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Olivier Crasson EVP, BESIX/Six Construct
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e expect a general slowdown in activity in 2017 compared to 2016, mainly due to the level of the oil price which will have an effect on all industries. However, due to a number of strategic projects such as Dubai Expo 2020, we will focus our attention on the larger projects as the necessary infrastructure work will continue to develop in order to be ready on time. The Qatar World Cup 2022 is obviously also an important driver. In general, all our projects are considered to be a challenge as such, due to their inherent complexity. However, if we have to identify a specific challenge, it would be to make sure that our payments are received on time, but we trust that a follow up and a dialogue with our partners will help us to overcome these challenges if they occur. Infrastructure and environmental projects in the broad sense are where we believe opportunities will come. We also see prospects in transport, health, sport, leisure and tourism. Alternative financing such as export finance and private-public partnerships (PPP) as new procurement mechanisms will become more popular in the region. Furthermore, there is a definite trend towards privatisation in a number of GCC countries, but the process is logically longer, as we will have to see how this materialises in 2017 and beyond.
Senan Al Naboodah MD, Al Naboodah Construction
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l Naboodah Construction Group (ANCG) has significant private sector orders in the pipeline for the first quarter of 2017, the majority being real estate sector clients, the sector which is providing the best opportunities for us. We did not see a significant decline in the number of tenders issued in 2016 and do not predict a decline in 2017. The biggest challenge in 2017 for the industry will be managing project financing and payment delays. ANCG has successfully avoided these through careful assessment of the projects we work on, and the financial security of who we partner with. We are extremely selective with RFP participation and diligently ensure the projects we pitch for are financed securely. Equity partnerships, joint ventures and public private partnerships are a trend we expect to be embraced in the coming years across the industry. We have implemented innovative and flexible pricing structures with our clients to take account of continuing fluctuations in commodity prices. In 2017, we will continue to embrace industry best practice in technology with our in-house BIM modelling team and our use of robotics saving time and manpower and creating savings for our clients. Our heritage is firmly in the UAE, but we will continue with expansion plans in the GCC and East Africa in 2017. We are pleased with the state of our order book for 2017, putting us in a strong position to start the New Year.
Our strategy is aimed at carefully We have implemented innovative and selecting critical, complex projects and flexible pricing structures with our programmes with established key clients clients to take account of continuing who need a long-term partner fluctuations in commodity prices 32 construction business news me January 2017