Caterpillar has successfully completed a demonstration of its first battery electric 793 large mining truck, the company has announced.

The firm said it has completed development of the 793 prototype, with support from key mining customers participating in Caterpillar’s Early Learner program. Participants of the program with definitive electrification agreements include BHP, Freeport-McMoRan, Newmont Corporation, Rio Tinto and Teck Resources Limited.

The manufacturer said it would also be investing significantly in transforming its Arizona-based proving ground into a sustainable testing and validation hub of the future.

In September 2022, Caterpillar inked a deal to replace the haul truck fleet at a Chilean mine.

“Our global team came together to develop this battery truck at an accelerated pace to help our customers meet their sustainability commitments,” said Resource Industries Group President Denise Johnson. “This demonstration is a significant milestone, and we are excited for these trucks to get to work at customers’ sites around the world in the near future.”

The Early Learner program launched in 2021 and focuses on accelerating the development and validation of Caterpillar’s battery electric trucks at participating customers’ sites. A primary objective of the program is for Caterpillar to collaborate more closely with its customers as the industry undergoes transformational change through the energy transition, the firm said.

During the demonstration, Early Learner customers observed the prototype battery truck operate on a seven-kilometre course. According to Caterpillar, it monitored over 1,100 data channels, gathering 110,000 data points per second, to validate simulation and engineering modeling capabilities.

In late September 2022, the company said it had surpassed five billion tonnes of material hauled autonomously.

Fully loaded to its rated capacity, the truck achieved a top speed of 60km/h. The loaded truck traveled one kilometre up a 10% grade at 12km/h. The truck also performed a one kilometre run on a 10% downhill grade, capturing the energy that would normally be lost to heat and regenerating that energy to the battery. Upon completing the entire run, the truck maintained enough battery energy to perform additional complete cycles.

In early November 2022, Caterpillar launched new landscape attachments for earth-moving equipment.

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Developer Omniyat has inaugurated the ORLA, Dorchester Collection in Dubai, which is situated on a beachfront plot at the apex of Palm Jumeirah’s crescent, it has announced.

Designed by Foster + Partners and managed by the Dorchester Collection hospitality brand, the luxury property is situated on a 29,000sqm plot and offers 270-degree views of Dubai’s skyline and the Arabian Gulf. It features 86 two- and four-bedroom residences, three sky palaces, and one of the largest mansions on Palm Jumeirah, a statement said.

Each residence will feature oversized terraces and double-height ceilings of up to six metres and will be fitted out with European appliances.

In March 2022, Omniyat launched its AVA Palm Jumeirah luxury residential project.

“Our development philosophy is to create iconic, best-in-class projects through collaborations with industry luminaries. ORLA, Dorchester Collection, Dubai, is a signature property like no other that represents the epitome of style and will set the new standards for uber-luxury real estate,” said Mahdi Amjad, Founder, and Executive Chairman of OMNIYAT.

ORLA is the fourth Omniyat development in Dubai to be managed by Dorchester Collection and was conceived and designed to attract clientele with a discerning taste, accepting nothing short of the world’s finest luxuries, he added.

The development is expected to feature world-class amenities such as a private, resident-only 300sqm beach club; a large infinity, temperature-controlled outdoor pool, a private cinema, a state-of-the-art fitness centre, a business centre with two meeting rooms, a boardroom, and a multi-functional event space. Alongside these will be a library and cigar lounge, amongst other amenities, the statement said.

In early November 2022, Binghatti and Jacob & Co announced an ultra-luxury focused residential tower in Dubai.

Christopher Cowdray, CEO of Dorchester Collection added, “We are delighted to be deepening our partnership with OMNIYAT through more residential projects. ORLA, our fourth project with OMNIYAT, will re-imagine the property sector both in the Middle East and globally. It will be an iconic landmark with Dorchester Collection’s renowned hospitality offering.”

Mahdi Amjad concluded: “When it comes to introducing high-end luxury properties that surpass all global standards, Omniyat has built an enviable portfolio of uber-luxury properties designed to cater to the refined needs of affluent investors. Dubai’s leading global position on the real estate map makes it the de facto destination for the ultra-high-net-worth community seeking unique projects that would further elevate their lives.”

Late in November 2022, Ellington Properties said it would build an 88-unit project on the Palm Jumeirah.

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Dubai-based Alonsa Electric Group has announced the launch of a comprehensive line of Goodyear engine oils throughout the Middle East, Africa, and Asia.

Featuring 72 kinds of lubricants including over 300SKUs, the products were unveiled during the Automechanika 2022 Convention at Dubai World Trade Centre.

Speaking about the new products, Sunil Khanchandani, Managing Director of Alonsa Electric Gulf said, “We are excited to bring our advanced lubricant solutions to Automechanika 2022. The MENA region has always had a strong automotive enthusiast culture, and we look forward to sharing the latest oil and lubrication technology with vendors and consumers.”

In July 2020, ADNOC Distribution launched the first API-certified lubricant for hybrid engines in the UAE.

Keeping up with the latest technological advances, Goodyear is said to have developed a proprietary formulation using “100% virgin synthetic-based oil technology combined with innovative additive packages and state-of-the-art blending practices.”

The company says its latest products are exclusively tested in ISO 17025 laboratories, while its lubricants are created in subcontracted blending factories in the United Arab Emirates, Europe, and Malaysia.

The latest additions are available through its partner Alonsa which has been a member of the Al Tara Group since 1978 and distributes automotive engine oils and greases as one of its business verticals. Goodyear-branded engine oils cater to the automotive, motorcycle, industrial and construction, power generation and marine industries, the company concluded.

In March 2022, Shell said that it secured an Abu Dhabi distribution deal and, in August 2022, Valvoline said it sold its core business to Saudi Aramco.

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In an exclusive chat with Middle East Construction News (MECN), Gary Tracey, the recently minted Global Partner and Head of Cost Management at AESG says the firm will be looking to aggressively establish its new cost management (CM) service line within the regional construction space in the coming years.

“Over the next three years, our key goal for cost management is to strongly penetrate the market as it is the opportune time, and these services are highly relevant to the region. We are keen to engage with the construction industry and developers in ensuring that the many developments and giga-projects that have been announced and are underway are achieved, both within budget and the estimated time frame,” Tracey tells MECN.

The firm announced its new cost management service line early in November and said that it had assembled a “highly qualified cost management team”. The firm also noted that its service line would optimise cost efficiency and minimises risk for construction projects ranging from new developments and asset refurbishments to financial feasibility studies.

He adds, “AESG is already actively involved in a number of iconic projects in the region, and so it follows logically for us to support our clients with this new service. Through our expertise, will be able to guide clients in realising the maximum value for their money from the outset.”

Following the outbreak of the COVID-19 pandemic, construction costs and cost management have come into sharp focus, as a raft of issues – supply chain and logistics challenges, heightened oil prices etc – have colluded and significantly impacted project costs in the region, and across the globe.

Discussing the company’s CM strategy, he notes, “In terms of our strategy, we aim to grow our CM consultancy service line by hiring key talent, implementing a structured training programme to ensure quality is maintained, and developing key speciality services within the portfolio.”

He also states that the UAE and Saudi markets are where the firm anticipates it will see the most success for its new service line, “As the UAE market continues to grow and Saudi Arabia continues to boom with several giga projects, we believe both markets will provide the most opportunity for our CM services. We therefore anticipate our initial growth will be driven by success in both the UAE and KSA markets. We will then build on this momentum to expand the offering into London and Singapore.”

In July 2022, AESG said it achieved Fire and Life Safety certification from Saudi Civil Defense.

Asked about whether AESG will take on pure CM work or if the CM service will be offered as a value add on projects the consultancy is already involved in, Tracey responds, “The aim is to establish a core boutique cost management service line offering a full suite of cost management services throughout the life cycle of a project. These include, but are not limited to, feasibility studies, cost planning, procurement, post contract commercial management and post occupancy cost management.”

“Whilst we will aim to establish the core cost management service line as a standalone offering, we are keenly aware of the added value it brings by complementing AESG’s existing service portfolio. We will therefore dovetail this new offering with these established lines. Through our multidisciplinary service offering clients can get access to strategic, well-rounded, and integrated solutions across disciplines. This will enable us to provide specific value-added services for cost management whilst working closely with the other AESG service lines such as sustainability, MEP, strategy advisory, commissioning, fire life safety, acoustics, facades, and environmental consultancy.”

AESG says it is confident its new service line will be successful in its target markets, given the importance of cost management to a project’s success.

In August 2022, the firm said it would push smart buildings with WiredScore and SmartScore accreditation.

“I think it is important for the industry to be mindful and recognise the uncertainty in the economy. Therefore, robust strategies must be put in place to manage risk and achieve growth aspirations. This is where the need of a cost management consultant’s involvement at the very onset of the project is crucial to help clients realise the value for money and minimise client risk throughout the design and construction stages.”

He adds, “Our CM experts have over 20 years of providing cost insights to clients in the Middle East and Europe. Through intelligent capital planning and budgeting, active value management during design and robust procurement, we aim to establish a strong base of commercial rigor that will help projects meet their aspirational ambitions.”

Speaking about the relationship between cost management, project quality and sustainability, Tracey says that cost is a factor in any project, and the effective management of budgets is what ultimately determines outcomes.

In late November 2022, Savills revealed that fit-out costs in key office markets are continuing to rise.

“If the project is not financially feasible, developers are generally reluctant to proceed. However, given the importance of decarbonising the construction industry and the race to Net Zero it is now extremely important to prioritise sustainability on par with cost. To achieve this, it is important that sustainability goals are included when developing the project brief.”

He concludes, “All sustainability goals should be clearly identified, and feasibility studies carried out during the early project feasibility stage to ensure they fit within the client’s budget. The earlier these costs are identified, the easier it will be to implement into a design to achieve the budget. Thus, providing the opportunity for cost savings and meeting the project sustainability goals.”

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Developer Ellington Properties has awarded Al Ashram Contracting a US $30.5mn contract to begin the development of its Ellington House residential development in Dubai Hills Estate. The developer previously partnered with Al Ashram Contracting to deliver Harrington House in Jumeirah Village Circle.

According to a statement from the developer, Al Ashram Contracting has over four decades of experience and has worked on numerous and varied projects that have defined the country’s skyline. The contractor will bring a holistic approach to design, procurement and construction, as well as its engineering expertise and innovation, to the development of Ellington House.

“Our partnership with Al Ashram Contracting will support the delivery of our first ever project in the family-friendly community of Dubai Hills Estate. Their experience and expertise will help us fulfil our promise to deliver elevated living to our residents and meet the ever-growing demand for our developments,” said Joseph Thomas, Co-Founder of Ellington Properties.

In mid-March 2022, Ellington Properties said it had signed an agreement with entrepreneur Abdul Razeq Abdul Ahad to develop a new residential project and, in early November 2022, the developer began handovers of its Harrington House residential project.

Spanning 12 storeys, Ellington House will feature 150 units of one, two, and three-bedroom modern apartments and penthouses. It will offer a one-of-a-kind experience for its residents with views overlooking Dubai Hills Golf Course and the city skyline. Ellington House will feature a leisure and lap pool, an outdoor and indoor fitness centre, an activity garden, a clubhouse with lounge and library areas, a kid’s clubhouse, a mini-putt area, a barbeque area, and a yoga area, the statement noted.

Malek Ali Fakih, CEO of Al Ashram Contracting added, “We are excited to begin construction of Ellington House. We will work closely with Ellington Properties to deliver on our commitment to excellence, reliability, and quality. We will bring our ability to deliver outstanding work to the project and set new standards for premium residential living.”

Ellington Properties has a varied portfolio of award-winning projects including Belgravia and Belgravia II, Belgravia Square, Belgravia Heights I, Eaton Place, and Somerset Mews, all located in Jumeirah Village Circle; DT1 in Downtown Dubai as well as Wilton Terraces, and Wilton Park Residences.

In mid-November 2022, the developer said it would build a 88-unit project on the Palm Jumeirah in Dubai.

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His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister of Saudi Arabia, and Chairman of the Council of Economic and Development Affairs, has announced the accrediting of a development approach for Darin and Tarout Island.

The island is located off the coast of the Eastern Province of Saudi Arabia, in the Arabian Gulf, and is home to 120,000 people; the development approach will include the setting up of a new development cooperation for the island. Following a decision by the Council of Ministers, Prince Mohammed has allocated around US $704mn to be invested across the island, with the aim of improving the quality of life and developing its GDP.

According to a report by Saudi Press Agency, the investment aims to take advantage of the island’s heritage, environment and tourist aspects in a way that will contribute to economic diversity. Dating back more than 5,000 years, the island enjoys significant historical significance and boasts over 11 heritage sites. It is one of the oldest ports in the region and was previously known as a seaport and active market, where there was a warehouse for musk, perfume, textiles, and spices.

Early in November 2022, Partanna and Red Sea Global signed a MoU to explore carbon-negative concrete developments in Saudi Arabia.

The report stated that the Darin and Tarout Development Corporation’s development plan for the 32sqkm island includes identifying the island’s comparative and competitive advantages around three main pillars: preserving the cultural and historical heritage of the island; the revival of natural and environmental sites; and improving quality of life for residents and enhancing its tourism economy.

To achieve the goals of the island’s development plan, more than 19 qualitative initiatives have been developed, the report added.

On the cultural side, Darin castle and airport will be developed as heritage tourist destinations and will hold several cultural and heritage festivals. Several pedestrian trails that pass through the island’s heritage areas will be established, stated the report.

In mid-November 2022, RSG said it had become the first Saudi company to be awarded ISO 37000 certification.

On the environmental side, the largest mangrove forest will be created on the shores of the Arabian Gulf, in addition to building several environmental hotels and motels in natural areas, as well as improving the quality of life on the island through the construction of roads, infrastructure and public parks, including many stadiums and modern sports facilities, it added.

The development approach is expected to create significant economic and social impact on the island by contributing to GDP with an average of up to US $79mn on an annual basis, increasing the number of tourists to 1.36m by 2030. Thousands of career opportunities will be created as a result of these investments, while allocating up to 48% of the island’s area to parks, waterfronts, roads and facilities, it concluded.

Late in November 2022, Lazzarini unveiled a $8bn floating city concept for ultra-high-net-worth individuals.

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Sarens recently deployed a 750t crawler crane to perform a lifting operation for the ballroom trusses of the brand new Four Seasons hotel in Jeddah. The heavy-lift specialist was appointed by the Al-Hashemiah Contracting Company to complete the lift at Saudi Arabia’s latest luxury hotel development.

Maneuvering the 750t LR1750 crawler crane around the congested project site, Sarens successfully installed trusses weighing up to 63.5t at heights ranging from 30-to-90m. Lifts were performed using four lifting points without a spreader, with the crane slewing and crawling in SLDB 119m and SWDB 77m main boom as well as a 70m flyjib configuration, the company said.

A total of 35 trailers drove the crane across 1,400km of road comprising a five-day journey that required special permits from the Kingdom of Saudi Arabia. Six crew members then assembled – and later disassembled – the crane, which remained on site for six weeks.

In mid-September 2019, Sarens mobilised the world’s biggest crane for a UK nuclear plant lift.

As the soon-to-be luxury property is positioned near the sea, high wind speeds were a concern during crane operation, while the two-person Sarens team also had to contend with a worksite located in a busy residential area. To perform each lift, the crane had to park in the middle of the road, which required road closure permits from assembly through full disassembly.

According to Sarens Project Engineer, Shuaib Kadhem, “The site was very congested for a big crane like the LR1750, so the team had to communicate closely throughout the entire operation. The challenging part was the rigging arrangement: we had four lifting points with an eccentric centre of gravity, which meant the use of a spreader was not an option. Despite installations as high as 90m, we lifted all the loads safely and proved once again that at the end of the day, there is nothing too heavy and nothing too high.”

In November 2020, the company launched a new electric ring crane for heavy lifts and, in July 2022, Huisman announced a 700t crane for handling wind turbine components.

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Fit-out costs in key office markets around the world have continued to climb with inflation, according to leading property expert Savills.

Increased rents in many markets are also contributing to higher total net effective costs for prime office occupiers, which include fit-out costs and rents, as detailed by Savills in its latest Prime Office Costs (SPOC) analysis for Q3 2022.

Overall, the markets which have seen the largest increases in net effective costs over the quarter ended September are largely clustered in the EMEA (Europe, Middle East and Africa) region, including Dublin (+7%), London City (+5%), Dubai (+3%), and Berlin (+3%).

In early November 2022, CRC said that Dubai’s commercial market reached an all time high in Q3.

Fit-out cost inflation varies slightly by region, said Savills, from 14% year-on-year (YOY) on average in EMEA, to 9% YOY in Asia Pacific and 7% YOY in North America, as global supply chain issues have affected all markets, albeit to varying degrees.

However, rental rises have seen much greater variation. European and Middle Eastern prime CBD office markets have seen an increase in average gross rents of 6% over the past year, due to both index-linked rental increases and higher energy costs, which are often factored into service charges, said the statement from Savills.

Furthermore, low vacancy rates in the core markets have supported an increase in asking rents, especially in the Middle East. Swapnil Pillai, Associate Director – Research at Savills Middle East said: “The UAE economy is projected to grow around 6 – 7% in 2022, making it one of the high-growth markets in the world. Economic growth combined with the government’s push towards diversification and policy changes to promote business and long-term residence has led to a strong interest from corporates to expand in or enter the UAE.”

In late November 2022, Betterhomes said that it had purchased a full floor in a Motor City office tower.

“Demand has been concentrated across prime properties, leading to limited availability and an increase in rents. An increase in fit-out costs due to inflationary pressures has further contributed to the overall increase in occupancy cost,” he added.

Late in November 2022, Knight Frank said that the demand for Grade A office space in key UAE markets was rising.

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The Dubai Electricity and Water Authority (DEWA) has announced that more than 75% of the work has been completed on its Hatta Water Reservoir project, and is due for completion – fully on-schedule – in April 2023.

With a construction cost of US $23.4mn, the Hatta project has a storage capacity of 30m imperial gallons of water.

DEWA MD and CEO Saeed Mohammed Al Tayer explained that DEWA is implementing the project as part of efforts to store six billion gallons of water in aquifers that can be retrieved as and when needed. This can speed and facilitate rapid distribution and allow additional supplies to be sent to in-need zones as required without disruption to overall activity.

In January 2022, DEWA said that 35% of construction was complete on its Hatta hydroelectric plant and, in May 2022, it said it had completed 98.83% of its $72.4mn project to extend Dubai’s water transmission network.

The new Hatta reservoir will provide the emirate with a strategic reserve of over 50m gallons of desalinated water per day in emergencies for 90 days, while ensuring the quality of the stored water remains unaffected by external factors.

The project is part of a larger commitment by DEWA to ensure ongoing development via sustainable models throughout the emirates, with stronger outreach to rural communities and less densely-populated areas.

Al Tayer concluded, “We are also working to consolidate the foundations of sustainable development for Hatta.”

In October 2022, DEWA’s Jebel Ali complex won a Guinness World Record title.

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Knight Frank has revealed that the demand for Grade A office space is continuing to rise, along with occupancy levels. It also revealed that office rents in the UAE’s two largest business hubs – Dubai and Abu Dhabi – remained resilient over the quarter.

“With 265,000sqft of new office requirements during Q3, our data shows that Dubai has seen 739,000sqft of new office demand so far this year, and is on track to surpass the 1.1m sqft of requirements we registered in 2021,” said Faisal Durrani, Partner – Head of Middle East Research at Knight Frank.

He added, “The biggest challenge for the market is however a shortage of prime Grade A space. With just 2.9m sqft due to complete between now and 2025, and with Grade A occupancy levels hovering at around 90% on average – even higher for some of the most sought-after buildings – occupiers entering the market or looking to expand are faced with a very limited number of options.”

In early November 2022, Eshraq sells Reportage Properties 650,000sqft land plot on Al Reem Island.

The firm said that, excluding confidential requirements, business services tenants are responsible for the bulk of Dubai’s new office new demand, together accounting for 97,000sqft of space requirements during Q3. Barsha Heights (31,000sqft), Business Bay (27,000sqft), JLT (28,000sqft) and Sheikh Zayed Road (22,000sqft) lead area specific office demand, the firm elaborated.

Andrew Love, Partner – Head of Occupier-Landlord Strategy and Solutions and Head of Middle East Capital Markets added, “There is a distinct trend of a flight to quality that has bedded in, with occupiers migrating away from older buildings into more modern builds that are well managed and maintained and many international businesses are looking for space with ESG credentials. Such buildings are more likely to be found in newer part of the city, and so it is perhaps unsurprising that submarkets with higher concentrations of new, or relatively modern, stock have seen rents sail past pre-pandemic levels.”

Durrani elaborated, “What’s more, with requirements firmly centred on best-in-class buildings, office lease rates for the best buildings are going to continue rising. Grade B, or older more secondary stock will however likely continue to struggle, with the gap between rental performance in the long established two-tiered office market likely to widen further.”

In mid-November 2022, ValuStrat said that Dubai apartment values were starting to stabilise.

According to Knight Frank’s research, despite rising demand, the volume of new supply remains limited.

“Our forecasts are for 2.9m sqft to be delivered by the end of 2025, with District 2020 and Uptown Tower T2 accounting for the bulk of new space. District 2020 (formerly the EXPO 2020 site) in Dubai South, being developed by Dubai Holding is the largest single development of commercial office space planned for the city and is expected to be completed in 2023,” Love stated.

The severity of the shortage of new office space, combined with rising demand, particularly for high-quality offices suggests that office rents will continue to experience upward pressure, especially with Grade A occupancy levels running in the high 80s to low 90s percent, or even higher for some of the newer Grade A buildings in the city, the firm revealed.

In the same month, Abu Dhabi’s Department of Municipalities and Transport (DMT) said real estate transactions in the emirate in Q3 exceeded $5.7bn.

Discussing the Abu Dhabi market, David Crook, Partner – Head of Abu Dhabi said, “In Abu Dhabi, confidence amongst businesses is rising due to the improved domestic economic environment, a rise in tourist numbers as well as the recent easing of COVID-19 restrictions. Office rents in all the main submarkets tracked by Knight Frank have remained stable during Q3 2022.”

He continued, “Capital Centre has outpaced the rest of the city, with average rents climbing by 4.9% over the course of the last 12 months, taking them to $381 per sqm. The biggest challenge for the market is the shortage of Grade A space. In fact, locations like ADGM, along with the some of the city’s best buildings, occupancy levels are running at 95%, highlighting the challenge new entrants, or those looking to expand face.”

The steady office demand is said to be in part linked to the stability in rents, which are now up to 15.4% higher than in 2020 (Corniche/Downtown), or 6.3% and 4.3% in the case of Capital Centre and Al Reem Island respectively.

Late in November 2022, Betterhomes said it had purchased a full floor in a Motor City office tower.

“What we’re seeing is a widespread return of employees to offices and business confidence is rising in tandem. Businesses feel good about life right now, as this is reflected in the non-oil sector PMI readings – and demand for office space is rising across the board. However, like Dubai, the Abu Dhabi office market continues to face an insufficient supply of good quality fitted space in well managed buildings,” Durrani noted.

According to Knight Frank’s research, most office space requirements in Abu Dhabi are driven by the education and media sectors. These two sectors account for 51% of the 18,000sqm of new office demand registered so far this year, the firm revealed.

The flexibility of serviced offices remains a key characteristic for newly entrants to the market, as well as start-ups. There is a demand for flexible offices in branded serviced offices, which has led to existing operators looking for opportunities to expand and tenants preferring shorter leases, the firm concluded.

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