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NOVEMBER 2016 meconstructionnews.com

THE BUSINESS OF CONSTRUCTION

“If you’re not flexIble enough as a company to adapt to the sItuatIon and the cycle of busIness, then you don’t deserve to survIve”

ENGINEER HAMAD AL AMERI OUTLINES HIS PLAN TO TURN TROJAN HOLDING INTO THE BEST IN THE BUSINESS


GETTING CLOSER TO THE TOP...

Getting closer to the top of the tallest mountain in the UAE will soon be a lot easier, thanks to the fleet of Volvo construction equipment used in the building of the road to the Jebel Jais mountain. When it’s finished, the route will run from Ras Al-Khaimah right to the 1,910 metre summit. The road has already become a popular destination for motoring enthusiasts, who like to show off what their machines can do. But when the road runs out, that’s where the Volvo VIDEO http://goo.gl/FPsU43

operators show off their machines. And it’s impressive to see what they can do. If you want to get closer to the action, scan the code and watch the video. Building Tomorrow.


Contents

Issue 128 November 2016 06

12

18

26

36

46

04 ME Construction News.com

16 Jeddah Retail and Hospitality

42 Beware the False Economy

06 Marasi Business Bay opens

18 Trojan Holding

50 The Big 5 Dubai

ONlINe

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

November launch of $272m project to coincide with opening of Dubai Canal

MarkeT OvervIew

JLL report examines the retail and hospitality real estate market in Jeddah, Saudi Arabia IN prOfIle

Gavin Davids meets Hamad Al Ameri, the managing director of Trojan Holding

cOMMeNT

Zander Muego explains the pitfalls of choosing cost over value shOw prevIew

Previewing the Middle East’s biggest construction show ahead of its opening

10 Kier sells Mouchel Consulting 26 The Hidden Gem Construction services giant sells consultant to WSP in the UK for $92 million

Big Project ME visits the Al Zorah mixed-use development in Ajman

76 Top tenders

12 Contraction Pains

36 An Invitation to Change

80 Paving the Way

INTerNaTIONal News

aNalysIs

David Clifton expects the Saudi Arabian construction market to shrink further as we move into 2017

sITe vIsIT

susTaINabIlITy

EmiratesGBC releases a new report that will change the way the UAE hospitality sector looks at sustainability

TeNders

Big Project ME lists the top tenders for the month of November 2016 lasT wOrd

Jason Lewis outlines five key principles to consider when engaging a wayfinding consultant for your project November 2016 1


Introduction

Building for growth

A

s an expat child, I came to the UAE when I was two years old, and with my parents, moved to the East Coast city of Fujairah. Having spent the majority of my childhood there, I tend to view it with a certain fondness, though I can certainly empathise with people who talk about how ‘quaint’ and ‘laid-back’ it is! It does amuse me when they say that, because if they think the 2016 version is quaint, then I’m not sure we’d be able to print what they’d think about the earlyto-mid-90s version I grew up in! The reason why I diverge into this rambling tangent is because I was invited to cover the Al Zorah Development in Ajman for this month’s issue. And on my way over to the massive 5.43 million sqm project, I was struck by how similar Ajman seemed to Fujairah, both in terms of its character and in its pace of development. It brought home to me just how important it is to have projects like Al Zorah in these smaller cities. While Dubai, Abu Dhabi and Sharjah, have all raced ahead in terms of the development of their infrastructure and real estate, the smaller emirates have lagged behind. I don’t think that’s the case anymore, with significant investment being poured into these emirates to push them forwards. What differentiates their ‘megaprojects’

eDItorIAL eDItor gAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480 oNLINe eDItor BEN FLANAgAN ben.flanagan@cpimediagroup.com SUB eDItor AELRED DOYLE aelred.doyle@cpimediagroup.com

PUBLISHING DIrector RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 eDItorIAL DIrector VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5472 Supported by

M

‫ﺟﻤﻌﻴﺔ اﻟﺸﺮق اﻻوﺳﻂ ﻟﺼﻨﺎﻋﺎت اﻟﻄﺎﻗﺔ اﻟﺸﻤﺴﻴﺔ‬

Middle East Solar Industry Association

Empowering Solar across the Middle East

2 November 2016

ADVertISING coMMercIAL DIrector JUDE SLANN jude.slann@cpimediagroup.com +971 4 375 5496 coMMercIAL DIrector MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com MArKetING MArKetING MANAGer LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498

is that they’re aimed at becoming the lynchpin of development within the city. The Al Zorah plot is a fantastic example of this. While the golf course and mangroves have put Ajman on the map, it’s the next phases of development that are going to turn it into the bustling hub of downtown Ajman. It is truly an exciting project, and I can’t wait to see how it goes. As many of you will know, the Big Project ME Awards are being held on November 22, 2016. We’ve had a flood of nominations come in, and they’re all looking quite good. I can’t wait to reveal the winners. It’s going to be a great night. Finally, if you’re reading this, you’re probably at Big Project ME’s first-ever conference, the ME BIM Summit. I’d like to welcome you to the event, and I hope you find it useful. And if you see me around, do come say hello!

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

DeSIGN

PUBLISHeD By

Art DIrector SIMON COBON PHotoGrAPHy MAkSYM PORIECHkIN cIrcULAtIoN & ProDUctIoN DIStrIBUtIoN MANAGer SUNIL kUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 ProDUctIoN MANAGer VIPIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 WeB DeVeLoPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI SHAHAN NASEEM

Registered at IMPZ PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com FoUNDer DOMINIC DE SOUSA (1959-2015) PrINteD By PRINTwELL PRINTINg PRESS LLC © Copyright 2016 CPI. All rights reserved while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.


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Online

MOST POPULAR

FEATURED

READERS’ COMMENTS

CONSTRUCTION

DUbAI OFFICE DEMAND

Building work starts on ‘The Tower’ in Dubai

A TALE OF MANy MARkETS

CONSTRUCTION

UAE wage protection decree comes into force

In pictures: Sheikh Mohammed launches The Tower at Dubai Creek harbour

As someone with 12 years’ experience renting commercial space in the UAE, it was interesting to read your report about the complex nature of the market (Office rents flat or falling in most Dubai submarkets, October 18). It’s a sign of a mature and maturing market that the city’s many different areas are seeing vastly different patterns in supply and demand. Name withheld, via email

CONSTRUCTION

Arabtec awarded $92m hotel project in Dubai

MAN AND MAChINE vERSUS ThE ENvIRONMENT

INFRASTRUCTURE

Oman: Turkish firm wins $277m Duqm Port contract

CONSTRUCTION

Wael Allan named CEO of Dubai’s Drake & Scull 4 November 2016

video: Abu Dhabi Airports’ Midfield Terminal building construction update

Your report on the building of the UAE’s highest road (up its tallest mountain) was an inspiring tale (Moving mountains: How the UAE’s highest road was built, October 19). The rugged environment (as you say – like you ‘have set foot on a different planet’) just shows the power of these machines –machines that we see in use in less extreme settings every day. Mandeep Nahel, via website


The big picture

Dubai’s new destination The $272m Marasi Business Bay is expected to become a major tourist and visitor destination for the city, Dubai Properties says.

Marasi Business Bay opens in November $272 million project launch will coincide with opening of Dubai Water Canal The Marasi Business Bay Promenade project, which is being built at a cost of $272 million, is scheduled to open in November 2016, according to Dubai Properties (DP). More than 10km of the 12km promenade has been completed, with the project opening set to coincide with the opening of the Dubai Water Canal, the developer said. The Dubai-based developer said in a statement that the surrounding infrastructure, including paving of open areas, is also complete in the 10km finished stretch of the project. DP expects the destination to be used for outdoor family time, entertainment and weekend leisure activities. “The Business Bay landscape 6 November 2016

will be redefined with the opening of the Marasi Business Bay Promenade and the Dubai Water Canal,” said Abdulla M. Lahej, group CEO of DP. “Visitors and residents in this area, which has been known more for its commercial activities, will now have a unique venue in the heart of the city where they can enjoy a new active, urban lifestyle at the city’s next iconic fitness and leisure destination.” “The $272 million Marasi Business Bay mixed-use destination will become

synonymous with what Dubai has to offer ahead of the World Expo 2020 and in line with the Dubai Plan 2021 to create a smart and sustainable city with happy people.” Marasi Business Bay has direct connectivity to the city’s main transport arteries and is located within 550m of Downtown Dubai, the statement said. DP also claims the project is the region’s first purpose-built yachting destination, located along the Dubai Water Canal on the extension to the Dubai

$272 million Total cost of the Marasi Business Bay project

Creek. The project is divided into three themed main areas – The Marina, The Park and The Pier – with the first two scheduled for delivery in Q4 2017. In October, Dubai’s Road and Transport Authority said that installation works on a major pedestrian bridge over the Dubai Canal, near Al Safa Bridge, had begun. Excavation works, as well as the building of the concrete banks on either side of the canal, have been completed, the RTA said. The canal project will have a total of five pedestrian bridges along its 3.2km stretch once finished. Work on other projects is progressing well, the authority added, with another pedestrian bridge near the Jumeirah flyover currently under construction.


The big picture

UAE wage protection decree enforced Ministry of Human Resources and Emiratisation protects labourers’ rights A UAE decree designed to ensure that employees are paid on time and in full came into force on October 3, 2016. The wages protection decree was launched by Saqr bin Ghobash Saeed Ghobash, Minister of Human Resources and Emiratisation. Maher Al Obed, assistant undersecretary for the Inspections Sector, said the decree would safeguard employees while keeping business owners’ interests in mind. “Salaries paid on time is a major contribution towards labour rights protection, which is highly recognised by the UAE,” Al Obed said. “We value such decisions, as it promotes labour relations which in turn secures a balanced labour market productivity, and eventually turns out with positive outcomes for both labourers and employers.” The decree highlights companies employing over 100 workers. Such companies must pay wages within a period not exceeding 10 days from the registered payday in the wages protection system (WPS). If they fail, the ministry will stop granting them additional work permits, starting from the 16th day of delay. If a company delays wages a month from the due date, the ministry shall instruct judicial authorities and other related parties to take all necessary punitive measures against the violating company, WAM reported. The ministry will also halt other companies owned by the same employer, plus forbid any upcoming projects foreseen by the same owner. If a company continues to refrain from paying wages, the ministry shall take necessary measures to use the company’s bank guarantee, then downgrade it to a third category company,

“We value such decisions, as it promotes labour relations which, in turn, secures a balanced labour market productivity, and eventually turns out with positive outcomes for both labourers and employers”

plus enable workers’ mobility options to other companies. “If the company fails to pay wages for 60 days from the due date, then administrative fines shall follow, in addition to registered fines for failing to pay wages a month from the due date, as stated above in the first scenario,” Al Obed added. Administrative fines reach AED 5,000 per worker’s delayed wage pay, stretching to a maximum of AED 50,000 in events which include multiple workers protesting about deferred wages past 60 days, WAM reported. The ministry lifts the ban on violating companies, allowing them to apply for new work permits, only if they promptly pay deferred wages during the first late month, while the ban lasts for 60 days if companies fail to fund wages for more than two months. According to the decree,

companies that pay refrained salaries yet record such violations repetitively shall face a double-duration ban. If the ministry notes salary delays or refrains by a company that employs less than 100 employees, the current regulations – which include penalties like a ban on work permits, fines and court referrals – shall apply where a company fails to pay wages within 60 days. If the company repeats such violations over the span of one year, the ministry shall apply penalties declared for companies hiring over 100 workers. The decree states that the ministry shall not proceed with any transactions with companies that did not register in the WPS. In addition, owners of these companies will be kept aside until the registration in the WPS is completed.

Salary payments safeguarded The Ministry says it will look to ensure that workers are paid on time as part of the labour rights protection scheme.

November 2016 7


The big picture

KIPCO launches $2.5bn mixed-use project on outskirts of Kuwait City Hessah Al Mubarak real estate development will span 227,066sqm The Kuwait Projects Company (KIPCO) has started work on a real estate project worth between $2 billion and $2.5 billion, the investment firm has said. The Hessah Al Mubarak project on the outskirts of Kuwait City will span 227,066sqm, KIPCO said. The project has been downsized to around half the original cost of $5 billion because the first estimate did not take into account the area for infrastructure and services required by the government, Reuters reported. A land plot of around 380,000sqm was previously earmarked for the development. Banks will provide financing for half of the project, with

KIPCO funding the remainder of the project directly. The project development manager is Al Mutawir Real Estate Company, while the infrastructure contract has been awarded to Ahmadiah Contracting and Trading Company. Mobilisation on site has begun. The mixed-use Hessah Al Mubarak development will be aimed at both Kuwaitis and expatriates, said Faisal

Al Ayyar, KIPCO executive vice chairman. “This project offers a new approach to upper-scale, integrated, urban, mixed-use developments in Kuwait. We have taken a holistic approach to design.” “The owners have made a commitment to quality, and we will be laying down all the infrastructure within the master plan – including public facilities and open green areas – to make

381,000sqm Total built-up area of the project

sure that we deliver on this promise, now and in the future.” Close to 50% of the 227,066sqm plot is dedicated to public services and amenities, KIPCO said. Gardens and green areas across the project have been allocated 23,400sqm. The project’s total built-up area will be 381,000sqm, including 82 plots for residential buildings. “More than 70% of the built-up area of the development project is dedicated to residential units. These are strategically located within the master plan to allow residents to benefit from public spaces and amenities,” said Tawfiq Al Jarrah, executive director of the development.

Residential focus More than 70% of the built-up area for the project will be dedicated to residential units, KIPCO said.

8 November 2016


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The big picture

1

1. Kier Group sells Mouchel consultinG to Wsp for $92M

400kg

UK-based contractor Kier Group has sold Mouchel

Weight of a 10m long anaconda found by construction workers on a building site in northern Brazil

Consulting to global consultant WSP for $92 million in cash. Kier bought Mouchel Consulting in June 2015 as part of its $325.7 million acquisition of the Mouchel Group. The British construction giant said in July that it was considering “strategic options” for the division. The contractor had said that it was looking to dispose of the consultancy – which has around 2,000 members of staff – as part of its plans to focus on core business opportunities. “Having completed the integration of Mouchel, we are well progressed with the simplification of our portfolio of businesses,” said Haydn Mursell, chief executive of Kier. Having reaffirmed its fullyear forecast in September, Kier said the sale would result in an immediate profit of $49.19 million. Mark Naysmith, managing director of WSP in the UK, said: “We are pleased to join forces with Mouchel Consulting. Together, we will now be a top-tier player for local and national government transportation projects.”

10 November 2016

2. ADAc inKs Mou With seychelles for Airport reDevelopMent Abu Dhabi Airports Company (ADAC) has signed a memorandum of understanding with the Seychelles Ministry of Foreign Affairs and Transport to redevelop the country’s international airport on the main island of Mahe, the largest in the archipelago. The agreement was signed

in the UAE capital by Ali Majed Al Mansoori, chairman, Abu Dhabi Airports, and Joel Morgan, the visiting Seychelles Minister for Foreign Affairs and Transport. Talks are expected to continue in the near future to decide the size, timelines, terms and conditions of the investment, the minister said. Al Mansoori noted the growth in popularity of the Seychelles as a vacation destination for tourists from

the UAE and globally, and the growing trade relations between the two countries. He also indicated that airport redevelopment would include redesigning and refurbishing the passenger terminal building at Mahe International Airport, among other overhauls. Abu Dhabi’s Etihad Airways owns a 40% stake in Air Seychelles, and Masdar operates a wind energy project in Port Victoria.


The big picture

4. turKish firM Wins $277M infrAstructure contrAct for port DuqM

$25bn

Estimated construction cost of a gas pipeline between Russia and India being studied by both countries 3 4

2

19%

Construction in Queensland, Australia has shrunk by 19% compared to a 10-year average

3. chinese firM siGns $20bn DeAl for eGypt’s neW cApitAl A Chinese firm has reportedly signed a deal to develop and manage a vast area of Egypt’s planned new administrative capital city, which is currently unnamed. The massive project is set to be built to the east of Cairo. China Fortune Land Development has signed a deal involving 14,000 acres

of the city at a cost of $20 billion, Reuters reported, quoting a statement by the Egyptian cabinet. Heads of the firm met with Egyptian President Abdel Fattah al-Sisi to agree the deal, it was also reported. The deal is said to centre on the second phase of the construction works and will include the building of homes, offices and related infrastructure. It is expected

to take at least seven years to be completed. It is being designed to reduce the congestion and overpopulation in Cairo. Egypt’s wider mega project is said to cost some $45 billion and span an area the size of Singapore. Plans include buildings to house government departments, as well as an airport bigger than London Heathrow.

A Turkish engineering firm has been awarded a contract to build the infrastructure of the commercial quay at the Port of Duqm in Oman. Serka Taahhut Insaat, a subsidiary of Abdali Holding, was awarded the $277 million contract, according to the Oman Daily Observer. Works include the construction of roads and the development of a port operation zone, and are expected to complete by around 2019. Plans also include the creation of a 300m dry bulk terminal with capacity to handle five million tonnes per annum of minerals, the newspaper said. “The project consists of all necessary infrastructure like ground improvement, crane rails, power distribution, drainage and sewer systems, site lighting, pavements, roads, perimeter security systems, refer gantry systems, and also the administrative buildings and warehouses on roughly one million square metres of land to serve as a container terminal at Port of Duqm,” according to a statement from Abdali Holding.

November 2016 11


News analysis

ContraCtion Pains David Clifton, regional development director, Faithful + Gould, tells Big Project ME that Saudi Arabia’s construction market will contract further in 2017

Saudi Arabia’s construction market is expected to contract further in 2017, with the market likely to be heavily reliant on the private sector and Saudi Aramco, a leading construction researcher has said.

In a report released earlier this month, David Clifton, regional development director at Faithful + Gould, said that up to Q3 2016, there had been only $18 billion of construction awards out of the company’s forecast $29.9 billion for 2016. “To meet our upper estimate, a Makkah Metro contract award would be required (this would be subject to a Royal Decree). The private sector has delivered over 70% of awards, bucking the trend of all previous years on record,” Clifton said in the report. Speaking to Big Project ME, Clifton adds that the primary challenges facing the KSA construction market revolved around the shutdown in the government awarding work in the past year. Coupled with a lack of liquidity to finance projects and contracting organisations on reasonable terms, the industry now faces an uncertain 2017. “Government entities have 12 November 2016

shutdown in work awarded The primary challenges facing the KSA construction market revolved around the shutdown in governmentawarded contracts over the last year.


News analysis

typically awarded 70% to 75% of all construction contracts in KSA. In 2016, without the private sector and Saudi Aramco, there wouldn’t be much of a contracting market this year,” he explains. “Liquidity is tightening globally, but with the regional governments withdrawing from local banks, their deposit to loan rates have increased. The Saudi Arabian Monetary Authority (SAMA) has raised the limit in February from 85% to 90%, but the market in the round has reached this level

now. Government payments to contractors seized over the course of the year, and although this seems to be starting to unblock, there remains a significant level of money owed all through the supply chain.” However, Clifton says it isn’t all doom and gloom in the Kingdom. With oil prices beginning a level of recovery to $45/barrel and OPEC’s recent agreement to slow production output, the outlook for KSA’s finances seems to be improving. Although the Kingdom is still

running a significant deficit of $86.92 billion in 2016, the upward pressure on oil prices will ease fiscal pains. Furthermore, the Saudi government’s move towards modernisation and cost-cutting has begun, with public sector salaries cut and subsidies on fuel lifted. The lifting of subsidies on power and water has also been forecast. This continued streamlining could lead to the amalgamation of some ministries and government departments. In keeping with the NTP and

Vision 2030, a National Project Management Office (NPMO) is being created for government entities to provide guidelines and governance for future project delivery. However, the NPMO is unlikely to be completely operational before the end of 2017, due to the complexities associated with designing and implementing these initiatives. This will have the knock-on effect of slowing government approval of new projects. “The government has identified the need to restructure,

“2018 looks most likely for a level of recovery, especially when you combine tightening liquidity in the finance markets and the need to structure potential alternative finance for large government driven infrastructure schemes”

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3Q 2016 - Issued October 2016

News analysis

reprioritise and reorganise, so as to limit the exposure to spending, diversify the economy and reduce reliance on the government sector for contracts,” says Clifton. “To make any meaningful impact will take time. As a matter of urgency, however, the government needs to support some larger infrastructure schemes in the market, as the diversification cannot just be switched on like a light.” Although the situation is only forecast to improve in 2018, there is a case to be made for one-off major infrastructure projects, such as the Makkah Metro. However, Clifton points out that the main question around KSA’s project pipelines isn’t about the cutbacks, but rather around reprioritisation and timelines. With the KSA government’s $700 billion programme previously on a ten-year timeline, extending it to twenty will have a dramatic impact on the construction industry, with the government sector essentially halving its awards. “SAMA has released shortterm loans of $4 billion on July and $5 billion in September this year, as well as raising book to loan ratios from 85% to 90% in 2016. With international liquidity tightening, down 8% from Q1 2015 to Q2 2016, the introduction of transparent, competitive alternative financing models in KSA is paramount in order to access funding that is available and deliver on the social infrastructure, power and water requirements for the young and growing population whilst supporting the diversification of the economy,” Clifton explains. “Initial IPOs of government companies are under development but require more urgency to streamline the economy, drive commercial efficiency and release capital 14 November 2016

CENTRAL DEPARTMENT FOR STATISTICS+INFORMATION

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (F)

GDP is expected to grow by 3.6%, although this requires the speedy implementation of the National Transformation Programme (NTP) which aims to increase private sector GDP contribution from 4065% by 2030 AVERAGE CONSTRUCTION MATERIALS PRICES READY MIX CONCRETE - SAR / M3 247.5

250 245 240

239.25

238.75

239.25 233.75

235 230

July 2015

Sep

Dec

Mar

Jun 2016

REBAR SAR/T 2007

2000 1800 1600

1669 1551 1555

1200

1462 1388

1400

Oct Nov 2015

1614

Dec

1519

1462

1406

1238 1256

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug Sept 2016

Average material prices for the main construction materials show similar trends for the rest of the GCC GENERAL INFLATION

Oct 2015

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

July

Aug 2016

As oil prices begin a level of recovery to over $45/barrel recent agreement to slow production output, the outloo is improving. Although still running a significant deficit i upward pressure on oil prices will start easing some of t The governments move to modernisation and cost cutti We’ve seen cuts in public sector salaries, lifting of subsid from these businesses.” forecast to liftahead, subsidies on power and water. Continued Looking Clifton to amalgamation of some ministries and governmental predicts that construction In line withwill the go NTPnegative and Vision inflation in 2030, a National Project (NPMO) being created government and related en the last is quarter of 2016,forwith guidelines and governance for awards struggling to meet future project delivery. Du of designing andthe implementing forecasts and worsening these initiatives, the NPM properly operational before the end of 2017, effectively of the short-term outlook approval of new projects. over the previous quarter. Up to Q3 there has only beento$18Bn “2017 now looks likely be of construction aw forecasted $29.9Bn for 2016. To meet our upper estima slow given our view on Vision contract award would be required (this is subject to a R 2030, although VAT will start therefore sits outside of the NPMO). The private sector h becoming a majorthe pricing of awards, bucking trendfactor, of all previous years on rec while 2018 forecasts start to We anticipate the market contracting further in 2017 w reflect the impact of regional to around $27Bn. This is a consequence of the NPMO im event driven spending and also subsequent lack of government work. The market will a the re-entry the government developers andofSaudi Aramco. The to situation is only forec the construction market. although there is aawards strong case for one off major infrast “NextMetro. year, construction Makkah awards expected to slow The mainare question around KSA’s project pipeline is not a further from just under $30 but around reprioritisation and timelines. The Governme was on in a ten year timeline. Extending billion 2016 (the awards were this to twenty wil effect on theatindustry as essentially $18 billion Q3 2016) to $27 the government sec in Kingdom. billion in 2017 as the industry The Saudi Arabian Monetary Authority again relies on Saudi Aramco and (SAMA) has relea $4Bn on Julysector. and $5Bn September this year as well a the private Theinpossible ratios from to 85this to 90% in 2016. With international liqui alteration is that the $29.9 8% from Q1 2015 to Q2 2016, the billion in 2016 is predicated on introduction of tran alternative financing models in KSA is paramount in ord Makkah Metro being awarded. that is available and deliver on the social infrastructure, Should this not occur, the 2017 requirements for the young and growing population wh numbers willofbethe bolstered this IPO’s of Governme diversification economy.byInitial award. The fact is that Makkah is urgency to stream under development but require more the exception in theand government commercial efficiency release capital from these bu market at this inflation time and the Construction will go negative in the las market really needs awards struggle to another meet forecasts and the wors one oroutlook two major schemes to term over the previous quarter. 2017 no be approved by exception. slow given our view on Vision 2030 although VA a major factor, while 2018 forecasts star “The pricing root cause of the impact of regional driven spending and a continued slowdownevent in 2017 government to the construction awards market revolves around the design

and implementation of the Project Management Offices to in slow, althoug Inflation is expected government and government occur as and if power & water subsid related entities. It will take at least a 12-month window to have 2016 -2% 2017of +1.5% any effective implementation change and process. With this in mind, 2018 looks most likely for a level of recovery, especially when you combine tightening liquidity in the finance markets and the need to structure potential alternative finance for large government driven infrastructure schemes,” Clifton concludes. Faithful+Gould, PO Box 56684, Riyadh 11564,


Market report

jeddah retail and h Supply Construction of the Elaf Galleria completed in Q3, although this increased supply by less than 3,000sqm of quality retail space. Total stock currently stands at 1.15 million sqm. Combining other uses within large retail developments has emerged as a successful method of increasing footfall. This concept of mixed-use development is broadening still further to include other sectors such as healthcare and office space, both of which are included within the Jeddah Park project currently under construction. Some shopping centres are also leasing space to training and call centre operators. This ensures a regular stream of footfall during the day and increases

Hot toPic The post-oil economy, which has seen subsidies cut and taxes introduced, has affected the expenditure of Saudi households. The recent announcement by the government to freeze annual salaries for public sector employees next year will further reduce spending power. Top-level salaries will also be cut by 20% for ministers and 15% for Shoura Council members. The announced municipal fees on retail (up to SAR 300sqm) and restaurants (up to SAR 10sqm) will further reduce retailers’ profitability unless they are passed on to consumers.

Multi-use destinations Retail developments that combine with other uses, such as hospitality, have seen increased footfall.

demand for F&B facilities. Performance Q-o-Q lease rates have remained relatively stable for both regional and super regional shopping centres, with both sectors recording marginal falls of just 1% over Q3. This compares with growth of around 5% that has been experienced in both

sectors over the past year. Signs of the impact of weakening spending power on demand for retail space have started to emerge. Vacancies have increased from 7% in Q2 to reach 10% in Q3. These additional vacancies were mostly in dated shopping centres and those in less prime locations.

current retail supply (2013 - Q3 2016)

Future retail supply (Q4 2016 - 2018)

142K 166K

39K 979K

1.06M

1.07M

1.15M

1.15M

1.19M

1.36M

2013

2014

2015

Q3 2016

Q4 2016

2017

2018

SQM (GLA)

SQM (GLA)

SQM (GLA)

SQM (GLA)

Vacancy rate

12%

-1% Q-O-Q

Q3 2016

2016/2017 OUTLOOK

16 November 2016

SQM (GLA)

change in average rents

10%

Q3 2015

SQM (GLA)

5%

-1%

Y-O-Y

5%

Q-O-Q

SUPER REGIONAL

Y-O-Y

REGIONAL

2016/2017 OUTLOOK

Source: JLL

SQM (GLA)


Market report

ospitality overview Supply Q3 witnessed the opening of two internationally branded hotels: the Movenpick City Star Hotel (228 keys) and the Centro Rotana by Shaheen (254 keys), which add to the burgeoning supply of quality branded midscale hotels in the city. This marks the first property for the Centro Rotana brand in Jeddah, while the Movenpick City Star Hotel is its third property. A further two Movenpick properties are under construction and expected to open within the next three years. The total supply of quality rooms in Jeddah now stands at approximately 9,400 keys. A further 700 keys are expected to open over the next three months. The properties include the Assila Rocco Forte, Ritz-Carlton and Novotel Jeddah Tahlia.

time for an upgrade Existing hotels in KSA have begun upgrading facilities to compete with newer entrants into the market.

Performance Occupancy rates have decreased by 4% compared to the previous year, to 72% YT August. While the first half of the year saw ADRs fall below the same period last year, Q3 is showing stronger results. The knock-on effect of the 2016 Hajj pilgrimage, which took place in early September, is

Hot toPic Administrative delays have caused a number of hotels to postpone their opening dates. Although 2016 has witnessed a higher rate of hotel delivery, there are a number of hotels which have completed construction, but have not yet opened their doors due to bureaucratic delays obtaining licences and approvals. Increased competition has prompted existing hotels to upgrade to compete with recently opened or upcoming properties. Several of the properties that opened more than 15 years ago are currently undergoing or planning to start refurbishment work.

reflected in the YT August ADRs, which increased by 5% compared to the same period last year, to reach $270. The summer holiday period and Eid Al Fitr also contributed to the strong performance of ADRs, which witnessed strong rates during the months of June and July. RevPAR remained unchanged at $196.

current supply (2013 - Q3 2016)

Future supply (Q4 2016 - 2018)

1,100 1,600

700 7,300

8,500

8,600

9,400

9,400

10,100

11,700

2013

2014

2015

Q3 2016

Q4 2016

2017

2018

KEYS

KEYS

KEYS

KEYS

KEYS

occupancy rate

76%

258 USD

YT AUG 2016

2016/2017 OUTLOOK

KEYS

Average daily rate

72%

YT AUG 2015

KEYS

YT AUG 2015

5% Y-O-Y

270 USD

YT AUG 2016

2016/2017

OUTLOOK / ANNUAL CHANGE

November 2016 17


In profile

18 November 2016


In profile

“We’ve been in this situation before, and We’re going to be in this situation again. if you’re not flexible enough as a company to adapt to the situation and the cycle of business, then you don’t deserve to survive” Big Project ME speaks to Engineer Hamad Al Ameri, managing director of Trojan Holding, about the changing nature of the UAE construction industry. Gavin Davids reports

November 2016 19


In profile

i

n June 2016, Trojan Holding, an Abu Dhabi-based local construction conglomerate, announced the launch of a countrywide vocational initiative that would give 100 of the UAE’s engineering students an opportunity to gain some invaluable on-the-job experience at its companies. This was unusual, as one of the first instances of a locally grown, privately owned construction company taking steps to involve the young Emirati population in a way that would stimulate interest in working in the

local construction industry. Targeted at fourth-year engineering students with a GPA of 3.0 and above, the initiative will see local universities put forward ten students every month from June 2016 to March 2017 to spend two full days with Trojan’s team of in-house engineers, where they will get an understanding of the intricacies of working for a construction company, both at head office and on construction sites. At the conclusion of this programme, Trojan will offer the students who demonstrate the right attributes the chance of a one-month internship with the company. The 100 Trojan Young Engineers initiative is the brainchild of Trojan Holding managing director engineer Hamad Al Ameri. While one might see this initiative as something of a token gesture, it quickly becomes apparent

residential experts Trojan’s expertise in the residential construction market has seen it win numerous contracts for Emirati housing developments.

20 November 2016

“There is no way you’ll end up with no projects in the UAE. We’re a very safe and economically stable country, and there’s always growth happening. And where there’s growth, there’s always opportunities for us”

that it is a cause very close to his heart, as he explains to Big Project ME during an interview at his office at Trojan Holding’s headquarters in the Al Mafraq Industrial Area of Abu Dhabi. “The initiative will offer engineering students at universities throughout the UAE the chance to shadow Trojan’s teams as they manage the planning, design and execution process of various construction projects,” he says. “Our main goal is to make a difference in the lives of these students by providing them with a platform that allows them to extend their educational knowledge into the skills and tactics required in a practical, corporate workplace.” “100 Trojan Young Engineers is about more than just the first step on the corporate ladder. It’s about giving back to the community through helping students understand what their


In profile

large-scale thinking Trojan Holding has 25,000 employees working on some of the most high-profile projects in the UAE.

of the UAE, who know how the UAE works and who have the knowledge of the UAE – to work in the UAE as well. Therefore, I’ve started this initiative to start reinvesting in my society.” A civil engineer by training, Hamad Al Ameri started Trojan in 2009 with the launch of Trojan General Contracting (TGC). Since then, the company has grown to include eight subsidiaries in the construction fields, including National Projects and Construction LLC (NPC), which specialises in infrastructure and high-rise projects; Royal Advance Electromechanical Works; Reem Emirates Aluminium & Glass Factory; Hi-Tech Concrete Products; Al Maha Modular Industries; Phoenix Timber Factory; and Reem Readymix. From starting as the first employee of the business, Ameri has seen his operations grow to the point of having 25,000 staff on

future career could hold and exposing them to the fantastic opportunities that a career in engineering can offer.” Giving back to the community is a topic Ameri returns to frequently over the course of the interview. As an Emirati, he is passionate about developing the next generation of construction professionals in the UAE, and determined to play a part in ensuring fellow Emiratis get a fair chance to contribute to the construction industry. “I’ve found that a lot of the engineers who graduate in the UAE don’t actually work in the UAE. Why is this? It’s because a lot of the companies aren’t hiring them, they’re not giving them the opportunities. Of course, a fresh graduate will cost a company, but it’s like investing back into your society. I think it’s time for us to let engineers from the UAE – who know the culture

the payroll. In the relatively short while since it was founded, the business has managed to establish itself in Russia, Morocco, Jordan, Iraq, Afghanistan, the Seychelles and Belarus, while also cementing its place as a major player in the UAE market, specialising in large-scale residential projects. “In 2007/2008, if you remember, there was a trough in the business cycle. It was very bad, and by 2009 there were a lot of companies looking to get out of the market. So we said it is an opportunity now to have a local company that can replace the international companies that have left in the middle of the construction of projects. “So that’s when we started Trojan General Contracting. Within a few years – it’s been almost eight years now – we were at 25,000 workers. What we found when we started TGC was that there was a need in November 2016 21


In profile

every aspect. When we tried to outsource things, there was always a delay, there were quality problems and so on. “We wanted to make our own name, and I felt that the market needed a company that was a turnkey company, a one-stop shop. People just want to talk to one guy – a client just wants to get his property finished, regardless of whether it’s just one villa or a full residential city, or a building. That is why we’ve consolidated as Trojan Holdings and why we have a lot of subsidiaries, with each activity related to construction.” Given the current nature of the economic markets in the region, Ameri’s explanation for diversifying the business makes sense. He says spreading Trojan’s net allows the company and its subsidiaries to win projects and target sectors of the market, keeping the company buoyant in tough times when the business cycle goes down. “We’re happy with the performance of the group in general. We’re doing a great job, and there’s a lot of opportunities in the market. Regardless of that, there’s also a lot of cutting of costs. Everybody knows that the big projects are on hold so far, but with residential and commercial [projects still ongoing], there’s a need in the market. “There is no way you’ll end up with no projects in the UAE. We’re a very safe and economically stable country, and there’s always growth happening. And where there’s growth, there’s always opportunities for us.” To this end, Ameri points to the infrastructure development sector as of particular interest to Trojan Holding in the coming year. “While business has gone down a little bit, infrastructure work never stops. We have our infrastructure arm within the 22 November 2016

creating opportunities Al Ameri is passionate about involving more young Emirati engineers in the UAE’s construction industry.

group, and it helps us get full cities developed, along with working on turnkey projects for clients. It is the arm that we depend on when the business cycle goes down.” Although Ameri is reluctant to discuss financial specifics in great detail, he insists that all targets have been achieved for the year, while the group has had a very good return overall. Despite the turmoil through the year, he remains sanguine about how things have unfolded. “We’ve been in this situation before, and we’re going to be in this situation again. If you’re not flexible enough as a company to adapt to the situation and the cycle of business, then you don’t deserve to survive. That’s why a lot of companies have gone out and we’ve taken the opportunities. “There are very large companies, with huge overheads,

“100 Trojan Young Engineers is about more than just the first step on the corporate ladder. It’s about giving back to the community through helping students understand what their future career could hold”

but we’re a very lean company. We depend on ourselves, we know how to tackle things and keep it clean. There are a lot of people who depend on very highend tools, very high overheads, and honestly I think they’re going to go out of this market if it stays like this for one or two more years. And then it’s going to be for us – the local, lean companies.” However, he acknowledges that companies need to be very selective when it comes to choosing clients and projects, especially when working internationally. With the Trojan group of companies now operating in 11 different countries, Ameri sees this as an opportunity to showcase the best of the UAE construction industry to the world. “I think we [the UAE construction business] have started to grow and go international. We’re taking our know-how, taking our knowledge and taking our commitment as a country as well, and representing it internationally. “You have to be very selective in choosing your client and your projects when going international. Other than this, you have to involve the local companies, that helps you put your foot in the door. Without having the knowledge of the country and the people in it, you will not have success,” he says, adding that Trojan has been working in countries where the local market tends to be smaller or marginal, which in turn allows it to benefit from Trojan’s expertise. Looking at the local region, Ameri says he and his team have been studying opportunities in the GCC for a while. Seeing what countries like Saudi Arabia and Qatar have been going through, he surprisingly goes against conventional wisdom and says


In profile

he sees an opportunity there. “Everybody knows that there are a lot of big companies – construction companies – struggling in those markets. I think that there’s a gap there, and where there’s a gap, there’s an opportunity. I know that there’s a lot of difficulties in those countries in terms of getting projects, but I also think that it’s the best time for us [to enter]. “We are financially strong – those countries need a contractor who is financially strong. I think that almost 60% of the contractors there, they’re too financially unstable to take on huge projects there. We, on the other hand, are ready.”

Coming back to the company’s base of operations in the UAE, Ameri says that while he sees Expo 2020 as an expediter for the local construction industry, especially in Dubai, he also thinks there’s more to the country than just the Expo. “It’s not that if it wasn’t there, we’d end up with nothing. I think that after Expo 2020, we’re going to see that there are a lot of gaps where smaller investors will come in to invest as well. For now, the big developers are developing full cities, but they’re developing landmarks for those cities. The rest has to be completed, and that’s where other people will come in and

invest in them. This is a cycle. “The Expo will be an expediter, but it’s not everything. I’m sure that the UAE is going to win a lot of expediters over the next few years, and we will continue [to prosper].” As part of his plans for the future, Ameri reveals that while Trojan and its subsidiaries will continue to focus on its traditional strengths of residential and commercial development, the group is looking to explore new avenues. “We’re also studying the opening of things that we haven’t already opened – the oil & gas sector, the power sector. We’re studying those opportunities

to see if it’s feasible for us to go for it. Personally speaking, we’ve been working as a family from the start. I want to keep this family together. I want this family to be bigger. I don’t want my people to think that they’re ‘coming to work’. Instead, I want them to come in and say, ‘I’m here on a mission. I come in here for my family and to finish something for this country.’ “I would love to link my name with the growth happening in the UAE. I’m proud to be a part of the country’s growth, and I hope I can represent it everywhere that deserves to be associated with the name of the UAE,” he states passionately.

“I think that after Expo 2020, we’re going to see that there are a lot of gaps where smaller investors will come in to invest as well. For now, the big developers are developing full cities, but they’re developing landmarks for those cities. The rest has to be completed, and that’s where other people will come in and invest in them”

gaps in the market Mega-projects like Expo 2020 will open up gaps in the market for smaller investors to come in and invest in associated projects.

24 November 2016


Site visit

The hidden

26 November 2016


Site visit

Gem

Big Project ME heads out on a road trip to Ajman to take a look at Al Zorah, a 5.43 million mixed-use development. Gavin Davids reports

November 2016 27


Site visit

W

ith an area of just over 260 square kilometres, Ajman is the smallest of the seven emirates that make up the UAE. As a result, while the likes of Dubai and Abu Dhabi dominate international headlines for their

projects and developments, to the outside observer it can look like not a lot happens in Ajman. That perception is unlikely to last for much longer, however. The government of Ajman has spent the last few years concentrating heavily on the development of the emirate’s real estate sector. In fact, in 2004, Ajman was the first emirate in the UAE to offer 100% freehold to global investors. That generated a tremendous amount of interest in the emirate as an investment destination, but unfortunately

Project DetAils Project Name: Al Zorah Project size: 5.43 million sqm Project type: Mixeduse development landscape and infrastructure Design: Dar Al Handasah Masterplan: Solidare International

plans stalled following the financial crisis in 2009, and the slow recovery that followed. Now, however, things have certainly turned around, and earlier this year the Real Estate Regulatory Agency – Ajman (ARRA) said that about 3,000 residential units will be delivered by the end of the year. Meanwhile, 12 new real estate projects will be completed in freehold areas of the emirate, and these freehold areas are sparking the most interest from investors. With real estate prices rising and

Project component

contractors

Architects

consultants

land Area

BUA

Pavilion

J&D Contracting

Annabelle Kassar

ILEX

31,192 sqm

3,500 sqm

the oberoi Hotel resort, Al Zorah

Besix

Piero Lissoni

NORR Group/ Isometric

105,000 sqm

40,000 sqm

lUX* resort, Al Zorah

TBC

Denniston

NORR Group

90,694 sqm

44,000 sqm

Golf Villas

Prestige

NAGA

N/A

69,600 sqm

25,119 sqm

Golf estates

TBC

Maria Group

Rafiq Al Khoury

152,096 sqm

36,168 sqm

Golf course

Proscape

Nicklaus Design

N/A

705,971 sqm

5,500 sqm

General landscape

Proscape/Hills & Fort

ILEX, Cracknell, EDSA

N/A

604,691 sqm

-

Off the mark The Al Zorah development is the first project Solidare has undertaken in the UAE.

28 November 2016


Site visit

Amongst the elements The golf course and residences around it have been built with the surrounding natural environment in mind.

value for money becoming more difficult to find, investors are now looking at what Ajman has to offer. This shift in attitude towards the smallest emirate is perhaps best manifested in the Al Zorah project, a massive mixed-use development coming up on the outskirts of Ajman city. Covering an area of 5.43 million sqm, the project is set to place Ajman firmly on the map. Owned by Al Zorah Development, a 50/50 joint venture between Solidare International Limited and the government of Ajman, the project combines intricate master planning with the natural environment to create a distinctive luxury destination that will attract visitors and residents from across the region, if not the world. Situated in Ajman’s mangrove forests, alongside more than a kilometre of beachfront, the development is divided into five distinctive areas that will cater to a variety of needs, explains Wissam Rabah, the design and development director for Al Zorah. “The project is a mixed-use development with a strong emphasis on tourism,” he tells Big Project ME during an exclusive tour of the site. “The qualities of the site would encourage such an approach, given that the total land area is 5.43 million sqm, and the beachfront owned

“We thought that we could do a lot with the natural beauty of the place. Our initial vision was to develop it, while preserving its natural essence. If you see the marinas and the canals, you’ll see that the beach is protected. It’s small things, but it’s all towards protecting the natural beauty of the site”

by Al Zorah is 1.6km long.” Al Zorah is the first project Solidare has embarked on in the UAE, and as Rabah explains, the location of the site played a large part in the company’s decision to dip its toes into the UAE market. “The reason why Solidare was interested in this project in particular was because of the high value and attractive qualities of the site. Mainly, it was the natural qualities of the site. This is a very rich site, where we have natural beachfront that is protected and not damaged by any reclamation or marine works, and we have an internal mangrove forest that has an area of about two million sqm. “This is also a protected area that is home to several species of bird, fish and other marine life. Al Zorah – together with the government of Ajman – are protecting it and building around it,” he explains. The site is divided into five areas: The Fairways – an 18-hole international golf course designed by Nicklaus Design; The Shores – the beachfront area that is a mix of resorts and low density residential projects; The Avenues –the leisure and entertainment district; The Coves – a waterfront promenade area that is also a residential and hotel district; and finally, The Gates – which lies closest to the entrance of Al Zorah from Sheikh

Mohammed Bin Zayed Road. It is planned to be a mix of retail facilities and high-rise towers. Rabah explains that The Gates will be the last part of the project to be developed, as the focus is currently on developing The Fairways, Shores and Coves areas. With the golf course operational since December 2015, work is now underway to bring online the facilities and residences around it, he says. “In addition to the golf course, this sector includes a residential component. It’s a mixture of residences, townhouses and apartment buildings. The apartment buildings range from six to 14 storeys in height. They’re to the back and they overlook the golf course above the villas and townhouses. “The residential components are planned to be like gated communities that provide a privileged environment for the people who live within. They include landscaped environments, play areas for children, pedestrian walkways and so on, all within a safe and protected environment.” In addition to the residential sector, the developer is also building a new golf clubhouse that will cater to the needs of both golfers and residents in the district. Adjacent to the clubhouse will be a wellness centre intended to November 2016 29


Site visit

Keeping things low-key Al Zorah made a conscious decision to only build lowto-medium-rise buildings in The Shores area.

provide visitors with rejuvenation treatments and programmes. One of the major concerns when it came to developing the project was ensuring that the mangroves and surrounding environment remained unspoiled. Given the proximity of the golf course to these elements, Iman Dana, CEO of Al Zorah, explains that no expense was spared to ensure that the development was carried out as carefully as possible. “We had consultants come in to do environmental impact assessment studies, and we’re still following that. The golf course was set naturally against the mangroves. We have two million sqm of mangroves, next to a million sqm of green area,” he tells Big Project ME, speaking in his office overlooking a vista of creek, mangroves and flamingos. “We designed the golf course in such a way that all the holes are adjacent to each other, so that there’s no real estate development between the holes. When we decided that the real estate would be around the golf course, we decided on a limited number. “So there are 800 units in total – 200 villas and 600 apartments. We’ve kept a nice area in the middle, where we’ll build the golf clubhouse and the wellness centre, but it is in the middle of three million sqm of greenery.” 30 November 2016

“The residential components are planned to be like gated communities that provide a privileged environment for the people who live within. They include landscaped environments, play areas for children, pedestrian walkways and so on, all within a safe and protected environment”

Construction of villas and townhouses is well underway, with Rabah stating that the first phase of villas will be delivered in the first quarter of 2017. The design works of the apartments are in progress, but no announcement has been made about the launch date, he adds. The other district currently under construction is The Shores, which will house resorts and low-density residential apartments and villas with direct access to the beach. “The Oberoi is the first resort that we’re building and will see construction completed by the end of the year, with the opening the first quarter of 2017. It has 113 suites and villas, and is a top luxury resort that we hope will be a special product in the region. It will be like a hideaway that will welcome people that want to relax and not have a busy time. “Next to it, we’ve started construction on the Lux* Al Zorah. It has 189 rooms, suites and villas. This resort is targeted at families and the ‘energetic crowd’. These are the two that are currently under construction, and next to them we have residential buildings,” he outlines. “Then we have what we call ‘residential resort living’, where you’re living within the resort environment, but you own your

own apartment. Some of these buildings will be serviced, while others will be directly owned.” Directly behind this area of the Al Zorah development is what Rabah and Dana call a ‘linear park’. It is intended to act as a buffer between the low density zone and the medium density area directly behind the beachfront area. This area will be the commercial spine of the entire project, with space provided for a mall development and the construction of mid-sized buildings. This spine will continue up along the development, culminating around a central marina that will be the project’s entertainment space. “This is where we plan to have four-star resort hotels, and where the ground floor will be very animated, with F&B outlets and retail available [for visitors]. The waterbody will also have a certain theme and it will be an attraction for all of Al Zorah’s residents and guests, and for residents in the surrounding area as well,” Rabah says. “In this area, we’re talking mainly about offices and retail. Retail will be on the ground floor of this commercial spine, while the buildings around it will be a mix of offices and some residential.” The fifth area of the development is the Creekside element of the project, The Coves.


Site visit

Three marinas will be built, with projects overlooking the creek that flows through the mangroves. The first marina will be operational by the end of the year, and it is expected that boat owners will be able to sail up the creek and dock their boats right up to the development, which is a mixture of hospitality and residential. “The first thing we did when we started the design of the project was to appoint an international consultant to do an environmental impact assessment for the whole site. This included a detailed survey for the mangroves area, and they defined the guidelines for the entire construction process,” says Rabah. “One of the early elements was to build the protection line on the creek, whereby we defined the edges and where the buildings will be built. We also

built platforms where we planted more mangroves and encouraged them to grow naturally. “On the other side, during the design and build of the golf course, we maintained a buffer zone and areas that we called ‘natural areas’. There, we encouraged existing nature to grow,” he asserts, adding that the landscape of the golf course is made up of local flora. This is clearly a project that has had immense thought and planning go into it. Imad Dana tells Big Project ME that the various elements of the project coming together is the culmination of a vision that began almost a decade ago. “The main reason we came to Ajman was because of the site itself,” Dana relates. “It’s a hidden jewel that we discovered in the 2007/2008 period. It

“We’re proud of what we’ve done here, but at the end, we need people to come here and appreciate it. We did it for people to come and visit, this is really what it’s all about”

was untouched due to the natural beach, and you had the canals, and most importantly the mangrove forests.” “We thought that we could do a lot with the natural beauty of the place. Our initial vision was to develop it, while preserving its natural essence. If you see the marinas and the canals, you’ll see that the beach is protected. It’s small things, but it’s all towards protecting the natural beauty of the site.” Now that construction on the golf course residences and beachfront area is underway, the next step is to have third-party investors come in and begin development of their own projects, fuelling the growth of the entire project. Dana explains that this is why completing Phase One of the project is so important.

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November 2016 31


Site visit

“Before the crisis, we had a lot of interest in the project. When we first launched the project, we sold a lot of land in a few days. Then obviously the crisis came and we had to change a few things to make it more ‘human-scale’ and user-friendly. “What really helps us now is that Phase One is about to be operational, within the coming two months. We opened the golf course almost a year ago, we’ll open the Oberoi in two or three months, and we’ll start handing over the first part of the golf villas. All of this has generated interest. “Why we keep talking about Phase One is because it moves the project from a preparatory phase – where we’ve been preparing the infrastructure and things – into an operational phase. From there on, it’s up to the market.” With everything now in place, Dana acknowledges that it is now up to the market to take the initiative and invest in the Al Zorah development. However, he points out that there are a number of factors in its favour, which will surely lead to the success of the project. “The Ajman government is involved with this project. They are the owners, and HH

Active involvement Ajman’s government is actively involved in the development of the Al Zorah project.

Sheikh Rashid Bin Humaid Al Nuaimi is the chairman. They have an active involvement with the company, and the government has issued a decree granting the project freezone and freehold status. “Secondly, it’s the biggest project in Ajman in terms of area, and I think it’ll impact the economy in a positive way,” he asserts. Two types of investors are likely to target the Al Zorah development, Dana says. The first kind are the ones who bought

land prior to the slowdown in the market. These investors will see the completion of Phase One as a spur to start their own developments, having patiently bided their time. But the completion of Phase One has also brought in new investors, curious about the project and the impact of the golf course – which has been recognised as one of the best in the region – and keen to form joint ventures for projects within the development. This is an important factor,

Attracting investment Now that Phase One of the project is nearing completion, investment interest is expected to increase quickly.

32 November 2016

Dana stresses, pointing out that the course was ranked in the top 10 for the MENA region by Golf Digest within two months of opening. That recognition has led to full houses on weekends, which in turn signifies potential for further growth. “We’re full on the weekends, and 90% of the people come from Dubai. During the weekdays, we’re picking up as well. Earlier, because the infrastructure was not completed, the numbers were lower. But we believe that now, when we open the Oberoi, when we open the marina in January, more and more people will come. “And for the investors – the villas that were sold, they were sold to people who want to use them, to end users. That’s great, because we want and need to create a community. “I think we’re close to closing the first chapter – which is the preparation and hard work that we’ve done, and the money that we’ve spent. We’re proud of what we’ve done here, but at the end, we need people to come here and appreciate it. We did it for people to come and visit, this is really what it’s all about,” he concludes.


Marc Evertse, SOHAR Executive Commercial Manager

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An InvItAtIon to ChAnge

The Emirates Green Building Council’s ‘Energy and Water Benchmarking for UAE Hotels’ report throws up some interesting revelations about the hospitality sector’s urgent need to improve sustainability efforts 36 November 2016


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November 2016 37


Sustainability

A

t the end of September, Emirates Green Building Council (EmiratesGBC) released the findings of a first-of-its-kind report – ‘Energy and Water Benchmarking for UAE Hotels’. The report makes for interesting reading, as it details an in-depth analysis of the UAE’s hospitality sector’s sustainability initiatives. Collated over a three-year period between 2013 and 2015, the study draws on information gathered from 46 voluntarily participating hotels across the UAE, focusing on their property’s general, physical and operational characteristics, as well as their annual energy and water consumption data. The key findings of the study are that UAE hotels have unequal energy and water performance, with high potential for significant savings using viable and affordable existing technologies. This correlates with a recent report that Dubai’s five-star hotels consume up to 225% more energy compared to their counterparts in Europe. There is a strong need to replace old fixtures and ensure maintenance of water systems, with laundry services and landscaping contributing heavily to water use intensities. The study also finds that poorly performing hotels consume three times the amount of energy and 7.4 times the amount of water compared to the best performing hotels. More recently built hotels were found to benefit from newer technologies and efficient design as well as stringent codes 38 November 2016

THE EmirATEs GBC WorkinG TEAm inClUdEd: Majd Fayyad – Technical Officer Marie-Helene WestholmKnebel – Senior Technical Officer Lora Shrake – Operations Director Sheena Khan – Education & Awareness Officer Support was also provided by: all participating hotels; Taka Solutions; M.A.H.Y Khoory & Co LLC; Ajman Tourism Development Department; and Sharjah Commerce & Tourism Authority.

BACkGroUnd of THE sTUdy 46 hotels from across the UAE took part in the study voluntarily. Of the 46 hotels, 25 are eco-certified hotels, 25 have installed energy efficiency features and nine are connected to the district cooling network. An expert panel including members of EmiratesGBC evaluated the parameters based on energy and water consumption data for three years, and the hotels’ general physical and operational characteristics. The study analysed the Energy Use Intensity and Water Use Intensity of the hotels.

Best practices Saeed Al Abbar says that the EGBC study will enable the UAE’s hospitality sector to observe best practices in energy and water efficiency.

and regulations, underlining the need for older properties to consider retrofit as a solution to reduce their carbon footprint. “The benchmarking report is a first-of-its-kind study in the UAE aimed at establishing quantitative data on the energy and water efficiency of buildings within a key sector of the economy. The study aligns with the UAE’s two-pronged goal of driving best practice and growth in the hospitality and tourism sector, as well as being a global leader in sustainable development,” Saeed Al Abbar, chairman of EmiratesGBC, said during the presentation of the report. “The findings will serve as a strong indicator that will enable the hospitality sector to reduce its carbon footprint by improving water and energy performances. We are thankful to the participating hotels for their commitment and resolve to enhance their energy and water use efficiency standards. “The comprehensive study will enable the hospitality sector to observe best practices in energy and water efficiency, which also make business sense in the long term with an increasing number of travellers being highly discerning

“The study will enable the hospitality sector to observe best practices in energy and water efficiency, which also make business sense in the long term with an increasing number of travellers being highly discerning about the sustainability standards of the hotels”


Sustainability

kEy findinGs: Unequal energy and water performances across UAE hotels. Energy consumption

“The findings will serve as a strong indicator that will enable the hospitality sector to reduce its carbon footprint by improving water and energy performances”

higher in summer months due to high demand for air conditioning. EUI, an internationally acceptable norm for benchmarking of hotels, varied between 104 and 721kWh/sqm per year across the hotels; a median UAE hotel has

about the sustainability standards of the hotels. Driving energy and water use efficiency standards in hotels will help differentiate them in the marketplace and also make them active partners in achieving the sustainability vision of the government,” he added.

average normalised EUI of

ongoing initiative

283kWh/sqm per year.

The initiative is part of EmiratesGBC’s ongoing efforts to reduce the carbon footprint of the UAE’s hospitality sector, and is based on feedback received from hoteliers on the high cost of retrofitting existing properties, lack of benchmarking tools and lack of relevant indicators to compare properties against each other. EmiratesGBC also reached out to tourism bodies in the UAE and hosted workshops on green hospitality. An expert team at EmiratesGBC analysed the energy use intensity (EUI) and water use intensity (WUI) of the participating properties to understand their performance. They also compiled

WUI (Water Use Intensity) per guest-night ranged between 30 and 399 Imperial Gallons/ guest-night per year. A median UAE hotel has an average WUI of 136IG/ guest-night per year. Poorly performing hotels consume three times as much energy (in kWh/sqm per year) and 7.4 times as much water compared to the best performing hotels. High potential for significant savings with viable and affordable existing technologies. Significant and negative

Key eco-label programme in the correlation factors to identify the UAE. Recognised by the World key indicators that may influence Tourism Organisation and United the consumption patterns of the Nations Environment Programme hotels vis-à-vis their individual (UNEP), Green Key is a non-profit characteristics. These will and independent programme, serve as the benchmark for the and is the largest global eco-label specialised hospitality training relating to accommodation. modules to be launched by Globally, tourism contributes to EmiratesGBC later this year. 5% of total global carbon All participating hotels dioxide emissions. have been provided UAe’s The United with individually green hospitality Nations has tailored Landscape as of end 2015 declared benchmarking 2017 the scorecards 41 properties certified International that will help to Green Globe Year of them make 25 properties certified Sustainable enhancements to Green key Tourism for to their energy 4 properties certified Development. and water use to Earth Check The protocols, and will benchmarking help support them exercise and follow-up in their strategic initiatives action by EmiratesGBC is just in – both technical (involving time to support the global focus on retrofits or audits) and behavioural promoting best green practices in (education and training). the tourism and hospitality sector. The report and the training EmiratesGBC will update, fine programme to be unveiled build tune and repeat the benchmarking on EmiratesGBC’s credentials as study on an annual basis. the official operator of the Green

Breakdown of properties by star rating

correlation between the

17%

year of build and the water consumption, which

3 star and less

necessitates a deeper

proper maintenance of water systems. Significant impact of

100% 90% 80% 70%

focus on replacement of old fixtures and

Breakdown of properties by general services

60%

57% 5 star

26% 4 star

50% 40% 30%

laundry services and

20%

landscaping on water

10%

use intensities.

Conference facilities

Staff accommodation

Gardens/ landscaping

November 2016 39


highly competitive environment The highly competitive environment results in products and services becoming commoditised, putting downward pressure on prices.

Comment

Zander Muego

beware of the false economy

Zander Muego, director of Thomas & Adamson, a UAE-based cost consultancy, explains the pitfalls of choosing cost over value Dubai has changed dramatically over the last three decades, becoming a major business centre with a more dynamic and diversified economy. Dubai enjoys a strategic location and serves as the biggest re-exporting centre in the Middle East. We ourselves have set up offices here, having identified the exceptional opportunity that the city offers both national and international companies. The perfect recipe for a successful economy, right? Crash aside, Dubai has seen huge economic success. But now is the time to look 42 November 2016

ahead and assess the longterm consequences of the way in which we have become accustomed to doing business. Put simply, using the lowest cost as the determining factor when procuring goods or services can create false economies which do more harm than good. The problem Quality over quantity is a simple and well understood concept, but is difficult to reconcile with today’s price-sensitive corporate environment. Dubai is an attractive place to do business, with low barriers to entry and significant business

opportunities, and in many industries this translates into a very competitive marketplace. The high levels of competition increasingly result in products and services becoming commoditised, putting downward pressure on prices. But while it makes commercial sense to capitalise on competition and the related low costs, treating certain products and services as commodities can often result in longer-term issues and costs that far outweigh the initial cost savings. The construction industry is a great example, with significant construction projects both

currently progressing and in the pipeline within the UAE. The size and scale of these can be significant in comparison to many other locations throughout the world. These projects attract competition from both multinationals and established local businesses, and competition is fierce. In construction, as in many other industries, there are tensions within the project objectives that need to be considered when developing procurement strategy. Tradeoffs are required to find the right balance between the various stakeholder objectives.


Comment

“Selecting the lowest priced tender might initially appear to represent good value, but will this provide the most appropriate solution for your business?”

As part of an international business, I see different approaches across different regions, and in the UAE cost considerations are often weighted far more significantly than other factors. But this focus on minimising initial capex is often misaligned with the wider objectives of the project stakeholders. With commercial developers, for example, there can be significant financial incentives to get projects finished quickly, thus accelerating the income stream that comes from the completed asset. Conversely, delays can increase interest

payments and affect commercial viability. This can quickly offset the apparent capex savings made from selecting contractors and suppliers with the lowest tender cost, but who turn out to have insufficient capacity or resources to deliver on time or to the desired level of quality. This is particularly relevant for complex projects in the UAE, where basing the final selection on price point alone will often result in: • Project delays, as the tenderer struggles to mobilise subcontractors and procure long-lead materials, usually due to a lack of cash

flow and administrative delays in procuring bonds and guarantees • Poor quality control, as less qualified and cheaper site management personnel are deployed to the project • Demotivated site operatives, often as a result of being overworked or receiving delayed salary payments • Unprofessional (or nonexistent) HSE protocols, increasing the risk of injury (or worse) to those involved in the project, with knockon effects on project and developer reputation • Increased installation and quality issues, resulting from all of the above and causing prolonged snagging and commissioning durations, ultimately delaying handover and impacting end user satisfaction levels The long-term implications of these issues are conceptualised in the term Cost of Poor Quality (COPQ), which is the cost of providing poor quality products or services. These costs can have an impact on all levels of the supply chain, but have a particular impact on clients and end users, who must live with the issues over the long term, plus the resulting reputational damage. Tangible Actions Determining procurement strategy and ultimately product or supplier choice needs to be based on a wide range of factors. How you weigh up the importance of these different factors will be based on your firm’s priorities and strategy. Businesses cannot lose sight of the importance of using the correct balance of criteria to fit the strategic direction of the business. Selecting the lowest priced tender might initially appear to represent good value, but November 2016 43


Comment

will this provide the most appropriate solution for your business? Have the long-term implications been factored into the evaluation process, and are there whole-life cost implications between different options that need to be considered? We recently completed a very demanding project in the hospitality sector in Dubai, during which this very issue needed to be addressed. The project had exceptionally challenging time constraints but also had a very demanding budget. After a fast-track competitive tendering process, there were two clear front-runners to take on the main contractor role – one that had proposed a particularly competitive price, and another that was more expensive yet significantly more experienced in delivering

“Businesses must adapt their procurement strategy to reflect the complex business world that we live in, which in turn will help achieve sustainable, long-term profitability�

this specific type of project. Ultimately, in selecting the contractor, the likelihood of achieving the aggressive completion date together with the track record of producing the desired quality was factored into the analysis, and the more expensive contractor was awarded the project, with savings achieved in other areas of the project to offset the additional expenditure. The result has been a successful project, completed quickly and to a high level of quality, with minimal snagging issues and an early launch of the venue. This is just one of many examples Thomas & Adamson has of the benefits that come from taking a holistic view on vendor selection and related procurement strategy. While cost is almost always an important consideration, and in some

cases is essential to project viability, it is also important to ensure that the right level of technical competence, product quality, personnel and service levels exist as part of the offer. In summary Quality over quantity, or in this case cost, is an age-old lesson that too many of us forget when making important procurement decisions. While a cost focus may support the short-term financial viability of any given project, there can be significant wider implications that will ultimately affect the success of any investment in the long term. Businesses must adapt their procurement strategy to reflect the complex business world that we live in, which in turn will help achieve sustainable, long-term profitability rather than focusing purely on short-term profit.

adapting to survive Businesses must adapt their procurement strategy to reflect the complex business world that they now live in.

44 November 2016


Construction technology

Introducing a new reality Construction technology has seen the integration of virtual and augmented reality into the project site.

THE TECH FACTOR

Big Project ME speaks to the experts about the future of construction technology and how that will affect the way the industry operates

46 November 2016

Construction technology has seen tremendous progress over the years, with the introduction of Building Information Modelling (BIM), the steady integration of virtual and augmented reality, and the use of converged security systems and drones on construction sites.

In fact, the benefits of these new systems and devices have been so well received that governments and developers are now beginning to acknowledge the effectiveness of implementing them while working on a development. The first big shift that happened in the industry was the move from

using 2D drawings and models for projects to using 3D technologies, says Suhail Arfath, head of Autodesk Consulting Middle East. “We’ve noticed that there is a dependence on the usage of BIM, where it becomes easy to visualise, simulate and plan a project from its conceptualisation to implementation phase. BIM has also helped diverse project teams to collaborate on a real-time basis, minimising expensive reworks, significantly reducing project costs and improving efficiency.” He says that he sees the onset of cloud and mobile technologies


Construction technology

ushering in another disruption in the industry as it moves towards a new way of working and managing projects. Speaking about the progress that BIM has seen, Charles Dunk, associate director of the Immersive Technology Group, UAE & Oman at AECOM, says that while it is well established in the architecture and building sectors, civil engineering is yet to fully embrace it across the construction lifecycle. “Large infrastructure projects make use of geographic information systems (GIS) to collaborate with stakeholders

and statutory authorities, so a GeoBIM approach needs to be established for these projects. Work using GeoBIM has started and is expected to grow over the next 10 years. “Traditional BIM reduces risk for all parties and makes prefabrication a viable option, further reducing time and costs while improving safety and quality. However, consultants, clients and contractors around the world still have many steps to take before realising the dream that is PAS-1192 and Virtual Design and Construction (VDC).” But it’s not just the implementation of BIM that deserves attention. Nour Kassassir, CIO at Parsons MEA, addresses the other aspects of construction technology that are used to optimise the lifecycle management of projects through team collaboration. These include requirement management systems, mobile field tools for facility condition assessment (FCA), and project management information systems to monitor, measure and manage project schedules, scopes and budgets. “We have used these technologies on many roads, bridges, airports, land development, buildings and water projects in GCC countries. Such technologies have proven themselves cost-effective by allowing consultants, contractors and the supply chain to bring the work where the production staff is, instead of bringing the production staff to where the work is. “Moreover, mobile technologies that are specific to the construction industry, such as the field defects tracking system, have allowed field staff to be more productive. These technologies have made data available at the fingertips quite literally of project staff, which has

“Ubiquitous access to the internet, wireless email, field and material inspection apps, defects tracking and management apps, GPS and wayfinding apps, and other construction field-mobile apps for iPads and tablets have been designed to optimise the collaboration process between construction field staff and the office staff”

enabled swift, fact-based decisions and has avoided unnecessary delays to project schedules.” Mike Abrahim, buildings development director at Parsons MEA, also shares his thoughts on several other technologies that have been introduced in the last few years which he believes have been game changers for the industry. “Technology like high definition surveying (HDS) scanning systems are capable of performing 360-degree corridor surveys at more than 50 miles per hour. In fact, combining HDS technology and drone surveying could certainly enhance what these tools can accomplish for the architecture, engineering and construction industry. “Even things like 3D concrete printing could reduce the time required to produce a critical construction component by several orders of magnitude, from weeks to mere hours. Dubai was actually one of the first cities to experience such a technology earlier this year with the launch of the first 3D printed building.” While increasing efficiency is one of the main objectives of new construction technology, improving the connection and coordination between those in the field and in the office is another. Arfath notes that with the onset of cloud and mobile technologies, the entire construction process is slowly moving towards becoming more virtual. In fact, he points out that in most markets, construction workers use mobile devices on-site to implement real-time improvements. Kassassir also agrees that remote or offline access to the same construction data that can be accessed from the office is paramount to improving collaboration on construction projects. “Ubiquitous access to the

November 2016 47


Construction technology

internet, wireless email, field and material inspection apps, defects tracking and management apps, GPS and wayfinding apps, and other construction field-mobile apps for iPads and tablets have been designed to optimise the collaboration process between construction field staff and the office staff. “But the proper implementation of any technology requires the effective focus on the three Ps — people, process and platform. A mature, defined process, supported by well-trained people and enabled by a mature platform, will yield the inevitable result of effective connection and coordination between any collaborating parties, as well as construction field and office staff.” Development of software and devices that could help improve health and safety on-site is another area of focus for specialists and developers. Arfath says that in addition to unmanned aerial vehicles becoming increasingly cheaper and easier to fly, they are now capable of carrying equipment ranging from small GoPros to more expensive digital SLRs and video cameras which help monitor construction sites. “Autodesk is now utilising drones to help design and develop maps from an aerial perspective. In hindsight, a drone can capture an aerial perspective of a building, then Autodesk ReCap 360 can stitch the images together to form a 3D model, capturing the building’s exterior clearly,” he adds. Dunk, however, stresses that when it comes to health and safety, one must not solely rely on technology. For him, the golden rules have always been eliminate, reduce, isolate and control. “The best way to reduce accidents is to eliminate hazards. If the hazard can’t be removed, then exposure to them should

48 November 2016

“Large infrastructure projects make use of geographic information systems (GIS) to collaborate with stakeholders and statutory authorities, so a GeoBIM approach needs to be established for these projects. Work using GeoBIM has started and is expected to grow over the next 10 years”

be reduced. Hazards are isolated and controlled using personal protective equipment (PPE) or other methods. So the best way to reduce accidents is better procedures rather than better technology. “An example is roof construction, where falls from height pose a big risk. To eliminate fall hazards, roofs are constructed at ground level and craned into position. HSE is a very human issue and while technology can help, education and procedures will always be important. “BIM and 4D technologies help contractors plan their work effectively, if involved early in the design process. Immersive technology such as virtual reality (VR) can also be used for training. Augmented Reality (AR) can overlay data to the real world, possibly providing HSE information for site workers. However, the distraction could cause more issues than it fixes.” Despite the rapid evolution of these gadgets and applications, construction technology faces a number of challenges. Kassassir says that perhaps one of the biggest roadblocks is that once an application is developed or launched, it takes a lot of time and effort to change. “In today’s world, we need to be able to respond to changes in a timely manner and to provide solutions that suit our clients’ needs. By its very nature, construction technology requires time and financial resources to change; this might be one of the challenges that software developers need to take into account by always looking for ways to make technology respond quickly to customised needs.” Adding to that point, Dunk says that open source software is putting pressure on software developers, which is why many

companies are championing data storage and cloud computing where the profits are high. “Getting software developers to include features in their offerings that contradict their profitability is difficult. It is also challenging for software developers to work with their competitors so communities that develop cross-platform file formats help bridge the gap. “The bespoke nature of construction and projects makes it difficult for developers, consultants and software developers to predict future technology needs. BIM is a great tool for all players in the consultant-contractor-clienttechnology provider group to rally behind, and invent tools that drive innovation across the construction lifecycle for the benefit of clients, owners and users.” While the industry and developers need to find a way to iron out these issues, the expectations for future technology are exciting for construction professionals. The trio believe that the key is digitisation, and that in the near future the industry will see paper systems continue to be supplanted by digital systems. Dunk adds that immersive technology may start to be called mixed reality and be used to explore designs, support investment, manage construction and augment facilities management by BIMsavvy clients and developers. “Standards and procedures for digital workflows will continue to be developed by professional institutes around the world. I also think the growing influence of China and India will see their standards, procedures and technologies migrate into the West and emerging economies. Additionally, automation and prefabrication will continue to grow for contractors,” he concludes.


For more info Fila Middle East - Office 2705, Fortune Tower, JLT, Dubai Ph : +971 44 542 642, filamiddleeast@filasolutions.com


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high attendance numbers expected The 2016 edition of The Big 5 show is expected to attract 75,000 visitors.

The Big 5 2016 Preview

The region’s largest construction show is expected to attract 75,000 visitors

Dubai’s construction industry knows no standstill. Over 3,700 projects are currently ongoing across the emirate, with a total estimated value of $400bn, fuelled by a growing population, the tourism sector and strategic government investments like the Dubai Plan 2021 and the Dubai Expo 2020. From Nov 21 to 24, The Big 5, the largest, most influential and renowned construction industry event in the Middle East, will be back at the Dubai World Trade Centre to capitalise on these growing market opportunities. The Big 5 2016 is expected to attract 75,000 participants and host over 3,000 exhibitors from around the world. “No other show offers the chance to meet and network with so many key decision-makers and industry professionals, 50 November 2016

sourcing thousands of products from international and local manufacturers,” event director Josine Heijmans says. In order to facilitate business opportunities while effectively responding to the current needs of all construction industry professionals, the 2016 edition of The Big 5 will welcome attendees with a brand-new floor plan. This will be clustered in five product sectors: Building Interiors & Finishes, MEP Services, Building Envelope & Special Construction, Construction Tools & Building Materials, and Smart Building & Design technologies. Alongside the exhibition, the event will offer 30 live demonstrations and 75 free CPD-certified workshops unveiling the industry’s latest trends, innovations, challenges, opportunities and best practices.

“No other show offers the chance to meet and network with so many key decision-makers and industry professionals, sourcing thousands of products from international and local manufacturers”

The workshops are divided into six agendas to meet every construction professional’s needs: Technology in Construction, Architecture and MEP Services, Safety and Logistics, Sustainability is the Future, Business and Marketing Strategies, and Project Management. Also, on Nov 22, The Big 5’s Excellence in Construction Summit will gather 500 industry leaders to discuss current and future trends in the construction sector in Dubai, the GCC region and beyond. The Dubai Economic Council (DEC) announced its strategic partnership with The Big 5 for the organisation of the Summit. To find out more about the event, visit www.thebig5.ae Register now and save the AED 150 entrance fee https:// register.thebig5.ae


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RS Group

The RS Group, with business interests in Formwork & Scaffolding, Technical Contracting and General Trading, has been successfully enabling construction since 1989 across the Middle East and Africa. The group has built an excellent reputation among major contractors and engineering consultants by consistently delivering reliable solutions that meet critical project requirements with the highest standards of quality, safety, design, reliability, sustainability, efficiency and cost effectiveness.

52 November 2016

Over the past three decades, operational activities of the RS Group have steadily grown and expanded in scope to include manufacturing, sales, rental, engineering and design, site support services, equipment maintenance, general trading, formwork erection and dismantling, to support its customers in the construction industry. Further strengthening its credibility as an Industry Trusted Partner for Innovatively Engineered Solutions, the RS Group owns and operates one of the most advanced formwork

manufacturing and fabrication facilities in the region. The trading activities of the RS Group that were initially started to support the business activities of its affiliate companies have today branched out into fully fledged building materials supply and distribution, covering a range of products servicing the needs of the construction industry. Throughout all construction phases at every step of the customers project, RS Group provides expert technical contracting advice and reliable assistance through a team

of highly experienced and skilled site personnel who are responsible for running projects on a day-to-day basis. At Big 5, RS Group will be represented by its member companies Golf Scaffolding Factory, in association with Perfect Steel. It will showcase the Group’s expertise in Formwork & Scaffolding for diverse construction applications ranging from infrastructure, malls, buildings, towers and hotels. The systems on display have been successfully used in multiple projects across continents.


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Fila Fila, the market leader in surface care solutions, looks forward to welcoming you at its stand at the Big 5 to discover its full range of award-winning products for surface protection, maintenance and for the best finishes. Meet with our Dubai team between 21-24 November at the Dubai International Convention and Exhibition Centre, Stand Maktoum A111, and learn more about our topselling products in the region: • FILAMP90 ECO PLUS, a natural effect stain protector, is ideal for natural stone, like marble and granite, with shiny, glossy, brushed, matt fine polished finishes and polished porcelain tiles. An eco-friendly treatment, FILAMP90 ECO PLUS is free from hydrocarbon

solvents. And as it is a waterbased product, it stands up to residual humidity and can therefore be applied just 24-48 hours after initial washing, making for quick treatment with time savings of up to 80%. • FILAPW10, our innovative efflorescence-blocking sealant, stops impurities in concrete mortar, in the foundations and in the screed from rising to the surface of natural stone

and absorbent materials, thus preventing the material from being ruined by streaks or stains. FILAPW10 is water-based and ready to use. It offers you the long-term guarantee of perfect surfaces and satisfied clients. Fila’s products are distributed in more than 100 countries from its main production plant in Italy and its six commercial branches – in Dubai, France, Germany, Spain, the UK and the United States.

A global, eco-focused company, Fila combines the traditional values of a family-run firm with innovative product development. Our products are recommended by over 200 leading brands and are designed to provide high performance, while protecting natural surface characteristics. Our products span from pre-grouting protectors, detergents and sealants, to after-care maintenance and stain removal solutions. They are designed for the treatment of marble, granite, natural stone, porcelain, ceramics, terracotta, agglomerates, concrete and wood. Fila Surface Care Solutions has been present in the UAE since 2002 and has worked on projects such as the New Presidential Palace in Abu Dhabi, the Louvre Abu Dhabi and the Armani Hotel in Burj Khalifa.

Looking for a sealant that’s fast and safe to apply? FILAMP90 ECO PLUS Marble Granite

Natural Stone Agglomerates

FILA’s new solvent-free treatment PROTECTS NATURAL STONE AND POLISHED PORCELAIN from stains. EASY AND FAST APPLICATION Apply in one coat even with residual moisture present, cutting application time by up to 80%. AN INTEGRATED CARE SYSTEM that won’t alter appearance. LOW COST PER SQUARE METRE 60% greater coverage, compared to average of other products. Fila Middle East Office 2705, Fortune Tower, JLT, Dubai filamiddleeast@filasolutions.com +971 44 542 642

Recommended by over

200 INTERNATIONAL TOP BRANDS manufacturers of materials for floors and wall coverings

November 2016 53


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Business France This year, Business France, will organise five French pavilions at the Big 5 show 2016: • MEP Services: Hall 2 • Building Interior: Hall 8 • Building Envelope: Hall Sheikh Saeed 2 • Construction Tools: Hall Za’Abeel 1 • Middle East Concrete PMV: Hall Za’Abeel 7 More than 40 companies from the industry’s various sectors will be showcasing their products, services and expertise to local professionals with aim of forming or strengthening partnerships. France tends to export products that are high-tech, high-quality and of sophisticated design (such as innovative insulating materials, façades

that let in light, false ceilings, terracotta tiles, natural paints, decorative fireplaces). With a highly fragmented network of 382,000 businesses and revenue of ¤124 billion, France’s ability to play a major role in global trade is all the greater given that most of the sectors making up the industry include one or more international leaders: Vinci, Bouygues, Saint-Gobain, Lafarge and Eiffage to name but five.

Companies not to be missed: • French firm ARCHITECTURE DU BOIS (frames and woodframed buildings) – Terrasses grad will make its debut appearance at Big 5 and unveil its latest decking products www.terrasses-grad.com • The French hinge specialist CEMOM will introduce its door hinges; the company exports 60% of its production output to more than 40 countries (including GCC, Turkey, Egypt,

Jordan) – www.cemom.com • The French manufacturer specialized in passive fire protection ODICE will showcase its vices and locking pliers – www.odice.com • SFA, the French inventor of the famous SFA SANIBROYEUR®, will be exhibiting its latest Pumps and grinders – www.sfa.fr • VEDA FRANCE, the building joint specialist, will present its latest joints for the building industry: expansion joints, control joints, joint covers, fire-stop systems, stair nosings – www.vedafrfance.com For more information please contact: Miryem Oukas Messidi, Head of communications at Business France in the Middle East - miryem. oukasmessidi@businessfrance.fr

FRENCH PAVILIONS ON THE BIG 5 & MIDDLE EAST CONCRETE

Mep Service - HALL 2 Airamax

Booth F62

FRANCEM

F63

S.F.A

E61

Tecofi

F60

Building Interiors & Finishes HALL 8

Booth

Building Envelope & Special Construction HALL SHEIKH SAEED 2

Booth

Construction Tools & Building Materials HALL ZABEEL 1

Booth

Architecture du Bois / Terrasses Grad E84

ARaymond France

Cemom Moatti

F80

CDH Group

I127

Charpentiers des Alpes et Provence

D81

Dolex Bessey SER

I125

Ecopic

F84

Edma SAS

I121

Emfi SAS

D83

Gys

J121

Guard Industrie

E80

MPM Moulages Plastiques du Midi

J125

K126

ASM / Ilea Douches

B333

Icopal SAS

F82

Outil Parfait

I123

Clipso Productions

C332

Mantion SAS

E81

PMS Industries

J127

Guard Industrie

C330

Odice SAS

D87

Sam Outillage

J123

GV2 Veda France

B335

Platre.com

F86

Stabline

K124

Ispo France

B331

Simonin SAS

E86

Thirard

K120

Kemica Coatings

B337

Terreal

E87

Tivoly

J124

Toupret

C336

Vertic International

E83

Tubesca-Comabi

J120

Virax SAS

J126

54 November 2016

Middle East Concrete - PMV HALL ZABEEL 7

Booth

A.C.F.

MEC G126

Adler Technologies

MEC F127

Agronis

MEC F123

Ariadis

MEC F121

Quadra

MEC G120


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Key focus Bribery and corruption is a key area organisations in the MENA region should focus on.

Comment

Bibi Sarraf-Yazdi

Justin McCelland

Keeping your hands clean

Justin McCelland, partner, and Bibi Sarraf-Yazdi, associate, at Winston & Stawn in Dubai, examine how the UAE construction sector should remain compliant when faced with a corruption investigation As regulators increase their global reach into bribery and corruption allegations in the construction sector world-wide, it is increasingly important for companies and organisations in the UAE to have in place robust procedures to respond to possible allegations and react to regulators and prosecuting agencies. Bribery in the UAE The construction and infrastructure sector has featured significantly in bribery prosecutions, with 11% of all enforcement activity since the US Foreign Corrupt Practices 56 November 2016

Act (FCPA) was introduced relating to the sector. A number of headline-grabbing cases demonstrate that the sector continues to face significant bribery and corruption risks. In recent years, a number of international surveys and reports have benchmarked countries on the basis of their perceived levels of corruption. The UAE’s position, 23rd lowest of 168 countries, suggests that combating bribery and corruption is a key area on which organisations in the sector should focus. Increased perceived levels of bribery and corruption, coupled with robust prosecuting agencies

using established legislation such as the US FCPA 1977 and the UK’s Bribery Act 2010 have raised the importance of being properly prepared. In the UAE, enforcement of established anticorruption laws received a boost in 2015 with the announcement by the Abu Dhabi Executive Council of the establishment of a new Anti-Corruption Unit. Companies in the construction sector face a number of specific risks due to the following factors: • Obtaining planning permission and licences is a lengthy process and open to abuse. • The use of subcontractors and consultants or agents is

prevalent, increasing the risk of third parties making or soliciting bribes. In the recent Ernst & Young 12th Global Fraud Survey, respondents from the construction and infrastructure sector were more likely than average to see bribery as common practice in their sector. • Joint ventures are commonly used; indeed, in some jurisdictions it is necessary to have a local partner either as a result of legal requirements or from a commercial perspective. • Negotiations concerning additions to specifications and cost over-runs are


Comment

“It is important from the outset of an investigation to set a cooperative but firm tone with the ADAA, the MOJ and other regulatory agencies”

critical to determining the profitability of a contract. These negotiations offer opportunities for consultants or clients to attempt to leverage payments or other benefits. The Investigation Process Each investigation by the regulators will have its own features depending on the nature, scope and jurisdictional spread of the alleged behaviour. However, it is possible to identify key phases for any investigation and to highlight some of the important issues for organisations dealing with bribery or corruption allegations.

Resources Notification of a possible bribery offence having been committed in the UAE takes a number of forms, including contact from the Abu Dhabi Accountability Authority (ADAA) and/or the Ministry of Justice (MOJ), or from an internal process such as internal whistle blowing, audits or routine accounting checks. Once notified, the organisation should without delay establish an internal team tasked with managing the investigation. That team should be small, discreet, senior and independent from the area of the business involved in the alleged offences, to ensure it has the authority to act quickly and efficiently. Depending on the size of the investigation, the team would typically include in-house legal, the head of the relevant business unit and representatives from IT and HR. At this stage, consideration should be given to engaging external specialists such as forensic accountants, IT experts or even public relations advisors if necessary, in multiple jurisdictions. Complex factual investigations and legal analysis may need to be conducted quickly, and so engaging independent external legal advisors should be a priority, to advise the team and report to the Board. The internal team and its advisors will need to focus on: • Identifying what appears to have happened and when, and who was involved • Whether the behaviour is ongoing and, if so, how to stop it • Whether there is any foundation to the allegations • Who is affected by the allegations, both internally and externally • The risks to the organisation • The jurisdictions affected by the bribery • How and when the organisation should communicate both

internally and externally As the investigation evolves, these issues should be reviewed to ensure that the team remains properly focused. The Internal Investigation The management team must move quickly to develop an investigation plan, building in flexibility to accommodate challenges to resources and timings. The key tasks and issues for the investigative team, which should be included in the plan, will include: • Gathering and securing evidence – preserving all relevant or potentially relevant evidence relating to the alleged behaviour is crucial, and is likely to be requested by the ADAA and/or the MOJ. Any gaps in evidence because data was lost or destroyed may impede the organisation’s own ability to understand what happened and could cause significant problems in any subsequent associated litigation, or in further investigations by regulators or prosecuting agencies. • Data review – the management of the review can be assisted using easily available document management platforms to allow a proportionate, targeted and prioritised review. • Interviews – conducting interviews with relevant both current and ex-employees, and if necessary external third parties, should be planned. Interview timings need to be considered carefully, as when the internal investigation is being conducted in parallel with investigations by regulators or prosecuting agencies, they may object to certain witnesses being interviewed in the course of an internal investigation. Interviews should be conducted by experienced interviewers and accurately November 2016 57


Comment

a.

b. c. d. e.

recorded and noted on the record while clarifying the interview’s privileged status. Employees – one of the key challenges in any investigation is whether, and at what stage, to suspend employees who may have engaged in the bribery or corruption. Much depends on the information available and whether suspensions would be deemed compliant with the disciplinary rules of the amended UAE Labour Law, Federal Law No. 8 of 1980. Written report – it may be appropriate for the investigative team to prepare a written report, which would typically include: A description of the nature and extent of the internal investigation An overview of the factual findings The conclusions reached The steps taken as a result of the factual findings A list of future intended actions

“Despite the increasing ABAC measures in many Middle East countries, bribery and corruption is still prevalent, as shown by the numerous FCPA cases involving conduct in the region”

However, a report is not without risks and care should be taken in reaching any conclusions regarding any criminal or regulatory infringements. Regulators and Prosecuting Agencies It is important from the outset of an investigation to set a cooperative but firm tone with the ADAA, the MOJ and other regulatory or prosecuting agencies. Where the behaviour under investigation extends across more than one jurisdiction, the management team will need to take into account the possibility of having to self-report the behaviour, which raises a number of challenging issues. As to the final outcome, there may be scope to persuade the regulators that insufficient evidence or public interest exists to justify action, or that early cooperation justifies a less aggressive regulatory response and/or a mitigated penalty. increased pressure There is increasing pressure on governments and leaders to strengthen their ABAC laws and practices.

58 November 2016

However, the organisation must not lose sight of the fact that any settlement which involves the admission of criminal behaviour will almost certainly have an impact on its position in any subsequent civil proceedings, and on claims made under its insurance policies. Associated Litigation Litigation associated with alleged or admitted bribery and corruption may come from a number of potential sources and arise across different jurisdictions. To address associated litigation risks, the management team should formulate an initial defence strategy early in the investigation process, following an initial internal audit of the immediately available evidence. Conclusion There is increasing pressure on governments and leaders to strengthen their ABAC laws and practices. For example, Saudi Arabia last year initiated a crackdown on corruption through the newly created National Authority for Combating Corruption. But despite the increasing ABAC measures in many Middle East countries, bribery and corruption is still prevalent, as shown by the numerous FCPA cases involving conduct in the region. With the increased likelihood of bribery and corruption allegations arising, having a plan to manage the myriad issues they generate, from initial emergence of the allegation, will help UAE organisations in addressing these challenges efficiently and effectively. The authors would like to acknowledge the assistance of Winston & Strawn partners Robb Adkins (Los Angeles) and Derek Andreson (Washington, DC) in writing this article.


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Millions of critical decisions are made every day to protect the people and infrastructure of major cities. Through more services, greater efficiency and a focus on sustainable development, the vision of governments and public authorities is to turn these cities into smart cities. Thales is at the heart of this. By providing greater integration, interconnectivity, and leveraging existing infrastructure, our powerful management systems give decision makers the information and control they need to make more effective responses in critical environments. Every moment of every day, wherever safety and security are critical, Thales delivers. Search: Thalesgroup


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Helping you make the smartest decisions

increasing controllability The ABB project will demonstrate how digitalised communications within a substation can help increase controllability.

The DigiTal SubSTaTion

ABB explains how digital substations improve efficiency, safety and system visibility in future-oriented power grids A digital substation is a key component enabling a smarter grid. Digital communications via fibre optic cables will replace traditional copper connections using analogue signals, increasing safety, flexibility and availability, while reducing cost, risk and environmental impact. Digital substations also incorporate Intelligent Electronic Devices (IEDs) with integrated information and communication technology. An IED is a microprocessor-based protection and control device for power equipment, such as

60 November 2016

circuit breakers, transformers and capacitor banks.

ABB was recently selected to participate in the FITNESS (Future Intelligent Transmission NEtwork SubStation) project of SP Energy Networks, a UK-based electricity transmission and distribution network operator, along with other partners. ABB will contribute its grid automation technology to this project, which will enable the first digital substation project in the UK that will allow the digital substation scheme to protect, monitor

and control the transmission network in parts of Scotland. The FITNESS project will see two bays of the existing Wishaw 275-kilovolt substation in Scotland being equipped with new fully integrated digital protection and control systems, which will also enable improved system visibility, diagnostics and operation. This area is of special interest, as large quantities of wind power could be integrated into the grid. ABB will deliver a suite of digital substation components, including IEDs, non-conventional

instrument transformers, merging units and phasor measurement units that are interfaced with the IEC 61850-9-2 process bus architecture and with the wide area monitoring platform. “This project will demonstrate how digitalised communications within a substation can increase controllability, facilitate the integration of intermittent renewables and improve safety by replacing copper cabling with fibre optics,” says N Venu, Lead Division Manager South Asia, Middle East and Africa of ABB’s Power Grids


Figure 1

division. “A key element of our Next Level Strategy is to focus on enabling the automation of the grid in line with our Internet of Things, Services and People approach to help utilities improve reliability and ensure safe and clean energy supply to consumers.” Costs, risk and environmental impact

The benefits of this innovative approach include reduced substation project cost, risk and environmental impact, and increased flexibility, controllability and availability. For an average size transmission level air-insulated (AIS) substation, one of the many benefits with the digital concept is that more than 30 tonnes less material is transported to site. The weight of the fibre optic cabling is around 80% less than the copper cables it replaces. Also, ABB’s extensive IEC 61850 experience and portfolio of NCITs, merging units, protection and control IEDs, as well as station automation solutions, eases utilities into the digital world. Digital Substation and IEC 61850

The world beyond the bays is

Figure 2

still predominately analogue. The conventional primary equipment, like current and voltage transformers, is connected back to intelligent electronic devices (IEDs) using parallel copper wires carrying analogue voltage signals ( figure 1). The IEDs receiving that data perform first-level analysis and often provide the gateway into a digital world. But there is little Reduced costs A fully digital substation is smaller, more reliable and has a reduced lifecycle cost.

advantage to keeping the data in analogue form for so long; to properly be called a digital substation, the transition to digital must take place as soon as the data is gathered ( figure 2). A fully digital substation is smaller, more reliable, has a reduced lifecycle cost and is simpler to maintain and extend than an analogue one. Depending on substation size and type, and

whether it is a new station or a retrofit of a secondary system, different approaches and solutions are required when implementing digital technologies. Flexible solutions allow utilities across the globe to set their own pace on their way toward the digital substation. Digital substations are a key solution in shaping the evolving grid, and ABB’s latest technology offering in this area will enable customers to optimise their operations. Facilitating grid automation and the convergence of information and operational technologies are an integral part of our Next Level strategy and ABB’s Internet of Things, Services and People approach. ABB presented its digital substation model at the Cigré conference and exhibition in Paris in August 2016, a leading global platform for power experts and a showcase for the latest technology developments in the sector. The digital substation is a key component of next-generation grids and will be showcased at many upcoming power shows around the world. It was featured at WETEX, Dubai in October 2016 and will be at Cigre GCC Power, Qatar in November, 2016.

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Oil & Gas

ConneCting ConneCtors Thony Brito Cardier of Rockwell Automation explains how oil & gas companies are digitising pipelines in a new era for the industry

An appetite for energy The world’s appetite for energy is expected to increase 37% by 2040.

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The oil & gas industry is in a process of real change. The price of oil, after years of rising steadily, has dropped dramatically as new streams have come online and global competition has become fierce. Meanwhile, extraction technology and methodology improvements are extending the life of oilfields and bringing hardto-reach resources to market.

While many analysts talk of these elements contributing to a new oil order from a production viewpoint, pipelines offer a fascinating insight into how a new level of connectivity is at the

heart of an industry entering a new information-enabled era. The new oil order

It’s worth starting by taking a look at the industry as a whole before looking more closely at pipelines, if only to understand the importance of pipelines to the future of the sector. The rapid recent changes in the global oil & gas landscape have made it very difficult to make economic projections. Take, for example, the onshore oil & gas production resurgence in the United States. From a revolution in shale and


Oil & Gas

gas technologies, the conventional output of US onshore and offshore fields has been bolstered, and the US has become the world’s leading energy producer. In 2014, Saudi Arabia produced 11.6 million barrels a day; the daily yield of the US reached 11.7 million barrels. Supply and demand

Since then, though, the market saw rapid constriction as oil prices plummeted. That same market instability can be recognised at the time of writing this article. Any fears that oil & gas is a market in decline, however, should be set

against an almost daunting fact. The IEA predicts that the world’s appetite for energy will increase 37% by 2040 as developing nations add millions of new consumers and huge amounts of infrastructure development through the first half of the 21st century. Demand in China alone is expected to increase by 75% by 2035. Oil & gas appears likely to remain the most important global commodity well into the future – in fact, fossil fuels will supply almost 80% of world energy use through 2040. Pressure points and risks

But what does this mean for such an asset-intensive industry? Every investment in new wellheads, pumps and compressors equates to a rise in the operating company’s operational risk, and the cost of equipment failure is higher than in any other sector. As long ago as 2013, Forbes calculated the average cost per hour of downtime at $1 million. For BP, the cost of the catastrophic failure at Deepwater Horizon is widely estimated to have been around $40 billion. More, safer pipelines

Upstream, the new oil order means production is more fragmented as new reserves are discovered or made recoverable by improving technology in places further and further from existing infrastructure. The knock-on effect to midstream – and of particular interest here – is that the surge in supply and the extended geography of the industry means there is a growing need for more and safer pipelines. It’s a situation which, alongside a stricter regulatory environment and a reduction in the global skills pool, is driving the optimisation of processes, efficiency and expenditure.

“The industry is adopting IoT functionality and harvesting huge new resources of data via standardised Ethernet-based connectivity, for leverage through advanced analytical IT software at the enterprise level, to realise the full value of their assets” Optimisation

That optimisation is being delivered through connected technology. Specifically, the advanced digital and automation technologies which are rapidly changing manufacturing and telecommunications are beginning to be applied in the oil & gas sector, to dramatic effect. Pipelines

are a case in point, as we shall see, but staying at the industrywide level for the moment, it’s worth understanding more about what the Industrial Internet of Things (IIoT) and connected enterprise technologies are doing for early adopters in oil & gas. In the most basic terms, the information revolution which has changed consumer and business technology has been historically limited in its reach into the production and processing environment. This is the result of a combination of factors – not least a disconnect between Operational Technology (OT) and Information Technology (IT) systems, which have traditionally run separately in industry, using different information languages and control systems. With a vast, expensive installed base of proprietary systems built to specific needs, acquired from various vendors and requiring specialist in-house engineering skills and knowledge to maintain, it’s not surprising that while production is flowing, the benefits of efficiency improvements are often outweighed by the cost of downtime and capital expenditure. Information revolution in the pipeline

But as aging systems are updated and new fields are exploited, today’s OT, with integrated control and information solutions including smart devices, is converging with a new generation of IT. The industry is adopting IoT functionality and harvesting huge new resources of data via standardised Ethernet-based connectivity, for leverage through advanced analytical IT software at the enterprise level, to realise the full value of their assets. Leading oil & gas companies are moving to a new high-performance era through solutions that offer dramatic efficiency savings, reduced

November 2016 63


Oil & Gas

downtime, improved maintenance and predictive maintenance, and reduced engineering requirements. Realising this level of connectivity is becoming a business imperative. As the convergence in automation, communications and information technologies creates more and more opportunity to improve the bottom line, oil & gas companies are moving into a digital era. Technology that seamlessly integrates sensors, hardware, software and wireless connections to harvest operational information, including pressure at various points along the pipeline, allows operators to continuously monitor ongoing and past operating conditions, troubleshoot issues and make adjustments to increase uptime. Let’s look at how that changes things: • Rather than manually checking remote pump/ compressor stations, metering stations, turbine controls and associated drive and control technologies, operators can use remote monitoring technology to supervise the whole pipeline, as well as networks of pipelines and flowlines. Moreover, this can be done from a single location. • Gathering, analysing, contextualising and sharing this information using intuitive software interfaces and historic data logging functionality means operations managers can automatically calculate and monitor KPIs and easily display critical operational information to those who need it, wherever they are. • Performing constant remote diagnostics can help operators see potential issues or underperforming equipment. Predictive and more responsive maintenance can be performed and downtime can be avoided,

64 November 2016

house engineers to apply their knowledge to oversee remote asset management. Moreover, trusted third-party expertise, such as that of automation solutions vendors with specific product and programming expertise, can also be given access when necessary. This couldn’t come at a better time for an industry which is suffering from a lack of engineering expertise as a generation retires without adequate experienced replacements. The security question

seamless integration Technology seamlessly integrates sensors, hardware, software and wireless connections to harvest operational information.

“Global demand for oil and gas is growing, but so is competition, and with a growing skills gap and increasing regulatory requirements, pipelines will need to become digitally connected to meet the demands of the new oil order”

planned or better managed, to say nothing of the potential to identify leaks and reduce the risk of catastrophic failures. Driving intelligence

Intelligent medium voltage drives are also an integral part of remote pipeline communications for our customers. With Ethernet technology embedded, they send and receive crucial data concerning the status of the pump and compressor motors. Remote operation is possible through this two-way communication, so if a motor is running too high, for example, operators can react to the signal sent by the drive and throttle it back in response. The benefits to safety from reduced blow-out risk are obvious, as is the associated cost saving of avoiding downtime. Bridging the skills gap

Remote monitoring technology is also changing the way engineers are able to apply their knowledge vastly reducing the time lost in travelling physical distances to assess issues, and allowing in-

With business-critical data being transferred and OT systems becoming accessible via online channels, many are rightly concerned about the potential security risk to vital national and international infrastructure. Adopting suitable security strategies is of fundamental concern. Operational integrity requires an ongoing approach to limit vulnerabilities. This means an ongoing programme of defence-in-depth strategies to tackle both internal and external threats. Put simply, defence-in-depth methodology accepts that any single point of protection, such as a firewall, might be penetrated by a persistent attacker, given enough time. The most effective way to counteract this is to have multiple layers of defence – physical, electronic and procedural. The final analysis

Pipeline operators who adopt connected technology will be more efficient – and those who have already adopted it are reaping huge benefits. Global demand for oil and gas is growing, but so is competition, and with a growing skills gap and increasing regulatory requirements, pipelines will need to become digitally connected to meet the demands of the new oil order.


Show preview

‘Smart CitieS’ iS the offiCial theme for mee 2017 Region’s leading power exhibition announces its theme for the 2017 edition Middle East Electricity, one of the world’s leading power exhibitions, has announced its theme for the 2017 edition. Alongside Dubai Municipality and the Environmental Centre for Arab Towns, who are Strategic Partners for the event, the organisers will be creating a series of new features, conferences and activations focusing on the future of Smart Cities, and the innovations which are set to lead the way both locally and internationally in the coming decade. The inaugural half day ‘Energising the Smart City Conference’ on 15 February will feature sessions on how best to innovate urban energy solutions. Municipal leaders, electricity solution providers and research communities have all been invited to take part, to discuss how best to reach a sustainable energy mix that adequately supports rising energy demand. The ‘Energising the Smart City Conference’ will explore:

commercial action locally • The difference alternative materials and manufacturing processes could make for users • What visionary (impractical) projects such as Solar Impulse can teach energy investors How to make cities 100% renewable • Why cities worldwide are defining this goal statement • Is regulation the answer, or will market forces provide longer-term solutions? • After roofs are covered in solar and grids are smart, what next? “We believe that putting an increased onus on Smart Cities will transcend all our new features and content offerings. As the region’s leading platform for deliberation

and growth for the international power community, our goal is to assist the Dubai municipality in reaching their objectives set by the government on making Dubai a fully integrated Smart City,” says Anita Mathews, group director – Informa Industrial Group. To further enhance visitor experience, another new feature will be the Smart Cities Innovation Zone in Zabeel Hall 3. This dedicated area will feature smart, innovative, integrated solutions from leading suppliers that have specific applications in a Smart City, including automation and energy efficiency. For the first time, visitors to the 2017 exhibition will also be able to take advantage of The Consultants’ Arena, where top engineering consultants from across the region

will give talks on concepts and regulations essential to electricity markets in the Middle East. Also taking place, for the fourth year running, will be the Future Generation Competition. Supported by Masdar Institute, students from universities across the UAE will be given a platform to showcase their projects/technologies under the theme of Smart Cities. Shortlisted entries will have the opportunity to present their projects to the public, as well as a panel of judges including an expert from Masdar Institute, with two separate awards up for grabs. Middle East Electricity 2017 will take place February 14-16 at the Dubai World Trade Centre. For more information, please visit www.middleeastelectricity.com

innovation Zone Visitors will be able to experience the Smart Cities Innovation Zone in Zabeel Hall 3 at MEE 2017.

How to better manage a city’s energy • Making disparate electricity systems interoperable • Installing energy management systems strategically throughout a city • Investing in smart meters and grids, and then assuring an operational plan exists How to improve the energy products used by cities • Why energy storage is getting so much attention, but little November 2016 65


Advantages of the FAG SmartSET

The FAG SmartSET design

The FAG SmartSET offers clear product advantages over standard tapered roller bearings.

The FAG SmartSET consists of two bearing units (graphic shows one unit) each of which comprises the following components:

• Ready-to-fit wheel bearing set • Pre-installed inboard and outboard bearing units • Pre-greased ex works – correct specification and amount of grease guaranteed • The rolling elements are pre-positioned by means of a support ring, which eliminates additional wheel rotation when adjusting the bearing • Dust cover prevents ingress of dirt particles and therefore possible contamination of the grease • Durotect® B coating on the outer and inner rings eliminates typical negative influences on the bearing's service life • Sliding fit by means of a modified inner ring – prevents the hub tilting during assembly • Special tool included • Doubled service life

• Outer and inner ring • Rolling elements • Synthetic cage with retaining clips • Support ring • Dust cover

Outer ring with Durotect® B coating

Synthetic support ring

For more information:

Schaeffler Middle East FZE Tel. +97 1 4 8144500 automotiveaftermarket.ae@schaeffler.com www.schaeffler-aftermarket.ae


Durotect® B coating The outer and inner ring of each unit have a special Durotect® B coating developed by Schaeffler, which has the following advantages: • Protection against corrosion • Lower friction • No micro-cracks • Reduction of slippage damage in the bearing (speed difference between the inner/outer ring and the rolling elements) • Longer service life

The service life of the FAG SmartSET is double that of a standard tapered roller bearing. Thanks to optimized product properties, the set saves one wheel bearing repair during the service life of truck. In addition, compared to standard tapered roller bearings, complex work steps can be omitted for all brake repairs using the FAG SmartSET. When disassembling the hub, the FAG SmartSET remains a sealed unit. Furthermore, it does not need to be cleaned and re-greased. The time needed for each brake repair is therefore reduced by up to two hours per axle. Over the service life of a truck, up to six brake repairs per axle can incur. Thus, the FAG SmartSET increases the vehicle's mobility and reduces the operating cost of commercial vehicles and trailers.

Modified inner ring with Durotect® B coating Synthetic cage with retaining clips and rolling elements

Maximized mobility – minimized operating costs

Dust cover

Standard-tapered roller bearing Mileage

Costs Operating costs with a standard tapered roller bearing

Operating costs with FAG SmartSET

Mileage

FAG SmartSET Brake repair

Wheel bearing repair


Event preview

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Event preview

A big night

Big Project ME looks back at last year’s awards ceremony as the build-up towards November 22, 2016 picks up The 2015 Big Project Middle East Construction and Sustainability Awards of Excellence took place last November 24, 2015 at the Godolphin Ballroom in Jumeriah Emirates Towers Hotel. Held in recognition of the many achievements of the regional construction industry, the black-tie gala dinner and awards were attended by more than 350 guests from across the industry.

Spread across 15 categories, the winners were chosen by an independent panel of judges from a shortlist of nominees compiled by the Big Project ME editorial team. Some of the major winners from last year included: Multiplex for General Contractor of the Year; Samsung C&T Engineering and Construction Group for Infrastructure Contractor of the Year; China State Construction Engineering Corporation Middle East took home the Project of the Year award for the Central Bank of Kuwait Headquarters. Meanwhile, Kez Taylor, the long-serving CEO of ALEC, won the Construction CEO of the Year award; while Donna Sultan, CEO of KEO

International Consultants, won the first-ever Big Project ME Woman of the Year award. This year, the 14 categories open for nominations at the Big Project ME Construction and Sustainability Awards of Excellence 2016 are: • HSE Leader of the Year • Excellence in BIM Implementation • Construction Professional of the Year • Construction Executive of the Year • MEP Contractor of the Year • Construction Contractor of the Year • Construction Project of the Year • Smart Solution of the Year • Infrastructure Contractor of the Year • Infrastructure Solutions Provider of the Year • Infrastructure Project of the Year • Sustainable Initiative of the Year • Sustainable Government Department of the Year • Sustainable Project of the Year

November 2016 69


Event preview

2015 AwArd wiNNErS Contractor of the Year (general) Multiplex Contractor’s Consultant of the Year WSP | Parsons Brinckerhoff Developer of the Year Wasl Asset Management Group health and Safety Leader of the Year ALEC Contractor of the Year (infrastructure) Samsung C&T Engineering and Construction Group Specialist Contractor of the Year Eversendai Engineering big Project ME Woman of the Year Donna Sultan KEO International Consultants Construction CEO of the Year Kez Taylor ALEC Young Construction Professional of the Year Elizabeth Peters AECOM Middle East Sustainable government Department of the Year Bee’ah Sustainable initiative of the Year Brookfield Multiplex Sustainable Project of the Year Green Energy Solutions and Sustainability Excellence in biM implementation Brookfield Multiplex Project of the Year (Contractor and Subcontractor) Central Bank of Kuwait HQ CSCECME

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YOUNG AT HEART has only just begun. In partnership with our customers, we will continue our successful journey on which innovative solutions meet the future.

www.scania.com


Event review

a good day out

Region’s top firms come together at the Emirates Golf Club for the Big Project ME Golf Day Consultants and Architects Cup 2016 With the intense heat and humidity of the UAE summer abating, it was time for yet another edition of the Big Project Middle East Golf Day.

Held on October 19, 2016 at the Emirates Golf Club, this year’s event saw a full roster of players, chosen from the region’s top consultants and architectural firms. Facing off against each other in allocated teams based on handicaps, players engaged in a day of intense and friendly, competition. Additional sponsor competitions added to the sense of enjoyment, with Geberit hosting a putting competition; Stretch Ceilings holding a ‘hitthe-bulls eye’ event; and CCS with their ‘guess the number of tees in a bowl’ contest. Truelux Group also held a competition for the ‘Straightest Drive’ on Hole 5 of the Faldo Course, while group partner

Electric Mirror held a ‘Nearestto-the-pin-in-two’ competition. Winners received a range of prizes, including overnight stays at the Four Seasons Hotels and vouchers from The Meat Company and Le Classique Restaurant. Targeted at senior and upper management, this year’s Consultant and Architects Cup saw a number of first-time attendees join in, helping to foster a sense of networking and relationship building over the course of the day. “The turnout today is a clear indication that the industry values these golf days. We look forward to hosting more over the years,” said Raz Islam, publishing director of CPI Construction. “A special thank you is due to all our partners and sponsors. They provided us with incredible support and we couldn’t have done it without them!”

Thanks to all our sponsors

G r o u p

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Event review

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Event review

CONGRATULATIONS The 2016 winners of the Big Project ME Consultants & Architects Cup were: 1st Place Nik Hewitt Truelux Group Chris Smerdon Jones Lang LaSalle Craig Gibson KPS Harry Dickinson Jones Lang LaSalle 2nd Place Steven McFadden Nora Jaydeep Sarkar Gateway Frederik Anderson Flex Joint Martin Geskes Planquadrat 3rd Place Graham Braybrooke CCS Kevin Perrins Al Naboodah Construction Group Lyndon Dafert ALEC Jay Bester ALEC Nearest the Pin Jaydeep Sarkar Gateway Longest drive Thomas Johnson Sommerman Skinner Associates

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21-24 November 2016 Dubai World Trade Centre NEW Za'abeel Halls 4-6

THE LARGEST INFRASTRUCTURE & CONSTRUCTION MACHINERY EVENT IN THE MIDDLE EAST • Source from 5,500+ products

• Educate yourself with 30+ seminars

• Grow your business with 400 exhibitors

• Visit the show and discover more

Register before 20th November and avoid paying AED 150 at the door! Co-located with:

www.middleeastconcrete.com/Reg www.pmvlive.com/Reg


Tenders

Top tenders Hessa al Mubarak Mixeduse developMent project budget $5,000,000,000 project number WPR1298-K territory Safat 13100, Kuwait client Kuwait Projects Company (KIPCO) phone (+965) 805 885 Fax (+965) 243 5790 email kipco@uggi.com Website www.kipcogp.com description Development of a comprehensive mixed-use scheme comprising 82 plots for residential buildings (high, medium and low-rise apartment buildings and duplexes); serviced apartments; offices; clinics; health clubs; commercial activities; retail; as well as food and beverage (F&B) outlets. period 2020 status New Tender tender categories Agriculture & Irrigation, Construction & Contracting, Leisure & Entertainment, Prestige Buildings, tender products Commercial Buildings, Gardens/Parks Development & Maintenance, High-rise Towers, Mixed-use Developments, Residential Buildings, Retail Developments

Company (Saudi Aramco) phone (+966-13) 872 0115 / 874 2222 Fax (+966-13) 873 8190 / 874 1655 email supplierhelpdesk@aramco.com Website www.saudiaramco.com description Engineering, Procurement and Construction (EPC) contract for the expansion of production facilities at an oil & gas field. status New Tender tender categories Gas Processing & Distribution, Oilfields & Refineries tender products Gas Exploration & Production, Oilfields Exploration & Development

tunnels construction project – suez canal budget $2,000,000,000 project number WPR1284-E territory Suez, Egypt

client Suez Canal Authority (Egypt) address Suez Canal Building phone (+20-66) 333 1952 description Construction of three tunnels. period 2018 status Current Project tender categories Construction & Contracting, Roads, Bridges & Infrastructure tender products Tunnels Construction

two additional floors offering 61 beds featuring suites, premiere and deluxe in-patient rooms. period 2018 status Current Project tender categories Construction & Contracting, Medical & Healthcare tender products Hospital Construction

burjeel tertiary care

project number MPR1510-E territory Cairo, Egypt client Egyptian Electricity Transmission Company (EETC) phone (+20-2) 2261 8579 / 2684 3824 Website www.eetc.net.eg description Construction of a photovoltaic power plant with capacity of 50MW. period 2017 status Current Project tender categories Power & Alternative Energy tender products Photovoltaic Plants

Hospital project budget $175,000,000 project number WPR828-U territory Al Ain client VPS Healthcare Group (Abu Dhabi) phone (+971-2) 222 2366 / 508 5555 email info@vpshealth.com Website www.vpshealth.com description Construction of a tertiary care hospital comprising a ground floor and

pHotovoltaic poWer plant project

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production Facilities expansion project – saFaniya oil & Gas Field (pHase 4) budget $1,600,000,000 project number MPP3082-SA territory Dhahran 31311, Saudi Arabia client Saudi Arabian Oil

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

76 November 2016

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Tenders

Middle East tenders UAE arMada blue bay Hotel project budget $50,000,000 project number WPR1324-U territory Sharjah, United Arab Emirates client Armada Group (Dubai) address Armada Towers, Jumeirah Lake Towers, Sheikh Zayed Road phone (+971-6) 395 7777 Fax (+971-6) 395 8838 / 392 8933 email info@armadaholding.com Website www.armadaholding.com description Construction of a 4-star hotel comprising 20 floors. period 2018 status New Tender tender categories Hotels, Prestige Buildings tender products Hotel Construction

sHarjaH city centre expansion project budget $71,000,000 project number WPR1326-U territory Sharjah, United Arab Emirates client Majid Al-Futtaim Properties (Dubai) address Majid Al Futtaim Tower 2, Deira City Centre phone (+971-4) 294 9999 / 2444 Fax (+971-4) 294 2555 Website www.majidalfuttaim properties.com description Carrying out expansion of an existing shopping mall to

increase the fashion and lifestyle brands by 25 new storefronts, boosting the total number of retailers to 150 and adding 13,700sqm of retail space, including a 12-screen VOX Cinema with the latest cinematic technologies. period 2018 status Current Project tender categories Construction & Contracting, Leisure & Entertainment tender products Retail Developments

Qatar al MutaHidaH toWers project – viva baHriya – tHe pearl

project number WPR1285-Q territory Doha, Qatar client United Development Company qsc (UDC) – Qatar address 6th Floor, Office No 62, Al Fardan Centre, Grand Hamad Street phone (+974) 4409 8400 Fax (+974) 4409 8500 email tenders@udcqatar.com Website www.udcqatar.com description Construction of a residential tower comprising approximately 450 luxury apartments. period 2019 status New Tender tender categories Leisure & Entertainment, Prestige Buildings tender products Residential Buildings

FisH processinG plant project budget $1,500,000 project number WPR1233-Q territory Doha, Qatar client Ministry of Energy & Industry (Qatar) phone (+974) 4484 6444 Fax (+974) 4483 2024 email dae@mei.gov.qa Website www.mei.gov.qa description Construction of a fish processing plant period 2017 status Current Project tender categories Industrial & Special Projects tender products Food Processing Plants

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

78 November 2016


Tenders

Saudi Arabia sWiss-belHotel Hotel project – al kHobar budget $40,000,000 project number WPR1172-SA territory Saudi Arabia client Swiss-Belhotel International (Dubai) address 30th Floor, Burlington Tower, Business Bay phone (+971-4) 403 6750 Fax (+971-4) 321 8683 email sbime@swiss-belhotel.com Website www.swiss-belhotel.com description Construction of a new four-star hotel comprising 100 rooms, featuring contemporary interior design, two food and beverage outlets as well as retail shops for rent. period 2017 status Current Project tender categories Construction & Contracting, Hotels tender products Hotel Construction

Metals sMeltinG Factory project – daMMaM industrial city budget $2,000,000

project number WPR1322-SA territory Riyadh 11423, Saudi Arabia client Metals Corner Trade & Industry Company Ltd (Saudi Arabia) phone (+966-11) 278 8983 / 278 8953 / 278 8939 Fax (+966-11) 278 8920 email info@metalscorner.com Website www.metalscorner.com description Construction of a metals smelting factory. period 2017 status Current Project tender categories Industrial & Special Projects tender products Mining & Metals

Kuwait colleGe oF arcHitecture & colleGe oF coMputer sciences & enGineerinG project project number WPR1245-K territory Safat, Kuwait client Kuwait University address Building 119, 1st Floor, Khalidiyah phone (+965) 2498 4271 Fax (+965) 2484 8648 email info@kuniv.edu Website www.kuniv.edu description Construction of

a College of Architecture and College of Computer Sciences & Engineering at a university campus. status New Tender tender categories Construction & Contracting, Education & Training tender products Educational Developments

Bahrain souq al buHair renovation project project number WPR1283-B territory Manama, Bahrain client Amlak (Bahrain) phone (+973) 1751 6444 Fax (+973) 1751 6449 email info@amlak.bh Website www.amlak.bh description Carrying out renovation of a market into a modern mixed-use facility. period 2017 status Current Project tender categories Leisure & Entertainment, Construction & Contracting

tender products Mixed-use Developments, Retail Developments

Oman duqM city developMent project – pHase 1 project number WPR1303-O territory Muscat PC 103, Oman client Duqm Special Economic Zone Authority – SEZAD (Oman) address Bareeq Al Shatti phone (+968) 2450 7500/7545/7558 Fax (+968) 2458 7400 email sezadtenders@duqm.com Website www.duqm.gov.om description Development of a city comprising five districts, including residential, commercial, mixed-use, logistics and tourism. status New Tender tender categories Construction & Contracting, Leisure & Entertainment tender products Commercial Buildings, Mixed-use Developments, Residential Buildings, Retail Developments

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

November 2016 79


Last word

Paving the Way Jason Lewis outlines five key principles to consider when engaging a wayfinding consultant to turn your built environment into a dynamic space Today’s developers and users demand more than just buildings; they expect a great customer experience. A few consultants across a number of disciplines are leading the way, from architects delving into placemaking to landscape architects creating walkable cities and innovating wayfinding consultants focused on user experience.

Much has been written about turning built environments into more dynamic spaces to visit, but the total user experience is rarely considered. This is where a professional consultant in wayfinding can add the most value to a project. Every developer and architectural team engaging a wayfinding consultant can consider these five principles to determine whether the end result will be merely signage design, or whether the consultant will develop human experiences that make

80 November 2016

environments users want to keep coming back to. 1. Apply multidisciplinary skills and perspectives

A professional wayfinding consultant will define and develop with the client the common project vision or site-wide strategy. However, to do this effectively they must cross the borders between product design, marketing, architecture, engineering, customer experience, digital design and many other disciplines. Today’s leaders in the field see that human experience drives strategy and design and is multidisciplinary. 2. Consider the whole journey

Arriving at the site is only one stage of the user’s experience. Other experiences that can be developed include the online stage, parking, navigating, customer service and social media interactions, digital applications, facilities

“If developers are looking for a competitive advantage, creating a positive total human experience is the place to start. This is the future of the discipline, and those at the forefront recognise that a positive human experience is the deliverable”

management, public art engagement and VIP or upgrade considerations. While signs will always be part of wayfinding, they should be the result of consideration of the holistic journey and experience. 3. Make the design process iterative

The best time to engage a professional wayfinding consultant is at the earliest masterplan stage. Early testing of conceptual human experience models will uncover opportunities but should be reconsidered through all stages as each discipline contributes to the project. In all cases, wayfinding strategies and design can be refined and improved by iteration. Complete user journeys are key, as they help identify interactions between stages of design work and disciplines. 4. Keep users engaged through design of non-traditional

wayfinding elements

Don’t assume that adding signage to a project at the last stages is adequate. Users’ needs have evolved and a successful environment keeps users engaged and keeps them coming back. An excellent way to do this is through non-traditional means such as public art, digital platforms, customer service interactions and design integrated into the architecture and interior. 5. Integrate users, human factors and environments

Designers must factor in user behaviour, abilities, architectural context, user preferences and client goals and aspirations. If developers are looking for a competitive advantage, creating a positive total human experience is the place to start. This is the future of the discipline, and those at the forefront recognise that a positive human experience is the deliverable.


Best-in-class solutions on stand 2D10 at MEE ‘17 Visit the Lucy Electric team on stand 2D10 at Middle East Electricity 2017. As experts in the design and implementation of network automation solutions, we will be showing our latest generation of remote terminal units, Gemini 3. Delivering fast response and timely data, the unique modular design of the Gemini 3 allows flexibility and scalability to be built into network automation projects. And as we continue to develop our global product portfolio, we will also be featuring Aegis Plus and Rapier GX to further demonstrate our end-to-end innovation.

February 14th - 16th 2017 Rapier GX

For more information on our solutions contact us on:

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Big Project ME November 2016  

Big Project ME, your one-stop guide to construction developments in the region, The Big Project.

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