SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT Construction WEEK NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST MAY 23–29, 2009 [273] An ITP Business Publication CONSTRUCTIONWEEKONLINE.COM INSIDE NEWS Saudi Government reforms to attract foreign investment PAGE 11 ANALYSIS Is it time for the construction industry to focus on KSA? PAGE 16 FACE TO FACE Industry experts discuss Saudi’s sponsorship system PAGE 18 10 TO KNOW Getting started in KSA? CW digs out suppliers to know PAGE 42 CITY FOCUS The latest projects, news and tenders from Jeddah, KSA PAGE 52 SUPER SIZED SAUDI’S DEPUTY MINISTER FOR TOWN PLANNING URGES FOREIGN FIRMS TO SET UP IN THE KINGDOM EXCLUSIVE Dr Abdulrahman Al Shaikh SUCCESS SAUDI ARABIA SPECIAL • SAUDI ARABIA SPECIAL • SAUDI ARABIA SPECIAL
Transcript
SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT
ConstructionWEEK NEWS, ANALYSIS, PROJECTS,
TENDERS, CLASSIFIEDS, ANDJOBS IN THE MIDDLE EAST
MAY 23–29, 2009 [273]An ITP Business Publication CONSTRUCTIONWEEKONLINE.COM
INSIDENEWSSaudi Government reforms to attract foreign investmentPAGE 11
ANALYSISIs it time for the construction industry to focus on KSA?PAGE 16
FACE TO FACEIndustry experts discuss Saudi’s sponsorship systemPAGE 18
10 TO KNOWGetting started in KSA? CW digs out suppliers to know PAGE 42
CITY FOCUSThe latest projects, news and tenders from Jeddah, KSAPAGE 52
SUPER SIZEDSAUDI’S
DEPUTY MINISTER FOR TOWN PLANNING URGES FOREIGN FIRMS TO SET UP IN THE KINGDOM
EXCLUSIVE
Dr Abdulrahman Al Shaikh
SUCCESS
SAUDI ARABIA SPECIAL • SAUDI ARABIA SPECIAL • SAUDI ARABIA SPECIAL
CONTENTS
15 EVENTSIndustry dates for your diary.
16 KSA ANALYSISIs Saudi Arabia the place to be?
18 FACE TO FACEIndustry experts discuss the current system of private sponsorship.
REGULARS2 ONLINE4 MAIL
FRONT11 SAUDI GOV REFORMS TO ATTRACT FOREIGN INVESTMENTSSaudi Arabia is looking to soften regulations governing foreign land ownership, which could boost construction in the Kindom.
12 CONSTRUCTION WEEK SAUDI ARABIA CONFERENCE NEWSExtensive coverage from our conference that took place in Jeddah last week. News, updates and people who were spotted at the event. 14 NEWS IN PICSTopical images with the latest news.
FEATURES20 EXCLUSIVE INTERVIEWDeputy minister for town planning Dr Abdulrahman Al Shaikh says KSA is the place to be in.
22 SPECIAL REPORTCW looks at the benefi ts of free zones.
29 SAUDI 10 TO KNOW CW draws up a list of 10 people in Saudi Arabia that you should consider taking out for a coffee.
32 SITE REPORT Saudi Arabia editor Benjamin Millington reports from the 18th fl oor of Jeddah Gate.
BACK52 CITY FOCUSThe latest projects, news and tenders from Jeddah, Saudi Arabia.
54 CONSTRUCT SAFEThe industry’s very own comic strip on health & safety best practices.
48 DIALOGUEGCLA’s Geoff Sanderson tells us why moving to Saudi Arabia was a good idea.
MAY 23-29, 2009 | ISSUE 273
1MAY 23–29, 2009 CONSTRUCTION WEEK
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22
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32
CONSTRUCTION WEEK MAY 23–29, 20092
ONLINE POLLWHY IS KSA THE PLACE TO BE FOR CONSTRUCTION FIRMS?
41.67%There are more contracts due to government projects
41.67%Oil money feeds construction
11.11%It’s an unexplored region so a less congested market
5.56%Better laws and regulations
MOST POPULARDEPA SAYS WORKING ON BURJ DUBAI A ‘NIGHTMARE’EMAAR PROPERTIES TO RECRUIT 1600 NEW STAFF10 BIGGEST INFRASTRUCTURE CONTRACTS IN KSAGTCC SCOOPS US $109MN ABU DHABI CONTRACT
FEATURES
TO VOTE IN THIS WEEK’S SPOT POLL GO TOwww.ConstructionWEEKonline.com
HAVE YOUR SAYJOIN THE DISCUSSION
Scores of disgruntled investors have spoken out against Damac following last week’s interview with its CEO Peter Riddoch, fi nd out what they had to say and post your comments.
Video
KING ABDULLAH
ECONOMIC CITYWatch our clip for a complete overview of this multi billion dollar mega project in Saudi Arabia.
Construction
LAW 13 AMENDMENTMohammed Kamal of Lovells’ asks Emad Farouq, senior legal counsel of the Dubai Land Department about the law’s implications.
Facilities management
2009 AWARDSFind out who the winners are in this year’s award ceremony held in Dubai on Tuesday.
Comment
FIRE SAFETYAli Sharif of Gulf International Trading Group explains the importance of choosing the right materials.
The US $8 billion development in Madinah is one of Saudi Arabia’s four economic city projects. Built on 4.8 million m² of land and incorporating 8 million m² of built-up space, offi cials say it will generate some 20,000 local jobs once complete. See a selection of images online at www.ConstructionWeekOnline.com
IN PICTURES: KNOWLEDGE ECONOMIC CITY
ONLINEwww.ConstructionWEEKonline.com
CONSTRUCTION WEEK MAY 23–29, 20094
MAIL
WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email [email protected]. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest Middle East business articles.
RE: DEPA SAYS WORKING ON BURJ DUBAI A ‘NIGHTMARE’If a project has become successful, people must thank the whole team who worked on it. The hardship of labourers must be understood by the leaders sitting in their air conditioned offi ces. JITENDRA
Depa should be proud of building such an iconic tower even though millions of obstacles must be faced. If I was head of Depa, I would tell the world that I am the
RE: BAHRAIN LABOUR FEES WILL STAYIf suffi cient notice is given then these fees should be factored into the cost and then passed on to the customer. If they are unable to do this then the entire cost strategy has to be reviewed and the business has to move fast on to other areas of trade.ZUHAIR BAGHDADWALA
RE: SAADIYAT LABOUR CAMP SET TO OPENI wish to thank David Sharpe and his team for delivering the project on time.KHALID ELMANDOUH
RE: ARE RECORD-BREAKING PROJECTS WRONG?I think in the current market scenario, sustainability of a project is more important, instead of going in for mega-size projects. Developers should fi rst concentrate on completing the present ones. A small suggestion - do not go too fast.CLARENCE LEWIS
RE: DUBAI COMMITTEE WILL SCRAP ‘UNVIABLE’ PROJECTSI personally believe that this step should have been taken a long time ago - before commencing on any project. Rera should have reviewed each proposal and then allowed the project to take off. It will take a long time for this company to get its confi dence back and I suggest that people should be paid back immediately for all those
man behind the world’s tallest success.JOEL
RE: PALISADES IS ‘GOING AHEAD’When will the development start? This is unacceptable. I have lodged a complaint with Rera.CHARLES A
WELL DONEThe Construction Week website is very informative. All relevant data is available for readers to view.RANA BABUR MANZOOR
projects which are not viable. It’s a very cumbersome process for investors to get back their hard earned money from the greedy developers and I request the government and Rera to intervene and give some confi dence back to the investors. GULAMABBAS KHALFAN
RE: PETER RIDDOCH ON THE RECORDLake View was handed over in 2008? That’s news to all owners in Lake View. The area variation law is entitled Article 12 of Law 13 of 2008. The clue is in the title - this law came out before handover and applies to our contract. Regardless of the law, Damac never provided any proof to customers; they just demanded the payment with threats of penalties if payment wasn’t made promptly. The fi nal straw is that even if you pay Damac all payments they still won’t give you your keys until you voluntarily sign a letter of discharge and adherence meaning you have no legal comeback at all.ANON
RE: SAUDI PLANS TO BUILD 1MN HOMESIf this article is right in saying that Saudi Arabia’s population is growing by 2.5% a year and 65% of families don’t have a home then why is Saudi only building one million homes? Surely the country will need a lot more than that? RICHARD WRIGHT
RE: KSA BENEFITS FROMRECESSIONWell it’s about time that we heard something posi-tive about the progress of the developing GCC countries. It isn’t all doom and gloom and as the article states – the downturn has created some signifi cant opportunities for the construction world including a drop in building material prices, and surplus capacities in equipment and human capital.
ROSANNE
The opinions expressed in this section are of particular individuals and are in no way a refl ection of the publisher’s views.
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FOREWORDYou know the feeling when you’ve taken a big bite out of your burger, and just then you’re asked a question? On behalf of the entire team here at the Construction Week towers, that’s how we’re feeling – frustrated. There’s so much happening in Saudi Arabia and we can’t convey all of it soon enough.
Last week, I only touched on the success of the Construction Week Saudi Arabia Conference, but in this issue you’ll see what I’d left out – enough to dedicate an entire edition to KSA by creating a Saudi Arabia Special fi lled with pertinent news, analyses and great decision making information from the Kingdom. In fact, we have so much news left over that we decided to create a special online section to include it all. Log into www.ConstructionWeekOnline.com/SaudiArabia.
As you’ll see in the following pages, our Saudi Arabia editor Benjamin Millington met up with many industry bigwigs in Riyadh and Jeddah, and at our conference, to get a feel of how things are on the ground there. And from what I hear, it looks like Saudi is on the brink of a new era.
With the Saudi government bending backwards to attract foreign investment, it would seem a little strange to not, at least, consider setting up in the Kingdom.
In an interview with the deputy minister of town planning, Dr Abdulrahman Al Shaikh, we learn that the Saudi government is working on reforming many investment and ownership laws that are now being seen as outdated – much to the joy of foreign, and quite a few Saudi, contractors and developers who have previously shied away from the Saudi market.
An analysis on whether Saudi Arabia is the place to be, also gives us an insight into the current atmosphere of change that exists in the country. With opportunities in education – construction of the Noura Bint Abdulrahman University for Women in Riyadh, tourism – 45.3 million tourists are expected to be visiting Saudi Arabia per year by 2020 with 50,000 hotel rooms scheduled to be constructed and the construction of six economic cities, work seems to be in abundance.
Saudi Arabia isn’t referred to as the “sleeping giant” for nothing. It’s amazing how accurate that phrase is because it insinuates an awakening. And it’s better to be prepared for when that sleeping giant begins coming round, which could be any time now.
SAUDI ARABIA. WOULD YOU?
WRITE TO THE EDITOR Please address your letters to: Construction Week, PO Box 500024, Dubai, UAE or email [email protected]. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEK.online.com and air your views on any one of a number of the latest articles.
“SAUDI ARABIA ISN’T REFERRED TO AS THE ‘SLEEPING GIANT’ FOR NOTHING”
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Registered at Dubai Media CityITP Business PublishingPO Box 500024, Dubai, United Arab EmiratesTEL +971 4 435 6000 FAX +971 4 435 6080Offices in Dubai & London
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11MAY 23–29, 2009 CONSTRUCTION WEEK
Saudi Arabia is looking to soften the rules that govern foreign ownership of land, a move that could lead to a fl ood of foreign investment in the Kingdom, Construction Week can reveal.
A relaxation of Dubai’s foreign land own-ership rules in 2002, is widely believed to have been one of the main reasons behind the emirate’s construction boom.
Speaking to CW, deputy minister for town planning Dr Abdulrahman Al Shaikh said, “GCC residents are free to purchase land in Saudi Arabia.”
“It is still not allowed for other foreigners, but these regulations are currently under study and I think things will change soon.”
Saudi Arabia has recently been looking at relaxing foreign investment laws including those governing business partnerships.
FRONT
GOV REFORMS TO ATTRACT FOREIGN INVESTMENTBy Benjamin Millington and Jamie Stewart
>Construction Week Saudi Arabia Conference news 12>Topical images with the latest news 14>Industry events on the horizon 15> Analysis: Is Saudi Arabia the place to be? 16> Face to face 18
“Previously no foreign investment was allowed unless [the investor] worked with a Saudi partner,” Al Shaikh said.
“Now any foreigner can come into the country and start working like any local company. The government is realising the benefi ts of this. They are changing the regu-lations step by step.”
Al Shaikh also conveyed the government’s willingness to welcome construction fi rms from across the GCC to Saudi Arabia.
“I encourage contractors, consultants and developers to come to Saudi Arabia and look for opportunities,” he said.
In line with Al Shaikh’s comments, a num-ber of regional fi rms have expressed a desire to move into the Saudi Arabia construction market, to offset the slowdown they have had in other parts of the Middle East.
A FURTHER SOFTENING OF LAWS GOVERNING FOREIGN INVESTMENT COULD OPEN THE GATEWAY INTO SAUDI ARABIA FOR GCC FIRMS.
MAG Group Properties CEO Mohammed Nimer said last week, “We are looking at the chances [in Saudi Arabia] and have started doing so very seriously.”
Nimer also revealed that the developer is looking at potential fi rms to partner with, should it decide to make the move.
“We are studying the partnership options,” he said. “The idea of having a partner is very valid. It is safer, and lessens the risk.”
Dubai-based Gulf Technical Construction Company (GTCC) has also expressed an interest in establishing itself in the Saudi Arabian market.
“We currently have projects in Dubai and Abu Dhabi and we are hoping to expand into the GCC, specifi cally into Saudi Ara-bia, very soon,” GTCC executive director Saleh Muradweij said.
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CONSTRUCTION WEEK MAY 23–29, 200912
SAUDI ARABIA CONFERENCE NEWS
Saudi Arabia has launched the Jeddah Strategic Plan, which maps out the city’s development over the next 20 years.
Governor of Makkah Prince Kha-lid Al Faisal bin Abdulaziz Al Saud inaugurated the plan last week. It has been in development for the past three years.
The plan aims to reduce the num-ber of slums in Jeddah, build more affordable housing and increase the density of the city, offering opportunities for developers in real estate.
The news was announced at the Construction Week Saudi Arabia Conference by Jeddah Development and Urban Regeneration Company strategic planning and management of land and property vice president Dr Abdulgader Amir.
“Real estate in Saudi Arabia is considered one of the biggest untapped resources in the region
JEDDAH STRATEGIC PLAN UNVEILEDBy Benjamin Millington
so far,” he said. “There’s a strong demand from the Sau-di population for residential development and there’s
strong support from the government for these projects.”
Jeddah is the second biggest city in Saudi Arabia and the gateway to the holy cities of Makkah and Madinah.
Urban sprawl is a major problem for the city, putting pressure on infrastructure, which in turn has led to pollution and other social issues, Amir said.
A shortage of property, especially afford-able housing, has forced people to live in unplanned settlements, or slums. Cur-rently there are 50 slums in the city, housing 1.2 million people.
The plan’s major projects include a new city centre, which covers 12 million m² on a vacant site next to old airport that will provide a “downtown and dense environment,” and the Jeddah Town Centre, announced last year, which covers 6 million m² and encompasses the historic Old City area and some waterfront.
THE JEDDAH STRATEGIC PLAN WILL GUIDE THE CITY’S DEVELOPMENT FOR 20 YEARS.
FOLKS IN QUOTES
Landscape Architects principal Geoff SandersonHow important is selecting the right sponsor when setting up in Saudi Arabia?It’s essential. You must fi nd a sponsor that is compatible with your business and highly regarded in the market. Those that are hasty to set up might make very expensive mistakes. I met with so many companies that were only half-interested and their agenda didn’t match ours. So we took our time and made the right decision. Our sponsor, the Abunayyan Group, has opened so many doors and we have picked up four sizable projects in the past three months.
Infrastructure investment company Awnas CEO Dr Abdulrahman AlangariWhat impact has the fi nancial crisis had on Saudi Arabia’s construction industry?The main concern is the fi nancing from banks. It’s causing a lot of problems for contractors and developers who want to go ahead with their plans, because the banks have limited their commitments. Even government projects have been affected and there’s no sign from the banks when this might ease.
Head of the founding group for the Saudi Green Building Council and architect Sultan AY FadenWhat is the timeline for the formation of the Saudi Green Building Council?We plan to make 2009 our founding year and we expect to fi nish our own version of Leed within two to three years. Meanwhile we are establishing strategic partnerships with government and semi-government organisations in order to implement the green initiatives into their regulations. Saudi Arabia works in zones and each authority has control on certain districts and cities, so it is easier for us to implement our green initiatives through broad government bodies, rather than dealing with all the municipalities and sub municipalities.
13MAY 23–29, 2009 CONSTRUCTION WEEK
GREEN BUILDING COUNCIL MAKING STRIDES
The Saudi Green Building Council is planning to be fully operational with an offi ce and staff members by July this year according to Sultan Faden, the head of the founding group.
The non-profi t organisation was approved by the government’s Presidency of Meteorol-ogy and Environment (PME) in January and is spending the fi rst six months of the year fundraising.
Speaking at the Construction Week Saudi Arabia Conference Faden said the group is currently forming strategic partnerships with various government and semi-government agencies to implement their green initiatives and regulations.
One of the initiatives is a “Saudi version” of the green building rating system, Leed, which should be fi nialised within the next two to three years, said Faden.
The group is also working towards “green-ing” the Kingdom’s building materials, in par-ticular it plans to encourage the Kingdom’s 350 ready mix plants to add volcanic ash to their concrete.
KSA FOCUS FOR JONES LANG LASALLE
Global real estate services fi rm Jones Lang LaSalle said 50% of all its construction activity underway in the Gulf region is coming out of Saudi Arabia.
“It’s more than Abu Dhabi and it’s more than Dubai which is quite a big change when com-pared to the previous years,” the fi rm’s head of Saudi operations John Davies told partici-pants at the Construction Week Saudi Arabia Conference.
“It’s also an indication that your business will soon start experiencing a similar pattern, if not already.”
Davies, who is based in Riyadh, outlined a number of key property trends in the Kingdom which included a focus on affordable hous-ing amid a growing population, the cooling of speculative investments and an increase in inter-national developers entering the market.
He said it had been a tough year for obtain-ing project fi nance, but there are indications that banks may start lending again with the average loan deposit limit recently decreasing from 90% to 80%.
NEWS IN NUMBERS
1 million new homes
will be needed in
Saudi Arabia over the next
5 years
Saudi Arabia’s population is
25 million
Samba inks
SAR2 billion
housing fi nance agreement with Saudi Electricity Company
SPOTTED
PHIL DALGLISH, DIRECTOR MIDDLE EAST, BURO HAPPOLD.
GEOFF SANDERSON,
PRINCIPAL, GREEN
CONCEPTS
JOHN HARRIS, HEAD OF OPERATIONS FOR JONES LANG LASALLE.
DR ABDUL-RAHMAN
ALANGARI, CEO, AWNAS
65%of families
don’t own a home in KSA
Population growth rate is
2.5%per year
MCDCnet profi ts rose from
US $50.7millionto $59.3million in
12 months
- a 16.8%increase
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
CONSTRUCTION WEEK MAY 23–29, 200914
ABOVE: Makkah Construction and Development Company’s (MCDC) year-on-year net profi ts rose 16.8% from US $50.7 million (SAR190 million) to $59.3 million over the past 12 months, the fi rm announced last week. MCDC was a founding member of the Jabal Omar Development Company, which cancelled its Western Gate Road (pictured) contract with Jadwa Investment three weeks ago.
RIGHT: Abu Dhabi based Al Maabar has offi cially launched the next phase of Bab Al Bahr, a joint-venture project with L’Agence pour le Développement de Bouregreg. The launch was attended by HH Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, and His Royal Highness Prince Moulay Rachid of Morocco.
FAR RIGHT: Al Fajer Properties has announced the completion of the superstructures for fi ve of its nine towers in Jumeirah Lakes Towers area in Dubai. Once complete, the Jumeirah Business Centre towers will add 186,000m² of offi ce space and an additional 8000m² of retail space to the community.
BELOW: Al Hanoo Holding chairman Sheikh Abdullah bin Fahid Al Shakrah reviewed his fi rm’s experience in developing the Al Nujoom Islands projects (pictured) last week at the Infrastructure Development Summit MEA in Dubai. Al Shakrah said that resuming development work on projects is essential for pushing the economy towards recovery; to avoid being caught in a vicious economic circle.
NEWS IN PICS
FRONT > For more pictures log on to www.ConstructionWEEKonline.com
15MAY 23–29, 2009 CONSTRUCTION WEEK
EVENTS
Event: Facilities Management Awards 2009Overview: The FM awards ceremony aims to help recognise and reward those who have made significant contributions to the industry’s
development. Organisations that have educated and excelled, plus individuals who have delivered above and beyond the call of duty will be among the winners.Date: 25 MayVenue: The Westin, DubaiPhone: +971 4 435 6133Email: [email protected]: www.constructionweekonline.com/fmwards
Event: Building Sustainability into the Middle EastOverview: Following up on from the success of the 2008 Conference in Dubai, Construction Week is hosting the second annual Building Sustainability event. The conference is set to be held along with Emirates Green Building Council.Date: 27 MayVenue: The Park Hyatt Dubai hotelPhone: + 971 4 4356125Email: [email protected]: www.itp.net/eventssustainability09
Event: Construction Week Qatar Briefi ngOverview: A timely update designed to off er delegates the relevant information needed to successfully do business in the country. Attendees will gain an update and forecast on the Qatar real estate market and hear discussions on investment opportunities in the hospitality sector. Other topics include accessing and funding for projects - an overwiew of banking in Qatar and creating architecture in line with national heritage.Date: 4 JuneVenue: Sheraton Hotel, doha, QatarPhone: +971 4 435 6125Email: [email protected]: www.itp.net/events/cwseasonpass
Event: Middle East Architect Awards Date: 30 SeptemberVenue: To be confi rmedPhone: +971 4 435 6133Email: [email protected]: www.constructionweekonline/meaa
Event: Construction Week Iraq Briefi ng 2009Overview: Entering this territory in the autumn of 2009, Construction Week will hold its fi rst conference on Iraq construction to explore the strategies for market entry and expansion in real estate development and infrastructure projects. If you are looking for large-scale and long-term business opportunities in Iraq, you will gain advantages by building relationships now.Date: 19-20 OctoberPhone: +971 4 435 6125Email: [email protected]: www.itp.net/events/cwseasonpass
Event: Construction Week Awards Date: 4 NovemberVenue: To be confi rmedPhone: +971 4 435 6133Email: [email protected]: www.constructionweekonline/cwawards
Event: MEP Awards Date: 9 DecemberVenue: To be confi rmedPhone: +971 4 435 6133Email: [email protected]: www.constructionweekonline/mepawards
Event: Saudi Aircon 2009Overview: International air conditioning, ventilation, heating and refrigeration show.Venue: Riyadh Exhibition CentreDate: 24-26 MayPhone: +966 1 454 1448Email: [email protected]: www.eventseye.com
Event: 5th Build Asia International Exhibition and Conference.Date: 1-3 August Venue: Karachi Expo Centre, Pakistan Email: [email protected]
Event: Inter-build JordanDate: 2-5 AugustVenue: Amman International Motor Show CenterWebsite: www.eventseye.com Event: HME 2009Date: 4-6 AugustVenue: Oman International Exhibition CentreWebsite: www.oite.com Event: Turkmen Construction - 2009 Date: 20-22 August Email: [email protected]
Event: Saudi Build Venue: Riyadh Exhibition CentreDate: 4-7 October Email: [email protected]: +966 1 454 1448
Event: CityScape DubaiOverview: International Property and development event.Venue: Dubai International Exhibition CentreDate: 5-8 OctoberPhone: +971 4 332 1000 Website: www.eventseye.com
Event: SME Expo and conference 2009Date: 27-29 October Venue: Dubai International Exhibition CentrePhone: + 971 433 21000Email: [email protected]
Event: Building and Construction ExhibitionDate: 21-27 November Venue: Kuwait International Fair Ground Website: www.kif.net
Event: The Big 5 Overview: Massive construction exhibition for the GCC and wider Middle East. Date: 23-26 NovemberVenue: Dubai International Convention and Exhibition CentreWebsite: www.the big5 exhibition.com
The 2009 Construction Week Qatar Briefi ng is a timely update designed to offer delegates the relevant information needed to successfully do business in the country. Attendees will gain an update and forecast on the Qatar real estate market and hear discussions on investment opportunities in the hospitality sector. Other topics include accessing funding for projects – an overview of banking in Qatar; opportunities in real estate, tourism and business park developments; identifying partners, agents and distributors; and creating architecture in line with national heritage. �
Event focus
CONSTRUCTION WEEK QATAR BRIEFING
DATE: 4 JUNEVENUE: TO BE CONFIRMEDPHONE: +971 4 435 6125EMAIL: [email protected]: WWW.ITP.NET/EVENTS/CWSEASONPASS
CONSTRUCTION WEEK MAY 23–29, 200916
Land of opportunityWITH A SERIES OF FIVE YEAR DEVELOPMENT PLANS FUELLED BY HUGE PETROCHEMICAL INVESTMENTS, IS THE TIME RIGHT FOR THE CONSTRUCTION INDUSTRY TO BEGIN FOCUSING ON SAUDI ARABIA?
By Jamie Stewart
DemographicsCityscape Saudi Arabia event director Deep Marwaha said last week that the market for residential development will design, plan and build more than a million homes over the next fi ve years across the country to meet the needs of its populace.
“With a population of 25 million people growing at 2.5% a year, Saudi Arabia is set to double its population in 28 years,” he said. “Forty per cent of Saudi nationals are under the age of 20 and 70% under 30, and 65% of families currently don’t own a home.”
This growing population is a product of the booming wealth of the country, which is fuelled by petrochemical exports. According to US state department Bureau of Public Affairs, oil accounts for “more than 90% of the country’s exports and nearly 75% of government revenues.” Further, the bureau states, “proven reserves are estimated to about one quarter of world reserves.” As a result of petrodollars and high per-capita
In the Kingdom of Saudi Arabia, it is no less about the “O” word today, than it has been since the discovery of its vast oil reserves 60 years ago – the “O” word being opportunity.
So in the midst of a worldwide recession, what is it about Saudi Arabia that allows opportunity to fl ourish despite the fi nancial gloom elsewhere?
Bahrain-based Arcapita investment direc-tor and Victory Heights general manager Yasser Abdulla is familiar with the concept of opportunity.
Through Arcapita he has embarked on a number of ventures across the GCC estab-lishing one-off JVs to develop specifi c real estate projects. Abdulla told Construction Week that Saudi Arabia is the place to be.
“We see much potential for growth in Saudi Arabia, where the demographic creates a good demand for real estate,” Abdulla said. “It’s a natural market that will be there for the long term.”
ANALYSIS
“IT’S A NATURAL MARKET THAT WILL BE THERE FOR THE LONG TERM”
GDP the population of Saudi Arabia began to boom in the 70s, which has resulted in today’s youthful demographic, most of whom will one day require a home, hence the con-struction potential.
EducationOpportunities also abound due to the developmental policies of the government of Saudi Arabia.
A series of fi ve year plans have been in place since 1970. The current plan, which covers 2005-2010, has a focus on economic diversifi cation, education and the inclusion of women in society.
An example of how such plans can lead to lucrative work for the construction industry is Noura Bint Abdu Rahman Univeristy for Women in Riyadh, the fi rst university in the country exclusively for women.
Work is split into three packages worth a combined total of US $11.5 billion (SAR43 billion). Two of these packages cover the buildings and associated works, while the third covers the infrastructure.
ARCAPITA INVESTMENT DIRECTOR AND VICTORY HEIGHTS GENERAL MANAGER YASSER ABDULLA.
THE US $50 BILLION KING ABDULLAH ECONOMIC CITY IS UNDER-CONSTRUCTION 100KM FROM JEDDAH.
17MAY 23–29, 2009 CONSTRUCTION WEEK
TourismThe 2005-2010 development plan also highlights tourism as a sector with the potential to further diversify the economy of the country.
Supreme Tourism Commission secretary general and Saudi Commission for Tourism and Antiquities (SCTA) president Prince Sultan bin Salman bin Abdulaziz Al Saud outlined the country’s tourism develop-ment plans in the build up to the Arabian Travel Market earlier this month.
The Prince said that 45.3 million tour-ists will be visiting Saudi Arabia annually by 2020 with a combined expenditure of $21.4 billion. In order to accommodate such numbers, plans have already been enacted to construct 50,000 hotel rooms and 74,000 housing units.
The SCTA signed 17 new contracts worth $5.3 million in the fi rst quarter of 2009 alone with Saudi Arabian fi rms to undertake works on a number of tourism projects.
BudgetAs a mark of the government’s commitment to its developmental plans, $128 billion of expenditure was allocated in Saudi Arabia’s 2009 budget, including $9.3 billion on water, agriculture and infrastructure projects.
This commitment came despite a predicted budgetary defi cit of $4.5 billion, which is further proof of the willingness of the gov-ernment to press on with its construction
income that lies in the generous helping of natural resources beneath the desert sands. Growth is happening right now.
“We have identifi ed three areas where we are going to be based – Jeddah, Riyadh and Al Khobar,” RMD Kwikform’s Dewar explains. “We have secured three out of fi ve intended properties, and we have staff in place.”
The fi rm is clearly gearing up for an increase in business in the Saudi Arabian market in the near future. A concrete sign of growth.
Across the country, multi-billion dollar projects such as Jubail Two, the new indus-trial zone 8km west of the original Jubail One, will keep extracting wealth from the ground, which will then be channelled into housing, education and tourism projects, such as the $50 billion King Abdullah Eco-nomic City.
All of this paves the way for fresh con-struction contracts in a variety of fi elds, from affordable housing to petrochemical mega-projects.
Saudi Arabia is fast becoming the GCC’s modern day land of opportunity. �
plans. In addition, Saudi Arabia was rated top of all GCC countries in the Doing Busi-ness 2009 report released by the World Bank and the International Finance Cor-poration. The ranking is an indication of the pace of reform in each country listed. Saudi Arabia is reforming fast, and doing business is becoming easier.
RMD Kwikform director James Dewar, who conducts business in all GCC mar-kets, said the ease of doing business has improved “very much” in recent years due to government reform.
“The opening of the Saudi Arabian General Investment Authority [in 2000], which has the sole purpose of making things more user friendly, certainly made the market more attractive,” he said.
OutlookConstruction in Saudi Arabia is driven by the government’s plans to diversify the country’s economy – the very same driving force that has been behind Dubai’s decade- long construction boom.
But in Saudi Arabia, the boom is fuelled by an economic safety net – the guaranteed
RMD KWIKFORM DIRECTOR JAMES DEWAR.
SAUDI ARABIA BUDGET EXPENDITURE AND REVENUE SINCE 2000 (JADWA INVESTMENT).
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
CONSTRUCTION WEEK MAY 23–29, 200918
FRONT
Many aspects of the current system are not fi t for the
stage of development that the country is in. It causes
great injustice to imported labour, and it gives a deceiving
element of competition to many businesses and
industries. Also, it stands in the way of reforming the local
labour market and transforming it to global standards. It
is an obstacle in the face of true Saudisation.
Initially, it will increase the cost of labour. But once the
local economy adjusts to that, the effects will be positive.
The labour market will enjoy the benefi t of a standard
covering the quality and reliability of supply. The cost of
labour in general will be normalised refl ecting levels that
will allow fair competition. Finally, it will help the country
to eliminate a great source of injustice and unfairness.
It would enhance the moral standard governing
relationships between employers and employees, offering
the worker more rights. At the same time, it would offer
employers a higher level of quality and selectivity of
the work force. Additionally, such a shift would bring a
missing balance to the labour market. The current cost of
labour is cheap. This is the main obstacle facing the true
and effective Saudisation of many work force layers.
Gulf States in general are slow to adopt changes. Plus,
this issue has a substantial social impact, as it touches
an area where many nationals are benefi ting, either
directly through positions such as drivers, or indirectly
through the thousands of small to medium business
establishments that use the private sponsorship system
to maintain their labour supplies. It should not be long
before all GCC states consider such a shift.
The current Saudi Arabian sponsorship system is to
some extent an outdated and bureaucratic process. It
ties down the employee and restricts his movements,
and also causes unnecessary work for the employee in
coping with issues from arranging visas to approving a
driving license. The process is particularly problematic for
unskilled workers who fi nd they have little in the way of
rights without the employer’s input and decision.
Overall the benefi t would be positive. However, for many
of the large, world renowned western companies with
trained HR staff who routinely handle employees at all
levels in a considered and professional manner, this could
be a negative move. It could effectively take much of the
HR decision-making out of their hands and give it to a less
experienced agency who do not understand the particular
needs and processes of the company.
Overall, the shift to sponsorship by recruitment agencies
would benefi t the Saudi Arabian labour market in terms of
it being seen as more transparent and overtly responsive
to the needs of the employee. This is particularly true with
respect to the lower-skilled employees and those working
for individuals who are often at the mercy of an employer
who may not consider, or even be aware, of individual
infraction of the law.
Due to the current economic climate, some countries
appear to be more concerned with fi nding ways to ensure
employment for nationals, and to ensure the movement
of Arab nationals who are seeking work from one state to
another. Plus they appear to be trying to keep existing,
but unemployed, expatriate workers in the country.
Modifi cation of the sponsorship system is perhaps seen
as a subsequent issue to be discussed.
WHAT IS YOUR OPINION ON THE CURRENT SYSTEM OF PRIVATE SPONSORSHIP?
HOW WOULD THE PROPOSED SHIFT TO SPONSORSHIP VIA RECRUITMENT AGENCIES AFFECT SAUDI ARABIAN BUSINESSES?
HOW WOULD THE PROPOSED SHIFT AFFECT THE SAUDI ARABIAN LABOUR MARKET?
WHY HAVE SOME GULF COUNTRIES REFUSED TO CONSIDER IMPLEMENTING THE SAME POLICY?
ESSAM KALTHOUMAl Shamiyah Urban Development Company CEO
DR ABDULQADER AMIRVP, strategic planning, Jeddah Development Company
Bahrain is to move to a system of sponsorship for migrant workers through recruitment agencies and Saudi Arabia has signaled its intention to follow suit. Our industry experts discuss the implications.
FACE-TO-FACE
CONSTRUCTION WEEK MAY 23–29, 200920
EXCLUSIVE INTERVIEWDR ABDULRAHMAN AL SHAIKH
FAST FACTSDr Abdulrahman Al Shaikh:
• Is married with one son and three
daughters
• Enjoys walking, jogging, swimming
and table tennis
• Loves watching local and international
football
• Rates Dubai, Switzerland, Austria
and Australia as his favourite holiday
destinations
• Says his job gives him joy because
he’s contributing to the long term
success of the Kingdom
What is KSA’s Spatial Strategy?The Kingdom is very big, about eight times the size of the UK – it’s almost like a continent. With this vast area and a rapidly increasing population a national spatial strategy is essential or you cannot make all the right strategic decisions to control developments, the population and commercial activities, or direct them to the right places. So this national strategic plan was approved by royal decree about 15 years ago to create balanced development between regions, and within regions. It suggests which cities should be developed fi rst and which resources devoted where.
And what is the result of this strategy?Based on the study, which we spent about ten years doing, the Kingdom was divided into 13 provinces, each with its own capital city and surrounding secondary cities. In each province we encourage industries that will utilise the local characteristics or resources of the area, some areas we promote agriculture, some mining industries and others petrochemicals industries. Following on from that we encourage establishing related downstream industries to allow the most effi cient use of our resources. This is the way it works, but the implementation takes a very long time and we are facing many challenges.
What is the biggest challenge?The increase in population is a major challenge because we are now almost 26 million people with a population growth of something like 8% per annum. This creates uncontrolled expansions to cities and rapid growth of urban centres.
Do the six economic cities fi t into the spatial plan?The economic cities came later and we
had to revise the spatial plan to fi t them in. One important area of study was the effect these huge economic cities may have on neighbouring areas. We didn’t want to create a vacuum with the new cities pulling everybody out of the market. This was the main concern of the government and so based on our studies we suggested where the economic cities could be integrated. So there’ll be no gaps or huge differences between them, in fact they’ll help existing cities create more opportunities.
Are these economic cities needed?Yes, these came with a strategic objective. The economic cities aim to create economic diversifi cation and attract foreign investors and experts. We think it will provide valuable opportunities for securing a variety of modern, technical and commercial industries and help us move away from being an oil based economy. King Abdullah Economic City (KAEC) is already attracting billions of dollars from outside the Kingdom.
Will all six economic cities be built?Yes. They have been well planned by our foreign investment agencies, there are comprehensive feasibility studies, they have been approved by the higher authorities and the major component of its success is interest from foreign investors. Each city has its own unique character based on local resources. For example, in Jizan they are using aluminium industries as the core and in Hail they are using phosphate and other mines to form the core.
Do Jubail and Yanbu industrial cities set a good example for how a city can be built around industry?Absolutely. Jubail and Yanbu are very
Man with a planSAUDI ARABIA’S DEPUTY MINISTER FOR TOWN PLANNING DR ABDULRAHMAN AL SHAIKH DISCUSSES THE KINGDOM’S NATIONAL SPATIAL STRATEGY, THE ECONOMIC CITIES AND OFFERS ADVICE TO FOREIGN COMPANIES LOOKING TO ENTER THE MARKET
By Benjamin Millington, photos by Rajesh Raghav
successful stories. When they were started in the 1980s everybody was saying ‘these people are crazy, don’t bother doing it’ – everybody was gambling about its failure and now everybody is talking about its success. It proved to be the right decision at the right time. I know there are some people who have their doubts about the success of the economic cities, but this is the nature of people. I believe they will prevail, because the Kingdom’s economy and resources are sound and if it is the will of the government to support it, then it will go on. It is defi nitely benefi ting from the experience of Jubail and Yanbu, but rather than being based around petrochemicals, each city has its own own core industry.
21MAY 23–29, 2009 CONSTRUCTION WEEK
Is there more risk associated with these industries than petrochemicals?As with any project I think there is an element of risk. But when you study things well and believe it works then you should go ahead. This hasn’t been done in a day or two, it was carefully planned and the response from investors is very encouraging. Billions of dollars have been invested in these cities and I think it will prove to be a correct decision.
What are the advantages of starting a city from scratch such as KAEC?It gives you the chance to put in the right infrastructure and plan correctly. You can control future expansion and provide services from the start, utilising the resources that are available to that area in the right way.
What can go wrong when starting a new city?It’s not that it goes wrong, but when you start something from scratch you need to convince people to come to it and make them like it. It takes effort and time to get them used to it and to establish their own community and society. If it is close to a major city and can easily benefi t
from its services, then I think it will go ahead without major problems.
How do you ensure that people come?This is the challenge for all planners – how to make the city attractive to live in. A city is not just boxes and streets and offi ces, it is the place where you spend most of your life and must include attractive recreational areas. This is something that we are enforcing for all new plans coming from the private sector. We make sure they are providing green areas, entertainment areas, places
for people to meet socially and places for sport. In the past, people in Saudi Arabia haven’t liked parks, playgrounds, cafes or restaurants in their areas, but it is now becoming more common. The whole philosophy is changing here with people spending more time outside their homes and developers are starting to see this.
How is the government making it easier for foreign investors?We are trying to ease the regulations for foreigners now and I can see a number of huge projects coming to Riyadh which have several foreign partners. Previously no foreign investment was allowed unless they had a Saudi Arabian partner. Now any foreigner can come and start working like any local company. The government is realising the benefi ts of this and changing regulations. Another thing is the softening of land ownership regulations. It was recently announced that GCC residents are free to purchase land here. It is still not allowed for other foreigners, but these rules are currently under study and changes are expected.
Should foreign companies come here?The Saudi market is very attractive. It’s the largest and strongest market in the region for real estate development. I encourage contractors, consultants and developers to come to Saudi Arabia and look for opportunities. Even with the fi nancial crisis the Kingdom is still in a better position than most countries due to our good fi nancial system. The budget that was announced last year was the biggest in the Kingdom’s history so there are still very good reasons for construction companies to come here.
What would you say to foreign companies looking to move here?We are encouraging investors and businessmen to get involved in complete projects or communities, not just land use. It is something that is gaining momentum and something that we will ease the regulations on. If an investor comes to us and says they want to make a complete project then we encourage them and give them a chance to do it. The atmosphere is very good for developers to come and look for such kinds of opportunities here. There is ground for these projects in Saudi Arabia and the buying power is strong in the Kingdom. Statistically many of the buyers in Dubai are Saudi; if developers were to give them something in their own country then they will respond.
POTENTIAL NATIONAL GROWTH CENTRES THAT THE GOVERNMENT OF SAUDI ARABIA IS FOCUSING ON.
“WE ARE TRYING TO EASE THE REGULATIONS FOR FOREIGNERS [AND] NOW ANY FOREIGNER CAN
COME AND START WORKING LIKE ANY LOCAL COMPANY.”
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
CONSTRUCTION WEEK MAY 23–29, 200922
Could Sharjah be the best place from where to conduct your business in the Middle East? If news from the Special Economic Zones (SEZ) Forum held in the Emirate in mid-May is any indication of times ahead, then the answer may be yes.
Incentives put in place by the government ensured that foreign trade rose to US $17.2 billion (AED63 billion) in 2008, according to reports from the Forum. In addition, Ali Salem Al Mahmoud, director general of the Economic Develop-ment Department in Sharjah reported that the industry sector contribution in the GDP increased from $1.5 billion in 2004 to $3.3 billion in 2007. The cost of setting up a business in Sharjah is less than in other Emirates and the focus on industrialisation has turned it into a commercial centre with an annual growth rate of 12%. The Emirate cur-rently accounts for more than 40% of all industrial activity in the UAE.
Among the major contributors to this success are the Emirate’s free zones, which provide the base for many of the foreign fi rms that wish to invest and operate in the region. A concept introduced by the UAE government to enable foreign investment without ties to local fi rms, the free zones are play-ing a vital part in the growth of the economy. The construction industry is benefi ting from this in two ways: the ability to set up in the UAE without altering their global company status and operational methods; and secondly, the ease with which foreign fi rms can operate in the free zones has meant a wider choice of international standard services and products are readily avail-able in the local market.
Two zones currently operate in Sharjah: Al Hamriya Free Zone and the Sharjah International Airport Free Zone (Saif). Both of which have reported large growth over the past few years, with more expected. Reports from the SEZ Forum indicate a rise in industrial facilities within the zones from 180 in April 2001 to more than 2000 in mid-2008; investments rose from $500 mil-lion to $2 billion during the same period.
And opportunities are set to grow further as it was announced at the forum that in order to target further potential investors, Sharjah is planning to set up seven areas – including Construction World - within Saif and Al Hamriyah specifi cally for small and
I N T H E ZO N ECONSTRUCTION WEEK TAKES A CLOSER LOOK AT SHARJAH’S FREE ZONES: WHAT ARE THE BENEFITS OF OPERATING IN THESE AREAS AND HOW DO CONSTRUCTION PROJECTS GAIN FROM THEIR EXISTENCE?
By Alison Luke
medium enterprises (SMEs). So it seems that whether a fi rm is seeking to expand operations within the region or simply looking for more suppliers to meet the demands of project schedules and budgets, the continued success of the free zones is set to play a large part in the future of the construction industry.
AL HAMRIYAH FREE ZONEEstablished in 1995, Al Hamriyah Free Zone began as an area of 15 million m2 and has since grown to more than 22 million m2. Despite the current economic downturn, more than 100 trade licences were issued monthly in Q1 of 2009, which shows a reasonably sustained level of growth compared to 2008; an average of 125 licences were issued monthly in the 2008 period.
The zone includes industrial and com-mercial facilities plus a 14m-deep water port and adjacent 7m-deep inner harbour, with scope for further expansion. It was the fi rst zone in the world to win ISO 14001 certifi cation for environmental safety and has since been awarded ISO 9002 status for quality.
Most activities are permitted in the Zone as long as they are environmentally friendly and meet local regulations.
Firms can lease pre-built warehouses, factories and offi ces or even lease industrial plots of land on which they can build tai-lor-made facilities. Staff accommodation is also available within Al Hamriyah.
Plans for the future development of prime property within the zone include the construction of industrial plots that are sized in multiples of 5,000m2. Each plot can be developed by inves-
WHAT IS A FREE ZONE?
Free zones are trading areas that enable foreign investors to operate
within a country while maintaining their international status and
working procedures. They remove the need for the involvement of
local investors in their fi rms and ensure that 100% of profi ts are
maintained within the original fi rm. With benefi ts including tax-free
trading, they are intended to encourage the investment of foreign
fi rms within the region and increase the overall economic growth.
THE FOCUS ON INDUSTRIALISATION HAS TURNED SHARJAH INTO A
COMMERCIAL CENTRE WITH AN ANNUAL GROWTH RATE OF 12%
23MAY 23–29, 2009 CONSTRUCTION WEEK
tors to meet their needs and up to 60% of the leased land can be developed. Leases are provided on the basis of a minimum fi ve year term, with a fi xed rate for this period.
The maximum initial lease term is 25 years, although this can be renewed for a further 25 years.
SAIF ZONEThe Sharjah Airport International Free Zone (Saif Zone) was set up in 1995 and now services more than 4150 companies from 91 countries. It covers an area of around 10km2 and a wide range of fi rms operate from the Zone, including manufacturers, consultants and contractors. Located adjacent to Sharjah International Airport, the Zone offers facilities including fully-furnished offi ces; 125m2,
ADJACENT TO SHARJAH AIRPORT INTERNATIONAL AIRPORT, SAIF ZONE THAT WAS SET UP IN 1995, OFFERS WAREHOUSES SPANNING AN AREA OF 125M2 TO 600M2.
SAIF ZONE NOW SERVICES AROUND 4150 COMPANIES FROM 91 COUNTRIES.
LICENSE TYPESFour types of license are available for fi rms operating within the zone:• Industrial — which allows the import of raw materials intended
to manufacture, process or assemble a specifi ed product;• Commercial — which allows the holder to import, export,
sell, distribute and store specifi ed items;• Service — which allows the fi rm to carry out specifi ed ser-
vices solely within the free zone;• National Industrial — which gives duty exemption on prod-
ucts imported into the AGCC States and provides the license holder with the same status as local or AGCC companies inside the UAE.
CONSTRUCTION WEEK MAY 23–29, 200924
250m2, 400m2 and 600m2 warehouses and staff accommodation. In addition, the freezone can also provide temporary storage facilities for its clients.
Legal services, international couriers, traffi c and licensing offi ces, workshops, access to 50 international banks, low-cost energy and labour, budget consultancy services and computer training are also offered. Processing of all documentation such as trade licenses and visas can be carried out on site, often within 24 hours if the required paperwork is provided.
Again, the number of companies operating within Saif Zone is continuing to increase despite the current economic climate, although at a slower rate than previously. To date no construction industry-related fi rms have closed within the Zone, with most fi nancial issues being restricted to the real estate sector fi rms.
FREE ZONE COMPANIES
CLIPSAL MIDDLE EASTOperating in Saif Zone, Clipsal Middle East
is the regional operation of the Australian
electrical accessories fi rm. The fi rm
offers products for industrial, commercial
and domestic applications, with the Saif
Zone head offi ce handling marketing and
technical support of 31 countries in the
Middle East, including GCC, Levant, Africa
and part of the Mediterranean.
The fi rm houses and distributes more
than 45,000 different products and has
established different divisions including
wiring accessories; industrial products,
lighting; switchgear; energy and lighting
management; and air infl ation technology.
http://clipsalmef.arabic-products.com
ONYX BUILDING SYSTEMS FZC Based in Saif Zone, Onyx Building Systems
was formed as a specialised civil contracting
company for the industrial sector. Intended
to respond quickly to market demands
it has been involved in several major
projects. The Onyx Group also includes a
manufacturing capability for aluminium
and steel products including profi led
sheets, composite panels and purlins. Its
Saif Zone plant offering the preparation of
detailed fabrication designs using AutoCAD
Detailing Software in addition to traditional
draughting techniques to design the
required products prior to manufacture.
www.onyxfzc.com
COMBISAFE GULF FZE UK-based fi rm Combisafe is one of Europe’s
leading suppliers of fall-safety systems. The
fi rm has more than 20 years’ experience in
providing total solutions for fall protection
and can design and supply systemised safety
solutions. Operating from Saif Zone, the fi rm’s
product lines include the net barrier system,
a fl exible edge protection solution for roof
construction. It has recently provided more
than 850 steel mesh barriers, safety posts
and attachments to the Ferrari Theme Park
project on Yas Island, Abu Dhabi.
www.combisafe.co.uk
There are many fi rms operating within the Sharjah free zones that offer products
and services for use in the construction industry, including the following:
OPERATING WITHIN SAIFTo operate from within the Saif Zone, a company has to be
incorporated. The legal status of the companies in the Zone are
classifi ed as follows:
• Company branch; two options are available: branch of a foreign
company or of a local company.
• Free zone company (FZC): two or more can establish a FZC with
a minimum capital of AED150,000. Normally a maximum of
fi ve shareholders is allowed; this can be increased to seven with
approval from the Saif-Zone management.
• Free Zone Establishment (FZE): an individual can establish a FZE
with a minimum in Saif-Zone, therefore there is only one owner
(shareholder), with a minimum capital of AED150,000.
Three main categories of trade licence are offered: industrial, which applies to manufacturing fi rms; commercial, which applies to those trading goods; and service.
There are several sub-divisions within these categories, for example, under a commercial licence, fi rms can buy and sell three similar product lines, whereas in order to buy and sell an
New ½ horizontal ad size: 195x128mm
AN ARTIST’S RENDITION OF SAUDI ARABIA’S KING ABDULLAH ECONOMIC CITY.
unrestricted number of products a general trading licence will be required.
Firms that gain a licence to operate within Saif Zone are guar-anteed their premises for 25 years. As part of the contract, for the fi rst fi ve years there is no rental increase; the overall rent will rise by a maximum of 15% over the 25-year period, giving fi rms a fi nancial advantage over those operating outside the freezone. New leases will be subject to new pricing structures.
In general fi ve staff visas are provided for a rented offi ce space; the number provided to fi rms operating in areas such as ware-houses is dependent on individual needs. �
THE BENEFITS OF FREE ZONES• 100% company ownership (ie no need for local partnership)
• 100% exemption from income and corporate taxes
• 100% repatriation of capital and profi ts
• Fast issuing of trade license, often within 24 hours
• Exemption from commercial levies
• Locations are adjacent to bulk trading and transit areas such as
airports or sea ports
• Range of accommodation options offered on a lease basis
• Simplifi ed sponsorship and visa process for staff
www.arup.com
We shape a better worldDesign is at the heart of what we do, if you can imagine buildings like these you are already thinking like Arup.
B u i l d i n g s • C o n s u l t i n g • I n f r a s t r u c t u r e
WS ATKINS & PARTNERS OVERSEASAtkins is one of the world’s leading
engineering and design consultancies.
It is the largest engineering consultancy
in the UK, the largest multi-disciplinary
consultancy in Europe and the
world’s eighth largest design fi rm. Based
in Saif Zone, the fi rm is involved in the
planning, design and enabling of complex
capital projects throughout the Middle East.
It has several specialist divisions, including
engineering consultancies. The fi rm
currently employs around 850 staff and is a
member of Fidic and a corporate member
of Transparency International. Its disciplines
include structural and building services,
civil and environmental, plus the more
specialised areas of high-rise, intelligent
building design and fi re engineering. Its
project portfolio includes the Dubai World
Trade Centre development and Mirdif
Shopping Mall, Dubai.
www.wspgroup.ae
building design; building surveying; cost
and project management; and development
infrastructure. It has undertaken numerous
high-profi le projects in the region including
the Bahrain World Trade Centre, Dubai Metro
and the Burj Al Arab.
www.atkinsglobal.com
WSP MIDDLE EASTWith offi ces in Dubai, Abu Dhabi and Sharjah’s
Saif Zone, WSP Middle East is one of the
region’s fastest growing, multi-disciplinary
SAUDI ARABIA IS WORKING ON ESTABLISHING SIX ECONOMIC CITIES TO PROMOTE FOREIGN INVESTMENT.
PLANNED SAUDI ARABIA FREE ZONES
• King Abdullah Economic City
• Eastern Economic City
• Hail Economic City
• Talbuk Economic City
• Madinah Economic City
• Rabigh Economic City
• Jizan Economic City
It has also been reported that Al
Abbassi Island, which is close to the
Yanbu port, will be turned into a free
zone, and the Yanbu Chamber of
Commerce and Industry has appointed
a consulting company to provide a
feasibility study for the island.
M.S. AL-SUWAIDI GROUPwww.suwaidi.com
M.S. AL-SUWAIDI GROUP is one of the leading diversi� ed Groups in Kingdom of Saudi Arabia with a number of Strategic Business Units (SBU) in its fold, Currently looking to recruit high caliber professionals for the following positions for its � ag ship Industrial Project Services company (O&M, Construction, Scaffolding,
Construction Equipment) based in Jubail, KSA. www.suwaidi-industrial.com
��General Manager��Construction Division Manager��O & M Division Manager
��Project Control Department Manager��Marketing Manager��Head – QA / QC / Project QA/QC
Applicant should have at least 15-20 years of experience of which 5 years should have been similar position in large Construction / Oil & Gas, Petrochemicals/EPC /LSTK Projects. Bachelor Degree in Engineering with MBA
is Preferable. Experience in Middle East / KSA preferred.
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29MAY 23–29, 2009 CONSTRUCTION WEEK
ABDULRAHMAN AL SHAIKHRole: Deputy Minister for town planning
Company: Ministry for Municipalities and Rural AffairsPlace: Riyadh
Al Shaikh graduated as a civil engineer from King Saud University in Riyadh before undertaking his masters in engi-neering at Stanford University in Cali-fornia, US, and his PhD from the Imperi-al College of Science in London. Moving back to Saudi Arabia, Al Shaikh became a lecturer at King Saud University where he taught for 11 years and became the
ABDULGADER AMIRRole: Vice President – strategic planning Company: Jeddah Development
and Urban Regeneration CompanyPlace: Jeddah
Amir is currently the vice president for the Jeddah Development Company.
He assumed offi ce in April 2007 as the vice mayor for Urban Planning for the Municipality of Jeddah, before which, he worked as its chief planner.
Amir also taught at King Fahd Univer-sity of Petroleum and Minerals in Dhah-ran, KSA, for over 10 years where he
IF YOU ARE LOOKING TO SET UP SHOP IN SAUDI ARABIA, ARE ALREADY PRESENT THERE OR ARE SIMPLY LOOKING TO ADD TO YOUR CONTACTS BOOK, CONSTRUCTION WEEK SUGGESTS 10 INDUSTRY BOSSES YOU MAY WANT TO MEET UP WITH, FOR A COFFEE OR TWO
By Conrad Egbert and Benjamin Millington
10 PEOPLETO KNOW IN SAUDI ARABIA
headed two major departments – the city planning department and the Architec-ture department.
Last week, he revealed a 20 year strategic plan for Jeddah.
“We have been given a unique opportunity to invest on behalf of the government in rebuilding the city of Jeddah and increas-ing the standard of living for its residents. In doing so there will be many opportunities for devel-opers, both Saudi and international, to under-take projects as part of the strategic plan.”
chairman of the civil engineering department. Following this he joined the Ministry for Municipalities and Rural Affairs as the deputy mayor of Riyadh, a post which he occupied for six years. He then moved into his current role as deputy minister for town plan-ning, a position he has occupied for the last four years.
“The atmosphere is very good for developers to come and look for such kind of opportunities here. There is ground for these projects in Saudi Ara-bia and the buying power is strong in the Kingdom. Statistically many of the buyers in Dubai are Saudi; if develop-ers were to give them something in their own country then they will respond.”
CONSTRUCTION WEEK MAY 23–29, 200930
PRINCE ALWALEED BIN TALAL AL SAUD
Role: ChairmanCompany: Kingdom Holding Company (KHC)Place: Riyadh
Prince Alwaleed formed the Kingdom Holding Company in 1980, and today the company is one of the world’s larg-
est and most diversifi ed private invest-ment companies, with holdings in a large number of Middle Eastern and interna-tional companies.
KHC’s domestic and international portfolio includes investments in a range of sectors, from iconic real estate land-marks and world-famous luxury hotels, to banking, media and information tech-nology, retail business and healthcare, entertainment and tourism.
The Prince’s real estate is valued at around US $3.2 billion.
ALAA ABDULLAH SAEEDCompany: Emaar Middle East Role: CEOPlace: Jeddah
Emaar Middle East is a joint venture between Dubai-based Emaar Properties and Saudi Arabia-based real estate company Al Oula Development.
The company currently has two main projects under construc-tion, the US $1.6 billion (SAR6 billion) Jeddah Gate project and the $1.2 billion Al Khobar Lakes project.
“For our line of business Saudi Arabia is better shielded from the economic downturn. The population growth is also much stron-ger than in other areas of the world. If you look at the potential growth of demand in Saudi Arabia, it’s very attractive. Also, fi ve years ago the market was really fragmented with the main players trading in land, now they are coming in and providing full turnkey solutions, which takes the market to a whole different level and the consumers are eating this up. At the same time the progres-sive improvement of the government in freeing up and assisting in the things that we need have given us a boost in penetrating this market in such a short period of time. The private sector is always pushing for more but so far the government has accommodated a lot of the issues that we want. It’s not easy, but it’s positive.”
ESSAM AHMED KALTHOUMRole: CEO Company: Al Shamiyah Urban
Development CompanyPlace: Jeddah
Kalthoum graduated from King Fahad University of Petroleum and Miner-als in Dhahran, Saudi Arabia and has
more than 14 years experience in senior executive roles, and 13 years in entry and mid-level management.
He has worked in both the private and semi-government sectors with roles at Samama O&M Group, Al Saif Investment Group, Crystal Chemical Company and as deputy director general of the Royal Commission for the Yanbu Project. As CEO of the Al Shamiyah Urban Develop-ment Company he is currently over-seeing the development phase of two
multi-billion dollar projects in Makkah, the Haram Main Access project and the North Haram project.
“These are huge projects, over the last seven years we’ve spent around US $53.4 million (SAR200 million) on design alone. Both proj-ects are expected to be built over the next 15 to 20 years.”
31MAY 23–29, 2009 CONSTRUCTION WEEK
MOHAMAD AL NAGADIRole: President Company: Saudi Building Code
National CommitteePlace: Riyadh
Al Nagadi is also a member of the Kingdom’s Shura Council. He obtained a Bachelor in Structural Engineering studying between King Saud University and Dayton Ohio University. He then spent time working with the Ministry of Public Works and Housing before mov-ing to the Ministry of Municipality and Rural Affairs where he held the posi-
tion of deputy minister for planning and programs. “The world is going through a dark economic tunnel but the atmo-sphere of the construction industry in Saudi is booming.”
GEORGE DINICRole: Program ManagerCompany: Saudi Arabian Bec-tel Company (Sabco)
Place: Jubail
Dinic obtained his PhD from the Impe-rial College of Science in London and worked in various senior roles in the industry. He is employed by Sabco as program manager for the Royal Commis-
sion’s Jubail Industrial City. The 2009 budget allocated for Jubail’s expansion is US $880 million (SAR3.3 billion); a 35% to 40% increase from the previous year.
“The Royal Commission and Sabco would have about 50 active contracts in construction at any point in time.That is a fairly demanding challenge because it’s really like closing a contract a week. They can go from small contracts such as $2.7 million right up to$133 million depending on the type of contract.”
FARID CHAKER
Role: Assistant General Manager Company: Saudi OgerPlace: Riyadh
Chaker is responsible for all construction activities of Saudi Oger. He graduated from Ecole Supérieure d’Ingénieurs De Marseille in France with a Civil Engineering degree. Chaker is involved in several turn key projects in Saudi Arabia including
The Pilgrims Accommodation, The National Museum, the construction of King Abdullah University of Science & Technology, Princess Noura Bint Abdulrahman University for Women and the King Abdullah Economic city and many residential and offi ces projects.
SULTAN AY FADENRole: FounderCompany: Saudi Green Build-
ing CouncilPlace: Jeddah
Faden is an architect and head of the founding group for the Saudi Green Building Council. He obtained a Bach-elor of architecture from King Fahd University of Petroleum and Minerals in
Dhahran. He also has a diploma in archi-tecture and design from the Architecture Association in London. He has a total of seven years experience in three differ-ent consulting fi rms – Zuhair Fayed, Beeh Group and Arch-centre. In 2007 he began the process of forming the Saudi Green Building Council, which is expected to be fully operational by July.“The world has gone through a green awakening and Saudi Arabia has a chance to have a big impact. We already have many companies willing to join us.”
MOHAMMED A HAMMADRole: Manager – central and western region projects
Company: Saudi Aramco Place: Dhahran
Hammad also holds the position of president of the Project Management Institute (PMI) Arabia chapter.
He obtained a Bachelor of Science and Civil Engineering from Cairo University in Egypt before joining Saudi Aramco. He has more than 25 years project management experience with Saudi Aramco and headed up multi-billion dollar projects such as the Shaybah oil facility, the Hawiyah gas plant and the Hawiyah NGL plant.
“Look at all the economic cities that are starting up across the country. Every year we see the government invest in construction programs.”
People in this feature have been listed alphabetically and are in no particular order of preference.
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
CONSTRUCTION WEEK MAY 23–29, 200932
There must be no other city in the world that struggles with out-of-control urban sprawl and yet has a 12km2 vacant lot in the city centre. But such is
the case with Jeddah. Since the opening of Jeddah’s King Abdulaziz International Airport to the north of the city in 1981, the site of the old airport in the heart of Jeddah has remained undeveloped.
Reasons for this are varied and not exactly clear, but what is clear is that the site pres-ents a unique opportunity to build a new city centre, without the hassles of an exist-ing urban environment.
The developer to fi rst recognise this poten-tial was Emaar Middle East, a joint venture company between Dubai’s Emaar Properties (61%) and Saudi Arabia’s Al Oula Develop-ment (39%). In late 2004, Emaar made a proposal to the Jeddah Municipality and subsequently began work on a master plan for the site in 2005.
“Based on this vision the municipality was convinced that they had a chance to do something, and since the government owns 55% of the land, they chose to go forward with investing and upgrading the area,” says Emaar’s director of sales and market-ing Akram Omar.
Taking the reins of the project, the munici-pality engaged international consultants HOK to work on a new master plan in 2006. Involved in the process were nine land owners from the private sector who own 45% of the site.
The master plan was handed over in August 2008 and was composed of eight districts including a CBD, a fi nancial district and
GAT EWAY TO A N EW J E D DA HUNLIKE ITS NEIGHBOURS, SAUDI ARABIA IS A COUNTRY WITHOUT ANY HIGH-RISE MASTER PLANNED DEVELOPMENTS. BUT NOT FOR LONG. EMAAR PROPERTIES’ JEDDAH GATE PROJECT IS CURRENTLY UNDER CONSTRUCTION AND LEADING THE CHARGE TO REBUILD JEDDAH’S CITY CENTRE
Words by Benjamin Millington, photos by Rajesh Raghav
King Abdullah towers — projects which are yet to be launched.
Meanwhile Emaar, as one of the land own-ers, has forged ahead with construction of its own development within the old airport, the US $1.6 billion (SAR6 billion) Jeddah Gate project.
JEDDAH GATEJeddah Gate is spread over two land parcels within the site, the fi rst on King Abdullah Road covers 413,000m2 and the second on Abdullah Al Suleiman Street covers 140,000m2. When completed it is envisaged the project will consist of around 70 mixed-use towers, 6000 residential units, 250,000m2 of offi ce space, 75,000m2 of retail space as well as schools, mosques and green areas.
Omar, who is also an architect by profes-sion, says the master plan is based on a series of communal plazas linked by pedestrian walkways, or spines.
“On King Abdullah road we have a crescent plaza surrounded with low rise plots; this creates a visual attraction to the site and attracts people to the area,” says Omar.
“This then links to the second community plaza which is surrounded by retail outlets, a mosque and serviced apartments. The spine then continues to a residential plaza and then to Jeddah Boulevard, which has a wide walkway with cafes and a light rail. The spine ends at the offi ce plaza.”
The fi rst phase of construction kicked off in November 2007 and included the
CLOCKWISE FROM TOP: VIEW FROM THE 18TH FLOOR OF JEDDAH GATE’S RESIDENTIAL TOWERS; A PROPOSED MODEL OF THE PROJECT IN 10 YEARS; ONE OF THE RESIDENTIAL TOWERS UNDER CONSTRUCTION; THE JEDDAH GATE SALES CENTRE WITH A FULL SIZED MOCK UP APARTMENT.
TENDER NEWSTenders for the next three residential towers will be called in Q1 2010
33MAY 23–29, 2009 CONSTRUCTION WEEK
35MAY 23–29, 2009 CONSTRUCTION WEEK
infrastructure for the project’s 413,000m2 plot and three residential towers – one 19-storey and two 22-storeys.
Emaar’s senior project manager Basil Zeitoon says 70% of infrastructure is now complete and the last concrete slabs for the towers should be laid this month, with fi nal handover due in June 2010.
“We have around 850 workers on site now and all construction activities are progress-ing really fast,” says Zeitoon.
“At one point we were laying slabs on an eight day cycle by using a sliding steel shut-tering system for the columns and core walls and plywood formwork for the slabs.
“We used that method right up to the 20th fl oor and the main advantage was speed, but also quality, less labour and safety.”
Aside from the shuttering system, Zeitoon says the managment have employed rela-
tively conventional construction methods for what is a relatively conventional con-struction project.
Assembling the jigsaw arrangement of the tower’s façade, a total of 4500 concrete pre-cast panels, is proving complex, but Zeitoon says they are “getting the hang of it” and will soon be installing 70 panels a week.
DEVELOPMENT CHALLENGESWhile construction of the fi rst towers is humming along, Omar says it hasn’t all been smooth sailing for the development team with regards to the long process of obtaining government approvals.
As the Kingdom gets used to the idea of foreign investment and huge master-planned developments, it seems Emaar has confronted the government’s teeth-ing problems head on.
“When we fi rst started, the authority for approvals was scattered between various government offi ces in Riyadh and Jeddah. There were a lot of issues at that point of time,” says Omar.
“Finally a system was set in place and all the authorities for approval went back to Jeddah and now we have one point of contact which is Jeddah Municipality. That was a year back and I believe in the coming years it will get quicker.”
The original timeframe for completion of the project was between 5 to 7 years, but Omar says it will now, more likely, be between 7 to 10 years due to the delays in the approval process.
The next milestone for the development will be sometime in the next two months, when construction starts on the fi rst offi ce tower — one of three offi ce towers that will visually defi ne the perimeter of the site. The 30-storey tower will have 60,000m2 of sellable offi ce space and begin to create the mixed-use feel that Jeddah Gate will eventually have, says Omar.
Following that will be construction of the second package of three residential towers sometime in the fi rst half of next year. The towers will be identical to the ones cur-rently under construction and are already approved and design-ready.
This will bring the total number of tow-ers to seven, well shy of the intended 70, but Omar says there will come a time
“WE’RE NOT REALLY EAGER TO THROW MORE UNITS ON
THE MARKET OR LAUNCH MORE TOWERS NOW”
EMAAR SALES AND MARKETING DIRECTOR AKRAM OMAR SAYS 70% OF UNITS HAVE ALREADY BEEN SOLD.
FAST FACTSJeddah Gate:
• Total cost is estimated at US $1.6
billion (SAR6 billion)
• The site covers two land plots
totaling 553,000m2
• The project will include construction
of around 70 mixed-use towers
• The fi rst three towers will be handed
over in June 2010
• 70% of infrastructure for the main
land plot is now complete
• Construction of the fi rst 30-storey
offi ce tower will begin in the next two
months
• The site has achieved one million
working hours without accident
when the pace of development picks up – they’re just waiting for more movement in the market.
“This year is tough and from a cash fl ow point of view you can’t really push hard and have units ready on site when the market is not really responding,” he says.
“It won’t affect the long term plan, but we have to go step by step and we’re not really eager to throw more units on the market, or launch more towers now.”
Of the three towers under construction 70% of units have been sold, but Omar says selling is currently a bit of an uphill battle, a fact that necessitated his move from the development team to sales.
Aside from the fi nancial crisis, Emaar faces a big challenge in educating the market about the benefi ts of their product. The concept of high-rise master planned com-munities is completely new to Saudi Arabia, a conservative country where people have traditionally preferred to live in villas.
To counter this Omar says they are provid-ing more separation between the towers, separate male and female health clubs and larger more luxurious apartments than they would offer in any other country.
But he believes that the real selling point will be the creation of a self-sustained com-munity with a pleasant outdoor environment
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
fi lled with cafes, retail stores, greenery, parks and water features - an environment where you can live, work and play.
“This type of project doesn’t exist in Saudi Arabia and it’s diffi cult to educate the market about the benefi ts when there is no point of reference for customers. Emaar is really creating one as it goes.
“I think we will be in a much better posi-tion next year - the offi ce tower will be under construction, we’ll hand over these towers, we’ll start construction on the next three towers and we may even start work on the Crescent Plaza – with this, a sense of community will be starting to form and appeal to customers; this is something that is not there yet.”
Another diffi culty facing the development team is public skepticism about the Jeddah Municipality’s plans for the old airport site, which has remained a piece of desert for almost 30 years.
With little action happening on the rest of the site Omar says it’s been hard to con-vince consumers that the master planned city centre metropolis will ever materialise, but there are positive signs.
The planned Makkah-Madinah railway, which will have a capacity to ferry 72,000 passengers an hour between the holy cit-
ies, will have its one stop in Jeddah located within the old airport site.
Excavation work on the station recently commenced on the site and the train is expected to be functioning in three years - a positive sign that the municipality is committed to the project.
“This is a very major part of the old airport development and means the municipality will have to start work on delivering a road network, sewer lines and other infrastruc-ture,” says Omar.
“It will also help push them to release more land for development and this will tell the people of Jeddah that this devel-opment is real and moving, slowly yes, but it’s moving.
“Jeddah Gate is really a project that was ahead of its time, but over the coming years I have no doubt that it will build up signifi -cant credibility in the market.” �
EMAAR SENIOR PROJECT MANAGER BASIL ZEITOON SAYS HE HAS 850 WORKERS CURRENTLY WORKING ON SITE.
JEDDAH GATE – PROJECT TEAM:DEVELOPER Emaar Middle East
PROJECT MANAGEMENT CONSULTANT CIMS Saudi
ARCHITECT/ENGINEER Saudi Diyar Consultants
MAIN CONTRACTOR International Building Systems Company
SHOWCASE | TOP 10 | PROJECTS | TENDERS | CITY FOCUS | SUPPLIERS
ABOVE: Jubail One - Industrial Zone B is part
of the massive Jubial Industrial City. Today
it is the world’s largest industrial city and
home to a multi-billion dollar petrochemicals
industry that accounts for 7% of Saudi
Arabia’s gross domestic product.
RIGHT: Ongoing infrastructure works at
Jubail Two - stage one, FRP pipeworks. Two
4m diameter pipes will supply seawater at a
rate of up to 200,000m3 an hour with another
4m diameter pipe installed for supply/return.
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CONSTRUCTION WEEK MAY 23–29, 200940
�SHOWCASEITP IMAGESTO BUY IMAGES WITHIN THESE PAGES PLEASE EMAIL [email protected] OR VISIT WWW.ITPIMAGES.COM
JUBAIL INDUSTRIAL CITY, SAUDI ARABIAJubail Industrial City is currently undergoing a massive expansion that is being
overseen by the Royal Commission and Bechtel’s Saudi Arabian entity, the Saudi
Arabian Bechtel Company (Sabco). It includes huge residential areas, a university,
bigger port facilities, a rail network and a new industrial zone called Jubail Two,
which will cover an area of 84km2 and will be located 8km to the west of the original
industrial zone of Jubail One. A US $8 billion (SAR30 billion) refi nery will also be built
and operated by Satorp - a joint venture between Saudi Aramco and France’s total.
CLOCKWISE FROM LEFT: The US $115
million pump station that will supply the
industries with seawater for cooling, is
being built at the end of an open canal; area
construction manager for Jubail Two Aamar
Hassan at the open sea water canal that
supplies Jubail One with seawater; pipes
transporting seawater directly from the Gulf
to Jubai Two run over an 8km stretch; pipeline
corridors at King Fahad Industrial Port are
undergoing a major expansion.
To b
uy im
ages with
in th
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41MAY 23–29, 2009 CONSTRUCTION WEEK
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
CONSTRUCTION WEEK MAY 23–29, 200942
AL KIFAH BATCHING PLANTAl Kifah Batching Plant is the
building supplies wing of the Al Kifah Holding Company. The fi rm, based out of its plant in the Eastern Province of KSA manufactures mobile, portable and static concrete batching and mix-ing plants and accessories including aggregate sand washing plants, cement silos, radial and static conveyors and
electric control panels. The company says it has plants operating “in most Middle East countries,” and adopts “the latest innovative design tech-niques, allowing many combinations to suit different specifi cations and environmental considerations.” The Al Kifah Holding Company, based in Sau-di Arabia, started its activities in 1980 as the manufacturer and supplier of construction machinery and earth moving equipment. www.alkifah.com
SABICSabic’s business lies in the manu-facture of chemicals, fertilizers, plastics and metals.
Sabic, the Saudi Basic Industries Corporation, states it is the largest and most profi table non-oil company in the Middle East, and one of the world’s fi ve largest petrochemicals manufacturers. It is involved in the manufacture of chemi-cals, fertilisers, plastics and metals. It is a public company based in Riyadh. The fi rm says that “when it comes to making business decisions our ethical commit-ments are just as important as economic factors.” The Saudi Arabian government owns 70% of its shares, and the remain-ing 30% are held by private investors in Saudi Arabia and other countries within the GCC. www.sabic.com
RMDRMD Kwikform is currently involved in a push to further its Saudi Arabian business.
RMD Kwikform provides formwork and shoring solutions to the global construction industry. It is a UK headquartered company with operations in 15 countries, including all GCC mar-kets. It has offi ces in Saudi Arabia, UAE, Qatar, Bahrain, Lebanon, Oman and Kuwait. Director James Dewar says the
fi rm is currently involved in a push to take advantage of the burgeoning Saudi Arabia construction market. The com-pany is going to be based out of Jeddah, Riyadh and Al Khobar, and has secured three out of fi ve properties from which to base itself. “We already have a num-ber of full time staff in place in Saudi Arabia,” Dewar says. The group focuses on the construction supply chain, and “the impact each link of the chain can have on the overall project.” www.rmdkwikform.net
WITH THE WEALTH OF PROJECTS UNDERWAY IN SAUDI ARABIA, CONSTRUCTION WEEK FINDS 10 COMPANIES WITH THE POTENTIAL TO PLAY A KEY ROLE IN THE SUPPLY CHAIN
By Jamie Stewart
10 SUPPLIERSYOU SHOULD KNOW
AL MUHAIDIB BUILDING MATERIALSAl Muhaidib Building
Materials (MBM) is one of the larg-est importers, stockists, wholesalers and retailers of building materials to the construction industry in the Saudi
Arabia market, with an emphasis on steel and timber products. The fi rm says it has “long-standing experience and association with the major suppliers of timber and steel products throughout the world.” In Saudi Arabia MBM has over 400,000m2 of warehousing space in 50 locations, which allows it to cover all of the large cities and towns across
the country. MBM is a member of the AK Al Muhaidib and Sons group of companies. The group started out over 40 years ago in the eastern region of Saudi Arabia, and today is comprised of over 20 individual companies operating throughout Saudi Arabia, the GCC, and further afi eld. www.mbm.com.sa
43MAY 23–29, 2009 CONSTRUCTION WEEK
ZAMIL STEEL Zamil Steel Industries announced positive fi nancial results earlier this year for 2008
Zamil Steel Industries is involved in the design, manufacture, and supply of pre-engineered steel buildings. It offers structural steel works for industrial applications, such as electrical power plants, petrochemical plants, desalina-tion plants, steel mills, and high rise buildings.
The company announced the results of its consolidated fi nancial statements for last year in February. Net profi ts for the
ALYUSUF GROUPAlyusuf Group incorporates the Alyusuf Aluminium Fac-
tory, Alyusuf Glass and Mirrors, and Alyufuf Décor. The Alyusuf Aluminium Factory specialises in all types of alu-minium profi les and sections, and carries out works such as windows and doors for residential and commercial buildings, including frameless doors, partitions, showrooms and shop-front fi tting, alu-minium display counters and aluminium kitchens.www.alyusufgroup.com
year were US $60 million (SAR 225.1 million) compared to $55 million for the same period in 2007, an increase of 9%. Zamil Steel Industries was founded in 1977 and is headquartered in Dammam.www.zamilsteel.com
CONSTRUCTION MATERIAL CHEMICAL INDUSTRY
Construction Material Chemical Indus-trial (CMCI) was established in 1984 in Dammam. The fi rm manufactures a range of concrete chemicals to service
the growing Saudi Arabian construction industry. The company developed and grew in capacity as a producer of con-struction chemicals. Its products range from new generation concrete admix-tures, high performance waterproofi ng systems, superior epoxy mortars, adhe-sives and coatings, advanced grouting systems for equipment and machinery,
concrete repair systems and a range of curing and sealing products. The com-pany says it has supplied over 3000 proj-ects across KSA and the Middle East. It has branch offi ces in Riyadh, Jeddah, Madinah, Yanbu, Jubail, Al Hassa and Khamis Mushayt and a network of dis-tributors in the Middle East and Asia.www.cmci-sa.com
EL SEIF ENGINEERING CONTRACTING COMPANY
El Seif Engineering Contracting Com-pany is part of the El Seif Group, a Saudi group of companies with diverse inter-ests in KSA and across the Middle East. The company, established in 1975, is ranked among the top three fi rms in the
fi elds of civil and building construction in the Kingdom, possessing the highest classifi cation awarded in KSA of Grade 1, Class A. It plays a role in the fi elds of operation and maintenance of engineer-ing, technical and electronic systems and installations. The parent company, El Seif Group, launched operations in Saudi Arabia and the Middle East in 1951 in the commerce and transport sectors. www.el-seif.com.sa
LEGRANDLegrand specialises in
products and systems for
electrical installations and information networks, which include switches and sockets, cable man-agement, and home auto-mation systems. Legrand operates through a net-
work of regional specialists, includ-ing its Saudi Arabia base in Jeddah. According to Legrand, “This means
the assurance of having a single contact who is competent and easy to reach.” The fi rm says it has over 4800 active patents covering close to 1450 different systems and technologies. www.legrandelectric.com
PRETECHPretech, based in the Yanbu Industrial
area, operates from a 25,000m2 production plant, with the capacity to produce 250m3 of precast concrete units and 3000m2 of hollow core slabs per day. The company manu-factures precast pre-stressed hollow core slabs for shoring and retaining walls, wall panels and bridge deck units.
Companies listed in this feature are in no particular order of preference.
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
CONSTRUCTION WEEK MAY 23–29, 200944
�PROJECTSA SELECT UAE DATABASE - BUILDING PROJECTS FOCUSTO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO [email protected]
The US $50 billion (SAR187.5 billion) King Abdullah Economic City (KAEC) is a massive development located in Rabigh, Saudi Arabia and is being built by Emaar Properties. The master plan of the city shows that it will be divided into an industrial zone, residential zone, sea resort and sea port. The industrial zone will cover an area of 63 million m², with 17 million m² falling under construction for phase one. The zone will include offi ces, electrical substations, plants, factorites and a mosque.
The sea resort provides a built-up area exceeding 3.5 million m² to be used to build hotels, residential apart-ments, a golf resort, spas and water sports facilities. In addition to that, the sea port provides 14 million m² to build a world-class port on Saudi Arabia’s west coast.
The port will include 30 berths to serve global trade routes between Asia, Europe and Africa. Furthermore, last year King Abdullah visited the city and evaluated the progress. He also inaugurated projects and initia-tives with a total worth of $35 billion. These projects
Project focus
KING ABDULLAH ECONOMIC CITY
PROJECT TITLE CLIENT CONSULTANT MAINCONTRACTOR
VALUE(US$MN)
STATUS
SAUDI ARABIA
240 PUBLIC HOUSING VILLAS IN YANBU Royal Commission for Jubail and Yanbu
In House Al Muhaidib Contract-ing Company
74 project under construction
8000 RESIDENTIAL UNITS - NORTH JEDDAH Kinan/Savola Group/Eleba Company
Not Appointed Not Appointed 640 project in concept stage
CENTRAL QUALITY CONTROL LABORATORY IN RIYADH Ministry of Commerce & Industry Saudi Architects Offi ce
Al Afug Contracting Establishment
10 project under construction
100 BED HOSPITAL IN QATIF Ministry of Health Beeah Planners Saeed Radad Al Zahrany
17 project under construction
THUMAMAH PARK IN RIYADH - PHASE 1 Arriyadh Development Authority Omrania & Associates Not Appointed 28 project under design
JABAL AL KABA DEVELOPMENT - MEGA HOTEL Abdul Latif Jamil Real Estate Dar Al Handasah Saudi Construction-eers Establishment
101 - 250 project under construction
DAR AL QEBLAH COMPLEX Munshaat Real Estate Projects Company
Zuhair Fayez & Partners
Saudi Binladin Group 180 project under construction
UMM AL QURA UNIVERSITY EXPANSION - STAFF ACCOMMODATION - PHASE 2
Umm Al Qura University SaudConsult Nesma & Partners Contracting Company
16 project under construction
IMAM ISLAMIC UNIVERSITY IN RIYADH - ISLAMIC STUDIES COLLEGE Imam Islamic University Tibsa/In House Saudi Art of Architec-ture Maintenance
27 project under construction
UMM AL QURA UNIVERSITY EXPANSION - PHARMACY COLLEGE Umm Al Qura University SaudConsult Al Arrab Contracting Company
19 project under construction
include a science and research complex, Thunderbird University, Health Care City and KAEC Media City. Con-struction began in 2006. The fi rst phase is expected to be completed by 2011, while the overall project is due to be fi nished in 2025. �
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THE FIRST PHASE OF KAEC IS DUE TO BE COMPLETED BY 2011.
PROJECT TITLE CLIENT CONSULTANT MAINCONTRACTOR
VALUE(US$MN)
STATUS
SAUDI ARABIA
KING FAHD NATIONAL LIBRARY Arriyadh Development Author-ity/King Fahd National Library
SaudConsult/Gerber Architects
Saudi Binladin Group 78 project under construction
RESIDENTIAL TOWN IN AL BATHA - PHASE 4 Ministry of Finance Abdulrahman Al Noeim Engineering Consultant
Al Eraini Contracting Company
14 project under construction
TABUK DOMESTIC AIRPORT EXPANSION General Authority for Civil Aviation Saudi Consolidated Engineering Company
Saudi Binladin Group 59 project under construction
ITCC PARK IN RIYADH The Public Pension Agency Zuhair Fayez & Partners
Not Appointed 530 award awaited for the main contract
AL FANAR COMMERCIAL CENTER IN DAMMAM Sheikh Saleh Al Subeaei Arabian Services Group
Asmael General Con-tracting Company
2.5 - 15 project under construction
TV STATION IN DAMMAM Ministry of Culture & Information Zuhair Fayez & Part-ners/Theatretech
First Gulf Contracting Company
27 project under construction
BENAA CITY IN RIYADH Benaa al Kawaed Real Estate Development Company
Abdul Elah Al Mo-hanna Engineering
Not Appointed 55 project under design
PEDIATRIC & MATERNITY HOSPITAL IN RAFHA Ministry of Health Al Mashriq Contracting
Al Mashriq Contracting
53 project under construction
IMAM ISLAMIC UNIVERSITY - PHASES 1 & 2 Ministry of Higher Education Tibsa Al Fouzan Trading & General Construction
133 project under construction
EXTERNAL ATRIUM IN THE PROPHETS MOSQUE Ministry of Hajj Dar Al Handasah Saudi Binladin Group 1000 project under construction
LABORATORY FOR GENERAL PRODUCTS IN JEDDAH Authority for Management & Specifi cation
Soleiman Abdullah El Kheraiji Consultant
Naif Abo Ryash Establishment
3 project under construction
AL DOSSARY TOWER IN DAMMAM Yousef Al Dossary Saudi Designers Engi-neering Consultants
Al Zahrani for Trading & Contracting
20 project under construction
SCHLUMBERGER OPERATION BASE COMPLEX IN DAMMAM Schlumberger Middle East SA Al Hojailan Engineer-ing Consulting Offi ce
Al Hojailan Engineer-ing Consulting Offi ce
19 project under construction
300-BED HOSPITAL IN RIYADH Ministry of Health Abdulrahman Al Noeim Engineering Consultant
Al Fouzan Trading & General Construction
57 project under construction
TWIN TOWERS IN JEDDAH Salah Serafi Corporation Abnia Design Consultant
Mubarak Al Guthmi Contracting Company
80 project under construction
INDUSTRIAL INSTITUTE IN DAMMAM Zamil Industrial Investment Company
Al Awami Planners & Consulting
Amjad Shami Con-tracting Establishment
20 project under construction
HQ FOR THE INTERIOR MINISTRY IN JEDDAH Ministry of Interior SaudConsult Al Mashriq Contracting
16 project under construction
� PR
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> For the latest projects information visit www.ConstructionWEEKonline.com/projects
41APRIL 18–24, 2009 CONSTRUCTION WEEK 47APRIL 11–17, 2009 CONSTRUCTION WEEK 59APRIL 4–10, 2009 CONSTRUCTION WEEK
CONSTRUCTION WEEK MAY 23–29, 200946
�TENDERSFREE TENDERS AND SERVICES IN THE CONSTRUCTION INDUSTRYTO INCLUDE YOUR TENDERS IN THIS SECTION EMAIL TENDER DETAILS TO [email protected]
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BAHRAIN
Issuer: Kingdom of Bahrain Ministry of WorksTender No: SPDh/091/08Description: Suitably experienced dredging and reclamation fi rms invited to bid for the reclamation and marine works for the new fi shing harbour at Malkiya.Closes: 27 MayBond: BHD5000Contact: www.tenderboard.gov.bh
Issuer: Municipalities and Agricultural AffairsTender No: FIN/04/09Description: Construction of Janbiyah Garden.Closes: 27 MayFees: BHD50 Bond: BHD4000Contact: www.tenderboard.gov.bh
Issuer: Bahrain Electricity and Water AuthorityTender No: 099/2009/4120Description: Design, supply, installation of a jib crane arm with electric hoist.Closes: 27 MayFees: BHD15Bond: BHD500Contact: www.tenderboard.gov.bh
Issuer: Bahrain Electricity and Water AuthorityTender No: 091/2009/4120Description: Supply, installation, testing and commissioning of steam valves and servomotors for a steam turbine.Closes: 27 MayFees: BHD25Bond: BHD1000Contact: www.tenderboard.gov.bh
Issuer: Civil Aviation AffairsTender No: EMD/9/P/311Description: Design and reconstruction of existing pump station at Bahrain International AirportBond: BHD1000Contact: www.tenderboard.gov.bh
EGYPT
Issuer: Egyptian company for the Metro Management and OperationDescription: Request of international offers for the supply of electric metro trains to operate on Cairo Metro’s fi rst line. Closes: 23 MayFees: EGP50,000Bond: EGP5,000,000Contact: Ramses Square, Cairo Tel: +20 2 267 0932
Issuer: Central Egypt Flour MillsDescription: Design, supply and erection of two fl our mills.Closes: 25 MayFees: EGP20,000Bond: EGP80,000Contact: Soultan Land, Nile Cornich, Minya. PO Box 13Tel: +20 86 364 9997
Issuer: Egyptian Electricity Transmission Company Description: Design, manufacture and supply two 220KV and 2 x 125MVA power transformers.Closes: 15 JuneFees: EGP11,259Bond: EGP563,000Contact: 5 Sixth October street, El Mounib, GizaTel: +20 3 571 6390
Saudi Railway Organisation manages all of the rail transport in Saudi Arabia, which provides a freight service on three main lines totalling 1018km. These tracks currently connect the region’s capital of Riyadh with the Eastern Province’s city of Dammam. The fi rm, however, plans to expand this network by adding the Saudi Landbridge, a 945km line from Riyadh to Jeddah and a 115km line from Dammam to Jubail; and the Haramain High Speed Rail Project linking Saudi’s two holy cities, Makkah and Madinah via Jeddah.
In addition, the organisation plans to construct the North South Railway from Riyadh via Buraidah, Hail and Al Jawf to Al Haditha. The 2400km-long railway, which is currently under construction, will be used for the transportation of minerals and passengers in the Kingdom. Last week, Saudi Railway Organisation awarded a US $37.8 million (SAR142 million) contract to UK-based engineering fi rm Foster and Partners, according to reports from Jeddah-based Okaz newspaper.
The company will carry out engineering designs for the passenger sta-tions of the Hamarain railway. Al Rajhi consortium won the civil works for the $1.9 billion project in January 2009. Construction is scheduled for completion in 2013. �
Tender focus
SAUDI RAILWAY ORGANISATION
THE 2400KM NORTH SOUTH RAILWAY PROJECT IS CURRENTLY UNDER CONSTRUCTION.
47MAY 23–29, 2009 CONSTRUCTION WEEK
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OMAN
Issuer: Rural Areas Electricity CompanyTender No: 95/2009Description: Construction of Khadrea new power station in Wusta region. Closes: 18 MayFees: OMR1,080,000Contact: www.tenderboard.gov.om
Issuer: Mazoon Electricity CompanyTender No: 104/2009Description: Upgrading of Ashkhara substation to 2x10MVA transformers in al Sharqiya region. Closes: 25 MayFees: OMR187,000Contact: www.tenderboard.gov.om
Issuer: Mazoon Electricity CompanyTender No: 102/2009Description: Extension of power supply to Al Qateen, Abu Qutayifan, Al Hais, Maqttah in Dima and Wadi Atyin.Closes: 25 MayFees: OMR224,000Contact: www.tenderboard.gov.om
Issuer: Ministry of Transport and CommunicationTender No: 110/2009Description: Construction of roads at Al Jabal Al Akhdhar.Closes: 1 JuneFees: OMR175,000Contact: www.tenderboard.gov.omIssuer: Public Establishment for Industrial EstatesTender No: 109/2009Description: The scope of work includes the expansion of Nizwa Industrial Estate- phase two.Closes: 1 JuneFees: OMR100,000Contact: www.tenderboard.gov.om
Issuer: Ministry of Transport and CommunicationTender No: 134/2009Description: Consultancy services including designs and construction supervision for development of Shinas Port.Closes: 1 JuneBond: OMR500,000Contact: www.tenderboard.gov.om
Issuer: Rural Areas Electricity CompanyTender No: 125/2009Description: Additional generation at Khasab power station in Musandam Governorate.Closes: 15 JuneFees: OMR570,000Contact: www.tenderboard.gov.om
Issuer: Ministry of Transport and CommunicationTender No: 149/2009Description: Consultancy services for the design and supervision of the new headquarters and operations centre for Oman Post Company.Closes: 15 JuneFees: OMR100,000Contact: www.tenderboard.om
Issuer: Supreme Committee for Town PlanningTender No: 128/2009Description: Hasik infrastructures master plan project for the construction of internal roads, surface water drainage and wastewater treatment plant.Closes: 22 JuneFees: OMR1,500,000Contact: www.tenderboard.gov.om
Issuer: Ministry of EducationTender No: 129/2009Description: Construction of 18 classrooms at Abu Al Muthir boys basic education school at Wadi Quriyat.Closes: 22 JuneFees: OMR428,000Contact: www.tenderboard.gov.om
Issuer: Oman Electricity Transmission CompanyTender No: 145/2009Description: Construction of 132/33KV grid station at Muttrah and associated 132KV transmission line.Closes: 22 JuneFees: OMR1,500,000Contact: www.tenderboard.om
Issuer: Ministry of EducationTender No: 131/2009Description: Construction of 14 classrooms at a mixed, basic education school at Wadi Al Hyoul, Wilayat.Closes: 22 JuneFees: OMR347,000Contact: www.tenderboard.gov.om
QATAR
Issuer: Qatar PetroleumTender No: GT09105700Description: Demolition of old and redundant buildings including residential houses, offi ces and workshops. Closes: 7 JuneFees: QAR500Bond: QAR5000Contact: Contracts Department – Corporate Division, Qatar Petroleu, PO Box 3212, Royal Plaza, G Wing, 4th Floor, Room G11, Doha
Issuer: Qatar PetroleumTender No: GT09106400Description: Pipeline maintenance at DukhanCloses: 28 JuneFees: QAR500Contact: Contracts Department - Corporate Division, Qatar Petroleum, PO Box 3212, Royal Plaza, G Wing, 4th Floor, Room G11, Doha
SAUDI ARABIA
Issuer: Royal Commission for Jubail & YanbuTender no: PIC A-1621ADescription: The scope of work includes the procurement and construction of the expansion of the sanitary sewer system at Yanbu Industrial City. The work will include the construction of a new lift station.Closes: 24 MayFees: SAR1000Contact: Directorate General for the Commission at Yanbu PO Box 30031
Issuer: Royal Commission for Jubail & YanbuTender no: 712-C03Description: Primary and secondary site development infrastructure at Mutrafi ah stage two. Closes: 25 MayFees: SAR33,500Contact: Directorate General for the Commission at Yanbu PO Box 30031
Issuer: Ministry of TransportTender no: MOT-4Description: The scope of work includes the construction of
phase two of the 2nd ring road in Makkah.Closes: 31 MayFees: SAR2000Contact: Ministry of Transport Contracts Department
Issuer: Ministry of TransportTender no: MOT-3Description: The scope of work includes refurbishment of intersection two and seventeen at Riyadh ring road.Closes: 2 JuneFees: SAR2000Contact: Ministry of Transport Contracts Department
Issuer: Ministry of TransportTender no: MOT-1Description: Refurbishment of exits and entrance roads of King Saud bin Abdulaziz University in Riyadh.Closes: 3 JuneFees: SAR2000Contact: Ministry of Transport Contracts Department
Issuer: Ministry of TransportTender no: MOT-1Description: Construction of Riyadh-Besha Highway.Closes: 3 JuneFees: SAR2000Contact: Ministry of Transport Contracts Department
Issuer: Saline Water Conversion CorporationTender no: SWCC-1Description: Construction of safety and fi re building in Al Aziziah. Closes: 21 JuneFees: SAR500Contact: www.swcc.gov.sa
UAE
Issuer: Dubai Electricity and Water AuthorityTender No: CE/0802/2008Description: Request for eligible bidders to a repair gas turbine exhaust system for station ‘E’.Closes: 24 MayFees: AED1000Contact: Dubai Electricity and Water Authority, PO Box 564, Dubai, UAE
Issuer: Federal Electricity and Water AuthorityTender No: E23/09Description: Extension of existing 33/11KV substations in the Northern Emirates.Closes: 9 JuneFees: AED1500Contact: Federal Electricity and Water Authority, PO Box 1672, Dubai, UAE
Issuer: Federal Electricity and Water AuthorityTender No: E11/2009Description: 33/11KV substation works in Northern Emirates.Closes: 9 JuneFees: AED4000Contact: Federal Electricity and Water Authority, PO Box 1672, Dubai, UAE
Issuer: Dubai Electricity and Water AuthorityTender No: CW/0104/2009Description: Supply of one complete pump-motor without base frame for Najma Pumping Station, phase three.Closes: 15 JuneFees: AED200Contact: Dubai Electricity and Water Authority, PO Box 564, Dubai, UAE
> Check the latest tenders online at www.ConstructionWEEKonline.com/tenders
CONSTRUCTION WEEK MAY 23–29, 200948
�SPECIALIST SERVICESCONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORYTO ADVERTISE PLEASE CALL +971 4 435 6119, OR EMAIL [email protected]
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HVAC & PLUMBING RELATED EQUIPMENT
Owned by Al Rajhi Investment Group, Precast Technologies (Pretech) was established in Saudi Arabia to manufacture precast prestressed hollow core slabs, which can be used as wall panels, shoring and retaining walls and bridge deck units. Other precast concrete elements are designed, produced and erected by Pretech such as wall-beams, columns, staircases, girders, foundations and barriers.
The company, which was formed in 2006, has two mixer plants with extruders producing hollow core slabs of thickness varying from 150mm to 500mm. Pretech is located in Yanbu Industrial area and the company’s new production plant covers an area of 25,000m². Current-ly the company has the capacity to produce 250m³ of precast concrete units and 3000m² of hollow core slabs per day.
It also has a concrete transportation system - a shuttle for fast delivery to the casting and extruder machines. All products are manufactured inside the plant using technologies such as rotating tables, a central shifter for shifting tables, fl ying buckets for pouring concrete and a laboratory for all types of tests. Pretech’s quality department tests all concrete for its compressive strength, slump and entrained air.
Supplier focus
PRECAST TECHNOLOGIESMANUFACTURER OF PRECAST CONCRETE PRODUCTS
PRESIDENT OF PRECAST TECHNOLOGIES HENRIK PEDERSEN.
Final quality checks for specifi cation compliance, integ-rity, and appearance are also carried out on individual pieces prior to delivery. �
> For directory information visit www.ConstructionWEEKonline.com/directory
CONSTRUCTION SELF-HELP
CONSTRUCTION WEEK MAY 23–29, 200950
�SPECIALIST SERVICESCONSTRUCTION PRODUCTS AND SERVICES FOUND EASY IN CONSTRUCTION WEEK’S DIRECTORYTO ADVERTISE PLEASE CALL +971 4 435 6119, OR EMAIL [email protected]
> For directory information visit www.ConstructionWEEKonline.com/directory> For directory information visit www.ConstructionWEEKonline.com/directory
BUILDING MATERIALS
STEEL
WOOD AND TIMBER
FLOORING
HEM, IPE, IPN, UPNHEM, IPE, IPN, UPN
BUILDING MATERIALS
CONSTRUCTION WEEK MAY 23–29, 200952
CITY UPDATE
JEDDAH, SAUDI ARABIA
The city of Jeddah, which is located on the coast of the Red Sea, was founded as a fi shing hamlet 2000 years ago. Due to its closeness with Islam’s holy city of Makkah, in 647AD Jeddah turned into a port for Muslims taking part in the annual rituals associated with Hajj.
With a current population of more than 3.4 million, Jeddah comprises a number of impressive features including an 80km corniche along the coastline, as well as the
King Abdulaziz University, which 37,000 students attend; and King Abdulaziz Inter-national Airport, the country’s third largest airport, which has a specially built terminal for pilgrims destined for Makkah.
Because of the major problems of conges-tion during Hajj, when over three million people travel to the region, a new railway line will be constructed, which is intended to cut the fi ve hour car journey to Makkah to just half an hour.
THE LATEST PROJECTS AND NEWS FROM JEDDAH, SAUDI ARABIA
By Sarah Blackman
JEDDAH HAS A
POPULATION OF
3.4MILLION
JEDDAH ISLAMIC PORT WAS BUILT FOR MUSLIM PILGRIMS TRAVELING TO MAKKAH DURING HAJJ.
KHALED DESOUKI/AFP/GETTY IMAGES
53MAY 23–29, 2009 CONSTRUCTION WEEK
JEDDAH MEGA PROJECTS
Jeddah GateClient: Emaar PropertiesEstimated value: US $1.6 billionSchedule: The project is under construction and will be built in several phases. The expected development time is ten years.Scope: Jeddah Gate is a big development in the heart of Jeddah, located on two sites. The fi rst is spread over 413,000m² and is located along King Abdullah Street and the second is spread over 140,000m² along Abdullah Al Suleiman Street. The project will comprise 6000 residential units, 230,000m² of commercial space and 75,000m² of gross rentable area for retailers.
Haramain high-speed rail projectClient: Saudi Railway OrganisationEstimated value: US $1.9 billionSchedule: Construction is scheduled for completion in 2013.Scope: The railway will be a high speed electrifi ed passenger double line between Makkah, Madinah and Jeddah. The speed of the train is 360kmph. The design, construction, operation and maintenance of HHR will be executed in two phases.
Mile TowerClient: Kingdom Holding CompanyContractors: Omrania & Associates are the main consultants.Estimated value: US $15 billionSchedule: The project is now at design stage and construction is expected to start in the fi rst quarter of 2010. It is set to be completed in 2014. Scope: The project calls for the construction of the 1600m-high skyscpaper. The Mile Tower will be a mixed-used building and include apartments, hotels, commercial shops and malls. It will be the tallest skyscraper in the world.
King Abdullah University of Science & TechnologyClient: Saudi AramcoContractors: Saudi Oger, Saudi Binladin Group, Huta Sete Marine WorksEstimated value: US $3.5 billion
Vehicles have started to cross the newly completed Jeddah fl yover at the intersection between Muhammad (Tahliah) Street and Prince Miteb (Arbaeen) Street.
The US $5.1 million (SAR19.3 million) project started in January 2008 and consists of 3.3m-wide lanes in both directions.
Ahmad Banafa, general supervisor of projects at the Jeddah municipality, which awarded the contracts for the infrastruc-ture projects, told Arab News that the opening of the fl yover was delayed by a month due to unexpected circumstances relating to lack of communication between clients.
There are 18 ongoing road development projects including Quraish Street along King Fahd Road, which are estimated to cost $266.7 million, according to deputy mayor for construction projects Ibrahim Kutubkhanah.
“Projects currently under bid are estimated at $293.7 billion while 35 projects worth $801 million are still in the design phase,” said Kutubkhanah.
THE LATEST NEWS FROM JEDDAH
THE JEDDAH GATE PROJECT IS WORTH AROUND US $1.6 BILLION.
GREENLIGHT FOR NEW INFRASTRUCTURE PROJECTS
Eight companies including Saudi Aramco were awarded the Makkah Award for Excellence in Jeddah last week for their contributions to the development of the province.
The winners were announced by Prince Khaled Al Faisal gov-ernor of Makkah at the event, which was held for the fi rst time.
“It completes our development strategy in the region by encour-aging outstanding work from both individuals and organisations,” he said.
The award was established last year and organised by the Makkah Board of Culture headed by Prince Khaled. It aims to increase com-petition and creativity by giving recognition in selected fi elds.
“The award is open to anyone who feels that he or she has contributed signifi cantly to the development of the region,” the prince added. The award is also open to both local and interna-tional companies. “What’s important is the signifi cance of their contributions to the Makkah region.”
The Makkah Award of Excellence is divided into eight catego-ries including administrative excellence, which Saudi Aramco Wester Region walked away with.
In addition, the Architectural Excellence Award went to the Khuzam Development Project initiated by the Jeddah munici-pality and Dar Al Arkan Company. The project is turning an undeveloped area into a city landmark.
The Environmental Excellence Award went to the Arafat Tree Project initiated and funded by Abdul Rahman Faqeeh, while businessman Saleh Kamel scooped the Economic Excellence Award for initiating signifi cant projects in the province.
MAKKAH CONSTRUCTION PLAYERS AWARDED FOR EXCELLENCE
Schedule: In July 2007, Saudi Oger was awarded the main construction contract for the university campus. Project duration is two years and is due to be completed in September of this year.Scope: The project calls for the construction of King Abdullah University of Science and Technology on Thuwal approximately 80km north of Jeddah. Kaust is divided into four packages; residential buildings, civic buildings, a univeristy campus and a marina. The university will cover over 36 million m² and will be capable of serving up to 20,000 people.
JEDDAH SMALL PROJECTS
Client: Saudi Electricity CompanyEstimated value: US $50 millionSchedule: Mohammad Al Ajmy Establishment was awarded the main construction contract this month. The project is currently under construction and is expected to be completed in quarter two of 2011.Scope: The project calls for the construction of a power cable in Jeddah. The cable will connect Al Quizah 2 Substation, Al Nozha Substation and Mina Substation with the national grid.
Client: Saudi Electricity CompanyEstimated value: US $60 millionSchedule: Saudi Services for Electro Mechanic Works Company was awarded the main construction contract this month. The project is currently under construction and is expected to be completed in quarter two of 2012.Scope: The project calls for the construction of a 380KV power cable in Jeddah. The cable will connect Al Kindra Substation with University Substation in Jeddah city.
Client: Aldar Al KhasaEstimated value: US $200 millionSchedule: Freyssinet Saudi Arabia was awarded the main construction contract in December 2008. Construction is in progress and is expected to be completed in the fi rst quarter of 2012.Scope: The project calls for the construction of two towers at Jeddah Business Park.
> For the latest on Saudi Arabia visit www.ConstructionWEEKonline.com/saudiarabia
CONSTRUCTION WEEK MAY 23–29, 200954
Construct SAFEConstruction Week and Build Safe UAE have come together to bring you an illustration to communicate health, safety and welfare risks to all construction stakeholders (especially the workforce) to prevent accidents on site. Exclusive to Construction Week.
Farik: Apprentice labourer new to the industry with no experience. Poor health, safety & welfare knowledge
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Introducing the Construct Safe lead characters (from Left to Right)
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CONSTRUCTION WEEK MAY 23–29, 200956
DIALOGUEGEOFF SANDERSON
What projects are you working on in Saudi Arabia?In Jeddah we’re working on the metropolitan park, part of the proposed open space network, which is an east west park network that connects Jeddah’s waterfront to the mountains on the other side of the city. The part we are working on is 12km and we’re doing that in joint venture with Zuhiar Fayez, a very large consultancy in KSA. We’re also doing three other sizable projects in Riyadh at the moment. That’s a fair start and these projects have all come in the last three months.
Did your company make the move to Saudi Arabia as a result of the slow down?Not as a result of the slow down, we planned this a long time ago in anticipation of a signifi cant slowdown in Dubai and started our move here before that actually happened, hence we’re already up and running. Our offi ce is almost ready to open in Riyadh; we may also open an offi ce in Jeddah and in Bahrain in the long term. Our company is part of the Packer Group in Australia and so we are well managed and well fi nanced. We just started a major project in Tunisia and so there is also a chance of opening an offi ce there as well. Our resources were such that a move to Saudi Arabia was not only manageable, but it was a logical step for us to take.
How has your business been affected by the slowdown?Some of our staff is currently on leave because 18 out of our 22 projects in Dubai were put on hold and that had an awful effect, except that some of our really big projects were outside Dubai. None the less we had to downsize to a small extent, but we’re now rebuilding again and will be hiring some new staff next month.
Do you have any advice for people coming to the region on diffi culties they may face in setting up here?The reason it took us quite a while to come into the Saudi market is that we took our time trying to fi nd the right sponsor. You must fi nd a sponsor that is compatible with your business and highly regarded in the
Taking a chance on Saudi ArabiaGreen Concepts Landscape Architects (GCLA) has moved to Saudi Arabia but was it due to desperate times and was it a desperate measure? CW asks GCLA’s principle Geoff Sanderson.
market. Our sponsor is the Abunayyan Group and they are just delightful people. I had meetings with managers of some of the companies that they already sponsored and everyone spoke very highly of them. Those companies were also very successful and enthusiastic. I met with so many others that were only half interested and I knew that their agenda didn’t match ours. That’s the key piece of advice. Those that are hasty to get into the market might make very expense mistakes when it comes to choosing a sponsor. Our sponsor has opened so many doors for us and made it relatively easy for us in a way.
And what about one’s fi nances?It’s not an easy market unless you’re very well fi nanced – you have to spend money to make money. You’ve got to expect to spend a lot of time without a cash fl ow forging new relationships and making contacts. There may be some small or medium sized consulting fi rms that think this is the new Makkah, but it comes with a lot of risk, the same as setting up in North Africa or Eastern Europe.
Have there been any unexpected challenges setting up in Saudi Arabia?No, because I’ve been so long in this region I was prepared for it. The relative novices may not expect it to be quite as diffi cult to penetrate. The other thing they won’t expect is that the fees are considerably less than what we are used to in the UAE. You must expect lesser fees and reduce your margins, you
can’t expect to trade based on the margins that we were used to in the healthy days in Dubai and we’ve had to adjust our services accordingly. On the positive side your overheads are much less in Saudi - rentals are much less, petrol is half the price, salaries for most people are less, food prices are less – nearly everything that you are going to pay for in Saudi is going to be less than the UAE. So our costs come down and we can provide a competitive service, but in total it is more than a client is used to paying for what they’ve had in the past from an engineering company.
