big project me
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Big Project ME, your one-stop guide to construction developments in the region, The Big Project is the Middle East’s leading monthly B2B title for the construction industry.TRANSCRIPT
ALSO INSIDE: MBR CITY IN-DEpTh TENDER upDATES MuhAMMED AL RAIS RAISINg ISLAMIC fINANCE ON-SITE
PUBLICATION LICENSED BY IMPZ
082 JANUARY 2013
www.bigprojectme.com
Cover project
Industry leader
Onsite
Muhammed Bin Rashid City
Muhammed Al Rais
Standard Chartered Building
ThE INDuSTRY’S BEST LINE-up
Big project ME Awards celebrates the best of the best
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CMME_250Wx310H_HR_CMYK_OL.pdf 1 12/20/2012 12:12:50 PM
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CONTENTS
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January 2013
PAGE 28
Riding high as Downtown Dubai is set for major changes.
03 editorial comment
preparing for 2013
Big Project awards proves the industry’s strength in depth
09 the month’s news
the big announcement
the ambitious mBr city is announced in dubai
10 news analysis
combined approach
cross-industry support is required to further the case for Bim
20 in Profile
meet hill international’s climber
muhammed al rais outlines the potential of oman
28 the Big feature
grand designs in dubai
why the city needs muhammed Bin rashid city
40 Big Project awards 2012
the best of the best
the industry gathers for a night of celebration at the armani hotel
and to reward excellence
32 on site
a new standard
BPme tours the recently completed standard chartered Building
in dubai which channels the very best in western and middle
eastern project delivery
44 islamic finance
project financing
how islamic financing of projects does not need to be solely
focused on large-scale infrastructure building
48 comment
in a real estate
what can real estate developers do to ensure that the projects can
avoid being stuck in development limbo
52 tenders
your monthly crib sheet
find out what major (and minor) contracts are currently up for grabs
58 constructive criticism
time to complete
isn’t it a good idea to finish what has been started?
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SETTING THE STANDARD IN COMMUNITY SOLUTIONS
TOTAL COMMUNITY SOLUTIONS
Ejadah provides integrated real estate and community services solutions to more than 75 million square feet of residential, commercial, education, retail, hospitality and mixed-use communities.
Our solutions include:
• Property Management• Facilities Management• Security Management
ejadah.ae
SETTING THE STANDARD IN COMMUNITY SOLUTIONS
6 JANUARY 2013MID
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EDITOR’s COMMENT bigprojectMe.COM
Publisher Dominic De SouSa
GrOuP COO naDeem HooD
ManaGinG DireCtOr RicHaRD JuDD eDiToRiaL
GrOuP eDitOr STepHen [email protected] +971 55 795 8740
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COntributinG Writer cHaRLeS maRTin
maRKeTinG & aDVeRTiSinG
PublishinG DireCtOr RaZ [email protected] +971 4 440 9129
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JuniOr GraPhiC DesiGner peRciVaL manaLaYSaY
ciRcuLaTion & pRoDucTion
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eVenTS & conFeRenceS
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© copyright 2013 cpiall 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.
Stephen WhiteGroup Editor nOW Online You can now get the online
edition every month at: www.bigprojectme.com
2012 was a quiet year for Dubai but you get the
sense that it is daring to dream again. In the last two
months, we’ve seen some major announcements
recently which will hopefully see the city regain its
passion for the extraordinary.
You get the sense that lessons have been learned
from the past decade in Dubai. The need for a
financially sustainable future will hopefully accelerate
greater interaction at all levels. as a new city within a
city is razed, it is in everyone’s interest that standards
are raised within the construction industry.
Beyond Dubai, I think that all of us that ply our
trade in the region can look forward once again with
optimism. Especially when you consider some of
the truly astounding work that has been achieved in
trying conditions.
almost the entire Middle East has seen huge
investment and development in the construction
industry in the past year. at a time when the rest of
the world is facing economic difficulty, the Middle
East has shown its ability to dust itself down and
come out fighting.
and 2013 shows no signs of slowing down.
Thankfully last month’s Big Project awards proves
that we have the expertise to tackle whatever comes
our way. The region is leading the way in terms
of numbers and quality of projects. Many of the
world’s leading project professionals, architects and
contractors are working to ensure what we build here
is setting global standards in terms of design and
build. It is heartening to see that there is progress
from a sustainability stand point too.
The nominations have also highlighted the quality
of the region’s ongoing developments and across
all of this year’s categories we saw submissions of
the very highest standard. It is testament to those
selected as finalists that selecting the winners turned
out to be an extremely tough job for our judging
panel. I would like to take this opportunity to
congratulate all the nominees.
Preparing for 2013
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9JANUARY 2013 MID
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biggest NEWS
big project Me looks in depth at the reasons behind why dubai needs to build the Mbr city on page 28
eMaar to expand dubai Malltitle of ‘WoRld’s lARgest mAll’ is thReAteNed
ProPerty develoPer says that work on exPansion will begin ‘shortly’ and will be comPleted in Phases
Emaar ProPErtiEs, Dubai’s largest
property developer, will commence the
expansion of Dubai mall in Downtown
Dubai, it has been announced.
the expansion will include the
construction of a new high-street
boulevard-style retail destination, as
well as new luxury homes and serviced
residences in the district.
“With the master-plan of the new
expansion now finalised, work will begin
shortly, with the various components to be
completed in phases,” the developer said.
the announcement comes in the wake
of Dubai announcing the commencement
of mohammed bin rashid City, a mega-
project that will be home to the world’s
largest shopping mall.
a $2.72bn theme park project will also
be built in Jebel ali.
“Dubai is looking to strengthen its
position as a tourism hub in the region,
as well as establishing itself as a global
destination that can compete with
markets in the us and some of the major
markets in Europe, such as Paris and
London,” explained mat Green, head of
research and Consulting uaE, CbrE
middle East, to bPmE.
“at the moment, Dubai has beaches and
quality hotels, but it doesn’t really have
the same entertainment drivers, such as
Disneyland or universal studios that you
find in the us. i think that is obviously a
key component of this project and Dubai is
really just looking to cement its position,”
he added.
Emaar also announced that it would
be developing the mbr City’s first
project, the Dubai Hills residential
development. Dubai Hills is a gated
community built around a new 18-hole
championship golf course. Each plot will
be 1,858m2 to 2,787m2.
“Dubai Hills is set to be the first choice
for discerning property investors,” said
ahmad al matrooshi, managing director,
Emaar Properties.
the new project will be between
Emirates and al Khail road and will also
include parks, retail centres, schools and
healthcare facilities.
Emaar Q3 2012 rEsults:
revenue $5,560,312
net Profit $1,606,958
total assets $61,209,547
total liabilities $28,785,505
total EQuity: $32,424,042
big projEct, big numbErs
10 JANUARY 2013MID
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Qatar to tender 1,800MW solar plant
Gulf state looking to increase its renewable energy footprint
Qatar authorities have revealed that they will ask companies to tender for a 1,800 megawatt (MW) solar energy plant, to be built in 2014, according to Reuters. The plant will cost between $10-20bn.
The tiny Gulf state is currently the world’s highest per capita greenhouse gas emitter, as it seeks to increase its renewable energy production.
“We need to diversify our energy mix,” said Fahad Bin Mohammed al-Attiya, chairman of the Qatari organisers of climate talks in Doha. OPEC member Qatar is the world’s
top exporter of liquefied natural gas (LNG). It has so far disappointed environmentalists by failing to set clear targets for reducing its greenhouse gas emissions at the UN talks, arguing its LNG exports help other nations turn from more polluting coal.
The country has been wary of a global shift to renewable energy, fearing it will hit demand for oil and gas from OPEC producers.
Qatar said the power generated by solar energy would mainly power its desalination plants, which are currently gas fuelled. The plant construction is expected to be completed by 2018. Attiya did not provide an exact figure on how much carbon dioxide the plant would displace but said it would be “significant”.
The Jumeirah
Group has
announced an
expansion project
for the madinat
Jumeirah. it will be
completed in 2015
and adds a hotel,
a villa complex,
restaurants and a
commercial centre.
There will also be
retail stores and a
pedestrian precinct.
The current site
has three hotels
– mina a’Salam,
Dar al masyaf and
al Qasr, linked
by a waterway.
There is also a
traditional arab
Souk, with bars and
restaurants.
a new five star
hotel will provide
420 rooms with
sea views. it will
boast several
international
restaurants and
luxury facilities.
The 45 villas and
hotel apartments
will be run by
Jumeirah Group
subsidiary,
Jumeirah Living.
These villas will
have access to a
business centre
and several
specialist services
and amenities.
Gerald Lawless,
president and group
Ceo of Jumeirah
Group said that:
“phase iV is a
natural extension
of the current
three hotels within
madinat Jumeirah
and will be a further
enhancement to
luxury hospitality
in Dubai. Thanks
to the vision of his
highness Sheikh
mohammed
bin rashid al
maktoum and the
support of our
parent company
Dubai holding,
Jumeirah Group
looks forward
to building on
Dubai’s reputation
as a destination
for luxury
travellers with this
magnificent new
development.”
The expansion
project at the
madinat Jumeirah
is part of the
Jumeirah Group’s
aggressive
expansion plans.
it aims to expand
its offering
internationally
with developments
Qatar, Jordan,
egypt, Kuwait,
morocco, india,
Thailand, China
and azerbaijan.
Madinat JuMeirah to be expanded
New five-star hotel will be added to the existing complex in Jumeirah district of Dubai
Qatar to float rail tenders by Q2 2013
QaTar wiLL fLoaT tenders for the
manufacture and supply of rail coaches and
the installation of control systems for the
Greater Doha metro project by the second
quarter of 2013, it has been announced.
The multi-billion project will see a
workshop organised for prospective
bidders to familiarise themselves with
the tendering process and safety aspects
of the control systems, Qatar rail said in
a report by The Peninsula, a Doh-based
newspaper.
Companies with a proven track record
in the manufacture of rail coaches and the
installation of control systems for mega rail
projects can send in workshop requests to:
Qatar rail said that work on the first
phase of the project – that of making
designs and construction sites ready – had
already begun.
BiG ProJect awarDs 2012: wHo are tHe Best coNstructioN comPaNies iN tHe miDDle east? oN PaGe 40
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Jordanian construction industry on verge of collapse, Warns associationContractor association says unpaid government dues crippling local construction companies
Finnish company champion Doors
recently announced a new contract to
supply three hangar doors to Toulouse
company EaDs, makers of the airbus
family of jets. it is an important element
of the new airbus ‘superjumbo’ 380
maintenance hall in Toulouse.
Director mika hosio pointed out that
currently a large percentage of their
business is based in the Gcc, and the
market in the region is growing.
The company is looking at increased
representation in Dubai. champion Doors
has already completed installations in
abu Dhabi and sharjah. They also build
doors for harbour installations.
airbus engineers made a rigorous
inspection of other hangars that
champion Doors has worked on. The
Finnish company has installations all
over the world, and currently invoices to
39 countries.
much of their product range is
military specification and operates over
a wide temperature range from the arctic
to the desert.
“The airbus contract is much more
complicated than just supplying doors.
There was a rigorous selection process,
and even before we were awarded the
contract we were required to provide
exacting planning and co-operation
to support this crucial element of the
project,” hosio said.
Champion Doors eyes GCC hanGar market
Finnish firm wins contract to supply hanger doors to Airbus hub in Toulouse
Jordan’s construction industry may be on the brink of collapse due to unpaid government dues and the sharp drop in output, the Jordan Construction Contractors Association has warned.
A report in the Jordan Times newspaper has said that the
government currently owes local construction companies around $168.9mn, quoting Ahmad Tarawneh, president of JCCA.
Although the government has pledged to repay its debts, it has not kept this promise, Tarawneh said. The value of projects carried out by local contractors
this year stood at $210.8mn. In 2009 it had reached $5.06bn, he added.
Tarawneh warned that the conditions in the market could force companies to lay off employees. There are 2,223 registered contractors in the Kingdom of Jordan employing more than 100,000 people.
QaTari rEal EsTaTE
DEvElopEr Ezdan has
signed an agreement with the
government to build 50,000
residential units by 2014,
as part of a plan to provide
enough accommodation for
the FiFa World cup 2022,
according to a report.
Ezdan is currently working
on several projects, at least
12 of which are expected to
be completed in 2014, with
another 31 to be completed by
2018, said the chief executive
of Ezdan, ali al obaydali.
Ezdan, previously known
as Thani Bin abdulla housing
Group (“TahG”), is one of
the largest and most reputed
real estate companies in the
state of Qatar and the Gcc.
Founded in 1960, the company
operated using the name of
its founder sheikh Thani Bin
abdulla al Thani and was
subsequently transformed into
a limited liability company in
order to avail of the growth
opportunities in the field of
real estate in Qatar.
since its foundation, Ezdan
has been a developer of
residential and commercial
properties in Qatar. The
company caters to all income
segments to satisfy the growing
demands of Qatar’s economy
and its burgeoning local and
expatriate population.
ezDan to builD 50,000 housinG units by 2014
Project a part of the plan to develop country in lead up to FIFA 2022 World Cup
MuhAMMed Al rAIs on Why hIll InTernATIonAl Is FoCusIng on The oMAn MArkeT on PAge 20
30days to drain a lake
dMCC is Converting its 55,000M2 lake in Jlt, dubai to Make a landsCaped park
14 JANUARY 2013MID
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Nakheel to award villa teNders iN JaN 2013
Developer currently assessing tenders for luxury homes at Jumeirah Park
Nakheel, the Dubai government backed real estate developer, has announced it will award contracts for the construction of 381 Legacy villas at Jumeirah Park by mid-January 2013.
The developer said that it is currently assessing tenders for the luxury four and five bedroom homes that are being scheduled to be built.
Work on the project is expected to start by February
2013, with a scheduled completion date in the fourth quarter of 2014.
Legacy Villas are the latest addition to Nakheel’s Jumeirah Park community, which spans 350 hectares and, when complete, will have 2,000 homes. So far, 545 villas have been completed.
The developer said that it has sold more than $326.7mn worth of properties in the Legacy Villas project.
Dubai has been ranked as having the
34th best infrastructure in the world,
according to the Mercer City Infrastructure
Ranking for 2012, making it the only Middle
eastern city to appear in the top 50 list.
an annual list released by the research
consultancy, the Mercer survey ranks
infrastructure in the world’s cities against
a comprehensive checklist. This includes
electricity supply, water availability,
telephone and mail services, public
transportation, traffic congestion and the
range of international flights from local
airports.
“infrastructure has a significant effect
on the quality of living that expatriates
experience. While often taken for granted
when functioning to a high standard, a
city’s infrastructure can generate severe
hardship when it is deficient. Companies
need to provide adequate allowances to
compensate their international workers
for these and other hardships,” said slagin
Parakatil, senior researcher at Mercer.
Dubai’s ranking made it the best in
the Middle east, with the majority of the
region’s cities ranking outside the top 100.
abu Dhabi (72), Muscat (94) and Cairo (95)
are the next highest ranked arab cities,
according to Mercer. Doha is ranked at 102,
while Tunis and Manama occupy ranks 103
and 110 respectively. Meanwhile, baghdad
was the lowest ranking city regionally at
220, narrowly missing out to sana’a in
Yemen, which came in at 219.
Dubai best MiDDle eastern city for infrastructure
The Mercer City Infrastructure Ranking for 2012 rates the world’s best cities
Off Plan sales need to
be regulated a report by
hadef & Partners has said.
The Dubai-based law
firm has called for off-
plan sales to be regulated
correctly or they warn that
Dubai could face another
boom or bust cycle.
Off-plan property sales
were the backbone of
previous Dubai property
deals, with investors buying
off plan and then flipping
the sale. sometimes the
person who occupied the
property could be the fifth
or sixth owner.
investors should be
cautious in relation to off-
plan property. “buying off-
plan property is still a risky
business. Many investors
cannot wait to get back to
the good old days of 2002 to
2008 and another upward
cycle,” hadef & Partners
said in its 2012 report on
the legal state of the Dubai
real estate market.
“however, if the past has
taught us anything, it is that
price rises on the back of
multiple trades of paper (ie.
off-plan secondary market
sales) can lead to a cliff
edge if the projects are not
delivered,” it added.
asked about the future
preferences, many of the
8,500 respondents to the
survey did express desire
to invest in property in the
next 12 months.
however, only 20% were
interested in investing
in the uae and just 12%
wanted to buy off-plan.
law firM calls for off plan sales regulation
Hadef & Partners report says that Dubai could face ‘boom or bust’ cycle
GEZE sets doors and windows in motion. GEZE moves people.GEZE – in motion since 1863.
Thank you for the trust you have placed in us for 150 years.
We‘re celebrating our jubilee.
www.geze.com
16 JANUARY 2013MID
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NEWS bigprojectMe.com
QIA And CAnAry WhArf prepAre $1.6bn London deveLopment
Companies to build 790 homes at the site of Royal Dutch Shell’s London headquarters
Qatar Investment Authority and the UK based Canary Wharf Group plan to build 790 homes at the site of Royal Dutch Shell’s London headquarters, it was announced.
According to a Bloomberg report, the companies plan to develop the property to gain from surging prices and rising rents in the UK capital. Qatari Diar Real Estate Investment Co, a unit of the sovereign-wealth fund, and Canary Wharf Group will spend in excess of $1.61bn (including land purchased last year) to develop eight buildings on the south bank of the river Thames.
Falling
reserves oF
cement stock have
triggered a crisis in
Makkah, with the
price of a single bag
of cement reaching
sar20 on the black
market, media
reports have said.
local contractors
say that they fear
that more than
300 construction
projects will be
suspended due
to the shortage of
cement in the Holy
City. Meanwhile,
other contractors
have said that they
have resorted to
buying cement at
higher prices on
the black market
because they fear
being slapped
with heavy fines
for not completing
projects at the
agreed-upon times.
abdullah al
saeedi, chairman
of the Contractors
Committee at the
Makkah Chamber
of Commerce and
industry (MCCi)
said that the
chamber planned
to raise the issue
with the Council of
saudi Chambers
of Commerce and
industry to find an
immediate solution.
“The crisis
began to unfold
10 days ago when
distributors failed
to meet the rising
demand for
cement,” al saeedi
said, though he
warned that prices
could rise even
further.
a report in Arab
News said that the
shortage could
be more acute
next year, with the
expansion work
of some cement
factories likely
to last at least 18
months, with the
establishment of
new factories likely
to take as long as
24 to 30 months. in
the Taif market, the
price of a cement
bag has reached
sar21, the paper
said, adding that
even black market
supplies have been
reduced to a trickle.
The report added
that the Ministry
of Commerce and
industry said that it
was in total control
of the situation.
Contractors and
drivers said that
factories were not
releasing sufficient
quantities and
allowing only one
full load for each
truck in a week.
Makkah contractors facing ceMent crisis
More than 300 construction projects facing suspension due to cement shortage, says MCI
ksa to invest $806bn into construction projects
Kingdom’s construction market to grow at a rate of 32% to 35% year-on-year up to 2015
THe saudi ConsTruCTion market is
expected to grow at a rate of 32-35% year-
on-year until 2015, according to a report
published by Zawya.
The saudi construction market is likely to
continue to increase in size as the Kingdom
plans to invest $806bn in upcoming
projects, planned until 2030. it is currently
estimated at $1.6bn, it added.
a BMi report forecasts a buoyant 2013 for
the saudi construction industry. Funding
– is unlikely to run dry as the government’s
vast infrastructure investment scheme aims
to diversify away from oil, and keep protests
at bay and stave off public discontent.
BMi forecast a robust 7.5% real industry
growth for 2013, reflecting the significant
number of contracts awarded both in 2011
(140% year-on-year increase), and in H212
(50% increase y-o-y), as well as increased
government spending.
over the medium term, a healthy annual
average growth of 5.6% between 2013 and
2017 is seen.
The city of Jeddah is currently home
to some of the most exciting projects
in the Kingdom. The Jeddah Mayor dr
Hani abu ras accepted the award for civil
development of the year at last month’s Big
Project Me awards ceremony.
4,500Nakheel deliveriNg
developer says it will deliver 4,500 uNits iN 2013
17JANUARY 2013 MID
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Bahrain’s investcorp Buys 1,900 texas, us residential units
$100m investment in Houston comes as Texas market becomes increasing attractive to investors
Bahrain-based alternative asset manager Investcorp has acquired five real estate assets in the US for $100mn, according to a report by Reuters.
Earlier this year, Investcorp acquired four multifamily properties in Houston in a separate transaction.
The entire portfolio consists of 1,900 units and has a collective occupancy of 91%.
It includes: Bristol Square: a 336 unit community in Austin, Waters
Park: a 168 unit community in Dallas, Villages of Meyerland: a 714 unit community in Houston, Cottages of Champions Forest: a 300 unit community in Houston, Villas at Edgewater: a 414 unit community in Houston, Houston-based Mosaic Residential.
Houston’s multifamily market has spiked in recent months. Many recently announced projects incorporated in mixed-use developments had lost steam during the recession but
have jumped back online this year.
“We view Texas as a very attractive marketplace when considering multifamily property investments. Relatively low levels of unemployment, local job creation, a healthy rental market, strong underlying asset characteristics and the overall state of the economy have created attractive conditions for real estate investment,” Mohammed Al-Shroogi, Investcorp’s president for Gulf business, said.
ConCourse Three aT the Dubai
International airport has gone on its first
public trial run, with a possible opening in
the first quarter of 2013 in mind, a senior
official has said.
Built at a cost of $3.5bn, the concourse
will be connected to the two major public
levels of Terminal 3 via an automated
people mover. This will be in addition
to the vehicular and baggage handling
system utility tunnels that will run
through the building, a report in Gulf
News reported.
“We are on track for the opening of
concourse three in the first quarter of next
year as we start its first public trial run on
saturday,” Paul Griffiths, Dubai airport’s
chief executive officer, told the newspaper.
The concourse will be 645m
long, 90m wide and 42m high in the
centre, from the apron level. It will
accommodate 20 aircraft stands, of
which 18 will be exclusively used by the
airbus a380-800s.
The inauguration of the project
will see Dubai International airport’s
passenger handling capacity increase to
75mn. airport traffic is expected to have
crossed 57mn in 2012.
Dubai’s government is to invest
$7.62bn into the fourth phase of
expansion of Dubai International
airport, which will see its total capacity
rise to 90mn by 2018.
DIA eyes Q1 2013 openIng for ConCourse III
$3.5bn concourse will connect to two major public levels of Terminal III
DubAI property to grow At steADIer pACe In 2013
Property market will offer solid investment opportunities to investors
amID PreDICTIons of a boom in 2013,
Dubai based property developer Damac
has offered has released a report about the
property market situation in the emirate, it
has announced.
The emirate’s property market will grow
at a steadier and more stable pace over
the next year, offering solid investment
opportunities for savvy investors,
according to the real estate developer.
“2012 has delivered on our predictions
at the start of the year – prices in the Dubai
market steadily grew with each quarter
outperforming the last. In 2013 buyers
will definitely be able to benefit from this
capital growth, but will need to be very
savvy about where they invest and in which
projects in each area,” said Ziad al Chaar,
Damac Properties’ managing director.
he pointed out that Jumeirah Village,
imPZ and emirates/al Khail road will
grow in value in 2013.
Independent reports have put the
growth in prices of real estate in Dubai
through 2012 at anywhere from seven to
19 per cent, depending on location and the
quality of the project.
The serviced apartment sector is
likely to witness huge demand due to
undersupply. Dubai currently has less than
200 serviced apartment projects compared
to nearly 600 hotels.
18 JANUARY 2013MID
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NEWS ANALYSIS bigprojectMe.com
“They (The clienTs) wanT To use BiM, so leT’s geT all These Bodies TogeTher”
Time is right to champion BIMBIM experts tell Big Project ME that the time is ripe for specially formed government task forces to implement the technology
risTo raTy, eVP, Tekla
At the end of the year, Heriot
Watt University in Dubai
played host to a BIM forum that
gathered some of the foremost
experts in the city for a discussion about the
future of the technology in the region.
During the event, industry experts said
that they are now seeing a raft of clients
expressing an interest in the technology, as
awareness about the need for quality build
and increased life-cycles grows. In these
tighter financial climates, gaining maximum
value out of a project becomes paramount,
and developers are embracing BIM as a way
of doing just that. Risto Raty, EVP of Tekla,
believes that major projects in Qatar, Saudi
Arabia, the UAE and Jordan are benefitting
from the implementation of construction
software technology such as BIM.
With this in mind, experts are now calling
for the formation of a task group or body
that will mandate the use of BIM in the
industry, while also setting up regulations
and standards to be followed.
Dr Ozan Koseoglu, a lecturer for
Construction Management and Surveying
at the School of Built Environment at Heriot-
Watt University in Dubai, said that while it’s
still early days, there’s still a lot that can be
done to encourage further BIM adoption.
“We’re building up relationships with
the industry and also talking with relevant
bodies about making a standard approach
to BIM for the industry over here, bringing
government, industry and universities
together,” he explained further. “They (the
clients) want to introduce BIM, so let’s
get all these bodies together. Rather than
changing everything from scratch, we need
to think about how we can work together.”
Raty adds that the next step in the
process would be to find a ‘champion’ for
the technology within the government,
someone with enough understanding of the
technology, business models and legislation
to drive the changes through.
“The support is finally coming, but now
we need a champion within government.
It could be an individual or a small group,
but it’s a visionary, multi-skilled role that
must incorporate understanding of projects,
business models and technology,” he
explained, backing Dr Koseoglu’s call.
While organisations like BuildingSMART
have done tremendous work for the BIM
industry, Dr Koseoglu cites the examples of
the UK and US as successful drivers of BIM
mandating, integrating the industry on a
number of levels to get the best results.
“[If you follow the US/UK methods]
once you come to the construction phase,
you’ve already identified the clashes,
you’ve already built the project in a virtual
environment and you’re ready to build the
project,” he said.
Risto Raty added that the time is
ripe for the government to take the lead
and organise an endorsed education
programme, with BIM standards in place.
“It’s not a question of BIM being
adopted. It’s just a case of how quickly.
How companies will train staff and how
governments will help support that
financially. How companies overcome
training their employees will be the next
hurdle,” he explained.
Dr Koseoglu added that the UK
government sets targets for its BIM tasks
force and that encourages it to work with
the industry and education departments
to deliver. As things slowly fall into place
and attitudes change, it’s becoming
increasingly clear that the mooted
task forces are the way forward for the
industry, providing a clear and organised
mandate for both the industry and clients
to follow. All the pieces are now in place,
all that remains is for the government to
put them together.
dr ozan koseoglu, herioT-waTT uniVersiTy
CONTACT:
PUBLISHING DIRECTORRaz Islam +971 4 440 9129 [email protected]
COMMERCIAL DIRECTORMichael Stansfield +971 4 440 9128 [email protected]
MARKETING MANAGERCarole McCarthy+971 4 440 9157 [email protected]
Big Project ME will be hosting a Buyer & Sponsor only Golf Day in March and
October next year. The aim is for you to meet the
contractors and consultants on a one to one basis and network in a relaxed, fun-
filled environment!
GOLF DAYS
CONTRACTORS CUP
CONSULTANTS AND ARCHITECTS CUP
MARCH, 2013 OCTOBER, 2013
20 JANUARY 2013MID
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IN PROFILE MOHAMMed Al rAis bigprojectMe.cOM
Gavin Davids talks to Mohammed Al Rais, SVP and managing director of Hill International ME, about tackling Oman, Iraq and the project management market in the GCC
cliMbermeetiNg hill’s
optimistic oN omANAl Rais is leading the Hill International charge in Oman, a country he feels has a lot to offer.
21JANUARY 2013 MID
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IN PROFILE MOHAMMed Al rAis
Back in 1977, Dubai was not
much more than a sleepy little
trading town, with business and
construction focused around the
Creek. It would have been impossible
to imagine back then what the emirate
would eventually become.
The same could be said for the likes of
Oman, Doha, Abu Dhabi and even Saudi
Arabia: countries and cities that were
unrecognisable compared to their present
state.
It was into this environment that
Mohammed Al Rais came to the region,
looking to establish himself in the nascent
construction industry. With more than 35
years of accumulated know-how behind
him, Al Rais is perfectly positioned to
comment on the stupendous growth that
the GCC region has undergone since
those distant days.
As a senior vice president and
managing director with Hill International
(Middle East), Al Rais is tasked with
overseeing the Middle Eastern operations
of the firm’s Project Management Group.
As part of this, he is required to formulate
and guide the strategic direction of the
company’s operations in the UAE, Kuwait,
Bahrain, Qatar, Saudi Arabia and Oman.
In addition, he oversees operations in
Lebanon, Jordan and Iraq.
Having recently won a contract in
excess of $110mn from the Omani
government for the Muscat and Salalah
International Airports, Al Rais says Hill
International is eyeing the market in the
Sultanate as it looks to get a leg up on the
competition.
“The Omani government has embarked
on a very ambitious programme. There’s
a lot of infrastructure, a lot of roads, the
issue of the rail as well, there’s also ports.
There’s a very aggressive programme for
development, which is set by the Sultan
and the Omani government. What we
are looking for is to be part of that,” he
explains.
Although Hill International is the
engineer for the Muscat and Salalah
airports, it was only appointed after the
Sultanate decided to cancel its contract
with Cowi-Larsen after December 2012.
Work on the projects began on 1 January,
2013 for Hill International.
However, Al Rais says that those two
“It wIll be A PM-CM Role thAt we’Re lookINg foR wIth the MINIstRY of tRANsPoRt, ANd hoPefUllY oUR Role wIll exPANd. thIs Is whAt we’Re AIMINg foR IN oUR eNtRY INto oMAN”
projects will prove to be the exception
to the rule, as the focus will remain on
project and contract Management.
“We will target the PM-CM scope of
services, not like the Oman airports,
where we agreed to become the engineer
and manage all the issues. It will be a
PM-CM role that we’re looking for with
the Ministry of Transport, and hopefully
our role will expand. This is what we’re
aiming for in our entry into Oman,” he
says confidently.
This focus on the Sultanate is no
coincidence, Al Rais says, as the company
has identified it as a market it would like
to enter into before competitors get wind
of the opportunities there.
“We’ve focused on Saudi Arabia for
the past few years, but our next focus was
always going to be Oman, and we’ve been
doing so for the last eight months. To be
able to get into the Omani market is a
fantastic opportunity for us.”
“For us (as a company), we move very
carefully and steadily. We study what we’re
getting into and we don’t take a haphazard
HIll’s BencHmarks
n Abu Dhabi:
Etihad Towers Sheikh Zayed Grand Mosque ADNOC HQ Sky Tower Midfield Terminal Complex
n Dubai:
Emirates Hills Palm Jumeirah Capital Towers Dubai Int Airport
n Oman:
Musacat and Salalah Airports
n Saudi Arabia:
Jabal Omar Development Tabuk Cement Plant
n Lebanon:
Beirut Terraces Residential Tower
n Qatar:
Navigation Tower
22 JANUARY 2013MID
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them up to speed with the best practices
and procedures that are in effect in the
industry. While it may be a slow and
challenging process, it’s ultimately a
rewarding experience for the company
and their clients in government.
“We already have a contract with
one ministry in Saudi Arabia. We’re in
negotiations with another ministry in Iraq
as we speak, to actually set up processes,
procedures and contracts, standardisation
of contracts and standardisation of
procedures, so people will be able to
work. It’s been very slow, definitely, but
it’s happening now.”
He asserts: “It’s a matter of training
them; it’s a matter of putting a process
and system in place, so that at least the
bureaucracy and the old way of doing
things become more streamlined.”
Pointing out the success Dubai has
had in this regard, Al Rais holds up the
emirate as an example of what can be
achieved if government and industry
work together. Encouragingly, the rest
of the region seems to be following suit,
with standardisation and regulations
approach to countries or projects. We do
our analysis, risk mitigation as far as what
projects we’re going into, where we’re
walking into. We select our clients like our
clients select their PM-CM. It’s not a matter
of just jumping into anything. We’re very
selective in what we approach and that has
proved very successful (for us),” he explains.
“There’s no sense in getting into
trouble projects were you eventually
don’t get paid or get stopped, (something
we’ve seen throughout the Gulf ). It was
for a very short period, but it did happen.
So for us, it’s very important that we
select our clients and then we move. At
least we can start supporting from day
one then.”
This attitude is what will stand Hill
International in good stead as it moves
into new markets, Al Rais says. While the
immediate focus is on Saudi Arabia and
then Oman, he says that the company
aims to expand its project management
operations, with opportunities in Bahrain,
Abu Dhabi and most excitingly, in Iraq.
“In Iraq, we’re going ahead with five
new projects. We’re going into universities
with the Ministry of Higher Education and
the Ministry of Youth. We’ve just started
another 30,000 seat stadium in Baghdad.
So there’s a lot of work going on there, but
we haven’t really pushed it so far. We’re
solidifying Saudi, we’re opening up Oman
and the next step will hopefully be in Dubai
as well,” he says.
One crucial element of the work Hill
does in these markets is helping to bring
“It’s a matter of traInIng them; It’s a matter of puttIng a process and system In place, so that at least the bureaucracy and the old way of doIng thIngs become more streamlIned”
23JANUARY 2013 MID
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becoming increasingly common. This
becomes even more important in light
of governments in the region becoming
increasingly vocal about promoting local
companies and contractors for jobs in
their countries. In such a scenario, the
need for efficient and effective project and
contract management becomes vital.
“The GCC countries are aware of
PM-CM and they’re using PM-CM, not
in everything, but for most things. That’s
very encouraging. The UAE and Dubai
is ahead of anybody else in this regard,
but everyone is looking to catch up and
everyone is catching up; this is hugely
encouraging,” Al Rais muses.
“In Iraq, project management was
not part of the structure, so that is now
happening. It’s encouraging that now
we’re being called in to commence
project management as well as general
formats of consultancy, contract
management and whatever. It’s an issue
of support and setting up systems.”
He adds: “The issue isn’t bringing the
expertise, but to ensure that whatever
expertise is coming in, will do some
training in the local market. So at least
there’s a transfer of knowledge and basic
training of project management as well,.
This transfer of knowledge is crucial if
governments are serious about allowing
local contractors access to their major
projects, Al Rais says. While he stresses
that it’s important to involve local firms
in projects, he warns that projects could
easily go awry if the firms don’t have the
fundamentals in place.
It is here that the work that Hill
International does with ministries comes
into play, with the onus on ensuring that
local companies are prepared to embrace
all the A to Z’s of project management,
right from design and budgets to
reviewing everything up front.
“In Iraq, there are a lot of companies
coming in and there’s a lot qualifying
(going on) for these companies. And
that’s why there were a lot of problems in
kick-starting these projects three or four
years ago,” he says.
“Anybody who had a construction
company could walk in and they could
take jobs, which hurt the big boys who
could deliver. At the end of the day, those
companies walked away, thus the non-
prequalification levels for contractors hurt
Iraq a lot in my opinion.”
“The top internationals will not get
work when they’re competing with
small companies and I think the market
of Iraq has learnt from that and is in a
correction phase. There are still a lot of
problems,” Al Rais claims.
However, he again refers to Dubai
as the standard that the rest of the GCC
needs to follow, pointing out that the
emirate has utilised its resources to the
best of its advantage.
“Dubai, I believe, is one of the best
construction markets in the world. It is
a pot of cultures; it is a pot of standards,
people from all over the world,” he says.
“Look at Dubai five or ten years ago,
wbefore it started to peak. Everyone
from all over the world was here, South
Africans, Europeans, the Far East,
Philippines, the Arab World, Indians,
everyone was here.
“They created a pot of cultures, not
only in living, but also in construction.
Then when Dubai started kicking off,
they utilised the best systems, the most
modern techniques, they used the best
and the best and the latest.”
“The construction industry in this
country leads the field, from fast track
to delivery to standards. Look at the
infrastructure and the highways, other
countries would take twice as much
time to build these things. Dubai leads
and other countries will follow,” Al Rais
concludes, confidently and with more
than a touch of optimism. n
“Anybody who hAd A construction compAny could wAlk in And they could tAke jobs, which hurt the big boys who could deliver.”
The region’slargesT ConsTrUCTioneQUiPMenT eXhiBiTion
Co-located with Saudi Building & Interiors Exhibition
14-17 April 2013Jeddah Centre for Forums & EventsKingdom of Saudi Arabia
Find out more. Visit www.constructionmachineryshow.com© 2013 Corporate Publishing International. All rights reserved.
Following a successful 2012 event, the Construction Machinery Show, the largest construction machinery exhibition in the Gulf region, returns to Jeddah between 14-17 April 2013.
With the total value of awarded construction contracts reaching $72 billion in 2011 and with much more to come, the Construction Machinery Show is the ideal opportunity for buyers of construction machinery and heavy equipment to meet manufacturers, suppliers and distributors.
A total of 450 billion Saudi Riyals ($120 billion) will be spent on construction projects between 2012-2016, and much of the development is focused on turning Jeddah into a world class city, making it the perfect location for the Construction Machinery Show.
The 2012 exhibition proved that Saudi Arabia is the most dynamic country in terms of construction in the region, drawing praise from exhibitors for the quality of his attendees and the number of deals signed on the show floor.
With over 20,000 sqm of space at the Jeddah Exhibition Centre dedicated purely to construction equipment - the Construction Machinery Show in 2013 will once again stand out as an event where visitors come to buy.
We will be back in April 2013, Will you?
Organised byPower and Lighting byGold Sponsor
26 JANUARY 2013MID
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BIG FEATURE MBR CITY bigprojectMe.CoM
WhY Is DuBaI
DReaMIng agaIn?
27JANUARY 2013 MID
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BIG FEATURE MBR CITY
In November 2012 HH Sheikh
Mohammed bin Rashid al-Maktoum,
Prime Minister and Vice President of
the United Arab Emirates, announced
Mohammed bin Rashid City. It is a
massive project, the largest announced
in the Arabian Gulf for years.
“The current facilities available in
Dubai need to be scaled up in line with
the future ambitions for the city,” Sheikh
Mohammed said.
The development, a joint venture
between Emaar Properties and Dubai
Holdings, will be located between Sheikh
Zayed Road, Emirates Road and Al Khail
Road. The announcement was vague in
terms of who would finance it, what was
the driving force, and specific details.
At its heart is a public park Sheikh
Mohammed said would be 30% larger
than London’s Hyde Park. And the
development means that Dubai will retain
the world’s largest shopping mall. There
are going to be a 100 new hotels to add
to the 400 already tussling for tourists.
Separately there is a canal system with
waterborne public transport. His Highness
also announced the launch of the ‘Dubai
Modern Art Museum & Opera House
District’ in Downtown Dubai.
Literally weeks after the announcement
His Highness, unveiled Dubai Hills, the
first project in the new ‘city within the city’
development. The new gated community
will provide ultra-luxury residences,
designed to the bespoke considerations
of the owners. Truly unparalleled in
the residential project development
history of the city, Dubai Hills ushers in
a brand-new lifestyle that will set a new
mark in high-end lifestyles, following
the enormous success of ‘Emirates Hills’
developed by Emaar.
The announcements were greeted
with caution by some members of the
construction community, some cynicism
by others and with joy by those companie
who will be getting RFP and Requests to
Tender notices.
Nicholas Maclean is the managing
director of CBRE in the region. He points
out an anomaly in the way that Dubai
operates. If you split the market into
residential, office and retail you find
differing results. Currently office space is
showing roughly 47% of the overall stock
unoccupied. This will rise to 50% this year.
Yet there is a genuine shortage of good
office space and rents are rising near the
Sheikh Zayed Road artery.
“There is a lot of offshore money that
would like to enter the Dubai market but
the investment opportunity is simply not
there,” says Maclean.
There are also, according to Maclean,
at least three clients of his trying to obtain
50,000sqm properties in Dubai.
In terms of residential property CBRE
estimates that some properties are raising
their rents this year by 26%. So there
are strong indications of need for more
housing stock in the city.
One of the major concerns is how much
this will cost and how it will be paid for.
Sheikh Mohammed offered no word on
who would finance the emirate’s latest
project, how much it would cost or the
timetable for construction. He said only:
“We have to start work immediately,”
while indicating that investment would
total several billions of dollars. He
indicated that they had the finance
though but declined to offer its source.
We can only guess how it will be paid
for now but BPME can offer a guide to at
least some of the costs. There will be at
least a hundred new hotels, and in Dubai
an average hotel has 250-350 rooms.
Assuming most of the hotels are five-star,
the cost is roughly $110 million per hotel.
“YoU cAN’t micRo mANAge A citY, ANd some elemeNts thAt seem odd ARe pARt of A lARgeR plAN. plANNiNg iN dUbAi hAs mAtURed. it hAs gRowN Up”
Can the construction of Mohammed bin Rashid City help kick-start a new boom for the industry in Dubai just when we thought the dream was over? Charles Martin writes
28 JANUARY 2013MID
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BIG FEATURE MBR CITY bigprojectMe.CoM
Let us assume that there will be some four
star hotels in the mix, they come in at $68
million per hotel.
The project includes the largest mall in
the world, the Mall of the World. The cost
per square metre of a mall is approximately
$2,500 USD. A typical UAE mega mall
project is roughly 200,000 square metres in
scale. The Dubai Mall is currently roughly
twice the size of the Mall of the Emirates,
so would cost more than a billion dollars.
The Dubai Mall is being expanded though,
so if we assume the new Mall of the World
will be at least five times the size of the Mall
of the Emirates you would expect a cost of
$2.5 billion dollars.
One of the major elements of the MBR
City project is the Universal theme park,
developed in partnership with Universal
Studios. There is a definite advantage to
a theme park in MBR City. Imagine trying
to sell Dubai as a holiday destination to
someone in central Europe. The flight is
roughly the same as to Orlando, Florida.
Dubai is open on two of three holidays
in a year; it is not a summer destination.
Currently justifying Dubai as a family
destination is a hard sell. Matthew
Green, head of research at CBRE agrees:
“Expanding and improving tourism-related
infrastructure is clearly required if Dubai is
to compete on the global tourism stage.”
In 2012 it was estimated that Dubai
attracted close to 10 million visitors, up
around 10% on 2011 figures. However,
to meet its long-term goal of 15 million
tourists there will need to be a prolonged
period of solid visitor growth. This will
of course require additional investment
in order to create tourism drivers in the
form of leisure and cultural attractions,
as well as an overall improvement in
the emirates infrastructure so that the
city can handle the additional tourism
capacity for years to come.
Matthew Green explains: “Although 100
hotels have been suggested for MBR City,
we see this level of commitment as being
spread over several decades and phased
so as to avoid negative impact on supply
and demand fundamentals. With around
55,000 hotel keys already in the pipeline
and a further 14,000 new rooms to be
added by 2015, there is already significant
supply to be added to the hotel inventory
in the medium term.”
The main consideration, from a
construction view is, who is going to build
MBR City? There are also questions such
as the potential speed of the development
and what effect it will have on the
infrastructure of the city. Dubai’s new city
within a city will be built by Dubai Holding,
a conglomerate owned by the Sheikh, and
Dubai’s premier real estate firm, Emaar
Properties, according to a press release
from Emaar.
But what about the infrastructure? Wael
Allan of Hyder Consulting explains: “The
infrastructure is there. You need roads,
drainage and these have been strategically
developed over a number of years. You
need transport and the RTA has this
planned. The Dubai Hills announcement
makes perfect sense. You bring the people
in and they use water. Then you recycle
that water and use it to make parks and
green features.
“The transport system here is very
good, probably the best in the GCC.
The combination of the Metro, the road
system and the taxis are great. In JBR the
tram system is being built and feeder
buses bring people into the central zones.
Dubai is one of the only cities in the world
“Most people tAlk, we do thiNgs. theY plAN, we Achieve. theY hesitAte, we Move. we ARe pRoof thAt hUMAN beiNgs hAve coURAge to tRANsfoRM A dReAM iNto ReAlitY”
goiNg dowNtowN
Dubai’s Downtown area will be transformed by the projects that have been outlined for MBR City.
where you can live without a car. If you
compare it to Los Angeles for example,
it has a comprehensive mass transit
system. The integrated characteristics of
Dubai’s transport system has improved
exponentially in recent times.
“Before any development is proposed
the government calls in consultants and
they define the need.Planning has matured
a lot since Hyder started working in Dubai
more than 30 years ago. It has grown up.
You have to understand with cities you
start with the larger picture and then zoom
in. All of the elements lock together and
no one part can be developed without
reference to the others. Crucially you can’t
micro manage a city, and some elements
that seem odd are part of a larger plan.”
Amongst all this good news though,
are some voices of dissent. Mohammed
Al Rais, managing director of Hill
International, says that: “Dubai needs to
complete stalled projects before it embarks
on new projects such as the MBR City
and the Business Bay Canal project. The
MBR City is actually a continuation of
Business Bay, while the Canal project,
will link it with the other side (of Dubai).
It was something that was discussed,
from memory, almost eight years ago.
But it was never taken up at that time.”
Hyder’s Allan offers an opposing
view: “I can see the argument, but the
canal project will not affect the overall
transport of the city, maybe 2-4% and
that will mostly be tourist related traffic.
Obviously the canals will add more
waterfront developments to Dubai and
those properties are desirable. As for
developing what we have, there are good
developments and bad ones. The good
ones will eventually get developed.”
The crash of 2008 was not Dubai’s fault,
it was the fallout from the world economic
crisis originating in the USA and passing
across Europe like a virus. Dubai appears
to be bouncing back but the rating agency
Moody’s downgrading of Emirates NBD,
Commercial Bank of Dubai and Mashreq
bank is a reminder that the bad debts of the
last boom weigh on the Dubai economy.
One thing is sure, though. As Nicholas
Maclean of CBRE points out Dubai is a
sort of Middle East-light for investors: “All
things being equal investors will choose
Dubai as their point of entry into the
Middle East. It is easy to attract staff here
and when they arrive there is the ability for
them to have a good social life. Also Dubai
is safe and family friendly.”
Wael Allan of Hyder agrees: “Without
specific financial incentives, such as
those offered by Abu Dhabi, Dubai would
naturally be the first choice for corporates.”
The question is whether the Sheikh
making announcements like MBR city
is an attempt to prime the pump and
talk up Dubai to the world. Wael Allan
says, “that’s the job of a ruler. It’s what
he should be doing. Only he has a clear
vision of where Dubai is going and he is
there to drive progress forward. It’s exactly
the same as the head of any other country.
He is our leader and represents Dubai to
the world.”
CBRE’s Green agrees: “The MBR City
project is clearly a long term strategy which
requires a sensible and methodically
planned phasing system to deliver supply
to the market over the next 20-30 years.”
Perhaps the last word should come from
Sheikh Mohammed: “Most people talk,
we do things. They plan, we achieve. They
hesitate, we move ahead. We are living
proof that when human beings have the
courage and commitment to transform a
dream into reality, there is nothing that can
stop them.” n
29JANUARY 2013 MID
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BIG FEATURE MBR CITY
Retail theRapy
Anyone who doubts the efficiency of
Dubai’s retail environment should seek
a padded room, because the current
malls are among the healthiest and most
profitable in the world.
The Dubai Mall is already the world’s most
visited shopping and leisure destination
having welcomed over 54 million visitors
in 2011, and more than 44.5 million
visitors from January to September 2012,
an increase of approximately 15 percent
compared to the same period last year.
With 1,200 retail stores and 160
F&B outlets, the mall has several world-
class leisure attractions including Dubai
Aquarium & Underwater Zoo.
Ahmad Al Matrooshi, Managing Director
of Emaar Properties, said: “The Dubai
Mall has established its central identity in
the global retail sector by serving as the
ultimate choice of shopping and leisure
for nearly 2.5 billion people who are
only a four-hour flying time from Dubai. In
fact downtown Dubai is the most visited
developed site in the Middle East, not
religious site, but developed site.”
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Over the last few years there have
been a lot of award ceremonies in
Dubai. Each has heralded the new
dawn of whichever industry they
were lauding. There have been so many
that few would recognise real light as
anything else but a blinding distraction.
This month, though, the 400-strong
crowd, gathered at the Big Project
awards in the Armani Hotel in Dubai,
showed a quiet confidence. And these
are the people who make it happen. It
seems that everything in Dubai is built
on somebody’s vision. The assembled
crew at the Big Project ME awards
take visions and turns them firstly into
construction sites, and finally into
gleaming icons of wealth and power.
This confidence was quiet, but there
was an underlying power. One man
BPME spoke to employs over 17,000
people, and he was genuinely optimistic.
This quiet competence was reflected
in the prizes. These were not baubles
awarded for some fashion brand, they
reflected real achievement and solid
foundation.
Paul Floyd, MD of sponsor Famco,
highlighted this in his speech. He spoke
of weathering storms and quoted a
proverb ‘Calm waters won’t make a
skillful sailor’. He surmised that every
one of the people in the room had faced
a storm and come through it. As he left
the stage host Ben Jacobs wittily took
pains to remind us that we had been
listening to Paul Floyd, as opposed
to Pink Floyd. It got the best laugh of
the evening. The whole tenure of the
evening reflected that of the industry.
It was substantial and there were a lot
of powerful people in the room. But the
tenure was understated and mature.
The industry has suffered but the future
is brighter and the infrastructure of
whatever comes next in Dubai will be
planned, bulldozed and built not only by
the prizewinners, but by every guest in
the room on that auspicious occasion.
“ON behAlf Of mY peOple iN JeddAh, we ARe veRY delighted tO Receive this AwARd. theRe ARe mANY pROJects Right NOw, whOeveR visits JeddAh will see this veRY cleARlY”
A WINNING EVENT
31JANUARY 2013 MID
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Jeddah municipality – his excellency dr hani mohammad aburas, mayor of Jeddah, on behalf of the Jeddah municipality.
Civil Development projeCt
etihad toWers, hill international
iConiC StruCture of the Year
“first of all, on behalf of my people
in Jeddah, we are very delighted
today to receive this award
because we have recently opened
a huge project on the waterfront.
that project is the one we were
nominated for, and won,” said
he dr hani mohammed aburas,
mayor of Jeddah.
“this project for us is very
important because Jeddah is a
coastal city. our asset is the sea
and we need to capitalise on that.
this project is a destination now
for the people of Jeddah. it’s very
important for us, because they
spend their weekends, they spend
their vacations, they spend their
time there. Whatever makes my
people happy is very important
to me. this is one of the projects
that i’m really proud of. Jeddah
is undergoing a huge number of
projects. Jeddah is a workshop.
We have many projects on roads,
bridges, underpasses.”
“We have mega projects;
mixed-use communities. early
next year, we will continue the
waterfront project because we
have now completed 4.5km, but
we have 13km of waterfront.
We are working on a project
called the remote city, and in
addition to that we are working
on environmental projects. there
are many projects right now and
whoever visits Jeddah will see this
very clearly. i am really proud of
this. alhamdulillah.”
the etihad towers represents a new benchmark
in iconic developments across the abu dhabi
skyline. this visually stunning landmark consists
of five towers, bringing together residential,
retail, hospitality and leisure facilities to create
a unique ‘lifestyle’ development, enhancing the
city’s growing reputation as a world-renowned
business and resort destination.
hill international was awarded the contract
by hh sheikh suroor bin mohammed al
nahyan to bring his vision an inspirational,
prestigious and desirable landmark which is
unrivalled in scope and magnitude to life.
raouf Ghali, president of hill international
project management operations, told bpme
how the award is seen by his company: “it’s
recognition of the hard work and dedication of
the entire team which starts with his highnesses
vision for the whole project, the owners team for
realising it and allowing and having faith in us
to implement it.”
“to be involved in such a project from the
start and to achieve such a high standard is
fantastic. We build many high rise towers but
we believe this is the most iconic and it makes
a benchmark for the entire industry. this project
also won the cmaa award in chicago. it is
recognition for hill international that we are
really very proud of.”
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Developer of the Year Sorouh real eState
Sorouh had an outstanding
2012, handing over a series of
residential, retail and commercial
projects. It is the asset manager of
a multi-billion dollar mixed asset
class portfolio which boasts a gross
floor area of 20.2 million square
feet and 10,300 residential units.
to date, Sorouh has ensured
the successful delivery and
management of 13 significant real
estate developments in abu Dhabi,
increasing the asset management
base, improving capital formation,
thus creating greater bottom line
visibility of recurring income
in a challenging real estate
environment.
Gurjit Singh, chief operating
officer, accepted the award: “as a
responsible developer here in the
uae, we’ve always focused on the
customer and our deliveries of the
various developments have been
in relation to what the customer
wants. So from the time the project
is conceptualised to when it’s
delivered and managed, we have
customer centricity at the forefront.”
“In the coming years, we will
continue to focus on investment
property base and increasing
our recurring income base and I
think that’s a very important facet
of giving concentration to our
stakeholders and shareholders.”
By any standards 2012 was a great year for
Whitney morris, project engineer at Desimone.
this month she won the ‘Young engineer of the
Year’ award on behalf of her company.
In just two years Whitney has made
invaluable contributions to projects such as the
regent emirates Pearl hotel and the al hilal Bank
tower, where she provided complex analysis and
design of both buildings’ structures.
Speaking of the award she said: “I’m very
humbled and I’m very grateful to be recognised
this way. hopefully I can keep doing more good
work. It’s a nice pat on the back for sure because
Iwe’ve have been working really hard. It’s nice
to be recognised this way and it gives me more
oomph to keep going.”
She feels lucky to have been recognised: “I
think honestly it’s the exposure I’ve had to the
projects out here. I’ve been really lucky with the
type of buildings I’ve been able to work on”.
earlier in the year on 20 august she also
married Gorka Garbayo, a senior project
engineer at Desimone.
She will be busy next year too: “Next year
we’ve got lots of new stuff. Some multi-functional
arenas, some food and beverage developments
and a big mosque.”
Young engineer of the Year WhItNeY morrIS, DeSImoNe
ever since it was
established in the late
1970s the company
has set out to raise
awareness of green
issues and corporate
social responsibility
within the uae. DBB
has proved yet again
that it is one of the
industry’s leading
sustainable companies.
It has also been
working relentlessly
on a world class
programme of water
conservation.
Wail a Farsakh –
General manager of
Dutco Balfour Beatty,
talked about the Water
conservation award:
“Well it’s recognition
of people’s efforts on
site and sustainability.
We’re launching a
sustainability drive in
DBB, as part of the
overall ethos of Balfour
Beatty. We’ve been
implementing it and it’s
nice to be awarded,
and to get the message
across to everybody
in the industry. It’s
definitely given us a
boost and encourages
us to work harder and
to continue. When it
comes to sustainability,
everyone is a winner;
it’s as simple as that.
What we’re trying
to do is conserve the
planet to ensure the
next generation has
something to look
forward to. We are
looking outside the
uae as well, because
the Dubai market has
come down a bit. But
during the recession
we were the only
company working on
three projects in the
uae worth $2bn.”
Best Water Conservation projeCt Dutco BalFour BeattY
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ContraCtor of the Year SIX ConStruCt
SuStainable Solution of the Year
unIbeton ready MIXSix Construct has been fundamental in bringing
the first green hospital to the Middle east. the
construction of the Cleveland Clinic, on Sowwah
Island, represents a major challenge in terms
of logistics and organisation, but it remains on
course for overall delivery in May 2013. Six
Construct is the general contractor and leader
in the building of the 364-bed world-class
hospital. With its 342 examination rooms, the
clinic will provide the latest medical technologies
in the fields of surgery, telemedicine and MrI
imaging in this Middle east region, all in a
luxurious surrounding.
Patrice thomas (pictured centre), business
project support manager, accepted the award
on behalf of Six Construct and told us about
what the awards meant to him: “Six construct
has been working in the uae for more than
45 years. We’ve been using all our resources
and technicality and engineering to deliver our
projects on time. It’s a good recognition of the
work that we’ve delivered.”
“We don’t just look at the uae we also
explore opportunities in Kuwait, Qatar, Saudi
and in abu dhabi as well. We have a portfolio
of projects in buildings but also in marine
projects where we have specialised for more
than a hundred years, as well as industrial
projects. We will consolidate our projects in the
coming year.”
this category rewards
those companies
willing to go the extra
mile in supporting the
sustainable ambitions
of projects in the
region.
the companies
nominated this year
all demonstrated
that the construction
industry in the region
has some of the most
forward-thinking
partners in the world.
unibeton’s
environment-friendly
concrete production
facility in Qatar is
dedicated to the
manufacture and
supply of ‘green’
concrete to Phase 1
of the massive new
doha Port Project.
Combined with
unibeton’s innovative
concrete-mix designs,
low carbon emission
products and green
technologies, the
massive plant has the
capacity to fulfil the
requirements of Phase
1, which needed a
colossal 1,500,000m3
of concrete to pour
the walls of the port.
at the same time
unibeton helped
ensure there was a
reduction of carbon
emissions by 75%.
dr Huiqing He,
deputy operations
director, Sustainability,
(pictured top right)
accepted the award
on behalf of unibeton:
“I think every award
that we achieve
becomes a driver, a
motivator for further
improvement, that’s
how we look at it.
We found that the top
management is very
supportive when it
comes to sustainability
development. this
is why we have a
specific person like me
looking after this.”
“We try to keep up
with the market and
try to see what the
best practices are that
we can incorporate
into the business.
any achievement or
recognition, we’re
quite proud of it, but at
the same time, we look
to see what we can do
better.”
this award was won by the
department of transport abu
dhabi, an organisation driving the
field of infrastructure forward in
the region. this award winner has
shown over the past decade that it
is possible to manage complicated
infrastructure challenges, while
delivering tangible improvements
to the lives of those that live within
its area. the dot of abu dhabi
is considered one of the major
infrastructure developers in the
region and is opening up the
construction market in abu dhabi.
this has been made possible by
the creation of a sound commercial
and contractual entity to facilitate
the dot’s works and enable it to
achieve and successfully deliver its
infrastructure projects in a timely
and high quality fashion.
Ihab al Khatib, consultant to
the procurement and contracting
division with the dot accepted the
award on behalf of the department:
“this award makes us proud
as we’re still a little bit of a new
organisation. We were established
in 2006 and we have the second
largest budget in abu dhabi. We’re
proud that we’ve never received
any claims related to measurement
or quantity surveying. We’ve
established a good partnership with
all our contractors and suppliers.
this award will be motivation for us
to excel in the future.”
QuantitY SurveYor dePartMent of tranSPort, abu dHabI
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Consultant of the year
Hyder consulting
Hyder consulting may be one of the oldest
recipients of a Big Project award - the
company can trace it roots back more than
150 years in europe. during that time it has
worked on some of the world’s most iconic
buildings and structures, including sydney
Harbour Bridge, tower Bridge in london, and
the Burj Khalifa in dubai.
ian dawson, technical director at
Hyder, received the award on behalf of
the consultancy. He explains some of the
challenges they face: “We are 4500 people
around the world, and we’re expanding but in
a conservative way. some of our competitors
have gone a bit crazy and have suffered
in that respect. We’re one of the oldest
consultancy firms in the world, 1894 i think
we started, so we’re traditional, blue chip
consultancy.”
the dubai office of Hyder was pleased to
be recognised: “For the me this is a great win
for us. the market has been stressed over the
last few years and we have a business plan in
place to expand in the region. saudi, oman,
Jordan, Kuwait, these markets. And Qatar is
a big opportunity for us at the moment and of
course so is uAe.”
this award for outstanding
development of the year is given
to organisations and companies
that have taken on large scale
projects and won. this year’s
award winner damac has
demonstrated an astounding
ability to deliver world class
projects on time, and to the
highest standards possible.
damac’s Al Jawharah project
on the Jeddah corniche in the
Kingdom of saudi Arabia will
be a spectacular landmark. it
will also be one of the tallest
developments in saudi Arabia’s
expanding cosmopolitan ocean-
front city.
niall mcloughlin (pictured
above, left), senior vice president
of damac Properties, was
delighted with the award.
“it’s the pinnacle of a lot
of hard work from so many
people over so many years. And
especially for Al Jawharah, which
is one of our first projects in saudi
Arabia. to work so closely on that
and see that come to fruition is
great.”
its location created a number
of challenges for the design and
construction of the high-rise tower.
damac had to work around a
coral base and a high water table.
this necessitated the inclusion of
a 2.6 metre raft foundation to
support the project.
Al Jawharah is the height
of sophistication. if you can
afford an apartment on the top
ten floors, you’ll be treated to a
Versace designed home interior,
and each one comes with a room
for your family’s chauffeur.
mcloughlin says that he is
optimistic.
“Without getting carried away,
i think the phrase is ‘cautious
optimism’. there’s a better feeling
today than there was the year
before, so watch this space.”
outstanding development of the year dAmAc ProPerties
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ConstruCtion MaChinery Middle east Magazine’s Brand of the year VolVo ConstruCtion EquipmEnt
Heavy equipment is an essential
part of the construction industry,
and often the unsung hero
of projects. the Construction
machinery, middle East, Brand
of the year was won by Volvo
Construction Equipment.
the award caps a remarkable
year for Volvo, which began
with it bringing the Volvo ocean
race to Abu Dhabi. it played a
crucial role in facilitating Famco’s
acquisition of saudi distributor
Al-rehab.
Deliverer of the night’s
welcoming industry speech, paul
Floyd, mD of Famco, explains:
“there’s been a partnership
since the mid-1990s when Volvo
construction equipment and
FAmCo joined forces. so to ask
what it means to us, it’s hugely
satisfying to have built our business
and the Volvo brand up over so
many years. it’s good that the
investments FAmCo has made in
the dealer network, are recognised
by the industry in this way.”
“We always try to be a partner
to our clients, we’re not really
interested in just moving the
metal. it’s really about supplying
the right equipment to the right
application, and ensuring that
the fleet operators are supported
throughout the life cycle of the
equipment. that’s a philosophy
that comes right through from the
manufacturer, from Volvo, through
the dealership, and hopefully the
end user reaps the benefits of that
philosophy.”
While it’s easy to be
fixated on what a
building looks like
from the outside, this
award recognises
those that make
sure the heart of the
building is always
beating.
Emirates trading
Agency beat off some
stiff competition to
win, but has proven
itself again and
again on a series
of contracts in the
uAE. EtA has been
an integral part
of the growth and
development of uAE
and is continuing
to contribute its
construction expertise
to major landmark
developments. EtA
is expanding to
other countries in
the mEnA region
and india, with two
billion dirhams worth
of projects in the
Kingdom of saudi
Arabia and qatar
including the King
Abdullah Financial
District, the Hilton
Hotel in riyadh,
the Downtown
Doha msheireb
Development.
AK Agarwal
(pictured centre),
senior Executive
Director at EtA,
accepted the mEp
Contractor of the Year
award: “Basically, it
feels good to have
somebody appreciate
what we’ve done. We
can proudly say that
we started from small
beginnings 34 years
back, and today
we’re the biggest over
here. We’ve done the
electro-mechanical
work for a number
properties, including
the Burj Khalifa, the
metro or most of the
airport. so we’re
proud of it.”
MeP ContraCtor of the year
EmirAtEs trADing AgEnCY
this award was collected on Khaled’s behalf
by laurent Haddad, a senior architect at rW
Armstrong.
the award recognised that Khaled has
demonstrated an in-depth knowledge of
construction techniques and superb knowledge
of the dark arts of strategic project planning
and cost programming. He also has a passion
for his work, an extraordinary attention
to detail and a commitment to quality. All
attributes essential in project delivery.
laurent described Khaled: “He’s a fantastic
guy, a calm guy. masdar is recognised around
the world as being a leader in sustainability,
and he is leader of the project, that’s why he’s
being recognised for this award. masdar is
now coming online, everything we’ve been
working towards is coming to an end and it’s
the right time for the recognition to come.”
Khaled has been described as the technical
Director of choice for government, commercial,
hospitality, residential and corporate clients, by
his company rW Armstrong. With more than
23 years of experience Khaled has overseen
the development of several projects with total
construction costs in excess of 9.5 billion
dirhams. specialising in world class projects,
he has been instrumental in the construction of
high rise residential towers and luxury hotels in
Egypt, libya, south Africa and the united Arab
Emirates. some of recent work includes First
shams, Abu Dhabi.
ProjeCt Manager of the year KHAlED ZAgHloul, rW Armstrong
If there is one place on the planet which has
extremely high standards of architecture, it is
the UAE. David Ardill (pictured centre) doesn’t
just construct pretty buildings though, he is
designing for the future.
David is the mastermind behind Siemen’s
headquarters at Masdar City. He designed the
building’s unique ‘box within a box’ envelope:
an inner highly-insulated, airtight facade
designed to reduce thermal conductivity. This
works in tandem with a lightweight aluminium
external shading system, to minimise solar
gain while maximising daylight and views
from the building.
He explained: “It’s very significant to us
because it’s the first project we’ve completed in
the Middle East, well, almost completed, it’s not
entirely finished and it’s a big step for us. To
come out here and win an award for our first
project, that’s a big deal for us.”
His focus now is clear: “Pushing the
sustainability front, that’s our focus, and to see
where we can take that with our new clients.”
Since joining the practice six years ago,
Ardill has been instrumental in the continued
success of the UK and Abu Dhabi-based
practice, and his remarkable work was
recently recognised by Sheppard Robson,
with his elevation to the status of Partner. He
explained how he won the award: “Very, very,
very long hours.”
Architect of the YeAr
DAVID ARDIll, SHEPPARD RobSon InTERnATIonAl
38 JANUARY 2013MID
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Recieving the award
for Siemens was Kay
Zwingenberger (left).
He explained why the
award is important
to Siemens: “It’s a
big honour for us
to receive this and
it’s a good result for
our new partners.
I feel honoured to
be amongst such
nominees in this
category, I feel very
proud that we won.
Siemens’ AED170m
headquarters in
Masdar City, Abu
Dhabi is nearing
completion and
well on its way to
achieving lEED
Platinum status.
Siemens Middle East
Headquarters was
designed from the
inside out. led by the
ambition to achieve
efficiency, rather than
a predetermined
aesthetic, the
resulting building is
both commercially
successful and
environmentally
sound: a truly
sustainable solution.”
Zwingenberger
commented: “We’re
looking forward to
moving into our new
building for which we
received the award
today.”
Zwingenberger
first joined Siemens
in 1992 and gained
valuable management
experience for the
company throughout
Europe, spearheading
the development of the
Siemens Healthcare
sector in Ukraine
and heading up the
Healthcare sector for
Siemens in Russia.
During his three-year
tenure in Russia,
Siemen’s volume
trebled, on the back
of several large-scale
contract wins. He
was subsequently
appointed CEo
for Central Asia
with responsibility
for Kazakhstan,
Kyrgyzstan, Tajikistan,
Uzbekistan and
Turkmenistan. based
in Kazakhstan, he
oversaw continuous
growth against difficult
economic conditions.
energY efficiencY Project of the YeAr
SIEMEnS
RW Armstrong won the Green
building Project of the Year for
its excellent work at the Masdar
Institute of Science & Technology,
the centrepiece of Masdar
City. Masdar is one of the most
sustainable and low-carbon
cities in the world. Designed and
constructed according to a strict
sustainability approach, the Masdar
Institute serves as an example for
many sustainable buildings and
rating systems in the region. The
Masdar Institute is the shape of
things of things to come.
Antonio Ceci, Sustainability
and Permitting Manager at the
company, explained: “It’s a great
honour to work with Masdar and
win this award for a great project.
It’s a fantastic achievement, it’s
great that all the hard work and
the hours and discipline it takes to
get a project like this completed is
recognised by someone, and that
we can deliver at least some of the
work.”
“This is for our continued
commitment to sustainability. We
can see the result of our work.
Many of the phases are being
handed over and we are happy
that the projects are ready – at least
some of the work – there’s a lot
more to go but we are completing
this phase at least.”
green Building Project of the YeAr RW ARMSTRonG
bigprojectMe.CoM
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ON SITE bigprojectMe.com
At first glance, the new Standard
Chartered headquarters in Dubai
isn’t the most attention grabbing
of buildings, but given that it is
adjacent to the world’s tallest building,
that was something it was always
going to struggle with. However, once
you get into the building, it becomes
immediately apparent that the 18-storey
building (ground, four podiums, thirteen
office floors and one mechanical floor) is
very different from most office buildings
in Dubai, if not the entire Middle East.
For starters, the building, which
was constructed and fitted out by
Brookfield Multiplex, has been designed
by Standard Chartered and architects
Arif & Binotak with the concept of ‘agile
working’ in mind.
Andrew Philips, project manager for
the site, explains that the interiors of the
building have been explicitly designed
to allow workers to be more efficient and
productive. They will also be kept in a
comfortable, sustainable and green-friendly
environment.
“Because there are so many people in
the bank who aren’t actually there (on a
day-to-day basis), there aren’t permanent
Big Project ME tours the new Standard Chartered headquarters in Dubai and gets a first-hand look at a building that is striving to become a benchmark for green design in the GCC
Project Name
Location
Status
Building type
Construction cost
Standard Chartered Towers
Dubai, UAE
Under construction
Commercial
$50 million
Here for Good
desks. If you walk around, you’ll see
that there are no drawers in the desk,
but everyone gets an individual locker.
It’s called agile working and a lot of big
companies in the UK are doing it at the
moment, it’s meant to promote a more
efficient workplace,” he says.
“I don’t know if it’s the first in Dubai,
but it’s definitely one of the first,” he
continues. “Because you’re saving on space
requirements, you’re saving on costs. It has
an impact on design and on everything.”
Saeed Al Aabar, a director at AESG,
whose firm works with Brookfield
Multiplex to achieve a LEED Platinum
rating for the project, adds that there had
been a number of sustainable measures
introduced into the building, especially
in regards to water conservation and
energy efficiency.
“One of the big drivers for Standard
Chartered, with a lot of people working
in the building, is that their costs are
driven by their staff. So there are a lot of
features in here that allow people to work
more efficiently, with less sick days,” says
Alabbar as he and Philips take Big Project
ME on a tour of the headquarters.
“For example, the flooring is green
labelled certified, the paints are low VOC,
so there’s a very low level of chemicals in
all of this. All of this relates to data that
shows that you get a lot less sick days
(from employees). So they’re able to
increase the company’s efficiencies.”
Furthermore, the building incorporates
a sophisticated set of systems to ensure
that energy wastage is kept to a minimum,
with even the glass used in the windows
chosen for its high performance and
ability to conserve wastage.
“The glass has got a UV value of 1.5,
which is very high end. There’s a lot of
energy efficiency from that. With the way
the glass is set out, 90% of the occupied
spaces receive daylight.
There are daylight sensors linked to all
the lights. So when it’s sunny, as it would
be 345 days of the year here, those lights
won’t turn on. If it’s an overcast day,
they’d just turn on the right amount, so
you haven’t got them on full and people
get whatever light is needed at their desk,”
Alabbar explains.
In addition, the building has installed
extremely efficient water fittings which
help reduce the water consumption in
the building to 48% below US baselines.
Alabbar adds that it was a conscious
decision to work to US specifications
as they are more stringent than UAE
baselines.
“On top of that, all of the water that
comes out of taps, because that water
is still fairly good quality water, it’s not
discharged as sewage. It gets treated
through a grey water treatment system,
and then all that water is used for
flushing,” he says.
41JANUARY 2013 MID
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ON SITE
“BecAUse YoU’Re sAviNg oN spAce ReqUiRemeNts, YoU’Re sAviNg oN costs. it hAs AN impAct oN desigN ANd oN eveRYthiNg”
n Division Construction + Development
n Construction value USD$50m
n Client Gulf Resources Development & Investment LLC
n Contract Type Design and Construct
n Consultants Shell & Core Architects, MEP and Structural Consultants: Arif & Bintoak
n Facade Concept KPF - New York
n Fit-out design for Standard Chartered floors Foreman Roberts
n Interior Design Carey Jones
n Description 50,296.83sqm built-up area (total construction area); 5,412sqm site area; 18 storeys (Levels 10-17 bank fitout by Brookfield Multiplex).
42 JANUARY 2013MID
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ON SITE bigprojectMe.com
One method incorporated into the
building was for cooling down fresh air
coming into the building, which served
the dual purpose of cooling down the
interiors, while ensuring fresh air for
people in the building, Alabbar said.
“As you can imagine, particularly
during the summer, you could be
introducing fresh air that’s 50°, and
that takes a lot of energy to cool down,
particularly if you want to provide a lot of
fresh air for the health and well being of
your occupants,” he explains.
“Actually, all the exhaust air that has to
be ventilated out of the building passes
over that fresh air, though they don’t
actually make contact. But through a sort
of heat exchanger, the fresh air that is
coming into the building is already pre-
cooled. So rather than introducing 50° air,
it can be reduced to 30°-35° before being
introduced into the building. And that’s
free cooling basically.”
While achieving LEED Platinum status
is the ultimate aim, the building has so far
been certified as LEED Gold, though both
Alabbar and Philip are certain that further
improvements will be made to achieved
their coveted rating. Brookfield Multiplex
has worked on a number of projects
around Dubai, but the building is the first
one they’ve had complete control over,
right from construction to fit out.
Despite completing similar projects in
Australia and the UK, working in Dubai
brought its own set of challenges.
“It’s actually not that hard if you do all
your planning up front. The devil is in the
details and that’s where AESG have been
brilliant. We built a lot of the structure at
night so there were no issues (with noise
and logistic complaints in the crowded
Burj Khalifa/Emaar Square area). They’ve
been planning this for a number of years
and they’ve allowed for expansion as well.
They knew they wanted breakout zones
on a certain percentage of every floor.
They’ve been designing it for a very long
time and making it all fit, so for us, it was
easy actually building it,” Phillips explains.
However, this commitment has
meant that there has been additional
responsibility for Philips and his team,
with the contractor having to install a BMS
system, as well as turnkey systems and all
the cabling and wiring, in the building.
In addition, both BM and AESG will be in
charge of testing and commissioning of
all the systems in the building, which is a
rigorous and time consuming process.
“There were requirements to make
sure that the building didn’t leak, and also
on the ductwork. There’s a fairly rigorous
process to inspecting all of that through
to the testing and commissioning phase,
to make sure there are no leakages,” says
Alabbar. “For the commissioning phase,
everything was checked to see if the
airflow was through the grills, is the airflow
where it’s supposed to be, if it’s not, then
you can tell that something has not been
programmed right or there’s a leakage in
the ducts or something like that.”
Phillips concludes: “That’s all
rigorously tested because that’s an area,
particularly in this part of the world,
where efficiencies are lost,” he points
out. “Because things were planned and
inspected so well throughout; once you
get to the testing phase, it becomes more
of a procedure. There are things that are
picked up and resolved, but luckily it’s all
just small very easy fixes.” n
“During the summer, you coulD be introDucing air that’s 50°, that takes a lot of energy to cool Down, particularly if you want to proviDe a lot of fresh air”
With the workforce on the project
reaching up to 750 construction labourers
at the peak of the project, project
manager Andrew Philips says that given
the rapid pace of development (the
project averaged a slab rate of five day
cycles), it was important to run the projects
according to the highest standards, in this
case Australian and UK, to ensure absolute
onsite safety.
“Everyone must be inducted before
they start, there’s no work without risk
assessments, tool box talks are mandatory
for all work on site and basically we
follow the UK and Australian rules. That
way, we’re way ahead of the standards
here,” he says.
44 JANUARY 2013MID
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SPECIAL FEATURE Finance bigprojectMe.com
Islamic financing may be in its infancy but it could possibly open up a wealth of projects in the GCC
Building on islamic
Finance
45JANUARY 2013 MID
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SPECIAL FEATRURE Finance
Damascus is reputedly the longest
inhabited city on Earth, with 4,000
years or so of continuous human
habitation. Yet even back then
someone had to pay for it.
Project finance is difficult and based
on future achievement, rather than a solid
asset base. Imagine definitely knowing
the winner of the first Meydan horse
race, but having the information before
the racecourse is built. You will almost
certainly profit, but not for a while.
Certain projects are more popular than
others, in finance terms. According to a
recent Financial Times article, project
loans to build power stations, wind
turbines and bridges are particularly
unattractive because of their size, tenor
and illiquidity. If a project stalls the
potential to become the owner of 90,000
propellers on a wind farm in the Shetlands
is less than appetising to a banker.
On the other hand, certain sites,
such as Battersea Power Station and
Centre Point in London, have remained
undeveloped for decades. It doesn’t
matter for two crucial reasons, one is that
central urban land, developed or not,
rises in value anyway. Secondly, as long
as banks have tenure, land is an asset,
whereas defaulting loans are a liability.
As Dubai will testify, projects stall on a
regular basis. The Palm Jebel Ali and the
World are both testaments to the ability of
the human race to miscalculate. Ironically
for Dubai, the World has become the
world’s biggest example of a stalled
project. But crucially, there is inherent
basic land value.
Recently, the fun-loving Swiss decided
that the idea of people who don’t own
money, giving it to people who can’t pay
it back, is no longer tenable as a system.
The result of this is Basel III (or the Third
Basel Accord). Although it makes sense
on a global scale the short-term effect is
that more projects will be competing for
fewer funds.
Essentially the accord seeks to
ensure that banks have a minimum
liquidity level and can’t go bust. It seeks
to implement a series of minimum
requirements to ensure the strength of
the banking system. Members of the
accord include Australia, Canada, China,
Hong Kong SAR, India, Japan, Mexico,
Saudi Arabia, Singapore, South Africa
and Switzerland.
Argentina, Brazil, the European
Union, Indonesia, Korea, Russia, Turkey
and the US – are also working towards
final versions as quickly as possible.
Stefan Ingves, chairman of the
Basel Committee and governor of the
Sveriges Riksbank, said: “While some
jurisdictions have not been able to meet
the planned start date, a large number
“SUcceSS will be defiNed iN the coRe mARketS thRoUgh the tRANSfoRmAtioN of iSlAmic bANkS So theY ARe Able to compete foR coNveNtioNAl cUStomeRS”
if iN difcLorem ipsum dolor sit amet, consectetur adipiscing elit
Tel: +966 3 802 4938Fax: +966 3 826 [email protected]
46 JANUARY 2013MID
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SPECIAL FEATURE Finance bigprojectMe.com
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will be ready to begin introducing the
new capital requirements as planned on
1 January 2013.”
Power follows money, which Dubai
has. So any realistic developer will
realise quickly that, within a short time,
Dubai will become a financial centre
and the Eurozone will become a desert.
Ironic really.
There is a saying in Europe that banks
will lend you an umbrella but take it
back when it starts to rain. Much of the
European banking system is based on
the assets that a bank can reclaim if the
company they are lending to gets in
trouble. One of the main reasons that
the Japanese economy did so well is
that Japanese banks took a longer view
on loans. It will now become harder
for banks to lend money to certain
projects and make large long-term
loans harder to hold on banks’ balance
sheets, according to several senior bank
executives in the US and Europe.
Long-term government-backed
infrastructures will continue to be based
on public private partnerships (PPP).
One Kuwait company built a power
station for the Egyptian Government.
No money changed hands, but the
government agreed to buy electricity at a
fixed price over a period of twenty years.
At the end of that period the engineering
company will hand over the installation
to the government. But finance needs to
be found for the more ethereal projects
that do not constitute infrastructure. Enter
Islamic Finance.
It has to be said that for a considerable
time this form of finance was a bit like
green initiatives in the Middle East,
worthy and developing, but not taken
seriously as a mainstream solution.
Now that has changed and Islamic
solutions are being considered much
earlier in the financing decision process.
“There is no Truly fully fledged islamic bank ThaT sTreTches across inTernaTional markeTs or even regional markeT”
47JANUARY 2013 MID
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SPECIAL FEATURE FINANCE
So why iSn’t more banking iSlamic?
It all comes down to profit really.
Essentially Islamic law forbids profit or risk
taking. On the face of it not a lot of room
to develop products essentially based on
those two principles. Man, however, is
never as ingenious as when circumventing
non-negotiable rules and there are certain
parts of the strictures which allow a
degree of latitude.
Paul Jarvis, Partner of Banking & Finance
for SR Denton law practice in Abu Dhabi
points out that a strategic use of mixed
financing between conventional and
Islamic methods could be used. He says,
that mixing ethical and commercial funding
has potential pitfalls and must be agreed
and scrutinised carefully for it to work.
Because Islam forbids simply lending
out money at interest (see riba), Islamic
rules on transactions (known as Fiqh al-
Muamalat) have been created to prevent
this perceived evil. The basic principle of
Islamic banking is based on risk-sharing
which is a component of trade rather
than risk-transfer which we see in the
conventional banking. Shari’ah expressly
forbids parties from entering a transaction
with uncertainty, also known as gharar.
Rice University Professor, Mahmoud Amin
El-Gamal gives a good example of how
to comply with the principle of gharar:
Prohibition of gharar pertains to a person
paying a fixed price for whatever a diver
may catch on his next dive. In this case,
he does not know what he is paying for.
On the other hand, paying a fixed price
to hire the diver for a fixed period of time
is permitted. Transactions can often avoid
gharar by being specific and defining
what the exchange is taking place.
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Islamic finance is expected to make up
30% of the total project finance market
in the Gulf Co-operation Council, or
GCC, countries by 2012, compared to
just over 12.5% in 2006, according to the
latest estimates.
Shariah-compliant assets reached
about $400 billion throughout the world
in 2009, according to Standard & Poor’s
Ratings Services, and the potential
market is $4 trillion.
Islamic banking has the same
purpose as conventional banking: to
make money for the banking institute by
lending out capital. But that is not the
sole purpose. Adherence to Islamic law
and ensuring fair play is also at the core
of Islamic banking.
As nearly a third of the available
finance is going to come from this
source, a group of experts has gathered
to decide what it actually constitutes.
Where does Islamic financing come
from? Largely from conventional banks.
A conventional financial institution or
bank opens an ‘Islamic window’ on its
premises, introduces an investment
product marketed as ‘Islamic’, such as a
fund, or sets up a private Islamic bank
or company. This is the subject of the
present discussion.
Some scholars believe that this is
not permissible, because conventional
financial institutions do not comply, in
the first place, with the sharia in terms of
their incorporation and statutes. If they
do not comply with Islamic law in their
basic charters, how can they claim to
comply with it in their funds, branches,
or windows?
Qatar has recently decreed that
Islamic finance can only come from
Islamic banks. One of the main
problems is the actual application of the
principles. In 2009 Sheikh Muhammad
Taqi Usmani, of the Accounting and
Auditing Organisation for Islamic
Finance Institutions (AAOIFI), a
Bahrain-based regulatory institution that
sets standards for the global industry,
said that 85% of Sukuk, or Islamic bonds,
were un-Islamic.
Consultancy Ernst & Young has just
released a report pointing to a future
explosion of banks offering Islamic
finance. “Success will be defined in the
core markets through the transformation
of Islamic banks so they are able
to compete with the much bigger,
conventional boys for mainstream
customers,” said Ashar Nazim, Islamic
financial services leader at Ernst & Young.
“There is no truly fully fledged Islamic
bank that stretches across international
markets or even regional markets,”
Nazim said. “It is a lopsided industry at
this point, only 13 Islamic banks have $1
billion or more in equity,” adding that
the difference between small and large
Islamic banks will widen.
At this point we must of course draw
attention to the spate of announcements
made by the Dubai authorities to the
future crowded urbanisation of the city.
It is almost certain the application of
Islamic finance to this development will
be crucial.
In theory, Islamic finance sounds like a
great idea. You create partnerships based
on mutual risk and reward, rather than the
European model of debt based transaction.
At the moment, we are in an
interesting transitional phase. We
have an explosion of local project
announcements combined with a sharp
decrease in traditional western funding
solutions. We have a strongly developing
funding solution which is developing,
and it is morally and socially more
acceptable than profit based solutions.
Soon the great order of projects can
be restored. And we can get back to the
old system where developers spend most
of their time reading Bentley brochures
and consultants can spend their time
actually buying Bentleys. n
48 JANUARY 2013MID
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Why real estate development companies fail
The challenges affecting the real estate
industry are well-known particularly
in light of the recent global economic
downturn. Real estate development
is no simple business. It is a complex and
highly demanding venture that involves
numerous and evolving challenges. In any
given project, a real estate developer could
be managing investments worth hundreds
of millions and even billions of Saudi
Riyals. The financial aspect alone already
raises to stratospheric heights the stakes
in many real estate projects. On the other
hand, real estate developers also carry the
burden of having to satisfy the very high
expectations of investors and the society
in general. Real estate developers do not
just build structures; they create properties
where people can live, work, play, relax.
Real estate development is an exciting
venture if you know what you are doing.
The concept of real estate development
is relatively new in the GCC. In fact, the
private sector has only been actively
involved in real estate development in the
region in the past two decades. The GCC
was certainly a late bloomer as far as real
estate is concerned: it was only in 1998 or
a bit earlier that we started to see a surge
in the number of real estate developers in
the UAE, Qatar, Kuwait and KSA. And by
real estate development, I don’t mean just
building homes, shops or offices; it is more
about that effective use of the three pillars
of success in real estate development:
finance, engineering and marketing.
During the past decade, we have
witnessed the rise and fall of big names in
the real estate business. There were huge
gains reaching billions of Riyals, but there
were also significant losses especially with
the decline in real estate activity following
the global crisis. To be sure, I assert that
the crisis was not the fundamental cause
of most failures. This is especially true
considering that there has always been a
considerable demand with little supply.
So why did big real estate companies
fail in Kuwait, UAE, Qatar and KSA? There
are reasons for these failures, which affect
developers regardless of the size of the
market or economic situation.
Loss of credibiLityThe success of a real estate developer is
built on credibility. A developer therefore
has to be more transparent with its internal
and external activities, particularly when
dealing with customers, strategic partners
and employees. Failure to maintain the
trust and confidence where the developer
operates surely lead to its ultimate decline.
Absence of visionReal estate development is a long-term
venture. Any project can take anywhere
between two to seven years to complete.
Sometimes, even more. The developer
should have a vision and not just a
set of objectives to be accomplished.
Unfortunately, in the Arab world many
developers lack the vision and most work
to maximise their profit in the short run.
Absence of product/project I believe many will agree with me on this
one. It certainly makes sense that without
a product or project, a company cannot
exist. Well, in many cases in the region, the
exact opposite has happened. Or at least
many companies tried to get away with
it. If there is no product, there should be
no development. Period. Unfortunately,
some Gulf developers have announced
Real estate development could really be the secret of a sustainable future for the construction industry in the region. Mohamad Rabih Itani, VP Marketing, Injaz Development Company looks at the challenges ahead
MohAMAd RAbih itANi
“pRoJect developMeNt Used to be A tRiAl ANd eRRoR exeRcise. developeRs skiRted the UsUAl pRocess thAt woUld hAve helped Avoid MistAkes ANd pooR coNstRUctioN”
billions of Riyals worth of projects in the
past ten years but I believe that only 10% of
these projects were ever delivered. There
is no reason for a real estate development
company to exist if it doesn’t have projects.
Failure to deliverEconomy is built on supply and demand.
If there is a need in the market, supply
should come. The Saudi real estate market
is based on demand, which currently
exceeds supply by up to ten times. In the
UAE, developers supplied the market with
real estate products that mainly targeted
foreigners. But what happens when supply
does not meet the financial capacity and
preferences of the demand? Developers
will fail. A developer is not required to
come out with extraordinary projects that
are hard to sell. It only needs to satisfy
the demands of the market. Even a single
bungled project can have devastating
effects, causing the closure of the company.
Copy and pasteThere is this impression that the Arab
world is a copier and not an innovator
of products or services. This may be
particularly true in the real estate sector.
A developer is someone who should
be able to take risks and work into
transforming the lifestyle of people,
creating neighborhoods that will be
relevant for many decades. A developer
must therefore figure out how a certain
city will evolve within the next 5, 10 or 15
years, and how real estate projects will
fit into this transformation. Where is this
happening in the Arab world? Except for
a couple of big developers in the GCC,
I see most of the developers as copiers.
Copying project will not sustain a real
estate developer. Innovation is a must.
over promisingA lot of real estate developers promise
to build projects they couldn’t execute.
This only places their company in an
embarrassing situation in their bid to score
short-term points. One important factor for
the success of a real estate developer is its
ability to deliver what it has promised. Over
promising is surely deadly.
not having the right people Even though this is true to all types of
businesses, I believe it is even more
pronounced in real estate development.
Not having people with the right expertise
and experience, and who share the
company’s vision, will only lead to the
company’s failure.
poor quality produCtsIn the GCC, project development used to
be a trial and error exercise. Developers
skirted the usual process that would have
helped avoid design mistakes and poor-
quality construction. With the boom, they
couldn’t wait. They just have to go full
speed. In a lot of these cases, we have seen
poor-quality projects, wrong designs, and
wrong projects. Surely, some companies
have disappeared from the market,
especially in Saudi Arabia, because
they were too quick to cash in on the
boom without bothering to build on the
fundamentals of real estate development.
absenCe oF soCial responsibilityDevelopment is about building lifestyles,
establishing communities, bringing
people together, creating neighborhoods.
This is not achieved with just bricks and
stones. A real estate developer needs
to communicate to people – not to an
inanimate business institution. These
are people who will buy and use their
properties for decades. These are the
people who will talk about you and refer
to you buyers. Since real estate companies
need to develop and build strong social
responsibility programmes.
The Arab market is a relatively small
market; as we say, everybody knows
everybody. This is why a good start is the
perfect start for any business to achieve
success and growth. But are real estate
developers ready to take the necessary steps
to avoid failure? I am hopeful that they have
learned their lesson well.
49JANUARY 2013 MID
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TENDERS
TOP TENDERS
BuDgET $4,000,000,000
Client Al-Zorah Development Compnay Ltd P.S.C (Ajman)
Region Northern Emirates
DesCRiption Construction of a tourist resort com-prising a five-star hotel consisting of (154) rooms, including a theme park and golf course, private suites and villas, in addition to four restaurants and a spa.
status New Tender
pRojeCt name: Bausher Multipurpose project
BuDgET $174,000,000
Client Public Authority for Social Insurance (Taminat) - Oman
Region Oman
DesCRiption Development of a multipurpose project comprising (11) mixed-use commercial, residential and administrative buildings, including associated facilities in the Wilayat of Bausher.
status Current Project
pRojeCt name:lower Fars reservoir DevelopMent project - phase 1
BuDgET $7,000,000,000
Client Kuwait Oil Company (KOC)
Region Kuwait
DesCRiption Development of Lower Fars Reservoir.
status New Tender
pRojeCt name: tourist re-sort project - al-Zorah DevelopMent (phase 1)
pRojeCt name: Xproton therapy center project - King FahaD MeDical city
BuDgET $74,000,000
Client Ministry of Health (Saudi Arabia)
Region Saudi Arabia
DesCRiption Construction of a proton therapy center at King Fahad Medical City. status Current Project
pRojeCt name: coMBineD-cycle power plant project - jiZan econoMic city
BuDgET $2,000,000,000
Client Saudi Arabian Oil Company (Saudi Aramco)
Region Saudi Arabia
DesCRiption Engineering, Procurement and Construction (EPC) contract to build an integrated gasification combined-cycle (IgCC) power plant with capacity of 2,400 MW in Jizan Economic City.
status New Tender
52 JANUARY 2013MID
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MIDDLE EAST TENDERS Provided by
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Saudi arabia
ToWerS ConSTruCTion ProjeCT-95
ProjeCT number MPP2723-SATerriTory Saudi ArabiaClienT name Rayadah Investment Company (Saudi Arabia)CiTy Riyadh 11564 PoSTal/ZiP Code 56850CounTry Saudi ArabiaPhone (+966-1) 205 9911Fax (+966-1) 205 9922email [email protected] www.raid.com.sadeSCriPTion Construction of (3 Nos.) towers, retail units and related service facilities with a total built-up area of 268,383m2.STaTuS New TenderremarkS This project will be located on King Fahd Road in Assahafa District of North Riyadh in Saudi Arabia. It will be adjacent to proposed Burj Rafal Tower and will cover a total site area of 30,000m2. Tender CaTegorieS Leisure & Entertainment, Prestige BuildingsTender ProduCTS High-rise Towers, Retail Developments
al bayT 57 mixed-uSe develoPmenT
ProjeCT number ZPR886-SATerriTory Saudi Arabia
ClienT name Al Bayt Development Company (Saudi Arabia)addreSS Khorais RoadCiTy Riyadh 92151 CounTry Saudi ArabiaPhone (+966-1) 212 2222Fax (+966-1) 212 3333email [email protected] www.al-bayt.netdeSCriPTion Development of Al Bayt 57 mixed-use scheme comprising (9 Nos.) 22-storey towers, including a branded 5-star hotel, (1,500 Nos.) two, three and four-bedroom apartments as well as penthouses, Grade A commercial office space and a Galleria retail mall covering 25,000m2.Period 2015 STaTuS New TenderremarkS This project will be located along King Saud Road, in close proximity to Al-Khobar’s picturesque waterfront promenade in Saudi Arabia and occupy a prime site area of 40,000m2 with a gross floor area of approximately 500,000m2. UAE- based Dewan Architects & Engineers has been awarded a contract to design this project.deSign ConSulTanT Dewan Architects & Engineers (Saudi Arabia)Tender CaTegorieS Construction & Contracting, Hotels, Leisure, Prestige BuildingsTender ProduCTS Commercial Buildings, High-rise Towers, Hotel Construction, Residential Buildings, Retail Developments
ProTon TheraPy CenTer ProjeCT - king Fahad mediCal CiTy
ProjeCT number ZPR824-SATerriTory Saudi ArabiaClient Name Ministry of Health (Saudi Arabia)addreSS Old Airport RoadCiTy Riyadh 11176 PoSTal/ZiP Code 21217CounTry Saudi ArabiaPhone (+966-1) 401 5292/ 401 2220/ 401 5555 Ext. 1277Fax (+966-1) 402 6944/402 9876email [email protected] www.moh.gov.sadeSCriPTion Construction of a proton therapy center at King Fahad Medical City.budgeT $74,000,000 Period 2014 STaTuS Current Project remarkS This project is in Riyadh. It will be the first proton therapy center in the Gulf region. Construction will commence later this year, with the proton therapy center along with the central services building scheduled for completion within (18) months to allow installation and commissioning of the equipment.main ConTraCTor Al Habtoor Leighton Group (Saudi Arabia)main ConTraCTor (2) Al Latifia Trading & Contracting Company (Saudi Arabia)Tender CaTegorieS Construction
& Contracting, Medical & HealthcareTender ProduCTS Hospital Construction
kuWaiT
WaFra SeeF develoPmenT ProjeCT
ProjeCT number OPR581-KTerriTory KuwaitClienT name Wafra Real Estate (Kuwait)addreSS Sharq - Wafra Real Estate Bldg., Ahmed Al Jaber StreetCiTy Safat 13137 PoSTal/ZiP Code 27635CounTry KuwaitPhone (+965) 2241 1273Fax (+965) 2243 5999WebSiTe www.wafra-kuwait.comdeSCriPTion Development of Wafra Seef scheme comprising a new food and entertainment destination offering patrons a gathering place where they can dine, meet and mingle, while enjoying the breathtaking views of the Arabian coastline.STaTuS New TenderremarkS This project will be located along the coastline of Al Mahboula Area, just south of Kuwait City and cover an area of 5,760m2. deSign ConSulTanT GenslerTender CaTegorieS Construction
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& ContractingTender ProducTs Construction & Addition Works, Hospitality Materials & Services Retail
QaTar
solar energy Power ProjecT
ProjecT number OPR574-QTerriTory QatarclienT name Qatar General Electricity & Water Corporation (Kahramaa)address Corniche Street, Number 61, Sheraton Roundabout, Dafna AreaciTy Doha PosTal/ZiP code 41counTry QatarPhone (+974) 4484 5484/ 4484 5555Fax (+974) 4484 5496email [email protected] www.km.com.qadescriPTion Engineering, procurement and construction (EPC) contract for the implementation of a solar energy power scheme with capacity of 200 MW.budgeT $30,000,000 Period 2020 sTaTus New Tender remarks This project will be implemented in two phases. Tender caTegories Water Works, Power & Alternative EnergyTender ProducTs Solar Energy
oman
bausher mulTi-PurPose ProjecT
ProjecT number OPR577-OTerriTory Oman
clienT name Public Authority for Social Insurance (Taminat) - OmanciTy Muscat 115 PosTal/ZiP code 310counTry OmanPhone (+968) 2412 3000Fax (+968) 2412 3686websiTe www.taminat.comdescriPTion Development of a multipurpose project comprising (11) mixed-use commercial, residential and administrative buildings, including associated facilities in the Wilayat of Bausher.budgeT $174,000,000 Period 2015 sTaTus Current Project remarks This project will cover an area of 37,000m2. The commercial buildings constitute 30% of the project. The residential buildings will provide (600) housing units with utilities like gardens, swimming pool, sports and health clubs, walkways and public services. Tender ProducTs Commercial Buildings, Community Development, Gardens/Parks Development & Maintenance, Residential Buildings
sohar aluminium rolling mill ProjecT
ProjecT number ZPR502-OTerriTory OmanclienT name Takamul Investment Company (Oman)address Bayt Muscat Bldg, Mezzanine Floor, Al GhubraciTy Muscat 130 PosTal/ZiP code 1951counTry OmanPhone (+968) 2452 9000Fax (+968) 2449 4986email [email protected] www.takamul.comdescriPTion Engineering,
Procurement and Construction (EPC) contract to build an aluminium rolling mill in Sohar with initial production capacity of 140,000 tonnes per annum.budgeT $400,000,000 Period 2014 sTaTus Current Project remarks Civil and building works are currently underway. The equipment has been purchased. Partial hand over of the project is scheduled for August 2013.main conTracTor Fata Group (Italy)civil engineering conTracTor Teejan Trading & Contracting Company L.L.C (Oman)Tender caTegories Industrial & Special ProjectsTender ProducTs Steel Mills
uae
TourisT resorT ProjecT - al-Zorah develoPmenT (Phase 1)
ProjecT number MPP792-UTerriTory Northern EmiratesclienT name Al-Zorah Development Compnay Ltd P.S.C (Ajman)address Building 1ciTy Ajman PosTal/ZiP code 8010counTry United Arab EmiratesPhone (+971-6) 703 0100Fax (+971-6) 740 7222email [email protected] www.alzorah.aedescriPTion Construction of a tourist resort comprising a five-star hotel consisting of (154) rooms, including a theme park and golf course, private suites and villas, in addition to four restaurants and a spa.budgeT $4,000,000,000 Period 2015
sTaTus New Tender remarks This project will be located across an area of over 100,000m2, along 290 metres of waterfront in Ajman. The theme park will be named Mangrove of the World and offer an interactive experience with a fascinating environment along with marine nature and activities. A Golf Course and Clubhouse with a landscaped frontage to the north side of mangrove forests, including apartments and villas; and visitors’ pavilion overlooking various attractions, including the mangrove forest are other key components. Client has invited eight UAE-based contractors to submit bids for the main construction contract on this scheme. design consulTanT Piero Lissoni (Italy) design consulTanT-2 NORR Group Consultants International Ltd. (Abu Dhabi) design consulTanT-3 Denniston International Architects & Planners Limited (Malaysia) design consulTanT-4 Bernard Khoury Architect (Lebanon) sPecialisT conTracTor(1) BRC (USA) Tender caTegories Hotels, Leisure & EntertainmentTender ProducTs Hotel Construction, Theme Parks Development
green carbon PlanT ProjecT - aluminium smelTer comPlex - Phase 2
ProjecT number ZPR521-UTerriTory Abu DhabiclienT name Emirates Aluminium Limited - EMAL (Abu Dhabi)ciTy Abu Dhabi PosTal/ZiP code 111023
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Country UAEPhone (+971-2) 509 2222Fax (+971-2) 562 7264email [email protected] http://www.emal.aeDesCriPtion Engineering, procurement and construction (EPC) contract to build a green carbon plant, as part of Phase II of the aluminium complex in Khalifa Port & Industrial Zone.buDget $80,000,000PerioD 15/12/2014 status Current Project remarks Local Target Engineering Construction Company has been awarded an estimated $3.6mn subcontract to install mechanical equipment for the green anode plant and butts crushing works on this scheme. Financial Consultant: Royal Bank of Scotland (UK) FEED Consultant: SNC-Lavalin International Inc. (Abu Dhabi) main ContraCtor Outotec sub-ContraCtor Target Engineering Construction Company L.L.C (Abu Dhabi) tenDer Categories Industrial & Special ProjectstenDer ProDuCts Aluminium Smelters/Plants
researCh & ProDuCtion FaCility ProjeCt - Dubai bioteChnology & researCh Park
ProjeCt number WPR029-Uterritory DubaiClient name Pharmax Pharmaceuticals FZ-LLC(Dubai)City Dubai Postal/ZiP CoDe 5374Country UAEPhone (+971-4) 450 4211 / (+971-50) 551 5404email [email protected] www.pharmax.aeDesCriPtion Construction of a
research and production facility for a pharmaceuticals company.buDget $11,000,000PerioD 2015 status New Tender remarks This project will be located in Dubai Technology & Research Park (Dubiotech) and cover an area of 8,360m2. On completion, the facility will become the regional headquarters of Pharmax Pharmaceuticals, which is a subsidiary of Ittihad Drug Store. Local emerging architect Tareq Qaddumi has been awarded the design and project management contract on the scheme. Facade engineering consultancy firm Koltay Facades has been sub-contracted by Tareq Qaddumi to lend its expertise to the project. Scope of work includes expert and independent technical advice on facade materials, facade systems and review of the modulation. Design work is currently underway. The project is expected to be completed over the next two years.Design Consultant Tareq Qaddumi Architectural & Engineering Consultants (Dubai) ProjeCt manager Tareq Qaddumi Architectural & Engineering Consultants (Dubai) FaCaDe Consulting engineer Koltay Facades (Dubai)tenDer Categories Industrial & Special ProjectsProDuCts Pharmaceutical
nmC sPeCialty hosPital ProjeCt - khaliFa City
ProjeCt number OPR582-Uterritory Abu DhabiClient name New Medical Centre Group - NMC (Abu
Dhabi)aDDress Madinat ZayedCity Abu Dhabi Postal/ZiP CoDe 6222Country UAEPhone (+971-2) 633 2255Fax (+971-2) 633 2256 / 631 7303email [email protected] www.nmcgroup.netDesCriPtion Construction of New Medical Centre (NMC) Specialty Hospital comprising basement and ground floors, as well as three upper floors, capable of accommodating (250) beds, featuring (23) specialties.buDget $200,000,000 PerioD 2016 status Current Project remarks This project will be located in the new Khalifa City area in Abu Dhabi and cover a total built-up area of around 75,000m2. The new hospital will cater to the growing population in Khalifa City, Al Raha, Mussafah, Mohammed Bin Zayed City, Masdar City, Abu Dhabi International Airport, Shahama and Yas Island. The first phase is due to be opened by end of 2014 and will begin with an umbrella of specialised medical care encompassing emergency services, intensive care, paediatrics, cardiology, ophthalmology, orthopaedics and urology. A ground-breaking ceremony was held on December 12, 2012 to mark the beginning of construction work. Local Society Technology House (STH) Consultant is acting as the consultant. STH will provide design and supervision services, including architecture, engineering, interior design and medical services.main Consultant Society Technology House Consultant (Abu Dhabi)
main ContraCtor Larsen & Toubro Ltd. (Abu Dhabi)tenDer Categories Construction & Contracting, Medical & HealthcaretenDer ProDuCts Hospital
jorDan
mixeD-use toWer ProjeCt-6
ProjeCt number WPR030-Jterritory JordanClient name Abdali Investment & Development Company - ADIC (Jordan)City Amman 11190 Postal/ZiP CoDe 925309Country JordanPhone (+962-6) 468 0084Fax (+962-6) 468 0087email [email protected] http://www.abdali.joDesCriPtion Construction of 36-storey mixed-use tower comprising a five-star hotel, an eight-level podium containing high-end retail units and office space.buDget $200,000,000 PerioD 2015 status Current Project remarks Civil works are expected to commence in the first half of 2013. The project is expected to be completed by end of 2015, with the hotel due to open in 2016. US-based design agency Perkins & Will has designed the tower.Design Consultant Perkins & Will (USA)main ContraCtor Dubai Contracting Company L.L.C. (Dubai)tenDer Categories Hotels, Construction & ContractingtenDer ProDuCts Commercial Buildings, Construction
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MENA intersec 2013dubai world trade centre, dubai, united arab emirates15-17 January
With around 1,000 international exhibitors expected, the 15th edition of intersec is set to build on its reputation as the most significant trading platform and networking event for security and safety professionals in the Middle east.intersec 2013 will be held again under the patronage of HH sheikh Mansoor bin Mohammed bin rashid al Maktoum. this underlines the ongoing support of the uae authorities for the region’s foremost security and safety event. the event also includes a special conference looking at fire & safety.
OffsHOre Middle east 2013Qatar national convention centre, doha, Qatar21-23 January
Offshore Middle east, the region’s premier event dedicated to the offshore exploration and production industries of the Gulf region, returns to Qatar. Offshore Middle east 2013, for the first time, include a Gas industry Operations track. the 4th annual Offshore Middle east will include sessions relevant to all aspects of natural gas and gas liquids as part of this technical track. the Gas industry Operations conference track will focus on developments, issues, and technologies that revolve around the offshore production of natural gas in the Gulf.
INtErNAtIoNAl
haPPeninG this month
naHB internatiOnal Builders’ sHOW las veGas convention center, las veGas, usa 22-24 January
naHB’s international Builders’ show is the largest annual light construction show in the world—over miles and miles of the latest and most advanced building products and services ever assembled. iBs attracts more than 50,000 attendees from more than 100 countries. the event is promoted as featuring the industry’s most important global manufacturers and suppliers and showcasing the latest building products and technologies.
OMan cOnstructiOn Grand hyatt muscat, oman27-30 January
developed in co–operation with the Ministry of Housing and officially supported by Omran and the Oman chamber of commerce and industry, Oman construction summit will provide an opportunity to discuss about upcoming mega projects in the sultanate and its opportunities. apex Medical Group, who are overseeing the development of the $1bn ‘international Medical city’ lead the salalah projects focus day.
cOntractWOrlddeutsch messe, hannover, Germany 12-15 January
contract world expo offers new perspectives to the participating companies for an improved communication with architects and interior designers. several companies used this forum at contract world and reported about excellent and interesting contacts. it is a necessity for everybody who will operate profitable in the contract furnishing sector. Professionals related to the field of architecture, interior design, buyers and specifiers in construction.
Co-located with: Organised by:Partner Events:
Doing Global Business a Power of GoodThe premier international showcase for the power, lighting, nuclear and renewable sectors.
Be a part of the world’s leading energy event. Meet over 1000 suppliers from 56 countries and discover the new technologies shaping the future of the energy industry.
17-19 February 2013Dubai International Convention & Exhibition CentreUnited Arab EmiratesUnder the patronage of H. H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Dubai Deputy Ruler
Register today for FREE fast-track entry at
www.middleeastelectricity.com
58 JANUARY 2013MID
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GAVIN DAVIDS
Gavin Davids says that while it is great that Dubai is getting back on track, the initial focus should be on completing the stalled projects that still dot the city’s landscape
Finish what we’ve started
With 2012 noW behind us, perhaps it is
time for the construction industry to take
stock of the year just past and chart out a
course for the year ahead.
We’ve seen a lot of changes take place
in the construction industry over the last
12 months. nowhere has it been more
evident than in Dubai.
over the last six months of the year,
the mega-projects have well and truly
returned to the emirate, with the likes of
Mohammed Bin Rashid City, the Jebel Ali
Five theme Park project and the Business
Bay Canal extension all announced one
after another.
Furthermore, there have been signs
from both investors and developers that
confidence is returning to the Dubai
market, with the likes of nakheel and
Emaar announcing profit gains and rapid
sales for the year.
however pleasing as this news is, what
does concern me is whether the hype and
excitement is obscuring the fact that there
are still dozens of uncompleted projects
left languishing in areas such as Business
Bay and Dubailand. Shouldn’t the focus
be on those projects instead of setting up
new ones?
i don’t think i’m alone with this opinion
either, as the majority of construction
people i’ve spoken to have said that Dubai
really needs to complete its stalled projects.
how else are investors going to be
reassured that Dubai and its construction
industry are well and truly back?
Perhaps there should be greater
government emphasis on pushing
through regulation or assistance that is
geared towards assisting investors and
developers, allowing for the completion
of projects that have been lying dormant
for years.
in my opinion it simply doesn’t make
sense to start the construction of these
new mega-projects at this point of time,
especially when you’ve got so much left
to do. it is a bit like constructing a new
annex to a house when the roof isn’t yet
complete.
here’s wishing you all a very happy
and prosperous 2013! n
Intercontinental & Crown Plaza Hotel, Festival City, Dubai
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