King Salman launches US$22bn worth of projects in Riyadh

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Sunday, 17 February 2019 06:41

Saudi Arabia’s King Salman has launched an ambitious programme of projects in Riyadh worth billions, which is expected to enhance the living standards of residents

Investcorp and ASI launch JV for GCC infrastructure investing

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Sunday, 17 February 2019 04:32

Bahrain’s Investcorp and Aberdeen Standard Investments (ASI) have launched a joint venture that will invest in social and core infrastructure projects in GCC countries

Cat updates M Series wheel loaders

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Friday, 15 February 2019 06:56

Caterpillar has announced Cat M Series wheel loader product update (950M-982M) with an aim to provide reduced maintenance costs, improved operator comfort, payload management enhancement and new configurations

Topcon introduces new HiPer VR versatile GNSS receiver

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Friday, 15 February 2019 05:37

California-headquartered Topcon Positioning Group has unveiled HiPer VR, the latest addition to its HiPer series of integrated receivers, aiming to provide a versatile solution with the most advanced GNSS technology...

Wacker’s new solutions will promote standardisation of construction paints

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Thursday, 14 February 2019 04:29

Germany-based international chemical company Wacker has announced to introduce its sustainable construction solutions project at the Middle East Coatings Show (MECS) from 26-28 February 2019 in Dubai, aiming to promote...

Etihad ESCO completes Hatta Solar retrofit project

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Thursday, 14 February 2019 03:34

With DEWA’s support, Etihad Energy Services Company (Etihad ESCO) has announced the successful completion of the Hatta solar retrofit project, which included installation of 7,756 PV solar panels over the...

Extending the durability of reinforced concrete with AkzoNobel’s Intercrete

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Wednesday, 13 February 2019 06:54

Chloride attack is one of the most important factors when considering the durability of reinforced concrete, especially for structures in water and wastewater and other chloride-laden environments. Chloride attack leads...

Siemens to maintain and digitalise Shuweihat project

Siemens to maintain and digitalise Shuwe…

Wednesday, 13 February 2019 04:49

Siemens has signed an extension of an 18-year maintenance service agreement with Shuweihat S2 Operation and Maintenance Company (S2O&M) to maintain and digitalise 1,500MW Shuweihat S2 independent water and power...

Averda wins 20-year waste recovery contract in Morocco

Averda wins 20-year waste recovery contr…

Tuesday, 12 February 2019 05:51

Averda has won a 20-year contract with Tangier city in Morocco for advanced waste treatment services

‘Oman’s industrial sector contributed US$14.54bn to GDP’

‘Oman’s industrial sector contributed US…

Tuesday, 12 February 2019 04:26

Oman’s industrial sector contributed US$14.54bn to the GDP in 2017, said Dr Ali bin Masoud Al Sunaidi, minister of commerce and industry

DEWA announces 98 per cent completion of M-Station project

DEWA announces 98 per cent completion of…

Monday, 11 February 2019 05:27

Dubai Electricity and Water Authority (DEWA) has completed 98 per cent of the M-Station expansion project, one of the leading power generation and water desalination plants in the UAE

Japanese energy firms to showcase innovations at 24th World Energy Congress

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Monday, 11 February 2019 04:37

The 24th World Energy Congress (WEC) will be held in Abu Dhabi from 9-12 September 2019, exploring new energy futures, critical innovation areas and new energy strategies across the globe

Niger SMEs to get Khalifa Fund support

Niger SMEs to get Khalifa Fund support

Thursday, 07 February 2019 06:39

Mahamadou Issoufou, President of Niger, met with Hussain Jasim Al Nowais, chairman of the UAE-based Khalifa Fund for Enterprise Development, in the Capital Niamey to discuss growing relations and strong...

UAE’s MOCCAE issues resolution on construction waste

UAE’s MOCCAE issues resolution on constr…

Thursday, 07 February 2019 06:30

The Ministry of Climate Change and Environment (MOCCAE) has issued the Ministerial Resolution No 21 of 2019 on the use of recycled aggregates from construction and demolition waste for road...

Bentley Systems announces OpenUtilities for grid modernisation

Bentley Systems announces OpenUtilities …

Wednesday, 06 February 2019 06:49

Bentley Systems has announced OpenUtilities solutions for distributed energy resources (DER) planning and design assessment in grid modernisation

Increasing focus on affordable housing in GCC

Increasing focus on affordable housing i…

Tuesday, 05 February 2019 06:50

GCC countries are strengthening their efforts to further enhance the accessibility to affordable housing for low- and middle-income households as part of government efforts to address rapid urbanisation and growing...

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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