Arada, the Sharjah-based master developer, has said that it has awarded two major contracts together totalling US$255.6 million to build 986 new homes across two residential districts at Masaar, Sharjah’s woodland megaproject.

Valued at US$2.17 billion and containing 4,000 homes spread over seven gated districts, Masaar features a nature-inspired master plan containing more than 50,000 trees. The first contract is valued at $109.1 million and will covert the construction of 421 villas and townhouses in Masaar’s second residential phase, Kaya.

It was won by Pivot Engineering & General Contracting, an Abu Dhabi-based firm with more than 44 years’ experience in the local market. Construction on Kaya will begin immediately and is scheduled to take 18 months, the developer said.

Valued at $146.4 million, the contract to build 565 villas and townhouses in Robinia, Masaar’s third residential phase, was awarded to Intermass, a well-established Sharjah-based contractor that is already at work on the Masaar jobsite building part of the first residential phase, Sendian.

Intermass has also worked with Arada on two of its other projects, Nasma Residences and Aljada. Construction on Robinia will begin immediately and is scheduled to take 17 months.

Ahmed Alkhoshaibi, Group CEO of Arada, said: “These two awards signal our determination to push forward rapidly with construction at Masaar, where we are seeing sales demand accelerate thanks to very favourable customer sentiment about the newly opened central entertainment zone and show villa at the community, which provide an opportunity for buyers to truly appreciate what the Masaar lifestyle is all about.

“Thanks to the recent decision to allow freehold ownership for all nationalities in Sharjah, we are seeing buyer interest at Masaar accelerate significantly. The master development as a whole is now more than a third sold out and we’re bringing forward new phase launches in order to keep up with demand.”

The award means that 1,416 homes are now under construction at Masaar, where the first phase is scheduled to be completed by June 2023.

Sales for Masaar’s fourth phase, Azalea, began earlier in November with an expected delivery of end -2024. Azalea consists of 566 homes ranging from two-bedroom townhouses to six-bedroom villas.

Masaar was officially inaugurated in September by HH Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah. The community is anchored by the Masaar Discovery Centre, which now open to the public and surrounded by family attractions and entertainment amenities including a children’s adventure playground and waterplay area, an outdoor amphitheatre and a skate park, alongside the second location of the popular Zad food truck park.

Also open to the public is the community’s first completed home, the Masaar show villa, which can be reached via a forested walkway.

The community is located in the up-and-coming Suyoh district, close to Tilal City, the Sharjah Mosque and Arada’s first project, Nasma Residences. The community has easy access to Emirates Road and Mleiha Road, and is 15 minutes’ drive from Sharjah International Airport, and 20 minutes’ drive from Dubai International Airport.

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Source: ME Construction News

The Luxe Developers has held what it describes as a private but lavish pre-launch ceremony for its flagship residential project in Ras Al Khaimah.

A recent entrant into the luxury tier of the UAE property market, The Luxe Developers used the event to give attendees  a first glimpse of the ‘ultra-luxury’ residential project located on Al Marjan Island.

With the CEO of Al Marjan, Abdulla Al Abdouli present, co-owners Shubam Aggarwal and Siddharta Banerji, said the development will be synonymous with providing the ‘very best’ in craftsmanship, and will take understated luxury to a ‘new level’.

The flagship project is situated just opposite the Wynn resorts development and investors will be offered their own private beach and a private jetty to dock their summer yachts.

According to The Luxe Developers, the projects features: “An exterior well beyond one’s imagination. The Luxe Developers are redefining what was thought to be possible in functional architecture, with an exterior filled with elegant asymmetric lines and a mesmerizing entrance that warmly welcomes all our residents and visitors. The interiors are just as futuristic by reimagining, redefining, and revolutionizing opulence, and seamlessly integrating smart technology throughout. The Luxe Developers aims to provide the perfect balance for comfortable living and an elevated lifestyle.

“We conceptualized The Luxe Developers with an aim to deliver distinctiveness with every project that we undertake. Every investor that is involved with The Luxe Developers will experience an elevated lifestyle that reimagines living in luxury.

“Our ethos is creating lifestyles where luxury, comfort and craftsmanship meet excellence.”

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Source: ME Construction News

Demand for prime residential ski property has remained undeterred despite the impact of the pandemic on international travel.  Across the 46 resorts tracked by Savills, prime residential asking prices grew, on average, by more than 20% in the last year and by over 30% since 2020.

Aspen and Vail take the top place in the Savills Ski Prime Index, with average asking prices reaching €38,500 and €37,900, respectively.

Verbier has climbed three places and is the most expensive prime Alpine resort, with an average asking price of €27,800 per square meter. Thanks to its dual-season appeal and international schools, Verbier attracts a diverse buyer base. A lack of stock and an increase in remote working are contributing to price growth.

Top 20 prime ski resorts

Source: Savills Research
Note: Based on properties with asking prices greater than €750,000 with exchange rate as at September 2022.
*Includes Le Praz, Courchevel 1550 and 1650

Demand from affluent Middle East buyers is growing, according to Savills, with many countries in the region whose currencies are pegged to the USD especially benefiting from the currency appreciation.

Guy Murdoch, French Alps Manager of Savills Ski said: “We are seeing more Middle Eastern buyers in our markets. Potential buyers from this region tend to prefer chalets in more discreet locations within prime resorts, and usually, the preference is for brand-new properties, rather than from the secondary market. Interestingly, this is not always due to the financial incentives in place for new build properties in France, however more on account of personal taste. Resorts, where there are various non-skiing activities on offer (spas, swimming pools, luxury shops etc.), are most popular, such as Megève and Courchevel 1850. Switzerland is also alluring to Middle Eastern buyers, but it is more difficult to find the right product due to purchasing restrictions for non-Swiss residents.”

Executive sNOwMADs: The Winter Executive Nomad

The Savills study also ranked 20 global resorts for their appeal to executive ‘sNOwMADS’, winter executive nomads looking for semi-permanent bases during the winter months. The resorts have been ranked on their connectivity and ease of access, resilience to climate change, the prime residential market, and quality of life.

Whistler Blackcomb in Canada tops the table of the best ski resorts for an executive ‘snowmad’. Offering 8,000 acres of terrain for winter sports enthusiasts, plentiful snow, a year-round vibrant village, attractive prime property prices, and close proximity to Vancouver, British Columbia’s most famous resort is the ideal retreat for footloose executives. Zermatt, in Switzerland, ranks second, driven by its dual-season appeal and good connectivity. The resort of Val Gardena takes third place – this Italian resort is the closest of all 20 resorts to a large city and international airport.

Savills Ski agents report that just over 90% of chalet owners are staying for longer periods of time post the pandemic, and 60% of owners are now working remotely from their ski residence.

Commenting on the outlook, Jeremy Rollason, head of Savills Ski, said, “Despite limited stock, we anticipate that double-digit price growth is unlikely to continue into 2023, with growth more likely to plateau in certain locations. At the very top end of the market, where purchasers are more reliant upon equity and less dependent upon debt, as well as being a safe haven for capital, the impact of tightening monetary policy is likely to remain limited.”

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Source: ME Construction News

Dubai-based contractor, ALEC Engineering & Contracting – part of the Investment Corporation of Dubai – recently announced that it had signed a share purchase agreement to acquire TARGET Engineering Construction Company, the oil and gas EPC contractor that was formerly part of Arabtec.

The agreement will see ALEC acquire 100% of TARGET, enhancing its resources significantly through the latter’s 11,000-strong workforce, marine vessels, and fabrication facilities. In addition, the deal includes TARGET’s controlling stake in IDROTEC srl, the Italian specialised marine design engineering firm.

With the acquisition set to have a significant impact on the future and performance of both entities, Big Project ME caught up with Kez Taylor, CEO of ALEC, for insights into the thinking behind the deal, and the significance of it in terms of both companies’ strategy.

“We saw a great opportunity. TARGET have a very good reputation, a very good name in the oil and gas, and marine engineering sectors,” he told Big Project ME in an exclusive interview. “We also saw great potential in the clean energy sector, and in the transition from carbon to clean energy. They’re a very good fit for ALEC in terms of diversification.”

At around US$100 million, the acquisition is the biggest ALEC has made, Taylor stated, adding that TARGET’s performance will make up around 30% of future turnover targets. Together, the companies will have a joint turnover of nearly US$2 billion, although TARGET will continue to operate as an independent entity.

“TARGET will be run by the management that are within that business. We’ll look at synergies between the two companies, obviously to improve things both ways, but it will be a separate business reporting to ALEC,” he adds, while also explaining that the acquisition was financed partly out of debt, with the remainder coming from the capital ALEC has put in.

“It’s a good deal for us. Over the next five years, we see both ALEC and TARGET doubling in size over the next five years. Both businesses are going through a significant growth phase, and there’s a lot of work around, for us, at the moment between Saudi Arabia and the UAE, in particular. There’s going to be significant investment in the oil and gas, marine, and future energy businesses,” he said.

With the regional emphasis on diversifying the energy mix, Taylor pointed out that both Saudi Arabia and the UAE have committed to Net Zero Carbon by 2050. In order for that to happen, there needs to be significant investment over the next 30 years, which will lead to significant opportunities, he added.

However, for the immediate future, the plan is for TARGET to continue operating independently and as normal, particularly given its strong pipeline of ongoing and upcoming projects.

The company’s customer base is comprised of leading Oil & Gas companies, major EPC (Engineering, procurement, and construction) contractors, government entities and property developers. Amongst the noteworthy projects that it has successfully completed include work on ENEC’s Barakah Nuclear Power Plant, ADNOC Gas Processing’s Ruwais LNG Terminal, Saudi Aramco’s Abqiq plant, and ENOC’s Jebal Ali Refinery expansion.

Its portfolio also includes current active projects such as Borouge 4 and Delma B in joint venture for ADNOC, and IGDC for ADGAS.

“We’re going to allow them to operate, but we’ll look at wherever we can innovate and improve, and we’ll do that – on both sides of the business.

“If you look at it, while they are two different businesses, there are a lot of common elements. So, what I think we’ll do is look at who’s best in class, whatever the sector, and then look at synergising those common elements moving into the future.”

Finally, Taylor stated that with the acquisition now completed, he tells Big Project ME that the company’s focus in the immediate future will be on the growth phase for both businesses.

With ALEC bringing a strong financial position, world-class project execution capabilities, and leadership to the table, TARGET will be able to develop its growth plans for Middle East and deliver best-in-breed EPC and specialist marine services to a wide range of entities.

“What we’re looking at doing is consolidating over the next period. We are not necessarily looking at going on an acquisition drive. We’ve made this move, we’ve invested a lot in it, and on other things such as LINQ, and what we’ve really got to do over the next period is make it work.”

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Source: ME Construction News

Emirates Global Aluminium, the largest industry company in the United Arab Emirates outside of oil and gas, has agreed to supply CelestiAL solar aluminium to Kobe Steel to make automotive body sheet for Nissan.

The agreement with Kobe Steel will see the supply of EGA’s CelestiAL solar aluminium to one of the largest rolling mills in Japan. Automotive body sheet is used by the giant Japanese automaker to form vehicle body panels such as doors and bonnets.

EGA currently supplies thousands of tonnes of aluminium to Kobe Steel every year, in a business relationship that stretches back more than 25 years.

Abdulnasser Bin Kalban, Chief Executive Officer of EGA, said: “EGA was the first company in the world to make aluminium using solar power, and we are proud that our CelestiAL metal will now be used in Nissan vehicles through Kobe Steel, as well as those of other leading global car companies. We look forward to increasing our production of CelestiAL over the years ahead, contributing to the decarbonisation of EGA and of end user industries including auto manufacturing. I thank Kobe Steel for their continuing trust in EGA and our metal.”

In 2021, EGA became the first company in the world to produce aluminium commercially using solar power through a partnership with Dubai Electricity and Water Authority, which operates the Mohammed bin Rashid Al Maktoum Solar Park in the desert outside Dubai.

EGA expects to vastly increase its production of CelestiAL through an initiative with Abu Dhabi National Energy Company PJSC (TAQA), Dubal Holding and Emirates Water and Electricity Company (EWEC) to divest its electricity generation assets and instead source power from the grid, including an increasing proportion of clean energy.

The new steady power demand from EGA would increase the predictability of the overall power system, and advance EWEC’s development of new solar energy projects. The scale of the expansion is expected to be greater than the current total installed solar generation capacity in the UAE and EGA would utilise this additional solar power once it is developed.

The use of solar power in producing EGA’s CelestiAL solar aluminium significantly reduces the emissions associated with aluminium smelting and provides an opportunity for end users to reduce their Scope 3 emissions.

The deal with Kobe Steel follows CelestiAL supply agreements with BMW Group and Mercedes-Benz parts-maker Hammerer Aluminum Industries.

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Source: ME Construction News

Real estate transactions in the Emirate of Sharjah during November increased to AED2.7bn ($735m), compared to AED1.9bn the previous month.

A total of 2,813 real estate transactions were carried out during the period, and 650 were sale transactions, accounting for 23.1 per cent, according to the latest report issued by the Sharjah Real Estate Registration Department (SRERD).

Mortgage transactions increased to 322, comprising 11.4 per cent of the total transactions – amounting to AED921m, with the remaining 1,841 transactions distributed over other real estate transactions, representing 65.5 per cent.

The report revealed that real estate market sales covered a total area of 13.3 million sq ft, distributed over 99 locations in various cities of Sharjah. Types of real estate traded included residential, commercial, industrial, and agricultural.

Transactions involving subdivided towers totalled 265 and accounted for 40.8 per cent of the total sale transactions. Vacant land transactions reached 194, representing 29.8 per cent of the total, while 191 transactions were attributed to the built-up land sector, equating to 29.4 per cent.

The report showed that during November, the real estate market focused on the Muwailih Commercial area of Sharjah with 151 transactions, followed by Hoshi and Al Khan areas with 71 transactions each, and then Al Majaz 3 with 48.

Muwailih Commercial also led in terms of monetary value for real estate transactions with a total of AED193.9m, followed by the Al Majaz 3 area with AED80.1m. Meanwhile, the Al Khan area recorded AED73.4m in transactions, while further sales transactions in the station area totalled AED55m.

In the central region of the Emirate of Sharjah, deals focused on the Al Blelaida region with seven transactions and a trading value of AED79.3m. Al Taiba 1 region recorded five transactions, totalling AED5.6m, and then the Seh Al Sadah region recorded four transactions with a total of AED2.8m

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Source: ME Construction News

Dubai saw a total of 2,882 real estate transactions worth over AED 9.2bn ($2.5bn) during the week ending 16^th December 2022, according to figures released by the Dubai Land Department (DLD).

The DLD report revealed that 199 plots were sold for AED1.33bn, while 2,011 apartments and villas were purchased for AED4.61bn.

The top three transactions were a land plot in Palm Deira sold for AED47.38m, followed by a land plot sold for AED40m in Me’Aisem First, and another sold for AED47.38m in Palm Deira.

Al Hebiah Fifth recorded the most transactions for this week, with 92 sales transactions worth AED244.61m, followed by Jabal Ali First with 21 transactions worth AED147.11m, and Al Hebiah Fourth with 15 transactions worth AED290m.

Meanwhile, the top three transfers for apartments and villas were an AED80m apartment, an AED61m apartment, and an AED59m apartment, all located in Palm Jumeirah.

The value of mortgaged properties for the week landed at AED2bn, with the highest being a land plot in Al Qusais Industrial First, mortgaged for AED693m. Meanwhile,157 properties were granted between first-degree relatives worth AED1bn.

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Source: ME Construction News

TECOM Group has announced that it has broken ground on the Innovation Hub Phase 2 in Dubai Internet City, a US$120.3 million investment that will offer customers high-quality commercial office properties, state-of-the-art office spaces, and headquarters tailored to customer specifications.

In a statement TECOM said that as Dubai’s legislative framework and ease of doing business is attracting a high volume of international companies and investors. As such, the group is expanding its leasing portfolio to capture increasing demand in Dubai’s commercial real estate market, underpinned by the emirate’s economic development and the government’s pro-growth strategies.

Abdulla Belhoul, Chief Executive Officer of TECOM Group, said: “TECOM Group remains a pillar for Dubai’s business hub proposition. New regulatory frameworks and the ease of doing business are accelerating economic growth and reinforcing investor and business confidence. We’re seeing the success of our leadership’s economic diversification strategy reflected in our commercial and industrial real estate portfolio performance this year due to an influx of new companies and talent.

“Across our portfolio, existing customers are expanding their operations, complemented by an inflow of new foreign investment. Bespoke solutions like the Innovation Hub address the need for high-quality commercial spaces, helping strengthen Dubai’s position as an attractive global business and talent hub. It also cements TECOM Group as the emirate’s largest commercial real estate owner and our key role in driving innovation and business growth development in Dubai.”

The Innovation Hub Phase 2 expands TECOM Group’s assets with two high-end office buildings, four boutique offices, retail spaces and more than 800 parking spaces. To be completed by 2024, the Innovation Hub Phase 2 will provide more than 355,000 square feet of gross leasable area (GLA).

Launched in 2018, the first phase of the Innovation Hub is almost at full capacity, providing tech giants like Google, Hewlett-Packard, Gartner, and China Telecom a base in the region. With additional stages in the pipeline, the completed Innovation Hub project is expected to add more than 1.2 million square feet of space for technology, education, and new media businesses of all sizes to the Group’s portfolio.

TECOM Group represents a complete community of Fortune 500 companies, SMEs, start-ups and entrepreneurs. Recent additions include Motorola Solutions and Intel, while longstanding customers 3M, Visa and Meta upgraded to new headquarters this past year. Dubai Internet City also features over 15 innovation centres powered by customers like Visa, MasterCard, SAP, Google, and 3M, which are promoting digital transformation region-wide.

Commenting on behalf of Dubai Internet City, Ammar Al Malik, Executive Vice President – Commercial Leasing, TECOM Group PJSC, said: “Dubai’s pursuit of a knowledge and innovation economy relies on a robust technology framework. For more than 20 years, Dubai Internet City has provided the necessary infrastructure and environment where the complete tech community can converge. Ready-to-use facilities like our Innovation Hub enable customers to hit the ground running. Expanding our district’s commercial offering to cater to the Emirate’s growing business appetite will enrich our global community with innovation-driven brands and talent.”

TECOM Group’s Q3 2022 financial performance reflected the upward trend in the commercial real estate market. Revenue came in at US$133.4 million, increasing 12.48% year on year (YoY), driven by rising occupancy levels across the portfolio, especially office, warehouse, and worker accommodation.

According to the CORE Dubai Market Report Q3 2022, the Emirate is seeing growth in new licenses and residents, boosting demand in the commercial leasing sector. The report also found that citywide office occupancy levels are the highest since the peak in 2014, up to 83% in Q3 compared to 78% last year.

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Source: ME Construction News

ALEC Engineering and Contracting, part of the Investment Corporation of Dubai (ICD), has announced that it has signed a share purchase agreement to acquire TARGET Engineering Construction Company.

In a statement, ALEC said that the agreement will see it acquire 100% of Target, enhancing its resources with the significant assets held by TARGET Engineering. This includes its 11,000 strong workforce, more than 30 marine vessels, and 52,000sqm of API/ASME-certified fabrication facilities.

Additionally, the acquisition includes TARGET’s controlling stake in IDROTEC srl, an Italian specialised marine design engineering firm known globally for its specialist marine, hydraulic and environmental design for the oil and gas sector, and marine developments.

“This acquisition further advances ALEC’s position in the regional construction industry while simultaneously enabling it to enter and fast-track its strategy of becoming a key player in the Middle East Oil & Gas, and Energy and Renewables sectors by drawing from the extensive expertise, and resources that TARGET Engineering has developed over its celebrated 40-year history,” said Khalifa Al Daboos, Deputy CEO at ICD.

“For the Investment Corporation of Dubai, this move enables us to align strongly with the UAE government’s ongoing investment into developing world-class critical infrastructure facilities that support its ambition of being an advanced, sustainable economy.”

Once complete, the acquisition will mean that the companies will have a joint turnover of nearly US$2 billion. However, TARGET will continue to operate as an independent entity, while drawing on the skills and resources of the broader ALEC Group, the statement continued.

“ALEC has an established track record of continuously enhancing the skills and capabilities within the organisation and leveraging this expertise to enter into – and become a market leader – in new market segments.

“Bringing TARGET Engineering within our fold is a move that plays to both these objectives as their specialist skillsets in Oil & Gas, Energy — including renewables, marine, and industrial construction — perfectly augment ALEC’s own capabilities. This will enable us to present an even stronger joint value proposition to customers,” said Kez Taylor, CEO at ALEC.

Founded in 1975, TARGET Engineering operates through four specialised divisions — Mechanical Oil & Gas, Electrical, Civil, and Marine. The company’s customer base is comprised of leading Oil & Gas companies, major EPC (Engineering, procurement, and construction) contractors, government entities and property developers.

Amongst the noteworthy projects that it has successfully completed include work on ENEC’s Barakah Nuclear Power Plant, ADNOC Gas Processing’s Ruwais LNG Terminal, Saudi Aramco’s Abqiq plant, and ENOC’s Jebal Ali Refinery expansion.

Its portfolio also includes current active projects such as Borouge 4 and Delma B in joint venture for ADNOC, and IGDC for ADGAS.

“Today’s announcement is a landmark event in the over four-decade long journey of our company”, said Chaouci Yassine, CEO of TARGET Engineering. “We will now benefit from the strong financial position and world-class leadership and project execution capabilities of ALEC. This will fuel our ambitious growth plans across the Middle East as we can now deliver best-of-breed EPC and specialist marine services to an even broader segment of high-profile regional entities.”

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Source: ME Construction News

Fleet companies wanting to be considered for the nomination for the Truck and Fleet Middle East Awards 2023 have until the beginning of January, the organisers have announced. 

Voting on product and distribution categories will open in the coming days as the process to decide the winners on the 25th January, 2023 begins heats up.

Fleet companies wanting to take part in any of the categories can continue to go to the Awards site to place themselves up for nomination.

The Awards celebrate the fleets and vehicles which play a key role in the operations, logistics and projects at the heart of the GCC economy.

The Awards are the only ones in the region to recognise the collaboration between manufacturers, distributors and fleets to create solutions that tackle the harshest transportation, logistics and mobility environment in the world.

The product awards vote includes not just vehicles and solutions launched in the past year, but any adaptation, customisation and revision making a difference to fleets where it matters – out on the road.

“Fleets in the region have endured and even flourished over the past couple of years. And this is there opportunity to get the recognition they deserve,” explained Stephen White, head of content, Truck and Fleet Middle East.

“We are also looking forwards to launching the voting for vehicles, products and services that they are using. We know that each vehicle and solution can be unique for every fleet buyer. And we know that requires the very best in customer service, innovation and consultations, even in the most remote parts of the region.”

“The Awards celebrate the trucks and vehicles that have truly made a difference to the region’s operators – and the Awards ensure your vehicles get the credit they deserve. The 2023 edition of the Awards is live – so go ahead and submit your business’ nomination!”

Almost 4,000 people voted for categories in the last Awards with Scania scooping prestigious Heavy Truck of the Year and DSV winning Fleet of the Year awards.

Returning after a successful first event earlier this year, the Awards will once again invite the market to vote for the best fleets and products and services in the region once the nomination process closes in November.

To see the categories and nomination yourself for the 2023 Truck and Fleet Middle East Awards visit the site today!

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Source: ME Construction News