Big Project ME April 2019

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157

APRIL 2019 meconstructionnews.com

THE BUSINESS OF CONSTRUCTION

retail evolution

Fuad Mansoor sharaF on how Majid al FuttaiM properties continues to evolve the shopping Mall experience in the Middle east

Contents

Issue 157 April 2019 06

14

16

18

24

34

16 Breakthrough in Real Estate

32 Taking Construction Forward

04 MEConstructionNews.com OnlIne

The biggest stories from Big Project Middle East’s home on the web

06 KSA construction rebounds

AnAlysIs

Legal experts analyse the impact of recent landmark judgements in relation to property developments in Dubai

The bIg pIcTure

RICS report says recovery due to increased infrastructure activity

TechnOlOgy

Ujjwal Goel outlines how technology can help drive construction forward

34 Making an Impact supplIer fOcus

18 Hercu Viljoen & Imad Itani In prOfIle

BMI Group plans to target the regional roofing and waterproofing market ahead of its launch

12 OFID signs $25m loan

Big Project ME finds out how ALEC is embracing innovation and turning itself into a construction company for the modern era

14 KSA 2019 construction overview

24 Transforming the Landscape 40 Perfect Position

InTernATIOnAl news

OFID signs $25 million loan with ArmPower for Armenian power plant MArkeT repOrT

ProTenders report breaks down the Kingdom’s construction landscape

36 Top Tenders Tenders

Big Project ME lists the Middle East’s biggest construction tenders for April 2019

prOjecT prOfIle

lAsT wOrd

Big Project ME visits the latest redevelopment project at City Centre Deira, valued at $103 million

Paolo Testolini examines why Dubai is well placed to realise a smart city vision April 2019 1

Introduction

Worth the risk

W

hat is innovation, exactly? While it is commonly defined as a process that translates an idea into a good or service that creates value, I would add that it is also an action that requires a significant amount of risk-taking in order to succeed. I find that most early innovators are also risk-takers who are so convinced in the power of their ideas that they are willing to gamble on trading their existing success for potential future wins.

As most of you would agree, the construction industry is not synonymous with risk-taking. For the most part, the industry prefers to cling to tried and tested methods of operation and delivery, never mind the cost in money or time of doing so.

Therefore, this month’s interview with ALEC was quite a pleasant surprise for me. Not only did I find that the contractor – one of the region’s best-known and most respected entities – is willing to take the risk to change, it is also encouraging its employees to drive that change from within.

During my conversations with Hercu Viljoen and Imad Itani, I was given an insight into the thinking of the company. Itani, as Innovation manager, is helping to develop an environment of trust and collaboration that is proving to have a major impact on production and efficiency.

For me, this is a hugely important step forward for the industry. With one of the country’s best-known contractors looking to evolve into a 21st-century company, it is only

2 April 2019

GROUP MANAGING DIRectOR RAZ ISLAM raz.islam@cpitrademedia.com +971 4 375 5471 eDItORIAL DIRectOR VIJAYA CHERIAN vijaya.cherian@cpitrademedia.com +971 4 375 5472 eDItORIAL eDItOR GAVIN DAVIDS gavin.davids@cpitrademedia.com +971 4 375 5480 JUNIOR RePORteR ANGItHA PRADEEP angitha.pradeep@cpitrademedia.com +971 4 375 5479 SUB eDItOR AELRED DOYLE aelred.doyle@cpitrademedia.com ADVeRtISING cOMMeRcIAL DIRectOR JUDE SLANN jude.slann@cpitrademedia.com +971 4 375 5714 DeSIGN ARt DIRectOR SIMON COBON

natural to assume that the rest of the construction sector will soon be following suit, once they see the improvements in action.

This trend continues in our project profile on City Centre Deira, where Majid Al Futtaim Properties is trailblazing a path for the retail sector.

As shoppers’ tastes and demands change, so must retail developers.

It is absolutely fascinating to hear from them how they’re incorporating data analysis, intelligent design and sustainability into their malls and turning a simple shopping trip into a lifestyle experience – starting with the mall that launched Dubai’s retail obsession.

simon.cobon@cpitrademedia.com DeSIGNeR PERCIVAL MANALAYSAY percival.manalaysay@cpitrademedia.com PHOtOGRAPHY MAkSYM PORIECHkIN MARKetING MARKetING MANAGeR SHEENA SAPSfORD sheena.sapsford@cpitrademedia.com +971 4 375 5498 cIRcULAtION & PRODUctION PRODUctION MANAGeR VIPIN V. VIJAY vipin.vijay@cpitrademedia.com +971 4 375 5713 DIStRIBUtION MANAGeR PHINSON MAtHEW GEORGE phinson.george@cpitrademedia.com +971 4 375 5476 WeB DeVeLOPMeNt MOHAMMAD AWAIS SADIq SIDDIqUI FOUNDeR DOMINIC DE SOUSA (1959-2015) PRINteD BY RASHID PRINtING PRESS LLC PUBLISHeD BY

Licensed by tECOM to registered company, CPI trade Publishing fZ LLC whose registered office is 207 – 209, Building 3, Dubai Studio City, Dubai, UAE

Gavin Davids editor gavin.davids@cpitrademedia.com @MecN_Gavin

www.cpitrademedia.com © Copyright 2019 CPI trade Media. All rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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CONSTRUCTION

SAUdI CONSTRUCTION ReBOUNdINg BUT TeNdeR PRICeS dOwN IN SOMe gCC MARkeTS, ReveALS RICS SURvey

Shamal Steel Arch Bridge in RAK sets new world record

Saudi Arabia may sometimes be a challenging and frequently frustrating market to operate in – from a construction

CONSULTANT

stand-point – but it has

UAE firm to sell iconic New York tower

to be good news if there are signs of a recovery

Interview: Securing the future with Aquila PM’s Louise Rodrigues

CONSULTANT

BWTC awards management contract to Savills

CONSTRUCTION

RAK announces emirate’s first ‘Green Building’

CONSTRUCTION

Eagle Hills Sharjah launches Indigo Beach Residence 4 April 2019

feature: Built to Sterling Standards

there (Saudi construction rebounding but tender prices down in some GCC markets, reveals RICS survey). Even if it has not always been the case that the region’s economies all grow at the same pace, a strong Saudi market is key to ensuring a continuity of work for the construction industry. At the very least it keeps cashflow moving. Hopefully, the warnings in the survey about payment delays are not an indication that past lessons have not been learnt. If you are suffering from skill shortages (there is a reason why some of us get paid a ‘Saudi premium’), then you want to be able to afford the expertise you need.

Name withheld by request

The Big Picture

Increased workloads Survey respondents have reported an increase in infrastructure workloads in the Kingdom, but add that operating conditions remain difficult.

RICS report: KSA construction rebounds Survey respondents say recovery is due to increased infrastructure activity

C

M

Y

CM

MY

CY

CMY

A recent report by RICS finds that the Kingdom of Saudi Arabia is witnessing a rebound in construction activity due to headline infrastructure workloads increasing, and also reports an improvement in operating conditions during the fourth quarter of 2018.

In its market analysis, RICS, a global professional body, said the increase in infrastructure workload was broad-based in the quarter, with water and utility, road, rail and energy projects all experiencing robust growth.

The RICS Middle East Construction and Infrastructure Survey is a quarterly guide to trends in the construction and infrastructure markets.

Respondents are asked to compare conditions over the last three months with the previous three months, as well as for their views on the outlook for the industry.

6 April 2019

However, the latest RICS survey results indicate that operating conditions remain difficult. Despite this, respondents also report an increase in infrastructure workloads throughout the region. Although it reports a slightly more optimistic outlook, the survey warns that the region remained vulnerable to external economic shocks.

The expectations for 2019 are somewhat mixed, with respondents seeing an increase in workloads over the next 12 months, though at a more subdued pace in the UAE, Oman and other GCC states. In addition, tender prices for both building and civil engineering are expected to decline, while profit margins remain under pressure in these countries.

Participants in the UAE reported an upturn in infrastructure workloads as

well, though at a slower pace, with energy projects seeing a particular rise in activity.

Expectations for infrastructure workloads over the next twelve months are nuanced across the region, though harbour and port projects are generally among the sub-sectors expected to see the largest increase in workloads in 2019.

New business enquiries and new workloads increased marginally in Saudi Arabia, though Q4 in the Kingdom and the Sultanate of Oman also

85%

of respondents feel financial constraints are holding back construction activity

saw an increase in payment delays. Additionally, there was a rise in the use of alternative dispute resolution (ADR) mechanisms in the Kingdom.

A major factor holding back activity across the region, as cited by 85% of respondents in each jurisdiction, was financial constraints. Contributors to the survey similarly identify competition and a lack of demand as drags.

Saudi Arabia (52%) and Oman (42%) also face skills shortages, with contributors citing this as another significant factor holding back activity; in the UAE, this is seen as a drag by a smaller share of respondents.

BIM managers remain the most in demand across the region for a second quarter, with contributors from Oman (59%), Saudi Arabia (52%), the UAE (41%) and Qatar (37%) all reporting a shortage, the report adds.

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The Big Picture

Route 2020 Project hits 70% completion RTA says 80% of rail track is done, while 50-60% of station works is finished Dubai’s Roads and Transport Authority has announced that the construction progress rate of the entire Route 2020 Project has reached 70%. The line is an extension of the Red Line of Dubai Metro to the Expo 2020 site and extends 15km from Nakheel Harbour & Tower Station (elevated track – 11.8km, underground track – 3.2km). The completion rate for the project has hit 80% on the rail track works and 50-60% for the station works.

Mattar Al Tayer, directorgeneral and chairman of the board of executive directors at RTA, revealed the details during an inspection tour of several stations including

Expo, Al Furjan and Nakheel Harbour & Tower Stations.

Expo Station is one of the project’s key stations and is the main link to the Expo site. It is a multi-level structure comprising a ground floor, mezzanine and concourse levels, along with a train platform. It will serve the Expo 2020 site and the surroundings as it extends from Expo Village and Expo Mall to the West, and to Expo Yard towards the East.

In a statement, RTA said this particular station has exceeded 50% completion rate and more than 90% of its metal structures have been installed.

30% of the electromechanical works have been completed

15km

11.8km 3.2km 80%

Total length of the extension On track Construction progress of the Route 2020 Project has reached 70%, with 80% of rail track works done and 50-60% of station works completed.

8 April 2019

Length of the elevated track

and work is up and running on the installation of the winged metal structure of the station.

Al Tayer inspected the work progress of Al Furjan Station, where external cladding works have been completed.

The contractor has finished the installation of the metal structure and roof cladding, the completion rate has almost reached 57%, and progress on electromechanical works has reached 25%. The company has started the architectural finishing works of the station’s lobby.

Al Tayer also inspected the work progress of Nakheel Harbour and Tower Station, a transfer station between Dubai

Length of the underground track

Metro Red Line and Route 2020. It has a design similar to that of existing metro stations, to maintain the identity and appearance of stations on Sheikh Zayed Road. However, the interior has been designed to handle more people than current Red Line stations do, while taking into consideration environmental sustainability concerns.

The construction completion rate of the station is over 50%, and the contractor has completed the installation of the metal structure and is working on the roof cladding. Preparations are underway for the installation of the footbridge linking the station with the parking area.

Completed rail track work

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Women in Construction Summit and its entities are a product, owned and operated by CPI Trade Media. Š 2019 CPI Trade Media. All rights reserved.

The Big Picture

Key to the national economy Water, electricity and roads projects are key to the UAE’s economy, says HH Sheikh Mohammed bin Rashid Al Maktoum.

UAE to spend $1.57bn on power and water projects in northern emirates Country has built 105 dams across the country since 1982, at a cost of $435m The UAE has announced that it is allocating $1.57bn for water and power projects in the northern emirates. The announcement was made by HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai. Sheikh Mohammed also approved a $654m project to build dams and a federal water network that will connect water resources in the northern emirates to Dubai and Abu Dhabi.

He approved plans to build a $326m solar power station in Umm Al Quwain and a water desalination station with a capacity of 150m gallons a day.

The projects are scheduled for competition in the next two years.

“Constant development efforts and mega projects are a characteristic of the UAE. As we embark on a new development journey, we are constantly exerting efforts to achieve the highest standards in every sector. Water, electricity and roads projects are key to the national economy, and we are currently investing in them to ensure the continued growth of our economy,” Sheikh Mohammed said.

Recently, Sheikh Mohammed visited the $8.4m, 541,000m3 Kalba Dam in Sharjah, which was delivered in 2017. During his visit, he was briefed on dam projects in the country and the role they play in collecting

water. He also reviewed a 150m gallon water desalination station project in Umm Al Quwain that is expected to come online in 2021.

“My field trips reflect a style of administration that I have inherited from Sheikh Zayed and Sheikh Rashid, and I will continue with them.”

Sheikh Mohammed was accompanied by Mohammad Abdullah Al Gergawi, Minister of Cabinet Affairs and the Future; Suhail Mohammad Faraj Al Mazroui, Minister of Energy and Industry; and Dr Abdullah bin Mohammed Belhaif Al Nuaimi, Minister of Infrastructure Development.

The UAE’s national strategic water security plan (2019-2036),

which aims to diversify nonconventional water sources and improve the water scarcity index by 2036, was discussed with Sheikh Mohammed.

The plan outlines the construction of storage tanks, pipelines and networks managed by the federal water and electricity authority, at a total investment of $654m. These projects are expected to be completed within two years.

Sheikh Mohammed was also briefed about future projects that form part of the national strategic water security plan aimed at saving $20.5bn. As much as $2.45bn is also expected to be saved through various water desalination projects.

“Water, electricity and roads projects are key to the national economy, and we are currently investing in them to ensure continued growth” 10 April 2019

The Big Picture

$135m

2

$135m in financing has been confirmed for Irish social housing construction programme

1. OFID sIgns $25m lOan FOr armenIan pOwer plant The OPEC Fund for International Development (OFID) has signed a loan of more than $25m with ArmPower in Armenia. The loan is to help expand and diversify power generation sources developed by the private sector in the country. ArmPower is a special purpose consortium owned by Siemens Project Ventures and Renco Power.

OFID’s financial assistance will help fund a 250MW gas-fired combined-cycle cogeneration power plant with annual production of up to 2,000GW hours, and will be Armenia’s first greenfield project financed power plant.

The project will create local employment during the construction and operation of the power plant, a WAM report said.

The report added that for the transaction, OFID partnered with the International Finance Corporation – the lead arranger of the financing package – and its syndications platform, known as the Managed Co-Lending Portfolio Programme, as well as the Asia Development Bank and German development finance institution Deutsche Investitions und Entwicklungsgesellschaft.

12 April 2019

3

$1bn

A Pentagon decision to redirect $1bn to build 57 miles of fencing along the Mexican border has been rejected by the US congress

2. mubaDala tO sell nYC’s ChrYsler buIlDIng FOr substantIal lOss The owners of New York’s Chrysler Building have reached an agreement to sell the iconic building for just over $150m, say people familiar with the matter. According to a Wall Street Journal report, the 77-storey office tower was put up for sale by its owners,

Abu Dhabi investment firm Mubadala and real estate group Tishman Speyer.

Mubadala acquired a 90% stake in the building in 2008, having paid $800m at the time of purchase, meaning the reported sale figure will entail a massive loss. Tishman Speyer, which bought the building in 1997 for a reported $210-250m, has retained a 10% stake.

After a competitive bidding process, Aby Rosen, co-founder of RFR Holding, emerged as the highest bid for the property. The bidding process saw developers such as Ashkenazy Acquisition Corp and RXR Realty participate as well. The building’s sellers were represented by Darcy Stacom and William Shanahan from real estate services firm CBRE Group, added the WSJ.

The Big Picture

176.9km Construction has started on a 176.9km highspeed railway in China’s Sichuan Province

1

4

$700m

Construction on a $700m lithium processing plant has begun, Western Australia’s government has said. It will be the largest in Australia.

3. grOupement Isarene awarDs $1bn epC COntraCt tO petrOFaC Petrofac has been awarded a $1bn contract by Groupement Isarene (GI). GI is a joint operating group comprising Sonatrach, Petroceltic and Enel, for the Ain Tsila development project in Algeria. The Ain Tsila field will produce gas, LPG

and condensate for the local Algerian market and for export.

As per the terms of the 42-month contract, the lump-sum engineering, procurement and construction (EPC) project scope of work includes commissioning, start-up and performance testing. The project is located 1,100km southeast of Algiers.

“This award builds on Petrofac’s significant track record in Algeria, where we have been operating successfully for more than 20 years, with a strong record for project execution and the development of local capability,” said E S Sathyanarayanan, group MD, Engineering & Construction at Petrofac.

4. aCwa pOwer tO Invest $3bn In egYpt’s eleCtrICItY prOjeCts In 2019 Acwa Power, a major Saudi Arabian developer of power and water desalination projects, has announced that it is set to invest $3bn in Egypt’s electricity projects this year. In a statement, the utility developer said it has collaborated with Hassam Allam Holding Company to establish a 2.3MW power plant in Luxor. The project will be built at a cost of $2.3bn, with Phase One of the operation expected to start in the summer of 2022, followed by full commercial operation in the summer of 2023.

The power purchase agreement (PPA) is under a build-own-operate (BOO) framework, Acwa Power added, pointing out that it was a 25-year term. It said the project would be vital for meeting increasing demand for electricity in Egypt over the next few years, particularly in Upper Egypt. The $3bn investment will be allocated for implementing investments in the Upper Egypt governorates of Luxor, Aswan’s Benban Solar Park and other projects, it added.

April 2019 13

Market Report

Saudi arabia 2019 ConStruCtion overview ProTenders report breaks down the Kingdom’s construction landscape

The Kingdom leads GCC construction with $1.2tn in active projects, of which over 50% are within infrastructure. The Saudi Vision 2030 continues to be a huge driver for construction.

Recent social reforms and easing of the country’s visa

restrictions have led to a focus on recreation projects and on large-scale expansion and renovation programmes for existing structures. Saudi Arabia’s commitment to diversifying away from its dependence on oil is evident from the plan to construct

16 nuclear reactors which together will cost $80bn.

Country Breakdown

• Projects worth $89.4bn have main contracts out to tender and set to be awarded, with 53% of total contract value in

infrastructure.

• Saudi Arabia has approximately 4,512 active projects with a combined estimated value of $1.204tn.

• The Kingdom has $588bn of projects in pre-construction, with 55% in planning stage.

5 High-Value Projects in the Kingdom Project name

value ($ Mn)

Status

Sector

Completion date

Al Faisaliah Smart City

5,000

Planning

Urban Buildings

Dec 2025

Ras Tanura Oil Refinery

3,000

Under Construction

Oil & Gas

Dec 2038

King Abdulaziz International Airport Expansion (Phase 2)

10,000

Planning

Infrastructure

Oct 2026

New Jeddah Downtown

4,800

Planning

Urban Buildings

Oct 2024

Energy Industrial City

4,400

In Design

Urban Buildings

Nov 2024

14 April 2019

Market Report

“The Kingdom leads GCC construction with $1.2tn in active projects, of which over 50% are within infrastructure�

Total

$511

Urban Buildings $115.6

Urban Buildings $144.9

Total

Design $111.8

Tender $115.6

Top 5 developers by value ($BN)

Total

Top 5 contractors by value ($BN)

Top 5 consultants by value ($BN)

60

15

30

40

10

20

20

5

10

Saudi Pan Kingdom

Larsen & Toubro

Saudi Bin Ladin Group

Hanwha Engineering & Construction

40

Daewoo Engineering & Construction

20

Ministry of Transport

80

Ministry of Housing

50

Saudi Electric Company

25

King Abdullah City of Atomic and Renewable Energy

100

Saudi Aramco

Infrastructure $270.8

$470

Saudi Consolidated Engineering Company

Under Construction $460.8

Oil & Gas $95.7

Zuhair Fayez Partnership

$1,120

Infrastructure $207.9

Omrania & Associates

Oil & Gas $100.9

Planning $269.5

Upcoming projects by sector ($BN)

Egis Rail

On Hold $162.7

Ongoing projects by sector ($BN)

Dar Al Handasah Consutants

Value of projects by status ($BN)

Construction contract award forecast Q2 2019 ($BN)

Source: ProTenders

Oil & Gas $3.6 Infrastructure $3.2

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

Urban Buildings $2.1

April 2019 15

Analysis

A breAkthrough for reAl estAte developers in the uAe Wael El Tounsy, head of the UAE Real Estate Litigation practice, and Tarek Saad, Dispute Resolution partner at Baker McKenzie Habib Al Mulla, analyse the impact of recent landmark judgements in relation to the sale and purchase of property developments in Dubai Real estate developers in the UAE have not always had an easy time of it, and since the 2008 global financial crisis, the UAE has taken great care to balance the competing interests of developers and buyers to keep the market buoyant.

However, several landmark judgements by the Dubai courts in the past year have set new precedents for developers – providing guidance on key issues upon which the UAE real estate laws had been silent, thereby facilitating the sale and purchase 16 April 2019

of property and reinforcing confidence in the market.

A major UAE real estate developer’s successful appeals to two cases in the Dubai Court of Cassation relating to the sale of off-plan property developments in Dubai set new precedents.

The Dubai Court of Cassation overturned the rulings of the lower courts, which had previously ruled to nullify the sale and purchase agreements (SPA) in favour of the buyers, on the basis that the off-plan properties were marketed for sale and the

agreements were signed before the project adoption date by the Dubai Land Department (DLD).

The law stipulates that a developer cannot market and sell an off-plan property in Dubai if the project is not approved by “the Competent Entities” first, and this renders any SPA executed prior to obtaining such approval null and void.

Due to the law’s ambiguity as to the competent authorities and types of approval, the Dubai courts had been accustomed to interpreting this to mean that

the project adoption date by the DLD was considered to be the required approval from a competent entity before an off-plan property was marketed for sale.

In these cases, the Dubai Court of Cassation held that the developer had adhered to the provisions of the law and considered the building permit from the Dubai Municipality in the first case, and the approval for the construction of a hotel from Dubai’s Department of Tourism & Commercial Marketing (DTCM) in the second case,

Analysis

tarek saad The UAE’s regulatory and economic landsc ape is evolving and these recen t landmark judgements reflec t this.

“These groundbreaking rulings and interpretation of the real estate laws provide specific guidance on the above for the first time and set new precedents” as requisite approvals from competent government entities.

In addition, the court confirmed that the developer had fulfilled all of its contractual obligations to the buyers, including registering the property units in the name of the buyers in the DLD’s Interim Register (Oqood) and depositing the purchase price in the projects’ escrow accounts.

These ground-breaking rulings and interpretation of the real estate laws provide specific guidance on the above for the first time and set new precedents:

developers can now promote or sell off-plan projects after obtaining an approval from a number of competent government entities (including Dubai Municipality and the DTCM), in addition to registering the property with the DLD. This will save developers time and money.

In February the Dubai Court of Appeal confirmed in yet another property case that these Dubai Court of Cassation judgments are the precedents going forward.

The obligations of main developers and sub-developers

in relation to the infrastructure required for property developments have also been addressed for the first time. In a dispute over the sale and purchase of two plots of land in downtown Jebel Ali, the Dubai Court of Cassation’s ruling in favour of a sub-developer set a precedent by confirming the liability of both main developers and sub-developers for ensuring that the infrastructure is completed for a property or land before it is advertised for sale.

The court ruled that the main developer had breached

Wael el tounsy Dubai courts are increasingly adopt ing a commercial approach in the field of real estate development, upholding the spirt of the law to achieve justic e and comm erciality.

its obligation to verify that the land for sale should be ready and equipped with the required and proper infrastructure.

This was also a breach of the requirements of contracting in good faith.

Notwithstanding a breach by the main developer, this would not relieve the sub-developers from their own obligations and liabilities towards the end buyers of the property units for not completing the works of the infrastructure – a key point that the Dubai Court of Cassation stressed in the judgement.

Ultimately, the sub-developer was allowed to invalidate the SPA with the main developer (the seller in this case) and claim a refund of the purchase price (plus interest).

The UAE’s regulatory and economic landscape is evolving, and these recent landmark judgements reflect this. The Dubai courts are increasingly adopting a commercial approach in the field of real estate development, upholding the spirit of the law to achieve justice and commerciality, rather than simply sticking to the letter of the law.

Whether you are a developer or a buyer, there is greater assurance that all contractual obligations are met and that a project is secured by protections offered by the law.

April 2019 17

In Profile

“You don’t saY that You want to change the culture tomorrow – it’s a process. and it’s the same with innovation. it’s a process of changing the mindset and it’s a journeY of modernising our industrY”

Big Project ME interviews ALEC’s Hercu Viljoen, managing director, Related Businesses, and Imad Itani, innovation manager, to learn how the contractor is embracing innovation and turning itself into a construction company for the modern era 18 April 2019

In Profile

April 2019 19

In Profile

e

arlier this year, Kez Taylor, CEO of Dubai-based contractor ALEX, was asked by Big Project ME to identify key areas of the industry that construction companies would need to focus on. While he highlighted the need for collaboration and efficiency on projects, he particularly emphasised fostering a culture of innovation within companies.

Using his own firm as an example, Taylor pointed out that a culture that promotes innovation fosters an environment where employees are constantly looking for ways to improve efficiencies and performance.

“Everything should be simplified as much as possible, and improvements should be recognised and communicated throughout the business. Innovation is key and we have seen an appetite for new technologies and innovation across our industry,” he said at the time.

The men tasked with carrying out this vision and strategy for the company are Hercu Viljoen, managing director of Related Businesses, and Imad Itani, Innovation manager. The duo sat down with Big Project ME to discuss how innovation, which can be something of a nebulous concept, is helping one of the region’s leading contractors become a construction company comfortable in operating as a 21st-century business.

“I think it was about five years ago that we recognised the need to up the intensity of innovation in our company. It became a 20 April 2019

efficient in innovation Hercu Viljoen says that ALEC worked with its young engineers to develop a strategy for how its businesses could be more efficient in innovation, which then led to the creation of a full-time role for an innovation manager.

much more important function, so we set a task for one of our Evolve groups, which are the young engineers we train, to come up with a strategy for how our businesses can be more efficient in innovation,” says Viljoen.

“So that exercise came up with a strategy, and based on that, we had three or four key action points [to build around]. One of them was having a full-time manager, and so we appointed one at the time, and after a couple of years we felt the need to increase the level and make the innovation manager a more senior person within the company, and that’s why Imad was appointed.”

As innovation manager, Itani’s role is to create short- and longterm targets for the company and its employees, while also helping translate the company’s vision and strategies into objectives and tasks that will help it achieve its goal of becoming the most innovative construction firm in the region.

“When we started two years ago, we also identified barriers

“Communication was one of the main things.

When we operate on projects, we tend to operate in silos – each project is separate and on its own, operating by itself. We wanted to find ways to collaborate more, communicate more”

that were preventing us from being where we wanted to be, and worked towards finding solutions to solve those barriers,” he relates.

“Communication was one of the main things. When we operate on projects, we tend to operate in silos – each project is separate and on its own, operating by itself. We wanted to find ways to collaborate more, communicate more. How do we reach the guys on-site, and how do they reach us? Do they feel that we’re supporting them? I come from site, and I understand what you expect on-site and how it feels to get support.

“We address communication through many means – through continuous communication, with different platforms for different people. One platform can work for some people, but another one is required for another set of people. For some people, we reached them through face-toface meetings, but for others it was through emails, phone calls and different social platforms.

We used different platforms and events to reach our people.

“Then, how do you teach people? How do you go from an idea towards implementation?

That was the other thing, implementation. We put forward a set of long- and short-term ideas and said, these are important, and we need to deliver these projects, what do we need to do to deliver them? And then we assign individuals or teams to work on them, we give them the necessary support and we keep working with them.

“The important thing is that once an idea is delivered, we give credit to the people who worked on it. What we found is that once we implement more and more ideas, people will get more and more excited about them and you get more of them on board.”

Viljoen explains that one of the biggest obstacles during

In Profile

Breaking habits One of the first challenges the Innovation team faced was to change the mindsets and habits of employees who had been used to working and operating in certain ways for many years.

this initial implementation phase was changing the mindset of employees. People within the organisation were simply not ready or willing to change and break habits they had developed over many years.

However, both he and Itani say the innovation team and ALEC senior management didn’t try to force change on their employees; rather, they focused on encouragement and positive reinforcement, believing this approach would pay dividends.

“Innovation is about taking measurable risks and human nature is to avoid risk, but with innovation sometimes you have to test, and sometimes you have to fail. We are changing ALEC’s culture by telling people that it’s fine to take small risks, and we then take bigger risks as we implement more ideas and strategies,” adds Itani.

Viljoen asserts that ALEC senior management believes this approach is critical for the future survival of the company, and he

urges the rest of the construction industry to follow suit.

“If we never act, then we are never going to survive. That’s why we’ve made innovation one of our values and that’s why we’re driving it from the top level, with people working on it full-time. Our industry is broken, the systems are broken, it’s archaic and it doesn’t function properly anymore, which is why so many projects finish late, and that’s why most of them are over budget. We believe that if

we have a very clear strategy of implementing some of this new-age, innovative thinking, we could intersect in the future and really stand out as a contractor.”

A crucial element of this shift is to move ALEC towards adopting more digital technologies and systems as part of everyday work.

Not only will this approach allow it to improve its core targets of communication and coordination, it will also allow the company to better prepare itself for a future that is rapidly becoming completely digital, Itani says.

With data analysis now a major contributing factor to success in many other industries, he is keen for ALEC to be an early adopter in the regional construction industry.

“From day one, we have been telling people that if they cannot measure it, then they cannot manage it and consequently improve it. You need to start to record all the activities that you do, and then you can start to look and make sense of what you need to improve.

“The teams tell us where there are non-efficient activities, what is not productive enough, and we

encouraging communication A key factor in the success of ALEC’s innovation strategy has been to encourage employees to be open about communicating issues and challenges they face on projects.

April 2019 21

In Profile

will look for ways to improve it.

There are lots of opportunities available with technology to track, monitor and get all of this data, and get the variety needed to analyse it, work on it and then give suggestions to our people. We have been doing a number of initiatives and we will be doing more this year, in relation to data collection, analysis and then making the right decisions,” Itani says.

This approach has resulted in a staggering increase in productivity, he says, claiming that the increased figures range from as little as 10% to as much as 400%, just through the use of new equipment, software or products, or a new set of methodologies.

“Through different initiatives, we are seeing massive improvements that can go from 10% to 400%,” says Itani.

“We are talking about 20-30% improvements just through

increased productivity Since the innovation strategy has been implemented at ALEC, the contractor has seen massive increases in productivity and efficiency across a range of divisions.

our understanding. We select bottleneck projects and check what are the things that can be done to improve efficiency on a job. We work specifically on those bottlenecks and try and improve them and maximise efficiency.

“A typical example of how data can help us is by looking

at vertical transportation on a project. That is a big bottleneck for any contractor. Imad and his team measure all the data – stoppage times, waiting times, movement times and all that.

Just by analysing the data, we can then implement an efficiency strategy,” Viljoen says.

“We become lazy to see them [the bottlenecks] – they stare us in the face every day, but if we train our people to look with their eyes open, then those bottlenecks become apparent to us. People can come to us and say that there’s something on-site that’s happening which shouldn’t

“Once people start to talk more about efficiencies, then they’re starting to talk the language that we want them to talk” training to see bottlenecks Employees are being trained to recognise bottlenecks that they encounter on projects and are encouraged to communicate those issues to management.

22 April 2019

In Profile

be happening. The more we try and train our people and have them come up with suggestions, the more these bottlenecks will be identified [and resolved].”

Encouraging employees to talk is a major part of the Innovation team’s remit, and because the construction industry is generally quite tightlipped, Itani says creating that atmosphere of trust and openness is a crucial aspect of his job.

“In our industry, people don’t normally talk, but now they’re starting to talk more and they’re saying, ‘Listen, this is a problem.’

Before, people used to say, ‘This is a problem, let me hide it.’ Now, we want people to talk about the problems because then maybe we can fix them – and in most of the cases, we can. They can even fix the problems themselves, but they do need to talk about them.

“We are telling people to challenge why they should accept these problems, and then all these problems start to surface when they begin to challenge [these issues]. This is where their colleagues – maybe a guy on a similar project, for example – can give them advice because of something he’s tried before that’s worked. We want to connect people together to find solutions as a team.”

This willingness to share information and knowledge comes right from the top, Viljoen asserts, pointing out that company leadership consistently goes for training, with the emphasis on alignment and training.

“Alignment is the art of business. How do we align?

How do we work together and how do we collaborate?

“That’s the first thing, that the message from the top is consistent – that we work together as part of our culture.

That’s why we talk about culture [playing a major role].

creating trust Imad Itani says that creating an atmosphere of trust has been a crucial aspect of his role as innovation manager for ALEC.

“Then we have the forms of communication – we opened up an internal social media, as well as on-site forums, where people could communicate more openly.

It’s very important too that people realise that no one is going to get fired for highlighting a problem – actually they might be rewarded for it! That attitude changes the mindset as well,” he adds.

Concluding the interview, Itani expands on the need for regular communication and its importance to ALEC. As people become more and more aware of the importance of ideas and of sharing those ideas, he believes the company will continue to see added value and growth, not just for itself but for the industry as a whole.

“Once people start to talk more about efficiencies, then they’re starting to talk the language that we want them to talk. This is what is important – that the word ‘innovation’ is repeated many times and that the message [permeates

“Innovation is about taking measurable risks and human nature is to avoid risk, but with innovation sometimes you have to test, and sometimes you have to fail. We are changing ALEC’s culture by telling people that it’s fine to take small risks”

throughout the company]. We can start to see that as the years go by, the number of initiatives are increasing, that successful innovation is happening and that the company is growing. There is definitely a lot of added value to the company and to the industry.”

While he is aware that this isn’t a change that is going to happen overnight, Viljoen insists that the time has come for the construction industry to make a change in how it operates, and that it is crucial that ALEC be at the forefront of this change.

“Is the industry ready for the change? No, I don’t think so, but our company is. We are changing our mindset.

“Construction hasn’t changed for 50 or 60 years, but now the younger generation is coming in and is ready for that change. Look at the [modern-day] construction site with its boom cranes, concrete pumps, slabs, etc. It will change.

“His Highness Sheikh Mohammed Bin Rashid Al Maktoum set the goal of having 25% of Dubai’s buildings being 3D-printed by 2030, and all of us thought then that it was an impossible task. Now we’re thinking that it’s very possible, if we just apply our minds.

“You don’t say that you want to change the culture tomorrow – it’s a process. And it’s the same with innovation.

It’s a process of changing the mindset and it’s a journey. It’s a journey of modernising our industry, and I think that it will take a decade maybe, but this year we’re doing something.

Next year it’ll be a little bit more, and then a little more the year after that,” he explains.

“It’s coming. The next five years are going to be extremely exciting, because our industry is going to transform itself,” Viljoen predicts with complete certainty.

March April 2019 23

Project Profile

TRANSFORMING

Big Project ME talks to Fuad Mansoor Sharaf, managing director of Majid Al Futtaim Properties, Shopping Malls (UAE,Bahrain and Oman), about the latest redevelopment project at City Centre Deira and how the developer is preparing for the future 24 April 2019

Project Profile

THE LANDSCAPE

April 2019 25

Project Profile

D

ubai’s retail industry has evolved over the last year, emerging as the number one market for international retailer presence.

According to CBRE, Dubai has the most global brands within its borders of the 122 cities examined.

Furthermore, Euromonitor International says retail sales in Kuwait, Oman, Saudi Arabia and the UAE are expected to increase by more than $24bn over the next five years, with the UAE leading the trend with estimated growth

of 16%. The UAE retail industry is presently valued at $55bn, forecast to reach $63.8bn by 2023, the research adds.

The report also says that non-store selling – online shopping, direct selling, mobile internet, social media and home shopping – will grow by 78% from 2018 to 2023. However, store-based retail will continue to dominate in the UAE, accounting for $52.7bn of the market.

As a major player contributing to this market, Majid Al Futtaim has seen its fair share of highs and lows. January saw the retail and leisure entity report an 8% growth in revenue, valued at $9.42bn, and a 9% increase in earnings at $1.25bn for 2018.

A month later, Majid Al Futtaim announced the tenth

StAtS: Name of project: City Centre Deira Redevelopment Project Project value: $103 million Project completion: H1 2020 Number of new stores: 25 Number of new F&B outlets: 20

redevelopment of one of its flagship malls, City Centre Deira. Despite the mall being 23 years old and Majid Al Futtaim operating more than 24 shopping malls in 15 international markets, City Centre Deira is ranked as one of the most successful shopping malls in the world with an average footfall in excess of 22m annually.

The mall recently underwent a redevelopment project which saw the expansion of VOX Cinemas in 2016 and the opening of the Aloft Hotel in 2018. The new project, worth $103m, will begin immediately and will be completed by the first half of 2020, with the mall staying open throughout the redevelopment.

“City Centre Deira has continued to evolve since its

Expansion plans City Centre Deira has undergone a series of redevelopments, with the expansion of VOX Cinemas in 2016 and the opening of the Aloft Hotel in 2018. The new project is expected to be completed by H1 2020.

“Developers and retailers have a mutual interest and responsibility to work together in delivering on consumers’ needs. This entails staying ahead of trends and new product launches, as well as providing innovative in-store experiences and excellent customer service” 26 April 2019

Project Profile

Memorable experiences Retail spaces are changing and becoming one-stop destinations where people can make memorable experiences, says Fuad Mansoor Sharaf.

opening in 1995, and the 2020 transformation is the next step in that journey. As the retail market continues to evolve in the region, it’s apparent that the brick and mortar stores are here to stay and the retail apocalypse is no longer imminent. But retail spaces are changing and becoming onestop destinations where people make memorable experiences with family and friends,” says Fuad Mansoor Sharaf, managing director for Majid Al Futtaim Properties, Shopping Malls (UAE, Bahrain & Oman), during an interview with Big Project ME. As part of the redevelopment, City Centre Deira will introduce 25 new homeware and 20 new F&B concepts, which will include homegrown restaurants, live cooking stations and deli counters.

The redevelopment also includes introducing escalators and enhancing traffic flow, as well as improving shopping experience by optimising retail space.

“Our latest redevelopment is more than $100m and will focus around three main areas – the primary being the food hall – where customers will have a more collaborative and interactive space. But at the same time, our traditional food court will remain because we have customers for that as well. They are who I like to call practical people who come, eat and leave.

“On top of that, we are also introducing vertical transportation in the centre court and east court to improve mobility and travel flow. This allows us to create key nodes for circulation and to focus our traffic flow into key courts, from west to east.

“Our third area of focus is re-merchandising. With this redevelopment, City Centre Deira is planning to introduce new big-box homeware and lifestyle brands which will enhance our customers’ shopping experience.

At the same time, we will also be optimising retail space and

relocating certain brands for easier access, as well as introducing new anchor stores. This will impact about 30% of the mall.

“City Centre Deira’s transformation project is a result of our customers’ changing habits and preferences. We want to develop a communal space that extends a feel-good factor with tailored, convenient and multisensory experiences.”

These redevelopments are in line with the current market trend, as a large portion of Gulf consumers are young and are frequent travellers. They conduct

their own research and have an updated frame of reference when it comes to product innovation, new trends and price points, says Sharaf, pointing out that the GCC has one of the most sophisticated groups of consumers in the world.

“Knowing that, developers and retailers have a mutual interest and responsibility to work together in delivering on consumers’ needs. This entails staying ahead of trends and new product launches, as well as providing innovative in-store experiences and excellent customer service.

“By leveraging data intelligence and predictive analytics to feed into retailers, developers can add substantial value in this realm. In turn, retailers can share information about customer purchasing patterns and preferences with developers to help enhance the offering.

“For instance, when a brand releases limited-edition items or a capsule collection, developers and retailers can collaborate to make the relevant products readily available.

Food in focus The food hall will be the focus of the redevelopment of City Centre Deira, and will feature homegrown restaurants, live cooking stations and deli counters.

April 2019 27

Project Profile

“I think the interesting part is we have been committed to this market for the last 24 years – and let me tell you something, we are pioneers here. While we like to learn from our experiences, we are like an institute when it comes to building shopping malls in this region and people are learning from us as well. It’s happening on both sides,” he asserts.

BMI Research says the Middle East e-commerce market is expected to grow from $26.9bn in 2018 to $48.6bn in the next three and a half years.

Talking about online retail gaining momentum, Sharaf says he sees these challenges as opportunities for improvement.

With the region seeing rapid e-commerce growth, the developer is closely investigating several opportunities. One way is to use online channels to either complement and enhance the experiences delivered by physical offerings or to introduce entirely new offerings, he says.

“Honestly, I don’t see it [online shopping] as competition, I see it as complementing retail. We

Adding to the experience The developer is examining several opportunities and avenues to add to the experience of visiting its shopping malls.

““City Centre Deira’s transformation project is a result of our customers’ changing habits and preferences”

Cinema with the stars The Aloft Hotel at City Centre Deira also contains an outdoor cinema operated by VOX Cinemas, giving guests an open-air movie experience.

28 April 2019

Drivin g footf all Fuad Mansoor Sharaf says brands should use the offline space to create more oppor tunities for shoppers to connect with their products.

are proof of that – we still have our customers and we still receive our sales. Maybe there is a slight shift, but when it comes to entertainment and electronics, we have maintained our significance. At the same time, when it comes to fashion, we are doing very well!

“Change is happening.

Experiential initiatives are taking centre stage when it comes to shopping malls these days. As competition from online retailers strengthens, we should be improving our customer retail experience to drive more footfall. Brands should utilise the offline space to create more opportunities for shoppers to connect with their products.

“Additionally, developers looking to grow and lead in this fast-paced space must stay ahead of the curve by employing data intelligence, planning for change and adopting a partnership approach with retailers and brands,” Sharaf emphasises.

Returning to the City Centre Deira upgrade, he is eager to point out that the food hall concept that is part of the redevelopment is being introduced for the first time in Majid Al Futtaim malls.

“We have millennials and families increasingly seeking trendy and multi-sensory dining experiences and food

Project Profile

“Since we have announced our sustainability programme, we have been committed and have built and developed our shopping malls and any enhancements with the sustainability quotient in mind. So this is a given feature for us now – anything we build, we build in that sense” theatre, which made us design an open space where children and youngsters can play freely and adults can enjoy a rich variety of street food and artisan cuisine through live cooking, socialising and engagement.”

The developer is not only focusing on redevelopments.

Majid Al Futtaim is set to open its latest community mall at Masdar City in the second quarter of 2019.

The $81m mall, its first in the UAE capital, has already created 1,500 new employment

opportunities in its buildout phase and is looking at creating more than 2,000 new jobs after opening.

With more than 70 stores across 18,500sqm of gross leasable area, My City Centre Masdar is also focusing on becoming one of the UAE’s most sustainable malls. It is looking at achieving Abu Dhabi’s Estidama Three Pearl rating, equivalent to the LEED Gold rating for exceptional performance in energy and water conservation, he adds.

“In the last few years, since we have announced our sustainability programme, we have been committed and have built and developed our shopping malls and any enhancements with the sustainability quotient in mind. So this is a given feature for us now – anything we build, we build in that sense. As with anything, we have to focus on the journey ahead. When we realised that everything is becoming more experience-based, we changed our focus to concentrate more

on the service side and customer journey. Consumers still want to leave their homes and connect with brands, provided they have worthwhile experiences with them. Experience-driven shopping malls are the way forward. When we get an opportunity, we look into it and we make sure that we are in the right place in the right time. Building and developing shopping malls is in our DNA and we will continue doing that,” concludes Sharaf.

Sustainability at the core Majid Al Futtaim Properties has made sustainability a core aspect of its expansion strategy, with all of its new shopping malls and upcoming enhancements planned with the environment in mind.

April 2019 29

Comment

Ujjwal Goel

Taking ConsTruCTion Forward Ujjwal Goel, managing director, Teraciel Group, outlines how technology can help drive construction forward While technology hasn’t always been as much of a focus for construction as for other industries, what it has made way for is cost reduction through the introduction of new materials and processes, allowing greater value engineering and deeming projects far more economical, especially in the face of potential economic downturn. Because human intervention still plays a key role in operational strategy for construction companies, reliance on technology has not been as imperative as we might observe in other sectors, and the advancements we have seen in construction have been comparatively gradual.

Yet as with all growth, continual technological 32 April 2019

developments in other sectors filter down for adaptation within the construction sector, allowing the development of more efficient processes that best serve the industry’s needs.

An example of such technology is contour crafting, a 3D printing concept that has been expanded into construction and has paved the way for better efficiencies in the development of low-cost housing. Software developments have also been instrumental to ongoing success, moving away from drafting by hand to the use of AutoCAD, and more recently building information modelling (BIM), making processes cheaper, faster and higher quality in terms of construction.

a cautious approach Goel recommends that construction companies carefully select which technologies they implement, based on specific desired outcomes and relative risks

The Middle East itself is a region greatly leveraging technological advancements in the construction industry and over the past two decades has set the scene for possibly some of the world’s greatest construction stories. From erecting the world’s tallest building to some of the largest and most complex infrastructural airports, museums and shopping mall designs, the region has continued to push the boundaries of construction.

Such feats have inadvertently led to related technological advancements geared towards engineering marvels and project management for complex structures and programmes.

So how can construction companies around the world

adopt the technologies they need to increase productivity, in much the same way renowned Dubai-based companies have done? And how can the industry, which has a reputation for being slow to adopt new technology, attract tech-savvy workers and train the ones they do have? The answer lies beyond robotics and automated building processes.

I recommend a cautious approach for companies wary of adopting new technologies.

Carefully select which technologies to implement based on specific desired outcomes and relative risks for adoption and use. Depending on the size of the organisation, consider using pilot programmes to observe how the technology

Comment

“Technology is not guaranteed to make the future easier. The resolution of longstanding industry issues – from payment delays to skills shortages – will take more than a piece of software.

But it is undeniable that digitisation provides a clear path to much-needed construction resource optimisation and greener solutions”

is used and how to design the appropriate training. Implement a process for technology acquisition and develop well thought-through training based on specific internal processes.

I believe construction is shedding its slow adopter image, and the next generation of contractors will be on the leading edge of innovation.

They will have to be forward thinkers to transform their work and companies, driving more productivity and faster projects with less risk and stronger profit margins. They’re going to push the businesses they work for to give them the tools they need to dig deeper into their data and see results in real time, so that they can operate

smarter projects today and do a better job of forecasting and planning for future ones.

Cutting-edge technologies such as BIM implementation and LEED design are just a couple of applications used within key projects. The focus is to integrate operations through a robust and comprehensive ERP system, in order to manage the supply chain and project overall. These robust platforms integrate all aspects of construction across the project lifecycle, allowing companies to coordinate at a much greater level, reducing conflicts in terms of design as well as potential delays, while shortening project completion and improving overall quality.

In addition, green building

technology has become one of the hottest trends in construction and no longer a new concept to land on the agenda. As a depth of research has confirmed, the benefits of a green technology application in construction are far-reaching and comprehensive, offering significant advantages when used in new facilities as well as existing structures.

Green technology makes buildings more energy-efficient and sustainable, so they have a lower carbon footprint and a reduced impact on the environment. Builders, building owners and tenants all realise considerable benefits from the application of green construction technology. In new buildings, green building construction

plays a role in every phase of development. Every aspect of the structure, including siting, design, construction materials and the systems used to run and maintain operations, is chosen to be as sustainable and energy-efficient as possible.

Technology is not guaranteed to make the future easier. The resolution of long-standing industry issues – from payment delays to skills shortages – will take more than a piece of software. But it is undeniable that digitisation provides a clear path to much-needed construction resource optimisation and greener solutions. Business leaders must accept and embrace technology to stride forward in tomorrow’s market.

April 2019 33

Supplier Focus

Making an iMpact

Big Project ME finds out how BMI Group Middle East will be targeting the regional roofing and waterproofing market ahead of its launch in the region next month Back in 2017, Standard Industries Inc, a leading global provider of roofing and waterproofing solutions, and Brass Monier Building Group SA announced that the former company had acquired the latter, combining Brass Monier’s operations with Standard Industries’ European flat roofing business, Icopal.

This merger created the largest manufacturer in the European roofing industry, with a product portfolio of both pitched and flat roof technologies. Operating under the name BMI Group, the new entity established its headquarters in London and has gone on to provide customers with a full portfolio of roofing and waterproofing solutions for both the pitched and flat roof markets.

With customers benefiting from a combination of strong brands and an extensive sales, service and marketing platform from BMI Group, the company is well positioned to meet customers’ increasingly complex technology and logistic needs.

These capabilities are backed up

34 April 2019

by its extensive investments in infrastructure and research and development, specifically designed to meet customer needs.

In the wake of several major event and vision announcements in recent years, the GCC construction sector continues to thrive, with a recent Ventures ONSITE report finding that the regional construction sector is expected to see $140bn of new contractor awards in 2019.

This is a 12% year-onyear rise in the value of new contractor awards, powered by increasing oil prices and government spending. Total GCC construction project value across the three key sectors of the construction market – building, infrastructure and energy – is estimated to currently be $3.6tn.

Buildings – residential, commercial, mixed-use, airports, sports facilities, hotels, healthcare, education facilities and industrial projects – will be the largest contributor to the construction sector in 2019, the report added.

Fast- growing region Mohammad Odat says that BMI Group considers the Middle East to be one of the fastes t-growing regions around the world.

“We are focusing our efforts in the construction market on either new or renovation projects”

New contract awards in this sector are expected to be $69.7bn, with energy and infrastructure following with $48.5bn and $22.3bn respectively.

These figures are why BMI Group has now decided to enter the region, establishing a new headquarters in Abu Dhabi that it hopes will allow it to grab a slice of GCC construction activity.

Ahead of the company’s launch event on April 10 at the FIVE Hotel on the Palm Jumeriah, Dubai, Big Project ME spoke to Mohammad Odat, regional director – Middle East, about the vision for BMI ME. Why has BMI Group come to the Middle East? What strategic opportunities are there in the current market?

The Middle East is considered one of the most active regions on the BMI Group map, as it is one of the fastest-growing regions around the world. We see several opportunities in the market, especially with all the unique projects and new

Supplier Focus

governmental innovations in terms of sustainable development.

What is BMI Group’s strategy and vision for its operations in the Middle East? How does it intend to achieve them?

As part of the global BMI group, BMI Middle East will help build communities by providing shelter, protection and peace of mind through effective and innovative roofing and

waterproofing solutions. The BMI ME team will be working closely with our customers based on our values of Empower, Inspire, Evolve and Connect.

projects. We will be working with local authorities, architects, engineers and contractors to introduce the latest technologies in roofing and waterproofing.

systems are compatible with the latest construction and building requirements. On top of this, we also provide technical support throughout a project’s lifecycle.

What market sectors will BMI Group be targeting?

How does BMI Group stand out from the competition? What are the benefits to customers of choosing it?

Finally, what are the targets and ambitions for BMI Group in 2019?

Being the largest roofing and waterproofing manufacturers in the world, we are focusing our efforts in the construction market on either new or renovation

With more than 135 years of experience and state-of-the-art research and development centres, we make sure that all of our

BMI Group will continue the ambitious growth in new regions, through the introduction of the latest technologies in roofing and waterproofing.

We add value to the communities under our management and believe that care, attention, and commitment is what makes our community lively.

Our services: Community Management | Owners Association Management | Property Management Service Charge Budgeting & Collection | Financial Asset Management and Reporting | Handover and Warranty Management Performance Management | Online Payment Platforms for Residents and Owners | Community Events Management

Driving Asset Management Forward

April 2019 35

Tenders

Top tenders SeaWorld Theme Park ProjecT – YaS ISland Budget $825,000,000 Project number MPP2586-U Territory United Arab Emirates client Miral Asset Management LLC (Abu Dhabi) city Abu Dhabi Postal/Zip code 147774 Phone (+971-2) 406 8888 email info@miral.ae Website www.miral.ae description Development of a marine life theme park Period 2021 Status Current Project main consultant AECOM Middle East (Abu Dhabi) Project manager Louis Berger Group Inc (Abu Dhabi) main contractor Al Jaber Engineering

36 April 2019

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exPo GolF vIllaS ProjecT – emaar SouTh Budget $200,000,000 Project number WPR4113-U Territory United Arab Emirates client Emaar Properties PJSC (Dubai) address Emaar Business Park, Bldg No. 3, Near Interchange No. 5, Shaikh Zayed Road city Dubai Postal/Zip code 9440 Phone (+971-4) 367 3333 Fax (+971-4) 367 3000

email customercare@emaar.ae Website www.emaar.com description Construction of threeand four-bedroom premium villas Period 2021 Status New Tender main consultant Khatib & Alami Consolidated Engineering Company (Dubai) meP consultant Khatib & Alami Consolidated Engineering Company (Dubai) Tender categories Construction & Contracting Tender Products Villas Construction

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Phone (+971-4) 332 1000 Fax (+971-4) 331 8299 / 331 2713 email info@dwtc.com Website www.dwtc.com description Construction of an exhibition pavilion Period 2020 Status Current Project main consultant Dar Al Handasah (Shair & Partners) – Dubai Feasibility Study consultant WME – Whitby & Mohajer Engineering Consultants (Dubai) main contractor Al Jaber Engineering & Contracting – ALEC (Dubai) Tender categories Construction & Contracting Tender Products Commercial Buildings, Public Buildings

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Tenders

Middle East tenders UAE noBleS reSIdenTIal ToWer ProjecT – BuSIneSS BaY Budget $50,000,000 Project number WPR4101-U Territory United Arab Emirates client Tiger Properties (Dubai) address Marina Pinnacle Tower, 28th Floor, Dubai Marina city Dubai Postal/Zip code 15620 Phone (+971-4) 428 1444 / 800 84437 Fax (+971-4) 428 1441 email info@tigergroup.net Website www.tigergroup.net description Construction of a residential tower comprising 2 basements, a ground floor, 5 podiums, 44 floors, 2 mechanical floors and roof floor Period 2020 Status Current Project main consultant Lacasa Architects & Engineering Consultants (Dubai) main contractor Tiger Contracting Company (Dubai) meP contractor Tiger Contracting Company LLC (Sharjah) Tender categories Prestige Buildings Tender Products High-rise Towers, Residential Buildings

SocIo reSIdenTIal BuIldInGS ProjecT – duBaI hIllS eSTaTe Budget $30,000,000 Project number WPR4122-U Territory United Arab Emirates

38 April 2019

client Meraas Development (Dubai) address Emaar Square, Bldg 1, Level 3 & 5 city Dubai Postal/Zip code 123311 Phone (+971-4) 511 4900 / 378 8899 / (+971-800) 637227 Fax (+971-4) 332 2707 email customerservice@meraas.ae Website www.meraas.com description Construction of two residential buildings each comprising a basement level, a ground floor and 13 additional floors Period Dec 2020 Status Current Project design consultant Rice Perry Ellis (Dubai) main contractor Dubco Construction LLC (Dubai) Tender categories Construction & Contracting

Tender Products Residential Buildings

STudIo 101 reSIdenTIal BuIldInG ProjecT – STudIo cITY Budget $25,000,000 Project number WPR930-U Territory United Arab Emirates client Meilenstein Developments (Dubai) address 2501-05, Prime Tower, Business Bay city Dubai Postal/Zip code 72253 Phone (+971-4) 565 6014 email: info@ meilensteindevelopments.com Website www. meilensteindevelopments.com description Construction of a

residential building comprising a basement, ground floor and 8 floors Period 2020 Status Current Project main consultant Mimar Emirates Engineering Consultants (Dubai) meP consultant Mimar Emirates Engineering Consultants (Dubai) main contractor Progress Constructions LLC (Dubai) Tender categories Construction & Contracting Tender Products Residential Buildings

Oman chedI hoTel ProjecT – raS al hadd Budget $35,000,000 Project number WPR4123-O

Tenders

Territory Oman client Qatari Diar Ras Al Hadd Development Company (Oman) address Mosaic Tower Building, B- Block, 1st Floor, Al-Khuwair city Muscat PC 111 Postal/Zip code 3638 Phone (+968) 2230 0700 Fax (+968) 2230 0701 email info@qdrhoman.com Website www.qdrhoman.com description Construction of a five-star hotel Period Dec 2020 Status Current Project Interior design consultant Perkins & Will (Dubai) Tender categories Hotels Tender Products Hotel Construction

orchId al maWaleh ProjecT Project number WPR1994-O Territory Oman client Private Investor (Oman) city Muscat description Construction of commercial as well as residential units for Omanis Period 2021 Status New Tender Tender categories Construction & Contracting Tender Products Commercial Buildings, Residential Buildings

Postal/Zip code 34888 Phone (+971-2) 495 8888 / 497 9999 Fax (+971-2) 633 8886 email info@eaglehills.com Website www.eaglehills.com description Construction of a beach resort Period 2021 Status New Tender design consultant SSH International Consultants (Oman) Tender categories Hotels, Construction & Contracting Tender Products Hotel Construction

Bahrain

Postal/Zip code 2194 country Bahrain Phone (+973) 1751 8667 Fax (+973) 1713 1074 email info@manara.bh Website www.manara.bh description Construction of residential villas with related facilities Period 2020 Status Current Project main contractor Insha Contracting Tender categories Construction & Contracting Tender Products Villas Construction

Jordan

WadI al rIFFa aFFordaBle homeS ProjecT

aBdalI vIeWS (The edGe) reSIdenTIal ToWer ProjecT

Budget $47,000,000 Project number WPR2233-B Territory Bahrain client Manara Developments Company BSC (Bahrain) address BWTC, 23rd Floor, East Tower city Manama

Budget $50,000,000 Project number WPR4111-J Territory Jordan client Sino Gulf Real Estate Investments LLC (Abu Dhabi) address Level 19, International Tower, Abu Dhabi

Postal/Zip code 46311 Phone (+971-2) 495 5000 Fax (+971-2) 495 5100 email info@sinogulf.com Website www.sinogulf.com description Construction of a highrise residential tower comprising 30 floors offering 230 apartments Period 2021 Status Current Project main consultant Consolidated Consultants (Jordan) design consultant Consolidated Consultants (Jordan) Specialist consultant Socotec (Lebanon) Project manager Consolidated Consultants (Jordan) Quantity Surveyor Nabih Elias Azzam & Partners (NEA) – Jordan Site Supervision consultant Consolidated Consultants (Jordan) main contractor Arab Towers Contracting Company (Jordan) Tender categories Prestige Buildings Tender Products High-rise Towers, Residential Buildings

ShaTTI Beach reSorT ProjecT – ShaTTI al Qurum Budget $40,000,000 Project number WPR4091-O Territory Oman client Eagle Hills (Abu Dhabi) address 11th Floor, Capital Gate, Abu Dhabi

April 2019 39

Last Word

Perfect Position

Woods Bagot’s Paolo Testolini on why Dubai is well placed to realise a smart city vision

Dubai is a city that has become synonymous with breaking new ground and doing things other cities in the world could only dream of. Its massive expansion over the past thirty years is testament to that.

For many years we’ve heard about the benefits a smart and polycentric city concept could deliver.

Dubai is poised to realise this. With strong, creative leadership, Dubai has the ingredients to lead the transformation to a city that embraces fully the smart city vision, with flying taxis, hover cycles, hyperloop initiatives.

Dubai has already started this transformation, with its innovative and entrepreneurial spirit encouraging and setting the scene for the realisation of a smart city

that currently seems the stuff of science fiction.

In many ways, Dubai is ahead. Its resilient nature is based on the harsh natural environment that surrounds it. The city has forged ahead, creating and envisioning the thriving futuristic metropolis.

The impact of a fully realised smart city concept would be a revolution, changing the way we think about our environment and plan our communities.

As we move into the future, polycentric cities will create compact developments that are more efficient to run; energy, food and water supply will be crucial for the success of any city, and the smart city agenda will help optimise resources and the overall running of the city.

The challenge remains as to how this is fully

realised. Such a change could rely on one single catalyst to thrust the idea into a full-blown smart city revolution, with one significant development opening the floodgates to our cities of the future.

If not a single piece of technology that ushers in an era of change, it could well be a set of circumstances and an environment created to encourage change.

This is where Dubai has a huge advantage over other parts of the world.

It has been willing to act quickly and embrace future ideas, which is one of the reasons the emirate has become such a hotbed for tourism. The challenge now is to capitalise on these conditions and propose the best way forward.

Woods Bagot has influenced the growth

of Dubai with major placemaking projects like the Design District master plan and City Walk.

Gathering significant data from global cities forms a key part of our approach. Our dedicated SuperSpace team explores the dynamic relationship between space and people, using AI, spatial understanding and analysis to create a human-centric design methodology.

SuperSpace enables the design team to take informative decisions by linking the data of global cities to predict human behaviour and mitigate the challenges of technology versus placemaking. The team worked on the Dubai Design District master plan though the approach of profiling the end user. This helped shape the design to fulfil spatial expectations

at the human scale, the core ethos of our approach.

The design intent of the Al Jada master plan in Sharjah was to merge land use to create a mixed-use development underpinned by the Live, Work and Play approach.

Our methodology incorporates the idea that if the walking catchment nodes are placed correctly, the rest will flow – land use, density, transport, etc. As we move into the future, these will become more important to create compact cities that are efficient, sustainable and healthy.

Our approach supports fresh thinking and innovation, and puts people and how we use space at the centre of the design process, creating spaces and cities of the future.

“Energy, food and water supply will be crucial for the success of any city, and the smart city agenda will help optimise resources”

40 April 2019

6 ll B Ha in us sit Vi

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