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September 2019

MEConstructionNews.com

THE BUSINESS OF CONSTRUCTION

A Nation’s Destination

BIG PROJECT ME LEARNS HOW THE MALL OF OMAN IS SET TO TRANSFORM THE SULTANATE’S RETAIL LANDSCAPE


EXPECT MORE We have ethos born from a desire to do more, to not just build for function, but to capture aesthetics and design

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www.asgcgroup.com

@ASGC


1

CONTENTS

September 2019

08

16

20

24

32

52

ANALYSIS

FEATURES

INSIGHT

08

24

40

Show Preview

42

Comments

49

Tenders

52

Progress report

The briefing

Industry experts from the power sector and built environment talk about the new developments in their respective sectors

12

The big picture

Providing a wrap-up of the biggest local, regional and international construction news stories

16

Market report

20

News analysis

ProTenders report finds that Kuwait’s real estate and construction sector is shifting towards increased private participation

Cécile Texier from Alstom analyses how rail will become the Middle East’s sustainable mode of transportation in the future

In profile Giuseppe Chiaranda

Big Project ME speaks to Giuseppe Chiaranda, director of Rimond Group, to discuss the impact Expo 2020 Dubai will have on the country and his wider ambitions for the region

32

Site visit Retail Vision

Big Project ME profiles Majid Al Futtaim Properties’ Mall Of Oman, which will become the sultanate’s largest retail destination and a key part of its economic vision once it launches in 2021

Big Project ME previews the upcoming Cityscape Global 2019, which focuses on real estate and development transformation

The industry’s brightest minds share their thoughts on a variety of topics and issues impacting the construction industry

Big Project ME, in association with ProTenders, provides the biggest tenders for the month of September 2019

Property developer Deyaar’s Midtown development nears completion with two districts ready for handover later this year

MEConstructionNews.com | September 2019


2

WELCOME

Introduction

Chasing retail ambitions

T

he Sultanate of Oman has long been a source of fascination for me, especially having grown up in the UAE. Despite being a neighbouring country, its culture and dynamics seemed to be completely different to the rest of the region, with the sultanate seemingly content to move at its own pace and exist on its own terms, in stark contrast to the hyper-inflated growth around it. However, in recent years that impression has begun to be shaken off, with the country launching a wave of projects that seem certain to put it on the map, in more ways than one. Having begun with a raft of hospitality and tourism projects, ranging from high-end luxury through to resort-style living, the country is now turning its investment plans towards reshaping its retail landscape, keeping in mind its burgeoning youth population that demands offerings comparable to what they see in the rest of the region.

September 2019 | MEConstructionNews.com

Thus, the launch of Majid Al Futtaim Properties’ Mall of Oman is perfectly timed to capitalise on the growing appetite for retail destinations in the sultanate. Easily the biggest development of its type in Oman, the mall is set to transform the country’s social and economic landscape, offering a range of attractions and facilities that will allow it to stand out against the very best malls in the region, if not the world, once it opens in March 2021. Given the plethora of retail offerings cropping up across the region, this month’s upcoming Retail and Hospitality Construction Summit promises to be the place to be if you want to learn how retail and hospitality developers and builders are using the latest technologies and methodologies to create offerings that allow them to stand out in an increasingly competitive market. Do join us for an informative day of debate and discussion on September 30 at the Oberoi Hotel in Dubai.

Gavin Davids

GROUP EDITOR gavin.davids@cpitrademedia.com @MECN_Gavin MEConstructionNews me-construction-news


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September 2019

MEConstructionNews.com

THE BUSINESS OF CONSTRUCTION

Group MANAGING DIRECTOR Raz Islam raz.islam@cpitrademedia.com EDITORIAL DIRECTOR Vijaya Cherian vijaya.cherian@cpitrademedia.com

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A Nation’s Destination

BIG PROJECT ME LEARNS HOW THE MALL OF OMAN IS SET TO TRANSFORM THE SULTANATE’S RETAIL LANDSCAPE ON THE COVER

Big Project ME talks to Majid Al Futtaim Properties about the development of the Mall of Oman and its impact on the sultanate’s economic vision

Advertising COMMERCIAL DIRECTOR Jude Slann jude.slann@cpitrademedia.com +971 4 375 5714 HEAD OF KEY PROJECTS Andy Pitois andy.pitois@cpitrademedia.com +44 7816 843610

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Photography PHOTOGRAPHER Maksym Poriechkin maksym.poriechkin@cpitrademedia.com

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The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication. The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority to CPI Trade Publishing FZ LLC. Printed by Al Salam Printing Press LLC. CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2019. All rights reserved.

September 2019 | MEConstructionNews.com

Web Development WEB DEVELOPER Mohammad Awais mohammad.awais@cpitrademedia.com WEB DEVELOPER Sadiq Siddiqui sadiq.siddiqui@cpitrademedia.com FOUNDER Dominic De Sousa (1959-2015)


Etihad Towers | Abu Dhabi | UAE


6

ONLINE

MOST POPULAR

READERS’ COMMENTS

FEATURED

CONSTRUCTION

OVER HALF OF CONSTRUCTION LEADERS EXPECT 6-10% GROWTH OVER THE NEXT YEAR

Oman’s first utility-scale wind farm starts operations

The industry has changed a lot over the last decade, and now it looks like we are set for even greater change. For one reason or another, I didn’t get to participate in this KPMG survey (see

CONSTRUCTION

HH Sheikh Mohammed bin Rashid Al Maktoum ‘satisfied’ with Expo 2020 preparations

Site Visit: Nakheel’s Palm Tower

CONSTRUCTION

China’s CNTC wins contract for Reem Island’s Pixel project

CONSTRUCTION

Expo 2020 Dubai irrigation and landscaping projects costing over $75m

CONSTRUCTION

Tasmim awards Unique Contracting Habitat contract September 2019 | MEConstructionNews.com

Opinion: The power of effective communication in construction

Over half of construction leaders expect 6-10% growth over the next year), but look beyond the headline and it is fascinating to see how the construction industry is being ‘disrupted’ by technology. While the use of drones and 3D printing aren’t necessarily mainstream yet, it is clear that we have to be prepared (and are preparing) for major changes in the industry. Almost 8 out of every 10 of the people surveyed believed that modular fabrication is going to be widespread within the decade – and I think that’s being driven by the developers – but I think contractors also need to be finding ways to use technology to take costs out of their own operations. Name withheld by request


Sheikh Zayed Grand Mosque | Abu Dhabi | UAE


8

THE BRIEFING

Power grids

The Next Stage of Development

UNITED ARAB EMIRATES

Venu Nuguri, senior group VP, Power Grids Business, South Asia, MEA, speaks to Big Project ME about the recent ABB-Hitachi Power Grids deal

Can you provide details on the partnership of the Power Grids deal – why it happened, the reasons and where both companies stand to gain? Power Grids will strengthen Hitachi as a global leader in energy infrastructure, and Hitachi will strengthen Power Grids’ position as a global leader in power grids. A joint venture with Hitachi was identified as the way forward, as it strikes the right balance between heritage, continuity and opportunity. Hitachi is a committed, long-term oriented partner who offers new opportunities. The JV will bring together two highly respected companies in their

September 2019 | MEConstructionNews.com

respective fields and geographies and enhances ABB Power Grids’ position as a global leader in the power sector with a sizeable and complementary presence across global markets. Hitachi will support Power Grids to reach the next stage of its development, building on the solid foundation. The new ABB will focus on expanding its leadership in digital industries. How will this affect your market share in the GCC? We currently have double-digit market share across all major markets in the region. The JV will bring in new market opportunities, considering the sizeable

7GW The renew-

able energy project pipeline reached nearly 7GW of new capacity by 2018 in the GCC


9

and complementary presence of the two highly reputable companies. Our overall strategic direction will continue in pursuit of sustainable and profitable growth, and we aim to continue gaining market share across the GCC region as well. What will this mean for your current and future projects in the region? The JV will ensure continuity in terms of ABB Power Grids’ strategy, leadership and commitment to customers. The joint venture sends a clear signal of continuity in terms of business, strategy, transformation and people. The current leadership team of ABB Power Grids will ensure continuity and lead the future organisation. Despite the structural change in ownership as part of its overall business and vision repositioning across the company, ABB stays committed to ABB Power Grids in the next phase of its journey by maintaining a minority stake in the JV. The JV with continued participation of ABB is an assurance of its commitment to ongoing projects and tenders.

Next-generation grid Due to the increasing penetration of renewables, the nextgeneration grid must ensure safe, reliable and quality power.

Huge opportunities There will also be huge opportunities arising from digitising the grids, which will be key to managing their increased complexity.

What sort of leverage will the deal give ABB when it comes to renewable energy? The world is moving to new and varied sources of green energy, and we lead the way regarding the low-carbon, sustainable-energy future from fossil fuels. The energy revolution is driving changes in how electricity is being generated, transported and consumed globally. Transmission and distribution of electricity through a power grid that combines power generated at all voltage levels from intermittent renewable sources along with traditional generation is very challenging. Power from traditional fuel sources can be scheduled; renewable power generation is less predictable. Due to this increasing penetration of renewables, the grid will have to be prepared for the associated issues, and the next-generation grid will have to ensure safe, reliable and quality power. The JV will provide a platform globally to collaborate and build on key emerging areas like renewables, mobility and smart cities. Our combined product portfolio covers the energy value chain from

The world is moving to new and varied sources of green energy, and we lead the way regarding the lowcarbon, sustainableenergy future from fossil fuels� generation to distribution and beyond, and will enable the new JV to play a pivotal role in the energy revolution. What is your outlook for the renewable energy market? What are the opportunities, challenges and potential areas for future growth? Although a relatively recent entrant to the Gulf Cooperation Council (GCC) energy landscape, renewable energy has advanced speedily within the GCC countries since 2014. The project pipeline reached nearly 7GW of new capacity by 2018. Supported by strong enabling frameworks, record-breaking bids in renewable energy auctions within

the UAE and Saudi Arabia have made alternative energy cost-competitive against conventional energy modes. In fact, solar PV prices and dispatchable concentrated solar power (CSP) of prices per kilowatt hour are less than what some utilities in the region pay for natural gas. While the region has substantial oil & gas reserves, rising populations and economic diversification have led to larger energy demand. Primary energy demand in the region is expected to continue to rise at an annual rate of almost 2% through to 2035. Renewables hold huge potential to lower fuel prices, cut back carbon emissions and optimise environmental footprint. As mentioned, with increasing renewable penetration, it is expected that the grid will experience instantaneous variations in renewable power in the system. Consequently, significant grid investments and technologies are required to address these challenges. There are great opportunities in interconnecting regional grids. There will also be huge opportunities from digitising the grids. The transparency and flexibility offered by a fully digitised grid will be key to managing the increased complexity resulting from these developments, and is therefore an important facilitator for future energy policies.

MEConstructionNews.com | September 2019


10

THE BRIEFING

Is big data transforming the construction industry? MIDDLE EAST

Experts in the construction and real estate industry reveal how data has transformed the built environment, while untangling how firms are finding ways to analyse and structure this data to mitigate risk and improve overall performance

| MEConstructionNews.com | MEConstructionNews.com August 20192019 September

A

s technology is evolving, the construction industry is capturing more data than ever before through a variety of means to make better decisions, increase productivity, improve job-site safety and reduce risk, among other things. Traditionally, the built environment has always recorded basic information about project schedules, designs and drawings, price points and details. However, the concept of collecting data to gain insight and make better decisions in the field of construction and real estate is a competitive advantage for an industry that is slow to adopt technology. In fact, the industry is not only accessing more data but is appropriately analysing it to draw practical conclusions, and companies are realising the benefits

and insights that big data analysis has the potential to unlock. Talking about the use of data analytics in real estate development in the UAE, Mubarik Hussain, director of IT at Bloom Holding, an Abu Dhabi-based real estate builder, says, “Developers are using data analytics for two things majorly. One is to plan projects to get the highest return on investment, and the second is during execution to analyse the performance of projects so they complete on time and within budget.� He says the benefits of these technologies will eventually be realised and understood by business leaders within the construction ecosystem, and then companies that deploy them will have an edge over companies that do not. Stefan Hickmott, CEO of Evarei Management, a business management consultancy in Dubai, believes


THE BRIEFING

With BIM, digital representation of physical built assets – from concept to demolition – is becoming more commonplace and presents a huge opportunity for integration with big data analysis captured from online and research portal sources” technology is allowing the construction industry to collect, manage, process and disseminate meaningful big data more than ever before. “Big data has the significant advantages in helping to plan, develop and operate buildings during the real estate evolution lifecycle, in relation to researching and analysing social elements, demographics and current and future competitor projects, to helping plan in detail a new project, to managing costs and efficiency of operations,” he says. Big data analytics are making a huge move in this industry. Hussain explains that with big data there are valuable hidden insights not traditionally available through mainstream analysis that can maximise the value of developments, while also being able to value engineer to increase the profitability of a development. With the help of predictive analytics, it has become possible to contemplate prevailing impediments and create a back-up in case of unforeseen disaster. Hickmott points out that with building information modelling (BIM), digital representation of physical built assets – from concept to demolition – is becoming more

commonplace and presents a huge opportunity for integration with big data analysis captured from online and research portal sources. However, extracting these insights requires expertise across industries and skill sets from technology, construction and development. “Having people with the right combination of technological and business skills is a challenge,” Hussain says. He notes that while over-reliance on big data has the potential of losing the spirit and essence of design and operations, with the physical product and service becoming too cold, data analytics has helped to put an end to legacy realtor trends, leading to a much-advanced real estate paradigm. Hickmott says that while there are many ways to do predictive

Embracing big data Hickmott (below) says that the use of big data is set to develop enormously in the real estate industry over the next decade.

“Currently,

only a fraction of the data that is generated and available is being analysed”

11

analysis, the most common forms today centre around the mapping of demand characteristic and patterns and consumer habits. This is true in the sense that real estate technology algorithms have helped in the optimisation of financial resources spent on any project. Hickmott agrees that this can continue to have a major effect on the planning phase of a project, effectively using big data to micro-program the success model, design and costefficiency of new development projects. Meanwhile, Hussain believes that technology solutions give insights into how viable a potential project is and tailor developments for customers, while increasing customer satisfaction and demand. “Along with solutions for managing the project, smart contract and blockchain payments will help to minimise the risks for taking on the projects and will help to reduce and control costs as the projects are being executed,” he says, giving the example of the UAE government’s adoption of blockchain technology platforms that are helping to improve the construction ecosystem. Hickmott says big data will develop enormously in the industry in the next decade, explaining: “Embracing big data is becoming more commonplace with developers and building operators, and eventually will be a natural requirement to efficiently build and manage properties which respond to their market opportunity and environment accurately and optimally, and will help to eradicate human error.” Hussain summarises: Considering that developments can costs hundreds of millions or billions of dollars, ensuring that projects are being executed optimally is highly beneficial for master developers and contractors. “Currently, only a fraction of the data that is generated and available is being analysed, so there is large potential to expand on this.” “The use of technology in real estate planning and development is still very nascent, but is increasingly becoming an essential tool to avoid pitfalls in real estate development,” Hickmott adds.

MEConstructionNews.com | September 2019


12

THE BIG PICTURE

01 UNITED STATES OF AMERICA

03 SCOTLAND

Bleutech Park unveils plans for $7.29bn mixed-use scheme in Nevada

Acciona wins contract for $450m energy-from-waste facility in Scotland

Real estate investment trust Bleutech Park Properties has announced plans for a $7.29bn mixed-use project, Bleutech Park Las Vegas, in the Las Vegas Valley in Nevada in the US, with construction expected to start in December 2019 and continue for six years. Expected to redefine the mixeduse environment, the Bleutech Park Las Vegas will feature workforce housing, offices and retail space, as well as ultra-luxury residential, hotel and entertainment facilities.

02 UNITED STATES OF AMERICA

Universal Orlando Resort to build new theme park in Florida Universal Orlando Resort has announced plans to build a new theme park in Florida in the US, Universal’s Epic Universe, to create a new level of experience that changes theme park entertainment. It will be located within a 3.03sqkm site, nearly doubling its total available land in central Florida. It will feature an entertainment centre, hotels, shops, restaurants and more. The theme park will be a few miles from the existing resort in Southwest Orange County – specifically, south of Sand Lake Road and east of Universal Boulevard.

Spanish infrastructure company Acciona has been selected for the construction and operation of the $450m Ness Energy Project, a waste-toenergy plant in Aberdeen, Scotland. It will be responsible for design and turnkey construction, commissioning, and operation and maintenance (O&M) of the facility for 20 years. The contract value includes the EPC work and the O&M contract for the entire period. The Ness Energy Project will have the capacity to treat 150,000t of waste per year.

04 UNITED KINGDOM

06 FRANCE

Gatwick Airport unveils $1.35bn fiveyear investment plan

France’s Suez selected to build $157m wastewater treatment plant in India

Gatwick Airport in the UK has unveiled plans for a $1.35bn five-year capital investment programme (CIP) in automation and technology. The new plan involves projects such as the extension of the North Terminal with new departure gates at Pier 6, check-in automation, expansion of the international departure lounges in the North and South Terminals, development of biometric auto-boarding technology and main runway technology optimisation, as well as rapid exit taxiway, baggage auto re-flighting, a new car park and a railway station development.

September 2019 | MEConstructionNews.com

05 UNITED KINGDOM

France’s Engie wins contract for student accommodation scheme in UK French company Engie has won contracts worth more than $243m from the University of Leicester for a student accommodation and regeneration scheme from Freemen’s Common Village. As part of the contract, Engie will oversee the delivery of 1,164 new student homes across seven blocks, refurbishment of a grade II listed building which will be used as office and study space, construction of a 500-space multi-storey carpark, and creation of a 9,000sqm teaching and learning centre.

French environmental services provider Suez was selected by Delhi Jal Board to build and operate a wastewater treatment plant in Okhla, south of New Delhi, India, for a contract value of $157m. Under the terms of the contract, Suez will be required to complete the design and construction of the plant in three and a half years, followed by an 11-year operation and maintenance contract. Once completed, the new plant will be the largest of its kind in India, Suez said, with the capacity to treat 564,000m3 per day.


THE BIG PICTURE

13

03 04 05 06

07

08

01

02

08 ITALY

EIB, CEB approve $1.7bn financing to upgrade Italian schools 07 SPAIN

EIB to provide $384m for 21 new wind farms in Spain The European Investment Bank (EIB) has announced that it will provide up to $384m to Saudi Arabia’s Alfanar to fund the construction of the 547MW Lanuza onshore wind project in Spain, which comprises 21 wind farms across a number of regions in the country. The new facilities will have the capacity to produce approximately 1.491GWh of clean energy annually, equivalent to the power use of 360,000 homes. Phase One will involve the construction of the first four wind farms, with a combined capacity of around 99MW.

The European Investment Bank (EIB) and Council of Europe Development Bank (CEB) have approved $1.37bn and $329m respectively in funding for the School Buildings Plan in Italy. The loan will be used to fund the works under the regional plan, which include projects promoted by public entities in the areas of anti-seismic adaptation and energy efficiency upgrading of school buildings, social infrastructure such as hospitals, co-generation and energy efficiency projects, renewable energy generation and improvements in the utilisation of water resources.

09 BOTSWANA

Fluor wins EPCM contract for Khoemacau project in Africa American engineering and construction company Fluor has secured an engineering, procurement and construction management (EPCM) contract from Cupric Canyon Capital for its Khoemacau copper and silver project in Botswana, Africa. Fluor’s scope of work includes upgrading the existing copper concentrator plant and new mine surface infrastructure. The project is expected to produce an annual average of 62,000t of copper and 1.9 million ounces of silver, with a mine life of more than 20 years. The company booked the undisclosed contract value in Q2 2019.

MEConstructionNews.com | September 2019


14

THE BIG PICTURE

15

12 10 11

13 14 16 17

18

10 EGYPT

12 KUWAIT

Bombardier consortium wins $4.5bn contract to build two monorail lines in Egypt

Hilton, Alshaya Group to develop 70 hotels in nine countries

Canadian manufacturing group Bombardier Transportation, in consortium with Orascom Construction and Arab Contractors, has signed a contract worth more than $4.5bn for the construction of two new monorail lines in Egypt. The consortium will be responsible for both design and construction and operation and maintenance of the lines for 30 years after completion. The two lines will have the capacity to transport around 45,000 passengers per hour in each direction.

September 2019 | MEConstructionNews.com

11 SAUDI ARABIA

TRSDC awards construction contract for Construction Village at Red Sea Project The Red Sea Development Company (TRSDC), the developer behind the Red Sea Project in Saudi Arabia, has awarded a contract for the construction of a residential village for workers. Following a competitive tender, the contract for the Construction Village was awarded in two parts to an ARCCO-Speedhouse joint venture based in the UAE, and to a Saudi company, Al Majal Al Arabi Group. Each will construct 5,000 units over the next ten months to house the initial 10,000 construction workers employed on the site.

Global hospitality firm Hilton has signed a master development agreement with international franchise operator Alshaya Group to develop 70 Hampton by Hilton hotels in nine countries. Under the terms of the agreement, the inaugural hotel is expected to be opened in Kuwait in 2021, followed by another 50 within the next eight years, while another 20 are in the pipeline. To be located in the Middle East and North Africa, Turkey and Russia, the hotels will significantly expand Hampton by Hilton’s presence in those regions.


THE BIG PICTURE

15

14 OMAN

DEWA awards $391m contract for power station at Hatta 13 OMAN

Oman’s first utilityscale windfarm starts operations, says ADFD A 50MW wind farm in Dhofar, Oman has produced its first kilowatt hour of electricity, marking a major milestone for the GCC region’s first utility-scale windfarm. Fully funded by the Abu Dhabi Fund for Development (ADFD), it was successfully connected to the sultanate’s electricity transmission grid during the commissioning of the project’s first wind turbine, which is now supplying clean power. Once fully commissioned, the windfarm will generate enough electricity to supply 16,000 homes – equivalent to 7% of the Dhofar governate’s total power demand.

A $391m contract has been awarded to a consortium comprising Strabag Dubai, Strabag AG, Andritz Hydro and Ozkar by the Dubai Electricity and Water Authority (DEWA), for the construction of a pumpedstorage hydroelectric power station in Hatta. The 250MW project is expected to operate for up to 80 years and is to be commissioned by February 2024. EDF has been appointed as the consultant for the project, billed as a first for the region. When operations begin, the project will diversify the energy mix and support economic, social and environmental development.

15 UKRAINE

EBRD to fund Ukrainian electricity transmission network upgrade The European Bank for Reconstruction and Development (EBRD) has agreed to provide $165m to Ukrainian utility Ukrenergo, to support the country in upgrading its power transmission network. Ukrenergo will use the funding to upgrade the key transmission and infrastructure needed to synchronise with European electricity networks. Ukrenergo will receive a 15-year sovereign-guaranteed loan, which will be used to acquire up to 26 new transformers, carry out the automation and upgrade 12 high-voltage substations in key locations.

17 PHILIPPINES

SMHC selected for $14.22bn Bulacan Airport in Philippines 16 THAILAND

TCC, Frasers JV announces plans for $3.65bn integrated district in Thailand A joint venture between TCC Assets and Frasers Property has unveiled plans for a $3.65bn project – One Bangkok, a fully integrated mixed-use district in Bangkok, Thailand. The scheme will seamlessly connect offices, retail, hotels, residences, and cultural and social spaces around a central 10,000sqm civic plaza. Spread across 167,000sqm, it will house 500 local and multinational organisations and employ over 50,000 people. In addition, the development will feature five new-to-market hotels.

Philippines conglomerate San Miguel (SMHC) has been selected by the Philippines Department of Transportation (DOTr) to construct the $14.22bn Bulacan Airport in Bulacan province. Expected to have a terminal capacity of 100m passengers per year, the new airport will feature four parallel runways and an 8.4km toll road connecting the airport to the North Luzon Expressway (NLEX) in Marilao, Bulacan. SMHC will commence the financing, design, construction, operation and maintenance of Bulacan Airport once it receives a Notice to Proceed in September.

18 SINGAPORE

Neste to expand renewable products facility in Singapore Finnish oil refining and marketing company Neste has commenced construction on the expansion of the new production line for renewable and sustainable products at its refinery in Singapore. The company, has invested $1.58bn in expanding its production capacity in the country. The investment will provide Neste with more options to choose between product solutions in the production system. Neste said it will also be used to create additional logistics capabilities and increase raw material pre-treatment, for the use of low-quality waste and residue raw materials for the existing refinery.

MEConstructionNews.com | September 2019


16

MARKET REPORT

Industry outlook

Kuwait Q3 Construction Market Forecast

KUWAIT

ProTenders analysis finds that Kuwait is shifting towards increased private participation in real estate and construction

U

nder the New Kuwait 2035 Development Plan, Kuwait is shifting towards increased private participation in the real estate and construction markets, in an attempt to build a more diversified economy. The country seeks to attract foreign investment by providing a more comprehensive roadmap and guidance in the implementation and operation of future mega projects, with the intent of increasing its revenues to $164bn by 2035.

September 2019 | MEConstructionNews.com

Tourism and recreational areas are expected to double with the development of Kuwait’s five islands, namely Boubyan, Warbah, Failaka, Maskan and Oaha, into economic zones with an investment value of up to $160bn, in turn requiring investment in the hospitality, residential, commercial and infrastructure sectors. Structured around these sectors, including healthcare, the Kuwait 2035 Vision is set to transform the country to diversify into a regional, cultural and financial hub. For Kuwait’s energy and infrastructure sector, an estimated $39bn is directed towards energy projects such as the Clean Fuels Project, the Al-Zour refinery and the Al Khiran Plant, while 36% is directed towards infrastructure projects such as the airport expansion, the causeway and regional roads and highway projects. Kuwait has begun working on oil & gas upstream and downstream projects that form part of its longer-term plans to increase hydrocarbon capacity, in anticipation of rising global energy demand. According to Kuwait Petroleum Corporation (KPC), the firm plans to

carry out a number of major projects to increase oil production to 4.75m barrels per day by 2040. Capital spending will also be increased by KPC’s plans to spend $34bn domestically over the next five years on oil & gas projects, an additional $80bn internationally, and $394bn beyond 2040. The government is also actively developing its experience structuring and procuring PPP projects, which is likely to translate into smoother and more efficient procurement processes. Greater use of the PPP model in infrastructure delivery is also expected to reduce public financing pressure and promote development. Kuwaiti property developer Tamdeen Group’s Shaikh Jaber Al Abdullah Al Jaber Al Sabah International Tennis Complex is one of the country’s significant PPP projects, and the biggest sports project in value and size under the Kuwait Public Authority for Sport. The value of contract awards expected for the second half of 2019 is $12bn, with 52% in the oil & gas sector alone.


MARKET REPORT

VALUE OF PROJECTS BY STATUS ($BN)

ONGOING PROJECTS BY SECTOR ($BN) Planning

Oil & Gas

84.3

239.2

Oil & Gas

103.5

428.6 Total Under Construction

UPCOMING PROJECTS BY SECTOR ($BN)

Infrastructure

70.3

17

Infrastructure

73.6

78.1

239.2 Total

189.4 Total

Urban Buildings

Urban Buildings

Design

46.4

Tender

58.7

65.3

37.7

The value of contract awards expected for the second half of 2019 is $12bn, with 52% in the oil & gas sector alone�

6

12

25

43

6 SK Engineering & Construction

Kuwait Oil Company (KOC)

SSH Design

50

Fluor Corporation

18

Fluor Corporation

9

Mohammed Abdulmohsin Al Kharafi & Sons Company

75

Petrofac

24

Hyundai Engineering & Construction Company

12

Ministry of Public Works (MPW)

100

Kuwait National Petroleum Company

30

Kuwait Authority for Partnership Projects

15

The Secretariat of The Supreme Council for Planning & Development

125

Parsons International

TOP 5 CONSULTANTS BY VALUE ($BN)

Amec Foster Wheeler

TOP 5 CONTRACTORS BY VALUE ($BN)

Gulf Consult

TOP 5 DEVELOPERS BY VALUE ($BN)

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6.0 Infrastructure

Urban Buildings

7

6

5

4

3

2

2.0 1

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3.0

MEConstructionNews.com | September 2019


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ANALYSIS

Railway systems

Rail is the Cornerstone of the Middle East’s Sustainable Future Mobility MIDDLE EAST

Significant investment in railway systems will play an important role in supporting economic development, says Cécile Texier, Sustainability and CSR vice president at Alstom

T

he threat of human-made climate change, pushed by our continuing use of fossil fuels for energy and automotive transportation and the accompanying CO2 emissions, is one of the most urgent crises facing the Middle East and our world today. While the global energy sector is transitioning towards renewable energy, the global transport sector remains heavily dependent on fossil fuels. Even with current and announced CO2 mitigation policies, transportation CO2 emissions are projected to grow by 60% by 2050. To prevent climate disaster, and to improve the mobility and health of communities in the Middle East and across the globe, we must decarbonise

September 2019 | MEConstructionNews.com

96% Riyadh’s

Metropolis trains have a variety of energyreducing innovations and are also recyclable up to 96%

transportation. Worldwide, transportation accounts for about a quarter of carbon dioxide emissions and 40% of energy usage. Transportation is also a major contributor to localised pollution such as particulates from car, bus and truck engines, which can adversely affect the health of people and communities. Already, the Middle East is making great gains towards achieving transport decarbonisation. Major regional investments in rail and metro networks, including the Riyadh Metro and the Dubai Metro Red Line extension, are examples of the region’s leadership in driving the modal shift in transportation, and helping to enhance mobility and reduce auto traffic and air pollution. Iraq is also advancing mobility projects,


ANALYSIS

including an elevated light rail in Baghdad and a metro in Basra. Among these rail projects, the $22.5bn Riyadh Metro is particularly ambitious in its scale, building from scratch a network that will provide comprehensive, citywide mass-transit coverage. By moving passengers away from the roads and onto an electrically powered transit system, the Riyadh Metro will reduce transport emissions, relieve traffic congestion and improve residents’ health and quality of life. Progressive decarbonisation of electricity can bring additional benefits. The Riyadh Metro’s Metropolis trains have a variety of innovations to reduce energy consumption, such as full electrical braking to standstill, HVAC regulation, new silicon carbide

40% Trans-

portation accounts for about a quarter of carbon dioxide emissions and 40% of energy usage worldwide

technology for auxiliary converters and full LED lighting. The trains are also recyclable up to 96%. For the Dubai Metro Red Line Extension, the Axonis fully integrated metro system offers a 20% energy saving compared with traditional metro systems. Integrated technologies across signalling, tracklaying, power delivery and energy management all contribute to sustainability. Electrification and Hydrogen Fuel Can Deliver Major Benefits to Mass Transit But surely, people might ask, won’t electric cars remove many of the environmental advantages of mass transit? Electric vehicles can help to reduce some emissions, certainly. But in and between our dense cities, we need solutions that provide highcapacity transport while minimising land use and carbon footprint. Electrified rail remains the most effective means of moving large numbers of people, from mainline rail to metro and tram systems. Rail transport can be integrated with lastmile solutions such as private cars and ride-share services. Our ambition must be to reduce emissions and to enable the transition in mobility for each step along the passenger journey. We must also continue to improve the environmental performance of rail and address the energy transition in rail. Across the EU, for example, only about half of all rail lines are electrified, with the rest powered by diesel. Increasingly, global rail operators are adopting innovations such as hybrid solutions that can combine diesel power with electric batteries, particularly for shunting operations for locomotives. One of the most exciting developments in electrical mobility is the steady adoption of electric buses worldwide, which can improve convenience, efficiency and the passenger experience. Beyond electrification of rail and buses, hydrogen fuel cells are set to become a key solution for high autonomy and demanding applications in urban mobility. Alstom has put in commercial service the first train powered by a hydrogen fuel cell, the Coradia iLint. Designed to replace regional commuter

21

Major regional investments in rail and metro networks, including the Riyadh Metro and the Dubai Metro Red Line extension, are examples of the region’s leadership in driving the modal shift in transportation, and helping to enhance mobility and reduce auto traffic and air pollution” trains running on diesel fuel, the Coradia iLint has a 1,000km range on a full tank of hydrogen, and a top speed of 140km/h. While European countries continue to replace their existing bus and rail stock, the Middle East can adopt the latest technology innovations from the outset as the foundation of new mass transit systems. With the Middle East seeing massive rail investment in brand-new infrastructure and rolling stock, there is a major opportunity for the region to adopt the most advanced and most sustainable technology from the outset. When combining urban mobility with the even larger investment in renewable energy, the Middle East is in prime position to be a leader of change.

MEConstructionNews.com | September 2019


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ADVERTORIAL

Dispute resolution

Setting new precedents MIDDLE EAST

Nesreen Osman, partner at Pinsent Masons, writes about the steps the UAE is taking to further bolster its reputation as a worldleading dispute resolution hub

T

he UAE construction industry has faced a number of challenges over the past few years, and although this is in line with global trends, such a slowdown becomes especially noticeable given Dubai’s reputation as the home of mega projects. However, in spite of global economic challenges, 2019 has proved promising so far for the UAE construction sector. According to Pinsent Masons’ annual GCC Construction Survey, more than half (58%) of respondents have experienced an increase in orders so far in 2019. And while

the survey reveals that KSA is the number one market expected to deliver growth in 2019, respondents were on the whole optimistic about the UAE construction sector and 96% of respondents believe the UAE is the easiest market in the region in which to do business. Across the UAE and GCC, construction activity is projected to remain active, with a pipeline of 27,000 planned projects worth $2.38 trillion across the region, according to industry analysts and executives. Against that background, the UAE remains home to some of the world’s largest and most complicated mega projects. Due to the scale of such projects, few precedents exist, which can cause additional challenges if dispute resolution is required. However, it also provides a great opportunity for the UAE, and the region as a whole, to develop a stellar reputation as a worldleading dispute resolution hub. The much anticipated passing of the Arbitration Law in the UAE last year substantially bolstered the nation’s reputation as a sound option for international companies looking to resolve their disputes. Considered one of the most significant law reforms undertaken by the government in recent times, the law offers practical changes of great benefit to the local and international business

community and demonstrates the UAE’s commitment to advancing its legal system in line with world-class standards. The changes brought about by the Arbitration Law reflect the UNCITRAL model law and include features such as allowing witness testimony to be given through modern telecommunications and enabling awards to be made at the seat of arbitration – replacing the costly practice that required awards

A strong and competitive judicial landscape is essential to promoting foreign direct investment and further economic growth”

to be issued physically in the UAE. A strong and competitive judicial landscape is also essential to promoting foreign direct investment and creating an investor ecosystem that promotes further economic growth. Two common law courts already exist within the UAE in the form of the DIFC Courts and the ADGM Courts. However, the UAE continues to work hard to develop its court systems in order to provide international business with more confidence in operating in the UAE. In a first for the region, in late 2018 the Courts of Abu Dhabi introduced compulsory English translation for civil and commercial cases involving non-Arabic-speaking defendants. Previously, all court documents were submitted in Arabic only. Abu Dhabi also recently created a specialist Commercial Court to handle civil disputes over AED 1 million in value and, in another first, appointed two high-profile American judges to preside over such disputes. These moves are all aimed at strengthening the effectiveness of the judicial process in the Emirates. As the UAE continues to bolster its reputation as the home of big projects, it will no doubt continue to make changes and improvement to its dispute resolution forums with a view to further cementing its reputation as a world-leading disputes resolution hub.

MEConstructionNews.com | September 2019


24

IN PROFILE

Giuseppe Chiaranda

“In a competitive market, the margins and the profits can be very low. The market requires contractors to be very efficient. That’s the price of being competitive, and it’s the only way to survive in this market” GIUSEPPE CHIARANDA, DIRECTOR OF RIMOND GROUP, SITS DOWN FOR AN EXCLUSIVE CHAT WITH BIG PROJECT ME TO DISCUSS THE IMPACT OF EXPO 2020 DUBAI AND HIS WIDER AMBITIONS FOR THE REGION September 2019 | MEConstructionNews.com


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MEConstructionNews.com | September 2019


26

IN PROFILE

n 2016, it was announced that two of the leading names in Italy’s construction industry were coming together in the UAE to bring a raft of architectural, manufacturing, engineering, project management and building solutions to the region. Three years on from that announcement, the Cimolai Rimond Middle East joint venture has gone from strength to strength, offering complete turnkey construction solutions based on the latest advancements in building information modelling (BIM) technology. Not only has the company been an enthusiastic advocate for using technology within the regional industry, it has also highlighted what can be achieved through its adoption and use with its expanding portfolio of high-profile projects. Among the most prestigious and important of

Technology advocate Rimond has been a long-term advocate for the use of technology on construction projects across its portfolio.

18.5m UAE pavilion Expo 2015 project value, in euros

these projects are the Expo 2020 Dubai pavilions and structures that the company is building. In December 2017, Cimolai Rimond was awarded the contact to provide steelwork for the intricate domed trellis of the Al Wasl Plaza. Once finished, the structure will weigh 2,265t and enclose a space of about 724,000m3, marking out the plaza as one of the must-visit attractions at the event. In addition, the Italian-owned joint venture has been tasked with carrying out the enabling and foundation works for New Zealand’s $34.8m pavilion at Expo 2020 Dubai, which will be a spiral-shaped building architecturally inspired by the country’s Maori heritage.

Internationally, both partners have been associated with challenging and internationally known projects covering the full breadth of market segments, including hospitality, healthcare, education, exhibition centres and country pavilions at previous expos. One of those projects was the acclaimed UAE Pavilion for Expo 2015 in Milan, which was then broken down and shipped to Masdar City, where it has now been reassembled and turned into a showpiece structure at the sustainable city. As the contractor for that project back in Milan, and having overseen its disassembly, shipment and reassembly in Abu Dhabi, Rimond has been involved with the UAE for many years, having long operated an independent officer in the country prior to the joint venture. Operating as a multi-faceted construction company with expertise that spans architectural design, general contracting, engineering and project/ construction management, Rimond is the driving force behind the Cimolai Rimond joint venture. With its specialisation in leveraging technology in new and exciting ways, the company has delivered a high level of architectural, engineering and construction performance to its customers. With Expo 2020 Dubai looming and the company ramping up operations in the region, Big Project ME sat down with Giuseppe Chiaranda, director of the Rimond Group, to

We are focusing more on special projects where we can add value with our experience of handling complex geometrics and models. Whenever there are these kinds of opportunities, that’s where we want to place ourselves” September 2019 | MEConstructionNews.com


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IN PROFILE

Al Wasl Plaza is quite a unique project. It has never been built before. It will be one of the largest immersive experiences in the world, where the people inside can be astonished by large projections inside the dome” discuss his plans for the company ahead of a crucial business cycle. “We started operations in the UAE in 2016, taking the opportunity of this project in Abu Dhabi in Masdar, which was related to Expo 2015 in Milan. That was the relocation of the UAE Pavilion. From there, we immediately focused on Expo 2020, because of our experiences in Milan. “We are now deeply involved in Expo 2020. We’ve taken on projects – one is Al Wasl Plaza, which will be the central part of Expo 2020 Dubai, and the New Zealand Pavilion. Apart from that, we’re also working in Meydan as a consultant of the main contractor on this huge

project, which will be one of the largest malls in the world,” Chiaranda says. “We are focusing more on special projects where we can add value with our experience of handling complex geometrics and models, in addition to fast-tracked projects. This is mostly our skillset. Whenever there are these kinds of opportunities, maybe with high-ranking architects or sophisticated clients, that’s where we want to place ourselves in the market.” Having seen first-hand the impact of the Milan Expo on the city, Chiaranda predicts that next year’s mega event will have a similar effect on the UAE project development market. He points

September 2019 | MEConstructionNews.com

34.8m New Zealand pavilion project value, in USD

Special value Rimond is focusing on special high-profile projects where it can add value with its experience of handling complex projects.

out that not only will Dubai see an immediate boost, but that neighbouring cities like Abu Dhabi should also benefit, especially when coupled with initiatives like Vision 2030. “Having seen the beneficial aspects of an Expo, not only during the period of the event but past that as well, [I believe] it will give an opportunity to many people to visit Dubai for the first time, and allow them to understand the benefits and the positives of living in Dubai or having a house here. “This should bring a boost to the market, in my opinion. Statistically, any world event will have an effect afterwards – an improvement. Before,


IN PROFILE

during and after the event, I think Dubai will benefit the most from this, but even places like Abu Dhabi, I can see that with Vision 2030, some projects are coming under the spotlight. I think in one or two years, we’ll start seeing some feedback from these new market opportunities,” he asserts. Furthermore, Chiaranda is keen to highlight that the Expo 2020 Dubai projects are going to be benchmarks for the industry, not only due to their high-profile nature, but also because of the technological excellence and skills that they demand, which in turn will stand the joint venture in good stead for future projects. “Al Wasl Plaza, for example, is also quite a unique project. It has never been built before, which is like Dubai usually does. It will be one of the largest immersive experiences in the world, where the people inside can be astonished by large projections inside the dome. This is something that will make the project unique worldwide.”

Setting the standard The Expo projects won by the joint venture will set the benchmark for the industry, due to their technical excellence.

In addition, he reveals that following the successful reassembly of the UAE Pavilion from Expo 2015 Milan, other countries have also expressed an interest in relocating or reusing all or part of their pavilions for Expo 2020

29

Dubai. However, he stresses that these projects have to be first designed with that intention in mind before any work can take place on the ground. “We have been approached by some companies with this idea, but the design has to first reflect it. It needs to be dismantlable, transportable and reassembled wherever they want. I cannot disclose the countries that are wanting that, but many of them have this idea.” While the upcoming Expo and its projects understandably take up a large amount of the company’s attention, Chiaranda says his focus is also on establishing Rimond as a major player within the GCC construction space. He believes the company’s well-known technological expertise will stand it in good stead as it chases new projects and clients for 2020 and beyond. “Dubai is forecasting new, special projects [all the time] and trying to be unique. It is very focused on innovation. Being an innovative company in

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30

IN PROFILE

an innovative environment, that’s where it helps to be [as technically proficient as Cimolai Rimond]. The construction market is traditionally not very innovative, so bringing some innovation into construction is a target that I think Dubai has. “I think we have quite a unique model that is deeply based in the digital world, in handling the design, the procurement and the scheduling and programming of the works. Not all the works can be adapted to this digital model, but when we have the opportunity to work on design and build projects, this is where these kinds of skills can be really helpful, especially if it’s a fast-track project.” Looking ahead, Chiaranda envisions the company having a “permanent, inductive role in the UAE” where it won’t focus on a large number of projects, but rather on interesting ones that will provide a challenge to both the contractor and the client. “In my opinion, there will be an opportunity in the Dubai Creek area, where innovative projects are already being designed and are ready to start. It is one of the largest areas of development in Dubai. Also there is the Al Maktoum Airport and all of the areas related to Dubai South. These will benefit from Expo 2020 Dubai. “In Abu Dhabi, they have Vision 2030, where the government’s ambition is to redevelop and develop new areas, as well as improving logistics. Entertainment

We also have some connection with Saudi Arabia. Ultimately we need to find the right time to step into that market, because it’s a huge market. You need to decide very carefully where, when and which project you’ll be starting with” Ambitious targets Chiaranda wants Rimond to take on projects that match the government’s ambitions and challenge its capabilities and skills.

2.265 weight, in

tonnes, of the Al Wasl Plaza structure

September 2019 | MEConstructionNews.com

projects and museums are ongoing, with some projects already underway, but more culture and entertainment development can come. That’s something we’ll need to focus on. “We also have some connection with Saudi Arabia. We are talking with clients there. Ultimately we need to find the right time to step into that market, because it’s a huge market. You need to decide very carefully where, when and which project you’ll be starting with,” he asserts. Despite his ambitions, Chiaranda is quick to add a dose of reality, pointing out that Rimond also needs to be aware of how its competitors are behaving in a

market with increasingly tight margins. While he accepts that the Italian firm may never be the cheapest, he insists that it provides greater efficiencies and optimisations on projects, making it an attractive option for clients. “It is a competitive market, and in a competitive market, prices need to be competitive. Therefore, the margins and the profits can be very low. While I haven’t seen issues with payments or liquidity, particularly with working for Expo 2020 Dubai, for sure the market requires contractors to be very efficient. That’s the price of being competitive, and it’s the only way to survive in this market,” he concludes.


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September 2019 | MEConstructionNews.com


PROJECT PROFILE

33

Mall of Oman DEVELOPER: Majid Al Futtaim Properties MAIN CONTRACTOR: Shapoorji Pallonji and CCC MALL DESIGNER: RTKL LEAD CONSULTANT: AECOM TOTAL BUILT-UP AREA : 450,000sqm TOTAL RETAIL AREA : 145,000sqm OPENING DATE: March 2021

Retail Vision

BIG PROJECT ME PROFILES MAJID AL FUTTAIM PROPERTIES’ MALL OF OMAN, WHICH WILL BE THE SULTANATE’S LARGEST RETAIL DESTINATION AND A KEY PART OF ITS ECONOMIC VISION ONCE IT LAUNCHES IN MARCH 2021 MEConstructionNews.com | September 2019


34

PROJECT PROFILE

s Oman’s real estate market continues to feel the effect of its increasingly youthful population, retailers in the sultanate are beginning to actively tailor their offerings to meet the needs and aspirations of the country’s youth. According to a recent report by JLL, developers in Oman are intent on modernising the retail sector to drive footfall and spend, as supply increasingly moves towards large malls with unique concepts and diverse leisure and entertainment offerings. “A number of factors are driving Oman’s retail sector, in particular the opportunities presented by evolved demands of the youth population. That, coupled with growth levers, is expected to boost demand in the long run, despite the sector’s performance being challenged,” says Dana Williamson, head of Retail, Offices and Business Space for MENA at JLL.

“In line with the regional move towards more experience-led retail offerings, there is an opportunity for developers to introduce new entertainment concepts and strategies to increase footfall and spend, and to specifically cater to the young target audience in the sultanate,” she adds. This approach towards retail development is amply evident in the construction of Majid Al Futtaim Properties’ Mall of Oman, set to be the biggest of its kind in the country. With 145,000sqm of retail space, a variety of dining outlets and a range of lifestyle experiences, including cinemas, a family entertainment centre and the largest

September 2019 | MEConstructionNews.com

Growth contributor Mall of Oman will contribute to the growth of the local tourism industry and positively impact the sultanate’s social development.

360 total

number of shops in Mall of Oman

indoor snow park in the sultanate, the developer expects the project to form a key part of Oman’s Vision 2040. “The tourism and retail sectors are integral to Oman’s economy and are poised to drive economic growth and contribute to diversification in the country,” said Ghaith Shocair, CEO, Majid Al Futtaim Shopping Malls, in an August statement announcing a construction update for the mall. “These objectives are aligned with Vision 2040, and we are privileged to be able to contribute to this vision as long-term partners and investors. By developing Mall of Oman, we continue to contribute to the growth of the local tourism industry and enable job creation for residents both during and post-construction. A development project of this size and scope is beneficial to Oman’s citizens and residents, and will positively contribute to economic and social development in the sultanate.” With the mall set to open in March 2021, work on the project is proceeding apace, with the developer recently confirming the delivery of new roads and flyovers connecting the mall to Interchange No 6 on the Muscat Expressway, as well as the completion of the Muscat Electricity Distribution Company (MEDC) Primary Substation, which will allow the nine distribution substations in the mall to be progressively energised, thus allowing the completion of the central cooling plant. The extensive roads upgrade to Interchange No 6 will ease access to the mall, along with four new bridges and an underpass, the developer adds. The interchange has been expanded to include a new lane to each of the four quadrants, so as to serve more commuters. In addition, extensive retaining walls and utility divisions have been completed to facilitate the works, while the new access will add to the convenience of visiting the mall and lead to 5,200 dedicated parking bays. More than a kilometre of the 12-metrehigh retaining walls is now in place, as is initial road directional signage for the Mall of Oman, the developer says, pointing out that the project is approximately 70% complete today, following the achievements of these two main milestones in July 2019.


35

“An active schedule of work streams is in place to keep us on track for the March 2021 opening. Specifically, work is underway to complete the mall roof, which includes skylights and waterproofing, while energisation of the number nine substation is also ongoing,” the developer tells Big Project ME in an exclusive progress update. “At the same time, the team is commissioning the central cooling plant and completing delivery of the secondary chilled water for wild air. The stone flooring is also being laid, ceilings are being installed in the mall corridors, and the south car park post-tensioning concrete works are underway.”

As it will be the largest mall in the country, with the widest retail, F&B and entertainment offerings, Majid Al Futtaim Properties’ expectation is that its strategic location, easy accessibility and diverse offerings will see the Mall of Oman established as a focal meeting point for Muscat’s residents, while also serving as an anchor attraction for regional and international tourists. The most distinctive aspect of the project is the construction of the large snow park, which will anchor the mall at its east end and will include extensive snowmaking systems. These systems are there to create and maintain temperatures of -2° Celsius in the snow park, which will

Strategic location The mall’s strategic location and easy accessibility will allow the Mall of Oman to establish itself as a focal meeting point for Muscat’s residents.

70 total

number of F&B outlets planned

house attractions including penguins and a roller glider suspended above the park. Tendering a project of this scale and technicality in the market required a robust tender list, so as to make sure that the main contractors had the resources and expertise to deliver on the developer’s vision. “In order to meet the challenge, the selected contractor is a joint venture between CCC (Consolidated Contractors Company) and Shapoorji Pallonji – a partnership that we believe will deliver the optimal outcome for the Mall and its visitors.” Majid Al Futtaim Properties took on the project management role itself, for faster decision-making and

We’re applying building information modelling on a weekly basis to monitor planned versus actual progress. The use of BIM in project logistics and engineering has been very helpful in mitigating any coordination issues” MEConstructionNews.com | September 2019


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PROJECT PROFILE

to maintain clear direction and open communication across the project team. Furthermore, as in all its other projects, it actively developed the retail master plan and functional layout. In the later design stages, and now during construction, the company’s in-house design studio has been working closely with the project’s international and local consultants to “apply the knowledge gained from its long-term development and management experience”. “For example, we created trackers for work based on the agreed Clause 14 Programme, which included sequence drawings so that all team members could better understand the methodology

Mall of Oman: Key Project Figures

Tracking work The project team created trackers for work so that all team members could better understand the methodology and timing of works.

5,400 parking spaces available in Mall of Oman

September 2019 | MEConstructionNews.com

and timing of works,” the developer tells Big Project ME. “Additionally, we’re applying building information modelling (BIM) on a weekly basis to monitor planned versus actual progress. The use of BIM in project logistics and engineering has been very helpful in mitigating any coordination issues.” The Majid Al Futtaim Properties team invested a significant amount of time and effort in working alongside the different utility companies and authorities to make sure all design NOCs were in place before the award of the contract. Agreements were also put in place to ensure the timely delivery of infrastructure by local utility companies. These measures were among the many logistical challenges facing the project team, as the company explains. “The site is bordered by the Muscat Expressway to the south, oil and gas pipelines to the north, Bousher Road to the east and adjoining plots to the west, which make this a complex project. However, we believe that it is critical to follow a detailed logistics plan and update it constantly, to ensure we deliver on our timelines and to a standard that is the hallmark of Majid Al Futtaim. “To manage risk in the project, an extensive enabling works contract was awarded to divert 33kV power cables, telecoms cables and water lines, to make sure a clear site was handed over to the main contractor. The team also had to complete an extensive cut and fill exercise involving around 650m3 of

TOTAL BUILT-UP AREA: 421,016sqm EXCAVATION OF ROCK: 650m3 CONCRETE POURED: 255,000m3 STRUCTURAL STEEL: 7,090 tonnes SCREED: 87,000sqm PLASTERBOARD: 33,357sqm EIFS: 54,131sqm STONE FLOORING: 31,887sqm CEILINGS: 50,353sqm TOWER CRANES: 16 MAN-HOURS: c.22,500,000 to date


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PROJECT PROFILE

rock in a short period of time, which was mechanically removed using in excess of 50 breakers at any one time. Coordinating all of this was a challenge, but one we were able to overcome given our integrated approach and focus on efficiencies,” the developer says. Alongside the rock removal and cable, telecom and water line diversions, the developer was also required to protect oil & gas pipelines from damage during the task of widening roads. Meanwhile, before construction could begin, there was an abattoir and recreational club on the site which had to be relocated elsewhere in the city to allow for the preparation of ground works. Beyond these tasks, a major new bridge was constructed over the live Muscat Expressway, which had to be completed without closing any lanes. Extensive road diversions were also undertaken to build a further three bridges; each was opened separately, the developer explains. Another key aspect of the project was making sure it lived up to the sustainability standards that form a part of the company’s core values. From the very beginning of the project, the entire team was briefed about the expectations and vision for Mall of Oman, with the target being for the highest possible standards across every stage of the development to be maintained. “We set out to achieve LEED Gold status – the international accredited benchmark for highly sustainable

An active schedule of work streams is in place to keep us on track for the March 2021 opening. Specifically, work is underway to complete the mall roof, while energisation of the number nine substation is also ongoing” developments – across the project, and we have reached this objective for the design stage. We are also currently on target to achieve LEED Gold status for construction, with an extensive photovoltaic solar scheme under development for the car park shades. “The upper car park is covered by solar panels with installed capacity of 2,300kWp, which generates around 3.6m kWh per year. Major recycling and waste diversion facilities are also being undertaken by the contractor to boost the mall’s sustainable credentials. Overall, the project will achieve the LEED Gold status and we intend to aim for a Platinum certification also, as we achieved

September 2019 | MEConstructionNews.com

Robust policies Majid Al Futtaim Properties has implemented robust HSE and sustainability policies on the project, guaranteeing high standards.

70% estimated

current construction completion

with our development of the City Centre Me’aisem and City Centre Mirdif malls in the UAE,” the developer says. A robust HSE policy is also in place, implemented by Majid Al Futtaim Properties itself. A full-time HSE manager has been employed on the project, working alongside the consultant’s HSE managers to guarantee that the developer’s standards and policies are implemented and maintained by all contractors. “Our team undertakes labour accommodation audits to ensure the workers’ facilities meet our strict requirements, while weekly site walks are completed by senior HSE members with full representation from Majid Al Futtaim Properties, the consultants, and contractors directly involved in the project.” As the project continues to progress towards completion, it becomes clear that Mall of Oman will show the way forward for the sultanate when it comes to delivering projects of this size and scale. However, its impact will clearly be most powerfully felt in the country’s still nascent retail sector; it is likely to set the standard for years to come, just as the developer intends. “The development will set a new benchmark of quality in the sultanate for every kind of visitor. The mall will represent so much more than simply a place to shop, it will be a place to create great moments between people.”


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SHOW PREVIEW

Cityscape Global

Cityscape Global 2019 MIDDLE EAST

Cityscape Conference shines spotlight on real estate and development transformation

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ropTech – the technology transforming the real estate and development ecosystem – is being prioritised by the Cityscape Global exhibition and content platforms, with exhibitors saying the disruptive element is already impacting construction practices as the industry moves towards delivering intelligent buildings. The Cityscape Global exhibition runs at the Dubai World Trade Centre from September 25-27, while the Cityscape Global Conference runs on September 24 at the InterContinental Dubai Festival City, and will reflect PropTech’s high sector profile with its theme: ‘Adapting to Change: Charting a Course in an Era of Transformation’. “PropTech is a key transformational element impacting literally all aspects of

the industry, from design and planning to construction and even marketing. The impact is also crosssectional, taking in commercial, governmental, hospitality and residential real estate as the industry leverages digitisation, 3D printing and artificial intelligence to deliver intelligent buildings and smart cities which are arising worldwide, including the Middle East,” explains Chris Speller, Cityscape group director, Informa Markets, which organises Cityscape Global. The Cityscape Global Conference is set to take on a futuristic stance, with experts in design and build innovation and the acceleration of the smart city revolution taking to the stage. The PropTech focus will expand beyond the conference floor. A slew of Cityscape Global exhibitors are weighing into the show, armed with an arsenal of PropTech expertise and expectations. Project consultant Drees & Sommer Middle East, which now begins every project with a digital strategy, says the Middle East construction sector is witnessing stronger growth this year, as greater opportunities for digitisation and revitalisation emerge. The company is planning a fully digital presence at Cityscape Global, where it will showcase

September 2019 | MEConstructionNews.com

its Blue City model of integrated, sustainable urban solutions for tomorrow’s cities, with interactive screens and informative videos. “We believe that the future belongs to intelligent buildings. Streamlining the digital transformation of workplaces and construction practices in the Middle East will hold innumerable benefits for the sector,” says managing director of Drees & Sommer Middle East Stephan Degenhart. “Adopting digital solutions throughout every phase of the construction process could increase market productivity by as much as 15% and reduce project costs by up to 45%, according to recent research by McKinsey & Company. At a global level,

The hot topics are still sustainability, technology and more recently AI, and the way developments in these areas are changing our lifestyles”

digitisation of the construction industry could save up to $1.7 trillion within ten years, a new World Economic Forum report shows.” Global architectural and engineering practice P&T Architects and Engineers will be out to engage the industry with the latest design and build influences, which are ultimately changing lifestyles. “The hot topics are still sustainability, technology and more recently AI, and the way developments in these areas are changing our lifestyles, the way we want to live and work, and the buildings required to serve these needs,” explains James Abbott, director at P&T Architects and Engineers. “Architects and developers must both anticipate these trends and be ready to face new challenges. Our underlying approach does not necessarily change, but the level of sophistication we can offer in analysis and alternative design solutions increases with technology, so we must ensure that we still understand the fundamental requirements of successful design and bring projects to the market that meet all the social and economic as well as technological requirements.” Cityscape Global takes place 25-27 September 2019 at the Dubai World Trade Centre.


25 -27 September 2019 DUBAI WORLD TRADE CENTRE

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COMMENT

Industry insight

DAVID KIMMERLY WSP

It’s time to change AI’s bad rep

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ata can be our greatest ally, and artificial intelligence (AI) has the potential to propel humankind towards what we’re only able to imagine in science fiction. To get there, we only need a minor shift in mentality, a bit of cautious optimism and some major investment in innovation. While it appears that the world is charging towards an all-powerful problem-solving AI, some of the greatest minds of our time, including Elon Musk and Bill Gates, hold fearful respect for AI. These fears have a strong basis, given the fact that most of the world’s advanced technology has evolved from some aspect of military research and development. So should we really worry about a Matrix-style world takeover, or – to quote The Hitchhiker’s Guide to the Galaxy – will we finally answer the “ultimate question of life, the universe and everything”? AI is truly dividing the scientific community and public on whether it will be helpful, harmful or indifferent, and many question if we should even welcome it into our future at all. Philosophy aside, AI is already here; it’s all around us and part of our everyday lives. Over time it will enable us to work less and create more, and ultimately allow everyone to live a more enriched and connected life. But it’s a common misconception that AI is a science fiction pipe dream; much of our lives are already influenced and made better by advanced automation and AI. We have been on a journey to automate complex or routine processes for a millennium. The sheer thought of a pilotless airplane flying across the ocean makes some people feel uneasy, yet they don’t realise that today’s airplanes flying us around the world spend 90% of the flight on autopilot, even on landing September 2019 | MEConstructionNews.com

in some new airplanes! AI already affects so many of the services we wouldn’t want to give up. The Metro currently being built in the Middle East is driverless; online shopping and take-away food delivery use AI in some capacity. We are struggling to differentiate real people from chatbots when talking to our bank or paying our electric bill online. Admittedly there are different levels of AI. Some still fall into the automation category, but in general it is categorised into Narrow AI, Strong AI and Super AI. Narrow is the AI we all currently use on a daily basis, advanced algorithms that drive targeted advertisements on social media, and our home assistants. Broadening capabilities, Strong AI can do a whole lot more and can cope with many generalised tasks as well or better than a human can, such as unsupervised driving or playing chess. Strong AI will lead us into an era of fully intelligent robots, and ultimately Super AI, which will learn, evolve, and decide if it is our friend or foe. And that is where public concern comes in – if the first Super AI is developed by the military, and we slingshot it into our everyday life, what’s next? As an engineering leader, I have a responsibility to understand and showcase the positives of AI and to work to find new ways of incorporating this emerging technology into our workflow and ultimately into the places, buildings and infrastructure we design. With advanced design tools that leverage generative design, we can maximise the efficiency of a mall carpark, or when automated vehicles make car parking obsolete altogether, we can quickly redesign it into more retail space, or even something else like a school or hospital. When we peel away all the motivations behind AI development, we can see that AI is truly intended to help people, not hinder (or exterminate) them. It is being developed to make us more comfortable, live longer, connect better and sidestep many of the engineering restraints we may have to design for the future. We have the data, and through the Internet of Things are deploying tools to gather immense amounts of it from our environment. This data is the key to AI. AI is data-hungry, and the Super AIs of the future will thrive on the vast amounts of information available from us. Data is perhaps where the fears of AI

are rooted, as a fine line will need be drawn between helpful data and privacy invasion. Your personal data is no longer your credit card number or date of birth, as devices around you are gathering information on your eating habits, heart rate, hobbies, even who your true friends are. We will ultimately need to instil hard-coded ethics into the fabric of our AIs, or possibly give them a ‘food allergy’ of sorts to prevent the development of autonomous weapons or widespread social manipulation. The Super AIs of the future will be safe, secure, ethical and beneficial to society. Super AIs will work with us, because that’s how we’re going to design them. But what if we don’t? What if we design AIs with cavalier overconfidence that we can’t control, and give them access and capacity to process all of our data? Well, you’ve seen the movies. AI is coming. Just like the computer microprocessor, we’re about to have a moment in history that will launch AI into the mainstream and forever embed it in our society. It is our job to anticipate what AI will bring and prepare for it now. David Kimmerly is Operations director – Property & Buildings, Technical Management at WSP.

JAKE CALLAWAY 4C

Laying the foundation for digital transformation

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ountries across the Middle East and North Africa have been steadily building for the future. Economic programmes aimed at bolstering economies to meet the demands of a globalised digital age have become the norm. These


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Once a project is underway, your CRM suite can accelerate productivity throughout its lifecycle – to handover and beyond” initiatives have a shared history with rapid urbanisation around the world. Within the past decade, the proportion of us who live in and around cities has surpassed that of rural dwellers for the first time. Bearing the brunt of this fresh paradigm are construction companies, which have had to develop greenbelts and furnish expanding metropolises with new hotels, apartment blocks, gated communities, hospitals, schools and business centres. According to BMI Research, the MENA construction market will be worth $336bn by 2020, up from $235bn in 2016 – net growth of 43%. A steady project pipeline spells great opportunity for the sector as a whole, but its players lag behind other industries in digitisation. As a result, productivity has suffered and opportunities are routinely missed. Such efficiency deficits are common in the digital age. Each industry has struggled to identify where its place is in the Fourth Industrial Revolution; and each has sifted through its various challenges. One effective way construction firms can be pioneers in their field is to rethink Customer Relationship Management. DATA IS KING Effective CRM can homogenise the innovative spirit in surprising ways. First, by centralising data, your employees all receive the same view of your operations, past and present. The right CRM system can bridge a gap between untapped-anduseless and homogenised-and-actionable. The opportunities to get the attention of clients and shape their opinions in positive ways can be supported by having access to all relationship data, from current and past project wins to potential and in-process bids, including all supporting information about clients, suppliers, subcontractors and partners. Detailed views such as this can mean the difference between success and

failure on a bid, and between a mediocre or glowing reputation in the market at large. Once a project is underway, your CRM suite can accelerate productivity throughout its lifecycle – to handover and beyond. Your people should have real-time access to everything related to active and past projects. Good CRM design keeps such information in a sensibly managed store, not in email silos, as well as reducing paperwork and optimising project schedules and budgets. Information on past projects, coupled with effective business intelligence, can allow current project managers to learn valuable lessons from previous engagements, even if they were not personally involved. AUTOMATION TO THE RESCUE Automation can help to alleviate their burden as the number of live projects escalates. Well-appointed CRM systems generate key project reports in real time, create forecasts on the fly and assess profitability daily. Construction organisations also need to ensure that line of business works closely with IT to ensure the CRM system is designed to grow in tandem with the business. Your CRM system needs to be harmonised with other applications, such as payment processing, email and accounting. The right CRM is a valued consultant – part of the team. Another project manager; another timeline monitor; another accountant; another feasibility assessor. This kind of agility is the sort of edge that is so desperately sought by so many businesses looking to not only survive, but capitalise on, Industry 4.0. Thanks to cloud computing, the business intelligence of CRM – previously only available to the biggest industry players – is now within reach of everyone. Even the largest construction companies will gravitate toward the notion of costcutting that is integral to the cloud, which allows subscription-based ownership of leading-edge capabilities. AI, IoT, advanced analytics and many other tools are now part and parcel of the cloud and integrate smoothly with cloud-based CRM suites. ACTION PLANS So what’s the catch? Well, you must act. You must plan. And you must treat your digitisation like a never-ending journey, never afraid to

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travel to the next milestone. Like all digitisation stories, the construction industry’s travels with CRM require careful thought for the future. The elasticity of the cloud is certainly good news – it means that any change that comes along will be more easily absorbed by your CRM system, because it grows with you. But you must act. Those industry players that move first will show they can absorb the ballooning volume of projects on their books. These are the players that will emerge as winners. Jake Callaway is managing director, MENA at 4C.

JOANNE STRAIN

KING & WOOD MALLESONS

The impact of contract management on dispute resolution

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or over a decade, the UAE construction market has experienced dramatic peaks and troughs. The decline of market liquidity and oil price instability have drastically altered the way the stakeholder supply chain functions, causing an increase in project delays, cancellations and late payments. Uncertainty and volatility continue to result in a number of major projects falling into dispute, leading to an active claims market. Arbitration remains a popular choice, providing neutral governing law and language for resolving construction disputes. The ambitious, ground-breaking projects typically undertaken in the region can require specialist contractors to come together from all over the world to pool skills and capabilities. This is often in conjunction with local contractors offering essential long-standing expertise and accountability, giving rise to impressive MEConstructionNews.com | September 2019


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international collaboration by way of partnerships, joint ventures and consortia. Electing for arbitration as a means of dispute resolution, depending on the bargaining power of the negotiating parties, may provide a multitiered dispute resolution clause. This obliges all parties to engage in amicable settlement discussions or mediation prior to commencing arbitration, which forces them to make an effort to resolve a dispute before commencing costly formal dispute resolutions procedures. Be wary, however, of crafting complex, multi-tiered dispute resolution clauses. They can be difficult to comply with, giving the respondent party in any ensuing arbitration the opportunity to contest the arbitration on the basis that pre-conditions to arbitration have not been complied with. A well-written contract with a focus on contract administration can help prevent a dispute altogether. Transparent contracts tailored to the particular demands of the project and contracting parties can mitigate many of the risks associated with construction projects. They should clearly outline how progress is to be measured against agreed key performance indicators. Clear terms should be agreed to allocate responsibility for time delays and stipulate consequences. Bear in mind that UAE law permits a court or tribunal to amend any agreed liquidated damages clause retrospectively, to equal the loss suffered. On the occurrence of a dispute, close attention must be paid to the mechanics of the dispute resolution clause agreed, avoiding lengthy and costly jurisdiction challenges. Selecting the right arbitrators for nomination, with the appropriate industry expertise to deal expeditiously with the dispute, is crucial. Essentially, specialists with in-depth knowledge of UAE law will navigate the dispute resolution process, pursuing meaningful relief for claimant contractors while vigorously acting for defendants resisting ill-founded claims. Although the legal landscape is evolving and the prevalence of arbitration as the preferred method of resolving disputes is growing, there are market elements that remain unchanged. Project delays, cash flow and loose contract administration continue to be risk factors which developers, contractors and suppliers should and can foresee and prepare for. Those with solid contract administration and record-keeping throughout the project have a head start in any ensuing dispute. Joanne Strain is a partner at King & Wood Mallesons. September 2019 | MEConstructionNews.com

BURCIN KAPLANOGLU ORACLE CONSTRUCTION AND ENGINEERING

Innovation in action at the Oracle Construction & Engineering Innovation Lab

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here has been a perception that construction is lagging other industries in terms of digitisation, but that is changing as more and more builders embrace digital transformation to improve operations and stay competitive. Innovation is indeed alive and well in engineering and construction. Yes, paper-based processes and manual approaches to some activities still exist, but the technology innovations and venture investments in the industry are staggering and make this an exciting time to be involved. As the industry continues to battle against low productivity, resulting in projects running over budget and over time, an increasing number of organisations are turning to technology to transform both their business systems and their processes, as well as their approach to projects. We’re seeing a flow of investment coming into the industry and more constructionfocused start-ups looking to capitalise on this lucrative, solution-thirsty space. This combination is fuelling a rise in technology solutions that target specific challenges facing construction and engineering. This is all happening against a backdrop of transformative technological change at the macro level, with 5G on the horizon, the rise of wearables and a raft of new IoT devices offering greater and more sophisticated capabilities than ever before. When you add to the mix increasing access

to and importance of data – both managing and analysing it – it’s no surprise that this excitement is accompanied by confusion and trepidation. There’s just so much change that it’s difficult for decision-makers to truly know what to look into, and it’s even more challenging to understand what to adopt and why. Justifying budget spend on technology solutions becomes increasingly complex when you multiply the options available by a factor of 10 or even 100 – especially if they have no precedent and are completely different to anything experienced before. A DESTINATION FOR CONSTRUCTION TECHNOLOGY SOLUTIONS That was part of the thought process behind the Oracle Construction and Engineering Innovation Lab outside Chicago in the US. This unique facility is designed to accelerate efforts to help project- and asset-intensive organisations explore the latest technologies and drive digital transformation in a familiar and credible work-site environment. Input from several Oracle Construction and Engineering customers, as well as technology providers, shaped the vision for the Innovation Lab. The indoor/outdoor facility integrates sophisticated technology into a simulated job-site with girders, concrete-block walls, industrial fencing, gravel underfoot and a double-wide trailer housing cloud systems that display and analyse data transmitted from the solutions outside on the site. It enables project delivery professionals to interact with leading-edge solutions, including connected devices, autonomous vehicles, drones, augmented reality, visualisation and artificial intelligence tools, to see what’s possible to put to work right now. The Innovation Lab is a living showcase providing hands-on experiences within a simulated connected work-site, powerfully bringing to life the performance improvements

The success of the Innovation Lab is that it’s open to partners with many of the best and brightest construction technology solutions available”


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and data insights the growing number of technology innovations coming to market could deliver. This is especially important in the low-margin, risk-averse construction industry, because technology has to be proven in order to get used. The experiences provided at the Innovation Lab feature technologies that integrate with Oracle solutions to enable collaboration and unlock critical project intelligence to enhance outcomes and drive continuous improvement. SHARING IN INNOVATION – THE ECOSYSTEM The success of the Innovation Lab is that it’s open to partners with many of the best and brightest construction technology solutions available. This is something the industry hasn’t traditionally done very well, but the more construction and engineering businesses share best practices, data and work together, the more successful the whole industry will be. One of the partners at the Innovation Lab and a fascinating start-up story is Reconstruct, a visual data analytics platform for construction driving improved productivity through technology. Reconstruct provides a 3D timeline that tracks visual progress, labour productivity and predictive analytics that empower executives and their project teams to take actions to stay on time and on budget. Dr Mani Golparvar co-founded Reconstruct and developed a prototype at the University of Illinois with Dr Derek Hoiem, a computer vision expert colleague and now CTO of the business. Recognition for the solution grew, and soon they were able to explore funding, including assembling a business-driven team led by Silicon Valley veteran Zak MacRunnels as CEO. Today the platform enables web and mobile devices to seamlessly integrate with reality capture, BIM and schedule. It creates a user-friendly, accurate and predictive visual environment in which users can manage their projects. Imagine having a regular cadence of images of a construction project taken from every angle by 360-degree videos, self-managed drones or solar crane cameras. That’s hundreds of photos that upload and align automatically in real time over a mobile network. All of these visuals document the status of the project. The software can automatically compare the digital model of the project plans with every change at the

site and then provide a dashboard view of potential issues impacting the project. This sort of project intelligence could be the difference that helps ensure a project finishes on time and on budget. MacRunnels likens the solution to a time machine because it’s not only using the digital models to look into the project’s past, it also uses predictive analytics to assess the project’s future. Reconstruct is an excellent example of the level of innovation in the construction industry right now. With all of this technology available to the industry and the opportunity to see it in action, construction and engineering businesses are at the centre of a rapidly transforming space that has a bright future and is evolving all the time. An industry of technology laggards? Not anymore! Burcin Kaplanoglu is executive director and Innovation officer at Oracle Construction and Engineering.

ROB MATHESON CCS

The tech behind successful projects

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here’s no two ways about it: non-payment of contractors remains a key barrier to a healthy construction industry. In a recent construction industry survey gauging opinion on some of the risks and challenges facing the region, participants offered their views on subjects such as financial risk, performance bonds, VAT, environment, health and safety, and labour welfare. Asked about the biggest financial risk facing UAE construction companies, more than 60% of respondents highlighted the issue of late payments leading to cash flow problems as one of the most significant challenges. A

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further 14% cited eroding margins due to tough competition as a pertinent financial risk. MENA construction companies have endured a difficult few years, facing nearinsurmountable problems because of late or slow payment by clients in the public and private sectors. This situation is partially to blame for the string of poor results and business rescues we have seen among several construction groups. In the construction industry, a late payment to one supplier or by one customer can have a ripple effect throughout the value chain. Given how thin margins are in the industry, variances in cost and scheduling can compromise cash flow and profitability, and have a major impact on the viability of a project. Therefore, it is imperative that construction contractors use technology to ensure better real-time visibility into their businesses and projects. An integrated costing, project control and enterprise accounting suite designed for the industry can help them manage costs and risks across the entire project lifecycle. Such solutions make it possible to accurately compare actual costs with anticipated costs, allowing timely management interventions. Tried and tested solutions enable construction companies to stay on top of their procurement requirements, payments to sub-contractors and more. When paired with a robust forecasting solution, such solutions give construction companies a full analytical breakdown of every project, based on past performance and the potential impact of future events. With the right level of insight, a company can understand how project financing, payment terms and late payments may affect the profitability of a project. This gives it the ability to make informed business decisions about the projects it takes on, as well as the costs it should quote on, to ensure profitability. We are hopeful the environment for the construction industry is improving, but late payment is likely to remain a challenge for major groups and smaller sub-contractors alike. Equipped with the right technology solutions, however, construction companies can better manage the risks attached to long payment cycles, protecting their margins. In addition, implementing the right technology today will give a construction company the competitive edge it needs to endure challenging times and thrive during prosperous times. Rob Matheson is GM of CCS (Construction Computer Software) – Gulf. MEConstructionNews.com | September 2019


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ADVERTORIAL

Electrolux

Reinventing Experiences MIDDLE EAST

Electrolux celebrates a century of reinventing experiences in the home, and its 100th project award in the UAE within three years

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s a worldwide industry leader, Electrolux Group continues to reinvent taste, care and wellbeing experiences, delivering seven million appliances into the global construction business every year. 100 YEARS OF BETTER LIVING In 1908, Electrolux founder Axel Wenner-Gren spotted something in a store window that would shape the rest of his life: a cumbersome 20kg American electrical vacuum cleaner. He immediately understood that if he could make it lighter, he would create a product that could shape

living for the better. He envisioned a future where Electrolux would foster better living in homes all over the world, and fortunately his spirit of innovation persevered. This year, Electrolux is celebrating a century of reinventing experiences in the home to make them more effortless, empowering and enriching. Whether it’s an advanced induction hob that enables perfect cooking or a sophisticated washing machine for reduced wrinkling, Electrolux solutions are designed with the consumer in mind every step of the way. As the shift towards more sustainable practices in the industry emerges, Electrolux continues to position itself as a frontrunner in appliance sustainability, recognised for 12 consecutive years by the DOW Jones Sustainability Index. Electrolux engages in the United for Efficiency (U4E) partnership, led by the United Nations Environment Programme, to promote the use of efficient appliances in emerging markets through energy labelling, incentive programmes and end-of life treatment of redundant appliances. 50 YEARS OF CREATING OUTSTANDING EXPERIENCES

September 2019 | MEConstructionNews.com

IN THE PROJECT BUSINESS The ever-changing construction industry across the GCC offers endless possibilities for architects, contractors, designers and suppliers. As a region that has experienced unprecedented growth over the past 30 years, the influx of projects, from luxury hotels to high-rise residential towers, has been exceptionally rapid and vast. With over 50 years of experience successfully delivering iconic projects in 150 markets, Electrolux has emerged as the preferred partner for projects in the region, giving it the opportunity to work with some of the largest property developers in the UAE, such as Emaar, Meraas, Damac and Danube Properties.

Our in-depth knowledge and long experience in the project business mean that we have a genuine understanding of the market”

From entry-level appliances with cutting-edge technology to grande cuisine products designed for professional use, Electrolux provides a complete offering to fit any budget through its wide variety of brands – Electrolux, AEG and Zanussi. Lorenzo Milani, GM, Electrolux Major Appliance, MEA, states, ‘’We know that supplying and working with new developments in contracts and construction requires more than great products and a strong brand. Our in-depth knowledge and long experience in the project business mean that we have a genuine understanding of the market, enabling us to provide only the best, helping our clients to deliver the best to their consumers.” The Electrolux group has successfully delivered and installed products for several renowned projects. The elegant Armani Hotel residences and The Address Fountain View apartments were fitted out with kitchen appliances from iconic premium German brand AEG. WOW Hotel and Apartments and the Dreamz villa community were equipped with sophisticated Swedish Electrolux brand products. In addition, Italian Zanussi brand appliances were installed in The Address Hotel Downtown and City Walk luxury residences.


Swedish thinking. Better living.

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Our dedication to providing best-in-class product, brand and service experiences makes Electrolux the perfect partner for your project. Visit us our stand at the Cityscape Exhibition, located at H4.C30.

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TENDERS

Middle East tenders UAE CULTURAL & COMMERCIAL

Makers District The Artery BUDGET $300 million TERRITORY UAE CLIENT IMKAN Properties DESCRIPTION The project’s scope of work consists of a 7-storey multi-use building which spans a 26,000sqm area that will offer artists a place to create and showcase their work. The Artery is a domed structure which has a central atrium that will serve as a performance centre. The building has an integrated makers space with a parking garage. The project is located on Al Reem Island, Abu Dhabi. PROJECT PERIOD 2017 - 2022 ENERGY

Al Dhafra Independent Power Plant BUDGET $1.6 billion TERRITORY UAE CLIENT Abu Dhabi Water & Electricity Authority DESCRIPTION The project’s scope of work involves the construction of a 2,000MW photovoltaic (PV) solar plant located at Al Dhafra, Abu Dhabi. It also includes installation of solar panels of PV modules, construction of control rooms, the operating building and associated facilities. The

RETAIL

project will lift Abu Dhabi’s solar power capacity to 3,200MW. PROJECT PERIOD 2018 - 2023

Century Corner Complex

HOSPITALITY & RESIDENTIAL

Dubawi Tower BUDGET $415 million TERRITORY UAE CLIENT Northacre DESCRIPTION The project’s scope of work consists of an 84-storey residential and hotel tower on Sheikh Zayed Road, Dubai. The project offers hotel rooms and serviced apartments sharing amenities with the hotel, as well as apartment units, penthouses, car park area, landscape and infrastructure works. PROJECT PERIOD 2017 - 2024 RETAIL

City Centre Al Jazira BUDGET $382 million TERRITORY UAE CLIENT Al Jazira Sports & Cultural Club, Majid Al Futtaim Holding DESCRIPTION The project’s scope of work consists of a two-storey shopping mall between Airport Road and Muroor Road in Abu

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Dhabi. The mall comprises 153 retail and service stores across its 80,500sqm total leasable area. PROJECT PERIOD 2017 - 2022

BUDGET $50 million TERRITORY Saudi Arabia CLIENT RAKAA Holding Company DESCRIPTION The project’s scope of work consists of a mixed-use complex located at King Fahd Street, Riyadh. The complex includes 12 cinemas, a bowling hall, entertainment centre, hypermarket, restaurants and cafés. PROJECT PERIOD 2018 - 2022 HOSPITALITY

Garden Inn Hotel & Embassy Suites

SAUDI ARABIA INFRASTRUCTURE

Az Zulfi Flood Water Drainage BUDGET $82 million TERRITORY Saudi Arabia CLIENT Al Riyadh Municipality DESCRIPTION The project’s scope of work involves the implementation of flood and rainwater drainage network at Az Zulfi, Riyadh, Saudi Arabia. PROJECT PERIOD 2018 - 2022

BUDGET $250 million TERRITORY Saudi Arabia CLIENT Umm Al Qura for Development & Construction Company DESCRIPTION The project’s scope of work consists of a three-tower hotel on King Abdul Aziz Road (KAAR) Development, Makkah, Saudi Arabia. The hotel features a restaurant, a business centre, a multi-function room and a boardroom. The towers are designed specifically to cater for the demands of pilgrims in Makkah. PROJECT PERIOD 2019 - 2021 RESIDENTIAL

Arar Armed Forces Housing Complex BUDGET $110 million TERRITORY Saudi Arabia CLIENT Saudi Arabia Ministry of Defence & Aviation DESCRIPTION The project’s scope of work involves the construction of armed forces housing units in Arar, Northern Borders, Saudi Arabia. PROJECT PERIOD 2019 - 2023

MEConstructionNews.com | September 2019


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TENDERS

KUWAIT ENERGY

Dabdaba Photovoltaic Power Plant BUDGET $1.65 billion TERRITORY Kuwait CLIENT Kuwait National Petroleum Company DESCRIPTION The project’s scope of work involves the construction of a 1,500MW photovoltaic solar plant at Al Shegaya Renewable Energy Park, 100km west of Kuwait City. The project includes the design of PV plants; procurement of all components, including wiring, PV modules, inverters and control system; construction; performance testing; commissioning; operating and maintaining the plants for the period defined by KNPC; and training of staff for operating the plants upon completion of the operation and maintenance contract period. PROJECT PERIOD 2016 - 2021 MIXED USE

Southwest Al Jahra Labour City

in South Al Jahra, along the Sixth Ring Road. It will also include public utilities such as a mosque, a police station, a fire station, a clinic, a post office, etc. There will also be commercial establishments such as supermarkets, a sports centre, restaurants, a bakery, etc. It will also include labour accommodation, landscape and playgrounds. The project aims to provide housing for expats with low incomes in peace with good environmental and service standards that include all security, health, entertainment and social facilities for employment. PROJECT PERIOD 2011 - 2022 INDUSTRIAL

Al Jahra Central Workshops & Piping Yards BUDGET $63 million TERRITORY Kuwait CLIENT Kuwait Oil Company DESCRIPTION The project’s scope of work involves the construction and maintenance of central workshops and piping yards in Al Jahra, North Kuwait. PROJECT PERIOD 2017 - 2021

BUDGET $125 million TERRITORY Kuwait CLIENT Kuwait Municipality DESCRIPTION The project’s scope of work involves development of the city for expatriate workers in Al-Jahra Governorate, Kuwait. The city will accommodate 20,000 workers. The project involves residential areas, commercial and neighbourhood services, community services, and municipal and utilities services. The project will cover an area of 1,015,000sqm

September 2019 | MEConstructionNews.com

CULTURAL

Sabah Al Ahmad City Cultural Centre BUDGET $100 million TERRITORY Kuwait CLIENT Amiri Diwan, Public Authority for Housing Welfare (PAHW) DESCRIPTION The project’s scope of work consists of a cultural centre in Sabah Al-Ahmad City, Kuwait. The cultural centre is designed with a distinctive profile of a dhow, a sailing ship used for many generations as Kuwait’s primary means of export. The project includes 2 theatres, 700 seats and 250 seats, for all sorts of theatrical productions; a 200-seat conference centre;

a 250 seat recital hall for music performances; a children’s culture centre with many cultural activities for children, including a 150-seat theatre; an amphitheatre for outside performances; a museum; an art gallery for hosting art exhibitions; a library; a book exhibition for hosting book fairs; an oasis: a green air-conditioned large space for public gathering, a cultural café and other cultural activities. The project is part of the Sabah Al Ahmed City development. PROJECT PERIOD 2012 - 2021

OMAN HOSPITALITY

The Residences at Mandarin Oriental BUDGET $71 million TERRITORY Oman CLIENT Eagle Hills Properties DESCRIPTION The project’s scope of work consists of a hotel building located along the luxurious Shatti Al Qurum in Muscat, Oman. The hotel comprises 150 guest rooms and suites, in addition to five restaurants, a swimming pool, business units and other leisure facilities. The project also comprises 155 residences, which will feature some of the most select private apartments in the capital, ranging from 75 to 260sqm. The development also features a state-of-the-art spa at Mandarin Oriental, designed around a Persian hammam, and an outdoor swimming pool set amid a vast outdoor landscaped area for both kids and adults, within reach of a sandy beach. The residential units on offer include one-, two- and three-


TENDERS

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RESIDENTIAL

bedroom luxury apartments and two penthouses comprising four bedrooms each. Additional recreational amenities exclusive for residents include a swimming pool with a kids’ pool, a common residents’ lounge, a multi-purpose room, a children’s play room and a games room, as well as a private residential courtyard. PROJECT PERIOD 2016 - 2022

Janabiyah Villa Complex BUDGET $150 million TERRITORY Bahrain CLIENT Executive Office of the Prime Minister DESCRIPTION The project’s scope of work consists of 42 residential villas in Janabiyah, Bahrain. PROJECT PERIOD 2018 - 2023

INFRASTRUCTURE

Dibba – Lima – Khasab Carriageway (Phase 2) BUDGET $500 million TERRITORY Oman CLIENT Oman Ministry of Transport & Communications DESCRIPTION The project’s scope of work involves the construction of a 65km carriageway at Dibba, Daba Al Bayah, Musandam, Oman. The project commences near Al Khalidiya, at kilometre 20+600. It closely follows the eastern coastline of the peninsula, passing near the town of Lima at approximately kilometre 40, and ends at approximate kilometre 86 near the town of Daba. PROJECT PERIOD 2010 - 2022 INFRASTRUCTURE

Adam to Thumrait Road Dualisation (Part 3) BUDGET $202 million TERRITORY Oman CLIENT Oman Ministry of Transport & Communications DESCRIPTION The project’s scope of work involves the dualisation of the Adam to Thumrait Road in Adam, Al Dakhiliyah, Oman.

RECREATIONAL

The project stretches from the wilayat of Haima to Muqshin, with a length of 132.5km. The project includes the construction of 16 at-grade U-turns, service roads, 4 rest areas, 2 weigh stations, 21 lay-bys, 8 emergency median openings and 22 ROP parking, approximately. PROJECT PERIOD 2011 - 2023 HOSPITALITY

Al Azaiba Movenpick Hotel & Apartments BUDGET $125 million TERRITORY Oman CLIENT Civil Service Employees Pension Fund (CSEPF) DESCRIPTION The project’s scope of work consists of a 10-storey

retail, commercial and hotel building in Al Azaiba, Oman. Basements will be allotted to car parking, the ground will host retail outlets, 4 floors will be commercial and 5 floors will be serviced and hotel apartments. The hotel will have a total of 247 rooms and suites, 50 deluxe apartments, meeting and conference rooms, restaurants and a health club. PROJECT PERIOD 2016 - 2020

BAHRAIN RESIDENTIAL

Al Madina Al Shamaliya Development (Plot No. 17 & 18)

Bahrain Expo City – Bahrain International Exhibition & Convention Centre (BIEC) BUDGET $300 million TERRITORY Bahrain CLIENT Bahrain Exhibition & Convention Authority DESCRIPTION The project’s scope of work consists of an exhibition centre near the F1 circuit in Sakhir, Southern Governorate. The facility will accommodate over 5,000 people once complete. The project comprises 10 exhibition halls with a total area of 95,000sqm, and a 4,500sqm conference hall that can be divided into three separate high-tech halls. PROJECT PERIOD 2016 - 2021 RESIDENTIAL

BUDGET $90 million TERRITORY Bahrain CLIENT Bahrain Ministry of Housing DESCRIPTION The project’s scope of work involves the construction and maintenance of 720 residential apartment units at Madinat Salman (formerly Northern Town) off the northern coast of Bahrain. PROJECT PERIOD 2018 - 2021

Durrat Al Bahrain Residential Islands BUDGET $55 million TERRITORY Bahrain CLIENT Durrat Khaliji Bahrain DESCRIPTION The project’s scope of work involves the construction of 5 and 6 residential islands in Durrat Al Bahrain, Bahrain PROJECT PERIOD 2018 - 2021

MEConstructionNews.com | September 2019


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PROGRESS REPORT

Final update

Two districts at Deyaar’s Midtown development near completion Developer says both projects will be ready for handover later this year

D

eyaar, a Dubai-based property developer and real estate service provider, has said that two districts within its Midtown community development are nearing completion. Afnan (seven buildings and 659 apartments) is now more than 96% completed,

while Dania (six buildings and 579 apartments) has hit 87% completion. The family-friendly community has a construction area of more than 464,515sqm in Dubai Production City. It comprises 26 buildings across six districts, including Afnan and Dania. Both will be ready for handover later this year. In addition to providing easy access to local amenities, Midtown also has strong transport links to Dubai International Airport and Al Maktoum International Airport, as well as the Expo 2020 Dubai site. Deyaar also said that its 18-storey residential building at the Bella Rose development is currently at 28%

September 2019 | MEConstructionNews.com

464,515 sqm construction area of Midtown community

Family-friendly The community comprises of 26 buildings across six districts, with a range of facilities for the whole family, the developer says.

completion. The Al Barsha South residential project combines living spaces with an ideal location. Two schools and two hospitals are also near the development, it added. Furthermore, the developer said that project work has been completed on a four-star hotel and serviced apartment project, Millennium Al Barsha Hotel, with the project opening in August 2019. The seven-storey property has a total of 408 units – 109 serviced apartments and 299 hotel rooms. Listed on the Dubai Financial Market, Deyaar is one of Dubai’s leading developers, with real estate ventures spanning key growth corridors and prime locations within the emirate.


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