his colleague, training manager Nico Van Nierkerk, explain how the practice of “upskilling” has transformed the company’s operations and profits. O’Brien and Van Nierkerk developed a series of training programmes for employees of all divisions and capabilities, with the aim of creating a unified standard the regional industry does not provide. Designed to increase productivity, the courses were developed over a 10-month period. Now in its second year of implementation, the programme has shown a direct correlation between workers’ job satisfaction and the company’s bottom-line profits. Explaining the logic of investing “millions of dirhams” on training at a time when other companies are cutting budgets, Van Nierkerk says: “Bringing people into the UAE is costing the industry a fortune, so somewhere along the line you have got to try and get a little more production out of it. As soon as the downturn came most companies stopped investing in
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COVER | TRAINING
“As soon as the workers arrive here and are shown what they are going to do, you can actually see their eyes widen”
workers, but our directors actually went out on a limb and said one thing we won’t do is stop their development,” O’Brien explains. The strategy is paying off; Alec won four contracts on Saadiyat Island alone in 2010, and the company has received “several” requests from competitors who want to replicate their training initiatives, according to the firm. “The programmes we have are written for Al Jaber and Alec, by Al Jaber and Alec; it’s not a textbook that we’re buying off the internet,” O’Brien adds.
Skills gap
Alec Construction, a division of the Al Jaber Group, has been operating in the region since 1999, working on Dubai’s Madinat Jumeirah, Kempinski Hotel and Marina Mall projects, as well as Abu Dhabi’s Gold Links Club House. The company is currently working on “the biggest project in the UAE”; the expansion of Dubai International Airport.
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The aim for implementing a Training Within Industry (TWI) programme was to reduce the cost-base allowance and increase productivity, all within a self-imposed, 12-month deadline. “What we found was we were haemorrhaging money on labour; we were exceeding our cost base liable by massive margins and when we really got down into the nitty gritty we realised labour was causing the problem. We overspent by millions of dirhams.” By analysing productivity, the company found a direct correlation between profits and implementation of the training programme.
Building on knowledge
Recruiting teachers from within the existing workforce, trades courses are taught in Hindi, with additional English classes to address language barriers and raise workers’ esteem. Built on a system similar to others used in the UK, the entire initiative comprises a number of elements; from a graded, in-house
safety training matrix to artisan development; foreman development; a six-month bronze level programme; a 12-month silver level programme and a further gold programme, which is currently under development. “It’s basically various people’s experiences that we are putting on paper,” Van Niekerk explains to The Big Project. “Over the years you learn the methodology about the construction industry and that is what you use; you just put everybody’s ideas together and try to keep it as simple as possible,” he adds. In addition to education, there is a companywide performance management system with feedback gauged at regular intervals. A further productivity-related rewards programme recognises the best-performing workers, who then receive prizes such as bikes and telephone cards. Certificates are also awarded and an internal ‘happiness index’ survey is conducted to gauge job satisfaction. Together, these factors contribute towards the reputation Alec
Alec overcompensated on labour. the solution was to spend less and boost productivity
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“We have a four-point company ethic; integrity, courage, reliability and the last one is ‘we value our people”
$ millions Upskilling the workforce has involved identifying areas for improvement and training teams on site. Classes have been delivered in more than one language and contractors’ performance is continuously monitored.
“Staff come to work with a clear objective and leave with a sense of achievement,” he says.
Setting standards
holds in India’s assessment centres. “I think we are probably one of the best-known companies and potential employees queue to join us because of the investment and the treatment they are getting access to over here. There are companies I’m not going to name, but if the workers think you’re from one of these companies they won’t even consider your offer, no matter what the package is,” says Van Niekerk. “We have a four-point company ethic,” adds O’Brien. “Integrity, courage, reliability and we ‘value our people’.” Giving his top tips for a happy workforce based on his observations, O’Brien names “purpose and direction” as the primary satisfaction and productivity drivers within the industry today.
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OVERSPENDS ON LABOUR
Despite winning many construction awards, the lack of codified educational standards in the region means there is no scope for recognition in the wider industry, for either Alec’s programmes or the workers’ progress, according to the firm. “In the UK you will have a qualification broken up into different standards, but there is nothing like that in the UAE, because you’re just importing all the labour,” says O’Brien. With no criteria to meet, the lack of a unified education system also hinders the employment process. During recruitment days in India, prospective labourers undergo basic skills assessments; they are typically being asked to build a wall one metre high by one metre long. “They have probably been doing that for the last two years so they’re pretty good at it, but as soon as the workers arrive here and are shown what they are going to do, you can actually see their eyes widen,” says O’Brien. Commenting on the rumoured establishment of a
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“We were haemorrhaging money on labour; we were exceeding our cost base liable by massive margins. We overspent by millions of dirhams”
History of TWI The training within industry concept (TWI) began in 1940s America, when the country experienced the largest upskilling initiative in the world. By
standards authority in Abu Dhabi, a booming market in India, minimum wage negotiations for workers and the negative reputations some companies now hold among the Indian workforce, Van Nierkerk predicts a seismic shift in focus across the industry, which will make upskilling “critical”. “Once the minimum wage happens the industry will realise it’s not cheap labour anymore. They are going to want qualified people to do the job,” he says. “In the wider industry there is focus on driving productivity, but not through up-skilling,” observes O’Brien. “Cash flow was freely available, so you had people knocking on your door asking you to do work. The allowables you were setting yourself as a company are probably far greater than what you could set today. Today the whole role has been reversed.” Adding such lack of consideration will “absolutely” have implications in future, O’Brien concludes: “All the training we do is focussed on one thing and one thing only and that’s productivity. I don’t think any construction company in the UAE does what we do at our level.”
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the end of World War II, in excess of 1.6 million workers across 16,500 manufacturing plants had received a training standards certification Inspired by the success, Alec Construction LLC presented the theory to the managing director and board of directors at Al Jaber, and achieved a management buy in Alec Construction’s Duncan O’Brien.
Following this, ground staff identified the major skills gaps which required training and linked these skills to a standards framework to quantify the education process. Today credits are awarded, with a qualification worth 126 credits. “The result of the credit system is that we know how strong our workforce is at any given time’” said Duncan O’Brien, organisational development manager for Alec Construction, during a presentation at The Big 5 in November 2010. “We don’t use a pass or fail method; members are either deemed competent or incompetent; graded
Alec Construction’s Nico Van Nierkerk.
on a scale of 1-5,” he added.
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Market Explorer | BAHRAIN
Bahrain Bay is among the megaprojects ongoing in Bahrain.
Pearl of the Persian Gulf
Driven by a strong financial sector and public-private partnerships, the Gulf’s smallest nation is bouncing back from a difficult three years. Melanie Mingas finds out why Bahrain is back in business
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or a 33-isle archipelago with fewer than one million residents, Bahrain is deceivingly robust. After averaging a GDP real growth rate of 8.4% in 2007, growth plummeted to 3.1% in 2009. According to local media reports at the time, the country was “thrown into crisis”, with the construction industry directly affected. Project costs spiralled, real estate activity slowed and liquidity and confidence dried up, with the Central Bank reporting a 30% decline in construction permits. Yet, buoyed by a strong financial sector, Bahrain defied the odds, announcing economic growth of 4.3% in 2010; with the construction industry alone expanding 5% on 2009 levels. Projects worth $1.628 billion are now scheduled to begin by 2012. “The pace of the construction sector depends on the level of the economic feasibility of projects that, in turn, depends on the low prices for land acquisition and real estate which is still considerably high,” Dr Essam Fakhro, chairman of Bahrain Chamber of Commerce and Industry (BCCI) tells The Big Project. “It also depends on increased funding and development of projects funded by public-private partnership (PPP), especially the construction of apartments and housing units for citizens who are earning a limited income,” he adds.
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“A growing number of international companies are choosing Bahrain as the gateway to the trillion-dollar Gulf market”
There is little doubt economic strength is returning. The World Bank classifies Bahrain as a high-income country and, according to the 2010 Economic Freedom in the Arab World Report, it has the highest economic freedom of 22 Arab nations. “Bahrain’s steady, sustainable economic growth and stability is supported by our long-term commitment to economic diversification and the continued strengthening of the private sector. “A growing number of international companies are choosing Bahrain as the gateway to the trillion-dollar Gulf market,” said Sheikh Mohammed, CEO of Bahrain’s Economic Development Board. After oil, aluminium exports and finance, the construction industry is one of the most lucrative and it is forecast to grow at an annual rate of 7% until 2013.
Bouncing back
In an effort to minimise the impact of the global financial crisis, the government has, and continues to take, a number of steps to protect the Kingdom, including increasing the volume of tenders and initiating a number of PPP-funded projects. The Ministry of Commerce even intervened to prevent a 30% rise in the price of cement early in the New Year, a move welcomed by contractors.
703,000 The current population of Bahrain
The Bahrain World Trade Centre has been deemed a world first in sustainable design.
“Immediately following the downturn, the government and various concerned parties took the initiative to develop and enhance precautionary measures to face the repercussions of the crisis on the financial, economic and service sectors,” Dr Fakhro comments. Despite the measures, Fakhro says some construction companies were forced to “reduce the value of contracts for work in an attempt to attract investors”, a tactic he says is testament to the low number of investors and entrepreneurs investing in Bahrain’s construction projects. “With regards to the construction sector and its related industries, measures have been taken by the government in relation to the exposure
of banks, infrastructure and housing projects, and the volume of tenders,” he adds. A report by Ventures Middle East states the construction industry is an “integral part” of the economy and it receives due attention in the country’s future plan; Vision 2030. Vision 2030 encompasses strategies for the economy, government and society, aiming to collaborate with the “legislative body, civil society and private sector” to realise the need to “transform” the economy, according to recent official documents. In addition to these abstract concepts, it comprises three “guiding principles”; sustainability, competitiveness and fairness. Broken down, it commits the government to expansion and diversification with growth primarily fuelled by PPPs. A paper published in late 2010 by Markets and Research indicated the plan would potentially have a “high impact” on the country’s construction industry and wider economy. Vision 2030 concludes that nurturing growth and investment from the private sector, particularly in the construction industry, is the most effective way to address a reportedly “oversized public sector”. To attract investment, the country is now focused on “high-quality public services, cutting-edge infrastructure and an appealing living environment”. “If a person has created a good contact list they can get lots of work in both the private as well as the government sectors,” says Robbie Ferguson, CEO for Bahrain-based Karimeh Construction. “The government sector is harder to crack as they seem to favour local companies even if they have failed to complete previous contracts on time or budget,” he adds.
Infrastructure
Collaboration between the public and private sectors will also help reduce the government’s
Robert Ruse, Atkins resident director in Bahrain.
stake in infrastructure spending, according to reports released late 2010. Part of Vision 2030, a contract was awarded last month to Ahmed Mansoor Al A’Ali for a $13.5 million, four-lane road connecting Muharraq to Manama. Upon completion (due in August 2011) the road will provide a detour to allow completion of the King Faisal Highway. Additionally, the Friendship Bridge project, linking Bahrain with Qatar, is said to be on track after lengthy delays, following the announcement Qatar will host the 2022 World Cup. Another element of Vision 2030 is a $3.45 billion upgrade to expand Bahrain’s sewerage system nationwide and establish a rainwater drainage network. Like its GCC neighbours, Bahrain’s airport is also undergoing massive expansions; passenger capacity will reach 15 million per year; aircraft stands will increase from 46 to 64 and the number of bridges and check-in desks will double. Speaking when the contracts were signed in 2009, deputy Prime Minister and transportation minister Shaikh Ali bin Khalifa Al Khalifa said: “The expansion will cater to the increase in passenger and aircraft traffic up to the year 2015, with passenger figures expected to grow rapidly and reach around 12 to 15 million per annum by that time.” “The project is expected to take 49 months to complete with an expected design period of 15 months, a construction period of 24 months and a period set aside for tendering in between,”
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Market Explorer | BAHRAIN
strength in numbers
Market Explorer | Bahrain
WORKFORCE
352,000 Bahrain’s native labour force
RIGHT AND BELOW: Bahrain Bay.
he added. Further expansions are scheduled with capacity expected to reach 45 million passengers by 2030.
Under construction
Dr Esam Abdulla Fakhro, chairman of the Bahrain Chamber of Commerce & Industry.
FACTS Of 22 Arab nations, Bahrain has the greatest economic freedom Of 57 leading economies, Bahrain is the most liberalised financial sector 100% foreign ownership of companies is permitted in more than 95% of business activities 0% corporate taxation; the most competitive tax environment in the world according to the World Economic Forum (WEF) Of 57 leading economies Bahrain has the most liberalised financial sector (WEF) Bahrain is the only GCC country to impose income tax
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While it has been said the opportunities in Bahrain are less lucrative than those of other GCC markets, the government announced plans in late 2010 to fast track a number of housing, health, education and economyrelated projects. For the moment, it’s all eyes on Manama, described by the tourism authority as a “city of minarets and skyscrapers”. A $2.6 billion private investment residential project, which will redevelop the old market district, with a flagship 28-storey commercial and retail tower at its centre, will regenerate Manama’s central market, hotels and recreation spaces. Other projects include Bahrain Bay, featuring the country’s first Four Seasons Hotel, and the $6 billion (BD2.2b) Durrat Al Bahrain project — a mixed-use 20km² city. There are also a number of community developments such as Riffa Views, Amwaj Islands, Diyar Al Muharraq, Raffles City and Villamar which all offer a range of residential properties and tourism and leisure facilities. With a ready-made community on the doorstep, these new mini-cities are a magnet for retail developments; constituting more than half the total projected value of projects in the sector between 2010 and 2015. Aiming to create the same modern cityscape as its GCC neighbours, the design zeitgeist fuses traditional Arabic influences and modern flair, says Atkins Middle East’s resident director in Bahrain Rob Ruse. “The traditional vernacular of Bahrain’s architecture is very much influencing modern
“Residential construction accounts for 51% of the entire construction sector, but 39% of the native population are on waiting lists for affordable housing“ design. The key tenet is the concern with sustainability and reducing the carbon footprints of developments in a cost-effective manner. “In fact, traditional Arabic architecture is at the vanguard of this movement because historically, local buildings are exemplars in implementing passive design processes such as shading and wind movement,” he explains. Atkins designed the Bahrain World Trade Centre (BWTC), the first building in the world to integrate wind turbines into the building’s structure. They are capable of meeting up to 15% of the building’s energy needs. “The concept design of the towers was inspired by traditional Arabian ‘wind towers’, which enable the very shape of the buildings to harness the prevailing onshore breeze from the Gulf, providing a renewable source of energy for the project.”
Real growth
In January 2006, the United Nations Economic and Social Commission for Western Asia, named Bahrain the fastest-growing economy of the Arab world. Despite the impact of the recession, the country still has strong trade links and a number of real estate projects under
3.5% Bahrain’s inflation rate
construction or recently completed. Yet these developments fail to address the fact that despite residential construction accounting for 51% of the entire construction sector, 39% of the native population are on waiting lists for affordable housing. The Ministry of Housing recently initiated a programme to build 4500 units to meet the supply-demand gap, enabling more middleand low-income Bahraini families to move into affordable homes. Each unit would have to house 10 people to meet the demand; yet the government hopes to cut the average waiting time for subsidised housing to five years by 2014. Previously, low rents have stalled the market and prevented investment in such schemes, presenting opportunity for PPP collaborations; also expected to strengthen the 2030 vision. A burgeoning tourism industry is also sustaining development, with leisure and business visitors from across the GCC, particularly Saudi Arabia, regularly visiting Bahrain for its scenic landscapes, liberal culture and Formula 1 race track. Aware of the potential, the government is aiming to re-brand the country for the European tourism market, with projections the sector could account for 6.5% of GDP by 2020. Plans to establish resorts for new visitors will offer lucrative opportunities for private-sector contractors, developers and designers. According to the national Chamber of Commerce and Industry, investment opportunities include infrastructure and housing projects; industry, services and tourism development, commercial developments and
3.9%
Sector growth The current unemployment rate in the country
A number of significant projects are underway in the country.
towers, and the 2022 World Cup in neighbouring Qatar (see box-out). “The ‘Friendship Bridge’ between Bahrain and Qatar will be constructed by 2015, worth $8 billion, which constitutes a great opportunity for economic growth,” says Dr Fakhro. “These opportunities have been showcased at the many construction events that have been held in the region and around the world, including investment conferences and exhibitions,” he added. Ironically, as firms from around the world look to tap this understated, yet lucrative, market, Bahraini firms are looking to Saudi Arabia’s Eastern Province and Qatar to “showcase” their construction expertise, according to the BCCI. Filling the gap, foreign investment accounts for around one third of total private business investment in Bahrain and prospects for foreign companies, particularly SMEs looking to tap a new market are strong. “Starting a business here is fairly easy if you know the process. Expect the usual Middle East bureaucracy to take many times longer than in a western nation, but there are people here who can help,” advised Ferguson. “The general feeling is that it is much easier to start a company in your home country and then come here and open an agency office, although tax implications mean the advantages can be lost,” he adds.
TOP TENDERS Project: GCC railway
Details: Construction of 2200km-long railway transportation system to connect the GCC countries, which will comprise 16 lines totalling as much as19,000km Project: Tubli Wastewater Treatment Plant expansion development Details: Build-Operate-Transfer (BOT) contract for the expansion of Tubli Wastewater Treatment Plant, with a capacity of 150,000m³ a day. Bidders are expected to submit their proposals in mid-2011 Project: Awali Field Development Project Details: Development of Awali field for oil and gas exploration to double the oil output to 100,000 barrels per day and increase natural gas production capacity to two billion ft³ per day Project: Building Materials Terminal Project Mina Salman Port Details: BOT contract for the development of a building materials terminal at Mina Salman Port Project: Masakin Al Yasmeen Residential Project development Details: Construction of Masakin Al Yasmeen residential scheme comprising a six-storey apartment building comprising 26 units
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Market Explorer | AHRAIN
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Volvo pipelayers
“The most important difference between a Volvo pipelayer and an alternative pipelayer is the possibility to turn the machine around without any problem through 360°. This is new for the pipeline”
Italian contractor Ghizzoni S.p.A puts Volvo’s new pipelayers to the test ahead of the launch of the product in the Middle East The equipment
Since the basic design of pipelayer equipment was first pioneered in the 1920s, the industry has been slow to innovate. Previous versions were unable to swing; making precise load positioning difficult, time consuming and, at times, dangerous. Volvo’s new pipelayers are designed around the 360° swing excavator concept, a “revolutionary” approach with a swinging upper structure to allow positioning of the load. “Volvo pipelayers represent a major step forward versus conventional, side-boom, pipelayers,” Frank Schmitt, product manager at Volvo Construction Equipment (CE) Region International, tells The Big Project. “The 360° approach gives them many advantages, not only in their production capability, but also in safety,” Schmitt adds. The equipment is available in two models, the PL4608 AND PL4611, both developed around the Volvo EC460C tracked excavator. The concept was initially presented at the 2007 IPLOCA convention in Sydney, where the PL4611 was recognised for its “significant contribution to innovation”. At the 2009 convention, the PL4608 was named runner up in the technologies category. The machines also feature an undercarriage for easy directional changes and smooth operations on rough or muddy terrain; when not used for pipelaying they can be converted to excavators or used for other heavy-lift applications, such as truck loading.
Key facts
Model: PL4608 Operational weight: 57,475kg Tipping load: 80,000kg Hydraulically-variable undercarriage Up to 3.65m maximum machine width Ability to retract to 3.15m with removal of the pipelayer boom for on-road transportation Can be transported by road without permits Overall weight of 45,275kg, without hookon and track side frame counterweights Model: PL4611 Operational weight: 68,140kg Tipping load: 110,000kg Working platform: 5.36m long Four retractable outriggers fitted with hydraulic jacks Self-reassembling and disassembling
Volvo product manager Frank Schmitt.
“This was an important consideration in the development to ensure maximum machine utilization, consequently, the best return on a customer’s investment and good second-life opportunities when sold on. The Volvo models exceed global design and safety requirements for pipelayers.” According to Volvo, the most significant requirements are OSHA regulations, ASME B30.14, ASME B30.5, ISO8813, and DIN 15018 and 15019. Additional features for the PL4608 include a glazed cab, which rises hydraulically to a height of 760mm. The PL4611 model has a fixed raised cab.
To the test
The PL4611 pipelayers have already been used to build the
60km Bunde-Etzel Pipeline (BEP) in Northern Germany - one of Europe’s major gas pipelines. They were introduced to the Middle East market at Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) last November. A test drive in Saudi Arabia is due to begin soon with further demonstrations planned in the region. Italian project contractor Ghizzoni S.p.A was commissioned by BEP to complete the pipeline by mid-2011, for a contract worth up to €60 million (US $81 million). According to Ghizzoni’s onsite project manager, Marco Scazzi, the equipment is “the future for the pipelayer”. “It is fast, modern and a good choice because the capacity of the machine is higher than any other competitor. We are very satisfied about the load management system as you can control the lowering. “You have no moment when the machine is not stable, so this is very important. There is no pipelayer with this kind of system. This is the first,” he told The Big Project, last month. Scazzi says the main benefit is the high capability of the machine, which lends itself to the heavy pipe featured for a powerful output. However, the most important difference between a Volvo pipelayer and another alternative pipelayer is the possibility to turn the machine around — without any problem — through 360°. This is new for the pipeline, he observes. “It is also easy to transport the machine because you can remove the chains. You can carry them by lorry and the principal machine by a normal truck without any problems or particular authorization required from the authority. This is very important.” “When a section is ready to be lowered there is a very heavy string, allowing you to lower materials by one kilometre per day and speed up the process,” adds Scazzi.
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TRIED AND TESTED | VOLVO
Volvo pipelayers were used on the Bunde-Etzel Pipeline, Germany.
Tru-lift
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ICONIC STRUCTURES | ADEC SCHOOLS
“If you want sustainable schools delivered quickly, in a limited timeframe and there is a lot of repeat design involved, pre-engineered solutions are the way to go”
One of the many proposed ADEC schools.
Top marks
Sammon Group construction director Austin Duffy reveals how the family-run Irish company is meeting Abu Dhabi Education Council’s vision to deliver schools rated three on the Pearl-rating system, in record time
S Sammon Group’s Austin Duffy.
ecuring the budget and client buy-in can be one of the biggest challenges in delivering a sustainable project, according to Sammon Group. However, sustainable objectives on the firm’s latest Middle East project to construct five schools under the Abu Dhabi Education Council (ADEC) Future Schools programme have been driven by the client. “Sometimes it’s difficult to convince a client to integrate sustainable systems with the view that they will see a payback over 20 years, but the more intelligent clients are already thinking that way. They just need to understand the benefits, even if they don’t understand the technology,” says Sammon Group’s Middle East construction director
Austin Duffy. As part of ADEC’s 10-year strategic plan to transform the education system, phase one of the Abu Dhabi Future Schools Programme involves the construction of 15 new institutions across the emirate. The business, which was established in Ireland in 1886 and has been operating in the UAE for three years, was awarded one third of the tendered design-and-build contracts, last year. The projects are located at Al Towaya, Al Jahly, Al Khazna in Al Ain, Al Khatem and Abu Dhabi West. But perhaps what is most significant, each school scheduled to be delivered in August and covering a combined total of one million square feet, has been designed to
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ICONIC STRUCTURES | ADEC SCHOOLS
“The design and lifecycle of these buildings has to be at least 40 years, preferably heading towards 60 years; that is part of the design criteria brief”
Image of the Abu Dhabi West school, under construction.
back to school
5200 The number of new school places provided by the five projects led by sammon group
achieve an Estidama three Pearl rating – the first of their kind.
Pearl diving
Working closely with ADEC, the design team and delivery partner Musanada, Sammon Group will implement features such as energyefficient air-conditioning systems, water conservation devices, PV panels for solar energy, solar panels for water heating, intelligent lighting controls, and landscaping featuring ‘ecotrees’ and ‘vertical gardens’. “The design and lifecycle of these buildings has to be at least 40 years, preferably heading towards 60 years; that is part of the design criteria brief. “These schools are also designed to be flexible and can be easily expanded for second and third phases. They are located in expanding communities and so must be built for the future,” asserts Duffy. The schools will also feature the latest technologies, such as interactive teaching boards, and a “dynamic layout”, he reveals. With competition among contractors at an all-time high, one may wonder how a familyrun company, relatively new to the region, won these government-funded, high-profile projects. “We have expertise in design and build having completed a lot of work for the Irish Government’s Department of Education, this included delivering a number of schools on a fast-track construction basis within a 20-week timeframe,” Duffy recalls. During its short time in the region, Sammon Group also partnered with Gems Education, dubbed the world’s largest private kindergarten to grade 12 education company, to deliver several large and reputable projects, including Gems Modern High School Dubai and Gems Millennium School, Sharjah. While it “wasn’t in the client’s requirements to achieve green credentials” on the latter project, according to Duffy, the firm implemented some of its inhouse, best-practice principles during the construction process.
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“The challenge any international company expanding into the Middle East will experience is training the labour force” “We fully comply with our own environmental plan, even if it isn’t in the client brief. We implement waste-management plans, occupational health and safety practices and other elements of best practice commonly encountered in Europe.” These processes include using material excavated during large earth-movement exercises for non-structure fill material on other projects, as well as segregating materials within 40km of the construction site, where possible. On the Modern High School Dubai, it was necessary for the firm to work with the head teachers at the school, which has a capacity of more than 2500 pupils, to ensure a smooth
relocation from the previous site. The firm was also working to a short, seven-month timeline. “We must create better environments to work in. On all of our projects, a huge amount of thought has gone into the acoustics, optimum lighting levels, solar shading, external elevations and indoor air quality. “In some of the Dubai schools we introduced a simple-but-innovative system incorporating tiers of air-ventilation fans, allowing more recycling and movement of air. This means that for a couple of months of the year, during winter, the air conditioning can be switched off. “It’s a very simple idea that works well and that is why we asked for feedback from head teachers, this was one of the things suggested.” But Duffy says it’s even more essential for all parties to fully embrace the task of creating a sustainable building. “Don’t have a back-up plan. Often, clients invest massive amounts of money implementing sustainable features and still install the big chillers and boilers — just in case. That is not truly embracing the concept.” If done properly, however, Duffy suggests 10-20% savings can be made on the lifecycle cost of a building.
Overcoming obstacles
But, while the firm has had a positive response to its methods in this region, as with all new markets, entering the Middle East has posed challenges for the firm.
work on, which we’ve carried into the GCC market and it’s been welcomed. “We can do a 32-classroom school in 20 weeks having taken possession of the site,” asserts Duffy. Whether it’s speedy construction, environmental awareness or another example of best practice that gives a contractor an edge in today’s competitive industry, every firm must have one — and it seems Sammon Group has got it sussed.
Profile Sammon Group’s regional construction director Austin Duffy is responsible for the management of operations in the MENA region, including the Abu Dhabi Government’s Future School Building Programme, part of Vision 2030. With more than 17 years’ experience in the construction industry in the Middle
“There are things that we have to worry about here that we don’t have to consider in Ireland. The UAE schools are larger and of a very high quality. “The challenge any international company expanding into the Middle East will experience is training the labour force,” explains Duffy. “We bring our formwork systems from Europe and they are quite advanced products. If I bought over four Irish carpenters, they would erect the system like clockwork, but the local workforce — which comprises several nationalities — may take a while to understand new formwork systems.” The firm uses the reusable aluminium formwork solutions — “that don’t require huge cranes” — as an environmentally-friendly alternative to traditional timber frames, which tend to be used and then disposed of. “To overcome training challenges, we have bought over teams from the UK and Ireland to train staff and the progress has been remarkable. It’s been a learning curve and we now consider the introduction of new western practices to be working well. No matter what culture workers are from, once they have found a better way to do things and witnessed the benefits in terms of productivity, it becomes second nature to them.” Another challenge has been finding suppliers with a “likeminded” attitude to environmental
considerations, says Duffy: “Any contractor that works for Sammon must adhere to our qualitymanagement systems, including environmental-management plans. “We issue questionnaires and if they can’t answer the questions they don’t make it onto our supplier list — we’re seeking likeminded people, not just lip service and have dedicated people to manage this side of the business.” However, Duffy also highlights one particular benefit of working in the region; the weather: “The dry climate means we can get the structure and interior finishes completed early without worrying about waterproofing the roof and windows. This allows us to start the fit-out earlier in the construction process.” It seems timely delivery is as important as environmental considerations for Abu Dhabi, as demand for educational institutes increases in the emirate. One method that has helped the firm stick to strict construction schedules has been pre-engineered buildings, which Duffy dubs “the future of schools construction”. “It’s cheaper to build pre-engineered schools; thought has gone into every aspect and they’re delivered very quickly onsite. “If you want schools delivered quickly, in a limited timeframe and there is a lot of repeat design involved, pre-engineered solutions are the way to go. It’s something we’ve done a lot of
East, Ireland, UK and the US, and a former director of a leading international project management company, Austin has particular expertise in the delivery of complex construction projects across commercial, residential, industrial, leisure, civil engineering and educational sectors. He was the project director for the Irish Department of Education & Science School Building Programme in 2008, delivering 25 schools on a design-and-build basis within a demanding 10-month programme.
Construction trivia •
• • •
•
•
Sammon Group is tendering for kindergartens, private education facilities and university buildings It has been operating in the UAE for the last three years The firm has delivered 1.5 million ft² of school accommodation in the UAE The five ADEC schools the company is currently working on will provide 5200 new school places These schools are designed and constructed to achieve an Estidama three Pearl rating Construction commenced in July 2010 and is scheduled to be completed in August 2011
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ICONIC STRUCTURES | ADEC SCHOOLS
“We fully comply with our own environmental plan, even if it isn’t in the client brief. We implement waste-management plans, occupational health and safety practices and other elements of best practice commonly encountered in Europe”
SUPPLIER HOTSEAT | SAINT-GOBAIN
High and dry Saint-Gobain managing director Craig Chambers reveals the company’s strategy to develop dry-lining solutions and expand its product portfolio
S
ince the firm’s first project supplying glass for the Hall of Mirrors at the Palace of Versailles, France, in 1665, Saint-Gobain has grown to be one of the largest suppliers of buildings materials in the world. Operating across 64 countries and employing more than 190,000 people worldwide, the company provides ductile iron pipe systems, plasterboard and plaster, insulation, industrial mortars, ceramics and plastics, abrasives, fire glass and reinforcements. Today, the company claims to be the number one gypsum plasterboard manufacturer. With around 75 quarries in operation, it produces enough plasterboard annually to go around the world 22 times. This year marks the first anniversary of the opening of Saint-Gobain’s Abu Dhabi-based plasterboard plant. “For us, the regional construction market poses great opportunities as we look to develop the use of lightweight, internal dry-lining solutions — a construction method that is widely accepted as the norm in many other countries and regions around the world,” explains managing director Craig Chambers. “Significant savings can be made in the region in foundations, programme schedules, the quantity of materials on site and waste
“Construction has changed, but all sectors have developed. It’s encouraging to see improvement in the areas of environment and sustainability”
One of the quarterly Gyproc seminars, held in Dubai.
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through our ability to offer bespoke product dimensions,” he advises. Despite the rapid growth, there is still consideration for the local environment with initiatives in energy optimisation, waste heat re-use, water consumption reductions, distribution via rail networks, quarry conservation and a drive to use recycled materials, particularly in the 100% recycled plasterboard paper liners.
Meeting demand
Locally, Saint-Gobain’s key projects in 2010 included the Ferrari Experience, Capital Gate and the Masdar Institute, all in Abu Dhabi, Dubai’s Infinity Tower and the Sheraton Hotel in Muscat. The company supplies dry-lining solutions, manufactured from locally-produced Gyproc plasterboards, Gypframe metal components and a range of Gyproc accessories, such as jointing compounds, tapes and fixings. The products and systems can be used in all construction types, including infrastructure, leisure, residential and commercial. “Dry-lining systems are typically much quicker to install than traditional methods of construction – so the demands we can meet are speed and higher levels of performance in the areas of fire, acoustics, impact, thermal and moisture resistance,” explains Chambers, adding that all products are eligible for the company’s SpecSure system warranty.
Future vision
This year will include expansions to the product portfolio, the introduction of more bespoke solutions for customers and strengthened relationships with architects and consultants, fostered via the quarterly Gyproc Seminars. The forums allow discussion on the technical and locally-significant aspects of dry-lining such as fire performance, impact resistance and moisture performance. “We will strive to act on the success of 2010. We’re already involved with Abu Dhabi Central Market and the Financial Centre along with the Barwa City in Qatar, to name a few. This region has had significant growth in recent years and there will be more of the same in future,” Chambers predicts.
Saint-Gobain managing director Craig Chambers.
In addition, to positioning itself to act on the opportunities in Qatar, Saint-Gobain also sees potential in markets in Saudi Arabia, Iran and in Iraq. “Construction has changed, but all sectors have developed. It’s encouraging to see improvement in the areas of environment and sustainability.” “Buildings that will last and serve their occupants in a way that is compassionate to their surroundings,” Chambers concludes.
Fast facts Saint Gobain’s products insulate more than half of all homes in Europe •
They have equipped 80 capital cities and more than 1000 major cities with ductile iron water pipes; including Abu Dhabi and Doha
•
They glaze one in every two cars in Europe
•
The firm employs 191,500 people worldwide
•
Has more than 91 major industrial sites
•
Sales reached in excess of US $52 billion in 2009
•
Reached 388 patent applications in 2009
•
Has approximately 75 Gypsum quarries
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Suppliers in the spotlight A round-up of the latest news and announcements from industry suppliers in the Middle East
Imdaad Facilities Management
Konecrane Finland Corporation
Volvo Trucks and UAEbased FAMCO
New strategy for growth throughout the GCC launched at senior management meeting
Finnish company delivers first ASC cranes to the region for use at ADPC’s Khalifa Port project
Al Futtaim group subsidiary ready to distribute new truck model in the Middle East
Facilities management provider Imdaad has launched a new corporate growth strategy it will roll out in 2011. The new organisational model is designed to take “full advantage of emerging market opportunities in the GCC,” according to CEO Jamal Abdullah Lootah, who was speaking at a senior management meeting, last month. “The new road map we have unveiled will help optimise our market potential in key growth areas such as waste management, while ensuring that we are able to maintain the bestequipped professional workforce in the industry,” said Lootah. The company, which operates throughout the UAE, counts Emaar, Nakheel, Jebel Ali Free Zone “Jafza” and Barclays Bank among its clients. Imdaad’s portfolio includes Burj Khalifa, The Palm Jumeirah and Atlantis, The Palm. The move will focus on customer service, quality and best practice. Further strategies are expected to strengthen the workforce resources and boost capabilities in “key growth areas”, such as waste management, according to the firm. “In particular, we are deeply thankful to Hisham Abdullah Al Shirawi [pictured above with Lootah], chairman of Economic Zones World, and Salma Hareb, CEO of Jafza and Economic Zones World, for their confidence in Imdaad’s expertise,” said Lootah.
A contract for 30 automated cranes has been awarded to Konecrane Finland Corporation by Abu Dhabi Ports Company (ADPC). The ASC cranes will be delivered to Khalifa Port Abu Dhabi in two batches; with 14 arriving by the end of March 2012 and a further 16 by the end of June 2012. The light-weight, high-efficiency cranes have a lifting capacity of 40 tons and are equipped with an active load control, active sway prevention and horizontal positioning systems for both automatic and remote operation. Konecranes’ adaptive automation enables box handling without trolley and gantry inching, so reducing cycle times and saving energy, according to the company. They will be used for stacking containers for the semi-automated container terminal planned for the port. “This is a very important order for Konecranes,” said Niklas Brönn, managing director of Konecranes Middle East FZE in the UAE. “The interest for automated terminals is increasing and Konecranes has a proven crane solution for these.” The company has previously delivered ASC cranes to a container terminal in Virginia, USA, and has a further 36 on order to be delivered to a terminal in Barcelona. Pictured above: BU Port Cranes VP Mika Mahlberg with ADPC CEO Tony Douglas.
The new VolvoFMX is to be distributed in the Middle East market by Al Futtaim Auto and Machinery Company (FAMCO). Using feedback from drivers, the new model has been developed with new features such as an upper grill, aggressive lower front, threepart steel bumper with 3mm thick steel corners, rugged skid plate, protective bull bar, a powerful tow hook and headlamp mesh protection. Volvo has described the model as a “tough truck” that has been designed for demanding road conditions. “The new, purposely-engineered VolvoFMX exudes confidence, reflecting its capabilities inside and out,” said Volvo Trucks president and CEO Staffan Jufors. “With all the improvements in the new truck, a full range of chassis configurations to choose from and a strong service support package, we are convinced that our existing customers will become even more satisfied,” said FAMCO managing director Paul Floyd. The improved features include a new upper grill, inspired by the FH series. The Volvo iron mark is larger and more visible, while the FMX globe sign makes a bold statement. A new central towing device is a robust and reliable tool for towing or shunting, and can handle up to 25 tons. The lower front has been extended 165m and an anti-slip cab instep has been added with a foldable extension step, to enhance grip.
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The approximate number of Dorma employees working around the world
Dupont Sustainable Solutions (DSS)
Conject Holdings GmbH partnership
Dorma and UBM partnership formed
Firm steps up expansion into emerging markets with acquisition of chemicals company
New service set up to support concept, design, construction and facilities management
Union extended to serve the Kingdom of Saudi Arabia’s booming construction market
A definitive agreement has been signed between Dupont Sustainable Solutions (DSS) and American Securities LLC to acquire MECS Inc. The agreement will aid DSS’ expansion into emerging markets in the Asia Pacific and the Middle East. DSS said it expected the acquisition will increase its market for clean air and fuel offerings from approximately US $200 million to $1 billion. The company has recently partnered with Topaz Engineering, Aggreko and Dawood Hercules Chemicals Limited. “Dupont Sustainable Solutions is a partner of choice for key industries throughout the Middle East region and is in a unique position to help others in their journeys to safety excellence,” said Johan van der Westhuyzen, DSS Middle East leader. MECS converts waste sulphur into sulphuric acid, a chemical used worldwide. Major growth areas for sulphuric acid production in future are expected to be China, India, the Middle East and parts of Africa. DuPont and MECS also have a history of offering complementary technologies in the refining industry. “I believe the union is an excellent fit and will benefit both our organisations and our customers,” said MECS CEO Nick Bhambri. Pictured above is Dupont Sustainable Solutions president James Weigand.
A new group has been formed from the acquisition of BIW Technologies Ltd and Germanbased Conject Holdings GmbH, to provide Infrastructure Lifecycle Management (ILM) software applications. The group’s operating subsidiaries, BIW Technologies and Conject AG, will each retain their own local identities, offices, staff and resources. The new group has combined revenues of €18 million (US $24 million), with 180 employees and 170,000 active users. ILM applications support asset-based projects through the whole lifecycle, from concept, design and construction through to FM. “Conject and BIW share the same vision and approach to innovation and customer service,” said Dr Uwe Forgber, director, Conject Dubai. “Many of our customers realise that 80% of all costs come from running a building, not constructing it. Together, Conject and BIW can offer clients a service that meets the needs of managing those critical assets.” BIW claims the online project management software is carbon neutral, and has been used by around 15,000 organisations. Regional projects include Down Town Jebel Ali and Abu Dhabi’s Capital Plaza (pictured above). “In these challenging economic times, clients look for suppliers who are financially secure, have a robust business model and global reach,” BIW Dubai GM Dr Asif Sharif added.
Long-term distribution partner for Dorma, Universal Building Material Merchants Ltd (UBM), has been named distribution partner for Dorma’s operations in Saudi Arabia. The two companies have been working together for more than a decade. “The strategic partnership with Universal Building Materials Merchants allows Dorma to provide its current and future customers in Saudi Arabia with specific, value-added technical back-up and project-related services and solutions from Dorma’s project management team in the region,” said Ben Shaw, managing director of Dorma Gulf. “UBM’s level of in-house technical expertise and capabilities, including its in-house scheduling team, warrants its recognition as Dorma’s official Door Hardware Technical Consultant in the Kingdom.” Dorma said the aim of the extended partnership was to provide current and future customers in Saudi Arabia with “specific value-added technical support and project-related services and solutions”. The firm has been operating in the region since the early 1970s, with the wider Dorma Group active for more than a century. It maintains major production plants in Europe, Singapore, Malaysia, China and North and South America, and has an international workforce of around 6500 employees.
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SUPPLIER | NEWS
“Many of our customers realise that 80% of all costs come from running a building, not constructing it”
6500
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News
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Solar panel projects can incorporate sealant products. Laticrete has teamed up with a number of projects.
Sealing the deal Despite issues surrounding quality assurance, cash flow and the environmental impact of adhesives, the regional industry is poised for strong growth over the coming years What was the most significant industry trend to emerge in 2010?
Laith Haboubi: We realised that so many projects had been finished using substandard materials over the past few years. Developers, owners and tenants alike are all currently suffering from the choices made previously. For example, de-bonding tiles, chipped edges on stone installations and waterproofing failures. Abdallah Massaad: With sustainable projects surviving the economic downturn, 2010 signalled a year of hope for the Middle Eastern construction market. Anton van Beek: We serve a number of different end markets, but the most striking trend we see is an increasing need for solutions focused on meeting specific regional needs. Our own business was set up in 2010 to serve the growing needs of Europe, the Middle East and Africa (EMEA). We
The panel Laith Haboubi
Business development director, Mapei UAE, Mapei Stefan Carpentier Middle East area manager, Bostik Abdallah Massaad Director, Laticrete RAK Anton van Beek European general managerpackaging and converting business, The Dow Chemical Company
are finding that having a great and broad portfolio of products is not enough — understanding and then meeting specific market needs is powerful for us and our customers.
How do you predict this will develop in 2011?
LH: The market has undergone a rapid rise to maturity helped by two factors; an increased number of more discerning investors and reduced profit margins for contractors. Reduced profits result in greater care in material selection and installation as people don’t have the margins or resources to be going back over failed work. AM: The New Year will see many shifts in terms of the quality of projects, as well as technology to suit the new reality. AVB: There is no doubt that this trend will continue and that companies that understand this
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TRENDS XXXXXXXX | ADHESIVES | XXXXXXXXXX
“We are making sure we have resources in place to meet the needs for advanced adhesive technologies in industrial applications” will win in the marketplace; as long as they always keep customers in mind. The needs of the EMEA region are growing, and we are making sure we have resources in place to meet these needs for advanced adhesive technologies in industrial applications, as well as markets like food packaging.
What are the primary issues in the industry currently? LH: Costs and cash flow. We find that projects are continuing, but at a much slower pace than they were before.
Stefan Carpentier: The slowdown has allowed consultants, designers and engineers to assess alternative solutions and manufacturers are focusing more on providing these. Sustainability became another key requirement for new projects. Scoring LEED credits or Estidama Pearls takes a solid approach to design and writing specifications accordingly, for example with low-VOC products.
70% The amount of its budget mapei contributes to research and development studies
AM: The primary issue in the construction industry today is the direction it will take in the future. Finance will decide the commercial viability of many projects. AVB: Bigger, better and more dramatic buildings are the norm. This region is setting the pace for some of the most dramatic architecture in the world. However, the primary issue underlying this significant growth is the ability for the construction industry to be able to find a source of secure, sustainable products from reliable suppliers that can deliver consistent quality time after time.
Does the market demand exist to make the research and development (R&D) of sustainable products viable? LH: With many projects requiring LEED or Estidama ratings, there is a positive local. However, R&D of such products is a long-term investment and companies should not expect
short-term returns. Mapei invests more than 70% of its €85 million research and development budget into the development of sustainable or more environmentally-friendly products for more than 10 years. SC: It is part of our mission statement to invest in R&D. Locally, we see specifications gradually changing in favour of eco-friendly and sustainable products. Bostik has a broad view and focuses on the entire lifecycle of a product, from transportation and application on site, to the ease of recycling afterwards. AM: Currently, research and development in sustainable products is not a compulsion; however, very soon there will be no option but to go for sustainable products. The companies investing today for tomorrow’s solution will eventually become the industry leaders.
What are the unique issues of working in this region compared to others?
A stadium project Laticrete partnered with.
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LH: There is a lack of unified standards or building codes, but there have been some positive developments, such as the adoption of ISO 13007 by the Gulf Standards organisation for tile adhesives and grouts. This will go a long way to improving material and application for tile and stone installation. It will also set a
“So many projects had been finished using substandard materials over the past few years”
News
Mapei’s total budget dedicated to research and development in its sector
Laticrete supplied products to Ferrari World.
Anton Van Beek.
Stefan Carpentier.
benchmark for such materials as they are tested to temperatures relevant to the region. SC: The culture here is one of relations and trust, where one has to rely on the other’s knowledge and capability to keep up with the pace of growth. This is different to mature markets, which are frequently underestimated by foreign companies coming here. Additionally, durability and performance requirements for materials aren’t simply the same as in other parts of the world.
Bostik has worked on a number of projects in the region and abroad.
also larger format tiling, particularly in porcelains. These do require different adhesives and installation systems; otherwise, the risk of staining or warping is high.
Abdallah Massaad.
AM: The Middle East has its unique climatic needs and construction products and practices need to be practical in this climate. Laticrete RAK has started local production to develop products exclusively for this region.
Are there any outstanding innovations the industry is focusing on?
LH: We follow trends very closely in order to supply the correct solutions. We are seeing an increase in the use of resin agglomerate (artificial stone) and
Laith Haboubi.
SC: As a manufacturer we anticipate and rethink technologies; there is a clear move away from solvent products. The challenge of innovation is to develop economically-viable alternatives exceeding the performance of older technology and improving user friendliness. The demand for waterbased epoxies is increasing, the use of polysulfide sealants is gradually being reduced and hot melts and MS Polymers are finding their way to the market more and more. AM: Due to the rapid pace of construction, many products need to be lightweight, green and fast setting. Laticrete is working on an energy-saving, ventilated facade system and has produced
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€85m
VOC-free and low-VOC products, and HydroBan waterproofing products, which can actually be tested on the day of application.
Have recent innovations in the industry shifted demand in the adhesives market?
LH: We have seen an increased demand for acoustic systems; rubber or cork and rubber composites installed under tiled or wooden flooring. It’s a very positive innovation, dramatically reducing the sound transmitted between floors. SC: Sustainability of a project is getting a clearer meaning. Projects are designed to be green, not to carry the stamp of a green development but from the perspective of improving health and minimising energy consumption. Specifications on projects for adhesives are getting more stringent, imposing upper limits for volatile components.
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KPF’s new regional director Steven Miller.
Wise words
Having recently joined Abu Dhabi-based Kohn Perdersen Fox (KPF) architecture firm, Steven Miller reveals the firm’s expansion plans and how he intends to put his 46 years’ industry experience to good use How does your new role differ to your experiences?
The role is very similar to the one I held at FX Fowle, but Kohn Pedersen Fox (KPF) has a very wide reach globally so you can approach tasks from a different perspective. My responsibilities cover the Middle East and North Africa.
Have you had experience working overseas in the past?
I’ve worked overseas all of my life. Currently living in Dubai, I find myself on a plane once or twice a week. We have a Doha office and I interact closely with firms in India, as we have a lot of work in the country. Furthermore, we’re very active in Abu Dhabi, having designed Abu Dhabi Airport, which is being tendered in various stages.
You have worked closely with the public sector on a number of projects, is this your preference?
We generally try to work in the private sector, but in the UAE there is very little private work being tendered at present. The problem in the public sector is that they sometimes forget to pay on time, which tends to be an issue throughout the Middle East. In Doha for example, the private sector is wonderful and pays on time, whereas the public sector can be difficult.
How is the Abu Dhabi airport project progressing?
There have been 11,000-plus design sheets
drawn and the project has cost $6.5 billion. We’re in the process of preparing documents for a unique tender process in which the government is breaking the project down into smaller contracts. The firm is reviewing Abu Dhabi airport tenders and if contractors have questions we are there to answer them. Everyone we have looked at so far has had a lot of airport experience. We offer our thoughts on the contractors and check the technical side of the tender bids.
Please tell us about some of the other projects you’re working on.
Another major project of ours is a mixed-use development in Al Bhateen, which is still in the design stage. I’ll be heading to New York soon too because we’re being considered for a new hotel project on Saadiyat Island. In fact, my speciality is in hotel design and urban planning, we’ve also been shortlisted for another project for National Holdings.
Have you identified many opportunities in Qatar on the back of the successful FIFA World Cup 2022 bid? We’re already working on a number of big projects in Doha, including a mixed-use development in the West Bay Area towering 80 storeys high, the company’s just in the process of obtaining the final permit for this. KPF is also working on the International Bank of Doha project, on which enabling works have started. We expect to bring the contractor on board for
this in mid-February. In addition, the firm has been shortlisted on a number of other projects for high-profile clients such as Qatari Diar, Qatar Petroleum and projects in Dohaland. We expect to see a lot of new projects coming up over the next few years.
What are KPF’s expansion plans?
The firm has not yet expanded into Saudi Arabia yet, but I’ve got contacts there and luckily a multiple entry visa so this could be our next step.
Profile Steven Miller is an architect and urban planner with more than 48 years of experience in design, design management and construction administration for planning and architectural projects He is also an experienced real estate investment planner and project manager. Now a resident of the UAE, Miller has worked around the globe, including the MENA region, India, China, Hong Kong, Singapore and Eastern Europe, among other countries. Prior to joining KPF, he held the role of managing director, business development and contracts manager at FXFowle
Did you know? Miller is a long-time fellow of the American Institute of Architects and is recognised for his historic preservation works. He is a past president and current board member of the AIA Continental Europe Chapter, in addition to other roles worldwide. He is also a founder of the AIA’s Middle East chapter, recently launched in the region
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CAREER LADDER | KPF NEW RECRUIT
“The firm is reviewing Abu Dhabi airport tenders and if contractors have questions we are there to answer them”
Budget $ 68 million
Project number MPP2436-U
Project name Qasr Al-Ain Palace Hotel Project
Territory Al Ain Client Tourism Development & Investment Company - TDIC (Abu Dhabi) Email: info@tdic.ae Web: www.tdic.ae Description Construction of Qasr Al-Ain palace hotel.
Budget $ 500 million Remarks This project is in Al Ain. The resort could be even bigger than the Emirates Palace hotel in Abu Dhabi that opened in 2005. Further details of this scheme have not been revealed. South Africa's Northpoint has prepared the concept architecture for the hotel. The local office of KEO International Consultants is acting as the architect, while South Africa's MLC is the cost consultant. Main architect KEO International Consultants (Al Ain) Cost consultant MLC International (Dubai) Project number MPR1343-U
Project name Ritz Carlton Hotel Extension Project Dubai Marina
Territory Dubai Client Al Mulla Group (Dubai) Email: almucons@emirates.net.ae Description Carrying out extension works of Ritz Carlton hotel involving construction of two basement floors, a ground floor and five upper floors.
Period 2012 Remarks This project is at Dubai Marina. The extension will cover a total area of 36,000 square metres and increase the capacity of the hotel by 163 rooms to bring the number of rooms to 301. Work also involves adding 10 private dining rooms to the hotel. Local Khansaheb Civil Engineering has been appointed as the Main contractor. Works have already commenced on the site and will take two years to complete. Main consultant Rice Perry Ellis (Dubai) Main contractor Khansaheb Civil Engineering (Dubai) Project number MPP1176-U
Project name ADNOC Headquarters Complex Project
Territory Abu Dhabi Client Abu Dhabi National Oil Company (ADNOC) Email: info@adnoc.com Web: http://www.adnoc.ae Description Design and construction of a new headquarters complex for ADNOC comprising a 342-metrehigh, 65-storey office tower, podium, basement and underground parking areas, as well as a tunnel connecting the office tower with the underground parking.
Budget $ 490 million Period May 15 2013 Remarks This complex will be located at the intersection of Corniche road and Bainunah street in Abu Dhabi. It will cover a total built-up area of approximately
190,000 square metres and designed by world-class architects and Design consultants. Local/ Belgian Six Construct Abu Dhabi has been appointed as Main contractor to build the headquarters complex. Work will take 36 months to complete. Local Arabtec Construction has been awarded an estimated $60 million contract to build the underground car park, as part of this project. The car park will contain three levels underground over a space of 22,741 square metres, a built-up area of 65,340 square metres and around 1575 parking spaces. The project is situated underneath the public park near ADNOC headquarters and will take two years to complete. Main consultant Halcrow International Partnership (Abu Dhabi) Main architect HOK International (Dubai) Project manager Hill International Ltd. (Dubai) Main contractor Six Construct Ltd. (Abu Dhabi) Main contractor(1) Arabtec Construction L.L.C (Abu Dhabi) Foundations, enabling and piling Contractor Arabian Foundations Engineering L.L.C (Dubai) Project number OPR436-U
Project name Bab Al Bahr Commercial Tower Project
Territory Abu Dhabi Client Al Fahim Group (Dubai) Email: afir@emirates.net.ae Web: www.alfahimrealestate.com Description Construction of Bab Al Bahr commercial tower comprising nine floors, with two levels of underground parking capable of accommodating 600 cars.
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UAE
XXXXXXXX MENA PROJECTS | XXXXXXXXXX | TENDERS
TENDERS
The latest tenders and project updates for developments in MENA
Budget $ 55 million Period 2012 Remarks This project is in Abu Dhabi and will cover a total area of 18,000 square metres, with a total builtup area of almost 70,000 square metres. Local Tourism Development & Investment Company (TDIC) has partnered with the Client to build the first-rate commercial tower. With access to the beachfront and a breathtaking view of Sheikh Zayed Mosque, the tower will be the first of its kind in new Abu Dhabi city. Catering to high-end corporations, the ground floor of the structure will be divided into retail spaces, restaurants and cafes. Each floor has around 3,300 square metres of open space for companies to freely design their offices to fit their business requirements. The building is designed to enforce a tranquil yet progressive work environment. The amazing view of Arabian Gulf on one side combined with the tower's glass exterior will surely instil serenity at a normally busy business setting, while also inviting a culture of openness and transparency internally. Local Ali & Sons Contracting has been appointed as the Main contractor on this scheme. Lebanon's Khatib & Alami is acting as the consultant. Main consultant Khatib & Alami Consulting Engineers (Abu Dhabi) Main contractor Ali & Sons Contracting L.L.C (Abu Dhabi)
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MENA PROJECTS | TENDERS
Project number OPR431-U
Project name Al Ain Convention Centre Project
Territory Al Ain Client Abu Dhabi National Exhibitions Company (ADNEC) Email: adnec@emirates.net.ae Web: http://www.adnec.ae Description Construction of a convention centre, including hotels, offices and serviced apartments in a micro-city connected by walkways and open spaces.
Budget $ 1 billion Period 2012 Remarks This project is in Al Ain and will be developed on 275,000 square metres of land. Selected developers will also develop an existing waterway that will run through the site as part of their drive to create a sustainable environment in the heart of the city. Local Al Faraa General Contracting has been appointed as Main contractor for the first phase of this development, which involves the extension of an existing conference hall onsite. Construction of Phase 1 has been completed. It is understood that Phase 2 is now in design stage and will be completed in the second half of 2011. Design consultant Shankland Cox Ltd. (Al Ain) Project manager RMJM (Abu Dhabi) Main contractor Al Faraa General Contracting Company L.L.C (Al Ain) Project number OPP332-U
Project name Noor-1 Solar Power Plant Project
Territory Abu Dhabi Client Abu Dhabi Future Energy Company (MASDAR) Web: www.masdaruae.com Description Engineering, procurement and construction (EPC) contract to build Noor-1 solar power plant with capacity of 100
megawatts (MW). Remarks This project is in Abu Dhabi. The plant will be run on Photovoltaic technology. The scheme may be developed as an Independent Power Project (IPP). A site for the plant is yet to be decided. The Client owns 60% of this project, while French energy giant Total and Spain's Abengoa share the rest equally. Client will soon invite expressions of interest for the scheme that will be launched on build, own and operate (BOO) basis. Feasibility study is currently underway. Once this is complete, the Client will go out to the market to invite bids for the EPC contract along with operation, management and maintenance. JORDAN Project number OPP330-J
Project name St. Regis Amman Hotel Project
Territory Jordan Client Al Maabar International Investments (Abu Dhabi) Email: info@almaabar.com Web: www.almaabar.com Description Construction of St. Regis Amman Hotel comprising (270) guestrooms, including (91) suites, four restaurants, a cafe, destination bar, pool and pool bar, fitness centre and signature spa.
Budget $ 300 million Period 2014 Remarks This project is in Jordan. The development will be made up of two towers, one to include St. Regis and the other to be a highend brand apartment facility. The mixed-use scheme will also include extensive boutiques. Client has signed an agreement with Starwood Hotels & Resorts to operate and manage the hotel. Around 50% to 55% of the project's investment
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will be financed by local projects from both Jordan and UAE, mainly Abu Dhabi. Construction work is expected to commence in May 2011. SAUDI ARABIA Project number ZPR214-SA
Project name Industrial Gate City Mixed-use Development Project
Territory Saudi Arabia Client Mawten Real Estate Company (Saudi Arabia) Email: info@mawten.com.sa Web: http://www.mawten.com.sa Description Development of Industrial Gate City mixed-use scheme comprising warehouses, residential areas, commercial centres, hotels, medical services and banks, including infrastructure such as modern roads, water and sewage systems, power network and a water treatment plant.
Budget $ 295 million Remarks This project will be located close to the present Riyadh Industrial City in Saudi Arabia and cover an area of 6.5 million square metres. The scheme is part of Saudi Arabia's strategy to involve the private sector in order to achieve economic development and strengthen its industries. It is understood that the project is currently under design. This is expected to be completed in first quarter of 2011. Invitation to bid (ITB) for the main construction contract is expected to be issued in first half of 2011. Project number MPP2410-SA
Project name Yanbu - Madinah Water Transmission System Project
Territory Saudi Arabia
Client Saline Water Conversion Corporation - SWCC (Saudi Arabia) Email: info@swcc.gov.sa Web: www.swcc.gov.sa Description Construction of a water transmission system between Yanbu and Madinah.
Budget $ 1 billion Remarks This project is in Saudi Arabia. It covers supply of materials and installation of Phase 3 of the transmission system. Companies have been invited to bid by November 30, 2010 for the estimated $693 million pipe laying and construction contract. Bidders can choose to carry out all or a combination of three packages. The first package involves construction of 184.7 kilometres of 76-inch pipeline; a 16.8-kilometre, 48-inch pipeline; a 56.9-kilometre, 36-inch pipeline; a 2.7-kilometre, 60-inch pipeline; a 1.3-kilometre, 24-inch pipeline; and a 15.4-kilometre, 24-inch pipeline. The second contract covers two feeder lines: the 93.8-kilometre Madinah Hanakiyah Feeder Line and the 316.8-kilometre Madinah Mahd Feeder Line. The third package is for construction, supply and installation of all equipment and four pumping stations, including the power supply, together with control and communication systems for the entire project. Companies planning to bid in a consortium must receive approval from the Client before submitting their proposals. Austriabased ILF Consulting Engineers is advising the Client on this scheme. Main consultant ILF Consulting Engineers (Saudi Arabia) Project number MPP1185-SA
Project name EVA/LDPE Plant Project - Jubail Petrochemicals Complex
Territory Saudi Arabia
Budget $ 800 million Period 2013 Remarks This project will be developed at Jubail Petrochemicals Complex in Saudi Arabia. Client has signed a joint venture agreement with South Korea's Hanwha Chemical to implement the scheme. South Korea's GS Engineering & Construction Corporation has been appointed as the EPC contractor. The new plant is slated to be operational in second quarter of 2013. Project manager WorleyParsons (Saudi Arabia) Main contractor GS Engineering & Construction Company (Saudi Arabia)
QATAR
Project number ZPR215-Q
Project name Doha Mall Development Project
Territory Qatar Client Al-Futtaim Group Real Estate (Dubai) Email: af.realestate@alfuttaim.ae Web: http://www.afrealestate.com Description Development of Doha Mall comprising a full retail centre, an entertainment park and 2 hotels.
Budget $ 1.6 billion Period 2015 Remarks This project involves development of the largest complex in Doha, on the northern highway linking the airport with the Qatar Bahrain causeway. The scheme will
cover an area of 433,000 square metres and is being implemented in joint venture with Qatar Islamic Bank, Aqar Real Estate Investments Company and a private company. Construction work is expected to commence in the first quarter of 2011. Phase 1 is expected to be completed in the first quarter of 2012.
BAHRAIN
Project number OPR443-B
Project name Headquarters Building Construction Project - Bahrain Bay
Territory Bahrain Client Al Baraka Banking Group (Saudi Arabia) Web: www.albaraka.com Description Construction of headquarters building in Bahrain Bay comprising two office towers consisting of approximately nine levels above ground plus a mezzanine level, in addition to four basement levels for car park and facilities.
Budget $ 55 million Remarks This project is in Bahrain. The gross floor area will be 22,221 square metres, while the gross development area is 38,540 square metres for the entire scheme of total 14 floors. The two towers will be joined by a podium and ground plaza level, while the upper floors will be linked by a bridge way. On top of the podium complex, the building will be divided into two office towers, one for lease and the other as the headquarters of the bank. The podium level will consist of banking, retail and VIP reception area. UAE-based Arabtec Holding has been appointed as the Main
contractor on this development. Main contractor Arabtec Holding PJSC (Dubai)
LEBANON
Project number ZPR148-LE
Project name Abraj Jdeideh Residential Towers Project
Territory Lebanon Client SAYFCO Holding Company (Lebanon) Email: mail@sayfco.com Web: www.sayfco.com Description Development of five residential towers comprising 15-floors each of (270) apartments, children's playground, basketball/ tennis courts and parking space. Period February 15 2012 Remarks This project will be located at Abraj Jdeideh in Lebanon. Local Sarkis Azadian Architects has been appointed as the main architect, while the Client itself is acting as the Main contractor on this scheme. It is understood that construction work is progressing and will be completed in February 2012. Main architect Sarkis Azadian Architects (Lebanon) Main contractor SAYFCO Holding Company (Lebanon)
EGYPT
Project number ZPR121-E
Project name Canal Village Resort Development Project - Port Ghalib
Territory Egypt Client Rooya Group (Egypt) Email: info@rooyagroup.com Web: www.rooyagroup.com Description Development of canal village resort, including (1,500) apartments, restaurants, cafes, (7) swimming pools, playground, retail outlets, beach sports, fitness centre
and cinema. Period December 15 2011 Remarks This project will be located at Port Ghalib in Marsa Alam and cover an area of 1.3 million square metres. It is understood that the scheme is currently in design phase. US’ Sasaki Associates and South Africa’s Northpoint have been appointed as the project architect on this scheme. US’ Turner International is the Project manager consultant (PMC). The Client itself is acting as the Main contractor on this scheme. Construction work is progressing as per schedule. Main architect Sasaki Associates Inc. (USA) Project manager Turner Construction International (Egypt) Main architect (1) Northpoint (South Africa) Main contractor Rooya Group (Egypt) IRAQ Project number MPP2433-IQ
Project name Cement Plant Project-40
Territory Iraq Client MerchantBridge & Company Ltd. (Iraq) Web: www.mbih.com Description Construction of a green-field cement plant with capacity of around 2 million tonnes a year. Remarks This new cement plant will be built close to another facility currently under rehabilitation at Karbala in Iraq. The project is being implemented in joint venture with France's Lafarge. Land has been allocated by the Iraqi government. Engineering work is expected to commence this year.
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MENA PROJECTS | TENDERS
Description Engineering, procurement and construction (EPC) contract to build an ethylene vinyl acetate (EVA) and low-density polyethylene (LDPE) plant with capacity of 200,000 tonnes a year (t/y).
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DIARY GLOBAL TRENDS
$30b The Royal Commission for Jubail and Yanbu intends to establish 16 mega projects valued at up to US $30 billion, with construction of these already underway, it was reported last month.
$24b
International Buildmat International Construction Trade Fair 2011 India: February 3-6
Exhibited at the event will be a comprehensive display of building materials, components and supporting services, providing opportunities for those in the supply industry to showcase their latest products and technologies.
Building Materials Expo India: February 11-13
The show is expected to provide a platform for people from the building and construction materials industry in India to unite. According to the organiser, Prompt Publication and Trade Fairs, India’s building industry is rapidly growing, with many projects adhering to international building standards.
State-backed power supplier Saudi Electricity Company told local media it executed $24 billion worth of projects last year as the private and public sectors aim to meet soaring domestic power demands.
One of the leading trade fars for the building and construction industry in Finland, the three-day exhibition will take place at the Tampereen Messu Centre.
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The event has been dubbed the largest exhibition for the building, cement and concrete industry in Russia. Organised by MVK International Exhibition Company, the exhibition will be held at the EcoCentre Sokolniki, in Moscow.
The number of new Australian businesses registered in the UAE during 2010, according to the Australian Business Council in Dubai, which said many firms were looking for opportunities in Abu Dhabi’s construction sector in particular.
6600km Saudi Arabia is expected to construct 6600km of new roads in 2011, costing $3 billion, as the government boosts its budgets for transportation and communication by 5% to $6.72 billion.
ASTA Constructor Finland: February 11-13
Betonex Russia: February 14-17
MarminStone Greece: February 17-20
The 35th International Fair for Marble, Stones, Minerals, Machinery and Equipment will be held at the Thessaloniki International Exhibition Centre. It is expected to host companies from home and abroad.
Buildex Vancouver Canada: February 23-24
The Buildex brand of expositions are annual conferences that take place globally and encompass the commercial, institutional, governmental and residential property industries, as well as the facilities management sector.
Australian Construction Equipment Expo Melbourne: February 24-26
Held Biennially in Victoria, the show is said to be the largest for the earthmoving, civil contracting and quarrying industries in Australia. It also attracts visitors from the demolition, farming, forestry, mining, road construction, hire and rental, and government sectors.
MENA Facades Design and Engineering 2011 Dubai: February 6-9
Successful facade design and engineering is paramount to building aesthetics, reduction in energy consumption, acoustics, indoor air quality and the protection of the building. With a multitude of new developments underway across the region, the demand to stay up-to-date with advancements in the facade design space couldn’t be more prevalent, said organiser IQPC.
Machinex Arabia (machinery and equipment exhibition) Jeddah: February 20-23
Machinex Arabia is expected to attract thousands of visitors from around the globe, including professionals related to machine building, construction equipment, tool and mould-making, fixture design, steal and light metal construction, as well as other areas.
Metal & Steel Exhibition Cairo: February 26-28
Claiming to be the Middle East’s largest trade show for metal working, Metal & Steel 2011 is expected to bring together leading industry names from the GCC and abroad.
Vertical Transportation Saudi Arabia Riyadh: February 27-March 1
Significant investment in the built environment has propelled the Saudi Arabia to regional poll position in terms of project spend, according to event organiser IQPC. Investment in sustainable smart buildings is predicted to hit US $39 billion in eight years, while long-term government strategic development plans demand adherence to sustainable building construction and performance codes.
The Big 5 Saudi Arabia Jeddah: February 27-March 2
Following the success of the United Arab Emirates instalment, event organiser Daily Mail Group Events has high hopes for The Big 5 Saudi Arabia. The four-day event will showcase a wide range of construction products and services. It is expected to attract architects, engineers, contractors, consultants, developers, project managers and other construction professionals from the GCC as well as from further affield.
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DIARY | INDUSTRY EVENTS
FEBRUARY
TEA BREAK | INDUSTRY COMMENT
“The way in which a building is modified can vary enormously from property to property” Katie McGregor, BREEAM manager at BRE Global
Environment Power Systems
Sander Trestain VP – technical
Buildings can easily and adequately be retrofitted with photovoltaic (PV) solar installations, according to Environment Power Systems vice president – technical Sander Trestain. “What’s more, once built, solar panel maintenance is extremely cheap; there are no moving parts or fuel, and typical running costs only amount to 1% of the system price,” he adds. However, AT Kearney Dubai principal Christian von Tschirschky explains that while 90% of installations in Germany have been retrofitted, integrating solar solutions from the drawing stage generally costs less.
Vidyuth Kini Urimat
Your Shout
This month we asked experts from the region and abroad to offer advice on retrofitting an existing building for significant savings Steven Schoenknecht
Phil Clowes
As US-based construction expert Steven Schoenknecht says, the greenest building is the one that is already built. If you’ve just started counting your carbon footprint, you’re certainly at an advantage if the structure already exists and those constructionbased emissions are history. However, now it’s time to start renovating to transform the building into a sustainable icon, often many green solutions can be added at no additional costs.
Adding to Steven’s point, industry buff Phil Clowes handily offers some examples of costeffective green retrofit ideas, including installing olefin-based window coverings made from recycled soda bottles, which are “usually the same price as other fibreglass or polyester products”. Clowes, an advisor on window treatments at AmeriZona Products, also recommends replacing light bulbs with energyefficient alternatives.
Steven Schoenknecht Construction expert
Advisor Amerizona Products
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PRP Architects
Andrew Mellor Group director
Our next tip relates to reducing operating costs specifically in hotels through clever retrofitting techniques. Many existing hotels are facing the challenge of retrofitting as the region’s municipalities set sustainable targets for the tourism sector. Andrew Mellor, group director at PRP Architects, has a systematic approach to upgrading existing properties. “Our first steps would be to examine the soft measures that can be taken before any disruptive construction work takes place. These soft measures include the education of management and the changing of fixtures and fittings to more environmentally-friendly alternatives, such as taps, light bulbs and appliances in the rooms.”
Sanitary savings can be significant if the right products are installed, according to Urimat’s Vidyuth Kini. The supplier recently launched its latest waterless urinal line, Urimat Ecocompact. An ideal and sustainable alternative to traditional water-flushed urinals, the model does not require electricity, water or chemicals and can be installed easily anywhere, says Kini. Furthermore, there is no additional pipe work for the water inlet and cistern so you can simply remove the old unit, turn off the pipe work and use the existing drain – making it ideal for retrofits like ‘plug and play’. Stromo
Nici Pickering Design manager
Dubbed “the simple way to save energy” by UK-based design manager Nici Pickering, air sealing is a cheap and effective means of keeping heat in or out, depending on the time of year. “Hightech solutions to reducing energy and carbon emissions in building are worthwhile, but not before simple fabric improvements.”
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