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SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT

Construction An ITP Business Publication

Licensed by International Media Production Zone

WEEK

CONSTRUCTIONWEEKONLINE.COM

DEC 26–JAN 8, 2010 [302]

NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST

INSIDE NEWS Saudi Arabia issues a record breaking budget for 2010 PAGE 9

FACE TO FACE School building could be a goldmine for UAE contractors PAGE 12

INDIA INITIATIVE Contractors from the sub-continent make their mark in the GCC PAGE 19

RACE TO THE

FINISH

CW GETS A GRANDSTAND VIEW OF MEYDAN AS IT READIES FOR THE 2010 RACE SEASON

CITY FOCUS T latest news, The projects and tenders p from Doha, Qatar fr PAGE 30 P


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CONTENTS DECEMBER 26, 2009-JANUARY 1, 2010 | ISSUE 302 4

13

FEATURES 14 SITE VISIT Could a new racetrack and grandstand be just what Dubai needs?

19 SPECIAL REPORT CW looks at which Indian firms are proving to be success stories in the Middle East and what the future holds for them.

DIRECTORY 24 TENDERS 25 PROJECTS 26 SPECIALIST SERVICES

10

32 14

REGULARS 2 ONLINE 4 MAIL

FRONT

11 NEWS IN BRIEF

9 SAUDI ARABIA SETS RECORD BUDGET

Highlights of the week.

BACK

Saudi has unveiled its largest budget in history, projecting expenditures of US $144 billion and revenues at $125 billion.

12 FACE TO FACE

30 CITY UPDATE

CW talks to two people involved in the development of educational establishments.

The latest news and projects from Doha, Qatar.

10 FATAL FALL PROMPTS INDUSTRY WARNING

13 COMMENT

32 DIALOGUE

An industry expert has warned about the dangers of using fall-protection hoists incorrectly, following a fatal accident.

Alan England says mediation could be the region’s preferred form of dispute resolution in the new year.

Rubber World Industries managing director Muzammil Shaikhani discusses his company’s plans to upsize and how it will reach its growth targets.

DECEMBER 26, 2009–JANUARY 8, 2010 CONSTRUCTION WEEK

1


ONLINE

www.ConstructionWEEKonline.com

CHINA PHOTOS/GETTY IMAGES

MOST POPULAR CONSTRUCTION STARTS ON WORLD’S BIGGEST SEA BRIDGE CONSTRUCTION MAGNATE FIFTH RICHEST ARAB CONTRACTORS TO ENTER MASSIVE MERGER IN KSA CONTRACTORS SAY $10 BILLION WILL SEE INDUSTRY BREATHE

HAVE YOUR SAY WHAT DO YOU THINK 2010 WILL HOLD FOR THE INDUSTRY?

IN PICTURES: CONSTRUCTION STARTS ON WORLD’S BIGGEST SEA BRIDGE Not happy with just one world-record holder, China has started construction on what will be the world’s longest sea bridge, just 18 months after cutting the ribbon on the current record holder, the Hangzhou Bay Bridge (pictured). Work began on 15 December and is scheduled for completion in 2015. Current cost estimates for the project are a whopping 39 billion dirham. The bridge will be a Y-shaped structure, covering 50km, around 35km of which will be over the sea. The Hangzhou Bay Bridge is just over 35km in length and was designed to cope with strong tides and the severe seasonal storms that part of China experiences. For more images visit www.ConstructionWeekOnline.com

What are you looking forward to in terms of projects – and what are you worried about?

JOBS OF THE WEEK Branch Manager, Abu Dhabi, United Arab Emirates Senior Designer Hospitality, Dubai, United Arab Emirates CAD Operator Interior Design, Dubai, United Arab Emirates

ONLINE POLL WHAT’S YOUR MAIN AIM FOR 2010?

29.6% Survive

FEATURES FM

FM

HARNESSING THE ELEMENTS Bob Knott, director of golf operations for Jumeirah Golf Estates, talks about designing, building and maintaining golf courses in the Middle East.

TIPS TO BEAT THE RECESSION fmME investigates how it’s possible to achieve success during an economic downturn.

2

CW

MEP

ROYAL INSIGHT Sheikh Maktoum Hasher Maktoum Al Maktoum talks about Dubai World’s restructuring and other pressing issues.

MEP NOUVEAU Rotary Humm contracts manager David Gamble tells MEP Middle East that the contract, which is currently in its very early stages, is valued at US$54.5 million.

CONSTRUCTION WEEK DECEMBER 26, 2009–JANUARY 8, 2010

27.8% 25.9% 13.0% 3.7%

Get paid for the work we’ve done in 2009

Tender for more work

Upsize

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TO VOTE IN THIS WEEK’S SPOT POLL GO TO www.ConstructionWEEKonline.com


MAIL various energy saving and water conservation methods needs to be made easily accessible and available to every person. The knowledge needs to be given in an open platform and not in a seminar in a five-star hotel. Our ministers and government need to be taught first, our bureaucrats need to be made to understand and once the system is corrected, the rest is very easy to operate. It is now or never.... AVINASH

RE: CONTRACTORS SAY $10BN WILL SEE INDUSTRY BREATHE

RE: FATAL FALL PROMPTS INDUSTRY WARNING On the details given it, would appear more of a management failing; why was a carpenter allowed on a scaffold that was being dismantled? If the scaffold was not being dismantled, then generally a well designed and installed scaffold does not require the user to wear a harness. These are generally the last result in terms of fall arrest, so the quality of scaffold may have been an issue and this is a massive problem in a number of countries. ANDY

I am sure that contractors in Dubai are firmly following safety codes, but most contractors in Abu Dhabi are not, especially when constructing four storey buildings, or smaller. TAMA

RE: WATER SCARCITY DRIVES GREEN BUILDING The subject needs to be simplified, in common language, which the common man can understand and react to. The message of

This announcement may have some investors / contractors feeling slightly more comfortable, as a large chunk of the debt can be wiped off, but where is the money going to come from to instigate a continuation of many of the current projects on hold? Band aid on a gaping wound if you ask me. SHANE

the above, I think this poor consortium has no chance. You are talking about $2.5 billion from a government which is already in debt. The reality is the RTA belongs to Dubai Municipality, which is a Dubai government body. I think the new law that came out a few days back, asking all government entities to return any surplus monies to the government treasury, is one way of protecting themselves against claims. The RTA will have no cash left and the consortium will need to deal with the government directly. KAL

RE: MATERIAL PRICE INCREASES EXPECTED IN 2010 During this time, when demand is lower, why would any supplier increase the freight cost? For argument’s sake, if we agree that a container from China will cost $1500, then there are other suppliers in the world who will offer the same service cheaper. GS

RE: EXCLUSIVE: US $2.5 BILLION CLAIM OVER DUBAI METRO Claims are only valid if the contractor had initially made a request for payment at the time of delay, or variation, which was at the time agreed by the RTA. If the consortium decides to backdate/create variations to improve his cashflow, then the RTA will not pay. Claims are only valid if originally discussed and agreed at the time. Notwithstanding

Is this just an excuse to increase prices? Freight rate increases would affect all items, not just building materials. Let’s check it out with shipping companies. PREMCHAND

And what is that ‘freight rate hike’ exactly? The oil price is steady and market demand is still suppressed so why would transportation costs go up? Please explain this to me. BOB D

WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email editor@ConstructionWeekOnline.com. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest Middle East business articles. The opinions expressed in this section are of particular individuals and are in no way a reflection of the publisher’s views.

4

CONSTRUCTION WEEK DECEMBER 26, 2009–JANUARY 8, 2010


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10

News highlights

11

Face to face

12

Comment

13 GEORGE DIPIN/ITP IMAGES

FRONT

Fatal fall prompts industry warning

MASSIVE SPENDING PROJECTED BY SAUDI ARABIAN GOVERNMENT AS IT LOOKS TO CONTINUE DEVELOPMENT OF ASSORTED INFRASTRUCTURE.

SAUDI ARABIA SETS RECORD US $144 BILLION BUDGET By Benjamin Millington

SECOND CONSECUTIVE ANNUAL BUDGET DEFICIT FOR THE KINGDOM Saudi Arabia has unveiled the largest budget in its history for the year 2010, projecting expenditures at US $144 billion (SR540 billion) and revenues at $125 billion. The budget expenditure has increased by 14% compared to 2009 and has a deficit of $18.6 billion. It is the second consecutive annual budget deficit for the Kingdom. “We’ll channel our financial resources to areas which require more spending in order to boost economic growth and development, make our economy more attractive for investment, and create more jobs for Saudis,” said Saudi King Abdullah bin Abdul Aziz Al Saud, in his address to the nation regarding the new budget. Arab News reported that $36.5 billion was allocated towards new projects in education and training, which covers 1200 schools, new universities in Dammam, Al Kharj,

Majmaa and Shaqra, the completion of campuses of existing universities and the establishment of new technical colleges and vocational institutes. Also, $16.3 billion was allocated for health and social development, including eight new hospitals and the expansion of 19 existing hospitals. Allocations for the water, industrial and agricultural sector amounted to $12.3 billion, which included funds for infrastructure projects required by mineral industries in Ras Al Zour. The municipal service sector will receive $5.9 billion, and the transport and telecom sector $6.4 billion. Last year, the Saudi Arabian finance ministry said in a statement that the kingdom would witness a budget deficit of $16 billion for 2009, as it raised expenditures to, what was then a record, $131.4 billion.

The Saudi economy grew by about 1% this year, compared with about 4.3% in 2008, according to Banque Saudi Fransi. In the private sector, growth slowed to 2.5%, compared with 4.7% in 2008, despite millions of dollars of projects being cancelled or deferred in view of the tight credit conditions, the bank said. Oil prices have fluctuated wildly in the last two years, falling from highs of $147 in July of 2008 to $32 a barrel in December 2008, while gradually climbing back to mid-$70s this year. This year, oil revenues fell by 41% while GDP contracted by 21%. Saudi Arabia’s budget is the largest in the GCC and is more than three times the total fiscal spending of the UAE. The government has said it will continue to increase spending in support of its development programme in the next year.

DECEMBER 26, 2009–JANUARY8, 2010 CONSTRUCTION WEEK

9


FRONT CONSTRUCTION MAGNATE FIFTH RICHEST ARAB By Stuart Matthews

UNSAFE WORK PRACTICES CONTRIBUTED TO WORKER’S DEATH (PICTURE FOR ILLUSTRATION ONLY).

FATAL FALL PROMPTS INDUSTRY WARNING By Greg Whitaker An industry expert has warned about the dangers of using fall-protection hoists incorrectly following a fatal accident. The incident happened when a carpenter fell five meters from a scaffolding tower. Although he was wearing a harness, it was not fixed to a solid object and, landing on solid concrete, the man received multiple injuries and later died in hospital. The secretary of Build Safe UAE, Elias McGrath said: “The wearer needs to be trained to make sure he is using the PPE [personal protective equipment] correctly – otherwise it is just there for decoration.”

He added that there have been a number of accidents of this type in the past – and even cases where workers in confined spaces have got themselves tangled in their own harnesses. McGrath added that the grade of equipment also had its part to play: “You have to look for the certification mark and each organisation needs its quality control checks – especially when it comes to helmets. “If you don’t have a quality in the plastic, it really isn’t going to make a difference. This is one example where quality plays a really important role” he said.

Nasser Al Rashid, a construction magnate, has been named as the world’s fifth richest Arab in the Arabian Business Rich List 2009. Al Rashid has an estimated net worth of US $8 billion (AED 29 billion) and is the highest placed construction industry figure on the list. His principal construction interest is Rashid Engineering, a Riyadh-based consulting engineering firm. Rashid Engineering has worked on a number of major government construction projects for Saudi Arabia. The first of these projects was the Al-Khalidiah building at Khazzan Street in Riyadh, which belongs to the sons of the late King Khalid. The company’s first government project was the Al-Massara Hotel at Taif. Al Rashid has garnered a reputation for philanthropic work, financing a mix of hospitals, orphanages and infrastructure projects, as well as supporting a number of medical research causes. He also owns one of the largest private yachts in the world, the Lady Moura, which is 108m in length.

MATERIAL PRICE INCREASES EXPECTED AT START OF NEXT YEAR By Stuart Matthews Material prices, which have been relatively stable for the last six months, are expected to rise at the start of 2010, according to Rizwan Sajan, chairman of Danube Building Materials. Sajan identifies freight rate rises for imports from China as a key cause. “The freight rate from China, which was previously at US $600-700, is currently at $1000 per container,” he said. “There is a big possibility of this climbing to $1500 by year end, which also means that there is an increased demand for the products.

10

CONSTRUCTION WEEK DECEMBER 26, 2009–JANUARY 8, 2010

“Prices have been more or less stable for the last six months, registering a variation of not more than plus or minus 5-10%. For the beginning of 2010, we are expecting some prices to go up, especially for wood as a result of the increase in the freight rates.” Sajan added that there is no established trend covering all building materials. “As far as wood is concerned, price indicators are turned upwards for the beginning of 2010 due to freight rate hike,” he said. “On the other hand, steel bar prices are dropping due to lack of demand and a correction in the prices of scrap and billets.”


FRONT HIGHLIGHTS UAE

WORK TO START ON HEART OF EUROPE The European Kleindienst Group will commence development on its Heart of Europe project – a 12-site luxury vacation destination on Nakheel’s The World project, off the coast of Dubai, at the beginning of 2010. The development will take in six of The World’s islands and construction will start on the island of Germany, with a first phase comprising 20 villas, designed by Spanish firm A-cero. UAE

PALM JEBEL ALI WORK TO BE AWARDED The enabling contracts for three projects on Palm Jebel Ali are set to be awarded

in two month’s time. Work is expected to begin on Nathalie Tower, Blue Moon Tower and Noah’s Arc Tower immediately after the contract is awarded. “We are currently in negotiations with Sharaf Foundations and Geo Foundation,” said Worldwide Project Management managing director Abdel Wahab Talaat. Kuwait

$62BN CONSTRUCTION SPEND EXPECTED Kuwait will launch around US $62bn worth of new construction projects in 2010, according to the state minister for housing affairs Sheikh Ahmad Al-Fahad Al-Sabah. “2010 will be the year of projects by means of signing housing projects in

the new Sabah Al-Ahmad, Jaber Al-Ahmad and Saad AlAbdullah cities, together with other housing areas,” he said. The cost of housing projects to be carried out next year will be in the vicinity of $2.1 billion and the government is eager to allow the private sector to get involved. Saudi Arabia

JV TO BUILD US $11BN ALUMINIUM PLANT State-run Saudi Arabian Mining Co (Maaden) and US aluminium giant Alcoa have agreed to build a $10.8 billion aluminium complex in the industrial zone of Ras As Zawr. The companies have formed a JV to set up a 1.8 million tonne-per-year refinery, a 740,000 tonneper-year smelter, a bauxite

mine with an annual capacity of 4 million tonnes and a rolling mill with a capacity of up to 460,000 tonnes. Saudi Arabia

CONTRACTORS TO ENTER MASSIVE MERGER Eleven contracting firms are set to merge to form the Saudi Consolidated Contracting Company, worth US $1 billion. Nonlisted companies operating in energy, construction, real estate and maintenance work will join together to form the entity in three years time, said chief executive Jassim Al Rumaihi. The final number of contracting firms will be agreed by July next year but, for now, consultants Ernst and Young are working on a financial plan.

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FACE-TO-FACE SCHOOL DAYS

IAN APSLEY

MICHAEL CORB

Broadway Malyan, Director

Burt Hill, Senior Associate

CW TALKS TO TWO PEOPLE INVOLVED IN THE DEVELOPMENT OF EDUCATIONAL ESTABLISHMENTS HOW ARE YOUR EDUCATION PROJECTS PROGRESSING? We have been working with the Abu Dhabi Education Council (Adec) since around June this year. Construction is scheduled to start in June 2010. From the first phase of the model schools, of which there are 18, we are delivering nine.

Currently, we are in the concept design phase for a UK public school located in Abu Dhabi. We have two additional designs that are under construction in Dubai. However, Burt Hill is not responsible for the post contract services.

HOW HIGH IS THE DEMAND FOR EDUCATIONAL ESTABLISHMENTS IN THE MIDDLE EAST? We get a reasonable amount of enquiries from the private market to build local and international schools to support communities. Also, the education council plans to start building 100 schools over the next three years. Consultants who we share information with also have received a reasonable amount of enquiries.

Education projects continue to be in high demand throughout the MENA region. With many communities coming on line, we are now seeing the need to provide community schools. Additionally, the Abu Dhabi Education Council (ADEC) has been very forward thinking and aggressive in its plans to provide schools for Abu Dhabi.

WHAT MAKES BUILDING A SCHOOL DIFFERENT FROM ANY OTHER PROJECT? I think you need to have the ability to think like a child and imagine how they would want to experience things. From doing so, you should be able to think about how your building should be designed. It is all about using our experience from other markets and making sure we make the right choices.

Abu Dhabi, Saudi Arabia, Libya and Qatar hold a lot of growth potential. Abu Dhabi has demand due to its expanding expatriate population and ADEC’s goals for 21st century schools. Also, Saudi Arabia and Libya’s massive infrastructure and residential plans will require the necessary educational facilities to support communities.

HAS THE DOWNTURN HINDERED ANY OF YOUR PLANS? Not really. From a contractor’s point of view, it has probably put pressure on build costs and the market is very, very competitive at the moment, which should mean that clients get better value for money.

Schools need to be highly responsive to how each person learns. Burt Hill does extensive research into the latest theories on learning and pedagogy, which influences how we approach each project. In each design, the learner needs to be considered first.

ARE YOU IMPLEMENTING ANY SUSTAINABLE INITIATIVES IN YOUR SCHOOL PROJECTS? Yes. They are all designed to comply with the three pearl Estidama rating and there is another private school that we are currently working on in Abu Dhabi, which is part of the Estidama pilot scheme.

At Burt Hill, sustainable design is integrated into every project we do. Water conservation and recycling, thermally responsive building envelopes, controlled natural lighting and endemic landscaping strategies lie at the core of our regional sustainable design strategy.

WHAT ARE YOUR HOPES FOR 2010? I hope that we complete our programme for Adec successfully and that we that we are engaged to start the next phase of its project.

12

CONSTRUCTION WEEK DECEMBER 26, 2009–JANUARY 8, 2010

We are exceptionally optimistic for 2010. Due to over 30 years of experience in K12 and higher education design, we feel we are uniquely positioned to offer the value clients will demand in the coming year.


COMMENT > For the latest news and comments log on to www.ConstructionWEEKonline.com/comment

Dubai readies for mediation ME RICS REPRESENTATIVE, ALAN ENGLAND SAYS MEDIATION COULD BE THE REGION’S PREFERRED FORM OF DISPUTE RESOLUTION IN THE NEW YEAR

In November 2008, Rics formalised a relationship with Rera to assist Dubai in setting up dispute resolution procedures in property disputes. As part of its support for the establishment of the new Dubai Mediation Centre, Rics Dispute Resolution Services is committed to providing regular accredited mediation training in the Gulf, through its UK-based trainers. The second of these courses was run in Dubai in December 2009. By this means, a pool of specialist Rics Accredited Mediators will be available to help deliver the service. The Mediation Centre could have a huge impact in cost and time saving and the preservation of long term commercial relationships, in what is likely to be a busy sector for the foreseeable future. This is a direct reflection of both the real estate market in Dubai and the resultant growth in the number of disputes. Any economic downturn acts as a driver for disputes, and these normally form the basis of a sharp surge in litigation and arbitration. This has led to increased levels of interest and use of arbitration in the UAE, particularly in the construction sector. The new Dubai Mediation Centre is a welcome proactive response by real estate regulatory bodies, with the intention for the participants to agree the settlement of real estate disputes. Mediation is a voluntary, non-binding, and private dispute resolution process in which a trained neutral person – the mediator - helps parties to a dispute, or other impasse between them, try to reach a negotiated settlement for themselves, with or without the assistance of their own professional advisers. It is both Shari’a compliant in its philosophy and well regarded as an established international dispute resolution process. In most cases mediation cannot take place unless the parties agree to enter the process, although the intention of the new Dubai law is that parties will have to engage in it before they can enter the Property Court.

Mediation is also possible with the participation of all parties, and will cease if one party leaves the process. Mediation is also truly voluntary, as entering the process does not bind the parties to reach settlement. Settlement can only come about on the authority of the parties concerned, as the mediator has no authority to make a binding determination. If a settlement is reached, the agreed terms when reduced to writing, will form part of an enforceable contract. The entire process is confidential to the extent local law permits. This means that parties can conduct themselves in the mediation, for example by disclosing information, expressing views, making suggestions or offering concessions, relatively safe in the knowledge that this will not preclude them arguing a different position should the matter proceed to trial. The role of the mediator and the confidential nature of mediation negotiations help parties to focus on, and realise their true needs and interests, which may be far removed from what a court, an adjudicator or an arbitrator might ordinarily have jurisdiction to order. Mediation generally provides both client and professional satisfaction in terms of speed, cost, flexibility of outcome and confidentiality. Mediation practitioners recognise that a negotiated outcome to a dispute is usually more satisfying, more workable, more flexible and more durable than an order imposed by a court or other tribunal. In nearly all jurisdictions the success of mediation comes with educating both professionals engaged in dispute processing – lawyers and construction professionals – and their clients, of both the process and its benefits. Thus those intending to mediate and appear for parties in the new Mediation Centre will require proper training and experience for clients to reap the true benefit.

“MEDIATION GENERALLY PROVIDES BOTH CLIENT AND PROFESSIONAL SATISFACTION IN TERMS OF SPEED, COST, FLEXIBILITY OF OUTCOME AND CONFIDENTIALITY.”

Alan England is Rics director, Menea (Middle East Near east and Africa). He began his career at the UK’s Wimpey homes, has been working throughout the gulf for the last 10 years. Alan opened the Menea regional office, based in Dubai, in 2007.

The opinions expressed in this column are of the author and not of the publisher.

DECEMBER 26, 2009–JANUARY8, 2010 CONSTRUCTION WEEK

13


A NEW FAVOURITE

WORTH BACKING COULD DUBAI’S NEW RACETRACK AND GRANDSTAND, READY IN TIME FOR THE 2010 SEASON, BE JUST THE TONIC FOR AN EMIRATE UNDER FIRE? By Matt Warnock; Photos by Aziz Shah

THE GRANDSTAND AND RACETRACKS ARE JUST THE FIRST OF FOUR DEVELOPMENTS WITHIN THE MEYDAN CITY PROJECT.

F

orget bungee jumping, sand boarding or paintballing; you can leave fishing, sudoku and social networking out of the equation too…surely, right now, Dubai-bashing must qualify as the world’s favourite pastime. Tom Cruise, Angelina Jolie and Madonna together could only dream about the sort of column inches that ruminations on the emirate’s future are receiving at the moment. Among all that doom and gloom, it’s easy to forget the magnificent feats that Dubai has actually achieved. Even in the next few months, the Burj Dubai – the world’s tallest building by quite some distance – will throw open its doors, as will the rest of the stations on the Metro’s Red Line. Flying somewhat under the radar so far, however, has been the Meydan City project that will ensure top class horse racing heads to Dubai in 2010 and for many years to come.

14

“Meydan is the Arabic word for ‘meeting place’. Meydan is going to be the newest and most important integrated business and lifestyle destination for the UAE and for the world,” explains Meydan commercial director Mohammed Abdul Nasser Al Khayat. The enormous 18.6 million m² project consists of four separate areas. “Horizons will be 80% residential and 20% offices,” continues Khayat. “Metropolis is to be a business hub and Gadolfin Parks will be a waterfront district.” However, what Construction Week is actually here to see is the central feature of Meydan City, which is now reaching completion: the brand new grandstand and racetrack facilities.

“THE GRANDSTAND IS THE LONGEST AND LARGEST ‘LANDSCAPER’ IN THE WORLD WITH A SPAN EQUIVALENT TO 22 BOEINGS”

CONSTRUCTION WEEK DECEMBER 26, 2009–JANUARY 8, 2010

“The grandstand is the longest and largest ‘landscraper’ in the world with a span of 1.6kms or the length of 22 Boeing 747 planes,” explains Khayat. It’s also extremely impressive given that ground was only broken on the project in

MEYDAN COMMERCIAL DIRECTOR MOHAMMED ABDUL NASSER AL KHAYAT: “A LIFESTYLE DESTINATION FOR THE UAE AND THE WORLD.”


THE ORIGINAL PRINCIPLE CONTRACTORS WERE RELEASED FROM THEIR CONTRACT BY MEYDAN AT THE BEGINNING OF 2009 FOR FALLING BEHIND SCHEDULE.

June 2007 and its progress was anything but smooth. A year ago, Meydan cancelled the US $1.25 billion contract it had with a joint venture between the Malaysian contractor WCT and Arabtec, for the construction and completion of the main building works, external works and infrastructure works of the racecourse project. Meydan claimed the contract had been cancelled as the JV “failed to abide by the time schedule for the completion”, however there were suggestions that the JV was unhappy about payment being behind construction, which was 60% complete at the time.

“ON THE UPPER SIDE OF THE ROOF, 4840 SOLAR PANELS GENERATE A 750KW OUTPUT”

“In any construction project there are always differences between what you want to achieve and what is actually happening on the ground,” a WCT spokesman said. “Changes to the design and to the work that is to be done are always happening in every project.”

THE 2010 DUBAI RACING SEASON “There will be nine race nights, including three double-headers,” explains Dubai Racing Club CEO Frank Gabriel Jr. “Thanks to the new racetracks, both the Dubai World Cup and the Sheema Classic can start and finish in front of the grandstand, creating incredible anticipation and energy.” Jan 28 – Dubai International Racing Carnival (First meet) Feb 4 & 5 - Dubai International Racing Carnival Feb 11 - Dubai International Racing Carnival Feb 18 & 19 - Dubai International Racing Carnival FRANK GABRIEL JR. Feb 25 - Dubai International Racing Carnival March 4 & 5 - Dubai International Racing Carnival (Super Thursday and Meydan Masters) March 27 – Dubai World Cup and official launch of Meydan grandstand and racecourse

MEYDAN CHAIRMAN SAEED AL-TAYER SAYS THAT WORK ON THE OTHER PHASES IS CONTINUING.

Chinese State Construction Engineering Corporation and Mammut Building Systems stepped in to take over principle construction and, fortunately, any disruption has not translated into the quality of the project itself. Meydan’s head of projects, Douglas Small reveals that between 2 600 and 5 000 construction workers were onsite at any time during the building process; meanwhile, at the height of construction, there were eighteen cranes also onsite. Measuring almost 1.6kms across and boasting a built area of 306,580m2, the grandstand has seating for 20,000 spectators, although its total actual capacity lies closer to 60,000. Meydan officials expect to see around 300,000 race fans hit the grandstand during the 2010 season. The grandstand consists of several sections and lying at one end of the complex and taking up a third of it is the five-star ‘The Meydan’ hotel. The rooms are all fully integrated and 95% of them overlook the course itself. At the other extreme of the ‘landscraper’ is a marina which, through the construction of a canal network, joins up to Dubai Creek, providing boat owners with a convenient place to stop during race days. Designed by Malaysian outfit TAK – the master planner behind the Palm Deira – which has also served as the project management

DECEMBER 26, 2009–JANUARY 8, 2010 CONSTRUCTION WEEK

15


THE GIANT CANTILEVERED CRESCENT ROOF IS ONE OF THE MAIN STRUCTURAL FEATURE ON THE HIGH PROFILE PROJECT.

“THE NET VALUE INCLUDING CAR PARK, TRAINING FACILITIES AND INFRASTRUCTURE IS AROUND US $2.7BN”

firm for the first phase of Meydan City, the grandstand’s most impressive point, however, is at its centre where the seating, restaurants, bars and VIP/corporate suites are topped by a cantilevered crescent roof that runs 426m in length and spans 56m across. “On the upper side of the roof, there are 4,840 solar panels generating a 750Kw output,” explains marketing and communications manager William Oburu. “The solar panel surface area measures 5852m2 and the underside is made from titanium. It took 9000 tonnes of steel, in total, to create.” The crescent roof was topped off in April 2009, less than two years after ground was broken on the grandstand. Sitting snuggly under the crescent roof is the grandstand’s piece de resistance – the rooftop bubble lounge or ‘the sky bubble’ as Meydan is calling it, which was a late addition to the original design concept. With the capacity to hold more than 4,500 people, the glass pod has 360 degree views back over Sheikh Zayed Road as well as, of course, the racecourse. It also offers great views over Meydan’s other ingenious and, in many cases, unique features, such as the world’s largest LED

16

THE MEYDAN CITY PROJECT HAS BEEN MASTER PLANNED AND PROJECT MANAGED BY MALAYSIAN FIRM TAK.

screen which runs almost 110m along the track in front of the grandstand and has a screen area of 1213m2. You can also glimpse the elaborate network of tunnels – totaling more than two kilometers in length – that guide horses, trainers and jockeys quickly around the facilities. Then there is the IMAX theatre that seats 585 viewers. “The grandstand development has a value of around AED 4.6 billion [US $1.25bn],” claims Meydan chairman Saeed Al-Tayer. “But the net value including the Falcon Car Park, training facilities and infrastructure

CONSTRUCTION WEEK DECEMBER 26, 2009–JANUARY 8, 2010

will be about AED 10bn [$2.7bn]. It’s a very detailed project.” The Falcon Car Park structure holds bays for 8,622 cars and is so named because “… the design as you approach the track is of a falcon and is the most challenging architectural feat to date, especially considering the whole project was completed within 24 months,” explains TAK managing director Teo A Khing. While Meydan may be a good news story at a time when Dubai really needs one, the Meydan chairman insists that it will be far from the last of the emirate’s successes.


THE GRANDSTAND HAS SEATING FOR 20,000 AND A TOTAL CAPACITY OF AROUND 60,000.

“20-30% OF COMPONENTS, FIXTURES, FITTINGS, INTERIORS AND CARPETS CAME FROM LOCALLYBASED COMPANIES”

THE NEW TURF TRACK FEATURES A MASSIVE 200M STRAIGHT FOR TOP-CLASS RACING.

“Sheikh Mohammed Bin Rashid Al Maktoum and the Dubai government granted us the land for this landmark building and its associated projects and they have therefore been extremely helpful and supportive throughout,” continued Al-Tayer. “The economy is difficult for the world, not only Dubai. It’s a challenge for everyone

else too. We’re dealing with it and delivering the grandstand and racetracks are the first part of meeting this challenge.” However, Al-Tayer is a little more cryptic when discussing the remaining phases and developments within Meydan City, which, to date, have no completion deadline attached. “We’re dedicated to our investment and we’re working closely with partners but it’s also in their hands to decide. The infrastructure has been commenced, as planned.” Around 80% of infrastructure has been completed in Horizons – where 100 of 140

BUILDING THE TRACKS Meydan will boast two new racetracks, a 2400m turf track and a 1750m all-weather track – replacing the previous dirt track – as well as high quality turf and all-weather training tracks. The turf track consists of Bermuda grass (over-sown with rye) on top of two layers of sweet soil root zone, a red sand tapered drainage layer and a bed on natural subgrade soil. The all-weather track is based on a dedicated system called Tapeta. “The Tapeta surface has proven to be a safe and reliable, and has shown outstanding durability in this climate, says Dubai Racing Club’s Frank Gabriel Jr. “It provides drainage and great cushioning for horses, aiding their longevity. The top layer is made from a mix of fibre, rubber, sand and wax.” Turf: • Left handed • 2400m oval • Chutes of 1200m and 2000m • 30m wide • 5% banking on turns • 1.5% banking on straights • Final turn to finish 450m

All weather: • Left handed • 1750m oval • Chutes of 1500m and 1600m • 25m wide • 6% banking on turns • 1% banking on straight • Final turn to finish line 400m

plots have been sold – while Meydan claims to be “re-strategising and working closely with new partners” on the second phase of Metropolis, while the sub-station is on schedule to be completed in 2010. Khayat agrees. “We’ve focused on the infrastructure, which is very important because it gives investors an indication when they can start on their own land. We cannot define when construction goes on, it depends on the investor. Some want to start because they have already invested in the land and there are some who are not looking to start just yet. It’s a phased development like Dubai Marina, which took almost 10 years to be fully ready.” Another issue that has accounted for some of those news pages that Dubai has dominated over the past few weeks is that of non-payment with Chinese firms. Fareastern firms played significant roles in the completion of Meydan grandstand and Al-Tayer claims that those relationships remain strong. “The Chinese contribution to this project was immense – from the curtain wall, to work on the Falcon car park to the principle construction carried out by China State Construction. Chinese companies provided between 45% and 50% of construction supplies for the grandstand and racecourse. “However, many of the other suppliers and JVs are based locally and 20 to 30% of components, fixtures, fittings, interiors and carpets came from national companies.” The message is clear: the developers and all involved with Meydan City are determined to provide not only a top class racing venue but, in fact, a top class development. “You’ve seen what has been accomplished in 18 months,” finishes Al-Tayer. “We’re now going to hold a racing season with the kind of facilities that we’ve never had in 14 years of racing.” 

DECEMBER 26, 2009–JANUARY 8, 2010 CONSTRUCTION WEEK

17


PRAKASH SINGH/AFP/GETTY IMAGES

INDIAN LABOURERS WORK ON THE UNDERCONSTRUCTION CYCLING VELODROME AT INDIRA GANDHI INDOOR STADIUM COMPLEX, IN NEW DELHI. WORK LIKE THIS MAKES THE CONSTRUCTION INDUSTRY INDIA’S SECOND BIGGEST EARNER.

THE SUB-CONTINENTAL CW LOOKS AT WHICH INDIAN FIRMS ARE PROVING TO BE SUCCESS STORIES IN THE MIDDLE EAST AND WHAT THE FUTURE HOLDS FOR THEM

APPROACH

By Alison Luke

I

ndia-headquartered firms have made significant contributions to the Middle East’s construction sector over the past few decades. Their input has spread across the entire sector, with firms varying from manufacturers to developers, consultants and contractors. So who are proving success stories and with the recent economic

developments on both continents, what does the future hold for such input?

SUPPLYING THE MIDDLE EAST India-based manufacturers provide many products for the Middle East construction market; everything from diggers, to tools. One of the largest and most recognised names is Tata. Its Telco Construction Equipment

CONSTRUCTION IN INDIA Construction is the second largest industry in India, accounting for around 11% of the country’s GDP in 2008 and around 33 million jobs. The sector is expected to be worth US $120 billion in 2010 according to a study by the Associated Chambers of Commerce and Industry of India (ASSOCHAM). The overall economic growth of the country over the past few years has been a major factor in the growth of the construction sector, as demand grew for infrastructure, residential and commercial projects. A large number of construction firms headquartered in India now have operations within the Middle East, providing services ranging from the supply of products, to contracting and consultancy.

Company (Telcon) provides heavy plant and earth-moving machinery among other services. A 60:40 joint venture between Tata Motors and Japan’s Hitachi Construction Machinery, the firm supplies a wide range of construction equipment including hydraulic excavators, backhoe loaders, crawler cranes and multi-utility loaders. Despite the downturn in the economy over the past year, Tata has reported continuing profits during 2009. The firm’s medium and heavy commercial vehicles sales during August 2009 were 10% higher than the August 2008, showing the second consecutive monthly growth for the business. Tata Group began operations within the Middle East in the early 1990s and currently employs more than 4000 people in the region. It views the UAE, Saudi Arabia, Oman, Kuwait and Qatar as key markets and reports that it is “keen on expanding its presence in these countries”. Another firm that has been increasing its presence in the region is Speedcrafts.

DECEMBER 26, 2009–JANUARY 8, 2010 CONSTRUCTION WEEK

19


MANAN VATSYAYANA/AFP/GETTY IMAGES

INDRANIL MUKHERJEE/AFP/GETTY IMAGES

RATAN TATA, CHAIRMAN OF INDIA’S LARGEST CONGLOMERATE TATA GROUP, WHICH OWNS THE SUCCESSFUL TELCO CONSTRUCTION EQUIPMENT COMPANY.

“TATA BEGAN OPERATIONS IN THE MIDDLE EAST IN THE EARLY 90 S AND EMPLOYS MORE THAN 4000 PEOPLE IN THE REGION.” Headquartered in Patna, India, the firm manufacturers a wide range of plant and equipment for the construction industry. Its portfolio includes products ranging from concrete batching plants to stone crushers and mobile hot-mix plants. The firm is currently targeting customers throughout the Gulf region.

CONTRACTING There are several large and multi-national Indian contractors now operating in the Middle East. Larsen & Toubro (L&T) is one of the largest and most successful, the firm continuing to win large-scale projects despite the overall economic downturn in the region. Billed as a technology, engineering, construction and manufacturing firm, its Engineering Construction & Contracts division is one of India’s largest construction organisations. The firm’s latest financial figures announced in September show a 47% growth in order inflow compared to the same period in 2008; 26% rise in profits after tax; plus a 10.6% improvement in operating margin. In the Middle East, L&T has manufacturing facilities in Oman and Saudi Arabia, plus offices in Kuwait, Qatar and the UAE. The firm has undertaken several projects

20

LIKE THE GULF, INDIA IS EXPANDING ITS INFRASTRUCTURE WITH RAIL PROJECTS SUCH AS THE DELHI METRO.

in the region, including Dubai’s Discovery Gardens, six electrical substations in Al Ain for the Abu Dhabi Water & Electricity Authority (ADWEA), plus a multimillion dollar residential development in Sohar, Oman. In August 2009 L&T announced several further project wins valued at a total of more than US $217 million. These latest Engineering Procurement and Construction (EPC) contracts will be carried out by the firm’s Electrical & Gulf Projects Operating Company (E&GP OC), part of L&T’s Construction Division. They include the construction of four substations for Qatar Petroleum to serve Ras Laffan Industrial City; a 66/11kV gasinsulated substation (GIS) at Education City, Doha for Kahramaa, Qatar; a 132/11kV GIS for Dubai Electricity & Water Authority (DEWA); plus a 132/33kV GIS substation for Oman Electricity & Transmission Company (OETC). Nagarjuna Construction Company (NCC) is also achieving success both in the Middle East and overall; it is currently planning to expand its Gulf operations. NCC began operations in the Middle East in October 2005 and now has offices in the UAE and Oman. The firm announced a rise in turnover for Q2 of the 2009-10 financial year

CONSTRUCTION WEEK DECEMBER 26, 2009–JANUARY 8, 2010

compared to the previous year, continuing a period of growth for NCC. This growth has also been reflected in its Middle East operations: “Our turnover reached 1.2 billion dirhams over a period of four years,” reports Nagarjuna Contracting manager planning and co-ordination Abhilash Sathyan. Current projects for NCC include a pipeline for DEWA and 588 villas for an Abu Dhabi residential development. It plans to expand its portfolio by bidding for contracts within other sectors explains Sathyan: “At present [NCC is] looking into Government-aided infrastructure projects,” he reports. Shapoorji Pallonji was one of the first Indian construction firms to work within the Middle East. It is the largest private shareholder of Tata Sons, the holding company of Tata Group. The firm undertook its first project, the palace of the Sultan of Oman, in the 1970s and has since completed many other high-profile jobs within the UAE, Oman and Qatar. In 2008 the firm announced that it was re-entering the UAE market having won eight projects valued at a total of around $600 million, including the Fairmont Hotel in Abu Dhabi. The firm’s overseas operations are run from its Dubai office and the firm reported that is has plans to grow within the Gulf region.


DIBYANGSHU SARKAR/AFP/GETTY IMAGES

NEW ENTRANTS One of the latest Indian companies to expand operations in the Middle East is the major construction firm Kristal Group. In late November, the company entered into a joint venture with Bahrain-based real estate developer Crown Dilmun Development to form the new firm Kristal Crown International (KCI). KCI was formed in order to undertake civil contracting projects throughout the Middle East and North Africa (MENA) region. Despite being only a few weeks old, the firm has already begun work in earnest. “Kristal Crown International is working on its first contract, which involves three buildings for the Marina Reef project in Manama, Bahrain,” reports a spokesman for Crown Dilmun. “This is a multi-million dinar (BHD) project and there are others in the pipeline,” he adds. At the announcement of the joint venture, Kristal Group chair and CEO KK Namboodiri explained that the “massive potential” in the region’s construction sector was one

of the attractions of the Bahrain deal. For Crown Dilmun the choice of partner came down to the overall experience and attitude of the other firm. “We were not necessarily looking for an Indian firm, but [Kristal] had all the features we wanted,” states the spokesman. “They have the credentials and experience in building work, seem very honest…and the management is very positive in all respects,” he adds. A dedicated office for KCI is now operational in Bahrain and further offices are planned as the company expands. “There is a threephase programme in the pipeline for the development of the joint venture and we have huge ambitious plans for the future,” stresses the spokesman. Each phase of the programme is expected to take around one year to implement. The creation of KCI has also led Crown Dilmun to consider expanding its operations to India. “We are currently seriously considering a large project in India,” reports the spokesman. With such co-operation

AM NAIK, THE CHAIRMAN AND MANAGING DIRECTOR OF LARSEN AND TOUBRO, WHOSE COMPANY HAS MANUFACTURING FACILITIES IN OMAN AND SAUDI ARABIA, PLUS OFFICES IN KUWAIT, QATAR AND THE UNITED ARAB EMIRATES.

and international ties, and the construction sectors in both regions expected to grow in the near future, it seems that Indian firms will continue to make positive contributions to the Middle East for some time to come. 


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www.ConstructionWEEKonline.com/directory

DIRECTORY

DIRECTORY TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE

24 TENDERS 25 PROJECTS SPECIALIST SERVICES 26 Building materials 27 Construction chemicals/concrete 28 Education & training/flooring 29 Recruitment/steel CITY UPDATE 30 Doha, Qatar

To advertise please call Shishir Desai +971 4 435 6375, or email shishir.desai@itp.com

DECEMBER 26, 2009–JANUARY 8, 2010 CONSTRUCTION WEEK

23


TENDERS §

¦TENDERS FREE TENDERS AND SERVICES IN THE CONSTRUCTION INDUSTRY TO INCLUDE YOUR TENDERS IN THIS SECTION EMAIL TENDER DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM

Tender focus

MINISTRY OF MANPOWER, OMAN Established in November 2001, the ministry proposes and implements manpower general policies in line with the state economic and social objectives. It prepares draft laws and systems regulating the labour market and vocational training sector in the sultanate. Other responsibilities include applying, following up, monitoring and implementation of the labour laws and regulations and providing labour care in coordination with the concerned authorities. The ministry currently has a number of tenders open for bidding. Contracts will include the construction of a vocational training centre in Al Buraimi and the construction, completion and maintenance of a proposed building for the labour office in Sumail. The bidding closing date for both tenders is January 4, 2010. 

To include your tenders in this section email tender details to editor@ConstructionWeekOnline.com

BAHRAIN Issuer: Electricity and Water Authority Tender No: 345/2009/5310 Description: Replacement of defective meters and faulty current transformers. Closes: January 20 Fees: BD15 Bond: BD500 Contact: www.tenderboard.gov.bh EGYPT Issuer: Egyptian Railways Integrated Services Company Description: Engineering, design, installation and commissioning of four stationary train washing systems in Cairo. Closes: January 24 Fees: EP5000 Bond: EP200,000 Contact: The Railways Workshops, Al Farz, El Sharabiya, Cairo OMAN Issuer: Public Authority for Electricity and Water Tender No: 324/2009 Description: Construction of chlorination unit in Al Khoud Reservoir. Closes: December 28 Fees: OR200 Contact: www.tenderboard.gov.om Issuer: Majis Industrial Services Tender No: 332/2009 Description: Construction of a seawater intake pumping station in Sohar. Closes: December 28 Fees: OR125 Contact: www.tenderboard.gov.om Issuer: Ministry of Manpower Tender No: 326/2009 Description: Construction of a vocational training centre at Al Burami. Closes: January 4 Fees: OR1450 Contact: www.tenderboard.gov.om

24

THE MINISTRY OF MANPOWER IMPLEMENTS AND MONITORS LABOUR LAWS.

Issuer: Ministry of Transport and Communication Tender No: 336/2009 Description: Design and construction of roundabout and pedestrian underpass in Wilayat of Nakhal, Al Batinah region. Closes: January 4 Fees: OR350 Contact: www.tenderboard.gov.om Issuer: Majan Electricity Company Tender No: 344/2009 Description: Supply of electrical cables for Majan Electricity Company. Closes: January 4 Fees: OR150 Contact: www.tenderboard.gov.om Issuer: Ministry of Manpower Tender No: 326/2009 Description: Construction of a vocational training centre in Al Buraimi. Closes: January 4 Fees: OR1450 Contact: www.tenderboard.gov.om Issuer: Public Authority for Electricity and Water Tender No: 335/2009 Description: Construction of water distribution network. Closes: January 11 Fees: OR1500 Contact: www.tenderboard.gov.om QATAR Issuer: Public Works Authority Tender No: PWA/GTC/056/09-10 Description: Civil works in Ain-Khalid area. Closes: December 29 Fees: QR4000 Contact: Contract department, Public Works Authority Issuer: Public Works Authority Tender No: PWA/GTC/051/09-10 Description: Construction, completion and maintenance of administration offices and car parking for the Supreme Council of Justice. Closes: January 5 Fees: QR1500 Contact: Contract department, Public Works Authority

CONSTRUCTION WEEK DECEMBER 26, 2009–JANUARY 8, 2010

Issuer: Public Works Authority Tender No: PWA/GTC/048/09-10 Description: Construction, completion and maintenance of a health care centre in Al Nuaim. Closes: January 12 Fees: QR2500 Contact: Contract Department, Public Works Authority SAUDI ARABIA Issuer: Saline Water Conversion Corporation Description: Construction of a pump station in Buriydah, Saudi Arabia. Closes: December 28 Fees: SR1000 Contact: www.swcc.gov.sa Issuer: Royal Commission for Jubail and Yanbu Tender No: 090-C23 Description: Rehabilitation of Jubail Industrial City Airport. Closes: January 5 Fees: SR1000 Contact: Directorate General of the Royal Commission in Jubail UAE Issuer: Dubai Electricity and Water Authority Tender No: CNE/0114/2008(R) Description: Construction of water intake channel (onshore and offshore sections), and an outfall system. Closes: January 25 Contact: The Chairman, Board of Directors, Dubai Electricity and Water Authority. Issuer: Dubai Electricity and Water Authority Tender No: CNE/0488/2009 Description: Construction of four accommodation buildings at Jebel Ali Power Station. Closes: February 24 Fees: AED2000 Contact: The Chairman, Board of Directors, Dubai Electricity and Water Authority

> For more tenders check online at www.ConstructionWEEKonline.com/tenders


¦PROJECTS

> For the latest projects information visit www.ConstructionWEEKonline.com/projects

§ PROJECTS

A KUWAIT DATABASE - BUILDING PROJECTS FOCUS TO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM

Project focus

AL HAMRA TOWER Al Hamra project is a US $950 million (KD272 million) mixed-use development comprising of a shopping centre and office tower. Situated in Kuwait City, the 77-storey building is around 420m-high. The total land area is 10,978m2 and an additional 7000m2 will be used for a multi-story car park. The client, Ajial Real Estate Entertainment Company, awarded Al Ahmadiah Contracting and Trading the main construction contract in 2005 and construction started soon after. Construction is in progress and is expected to be completed in the last quarter of 2010. Skidmore, Owings and Merrill is the architect for the project.  PROJECT TITLE

CONSTRUCTION ON AL HAMRA TOWER BEGAN IN 2005..

CLIENT

CONSULTANT

MAIN CONTRACTOR

VALUE (US$MN)

STATUS

CENTER FOR RESEARCH & STUDIES AT SHARQ

Ministry of Public Works

Gulf Consult

Al Jaraih Contracting

COLLEGE OF TECHNOLOGICAL STUDIES AT SHUWAIKH

Public Authority for Applied Education & Training

Al Dowailah Engineering Consultants

Not Appointed

16 - 30

award awaited for the main contract

SHOWROOM IN SHUWAIKH

Mr. Zayed Al Khalid

Al Mousawi Engineering Consultant

Not Appointed

16 - 30

project under design

FURNITURE SHOWROOM IN SHUWAIKH

Mr. Zayed Al Khalid

Al Mousawi Engineering Consultant

Not Appointed

2.5 - 15

project under design

ACCOMMODATION FOR JUMEIRAH DEVELOPMENT IN AHMADI

Jumeirah Development

Al Aliyan Consulting

Not Appointed

16 - 30

project under design

MEDICAL CLINICS PROJECT

A'Ayan Real Estate Company

Soor Engineering Bureau

Not Appointed

16 - 30

project under design

HEALTH CENTER AT BAYAN PALACE

Ministry of Public Works

In House

Alamiah Building Company

IMMIGRATION HEADQUARTERS AT FARWANIYA

Ministry of Public Works

Kuwait Technical Consultant

Not Appointed

IDEAL HIGH SCHOOL AT AQAILA

Ministry of Public Works/Ministry of Education

Al Zamami Consultant

Bader Al Mulla & Brothers Company

17

project under construction

KUWAIT BUSINESS TOWN AT AL MIRQAB AREA ZONE 3

Kuwait Business Town Holding Company

Projacs/Pace/Fentress Bradburn

First United General Trading & Contracting

96

project under construction

AL HAMRA TOWER

Ajial Real Estate Company

Al Jazeera Consultants

Ahmadiah Trading & Contracting

241

project under construction

COMMERCIAL BUILDING IN SHUWAIKH

Mr. Zayed Al Khalid

Al Mousawi Engineering Consultant

Not Appointed

2.5 - 15

project under design

CRIMINAL EVIDENCE HEADQUARTERS

Ministry of Public Works/Ministry of Interior

Kuwait Engineering Group/ NBBJ

Not Appointed

16 - 30

project under design

GATE OF KUWAIT

Al Shaya Group

KEO/GLH Partnership/LG Consulting

Not Appointed

260

project under design

KUWAIT INSTITUTE OF JUSTICE

Ministry of Public Works/Ministry of Justice

Al Zamami Consultant

Not Appointed

31 - 100

KUWAIT BUSINESS TOWN AT AL MIRQAB AREA ZONE 1

Kuwait Business Town Holding Company

Projacs/KEO Int'l/Gensler Associates

First United General Trading & Contracting

108

project under construction

AVENUE SHOPPING MALL EXPANSION - PHASE 3

Mabanee Company

PACE/Gensler

Al Ghanim International Trading & Gen. Contg.

908

project under construction

KUWAIT 12

project under construction award awaited for the main contract

bidding underway for the main contract

To list your projects in this section email details to editor@ConstructionWeekOnline.com

53 2.5 - 15

project under construction


CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 435 6473, OR EMAIL LEIGH.WRIGHT@ITP.COM

Supplier focus

RAMBOLL MIDDLE EAST A SUPPLIER OF ENGINEERING AND DESIGN CONSULTANCY SERVICES Based in Dubai, Ramboll is an international, multidisciplinary engineering, design and consultancy company. It provides services under four main service areas – buildings and design, infrastructure and transport, energy and climate and environment and nature. The company also has a large oil and gas division based in Qatar. The firm has over 200 offices in the Middle East, the UK and India and has worked on projects from China to Ireland and Norway to Saudi Arabia. Also, like many firms, Ramboll has shifted its focus from Dubai to other markets – such as Abu Dhabi and Libya. The company is set to further build its presence in these countries in 2010 through variety of means, and will closely monitor construction markets across the region. Ramboll managing director Peyman Mohajer explains how the company is pulling through the downturn: “The liquidity problems faced by many developers have been well documented for a year now. We have tried to help wherever we can, by agreeing revised payment schedules, or revised scope of work, to suit both parties. We have combined this with a broadening of our horizons to new markets, and using Ramboll’s international expertise to develop new services in the region.” 

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SPECIALIST SERVICES §

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RAMBOLL MANAGING DIRECTOR PEYMAN MOHAJER.

BUILDING MATERIALS

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CONSTRUCTION WEEK DECEMBER 26, 2009–JANUARY 8, 2010


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§ SPECIALIST SERVICES

BUILDING MATERIALS

STEEL

HARD LANDSCAPING SUPPLIER

CONSTRUCTION/MANUFACTURERS

CONSTRUCTION CHEMICALS

Full range of plaster, tiles and gypsum tools

DEWATERING

Engineering Works Foundation Infrastructure (L.L.C.) P.O. Box: 111245, Dubai - U.A.E. P.O. Box: 2752, Abu Dhabi - U.A.E. Tel: +971 4 340 9022 Fax: +971 4 340 8952 E-mail: brian@ewfi.ae

SPECIALIZED DEWATERING SERVICES: • Specialized in Deepwell, Wellpoint, Open pumping techniques • Professional Service OTAL (LLC) Dubai, U.A.E Phone: (+971-4) 267 9646 e-mail: otal@eim.ae website: www.otal.ae

• Round the clock backup • Effective Groundwater control

DECEMBER 26, 2009–JANUARY 8, 2010 CONSTRUCTION WEEK

27

To advertise please call +971 4 4 435 6375 or email shishir.desai@itp.com

CONSTRUCTION/MANUFACTURERS


SPECIALIST SERVICES §

¦SPECIALIST SERVICES CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4

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Alomi

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HVAC & PLUMBING RELATED EQUIPMENT

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CONSTRUCTION WEEK DECEMBER 26, 2009–JANUARY 8, 2010

PP CORRUGATED SHEETS


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ยง SPECIALIST SERVICES

RECRUITMENT

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DECEMBER 26, 2009โ€“JANUARY 8, 2010 CONSTRUCTION WEEK

29


KARIM JAAFAR/AFP/GETTY IMAGES

CITY UPDATE DOHA, QATAR “WE EXPECT 2010 TO BE THE BOTTOM OF THE MARKET IN TERMS OF PRICES, BUT WE DON’T NECESSARILY SEE ANY UPTURN IN 2011 AS BEING AGGRESSIVE BECAUSE OF THE SUPPLY COMING IN”

A PEDESTRIAN WALKS PAST THE BUILDING OF THE DOHA SECURITIES MARKET IN THE QATARI CAPITAL.

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CONSTRUCTION WEEK DECEMBER 26, 2009–JANUARY 8, 2010


Slowing, but still steady DEVELOPMENT IN DOHA MIGHT REFLECT NATIONAL TRENDS BUT THE QATARI CAPITAL STILL LOOKS A SAFE BET FOR LONG-TERM REGIONAL INVESTMENT By James Boley

T

his has seen an overall slowdown in the Qatari construction industry, but 2009 has still seen the hydrocarbon-rich country grow. A report from Business Monitor International issued in Q4 said that the construction industry would grow by 5% in 2009, saying “one of the best prospects for growth in the infrastructure sector in the Middle East in 2009. Despite a further downward revision to our forecasts for the country in 2009, we are still optimistic for the sector’s potential, and thus expect it to achieve one of the highest growth rates in the region.” Like many other GCC cities, infrastructure seems to be the key area for growth. The under-construction US $14 billion New Doha International Airport is still on schedule

THE PEARL QATAR.

for 2011 and will cover over 22 kilometres outside the city. Residential development, however, is likely to be off the agenda for some time to come. An oversupply caused by an extra 5,000 new properties and a decline in people moving to Doha as a result of the economic slowdown has seen rental prices plummet by 35% over the last year, according to a study by Century 21 Qatar. Meanwhile, other reports suggest that prices could fall by a further 15%, according to The First Investor Asset Management as a further 10,000 homes come online next year. “We expect 2010 to be the bottom of the market in terms of prices but we don’t necessarily see any upturn in 2011 as being aggressive because of the supply coming in,” says Keith Edwards, head of asset management at the investment bank. As a result, improving the quality of the existing city centre comes high on the agen-

da. Demolition work to clear space for the $5.5 billion Heart of Doha development is in full swing, with construction work expected very shortly. The project represents work by Allies and Morrison to improve how easy it is to live in Doha as a pedestrian. “We are witnessing Doha beginning the rebirth of its city centre. But to do this it needs to bring Qatari families back into the city centre and become more pedestrianfriendly,” says A&M partner Tim Makower. “The West Bay district of Doha is not very pedestrian-friendly and so it has become a car dominated area. We need to encourage people to spend less time in their cars.” 

TOP PROJECTS New Doha International Airport Lusail The Pearl Qatar Doha Metro Doha Convention Centre and Tower

US$ 11bn $5.5bn $5bn $3bn $1.5bn DON EMMERT/AFP/GETTY IMAGES

THANOS LAZOPOULOS/ITP IMAGES

“WE ARE WITNESSING DOHA BEGINNING THE REBIRTH OF ITS CITY CENTRE ... IT NEEDS TO BRING QATARI FAMILIES BACK INTO THE CITY.

THE SKYLINE IS FILLED WITH CRANES AS CONSTRUCTION CONTINUES ON HIGH-RISE BUILDINGS IN DOHA.

DECEMBER 26, 2009–JANUARY 8, 2010 CONSTRUCTION WEEK

31


DIALOGUE MUZAMMIL SHAIKHANI Great expectations Rubber World Industries (RWI) managing director Muzammil Shaikhani discusses his company’s plans to upsize and how it will reach its growth targets

By Sarah Blackman

How does your product differ from other insulations?

Gulf-O-Flex is a closed cell electromeric insulation and an environmentally friendly, CFC-free and flexible material, which can withstand severe environmental conditions. It can retard heat gain and prevent condensation or frost formation on refrigerant lines, cold water plumbing and chilled water systems. It delays heat loss for hot water plumbing, liquid heating, dual temperature piping and many solar systems. What are the disadvantages of using rubber products?

GCC, we have expanded our business to the Asian and African continents, which will help us further boost our growth. Has exporting helped you survive the downturn, as projects have been put on hold in UAE?

Yes, definitely. We are expecting to supply more air conditioning and refrigeration products to the African and Asian regions. How high is the demand of rubber insulation products?

Rubber insulation is a bit more expensive compared to fiber In the initial stages of the recession, demand slowed down glass and mineral wool. However, rubber slightly. However, we are confident insulation can be used in a temperature that demand will shoot up again in the Muzammil Shaikhani, a graduate in range of -40 to +120º C, while the other coming year. We have also monitored finance and business administration, is two materials can go only sustain up to a significant drop in imports from Italy a founding member and the director of 350-400º C. and China, an indication of the market the Dubai–based property developer, turning into local sources for rubber When do you plan to expand to Qatar MRE Global Investment Group. He is insulation products. and Iran and why those markets?

also the director of the Memon Group of

Companies, a business conglomerate, When the recession affected the growth What are your expectations for 2010? We are on the threshold of 2010 of the UAE’s construction market, we which is now celebrating its 30th year with great expectations. We are decided to look for other opportunities in business. He initially worked with the Memon Group, and thereafter headed anticipating the result of our efforts by capturing the export market in the group’s manufacturing giant, Rubber in 2009, including the launch of new all its depth. After thorough market World Industries, before establishing his products, production of new materials research, we have identified Qatar and presence internationally with operations in and overseas marketing, to pay off Iran as booming markets, which hold the Middle East, Asia, and Europe. significantly. We are also expanding enormous potential for our products. our business by growing our client As a first step, we have participated in roster, developing more products and a number of high-profile exhibitions in penetrating new markets. We are confident all these efforts both countries with aims of building awareness for the Rubber will make 2010 a wonderful year for RWI. World brand.

What do you hope to achieve in Qatar and Iran?

What projects are you currently working on?

We have already achieved 75% to 80% of the target we have set for these two markets. Now, we are expecting 20% more business at the onset of the coming year.

We are supplying our products to a number of high-profile projects under construction, including Yas Island and Saadiyat Island, Mirdiff City Centre Project, Al Raha Development, Al Reem Island, Rem Raam Project and Jumeirah Park Package 4 and 4A.

RWI aims to achieve 25% growth in its production in 2010. How will you achieve this?

After having all the calculation and analysis on all aspects of our operations, we came to a prediction that we can increase our production and sales during 2010. We can reach our target without any difficulties, as we have new products and a strategy planned. With new vision and good marketing, we are now increasing our clients’ strength. Apart from the

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CONSTRUCTION WEEK DECEMBER 26–JANUARY 8, 2009

EDITOR’S NOTE: In CW issue #301, an interview with Rabih Fakih of Grey Matters indicated that the price of self consolidating concrete was “around 50% higher than conventional concrete”. The correct figure should have read 15%.


Construction Week Issue 302  

Construction Week Issue 302 - ITP Business

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