The Big Project by Big Project Middle East

OCTOBER 2011

PLUS Al jaber project update cityscape roundup onsite at kizad

interview with damac md ziad el chaar ARCHITECTURE n ENGINEERING n CONSTRUCTION n PMV n POWER

After the gold rush In a special edition to mark the third anniversary of the global economic crash, The Big Project reports on the legacy of boom and bust

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Head Office - Ras Al Khaimah, UAE +971 7 2216 116 / 117 / 118 Branches in Jeddah, Riyadh & Dammam Member of the Al Rajhi Holding

OCTOBER

Contents REGULARS

Editor’s letter 5

26 Onsite

News bulletin 9

The Big Project goes on a guided tour of Kizad, Abu Dhabi, with its construction manager and CEO

News in focus 22 The criteria for project partners in Abu Dhabi’s Intelligent Traffic Systems

Talk 18 DAMAC MD Ziad Al Chaar on how the developer defied the downturn

Market explorer 33

26 48

Making the most of opportunities in the world’s second largest construction export industry; Turkey

News analysis 48 Ten years of CityScape

Trends 65 Six architects debate if anyone is to blame for the frantic pace of the boom years

Tenders 87 Diary 91

FEATURES

Your shout 92

44 Project update How Al Jaber and Partners’ Qatar project with Shell achieved 19 million hours with zero LTI

52 Cover: After the gold rush Three years after the fall of Lehman Brothers, analysists and experts reflect on the future of the global economy

58 Case study: Auctions World Wide Auctions and Ritchie Brothers give their tips for buying equipment at auction

63 Comment: PMV procurement Mike Vorster explains the economics of PMV acquisition

83 Supplier hotseat Unipods: an innovative way to achieve safe and speedy fitout

84 Career ladder Dulsco’s new MD Prakash Mahadalkar

www.thebigprojectme.com | 4

EDITOR’S COMMENT

Publisher Dominic De Sousa Chief operations officer Nadeem Hood

“Mixed feelings”

hree years since the fall of one of America’s largest investment banks the world economy is still in turmoil. Ongoing crises in the Eurozone and US still affect the region and, compounded with the recent political instability, it has been a turbulent 12 months to say the least. When HH Sheikh Mohammed bin Rashid Al Maktoum declared “Dubai is well” at the inauguration of the new metro line last month, The Big Project began to investigate. This issue we bring you a series of features on the legacy of boom and bust and what the next twelve months could possible hold for the construction industry. The results of the MacDonald and Co salary survey, released last month, show salaries are stable; the average bonus increased by 4.4% and an additional 5% of respondents received an increase on their base salary over the last year. Crucially, only 12% expect economic activity to decrease over the coming year, while 48% – up from 44% last year – expect it to remain unchanged. In this issue, Ziad El Chaar, managing director at DAMAC – a developer that in the face of economic disaster still handed over more projects that its two closest competitors combined – reveals his secrets for success and talks about the next 50 developments in the pipeline and the launch of DAMAC Suites and Spa. We also take a tour of Kizad, Abu Dhabi’s most important infrastructure project that will be seminal in the diversi-

Associate publisher Liam Williams liam@cpidubai.com TEL: +971 (0)4 440 9158 Director business development Alex Bendiouis alex@cpidubai.com TEL: +971 (0)4 440 9154 GSM: +971 (0)50 458 9204

fication the Emirate’s economy by 2030. But not all the news is good; last month CitiGroup reported US $170bn in contract delays and cancellations regionally and according to experts there are still flaws in the efficiency of the industry that will require address if the sector is to recover over the coming year. One interviewee said adoption of the design-build approach and integrated project delivery could improve efficiency by up to 30%. In addition, CityScape, widely seen as an indicator of strength in the property industry, saw another quiet edition when it opened its doors last month in Dubai. Exhibitors and visitors were optimistic, yet many reported project financing is still problematic. Marking the show’s tenth anniversary this year, director Rohan Marwaha spoke to The Big Project about both its and the industry’s evolution. The same feelings were echoed when six prominent architects from the American Institute of Architecture, Broadway Malyan and Woods Bagot, gathered for our round table discussion to debate the design legacy of the last decade and ask if anybody can be blamed for the frantic pace of development that helped create a vortex of debt and unsustainable ambition. If one thing has been clear, it is that regardless of what happens in the UAE, strong markets in Saudi Arabia and Qatar will buoy the industry for the next decade and provide plenty of opportunity for those who survived the downturn.

Melanie Mingas Editor

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Editor Melanie Mingas melanie@cpidubai.com TEL: +971 (0)4 440 9117 GSM: +971 (0)56 758 7834 Business development manager Rhiannon Downie rhiannon@cpidubai.com TEL: +971 (0)4 440 9152 GSM: +971 (0)50 554 0116 Business development manager Nayab Rafiq nayab@cpidubai.com TEL: +971 (0)4 440 9153 GSM: +971 (0)55 542 6032 Senior Sales Manager Tariq Ali Meer tariq@cpidubai.com TEL: +971 (0)4 440 9150 GSM: +971 (0)50 458 9044 Designer/Photographer Marlou Delaben Photographer Cris Mejorada Webmasters Troy Maagma 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 © 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.

DSK wins MEP mosque contract Drake and Scull branch latest to secure deal The Kuwaiti division of Drake and Scull PJSC (DSK) has been awarded a contract to coordinate and execute complete MEP works for an administrative block and mosque for a public sector client in Kuwait. The AED 73 million project, to be completed in two years, is hoped to be the first in a string of new contracts for the company in Kuwait. “As one of the GCC’s most dynamic construction markets, Kuwait is an excellent platform for expanding DSI’s business,” said CEO Khaldoun Tabari. “The country is currently undertaking a US$ 104 billion, four-year economic stimulus plan which includes major infrastructure projects worth over USD 20 billion in contract

Road projects total $142 billion in Gulf UAE “leading the way” Huge opportunities to participate in the region’s road infrastructure projects will be announced across the Gulf, according to regional market analysts Ventures Middle East.

revenue. Kuwait will also launch various residential and commercial developments to meet the needs of its rapidly growing population,” Tabari added. Kuwait’s domestic construction sector is set to post growth of 2.4% this year, taking its value to US$ 2.4 billion. DSI PJSC acquired a 75% stake in DSK in December 2009, as part of what MD Mark Andrews called an “aggressive expansion plan” executed across Kuwait, Qatar and Saudi Arabia. “DSK was chosen for its excellent reputation and its in-depth expertise of the local market” Andrews added. Aside from Kuwait, DSI PJSC has secured several prime projects this year in Oman, Egypt, UAE, Qatar, Saudi Arabia and other key Asian and European markets collectively worth almost AED 3.6 billion as of September 2011. The company expects to proceed in quarter four with an elevated momentum while bidding for projects in the MENA and Asian The UAE is “leading the way” in the US$142 billion projects currently underway in the region: with Abu Dhabi’s US$25 billion Surface Transport Master Plan (STMP), the UAE’s US$58 billion worth of road and bridge projects represents almost 40 % of the regional total. The statement comes in spite of ongoing delays to the 3.1km Al Salam Street tunnel in Abu Dhabi. Saudi Arabia contributes $48 billion dollars with its planned and current projects and Qatar has road projects valued at $17billion as part of its infrastructure plans ahead of the 2022 World Cup. Despite lower investment, Kuwait is predicted to be one of the most active markets over the coming years with $9.4 billion projects in the pipeline, including the Jaber Al Ahmed Al Sabah Causeway. Oman’s projects total 5.5% of the regional value at $8 billion; a further $2 billion worth of schemes are at various stages in Bahrain. Yet the UN has said the investments must also increase safety on the Gulf’s roads. The exhibition, to be held in December is also supported by Dubai Police.

Turn to page 22 for an interview with Abu Dhabi Municipality ‘s Majed Abed Al Kathiri on implementing safety systems on new road developments. Gulf Traffic

regions through its MEP, civil and water and power divisions. It was also announced last month that Drake And Scull Water and Power (DSWP) LLC has been awarded a contract worth AED 75 million for supply, erection, installation, testing and commissioning of the mechanical, electrical and instrumentation works for two treated sewerage effluent pumping stations, one bypass station and the associated infrastructure works in Al Ain, UAE. Mark Andrews DSI MD

Halcrow to be acquired by CH2M HILL CH2M HILL to buy 100% Halcrow capital An agreement has been signed by the board of Halcrow Group for 100% of Halcrow’s issued and yet to be issued capital to be bought by CH2M HILL. In a statement issued last month it was said the deal is expected to close November 2011. “The board’s decision to approach CH2M HILL to discuss the sale of Halcrow is the culmination of a business relationship going back many years,” Halcrow CE Peter Gammie. “We have worked together on many occasions and have become very much aware of each other’s strengths and working practices. “The consolidation, which reflects an increasing trend in our industry, will create a very significant value proposition for clients. We are very complementary in terms of our skills and our markets, so where we share geographies we are reinforcing one another rather than duplicating,” Gammie continued. Projects the two firms have worked on in the past include the Thames Tideway and reconstruction work on Iraq’s water infrastructure.

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NEWS | REGIONAL NEWS

NEWS BULLETIN

NEWS | REGIONAL NEWS

Cornerstone ceremony held for Iraq’s first five star hotel Project scheduled for handover Q3 2013 A cornerstone ceremony for a “flagship project” by Range Hospitality, has been held in Karbala, Iraq. Range VC Mohammed Asaria and senior officials from the Iraqi government were joined by more than 100 people at the ceremony on September 7 at the Al Rawdatain Residences. Hani Abood Al Yasari, Member of the Karbala Governor Council and Chief Liaison for Municipality of Karbala; Sheikh Ali Zuhair, senior member of the Karbala Governor Council; Ali Karim Al Jarrah, head of community relations for Imam Hussain Shrine and Ibrahim Al Daaysi, Range Hospitality board member, placed cornerstones of the first five star hotel and residences in the Holy City of Karbala. Al Rawdatain Residences by Shaza is a 65,000 sqm (approx), G+12 hospitality development, located 1 kilometre from the Holy Shrines of Imam Hussain (A.S) and Hazrat Abbas (A.S). “We are pleased to announce that with the continued support of our stakeholders,

construction continues to advance,” said CEO Munaf Ali at the ceremony. “Initially, significant dewatering works were needed due to the water table being only 60cm below ground level. Only thereafter could site excavation work commence. “Across the site, excavation is now complete. Over 6 metres in depth of earth has been excavated. The foundation works have started and the gravel bed is being laid,” he added. Construction began in Q2 2011 and “steady progress” has been made since according to Range, who say handover is due Q3 2013. Similar projects are also being launched by Range in Najaf and the company – which operates in the UAE, UK, Kuwait, Pakistan Bahrain – pledged to continue donating 20% of annual profits to charity. “Our project will add to the confidence level of other international firms to consider Iraq as one of the most lucrative markets in the region for investment purposes.

“Take action now” Singapore conference calls for immediate improvements in green standards

Dr John Keung.

10 | www.thebigprojectme.com

“Take action now” was the message given by Singapore’s Building and Construction Authority at its annual International Green Building Conference, held last month. Association CEO Dr John Keung told conference delegates at the event that the need to adopt greener building practices is both “critical... and urgent”. “For this very reason, the intention behind IGBC is to enable industry practitioners to take action, not just sometime in the future, but now,” Keung added. Attended by Dr Arab Hoballah, chief of the sustainable consumption and production unit at the United Nations Environmental Programme (UNEP), Craig Allen from the International Trade Commission for the US Department of Commerce and academics from across Asia, the event welcomed 8000 experts, professionals and policy makers from

“The continued success of our project will definitely create a positive impact on the perception of the business environment in Iraq,” Ali added.

More than 100 people attended on September 7.

over 30 countries. Highlights included announcements of green incentives such as the pilot scheme to provide loans for building owners and energy services companies, to carry out energy retrofits, announced by Minister of State Tan Chuan-Jin. Conference delegates also saw the launch of an extended green mark, which will see Singapore Building and Construction Authority (BCA) rate restaurants on utilities usage, IEQ and “sustainable” management. McDonald’s at Jurong Central Park, Singapore, was the first restaurant to be certified in Asia, with Brewerkz American Diner receiving green mark certification. The event also included the tropical architecture design competition, judged by four architecture and sustainability specialists, including Tai Lee Siang, Singapore Green Building Council president. Adrian Lo, 26, from the University of Hong Kong, won the competition for his design philosophy “Archiotope” - the idea of viewing architecture as an extension of its natural setting.

NEWS | REGIONAL NEWS

$104b value of Kuwait’s four year economic stimulus plan

Floating power barge for Bahrain Joint venture company formed to deliver project A new floating power barge is to be engineered in Bahrain to be used for a “broad range of power-generation requirements” including the provision of temporary power supplies on construction projects. The innovation is the product of a joint venture between the British Centrax Ltd and ship manufacturer ASRY. The TPB125 Power Barge can be positioned

in ports, on rivers or in sheltered coastal locations. Running on two Centrax packaged Trent 60 generator sets, producing a total of 125MW, the solution can be used during the construction phase of land-based coastal power stations in addition to enabling plant operators to sell power well in advance of the new plant’s commissioning. The barge also ensures continuity of power supplies during major outages at existing power plants near estuaries, rivers or coastal locations and can be used to provide power for emergency humanitarian needs. “This unique project combines the wellproven capabilities of Centrax as a leading packager with the most advanced aero-derivative gas turbine available today, providing a floating power station that can be positioned rapidly wherever it is needed at coastal or river locations around the world,” said Centrax director Guy West. Advantages to using the generators include

POWER BARGE

high power density and small footprint, easy and rapid transportation and the ability to run at full power within 10 minutes of a cold start. The TPB125 Power Barge at 82m in length, 28m in width and with a draft of just 4.5m, allows for easy positioning close to the shore line with minimal on-shore preparations Power Barge 125 is designed with high cyclic life to meet daily peaking requirements. The vessel’s double-skin fuel and oil tanks, low emissions and low noise (80dBA at one metre) also ensure highest environmental standards. “This system offers operators fast delivery of power where and when they need it, along with beneficial environmental performance. Delivering 125MW of power in simple cycle, the two Trent 60 packages on board set industry-leading standards for fuel economy and cost savings,” West added.

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NEWS | REGIONAL NEWS

Fujairah mall on track LEED Gold certification bid and over one million accident free hours on site recorded Majid Al Futtaim Properties is celebrating the news that its AED 400 million Fujairah City Centre mall is “on target” for its 2012 opening, with handover for tenant fit out due two months ahead of schedule. Developed in collaboration with the government-owned Fujairah Investment Establishment, over one million man hours on site have been achieved without lost time to incidents or accidents across the 1100 strong workforce. In addition, the development is now aiming for LEED Gold certification, under the US Green Building Council’s sustainability rating scheme. The development’s roof and steel structure

$142b The value of road development and construction projects in the UAE 12 | www.thebigprojectme.com

are fully complete and more than 90% of shop leases have been signed. Khansaheb Civil Engineering is the named contractor. “Fujairah City Centre will provide a boost to the underserviced retail landscape in Fujairah by providing a high quality and unique shopping and entertainment experience for the growing community,” said asset director Yousif Al Ali. “We are proud of the advancements to the mall’s leasing, construction and overall progress to-date. “It’s a positive reflection of Majid Al Futtaim Properties’ commitment to best practices and the industry’s interest in Fujairah as

an emerging retail market. Looking forward to 2012, Fujairah City Centre will redefine the shopping and entertainment experience in the Emirate,” Ali continued. The official ground breaking ceremony was held in April of this year by crown prince H.H. Sheikh Mohammed bin Hamad Mohammed Al Sharqi. According to Majid Al Futtaim, key milestones achieved include installation of underground drainage, progression of MEP works and completion of a dedicated electrical substation, on programme to enable the Federal Electricity and Water Association (FEWA) to supply power by December.

“Our project will add to the confidence level of other international firms to consider Iraq as one of the most lucrative markets in the region for investment purposes”

CityScape awards - The winners

Commercial/ mixed use- built

Capital Gate by RMJM

Arab Spring’s positive effect on region

‘Central Park’ unveiled

DIFC development 75% complete The centrepiece of a 195 square metre exhibitor pavilion, Deyaar Development’s joint venture project with Dubai Properties Group, Central Park, received a positive response at CityScape. The development, which is 75% complete, comprises a 45-storey, 877,000 square feet commercial tower and a 47-storey, 558,000 square feet residential tower with 426 units, in addition to retail outlets. “As Central Park nears completion, the development stands out among the many high-quality new projects in the DIFC district for successfully meeting the evolving needs of businesses and residents alike,” said Deyaar CEO Saeed Al Qatami. “Combining premium commercial and exquisite residential spaces, Central Park is an outstanding high-value investment opportunity from two of the UAE’s most respected developers,” Al Qatami added.

Nakheel unveils new project

Developer expects “very active” Q4 Palm developer Nakheel unveiled a new 102 beachfront townhouse development on its Palm Jumeirah. The first of a string of expected new projects over the “next few years”, chairman Ali Rashid

Commercial/ mixed use - future

Fusionopolis 4 by Andrew Bromberg Community - built

Run Run Shaw Creative Media Centre by Leigh & Orange Limited

India and China to bring world economy out of recession.

Community - future

MacDonald and Company’s annual salary survey has revealed that 76% of professionals in the region’s property sector anticipate the Arab Spring will have a positive impact. “The result is quite interesting, because the unrest has upset business, projects have stopped, it has caused redundancies, but looking towards the longer term, there is positive sentiment” said director Ben Waddilove. Adding that Libya in particular could begin rebuilding in the next 12 months, he said the major opportunities will lie in the construction of new a airport and hotels. “I would say in reality things are going to stay fairly stable. If the oil price suddenly goes down we are in trouble, but I don’t think it’s likely. So long as China and India keep on consuming they are probably going to bring the world economy out of recession. “We don’t know what will happen in the Eurozone; if some French banks go down, we’re not immune to the impact here and it could affect the oil price,” Waddilove added. Now in its fifth year, the survey also found that only 12% of respondents expect economic activity in the region to decrease over the next year. The average salary is 37,965 AED, down around 1%. Of 21% of respondents who were made redundant over the last year, 78% have already found a job; the same figures for 2010 stood at 24% and 69% respectively.

Leisure - built

Visit www.thebigprojectme.com for the full 2011 survey results. Lootah said the company expects a”very active last quarter” in 2011. “We are focusing on delivering units and services to existing investors and residents,” Lootah said. “Nakheel is focused on the delivery of a number of projects that are nearing completion and the senior management team is actively engaged in ensuring timely delivery of these units to the satisfaction of stakeholders,” he continued.

Diplomatic Quarter, Celebration Hall - KSA by Godwin Austen Johnson Raif Dinckok Cultural Center by EAA-Emre Arolat Architects Leisure - future

Pazhou Exhibition Hotel by Andrew Bromberg - AEDAS Ltd. Residential - built

Secret House by Dr. Nasser Abulhasan - AGi architects Residential - future

Mangrove Elite Residence by BEAD Architects & Engineers Tourism, travel and transport- built

Traditional Suq in Shindagha by Architectural Heritage Department Dubai Municipality Tourism, travel and transportfuture

D HOTEL by Sanjay Puri of Sanjay Puri Architects Pvt. Ltd. Young architect

Naji Muneer Mahmoud Rejuvenation Refuge Cultural heritage award

Restoration of Hatta Mosque by Architectural Heritage Department Dubai Municipality Islamic architecture award

Eco Park Musolla, Setia Alam by ONG & ONG Pte. Ltd. Masterplanning award

Baku White City by ADEC Azerbaijan Development Company Environmental award

Bayer Material Science Private Limited by Sankalpan Architects Pvt. Ltd. Overall project of the year award

Capital Gate by RMJM- Robert Matthew, Johnson-Marshall & Partners

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NEWS | CITYSCAPE GLOBAL

HH Sheikh Mansour bin Mohammed bin Rashid Al Maktoum visited CityScape on day three

NEWS | ONLINE NEWS

Best of ONLINE

Emirates Steel release phase three expansion ITB 3 million MTPA to rise further Emirate Steel has announced the beginning of phase three of its expansion project, with an invitation to bid (ITB). The producer, the largest of integrated steel in the UAE, will award the contracts by December 2011. Having already completed the first two phases in the last five years, the third will comprise a steel melting plant and hot rolled coil (HRC) mill and ancillaries. The HRC mill will primarily service GCC demand across a range of downstream segments, including: pipe producers; cold rolling producers of galvanized coil and coated sheeting products; boiler, tank and pressure vessel producers; and structural steel fabricators. No budget has been announced for the next phase, however the combined value of phases

ESI Panoramic

one and two is reported to have reached AED 9 billion. That program consisted of new rolling mills, steel manufacturing and direct reduction plants, together with a heavy and jumbo sections mill, due to come on stream by the end of the year, supported by Emiratization. “We succeeded in implementing the first two phases of the project relying on our national teams,” said chairman HE Engineer Suhail Mubarak Musallam Athaeeth Al Ameri. “Their remarkable talents have contributed to the process of lifting our national industries to higher levels. As such, we have managed to enhance the capabilities of our UAE nationals in technical areas through the development of a number of training and vocational programs offered by highly-reputed international centres and by local educational institutions,” he continued, adding Emiratization is one of the company’s “highest priorities”. The first phases increased rolling output capacity from 650,000 metric tons per annum (MTPA) to approximately 3 million at present. Phase three is expected to be completed within 30 months from contract award, with commercial production of HRC anticipated in mid-2014, adding an additional production capacity of 1.6 million MTPA of product. According to Bin Athaeeth, the project has attracted significant interest from various internationally-renowned bidders. Commenting on the expansion’s role in Abu Dhabi 2030, he added:“We are looking at real investment opportunities.”

HOK appointed to Msheireb Downtown phase four Lead consultant for $5.5b project

Phase four of Doha’s mixed use downtown development project Msheireb, will be lead by Hellmuth, Obata + Kassabaum (HOK). The global architecture, urban design and planning firm has been appointed lead consultant on the next step of the US$5.5 billion project, formerly known as Dohaland. Phase 4 of Msheireb Downtown comprises 135,000 sqm of mixed-use development across 12 buildings that will include commercial, retail, healthcare, residential, a 4-star hotel, civic buildings and public spaces. The world’s first sustainable downtown

16 | www.thebigprojectme.com

Dohaland 2

regeneration project, Msheireb Downtown will utilise “unique mixed-use project utilises age-old principles of design and urban planning to create a pedestrian neighbourhood, minimising congestion and encouraging a community feel distinct to Qatari contemporary culture,” according to a statement released by its master developer. HOK has been appointed tfor its experience of sustainable urban development; the firm will be mandated to target LEED gold rating.

Future of green not in public sector SaudI Green Building Council urges private sector to innovate green construction The Private sector and citizen participation have been hailed as key factors in the innovation of green construction. Contrary to the common belief that government incentives will lead the adoption of sustainable building practices, organisers behind the Saudi Green Building Forum said the challenge of containing the rate of increase in Saudi Arabia’s electricity and water demands is huge, there are a range of tools that can be used to reverse the current trend. “Innovative energy saving technologies in glass, lighting, thermal insulation, water reuse and building materials are in the market and currently being developed. Many of these innovations will be presented at the event from leading private sector organizations including Schneider Electric, ABB, Somfy, Jotun Paints, Phillips and KIMMCO,” a statement from the forum organisers read. Over 300 delegates are expected to attend the Saudi Green Building Forum , taking place at the Intercontinental Hotel, Riyadh from October 15 to 17. A pre-conference master class will include special training workshops hosted by the US Green Building Council, designed to educate attendees on core concepts and strategies of the council’s green building rating system. Completion of the workshop is a pre-cursor for those looking to sit the LEED Green Associate Exam. “The private sector’s role in engaging Green Building innovations, the Saudi urban development boom in public and private sector; and the citizens’ active participation enriches the green buildings idea,” said His Royal Highness Prince Dr. Mansour Bin Miteb Bin Abdulaziz, minister of Municipalities and Rural Affairs. Faisal Alfadl, secretary general of the forum, added: “What became apparent from the inaugural event in 2010 was an issue that unites green building interests worldwide. “That issue is how new technologies use renewable resources and materials that are sensitive to the environment and the affect this has on innovation in design, construction and operations,” Alfadl added.

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TALK | Ziad El Chaar, DAMAC

The secret to success In the face of global downturn DAMAC properties handed over more buildings than any other developer in the UAE during 2011. Managing director Ziad El Chaar speaks about the success and DAMAC’s next luxury venture

ABOVE: Al Jawaharah Tower, Jeddah Corniche.

”In the global economy today having a secure investment like this is tremendous”

ABOVE: Ziad El Chaar

ince the American subprime market threw the world into turmoil three years ago, DAMAC properties has completed 30 buildings; 21 of which were delivered in 2011, totalling 4072 units. According to the developer it is more than its two biggest rivals combined. Defying the fate of its competitors, the secret of DAMAC’s success hasn’t been to adopt the usual survival strategy of diversification, but to do more of what it does best; luxury. In fact as the world diversified, DAMAC did the opposite; not only developing its luxury credentials but building on them with the introduction of the new Suits and Spa hospitality brand. “Since 2002 our specialty has always been luxury,” says managing director Ziad El Chaar. “In 2002 we started with the slogan ‘luxury lifestyle providers’ then we evolved to ‘live the luxury’ and now we are going into hospitality with ‘luxury at your service’ and a very important element of luxury is the location,” he continues, adding that this incorporates key facilities and views and enhancing them with “unique, premium design” in everything from the residents’ lobby to entertainment areas. “I don’t like to use the word crash, but since

18 | www.thebigprojectme.com

November 2008 we have completed 30 buildings and those are in various master plans of Dubai from iconic projects in Dubai Marina to the buildings in DIFC, Jumeirah Lake Towers and Jumeirah Village South,” El Chaad explains. The projects delivered over the last year (see box) buck the trend for thrift usually associated with periods of low economic activity. The highlights of the handovers have included Ocean Heights in Dubai Marina and a triple tower development at IMPZ, Lago Vista, which has 1020 units. The statistics average out to the equivalent of constructing 15 units a week since the company was established less than a decade ago. “When the market goes through some tough times and begins to correct again, as we have seen in Dubai, this is where you can clearly see the value of those markets because those projects are usually the first to start growing in terms of price and returns,” he continues. It’s a line echoed throughout the company’s management, applying the old adage of what hasn’t killed the market will make it stronger. According to the latest FPI investor sentiment survey, confidence in the market is at its highest level in

News

The total square foot area of all DAMAC’s completed and under construction projects

Park Towers, Dubai.

buildings at various stages of construction

DAMAC’s completed projects The Crescent

3 buildings

Emirates Gardens 6 buildings

Live the luxury

Restaurants inside Burjside Boulevard.

12 months and almost 60% of investors predict investment markets will improve as soon as the next six months. “Definitely the economy is strengthening and the realistic market is coming back. In key locations quality buildings, and the percentages now are still shy but they are very important percentages, show we have moved from a downturn to stability and now growth has started,” El Chaar says. Continuing the success seen to date, DAMAC’s plan for the coming twelve months is to seize on the positivity and continue the upward trend; the developer currently has 50 buildings at various stages of construction across the MENA region and the pace is unlikely to slow. Asserting that the company is well capitalised and financially stable, DAMAC is notably proud of its payment model, built on stagepayments from clients during the construction process, thus ensuring structured cash flow throughout the project. It’s a model DAMAC uses for its properties in the UAE, Saudi Arabia and Lebanon.

TALK | Ziad El Chaar, DAMAC

30,018,635

“Luxury is in the design, in the interiors, in the execution, and very importantly luxury is in facilities management. Imagine you are living in a luxurious building and the lifts keep breaking down, even though the building can be an expensive building and the elevator can be an expensive elevator, this is not luxury,” says El Chaar, adding that luxury and quality are mutually exclusive. It is further to this ethic that DAMAC this year began collaborating with Versace on interior fit outs for Al Jawaharah Tower, on the Jeddah Corniche – a major project for DAMAC in Saudi Arabia and therefore a key focus for 2012 – and DAMAC Tower, Beirut, on which the main contractor will be announced soon. In both developments the interiors have been designed and supplied by Versace Home. “We will always try to bring to the market what the market wants, it’s everything down to the size of the apartment, the layout of the apartment, the design of the kitchen in the apartment and the accessibility. So we always envisage the clients and we are always flexible to change whatever changes they need,” El Chaar explains. Complementing the association, and further meeting market demand from clients, DAMAC last month announced the launch of DAMAC Suites and Spa. Designed to complete the luxury experience for residents of the still under construction Burjside Boulevard, locted in Downtown Dubai, the brand is a bespoke hospitality management

Ocean Heights

1 building

Lago Vista

3 buildings

Business Tower

1 tower

XL Tower

1 building

Smart Heights

1 building

Park Towers

2 buildings

Emirates Gardens 2 6 buildings Tuscan Residence 6 buildings

Projects in the pipeline

Al Jawharah Tower level 3 in progress Park Central

level 12 complete

The Corner level 11 complete Watere’s edge level 4 slab in progress Burjside Boulevard level 33 in progress Green Park ground floor slab cast Marina Bay level 24 complete Oceanscape level 18 in progress The Heights, Jordan level 11 in progress The courtyard, Jordan binding work completed The Lofts, Jordan basement 2 slab completed The Piazza, Qatar enabling works complete Executive Bay level 15 in progress Suburbia level 12 cast

www.thebigprojectme.com | 19

TALK | Ziad El Chaar, DAMAC

2002 the year DAMAC was established

Burjside Boulevard, Dubai

Elevators inside luxury services apartments Burjside Boulevard.

Ocean Heights, Dubai.

company, established as an independently run subsidiary of DAMAC, that will provide a spectrum of personalised services from housekeeping to personal chefs and private yacht charters. “You could buy a pent house in one of our projects that will be used as a holiday home, so you may visit twice a year. You cannot come for a holiday for 15 days and be worried about who will clean your apartment, drive your car or where will you do laundry services. So by hiring

20 | www.thebigprojectme.com

buildings delivered BY DAMAC to date

DAMAC suites and spa we can give you the whole package,” El Chaar details (see box). Adding that in order to “live the luxury”, the choice of entrusting the task to a private subcontractor was declined in favour of personally overseeing each individual element of luxury living. “We prefer to create another company to ensure the levels are five star and plus because if you’re living the luxury, if you have a luxury project, you expect luxury services. “We have hired experts from the field and we are ready to manage the client expectations at the same level that we sold the project to them. “At the same time we are going to extend the services of this hospitality company to the people who are buying in all other projects,” he says and also adds the service will be fine tuned ahead of Burjside’s 2013 completion, in a number of “select” projects.

The future

The focus for 2012 will be to continue the construction and delivery of current projects, including Burjside Boulevard and others in the UAE, Saudi Arabia, Lebanon and Qatar. Completing 36 projects since the company was established in 2002 may be impressive, but the developer currently has another 50 under construction.

As DAMAC continues to defy global markets while redefining luxury, El Chaar asserts: “We operate in strong markets.” “Real estate now will be a long term investment market. Even today as we move from the correction phase to stability, the returns in Dubai stand between five to six percent, to be conservative, and in the global economy today having a secure investment like this is tremendous,” El Chaar concludes.

DAMAC Suites and Spa Personalised services Housekeeping Room service State of the art gym Concierge Restaurants Personalised services Private chef Personal shopping service Baby sitting Butler service Spas services within the apartment Other luxury services Private yacht charter Private jet charter Limousine and chauffer services

news in focus | road safety

Safety first Following news that current and future road projects in the Gulf are worth $142 billion, Abu Dhabi Municipality’s Majed Abed Al Kathiri explains how the Emirate will select its key project partners to incorporate Intelligent Traffic Systems on its roads

“The road safety audit process is mandatory, which is not only being followed by developers, consultants and contractors but also being agreed among the different departments” 22 | www.thebigprojectme.com

he UAE is reportedly leading the way in the Gulf, spending a 40% share of the region’s US $142 billion investment in road infrastructure projects. But as major plans near completion in Abu Dhabi, the Emirate is implementing an “intelligent traffic system” (ITS) to cut the average fatality rate below its current average of 2.7 per day. The municipality road safety unit and Department of Transport introduced road safety audits to be conducted on all road infrastructure projects – a step which according to head of the traffic services directorate is a key to addressing safety from the concept design phase, through construction and operation of all road transportation projects “The road safety audit process is mandatory, which is not only being followed by developers, consultants and contractors but also being agreed among the different departments for

example traffic police, transport authorities and the Urban Planning Council,” Al Kathiri says. ITS is defined by ITS-Europe (ERTICO) as the integration of information and communications technology with transport infrastructure, vehicles and users. By sharing information the system enhances the safety and efficiency of an entire transport network, integrating users, transport systems, and vehicles through state-of-the-art information and communications technologies. ITS helps shippers and carriers move freight to its destination reliably and efficiently; it can aid the flow of traffic, improve the value of road and rail systems already in place and even prevent and detect accidents.

Looking abroad

The Emirate is openly calling for international societies and working groups associated with

REliAbility AccESSibiliTy

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Door Technology | Automatic Door Systems | RWA and Ventilation Systems | Safety Technology | Glass Systems

Bewegung mit SyStem

news in focus | road safety “This committee has a clear mandate to ensure clear lines of communication at individual levels, and enable fast and efficient response to any incident,” he explains, adding: “It has so far proven very effective in dealing with incidents in the City of Abu Dhabi.”

The key criteria for Abu Dhabi’s final tender partners Products conformance to currently accepted technical standards Open system protocols and modular architecture for ease of implementation and scalability Innovation and best value

intelligent transportation systems, that meet prequalified criteria, to join the initiative, which will be further discussed at the ITS summit, hosted by abu Dhabi’s police and municipality and scheduled for November 21-24. Such groups include the Intelligent Transportation Society of America (ITSA), Intelligent Transportation Systems Society (ITSS), Research and Innovation Technology Administration (RITA), Institute of Electrical and Electronics Engineers (IEEE), ERTICO and ITS Arab. “We do not want to limit ourselves with a company but would like to develop business relationships with many who meet our standard specifications, offer innovative and costeffective solutions, and are committed to provide local support,” Al Kathiri continues, adding that during the prequalification and tendering processes, measures will be taken to ensure that qualifications set out in the tender documents are met (see box).

“It is also ensured that specifications are revised and updated regularly to keep up with technological advancement in the field of ITS. However, it is made certain that such advancements are proven technologies,” he says. The department is actively seeking the knowledge of countries that have successfully achieved ITS standards, such as Singapore, Japan and Norway and the implementation of ITS in the region is based on specifications based on international guidelines and best practices. In addition, Abu Dhabi’s executive council has approved an Incident Management Committee between the traffic police and Saaed, Siemens, the Department of Transport, civil defense, and other government institutions, including the municipality. Al Kathiri says the police presence in conjunction with the DoT and Saaed, with traffic operations staff in the traffic management centre is another step taken to “enhance communication between different departments”.

Warranty, service level agreements, and technical support International and UAE/Gulf relevant project experience

Abu Dhabi’s road projects New interchange at the Carrefour Roundabout and at the Khalifa University Widening of the current Mina link Temporary link to connect Hamdan Street with Mina Street Upgrade of urban traffic control by introducing adaptive traffic control system. Additional traffic lanes where required at thirty signalised intersections 12 new signalized intersections

www.thebigprojectme.com | 25

SITE VISIT | KIZAD

The world’s best kept secret It’s a cornerstone of the Abu Dhabi economic vision yet few outside the industry have heard of the 417 square kilometre Khalifa Industrial Zone. A year after its launch, ADPC CEO Tony Douglas and area construction manager Brian Sadler take Melanie Mingas on a guided tour of the site

’m sat in a car with ADPC’s Brian Sadler; we’ve been driving for over an hour on a whistle stop tour of the largest industrial development zone known to man. It’s a trip ADPC officials make by helicopter on a monthly basis to track the progress of the development. As we tour the site I think back to an interview with ADPC CEO Tony Douglas, who said: “The reality of it is there is almost no vocabulary that I posses, that allows me to express the scale of what we’re talking about. “I’ll use whatever superlatives I can conjure up, imagery that we can give you, but honestly when you go there you’ll think ‘oh, this is what he was going on about’.” Already aware that Kizad is four times the size of Abu Dhabi Island and that the landmass of Zone A equates to 340 football pitches – or two thirds the size of Singapore – I’m still left thinking ‘oh, this is what he was talking about’. During the whistle stop tour we cover a vast area of the 51 square kilometre Zone A – the entire Kizad development will cover 417 square kilometres with Zone B, “the big part”, on the other side of the E11. We drive to the outermost port from where the world’s longest conveyor belt, at 14 km, appears half the size, and the world’s largest aluminium smelter, operated by EMAL, and its neighbouring Taweel power plant are dwarfed on the horizon. Zone A was officially launched a year ago next month. The first ships docked on August 25 with up to two ships per month docking at the port until completion in March 2012 and full operations are rolled out in Q4 that year, offering annual capacity of 2 million containers a year and 8 million tonnes of bulk and break

26 | www.thebigprojectme.com

By this time Kizad will provide 150,000 jobs and have 100,000 residents. It’s also casually dropped into conversation that there are there are currently 11,500 construction workers on site.

Planning tomorrow today

ABOVE: ADPC CEO Tony Douglas.

“This is about making

sure you have a very strong and compelling proposition because the big test is to come ”

bulk cargo. The first ever tugboats were welcomed on September 15. Construction will continue until 2030 by which time the entire development will be able to handle 15 million TEUs and 35 million tonnes of bulk cargo, with EMAL handling 4 million tonnes of cargo a year at its exclusive berth.

A staggering US $7.2 billion has been invested in the development and to maintain the official ADPC line that planning has been “strategic” is an understatement. While Douglas explains the key to a successful infrastructure project is to build it for the future, we pass culverts that are being built now to facilitate expansions over the next generation; a 12 lane super highway will replace the road we are on today – part of a network that will intersect the development to provide efficient road links to the E11, with smaller roads constructed for use by fully automated vehicles transporting cargo from ships to shore. The first and third longest bridges in the UAE are already here and Etihad Rail’s national network will also serve the area. Part of the land is reclaimed, for which the biggest dredging fleets in world at the moment have been put to work, even excavating enough land for the next phase of expansion. Following the delivery of the ship to shore cranes in August, the container yard – the first automated container yard in the Middle East

– is now ready to handle the ships of tomorrow, which Douglas says are “significantly bigger” than the ones the old cranes were originally installed to handle. “On a mega project like this, the greatest consideration is that you are building for generations to come. You need to anticipate, to some degree, the future and the one relatively easy bet to make is that international shipping will get a lot bigger. So when you stack the cranes you have to do it where they are going to be taller,

because the ships will be higher and they will have to reach further,” he says. Going on to describe how the 3.2km key wall is massive, he says that it has been designed so up to two more can be added as the development, and market, demand (see images).

Big Business

Mistakenly assuming that I can’t be shocked any more, I ask Sadler how people react when he tells them he is the area construction

The port in May 2009.

News

Aerial view November 2008.

SITE VISIT | KIZAD

“On a mega project like this, the greatest consideration is that you are building for generations to come” manager for the definitive mega project. His reaction? “Nobody outside the industry knows what I’m talking about. It’s like the world’s best kept secret, without actually being a secret.” He’s right; despite the reaction, the team behind Kizad are far from secretive about its progress – or future. Currently travelling the world to showcase Kizad to potential investors, the team has already visited India, China, South Korea and Germany, with the UK and US next on the hitlist. It’s a strategy that got off to a flying – or driving – start when the project was unveiled to the public on November 13 2010 at the Abu Dhabi Grand Prix. “We started with the local market and then identified five additional markets. We then went to the Hannover Messe in March where we had a very successful European launch,” says Douglas adding the international roll out has gone to plan. A number of alliances have also been brokered with international banks to provide a specific position within various markets. Firstly HSBC to leverage markets in China and Hong Kong and most recently India’s Bank of Baroda and the Commercial Bank of China Ltd (ICBC). “That has proven to be very successful as it gets you straight into a far more mature, targeted, strategic conversation very quickly. Trying to achieve that the other way would mean spending a lot of time trying to explain what Kizad is and finding the people you need to get to see,” Douglas explains, adding the strategy was a “smart move” to establish mature relationships quickly “on the top floor of all the big corporate buildings”.

The docks near compltetion by November 2009.

www.thebigprojectme.com | 27

SITE VISIT | KIZAD

2030

$7.2b

End of construction and deadline for abu dhabi economic vision

Total investments to date

December 2010.

That’s not to say the success to date is making ADPC complacent. While Douglas agrees the project has started well he goes no further than calling it a “realistic start”, upon which Abu Dhabi’s 2030 Vision can continue to be met. Explaining there are “massive variables”, such modesty is not only realistic but refreshing; a global project must encompass global economics. Recalling the impact of a worldwide financial crisis on the initial roll out of the project, Douglas says that despite improvements in Kizad’s worldwide target markets “we certainly wouldn’t want to get to the point where we get ahead of ourselves.” “This is about making sure you have a very strong and compelling proposition because the big test is to come – to convert the intention into reality – which is why the day job down on the site is no nonsense, big project, hard-nosed delivery, and failure is quite clearly not an option,” he asserts. “You have Rit to eat. think it in the Bus about re iumquis tiist, ut currency voluptatur? of the next generation. Whilst we are very pleased with all of the early progress we have made we certainly wouldn’t get carried away.”

Talking tactics

Kizad isn’t just a huge construction project, the business plan behind it underpins Abu Dhabi’s goal to increase GDP four fold, generating $418 billion from non-oil and gas sectors. Kizad’s role in this target will see it responsible for 15% of this figure and the sectors that will generate these revenues have been very carefully selected. Kizad is divided into clusters for eight key sectors with a ninth for mixed use and other industries (see box). Within each zone an entire production line will be facilitated. For example, EMAL’s aluminium production will be supported by upstream, downstream and production operations, all situated in close proximity

28 | www.thebigprojectme.com

Kizad, May 2009.

group Douglas says there are those who can but Rit eat. Bus re iumquis tiist, ut voluptatur? have never done within Abu Dhabi and there are those that have no capability and intention to shoulder that responsibility. Douglas explains the third dimension comes back to the relationship Kizad has with international banks. “Unsurprisingly we find you have companies with the capacity to completely fund a venture themselves, companies who have got capacity to fund it themselves but are looking for a blend of local and self funded investment and then June 2010.

to minimise and time and carbon impact of transportation. The diversity of the clusters and pledge to give investors the ultimate one stop shop, requires a level of tactical planning that is in itself as amazing as the construction project. “When we got into the tactical execution of it, knowing we have to have the ability to provide a one stop proposition when every customer has different requirements is about recognising that yes, you are a bespoke client and therefore we have configured ourselves to be able to offer a bespoke solution and the tactical execution of it. And I think that’s the key to it,” Douglas begins. Douglas explains the business proposition Kizad promotes as a three dimensional matrix. The first dimension is the businesses that are local to the UAE or regional; joint ventures of regional businesses with an international partner and following the government announcement of International Investment Zone Status last November, 100% foreign owned companies. The next dimension is dealing with businesses that have the capability to project manage the installation of all their own facilities. Of this

The clusters Aluminium Steel Engineered Metal Products Petrochemicals & Chemicals Pharmaceuticals & Healthcare Equipment Food Paper, Printing & Packaging Trade & Logistics Mixed Use & Other Industries

Records The first and third longest bridges in the UAE EMAL; world’s largest smelter Longest conveyor belt; 14km linking EMAL’s plant to its exclusive berth

foreign ownership status allowed

size of the break water

companies who need financial assistance. Those three dimensions; be it the type of business from local to fully international, in terms of can they develop it here, from yes totally through to not a chance, to can they fund it with assistance, we’re finding we have every combination in that matrix,” Douglas continues. “Let’s imagine you’re an international busi-

August 2011. Aerial view towards the port.

ness, you want wholly owned status, we can do that. Also with a land framework that gives you 100% foreign ownership status, we can give you free zone trading status. “You may have the capability to set up your own massive processing plant but you’ve never done one here, in which case we will help you with that. And you might have the ability to fund a venture but in terms of tax efficient structuring you may want to have some of it blended with local investment,” he sums up. “We’ve had fascinating responses.”

National treasure

While industry may not have the cleanest image, ADPC has invested $240m to conserve the local environment, particularly the coral reef, leaving the site not only protected, but healthier than previously, a claim proven by the hundreds of species of marine life visible from the shore during our visit. Referring to the Gulf’s only coral reef as “a national treasure”, Douglas has joined the marine scientists on their regular dives to monitor the reef as part of the conservation work, diving in an area closed off to the public. To protect the 7km reef, a breakwater measuring 8km has been built and Sadler says the way the port is constructed will prevent, should

an accident occur, any chemicals or other products from leaking out beyond the port. The coral is satellite mapped and also monitored through reference points on the seabed, to enable immediate recognition of its development during camera drags. “The reef is in fantastic condition and the good news is all of the engineering that went into the break water has been completely successful so this reef will remain a national treasure for the future,” Douglas says. It’s part of ADPC’s environmental and social responsibility work which also includes a sustainability plan and waste management. The work hasn’t gone unnoticed; last year ADPC won the environmental protection award at Seatrade Middle East. Back on dry land Douglas and his team are understandably proud of their achievements to date, with the work that is still to come merely the next step in the evolution of the port. “I genuinely can’t think of any examples anywhere, which are as exciting as this in terms of sheer scale, technical and engineering endeavour, the way of trying to bring the resources of many big organisations together and align them with one simple, common objective, which is to deliver this on time and within budget safely,” he concludes.

Half way round the world The site, half way between Dubai and Abu Dhabi in Taweelah, was chosen for no reason other than its location; it’s half way around the world. Providing access to both the east and west as well as the Gulf, on land there are four major airports within close proximity; the first phase of the UAE’s well publicised rail network will cover Kizad then span the entire GCC and potentially link to Europe and the far east; as mentioned, Zone A’s major roads will link to the E11 and soon to be extended Emirates Road extension. Not only do these elements aid the ships that dock here, they also make it an attractive stop off for cargo destined to travel worldwide. Such factors have already proven to be winners with investors from Germany; a country that itself isn’t strategically located to easily reach the rest of the world and also has high energy costs.

www.thebigprojectme.com | 29

SITE VISIT | KIZAD

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Market Explorer | TURKEY LEFT: Ankara Esenboga International Airport, one of 11 TAV airport projects.

Tapping into Turkey Driven by the private sector, Turkey has one of the strongest construction and export industries in the region; those with a foot in the door give their tips on how to tap it

ABOVE: Yusuf Akcayoglu, TAV

“FDI’s, Joint-Ventures and consortiums are what foreign players should look for if they want to have a stake in Turkey”

ore famous for its EU ambitions, coffee and historical sites such as the first known human settlement in Catalhoyuk, few are aware that Turkey is also home to the world’s second largest construction export industry. According to UK Trade and Investment statistics, in 2009 over 30 Turkish contractors made it into the Engineering News Record’s (ENR) Top 225 International contractors; second only to China. The country is in the top 12 producers of building materials in the world, supplying both the international and domestic market; which in turn contributes 4% towards Turkey’s GDP, employing more than one million people. Official literature from the body states that Turkish contractors have been active in 81 countries since the 1970s; diversifying into areas such as industrial buildings, oil refineries, roadtunnel-bridges, international airports and urban rail transport systems. “The prime factor driving this growth is the increased contribution of the private sector,” says Yusuf Akcayoglu, Gulf regional director of Tepe Akfen (TAV) a local contractor with international operations and particular experience in airport developments; having been awarded contracts by the Turkish government for projects including Ankara Esenboga, Izmir Adnan Menderes and Alanya Gazipasa in Antalya, TAV’s 11th airport contract was announced last month for Medinah Airport, Saudi Arabia. But while their current strategy is to expand into western and central African markets, including South Africa and India – while simultaneously increasing presence in Russia, North Africa and Gulf – there are also significant opportunities within the country. “Unlike the countries severely affected by the

financial crisis, Turkey’s banking has successfully implemented the lessons learnt from 2001. With efficient and effective regulations in place, confidence in the economy remains stable,” he adds, further saying that a significant proportion of activity in the domestic market comes from private real estate developments, public infrastructure projects and complex financial models such as PPP and BuildOperate-Transfer (BOT). It is a sentiment echoed by general manager at YEM – The Building Information Centre, Baris Onay PhD “Although housing projects attract more attention, a sense of economic stability – with the help of solid financial system that was restructured in 2000 – motivates both public and private sector investments in infrastructure, transportation and energy.” YEM is an information centre on construction materials and technology and also the umbrella organisation responsible for YAPI TURKEYBUILD Exhibitions and business publications. The company recently launched materials research portal, Material ConneXion Istanbul. “The challenging part is that foreign players have started losing their presence in the market due to increased capabilities of local players. FDI’s, joint ventures and consortiums are what foreign players should look for if they want to have a stake in Turkey,” Onay adds (see charts overleaf).

Attraction

Resilience to global economic – and political – conditions and the ambition of the private sector supported by a stable and equally ambitious government means many of the projects initiated in Turkey are done so under PPP finance models.

www.thebigprojectme.com | 33

Market Explorer | TURKEY

“I would highly recommend any company that is

interested in Turkey to analyse the market in detail and to team up with a Turkish company”

Onay details Turkey’s geographical position and combination of both eastern and western influenced culture as providing opportunity and flexibility in business relationships. “This prompted expert foreign companies to enter into the market and establish long-lasting relationships by undertaking prestigious and profitable projects,” Akcayoglu explains. “Moreover, Turkey has a young and very well educated population, which means that the foreign companies have a vast pool of resources available to utilise in their business operations. Last but not least, Turkey is a wonderful place to live and work. Bridging two continents, it has many historic, cultural and touristic attractions,” he continues. But the increased competition has not affected operations for aerial platforms and machinery suppliers Paksan. “Nowadays in Turkey we can observe the phenomenon of high-speed urbanization,” export sales representative Olga Erdogan observes. “Each year thousands of new houses, administrative buildings and recreational centers are being built across the country. Electrification and maintenance of new built up districts creates opportunities to produce more special equipment including fire fighting trucks and platforms,” she adds. Adding that there is plenty of work for all, Erdogan also observes that buying materials and machinery from outside Turkey isn’t as attractive as it may seem. “Our business is not influenced by the presence of foreign countries in Turkey,” Erdogan continues. “On one hand, there are a number of European manufacturers producing quality products but their prices are too high in comparison to the prices we offer to our clients. On the other hand, the quality of Chinese products is several indicators below,” she adds.

Breaking into turkey

Combining diverse cultural influences, economic stability and ambition, Turkey is reaching a pivotal point in its development. “Before we go into detail about recent developments, we need to understand the macro economic drivers that have created a higher multiplier effect in the past 10 years,” reports Onay, who continues to relay that strict correlation exists between Turkey’s GDP growth and that of its construction industry. In 2010 the country experienced a 17.1% growth, when many countries – all perceived as wealthier – faced recession.

34 | www.thebigprojectme.com

Turkey: the projects

ABOVE: Inside Ankara Esenboga International.

“Turkey’s major

strength is its more diversified economy, when compared with the Middle Eastern countries”

“Contracting Services have become a key export item, and the building materials industry as a whole has generated a trade surplus of approximately US $10 billion,” Onay continues. “Not only have numbers been growing for the last 10 years but also the complexity of projects and contracts undertaken is notable,” he says.

•

Zorlu Center

•

Varyap Meridian

•

Expo Centre / ORA Theme Park

•

YHT – High-Speed Rail (Istanbul-Ankara)

•

YHT – High Speed Rail (Konya)

•

Marmaray - Rail Tube Tunnel (connects Asian and European sides of Istanbul, masss transit Project)

•

Kanal Istanbul (aims to connect Black Sea and Marmara)

•

3rd Bridge in Istanbul (in addition to Bosphorus and Fatih Sultan Mehmet bridges)

•

Nuclear Plant in Mersin

•

3rd airport in Istanbul - Silivri

Turkeybuild takes place at various locations throughout the year. The next exhibitions are scheduled to be held: Izmir, October 13-16 2011 Istanbul May 2-6 2012

and even these companies are teaming up between themselves to win contracts” facing the challenge head one, he says: “The major concern of these countries is their economy’s dependence on the oil and gas revenues. “This eventually makes the economy vulnerable against the price fluctuations in the market; resulting in collateral effects to the overall economy. “At this point, Turkey’s major strength is its more diversified economy, when compared with the Middle Eastern countries.”

Where to begin...?

A profile for success from UK Trade and Investments

What is the right approach to Turkey? In conclusion, Onay comments that it is a combination of industrial capabilities and economic outlook that justify the existence of mega projects and large developments in Turkey and that it is the domestic contractors that are best positioned to take advantage of such opportunities. While UKTI offers a range of advice for companies looking to break into the market (see column), Akcayoglu maintains that construction’s relevance to the national economy means that breaking into the industry is no easy feat. “There are numerous successful Turkish construction companies having international experience,” he says. “Therefore, especially now as the Turkish construction companies grow substantially, competition for the domestic projects is fierce and even these companies are teaming up between themselves to win contracts. “However, as some projects require a highlevel of engineering and expertise, Turkish companies are forming alliances with specialised international companies, which are globally renowned for their experience at those particular projects. “Therefore, I would highly recommend any company that is interested in Turkey to analyse the market in detail and to team up with a Turkish company,” Akcayoglu adds.

Beyond the borders

The lucrative Turkish companies that leverage their domestic success, and manufacturing strengths, to successfully tap markets around the world generate 91% of their business from those markets, according to Onay. Yet that doesn’t mean to say they have been immune to the impact of external forces. Contracting services and the supply of building materials may give the country an upper hand in the Middle East, but several government-led campaigns to buoy the machinery industry with funding incentives, haven’t been as successful. Additionally, Onay says the current situation in North Africa and the threat of further political unrest means the Middle East is increasingly – and potentially even disproportionately – significant for exporters. “When you export more than you sell locally, losing your international markets is only bad news,” he says. Akcayoglu maintains such a threat is not as strong as others faced in the Middle East, namely economic diversity. “Most of the economies in the Middle East are driven by the hydro-carbon revenues. They are turning this income into massive infrastructure investments in order to build or reshape their countries,” he says. Continuing to observe that despite the situation, regional governments are proactively

The following points illustrate the type of approach that companies doing business successfully in Turkey often take: •

Leave your preconceptions at home.

•

It’s all too easy to be overawed by the challenges, but keep hold of your business sense as tightly as you would anywhere else.

•

Do your homework on the market and on potential partners.

•

Patience is a virtue. Some things may take longer to set up than you think (especially if they involve bureaucracy), so allow for this in your preparations.

•

Take a long-term approach, but don’t stick rigidly to your plans. Things often change rapidly and unexpectedly in Turkey.

•

Obtaining good quality independent legal and professional advice is essential.

•

If your product is in danger of being copied or counterfeited, seek specialist legal advice on how best to protect your intellectual property rights (IPR).

•

Don’t forget to carry out due diligence

•

Take account of social and business customs in Turkey.

www.thebigprojectme.com | 37

Market Explorer | TURKEY

“Competition for the domestic projects is fierce

You’re smart

You’re in the highly competitive construction industry. You are tendering while still overseeing existing construction projects, not getting information from all your sites on time. Accounts are battling to give you up to date reports. It’s seat of the pants stuff, and all the time... you are signing cheques.

BuildSmart is NOT a rejigged commercial accounting package — its SOLE PURPOSE is construction enterprise accounting. BuildSmart shares information with Candy Estimating and Planning, producing a living budget that becomes a powerful project re-planning, forecasting and management tool throughout the life-cycle of the project. BuildSmart can be deployed quickly and with a minimum of customisation. BuildSmart uses MicroSoft.Net/SQL technology.

Timely and informed management interventions lead to improved margins and a competitive advantage. CCS presents BuildSmart, a customised construction accounting enterprise solution. Now you can: • get REAL—TIME financial control when you want it, where you want it. • compare your REAL COSTS against your BUDGETED COSTS. • make informed decisions when a situation arises and intervene immediately. • have FULL INTEGRATION of Costing, Procurement, Payroll, Project Management, Project Accounting and Enterprise Accounting.

All the tools you need...

Estimating, Planning, Valuations Cash flow, Forecasting, Earned Value, Drawings, Materials

Candy Estimating and Project Control software is used by hundreds of satisfied contractors in over 50 countries around the world. We build our international strengths while we build YOUR strength. We listened to your requests, as industry requirements changed. We built new software modules as you built dams, roads, bridges and towers. As you formed public/private partnerships, we integrated software that opens communication and cooperation with your colleagues... allowing all divisions and departments of your company to work seamlessly towards the same goal... giving you real control over your costs, streamlining your processes, improving your efficiency, enhancing your productivity and filling your order-books. ESTIMATING: Pricing libraries, Take-off, Indirect costs, Free-format worksheets. Sub-contractor enquiry, comparison and award, Alternative Tendering, Mark-up, Production, manhour and wastage allowances and analysis, Reporting, Integrate the Estimate with the Program, Immediate forecast cash flow, Tender Finalisation

VALUATIONS: Job Modelling, Sub-contract control and payment, Monthly valuations, Analytical variations pricing, Allowable vs Cost reconciliation, Engineering information, Cost to complete by cost rate resources and cost worksheets, External Cost import for cost vs allowable reconciliation and cost at completion FORECASTING: Integrate the Bill of Quantities with the Program, Forecast the bill and resources, Summarise into Project Codes ( With, What & Where), Forecast summary cost codes ( When), Base forecast, Monthly allowable, Collect costs, Forecast allowable and costs PLANNING: Critical path planning, Resourcing, Organising, Progress, Information schedules, Integrate schedule with the Estimate, Time/ location CASH FLOW: Payments, Receipts, Nett Present Value, Currencies and exchange rates, Integration with the Bill and Program

XXXXXXXX || Barry COMMENT XXXXXXXXXX Furlong, HARSCO

RIGHT: Ibn Batutta Gate where Harsco engineering project for wide-span Arabic arch bridge incorporating 4No. concrete beams 5m deep and 0.8m wide.

Working smart

With over 30 years experience in the region, Harsco Director and UAE general manager Barry Furlong explains how business can learn from the company’s adoption of ‘working smart’ What is ‘working smart’?

To Harsco, working smart means value engineering right through from concept to design and delivery. Our value proposition is that we are able to bring our vast global experience and technical competence to every project undertaken and we refer to this as ‘Insight Onsite’ – our brand promise. The Middle East is a transient economy. Harsco retains staff a long time within the region giving us an unmatched depth of expertise in local operations. We share knowledge of 19,000 employees on a global basis through information portals. In most cases we have encountered a problem before and can immediately recommend a solution. Within our business we aim to work with the best clients. There is an internal awareness and determination to work with them to ensure that we give them the best solutions to their problems. Harsco endorses a value selling culture.

How do customers benefit as a result?

Harsco staff are selected for their excellent capabilities, this ensures we build trust as a long term partner for the contractor. We provide a cost-efficient solution; Harsco designs are accurate, clear and always drafted according to best practice. Our centralised design office reduces overheads and we pass-on this saving. We are always safety compliant and we confront problems and work with the contractor to solve them but most importantly we keep our promises.

How far into a firm’s operation should ‘working smart’ reach?

At Harsco there are global initiatives underway to streamline information flows within the

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company and better manage the performance of our key suppliers. For example we have reduced the complexity of our supply chain to speed the procurement process and have concentrated some of our support services in global innovation parks. One other important activity has been to improve the consistency of our contract management procedures to further minimise risk. When projects such as these are undertaken, Harsco ensures they are properly resourced. Cross-divisional teams are established and the incumbent staff are in backfilled positions so everybody is thoroughly committed until completion of the project.

How adaptive are firms in the region to working differently?

Harsco is a ‘matrix run’ organisation and has an adaptive business culture with engaged staff. This makes us more receptive to change and a lot of effort is given to communicating the corporate vision. There is an expectation that we will achieve the greatest integration possible between our business units. We regularly communicate across time zones using tools like video conferencing and as such the ‘pace’ that our business is practiced at seems to be much faster than for other firms’ we encounter. Many firms in the region seem to have more bureaucratic approaches and you can tell this from the way that they respond; they appear reactive and less ‘solution focused’ and they may be less willing to share information. Historically they may not have been as adaptive when business was booming. Less planning may have been undertaken and many firms just responded to demand but now these firms have to think more longterm to handle risk as

Travelling Formwork Culvert Engineered to Suit Rapid Construction Sequence

“Many firms in the region seem to have more bureaucratic approaches and you can tell this from the way that they respond. They appear reactive and less ‘solution focused’” economic conditions are squeezing margins. Some firms in this region have made radical capital expenditure cuts or redundancies and are now struggling to exceed customer expectations. Harsco intends to ‘thrive’ not merely ‘survive’ in these conditions and we feel such success is driven by strong leadership.

PROJECT UPDATE | AL JABER LEFT: The ETP site located in Qatar.

Safe and sound In August this year Shell commended Al Jaber and Partners for their 19 million hour record for zero lost time to accidents on site of the world’s largest GTL facility. Now three months from completion The Big Project finds out how it was achieved

ABOVE: The project achieved 20 million hours with zero LTI.

”The impact of the initiative was measured by the total number of hours worked without any accidents” 44 | www.thebigprojectme.com

ven before it is due to become fully operational in December this year, Al Jaber and Partner’s (AJP) Effluent Treatment Plant (ETP), in Ras Laffan Industrial City, Qatar, is already setting world standards for both size and safety. By the end of 2011, the plant will be the world’s largest such facility for the recovery, treatment and re-use of industrial process water and is already certified as being one of the safest sites in the region, following the achievement of 19 million hours with zero lost time incidents (LTI); the highest safety record to date for both AJP and project partner Shell. At the peak of construction, the project involved more than 52,000 workers from over 50 nations. Today, AJP has 1500 men working on a project for one of the most hazardous sectors, with AJP business development manager Eng Ammar Ammar saying the achievement is down to strong communication and clear cut standards.

“The oil and gas industry is ranked in the top three most hazardous work environments in the world and therefore health and safety standards must be adjusted to that fact. “However AJP comes from a strong health and safety background and therefore we are used to work in such an environment,” Ammar elaborates to add that a “remarkable” number of training initiatives were in place to ensure continuous awareness of the zero LTI goal. These included a dedicated training coordinator, centralised training centre supported by satellite training sites. “The impact of the initiative was measured by the total number of hours worked without any accidents, thus Al Jaber completed the construction of the world’s largest ETP with zero LTI in 20 million hours; this was done through meticulous planning and working to set safety standards through an Integrated Management System. “This was established by cooperating with all

scarce natural fresh water resources or on seawater,” says Rob Overtoom, technology manager on the Pearl GTL project.

Business boost

The project isn’t just significant for AJP, it is projected to increase Shell’s worldwide production capacity by 8%; a primary contributor to the company’s growth over 2012. Using resources from the world’s largest single gas field – discovered by Shell in 1971 – the completed facility will process an estimated three billion barrels of oil over its lifetime. The gas field, known as the North Field in the Arabian Gulf, contains more than 900 trillion cubic feet of gas, equivalent to 150 billion barrels of oil, or over 10% of worldwide gas resources, according to Shell. The plant will manufacture a number of products (see box). The Effluent Treatment Plant (ETP) project is designed, constructed and commissioned to optimise the management of a water processing system aimed at achieving zero liquid discharge into the natural environment; a standard never before known on such a project. Thus, the plant is dedicated to the treatment and recycling of industrial effluents that would be produced from this massive industrial complex. “The complex operational function of the plant required the design development of an integral mass balance, based on several constraints provided in the project brief,” Ammar comments. According to data, Pearl GTL opens a new global market for Qatari natural gas and allows Qatar to contribute constructively to improve

”The oil and gas industry is ranked in the top three most hazardous work environments in the world ” Construction of the plant comprised the following: •

128,000m³ of earth works

•

76, 000m³ of concrete

•

23 steel tanks erected ranging up to 28, 000m³

•

23 concrete tanks ranging up to 23,000m³

•

323,000 ID of piping

•

4,500 tons of structural steel

•

90 units of tanks & vessels installed up to 30m high

•

9,988 units of instruments

•

1,755,000m of electrical and instrumentation cables

•

65,000m² of mechanical piping painting

•

33,500m² of structure painting

•

16, 000m² insulation.

•

Budget: Al Jaber & Partners’ share of the works valued at QR 735,000,000 for the full civil and structural work, mechanical steel tank and equipment and piping installation works

•

Workers on site: 1,500

The Pearl GTL Complex comprises three processes: •

a process dedicated to the upgrading of cooling water to process water;

•

a process dealing treating suspended oil and wax containing GTL complex effluents

•

a process combining and upgrading non oily and prior de-oiled effluents from the Pearl GTL into various qualities of re-usable process / irrigation water.

•

In addition, the whole process is to be fully a ‘Zero Discharge Facility’ – something that has never been achieved for this type of process.

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PROJECT UPDATE | AL JABER

parties involved and aligning the safety performance expectations, setting out rules and establishing standards,” Ammar adds. In addition to the certification awarded by Shell, AJP also holds the ISO 9001, OHSAS 18001 and ISO 14001 certifications in recognition of occupational health and safety standards in addition to environmental and high quality management systems. Responsible for the full civil and structural work, mechanical steel tank and equipment and piping installation works, AJP’s share of the project is worth QR 735,000,000; it is one of the company’s most significant construction projects to date. Jointly owned by Qatar Petroleum and Shell, the ETP project is also currently the single largest investment by Shell with a value of between US $18 to $19 billion. When completed, it should be the world’s largest integrated GTL complex, however such industrial activity requires copious amounts of water. The plant is designed to be fully self-sufficient in its use of water, with capacity to treat 280,000 barrels of water a day – all the water produced as a by-product of the GTL process – making it comparable to a plant for a town of 140,000 people. After cleaning the industrial water by removing trace metals, hydrocarbons and any particles, most water is used for cooling by evaporation and for steam systems. Some of it will be used for planting bushes, shrubs or trees at the plant. “When fully operational the amount that Pearl GTL will produce makes it possible to run the plant without drawing on Qatar’s

PROJECT UPDATE | AL JABER

”We look at the bigger picture and we believe that a small incident on a site could cost all the cost cutting one might make”

the local environment by supplying a cleaner alternative fuel for transport requirements. The fuel produced has been tested by Shell in conjunction with Toyota, Volkswagen and DaimlerChrysler to prove it emits fewer emissions than standard diesel. With expertise in all aspects of GTL works, Shell’s middle distillate synthesis (SMDS) technology has been supporting such developments as Malaysia’s Bintulu GTL plant, to increase production. It is the result of three decades of R&D.

Meeting demand

When the project started in 2006 the world was at the height of a construction boom; contrary to some of the benefits that may bring, Ammar say the benefits were short lived with extra pressure on budgets created by the high demand for labour and materials. “During the period of construction, resources were scarce and once found prices were extremely expensive; one good example would be the prices of steel and oil, which reached $147 per barrel.” The implementation of procurement strategies such as long term agreements, also helped AJP to garner commitment from its suppliers and striking partnerships with recruiting agents and training schemes to hand pick workers with the necessary skills prior to mobilising in Qatar.

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“The same was true for human resources, in such a highly technical project, a high turnover of human resources could lead to a serious delay in the works. We overcame these issues through meticulous planning and innovative procurement strategies,” Ammar explains, adding: “Every project provides different challenges, however, AJP through its experience has ensured that all necessary procedures of dealing with unknowns are clearly established and provide a flexible approach so that they can be updated and amended to adapt to any occurring situations.” Other initiatives included the Flawless Start-up initiative (FSI) driven by Shell, of which, Ammar comments: “Systematic approaches were formulated, which were imbedded into the work operations requirements for the workforce and included the suppliers and subcontractors involved in this project.” He adds that it was an idea developed with the concept “build it right first time” employed from the start. Established by its Abu Dhabi-based parent company Al Jaber Group, Al Jaber and Partners Qatar has also worked on New Doha International Airport (NDIA) and the community area and design and construction of North Site Utility Tunnels for Qatar Foundation, Education City. Now well established in the country, it has has four asphalt and nine

screening and crushing plants in Qatar and has provided labour camp facilities in Ras Laffan, Al Khor Lusail and Messaied for 6,000 labourers in addition to its 1,400 sqm head office in Doha. The Pearl GTL project is part of a joint venture with OTV and French company Saipem. Upon announcement of the 19 million hours with zero LTI, AJP business development manager Ammar, was quoted as saying: “Safety is part of how we do business. It provides us with a permit to operate. In addition, the project needed to run smoothly, be delivered on time, to budget and to the highest quality standards. “This is our company’s modus operandi, always aiming for the very best for our clients.” Adding that AJP is committed to health and safety, Ammar says: “To us it is not about numbers but about surviving lives. “We look at the bigger picture and we believe that a small incident on a site could cost all the cost cutting one might make by reducing health and safety measures. Therefore, to us the risk is simply not worth taking especially when we are talking about people lives,” he concludes.

Pearl GTL will produce •

GTL base oil – for lubricating vehicle engines, gearboxes and transmissions.

•

GTL gas oil – blended with conventional diesel for cleaner burning and lower emissions.

•

GTL kerosene – used for cooking, lighting and dry-cleaning. Its potential to be used as a jet fuel was proved by Airbus A380 flight from Filton in the UK to Toulouse in France. Its higher energy density and lower emissions means more savings per flight.

•

GTL normal paraffin – considered virtually identical to oil-derived paraffin. It offers cost and location advantages to detergent producing companies.

•

GTL naphtha – with higher paraffin content helps plastic manufacturers to produce more plastic.

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NEWS ANALYSIS | CITYSCAPE

Getting realCityScape 2011

LEFT: Visitors look at Falcon City of Wonders.

As banks around the world faced meltdown, markets in the UAE appeared to defy the downturn... then reality hit. Three years since CityScape visitors were offered cash for their place in the queue, and a decade since the show began, The Big Project asks Rohan Marwaha about CityScape’s past and the industry’s future

W ABOVE: Rohan Marwaha.

“We don’t expect 70,000 people to walk through the door like they did in 2008, what we expect is very good number of the industry to be here and to have important conversations.”

ithin days of CityScape 2008, when projects such as Burj Khalifa and the Palm developements were showcased by master developers Emaar and Nakheel, the house of cards that was Dubia’s real estate market came crashing down. In the face of corruption rumours that reached as high as the government owned companies themselves and US $13.6bn “made available” by the UAE Central Bank to maintain liquidity through a local credit, squeeze throngs of investors still travelled to the exhibition believing that a slowdown was unlikely and a crash impossible. Three years later and the Emirate’s credit risk has begun to decline; last month, ruler Sheikh Mohammed Bin Rashid Al Maktoum, inaugurated the second phase of the green line with the words: “Dubai is well”. Yet as the fall out haunts the city to this day, what that actually means is unclear. With projects only half completed and a desolate real estate landscape that was once the focus of the whole world, Dubai shows limited signs of recovery. As CityScape Global – the last dance before the party ended – celebrates its tenth year, how much has changed? And is there evidence of recovery in any form? “That’s impossible for anybody to say, look at what’s happening in Europe right now and the US people are talking about double dips and all sorts, but I think what I can say, quite definitively is that there are

48 | www.thebigprojectme.com

pockets of real estate, in Dubai certainly, and around the Middle East, which are doing very well and are increasing in value,” observes CityScape group director Rohan Marwaha. “That’s something that we haven’t seen over the last two or three years, so it has come down to the real fundamentals; demand, supply, location. These are specific things for real estate that people have perhaps forgotten in times gone past. But now you look around and the old town is growing and Marina prices have really bottomed out and are just starting to pick up,” he continues, reiterating that they key is still location location location. “That’s what it has always been about so as long as we are holding real estate in those places prices will

News

XXXXXXXX NEWS ANALYSIS | XXXXXXXXXX | CITYSCAPE

continue to increase. Obviously there are some things to work out with other places,” he adds.

The show goes on

In October 2008, as banks worldwide faced complete melt down, the Burj Khalifa project was well underway; albeit under its original Burj Dubai name. After a bail out and extensive delays to its surrounding development, studios in the world’s highest tower are today being leased for 100,000 AED per year. One of the three Palm Island developments – government owned developer Nakheel’s solution to Dubai’s “beach shortage” quandary – opened soon after in November 2008. But the grand multimillion dollar firework displays that celebrated Palm Jumeirah’s inauguration were not repeated on the other Palms in Deira and Jebel Ali. And they are yet to take

place on Nakheel’s fourth reclaimed wonder; The World. July issue of The Big Project listed some of the 300 developments officially ‘on hold’, according to the Emirate’s Real Estate Regulatory Authority (RERA). They included Boris Becker Business Tower and Schumacher Business Avenue, both part of the Burj Khalifa development; The UAE’s second highest tower, Marina 101; and much of the

NEWS ANALYSIS | CITYSCAPE

“We were about the industry side; the consultants, the architects, the engineers, institutional investment that needed to come over to help Dubai and other places around emerging markets build” Going on to explain the positivity witnessed in conferences, Marwaha reports that RERA has seen a “significant” increase in transactions, that it attributes to the newly introduced regulations and codes of governance. While the CityScape portfolio expands globally, adjusting to various local markets, Mawaha says the focus for next year’s Dubai show is not quantity but quality. “The speculators have moved out. We don’t expect 70,000 people to walk through the door like they did in 2008. What we expect is very good number of the industry to be here and to have important conversations. “Conversations about how they grow, how they look at new communities, the sustainable issues behind development, attracting investment and transparency – these are the real questions and challenges and that’s what CityScape is all about,” he concludes.

three billion square feet Dubailand. The Burj al Arab made it to completion and even JLT is close to concluding its ambitious brief. Still a glut of commercial, residential and even retail developments wait patiently for the funds required to complete them. “If you were around in 2008, you saw the peak of the CityScape brand and event here. In 2002 we launched as a commercial architecture show and the show evolved because in 2003 the freehold law came in and we focussed more on property development and we really rode that entire wave, along with the rest of the industry,” says Marwaha, adding the purpose of the show then was to create a platform upon which members of various industry strands could meet. Yet some of the properties showcased at this year’s exhibition are every part as outlandish as those featured in 2006, 2007 and 2008; mostly because they are the projects from 2006, 2007 and 2008 that were long ago, or still to be, completed. Over the tree day show only Nakheel announced new projects; a townhouse development on The Palm Jumeirah. “I think new developments are a bit of a way off. Maybe the MENA region has a lot to fulfil on the existing developments that

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have yet to be built so that will happen first until they can start to jump into new projects,” Marwaha predicts.

The evolution of CityScape

Since 2009, an exhibition that has still managed global growth despite falling visitor and exhibitor numbers has moved from being the industry’s yard stick to punch bag. Blamed for sustaining the speculator bubble and encouraging the reckless behaviour that contributed to the regional real estate crash, Marwaha explains CityScape’s first show, focused on architecture, and recalls how the introduction of the freehold law in 2003 was seminal in its evolution. “I think in those days it became different to what it once was, which was a business to business event. It turned into half the people there trying to buy and sell end units, which was never really what we were about. We were about the industry side; the consultants, the architects, the engineers, institutional investment that needed to come over to help Dubai and other places around emerging markets build,” he recalls. Returning to its core objectives this year’s show saw partnerships with Dubai Municipality in the Future Cities conference, designed to create a platform upon which to debate the growth of sustainable cities, economically and environmentally.

“The speculators have moved out. We don’t expect 70,000 people to walk through the door like they did in 2008. What we expect is very good number of the industry to be here and to have important conversations”

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XXXXXXXX | XXXXXXXXXX 52 | www.thebigprojectme.com

News

XXXXXXXX COVER | ECONOMY | XXXXXXXXXX

After gold rush the

When Lehman Brothers declared bankruptcy on September 15 2008 the world was thrown into chaos; not only did the banks start falling but the buildings stopped rising. Three years on, The Big Project investigates if – and if so how – the industry is recovering and what the next three years could hold

n September 15 2008 the world went into a very significant downward turn. The fall of Lehman Brothers had an effect on every single individual in the world and I saw a shift in orders literally from that day. You could see it around the world.” Paul Foster, head of property for built asset consultancy EC Harris, first arrived in Dubai in 2007. He recalls a “fantastic place” but recalls the same frantic pace and reckless project financing that so many others did too. As the effect of the collapse of the fourth largest investment bank in America resonated throughout the world economy, orders dried up, projects faced uncertainty and as soon as New Year 2009 HSBC was reporting contract delays and cancellations in the UAE alone had reached $75 billion.

On September 14 this year, almost three years to the day, Citigroup updated that figure to $170bn and Citigroup’s construction project tracker reports that the UAE, the region’s second largest market, accounts for 56% of the total project cancellations in the MENA region. “The world economic down turn was deep and long and in some parts of the world there will be years to go. There may well be parts of Europe that never recover. Spain, Ireland and Greece are in serious trouble, as is the US,” Foster highlights. “You can see some of the mistakes that were made. With hind sight everyone could have avoided them,” he continues. “It was like an accident and the accident comes as a series of different events that becomes a single

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COVER | ECONOMY

"The reality is the construction industry has serious flaws in the way it conducts business" catastrophe,” says Xavier Sedaghat, head of the strategy division at JAJ Consultants. Sedaghat also recalls the immediacy of the fallout from America and even today he says the company still doesn’t talk to clients about equities – a once profitable and viable investment option. “The first effects were immediate, without a question, and I think the collapse has sustained itself and gone deeper. I think there is a danger for everybody involved in the industry that it is still perceived to be a falling market,” says David Clifton, business development manager with Hill International. “The problem you have economically with a falling market is that you commit yourself for one level, but who is going to catch the cold when it turns. That’s the steer for quite a lot of people with quite a lot of long term and large projects. There will be a level of uncertainty when pricing that risk. So the effects are still being felt. We can still feel the market going down,” he observes. Last month, HH Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai and vice president and prime minister of the UAE, declared the Emirate’s financial woes were over. Inaugurating the second line of the metro with the words “Dubai is well”, he added: "A thousand hard steps forward taken by the Emirates are better than a single step backward". Sheikh Mohammed has publically emphasised that no projects in the health, educational or housing sectors would face delays as they “touch the life, stability and happiness of citizens”. In response to the Arab Spring similar approaches have been taken in Qatar and Saudi Arabia. The industry knows it is these projects that will buoy the market. “The broad brush view is there’s not a lot happening in the old markets, but there is great excitement for us looking at infrastructure and social housing,” says Clifton, naming Qatar, Bahrain, Saudi Arabia and Iraq as key locations for such projects. “Anything that is high end in terms of residential or commercial is slow, and I can’t see that moving particularly quickly, unless there is a surprise form somewhere,” he adds. “The recovery around the world is mixed,” asserts Ted Garrison, author of Construction 3.0. “However, there appears to a significant upturn in the Middle East and in part, this is due to the investment in infrastructure. To illustrate the comparison the GCC is expected to have a larger construction market

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ABOVE: Nicholas Maclean Managing Director, CB RE ME

"To not only survive the downturn, but to take advantage of the upturn, contractors should be improving their supply chain management"

in 2012 than the United States. The GCC primed the pump with infrastructure spending and this will lead to more commercial type construction,” he predicts, explaining the average industry contribution towards GDP ranges from 6% to 12% and that this can be one of the most reliable economic indicators of recovery. “In essence, infrastructure spending is one of the best investments possible,” he continues.

Live and learn

As an authority on successful business models in the industry, Garrison’s Construciton 3.0 strategy has been adopted by businesses worldwide, not only in a bid to streamline efficiency, but to simply survive. Yet he is the first to admit the strategy is not

BELOW: King Abdullah Financial District, one of a number of mega projects in Saudi Arabia.

On Hold

Highlights from the RERA-issued list of more than 300 projects the body says are officially on hold in Dubai Boris Becker Business Tower

BURJ KHALIFA Alternative Capital Invest (Gmbh) Dubai Properties 29 Boulevard

BURJ KHALIFA Emaar Properties PSJC Cambridge Business Centre

Memon Developments (Fzc) Dubai Silicon Oasis Authority Celestica

Syndicate Developer Limited Nakheel Champions Tower 4

Takmeel Investment Limited Dubai Sports City Corporate Tower

Sheffield Real Estate Llc DMCC Business Park Dubai Life Style City

Dubai Life Style City L.L.C Dubai Land Ivory Tower

Sokook Investment Group Dubai Tech and MEF Authority Marina 101

Sheffield Real Estate Llc Emaar Metro Tower revolutionary; it is based on principles (see box) first written in Sun Tzu’s book The Art of War, 2500 years ago. But they are principles that were abandoned during the gold rush. “The reality is the construction industry has serious flaws in the way it conducts business. Reports done in the United States, United Kingdom, Australia, Canada and Singapore all report that the current approach to construction creates barriers to fixing the current problems,” he begins, naming those barriers to be lack of leadership, adversarial relationships, parochialism, fragmentation of the industry, inadequate owner involvement, increasing scarcity of skilled labour and liability. “What this has done is increase the cost of construction through inefficiency and waste. It

Ilyas & Mustafa Galadari For Investment & Development Managment (L.L.C) Dubai Properties M Schumacher Business Avenue

Burj Kahlifa Dubai Properties Palm Spring

Palm Jebal Ali Damac Properties and Nakheel Co. Park Avenue

Gulf Investments (Fzc) Dubai Land Soraya Tower1

New World Investments Limited Nakheel

is estimated that the amount of waste in the construction industry is at least 30% and could be as high as 50%,” he continues. Naming the design-bid-build approach as not only the most flawed but a barrier to even greater growth in the regional industry, he says this widely adopted method is inefficient and encourages both fragmentation and a lack of accountability. Advising that the concept of design-build and integrated project delivery could improve the economics of projects by up to 30% he says the greatest challenges now are simply to cut costs and improve performance. “Without overly simplifying things, these two issues act as a break on the industry. In essence, instead of trying to get the low bid price on every project, which is very inefficient, the industry would be better creating integrated teams of experts that could focus on eliminating waste and inefficiencies. “While this approach is counter-intuitive to many, it has been the formula for virtually every other industry’s improved productivity and cost reductions,” he continued. Using Chrysler as an example, Garrison explains the company’s change in format unveiled that working with the best qualified vendors for each element of production, rather than seeking the lowest bid every year, increased the price of individual parts but brought down the overall cost of the car. “It wasn’t the cost of the parts that was the problem, it was the cost of the interactions and problems due incompatible parts. This is exactly the same problem the construction industry is experiencing,” he summarises. “The answer is greater collaboration. What other industries have done over the last 50 years to significantly improve their productivity is what’s often referred to as managing the downside supply chain. “This eliminates waste and inefficiency because the participants create collaborative teams to attack inefficiency and waste. This has been very effectively worked in the other industries and the construction industry must adapt this approach. The savings would be significant,” he asserts.

The legacy of boom and bust

While many are quick to criticise the behaviour that led to the current situation, the legacy of the boom period includes some of the most significant engineering and design feats in the modern world; Burj Khalifa, Burj Al Arab, Qatar’s Museum of Islamic Art and mega

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COVER | ECONOMY

"A thousand hard steps forward taken by the Emirates are better than a single step backward"

COVER | ECONOMY

"The first effects were immediate, without a question, and I think the collapse has sustained itself and gone deeper" projects such as KAEC and Abu Dhabi’s various island projects, to name a few. “This is a region that is very proud and they want to present what they can do in a very visual way through buildings, and I think there are some of the most beautiful buildings in the world here. The legacy of what those boom years delivered was a lot of really good buildings,” says Foster, naming Abu Dhabi’s central market and Doha’s signature architecture among his personal favourites. Elaborating that the abstract legacy is a mature market, Foster continues to observe a shift in focus that has seen greater emphasis placed on the management of the projects completed during the boom. As the investors and developers behind the projects face severe delays on ROI they are now looking how best to maximise profit over the whole project lifecycle, thus taking greater interest in how the asset is managed. “There are distressed asset opportunities that weren’t there before where developers, lenders and investors are having to step in to develop out their investments with developers who perhaps haven’t been able to. “There is a very particular set of skills to enable that to move up in the right way, otherwise you don’t realise the value quickly,” he explains, adding that such a shift in attitude has also aided the green movement that is being driven by market demand for cost efficient assets that are not only easy on the environment but the health of occupiers also. His observations are echoed by Sedaghat “New regulations are focussed on the management of buildings and it is positive that this is now linked to the government. Dubai has moved from a state of building to a state of managing because now it’s built what do we do? “The guy who put his money in this building has to keep it for as long as he can to get his money back. So this is where the market is going now, asset management and investor expectation management,” he says. “Dubai will always be attractive; because of the tax cuts, because of the sun, because of the tourism because of the leaders. “It’s pure ambition, it’s pure capitalism. The fundamentals are difficult to understand right now because the market has been growing so fast,” Sedaghat adds. Foster also observes an increased focus on health and safety, praising the emerging consistency with standards is Japan, Hong Kong, Western Europe and North America.

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The new markets David Van Graan, vice president of Sales for MAN Trucks “Saudi Arabia is the solid hub for performance for us at the moment, but we have all had to become more prudent in our approach to the market. When economies are tough you still have to develop. “While we eye other areas and sectors our customers have become really prudent and that knocks back. “We have to look where we are at now in the context of 2008. There are natural business cycles but the trend was abnormal in 2007 and 2008. We have had to take stock again and analyse where the most realistic market and requirements were at that time.” David Semple, vice president of sales for Manitowoc Cranes “Saudi Arabia is certainly the biggest construction site in the world, and it may not have the world cup but it has 25 million people. “The demand they create will always outstrip Qatar.” Arif Kalam, vice president of sales and marketing, Lafarge “Iraq is an interesting market. Business wise, it has given us fourfold this year what it has given us in previous years. We see many of the long term government projects coming to fruition and those companies that stood the test of time will be there in the boom period that’s coming.”

ABOVE: Abu Dhabi has also grown.

Future focus

The only hesitation shown by the experts when asked about their predictions for the future, are how far ahead they can predict. While some refuse to look beyond six months, others are anticipating market behaviour as far as five and ten years down the line, when Qatar’s World Cup projects and many of Saudi Arabia’s mega projects are due for completion; including the world's next tallest building, Kingdom Tower. “There is a strong lender and investor market here, so while we have seen a lot of the European banks significantly reduce their operations you can see the regional lenders and investors are strong on the whole,” Foster reports. “You can see they are looking at external investment, taking advantage of markets such as London and New York. You can see them going into these markets where there is property at discounted values,” he adds. Closer to home the countdown to stability appears to have begun.

BELOW: Economic prosperity brought the region developments such as the first seven star hotel, Dubai's Burj Al Arab.

In fact as Dubai pays off its maturing $4bn debt facility, other Emirates embark on megaprojects and neighbouring GCC countries announce staggering fiscal budgets, ambitious plans to build the world’s next tallest tower and a string of new stadia for a World Cup tournament, is it logical to think the worst is over? “The government has a track record of spending on things, developing the roads, the airports the airlines. Here, buildings work properly but the key questions we are hearing from our corporate clients is where to recruit in the Middle East, and the only answer to that is still Dubai,” says Nicholas Maclean, managing director of CB Richard Ellis Middle East. “You can look around the market place and find the skill sets you need, and that’s very different to the situation in many of the other market places,” he continues. Having recently been awarded the contract for the global marketing of Dubai World Centre – a development intended to “cement the UAE’s position as the logistics hub of the region” – the firm will be speaking to potential investors in the UK, US, Europe and Far East to attract investment in DWC’s surrounding developments. “This is a long term project so the first thing we have to do is introduce the project to people in the aviation or manufacturing industry.

“There was a flurry of activity when it was under construction then things went quiet. Now we have to re-energise the enthusiasm for that airport and if we can do that I think it’ll sell itself because the concept is strong and the information the government is providing in terms of growth and logistics here speaks for itself. “We just need to get the message across,” he continues. Commenting on the future, Maclean ultimately concludes recovery still lies in the hands of international markets. “We can do certain things to kick start the developers and investors but ultimately we are dependent on what happens in the outside world and until that clarity is here I don’t see a magnificent step forward.” Clifton adds: “In certain areas I think it’s still going down. The UAE is still sliding in terms of projects, in terms of high priced projects, in terms of the sales market. “I don’t think that will change for a while and I think Dubai is pretty flat. Oman probably has some growth but it’s nothing explosive. Obviously we see a pipeline in Qatar and a pipeline in Saudi,” he says.

Survival of the fittest

“To not only survive the downturn, but to take advantage of the upturn, contractors should be improving their supply chain management," says Garrison. “Even if they are forced to compete on design-bid-build projects they can still improve the supply chain management,” he adds, reporting the key area for improvement is the inclusion of trade specialists at the design phase of projects to ensure maximum constructability and efficiency. “This is potentially the largest benefit, but it does require participation by the owner,” he advises. Despite seeing evidence of investment in the region, Maclean’s outlook is conservative. Saying that investment is evident in the region, Maclean’s outlook is measured; he sees benefits in Dubai’s infrastructure logistics and he predicts growing demand once political situations have calmed. There are also benefits for companies looking to position themselves for the emerging opportunities in Iraq. “It has been a tough two years but especially in Dubai we are beginning to see some light at the end of the tunnel. It is remarkable that since

the end of the summer this year people have come back from holiday wanting to do business,” he says. “The region is a cluster of different hotspots, it isn’t a whole entity,” says Sedaghat. “All the hotspots have niche opportunities and if you are present in a market you are able to access and take advantage of it. In terms of investment I see Qatar as the leaders in the region,” he adds. Foster, who since his last visit in 2010 has witnessed notable progress in projects that were then stalled, maintains there is evidence the market is “on the turn”. “We at EC Harris are growing in strength ourselves so that has to be an indication of where the market is. “I expect to see a much greater emphasis on public private partnerships, as opposed to PFI. If you look at the health care work in Kuwait, the Hajj terminal in Mecca they are fantastic examples of PPP and demonstrate that this region is able to do some things that are really grown up. “We are seeing a definite shift to complicated finance structures with complicated employer requirements and performance payment mechanisms, which is not just about how to build buildings quickly, but how that asset will be handled over a 50 or 60 year life,” he concludes.

The key principles to addressing the challenges facing the construction industry, by Ted Garrison 1) Effective Leadership 2) Strategic Thinking 3) Value-driven Operations 4) Increased Innovation 5) Increased Collaboration 6) Effective Risk Management 7) Effective Operations (Lean) 8) Effective Use of Technology 9) Measurement

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COVER | ECONOMY

"We are seeing a definite shift to complicated finance structures with complicated employer requirements and performance payment mechanisms"

CASE STUDY | AUCTIONS Machines on sale at the Ritchie Brothers aauctionn last month.

Going, going, gone Photographs by Cris Mejorada

An Auctioneers’ guide to auctions

“Different people come for different reasons and the auction gets into their blood- they get auction frenzy and they will go mad”

s recovery in the region begins to gain pace and projects in hot spots such as Saudi and Qatar are tendered, more companies are looking to replace their old equipment or re-stock their collection. “Our auction is far more popular now than it has ever been,” says Ritchie Bros general manager, Steve Barritt, who continues: “Again there are upwards and downwards trends in our business and they go through different price ranges but today is our highest point ever with the biggest crowds.” Similar trends are observed by World Wide Auctions (WWA), who last month sold US $18.3m of cars, trucks and bulldozers in three days at an auction in Jebel Ali. “People buy at auction because of the universal need of all shoppers, buyers and investors to search for a bargain,” comments WWA regional VP of sales Keith Lupton.

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“Dealers the world over use auctions to replenish stock, or to encash old or slow moving inventory to turn over their finances. Many buyers prefer to buy at auction as they can see their fellow men, often commercial competitors, bidding to a certain value and hence rest assured that that is a true and sensible value and the machine is indeed worth buying or investing in,” Lupton adds. The rise in popularity of modern day auctions is not just down to the likes of EBay and similar online portals; maintenance costs drive demand for reliable equipment and the industry defies recession as the equilibrium between buying and selling fluctuates. Cashing in on the opportunity of worldwide trade, many equipment auctioneers now offer online bidding so companies worldwide can source the correct machine. It’s a tactic Barritt attributes to the supply demand gap currently present in the sector.

CASE STUDY | AUCTIONS

14,000 Average productive capacity of machinery

“Rather like sitting at the gambling tables of Monaco or Vegas, bidders have to know when to walk away”

Competitors can see how much their rivals are paying for equipment, says Keith Lupton.

“The supply of equipment around the world is very poor. Manufacturers are not building, they’re building to order rather than what they used to build, so people have to come to us for equipment to source the machinery they need,” he explains, adding that such activity is the largest indicator of economic stability in the industry. “People say there is nothing happening but the world is busy,” he adds saying properly functioning equipment is key to meeting this pace.

Photographs by Cris Mejorada

Bargain hunter

Aside from the price advantages of buying at auction both Barritt and Lupton say speed is a key element to the attraction of trading through auctions. “You can come on Tuesday, buy a machine, take it, pay for it on Wednesday and have it that day and start work,” says Barritt adding that everybody comes to auction for a particular reason. “You’ve got people coming to fill their supply, you’ve got people coming for specialist items then you have people who come to get it cheap. Different people come for different reasons and the auction gets into their blood- they get auction frenzy and they will go mad. They start

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sljflkdsfjdsklfjds.

bidding on everything. When we see it we think ‘oh here we go’ and we ask them if they are sure they know what they’re doing. Sometimes they are and other times they’re not,” he adds. It’s something witnessed at auctions worldwide. “Many enjoy the ‘networking’ of a live auction, the human intermingling, meeting people of fellow interests and the excitement to see real-time big-ticket spending – the excitement never wanes. Pay your money and instantly take the item away,” Lupton says. WWA auctions also offer their ABSOLUTE AUCTION, in Lupton’s own words a “superior, quick, low overhead method of disposing of ones equipment in an atmosphere of anonymity and privacy” – advantages that draw bidders from around the world.

CASE STUDY | AUCTIONS

48 months If 24 trucks each last for 48 months a new truck must be purchased every second month

Tips from the auctioneers

Keith Lupton, Worldwide Auctioneers Ltd: “The golden rule is to expect, examine analyse and check, pay attention to the bid board, keep your wits about you and remember all bids are finite. “Pay attention to the bid board, which clearly illustrates last and highest so far bid given. The bid catcher ring men will not allow you to bid against yourself but advise the bidders of a higher bid received and unless potential bidder increases his bid he is out of the running for that particular lot . “Understand the often used term ‘choice’ the highest bidder wins the right to choose a lot or lots from a group – usually similar items by type and age and how equipped – but remember each item is individually priced. “Finally, read and understand the printed rules of the auction given in the registration form and the Bid Book, that are read and distributed prior to the auction.”

Sold

For those looking to auction over the coming months Barritt and Lupton’s tips include everything from proper planning and observation to budget setting (see box). “The only issue is everything is sold as is where is. As soon as the hammer goes down you own it and it’s not going to change. Every auction we get somebody saying they bought the wrong machine, but we film and tape everything,” says Barritt, adding: “The auction business has a stigma but we live on our reputation and we try and do everything we possibly can to make sure everything is correct.” “I suggest marking in their book a ‘boundary’ or a maximum bid so as not to be led into paying more. Rather like sitting at the gambling tables of Monaco or Vegas, bidders have to know when to walk away,” Lupton advises. “Just keep one’s wits about you, network, relax, enjoy the exciting process and feel the buzz,” he concludes.

What the fleet managers say: Paschal Quinn, Plant Manager at Fas Training Centre, Ireland My advice to those buying equipment at auction would be to do it, but be careful that you check the paperwork first; CO certificates, maintenance history and so on.

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Photographs by Cris Mejorada

Machines on sale at Ritchie Brothers.

Steve Barrit, Ritchie Auctions: “The first thing we advise them on at a Ritchie Brothers Auction is come early, sit down and watch what happens. Our auctions run very fast. We sell a machine every 30 seconds and we have a number of people there on sell day that wear orange shirts and we are there to help. Tell us your numbers, what you want to pay and we will help you, but be careful and check what you are buying before you bid. “We don’t sell any machine unless it has the correct documents; any problems with machines we have people there to help. For example if there’s a paperwork problem because on some machines over the years the serial numbers change, so we make sure that is correct.”

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Value Management

Mike Vorster, author of the Construction Equipment Economics programme and US-based professor and engineer, explains the economics behind PMV procurement What are the main elements of your construction equipment management programme and what inspired you to create it?

Three groups are involved with construction equipment. The operations specialists who are concerned about production and how much work a machine can do; the equipment specialists themselves who are concerned about the maintenance, repair, reliability and availability of the machine and the financial specialists who see the machine as a financial investment that must produce a financial return. The course was set up 15 or so years ago at the request of an industry group who wanted to bring these groups closer together and improve understanding between them. In brief, they wanted field engineers, mechanics and accountants to talk to each other, understand each other’s point of view and work together to lower costs and improve

Mike Vorster.

“If you use up and do not replace the tools you use to do your work you will go out of business”

the return they were getting on their fleet investments. The course does indeed bring these three groups of specialists closer together and has improved understanding. I was inspired to create the course by a firm belief that we can and must improve our ability to manage the financial, operational and mechanical aspects of the way in which we manage a very large capital investment.

What are the most common mistakes made in fleet management? Have these changed at all over the course of the economic crisis?

The most common mistakes come from losing sight of or over emphasising one of the three basic aspects (financial, operational and mechanical) and loosing balance in your fleet decisions. A good example of this brought about by the economic crisis is when firms delay replacement in an attempt to conserve capital. They focus on the financial aspects, delay investment in new equipment, cause the fleet average age to go beyond a reasonable limit and thereby make it all but impossible to achieve good levels of reliability and availability. This makes it impossible to complete contracts on time and on budget and so they must conserve more and more capital. This means they have to delay replacement some more and – you get it – they go round and round and down and down the circle of doom.

How does/has fleet and equipment management changed since 2008?

We really have become much better at the financial aspects and have learned a lot about how to look after an aging fleet. We have become much better at the practice of

‘geriatric medicine’ and have learned the importance of condition assessment and preventive maintenance.

What is the first point of advice you would give to a business that: 1) is struggling to manage its fleet

Stick to the basics. Do everything you can to prevent machines from breaking – everything flows from there.

2) is refusing to or unable to purchase more?

Get very good at geriatric medicine. Understand that delaying replacement does not deny the need for replacement. Know that if you use up and do not replace the tools you use to do your work you will go out of business.

Effective fleet management Be very good at preventing machines from breaking. That means you must have the right machine for the job, work it and operate it within its capabilities and have a very, very good preventive maintenance programme. Know your costs – you must keep good cost and production records to help in the tendering process and to help you through very difficult fleet repair, rebuild and replace decisions. Conserve the capital you have invested in the fleet. It is advisable to make good financial investments, keep the fleet working hard and extend equipment life to the maximum possible economic extent.

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CASE STUDY | Mike Vorster

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Placing the blame “As an industry I think we actually allowed Dubai and the Middle East to become a bit of a sham of what it is”

What is your favourite building or project complete or under construction in the region?

Steve Miller: I really like SOM’s Rolex Tower. It’s everything the owner Seddiqi & Sons did in Capricorn Tower, which I still think is the best older building in the city and it’s what architecture is all about. Unlike the fanciful, ridiculous stuff, when you see these tall buildings that are being put together right now on Sheikh Zayed Road, you realise how ridiculous they are in comparison to a real architectural statement.

Giuseppe Colosimo: There are several buildings and probably for me it has to be a tie between Infinity Tower, which is under construction by SOM at Dubai Marina, and the 0-14 Tower at Business Bay Reiser + Umemoto and both for different reasons. But I think the construction methods used on 0-14 Tower by DCC Contracting Company, especially for this region where you have an exoskeleton that acts both as a structure and as the secondary scheme, it’s probably the only example in the region and the innovation in terms of the simple shape and repetition of simple elements such as

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Photographs by Cris Mejorada

Six prominent architects debate who is to blame for the economic crisis and discuss how it will affect the future of design in Dubai

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RIGHT: Thierry Paret.

Karim Benkirane: The only one nobody else has spoken about is the Emirates Towers. Two buildings actually, but an incredible identity on the Dubai skyline. They’re elegant, classical and we had the benefit of having some involvement in the construction so it gives a personal touch to that as well. Again the Burj Khalifa is a fantastic example of an elegant tall building or a mega structure. What’s lacking in a lot of the tall buildings in Dubai is an element of sustainability and quality in that regard.

TRENDS | ARCHITECTURE

“We found ourselves in this land of opportunity for architecture and forgot a little what we really do, which is place-making for people”

What are the main trends influencing architecture at the moment?

SM: I think a sensibility is starting to come into the market place. Whereas before it was just a frantic place to create a city, now there is a sensibility to everything. There’s a little more timeliness to everything, the developers understand projects have to make sense financially, which

“The answer was ‘we just gotta keep building’“ the facade creates such a beautiful tower. Of course also the Infinity Tower in terms of its elegance, even though it’s still under construction. What I like about it is the most minimal use of, what is typically overused in all tall towers particularly in Dubai, glass.

Photographs by Cris Mejorada

Thierry Paret: It’s an easy one but it’s the Burj Khalifa – as a skyscraper it’s quite elegantly done and also the quality of the building compared to other buildings. The finish and detailing is of quite a high standard. Another SOM tower, Infinity also reaffirms SOM’s talent. Tim Brouw: My favourite since I came to Dubai is Capricorn Tower. For me it’s a building that is timeless. Many of Dubai’s buildings have dated in the last three to five years and I think this one has stood its test of time in a short time and it’s a classical building, it’s modern, serves its purpose and fits the street well.

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LEFT: Steve Miller.

“For better or for worse it’s created an identity, the extravagance has created a brand”

probably makes the scale of everything smaller but that’s good because some of it was just ridiculous. TB: Don’t you think that’s partly our fault as a design industry? Because to be honest most of the developers didn’t know what they wanted here and they went out to the design industry and said give us something ‘iconic’. The word iconic was used to its infinitum and I very rarely personally use it now because I feel it has been overused. There are certainly other objectives to identify that but as an industry I think we actually allowed Dubai and the Middle East to become a bit of a sham of what it is. We talk about buildings being sustainable or not being sustainable, whose responsibility is

Photographs by Cris Mejorada

“It was an architectural playground, let’s be honest. There were certain firms globally that actually refused to come here”

that? It’s ours as designers and I think we have let the industry down, as well as many of our clients. We’re the educated ones in terms of what we do and our clients, although they want iconic, they could have still been sustainable buildings. Most of us mentioned buildings that are probably the least iconic as our favourites and yet they are the buildings we like the most. Everybody was trying to do the fanciest but probably the least sustainable, so I think we’re responsible as an industry for the criticism we have laid upon many of Dubai’s buildings. GC: Even back in 2005 and 2007 there was the sweep of architects that were still building with responsibility; look at the Burj Khalifa and its

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technology. Whether it’s the diversion of the wind or the collection of condensation for reuse in irrigation – these are the firms that still get work in the region, even with all the economic turmoil.

They said this is what we want, this is the programme. I have never before seen the deliverables and nonsense that comes in the tenders in this part of the world.

Was the Middle East a playground for new ideas?

GC: But at the same time it is our fault. It’s a thin line between stay in business and give in to your agents. I arrived in 2007 and even at that time there were so many towers being built that anybody could get work, but there was a difference here – extra superlatives on everything. Because as soon as you did something that had a little theory behind it, you would get more commissions. I think it’s kind of both ways, we found ourselves in this land of opportunity for architecture and forgot a little what we really do, which is place-making for people.

SM: The leaders here historically have not easily allowed people do things. I was very much a part of all the planning in Dubai and I constantly challenged the client on the reasons for developing a city that they wanted to be done in five years but won’t even need in the region for 15 to 30 years and they don’t have the infrastructure to support. The answer was ‘we just gotta keep building’. Ok, you don’t see that philosophy much in Dubai anymore and it’s finally limiting itself in Abu Dhabi, but go to Doha and in their minds it is still there, especially with the government related agencies. Luckily Saudi seems to be a little more educated these days and anyway the requirements are totally different to the rest of the region. So no, I don’t think it was the leaders who created or requested us to do this job.

TB: It was an architectural playground, let’s be honest. There were certain firms globally that actually refused to come here; everyone was invited and certain architects had a little more integrity and moral consciousness about the built environment because they didn’t like the playground that was occurring.

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LEFT: Giuseppe Colosimo.

The architecture is ‘arabeclectic’ it was cobbled together. The nature of a high building doesn’t relate to that. Grab the traditional Arabic architecture and stretch it out to 30 or 40 storeys and it just doesn’t work and as designers I think that’s a shame because it hasn’t actually created an identity. It’s actually become a bit more of a criticism of the built environment – PS: I think there is going to be a time period associated with buildings that exist at the moment, especially in regions where there are certain iconic pieces. The brief was we just want; we want it all we want more and we want it here. We don’t want you to question the brief, which from a designer’s perspective the first thing you do is look at the integrity of the brief and then try and solve it in the best possible way. But unfortunately in doing that you might come up with the answer that we don’t think that’s a good idea. TB: But also as professionals we should be guiding our clients who don’t have an idea. We have all worked here long enough to know that once we do that clients won’t ignore it and go for the iconic or inefficient. PS: There is the cycle of doing big jobs and getting commissions off that but there was a time in 2007 and 2008 where that wasn’t necessarily the case. There was just a conveyor belt of pieces that you almost couldn’t keep up with, whereas now the economic situation has caused the right types of commissions going forward.

Photographs by Cris Mejorada

“They knew they had five years; if it wasn’t going to be a global crisis it was going to be a Middle East or Dubai crisis”

GC: There were some developments, good and bad that, that with the crisis didn’t go forward. But good or bad the crisis shifted the focus from the utopian way of building a city to a more realistic way of building a city, which is concentrating on the people and concentrating on efficiency. You see what’s going on now; most projects getting built are not office towers or super extravagant buildings but housing, for which

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“The brief was just ‘we want’. We want it all, we want more and we want it here” there is a scarcity, and hospitals. What Abu Dhabi is trying to do with the cultural centre, because that is the core, binds a city together – keeping the people happy and healthy so almost abandoning that old motto of ‘we build they come’.

What has been learnt?

PS: There should be part of a course at university that’s almost the lessons learnt from the economic rush-hour expansion. Otherwise you do feel it was a fantastic moment in time to be involved in a place that was expanding at such as rate and had such a bright outlook on the future, but there is a lot of architectural ego and as an industry we need to take notice of that. TB: Architectural review used to have a page of shame and I’m quite disappointed that no magazine has done it yet. You could have done a whole magazine on Dubai and it would have

been a weekly issue even without the 80% of the buildings that were proposed never built. SM: One of the positive things that came out of this is that Saudi Arabia started much later and yet they really had much more requirement and in a lot of cases they learnt certain kinds of lessons that have gone into the planning that is going on now. For example King Abdullah Financial District, it’s going to change the whole centre of the city but achieves what they realise they need to do, which is to urbanise an environment, but make it so people can walk from building to building and segregate traffic from walking. There was a wonderful site plan developed by Henry Larsen that at least had sensitivity to customs and sensitivity to the region. Even Saudi engineers and architects claimed to have learned from other cities that were ahead of them, that instead of creating a Los Angeles, which is what Dubai is, a linear city with traffic, they said get people living together. TB: What does that tell you? Yes there is a lot of negativity about what happened but I don’t

PS: Another big issue is that it’s almost self fulfilling and I would love to know the statistics and ratios, but the construction personnel who are obviously contributing to the population here; it isn’t self sustaining in that way. Fundamentally it’s flawed. There are a lot of buildings that are vacant and buildings that will never be completed. KB: A lot of it was fuelled by ego on our part and maybe even the clients’; it was very ambitious.

think it’s all bad. Nobody wants to live anywhere else but here SM: If you ask expats around the world they will tell you Dubai has taken over from Hong Kong and Singapore as the place where everybody wants to live. It’s the easiest place for professionals to relocate to. And where else do you design and build a metro in four years?

TB: Dubai is basically a product of greed. That’s clear, and we have all been involved with developers who didn’t care about design just get it up as quickly as possible, get people in, get a return on our investment and multiply that by a factor of ten. You would go in, buy GFA off no plan and by the time you left the building it had increased by 20%. The whole thing was based on a frenzy created by the clients. They knew they had five years; if it wasn’t going to be a global crisis it was going to be a Middle East or Dubai crisis or slowdown of the market because markets are not constant. They wanted to do as much as possible and that’s why we have the situation we have got. We need to go back and look at it like a sustainable city to fill in the gaps.

Is that possible? All: absolutely

TB: But the leaders need to know how to go back and do that.

PS: A strategic plan is needed. Abu Dhabi wanted a plan and took time on regulations. They do seem to have learnt a little bit. There was no macro-level policing in Dubai. TP: There are pockets of good examples of strategic planning but even in the best weather you wouldn’t want to walk on the sidewalks because it just isn’t that kind of a city. Somebody needs to look at that. TB: Sheikh Zayed didn’t want Abu Dhabi to develop like Dubai, but since he passed there have been thoughts of do we follow Dubai or do we stay conservative?

How would you advise that decision?

TB: Abu Dhabi is the capital and it almost needs to be the Washington DC so it needs and tends to be conservative by nature. Both Dubai and Abu Dhabi can be what they need to be for the country. PS: Abu Dhabi as a place tries to maintain

The panel Steven Miller, regional manager, Perkins Eastman Philip Stone, director of architecture, Broadway Malyan Thierry Paret, president, AIA Me Tim Brouw sports facility architect Giuseppe Colosimo, DESIGN DIRECTOR HKR ARCHITECTS Karim Benkirane, managing principle, Woods Bagot Dubai

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Photographs by Cris Mejorada

KB: The social factor, as consumers you can find whatever you wish and that’s probably part of it, which is why western expats prefer this location. Architecturally speaking, for better or for worse it has created an identity, the extravagance has created a brand. The built environment is a product of creating a place where people want to come to do business.

RIGHT: Karim Benkirane.

TRENDS | ARCHITECTURE

“We need to do an open intervention, an urban acupuncture to identify the sick part of the city and how to make it healthy”

TRENDS XXXXXXXX | ARCHITECTURE | XXXXXXXXXX

LEFT: Tim Brouw.

“It’s very easy to be critical of something that has been and gone. It’s now about how we learn those lessons and take it forward” advise on the proper development of the urban environment. TB: another way is education, the universities have some really talented graduates now and they are working overseas and they are going back into the industry and in some cases have the direct ear of the authorities. Remember this is a young city, it’s going to take time. SM: AIA offer to have student memberships to all these universities. One thing working well for us is that the only university outside of the united states that actually gives a licence to structure and when they graduate go back to the states and after working for two years they can take the exams is the American university of Sharjah. But again what happens is they hire the young people when they graduate but they want to go into the local companies because they pay them so much more.

cultural linkage, how it develops, the spaces, it isn’t just ‘ok we need 50 hotels there’, it’s far more strategic and policy-led GC: There is a fundamental difference between the UAE and other gulf countries and between Dubai and Abu Dhabi. When the boom started Dubai built for the expats but Abu Dhabi wasn’t too keen on attracting the same lifestyle. They built all the attractions of Italy, the UK, America, and Australia to attract different types of people without really over thinking how to retain the people afterwards. There is just something missing, the connection that helps people link and connect and here we need to do an open intervention, an urban acupuncture to identify the sick part of the city and how to make it healthy

How can associations like AIA help solve these issues?

Photographs by Cris Mejorada

TP: There needs to be more engagement between professional bodies and the government. AIA has only been officially active here for 12 months but we plan to establish those connections and use our experience and knowledge to assist local governments. SM: I have been on the committee for the International Advisory Board for the AIA globally for two years. In America we have the ability to call a congressman, government people, anybody, and a lot of the time especially at state-level they call the AIA to create a panel and tell us what to do.

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In this part of the world they don’t understand the importance of dialogue between professionals and people who are willing to and love to do this sort of stuff. Whether it’s AIA, RIBA, the Australian or Canadian group or all of us, it would be a fantastic way to solve the problems. There is just nobody in the leadership in these countries who knows how to communicate with organisations. Remember there is no such thing as .org in these countries. They don’t understand what a non-profit organisation is. For the AIA we had to form a company in this country because there is no such thing as a .org. KB: You can create those organisations and a body not necessarily affiliated with other groups, like British organisations that pull experts from different parts of the industry to

PS: One thing I have seen in a contract recently where specifically in the contract was the fact that they were looking for an international consultancy so the agencies could get people seconded into some of these international practices for up to three weeks to make sure the agencies were as educated as the people who are going to be submitting the information, which is the first time I have ever seen anything like that.

Where will design go next?

PS: Consolidation is the name of the game. The way in which we responded three years ago to an opportunity was to dive in feet first not asking any questions – it was about speed and ego. These days both the design industry and and our clients have become more risk averse, because they know at any moments the cards could be thrown in the air. It’s actually about demanding a sophisticated solution that is economically viable. GC: A lot of the work will be retrofitting, interior design and infrastructure, talk about more metro lines and social and Emirati housing.

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LEFT: Philip Stone.

PS: There are a lot of ‘unglamorous’ things needed to glue everything else together. GC: Without those pieces you don’t attract the people to stay. The other thing that is probably going to start I think in the next few years will be more philanthropy because people are becoming more educated and they want to give back to their community. There are two ways to do that you can build a monument for yourself or give it to the people.

Photographs by Cris Mejorada

PS: There has been a change certainly in the mindset. In the last year or two there has been a trend for the Middle East to invest in the Far East and Europe. There are other markets in the world that can produce much better ROI than this market. TB: For me the interest is Dubai, Abu Dhabi and what Qatar is going to do; they’ve got 10 years to put it all together. Even though they keep talking about 2030, they’re actually not developing a city it’s a country, they are developing a nation. Are they going to get carried away and follow Dubai and plan everything out so quickly because they know they have a short window and the world will be watching in 2022? While they can build a lot can they sustain a lot? I think we need to be professionally responsible and say to clients don’t go for 70 storeys, go for 40 because that’s sustainable. As a profession we should know the lessons that have to be learned and we should have a book of the top ten and a top 500 lessons. We are the professionals in terms of master plans and the city and environment.

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KB: Instead of going in there and saying no, I wonder if maybe we need to get more active influencing legislation. One of the big problems particularly affecting Dubai is the multiple stratas in buildings. The more of us who get together and try to influence those international type standards the more intelligent products we will see. TB: I think green has got the better of us too; I see very few professionals getting in front of clients and saying no. As professionals we are negligent in terms of the problems that exist. TP: The future is proper city planning and economics. At this point no client is willing to just burn money to make a statement. New York has very few iconic buildings, everything pretty much falls into the background, but it’s the ensemble that makes it a great city. By and large it has created an urban fabric that is good – you have iconic buildings here and there that create special places but overall it’s really about connecting a point and it does that quite well. Here it’s about spending money more wisely, professionals leading the approach and I think along those lines hopefully what occurred in the past will not again. PS: I have been involved in one project for over three years and the revisions it has gone through over that time, the moment of ego to

now which is literally trying to learn lessons to take a contemporary perspective on how to connect individual plots, shade everybody, try to deal with all of these issues has been a fascinating journey. Realising those moments where you see things don’t work. SM: We’re not all bad guys. A lot of people really have tried. The part that really happens is that it’s the client, especially in this part of the world where they are not taking the advice of their own consultants and even when they have secondary consultants they hire half of Australia to be their project managers and they don’t listen to them. PS: A question we are asked quite a lot is in five years time when those blocks have been built out but the economy has changed and now everyone would like office blocks or it’s all hotels; does the actual urban design work? We don’t want to have to keep master planning and master planning and master planning, we want to make sure the infrastructure works but can be future proof for the different economic situations that might occur. That was never a question that would be asked five years ago.

The discussion was held at Talk restaurant at Movenpick, JBR. For information on Movepick’s special business packages call +971 4 449 8888

COMMENT | Murat Tabanlioglu

Survival of the fittest Murat Tabanlioglu and Melkan Gursel Tabanlioglu from Turkish firm Tabanlıoğlu Architects share their predictions for a recovering global economy

he global financial crisis started to show its real effects in the middle of 2007 and into 2008. Dubai as a pioneer in the rise of contemporary constructions during the previous decade, in the Gulf, as a city was the first to signal the influence of the stagnation (or decline) that hit the world. It is not only Dubai that is tormented with delayed and slowed down building sites. Even dynamic Doha had its share of commercial projects with cranes left swinging in the air. Projects are being cancelled, slowed down and consolidated across the region. Private developers have pulled back as to new business is concerned. Even the governments preferred to be overcautious in making major new project commitments in this insecure global economic environment. Yet, firms continue to look for new business and of course construction opportunities in the Middle East, Africa, basically in the GCC. It is true that some governments are still investing and very recently the private investors started to jazz up. According to the Institute of International Finance, between 2004 and 2006 the member states of the GCC recorded a combined current account surplus of €369bn. The IMF estimates that only a quarter of recent oil revenues have been converted into official reserves. For investment Europe is still an important destination, for more conservative money the investment destination is US treasuries. The focus may be expected to remain on the UK and the US. Yet, local investments also seem feasible besides being mandatory; in the Middle East, starting with the withdrawal of American military forces from Iraq, the need for the reconstruction of many Arab countries changing governments and even the regimes, following the civil commotions, will also encourage the re-building of nations through public works and iconic buildings. This includes investments in infrastructure, transport systems (for example, USD 38bn of road projects underway in the GCC), affordable housing (to support the local young population is an important trend for construction companies in the region since the global economic downturn), urban regeneration (in focusing on the development of greenfield projects and the redevelopment of existing

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business and residential areas), hospitals, schools, universities etc... Construction sector highly depends on politics and economics in every case, during such times, many buildings will have greater significance then their functional use; they somehow will become the symbols and prestige for the nations or cities they belong to, then the architects’ contribution becomes a part of the vision of the governance. GCC cities already assert great demand for the urban development besides iconic structures. This creates a valuable medium for architecture and urban design. We are willing

to be a part of it and contribute to world architecture while feeling a part of the regional development. Being architects from Istanbul, Turkey, we feel a strong historical and cultural rapport with the Middle East. We share a very similar culture, Islam is another motive that makes us understand Middle Eastern tradition and requirements better. Due to our geographical, historical and cultural bondage and position, inevitably, we are in direct contact with East and West at the same time.

Tabanlıoğlu Architects was established by Murat Tabanlıoğlu in collaboration with Dr. Hayati Tabanlıoğlu in 1990; Architect Melkan Gürsel Tabanlıoğlu joined the group in 1995 and today it employs more than 80 architects and 20 administrative staff members. Between 1956 and 1990, Dr. Hayati Tabanlıoğlu accomplished major state buildings in Turkey such as Erzurum Atatürk University (1958-1970), Atatürk Cultural Center Istanbul (1956-1977), Istanbul Atatürk Airport (1969-1984), and several pioneering works like the first shopping mall in the country: Galleria Shopping Center (1986). ABOVE: Loft Gardens.

“The reconstruction of many Arab countries, changing governments and even the regimes, following the civil commotions, will also encourage the re-building of nations through public works and iconic buildings”

Since 1990 the company’s scope and portfolio has enhanced, providing services worldwide; in architecture, consulting, master planning, interior design and coordination of related services such as engineering and restoration. Today the award winning firm is celebrating the completion of its Sapphire Tower, in Istanbul; the tallest high-rise building of Istanbul and 15th highest building in the world.

Regional sales and marketing director for carpet manufacturer Desso, Andrew Sibley, looks at occupational asthma in the Middle East and the role of carpeting in improving indoor air quality.

he World Health Organisation (WHO) officially recognised sick building syndrome (SBS) as a health issue over twenty years ago. It’s a complex problem responsible for a variety of conditions from respiratory infection to fatigue, causing illness, absenteeism, staff turnover and low morale. It’s a hidden epidemic caught from the fabric of the buildings within which we live or work. So significant is the problem of SBS that it’s estimated that, in some countries, up to 30% of all offices, hotels, institutions and industrial premises suffer from it – particularly those buildings that date back thirty years or more. There are of course many causes for SBS, from inadequate lighting to poor air conditioning. However, one of the main causes of SBS is the quality of indoor air, and one manifestation of that is occupational asthma, which makes up around 15% of all adult-onset asthma cases in the developed and developing world. Putting that in context, occupational asthma is the most common work-related lung disease in developed countries and is caused by occupational exposure to airborne substances known as asthmagens. Over 200 respiratory sensitisers have already been classified and others are being identified all the time. According to studies, the prevalence rate of asthma in the UAE is around 13.5%, up to 20% in Saudi Arabia, 18% in Kuwait, and 10-11% in Bahrain. The World Allergy Organization Journal reported earlier this year that “chronic respiratory diseases (CRD), essentially chronic obstructive pulmonary disease (COPD), asthma, respiratory allergies, and occupational lung diseases represent a major public health problem in developing countries including the Middle East and North Africa (MENA) countries.” Across the world, the incidence of asthma is on the increase as more people adopt western lifestyles and become exposed to greater numbers of asthmagens. Internationally, there are an estimated 300 million asthma sufferers and, according to the World Health Organisation, some 250,000 people died from asthma worldwide in 2005 alone. It’s the reason why health and safety regulations relating

ABOVE: Andrew Sibley.

“Putting that in context, occupational asthma is the most common workrelated lung disease in developed countries and is caused by occupational exposure to airborne substances” to indoor air quality have become increasingly stringent across the developed and developing world, with sufferers of occupational asthma having greater access to legal redress and financial compensation from their employers. For today’s employers, it’s about recognizing and dealing with the problem as many jurisdictions now make it unlawful in codes of employment to discriminate against asthmatics.

Early detection is important in occupational asthma, because people spend so much time at work – one estimate suggests that a person in a full-time office job will spend up to 1,800 hours a year in their office – that they will have had extensive exposure to their environmental trigger by the time their symptoms become apparent and a diagnosis of asthma is made. That environment starts from the floor because, among others, the German asthma foundation (DAAB) has for some time advised that the harmful effects of particulate matter can be greatly reduced if carpeting is chosen over hard flooring options. At Desso, we’ve gone a step further by introducing a carpet type that is eight times more effective in capturing and retaining fine dust than hard flooring – and four times more effective than standard carpeting*. It works by reducing the incidence of potentially harmful allergy-producing particles by safely trapping and immobilising them, guarantees a significant improvement in indoor air quality, and therefore reduces the risk of health-related problems. AirMaster® was developed to improve indoor air quality in busy interior environments such as schools, hospitals and offices – anywhere where there is a lot of feet treading in dust or other particulate matter and then, when inside, stirring it up into the breathing zone. It might seem an unusual weapon in the battle for better air quality, but it’s been extremely well received internationally by health and safety and personnel professionals who not only recognise the regulatory responsibilities on maintaining good indoor air quality, but the potential legal and other penalties if they don’t. What’s on the floor might not be a complete solution to occupational asthma, but it can help considerably.

Independent tests were carried out by GUI, the German test institute, and based on AirMaster® performance against standard PVC hard flooring and standard structured loop pile carpet. GUI specialises in assessing air quality, dampness and dust particle count.

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comment | indoor air quality

Occupational asthma in the Middle East

SUPPLIER COMMENT | GYPROC

Sound-off with Gyproc In the last article to look at acoustics ‘Sound-off with Gyproc – Part 1’, Gyproc’s Technical Development Manager, Jason Hird talked about ‘noise’ and some of the science behind it, for example the difference between sound insulation and sound absorption and what is airborne and impact sound. This time we shall look at why lightweight partitions work so well and how to maintain that performance when built on site. Sound insulation performance of lightweight partitions

The mass law tells us that sound insulation performance is governed by mass – This is certainly true of solid masonry partitions, where a doubling of the mass (or thickness) will increase performance by around 5dB. However, using lightweight systems, it is possible to consistently exceed the performance predicted by the mass law. A simple Gyproc metal stud partition, for instance, can provide an Rw rating around 6dB better than predicted by the mass law. Different configurations of stud can result in even better levels of insulation, and adding an additional layer of Gyproc plasterboard to one or both sides of the partition will increase sound insulation performance by around 6dB or 10dB respectively. Further improvements can be obtained if the plasterboard lining to one side is partially decoupled from the lining. The best results, however, can be obtained using two completely independent metal stud frames separated by an air space such as GypWall audio. Using the so called ‘mass spring - mass’ principle, the air space between the two frames acts as a damper to reduce sound passing between the two independent linings, minimising sound transmission. The principle demonstrates a much more effective and efficient way of achieving sound insulation in comparison to traditional solutions. Lightweight gypsum partitions designed and built correctly consistently outperform equivalent masonry construction. Typically you can achieve the same acoustic performance as a blockwork wall in only half the thickness with a Gyproc partition.

Performance on site

The sound performance values of systems quoted in literature are measured in the laboratory under ideal conditions and are unlikely to be achieved on site due to flanking transmission – sound leakage through indirect paths such as, windows, doors, external walls, corridors penetrations and services etc. The measurements used to determine the

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Flanking transmission

Flanking transmission is defined as any sound from the source room that is not transmitted directly via the separating element. It is transmitted indirectly via doors or other breaks in the dividing element, as well as via small openings, such as gaps, cracks and holes in the adjoining structure. Deflection heads in partitions are also a common source of flanking sound transmission, typically accounting for a loss of around 4-5dB due to air leakage, in addition to any flanking loss, if not adequately detailed and sealed.

Designing for effective insulation ABOVE: Jason Hird

“Deflection heads in partitions are also a common source of flanking sound transmission, typically accounting for a loss of around 4-5dB” acoustic insulation of a partition, lining or ceiling system are referred to as DnTw or FSTC (Field Sound Transmission Class). These take into account background noise levels and reverberation times in the receiver room and are affected by not only the performance of the separating element itself (partition, ceiling etc), but the performance of the surrounding structure, any penetrations and junction details. When planning for sound insulation, Gyproc therefore recommends a margin of safety of 7dB over the laboratory test results - Rw or STC in order to compensate for flanking transmission on site.

Once a building has been completed it can be expensive and inconvenient to address sound problems; it is therefore prudent to ensure appropriate sound insulation measures and detailing are incorporated at the design stage. Both internal and external sound transmission should be considered and the requirements for each individual space taken into account when planning the building design. Sensible measures, such as separating quiet and noisy activities and the careful specification of doors, windows and ductwork systems, will help to reduce the demands on insulation, whilst continuing partitions to the underside of the structural soffit and the use of Gyproc plasterboard suspended ceilings to both sides of the partition reduce flanking transmission. For separating wall and floor constructions, special care must be taken to ensure correct detailing at all junctions between the separating element and adjoining elements, such as external walls, other separating elements and penetrations or door openings etc. As any acoustic system is only as effective as its weakest component, failure to include effective detailing will seriously limit overall acoustic performance. Air tightness is essential and whilst most junctions will be sealed using standard jointing techniques any gaps or other small airpaths should be sealed using a proprietary sealant.

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

Duravit AG

Fox and Graph

Qatar Cool

Officially certified ‘eco-friendly enterprise’

Anti slip solutions debut in Riyadh and Dubai

IDEA award presented to district cooling firm

Duravit AG has been certified as an ecofriendly enterprise in accordance with ISO 14001. The standard has been awarded in recognition of Duravit’s low water consumption fittings, toilets and urinals – which use anywhere up to half the water of competitor products – and urinals such as the McDry, which uses no water at all. Tested in a dedicated room referred to as the “flushing station”, Duravit says it tests above the international requirements set out in the E997 – which stipulate tests are conducted on products twice every six months. Instead products across its ranges, including wash basins, bidets, urinals and both freestanding and wall mounted toilets, are all subject to tests throughout the year. The frequency of such tests is decided according to each product’s respective percentage shares in Duravit’s annual production output. At the main plant in Hornberg alone, an average of five to six tests are carried out every day on various models, each test taking around 2.5 hours to complete. A release form the company stated: “These controls are essential in order to ensure that effective flushing and correct functioning actually enable the efficient use of water in practice – be it in the home or at public and semi-public facilities.” Headquartered in Hornberg, Germany, Duravit AG’s product catalogue features designs by Sieger Design, Philippe Starck, Lord Norman Foster and Phoenix Design, among others.

A polyester felt used to secure wall-to-wall roll and tile carpeting has been introduced to the Middle East market at the Saudi Build trade show, held as part of Dubai’s Domotex. The product, developed by Fox and Graph international is marketed under its brand name FOXIFIX and FOXI SUPER Plus. According to the manufacturers FOXIFIX has a 2mm thick “differentiated coating technique”, with an adhesive layer on the floor side and a clinging layer for the covering side. Said to be easy to lay and remove it is marketed as suitable for residential properties, offices, hotels, exhibition booths and aisles due to its finish and sound proofing qualities. The polyester felt is used to secure wall-towall carpeting (both in tiles and rolls) and soft flooring. It is based on a brand new differentiated coating technique comprising an adhesive layer on the floor side and a clinging layer for the covering side. FOXI SUPER Plus is manufactured with fibre compounds sourced largely from recyclable materials. The anti-slip carpet foam padding also prevents rippling, therefore extending the lifetime of the flooring products it is applied to. The product is washable and available in pre-cut and bespoke formats; as well as in a range of widths. FOXIFIX® fully complies with OEKO-TEX standards. It is compatible with the Bfl-s1 fire classification certificate beneath polyamide tiles. Additionally, its use means floor coverings can be recycled and none of the products emit VOCs.

District cooling provider Qatar Cool, has won an award for increasing its coverage to cool 42 new buildings over 6,489,357 sq. ft. in 2010. The achievement makes the company one of the leading providers, supplying the highest number of buildings outside of North America in the same year. The award was presented to CEO Fayad Al Khatib and business development manager Mohannad Khader at the 102nd IDEA Annual Conference, Toronto, Canada. “This award reflects Qatar Cool’s commitment to excellence and reinforces our position as an industry leader. “Earning recognition sends out the positive message of our continuous drive for meeting and exceeding our customer’s and stakeholder’s expectations,” said Khatib. Khatib also highlighted the importance of public-private partnerships and the strong need for planning and engaging with all stakeholders early on in such large scale projects. Since its creation six years ago, Qatar Cool has won a number of contracts, including that to supply Doha’s West Bay area through two district cooling plants. The plants produce a total of 67,000 refrigerating tons of cooling and the company also owns and operates the world’s largest integrated district cooling plant, located on the Pearl-Qatar Island. Khatib also told the conference that while Qatar had one of the largest carbon footprints per head of population in the world, district cooling schemes will contribute to “significant reductions of that footprint”.

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36 tonne The weight of a tractor that hit a wall reinforced with Shoeck’s ComBAR, at 80km/h

Schoeck ME FZE

Dornbracht

Gulf Extrusions

ComBAR provided for Jubail projects

Products added to Performing Shower programme

Certified to European standards

Schoeck ME FZE has announced it will supply its ComBAR fibreglass-reinforcement bars to the Ras Az Zawr aluminium smelter project in Jubail, in the Eastern province of Saudi Arabia. The contract will see a selection of rebars supplied during the project, including straight and bent rebars and spacers. They will replace the use of conventional or stainless steel bar. The bars were specified for their non-conductivity, non-magnetic and corrosion resistance, making them ideal for the regional climate and plant. During tests conducted earlier this years, a barrier wall reinforced with ComBAR sustained the impact of a 36 tonne tractor trailer hitting it at 80 km/h. Schoeck say the wall sustained “no significant damage” “Schoeck’s rebar was specified to be installed in the slabs and foundations for the rectifiers as ComBAR components are fully non-magnetic and electrically non-conductive and therefore do not disturb the function of the rectifiers, nor does it pose any potential dangerous effects in the future,” said Christoph Spitz, managing director of Schoeck ME FZE in Dubai. ComBAR has already been used in other aluminium factories in the Middle-East such as QATALUM in Qatar and DUBAL in the UAE.The first production from the US$ 4 billion aluminium smelter and rolling mill in Jubail is expected in 2013. Schoeck ME FZE is a 100 percent subsidiary of the Schöck AG in Germany; specialising in glass fibre reinforcement bars.

Products tipped as ‘the next generation of rain showers’ have been launched by Dornbracht, as part of the family-run manufacturer’s Performing Shower programme. Main innovations in the range include the removal of pressure to mimic the natural fall of rain in the JustRain, WaterPoints and WaterFall models; the introduction of a 300 mm x 240 mm rectangular shower head; and an increase in the diameter of circular shower heads, from 200mm to between 220 mm and 300mm. All rain shower models are based on Dornbracht’s anti-lime technology and can be mounted on the wall or overhead, or combined with a free-standing shower system. The new rain shower and the hand shower are available in customary Dornbracht finishes, including: champagne, chrome, gold, platinum, platinum matte, black matte and white matte. It’s the first time Dornbracht has introduced such products to the Middle East; all products in the range are designed by Sieger Design. “With the Performing Shower programme, the emphasis is on different water forms to convey an individual new shower experience,” said managing director, Andreas Dornbracht. “We are once again affirming our company mission, the Spirit of Water through water in the form of rain, water as a clear powerful surge, water as an expansive or strongly pulsating or soft and aerated spray – the different ways we encounter water could hardly be more myriad,” Dornbracht continued. The company has said it paid particular attention to the efficiency of each device.

One of the largest aluminum extrusion plants in the Gulf region, has received the “CE” Certificate for Factory Production Control, in line with European standard EN 15088:2006. The certificate marks the achievement of minimum values for tensile strength, yield strength, elongation, fatigue Strength and bendability; also confirming the firm complies with requirements minimise hazardous emissions. Gulf Extrusion’s compliance with the standard was confirmed by a German inspection team from TUV Rheinland LGA Bautechnik GmbH, who visited the Jebel Ali factory last month. “The Certificate reaffirms our commitment to adhere to the most stringent quality standards in the production of world-class, highquality aluminium-based products,” said general manager Modar Al Mekdad, who further commented that the achievement was a “very important milestone” in the company’s expansion into worldwide markets. The inspection covered various operations of Gulf Extrusions, including continuous casting, extrusion and heat treatment of aluminium extrusion profiles. The certification also validated Gulf Extrusions’ Quality Management System, which complies with EN ISO 9001:2008 and is certified by Lloyd’s Register. “Quality and excellence have always been the major selling points of Gulf Extrusions and we will continue focus on these key attributes to consolidate our reputation as one of the world’s most trusted and respected brands in the aluminium industry,” Al Mekdad added.

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CAREER LADDER SUPPLIER | NEWS | Coryn Hellewell

“The Certificate reaffirms our commitment to adhere to the most stringent quality standards in the production of world-class, high-quality aluminium-based products”

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At this year’s Big 5 you’ll notice some big changes To ensure you spend more of your valuable time meeting suppliers relevant to you, we have: Introduced 7 product focused sectors that will allow you more time to view the products you want to see Organised over 80 free-to-attend seminars on the floor focusing on product innovation, new technology, case studies and applications Commissioned the most comprehensive product-focused report of its kind in the Middle East with a research value of $20,000 – available to pre-registered visitors who attend Launched 4 new events running alongside The Big 5 - Middle East Concrete, PMV Live, FM Expo and the Green Build Congress

21 – 24 November 2011 Dubai International Exhibition & Convention Centre

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News

Unipods president Philippe Akl reveals the secret to safe and speedy fit outs

ou’re on site working on a new contract that demands numerous high quality bathrooms to be fitted at speed. The record-breaking time will knock up to three months off the fit out period of the project, but how can it be achieved? Unipods president Philippe Akl has the answer; like hotel rooms, coffee and even peas before them, the latest item to be delivered via pod is the bathroom. The off-site construction technology specialist supplies high quality prefabricated bathrooms, kitchens and commercial washroom solutions, that have been designed in collaboration with the customer to produce the perfect pod for the project. The company works to an eight-step process, which goes from design concept to installation and the product catalogue features bathroom pods, Uniboards and Unikitchens. “Pod construction runs in parallel with onsite construction and ensures that delivery is both quick and timely. This results in significant time savings and can shorten on site construction time by as much as two to three months, giving a quicker ROI for the investors and end users,” Akl explains, adding the method is also cost effective as it reduces insurance premium due to enhanced health and safety on site. Additionally there is only one point of contact as pods are designed and built prior to onsite installation. Pods are lifted into place with cranes, the utilities are connected and they are ready for use. “Our experienced installation team can install many pods per day. JIT deliveries optimise crane use and onsite installation time. Night installations can also free up day time crane time for other tasks. One point of contact from design through to installation saves time,” he continues. Working with the customer to produce the perfect pod for the project, the company works to an eight-step process, which goes from design concept to installation; the product catalogue features bathroom pods, Uniboards and Unikitchens.

Bespoke

Initially liaising with the project parties to specify the sanitary ware and finalise layout, each pod is designed “according to the architect’s

drawings”, and approved by the client via prototype before large scale production begins in the Ras Al Khaimah factory. “All tools, anchors and adhesives are sourced from top quality suppliers and applied under the right conditions to optimise performance,” Akl adds. Further steps take in quality checks and delivery of the fully fitted pods, upon which each can be installed vertically or horizontally, depending on the structure of the building. While it is the responsibility of the M&E contractor to connect the pod to utilities pipes, Unipods staff can assist. “Unipods are the perfect solution for hotels, residential, commercial buildings, schools, hospitals, stadiums and villa developments. They improve quality while increasing the efficiency and profitability of construction projects. “A full turnkey bathroom solution – manufactured off-site and tailor made to the client’s specifications – the pod is a pre-engineered, pre-fitted, ready-plumbed bathroom,” Akl continues. Complementing the bathroom designs, Unipods has also developed the Uniboard, individual modular wall panels, rather than entire rooms, with sanitary ware, flushing systems, and taps and fittings pre-installed. The product is based on the pre-plumbed modular system (PPMs) currently used in Europe, PPMs are preassembled in the factory, fitted with access panels, sanitary ware, flushing systems and

brassware and delivered to site ready for simple installation. The third product, the UniKitchen, is manufactured in collaboration with British-based Grange Interiors at a 55,000-square foot facility, also based in Ras Al Khaimah. Akl says the concept further promoted the company’s ethic to improve the efficiency, quality and profitability of construction, “by implementing off-site construction technology in key areas of the homes and buildings”. As part of holding group, the Al Rajhi Investment Group, Unipods is one of a number of companies contributing towards the groups aim to be among the top five business development groups in the GCC in five years, across five segments. The company works out of offices in Jeddah, Riyadh and Ras Al Khaimah. “Certainly Saudi Arabia is the strongest market right now and there are two dimensions to this; speed is one dimension but the other is the nature of projects. With so much focus on supplying affordable housing within tight deadlines Unipods are perfectly designed to meet all these needs,” Akl says.

Unipods will exhibit at The Big 5, held at Dubai World Trade Centre next month.

Timeline

2-4 weeks Prepare Customer drawings based on architect’s drawings 1-2 week Approval and sign off of Customer drawings (by Client) Full Design freeze (design and specification not to change)

ABOVE: Monique Campbell.

Purchase start up on long lead-time, project specific items 2-3 weeks Prepare production drawings Order short lead-time project specific items 3-4 weeks Production of reference pods

ABOVE: President Philippe Akl.

“Unipods improve quality while increasing the efficiency and profitability of construction projects”

SUPPLIER HOTSEAT | UNIPODS

Room in a box

8 weeks Production of bathroom pods 10-12 weeks Total time from Design freeze to 1st delivery depending on number of pods and variants 14 weeks Total time from agreed specification to 1st delivery

www.thebigprojectme.com | 83

CAREER LADDER | Prakash Mahadalkar

Service provider After his “instrumental” role in some of Dulsco’s largest developments, newly appointed MD Prakash Mahadalkar talks about the move from finance director to head of the company

rakash Mahadalkar has over 37 years of experience in leading global shipping and logistics businesses, holding positions in companies such as Rallis India (Mumbai), Sea Land Service Inc. (India and the Middle East), Maersk Line and Mitsui Shipping (India). In 2003 he joined Dulsco as director of finance and has since been credited with growing the company’s footprint across the region, overseeing operations in Qatar and the UAE. Having led the finance department under the overall leadership of his predecessor John Neale for more than eight years, Mahadalkar recalls witnessing “tremendous growth” across all sectors Dulsco has chosen to pursue. “The finance department is one of the pillars of Dulsco and helps the company to remain costefficient and trim down unnecessary expenditure,” Mahadalkar says, explaining it is the reason the company sustained and remained profitable during the downturn. “My involvement with the finance department of Dulsco has helped me to weigh each project carefully and prioritise the most suitable strategic imperatives for the company’s long-term growth,” he adds. The strongest example of such evaluation came when Dulsco changed its legal status from partnership to limited liability company; with Mahadalkar “instrumental” to the successful execution. Other growth involved establishing operations in Abu Dhabi and the construction of Dulsco Village as well as the setting up of of Dulsco Qatar joint venture. Employing 5000 people, today the company spans operations in HR, waste management, general trading, marine and tank

84 | www.thebigprojectme.com

Prakash Mahadalkar , Dulsco MD

”My involvement with the finance department of Dulsco has helped me to weigh each project carefully and prioritise the most suitable strategic imperatives for the company’s long-term growth” services, medical provisions, IT , engineering and property services and automotives. Dulsco also holds management system certifications ISO 9001:2008 for Quality, ISO 14001:2004 for Environment and OHSAS 18001:2007 for Health and Safety. But far from taking the corporate approach associated with such diversified and extensive business models, Mahadalkar maintains Dulsco’s USP is its approach to community. “While we are acknowledged as a key player in the region’s economic development, we continue to encourage community development and are actively involved with the local communities we operate in,” he asserts, recalling the free health checks for lifestyle diseases, health and

environmental awareness campaigns the company has run in the past. For Dulsco, and Mahadalkar, the future is about innovation; not only in the HR and waste management sectors already established, but in the active pursuit of recycling and waste-toenergy related projects in the UAE. “I am very enthusiastic about taking up my new role at Dulsco, a company that has recorded excellent performance over the past 76 years and I hope to boost its profile even further. “Dulsco has an excellent service portfolio with core competencies in HR Solutions and Waste Management Services. It is a privilege to be leading the company and accelerate its growth even further,” Mahadalkar said.

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Project name: Al Khor Mall Project

Project number: OPR470-Q Territory: Qatar Client: EMKE Group (Abu Dhabi) City: Abu Dhabi Postal/ ZIP: 4048 Phone: (+971-2) 642 1800 Fax: (+971-2) 642 1716 Email: headoffice@ae.lulumea.com Web: http://www.emkegroup.com Description: Construction of Al Khor Mall covering a total built-up area of 72,000 square metres from a 55,000 square metre area, consisting of a ground floor, first floor and a parking area for over 1,100 vehicles.

Budget: 55000000 Period: Status: New tender Remarks: This project will be located in the densely populated residential area at Al Khor in Qatar. UAE-based Rubber World Industries (RWI) has been awarded an estimated $11,000 contract to supply rubber insulation and adhesive products for this development. RWI will provide rubber insulation tubes and tapes that are environmentally friendly, cost effective and ready to use with minimal wastage. Local Arab Engineering Bureau has been appointed as the mechanical, electrical and plumbing (MEP) consultant. MEP consultant: Arab Engineering Bureau (Qatar) Rubber supplier: Rubber World Industries L.L.C (Ajman) Tender categories: Housing projects, leisure

Project name: MPP2379-Q

Project number: Qatar Foundation Headquarters Building Project - Qatar Education City Territory: Qatar Client: Qatar Petroleum Address: City: Doha Postal/ ZIP: 3212 Phone: (+974) 4440 2000 Fax: (+974) 4483 1125/ 4449 1400/ 4483 1995 Email: contracts.services@qp.com.qa Web: http://www.qp.com.qa Description: Construction of a 57-metretall, cube-shaped building with 14 levels

above ground, including a three-fourstorey strategic studies centre, as part of the headquarters development for Qatar Foundation.

Budget: 220000000 Period: 2013 Status: Current project Remarks: This project will be located at Education City on the outskirts of Doha. The scheme is being managed by Qatar Petroleum on behalf of the Qatar Foundation for Education Science & Community Development. The overall site will have 500 parking spots. Local Midmac Contracting Company has been awarded the main construction contract on this project. The contract is for a period of two years. The contractor will also carry out landscaping, earthworks, substructure and utility works, including installation of water services, drainage, air-conditioning and security systems. Main Architect: Office for Metropolitan Architecture - OMA (Netherlands) Main consultant: Arup (Qatar) Project manager: Astad Project Management (Qatar) Main contractor: Midmac Contracting Company (Qatar) Tender categories: Prestige buildings

Project name: World Trade Centre Tower Project

Project number: MPP1845-Q Territory: Doha Client: Qatar General Insurance & Reinsurance Company S.A.Q City: Doha Phone: (+974) 4428 2222 / 4441 7800 Fax: (+974) 4443 7302 Email: qgirc-tec@qatar.net.qa Web: http://www.qgirco.com Description: Design and construction of a 50-storey office tower, including a six-storey building shaped in a sphere, to house an auditorium and business centre and a low-rise building for a convention centre.

Budget: 275000000 Period: 15/06/2012 Status: Current project Remarks: This tower will be located close to the Doha Convention Centre & Tower (DCCT) project on Doha Corniche in Qatar and cover a total built-up area of 140,000 square metres. UAE's Arabtec

Construction has been appointed as the main contractor. The project is expected to be completed in summer Main consultant: Architectural & Engineering Consultants - ARTEC (Dubai) Project manager: Projacs International (Qatar) Main contractor: Arabtec Construction W.L.L (Qatar) Tender categories: Prestige buildings

Project name: Substations construction project Project - Qatar Power Transmission System Expansion - Phase 10 (Stage 2)

Project number: ZPR406-Q Territory: Qatar Client: Qatar General Electricity & Water Corporation (Kahramaa) Address: Corniche Street, Dafna Area City: Doha Postal/ ZIP: 41 Phone: (+974) 4484 5484/ 4484 5555 Fax: (+974) 4484 5496 Email: kmcontact@km.com.qa Web: http://www.kahramaa.com.qa Description: Engineering, procurement and construction (EPC) contract to build 220/132/66kV gas-insulated switchgear (GIS) substations, as part of the Qatar Power Transmission System expansion Phase 10 - Stage 2. Period: 2014 Status: New Tender Remarks: This project is in Qatar. The purpose is to enhance the electricity transmission network in the country. Scope of work involves construction of: - 220/132/66kV GIS substations - Power transformers - Protection and substation automation system, including DC system and auxiliaries. Evaluation of bids is currently underway for the technical consultancy and EPC contract. Awards are expected in the fourth quarter of 2011. Tender categories: Power generation & distribution

Project name: Barwa Al Khor City Project

Project number: OPR471-Q Territory: Qatar Client: Barwa Al Khor Company (Qatar) Postal/ ZIP code: 27777 City: Doha Phone: (+974) 4499 8888 Fax: (+974) 4499 8801 Description: Development of Barwa Al Khor city comprising villas and

News

Qatar

XXXXXXXX MENA PROJECTS | XXXXXXXXXX | TENDERS

TENDERS

The latest tenders and project updates for developments in MENA region

townhouses, terraces, flats and mixed-use areas, 2 sprawling hotels - one being a five-star and the other four star, a superior shopping mall, 4 top schools, 250,000 square metres of office space, a mosque and an international golf course, including amenities such as a clinic, library, information centre, public and private beaches.

Budget: 8000000000 Period: 2015 Status: New tender Remarks: This project is in Qatar and will cover an approximate area of 5,459,168 square metres. The scheme anticipates offering 24,114 units as homes to the elite with 5-star quality services to surround them. The development will showcase fine architecture that merges unobtrusively with the beautiful environment. The developing homes are set to accommodate a massive population of 60,000 people. The location of the site will offer a panoramic view of the city of Al Khor. A marina has been exclusively built in to the project in order to celebrate the natural harbour that Al Khor possesses. In order to uphold the client's commitment to offer 360 degree solutions to those who occupy living spaces designed and built by them, they have also provided a range of sporting facilities in the scheme. UAE-based Rubber World Industries (RWI) has been awarded an estimated $11,000 contract to supply rubber insulation and adhesive products for this development. RWI will provide rubber insulation tubes and tapes that are environmentally friendly, cost effective and ready to use with minimal wastage. Local Urban Planning & Design Authority (UPDA) has been appointed as the mechanical, electrical and plumbing (MEP) consultant. MEP consultant: Urban Planning & Design Authority - UPDA (Qatar) Rubber supplier: Rubber World Industries L.L.C (Ajman) Tender categories: Hotels, housing projects, leisure

Project name: Doha Festival City Development Project

Project number: MPP2455-Q Territory: Qatar Client: Al-Futtaim Group Real Estate (Dubai) Address: Dubai Festival City, Al Rashidiya Area

ESTIMATING AND PROJECT CONTROL www.thebigprojectme.com | 87

MENA PROJECTS | TENDERS

City: Dubai Postal/ ZIP: 159 Phone: (+971-4) 213 6213 Fax: (+971-4) 232 5550 Email: af.realestate@alfuttaim.ae Web: http://www.afrealestate.com Description: Development of Doha Festival City comprising a retail centre, an entertainment park, two hotels and an auto park made up of car showrooms.

Budget: 1600000000 Period: 2014 Status: New tender Remarks: This project is in Qatar. The multi-use scheme will be built on the northern highway, which will link Doha International Airport with the proposed Bahrain Causeway. The complex will cover a total area of 433,000 square metres, while construction will be divided into three phases. Brands set to open stores in this development include IKEA, Marks & Spencer, Toys R Us, Ace Hardware, Intersport and other major regional retailers. Client has invited contractors to pre-qualify for construction work on this scheme. Client along with local Qatar Islamic Bank are due to complete the financing in October 2011. The sponsors are currently raising in excess of $825 million from a group of Qatari banks to fund the development of this project. The financing will be structured as a Shariacompliant deal. QInvest, a local investment bank, is leading the fund-raising for the project along with the client's investment and development arm, Al-Futtaim Capital. The scheme will be developed in three phases, with the IKEA store developed first, followed by the main shopping mall complex, then some hotels. Most of the project is due to be completed by 2014. The funding being raised now will be used to cover all three phases of the development's construction. A contractor for the main construction package is due to be appointed later this month. Main Architect: Arab Engineering Bureau (Qatar) Design consultant: DP Architects Pte. Ltd. (Singapore) Project manager: Mace Limited (UK) Financial consultant: Qatar Islamic Bank - QIB (Qatar) Project manager: EC Harris (UK) Main architect 1: Brewer Smith Brewer Gulf (Dubai) Research and marketing consultant: Portland Design Associates (UK) Engineering consultant: WSP (UK) Research and marketing consultant: Coverpoint Catering Consultancy (UK) Tender categories: Housing projects, hotels, leisure

UAE Project name: Fujairah City Centre Project

Project number: ZPR183-U Territory: Northern Emirates Client: Majid Al-Futtaim Group (Dubai) Address: Majid Al Futtaim Tower, Deira City Center City: Dubai Postal/ ZIP: 60811 Phone: +971-4 294 9999 / 294 2444 Fax: +971-4 209 3499 Email: inquiry@mafgroup.co.ae Web: http://www.majidalfuttaim.com Description: Construction of Fujairah City Centre comprising a new shopping mall, including a 22-storey hotel, an ice rink, 6 cinemas and more than 100 outlets.

Budget: 116000000 Period: 2012 Status: Current project Remarks: This project will be strategically located at the intersection of the new Fujairah - Dubai highway and the existing Masafi highway at the entrance of Fujairah City. The centre will add a new touristic attraction to Fujairah's map bringing a wide group of leading international brands such as Carrefour and Centrepoint. Local Commodore Contracting Company has been appointed as the main contractor. Work has commenced on this development, with the foundation stone being laid. The project is set for completion in second quarter of 2012. Local Khansaheb Civil Engineering has been awarded a $68 million contract to build the shopping mall in this development. Scope of work involves construction of a singlelevel mall, with a total built-up area of approximately 50,000 square metres. The mall will include about 100 shops, food courts and restaurants. It will also include car parking for about 1,000 vehicles. Fujairah City Centre is a LEED registered project, currently targeting a Gold LEED rating under the USGBC Green Building guidelines. Upon completion, it is expected to be the first retail development to attain this rating in the Emirate of Fujairah. Main Architect: Architectural Consulting Group - ACG (Abu Dhabi) Main contractor: Commodore Contracting Company L.L.C (Abu Dhabi) Main contractor 1: Khansaheb Civil Engineering (Dubai) Tender categories: Housing projects, leisure, hotels

Project name: ADNOC Headquarters Complex Project

Project number: MPP1176-U Territory: Abu Dhabi Client: Abu Dhabi National Oil Company (ADNOC) Address: Next to Hilton Hotel, End of Corniche Road City: Abu Dhabi Postal/ ZIP: 898 Phone: (+971-2) 602 0000/ 602 3266 Fax: (+971-2) 602 3389 Email: info@adnoc.com Web: http://www.adnoc.ae Description: Design and construction of a new headquarters complex for ADNOC comprising a 342-metre-high, 65-storey office tower, podium, basement and underground parking areas, as well as a tunnel connecting the office tower with the underground parking

Budget: 490000000 Period: 15/05/2013 Status: Current project 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. 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 1,575 parking spaces. The project is situated underneath the public park near ADNOC headquarters and will take two years to complete. Main Architect: HOK International (Dubai) Main consultant: Halcrow International Partnership (Abu Dhabi) 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) Tender categories: Prestige buildings

Project name: Hassyan 1 Independent Power Project

Project number: OPP342-U Territory: Dubai

ESTIMATING AND PROJECT CONTROL 88 | www.thebigprojectme.com

Client: Dubai Electricity & Water Authority (DEWA) Address: Head Office, Near Wafi Shopping Mall, Zabeel East City: Dubai Postal/ ZIP: 564 Phone: (+971-4) 324 4444 Fax: (+971-4) 324 8111 Email: contracts@dewa.gov.ae Web: http://www.dewa.gov.ae Description: Design, development, financing, construction and operation of a green-field, gas-fired Hassyan 1 Independent Power Project (IPP) with capacity of 1,500 megawatts (MW) together with associated infrastructure. Closing date: December 12 2012 Period: 2014 Status: New tender Remarks: This project will be located on the Arabian Gulf Coast at a fully prepared site in Hassyan, approximately 50 kilometres from the city of Dubai, adjacent to the border with the Emirate of Abu Dhabi. It is understood that the client has pre-qualified (18) developers to bid for a contract to build and operate this IPP. The pre-qualifiers include Saudi Arabia's ACWA Power; Korea Electric Power Company (Kepco), Samsung Engineering; US' GE International; Malaysia's Malakoff International; Japan's Marubeni Corporation, Mitsui, Sumitomo Corporation, Sojitz Corporation; Qatar's Qatar Electric Power Company; Singapore's Sembcorp Utilities; Belgium's Suez Tractebel; UAE's Abu Dhabi National Energy Company (Taqa), Oasis International Power; Kuwait's Kharafi National; India's Lanco Infratech, Tata Power Company; and UK's United Infrastructure Developers Company. Several companies have pre-qualified on the condition that they partner with another company to bid for the project. Client has extended the deadline to submit bids for the main contract from the previous deadline of October 18, 2011 at the request of prospective developers and after having made sure that there won't be any adverse effect on the project. Client is talking with several export credit agencies about financing this scheme. The advisers on the project have already met with Japan Bank for International Cooperation (JBIC) and the Export-Import Bank of Korea (Kexim). It is understood that as long as the project structure is bankable and feasible, with substantial involvement from Japanese companies, JBIC will consider providing them with financial support for the project. Kexim is also understood to be considering helping South Korean companies bidding on this scheme. Client is aiming to sign a power purchase agreement (PPA) with a preferred bidder in January 2012 and reach financial close in the first half of 2012.

Saudi Arabia Project name: King Abdullah Sports City Project

Project number: MPP2367-SA Territory: Saudi Arabia Client: General Presidency of Youth Welfare (Saudi Arabia) City: Jeddah Postal/ ZIP: 15667 Phone: (+966-2) 667 2145 Fax: (+966-2) 669 5492 Email: Construction of King Abdullah Sports City covering an area of 9 square kilometres featuring a main stadium with capacity of 60,000, together with at least five other smaller sporting arenas, including a specialist hospital for sporting injuries, a number of indoor arenas and accommodation facilities.

Budget: 4000000000 Period: 2013 Status: Current project Remarks: This project will be located around 60 kilometres north of Jeddah alongside the Mecca-Medina highway in Saudi Arabia. Belgium's Besix Group, with its joint venture partner Al Muhaidib Contracting Company, has been awarded a $520 million contract to build the stadium in this development. Arup Gulf (Dubai) Main contractor: Besix Group SA (Belgium) Main contractor 1: Al Muhaidib Contracting Company (Saudi Arabia) Tender categories: Medical, bridges, public works, roads & earthworks, housing projects, leisure

Project name: Burj Rafal Mixed-use Project

Project number: MPP2361-SA Territory: Saudi Arabia Client: Rafal Real Estate Development Company Ltd. (Saudi Arabia) Address: 9th Floor, Tatweer Tower, King Fahd Highway (Southbound), Almohammadeyyah District City: Riyadh 11547 Postal/ ZIP: 69290 Phone: (+966-1) 200 8333 Fax: (+966-1) 200 9393 Email: info@rafal.com.sa

Web: http://www.rafal.com.sa Description: Development of Burj Rafal mixed-use scheme comprising a 62-storey tower consisting of 260 luxury apartments on 23 floors; a 2,000-person-capacity ballroom and 24 meeting rooms on one floors; a 297-room Kempinski Hotel and 54 serviced apartments over 17 floors; office space, which will occupy 13 floors; two wellness spas on one floor; and 6,000 square metres of retail space on the building's podium.

Budget: 800000000 Period: 2013 Status: Current project Remarks: This project will be developed on a site of 22,000 square metres in the northern Assahafa district of Riyadh. UAE-based Dubai Contracting Company (DCC) has been appointed as the main contractor on this scheme. Construction work is ongoing. The project is expected to be completed in second quarter of 2013. Main consultant: Rider Levett Bucknall Consultants (Saudi Arabia) Project manager: Palmer & Turner Architects & Engineers Limited (Dubai) Project manager: International Projects Management (Dubai) Wind surveyor: Windtech (Dubai) Main contractor: Dubai Contracting Company L.L.C. (Dubai) Tender categories: Hotels, leisure, prestige buildings

Project name: Business Hotel Project-1

Project number: OPP360-SA Territory: Saudi Arabia Client: Shuaa Capital (Saudi Arabia) Address: Dareen Center, 2nd Floor, Al Ahsa Street, Malaz City: Riyadh 11482 Email: ksasales@shuaacapital.com Web: http://www.shuaacapital.com Descriptions: Construction of a 254 room budget business hotel

Budget: 43000000 Status: New Tender This project is in Jeddah and will cover a built-up area of approximately 12,000 square metres. Client has recently completed the acquisition of a prime plot of land through its hospitality fund for the development of this hotel, which will be managed by Rotana Hotel Management Corporation Tender categories: Hotels, housing projects

Project name: Riyadh PP10 Power Plant Conversion Project

Project number: MPP2469-SA Territory: Saudi Arabia Client: Saudi Electricity Company - Central Region (Saudi Arabia) Address: Burj Al Faisaliyah Bldg., Floor 22, King Fahad Road City: Riyadh 11416 Postal/ ZIP: 22955 Phone: (+966-1) 461 9030 / 461 9009 Fax: (+966-1) 403 2222 Email: informus@se.com.sa Web: http://www.se.com.sa Description: Build, own and operate (BOO) contract for the conversion of 3,400MW PP10 simple-cycle power plant to a combined-cycle facility by adding 1,300MW of capacity.

Budget: 1000000000 Period: 2014 Status: New tender Remarks: This project is located at a site 80 kilometres west of Riyadh in Saudi Arabia. It involves converting five blocks (A1, A2, B1 & B2 and C1) from simple-cycle to combined-cycle. The expansion will comprise (10 Nos.) steam turbine generators, (40 Nos.) heat-recovery steam generators and (10 Nos.) air-cooled condensers. Six companies have submitted commercial bids for the EPC contract. They include: Local Arabian Bemco - $1.434 billion - Spain's Tecnicas Reunidas - $1.484 billion - South Korea's Hyundai Heavy Industries $1.485 billion - Japan's Marubeni and South Korea's Hyundai Engineering & Construction - $1.648 billion - US' Black & Veatch and Saudi Arabia's National Contracting Company - $1.998 billion - South Korea's Doosan Heavy Industries - $2.592 billion. Tender categories: Power generation & distribution

Oman Project name: Fort Hotel Project

Project number: OPR496-O Territory: Oman Client: Oman Tourism Development Company S.A.O.C (Omran) Address: Muttrah PC 114 Postal/ZIP Code: 479 Phone: (+968) 2477 3700 Fax: (+968) 2479 3929 Email: enquiries@omran.om Web: http://www.omran.om Description: Development of five-star Fort Hotel comprising (120) suites as well as six spa suites and eight luxury villas, including a host of high-end restaurants, spa and leisure facilities and a 100-seat

amphitheatre Period: 2014 Status: New tender Remarks: This hotel will be located about 25 kilometres southeast of Muscat International Airport and 3 kilometres from Al-Khuwair in Oman over an area of 12 hectares. To be managed by Ritz Carlton, the five-star hotel will expand the range of tourist offerings available away from the beach resorts currently available in the Sultanate. The design will be inspired on Oman's heritage and culture, and based on the forts in Oman. It will provide high-quality facilities not only for tourists but for locals as well. It is understood that 22 companies have so far registered interest in the earthworks package on this development. Companies that have evinced interest include Carillion Alawi, Sarooj Construction, Galfar, Taylor Woodrow Towell and Tarmac Zawawi. The project is expected to be completed by end of 2014. Project manager: Beca International Consultants (New Zealand) Quantity surveyor: Baker Barton & Lawson (Oman) Tender categories: Hotels, housing projects, leisure

Iraq Project name: West Ramadi Phosphate Chemical Complex Rehabilitation Project Phase 1

Project number: ZPR396-IQ Territory: Iraq Client: State Company for Phosphate Address: Sadoon Street, East Gate City: Baghdad Postal/ ZIP: 5954 Phone: (+964-1) 887 3027 / 888 9708 / 888 9709 Web: http://www.scpiraq.com Description: Carrying out rehabilitation of the phosphate chemical complex, west of Ramadi, with capacity of 480,000 tonnes a year (t/y) of fertilizer and 240,000 t/y of phosphate.

Budget: 320000000 Period: 2015 Status: New tender Remarks: This project is in Iraq and will be developed in two phases. The plant will cover an area of 220,000 square kilometres. It is understood that the scheme is still under planning. A decision to launch the project is expected to be taken in second quarter of 2012 by the Iraqi Ministry of Industry & Minerals. Tender categories: Industrial & special projects

ESTIMATING AND PROJECT CONTROL www.thebigprojectme.com | 89

MENA PROJECTS | TENDERS

Financial consultant: HSBC Bank Middle East Limited (Dubai) Legal consultant: Clifford Chance Legal Consultants (Dubai) Technical consultant: Mott MacDonald Ltd. (Dubai) Tender categories: Power generation & distribution

22-25 APRIL 2012 Jeddah Centre for Forums & Events Co-located with

Saudi Building & Interiors Exhibition

BOOK YOUR STAND NOW! With over 20,000 sqm of space showcasing: Crawler Cranes, Mobile Cranes, Tower Cranes, Graders, Loaders, Compressors, Crushers, Fork Lifts, Skid Steers, Piling Rigs, Excavators, Access Platforms, Bull Dozers, Concrete Pumps, Cement Mixers, Grabs, Trucks, Material Handling Equipment, Front Shovels, Cherry Pickers, Rollers, Communication & Navigation Systems, and more... Contact Us +971 4 440 9129 info@constructionmachineryshow.com

The regionâ&#x20AC;&#x2122;s largest heavy equipment exhibition The Construction Machinery Show will be the largest heavy construction machinery event in the region. There will be a wide variety of products on show ranging from heavy equipment to machinery and generators including service providers. There are plans of a live auction and demonstration area for visitors to get a real idea of the capabilities of the equipment. This event is dedicated to the construction machinery sector and will provide an invaluable platform for customers in the Arab world bringing manufacturers, distributors and buyers together. In 2012 the Construction Machinery Show will be co-located with the Saudi Building & Interiors Exhibition. SBIE is an ideal business platform to find out about the latest building and interiors industry developments, assess the competition and network with specialist contractors, equipment and material suppliers, as well as solution providers. We will be in Jeddah next April. Will you?

Find out more. Visit www.constructionmachineryshow.com The Construction Machinery Show and Construction Machinery Middle East and their entities are registered trademarks. The Construction Machinery Show is held alongside the Saudi Building and Interiors Exhibition under the patronage of the Saudi Ministry of Municipal and Rural Affairs. ÂŠ 2011 Corporate Publishing International. All rights reserved.

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Global stats

$312 bn Value of investments planned by Opec countries by 2015

$142 bn Value of road and bridge projects in the GCC

1100 Projects initiated for regeneration of Kuwait

3.5m Shortage in units of affordable housing in MENA region

Amman, Jordan: October 3-6 The only event in Jordan for construction, building materials, interior design and decorations industry, and an engineering and trading event covering all engineering sectors: Construction, Consultancy, Architecture, Electrical, Mechanical and Chemical Divisions.

The Forum & Exhibition Libya

Tripoli, Libya: October 10-12 Dedicated to construction, equipment and decoration items and organised by Waha Expo. Products will include exterior decorative materials, flooring, roofing, doors and opening parts, rire prevention and more.

The Tourism Investment & Real Estate Development Aleppo

Aleppo, Halab, Syria: October 14- 18 Highlighting the efforts presented by the Syrian government and other Institutions specialised in tourism investment and real estate to activate the sector. More than 58 companies will take part in the event, organised by Al Haitham Exhibitions and Conferences.

Qatar International Environment Protection Exhibition

Doha, Qatar: October 16-18 ecoQ is a multi-sector environment trade fair addressing advancements in environment protection technologies, sustainable energy and green business practices applied towards a more sustainable future. An excellent opportunity and a unique

Saudi Build

Riyadh, Saudi Arabia: October 16-19 Saudi Build is one of the leading trade shows that provides unique and comprehensive business solutions to real estate contractors and agents, developers, as well as those who own housing properties.

Greenbuild International Coference & Expo

Toronto, Canada: October 4-7 An opportunity to expand your business presence in the rapidly growing green building industry. The industryâ&#x20AC;&#x2122;s premier event, Greenbuild brings together professionals from across the industry and around the world.

SAIE-International Building Trade Fair Bologna, Italy: October 5-8 One of a number of related shows in Italy this month, SAIE-International building exhibition is one of the best forums that enable comprehensive discussions on building solutions, projects and technologies for building architecture.

Real Estate World Congress

Mumbai, Maharashtra, India: October 7-8 Thought leadership conference with visionary keynotes and panel discussions; an exhibition with top companies displaying the solutions that will define the real estate future and an awards ceremony highlighting the Indiaâ&#x20AC;&#x2122;s most innovative projects and initiatives.

Turkeybuild Izmir

Izmir, Turkey: October 13-16 Turkeybuild benefits from the economic growth and the inflow of foreign capital and is regarded as a very promising market. It is growing rapidly, and numerous projects in the field of road construction, house building and the construction of office premises are planned.

INTERBUILD

Birmingham UK: October 17-19 A place to share best practice, inform on new product development and review technological advancements.

Yapex Build

Antalya, Turkey: October 27-30 The primary fair for building materials and construction technologies. Over 30,000 worldwide visitors are expected with more than 400 exhibitors.

www.thebigprojectme.com | 91

DIARY | INDUSTRY EVENTS

OCTOBER

YOUR SHOUT | CITYSCAPE 2011

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Your Shout The Big Project asked exhibitors at CityScape for their observations on the market and their aims for this year’s event Bahman Sotoudeh marketing and sales global King Technologies

“We knew from the beginning that this would not be the place to just come to and sell. What we have to do is make an awareness in the market that ‘Discovery’ is ready for handover and also build the brand. “The property market is totally different from the trading market; It is all cycles and dynamics, so now the market is down but it is the right time for the real developers to come to the market.”

Trevor Collin Property broker, Elysian

“There are a lot of sellers here. We have a project in Abu Dhabi that we are selling and we have got some really good leads from the exhibition. We have 35 units to sell in one tower and ideally we want to sell them all, but if we sell a third we’ll be really happy. “I think the market will increase slightly, rentals are going well and there is a huge demand coming from the UK and Europe, so prices are going up about 5% at the moment.”

Mark Young Young Design

“We’re aiming to meet up with our old contacts and remind people we are still here. A lot of people who came here a few years ago have

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found it hard since and have left the UAE. We are still here and have been working for 20 years in Dubai and the surrounding area. “We are seeing cautious optimism in the market; last year there was cautious optimism and we got potential leads but no contracts, so this year we are hoping there may be a lot more reaction from people. It is hopeful so far because contacts from previous years remember us but are still dependent on finance for their projects to take off.”

Tahir Kameli executive director Chicagoland

“This exhibition is much smaller than previous years and that reflects the world economy, but at the same time it shows that not many people are looking at real estate as a good investment anymore. We have learned over the last two years that real estate prices can come down and not many people expected that, but this is a good event and we are looking to attract foreign investment to the United States.”

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