Saudi sovereign wealth fund PIF (Public Investment Fund) has announced investments worth US $1.3bn in four leading local construction companies, via subscribing to their new shares and boosting the percentages owned by minority shareholders.

PIF said it has invested in: Nesma & Partners Contracting Company, ElSeif Engineering Contracting Company, AlBawani Holding Company, and Almabani General Contractors Company.

The investment will contribute not only to the construction services sector, but improve local supply chains for current and future projects in Saudi Arabia, thereby further developing the country’s construction ecosystem, it explained.

The four companies in which PIF has invested are said to have built a successful track record in executing and managing complex large-scale projects across multiple sectors in various regions of Saudi Arabia.

In late January 2023, PIF and Samsung C&T partnered to develop construction tech and modular housing and, in early February 2023, PIF & AeroFarms signed a deal to develop vertical farms across the MENA region.

The companies’ partnerships with PIF will support the regional and international expansion of their operations and businesses. Moreover, the investments will help increase private sector local content, contribute to growing Saudi Arabia’s gross domestic product (GDP), enhance supply chains and increase the construction services sector’s overall competitiveness, the statement from PIF added.

Leveraging its global reach, PIF said it will enable the four companies to develop regional and international partnerships, which will help increase the adoption of the latest technologies and the transfer of knowledge from global EPC (engineering, procurement, and construction) companies.

On the strategic move, Yazeed A. Al-Humied, Deputy Governor and Head of Mena Investments at PIF, said, “These partnerships demonstrate PIF’s commitment to unlock the capabilities of key strategic sectors in Saudi Arabia, including the Construction & Building Components and Services sector, which has been identified as one of 13 strategic sectors locally. PIF’s investment in four national champions will support local capacity expansion across the sector and stimulate private sector participation and investment to meet current and future demand, in line with Vision 2030.”

He concluded, “The Kingdom also aims to increase the role of the private sector within the economy, and this investment will enhance the ability of private sector firms to provide key services.”

In mid February 2023, PIF said it raised US $5.5bn with a second green bond.

The post PIF invests $1.3bn in Saudi construction firms appeared first on Middle East Construction News.

Source: ME Construction News

In December 2022, Desert Board by Al Talah Board Manufacturing Co, part of the ECC Group, was announced as the winner of the ‘Supplier of the Year Award’ at the 2022 Big Project Middle East Awards, which was hosted by Big Project Middle East (BPME) at the Ritz Carlton JBR in Dubai.

Following the win, BPME spoke to Desert Board for a reaction, and to gain an insight into what the company intends to do in 2023 to build on their gains from the previous year.

What does winning the Supplier of the Year Award mean to you?

It’s a great honour to win this award; we launched Desert Board in 2022, and it is becoming more and more evident that our global environment depends on us – as a human race – to be more aware of what the earth offers us for us to survive.

As with our ancestors, particularly in this part of the world, we’ve relied on Date Palm trees to build cities and houses. We must continue this knowledge and development to grow and survive as a truly economical and ecologically sustainable civilisation.

How has 2022 gone for your company, and what are your expectations for 2023?

The global and regional markets are realising the importance of the health of our global environment. This is further emphasised by the COP27 summit which was held in Egypt in 2022, and by COP28 that is due to be held in the UAE this year.

Through COP27, we’ve seen that the world, and government bodies, are accepting that there has to be a reduction in emissions. Many of these emissions are generated by building and using raw materials. Our boards are classified as E0, meaning that when they are used in buildings, they meet the global requirements for zero formaldehyde emissions.

From the years of research and development that we have conducted, we are sure that here in the UAE, we will be able to contribute to the global agenda of reducing our emissions, contributing to a Net Carbon Zero economy, while sustaining a circular economy through Desert Board.

How is Desert Board positioning itself for success in 2023 – what are the company’s strategies and plans for the year ahead?

As our founding partners of Desert Board envisaged, the company’s sustainability values will continue to develop in tandem with the requirements of the markets that our products serve, both regionally and internationally.

Lumber is integral to construction, so to be able to supply this sustainably and locally – from one of the most arid regions in the world – is a testament to the ability and creativity of humanity and the region.

2023 is a year full of opportunity, not least due to the COP events that are being held in the Middle East, but also due to the opportunities that the region can showcase to the world, about how important it is in being able to contribute to our global climatic equilibrium, while still enabling human, social, environmental and economic prosperity.

Not only is the PSB Board that is being produced at Desert Board one of the most environmentally sustainable boards in the world, but it is also able to allow the industry to continue developing in an environmentally, social, and economical manner, while also meeting the criteria and aspirations of a net zero and circular economy.

What are your expectations for the future of the industry – particularly in your sector?

It is becoming increasingly evident that our climate is changing and becoming more extreme. The more we look at this, the more we can conclude that this is due to our activities and actions. For many years we have felled forests and reduced nature’s ability to capture the carbon and gases emitted into the atmosphere due to our efforts and needs. Many global and governmental action groups call for us to act as a community, and the global construction industry is a massive contributor to global carbon emissions.

Therefore, through the continued work that is being done at Desert Board, we are sure that we will be an integral part of enabling the industry – regionally and globally – to achieve a Net Zero circular economy and allow humanity to prosper socially and environmentally.

Read more:

• “COP28 has the potential to have a significant impact on the built environment in the region”
• Sheikh Mohamed bin Zayed Al Nahyan announces 2023 as the ‘Year of Sustainability’
• 2023 Energy & Sustainability Summit to take place in Dubai on 3 May

The post Desert Board to help regional construction sector achieve Net Zero and sustainability goals appeared first on Middle East Construction News.

Source: ME Construction News

Dubai Electricity and Water Authority (DEWA) and ENOC have signed a memorandum of understanding (MoU) to conduct a feasibility study for the establishment, development, and operation of a joint pilot project on the use of hydrogen in mobility.

In a statement, the companies said the MoU was signed at the World Government Summit 2023, in the presence of HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy, Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure, Omar bin Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA, and Saif Humaid Al Falasi, CEO of ENOC Group.

The project will utilise DEWA’s existing green hydrogen production facility and ENOC’s knowledge of the fuel market to build a hydrogen fuelling station and contribute to the Dubai Green Mobility Initiative 2030.

Al Tayer said, “DEWA and ENOC Group have a strategic partnership that supports the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to promote as a global model in sustainability and green transformation.

In early January 2023, DEWA said it had achieved the highest information security certification and, in early February 2023, DEWA said it spent US $871mn on new projects in 2022.

“We are pleased to sign this MoU with ENOC Group to use green hydrogen, which is one of the environment friendly energy sources and represents one of the pillars of a sustainable future that depends on accelerating the transition to Net Zero carbon emissions to achieve the Dubai Clean Energy Strategy 2050 and Dubai Net Zero Carbon Strategy 2050.”

The project supports the UAE’s hosting of the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change and the country’s goal to develop the hydrogen economy and open local markets to hydrogen vehicles. Both DEWA and ENOC aim to support the vision of a sustainable and green future and to achieve Net Zero carbon emissions by 2050.

Al Falasi remarked, “ENOC Group’s partnership with DEWA follows the announcement of 2023 as the ‘Year of Sustainability’ by President His Highness Sheikh Mohamed bin Zayed Al Nahyan. It also aligns with the Dubai Economic Agenda ‘D33’ that was announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum.”

He concluded, “The agreement underpins the group’s efforts to nurture public-private partnerships to achieve Dubai’s Clean Energy Strategy 2050 as well as lay the foundation for a green economy and lead the adoption of sustainable energy solutions.”

On 3 May, Big Project Middle East will host the second edition of the Energy & Sustainability Summit in Dubai.

The post DEWA and ENOC sign MoU to develop and operate hydrogen-based mobility pilot project appeared first on Middle East Construction News.

Source: ME Construction News

Hilal Itani has re-joined HKA as a Director based in Saudi Arabia, the global consultancy has announced.

Itani is said to have over 23 years of wide-ranging experience in forensic delay analysis, claims preparation and management, with alternative dispute resolution experience. He holds dual Master’s Degrees in Engineering Management, Construction Law, and Arbitration. He is also a certified RICS expert witness, planning and scheduling professional, and a member of the Chartered Institute of Arbitrators, the firm stated.

“We are delighted to welcome Hilal back to HKA as Director. His demonstrable track record in construction and engineering and his knowledge, insights, and expertise from working on major projects in the region will add significant value as we continue to grow our presence and enhance our service offering in KSA,” said Husam Gawish, Partner & Head of KSA Operations.

In late April 2022, Mahmoud Abougabal joined HKA’s Expert Services Team as Director and, in late September 2022, Crispin Cockman rejoined HKA as a Director.

Discussing its experience in the Kingdom, HKA said it has worked on complex projects across multiple sectors including buildings, hotels and tourism, power and utilities, oil and gas, mixed used developments, sports and leisure and transportation infrastructure.

Following the announcement of Husam Gawish as Head of KSA Operations, HKA has significantly strengthened its highly skilled, professional, and dedicated team of consultants in the Kingdom to expand the firm’s presence in the region and continue to deliver increased value to its clients, the firm said in a statement.

“I am excited to return to HKA to work alongside a strong three-partner team led by Husam Gawish, Partner and Head of KSA Operations. I am looking forward to playing a meaningful and impactful role in the firm’s continued growth journey in the region and to consistently provide clients with a best-in-class service,” Itani concluded.

In early December 2022, HKA formed a new EMEA region and appointed Amanda Clack as Regional CEO.

The post HKA grows its Saudi team with the appointment of Hilal Itani appeared first on Middle East Construction News.

Source: ME Construction News

JLL has appointed Larry Baker as the Director of Data Centre Solutions, Project & Development Services Middle East & Africa. Based in Dubai, Baker will lead and develop JLL’s data centre projects across the region.

According to the firm, Baker has over 30 years of experience delivering data centre and mission-critical facilities around the globe. His track record is said to include Tier 3 and Tier 4 hyper-scale and colocation data centre projects across their entire lifecycle from concept to operations.

Data is a critical asset for any organisation today; with a growing reliance on technology platforms and cloud-based storage over the last few years, the need for dependable, efficient, and sustainable data centres has never been greater, JLL said.

In early September 2022, Khazna Data Centres and BEEAH Digital said they would bring the first Tier 3 data centre to Sharjah and, in early January 2023, the Digital DEWA subsidiary launched the first AI-driven cyber security system.

“As we scale up efforts to strengthen our specialist data centre capability in the region, we are confident that Larry’s extensive experience and in-depth market knowledge make him an asset in our business. Larry’s team will bring a bespoke offering to our clients as we re-look at how data centres are delivered from sustainability, health and safety through to resilience planning to ensure the best value for our clients,” said Ben Jackson, Head of Project & Development Services for the Middle East & Africa at JLL.

Baker’s appointment will help JLL address the upsurge in demand for specialist data centre projects and development services in the Middle East and Africa (MEA), while aligning with its global data centre client’s local requirements, the statement explained.

“I am delighted to join JLL at such an exciting time where the data centre markets in the Middle East and Africa have become one of the fastest data usage regions in the world. I look forward to delivering outstanding results to our clients and cementing JLL’s position as the leading data centre delivery partner in the Middle East and Africa,” concluded Baker.

In early February 2023, it was announced that DAMAC Data Centres’ KSA facilities would go live before the end of 2023.

The post JLL appoints Larry Baker to develop data centre business in the MEA region appeared first on Middle East Construction News.

Source: ME Construction News

The real estate markets of Dubai and Saudi Arabia are poised for further growth in 2023, mainly driven by the spurt in residential sales across both countries, according to Deloitte.

In its ninth annual ‘Middle East Real Estate Predictions 2023’ report, Deloitte provides a positive outlook for the next 12 months and investigates a range of real estate segments, including hospitality, residential, retail, commercial office space and industrial.

Among the main findings, the report reveals the recovery post-COVID-19 of tourism in both Dubai and Saudi Arabia, with the key indicators within the hospitality sector being the increase over the past year in occupancy and average daily rates (ADR). It also highlights the growth in residential sales across both geographies, as well as the rise in rent prices of commercial office space in Dubai.

According to Deloitte, the significant growth of KSA’s gross domestic product is making it among the most attractive global destinations for investors. Moreover, employment forecasts from Oxford Economics indicate the financial and business services segment registered a year-on-year growth in Saudi Arabia of 12%.

In early January 2023, Realiste predicted that the Dubai real estate boom would continue in 2023.

Stefan Burch, Partner and Head of Real Estate at Deloitte Middle East said, “As global economies fully re-open post pandemic, we predict continued growth in the Saudi real estate market throughout 2023. Growth is set to be driven by robust spending across a wide range of government initiatives as well as a strong private sector that is responding to pent up levels of demand for good quality real estate projects. While 2022 saw record levels of demand for commercial office space, 2023 looks set to be dominated by the delivery of high quality residential-led mixed use schemes and a continued focus on tourism, leisure and entertainment projects.”

On Dubai’s real estate performance, Deloitte said the pent-up demand from travellers and increased spending by residents had led the post-pandemic recovery of the emirate’s real estate sector.

Oliver Morgan, Partner and Head of Development in Deloitte’s Real Estate team in the Middle East said that 2022 had been a prosperous year for residential investors who had a tough time looking back at more recent trends in Dubai. He commented, “In Saudi Arabia, there continues to be excess demand across all residential sectors with more volume housebuilders competing for market share and to differentiate their product.”

According to Morgan, the year to date (YTD) November 2022 occupancy for Dubai averaged 72% compared to 63% for the same period in 2021, while the average ADR over this period has increased by 22% year-on-year to $183. This is higher than the majority of the regional and international markets, he added.

In early January 2023, Investcorp said that it would invest $1bn into the GCC real estate market in five years.

Meanwhile, the average sales prices for residential properties in Dubai increased by approximately 10% between 2021 and 2022. Average rents also increased by approximately 21% over the same period. On the commercial front, office rents have recovered to pre-pandemic levels, registering an increase of 12% YTD September 2022 over the same period last year.

In early January 2023, JLL said that the global realty investment boom would be led by the GCC.

The post Real estate outlook positive in Dubai and Saudi Arabia appeared first on Middle East Construction News.

Source: ME Construction News

Gulf Contracting has been awarded the main contract for the construction of the second phase of the Marbella Villas project by RAK Properties.

The residential project is taking shape on Hayat island in the Mina Al Arab area of Ras Al Khaimah, and is in close proximity to the Anantara Mina Al Arab Ras Al Khaimah Resort.

“We are extremely pleased to announce the award of the construction contract for Phase Two of Marbella Villas to Gulf Contracting. The Phase One villas sell-out has paved the way for this exciting next phase which we will be launching shortly,” said RAK Properties’ CEO Sameh Al Muhtadi.

In early February 2022, RAK Properties launched its Gateway Residences 2 residential project and, in early November 2022, the developer said it had tracked buoyant results in Q3 2022.

According to RAK Properties, Phase Two of Marbella Villas will feature a total of 89 residences with a mix of two-, three- and four-bedroom luxury villas and townhouses with direct access to the beach.

The bustling island community offers natural views of the Arabian Gulf and Hajar mountains and is home to a range of amenities designed to help visitors and residents relax and unwind, including the InterContinental Ras Al Khaimah Mina Al Arab Resort & Spa, Marbella resident’s club, community park, waterfront promenade, seafront dining and retail, and scenic cycle and pedestrian paths, the statement from RAK Properties noted.

Established in 2005, RAK Properties has successfully developed over 3,000 residential units, 372,000sqft of office space and 260,000sqft of retail in the emirate, Al Muhtadi concluded.

In late November 2022, RAK Properties broke ground at its Bay Residences residential project.

The post RAK Properties awards main contract for residential project to Gulf Contracting appeared first on Middle East Construction News.

Source: ME Construction News

The Saudi Ministry of Culture’s Jeddah Historical District Program (JHD) has announced the launch of its Jeddah Historic District’s Waterfront Project, which is part of the larger Jeddah Historical Rejuvenation Project that began in September 2021.

In a statement, HH Prince Badr bin Abdullah bin Mohammed bin Farhan Al Saud, the Minister of Culture, said that the two-year project will reconnect the Red Sea with Al Balad – downtown Jeddah’s popular moniker – and vitalise the historic Al Bunt Port.

The redeveloped waterfront will be constructed in line with high and sustainable standards, and feature cultural, historical, and environmental themes from across Al Balad, the minister detailed.

He added that the project is a concentrated effort to platform the Al Balad area as a world-class tourist and cultural destination, a goal that is part of Vision 2030’s objective of building a dynamic economy for an ambitious nation.

In early September 2022, Lifestyle Developers said it had begun construction work on the Vue in Jeddah, KSA and, in late November 2022, Sarens said it had deployed a 750t crawler crane for lifting operation at Four Season hotel in Jeddah.

During the project’s First Phase, sections of the waterfront that had previously been filled decades prior to accommodate the city’s urban expansion will be carved out once more. In Phase Two, Lake Al Arbaeen’s water will be treated and purified, leading up to the final phase, Phase Three, which will include building a marina for luxury yachts, open green spaces, pedestrian overpasses and public utilities to round off Al Balad’s sustainable urban structure.

The Jeddah Historical Rejuvenation Project aims to leverage the area’s heritage and distinct cultural elements to power the local economy, while redeveloping the urban space into an ideal place to live, work and create.

Once completed, the project will highlight Al Balad’s historic landmarks and enhance their presence within a refined, environmentally-friendly urban ecosystem complete with natural greenery and vibrant waterfronts, the statement concluded.

In early December 2022, SMC announced changes to the Jeddah Corniche Circuit ahead of March F1 race.

The post Jeddah Historic District’s Waterfront Project launched appeared first on Middle East Construction News.

Source: ME Construction News

The impact of COP28 on the regional construction industry, green hydrogen, and developing the GCC as a global hub for clean energy will be among the key themes at Big Project Middle East’s (BPME) 2023 Energy & Sustainability (E&S) Summit. The second edition of the annual event will take place on 3 May in Dubai, and will offer key insights from government and industry bodies, as well as green energy, construction and technology firms.

The E&S Summit is free to attend for industry professionals, and will comprise several panel discussions, presentations, and focused fireside chats from high profile regional personalities including key decisionmakers, while also offering highly value networking and sponsorship opportunities.

The first edition of the summit took place on 21 June in Dubai at St Regis – The Palm, in response to a pronounced GCC-wide drive towards green energy and sustainable development. The event saw participation from several regional organisations including the Emirates Green Building Council, The Red Sea Development Company, ECC and Saif Air Tech – A Fakhruddin Holding Company, and many others. Check out the event’s image gallery here.

“The 2022 Energy & Sustainability Summit was a tremendous success, and we look forward to building on that event with the 2023 edition, as the Middle East continues its push towards clean energy and sustainable development. While much has already been said and done around these topics, there’s still a long road ahead, which is why we are eager for the 2023 E&S Summit to become a nexus of discussions and a driver of change,” said Jason Saundalkar, Head of Content at Middle East Construction News (MECN).

Clean energy and sustainable development feature heavily amongst GCC nations’ respective national agendas. Earlier this year, UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan announced 2023 as the ‘Year of Sustainability’.

Prior to this, it was announced that the 2023 UN Climate Change Conference (UNFCCC COP 28) would take place in Dubai, in the UAE, from 30 November to 12 December 2023. With the EXPO 2020 Dubai mega-event, sustainability was also a key topic, with the event organiser announcing that 121 buildings were LEED certified at the mega event.

To discuss participating at the event as a speaker, contact Jason Saundalkar on Jason.s@cpitrademedia.com, while sponsorship inquires can be addressed to Raed Kaedbey (raed.kaedbey@cpitrademedia.com) or Madeleine Martin (madeleine.martin@cpitrademedia.com).

To find out more about the E&S Summit, click here.

The post 2023 Energy & Sustainability Summit to take place in Dubai on 3 May appeared first on Middle East Construction News.

Source: ME Construction News

Saudi Arabia’s Public Investment Fund (PIF) has completed its second green bond issuance, which raised US $5.5bn to finance or refinance its green investments, in alignment with its Green Finance Framework. The move will further diversify PIF’s sources of debt funding, in line with its Medium-Term Capital Raising strategy, PIF stated.

According to a statement, the issuance follows its inaugural green bond in October 2022, which was said to be the first-ever green bond issued by a sovereign wealth fund, and the first-ever 100-year green bond.

The latest bond issuance was said to have been more than six times oversubscribed, with books exceeding $33bn. It was issued in three tranches, comprising: $1.75bn for seven years; $2bn for 12 and $1.75bn for 30 years. The bond was sold to a wide range of institutional investors globally, including Asia.

“Our second green bond issuance underlines the role that PIF is playing in supporting Saudi Arabia’s green agenda, as well as diversifying the local economy and unlocking new and sustainable sectors,” said Fahad AlSaif, Head of Global Capital Finance Division at PIF.

In late January 2023, PIF and Samsung C&T said they would jointly develop construction tech and modular housing solutions.

The issuance is said to reflect PIF’s role as the driver of economic transformation in Saudi Arabia and as one of the largest and most impactful investment funds in the world, in addition to demonstrating its commitment to its green finance framework.

According to PIF, its Green Finance Framework was built in line with best market practice, and is fully compliant with the International Capital Market Association’s Green Bond Principles 2021, and the Loan Market Association’s Green Loan Principles 2021.

AlSaif remarked, “Strong demand from international institutional investors for this second issuance is a testament to the ongoing success of PIF’s capital raising strategy, its credit profile and financial strength.”

As with its inaugural bond issuance, PIF said it will allocate an amount equal to the net proceeds of the issuance to fund eligible green projects in accordance with its Green Finance Framework.

In late January 2023, AlUla Development Company launched operations to support the development of AlUla.

These include projects in the space of renewable energy, energy efficiency, sustainable water management, pollution prevention and control, green buildings, and clean transportation, AlSaif concluded.

In early February 2023, PIF & AeroFarms signed a deal to develop vertical farms across the MENA region.

The post PIF raises US $5.5bn with second green bond appeared first on Middle East Construction News.

Source: ME Construction News