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Transcript of Big Project ME December 2013
093DECEMBER 2013
ALSO INSIDE AWARD ROUNDUPAL JAHRA ELEVATED THE YOUNG TURKSDEVELOPING DUBAI
Hill International’s head of international project management operations Raouf Ghali on why he and you can look forward to 2014
OUTOF THESHADOWS
10 OCTOBER 2013MID
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THE BIG PICTURE BIGPROJECTME.COM
The Construction Machinery Show 2014 is the largest heavy construction machinery event in the region, showcasing a wide variety of products ranging from heavy equipment to machinery, from lighting to generators as well as dealers and service providers.
The event will provide an invaluable platform for customers in the Arab world bringing together manufacturers, distributors and buyers.
The Construction Machinery Show 2014 is also the only event in the region where buyers can see a huge range of equipment in
action via its programme of live demonstrations and the largest ever showcase of its type in the Middle East.
In 2014, the Construction Machinery Show 2014 is teaming up with leading Saudi exhibition organiser, Dhahran International Exhibitions Center (DIEC). This year’s show will run in conjunction with the popular BUILDEX event, now in its 16th year.
Both events will attract worldwide industry experts, investors and buyers to the largest tradeshow in the Eastern Province.
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
Raz IslamPublishing [email protected]: +971 50 451 8213
Michael StansfieldCommercial Director [email protected]: +971 55 150 3849
Gold Sponsorr
The Construction Machinery Show 2014 is the largest heavy construction machinery event in the region, showcasing a wide variety of products ranging from heavy equipment to machinery, from lighting to generators as well as dealers and service providers.
The event will provide an invaluable platform for customers in the Arab world bringing together manufacturers, distributors and buyers.
The Construction Machinery Show 2014 is also the only event in the region where buyers can see a huge range of equipment in
action via its programme of live demonstrations and the largest ever showcase of its type in the Middle East.
In 2014, the Construction Machinery Show 2014 is teaming up with leading Saudi exhibition organiser, Dhahran International Exhibitions Center (DIEC). This year’s show will run in conjunction with the popular BUILDEX event, now in its 16th year.
Both events will attract worldwide industry experts, investors and buyers to the largest tradeshow in the Eastern Province.
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
Raz IslamPublishing [email protected]: +971 50 451 8213
Michael StansfieldCommercial Director [email protected]: +971 55 150 3849
Gold Sponsorr
6 - 13 News_V2.indd 10 10/2/13 10:32 AM
The Construction Machinery Show 2014 is the largest heavy construction machinery event in the region, showcasing a wide variety of products ranging from heavy equipment to machinery, from lighting to generators as well as dealers and service providers.
The event will provide an invaluable platform for customers in the Arab world bringing together manufacturers, distributors and buyers.
The Construction Machinery Show 2014 is also the only event in the region where buyers can see a huge range of equipment in
action via its programme of live demonstrations and the largest ever showcase of its type in the Middle East.
In 2014, the Construction Machinery Show 2014 is teaming up with leading Saudi exhibition organiser, Dhahran International Exhibitions Center (DIEC). This year’s show will run in conjunction with the popular BUILDEX event, now in its 16th year.
Both events will attract worldwide industry experts, investors and buyers to the largest tradeshow in the Eastern Province.
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
Raz IslamPublishing [email protected]: +971 50 451 8213
Michael StansfieldCommercial Director [email protected]: +971 55 150 3849
Gold Sponsorr
The Construction Machinery Show 2014 is the largest heavy construction machinery event in the region, showcasing a wide variety of products ranging from heavy equipment to machinery, from lighting to generators as well as dealers and service providers.
The event will provide an invaluable platform for customers in the Arab world bringing together manufacturers, distributors and buyers.
The Construction Machinery Show 2014 is also the only event in the region where buyers can see a huge range of equipment in
action via its programme of live demonstrations and the largest ever showcase of its type in the Middle East.
In 2014, the Construction Machinery Show 2014 is teaming up with leading Saudi exhibition organiser, Dhahran International Exhibitions Center (DIEC). This year’s show will run in conjunction with the popular BUILDEX event, now in its 16th year.
Both events will attract worldwide industry experts, investors and buyers to the largest tradeshow in the Eastern Province.
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
Raz IslamPublishing [email protected]: +971 50 451 8213
Michael StansfieldCommercial Director [email protected]: +971 55 150 3849
Gold Sponsorr
6 - 13 News_V2.indd 11 10/2/13 10:32 AM
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M
Y
CM
MY
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AD234x290_BigProject_28112013_HR_AW.pdf 1 12/3/2013 4:11:57 PM
CONTENTS
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DECEMBER 2013
PAGE 20Big Project ME visits
the Al Jahra Road Development project
in Kuwait City.
05 THE BIG PICTURE
IMF CAUTIONS DUBAI OVER ANOTHER PROPERTY BUBBLE
Concerns expressed about over-optimism in property market
12 NEWS ANALYSIS
THE COUNTDOWN BEGINS
Big Project ME looks at the possibilities open to Dubai ahead of Expo 2020
16 IN PROFILE
AHEAD OF THE CURVE
Wael Allen sits down with Big Project ME to chalk out his plans for Hyder
20 SITE VISIT
ELEVATED SOLUTION
Big Project ME pays a visit to the Al Jahra Road Project in Kuwait City
26 COVER STORY
KING OF THE HILL
Stephen White flies to London to talk to Raouf Ghali, head of IPM at Hill
36 AWARDS ROUNDUP
A CELEBRATION OF EXCELLENCE
Celebrating all the winners at the Big Project Middle East Awards 2013
42 COUNTRY FOCUS: TURKEY
THE YOUNG TURKS
Why Turkey could be the next big player in the GCC construction market
46 SECTOR FOCUS: MASTER DEVELOPERS
OVERCOMING FEARS
Master developers explain why investors in Dubai are over their fears
50 SPECIAL FEATURE
PREFABRICATING THE FUTURE
Why prefabricated construction could be the way forward for the industry
56 TOP TENDERS
AL HABTOOR CITY UP FOR BIDS
Listing the Middle East’s biggest construction tenders of the month
62 THE BIG 5 REVIEW
BIGGER AND BETTER
Big Project ME reviews the biggest The Big 5 show in years
64 CONSTRUCTIVE CRITICISM
PRE-EMPTIVE MEASURES
Why a Ministry of Labour initiative has set the standard for governments
2 DECEMBER 2013MID
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EDITOR’S COMMENT BIGPROJECTME.COM
Stephen WhiteGroup Editor
The last week of November was a breathless one for the Big Project ME team as we took on The Big-5, our Big Project ME Awards and greeted the news that Dubai is going to host the Expo 2020 extravaganza. I spend my life writing words and we heard many words last month. Challenge. Value. Dubai. Saudi Arabia,Iran, reward, partnership, but one word I heard above all is opportunity.
The Big Project ME Awards was an opportunity to thank all of our readers who participated in the process and offer a well done to all that were shortlisted or won an award. And this month’s comment is an opportunity to thank the judges who freed up valuable time for us.
The shortlist was a pretty useful barometer of the opportunities we have seen in the last two years. Infrastructure, rail, roads dominated the judging and it will be fascinated to see if the list will evolve in the next 12 months, especially when Qatar and Dubai start construction in earnest.
With the news of the Expo win ringing in our ears, I spoke to many people at The Big-5 who were genuinely afraid that we may see another 2008, and unfortunately another 2009 and 2010 if we fail to heed the lessons of the past. I believe the industry has an opportunity to prove these people wrong. Prove that when we say we will deliver. We will. When we promise to fulfill all the obligations on our contracts. We do. We can control what’s in our grasp. We just need to grasp the opportunity.
When the temptations of the past and the bad habits start to come back. We refuse and seize the opportunity to drive forwards and upwards.
Onwards and Upwards
MID
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PUBLISHER DOMINIC DE SOUSA
GROUP COO NADEEM HOOD
MANAGING DIRECTOR RICHARD JUDD EDITORIAL
GROUP EDITOR STEPHEN [email protected] +971 55 795 8740
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5DECEMBER 2013 MID
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BIG PROJECT ME TALKS TO WAEL ALLEN OF HYDER CONSULTING ABOUT HIS EXPANSION PLANS – PAGE 16
CONCERNS EXPRESSED ABOUT ‘OVER-OPTIMISM’ IN THE PROPERTY MARKET AS PRICES AND EXPECTATIONS RISE IN THE EMIRATE
THE IMF HAS cautioned investors in
Dubai against over-optimism regarding
its property market boom as prices and
expectations rise in the city.
Masood Ahmed, IMF’s director
for the MENA region said: “When you
begin to see very rapid increases in any
asset prices, then you just need to be
prepared to act.
“The government of Dubai is already
beginning to act,” he added.
According to a Reuters news report,
Ahmed said that measures needed to be
taken to avoid the mistakes that led to
the property bubble of 2008.
“Singapore has a one-time tax of
15% if you resell the property within six
months,” he explained.
“So there are instruments that can
be done (used). Going forward, just
make sure that fundamentals continue
to drive it, do not let yourself be over-
taken by a degree of exuberance.”
The UAE’s property market has
been on a high since developers began
launching new projects last year, expert
and this bullishness was also proved by
the popular success of Cityscape Global
2013, recently held in Dubai.
House prices in the emirate have
jumped by more than 20% over the last
year, a surge that prompted the IMF to
warn in July of this year of the risk of
another property bubble forming after
the crash that lasted from 2008 to 2010
and almost brought state run compa-
nies to a halt.
Early this year, Dubai said that it
would double a registration fee charged
on real estate transactions, from 2% to
4%, to prevent excessive speculation.
The chief of the city’s land depart-
ment told Reuters that Dubai would
strictly enforce existing rules and if
necessary, set up new ones to prevent
another property bubble.
Concerns regarding the need for
a coordinated plan by state-linked
property developers continue to linger,
though.
“That’s what we have lacked in the
run-up to 2008,” explained Farouk
Soussa, Citigroup’s chief economist
for the region at the Cityscape Global
event. “There was too much competi-
tion between the big state developers
and that’s what I fear we are running
into again.”
Since 2012, state-linked developers
have dusted off projects shelved dur-
ing Dubai’s 2009-2010 debt crisis and
unveiled new ones. Some $51 billion
worth of projects is estimated to have
been announced in between January
and September. The UAE central bank
imposed limits on mortgage loans last
month and its governor insisted that
he was not worried about a new house
price bubble.
IMF CAUTIONS DUBAI OVER EFFECTS OF ANOTHER PROPERTY BUBBLE
n Mohammed Bin Rashid City, value: $100 billion – Launched November 2012
n Akoya by Damac, value: $2.5 billion – Launched April 2013
n Bluewaters Island, value: $1.6 billion – Launched February 2013
n Viceroy Palm Jumeirah, value: $1 billion – Launched May 2013
DUBAI MEGA-
PROJECTS
6 DECEMBER 2013MID
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ABU DHABI FINANCE TIES UP WITH RICS TO REGULATE PROPERTY VALUATIONS
Hope that transparency in the UAE property market will boost investor confidence
In an effort to ensure better regula-tion of property valuations, Abu Dhabi Finance (ADF) has signed a Memorandum of Understand-ing with the Royal Institution of Chartered Surveyors (RICS).
ADF hopes that transparency in the UAE property market will boost investor confidence and increase foreign direct investment (FDI) into the country.
“Home owners, investors, regu-lators and lenders all want to see a consistent, professional approach to valuations,” said Chris Taylor, CEO of ADF. “A move towards
greater regulation of valuers will help build confidence in the market.”
ADF understands artificially elevated property valuations can overheat the property market and can impact investor confidence from outside of the region. It is therefore hoping the collaboration with RICS can help contain this market uncertainty.
“By working with RICS Regis-tered Valuers, ADF can help pro-mote consistency and transparency in the UAE valuation profession, and thus limit the risk faced by investors and those buying their own home,” said Taylor.
RICS developed the regulatory monitoring initiative, known as Valuer Registration (VR) following the last global financial crisis to ensure the consistent application of professional valuation standards worldwide.
BIG PROJECT ME TAKES A TOUR OF THE AL JAHRA ROAD DEVELOPMENT PROJECT IN KUWAIT – PAGE 20
12
KINGDOM CRACKS DOWN ON ILLEGAL WORKERS
Round-ups of workers fall under the Nitaqat programme, authorities say
SAUDI AUTHORITIES HAS rounded up
thousands of illegal foreign workers at the start
of a nationwide crackdown ultimately aimed at
creating more jobs for locals, a Reuters report
said.
Thousands of workers left the country fol-
lowing a grace period, during which expatriates
were asked to fix their legal status to avoid leav-
ing the Kingdom or facing jail.
These exercises – broadly falling under the
country’s Nitaqat programme – are efforts on
behalf of the government to increase employ-
ment for locals in the country.
Currently, official Saudi numbers estimate
an unemployment rate of 12%, a number that
nevertheless excludes a large number of citizens
who say they are not seeking a job.
Police carried out raids on businesses,
markets and residential areas to catch expatri-
ates whose visas are invalid because they are not
working for the company that ‘sponsored’ their
entry into the kingdom, added the report.
Raising private sector employment in a coun-
try where most Saudis are in government jobs
and where businesses employ more foreigners
than locals is a major challenge for the Kingdom.
Reports as Big Project ME went to press,
suggest more than 140,000 foreign workers have
been arrested across the Kingdom, and126,000
have already been sent back to their home coun-
tries since the beginning of November.
PER CENT
OFFICIAL SAUDI UNEMPLOYMENT RATE
ARABTEC RESULTS SHOW STRENGTH IN CONTRACTOR
UAE contractor beats analyst predictions as net profits triple
FINANCIAL HIGHLIGHTS (AED M, UNLESS OTHERWISE STATED) 9MTHS 2012 9MTHS 2013 CHANGE Q3 2012 Q3 2013 CHANGE
AED (M) AED (M) % AED (M) AED (M) %
BACKLOG 18.167 23,500 29% 18.167 23,500 29%REVENUES 4,007 5,080 27% 1,395 1,937 39%
GROSS PROFIT 493 605 23% 152 232 53%
MARGIN% 12% 12% - 11% 12% 1%EBITDA 308 457 48% 103 184 79%MARGIN% 8% 9% 1% 7% 9% 2%
NET INCOME 145 367 153% 52 162 212%
NET MARGIN% 4% 7% 3% 4% 8% 4%EARNINGS PER SHARE 0.07 0.13 86% 0.02 0.03 50%NET PROFIT 108 256 137% 35 101 189%CASH FLOW FROM OPER- 179 234 31% - - -BACKLOG-TO-REVENUE 3.4x 3.5x - - - -
ARABTEC HAS RE-
CENTLY announced a
hike in its third quar-
ter net profits, beating
analyst predictions.
Involved with
building a branch of
France’s Louvre mu-
seum in Abu Dhabi,
the company made a
Q3 net profit of $27.4
million. The figure is
not only almost thrice
its 2012 Q3 net profits
of $9.5 million, it is
also better than ana-
lysts’ predictions that
Arabtec’s quarterly
profit would be $17.4
million.
7DECEMBER 2013 MID
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ALMOST 200 BUILDINGS were demolished by the Municipality of Abu
Dhabi following their failure to meet public health and safety standards.
Since 2010, 881 buildings were marked out as requiring improvement,
of which 685 were refurbished, 16 were demolished and 57 are currently
under maintenance.
90 buildings were evacuated and more than 55,000 workers moved
to worker accommodation in the city’s suburbs after 99 offences were
recorded during the same period for buildings housing a large number of
workers and bachelors in residential neighbourhoods. 755 of the 41,000
workers, who have been occupying 2,700 villas in residential neighbour-
hoods since 2010, were also evacuated.
Undertaken between 2010 and 2013, these demolitions were carried
out after building owners were informed, a report by Gulf News said.
More than 12,500 warnings were issued in 2011 for building, public health,
and roadside violations, which reached 17,700 in 2012 and 10,500 by the end
of September 2013. Commercial and administrative entities operating
from villas in residential districts were also evacuated by the Municipality.
200 ABU DHABI BUILDINGS DEMOLISHED TO IMPROVE PUBLIC SPACES
THE IMPORTANCE OF PEER REVIEW AND FINDING POWER IN ARMENIA WITH RAOUF GHALI – PAGE 26
L&T SECURES OETC CONTRACT WORTH $72MN
Contract involves the construction of two 132/33kV grid stations in Amerat and Mabella-2
L&T (Oman) LLC, a subsidiary of Indian engineering giant Larsen & Toubro Ltd, has secured an order worth $72mn from Oman Electricity Transmission Co (OETC).
“This is an engineering, procurement and construction (EPC) contract,” said Surendhra Babu, chief executive of L&T (Oman), add-ing the contract involves the construction of two 132/33kV grid stations in Amerat and Mabella-2, along with the installation of 132kV overhead lines and cables in Muscat governorate.
The company estimates the project will be completed in 20 months.
“We have landed an electrical job after a long time. We are also trying to get more such projects in Oman which are in the tendering process. There are projects in the infrastructure sector and we will be bidding for more contracts,” Babu added.
MAKKAH TO BEGIN WORK ON TWO METRO SYSTEMS IN THE FIRST QUARTER OF 2014
Work on first phase expected to cost $6.7 billion and will begin by the middle of next year
THE FIRST PHASE of the $16.5
billion-worth integrated public
transport project will see the
establishment of two metro
systems in Makkah under the aegis
of Makkah Governor Prince Khaled
Al-Faisal.
A metro line of seven stations
beginning at Jamrat region in Mina,
running 11km westward and along
the northern side of the Grand
Mosque, King Abdul Aziz Road and
Haramain Railway’s main station
in Rusaifa before ending at the
Makkah-Jeddah Expressway will be
the first project under the develop-
ment.
The second metro, a 33km
line with 15 stations will start at
Madinah Road, north of Taneem
Mosque and move southward
to reach the western side of the
Grand Mosque as it passes by King
Abdulaziz Towers and Azizia Street,
before turning to Taif-Karr Road to
reach Umm Al-Qura University.
Work on the first phase is
expected to cost around $6.7 billion
and will begin by the middle of next
year and require three years for
completion, said Makkah Mayor
Osama Al-Bar.
“We will begin procedures
this week for the qualification of
contractors to award contracts in
the first quarter of 2014,” said Saad
al Qadi, CEO of Makkah Trains
Company.
He added the first phase would
be carried out in three contracts
involving civil work, control im-
plementation, signal systems and
importing trains and carriages.
Most of the first metro line and part
of the second will operate through
underground tunnels.
The Makkah transport project
involves four metro lines that will
span at total of 114km over 88
stations and is expected to improve
pilgrim transportation throughout
the city.
90 buildings were evacuated and more than 55,000 workers moved to worker accommodations
WARNINGS
ISSUED IN 2011 FOR BUILDING, PUBLIC HEALTH AND ROADSIDE VIOLATIONS
12,500
Terms and Conditions apply
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10 DECEMBER 2013MID
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EMAAR LAUNCHES $3 BILLION DEVELOPMENT IN ERBILKurdistan region of Iraq regarded as an attractive investment hub
Keeping with current market interest in Iraq’s infrastructure markets, Dubai-based Emaar Prop-erties launched a $3 billion development, called ‘Erbil Downtown’, in Erbil, the fast-growing capital of Kurdistan region of Iraq.
Relatively unaffected by the political instability that interferes with infrastructural development in the country, Kurdistan region is viewed as
an attractive investment hub, especially in the energy sector.
The project is expected to reach completion in three stages over a period of five years or sooner, if market factors permit so. Covering an area of 541,000sqm near the city centre, the development will include residential apartments, hotels and a shopping centre.
OMAN’S MINISTRY OF Manpower is
reportedly going to suspend the recruitment
of foreign workers for six months, as part of its
labour market regulation measures.
Oman News Agency reported the Ministry
will restrict small construction and cleaning
companies from employing expatriates until
April 2014, at the earliest. The move is also to
enable a review of the actual needs of the labour
force across different sectors.
The ministry seeks to eradicate illegal work-
ers as a mode of creating job opportunities for
the national workforce. The Omani government
had also said, earlier this year, that it would
limit the total number of foreign workers and
raise minimum wage for locals as an attempt to
increase the employment of its citizens.
Foreigners comprise 1.3 million – almost
39% – of the total 3.3 million population in the
country, most of whom are South or Southeast
Asian workers brought in to do skilled or strenu-
ous jobs in infrastructural sectors such as oil,
construction and service industries.
OMAN’S MINISTRY OF MANPOWER TO SUSPEND FOREIGNER-RECRUITMENTMinistry seeks to eradicate illegal workers as a mode of creating job opportunities for the national workforce
GCC ON TRACK FOR $194BN RAILWAY BOOM
Railway is region’s largest capital projects market
39PER CENT
FOREIGNERS IN OMAN’S TOTAL POPULATION
$194 BILLIONValue of rail projects that are planned or underway in the GCC
$30 BILLIONValue of rail sector projects awarded so far in 2013
$108 BILLIONTotal value of projects awarded in 2013 so far
$22 BILLIONValue of the Riyadh Metro Project
TIMELINE FOR A MASSIVE BOOST IN THE REGION’S
RAIL MARKET
12 MONTHS
JEDDAH METRO EXPECTED TO BE
AWARDED
H12015
FIND OUT WHO THE WINNERS WERE AT THIS YEAR’S BIG PROJECT MIDDLE EAST AWARDS – PAGE 30
Winner of
Excellence and Ideas inPlastic Conversion for Building
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SAVE
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12 DECEMBER 2013MID
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NEWS ANALYSIS BIGPROJECTME.COM
There was always a sense of its arrival.
Even as reports suggested the UAE’s
burgeoning property markets could be
headed for ugly downturns, thinkers,
doers and leaders across the construction
sector remained largely positive about Dubai’s
Expo 2020 bid, and the after effects of what
looked like a sure-shot victory.
THE COUNTDOWN BEGINSAs the dust settles on Dubai’s celebrations on receiving hosting rights
for the Expo 2020, Big Project ME looks at the various possibilities this result has opened up for the country’s construction sector
As this piece goes to press, it’s been about a
100 hours since the announcement that Dubai
defeated Yekatrinberg (Russia), Izmir (Turkey)
and Sao Paolo (Brazil) with massive margins to
win the hosting rights for Expo 2020 – and the
city is not done celebrating just yet.
Burj Khalifa provided the backdrop for an
extravagant display of fireworks that were set
off within minutes of the announcement, while
a national holiday was declared for educational
institutions across Dubai.
Celebrities posted congratulatory messages
on social networking forums, and a video
of Dubai’s Crown Prince, Sheikh Hamdan
bin Mohammed bin Rashid Al Maktoum’s
celebrations, went viral.
13DECEMBER 2013 MID
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NEWS ANALYSIS
Crowds poured into the streets in their cars,
and the jubilation was clearly visible across
the city. For that moment, the possibility of a
property bubble, expanding rental rates and
rising commodity costs were all but forgotten.
The Expo’s effects on Dubai have been
circulated in various reports – financial and
consumer – since the announcement. The
impact can broadly be divided into four
sections across the city’s economic landscape,
and the region’s construction sector stands to
undergo major alterations.
The most obvious impact of the run-up
to the Expo is job creation. “Dubai Expo
2020 will spur significant employment, trade
and investment opportunities for the entire
MENASA region, leaving a lasting economic
impact,” said HE Reem Al Hashimy, UAE
Minister of State and managing director of the
UAE’s Higher Committee for Hosting the 2020
World Expo in Dubai.
An Oxford Economics study about the
Expo’s impact has revealed that 277,149 jobs
will be created between 2013 and 2021. As
much as 40% of these will benefit the travel and
tourism sector alone.
While employment-generation and hiked
salaries maintain the celebratory atmosphere
in the city’s employment market, concerns
are raised on the other side of the transaction
cycle, with reports pertaining to rising property
prices and inflation doing the rounds.
Early last month, the International
Monetary Fund (IMF) had warned Dubai
against the possibility of a property bubble as
the market boomed due to increased valuations
across the city.
With the Expo now confirmed to be held
in Dubai, these prices are likely to continue
their up-growth, and there is already talk of
increased residential rates in the market.
A report by local daily Gulf News has
revealed increased property transactions at
Dubai World Central.
“Projects such as the construction of the
Dubai Metro Purple Line and the work in and
around the Dubai World Central — the actual
site of the expo — are likely to be expedited,”
said Mat Green, head of research and
consultancy UAE, CBRE Middle East as per the
report.
“The new airport (Al Maktoum
International) would also become a catalyst to
development of the air transport infrastructure
— a key driver for the sustained economic
growth of the emirate.”
“REGULATORY BODIES ARE STRICTER NOW, WHICH IS HEALTHY, BUT WE’LL HAVE TO CLOSELY WATCH THE TRENDS AND PATTERNS. I HOPE THE MARKET HAS LEARNT A LESSON”
EXPO 2020 NUMBERS:
n 438ha Size of Dubai Expo site in Jebel Ali
n 277,000 Jobs expected to be created as a result of the win
n US$8.1billion Investment in new infrastructure to host the event
GRAND DESIGNSThe Expo 2020 celebrations continue as the real work starts to begin.
Additionally, the CBRE report, released prior
to the announcement of the bid results, said
that market sentiment in support of the Expo in
Dubai could further inflate the cost of living in
the city, stating it could “compound a situation
where residential rents have already grown by an
average of 23% during the last year.”
The construction industry too, it is believed,
will have to bear the brunt of the highly
opportunistic market.
“I was discussing the impacts of Dubai
winning the Expo 2020 bid with one of my
cement suppliers last week,” said Stefano
Iannacone, managing director of IBS Mapei,
Dubai. “He told me there was a good chance
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NEWS ANALYSIS BIGPROJECTME.COM
that the materials would get costlier by about
10-15% if the results favour Dubai.”
“It doesn’t necessarily need to happen,
but I’m very concerned about rising material
prices,” he adds.
Nevertheless, residents and construction
professionals alike can be assured that an
extensive infrastructure boom is headed
Dubai’s way.
Dubai Metro’s red line is expected to be fast-
tracked into completion in time for the Expo
2020. The world’s tallest planned commercial
tower by the Dubai Multi Commodities
Centre, named ‘Burj 2020’ on the eve of the bid
results, will also be constructed as part of the
preparations for 2020.
“There is scope to build in the emirate,”
says Iannacone. “The Expo will facilitate the
hospitality sector, and with a huge influx of
visitors and potential employees expected,
there will also be a high demand for residential
units, schools, hospitals and so on.”
“Dubailand currently needs more
accessibility from across the city, so there is a
possibility of new roads being constructed that
lead into the site itself,” he adds.
“It all scares me a little bit, though, because
I’m afraid that the market will repeat its
mistakes from 2008,” he adds, echoing earlier
market reports that consistently claimed UAE
– and Dubai, in specific – would have to tread
carefully amidst its trade boom.
The Expo bid win was announced within the
same week as UAE’s national day, giving young
Emiratis and expats alike more than one reason
to celebrate.
“MATERIALS WOULD GET COSTLIER BY ABOUT 10-15% IF THE RESULTS FAVOUR DUBAI. IT DOESN’T NECESSARILY NEED TO HAPPEN, BUT I’M VERY CONCERNED ABOUT RISING MATERIAL PRICES”
“Dubai is the perfect candidate to host the Expo because it is a universal city. It is already globalised and it’s so connected to the world. We are very ready to contribute our Expo experience and learnings from the Milan Expo and have a very important bridge between the two Expos.”Giorgio Starace, Italian Ambassador to the UAE
“Dubai’s bid for the World Expo 2020 demonstrates how large cities can rise to the challenges of the future, which is relevant to Lyon’s own international development plan. Hosting the World Expo constitutes an important and natural progression for Dubai, which has made its tourism strategy the engine of its economic reconversion.”Gerard Collomb, Senator-Mayor of Lyon and President of Greater Lyon
“Dubai is a city that shows how different cultures and peoples can converge behind common goals, living and working side by side. I am proud that the UK has played a part in this and delighted to be making the case for this city to get the global recognition that Expo 2020 would bring.”David Cameron, Prime Minister, UK
“Canada believes it is time for the Middle East to host at a time of such hope and challenge in the region. Dubai is best placed to bring together the most diverse group of peoples from around the world, to share ideas, aspirations and solutions for the future. Canada’s support for Dubai reflects our commitment to the dynamism, hope and future of emerging economies in the region and beyond.”Canadian Foreign Affairs Minister John Baird
DUBAI BID SUPPORTERS
While social networking websites are busy
with users dissecting the pros and cons of the
Expo 2020 in Dubai, reports explaining the
positive impact of the event on the city’s many
economic sections, such as SMEs, hospitality,
infrastructure, construction and so on continue
to emerge, proving that despite the victory,
Dubai has a long way to go in proving itself to
its doubters - well-meaning as they might be.
The government’s role will be more decisive
than ever hereon; Dubai’s bid committee
has constantly placed emphasis on the need
for partnerships - a facet also visible in the
number of countries who came out in support
of the emirate’s bid in the run-up to the
announcement.
Locally, though, the government will have
to continue its efforts in economic rejuvenation
and regulation to ensure the city is braced well
to host the Expo 2020, and sustain itself in the
process as well.
“Regulatory bodies are stricter now, which
is healthy, but we’ll have to closely watch the
trends and patterns. I hope the market has
learnt a lesson,” Iannacone concludes. n
PRICE RISE WARNINGSteffano Iannacone, Mapei, warns that material prices are under threat but is excited by the potential.
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IN PROFILE WAEL ALLEN BIGPROJECTME.COM
Big Project ME sits down with Wael Allen, the new group chief operating officer at Hyder Consulting Middle East, for a wide ranging and insightful chat.
Gavin Davids and Stephen White report
AHEAD OFTHE CURVE
“We always believe that change is a healthy
thing to do and we encourage our people to
take on different roles and grow within the
company. I think that having someone in
the same position for a long time is probably not
the best for them and for the company.”
It’s probably a good thing that Wael Allen
is a big fan of change, because he’s about to
embark on a big one. Currently the regional
managing director of Hyder Consulting Middle
East, he is about to be named as the group chief
operating officer and chairman of the Middle
East. He is set to assume his responsibilities in
the New Year.
In late November of this year, he sat down
with Big Project ME to outline his vision for
the engineering consultant giant and explain
why he believes that the Middle East region will
come to play a major role in the fortunes of his
company and the industry.
“It’s a new role actually. Hyder is always
keen to create opportunities for its employees.
As we grow in scale and complexity of projects,
we’re shifting ourselves into the multinational
model where we can scale up fast and use all
the resources of the company to execute all
of our mega projects around the world,” Allen
explains, holding court at Hyder Consulting’s
offices in Dubai.
“It’s not about us catching up with other
organisations or emulating ourselves. I think
the role is specifically about making sure that
our clients receive the best possible service.
And that is through bringing all of the resources
of the company to bear on a specific project (if
necessary). I think we’re unique at Hyder in
that we’re truly multinational.”
“What I mean is that we’ll actually bring
the right resources in, no matter where they
are from, for a job – independent of location.
So actually, you see an execution of projects
and giving value to the client even when the
locations of the client and the project team are
not necessarily in the same place. Doing that is
the true multinational model,” he points out.
This multinational model that Allen speaks
off is set to be one of Hyder’s trump cards in the
Middle East, given the rapid expansion of the
consultancy’s regional project portfolio. Over
the next few years, Hyder will be taking on a
variety of projects, from the Riyadh Metro to
the Kahramaa Water Security Project in Qatar.
The scope and variety of these projects
makes it essential for Hyder to be on the ball
when it comes to delivering them to their
clients. Not only are expectations high from
the client’s side, but Allen says that he’s
determined to ensure that Hyder Middle East
meets much higher expectations: his own.
“I think I have a very clear mandate on
what I need to do. It’s basically assessment
and allocation of the right resources to the
right projects, supporting and managing what
we call ‘group projects’. Some of the projects
are large enough that they are given the
connotation of being ‘group projects’ rather
than ‘regional projects’.”
“What I mean by that is that if the Hyder
Group is interested in the project, it’s reviewed
at the highest level and all resources and
support from other management is given
to ensure that those resources are given to
these projects. With group projects, all the
company’s resources, efforts and support is
actually provided.”
“We have our global excellence centres and
part of my job is to make sure that they’re scaled
up properly and that we capitalise on the right
technology and lessons learnt from all projects.
We have a library of data that is available to
all regions which makes sure that we’re not
‘reinventing the wheel’ and that we’re giving
“WE’LL ONLY TAKE ON PROJECTS WHERE WE THINK OR STRONGLY BELIEVE THAT WE CAN PROVIDE A GOOD SERVICE. THERE HAVE BEEN MANY TIMES WHERE WE WILL GO TO OUR CLIENTS AND SAY, ‘ON THIS OCCASION, UNFORTUNATELY, WE WON’T BE IN A POSITION TO GIVE YOU THE BEST SERVICE’”
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18 DECEMBER 2013MID
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good, maximum value to our clients,” he
explains. “Looking at the global design centres,
that’s where we can scale up fast. Those are the
elements. Integrating all the regions into our
multinational model allows us to make sure that
we can operate consistently.”
“As a company, we always strive to ensure
that we have a sustainable business model.
When I say sustainable, I mean having the
diversity in the type of projects that we
undertake. While the last four years have seen
a heavy emphasis on infrastructure and serving
the public sector, we’re very keen within the
company to have a good balance between the
public and private sector,” he adds.
Allen continues, pointing out that this not
only affords Hyder’s people the opportunity to
work on different projects and diversify Hyder’s
portfolio, but that it also helps the company
spread out its risk.
“We consciously evaluate and assess the
work, and we’ll only take on projects where we
think or strongly believe that we can provide
a good service. There have been many times
where we will go to our clients and say, ‘on
this occasion, unfortunately, we won’t be in a
position to give you the best service’ and decline
to take part in the project,” Allen admits.
“The first thing we want is to be able to
provide the right resources to create the
appropriate impact,” he says.
This reluctance to offer anything other
than the best to clients is something that Wael
Allen is convinced will set Hyder apart from
its competitors in a massive $119.6 billion
infrastructure market.
As one would expect from such a seasoned
campaigner in the Middle East, Allen is quick to
assess the market and identify how Hyder can
best take advantage of the opportunities on offer.
“I think the challenges across the globe
are the same. It is water resources, energy and
environmental issues. We’re in all three aspects.
The challenges across the globe are the same.
Economies are in recession and for them to
recover, they’ll need good infrastructure. That’ll
be through communication, transportation, and
logistics. We’re in all these sectors that will make
a difference to the viability of water resources, as
well as sustainability and energy,” he asserts.
“In Qatar, we’re fortunate to have won many
significant projects from Ashghal, where we’re
enhancing the whole road and transportation
infrastructure, as well as looking after the
security of water. We’re looking after what is
probably one of the largest mega-reservoirs in
the region.”
This is the Kahramaa Water Security project
which will see Hyder working with Qatar
General Electricity and Water Corporation on
a water project that will provide seven days of
strategic water storage within its network. Its
“AS A COMPANY, WE ALWAYS STRIVE TO ENSURE THAT WE HAVE A SUSTAINABLE BUSINESS MODEL. WHEN I SAY SUSTAINABLE, I MEAN HAVING THE DIVERSITY IN THE TYPE OF PROJECTS THAT WE UNDERTAKE”
Wael Allan joined Hyder Consulting on 1 April 2009. He has a strong background in multinational business management having worked for a number of major engineering and construction companies including Raytheon Engineers and Constructors.
Wael, who is fluent in Arabic, has extensive experience in running global businesses through his work in Saudi Arabia, Japan, Germany, the UK and USA. He is also skilled in delivering sustainable business growth through a balanced approach to operations and business development.
Prior to joining Hyder, Wael held the positions of Executive Vice President for Skanska USA Building Inc and CEO of their pharmaceutical group.
WAEL ALLEN PROFESSIONAL BIOGRAPHY
19DECEMBER 2013 MID
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objective is to help cope with the new, more
challenging developments in the country while
also securing contingency in reserved stock
in case of a severe nation-wide water supply
interruption. Currently, water reservoirs in the
country last just a few days.
The project will entail the construction of five
mega-reservoir sites and some 200km of large
diameter ring mains. Each reservoir site will
ultimately comprise up to ten reservoir modules,
each of which may be the largest of their type in
the world.
The reservoirs and pipeline network, with
associated pumping stations, will provide up
to 15 million cubic metres of strategic potable
water storage. Commenced in February 2012,
completion is expected by the first half of 2016.
“Because we use resources from other
regions and areas, and bring them to the Middle
East, we can scale up very fast. It’s that ability
that differentiates us from others. I’m sure
the Expo 2022 will be great for the region and
the Arab World. It’ll be a catalyst for growth
and stability. It will bring more jobs and more
opportunities for everybody.
“We identify it as a great opportunity - what
kind of projects we would be able to do? Are
we able to cater for some of these potential
projects, within our current structure? Believe it
or not, the answer is yes. Because we can scale
up through our multinational model that others
may not have,” he muses.
But it’s not all about Dubai and Qatar for
Hyder. Saudi Arabia is also set to play a major
role in its plans over the next few years. In July
this year, the consultant was appointed to help
build the $22.5 billion Riyadh Metro project.
Furthermore, the company also recently
opened a ‘Global Centre of Excellence’ in
Amman, Jordan as part of a drive to tap into the
growing opportunities in the Levant region.
Being of Jordanian heritage, this is a project
close to Allen’s heart and he tells Big Project ME that he believes it’ll be crucial to Hyder’s
operations in the Middle East as it gives them
access to a young, educated, multi-lingual
workforce from the region.
In fact, given the plethora of opportunities
available in the Middle East, he says that one
of the most important roles he’ll have to play is
to say ‘no’ to projects that come up, keeping in
mind what Hyder will have to offer their clients.
“We are opportunity-rich as a company and
the challenge is knowing when to say no and
when to say yes. We’ve so many opportunities,
globally, but the challenge is picking the projects
where we can excel and make sure that we have
a happy client at the end,” he explains.
“So it’s really about matching our existing
capabilities and what we can do with our client
needs. That is the challenge going forward.”
“I really think that the risks are the same:
You’ve got to be able to identify and understand
your clients well. Their ability to pay, their ability
to execute these projects,” Allen asserts.
“So again, that’s why I talk about selectivity
of a project and the fundamentals of a particular
project. In the past, people went out of control.”
“We don’t really focus on growth for the
sake of growth. For us we focus on doing the
right things. Growth should be the outcome of
doing the right things rather than the other way
around,” he concludes, highlighting once again,
his clear vision for his company. n
“WE FOCUS ON DOING THE RIGHT THINGS AND GROWTH SHOULD BE THE OUTCOME OF DOING THE RIGHT THINGS RATHER THAN THE OTHER WAY AROUND”
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BIGPROJECTME.COM
PROJECT UNITY The Al Jahra project comprises five phases, including elevated motorways. Once completed it will form a 21km unified route.
Project Name Al Jahra Road Development Project
Project Value $936 million
Project Developer Kuwait Ministry of Public Works
Contractor Arab Contractors Company – Othman Ahmad Othman
Project design and supervision consultants
Louis Berger and Pan Arab Consulting Engineers
ON SITE AL JAHRA ROAD DEVELOPMENT PROJECT
Nearly 1,000 days ago, the Kuwait Ministry
of Public Works announced that it had
reached all the agreements necessary to
announce the launch of one of Kuwait’s
largest ever infrastructure projects.
The Al Jahra Road Development Project is
not just another run of the mill road expansion
project, the likes of which we’ve seen all over the
GCC. Far from it in fact. It is currently ranked
as one of the largest elevated road projects in
the world and given its significance to Kuwait, it
could be one of the most important projects ever
undertaken by country.
The project began construction in September
2010, says Engineer Yasser Boudastour, the pro-
ject engineer appointed by the Ministry of Public
Works to supervise the project.
He tells Big Project ME that work on the $936
million road project started after an agreement
was reached with the firms Louis Berger and the
Pan Arab Consulting Engineers (PACE) to be the
project design and supervision consultants. The
Arab Contractors Company (ACC) – Othman
Ahmad Othman, were appointed as contractors,
he adds.
“Most of the old roads in Kuwait are simple
three lane roads. The Ministry of Public Works
intends to develop these roads. The Al Jahra
Road project will be one of many projects that
will transform these roads into a grand unified
highway for 21 kilometres, which will extend
from Jahra Gate Roundabout to United Nations
Roundabout,” he explains during an interview
with Big Project ME.
“The project will include building, construc-
tion and maintenance of roads and elevated
motorways. It will comprise five phases of
improvement, which will include the major utili-
ties works such as sewage systems, overpasses,
telecommunications, electrical systems and
storm water drainage, amongst other things. It
(the project) is considered to be a solution for
21DECEMBER 2013 MID
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Big Project ME finds out why the Al Jahra Road Development project will be Kuwait’s most important infrastructure project. Gavin Davids reports
“THE AL JAHRA ROAD PROJECT WILL BE ONE OF MANY PROJECTS THAT WILL TRANSFORM THESE ROADS INTO A GRAND UNIFIED HIGHWAY FOR 21 KILOMETRES.”
ELEVATED SOLUTION
ON SITE AL JAHRA ROAD DEVELOPMENT PROJECT
22 DECEMBER 2013MID
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ON SITE AL JAHRA ROAD DEVELOPMENT PROJECT BIGPROJECTME.COM
traffic jams and will address the growing road
congestion crisis,” he adds, pointing out that the
Al Jahra Road Development project will connect
with Kuwait’s other highways in a huge network
that will ultimately help improve traffic safety
and security.
With an estimated 2.25 cars per person in
Kuwait, the need for a modern road network that
can handle heavy volumes of traffic is crucial if
the country is to achieve the aims set out by its
government. In 2004, it was estimated that 85%
of Kuwait’s roads were paved, so clearly the task
ahead for the government remains huge.
As a result, the number of stakeholders
involved in the project are high, with not just
the Ministry of Public Works involved, but also
bodies like the Ministry of Electricity and the
Ministry of Interior. As a result, complications
can arise over the course of the project, as
Boudastour explains.
“For any major project, there are always chal-
lenges you’re going to face, and we face them
every day,” he says. “Especially when it comes
to the coordination needed for any detour
“ACTUALLY, BEFORE THE TENDER, DURING THE DESIGN STAGE, WE GOT ALL THE MINISTRIES AND UTILITIES TOGETHER. THE PROJECT WAS THEN DESIGNED ON THEIR GIVEN MATERIALS (INFORMATION).”
PROJECT PROGRESSn Piers: 258 out of 479
(54%)
n Piles: 3687 out of 4579 (81%)
n Pile cap: 313 out of 499 (63%)
n Detours: 90%
n Diaphragm: 46 out of 250 (18%)
n Segment fabrication: 1805 out of 8395 (22%)
n Segment erection: 817 (10%)
n 10 million safety hours without injuries
n This project leads to a big change in the length of the lanes. After the project will finish it will be extended from 80km -220 km.
A CAST OF THOUSANDSMore than 180,000m3 of concrete has been casted for the project.
Jahra Road Development is one of the largest elevated road projects in the world in which The Ministry of Public Works (MPW) in Kuwait plans to invest $936 million. The expected timeframe is five years to full completion in September 2016. The project’s mainline length is
11.4km comprising three lanes with link roads in each direction and one lane for emergency. The total length of ramps is 7.2km and the total length of service roads is of 17.3km. it also con-tains one 57m long sec-tion of depressed roads having two roundabout bridges.
ELEVATED THINKING
n 80.4% Structures
n 8.6% Others
n 4.1% Electric cables relocation
n 3.4% Water lines relocation
n 3.6% Roads
in traffic. This project is also related to many
ministries, which means a lot of coordination
and official letters that need to be signed before
taking any steps forward.
“Thankfully, we are now in coordination with
all dealers to solve these problems and we’re
trying to manage the traffic.”
With a scheduled completion date of 2015,
the massive project is currently slightly behind
schedule, but Boudastour is confident of making
up the shortfall over the coming months.
“The expected timeframe for the project is
five years. Right now we’ve reached 45% to 47%
of work done. We’re a little bit behind schedule,
but we’re trying to mitigate it and follow the
schedule in the coming months,” he says.
“We’re behind schedule by about 6%, which
is not that big a percentage. But as you know,
we’re dealing with so many services and
ministries. Also, some times, especially when
you’re working underground, you cannot see
what’s there. When you’re doing excavations
and all, you can sometimes find utilities. So we
needed to divert them and for that, we needed
to contact all the ministries to get permission.
That creates a delay. So far, we’ve done all these
things and we just have to have a recovery plan
for this percentage, so as to meet the deadline at
the end of the project.”
Keeping this in mind, the project overseers
have stepped up their efforts to complete their
work on schedule. At present the workforce con-
sists of 2,600 men on site, working in three shifts.
23DECEMBER 2013 MID
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ON SITE AL JAHRA ROAD DEVELOPMENT PROJECT
The project has achieved 8.5 million safety hours
without injuries, he adds, claiming that this is
a result of the team’s commitment to secure all
necessary equipment, such as safety helmets,
footwear and belts for workers to protect them
from injuries.
In addition, workers attend weekly presenta-
tions and lectures to educate them about the
ways to prevent accidents and how to act in the
work areas to stay safe and protected.
At present 80% of the pilings, 15% of dia-
phrams, 45% of abutments, 61% of pile cap,
51% of piers are completed, in addition to
erecting 590 segments that were fabricated in
the precast yard, Boudastour says during the
interview, with a partial handover of the project
scheduled for September 2014, when Phase II
is completed.
Jahra Road will be carried on new pre-cast
pre-stressed segmental viaducts. The precast
segments are short concrete sections connected
together to form the carriageways of the bridges.
These segments are fabricated in pre-cast
yard, which is a large plant fully utilised with
moulding machines and worker’s offices for the
production of the pre-cast segments.
The yard is set up on remote land located
near the Camp Doha areas, with a total surface
area that covers 150,000m2.
It accommodates large-scale pre-casting
facilities such as mould production frames,
different cranes, water tanks, storage and curing
chambers.
Employing the system of segmental pre-cast-
ing provided both production speed and a big-
ger work space in a congested environment. This
ensured the production of the highest quality of
segments, while maintaining colour consistency,
meeting strength requirements and establishing
a bridge that requires little maintenance.
The project engineer explains that the instal-
lation of bridge segments are erected using a
launching gantry that was design especially for
this project.
The gantry weighs 560t and a length of 140m
and is capable of carrying a segment bridge that
weighs 85t and is filed over the bridge.
Two gantries are working and the third will
be installed by the end of the year.
Meanwhile, the cutting bridges are divided
into four categories, with each one manufac-
tured to be installed in the work area; these
segments are formed from four types – each is
erected according to the specific location, and
their weight ranges between 58t to 85t , Boudas-
tour adds.
He’s quick to point out that the complexity of
the project was alleviated by the comprehensive
pre-planning undertaken by all the stakehold-
ers. This in turn has made their job much easier,
though not without complications, he says.
“Actually, before the tender, during the de-
sign stage, we got all the ministries and utilities
together. The project was then designed on
their given materials (information),” explains
Boudastour. “But, even so, when you’re at the
site, it’s different. Sometimes the dimensions
aren’t clear enough or something is different,
so it can happen (that there are delays and
changes).
“But right now, we’re underway in all phases
and we’re going to have a partial handover of the
project if we reach the completion of Phase II
by September 2014,” Boudastour promises. “It’s
going to be going on according to schedule, and
we’ll open other phases in that time,” he insists.
“This project will raise the state of infrastruc-
ture in Kuwait and it will be the first step towards
new modern roads in Kuwait. The government
is expecting it to reduce traffic jams, especially
as it’s located in a central part of Kuwait. It’s the
intersection between a number of hospitals and
Kuwait University and Kuwait Port.
“All parties involved in the project are excited
to see the future of the project and see it achieve
the goals that are planned.” n
ROAD EXISTING FUTURE
LANES ROAD LENGTH AT GRADE LANES ELEVATED LANES ROAD LENGTH
JAHRA ROAD 4 11.3 KM 6 6 11.3 KM
HOSPITAL ROAD 4 0.6 KM 4 4 1.5 KM
GHAZALI STREET 8 0.8 KM 6 6 1.3 KM
AIRPORT ROAD 4 1.0 KM 4 4 1.6 KM
2ND RING ROAD 4 0.9 KM 6 - 0.6 KM
4TH RING ROAD 4 1.2 KM 6 - 1.2 KM
RAMPS - - - 2 14.8 KM
TOTAL LANE LENGTH 80 KM 220 KM
ROAD EXPANSION PROGRAMME
“IT (THE PROJECT) IS CONSIDERED TO BE A SOLUTION FOR TRAFFIC JAMS AND WILL ADDRESS THE GROWING ROAD CONGESTION CRISIS.”
26 DECEMBER 2013MID
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COVER STORY RAOUF GHALI BIGPROJECTME.COM
Raouf Ghali talks to Stephen White about running the international project management arm of Hill International
KING OF THE HILL
27DECEMBER 2013 MID
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COVER STORY RAOUF GHALI
While the University of LaVerne Masters
graduate was instrumental in preparing and
issuing the international tendering procedures
that helped to secure much-needed equipment
at competitive prices for the fledgling Armenian
government; helping to scale-up a country’s
power supply where it was in short supply wasn’t
without its challenges.
“For a while we didn’t have electricity,” he
recalls. “There was an average of three hours per
day. We used whatever we could get our hands
on! We got batteries to keep the computers
running, but we got it done. We got through.”
As he oversees Hill International’s operations
beyond the US market almost two decades later,
he is able to empathise with teams based in far-
flung and remote locations. When talking about
those currently helping to bring power and roads
to Afghanistan, there is an appreciation of the
efforts it takes to be effective.
“Afghanistan is an extremely challenging place
to be. I can understand the difficulties they are
going through. I think it’s much harsher than
what we had to go through,” he explains. “All
these experiences over time add up to providing
certain aspects where you can do your work
much more efficiently.”
The last ten years has seen tremendous growth
for Hill. For the past six years of that decade, Gahli
has served as its president and he reveals that it is
currently earning $300 million in turnover (“from
consulting fees”), and employs a 2,800 strong
workforce. The head office for the International
Project Management arm of Hill is in Athens, it’s a
different and surprising location, considering the
Western Europe/US-centric nature of most global
consultancies. Ghali says that it is a consequence
of its Balkan-centric growth.
“If you look at where we operate, the Middle
East is by far our largest region. Geographically
we also have North Africa (a very important
region for us). When you look on a map, Athens
is right at the entrance to the Middle East,” he
remarks. “It’s right across from North Africa
(Cairo is at centre of our operations there). It’s
also at the heel of the Balkans.”
INTERNATIONAL PLAYERGhali has been instrumental from growing Hill’s PM presence in Europe, the Middle East and Africa.
Raouf Ghali has just stepped off the red-eye
from New York and walked straight into
an interview with Big Project ME at Hill
International’s London offices – a smart,
charismatic and witty interviewee – if he’s jet-
lagged he’s certainly not showing it.
“How did I grow my career?” When asked. “I
started my career, I say, a little bit on the wild side!
I was completely crazy. I went into places that
others didn’t.”
The new countries that emerged after the
collapse of the Soviet Union in the early 1990s
were desperately short of infrastructure and
desperate to modernise. However where most
were daunted by the challenges incountries such
as Georgia, Romania and Bulgaria presented,
Ghali saw an opportunity.
“When I went into the CIS and the Balkans in
1993/94 the infrastructure wasn’t even there to do
business,” he says. “It put things into perspective.
(Construction) can positively impact the
economy; it creates jobs; even after completion
it requires maintenance, operation, etc. Most of
all, you’ve left something behind, a structure for
better living or a production facility, etc.”
For Ghali, the country that arguably best
typifies those early years.
“I started with Hill in Armenia, when Armenia
was pretty much at war with Nagorno-Karabakh,”
he explains.
The repercussions of the conflict over the
Nagorna-Karabakh territory in southwestern
Armenia are still being felt today, and the
experience he picked up there continues to shape
Ghali’s approach to running the International
Project Management arm of Hill, two decades
down the line.
“That was probably one of my best, key years.
Difficult years, but I learned a lot and met a lot
of people,” says Ghali, who was responsible for
project and financial control for procurement
on the European Bank for Reconstruction and
Development-funded 300MW thermal power
plant in Hrasdan. “It went back to the basics.
Relying on yourself – technology wasn’t there,
communication wasn’t there.”
“THERE WAS AN AVERAGE OF THREE HOURS PER DAY. WE USED WHATEVER WE COULD GET OUR HANDS ON! WE GOT BATTERIES TO KEEP THE COMPUTERS RUNNING, BUT WE GOT IT DONE. WE GOT THROUGH”
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The Middle East contributes 40% to 50% of
the Group’s annual turnover with other markets
growing in importance to complement Dubai and
Qatar, where it first made its mark.
“Now the driving force is really Abu Dhabi,
Saudi Arabia, Oman and Qatar. Four points/
markets that are very strong. And also very
different. In the Kingdom, as an example, we’re
involved in healthcare, infrastructure (with our
recent win in rail), and education facilities. In
Qatar we are seeing more and more large projects
in the infrastructure sector rather than the high-
rise buildings we would traditionally see.”
Expanding on Qatar, he reviews the impact
Hill International has had on the country.
“We are quite involved in Qatar,” he enthuses.
“We went through a major development (stage)
and now Qatar is upgrading the infrastructure.
We are working on the Green Line of the Metro,
the Qatar National Museum; and continue to
have several private developments. There is still
quite a lot of local private money being invested –
and we are confident it is sustainable.
“You cannot do all that development for just
the FIFA tournament. Even with pre-trials and
everything else it is only going to be a three-
month period. It is the post-games period (which
is the most important). Qatar has a plan of how
they are going to sustain this expansion – they
also need the infrastructure to go with it.”
Oman, often ignored by a UAE and Saudi-
centric media, is another market that excites.
“There’s a lot of activity there: it’s a totally
different ball game. We are working on the
airport, on hotel development; we’ve just been
awarded a project to support the Minister of
Defence and we’re also participating on Oman
rail,” he reveals. “We’re still in the evaluation stage
but we’re hoping that they will finalise it by the
end of the year or the first quarter of 2014.”
Oman is a major component in the
establishment of a Gulf-wide rail network but has
slipped behind the efforts seen in Qatar (Q-Rail),
the UAE (Etihad Rail) and Saudi Arabia with its
investment in high speed inter-city rail.
“Once we, or whomever else, gets on board,
they will need to start looking at a realistic
“WE ARE LIVING IN SOME EXCITING TIMES. I STRONGLY FEEL THAT WE’RE SEEING A GOOD SEVEN TO EIGHT YEARS OF PROSPERITY AND A LITTLE BIT OF PEACE, I HOPE!”
schedule,” he says. “You can open certain
segments of the rail (for instance), it does not
have to be the entire corridor.
“I think mass transport has been ignored
for a very long time in the Middle East and the
realisation that you need it to become sustainable
as a country and an economy is starting to
come. Mass transport never used to be a feasible
profitable business. It requires volumes and
there is no alternative for long-term viability and
environmental constraints.”
This is especially true in newly created
urbanised areas where fuel is still cheap. How do
you sell it as a proposition?
“Traffic. Time, convenience and
environmental protection. If you are going to be
travelling between one city to the other, and you
have to go by air, you need to be there one hour
before; you land at the airport; and it is usually
way out of the city – and you have to drive back
in. Whereas a train can take you from centre to
centre. Look at Paris-London. Who would fly to
Paris now from London?
“We are building some of the great airports
of this century, right now. There’s Dubai, NDIA,
Oman, etc. And you’ve got Midfield Terminal too.
We are part of the CM team on that as well.”
When people see the word consultancy, they
often imagine teams of desk jockeys, but you
get the impression that, as an organisation, Hill
International is much more than that.
“We are very well engaged in managing
activities on all stages,” says Ghali. “It depends on
what our scope is and this varies from client to
client, from project to project. We can be involved
in the master planning and the implementation.
Sometimes we come in at a much later stage.”
While most of the global players in design
and project and construction management
that are active in the region are able to draw on
expertise from teams based across their offices,
Ghali has encouraged deeper involvement within
Hill International. The company even runs its
own peer review system which frequently sees
teams drafted in from Europe to probe, analyse
and advise on projects in the Middle East – and
vice versa. This cross-fertilisation of ideas and
practices is essential as Hill International strives
to push the quality of execution upwards.
“You’re being reviewed and the next time you
are reviewing somebody else. It not only keeps
everybody on the edge but it is an efficient way of
sharing knowledge amongst teams,” he explains.
“Take Latvia Library, for instance, and the
Grand Egyptian Museum: two different worlds
but yet there are a lot of things that are in
common, the uniqueness of the building, for
example. Latvia Library, for instance, is not just a
library but they have put a lot of old artifacts such
as old books, etc,” he continues. “That means
that you have to have climate control rooms (for
example). It has to be user-friendly and well-
engineered. Both are public buildings. Both have
“I think in general 2014 is going to be a year where we will see economic improvement globally. Spain is really waking up; there’s been a lot of transactions; the banking system is starting to show signs of life again. I’m not telling you it’s going to be booming, but the contraction is stopping. It’s been six/seven years since the recession started, so this is not going to be an overnight change. But prices of assets have come down; there is a huge amount of cash that needs to be invested and investors are eager to get back in the game early to take advantage.
“You’ve got markets like Egypt – if it continues to stabilise, you’ve got the UAE and Kingdom pledging money that has to go into construction – you’ve got Libya which I think will hopefully start off in 2014.
“Then you’ve got Iran that seems to be coming towards the western countries. You’ve got scepticism but on both sides. I think it’s positive however. The tension that has been clouding us over the last decade is lifting. If both sides start showing some trust and faith, then things can start to get better. Now how does that effect oil prices? I’m not an expert, but logic would show that is going to be pressure on prices coming down.
“Look at what Iraq has done. We have just signed a $53 million contract with the government of Basra. The contract scope is to review Barsa’s masterplan needs and implement them. We expect a mixture of projects to include educational facilities, roads, bridges, etc. With Iran calming down. Everything calms down. We are living in some exciting times. I strongly feel that we’re seeing a good seven to eight years of prosperity and a little bit of peace, I hope!”
GHALI LOOKS AT THE YEAR AHEAD
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high security – and yet you have to allow free
movement and flow for the guests. There are a lot
of common similarities people would not always
think about.”
The peer review meetings bring the top three
people from two or three projects together with
Ghali and the regional manager joining the
meeting: “The team comes in and present the
project status and the major challenges they are
facing. Then, as a team ,we explore ideas: have
you tried this?, or, we had a similar problem and
we found this solution worked.”
With full site visits frequently required and the
removal of key personnel from projects essential,
it would be understandable if the peer reviews
placed drag to the pace of construction. Rather
than stretching out the project management
process, Ghali argues – convincingly – it has to be
said that the reverse is often the case.
“It speeds things up. You find out that the
guy – and I use this only as an example - who
handled the Qatar Museum is talking to the guy
on the Egyptian Museum and asked whether he
had a similar problem, do you know of somebody
that can help? Yeah, I’ve got somebody on the
team. Can you spare him for a ten days? Sure.”
Backing up the project teams is a technical
core team for each region. Ghali describes them
as the ‘back-office’. They act as another level to
Hill’s quality control.
“They shadow most of the difficult projects
when they are in the early design stage. They have
seen a lot of these projects and bring in a lot of
lessons learned to the table,” he says. “This is part
of our service – we typically don’t charge for it. It
is also part of our own quality plans.”
Creating continuity and understanding
between the teams has been an asset as the
International PM Group has grown. He adds for
any given country, Hill has now reached a size
where it has enough staff from that country to
form the nucleus of its project teams.
“This is the starting point and then we start
slowly recruiting. In Turkey, for example, we’ve
probably got a good 60 to 80 Turks working for us.
If we get a new project then I can transfer them
back into Turkey with international experience
and the “Hill culture”.
Hill’s progress in the Middle East is notable
for its two centre beginning. Straddling both
Dubai and Doha, Ghali says that the move was
a deliberate attempt to mitigate against risk.
The company also started pushing into North
Africa in 2006 just as every project manager and
consultant with a passport descended on Dubai.
“Never have your business be dependent on
any one specific location or client,” he says. “I
always try to go where everybody else is not! In
2006, everybody was flocking into Dubai and
the UAE. We were there – and I thank my lucky
stars we were – but that’s when we made a strong
push for North Africa. If everybody is going to
one place, it is going to get crowded and you
need to be thinking of going somewhere else. If
you’re in at the beginning you take a lot of the
work initially but then you share. That’s how the
market moves.”
He adds: “We’ve been quite successful in
spreading throughout the Middle East; very
successful in spreading out in North Africa. We
are present in all of the North African countries
now with the exception of Tunisia where we are
now looking at entering. We’re doing very nicely
in Algeria with great growth potential.”
He was told about Dubai’s successful Expo
2020 bid as he was leaving New York. He believes
the win is well deserved.
“It’s very, very exciting. I believe they already
have infrastructure for it. Nothing was really
moving until they secured bid, now it’s going to
be like the horse races where everybody starts
(gestures to signify the start of the race). Look at
what Dubai has done. The 2020 win is a vote of
confidence by the international community that
the international markets still believe in Dubai. It
has become a major city of the world over the last
15 years. They’ve done a great job so far, and I’m
sure they will do a great job of this event.” n
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On 25 November, 2013, Big Project Middle East celebrated the achievements of
the regional construction industry in a
glittering ceremony at Jumeirah Emirates
Towers Hotel.
The Big Project Middle East Construction
and Sustainability Awards of Excellence 2013
saw more than 400 industry professionals from
all across the Middle East gather together to
celebrate the achievements of more than 60
nominees across 17 categories.
The awards saw some of the region’s most
exciting and dynamic construction projects and
A CELEBRATIONOF EXCELLENCE
Big Project ME hosted its annual awards dinner at the Jumeirah Emirates Towers Hotel, bringing together the great and good of the regional construction industry
BIG PROJECT ME AWARDS 2013
“WE DON’T WANT TO BUILD JUST ANYTHING, WE WANT TO BUILD BUILDINGS AND STRUCTURES THAT DISTINGUISH THEMSELVES FROM THE REST OF THE MARKET”
firms recognised for their contribution towards
the growth and development of their industry,
while the sterling work done by individuals in the
industry were also recognised.
Held alongside the biggest The Big 5 show
in recent memory, the awards were perhaps
symbolic of Dubai’s triumphant return to the
spotlight of global construction.
31DECEMBER 2013 MID
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33DECEMBER 2013 MID
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ICONIC STRUCTUREOF THE YEAR WINNER: ETIHAD TOWERS BY HILL INTERNATIONAL
The winning structure is a five-tower colossus that has
quickly become one of the defining landmarks of the
Abu Dhabi skyline.
Not only is it a good looking structure, it is also a
great example in how to build at scale.
Under the guidance of the project management
consultancy: the project owner, contractor, facility
manager, hotel operator, district cooling services
provider, bank/financier and real estate/property
manager were all involved from the initial planning
stages; resulting in a successful project
“We’ve been very successful building some of
the landmark structures in the region,” says James
Duncan, vice president of Hill International.
“We want to build on our successful presence in
Abu Dhabi, which we’ve had for the last 25 years.
There is a lot of exciting news coming forward,”
he tells Big Project ME, confidently predicting a
fruitful and exciting few years ahead for the project
management consultancy as it looks to ride the wave
of optimism generated by Expo 2020.
OUTSTANDINGDEVELOPMENT OF THE YEARWINNER: SOWWAH SQUARE – GOETTSCH PARTNERS
The winner of this year’s outstanding development of
the year features over 290,000m2 of office space and
clocks in at a mammoth 450,000m2 in total area.
It is also the new headquarters for the Abu Dhabi
Securities Exchange, making it a central hub for
business in the UAE capital.
Surrounded by four office towers and overlooking
the Abu Dhabi coastline, Sowwah Square certainly
possess the ‘wow’ factor to be called ‘Outstanding
Development of the Year.’
“It’s outstanding that a commercial development has
been recognised,” says Matthew Burgland of Goettsch
Partners after collecting the award on the night.
“It’s been about a year since the tower was
established and it’s now central for business in Abu
Dhabi,” he adds.
“As partners, we’ve worked extremely hard in Abu
Dhabi and the quality of projects that we’ve done
speaks for themselves.”
BIG PROJECT ME AWARDS 2013
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ENERGY EFFICIENCYPROJECT OF THE YEAR
WINNER: PETROLEUM DEVELOPMENT OMAN
Petroleum Development Oman is currently installing a series
of systems inside and outside a managed a 35% reduction in
interior water use and a 50% reduction in potable water use as
it heads for LEED certification.
It is also using Xeriscaping, a landscaping method that
makes routine irrigation unnecessary, setting a standard for
large educational campuses across the region
“This award is a great achievement for the project team.
The whole industry is aiming for sustainability and this
new school for the company addresses all the aspects of
sustainability, such as water conservation, landscaping and
creating a better future. We are looking to work on master
plans that include more houses following a similar design.”
CIVIL DEVELOPMENTOF THE YEARWINNER: CHINA STATE CONSTRUCTION ENGINEERING CORP – IMPROVEMENT OF EMIRATES ROAD
The winner has made a significant impact to the completion of
the city of Dubai’s aspirations of becoming a major logistical
hub as well as putting down the groundwork for growth
potentially spurred on by the EXPO 2020.
The billion dirham work included 33km of roads, two
interchanges plus a series of upgrades
“This project is not just ‘science’. We believe it’s
confirmation of the effort we’ve put in as a team, with the
client, RTA and the consultant, SBS Smith,” says Yu Tao,
president and CEO of CSCEC Middle East.
WINNER: EMPOWER
By tackling the challenge of offering green power and water to
a large community, Empower has helped save 32.1 megawatts
and 147,000 tonnes of CO2 per annum in Dubai.
Empower’s work on DIFC’s district cooling systems was not
a coincidence, CEO Ahmad Bin Shafar tells Big Project ME.
“I strongly believe that our company is always focused
on improving our work, on focusing on research and
development,” he says.
“We recognise ourselves doing things in a way that is better
than the way that others are doing things. We look to save
time, save costs and save management. That’s how we see
ourselves. We don’t want to do things the regular way. We
want to do it in a better way.” BEST WATERCONSERVATION PROJECT
BIG PROJECT ME AWARDS 2013
CONSTANT FOCUSAhmad Bin Shafar says Empower’s success has been built on constant focus on improvement.
36 DECEMBER 2013MID
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WINNER: AECOM AND THE PASSIVHAUS VILLA
The judges chose to reward a company and project that can
be replicated and scaled up across the region for this year’s
Green Building Project of the Year award.
Drawing on engineering and design from Germany, the
result is an ultra-low energy building that requires little energy
for space cooling and is the first of its kind in Qatar.
“There has been growing awareness and momentum
lately when it comes to sustainability,” says Jason Smith,
environmental planner, Design+Planning, Abu Dhabi, for
AECOM. “It’s not just ‘nice to have’, it’s become a must-have.”
“I think what seperated us from the other nominees was that
we had a small scale project that was easily understood,” he
tells Big Project ME. “The project we’ve won the award for will
be the benchmark for other projects.”
DEVELOPER OF THE YEAR
GREEN BUILDINGPROJECT OF THE YEAR
WINNER: SINO GULF
This year’s winner is a developer who has made its mark on
the Abu Dhabi skyline by bringing to fruitition a number of
‘A-grade’ commercial properties that can happily claim to be at
close to full occupancy.
“We’re very happy to win this award,” says Andrew Clout,
managing director of Sino Gulf. “We’re sure we’re deserved
winners.”
“(This award) is about what we want to achieve going
forwards, in terms of more Grade A buildings in Abu Dhabi
and Dubai and other markets,” Clout adds.
“We don’t want to build just anything, we want to build
buildings and structures that distinguish themselves from the rest
of the market. And hopefully, we can come back to win two or
three awards next year!”
BIG PROJECT ME AWARDS 2013
GROWTH PLANSMustafa Alper Alhan says Tabanlioglu Archi-tects will be focusing more on Dubai in 2014.
WINNER: TABANLIOGLU ARCHITECTS
Tabanlioglu has successfully executed the design for projects
across the entire Middle East region.
The architecture firm has worked on a wide range of
building types from housing, offices, mixed-use, public and
cultural buildings and industrial projects to high-rise.
Having recently established an office in Dubai, the firm
recently won its first project in the Emirate, the Crystal Towers
on Jumeirah Beach Residence Walk.
“It feels good to be awarded,” says Mustafa Alper Alhan,
project services, Dubai Representatives Office. “This is our first
Dubai project so it’s a big surprise.”
“We’ll be focusing more on Dubai in 2014 and will also
be looking to get more projects in the region started. We have
the Qatar Lusail Museum in Doha as well, so we have plenty
to do,” he adds. “While 2013 was good, we expect more in
2014.”
ARCHITECT OF THE YEAR
37DECEMBER 2013 MID
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WINNER: ASTAD
ASTAD has contributed the only LEED platinum student housing
in the world which features two complexes with a total of
twelve (12) buildings remain to date.
They also represent one of the highest concentrations of
independently registered LEED platinum buildings in the world.
“It’s a great feeling to win this award. It counts as one of
our achievements for this project,” says Ibrahim Faisal Al
Haidos of the Qatar Foundation.
“This is the vision of the Education City, to have a world
class sustainabile city. We are going to have minimum
certification for our projects and this project is trying to
promote the message of sustainability to students.”
DEVELOPER OF THE YEAR
WINNER: HYDER CONSULTING
The winning consultancy is truly active across the region and
now counts on the Middle East for almost a third of its total
business.
While other practices are moving more and more into
project management, this consultant has concentrated in
enhancing the region’s infrastructure bringing global knowhow
to the local market.
“We measure ourselves against our peers. There are a lot
of good consultants out there,” says Mario N Pishiri, managing
director – Property, at Hyder Consulting. “Winning this award
is testament to Hyder’s position in the market place.”
“With Expo 2020 awarded, the World Cup in Qatar,
and Saudi Arabia’s development plans, there are plenty of
opportunities to succeed, but our focus will remain on our core
competencies of engineering and architectural project delivery,
within core territories with our key clients and partners.”
WINNER: ALEC
The winner of this year’s award scored multiple successes as it
series of projects reached completion, including the completion
of the Arrivals and link tunnel within Abu Dhabi International
Airport. Furthermore, the contractor passed three million man
hours without any lost time due to injury on Concourse 4 in
Dubai International Airport.
It sets a wonderful example of putting safety first and still
delivering high quality projects.
“As a company, we’ve achieved good understanding of
what our clients need. We do it in a simple way, and not make
it complicated,” says Kobus Dreyer, commercial director at
ALEC, the Dubai based contractor.
“2013 was a good year for us, but it could have been
better. There’s a lot of positive sentiment about 2020 and we’re
in the final process of signing up some really big projects. It’s
shaping up to be an exciting time for us.”
SUSTAINABLE SOLUTIONOF THE YEAR
CONSULTANT OF THE YEAR
CONTRACTOR OF THE YEAR
BIG PROJECT ME AWARDS 2013
GLOBAL KNOWHOWMario N Pishiri, MD of Property, says Hyder’s global excellence base has kept it ahead of its compeition.
38 DECEMBER 2013MID
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WINNER: ETA STAR ENGINEERING AND CONTRACTING
ETA Star Engineering and Contracting has delivered and is
delivering world class projects as per the clients requirements
and contributed to client success, working alongside some of
the GCC’s biggest main contractors such as AECOM, Hochtief
and on projects for Barwa and Lusail.
“ETA Star has had a great year in Qatar,” says Ashok
Agarwal, senior executive director at ETA Star Engineering
and Contracting. “This award is a kudos to the people involved
in the making of iconic structure. We are one of the biggest
contractors in the Middle East and India, so we’re hoping for
many such awards in the future!”
WINNER: CONALL DOHERTY FROM BURO HAPPOLD
Doherty has only been a structural engineer for three and
a half years but has been described as an integral member
of the site supervision team at the Louvre, Abu Dhabi and
has ongoing involvement in the design and construction of
a number of projects in the King Abdullah Financial District,
Riyadh, Saudi Arabia.
“I think this award is generally testament to the
opportunities that are on offer in the region. It’s been fantastic
coming here as a young engineer, the projects and experience
that they can provide, along with the general exposure, has
been fantastic,” enthuses Conall Doherty. “It’s such a privilege
and I’m quite shocked to be presented with such a prestigious
award.”
WINNER: KEO CQS
Comprising a team of 1,700 staff which have provided pre
and post contract cost consultancy services on a series of
buildings, infrastructure projects, KEO CQS also has the
distinction of working on the first major stadium in Qatar.
One of our selling strengths is that we’re part of a
multidisciplinary practice. So when we’re working as quantity
surveyor’s within KEO, it means that we just have to go to
the next desk to get the information. but also, acting as an
independent quantity surveyor, we’ve always got backup
technically. If we don’t get answers, we can go to our own,”
says Mark Grogan, manager – contracts and quantity
surveying services division, at KEO International Consultants.
“We’ve got great depth in Middle East experience,” he
adds, highlighting it as a reason for KEO’s regional success
QUANTITY SURVEYOROF THE YEAR
MEP CONTRACTOR OFTHE YEAR
YOUNG ENGINEER OFTHE YEAR
BIG PROJECT ME AWARDS 2013
YOUNG ACHIEVERConall Doherty, from Buro Happold, picked up the award for Young Engineer of the year.
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40 DECEMBER 2013MID
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WINNER: HILL INTERNATIONAL
This year’s award was given to a major player in the market
that has delivered the very best project management services
to large scale developments. Hill International has received
new commissions to provide services for some exciting new
developments, including the Qatar National Museum, Jabal
Omar Development, Riyadh Metro, Qatar Metro Green
Line and Abu Dhabi’s Midfield Terminal in 2013 and most
impressively, managing the Oman International Airport project
which is well on track to reach its completion date.
“I hope we can keep on performing,” says Mohammed Al
Rais, managing director of Hill International. “Our next focus
will be on 2020.”
WINNER: ANDREAS GEORGIOS ILIOVITS OF MOSART
Iliovits led his team at Presidential Palace of Abu Dhabi which
were subcontracted to produce the natural stone for the
project. Dealing with high volume in a short time of execution,
the winner demonstrated the ultimate in quality control and
project management.
“It’s been very hard work,” Iliovits says. “Especially in the
award for project management. It’s been a very sophisticated
job, with very big quantity of stone. We’ve very happy to be
here and to have the award.”
“We’re fully booked till the end of 2015 with residential
and other palaces, as well as with work on pipelines for Abu
Dhabi International Airport and other prestigious projects.”OUTSTANDING PROJECT MANAGEMENT CONSULTANCY
OUTSTANDING ACHIEVEMENT IN PROJECT MANAGEMENT AWARD
FAMCO was awarded the Construction Equipment Company of the Year by Big Project ME’s sister publication, Construction Machinery Middle East, in recognition of its constant efforts to improve people, processes and machines. It has acquired businesses, invested in new facilities, expanded to new countries and also improved principal’s offering for the region.
“We did a great job this year. All the plans and goals we had, we put them into reality. We’re on the right track and we’ve invested a lot in our facilities, people, expansions and acquisitions. It’s been a year to remember for FAMCO,” says Mamdooh Diyab, divisional manager, Rental and Leasing Division at FAMCO.
“There are some plans to be announced soon, and also the East Africa business (to focus on).” n
BIG PROJECT ME AWARDS 2013
QUALITY CONTROLAndreas Georgios Iliovits of MosArt, poses with his award.
www.alec.ae
AREAS OF OPERATION:UAE | OMAN | QATAR | MONTENEGRO
AIRPORTS | THEMED PROJECTS | HOTELS | RETAIL | COMMERCIAL | RESIDENTIAL | HOSPITALS
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Big Project ME finds out why Turkey’s construction is determined to crack the GCC market and why they’re confident of doing so. Gavin Davids reports
THE YOUNG TURKS
Of course, we’ve since seen a sea-change in
the way projects are undertaken, with increased
government regulations and greater caution from
both developers and contractors. And while the
situation has undoubtedly improved, we still see
occasional differences of opinion and conflicts that
need legal recourse.
What most construction stakeholders put this
down to is a lack of understanding between all
parties. While they may speak the same language
and share the same objectives, it’s often difficult
for contractors and developers to relate to one
another.
However, it now appears that there is a segment
of contractors and construction companies that
have noticed this gap and are rushing to fill it.
Ever since the GCC began its building
boom back in the late 1990s and early
2000s, the region has become something
of a honeypot for the global construction
industry, with both the international giants and
the regional minnows making a beeline for the
cities of Dubai, Doha, Riyadh and Jeddah.
Following this surge in investments from
the region’s governments, there have been the
inevitable problems that crop up when the pace
of construction reaches warp speed. When this
culminated in the collapse of the residential
market bubble and hundreds of delayed
and ‘on-hold’ projects it became clear to the
authorities that the old ways weren’t working
any more.
Having already snapped up some of the most
prestigious mega-projects in the UAE, Turkish
construction firms are well on their way to making
themselves the preeminent force in the regional
construction market.
A recent report published by a senior
researcher at the International Institute of
International Political Studies found that since the
early 2000s, the relationship between Turkey and
the Gulf states has improved significantly, with
cooperation developed in a number of domains.
One of these domains is the construction
industry, says Valeria Talbot, the senior researcher
at ISPI who wrote the analysis.
With Turkey being the second largest
exporter of construction in the world (after
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TURKISH DELIGHTThe GCC is considered the next major growth market for Turkey.
“TURKISH PEOPLE ARE MORE FLEXIBLE THAN EUROPEANS WHEN IT COMES TO TOUGH, DIFFICULT CONDITIONS. IT DOESN’T MAKE US AFRAID”
What has been noticeable is that the trade
relationship between the GCC and Turkey is one
that flows both ways, with $6.5 billion invested
from the GCC into Turkey, with the UAE leading
the way with 56% of the investment, a report by
the Oxford Business Group has said, quoting the
National Commercial Bank of Saudi Arabia.
Interestingly, Turkey’s investment into the GCC
has arguably been more significant, with the UAE
alone receiving $6 billion.
Leading this investment charge has been the
construction sector, which has zeroed in on the
huge number of infrastructure projects that are in
various stages of development.
Bora Can Yildiz, president of EID Construction,
tells Big Project ME that it’s no surprise that
the GCC has emerged as one of Turkey’s main
markets, given the long history between the
country and the region.
“We have two faces, an Asian face – a Middle
Eastern face – and we have a European face.
China), there has been a growing sense that the
GCC could be the next major growth market for
the Eurasian state.
“In an era of euro zone crisis and trade
contraction with the European Union – which
is the main Turkish trade partner and source of
foreign direct investment – Middle Eastern markets
represent a significant alternative for Turkey,”
Talbot explains in her analysis.
“Trade volume with Gulf countries, and the
Middle East in general, is expected to increase
as economic and trade relations have great
potential to be capitalised on, also taking into
account the demographic growth that both
Turkey and Saudi Arabia, the biggest market in
the GCC, are experiencing.”
We used to live together with our brothers for
hundreds of years. So, for all Turkish companies,
including construction, machinery, export,
agriculture – whatever – the GCC is of big interest,”
he explains.
“Although Turkey has a strong relationship
with the European Union, we were not accepted
in ‘the club’ in previous years and we were always
on hold. This gave Turkey a chance to remember
what it had forgotten before, a chance to turn back
to its roots.
“So, we’ve grown our economic relations over
the last two decades with the Middle East, and this
has brought fresh and strong economic growth to
Turkey,” Yildiz asserts.
The figures bear this out, with estimates
showing that there are some 500 Turkish
companies that have operated in Saudi Arabia,
where in the first half of 2012 they worked on
projects worth $12.1 billion. Meanwhile, in Qatar,
by the end of last year, Turkish firms had carried
out projects worth another $12 billion.
That’s not all. Now that work on the World Cup
projects has begun, there has been significant
interest from Turkish construction firms in the
gas-rich Gulf state.
Projects estimated to be worth between $25
billion and $30 billion are up for grabs over the
course of the next decade, the president of the
Turkish Contractors Association (TCA) says.
“Considering Qatar’s share among Turkish
contractors’ business volume has been around 5%
for the past 40 years, according to an optimistic
scenario, it is possible to estimate that Turkish
contractors will undertake a total of $25 billion to
TURKEY AND QATAR:n $200 billion
Qatar infrastructure investment ahead of FIFA World Cup 2022
n $1 billion Total value of Turkish contracts in Qatar (2012)
n $25-$30 billion Projected worth of construction projects for Turkish firms ahead of FIFA World Cup 2022
44 DECEMBER 2013MID
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$30 billion worth of business in the Qatari market,”
Emin Sazak says.
As mentioned previously, Qatar was already an
important market for Turkish contractors looking
to expand their overseas presence, as evidenced by
Qatar’s 5.2% share among the projects undertaken
by Turkish contractors between 1972 and 2012.
However, by the end of 2012, the total value of
Turkish contractors’ projects approached $1
billion, Sazak says.
Qatar’s infrastructure investment spending
ahead of the FIFA World Cup in 2022, estimated
by leading professional services group Deloitte
to reach around $200 billion, has opened up new
opportunities for other Turkish business people
as well.
The Qatari government has already invited
Turkish contractors to participate in the
construction of a number of infrastructure,
stadium and hotel projects planned for the giant
international event.
“Frankly, the UAE, Qatar and Saudi Arabia are
the most promising markets for us Turkish firms,”
says Burak Kizilhan, the business development
manager for AE Arma-Elektropanҫ, a Turkish
MEP firm that has worked on a number of major
projects in Dubai.
“We’re looking to be awarded mega-projects
and for the last few years, only these countries
have a lot of them. Apart from that, there are of
course a number of Turkish companies who are
active in Kuwait, Oman and Bahrain, but it is these
(first) three countries that are the most important
markets for us.”
Yildiz agrees with this and adds that from a
personal point of view, moving to either Dubai or
Doha made sense for his firm as it not only gave
them access to the three major markets in the
region, but also allowed them to set up a base from
which they could target other expanding markets,
such as Iraq and North Africa.
“We didn’t want to stay only in Turkey, we
wanted to take our business outside. We had
projects in Kazakhstan, Russia and recently, in
Libya. But then we went to Basra City and we
began to grow there. We now have $250 million
worth of ongoing work in Iraq,” he explains.
“What we did in previous years was that
we opened a contact office in Dubai and we
did try to manage our relationships. We’re still
doing that through our Dubai offices. It is a good
base for us, because not only are there Middle
Eastern companies (there), but also international
companies that are working in the Middle East,
they have their bases there. So it’s very easy to
communicate and carry on the relationship with
these countries, from Dubai.”
So what is that allows Turkish firms to succeed
in the GCC? Both Yildiz and Kizilhan have
strikingly similar theories on this.
“Actually, everybody asks me this question,”
says Kizilhan. “First of all, it’s our culture. That
is, Turkish and Middle Eastern culture. That’s
important for the construction industry, where
you’re dealing with manpower and not with
computers,” he explains.
“The most important thing is that we can
literally decide in seconds. We don’t deal with a
lot of paper, we focus on the construction on the
operation. We finish earlier than others and you
can see examples of this all across the GCC.”
Yildiz points out that Turkey’s biggest natural
resource is its pool of young, educated manpower
that is ambitious and flexible enough to work in
conditions that might phase older, more cautious
competition.
“We have a very big body of educated
manpower in Turkey, and this competitive
environment of construction, and the international
expertise gained after the 70s and 80s has taught
Turkish firms to be competitive, to be fast and to
work with a young organisation. When we brought
this experience to the Middle East, it helped and it
worked,” he asserts.
“Turkish people are more flexible than
Europeans when it comes to tough, difficult
conditions. It doesn’t make us afraid. In any part
of the world that you go to, in the Middle East,
in North Africa, in Mid-Asia, you’ll find Turkish
companies and especially Turkish construction
companies, because of their challenging, brave
approach and their ability to adapt.” n
Dubai-based real estate developer Damac Properties said it has awarded a $288 million contract for the construction of a hotel complex to the Dubai branch of Turkish builder TAV Construction.
As the main construction contractor for the project, Dubai-based TAV Tepe Akfen Investment Construction and Operations will build the complex, including a luxury hotel and serviced residences, in the Burj area of Dubai in 33 months, Damac Properties said in a statement.
This is the largest single contract that Damac Properties has awarded for one of their projects.
TAV WIN
UNDERSTANDINGBurak Kizilhan says that shared culture is important for an industry dealing with “manpower not computers”.
TURKEY AND QATAR:n 70% increase
in H1 2013 Turkish building and contracting sector
n $11.6 billion in H1 2013 Total Projects value
n $27.2 billion Value of projects realised in 2012
n 101 Countries served by Turkish construction
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MASTER DEVELOPERS BIGPROJECTME.COM
Big Project ME talks a number of master developers in Dubai to find out how the real estate market is going to change in the wake of the awarding of Expo 2020. Gavin Davids reports
OVERCOMING FEARS
Prior to the announcement that Dubai
would be the host city of the World Expo
in 2020, the common consensus was that
the city’s real estate market would see a
significant upswing in terms of valuation and
pricing.
While it can be argued that this was always
going to be the case, with the market already
climbing back up after the collapse in 2008, it’s
equally difficult not to say that the Expo will have
a major impact on the market.
With hundreds of thousands of jobs expected
to be created over the course of the next seven
years, across all walks of life, there are going
to be a lot of people in Dubai flush with cash
and looking to spend it. This obviously hasn’t
gone unnoticed, and already the rumours and
whispers about rent increases and property
prices have begun. So prevalent were these
concerns, the International Monetary Fund
(IMF) was compelled to issue a statement
warning Dubai’s government to make sure its
property market is being driven by ‘fundamental
factors’ and not speculation.
“When you begin to see very rapid increases
in any asset prices, then you just need to be
prepared to act,” says Masood Ahmed, the IMF’s
director for the Middle East and North Africa.
With housing prices in the emirate jumping
by more than 20% over the last year, perhaps
“LOOK AT THIS MARKET WHEN IT WAS PREMATURE, YOU HAD A LOT OF SPECULATORS, A LOT OF RISK ELEMENTS. TODAY, THE WHOLE SITUATION IS DIFFERENT”
47DECEMBER 2013 MID
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prices,” he explains. “I think, between 2010, 2011
and the growth in 2012, the market once again
found its feet when people got out of the fear
psychosis and we moved towards fair value.”
It’s an interesting school of thought, and
one that real estate agents appear to agree with.
According to a Cluttons report, the buoyancy in
Dubai’s residential market persisted through the
third quarter of this year, with average capital
values rising by 8%, following on from the record
23% growth in values in the second quarter.
The latest increase leaves values 25.7% below
the Q3 2008 market peak, 47.6% above the bottom
of the market in Q2 2009 and 52.3% higher than
this time last year.
Meanwhile, the emirate’s rental market has
also continued to record positive growth, albeit at
a slower pace than that experienced during Q2. In
Q3, average residential rental values rose by 3%,
following on from the 8.2% increase in Q2.
“Looking forward to the end of the year, with
Dubai winning the rights to host the World Expo
in 2020, we expect to see heightened investor
interest as Dubai’s real estate recovery drives
further inward investment, particularly from the
GCC region and broader Middle East,” the report
explains.
“We have already seen this trend materialise
in the results of our 2013/14 International Private
Capital Survey, with HNWI from Manama
and Muscat favouring Dubai over London
as a primary global real estate investment
destination.”
Mat Green, head of research and consultancy
for the UAE at CBRE Middle East, points out
that the last edition of the Expo, held in 2010 in
Shanghai, attracted around 73 million visitors, a
record for the event.
“The USA pavilion alone attracted over 7.3
million visitors during the six month period, more
than Dubai’s total hotel guests during the whole
of 2007,” he says in a CBRE report.
“However, according to Chinese Government
figures the vast majority of visitors to the Expo
“WE ALL TALK ABOUT THE CRISIS IN 2008, BUT JUST AS THE BOOM WAS EXCESSIVE, THE FALL WAS ALSO EXCESSIVE. PRICES FELL FAR BELOW FAIR VALUE BECAUSE OF THE PSYCHOLOGY OF FEAR”
the IMF is right to warn of the risk of another
‘property bubble’ being formed.
Further compounding fears after the
Expo announcement was that the massive
megaprojects being planned and announced
would cause prices to be raised as landlords
and developers took advantage of the rekindled
interested in the market.
Therefore, Big Project ME thought it would
be interesting to hear from master developers
themselves to find out how they view the
situation and how they intend to react to it.
Kabir Mulchandani, the CEO of SKAI
Holdings, is a man who has seen it all, having
faced allegations of fraud at the height of the
collapse, to rebuilding his empire with mega
property deals worth more than $1 billion. His
latest venture is the $1 billion Viceroy Dubai
Palm Jumeirah.
He tells Big Project ME that what’s happening
with the property market isn’t so much a revival
as it is a natural correction.
“Obviously there are many reasons that
contributed to the revival, but let’s start with
where the problems were. We all talk about the
crisis in 2008, but just as the boom was excessive,
the fall was also excessive. Prices fell far below
fair value because of the psychology of fear. Just
as greed tends to add irrational exuberance, the
excessive fear caused an excessive depression of
FINDING ITS FEETKabir Mulchandani says that the market has moved towards fair value for all.
BIGPROJECTME.COM
event were Chinese nationals, with only roughly
6% of the estimated 73 million visitors were
actually foreign tourists.
“Whilst this is still a significant number of
visitors, it does suggest a need for caution in
respect of Dubai’s future development plans
which must remain anchored to actual supply
and demand dynamics, rather than building just
for a single event,” he warns.
Mulchandani adds that while Dubai’s growth
has been compounded by the UAE recovering as
a whole from the slump, he says that a lot it can
be attributed to a natural recovery.
“As I said, in some point in 2012, we reach fair
value. Now the growth has come in because of the
general optimism in the UAE. The real economy,
the other sectors besides real estate, are seeing a
massive recovery across the board. That’s lead to
the recovery in the last one year,” he explains.
“(The Expo) is going to have an impact.
It’ll have a real impact on the economy. On a
conservative estimate it will create 250,000 fresh
jobs. People are optimistically talking about even
a half a million jobs or 750,000 jobs.
“Those jobs will lead to demand for residential
units, office space, all of that will come in. So
there will be a real benefit. I think of course that
this will lead to some speculation as the market
will have a bump, just on the announcement of
the Expo itself.”
This concern over speculation is a common
worry amongst real estate experts. However,
Yousuf Kazim, the general manager of
Jumeirah Golf Estates, another master planned
development in Dubai, says that he’s seen a shift
ESTATE LIVINGYousuf Kazim says there are changes to the way developers approach projects.
MASTER DEVELOPERS
in the way investors and the government are
approaching projects, which will alter the way
developers will be doing business.
“I looked into this market a long time and
I’ve seen all the cycles. I believe that with RERA
and the regulations that have been put in by the
Land Department, it’s now really well regulated.
The market is now more mature, the customers
are more mature, the developers and the sub-
developers, they’re all more mature.”
“Look at this market when it was premature,
you had a lot of speculators, a lot of risk elements.
Today, the whole situation is different. There’s
more reality, more realisation of the project. It’s
definitely a win-win for the developer, it’s a win
for the customer. It’s even a win for the master
developer,” he asserts.
“I believe that RERA is doing a great job, and
by having a regulated real estate market in Dubai,
that will put us in a very good position, and I
believe that this is a very important and crucial
element in Dubai’s success.” n
INVESTOR INTERESTAccording to Cluttons, the Expo will encourage inward investment.
‘Like’ us on
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With construction activity prepared to witness an all-time high in the Middle East, Big Project ME looks at
the oft-overlooked construction technique that proponents feel will go a long way in preparing the
region for the mega-events of 2020 and 2022
PREFABRICATING THE FUTURE
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SPEEDY BUILDThe 30-storey Broad Sustainable Building in China was built in a mind-twisting 360 hours.A
recent study by EC Harris, titled ‘Middle
East Major Construction Programmes:
Mitigating the Delivery Risk’ has identified
more than 117 projects, worth over $1
trillion, across the GCC region, planned for
completion by 2030.
These developments are primarily in the
retail, real-estate, leisure, health and education
sectors, and will it require 1.2 million additional
labourers to deliver these projects between 2014
and 2019.
Some of the noteworthy mega-projects to fall
under this bracket include the unified GCC rail
network and the infrastructure required by Qatar
to host the FIFA World Cup 2022 (and we can now
add the Expo 2020 to the list).
Dubai’s need for infrastructure is massive.
Sheikh Ahmed bin Saeed Al Maktoum, head of
Dubai’s Supreme Fiscal Committee had, at the
Dubai Airshow last month, revealed the emirate
would require an investment of $8.1 billion if the
city won the bid to host the Expo 2020.
With less than a decade left for Qatar and UAE
to host the respective world events that will shape
and define their global positions in the future,
there is a rising demand for speedy, good-quality
infrastructural development in both countries.
This could, potentially, exert pressure on
the region’s construction sector, and it becomes
essential that traditional construction practices
work in conjunction with modern, evolving
techniques to fulfil the demand placed on the
industry.
Prefabricated construction could fill that
gap. Used extensively around the world for
decades now, off-site fabrication refers to, as
the name suggests, the manufacture of building
components at a place away from the actual site
of construction – usually, a factory that specialises
in the creation of modular systems.
Generally viewed as an effective cost-cutting
measure, prefab is now considered to be an
ideal option for the creation of units such as
bathrooms, hangars, factories, sheds and even
fully-furnished buildings.
“I truly believe there will be a time when
construction for Expo 2020 and the FIFA
World Cup 2022 will have to be sped up,” says
Sadig Abuagla of Unipods LLC, a company
that specialises in offsite turn-key solutions
for bathrooms and kitchens in residential and
commercial developments.
“To meet the construction demands as soon
as possible, prefab structures will be the preferred
choice to ensure quality construction is provided
in the given, limited period. To maintain product
standards and deliver within the deadline – this
can’t be done traditionally,” Abuagla continues.
Speed, it would seem, is the driving factor
behind shifting to pre-engineered products.
“Pre-engineered products are much faster to
complete,” says Amr Shahbour, district manager
for Dubai and Northern Emirates at Zamil Steel.
“Even a large project (in terms of size) can be
completed within a span of four to five months.”
Wastage, Abuagla claims, can be massively
reduced through the use of prefab.
“We can install up to 20 pods – this goes a long
way in saving the time taken up by construction,”
he says. “The supply chain is drastically
shortened too, since all products are available
with a single manufacturer who will install
them for you, as against the need to reach out to
multiple suppliers.
“Moreover, since all units are produced in the
factory and made to exact specifications, material
wastage is significantly reduced.”
Quality remains the deciding factor in the
implementation of prefab construction, with the
market consensus often leaning towards general
disapproval for the method, which is believed
to result in low-quality modules due to faster-
than-traditional delivery time periods. Abuagla,
however, feels it is to the contrary.
“You cannot compare product quality with
time parameters. With Unipods bathrooms,
for example, the final output will not compare
with traditionally built ones, simply because the
processes are so varied.
“We don’t always have the opportunity to
check factors, such as waterproofing, on site.
But because all the installed units are factory-
produced, there is the confirmation that each
of them is consistent and adheres to client
specifications.”
Another derived advantage of the method is
the convenience of adjustment. “Maintenance
is very easy with pre-engineered structures;
say, for instance, steel members in a building,”
says Shahbour. “Relocation, extensions, upkeep
are all simplified processes when it concerns
prefabricated pieces.”
The aim at Shabour’s company is the
complete elimination of concrete slabs, which
are replaced by steel members to allow for easy
modifications.
Abuagla believes the market is gradually
opening up to prefab alternatives.
“If I have a client using my product once,
chances are good they will return – and they do
often. It is undoubtedly difficult to convince and
convert those contractors in the region who have
Chinese construction company Broad Sustainable Building (BSB) was globally acknowledged in January 2012 for its construction of a 30-storey hotel in 360 hours in the country’s Hunan Province.
The 17,000sqm hotel, teports claimed, withstood earthquake resistance tests from magnitudes of 7.0-9.0 on the Richter Scale, and works based on the principles of energy conservation to complete air filtration.
T30
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been using traditional construction methods for,
say, 20 years. We are often asked if this method
will help in cost-reduction.
“The onus is on us to educate them about
quality, value for money and so on. There are
various intangibles involved in the use of prefab –
it is hard to put a price on supervision, reduction
of wastage and other such factors.
“That is the reason we have so many returning
customers. It is a big weight off their shoulders,
to have the option of prefabricated products at
their disposal, without too many concerns about
quality,” Abuagla adds.
Prefabrication is not a recent phenomenon;
reports have suggested it was the preferred
method of housing during the World War II, and
many European countries and the USA have in
the past used prefabricated modules for housing
and small commercial purposes as well.
Today, prefabricated units are vastly popular
across the globe. More than ten residential units
were built between 1994 and 2004 in Hong Kong
city, for instance.
In 2001, global fast-food joint McDonalds
gained attention for the use of prefab technology
to build their new outlets, setting a record for an
outlet that was built and open for business within
13 hours of starting construction on prepared
ground-works.
Prefab structures are also viewed as solid
temporary housing solutions for unforeseen
situations, proven by their extensive use in the
aftermath of Hurricane Katrina in USA, 2005.
“The use of prefabricated and pre-engineered
products is not restricted just to commercial units
like factories, sheds, hangars and so on,” explains
Shahbour.
“We have, in the past, provided pre-
engineering solutions for residential complexes
and parking lots in Bangladesh. There is surely
ample residential scope with prefabricated
construction.”
As the UAE moves towards sustainable
business practices, prefabricated construction
has the chance to claim stakes in what could
revolutionise ‘green buildings’ across the region.
Prefab construction centres around the
concept of off-site production, which means
most units are brought in from factories and only
assembled on-site, thus reducing the wastage
and energy consumption that is a notable facet of
traditional construction.
As Abuagla concludes, “most prefab structures,
such as pods, are built from scratch and to exactly
given standards. In a way, prefab construction is
already an eco-friendly method.” n
When Hurricane Katrina hit America in August 2005, the state of Louisiana heavily suffered a loss of housing in its famed city, New Orleans.
Over the next couple of weeks and months, prefab housing units were set up for those displaced by the mishap, with government support extending to almost $900mn to set up close to 25,000 mobile and modular homes for the residents. Such was the demand for prefab housing, that, nearly a year later, reports pertaining to the traditional housing market’s decreasing preferability began to emerge.
HURRICANE KATRINA
OPPORTUNITIESPre-fabrication building has the chance to establish itself as a “green” alternative.
“THERE WILL BE A TIME WHEN CONSTRUCTION FOR EXPO 2020 AND THE FIFA WORLD CUP 2022 WILL HAVE TO BE SPED UP. TO MEET THE CONSTRUCTION DEMANDS AS SOON AS POSSIBLE, PREFAB STRUCTURES WILL BE THE PREFERRED CHOICE”
36 - 41 Proj Management.indd 36 10/2/13 9:56 AM
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Harwal Group is a holding company
for a diverse group of manufacturing
companies spread across the United
States, the Middle East and Europe. The
group provides high quality products across a
range of sectors.
Headquartered in the UAE, the group has
an annual conversion capacity of 200,000mt of
plastic and 20,000t of aluminium.
Although the Group’s primary business is
based on plastic, metal and wood conversion
in the building materials industry, it also has a
wide range of finished products for some very
diverse sectors. One recently launched product
Helping you makethe smartest decisions
Big Project ME speaks to Nazar Shahinian, VP of Business Development at TSSC, about the new EasyPanel wall system
EASYDOES IT
DECEMBER 2013
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that draws special attention is the ‘EasyPanel’
range of cement walls developed by TSSC, a
group company.
Big Project ME spoke to Nazar Shahinian, VP
of Business Development at TSSC, to find out just
why these panels are so special and how they can
assist contractors and developers when it comes
to building large scale residential projects.
HOW ARE THESE UNITS BENEFICIAL TO CONTRACTORS OR DEVELOPERS?With high demand for housing in the region,
contractors and developers are looking for ways
to build a large number of houses rapidly. Using
the conventional block and cement approach to
building takes too much time and has proved to
be too costly.
As we see it, developers cannot meet the
huge market demand for housing using these
traditional block walls.
On the other hand, contractors are looking
for materials that look, feel and work like
traditional block wall. This is where the
EasyPanel comes in, as it does it all.
IN TERMS OF PERFORMANCE AND DURABILITY, HOW DO THEY COMPARE TO TRADITIONAL BLOCK WALLS?Traditional walls are made from blocks that are
cemented onto each other and then plastered
before finishing. This is a slow, inefficient and
labour intensive way of building homes. The
EasyPanel was designed to overcome all this.
EasyPanel is a solid cement wall panel made
of cement board and filled with cement foam
making it light enough to be easily carried and
installed. It installs faster than traditional block
wall, is easy to cut and fabricate, is prefinished
and costs less than a traditional block wall.
The EasyPanel wall system was designed to
be a new age cement wall to replace the blocks
being used throughout the region. It’s just like a
traditional block wall but much better.
SO WHAT ARE THE OTHER BENEFITS OF THESE PANELS?Other than the fact that EasyPanel feels like and
does pretty much everything a block wall does,
perhaps the next most significant performance
advantage of the EasyPanel is the insulation
“EASYPANEL IS LIKE A TRADITIONAL BLOCK WALL, BUT MUCH BETTER”
factor which is vastly superior to block wall.
The impact of this is substantial when it comes
to the cost of cooling homes and the cost of the
cooling infrastructure to support each home.
HOW MUCH DO THEY COST COMPARED TO TRADITIONALLY CONSTRUCTED UNITS?When comparing the cost of building a wall
using the EasyPanel versus a traditional wall
with blocks and cement, the EasyPanel offers a
20-25% savings in building a house.
Furthermore, the savings increase once
you factor in the additional cost of plastering
both sides of the block wall to make it ready for
painting.
But perhaps the greatest savings is in the
reduction in time needed to build a finished
home. The savings in energy costs attributed to
the insulation the EasyPanel offers adds to the
cost saving.
HOW CAN THEY BE ADAPTED AND CUSTOMISED TO INDIVIDUAL CONTRACTOR/DEVELOPER NEEDS?EasyPanel is a conventional material that can
be customised, designed, cut and fabricated by
contractors on the job site similar to block walls.
So there isn’t a huge learning curve or hurdle
to overcome. EasyPanel makes the building
process fast and easy. n
DECEMBER 2013
CUSTOMISATION EasyPanel is a conventional material without a huge learning curve, making building fast and easy.
EASY DOES ITEasyPanel installs much faster and is more cost-effective than traditional block wall.
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TENDERS BIGPROJECTME.COM
in planning stage. The Airport City will include a new trade free zone, cargo village, factories belonging to the civil aviation for packaging and food terminals
STATUS New Tender
www.ccsgulf.com | Tel: +971 4 346 6456 | [email protected]
INTEGRATED ESTIMATING, PROJECT CONTROL
AND ERP SOLUTION FOR CONTRACTORS
TOP TENDERS
BUDGET $3,000,000,000
CLIENT Al Habtoor Group LLC (Dubai)
REGION Dubai
BUDGET $14,000,000,000
CLIENT Egyptian Holding Company for Airports & Air Navigation - EHCAAN (Egypt)
REGION Egypt
DESCRIPTION This project will be developed next to Cairo International Airport in Egypt and cover an area of up to 10 million sqm. It is understood that the project is currently
PROJECT NAME: AL HABTOOR CITY PROJECT
BUDGET $9,300,000,000
CLIENT Jeddah Municipality (Saudi Arabia)
REGION Saudi Arabia
DESCRIPTION Construction of Jeddah Metro light rail transit system spanning 108 kilometres comprising three major lines
STATUS New Tender
PROJECT NAME: KIRKUK - HADITHA CRUDE OIL PIPELINE PROJECT
BUDGET $500,000,000
CLIENT North Oil Company (Iraq)
REGION Iraq
DESCRIPTION Construction of a 180-kilometre-long, 40in crude oil pipeline for connecting an oil field to distribution and storage facilities
STATUS New Tender
PROJECT NAME: JEDDAH METRO PROJECT
BUDGET $5,000,000,000
CLIENT Bahrain Government
REGION Bahrain
DESCRIPTION Construction of a 90-kilometre-long railway line linking Bahrain and Saudi Arabia. This new railway line will form part of the $15.5 billion GCC-wide railway network and help alleviate increasing congestion on the existing King Fahd Causeway linking the two countries
STATUS New Tender
DESCRIPTION Construction of Al Habtoor City comprising three luxury residential towers, including multi-level penthouses, in addition to three hotels, a 1,400-seat Las Vegas-style aqua theatre, three large basement levels, ground and mezzanine levels and a large car park
STATUS Current Project
PROJECT NAME: CAIRO AIRPORT CITY DEVELOPMENT
PROJECT NAME: BAHRAIN - SAUDI ARABIA RAILWAY LINE PROJECT
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www.ccsgulf.com | Tel: +971 4 346 6456 | [email protected]
INTEGRATED ESTIMATING, PROJECT CONTROL
AND ERP SOLUTION FOR CONTRACTORS
UAEPETROCHEMICALS STORAGE TANK TERMINAL PROJECT
PROJECT NUMBER MPP2843-UTERRITORY Northern EmiratesCLIENT NAME Middle East Tanking Solutions FZC (Fujairah)CITY Fujairah COUNTRY UAEPHONE (+971-9) 223 5264FAX (+971-9) 223 5265EMAIL [email protected] www.middleastanks.comDESCRIPTION Engineering, Procurement and Construction (EPC) contract to build a new petrochemicals storage tank terminal.STATUS New TenderFEED CONSULTANT MUC Oil & Gas Engineering Consultancy (Fujairah) TENDER CATEGORIES Industrial & Special ProjectsTENDER PRODUCTS Storage
RUWAIS SURGE DRUM PROTECTION & BATTERY LIMIT ESD VALVES PROJECT
PROJECT NUMBER WPR051-UTERRITORY Abu DhabiCLIENT NAME Abu Dhabi Gas
Industries Limited (GASCO)ADDRESS Tower H, Corniche, Near Al Ain Palace HotelCITY Abu Dhabi POSTAL/ZIP CODE 665COUNTRY UAEPHONE (+971-2) 603 0000FAX (+971-2) 603 7414EMAIL [email protected] www.gasco.aeDESCRIPTION Engineering, Procurement and Construction (EPC) contract for surge drum protection and battery limit ESD valves at a refineryBUDGET $7,000,000PERIOD 15/05/2015 STATUS Current Project
TENDER CATEGORIES Gas Processing & Distribution, Oilfields & RefineriesTENDER PRODUCTS Modification, Repair & Refurbishing Services, Oilfield Supplies & Services, Oilfields Exploration & Development, Valves & Fittings (All Types)
OMAN
STEEL PRODUCTION PLANT PROJECT - SOHAR INDUSTRIAL ESTATE
PROJECT NUMBER WPR067-O
TERRITORY OmanCLIENT NAME Moon Iron & Steel Company (MISCO) - OmanCITY Bahla 612 POSTAL/ZIP CODE 307COUNTRY OmanPHONE (+968) 2541 9595EMAIL [email protected] www.mesteel.comDESCRIPTION Engineering, Procurement and Construction (EPC) contract to build a steel production plant with capacity to manufacture 1.2 million tonnes per annum of steel billetsPERIOD 2015 STATUS Current ProjectMAIN CONTRACTOR SMS Meer
MIDDLE EAST TENDERS PROVIDED BY Tel +9712-6348495Web www.MiddleEastTenders.comEmail [email protected]
SPONSORED BY Tel +9714 346 6456 Web www.ccsgulf.comEmail [email protected]
60 DECEMBER 2013MID
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GmbH (Germany)MAIN CONTRACTOR(2) SMS Concast Italia SpA (Italy)MAIN CONTRACTOR(3) Essar Projects Ltd. (Oman)TENDER CATEGORIES Industrial & Special ProjectsTENDER PRODUCTS Steel Mills
QATAR KATARA TOWERS PROJECT - LUSAIL MARINA DISTRICT
PROJECT NUMBER WPR059-QTERRITORY QatarCLIENT NAME Katara Hospitality (Qatar)ADDRESS Formerly Qatar National Hotels Company, Katara Hospitality Bldg., C Ring RoadCITY Doha POSTAL/ZIP CODE 2977COUNTRY QatarPHONE (+974) 4423 7777FAX (+974) 4427 0707EMAIL [email protected] www.katarahospitality.comDESCRIPTION Construction of Katara Towers comprising a luxurious five-star hotel and a luxury hotel, including branded apartments, consisting a total of (614) roomsPERIOD 2017 STATUS New Tender DESIGN Consultant Kling Consult (Dubai)FOUNDATIONS, ENABLING & PILING CONTRACTOR Al Habtoor Leighton Group W.L.L (Qatar) TENDER CATEGORIES Prestige Buildings, Hotels, Leisure &
EntertainmentTENDER PRODUCTS High-rise Tower, Hotel Construction
INDEPENDENT WATER & POWER PROJECT-4
PROJECT NUMBER MPP2844-QTERRITORY QatarCLIENT NAME Qatar General Electricity & Water Corporation (Kahramaa)ADDRESS Corniche Street, Number 61, Sheraton Roundabout, Dafna AreaCITY Doha POSTAL/ZIP CODE 41COUNTRY QatarPHONE (+974) 4484 5484/ 4484 5555
FAX (+974) 4484 5496EMAIL [email protected] www.km.com.qaDESCRIPTION Engineering, Procurement and Construction (EPC) contract to build an Independent Water & Power Project (IWPP) with power generation capacity of 2,400 megawatts (MW) and 30 million gallons a dayCLOSING DATE February 6, 2014 PERIOD 2016 STATUS New TenderTENDER CATEGORIES Power & Alternative Energy, Water WorksTENDER PRODUCTS Independent Water & Power Plants (IWPP)
INDEPENDENT WATER PROJECT - RAS LAFFAN INDUSTRIAL CITY
PROJECT NUMBER MPP1487-QTERRITORY QatarCLIENT NAME Qatar General Electricity & Water Corporation (Kahramaa)ADDRESS Corniche Street, Number 61, Sheraton Roundabout, Dafna AreaCITY Doha POSTAL/ZIP CODE 41COUNTRY QatarPHONE (+974) 4484 5484/ 4484 5555FAX (+974) 4484 5496EMAIL [email protected] www.km.com.qaDESCRIPTION Construction of
www.ccsgulf.com | Tel: +971 4 346 6456 | [email protected]
INTEGRATED ESTIMATING, PROJECT CONTROL
AND ERP SOLUTION FOR CONTRACTORS
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an Independent Water Project (IWP) using reverse osmosis (RO) technology, with capacity of 45 million gallons a day (g/d)STATUS New Tender TENDER CATEGORIES Water WorksTENDER PRODUCTS Independent Water Plants (IWP)
SAUDI ARABIAHOSPITAL CONSTRUCTION PROJECT - AL KHOUD
PROJECT NUMBER WPR066-OTERRITORY Saudi ArabiaCLIENT NAME Shifa Al Jazeera Medical Group (Saudi Arabia)ADDRESS BathaCITY Riyadh COUNTRY Saudi ArabiaPHONE (+966-1) 412 4900 / 412 2455FAX (+966-1) 409 2028EMAIL [email protected] www.shifaaljazeera.com.saDESCRIPTION Construction of a super-specialty hospital comprising (100) bedsPERIOD 2015 STATUS New Tender TENDER CATEGORIES Construction & Contracting, Medical & HealthcareTENDER PRODUCTS Hospital Construction
IRAQDUHOK INTERNATIONAL AIRPORT PROJECT - PHASE 1
PROJECT NUMBER ZPR360-IQTERRITORY IraqCLIENT NAME Civil Aviation Authority (Iraq)ADDRESS Baghdad International Airport, Babylon Terminal, 2nd FloorCITY Baghdad COUNTRY IraqPHONE (+964-1) 813 2467 / (+964-790) 531 9779 FAX (+964-1) 543 0689EMAIL [email protected] www.iraqcaa.comDESCRIPTION Construction of an international airport in Duhok with annual capacity of 328,000 passengers - Phase 1PERIOD 2015 STATUS Current Project DESIGN CONSULTANT Dar Al
Handasah (Shair & Partners) – IraqDESIGN CONSULTANT 2 Aeroports de Paris - AdP (France)MAIN CONTRACTOR Makyol Construction Industry Tourism & Trading Company (Turkey)MAIN CONTRACTOR 2 Cengiz Holding (Turkey)TENDER CATEGORIES Airport, Construction & Contracting, Roads, Bridges & InfrastructureTENDER PRODUCTS Airports Development & Management
BAGHDAD MONORAIL PROJECT
PROJECT NUMBER MPP2381-IQ
TERRITORY IraqCLIENT NAME Baghdad Governorate (Iraq)ADDRESS Near Al Khalani AreaCITY Baghdad COUNTRY IraqPHONE (+964-5) 377 676 / (+964-7) 4002 2618EMAIL [email protected] www.baghdad.gov.iqDESCRIPTION Development of 25-kilometre-long monorail on a viaduct comprising (14) stations in BaghdadBUDGET $1,500,000,000 PERIOD 2018 STATUS Current Project
www.ccsgulf.com | Tel: +971 4 346 6456 | [email protected]
INTEGRATED ESTIMATING, PROJECT CONTROL
AND ERP SOLUTION FOR CONTRACTORS
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SHOW REPORT THE BIG-5 2013 BIGPROJECTME.COM
Big Project ME was on the ground at the 2013 edition of The Big-5 to find out the prevailing market sentiment ahead of what looks to be a stellar year for the GCC construction industry
BIGGER ANDBETTER
Following its inauguration by HH Sheikh
Hamdan bin Rashid Al Maktoum, Deputy
Ruler of Dubai, on 25 November, 2013,
The Big-5 show in Dubai kicked off with a
bang that saw record crowds flock to the region’s
largest construction show.
With a history of more than 33 years in the
region, this year’s event has grown by 10%
compared to the 2012 edition, with more than
2,500 exhibitors coming together from 65
countries. Organisers estimated that more than
60,000 construction industry professionals were
onsite over the course of the four days of the
event.
Also opening alongside the event was
Middle East Concrete – the largest event for
the concrete industry, showcasing concrete
products, technical seminars and live product
demonstrations – and PMV Live, an interactive
event for the plant, machinery and vehicle
industry that highlighted the latest in heavy
vehicles and related equipment.
“The event continues to grow with each
edition and is still considered the region’s most
important event for the building and construction
industry. This year, The Big-5 once again gave
architects, interior designers, contractors,
developers and all other construction
professionals, access to the full spectrum of
products. Our education programme also
expanded this year, giving our visitors access
to hundreds of free seminars, workshops and
BIG 5 NUMBERS:n 2,500 – estimated
exhibitors this year
n 60,000 – expected visitors
n 65 – countries represented
n 10% – growth in floor space at this year’s event
BEST IN YEARSUncomfirmed visitor numbers suggest that more people went on the first day than the whole of 2012.
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regulatory updates,” said Andy White, group
event director for the show.
One such regulatory update was the
presentation by Dubai Municipality about the
new Building Code Guidelines. Kamal Azayem,
mechanical engineering expert at Dubai
Municipality, told seminar goers that there were
currently 40 buildings in Dubai that were in line
with the new Green Building codes, with two
already complete and certified.
Contractors present at the seminar were taken
through what they could expect from the codes
and given examples of how these were already
being put into practice.
The new guidelines will enforce a number of
construction and operational specifications that
are meant to make buildings more sustainable
and efficient, Azayem added.
However, what had everyone talking was the
announcement of the Expo 2020, which was
awarded to Dubai on the 27 November, on the
penultimate day of the show. Quite obviously,
exhibitors were optimistic about its impact on
the local construction industry and what it would
mean for them.
Stefano Iannocone, the managing director of
Mapei, said that he expects there to be a positive
impact in the wake of the announcement: “The
Big-5 is an excellent opportunity for the industry
to unite on the eve of the Expo 2020 result
announcement. A lot of deals have been signed
and the Expo announcement will only further
this activity.”
Andy White agreed, adding that this could be
seen throughout the exhibition.
“We congratulate Dubai and the UAE on their
successful bid. The optimism in the industry
has certainly been seen on the show floor. This
year has surpassed attendance expectations,”
he commented. “Winning the Expo bid was a
fantastic way to round off this year’s show.”
Other exhibitors were equally impressed
with the turnout at this year’s The Big-5, with
Jeff Orme of Thrislington Cubicles, remarked to
Big Project ME that his stall had seen a surge in
interest as compared to previous years.
“We came here two years ago and we were
a bit disappointed with the show. But we don’t
come to shows to sell jobs, but for branding and
presence, and this year we’ve found that it’s been
much busier. People are showing a lot of interest
and we think that the market is going in such a
way that we’ll benefit very strongly in 2014 and
into 2015,” he pointed out.
“THIS YEAR, THE BIG-5 ONCE AGAIN GAVE ARCHITECTS, INTERIOR DESIGNERS, CONTRACTORS, DEVELOPERS AND ALL OTHER CONSTRUCTION PROFESSIONALS, ACCESS TO THE FULL SPECTRUM OF PRODUCTS”
“We’re already seeing it in other Gulf countries
such as Qatar and Saudi Arabia. At the moment
we’re doing the King Abdullah Sports City and the
Doha Convention Centre, we’re involved in the
Heart of Doha, the World Trade Centre in Doha,
so we’re building a nice portfolio of projects.”
“We haven’t had that much work in Dubai
and Abu Dhabi recently, we did years ago, but
we’ve not had as much work recently, but we’re
hoping on the back of this show, that over the
course of the next 12 months, we see the fruits of
that,” Orme added.
CK Raju, research and development manager
at Rubber World Industries, was also very
enthusiastic about the resurgence of the show,
following what many deemed to be a lacklustre
2012 edition.
“It’s been a huge success. You see the number
of stalls. People are here from all over the world.
So not only places like China, which is what
we’ve seen previously, but also from Turkey,” he
asserted. “Last year when I came, I only saw a
few, but this time, I’ve seen dozens. That’s a new
development. Even from Saudi Arabia, India,
Brazil, there are so many stalls that I’ve seen from
all over the world. There’s a lot of optimism in
the market.” n
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GAVIN DAVIDS
LATE LAST MONTH, as part of my
responsibilities at The Big 5, I attended a panel
discussion hosted by Big Project ME’s very own
group editor, Stephen White. While the panel
discussion centred on the issues of working
safely at heights and the training of workers
on construction equipment, there were a few
topics of discussion that really stood out for me.
We had the director of Occupational
Health and Safety at the Ministry of Labour,
Dr Ali Salem as part of our panel and he said
something very fascinating about how he
expects his department to conduct its affairs
and duties.
Dr Salem pointed out that he views it as a
matter of necessity that his team of inspectors
are up to date with all the kit and equipment
that are being used on construction sites across
the UAE. To this end, he insists that they go on
mandatory training courses set up by IPAF, so
that they learn – not only what the equipment
is used for – but also how it’s erected and
disassembled.
Not only does he ensure that his teams do
this, but he himself also goes along to these
training sessions to make sure that he’s just as
up to date as his inspectors.
It’s quite refreshing to see a senior
government official take such a proactive
role and it’s an example that I think more
government ministries around the GCC should
follow. While I’m sure they’re very good at
their jobs, it’s always useful to have first-hand
knowledge of the equipment and conditions
that workers on the ground are facing.
With Dubai now confirmed as the host of
the Expo 2020, the pace of construction is only
set to grow and with this comes the number
of construction workers on the ground. It’s
estimated that the Expo will create something
like 277,000 new jobs. I’d imagine that a large
section of those jobs would be new labourers
brought in to work on the projects that will be
announced.
Given the scale of the task that the
Ministry of Labour will be facing, I think it’s
quite perceptive of Dr Salem to push for his
inspection teams to have a greater awareness
of the hazards and challenges that workers
will face.
Hopefully, with these pre-emptive measures
in place, we could see the number of fatal
onsite accidents kept to a minimum. Of course
there are things we can’t account for, but with
proper planning and training, we’ll be able to
prevent incidents such as the recent fire on a
construction site on Al Khail road, which saw
panicked workers climbing down scaffolding
and ropes, while unfortunately one died after he
jumped from the third floor.
Traditionally, as we enter a new year, it’s
a time for reflections and resolutions, so let’s
hope that the Ministry keeps to this one, and
that we as an industry do our utmost to help
them achieve it.
On that note, I’d like to wish all our readers
a Happy New Year and a very prosperous 2014!
It’s been a tremendous year for Big Project ME
and personally, I’ve learnt so much from all of
you. I hope we’ve repaid that and I look forward
to continuing our association in the New Year. n
Gavin Davids is optimistic that Dr Ali Salem’s drive to educate his health and safety inspection teams could set the standard for the rest of the GCC
Pre-Emptive Measures
“WITH DUBAI NOW CONFIRMED AS THE HOST OF THE EXPO 2020, THE PACE OF CONSTRUCTION IS ONLY SET TO GROW AND WITH THIS COMES THE NUMBER OF CONSTRUCTION WORKERS ON THE GROUND.”