MENA Infrastructure 6

As Iraq swaps combat for construction, what challenges does the country face in its rebuilding process?

A FAREWELL TO ARMS

PUSHING THE BOUNDARIESAl Habtoor Leighton CEO Laurie Voyer

on expanding beyond the UAE

BAY OF PLENTYInside Bahrain Bay with Chief

Executive Bob Vincent

www.menainfra.com Q3 2010

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unwilling to invest in their own stock markets and property sectors. According to Abdul-Zahra Al Hindawi, spokesman for the Ministry of Planning and Development the agency in charge of supervising the implementation of the plan about US$100 billion of the proposed project costs will be fi nanced by the state budget while the remainder will be funded through local and foreign investments.

Th is suggests that despite its problems, Iraq may just be the place to invest in right now. Its certainly on the radar for the big fi rms: Laurie Voyer, CEO of major UAE contractor Al Habtoor Leighton Group, tells us in an exclusive interview that the country will play an important role in its contin-ued expansion across the region; meanwhile, regional real estate players such as Al Maabar, Bloom, National Holdings, Bonyan and Al Hanthal are all in advanced talks with the Iraqi National Investment Commission on starting projects in Iraq.

As ever with these types of developments, cooperation and collaboration will be key to their success. Th e experience and technology knowhow of the international companies, plus the contacts and cultural knowledge of local partners, will provide a great formula for success, says Namir El Akabi, CEO of domestic construction fi rm Almco, in our cover story. If the Iraqi people and international fi rms can embrace this new spirit of partnership and work together, then the rewards could be rich indeed.

Iraq is increasingly waking up to new sounds in the morning: amid the continuing crackle of gunfi re and exploding IEDs, the nations long-suff ering inhabit-ants are now just as likely to be woken by the drone of jackhammers and earthmoving equipment as the countrys rebuilding process begins in earnest following the with-drawal of US combat troops at the end of August. Across the country, scaff olding is springing up over the bullet-marked walls and workers are swarming over construction sites as Iraq embarks on its return to some semblance of normality. And as the massive recovery eff ort picks up momentum, for-eign fi rms stand ready to take up the challenge.

Oil money from rising production is powering growth, and now that the government has awarded oil-fi eld contracts worth billions of dollars to BP, ExxonMobil, China National Petroleum and others, foreign clients are looking for help in fi nancing everything from pipelines to power grids to work-ers camps. And in addition, pent-up demand for housing and better infrastructure is also proving a big draw for interna-tional fi rms. Indeed, for all its security issues and political infi ghting, Iraq remains an economic powerhouse waiting to be tapped and the governments decision to kick-start a US$186 billion development plan, announced back in July, is welcome news for a region that is looking for new ways to massage an economy that has collectively struggled in the wake of the global fi nancial crisis.

Th e Iraqi governments aim from the plan is to achieve an average annual economic growth of 9.38 percent, develop its sagging infrastructure, reduce regional diff erences, provide 3.5 million jobs and diversify the economy away from a de-pendence on oil and gas. Everything from ports to bridges to roads to aff ordable housing solutions is set for an overhaul as the country looks to stimulate growth.

Its especially good news for regional construction and real estate companies who can bring in their much needed expertise to Iraq, and Gulf fi nanciers who are sitting on cash,

UNTAPPED POTENTIAL

As Iraq swaps Humvees for JCBs, can the coun-trys rebuilding process provide a much-needed boost to the regional construction industry?

5FROM THE EDITOR

Ben Th ompsonManaging Editor

US$100 billion of the proposed project costs will be fi nanced by the state budget while the remainder will be funded through local and foreign investments

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CONTENTS 7

42

54 Just like starting overWith Western troops beginning their exit of Iraq, Ben Thompson takes a look at what the future holds for this resource-rich but brutally war-torn nation

74Th e Gulfs budget boomLucy Douglas takes a look at the Middle Easts affordable housing sector and asks how this can help the recovering property industry

Bay of plentyBahrain Bay CEO Bob Vincent reveals how the mega project is set to boost the economy of the GCCs smallest nation, and how it rode out the crash of the property market

92

Qatar hero When Qatar discovered oil and gas back in the 1930s, its capital Doha rapidly morphed from a small settlement into a sprawling city. Dohaland CEO Issa Al Mohannadi believes that now is the time for the city to go back to its architectural roots

28 Building a powerful presenceMENA Infrastructure catches up with Al Habtoor Leighton Group CEO Laurie Voyer to discuss expansion, experience and the value of doing the basics well

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CONTENTS 9

9838 Lasting impressionsJohn Best looks at the value of reputation in the construction industry

62 Protect and serveDean McGrail discusses the latest trends and technologies in re protection and exactly why the MENA region needs to comply

80 MENAs deadliest threat?The construction boom of the GCC has attracted scores of people to the region for business. But this population growth has brought a potentially fatal danger into the picture

90 Simply safer sign posts Craig Pyser explains how specially engineered road signs can help save lives

98 Back on track?Why Doha is embracing the need for improvement to its mass transport network

118

Ask the Expert

36 Catherine Houska Nickel Institute 40 John McNamee Ischebeck Titan66 Barry Bell Wagner Fire Management Consultants72 Rob Schomaker Biddle84 Brian Fitzpatrick and Tim Risbridger EC Harris 116 Patrick Laemmle PANOLIN AG

68

Executive Interviews

52 Lars-Gran Andersson Volvo68 Mark Fenton Honeywell Life Safety88 Poul Svensgaard DELTA Light & Optics122 Filippo Fantechi Contax Partners


Details

106 Asset preservationWith corrosion prevention a major construction challenge, are we doing everything that is needed to ensure the viability of our critical infrastructure?

118 Building a greener futureWith Hlne Pelosse, Director General of the International Renewable Energy Agency

124 Taking health, safety and the environment seriouslyFloris Schulze outlines how to create a safer energy infrastructure

135 High and dryMENA Infrastructure takes a look at the challenges raised by water treatment and reuse technologies in the region

138 Sane in the membraneWith OrangeBoats Jantje Johnson

142 Designing sustainable sports fi eldsWith Humberto Urriola of Atlantis

144 Long lasting connections By Lenzen Hebe-Und Frdertechniks Armin Lehmann 62

Roundtables

100 Rail110 Paints and coatings132 Wastewater

147 In the rough?Can the UAEs golf industry stay on the fairway, post-recession? 152 King of the greenWith golfmarnochs Steve Marnoch 154 Harbouring ambitionsA look at the regions luxury marina developments156 Travel36 hours in Mumbai158 AgendaYour guide to the regions events in the coming quarter

CONTENTS10

Industry Insight

48 Alineza Biparva Kryton50 Chen Liang Gannet Flemming70 David Stevenson Belimo86 Sebastian Althen Siemens126 Richard Menezes Utico 140 Tony Wynes Aquarius

132


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Chairman/Publisher Spencer GreenWorldwide Sales Director Oliver SmartFinance Director Jamie Cantillon

Editor Ben ThompsonAssociate Editor Lucy DouglasContributors Ian Clover, Rebecca Goozee, Nicholas Pryke, Julian Rogers, Stacey Sheppard, Marie Shields, Huw Thomas

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UPFRONT14

There have been rumblings about the turn around of the UAEs construction industry for almost a year now; some reports rather optimistically suggesting that the sector was on track to enjoy a return to the lucrative state it was in pre-recession before the end of the year, others more reasonably predicting that wheels of change will not be set in motion until at least Q1 2011. However, the last quarter has thrown-up evidence to suggest that the eagerly awaited recovery of the countrys iconic development industry could be well and truly under way.

Slow but steady, the recovering real estate market is beginning to pick itself up, a fact evident in the steadily improving times taken to settle outstanding contracts and a general increase in consumer and investor con dence.

According to Shaikhani Contracting, a branch of international business conglomerate Shaikhani Group, the improving contractor-payment scenario is best re ected in Dubai, where several major developers have begun to repay costs that have been outstanding since the economic downturn brought the countrys construction boom to a halt two years ago.

With close to US$500 billion in projects shelved or cancelled as a result of the downturn, the UAE took the hardest hit in the region. However a recent report from the Dubai Chamber of Commerce and Industry indicated some US$714.8 billion worth of construction projects are now in the early stages of development in the UAE, either in design or already under construction. Recent market projections show that 26,650 apartments and villas will be handed over in Dubai alone this year as the region enters a recovery phase. In addition, the transport sector looks set to keep large-scale construction projects in the country ticking over, with the US$7 billion international airport and a new port facility at Khalifa Port underway in Abu Dhabi, as well as extensive plans for the Dubai Metro under development.

Indeed, Shaikhani Contracting has attributed the resurgence of the construction sector in the UAE to the ongoing support and investment from the government.

The report from Dubai Chamber of Commerce and Industry further revealed that over the course of 2010, a large amount of construction and infrastructure projects are due to be awarded. In addition, an analysis of the biggest projects in the region by value indicated that ve of the top 10 schemes are to be found in Abu

Interest returns to the UAE

Some US$714.8 billion worth of construction projects are now at in the early stages of development in the UAE

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UPFRONT 15

Dhabi. With the increasing attention of construction rms towards breaching new markets, focusing on the public instead of private sector, and forging new partnerships to increase competitiveness, the UAE is regaining its momentum as one of the worlds leading construction destinations.

This welcome development regarding the faster interval of payment for dues owed to contractors bodes well for our plans to grow our operations in the UAE, and we are very excited to witness the resumption of construction activities and become one of the most active contractors working on projects across the country, explains Rizwan Shaikhani, Managing Director at Shaikhani Contracting, highlighting the renewed con dence in the market and activity that is being generated as a result. Back in June the rm had announced aims to secure AED60 million worth of domestic contracts this year, including contracts for the construction of private villas in the Al Khawaneej area of Dubai.

Another company set to capitalise on the renewed con dence in the region is Danube Building Materials, who has announced plans to leverage nine retail facilities in the country. Our con dence in the UAE construction market has never wavered, as indicated by our continuous expansion activities across the country and our investments in growing the presence of Danube BUILDMART in major shopping malls, said Rizwan Sajan, Chairman of Danube Building Materials. We are pleased that our strong belief in the potential of the UAE market will be rewarded by the positive developments and increasing prospects in the construction industry.

Similarly, William Dewsnap, Head of Valuation for Abu Dhabi at Cluttons property consultancy rm, is positive that going in to Q3, post Ramadan, activity within the industry is going to ourish. I think the general sentiment in the market is that people are quite hopeful that things will pick up and the number of transactions will start to increase.

The July market update report from Cluttons reiterates the renewed interest that the UAE is beginning to draw. Large stocks of property in Dubai caused signi cant price reductions in 2009, which in turn are proving very attractive to buyers today. The Abu Dhabi update read, Despite risk of oversupply, sales from the majority of freehold developments within Abu Dhabi appear to have continued at a slow but steady rate throughout much of 2010.

I think theres still plenty of activity to be seen, says Dewsnap, particularly in the Abu Dhabi market as these new units are completed and as people start to see properties as a tangible asset that they can actually live in or rent out, rather than just being a pipedream. [Buyers] may have paid for it, or started to pay in phases, two or three years ago, but when the product is actually handed over and delivered, thats when peoples con dence then starts to increase.

News in pictures

US Secretary of State Hillary Clinton, President Mahmoud Abbas of the Palestinian Authority and Prime Minister Benjamin Netanyahu of Israel chat as they re-launch direct negotiations for peace between Israel and Palestine at the State Department in Washington, DC.

IKEA are among the group of internationally renowned European retailers, which also includes Marks and Spencer and Toys R Us, that will set up in a new US$1.6 billion multi-purpose complex in Doha, planned to be the largest in Qatar. Th e complex will contain a full retail centre, entertainment park and two hotels.

Dubai Metro celebrates its fi rst birthday. Coinciding with the event, Dubais Roads and Transport Authority announced that the service had carried 30 million passengers in its fi rst year. By August 2010, the number of people using the Metro had grown 183 percent since October 2009.


UPFRONT16

DEWA, one of the pre-eminent integrated utilities in the GCC region, has a long-standing history as a safe, reliable and cost-effective utility provider in Dubai. The IWPP programme is expected to enhance DEWA's ability to continue providing best-in-class services whilst meeting the growing demand from a large customer base in Dubai.

In the past, DEWA has built, owned and operated power and water projects itself. An IWPP will introduce the private sector into the provision of long-term essential public infrastructure, leveraging capital, technical solutions for the new plant, international operating experience and other industry best practices.

The IWPP partnership structure has been very successfully employed across the GCC, and represents a sound and timely solution to meet the growing demand for key infrastructure in Dubai, says Jonathan Robinson, Head of Project Finance for the MENA region at HSBC. HSBC has acted as nancial adviser to many of the GCC countries on similar projects with great success, and we look forward to working with DEWA on this and future projects.

Encouraging private participation in Dubais energy sector and adopting the best practices available internationally in the energy business are key principles in DEWAs remit, and the announcement represents a key step on the road to meeting these objectives.

Dubai-based Majid Al Futtaim Group (MAF) will invite bids for its US$772 million Mall of Egypt project, one of the biggest shopping centres in North Africa, in November, according to an MAF of cial.

The project is now in the detail design phase that will be completed in October before the contract for the main building goes to tender in November, according to Richard Reid, Development Director of Mall of Egypt and Senior Vice President of Development in MAF Properties.

The mall promises to be a major development project. An indoor skiing facility similar to the one in Mall of the Emirates is planned in the 160,000-square-metre mall in Cairo, and with 350 stores, a 17-screen cinema complex, a Magic Planet, and an outdoor plaza and dining facility, the mall will target tourists and customers in the residential areas of Cairo's growing suburbs.

Reid added that Cairo's large urban population of 20 million, the rising standard of living and disposable income, and the small number of malls attracted MAF to start another project in Egypt. He expects the construction to have a big multiplier effect for the Egyptian economy, with the project set to hire 7000 Egyptian labourers through a local contractor and the mall retailers to employ thousands of people.

Egypt has emerged as a booming retail destination, attracting millions of dollars in investment from GCC countries. UAE developers Emaar Properties, Al Futtaim Group and Damac Properties are also investing in major projects in North Africa's booming economy.

London-based design rm RTKL, the architects behind Bahrain's City Centre and Mirdif City Centre, has already been commissioned to design Mall of Egypt.

Cairo to get Dubai-style ski mall

In a further sign of the growing interest in independent water and power projects in the region, the Dubai Electricity and Water Authority (DEWA) recently announced its intention to build the rst IWPP in the emirate and awarded the consultancy contract to three international rms. A consortium of HSBC, as the nancial consultant, alongside Clifford Chance as legal consultant, and Mott MacDonald as technical consultant, will advise DEWA on the key aspects of implementing this debut IWPP with the private sector.

The project a 1500MW power and 120MIGD water plant to be located in Hassyan aims to meet the growing demand for power and water in Dubai and marks the rst time DEWA has considered employing an IWPP structure, where the plant will be built, owned and operated in partnership with the private sector. Future projects are expected to follow and will utilise the same structure.

Dubai debuts IWPP project

Th e IWPP partnership structure has been very successfully employed across the GCC, and represents a sound and timely solution to meet the growing demand for key infrastructure in Dubai"


UPFRONT 17

information about traf c conditions available to some motorists, according to analysis from US-based research group the Texas Transportation Institute. As the traf c jam grew, many continued to drive into it probably not knowing what they were in line for, because while traf c reports in Chinas major cities are thorough, they arent as good or as easy to get in outlying areas.

In recent years, China has embarked on a huge expansion of its national road system but traf c periodically overwhelms the grid. According to government data, Beijing is on track to have ve million cars on its roads by years end, with the four million mark passed last December. And the bad news for frazzled Chinese commuters is that the situation could get worse before it gets better: estimates suggest that with around 1900 vehicles added to Beijings street each day, it could take years to get traf c under control.

If theres no traf c jam in the city, that would be news, said Niu Fengrui, Director of the Institute for Urban and Environmental Studies at the Chinese Academy of Social Sciences, while the head of the Beijing Transportation Research Centre, Guo Jifu, warned that traf c in the capital could slow to under 15 kilometres an hour on average if further measures were not taken to limit the number of cars.

Private cars are currently kept off Beijing's roads for one day per week depending on licence plate numbers, but an alternative solution could be the launch of a so-called super bus aimed at improving public transport while minimising the impact on road traf c. Due to be tested in the coming months in the western part of Beijing, the bus will travel on rails and straddle two lanes of traf c, allowing cars to drive under its passenger compartment, which holds up to 1400 people. Were going to start laying down test tracks along a six-kilometre stretch towards the end of the year, Song Youzhou, Chief Executive of design rm Shenzhen Hashi Future Parking Equipment, told AFP in August.

"From the second half of 2011, we're planning to test the bus with passengers on board," he added, noting that after a full year of trial runs, authorities would make a decision on whether to use the bus on a wider scale. Authorities hope to install 180 kilometres of such bus lines eventually, including a route to the capital's international airport.

If successful, the scheme could provide a blueprint for traf c-easing solutions around the world, including the Middle East which, in common with China, has a relatively immature highway network. According to Shawn Turner, a senior researcher with the Texas Transportation Institute, while the major traf c arteries in fast-growing economies tend to be pretty well developed, the lack of well maintained smaller, alternative routes causes a problem when traf c congestion kicks in. Taking the back roads just isnt an option in many cases. There isnt the redundancy we take for granted here [in the US], he told the Wall Street Journal.

If you thought your daily drive to the of ce in Cairo, Dubai, Riyadh or any of the Gulfs other congestion hotspots was a chore, spare a thought for unlucky commuters in China, where some Beijing-bound travellers were held up in a traf c jam that lasted for over 10 days during August.

Thousands of motorists were caught up in a 60-mile tailback that took several weeks to clear. While many motorists took detours, some ended up trapped for up to ve days, sleeping in their cars and taking shifts behind the wheel.

The gridlock resulted from a combination of peak seasonal travel, increased freight traf c and road construction. But it was made worse by a lack of

Great crawl of ChinaBeijing is

projected to have

5 MILLIONcars on its roads

by the end of the year


UPFRONT18

Being described by experts as an untapped goldmine, Libya has the potential to be the new frontier for infrastructure developers in the region. Rich in fossil fuel wealth and largely un-hit by the global recession, though under developed in terms of its of ce, retail and tourism property infrastructure, Libya poses a prime opportunity for developers looking to tap North Africas markets. The International Monetary Fund predict an economic growth of up to 5.4 percent and the government recently outlined plans to invest US$100 billion into infrastructure and housing in the coming four years.

Operations in the Libya are not for the timid developer. The countrys unstable business climate has long prevented foreign investors from taking too much interest in the market, and today most European, American and Middle Eastern investors that are moving into Libya are doing so in partnership with local businesses. Still, the fossil fuel resources that Libya is sitting are proving too attractive for many to resist. The country possesses some 54.38 trillion cubic feet of natural gas, and holds an impressive 75 percent of the entire North Africa regions oil supplies with 43.7 billion barrels, encouraging interest from rms across the world.

The UAEs Tameer Holding recently announced plans for a US$20 billion project in Libya, representing the single largest investment into the North African region from a Gulf company. President of Tameer Holding Omar Ayesh said of the project that it would be representative of the booming property, tourism and trade sector in Libya.

MENA Infrastructure takes a look at some of the major projects currently underway.

Medina TowerProject: A mixed-use, 40-storey tower combining 242 apartments, 23,000 square metres of of ce space, 20,000 square metres of retail space, a conference and exhibition centre and four oors of underground parking for the centre of Tripoli. Planning for the project was given permission in May and construction is on track to commence soon, with completion aimed for four years time.Status: Construction to commence imminentlyCompletion: Expected 2014

Project focus: Libya

Palm CityProject: A luxury residential development, Palm City consists of some 413 upscale residential units and a commercial piazza, about 15 minutes from the capital of Tripoli. While construction was completed in November 2009, the last few months have been spent putting the nal details to the developments. Still, the site has proved popular, with more than 95 percent of the units projected to have been leased by the end of 2010.Cost: EU150millionStatus: Construction completed Q4 2009

High-speed railway Project: Russian State owned rm Russian Railways invested a sum of US$2.8 million into a high-speed rail line to run between Sirte in central Libya to Benghazi back in March 2008. The line will run along the Mediterranean coast with trains travelling at around 250 kilometres an hour, and is due for completion by Q4 2012. Status: Under constructionCompletion: Expected Q4 2012

Medina Tower


UPFRONT 19

Proper safety supplies can improve safety performance and help ensure that employees return home in an equal or better condition than when they started their workday. AMECO, a global leader in mobile equipment

and tool solutions for construction site services and eet services, has now expanded its offering to include authorised distribution of 3M brand health and safety supplies. AMECO worked closely with 3Ms Occupational Health and Environmental Safety Division (OHESD) for more than a year to de ne the relationship. AMECO will focus initially on 3Ms personal protection equipment (PPE), but will have access to all 3M safety products. AMECO can now better serve its clients and protect workers by utilising the expertise, training and distribution of 3M products.

Safety is a top priority at AMECO; we are always looking for ways to improve safety performance and continue our outstanding safety record, said Cyndi Johns, AMECOs Global Asset Management Director. Becoming a distributor of 3M safety products further exempli es our commitment to employee safety and well-being.

3M, headquartered in St Paul, Minnesota in the US, began transforming technology more than 100 years ago. The rm is fundamentally a science-based company, producing thousands of imaginative products from healthcare and highway safety to of ce products and abrasives and adhesives. 3M's industry leading PPE has long offered safety solutions designed to meet the highest standards of excellence.

For more information, please visit www.ameco.com

Supplying safety

Tripoli International Airport Terminal BuildingsProject: A joint venture between several European investors, this project consists of two terminal buildings of 175,000 square metres in area each, with 48 lifts, 26 elevators, 160 check-in counters, 12 baggage handling carrousels and 32 xed and 64 mobile passenger boarding bridges. These new twin terminals have been designed to accommodate 20 million passengers every year.Status: Under constructionCompletion: Expected Q1 2011

Tajura utilities systemsProject: Being sure to prop up the mammoth construction development with necessary utilities infrastructure to support it, Libya is developing comprehensive amenity systems. Austrian building rm Strabag recently received the contract for a US$557 million project to modernise the water and sewage systems and telephone and electricity lines in Tajura, near Tripoli.

Italian rm Impregilo has been contracted to carry out similar works in Tripoli and Misurata. Status: VariousCompletion: Various

Tripoli

A lost-time injury can cost a developer between

US$13,600-27,200 A fatality can cost up to

US$136,000


UPFRONT20

Why Bahrain is the place to set your sights in the Gulf todayBy Mr Kamal Ahmed, Chief Operating Offi cer of the Bahrain Economic Development Board.

The Bahrain Economic Development Board (EDB) is the natural rst point of contact for businesses considering investing in Bahrain, the gateway to the trillion dollar Gulf market and wider Middle East. It is an agent for change, which has the overall responsibility for formulating and overseeing the economic strategy of the Kingdom and for creating the right climate to attract direct investment into the Kingdom.

Bahrain has so far been less affected by the global economic downturn than some others in the region thanks to the prudent domestic measures taken to preserve and grow the prosperity that the Kingdom has been nurturing for many years. These include a prudent scal and monetary approach, long-term strategy of economic diversi cation and a tried and tested regulatory framework with a commitment to the highest international standards.

Bahrain is the ideal location to do business both in and from the Gulf. With a trading history dating back more than 4000 years, the Kingdom is a vibrant international business hub with a progressive regulatory environment. So as the gateway to the trillion dollar Gulf market, Bahrain offers senior executives and decision makers the ideal location from which to access the whole region. Those that do can bene t from the prudent steps we have taken to strengthen the long-term sustainability and prosperity of the Kingdom.

Our plan has always been about building sustainable growth through a sound and exible economic and scal policy, a highly skilled and educated local workforce, diversi ed economy, rule of law and well-run, transparent regulation which has been proven over time. In todays reset world, these same measures provide the optimum business environment for international companies. Our strong track record and long-term strategy of economic diversi cation is backed by the highest and most transparent regulatory and supervisory standards.

In Bahrain, we believe education is the single most important factor in helping to improve sustainability, productivity and prosperity in any society. Fairness and opportunity for all our people is our primary goal. Schooling is free and compulsory for all Bahrainis, irrespective of gender, faith or family income. The Kingdoms education policy has been developed with a clear sense of which sectors it wants to grow and what employment opportunities will be created. This is key to the ambitions of Bahrains Vision 2030 and National Economic Strategy, to raise national living standards by providing greater opportunities in rewarding careers in the private sector.


UPFRONT 21

The past year has seen a number of challenges in the Middle Easts construction market. To meet these challenges, companies in the region have had to re-think and re-organise their businesses to meet the changing needs of the market as a whole. Focus is shifting geographically as companies look beyond their traditional markets into other MENA regions that have weathered the economic downturn and are poised to become home to the next construction boom.

Aluma Systems Middle East, a supplier of concrete formwork and shoring solutions that have been a staple in the Dubai construction market, is an example of a company that has restructured to adapt and meet the new market dynamics. Since early this year, Aluma has made a string of announcements and changes to its operations, beginning with the appointment of Luis Alvarez as the new General Manager. Alvarez, the former General Manager of Aluma Systems South America, brings a wealth of experience directing sales efforts and operations across geographically large and culturally diverse markets.

In addition to the appointment of Alvarez, and as part of Aluma Systems geographic re-focusing, the company has formed a major partnership in the Kingdom of Saudi Arabia with Saudi-based Global OTAD to become the newest supplier of formwork and shoring solutions in the Saudi market. To oversee this partnership and sales effort in the Kingdom, Aluma has appointed Fred Sargon as Sales Manager, whose efforts will be focused on strengthening relationships and promoting Alumas unique line of formwork products in the Kingdom.

With these changes in management and focus, Aluma Systems Middle East is an example of what many companies in the region are doing and what many companies must do to adapt to the new dynamic of the Middle East construction market.

Big changes needed to face big challenges

With the Commonwealth Games looming, all eyes are on Indian capital Delhi to see if it can produce the mammoth infrastructure needed to accommodate a world class sporting event of this calibre. Reports from across have the world in recent months have claimed that, as the opening of the event on October gets closer, the host city look increasingly like it will not have its stadia ready in time.

Construction of the facilities have been shrouded in criticism already, as piles of rubble and building materials have been piled high on pavements, often invading the already tiny residences of some of the citys poorest residents. Then earlier this year investigations from Indias anti-corruption body, the Central Vigilance Commission, indicated some serious aws in the contract and tendering processes involved in the development, in addition to signs that the quality of the buildings that were nished

may not have been up to scratch. Just to make matters worse, this seasons

monsoons have brought with them a comfortable breeding ground for dengue-fever carrying mosquitoes, resulting in an outbreak of the illness in the city.

But amid all the speculation that Delhi will be incapable of showcasing the super-event promised, a number of experts are conceding that Delhi will not disappoint. I think the news is darker than the reality will be, Jacque Rogge, President of the International Olympic Committee, told Reuters. They are doing a

huge effort. I think the nishing touches in terms of greenery, wallpaper and mural paintings will not probably be as good as they wished themselves, but I think thats peripheral.

Similarly, Commonwealth Games Federation President, Mike Fennell said: There is still some work, outside appearance, landscaping and cleaning to be done with great urgency but this will be completed very shortly.

As well as building 17 venues for the Games themselves and 26 new training centres for the athletes, the city has also developed its transport systems, including a Metro system and renovation of the airport. The spending on the sports infrastructure is now estimated to be around US$730 million, almost twice the value of Delhis winning bid of US$422 million for the contract back in 2003, and that the total cost to the city is predicted to be in the region of US$2.7 billion. Today, with cost so far removed from their initial estimates and interest in ticket sales dwindling, it is unclear just how much, if any, pro t the event will generate for the surrounding community.

Delhis race to the fi nish line

Th e spending on the sports infrastructure is now estimated to be around US$730 million, almost twice the value of Delhis winning bid of US$422 million for the contract back in 2003

Energy consumption in the Middle East region

is predicted to climb

45%by 2020 from levels in 2007


UPFRONT22

Mafraq-Ghweifat Highway (UAE Western Region)CLIENT: Abu Dhabi Department of TransportESTIMATED VALUE: US$2.7 billionDESCRIPTION: The Department of Transport is offering a 25-year concession to upgrade, operate and maintain the 327km Mafraq-Ghweifat Highway. Evaluation of bids is under way, with the winning bidder to be announced in the third quarter of 2010. The project is the rst transport-related public private partnership project to be undertaken in the GCC, and will involve the highway being widened to four lanes in each direction and upgraded to meet the highest standards in highway design, safety, communications and services to users. SCHEDULE: Widening and surface improvement work is due to begin this year and end in 2014.

Salam Street & Mina Road Development Phase 1 (Abu Dhabi)CLIENT: Abu Dhabi Municipality & Town Planning DepartmentESTIMATED VALUE: US$1.4 billionDESCRIPTION: A key route into and out of Abu Dhabi, the roads capacity will be increased to more than 6000 cars per hour in each direction. Work includes construction of a 3.1km, eight-lane tunnel, and the construction of 1.2km of roads leading into and out of the tunnel. This will serve projects on Reem, Suwa and Saadiyat islands, as well as the Mina area to the east of Abu Dhabi Island. A joint venture of Saif Bin Darwish Engineering Co. and Samsung Engineering & Construction was awarded the main construction contract early in 2008.SCHEDULE: Construction started in May 2008 and completion is pencilled in for the end of 2010.

Batinah Coastal Road Phase 1 (Oman)CLIENT: Supreme Committee for Town PlanningESTIMATED VALUE: US$712 millionDESCRIPTION: The 241km project involves construction of a four-lane carriageway running from Naseem Garden to Khatmat Malaha in Wilayat Shinas. Phase 1 of the project has been split into two packages. Package 1, worth US$325 million, was awarded to Turkeys Makyol and involves construction of a 60km road from Naseem roundabout to Sayyid Said bin Sultan Naval Base at Wudam Al Sahel. Package 2, worth US$387 million, was awarded to Indias Nagarjuna Construction Co. and involves a 65.7km road from Majees roundabout in Sohar to Khatmat Malaha.

SCHEDULE: Work on Phase 1 is underway and scheduled to nish in 2012.

Al Khor to Al Ruwais Road Phase 3 (Qatar)CLIENT: Authority of Public WorksESTIMATED VALUE: US$600 millionDESCRIPTION: The project involves further development of the Al Khor to Al Ruwais Road, as part of the ambitious, four-phase, multibillion-dollar North Road project. Phase 3 of the project is 61 kilometres long and will include four lanes in each direction. Works will also feature service roads with 11 cloverleaf junctions, ve camel crossing tunnels, an animal protection fence, two truck weighbridges, infrastructure works and landscaping. Dar Al Handasah is the project consultant, while Tekfen Construction was awarded the main construction contract in 2008.SCHEDULE: Construction work started in late 2008 and is due for completion in 2010.

Al Khail Road Upgrades Phases 1-4 (Dubai)CLIENT: Roads and Transport AuthorityESTIMATED VALUE: US$591.5 million DESCRIPTION: The project involves widening and improving a 15km stretch of Al Khail Road between the junctions at Muscat Road and Emirates Road. The existing road will be widened from four lanes to six throughout and the roundabouts along this stretch will be turned into flyovers to allow the uninterrupted flow of traffic. New slip roads and interchanges will be added to enable access to the new residential developments along this stretch. Al Khail Road will also be extended by nine kilometres to connect it to Dubai Bypass Road. SCHEDULE: Work on all four phases is underway and is due for completion in stages in 2010 and 2011.

Real estate developers may have endured a tough few years, but oil-rich governments in the GCC are continuing to invest in infrastructure. And thanks to rapidly expanding urban centres and rampant growth in the number of cars, road building is one area where governments are really focusing their attention right now.

While it may not be glamorous, road building is big business: for example, Dubais Road & Transport Authority has earmarked US$2 billion for project development in 2010, while Saudi Arabia allocated US$3.17 billion in its 2010 budget for construction of 6400 kilometres of roads. Last year, the country set aside US$3.06 billion for road construction.

Project focus: roads


AMECO AD.indd 1AMECO AD.indd 1 31/08/2010 16:5031/08/2010 16:50

UPFRONT24

1 King Abdullah Economic City, Saudi Arabia Described as a dynamic new age city for tomorrows generation of Saudi citizens, the King Abdullah Economic City is not short on superlatives. Comprising six components, this mixed-use mega-development will upon completion play host to two million residents and cover an area of 168 million square metres.Cost: US$50 billion

2 Madinat al-Hareer (City of Silk), Kuwait Kuwaits answer to the Burj Khalifa, the Madinat al-Hareer is currently in the design stages. The mixed-use development will span an area of 250 square kilometres circling a tower to rival the worlds tallest building in the UAE. The site aims to bring in close to half a million new jobs to Kuwait City. Cost: US$95 billion

3 Capital District, Abu Dhabi Masterminded by Abu Dhabis Urban Planning Council, this huge development is intended as a key component in to Plan Abu Dhabi 2030. Keeping sustainability at its core, Capital District will primarily serve as an administrative centre for government, education and information-based institutions for the UAE. Cost: US$40 billion

4 Al-Reem Island, Abu Dhabi A mixed-use development off the coast of Abu Dhabi, Al-Reem Island will comprise residential space, commercial space, a central business district and an ef cient transport system for residents and workers. Cost: US$30 billion

5 Yas Island Development, UAE Located between the coasts of Abu Dhabi and Dubai, Yas Island is projected to become one of the UAEs nest attractions. With world-class hotels, theme parks including Ferrari World Abu Dhabi and mega shopping malls and golf courses, Yas Island is certainly a head-turner, even by UAE standards. Cost: US$40 billion

6 Business Bay, DubaiSited at Dubai Creek, Dubais business hub, the Business

04

01

03

02

05

Top 10With a combined value of US$1.3 trillion, The MEED Projects Top 100 are worth more than the GDP of the entire GCC region that plays host to them. The announcement names some of the most innovative, cutting-edge and amboyant mega-projects in the world. MENA Infrastructure takes a look at the top 10.


UPFRONT 25

10

08

0706

09

Bay will provide of ce buildings as well as some freehold residential accommodation. Cost: Unknown

7 Jazan Economic City, Saudi ArabiaA mixed-use mega-development comprising residential, commercial and industrial areas, Jazan Economic City will cover an area of 117 square kilometres.Cost: US$3 billion

8 Saadiyat Island, Abu Dhabi Half a kilometre off the coast of Abu Dhabi, Saadiyat Island is an attractive development projected to serve as a popular destination. When completed, the island will include features such as relaxed water front properties and golf courses. Cost: US$27 billion

9 GCC Railway Network, GCCArguably long overdue, the multi-billion dollar rail network will provide ef cient and much needed business links, not to mention commercial transport, around the countries of the GCC region. Cost: Unknown

10 Kingdom City, Saudi ArabiaAnother rival to UAEs Burj Kahlifa, the Kingdom Tower is the centre piece to this mega-development, Kingdom City, near Jeddah in Saudi Arabia.Cost: US$26.7 billion


UPFRONT26

The design standards used to implement the requirements of the building and re codes NFPA, UL, FM, EN and others are all highly respected among industry professionals; compliance with these industrial design standards is often spelled out in the national codes, and therefore obligatory. But what is one to do when the prescribed design standards fail to achieve the life safety and capital asset preservation intended by the national building and re codes? What to do when the successful extinguishment rate of the tank re protection systems designed under these standards is consistently very low?

The TFEX research team has developed and proven a new tank re extinguishing technology that is based on new scienti c discoveries, called FoamFatale. TFEX research discovered that the critical application rate increases in accordance with the increase in tank diameter. In larger tank diameters, the critical foam application rate belonging to that particular diameter likely exceeds the application rate recommended by the traditional design standards. The foam will never reach the middle of the liquid surface, therefore the extinguishing time is in nite in other words, the re cannot be extinguished. This information is con rmed by industry test data reaching back to the 1970s, when large storage tanks were rst built.

In contrast, the TFEX application rate requirement progressively changes with the tank diameter, and is always higher than the critical application rate for the tank. The prescription of an extremely high application rate results in a maximum of two minutes extinguishing time at any size of storage tank.

The enormous losses in assets and human lives, as well as the great environment pollution associated with storage tank res, are unacceptable in todays society. The current situation can be improved by a quick reformation of the applicable design standards and by revision of the governing re codes to impose a new standard of safety on existing tank installations. EN approval of FoamFatale shows that professionals listen to the wind of change.

For more information, please visit: www.foamfatale.com

With the West still reeling from the effects of the recession, it seems that that MENA region now has some of the most exciting retail growth prospects in the world. According to the ninth annual Global Retail Development Index study by management consultancy rm A.T. Kearney, countries such as Kuwait, Saudi Arabia and UAE all look set to become prime destinations for retail development.

The regions oil wealth has been cited as a strong stimulus for the rapid scal recovery in the region. The attractiveness of the MENA retail markets provides ample opportunities for regional as well as global retailers, explains Martin Fabel, a Partner at A.T. Kearney. Our research stresses that establishing operations in a portfolio of countries both small and large offers the best path to global success for retailers.

While this news undoubtedly represents exciting prospects for the regions retail market, it also highlights a knock-on effect on the construction sector. The July reports from property consulting rm Cluttons highlighted that while the downturn had hit the retail sector and caused rental rates to plummet, the recovery was bringing renewed interest in the region. The rms Saudi Arabia report indicated that a great number of Riyadh shopping malls, particularly in the more af uent areas of the city, were operating at 100 percent capacity, suggesting that with more retailers looking to move into the region, demand for retail property will be renewed.

On the other hand Bahrain, the smallest of the GCC nations, is currently going through a period of population stabilisation, which is resulting in a slowing down of the retail market, according to reports. This combined with an ongoing boom in retail property development is likely to result in an oversupply in this sector. The Cluttons Bahrain report in July stated that, With approximately 450,000 square metres of additional retail space planned to come online by 2015, the Bahrain retail market looks set to suffer from a continued supply-demand imbalance.

Updating fi re protection standardsA thorough revision of tank fi re fi ghting technology standards is unavoidable this is what Istvan Szocs, CEO and owner of TFEX Ltd, concluded when he analysed the current standards.

MENAs booming retail sector?


UPFRONT 27

as scope of usage, whether as a guardhouse, basic or luxury residential applications in any environment, IT or infrastructure protection or storage facility both over and underground. Installation of all technical equipment can be done during production, allowing turnkey delivery and short installation times. All installed doors and windows are tted with a patented blast protection system that makes the Unival security containers a unique protection concept with wide application potential. The system offers long-term value and multi-mission operation ability.

All protection container series can be tted with the Unival digital jammer line SWJ1 for stationary applications, which adds protection against RCIEDs and unwanted communication, while implementation of the Unival handheld explosive detection system HEDD1 adds covert and remote detection of most explosive substances as well as weapons and ammunition.

Companies in this issue are indexed to the fi rst page of the article in which each is mentioned.Company Index Q3 2010

A. T. KearneyAbu Dhabi National Exhibitions Company (ADNEC)Abu Dhabi Ports Company (ADPC)Abu Dhabi Urban Planning CouncilAjmera Mayfair GroupAl Baraka Banking GroupAl Habtoor Leighton GroupAl Rajhi GroupAl Rayyan Tourism Investment CompanyALDARAlmcoAluma SystemsAmecoAquariusArcapita BankArjaan RotanaAshurstAtlantis CorporationAWE PaintsBahrain BayBELIMOBiddle BVBK GIULINIBomagBPCB Richard EllisCluttonsColliersComApConnor Walsh GolfContax PartnersCooperation Investment HouseDAMACDELTA Light & OpticsDeutsche Bahn InternationalDeutsche Bank

7428

28504242282828

74544, 2119, 23140, 1414242100, 101142, 1431094270, 7172, 73110, 11161547474748, 121151122, 12342422, 88, 899813, 100, 103

DMG World MediaDohalandDrake & Scull InternationalEC HarrisEmirates Golf ClubExxonMobilForst & SullivanFour Seasons HotelFrangible Safety PostsGannet FlemingGeoDecisionsGlobal Traf c technologyGolf in DubaigolfmarnochGulftainerHoffmanHoneywell Life SafetyHyatt GroupInternational Energy AgencyInternational Renewable Energy AgencyInternational Road DynamicsInternational Water AssociationIschebeck TitaniStrategyJOTUN PAINTSJumeirah Golf EstatesKanoo TowerKEMAKhaleejCapitaKoheejiKPMGKryton International Inc. Latchways Fall ProtectionLenzen Hebe-Und FoerdertechnikLusail Real Estate Development CompanyMasdar

OBC929235, 8414854854290, 9150, 515081148152, 1535410768, 69, 12528118118

8313540, 41125110, 11314842124424214848, 49, IBC47144, 1145154

118

McLanahanMourjan Marinas IGYMowasalatNACE InternationalNUKOTE ARABIAOmegaOrangeBoatPANOLIN AGPetronasPure Water CorporationQatar Foundation for Education, Science and Community DevelopmentQatar Public Works AuthorityQatar Urban Planning and Development AuthorityQatari Diar Real Estate InvestmentRaf es City BahrainRayadah Investment CompanyRoadex/RailexSalhia Real Estate CompanySchlumbergerScicorp International CorpSiemensT-FexThe Nickel InstituteTroon Golf Middle EastT-Track Saudi Central MiningUnivalUticoVolvoWagner Fire Safety Management ConsultantsWaslWater Environment FederationWeatherfordWSP Fire

38, 3915498106110148138, 139116, 1175413292

9898

98422897425411, 132, 133IFC, 86, 8726, 6536, 37148100, 10527, 63126, 12752, 536, 66, 67

1481355462

IEDs have become the signature weapon of international terrorism, as they are relatively cheap and easy to manufacture and the effects created with such unsophisticated methods truly threaten public security and economic stability. Protection has proven extremely dif cult, and concepts in countries such as Afghanistan, Pakistan, Iraq and others have often failed for the reason that standalone security concepts have been installed. The way to improve security is by installing multi-level security concepts with interacting complementary products.

Unival is launching a new modular concrete container and housing series that offers full protection against military ri es and blast attacks up to the highest STANAG levels, but also adds re protection as well as burglary protection. The highly exible concept allows full customisation in terms of size and design as well

Multi-level blast securityUnival Group is a German-based security solutions provider with a strong focus on blast protection technologies that is currently launching a new multi-level security product line with a special focus on IED protection.

For more information, please visit www.unival-group.com


THE BIG INTERVIEW28

Al Habtoor Lead.indd 28Al Habtoor Lead.indd 28 16/09/2010 10:0016/09/2010 10:00

THE BIG INTERVIEW 29

Talk about being thrown in at the deep end. While most executives spent October 2009 struggling to get to grips with the worst recession in living memory, Laurie Voyer faced an additional challenge: fi nding his feet as head of one of the Middle Easts biggest construction and engi-neering fi rms. In many ways, his appointment as CEO and Managing Director of Al Habtoor Leighton Group couldnt have come at a worse time for the 35-year industry veteran: the fi rms home market of the UAE had been hit hard by the fi nancial crisis, with real estate prices in Dubai plunging some 60 percent from their peak in 2008 and billions of dollars worth of projects being put on hold. Credit markets had tightened signifi cantly, making project fi nancing much harder to come by. And the company itself had suff ered losses on its order book as a result of the downturn, mainly because it focused overwhelmingly on the commercial property sector. Notable setbacks were the suspension of the US$1.6 billion Tameer Towers project in Abu Dhabi, and the suspension of the Trump Tower Project in Dubai.

But negativity is not in the genial Aussies nature. Indeed, while the one-year an-niversary of the global fi nancial crisis provided the backdrop to his accession to one of the regions most prominent business positions, Voyer was much more concerned with the next phase of the companys future development regional expansion and the greater diversifi cation of its service off erings than he was with dwelling on the downturn. With much of its business located within the UAE (Al Habtoor currently generates around 80 percent of its revenues from within the country) it was time for a new strategy. As such, Voyer focused on building key partnerships across the Gulf in a bid to tap into the markets that proved most resilient to the global recession.

Its an approach that is starting to pay dividends. Key growth areas for Al Habtoor Leighton are Abu Dhabi, Qatar, Saudi Arabia and Kuwait, all of which weathered the fi nancial maelstrom better than most, and with the possibility of further ventures into locations such as Libya and Iraq on the horizon, the future looks relatively bright for the company, despite the regions recent economic problems. Al Habtoors total order book is expected to rise to around Dh30 billion over the next 12 months from around Dh22 billion, and Voyer believes the company will generate about 50 percent of its revenues over the next two to three years from outside the UAE. I think the business over the next couple of years will change for us, he explains. I expect in the next two or three years the surrounding Gulf countries will contribute about the same as what the UAE has done for us in the last couple of years.

Here, Voyer talks to MENA Infrastructures Senior Editor Ben Th ompson to discuss Al Habtoor Leighton Groups current areas of focus and what the next few years will hold for the construction giant.

Following the slowdown in Dubai, Al Habtoor Leighton Group already one of the largest construction rms in the UAE has set its sights on becoming the Middle Easts engineering powerhouse. MENA Infrastructure caught up with CEO Laurie Voyer to discuss expansion, experience and the value of doing the basics well.

By Ben Thompson


You assumed your current role as CEO at a dif cult time, one year into the global recession. How do you think your rst 12 months charge has gone?Its certainly been an interesting year, as you can well imagine, but Ive also enjoyed what Ive been doing here im-mensely. Of course, its disappointing to read about all the things that are occurring in terms of project cancellations and postponements and the negativity about the industry that goes along with that but perhaps these events were just the natural result of a market that was overinfl ated anyway.

Th e current downturn is just a matter of correction that is what we anticipate it to be, anyway and from our point of view we still have a fairly positive outlook for our business here in the UAE and the other gulf countries as well.

Where do you see the particular hotspots for growth in terms of Al Habtoor Leighton Group?We think that the future is probably outside the UAE initially. But having said that, we are very confi dent well continue to have a strong, robust business in the UAE in the future, much the same as it is today. I dont think well see any deterioration or reduction in the business from a UAE perspective. But were not here just to be UAE con-tractors we are establishing ourselves in the other coun-tries of the gulf, too. I expect in the next two or three years the surrounding Gulf countries will contribute about the same as what the UAE has done for us in the last couple of years. So were in the process of registering our company in Kuwait, Saudi Arabia and Bahrain, and were going to con-tinue with that thrust. And I think by the end of the year, well have had all that groundwork pretty much established from a business development point of view. So thats the current challenge, I guess: to geographically diversify the business outside the UAE.

Expansion is key for any business. But its not just di-versifying the business geographically; its also about diversifying your scope in terms of the skill sets and the services that you can offer, isnt it?Th ats absolutely correct. We are well known here in the UAE as principally a building contractor and a very good building contractor for that matter, particularly in terms of our work on high-rise developments. But were now looking to clip on additional off erings, especially regarding the civil engineering aspect. Th e market here has much to off er in this regard, and we see signifi cant growth coming from that add-on feature. As a result, were shift ing from a focus on

Many of the strategies that are helping us navigate through the current downturn are ones that will benefi t us in the long-term"

ExvedivseTh UAbuouto enthad

THE BIG INTERVIEW30

Saadiyat LinkLocation: Abu Dhabi, UAE Contract value: US$681 million Client: Tourism Development and Investment CorporationCommencement: 2007 Completion: 2010 Leighton Contracting was responsible for the construction of 20.3km of road network including 6.5km of 10-lane expressway linking Abu Dhabi City with Yas Island. In addition to the construction of the expressway and local road network, the project scope included six major bridges with a total deck length of 1.6km, four bridges over the golf course cart access track, 870 metres cut and cover tunnel, a high and low voltage power distribution network including 17 streetlight substations, a bre optic telecommunications cable network and various other mechanical, electrical and civil works.

In addition, work included a 30km potable water network, including three groundwater storage tanks with a combined capacity of 25.4 million imperial gallons, plus a pumping station, substation, generator building with associated fuel storage facilities, MCC building, chemical dosing building and a guard house; a 10.7km stormwater drainage network, including three pumping stations complete with MCC and generator buildings and associated fuel storage facilities; and a 22.3km sewerage system including a sewage pumping station and sewage treatment plant.



high-rise residential and hotel projects to hospitals, educa-tional facilities and road and civil infrastructure, and will continue to move towards a 50/50 split between the two.

What do you think have been the major highlights for you in your rst year in charge and where did you face the biggest challenges?Were still here; thats the big highlight. Th ere are plenty of fi rms that have struggled through the recession its been a tough 18 months but I think weve navigated through it pretty well. When the global fi nancial crisis hit everyone automatically feared the worst, but I think we pretty much

planned to be where we are right now. It sounds a bit corny, perhaps, but we took stock of ourselves and had a very outward-looking view of what would happen based on our experience of the industry and our knowledge of our own strengths and competencies. In terms of the economic situ-ation, we are where we are. Its probably disappointing if you were to wind the clock back two or three years and look at the projects that were being planned and the profi ts that were being made back then, but these types of corrections do happen in our industry and thats where the challenges lie.

Youve weathered the storm better than most. What have been the key decisions that youve taken during that tough period to help set yourself up for the future? Because its not just about weathering the downturn; its also about positioning for growth when the upturn comes.About four months ago, we undertook a very detailed review of our business. We looked at various scenarios and possible outcomes, both optimistic and more pessimistic, and decided where we should be at various stages over the next few years. And we feel were pretty much on track. We tuned our business according to those expectations as well as the type of projects we want to be doing, the sort of conditions and the risks wed like to undertake, and also the prices were prepared to accept. At the end of the day, managing your business in tough times makes you think about the fundamentals more, and thats not necessarily a bad thing. It makes you consider key decisions more care-fully. And hopefully, because of the in-depth analysis work we did to establish exactly what position the business was in, well prove to have taken the right decisions, both in the short term and over the longer term, too.

Of course, balancing those short-term needs against the long-term vision for the company goes to the heart of what it takes to be a successful manager. So how do you strike that balance, and what are your longer-term goals for Al Habtoor Leighton Group?Well, many of the strategies that are helping us navigate through the current downturn are ones that will benefi t us in the long-term, too. So weve been looking at a lot of per-formance-based issues such as cost control, programming and planning, productivity improvement, and getting closer to our workforce. Weve been looking at all of those challenges as we go through this diffi cult period to better align the high-performance part of our business and retain all our high-performance individuals and subcontractors and workforce so that we are a much stronger business as we come out the other side.

So maybe you could tell us a little bit about the agship projects youre currently working on in the Middle East. What are the big developments for you right now?Were in the throes of handing over the fi nal phase of the Sorbonne University in Abu Dhabi. Were also part of the Zayed University development project, also in Abu Dhabi. Th e Capital Gate Project is also on track, and is a fl agship

HLCs order book is forecast

to hit

Dh30m in the next year

Al Shaqab Equestrian Academy Location: Qatar Contract value: US$473 million Client: Qatar Foundation Commencement: 2006 Completion: 2011 Leighton is responsible for the construction of the Al Shaqab Equestrian Academy in Qatar, a project for the Qatar Foundation for Education, Science and Community Development. The world-class equine management facility includes standard competition facilities, facilities for HH The Emir and Royals, an equine breeding facility, an equine hospital, an Olympic-standard indoor arena with an adjoining outdoor arena and a members clubhouse and stables for the members horses.

The state-of-the-art stables include separate facilities for different categories of Arabian horses such as breeding and show horses, endurance horses, dressage horses and show jumping horses. Additional construction works include the refurbishment of historic structures around the worksite, staff accommodation, entertainment facilities, a museum and associated infrastructure works.


through years of working on some of these huge landmark projects on the other.

A growing focus on safety has been one thing thats been common across the Gulf for contractors and de-velopers alike. So what are you doing to improve safety operations at HLG?Th is was a major part of our performance management campaign earlier this year, where we challenged ourselves to improve operations by making workers and line man-agement more aware of the risks involved in the construc-tion process. We had a safety summit this June where I got all the senior managers together, as well as our key suppliers and subcontractors and other joint venture part-

Th e fact that the Middle East has to import a fair amount of its product suggests that the concepts of sustainability and energy usage have got a big future in the region. Sustainability is just good business

Doha City Centre ExpansionLocation: QatarContract value: US$325 millionClient: Al Rayyan Tourism Investment CompanyCommencement: 2005Completion: 2010

The Doha City Centre Expansion project involves the construction of ve towers with a direct link to the existing Doha City Centre, one of the largest malls in the Gulf. The project is divided into three phases and has a total built-up area of around 330,000 square metres. The podium is 27,000 square metres and the towers are 10,000 square metres, narrowing to 700 square metres at the top.

The scope of work on the project includes an RCC structure, external cladding with a glazed curtain walling system, MEP services, a conveying system, and soft and hard landscaping. Phase one includes the construction of the 258-room, 50-storey Marriot Renaissance, the 204-room and 124 executive apartment 50-storey Marriot Courtyard, and a podium. Phase two includes the construction of the 200-room, 50-storey Shangri-La Tower, the 50-storey Rotana Tower and a podium. Phase three involves the construction of the 48-storey Merweb Tower and a podium.

project for us. Th e Hyatt Group just announced they are going take the fi t-out on that building and are hoping to have a hotel opening there early next year, which is good news. We handed over on the Saadiyat Island link project last year, but we still continue to work on that program as they still have parts that need be completed this year. Were looking at bidding on the Louvre project and also the Gug-genheim Museum, and have prequalifi ed for both of those projects. Meanwhile over in Qatar, we handed over about 30 percent of the Al Shaqab Equestrian Centre in the last month of July. So weve been extremely busy.

I know that Saudi Arabia is currently a big market for the construction and infrastructure industries. How do you see your company expanding into the Saudi market?Were in a consortium over there with the Al Rajhi Group, and are working alongside them on the ITCC project just outside Riyadh. Th ats going pretty well now. Were still formalising our operations in Saudi Arabia at the moment, but I feel fairly confi dent that by the end of this year we should have established a couple of contracts on our own terms. Were just taking it cautiously; there is a lot of ex-citement about the potential in the Saudi Arabian market and lots of opportunities on off er, but we want to establish ourselves properly before we start beating the drums too hard over there.

Elsewhere in this issue, were also looking at the pro-cess of rebuilding Iraq. Obviously, Iraq offers huge chal-lenges as well opportunities. Is this something you feel that HLG might get involved with in the future?Yes, absolutely we will, and were considering our op-erations there at the moment. Having said that, we want to settle down on our Saudi and Kuwait operations fi rst which will probably take us another couple of months and then well see where we are. But weve already started to look into Iraq. I cant make any more comments on that at this stage, but its defi nitely on the radar, and probably in the medium term we would be keen to go to Iraq.

Your rm has worked on many of the Gulfs most pio-neering projects. What do you feel youre able to bring to these developments that makes you the contractor of choice for the regions landmark building projects?I think fi rst and foremost, Al Habtoor Leighton Group has a very strong understanding of both regional business ethics and international best practices, and that comes from the blend of skills and knowledge off ered by the coming to-gether of two companies. Were very well connected to the supply chain, and the international experience and project management skills of the Leighton Group, plus the local experience of the Al Habtoor Group in this area, off ers a pretty unique combination. I feel pretty excited about the ability of those two groups to continue moving as one into these new areas. We have the best of both worlds, really, with the local expertise and the local knowledge on the one hand, along with the international expertise garnered

THE BIG INTERVIEW32



I

stance, our Th iess Services business recently opened a new specialised processing plant designed to manage construc-tion and demolition debris. Th e plant allows construction waste to be processed and recycled for other uses such as road-base, general fi ll and aggregate for construction and infrastructure projects. Under a contract with the Abu Dhabi municipality, were now recycling those building products and reusing them back into the Abu Dhabi market. Its a cleaner, greener way to manage construction waste.

Information Technology and Communication ComplexLocation: Saudi ArabiaContract value: US$685 millionClient: Rayadah Investment CompanyCommencement: 2009Completion: 2012The scope of work on the ITCC project includes excavation and enabling works, construction of the structural frame, masonry works, complete architectural works including metal works, wood works, thermal and moisture protection, doors and windows, aluminium and curtain wall nishes, elevators, specialties, special construction electro-mechanical and external works.

Within the scope of this rst phase of development is a central of ce complex comprised of four towers, each with ve basement levels, a ground oor entry level and 19 upper oors. The ancillary buildings include a central services building, an e-library, health club, mosque, an R&D building, an incubator building and a central main plaza spine and facade. It covers a development area of about 800,000 square metres. The site is located in the Al Nakheel district, approximately 15 kilometres west of Riyadh city centre, at the junction of two major roads King Abdullah Road and Prince Turki Ibn Abdul Aziz Street.

ners, in order to take time to remind ourselves about the importance of safety. In my mind, safety is a key part of the performance of the business going forward, and it is critical that we put the right attention into safety because a safe site is generally a very productive site; likewise, a clean and well-managed site is likely to be a more productive site as well.

Safety is very much about good planning, and if I see good safety statistics at a particular site, generally speaking its a refl ection of the good management and planning thats gone into running the job. So safety is a very high focus area for our business both from an operational standpoint, but also from a management perspective as well.

I guess its as much a cultural thing as anything else: instilling that safety culture within the group as a whole, so that it becomes second nature.

People talk about culture, and I think youre right: there has been a shift in the way people approach their work here with regards to safety. But from my point of view, safety is just one of a number of accepted best practices that you need to embrace in order to be a sound manager. In our business, a professional manager manages costs and man-ages time and manages people to the best of their ability. And all of those things are extremely important. So its not just about safety, not just about cost, not just about time. It should be about all three being combined to make sure we get the best out of our company and out of our projects and out of the people who work for us. And thats what tough times do: they force you to refocus more on the funda-mentals of the business, and how you can achieve the best results by getting the basics right.

Something else thats been a huge area of focus in recent years in the construction industry is the idea of sustainable development. How is Al Habtoor Leighton building a greener focus into its design and develop-ment processes?From our point of view, sustainability is a key requirement for any responsible company. Corporate governance and corporate responsibility are paramount, certainly from my experience in Australia with the Leighton Group; we embraced that very strongly in all of our construction and mining activities in Australia, not because we were forced to do it from a legislative point of view but because we identifi ed it some years ago as a point of diff erentiation. Its certainly growing in interest here. We are both responsive and responsible in terms of what we do. But I guess at the end of the day, we need to make sure our clients and cus-tomers and the rest of the supply chain are keeping up with us in some of these new initiatives.

In terms of the design and construction responsibil-ity, were very much part of that. Design is not such a big part of our business here at the moment, because a lot of our clients still wish to retain control over design. But as we use our track record and reputation to convince more of our customers that we can be good, responsible designers, this will give us a chance to leverage some of the skills and knowledge that we have within our associated businesses to bring about a greener focus on the building process. For in-

Al Habtoors Capital Gate project

consists of over

20,000m2of of ce space


In that respect, its not just about construction com-panies showing a greener, more sustainable focus; it has to come from the client as well. Do you think there needs to be greater education as to the bene ts and the advantages of sustainable construction?I think there have been some great initiatives, but were certainly not at the level we need to be just yet. When I was with the Leighton Group back in Australia, we were at the forefront of responding to clients demands regarding sustainability in some of the building contracts we won, for which we were awarded six-star ratings for both design and construction, which was unheard of before then. So we set the benchmark pretty high and we attained it, which does show that it can be done. And I think the client enjoyed the process as well because they got all sorts of benefi ts from it, from energy savings to operational cost savings to great PR. However, that was a few years back and were still talk-ing about pushing the benefi ts of sustainability.

Nonetheless, I do think the tidal wave is about to happen, because in many cases, these kind of benefi ts can bring real tangible money-saving and cost-saving advan-tages as well. We have certainly found that. Our own focus on sustainability forced people to be far more diligent in looking around for products and materials and companies to work with. And as a result of that, I think it put some uniqueness in our product; sustainability became a point of diff erentiation. So in my mind theres no doubt that we should all be more responsible in terms of our consump-tion of energy and the way we approach sustainability. And we will be making sure we step up to the plate on that.

So what impact do you think sustainability will have on the Middle Easts construction and development sector over the next few years? Do you think the Middle East has the potential to become a pioneer in terms of sus-tainability?Weve certainly seen political statements to support that, and the fact that the Middle East has to import a fair amount of its product suggests that the concepts of sus-tainability and being more conscious about recycling and power consumption and energy usage have got a big future in the region. Sustainability is just good business. I cant understand why it should still be seen as a costly business proposition; thats just short-term thinking in my opinion. Over the longer term, its got to be benefi cial.

And so whats your outlook for the regions construc-tion industry and HLG within that sector over the next 12-18 months?Th e budget and the forecasting weve done suggests that 2010 has been a marginally better year than 2009, and that 2011 will probably show a similar increase on this year in terms of fi gures. So were being cautiously optimistic in terms of what our expectations are for next year. To be honest, were just looking at it as business-as-usual, with natural growth being bolstered by our overseas expansion. Hopefully, our investments in moving into other countries will pay off and give us that little bit of an uplift that were

looking for in terms of our results. Its consistent with what I said before we want the UAE to hold itself up as it has done and continues to do; and then the uplift in our busi-ness will come from the investments weve made in other parts of the region, outside the UAE.

Do you see any external trends or developments in u-encing the construction sector in the Middle East over the next couple of years?It would be great to see some of our international competi-tors retreat back to their countries of origin, so we could be left alone here to run the Middle East as we would like to.

An HLG empire?Its got a nice ring to it. Put that in the article. Th at would be great.

Record breakerCapital Gate in Abu Dhabi has been certi ed as the Worlds Furthest Leaning Manmade Tower by Guinness World Records. Currently under construction by HLG, Capital Gate, owned and developed by the Abu Dhabi National Exhibitions Company (ADNEC), has been built to lean 18 degrees westwards - more than four times that of the world famous Leaning Tower of Pisa. Capital Gate earned the Guinness recognition after rigorous evaluation by the Awards Committee, following exterior completion of the 160-metre, 35-storey tower earlier this year.

Capital Gates oor plates are stacked vertically to the 12th storey, after which they are staggered over each other by between 300 millimetres to 1400 millimetres, giving rise to the towers dramatic lean. The tower features other innovative construction techniques including the worlds rst known use of a pre-cambered core, which contains more than 15,000 cubic metres of concrete reinforced with 10,000 tons of steel. The core, deliberately built slightly off centre, has straightened as the building has risen, compressing the concrete and giving it strength, and moving into (vertical) position as the weight of the oors has been added.

The Capital Gate structure has been a most challenging and enjoyable engineering project, said Senior Construction Manager for Al Habtoor Leighton Group, Leslie Fairchild. Every day has brought new challenges for the team, requiring us to come up with some exceptional solutions. We have a very strong site team and excellent sub-contractors who worked closely together to ensure the projects success.

THE BIG INTERVIEW34


A DV E R TO R I A L

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ASK THE EXPERT36

Stainless steel roofi ng, sunscreens and wall panels score highly on the solar refl ective index as they absorb less heat than many other construction materials, so reduce demand for energy from air-conditioning. It is also healthy, in that stainless steel does not create toxic run-off that can damage the surrounding environment or produce harmful chemical emissions when deployed inside buildings unlike carpet and drywall allowing a wide range of attractive interior fi nishes to be used. Stainless steel buildings require only the application of ordinary, non-environmentally damaging, household detergent or window cleaner to keep their exteriors clean.

A great deal of infrastructure continues to be erected in the Middle East, from sea walls and building foundations to bridges. Because the soil, air, water, sand and concrete in coastal areas has a very high sea salt (chloride) content, the employment of stainless steel for both reinforcing bar and other structural components can provide infrastructure capable of 100 or more years of life, as well as seismic and fi re protection and security against blast impact.

Stainless steels are also important in minimising the use of precious potable water and are used extensively in desalination plants and in building systems for capturing and reusing grey (waste) water such as tanks, piping and fi ltration systems, so that wastewater can be utilised for other purposes, for example for fl ushing toilets and irrigat-ing landscapes.

All in all, nickel-containing stainless steels could not be a better choice for ensuring sustainability in construc-tion in the Middle East.

Further information can be obtained from the Nickel Institute, a not-for-pro t organisation that represents the interests of the companies that together produce more than 90 percent of global annual nickel output on www.nickelinstitute.org.

Nickel use in Middle Eastern infrastructure

How does the use of nickel-containing stainless steels in architecture and construction contribute to sustainability in the Middle East? By the Nickel Institutes Catherine Houska.

Sustainable development is high on the agenda as construction in the Middle East emerges from the global recession and the region focuses on contin-ued expansion aft er the boom years of the early 2000s. Th e need for longevity with service life require-ments of up to 150 years, together with the areas harsh climate, make nickel-containing stainless steels the mate-rials of choice for both new buildings, such as Abu Dhabis Central Market project, and infrastructure.

Achieving long service life without replacement or signifi cant maintenance reduces the direct costs of replace-ment and indirect impact associated with service disrup-tion. It also minimises the environmental impact of raw material replacement and maintenance tasks. Stainless steel is used in applications ranging from reinforcing bar for sea walls and bridge decks, to stunning building exte-riors, owing to its corrosion resistance, which has a direct eff ect on long-term sustainability.

Most stainless steels utilised in the Gulf are higher alloy nickel-containing austenitic and duplex stainless steels because of the aggressive environment. Th e nickel addition makes forming and welding the steels much easier and they also provide a broader range of texture, colour and other fi nish options that are uniform in char-acter and striking in appearance. Due to these factors, they are increasingly being used in c

MENA Infrastructure 6

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