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Wednesday, 12 December 2018 06:51

Advanced Electronics Company (AEC), a Riyadh-based Saudi economic offset programme company, has signed a memorandum of agreement (MoA) with Honeywell to collaborate on business development activities for smart and connected...

‘Iraq moving towards the green path’

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Wednesday, 12 December 2018 06:22

Iraq is seeking to diversify its energy dependency by building large-scale solar, wind and biomass facilities within the next decade, expecting to supply more than 10 per cent of its...

SPARK: Saudi Arabia’s hub for energy development

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Wednesday, 12 December 2018 04:54

Mohammed bin Salman bin Abdulaziz, Crown Prince of Saudi Arabia, has inaugurated the 50-sq km King Salman Energy Park (SPARK), located in the kingdom’s Eastern Province

CE-Ventures acquires stake in UAE’s logistics firm Transcorp

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Tuesday, 11 December 2018 06:35

CE-Ventures, the corporate venture capital arm of UAE-headquartered global conglomerate Crescent Enterprises, has invested in Transcorp International, one of the UAE’s leading logistics and last-mile distribution service providers, acquiring a...

Complete, affordable and fully automated traceability labelling solution from Brady

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Tuesday, 11 December 2018 06:20

Brady Corporation presents a complete and reliable labelling solution for printed circuit boards that can automate traceability and generate smart manufacturing data about SMD production lines at affordable costs

Major COSCO terminal opened in Abu Dhabi

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Monday, 10 December 2018 06:03

COSCO SHIPPING Ports and Abu Dhabi Ports have inaugurated CSP Abu Dhabi Terminal at Khalifa Port, aiming to position Abu Dhabi as the regional hub for COSCO’s global network of...

Rick Hancock is Atkins’ new country director in Saudi Arabia

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Monday, 10 December 2018 04:46

Atkins, the UK-based global design, engineering and project management consultancy and a member of the SNC-Lavalin Group, has announced the appointment of Rick Hancock as country director for design and...

‘Hiring in Middle East’s construction and infrastructure sector to rise’

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Sunday, 09 December 2018 06:49

The Middle East construction and infrastructure activities have shown a decline in the Q3 2018, with an increasing additional headcount being highlighted across the region due to future workload expectations,...

RENAC’s green banking programme launched for MENA

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Sunday, 09 December 2018 05:06

The Renewables Academy AG (RENAC), an international training provider for green energy technologies, has announced the start of the scholarship application phase for one of the trainings under its 18-month...

Oman needs to prioritise energy transition policies: Survey

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Sunday, 09 December 2018 04:16

Oman needs to prioritise strategies for reducing national demand for power rather than investing in delivering new energy supplies to meet its soaring call on energy, according to a survey

New mast operator lift for Potain cranes from Manitowoc

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Thursday, 06 December 2018 04:24

Manitowoc, one of the leading global manufacturers of cranes and lifting solutions, has launched an internal mast operator lift for Potaintop-slewing cranes

Tunisia-South Africa Business Council to boost trade and investment

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Thursday, 06 December 2018 04:06

Tunisia and South Africa are keen to establish the joint South Africa-Tunisia Business Council, aiming to stimulate trade and investment opportunities between the countries

Raysut Cement eyes US$100mn takeover of Kenya’s ARM Cement

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Thursday, 06 December 2018 04:04

Oman’s one of the leading cement manufacturers Raysut Cement Company is planning to acquire ARM Cement of Kenya, a move that is in line with Raysut’s strategy to expand businesses...

ICD to introduce blockchain solutions in Islamic banking system

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Wednesday, 05 December 2018 10:00

Islamic Corporation for the Development of Private Sector (ICD) and I-FinTech Solutions (IFTS) have signed an investment agreement to implement blockchain solutions for Islamic banks

New HIMOINSA generators with Stage V engines

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Wednesday, 05 December 2018 06:20

HIMOINSA is working on the design of a new range of generator sets with STAGE V engines, based on EU Regulation 2016/1628 for off-road mobile machinery (NRMM)

DuPont opens RO production facility in Saudi Arabia

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Wednesday, 05 December 2018 04:09

Highlighting the importance of local water investment, DuPont Water Solutions, a part of the DuPont Safety & Construction business, recently opened its new reverse osmosis (RO) production line in Saudi...

GCC construction surveyed ahead of Big 5 opening

GCC-construction-survey-Big-5-openingThe Big 5 will be co-located with PMV Live and Middle East Concrete.As The Big 5 rolls back into town, Technical Review takes a look at recent research carried out by Ventures Middle East on the growing amount of investment in infrastructure projects throughout the GCC region

Despite the “weak rhythm” in energy prices, a sound future for the region’s construction industry has been forecast by Abu Dhabi-based business consultancy Ventures Middle East in a report specially commissioned by the organisers of The Big 5 exhibition ahead of this year’s opening in Dubai on 17 November.

According to the report, GCC construction market 2014 – The boom, challenges and future outlook, countries within the GCC are being “perceived by global investors as a safe haven for international investment”.

When combined with a more recent Ventures Middle East report entitled GCC infrastructure market 2014 the results reveal that the good times may be set to return for the region’s construction industry.

Apart from the usual reasons for such confidence, the analysts cite preparations well under way for World Expo 2020 in Dubai and the FIFA World Cup 2022 in Qatar.

They also cite the general diversification of individual national economies, the construction of facilities for the increasing number of world-scale cultural and entertainment events, the growth of tourism in all its forms including religious, and the rapid expansion of a GCC-wide overland transport network with a particular focus on moving freight.

In a snapshot taken in May 2014, the current construction workload has been summed up by Ventures Onsite Projects’ database as Saudi Arabia accounting for 45 per cent of the total value of projects across the GCC, the UAE responsible for 31 per cent of projects across the community and Qatari projects accounting for 10 per cent of the total value. Together, projects in Bahrain and Kuwait add up to nine per cent.

Grouped together by value, ongoing buildings and infrastructure projects by country are listed as (infrastructure in brackets, all in US$ millions):

• Saudi Arabia: 787,101 (163,402)
• UAE: 621,788 (95,121)
• atar: 138,187 (103,022)
• Kuwait: 70,476 (32,871)
• Oman: 52,411 (32,121)
• Bahrain: 49,798 (14,270)

Aggregated construction contracts awarded by each country last year alone were: KSA – US$77,137mn; UAE – US$40,338mn; Qatar – US$18,022mn; Kuwait – US$11,169mn; Oman – US$10,922mn; and Bahrain – US$3,069mn.

“Contractor awards in the buildings and infrastructure sectors alone was US$119.05bn in 2013 and is anticipated to reach nearly US$134.11bn by 2014,” the mid-year report states. The UAE’s share of buildings and infrastructure-only awards of this amount is expected to reach US$37.8bn this year.

A list of key ‘movers and shakers’ in the period 2015 and beyond was also provided, which includes the preparations for World Expo 2020 in Dubai, the world’s tallest commercial tower in the same city, the revival of Kuwait’s Causeway project connecting Shuwaikh Port to the city, and the finalisation of work on the landmark Kingdom Tower in Jeddah.

“Regional and transportation linkages [are] the key to maximising growth potential of the GCC,” the authors say. But all of this will come at a price, including heavy demand on both building materials and labour.

No such single-sector report would be complete without a “Looking ahead” conclusion, presented in this case as a handy ‘check list for GCC construction market participants' based on simple tick-box questions designed for participants from overseas in particular.

As summarised by Technical Review, these include:

• Are you already licensed to do business here, with identified agents/distributors in place?
• Are your products specified with the professionals – architects and consultants – in the region?
• Is your company/its products and services registered with major government project owners?
• Are you registered with relevant government entities such as the Health Authority and those responsible for updating the Building Code?
• Have you established contacts with local contractors?
• Is your after-sales service and support mechanism in place?
• Do you have a marketing plan that demonstrates and showcases your products at events like The Big 5?

All in all, just what the visitor from overseas to the largest construction event held anywhere in the Middle East needs in the form of a concise background briefing.

The more recent of the two reports from Ventures ME, focusing specifically on rail transport, roads, airports, other ports and Free Trade Zones (FTZs), predicts that more than US$45bn of infrastructure contracts will be awarded by the end of the current year – twice the level of business achieved back in 2012.

The study says that US$97bn worth of rail contracts are already under way as the 2,100+ km GCC rail network aims for completion towards the end of the current decade. Spend on GCC airports over the next five years will approach US$300bn, while investment in seaports will be of the order of US$25bn. Doha’s New Port project, for example, should be completed in 2020, well in time for deliveries associated with the 2022 FIFA World Cup.

A vital part of most GCC countries’ infrastructure development takes place within FTZs, the consultants point out, with the UAE being the best example.

With this in mind, companies set to attend this year’s Big 5 exhibition at Dubai World Trade Centre will be looking to benefit from attending the show.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

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