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May 2017

THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS

Event Review Construction Innovation Forum 2017 draws big names

The Future of Road building

“Embrace technology or be left behind”

Project Update Qatar progresses 2022 FIFA World Cup stadiums

Thinking

Mohammed Jafer Musthafa dreams of making Daemaar Group one of the top companies in the Middle East. We design.. we construct.. we build.. Kingdom of Saudi Arabia, PO Box 65697 Riyadh 11566 Tel: +966 11 293 1193 Fax: +966 11 293 1170 www.albawani.net

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On the web Keep up to date with all the latest news, features and much more on our website. www.cbnme.com

// contents 8 10 18 20 22 24

May 2017 // Issue #27

Editor’s note News Appointments Contracts Comment Event Review

Construction Innovation Forum 2017

28 Cover Story

Interview with Mohammed Jafer Musthafa, MD and Founder of Daemaar Group

32 Project Update

Construction progresses on Qatar’s World Cup stadiums

construction business news me // May 2017 //

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CEO Wissam Younane wissam@bncpublishing.net Managing Director Walid Zok walid@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Group Publishing Director Diarmuid O'Malley dom@bncpublishing.net Group Sales Director Joaquim D'Costa jo@bncpublishing.net +971 50 440 2706

Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net +966 50 328 9818

Editor Jason O'Connell jason@bncpublishing.net Art Director Aaron Sutton aaron@bncpublishing.net Sales Manager Vishvanath Shetty vish@bncpublishing.net +971 52 6745378

Marketing Executive Mark Anthony Monzon mark@bncpublishing.net

SUBSCRIBE subscriptions@bncpublishing.net

36 In Person

Interview with Larsen & Toubro

41 Machinery & Vehicles 48 The future of roadbuilding

58 62 64 66 6

Supplier News Event Review Save the Date Editor’s Pick

// construction business news me // May 2017

PO Box 502511 Dubai, United Arab Emirates P +971 4 4200 506 | F +971 4 4200 196 For all commercial enquiries related to Construction Business News ME contact sales@bncpublishing.net T +971 55 339 5097 All rights reserved Š 2015. Opinions expressed are solely those of the contributors. Construction Business News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Construction Business News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Images used in Construction Business News ME are credited when necessary. Attributed use of copyrighted images with permission. All images not credited courtesy Shutterstock. Printed by International Printing Press www.ippuae.com


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// Editor's note

editor’s note

A fine Start

G

CC economies are going through a period of uncertainty and upheaval. A new era of lower oil prices combined with fast rising populations is forcing governments to rethink how they go about the next phase of development. Economic diversification away from oil dependence, long high on the agenda for regional governments, is now more pressing than ever. Billions of dollars continue to be invested in infrastructure to keep up with the pace of growth. With this in mind, Gulf countries are taking unprecedented measures to restructure their economies. Some of these include reforming energy prices and subsidies; encouraging more energy efficient and sustainable building; and considering new revenue streams such as VAT. The ramifications of these changes to the construction landscape formed the basis of the debate at the Construction Innovation Forum 2017. The inaugural event, organised by Construction Business News magazine, passed off successfully on April 25 at

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the Westin Mina Seyahi hotel in Dubai, gathering more than 150 professionals from big name companies to discuss major issues affecting the Middle East construction industry today. The theme of innovation ran strongly through the entire programme, starting with a keynote speech delivered by Dhaen Obaid Almheiri, Chief Innovation Officer at the UAE Ministry of Infrastructure Development. The panels that followed featured topics as diverse as The Road to 2020 – Challenges and Opportunities; Sustainability in Construction; Technology in Construction and concluded with a talk on new Fire safety regulations in the UAE. There was also a timely presentation from Deloitte on the impact of VAT which is set to be introduced across the GCC early in 2018. On behalf of BNC Publishing I would like to thank all of our sponsors, partners, panelists and guests that helped to make the day a big success. We look forward to hosting many more in the coming years.

// construction business news me // May 2017

Jason o'Connell Editor


Grayscale Interiors, with a portfolio of practical fit-out experience and applied theoretical knowledge, has helped clients realize the most complex of projects within budgets and expected timelines www.grayscaleinteriors.com info@grayscaleinteriors.com T +971 4 456 4440 F +971 4 456 4230 Level 17, Suite 08, Al Ameri Tower, Barsha Heights, Dubai, UAE PO Box 74965 construction business news me // May 2017 //

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// Update An update from around the region

For News, features and more, Visit www.CBNme.com Follow us on twitter for breaking news: @cbn_ME Follow us on Facebook for up-to-the-minute breaking news

Contract

Nakheel awards $1.14bn Deira Mall contract

United Engineering Construction bags deal to build Dubai’s biggest shopping mall United Engineering Construction has clinched a AED 4.2bn ($1.14bn) construction contract to build the biggest mall in Dubai. Master developer Nakheel awarded the deal to build Deira Mall which will have a total investment of AED 6.1bn. Construction will begin in Q3 this year with completion expected in 2020, the developer said in a statement. Vibro-compaction work is under way on the site located on Deira Islands, Nakheel’s new, 15.3 sq km waterfront city. The four10

island development, which will transform the area traditionally known as ‘Old Dubai’ into a world-class retail, tourism, living and leisure hub, will be home to more than 250,000 people when complete. With four million square feet of leasable area, Deira Mall will be the biggest in Dubai in terms of shop space. It will feature over 1,000 shops, cafes, restaurants and entertainment outlets across three floors. The project will have a total built-up area of 10.3 million sq ft, including a 3.8

// construction business news me // May 2017

million sq ft multi-storey car park with 8,400 spaces. The development will also boast a retractable roof, bringing natural light into the complex and allowing open-air shopping in cooler months. Deira Mall will be the centrepiece of Deira Boulevard, a new AED 5bn community with 16 residential towers, nearly 3,000 apartments and extensive retail, restaurant and recreation space. A construction tender for Deira Boulevard was released in January this year. Nakheel is also building

Deira Islands Night Souk, set to become the world’s largest night market, with 5,300 shops and almost 100 quayside cafes and restaurants. Construction is in full swing, with the project due for completion in 2018. Deira Islands will add 40km, including 21km of beachfront to Dubai’s coastline and pave the way for hundreds of tourism, leisure and residential developments including hotels, resorts, serviced apartments, mixed-use buildings and waterside homes.


Expo 2020

Expo 2020 unveils Al Wasl Plaza The last major element in the design of the Expo 2020 Dubai site has been unveiled. Al Wasl Plaza will be the centrepiece of the 4.38 km2 site and will be developed alongside the other locations, such as the themed pavilions, with construction scheduled to complete in October 2019. The plaza will connect the three thematic districts – Opportunity, Sustainability and Mobility – as well as the other main concourses, including the Dubai Metro link and the UAE Pavilion, through its seven entrances and exits. Al Wasl is not only the historical name for Dubai but also means ‘connection’ in Arabic, so reflects both Dubai’s goal of bringing people together at the Expo and the plaza’s physical location at the heart of the site. Expo 2020 Dubai worked

with Adrian Smith + Gordon Gill Architecture (AS+GG) on the design of the space after the firm beat competition from some of the biggest names in the industry to win the contract. Adrian Smith was design partner on the team that designed Dubai’s Burj Khalifa. The plaza will be topped by a 65 metre-high domed trellis, inspired by the

shape of the Expo 2020 Dubai logo, that will act as an immersive 360-degree projection surface. As the dome is translucent, the projection will be visible to both those inside and out. Her Excellency Reem Al Hashimy, UAE Minister of State for International Cooperation and Director General, Dubai Expo 2020 Bureau, said: “Memorable

moments are framed by memorable spaces. Al Wasl Plaza will be an inspirational location, exemplifying local culture and family values while also looking to the future.” Ahmed Al Khatib, Vice President of Real Estate and Delivery, Expo 2020 Dubai, said: “Al Wasl Plaza will provide a first of its kind public amenity that will be an inspiration to people around the world. “This is a space that at once reflects the heritage of our country and its vision of a future where nature and technological innovation are integrated in a sustainable way. “The plaza truly manifests the meaning of the term Al Wasl, and can be a symbol of how Expo 2020 Dubai is bringing people together from around the world. Truly Connecting Minds, Creating the Future.”

Construction

The Tower foundations complete Contractors have completed foundation work for The Tower at Dubai Creek Harbour and set a new world record in the process. The pile was tested to a load of over 36,000 tonnes – the maximum carried by a single foundation pile to date, developer Emaar said in a statement. More than 145 barrette

piles have been used to form the foundation for the project, designed by Spanish-Swiss architect Santiago Calatrava Valls. The Tower, which will leverage the latest advances in construction and engineering technology, is destined to overtake Burj Khalifa as the tallest building in the world when it is built. construction business news me // May 2017 //

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// NEWS

Construction Milestone

// In Numbers

DAMAC Towers over 85 percent complete

Construction work on DAMAC Towers by Paramount Hotels & Resorts in Dubai’s Burj area is over 85 percent complete. The project continues to make good progress with superstructure works 100%

complete, and internal finishes, façade works, MEP works, carpentry and joinery works nearing completion. Developed by DAMAC Properties in collaboration with Paramount Hotels & Resorts, the complex com-

Schon and Al Hamad to develop iSuites

prises four towers stretching 250 metres high and will feature one, two and three bedroom luxury serviced branded apartments. DAMAC Properties is currently selling units in three of the towers to be operated under its DAMAC Maison brand, with the development having an estimated sales value of $1.35bn. One tower will contain a five-star hotel complex to be operated by Paramount Hotels & Resorts, which will have over 800 rooms. The collaboration between DAMAC Properties and Paramount extends across various projects, including the $500mn Paramount Tower Hotel & Residences strategically located on Sheikh Zayed Road in Dubai. China State Construction Engineering Corporation was awarded a AED 554mn contract to build the 27 floors that comprise the luxury residences.

$870mn Project value

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Buildings

2,550

Hotel apartments

2020

Date for completion

Ground breaking

Nakheel breaks ground on $48mn hotel at Dragon City Al Ghurair Contracting and Engineering Works has broken ground on a AED 176mn ($48mn) hotel at Dragon City. The ground-breaking ceremony, led by Nakheel Chairman Ali Rashid Lootah, came less than two weeks after 12

// construction business news me // May 2017

Nakheel awarded a contract worth AED 136mn to build the 304-room Premier Inn. It will be Nakheel’s second hotel at Dragon City. The first, a 251-room ibis Styles hotel, opened in February 2016. Set for delivery in 2019, Premier Inn Dragon City

is the latest project in Nakheel’s AED 5bn hospitality expansion. Last week, the company confirmed new hotels at Jumeirah Village Circle and Discovery Gardens, bringing its number of hospitality projects to 18.


Infrastructure

Dubai Metro extension on track

Work is progressing on the 15km extension of the Dubai Metro Red Line from Nakheel Harbour and Tower station to the site of Expo 2020. HE Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors of the Roads and Transport Authority (RTA), inspected work on the project last month, visiting the yard where concrete segments of the metro viaduct are produced together with supporting pillars. The project is being built by the Expolink Consortium of France’s Alstom, Spain’s Acciona, and Turkey’s Gulermack under a AED 10.6bn ($2.8bn) contract. Al Tayer attended a briefing from Abdul Rida Abu Al Hassan, Executive Director of Rail Projects Planning & Development at RTA’s Rail Agency and several engineers about the work progress on the project in which completion rate has reached 7 percent. More than 200 piles have been inserted at depths ranging from 25 m to 30 m at Expo and Al Furjan sites. More than

20 pillars of about 7 meters in height have been cast. Al Tayer also toured the sites of the seven new stations, including Expo Station, which is characterised by an aeroplane wing inspired design, and Jumeirah Golf Estates Station, one of the two underground stations. Route 2020 comprises 11.8 km as an elevated track and 3.2 km as an underground track. The final station in the visit was Nakheel Harbour & Tower Station, the interchange station between the Red Line and Route 2020. “Casting the pillars of the metro viaduct is a landmark achievement in the progress of the project works. This step marks the emergence of the project components, rendering it visible to road users and residents of the neighborhood,” said Al Tayer. The first trial run of the new line is expected to take place in the final quarter of 2019 while the official operation of the service is scheduled for 20 May, 2020, five months ahead of the opening of Expo 2020.

Infrastructure

MBR Library 15% complete Construction of The Mohammed bin Rashid Library in Dubai is almost 15 percent complete, according to officials. Eng. Hussain Lootah, Director General of Dubai Municipality on Tuesday inspected the Mohammed Bin Rashid Library Project, where he was briefed on the progress of the project which is being built by Al Shafar General Contracting. The huge building, which is shaped like an open book, is located on the Dubai Creek in the Jaddaf area. It consists of a main building with basement, ground floor and seven floors, in addition to a central warehouse for books. The library will includes a laboratory for preservation of books and collection and processing of materials, a digital conversion lab, specialised libraries including Arabic library, public library and children’s library besides a reading corner. A Family Library will focus on books that cater to the proper education of family members and the strengthening of family ties, stated the report. With its huge building, the library will serve as a venue for many cultural and intellectual events as well as art exhibitions. The latest technologies will be used in building by equipping it to be one of the largest electronic libraries in the world, it added.

Limitless progresses Downtown JA

Infrastructure work at Downtown Jebel Ali in Dubai has reached a major milestone, with deep utilities work complete at half of the 200 hectare mixed-use project, according to developer Limitless said. Sewerage, storm water and water works have been completed at 50 percent of the DJA project, with roads now underway. Deep utilities work is ongoing at the rest of the development, with anticipated completion this summer. Under the AED 285mn ($77mn) contract, all infrastructure will be finished in 2018. Limitless Chairman Ali Rashid Lootah said: “DJA’s strategic location, close to the Jebel Ali Free Zone and within easy reach of Abu Dhabi, Dubai World Central Airport, the Expo 2020 site and new attractions and theme parks, makes it a key area for growth and development. We look forward to working with the investors who share our vision for this unique master community.” DJA stretches 11km along Dubai’s Sheikh Zayed Road. The project has more than 300 third party plots, on which investors are building a mixture of apartments, hotels, offices and retail developments.

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// NEWS

// Snapshot

Al Shirawi FM achieves ESCO Accreditation in Dubai

M&A

SNC-Lavalin agrees $3.6bn Atkins takeover

Top 5 Web Stories

www.cbnme.com

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1

Qatar slashes World Cup budget by 50 percent

2

SNC Lavalin launches takeover bid for Atkins

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Doosan Heavy bags $420mn KSA desal deal

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Arabtec appoints Peter Pollard new CFO

5

Nakheel awards $1.14bn Deira Mall contract

SNC-Lavalin Group has reached on the terms of an acquisition of WS Atkins for GBP 20.80 per share, or a total cash consideration GBP 2.1bn ($3.6bn). The deal, approved by the boards of directors of both companies, represents a 35 percent premium to Atkins’ closing share price on March 31, the last day before talks between the two companies were announced. Headquartered in the UK, Atkins is one of the world’s most respected consultancies in design, engineering and project management, with a leadership position across the infrastructure, transportation and energy sectors, SNC-Lavalin said. Tracing its roots back to 1938, Atkins today has 18,000 employees with revenues of approximately GBP 2bn in 2016, and is geographically diversified in the US, Middle East and Asia, together with a leading position in the UK and Scandinavia. “By combining two highly complementary businesses, we will increase our

// construction business news me // May 2017

depth and breadth of services to position us as a premier partner to public and private sector clients,” said Neil Bruce, President & CEO. He added: “It also creates new revenue growth opportunities in key geographies by positioning us to capitalise on increased cross-selling and the opportunity to win and deliver major projects in new regions. “I look forward to welcoming Atkins’ employees into our combined company. Together, we will become part of a larger global organisation that will open the door to new opportunities for further growth and development.”


// NEWS

Project launch

Foundation stone laid for $270mn Silicon Mall

// Bitesize news

The 119 hectare Dubai Safari project is in the final stages of construction and will be complete within the next few months, according to Dubai Municipality officials.

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Silicon Oasis Authority (DSOA), last month unveiled the commemorative plaque and laid the foundation stone for Silicon Mall. Designed by London-based Design International, the 2.3 million square feet shopping mall by the LuLu Group will have a total investment of around AED 1bn. A main contractor is expected to be appointed for the project in the coming weeks.

The ceremony was attended by Dr Mohammed Alzarooni, Vice Chairman and Chief Executive Officer of DSOA, Yusuff Ali MA, Chairman and Managing Director of LuLu Group International. Yusuffali MA, said: “Silicon Mall is our most ambitious project in the UAE to date, and we intend to make it the most interesting and exciting mall in Dubai. Work on the project will be completed in a period of 30 months, just in time for the launch of

Dubai EXPO 2020.” Leveraging best-in-class international standards and green building concepts, the Silicon Mall at Dubai Silicon Oasis will feature a futuristic façade and sky-lit corridors on all floors. In addition to more than 300 international and local branded stores, and 12 anchor stores, the new shopping mall will also house the LuLu Hypermarket and Department Store on two levels.

Mubadala Development Company and Eshraq Properties are exploring opportunities for establishing a joint real estate development company in Abu Dhabi.

DAMAC Properties has revealed plans to build a 5-tower hotel with 2,000 rooms surrounded by a golf course within AKOYA Oxygen project in Dubai.

Salini Impregilo JV in $255mn Saudi Arabia deal Salini Impregilo’s Fisia Italimpianti unit and a Spanish joint-venture partner are set to design and build a water desalination plant in Saudi Arabia after signing a $255mn agreement with ACWA Power. Located in the Shuaiba area on the western coast of Saudi Arabia, the plant will use reverse osmosis technology to deliver up to 250,000

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cubic metres of water per day, supplying potable water to more than one million residents in the cities of Mecca, Jeddah and Taif. In a joint-venture in which it holds 50 percent, Fisia Italimpianti has signed a Limited Notice To Proceed (LNTP) with ACWA Power to start the preparatory work. The JV expects the signing of a Full Notice To Proceed

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(FNTP) by July 27, 2017 and to hand over the plant by May 2019. This new order confirms Genoa-based Fisia Italimpianti as one of the world’s leading builders of large desalination plants, with more than 4 million cubic metres per day of installed capacity and one of the few able to deploy the two prevailing technologies used in the sector: thermal and reverse osmosis.

Becon Construction will execute the main construction works for Bloom Heights, a mixed-use project in Dubai’s Jumeirah Village Circle (JVC).


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// Appointments

Appointments Movers and shakers in the industry

ABB names new MD of UAE and Gulf Countries ABB has named Mostafa AlGuezeri as the new Managing Director for its operations in the United Arab Emirates and Gulf countries. AlGuezeri replaces Frank Duggan, who holds the dual role of Managing Director for UAE and Gulf countries as well as President of the Asia, Middle East and Africa region. Duggan will become President of the Europe region for ABB. AlGuezeri will lead the ABB business with a key focus on strengthening relationships with ABB’s customers in the utility, industry, transportation and infrastructure sectors, to help accelerate sustainable value creation and ensure efficient operation of their businesses.

Emaar appoints new chief executive

Faithful+Gould appoints new UAE country director Faithful+Gould has appointed Paul Doherty as country director for its 265 peoplestrong UAE division in the Middle East. Paul has been with the international project and programme management consultancy for 18 years, most recently as the head of operations for the UK West Midlands region. He will be responsible for developing the company’s business in the UAE and positioning Faithful+Gould to make the most of the strategic opportunities available over the coming years as part of the UAE Vision 2021 and beyond. 18

Dubai-based developer Emaar Properties has hired John Carfi as new chief executive in charge of Development. Carfi joins Emaar from Australian property group Mirvac, where he was head of residential. With a proven record of developing high-end apartments for large-scale city-based projects, John will be responsible for developing the next generation property portfolio of Emaar and creating distinctive value propositions for customers.

Larsen & Toubro appoints new CEO and MD

// construction business news me // May 2017

Engineering and construction major Larsen & Toubro (L&T) announced that SN Subrahmanyan will be its new CEO and MD with effect from July 1. Subrahmanyan, who joined L&T in 1984, is currently the Deputy Managing Director and President of the company. He has a degree in civil engineering and is a post-graduate in business management. AM Naik, who has been serving as Chairman since 2003, will become the non-executive Chairman for three years from October 1.


// Contracts

Contracts Petrofac awarded $1.3bn contract in Kuwait

Azizi hands out contracts worth over $500mn Azizi Developments has awarded a batch of contracts to build projects in the Meydan One development as well as Dubai Healthcare City. KCC Engineering Construction & Maintenance and Actco General Contracting Co won contracts worth AED 1.7bn ($462.85mn) to build 35 buildings at Meydan One. Azizi has also awarded a construction contract for three residential buildings containing a total of 1,900 apartments in Dubai Healthcare City to Belhasa Projects.

Petrofac has been awarded a contract worth $1.3bn to build a gas gathering centre for Kuwait Oil Company (KOC). The lump-sum engineering, procurement and construction (EPC) project is the first sour gathering centre to be developed in the Burgan oil field and will process crude oil and associated gas. Work is scheduled to be completed in mid-2020.

Teyseer and CCC win Msheireb Properties contract

Arab Contractors bags $560mn Kuwait contract Arab Contractors has signed a KWD 170mn ($560mn) contract with the ministry of public works in Kuwait to develop the Nuwaiseeb Road. The project includes 37 km of roads of three lanes in each direction, with two safety lanes and nine multi-storey intersections. Work is expected to take 36 months.

ARACO contracted to design 14 buildings in Dubai Msheireb Properties has awarded the contract for major construction work of Phase Four of its Msheireb Downtown Doha project to a joint venture of Teyseer Contracting Company and Consolidated Contractors Company (CCC). Phase Four features the development’s tallest building as well as a public plaza and 11 mixed-use buildings.

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// construction business news me // May 2017

Abdul Rahim Architectural Consultants (ARACO), an engineering consultant in design and project management in the UAE, has won a tender for the design and licensing of 14 buildings in Dubai’s Satwa area. The project, released by Alnafisi National Real Estate Group Co. is valued at approximately AED 570mn ($155.2mn) and is expected to cover a building area of 1.3 million feet. ARACO’s scope of work includes architectural, structural, MEP design and engineering, the obtaining of all necessary permits from relevant bodies, and complete overseeing of the construction process.


Doosan Heavy bags $420mn Saudi desalination deal

Emirates Link Maltauro contracted by Bloom again

Doosan Heavy Industries & Construction has won a KRW 470bn ($422mn) engineering, procurement and construction (EPC) for the largest seawater reverse osmosis (SWRO) desalination plant in Saudi Arabia. The deal with Saudi Arabia’s Saline Water Conversion Corporation (SWCC) is for a plant to supply water to 130,000 people near Shuaibah, on the country’s Red Sea coast, about 110 kilometers south of Jeddah.

Nakheel awards $37mn Dragon City hotel contract Al Ghurair Contracting and Engineering Works has won a AED 136mn ($37mn) contract to build a second hotel at Nakheel’s Dragon City development in Dubai. Set for delivery in 2019, Premier Inn Dragon City will span 178,000 sq ft in builtup area over eight floors and is part of a master plan to transform Dragon City into a giant retail, residential and recreational complex of more than 11 million square feet.

DAMAC awards $16mn villa contract

Emirates Link Maltauro has been appointed for the main works at FAYA, the fourth phase of Bloom Properties’ Abu Dhabi residential community, Bloom Gardens. The contractor recently delivered Phase 3 of the project in Abu Dhabi prior to the scheduled hand-over in Q1, 2017. FAYA will consist of 132 townhomes made up of 28 four-unit clusters and four five-unit clusters.

Ghantoot General Construction wins $136mn Aldar contract

DAMAC Properties has awarded Towers Technology Contracting Co with a contract worth AED 58.4mn ($16mn) for the main structure works of villas at Mulberry cluster in AKOYA Oxygen, a 55-million-square-foot development in Dubailand. The grading works, final design and mobilisation works at the cluster are all completed and engineering works and deep service works are in progress.

Aldar Properties has awarded the main contract to build a luxury residential development located on Yas Island to Ghantoot General Construction. The AED 500mnn ($136mn) deal is for the construction of five, 11-story buildings comprising 512 units, 19 of which will be luxury beach villas overlooking the Yas Island shoreline. The development lies minutes away from Yas Island’s leisure and entertainment destination.

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// Comment

The Complex Relationship Delivering a project has become extremely complex which has made the construction industry more difficult to manage. By Omar Delawar, Chief Projects Officer, Meraas

W

orking in a team to deliver a project is becoming ever more complex, despite the evolution of technology, communication and, most importantly, education in design and construction. These innovative tools have assisted project managers, designers, engineers, quantity surveyors, architects and contractors in delivering projects in the fastest, most efficient, effective and creative ways. It has been remarkable how the time required to deliver projects has shortened over the years, mainly due to these tools, but also because of increasingly demanding clients and the financial pressures associated with 21st century fast-track economies, particularly in the Gulf. So what makes project delivery more complex? By complex, I do not refer to any technical aspect of project delivery, but mainly to the communication and collaboration between all parties to achieve a unified goal. Poor communication, a multitude of project goals and lack of proper and timely decision making are the main reasons delaying the delivery of some projects and, to a certain extent, increasing overall development costs. There is also a growing tendency for clients to be more heavily engaged in the full life-cycle of a project, thus adding another layer to the lines of communication and decision making for these projects. Whether this level of involvement from the client is right or wrong is a question for another time. However it is proven that clients who are significantly engaged in the project life-cycle have affected the role, responsibilities and decision making ability of 22

project management companies, architects and consultants and therefore the overall project management process. Since the ancient Egyptians, the “Architect” was tasked with delivering a project on time and within budget, assuming the role of sole decision maker. Project management was practiced during this time in its basic form as part of the role of the architect. Modern methods developed between the 1900s and 1970s, mainly in the United States of America completely changed how projects would be managed. It started with a pioneering scientist, Fredrick Taylor, creating methods to measure performance that was later developed further by his friend, Henry Gantt, the father of modern project management, who was the first to design charts and diagrams to measure performance that are still widely used today. In 1913 the “Fédération Intérnatonale des Ingénieurs Conseils”, more commonly referred to as FIDIC, was founded in Belgium and is currently located in Geneva Switzerland with 97 member countries around the world. The purpose of FIDIC was to publish international standard forms of contract that regulate the relationship between all parties involved in the construction industry, and also to publish business practice documents such as guidelines, policy statements and business processes. In 1965, the International Project Management Association (IPMA) was founded in Vienna and a few years later in 1969, the Project Management Institution (PMI) was founded in the United States of America, to help create an industry standard such as the Project Management Book of Knowl-

// construction business news me // May 2017

edge (PMBOK), which was recognised by the American National Standards Institute in 1998. Modern project management has, over the past century, introduced a number of standards around the world which require new job descriptions and roles such as project manager, cost consultant, programme manager, etc. This, along with the increased involvement of clients, has limited project and construction management flexibility among individuals and organisations and has led in so many cases to the weakening of the role played by lead consultants and architects and, ultimately, the likelihood of the project completing on time and within budget. As much as job descriptions and roles and responsibilities have defined the project management processes, they have created inflexible individuals and organisations not thinking beyond the limits of their scope of work. The relationship between the teams responsible for delivering a project has become extremely complex which has made the construction industry more difficult to manage. Completing projects on time, within budget and within the brief and scope defined should be the goal of all individuals and organizations involved in delivering it. Unfortunately, this is not usually the case despite having the most successful project management systems and talented individuals and/ or organizations. In a controversial statement: “The Job descriptions will not achieve the goals of a project, the industry should be seeking individuals/organisations with unlimited scope to achieve the project goals led by the project champion”.


// NEWS

Forum In as s o c i at i o n w i t h

Held Und er the patr o n age o f

P l at i n u m S p o n s o r

Dev e lo p e r Pa rt n e r

Gold Sp onsor s

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// construction business news me // May 2017

S i lve r S p o n s o r


Inaugural edition of the event proves a big draw for some of the construction industry’s leading companies.

T

he inaugural Construction Innovation Forum concluded successfully on April 25 following a series of thought provoking debates involving big name companies on some of the key trends and challenges confronting the construction sector in the Gulf today. More than 150 construction industry

professionals gathered at the Westin Mina Seyahi hotel in Dubai for the half day event, which was held in association with Cimolai Rimond and under the patronage of the UAE Ministry of Infrastructure Development. The theme of innovation ran through the entire programme, starting with a keynote speech delivered by Dhaen

Obaid Almheiri, Chief Innovation officer at the Ministry. The headline panel saw representatives from a number of leading companies - including Cimolai Rimond, Daemaar Group, Al Shafar General Contracting (ASGC), Thomas & Adamson and Sobha Group - discuss the challenges and opportunities facing

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// Event review

the construction sector as Expo 2020 Dubai approaches. The second panel produced a lively debate about the nature of sustainable building practices in the Gulf. Experts from Cimolai Rimond, Multiplex, AESG, Arcadis, BuroHappold and Linesight shared their insight on the topic which is one of the three central themes of Expo 2020 Dubai. After the networking coffee break Justin Whitehouse, Managing Director | Indirect Tax Middle East, at Deloitte delivered a presentation on the implications of incoming VAT for the construction sector. He concluded with the message that companies should waste no time in preparing themselves for the tax which is all but certain to be introduced at the beginning of 2018 in most parts of the GCC. The programme continued with a panel on the growing role played by technology in construction. As expected BIM was central to the discussion between experts drawn from six leading companies - Trimble, Bentley Systems, Autodesk, Aecom, Faithful+Gould and ALEC Building. The event concluded with a discussion of building fire safety in the UAE, which mainly focused on the implications for construction industry stakeholders of the recently introduced fire safety code of practice. Fire safety experts from AESG, NICEIC and Transpro took to the stage to give their thoughts on the topic. The Construction Innovation Forum was held in association with Cimolai Rimond with platinum ally Du, developer partner, ARADA, gold allies Daemaar Group and Hill International and silver ally BASF. 26

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Dhaen Obaid Almheiri, Chief Innovation Officer, UAE Ministry of Infrastructure Development

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// NEWS

Staying within the comfort zone of your core business can limit the growth of the company and its potential�

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Thinking

Mohammed Jafer Musthafa dreams of making Daemaar Group one of the top companies in the Middle East.

M

ohammed Jafer Musthafa was just 26-yearsold when he established Daemaar Group. Starting out with Daemaar Contracting, a construction company specialising in Civil and MEP, he expanded the company with the acquisition of SPELCOMEP in 2015. The latest addition to its construction portfolio, MJM contracting works with leading public and private partners in Sharjah and Dubai. Today, less than five years since its launch in 2013, Daemaar Group has expanded to comprise six stand-alone companies established within the construction (MEP and Civil), Facilities Management, Trading and Retail sectors. Based in the UAE, with offices in Qatar, Kuwait, Oman and Saudi Arabia, Daemaar works

throughout the Middle East and beyond. Construction Business News met its ambitious founder and managing director, and found a young entrepreneur brimming with confidence and excited about the challenges ahead. Daemaar Group was founded just a few years ago. What made you start the company? A few years ago, right after my graduation, I did a few internships and trainee jobs with different companies before landing a permanent position at a famous oil refinery company in India. Working in various positions under different conditions and different people made me realise that my true passion was to challenge the norms and lead rather than to follow. So I charted a

career path, took a job as an engineer in a leading oil company in the UAE and studied the market. Soon after, at the age of 26, I quit my job, invested my life savings and my determination and opened my own company in 2013, which today is proudly known as Daemaar Group. Daemaar is quite diversified, both in terms of the sectors and the countries it operates in. Why is that? While on the journey of building a company, one of the most important lessons you can learn is that staying within the comfort zone of your core business can limit the growth of the company and its potential. In today’s continuously innovating and fast moving world, we

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// Cover Story

have access to unlimited resources and fully facilitated technology, which helps to diversify a business to compliment the core sector you operate in. It also helps to push the boundaries and to grow not only horizontally across the region but vertically in the chain as well. Opening the doors to new regions challenges a business and helps to lay stronger foundations for future growth.

is being overlooked. Yes, profit margins are being squeezed because competition in this sector is high, but we concentrate on giving the most competitive prices to our clients while increasing our project pipeline. What is notable is how, over the years, banks have become stricter at selecting clients according to their reputation with a Bank Guarantee and Performance bond.

What is the company's main service offering on the construction side? What sort of clients do you mainly work with? Daemaar group offers Civil, MEP and Facility Management in the construction sector. Our main focus lies in delivering turnkey projects for diverse clients in the fields of property development (commercial & residential properties), multistory hotels, industrial projects and private villas.

What strategies have you adopted to get through this difficult period? We are all familiar with the last financial hit in 2008. I believe the market is a cycle and that better times are ahead. Giving unrealistic expectations a backseat and paying attention to everyday routine is very important during this difficult time. Localising your business operations reduces the pressure on a company and the market as well. I consider this period the best time to invest in the most qualified talent available in the market for the future of our company.

What competitive advantage do you offer over other companies operating in the same sectors as you? Daemaar Group started with its core business in construction before branching out into different sectors. Our excellence in construction stems from our skilled employees who offer their expertise to clients and their projects. One of our key strengths is our valuable reputation in handing over projects on or before the contract date and our excellence in advantage services, such as providing free, two-year maintenance 24/7 to provide 100 percent satisfaction for our clients. The construction sector in the Middle East has gone through a difficult time in recent years. What are the main challenges you're facing at the moment? There are market fluctuations but that is not only limited to the construction sector. The key is to look beyond the present situation and focus on the future because that is every business’ long-term goal. Currently, there is huge potential in terms of recruitment in the market that 30

Have you seen signs of a recovery recently? You are active in Dubai, for example. Has activity started to pick up again? Daemaar Group has companies specialised in the Civil & MEP sectors with ongoing projects in Dubai, where the vision is that the future is always under construction. There has been a slowdown in activity but never a complete stop. Dubai is taking this time to focus and invest in smaller developments in the city with road developments, hospitality and tourism projects. The prediction for construction activity in Dubai is for the market to peak again in 2018 as preparations for Expo 2020 accelerate. Which countries and sectors do you think offer the best opportunities for your business right now? I started my construction company in the UAE, and one of the best things about this country is that it provides a platform for anybody that wants to grow. The UAE will always have a strong pipeline of projects in the hospi-

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Daemaar Group was built from the ground up and we dream of spreading our wings and taking the company across borders to new countries around the world� tality and tourism sectors which provides opportunities for the construction sector, and this is especially the case as excitement builds in the run up to Expo 2020. Qatar has established a solid base as an upcoming market with infrastructure project offerings and rising developments, mainly thanks to the fact it will host the FIFA World Cup in 2022. That’s why Daemaar Group has established a base in Qatar, to target commercial projects specialised in the civil and MEP sector. Saudi Arabia is another strong market with immense resources. Their current focus on the development of energy projects and their VISION 2030 will provide a


ing our wings and taking the company across borders to new countries around the world with our unique service offerings. The market is continuously changing and companies are now shifting their focus to raising environmental awareness, social sustainability, helping poor countries and raising living standards. With greater power comes bigger responsibilities, and we are now taking small but significant steps to a better future by supporting the government with pressing issues like community development and environmental conservation, because everything is intertwined. Our strength is our employees and we look forward to growing the Daemaar family and providing flexible job opportunities to people starting from the UAE, with a small focus on my community Pazhayangadi, in southern India. Daemaar Group has ventured into retail with a focus on fashion apparel, F&B concepts and lifestyle brands and trading with construction consumables and food products. In the years to come, Daemaar Group dreams of being one of the top companies in the Middle East.

lot of opportunities for foreign investors to come into the construction field. Sectors like hospitality, commercial and residential property and the adoption of PPP to finance projects are all examples of how the Middle East is growing and evolving to compete with international markets. Do you plan to continue expanding the construction side of the company? If so, will this mainly be through acquisitions or by organic growth? Daemaar Group already has Civil, MEP

and Facility Management companies in our construction portfolio. We plan on adding a property development company by 2018, with the intention of building commercial and residential projects around the Middle East. Acquisitions are an easier way of entering established markets and we plan on penetrating mature markets through acquisitions and upcoming markets, like India, by organic growth. What are your ambitions for the company over the next 10 years? Daemaar Group was built from the ground up and we dream of spread-

What advice would you offer to aspiring entrepreneurs from your generation? We often hear from our parents how life was built on tough experiences, meager resources and a lot of hard work. Hard work has a whole other meaning for our generation. We have access to technology and resources at such a young age. The first and most important step is to understand that power lies in our hands, that we can follow our dreams, chart our own course and build our own future. My father used to tell me, ‘your youth is for your struggles and doing what you love will only raise you higher in life’. Till today, one of the biggest opportunities I received in the different jobs I worked was the ability to engage with senior employees to learn firsthand from their life and work experiences. Their invaluable lessons helped shape many of the decisions I took for my company, and will continue to do so.

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// Project Update

Build Up to Kick Off Construction work has begun on seven of the eight venues confirmed to host matches at the 2022 FIFA World Cup in Qatar.

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atar is making steady progress on building the stadiums for the FIFA World Cup 2022, but with five years to go before a ball is kicked there is still uncertainty over the final number of venues that will host matches. The country has slashed its budget for the tournament by up to 50 percent and could provide as few as eight stadiums, Hassan Al Thawadi, secretary general of the Supreme Committee for Delivery & Legacy organising the tournament, told CNNMoney recently. Qatar is now proposing to build just eight venues for the World Cup which would be the lowest number since the world’s biggest sporting event was held in Argentina in 1978 when only 16 teams participated, half the number that will be in Qatar in 2022. FIFA has yet to approve the number of venues for 2022 but there were 12 at the last World Cup in Brazil in 2014. Construction is now underway on seven of the eight venues that will host matches. Construction Business News takes a look at the progress so far.

Khalifa Stadium Originally built in 1976 and renovated for the 2006 Asian Games, Khalifa International Stadium is undergoing a third comprehensive revamp, which includes building a single roof to cover the whole seating area, adding a new building to the east wing, and construction of an Olympic sports museum. The ‘big lift’ operation of the roof is complete as is the installation of an innovative roof membrane, with completion of the project planned expected imminently. The roof will provide more shade to the stands and pitch while letting enough sunlight through to the turf for natural growth of the grass.

A team of 40 specialists recently laid the pitch in a record of just 13 and a half hours. Originally planned to seat 68,000 spectators, the venue was later downgraded to 40,000, the minimum allowed by FIFA. It will be completely cooled throughout, including the field of play and spectator seating areas. The venue will host matches through to the quarter-finals of the competition. A joint venture between Midmac Contracting and a subsidiary of the Belgian Besix Group, Six Construct, is overseeing the main contractor works on the stadium. Dar Al Handasah and Projacs are the Design Consultant and Project Manager respectively.

Capacity: 40,000 Completion date: 2017 Contractor: Joint venture of Midmac Contracting and Six Construct

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Lusail Stadium Work has started on the stadium that will host the opening and final matches of the 2022 FIFA World Cup. Ground is currently being cleared in preparation for construction to start on the 80,000-seat Lusail Stadium, 20 km north of Doha, which is scheduled to complete by 2020. There are currently about 500 workers on site but that will rise to 7,000 once construction is in full swing. A joint venture of Qatari company

HBK Contracting (HBK) and China Railway Construction Corporation Limited (CRCC) was awarded the main construction contract to build the venue in November. The stadium is located on a one square kilometer plot along the Al Khor Expressway in the western edge of Lusail City. While the final design is still taking shape, renowned British architecture firm Foster + Partners completed the schematic design of the stadium earlier last year.

Capacity: 80,000 Completion date: 2020 Contractor: Joint venture of HBK Contracting (HBK) and China Railway Construction Corporation Limited (CRCC)

Al Bayt Stadium – Al Khor City Work on the Al Bayt Stadium in Al Khor City is progressing on schedule, with 40 percent of structural work and 25 percent of the construction work for the surrounding precinct already completed, according to Aspire Zone Foundation Project Director Dr. Nasser Al-Hajeri. The retaining wall that will support the next two levels of the stadium's overall weight has also been erected, and will ultimately be the main support of the stadium’s state-of-the-art retractable roof that will take just 20 minutes to close. The venue will have an overall height of 37 metres. Recently the site team began installation of the first fix of

Capacity: 60,000 Completion date: Q4 – 2018 Contractor: Joint venture Salini Impregilo/Galfar/Cimolai

approximately 2,500 seats at the north stand of the 60,000-seat stadium. After the tournament, the stadium’s capacity will be reduced to approximately 32,000 seats, with the upper tiers donated to countries in need of sporting infrastructure. The upper concourse of the stadium will then be converted into a hotel. A shopping centre and a branch of Aspetar, the leading sports medicine facility, will also be incorporated into the structure.

Al Thumama Stadium Capacity: 40,000 Completion date: 2020 Contractor: Joint venture AlJaber Engineering (JEC) and Turkey’s Tekfen Construction

Al Thumama was the seventh stadium for which the main construction contract has been awarded. AlJaber Engineering (JEC) and Turkey’s Tekfen Construction were confirmed as the joint-venture (JV) partners in charge of building the stadium in the Al Thumama district of Doha, Qatar. Arab Engineering Bureau (AEB), the oldest architectural and engineering consulting firm in Qatar, was confirmed in 2015 as the Design & Construction Supervision Consultant for the 40,000 seater. The venue, located just minutes from Hamad International Airport and in the centre of Doha, is scheduled for completion by 2020 and will host matches up to the quarter-final stage. The stadium is located in an area of 515,400 square meters that already comprises four outdoor training pitches and office facilities currently used by the Qatar Football Association Technical Committee. The venue will have a reduced capacity of 20,000 seats in its post tournament legacy mode as part of the SC’s modular stadium legacy plans. Construction began in Al Thumama in mid-2016, with TiME Qatar as the project managers. Most recently levelling and grading works were completed by Boom Construction. The stadium design will be launched in 2017.

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// Project Update

Wakrah Stadium Designed by Zaha Hadid, the futuristic venue will host matches up until the quarter finals state of the tournament. Located 15 kilometres south of Doha, the 40,000-seater stadium was designed taking the dhow boats that carried Qatari fishermen and pearl divers as inspiration. A joint venture of MIDMAC and PORR QATAR. The future home of Al Wakrah Sports Club will be surrounded by approximately 560,000 square metres of legacy precinct, including a new sports centre and community hub. The precinct will feature a range of community facilities, such as a park, mosque, school, hotel, wedding hall, vocational training centre and retail outlets. Like most of the other venues the stadium will be reduced in legacy mode to 20,000 seats, with the upper tiers sent to developing countries in need of sporting infrastructure. Capacity: 40,000 Completion date: Q4 2018 Contractor: Joint venture of MIDMAC/PORR QATAR.

Al Rayyan Stadium

Qatar Foundation Stadium Capacity: 40,000 Completion date: Q4 2019 Contractor: Joannou & Paraskevaides (J&P)

A joint venture led by Cyprus-based Joannou & Paraskevaides (J&P) is the main contractor for the Qatar Foundation Stadium, which was the fifth venue to begin construction for the 2022 FIFA World Cup. The stadium is located within the Hamad Bin Khalifa Sports Complex (HBKSC) at the Western area of the Education City South campus. It is scheduled for completion by the end of 2019. The venue will have a net capacity of 40,000 spectators, which will be reduced to a net capacity of 25,000 seats after the tournament to fulfil Education City’s own legacy needs for world-class multipurpose sports facilities.

Ras Abu Aboud Built on the site of Ahmed Bin Ali Stadium, the new Al Rayyan Stadium, first concrete was poured for the 40,000 seat venue in October 2016 with construction expected to be complete by the first quarter of 2019. The area surrounding the stadium has also seen major progress with the completion of excavation for the metro by Qatar Rail. Works on the road connecting the stadium with the nearby mall and other services surrounding the precinct are also complete. The main contractor for Al Rayyan Stadium is a Joint Venture Company of a local company Al-Balagh Trading & Contracting Company and Indian construction company Larsen & Toubro. The Ramboll and Pattern stadium design is inspired by local patterns and structures that resemble the sand dunes that surround traditional desert tents. The 40,000 venue will be reduced to 21,000 seats after the tournament for legacy use. The top tier will be dismantled and donated to developing football nations. Capacity: 40,000 Completion date: Q1 2019 Contractor: Joint venture of Al-Balagh Trading & Contracting Company/Larsen & Toubro

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Capacity: 40,000 Completion date: TBC Contractor: TBC Significant progress has yet to be made on the final of the eight planned stadiums which lies to the east of Doha’s city centre, in the Ras Abu Aboud area. The design of this arena has not been finalised, but it will hold at least 40,000 fans. Global architecture firm Populous, which has designed some of the most famous sporting venues in the world, is working on proposals for the stadium. Legacy proposals include transforming the venue into a mixed-use urban neighbourhood after the 2022 FIFA World Cup, providing housing for Qatar’s rapidly expanding population.


// In person

Masters of infrastructure Indian multinational conglomerate Larsen & Toubro has established a presence in the Middle East over four decades with its first project being the Abu Dhabi International Airport in the late eighties. Construction Business News spoke to D.K. Sen, Whole Time Director and Senior Executive Vice President (Infrastructure) about the company’s recent activity in the Gulf.

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Tell us about your activity in this region We have a healthy order book of around $7.7bn in the GCC market and we are quite optimistic that we will secure some huge projects in Kuwait and Africa in the near future. From an infrastructure business standpoint, we execute jobs on EPC, lump sum as well as on re-measurable basis in the fields of roads, airport infrastructure, metros, railways, elevated corridors as well as roads and infrastructure development of townships. Currently, we are operating in four countries in the Middle East. We have a strong track record of executing prestigious and challenging mega projects. Some of the notable infrastructure projects executed by us in GCC are: Middle bridges on trunk, Palm Jumeirah Island, UAE; Khalifa Port Interchange project, Abu Dhabi, UAE; Construction of the dualisaton of Ghala - Al Ansab Road, OMAN; Design & construction of improvements at Al Athaibah flyover and junction, OMAN; Mahalah Ghubbrat Al Tam Ismaiyah road project, OMAN; Design and construction of underpasses and flyovers along Darsit Al Wadi Al Kabir Road, OMAN. We will continue to deliver our projects on time with superior safety and quality standards and remain focused on improving the efficiency of project delivery with an effective internal process control team. Having understood

Al Wakrah, Qatar

Batinah, Oman

the nuances and sensitivities in each market, we will continue to explore and be focused on the markets that will give us the right projects. Currently we remain focused on delivering the projects secured by us and look forward to the right opportunity to make a foray either through local partnering or by our own resources

depending on the project risk, profile and size. 2016 was a tough year for many companies. How was it for you? As we have a healthy order backlog we don’t expect any immediate impact on the revenue of the company from international business. But due to the uncertainty

in the market and drop in international oil prices over the last year, there has been a dramatic impact on the economic outlook of the GCC countries. The inflow of new construction projects in the market has seen a considerable slowdown. This economic downtrend forced investors to rethink project execution and prioritise

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// In person

projects which are more need-based and social infrastructure projects such as schools, hospitals etc. GCC countries have focused on building these kind of prioritised projects. We are quite confident that, the economic situation will improve in the coming quarter. What other challenges are you facing at the moment? The other major challenges include the regulatory requirements like restrictions on the visa for the work force. Being an Indian organisation we try to mobilise our workforce domestically where we have specially trained workers through our skills development centre (CSTI). But due to the visa restrictions, we are forced to source the workmen from other sources and training has to be given to them again. What are the company’s future plans? As there has been a decline in the inflow of construction projects, we are trying to explore new regions like Africa to diversify our portfolios. But we are here to stay and are looking for reputed projects where we can strengthen our design capabilities and will be looking for big projects in partnership with local players as well.

D.K Sen holds additional responsibilities as Chairman on the boards of L&T Infrastructure Engineering Company and L&T Oman and is also a member on the board of L&T Qatar. 38

Al Wakrah, Qatar

D.K Sen lists Larsen & Toubro’s main strengths as a company • Successful execution and on time delivery of mega projects in India • Having the required resource base, technical know-how, in-house construction methods, design cells and a large bandwidth of management staff. • Strong back office engineering support we have back home in India who can design and present the most cost optimal solutions. • Having CSTI (Construction Skills Training Institute), a Skills Development Centre specifically present for training and imparting special skills to the workforce in India • Strong supply chain spread across on global level helps us in sourcing the material of a superior quality and at an optimum cost

Current projects Airports

• Midfield Terminal Complex-Airside works – Abu Dhabi International Airport, Abu Dhabi, UAE

Railways and Metros

• Riyadh Metro Line 1 and Line 2 - Design, supply, and installation of the track system. • Riyadh Metro Project, Package-2 - Design & implementation of, comprising the line along AlMadina AlMunawara - Prince Saad Bin Abdulrahman Al-Awwal corridor

Road Projects

• Improvement of Mafraq to Al Ghweifat Border Post Highway-Section 4A Himeem Interchange to Abu Al Abyad, Abu Dhabi, UAE • Construction of Batinah Expressway Package-4, OMAN • Dualization of Bid Bid-Sur Road Section II (Ibra-Sur) Part 1, OMAN • Design and Construction Al Wakrah Bypass Road, QATAR • Roads and Infrastructure in Doha Industrial Area Package 6, QATAR (in joint venture with a local company)

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Delivering National Pride For the past decade, we’ve provided integrated turnkey construction services for highly challeging and complex projects to make our Clients‘ vision a reality. The United Arab Emirates Pavilion at EXPO 2015 in Milan, designed by the world-famous architecture studio Foster +Partners, takes its inspiration from the desert landscape and the highly innovative and futuristic e©q†‡³yq³·©y‚2e­ue© ‡³Âů2­³­‡ƒ˜‡Ëqe˜³’ÂŪ³†yAe¿‡’‡˜‡­uy­‡ƒ˜yu³ be relocated to the UAE.

After a successful delivery in Milan, the Pavilion has been distmantled and relocated to Masdar City. Now, we are working on the ultimate reconstruction of the Pavilion, to showcase sustainability projects embracing UAE’s National Pride. We are very proud to be a part of this ambitious mission. www.cimolairimond.me | info@cimolairimond.me


The Formwork Experts.

Stay safe someone at home is waiting for you. A kind reminder from your worksite-safety partner on occasion of World Day for Safety and Health at Work April 28, 2017 Doka Qatar WLL | P.O. Box 23439 | Doha | Qatar | T +974 4450 0628 | F +974 4450 0608 qatar@doka.com | www.doka-me.com

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// Machinery & Vehicles

Muscle & Might Our monthly review of the workhorses of the construction industry

42 News 46 Rocking on and on in Qatar

SDLG wheel loaders prove their worth to Doha’s Al Maram International

48 The future of roadbuilding

Embrace technology or be left behind, says Kuno Kaufmann director of research & development at Ammann

54 Uptime upstart

The Croner could be UD’s winning middle weight challenger

56 On track in Qatar

Ford Trucks explains why it is now a major player in Qatar construction business news me // May 2017 //

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// NEWS

Partnership

IVECO and FAMCO partner up in Egypt

IVECO and Al-Futtaim Misr for Car Trading (FAMCO) have formally announced a new partnership deal in Egypt. The two companies successfully re-launched Iveco’s range of on- and off-highway trucks in Saudi Arabia last year and will look to build on the Italian vehicle maker’s long-standing presence in the Egyptian market. FAMCO will operate a dedicated 3S (sales, service and spares) facility in the Abu Rawash district of Giza located close to the capital Cairo. An estimated 300 customers from across Egypt, including representatives from governmental agencies municipalities, construction businesses, quarries, transport operators and other operations attended the event. IVECO also presented its full range of vehicles, from light to heavy, to industry professionals and decision makers attending the customers’ day. 42

“As part of our strategic expansion plans and in line with Al-Futtaim Automotive Group’s strategy ‘Customers and Vehicles for Life’, we were quite interested to get into a partnership with a reputable brand such as IVECO, which has a deep understanding of the area’s transportation needs for both off-highway and on-highway and provides a wide range of products offerings to the transportation sector,” said Nigel Johnson, senior managing director, FAMCO. “The medium and heavy ranges represent IVECO’s core business in the Middle East region. The company is aware that the needs of fleets are changing, as well as the types of vehicles required, and IVECO’s offhighway and on-highway

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ranges offer a superior choice for fleet owners.” The Egyptian market will be served by the 15,000sqm Abu Rawash hub as well as a mobile service unit. “This facility which is operated by our highly skilled sales and after-sales professionals in order to provide our customers with the highest level of support to their business needs,” added Nabil Naga, general manager, FAMCO Egypt. “Our newly opened facility is equipped with a sophisticated equipment to ensure a full care of our clients’ fleets.” “We are extremely pleased with our partnership with FAMCO and the event that just occurred. We are sure that with FAMCO we will substantially improve the level of service to our customers

in Egypt. IVECO is a brand that has proven itself able to take a bold approach to change over the years,” said Fabio De Serafini, IVECO Africa & Middle East business director. “This launch in Egypt pursues the brand’s vocation as a major player on the international and multicultural stage, while continuing to focus on its core values: technology, total cost of ownership, sustainability and business partnership.” IVECO is present in the Middle East with a dedicated and full range of models engineered for the local market. The brand operates across the area with 16 dealers and through more than 29 sales points. Moreover, more than 43 service points provide after-sales assistance to customers all over Africa.


Vehicles

Al-Futtaim Motors unveils Renault Trucks UAE’s first hybrid truck launches K Xtrem truck in Middle East

Renault Trucks debuted its heavy duty truck for extreme applications, the K Xtrem, at its Xtrem Days event held in Marrakech, Morocco last month. The K Xtrem is a 50t truck that has been developed by Renault Trucks for demanding situations, particularly quarrying. It has been designed for the most heavy-duty uses on the most extreme terrains, this vehicle comes with a reinforced chassis and an automated, reinforced Optidriver Xtrem gearbox that can handle even the toughest situations.

The Xtrem Days event invited 450 Renault Trucks customers from the Middle East, sub-Saharan Africa, Algeria, Morocco and Turkey. As well as joining the launch of the K Xtrem, clients were able to participate in a number brand workshops and were given the opportunity to test the newest vehicles in Renault Trucks' C and K ranges. According to Renault, the C and K Range of vehicles are, “designed to meet the needs of all types of clients whether they're working on the road, on a construction site or in extreme conditions.”

Hino’s exclusive dealer in the UAE, Al-Futtaim Motors has launched the country’s first hybrid truck at the 8th edition of the Cold Food Chain Conference, which was held in Dubai in April. The Hino 300 Series Hybrid lightduty truck features the world’s first hybrid diesel engine designed to deliver cleaner, more efficient transport solutions. Like the conventional petrol-engine Hino light-duty trucks, the hybrid variants are totally customisable and can be used with mounted chiller body, freezer body or dry cargo box, making them the ideal environmentally friendly transport solution for cold chain and cold storage services. “We have seen significant growth in the volume of light-duty trucks in the past three years,” said Ramez Hamdan, acting managing director of Hino at Al-Futtaim Motors. “This growth has been paralleled with serious environmental goals by the UAE Government, to which we have responded by introducing the 2017 Hino 300 Series Hybrid truck, the perfect sustainable commercial vehicle. He added: “It’s imperative for us to counteract the effects of harmful CO2 emissions, and our hybrid offering is

a proven solution for the commercial sector with an impeccable track record worldwide.” By employing a diesel Hybrid system, using a Euro 4 and EVV compliant 4L diesel engine matched to an auxiliary electric motor that is emission-free, the drive system significantly reduces exhaust tailpipe emissions when compared to a conventional diesel-engine truck, claims Hino. The Hino Hybrid emits significantly reduced emissions of carbon monoxide, carbon dioxide, particulate matter and nitrogen oxide. Hino Hybrid trucks also offer reduced running costs through greatly improved fuel economy and savings on maintenance costs, thanks to the myriad technologies available such as Idle stop, Regenerative braking, Easy Start and take-off assist, and Diesel particulate active reduction filter. From ice cold glaciers in Northern Sweden, to the sweltering deserts of Qatar, Volvo Construction Equipment takes on a very different challenge in the second episode of its brand campaign, ‘Building Tomorrow’, by profiling its machines helping to build the sustainable city of Lusail, Qatar.

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// NEWS

Marketing

Lusail City stars in new Volvo sustainability campaign

Swedish giant Volvo CE is using imagery of its machines deployed at Lusail City in Qatar as part of its ‘Building Tomorrow’ campaign which promotes sustainability. The second episode of the Building Tomorrow series takes Volvo CE to the north of Doha, Qatar, where Lusail City is being built. In temperatures reaching up to 50ºC, over 240 Volvo machines have been hard at work – enduring 24-hour days, based on a three-shift cycle – building a town designed to support 250,000 residents. Lusail has been under construction since 2009, and more than 45,000 workers are on site each day. The Volvo excavators, articulated haulers, wheel loaders and soil compactors are on site daily, clearing room for foun44

dations and underground tunnels. Though digging through the porous sandstone isn’t easy, it is the intense heat that provides the biggest challenge. “All machines must be equipped with air-conditioning units and operators are instructed to take regular breaks to prevent fatigue and

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heatstroke,” said Hadi Kaii, machine owner and Volvo CE customer at EIB Qatar. “Volvo CE is just one in many of companies involved in this project,” said Shahir El Essawy, business director of the Middle East and Africa at Volvo CE. “It has been an honor to work alongside Essa Mohammed Ali Kaldari

and his team in building this iconic city.” Part of Qatar’s ‘Vision 2030’ – which aims to transform the Middle Eastern state into a society capable of achieving sustainable development by 2030 – Lusail City represents an ambitious vision for the future of Qatar. Lusail is being fitted with a district cooling system, featuring 175km of piping – making it one of the world’s largest central cooling systems. This will save an estimated 200,000 tons of carbon dioxide emissions annually, limiting the harmful effects on the ozone layer. Moreover, a 24km waste pipe is being laid underneath the city, as an advanced and efficient way of disposing of human waste to recycling and treatment plants outside of the city.


Machinery

Rapid start for Klampfer crane on Novotel Sharjah Expo Hotel

K

lampfer Middle East has revealed that it completed the initial erection of its new Raimondi MRT152 crane on the Novotel Sharjah Expo Hotel in just over two days. The Sharjah-based company’s managing director Günther Hinterberger said the small footing size and mast size relative of the MRT152 capacity, has also been a huge bonus.

“This crane’s positioning has been less intrusive on the building it is being used to construct. The free-standing height of 44m provides the contractor considerable structure to build without having to worry about ties,” said Hinterberger. “We opted for the MRT152 due to its easy erection – with no large mobile crane needed to assist in the installation – and because both the maximum load and

the tip load are suitable for the project of this size.” Awarded to Klampfer Middle East in July 2016, the Novotel Sharjah Expo is the most recent addition to Sharjah’s hospitality and tourism industry comprising 200 rooms that fall under three categories, in addition to a business center and two meeting halls. Novotel is an international upper-midscale brand for business and leisure travellers with 471 hotels worldwide. Strategically located in Sharjah’s Al Taawun business district, the hotel is currently under construction at an estimated project value of AED120 with a projected completion date of September 2018. Tasked with the load lifting of shuttering materials, steel reinforcement, curtain wall components, pallets of blocks and cement, bags of sand, and scaffolding, the MRT152 is scheduled to be erected onsite for a period of 12 months, added Hinterberger. “The Middle East is a very important market for Raimondi, so during the design phase we take into consideration all the aspects related to cranes operating optimally in extremely hot climates. The electrical motor was designed and produced to be able to perform well at high temperatures. Using climate-appropriate materials, the motors are equipped with an intelligent cooling system under the monitoring of the crane control system,” said Eng.

Domenico Ciano, Technical Director, Raimondi Cranes. “One good example of how our control system adapts to the heat is that the fans continue to work even when the movement is stopped until the motor reaches a safe temperature. In the event that the fan motor malfunctions for any reason, the operator can advise by an alarm and the crane ceases movement in a safe manner,” continued Ciano. The MRT152, one of Raimondi’s most popular models, ensures strong performance in terms of load charts and working heights due to the three different types of tower sections available. Ground obstructions can be reduced using the special plinth design, allowing the crane to be positioned very close to buildings. Additional notable climate-specific features of the MRT152 include the gear box, electrical box and electrical components, together with the steel frame itself. The gearbox is filled with special oil that assures good lubrication despite high temperatures, and the electrical box and electrical components are installed inside a cooled box done by simple fans or by an air conditioning system. From structural point of view, the MRT152 Raimondi crane is built using steel that guarantees safety and stability in temperatures exceeding 50°C.

construction business news me // May 2017 //

45


// Machinery

Rocking on and on in Qatar SDLG wheel loaders prove their worth to Doha’s Al Maram International By Matthew Treanor

I

n its push towards completing its preparation for the 2022 FIFA World Cup, Qatar is heavily reliant on the quarrying industry to ensure that construction stays on track. Unfortunately, mining and quarrying in the Middle East is quite possibly the toughest application any machine could possibly face. Reliability is a must when the days are long, the temperature extreme and the work relentless. It is impressive then that three Shandong Lingong Construction Machinery Co Ltd (SDLG) wheel loaders are currently working day and night feeding crushing and screening equipment in Qatar, without any significant downtime. The SDLG LG958L wheel loaders have racked up close to 2,000 46

Our customers excavate large rocks from their quarries and then give them to us to be broken down into bespoke sizes.” operational hours in more than four months at a quarry in Qatar. The site is owned by Doha-based contracting company Al Maram International, one of the country’s leading specialists in earthmoving and material

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handling. On site the company uses crushing and screening equipment to reduce and sort limestone, primarily for asphalt applications for its customers. “Our customers excavate large rocks from their quarries and then give them to us to be broken down into bespoke sizes,” says Aby Joyce, divisional head of the company’s crusher department. “We are using the LG958Ls to feed the crushers and sub base mixing plant, and load the processed aggregate into waiting dump trucks and trailers.” Al Maram ordered the machines in October 2016 from regional dealer Arabian Agencies Company (ARACO), and within a month they had already been delivered and were in operation on site. The LG958Ls were the first SDLG machines Al Maram has purchased.


Who is SDLG? Shandong Lingong Construction Machinery Co Ltd (which is typically referred to as Lingong) is one of China’s leading manufacturers of construction equipment, which it produces under the SDLG brand. It is one of the world’s leading suppliers (by volume) of wheel loaders. The company’s headquarters are in Linyi, China. SDLG has been a Volvo

“For the past four months, the machines have been working two shifts a day, equalling between 16-18 hours in total,” said Joyce. “During that time we have encountered very few technical issues.” This is due in no small part to LG958L’s powerful traction, breakout force and evident reliability. When developing the wheel loader, SDLG opted for the use of modern high-performance materials and refined the development by utilising computer-assisted design (CAD) techniques. Before entering into active duty the company pushed it through intensive and systematic test programmes. The result has been an increase to the life of vital components and reduced operating costs. Ultimately in quarrying equipment uptime is absolutely vital where a breakdown can damage the bottom line and entire operation. “Even when we do encounter issues, we receive fantastic customer care support from SDLG,” Joyce enthuses. “If we have any issues, ARACO will arrange for a service technician to be on-site within 2-3 hours, day or night. This has enabled us to keep downtime to an absolute minimum. We will definitely be renewing our contract when it expires.” SDLG’s fully supported service network was one of the primary reasons Al Maram International chose to purchase machines from ARACO, as was its competitive pricing. “Not only was the initial investment of the machines relatively low, but the operating costs are also very reason-

For the past four months, the machines have been working two shifts a day, equalling between 16-18 hours in total. During that time we have encountered very few technical issues.” able,” Joyce says. “Our productivity is increasing while our costs are being kept down. Plus, improved ergonomics, increased comfort and excellent allround visibility ensure safe and pleasant working conditions for our operators.” Al Maram International is respected in Qatar for its advanced, effective and dependable technical and engineering services in the field of earthworks, civil construction, transportation and portable cabins. It has set its sights on becoming the number one partner in industrial projects in the country. “There is confidence that the country’s hosting of the FIFA World Cup in 2022 will generate a building surge,” said Joyce. “If we require more machines to meet future demand, we will of course look to SDLG. I have no doubt they will make a positive difference to our company in the future.”

subsidiary since 2007, and has manufacturing facilities in China, with another plant being built in Brazil. SDLG’s complete line includes excavators, backhoes, soil and asphalt compactors and motor graders. SDLG products are targeted to the value segment and are known for their reliability and robust performance on site. The company has an established and experienced dealer network in the export markets in which it operates. This network is dedicated to providing excellent parts availability. Lingong was founded in 1972 and currently employs 3,150 people. Last year it launched its largest ever motor grader, the G9260. Powered by a Tier 3 SD13 engine, the G9260 features optimized weight distribution, an impressive 136 kN tractive force and is equipped with a hydraulically powered wet brake system. The double fuel tanks in the G9260, the first of their kind for a Chinese machine, ensure high driving force and reliability SDLG said. With a maximum cutting depth of 825mm, the blade of the grader is 4.27m wide and the cutter diameter is 1626mm. The G9260 has a forward and reverse speed of 44.2km/h and 31.8km/h respectively.

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47


// Road building technology

The future of roadbuilding Embrace technology or be left behind, says Kuno Kaufmann director of research & development at Ammann By Matthew Treanor Technology is not new to the road-building industry. But if you look back, and then forward, you’ll realise we’re in the midst of a technological revolution that will benefit those who embrace the changes – and leave behind those who don’t,” says Kuno Kaufmann director of research & development at Ammann. Kuno has authored a report that looks at the impact of emerging technology in road building on contractors, and he says that if this revolution could be described in a single word, it would be ‘data’. More jobsite information is being gathered, stored, documented and analysed than ever before, he adds. “If we were able to add a bit more description beyond ‘data’, the phrase ‘real time’ would be most appropriate,” he says. “We have hard information on what is happening right now. That knowledge enables jobsite adjustments that lead to better machine utilisation, reduced fuel consumption and dramatic quality improvements.” The associated cost savings are enormous, Kuno argues, and those who don’t take advantage of the opportunities will increasingly be unable to compete in the construction industry. “This particular transformation is the result of combining advances in telematics (the use of data) with machine control (real-time response to 48

that data on the jobsite – in particular, machine positioning),” he says. “What machines does this apply to? In road-building applications, we’re typically talking about soil and asphalt compactors. Yet other machines – pavers, graders, dozers, excavators, haul trucks and more – are now playing a role. Their emergence is yet another significant development. “Currently the data is transmitted, stored and analysed elsewhere – typically in the cloud – and used to optimise machine utilisation. To be more specific, let’s now define telematics as collecting data, then organising it for site management and machine monitoring, and finally using it to optimise the working machines.”

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Machine control, meanwhile, is defined as monitoring and controlling machines and processes ‘locally’, which means on the jobsite. Communication is essential to local control. “The machines need the ability to talk to one another. As they gather the data it is processed and its relevance quickly communicated to the adjacent machine, which can adjust based on the success (or failure) of its neighbors,” he says. “For example one roller can tell another, ‘I’ve already covered this area, but no one has been over there’. “This communication is done in real time, which is significant. Adjustments can be made immediately, instead of having to go back to the office and dump data into a spread-


Qatar’s biggest asphalt project “It is the biggest project in terms of quantity of asphalt in Qatar at the moment,” said

Youssef Ghadban, plant manager for Al Jaber &

Makhlouf, which is manufacturing the asphalt.

Al Jaber & Makhlouf has built a considerable presence in

Qatar and remains one of the region’s leading infrastructure and civil contractors. It operates four plants in Qatar as well as five others in Lebanon. The company says productivity

sheet to spot trends and opportunities. Those adjustments aren’t just for tracking machine movement but also to position the blade, bucket, screed or drum.” Tracing the history of technological progress since the launch of compaction meters in the 1970s, to the introduction of measurement and control systems like Ammann Compaction Expert (ACE) in the 1990s, to the later use of GPS, he says the industry is now towards the end of an adoption phase with the operator firmly in control of the machine and technology. “We continue to make adjustments – and provide our customers with the ability to do the same, he says. “For example, the technology can be modified to precisely fit customer needs; previous technology was too inflexible. Today’s systems are easily adjusted yet bring new levels of consistency too. “The interfaces also are important. Previous technology often overwhelmed operators with information. Now it shows only what is needed. In some cases, it’s amazingly simple with a green light meaning ‘go’. What’s essential is the operator remains the master of the jobsite. He or she is now able to maximise productivity and make sure the machine and the technology are working in unison. This is easier than ever to accomplish, but certainly maintains the relevancy of operators. They are the ones who turn the technological investment into cost savings.” He believes that contractors of all sizes should benefit from embracing new technology: “Not too many years ago smaller contractors saw the technology as something meant only for larger businesses. The theory went that bigger jobsites and fleets were required to make the technology worth the investment. “It was a different story for smaller contractors. They were less likely to pay for “experimental” technology that would require lengthy training and, as some initially believed, few quantifiable benefits,” he adds. “Improved telematics once again changed that by providing hard numbers on fuel and labor savings, passes avoided, and a host of quality control efforts. Those matter every bit as much to small contractors, too.”

was a must on the large-scale construction of Doha’s

new orbital highway. A total of 3 million tonnes of asphalt

manufactured by the company over two years is required by a project which will help Doha link to its ports and beyond to the Saudi border when it opens in 2018.

“It was a challenge for us because we were producing

around 500,000 to 600,000 tonnes yearly,” said Roger

Makhlouf, managing sirector of Al Jaber & Makhlouf. “Now

it will be an average of 1 million to 1.5 million yearly, so it’s a big move and it was a big challenge for the company – and for Ammann too because we had to customise plants for this project.”

According to Al Jaber & Makhlouf, the production

demands have made plant reliability crucial. The ability to make varied mixes was another requirement. Al Jaber &

Makhlouf utilised two Ammann ABA 340 UniBatch Asphalt-

Mixing Plants on the ring road project. The company credits Ammann support and the as1 Control System for helping it keep pace with the demanding highway project.

“The as1 is the number one programme,” said Rabih

El-Kattar, plant manager at Al Jaber & Makhlouf. “It’s easier. It’s not complicated, especially when changing parameters. If you have any problem with this plant, the computer can show you how to fix it.”

The UniBatch plants and as1 Control System helped the

company meet demands for varied recipes, as different

mixes were required for base, intermediate and wearing courses. Quality was essential as well.

“The government is always looking for the best quality

to apply on the road on the projects,” said Ghadban.

“Together with our partner, Ammann, we are looking to achieve the type of quality they are asking for.”

“We consider Ammann to be our partner,” said Makhlouf.

“We have full support from

them. We are connected on a daily basis, and we have

their full backup and full support at any time. We believe the software that they have is one of the best and is giving us

high precision in our production and very high consistency.”

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// Road building technology

Companies such as Trimble realised this from the start, notes Kuno, pointing out that they spent a significant amount of time and money developing products for smaller contractors. “The theory was that the percentage of savings mattered more than the dollar amount, and it made sense,” he says. “A savings of, say, 20% makes a difference whether you’re operating a single skid steer machine or a fleet of rollers and pavers. Trimble also understood that local (on the jobsite) control and real-time communications come into play for smaller contractors, too. General contractors increasingly will want subcontractors connected to the larger fleet.” The percentage of smaller contractors using the technology is rising, and that number will continue to grow, according to Kuno. “Governments are slow to adopt change, but some are beginning to require the use of this technology. It eventually 50

will become the norm when bidding on jobsites, whether you’re a large or small contractor.” Machines will continue to improve their data gathering, which ultimately will lead to process improvements that will make the industry even more efficient. Data on how machines previously performed in certain applications and conditions will be readily available, from the initial bidding through the final production on the jobsite. “The communication between the machines will improve as well, which will be necessary to take advantage of all the data being gathered in real time,” he explains. “It stands to reason that machines lacking this communication capability will be phased out of jobsites. This need for communication creates another significant requirement: Machines built by the fiercest manufacturing rivals will need to talk to one another. “The reality is jobsites feature contractors who prefer varied brands. If

// construction business news me // May 2017

machines aren’t able to communicate across brands, the benefits will be minimised,” he says. “Such a communication problem also would make some contractors less competitive. For example, if a contractor used Brand A, and can only talk to Brand A machines, his bid might be passed over in favor of a contractor who uses Brand B, which can communicate with any and all machines.” He continues: “Also, please remember that data is most helpful when used across multiple phases of a project. That means a grader needs to talk to a soil compactor, and a paver to an asphalt compactor – and many other combinations including excavators, motor graders and even skid steer loaders. The use of all these various machines, and their need to communicate, makes it even less likely that only one brand would be represented.” He claims that Ammann is prepared to work with other brands despite some of its competitors “trying to


keep their data collection and communication equipment proprietary.” “We think this is shortsighted,” he states. “We remain committed to serving our customers on their terms and want them to use our equipment by choice. We also want them to remain competitive in the bidding process and realise their success is our success, too. If you agree that the machines will have to communicate with each other, it then follows that the tools for collecting this information will become standardised.” In this vision of cooperating brands and interacting technologies, data and communication could happen in real time: “That means the hardware will be mostly standardised as well and integrated into the machines.” According to Kuno, there are three components to telematics. The first is a machine with the proper hardware to collect the data, the second is the communication of the information to the cloud, and the third is the cloud itself – including the interface that makes that information useful. “At the moment, many machines utilise hardware from Trimble or Topcon,” he says. “We see the future as having the hardware integrated into the machine by the manufacturer. Ammann hardware will be built into every Ammann machine. This evolution is actually good for companies such as Trimble and Topcon. They will continue to partner with manufacturers to develop the hardware.” The biggest opportunities, he adds, lie in the processing, documenting and analysing of the data, “the parts of the equation that come after the hardware. All data will go to the cloud, and how it is made useful from there – in the easiest manner possible – will be how these companies thrive in the future. The real opportunities for companies such as Trimble will be developing the interface that makes the raw data useful.” He warns that contractors shouldn’t expect to see dramatic cost savings from standardised hardware. Hardware is likely to cost less, but the enduser is likely to have to pay more

Improved telematics once again changed that by providing hard numbers on fuel and labor savings, passes avoided, and a host of quality control efforts. Those matter every bit as much to small contractors, too. ”

for data-related services. “Think of your mobile phone: Over time the purchase price is much less than what is spent on monthly service,” he says. “Governments will have a role in the future as well. As they catch up to today’s technology, governments are likely to increasingly require the use of telematics for a contractor to participate. Once again, we’re in a situation where various brands will have to set rivalries aside.” He pinpoints the UK and German governments as leading others in Europe and the US in a process in making these requirements as mandatory. “There have been some starts and stops. Some governments began such a process and took a step back, often for legal reasons,” he says. “But rest assured, these mandates are coming. Governments want to have the information, such as compaction data, to improve their processes and increase the life of roads. At Ammann, we also see the future as connecting more steps of the process, particularly asphalt plants. For example, if an asphalt compactor was falling behind, it could communicate to the paver – and ultimately the plant – that mix production should be adjusted,” says Kuno. “Autonomous machines – essentially those that don’t require an operator – are on the horizon, if still a bit of a distance from

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51


// Road building technology

The 3rd Bridge of firsts The 3rd Bridge and Northern Marmara Motorway opened in Istanbul late in the summer of 2016. While the entire motorway is a significant undertaking, the 3rd Bridge is “the bridge of firsts,” according to many published reports. At a width of 59m, it is the widest suspension bridge in the world. At a length of 1408 metres, it is also the longest-spanning bridge with a rail system. Furthermore, at a height of more than 322m, it is the world’s highest tower on a suspension bridge. The project is expected to have a significant impact on the Turkish economy. “The Northern Marmara Motorway and the 3rd Bridge Project are symbols of modern Turkey and will bring Turkey closer to its objective of being one of the biggest 10 economies of the world in 2023,” said a statement prepared by IC Ictas – Astaldi Consortium (ICA), which is executing the project. The motorway and bridge require a substantial amount of asphalt, and two Ammann ABA 340 UniBatch Asphalt-Mixing Plants manufactured much of it next to three older Ammann Asphalt Mixing Plants. While specific volume numbers are not available, an Ammann representative said: “The main challenge was there were millions of tonnes of asphalt to be produced in a very short time. Two UniBatch 340s produced more than 2 million tonnes of asphalt in one year.” The Ammann plant met the daily production demands and manufactured a bituminous course, a binder course and a wear course. At the later stages of the project, a durable, rubber-modified asphalt called tecRoad was used.

52

We see the future as having the hardware integrated into the machine by the manufacturer. Ammann hardware will be built into every Ammann machine. This evolution is actually good for companies such as Trimble and Topcon.”

// construction business news me // May 2017

arriving. There are many interesting developments but a safety hurdle – sometimes real, sometimes more a matter of perception – will remain for some years to come.” Ammann has developed its won prototype for an autonomous plate compactor. Kuno says that it is only logical to expect such technology be extended to other compactors. “The message we share with our customers is one of a continued partnership. We are committed to developing the technology necessary to improve their data gathering and real-time, local control,” says.” The good news is that the hardest challenges already have been overcome. Now it’s time for all contractors to embrace the technology. Their survival depends on doing so.”


The new workforce The All-new Ford Trucks Construction Series is force to behold. Ready to carry the load, no matter how challenging the terrain; from the deepest mines to the toughest construction sites. www.fordtrucks.com.tr

Ford Trucks Sharing the load

Bahrain Iraq Jordan Oman Qatar Saudi Arabia United Arab Emirates United Arab Emirates

– Almoayyed Motors – Manama / sheehanford@almoayyed.com.bh – Al Kasid Commercial Agencies Ltd - Erbil, Baghdad / ahmed.ali@al-kasid.ae – The Commercial & Industrial Company - Amman / w.albajjali@cic.com.jo – Mohsin Haider Darwish LLC - Muscat / bhaskar@mhd.co.om – Almana Motors Company W.L.L – Doha / oghobrial.aa@almanagroup.com – Al Jazirah Vehicles Agencies Co Ltd – Riyadh / mbuhsuli@aljazirahford.com – Al Tayer Motors – Dubai / selzokm@altayer.com – Premier Motors – Abu Dhabi / selzokm@altayer.com

TRUCKS


// Commercial Vehicles

Uptime upstart The Croner could be UD’s winning middle weight challenger By Matthew Treanor

J

aidah’s launch of Japanese manufacturer UD Truck’s heavy duty Quester truck coincided with last year’s Project Qatar event. A year down the line and like its larger brother before it, Qatar is certain to be one of the first stops in the Middle East for UD’s latest truck, the Croner. While the region had to wait three years for the Quester to find its way into distributor showrooms, the medium duty truck enters the region at the same time as other growth markets such as Asia, Africa and South America. UD Trucks is owned by Volvo Group, which in addition to Volvo Trucks also has France’s Renault Trucks and the US’ Mack Trucks in its portfolio. Volvo has taken the brave step of allowing its truck brands to function autonomously, effectively making them competitors in many markets, but the brief for UD is to fuse the Group’s technological know-how with its own understanding of the needs of purchasers at the value-end of the market. As CBNME learned last month from its interview with the senior executives steering UD’s path in international markets, UD has always aimed to provide the “truck that the world needs today”. When you consider that more fleets in the region, even in Qatar, are becoming more and more concerned about their bottom line, a truck that offers versatility, robustness and reliability without the price tag of the premium brands should be a more attractive proposition than ever. It may not be the biggest name on the road and some may be concerned about its residual value given it is a relative upstart compared to other established trucks but UD is convinced 54

that it offers a compelling, to use the industry jargon, value proposition. (Perhaps UD should change its strapline to “the truck the world can afford today”?) The Croner has been developed to be a reliable and versatile truck range built with robust and quality components delivering extra productivity and superior uptime, says UD. The company also says that it has concentrated on understanding customers’ demand and business needs during development and focused on the simple concept of saving time. “UD Trucks believes that more time spent on the road and less time in the workshop adds up to the success of our customers’ business. It is our aim

// construction business news me // May 2017

for Croner to make every moment count, through maximising productivity and minimising downtime on every run our customers make,” says Jacques Michel, President, Volvo Group Trucks Asia & JVs. The truck is named after the god of time in Greek mythology, Croner has been designed to excel in the medium duty segment and compete in growth markets. Rather than stuff its brochures full of endless configurations, UD has offers options for three gross vehicle weight (GVW) models: MKE, LKE and PKE; and their wheelbase variants. All together you have a relatively lean total of 21 basic configurations which can suit a variety of industry demands including construction and material


transportation. Additionally, air suspension which is becoming increasingly popular is available on all variants as an option for haulers wanting to protect cargo especially when travelling on rough road conditions. “The superiority of Croner comes from the best of three worlds – UD Trucks’ strong Japanese heritage and craftsmanship, Volvo Group’s global technology and sourcing, and local manufacturing and customer support. Further to that, with UD Trucks’ Ultimate Dependability standard and Gemba spirit incorporated in every aspect, each component is the result of years of development and stringent stress testing – a true testament to the Japanese hallmarks of quality,” adds Michel. The ruggedised front end of the truck fits suitably with Volvo Group’s other mainline trucks and compares favourably with other vehicles in its price bracket. Driveability and ride comfort is solid if not spectacular compared to its more expensive competitors but again stands up well to other brands of a similar price. There is also the option for automatic transmission which ran smoothly during CBNME’s testing and if you are a fleet buyer that is awake at night worrying about your repair and maintenance cost it should be a serious consideration. “As drivers spend a good amount of time on the road, we at UD Trucks leaves nothing to chance, and that includes safety and drivability. With superior braking and handling features, Croner keeps customers’ drivers and their fleets in prime condition,” says Nobuhiko Kishi, Senior Vice President, Brand and Product, UD Trucks. “As for drivability, Croner’s automatic transmission option can be crucial for markets like South Africa where it is facing serious driver shortage due to the strenuous demands on drivers, especially in long haul driving. Croner can help customers attract drivers as this option provides ease of drive and reduce fatigue for both experienced and inexperienced drivers.” He adds: “Similarly, automatic transmission can be seen as a game

Croner range of applications

Croner chassis

Specifications GVW: 12-14t (LKE) Cab: 2.1m Day/Sleeper | 2.3m Sleeper GH5E Engine power: 180 hp (Euro-3)/210 hp(Euro-3, Euro-4)/240 hp(Euro-4) Transmission: Manual 6S/Automatic 6S

changer for the truck industry in the Asia region as it helps lower cost and downtime, as manual transmission is more susceptible to wear-and-tear especially to its clutch in a long run.” According to Kishi, Croner’s superior uptime stems from its reliability

due to robust components such as its driveline and new chassis frame that are more durable and allow for longer time between scheduled service intervals. Fuel is a high expenditure for fleet owners considering the number of trucks and journey they make. “Croner is one of our most fuel efficient trucks ever. It utilizes the fuel needed efficiently without waste, thanks to the new GHE engine series, automatic transmission, a built-in fuel couch, and a more aerodynamic cab which reduces the coefficient of drag (CD) more significantly by 5%,” says Kishi.

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// Vehicles

On track in Qatar Ford Trucks explains why it is now a major player in Qatar Interview by Matthew Treanor

F

ord Trucks has always embraced its mission of providing innovative automotive products and services beneficial to the community since 1960. The passion of serving the best to our customers lead us to develop tailor-made solutions and competitive products to meet and surpass a variety of customer needs and expectations. In the pursuit of such perfection, Ford 56

Trucks has also partnered with Almana Motors Company in Qatar. This partnership with a market-leading company bore fruit with the launch of the Almana Heavy Trucks business in Qatar in January 2016. Since then, Ford Trucks has supported the Qatar market through our dedicated Ford Trucks Team based in Dubai working in tandem with the locally based dealer. We formally entered the Middle East

// construction business news me // May 2017

market with the founding of our Dubai regional base in 2014 and have rapidly established ourselves in the construction and waste management sectors. We remain determined to prove that our robust truck platforms can be reliable and robust partners to fleets across the region. 2016 turned out to be a crucial year for our operation in the Middle East. Kick-started by the launch of Almana


Heavy Trucks in Qatar, Ford Trucks later opened a new office in Riyadh to bolster our burgeoning Saudi Arabian presence and ended the year with the introduction of the expanded, and beefed up, 2017 Construction Series of vehicles. Coming into 2017 we were poised to fully capitalise on the opportunities being presented to us, particularly in a Qatar market where infrastructure spending is being prioritised and the preparations for the FIFA World Cup 2022 are reaching fever pitch. Despite a tough 2016, Qatar is anticipating a real GDP growth of 3.4% in 2017 supported by the government’s strong leadership and direction in policy. The current requirement for 65% of road construction and 90% of stadium projects to be completed for the FIFA World Cup 2022 indicate the feasibility level of our expectations of growth. And overall, on-going big construction projects in Qatar have reached a level and amount which cannot be underestimated. Truck charge Leading Ford Trucks' charge in the market will be Almana Heavy Trucks and our 2017 Ford Trucks Construction Series of vehicles – headed by the 4143M and 3543M mixers alongside the rugged 1843T tractor head. Ford Trucks is mainly targeting the concrete segment and focused on enlarging the presence of the robust Construction Series. We have managed to establish ourselves in the market by showing a willingness to get close to contractors and fleet owners while supporting them with a rigorous aftersales effort. Rather than merely pushing our products to meet customer demand for vehicles in Qatar, we are prepared to get out in the field and provide help, advice and assistance wherever and whenever it is needed. From the customer’s perspective, Ford Trucks always aims to be a consultant as well as a fellow traveler. Our main purpose is not only providing the products but also sharing the load in any field or on any road by being supportive whatever conditions our customers might face. Therefore, from day one, our intention is to let them feel our support while delivering a well-prepared training

The main goal of 2017 is to maintain our continuing success in the ready-mix segment and penetrate new segments such as waste management ” session to customers’ teams and ensure we offer competent aftersales support with professional technical teams in our dealer’s mobile workshops. Before officially launching its trucks into the market, Ford Trucks spent two years ensuring that product development was leading to a vehicle that was ready to deal with the extreme demands of the Middle East. The trucks and our hot climate package, a series of adaptations, including engine components, developed especially for heavy truck buyers in the Gulf, underwent extensive

testing ahead of the initial unveiling. The 2017 Construction Series represents another major step forwards and boasts the new Ecotorq engine which improves the previous ratings of 350PS and 1,400Nm of torque up to 430PS and 2,150Nm. The extra power is bolstered by greater control via a new 400kW engine break that enhances the driver’s ability to negotiate difficult and sloping sites. An optional 600kW Intarder can boost breaking capacity to 1,000kW. The Ford Trucks Construction series equipped with our Ecotorq engines displays sheer power and stability under various conditions therefore a 12% market share in the ready-mix segment has been achieved. Mostly, Ford Trucks 4x2 Tractor Series for construction and 6x4/8x4 rigid chassis for tipper applications have been well-received and preferred by the Qatari market. The positive reaction by the market has led Ford Trucks to increase our investment in Qatar. Hence, the new Construction Series and all-new 6x4 and 8x4 Tractor Series will be officially launched for first time in the GCC. The main goal of 2017 is to maintain our continuing growth and success in the ready-mix segment and penetrate new segments such as waste management in the public works sector.

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// Supplier News

Temporary power

RSS orders JCB gensets worth $11.2mn

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ubai-based Rental Solutions & Services (RSS) has bought more than 300 JCB generator sets in a deal worth $11.22mn. The order is the biggest yet for JCB’s newly-

launched range of RS generators specifically designed and manufactured in the UK for the global rental sector. The first five units are already in service in Oman supported by JCB dealer Muscat

Overseas Group. They are being used by a global oil and gas company which needed urgent standby power to support their operations. RSS Operations director Garry McMahon said: “We have a choice of generator suppliers in the Middle East, but we chose JCB Power Products as its range is the best rental selection we have seen. The brand presence of JCB in our region also ensures that our customers know we are working with quality equipment and providing the best possible back-up.” JCB Power Products MD Jon-

athan Garnham added: “JCB Power Products launched its RS rental range just a year ago and it is proving extremely successful in a very competitive global market where JCB provides unrivalled service and support.” RSS offers rental generators across the Middle East, providing power for construction sites, large infrastructure developments, and petrochemical facilities. The company was established in 2007 as a global provider of rental power, temporary cooling and mobile water solutions.

Coastal Qatar to supply seats for World Cup stadiums Coastal Qatar has been awarded a contract to supply and install 140,000 seats for three of the venues for the 2022 FIFA World Cup. The seats will be manufactured in a Doha-based factory that will produce 500 seats a day for Al Wakrah Stadium, Al Rayyan Stadium and Al Bayt Stadium. The first two stadiums will have 40,000 seats each while the third will have 60,000. Hassan Al Thawadi, secretary general of Supreme

Committee for Delivery & Legacy (SC) which awarded the deal, said: “Creating an impact on Qatar’s economy was a key component in our bid to win the Fifa World Cup hosting rights. “By facilitating local contractors and companies to take part in the construction of the infrastructure for the tournament, we are delivering one of our key legacy commitments and ensuring the benefits of the 2022 Fifa World Cup are felt across the country.”

Adhesives

H.B. Fuller opens new office in Dubai H.B. Fuller has opened a new office in Dubai to support the company’s growing customer base in the Middle East. The company says it will offer manufacturers an alternative source for adhesives and sealants in a market that has so far been dominated by one other global supplier. The new office will serve as the base of operations for Harsh Gupta, regional general manager for India, the Middle 58

East and Egypt, who will set up new teams to support the customers in these regions and the company’s growth strategy. Harsh, a nearly 20-year vet-

// construction business news me // May 2017

eran in the adhesives industry, and his team will be supported by H.B. Fuller’s global network of manufacturing facilities and technical centres, including those in Egypt, India and Germany. H.B. Fuller serves customers in more than 100 countries across a variety of markets, offers solutions for the hygiene, construction, oil and gas, packaging, graphic arts, filtration, and the tapes and

labels markets with a focused approach for the Middle East and Egypt regions. “The way we will create competitive advantage in the Middle East is by being more nimble and targeted than our other large competitors,” said Gupta. “Compared to some of our smaller competitors, we have global scope and strength to take new consumer product ideas and make a global impact.”


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// Supplier News

Technology

HVAC

Leminar inks exclusive UAE distribution deal

Siemens to set up global logistics HQ in Dubai

Siemens has unveiled plans to set up its global logistics headquarters in Dubai in the near future, including its portfolio for airports, cargo infrastructure and ports in the emirate. The German company says it will target the site of Expo 2020 Dubai as the future location for this business after the exposition ends. Siemens’ Managing Board member and Chief Technology Officer Roland Busch, said: “This strategic decision highlights Dubai’s significance as a major player in global transport and logistics, with some

of the world’s biggest airlines and ports operating in and around the emirate. “Siemens wants to further expand its operations in order to be close to key customers and markets. The Expo site would be a perfect match, featuring state-of-the-art facilities, infrastructure and technology, coupled with enviable transport connections.” He added: “We are committed to contributing to Dubai’s economic development goals with the latest innovations in technology. By using digitalization and leveraging MindSphere, our open, cloud-based IoT operating system, we support growth and boost efficiencies in logistics.” All levels of value addition would be represented locally, including global management and strategy, innovation, digitalization software development, sales, assembly and production.

Leminar Air Conditioning Company has signed an exclusive agreement with Kuwait Insulating Material Manufacturing Co. (KIMMCO) to distribute Climaver, its lightweight pre-insulated ductwork system, in the UAE. The product, which was introduced to the market in early 2016, is an alternative to traditional sheet metal duct systems and meets stringent thermal, acoustic and fire performance requirements. Mark Westermayer, Marketing Director of KIMMCO, said: “Climaver offers great value to the local HVAC industry and we wanted to make sure it reaches the consumer through a professional and reliable channel. Leminar is a business associate of over 20 years and we are confident that our product has a great future with them.” Pramodh Idicheria, Executive Director, Leminar Air Conditioning Company, said:

Hydraulic tools maker Larzep to grow Middle East business Hydraulic tools manufacturer, Larzep is expanding its footprint in the Middle East and has appointed a dedicated commercial manager and distributor for the region. Based in north west Spain, Larzep manufactures single and double acting high pressure cylinders, pumps and powerpacks, torque wrenches, industrial tools and specials. The company provides high performance tools to oil and gas, construction and engineering companies in the UAE, Oman and Qatar. Adel Mahdy has been appointed Larzep’s com-

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mercial manager – Middle East, and Applied Engineering Services Industrial in Dubai as the official distributor for Larzep’s full range of industrial tools in the Middle East. “Until now companies in the Middle East have either bought Larzep tools direct from Larzep or through local resellers. We believe there are significant opportunities in the region to expand the use of Larzep tools,” said Adel Mahdy. “In appointing Applied Engineering Services, Larzep is working with a partner that has many years’ experience of working with high pressure hydraulic tools.”

// construction business news me // May 2017

“The demand and uptake of fire-resistant ductwork has spurred with regulatory authorities emphasising on fire safety in construction. Climaver is an ideal product for our clients as it meets Euroclass and BS fire performance properties. We are always looking to bring more and more efficient products under our umbrella.” In addition to Climaver, Leminar is the largest stockist for KIMMCO pipe and duct insulation as well as its Clean Liner, a highly efficient acoustic material that is used to line air conditioning ducts, wall and ceiling of acoustically sensitive areas or facilities as home theatres or studios, curtain walls.


// Event review

Gulf Real Estate Awards Cream of the region’s property industry recognised with 20 awards

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ubai Land Department (DLD) concluded a successful first edition of the Gulf Real Estate Awards 2017 in April, attracting industry leaders from across the region. The event is inspired by the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and his vision of positioning Dubai as the regional capital of real estate innovation. The winners were presented at a ceremony in the presence of a number of prominent real estate figures, honouring the best achievements across 20 categories. The department received 150 submissions from the UAE, Saudi Arabia, Oman and Qatar. His Excellency Sultan Butti bin Mejren, Director General of Dubai Land Department, said: “We would like to sincerely congratulate all award winners and wish all participants the best of luck for next year’s edition. “We would also like to assure all of our partners that the Gulf Real Estate Awards will continue to evolve year after year in line with Dubai’s growing status, and confirming the Emirate as a centre of global real estate innovation.” The awards programme has also demonstrated both the success of the real estate sector and its ongoing development, underscoring its positive role in supporting national economies. Mahmoud Al Burai, Executive Director of Dubai Real Estate Institute (DREI) at Dubai Land Department, added: “We extend our thanks and appreciation to all parties and individuals who contributed to the success of the first edition of the Gulf Real Estate Awards. “Particular thanks go to ‘Awards International’, all our sponsors, including our Headline Sponsor Takaful Emarat, our Partners Cavendish Maxwell and Harbor Real Estate, and our Media Partners BNC Publishing and Gulf Property. “We would also like to express our gratitude to our jury members, who have 62

Best Real Estate Project in the Luxury Residential - Al Barari Firm Management

Winners of the 20 categories: • Best Real Estate Registration Trustee - Tamleek Real Estate Registration Trustee • Best Architecture Company - Bin Ghatti Developers • Best Media Communications - Property Time • Best Mortgage Provider - National Bonds Corporation • Happiest Community - Diamond Developers (Sustainable City) • Best Facility Management Firm - Emaar Community Management • Best Smart Real Estate Project - KLEINDIENST (The Heart of Europe) • Best Customer Experience in Real Estate - P.K Properties • Best Real Estate Developer – Sustainable ‘Green’ Development award for Diamond Developers (Sustainable City) • Best Real Estate Project in Commercial – Retail award for Al Mouj Muscat (The Walk Retail) • Best Employer in Real Estate - KAIZEN Asset Management Services • Best Real Estate Project (Hotel) - Enshaa – Palazzo Versace Dubai • Most Innovative Real Estate Marketing Campaign - SPF Realty • Best Real Estate Portal - Emaar Community Management • Best Real Estate Project in Affordable Housing - Dar Wa Emaar Real Estate Investment & Development Company • Best Real Estate Project for Commercial Offices - Hopkins Architects • Best Owners Association Management Firm - Luxury Owner Association Management Services • Best Real Estate Project in the Luxury Residential - Al Barari Firm Management • Best Real Estate Project – Master Development for Damac Properties • Best Real Estate Brokerage Firm - Aqua Properties

been keen to pursue credibility, integrity and transparency to the highest degree in order to select and honour the best achievements, making them models to be followed by the whole region.” Mark Hamill, Managing Director for Awards International UAE – the organisers of the awards – said: “It’s important professionals have one stand out event giving all companies, big and small, an equal chance of recognition. Having a

// construction business news me // May 2017

fully transparent awards process makes this event special – knowing you’ve beaten the best on merit alone does wonders for individuals and companies. The scale on which the real estate sector has embraced these awards has been fantastic, bringing huge credibility to our finalists and winners. A massive thanks to all our judges, sponsors, and especially DLD, for making this an event that really matters.”


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// Save the date

Save the date Mark your calendar

May

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May

15-16

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Construction Innovation Awards Qatar Grand Hyatt Doha The Construction Innovation Awards will celebrate the individuals and companies keeping Qatar’s construction sector on an upward trajectory as the country continues to invest in its development ahead of the FIFA World Cup 2022. Project Qatar 2017 Doha Exhibition and Convention Centre Project Qatar is Qatar's leading construction fair. In 2016 over 1,050 companies and brands from 38 countries exhibited at the show and even more participating companies are expected in 2017. The event provides a unique platform to network and generate new business opportunities in the Qatar construction sector. Urban Community Development Middle East Forum Dubai, UAE This two-day conference will provide a strategic overview of urban community developments whilst identifying strategies and solutions to develop sustainable, integrated communities that respond to end user needs as well as find the right solutions to develop costeffective and high quality communities.

// construction business news me // May 2017

May

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Aluminium Middle East 2017 Dubai International Convention and Exhibition Centre, UAE The event featuring over 150 exhibitors and attracting over 3,500 visitors will be showcasing the industry’s latest solutions covering plant, machinery, accessories and equipment for aluminium extraction, processing and refining. Hardware+Tools Middle East Dubai International Convention and Exhibition Centre, UAE Hardware+Tools Middle East is the region’s only dedicated trade fair for Tools, Hardware, Materials and Machinery. The show represents vital aspects of this ever-growing industry to network with international manufacturers and suppliers, find a variety of brands across cost ranges and evaluate the market. Index 2017 Dubai International Convention and Exhibition Centre, UAE Now in its 27th year, the INDEX Design Series is predicted to smash last year’s record visitor and exhibitor numbers and bring close to 40,000 interior designers, suppliers, architects and project managers to Dubai in May.


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// Editor's pick

Construction bouncing back The market dive now looks like it’s coming to an end regionally By David Clifton, Faithful + Gould Dubai and KSA are leading the way to better days ahead for the Middle East construction industry. The construction industry took a hard hit in 2015 and 2016. We’ve seen over 0.33 million workers in the construction industry laid off in KSA alone, with further employment cuts across the GCC and the wider oil producing states. The market dive now looks like it’s coming to an end regionally, with international markets even showing signs of skills shortages. In the Middle East, the cyclical nature of construction is now better understood and governments must make addressing the boom and bust in the industry an agenda item to address to maintain population, drive current and potential future market revenues and ensure a sustainable environment. 2017 marks the uptick of recovery and the GCC’s re-entry to a growth environment for the industry. The worst is over. That’s not to say the next two years will be easy— far from it — but we are at last seeing some growth. Dubai and KSA stand out for growth potential, in 2018/2019. KSA can expect the effects of NTP and Vision 2030 to gain momentum – which has the Deputy Crown Prince’s commitment to government awards later this year, and the implementation of PMOs and the alterations in ownership structures will also bring huge change and progress through to 2018. Alternative financing is now starting to establish itself, primarily in the power and water industries (IWPP and IWP). We are seeing the implementation of alternative financing now, with GACA moving forward with Yanbu, Ta’if and Ha’il airports. In the UAE, progress is being made 66

Dubai and KSA are leading the market revival

2017 marks the uptick of recovery and the GCC’s reentry to a growth environment for the industry. The worst is over.” and 2017 contracting awards are now picking up, after a slow January and February. Dubai Expo 2020 appears to be on (or over) critical path and time really is of the essence to complete projects in time for the event. Combine this with slightly earlier than expected freeing of liquidity in the

// construction business news me // May 2017

global system, and capital is looking for a home and a return. This can only be viewed as positive for a market that craves investment. There are some caveats in that, whilst we are bouncing along the bottom of a UAE property price slump and a lack of GCC awards, over-ambitious towers may not see the light of day and instead be replaced by more feasible projects – or cancelled if they don’t make economic sense. In KSA we are seeing not only alternative financing gaining traction, but also a commitment from the Deputy Crown Prince that schemes will hit the market late this year. Combine that with the PMO roll-out – which has now seen the National PMO awarded and mobilised (with others to follow) – and the market has started to gain its lustre again. It’s a short window to mid/late 2017, but hold on — we won’t be back to where we were, but we are moving in the right direction, and, in typical Middle East style, now with pace.


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