big project me september 2013
DESCRIPTION
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
090SEPTEMBER 2013
GCC Quantity Surveying comes of age
MAKING AN EARLY START
ALSO INSIDE HOSPITALITY HERE TO STAYDUBAI’S NEW MARVEL IN PROFILE: ALAN ROBERTSONCHINA IN AFRICA
C
M
Y
CM
MY
CY
CMY
K
AD234x290_BigProject_HR.pdf 1 6/25/2013 6:31:19 PM
3SEPTEMBER 2013 MID
DLE
EA
ST
CONTENTS
MID
DLE
EA
STM
SEPTEMBER 2013
PAGE 32Hospitality is the third
largest project sector in the GCC and growth is
accelerating.
07 The Big picTure
iNTErNaTiONal CONTraCTOrS iN qaTar warNEd
contractors warned of pitfalls in the Qatari contractors market
14 News aNalysis
payiNg ThE priCE
how prevalent is bribery and corruption in the Middle east?
18 iN profile
rEadiNg ThE paTTErN
Jll’s alan robertson on the resurging Dubai real estate market
24 siTe visiT
ThE MET rEbOrN
Big project Me visits the habtoor palace complex construction site
32 MaiN feaTure
hOSpiTaliTy MaTTErS
how hospitality is going to shake up regional construction
40 siTe visiT
ridE Of a lifETiME
Big project Me goes on an adventure with iMg
44 QuaNTiTy surveyors
ChaNgiNg pErCEpTiONS
examining the changing role of Middle eastern quantity surveyors
54 MarkeT aNalysis
whaT arE ThE ChiNESE dOiNg iN afriCa?
examining why the booming east african construction market is
attracting chinese contractors
60 special feaTures
MadE TO MEaSurE
Big project Me finds out how fM is adapting to a new market
puTTiNg ON a faCadE
Just how much of an impact can a building façade have?
70 TeNDers
TOp TENdErS
listing the top tenders in the Middle east region
82 coNsTrucTive criTicisM
a wOrld Of advENTurE awaiTS
gavin Davids says iMg’s theme park is just the beginning
C
M
Y
CM
MY
CY
CMY
K
AD234x290_BigProject_HR.pdf 1 6/25/2013 6:31:19 PM
4 SEPTEMBER 2013MID
DLE
EA
ST
EDITOR’s COMMENT bigprojectMe.COM
Stephen whiteGroup Editor
There’s a lot riding on Dubai’s bid to win the right to host the World Expo in 2020, and I don’t mean the seven members of Dubai Riders, the city’s oldest motorcycle club, who are biking across Europe as I type. Personally I wouldn’t choose to ride a Honda from Athens to Hamburg to enhance a bid celebrating a greener more connected future for the Gulf’s hub metropolis. I will presume the bikes are being recycled into a compost silo.
Coming out of summer, there’s a real feeling in the industry that should Dubai beat Izmir, Sao Paulo and Yekaterinburg then the floodgates will open for a devopment boom, not seen since, well, the last one. Certainly there are a lot of people willing to tell me they’ve heard non-too-quiet whispers that the momentum within the judging circle is with the city. The New York Times covered the build-up to the decision last month and described Dubai as the “frontrunner in the race”. Considering the competition contains one city that has already seen rioting relating to spending on the World Cup and two others which are embroiled in “political tensions” – saying Dubai is the outstanding candidate is like having a Harlem Globetrotter apply for a job fixing light bulbs.
Dubai, which has frequently drawn comparisons with Las Vegas, maybe banking on itself but it is playing a high stakes game. The expected 25 million visitors, 270,000 jobs and related projects are a tantilising prospect – but the city of New Orleans went bankrupt hosting the event and Shanghai allegedly spent $50 billion on its expo, so economic viability should at least be considered. However I would like to see what Dubai would come up with in terms of its own Eiffel Tower. Although by 2020 we’ll already have one of those in Falcon City, won’t we?
World Expo go?
MID
DLE
EA
STM
Publisher Dominic De SouSa
GrOuP COO naDeem HooD
ManaGinG DireCtOr RicHaRD JuDD eDiToRiaL
GrOuP eDitOr STepHen [email protected] +971 55 795 8740
DePuty eDitOr GaVin [email protected] +971 4 375 5480
features eDitOr JonaTHon SaViLL
maRKeTinG & aDVeRTiSinG
PublishinG DireCtOr RaZ [email protected] +971 4 375 5483
COMMerCial DireCtOr micHaeL [email protected] +971 4 375 5497
sales DireCtOr caRLo [email protected] +971 4 375 5495
sales ManaGer caRoL D’[email protected] +971 4 375 5496
MarKetinG ManaGer caRoLe [email protected] +971 4 375 5498
DeSiGn
seniOr GraPhiC DesiGner ReBecca [email protected] +971 4 375 5713
JuniOr GraPhiC DesiGner peRciVaL manaLaYSaY
ciRcuLaTion & pRoDucTion
CirCulatiOn anD DistributiOn ManaGerRocHeLLe aLmeiDa [email protected] +971 4 368 1670
Database anD CirCulatiOn ManaGerRaJeeSH [email protected] +971 4 440 9147
PrODuCtiOn ManaGer JameS p [email protected] +971 4 440 9146
DiGiTaL
www.BiGpRoJecTme.com
DiGital serviCes ManaGer TRiSTan TRoY maaGma
Web DevelOPers
JoeL aZcunaJanice FuLGencio
+971 4 440 9100
puBLiSHeD BY
Registered at impZpo Box 13700Dubai, uae
Tel: +971 4 440 9100Fax: +971 4 447 2409
pRinTeD BY
printwell printing press LLc
© 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.
The Formwork Experts.
Pathbreaking in Formwork Solutions
Infrastructure | Housing | Energy | High-Rise | CivilSupporting you to build more e�ciently for every concrete project.
Consulting & On-site ServicesFrom project development to project close-out
Systems & ComponentsWall, floor, shoring and climbing solutions with European safety standards
www.doka-me.com
Conversion to cold storage, Alsafi Danone, Al Kharj, KSA
Planning ASG Contracting RiyadhBuild 2012Application - Roof 3000 m2, FOAMGLAS® READY BOARD T4+, 70 mm thick and T4+ slabs, 30 mm thickApplication - Wall 2000 m2, FOAMGLAS® T4+ slabs, 70 mm thickFinish UV resistant bituminous layer waterproofing
Roof system1 Existing PU-panel, 50 mm2 FOAMGLAS® T4+ filler,
30 mm, in corrugation glued with PC® 11 adhesive
3 FOAMGLAS® READY BOARD, 70 mm, glued with PC® 11 adhesive and mechanical fixation
4 Two layers of bituminous waterproofing membrane; top layer UV-resistant
5 Anchor F fixed into existing PU-Panel
Upgrade for a lifetime with durable and fire safe FOAMGLAS® insulation material.Web: www.foamglas.ae Email: [email protected] Dubai office Tel: +9714 434 7140 Doha office Tel: +974 465 5360
FOAMGLAS® Insulation
The Alsafi farm in al Kharj KSA is the largest integrated dairy farm worldwide with Guinness World Book of Records entry 1998. The farm is fully integrated from the growing of forage to the final distribution of milk and dairy products and includes factory and storage facilities. Due to the adjustment of the daily need the upgrading of a storage to a cold storage needed to be done. The client decided to follow a proposal to upgrade the building envelope on the roof and the wall with FOAMGLAS® systems which are FM approved. The existing PU-panels on the hall were the base for the application of the FOAMGLAS® on the roof. The corrugation filler and the top layer are executed with FOAMGLAS® cellular glass insulation. A double layer bitumen membrane is the waterproofing and final finish of the roof. Final performance testing of the client showed excellent performance to the full satisfaction of Alsafi Danone.
Roof Upgrade to High ThermalPerformance
ASTM E84, E136
ThE
BEST
FACA
DE FoR high RiSE BuilDingS
FIRE SAFE
1
2
3
4
7SEPTEMBER 2013 MID
DLE
EA
ST
THE BIGGEST piCTurE
BIG PRojEcT ME TalkS To jll’S alan RoBERTSon aBouT duBaI’S REal ESTaTE REcovERy – PaGE 18
urBacoN’s coNTracT DirecTor highlighTs The MoDificaTioN MaDe To iNTerNaTioNal coNTracTs iN QaTar aND The raMificaTioNs of This for exTerNal coNTracTors NoT waTchiNg where They sTep iN The MarkeT
CONTRACTING HINGES ON its
contracts, naturally, and in most
countries around the world these
are standardised international
forms of contract like FIDIC, but
Qatar tends to be a different story.
“One of the main issues is that
the employers over here tend to
use their own form of contract, so
they take a FIDIC and amend with
clauses that make it a more onerous
contract for the contractor,” explains
Alexander Milne, contracts director
at UrbaCon Trading & Contracting
(UCC). “Any contracts department
must make sure to identify the
risks in each of the contracts
and address those risks either by
qualification or by pricing.”
An early identification of these
risks is therefore a key step as
contractors look to safeguard
themselves from otherwise
unnecessary arbitrations at a later
date down the project timeline.
“That’s one of the issues that
make it difficult out here – if
there is a major dispute you can
obviously go to arbitration,” says
Milne. “But that’s certainly not a
route that I would recommend
if you want to keep the client
on-side. You want to keep a
good relationship. It’s all about
relationships, and about nipping
things in the bud before they
become a major problem. A
contract’s a contract, but it’s how
the personalities interpret it.”
UCC, for its part, has never been
involved in arbitration, and this can
be put down to both its attention
to its contractual obligations and
its local harmonisation. Moutaz
Khayyat, CEO of UCC, comments
that accomodating client needs
and establishing understanding
between stakeholders reduces
chance of any major legal action.
“You do not want to head
towards arbitrations as a
contractor or a client, because it
destroys the relationship between
the two parties, and in terms of
trust that makes it very expensive.”
UCC managing director Ramez
Khayyat adds: “Contracting is
about trust between client and
contractor, and if the client
shares the risk then it is so much
the better – it makes for a much
happier project.”
Qatar has seen relatively little
arbitration, with the exception of
works on NDIA, but as FIFA World
Cup 2022 projects begin many
new contracts will see ink on
paper, and then the system truly
be tested.
“Arbitration is relatively new
in Doha, but there have been one
or two test cases,” says Milne.
“Looking at those I think it will go
much like Dubai, which should
give confidence to contractors.”
$200 billion To be invested in construction projects by 2022
$140 billion amount Qatar will invest into transportation infrastructure $20 billionamount to be invested into tourism infrastructure
big project, big numbers
Conversion to cold storage, Alsafi Danone, Al Kharj, KSA
Planning ASG Contracting RiyadhBuild 2012Application - Roof 3000 m2, FOAMGLAS® READY BOARD T4+, 70 mm thick and T4+ slabs, 30 mm thickApplication - Wall 2000 m2, FOAMGLAS® T4+ slabs, 70 mm thickFinish UV resistant bituminous layer waterproofing
Roof system1 Existing PU-panel, 50 mm2 FOAMGLAS® T4+ filler,
30 mm, in corrugation glued with PC® 11 adhesive
3 FOAMGLAS® READY BOARD, 70 mm, glued with PC® 11 adhesive and mechanical fixation
4 Two layers of bituminous waterproofing membrane; top layer UV-resistant
5 Anchor F fixed into existing PU-Panel
Upgrade for a lifetime with durable and fire safe FOAMGLAS® insulation material.Web: www.foamglas.ae Email: [email protected] Dubai office Tel: +9714 434 7140 Doha office Tel: +974 465 5360
FOAMGLAS® Insulation
The Alsafi farm in al Kharj KSA is the largest integrated dairy farm worldwide with Guinness World Book of Records entry 1998. The farm is fully integrated from the growing of forage to the final distribution of milk and dairy products and includes factory and storage facilities. Due to the adjustment of the daily need the upgrading of a storage to a cold storage needed to be done. The client decided to follow a proposal to upgrade the building envelope on the roof and the wall with FOAMGLAS® systems which are FM approved. The existing PU-panels on the hall were the base for the application of the FOAMGLAS® on the roof. The corrugation filler and the top layer are executed with FOAMGLAS® cellular glass insulation. A double layer bitumen membrane is the waterproofing and final finish of the roof. Final performance testing of the client showed excellent performance to the full satisfaction of Alsafi Danone.
Roof Upgrade to High ThermalPerformance
ASTM E84, E136
ThE
BEST
FACA
DE FoR high RiSE BuilDingS
FIRE SAFE
1
2
3
4
InTERnaTIonal conTRacToRS In QaTaR wARnEd ABouT PiTfAllS
8 SEPTEMBER 2013MID
DLE
EA
ST
THE BIG PICTURE bigprojectMe.Com
empower to build first green plant in region
Plant has been designed to meet additional cooling requirements of buildings in Business Bay
Empower, the largest district cooling provider in the Middle East, has awarded a $42 million contract to the uaE’s Transgulf for the construction of the first district cooling plant in the region built in line with green building principles.
The contract covers the construction of one building which will comprise district cooling infrastructure such as pumps, chillers, water tanks, cooling towers and office space. The plant will be built in two phases based on capacity distribution, with the majority of cooling load being available in phase one.
The district cooling plant, which is Empower’s second in business bay is expected to be complete by mid-2014 and will have a full capacity of 45,000 refrigeration Tonnes (rT).
The plant has been designed to meet the additional cooling requirements of the buildings in business bay. it will also be the first district cooling plant in the region to be built in line with green building principles, and to follow the guidelines of Treated Sewage Effluent (TSE) and Thermal Energy Storage (TES).
green buildings adopt measures which ensure the building is sustainable and energy efficient. These measures include reducing fresh water usage and carbon dioxide emissions, using more environmentally-friendly construction materials and also integrating energy-efficient lighting.
oMaN To awarD $65BN iN proJecTs over NexT four years
Projects to be awarded double the combined value of projects awarded over last five years
BIG PRojEcT ME HIGHlIGHTS HoSPITalITy’S IMPacT on conSTRucTIon In THE REGIon – PaGE 32
$65
OMAN HAS ANNOUNCED that it will award as much as $65
billion worth of projects between 2013 and 2017, which is double
the combined value of projects awarded over the last five years.
Among the projects at the forefront of Oman’s aggressive
expansion programme are BP’s $15 billion Khazzan tight
gas project, the development of a $10 billion refinery and
petrochemical complex at Duqm and a nationwide railway
construction project.
Some of the largest projects expected to be completed this year
include the $560 million Sohar Steel Complex Expansion (Phase
3) and the $480 million Musandam Oil & Gas Processing Plant.
Capturing a bigger share of Oman’s projects market will be
among the highlights of the forthcoming Oman Projects Forum
2013, which will address the latest project developments,
opportunities as well as in-country value initiatives across the
sultanate’s energy and non-energy related infrastructure market.
hlg seeks $272 MillioN iN coMpeNsaTioN froM QaTari sheikh
contractor says al Faisal Holding owes hundreds of millions in late payments for doha city centre hotel project
AL HABTOOR LEIGHTON, the Dubai
arm of the Australian contractor, is seeking
more than $272 million in compensation
from a prominent member of the Qatari
royal family for late payments on a hotel
project in Doha.
According to a Reuters report, HLG has
launched a series of suits against Sheikh
Faisal Bin Qassim Al Thani’s Al Faisal
Holding in relation to the Doha City Centre
Hotel development. Khalaf Habtoor,
chairman of the Al Habtoor Group and part
owner of HLG, has said that it planned to
initiate legal action internationally against
the Qatari company. However, Al Faisal has
countered HLG’s suits with accusations
of mismanagement and a failure to take
responsibility for several delays.
A statement by the Qatari company
said that these delays have affected the
construction of several hotel towers, which
were scheduled to be completed in 2007.
“The company wants more than a $272
million dirhams in compensation from Al
Faisal,” Habtoor told Reuters.
He said the suits were in response to Al
Faisal Holding cashing in a $100 million
performance bond which HLG had put up
as a guarantee against work on Marriott,
Renaissance and Shangri-La properties.
Billion
VAluE of PRojEcTS oMAn will AwARd
9SEPTEMBER 2013 MID
DLE
EA
ST
THE BIG PICTURE
THE SPACE FRAME at IMG Worlds of Adventure (IMGWOA), a
themed entertainment facility within the City of Arabia project,
has been erected, the developers behind the project have
announced.
Owned by the Ilyas and Mustafa Galadari Group, the IMG
Worlds of Adventure is a multi-faceted themed entertainment
facility comprising of four zones including; MARVEL, Cartoon
Network, Lost Valley and IMG Entertainment Zone.
The park will be in excess of 1.5 million square feet overall in
its first stage and will be the largest temperature controlled indoor
themed entertainment destination in the world.
“With the structural columns in place, we have entered a new
phase of development. IMG Worlds of Adventure is one of the
most anticipated developments in the region offering a number of
world firsts,” an official from the Ilyas and Mustafa Galadari Group
said in a statement.
space fraMe for iMg worlDs of aDveNTure erecTeD
BIG PRojEcT ME FIndS ouT wHaT nEw PowERHouSE cHIna IS uP To In EaSTERn aFRIca – PaGE 50
tata steel to manufacture 60,000 tonnes of steel for Holy cities railway
new railway will carry millions of pilgrims across 444km of desert
TaTa Steel has won an order to manufacture 60,000 tonnes of high-quality rails for a new high-speed line linking the Saudi arabian cities of Makkah and Madinah.
The new railway will allow millions of pilgrims to cross the 444km between the two holy cities at speeds of 320kmph, traversing desert and withstanding temperatures ranging from freezing to 50°C, as well as sandstorms, flash flooding and shifting dunes.
The steel for the project will be made in the steel giant’s Scunthorpe plant, before being rolled into rail in lengths of 25 metres both at the uK plant and TaTa’s hayange facility in Northern france.
work on producing the rail will start at the end of the year and will continue throughout 2014.
rMJM Merges europeaN operaTioNs iN MiDeasT BusiNess
RMjM International will manage offices in uk, abu dhabi, Bahrain, Saudi arabia and Turkey as architectural and planning company promises fresh approach
RMJM, THE INTERNATIONAL
has merged its European
operations into its Middle
Eastern business to form
an enlarged multi-regional
company that will be
headquartered in Dubai.
Known as RMJM
International, the firm will
manage offices in London and
Glasgow in the UK, as well as
offices in Abu Dhabi, Bahrain,
Saudi Arabia and Turkey.
Harry Downie will lead
RMJM International as CEO,
while Boran Agoston will be the
design principal.
“I am particularly proud
to announce this merger”
commented Peter Morrison,
RMJM Group CEO. “Our
Middle East business has been
a beacon of light within the
RMJM Group throughout a dark
and difficult global recession.”
“The strength of the RMJM
brand in the Middle East is
testament to the extraordinary
strength of character
encapsulated within our
regional team and serves as a
constant reminder of why we
have been able to maintain a
constant presence and sustain
a successful business here for
more than 40 years.,” he added.
Commenting specifically
on the design capabilities of
RMJM’s European team, Boran
Agoston, design principal of
RMJM International said that
RMJM’s European team was
very experienced and had a
range of skills and talents that
would complement existing
Middle East projects.
“This merger significantly
expands the range of design
capabilities RMJM can offer to
its long standing Middle East
clients and will also open up
new market sectors for us.”
“At the same time our
Middle East design team will
be able to offer a new and
fresh design approach to our
European clients,” Agoston
added in the statement.
city of arabia-based theme park enters new phase of development, Ilyas and Mustafa Galadari Group spokesperson says
Million SqfT
SizE of iMG woRldS of AdVEnTuRE
10 SEPTEMBER 2013MID
DLE
EA
ST
THE BIG PICTURE bigprojectMe.Com
al futtaim engineering wins multi-million dollar HVac contract for etiHad rail
MEP division awarded contract by Italy’s Saipem, to provide Hvac works for depots, track and line side alignment facilities
al futtaim Engineering has announced that it has been awarded the contract to provide hvaC works for the Etihad rail project. The uaE based company’s MEp division was awarded the contract by Saipem, the main contractor for the multi-billion dollar project. The multi-million dollar contract will see the al futtaim group company provide hvaC works for depots, track and line side alignment facilities at Mirfah in abu dhabi.
“we are extremely honored to be awarded this prestigious contract,” said Murali S, acting managing
director of al-futtaim Engineering. “Once complete the rail project is expected to significantly boost the economy and we are proud to participate in the development of the country. The Etihad rail contract underlines al-futtaim Engineering’s expertise in major infrastructure projects after having previously successfully delivered the dubai Metro project and presently executing the dubai Tram project.”
Etihad rail’s $10.89 billion, 1,200km route network will connect urban and remote communities throughout the country.
DUBAI HOLDING, THE main promoter of
SmartCity Kochi, has received permission
to begin construction on the first building
on the project, from the single window
clearance board, it has been announced.
Baju George, managing director of
SmartCity Kochi, told Gulf News that
construction work would start at the end
of August, with the tendering of piling
works set to be completed first. He added
that land development activities had
already started. Different activities have
been taking place on site from July, prior
to the construction of the first IT building,
George said.
“We expect piling to start this month
and the first building to be given out for
fit-out by December 2014. The fit-out is
expected to take three months,” he added.
The agreement for SmartCity Kochi was
signed in 2007 when the new government
took charge but the land was registered
in February 2011, a Gulf News newspaper
report said. The total area of the project is
246 acres.
Abdul Latif Al Mulla, CEO of
SmartCity Dubai and the chief
business development officer of Dubai
Holding, said that all major regulatory
requirements had been obtained.
DuBai holDiNg’s sMarTciTy kochi receives perMissioN To BegiN coNsTrucTioN
construction set to start at the end of august, managing director says
Makkah’s eMployMeNT crisis
although more than $30 billion has been invested into projects in the Holy city through the Makkah development Plan, young Saudi arabians are failing to make the most of the opportunities on offer
dEcEMBER
TARGET dATE foR SMARTciTy kochi fiTouT
2014
joBS cREATEd By MAkkAh TouRiST-RElATEd PRojEcTS
foREiGn woRkERS
100,000 SAudiS SEEkinG woRk in
MAkkAh
20%
MAlE joBSEEkERS
80%
fEMAlE joBSEEkERS
PERcEnTAGES of SAudi joBSEEkERS:
BA dEGREE VS SEcondARy cERTificATES
SAudi nATionAlS
30% BAchEloR dEGREES
70% SEcondARy oR inTERMEdiATE cERTificATES
Proven. Project Control Software.Modelogix and Proliance were designed and built for capital construction owners and developers. No other
software solution offers complete portfolio and program management throughout the building lifecycle.
Use Modelogix for your estimating and cost-modeling needs and Proliance for project controls in the
design-build-operate phases. Depending on your needs, use Proliance and Modelogix together or
independently, the choice is yours.
To learn more, call us at +971 50 451 7943 UAE.Copyright 2013 Trimble Navigation. All rights reserved. Proliance and the Proliance logo are registered trademarks of Meridian Systems. Modelogix and the Modelogix logo are trademarks of WinEstimator, Inc.
CapitalPlanning
ProcurementManagement
Progress and CommunicationManagement
ScheduleManagement
Document and Contract ControlBudget and
Cost Management
Project Control Software for Owners, Developers and Program Managers
12 SEPTEMBER 2013MID
DLE
EA
ST
THE BIG piCTurE BigproJecTMe.COM
imdaad succeeds in its reView of iso certificationFM company has successfully passed a rigorous review of its ISo certifications
imdaad’s attempts to expand its services in overseas markets has been boosted by the completion of a rigorous examination of its sustainability and safety credentials.
The company said it has successfully passed a rigorous review of its iSO 14001:2004, iSO 9001:2000, and OhSaS 18001:1999 certifications, which it explained “creates a procedural framework that will help support the company’s international expansion plan”.
“The periodic review is a clear testament of its unwavering commitment to international standards and strict compliance with environmental management systems, quality
management systems and health and safety measures,” said imdaad.
The Norway-based dNv Classification agency, the specialist global entity in auditing the compliance with iSO specifications, carried out an extensive assessment of all certifications including the environmental management mechanism through which the environmental performance of the departments affiliated to imdaad is followed up and improved.
The registered standard is an assurance that customers receive the same level of efficiency from imdaad, regardless of their requirement or locality.
FRENCH CONSULTANCY OTCE,
“Omnium Technique d’études de la
Construction et de l’Equipement” says it
has taken advantage of the construction
boom in the GCC.
Based in Lebanon and Saudi Arabia
it is extending its expertise to provide
customers with high-quality, innovative
engineering solutions more efficiently and
cost effectively.
Over the past few years, OTCE has
increased the number of its potential clients
through the achievement of outstanding
and innovative solutions in the fields of
engineering and construction. Last year
it established an office in Riyadh and says
that it is now positioned to make its mark in
the Kingdom’s construction sector.
General manager Simon Daniel in
the Middle East identified several areas
where OTCE can contribute with six
decades of expertise.
“The country’s sustained growth,
together with the extremely important
public and private investments as regards
to roads and infrastructure, industrial
and hospital projects along with high
rise buildings, fields in which we have
real distinctive assets, create a favorable
environment for our development in
Saudi Arabia,” said Daniel.
Daniel added the consultancy firm
is concentrating on consolidating and
sustaining its approach.
oTce reaches TurNiNg poiNT iN sauDi araBia
French consultant says it has identified several areas where it can contribute
gcc healThcare speND
Barclays capital says healthcare exchange traded funds have attracted more than $190 million in investments this year and are one of the largest drawers of funds in current markets
yEARS
oTcE’S ExPERiEncE in conSTRucTion
42% hoSPiTAlS cuRREnTly undERwAy
37.9%
GRo
wTh
of
ThE ho
SPiTA
lS
in k
SA o
VER
nEx
T fouR
yEARS
Gcc hEAlThcARE
GRowTh
oVER ThE
nExT 10
yEARS
17%
46 million nuMBER of hoSPiTAl TREATMEnTS AcRoSS ThE Gcc in 2008
1020304050
1,200hEAlThcARE
PRojEcTS SchEdulEd in
kuwAiT duRinG 2011-2012
X100
13SEPTEMBER 2013 MID
DLE
EA
ST
THE BIG piCTurE
possibly…you
well-rounded mechanical engineers who can go beyond calculations to fitting into these coordinated engineering design models will render themselves invaluable.
five New TreNDs iN coNsTrucTioN aND BuilDiNg
Mike Miller, mid-atlantic division leader for Southland industries, in the uSa, and Jim Snyder, director of operations for construction company, the warrior group, also in the uSa, provide an insight into the trends to look out for this year
source: www.asMe.org
single-design modelTraditionally, engineering documents are given to the contractor to re-draw with different information. To save time and money, there’s a shift to have it all in-house from engineering to coordination. Through the proper coordination, models can and should go from engineering to construction.
materialsMiller says materials such as adapted sheet metal are popular as a guaranteed pressure class for high quality, but it’s how materials are being used that makes the difference. going to prefabrication off-site for construction fits right into the ongoing theme of improving schedules.
energy efficiencyEnergy consumption is always on the mind in construction, says Miller. he notes systems that recover energy through heat wheels and occupancy sensors are becoming vital. by recognising CO2 in the room, a sensor changes the ventilation and, therefore, the energy needed.
permanent modular constructionpotentially a huge trend in the coming decades.The key is changing people’s minds about what they envision. “They see it as boxes,” Snyder says, “but it can be so many things that you want it to be.”
14 SEPTEMBER 2013MID
DLE
EA
ST
NEWS ANALYSIS bigprojectMe.com
“Any competitive advantage gained
through corruption is a mirage.”
That is a quote attributed
to Robert S Khuzami, director of
Enforcement, US Securities and Exchange
Commission in an Ernst & Young report
that addresses the challenge facing
regional governments and companies as
they battle to stamp out the practices of
bribery and corruption in the Middle East.
The report, entitled ‘Managing Bribery
and Corruption risks in the Construction
and Infrastructure Industry’, covers the
global challenge of combating the issues
that arise in regions and countries that see
these negative practices flourish.
With regards to the Middle East, Robert
Chandler, partner, Assurance – Middle East
and North Africa, for Ernst & Young Middle
East, says that despite all appearances to
the contrary, corruption in the Middle
East is fairly widespread and is a legitimate
cause for concern for both governments
and companies in the region.
“Many Middle Eastern countries
fall in the lower half of the Corruption
Perceptions Index (the GCC countries and
Jordan are notable exceptions). Several
high-profile corruption investigations in
Western countries have related to activities
in the region,” he explains in the report.
“We have been seeing increasing Anti-
Bribery and Corruption (ABAC) measures
in many countries in the Middle East, but
bribery and corruption is still prevalent, as
shown by the numerous Foreign Corrupt
Practices Act (FCPA) cases involving
conduct in the region,” Chandler adds.
This is often because companies fail to
provide clear guidance to their employees
over what is regarded as acceptable and
“SEVERAl hiGh-PRofilE coRRuPTion inVESTiGATionS in wESTERn counTRiES hAVE RElATEd To AcTiViTiES in ThE REGion”
payiNg ThE priCEBig Project ME examines how prevalent bribery and corruption are in the Middle East region, and the challenges that come with eradicating such practices
15SEPTEMBER 2013 MID
DLE
EA
ST
NEWS ANALYSIS
unacceptable business practices specific
to the region, or the procedures to
manage such a situation, should it arise,
the report says.
However, Michael Adlem, partner –
Fraud Investigation & Dispute Services,
Middle East and North Africa, also with
Ernst & Young, tells Big Project ME that
the problem actually goes much deeper
than that.
“We spend a lot of our time working
for companies that are mostly US, UK and
European (owned), doing reviews of their
agency companies out here in the region.
And often we will find issues around
bribery when we do these reviews,” he says.
“I think it’s pretty much everywhere,
to be honest. We surveyed companies
around the region and it came back that
everybody saw it as a major problem in
the region, as a whole.”
“Even though in many countries here,
it (bribery) is an offence, but nobody
treats it very seriously. There is a UN
convention against corruption, which
most of the countries in the region have
signed up to, and that requires that they
put better legislation in place to bring
about prosecution and those sort of
things. There is an international initiative
to move things, but as with a lot of these
things, it’s not happening as quickly as the
UN would like,” he explains further.
In an alarming observation, the Ernst
& Young report states that although most
of the Middle Eastern countries have
ratified the United Nations Convention
against Corruption (UNCAC), there are
still gaping holes in the defence against
negative practices.
The Sultanate of Oman has not signed
up to UNCAC, while Saudi Arabia and
Syria are both signatories to it, but
have not ratified it. Furthermore, the
implementation of the specific policies
of the convention continue to pose
challenges to enforcers of the law.
“I think the problem is that nobody
has done very much about it, apart from
the US. If you look at the statistics, most
of the prosecutions around bribery and
corruption, 95% of them have come out of
the US, in the last 20 years,” Adlem says.
“I think the UK is in second place
with about 3%. So the rest of the world
has done very little and there’s very little
prosecution here in the Middle East.”
This urgently needs to change, he says,
if there is to be any major change in the
way business is done in the region. One
of the most common methods of bribery
comes in the form of ‘kickbacks’ and ‘gifts’,
which in the context of business dealings,
is almost viewed as normal business
practice in the regional market.
“Bribes, particularly in the form
of kickbacks, are still regarded as an
accepted part of doing business in the
Middle East, often with little thought
for potential to corporate reputation
damage,” says a research survey entitled
‘Bribery, Corruption and Fraud in the
Middle East,’ which was released by
Ernst & Young Middle East and polled 63
respondents from organisations in eight
countries in the region, between August
2011 and January 2012.
The countries included were: UAE,
Jordan, Kuwait, Egypt, Oman, Saudi
Arabia and Bahrain.
“EVEn ThouGh in MAny counTRiES hERE, iT (BRiBERy) iS An offEncE, BuT noBody TREATS iT VERy SERiouSly”
kickBAckSAre an accepted part of doing business in the Middle East.
middle east corruption surVey results
n 36% Strongly agree that corruption is a problem in the region
n 32% agree that corruption is a problem in the region
n 22% neither agree nor disagree that corruption is a problem
n 10% disagree that corruption is a problem
RoBERT chAndlER
MichAEl AdlEM
16 SEPTEMBER 2013MID
DLE
EA
ST
NEWS ANALYSIS bigprojectMe.com
Of those respondents, 36% said that
they strongly agreed that bribery and
corruption were major problems in the
Middle East. 32% said that they agreed
that it was a major issue. Only 10% said
that they disagreed with it being a major
problem. The remaining 22% neither
disagreed nor agreed.
Adlem does point out that the UAE
is putting in motion legislation that will
bring it in line with UN requirements, but
says that the proof of its effectiveness will
only come when the legislation is in place
and prosecutions take place.
He draws a parallel between the UK
Bribery Act, which was introduced in 2010.
“It (the UK Bribery Act) came into
force in 2011. We’ve not seen too many
prosecutions at the moment, though I
understand that there are one or two ones
in the pipeline. So when these countries
out here do put the legislation in place,
I think there will be some eyes watching
to see what will happen, to see if they
actually do enforce (the legislation).”
However, as alluded to earlier, the
culture of ‘gift giving and kickbacks’,
especially in this region, is a tricky
concept to tackle. On one hand, Adlem
says, the practice of giving ‘gifts’ is almost
cultural, and has been going on for a
long time. On the other hand, it can veer
into murkier territories when those gifts
become excessive and force or move
individuals into making a decision they
wouldn’t normally make otherwise.
“It’s not going to change overnight. I
think it’s going to be a gradual shift. But I
think what you’ve got to see is that some
efforts are being made to get rid of it
and to crack down on it. I certainly don’t
believe it’s going to happen overnight, it’s
going to take a long time,” he points out.
But he does encourage his clients, and
other companies operating in the Middle
East, to actively pursue Anti-Bribery and
Corruption policies, as he says it could
ultimately be to their benefit. Citing an
example of a local client, who declined
to introduce ABAC measures into his
business, despite working with US, UK
and European partners, Adlem said that
it lead to further complications down
the line when those same partners asked
to see his ABAC policies, his anti-fraud
policies, his audit policies and so on.
“My view is that you can turn that into a
competitive advantage and have all those
things in place and have them embedded
in your business. When you’re able to
demonstrate that, you’ll be able to win
these contracts because European and US
companies are really going to jump on to
that,” he explains.
This is because under some of these
acts, these companies can get caught and
prosecuted in their home nations. “We’re
already seeing this in the pharmaceutical
industry, with what’s happening in
China,” he says.
“Certainly the construction industry is
no different in that respect, because it’s
a big industry, and the spend is huge, it
ticks all the boxes.”
“We investigate this stuff all the time,”
he says. “Bids get opened, information is
shipped to other suppliers, so that they can
come in at the right price or underneath…
so they win the work and people get
kickbacks for providing that information.
I think anywhere you’ve got significant
spend, whether it’s in the construction
industry, the oil industry, or any industry,
there’s a massive risk of bribes being paid.
People will want to win contracts and
they’re prepared to pay money to win it.” n
“SoME EffoRTS ARE BEinG MAdE To GET Rid of iT (coRRuPTion) And To cRAck down on iT”
fiVe anti-bribery measures to consider
n introduce portionate Procedures
n show demonstrable Top-level commitment
n identify areas of High Bribery risk
n police Treasury and accounts Payable
n Monitor high risk transactions
coMPETiTiVE AdVAnTAGEFirms with anti-bribery measures in place will attract Western partnerships.
NOVEMBER 25, 2013JUMEIRAH EMIRATES TOWERS, DUBAI
THE INDUSTRY EVENT
THAT HAS THE WHOLE REGION
TALKINGRECOGNISING INDUSTRY
EXCELLENCE
SPONSORSHIP OPPORTUNITIES
COMMERCIAL DIRECTOR Michael Stansfield | +971 4 375 [email protected]
FOR FURTHER INFORMATION
MARKETING MANAGER Carole McCarthy | +971 4 375 [email protected]
NOMINATION ENQUIRIES
GROUP EDITOR Stephen White | +971 4 375 [email protected]
www.bigprojectme.com/awards/2013
ENDORSED BY
PLATINUM SPONSOR
SUPPORTING PARTNERS
CATEGORY SPONSORS
BPME2013AWARDS_Sept_v2.indd 1 9/4/13 4:22 PM
18 SEPTEMBER 2013MID
DLE
EA
ST
In PRoFIlE alaN rObErTSON BigproJecTMe.COM
19SEPTEMBER 2013 MID
DLE
EA
ST
In PRoFIlE alaN rObErTSON
analysts are paid to be smart. They’re
paid to look at the data, the facts
and the information and make the
smart decisions.
Whether a real estate analyst, a
financial analyst or even an IT analyst, the
job description tends to remain the same.
They discover meaningful patterns within
the data, and then use those patterns to
guide their clients towards making the
decisions that bring in profit and success.
Alan Robertson, the chief executive
officer of Jones Lang LaSalle for the
Middle East and North Africa, is certainly
a man who knows a pattern when he
sees it, and luckily for local real estate
investors, the ones he sees in the Middle
East are very promising.
“Generally, it’ll be a pattern of growth.
There will be ups and downs of course,
but there will be growth patterns,” he tells
Big Project ME.
“If you look at Dubai, last year, the
population increased by about 3%. So if
we say that Dubai’s population is about
2 million, then that’s roughly about
60,000 people who will all need to have
somewhere to work, somewhere to shop
and somewhere to stay.”
“So it’s generally going to be a growth
story, but there will be some ups and
downs along the way, and one potential
danger sign would be if the residential
prices get carried away,” he warns. “If they
rise too fast, they could get over heated
again, and that wouldn’t be too good for
the market in the long-term.”
Having joined Jones Lang LaSalle
MENA as CEO in 2011, Robertson has
been involved in the property market for a
couple of decades.
Prior to his current role, Robertson
was the managing director of JLL Turkey,
a position he held since 2008. Before
that, he worked in commercial property
markets in the UK from 1983 to 2008, and
took over the firm’s Scottish operations
from 2005.
Given his wealth of experience and
knowledge, perhaps it’s interesting to
note that that he’s quick to point out that
the real estate market in the region is in
recovery mode and that this is good news
for contractors.
“If you take Dubai, the residential
market began to recover 18 months ago.
Throughout 2012 we saw progressive
recovery. It started with the very best
locations and the very best projects and
the very best developers, but gradually, as
we come through 2013, the recovery has
become more widespread.”
“That’s one of the key points in the way
the market has evolved over the last 18
months. The recovery started at the very
best and it has now expanded across a
wide range of sectors,” Robertson explains.
“iT’S GEnERAlly GoinG To BE A GRowTh SToRy, BuT ThERE will BE SoME uPS And downS AlonG ThE wAy”
Alan Robertson, chief excutive officer of Jones Lang LaSalle MENA, speaks to Gavin Davids about how the Dubai real estate market is shaping up
dubai population growtH (2013)
n 4.8% dubai population growth as of 25/08/2013
n 2,174,000 Estimated number of people living in dubai in august 2013
n 2,068,000 Estimated number of people living in dubai in august 2012
n 85% Estimated percentage of population that are expatriates
REcoVERy PAThDubai’s real estate recovery started in the best markets in the emirate.
rEadiNg ThE paTTErN
20 SEPTEMBER 2013MID
DLE
EA
ST
IN PROFILE AlAn RobeRtson bigprojectMe.com
It would be fair then to ask just what it
is that is driving this growth in the market.
Robertson admits that there is no one
clear definite reason. Rather, he attributes
the recovery to a variety of factors, which
include the strength of the regional
economies and their visibility as ‘safe
havens’ for investment.
“This is especially true for Dubai,”
Robertson says, “it has benefited from
being a safe haven, both on a regional
basis and on a broader basis.”
“As a result of the Arab Spring, we’ve
seen Syrians, Egyptians and so on, invest
their money into the market here. It’s not
only from the (surrounding countries),
the GCC and the wider Middle East are
probably the biggest single sectors, but as
a result of problems in the Eurozone, for
example, we’ve seen a lot of European and
Russian money coming into Dubai. We’re
also seeing money from the Asia-Pacific
region,” he asserts.
“As for the tourism market, again,
Dubai has benefited from the Arab Spring.
People who used to go to Lebanon or
Egypt are now coming here. So there has
been an increase in tourism, and that
obviously benefits the hospitality and
tourism sectors,” Robertson adds.
Terming the UAE as one of the most
active development markets in the world,
Robertson points out that it’s quite likely
that the Middle East will end up playing
a massive role in shaping the global
construction industry.
“If you look at Europe, it’s pretty slow
in terms of new development and that’s
likely to remain that way for some time.
The US, that’s also been slow. Perhaps it’ll
recover quicker than Europe, but I think
it would be difficult to find a place in the
world where there’s more happening in
the way of new projects being rolled out,
than we’re seeing here,” he explains.
The success of the ‘Dubai Story’, he
says, lies in the continual development
of its infrastructure, which makes it more
and more attractive to foreign investors as
it continues to grow.
“The better the infrastructure gets, the
bigger the airport gets, the more direct
routes there are, the more attractive it
becomes to corporates as a regional
headquarters location,” Robertson says.
“And the more tourist facilities there are,
the more attractive it will be to a large
number of people who get to come here. So
it’s accessibility, as a place and its quality of
life, whether building or infrastructure, all
make a very positive contribution.”
Tied into this infrastructure
development is Dubai’s desire to host
the 2020 World Expo, he adds. With
the emirate making a concerted push
towards winning its bid for the six
month expo, Robertson says that the
long term benefits to the country and
city will be immense.
“I think it would be fantastic, not just
for Dubai, but for the whole UAE, if Dubai
was selected as the host venture for Expo
2020. One of the strengths of Dubai and
the location of Dubai World Central, is
that there’s a lot of infrastructure already
there. The site has got a fantastic road
network already and it’s got an airport on
its doorstep. There are already plans to
bring the metro to the site and it’s already
master-planned,” he points out.
“ThE REcoVERy hAS now ExPAndEd AcRoSS A widE RAnGE of SEcToRS”
AcTiVE dEVEloPMEnTAlan Robertson says the UAE is one of the most active development markets in the world.
SAfE hAVEnDubai’s calm and stability has attracted investors back to the market.Hotel market
summary
n 58,100 rooms current hotel supply
n 10,900 rooms Future supply (2013-2015)
n 85% 2013 yTd occupancy
n $267 2013 yTd adR
Big Project
Date/Time
Art Director/Designer
Mac Artist
Copy Writer
Production Manager
Account Service
Art Buyer
Proofreader
Job #
Bleed
Trim
Live
Mechanical Scale
Print Scale
Colors Spec’d
Traffic Manager
Document Name
234 mm x 290 mm
224 mm x 280 mm
194 mm x 250 mm
1:1
None
4C
Jimmy H
None
Darren
None
Terri
Lauren
John/Jules
None
XYL1-AWS-13-01889 Boosting Arabic 224x280.inddXYL1-AWS-13-01889 User LogFonts
Linked Graphics
Colors In-Use
Minion Pro Regular Avenir Next LT Pro Bold, Regular, Medium
3011101-Booster_toned-IsoCv2-160dpi.tif CMYK 313 ppi Xylem_tag_w.eps Lowara_Xylem_w.eps 3011101-Brain-IsoCv2-R.tif CMYK 810 ppi GHV_L_pump_New Modular HYDROVAR_1_112007-50dpi-IsoCv2-R.tif CMYK 320 ppi GVF_GVD30_SV (071)-25dpi-IsoCv2-R.tif CMYK 331 ppi
Cyan Magenta Yellow Black
nc-dyoung-macNC-StudioColor
Darren YoungLocation
CONT
eNT
Boosting Ad ArabicJob Description
Publications
2-15-2013 1:50 PM
xyleminc.com | Bell & Gossett | Lowara | Goulds Water Technology© 2013 Xylem Inc. Lowara and Bell & Gossett are trademarks of Xylem Inc. or one of its subsidiaries. Goulds is a registered trademark of Goulds Pumps, Inc. and is used under license.
S:194 mmS:250 m
m
T:224 mmT:280 m
m
B:234 mmB
:290 mm
22 SEPTEMBER 2013MID
DLE
EA
ST
IN PROFILE AlAn RobeRtson bigprojectMe.com
real estate oVersupply
jones lang laSalle’s second quarter abu
dhabi Market overview report for 2013
has found that the uaE capital’s real estate
markets (across all sectors) remain in over-
supply, with additional new supply still in
the pipeline leading to further increases in
market-wide vacancy rates.
“There continues to be a significant
distinction between high grade and low
grade product - while the prime market
is showing signs of stability and early
recovery, the performance of lower
grade stock continues to decline,” the
report says.
It added that during Q2, 2013, prime
residential rents remained stabled,
following an 8% growth during the first
quarter.
Furthermore, the real estate research
consultancy pointed out that the overall
office market remained over-supplied,
‘pending further progress with government
economic development initiatives to
diversify the economy and generate new
jobs’. However, the report did state that
prime office rents had remained stable for
the last four quarters.
Finally, the report said that although hotel
occupancy levels had increased by 8%
during the first five months of 2013,
average daily rates have continued to
remain under pressure, declining by 2%.
“due to the positive growth in
occupancies, RevPaR levels in the year to
May 2013 have experienced an increase
of nearly 11% compared to the same
period last year,” it added.
“With the activities of Dubai World
Trade Centre expanding on to the Expo
site, there’s a permanent long-term use, a
sort of legacy, after the Expo.
From that point of view, Dubai ticks
a lot of boxes, and it’s not like they’re
starting with a clean sheet of paper, a lot of
it is already done. In my view, that makes
it a very strong contender.”
As a result of this planned expansion
and growth, Robertson says that Jones
Lang LaSalle has decided to expand its
operations in the Middle East.
“We started project management,
and a few years ago, we started property
management. These are core businesses
across the world for Jones Lang LaSalle,
but they’re relatively new here. Project
management accounts for about 20% of
our global revenue, so it’s a big part of
the wider business. Here, we’re primarily
serving our corporate clients, so we’re
doing some new build projects for
multinational corporates, and what we
really specialise in is fit-out for corporate
offices, but we’re also branching out
into some retail projects and one or two
industrial ones, but it’s mainly in offices
that we’re providing project management
services for fit out.
“We are also equipped to do new build
project management. We don’t expect to
take on specialist PM companies for the
really massive projects, but for small to
medium new size builds, we believe we
can offer a good service.”
With construction work in the UAE set
to continue to boom, Robertson concedes
that there needs to be some caution
exercised, with certain sectors likely to be
tough markets for new investors.
“I don’t think there are many
opportunities in the very large shopping
malls, because these have been done, by
and large, and they’re very tightly held, so
they don’t really come out in the market.”
“But for smaller retail developments,
such as a supermarket with an arcade of
10 shops beside it, (I think) Dubai needs
more of them, and they would be good
investment packages.”
“In the office market, you need
to be selective, but we do see some
good opportunities where some of the
corporates will need to do ‘built to suit’
deals to get the space that they want.
So you’ll end up with a single-tenant
buildings which are on long term lease,
and we think this will be very attractive to
investors”, he concludes. n
TickS ThE BoxESDubai’s pre-existing infrastructure makes it a strong contender for World Expo 2022.
“ThE BETTER ThE infRASTRucTuRE GETS, ThE BiGGER ThE AiRPoRT GETS, ThE MoRE diREcT RouTES ThERE ARE, ThE MoRE ATTRAcTiVE iT BEcoMES To coRPoRATES AS A REGionAl hEAdquARTERS locATion”
CONSULTANTS AND ARCHITECTS CUP
CONTACT:
PUBLISHING DIRECTORRaz Islam +971 4 375 [email protected]
COMMERCIAL DIRECTORMichael Stansfield +971 4 375 [email protected]
MARKETING MANAGERCarole McCarthy+971 4 375 [email protected]
GOLF DAYS
Big Project ME will be hosting a Buyer & Sponsor only Golf Day in
October. The aim is for you to meet the consultants and architects on a one
to one basis and network in a relaxed, fun-filled
environment!
24TH OCTOBER, 2013VENUE: EMIRATES GOLF CLUB, DUBAI.
FALDO COURSE
The Global Leader in Managing Construction Risk
BPME_GolfDay_Sept_v2.indd 1 9/4/13 4:28 PM
24 SEPTEMBER 2013MID
DLE
EA
ST
on SITE habTOOr palaCE COMplEx BigproJecTMe.COM
Project Name
Location
Site Area
Building Type
Construction Cost
Al Habtoor Island (Habtoor Palace Complex)
Sheikh Zayed Road
92,903m2 (GFA: 357,000m2)
Hospitality
$544.5 million
for most of the 1980s and 1990s the
Metropolitan Hotel on Sheikh Zayed
Road was considered to be one of
Dubai’s most recognisable landmarks.
Helped in no small part by being one of
the first hotels in the city, the Metropolitan
became a gathering point for expats from
all over the world, who were working in a
city and country that was yet to undergo
the prodigious rate of development that is
now taken for granted.
As Dubai continued to grow and
expand, the 33-year-old hotel became
something of an anachronism as newer
and glitzier rivals sprung up across Dubai
and down Sheikh Zayed Road.
With Dubai Marina and Jumeirah Lake
Towers growing in size and becoming
more popular with tourists and residents,
a number of hotels opened branches there
as well, further intensifying the pressure
on the Al Habtoor Group owned property.
The result was that the Metropolitan
became displaced in an ultracompetitive
marketplace and soon fell by the wayside,
unable to attract sufficient clientele to be
financially viable. Dwarfed by the world’s
tallest hotel, the gigantic JW Marriot
Marquis, it was eventually decided to
bring the shutters down on what was once
a Dubai icon.
So it was in May 2012, following an
extravagant send off, the hotel’s owners
decided to demolish the entire property,
levelling the whole hotel and bringing to
a close nearly three decades of memories
and stories. However, this was only
phase one of an ambitious plan by the Al
Habtoor Group, a plan that will revitalise
the site and see the development of a
massive complex that will house three
top of the line hotels, a state of the art
‘Water Theatre’ and gardens modelled on
the ones in Versailles.
Martyn Wild, the projects director
for the Al Habtoor Group, explains that
the three new hotels due in 2015 will
all be managed by the Starwood Hotels
25SEPTEMBER 2013 MID
DLE
EA
ST
on SITE habTOOr palaCE COMplEx
“iT’S ABouT cREATinG A culTuRE in ThE PRojEcT whERE ThE oVERAll PRojEcT iS ThE MoST iMPoRTAnT”
ThE MET rEbOrN
Big Project ME visits the redevelopment of the old Metropolitan Hotel, which is set to become the Habtoor Palace complex. With just 44 months to complete four projects, the pressure is on, Gavin Davids reports
26 SEPTEMBER 2013MID
DLE
EA
ST
ON SITE Habtoor Palace comPlex bigprojectMe.com
and Resorts, with around 1,600 rooms
available to guests.
“There are three hotels, there’s the
Westin, which is a business hotel. That’s
the big one with 1,000 rooms,” he tells
Big Project ME during a site visit to the
project. “The St Regis is a very upmarket,
six star hotel offering, with about 250
rooms. The rest of the rooms are in the W.
The W is something different. I suppose
the target market (for it) is young, affluent
people. It’s everything you don’t expect.”
“I think it’s something like July,
September and November for the
openings of the hotels, they’ll all open
before the end of September. I think it’s
the St Regis first, then the W and then the
Westin, which is the big one,” he adds.
Furthermore, the complex will see the
development of three levels of basement
car parking, which will stretch out under
the gardens and avenue that lead up to the
St Regis hotel. In addition, the complex
will be built on a podium that will stretch
across nine levels, housing mezzanine and
service levels, along with parts of the hotel.
“The site is 92,903m2, and the gross
floor area is 357,000m2. There are three
basements over the whole site. At the
end of the site (the entrance) we’re not
able to build above ground level. That’s
because of government zoning. So we
have parking only, but on top of the
parking, we’ve got this classical type
garden, a Versailles type garden, with a
grand entry up to the hotel, with trees on
both sides and the St Regis at the end,”
Wild explains, painting a vivid picture.
“This is a classy, six star hotel. It’s all
period, the building and the inside. It feels
like a country house rather than a hotel.
It’s very intimate and highly serviced,
this is the jewel in the crown. So all the
building is at the (north) end. And again,
there are three levels under this, and it’s a
combination of parking and back of house.”
Holding more than 3,000 parking
spaces, the vast basement levels will also
hold kitchens, laundries and other hotel
services in them, Wild says.
“MEP iSn’T A wAlk in ThE PARk, BuT EVERyBody’S donE hoTElS BEfoRE (So ThEy know whAT To do). iT hAS To BE donE PRoPERly, BuT ThE ThEATRE iS whERE ThE REAl chAllEnGE iS (foR ThiS PRojEcT)”
uPMARkET dESTinATionThe project will be an upmarket tourist resort once complete.al Habtoor island
complex principals:
n Main contractor Habtoor leighton Group
n project Manager Habtoor Group
n hotel operator Starwood Hotels and Resorts
n Theatre operator Franco dragone Entertainment
n concept john R Harris
n after concept khatib & alami
27SEPTEMBER 2013 MID
DLE
EA
ST
ON SITE Habtoor Palace comPlex
“We have a podium that’s actually
nine levels high. Some of those levels
are mezzanine levels, some are service
levels, but it’s a significant podium. The
St Regis is in the front of that podium and
the bottom of the Westin and W hotels are
also in that podium,” he explains.
Designed as two towers, the Westin hotel
will go up to 56 floors, while the W will go
up to 45 floors. The St Regis will have six
public levels plus the basement. The top
of the podium will also have landscaped
areas, pools and other facilities.
Although the hotels will take up the
bulk of the complex, the main attraction
of the complex will be a $15 million
dollar ‘Water Theatre’ that will host an
extravagant and elaborate Cirque de Soleil
inspired show, similar to ones in Las
Vegas, Macau and China.
Guests will enter the theatre through
the W hotel, walking through an atrium
that will be populated with restaurants
and retail outlets that will be managed by
the Al Habtoor Group.
“The theatre is something a bit
unusual. It’s more of a show theatre, it’s
certainly not a Shakespeare-type theatre.
The producer is a guy called Franco
Dragone. He started Cirque De Soleil,
left it after it was established and created
his own company called Franco Dragone
Entertainment Group and he’s done two
or three in Las Vegas, one in Macau, he’s
doing one in China and he’s doing ours
next,” Wild enthuses.
“It’s a more elaborate Cirque de Soleil,
it’s like it times five. We’ve designed
a building around the show. Franco
Dragone Productions design the show,
give us the concept and we design and
build the building around the show. It’s
specific to the show, and it may run for ten
or 15 years. So it’s a long running affair.”
“The auditorium 1,400 seats and it’s a
water show. So the stage is a pool. Some of
it is solid, but the rest of it is a pool and the
seats are built around that. The auditorium
is 37 m high, and you get performers
diving from the top, into the water, with
boats coming in. It’s extremely elaborate
“if you wAnT To do SoMEThinG likE ThiS wEll, And quickly, ThEn you’VE GoT To Buy ThE RiGhT ExPERTiSE. you cAn’T ShoRT-chAnGE ThAT PRocESS”
28 SEPTEMBER 2013MID
DLE
EA
ST
ON SITE Habtoor Palace comPlex bigprojectMe.com
“iT’S ThE oRGAniSATionAl SkillS ThAT ARE kEy To A conTRAcToR’S PERfoRMAncE, And ThiS ThEy hAVE. MAnAGinG A GEoGRAPhicAlly lARGE SPAcE, wiTh A loT of PEoPlE, A loT of SuBconTRAcToRS, ThE nuMBER of SPEciAliSTS iS ASTRonoMicAl”
and I think it’ll be extremely successful
in Dubai,” Wild says, adding that the first
show is pencilled in for April 2016.
Despite his excitement about the water
theatre project, Wild does concede that
it has posed the biggest challenge for
his contractors. Although there are only
44 months for the entire project to be
completed, he remains confident that
the target date will be met, thanks to the
expertise of the site’s main contractor,
Habtoor Leighton Group.
“A problem that runs through the entire
project is the timescale. 44 months to
complete a project like this is challenging.
So the design and construction are
happening simultaneously, so a very tight
relationship between the consultant,
designer and contractor is absolutely
essential,” Wild asserts.
“This is what we’ve got, very good
communication and cooperation. It’s
about creating a culture in the project
where the overall project is the most
important. Each person’s individual
requirements have to be put second. The
first priority is the project.”
“To get people in that state of mind
is not easy, but this is what we’ve
done. We’ve got a very good, inter-
company team feeling, and this is the
key to any project. It’s about creating a
team, instead of individual companies
operating independently, if you can
generate that team culture, you’re half
way there,” he explains.
“That’s what we’ve done here. There
isn’t the fear that the next problem is going
to hurt us. The next problem, we’ll solve
like the last problem, and the problem
before that. That’s not easy to do. At
the beginning, people are nervous and
suspicious, but eventually trust builds and
builds, till eventually, if one person in the
team falls down, someone will support
them instead of exploiting a problem
someone else has got. At the end of the
day, if one of the team fails, then we all fail.
TiME chAllEnGEContractors only have 44 months to complete the four projects.
29SEPTEMBER 2013 MID
DLE
EA
ST
ON SITE Habtoor Palace comPlex
Hotels principals
n st regis interior Design Bilkey llinas
n w hote Silverfox Studios
n westin wa International
n Theatre and public atrium luxe Interior International
n Theatre consultant auerbach Pollock Friedlander
n lighting Maurice Brill lighting design
It doesn’t matter who it is, the project fails
and we simply won’t allow that to happen.”
He admits however, that building
the water theatre will be a challenge,
especially from an MEP perspective,
thanks to the unique challenges it poses.
“MEP isn’t a walk in the park, but
everybody’s done hotels before (so they
know what to do). It has to be done
properly, but the theatre is where the
real challenge is (for this project). You’ve
got water jets that are 20-30m high, the
pumps and pipes to send water, huge
amounts of water. The pool is emptied
and filled before your eyes. The services
that deal with that are unusual. Now the
theatre consultant helps with that, but the
team has to be on the ball to deal with it
as well,” says Wild.
With a construction schedule that will
run 24/7 and a labour force that will hit
close to 6,000 once construction hits its
peak and it all sub-contractors start work,
Wild cannot stress enough how important
it is to have a main contractor that is well
versed in dealing with massive projects
such as the Habtoor Island complex.
“They’re a company with international
expertise, and they bring a lot of
knowledge to this project,” he says. “The
management of time and resources is
at the centre of that knowledge. You can
bring in 6,000 people and the productivity
can still be negligible if they’re not
managed properly. The right number
of supervisors, the distribution and the
sequence of work and so on, this is real
contracting expertise.”
“From the contractor’s point of
view, that’s mainly taken care of by the
consultants and the design work. It’s
the organisational skills that are key to
a contractor’s performance, and this
they have. Managing a geographically
large space, with a lot of people, a lot of
subcontractors, the number of specialists
is astronomical. Managing all those
people is the real challenge for the
contractor, and they have the expertise for
that,” Wild insists.
With between 50 to 75 subcontractors
set to be hired on the project, these
attributes will certainly be needed. The
selection process is set to be rigorous,
with Al Habtoor seeking out views from
the main contractor and consultant on
the project. An initial ‘long list’ is whittled
down to a select few, who are then invited
to tender and have their bids assessed.
With construction contracts for the
hotel worth $544.5 million there is clearly
a lot riding on these projects for the
Habtoor Group. However, if Wild is feeling
the pressure, he certainly isn’t showing it.
“We’re doing the superstructure at
the moment, we’re up to ground level in
some places. The superstructure is well
underway and we’ve just appointed the
MEP contractor, who is beginning work.”
“Next will be the façade contractor,
so we’ve done the foundations, then the
substructure in the basement, now we’re
on the superstructure above ground,” he
says, adding that the completion dates
will be staggered, despite all the working
happening at once.
Clearly then, Wild’s initial point about
choosing the right team is extremely
valid. With so much work to do on what
is effectively four construction sites in
one, all within 44 months, having a team
you can trust and rely on is critical, a
viewpoint he readily agrees with.
“If you want to do something like this
well, and quickly, then you’ve got to buy
the right expertise. You can’t short-change
that process,” he insists. n
PRojEcT PlAnnERMartyn Wild outlines plans for the massive hotel complex.
MedcoP.O. Box: 17301, Jebel Ali, Dubai, U.A.E., Tel.: +971 4 881 8821 Fax: +971 4 8818944,
Showroom: Al Kwakeb Building, (B-Block) Sheikh Zayed Road, P.O. Box: 2904, Dubai, U.A.ETel.: +971 4 343 7400 / 343 7500 Fax: +971 4 3437600, email:[email protected]
Al Garawi GroupAl Garawi Galleria, Al Orouba-King Fahad Highway Junction Olaya, P.O. Box 41122, Riyadh 11521, Saudi ArabiaTel.+966 1 4196096 / 4195058 Fax. +966 1 4196101 / 4196103, email:[email protected] / www.algarawigroup.com
Al Garawi Group an authorized distributor of the following licensee for Saudi Arabia, U.A.E., Bahrain, Qatar, Oman, Jordan, Lebanon, Kuwait and Yemen.Wolverine World Wide, the global footwear licensee for Caterpillar Inc.
ww
w.ca
t.com
© 2
013
Wol
verin
e W
orld
Wid
e. C
AT, C
ATER
PILL
AR, t
heir
resp
ectiv
e lo
gos,
"Cat
erpi
llar Y
ello
w" a
nd "C
ater
pilla
r Cor
pora
te Y
ello
w," a
s w
ell a
s co
rpor
ate
and
prod
uct
iden
tity
used
her
ein,
are
trad
emar
ks o
f Cat
erpi
llar a
nd m
ay n
ot b
e us
ed w
ithou
t per
mis
sion
. Al G
araw
i Gro
up, a
n au
thor
ized
dis
tribu
tor o
f Cat
Foo
twea
r for
Wol
verin
e W
orld
Wid
e,a
glob
al li
cens
ee fo
r Cat
erpi
llar I
nc.
MedcoP.O. Box: 17301, Jebel Ali, Dubai, U.A.E., Tel.: +971 4 881 8821 Fax: +971 4 8818944,
Showroom: Al Kwakeb Building, (B-Block) Sheikh Zayed Road, P.O. Box: 2904, Dubai, U.A.ETel.: +971 4 343 7400 / 343 7500 Fax: +971 4 3437600, email:[email protected]
Al Garawi GroupAl Garawi Galleria, Al Orouba-King Fahad Highway Junction Olaya, P.O. Box 41122, Riyadh 11521, Saudi ArabiaTel.+966 1 4196096 / 4195058 Fax. +966 1 4196101 / 4196103, email:[email protected] / www.algarawigroup.com
Al Garawi Group an authorized distributor of the following licensee for Saudi Arabia, U.A.E., Bahrain, Qatar, Oman, Jordan, Lebanon, Kuwait and Yemen.Wolverine World Wide, the global footwear licensee for Caterpillar Inc.
ww
w.ca
t.com
© 2
013
Wol
verin
e W
orld
Wid
e. C
AT, C
ATER
PILL
AR, t
heir
resp
ectiv
e lo
gos,
"Cat
erpi
llar Y
ello
w" a
nd "C
ater
pilla
r Cor
pora
te Y
ello
w," a
s w
ell a
s co
rpor
ate
and
prod
uct
iden
tity
used
her
ein,
are
trad
emar
ks o
f Cat
erpi
llar a
nd m
ay n
ot b
e us
ed w
ithou
t per
mis
sion
. Al G
araw
i Gro
up, a
n au
thor
ized
dis
tribu
tor o
f Cat
Foo
twea
r for
Wol
verin
e W
orld
Wid
e,a
glob
al li
cens
ee fo
r Cat
erpi
llar I
nc.
32 SEPTEMBER 2013MID
DLE
EA
ST
BigproJecTMe.COM
throughout most of recorded
history, the Arabian Peninsula has
been regarded as the crossroads
for the East and the West to meet
and trade. Records show that as long as
1,500 years ago, traders from India, the
Mediterranean and Egypt converged on
places like Muscat and Aden to trade and
exchange goods.
As time went by, the region became
strategically important, with Britain
establishing alliances and a significant
presence in Saudi Arabia and the rest
of the region. But this all paled into
insignificance once oil was discovered
in the region in the 1930s. Since then the
GCC region has been one of the most vital
and significant areas in the world.
The oil wealth has led to extreme
changes in the region, funding a surge
in development and growth that has
continued at an ever increasing pace.
With these changes came an increased
surge of trade. Leading this surge was
Dubai, which transformed itself into a
global hub for trade of all kinds, whether
financial, commercial or retail.
Now the rest of the region is starting
to catch up, with Qatar investing billions
of dollars into its development plan, and
Saudi Arabia investing even more into its
infrastructure and future planning.
Business is booming in the GCC, and
the region continues to see an influx of
travellers, both for business and pleasure.
According to statistics released by Dubai’s
Department of Tourism and Commerce
Marketing, an estimated 9.89 million
international visitors will travel to Dubai
this year.
Experts have predicted that Dubai
could be the world’s number one travel
destination by 2020, should it win the right
to host the World Expo. By all accounts,
the government is quite confident that
this will happen.
This then explains why construction
industry trackers have noted a surge in
the development of hospitality projects
in the city and beyond. This is no small
thing, with many experts predicting that
the regional hospitality industry could
have a major and defining impact on
regional construction, and by extension,
the regional economies.
According to a February report by
Ventures ME and commissioned by dmg
:: events, the construction sector is set
“MonTh By MonTh, BudGETS ARE BEcoMinG MoRE RESTRicTEd And ThAT ThE woRld hERE iS BEcoMinG A loT MoRE coST conSciouS”
Big Project ME talks to some of the leading authorities in regional construction, to get a sense of where the hospitality sector is going and what that means for contractors and consultants
hOSpiTaliTy
MaTTErS
HoSPITalITy iN fOCuS
33MID
DLE
EA
ST
HoSPITalITy iN fOCuS
SEPTEMBER 2013
Hospitality sector figures
n $27 billion value of hospitality construction in 2013
n $5.5 billion value of hospitality construction in 2012
n 250 number of hotel rooms needed to be built in dubai
n 80,000 number of beds needed ahead of Expo 2020
34 SEPTEMBER 2013MID
DLE
EA
ST
HOSPITALITY IN FOCUS bigprojectMe.COm
to grow by 19% in 2013, with completed
construction projects set to be worth a
staggering $81.6 billion.
In 2012, the largest sectors in the
GCC projects market were residential,
commercial and hospitality, the report
said. Each were valued at $29.4 billion,
$12.2 billion and $5.5 billion respectively,
in terms of projects completed. However,
by 2013, the value of completed hospitality
projects is expected to be $27 billion.
This comes as no surprise to Andrew
Johnson, director for Middle East and
North Africa, at Mace International, a
construction consultancy that has a well-
earned reputation as a ‘go-to’ firm when it
comes to hotel construction.
“Approximately 30% of our business is
related to the hospitality sector, one way or
the other,” he tells Big Project ME. “Since
we began operating in the UAE, we have
delivered 20 hotels around the GCC region,
which amounts to around 6,500 to 7,000
keys over the last ten years, so it’s quite a
big part of our business.”
“We’re looking forward to the UAE
winning the 2020 Expo bid. I think
that would add great impetus to the
construction industry here, and especially
the hospitality sector. I think the focus in
Dubai, in fact Abu Dhabi and the whole
of the UAE, has moved back into social
building. When I say social building, I mean
the attractions for tourism. In Dubai, that’s
certainly going to increase,” Johnson says.
This sense that the UAE’s bid to host
Expo 2020 is driving increased hospitality
construction is one that’s shared by
Cecilia Clason Skjorten, director of Cecilia
Clason Interiors, a furniture, fixtures and
equipment consultant based in Dubai that
has worked on a number of luxury hotels in
the region, including the Kempinski Hotel
and Beach Resort in Oman.
“wE’RE lookinG foRwARd To ThE uAE winninG ThE 2020 ExPo Bid. i Think ThAT would Add GREAT iMPETuS To ThE conSTRucTion induSTRy hERE, And ESPEciAlly ThE hoSPiTAliTy SEcToR”
AndREw johnSon
“Well, I think the biggest point that’s
happening is the Expo, and I think that
Dubai has a very high chance of winning
it. So I think with the basis of that,
something like 250 new hotels need to be
built. They’ll need around 80,000 beds
and they’ll need to be in all sorts of price
brackets,” she points out.
“The tourism (market) here has tended
to be five star hotels, and that’s tended
to be 50% to 60% of the market share. So
I think that the future trends, and where
we’re going to see a lot of development,
is in the three to four-star sector, which is
quite an unexplored market share.”
While there are construction costs to
consider, generally they don’t vary greatly
when building the physical structure
of a hotel, whether it’s five- or four- or
three star. However, there are a number
of variable factors that contractors and
consultants have to be aware of during
the design and build phase, that could see
their costs rise.
“I think we typically find that month
by month that budgets are becoming
more restricted and that the world here
is becoming a lot more cost-conscious
than it was ten to15 years ago,” says John
Wolfenden, director of Architecture and
Engineering at KEO International.
“I think business plans are now
something that are being discussed,
whereas in the past it was an unknown
thing. I think there has been an
cEciliA clASon
ExPo fAcToRWorld Expo 2020 is a major factor in Dubai’s surging hospitality construction growth.
Rolling shutters and high-speed doors
Loading technology
Europe’s largest industrial door programme• Europe’s no. 1 with more than 75 years of experience
in the door construction business
• Sustainably produced and certifi ed
• 24-hour service: there for you around the clock
Industrial sectional doors
TEL: +971-4-8807677E-mail: [email protected]
30/13
36 SEPTEMBER 2013MID
DLE
EA
ST
HOSPITALITY IN FOCUS bigprojectMe.COm
evolution and that obviously puts
constraints on us as consultants in
being able to deliver the full services to
the quality that we want to deliver, on
what is ultimately a reduced budget for
ourselves. We’ll have to think smarter
and design more efficiently,” he warns.
Skjorten adds that while the actual cost
of building a hotel is dependent of the cost
of building materials and so on, the trend
towards smaller, less opulent and lower
rated hotels has meant that designers,
contractors and consultants have had to be
careful about their choices when it comes
to fitting out a hotel for a client.
“I was doing a bit of research on this
actually, about how a three- or four-star
hotel, versus a five-star hotel, how they
make their money and stuff. It’s basically
just by providing less facilities. So that
means less restaurants, no room service,
less fancy spas and gyms. I guess that’s
how they manage,” she explains.
“Because the construction costs are the
same, you have less operating costs and
also the material selections may be less.
You may not use marble, but use ceramics.
You use cheaper fabrics and you just have
less materials, for example. When I arrived
here from the UK, I was shocked at the
amount of finishes you could see in hotels,
and obviously the more finishes, the more
expensive it is.”
While Andrew Johnson admits that the
Mace Group tends to focus on more high-
end projects, he says that in his opinion, he
sees Dubai focusing more on the business
end of the market. However, he does point
out that other markets are picking up
whatever slack there may be in the sector.
“The UAE hospitality sector is running
at, they tell us, 18% growth. Tourism
is up, with the increased development
activity in places like Dubailand,
once they start building future tourist
attractions. The prospects for the
“wE’RE GoinG To SEE A loT of dEVEloPMEnT in ThE ThREE To fouR STAR SEcToR, which iS quiTE An unExPloREd MARkET ShARE”
culTuRAl TouRiSMAbu Dhabi is pushing cultural tourism, especially on Saadiyat Island.
dARREl STRoEBEl
john wolfEndEn
hospitality sector is very good. We’ve just
finished building the largest Ritz-Carlton
in the world in Abu Dhabi, which is a
different market.
“It doesn’t focus so much on tourism
for the hotel guests, though I’m sure that’s
changing. Abu Dhabi has recommenced
the museums on Saadiyat Island, they’re
moving towards cultural tourism rather
than bulk tourism. We’ve been working
Abu Dhabi for 16 years now, it goes
through various cycles, but basically, the
hospitality sector has never been quite as
robust as Dubai’s because it’s a different
market, but hopefully there’s potential for
more there,” he adds.
Another city that is likely to be a
massive hospitality market in the near
future is Qatar. With plans for the 2022
FIFA World Cup gathering steam, a
number of people are now turning their
thoughts towards the logistical nightmare
that will be housing the millions of fans
that are likely to descend on to the Gulf
country once the tournament starts.
‘They’re talking about 15,000 rooms
needed by 2022,” says Johnson, “That’s
a lot of hotels. If you divide 15,000 by…
an average hotel has 300 keys…well that’s
about 50 new hotels,” he calculates.
“They have a different logistical
challenge, in terms of how do they provide
that much accommodation for what is
AL0003 Fitout Ad_224x280_FA.indd 2 8/29/13 5:12 PM
38 SEPTEMBER 2013MID
DLE
EA
ST
HOSPITALITY IN FOCUS bigprojectMe.COm
“SAudi ARABiA, in TERMS of REliGiouS TouRiSM, iS TAkinG off AT ThE RATE of knoTS. ThE dEVEloPMEnT in kSA, PARTiculARly ARound ThE MEccA AREA, ThERE ARE SoME huGE MEGAPRojEcTS”
despite being lower than previously
forecast, the value of the Gcc interior
contracting and fit-out market in 2012
was $7.86 billion – an increase of 56%
against the 2011 figure of $5.04billion
and is expected to rise by 17% in 2013
to $9.2 billion.
In 2012, the uaE was once again the
largest interiors and fit-out market in the
Gcc and, at $2.83 billion, made up
36% of the $7.86 billion Gcc market.
It was followed by Saudi arabia and
Qatar which were valued at $2.6 billion
and $1.49 billion respectively. The kuwait
interiors and fit-out market was valued at
uS$472 million, oman’s at $314 million
and Bahrain’s at $157 million.
In 2013, the hospitality sector of the Gcc
interior contracting and fit-out market is
set to overtake the commercial sector and
take the second largest share of the market
– increasing in value by 31% from $1.2
billion to $1.57 billion.
“The interiors and fit-out market is seeing a
marked evolution, with owners refurbishing
existing properties, managing space
better and enhancing their environments’
sustainability. This trend is being driven
by investors acquiring partly completed
properties and renovating, expanding or
adding value rather than initiating new
developments. The interiors and fit-out
sector is responding well to these changes
in demand, and beginning to see growth
in new projects. Together, this puts the
market firmly on an upward trajectory,”
said Frederique Maurell, event director for
IndEX, a regional interiors and design
exhibition.
going to be a single event in their history.
Qatar probably doesn’t need 15,000 hotel
rooms past 2022. It’s a challenge for them
and I’m sure they’re working through it
and will come to a solution.”
Darrel Strobel, managing director of
MEP Engineering at KEO International,
adds that while Qatar’s hotels tend to fill
up at what he calls ‘strategic times’, he sees
the country moving towards being more
of a tourist destination, like Dubai, as it
tries to ensure supply matches demand.
“You always mention 2022 when
you’re talking about any market in Qatar.
In terms of the FIFA directives for Qatar,
they’re well short of that (for now). So
they’ll have to build a significant number
of hotels between now and then. When
you look at the future, in the short to
medium term, you’ll get a lot of activity in
this sector in Qatar,” he predicts.
“Right now, there is an increasing trend
towards small and medium boutique
hotels, of course there’s still the five-star
luxury end of the market, but (smaller
hotels) are growing in popularity.”
Both Strobel and Wolfenden agree that
Saudi Arabia is another major market for
the hospitality industry, fuelled as it is
by the annual religious tourism that sees
millions of Muslims visit the holy cities of
Mecca and Medina.
“Saudi Arabia, in terms of religious
tourism, is taking off at the rate of knots.
The development in KSA, particularly
around the Mecca area, there are some
huge megaprojects, and they’re all based
around religious tourism,” Wolfenden says.
“That’s something we can’t really ignore,
because the scope is actually huge. I’m not
sure that’s publicised or heard about much
as it’s obviously very local, but the numbers
are quite staggering. I believe most of the
major operators are already there, or are
planning on being there over the next two
or three years,” he asserts.
Although Johnson is cautious about
how difficult it is for an expatriate
company to work in Mecca, he concedes
that Mace is likely to be looking at the KSA
construction market with interest.
“Logistically, it’s quite hard for us,” he
says. “But one thing I can say is that we’ve
been appointed on the Kingdom Tower in
Jeddah, which contains a Four Season’s
hotel, and that will be one of our first
forays into the hospitality sector in KSA.”
“We are also bidding for another hotel
in Jeddah. It remains to be seen if we win
that, but yes, we are putting our toe into the
Saudi market.
“Hospitality is where we’re comfortable.
We know the operators, we think we’re
pretty good at delivering hotels, so it would
seem like a natural extension for us to
move across there.” n
as commuters drive down the
Sheikh Mohammed Bin Zayed
Road on the outskirts of Dubai,
they’d be forgiven in thinking
that aliens have finally decided to make
contact with humanity.
Rising above the dusty hoardings that
ring the under construction residential
and mix-used projects that are coming up
as part of the continued expansion of the
city is an odd structure that is actually the
herald for one of Dubai’s most enticing
tourism projects.
The giant dome-shaped steel structure
actually marks the completion of a key
stage in the construction of the IMG
Worlds of Adventure, a theme park that is
owned and being developed by the Ilyas
and Mustafa Galadari Group, the sibling
owned off-shoot of the Galadari Group.
“IMG Worlds of Adventure is essentially
a themed indoor entertainment facility
aka a theme park,” says Adam Alexander
40 SEPTEMBER 2013MID
DLE
EA
ST
on SITE iMg wOrldS Of advENTurE BigproJecTMe.COM
Total size of the project
Total area of Marvel Zone
Total area of Lost Valley
Total number of park components
Scheduled opening date
139,354m2
32,516m2
25,083m2
4
Early 2014
ridE Of a lifETiMEBig Project ME visits the site of the upcoming IMG Worlds of Adventure theme park, as the ‘Space Frame’ that marks a key phase of construction is completed
“ThERE ARE no ThEME PARkS in duBAi, So ThAT in iTSElf MAkES ThiS A MASSiVEly dEMAndEd EnTiTy”
41SEPTEMBER 2013 MID
DLE
EA
ST
on SITE iMg wOrldS Of advENTurE
“ThERE will noT BE A PhASE i, PhASE ii oR PhASE iii oPEninG. All ThE RidES, ATTRAcTionS, food And BEVERAGE ouTlETS, All of ThEM will oPEn whEn ThE dooRS oPEn”
Page, the vice president – Marketing, for
the Ilyas and Mustafa Galadari Group.
“The park comprises of four different
zones, with the largest zone being
Disney’s Marvel brand, which is 32,516m2.
The second largest element is the Lost
Valley, which is 25,083m2. The third
largest is the Cartoon Network Zone,
which is 21,367m2. The last zone is the
IMG Boulevard, which is 18,580m2.”
Covering a total of 139,354m2, the
IMG Worlds of Adventure is a huge
development that aims to attract the
millions of tourists that pass through
Dubai every year.
“There are no theme parks in Dubai,
so that in itself makes this a massively
demanded entity,” Page says. “With the
infrastructure we’re building around
City of Arabia, you’re talking about a
location that’s 25 minutes from the
airport that is 15 minutes from Dubai
Marina, 10 minutes from Dubai Mall,
and surrounded by (projects like) The
Villa, Falcon City, Arabian Ranches, Al
Barawi and the heart of Dubailand. It’s an
upcoming area, so for us it’s a very unique
proposition to be in,” he tells Big Project ME during a tour of the park site.
“We’ve now signed up some of the best
intellectual properties that can be done
for this sort of arena. We have Cartoon
Network’s first theme park property,
Marvel, who have done it before in other
Disney areas, the Lost Valley, with is
our own intellectual property, and IMG
Boulevard, which is the entertainment
neutral zone that separates the different
zones out and is also somewhere where
people can relax and have a sort of
neutral experience in a vibrant setting,”
Alexander explains.
Each zone will have its own elements
and attractions, he adds, with rides for
both young kids and whole families. These
will include roller coasters or ‘dark rides’,
which are enclosed rides. Inside each
zone will be retail and beverage outlets,
along with the rides and attractions.
“The reason we’re calling it Worlds of
Adventure, is because we almost have four
different parks in one, with the concept
being that we can give guests circulation
of all the zones in one visit,” says Page.
With a scheduled opening date in 2014,
there remains a lot of work to be done,
he concedes. However, Page remains
confident that the schedule would be
kept, and that all the park’s elements will
open as one.
“There will not be a Phase I, Phase
II or Phase III opening. All the rides,
attractions, food and beverage outlets, all
of them will open when the doors open,”
he insists.
“The space frame is due to be finished,
it covers the entire roofing structure of
the park. It is scheduled to be finished
within the next eight to ten weeks and that
is obviously a huge movement forward.
What’s interesting is that the content for
the park is also being manufactured off
site,” Page explains.
“There is a huge amount of work
happening on a global scale, we’re
dealing with specialist suppliers, ride
makers, vendors and so on, with different
parts being done. The intention is that
they will be brought in by the end of this
year, for a full installation in the park.”
park figures
n 139,354m2 Total size of the IMG world of adventure project
n 32,516m2 Size of the Marvel Zone
n 25,083m2 Size of the lost valley
n 21,367m2 Size of the cartoon network Zone
coMinG ATTRAcTionThe park will complete in 2014 with no further phases planned.
kEy locATionThe theme park is within half an hour of key areas of Dubai.
42 SEPTEMBER 2013MID
DLE
EA
ST
ON SITE IMG Worlds of Adventure bigprojectMe.coM
With this in mind, Page says that that
the owners were mindful to work with
some of the best people in the theme park
industry, so as to ensure that IMG Worlds
of Adventure measures up to any rival in
the world.
“We have some of the leading people
in the industry working for our group,
to make sure that the processes and the
timelines on those elements are followed,”
he explains. “Obviously health and safety
are our priority, so we need to make sure
that everything is done to the best ability
possible. The process of working with the
IPs is a very close one.”
“We have a very fluid transparency with
them, our design agency, who helped
design the park, hand in hand with Ilyas
and Mustafa, and obviously our architects
as well, report and work with us and the
IPs themselves,” he asserts.
With that in mind, the American
creative services firm, Falcon’s Treehouse,
was brought in to be design partners for
the park.
As such, they’ve worked with both the
Ilyas and Mustafa Galadari Group and
the other intellectual property owners, to
pick and choose what goes into the IMG
Worlds of Adventure.
“The vision and direction obviously
comes from Ilyas and Mustafa. What we
have here, and I can’t disclose too much,
but we have an amazing mix of rides and
attractions, even within each zone, and
that makes me very confident that when
the park opens, it will sell itself, because
it really is a great offering to the public,’
Page says.
So confident are the developers that
they’ve already allocated space for the
future expansion of the park, he adds.
“The theme park has obviously been
designed with future plans in mind, in
terms of expansion zones within the park,
so there will be areas that can expand in
the future, each zone, each area.”
“The theme park and the development
are also phased to grow and expand as
time goes on. However, the first part of the
puzzle to reinvigorate the development is
the theme park,” Page asserts as the tour
of draws to a close.
“I personally think from a travel and
trade perspective, with the amount that’s
on offer in this area alone, along with the
housing developments and the Dubai
Autodrome, along with the up and coming
developments, it’s a very key development
(for Dubai),” he concludes. n
“ThERE iS A huGE AMounT of woRk hAPPEn-inG on A GloBAl ScAlE, wE’RE dEAlinG wiTh SPEciAliST SuPPliERS, RidE MAkERS, VEndoRS And So on, wiTh diffEREnT PARTS BEinG donE”
img worlds of adVenture components:
iMg BoulevarD
The welcome zone of the park, with an
entertainment area focused on leisure and
fun based activities. The IMG Boulevard
spans across 18,580m2 and is the central
zone providing access to the other three
zones that comprise the makeup of IMG
worlds of adventure.
Marvel ZoNe:
The ground-breaking ceremony for
MaRvEl Zone took place in june 2012.
It will offer a range of ‘key entertainment
experiences’ from renowned Super Hero
Icons from the MaRvEl universe including
Spider-Man, The Hulk, Iron Man, Thor and
The avengers. The zone will also feature
retail outlets and dining facilities.
carTooN NeTwork ZoNe:
The ground-breaking ceremony for
cartoon network Zone took place in Feb
2013. The zone will deliver a number
of world firsts including the world’s first
themed attractions such as; The amazing
world of Gumball, adventure Time, and
lazyTown. The cn Zone will also feature
the world’s largest Ben 10 retail store and
the first ever Ben 10 5d ride, along with
branded restaurants and other branded
immersive experiences
The losT valley ZoNe
The ground-breaking ceremony for lost
valley took place in april 2013. The lost
valley Zone will aim to bring the pre-
historic kingdom of dinosaurs back to life
through rides and attractions including
animatronic dinosaurs and sound and
light technology, along with multiple other
attractions in the zone.
44 SEPTEMBER 2013MID
DLE
EA
ST
QuanTITy SurvEyOrS BigproJecTMe.COM
45SEPTEMBER 2013 MID
DLE
EA
ST
QuanTITy SurvEyOrS
arguably, when one constructs
a building of any size, the most
important factor to consider, above
the design, planning or even the build
process, is the cost of the project and the
budget available to contractors.
These controls and checks need to be in
place to ensure that a project is completed
at a reasonable cost to a developer or
client, and that there are funds available for
the duration of the construction process,
from inception to completion.
As such, one of the most important and
necessary roles on a construction project is
that of a quantity surveyor. While the role
is by no means a new one, there persists a
few common misconceptions in the GCC
market that limit the ability of a quantity
surveyor to be able to bring about a wholly
positive impact on a project.
Traditionally expected to provide
approximate estimates and cost planning
to clients, quantity surveyors operating
in the region tend only to be called on a
project only when clients decide that they
need their services. This attitude is often
a source of much frustration for the QS
industry, given that it has so much more
to offer the market.
“I think clients have got this
conception of a quantity surveyor doing
building quantities and cost estimates
and so on. That’s when they tend to
employ them, when there is a need
for their services” says Azar Ul-Haq,
associate director – Commercial Services
for Faithful + Gould Middle East and
India, and a quantity surveyor with more
than 15 years of experience.
“What we’re trying to do is to get the
client to engage the quantity surveyor in
the early stages (of a project) and then be
provided with the full service, assisting
them from inception to completion.”
Ul-Haq points out that Faithful + Gould
has been providing added value services
for a long time now, and that there are
services that the firm is providing clients
with on regular basis. For instance, he
says, dispute management is becoming
very popular at the moment, spurred on
by all the problems of the financial crisis
and all the claims from the contractors
and so forth.
“Previously, it was a service that we were
providing and it was popular,” he explains.
“But now due to the financial crisis,
we’re noticing a greater involvement with
“wE’RE TRyinG To GET ThE cliEnT To EnGAGE ThE quAnTiTy SuRVEyoR in ThE EARly STAGES”
Big Project ME talks to quantity surveyors to find out how their evolving role in the construction industry could bring about a change in perceptions
ChaNgiNg pErCEpTiONS
46 SEPTEMBER 2013MID
DLE
EA
ST
QUantity SURVEYORS bigprojectMe.cOm
clients, both from the private sector and
the contracting sector, to get involved and
resolve some of the disputes that have
been hanging around for a long time. I
think it’s going to become more popular
as well. Not only in the UAE, but also in
Saudi Arabia and Qatar.”
However, one of the main challenges
that quantity surveyors still face is a basic
lack of understanding of what they offer,
says James Costello, director of Cost
Consultancy for the Sweett Group MENA.
“There are instances where there
is often an underlying reluctance
from contractors to adhere to their
administrative responsibilities under the
conditions of contract relating to time and
cost. This has often led to major issues
with claims, variations and payments,
and presents challenges when trying
to perform our services effectively,” he
explains to Big Project ME.
“The reason for this, we have found, is
generally a basic lack of understanding
of the implemented contract, and more
specifically that it is for all parties’
mutual benefit to adhere to the terms
and conditions stated. Our approach
under these circumstances is to clearly
“wE’RE noTicinG A GREATER inVolVEMEnT wiTh cliEnTS, BoTh fRoM ThE PRiVATE SEcToR And ThE conTRAcTinG SEcToR”
set out the contractor’s obligations and
requirements under the contract at
each stage and work with the contractor
through every stage of delivery,” he says.
“This process of collaboration results
in a reduction of misunderstandings and
conflicts that would otherwise escalate
into claims.”
While Clive De Villiers, vice
president of the Cost and Quantity
Surveying Division at KEO International
Consultants, does agree that clients in
the region are starting to become more
understanding about what quantity
surveyors can offer them, he points out
that this can bring its own pressures to the
role as well.
“The major change of the quantity
surveyor role is that there is a demand, or
an anticipation, to provide cost data which
is far more accurate, coupled with the
provision of financial modelling for certain
clients to help them with their decision
making process,” De Villiers explains.
“Certain clients certainly require far
more verification of the amounts/values
and they question QS’s a lot more about
verifying all such data. This is one of the
biggest changes we’ve found since the end
of 2008 or the beginning of 2009.”
Another challenge that he points out is
quantity surveyors now have to deal with
forecasting escalation, a situation that
has been amplified by the current global
financial climate.
“One of the challenges is forecasting
escalation, which is particularly true in
Qatar, with all the workload that’s forecast
and the debates as to what level escalation
will peak,” he says. “During the height of
2008, escalation peaked at 2% per month.
Of course, if that happens now, then
people would be extremely concerned.
So, the issue of escalation is a challenge
and everybody’s got a different opinion or
different idea (of how to deal with it).” he
points out.
In order to ensure that clients
understand that what their quantity
surveyors can offer them, companies are
now striving to educate their clients of
the benefits, services and possibilities
that are on offer.
Both Clive De Villiers and Azar Ul-Haq
say that they insist on being present
throughout every stage of the project,
top 5 Qs firms in tHe world by Value of work (july 2013)
n ec harris $1.02 billion
n aecom $319.3 million
n faithful + gould $54.4 million
n rex procter $53.5 million
n gardiner & Theobald $43.3 million
chAnGinG RolESQuantity surveyors now face increased demands from clients.
48 SEPTEMBER 2013MID
DLE
EA
ST
QUantity SURVEYORS bigprojectMe.cOm
so as to ensure that their clients have
complete awareness of any decision
being made.
“It’s always about education,” says De
Villiers, “For example, we’ve been keeping
track of the pricing of major primary
materials, for example steel rebar, copper
and aluminium. In the case of the former
two, they have a dramatic impact on the
construction cost of any project. We’ve
been tracking those since 2006 and you
get a sense of the way those costs have
gone and what we’re trying to do is use
those bases to forecast the future.”
“During the mid-2000s, the market
was extremely flooded with work
opportunities. But now that we’ve
reached a more “normal type of market”,
it’s probably unlikely that you’ll see the
extreme escalation that you’ve seen
earlier. And doing a check on how the
pricing has gone in the past two or three
years, you can sort of predict that it’s not
something that’s going to jump drastically
this year or the next year. So it’s about
providing that sort of information to them
and using other sources like MEED and
other available data. You have to talk to
the clients and make sure they understand
you,” he asserts.
Azar Ul-Haq concurs very strongly with
this sentiment, telling Big Project ME that by getting involved at an early stage,
a quantity surveyor can not only help
establish the budget, but also help clients
with their procurement strategies.
“Gaining value for money depends on
the strategies adopted. We can provide
advice and expertise in those strategies
in order to minimise any problems later
on in the project. We also provide value
for money at the end of the project as
well, towards the final accounting and the
defects liability,” he explains. “Hopefully
there shouldn’t be, but as we all know that
there are problems at the later stages of
the project when these items need to be
closed out.”
“It’s about adequate design
management. Making sure that we’re
actively involved in the project team. We
get involved in all the design meetings
and any changes in design, to educate
the client that any change in design may
reflect quite largely in the costs,” he says.
“We provide cost advice during
these meetings, so that designers can
actually design to cost. And also, in
the procurement of materials, and the
selection of materials and alternatives, so
that we can manage that as well.”
James Costello adds that the
implementaion of active cost control
during the pre and post construction
phases is vital, citing two key reasons as to
why this is so:
“Firstly, involvement of the cost
manager at the outset of the project
AzAR ul-hAq
cliVE dE VilliERS
Quantity surVeyor duties and responsibilities
n preperation of Bills and Schedules of Quantities of materials
n visit building sites to monitor progress
n prepare tender and contract documents
n undertake cost analysis for project work
nassist in establishing a client’s requirements
n perform risk and value management
MARkET REAdERSQuantity Surveyors are able to predict and inform their clients about changing market trends.
LIVEDE
MONST
RATIO
NS
16-20 February 2014
Dhahran International Exhibition Center,Dammam - Kingdom of Saudi Arabia
Show timings: 9:30-12:00 and 16:00-22:00
DAMMAM
CMShowAD_Sept_Left_v1(outlined).indd 1 9/4/13 3:38 PM
50 SEPTEMBER 2013MID
DLE
EA
ST
QUantity SURVEYORS bigprojectMe.cOm
Sweett Group has acquired the Thailand-
based quantity surveyor, Boulter Stewart,
to grow its operations in asia.
a leading quantity surveying consultant,
Boulter Stewart provides quantity
surveying, contract administration, project
financial services, due diligence and
dispute resolution services.
Established in 1997, the Bangkok based
consultantcy focuses on the industrial,
commercial, hotel and leisure sectors.
over the last five years, Sweett Group’s
Thailand office, acting as project
managers, and Boulter Stewart, acting
as quantity surveyors, have conducted a
strategic alliance collaborating on joint
delivery of several commissions for clients
including Merlin Entertainments, Bank of
america and kingdom Properties.
“By combining the QS expertise and
local knowledge of Boulter Stewart with
our established Sweett Group Project
Management business under South asia
Managing director andrew wigg and
Thailand director Ben Sedgewick, we
are creating a diversified and flexible
consultancy, specifically targeted at the
requirements of our local and international
clients operating in the Thai market. This is
very much in line with our current business
plan which focuses on the twin benefits
of coverage across asian hub cities and
service diversification,” explained kim
Berry, asia Pacific managing director of
Sweett Group.
when key decisions are made which
fundamentally shape how the scheme
develops through design.”
“The cost manager can bring expert
advice at this stage which can both
improve the value of the project and avoid
implementation of aspects of design
which may become hugely costly and
difficult to change later due to pressure to
continue on programme,” he outlines.
“The second key factor is the skill,
experience and quality of your cost
manager, together with commitment
of time and resource. Without this
combination a client may never realise the
added value and cost savings that could be
driven into their project and end up simply
with a reactive, cost reporting ‘messenger’.”
“During the post-contract phase, it
is also important to implement rigid
communication procedures, and to
ensure that a regular dialogue between
the client, consultants and the contractor
is maintained in order to identify potential
changes or problems which may impact
the project.”
“If such issues are detected at an early
enough stage, they can be addressed
and preventative measures taken where
possible,” Costello clarifies.
By taking a proactive stance like this,
quantity surveyors say that they can
ensure they get the right contractors on
board during the tendering process. In
turn, this will help ensure that clients get
value for their money.
“We can prequalify and provide tender
documents to subcontractors and then
evaluation of submitted bids to give to
clients for value for money,” says Ul-Haq.
“We also look at the reputation of
subcontractors. We work with a lot of
contractors and subcontractors, so we
know what they’re capable of. It’s sad to
admit, but there are subcontractors which
clients don’t really want to work with,
they’ve had bad experiences previously.
We can benchmark them and categorise
them and make sure that clients aren’t
subjected to them,” he adds.
During the construction phase,
quantity surveyors also have a role to play,
in terms of being able to keep a check on
any revisions that take place to the design,
and advising the client about the cost of
the changes. Ultimately, it comes down to
the relationship between client and QS.
“We are seeing the early signs of a
return of cost management services
being tendered directly by the client.
This is a clear indication that developers
are looking for independent advice to
optimise the value of the investment,”
Costello says, perhaps optimistically. n
Geberit concealed cisterns
With the tried-and-tested Geberit installation tech-nology, cisterns and piping can be securely located behind the wall. This makes the bathroom larger.And a lot more attractive.
→ www.geberit.ae
← Geberit installation element with concealed cistern
Hidden inno- vation.
52 SEPTEMBER 2013MID
DLE
EA
ST
QS prOfilE BigproJecTMe.COM
ThE SwEETT grOupGlobal property and infrastructure consultancy outlines how it manages the costs associated with delivering projects in the built environment
from building the tallest tower in
Riyadh to major hotels and resorts in
the UAE to expanding Hong Kong’s
mass-transit network to delivering
some of the UK’s most popular retail and
leisure destinations, the Sweett Group
portfolio is vast and covers a diversified
range of sectors.
The group advises clients worldwide
on cost prediction, cost planning,
cost management, value for money,
procurement strategy and delivery issues.
The consultancy also has a leading
track record in sustainability having
published research on ways to reduce
the carbon footprint of both existing
operational assets and buildings under
development with proven long-term
commercial and environmental benefits.
whaT’s Their secreT? “We employ the best talent the industry
has to offer, individuals who are aligned
with our organisational values and
demonstrate a professionalism that our
clients have come to expect from us. In
cost management, we align ourselves with
the Royal Institute of Chartered Surveyors
(RICS) being the industry benchmark for
quality in the profession. We have a strong
commitment towards ensuring all our
staff is RICS qualified or are progressing
towards full membership,” says James
Costello, director of Cost Consultancy.
The sweeTT approach“We align ourselves with our clients’
objectives. At the outset we engage
with our clients to define the project’s
aspirations and work collaboratively with
them to optimise their capital investments
while retaining the design intent, integrity
and overall project value,” says Costello.
The same ethos extends throughout
the life cycle of a project and includes
engaging the main contractor during the
construction phase.
Sweett Group’s people pride
themselves on implementing good
working practices, transparent procedures
and agreements that cultivate a
relationship of mutual trust, cooperation
and yield effective results, earning the
Group its hard won reputation. n
cost management serVices
n feasibility and Master planning
n cost Planning
n procurement and contract advice
n value Engineering
n risk advice
n post contract cost control
“wE AliGn ouRSElVES wiTh ouR cliEnTS’ oBjEcTiVES”
Organised byYour Contacts
UAE Office Matthew ROBARTS+971 4 4356101 [email protected]
France Office Asmaa CHERRAF+33 (0)1 76 77 12 08 [email protected]
www.intermatme.com#intermatmeBLOG
3rdSESSION
Attachments, Components, Accessories & Spare PartsBuilding Material ProductionBuilding & Construction MachineryConcrete, Concrete Production & Concrete ProductsConstruction MaterialsConstruction ServicesHealth & Safety
Heavy Machinery & EquipmentLifting & Elevation MachineryQuarrying, Mining & AggregatesRental CompaniesRoads & Transport Infrastructure MachineryScaffolding & FormworkSite Equipment & ProductsTechnology
EXHIBITORS Include-
54 SEPTEMBER 2013MID
DLE
EA
ST
MaRkET aNalySiS BigproJecTMe.COM
55SEPTEMBER 2013 MID
DLE
EA
ST
MaRkET aNalySiS
big Project ME has spent much
time debating whether the boom is
returning to Dubai. Whether it is or
not a capitalist market relies on two
features: supply and demand.
The simplest form of this phenomenon
is the man who has an ice cream van in a
European summer. He has to buy upfront
without knowing the weather, if it’s hot
he sells out and if not he has a lot of ice
cream left.
Andy Grove, head of Intel, once wrote
a book which warned that every manager
must expect everything to change – and
very soon.
In the Middle East, local and western
contractors are fighting companies from
China, Korea and to a lesser degree India
for contracts. However in East Africa
they, especially the Chinese, are the
dominant forces in a rapidly expanding
construction market.
East Africa’s construction market is
predicted to be a major growth sector
over the coming years, and it seems to be
a closely guarded secret. The 19-country
region – the largest in terms of number
of states on the continent – is led by both
Ethiopia and Tanzania.
In Tanzania activities in the
construction sector have grown at
an annual rate of eight percent over
the past five years. For the Tanzanian
economy to grow, it needs developed
transport infrastructure like roads,
bridges and railways, as well as efficient
telecommunication networks.
And who is reaping the benefit of
this need and government spending? A
recent BBC report stated: ‘Throughout
Africa – at building sites, on the street,
and at ports and airports – the Chinese
presence is growing.’
Big Project ME recently ran an article
about how cheap government finance was
helping Korean construction companies
to grow. Similarily, the Chinese
government is helping their companies to
win contracts in East Africa.
The campus of Nairobi University is
a good example of this. Workers from
“indiAn coMPAniES do ThE RiSk ASSESSMEnT in A MoRE SySTEMATic MAnnER. ThE chinESE juMP uPon ThE woRk And do iT VERy fAST – And ThEy GET ThE RESulT”
Big Project ME looks at the booming East Africa construction market and the domination of Chinese contractors
whaT arE ThE ChiNESE dOiNg iN
afriCa?
56 SEPTEMBER 2013MID
DLE
EA
ST
MARKET ANALYSIS bigprojectMe.com
the China Wu Yi company are building a
futuristic 21-storey tower, complete with
lecture halls, for up to 3,000 students.
“Once it is finished in two years, this
building will be the tallest structure
around,” says Professor Sa Dequan, head
of the university’s Chinese language and
cultural teaching centre.
China Wu Yi was helped by the Chinese
government to gain access to Kenya, but
now it is handling 18 projects here. Not
long ago, it completed a section of the
eight-lane, 50km Thika Superhighway,
described as Kenya’s pride.
This kind of push by the Chinese
government, say Indian companies, is
helping their neighbour to steal a march
on them.
The Chinese are in competition with
the Indian contractors for most of this
work. With demand for resources to fuel
both their growing economies, the contest
between these two giants is playing out in
different parts of the world.
If you want a picture of how the
Chinese work it is also good to hear what
the competitors think: “Indians have been
“chinA foR ThE PAST ThREE dEcAdES hAS BEEn inVESTinG in AfRicA And incREASinG iTS BilATERAl And TRAdE RElATionShiP wiTh AfRicAn GoVERnMEnTS”
in Kenya and this continent for more than
200 years. Why have they not developed
the industry like the Chinese have done
in the last 10 to 15 years?” asks Kenyan-
born businessman Muljibhai Pindolia, of
Indian descent.
He says the reason lies with the active
involvement of Beijing.
“With our own resources, we cannot
develop the way those with government
support can.”
Ethiopian Industry Minister Tadesse
Haile agrees: “I urge Indian financial
institutions to support Indian businesses,
as other countries like China are doing.”
And according to Manoj Gupta Jindal
of Steel and Power in Mozambique there
is a huge difference in the approach to
the work: “Indian companies do the risk
assessment in a more systematic manner,
whereas the Chinese just jump upon the
work and they do it very fast – and they get
the result.”
Chinese companies are active across
the continent with big infrastructure
projects, including ports, railways and
sports stadiums.
By contrast, Indian initiatives are led by
individual companies looking to expand
in sectors such as telecoms, agriculture,
the automotive industry and education.
India’s $65 billion of trade with Africa is
dwarfed by China’s $200 billion.
China insists it is looking at a
wholesome, reciprocal relationship with
East Africa. In Nairobi, Xia Lu, of Kenya
China Travels and Tours, says: “The
number of Chinese tourists coming to
Africa is growing by 45% each year.”
But the Chinese presence has also
raised questions. “The Chinese come
with their own people, leaving the locals
in the lurch,” a man outside a Nairobi
office complains.
Asked about such concerns, Xiong
Kaihua, of China Wu Yi, insists his
company has hired locals to do the work,
although he does not know how other
companies behave.
“We have seen in Tanzania illegal
immigrants from China being deported.
We have seen that in Ghana too,” says
Nairobi journalist Mark Kapchanga.
In June this year, Ghanaian authorities
arrested 168 Chinese for illegal gold
mining while Gabon plans to recover
indiAn iniTiATiVESIndividual companies are leading India’s push in Eastern Africa.
cHina’s african infrastructure support
n $40.83 billion value of construction contracts completed by chinese firms in 2012
n 45% Percentage increase from 2009
n $11.3 billion concessional loans approved by china between 2010 and May 2012
n 92 number of african projects granted loans
57SEPTEMBER 2013 MID
DLE
EA
ST
MARKET ANALYSIS
assets from a subsidiary of Chinese oil
giant Sinopec.
There is a growing wave of resentment
across Africa against Beijing. Lamido
Sanusi, Nigeria’s central bank governor,
spoke out against Chinese exploitation of
Africa and its vast resources, and warned
that Africa “is opening itself up to a new
form of imperialism.”
In a scathing commentary he
cautioned: “China takes from us primary
goods and sells us manufactured ones.
This was also the essence of colonialism.”
Nairobi-based analyst Anil Bhandari
says the African pie is too big for anyone
to fret about: “Most African countries are
growing at 7% to 9%. Players like India,
China, Brazil and the European countries
have a role to play.”
The Confederation of Tanzania
Industries (CTI) Director of Policy and
Research Hussein Kamote said recently:
“There is a direct relationship between
the construction sector and the growth
of national income which is also a sign
of improved living standards.”
The Chinese have a strong economy
and like to gamble, and they can afford
to. Traditionally corporate environments
require predictability, which historically
hasn’t been one of Africa’s strongest
characteristics; but analyse the
continent’s progress over the past decade
and there is cause for optimism.
In fact, regional “pockets of excellence”
have emerged where significant
investments can be made with both
predictability and confidence.
Scott Firsing is Head of International
Studies at Monash University in South
Africa. He thinks that the USA is missing
out big time in opportunities in Africa.
“China for the past three decades have
been investing in Africa and increasing
its bilateral and trade relationship with
African governments. It has played
a fundamental role in helping Africa
achieve social betterment, economic
growth and development, especially in
the infrastructure sector.”
According to Firsing, in 2012 China’s
trade with African was almost double that
of America and this made the White House
realise that it is missing out in Africa.
“These opportunities won’t last
forever,” he noted.
It would be fair to say that Africa has not
always come out of every trade deal ahead.
Its history is largely one of exploitation.
One of the finest observations of this
came from Bishop Desmond Tutu.
“When the missionaries came to Africa
they had the Bible and we had the land.
They said ‘Let us pray.’ We closed our
eyes. When we opened them we had the
Bible and they had the land,” he said, in a
sombre warning to the continent. n
trouble in africa
disputes, extortion and kidnappings
continue to blight african countries trying
to develop. construction in nigeria and
Sudan has been under scrutiny this year
as the continent’s attempt to develop its
infrastructure continues to be blighted by
violence and distrust.
In nigeria seven foreign contractors were
executed after being kidnapped while
working for construction firm Setraco in the
nigerian town of jama’are.
They had been taken following an assault
on the construction company’s compound
in February with the group claiming they
were taken in retaliation for British forces
being spotted in the air over the region.
The British Foreign office later claimed the
aircraft had been ferrying troops for aid
in Mali.
The head of the nigerian Federation
of construction Industry Solomon
ogunbusola claimed the attacks on
foreign contractors was threatening to de-
rail the construction industry in the country.
“MoST AfRicAn counTRiES ARE GRowinG AT 7% To 9%. PlAyERS likE indiA, chinA, BRAzil And ThE EuRoPEAn counTRiES hAVE A RolE To PlAy”
GET YOUR FREE VISITOR PASS and save AED 100 by registering online on www.thebig5.ae/bp11
www.thebig5.ae
OfficialBroadcast Partner
8 DEDICATED PRODUCT ZONES
Diamond Sponsor Platinum Sponsor Gold Sponsors Silver Sponsor Free Zone Partner Organised by
C
M
Y
CM
MY
CY
CMY
K
00509_Big5_Dubai_2013_Vispromo_Big_Project_ME_DPS_Ad_448x280mm.ai 1 8/6/13 11:00 AM
GET YOUR FREE VISITOR PASS and save AED 100 by registering online on www.thebig5.ae/bp11
www.thebig5.ae
OfficialBroadcast Partner
8 DEDICATED PRODUCT ZONES
Diamond Sponsor Platinum Sponsor Gold Sponsors Silver Sponsor Free Zone Partner Organised by
C
M
Y
CM
MY
CY
CMY
K
00509_Big5_Dubai_2013_Vispromo_Big_Project_ME_DPS_Ad_448x280mm.ai 1 8/6/13 11:00 AM
60 SEPTEMBER 2013MID
DLE
EA
ST
SPECIAL FEATURE FM bigprojectMe.coM
as you wander around the towering
skyscrapers of Dubai Marina or
the glitzy boulevards of Downtown
Dubai, it’s easy to forget just how
rapidly the city has changed in the span of
two decades.
Long-term residents of the emirate
remain slightly bemused when they think
back to when the Dubai World Trade
Centre, now dwarfed on Sheikh Zayed
Road, was the tallest structure in the Arab
World, until the Burj Al Arab was built.
As Dubai marched into the future, the
emirate continues to rack up record after
record, from the world’s tallest hotel, to
the world’s tallest building, to what is
now being proposed as the world’s tallest
commercial tower. Along the way, its feats
of engineering and construction marked
it out as a special place to be if you were a
construction industry professional.
So fast was the pace of development
in the city, it seemed that the developers
and contractors building them did not
pause to think about what happened after
the towers were built and completed.
What did happen was that it soon became
apparent that no one actually knew how
to maintain these complex and highly
technical structures.
Hugh Henderson, director of
Consultancy at Mace Macro International
Limited, the FM arm of the worldwide
giant, Mace Group, says that there was
a lot of ignorance as to what facilities
management was all about when Macro
first entered the UAE market in 2007.
“We see a lot happening in the region
and facilities management is growing in
significance. The market is huge, if you
see the numbers that are bandied about.
But it’s a matter of understanding what
facilities management is. Some people
think that facilities management is like
MEP. But it’s not so simple,” he tells Big
MadE TO MEaSurEBig Project ME finds out how the FM industry in the UAE is evolving to measure up to a market that is becoming increasingly aware of the benefits it can bring to their projects
“wE SEE A loT hAPPEninG in ThE REGion And fAciliTiES MAnAGEMEnT iS GRowinG in SiG-nificAncE. ThE MARkET iS huGE, if you SEE ThE nuMBERS ThAT ARE BAndiEd ABouT”
61SEPTEMBER 2013 MID
DLE
EA
ST
SPECIAL FEATURE FM
“wE PREfER To GET inVolVEd RiGhT AT ThE START, BEcAuSE ThAT wAy wE cAn MAkE A diffEREncE All ThE wAy ThRouGh”
Project ME during an interview at Macro’s
Sheikh Zayed Road headquarters.
“I think you’re now seeing a better
understanding of what FM is about, but
there is still a huge chunk of the market
that thinks FM is about cleaning and MEP
and service delivery.”
As disconcerting as this is, given the
progress that has been made, Henderson
remains optimistic about the growing
awareness in the market, especially in the
wake of the collapse of Dubai’s real estate
market a few years ago.
“Demand is a little bit more discerning
now. Clients are more informed, they’ve
learnt a lot over the last five years,” he
says. “They’re now asking more probing
questions and they want to get more for
their money.
“I think generally the clients have
recruited a good core of in-house experts,
so they’ve got a clear idea of what they
want. They might not be too sure of
the direction and they may have some
concrete objectives that they need to
meet, but in terms of the actual buildings,
developments or properties, they know
that they want to get FM involved and
quite often they want to get FM involved
early days, especially if it’s a new project,”
Henderson explains.
This push for early involvement is
something that Steve Bartley, facilities
management and technology director
at Serco Middle East, thinks has been a
long time coming in the GCC region. With
FM becoming more than just a provision
of services, clients are now looking for
FM providers who are experienced and
knowledgeable enough to take a problem
off their hands so that they can go back to
their core business.
“We talk about all the efficiencies we
can make when we come in, but to be
honest, they’re probably limited because
the asset and its shape and its feel, is all
done and we have to work with the tools
that we have,” he says. “We find that the
real savings, the long-term savings, is if we
come in at the early stages and work with
the architects and designers.”
“We appreciate that there needs to be
aesthetics and that there is a dream, a
vision, behind these facilities, but we can
work with the designers to say, ‘how about
if you change this and change that?’ Its
simple things,” Bartley adds, pointing out
FM firms come thinking as an operator
rather than a designer or an architect, and
thereby helping increase the building’s
functionality.
“The real long-term savings for a project
is truly about bringing the real value
that we think we can bring when you’re
building the building, which will totally
and utterly reduce the maintenance costs
for the life of the building.”
Henderson adds that he’s seen many
instances where the early involvement of
FM has paid off handsomely for the client,
leading to better designed and longer
lasting buildings. In addition, by being
brought in early on the project, the FM firm
has a stockpile of data and information that
is vital to the future smooth operation of
the building or facility.
“We prefer to get involved right at the
start, because that way we can make a
difference all the way through,” he says.
“We look at it from the lifecycle perspective,
because the developer’s priority may
be slightly different to the owner or the
operator, the occupants, whatever. We
tend to look at it from the holistic view
serco 2013 Half year results
n $3.96 billion adjusted revenue - ongoing activities
n $3.28 billion Revenue
n $227.8 million adjusted operating profit – ongoing activities
n $194.5 million operating profit
62 AuGuST 2013MID
DLE
EA
ST
SPEcIal FEaTuRE biM BigproJecTMe.COM
over the life of the building. In 20 or 30
years’ time, if somebody’s still got to
maintain that building, their priorities will
still be the same. They’ll want the same
secure building that they can manage
cost effectively, it supports them in their
business, because ultimately, the owner
wants his return on investment.”
“The real long-term savings for
a project is truly about bringing the
real value that we think we can bring
when you’re building the building
that will totally and utterly reduce the
maintenance costs for the life of the
building,” Steve Bartley adds.
“I think before they used to build
buildings to last 20 years and then just
knock them down and not worry about
the maintenance. I think in this part of the
world, they’ve now accepted that they can
build a building and make it last for a 100
years. If you lie it right and look after it, it
can last for 100 years. That has definitely
changed, and it shows they are thinking
about getting FM operators in at the early
stages of construction,” he explains.
Furthermore, there is now significant
progress being made when it comes to
adoption of technology in the FM industry.
While this has been somewhat of an
accepted practice in the West, for the most
part, clients and FM providers have been
content to stick to tried and true methods.
Henderson says that this is something
Macro are keen to educate their clients
about. Given that BIM has been adopted
by architects, consultants and contractors,
he feels that it is now time for FM
professionals to adopt and adapt the
technology for their own uses.
“We’ve used technology in terms of
the way we manage our buildings, we’ve
been doing that for quite a while. But the
technology is evolving all the time. Now,
I guess from the big project perspective,
“qATAR And ABu dhABi hAVE lEARnT A loT fRoM duBAi. ThEy’RE MoRE cAuTiouS, MoRE diScERninG, MoRE MEASuREd in ThEiR APPRoAch. duBAi TAkES A VERy BulliSh, oPTiMiSTic, ‘Go And do iT’ ATTiTudE”
huGh hEndERSon
TRiEd And TESTEdFM providers in the region have been content to stick with what they know.
STEVE BARTlEy
63SEPTEMBER 2013 MID
DLE
EA
ST
SPECIAL FEATURE FM
there is BIM, and that, I would say it’s still
in its infancy from the FM perspective.”
“It’s certainly been adopted by
architects and contractors, but in terms
of its adoption by FM, it’s still early days.
Without a doubt, it’s got a lot of use. We
want to understand how the building
works, have the building data from the
very early days, so that the more we buy
into BIM, the more we can understand
it, learn about it and develop. And that’s
happening very rapidly, though it’s still
early days,” Henderson explains.
“(But) it’s not just about BIM. In
terms of FM, it’s always had a strong
base in technology, you’ve got what we
call Computer Aided FM systems out
there, there’s also been maintenance
management systems, procurement
systems, there’s a lot of management
systems out there, but there are now fairly
mature technology-based terms and
systems for FM.”
“We’re a good example of that, we’ve
got asset management systems that
provide the FM data you need and they
also support 24/7 helpdesks that we have
here.”
“Not everybody is as far advanced, but
when you put all those things together
and use mobile technology, handheld
technology, it’s a real boon for the
industry, because we’re able to report real
time, services, managers can see what the
staff are doing, what are the problems,
prioritise what, allocate resources and get
much better value, because that’s what
the clients want,” he asserts.
Bartley adds that while the UAE
remains the clear leader in terms of FM
innovation in the region, the rest of the
GCC is catching up rapidly, which can
only be a good thing for the industry.
“There are clients out there who
understand that (the benefits of early
mace macro projects
n 3,500 government buildings abu dhabi
n National exhibitions company abu dhabi
n Dubai Marina dubai
n old Town dubai
n Jumeirah Beach residences dubai
n skycourts dubai
“in TERMS of fAciliTiES MAnAGEMEnT, iT’S AlwAyS hAd A STRonG BASE in TEchnoloGy. ThERE ARE now fAiRly MATuRE TEchnoloGy-BASEd TERMS And SySTEMS”
involvement and technology). Is it across
the board? I don’t think it’s quite there
yet. There are certain territories that are
more familiar with it and there are others
territories that are catching up, but they’re
catching up fast,” he points out.
“We’re now seeing and having
conversations with both asset owners and
facilities owners and other players in that
market who know they need to mature
and are coming to companies like Serco
to say, ‘can we join up in some way so that
we can learn from you?”
Henderson does concede that there
remain a number of challenges ahead,
especially when it comes to convincing
clients to shell out extra cash up front to
pay for these technologies, but he remains
confident that Dubai will ultimately show
neighbouring markets that it would be
right to go the extra mile in expenditure.
“Qatar and Abu Dhabi have learnt a
lot from Dubai. They’re more cautious,
more discerning, more measured in their
approach. Dubai takes a very bullish,
optimistic, ‘go and do it’ attitude,” he says.
“Qatar and Abu Dhabi take their time,
take stock and do it in a very measured
way. But their ambitions are no less than
Dubai, so they want to get on. So I would
say that they’ve learnt a lot, not just from
Dubai, but internationally. They’ve got
international consultants there, they
know the standards they want and they’ll
go for it.” n
TEchnoloGy BoonFM experts are advocating the adoption of mobile technology to help operations.
64 SEPTEMBER 2013MID
DLE
EA
ST
SPEcIal FEaTuRE faCadES BigproJecTMe.COM
in the beginning it was fairly simple.
You found a cave and lived in it,
ensuring the mouth of the cave was big
enough to let you in and fire fumes out.
Accommodation moved on slightly
during the next few hundred years.
In England windows were kept small
because there was a tax on glass. So the
inside of homes were dark, damp and
cold, partially explaining the English.
Eventually during the Georgian era
in England, from 1714 to 1830, buildings
were used to impress other people rather
than for shelter. This was the birth of the
Paladin mansion and the true beginning
of the façade.
The Georgians made nice square
buildings with big rectangular windows,
high ceilings, graceful rooms and pleasing
perspectives. But then someone had the
idea of slapping a few Doric columns on
the front and the madness began.
There are several examples of buildings
of this period when the façade became the
reason for the building. Think of St Paul’s
Cathedral, Buckingham Palace and even
wander over to India (mentally obviously)
for the Taj Mahal. Versailles in France is
another example.
The twin of the façade is the atrium.
Surprisingly this was a feature of buildings
in Ancient Rome but it fell out of fashion
until the twentieth century.
There is an economy of scale in facades
in the Middle East, and of course in cold
climates such as in New York. In northern
Big Project ME looks at the development of facades in the region
puTTiNg ON a façadE
“ThE fAçAdE of Any BuildinG iS fAR MoRE ThAn iTS AESThETic fAcE – iT fulfillS VARiouS funcTionS, All of EquAl iMPoRTAncE To ThE STRucTuRE AS A wholE”
65SEPTEMBER 2013 MID
DLE
EA
ST
SPEcIal FEaTuRE faCadES
Europe there is an equitable climate,
which means a temperature change of
1oC between summer and winter and the
same temperature outside and inside.
In this region the 20oC temperature
change between exterior and interior
explains the constant colds we suffer, that
we can’t make our European friends believe.
Budget is, or should be, a major factor
in any decision. Chet Atkins, the world’s
best guitar player once said that he
decided to get a guitar-shaped swimming
pool. But having seen the estimate
he decided to get one shaped like an
amplifier (rectangular).
And so we come to the point of the
façade question. How big can it be? How
much heat will it lose and can you clean
it? Will it still operate during the 50oC
summer months?
Those questions are wrapped around
the central theme of any architectural
plan. First question. Do you want the
building to be iconic? Dubai may be
the only city in the world where literally
every building is iconic, and in a city
where there are no addresses every single
building is ‘The Address’. Ironically if
one person actually gave their building
a proper address we could put four
thousand PR ladies and their superlatives
out of business.
Those of you who are reading this
article in the vain hope of actually
garnering any information are about
to be rewarded. We now move onto
the part, which may inform you as well
as hopefully entertaining you. We will
explore the arcane world of heat reflective
façades, shading and ventilation.
American company Foamglas explains:
“The façade of any building is far more
than its aesthetic face – it fulfills various
functions, all of equal importance to the
structure as a whole. Primarily it needs to
protect the fabric of the building from the
effects of weather – cold, heat and rain.
“ThE fAçAdE iTSElf iS dEMATERiAliSEd And TuRnEd inTo An AdVERTiSinG MEdiuM foR SEndinG MESSAGES”
It also plays a key part in sound proofing
the building and providing fire protection.
Thermal protection is, of course, the most
essential performance.”
Their cellular foamed glass and
constitutes of millions of closed, gas
filled glass cells, which provide superior
insulation characteristics. Due to the all
glass cell geometry, the ‘vapour-control
layer’ is already built-in.
As a massive plus this glass has
recycling capabilities as well. But don’t
take this writer’s word for it.
“The most important part is that we
have 66% recycling content and in the
production use only renewable energy,”
explains Middle East sales director Marco
Vincenz, adding: “We do not need water
to produce FoamGlas and it has a very
long durability.”
View inc, based in Milpitas, California,
is developing ‘dynamic glass’ that
changes tint in response to environmental
conditions and user preferences,
controlling the amount of sunlight and
heat in buildings.
Energy consumed by lighting, heating
and air conditioning systems is reduced
by about 20 percent a year in a ’typical
commercial installation.’
The glass tints when an electrical
voltage is applied, it can be programmed
to occur or triggered on-demand by
building occupants with software or
control systems. About 100W of power is
Various types of building facades
n Dynamic Facades
n high-r window and Framest
n Double skin Facades
EnERGy REducTionFacade installations see energy consumption on buildings reduce by 20%.
66 SEPTEMBER 2013MID
DLE
EA
ST
SPECIAL FEATURE FACADES bigprojectMe.Com
used for every 1,000 panes of View’s five-
foot by 10ft glass. The world’s addressable
glass market is about $100 billion,
assuming about 10% of the world’s
windows could use dynamic glass. About
25 billion sq ft of glass a year is installed
globally as external windows.
When you talk about glass you have to
talk about polymer manufacturer Bayer
Material Science. Its polycarbonate sheet,
made of the company’s trademarked
Makrolon, can be used for application on
interior and exterior windows, walls and
ceilings.
The surface provides heat insulation
that is comparable to that of triple glazed
glass, without the weight or bulk of actual
glass, according to the company.
“Transparent Makrolon sheets offer
a similar level of light permeability, plus
they are safer and provide more freedom
of design. That is why they are a good
alternative to glass,” explains Bayer
Material Science global project manager
Dr Volker Benz.
Big Project ME often wonders about
the future of building. Thirty years ago
the movie Blade Runner introduced the
visionary idea of turning entire building
façades into large digital screens. Today
this vision is becoming reality in an
“TRAnSPAREnT MAkRolon ShEETS offER A SiMilAR lEVEl of liGhT PERMEABiliTy, PluS ThEy ARE SAfER And PRoVidE MoRE fREEdoM of dESiGn”
increasing number of cities across the
world. So stand back LG with your 84in
flat screen.
Here is a definition of the term from
author Susanne Fritz: “the façade itself is
dematerialised and turned into one huge
advertising medium for sending messages.
At the onset of dusk the building moves
into the background and serves only as a
backdrop for the light show, which then
becomes the main attraction.”
Using buildings as televisions is a
more difficult idea in this region because
we have so much light and heat. But it
has been done. King’s Road Tower in
Jeddah is one of the largest video screens
in the world, with 10,000square metres
of façade.
One other major consideration is
severely toughened glass. In hurricanes,
tornadoes or bomb attacks a leading
cause of injury and death is often fast-
flying shards of glass.
Explosions and high winds can
cause windows in buildings to shatter,
projecting jagged pieces of glass in every
direction.
This glass could save lives in a lot
of situations. There is also the added
attraction that people in glass houses will
finally be able to throw stones. n
installing tHe world’s largest led façade
The largest working video screen on
the king’s Road Tower in jeddah, Saudi
arabia measures almost 10,000 sqm
and was designed, built and installed
by French company citiled, a world
leader in tailor-made “Media Façade”
projects for integration into architecture.
This technological achievement places
jeddah firmly in the forefront of large-
scale architectural innovation and gives
a dynamic image to this city resolutely
rooted in the future.
citiled was the company chosen
by the project initiators to take up
the technological challenge of this
unprecedented project, in view of its
expertise and their prestigious past
achievements (including the agbar
Tower designed by architect Jean Nouvel
in Barcelona, the hermes Building
in singapore and the cocor luxury
shopping centre in Bucarest).
21 floors on the north and south façades
and 16 floors on the west façade
have been equipped with lEd screens
developed by citiled, totalling 9,850
sqm and comprising more than 5 million
lEds, making the structure the largest
Media Façade in the world installed on an
inhabited building.
it took more than six months to
produce the 10,000sqm of this media
façade, occupying a team of around
20 engineers and craftsmen for three
months during the project design phase
and then six months for installation and
testing.
citiled used patented technology and was
able to develop and implement systems that
are almost transparent when mounted on
the façades, guaranteeing daylight for the
building’s occupants and preserving visibility.
This design is said to demonstrate how
the city will look in the future, a future
where buildings will be interactive with
controlled energy consumption.
iHiB
İSTANBUL HALI İHRACATÇILARI BİRLİĞİ
68 SEPTEMBER 2013MID
DLE
EA
ST
COMMENT ConstruCtion ContraCts bigprojectMe.Com
during the Middle East’s
construction boom, the traditional
tendency towards informal
commercial arrangements and
negotiations often got the job done.
We’ve seen a lot of changes since those
days and a clearer focus on contractual
terms has emerged. The established
business culture is still respected, but
the construction industry is increasingly
adopting common global practices to
protect the interests of all parties.
The FIDIC Red Book remains the
routine standard form of contract, often
chosen through habit and familiarity – yet
there is a widespread lack of understanding
of the contract’s provisions, and a lack of
engagement with its binding properties.
The Red Book is often amended
from its purpose as a re-measureable
contract to a lump sum contract, with
a further increase in the risk placed on
the contractor often by apportioning
of design responsibilities, but with
little thought to amended conditions
contained within or use of an alternative
appropriate form of contract.
Where the Red Book is amended to
lump sum and the employer wishes to
transfer some design obligations to the
contractor: wording often included in the
parts of the specifications and/or drawings
is for the contractor to develop the design
provided into a finished solution, making
a variation and/or claim unecessary for
the development in the scope to meet the
contract requirements.
The problem seems to be a lack of
clear understanding of the priority of
documents and the words and obligations
contained throughout, not just the reading
of the headings of the contract. These
misunderstandings then give rise to
confusion over what are a valid variation
and/or a claim against the contract.
A further common misconception
in the Middle East is that a claim is the
appropriate response to a change or
confirmation of the scope of the work or
a response to a request for information
from the contractor.
For requests for information the
engineer is often only confirming what
the contract allows for, yet this still gives
rise to unwarranted claims against the
contract. However, a claims culture is
time consuming and disruptive and when
Variations in Construction ContractsThe maturing Middle East construction industry has yet to fully adopt best practice around the handling of claims and variations. Faithful + Gould's Steven Batchelor maintains that correctly defining a variation is the first step
STEVEn BATchEloR
“A coMMon MiSconcEPTion in ThE MiddlE EAST iS ThAT A clAiM iS ThE APPRoPRiATE RESPonSE To A chAnGE oR confiRMATion of ThE ScoPE of ThE woRk oR A RESPonSE To A REquEST foR infoRMATion fRoM ThE conTRAcToR”
measured Quantities of Variation may be Valued in accordance witH
n rates containted in the Bills of Quantities or Schedule of Rates
n on the basis of rates analogous to those above
n on the basis of a fair valuation, at fair rates or prices
n at Dayworks rates at the prices ruling at the date of work being carried out
69SEPTEMBER 2013 MID
DLE
EA
ST
COMMENT ConstruCtion ContraCts
a variation order is the correct course of
action for a change in scope. Noting each
and every claim notification must be
responded in specified time frame.
Variations and claims are not the
same and should not be confused. It is
often said that a contractor is claiming
a variation, but this actually means
that they are making an application for
a variation. A claim then only occurs
if the engineer/employer rejects the
application for the variation and the
contractor disagrees with the decision and
subsequently pursues a claim.
A variation to a contract can involve
changes to the contract provisions,
requirements or scope of works. Changes
are made for differing reasons such
as design development, stakeholder
requirements or cost, and can potentially
decrease the scope of works as well as
increase it.
It can also be said that a valid variation
can be evaluated and administered
against the provisions of the contract, with
measurement rules and applicable rates
stated clearly and agreed between the
parties to the contract. Whereas, a claim is
generally for events impacting the contract,
hence the use of industry formulas to
determine any applicable costs for any
valid event causing delay, disruption,
prolongation, loss of profit, etc. The
correct preparation of the contract helps
enormously, with best practice procedures
followed. A weak contract gives rise to
problems, so all clauses and specifications
should be unambiguous.
There is a tendency for contractors to
be demonised in this process, but it should
be remembered that they are playing their
part in a construction culture that does not
always treat them fairly. Problems can be
minimised if there is a clear and shared
understanding of the contract.
The contractual parties need to
understand the conditions and scope
of works, and they need a clear view of
those items that will impact upon them.
Facilitating this understanding is a big
part of Faithful+Gould’s work here in the
Middle East.
Faithful+Gould has local experience
gained from operating in this region for
over 15 years. This know-how can be
used to our client’s advantage to ensure
the correct contracts are selected and
the parties to the contract are aware of
their full responsibilities and obligations,
therefore minimising unecessary
applications for variations and claims
against the contract. n
Steven Batchelor is the associate director of
Commercial Services at Faithful + Gould
Middle East and India. He can be reached
Variation orders in construction project in oman: problems and remedies
The effects of variations in constructions
projects in oman were determined to be:
(1) delay completion date of the project;
(2) cost overruns; (3) contractors incur
additional costs due to variations; and (4)
claims and disputes.
also, it was determined that all three
parties (owner, designer/consultant, and
contractor) benefit from issuing variations
to the contract.
Recommendations determined from this
thesis were a set of remedies/activities to
minimise variations in construction projects
in oman and they are:
(1) a standard document should be
developed to establish the stages/steps
from the start of the project till completion
and close out;
(2) a permanent standard document
should be developed to cover all
construction regulations and permits
required for projects constructed in oman;
(3) a specialised quantity surveyor and a
project manager should be assigned to
large construction projects;
(4) a common learning data base system
should be developed and shared among
all governmental units;
(5) a technical committee should be
established to review overall planning, to
establish a construction procedure manual,
and to follow-up on its implementation;
(6) the registration of consulting
companies should be reviewed to reflect
their technical capabilities;
(7) a design engineer should not be
allowed to practice in oman without
having a professional license; and
(8) the General conditions should be
reviewed and updated.
source: ali al harthi, civil and
architectural engineering Department,
college of engineering, sultan Qaboos
university
70 SEPTEMBER 2013MID
DLE
EA
ST
TENDERS bigprojectMe.com
www.ccsgulf.com | Tel: +971 4 346 6456 | [email protected]
INTEGRATED ESTIMATING, PROJECT CONTROL
AND ERP SOLUTION FOR CONTRACTORS
ToP TEndERS
BudGET $1,100,000,000
clieNT wijaya karya (indonesia)
regioN kingdom of Saudi Arabia
DescripTioN construction of a hotel complex comprising seven towers, each consisting of 1,000 rooms
sTaTus current Project
proJecT NaMe: lIwa PlaSTIcS PRojEcT
BudGET $3,600,000,000
clieNT oman Refineries & Petroleum industries company (oRPic)
regioN Sultanate of oman
DescripTioN Engineering, Procurement and con-struction (EPc) contract to build a steam cracker and petrochemicals complex
sTaTus new Tender
proJecT NaMe: Eva PlanT & PlaSTIc MoldS FacToRy PRojEcT
BudGET $60,000,000
clieNT Saudi international Petrochemical company (SiPchEM)
proJecT NaMe: HoTEl coMPlEX PRojEcT – MEcca
BudGET $3,500,000,000
clieNT Ministry of finance (Saudi Arabia)
regioN kingdom of Saudi Arabia
DescripTioN construction of Abraj kudai mixed-use towers comprising a total of (12) buildings ranging in height from 30-45
sTaTus current Project
proJecT NaMe: cRudE oIl SToRaGE FacIlITIES PRojEcT
BudGET $2,000,000,000
clieNT State company for oil Projects - ScoP (iraq)
regioN iraq
DescripTioN Engineering, Procurement and construction (EPc) contract to build crude oil storage facilities comprising (29) tanks, each with a capacity of 66,000 cubic metres
sTaTus new Tender
proJecT NaMe: aBRaj kudaI MIXEd-uSE TowERS PRojEcT
regioN kingdom of Saudi Arabia
DescripTioN construction of an ethylene vinyl ace-tate plant with capacity of 4,000 tonnes a year
sTaTus new Tender
RIMAL AL SAROOJ AL MOTHAHIDA L.L.C
72 SEPTEMBER 2013MID
DLE
EA
ST
TENDERS bigprojectMe.com
www.ccsgulf.com | Tel: +971 4 346 6456 | [email protected]
INTEGRATED ESTIMATING, PROJECT CONTROL
AND ERP SOLUTION FOR CONTRACTORS
uae
coMMuNiTy ceNTre proJecT - iNTerNaTioNal ciTy DevelopMeNT
proJecT NuMBer MPP2807-uTerriTory dubaiclieNT nakheel PjSc (dubai)aDDress jebel AliciTy dubai posTal/Zip coDe 17777couNTry uAEphoNe (+971-4) 390 3333fax (+971-4) 390 3314eMail [email protected] construction of a community centre covering an area of 11,000 square metresperioD 2015 sTaTus new TenderDesigN coNsulTaNT Arif & Bintoak consulting Architects & Engineers (dubai)TeNDer caTegories construction & contractingTeNDer proDucTs construction & Addition works
fuJairah lNg sTorage TerMiNal proJecT - phase ii
proJecT NuMBer zPR1140-uTerriTory northern Emirates
clieNT Mubadala development company - Mdc (Abu dhabi)aDDress Mamoura Bldg, near Muroor (4th) Road & Mohammed Bin khalifa (15th) StreetciTy Abu dhabi posTal/Zip coDe 45005couNTry uAEphoNe (+971-2) 413 0000fax (+971-2) 413 0001weBsiTe www.mubadala.comDescripTioN Engineering, Procurement and construction (EPc) contract to build a floating storage and re-gasification unit with capacity of 4.5 million tonnes a year of liquefied natural gas (lnG)perioD 2016 sTaTus new TendercoNTacT persoN Mr Shehab kishwar (Project Manager)e-Mail [email protected] fEEd consultant: Technip (Abu dhabi)pre-feeD coNsulTaNT Poten & Partners ltd. (Greece)
saaDiyaT roTaNa resorT proJecT
proJecT NuMBer MPP743-uTerriTory uAEclieNT Rotana hotels, Suites & Resorts (Abu dhabi)aDDress 7th floor, East wing,
Abu dhabi MallciTy Abu dhabi posTal/Zip coDe 45200couNTry uAEphoNe (+971 2) 699 4444fax (+971-2) 699 4445eMail [email protected] www.rotana.comDescripTioN construction of 5-star Saadiyat Rotana Resort comprising (354) rooms and (13) beach villasperioD 2015 sTaTus new TenderMaiN archiTecT Gazi Awad Architects & Engineers (Abu dhabi)proJecT MaNager Ec harris international limited (Abu dhabi)TeNDer caTegories leisure & Entertainment, hotels, construction
& contractingTeNDer proDucTs hotel construction, Villas construction
DuBai fraMe Tower proJecT - ZaBeel park
proJecT NuMBer nPR026-uTerriTory uAEclieNT dubai MunicipalityaDDress deiraciTy dubai posTal/Zip coDe 67couNTry uAEphoNe (+971-4) 206 4620 / 324 3666 / 206 3030/800 900fax (+971-4) 221 0530 / 324 7465 / 224 8026eMail [email protected]
MIddlE EaST TEndERS proviDeD By
Tel +9712-6348495web www.MiddleEastTenders.com
email [email protected]
spoNsoreD By Tel +9714 346 6456 web www.ccsgulf.comemail [email protected]
74 SEPTEMBER 2013MID
DLE
EA
ST
TENDERS bigprojectMe.com
www.ccsgulf.com | Tel: +971 4 346 6456 | [email protected]
INTEGRATED ESTIMATING, PROJECT CONTROL
AND ERP SOLUTION FOR CONTRACTORS
weBsiTe www.dm.gov.aeDescripTioN construction of dubai frame (Al Berwaz) Tower, a window-shaped, 150-metre by 105-metre complete glass, transparent structure resembling a huge window frameperioD 2014 sTaTus new TenderMaiN coNsulTaNT hyder consulting Middle East ltd. (dubai)fouNDaTioNs, eNaBliNg & piliNg coNTracTor Bin ladin contracting Group l.l.c. (dubai)TeNDer caTegories leisure & Entertainment, Prestige BuildingsTeNDer proDucTs high-rise Towers, Museums/Art Galleries
New cargo TerMiNal proJecT - al MakTouM iNTerNaTioNal airporT
proJecT NuMBer wPR043-uTerriTory uAEclieNT dubai world central (dwc)aDDress Bldg. 1, 5th floor, Emaar Business Park, jebel Ali, Sheikh zayed RoadciTy dubai posTal/Zip coDe 282228couNTry uAEphoNe (+971-4) 321 4040fax (+971-4) 363 8119weBsiTe www.dwc.aeDescripTioN construction of a new cargo terminal at an international airportperioD 15/05/2014 sTaTus current ProjectMaiN coNTracTor Amana Steel Buildings contracting company
l.l.c (dubai) TeNDer caTegories Airport, construction & contractingTeNDer proDucTs Airport Supply & Services, construction & Addition works
sauDi araBia
faDhili gas plaNT proJecT
proJecT NuMBer zPR1186-SATerriTory Saudi ArabiaclieNT Saudi Arabian oil company (Saudi Aramco)ciTy dhahran 31311 posTal/Zip coDe 5000couNTry Saudi ArabiaphoNe (+966-3) 872 0115fax (+966-3) 873 8190 / 874 1655weBsiTe www.saudiaramco.comDescripTioN Engineering, procurement and construction (EPc) contract to build a 1 billion cubic feet sour gas plant in fadhiliperioD 2018
sTaTus new TendercoNTacT persoN Mr Mohammed Rabii Gouja (contracts & commercial Manager)orcoNTacT persoN Mr Bruce niven (chief financial officer & investment director) TeNDer caTegories Gas Processing & distributionTeNDer proDucTs Gas Exploration & Production, Gas Processing & Separation
eThyleNe oxiDe reacTors replaceMeNT proJecT
proJecT NuMBer MPP2789-SATerriTory Saudi ArabiaclieNT Saudi Basic industries corporation (SABic)ciTy Riyadh 11422 Postal/zip code: 5101couNTry Saudi ArabiaphoNe (+966-1) 225 8000/ 225 9701
fax (+966-1) 225 9000eMail [email protected] www.sabic.comDescripTioN Engineering, Procurement and construction (EPc) contract for the replacement of existing ethylene oxide reactors at four petrochemical plantsBuDgeT $260,000,000 perioD 2015 sTaTus new TenderTeNDer caTegories industrial & Special ProjectsTeNDer proDucTs chemical Plants
JeDDah calciuM carBoNaTe MaNufacTuriNg plaNT proJecT
proJecT NuMBer zPR1146-SATerriTory Saudi ArabiaclieNT Al-jazeera factory for Paints company (Saudi Arabia)aDDress Al-jazeera factory for Paints company Bldg., 1st floor,
75SEPTEMBER 2013 MID
DLE
EA
ST
TENDERS
www.ccsgulf.com | Tel: +971 4 346 6456 | [email protected]
INTEGRATED ESTIMATING, PROJECT CONTROL
AND ERP SOLUTION FOR CONTRACTORS
Al Ammarah Street, khamis MushaitciTy khamis Mushait 61961 posTal/Zip coDe 1900couNTry Saudi ArabiaphoNe (+966-7) 221 1111fax (+966-7) 238 2728eMail [email protected] www.al-jazeerapaints.comDescripTioN construction of a calcium carbonate manufacturing plant with capacity of 100,000 tonnes a yearBuDgeT $15,000,000 perioD 2014 sTaTus new TenderTeNDer caTegories industrial & Special ProjectsTeNDer proDucTs chemical Plants
oMaN
offshore pipeliNes iNsTallaTioN proJecT - MusaNDaM area
proJecT NuMBer wPR038-oTerriTory omanclieNT oman oil company Exploration & Production (oocEP)aDDress Bait Al Reem Bldg., 4th floor, Al Thaqafa Street, Al khuwairciTy Muscat posTal/Zip coDe 200couNTry omanphoNe (+968) 2464 0900fax (+968) 2460 5378weBsiTe www.oocep.comDescripTioN installation of two offshore pipelines in Musandam areaBuDgeT $40,000,000 sTaTus current ProjectMaiN coNTracTor national
Petroleum construction company - nPcc (Abu dhabi)TeNDer caTegories Gas Processing & distribution, oilfields & RefineriesTeNDer proDucTs crude Transportation, Storage & distribution, Gas distribution, Pipes, Tubes & fittings (Metal)
QaTar
DoMesTic soliD wasTe TraNsfer sTaTioN proJecT - al khor area
proJecT NuMBer MPP2797-qTerriTory qatarclieNT Public works Authority - AShGhAl (qatar)aDDress Al faisal Tower, Al corniche Street, dafnaciTy doha posTal/Zip coDe 22188couNTry qatarphoNe (+974) 4495 0000fax (+974) 4495 0999eMail [email protected] www.ashghal.gov.qa
DescripTioN construction of a domestic solid waste management facilitysTaTus new TenderTender categories: construction & contracting, Sewerage & drainageTeNDer proDucTs construction & Addition works, Residential Buildings, waste Management
hilToN DouBle Tree siNyar Tower proJecT - wesT Bay
proJecT NuMBer BPR615-qTerriTory qatarclieNT Al-jazi Real Estate investment company (qatar)ciTy doha posTal/Zip coDe 22880couNTry qatarphoNe (+974) 4483 8786fax (+974) 4493 4885.DescripTioN construction of hilton double Tree Sinyar Tower comprising 2 basement levels, a
ground floor and 52 additional floors offering (340) serviced apartmentsBuDgeT $100,000,000 perioD 15/12/2014 sTaTus current ProjectMaiN coNsulTaNT diwan Al Emara Architects, Engineers & Planners (qatar)Mep coNsulTaNT diwan Al Emara Architects, Engineers & Planners (qatar)DesigN coNsulTaNT diwan Al Emara Architects, Engineers & Planners (qatar)sTrucTural coNsulTaNT Salama Structural Engineers (dubai)MaiN coNTracTor derwind Trading & contracting company w.l.l (qatar)Mep coNTracTor Trans Gulf international Electro Mechanical w.l.l (qatar)Building & construction Materials Supplier: Aluma Systems Middle East (dubai)TeNDer caTegories hotels, Prestige BuildingsTeNDer proDucTs high-rise Towers, hotel construction
76 SEPTEMBER 2013MID
DLE
EA
ST
DIARY BIG 5 PrevIew bigprojectMe.com
BIG-5 set to return Big proJecT Me previews The upcoMiNg eDiTioN of Big-5 DuBai, which will see ThousaNDs reTurN To The BiggesT show iN TowN
wiTh sauDi araBia and the uAE’s projects estimated at $510 million and $274 million respectively, the total $1.3 trillion Gcc market is catching the attention of regional and international players as they look to take advantage of the significant opportunities and longevity of the region. held between 25-28 november at dubai world Trade centre, The Big 5 will host more than 2,500 exhibitors from 65 countries with an anticipated 60,000 construction industry professionals over the four-day event.
aDvaNciNg The iNDusTryThis year, the event includes a new area for building interiors, bringing together a wide range of products and services specifically catering to a sector currently worth around $10 million in the Gcc.
“we took the decision to form a dedicated space for the building interiors sector this year,” says group event director Andy white. “The industry has grown year-on-year in the region and is also of interest to a number of specific audience groups, so bringing all these products and services together makes it easier for suppliers to connect with potential buyers and vice versa. The Big 5 is known as a strong business facilitator, and we are
constantly looking for ways to make this process simpler and more effective.”
The exhibition will further focus on product-specific sectors for 2013, such as hVAc, coatings, adhesives and sealants, kitchens and bathrooms, windows and doors, steel, marble, slate and ceramics, water technology and, of course, general construction.
The popular schedule of live demonstrations continues in 2013, with exhibitors creating an ‘as-live’ environment showcasing their innovative technology and solutions directly to their target audience. creating knowledge-based content will continue to play a key role throughout, with free-to-attend seminars taking place in the theatres on the event floor. industry leaders will present research and insight and sharing upcoming trends and innovation, with a strong focus on sustainability, which remains a central theme the event.
Building on the success of the lEEd workshops that have taken place over the past few years at the event, The Big 5 is hosting sessions dedicated to Abu dhabi’s sustainable building code, Estidama, as well as workshops from dubai Municipality and dubai central laboratory. The Sustainable design &
construction conference will take place from 26-27 november and will invite debate and discussion across a range of industry topics, including ‘Master planning for sustainable cities of tomorrow’ and ‘new methods and strategies to drive sustainable building practices across the region’ as well as information on updated sustainable building guidelines from dubai Municipality.
“Education has been a strong platform for a number of years, and each year we aim to provide as many tailored opportunities as possible,” says white. “we want to ensure that there are forums to learn about the most up-to-date information and trends. Sustainability is a common thread across all platforms, and there will information available to attendees for sustainable construction.”
The event also marks the return of the Gaia Awards, now in its sixth consecutive year, rewarding innovation that supports sustainable construction.
white concludes: “The Gcc holds some of the most valuable business prospects for the building and construction industry for the foreseeable future and The Big 5 provides not only the regional industry, but also international players, to make their mark on these opportunities.”
Post-Tensioning ▲ Cable Systems ▲ Bearings ▲ Expansion Joints ▲ Ground Anchors ▲ Heavy Lifting
For more than 40 years, OVM has been a leading systems supplier and specialist contractor in the field of prestressing and other specialist construction techniques. With a global reputation for reliability, professionalism and innovation, OVM systems have successfully been been applied in buildings, bridges, highways, high-speed railways, tunnels, harbours, dams and nuclear power plants. OVM was among the first Chinese prestressing and multi-disciplinary
engineering products manufacturers to be awarded the CE-marking, allowing its products and services to be sold across the EU. It operates under ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:1999. OVM’s facilities are under continuous inspection and quality-assurance routines from Germanischer Lloyd. OVM systems have been implemented globally, in projects conforming to almost all major standards; AASHTO, BS, EN, GB, JIS, ETA, FIP. Its systems have been approved for implementation in many projects by:
Dubai Municipality, Kuwaiti Ministry of Public Works, Kuwait National Petroleum Company, Saudi Ministry of Transport, Algerian Ministry of Public Works, etc.
With a solid financial standing and an impeccable technical grasp of pre-stressing technology, OVM has carefully engineered and implemented a plethora of its products in several hundreds of projects, including 240 projects worldwide of which 58 were in the GCC countries and a further 26 within the MENA region.
OVM Middle East & North Africa FZE, P.O.Box 42624, Sharjah, United Arab Emirates | Tel: +971 6 526 4795
PRESTRESSING SYSTEMS BRIDGE BEARINGS PC STRANDS & WIRES EXPANSION JOINTS GROUND ANCHORS
NAN NING DA QiAO BRIDGE
China
CROWNE PLAZA EXTENSION
Kuwait
OVM MENA_Ad artwork_v2.indd 1 9/5/13 2:47 PM
Big Project ME, the region’s leading monthly B2B magazine for the construction industry, is proud to announce the GCC 2014 Construction Book
PROFILE OPTIONS AND ADD-ONS AVAILABLE - CONTACT US NOW
COMMERCIAL DIRECTOR
Michael Stansfield | +971 4 375 5497
SALES DIRECTOR
Carlo Menezes | +971 4 375 5495
SALES MANAGER
Carol D’Souza | +971 4 375 5496
carol.dsouza]@cpimediagroup.com
SALES MANAGER
Rodi Hennawi | +971 4 375 5482
Now in its 4th edition, the GCC 2014 CONSTRUCTION BOOK will be a celebration of the very best companies in their respective fields of expertise. Ensure that your company is the first to secure exclusivity in your category.
n 2 OR 4 PAGE EXCLUSIVE IN DEPTH COMPANY PROFILEn PROFILE ON WWW.BIGPROJECTME.COM FOR 12 MONTHSn 12 MONTH SHELF LIFEn LAUNCHED AT THE BIG 5 SHOWn DISTRIBUTED TO 15,000 CONSTRUCTION PROFESSIONALS ACROSS THE GCCn COMPILED AND DESIGNED BY OUR EXPERIENCED IN-HOUSE EDITORIAL AND DESIGN TEAM
The GCC 2014 CONSTRUCTION BOOK will be launched at The Big 5 show at the end of November so do not delay and register your profile now.
GCCBook2014Ad_Sept_v1.indd 2 9/4/13 3:58 PM
79SEPTEMBER 2013 MID
DLE
EA
ST
DIARY INFRA OMAN
oN 30 sepTeMBer, 2013, the third edition of infra oman will open its doors, marking the return of the most successful and well-known infrastructure and construction exhibition in the Sultanate.
organised in cooperation with the Ministry of Transport and communications and the Ministry of commerce and industry, the exhibition brings together hundreds of local and international companies at the oman international Exhibition centre.
As a result, the exhibition will be supported by a host of international organisations such as the German
industry and commerce office, the German near & Middle East Association, the Public Establishment for industrial Estates, the Singapore Business federation, the Spanish Economic & Trade office, the Ministry of Economy, uk Trade & investment, the concrete Sawing
& drilling Association and the Vietnam Association of construction contractors.
with the omani government instigating a number of infrastructure-related projects, the Sultanate’s construction market is set to receive heavy interest from a number of
HaPPEnInG THIS MonTH... InFrA oMAn Big proJecT Me previews The ThirD eDiTioN of iNfra oMaN aheaD of The sepTeMBer 30 lauNch of The sulTaNaTe’s BiggesT coNsTrucTioN aND iNfrasTrucTure exhiBiTioN
“i Think wE’RE REAlly AT ThE START of EVERyThinG. wE’RE GoinG To SEE ThE PAcE of conSTRucTion PickuP”
EVEnT lAunchInfra Oman will open its doors for the third time on 30 September, 2013.
SEPTEMBER 2013MID
DLE
EA
ST
DIARY INFRA OMAN bigprojectMe.cOM
80
international companies, including those already based in the Gcc region, says Matt Green, head of Research at cBRE.
“Tourism has clearly been one of the principal focuses for each and every market. oman generally has some pretty good credentials in that respect.”
Green adds that infrastructure is likely to play a massive part in the development of oman over the coming few years. he says that projects like the new Muscat international Airport and Salalah Port are just one part of the increased focus on infrastructure development.
Therefore, it comes as no surprise that the exhibition will focus on a number of different sectors across the industry,
including construction Requirements, Green and future Buildings, heavy Equipments and Technologies and hotel and Tourism Projects, amongst others.
“infra oman has grown significantly since its previous editions, thus establishing itself as the Middle East’s leading infrastructure and industrial projects exhibition,” says Salim omar Al hashmi, cEo of Al nimr Expo, the firm organising infra oman.
This growth has been significant, with the 2012 edition featuring more than 175 local and international exhibitors.
in comparison, the 2013 edition will have 200 exhibitors.
“The event is also meant to provide local and international companies the opportunity to introduce a range of their products, equipments, technologies and services to their target clients -- the decision makers and top officials of companies in oman’s vibrant building and construction industry,” says Melwin d’cunha, managing director of Al nimr Expo.
in its inaugural edition, infra oman won the cMo Asia-Event industry Award 2012 held in Singapore for the Most Admired Event in the Middle East. infra oman is the first exhibition in the Sultanate of oman to be “BPA Audited”.
The audit gives the sponsors & exhibitors certified and accurate number of trade visitors to compare with other exhibitions and invest their money in the right event.
infra oman was recently enlisted as a “ufi Approved Event” by the Global Association of the Exhibition industry.
with experts tipping the Sultanate to be the next major market for growth in the Gcc, exhibitions such as infra oman are clear indications that the country is set to be a major player in the regional construction industry.
“i think we’re really at the start of everything,” predicts Matt Green. “we’re going to see the pace of construction pick up. we’re seeing quite a few residential projects launch and we’re seeing a lot of hotel projects being launched as well,” he adds. n
“infRA oMAn hAS PRoVEd To BE An idEAl PlATfoRM foR All conTRAcToRS And dEVEloPERS To MEET”
infra oman details
n 200 Exhibitors at the event
n 8 number of industry sectors exhibited
n 8 number of country Pavilionst
n 27 number of countries participating in the exhibition
incREASEd ExPoSuRE200 exhibitors will take part in this year’s event.
additional details
To get more information about infra oman 2013, please visit: www.alnimrexpo.com/infraoman.
To reserve your stand in the exhibition, please contact: Jenitha Martin, project director, at telelphone: +968 24700656, mobile no: +968 94041616, or e-mail: [email protected]
JOB NO. CHL_017JOB NAME CHL_017_BigProjectME_SP_AD_RIGHT_vFN_3, (224mm (w) x 280mm (h) + 5mm bleed on all edges)CLIENT The ChilternsCOPY DATE 25/08/13 - Big Project MIDDLE EAST - RIGHT HAND PAGE!
YOU, 77 st martin’s lane, london WC2N 4AA, united kingdom +44 (0)20 7420 3550 - www.you-agency.com
Details correct at time of going to press. Computer generated image is of The Chilterns and is indicative only.Jones Lang LaSalle UAE Ltd is appointed by and acting on behalf of Jones Lang LaSalle UK Ltd to provide marketing consultancy services for this project. The brokerage appointment is between the developer and Jones Lang LaSalle UK Ltd. This publication is the sole property of Jones Lang LaSalle IP, Inc. and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle IP, Inc. The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication.
a private view
Just occasionally an opportunity comes along that is simply too good to miss. The Chilterns, located in the heart of London is one of those. Location, architecture, interior design. A development that quite simply rede� nes envy. One of One.
Our marketing team are now accepting bookings for private presentations of the project. For further information, or to arrange a meeting, please contact:
Wahi Mohsen Nathan Gardner
+971 50 853 54 43 +971 56 392 17 45
[email protected] [email protected]
CHL_017_BigProjectME_SP_AD_RIGHT_vFN_3.indd 1 22/08/2013 16:56
82 SEPTEMBER 2013MID
DLE
EA
ST
conSTRucTIvE CriTiCiSM BigproJecTMe.COM
GAVin dAVidS
WE’VE ALL HEARD about how Dubai
is the epicentre of the regional tourism
industry, with millions of tourists flocking
to the city to take advantage of its luxury
lifestyle, gigantic shopping malls and
constant sunshine and warmth.
Hundreds of hotels are dotted around
the city, ranging from the ultra-high end
Burj Al Arab, to the two and three star
establishments that are found in Deira
and Bur Dubai. With Dubai bidding for,
and expecting to win, the right to host
the World Expo in 2020, the pace of hotel
development is only set to increase.
Yet, with all the influx of tourism it
remains surprising that it’s taken so long
for Dubai to have a truly significant theme
park open within its boundaries.
Of course, places like Wild Wadi and
Aquaventure have existed for years, and
remain huge tourist attractions. However,
they don’t strictly classify as theme parks,
certainly not when compared to the likes
of Disneyworld in Florida or Universal
Studios Hollywood in Los Angeles. With
millions of visitors attracted annually,
these are massive revenue generators that
are vital to their local economies.
Therefore, I was pleasantly surprised
to hear that the Ilyas and Mustafa
Galadari Group are well under way with
their plans to launch the IMG Worlds
of Adventure theme park in the City of
Arabia. According to figures released by
the Group, the park is set to be a massive
139,355m2 in size.
As an unabashed theme park fan,
this is hugely exciting news for me, and
personally, I cannot wait to see what it
looks like when it’s open for business
sometime next year.
However, and while I may be greedy
here, I’m surprised that there haven’t
been any rumblings about a Disney theme
park opening in Dubai.
To me, it makes perfect sense to open
one here, given the ease of accessibility,
the ready-made tourist base and the
disposable income of GCC residents.
Not only does the infrastructure
for such a park exist, but the Dubai
government has consistently shown that
it is willing and able to back large-scale
ambitious projects.
So, hopefully, the success of IMG
Worlds of Adventure will see other
investors decide to take up the challenge
of enticing Mickey and Co over to the
Arabian Gulf, and we could be in for one
heck of a ride. n
Gavin Davids says that Dubai is ready to become a theme park hub in the Middle East, which could open up all sorts of possibilities, including the arrival of a certain big eared mouse…
A World of Adventure awaits